the falling off in gross earnings of member companies and the Finance Committee estimated next year's income to be approximately $170,000.00. They also estimated next year's expenses, making necessary allowances for contingencies and necessary re-adjustments in the Association's work, at $150,000.00 to $160,000.00, thus permitting an apparent balance at the end of next year of from $10,000.00 to $15,000.00.

Increase in Payroll

Mr. Pardee then presented the recommendation of the Secretary that total salary increases amounting to $187.00 a month, effective November 1st, be made in the case of certain members of the staff, who had taken over additional work which he had formerly done. In addition to this the employment of an engineer and additional office help was suggested as necessary somewhat later in the year, and this matter will be passed upon later by the Finance Committee. On motion of Mr. Pardee the above salary increases were approved.

Annual Audit of Books

Mr. Pardee then recommended that Mr. Boylan of the Public Service Railway Company be asked to complete the audit for the fiscal year ending October 31st as he had already made the 11-months statement, stating that the Finance Committee would then recommend for the approval of the Executive Committee, after the beginning of the new Association year a public accountant to audit the books of the Association, with the understanding that it would not be necessary to employ such an accountant to check the last year's report.

On motion of Mr. Shannahan the above recommendation was approved.

Access to Safe Deposit Box

Mr. Pardee stated the Committee had approved a formal resolution, copy of which he read, for access to the safe deposit box covering the requirements expressed in the resolution passed at the meeting on October 6th that at least two officers of the Association be authorized to have access to the box. The formal resolution was approved by the Executive Committee.

Approval of Finance Committee of Routine Office Expenses The question of the approval of routine office expenses was then presented by Mr. Pardee and attention was called to the general resolution passed at the last meeting, providing that all routine office expenses be authorized paid by the Treasurer and Secretary without the prior approval by the Finance Committee. In view of the fact that this would cover practically all expenditures, and since the above resolution did not specify these expenditures in detail as provided in the Constitution, the Finance Committee recommended that such expenditures be limited to the payment of the payroll in which no

increases in amount were shown, and also the ordinary expenditures made out of the petty cash fund, which amounts to $750.

He stated

that the members of the Committee would arrange to divide the work of approving the vouchers for all other expenditures between them, and would arrange so that some member would be available for this purpose.

A motion by Mr. Pardee was passed that no disbursements be made from the funds of the Association without prior approval of at least one member of the Committee on Finance, except the ordinary expenditures out of the petty cash fund and the payroll vouchers in which no increase in amount is shown.

A further resolution was passed on motion of Mr. Pardee that the Treasurer be authorized to disburse the funds of the Association only on vouchers signed by at least one member of the Finance Committee, except payroll vouchers which do not show an increase in amount.

CONVENTION EXPENSES

The Secretary then presented a comparative and summarized statement of the expenses of the recent Convention, which amounted in total to $6,889.00 as compared with $14,167.00 for the previous year. Of this amount $2,055.00 were for entertainment this year as compared with $4,110.00 last year. The attendance this year was 1,250 as compared with 3,300 delegates last year. A complete statement showing the expenditures for each entertainment feature as well as for each item of general Convention expense is contained in the report placed on file.

Mr. Palmer stated that the Transportation and Traffic Association was considering the question of studying the motor bus, but had deferred action in view of the existence of a committee of the American Association on this subject, but suggested that there might be a reason for a joint committee representing the Engineering Association and the Transportation and Traffic Association to take up this matter from their respective standpoints, under the guidance of the American Committee. On motion of Mr. Pardee, the appointment of committees by the Engineering Association and the Transportation and Traffic Association, stating their respective phases of the subject on Trackless Transportation under the guidance of the American Committee on this subject was passed.

REQUESTS FROM ENGINEERING ASSOCIATION

The Secretary presented a letter from Mr. C. S. Kimball, President of the Engineering Association, recommending the appointment of an engineer to assist the Secretary in handling matters relating to the Engineering Association, and also recommended that the Executive Committee reconsider the matter of payment of the expenses of standing Committees of the Engineering Association. The employment of an

engineer has already been considered by the Committee on Finance and on motion of Mr. Sawyer the payment of committee expenses was referred to the Finance Committee for further consideration.

APPOINTMENT OF COMMITTEES

President Todd stated that he had been giving considerable thought to the appointment of committees for next year, and would be very glad to have suggestions from the members of the Executive Committee at the close of the meeting. In accordance with the provision in the Constitution and By-Laws covering the authorization for the appointment of special committees, a motion was made by Mr. Henry that the following special committees be authorized by the Executive Committee: Valuation, Electrolysis, Trackless Transportation, Mail Pay, Education and Excess Profit Taxes.

RECOMMENDATION OF MR. WICKWIRE ON CO-OPERATION OF

MANUFACTURERS

Mr. Coates presented a letter from Mr. Wickwire containing a recommendation that a special committee be appointed from the manufacturers to enlist their support in a general campaign for the improvement of the condition of the industry along the lines indicated in Mr. Wickwire's paper before the Convention.

On motion of Mr. Coates, a special committee of five, with Mr. Wickwire as Chairman, was authorized to take up the question of co-operation of the manufacturers in the interests of the electric railway industry. This committee is to keep in touch with and report to the Committee on Policy.

The authorization of the appointment of a representative from this Association on the National Joint Committee of Public Utility Associations was presented and on motion by Mr. Bradlee the continuation of the Association's representation on the joint committee was authorized.

MEMBERSHIP COMMITTEE WORK

The Membership Committee's work, especially with reference to manufacturers during the coming year, was presented by Mr. Ellicott. On his motion, a resolution was passed stating that it is the hope and expectancy of this Association that the Membership Committee produce the equivalent of a 20 per cent increase in the number of manufacturers for the coming year.

There being no further business, the meeting adjourned at I P. M. Respectfully submitted,

Approved:

ROBERT I. TODD,
President.

JAMES W. WELSH,
Executive Secretary.

Meeting of December 2, 1921

The President, Mr. Robert I. Todd, called the meeting to order at 10:15 o'clock A. M. at the office of President Todd, Indianapolis, Indiana.

The following gentlemen were present: Messrs. Robert I. Todd (President), J. G. Barry, H. E. Chubbuck, F. R. Coates, C. D. Emmons, W. H. Sawyer, L. H. Palmer, A. W. Brady, C. L. Henry, C. R. Ellicott, H. V. Bozell, Harry Reid, E. F. Wickwire, L. E. Gould, L. St. Clair, A. G. Oldberding and the Secretary, Mr. James W. Welsh.

FINANCIAL REPORT

The Secretary reported that the auditors of the Public Service Railway Company had just finished the Annual audit for the twelve months, ending October 31, 1921, stating that this will be published in the Annual Proceedings, and a number of the principal items were read for the information of the Committee.

The tentative report for the month of November was next submitted by the Secretary and approved.

REPORT OF COMMITTEE ON FINANCE

Mr. J. G. Barry presented the following report:

"At a meeting of your Finance Committee held at the Headquarters of the Association, 8 West 40th Street, New York City, on Friday, October 28, 1921, Mr. R. P. Stevens was appointed a sub-committee of one with authority to select a public accountant to audit the books of the Association for the fiscal year beginning November 1st, 1921, in accordance with the requirements of the Constitution and By-Laws of the Association requiring a quarterly audit by a certified public accountant.

In accordance therewith, after due investigation and negotiation, Mr. Stevens recommends that the offer of Arthur Anderson and Company dated November 21st, 1921, offering to do the work at their regular per diem rates with a maximum charge of $150 per quarter, a copy of which proposition is hereto attached, be accepted.

"Mr. Arthur Anderson, the senior partner in this firm, is Professor of Accounting at the Northwestern University, Chicago. This firm, under the direction of the National City Company and Lee Higginson and Company have been the auditors the past year for the Republic Railway and Light Company and its subsidiaries, Mr. Stevens thereby becoming personally familiar with the members of the firm and their methods, enabling him to recommend them without reservation.

"This firm has a New Yor koffice at 17 East 42nd Street, in close proximity to the offices of the American Electric Railway Association, which location is of advantage to the officials of the Association in case of necessary consultation, and which location also enables this firm to quote a lower price for the work than would be necessary if they were located at a greater distance. "Arthur Anderson and Company do a great deal of auditing for the Samuel Insull properties, Byllesby & Company, the National City Company, etc., and their reputation is most excellent.

"Your Committee believes that the expenses of these quarterly audits, if charged on the per diem basis at the regular rates, would amount to very much in excess of the maximum guaranteed by Arthur Anderson & Company, which possibility, however, they fully appreciate and state that they have made their proposition after due consideration of your Committee's request for the lowest price consistent under the conditions, and the fact that the close proximity of the offices will enable them to assign their forces to this work to good advantage.

"It is specifically suggested by Arthur Anderson & Company that the low guarantee proposed is quite unusual, but is submitted in view of the premises and their appreciation of the work given them by a number of other clients who are members of the Association, and the price will not in any way effect quality of work, as they would not care to undertake it unless they were able to give it the same careful attention that their policy requires that they give other clients regardless of any unforeseen expense that they may be put to.

"Authority for the Finance Committee to enter into the contract with Arthur Anderson and Company in accordance with their proposition of November 21st, is respectfully requested."

Mr. Barry moved that the recommendation of the Committee be accepted and that the Committee be authorized to contract with the Arthur Anderson Company to conduct the audit of the Association accounts quarterly, as provided in the Constitution.

The motion was seconded by Mr. Emmons and carried.

REPORT OF THE COMMITTEE ON POLICY

In the absence of Mr. Budd, Chairman, the Secretary presented the following resolution passed by the Engineering Association at the recent Convention:

"RESOLVED, That the Executive Committee of the Engineering Association be requested to issue to the proper executive bodies of the American Railway Engineering Association, the American Railway Association, the Mechanical Section, the National Electric Light Association, the American Institute of Electrical Engineers, the Association of Railway Electrical Engineers, and such other organizations as the Executive Committee may deem expedient, a suggestion that they appoint each two representatives on the activities of these several associations in collecting data regarding heavy traction, and in other ways promoting the study of the subject."

On motion of Mr. Sawyer, the general plan as provided in the above resolution was approved with instructions that the Engineering Association conduct its relations in this matter under the supervision of the Committee on Policy.

COMMITTEE ON NATIONAL RELATIONS

Mr. C. L. Henry, Chairman, submitted a verbal report stating that the Committee had filed a brief with the Interstate Commerce Com