In regard to payment of freight bills, I would like to offer another suggestion. Now that we have the railroads back in our own hands, competition is coming into effect, and I doubt if we will have much longer to bow down to the arbitrary manner of payment of bills. THE CHAIRMAN: Mr. Jones, may I ask you how that matter of rebate on freight came up? Was it on notice from the railroad company? MR. JONES: No, sir; by looking into the tariffs. In one case we obtained about $500 rebate on the first month's shipment of coal, and consequently we are very anxious to go back over the last two years at least. You will have to study the tariff. It is nothing more than analyzing your tariff rate on coal. THE CHAIRMAN: That is practically in effect an audit of the tariff rates. MR. JONES: That is all it amounts to. THE CHAIRMAN: Is there any further discussion on this paper? O. E. HOWLAND: Regarding that rebate, in our city we found there is a firm that specializes on rebate cases. We let them make use of our freight bills on a fifty per cent basis. On a year's check we received a little over $100 as our share of the rebate on freight. MR. HEYDECKE: I want to outline briefly the method of "accounting for coal" with the Public Service Electric Company. Our rail shipments average probably between 80 and 90 per cent, balance by boat. All Rail Shipments. Carloads of coal received at our stations are reported daily by our engineers, an individual "Report of Coal Received" report being made out for each car. These reports are approved by the engineers and show the name of the shipper, the car initial and number and the weight. The weight is taken from the freight bills, which are passed, approved and sent to the general auditor daily. Upon receipt of these freight bills at the general office they are checked as to extensions, rates, classification and approvals and passed for entry and payment. Upon receipt of "Reports of Coal Received" at the General Office they are filed in numerical order by car numbers. Shippers render bills daily for each carload. shipped. These bills are approved by the purchasing agent and sent to the general auditor and, upon receipt at the general office, are filed in numerical order by car numbers. The bill file is checked daily against the "Reports of Coal Received" file, the "Reports of Coal Received" being attached to the bills after checking weights and approvals. The bills are then checked as to extensions, classified to the fuel stock account of the station reporting receipt of the coal and passed for entry in the records, after which they are paid by voucher check. A separate column has been provided in the invoice register for bills charged to fuel stock, and a separate classification book is kept in which coal bills and freight bills are posted. The fuel stock classification book contains an individual account for each station, and the sheets are ruled so that coal bills are posted separately from freight bills. In posting coal bills the car numbers, weights, prices and amounts are recorded, and in posting freight bills the car numbers, rates and amounts are recorded. After the bills have been paid, the voucher numbers are posted in the fuel stock classification book against the bills covered by the voucher checks. Tidewater Shipments Public Service Electric Company, not being a member of the new Tidewater Coal Exchange, Inc., receives coal shipped to Tidewater points for its own account. Coal shipped in this manner is dumped into barges for trans-shipment to our stations. The railroad company's agent at the piers issues a report showing the numbers and weights of the cars from which coal has been loaded into each barge. These reports also show the total tonnage dumped into the barge and the station for which the barge. is bound. Upon receipt of these reports at the general office they are checked against the bill file and the bills are checked as to weights. In preparing the bills for entry the name of the barge and the date upon which the cars were dumped are recorded on the face of the bills, after which they are classified and passed for entry and payment. The dumping reports are filed in a binder and kept in chronological order for easy reference. An individual report of "Coal Received" is made out by the engineer for each barge received. and sent to the general auditor daily. This report is attached to the bill covering lighterage on the barge. Freight bills on Tidewater shipments are prepaid, the bills being mailed to our general auditor by the scale agents of the railroad. Collection of these bills is made by sight draft and, for that reason, we have found it necessary to post the bills to a suspense account, which is handled as follows: All Tidewater freight bills are posted to an account known as "Freight Paid in Advance." The cars accounted for in the current month are transferred to "Fuel Stock Account" of the station receiving the coal. The balance left in the account represents freight prepaid on cars not dumped at the piers at the end of the fiscal month. When these cars are reported dumped at the piers the "Fuel Stock Account" of the station receiving the coal is charged and the "Freight Paid in Advance" account is credited by means of a journal entry. I might also add that about February 1, 1918, we put in our present coal differential rate, applying to power customers only, on other than the base rate. The coal differential is based on coal at a basic rate of $5.25 gross ton alongside or at siding of generating stations, and for each increase over that amount of 25 cents we charge .028 of a cent per kilowatt-hour consumed on power bills for the month. THE CHAIRMAN: How do you arrive at that .028 of a cent, Mr. Heydecke? What is the basis of arriving at that particular percentage? MR. HEYDECKE: I am afraid I cannot tell you offhand, Mr. Chairman. THE CHAIRMAN: I was curious to know, because we have another method of calculation. That was all. Is there any further discussion of this paper,? MR. HOWLAND: This instance occurred to me, during the high price of coal, the stock of coal on hand was naturally made up of higher price coal. During the lower market of coal we received coal at a much less price. In some instances in power contracts we have a coal clause basis, but with each of those contracts we place an interpretation which goes with the contract that the price of coal f, o. b. siding is interpreted to mean price of coal received plus that which is in storage. We find all of our customers are very glad to receive that interpretation, and it goes right along with the contract. THE CHAIRMAN: Is there any further discussion? This has been very interesting, showing the experiences of those in different parts of the country. Do you care to make any further comment, Mr. Edwards? MR. EDWARDS: I think not, Mr. Chairman. THE CHAIRMAN; If not, we will pass on to the next order of business, which is the report of the Customers' Records and Billing Methods Committee, by Mr. J. D. Jacobus, Detroit Edison Company. Report of Customers' Records and Billing Methods Committee The activities of this Committee have extended over a period of five years, it being organized in 1916. During this time we have covered the subjects allocated to us quite thoroughly, beginning with a questionnaire, which was sent out to member companies requesting information as to the different methods of billing, reading meters, etc. Subsequent reports have dealt more directly with certain subjects, such as billing other than monthly, machine billing and balance sheets. This year's report covers methods in use by various companies in reading meters, prevention of curbstone readings, reading of skip meters and methods used to insure billing of all meters in service. This Committee is of the opinion that a close study should be made to insure member companies having a system whereby all meters in service are billed, as it is an easy matter for a customer's record to become lost if not properly safeguarded. The Committee wishes to call attention to an article entitled "The Good-Will Value of an Efficient Accounting Organization," by Isaac S. Hall, of Chas. H. Tenney & Company, Boston, Mass. This article was published in the November issue of the N.E.L.A. Bulletin. A brief description, with illustrations, is shown of a machine billing system in use by one of our southern companies which is very interesting and worthy of study, as it seems to eliminate much of the red tape now used in the billing departments of member companies. The machine billing and ledger posting system in use by the Consumers Power Company, Grand Rapids, Michigan, which is included in our report, brings out some very interesting points and describes a system that is suitable to the smaller mer companies as well as the large companies. Tying in of Meter Reading Routes with The Philadelphia Electric Company "The Company is divided into districts, each district into routes, any given route being one day's work for all meter readers. Routes in turn are divided into trips, one trip being the equivalent of one day's work for one meter reader. "The meter sheets are arranged in the reading binders geographically-alphabetically as to street name and numerically as to street number; this applies to the name streets. In cases of numbered streets the sheets are arranged numerically as to street and street number. The arrangement of the sheets in the reading binders is numbered streets numerically first and name streets follow alphabetically. The meter reader's instructions, trip map, filing order and reading order are filed in the front of the reading binder. "The consumers' ledger sheets are arranged in exactly the same order as the meter reading sheets, except that one ledger binder may comprise two or more reading trips, depending on the size or number of meters in each trip. Each ledger clerk is supplied with district and trip maps; in addition to this there is a geographical index. This index will show the district route and trip for any given street. For example, a certain street running the entire length of the city and having hundreds of consumers thereon and covering several districts, would be indexed on one card. "Experience has proved that since the geographical arrangement of the ledgers has been in use the ledger clerks seldom refer to the index, using the maps instead. In most cases the ledger clerks have familiarized themselves with the geographical outlay of the districts on which they are working, and do not use either map or index in referring to the accounts. Method of Reading Skips "The meter reading schedule covers twenty routes a month. Regular reading days for routes are from Monday to Friday, inclusive, of each week, thus leaving Saturday, which is a half-day, for skips and special readings. It is customary in cases of skips on the regular reading day, to send out the next day to secure the reading. In this way most of the skips are procured. If, on the second call, the reader finds the places again closed, he endeavors to secure all the information he can by inquiring of the consumers on either side of the premises. In this way it is often found that the place is most always closed during the day and there are only special times when the readings can be taken. In such cases as this there is a return postal card left at the place, on which the consumer is requested to notify the Company when it will be convenient to have reading taken. "In the case where reader is unable to obtain reading on the second call, he tries again on Saturday, and where he is again unsuccessful, and the consumers' bills are unusually small, the reading is allowed to go over to the next month's regular reading date. There are, however, usually three to five attempts made before reading is carried over to the next month. Prevention of Curbstone Readings "In every case where it is found necessary to take a check reading a record is made of this check reading where it is found that the original reading was incorrect. These check readings are listed according to meter readers, and wherever a number of incorrect readings or errors appear against any particular reader the following system is used: "On the next trip on which the reader is going to work there are inserted what is known as 'dummy sheets,' being cases where the meters have been removed, although meter reading sheets does not show this. This practice is followed out over a period of several days to see what report the reader turns in on the above-mentioned cases. "Oftentimes there are complaints received from consumers upon receipt of bill, stating that the bill must be incorrect, as it was impossible for the meter reader to read the meter on the date as stated on the bill. In cases of this kind it often happens that the meter is so located that the reader is able to read the meter through a window. In all such cases he is supposed to make a notation of this kind on the reading sheets. If in the above-mentioned complaint there is no such notation on the reading sheet, another reader is sent out to take a check reading of that meter and several other meters in the immediate vicinity, as it is hardly possible that the reader would curb the reading at one place and go next door and actually take a reading." Meter Control The New York Edison Company "As soon as the Meter Department receives a connection order for a new installation, or an order for the replacing of an old meter, they issue a requisition upon the storeroom for a meter. A copy of this requisition (which is known as a Meter Charge Slip serially numbered for each month) giving record number, name, premises, meter number, amp, volts, wire, type, constant, location of meter, etc., is forwarded in triplicate to the Bureau of Receipts where, upon receipt of all such Meter Charge Slips received for the day are listed. "Clerk in charge of Meter Control then assigns Ledger and Folio numbers, attaches contract to original Charge Slip after having compared record number, name and address, and forwards these records to a typist, who issues a Ledger Sheet and Meter Record Reading Sheet, which, after having been compared to assure the correctness of all entries, also carefully comparing given constant with constant schedule, is returned to Meter Control Clerk, who files Ledger Sheet in its respective Ledger, and Meter Reading Sheets in assigned Meter Reading Binder. "Original Meter Charge Slip is then forwarded to Addressograph Clerk, who prepares addressograph stencil of new customer and files such stencil in geographical order in cabinet. "Duplicate Meter Charge Slip has in the meantime been forwarded to clerk in charge of listing meters in and out of service, who lists them under their respective sizes, type, etc. "From this list we obtain the total number of meters in service on customers' premises, sub-divided as to sizes, etc. All meters installed are charged, returned lost or destroyed meters are credited on this list. "Meter Charge Slip is checked against daily moving of meter sheet, which record is prepared by the Meter E LECTRIC AA KENDALL, 1051 E COLLEGE STREET, CITY #7892 TOTAL $ B (No discount allowed if previous bill remains unpaid. Minimum Monthly Bill $1.00) When Paying This Bill Please Send It Along to Be Receipted (No discount allowed if previous bill remains unpaid. Minimum Monthly Bill $1.00) When Paying This Bill Please Send It Along to Be Receipted L Department daily, showing all meters installed or removed during given day. This is a most valuable check, as it calls immediate attention to the loss or non-receipt of any meter charge slip. In addition, meter charge slips are serially numbered (as mentioned before) and numerically assorted at end of month. "A further transcript of meters is also kept for each meter record binder, the total number of meters shown by this record must balance with total number of meters shown in Ledger Controlling this binder at end of each month. "Triplicate order has also in the meantime been forwarded to Addressograph Clerk, who prepares a separate stencil showing premises, and which stencil is forwarded to the Meter and Test Department. "Check is made at the end of every month with Storeroom records of meters in service at the beginning of the month, number of meters installed during the month, meters returned and credited during the month, and total number of meters in service at end of month. "A meter credit slip is issued by storeroom upon the return of a meter from customer's premises, also for lost and destroyed meter after careful investigation, and forwarded to the Bureau of Receipts. "This record is also checked against daily moving of meter sheet and listed on record of meters in service. This meter credit slip authorizes the removal of meter reading record from binder, credit is also posted on ledger and, if account is closed and paid up, ledger sheet is removed. "Two days before the scheduled day for reading any trip, meter record sheet in respective trip are prepared by clerks, who fill in the reading date (rubber dating stamp) upon Meter Record Sheet, and see that all meter record sheets are in order and proper condition, and that the number of meter record sheets in each binder balance with the number of meters shown in meter control book for the respective meter record binder. "Upon return of meter reading binder by Indexer, the number of meter records returned is compared with number sent out." Monthly Bills-Elec Bookkeeping Machine Installation Business-Gas and Electricity. Forms-Monthly Bills-Gas; tricity. Equipment-No. 3 14-inch Bookkeeping Machine equipped with a 6-inch Tally Attachment. Conditions to Be Met-Bills pen written by two employes. Extra employe frequently required. Copying from meter reader's book the bill was written and computed mentally. Figures again written on stub. The consumption was then written on the meter reader's book, opposite the meter reading, and a total taken on a listing machine of the consumption and net amount of all bills. This listing was required to secure a total of the consumption and total of sales. Method of Handling-Bills in duplicate are addressed on an addressing machine: No. 1 register accumulates total of consumption; No. 2 register cross adds the consumption and amount; No. 3 register accumulates net amount of bills. The tally roll is used as an abstract and is checked against meter reader's book to insure accuracy. Original bill mailed to customer and duplicate filed in cashier's department. As bills are paid they are stamped and filed away. Bills not paid, by the discount date, are listed and turned over to collectors. Results Obtained-One employe doing the work formerly requiring two. Eliminates the listing of consumption and net amount for the controls. Machine Billing and Ledger Posting System Consumers Power Company "When the officials of the Consumers Power Company concluded to try out a machine billing and ledger posting system, they found that, by reason of their operating through a number of district offices ranging from a district with about 2300 consumers to one with about 23,000, with slightly different rates prevailing, instead of caring for approximately 100,000 consumers in one district, with one rate and under one accounting division, that certain details had to receive careful consideration, i. e., would a system applicable to the needs of Grand Rapids, with about 23,000 consumers, be suitable for one with about 2300 consumers? With this in mind they studied a number of the successful systems in operation, resulting in the adoption of Billing and Posting Machines in conjunction with which are used Computing Charts and Bill Stamps. "The Grand Rapids district was chosen to work out the details and introduce the new system, and it is the intent of this paper to describe the work carried on there; but before going into the details of the specific system under consideration, it might be in order to briefly describe the procedure leading up to the billing of a consumer's account. "When a person applies for service an 'Application for Service' is signed by the consumer and passed to the credit department, which approves it as to credit risk or secures a deposit. A 'Meter Installation Order' is issued and turned over to the service inspection department, whose duty it is to locate the service entrance, examine meter board wiring, determine size and type of meter necessary, and fix point from which service is to be run. The meter information so obtained is entered on the Meter Installation order, and a 'Line, Service, Complaint and Sales Order' is issued to install the service. These two orders are clipped together and sent to the service and meter department for attention. "The orders referred to above are issued in triplicate in the Order Department, two copies being set out as working instructions, and the third copy inserted in a tickler file to watch for the prompt return of the copies sent out, and to furnish information on uncompleted work. "Upon the return of completed orders to the order department, the original of the meter installation order is passed to the addressograph department, where a plate containing Name, Street Address, Account Number and Billing Data is made and meter read slip and ledger sheet printed. See Figs. 47, 48 and 49. "The addressograph plate is filed in its proper location for billing and the meter read slip and ledger sheet with the original meter installation order attached passed to the ledger department, where the meter data is entered onto the meter read slip and ledger sheet and the installation order filed. "With the meter read slip and ledger sheet now opened and in proper positions in reading book and consumers' ledger, we come to the system involved in the use of billing and posting machines and in connection with which I shall go into more detail. "The system requires that meter routes, addressograph plates, ledgers and bills be in exactly the same order, therefore, the first move was to bring the meter index department, which is also under the supervision of the chief clerk, in alignment with the general system including the billing, posting, bill distributing, collecting and cashier department. Meter Routing and Reading "Meter routes are considered first in the arrangement, and no restrictions are placed as to routing except that all accounts on any street must be together and run in numerical order from one up. Each street is numbered in route order, the first street read being number one, the second read number two, and so on. This same number constitutes our ledger number, details of which will be explained under ledger indexing. "As far as possible, each route contains 200 read slips and, in most instances, several streets. Nearly all readers find short cuts in a route and, as no street can be broken into by another, a scheme was worked out to cover such cases. As an illustration, Route No. 1 is composed primarily of Division Avenue with |