THE CHAIRMAN: Is there any discussion on this paper, or any questions you want to ask Mr. Long? If not, we will proceed to the Report of Committee on Commission Accounting Rulings, Mr. H. E. Addenbrooke, of the Commonwealth Edison Company, Chicago, chairman. REPORT OF COMMITTEE ON COMMISSION ACCOUNTING RULINGS It is the duty of the Committee on Commission Accounting Rulings to observe and study all Commission cases and decisions covering rulings relating to accounting or, more generally, matters of accounting interest. The Committee hopes to be helpful in establishing consistency in the application of accounting principles. In view of the fact that fully three-quarters of the forty-eight states in the American Union have Commissions which have supervision of some sort over public utilities, it will be seen that the work undertaken by the Committee is of importance. It is needless to say that the work of the Committee was interrupted by the still more important duties connected with the winning of the war. Owing to the war and to the pressing duties of reconstruction, there has been but one meeting of the Committee since the last annual convention of the National Electric Light Association. This meeting was held at N.E.L.A. headquarters in New York City on March 25, 1919. At the time it was hoped that enough data might be collected to justify consideration at another meeting of the Committee to be held before the date of the 1919 convention. However, it has not been feasible to get the desired information together in the time available, and therefore this report is based mainly on the conclusions reached at the March meeting of the Committee. The Committee is endeavoring to obtain a classified list of all Commission Accounting Rulings issued up to the present time, in order to make a comprehensive study of them. At the moment it is impossible to say whether this important work can be carried out without appealing directly to the various Commissions for their cooperation. It may be necessary to do this. We believe that the time is at hand when the subject of the cost of issuing bonds, notes and obligations, and the discount in connection therewith, should be given most careful consideration. The rulings of the various Commissions on this subject appear to be contradictory; it is a fact that in some cases the Manuscript of this report was received April twenty-second. ruling of one Commission is adverse to that of other Commissions. In some decisions the rulings appear to be hazy; and frequently they seem to be prejudicial to the interests of member companies, although, no doubt, unintentionally so. It is our opinion that the subject of depreciation should be given more particular study, from an accounting point of view, than it has had in the past, not only for the reasons which have heretofore existed and which today continue with undiminished force, but also for the further reason that the Internal Revenue Department of the United States Government recognizes, and perhaps emphasizes the importance of the subject. Another subject that should be given careful study, in our opinion, is that of reserves for replacements, sinking funds, etc. Here the facts should be set out showing how such reserves are viewed and treated by the Commissions, in order that their attitude may be clear to the member companies of the Association. In other words, where doubt exists, or restrictive orders or rulings are enforced, the Committee may very well present to the Commissions for their consideration a suggested method, setting forth the full reasons therefor. For these reasons, and for reasons of like character, we believe that the work of the Committee should be continued. Respectfully submitted, HE ADDENBROOKE, Chairman EH DAVIS E D DREYFUS HC HOPSON HT HUGHES W A JONES A C VAN DREISEN THE CHAIRMAN: You have heard this very interesting report of the Committee on Commission Accounting Rulings. This is a very important subject. Are there any questions you would like to ask Mr. Addenbrooke? If not, we will proceed to the next business, which is the report of the Committee on Accounting Education, Mr. H. B. Lohmeyer, of the Consolidated Gas, Electric Light and Power Company, of Baltimore, chairman. REPORT OF THE COMMITTEE ON ACCOUNTING EDUCATION During the past year your Committee has bent its efforts to bringing before the industry the value and importance of the Accounting Courses, and to completing all the lessons of the Advanced Course. The preparation of the lessons of the Advanced Course, now happily almost completed, is a notable work, worthy of the high standard of the accountants in the industry and thoroughly typical of the progressive character of the electric utility business. The 36 lessons are complete, with but few exceptions, and there have been engaged in their preparation 16 authors and a board of 9 editors, each having particular charge of some phase of the work. The authors are located in Baltimore, Brooklyn, Chicago, Cleveland, Detroit, Milwaukee, Newark, New York and Rochester. No pains have been spared in producing the most comprehensive course in accounting that has ever been assembled. It is complete in every respect, covering both the theory and practice, and the practical contact of the accounting work with operating and administrative matters has been ensured in many different ways. The authors and editors are accountants and utility men of wide experience and of prominence in the industry, as well as men with ample experience in educational work. The financial side of the courses to March 25, 1919, shows as follows: There have been sold to date 700 Elementary and 74 Ad vanced Courses, a total of 774. Manuscript of this report was received April seventeenth. Following a meeting on August 2, 1918, a comprehensive sales campaign was started covering the entire country and lasting three months. Due to the war the results were not as great as was hoped, but considering this, they were gratifying in the extent of the publicity obtained. In this campaign all companies in towns of 5000 population or more were reached, 2046 letters being sent to 1006 companies. The country was divided into nine districts, each of which was supervised and followed up by a member of this Committee. Arrangements are under way for a joint educational campaign with the Commercial Section, and every effort will be made to secure the interest and cooperation of all the companies in the industry. Our most important work, aside from the preparation of the Advanced Course, has been to try to impress central station managers and executives with the value and necessity of this Advanced Course, and enlist their enthusiastic support. The course is now complete and its success rests in the hands of the managers of the industry. Without your assistance we cannot reach the employees of your companies, and failing that goal the course must fall. This Advanced Course is not the usual accounting course, such as offered by the various schools and universities throughout the country. Its equal cannot be had in any school in the United States, because it has been written by men who are specialists in the various subjects embraced. It has been written to your employees and for the electric utility industry. It is not a theoretical course collected from college text-books and other authorities on the theory of accounts. It is in truth a specialized course in Business Administration, Finance and Accounts for the electrical utility industry. Every lesson and special lecture has been prepared by the best practical specialist on each subject that the industry affords, and every lesson has been reviewed and edited, not simply read, by the industry's foremost accountants and ablest educators. Every lesson has been worked out by an able accountant and thereby proved practical and correct from the student's viewpoint. The scope of the course is such that it will meet the needs |