companies to urge upor and denonsmit ti ter enines the benefits to be derived in any advantage o test courses Web out the interest and assistant the exears a member companies, the greatest bener vil nreizer and the Asso ciation may lose the mine vested i the V

COMMITTEE ON FORA OF ANNUAL REMET.

War conditions emphasized rcing the trashus entailed on accounting staffs by the elbrue denunts if Sue Commis sions for reports. The Commmer waressed & lerer, dated Angust 21, 1918, to the chat if the Committee on Statistics and Accounts of Public Utility Companies National Associa tion Railway and Utility Commssines ang atention to the serious conditions confronting liny corporations in obtaining competent and trained accounts, and the necessity of rehef from reporting unnecessary data. This letter, however, did not receive the attention expected. Meeting of the Accounting Section, beld October 4, 1918, the At an Executive Commitee Committee on Form of Annual Reports prepared a preamble and resolution setting forth the unreasonable demands in the forms of reports required of utility corporations, urging that steps be taken to bring about a revision of requirements. This correspondence is fully set forth in the report of Mr. W. J. Meyers, Chairman of the Committee on Form of Annual Reports to Commissions. This resolution, accompanied by a letter from the Secretary of the Association. Mr. Martin, was sent to all State Commissions, and their replies, in a measure, indicated in some cases a willingness to consider seriously giving the relief sought. All member companies received a copy of this correspondence, The Committee felt it had gone as far as could be reasonably expected by presenting its recommendations to all the State Commissions, following the approval by the Public Policy Committee, and also by notifying each member company of the action taken,

It is suggested that through the medium of State and Geographic Sections and by individual member companies, this matter he brought forcibly to the attention of the Commissions. Greater interest should be taken, however, in this most important matter by public utility operators, and after careful study of

Mr. Meyer's report, the executives of member companies should take this matter under serious consideration.

COMMITTEE ON OPERATING RECORDS

The work of this Committee was largely confined to the standardization of forms to accompany the report of a previous committee, which was prepared for presentation at the 1917 convention. In its report the Committee has presented a comprehensive system of records, which should be of great value to our members.

In presenting this report the Committee desires to impress upon all member companies that the system outlined for the transportation department of public utility companies covering electric vehicles should be uniformly adopted. For any interchange of data to be of value, it is imperative that all member companies use the same uniform system as far as practicable.

COMMITTEE ON MERCHANDISING ACCOUNTING

Due to the effect of the war on commercial departments of public utility companies, this Committee, while complete in its organization, was forced to remain inactive. With the reorganizaton of the Commercial Departments of many companies and the consequent activity of the Commercial Section, it appears that this Committee will have opportunity to do most valuable work during the coming year.

The Commercial Section is presenting at this Convention comprehensive reports covering proposed activities, and it is suggested that cooperation between the Commercial Section and the Committee on Merchandising Accounting will enable our Section to be of great assistance in standardizing all commercial reporting requirements.

COMMITTEE ON COST ACCOUNTING AND STATISTICS

Without uniformity in accounting practice, this Committee is greatly handicapped. Any system of cost accounting and statistics is adaptable and valuable for comparative purposes only to such organizations as have adopted uniform principles of accounting. Until such time as all principles are agreed upon, it is suggested that much valuable work can be accomplished by a

Acc.

study of the methods in vogue and the forms used by the larger corporations for accumulating and presenting cost statistics to executives. If the Committee could point out and recommend the best methods for accumulating these data, without an attempt to determine a standardization of unit cost or method of arriving at unit cost, it undoubtedly would prove of benefit.

COMMITTEE On Customers' RECORDS AND BILLING METHODS

There is no more important division of an Accounting Department than that devoted to Customers' Accounts There are numerous systems in use and constant experiments are being made to determine the most efficient and economical methods. Your Committee has endeavored to accumulate and present various systems and also to outline certain new methods. If the various methods presented from time to time are studied, the continued work of this Committee should prove valuable, and should prevent needless and costly experiments.

COMMITTEE ON ACCOUNTING SERVICE TO MEMBER COMPANIES AND THE MONTHLY BULLETIN

It would be a surprise to a great many executives if they knew how much their Accounting Department relied on service rendered by this Committee. This work as supervised by Mr. Frederick Smith and Mr. F. L. Hall, deserves the appreciation of the entire Association for the presentation through the monthly BULLETIN of solutions of many accounting problems which confront the accountants of member companies. Whereas all realize the importance of uniform accounting, both National and State, it is interesting to note in this connection how various is the opinion of members of the Association in solving different accounting principles. We would suggest to the accounting officers that the very points that are being answered in the monthly BULLETIN from time to time are largely covered in the Accounting Educational Courses. This fact is cited to show the value of taking advantage of the Accounting Course instructions.

COMMITTEE ON PURCHASING AND STOREOOM ACCOUNTING

The report of this Committee should prove of interest, as it sets forth many new and novel practices adopted during the war

period. The Committee suggests that there is need of serious study of inventory methods as adopted by larger companies. This subject is felt to be one of great importance in the solving of purchasing and storeroom methods and should not be approached wholly from the accountants' viewpoint. It is suggested, also, that the Committee consider this subject for future work, and if the representatives of the larger companies are maintained on the Committee, a study could be made which would bring out the result of practice different from that of theoretical accounting.

COMMITTEE ON CLASSIFICATION OF ACCOUNTS AND COMMITTEE ON ACCOUNTING RELATIONS WITH OTHER ASSOCIATIONS

Due to war conditions, and the general inactivities resulting therefrom, it was not possible for these Committees to continue the great activity of previous years, nor to carry out fully previously well-laid plans. The necessity of a uniform system of accounting has been universally recognized by all accountants. Unfortunately, with the varied interests of Government, State, and other regulatory bodies, and also due to the lack of adoption by public utility operators of uniform principles, the work of this Committee is greatly handicapped. This work would prove more effective if greater cooperation could be obtained between the various Geographic and other sections of the Association. A great deal of work undertaken by the Classification of Accounts Committee has been duplicated in a measure by other Sections, particularly State Sections. If the thought of all could be centralized upon formulating certain fundamental underlying principles of accounting upon which the National Association and the executives of member companies could agree, a long step would be made towards uniformity. If the approval of the Public Policy Committee can be obtained, it is suggested that the Committee be empowered to invite a representative of the National Association of Railway and Utility Commissioners to become a member of the Classification of Accounts Committee. If this could be brought about, it may be that many apparently disputed points would be found of no moment and the adoption. of a standard accounting system in so far as principles are concerned would be nearer realization.

CONCLUSION

The advisability of an invitation being extended by the Accounting Section to all other Sections to appoint a member to each of the various Accounting Committees is suggested for future consideration. If this policy could be inaugurated, and the other Sections reciprocated, closer unity would be obtained between the operators and accountants, and we would benefit by obtaining solution of the problems other than from a purely accounting viewpoint.

It is also suggested, in order to avoid duplication of work on behalf of the standing committees of the Accounting Section and the committees of the State or Geographic Sections, that the Chairman of the Accounting Section of each State or Geographic Section be invited to become a member ex-officio of the Executive Committee of the Accounting Section. If this were done, the accounting problems of each State could be presented more readily, and differences of ideas on principle in a measure eliminated.

Heretofore, so far as I have been able to observe, it has fallen upon the Chairman to present and prepare for the National Executive Committee the budget covering requests for such sums of money as may be necessary for the proper carrying on of the work of the Section. It is suggested that in future the Treasurer of the Accounting Section should prepare such budget covering the requirements of the Section, for submission by the Chairman to the Executive Committee.

The suggestion is made that an additional committee be formed to make a thorough study of credit and collection departments. It is believed that a review of the methods, organization and policies followed successfully by some of our members would prove of interest and financial value.

During the coming year the Accounting Section undoubtedly will take upon itself old, pre-war activities and will prove of greater value than during the past year. If the Section is to be a success, however, it is incumbent on all member companies to insist upon the personnel of their accounting organization taking an interest in its affairs. All of us experience more or less the same difficulties due to pressure, but if the work of the Sec