REPORT OF THE COMMITTEE FOR THE STUDY OF THE BEST METHODS OF COLLECTING AND ACCOUNTING FOR VARIABLE RATES OF FARE

ACTING WITH

COMMITTEE ON DETERMINING PROPER BASIS FOR RATES AND FARES.

To the American Electric Railway Association:

GENTLEMEN. The Committee of the Accountants' Association for the Study of the Best Methods for Collecting and Accounting for Variable Rates of Fares, begs leave to submit that it has given time and thought to the subject assigned to it at the January conference. A circular letter designed to bring out much desired information was drafted and copies of the same forwarded to various companies in Europe with requests that the questions propounded be answered.

The letter is appended.

You are perhaps familiar with this Association which embraces a membership of about four hundred of the leading electric railway companies of the United States, Canada, Mexico and South America.

The little folder attached, which we have issued to indicate to non-members companies in a somewhat brief way the work which is being carried on, will show you the scope of our efforts.

Among the committees of the American Association, which is the parent body, you will note one on Determining Proper Basis for Rates and Fares. This Committee is considering the American practice of fares, and last year made a most comprehensive report. This year at our January conference our affiliated Accountants' Association was requested to form a committee to take up the "study of the best methods for collecting and accounting for variable rates of fares.'

This committee, after various meetings, has decided that to make progress it needs to obtain information concerning the practice in countries other than those on this continent, and with a view to securing such information, I am writing at the request of the committee for data from various companies throughout Europe.

We hesitate to ask you to devote any considerable time to supplying the information desired, but it would be deeply appreciated if we could obtain full information as to the methods in force in the collection and accounting for fares received on the lines of your company.

This should involve a statement as to the rates of fare effective, the basis upon which such rates have been determined, the length of the zones, whether these fares are in cash form, whether tickets are used, whether the zones are fixed or overlapping fare limits, the method of registration of fares, which should include a statement of just how the fare is paid; the method of inspection by supervisory force other than conductors; whether fare boxes are used, the kind of device; whether fares are collected as passengers enter car, whether transfers are used and the extent of their use, conditions governing issue of transfers and the methods of accounting for fares of all classes, that is, from the conductor to the bank, passing through your auditing and treasury departments.

We would also like to obtain samples of the tickets used, blank forms of reports and records, and a statement as to whether your present plan is satisfactory, with suggestions as to ways in which, in your judgment, improvements could be made.

Another matter we should like to obtain information about is your method of checking the work of the conductors on the cars to determine whether all passengers have been fully accounted for. In short, we would like to have a brief history of the plan in effect on your road from the time of the payment of the fare or purchase of ticket, by the passenger to the time when the money received for such fare or ticket goes into your bank account. Also, the methods employed to account for ticket sales and collections, stating in this connection just who sells the tickets, that is, whether the conductors are allowed to dispose of same on cars, or whether they are sold to your patrons at designated points by agents, and so forth.

We enclose a copy of the 1911 report of the Committee, and shall be very glad to furnish you with copies of the report to be presented to the 1912 Convention to be held in October.

Will you please also give some information as to size and character of your road, that is, track mileage, cars owned, total passengers carried (annually) divided between cash and transfer passengers, whether city, suburban or interurban operation, population served, and earnings, if consistent.

As the time is very short, the meeting being held between the 7th and 11th of October we would greatly appreciate a prompt reply, and if we can reciprocate in any way, please command us. Yours very truly, (Signed) H. C. DONECKER, Secretary.

The Committee has already received acknowledgments with assurances in some cases that the data will be supplied. Efforts were also made to secure similar information from companies located in the countries to the south of us with promising results. As the subject is broad in its scope and entails much detail work sufficient time has not elapsed to enable the Committee to make a comprehensive report at this time to the members therefore desire to report progress.

M. R. BOYLAN, Chairman,

H. J. DAVIES,

C. H. ALLEN.

Committee for the Study of the Best Methods of Collecting and Accounting for Variable Rates of Fares.

CHAIRMAN HARRIES:- Gentlemen, the Report of the Committee on Determining the Proper Basis for Rates and Fares, I presume will follow the ordinary course-be accepted and filed for further use.

The next speaker is Mr. Morrell W. Gaines, statistician of Brown Brothers & Co., New York, who will talk to us on "Electric Railway Securities."

ELECTRIC RAILWAY SECURITIES

By MORRELL W. GAINES, Statistician,
Brown Brothers, New York, N. Y.

The electric railway had its first beginning twenty-five years ago. Its advent is within the memory of men still young. The pioneers of its development are still its leaders. Electric traction, vast in scope, marvelous in evolution, potent in the moulding of cities, and quickener of the pulse of urban life, is a new industry. Yet the base upon which the industry rests is ancient and solid. Cities are older than the first faint legends of history. The gathering of men into towns for commerce and intercourse is the starting point of civilization. Cities are essential to civilization. Where in times past they have been destroyed by conquest, pillage, earthquake or fire they have risen again and yet again from their ruin, as long as the site remained and a population whom the lure of cities could touch remained in the land. It is not stone and mortar that make men speak of Rome as eternal. Our own swiftly built cities, each in its place by harbor, river or lake, or set in fertile fields, are in as true a sense, eternal, because a thriving people has a lasting need of them.

A city has two great necessities, equally enduring with its own existence. To sustain life it must have its means of communica