>1 _ Southern Branch of the University of California Los Angeles Form L-l 4°)51 M45s This book is DUE on the last date stamped below. Street Railway Accounting A Manual of Operating Practice for Electric Railways By IRVILLE AUGUSTUS MAY, C.PA. Vice-President, A)ncrican Electric Railway Account- ants Association ; Comptroller, The Connecticut Com- pany; Auditor, Berkshire Street Railway Company. NEW YORK THE RONALD PRESS COMPANY 1917 400&3 Copyright, 1917, by The Ronald Press Company William G. Hewitt Press, Brooklyn, Printers J. F. Tanley Co., New York, Binders PREFACE The developments and changes in street railway account- 3f ing during recent years have been many and varied. Every street railway company has had the problem of devising a system of accounting which should conform in principle to {j the stipulations of the public service bodies and the methods f* approved by good roads, and which should also fit in with y the requirements of local conditions. I The promulgation by the Interstate Commerce Commis- ^ sion of its System of Uniform Accounts for Electric Railways ^ has helped to standardize street railway accounting, so that it xf now appears probable that changes will be less marked in the 1 future. The Commission's system, however, deals merely q with the classification of accounts, giving no description of ^ the procedure required in applying the classification to actual (•<, conditions. The working methods followed in different com- panies, even where local conditions are similar, still show wide diversity. A book of street railway accounting practice should be useful alike for purposes of suggestion and of comparison. The present volume is not a discussion of the theory of street railway accounting. Nor yet is it an encyclopedia of the various methods and plans of organizations throughout the country. Perhaps conditions are not yet ready for a book of either sort ; the materials are not yet available. This work is rather an outline of the working methods developed and ac- tually used by the accounting departments of certain large companies, which are operated in accordance with the Inter- state Commerce Commission regulations. It is hoped that the methods here described may be of interest not only to ac- countants, but also to students of the industry who desire a body of practical data based on long experience in the business. iii j v PREFACE To treat fully all phases of street railway accounting, even as thus circumscribed, would be impossible within the limits of a single book. Attention is centered, accordingly, upon those points which have been found in the writer's experience to be most important, most peculiar to the business, or most troublesome in actual practice. In working out a system of accounts for any company, local conditions must always be taken into consideration. The industry itself, moreover, is always developing, and in order to keep up with new situations accounting systems must be remodeled from time to time. It is evident that the meth- ods here outlined cannot be applied indiscriminately every- where. Inasmuch, however, as the procedure here described represents to a large degree a working combination of meth- ods found useful on widely differing properties, many points therein are of general application. The author well knows what it is to struggle along with- out guide or assistance in devising a system of accounts for a street railway company of complex organization. Perhaps the appearance of this book will lead to further development and standardizing of the subject. If so, the time spent in the preparation of the present volume will be amply rewarded. Irville Augustus May. New Haven, Conn., September 15, 19 17. CONTENTS Part I — The Organization of the Accounting Department Chapter Page I The Company i Peculiarities of Street Railway Accounting Interstate Commerce Commission Methods Express and Freight Service Accounting for Cash Fares Departmental and Divisional Organization Departments of a Street Railway Company Duties of Department Heads Divisional Organization Street Railway Forms Large Amount of Expert Supervision Needed Chart I. Organization of The Wessex Company II The Accounting Department 12 Two Branches of the Accounting Department's Work "Outside" Supervision "Inside" Work Accounting Department Staff Advantages and Disadvantages of Divisional Organi- zation The Main Office Duties of the Comptroller Duties of Comptroller's Staff Chart II. Organization of Accounting Department Part II — Accounting Work Mainly Outside the Comptroller's Office III Passenger Service — Division Cashier's Routine . 22 Source of Street Railway Income Accounting in Division Offices v j CONTENTS Chapter Page Conductors' Day Cards Conductor's Cash Slip Receiver's Receipt Conductors' Drop-Safe Receiver's Handling of Conductors' Cash Checking Contents of Drop-Safes Register and Fare-Box Readings Division Cashier's Routine 1. Conductor's Cash 2. Sorting Day Cards, Cash Slips, etc. 3. Counting Tickets and Passes 4. Compiling Report of Daily Passenger Earnings 5. Verification of Day Card Record Reconciliation of Register Reports Repairing Car Registers Fare-Box Reports and Reconciliation 6. Checking Passenger Earnings Report by Day Cards 7. Correcting Day Cards 8. Reporting Passenger Earnings by Routes 9. Checking Transfers Forms 1. Conductor's Day Card 2. Conductor's Day Card 3. Conductor's Cash Slip 4. Ticket Envelope 5. Receiver's Receipt 6. Receiver's Tally Sheet 7. Cashier's Daily Report of Cash 8. Daily Cash Report from Bank to Treasurer 9. Tally Sheet for Conductors' Bags 10. List of Conductors' Badge Numbers 11. Inspector's Register Reading 12. Register Reading Report 13. Fare-Box and Register Report 14. Register Reading Report for Foreign Car 15. Cashier's Daily Report of Tickets 16. Division Cashier's Report of Daily Passenger Earnings 17. Reconciliation of Register Reports 18. Register Repair Report — Daily CONTENTS vii Chapter Page IV Passenger Service — Special Duties of Division Cashier 47 Relation of Routine Work and Special Duties Collecting Conductors' "Shorts" Handling of Doubtful Cases School Children's Tickets Chartered Cars Instructions to Division Manager Manager's Procedure — "Foreign" Cars Payment for Chartered Cars Instructions to Division Cashier Cashier's Report of Chartered Cars The Originating Division Distribution of Charge The Connecting Divisions Transporting Packages on Passenger Cars Report of Package Labels Transporting Packages — Foreign Divisions Cashier's Record of Packages Transporting Dogs Employees' Deposits for Working Tools When Deposit Receipt Is Lost Employees' Lunch Vouchers Record of Lunch Vouchers Forms 19. Short and Over List 20. Application for Pupil's Ticket 21. Chartered Car Order 22. Package Labels 23. Package Labels Sold 24. Employee's Deposit Slip 25. Employee's Application for Duplicate Deposit Receipt 26. Lunch Voucher and Stub 27. Lunch Voucher Report V Passenger Service — Reports and Recapitulations . 71 Passenger Business Cash Book Working Fund Cash Book Emergency Cases Working Fund Statement The Period Report of Business Vlll Chapter CONTENTS Page Division Cashier's Balance Sheet Work in the Comptroller's Office Counting the Tickets and Passes Register and Fare-Box Reports Checking Daily Passenger Earnings Checking Daily Reports of Cash Checking Period Report of Ticket Sales and Miscella- neous Business Checking Cashiers' Balance Sheets Detail Books Prepared in Comptroller's Office 1. Report of Tickets 2. Summary of Passenger Business 3. Division Cashier's Ledger 4. Cash Summary Book Final Record of Passenger Business Preparation of Statements Distribution of Work Forms 28. Period Report of Business 29. Division Cashier's Balance Sheet 30. Monthly Report of Tickets 31. Treasurer's Report of Cashier's Remittance 32. Monthly Summary of Passenger Business by Divisions VI Express and Freight Service — Local Office Routine 93 Organization of Express and Freight Service Classification of Express and Freight Shipments Outgoing Merchandise — Bill of Lading Incoming Merchandise — Delivering Shipments Refused Shipments Money Deposited Daily in Bank Way-Billing Freight and Express C.O.D. Packages C.O.D. Register Collecting for C.O.D. Shipments "Over, Short, and Damaged" Reports Investigating O.S.D. Reports Way-Bills to be Abstracted Issuing Agent's Corrections Tracers CONTENTS IX Chapter Page Forms 33. Bill of Lading — Small 34. Bill of Lading — Large 35. Special Bill of Lading 36. Bill of Lading for Valuables 37. Freight Notice Post-card 38. Freight Receipt 39. Driver's Sheet 40. Receipt for Money 41. Way-Bill and Delivery Sheet 42. Express Label 43. C.O.D. Way-Bill and Delivery Sheet 44. C.O.D. Label 45. C.O.D. Register 46. Over, Short, and Damaged Report 47. Over, Short, and Damaged Record 48. Agent's Correction of Way-Bill 49. Tracer VII Express and Freight Service — Local Office Sum- maries and Special Work 115 Settling Sheets Posting Settling Sheets to Ledger Issuing Bills and Collecting Credit to Shippers Report of Unpaid Bills Extending and Withdrawing Credit Abstracting Way-Bills Agents' Period Balance Sheets Special Duties of Local Agents — Advance Charges Settling Comptroller's Corrections Foreign Company Shipments — Outward Way-Bills Foreign Company Shipments — Outward Abstracts Foreign Company Shipments — Inward Abstracts Forms 50. Outward Way-Bill Settling Sheet 51. Inward Way-Bill Settling Sheet 52. Bill for Outward Shipment 53. Bill for Inward Shipment 54. Unpaid Credit Accounts 55. Abstract of Way-Bills Forwarded Chapter CONTENTS Page 56. Abstract of Way-Bills Received 57. Agent's Balance Sheet VIII Express and Freight Service — Recapitulations . . 130 Work in Comptroller's Office Checking Way-Bills and Abstracts Checking Unreported Way-Bills Way-Bill Transit Book Balance Sheet Corrections The Correction Ledger Checking Agents' Remittances Compiling Earnings — By Stations Compiling Earnings — By Divisions Express Agents' Ledger Preparing Entries for General Journals Collection of Bills Claims for Losses, Damages, and Overcharges Registering Claims Investigating Claims Adjustment of Claims Filing Report Forms 58. Correction Sheet 59. Bank Report of Agent's Remittance 60. Express Claim Register 61. Express Claim Post-Card IX Auxiliary Operations 144 Incidental Revenue from Transportation Services Accounting for Outside Enterprises Interstate Commerce Commission System Sale of Electricity, Water, or Gas Accounting for Meters, Arc Lamps, and Transformers Meter Deposits — Records for Main and Division Of- fices Receipts for Meter Deposits Cancellation of Charges Against Consumers Refunds to Consumers Summary Cash Book Returning Overpayments Parks and Other Attractions CONTENTS XI Chapter Page Forms 62. Meter Deposit Receipt 63. Acknowledgment of Money X The Pay-Rolls — Preparation .... . . . 157 Different Classes of Employees Pay-Roll Procedure Classification by Occupation Approving Pay-Rolls Computing Time Conductors' and Motormen's Time Extra Time Time of Express and Freight Motormen Time Allowed for Other Service Adjustment of Disputed Time Varieties of Pay-Rolls Approval of Time Slips for Outside Work Weekly Wage Table Forms 64. Daily Time Card 65. Time Clock Ticket — Shops 66. Time Clock Ticket— Shops (Night Shift) 67. Daily Check List — Track Employees 68. Time Report — Superior Employees 69. Motorman's Time Slip 70. Report of Extra Cars Run 71. Miscellaneous Time Allowed 72. Express Motorman's Day Card 73. Non-Revenue Car Mileage 74. Adjustment of Time 75. Pay-Roll— General 76. Pay-Roll— Officers 77. Pay-Roll — Conductors and Motormen 78. Pay-Roll — Conductors and Motormen XI The Pay-Rolls — Special Procedure and Checking . 178 Increases and Changes When Sliding Scale Is in Effect When Force Is Increased Resignations and Promotions Additional Pay-Roll Suggestions Xll CONTENTS Chapter Page Pay-Roll Proof Sheet Prompt Notice of Errors to Comptroller Checking Pay-Roils in Comptroller's Office Payment of Employees Paying Illiterate Employees Unclaimed Wages Payment of Wages Not Claimed at Regular Time Distribution of Pay-Rolls Final Checking of Pay-Roll Careful Record of "Authorities" Writing Off Unclaimed Wages Final Record and Journal Entries Forms 79. Increase of Pay 80. Increase of Force 81. Change of Pay-Roll 82. Pay-Roll Proof Sheet 83. Assignment of Wages 84. Certificate to Pay-Rolls 85. Record of Unpaid Employees 86. Weekly Distribution of Pay-Rolls 87. Distribution of Pay-Rolls 88. Index Card of Employees 89. Distribution of Pay-Rolls XII The Purchasing Department ....... 196 Volume Large but Procedure Simple Making the Requisition Buying Invoices Following Up Back Orders Forms 90. Requisition on Purchasing Agent 91. Order Blank XIII The Stores Department — Receipt and Issue of Material 201 Relation to Accounting Department Routine in Stores Department Requisitions Receipt of Material CONTENTS x iii Chapter Page Checking with Shipping Memorandums Stock Cards and Invoices Rule for Charging Material Expediting Discount Bills When Invoice Is Lacking Monthly Report of Invoices Passed Issue Slips Final Disposition of Issue Slips Issuing Material to Other Divisions Treatment of Manifests Monthly Reports of Material Issued Shop Orders Issuing Material to Outsiders Forms 92. Stock Card 93. Daily Report of Material Received 94. Report of Uninvoiced Material 95. Invoices Passed During Month 96. Foreman's Requisition 97. Manifest 98. Classification Sheet of Material Issued 99. Report of Material Issued from Storeroom 100. Detail Report of Material Issued from Store- room 101. Shop Order 102. Charges for Material Issued to Outside Parties XIV The Stores Department — Care of Stock and Inventories 219 Care of Material in Stock Care of Material Outside the Storeroom Freight Bills Stamped by Stores Keepers When to Charge Transportation, Etc., to General Stores Report of Scrap Accumulated Inventories Forms 103. Scrap Credit Ticket 104. Division Report of Scrap 105. Inventory Form xiv CONTENTS Chapter Page XV Additions and Betterments 229 Necessary Records Authorizations Definite Limitations Authorization Materiai Pay-Roil Charges Preparation of Authorization Forms Treatment of Salvage Material Leased Properties Notices to Interested Officials Distribution of Charges Authorization Ledger Authorization Ledger Transfer Books Additions and Betterments Ledgers Authorization Index Charges Against Other Companies Completed Authorizations Belated Bills — When Chargeable to Authorization New Construction — Need of Careful Records Forms 106. Authorization Blank 107. Notice of Approval of Authorization 108. Authorization Ledger XVI Miscellaneous Work in Other Departments . . 245 The Operating Department — Division Managers Monthly Report of Coal Consumption Power Station Output Monthly Report of Lubricants Used Additional Operating Department Forms The Legal Department — Claim Agents' Accounts Claim Agents' Working Fund Claim Agent's Cash Book Claim Agent's Accounts Checked by Traveling Auditors Additional Legal Forms Engineering Departments — Power and Equipment Additional Engineering Forms Forms 109. Monthly Fuel Report no. Power Station Output in. Monthly Report of Oils and Grease Consumed 112. Permit for Attachments CONTENTS xv Part III — Accounting Work Mainly Inside the Comptroller's Office Chapter Page XVII The General Books Difference between General and Detail Books The General Journal Journal and Ledger Entries General Trial Balance Sheets Forms 113. Journal Entry Form XVIII Detail Ledgers of Earnings, Expenses, Supplies, ETC Book Supplementary to General Books General Operating, Earnings, and Expense Ledger Handling of Expense Ledger Correction of Errors Power Station Sub-Expense Ledger Accounts Park Earnings and Expense Sub-Ledger Fuel Inventory Sub-Ledger Corrections and Adjustments in Fuel Inventory Sub- Ledger Adjustments of Coal Measurements Reported Statement of Cost of Coal General Stores Sub-Ledger General Stores Reconciliation Reports Stores Issued General Stores Statement Scrap Account Report of Scrap Accumulated Notice of Balances to Stores Keepers Scrap Expense Account Auto Expense Sub-Ledger Replaced Machinery Stock Account Property and Equipment Withdrawal Account Other Accounts and Records Fire Insurance Records Tax Records Interest and Deposit Accounts Reserves Accident and Damage Reserve Depreciation Reserves 259 265 XVI CONTENTS Chapter Page Sinking Funds Leading Accountants on Sinking Fund Problems Forms 114. General Operating Earnings and Expense Ledger 115. Monthly Scrap Report — Comptroller's Office 116. Motor Car Daily Report 117. Motor Car Monthly Report 118. Motor Car Monthly Report— Comptroller XIX Accounts Receivable and Collections .... 291 Making Out Bills Forms for Bills Approval of Bills Bills Collectible Register Unpaid Bills Collecting Bills Bills for Cutting Wires Bills for Park Rentals, etc. Handling Bankrupt Accounts Sight Drafts to be Handled at Once Sundry Sales — Procedure of Outside Offices Checking of Sundry Sales Corrected Bills Forms 119. Bill Collectible Form 120. Bills Collectible Register 121. List of Uncollected Bills 122. Bills Collectible Index or Ledger 123. Rent Bill XX Invoices and Voucher Accounts Payable .... 302 Approving Bills for Payment Voucher Checks Frequency of Vouchering Voucher Register Checking Shippers' Statements Redeeming Cancelled Ticket Books Forms 124. Voucher Check 125. Vouchers Payable Register 126. List of Oustanding Vouchers Payable CONTENTS xvn ~ Page Chapter XXI Statements 3 10 Utility of Statements Daily Statements Weekly Statements Monthly Statements Monthly Income Report Relation to Interstate Commerce Commission Accounts The General Balance Sheet Monthly Operating Earnings and Expense Reports Monthly General Stores Receipts and Disbursements Earnings by Routes Statement Earnings and Expense of Parks .Power Station Cost Statements Accident and Casualty Reports Authorization Statement Maintenance of Equipment Statement Comparison of Maintenance of Way and Structures Cost of Oil Used Statement Miscellaneous Monthly Statements Yearly Statements and Reports Public Service Commission Statements Statements to Officials and Stockholders of the Road Forms 127. Daily Report of Passenger Earnings 128. Daily Receipts and Disbursements 129. Monthly Income Account 130. General Balance Sheet 131. Earnings and Expenses 132. Operating Expenses 133. Earnings and Expenses 134. Operating Expenses 135. Express Earnings and Expenses 136. General Stores Receipts and Disbursements 137. Approximate Earnings by Routes 138. Park Earnings and Expenses 139. Power Station Expenses 140. Monthly Accident Report 141. Authorization Statement 142. Comparison of Maintenance of Equipment Ex- penses 143. Comparison of Maintenance of Way and Struc- tures xviii CONTENTS „ Page Chapter XXII Details of Departmental Management . . . . 33 6 Filing Systems Method of Destroying Old Records Labor-Saving Devices Economies Fidelity Insurance Working Library Forms 144. Certificate of Destruction of Records XX1J 1 The Statistician's Work 344 New and Important Work Conservative Methods of Presenting Statistics Extension of -Statistician's Work Shop and Cost Records Utility of Shop and Cost Records Car Mileage Method of Recording Car Mileage Car Hours Inspection Reports Graphic Statistics for Officers Forms 145. Report of Pressing Off Wheels 146. Car Wheel Record 147. Axle Record 148. Report of Wheels and Axles 149. Monthly Report — Wheels and Axles 150. Record of Individual Car Mileage 151. Daily Individual Car Mileage Report 152. Mileage Record for Car 153. Report of Changes in Running Time 154. Record of Cars for Inspection XXIV Audits 358 Checking of Processes Work of the Traveling Auditors List of Inquiries Auditor's Report Instructions for Auditor? Supervision of Inventories CONTENTS x i x Chapter Page Inventory Procedure Need for Caution and Accuracy Treasury Department Audits Inside Office Audits Further Auditing Devices Forms 155. Requisition for Tickets 156. Ticket Invoice 157. Outside Office Ticket Requisition 158. Ticket Stock Record Part IV — Additional Forms XXV Forms and Their Use 377 The Significance of Forms Emphasis Here Placed on Arrangement of Material Two Varieties of Forms XXVI Additional Forms Relating to Passenger and Ex- press Service 380 159. Application for Position 160. Order to Photographer 161. Conductor's or Motorman's Instruction Card 162. Conductor's or Motorman's Instruction Card 163. Card List of Conductors and Motormen 164. Inspector's Report 165. Starter's Report 166. Daily Telephone Report of Cars 167. Daily Record of Telephone 168. Daily Dispatcher's Report 169. Lost Article Tag 170. Examination of Conductors — General 171. Examination — Automatic Signals 172. Examination — Hand Thrown Signals 173. Emergency Station Report 174. Report of Line Superintendent XXVII Additional Forms Relating to Maintenance and Equipment 398 Shop and Car House Forms 175. Fire Inspection Report 176. Sprinkler Report 177. Fire Extinguisher Inspection Tag XX Chapter XXVIII CONTENTS Page 178. Card Record of Cars 179. Report of Car Inspection 180. Report of Car Inspection 181. Defect Card 182. Report of Flat Wheel 183. Car Replacement Report 184. Defective Armature Tag 185. Armature Tag 186. Armature Repair Record 187. Daily Report of Cars Removed from Service 188. Summary of Cars Removed from Service Engineering Fo*ims — Power and Equipment 189. Daily Log — Power Station 190. Daily Log— Substation 191. Monthly Report from Power Station 192. Monthly Report from Power Substation 193. Test Card Engineering Forms — Maintenance of Way 194. Daily Report of Rail and Joint Grinding 195. Daily Report of Work on Track 196. Report of Track Laid 197. Certificate of Ties Accepted Additional Forms Relating to Stores and Acci- dent Claims 421 Stores Forms 198. Request to Rush Material 199. Daily "Short" Report 200. Request to Replenish Stock 201. Request to General Stores Keeper to Ship 202. Stores Keeper's Report of Materials Shipped 203. Bin Card Legal Department Forms — Accident and Claims 204. Accident Report by Car Crew 205. Manager's Report of Accident 206. Daily Accident Report 207. Report of Accident by Witness 208. Report of Accident by Witness 209. Request for Address of Witness of Accident 210. Monthly Record of Claims 2ii. Claim Ledger 212. Card Record of Claims Street Railway Accounting Part I — The Organization of the Accounting Department CHAPTER I THE COMPANY Peculiarities of Street Railway Accounting In large street railway companies of today the account- ing department is almost the only agency, except the president's office, which touches all branches of the organiza- tion. Its duty is not only to "keep the books" in the old sense, but to record accurately and completely the current history of the business, and through clear interpretation enable the management to draw right inferences as to future policy. The primary function of the department is to supervise those parts of the business machine which have to do with receipts and expenditures. From analyzing in its periodical statements, however, the immediate financial results of com- pany activities, it has been led into analysis of the methods and processes which produced those results and to the study of company activities only indirectly connected with the receipt and disbursement of cash. The accounting department of a large modern business is a very different thing from the old-time "bench of book- keepers." In the responsibility and variety of its work it 2 ORGANIZATION OF ACCOUNTING DEPARTMENT ranks among the most important branches of the business. The bookkeeper of the past was a poorly paid and unappre- ciated individual; the modern accountant is regarded by modern business officials as an important and highly valued part of the management. In some ways the accounting work of a street railway differs little from that of any large business concern, but in many ways it is more elaborate and complete. It is generally recognized throughout the country as being the last word in modern accounting, and certainly the methods are more uni- form than in many other kinds of business enterprises. There are some features, however, peculiar to the street railway busi- ness ; the following pages will deal mainly with those features which are individual and characteristic. The street railway business began with the transportation of passengers for short distances, generally within the limits of a single town, for a small fare which was paid usually in cash to conductors. In recent years, since the use of electric power, many of these single town systems have been linked together by interurban lines. It is not rare today for one company to own, or operate through leases, a large number of connected lines over a wide territory. These systems often cross state lines, in which case accounting must be done in accordance with the requirements of the Interstate Com- merce Commission. Interstate Commerce Commission Methods The methods outlined in this book are promulgated with the idea of conforming entirely to the Interstate Commerce Commission's "Uniform System of Accounts for Electric Railways" and many references are made to this system throughout the book. At the same time the writer has kept in mind the small street railway systems lying entirely within one state where short cuts could be made by using fewer THE COMPANY 3 accounts and by consolidating the work in the accountant's office, while at the same time maintaining a good complete modern system of street railway records. Express and Freight Service Recent years, moreover, have developed on many lines an express and freight service, more or less differentiated from the passenger service ; in some cases it has grown to quite large proportions, and this has added complications to the accountant's work. Chapters dealing with this express and freight service are, therefore, included in this book. Accounting for Cash Fares Certain characteristic features of the business which have remained, generally speaking, through all changes, directly and largely affect the organization and detail procedure of the accounting department of street railway companies. In the first place the fare, or charge to the customer, is still reckoned in small units of five cents each on the majority of roads. Some roads now, like steam roads, require through tickets, bought in advance from station agents, but in most cases the fare for a long trip is still paid to the conductor in a series of nickels, collected at zone limits. Since the con- ductors usually collect not tickets, as with steam roads, but cash, the most important task of the accounting department is the close checking up of passenger receipts through direct supervision, so to speak, of every conductor. Departmental and Divisional Organization In the second place the structure of a street railway com- pany presents a peculiar union of departmental and divisional organization, with the divisions more important, compara- tively speaking, than with steam roads. "With the beginning of electric transportation," said Mr. R. R. Bruster, of the 4 ORGANIZATION OF ACCOUNTING DEPARTMENT Electric Railway Journal, in an address before the Central Electric Railway Association, "the general manager as operat- ing head was undoubtedly held responsible for the work of the office as well as the operation of the road, thus exhibiting the divisional type in its pure form for a one-division line. As the size of the company increased, it naturally followed that the manager relieved himself of some of his supervision over details, though still retaining his control over the spe- cialized subdivisions of his former activity. Eventually, how- ever, the divisional powers of the manager came in many cases to concern only the divisions or groups of so-called departments relating to the operation and maintenance of the property, for the accounting department gradually joined the financial or treasury department and sometimes others as a form of specialized work outside the immediate control of the general manager. "The structure of electric railway operation today, either for the single company or for those under holding com- pany control, distinctly warrants divisional control over the operating side of the properties, for it is evident that every approach to a general departmental system for most electric railways would seriously weaken the general manager with- out strengthening the president or executive head. On the other hand, on the non-operating side, it is highly essential that there be a departmental development along functional lines so as to reap the greatest benefit from specialized skill." That is, the street railway began as a single division; developed departments in order to get the "greatest benefit from specialized skill" ; then, as the roads grew larger, again emphasized the division principle. When to the one city sys- tem, the systems of other towns, with the lines connecting them, were added, other divisions were constituted, each with its own division manager who exercised considerable authority. THE COMPANY 5 This peculiarity of structure also affects the work of the accounting department. The records and reports with which the accounting department works are more distinctly division records, than are those of steam roads. Departments of a Street Railway Company The departmental organization of a street railway com- pany follows the usual corporate plan. The immediate source of authority is the board of directors, elected by the stock- holders. The directors elect the officers of the company — the president, who is the active head of the organization, the sec- retary, the treasurer, and a comptroller or auditor who is the head of the accounting department. In addition, there will be a number of other officers, appointed usually by the president, each in charge of a distinct line of work. The accounting system described in this book presupposes the following group of department heads reporting to the president: secretary, treasurer, comptroller, general manager, general traffic manager, purchasing agent, stores keeper, engi- neer in charge of power and equipment, engineer in charge of construction, counsel. The departmental organization may be conveniently represented in the chart on page 6. Duties of Department Heads The secretary is chiefly an officer of the board of direc- tors, and has little connection with the operation of the road. The treasurer, as the custodian of all funds and through whom all disbursements are made according to properly approved vouchers, has, of course, a close relation with the operation of the road. The general manager's work is wholly operative. He has charge of the transportation department and is responsible for the operation of cars, power houses, and shops, and for the maintenance of the property ; he consults with the heads of ORGANIZATION OF ACCOUNTING DEPARTMENT > o X 111 (D CO UJ (0 <: Q! id Id n J_ i 1- o li I o £ z u n u h hr S < N el a n .'.■ < •d 1 1 Ki. I* 0,5 I P. s O u bo u c rt u J5- m S^ n F < £ 2 THE COMPANY 7 other departments, in particular with the engineers and the general traffic agent with regard to matters in which they are concerned. While the title varies with different roads, an officer with such general supervising functions is found on practically all street railways. The general traffic agent is responsible for obtaining busi- ness for the passenger service and for the express and freight service; has charge of advertising, of amusement parks, etc., and has other minor supervising duties. The engineer in charge of power and equipment has immediate charge of the operation and maintenance of power houses, lines, and equipment in consultation with the general manager. The purchasing agent has charge of the purchase of all material and supplies on properly approved requisitions. The stores keeper, with his subordinates, has immediate charge of all material and supplies, issuing them on requisi- tions. The counsel has charge of the legal affairs of the com- pany touching the work of operation especially through the matter of damage claims. The construction engineer has the special duty of prepar- ing or approving plans and specifications for additions and betterments to the property; his work is less immediately connected with the operation of the road than is that of the engineer in charge of power and equipment. The comptroller, as the head of the accounting depart- ment, touches in various ways the work of all the other departments. Theoretically the department heads are coordinate, report to the president and meet with him at times as a cabinet, but are mutually independent. Theoretically also, most of the department organizations extend down from the main office to subordinate officials and employees in the various divisions, 8 ORGANIZATION OF ACCOUNTING DEPARTMENT each of whom is under the supervision of the head of his particular department. In actual practice, however, any street railway company will show more or less overlapping and crossing of depart- ment lines.. In the system here sketched such overlapping shows in the work of the two engineering departments and of the general manager, and in the work of the general man- ager and the general traffic agent. It shows to a remarkable degree in the case of the comptroller, and to a great extent in the organization of the divisions. Divisional Organization A division is a geographical operating unit of the road. It may take in the lines of a single city with its environs, or those of a group of smaller towns with the country lines which connect them. The actual business of transportation is done mainly through the division offices ; the main office plans and directs, and the division offices report back what is done. To a certain extent the division office reproduces the departmental organization of the company. The work of the purchasing agent, the treasurer, and the construction en- gineer, is centralized in the main office; but the operating department, the stores department, the legal department, and the accounting department have permanent representatives in the divisions. The traffic department and the power and equipment department work through division officials attached to the operating department and the accounting department. On a small division, moreover, the functions of two or more departments may occasionally be filled by the same official. Actually, however, the division manager, the representa- tive of the operating department, has a general oversight of all division affairs. All division officials are responsible to the heads of their respective departments for their particular duties, and at the same time to the division manager for what THE COMPANY g may be called team-play. This blend of departmental and divisional organization, which is practically universal with all roads large enough to necessitate divisions, looks more com- plicated, perhaps, than it is. The double responsibility is diffi- cult to describe or to represent, for example in chart form, but it works smoothly enough in practice. It affects very definitely, however, all phases of the work of the accounting department. A feature of the accounting work in any business is that the materials with which it works, the records and papers, are nearly all originated by employees of other departments who are concerned primarily with the operating aspect of their work and only secondarily with its accounting aspect, and who must be induced to observe accurate and substantially uniform accounting methods. The successful administration of any accounting department depends largely therefore on the cooperation of other departments. With the street railway business this cooperation is very important. Nearly all of the company's revenue comes from cash fares paid to a large number of agents or conductors and turned in by them usually once a day, a very different situation, for instance, from that of a store where money can be turned in at once to some kind of receiving system and go direct to the cashier. A very large part of street railway accounting, therefore, has to do with an elaborate system of checking the cash collections made daily by individual con- ductors. The situation is further complicated by the divisional organization of the business. The chance of confusion and error is increased largely because the detail records, both of fare receipts and of expenses, for power, labor, and mainte- nance of the equipment, originate on the divisions, with wide difference, in local conditions and with varying personalities among officials. 10 ORGANIZATION OF ACCOUNTING DEPARTMENT Street Railway Forms Two characteristic features of the work of the accounting department result from the situation just described. The first is the large use of forms or impersonal blanks for written report, used, of course, in many branches of business but rarely to such an extent. The forms required in street rail- way accounting fall into three groups: (i) brief and frag- mentary records by subordinate employees regarding their daily work, taking the place of the informal conference reports of most other lines of business — an example is the "day card" turned in by each conductor; (2) summaries of the preceding records, and also record of office work, by local supervising officials; (3) authoritative digests and interpretations of all these records and reports prepared in the comptroller's office. The large use of forms of the first two varieties is especially significant. They constitute the original statement of fact regarding essential parts of company business, for example, the conductors' records of cash and tickets received daily and the bills of lading and way-bills issued by express agents. The forms of this kind have to be filled out by a large number of employees, many of whom are inexpert. Conductors, for example, constitute more than a fourth of the total number of employees on a street railway, and the forms filled out by them are particularly important. From thirty to fifty per cent, of the conductors are new to the ser- vice each year. Designing these forms is a most important part of the work of the comptroller's office. They must be definite and complete and at the same time easily intelligible and handy in make-up. This reliance upon forms increases correspondingly the work of the accounting officials; there is a mass of detail checking and filing to be done daily. But it minimizes error and makes exact records possible. THE COMPANY ri Large Amount of Expert Supervision Needed The second characteristic feature of street railway account- ing is the relatively large number of persons employed in supervising and inspecting the work of subordinate employees. Thus the reports of the conductors are constantly and minutely checked by the division officials, and checked again to some extent, together with the reports of the division officers themselves, in the main office of the comptroller. The division offices and the express stations are periodically examined, moreover, by a force of traveling auditors attached to the comptroller's office. Most street railways maintain in addition a secret service force to supplement these regular agencies. Finally, with regard to passenger receipts, it is a point worth mentioning that the company may depend to some extent upon its honest patrons to see that dishonest ones pay their fares. Many passengers take an interest in seeing whether the conductor rings up all the fares, and if he does not some of them will report the negligence to the company. It may be said also that the use of the prepayment fare-box has helped very considerably. CHAPTER II THE ACCOUNTING DEPARTMENT Two Branches of the Accounting Department's Work In scope the work of the accounting department falls into two categories which might be termed "outside" and "inside." By the "inside" work is meant i.ere the processes of record- ing, digesting, and interpreting, within the comptroller's office, the various reports which come up from various depart- ments of the company's activity. By "outside" work is meant the supervision of accounting processes connected with mak- ing the original records, which are mainly in the hands of employees in other departments. Officials of the road who have charge of operation, supplies, construction, etc., require certain things to be done. In so far as any of these actions involve the receipt or expenditure of money the accounting department steps in and directs the manner in which suitable records of the transaction shall be kept, and to such extent as may be necessary supervises the work to make sure that the record is duly made. In both branches of its activity the practice of the best street railway companies today is to give the accounting department entire independence of action. This department records the history of the company and summarizes the results of company activities. If it is to have beneficial effect upon the activities of the company the data and statistics it compiles must be correct, complete, and impartial. No restraint, no influence to make improper entries in the books of record should ever be brought to bear on the accounting official. This official should be entirely competent, absolutely honest, and fearless, and thus be in a position to write the 12 THE ACCOUNTING DEPARTMENT 13 history of the company, so to speak, just as it is from day to day. Under these circumstances the public, the stockholders, the directors, the president, and others interested are assured of the truth, the whole truth, and nothing but the truth. "Outside" Supervision The chief lines of the "outside" supervising activity of the accounting department are the following: 1. The Passenger Service. This, the most important part of the company business, takes a correspondingly large share of the attention of the accounting department, in con- nection with the work of conductors and other representatives of the operating and traffic departments. 2. The Express and Freight Service. This new branch of the business, growing up in a sense independently of the original organization, has necessitated not only much addi- tional work in checking shipments of goods and in handling claims for damage or loss, but a new development also of the operating and accounting organization, that is to say, the system of express stations which is virtually independent of division lines. 3. The Pay-rolls. Labor is one of the two chief items of expense for a street railway company. The special conditions of employment of conductors and motormen necessitate a great deal of work by the accounting department in checking the preparation of the pay-rolls. 4. Purchasing. 5. Stores. The accounting department has much work in connection with these departments, especially with the stores department, with its many detail processes calling for close supervision by the comptroller's office. 6. Additions and Betterments. The constant renewal and improvement of equipment and other property involves continual record and checking of items of construction work I4 ORGANIZATION OF ACCOUNTING DEPARTMENT in connection with the engineering departments and the operating department. 7. Other Departments. There are a number of account- ing processes of more fragmentary nature in connection with the legal department — in the matter of handling damage claims ; with the operating department — in connection with the management of supplies of fuel, etc., at power stations; with the treasurer's department; and with the engineering department — in connection both with maintenance of equip- ment and with construction. Altogether this "outside" supervising work takes up a very large part of the activity of the accounting department. "Inside" Work The "inside" work of recording and digesting the reports which come from other departments is wholly in the hands of the main office of the accounting department. These records of various sorts reach the comptroller's office in more or less fragmentary condition ; they must be put into perma- nent form, must be summarized and digested and interpreted. All this work is extremely important and requires expert and reliable officials. It is what used to be regarded as the pecu- liar task of the accountant With a large company today it fills the time of a dozen or more experts attached to the comp- troller's staff. The work involves the keeping of the general books; of the detail books, which in any modern business are very numerous; the record and the collection of accounts receivable ; the treatment of accounts payable ; and finally the preparation of statements summarizing company activities. This work, however, is less peculiar to the street railway business with respect to methods and handling, than the super- vising work in connection with other departments. It does not differ greatly as to method from the general accounting work of other lines of business. To a considerable extent, THE ACCOUNTING DEPARTMENT 15 moreover, this work has been standardized since the issue by the Interstate Commerce Commission of its System of Uni- form Accounts for Electric Railways with its classifications. Other branches of the inside work, however, are more peculiar to the street railway business or represent new and interesting developments. The work of the statistician's office in study and interpre- tation of company activities is partly a further development of work done in connection with statements, partly an analysis of material not before considered by accounting officials. The system of frequent and searching audits of the divi- sion offices, and of certain other departments, by traveling auditors attached to the comptroller's office is a feature peculiar to street railway accounting. Accounting Department Staff The staff of the accounting department includes the accounting officials attached to the division offices and those of the main office. On every division there is at least one per- manent representative of the department, who has close super- vision over the financial part of the passenger service, who acts as paymaster and performs various other duties. On large divisions he may have a large force of assistants; on small divisions he may work alone. In any case he must be a distinctly reliable and competent man. He is responsible to the comptroller for his special duties, and at the same time responsible to the division manager like other division officials. At each express station, moreover, of which there will be perhaps several within the limits of a division, there is an agent who represents in part the accounting department and in part the operating department. The local representatives of the department have the duty of collecting the detail records and making a preliminary examination and digest of them for the comptroller's office. !6 organization of accounting department There is a mass of detail checking of fragmentary records to be gone through with every day in the local office, which must be done both accurately and quickly and which cannot be allowed to get into arrears. The main office rechecks authoritatively the original records forwarded from divisions and express stations and also the digests and reports from lower offices. The main office has, of course, the further duty to which all of the accounting processes thus far roted are preliminary, that of coordinating all these local reports to give a unified view of the work of the road as a whole. Advantages and Disadvantages of Divisional Organization The disadvantages of the divisional organization with regard to the work of the accounting department are obvious. A relatively larger staff is needed, and a larger number of highly efficient officials, than if the work were concentrated in a single office, under the immediate supervision of the comp- troller. The chances of error, and even delay, are greater. There are, it is true, some compensations. The divisional organization gives a certain degree of flexibility to the sys- tem, which very likely saves friction. It makes possible a first check of the original records by persons familiar with local and personal conditions. It frees the staff of the comptroller's office from the tedious preliminary checking of reports. On the other hand, if the work could be concentrated in a single office it could be done more quickly and more cheaply, because modern machine methods could be used. With division offices of varying size machine methods cannot be used so well. In small offices there would not be work enough to warrant the purchase of the Hollerith machine and similar devices. The writer is heartily in favor of concentration, of having as much of the accounting work done in one office as possible. The accounting methods outlined in the book, however, are THE ACCOUNTING DEPARTMENT 17 to a great extent based upon the division plan, because it is easier to condense and combine systems than it is to enlarge them. Accounting methods devised for a large road with many divisions could be adapted readily enough to a small road by trimming and omissions. The Main Office The following chart will give an idea of the organization of the main office of the accounting department and the dis- tribution of work among its officials. > Oo x< cor UJlL. £° z UJO N < o q: O uSIZi ,00: Of y _j _i o t o 8§g q: Id _j u u_ UJ X o a UJ X £* -C* rY t^UJ 111 5h 1 3 U u _1 CD ^9< -> Z c* o£ < UJ UJ UJ I Y. Y. O O CO £ H c < uj y I? Q iu ==: U- > U- 00 UJ* <1u < UJ ul O ZQ UJ UJ O-J IE _l _ Trip l*Coll Z^Coll. 3^Coll 4*0311. 5*0311 6*Coll 7*Coll. 8*Co!l j Reverse side of above Form 13 Remarks: Form I. Conductor's Day Card (face and reverse). Size, 8 z / 2 X 9. PASSENGER— CASHIER'S ROUTINE 25 THE WESSEX COMPANY CONDUCTOR'S REPORT TO COMPTROLLER Punch here Cj Dnlr TIME WORKED Run No Hra Min. No.. .No. 1 Transfers f. ■> 5t X , X Nn X X ■ No " Issued X X Registe No XX F«n»-hr,x No X » - Fnrf/vt* 4 ) i i i .. Started X X » - Startr/t* S, Total Registe X Total Registered* $ Trip No. Car No Specify Terminals and Time TOTAL Registnw FARES CASH FARES ticket: jndFREE PASSES REGISTER READINGS TARE-BOX READINGS TRANSFERS Starting from Time Arriving At Time Collected Issued Dollars 03 1 2 1 2 1 z __ -rr 12 TOTAL TOTAL PASSES REVENUE PASSENGERS REVENUE TICKETS CASH FARES Note here number of * 0"=.n Don Fane.* C*nlleH-. Size, 8^ X 14. . 2 "OUTSIDE" ACCOUNTING WORK For some large divisions where there are many conductors a printed list of conductors' badge numbers is furnished on Form io. This check is not to cover the amounts contained in such packages but to ascertain only whether or not the returns of any conductor are missing. THE WESSEX COMPANY DIVISION Cash Bags were taken from House as checked be . . .A. M. on ....19.... 2602 2652 2702 2752 2802 2852 2604 2654 2704 2754 2804 2854 2606 2656 2706 2756 2806 2856 2608 2658 2708 2758 2808 2858 2610 2660 2710 2760 2810 2860 2612 2662 2712 2762 2812 2862 2614 2664 2714 2764 2814 2864 2616 2666 2716 2766 2816 2866 Signed Messenger. Signed Badge No Received by Clerk. Form io. List of Conductors' Badge Numbers. Size, 8y 2 X 13. Register and Fare-Box Readings As a check on the conductors' reports, the readings of the car registers are examined independently, as soon as the cars reach the barns, by inspectors responsible to the barn foremen. PASSENGER— CASHIER'S ROUTINE 33 When a car reaches the barn the inspector whose duty it is copies the readings on Form n — a four-page folder giving the numbers of the cars on the division, with spaces for read- ings, etc. The illustration below shows one page of this folder. THE WESSEX COMPANY DAILY CAR AND REGISTER RECORD OPEN CARS Date 191 CAR NO. REGISTER NO. REGISTER READINGS TAKEN BY COND NO. RUN NO. 401 I 402 ^--V_^-^^^-^^-^^^_--^w^-s_----^_---0---^-^V-«» 420 421 Form II. Inspector's Register Reading. Size, 4^2 X o. This form is merely a memo for the inspector. At the end of his working day he copies the readings on Forms 12 and 13, according to whether the car has merely the clock register or has both register and fare-box, and sends one copy of each form to the division cashier and to the comptroller. If a car from another division has come into the barn, the inspector uses Form 14 for that car and sends a copy of this form to the division cashier and another copy to the comp- troller. These register reports must reach the division cashier's office as soon as the conductors' reports to which they correspond. 34 'OUTSIDE" ACCOUNTING WORK THE WESSEX COMPANY REGISTER REPORT LOCATION C* CAR HOUSE , 0ATE No. Register at Starting Register at Ending Registered No. Register at 5tarting Register at Ending Registered Amount bf aught forw 3rd — ■ > — ^ Total Total Inspector Form 12. Register Reading Report. Size, S X A x % l A- THE WES5EX COMPANY DAILY CAR AND REGISTER AND FARE-BOX RECORD DATE. Car No Register No. Register Reading Eare -box No. Tare- box Reading Taken by Cond No Form 13. Fare-Box and Register Report. Size, 4 X 9. (One page of a four-page folder.) PASSENGER— CASHIER'S ROUTINE 35 Date. THE WESSEX COMPANY DIVISION No.l Register Report FOREIGN REGI5TERS USED ON LINES ON DATE SPECIFIED Form 14. Register Reading Report— for Foreign Car. 9 T A X IS- Size, Division Cashier's Routine The first part of the daily routine of the division cashier's office is to check and correct the reports from conductors and register inspectors. It involves (a) counting the cash unless this has been done already by receivers; (b) counting tickets and passes; (c) verifying conductors' statements on day cards, cash slips, and ticket envelopes by comparing the regis- ter readings as reported by the inspectors at the barns; (d) checking transfers, so far as time permits. All these will occupy a large proportion of the first day following that cov- ered by the conductors' reports. After this work of verifying, the following digests and reports are prepared for the main office of the comptroller: a report of passenger earnings (Form 16) sent to the comp- 36 "OUTSIDE" ACCOUNTING WORK troller daily; a report of tickets and passes collected (Form 15), also sent daily; a report of ticket sales and miscellaneous business (Form 28), sent to the comptroller four times a month; a monthly balance sheet (Form 29); and various monthly reports such as Earnings by Routes (Form 137), Car Mileage, Car Hours (Forms 150-152), etc. To complete this program of work every day — the sum- mary of daily business must be in the comptroller's office by the second day after the business described — in addition to the other duties of the local cashier, requires careful systema- tizing of the various tasks. The order in which they are best taken up will no doubt vary with local conditions. The order here given, however, may be used to advantage either in a large division office where the cashier has eight or ten clerks who oversee several hundred cars and conductors, or in a small office where the cashier must do all the work unassisted. (1) Conductors' Cash In a division office where drop-safes are used check the conductors' returns from the drop-safes and count the cash. Deposit this in the bank and make the proper entries in the division cash book. In a division office where there are receivers this will have been done already — the money will have been counted and the deposit made and reported to the division cashier as stated above ; or the money for deposit will be put into a safe where the cashier can get it when he comes on duty in the morning, in those cases where the receiver finishes his work and goes off duty probably by 4 o'clock in the morning. (2) Sorting Day Cards, Cash Slips, etc. Sort the conductors' day cards and arrange them accord- ing to the schedule of regular and special "runs" for the day. PASSENGER— CASHIER'S ROUTINE 37 (The cars of a street railway operate over certain fixed routes, each route being given a distinguishing letter, A, B, C, etc., for convenient reference. The conductors and motor- men working over each route have certain "runs" or working periods. For instance, John Smith goes on from 6 a.m. to 12 n., from 1 to 4 p.m., and extra from 7 to 10 p.m.) Sort in the same way the conductors' cash slips and ticket envelopes and also the register and fare-box reports sent in from the inspectors at the barns. (3) Counting Tickets and Passes Count all tickets and passes. While tickets figure less in the street railway system here described than in some other companies, a good many are used in the course of the day and the different classes of tickets sold at different rates must not be confused. The classes used by one company are: the regular five- cent ticket furnished in books for convenience but not reduced in price; varieties of commutation tickets, such as monthly books sold for ten cents per day and good only between cer- tain points; twenty-five ride books and fifty ride books good only between certain points; workingmen's tickets selling at four cents each in books of a hundred; and pupils' tickets sell- ing at two and one-half cents each. (See page 49.) The tickets should be counted face upward for greater accuracy and the clerks should make sure when opening the conductors' envelopes that the tickets have all been properly cancelled. This is especially important with reference to free "employees' tickets." The contents of each envelope are counted separately at first and any corrections necessary are noted on the outside of the envelope. Then the tickets are grouped according to classes or distinguishing letters and counted again. From these figures the cashier fills out Form 15, "Dairy Report of 38 "OUTSIDE" ACCOUNTING WORK Tickets and Passes Collected." Finally, the tickets are made into bundles of fifty or one hundred by classes and sent to the comptroller's office. THE WESSEX COMPANY Daily Report to Comptroller of Tickets and Passes Collected on Division. Date 191 .. . Class DESCRIPTION" All Line tickets Pupils 40 ride Jonesville-Foote's Corner Walter's Switch and Shady Lane E. Lake 50 ride Smithville 50 ride Winton-Georgetown 20 ride Raymond 50 ride Winton 50 ride So. Watertown 50 ride Greensville Totals Total Revenue Tickets Employees' Passes. Complimentary ... Workmen Strip . . Directors Total Free Passes This Report agrees in total with my Daily Passenger Earnings Report. Signed. Division Cashier. Form 15. Cashier's Daily Report of Tickets. Size, 5^ X 11. (4) Compiling Report of Daily Passenger Earnings Begin writing up from the day cards (Forms i, 2, pages 24, 25) a report of passenger earnings (Form 16). This form records or summarizes the conductors' reports on the day cards. After the day cards have been properly sorted by badge numbers and also by routes, a clerk enters PASSENGER— CASHIER'S ROUTINE 39 >- z: o o X UJ CO CO u u X Z 2 £ z "° 5 E 2 > O C £ X E 2 > u >, ^ E -c *J -w > LL Q. 4-1 -t-> o E 5 £ * 5 = £ j: (/) > a * O 4) «> £. 2 £ ^ o a, CO a. E W o fa < Oh « o o. u 4> Q 00 X ia VO w u r/3 >» d 03 o £ W p. £ h fa 3 O E < i- u PASSENGER— CASHIER'S SPECIAL DUTIES 6 7 The Wessex Company 191 Local Cashie THIS IS has returned Conductor .... Motorman TO CERTIFY all property of THAT the Company issued to him, and upon the adjustment of his accounts with the Company you may return to him the amount }f his deposit. MANAGER. 1 hereby . Dollars from The Wessex Company, bei ng the amount deposited by me with the Company as stipulated. CONDUCTOR MOTORMAN Form 24. (b) Employee's Deposit Slip (reverse). treating it as an original deposit receipt. It should be noted carefully on the stub of the original deposit receipt that the employee asserted the loss of the original receipt, and that the full amount of his deposit was repaid on such and such a date. In issuing employees' deposit receipts, if an error should be made in filling out the form, the cashier should prepare another in its place and retain the cancelled form. He should attach this cancelled form to his next report to the comptrol- ler's office, writing across the stub of the book the word "can- celled," and showing the date the cancelled receipt was sent to the comptroller's office. 68 "OUTSIDE" ACCOUNTING WORK , 191.... Mr Cashier. This is to certify that Badge No has returned all the property of the Company loaned to him and you may return to him the amount of his deposit. .MANAGER. I acknowledge having received from The Wessex Company Dollars ($ ), being the amount de- posited by me with the Company, as required. Employees receipt No issued to me on has been mislaid by me, and I agree that if this receipt is ever found I will return it to the Company, and I will save the Com- pany harmless from any amount that may be required to be paid by reason of the loss of this receipt No . Witness Form 25. Employee's Application for Duplicate Deposit Receipt. Size, %y 2 X 11. Employees' Lunch Vouchers When men are held for orders on the cars so as to prevent their going to their regular boarding places for meals the com- pany usually furnishes them with a twenty-five cent lunch voucher, as per Form 26. The operating department is provided with copies of Form 26 to be distributed to the various starters at the barns. The starters date and sign these forms as needed, filling in the employee's number. Whenever a crew is ordered to work past the time of going to their regular boarding places for meals the starters issue a voucher to each man. The conductors and motormen sign these lunch vouchers and obtain cash for them in two ways. They may hand them with their time slips to the timekeeper to be turned over to the cashier, who on pay day pays the men the amount called for by the lunch vouchers they have turned in during the week. Or the men may go to PASSENGER— CASHIER'S SPECIAL DUTIES 6 9 the cashier's office at any time and receive cash in exchange for whatever number of lunch vouchers are due. This plan, besides enabling the men to get their money at any time dur- ing the week, saves time on pay day. 25c THE WESSEX COMPANY Division LUNCH VOUCHER No. 246002 Upon presentation, three days after date, of this check, duly received, at the Cashier's office, a pay- ment of TWENTY-FIVE CENTS will be made to Conductor Motorman Issued by Starter or Foreman RECEIVED PAYMENT Date 191 CONDUCTOR MOTORMAN NO. NO. Form 26. Lunch Voucher and Stub. Size, 8j^ X 3J4. Record of Lunch Vouchers The lunch vouchers are made up in book form with a stub. The stub is to be filled out by the starters at the time they fill out the voucher, and at the end of each day the starters turn over to the division manager all books from which they have used any lunch vouchers during the day. From the stub upon Form 27 which is provided for his office and which shows the badge numbers of all conductors and motormen on the divi- sion, the manager takes off the total number of lunches fur- nished the men during the day. If the total shown is proper the manager approves the form in the space provided and turns it in to the cashier. This approved slip from the mana- ger's office is the cashier's warrant for paying lunch voucher checks, provided that they are presented as required, namely, three days after date. These lunch vouchers should be punched with a conductor's punch as an adequate protection against cashing twice. 7o "OUTSIDE" ACCOUNTING WORK THE WESSEX COMPANY This report to be prepared and turned over to local Cashier promptly when "Lunch Vouchers" have been issued to Conductors or Motormen .Division Pate of lssue_ CONDUCTOR OP NO Of CONDUCTOR OR NO Of CONDUCTOR OR NOOF CONDUCTOR OR NQOf CONDUCTOR OR NO Of MOTORMAN NO CHECKS MOTORMAN NO CHECKS MOTDRMAN NO CHECKS MOTORMAN NO CHECKS MOTORMAN NQ CHECKS Conductors and Motormen whose numbers are listed above, have been Held for orders on the cars, ana are entitled to the number of Lunch \feucher Checks marked opposite their respective names. Form 27. Lunch Voucher Report. Size, 8^ X 14. CHAPTER V PASSENGER SERVICE— REPORTS AND RECAPITULATIONS Passenger Business Cash Book In connection with his various duties the division cashier should maintain two separate and distinct cash books. The first and larger records the daily receipts from the passenger service and sources incidental to that service. On the debit side of this book he should enter the amounts received from the passenger business during the day, noting what they were for and entering them in three columns: "Passenger Receipts," "Ticket Sales," and "Miscellaneous." "Miscel- laneous" includes money for chartered cars, express labels, conductors' "shorts," etc. All money received from these minor sources should be entered in the cash book and depos- ited daily in the bank, if possible at the time when the money received from conductors for fares is deposited. On the credit side of the cash book the cashier should enter the amount deposited in the bank, giving the name of the bank and also the money paid to conductors for "overs." The amount of the deposit must of course agree with the bank advice sent to the company treasurer. This cash book should be balanced each day ; the balance carried forward to the next day as cash in hand. Working Fund Cash Book In addition the cashier should maintain a working fund cash book. Each cashier will receive from the company treasurer a small working fund to be used: 71 *7 2 "OUTSIDE" ACCOUNTING WORK 1. For the payment of wages of men who have been dis- charged and who should receive their money before the regular pay day. 2. For the payment of wages of employees who for some reason were not paid up to the date when the cashier was directed to return to the bank all unex- pended pay-roll money. 3. For repayment to conductors and motormen, when they leave the service of the company, of the amounts of their deposits. 4. For payment of express and cartage bills when credit cannot be obtained and payment has to be made immediately. 5. For payment of items approved by the division mana- ger in cases of emergency when the disbursement cannot be handled by regular bill and voucher. The cashier should keep account of this working fund in a small special cash book. For the first two items mentioned above he is reimbursed by the weekly pay-roll check. (See page 190.) The fourth and fifth items refer to exceptional cases. Once or twice a year perhaps some emergency may require disbursements through the division working fund for such a reason, but it should not be a thing that happens every month. It is particularly objectionable to have the working fund voucher cover payments for material. Necessary mate- rial should be arranged for in the regular way through the purchasing agent's office. When disbursements must be made from this fund for such special reason, the cashier should be careful in every instance to obtain the written approval of the division manager and should report fully to the comptroller regarding the emergency which necessitates its payment through the working fund. On the credit side of this cash book the cashier should PASSENGER— RECAPITULATIONS 73 enter the disbursements daily, giving dates, names, and amounts. It is more convenient if he arranges, in showing the disbursements on the credit side, to include in the first column on the page the amounts which are to be included on the regu- lar working fund reimbursement voucher, and in the second column the items which are reimbursed through the pay-roll or otherwise. Emergency Cases In emergency cases where it is necessary to take money out of the daily passenger receipts to increase the fund, the amount so withdrawn should be shown on the debit side of the working fund cash book and the disbursements therefrom in the regular way on the credit side. Then when the working fund reaches the point where it is possible to reimburse the receipts for the amounts withdrawn, the amount should be duly shown on the credit side of the working fund cash book under the date when it was transferred back to the receipts. Following this procedure, the working fund book at the close of business every day will show the amount of cash that should be on hand in the division office for everything not covered by the general cash book, that is to say, for everything except the passenger receipts and the items included on Form 28. Like the regular cash book, the working fund cash book must be balanced daily. Working Fund Statement At the end of the month the cashier will balance the book, carry forward the balance to a new page, and immediately prepare a statement of disbursements on foolscap paper with columns ruled for dollars and cents. This statement should be headed as follows: "Disbursements from Working Fund of (Name of the cashier, title, location) for the Month of " Then should follow the date of each disburse- 74 "OUTSIDE" ACCOUNTING WORK ment, the name of the person to whom the money was paid, brief particulars, the amount and the account to be charged. The approval of the division manager should be obtained. To the statement should be attached the receipts covering these disbursements in the same way as they appear on the state- ment. The statement should be sent to the comptroller for voucher as soon after the first of the month as possible and in no case later than the fifth of the following month. This statement should be prepared in copying ink so that an impres- sion may be taken of it. At the end of each month a statement must be prepared for the disbursements, no matter how small they may have been. A payment to reimburse the working fund may be made twice a month if the cashier runs short of funds. It should be stated, by the way, that in the case of amounts advanced for settlement of damage claims, a voucher should be prepared immediately. The voucher is in favor of the per- son to whom the money has been paid, with a notation at the top of the voucher "Make check payable to" (here should be inserted the cashier's name and title). The Period Report of Business Besides the two reports sent to the comptroller's office daily, as stated on pages 35 and 36, the division cashier pre- pares a report of ticket sales and miscellaneous business on Form 28 four times a month, a monthly balance sheet, Form 29, and several other monthly reports, all based chiefly on the routine passenger business. Some of these, which are of a statistical nature, will be discussed in Chapter XXIII. The period report (Form 28) is illustrated herewith. Each division cashier will make a report to the comptroller on this form at the close of business on the 7th, 14th, 21st, and last day of each month. The report will show the "com- PASSENGER— RECAPITULATIONS 75 . . 03 [0 <^« +-> c 3 O £ oooow o ( aj OlOOONO ' K ujeq'r-liH n> / > t- in WX 3 OB >* dPQk 2 ho 55"S MPA Office endin > to c o "§ XJ a 3 c H GO 00 'u 3 > W •O £ 60 £ P .s fe W 0) M tn E H 3 O CJ u 73 03 03 / C ^i a.* \ o £o( 03 p; ; ; 033 J (J 0) 43 0> \ >, w ^ *0 'O H S-t t- ^ I H ooo^oo . OWW^HW f T3 M tH 1 C u rt Eh u fc ■M u O H H i-l C / H o \ C) c H ■S ( .st: U3 O £ 3 ^{ > ft — ' : : a. ui ) S 3" c« \ Qtf < a, h ) ( B J « H c 3 03 \ U rt o o / A C §g 8 v. w 0) rt ( »- 1 e o H ( -3 -1 < >> f ) 3 In X) ) C5 - u 03 si \ 33 o 03 -a a \ ~ •4-" 1— t ) Or-j ( HO ) ct: O o \ H CT3 ^3 t, i^5 ) Q 0) o 3fi is o \ .5° x r/J 03U>> P w / S'E c> \ C a> •n C£ ( *P* _ w 3 o ( W •aj Ofi ) s»s \ 3 X O ft « 5-3 4J Oj \ 2 « ^ O f ""* 0) o C > — a 0) 03 c tuoF P c o o a> 3 Co? •a P bo £os ai3 -a 03 - 5a« grht Line mits Labels 3 c c si V) 2 2 3 5 UJ z Cri D a z ■ « 1 a I E — UJ 8 a ■n £ y 1 3 in a> c E f u z X < \ -J UJ ID § t a z cx - K) 'S CHEC SIGNte K Pro Car No Nr> Transported from Ml wessex comrany in apparent good order tfberviisc noted, the following goods; n rtatp. M Shipper No. Articles Weight Rate Charges i P«>l!v£>rerl DELIVERY CHECK l! , — 1 Si » < " O a *t xo ° -5 O «J W d> 2 ■= A 4. 4-1 = c < 5) H O ft u £ S 4> e u c o o x.y = : w< £ S a t . C/3 * 4 > Q z c C J : w H . ffi B c : H u. B : E o 1-1 O • o o > i 4 O o > o • - + i o « 5 O « < J3 CO Uh 102 'OUTSIDE" ACCOUNTING WORK .Office, State of 19 M. To THE WESSEX COMPANY, Dr. (EXPRESS DEPARTMENT) For transportation of 1 Our Charges From State of ^Advanced Charges W-B No Date Weight J Amount of C. O. D Shipped by Total $ Received Payment For The Wessex Co. Express Department. Form 40. Receipt for Money. Size, 8% X 3 T A- station to obtain a written disposition order from the con- signor. This order should be filed as part of the original bill of lading given to the consignor when he made the shipment. As soon as the forwarding agent obtains this written order, he should notify the receiving agent, who will handle the shipment in accordance with the shipper's instructions. If the shipper wishes the shipment returned to the forwarding point, the agent making the return should bill the shipment back with the original charges, plus the return charges. When making such billing reference should be made to the original billing. Money Deposited Daily in Bank All money received during the day at each station is depos- ited daily in the bank and notice is sent to the comptroller's office on Form 7. In towns where the company does not maintain bank accounts agents should not deposit company money to the credit of their personal accounts and then remit personal checks to the company in settlement for the business at their stations. Money collected by them for the company must be EXPRESS AND FREIGHT— LOCAL ROUTINE 103 -t-j -m _ <4.2 HO — t- — 4> c3 O X OU C/3 *j >» > 03 u fe 1) 4) I.WI > °tf s Q s ; » (0 C bo ^4 > c3 -o.fi n «» a> en 15 s m H C O O H (4 O C by '53 c O : H E • ^ w : Q § ££ •• O^ 2h : <« : 6 > >> eu ja tf I Oq : m V O : a > XfX ■ O V * j 1 !>0 H 01 4) C u 1 2 W "u C/3 H 1 < > J2 Cd < io4 "OUTSIDE" ACCOUNTING WORK sent on to the company treasurer. They may, however, accept checks from customers when there is no question as to the customer's responsibility. Way-Billing Freight and Express After being carefully checked with the shipments the bills of lading are copied upon way-bills, similar to that here shown (Form 41). A larger size, 17 inches by 9 inches, is also used. The left half of the sheet gives a description of the articles shipped, the name of consignor and consignee, and specifies the charges due. The right half of the sheet is for checking by the company employees through whose hands the shipment passes. As soon as prepared, the way-bills are carefully footed, made into bundles for the various points, and sent on with the shipments. Among other shipments to be way-billed are the reports to the comptroller's office, which should be sent dead- head, plainly marked "D. H.," and showing the forwarding station. Express labels (Form 42) should be pasted on all express matter. They will show the amount of prepaid charges if the shipment is to go forward paid, or else the amount to be collected. Form 42. Express Label. Size, 3 X 2,y 2 . C. O. D. Packages All C. O. D. packages, and all valuable packages such as jewelry or furs, whose value is greater than that of shipments EXPRESS AND FREIGHT— LOCAL ROUTINE I05 ro y J2 O V Ife s. < > <*£ 1 2 85 .23 8 lL 5 > H 1- L." 8 n 1 1 to 5 in u ! «> i3 CO Z 10 ■8 £ 1 -D ° E ai u wi ID J? ^ -P '■£ -- rvj fO 1 U) jQ -e-c > ■O 8 to T3 C co ^S ->0 en *a O £6 « c> § to O l_ Jj £ 1> 35 CD CO 3 2 UJ UJ z ra Ci 2 in z C> <_> «fc a c * P z m § E 0. jr O E V E < b o> 3 -5 O H (_» ■*■ U_l UJ > UJ DC a uj a. X x s -S '71 • 106 "OUTSIDE" ACCOUNTING WORK accepted in the ordinary course of business, should be written up on a way-bill such as Form 43. A G O. D. label is provided (Form 44). One of these labels filled out in accordance with the instructions printed thereon should be pasted conspicuously on C. O. D. packages when they are received for shipment. In no case should a C. O. D. package or shipment go forward without this label. Another such label should be pasted on the lower left-hand corner of the C. O. D. way-bill. THE WESSEX COMPANY EXPRESS DEPARTMENT C O. D. Return Charges to be Paid by. Employee receiving' must enter in above blank space the amount of C. O. D. and whether shipper or consignee is to pay return charges on collection, pasting label on C. O. D. shipment at the time of receipt. Agents at destination must make re- mittance of C. O. D. collection to shipper or agent at shipping point within twenty-four hours after collection Name and address of shipper Form 44. C. O. D. Label. Size, 4X3. Messengers, billing clerks, and all others interested should be instructed that under no circumstances should a shipment covered by one of these way-bills go forward without being accompanied by the bill. Messengers in charge of cars upon which shipments are forwarded should see that the way-bill accompanies the merchandise shipped and that the billing and EXPRESS AND FREIGHT— LOCAL ROUTINE 107 shipment tally in every respect. After ascertaining this by actual count and inspection, the messenger should endorse the way-bill with his signature. At transfer points the mes- senger receiving the shipment should check it and endorse the way-bill in the same way. C. O. D. Register A C. O. D. register (Form 45) is used to register all C. O. D.'s from one station to another, careful record being kept of all shipments. The forwarding agent should see that the C. O. D. envelopes are returned promptly by the receiving agent or that a satisfactory explanation is given for the delay in returning. THE WESSEX COMPANY EXPRESS DEPARTMENT Mnnthof COD. REGISTER WAY-BILL ARTICLES CONSIGNOR CONSIGNEE Oest. or fvvd fbint CQDor Value DRIVER'S SIGNATURE REMARKS Date No 6.1 1« Back WB.No ... | — 1 Form 45. C. O. D. Register. Size, 11 X 14. Collecting for C. O. D. Shipments Under no circumstances should a C. O. D. shipment be delivered unless the amount due is collected at the time of delivery. Checks should not be accepted in payment for such shipments unless certified by a bank. When a shipment is sent C. O. D. the amount should be collected in currency and io 8 "OUTSIDE" ACCOUNTING WORK so remitted to the consignor. If the consignee fails to pro- duce the amount in cash or a certified check at that time, the goods should be brought back to the station and the forward- ing agent promptly notified, so that he may take up the ques- tion of disposition with the consignor. Where the shipper of C. O. D.'s wishes to change the con- signee, or have the C O. D. reduced, or to have the consignee relieved of charges, or where the entire amount to be paid is received, the forwarding agent should approve the in- structions and then way-bill them through. The receiving agent will return the original bill, envelope, etc., free of charge to the forwarding agent. A statement of all outstanding C. O. D.'s should be sent to the comptroller's office with the regular report (Form 28) at end of each period. "Over, Short, and Damaged" Reports In case a shipment does not tally with the way-bill or is in any way defective, the receiving agent should issue an "Over, Short and Damaged Report" on Form 46. The following instructions printed on the back of this form must be observed exactly. Rule i. These reports should be made in triplicate, sending the original to the forwarding station, a copy to the Comptroller and retaining the triplicate. They should be numbered commencing with No. 1, and con- tinuing in numerical order until advised by the Comptroller to commence new numbers. If you do not get your report back within four days report the fact to Comptroller's office together with copy of original report, attach- ing copy of billing. All shorts, overs, etc., must be immediately reported in the above manner to the forwarding station, sending a copy of the report as stated to the Comptroller. Rule 2. You will make proper notation on copy, showing what is done with papers when they leave your office. They will be called for in many cases to be attached to claims, in which case you will show our claim number and date attached. If the matter has been adjusted EXPRESS AND FREIGHT— LOCAL ROUTINE 109 THE WESSEX COMPANY Express Department REPORT OF FREIGHT Over, Short, Damaged, Refused or Unclaimed Commence with No. One. Agent's No. [trims report must not be re- garded as an excuse for neglect- ing to use all other known means of rectifying errors. General Office No. STATION 191 The following freight is at this Station from Way-Bill No from Station, 191 T3 S >> DO < Consignee and Destination Articles Way-Billed All Marks All Notations on Way-Bills % U 1) Hi < All Marks Articles Received Articles Over or Short — Nature and Extent of Damage REMARKS: 1 1 Form 46. Over, Short, and Damaged Report. Size, 8 X 10^2. (Reverse of form gives space for Station, Agent's No., and Date, also the instructions which are shown on page 108.) you will mark "O. K." on copy and show full particulars as to how and when adjusted, filing report in usual manner. Rule 3. This report must be made at once and sent to forwarding agent. In case freight* is over and forwarding agent cannot be located, then send the report to this office, noting thereon "cannot locate forward- II0 "OUTSIDE" ACCOUNTING WORK ing agent." Forwarding agents will make necessary notations as to their record and return report at once to receiving agent who will file same in his office in numerical order, provided the matter has been adjusted. Otherwise continue investigation until matter is adjusted, or until it becomes necessary to send all papers to the Comptroller for further investigation. Rule 4. Articles over (less than carloads) which are plainly marked should be promptly forwarded to destination by the nearest natural route (unless marks on package show a different route) and a regular way- bill made for same, showing no weight or charges, but being particular to note on face of way-bill, "Astray Freight," and refer to O. S. & D. No. Deliver only upon proper proof of ownership. Rule 5. Consignees should be notified of articles over which plainly belong at the station at wnich they are unloaded and such property may be delivered if consignee shows proper proof of ownership, but care must be exercised to collect sufficient money to cover the probable amount of freight and charges. Agent will then take immediate steps to secure the regular revenue way-bill. Rule 6. Articles reported short, which are received after a claim for their value has been presented, must not be delivered to consignee until the Comptroller has been communicated with. Rule 7. Report of unclaimed or refused freight must be made im- mediately after agent has ascertained cause for same, and, whenever practicable, forwarding agent must promptly notify the shipper and request disposal orders. Rule 8. Agents will be considered personally responsible for any loss resulting from failure to comply fully with these instructions. When issuing an O. S. & D. report the agent should specify also the class of merchandise (see page 94) to which the way-bill in question belongs. Investigating O. S. & D. Reports When an agent receives from another station an O. S. & D. report, he should enter the particulars in a record book (Form 47). This record should provide for the following: 1. Date O. S. & D. report received 2. Date and number of O. S. & D. reports and from where received EXPRESS AND FREIGHT— LOCAL ROUTINE III Way-bill number and date ; car number Consignee Destination Article Record of all papers sent to other agent with date Remarks and final disposition THE WESSEX No. - REPORT FROM WAY-BILL FROM WAY-BILL NO. DATE CAR CONSIGNEE 1 Left-hand Paqe | 1 1 L — -1 - . | 1 | => * COMPANY DESTINATION ARTICLES No. Billed No. Recti. Report To Date REMARKS REPORT RETURNED I Right-hand Page — | 1 J ____|__.i ■ Form 47. Over, Short, and Damaged Record (left-hand and right-hand pages). Size, 10 X 16. For example, in entering an over or short report in his records, the agent would use the first line for the date when the report was received and this would be the heading under which all reports received that day would be entered. In column "No." should be entered the number of "short" notices received. Under "Report from" the name of the sta- tion forwarding the report and the date of the report should be entered, using one column for the name of the station and H2 "OUTSIDE" ACCOUNTING WORK one for the date. In the next three columns should appear the forwarding station, the way-bill number, and date. A record is also made of the car number, the consignee, the destination, and the article. The columns "No. Billed" and "No. Received" show any difference between the ship- ment as received and the way-billing. Columns "Report to" and "Date" show the record of papers, etc., if sent to other agents or other parties for investigation. Column "Report returned" is the record of the date when the report is returned to the agent issuing it, and the name of the station to which the report is returned. Way-bills to be Abstracted All way-bills must be abstracted, moreover, in regular form, whether correct, "over," or "short." When abstracting way-bills for which they have issued an "over" report agents will make reference on their abstract to the number of this "over" report. With way-bills which are "short" the charges may be reported on the abstract as uncollected. Agents should remember that the comptroller must be noti- fied promptly of the disposition of all "shorts." If a claim is presented to the agent it should be turned over to the comp- troller immediately with all available information. Issuing Agent's Corrections When an agent finds it necessary for any reason to report changes and corrections in a way-bill he should issue Form 48. This form is made in triplicate, the original being sent to the comptroller and the duplicate to the agent whose way-bill is corrected. The agent receiving the duplicate will, if it is found correct, sign and forward it to the comptroller. If erroneous, he will forward it to the comptroller with his rea- son for non-acceptance. The tissue copy is retained by the agent making the correction. EXPRESS AND FREIGHT— LOCAL ROUTINE 113 Agent's No Comptroller's No ORIGINAL THE WESSEX COMPANY EXPRESS DEPARTMENT Station 191... Comptroller Head Office, and Agent at Dear Sir: — I have made the following corrections on Way-Bill No from to dated 191 WAY-BILL READS PREVIOUS TO CORRECTION: No. of Car Consig- nee and Destin- ation Wt. Rate Frt Chges. Adv. Chges. Amt.to Collect Prep. Tot. Footings Way-Bill WAY-BILL READS AFTER CORRECTION. No. of Car Consig- nee and Destin- ation Wt, Rate Frt Chges. Adv. Chges. Amt.to Collect Prep. Tot. Footings Way-Bill I have found the above charges correct, and have corrected my accounts accordingly. Agent Agent This Correction Sheet must be sent IMMEDIATELY to the Office of Comptroller. (Duplicate) This Duplicate Correction Sheet must be sent IMMEDIATE- LY to the Agent as per direction No. 2, in front of Book, and original of the same Form must be sent IMMEDIATELY to the Office of the Comptroller. The Agent receiving this sheet will, if it is found correct, sign and forward same to Comptroller; if erroneous he will for- ward to Comptroller, with reason for non-acceptance. Form 48. Agent's Correction of Way-Bill (in triplicate). Size, 8j^2 X 10%. (Triplicate is a tissue copy, and is headed "Agent's Copy." At bottom of triplicate is noted : "This copy to be retained by Agent issuing it.") ii 4 "OUTSIDE" ACCOUNTING WORK It should be noted here that it is the duty of the receiving office, the "destination office," to verify the charges entered upon way-bills. If a way-bill is not filled out according to the tariff, whether the shipment is collect or prepaid, the destina- tion agent will correct it and promptly issue an agent's correc- tion on the office making the error. Tracers All companies that handle a large volume of freight and express have had the experience of losing shipments. To find such shipments the following tracer (Form 49) is provided. These tracers should be attended to immediately by all agents. THE WESSEX COMPANY EXPRESS DEPARTMENT 191 ... . TRACER ANSWER AT ONCE IMPORTANT On Shipped to Is reported short at destination. Please make a careful search of your station, and also over delivery records, and advise on this sheet if you can close this shortage. Agent. TO AGENTS: Form 49. Tracer. Size, Sy 2 X 11. CHAPTER VII EXPRESS AND FREIGHT SERVICE — LOCAL OFFICE SUMMARIES AND SPECIAL WORK Settling Sheets At each station the way-bills, both those forwarded and those received, will be written up daily on settling sheets. For outward way-bills Form 50 is used, and for inward way-bills Form 51. One of these large sheets is filled in with the station name and the date; then after the copies of the forwarded way-bills are in shape, all those of one day grouped together, one of the clerks starts writing up or filling in the settling sheet. The station to which the shipment goes is written in ; the number of the way-bill and the total of the way-bill are put down. Then the amount of money paid in advance is entered. If the shipper has a credit account and is to prepay charges, his name or number is put down. All other way-bills are recorded in like manner. At the close of the day the sheet is totalled, a summary made, and all totals are posted to the proper ledger accounts. All outward way-bills should be written up on settling sheets from the carbon copies the day after they have been issued. Inward way-bills should be written up in the same manner the day they are received. They should show the forwarding point, the way-bill number, the "collect" footing, and the per- son or persons chargeable. When all way-bills have been written up the settling sheet should be footed and a recapitu- 115 n6 "OUTSIDE" ACCOUNTING WORK EXPRESS AND FREIGHT— SUMMARIES nj lation made in the column provided, showing the distribution of charges, as previously explained. Posting Settling Sheets to Ledger The amounts which appear in the recapitulation column of the settling sheets should be posted on the debit side of the station ledger against the proper accounts, showing the date and specifying outward and inward business by the letters "O" and "I" respectively. AH cash transactions in the local office should be entered in the station cash book daily and posted into the ledger to the proper accounts. Issuing Bills and Collecting The agent has also the duty of issuing bills for express shipments to credit customers and of collecting them. In the case of bills issued to consignors for outward shipments the bills of lading should be checked against the forwarded way- bill and the amount of charge put on the bill of lading. Then the agent will issue Form 52, specifying the date of shipment, the articles sent forward, the destination, and the amount of charges as way-billed. In the case of bills issued to consignees for incoming shipments Form 53 is filled out from the incoming way-bills. To this is attached a copy of the freight receipt (Form 38) showing the consignee, the forwarding point, the way-bill number, the date, the articles received, and the amount of charges. The amount of outward and inward shipments as shown on Forms 52 and 53 should agree with the amounts set up in the ledger. All bills should be collected weekly by the local office unless the customer is privileged with monthly credit. n8 "OUTSIDE" ACCOUNTING WORK Office, State of Date 191.... M TO THE WESSEX COMPANY, DR. Express Department OUTWARD SHIPMENTS DATE ARTICLES CONSIGNEE FROM AMOUNT ^^^l^„^ TOTAL Form 52. Bill for Outward Shipment. Size, 8 l / 2 X 8}^. Office, St Date 191.. M TO THE WESSEX COMPANY, DR. (EXPRESS DEPARTMENT) INWARD SHIPMENTS DATE ARTICLES CONSIGNOR FROM AMOUNT TOTAL, Form 53. Bill for Inward Shipment. Size, 8 l / 2 X &/>. EXPRESS AND FREIGHT— SUMMARIES 119 Credit to Shippers Credit should be extended only upon the authority of the comptroller's office. When an application for credit is received by an agent the request should be forwarded to the comptroller's office, together with all the information obtain- able offhand concerning the financial standing of the appli- cant, the location of his home office if not in the town, and an estimate of the amount of his weekly business with the road. Upon receipt of this information the standing of the appli- cant will be looked into, and the agent will then be advised whether or not to extend credit to the applicant. All exten- sion of credit not authorized by the comptroller's office is charged to the agent's account, and he is held responsible for the money involved. Credit should be extended only for one week. No depar- ture from this rule should be made, unless specifically author- ized by the main office. Bills should be rendered on the 7th, 14th, and 2 1st, and last day of each month, so far as possible. In cases where the consignees prefer to have the bills on a regular day of each week, such as Saturday, their request should be complied with. Payment is required within one week after the bills are rendered. Report of Unpaid Bills If the bills are not paid within the allotted time, a report of that fact should be made to the comptroller's office on Form 54. This will show the date and name of the station, the ending date of the week for which the bill remains unpaid, the full name of the party, the date the bill was rendered, the amount of the bill rendered, and the reason for non-payment. This report should be signed by the agent. The report for the week ending the 7th of each month should be forwarded on the 1 5th ; the report for the week end- 120 "OUTSIDE" ACCOUNTING WORK THE WESSEX COMPANY (EXPRESS DEPARTMENT) 191 To the Comptroller, Head Office: Report of Unpaid Authorized Credit Accounts Week Ending NAME Date Rendered Amount Reason for Non Payment ~~ J _^-^-^_^V_— s_— V_-^^-V_^-^-— -^--^-— ^^-^-^^- Agent. NOTE — Report for week ending 7th of each month should be for- warded on the 15th. Report for week ending- 14th of each month should be for- warded on the 22d. Report for week ending- 21st of each month should be for- warded on the 1st of the following month, and report for the period ending the last day of each month should be forwarded on the 8th of the following month. Each report should include all unpaid accounts for pre- vious week, showing each week separately. Bills un- paid, account of disputed rates or other causes should also be reported, and if referred to other departments for adjustment, give date referred, way-bill date and number. Form 54. Unpaid Credit Accounts. Size, 8H x J 4- ing the 14th should be forwarded on the 22nd; for the week ending the 21st, on the first day of the following month; and for the period ending the last day of each month, on the 8th of the following month. Each report should include all unpaid accounts for the previous week, showing each week separately. Bills unpaid on account of disputed rates or other causes should also be reported, and if referred to other departments for adjustment, the date when referred should be stated, with the way-bill date and number. In case of fail- ure to notify the comptroller's office of delays in payment, or if credit is granted without authority, the agent is held responsible for any loss which may be sustained. EXPRESS AND FREIGHT— SUMMARIES I2 i Extending and Withdrawing Credit Credit should be withdrawn at any time when the agent thinks it is no longer safe to continue it. In the event that immediate action is necessary, he should notify comptroller's office at once. If there is time and opportunity to report the matter by letter, it is better to take that course before discon- tinuing the credit. The agent should also advise promptly of changes made in the name of any concern for which credit has been authorized. The comptroller's office furnishes a list of concerns to which credit has been extended. A circular letter of instruc- tions and a list of credit accounts referred to should be filed together in a convenient place for ready reference, and should be produced for the inspection of the traveling auditor when checking the accounts. Changes authorized from time to time by the home office should be entered on the list, and the letter of authority attached thereto. Abstracting Way-Bills Besides entering way-bills on the settling sheets the agent must send an abstract of them once a period to the comptrol- ler's office. Forwarded way-bills are sorted and abstracted daily on Form 55 according to class order, namely, "Freight," "Express," "Class C," "Class B," and "Milk" ; and in numer- ical order. Received bills are abstracted at the end of each period according to classification, division, date, and station order on Form 56. Both abstracts should show the total amount of collect and prepaid footings as shown upon the way-bills. A special sheet should be used in reporting delayed way- bills, which should be headed "Way-bills Applying on Previ- ous Period." Such way-bills, however, should be abstracted 122 "OUTSIDE" ACCOUNTING WORK < a. J Q J a. 5° n > DC a. u w S 1-2 zz IU z 13 -I o PQ O < s^ ^ X w W Q «' tfl tn ^ m tf> *., £ W o > £ - M X 2 M w S H < "a u u rt X 00 pq < EXPRESS AND FREIGHT— SUMMARIES 123 4-> 2 s ^r ""! bfi ( \ < Eh -' - - 2 : 60— \\ 4-> ■MO./ 1 1 ^ \ 4> U cS t. CO UPh j ) 1 ) } "*■ 4 •a c \ •"' ■4-> 2 0. 1 \ x XA e ; 01 u Ph ) / °° 1 1 w « P-f ( ( N too 1 Cart Coll 1 1 \ ) w 1 \ \ 'y +j w p I u A <" ( \ 1 w } ( * oi d 1 r^-C 1 feo ( \ ri ) f m Y Office From ■ ^ : O 2 S : § w « O ) ) *o : X S « : 1 1 Form . . CO < tt : H ft >, : ;^g^ : THE RESS ;nt of count. . \\ X S < ►J J 2 : H ts «* n ' 4-> h < ( l /z X 12. I2 6 "OUTSIDE" ACCOUNTING WORK he should obtain a receipt from the person to whom the money is advanced and this receipt should be attached and sent forward with the billing. Credit will not be allowed for- warding agents unless this is done. The shipments should be way-billed as follows: Advance Charges Our Charges Total to Collect •25 -50 -75 I. When the agent makes up his forwarded abstracts the way-bill should be handled as follows: Advance Charges Freight Charges •25 -50 When the total of his forwarded abstracts is carried to his balance sheet he should take credit for 25c to cover the money thus advanced. 3. When a way-bill is received at a local station with an advance charge to be collected as follows: Advance Charges Our Charges Total to Collect •25 -50 -75 the agent should collect 75c when the shipment is delivered. 4. When making up his received abstracts the way-bill should be handled as follows: Advance Charges Freight Charges •25 -50 When making the total of received abstracts to the balance sheet the agent should charge himself with 75c, the amount of money which he has to collect. Settling Comptroller's Corrections When a correction is issued by the comptroller's office, the agent should immediately investigate and settle it as soon as possible. In the case of corrections issued to cover way-bills EXPRESS AND FREIGHT— SUMMARIES 127 not reported, the forwarding agent should, upon request, fur- nish the agent upon whom the correction is issued a copy of the way-bill and all other information which will enable him to settle the correction promptly. The cooperation of all agents on this particular point will make it possible to settle the above class of corrections with a minimum of work. All agents are requested to keep a book showing the num- ber and the amount of each correction issued against their respective stations. This book should show the date of settle- ment, or if returned for cancellation, the date of return and the reason for cancelling. Foreign Company Shipments — Outward Way-Bills In issuing and abstracting way-bills covering shipments from a "foreign" company line, the procedure should be as follows: In the case of "collect" shipments the company charges should be entered in the column headed "Express or Freight Charges," writing the word "Local" at the top of the column. Foreign line charges should be entered in the col- umn headed "Cartage Collect," writing "Foreign" at the top of the column. The total to be collected should, of course, be entered in the column so headed. In the case of a prepaid shipment, the "Prepaid" and "Cartage Prepaid" col- umns should be used in the same manner, heading them "Local" and "Foreign" as above. (See Form 41, page 103.) Foreign Company Shipments — Outward Abstracts Separate sheets, marked at the top "Foreign," should be used for foreign line business. The way-bills should be abstracted in the regular manner, and the charges entered in columns corresponding to those on the way-bill. The totals of the local columns are carried to recapitulation as part of the local business. The totals of foreign columns are shown as separate items, thus: I2 8 "OUTSIDE" ACCOUNTING WORK Local Express Freight Advance Charges $ 2.00 Freight Charges $25.00 5.00 50.00 Cartage Collect $ 4.00 Prepaid Shipments $20 . 00 8.00 30.00 Cartage Prepaid $ 6.00 Total Local $2.00 $80.00 $ 4.00 $58.00 $ 6.00 Foreign Freight $ $ 3.00 4.00 $ $ 4.00 6.00 $ Total Foreign $ $ 7.00 $ $10.00 $ Grand Total $2.00 $87.00 $ 4.00 $68.00 $ 6.00 Foreign Company Shipments — Inward Abstracts Here also separate sheets, marked at the top "Foreign," should be used for foreign line business. Foreign way-bills should be abstracted in the regular manner, with the charges entered in "Local" and "Foreign" columns, as prescribed for outward abstracts. If foreign line way-bills do not show divisions of charges between the two companies, the entire charge should be abstracted in the "Foreign" column and the division made in the comptroller's office. Local and foreign totals are then carried separately to recapitulation, as prescribed for outward abstracts, thus: Advance Freight Cartage Prepaid Cartage Local Charges Charges Collect Shipments Prepaid Anc aster Division Express $ $10.00 $ $6.00 $ Freight .50 15.00 8.00 Winston Division Express 12.00 10.00 2.00 1. 00 Freight 20 . 00 25 . 00 Total Local $.50 $59.00 $1.00 $49.00 EXPRESS AND FREIGHT— SUMMARIES 129 Foreign Express Advance Charges $ Freight Charges $ 2.00 3.00 Cartage Collect $ Prepaid Shipments $ 4.00 5-00 Cartage Prepaid $ Freight Total Foreign $.... $ 5-oo $ $ 9.00 $ Grand Total $■ 5o $64.00 $1.00 $58.00 $ All collect charges on received abstracts and all prepaid items on forwarded abstracts are summarized on balance sheets as usual. The differentiation between local and foreign columns under these captions is used only on abstracts. The terms will not appear on the agent's recapitulation. Agents should see that the total weight as shown on the way-bills is inserted on the abstracts in connection with all traffic exchanged with the foreign line companies. CHAPTER VIII EXPRESS AND FREIGHT SERVICE- RECAPITULATIONS Work in Comptroller's Office The work in the comptroller's office in connection with the express and freight business, while not particularly compli- cated is full of possibilities of error, and needs close attention; none but a first-class clerk should ever be delegated to this work. The accounting for freight and express work is different from the accounting for the passenger work, as so much depends upon the correctness of the billing of the freight and express matter, particularly in assessing charges for the ser- vice performed in conformity to the published tariffs of rates. Much depends also upon the correctness of the records at the different stations. In connection with this work there is, first, the task of checking the reports from local offices, the agents' balance sheets, and the abstracts of way-bills. Next, there is the task of calculating earnings by stations and by divisions. In this work the corrected abstracts of way- bills are checked against the reports of cash deposits from the agents at the various stations and from the company treasurer. In addition, the comptroller's staff must attend to the col- lection of unpaid bills of credit shippers and must adjust and settle claims for damage to shipments. 130 EXPRESS AND FREIGHT— RECAPITULATIONS I3I Checking Way-Bills and Abstracts The abstracts of way-bills come from the stations four times a month on Forms 55 and 56. With them come the original way-bills in bundles. The "forwarded" abstracts must be checked against the "received" and both against the agent's balance sheet (Form 57) also sent in once a month. A convenient method is as follows: 1. The way-bills should be sorted by express stations, those of each station grouped by classes, as Express, Freight, Class C, Class B, and Milk, if more than one class is repre- sented. As a rule, the last two classes will figure but little. 2. The footings on all abstracts and on the recapitulation or summary sheets should be verified and any errors noted in red ink. The figures here shown should be checked with those on the agent's balance sheet. 3. The "forwarded" and "received" abstracts should be checked together and the date, number, destination, and charges noted for each way-bill entered. By beginning with the "forwarded" abstracts of one station and checking the "received" abstracts of each of the other stations with these, quickest and most certain progress is made. Many cases will occur, of course, in which the two sets of abstracts will not exactly tally. For these cases the origi- nal way-bills should be looked up and the abstract corrected. If the way-bill is found in the abstract of one station with- out the corresponding way-bill in the abstract from the other station, it must be added to the summary of these abstracts or deducted from it, according to the date of the way-bill. For instance, in checking the period for seven days ending July 7th, everything dated previous to July 1st should be deducted and noted with this mark, ( — ) ; if the way-bill which cannot be checked is dated since July 1st, it should be added to the report and noted with a different mark, ( + ). In large offices it will take all the time of two clerks to do the checking 132 "OUTSIDE" ACCOUNTING WORK above outlined, and the actual addition and deduction of items from the abstracts will probably have to be done by a third clerk. Checking Unreported Way-Bills After making the corrections and notations the abstract should be gone over again and all way-bills with the mark ( + ), denoting that they should be added, should be drawn off and listed under the station which reports them, the "forwarded" way-bills in one list and the "received" way-bills in another. The way-bills marked ( — ), denoting that they should be deducted, should be checked with the list of added way-bills of previous periods. Way-Bill Transit Book At the end of each month these lists should be checked and all those way-bills which have been added without cor- responding deductions being reported should be written up in a small way-bill transit book, used as a memorandum to keep track of these items. The current month only is recorded on the lists and all outstanding way-bills previous to the current month are recorded in the way-bill transit book. Balance Sheet Corrections The abstracts thus checked should be re-examined, the red ink changes noted, and the abstracts footed again. The changes must be carried to the recapitulation or summary of the abstracts, and from there to the agent's balance sheet. For all changes which affect the balance, correction notices must be sent to the agent on Form 58. The serial number of this notice must be marked on the balance sheet opposite the change, so that the total of these correction notices will agree with the changes on the agent's EXPRESS AND FREIGHT— RECAPITULATIONS 133 1 C CO CO — ns — x x: a* S|3 -M ""I Q-i -x: co 10+j a H C C u o*i a> s C eg 3 s 4-> C0"O Sol. 13 5a fe £ui ► ° re LU =£co w 2 CO re 5 K c Z 2 a +■» +J Jio £ E «£ e E O «- S. t. «.£? u Ll H-£ J-J '>= Q. ffl _ CO ■a — ns 'C O 1) nja >> « c 01 fa ns 1- > « ns — 00 2^ ?5 c. a c t- c «co5.sf ~x!i ? C U«r b ..+>£« cu trcj EO cp_£ »l'J!0O oE u » 0) O ±?C~~ > a) 3*"° 102 O •b tw ■g £ Q °*s£*2<2 £ yja ®-i-n O.CO tuc >■ C * 0) c CD c K S CS "" rrj , uO*"'--% fit. a)*- 1 C O aJ O >< D-O p « -- o*o «3j <"« C~ »0 S- , O ~ ~ r* _" 3 CD ® . c w d h* J '-'»)o5« o o-a o o ?H aadn o fl fa [BJOJ, joj ana P £ m w £ M CD 'C 2 o H 4 " cd O fa ** «?■ _J s p AUXILIARY OPERATIONS 151 him a regular receipt filled out by the cashier, which he will sign and give the consumer when he receives the money. Occasionally a case may occur where the workman collects the deposit without having in his possession a regularly filled out receipt, principally because the necessity of securing the deposit depended upon his investigation of the case. The workman assigned to such a job should have always with him copies of an ordinary acknowledgment of money received, Form 63, which he can sign and give out if the consumer is not willing to wait for the regular receipt. The workman should report to the cashier the issue of this acknowledgment of money received when he turns in the deposit money. ACKNC Received DWLEDGMENT from OF MONEY RECEIVED 191 . . . . Dollars Payment for 100 $ FOR THE WESSEX COMPANY Form 63. Acknowledgment of Money. Size, S l / 2 X 3J/2. Aside from this, the giving of temporary receipts for any payment whatever should be absolutely prohibited. If an employee collects charges for lighting or merchandise, he must in all cases make out the receipt on the proper bill form and in no other way. If the consumer loses the bill that was issued, as often happens, or if a consumer upon discontinuing the company's service pays the man who disconnects the 152 "OUTSIDE" ACCOUNTING WORK meter during the month, the regular bills should be made out and properly receipted. Cancellation of Charges Against Consumers It will sometimes be necessary to cancel charges against consumers of electric light, etc. Generally speaking, the only cancellation that should be made, excepting those made at the end of the fiscal year when adjusting the yearly accounts, should be in case of erroneous bills or return of materials sold. It occasionally happens that a manager may desire to allow reductions in a charge because a meter test has proved that the meter was registering fast or for some similar reason. In cases of this kind request should be made to the comptroller's office by the cashier during the month the error was discov- ered to cancel that part of the bill which was in excess. The cashier should send in a letter approved by the division mana- ger, giving all details, and in due time he will receive instruc- tions regarding cancellation from the comptroller's office. The cancellation should be made on his books in the proper month as directed. All other accounts must be held open until the close of the fiscal year. At the close of the year request will be made by the comp- troller's office for a list of uncollectible accounts. The inten- tion of this list, it should be noted, is to write off merely such accounts as in the judgment of the cashier or manager are definitely uncollectible, and not those which are merely doubtful. A book record of all accounts cancelled must be kept in the offices. The cashier should consult this in the case of every prospective customer, unless he is sure that the applicant has never previously been carried on the company's books, to ascertain if there is an old balance due which was at one time written off. Where this is found to be the fact service must not be installed until the old balance due is paid. It is emi- AUXILIARY OPERATIONS ^3 nently desirable to secure a substantial deposit in addition from such people before again beginning service to them. Refunds to Consumers If a consumer who is still using the service overpays his account, the amount should be handled on the regular cash book as an "interim" and credited to his next bill. That bill should show the full charge and the overpayment applied in the same manner as a part payment. This credit should be shown on the bill presented to the consumer in the form of a clearly intelligible notation. Summary Cash Book If, however, a consumer overpays his account after service has been discontinued, it becomes necessary to pay him back in actual cash; and this refund must come out of the receipts. To take care of this properly a small cash book should be kept by the cashier. It should be noted that this is in addition to the two cash books kept by the cashier in connection with the passenger service. On the debit side the receipts should be recorded, showing their classification in the same manner as these are now shown on the "Advice to the Comptroller." The date shown must be that of the day the receipts were taken in. The total of each day's receipts, of course, should be shown. On the credit side should be entered the date, the name of the bank, and the amount deposited or remitted to the com- pany treasurer. If the total collections of any day are not deposited, the balance should be carried forward to the next day. Both sides for each day will balance, of course, and red ink lines should be drawn across each side to show the sepa- ration by days. When a refund has to be made to a consumer in cash the amount should be taken out of the receipts of the day follow- ^4 "OUTSIDE" ACCOUNTING WORK ing that on which overpayment is discovered. On the day the cash is taken out, the cashier will show the receipts in full on the debit side of the summary cash book and on the credit side will give information concerning the deposit as outlined above, and also the amount of the refund, with a notation to explain this entry fully. If this is done, the two sides of the cash book will then balance for the day. In other words, the debit side of the summary cash book must always show everything that was actually received, and the credit side its disposition. Returning Overpayments If the consumer can readily be reached he should be paid in cash and his receipt taken on a blank similar to Form 63. Otherwise a letter should be written to him explaining the overpayment and enclosing a receipt for him to sign. When the signed receipt is returned the money should be taken to a bank where the company keeps a deposit and the cashier's check obtained and forwarded to the consumer with a letter. The signed receipts, with copies of all correspondence regard- ing them, must be kept in the local office so that they can be readily found at any time. On the back of each of them a notation should be made as to whether payment was made by cash, or by cashier's check. If by the latter, the name of the bank should be given also. The amount of receipts shown on Form 7 must be that of the receipts actually deposited. Amounts refunded are not included on this form ; such "interims" as represent amounts which have been refunded may be ignored. Since the above covers a number of the special points in connection with electric lighting it seems unnecessary to go into any further details here. Other special activities are con- ducted on similar lines and this book, of course, is primarily concerned with street railway accounting. AUXILIARY OPERATIONS jgg Parks and Other Attractions Speaking generally, pleasure parks are not operated with much success by street railways at the present time. In many cases they have been entirely abandoned and in many others they are leased outright by the railway company. In a few cases privileges in and around the parks are let by the street railroad to various concessionaires. Where parks are operated for the particular purpose of attracting traffic, the accounts are handled under the Inter- state Commerce Commission's ruling entirely through "Oper- ating Expenses, Account 81, Parks, Resorts and Attractions." But where such parks and attractions are carried on as a mat- ter of making money rather than to induce traffic on the line of the carrier they are regarded as coming within the defini- tion of an auxiliary operation. Some street railways maintain in addition other property, athletic fields, for instance, where games and entertainments are conducted and fire-work displays, etc., are given. It is extremely difficult to tell whether such enterprises are of bene- fit to the road or not. There is always expense connected with them and as there is a certain amount of traffic on the road which the company would get anyway, it is difficult to tell how much money the special attraction brings in. Hence it is difficult to outline any particular system of accounting. It has been the writer's experience that a brief check of the traf- fic made by the inspectors is about the best record that can be obtained for the purpose. If the park is owned and operated by the company, it is a simple matter to keep "Account No. 81, Parks, Resorts, and Attractions" subdivided so that all charges or credits can be applied to the proper subdivision. A book for the purpose of detail records (Form 138) is illustrated in Chapter XXI. (See also Chapter XVIII.) This may be footed at the end of the month and proved up with the regular expense ledger, 156 "OUTSIDE" ACCOUNTING WORK "Account 81, Parks, Resorts, and Attractions." This is a very simple method of accounting for parks which are owned and operated entirely by the company. A similar record may be kept for athletic fields or other special features which are handled by a street railway company. Where a street railway company leases the entire park, or other attraction, no special records are necessary, because "Account No. 81, Parks, Resorts, and Attractions" will show all details, but on the other hand where a company leases a portion of the privileges and operates another portion, such as perhaps a restaurant or bath privileges, or something of the kind, the accounting methods must be a little more strict. Proper systems of inter- nal checks should be used so that the company will not be defrauded of a portion of its earnings. In the matter of construction accounts for the purchasing or building of parks very little can be said, as the Inter- state Commerce Commission's system of accounts provides "Account 526, Park and Resort Property" with the following explanation — "This account shall include the cost of amuse- ment parks and resorts ; including the excess cost of improved park and resort property over the original cost of such prop- erty retired or removed and replaced. (Note: — The cost of land used for such purposes shall be charged to Account 503, 'Other Land Used in Electric Railway Operations.')" Of course, if the railway company is not under the juris- diction of the Interstate Commerce Commission, or following that commission's uniform system of accounts for electric rail- ways, it can subdivide its construction and equipment accounts for park properties in accordance with ideas of the officials in charge. This subdivision might be somewhat as follows: Organization, Land, Buildings, Equipment, Interest, Insur- ance, and Miscellaneous. In the matter of records for other attractions, such records would depend entirely upon local conditions and the nature and size of the attractions. CHAPTER X THE PAY-ROLLS— PREPARATION Different Classes of Employees Labor is one of the two main elements of cost with a street railway company. An important part of the work of the accounting department has to do with supervising the prep- aration and checking of pay-rolls. The employees of a street railway company include usu- ally those in the transportation service, chiefly conductors and motormen; those working on the track; on the line; in the power-houses ; in the storerooms ; and in the local and general offices. If a road maintains an express and freight service and operates auxiliary enterprises such as amusement parks, the employees are still more varied in character. More than half of the total number are conductors and motormen, the conditions of whose employment are different from those in any other business. Special methods and devices have been developed accordingly in connection with the pay-rolls. Pay-Roll Procedure The procedure may be summarized as follows: With the exception of the comparatively few employees in the general offices, pay-rolls for all employees are made up by divisions in the offices of the division managers. Heads of departments and clerks in the general offices are paid by check, but the method of pay envelopes is used for other employees. The 157 I5 8 "OUTSIDE" ACCOUNTING WORK pay-rolls are first sent to the comptroller's office to be exam- ined ; then are returned to the division offices, where the pay- ment is made by the division cashiers ; and finally they are sent back to the comptroller's office for final checking and filing. Except in the case of conductors and motormen, the proc- ess is very simple. All employees of the road are grouped according to a classification designed to cover all classes of labor on a street railway system, which is made up in the comptroller's office and furnished to the division offices. Each class is given a certain number so arranged as not to conflict with the accounting numbers under which their wages are distributed on the pay-rolls by departments. The following suggestions should be observed by the divi- sion offices. Classification by Occupation When a man is engaged he should be given a definite occupation from week to week until he is promoted or trans- ferred to another department. He should not be designated on the pay-roll merely as a "helper" but as a "machinist's helper," "painter's helper," etc. If he performs duties outside his regular occupation the pay-roll distribution should show the time devoted to such irregular duties. The entire amount of money due any one man for the week should appear in one place only and as one amount on the roll, regardless of the kinds of work he may have been doing. His name should not appear more than once on the roll. Thus every name on the pay-roll will represent a differ- ent man and by counting the names the comptroller can imme- diately tell how many men are employed. When a man quits one job to accept another in a different department his name should, of course, be transferred to the pay-roll of the new department. It is desirable that such transfer be made at the beginning of the pay-roll week. PAY-ROLLS— PREPARATION 159 Approving Pay-Rolls As the pay-rolls are one of the chief avenues through which the company's money is expended, precaution should be taken not only to have them correct but also to have them duly approved by the officials properly responsible. Pay-rolls should be approved by the following: The time clerk preparing the roll The foreman The division manager The comptroller The vice-president or president The first approval is self-explanatory. Regarding the sec- ond approval, if the roll contains the names of men who work on the track, it should be approved by the roadmaster; or if there is no roadmaster on the division, by the chief foreman or the man directly responsible for the time. If it is a shop pay-roll, it should bear the approval of the master mechanic. If it is a conductors' and motormen's roll the signature of the chief inspector, or the man directly responsible for the time of the conductors and motormen, should appear on the roll — and so on throughout the pay-rolls. It will be necessary to secure the signatures of the heads of sections on the particular rolls coming under their jurisdiction. The third approval should be that of the division manager, as generally responsible for all division work. Should any necessary approvals not be secured before the time to send the pay-roll sheets to the comptroller's office, the sheets should nevertheless be sent in. Then, as soon as they are returned to the division and the cashier has them to pay off with, arrangements should be made for the officials con- cerned to sign the pay-roll sheets at once so that the cashier can return the receipted pay-roll to the comptroller's office. i6o 'OUTSIDE" ACCOUNTING WORK THE WESSEX COMPANY For Employees Other Than Conductors and Motormen DAILY TIME CARD Date 191.. Name Description of Work Hours Amount Account Number 1 1 Form 64. Daily Time Card. Size, 8 l / 2 X 4%. THE WESSEX COMPANY NO. NAME DAY MORN IN NOON OUT NOON IN NIGHT OUT EXTRA IN EXTRA OUT I0TAL TOTAI TIMF BATF TOTAL WAGES FOR WEEK THE WESSEX COMPANY NIGHT SHIFT NO NAME DAY OUT IN LUNCH OUT IN SAT. SUN MON. TUE WED THUP. FRI. TOTAL TIM F RATF TOTAL WAC FS Form 65. Time Clock Ticket— Shops. Size, 3^ X 5^. Form 66. Time Clock Ticket— Shops (Night Shift). Size, 3 l / 2 x 5 l A- (On the reverse are the words "This Side Front," "No.," "Name.") PAY-ROLLS— PREPARATION 161 Computing Time The first step in preparing pay-rolls is to compute the time which each employee has worked each week. The men in the various departments — conductors and motormen, those in the carbarns and shops, track employees, linesmen, and those in the offices — fill out daily time slips which they turn in to division timekeepers attached to their department. The following forms are used for the various departments : Form 64, the daily time card used for line employees and shop employees. Form 65, the time clock ticket used by shop employees. Form 66, the time clock ticket for shop employees who work at night. Form 67, the daily check list used for track and road- way employees. THE WES5EX COMPANY DIVISION DAILY CHECK LIST iqi NAME felt Total Time Total Amount Tunc Amt. Time Amt Time Amt. Time Amt Time Amt Time Amt ENTERED APPROVED (Sig ncd }■ Form 67. Daily Check List — Track Employees. Size, 8^2 X 11. 1 62 'OUTSIDE" ACCOUNTING WORK Form 68, used by transportation employees other than conductors and motormen, although some of these names appear on the conductors' and motormen's pay-rolls. The report is given to the man in charge of these miscellaneous employees, whose duty it is to act as timekeeper and prepare pay-rolls of the men in this department. THE WESSEX COMPANY DAILY TIME REPORT (Inspectors, Chief Cond. Chief Motor. Starters, Switchmen, etc. Date 191 . . Name Occupation No. On Duty at From m. From. To m. To.... .m. From. . m. To. . . . Regular ( Hrs. Time ( Mins. Over Time ..Hrs. Mins. (Total. (Time. ..Hrs. Mins. TIME DISTRIBUTED AS FOLLOWS: Register Inspection. Service Inspection... Starter on Street. . . . Starter at Barn nstructing Cond .Hrs. Switchman .Hrs. jAcct. Snow and Ice. Hrs. HSanding Track Hrs. Checking Traffic Hrs. Instructing Motor.... Hrs. Hrs. Hrs. Hrs. Hrs. • APPROVED Form 68. Time Report — Superior Employees. Size, $y 2 X 8^. PAY-ROLLS— PREPARATION 163 Conductors' and Motormen's Time For conductors and motormen, computing "time" consti- tutes a much more complex matter. These men are paid at various rates, by hours, length of run, etc., the necessities of service frequently requiring over- time and extra pay. The work of each man and the amount of his pay will usually vary somewhat from week to week, and what amounts to special calculation is accordingly neces- sary in the case of every man of these two classes. For these men the following time slips are provided: Form 69, "Motor- men's Time Slip" and for conductors a similar slip with the word "Conductor" on it. THE WESSEX COMPANY r 191.. REPORT OF TIME Date Regular Time Over Time Total Time hrs. << { s J t/i J o si hl- j O) .E. >E \ w >£ re- in l- _l j '5 if c c £ L. IL j 22 00 22 — o «5 4"^ CO U Q — o PAY-ROLLS— PREPARATION 167 Motormen who are assigned regularly to this kind of work do not as a rule receive overtime until they have worked eleven hours per day. In cases where it is necessary to use other motormen who have been engaged in the passenger ser- vice to run express and freight cars, they are usually allowed overtime after they have completed the same number of hours as they would have put in had they worked on their regular run. The express agents forward these reports of express motormen's time on Form 71 to the office of the division man- ager, where the time clerk uses them as his authority to allow the men time on their various runs. Time Allowed for Other Service There are various kinds of service other than the regular passenger and express service, such as switching and changing THE WESSEX COMPANY REPORT OF NON-REVENUE CAR MILEAGE Above Includes Work or Line Cars, Sweepers, Snow-Plows, Salt an6 Sand Cars, Wreckers or Other Cars not Engaged in Pas- senger or Express and Freight Operations. Starting Point Time Destination Time Mileage f see \ V footnote/ State Full Particulars of Work Engaged upon, and'KInd of Material Carted, Etc. No. Hours On Each Job | 1 f s " > - — • *- — ^- — ^-—^- — \~^^~-^—^-^*— — •*- — ' — \^-^» v— -^- < I | Show Car Number Below Time Mileage WorR Car Used on. Authorization Authorization No. or Name Time Mileage Car No. "Motor" Car "No. Non-Motor" From To From To ' " r No Motorman Date . NOTE- -Cc nduc tor Must 191 . I Not Write VJO. In This Colum n. C :>n ductor Form 73. Non-Revenue Car Mileage. Size, S l / 2 X 8. 1 68 "OUTSIDE" ACCOUNTING WORK cars, wait orders, etc., for which the barn foreman may wish to allow time to motormen or conductors. Men employed in such work fill out for the barn foreman Form 73. The barn foreman incorporates this information in his own daily report on Form 71. The occasions calling for a report of this kind are in the aggregate very numerous. Occasionally a man on a regular run does not receive his relief at noon as he should, or has to make an extra trip or two. In that case the time clerk will consult the conductor's day card (Form 1 or 2) before allowing him the extra num- ber of hours he should receive. This furnishes a double check on the motormen and the conductors inasmuch as the conductor prepares the report. THE WESSEX COMPANY ADJUSTMENT OF TIME Name No Rate 19 CLAIMS GIVEN Date Remarks Reg. Over Remarks Reg. Over Total Total Adc Deduct Approved Tim<» Clerk Form 74. Adjustment of Time. Size, 7J4 X 7. PAY-ROLLS— PREPARATION T 6o, Adjustment of Disputed Time Form 74 is used by the timekeeper when men are found short in their pay or when they complain of an error in their time. As the timekeeper cannot allow them any further wages on the records that he has, he makes out this form and hands it to the conductor or motorman, who goes to the barn and certifies his claim. In case the man is allowed extra time the barn foreman or superintendent will O. K. the slip and return it to the timekeeper to be included in the next week's pay-roll. Varieties of Pay-Rolls In making out the pay-rolls for the various departments several different forms are used, as follows: Form 75, "Weekly Pay-Roil Sheet," used for office employees, conductors, motormen, and miscellaneous employees in the transportation department, and other employees who are paid a weekly rate. Form 76, a monthly or weekly sheet used for officers or heads of departments, ordinarily in the general office only. Forms yy and 78, used for conductors and motormen in addition to the general form 75. It has been pointed out that keeping the time of conductors and motormen is a complicated matter, inasmuch as the hours of every man may vary somewhat from week to week. It might be remarked here that whereas the instructions issued to timekeepers in connection with shop employees, linesmen, trackmen, etc., can be given very briefly, those issued in con- nection with conductors and motormen might fill as many as a dozen pages. When detailed records by the day and hour are required, these may be given on Forms // and 78. 170 "OUTSIDE" ACCOUNTING WORK O 1 5 s I £ St § I s On &"§' -c • c| t>. M E i-i 5 Uh Jg-6"5 I S 3 IjS If i g^-D &2 S uS% 15 25 £ =£&'■«= 1*1 ■5*; ts S PAY-ROLLS— PREPARATION 171 ai 1r.1T Nn REGISTERED in Ift PAY-ROLL FOR OFFICERS AND HEADS OF DEPARTMENTS THE WESSEX COMPANY To SUNDRY PERSONS, Dr Fnr .Vrvir.M rpnrirrert Hi iring thf> Mnn+h nf _ \a NAME POSITION AMOUNT MONTHLY PAY PAID BY CHECK Name of Bank No. ' II I hereby certify to have paid to the above named persons the ampunts set opposite their names re- spectively. Treasurer APPROVED EXAMINED AND REGISTERED AUDITED FOR PAYMENT Comptroller Vice-President. -1 D -n ' ' m 2 s TO IT 5> », § r~ 1 Reverse side of" above form 1 (- s Form 76. Pay-Roll— Officers (face and reverse). Size, S T / 2 X 14. 172 "OUTSIDE" ACCOUNTING WORK _J _) O I J f - 1 E s i i i >- 1 1 < tj E Q. U «> > X O u ■jj u fi | X m n UJ % > u u B 1 £ 1 111 | 77. t h- ■vj c 5 1 1 sy o PAY-ROLLS— PREPARATION 173 174 "OUTSIDE" ACCOUNTING WORK Approval of Time Slips for Outside Work The following points should be observed by the division manager's time clerk. When employees belonging to one department do work for another they should prepare a time slip showing what work they do and the amount of time spent upon it and hand it to the head of the department for which the special work was done. He will approve the time slip, indicate the amount chargeable and the rate of pay, if different from the man's usual rate, and forward the slip to the timekeeper of the department to which the man belongs. The department time- keeper will enter the time with the rate, and charge the time to the proper account as shown on the time slip. When the rate of pay is different from the usual rate it can be entered on the line provided for overtime, or if this is already filled, between the lines. The total amount of time worked at each rate should be added and carried into the total column. The rate should be shown and the amount of money due at that rate entered in the column "amount." The total amount due each man should be carried out into the column "Total Amount." To illustrate, if a trackman is used for a few hours as a helper in the shop, his time for that work will be approved by the shop foreman and sent to the track department to be entered on the track department pay-roll, and so on. When a conductor or motorman is used for other work the time should be handled as follows : He should prepare a time slip in the usual way on Form 69 or the similar form for conductors and turn it over to the head of the department for which the work was done. That department must approve the slip and forward it to the time- keeper of the conductors and motormen. It also prepares a report of such time allowed on Form 73 which should show the conductor's or motorman's name, time on duty and off PAY-ROLLS— PREPARATION 175 duty, with a description of the work done. Time of this kind refers principally to operating work cars for other depart- ments. It should be grouped or summarized as far as possible according to the account to be charged. It may be entered on the conductors' or motormen's pay-roll. Weekly Wage Table The methods in vogue for determining the wage table for employees whose salaries are on a yearly or monthly basis but who are paid on the weekly roll are not at all uniform. A man whose salary is $1500 a year is placed on the weekly roll at $28.85 on some properties and $28.80, which is correct, on other properties. The following table of wages showing the daily and weekly equivalent for monthly rates of pay will assist all accountants in this connection. Daily and Weekly Equivalents of Monthly Rates of Pay Month 1 Day 2 Days 3 Days 4 Days 5 Days 6 Days Week $15.00 $.50 $1.00 $1.50 $1-95 $2.45 $2-95 $3-50 16.00 •55 1.05 1.60 2.10 2.65 3-15 3-70 17.00 •55 1. 10 1.70 2.25 2.80 3-35 3-95 18.00 .60 1.20 1. So 2-35 2.95 3-55 4-15 20.00 •65 1.30 1.95 2.65 3-30 3-95 4-65 21.00 •70 1.40 2.05 2-75 345 4-15 4-85 22.00 .70 145 2.15 2.90 3-6o 4-35 5-10 22.50 •75 1.50 2.20 2-95 3-70 445 5-20 23.00 •75 1.50 2.25 3.00 3-8o 455 530 24.00 .80 1. 60 2-35 3-15 3-95 4-75 5-55 25.00 .80 1.65 2-45 3-30 4.10 4-95 5-So 26.00 •85 1.70 2-55 3-40 4-25 5-15 6.00 29.00 •95 1. 00 2.85 3.8o 4-75 5-70 6.70 30.00 1. 00 1-95 2-95 3-95 4-95 5-90 6.95 32.50 1.05 2.15 3.20 4-25 5-35 6.40 7-50 34-00 1. 10 2.25 3-35 445 560 6.70 7.85 35-00 1.15 2.30 345 4.60 5-75 6.90 8.10 36.00 1.20 2-35 3-55 4-75 5-90 7.10 8.30 37.00 1.20 2-45 3-65 4-85 6.10 7-30 8-55 ^6 "OUTSIDE" ACCOUNTING WORK Equivalents of Monthly Rates — Continued Month 1 Day 2 Days 3 Days 4 Days 5 Days 6 Days Week 37-50 1-25 2-45 3-70 4-95 6.15 7.40 8.65 38.00 1-25 2.50 3-75 5.00 6.25 7.50 8-75 3900 1.30 2-55 3.85 5-15 6.40 7.70 9.00 40.00 1.30 2.65 3-95 5-25 6.60 7.90 9-25 42.00 1.40 2-75 4-T5 5-5o 6.00 8.30 970 42.50 1.40 2.80 4.20 5-6o 7.00 8.40 9.80 43-00 1.40 2.85 4-25 5-65 7-05 8.50 9.90 45-00 1.50 2.95 4-45 5-90 7-40 8.90 10.40 48.00 1.60 3-15 4-75 6.30 7.90 9-45 11. 10 50.00 1.65 3-30 4-95 6.60 8.20 9-85 H-55 55-00 1.80 3-6o 540 7-25 9-05 10.85 12.70 57.00 1.85 3-75 5-6o 7-50 9-35 11.25 13-15 58.00 1.90 3-8o 570 7-65 9-55 H-45 13.35 60.00 1-95 3-95 5-90 7.90 9-85 n.85 13.85 62.50 2.05 4.10 6.15 8.20 10.25 12.35 14.40 65.00 2-15 4-25 6.40 8-55 10.70 12.80 1500 70.00 2.30 4.60 6.90 9.20 11.50 1380 16.15 72.00 2-35 4-70 7.10 9-45 11.85 14.20 16.60 72.50 2.40 4-75 7-15 9-55 11.90 14-30 16.70 75-00 2-45 4-95 7.40 9.85 12.35 14.80 17-30 80.00 2.65 5-25 7.90 10.50 13-15 1580 18.45 85.00 2.80 5-00 8.40 11.20 13-95 1675 19.60 90.00 2-95 5-90 8.90 n.85 14.80 17-75 20.75 95-00 3.10 6.25 9-35 12.50 1500 18.75 21.90 100.00 3-30 6.60 9-85 13-15 16.45 1975 23-05 105.00 3-45 6.90 10.35 13-80 17-25 20.70 24.20 1 10.00 3.60 7-25 10.S5 14-45 18.10 21.70 25-35 115.00 3-8o 7-55 11-35 i5-io 18.90 22.70 26.50 120.00 3-95 7.90 n.85 1580 19-75 2365 27-55 125.00 4.10 8.20 12.30 16.45 20.55 24.65 28.80 13500 4-45 8.90 13-30 17-75' 22.20 26.65 31.10 140.00 4.60 9.20 1380 18.40 23.00 27.60 32.25 150.00 4-95 9-85 14.80 19-75 24-65 29.60 34-55 166.67 5-50 10.95 16.45 21.00 27.40 32.90 38.40 175.00 5-75 11.50 17-25 23.00 28.75 34-50 4030 200.00 6.60 13-15 19-75 26.30 32.90 39-45 46.05 208.33 6.85 13-70 20.55 27.40 34-25 41.10 47-95 210.00 6.90 1380 20.70 27.60 34-50 41.40 48.35 220.00 7-25 1445 21.70 28.95 36.15 43-40 50.65 225.00 7.40 14.80 22.20 29.60 37.00 44-40 51-80 PAY-ROLLS— PREPARATION 177 The above rates are made to end in o or 5 in all cases. If the fraction is less than one-half of five cents, it is dropped, if more than one-half, five cents is added; but in some of the weekly equivalents that rule is disregarded so that the amount of 52 payments plus the pay for one day will not be less than the yearly amount at the stated rate per month. The figures $166.67 and $208.33, ' m the "Month" column above, represent of course a yearly salary of $2,000 and $2,500 respectively. The practice is to use these figures for eleven months, and then for the twelfth month draw a check for an amount which will complete the even $2,000 or $2,500. CHAPTER XI THE PAY-ROLLS — SPECIAL PROCEDURE AND CHECKING Increases and Changes It should be a rule of any company that no increase in rates of pay and no addition to the employees should be made on the pay-rolls without proper authority. For necessary changes the procedure may be as follows : When an employee's rate of pay is to be increased Form 79 is used. THE WESSEX COMPANY Division 19 . . . Mr. Dear Sir: — I recommend that the pay of employed as be changed from $ per to $ per to take effect 19 for the following reasons: (Signature) (Official Title) Respectfully referred to the General Manager, with recommenda- tion that the increase be allowed. .19. The Foregoing Change in Pay is Authorized to Commence with the Pay-roll for Week Ending 19. . . . 19 NOTE — This form is to be attached to the weekly Pay-Roil for the Vice-President's information. Form 79. Increase of Pay. Size, 7 X 6%. 178 PAY-ROLLS— SPECIAL PROCEDURE 179 This form should be carefully filled out by the official having immediate jurisdiction, and the reasons for the change clearly stated. When approved by the president or other authorized officer, it should be attached to the pay-roll on which it is made effective and sent to the comptroller's office. No change should be made without proper authority. When Sliding Scale Is in Effect -Where a sliding scale of wages is in effect a question always comes up as to when a change should be made to the next higher rate. The following plan may be suggested: After a man has completed his first year's services he is entitled to an increase in rate. Conductors and motormen who are entitled to such increase by reason of having completed an additional year of service on a Saturday are allowed the new rate on the pay-roll of that same Saturday. Conductors and motormen who are entitled to a new rate on a Sunday, Mon- day, or Tuesday, are given the new rate from the preceding Saturday, thereby getting the benefit of the two or three days, as the case may be. Conductors or motormen who are entitled to the new rate on Wednesday, Thursday, or Friday will be given the new rate from the succeeding Saturday. These men will lose the benefit of the one, two, or three days, as the case may be. In other words, changes in the rate of the men are to be made effective only on the first day of each pay week. This plan is effective only when the pay-roll week ends Friday night and the new pay-roll week begins Saturday morning. When Force Is Increased When increases in the force are made Form 80 is used. The division and date are filled in, and all required information given by the official requesting the increase. When properly endorsed by other officials and approved by the president or i8o "OUTSIDE" ACCOUNTING WORK THE WESSEX COMPANY Division 19. Mr. Dear Sir: Authority is hereby requested to increase the force of the , by employing the persons named (Department or Division) below commencing with the pay-roll ending 19. . . for the following reasons: Name or Number of Men Occupation Rate of Pay $ per per. per. (Official Title) Respectfully referred to the with recom mendation that this increase be allowed commencing with the pay-roll week ending 19. , 19. (Date) (Name) (Official Title) The above mentioned increase in force is authorized to take effect with the pay-roll week ending 19. . . . 19 Note Instructions on the Back of This Sheet. Form 8o. (a) Increase of Force (face). Size, 7 X g l / 2 . PAY-ROLLS— SPECIAL PROCEDURE 1S1 MEMORANDUM Roll Item Name Occupation First Appeared No No weekending INSTRUCTIONS 1. In using this form, particular attention should be given to state the date when it is desired to have the increase take effect, and if the increase is temporary it should be so stated. When the form is attached to the pay-roll, a memorandum should be made on the back of form, giving the number of the roll, item, and the date of the pay-roll week the name first appears on. 2. In emergency cases where it is impracticable to attach the form to the roll to which it belongs, a memorandum should accompany the roll showing the number of men employed, oc- cupation and rate,' and the number of the roll, item, and date of the pay-roll week the employee's name first appeared on; with the further information that form has or will be forwarded to cover, if one is found necessary. 3. When this form, covering emergency cases, is received properly approved, it should then be sent at once to the office of the Comptroller, , after noting thereon the information as called for by Clause 1 in above instructions, and not hold form over to be attached to rolls of following week. 4. In cases where authority is given to employ a certain number of men and they are not all put on during any one week, the form should be attached to the roll containing the names of men hired, together with the date of the pay-roll week the names appeared on. Whenever further increases are made under the same authority, a memorandum or letter, should accompany the rolls on which the names appear, giving the roll number, item and date of the pay-roll week the names first appeared on and refer to the roll, by date, to which the authority (this form) is attached. In order to give this information correctly, time clerks should keep a memorandum on file in their office for reference. 5. When the full completion of men has been hired, the fact should be so stated. Form 8o. (b) Increase of Force (reverse). other authorized official, it should be attached to the pay-roll on which it is made effective and sent to the comptroller's office. The instructions on the back should be carefully followed. Resignations and Promotions In reporting changes in the pay-roll which did not involve either an increase in the number of men or in the rates of pay Form 8 1 is used. Suppose John Smith is employed as sub-station operator or blacksmith at $2.50 a day, and John Brown as assistant 1 82 "OUTSIDE" ACCOUNTING WORK ■ THE WESSEX COMPANY NOTE — Report all changes fro,m previous week's roll including promotions or changes of rates, etc., on account of filling vacancies. NAME OCCUPATION PARTICULARS Manager or Superintendent Foreman Form 81. Change of Pay-Roil. Size, 8 X ioy 2 . operator or assistant blacksmith at $2 a day. Smith leaves the service, Brown is promoted to take his place, and a new man is hired to take Brown's place ; Brown gets the same rate of pay that Smith got and the new man the same rate of pay that Brown got. The department, division, and day of pay-roll week should be indicated. In the proper columns the name and occupation of the man who has left the service should be filled in ; whether he resigned or was discharged should^ be stated, and the par- ticulars of the changes made because of such resignation or discharge. In the case cited above the record would run as follows: John Smith, sub-station operator, or blacksmith, resigned, date. Brown, sub-station operator, or blacksmith, promoted to succeed Smith, resigned. Robinson (new man) employed to succeed Brown, promoted. PAY-ROLLS— SPECIAL PROCEDURE ^3 Form 81 should be signed by the local representative of the department and approved by the division manager. It should be attached to the pay-roll on which the changes are made and sent to the comptroller's office. Additional Pay-Roll Suggestions The following suggestions should be observed with regard to the form of the pay-rolls: 1. The last name of the employee should appear first on the pay-roll, followed by his initials or first name. Uniformity as to this point is important. 2. So far as possible names should be arranged alpha- betically by departments. Where there is a large number of employees designated as equipment inspectors or line-men, that particular class of employees should be arranged in alpha- betical order. 3. The pay-roll should not include the name of any employee who has been discharged, or who has left the ser- vice. In making up the roll in advance it may be necessary to write the names as they appeared the week before, but when the rolls are completed the timekeeper should strike off the name of any employee who has left the service or been dis- charged since the pay-roll sheets were written up. This is an important matter, because, in preparing the classification of employees, men might be included erroneously under a par- ticular class if a timekeeper neglected to cross off from the roll the name of some employee who had left the service of the company. 4. In preparing the conductors' and motormen's pay-rolls all the men getting one rate of pay should be grouped together as far as possible ; the names within this group should be placed in alphabetical order. 5. The names should be copied on the pay-roll so far as possible in the same order each week. 1 84 "OUTSIDE" ACCOUNTING WORK It would be well for the local office to retain an impression copy of the pay-rolls each week, as well as of Forms 79, 80, and 81, so that in the event of a roll's being lost in transit after leaving the local office a copy could easily be made. It would also be useful to the local time clerk in case of dispute as to the amount of wages due. Pay-Roll Proof Sheet While making out the conductors' and motormen's pay- rolls from the time slips turned in daily from various sources, the time clerk will find it useful, and in fact it should always be a rule, to prepare a daily pay-roll proof sheet as per Form 82. This form is used as a summary of the timekeeper's work each day showing the regular time and the overtime posted THE WESSEX COMPANY DIVISION PAY-ROLL PROOF SHEET Conductors Motormen Regular Car Hours as per Schedule Extra Car Hours as per Barn Sheets Miscellaneous Car Hours as per Barn Sheets Changes in Running Time Express Car Hours TOTAL Regular Time Posted on Pay-roll Over " " " " I certify that the above is a total of tl men whose names appear on the pa Date 19 Sigm le time posted to various y-roll as of this date. d Time Cl^rk Form 82. Pay-Roll Proof Sheet. Size, 7^ X 10. PAY-ROLLS— SPECIAL PROCEDURE ^5 from the time slips and also the miscellaneous changes in run- ning time, express time, etc., the total of which must equal the regular schedule or running time of all cars, plus or minus any changes made in that schedule. This proof sheet form will be found very handy. One can tell by looking at it exactly how much difference there is between the actual time allowed the men and the actual time posted on the pay-rolls. If the timekeeper is careful to carry it out each day there will be no question whether the pay-roll is absolutely correct. There will be occasional cases, of course, where the proof sheet does not exactly check because of a few minutes allowed or not allowed by the barn foreman. Experience will show very little variation, however, and the proof should be worked out each day. Prompt Notice of Errors to Comptroller The time clerk may discover after the pay-rolls have been sent to the comptroller's office that they included names of men no longer employed by the company, or that they credited employees with a larger amount than is correct. He should notify the division manager who will then notify the division cashier, and the time clerk should send a copy of this notice to the comptroller. The notice states what change should be made and to what account the man's wages have been charged so that proper adjustment can be made in the distribution. Checking Pay-Rolls in Comptroller's Office The pay-rolls when made up are sent to the comptroller's office as soon as possible after the close of the pay-roll week, which according to the plan sketched in this book is on Friday night. The new pay-roll week commences on Saturday. When the pay-rolls from the various divisions reach the comptroller's office, usually on Monday morning, the clerk who has special charge of this matter should first see that the !86 "OUTSIDE" ACCOUNTING WORK rolls are prepared in accordance with instructions issued by the comptroller to the division managers. The rolls should then be distributed to the various clerks assigned to this duty to be checked for mathematical correctness. When the check- ing is completed a voucher should be made up for the total amount in favor of the division cashier and initialed by the clerk who did the checking. The rolls with the voucher should then be submitted to the comptroller for his signature and approval for payment. The voucher, as soon as approved, should go to the voucher register clerk and then to the com- pany treasurer. He signs a check for the amount due and forwards it to the division cashier, who must then cash it at the bank and obtain the necessary funds, in the proper denomi- nations to pay off the entire pay-roll. The pay-rolls in the meantime have been sent from the comptroller's office by regis- tered mail to the division cashiers, who have the duty of actually paying the division employees. The latter part of the process after the rolls reach the comptroller is entirely under the direction of the chief clerk, thus relieving the clerk in charge of the pay-roll work. Payment of Employees In connection with the actual payment the following points should be observed by the division cashiers : 1. Every employee must sign the pay-roll as he receives his pay envelope. In most cases this requirement is easy to meet but there are certain exceptional cases. 2. It will sometimes happen that after the receipted rolls have been returned finally to the comptroller's office the divi- sion cashier will receive a request from some employee for payment, or a request to pay some other party. In this case, in addition to an order from the employee, the cashier must always obtain the signature of the party he pays and be sure to attach to the receipted roll the employee's order. PAY-ROLLS— SPECIAL PROCEDURE I8 7 3. At times it may be impossible for a man to be present at the time of payment to receive his money in person. In this case he may send an order to the division cashier to pay the wages to another person for him. To facilitate the proper filing of such notifications with the receipted pay-rolls, Form 83 has been provided. THE WESSEX COMPANY PAYMASTER: Please pay to my wages for the week ending Approved Signed Form 83. Assignment of Wages. Size, S Z A x 3- Paying Illiterate Employees Where a system of receipts is in effect there is only one legal way of dealing with employees who cannot write. It may be illustrated as follows: 1. Where Numbers Are Used Signature Witness #486 His Tom Smith X Mark 2. Where Name Is Used Signature Witness His Tom Smith Tony X Esposito Mark i88 "OUTSIDE" ACCOUNTING WORK From the above it can readily be seen that it is necessary to write in the number or the name of the employee in addition to the signature of a witness. "His Mark" can be either writ- ten in or put on with a rubber stamp. To make the above illustration more clear it might be added that a pay-roll which contains either the names or num- bers of employees can be stamped in the signature column "His Mark" right down through the page. When the em- ployees are paid off the cashier has merely to see that the employee makes a mark, and may then fill in the employee's name or number, with his own or his assistant's name in the witness column. Under no circumstances should the pay- master make the cross for the employee. The employee must make the cross himself or touch the pencil while it is being made. All receipted pay-rolls, together with the usual certificate on Form 84 should be forwarded to the comptroller's office on the Friday following the day on which the employees were paid off. THE WES5EX COMPANY I hereby certify that the persons named on this pay-roll fbr the week pnrlinrj have br^n paid the sums set opposite their respective names excepting those named below, and that the amounts for those not paid are held by me. NAME OCCUPATION AMOUNT TOTAL h OFFICF DATF. 1 Division Cashier or Paymaster Form 84. Certificate to Pay-Rolls. Size, S J / 2 X 14. PAY-ROLLS— SPECIAL PROCEDURE 189 Unclaimed Wages When wages are not claimed at the regular payment time the division cashier should enter all amounts not properly receipted in the records of unclaimed wages, Form 85. This entry will agree with Form 84 above. On the following morning, Saturday, all the money for unclaimed wages in the cashier's hands should be placed in the bank, in a special deposit credited to an account called "Paymaster's Account." This deposit should be reported to the treasurer to be credited to "Paymaster's Account." A list should be sent to the comp- troller's office, giving the details of this deposit and showing the name, occupation, amount of wages, and the week. After the receipted pay-roll has been sent to the comptrol- ler's office all payments of wages reported unclaimed will be paid by the division cashier, unless the claim for wages is more than six months old (see page 193) from the working fund (see page 71), a receipt for the sum being secured on the regular pay-roll sheet (Form 75). THE WE55EX COMPANY RECORD OP UNPAID EMPLOYEES Week Ending Raymasfer's Number Name Occupation Amount Date Paid Form 85. Record of Unpaid Employees. Size, 8 X 14. Payment of Wages Not Claimed at Regular Time When a man calls for his wages after the pay-roll covering them has been returned to the comptroller's office the records should be looked up. If the man's name is entered there the cashier should take a copy of the regular pay-roll sheet and I9 "OUTSIDE" ACCOUNTING WORK write on it the man's name and occupation, and across the space provided for "Time" the day or the week for which he is to be paid, and the amount. The employee should sign this in the space provided and the cashier should enter in the "Unclaimed Wage Book" (Form 85) in the column "Date Paid," the date the payment was made. The clerk making the payment should enter his initials in the column "Paymaster's No." When taking receipts on the regular pay-roll form each line on the form may be used for a separate payment, so that one sheet will be a receipt for all the payments of this nature made. If neces- sary, of course, two sheets may be used. This additional pay-roll sheet or sheets should be handled just like any other. It should be entered on the week's pay- roll voucher as a separate item : "Unclaimed Wages $ " When the pay-roll check is received from the company treas- urer the division cashier should take out the amount called for by that item and reimburse the working fund. To illustrate, during the week ending July 13 suppose $50 is paid out of the working fund in payment of unpaid wages for previous weeks. A receipt is taken on the pay-roll (Form 75). When the regular voucher to cover the pay-roll for the week ending July 13 is being prepared it should be arranged to include this $50 on it as directed above. This pay-roll sheet should be sent in to the comptroller's office with the voucher covering it and should be charged on the distribution (Forms 86, 87) to "Unclaimed Wages." Assuming that the regular pay-roll for the week ending July 13 was $5,000, the cashier would in the case shown above draw a voucher for $5,050. On the distri- bution the comptroller's office would charge "Pay-roll Sus- pense" with the supposed $5,000 and Unclaimed Wages with $50. The regular pay-roll distribution would be made up as heretofore for $5,000. Very great care should be exercised, particularly in keeping up Form 85. PAY-ROLLS— SPECIAL PROCEDURE IQI THE WESSEX COMPANY Distribution nf fay-roll week ending Division v> N^ WTE - Details of Accounts marked * should be shown on separate report, as per instructions. NO. NAME AMOUNT NO. NAME AMOUNT I - MTCE. WAY AND STRUCTURES Total Brought Forward 1 Supt of Way and Structures IV- CONDUCTING TRANSPORTATION 8 Track and Roadway Labor 63 Supt. of Transportation 8 " •• Other Div* 64 Passenger Cond., Motormen STrainmen 9 Misc.Track and Roadway Expenses © frght&Exp. «... •.. 10 Paving 55 Misc. Car Service Employees 11 Cleaning and SandinqTrack G7A " •* '• Expenses-Pass.Dept. 12 Removal of Snow and Ice ■ 67B » « » m -Exp.Dept. 15 Bridqesjrestles and Culverts 68A 5tation Employees-Pass. Dept. 16 Crossings Fences and Signs &3B » « -Exo. Dept. 17 Signals and Interlocking Apparatus 69 A Station Expenses- Pass. Dept. -_. II-MAINTENANCE OF EQUIPMENT V- TRAFFIC ?Q Supt of Equipment 73 Superintendence and Solicitation 30 Passenger & Combination Cars eo Advertising 30 * » » » "OtherDiv. 8! Parks, Resorts and Attractions 31 Freight, Express and Mail Cars 82 Miscellaneous Traffic Expenses Form 86. Weekly Distribution of Pay-Rolls. Size, 8^ X 14. 192 "OUTSIDE" ACCOUNTING WORK Distribution of Pay-Rolls An important matter for the division managers to observe is that of the distribution of pay-rolls. For this Form 86 is used. The pay-roll charges are distributed among the primary accounts of the operating expense schedule prescribed by the Interstate Commerce Commission on pages 9 to 42 of their Uniform System of Accounts for Electric Railways, 19 14. A plain sheet of the same size, Form 87, is used to show details for which there is not room on Form 86. THE WESSEX COMPANY DH-ailerf Di<=,trihi i+inn of Pay-mil Week Fnriing Division Total Amount — ===== Approved : Correct : Time Clerk Form 87. Distribution of Pay-Roils. Size, 8 T / 2 X 14. Final Checking of Pay-Roll When the receipted pay-rolls reach the comptroller's office a week after being paid they must be carefully checked again. A card index of all division employees in all departments of the company is kept on Form 88. The receipted pay-rolls must be checked against this. Any changes in salary or posi- tion should be noted and recorded upon the cards after the increases have been verified by authorities as explained above. After all receipted rolls have been properly checked and veri- fied they should be put away until a sufficient quantity is accu- mulated and then bound in volumes and placed in the files. PAY-ROLLS— SPECIAL PROCEDURE 193 THE WE5SEX COMPANY NAME OCCUPATION IN PLACE OF DIVISION TRANSFERRED FROM TO DATE - . DATE ENTERED SERVICE AUTH. NO IN- CREASED DE- CREASED RATE PER HOUR DAY WEEK LEFT THE SERVICE REASON RESTORED THI5 RECORD CONTINUED ON CARD ISSUED Form Index Card of Employees. Size, 6X4. Careful Record of "Authorities" The checking of monthly pay-rolls should be handled by special clerks or be under the strict supervision of the comp- troller. All increases in the clerical force should be covered by authority from the office of the vice-president or president. In the case of monthly pay-rolls it is necessary whenever there is an increase in the rolls to advise the company treasurer by letter, stating the name, title, address, and monthly salary, so that the treasurer can obtain a receipt from the person con- cerned on a form of receipt blank used for the purpose. After the "authorities" have all been checked with the pay-rolls they should be placed in the proper file and kept in good order for reference. Writing Off Unclaimed Wages Every six months an entry should be made in the general journals writing off the amount of unclaimed wages for the previous six months. That is, in June all unclaimed wages should be written off up to December 31 of the previous year. 194 "OUTSIDE" ACCOUNTING WORK THE WE5SEX COMP/ Distribution of fey-rolls for Month of_ Division Sheet 1 Cleaning &S3ndinq Track THE WES5EX COMPANY/ Distribution of Pay-rolls for Month of / Note Details of Accounts marked * should be shown on separate sheet Form Distribution of Pay-Rolls. Size, 10% X 14. PAY-ROLLS— SPECIAL PROCEDURE 195 When this is done the division cashiers should be notified so as to bring their records into accord. A record called "Paymasters' Account" is kept in which is entered the account of unclaimed wages in the hands of the local cashiers. It covers one week only, as the cashiers deposit once a week the amount on hand for the second week previous. Final Record and Journal Entries After the distributions have all been received and checked they should be written up on Form 89, which combines the weekly distributions into a monthly distribution report. From this, in turn, are prepared the necessary entries for the general journals. CHAPTER XII THE PURCHASING DEPARTMENT Volume Large but Procedure Simple A street railway, like any large business, requires a large and constant supply of materials. To avoid duplication, waste, and disproportionate cost, every street railway com- pany maintains a purchasing department, through which pass all orders for supplies except emergency orders. The account- ing department has little to do directly with this process until it comes to checking the goods obtained and paying the bills. Indirectly, however, the accounting department is very much concerned with the methods followed by the purchasing department to insure that adequate checks and records of all transactions are provided and observed. While the volume of business handled by the purchasing department is very large, the procedure is readily standardized and made simple, so that in this connection it may be dis- missed rather briefly. The method here outlined may be used to advantage whether the purchasing department is large or small. There are four steps to be considered: (i) making the requisition, (2) buying, (3) invoices, and (4) following up back orders. Making the Requisition All purchases are made only upon properly approved requisitions. Most of these requisitions are made up by the division stores keepers, who should anticipate their wants, or in other words arrange to keep an ample supply of current stock on hand. 196 THE PURCHASING DEPARTMENT 197 Requisitions for new material are prepared by the official tinder whom the material is to be used. A requisition blank should be provided somewhat like Form 90, "Requisition on Purchasing Agent." This blank should be prepared in dupli- cate, the original to go through and the duplicate to be held by the person writing the requisition. The requisition should be approved by the proper officials: the division manager and general manager, when the material is to be used in the maintenance of the property; the chief engineer when the material is to be used in the maintenance of prop- erty under his supervision; and the construction engineer when it is required for work under his supervision; or, when occasion arises, by any official who is empowered to order sup- plies or materials. THE WESSEX COMPANY 191 To the Purchasing Agent; J Pf*- Thc following articles are- required for the Companys use and c •< G.S.K_ should be deli'veredio. 3t dlPA. 1 certify that 1 have examined the above requisition and am satisfied that the articles enumerated therein are necessary for use, and not in excess of immediate requirements Stores Keeper CerTl 5fore5Keeper Form 90. Requisition on Purchasing Agent. Size, 8J/2 X 11. All requisitions receive the final approval of the presi- dent and are then forwarded to the general stores keeper, who determines whether there is material of that sort at any point on the property which can be diverted to obviate the proposed purchase of new material. The general stores keeper consults with the chief engineer and the engineer of construction as to the specifications for all supplies. After he is assured of the 198 "OUTSIDE" ACCOUNTING WORK proper delivery of material purchased, he must certify bills for the same and forward them to the comptroller for payment. Contracts for all materials and equipment negotiated by the purchasing agent must be submitted to the president for approval before execution. Buying On receipt of requisitions correctly drawn and approved by the proper official, the purchasing agent either orders the ORIGINAL THE WESSEX COMPANY PURCHASING DEPARTMENT Order No. Req. No. Mark above numbers on each package, invoice and bill of lading. Please ship the following material, marking each package The Wessex Company, care of Send original and duplicate of invoice to Purchasing Agent, triplicate and bill of lading to consignee unless other- wise directed. No invoice to cover material on more than one order. Freight charges must be prepaid to destination on all ship- ments; where material is sold F. O. B. point of shipment, add the charges so paid to the bill for reimbursement. See Notice on Back, Which Please Read Carefully. In case it is necessary to ask for information regarding any items on this order, please give name of consignee as well as order and requisition numbers. Form 91. (a) Order Blank (face). Size, 8 X 10J/2. THE PURCHASING DEPARTMENT 199 NOTICE 1. Do not hold goods to complete order in one consignment but make shipments as material may be ready, sending a com- plete set of invoices on our forms to cover each shipment as directed on the face of invoice blanks. State where goods are sent, number of packages, number and date of this order and number of req. on each invoice and bill of lading. 2. Invoice blanks will be mailed to you when written for. 3. Do not send more goods than are ordered, as they will not be paid for, but will be returned at the expense of the con- signor. 4. Bills are payable at the office of the Treasurer of The Wessex Company. 5. Accounts for current month will be closed on the first of the following month, and bills received after that date go into the next month's account, regardless of the date they may bear. 6. This company will not be responsible for any goods ship- ped, unless by order of the Purchasing Agent. 7. Drafts will not be honored by this Company. 8. This Company will not pay for Packages or for Cartage. 9. All material is purchased subject to this Company's in- spection when received; rejected material to be returned at ex- pense of shipper. 10. When car number and initial can be obtained it should be shown on invoice. 11. If promises of delivery of any or all items do not meet our requirements we reserve the right to purchase elsewhere, notifying you. Should any portion of this order be unfilled at the expiration of 60 days from its date, we reserve the right to cancel said unfilled portion, notifying you. 12. This Company will not pay interest charges on bills overdue. 13. Assignments will not be acceptable to this company. Form 91. (b) Order Blank (reverse). goods, or sends out for prices or bids in competition so that he may be in a position to buy where the cheapest goods con- sistent with the proper quality can be obtained. Some com- panies use a regular form letter for the purpose of getting quotations and there is no objection to this method if the com- pany is large enough to warrant such procedure. It is very important for accuracy in checking records that all orders be prepared on a uniform order blank, for example, Form 91. This order blank should be in triplicate. The original is signed by the purchasing agent and is mailed to the party from whom the material is to be purchased ; the dupli- cate is retained as an office copy; the triplicate is sent to the official to whom the materials or supplies are to be shipped. 200 "OUTSIDE" ACCOUNTING WORK Invoices As the bills or invoices for material purchased come in they are forwarded to the purchasing agent's office, where the quantity will be checked against the order and the price against the quotation or against the regular list or catalogue price. This branch of work in the purchasing agent's office should be done with great care. Billing clerks often make errors, and unless their errors are caught by the purchasing agent the company may lose a considerable sum of money dur- ing a year. After the invoices have been checked and the pur- chasing agent has approved them they should be forwarded to the comptroller's office and there dealt with as explained in Chapter XX. Following Up Back Orders Where orders for material are many and varied, as is the case with any large company, there will be frequent delays and difficulty in obtaining the goods desired. An important part, of the purchasing agent's duty, therefore, consists in follow- ing up all back orders or bills that for any cause have been delayed. If this is not done, the supply of materials is apt to run low ; furthermore, invoices may not be presented on time. In this matter the accounting department is directly con- cerned, as, unless the materials ordered with their proper invoices are presented on time, the accounting department is unable to reflect the true condition of the company upon its books. CHAPTER XIII THE STORES DEPARTMENT — RECEIPT AND ISSUE OF MATERIAL Relation to Accounting Department Complementary, to the purchase of material is the matter of keeping track of and distributing company supplies. The procedure in connection with the stores work is neces- sarily much more complex and detailed than that of the pur- chasing department. The stores department is organized with a main office under the charge of the general stores keeper and division offices under division stores keepers, these latter responsible in certain ways to the general stores keeper and also as explained in Chapter I, to the division managers. In the case of the stores department, in fact, the division office is particularly important. The general stores keeper, of course, supervises and correlates the activities of all the divi- sions, but the actual work of the department is done mainly through the division offices. The accounting department touches the work of the stores department in two ways. It has a general supervision over the methods of recording the receipt and distribution of mate- rial, and it has the duty of checking over the storeroom accounts once or twice a year through an inventory. Routine in Stores Department With regard to handling material, the methods of the stores department, while practically uniform in principle, may 201 202 "OUTSIDE" ACCOUNTING WORK differ somewhat in minor details according to local conditions and the size of the various divisions. So far as practicable, of course, all the division stores keepers should follow the same rules in connection with their work and the routine should be as simple and as complete as possible. This routine may be conveniently grouped under six heads : I. Requisitions Receipt of Material Issue of Material Care of Material While in Stock Transportation Charges and Scrap Inventories Requisitions The process of ordering supplies has been explained already in Chapter XII. The requisition (Form 90) for all orders is prepared in duplicate in the office of the division manager or of the division stores keeper, as the case may be. The original is sent to the general stores keeper and the dupli- cate is retained by the division stores keeper. It is most important that the essential points in every requi- sition — quantity, number, etc. — shall be entered immediately on a stock card (Form 92) and the requisition then placed on file. This stock card amounts in reality to a running or perpet- ual inventory of the material which is supposed to be in the storeroom at all times. It shows the name and description of articles ; the amount or number on hand according to the last inventory; the amount and price of all goods purchased; the monthly consumption or amount used as detailed on reverse side of card; and the balance on hand at the end of every month. These cards are a vital record for the storeroom and great care should be exercised to see that they are accurately filled out. STORES-RECEIPT AND ISSUE 203 li 1 z .fel E >9 "c 1 6 C2r 1 \ a. So 1 — in p I 1 7,£ / 8 *£ R« £z j f 1 18 it q: 2 "iS i I £• 1 £-* <*=> j ^IS I X iy 1 1 a uj J 1 J 1 to £6 u ID X 1 J j h- I z cf^ «>T3 6 S£ \ &TJ ■fel \ £S j I* 1 ST* ■ ^p 1 -K H < -1 j < CI is c 3 j ^ 1 I l zfe 8 < z *= O 3= \ P i -?> ~\ d z S IU t J J I 2 (0 O i 1 ' 204 "OUTSIDE" ACCOUNTING WORK When the order has been placed by the purchasing depart- ment a copy is sent to the stores department, where number and quantity are checked against the stock card and changes are made on the card if necessary. Receipt of Material Material is sometimes received at the main storeroom and distributed thence to the divisions, but more often it comes first to the division storerooms. It is received by the stores keeper or receiving clerk. All material received should be carefully checked and examined and then as carefully recorded and stored where it can be readily found. In every case it should be counted or weighed and its condition closely noted. If it is accompanied by a shipping memorandum or triplicate invoice of the mate- Sheet No.. DAILY REPORT THE WESSEX COMPANY 191 Stores Keeper : The following Material has been rec'd this day by. At Signed by Quantity Description of Material Name of Shipper State Whether Received by Frt., Expresi or Team If Freight State Pr». Number Where Stored (State Location) If Material Is Received In Bad Condition Note Same Below Remarks Form 93. Daily Report of Material Received. Size, 8^ X 5^. (Columns continued on reverse of form) STORES— RECEIPT AND ISSUE 205 rial purchased, the date of receipt should be stamped or writ- ten thereon, with a notation as to quantity and condition. If there is no shipping memorandum the items checked should be noted on a "Daily Report of Material Received in Store- room" (Form 93). Checking with Shipping Memorandums The shipping memorandums should be turned in to the stock-room office of the division storeroom at the end of each day. The stock-room office will enter the quantity and date in the respective columns on the stock card. The shipping memorandums which are held on file should bear the order number. If there are discrepancies between the material received and the shipping memorandum or triplicate invoice, a nota- tion should be made in pencil on the stock card after the order number and also on the purchasing agent's order, which is on file. All shortages and incorrect shipments should be reported to the purchasing agent and a copy of the report should be sent to the general stores keeper. After all material is received, the date of receipt should be marked on the purchasing agent's order opposite the item. When all the items are received on any one order, the copy of that order should be sent to the stock-room office and placed on a numerically arranged file of completed orders. Stock Cards and Invoices To facilitate the balancing of the stock cards at the end of the month, the unit in which the goods received are reck- oned — dozens, pounds, gallons, etc. — should correspond with the unit which is used in the column of issues. For instance, nails should not be listed by kegs among articles received and by pounds among articles issued. The quantity and price on the triplicate should therefore be reduced to the terms used in 20 6 "OUTSIDE" ACCOUNTING WORK the unit of issues and the entry made on the stock card should be in accordance therewith. It is essential that the date of material received should include the year date. To facilitate the subsequent pricing of material so that it may be issued at the correct price, it is important that each lot as it is received should be given a lot number, as explained below. When the freight bill is received, that also should be entered on the stock card and the bill properly stamped. It is important that the figures on each stock card be carried out to the column "Price Including Freight." The original invoices for material ordered are sent from the comptroller's office to be checked. They should be com- pared with the triplicates, and if in order they should be duly signed to indicate that the material has been received and marked up to show the proper accounts chargeable and the dates when they were passed. The stores keeper will give each invoice a number. The triplicates should bear this number, together with the date when they were passed, and this information should also be entered on the stock card. In cases where no triplicate is received from the shipper, the stores keeper will make up a memorandum in similar form for his files. Rule for Charging Material All material which is handled in any way by the stores keeper should be charged to General Stores. There are one or two exceptions to this rule which need a word of comment. Even in the cases of these exceptions, however, it should be insisted that all material handled by the men in the storeroom should be charged at first to General Stores, until such time as it is used, and should then be reported in the regular way in the monthly report of material used. Car bodies, trucks, and wheels purchased for new cars STORES-RECEIPT AND ISSUE 207 under authorization might be considered exceptions to the rule just stated. The invoices covering them should be charged to the proper authorization and not to General Stores account. This applies only to material for new cars, how- ever, and not to trucks and wheels purchased to replace others which are worn out; these, of course, will be handled in the usual way. When air brakes and electrical equipment are received, each case should be taken up with the comptroller's office for a ruling. One other possible exception is that of large new machinery for power stations. Expediting Discount Bills All discount bills should be passed immediately. If any of them are passed before the material to which they refer is received, proper steps should be taken to hurry that material along; if the material has not been delivered after a reason- able time, the matter should be taken up with the purchasing agent and copies of the correspondence sent to the comptrol- ler's office. The triplicate invoices should be transferred to a file designated as "Invoices Passed to Comptroller's Office." When Invoice Is Lacking If, after receiving the material, the original invoice or manifest is not received within a reasonable time, it is essential that steps be taken to secure the invoice. In order to lessen the number of cases of this sort, all stores keepers should pre- pare on the first of January, April, July, and October a list of such invoices as they should have passed, but which they have not yet received. For this they should use Form 94, "Report of Uninvoiced Material." This list should cover all material received up to one month prior to the date of the report. After everything pos- sible has been done to obtain the missing invoices, lists should be forwarded to the comptroller's office where further steps 208 "OUTSIDE" ACCOUNTING WORK THE WESSEX COMPANY REPORT OF UNINVOICED MATERIAL STOREROOM 191 To the Comptroller: The following material has been received to (date) 191 .... for which I have no original invoice. Req'n Order Date Material No. No. Rec'd From Whom Purchased Amount Remarks Stores Keeper. NOTE — This report to be sent in the first of Jan., Apr., July, and Oct. and must include all material received one month prior to date of report. All uncleared items on previous statements should be brought forward. If nothing to report send the form in marked "None." If the Stores Keeper has received the tripli- cate invoice but not the original, he shall note "Triplicate Rec'd" in remarks column. Form 04. Report of Uninvoiced Material. Size, 8^2 X uy 2 . will be taken to obtain the invoices and have them paid. This will tend to reduce the items which appear on the annual inventories as "Exhibit B." Monthly Report of Invoices Passed After all other monthly reports have been made out, a monthly report of invoices passed should be prepared on Form 95. This is a list showing all invoices, freight charges, etc., charged during the month by the division stores keeper to the General Stores account. This report will be reconciled in the comptroller's office with the list of invoices actually vouchered during the month, and a notice will be returned to the division stores keeper, who will make the necessary adjustments in his records and com- mence the next month's report with the balance as given by the comptroller's office. STORES— RECEIPT AND ISSUE 209 STORES KEEPER'S RECONCILIATION REPORT THE WESSEX COMPANY Balance on hand first of month Amount invoices passed during the month Total Amount issued during the month Balance on hand end of month Dept. No. Date Vendor Amount Remarks Form 95. Invoices Passed During Month. Size, 8^ X 14. Issue Slips Issuing material is the most difficult part of the work of the stores department. The possibilities of confusion and waste at this point are very great, particularly if the road is organized by divisions and extends through different localities. Every part of the procedure outlined below, accordingly, must be very carefully observed. When materials are wanted from the storeroom by the representative of any department, an issue slip or "Foreman's Requisition for Material" (Form 96) is filled out by the fore- man concerned, signed, and presented to the division stores keeper. These issue slips must in every case be prepared most care- fully. Each day the stores keeper should go over the slips which have been presented and price them according to the unit prices shown on the corresponding stock cards. Care should be taken to have all columns on these slips properly 2IO "OUTSIDE" ACCOUNTING WORK THE WE.55EX COMPANY FOREMAN'S REQUISITION FOR MATERIAL .191- lb Stores Keeper.- Please deliver the following +o bearer Oiarge -to. Form 96. Foreman's Requisition. Size, 7 X 354. tilled out to show not only the quantity, description, and amount of the material chargeable to a certain account, but also the price of each article. If that is done, a representative from the accounting department will be able at any time to check up the correctness of the amount charged against the various operating accounts for material furnished. To illustrate the above, it will not be sufficient for stores keepers to show simply: 3 Brooms 4 l /> tons of Rail $ 75 157.50 But every slip should be completed and carried out as follows: 3 Brooms at 25 cents each $ .75 4^ tons of Rail at $35 per ton 157-50 Another point which must be insisted upon in every store- room is that of having all requisition slips properly signed. Stores keepers should be careful to see that every requisition for material drawn from the storeroom is signed by an authorized party. It would also be a good plan for the various stores keepers to fill out the first two of the blank STORES— RECEIPT AND ISSUE 2 II spaces provided at the bottom of the requisition slips under the word "Delivered" and the words "Prices and Extension Cor- rect." This point need not be insisted upon, but it would be better to have those blanks filled out. Final Disposition of Issue Slips The accounts chargeable should be noted on the issue slips by the foreman requesting the material. The quantities issued should then be posted on the issue side of the stock cards. Each day as soon as all the items on the issue slips have been posted on the stock cards, they should be extended or figured as to total amount. At the end of the month the issues should be sorted as to accounts chargeable and entered on the distribution book or sheets. This may be done during the month, if convenient. The extension of issues, the posting in the distribution book, and the footing of the distribution should be rechecked by a second clerk, if possible. It is essential that the issue slips for each particular lot of material received should be priced at the purchase price of each lot. Assuming that purchases have been received as fol- lows and prices, including freight, were: ioo at $ .10 each ioo " .09 " 50 " .08 " the first hundred issues should be priced at 10 cents each, the second hundred issues at 9 cents, and the next fifty at 8 cents. When a requisition represents a quantity which according to the stock card would appear to be the remainder of one lot and a portion of the next lot, the requisition should be priced and extended at the two different prices and quantities, and entered on the card under the two different lots; a small bracket reaching to the date would indicate that the requisi- tion of that date represented both of those quantities. 212 "OUTSIDE" ACCOUNTING WORK It is very important that the monthly issues and balance be entered on the stock cards as follows: the consumption for the month under the two columns "Monthly Consumption"; and in the last double column under "Month" and "Quantity," the balance on hand at the beginning of the following month. Issuing Material to Other Divisions What has been said refers to material issued by a division stores keeper for use on his own division. It frequently hap- pens, however, that material is transferred from one division to another. Such issues to stores keepers on other divisions will be billed through on the regular manifest (Form 97) and charged to the General Stores account of the receiving division. These manifests are put up in books, four copies to each manifest. Treatment of Manifests The receiving stores keeper checks the original copy of the manifest as a receiving memo; the duplicate he signs and returns to the shipper; and the triplicate he retains as his office record. The signed duplicates returned from the receiving storeroom are taken into the division accounts and sent in with the division stores keeper's regular report. It should be understood that the duplicates sent in should include only those duplicates which were signed and returned to the issu- ing storeroom not later than the second day of the month just closed. All duplicates returned later than the second day of each month are included in the next month's report. This provision is made so that the reports of the issuing and receiv- ing stores keepers will agree. The forwarding stores keeper, upon receipt of the signed duplicate referred to above, will charge the storeroom to which the material was issued. The stores keeper should see that he gets back the signed duplicate within a reasonable time. STORES— RECEIPT AND ISSUE 21 THE WESSEX COMPANY MEMORANDUM WAY-BILL FROM STORES KEEPER TO AGENT FOR MATERIAL FORWARDED ORIGINAL FROM TO FOR — DATE OF WAY-BILL. _ CAR INITIALS _THE_19L CAR NO.. STORE RECORD DATED I9I_ REQUISITION INVOICE 453 DESCRIPTION OF ARTICLES Packages No. of Reqh Weight Quantity INVOICE 453 Received. Stores Keeper at_ ttie 191 _ of the '. : in good order and condition, the articles described above for shipment as indicated. Agent THE WESSEX COMPANY | SHIPPING RECEIPT AND OFFICE RECORD OF WAY-BILL AND INVOICE FOR MATERIAL FORWARDED I DUPLICATE FROM. FOR. STORE RECORD DATED 1_I91_ REQUISITION INVOICE 453 DESCRIPTION OF ARTICLES *** 3 ff s | Reo/n | Weight [quantity | Price | AMOUNT THE WESSEX COMPANY C0MPANT5 INVOICE FOR MATERIAL FORWARDED QUADRUPLICATE Received abw Articles in good order NoteTKs Wank must be filled out and forwarded to tie consignee with each shipment and must be receipted and re- turned by him to the party shipping the material. Note all discrepancies in weight or count in red ink on face of Invoice. We have shipped this day, inyour care, the articles described abo\e 5tores Keeper Form 97. Manifest (in quadruplicate). Size, 8^_ X ?y 4 . Subject matter of triplicate like that of duplicate, heading like that of quadruplicate.) 214 "OUTSIDE" ACCOUNTING WORK No material should be charged to another storeroom until the signed duplicate has reached the issuing stores keeper. The issuing stores keeper will not charge the receiving stores keeper until he has obtained a receipt for the material. He should bear in mind, moreover, that when material is charged to other divisions it should be charged at exactly the same rate at which he charges his own division; nothing should be added for labor or other charges in connection with the transfer, except in special cases of large shipments of rails or similar material. On those divisions which have no storeroom accounts the same procedure will be followed, excepting that the list of material received should show on it the distribution to the proper accounts the same as any other invoice. When issue slips have served their purpose they should be bound or put up in packages and carefully filed. Monthly Reports of Material Issued The issue slips are summarized at the end of each month on large classification sheets (Form 98), under the proper account numbers according to the Interstate Commerce Com- Classification of THE WESSEX COMPANY Month of Nn No No No No No A | f No / ( \ I E Form Classification Sheet of Material Issued. Size. 21 X 16. STORES— RECEIPT AND ISSUE 215 THE WESSEX COMPANY This Report to be mailed to the Comptroller on or before tfie9*of each month Report of Material Issued from Storeroom A+- . Di irinn Mnnth nf NOTE - Details of Accounts marked * should be shown on separa'e report, as per instructions. NO. NAME AMOUNT NO NAME. AMOUNT I - WAY AND STRUCTURES Total Brought Forward 1 Supt. of Way and Structures IV- CONDUCTING TRANSPORTATION 2 Ballast 63 Supt. of Transportation 3 Ties 67A Misc Car Service Expenses Pass. Dept 4 Rails 678 •• •• •• " Express " 5 Rail Fastenings and Joints 69* Station Expenses Pass Dept 6 Special Work 59B • " " Express Dept. 9 Misc. Track and Roadway Expenses 71 Carhouse Expenses 10 Pavinq 72 Operation of Signal S Interlocking App. 11 Cleaning and Sanding Track ~3 " Telephone STelegraph Lines :■? Removal of Snow and Ice 78 Other Transportation Expenses II -MAINTENANCE OF EQUIPMENT V- TRAFFIC 29 Supt. of Equipment 79 Superintendence and Solicitations 30 Passenger & Combination Cars =:> Advertising 30 -OtberDiv 81 Parks, Resorts and Attractions 31 Freight, Express and Mail Cars 8: Miscellaneous Traffic Expenses III- POWER VI - GENERAL AND MISCELLANEOUS Supt of Power Gen'l Office Supp.and Exp Pass. Dept. Fbwer Plant Bldq. Fixtures S Grounds " Express Dept. fbwer Plant and Equipment Misc. Gen'l Expenses Pass Dept. Substation Equipment Express Dept. 58 5ubstation Supplies and Expenses Electric Light Department Gas Light Department Authorisations General Stores, Other Div. C&D. Recollectible Total Carried Forward Grand Total Approved : Correct Manager Storeroom Clerk Form 99. Report of Material Issued from Storeroom. Size.. 81/, X 14. 2l6 'OUTSIDE" ACCOUNTING WORK mission's uniform system of accounts. A small columnar book may be used instead of the classification sheets. As soon as these sheets are totalled for each month, the figures are drawn off on the monthly report of materials issued (Form 99), which should be forwarded promptly to the comptroller's office, as called for on the form itself. This form is printed in copying ink so that an impression copy can be made. On it should appear the total amount of issues from the division storeroom. It will be noted that wherever any of the accounts are subdivided or are charge- able to other divisions, they are marked with a star. All such accounts should be shown in detail on Form 100. Here should THE WESSEX COMPANY pofail nf ^nrprnnm Pppnrt - Vlnn+h FnHinq Division . - r Total Amount I U- 1 — ~~ ' — ' — ) Approved: C orrect Storeroom Clerk Form 100. Detail Report of Material Issued from Storeroom. Size, 8y 2 X 14. appear the number and name of the account chargeable and the name of the division; the amount chargeable to each divi- sion should be entered in one of the short columns, carrying the total for each division out into the last column. If this is done the amounts appearing in the column headed "Total Amount" on Form 100 will equal the amounts appearing under the respective accounts on Form 99 which are charge- able to other divisions or to the subdivided starred accounts. STORES— RECEIPT AND ISSUE 217 Shop Orders At times material is received for which it is necessary to complete certain unfinished work in one of the shops. It is important that such work be done on a shop order, the charges to be entered on the copy and the total when completed entered on the stock card. Form 10 1 shows such an order. THE WESSEX COMPANY ORIGINAL SHOP DPDFP NO Mr 19 Plca=,f a=i FolloWS: ' — ~- ' n a=a OATF CnMPl FTFD iNvnirF no MATERIAL LABOR Description Date Ticket No. On Dept. Quanfy Amount Date Ticket No Hours Amount Total , ■ 1 1 = THIS COPY TO GO TO THE RDREMAN PERFORMING THE WOR* Form 101. Shop Order. Size, 8 J / 2 X 16. These orders should be numbered and prepared in quadru- plicate. The original is given to the division manager ; the trip- licate to the master mechanic ; the second and fourth copies are retained by the division stores keeper. When the order has been rilled the master mechanic should return his copv, show- ing the cost of the labor. To determine the unit price the cost of materials is added to the cost of labor and the number of items divided into the total. Upon the completion of the work these entries should be made on the stock card: (1) made on 2l8 "OUTSIDE" ACCOUNTING WORK shop order No ; (2) date received; (3) quantity; (4) price per unit. The shop order should then be filed. Issuing Material to Outsiders Where material is sold to other companies or to outside parties, as sometimes happens, it is desirable to render bills promptly. Information should be furnished the comptroller's office, therefore, in a report on the 7th, 14th, 21st, and last day of each month, on Form 102. This detail report should give a list of the charges that the division stores keeper has to pay and sufficient detail to enable a bill to be rendered intel- ligently in the comptroller's office, supposing the work to have been finished. After each item notation should be made to indicate whether the bill is final or not. A copy of this report should be retained in the office of the division stores keeper. At the end of the month when the regular storeroom report (Form 99) is sent in, it should show in the lower right-hand corner under "C. & D. Re-collectible" the total of the four period reports on Form 102 that have been sent in during the month, which will be credited in the comp- troller's office in the usual manner to the General Stores account, that is, as the bills are made up. THE WESSEX COMPANY Detailed List Charges - Week Ending Division To+al Amount Approved: C orrect: 5tores Keep* Form 102. Charges for Material Issued to Outside Parties. Size, 8y 2 X 14. CHAPTER XIV THE STORES DEPARTMENT — CARE OF STOCK AND INVENTORIES Care of Material in Stock This matter is almost as important and as full of possible difficulties as the procedure with regard to receiving and issu- ing of material, particularly in a road organized by divisions, where from the necessity of the case purchases cannot all go through the one general storeroom. In the first place it is a very useful practice for division stores keepers to make a periodical test, checking all stock on hand with the balances as shown at the end of the month on the stock cards — that is to say, a sort of informal inventory. It would, of course, entail much time and work to try to check up the entire stock-room. The stock cards, therefore, should be divided into three or four lots, according to the size of the division, checking one lot one month, the second lot the next month, etc. Not infrequently there will be cases where material has been issued but returned to stock later on as fit for further use. When material is to be so returned to the storeroom, a credit slip or memorandum (Form 103) should be used. These slips should then be posted on the stock cards as a credit to material issued, and should show as a credit on the monthly classification or summary of issues. If the material to be taken back into stock consists of a large quantity, or if it is material left over from an authorization job (see page 229), a report should be made out and forwarded to the comptroller, 219 220 'OUTSIDE*' ACCOUNTING WORK THE WESSEX COMPANY FOREMAN'S SCRAP AND UNUSED MATERIAL CREDIT TICKET 19.... TO STORES KEEPER: Quantity 4) Description c Weight or Measure Price Amount 09 z ■a c o V CO o Z o Q Received: Prices and extensior s correct: Signed: Foreman. Form 103. Scrap Credit Ticket. Size, 7 X 2 T A- showing quantity, description, and the proper account to be credited. It is desirable that the division stores keepers make an investigation each month to locate any such material that the foreman may have overlooked. A credit memorandum should be filed with the issue slips at the end of each month. Care of Material Outside the Storeroom It is a well-known fact that stores keepers encounter more or less trouble in keeping accurate record of the larger mate- rials, such as ties, rails, poles, etc., used by the track and line service, and of the material purchased for authorization work, which is often kept outside the storeroom. The stores keeper is more or less obliged to accept the issue slips turned in by the different foremen covering material used each day as being correct, when often they are not correct; and incorrect CARE OF STOCK— INVENTORIES 2 2I charges are accordingly made to the several classes of mate- rial, and frequently to operating expenses or to authoriza- tions. As a result, large adjustments must be made at some later date when the discrepancy is discovered, and in many cases after the authorizations have been closed. To lessen this difficulty the stores keeper should inventory material of this nature on the 31st of October each year. This day practically terminates the season when most of the work in which this material is used is done and the supply of such materials will be at its lowest. These inventories may then be compared with the stock card records and any differences investigated and adjusted. Freight Bills Stamped by Stores Keepers In order to be uniform in the method of indicating on freight bills sent to stores keepers the information needed to determine the disposition of the charges in the accounts, the instructions of this and the following section should be observed. The freight bills are sent from the comptroller's office to the stores keeper, so that he can indicate on the back of the bill the account chargeable, the order and requisition numbers, the name (and address, if "re-collectible") of the shipper, the terms under which the material was ordered, that is, "Point of Shipment" or "F. O. B. Destination," and also in what month the bills are to be taken up. In cases where shippers should have paid the freight on some goods consigned to the company but neglected to do so, the stores keeper is required to mark on the back of the freight bill the name and address of the shipper, so that a bill can be made out and the amount due for freight charges can be duly collected. The stores keeper should be provided with three stamps reading "Point of Shipment," "F. O. B. Destination," and 222 "OUTSIDE" ACCOUNTING WORK "Invoice Not Received." After comparing the freight bill with the original invoices, as all indorsements are to be made on the strength of the original invoice only, he should mark them with one of these stamps. In no instance are freight bills to be held over ten days. If it is found after a lapse of ten days that the original invoice has not been received, the freight bill should be stamped "Invoice Not Received." It is not necessary to mark the bills as chargeable to some outside party, as the comptroller will bill the shippers on all freight bills stamped "F. O. B. Destination." There are times when a consignment is sent forward and terms are "F. O. B. Line of Road." In any such instance the freight bill should be marked accordingly and the place given as the same from which the shipment originated, in order that the comptroller's office may know just how to handle the freight bill. In order that the local stores keeper's report of freight bills charged to General Stores account during a certain month may correspond with the records in the comptroller's office, the comptroller should arrange to send him a list on the first day of each month, showing the numbers on freight bills charged to General Stores account during the previous month. The stores keeper should keep a record of all freight bills passed, and thus it will not be difficult for him to ascertain the total amount of freight bills to be taken into his General Stores account each month. When to Charge Transportation, Etc., to General Stores Bills covering freight charges, cartage, etc., and pay-roll charges covering any loading, inspecting, and handling of materials and supplies for general stores, should be charged to General Stores provided the amount is sufficient to increase the unit price of the material by at least one cent. When the amount is not sufficient to increase the unit price by one cent, CARE OF STOCK— INVENTORIES 223 the bills and pay-roll charges should be charged to those operating expense accounts which are most likely to be affected by the material in question. The bills covering freight and cartage should be approved by the division stores keeper when charged to General Stores and by the division manager when charged to Operating Expenses. Charges from the pay-roll should be arranged for with the division stores keeper in advance so that he may determine whether or not they should be charged to General Stores. Stores keepers should be advised promptly each week of the amount charged to General Stores by any person who has been authorized to make such charges. When more than one kind of material is being handled, the party advising the stores keeper should state how much is charged to each kind of material. The division stores keeper should add the various items referred to above to his unit price of material, and when issu- ing that material or making an inventory of it, should report it at a price which includes invoice price, freight, cartage, and labor — that is, inspecting, loading, etc. — in accordance with the above plan. The freight and cartage bills when charged to General Stores will be included in the list of invoices passed in the usual way, each bill being listed separately so that it can be returned for checking up in the comptroller's office when the "reconciliation report," or summary of debits and credits against the storeroom, is made up. The labor charges are included in the list of invoices passed as pay-roll charges. Report of Scrap Accumulated A very important matter is the disposition of scrap, that is to say, material which cannot be utilized again. With a large 224 "OUTSIDE" ACCOUNTING WORK THE WESSEX COMPANY REPORT OF OLD MATERIAL No 191.... To the General Stores Keeper: Sir: — The old material below named we have no use for in this department: Previously Reported No Disposition Received Additional Accumulations This Month Description of Material Where Located Date | Quantity (Signature ) (Official Title) Note — Reports will be made on this form only by Heads of Departments, or such officers as they shall designate, and must be forwarded on the first of each month, and at no other time during the month, unless unavoidably necessary. The quantity, kind of material, and where located should be fully and definitely stated. Approved Form 104. Division Report of Scrap. Size, Sy 2 X 11. street railway company there will be a very considerable amount of such scrap material which is collected, accounted for, and sold once a month or so for what it will bring. It should be reported by the division stores keepers to the gen- eral stores keeper once a month on Form 104, "Monthly Scrap Report." This report is prepared in duplicate ; the original is forwarded to the comptroller and the duplicate is retained for the division stores keeper's files. The report should show the quantity (estimated if not known) of every kind of scrap CARE OF STOCK— INVENTORIES 225 material accumulated during the month and received from other divisions. From this total the amounts sold and trans- ferred during the same period should be deducted, leaving the balance on hand as of the last day of the month. The prices at which these reports will be figured are furnished by the gen- eral stores keeper monthlv. Each item should be extended so as to show the total estimated value of scrap accumulated dur- ing the month, regardless of whether it has been shipped to the general stores keeper, or sold to outside individuals, or is still on hand. It should not include any scrap listed on the previous month's report. On the same report a detail should be shown of the scrap accumulated and the scrap received from other divisions dur- ing the month as follows: Kind of Scrap Amount Tons or Pounds Price Per Ton or Pound Total Value Credit Division Account Remarks The quantities collected should be determined by actual weight as far as possible, especially in the case of scrap cop- per or brass. Scrap iron and steel as a rule must be estimated. Great care should be exercised to obtain as nearly as possible a correct figure, thus reducing to a minimum the amount of adjustment needed after each particular lot is sold. One of these reports should be sent in each month by every division stores keeper, whether any scrap is accumu- lated or not. All information called for on the blank should be furnished and, if anything is not clear, it should be taken up with the comptroller's office. A report should be made as soon as possible after the first of the month, and received at 22 6 "OUTSIDE" ACCOUNTING WORK the main office not later than the tenth of the month. (For further discussion of the treatment of scrap,, see Chapter XVIII.) Inventories The subject of inventories might be treated at length. There are many varying ideas in regard to the relative merits, for example, of perpetual or running inventories as compared with periodical inventories. No one disputes, however, that an inventory of all materials and supplies, in fact, of all movable things, should be taken at least once a year. This matter will be treated further in connection with Chapter XXIV. For the purposes of this book the periodical inventory will be the only one discussed. The following outline contains the substance of instruc- tions from the comptroller's office to the division stores keep- ers as to the methods to be observed in taking the annual inventory of general stores of materials and supplies: i. Inventories of all materials and supplies, including not only the storeroom stock and the stock of rails, ties, etc., car- ried outside, but also an inventory of spare equipment stock and spare material in the shops, should be taken on a certain date. 2. The inventory will be made up on Form 105. Mate- rials will be inventoried in their regular classes in accordance with instructions issued by the general stores keeper. The inventory must be taken by actual count, weight, or measure, and must be a complete survey of all materials and supplies. The general inventory above described should not include spare equipment, i.e., stock which has been charged out but not yet used, or second-hand equipment, i.e., scrap. Inventories of these two kinds of material should be taken on separate sheets and not mixed in any way with the inventory of the regular stock. CARE OF STOCK— INVENTORIES 227 THE WESSEX COMPANY Sheet Net .W^nWy /-if M»+^riak anH Supplies on VwdH 191 Department Division CLASS OF MATERIAL AND DESCRIPTION QUANTITY UNIT PRICE AMOUNT TOTAL 1 Certified to be a true and correct Inventory Footings not to be carried forward Form 105. Inventory Form. Size, 8^2 X 11. If possible, all inventories should be typewritten and two copies made; the original should be sent to the comptroller's office and the carbon retained by the division stores keeper or sent to the general stores keeper as instructed by him. 3. All materials noted on Form 93 as having been received prior to the date of the inventory, but for which no invoice has been received, should be listed on separate sheets and marked "Exhibit B." This exhibit should show the date when each article was received, where from, the quantity, description, price, and account. 4. All material in transit at the end of the month, from another storehouse or division, should be taken into the accounts for that month and included in the inventory. 5. All reports of inventories should be received in the comptroller's office within two or three weeks. Extra help will be provided, if necessary, to insure the inventory being sent in on this date. All applications for such extra help 22 g "OUTSIDE" ACCOUNTING WORK should be made direct to the comptroller. Inventories should, of course, be forwarded as soon as completed and as much in advance of the date specified as possible. 6. Each inventory must be signed personally by the party taking it, and certified to by the stores keeper of the division where the inventory is being taken. The division stores keeper will also sign a regular certificate which will be pro- vided from the main office. 7. As for the inventory of spare equipment and second- hand material, it would seem best to have that taken by the master mechanic and then priced and typewritten by the divi- sion stores keeper. The inventory of scrap material, how- ever, should be taken by the division stores keeper. 8. The report of the division stores keeper showing the invoices taken into stock, and the storeroom balance for the month in which the inventory is taken, should be held until about the 10th of the following month, then completed and mailed to the comptroller's office. This will greatly assist the comptroller's office in checking the material shown on the inventory for which invoices have not yet been received there. 9. A representative of the comptroller's office will be on hand to advise and assist in taking the inventory. CHAPTER XV ADDITIONS AND BETTERMENTS Necessary Records Every street railway does a great deal of work in the way of extensions and improvements or, to use the phrase of the Interstate Commerce Commission, "additions and better- ments." The company is constantly relaying track, rebuilding overhead work, remodelling car houses and power stations, and purchasing new equipment in order to keep the property in good condition and to utilize the latest methods. When a piece of track is removed it is usual to put in a better and heavier rail; when a power station is remodelled, to put in more modern machinery. As a general thing, the difference between the cost of the old and the cost of the new is charged to "Additions and Betterments." It is very important, there- fore, to have a thoroughly good cost system, or, as it is usu- ally called in the street railway business, an "authorization system," so that nothing chargeable to Extensions and Im- provements is charged to Operating Expenses, and vice versa. Complete records should be kept at all times so that infor- mation as regards cost per mile of track, costs of overhead or equipment work, etc., for either current or former years, can be obtained on short notice for the officers of the road or for commissions. All extension or improvement work must accordingly be covered by properly approved authorizations. Authorizations By the word "authorization" is meant definite written instructions from the proper officials of the road to do certain 229 230 "OUTSIDE" ACCOUNTING WORK things. Authorizations are prepared in the office of the engi- neer in charge of power and equipment, or of the engineer in charge of construction, or by the maintenance engineer, as the case may be, and are approved by the president and board of directors. The work may be done either by the engineering force of the company itself or through outside contractors, but it is under the supervision of the company's engineers and in some cases also under the supervision of the manager of the division where the work is done. The authorization system serves two purposes: In the first place, by insisting that no construction expenditure be under- taken without an authorization it insures that all such expendi- tures involving a question of policy are approved by the offi- cial who directs the policy of the road. His approval means that he has authorized not merely that a certain amount of money be expended, but that a certain undertaking shall be carried on as nearly as possible at an estimated cost. In the second place, it enables the accounting department to group readily all the expenditures under each different undertaking so that the records may show exactly what each undertaking costs. Thus it aids in preventing improper charges being made to construction. Definite Limitations An authorization covers certain specific things which it is estimated will cost a certain amount of money. An authoriza- tion, say for $10,000, for double-tracking a certain line, should not be charged with any expense for relaying the existing single line unless the authorization stated that the existing line was to be relaid. When the division manager is requested by the engineers in charge to do certain work under the authorization, charges are accepted for that work subject to the engineer's approval. The division manager should not undertake to do any work ADDITIONS AND BETTERMENTS 231 or make any charges against an authorization outside of the work he has thus been requested to do without submitting the matter to the engineer in charge for his consideration. When a new line has been built and the division manager believes that some tools or other facilities should be furnished, he should first ask the engineer if the authorization provides for them. If not, he should request a new authorization for what he needs. The engineers are held responsible for the expenditures under an authorization and in justice to them no charges should be made without their approval. Authorization Material Invoices covering material which has been taken into Gen- eral Stores account and which it is not proposed to use imme- diately, even though it is intended for use under an authoriza- tion, should be handled by the division manager, charged to General Stores, and forwarded to the comptroller's office. The engineer who has charge of the work, however, should be informed that this material has been received. The stores keeper should send a memorandum at the end of each month to the official in charge of each authorization, giving the amount charged against that authorization for material issued from stores during the month, also stating the number and title of the authorization and the amount charged to each account under it. With this there should be a list showing what the material consisted of. This applies to all authorizations which are under the care of any of the engineers. Pay-Roil Charges Charges from the pay-roll in connection with authoriza- tions should be charged on the pay-roll distribution in the usual way (see page 192). A report should be made each week to the official in charge of the authorization, showing 232 "OUTSIDE" ACCOUNTING WORK the amount charged from pay-roll distribution against that authorization, the number and the title of the authorization, and the amount charged to each account thereunder for that week. The nature of the work done should be stated also, not necessarily giving the names of the men, the rates, and amount of pay, but stating briefly what work the charges represent. For instance, if the work happens to be hauling rails, the amount should be charged to the proper account sim- ply as hauling rails to such and such a point. The engineer supervising the work can thus pass intelligently on the charges. In reporting charges against authorizations to the comp- troller's office, both number and title should always be men- tioned, otherwise there is chance of serious error. THE WESSEX COMPANY .191. To Be Accompanied By Detailed Estimate and Sketch on Face of Form or Separate Plan of Proposed Improvement. Department No Comptroller's No Authority is asked for the expenditure of $ on the following work. Title Location Description Necessity for proposed work. (State Saving in Dollars, Etc., as Far as Possible) Charge to other corporations and individuals Maintenance Engineer Chief Engr. of P. and E. Manager Approved for $. Construction Engineer Board Vice-Pre«. and G. M. President DISTRIBUTION OF CHARGES Additions and Betterments Equipment Operating Expenses Accounts Receivable Suspense (to be determined later) , TOTAL .191. .Comptroller Form 106. Authorization Blank. Size, 8^2 X 13. ADDITIONS AND BETTERMENTS 233 Preparation of Authorization Forms For all work in the way of additions and betterments a regular authorization blank should be prepared, such as Form 106. This form, with its attached papers, should be prepared in the following manner: 1. Every improvement form should show clearly on its face the total estimated cost of a proposed undertaking: the title of the job; the location, with the name of the town, city, or borough ; and a brief description of what is to be done. All the information called for on the form should be given in every instance. 2. Every improvement form should be accompanied by the following data on sheets of the same size as the forms : (a) Total estimated cost of the work, including inciden- tal expenses classified as follows: Incidental expenses according to classification of operating expenses. Balance of cost according to classification of construction and equipment expenditures. (b) Estimated length of time necessary to complete the work. (c) Statements showing the method of distribution, indi- cating the amount charged to additions and bet- terments and what it consists of, and a similar statement for amounts charged to operating expenses. This is to enable the distribution to be checked intelligently and should be so prepared that it will disclose exactly how each feature of the proposed work has been treated in the distribution. Four copies of each of the statements mentioned in 2 (c) above should be prepared, showing the title of the authoriza- tion and signed and dated by the official preparing it. 234 "OUTSIDE" ACCOUNTING WORK 3. Estimates for authorizations should be classified according to the rules for Additions and Betterments accounts set forth in the Interstate Commerce Commission's "Uniform System of Accounts for Electric Railways." 4. The Additions and Betterments account referred to in the preceding paragraph should be charged with additional structures, facilities, or equipment not taking the place of any- thing previously existing, and with the enlargement or improvement of existing structures, facilities, or equipment, or the proper portion of the cost of new structures or facilities of an improved or higher class that replace others previously existing. 5. Operating Expenses as referred to in paragraph (2) should be charged with the incidental expenses in connection with the work, such as keeping tracks in repair and in condi- tion for handling the traffic during the progress of the work (including the cost of protecting traffic while passing over the tracks) ; moving and relocating telephone or telegraph poles and other structures; and with the original cost, estimated, if not already known, of the structure or facility replaced or abandoned. Treatment of Salvage Material 6. The estimated amount of salvage represented by scrap material or second-hand material returned to the storeroom should be stated as a footnote, but the authorization should be for the gross expenditure and the distribution should be prepared on the assumption that there will be no salvage. The salvage is all to be credited to the proper operating expense accounts direct and not through the authorization. 7. In the case of power plant and other machinery replaced under an authorization and retired from service, when the old machinery is still serviceable and fit for use its estimated present value should be charged on the distribution ADDITIONS AND BETTERMENTS 235 of the authorization to an account which is described as the "Replaced Machinery Stock" account (see page 280). A statement should accompany the authorization, enumerating each item of machinery, describing it so that it can be readily identified, and stating the estimated value of each machine. When the machinery is actually released from service and stored and held for future use or for sale, a report of that fact should be made to the comptroller, stating the date when it was retired from service, the place where it is stored, and in whose custody it is held. Leased Properties 8. If the company should operate leased properties as well as owned properties, the improvement forms covering the work done on property operated by the company should be divided into classes. Supposing for illustration that there are three leased lines, the improvement forms might be classified as follows: A covering property owned by the (operating) company B " " " " " (first leased) " C " " " " " (second " ) " D " " " " " (third " ) " E all equipment Separate forms should be used so that no authorization will include the work of more than one class, if it can be arranged. 9. In preparing the distribution for the improvement forms, all amounts properly chargeable to construction or improvement account should be charged as follows: "Additions and Betterments, The Company." This account should include all extensions, addi- tions, and betterments made to the property owned by The Company. 236 "OUTSIDE" ACCOUNTING WORK "Additions and Betterments, The Company." This account should include all extensions, addi- tions, and betterments made to the property of The Company which is operated by the .... Company. "Equipment." This account should include all additions and betterments made to the equipment operated by The .... Company. Notices to Interested Officials After the authorization blank reaches the comptroller's office, notices should be sent on Form 107 to the officials interested. THE WESSEX COMPANY OFFICE OF THE COMPTROLLER Requisition No. Date Authorization No. Date Mr. Dear Sir: You are hereby notified that Requisition for a Special Authorization (your No. ) to be used in the following Improvements, viz: Has been Approved by the Proper Officers in the sum of $ Chargeable as follows: To Operating and Expense $ To Equipment $ To Additions and Betterments The work to be done by Under the Supervision of Charge all Expenses to Comptroller's No. Title of Authorization In reporting to the General Office, the Comptroller's Number and the title of the Authorization must be given in every instance and charges subdivided in accordance with Regular Classification. Comptroller. Form 107. Notice of Approval of Authorization. Size, 8^2 X g l / 2 . ADDITIONS AND BETTERMENTS 237 Distribution of Charges As just explained, authorization blanks will show the dis- tribution of charges to either "Additions and Betterments" or "Additions and Betterments" and "Operating Expenses." If the distribution is entirely to Additions and Betterments, the monthly expenditures are distributed on the regular authoriza- tion ledger to "Construction Work in Progress." If the dis- tribution of an authorization is partly to Additions and Better- ments and partly to Operating Expenses, the expenditures for the month are divided proportionately between the above accounts. "Construction Work in Progress" is an account where all charges to additions and betterments may be placed until the completion of an authorization. As soon as the job is com- pleted an entry for the general journal should be made, charg- ing Additions and Betterments — Authorizations, and credit- ing Construction Work in Progress. Then the charge to Addi- tions and Betterments should be distributed to the various subaccounts in the regular construction ledger. The construc- tion ledger should be so arranged that all expenditures may be classified as between the various construction accounts and so summarized that information can be obtained at any time as to the total additions and betterments by divisions, by con- struction accounts, or by years. Incidental expenses in connection with authorizations, such as keeping tracks in repair and handling the regular traffic of the road during the progress of the work, including the cost of protecting street traffic while passing over the tracks, should be charged to the authorization, but subdivided accord- ing to the classification of operating expenses. Work done by the operating department for the construc- tion department which is not in connection with the operation of the line at all, should be charged to the authorization and classified according to the construction classification. 238 "OUTSIDE" ACCOUNTING WORK In other words, everything chargeable to the authorization except incidental expenses should be classified according to the construction classification. Incidental expenses, that is, those expenses which during a reconstruction job would be unneces- sary if the cars were not operating, but which are necessary because the cars are being operated during the progress of the work, should be charged to the authorization and classified according to the operating expense classification. Authorization Ledger A ledger should be provided somewhat like Form 108. During the current working period all amounts chargeable to an authorization for new work should be posted daily to this ledger from the vouchers and journal entries as they come through. Great care should be taken with regard to the infor- mation in the "Particulars" column. The explanation must be made perfectly clear, so that anyone will know exactly what the charge is for. When all the charges are in for the month they should be footed and an entry made up for the general journals charging the proper accounts and crediting the account "Authorizations for New Work." This account in the general ledger should exactly balance when this entry is posted. If it does not, the bookkeeper should immediately run down the difference. While making up the journal entry a number of ques- tions will probably present themselves, regarding which the clerk in charge should apply to the chief clerk. One rule, how- ever, that may well be followed is this: When the amount expended under an authorization exceeds the amount pio- vided, all the excess expenditure should be charged against Additions and Betterments. In other words, in distributing the expenditures under authorizations between Additions and Betterments and Operating accounts, divide the expenditures, so far as the authorization goes, on a percentage basis, charg- ADDITIONS AND BETTERMENTS 239 z z N CI HJ 2 Z O in > U- UJ a- O 2 S O LU g E < UJ 1 UJ < 2 U- > a: zr in I i S 2 4 "OUTSIDE" ACCOUNTING WORK ing to Operating Expenses the amount called for on the dis- tribution, but all excess expenditure to Additions and Betterments. Authorization Ledger Transfer Books When authorizations are completed they should be trans- ferred from the current working authorization ledger to a transfer ledger. If there is a difference of more than 10% between the estimated amount and the amount expended, an effort should be made to get in touch with the engineer so that the authorization can be held open, if necessary, even though the work has been completed. If the difference between the estimate and the actual cost is within 10%, the authorization can be marked complete and so reported on the authorization statement at the end of the month. Material differences should be taken up immediately with the chief clerk so that any necessary adjustments in the accounts can be made as early as possible. After authorization sheets are put into the transfer ledger no charges should be made to the different authorizations unless the charge clearly shows that it is for an old bill or something which should have been charged while the authorization was active. Regular invoice-size scrap-books make the best authoriza- tion books. In these the various authorities should be fastened in numerical order. The authorization number and title should show clearly at a glance. These books, of course, should be kept closely up-to-date. Additions and Betterments Ledgers Ledgers showing the regular additions and betterments accounts should be provided, to be written up each month and balanced with the Additions and Betterments account as shown on the general ledgers. If the road has leased proper- ties, similar records should be kept for those. ADDITIONS AND BETTERMENTS 241 Authorization Index This index should be written up immediately on receipt of any new authorization instructions. The index should be care- fully divided and subdivided, according to the different com- panies (if there is more than one company), and according' to departments, also, and to divisions. The clerks should be cau- tioned to index immediately upon receiving the numbered authority. Charges Against Other Companies It may sometimes happen that an authorization has to be made up in connection with power station work, which is to be paid in part by the operating company and in part by some other company. A good general plan to follow in such a case is to have the authorization made in the name of the company which is bearing the major portion of the expense and to handle the amount chargeable to the second company through a bill or charge account. When the proportion collectible from the second company is small, the simplest way to handle the matter is to wait until the authorization is completed before billing the second com- pany and then to make a bill for the full amount. Certain authorizations, however, may involve heavy charges against the second company, charges which sometimes must go to that company's "Operating Expense" account. In such cases it would be best to prepare a bill each month. The matter should, of course, be determined in advance in every case. The second company is not usually billed with a propor- tion of every expenditure on the authorization, but merely with its proper proportion of the expenditure under those accounts by which it is affected. In order that the second company may keep a record of the expenditures, a memorandum sheet may be opened in its own authorization ledger, if this is kept in the office of the 242 "OUTSIDE" ACCOUNTING WORK operating company. In this ledger the authorization number is recorded and the amount of the bill from the operating company is also given and distributed like any charge to the authorization. A memorandum should be prepared for all such authorizations, showing the proportion of each account which should be charged against the second company. There may be other authorizations the expenditures in connection with which are to be re-collected from some other source, either from a city or town, or from individuals. A bill should be made as soon as the authorization is closed unless there is some notation to the contrary. Completed Authorizations When authorizations are physically complete the comptrol- ler's office should be notified by the proper person. Then, after the engineers have been consulted to make sure that all bills are in, the authorization may be closed. After all charges are in, the total expenditures by construction account num- bers should be submitted to the engineer in charge, who will, if necessary, make a redistribution of the exact expenditures, which may differ quite a good deal from the original estimate. It frequently happens that expenditures of an incidental nature are made by engineers and charged against authoriza- tions which have been reported closed for some time. If the expenditures have nothing to do with the construction, but have to do with repairs or up-keep and arise entirely from the operation of the road, they should certainly not be charged against the authorization, but against maintenance. This rule should hold regardless of whether the expenses in question have been incurred by the maintenance authorities or by the construction engineers. It makes no difference who incurred the expenses. If they are a proper construction charge, they should be placed to the construction account with- out any reference as to who incurred them, and vice versa. ADDITIONS AND BETTERMENTS 243 Belated Bills — When Chargeable to Authorization When an authorization is "closed" on the books, this is done merely to get a piece of work which is no longer in prog- ress off the current statement. It is a fact well known that in many undertakings it is almost impossible to determine posi- tively when all the charges against an authorization are in until a long time after the work has been completed. In the interest of convenience it is the practice to report the author- ization completed when, in the opinion of the engineers, the charges are all in. If subsequently some belated bills are received, the fact that the engineers have reported the authorization completed should not make it seem necessary to the accountant to handle those charges improperly in the accounts. If the charges had been received before the engineer reported the authoriza- tion as closed, they would have been charged against it without any question and would have gone to the construction account. If they are proper construction charges, they should still go to the authorization and then to construction. It is not fair to burden operating expenses with improper charges simply because the bills were late in getting in or because some matters were overlooked or forgotten. The engineer or manager who has jurisdiction should state why the charge is being made after the authorization has been closed, and should give all details to show that such charge is correct. The correspondence should then be placed on file. New Construction — Need of Careful Records Strictly speaking, the subject of new construction as dis- tinct from the improvement and enlargement of existing property is outside the scope of this book. Building a new street railway is much like other construction work. The accounting problems which it presents are quite different from those with which the accounting department of a street rail- 244 "OUTSIDE" ACCOUNTING WORK way has to do once the road is organized and is in operation. It cannot be said too emphatically, however, that in any new construction work complete and clearly intelligible records should be kept in the interest of the road's future. If in the past the owners and organizers of street railway companies could have realized that adequate construction rec- ords would become valuable assets in later years, less money would have to be spent today in appraising street rail- ways and in searching records for information which should have been written up in proper construction records when the various properties were being built. Large sums are fre- quently spent in looking up old matters which should have been recorded definitely in the first place; and it is apparent from the condition of such scanty records as are available today that the builders of the street railways seldom realized the importance of this matter. The Interstate Commerce Commission in its system of uni- form accounts for electric railways has prescribed a very good system of road and equipment accounts, which should be fol- lowed in new construction work. While the accounts and records needed for new construc- tion work present no special difficulties of form, it is essential that they should be both complete and readily intelligible. The minutes of board meetings should be given to show the organ- ization of the company. All engineering records should be carefully preserved and, in particular, the record of any expenditures for tentative or preliminary surveys. Some spe- cial pay-roll records or accounts with contractors employed to build the road are useful, but no special construction rec- ords need be kept outside of a good journal, ledger, cash book, and voucher record or voucher journal. CHAPTER XVI MISCELLANEOUS WORK IN OTHER DEPARTMENTS The Operating Department — Division Managers A large number of reports come to the comptroller's office from the division managers, the local representatives of the operating department Some of these reports have been treated elsewhere in connection with the passenger service, express and freight service, the pay-rolls, stores, and addi- tions and betterments. Among the other reports made by the managers, those which concern the supply of fuel, oil, and the output of power should be mentioned here. Monthly Report of Coal Consumption The managers should make a careful report monthly of the amount of coal received and consumed at all power stations on their divisions. For this Form 109 should be used. This form calls for comment as to certain points. 1. A separate report should be made for each power sta- tion on the division, each one to be headed with the name of the station and the name of the month in which the report is made. If two kinds of coal are used at the same station a separate report should be made for each. 2. The figure to be inserted in the line "Amount on hand first day of month" should give the quantity of coal on hand as reported by the manager on his previous month's report, unless that figure has been adjusted by instructions from the comptroller's office as explained in point 7 below. 245 24-6 "OUTSIDE" ACCOUNTING WORK THE WE5SEX COMPANY TTils Report to be mailed to the Comptroller on the 4* of each month. MONTHLY FUEL REPORT Name of Station . Month of_ Amount on hand first day of month " received during the month (see below) Amount used during the months Total. for ft>v»er Purposes for Shop Use . For Heating Carhouse. lbs Amount on hand last day of month Remarks Amount on hand last day of month, as per actual measurements attached. COAL RECEIVED Date Unloaded Caror Barge Initial Weight - Lbs Coal F.O.B. Shipper Kind of Approved; Engineer Form 109. Monthly Fuel Report. Size, Sy 2 X 15. 3. The figure to be inserted on the line "Amount received during the month" should be the total of the detailed report below as explained under comment 8. The total of these two figures shows the amount of coal to be accounted for. 4. Under the heading "Amount used during the month" should be entered the amount of coal used or removed from the power station, not only the coal used for power purposes but that which is sent to repair shops for use there and that which is sent to car houses for heating purposes. In this case, of course, the name of the car house should be specified. Coal used for other purposes than these should be entered on one of the blank lines below with particulars as to its use. OTHER DEPARTMENTS 247 The above amounts are entered on the first column which is totalled and the total carried over to the second column. This amount deducted from the total to account for gives the balance of coal on hand on the last day of the month. 5. The heading "Remarks" is intended for any informa- tion concerning the above items which the manager thinks should be noted. 6. Measurements of the coal piles should be taken and the quantity of coal on hand represented by those measurements should be calculated and entered on the line "Amount on hand last day of month, as per measurements attached." These measurements must be taken according to the instructions covering the matter ; that is, obtain the cubic con- tents of the bin or coal pile and then consider that there are 38.6 pounds to the cubic foot. All working papers, together with a sketch of the coal pile, should be sent in with the report. The managers should see that coal piles are kept so far as pos- sible in regular shape through the month to facilitate measur- ing them. 7. These sketches and calculations are checked in the comptroller's office and, if any adjustment in the accounts must be made, the manager is notified of that fact and given the corrected amount of coal on hand; with these figures he starts his next month's report. 8. Under the heading "Coal Received" an itemized record should be given noting in every case the date unloaded, the number and initials of the car or barge, the weight in pounds, the kind of coal, f. o. b., and the name of shipper. The four columns at the right should be left blank as they are for the use of the comptroller's office. The column "Weight, lbs." should be totalled and should agree with the item "Amount received during the month" referred to in paragraph 3 above. Coal from a partly unloaded car or barge should not be included in this report of coal received, but should be reported 248 "OUTSIDE" ACCOUNTING WORK after the car or barge has been unloaded, as neither the comp- troller's office nor the power engineer has any record of coal being received until the car or barge is entirely unloaded. Managers should try to unload their coal entirely by the end of the month. 9. The report should be signed by the engineer and approved by the manager. In this connection there are the reports of expense for delivering coal to power stations. Under this head should be included not merely the ordinary cartage from docks or rail- road yards, but also the cost of getting the coal where the fire- men can use it, whether the charge comes from contractors hired to perform the work, or from company employees. For example, if coal is unloaded from a company dock or from cars on the company tracks, and placed in a pile, say 200 feet from the power station, laborers must be employed to wheel the coal from this pile into the power station bins or where the firemen can get the coal. Such labor is a portion of the expense of delivering coal, and should be charged to the Fuel Inventory account. There are also times when the coal pile requires .trimming and any expense for this work should also be charged to the Fuel Inventory account. Power Station Output From each division a report of the output of all power stations on that division is sent in monthly on Form no. The first line should be filled out with the name of the division and the date. On the next blank line the names of the differ- ent power stations should be written. If there is a central generating station and a substation, the word "substation" should be written after the name of the latter. In the proper column the total output of the stations and substations in kilo- watt-hours for the month should be entered. OTHER DEPARTMENTS 249 THE W Report sho'uld be mailed REPI ESSEX ( to the Com month. DRT OF on Mont ..... :OMPANY stroller on the eighth of each POWER NET OUTPUT IN Kl LOWATT-HOURS OF POWER STATION K. W. Hrs. Supplied to Feeders Total Ry. This Div. Ry. Ry. Lighting- Other Purp. Transformed* Total AMOUNT OF POWER USED FOR RAILWAY PURPOSES ON THIS DIVISION. KILOWATT SALES Source Amount To K. W. H. As reported above From other Divisions as reported by: Supt. Supt. Total Sales Supt. LIGHTING Supt. To K. W. H. Supt._ Purchased from other Companies: Total Power Used for Ry. Purposes Total Lighting As Above. ♦Note: On th station. e Line "Transformed" show the input tc ...191 ) the sub- Form no. Power Station Output. Size, 8 l / 2 X 14. On divisions where there is railway service only and where the power furnished from each of the stations is fur- nished for railway use only, the output of its stations and sub- stations is shown on the line marked "Railway" ; the entries should be so arranged that generating stations come first and then substations. The information called for under the two headings "Kilowatt Sales" and "Lighting" applies only to 2 c "OUTSIDE" ACCOUNTING WORK those divisions where there are both railway and lighting services; this line, therefore, need not be used on railway- divisions. On those divisions where there is only lighting business, the output of each station or substation will be shown on the line "Lighting." On divisions where there is both railway and lighting busi- ness the names of the various stations and substations are to be shown as indicated above. The power used for lighting purposes only is shown on the line directly under the proper power station. The power used for railway purposes from the various power stations and substations is shown on the line "Railway," a separate line being used for each separate railway division and the output being shown under each station. This report should be filled out carefully, dated, signed, and should be sent to the comptroller by the fifth of each month. As the form is used as the official record of the out- put of all stations, it must be absolutely correct. Monthly Report of Lubricants Used A monthly report is sent in from each division on Form in, showing the amount of oils and grease used for lubri- cating purposes. All information asked for on the blank should be filled in, and it is to be noted that this form provides for the separation of the lubricants under three headings: ( i ) Generating Stations ; (2) Substations; (3) Cars. 1. Generating Stations. In each column enter on the proper line the quantity of each kind of lubricant actually used at the station during the month. If there is more than one generating station on a division, a separate column for each station should be used ; the name should be written at the top and the total shown. The quantities reported must be the amount of lubricant actually used at the power station and OTHER DEPARTMENTS 25* THE WESSEX COMPANY This Report to be mailed to Comptroller on the 10* of each month. Monthly Report of Oils and Grease Consumed. Name of Division Month of 191 _ Note -This Report is not intended to shew the amount of Lubricants sent from Storeroom, but the amount ACTUALLY USED for Cars, Power Stations and Substation Machinery GENERATING STATIONS CiaL I Lbs. Gal. iLbs. Gal. |Lbs. Gal. |Lbs. Gal. I Lbs TOTAL Gal. Lba Galena P.H. Valve Oil Engine Dynamo Turbine Crank Case Air Compresso r 1 Approved' Correct: Mgr. or Supt. Form in. Monthly Report of Oils and Grease Consumed. Size, 8y 2 X ii. should agree with the monthly power station operating report. 2. Substations. In the proper column under "Substa- tions" should be entered the quantity of each kind of lubricant used at all substations. 3. Cars. Under the heading "Cars" should be entered the quantity of oil used in lubricating cars during the month. Lubricants used for shop machines or other purposes should not be included, but only the amount used on cars. The kilowatts and total car mileage should be entered in the space provided and should agree with the other reports covering those matters made to the comptroller's office. . ' 2 r 2 "OUTSIDE" ACCOUNTING WORK If any kind of lubricant not provided for on the form is used, a full description of it should be entered on one of the blank lines, and the quantity used should be entered in the proper column. Track oil and signal oil should be entered in separate col- umns or as a "memo." on the back of the report. Great care should be used in preparing this report, which should show only the actual quantity of oil used for lubricating at generat- ing stations and substations and on cars. It should not show the amount of oil received or sent from the storehouse, but the actual consumption. If any oil is used for the initial lubrication of new machines in power stations, or substations, or new cars, the amount should be excluded from the report under "Generat- ing Stations," "Substations," and "Cars," and be entered under "Remarks." Additional Operating Department Forms The work of the division managers covers many other matters which cannot be touched here, owing to lack of space, but additional forms are shown in Part IV, for the benefit of those interested, under "Transportation — Passenger and Express Services," and "Shop and Car House Forms." The Legal Department — Claim Agents' Accounts The accounting work in the legal department, over which department the accounting department has supervision, is practically confined to the claim agents' reports of their work- ing funds. In settling claims for accidents and damages the practice of American street railway companies varies a great deal. Some of them use a system of drafts, while others place working funds in the hands of their claim agents; the meth- ods of settlement, of course, are also various. The instruc- OTHER DEPARTMENTS 253 tions outlined herewith provide for a system of working funds in the hands of the claim agents. Claim Agents' Working Fund No exact rule can be laid down for handling such a work- ing fund, but in general it is entrusted to the agent for the fol- lowing purposes: 1. For the immediate settlement of accidents and dam- ages, particularly small ones and those that cannot be settled at a later date through check and voucher direct. 2. For any emergency case that cannot wait until the regular check and voucher can be received from the main office. 3. For the payment of doctors' bills which it is necessary to pay immediately, obtaining the doctor's regular uniform receipted bill. 4. For payment of witness fees and expenses, obtaining their receipt for the payment. 5. For advances to other claim agents in their emergency cases. Such advances should always be accom- panied with a letter of transmittal, and a copy sent as soon as possible afterwards to the comptroller's office. When the amount is returned, it should be accompanied by a letter, a copy of which should be sent to the comptroller's office. No part of this fund should be used to advance wages to any assistants in the department or to any employees of the company. Under no circumstances, of course, should any part of the fund be used for personal expenditures. No rule can be laid down stating exactly where the claim agent shall keep the money which he may have on hand. It would be well, however, to keep the largest part of his working fund on 2 c 4 "OUTSIDE" ACCOUNTING WORK deposit in a bank near his office. It should be deposited in his name as claim agent and checks drawn should be signed "Joe Doe, Claim Agent for Company." Claim Agent's Cash Book To account for this working fund the claim agent is required to keep a small cash book and report to the comp- troller. The book should be opened by entering on the debit side the amount of cash on hand as of a certain date, and on the credit side the disbursements daily, giving the date, name, and amount. When the agent receives the check reimbursing him for disbursements he will note the amount so received on the debit side of the cash book, as "Reimbursements for Dis- bursements, Month of , $ " It will sometimes happen that when a large accident occurs on the agent's division he will receive an amount from some other claim agent to take care temporarily of settlements. When such is the case the matter should be recorded in the cash book in the regular way, to show the amount received, the disburse- ments, and the eventual reimbursement. This will enable the claim agent to tell exactly the status of his working fund and to furnish a statement to the comptroller's office at any time. It will also enable the traveling auditor to check the agents' accounts properly. At the end of the month the cash book should be balanced and the balance carried forward to a new page. At this time also the claim agent should prepare a voucher covering the disbursements for the previous month, including his personal expenses, etc. In this way the working fund is reimbursed each month. Claim Agent's Accounts Checked by Traveling Auditors When a disbursement is made the agent should draw a check upon this account, making the proper record on the stub OTHER DEPARTMENTS 255 of his check book. If he does this, it is easy for the traveling auditor or any properly authorized representative of the com- pany to check up his accounts; his check and bank books; the disbursements which he has made and for which he holds receipts; the record of the disbursements which he has made and which are in transit between his office and the main office ; and the balance of cash to make up the total of the working- fund. This balance in cash should be either in the agent's pocket, or in the office where it is available to the person authorized to check the accounts. In no case should bank books be accepted as evidence for this fund when they show only the name of the agent without his official title. Additional Legal Forms In connection with this accounting in the legal department there are, of course, many other records kept by the claims attorney and other officials of the department. A number of the forms used are shown among the additional forms listed in Part IV. Engineering Departments — Power and Equipment Of the three engineering sections shown on the organiza- tion chart in Chapter I, mention may be made here of the work of the chief engineer of power and equipment. Most of the reports which come up through the power and equipment office have been touched upon in various chapters — for instance, the fuel report and the kilowatt-hour report which have been described above. The chief engineer of power and equipment approves the fuel invoices for the coal as contained in fuel report; he also checks up and approves the K. W. H. reports. In addition to these reports there is one other which affects the accounting department, namely, the permit for attaching wires, etc., to the poles at certain rental figures. For this Form 1 12 is used. 256 "OUTSIDE" ACCOUNTING WORK THE WESSEX COMPANY PERMIT FOR ATTACHMENTS The Wessex Company, hereinafter known as the Licensor, hereby grants permission to the , herein- after known as the Licensee, to make attachments to such poles of the Licensor as are herein specified under the terms and con- ditions hereinafter given. Pole No. Gain Attachments to Consist of Annual Rental Rate 1 Total ^v_^_^nL-v_^-v_j [^1^1^'^^ I 1 Town. Diagram Show ng # Approx mate Division Location of Po es In accepting this permit, the Licensee agrees that: 1. The ownership of the pole or poles shall remain with, and the title to the pole locations shall be vested in, the Licensor. 2. The attachments shall be made in accordance with that part of Section Three of The Report of the Committee on Over- head Line Construction of the National Electric Light Associa- tion, read before its Thirty-Fourth Convention held at New York City, May 29th .to June 2nd, 1911, and entitled: "Specifications for Construction on Poles Jointly Used." In case specifications are issued by the Public Utilities Commission of the State of.... such specifications shall automatically supersede the above mentioned specifications. 3. All poles that shall by reason of location or use be subject to special strain by reason of the attachments made to them, shall be securely guyed or concreted in, or both, by the Licensee, where in the judgment of the Licensor, such construction is considered necessary. 4. It will, at its own expense, upon thirty (30) davs written notice from the Licensor, change or relocate its attachments whenever in the judgment of the Licensor, such change or re- location is necessary. 5. This permit* is void unless made use of within (90) days from date of its issue. 6. It will at its own expense upon six (6) months written notice from the Licensor, remove the aforesaid attachments. 7. The attachments requested are not included under any existing agreement between the Licensee and the Licensor and if at a later date a contract is made covering a mutual inter- change of attachments at this location, the attachments included in this permit will be included in such agreement. 8. It will indemnify and save harmless the Licensor against any and all claims, damages and expense to which the Licensor may be subjected by reason of any work done or precaution omitted by the Licensee, its agents or contractors, with reference to the attaching and maintenance of the aforesaid attachments. THE WESSEX COMPANY. By. Chief Engineer Power and Equip. Licensee's Application No Dated Form 112. (a) Permit for Attachments (in quadruplicate). Size, 8 l / 2 X 14. OTHER DEPARTMENTS 257 Notice of Completion of Attachments to The Wessex Company's Poles THE WESSEX COMPANY, Mr .191... This is to notify you that attachments covered in Wessex Company Permit No dated were completed Company. By (To be filled In and forwarded to C. E. P. & E.) Attachments have been checked and are satisfactory. Approved: Line Foreman. Manager or Superintendent. Forwarded to Comptroller 191 Chief Engineer Power and Equipment Form 112. (b) Permit for Attachments — Completion Notice (coupon attached to original). > u S3 < Ih Oh A « 8 u •a ° s s X •d PL, W in u co Ih W "C £ 1 O H C £ 1 « H > > i ."t ■» nted Noti £ 1 ) > c Gra etion 1 ! c ermit ompl Q < t- C Clh O Form 112. (c) Permit for Attachments (reverse of quadruplicate). 258 "OUTSIDE" ACCOUNTING WORK This form is made up in quadruplicate and the following instructions are issued in connection therewith. The original or white sheet is sent to the company apply- ing for permission to make attachments, and after such attachments have been made the detachable completion notice is to be returned by such foreign company to the division office, for checking on the spot by the line foreman and subse- quent approval on the part of the division manager. The completion notice is then sent to the chief engineer of power and equipment and by him to the comptroller. The duplicate or green sheet is sent to the division office for filing; the triplicate or yellow sheet is sent to the comptrol- ler for his record; and the pink sheet or quadruplicate is retained in the office of the chief engineer of power and equipment. The above arrangement should give everyone concerned a satisfactory record, and it should provide the comptroller with the necessary information for issuing bills to cover. Additional Engineering Forms The work of the engineer in charge of maintenance of way, as well as that of the engineer in charge of construction, so far as the accounting department is closely concerned, has been touched upon in Chapters X and XV. Other forms used in the engineering departments are given in Part IV. Part III — Accounting Work Mainly Inside the Comptroller's Office CHAPTER XVII THE GENERAL BOOKS Difference between General and Detail Books So far as the general books are concerned, the accounting of a street railway company differs but little from that of other large business concerns except that the process of sim- plification has perhaps been carried somewhat further than is usual. Keeping the general books represents what used to be thought the essential function of an accounting department, that is to say, checking and keeping track of the income and expenses so as to pre'sent a view of the business as a- whole. In any large modern business, however, this keeping track of the business as a whole constitutes a very small part of the accounting work. To include in the general books the con- crete detail of an elaborate business would make them unwieldy and virtually useless. Most of the accounts, accordingly, are divided today among a large number of detail books, and the general books have become very simple in form, containing merely a few large controlling accounts. Opinions among accountants differ somewhat as to the number of controlling accounts that should be kept in the gen- eral ledger. The writer believes in having the general ledger as free and unencumbered as possible, inasmuch as details can be kept much better in sub-ledgers. 259 260 "INSIDE" ACCOUNTING WORK The General Journal A few suggestions may be given as to methods of handling the general books. The entries for the general journals can be made up most conveniently by using loose-leaf journal entry blanks some- what like the example given in Form 113. These should be provided in two sizes, sheets and half-sheets. No Month of THE WE5SEX COMPANY ACCOUNTING DEPARTMENT- JOURNAL ENTRY W .Iniirnal R-ilin DEBIT CREDIT — Approved^ Cntered (bmptnoller Bookkeeper Form 113. Journal Entry Form. Size, 8 l / 2 X 14. These blanks are filled in as occasion requires, several entries on one blank. In every case, along with the main body of the entry the date when it was made up and the month's account to which it belongs should be shown clearly. The entries on each blank when completed are initialled by the clerk who has made them out. They are then submitted to the THE GENERAL BOOKS 26l head bookkeeper, who also initials them before presenting them to the comptroller for his approval. An important part of the head bookkeeper's duties in a business so large is keeping track of these entries for the gen- eral journal, not merely to see that they are correct in form, etc., but to make sure that none which should be included in the general books are overlooked and that those which should be included are entered at the right time. This work is much facilitated by keeping at hand a list sheet for the entries which present themselves regularly each month. It should be ruled with columns for twelve months in the year, somewhat as shown below. Of course, there are other items which may be added to the list, and each comptroller should make sure that the book- keeper adds entries to the list as the business requires. There may be items which cannot be thus listed, such as correction entries, etc., but with such a list as the following the head bookkeeper is sure of covering the regular entries each month. This list is given merely as an illustration and is not supposed to be complete in any way. The Wessex Company 1917 List of Regular Monthly Journal Entries General and Miscellaneous To Prepaid Insurance Taxes To Prepaid Taxes Taxes To Accrued Taxes Rent of Leased Roads To Accrued Rent for Leased Roads Sundries To Accrued Rental of Land and Buildings Jan. Feb. Mar. Apr. May Jun. 262 "INSIDE" ACCOUNTING WORK The Wessex Company 1917 List of Regular Monthly Journal Entries Jan. Feb. Mar. Apr. May Jun. Interest on Unfunded Debt To Accrued Interest on Unfunded Debt Maintenance of Equipment To Accrued Depreciation of Equip- ment Maintenance of Equipment To Automobile Expense Maintenance of Equipment To Automobile Inventory Accrued Earnings To Operating Revenue Prepaid Earnings To Miscellaneous Rentals Maintenance of Equipment To Maintenance of Equipment (10% on Labor and Material on work done in shops) Operating Revenue To Fare Redemption General and Miscellaneous To Casualties and Insurance Reserve Material and Supplies General and Miscellaneous To General and Miscellaneous (Percentage of Cost of Handling Stores) Sundries To General Stores Scrap Account To Sundries Sundries To Scrap Expense Sundries (Coal Burned) To Fuel Inventory- Fuel Inventory (Coal Received) To Sundries THE GENERAL BOOKS 263 The Wessex Company 1917 List of Regular Monthly Journal Entries Passenger Department Local Cashiers To Collections Cash in Transit To Local Cashiers Advance Ticket Sales To Operating Revenue Operating Revenue To Operating Revenue (Dog Fares) Operating Revenue To Operating Revenue (Chartered Cars, more than one Division) Pay-roll Paymaster's Account To Wages Unclaimed Sundries To Pay-roll Suspense (Clerks' Pay-roll) (General " ) (Monthly " ) Wages Unclaimed To Sundries (Write off in June and Dec.) Bills Collectible Bills Collectible To Sundries Sundry Sales To Sundries Vouchers Payable Sundries To Vouchers Payable Express Department Entries for this work shown and ex- plained in detail on page 137. Jan. Feb. Mar. Apr. May JUN. 26 "INSIDE" ACCOUNTING WORK An explanation should accompany each journal entry to tell all about it. For example, in the second entry: Taxes To Prepaid Taxes For one month's taxes set up on basis of 4>^% of gross earnings, these to be paid when due. The head bookkeeper is held responsible for the journals. They should be kept in the bookkeeping department of the office nearly all the time, and handled only when absolutely necessary and by clerks authorized by the head bookkeeper. Journal and Ledger Entries When entries are received from the comptroller with approvals, they should be copied into their respective journals. The instructions given for the general journals apply also to the general ledgers. Entries are posted direct from jour- nals and cash book. In some companies the cash book is jour- nalized but this is unnecessary. General Trial Balance Sheets Similar instructions apply to the general trial balance sheets. The accounts should be so arranged in the general ledger that when the trial balance is taken the balances may be readily grouped for making the general balance sheets. It must be borne in mind that all this work in connection with the general books, while comparatively simple in form, is of vital importance to the business and should be entrusted only to an expert bookkeeper. A man of this sort, while giv- ing his immediate attention only to the general books, may at the same time exercise a checking and supervising influence over the subsidiary accounts. CHAPTER XVIII DETAIL LEDGERS OF EARNINGS, EXPENSES, SUPPLIES, ETC. Books Supplementary to General Books The number of the detail books required by a large street railway company, to supplement the general books with their few controlling accounts, is very considerable. The Inter- state Commerce Commission, which governs all street rail- ways doing interstate business and to which many others con- form, calls for 262 accounts in all, in six groups: Operating Revenues, 19; Operating Expenses, 100; Income, 25; Profit and Loss, 17; Balance Sheet, 51; Road and Equipment, 50. Although no one road probably will have all the activities here provided for, the partial list of regular journal entries given in Chapter XVII suggests the large number of accounts which must be carried by any large company. Space does not permit taking up all of these detail accounts; many of them, of course, are so fully explained in the Interstate Commerce Commission's "Uniform System of Accounts for Electric Railways" that there is no need for special comment. The following comprise the detail books which are usually of chief importance in a large and diversi- fied street railway system, all of which call for somewhat special treatment. General Operating Earnings and Expense Ledger Most important of them all is the general operating earn- ings and expense ledger (Form 114). In this one book 265 266 'INSIDE" ACCOUNTING WORK '[the wessex company // // toucher No. Bill No. J.E. No. OTICULARS Ancaster Lines Dundas Lines Freelton Lines -1 1— GENERAL TOTAL pO= \ \\ (1 1 II r—n i n l'f ' }T 1 -u ■ -■ l II \ \ ■ t Form 114. General Operating Earnings and Expense Ledger (face and reverse). Size, 23 X 17^. are carried the 19 operating earnings accounts and the 100 operating expense accounts prescribed by the Interstate Com- merce Commission. These operating earnings and expense accounts are kept in a large loose-leaf book. Several years ago the street railway companies were using a classification of accounts containing about 50 operating accounts. At that time it was usual to have the expense ledger in one bound volume, which was very difficult to balance quickly with the general ledger because only one clerk could work on the bound volume. The expense accounts are classified by the Inter- state Commerce Commission under five general headings, namely: Way and Structures, Equipment, Traffic, Conducting Transportation, General and Miscellaneous, and all these groups appeared in the general ledger under their respective headings. To overcome the difficulty of one clerk working on the bound expense ledger volume, it was arranged later to have two bound volumes, each containing one-half of the operating accounts. There was still difficulty in balancing these two expense ledgers with the general ledger, and when the Interstate Com- DETAIL LEDGERS 267 merce Commission promulgated their Uniform System of Accounts of July 1, 19 14, with 100 expense accounts it was necessary to devise a better method to make it possible, after all of the earnings and expenses had been posted in the expense ledger during the month, to balance it quickly with the general ledger details under the respective general head- ings. A loose-leaf book was devised accordingly so that, for instance, the leaves covering the group of expenses under the heading "Way and Structures" could be taken out and given to one clerk; those covering "Equipment" given to another clerk; and so on with the rest of the groups of accounts. If necessary, five clerks could work at one time, balancing the general expense ledger with the general ledger accounts, thus greatly facilitating the work and getting the balances out on time. After these loose leaves or sheets have served their pur- pose and have become a year or more old, they are bound in a permanent volume. Handling of Expense Ledger The loose-leaf sheets making up the expense ledger are arranged with a column for each division of the road ; and all vouchers and journal entries which have charges or credits to operating expenses, all bills and journal entries which have credits to earnings will be entered in this book by divisions as they come through. A brief description of each item should be given in every case in the space allotted for that purpose. Bills should be posted direct from the bills collectible register at various times during the month. All vouchers and bills should be checked back on the voucher and bill registers before the voucher and bill collectible entry for the month is made up for the general journal. Errors in posting are apt to occur in the voucher and bill books, and if they are corrected before the voucher and bill entries are made up ready for the general journal, correcting journal entries are not necessary. 26 g "INSIDE" ACCOUNTING WORK Correction of Errors Errors in posting, such as assigning to one division or account that which should have been assigned to another divi- sion or account when both are under the same general ledger heading, should be corrected by debiting the proper account in black ink, crediting the other account in red ink, and writ- ing in the "Particulars" column a brief but clear explanation regarding the voucher, bill, or journal entry which is being corrected. The comptroller or chief clerk should at once initial the correction and the clerk immediately in charge should be cautioned to see that this is done. When all items for the month have been posted, each account should be footed, and the footing for each successive month added to the figure for the earlier months of the cur- rent year. The figures for the series of months should then be drawn off and the total of all of the accounts which come under one group of ledger headings should equal the general ledger balance for that particular group of accounts. The figures are then ready to be transferred to the monthly state- ments, for the month and the yearly period. The book should then be ruled and the balances brought down in their respec- tive places in readiness for the next month's postings. Power Station Sub-Expense Ledger Accounts A sub-ledger for power station accounts, similar to the general expense ledgers, should be provided. This book, which is merely a further extension or analysis of the general expense ledger, should contain all the power accounts, just as the expense ledger does, but carried or posted to each power station or substation. Take, for instance, what is known in the Interstate Commerce Commission's system as "Operating Account 53, Fuel for Power." The cost of the coal burned is posted to this account in the general expense ledger and at the end of the month the total expense for the month for one divi- DETAIL LEDGERS 269 sion of the company appears under this account. But suppose there are two power stations and three substations on this divi- sion and it is desired to ascertain the cost of coal for each of the stations and the expense for handling at each substation; then one can readily understand the utility of this power sta- tion sub-expense ledger, which indicates the cost of the coal and other expenses at each station. All vouchers and journal entries on which there are charges to power stations or substations, and all bills, should be posted in this detail book as they come through. When all these items are posted each account should be footed for the month. Each individual item making up Account 53, for instance, should be checked against the same account in total as it appears on the expense ledger, care being taken that the proper division is being charged or credited alike on both the expense ledger and the sub-expense ledger. The month's figures should then be added to those for the series of months of the current year, and the monthly report ruled up. Park Earnings and Expense Sub-Ledger In case the company maintains amusement parks among its auxiliary operations, as explained in Chapter IX, a special sub-ledger similar to that of the power station accounts should be kept to cover this subject. This should give the details of the Interstate Commerce Commission Account 81 (Park Resorts and Attractions), which is covered in the expense ledger. All vouchers, journal entries, and bills should be duly posted, each item being checked with the corresponding item appearing on Account 81. After all items have been checked, the combined total of all the sub-accounts should equal the total of Account 81 as shown in the expense ledger. All cred- its to Account 81 should be posted in red ink unless the credit is an earning ; then it should be posted among the earnings in black ink. 270 "INSIDE" ACCOUNTING WORK Fuel Inventory Sub-Ledger As one of the heaviest single expense accounts of the mod- ern street railway is that for fuel, the fuel inventory ledger is one of the most important of the detail books. A book with four-column ruling should be provided somewhat in the fol- lowing form: Date | Vo. No. 1 Particulars Price 1 Tons | Pounds | Total II 1 1 1 1 II 1 1 1 1 II II Each month when the reports are received on Form 109, "Monthly Fuel Report," they should be checked and an encry made for the general journal, charging Fuel Inventory with the amount of coal received at the invoice price and crediting Accounts Payable Fuel. The Fuel Inventory account, as detailed in this sub-ledger, is a running inventory of all coal received, used, and on hand. By running this account it is plain that the coal used can be charged out at an average price, and the account is credited accordingly with the amount of coal used or burned during the month at the average price. When the invoices for coal purchased are paid, as explained in Chapter XX, they are charged against this Accounts Payable Fuel account; therefore, if all coal bills were paid at the end of the month there would be no balance in this account. The amount of the freight and coal received should be shown opposite the entry for each car, and when the journal entry is made up for coal, freight charges should be included charging the freight to Fuel Inventory account and crediting the account "Freight Charges on Fuel." There are also charges to this Fuel Inventory account from the pay- roll, and also cartage and discharging bills or bills for unload- ing boats, if the company receives coal by boat — all of which DETAIL LEDGERS 271 are to be added to this account. The clerk should make sure that all cartage charges are in before the accounts of the month are finished, or else that an estimated amount is set up to cover such charges. Corrections and Adjustments in Fuel Inventory Sub-Ledger All differences between the amounts estimated as due for coal or freight on coal and those actually paid should be charged to this account, provided the amount actually paid is larger than the amount estimated. If the situation is reversed the account should be credited with the difference. Should the amount paid be larger than that estimated, the difference may be charged to this account on the invoice or freight bill ; but should the amount paid be less than that estimated, the journal entry will be necessary. If a cartage bill does not appear in time to be taken into the current month's account, it is necessary to estimate the cartage charge by preparing a journal entry charging Fuel Inventory and crediting Accounts Payable Fuel. Adjustments of Coal Measurements Reported Adjustments must be made from time to time in the fig- ures for coal on hand, as sent in by the division managers. The measurements of coal piles and calculations based on them are checked in the comptroller's office, and when errors are found adjustment must be made and reported to the divi- sion manager concerned. A memorandum, accordingly, will be sent to him of the amount of coal debited or credited to his Fuel Inventory account at each one of his power stations because of the adjustment. This notice to the manager should give (1) the amount of coal on hand for the power station in question at the end of the month, according to the main office records; (2) the amount of the adjustment necessary to make the figures agree 272 "INSIDE" ACCOUNTING WORK with those of his own report (Form 109) ; and (3) the cor- rect amount remaining on hand after the adjustment is made. A copy of the notice should be sent to the chief engineer or to the supervisor of power plants. Statement of Cost of Coal Each month a statement should be prepared in the comp- troller's office, showing the cost per ton at which fuel was charged off to operating expenses during that month as follows: Cost Per Ton of Fuel Charged to Operating Expenses During- Cost of Name of Price Per Unloading and Total Cost Power Station Ton Alongside Handling Per Ton Per Ton The second column includes the invoice price of the freight charges, either by rail or by boat. The fourth column gives the figure or the average price at which the coal is burned out, as just explained under "Fuel Inventory Sub-ledger." In preparing this statement the invoice price of the last lot of coal should be ascertained and the freight charges from the last freight bills paid should be obtained and added, to give the information for the second column. The difference between that figure and the price at which the coal is charged represents the unloading and handling charges. Generally speaking, the price per ton alongside will not often change. The variation in the price will be almost entirely in the cost of unloading and handling. The value of this statement is that it will show at once whether the actual price of the coal is increasing or not and whether the handling is done in an economical manner at each DETAIL LEDGERS 273 power station. The figures giving the price per ton alongside are those for which the purchasing agent or the official who is charged with the responsibility of obtaining coal is responsi- ble. If they are too high he must explain the reason, but, of course, he cannot in any way control the demurrage nor the expense of unloading, which is a matter for the division man- ager to explain. The statement should be sent out as a regu- lar supplement to the power station statement, and copies should be furnished to the persons who receive the copies of that. Demurrage charges should not be considered as freight but charged direct to the operating account, after having been approved by the engineer in charge of the power station or by the manager. General Stores Sub-Ledger The general ledger of the company will carry merely a controlling account called "General Stores." As it is neces- sary to have details of this account by divisions, and also to know whether all invoices passed by the stores keepers have reached the comptroller's office to be paid, it is accordingly necessary to keep a general stores sub-ledger, arranged by col- umns headed up with the names of the divisions of the com- pany. It is one of the most important and inclusive of the detail books. As vouchers with general store charges come through during the month they should be posted in this book. The number of the voucher, the name of the person con- cerned, and the amount of each bill should be entered in the proper division columns, and the total of the postings of each voucher carried out in the total column. When all vouchers for the month have been posted and the total checked with the total charge to general stores as shown by the voucher book, all debit journal entries should be posted; then all credit entries; and last, the bills collectible. 274 "INSIDE" ACCOUNTING WORK The book when footed for the month and this total adde. the previous totals, should equal the general ledger balance. General Stores Reconciliation Reports Statements should then be made reconciling the balance of each division with the balance as shown by the reports sent in by division stores keepers. It is essential, of course, to have the division stores keep- ers' accounts agree with the records in the main office. To this end the stores keepers should close their accounts as regards invoices received on the first of the following month. They should assume that all invoices which have left their offices for the comptroller's office prior to the first, of the fol- lowing month and which cover material received during the preceding month will be taken into the preceding month's accounts, and that all invoices sent in after the first of the month will be taken into the current month's account. The voucher clerks in the comptroller's office should take care to voucher in the same month the invoices which the stores keep- ers take into their month's accounts. This will tend to reduce very much the number of invoices which the stores keeper must strike off from his current list and add to that of the fol- lowing month. In sending out the reconciliation sheets and in referring to invoices included by the comptroller's office but not included by the division stores keepers, or vice versa, reference should be made in every case to the stores keeper's number of the invoice referred to. (See Chapter XIII.) Stores Issued When the reports of material issued from storerooms come in monthly from the stores keepers on Forms 99 and 100, they should be summarized and one journal entry made to cover all divisions. The items ordinarily are all charges, but, DETAIL LEDGERS 275 should some of them be reported as credits, they should be passed, unless the item is large. If so, the comptroller's office should investigate. General Stores Statement A statement showing movement of materials and supplies according to divisions may be issued each month after the reconciliation reports have been sent out. The following gen- eral arrangement or form may be used: First Column Name of division. Second Column Balance on hand the last clay of previous month. Third Column Amount received during the current month. Fourth Column Total of the second and third columns. Fifth Column Amount issued during the month. Sixth Column Balance on hand the last day of the cur- rent month. Seventh Column Balance on hand the last day of the cor- responding month for year previous. If this statement is made up it should be ready to be sent out by the chief clerk as soon as possible after the close of the month. This statement might be enlarged considerably, as explained in Chapter XIII. Scrap Account A columnar book similar to the general stores sub-ledger should be provided for this account and arranged by divisions. All entries to this account in the general ledger should be posted and the book balanced at the end of the month. Report of Scrap Accumulated The reports of scrap accumulated sent in monthly by the division stores keepers (see page 223) must be summarized and 2/6 "INSIDE" ACCOUNTING WORK a journal entry made charging Scrap account for the different divisions and crediting the proper operating expenses. Ordi- narily there will be no credits to authorizations from the scrap reports, but, if there are, the chief clerk should determine what account to credit before the journal entry is made up. Notice of Balances to Stores Keepers When the scrap ledgers have been balanced a notice of the balance of each division should be made up on Form 115 and sent to each stores keeper. THE WESSEX COMPANY MONTHLY 5CRAP REPORT DIVISION MONTH ENDING . Amount on hand first day of month accumulated during the month (see below) . received from other divisions Total Amount sold during month transferred during month _ Balance on hand last day of month. SCRAP ACCUMULATED Kind of 5crap "Ions or Lbs perTonorLb Price Total Credit Remarks Approved Correct' Storeroom Clerk Form 115. Monthly Scrap Report— Comptroller's Office. Size, 8y 2 X 14. The notices will be O K'd by the stores keepers, returned to the comptroller's ofhce, and placed in the scrap transfer file. If the stores keeper's records do not agree with the bal- DETAIL LEDGERS 277 ance for his division as shown by this notice, he should notify the comptroller's office, and the clerk in charge of the matter should immediately check up and adjust the difference with him. Scrap Expense Account Scrap Expense is a clearing account to which should be charged each month the cost of collecting and selling scrap. It should be cleared monthly by distributing the cost to the various operating expenses based upon the report of scrap accumulated. An analysis of this account should be kept by divisions in one of the sub-ledgers, showing the cost for each division of the collection and sale of scrap each month. The balance of this analysis should agree with the ledger. This cost for each division should be credited each month to Scrap Expense and charged to the operating expenses of the same division, prorated among the different accounts in the same ratio as the report of scrap accumulated was cred- ited. As it will be impracticable to make this entry on the actual figures, it can be made each month on the basis of the previous month's cost and the previous month's scrap accumu- lation. At the end of the year care should be taken to see that the account is in balance. Auto Expense Sub-Ledgers Automobiles and automobile trucks have come into general use within the last few years. There are machines attached to the track repair service, trucks used in the express and freight service and elsewhere, cars placed at the disposal of officers, etc. No book containing general accounting information would be complete without some information as to how the connected costs may be followed up. The three reports shown below are used for this purpose. 2/8 "INSIDE" ACCOUNTING WORK i. A pad of daily report blanks (Form 116) is carried in each machine. The operator fills out one of these blanks each day and forwards it to the division manager. It is to some degree analogous to the day card made out by the con- ductors. Both sides of the blank are used. Daily E .epor THE WESSEX COMPANY : of Motor Car No Division Date Time Speedometer Purpose Used By Driver Out in Diff Out i In f Diff 1 ! 1 1 I Note- Correct —Report repairs and supplies on back of this sheet. Annroved Checkec 1 ... _ Form 116. (a) Motor Car Daily Report (face). Size, 8 l / 2 X 6. Repairs and supplies in detail Sign here. Correct . . In Charge of Repairs Form n6. (b) Motor Car Daily Report (reverse). DETAIL LEDGERS 279 2. A monthly report, which is merely a summary of the daily reports, is sent by the division manager to the comptrol- ler's office on Form 117. THE WESSEX COMPANY Month 191.... Send this report to Comptroller Date Mileage Gasoline Gallons Cylinder Oil Attention Hours Repairs and Remarks Material & Laborin Detail 1 2 3 r%T I 30 I | I 31 I i I Totals ! I Correct Sign Here Form 117. • Motor Car Monthly Report — Division Manager. Size, 8y 2 X 11. 3. On or about the 20th of the following month, or as soon as the books are closed, a monthly statement is prepared on Form 118 and forwarded to the president and other offi- cials, showing the detailed costs for each one of the cars operated. Or a quarterly statement might suffice. In order to compile the above report in the comptroller's office each month, a detailed automobile expense ledger should be provided somewhat like the general expense ledger. The 280 "INSIDE" ACCOUNTING WORK THE WESSEX COMPANY STATEMENT SHOWING THE COST OF MAINTAIN- ING AND OPERATING EACH AUTOMOBILE DUR- ING MONTH OF 1917 Car No. Division Gas- oline Lubri- cants Tires, Chains and Tubes Other Supplies Other Repairs Miscel- laneous Total 1 2 22 Form 118. Motor Car Monthly Report — Comptroller. Size, lilA X 14. page will be headed with the name or number of the automo- bile, and the columns with the names of the expense accounts used. An account should be opened in the general ledger under some suitable heading such as "Automobile Expense," and instructions issued that all expenses should be so charged. During the month such charges should be anaylzed and posted to the automobile expense ledger from which the monthly statements are taken. At the end of the month the account is closed out to the appropriate operating account or accounts. Replaced Machinery Stock Account The detailed books thus far mentioned are all related to what may be called current earnings, expenses, and supply accounts. Two others may be mentioned which are distinctly DETAIL LEDGERS 28 I important but which relate in a way to capital accounts. One of these is the Replaced Machinery Stock account which is opened in the general ledger near the section where the store- room accounts are found. To this account is charged the present value of machinery and apparatus dismantled and stored away, either to be sold or to be used at some future time at some other point. The account might be given some other name, but this one defines it exactly. It will apply largely to power station apparatus. A good many of the appropriations coming from the engineer's office show charges against this account, but no charges must be entered on the books until a detailed report has been made as to the machinery removed and a full description of it given, together with its location, etc. It is very important that a careful and complete record of all the items charged to this account be kept in the office. A book should be provided lettered on the outside "Replaced Machinery Stock Account," in which should be entered a full description of all machinery and apparatus charged. Provi- sion should be made first for reference to the journal entry number under which the charge is made ; then a full descrip- tion of the machinery or apparatus, giving the name of the manufacturer and the serial number of the instrument or machine, if it has one, each piece being listed separately and the individual value stated. Then the place where the material is stored and the name of the man who has it in custody should be indicated. The rest of the book should be used for recording the sale or use of this machinery, as follows: When one of the instruments or pieces of machinery is sold, the bill number under which it is sold and the amount which is obtained for it should be entered in this book on the same line where the instrument referred to is recorded but on the opposite page ; any difference between the amount received from this sale and the value placed on it when it went into the account should be adjusted. The difference between the two 2 g 2 "INSIDE" ACCOUNTING WORK sides of this book should be the balance entered in the general ledger. This will not be a very active account, probably, but it should be very accurately written up. If any information is not available that is needed to complete the record, the matter should be taken up with the engineering department. Property and Equipment Withdrawal Account The other account to be noted here is in a sense comple- mentary to that just mentioned. When property or equipment which at the time stands in the capital accounts is sold, the amount received from the sale should be credited temporarily to a Property and Equipment Withdrawal account. To complete the record, steps should be taken at once to obtain from the proper parties full information as to the articles sold, with the replacement value, the date purchased, and the distribution of the replacement value according to the construction classification. It should also be ascertained whether or not the items sold have been replaced and, if so, when replacement was made and how it was charged in the accounts. If this information comes in, it should be carefully verified. When all the information is obtained, a journal entry should be made crediting the proper capital account with the replacement or cost value in the following manner: Property and Equipment Withdrawal account should be charged with the amount which was credited to that account when the piece of machinery, or whatever it might be, was sold or withdrawn, and the balance over the sale price, if any, charged to the proper operating or other accounts as may be determined. Other Accounts and Records There are a number of other matters which are even less related than the two accounts just mentioned to the current DETAIL LEDGERS 283 earnings, expenses, and accounts discussed in this chapter, but which must also be covered to some extent in the detail ledgers. Fire Insurance Records As a general rule, insurance is carried by outside insurance companies and therefore no special system of accounts need be kept, merely a list or record of the policies and what they cover. If a fire occurs, however, the adjustment with the insurance company and the repair or the replacing of property must be looked after. Formerly, these costs were charged direct' to operating expenses, thereby giving no individual accounting of each fire, a record of which is required by the insurance adjuster. It seems much more advisable to open a special ledger account for insurance expense through which all charges and credits may be worked out. To this account are charged the labor and material costs in connection with the repairs to cars, buildings, and other property necessitated through damage by fire. A detail of the storeroom report and the pay-roll distribution of the serv- ice will be given in each instance, and direct reference made at the time to the property damaged and the date of the fire. Thus, a good and complete insurance record may be kept. Tax Records In order to comply with the requirements of state laws a clear record of taxes should be kept. But if, as is not infre- quent, the company maintains a tax commissioner, the tax records will probably be kept in the commissioner's office and will not be considered a part of the accounting records of the company in the same sense as if kept by the accounting depart- ment. Some record, however, must be kept in the accounting department and it may be covered by a detailed ledger. The records to be kept depend largely upon the kind of 284 "INSIDE" ACCOUNTING WORK taxes and the methods of assessment in the particular town, city, or state. When taxes are assessed on the property of the company — real estate, rolling stock, securities held, cash in bank, etc. — the records should clearly show the assessed value of this property, and the accountant should be careful to see that the proper accruals are made. When taxes are of this nature, more detailed accounting is necessary than in cases where the railroad company pays its taxes to the state in the shape of an assessment upon its earnings. In the latter case the records are very simple. Sometimes taxes are levied by cities on gross earnings received within the fiscal year. If this tax is levied on the earn- ings received within the city limits when the street railroad is entirely within the city, the accounting is not very difficult. But if, as is generally the case, the street railway tracks are both within and without the city, the earnings within the city limits must be prorated upon a mileage basis or in some such way, unless the fare limits or zones are coincident with the city lines. Even then special accounting will be necessary in the matter of conductors' runs. No sample of accounting records can well be given under this head, as the records for different states, cities, and towns are so widely different at the present time; even though a sys- tem were shown which could be adapted to one city, it would be entirely different from one to be applied to some other city. Interest and Deposit Accounts Nearly every street railway company has bonds of some kind outstanding, and as a general thing when bond interest is due or just prior to the time when it is due, the money for payment of the same is deposited with some bank or trust company, which in turn pays the bond coupons as they are presented. One method of handling the deposits to pay the coupons, with the journal entries required, is shown below: 285 DETAIL LEDGERS Interest on Funded Debt $ To Unmatured Coupon Interest Accrued. $ For interest accrued during month of , 191.., on the following bonds (describe). (This entry to be made each month.) Draw voucher to bank or party to pay interest; this voucher to be drawn up before coupons are due. Charge Cou- pon Special Deposit (name of bank). Unmatured Coupon Interest Accrued $ To Coupon Interest Matured $ (This entry to be made month interest falls due.) Coupon Interest Matured (name bonds) $ To Coupon Special Deposit (name of bank) $ (This to be made as paid coupons come in.) There may perhaps be other kinds of interest and also other kinds of deposit accounts, but it is not the purpose of this book to discuss in any way the financial part of the street railway business, which is quite adequately treated in other works. Reserves Nearly every street railway corporation provides funds for certain specified purposes which are known as reserves. Pre- sumably the most important one in connection with the operat- ing part of the business is the reserve for accidents or damages. This reserve is created by charging to operating expenses a certain amount month by month and crediting a like amount to an appropriate reserve account. At the end of the year a statement should be obtained from the claim agent or the legal department in charge of accidents, and the 2 g6 "INSIDE" ACCOUNTING WORK reserve account adjusted according to the total of the esti- mated liability at the close of the fiscal year. Among the many other reserves are those covering depreciation and insurance, the latter providing for the various kinds of risks, fire, bur- glar, boiler, fidelity, or casualty insurance, etc. Each one of the reserve accounts may necessitate some separate accounting, if the company is large and detailed information is desired. Accident and Damage Reserve As regards the accident and damage reserve, Montgomery in his excellent book entitled "Auditing, Theory and Prac- tice," 19 1 7 edition, says: "Many companies create an accident reserve by crediting to such an account and charging to operating expenses a cer- tain percentage of the gross earnings. Payments in settle- ment of claims are charged against the reserve. This plan is preferable to that of charging accident payments directly to operating expenses, as it equalizes the charge to successive fiscal periods, and, if the charge is ample, creates a reserve for those claims which are unsettled at the end of each period. The plan must be intelligently used. Some companies use too low a percentage and carry the resulting debit balance in the reserve account along from one period to another as a deferred charge to operations. Obviously, payments for accidents occurring in one period are not of the slightest benefit to the operations of a future period, and if a debit balance develops in an accident reserve account it should be forthwith written off. Such a condition is sometimes due to an unusually seri- ous and costly accident, which is not likely to occur again soon, and it may not be necessary to raise the percentage of gross earnings credited to the accident reserve. As already stated, however, the overdraft in the reserve account should be imme- diately written off, as it is not an asset in any sense of the word." DETAIL LEDGERS 287 Depreciation Reserves As regards depreciation reserves the Interstate Commerce Commission in their "Uniform System of Accounts for Elec- tric Railways," issue of 1914, require street railways under their jurisdiction to set up a reserve for equipment, but clo not as yet require a reserve for depreciation of way and struc- tures or building and power plant machinery. It is a very difficult matter to determine, and Montgomery in the work just cited, writes on this subject as follows: "Depreciation of plant — or, if the word 'depreciation' has an unpleasant sound, the term 'accruing renewals and replace- ments' may be substituted — is a most important subject in connection with electric railways. Up to a few years ago rail- way operators, and especially promoters, would not admit that there was any necessity whatever for the inclusion of depre- ciation charges in the operating accounts. Their stock argu- ment was that the franchises increased in value more rapidly than the physical property deteriorated, and consequently there was no depreciation in the property as a whole. The fact that the increase in franchise values would not produce funds wherewith to make replacements when they were finally needed was ignored. Since the repeated puncturing of this fallacy by the bankruptcy of companies which proceeded on such an unsound basis, railway operators have reluctantly come to admit the necessity for taking account of depreciation, until at the present time practically all engineers of high stand- ing consider it an item of operating expense. It is a satisfac- tion that the correctness of a principle for which at one time almost no one but accountants contended has at last been recognized. In cases where companies have not made any allowance for accruing depreciation, the auditor is not war- ranted in giving a certificate unless it contains a qualification plainly calling attention to the omission of depreciation allowances." 2 gg "INSIDE" ACCOUNTING WORK The question of reserves is one that should be considered upon its individual merits by each company. Sinking Funds Under this heading there may be several funds provided by the company. As the term is generally used, funds are set aside periodically and invested in some good property or securities, so that there will be sufficient funds at the end of a certain term or period to take up an issue of bonds or provide funds for some other contingency. The records for these funds depend entirely upon the nature of the fund, and it would seem that this is another case where each fund should be considered upon the merits of the case. Wherever the question of sinking funds is involved there is always much special work for the accountant, as in a great many ways sinking fund provisions in regard to mort- gages, etc., are not always clear. It would seem from obser- vation of the present day trend that sinking funds are not being used as much as in years past, the presumable reason being the changed conditions of the last few years. By this is meant that the street railway business has become better established ; it would seem that there is not the same neces- sity for sinking funds as when the business was of a more unsettled character. Another reason for not using the sinking fund method is, perhaps, that the different street railway cor- porations need the money for use in the business instead of buying some long-term security or tying up the funds in some similar way. Leading Accountants on Sinking Fund Problems Some of the problems in sinking fund accounting have been worked out in the past by leading accountants. Three representative opinions may be put side by side. DETAIL LEDGERS 289 Montgomery in "Auditing, Theory and Practice," says: "Sinking fund requirements to retire bonds, etc., must not be confused with depreciation allowances Sinking fund installments are capital expenditures and do not properly appear among operating expenses, but should be stated as deductions from net profits when ascertained." Dickinson in "Accounting Practice and Procedure" says "Sinking Fund or Debt Extinguishment Reserves are not in theory a charge against Income, for the reason that they do not represent a loss or expense, but the extinction of an existing liability. Inasmuch, however, as in most cases the only source out of which such redemption reserve can be provided is the surplus earnings, it is quite usual to insert a provision in trust deeds that the sinking fund reserve is to be provided out of the profits of the year. The discharge of liabilities involves either a corresponding reduction in assets, or the accumulation of other liabilities or surplus. A reduction in current assets or the accumulation of other liabilities as a substitute for bonded indebtedness is clearly objectionable, and it is therefore desir- able that the amount applied each year to sinking fund pur- poses should be offset by the retention in the business of a corresponding amount of profit, which should be transferred either to a special reserve, or in reduction of some fixed asset account by way of provision for depreciation or otherwise." Some accountants in the past have confused sinking funds with sinking fund reserves and this point is well covered by W. H. Force, Jr., in the Electric Railway Journal of Septem- ber 23, 1916. Mr. Force says: "There is considerable differ- ence between a sinking fund and a sinking fund reserve, although each title is sometimes loosely applied to the other. Much of the confusion is probably caused by the fact that the term 'Reserve' is used in connection with banking and insur- ance in an entirely different sense from that in general accounting practice. Bankers consider a reserve analogous to 2 o "INSIDE" ACCOUNTING WORK cash or an equivalent of cash, but in accounting phraseology cash and reserve are not synonymous. 'A sinking fund in the strict sense is a fund raised by annual contributions for the purpose of providing means of paying off a funded debt' (Hat- field). 'A fund may be defined as a stock or accumulation of assets either money or considerable wealth brought together for a particular purpose' ( Pace) . On the other hand a sinking fund reserve may be defined as simply a backing total for an account." As will be seen from the above, there are so many ramifi- cations to the question of sinking funds that no definite method of accounting could be laid down without having full details as to the facts in the case. CHAPTER XIX ACCOUNTS RECEIVABLE AND COLLECTIONS Making Out Bills Great care should be taken to see that all bills are made out upon receipt of proper information and that they are properly recorded on the books of the company. The business of a street railway company is essentially a cash business, since the company obtains its money at the time service is performed or in advance through ticket sales and other prepayments. There are other items of revenue, how- ever, which are sometimes deferred, such as charges for char- tered cars and for express and freight shipments, returns for advertising privileges, station rentals, sales of power, scrap material, etc. To handle all these necessitates the maintenance of careful invoice records of bills issued for collection. In the office of some street railway companies the files are full of memoranda from which bills should have been made out. Memoranda concerning chartered cars and similar ser- vices rendered are carried in the desk of a clerk or even of a superintendent, doubtless with the object of saving a little accounting labor in case the debtor should pay the bill within a day or two, thus making the transaction a cash one that may be entered directly in the cash book. But the fact is that some of those memoranda may be lost and if the debtor does not voluntarily come to the office to pay the bill it may never be paid. If the bills are made out as they should be and immedi- ately recorded on the books, it is simply a matter of collection, as the record stands until the bill is paid. 291 292 "INSIDE" ACCOUNTING WORK No attempt will be made here to go deeply into the subject of collecting accounts — a matter which is sufficiently covered by several standard books. There are several points of inter- est, however, to those in the street railway business, such as preparing and collecting bills against parties for cutting over- head wires to allow for the moving of buildings, and issuing bills against towns or cities. These points will be detailed later in the chapter. Forms for Bills A useful form for bills collectible is the following Form 119. It is furnished in three sizes. THE WESSEX COMPANY ACCOUNTING DEPARTMENT ' In making settlement Give No. Registered in 191 Ledger Folio To THE WESSEX COMPANY, Dr. PLEASE REMIT THE AMOUNT AND SEND THIS BILL WITH IT TO THE TREASURER. If further information is required, address the Comptroller Correct. Approved, Approved. Certified forfeyment, Approved, Comptroller Vice-President Received 191. .Dollars in full payment of above account THE WESSEX COMPANY Form 119. Bills Collectible Form. Size, 8 z / 2 X Sy 2 . Approval of Bills As a general rule bills are prepared in the comptroller's office, but it has been found expedient to allow some of them to ACCOUNTS RECEIVABLE AND COLLECTIONS 293 be prepared in the offices of the division managers, the stores keeper, etc. In all cases when these bills which are prepared outside reach the comptroller's office, they should be examined by the head bill clerk to insure correctness of form, etc. The head bill clerk initials them and presents them to the comptroller, and if approved by the comptroller they are sent to the bill register desk and regularly registered. All bills are made up either in duplicate or with a copy on "chemical sec- onds" or other cheap paper. They are typewritten so that no time is lost in making a copy for the files in the comptroller's office. When the bills are ready they should be mailed promptly. In making up the bills care should be taken to condense as much as possible. When, for example, notices are received to bill a city, town, or school district, such notices should be held and one bill made up at the end of the month, thus saving accounting work, unless, of course, the cities require a bill for each order so as to keep separate the accounts of their different departments. Bills Collectible Register A careful record of all bills issued should be kept in a bills collectible register. Form 120 is shown here as an illustration of a book of this kind. Bills will be registered throughout the month, and at the end of the month the bills register should be closed or footed and an entry for the general journals made up, the body of which should read somewhat as follows: "For Bills Collect- ible Register in 19 as P er Bills Collectible Register No Page to " (Then give the names of the accounts which should be credited in the usual way.) After bills have been registered they are ready for mailing. 294 "INSIDE" ACCOUNTING WORK ACCOUNTS RECEIVABLE AND COLLECTIONS 295 Unpaid Bills As soon as possible after the close of the month, a list of all unpaid bills should be drawn off on Form 121. This list, THE WES5EX COMPANY LIST OF UNCOLLECTED BILLS COLLECTIBLE V* Date of Bill Month Registered Bill Number NAME AMOUNT Date Collected Date of Letters Requesting feyment L— -^ =— 1 1 = 1 ^ TOTAL TORWARD Form 121. List of Uncollected Bills. Size, 8]/ 2 X 14. as soon as completed and footed, should be handed to the head bookkeeper, who will check it with the balance in the general ledger and if the statement is in balance will certify it and pass the list to the comptroller for inspection. Needless to say, if the footing of the list does not agree with the figures in the general ledger, the head bill clerk will have to check his work and locate the errors, calling upon the head bookkeeper for assistance if necessary. As bills are paid each day they should be posted from the cash book to the bills collectible register and also to the regis- ter index. It is important that the bills which are registered each day be at the same time posted to this index and that all cash payments or cancellations be also posted to the index each day, so that it will always show the exact amount due from any firm or individual. A convenient form for such a register index is shown in Form 122. 296 "INSIDE" ACCOUNTING WORK THE WESSEX COMPANY NAME ATOBESS r° MONTH BILLS COLLECTIBLE. NUMBER FOL v DCBIT5 CREDITS v fa HOW 5ETTLED DATE — ' , - - Form 122. Bills Collectible Index or Ledger. Size, 12 X 11J/2. It is a decided convenience to use a loose-leaf book. When a leaf has been filled on both sides and all the bills on it paid, it may be taken out and put in a transfer binder. In the same way leaves containing the paid accounts of persons who have moved out of town may be placed in a transfer binder and help to relieve the main book of dead wood, leaving it free for accounts which are open. Collecting Bills The collection of bills and accounts is a very important matter. All bills should be collected promptly. Regular statements should first be sent out; then letters; and finally bills that have remained uncollected for sixty days should be referred to the comptroller to take up with the legal depart- ment if necessary. There are sometimes bills of a special nature, some ema- nating from the offices of the division managers and others from the comptroller's office, requiring special attention. Bills for Cutting Wires When a division manager is asked to cut wires in order to permit moving of buildings across or along the tracks, or when ACCOUNTS RECEIVABLE AXD COLLECTIONS 297 he finds that moving such buildings is going to cause the com- pany increased expense by requiring the cars to turn back on a route before going to the end of the line, or that it will inter- fere in some other way with the car service, the manager should endeavor to obtain a statement in writing from the owner or contractor that he will pay the company any expense entailed, including the cost of cutting and replacing wires, the cost of turn-backs, starters, etc. If the manager is unable to secure such an agreement voluntarily, he should trv to induce the local authorities to refuse to grant a permit until the owner or contractor has agreed to reimburse the company. Bills for Park Rentals, etc. All bills for park rentals, house rentals, station room rentals, etc., should be prepared on rent bill forms similar to Form 123. These bills should be sent to the rent agent to In making settlement Give No Registered in. Ledger Folio- THE VVE55EX COMPANY ACCOUNTING DEPARTMENT RENT BILL .«!_ To THE WE5SEX COMPANY, Dr» Please remit the amount and send this bill with it to the Rent Agent. Correct. Approved, Exam'd & RegistU Approved, -I9!_ Comptroller ViccPreidfni" .191 Received. .Dollars in full payment of above account for THE WCSSEX COMPANY Form 123. Rent Bill. Size, S^ X ffl. 298 "INSIDE" ACCOUNTING WORK collect if such an official is employed; if not, they are col- lected by the comptroller's office in the regular way. Handling Bankrupt Accounts All bankrupt accounts should be handled at the comptrol- ler's office by the clerk in charge of the bills and accounts receivable, or by the head bookkeeper. Should the account happen to be carried at some local office, the local cashier at that point should send the necessary papers to the main office to be filed with the bankruptcy court. The method of pro- cedure should be as follows: The necessary papers should be prepared and properly executed by the comptroller, ready to file with the referee in bankruptcy or with the proper federal officer, whatever his title may be. On the day when the papers are filed with the referee, a letter should be sent to the local cashier of the divi- sion in which the bill is carried, if it is a local account, advis- ing him of the fact that the necessary papers for the bill in question have been filed and instructing him to make a nota- tion in his records to that effect. If the account is an electric light or gas account (in case the street railway company is engaged in either business as a side issue), and a meter deposit is held by the local cashier, the cashier should apply the amount of the meter deposit to the credit of the account, and a proper journal entry should be made at the main office to provide for it as follows: charge Meter Deposits of the proper division and credit the consum- er's account of the proper department, or division, as the case may be. The local cashier should note on his list of delinquent creditors the fact that bankruptcy papers have been filed. When the cash in settlement of these bankruptcy claims is received at the main office, it should be credited to the proper consumer's account or Accounts Receivable, in whichever item ACCOUNTS RECEIVABLE AND COLLECTIONS 299 the amount is carried, which of course may readily be ascer- tained by referring to the delinquent list. The local cashier should then be advised of the receipt of this money, and be directed to mark its receipt in his ledger and to state that credit has been given to the proper account at the main office. Other bankrupt accounts should be handled similarly, that is, they should be taken into the account, "Accounts Receiv- able," a claim duly filed, and the matter followed up until settled. Then the balance not collected should be written off and all papers filed. Sight Drafts to be Handled at Once Bills marked "Sight Draft Bill of Lading" should be handled immediately. Clerks must obtain the comptroller's approval and forward them to the company treasurer, who draws the proper draft and collects the money. If the treas- urer does not promptly report the collecting of the bill, the clerk should notify the comptroller and look into the reason for non-payment of the draft. Sundry Sales — Procedure of Outside Offices One other matter which may be treated in this connection is that of sundry sales, or miscellaneous cash turned over by the division managers. This is money which has been col- lected (1) from employees for the sale or loss of company material, such as caps, badges, punches ; for damages to cars, and minor losses of old material not included in the scrap account; and for personal telephone calls; (2) from passen- gers for damages done by them to the cars, etc. When the division manager receives cash from any such source, he should immediately write a letter to the comptroller explaining the circumstances, and at the same time turn the money over to the cashier of his division together with a copy 300 "INSIDE" ACCOUNTING WORK of his letter to the comptroller. The cashier will make a special deposit of the money, crediting the proper account, and will place upon his bank advice information that will tell the comptroller what this money pays for. If there should be several items on any one occasion, the cashier may use the reverse side of the bank advice to enumerate them. The duty of the company treasurer in this connection is as follows: When the amounts are to be credited to operating expense accounts, not exceeding $5 for each item, he should enumerate briefly the particulars of each amount and enter it separately in his cash book in a special column headed "Sun- dry Sales." Checking of Sundry Sales The comptroller's office must make sure that for every amount credited in the "Sundry Sales" column of the cash book it has a report from the division manager. If no report has been received, necessary steps must be taken to obtain it. Each item in the cash book should be checked with a small mark, indicating that the advice from the manager has been received. At the end of the month all of these reports from the divi- sion managers are listed in chronological order according to the dates when they were received or when the money was received. This list shows the name of the division, the amount, and the account which should be credited. This list when duly totalled should agree with the amount credited in the cash book to Sundry Sales. A journal entry will be made each month for the amount of this statement, charging Sundry Sales and crediting the proper operating expense accounts. To the journal entries should be attached the reports of the manager and the list referred to in the preceding paragraph. Care should be taken to see that the Sundry Sales account is in balance at the end ACCOUNTS RECEIVABLE AND COLLECTIONS 301 of the month. With this method in force it will be unneces- sary for the division manager or cashier to send personal checks to the main office. No company money should be mixed in any way with personal funds. Corrected Bills Whenever a bill which has been rendered against some other person or firm is sent back to the company as incorrect, attention should be called definitely to the incorrectness in the accounts. This matter is very important. When a bill is once sent out of the office and then for some reason or other is withdrawn, either at the request of the other firm or because the company finds it to be incorrect, a letter must be written to the firm which objected to the bill or to which the bill was incorrectly rendered, telling them that bill No covering a piece of work for a certain amount has been withdrawn and that in its place corrected bill No has been issued. CHAPTER XX INVOICES AND VOUCHER ACCOUNTS PAYABLE Approving Bills for Payment The work of the accounting department in connection with the payment of bills against the company is most important. It is not complex or peculiar in procedure, however, and does not therefore require extended discussion. The accounting department must first make sure that all bills presented for payment have been duly authorized and are correct. Most bills pass through the purchasing department, as explained on page 200. The stores keeper checks the invoice for receipt of material, the purchasing agent for cor- rectness of prices, and the comptroller's office must then check it for arithmetical correctness and the proper account chargeable. The bills which for some reason do not go through the purchasing agent's office must be approved by some official authorized to incur expenses, such as the division manager, engineer, traffic agent, or other officer. In general these approvals should be somewhat as follows: On invoice charged to General Stores Stores Keeper ' Operating Expense. . Division Manager Construction Work . Engineer in Charge " Parks or Traffic .... Traffic Manager Taxes Tax Commissioner Damages Legal Department When the money is paid out, the accounting department 302 INVOICES AND ACCOUNTS PAYABLE 303 must see that a correct and adequate record of the transaction is made. This is generally done nowadays by the means of a system of voucher blanks. When an invoice has been checked as to prices and quantities and as to mathematical correctness, and has been approved as a whole by the head of the depart- ment concerned, a voucher check is filled out in the comptrol- ler's office; and after the proper approvals by the authorized officers of the company have been placed on the voucher blank, it is forwarded by the comptroller to the treasurer, who makes the proper entries in the cash books and in check records and signs the check. He also obtains the countersignature of the officer authorized to countersign checks, and then mails the check to the payee. Voucher Checks Voucher blanks vary with each company ; local conditions have something to do with this ; and each company very likely regards the form which it is using as the best that can be devised. It would seem, however, that time and money could be saved, if uniform voucher blanks were used by the differ- ent companies throughout the country, merely changing the headings to suit the needs of the various requirements. In the writer's experience the best arrangement yet devised is a voucher check, such as Form 124. The voucher is prepared in the auditing department upon a typewriter and at the same time the check is written in favor of the payee. One of the advantages of this form as demonstrated in actual use is that the distribution is shown on the face of the voucher, enabling the items to expenses, etc., to be passed direct to the books without turning over papers. The check is written when the voucher is prepared and thus saves the treasury department a great deal of work. The president's approval appears on the check as a counter- signature, which has the advantage of both approving the pay- 304 "INSIDE" ACCOUNTING WORK CHECK NO. 20002 TO THE WE55EX COMPANY AUDIT NO. MONTH OF ADDRESS TRFA3 NO. MONTH OF ^ . . ... , — Form 124. Voucher Check (face). Size, 8 l / 2 X 11. THE Vouche Month M c/> (Reverse side of above form | X 8 2 3 Form 124. Voucher Check (reverse). INVOICES AND ACCOUNTS PAYABLE 305 ment and countersigning the check. The approval of the comptroller appears on the voucher and then, if necessary, appears on the check as a countersignature instead of the signature of the president. The treasurer's office merely has to date the check, stamp in the name of the bank where it is payable, and fill in the signature. If the invoices have been checked by the proper depart- ment official for prices and quantities, by the comptroller's office for mathematical correctness, and approved as a whole by the head of the department concerned, the voucher need bear only the approval of the head of the accounting depart- ment and the president of the company. If it is necessary to pay any voucher without the custom- ary approval, that voucher should be presented to the official as soon afterward as possible and his signature obtained even though the money has been paid. On the voucher checks, which are made up usually on a typewriter and initialled by the head voucher clerk, only names should be inserted, never titles such as "Mr.," "Mrs.," etc. As soon as the forms are signed by the comptroller, all the vouchers should be entered in the proper voucher book and passed along to the expense ledger clerk and then to their proper destination for the approval of higher officers. After the vouchers have been returned from the other departments with approvals, they are passed to the treasurer for payment. The treasurer completes the checks by dating them and stamping in the name of the bank where payable, and records the same in the cash book; he then forwards them to the payee. The voucher, or upper half of the form, with papers attached, is returned to the comptroller's office to be filed. Frequency of Vouchering Miscellaneous bills should be vouchered promptly. The purchasing agent's bills may be vouchered once a month 306 "INSIDE" ACCOUNTING WORK except rush or discount vouchers, for which promptness is re- quired. The practice varies a great deal with different com- panies. Some prefer to voucher and pay their bills every day ; others pay weekly or monthly. Where the company is pur- chasing some items from the same firm nearly every day, a voucher prepared once a month and a payment made once a month are considered sufficient. The merchant who sold the goods receives his money within thirty to forty-five days after the sale of the goods and much work has been saved both in the treasurer's office and in the accounting department. Voucher Register The book for registering vouchers should be specially de- signed. A very convenient device for avoiding errors in foot- ings carried forward is shown on Form 125. The first, third, and other odd-number leaves of the book are cut away at the bottom through the "total" line (as shown in the first two columns in the illustration) ; the second, fourth, and other even-number leaves are cut away similarly through the "total" line at the top (as shown on the "sub-page" of the illustration). When the entries for the first left-hand page have been registered, the columns are added up, and the totals placed at the head of the page. When the second leaf (which is cut away at the top) is turned, these first totals appear over the second left-hand page, which is then added down. Since the third left-hand page is cut away at the bottom, when it is turned the second set of left-hand totals appears below this third left-hand page, which is then added up. Since the second leaf is cut away at the top, the printed headings showing above the columns on the first right-hand page are those of the second right-hand page (the first page of the third leaf), itself cut away at the bottom. When the entries on the first right-hand page are added up, the totals INVOICES AND ACCOUNTS PAYABLE 307 3 J 3 i J: • 1 COMPANY ^p T i ^ f 5 1 C* s < d j c 5 H G - <*£ -3 11 . 1 $ 1- in _i i-H IP ~&" egg -<£- y i 3 - 2- 5e 5 UJ K c a s c o t I £ 1 .2 c 1 dZ in c 1 c z c •n > CI ! i s c. jj c S c >. & 1 > ci- in 3 s c J3- S id < H \ Z UJ a LV ID U re U n 8 cS 10 > u 'J u. 1 2 ■a c ra in ro o e r, i jJ IL UJ O 9 c e 5 B C s u 1 1L UJ UJ a 8 C O "tfl J < 5 I ~c 3 5 < •a 1 c o a s £ 1 L. s c u 3 <: 1 If) h- bJ >n ui •t _j < c ([ ' \ ( 3 ( o ^ O o STATEMENTS 3>7 Commission list are given, and numbers 424, 426, 428, and 439 are omitted. The accounts under "Corporate Surplus" differ from the Commission list. The slight variations from the Commission list of accounts represent merely a point of local opinion. The writer thor- oughly approves the Commission's classification both for profit and loss accounts and for the general balance sheet. Monthly Operating Earnings and Expense Reports When the expense ledgers are closed for the month, the figures for the earnings and expenses of the company as a whole and by divisions may be drawn off for proving on large sheets, as illustrated by Forms 131 and 132. THE WESSEX COMPANY/ FADMNflS AND FXPFKKFS 1 r 1 1 Passenger Revenue f Z Baggage Revenue 3 Parlor. Sleeping, Dining, 3nd Spec. Car Rev. L 4 Mail Revenue -J 1 — TOTAL REVENUE fROM TRANSPORTATION E 10 Station and Car Privileges X 11 Parcel Room Receipts X IZ Storage / I TOTAL MISCELLANEOUS REVENUE =ff f TOTAL OPERATING REVENUE TOTAL OPERATING EXPENSES NET OPERATING REVENUE EXPRESS DEPARTMENT 5 Express Revenue 6 Milk Revenue i: TOTAL EXPRESS DEPT. REVENUE — ■' : 24B Express Stations and Platforms x 38B Vehicles and Horses ) i r^T ~^- — ^~ TOTAL EXPRESS DEPT. EXPENSES _■" NET REVENUE EXPRESS DEPT. L E Form 131. Earnings and Expenses. Size, 16 X 14. 3i8 "INSIDE" ACCOUNTING WORK THE WESSEX COMPANY/ f SHEET NO. » 1 Superintendence of Ways & Struct / 2 Ballast ! 1 3 Ties j 4 Rails 1 - i TOTAL WAY AND STRUCTURES n- £ 29 Superintendence of Equipment i I 30 Passenger and Combination Cars 31 Freight, Expressed Mail Cars -1- 1 TOTAL MTCE. OF EQUIPMENT 1 c 45 Superintendence of Fbwer 46 Fbwer Plant Hdgs, Fixtures & Grounds 47 " Equipment 48 Substation ■ _, • TOTAL POWER — ) / TOTAL (Carried Forward to Sheet No 2) = - = Form 132. Operating Expenses. Size, 16 X 18. STATEMENTS 319 After the figures have been proved with the general ledger totals, they should be transferred to sheets of portfolio size, as on Forms 133, 134, 135, for permanent pen and ink copies. THE WESSEX COMPANY EARNINGS AND EXPENSES for the Month Inc -Blade Dec-Red EARN1NQ5 for. _.Moj ended Inc -Black Dec -Red 191 191 I9I I9I 1 Passenger Revenue 2 Baggage Revenue 3 Parlor and Special Car Revenue 4 Mail Revenue TOTAL REVENUE FROM TRANSPORTATION "I— — - 10 Station and Car Privileges 11 fbrcel Room Receipts 12, Storage TOTAL MISCELLANEOUS REVENUE TOTAL OPERATING REVENUE TOTAL OPERATING EXPENSES NET OPERATING REVENUE Mileage Operated (l 5 < and 2 nd TracksJ_ Revenue Passengers Carried Tree Tickets Collected TOTAL REVENUE CAR MILEAGE Non-revenue Motor Car Mileaqe " » Trailer * •' TOTAL CAR MILEAGE Per Cent, of Operating Exp. 1b Earnings Dailv Average Receipts " " Expenses " " " 1 Form 133. Earnings and Expenses. Size, io 1 /^ X 12. Form 133 gives a summary of the month's earnings. First are given the 19 Operating Revenue accounts in the Interstate Commerce Commission's "System," pages 43-49. Following "4. Mail Revenue" are the revenues from express, milk, freight, and switching. Following "12. Storage" are demurrage, telephone and telegraph service, and rent of tracks and facilities, of equipment, of buildings and other property. The lower part of the form shows, following "Free Tickets 320 "INSIDE" ACCOUNTING WORK Collected," seven headings giving statistics regarding trans- fers, K. W. H. supplied, and mileage for all classes of cars, and following "Daily Average Expenses," twelve headings ana- lyzing car-mile expense and traffic. THE WESSEX COMPANY sheet 2 npEPATiNr; fxpfnsf.s For the Month .. . Inc-Black for Mos. ended Inc-Black 191 19 Dec-Red I9i 191 Dec- Red Brought Forward From Sheet No. 1 45 Superintendence of Power 46 Power Plant Bldqi Fix. &Grounds U~ 47 Fbwer Plant Equipment 48 Substation Equipment OPER/ THE WESSEX COMPANY sheet i \T\HG FXPFNSF.S fc 3 For the Month. Inc-Black Br... Mcsended Inc-Black - 191 191 Dec-Red 191 191 Dec-Red ~ 1 5up'fnce.of Way and Struct Z Ballast 5Ties -m 4 Rails 1 jT i i ii rz^-= ^T 1 1 Jl 1 1 II 1 | fl- ^M- 28 Equali3ation-Way and Struct ' TOTAL WAY AND STRUCTURES c 29 Supfnce of Equipment — ; 30 Passengers Combination Cars ip- 1 'if ^-rX~TZCXX- — II 1 pip 44 Equali3ation- Equipment T__J_Jl_j i TL-jU^-"- TOTAL MTCE. OF EQUIPMENT BE E : C -- Total (Carried Forward to Sheet 2 II III L -W^On i^Y-r^P-ii — " i, L, ^ TIT) 4= - " y/ r.eu\ or trama lacnmKs — " 98a Rent of Equipment Cl 99 OtherOperations-Dn 100 Other Operations -Cr. TOTAL QEN1 AND MISC. EXPRESS DEPARTMENT EXPENSES GRAND TOTAL OPERATING EXPENSES Form 134. Operating Expenses. Size, 10^ X 12. STATEMENTS 321 Form 134 is a very elaborate report, made out on two sheets, shown as 1 and 2 in the illustration. Its headings are practically identical with the T ^o headings prescribed by the Interstate Commerce Commission "System," pages 9- \ with the exception of the accounts numbered by the Commission 65, 76, and yy. These refer to express expenses and are given instead on Form 135. On Sheet 1 there are 28 headings dealing with "Way and Structures," and 16 dealing with "Maintenance of Equip- ment." On Sheet 2 there are 18 dealing with "Power"; 13 with "Conducting Transportation"; 4 with "Traffic"; 18 with "General and Miscellaneous." THE WESSEX COMPANY EXPRESS DEPARTMENT STATEMENT Of EARNINGS, EXPENSES. ETC Note - This Statement 15 intended to show how much Net Revenue is received from this Business as agamst what might be received, as a (fe-centage of Gross Revenue, if the business were handled by an outside Enpress Comp3ny This includes the specific expenses of the Enpress Susmess together with an equit- able proportion of the administration and general office expenses It docs not include dry charge for Mam+erance of Track, bnecjrEau'pmenf, or for Power or other Facilities furnished Form 135. Express Earnings and Expenses. Size, 10Y2 X 12. 322 "INSIDE" ACCOUNTING WORK Form 135 is principally a detail made up from the two preceding reports. The figures for the month and for the current year, compared with the preceding year's figures, are shown at the left and right. Under "Earnings" are given, in addition to the headings shown in the illustration, those num- bered 12, 13, and 15 on the Interstate Commerce Commission's Operating Revenue list. Following "67b, Miscellaneous Car Service Expenses" come those numbered 68, 69, 76, yy, 80, 83, 84, 85, 89, 94, 96, 97, 98 on the Commission's Operating Expenses list. Following "Total Revenue per Car Mile" are given also Total Operating Expenses per Car Mile, and Net Revenue per Car Mile. The elaborate statements described above, constituting the final summary of the company's business, must be prepared, of course, with the utmost accuracy. Most of these statements are made up by the bookkeepers, but they should be passed through the hands of the statement clerk, when there is one, before going to the stenographers. Before finally passing these balance sheets and income state- ments, the statement clerk should make sure that all notes or memoranda which should be shown upon them are duly made. It may be remarked, however, that inasmuch as this mate- rial has been largely standardized by the Interstate Commerce Commission, these important statements present actually less difficulty of treatment — aside from the need of accuracy — than do some of the other reports, etc., mentioned heretofore. Monthly General Stores Receipts and Disbursements This report, which is almost as inclusive and important as those just mentioned, will be compiled from the general stores detailed ledger on Form 136. This statement shows: the divisions of the company; the balance in money value of materials on hand the first of the month; the receipts of material during the month — this mate- STATEMENTS 323 v - c"£ t-^ re >S re re « CTl a> COS W 4> . >i > Or iJ (4 ba c < 1 CO re«? COS O H Ph ■a *C 1- — 4j re 3 " bfl CD CO co» ^C Q Sg" 2 •3 c re d, (A < 1— t 3 0. xn 09 (0 s 4> •O — *3. a 3 CO c c re Ol- X — -H ra a c/3 n u EC CO 3 'u V id a re L. O w § CO HI «*-c O L. H c E en 03 « c re L. 1- u 4> > > < s 10 *" O t- 3 ba c CO 1- EL t~- '£ Q. CO UI O O CO reco 4-1 cc re ^ c 03 a 6 < 0) ■a CD >. re 3 m S re s 1 re 3 W P 4) O > to c a)

w-V_--*w--V^-^^-S^-V-^^-^-S_ J Form 141. Authorization Statement (left and right half). Size, i6 l / 2 X 16. STATEMENTS 331 the progress of the work. These are extremely important figures, used very largely by a number of the officers. THE WESSEX COMPANY/ COMPARISON OF MAINTENANCE Of EQUIPMENT EXPENSES (EXCEPT POWER STATION FOR r 1 1 TOTAL CARS AND LOCOMOTIVES Labor Material _ Appropriations Current Cars and locomotives, Accb 3Z-J5-34 Year h ■ » » - 52-33-34 LastYear Increase -Black Decrease - Red 1 ELECEQIPMT.-CARS & LOCOMOTIVES Labor Material Appropriations ...) Misc. Equipment, Acds. 35-40A Year — => " •» •• 35-40A Last Year Increase - Black Decrease - Red SHOP MACHINERY AND EXPENSES Labor Material L — Increase- BlacK Decrease- Red Total Maintenance of Equipment C( 4 r e r ar 1t « " " 1 LastYear Increase - Black Decrease - Red Total Car Mileage / Comptroller Form 142. Comparison of Maintenance of Equipment Expenses. Size, 16 X 13. Maintenance of Equipment Statement This statement, which is also indispensable, is prepared on Form 142. It should be prepared as early as possible in each month. As an additional precaution, the figures taken from the expense ledgers of the company should be checked with the earnings and expense sheets (Forms 131 and 132). The accounts are grouped under four general headings: 33 2 "INSIDE" ACCOUNTING WORK Cars and Locomotives; Electric Equipment, Cars and Loco- motives; Miscellaneous Equipment; Shop Machinery and Expenses. Under each of these are four sub-heads: Labor, Material, Appropriations, Miscellaneous, and the group totals compared with those for the previous year. The separation of labor, material, authorization, and miscellaneous expenses is a point which is of decided help to the operating officials. Comparison of Maintenance of Way and Structures Statement This statement on Form 143 is similar to the "Comparison of Maintenance of Equipment." The accounts are grouped THE WESSEX COMPANY/ COMPARISON OF MAINTENANCE: OF WAY AND STRUCTURES FOR MONTH OF Bl| r TOTAL TRACK AND ROADWAY Labor Material , i Appropriations — - 1 — =. Current Track and Roadway, Accts. 1-19 Year Increase -Black Decrease- Red ELECTRIC LINES Labor Material Appropriations Electric Lines. Accts. 20-24 Y eaP t = == f\ 1 — > 3£ » -20-24 LastYear Increase- Black Decrease- Red BUILDINGS AND FIXTURES Labor I Material L Buildings and Fixtures, Acds. 25-28 feaV ) | Increase- Hack Decrease- Ped Total Way and Structures. ^I"' » " « « LastYear t Increase - Wack Decrease- Red t OATF i / Comptroller Form 143. Comparison of Maintenance of Way and Structures. Size, 16 X ioy 2 . STATEMENTS 333 under three general headings: Track and Roadway; Electric Lines; Buildings and Fixtures. These are subdivided exactly as in the case of the maintenance of equipment form just given. Cost of Oil Used Statement This statement may be conveniently prepared on forms furnished by the oil company. It is made up from Form in (see page 251) sent in by the division managers. As soon as the statements are completed, they should be sent to the mechanical engineer's office to be checked up, and should then be handed to the chief clerk, who will see to their proper distribution. Miscellaneous Monthly Statements Among the many other statements which might be pre- pared monthly, if the management desired, are: A monthly telephone cost statement statement showing compensation payments showing hours worked by conduc- tors and motormen of additions and betterments showing cost of coal and handling of express and freight handled It will be observed that to draw a clear line of distinction between some of these and some of the reports prepared in the statistician's office (Chapter XXIII) is not always easy. Yearly Statements and Reports Under this special division will naturally come the annual figures for each fiscal year and in addition the annual reports to various governmental commissions. About these there is 334 "INSIDE" ACCOUNTING WORK not much to be said. The Interstate Commerce Commission requires a yearly statement from all street railways under its jurisdiction. All the different states, moreover, most of which have public service commissions, require annual statements to be filed with the proper state department. Public Service Commission Statements It seems hardly necessary to discuss here the statements required by commissions. In the first place, those of the differ- ent states vary so widely that any complete treatment would be very lengthy. In the second place, the requirements for them are very explicitly set forth by the commissions them- selves and are easily obtainable. It may be said, however, that owing to the great demand upon the various companies by the public utilities commis- sions, the tax commissions, and the Interstate Commerce Com- mission, it is advisable to have a first-class clerk specially assigned to this line of work. Statements to Officials and Stockholders of the Road Aside from the reports to commissions, it is a rapidly growing practice for large street railway companies to get out an annual report to their stockholders or directors, and this annual statement is usually printed in large quantities so that it can be delivered to the general public if desired. Great care should be taken to see that these annual statements are pre- pared properly and in accordance with the rules prescribed by the utilities commissions, and especially to make sure that they agree with the totals shown in the regular monthly statements of the company. The yearly statements, in fact, while cover- ing a longer period, present comparatively little difficulty in preparation, except where special information is called for. Of this special information, it is true, a good deal is usually STATEMENTS 335 called for, so that the work in connection with the yearly- report is after all considerable. Many other yearly statements and reports may be made up, depending, of course, upon what the president and other offi- cers of the company may desire to know. CHAPTER XXII DETAILS OF DEPARTMENTAL MANAGEMENT Filing Systems Owing to the organization of the business of a street rail- way company, the amount of routine matter — forms, reports, letters, etc. — is unusually large. A great deal of this routine matter has to be kept on file in either general or division offices. A good filing system is therefore of particular importance. The files of a street railway company are different from those of a manufacturing company. A manufacturing plant or a wholesale house may perhaps arrange its files geographi- cally to facilitate reference to a particular territory, or alpha- betically, or according to modifications of the geographical method, by stations, etc. With most street railway companies, however, it has been found advantageous to file by subjects. This method is particularly good for street railways because as a usual thing the material to be filed does not run into rami- fications of subjects. For instance, the question of tickets, or armatures, or rails is covered by a file for each subject. There are cases where these files are divided and subdivided, but in most cases the one subject file will be sufficient for the purpose. Where it is possible, a large vault should be provided so that all files can be kept where they can be carefully looked after and protected from fire and danger of loss. Receipts should be provided so that when papers of any kind are taken from the vaults, a receipt can be signed for them. 336 DETAILS OF DEPARTMENTAL MANAGEMENT 337 The clerks in charge of the files should follow up all papers not returned within a reasonable time and keep the files as com- plete as possible. Method of Destroying Old Records As the accumulation of letters, reports, forms, etc., is con- stantly outgrowing any possible storage facilities, old papers must periodically be destroyed to make room. The following procedure may be followed: The comptroller is given authority to decide regarding the destruction of any records. All managers, superintendents, cashiers, stores keepers, express agents, claim agents, etc., pre- pare lists from time to time which show the records they wish to destroy and designate the periods covered. These lists are forwarded to the comptroller and if approved by him are sub- mitted at the next regular meeting of the board of directors for their approval. After the approval of the board has been obtained, a "Certificate of Destruction" (Form 144) is made out, describing the records and showing the periods which they cover. THE WESSEX COMPANY Certificate of Destruction of Accounts, Records, or Memoranda Description Period or Periods Covered I have this day destroyed the above in accordance with authority dated and certify that no other Accounts, Records, or Memoranda have been destroyed herewith. Witnessed 1. Signed 2. 3. Dated Form 144. Certificate of Destruction of Records. Size, RVo X TD. 338 "INSIDE" ACCOUNTING WORK This certificate is forwarded with a letter of authority to the person who requested permission to destroy the particular records. On receipt of the letter of authority and the certifi- cate, the records are immediately destroyed and the certificate signed and dated by the official who destroys them and by three others as witnesses. The certificate is then returned to the comptroller's office and filed as a permanent record. Labor-Saving Devices There is so much detail work in connection with street railway accounting that it is important to use all of the modern labor-saving devices. All modern offices, of course, are pro- vided with telephones and in large ones an intercommunicat- ing set should be installed ; this saves many steps and adds to the efficiency of the office. The arrangement with regard to the stenographic work depends entirely upon circumstances. In a large office, how- ever, the general statement stenographers should be in a sepa- rate room so that their work will not interfere with the work of the general letter-writing stenographers or of special stenographers to the different officials. The work should be under a competent head stenographer who is acquainted with all details and can lay the work out properly for each one of the staff. No modern office of any size whatever should be without a duplicating machine of some sort. Computing machines are also necessary. No large office can afford to be without up-to- date computing machines adapted to the particular kind of work. In the mailing room, also, machines such as stamp affixers, envelope sealers, addressing machines, etc., will be found very useful. In addition to the various kinds of typewriting and com- puting machines already mentioned, there are some special machines for the handling of cash and tickets. Among these DETAILS OF DEPARTMENTAL MANAGEMENT 339 is a machine for sorting tickets from cash, another for sorting coins into the different denominations, others for counting the cash by denominations — including the dropping of the coins into sacks ready to be enclosed in coin wrappers so that the operator has only to remove the filled wrapper and crimp the open end. A machine for counting tickets, when properly operated, will count from 25,000 to 30,000 tickets in an hour. Economies All employees should realize the importance of economy in the office. In the railroad office there are various ways of pro- moting economical operation. Much of the communication between different offices of the company may be carried on company cars, saving both time and expense. An effort should be made to cut down the use of the tele- phone for long distance and toll line purposes when the matter can be handled satisfactorily by correspondence. In all large concerns economy in stationery is an important matter. A considerable saving can be effected : ( 1 ) by cutting paper for forms, etc., in the most economical sizes so as to minimize waste; (2) by using a cheaper grade of stationery for the vast amount of correspondence between offices. A rail- road is better able to economize in this way than some other kinds of business concerns whose correspondence is chiefly with their customers. Fidelity Insurance Some companies purchase this insurance, while others do not consider it necessary. The writer is strongly in favor of it. No special record is necessary other than an alphabetically arranged card record giving the name of the employee and date and amount of bond. 340 "INSIDE" ACCOUNTING WORK A most important question, of course, is that of the amount for which the employee should be bonded. A tentative set of instructions based upon experience has been prepared as follows: i. Cashiers, car receivers, cash clerks, and messengers should be bonded for 75% of the maximum funds within their control at any time. In cases of cashiers, the maximum funds represent the aggregate of the weekly pay-roll, one day's receipts, and the working fund. The assistant cashier, who in the absence of the cashier performs all the duties of the cash- ier, should be bonded in the same amount. The maximum funds, so far as cash receivers, cash clerks, and messengers are concerned, represent funds actually handled by them, or located in safes to which they have access. The fact that at times they might have two days' receipts on hand should be considered. Clerks working in cashiers' offices who do not have access to the safes containing large sums of money, should be bonded for $1,000; this has a moral effect if nothing more. In determining the maximum funds, in every case, the busy season of the year should be taken into consideration. 2. Claim agents should be bonded for the amount of their working fund and $1,000 additional to cover possible fraudu- lent settlements, or advances from other claim agents and cashiers from time to time, to increase the working fund in cases of emergency. The assistant to the claim agent, who may perform all the duties of the claim agent in his absence, should be bonded for an amount equal to that of the claim agent. Other assistants to the claim agent should be bonded for $500 to cover funds entrusted to them by the claim agent, and possible fraudulent settlement of claims. 3. Timekeepers should be bonded for 10% of the weekly pay-roll made up by them. The minimum bond should be $500 in every case. 4. Stores keepers who handle large amounts of materials, DETAILS OF DEPARTMENTAL MANAGEMENT 34 1 say $50,000 worth, should be bonded for $1,500 and their next assistants for $500. Stores keepers at smaller places should be bonded for $500. 5. Express agents and cashiers should be bonded for $2,000 if the station is fairly large ; and for $1,000 or so if the station is small. Express messengers, drivers, clerks in the office, and those receiving clerks and billing clerks who handle funds should be bonded for $500. Messengers and others who may handle substantial funds of the company for transporta- tion from one point to another, as for example those who carry the railway receipts to the cashier's office, should be bonded for the maximum amount so handled. 6. The clerk in the comptroller's office having charge of the ticket stock should be bonded for $2,000 and his helpers for $1,500. These are the only employees who should have access to the stock-room. 7. Local officials having the combinations of any of the safes which contain money should be bonded for an amount equal to the maximum funds in the safes at any time. 8. Employees working for more than one company, in case two or more companies should be represented in the same office, should be bonded separately by each company served. If there are other employees to be bonded, the above may be a general guide. Advice of any changes among the bonded employees should be sent promptly to the comptroller's office. Working Library A most useful adjunct of a modern accounting office rec- ommended recently by the Educational Committee of the American Electric Railway Accountants' Association is a small working library of books on accounting and related topics. Such a working library has been developed in con- nection with the system here described. The benefits have 342 'INSIDE" ACCOUNTING WORK been found to be twofold. Much time is saved in the office by having authoritative books conveniently at hand for de- termining points which come up in the course of the daily work. Moreover, the library distinctly promotes the general efficiency of the department employees, who are encouraged to familiarize themselves with the books by means of a loan system. As the activities of the accounting department cover a wide range of matters, it has been found useful to include in addition to books treating specifically of accounting, other works of a practical nature dealing with various related aspects of business. Among the books which have been found useful in a working library are the following: Accounting Practice and Procedure Accounting Theory and Practice Accounts, Their Construction and Interpre- tation Administration of Industrial Enterprises Advertising, Its Principles and Practice Applied Theory of Accounts Auditing, Theory and Practice Bookkeeping and Accountancy Business Finance Commercial Law Corporate Organization and Management Corporation Accounting Cost Accounting Credit, Its Principles and Practice Effective Business Letters Electric Light Accounts Electric Railway Auditing and Accounting Elements of Accounting Elements of Business Arithmetic Factory Organization and Administration Getting the Most Out of Business Graphic Methods for Presenting Facts Dickinson Kester Cole Jones Tipper, Hotchkiss, etc. Esquerre Montgomery Rowe Lough Spencer Conyngton Bennett Nicholson Blanton Gardner Edwards Force Klein Bigelow Diemer Lewis Brinton DETAILS OF DEPARTMENTAL MANAGEMENT 343 Indexing and Filing Journal of Accountancy (The) Modern Accounting Net Worth and the Balance Sheet Philosophy of Accounts (The) Principles of Depreciation Principles of Scientific Management Principles of Scientific Management Proper Distribution of Expense Burden (The) Railroad Accounting Railroad Finance Railway Transportation Science of Accounts (The) Style Book of Business English Unified Accounting Methods for Industrials Hudders Ronald Press Co. Hatfield Stockwell Sprague Saliers Taylor Thompson Church Hooper Cleveland Blake and Jackson Bentley Hammond Woods CHAPTER XXIII THE STATISTICIAN'S WORK New and Important Work The material already considered in the preparation of the statements is further analyzed and studied when it reaches the office of the statistician. The systematic studying of costs and of methods of operation is a new but most important devel- opment in large street railway systems, as in all modern businesses. Street railway officials throughout the country have found that the cost of labor, material, and everything pertaining to street railway transportation has increased, while the fares have remained the same. Therefore it is necessary under present operating conditions to have minutely accurate infor- mation, showing unit costs of power production, maintenance of track and roadway, maintenance of buildings, up-keep of rolling stock, etc. This does not mean merely the figures which are ordinarily prepared in accounting departments, but further unit costs, which will enable the officers of the road to know the relative efficiency of various types of equipment. Moreover, a great many times it is necessary to know the cost of operating one particular line or even a single car on a line. Competition has developed also in the form of automobile transportation, and this has added to the necessity of compil- ing more minute statistics. In addition to the statistics required by the officers of the company, the public service commissions of the national gov- ernment and of the various states have in some instances 344 THE STATISTICIAN'S WORK 345 extended their requirements, and this has put a further burden upon the accounting department. These and other reasons have led to the establishment of a statistical office, usually and properly attached to the account- ing department. In progressive companies the statistician, or cost accountant, as the person in charge is often called, is usually at the head of a large and steadily increasing staff. The statistician is charged with preparing information to show the various unit costs referred to above. Conservative Methods of Presenting Statistics It may be noted here that in the presentation of statistics there are two distinct methods, both widely used. The first method adheres to a plain display of facts, classified under proper headings in condensed form, with such continuity or sequence in time or incident as to show clearly all results, the source and genuineness of which are not subject to doubt or surmise. A second method is frequently adopted by specula- tive statisticians, who use as a basis the accounts of a fiscal period and by a process of extreme analysis endeavor to build a statistical fabric with the object of proving or disproving certain theories. A plain relation and classified presentation of principal facts as portrayed in the first-mentioned plan, is decidedly prefer- able, inasmuch as the plain truth thereof is sufficient for the mind of any average man to grasp and adequate for the pur- poses of comparison and judgment. The second method, while based upon a foundation of fact, is apt to be so colored and accentuated and so burdened with unnecessary detail and abstruse analysis, as to tend to mislead the open-minded per- son, who is seeking facts only, and to induce him to accept what may be erroneous or biased conclusions. The first method should be followed in the statistical office of every street rail- way company, 346 "INSIDE" ACCOUNTING WORK Extension of Statistician's Work After the statistician's office is established, many and varied uses in connection with the different phases of the com- pany's activities soon suggest themselves. Among the investi- gations which have been recently made for one office that has come under observation are the following: Statements explaining high points in operating expenses of certain power stations. Statement of power used on one division in connection with a foreign company which operates over a portion of the lines of the'home company. Statement of earnings and expenses per car mile for various railway companies in four adjacent states with a view to determine the average operating costs per car mile. To describe the work of this office in detail would require much more space than is here available; but an outline of a few of its most important duties will suggest the possibilities. Shop and Costs Records There is the matter of shop records and costs, which can be carried into all branches of shop work and into various kinds of costs and unit costs. One of the most useful phases of this inquiry is a wheel record, which comprises the follow- ing reports: i. A report of pressing on and off wheels is made each day by the foreman of the wheel shop on Form 145 to the master mechanic of each division. The report gives all the data in connection with the pressing of wheels on axles or their pressing off from axles. 2. From these daily reports a card record is kept in the master mechanic's office on each division on Form 146, THE STATISTICIAN'S WORK 347 THE WESSEX COMPANY Report of Pressing Off Wheels To the Master Mechanic The following wheels were removed at Shop Axle No. . . . . . Size Car No Removed by (Tons ) (Cause of) Wheel No Date (Pressure) (Removal) . . (Mate ) (Tons ) (Cause of) (Wheel No.) Date (Pressure) (Removal) . Man'f s Kind* Diameter Tape Size Remarks : ♦Designate cast iron wheels as follows: (F. C. S.) or (D. B. 50) or (D. B. 22-S) Date Removed Foreman. Form 145. Report of Pressing Off Wheels. Size, 8}4 x 5/^- CAR WHEEL RECORD THF WFSSFX COMPANY niwunM WHFFI NO FTTTFn RV MAN'F TONS PDFS^JPF KIND SI7F OFAXI F DIAMFTFD DATF APP1 1FD PATF ON WHFF NO. OF Mffl E WHEEL PUT IN REMOVED MILES CAN WHEEL BE REAPPLIED Car No. Date TapeSije Date Cause TapeSije In Service Remarks Form 146. Car Wheel Record. Size, 8 X 5^. 348 "INSIDE" ACCOUNTING WORK 3. On another set of cards an axle record is kept on Form 147. 4. Another report is made of wheels and axles put under or removed from cars on Form 148. 5. Finally, a monthly report based on all these records is made by the master mechanic to the statistician in the comp- troller's office on Form 149. AXLE RECORD THE WE55EX COMPANY AVI F Nn DIVISION Purchased Prom Made by Turned at Order No. ReqTi No. Heathy Shop Specification No. Plan No. Date Stock DATE INSTALLED CAR NO. FITTED TO WHEELS DATE REMOVED CAUSE SIZE NUMBERS t?pmarW<; -- Form 147. Axle Record. Size, 8X5. Utility of Shop and Cost Records When all of the above-mentioned reports and records have been written up, it is evident that full information is available as to records of wheels and axles. These records are kept on file in the master mechanic's office. If they are in good order, the master mechanic is in a position to advise the general office when wheels or axles are put on or taken off cars, incorporat- ing the information in a monthly report to the statistician's office. THE STATISTICIAN'S WORK 349 THE WESSEX COMPANY Report of Wheels and Axles Put Under or Removed From Cars The following wheels and axles have been (Put under ) _ ... ._.„ (Removed from) Cars this date. Car No. Wheel No. Axle No. Wheel No. Cause of Removal ^^^^^ Date... Foreman Form 148. Report of Wheels and Axles. Size, S l / 2 X 5^2. THE WESSEX COMPANY To Statistician Monthly report of Car Wheels and Axles removed from Date Removed Car No. Wheel No. Wheel No. Axle No. Date Applied Kind Cause of Removal 1 1 Master Mechanic Form 149. Monthly Report — Wheels and Axles. Size, S l /i X I2j4. 350 "INSIDE" ACCOUNTING WORK When the statistician receives this monthly report he refers to the car number and the dates on which the wheels were applied and removed, and from the individual car mileage rec- ords described below he can determine the exact number of miles made by that car during a given period and thus the exact number of wheel-and-axle miles. When the car mileage has been added to the wheel report, a summary is made up for the chief engineer. This record in the chief engineer's office constitutes a very important factor in buying car wheels and axles, as from it one is able to deter- mine whether steel or cast iron wheels are better for a particu- lar division. This point has always been a matter of vigorous contention among master mechanics. After the above records are installed it would be well to have a clerk from the accounting department look in periodi- cally on the various master mechanics. If the latter fail to have the reports properly recorded on the cards, or if they fail to keep cards in proper order, this record will, of course, mean but little. The importance of the records should be impressed on all master mechanics. Cost records of a similar sort might be installed for gears, armatures, etc., to determine whether or not the kind in use is the best for a certain division. Car Mileage Practice varies a great deal among the different street rail- ways of the country in regard to car mileage. Some roads have on file the amount of mileage that the cars would make throughout the day if they were all run on their regular sche- dule. They add to this figure the extra car mileage, and deduct the mileage of the cars not run or interrupted for any reason during their trip, and thus arrive at a figure for the day. The same method is followed for other days in the month, after which the mileage for all the days in the month THE STATISTICIAN'S WORK 351 is added, thus arriving at the total for the month. The more scientific method is to obtain the mileage for each individual car, as this will afford a basis for valuable statistics of all kinds where a mile unit per car is required. By means of this individual car mileage the statistician is enabled to make almost any kind of study. Ordinarily this mileage is dealt with by mileage clerks in the general office, but in the system described in this volume it is handled by the statistician. Method of Recording Car Mileage The conductors report on their day cards, as explained in Chapter III, the mileage for every run, using mileage maps furnished by the engineering department. From these day cards the individual car mileage is figured in the office of the division cashiers, and a daily report is prepared on Form 150, "Record of Individual Car Mileage." This report, which is THE WE5SEX COM PAN y// RECORD OF INDIVIDUAL CAR MILEAGE / .DIVISION / 1 MONTH Of 191 ^"> psJ - _ n i I - II I II I II I II I II I II \ l_U LJ I U L Form 150. Record of Individual Car Mileage. Size, 14 X 17 retained in the division office, indicates the car number and mileage for all cars operated on the division reported, includ- ing passenger cars, express, freight, work cars, and snow 35^ "INSIDE" ACCOUNTING WORK plows. Form 1 50 is kept by routes, separate sheets being used for each route and for the various classes of mileage other than the regular passenger cars. At the end of the month the cashier adds the various sheets of the form and then has a complete record of mileage by cars and by routes. New sheets are started each month, and this record of individual car mile- age is kept in a loose-leaf binder which has been provided for the cashier of each division. From Form 150 the cashier makes out each day Form 151, which he sends at once to the statistician's office. These reports are there assigned to certain clerks who post the mile- age upon cards provided for such record. Two cards are pre- pared, as illustrated in Form 152, one white for the passenger equipment and one salmon-colored for express, freight, and work cars. Thus it is easy to keep the cards in order and to keep the miscellaneous equipment separate from the regular passenger equipment. The mileage clerks prepare statements each month as they are called for, showing the miles run by the various cars for different periods. In this way the number of miles run by car THE WESSEX COMPANY To the Comptroller. Division. Daily report of individual car mileage for 191.. Car No. Miles Car No. Miles Car No. Mile: Car No. Miles Car No. Miles I 1 1 1 1 1 ! i 1 1 1 | 1 1 1 ! > ! 1 1 Date Cashier Form 151. Daily Individual Car Mileage Report. Size, 8 x / 2 X 11. THE STATISTICIAN'S WORK 353 THE WESSEX COMPANY Mil FAf^P PFrOPD FOP TAP NO JAN. FEB MAC. APR MAY JUNE JULY AUG. SEPT OCT. NOV DEC. 1 1 3 30 31 Form 152. Mileage Record for Car. Size, 9^2 X nj^. wheels and axles placed on the various types of equipment and similar mileage statements may be prepared as needed. This individual car mileage is the basis of practically all shop costs. Car Hours Reports of car hours are of considerable importance for supplementing car mileage reports. Where statistics for this matter are required, the figures can usually be taken from the schedules of running time regularly prepared by the operating department. The hours run on each line each day may be obtained from the regular schedules made up in the offices of the division managers, which are modified of course from day to day. The hours for extra or "tripper" cars, as they are sometimes called, may be obtained from the extra schedule similarly prepared. The figures may be gathered from three reports which are turned in daily: Report of Extra Cars Run (Form 70) ; Mis- cellaneous Time Allowed (Form 71) ; and Changes of Run- ning Time on Regular Runs (Form 153). Forms 70 and 71 have been already shown (pages 164 and 165). 354 "INSIDE" ACCOUNTING WORK THE WE55EX COMPANY Report of Changes in Running Time of Regular Runs Run No. CONDUCTOR MOTORMAN Car Due at Barn Car Arrived at Bam Extra Time REASON ..... r- . Total Extra Time- Date __ 5upt. . Starter Form 153. Report of Changes in Running Time. Size, 8J/2 X 14. These reports are all prepared by the foremen at the dif- ferent car houses. The extra car hours are figured on sepa- rate sheets, and when finished are posted in the regular car hour book and the figures added to those taken from the regu- lar schedules. The hours for express cars, chartered cars, revenue freight cars and cars carrying company business, shifting cars, and work cars will be reported on the day cards which every conductor in charge of a car turns in regularly, and when compiled they are also posted into the regular car hour book. At the end of the month this book is totalled and the totals are shown on the earnings by routes statements and also on the regular car mileage reports. Inspection Reports The car mileage records just described make it possible also to keep accurate records of car inspections. A separate card is provided for each car assigned to the various divisions, and the mileage is regularly posted thereon so that a running total is kept. When a car has covered a certain number of miles, it is reported for inspection by the clerks in the statisti- cian's office who have this matter in charge. The frequency of THE STATISTICIAN'S WORK 355 inspection will vary, of course, according to the type of equip- ment on the car; for some perhaps 800 miles, for others 1,000, and others 1,500 miles. Where the car mileage is watched, as indicated above, it is possible to estimate the proper inspection time very accurately. For instance, a car on a 1,500 car-mile basis appears to have run 1,150 car-miles, according to the mileage card, and has three days to run before inspection, and it appears from the cards that this car averages 130 miles per day. It is accord- ingly decided to report this car at the regular time for inspec- tion, for if it maintains the average of 130 miles a day it will exceed the 1,500 miles allotted to that type of equipment, and even if it falls short it will presumably run over 1,400 miles. This method has been found to work out extremely well, especially where cars are run on the same route from day to day. In the spring and fall, when both open and closed cars are being operated, according to the weather, a car will run "over" or "short," not because of any fault in its equipment, but on account of the weather. The clerks working on this mileage from day to day, however, find that after a little experience they can judge the approximate number of miles the cars make and thus keep the inspections very close to the number of miles allotted to the various types of equipment. Forms for these car inspection reports are prepared for each division each day by the car mileage clerks in the statis- tician's office on Form 154, and are signed and sent out daily by the statistician. Where two or more inspection car houses are located on a division, the inspection reports are sent direct to each inspec- tion house on that division. For certain divisions where cars are inspected on Sunday, two reports are prepared on Friday of each week and the reports forwarded to the local division in due time so that the Sunday inspections can be made. W r hen the various cars have been reported for inspection, 356 "INSIDE" ACCOUNTING WORK THE WESSEX COMPANY Record of Cars for Inspection. Division Barn The Cars listed below have run approximately the num- ber of miles allotted for their Type of Equipment and should be inspected on Car No Car No. f ' ' v-^-p > ^-^— . . "^~^ 1 1 1 1 Original Duplicate Triplicate Quadruplicate Date Manager Master Mechanic Barn Supt. or Foreman Statistician Statistician Form 154. Record of Cars for Inspection (in quadruplicate). Size, %y 2 X n. a red ink check is placed on the card beside the date on which the car has been reported. When the full mileage has been received right up to the day of inspection, the total is inked in red so that the number of miles reported for the inspection shows up clearly on each card. Then the mileage is started over again for the next inspection, and added from day to day until the cars are reported for further inspection, and so on. If the mileage is required for some period other than the inspection period, it is a simple matter to add the various totals for the inspections together as may be required. Graphic Statistics for Officers Within comparatively recent years executive officers of street railway companies have found that graphs and charts THE STATISTICIAN'S WORK 357 save a great deal of time when they are made up carefully and accurately. The accounting department is continually collect- ing and distributing data to the various officers. After a few years these data accumulate in such quantities that it is neces- sary to summarize and condense them into small space, and many executives find the graphic method quite valuable. The principal advantage is that when information is presented in chart form the other party can readily comprehend its signifi- cance, and is more likely to draw correct conclusions than if the same information were given in a mass of figures. It is true that a great number of persons still prefer a state- ment made up of figures. It would seem, however, that the progress of the age is along all lines that will save time and money. Newspapers, magazines, and even political campaign committees have all realized the benefit of presenting facts by chart, map, or graph of some kind; some public schools, indeed, are now drilling pupils in the use of the simpler forms of charts. It appears more than likely that the future will multiply and perhaps standardize these methods. As graphs and charts can be made up in hundreds of dif- ferent ways, each official may decide which way best suits his particular need. The method most used by railway men at the present time, however, is that of plotting curves to show the trend of earnings, expenses, etc. CHAPTER XXIV AUDITS Checking of Processes Accurate and searching accounting is so important in the conduct of a street railway company that it is not sufficient to rest content even with such a careful system of checks and reports as that outlined in the preceding pages. Provision is accordingly made in all well-managed companies for frequent examination of the accounting machinery itself to be sure that it is in good running order; that is to say, for a system of audits. Audits should be made of the various division offices, of the other departments of the company and of the comptroller's office as well. Work of the Traveling Auditors A most important part of the comptroller's staff is there- fore the group of expert traveling auditors who are on the road most of the time, visiting the division offices, the express stations, and other outside offices. These examinations of outside offices must be systematic and thorough, frequent, and at unexpected times, somewhat like the visits of a bank examiner. The traveling auditors may visit one office or several offices on a trip, spending anywhere from three days to two weeks at a place. They may visit one division several times a year, but will make a complete audit of a division only once or twice a year. When away from the comptroller's office for more than three days at a time, they are required to send in reports of progress. 358 AUDITS 359 When visiting the railway divisions the traveling auditors, before leaving the comptroller's office, should draft a special balance sheet and prepare such portions of the schedules of charges and credits as are obtainable from the comptroller's records, to be completed at the division office. As soon as these summaries are made out they should be incorporated in this special balance sheet of the cashier's accounts. The working program of a traveling auditor in a division office may be outlined somewhat as follows : i. Working Funds (a) Verify cash and receipts for disbursements on hand. (b) Prepare schedule of same. 2. Inventory and Sales of Tickets, etc., to be reported (a) Verify and prepare schedule of cash on hand for receipts enumerated for tickets, parcel labels, chartered car orders, conductors' and motormen's deposits, etc. (b) Prepare exhibit of ticket inventory and records of sales of tickets to be reported. (c) Verify inventory with actual tickets, etc., on hand. (d) Look out for reduced rate tickets, that is, the sub- stituting of these tickets for cash. 3. Balance Sheet (a) Prepare it. (b) The amount due the company should be certified by the division cashier as being correct. 4. Cash Book (a) Ascertain that the amounts due the last of the month according to the monthly balance sheets were bona fide items and were entered promptly during the following month. (b) Verify receipts as given in the cash book with the original records on Form 16 (page 39), ticket sales, employees' deposit, and chartered car order books. 360 "INSIDE" ACCOUNTING WORK It should be ascertained that the receipts are entered on the day received. If there is no daily ticket sale book in use, the accountant should ascertain from the weekly ticket report that the ticket sales as reported are entered on the cash book that week. (c) Verify deposits with the bank book. (d) Ascertain that the daily balance does not represent any part of the passenger receipts and that the receipts from other sources are deposited promptly the following day. 5. Passenger Receipts (a) Test with day cards, routes, cash fares, free passes, and transfers. (b) Scrutinize closely any changes in the total on the day cards, of free passes and tickets on account of reduced rate tickets. If the cash fare has been reduced on the day card on account of such changes, then ascertain that this amount of "over," after verifying with the cash slip, appears on the "over" list of that day. (c) Verify day cards with regular schedules and barn reports of extras, etc. (d) Test final daily reading on register reports with day cards. (e) Test actual readings. 6. Ticket Reports (a) Verify with employees' deposit stubs. (b) Verify with chartered car order book. 7. Unclaimed Wage List (a) Verify with local office records. (b) Ascertain if any should be cancelled and the reason. It sometimes happens that unclaimed wages represent time credited on the pay-roll in error. When there are such items, the accountant should examine the time slips, if any, and ascer- AUDITS 361 tain why, if the employee had not worked, these slips were passed by the foreman. 8. Employees' Deposits (a) Ascertain whether or not every employee affected has made the required deposit. 9. Statistical Reports (a) Car Mileage and Hour Reports: Verify total per monthly report with daily summary book. Test footings of summary book. Test daily figures per summary book as follows: Class A — With regular schedules, barn reports, and day cards of extras Class B — With chartered car orders Class C — With express car reports Class D-E — With freight car reports Class F-G — With work car reports (b) Report of Earnings by Routes: Verify with summary book Test footings of summary book Verify routing from day cards into summary book (c) Miscellaneous Special mileage reports and other computations ustd in settlements with other companies on trackage rights, etc. jo. Pay-Rolls (a) Verify with time sheets. (b) Verify conductors' time sheets with schedule of runs, and barn reports of extras and miscellaneous time. (c) Verify express motormen's time sheets with express car reports. 362 "INSIDE" ACCOUNTING WORK (d) Reconcile total time allotted conductors and motor- men per pay-roll daily, with the total time as per regular schedule, barn reports of extras and miscellaneous time, changes in running time, and express report. (e) Verify bonded list and comment on insufficient protection. (f) Witness one week's payment. (g) Verify distribution. (h) Ascertain that all time slips are approved. ii. Storeroom (a) Verify totals of each account with summary book or sheets of issues. (b) Verify footings of summary book or sheets. (c) Verify requisitions with summary book or sheets. (d) Verify classification as to proper account. (e) Test prices on requisitions with stock card and extensions. (f) Test quantities on hand. 12. Claim Agents' Accounts (a) Verify and prepare schedule of working fund. (b) Obtain certificate of bank balance and reconcile with balance as per check book. (c) Prepare list of checks drawn in settlement of claims and verify with vouchers released at comptroller's office since previous audit. (d) Ascertain what checks are drawn in settlement of claims only. 13. Electric Light, Gas, or Water Accounts, etc. (a) Investigate the cashier's procedure in paying bills and taking discounts. AUDITS 363 14. Special Ticket Agents Ascertain that the same individual or company is conduct- ing the business with whom contract was made in the first instance and that there is no question about their reliability. List of Inquiries The following list of questions must be filled in completely unless otherwise directed, and should be attached to the report which the traveling auditor turns in to the comptroller. Company Division Office Date 1. Name of division cashier 2. Residence 3. When was he appointed division cashier? 4. Was he previously employed by this company, and if so in what capacity and how long? 5. Rave there ever been shortages of any kind in his accounts? (Give brief details of such shortages, if any, stating the date of audit and amount of shortage.) 6. Did he ever serve as division cashier in any other office? 7. How many safes are there and what is their condition? (De- scribe each briefly.) 8. Is the conductors' safe of our standard type and has it a bell attachment ? 9. How are the safes protected at night? 10. Where are safes located? Are they so placed as to be visible from the street ? 11. Do conductors themselves deposit their money in the safe? 12. Is the money turned in in bags or in envelopes? 13. Who besides the division cashier has the combination of the safe? 14. When were combinations last changed ? Were the combinations changed on all safes when the last em- ployee having the combination left the service? 15. Is all money kept in safes overnight? 364 "INSIDE" ACCOUNTING WORK 16. Is there a copying press? 17. What clerical help does the division cashier have ? 17a. Are the daily reports made promptly? 17b. At what time sent out? 18. Does the division cashier keep his cash book according to require- ments? 19. Is the cash book balanced daily? 20. Is the over and short list properly made out and properly col- lected? How are collections of the short lists made? 21. Is the stub record of employees' deposits kept properly? 22. Has every man a deposit? Have instalments been promptly col- lected according to instructions? 23. Should any of the wages appearing as outstanding at the audit be cancelled? 24. Is a record kept of the numbers of all tickets received? 25. What checking is done on transfers collected ? 26. Is the cash book for the working fund properly kept? 2j. Did you accompany the paymaster when paying off? If so, was every name accounted for ? What pay-roll was checked ? 28. Does the comptroller's copy of the daily register report come direct? State exactly how the report is handled from the time the barn-man completes it. 29. Did the stubs of the employees' deposit receipts check properly with Form 28 since last audit? 30. Did the copy of chartered car orders in books on hand check properly with Form 28? 31. Did all the time slips that were checked agree with the pay-rolls? What pay-rolls were used ? 32. Were all time slips properly approved ? 33. Is the time of conductors and motormen proved against the schedule time each day ? 34. Are all time slips carefully filed and also working papers used in working up classification of charges? 35. What pay-roll classification did you check against the time slips? What did this check disclose? 36. Are all instructions regarding pupils' tickets being properly fol- lowed out ? 37. Are all records carefully and neatly filed, labelled, and preserved for the prescribed time ? Where are records stored ? AUDITS 365 38. How are transfers destroyed and how often ? 39. By checking the list of employees who should he honded against the office record of bonded employees, did yon find any per- sons who were not bonded or were not bonded for a sufficient amount ? If so, give details. 40. Does the division cashier keep a list of bonded employees and understand that we are to be notified of all changes in bonded employees ? 41. Are all funds adequately protected so there is no chance of theft by outsiders, excepting, of course, by violent methods ? In other words, could you, assuming the viewpoint of an outsider, be able to abstract funds under existing conditions without being immediately detected ? 42. Do timekeepers, or those whose duty it is to approve time, under any circumstance pay off or call for the wages of employees whose time they are supposed to keep or approve ? 43. Is the pay-roll money drawn out on pay-day? 44. Does the division cashier know our policy in regard to cashing checks ? 45. Is the working fund adequate or is it excessive? 46. Are all tickets kept in the safe or vault? 47. Is the stock of tickets and express labels and stationery kept down to the minimum and in good condition ? Is it apparent that any of the stationery is wasted ? 48. Are express labels properly handled ? Is the supply in the hands of conductors periodically checked ? When was last check made ? 49. Are letters filed carefully and instructions pasted in a scrap book? 50. Are all changes in conductors' day cards made in colored pencil or ink? 51. Are all the forms in use uniform with all other places? Is the day card standard? 52. Is there a 'phone. in the division cashier's office? If so, what business is transacted by it ? 53. Is the division cashier following any duties that are functions of the operating department; that is, issuing transfers and han- dling employees' outfits, etc. ? 54. Is additional help furnished the division cashier during the sum- mer season? If so, state number added, wages paid, time en- gaged for, etc. 3 66 "INSIDE" ACCOUNTING WORK 55. Are the records kept systematically and neatly and is the office neat and orderly? 56. What report of stores issues did you check against the issue slips? 57. What did the check disclose? Were the issue slips properly approved and made out in full and were the accounts, as far as you could ascertain, properly charged? 58. Was any material, especially valuable material, lying around unprotected? If so, give full facts. 59. Is the accounting system followed in the storeroom uniform with that of other places? 60. What reports of passenger receipts did you examine ? What was the result of the examination ? 61. Are the figures for the earnings by routes correctly compiled? 62. Are the figures for the other monthly reports of mileage, etc., correctly compiled? 63. Have we a record with this or other audit papers, a memorandum setting forth the method used in making up each of the monthly reports? 64. What monthly balances were checked to verify correctness of outstanding items shown ? 65. What dates were checked as to prompt deposit of all receipts? 66. Are conductors' returns checked from safes in presence of member of trolleymen's organization ? 67. What withdrawals from receipts for emergency requirements (i.e., for paying off men after snow-storm, etc., or advances to claim agents) were checked to determine that the funds were used for company purposes ? 68. Is system for accounting of lunch vouchers being followed and did you assure yourself that all payments therefor were legiti- mate? Auditor's Report No list of inquiries, however detailed, can represent com- pletely the examination which the traveling auditors are expected to make. Particular points call for special attention from time to time at the different offices. At the same time, of course, the traveling auditors must be considerate and fair in the conduct of their inquiry. When the examination of any AUDITS 367 office is completed, the traveling auditor makes out his report in full detail to the comptroller. The report is then carefully studied and recommendations, etc., which in the mind of the comptroller need attention are promptly acted upon. During the course of the audit the traveling auditor should make out a progress report to the comptroller at the main office somewhat as follows : Traveling Auditor's Report of Progress Railway Department Office Division Date .... Mr , Comptroller The following work has been completed : 1 . Working Fund 2. Inventory of Sales of Tickets, etc., to be reported 3. Balance Sheet of 4. Cash Books 5. Passenger Receipts. No. Days 6. Ticket Reports 7. Unclaimed Wage List 8. Employees' Deposits 9. Statistical Reports 10. Pay-rolls J Witnessed ! Checked 11. Storeroom 12. Claim Agent's Accounts 13. Special Ticket Agents 14. List of Inquiries Approximate date of completion of Audit 19. REMARKS Traveling Auditor 3 68 "INSIDE" ACCOUNTING WORK Instructions for Auditors The following additional instructions regarding the con- duct and work of the traveling auditors should be carefully observed: While the traveling auditor is in the home office the regu- lar office hours should be observed. While in outside offices the regular hours should be observed as nearly as practicable. If the conditions make it necessary to work beyond the regu- lar office hours, the auditors are required to comply with the demands ; no extra compensation is allowed for such overtime. When leaving the general office the traveling auditor should register in the usual way, either in a book kept for the purpose or upon a blackboard in the comptroller's office so that the comptroller may know at all times where his men are. If the work on the outside extends beyond three days he should send in a report of progress, in an envelope marked "Per- sonal." He should also send to the comptroller twice a week a memorandum informing him of the approximate date for the completion of his work and for his return to the home office. The traveling auditor should prepare his report upon returning to the comptroller's office, incorporating the data which he has gathered in the form of notes before leaving the division offices. These reports should be prepared in good shape and presented as soon as possible. All working papers should be securely fastened. While no fixed amount is allowed for traveling expenses it is expected that expenses other than carfare will not exceed a certain number of dollars per day. The probable time the audit will require should be considered, as hotels sometimes make better rates by the week than by the day. The lowest first-class through rate from terminal to termi- nal is allowed for railroad fares, and parlor car seats are allowed for trips of one hundred miles or over. Telegrams, AUDITS 369 telephone calls, and postage on firm's business are allowable expenditures. Traveling auditors while on engagements should bear in mind that they are representing the company and should be tactful in answering questions, etc. At all times they should treat the business of the company as confidential. If there is more than one accountant on the work, they should consult freely, as it is never a reflection on the capacity of the account- ant to consult with an assistant in regard to his work. Care should be given to personal appearance to uphold the credit of the general office. Supervision of Inventories The traveling auditors have the duty also of supervising the yearly or semiannual inventories of the division store- rooms, chiefly in order to make sure that the work is being carried through with good judgment, concentrated effort, and careful organization. The two main objects sought in the accounting depart- ment's supervision over the inventories are: the detection and elimination of all chances of fraud, whether to conceal dishon- esty or to support inefficient methods; the correctness of the inventories in the matter of completeness, quantities, values, proper classification and distribution, and the application of the proper principles of accounting. As a matter of precaution it might be well for the auditor to take charge of all the issue slips during the period of count and also the invoices for material received. He should see that all issue slips from the track service are being turned over daily. Inventory Procedure The general procedure should be to check up the bin cards (see page 425) and then check these with the regular stock 370 "INSIDE" ACCOUNTING WORK cards (see page 203). From the latter the typewritten inven- tory is to be taken. Some small storerooms do not have bin cards, and in these places of course the stock cards should be made to agree with the amount of material on hand in the bins by writing on the stock cards the year, month, and day, the "'ord "Inventory," and the quantity, unit price, and amount in dollars and cents. Bin cards should always be installed if practicable. Care should be exercised to see that the person taking the inventory adds material received after the count begins and before the date of completion, and that material issued mean- while is deducted. All bins should be numbered, as well as all bin cards and all stock cards, each one bearing its own number, and a small index should be prepared. This, however, is a matter of the local storeroom instructions, which should govern points of detail procedure. Need for Caution and Accuracy If the auditors discover, while taking the inventory, that the bin cards are not being used properly, full particulars should be reported to the home office. The bin cards should start off with the inventory of last year and show date, quan- tity, and price. Care should be taken to exclude any items which may be included in the fixed capital accounts of the company. This would include, for example, parts of cars which may be scat- tered in the shops but which belong to some particular car or cars; also material which may have been charged out to authorizations. In checking up the inventory and before it is finally com- pleted, special attention should be paid to changes in price on the stock cards, especially a change or increase over the previ- AUDITS 37j ous inventory when no purchases have been made during the past year. If a general system of storeroom accounting is in effect on all divisions, nothing should be changed except through written instructions from the comptroller's office. As, stated in the instructions to stores keepers (page 227), reports of inventories must be in the comptroller's office not later than the stipulated date. If additional help is needed in order to make this possible, application should be made by the stores keeper direct to the comptroller. Treasury Department Audits In a large company the treasury department should be entirely separated from the accounting department. One of them accordingly acts as a check upon the other. Inasmuch as the accounting department should handle no cash whatever, it is possible and useful that it should go over the accounts of the treasurer perhaps twice a year. The probable program of such an audit would be somewhat as follows: 1. Verification of deposits in the bank of the cash receipts as shown on the cash book for at least one month prior to the date of the audit. 2. Comparison of all checks as paid by the bank during the month just prior to the audit, with the entries on the cash books; and comparison of checks entered on the cash book during the month, which have not been paid by the bank, with the record, as per the check book stubs; or, if it happens that no check book is used, as is the case with one of the largest street railways where voucher drafts are used entirely, then verification with the similar record book which takes the place of the check book stubs. 3. Verification of cash book footings for the month. 372 "INSIDE" ACCOUNTING WORK 4. Reconciliation of the cash book balances with the bank balance, as per certificates received from the bank. 5. Verification of payments by the bank as compared with cancellation on the treasurer's books of checks that appear as outstanding on the date of the audit but which did not appear as outstanding thirty days prior to the audit. 6. Verification of deposits to the bank with cash receipts as shown on the cash book from the date of the audit to at least ten days following the date as of which the audit is made. 7. Comparison of checks as paid by the bank during the month following the date of the audit with those outstanding, as of the date of the audit. If the above program is followed, it will insure a very good check on the treasurer's office. There are, of course, certain preliminaries which should be taken care of before the audit is commenced, such as applying to the banks for their state- ments as of a certain date to be sent to the comptroller under personal cover and, of course, the counting of the cash on hand in the treasurer's office, as of the day of the audit, together with any securities or valuable papers which would naturally come under the jurisdiction of the treasurer's office. Inside Office Audits The formal auditing of the comptroller's office itself will be, according to usual custom, in the hands of an outside firm of accountants. When, however, the comptroller's office is large and the various functions divided among small groups of employees, it is possible to have certain portions of the work of the office audited by other members of the staff, particularly by traveling auditors. This matter will depend a great deal, of course, upon local conditions. Sometimes a supply of tickets, including revenue tickets, commutation tickets, free AUDITS 373 tickets, etc., is carried in stock by some branch of the account- ing organization. Wherever that is the case a good system of internal audit should be in effect. The order blanks on which requisitions for tickets are made out should be prepared in triplicate, the original going to the ticket printers, the dupli- cate through the comptroller's office to the branch where a record of the tickets issued and collected is kept, and the tripli- cate should be retained by the representative of the comptrol- ler's office who handles this ticket supply. A sample of order blank (Form 155), which is printed in triplicate, is given herewith. THE WESSEX COMPANY Original Order No. .191. Please print the following described Tickets, and forward with least possible delay to Traffic Agent. Tickets Form Description Commencing No. Closing No. Remarks Form 155. Requisition for Tickets (in triplicate). Size, & l / 2 X 11. Periodically the traveling auditors can check up the clerks in charge to see that all tickets which have not been invoiced to various ticket agencies for sale are duly on hand. A sample of the ticket invoice used in forwarding tickets to the selling agencies is given on Form 156, which is made up in triplicate. 374 "IXSIDE" ACCOUNTING WORK THE WESSEX COMPANY TICKET ROOM Xo. . 1 9 . To ORIGINAL Herewith find tickets invoiced below, which carefully examine, count and make sure none are missing; but under no circum- stances make any alterations hereon. Per TICKET CLERK Form Description Consecutive Numbers Inclusive Commencing Closing No. Furnished To the Comptroller, I have received, examined and counted all tickets as described above, and find them to be correct as invoiced. .19. Form 156. (a) Ticket Invoice (original). Size, 8 X 10^4. THE WESSEX COMPANY TICKET CLERK Xo. .19. To DUrLICATE Has today been supplied with tickets described below: enter same in stock records; see that receipt is promptly returned and compare same with memorandum. Receipts must be assorted in the order in which they are consecutively numbered. Per TICKET CLERK Form 156. (b) Ticket Invoice (duplicate). (Lower part of form, same as original.) AUDITS 375 THE WESSEX COMPANY COMPTROLLER No. To , TRIPLICATE .19. .Has this day been supplied with tickets described below. Please charge his account accordingly. Per TICKET CLERK Form 156. (c) Ticket Invoice (triplicate). (Lower part of form, same as original.) The requisition used by the outside office or ticket agent for a supply of tickets is made upon Form 157. THE WESSEX COMPANY REQUISITION FOR TICKETS Office TO COMPTROLLER : 191 No. of Tickets Wanted Form Description or Style Commencing Number Closing Number No. on Hand ^^-^_^->^^^_^~^_-^_^-s^^-^-^^-^---^-'>w^-^-^-^^^---^ p^ S_ ^ -w ^^ > > > ^*~ ^r > ■ . - ^ ^r - w^ -w- - - ) ■ - ^^ -^ Note: — Retain a copy of your requisition. Examine your ticket stock on the 20th of each month and order 15 days in advance of your requirements. Approve Ticket Clerk. Form 157. Outside Office Ticket Requisition. Size, 8]/ 2 X 11. A small ledger should be kept in the form of a running inventory as a record of the tickets on hand in the stock-room. 376 "INSIDE" ACCOUNTING WORK For a record of the tickets sent out, to be kept by the clerk in charge of the passenger end of the work in the comptroller's office, a card system works out most satisfactorily. A sample of such a record in convenient form is shown on Form 158. THE WESSEX COMPANY Ticket Stock Record Record of Ticket Sent to Printed by Kind of Ticket Class Value Form No. Date Rec'd On Hand Form 158. Ticket Stock Record. Size 5^4 X 4. As already stated, the internal office checks depend a great deal upon conditions in the office. If there are other supplies, or if there should be any volume of money or securities, the proper internal check should, of course, be arranged for. Where there is a treasury department all moneys or securities should be under the supervision of the treasurer. Further Auditing Devices In the preceding pages very complete detail has been given for audits in the local offices and elsewhere. It should be stated, however — a fact which is undoubtedly apparent to those experienced in street railway accounting — that not all the secrets of checking and auditing have been explained. With any large company there will be others known to the head of the department and to the traveling auditing force, which for obvious reasons cannot well be set down. Part IV — Additional Forms CHAPTER XXV FORMS AND THEIR USE The Significance of Forms As already suggested in Chapter XVI, there are other phases of the operating work of a street railway company in which the accounting department is interested but which limi- tations of space forbid describing. In order to get some idea of the methods followed, the most important forms used in these operations by the Wessex Company are given herewith. The following suggestions may be of interest with regard to the value and the significance of these forms as well as of those presented throughout the book. The object in using forms is the saving of time and labor. It is by means of them that the various activities of produc- tion, distribution, and the like are coordinated efficiently. Forms rank as the great facilitating agency in the general scheme of business organization, and hence their importance. Where many persons have to report concerning similar matters, a more satisfactory statement is obtained from each one by the use of a printed blank than by means of memo- randa, which take more time from each writer and which needlessly vary with each writer. But, besides saving time, forms when well devised contribute definitely to the efficiency of business procedure. They serve to select and to concen- trate attention upon the essentials, the strategic points of the various processes of the business. It makes a great difference, 377 378 ADDITIONAL FORMS accordingly, both to the accounting and to the operation of a street railway company whether the forms which constitute so large a part of its machinery are closely designed and worked out. Careful study of the forms used by an organi- zation tells much as to its methods and its efficiency. Emphasis Here Placed on Arrangement of Material To draw up forms so as to obtain the best results with the least effort calls for great care. A successful form is rarely extemporized ; it is almost always the result of long and care- ful experiment. Those given herewith should be of interest to all students of the industry, and to practical railroad men as well, as suggesting perhaps different methods of treatment for what are to them familiar matters. In the representation of these forms the chief considera- tion has been that of arrangement. This is a point of especial interest to students of the business, on both the accounting and operating sides. While the material to be shown on railway forms is in some cases identical for all roads, in many other cases it differs widely according to local conditions. Methods of arrangement, however, and the handling of the particular requirements of a concrete situation, are of general interest and suggestiveness to persons working on other roads. The sizes indicated in the captions are those of the actual forms represented; the width of the form is stated first and then the depth. Two Varieties of Forms The forms shown in this book, as noted in Chapter I, fall into three classes: (i) reports by subordinate employees regarding their own work; (2) summaries of the preceding reports, and records of office work, by local supervising offi- cials; and (3) authoritative digests of these and other mat- ters, made by superior officials. Those of the second and FORMS AND THEIR USE 3-9 third classes are sharply different from those of the first class. In the case of the first class, the aim is to secure an accurate and impersonal record of a few items of fact. In the case of the third class — and to a less extent of the second class — the aim is to give a compact, visual presentation of the relations and tendencies of groups or masses of items. The forms of the first class are intended to be filled out by comparatively inexpert workmen, and to present informa- tion on a few significant points for rapid checking by experts. In make-up they should be simple and brief, of convenient and economical size ; they need not be printed on especially durable paper. The forms of the second and third classes are intended to be made out by expert officials, and to be studied by persons who are on the whole unfamiliar with the facts presented. Forms of this sort should be made up on good paper, etc., to permit consultation and filing. Questions of the grouping of subject matter are most important in the case of the third class of forms, which should be as complete and compact as possible. At the same time they must be readily intelligible. In a good form, no matter how large or elaborate the subject presented, the main lines are clear and simple. CHAPTER XXVI ADDITIONAL FORMS RELATING TO PASSENGER AND EXPRESS SERVICE In addition to the forms already shown, the following are of interest. Form 159 is an application for employment, with provision for photograph of applicant; and with it is used Form 160, order to photographer. After the applicant has been employed and during his instruction period Forms 161 and 162, "Duties of Conductors and Motormen," are used. A permanent card record is kept of all conductors and motor- men on Form 163. For inspection of the work of the car crews, Forms 164 and 165 are used. With a large company the telephone is much used. Form 166 covers the telephone calls in connection with car opera- tion and Form 167 is a record of all toll calls. A daily dis- patcher's report is illustrated in Form 168; this is a most important record and should be compiled with care. 380 PASSENGER AND EXPRESS SER\ ICE 38l THE WESSEX COMPANY 191. ... APPLICATION FOR POSITION OF (Must answer questions in ink, in own handwriting.) Applicant's name in full Address (City, Street, and Number) How long have you resided there ? What is your present trade or occupation? Where were you born? When? Are you married, single or a widower? Do you use intoxicating liquors? Is your hearing good? Is your eyesight good? Have you ever worn glasses? How many dependent on you for support? By whom were you last employed? Their address ? How long were you in their employ? Why did you leave their employ? By whom employed during the last three years? Name Address From To Occupation How long have you been out of employment? Have you previously made application for position with this Company ? If so, when? Have you ever been employed in any capacity on a street rail- way ? If so, when, where, in what capacity and with what Com- pany? Have you ever been employed in any capacity on a steam rail- road ? If so, when, where, in what capacity and with what Company?.. I refer for recommendation of my character to the following persons: Name Address. Remarks: I certify that all of the above statements are true. (Signed) . ±< fGeneral appearance Complexion „£ £ c Weight Height m "So >0 Color of eyes Color of hair |f E >, « Special Remarks l>-aa.l Record Taken by Form 159. (a) Application for Position (face). Size, Sy 2 X 14. 3 82 ADDITIONAL FORMS < o u X w CO w w E H k — A — >> o o 2"! ^ c &5«*-^ i- >/o O -3 X W 3/ r-< • — j -tJ c •S'JJ.2 «^EoE> .3 o n O So *o &-3-S o p coo V CD •" >s "~ w J3 3 ~ ? c o. u >.-o C rt o be o «.a u o 3— < en •Us •§§8 =3 i- rt t/3 ►J i "> 2 ^2 Hi r-« L> ~ M-H - ,a t/1 "T h t/1 . ^ be o H CO Q <2 wji 3 be c G. g eu en O c « eu , £f S § O+l tar H : : : : : : z m : : : : : : 2 : : : : : : o : : : : : : _i o. : : : 2 : : : : : : 111 ; ; ; ; ; a : : : : : o : : : : : : u. • • • • • . 2 : : : : : : o : : : : : : h : : : : h 00 ^ w ^ re -a a „, < < Z < < Qj PASSENGER AND EXPRESS SERVICE 383 THE WESSEX COMPANY ORDER TO PHOTOGRAPHER Division .191. To. Dear Sir: Please take two photographs of the bearer one full face and one profile, upon one piece of paper and furnish us with two prints of each posi- tion, the charge of twenty-five cents thereof to be collected from the sitter in advance. Yours truly, Form 160. Order to Photographer. Size, 5J/2 X W/ 2 . 384 ADDITIONAL FORMS THE WESSEX COMPANY DIVISION NAME AGE Yrs WEIGHT Lbs. HEIGHT Ft. In. Badge No. Date Appointed Inspected by Badge Car No. No No. Days Trip: No. Date Route Ridgewood Wild wood Waverley Pleasanh aile- Above sHident^has been fully instructed in his duties and is now qualified "to begin service. Chief Conductor Approved; .Supt Date .191- Forms 161 (a) and 162 (a). Conductor's or Motorman's Instruction Card (face). Size, 4 X 8H. (The faces of these forms are ident- ical except for the signature.) PASSENGER AND EXPRESS SERVICE 385 (DOT 1 .5 *- \ H g I % ( +J \ 8 Q ) ft « \ OT J ■O -M ( fife \ - a 3 « ( O +j ) S \ fig^ ( 3s \ «!CC« / Pn s ^ J OT OT S ( H t; d ot \ •S 52 f O On c ^ ) & u a \ Q Z O O s and Transft ay Card ace to turn Day Card Names of a O CO Rule ut D d PI and and W H 8- ° C 2C m \ TO „, / Co -EX w O ™ c* \ ^a ■^ U § = £ ■O 83 fi tj •O O ai re ■a 3 & >.2 re *; re «a Q 5 : . 1 ( t **>> ■ 0) • 6 c »- re • M 2 3 2 OT 1 " 1 -f-> • a < o-- . Q. . O ° M tM ot ra O OT L. Q, C 2 z *" 1) ^ . •a ' c . H 0_. OTfl CO -w •=« re . O £a *j • nam and (Lc g Poi ofi rare ■as: Q ; c a; 01 < E 're O CO s and lidings Time Passin £ £ e : * : O ; »— 1 Eh ation its, S ning ban) ular s! O £ OlQ 2* : P « n S 3 W> °x J « Ph 5g CDT3 . C 0) . 1 «% x a> • 3 re^ Q) u • bo TO 5*« §8 : 0) re, OT+- 1 SI 1 -2°^ ■1* — 0. re-w • re !2 *' : § °& M <0 '. OT rt'^.SOTiS C8* 1 . a) 8- co^ t, 03 £♦- • — S . ~ • ~"a . "g: j : 0) 0) fi s 4-> 0) • fe j : •S : ■D 1) C owledg ions. owledg N S ra ■o c+j s: • c^ c d - a,- 3 H Sre5£ £ : u '^ 3§6 ADDITIONAL FORMS THE WESSEX COMPANY Badge No. Photograph No. I Appointed Resigned Discharged Form 163. Card List of Conductors and Motormen. Size, 8X5. Inspector Day Line Car No Badge No. . Time on Time off . THE WESSEX COMPANY From. .191. To Total Passengers Registered TRANSFERS Collected Not registered Free or Missed Describe Shortages and give Full inspection below Form 164. Inspector's Report. Size, 3J/2 X 6. PASSENGER AND EXPRESS SERVICE 387 THE WESSEX COMPANY STARTER'S REPORT DATE Car No. Cond. No. Motor. No. Time Due Time Arrived Remarks Form 165. Starter's Report. Size, 4^ X 5^. THE WESSEX COMPANY F T°o n i2 1 :00 p A M M ' Daily Office Telephone Report for. .day. .191 Time M Badge No. Run No. Car No. Due Called Up From Trouble Orders Taken By Form 166. Daily Telephone Report of Cars. Size, 9 X 11. THE WESSEX COMPANY Date 191.. Daily Record of Telephone Toll Calls at Operator on duty from M. to M Operator on duty from M. to M. Operator on duty from M. to Ml Operator on duty from M. to M. Operator on duty from M. to M. Call Called Time Personal or Company No. Party Party Place Rec'd Con. Disc. Remarks Form 167. Daily Record of Telephone Toll Calls. Size, 8V 2 X 11. 3 88 ADDITIONAL FORMS N w- o 7 O (fi > O) r > c > 1 s> \ § t IX n > o o a 3 <[ u_ 11- fc- c: 2 o 5 o CL 1 I . UJ F X ll a. (0 j / ii o: 3= >} c < c o 1 1 58 3 MM 5 \ i *— ' \ ^ 1 i— n i i l 1 ( ?\ Pi to PASSENGER AND EXPRESS SERVICE 389 As with all transportation companies, the numerous articles left in the cars by passengers are turned in at the office. No particular record is necessary, but a tag (Form 169) is at- tached to each article. In connection with the care for safety of operation, several forms are used. There is a general form for the examination of conductors (Form 170). Where this examination is to cover single track lines protected by automatic electric signals, Form 171 is used in addition. When it is to cover single track lines protected by hand-thrown signals, Form 172 is used in addition. In connection with the line repair service there are two forms (176 and 177) which aid the division manager to keep a record of the movements and work of the repair crew. THE WESSEX COMPANY LOST ARTICLE TAG Badge No Car No Run No Date Time Conductor Description of Article No. All articles found by employees on Company property or cars, to be immediately sent to the Manager's office. Form 169. Lost Article Tag. Size, 2J/2 X 4^. 39° ADDITIONAL FORMS THE WESSEX COMPANY EXAMINATION OF CONDUCTOR OR OTHER EM- PLOYEE IN CHARGE OF REAR END OF CAR ON RULES AFFECTING THE SAFETY OF OPERATION Conductor No Name Division Date Bulletin Boards How often are bulletin boards to be examined? Are the orders or instructions appearing on these bulletin boards, if in conflict with these rules, to be observed? Telephone Orders Who is to call up for telephone orders?. . . How are telephone orders to be received?. To whom are you to repeat order? When is it not necessary for your motorman to repeat or- der to the despatcher? When telephone other than that furnished by the company is used for receiving orders and it is not convenient for your motorman to accompany you to such telephone, how is the order to be recorded? Are you in such instances to read order back to the despatcher before leaving the telephone ? Cars on Single Track Lines Whom does the word "crew" include as used in Rule No. 12, Cars on Single Track Lines ? Do you understand that you are held equally responsible with your motorman for running switches? Would you, without orders from despatcher or starter, leave a fixed meeting point where you are due to pass a car, if that car had not arrived? How are arrangements for passing or meeting on single track lines to be made ? What is your motorman required to do upon meeting the car you are scheduled to pass before running off turnout or double track onto single track? , : What are you required to do? When your motorman desires to follow a car onto single track and has notified you, whom must you notify? How far may you agree to carry green flag or green light for a car following ? PASSENGER AND EXPRESS SERVICE Conductor's Examination on General Rules — page 2 If your car is the first car carrying green flag or green light what must you do upon leaving each piece of single track and meeting a car that is to run onto the single track you just left? If your car is the first of two or more cars running together or your car is not followed by another car, and your mo- torman passed a car carrying green flag or green light, would you call his attention to same? If you have been told by the conductor of a car running in the opposite direction that there are cars following, what must you do before running onto single track? If your car is the first of two or more cars running together or your car is not followed by another car, and you have passed a car carrying green flag or green light what must you do before running onto single track? If you are the conductor or other employee in charge of rear end of other than a regular passenger car and your motorman has not advised you that he has arranged with the motorman of the car ahead to carry flag for him, what must you do before running onto single track? What course is to be taken in case of doubt and despatcher or starter cannot be reached for instructions? Red Tail Lamps Who is required to see that red tail lamp is on car? Between what hours is the red tail lamp to be displayed?... Who is required to see that red tail lamp is lighted and kept lighted? Precautionary Flags and Lights If red flag or red light is placed on track and party placing same does not take in such flag or light within five min- utes after your arrival, what must you do? When Accidents Occur In case of accident involving personal injury or serious damage to property, also in case of blockades, to whom must you telephone for orders? What are you required to do in case your car is derailed so that there is liability of a collision? Railroad Crossings How are cars to be flagged over steam railroad crossings? 391 3 Q2 ADDITIONAL FORMS Conductor's Examination on General Rules — page 3 If car is stalled on steam railroad crossing what must you do? Where are red lanterns and red flags to be found at steam railroad crossings ? Switches Should a switch to a side track be left open? Disabled Motorman If your motorman were disabled, describe how you would stop the car (1) If you could reach the front platform? (2) If you could not reach the front platform?.. .. Draw-Bridges Is your motorman required to stop before passing over draw-span of a draw-bridge? Are you required to see that draw-span is closed before giving your motorman bell to proceed? Freight and Work Trains Are cars hauling heavily loaded trailers allowed to precede passenger cars up grades ? Miscellaneous What must you do when you discover (a) Dangerous track or other conditions? (b) Broken trolley wire? Is trolley pole to be pulled down after dark at terminals while passengers are leaving car or before the trolley pole on the other end of car is placed on the wire? No Examined by Employee sign his name here (Examiner sign his name and state his title) Date of Examination Form 170. Examination of Conductors on Safety Rules- General. PASSENGER AND EXPRESS SERVICE 393 THE WESSEX COMPANY EXAMINATION OF CONDUCTOR OR OTHER EM- PLOYEE IN CHARGE OF REAR END OF CAR ON RULES AFFECTING THE SAFETY OF OPERATION ON SINGLE TRACK LINES PROTECTED BY AUTOMATIC ELECTRIC SIGNALS What is" a Neutral signal ? What is a Permissive signal? What is a Danger signal? If you arrive at a signal and it is at Neutral position, what must your motorman do before passing under overhead contactor ? What must you do before signaling your motorman to pro- ceed? When your car passes' under overhead signal contactor, how must the signals change to permit you to proceed? If your' car arrives at a signal which is at "Danger" what If "you arrived a' signal' that' is at 'the Permissive position and the car ahead is carrying green flag or green light tor you, may you proceed? If so what' must your motorman do before proceeding? What must you do? pon passing und which is at the . change to allow you to proceed? Upon "passing" under" overhead' signal contactor of signal which is at the permissive position, how must signal Are 'you required to observe the operation of signals upon passing under overhead signal contactor? ....... Would you pass under an overhead signal contactor a second time without orders from despatcher or starter.-' Whe'n*are"you'permi'tted to puli down trolley pole in pass- ing under signal contactor? Do' you 'understand 'tliat 'you 'are' held equally responsible with your motorman for the correct operation oi these signals ? 3 q 4 ADDITIONAL FORMS Conductor's Examination — Automatic Signals — page 2 When your motorman desires to follow a car onto single track and has notified you, whom must you notify? How far may you agree to carry green flag or green light for car following? When you have been notified by the conductor or other employee in charge of the rear end of another car that such car intends to follow you onto single track, what must you do upon leaving each piece of single track and meeting a car that is to run onto the single track you just left? If your car is the first of two or more cars running together or your car is not followed by another car and your motorman passed a car carrying green flag or green light, would you call his attention to same? If you have been told by conductor or other employee in charge of the rear end of a car running in the opposite direction, that there are cars following, what must you do before running onto single track? If your car is the first of two or more cars running to- gether or your car is not followed by another car, and you pass a car carrying green flag or green light what must you do before running onto single track? If you are the conductor or other employee in charge of the rear end of other than a regular passenger car and your motorman has not advised you that he has arranged with the motorman of the car ahead to carry flag for him, what must you do before running onto single track? What course is to be taken in case of doubt and despatcher or starter cannot be reached for instructions? .No. Employee sign his name here. Examined by (Examiner sign here and state title) Date of Examination , Form 171. Examination of Conductors on Safety Rules — Auto- matic Signals. PASSENGER AND EXPRESS SERVICE 395 THE WESSEX COMPANY EXAMINATION OF CONDUCTOR OR OTHER EM- PLOYEE IN CHARGE OF REAR END OF CAR ON RULES AFFECTING THE SAFETY OF OPERATION ON SINGLE TRACK LINES PROTECTED BY HAND THROWN SIGNALS On turnouts of less than five hundred feet in length, where are both signal boxes located? As car arrives on turnout what section of single track does the box facing the motorman protect? Where are signal boxes located on turnouts of more than 500 feet in length ? If signal light protecting block ahead is lighted what must your motorman do — 1st — If car ahead is not carrying a green flag or green light for you ? 2nd — If the car ahead is carrying a green flag or green light for you? If you arrive at a signal box and the signal is not lighted or signal goes out while waiting at the box, are you to accompany your motorman to the signal box and observe his operation of the same ? If so, what are you required to do before motorman inserts key in the signal box? Is the motorman to turn the key more than once ? If signal does not operate properly the first time the key is turned what must you do ? Whom does the word "crew" as used in these rules include? If you desire to follow another car onto single track pro- tected by signals must you and your motorman ask the crew of car you desire to follow to carry green flag or green light for you ? If you are the conductor or other employee in charge of the rear end of the first of two or more cars running to- gether, what must you do upon leaving single track and meeting car which is to run onto the single track you have just left? 396 ADDITIONAL FORMS Conductor's Examination — Hand Thrown Signals — page 2 If you are the conductor or other employee in charge of the rear end of any one of two or more cars running to- gether, are you required to see that the light protecting the single track which you desire to run onto is lighted? If your car is the first of two or more cars running to- gether or your car is not followed by another car, what must your motorman do upon meeting the first car carry- ing green flag or green light? If you are told by the conductor or other employee in charge of the rear end of car running in the opposite direction that there are cars following what must you do before going onto single track? If your car is the first of two or more cars running to-, gether or your car is not followed by another car, and you pass a car carrying green flag or green light, what must you do before running onto single track? If a signal is found set against your car and the expected car does not appear promptly and orders cannot be ob- tained from despatcher or starter what are you to do?.... If signals are out of order or do not light upon the first operation of the key, and no orders can be obtained from despatcher or starter, what are you to do? Are crews permitted to exchange or hold signal lights at turnouts or terminals? Do you understand that you are held equally responsible with your motorman for proper operation of these sig- nals ? No. Examined by Employee sign his name here (Examiner sign here and state his title) Date of Examination Form 172. Examination of Conductors on Safety Rules — Hand Thrown Signals. PASSENGER AND EXPRESS SERVICE 397 THE WESSEX COMPANY EMERGENCY STATION REPORT Date CALLS Time Place Trouble Found Left Station Back at Station ^-^^^^^---^_^-^^V_^_ v _^-^N__ i ^-^_V_^^__^V---^^-X_^-V_---^^-«' On Duty Remarks (In Charge) Form 173. Emergency Station Report. Size, 6 l / 2 X g l / 2 . THE WESSEX COMPANY LINE DEPARTMENT Form 174. Report of Line Superintendent. Size, 7 l /i X 13. CHAPTER XXVII ADDITIONAL FORMS RELATING TO MAINTE- NANCE AND EQUIPMENT SHOP AND CAR HOUSE FORMS Three forms relating to fire inspection are given here — Form 175, fire inspection report; Form 176, sprinkler report; and a tag (Form 177) for test of fire extinguishers. The division manager, in connection with the chief engi- neer of power and equipment, has jurisdiction over the work of repairing cars, records of which are kept sometimes by the master mechanics and sometimes by the barn foremen on the forms shown below. A descriptive record of each car is kept on Form 178. For the car inspections referred to in Chapter XXIII, Forms 179 and 180 are used. Forms used by conductors and motormen and by barn inspectors in reporting trouble are 181 and 182. When a car is run into the barn for repairs, that fact and the subsequent return of the car to service is shown on Form 183. For de- fective armatures a tag (Form 184) is used. When the arma- ture is ready for service another tag (Form 185) of different color, is attached. A permanent record of armature repairs is kept on Form 186. A daily report of cars removed from service on account of repairs is made out for the division manager by the master mechanic on Form 187. A monthly summary of these reports for each division is kept on Form 188. 398 SHOP AND CAR HOUSE 399 THE WESSEX COMPANY INSPECTION REPORT General Fire Protection Building 191. Location Inspected by (Title) FIRE PAILS Number In place Full STAND PIPES Water on stand pipes Equipment for same in good condition CHEMICAL EXTINGUISHERS Note — These should be recharged at least once a year. Number in place Date tested and charged FIRE DOORS Closed and fastened nights, Sundays and holidays and all times when not in use Will all fire doors close easily Will automatic doors close when weight is released Note any fire doors in need of repairs Automatic attachments in order SHUTTERS AND WIRED GLASS WINDOWS Closed and fastened nights, Sundays and holidays and all times when not in use Will all shutters or windows close easily Note any shutters or windows in need of repairs HYDRANT AND HYDRANT HOUSES Note — Each hydrant should be given a thorough test by flushing at least twice a year, spring and fall. One turn to open should be sufficient at other inspections. Hydrants open easily Free from snow and ice and easily accessible Hose, Play Pipes, Spanners, Hydrants, Wrenches, Rubber Washers, Axes, Lanterns, Nozzle Holders In their proper place and ready for use Condition Note — Each hose house or stand pipe can be numbered and re- ported upon separately. ELEVATOR AND STAiR DOORS OR TRAPS In order and kept closed when not in use Note any exceptions Condition of latches or other hardware CLEANLINESS Oily waste well cared for Basement clean Yard kept free from combustible material Belt enclosure clean Clothes closets and water closets clean Shafting and bearings well cared for Clean under benches Note any suggestions as to possible improvements in cleanliness Remarks and suggestions. Fire alarm Boxes Keys in proper place Signs giving location in proper place Watchman's clock Stations in good order Form 175. Fire Inspection Report. Size, 8^2 X 11. 400 ADDITIONAL FORMS .191.. THE WESSEX COMPANY INSPECTION REPORT Sprinkler Systems Building Location Inspected by (Title) VALVES (Inside Gates) Note — All gate valves to be secured open with leather straps fastened with padlocks riveted or sealed and keys to be held by responsible parties. Each valve to be inspected by turning' valve one turn to insure its being wide open and in good working order. Drip valves to be strapped closed in a similar manner. Note — Valves under approved supervisory system need not be secured. List of Valves Location Open Yes. Xo 1. 2. 3. 4, &c. VALVES (Outside Post Indicator Gates and Valves in Pits) Note — To be secured and inspected in the same way as inside valves. List of Valves Location Open Strapped Yes. No. Yes. No. 1. 2. 3. 4, &c. Give numbers of any of the above valves found closed, part closed, not strapped, closed temporarily at any time since last in- spection. Explanation Strapped Yes. No. Note — Drip valves to be tested weekly. DRY SYSTEMS (Air Valves) Note — Dry valves should be tested for water column and condition of spring at least every three months. Should be tripped at least once a year. Note — When system is first set, test for water column every few days. List of Valves Location Air Pressure 1. 2. 3. 4, &c. Dry valve closet in good order and properly heated Give number of any air system into which water has entered during week Explanation Are hand hole plugs in place. Is flanged dummy in place... ALARM CONNECTIONS Note — All controlling valves or cocks for alarm devices to be sealed or strapped open. Special instructions to be given regarding testing alarm valves. VALVE CONTROLLING ALARM List of Valves Location Open Yes. No 1. 2. 3. 4, &c. Give numbers of any alarm devices out of service Explanation Strapped Tested In Order Yes. No. Yes. No. Yes. No Form 176. (a) Sprinkler Report (face). Size, 8 l / 2 X 11. SHOP AND CAR HOUSE 401 GRAVITY TANK . Full Contents Frozen Tell-Tale in Order Condition of tank, hoops and supports Remedied When PRESSURE TANK Water Level Air Pressure Note — Gauge glass cocks to be kept closed except while inspect- ing. STEAM PUMP Xote — Pumps should be given a thorough test with rated number of hose streams at least twice a year, spring and fall. They should be started once a week, and water discharged through relief valve or otherwise to make certain pump is in order. Valves in steam connection from boiler to pump wide open Minimum steam pressure for pump during week Started Tested through hose streams. Condition Supply of oil on hand AUTOMATIC REGULATORS Regulator controlling valves wide open water pressure maintained Pump started and regulator operated at pounds. ELECTRIC PUMP Xote — Pumps should be given a thorough test with rated number of hose streams at least twice a year, spring and fall. They should be started once a week and water discharged through relief valve or otherwise to make certain pump is in order. Any interruption of current supply Condition of contact points on all switches Started Tested through hose streams Condition Automatic controller in order Water pressure maintained Supply of oil on hand ROTARY PUMP Note — Pumps should be given a thorough test with rated number of hose streams at least twice a year, spring and fall. They should be started once a week and water discharged through relief valve or otherwise to make certain pump is in order. Started Tested through hose streams Condition Supply of oil on hand AUTOMATIC SPRINKLERS Steamer connection in place ready for service. Any corroded, bent, whitewashed, gilded or painted, covered with dirt or grease, distribution of water from sprinklers obstructed Is there a clear space of at least two feet below the ceiling or roof, free from storage or other obstruction. Note any ex- ceptions Any operated since last inspection Any additions needing 'sprinklers Any extra heads Form 176. (b) Sprinkler Report (reverse). 402 ADDITIONAL FORMS e 13 o c~ a Cs en ™ i-< > 13 o Q C fc u V > .a c 13 o c _ rt ^ en > 13 o Q C fe u V Efl c *°T3 •2 ■** be *a to be C j^ *-• re ■^ rt U5 »C u O rt 13 C < Oh o o x w CO H W E H u 3 bfl C "■*■» PE, JO o a t> u 13 C re w ■d c re fc fe SHOP AND CAR HOUSE 403 Line. THE WESSEX COMPANY Car No. CAR BODY Type of Car... Builder When built of parcel Number racks Number of seats. Seating capacity . Make of seat Tread of wheel. . Height of flange. , Length of axle over all Diam. of Axle Form 178. (a) Card Record of Cars (face). Size, 8X5. MOTOR Make Type H. P. ELECTRICAL EQUIPMENTS System of control.. Type of controllers. . Number per car ] Type of contactor, No. of teeth on pinion No. of teeth on gear. Type of reverse switch Style of heaters.... Weight of elect. equip, complete...., REGISTERS Type of register. Type of register fixtures Arrangement on I Diam. of trolley I Cost of trucks trucks wheel Cost of Miscl. equip. Scrapers I No. of lamps in car. | Total cost Total weight of motor complete with gear and gear case Remarks Form 178. (b) Card Record of Cars (reverse). Size, 8X5. 404 ADDITIONAL FORMS THE WESSEX COMPANY REPORT OF INSPECTION OF CAR Date cf Report Time Date of Inspection Time Place of Inspection f Open Number of Car "^ Closed Single or double truck Hand or air Brake Condition of air brake Condition of hand brake Remarks: Form 179. Report of Car Inspection. Size, % l / 2 X 14. SHOP AND CAR HOUSE 405 CC to o.S o g 2pq c3 to 0> 3 rj 3 3 , >"' •«-> +■> a> o c • 2 a) 0) . C3~* t« — S 3oii« mpgo {3 22 o o o o g 1 Co 00 S' 1 0) ■ o Sag x n w +J m 0! "EnJH fc a>r3 b bt=3 Og 8 BO S cd to rO "? =« ? ^0 H . A< : W • K : 2 : W Ah : to : 2 : 1— 1 . % : co fcyg 3'E :^2 0> C cd 5 3 S CO c C rf ' d bo 03^ £3h cd a) 03 .So «?« 3.2 & tmg5o5t;5ph£c80o a ■ 4> •*sa *- c « O ra 4) <0 4> a a> co. ia CO) c w£ .- re — ^o^ ^re=- o ^^l 5 - ■° F-oo — U. "£ iJ — 4-» _ -*-» x ex re ,--° w 0) c -o — o— S- »- O.Q jo "5 0)_ r- re c CO ^ o *• 4)"" « E re O X 00 y O p -t Ih M - N t/J *^ cv £< u -3 psi 406 ADDITIONAL FORMS THE WESSEX COMPANY DEFECT CARD Apparatus Indicated by X is defective 1 Trolley pole 1 Whistle " wheel Foot gong " harp Conductor spring Bell cord base Register rope " rod " catcher " cord Controller Car door glass Motor supports | Platform chain Gear Running board " case " " hook Flat wheel Draw bar Hot journal Illuminated sign Journal box cover Dirty car Dust collar Car O. K. Multiple unit Remarks: Reported A. M. P. M. Form 181. Defect Card. Size, 3 J / 2 X 18. SHOP AND CAR HOUSE 40 ~ THE WESSEX COMPANY Date 191 Time Reported M. FLAT WHEEL on Car No Run No Slight .or Bad (state which) Conductor Badge No Motorman Badge No Took Car at Time M Starter From «J Conductor Badge No Motorman Badge No Form 182. Report of Flat Wheel. Size, 6 X 4^. THE WESSEX COMPANY CAR REPLACEMENT REPORT Division Date . Car No was taken off line at M., and replaced by Car No at M. Motorman No Trouble was reported by Trouble found and repairs made as below: Repaired and reported to Car Barn Foreman as ready for service at M. Barn by Signed Foreman Form 183. Car Replacement Report. Size, s l A x ^> l A- 408 ADDITIONAL FORMS THE WESSEX COMPANY Attach this Tag to Fields and Armatures re- turned to Winding Department. CAUTION. Do not allow wire ends of this armature to touch on corners or floor or tools. Forwarded from Date Removed 191 Removed from Car No. Removed from Motor No. Part Type Number Condition Received above part in condition stated. Foreman Remarks • Form 184. Defective Armature Tag. Size, 3X6. THE WESSEX Attach this Tag to Fields livered Ready for Serv Department. COMPANY and Armatures De- ice. From Winding CAUTION. Do not allow ends of this armature to wire touch on corners or floor or tools. Armature No. Date Repairs Completed 191 Winding Repai red by * Commutator Shaft Bearings & Pinion Placed in Car No. Date Installed 191 Installed by Remarks Pitman Approved Foreman. Form 185. Armature Tag. Size, 3X6, SHOP AND CAR HOUSE 409 RECORD OF THE WESSEX COMPANY APMAT1IDF MO CAR H0U5E RBdb pin in SERVO CAR NO nan CAUSE Of REMOVAL in by REMARKS COILS COMMUTATOR SHAfT PINION MISCELLANEOUS M u IB Hi' WO M M *9 Cut HO Li laa via B.a »!•.] [■>■ 8 ."4 1 — L ^_ ^^ r— — r— -1 Form 186. Armature Repair Record. Size, 8X5. CarBarn foreman Supt. Every car that Is taken off a run fcr a reported trouble or inspection must be column and opposite car number Dot inside of a circle indicates a removal due Sidered a mechanical or electrical failure or defect. These reports shal I be made cut daily in duplicate by the Car Bam Foreman, iccr Superintendent, who will retain copy, sending the original to the Division 1 v APPROVED ! noti Manager •ji on this report by a dot In proper aerating condition and 15 not con- will send both to ttie Master Mectwv ager Form 187. Daily Report of Cars Removed from Service. Size, \oV 2 X 8y 2 . 4io ADDITIONAL FORMS THE WESSEX COMPANY ^iiMMADVnFrap^DFMnvFnRjnMSFDvirF month of ,oi revision rAcwm isf Cause of Removal Failure Not 3 Cause of Removal Failure Ncta ?efc-t Cause of Removal Failure Not a jrOefct Defect BODY AND MECH. EQUIP 1 Damaged 23 Heaters or H. Switch 44 Shoe Defects Z Body Defective 24 Misc. Switches 45 Snoehead Defects 3 Register 25 Lights Out 46 Brake Rods 4 Broken TidleycrReg.Cord 26 Power Wiring 47 Turnbuckles 5 Gong Z7PB.5iqnals 48 Slack Adjuster 6 Sand Out 28 Light. Heat, Air. Wirinq 49 Miscellaneous 7 Sand Clogged 29 Miscellaneous BRAKES B SB. Failure MOTORS 50 Brakes Fbor-Hand 9 Catcher or Retriever 30 hot Bearings 51 » •• -Air 10 Scrapers 31 Lead Wires 52 Ccnp Mcch Trouble ' 1 Broken Glass 32 Flashing 53Comp Arm or Field ELEC. EQUIP. BOW 36 Fin or Gear 57 Engineer's Valve 15 Trolley Wheel or fork 37 Gear Case 58 Pipe -Leak or Break 16 Trolley Fble or Stand 38 Broken Bolts 59 Miscellaneous 17 Circuit Breaker 39 Miscellaneous J8 Controller TRUCKS 19 Resistance 40 Hot Bearmq 20 M . U . Cont or Reverse 41 Frame Defects / No Trouble Found 21 M.U. Miscellaneous 42 Wheel Defects - Repairs or Inspection :: Headlight 43 Axle Defects X Misc. Trouble Note- X Includes Miscellaneous Removals not due toMech or F>c Failures or Defects 3nd not otherwise noted. Comparing Month of B witfiMonttlof 19 and with Month of 19 No "/oof A No. %ofA No %o c A Total CarMileaqe Total Cars Removed from Service A " " " per IDOO Miles T otal Defects " •• per ipoo Miles B Total Net Defects Total No Trouble found Total Repair or Inspection CLASSIFICATION OF DEFECTS No. %ofB No. %ofB No. %ofB Body and Mechanical Equipment Electrical Equipment-Body Motors Trucks Brakes ._...,. Form 188. Monthly Summary of Cars Removed from Service. Size, Sy 2 X io l / 2 . POWER AND EQUIPMENT 4 H ENGINEERING FORMS— POWER AND EQUIPMENT Some of the forms used in connection with the power stations have been given already in the chapters on "Pay- Rolls" and on "Other Departments." The following are also of interest. There is a daily "log" report from the station engineer on Form 189, and if there are sub-stations there will be a similar report or daily log sheet on Form 190. At the end of the month, summaries of these reports are sent in to the main office on Form 191 for the power stations and Form 192 for the substations. It is very important to know that material purchased is up to the standard and fit for the use for which it was bought. A record for tests of material is kept on a test card (Form 193), which is made up in triplicate. The original remains in the file at all times ; the duplicate and triplicate are forwarded first to the person who is to conduct the test; the duplicate is then returned to the chief engineer of power and equipment as soon as the test is started, and after the test is finished a triplicate is filled out with the information called for and also returned to the chief engineer of power and equipment. 412 ADDITIONAL FORMS 1 9 V. s -£j^*. IflP ?^^£ -tiffs §5-81 & e - 1 c t 6 OMPANY )WER STATION Operating Report for ttety Ending Midnight - (J < u. z < 5 8 a s JC £ E i- < C c i 1 c i. J S t l X 5 1 £ :£ _ Li -: ?, 3 S | I ■o > E 3 | :- o 5* iii O 1 $ s 1 J 1 o3 51 1 UJ z C <0 o § z o 1 < o L s. 1 ' o < 2U,o in z b < 0! I- •io i tn ff) o -J < cr UJ Z UJ O 1 f- £< B a s- «3 s 5" j9<&o -i ro ! a t _2 C C a o 2<°Q u<- X UJ if) if) UJ UJ i: H »u fc o l<'o K J 2&£ u- a a 13 a Of 5 1 UJ a 2 > Kl J 3^ t 3 u ;-; a •:• \ X i< 5 d > J h z r- uu 1 > 1 3 5 • i c | j t — 3 ^ i^l 19 UJ 5 ; j Si m ^^ r* 1 j2 - 1 1 JZ *J5 S|.s 9-S-- S t: | £ M UJ _1 a a 3 fa t: c 5 c Jf I 2 5 I"- 3 B i S T7 3 ft a re X C c s E ro c c 2 g n fi c -8'5 / 1 a 1 u s a 3 2 -} 5 s 1- 88 s a: 5 = 3 -J < IU o < 1 1 1 •- s r 3 G J | \ POWER AND EQUIPMENT 413 414 ADDITIONAL FORMS O 4> a Q 111 u 3 H 3 a ^H . ? O CO . z 0) a '3> - c • O : o a \tO ~ s ) . 5 111 •I. « ) z 1 ■- < > 0. 1 fe c o III S3 c/5 X > ^H ■ rr B!W- CO - \ c c fc? Z c < : 111 o w DC (0 111 J o o UJ i H O 3 ■■J Z bo \ onth lonth onth ?r d Mach'y Log or minus K.W.H. 3 c O a C/3 £ 11 Q. 4 On hand first of M Received During A Total On hand End of M To be Accounted.f Sold or Transferre Used for Boilers — Used as per Daily Discrepancy, plus Gals. Oil per 1000 z pq s. : /. 3 I 2 Boiler Compound Grease Gasoline Kerosene Waste— White " Colored w rt f w B #£ !!!S >- , E < «H M ) ^ ) UJ \ w S ( [l o \ c RFORMANCE ed figures ma ted K.W.D pere Reading Net K.W.H. " Pound C nd Maint. t K.W.H. M. & ctor [Monthly; harged ig Coal " per To 0. c( OJ ft o >) z 5 o.ssA PE Note — Estimat tal D. C. Genera ' A. C. * Power " ed in Station t Output lx. D. C. Hour AC " Total " lx. observed Am unds Fuel per " Water " bor Cost Oper. a ' Mills per Ne tation Load Fa ns of Coal Disc st of Dischargi of 5^\ c( c J - . w«to --So d" Moo- Eh P£S Sfc iJ fid W\ ool "J H } C r-»| r " 1 4- 1 UJ ) *- ■* .r T ~ ) O CO \ *" 9 < ) Ml ) , " 1 Tf ) U. D o \ O I / ) o ) DC \ HI _l •1 CO CJ \ o u O DO 00 Z n o } < 6 < ) 1 CO DC UJ CO d z \ | -1 Tt\ Lil — \ \> ;o ( s. \o- /a \< CO h o Q ^.1 CVJ| > J \ i, 03 o Z } Z 1 V. l«l ( V §s3 '>- 1--0.2 ■d/ ) P* -2>£ c 4) ) V VS •c's>. net / 1 to . S ° V cu to- 2^ s ( 1)/ 3 k nj tD<— t £: *** \ |P o o o n.\ 'Hi ChP-H f ^ « rf tn w o S o P4 o o to POWER AND EQUIPMENT 415 :o+ 6 Z V) * DC :SS z < ? • V z CO CI C T3 - Ul DC 6 z re (0 2 C " CD- 0) DC Ul C f \ • (0 • 0> z I) Ltlh 2 IU j2 aj V • Ul V 1 CO ( • 01 • c 10 3 to «s — \ • re • 4> • DC 5! 00 fci O O rtto « z_ i< 6 \ Z ( tH t- *-> s S ~E kJPOW <-»fn \ OMPANY SUBSTATION ort for Month Machine Mete CQJ -d & ) A .5. re t, « 1 HOBU V S •aJ.g,?: ) .Sso^ \ 'G re '£ x re \ re oij w o : ( 42 to. re» » .a* S u £<-> (D-c _oa >-. m- too) F, c c - o a, ojhpre c£.5c 5 i> £«' to.c'c: S3 • •h-l O - • Q. • r-, ' O O; = ■ o h 5 fen Pw is 1 . .re o 'PPWEh (SS CO 0>-M EO O i • a- 3 P 02 « 5 o" toS- g 0. . 0. J^. «j* * P ai . : *. AH cvi c O c G, OJ 0) K •0 >. p J5 C O VrH K e3 > oi C\ M l-t "O fl re P 416 ADDITIONAL FORMS THE WESSEX COMPANY Original Special Test No Date Authorized File No Division Car No, Station Article Mfg. Date Started Location Car Miles K. W. H. Test under Supervision of REMARKS: (Duplicate) Chemical or Other Analysis REMARKS: NOTE: Under this heading describe fully any special con- ditions which may affect results of test. REMARKS: (Triplicate) NOTE: Under this heading describe fully any changes or va- riations noted in test conditions of article under test during entire period of test. Form 193. (a) Test Card (face). Size, 6X4. (Upper part of duplicate and triplicate includes the seven lines shown in original.) POWER AND EQUIPMENT 417 Checked By Approved By C. E. of P. & E. This Card must not be taken from File, but kept as permanent record containing complete dat a of test, cheeked by official rec~ oramending test and approved by C. Eng. of P. & E. This Card with its Triplicate, to be sent to person authorized to make the test, must be filled out when test is started and returned at once to office of C. Engr. of Power and Equipment. Test started as noted above. Title. Date. This Card with its Duplicate, to be sent to person authorized to make the test, will be held by this person until test is com- plete, then filled out with data called for and returned at once to office of C. Engr. of Power and Equip. Test completed as noted. Title. Date. Form 193. (b) Test Card (reverse). 4I g ADDITIONAL FORMS ENGINEERING FORMS— MAINTENANCE OF WAY Of the numerous records kept by this office, some have been explained already in Chapter XV, "Additions and Bet- terments." A few others of interest are Form 194, daily re- port of rail and joint grinding; Form 195, daily report of work on track; Form 196, daily report of track laid; and Form 197, certificate of ties purchased. DAY Date NIGHT THE WESSEX COMPANY ROADWAY DEPT. Daily Report of Rail and Joint Grinding Division Street Bound Track RAIL From To Give exact location: House No: Trolley pole or other mark Lin. ft. of rail ground including joints No. j oints ground No. bricks used up No. of men Machine No Notes . Foreman Form 194. Daily Report of Rail and Joint Grinding. Size, 8V 2 X 5 y 2 . MAINTENANCE OF WAY 419 THE WESSEX COMPANY DIVISION Roadway Department. Report of Work Done During 24 Hours Ending 7 P. M 191 Foreman No. Men Location Nature of Work i ' ^ " ^ ^^-N^^-X^~"\ 1 1 Were there any accidents, derailments, delays to service If so, report same on other side of this sheet. f^o-n^rn Form 195. Daily Report of Work on Track. Size, II X 8J^. THE WESSEX COMPANY Date. No. of Men. . . No. of Teams. Street TRACK LAID East Bound. . .West Bound. .North Bound. .South Bound. Special Work Repairs Material Used No. of Feet Foreman Form 196. Report oi Track Laid. Size, zYz X 6 T / 2 . 420 ADDITIONAL FORMS THE WESSEX COMPANY PURCHASING DEPARTMENT Certificate of Ties Accepted From No File N< Full Name* .of P. O. Address .First Class at. .Second .Third Rejected Inspected 191. Delivered at Division .Tie Inspector c Form 197. Certificate of Ties Accepted. Size, 8 1 /- X 3^. CHAPTER XXVIII ADDITIONAL FORMS RELATING TO STORES AND ACCIDENT CLAIMS STORES FORMS Some additional forms used in connection with the stores department may be mentioned here. After material has been ordered by the purchasing agent, if it should be necessary to send a letter to hurry the shipment, Form 198 is used. When shipments are received "short," Form 199 is used. Form 200 is used for requests to the stores keeper to replenish his stock. In transferring material from one place to another, Form 201 is used. In connection with the sale of old material as de- scribed on page 275, et seq., Form 202 is used, and for the bin card referred to on page 369, Form 203 is used. 421 422 ADDITIONAL FORMS THE WESSEX COMPANY OFFICE OF STORES KEEPER .191.... Mr. Please advise by return mail, using space provided below, when the following material will be shipped: Order No. Requisition No. Quantity I Description of Material ! • Stores Keeper. REPLY Form 198. Request to Rush Material. Size, 8 l / 2 X 11. THE WESSEX COMPANY DAILY SHORT LIST Division Date 191.. Description Req. Date Order Date Hurried Remarks. Form 199. Daily "Short" Report. Size, 8^2 X 11. STORES 423 4^4 ADDITIONAL FORMS THE WESSEX COMPANY Date To the Genera! Stores Keeper Please ship the following supplies to At Class of Material Put Only One Class of Mater al on One Sheet Quantity Catalogue No or Size ' Description SHIPPED Date How Remarks General Stores Keeper Stores Keeper Form 201. Request to General Stores Keeper to Ship Supplies. Size, 8y 2 X ii. THE WESSEX COMPANY .191. General Stores Keeper Dear Sir: We have shipped on account of material sales order No on from (Insert Date of Shipment.) (Insert Point of Shipment.) Consigned to At the following cars, namely; (Insert Destination of Shipment.) Cars-Initial and No. Gross Tare Net Material I enclose bill of lading, sworn certificate of weight, and bill for value of material amounting to $ Tours truly P.S. — This shipment completes the above order. Form 202. Division Stores Keeper's Report of Materials Shipped. Size, 8 X ioj^. ACCIDENT CLAIMS 4»5 THE WESSEX COMPANY NAME OF ARTICLE Item No. DESCRIPTION Received On "Hand Received Date Amcjr-: Date Amount On Hand Form 203. Bin Card Size - { < & (.Ruled on both s LEGAL DEPARTMENT FORMS— ACCIDENT CLAIMS For the work of this department, already noticed in Chap- ter XVI, it is extremely important to keep accurate and full records of accidents. The following forms have been devised. The first report of an accident is made by the car crew on Form 204. The division manager then fills out Form 2 5 and the general manager prepares a daily report for the whole system on Form 206. For the statements of witnesses obtained by the claim agent. Forms 207 and 208 are used, with Form 200, a card for the witness' address. Resides the monthly summary of accidents already shown in Chapter NNI. there is a monthly report of claims. Form 2IO, Permanent records are kept on Forms 211 and 212, 426 ADDITIONAL FORMS THE WESSEX COMPANY ACCIDENT REPORT (This report must be filled out in ink) INSTRUCTIONS: In case of accident, however slight, in connection with, or near your car, to persons or property, you will at once render all necessary assistance, and at once obtain the names and residences of the per- sons injured and of the WITNESSES ON OR NEAR THE CAR. (This duty is most important and should un- der no circumstances be neglected.) As soon as possible thereafter make a written report on this blank, entering in the proper place the facts called for. The conductor and motorman should fill out and sign separate reports. All witnesses' names should be added and the report de- livered to the General Office of the Company as soon as possible. Give no account of an accident to any person except to an official of the Company^ To Superintendent. Place Conductor No.... Motorman No.... Run No Car No Time......M. Date 19.. Number of passengers on car at time Was injured person passenger, employee, or traveler on highway? Names and residences of persons injured, and kind of prop- erty injured (including injury to car, if any) General nature of accident and injury. Where or in whose charge was injured person or property left? Place of accident. (State exactly) Direction car going Was gong sounded? Direction person or team going Were brakes, gong, fender and headlight in good order? If not in good order, state what was defective and in what particular Was fender dropped? Speed of car before accident, whether fast, moderate or slow Was injured person at fault? Why? Headlight, Arc or Incandescent Lighted or Out WITNESSES. (On or near car) Name, Residence, Street and Number Signature . . Occupation No Form 204 (a). Accident Report by Car Crew (face). 8 x 14. Size. ACCIDENT CLAIMS 427 >* *H • & H • • < tf On O Oh w u « X ca W w Q £ 1— 1 < H 4) 1 5 E c « nt 2 Q 1 Z Form 204 (b). Accident Report by Car Crew (reverse). Size, 8 X 14. THE WESSEX COMPANY Division ACCIDENT REPORT Date of Accident 191 Place City or town.. Nature of accident *. .191.... . .Time Names and occupations of employees concerned:* Names of passengers, employees, and others injured or killed (Designate employees by stating their occupation.) Damage to property , Cause of accident and circumstances attending same. Manager or Supt. *This is to cover names of crew in charge of car, of track- men, linemen, power station men, or other employees of the Company, engaged in the operation Form 205 Alanager's Report of Accident. Size, 8 X 10. 428 ADDITIONAL FORMS THE WESSEX COMPANY DAILY ACCIDENT REPORT .191, File No. of Accident Time and Place Car Name of No. Person Injured Age Nature of Accident Details General Manager This report to be sent to Vice-President's office daily. If no accident occurs "BLANK" report should be for- warded. Form 206. Daily Accident Report. Size, 8% X 11. THE WESSEX COMPANY STATEMENT OF ACCIDENT ON THE DIVISION Name Date Address Business Address Referring to Accident of 19. ., I herewith make the following voluntary statement: Form 207. Report of Accident by Witness. Size, 8y 2 X 14 ACCIDENT CLAIMS 429 THE WESSEX COMPANY Division .191. Dear : Your name has been reported as one of several witnesses to an accident which happened about o'clock M., on the day of 19...., at or near Streets where a Will you kindly fill out blank on reverse side of this sheet and return it in the enclosed envelope, in order that the most complete information may be obtained. And greatly oblige, for The Wessex Company Form 208. (a) Report of Accident by Witness (first page of folder). Size, 8 l / 2 X n. s > ° %*•£ c a> .c <~ S *.* o bt O " £ 3 c E *£ h O M -g w 2 o cs o c . T3 .C C3 4) Q£P£P « o o o< « ft 43« ADDITIONAL FORMS KINDLY WRITE YOUR NAME AND ADDRESS IN FULL AND RETURN TO CONDUCTOR OR MOTORMAN. (Name in Full) (Street and Number) (Name of Town) (Over) — Form 209. (a) Request for Address of Witness of Accident (face). Size, 3V 2 X 2. Names are requested to assist In determining responsibility for this accident. Information thus obtained aids us In our efforts to prevent similar mishaps in the future. General Manager, THE WESSEX CO. Form 209. (b) Request for Address of Witness of Accident (reverse). THE WESSEX COMPANY Claim Report of for Month of 191 ... . Pending at 1st of Mo. Made During Mo. Disposed of Num-| ber 'Remarks Num- | ber Day Remarks Num- ber Day Method 1 | 1 I 1 2 2 | 2 3 I 3 3 4 4 4 51 5 5 6 6| 6| 7 ! 7 i 7| 31 | 31 31 1 32 32 32 33 33 33 34 34 34 35 35 ? 5 36 36 36 37 I 37 I I 37 1 Form 210. Monthly Record of Claims. Size, %y 2 X 13. (Column continued on reverse side of form.) ACCIDENT CLAIMS 431 or z g 1 So z g.J GI 3Z D § og O 1U 3 §3 §2 "5 jt? a < 5 UJ > a z z 2 § _J X UJ ZV- ID -5 lO £e UJ 5 "J £ a* UJ r H 2 < «?: q o; UJ nj Sfc 22 Si < 5 2 6 S 2 z_ § S lu 5 P £ S J 3 1 3 1 u 1 9 \ u 432 ADDITIONAL FORMS I Ml < o < a* o u w CO CO w X >> ft E 3 c O E O :< id :oh u ti u H CO O O < H O H 6 •a O M CT3 CO \_^ W « N < 0) S E w O « ta N E u O INDEX (Figures in parentheses indicate form numbers.) Abstracts, checking in comptroller's office, 131 foreign company shipments, inward, 128 outward, 127 Accident and damage reserve, 286 Accident report, by car crew, Forms (204), 427 by witness, Forms (207-209), 429-431 daily, Forms (206), 429 manager's, Forms (205), 428 monthly, 329 Forms (140), 329 Accounting department, general functions, 1-3 organization, 1-21 Accounts, accident and damage reserve, 286 bankrupt, handling, 298 fuel inventory, 270 general stores, 273 interest and deposit, 284 payable, 302 power station, 268 property and equipment with- drawal, 282 receivable, 291 replaced machinery stock, 280 reserves, 284 scrap, 275, 277 Additions and betterments, 229- 244 authorizations, 229 belated bills, 243 charges against other com- panies, 241 definite limitations, 230 distribution of charges, 237 forms, preparation of, 233 Forms (106), 232 index, 241 leased properties, 235 ledger, 238 Forms (108), 239 ledger transfer books, 240 material, 231 notice of approval, 236 Forms (107), 236 pay-roll charges, 231 physically completed, 242 treatment of salvage material, 234 ledgers, 240 necessary records, 229 new construction, 243 supervision, 13 Advance charges, express, 124 Agents, express, balance sheet (See "Balance sheet") ledger in comptroller's office, 137 433 434 INDEX Agents, express — Continued remittances, bank report of, 135 Forms (59), 135 checking in comptroller's of- fice, 135 Application for employment, Forms (159), 381, 382 Arc lamps, accounting for, 146 Armature, defective, tag, Forms (184), 408 repair record, Forms (186), 409 tag, Forms (185), 408 Attachments, permit for, 255 Forms (112), 256-557 Auditors, traveling, claim agents' accounts checked by, 254 instructions, 368 list of inquiries, 363 report, 366 supervision of inventories, 369 work of, 358 Audits, checking of processes, 358 inside office, 372 instructions for auditors, 368 inventory procedure, 369 list of inquiries, 363 supervision of inventories, 369 traveling auditors, report, 366 work of, 358 treasury department, 371 Authorizations, 229 belated bills, 243 charges against other compa- nies, 241 completed, 242 definite limitations, 230 distribution of charges, 237 index, 241 leased properties, 235 ledger, 238 Forms (108), 239 ledger transfer books, 240 material, 231 notice of approval, 236 Forms (107), 236 pay-roll charges, 231 preparation of forms, 233 Forms (106), 232 statement, 330 Forms (141), 330 treatment of salvage material, 234 Auto expense, comptroller's monthly report, 280 Forms (118), 280 daily report, 278 Forms (116), 278 division manager's monthly re- port, 279 Forms (117), 279 sub-ledgers, 2JJ Auxiliary operations, accounting for outside opera- tions, 144 arc lamps, accounting for, 146 cancellation of charges against consumers, 152 cash book, summary, 153 electricity, sale of, 145 gas, sale of, 145 Interstate Commerce Commis- sion system of accounting, 145 meters, accounting for, 146 deposits, receipts for, 149 Forms (62), 150 INDEX 435 Auxiliary operations — Continued meters — Continued deposits, records for main and division offices, 148 parks, resorts and other attrac- tions, 155 returning overpayments to con- sumers, 153, 154 transformers, accounting for, 146 water, sale of, 145 B Bags, conductors', report,. 31 Forms (9), 31 Balance sheet, cashier's, checking in comptrol- ler's office, 86 division cashier's, 27 Forms (29), 78 express agent's, 124 Forms (57), 125 corrections, 132 Forms (58), 133 general, 315 Forms (130), 316 Bank, daily report to treasurer, 29 Forms (8), 30 deposit of money in, 102 report of agent's remittances, 135 Forms (59), 135 Bankrupt accounts, handling, 298 Betterments (See "Additions and betterments") Bills, Forms (119), 292 approval, 292, 302 checking shippers' statements, 309 collectible ledger, 295 Forms (122), 296 collectible index, 295 Forms (122), 296 collectible register, 293 Forms (120), 294 collecting, 117, 139, 296 corrected, 301 for cutting wires, 296 frequency of vouchering, 306 inward shipments, 117 Forms (53), 1 18 making out, 291 outward shipments, 117 Forms (52), 118 park rental, 297 Forms (123), 297 payable (See "Invoices and Vouchers") sight draft bill of lading, Jn<> unpaid, list of, 295 Forms (121), 295 unpaid, report of, 119 Forms (54), 120 voucher checks, 303 Forms (124), 304 voucher register, 306 Forms (125), 307 Bills of lading, 94 Forms (33, 34, 35, 3°), 95"98 sight draft, 299 Bin card, 370 Forms (203), 425 Buying (See "Purchasing de- partment") Car crew, report of accident, Forms (204), 427 Car hours, report of changes in running time, 353 Forms (153), 354 Car house, additional forms, 398 Forms (175-188), 399-410 43^ INDEX Car inspection reports, 355 Forms (154, 179, 180), 356, 404, 405 Car mileage, 350 cashier's report of, 352 Forms (151), 352 inspection reports, 355 Forms (154), 356 method of recording, 351 Forms (150, 151, 152), 351-352 non-revenue, report of, 167 Forms (73), 167 Car replacement report, Forms (183), 407 Cars, card record of, Forms (178), 403 chartered, 53 cashier's report of, 56 collection of money, 58 connecting divisions, 59 distribution of charge for, 58 instructions to division cash- ier, 56 orders for, 53 Forms (21), 53 originating division, 58 payment for, 55 extra, report of, 164 Forms (70), 164 foreign, 54 passenger, transportation of packages on, 60 removed from service, daily report, Forms (187), 409 summary, monthly, Forms (188), 410 telephone report of, daily, Forms (166), 387 Cash, cashier's daily report of, 29 Forms (7), 30 checking daily report of, 84 daily report from bank, 29 Forms (8), 30 division cashier's routine, 36 Cash book, claim agent's, 254 passenger business, 71 summary, division cashiers' ac- counts, 89 summary, refunds to light and power consumers, 153 working fund, 71 Cash fares (See "Fares") Cashier, comptroller's office (See "Comptroller's office") Cashiers, division, 35-46 application for pupil's ticket, 50 Forms (20), 51-52 balance sheet, 77 Forms (29), 78 cash, daily report of, 29 Forms (7), 30 cash slips, sorting, 36 chartered cars, 53 distribution of charge for, 58 order, 53 Forms (21), 53 report of, 56 conductors' cash, 35 conductors' "shorts," 47 day cards, correcting, 46 sorting, 36 verification of record, 40 employee's deposit receipt, pro- cedure when lost, 65 Forms (25), 68 express labels, 60 Forms (22), 61 fare-box reports and reconcilia- tion, 44 fidelity insurance, 340 foreign cars, 54 ledger of, 89 INDEX 437 Cashiers, division — Continued packages, record of, 64 package labels sold, checking report of, 63 passenger earnings, daily re- port, checking by day cards, 45 compiling, 38-40 Forms (16), 39 reporting by routes, 46 period report of business, 74 Forms (28), 75-76 register repair report, 44 Forms (18), 43 register reports, reconciliation of, 41 Forms (17), 42 school children's tickets, 40 short and over list, 47 Forms (19), 48 "shorts," doubtful, handling, 48 special duties, 47-70 tickets, daily report of, 37 Forms (15), 38 tickets and passes, counting, 37 transfers, checking of, 46 working fund statement, 73 Cash slips, 26 Forms (3), 27 sorting, 36 Certificate, ties accepted, Forms (i97). 420 to pay-rolls, 188 Forms (84), 188 Chartered cars (See "Cars") Checks, voucher, 303 Forms (124), 304 Claims, adjustment, 142 agents, accounts, 252 accounts checked by traveling auditors, 254 cash book, 254 fidelity insurance, 340 working fund, 253 card record, Forms (212), 433 investigating, 141 ledger, Forms (211), 432 losses, damages, overcharges, 140 monthly record, Forms, (210), 431 register, 140 Forms (60), 140 request to claimant for papers, 141 Forms (61), 141 Classification sheets, material is- sued, 214 Forms (08), 214 Coal, adjustments of measurements reported, 271 monthly report of consumption, 245 Forms (109), 246 statement of cost of, 272 C. O. D. shipments, 104 collecting, 107 labels, 106 Forms (44), 106 register, 107 Forms (45), 107 way-bill and delivery sheet, 105 Forms (43). I0 5 Collections, 291, 296 in comptroller's office, 139 Comptroller's office, 7 abstracts, 131 audit of, 372 balance sheet corrections, 132 Forms (58), 133 cash, checking dailv report of, 84 438 INDEX Comptroller's office — Continued cashier, balance sheet of, 86 daily report of, 29 Forms (7), 30 claims, adjustment, 142 investigating, 141 Forms (61), 141 registering, 140 Forms (60), 140 collection of express bills if agent is unsuccessful, 139 detail books, cash summary book, 89 division cashiers' ledger, 89 report of tickets, 87 Forms (30), 81 summary of passenger busi- ness, 89 Forms (32), 88 distribution of work, 92 duties, 18 express agents' ledger, 137 express agents' remittances, 135 express and freight, nature of work done, 130 express earnings compiled, by divisions, 136 by stations, 136 general journal entries, preparation of, 137 ledger, correction, 134 passenger business, final record of, 90 passenger earnings, daily, 84 passenger service, nature of work done, 80 pay-rolls, 185 register and fare-box reports, 82 statements, preparation of, 91 ticket sales and miscellaneous business, 86 tickets and passes, counting, 81 daily report of collected, 37 Forms (15), 38 way-bills, 131 transit book, 132 unreported, 132 Conductors, badge numbers, check on bags, 32 Forms (10), 32 bags, tally sheet for, 31 Forms (9), 31 card list of, Forms (163), 386 drop-safe, 28 examination on safety rules (See "Safety rules") instruction card, Forms (161), 384, 385 receiver's receipt for bags, 26 Forms (5), 28 reports, cash slips, 26 Forms (3), 27 day cards, 23 Forms (i, 2), 24, 25 express labels sold, 60 Forms (22), 62 ticket envelope, 26 Forms (4), 27 "shorts," collecting, 47 time slip, 163 Forms (69), 163 Connecting division, chartered cars, 59 Construction, new, 243 Consumers, lighting and power service, 145 cancellation of charges, 152 overpayments, returning, 154 refunds to, 153 Correction ledger, 134 INDEX 439 Costs, shop records, 346 Counsel, duties, 7 Credit, extended to shippers, 119, I21 withdrawing, 121 Cutting wires, bills for, 296 Damage and accident reserve, 286 Day card, conductor's, 2$ Forms (1, 2), 24-25 correcting, 46 express labels, report of, 60 passenger earnings, daily report checked by, 45 sorting, 36 verification of record, 40 Defect card, Forms (181), 406 Departmental organization, 3 Departments, duties of heads, 5 number, 5 Deposit and interest accounts, 284 Deposits, employees', for working tools, 65' procedure lost receipt, 65 Forms (25), 68 receipt, 65 Forms (24), 66 meter, 148 Depreciation reserves, 285, 287 Detail books, 259 Disbursements and receipts, daily statement of, 31 1 Forms (128), 312 report of general stores, 322 Forms (136), 323 Discount, expediting bills to take advantage of, 207 Dispatcher, daily report, Forms (168), 388 Distribution, charge for chartered cars, 58 charges under an authorization, 237 pay-roll (See "Pay-rolls") Divisional organization, 3, 8 advantages, 16 disadvantages, 16 Division cashier's routine (See "Cashiers") Division manager, chartered car order, 53 Forms (21), 53 foreign cars, procedure, 54 instructions to division cash- ier, 56 oversight of division affairs, 8 reports, 245-252 (Sec also "Re- ports") coal consumption, 245 Forms (109), 246 lubricants used, 250 (Forms (ill), 251 of accident, Forms (205), 428 power station output, 248 Forms (no), 249 shop and car house, additional forms, Forms (178-188), 402-410 transportation, additional forms, Forms (159-1 77). 380-401 Division offices, accounting in, 23 Divisions, express earnings com- piled by, 136 Dogs, transportation of, 65 Driver's sheet, 100 Forms (39), 101 Drop-safes, 28 checking contents of, 3 1 list of conductors' badge num- bers, 32 Forms (10), 32 44Q INDEX Drop-safes — Continued tally sheet for conductors' bags, 31 Forms (9), 3 1 Duties of officers, 5-7 E Earnings, express, compiled by, divisions, 136, 310 Forms (127), 311 stations, 136 general operating, ledger, 265 park, ledger, 269 statement of, 326 Forms (138), 326 passenger, 22 compiled by routes, 324 Forms (137), 325 statement of, 91 reports, express, 321 Forms (135), 321 monthly operating, 317 Forms (131, 132, 133, 134). 3I/-3I8 passenger, checking, 84 Electricity, sale of, 145 Emergency station report, Forms (173), 397 Employees, application for position, Forms (159), 381, 382 classification of, 155, 158 deposits for working tools, 65 duplicate receipt, application for, 65 Forms (25), 68 lost receipt, procedure, 65 Forms (25), 68 receipt for, 65 Forms (24), 66 illiterate, payment of, 187 increase in, 179 Forms (80), 180 index card of, 193 Forms (88), 183 lunch vouchers, 68 Forms (26), 69 report of, 69 Forms (27), 70 payment of, 186 resignations and promotions, 181 unpaid, record of, 189 Forms (85), 189 Engineer, construction, duties, 7 in charge of power and equip- ment, duties, 7 Engineering department, 255 maintenance of way, Forms (194-197), 418-420 power and equipment, Forms (189-193), 411, 417 Equipment, maintenance of, state- ment, 331 Forms (142), 33* Errors, correction of, in general ledger, 268 Examination, conductors, on safety rules (See "Safety rules") Expense, auto, sub-ledgers, 277 express, report of, 321 Forms (135), 321 ledger, general operating, 265 handling of, 267 park, 269 operating, monthly report of, 317 Forms (132), 318 park, statement, 326, Forms (138), 326 scrap, 277 INDEX 441 Express, 3 abstracts, inward, foreign company shipments, 128 outward, foreign company- shipments, 127 advance charges, 124 agents, fidelity insurance, 341 ledger, 137 period balance sheets, 124 Forms (57), 125 bill of lading, 94 Forms (33), 95 bills, collecting, 117 inward shipments, 117 Forms (53), "8 outward shipments, 117 Forms (52), 118 claims, investigating, 141 register, 140 Forms (60), 140 classification of shipments, 94 C. O. D. shipments, 104 collecting, 107 labels, 106 Forms (44), 106 register, 107 Forms (45), 107 way-bill and delivery sheet, 105 Forms (43), 105 credit, extending, 119, 121 withdrawing, 121 driver's sheet, 100 Forms (39), 101 incoming shipments, 99 notice of, 99 Forms (37), 99 labels, 104 Forms (42), 104 organization, 93 outgoing shipments, 94 "over, short and damaged" re- ports, 108 Forms (46), 109 record, no Forms (47), 1 11 receipt for delivered shipment, 100 Forms (38), 100 receipt for money, 100 Forms (40), 102 refused shipments, 100 reports, earnings and expenses, 321 Forms (135), 321 package labels, 63 unpaid bills, 119 Forms (54), 120 settling comptroller's correc- tions, 126 settling sheets, 115 inward way-bills, 115 Forms (51), 116 outward way-bills, 115 Forms (50), 116 posting to ledger, 117 supervision, 13 tracers, 114 Forms (49), 114 way-bills, 104 Forms (41), 103 abstracting, 112, 121 Forms (55, 56), 122-123 correcting, 112 Forms (48), 113 outward, foreign company shipments, 127 Extra cars run, report of, 164 Forms (70), 164 442 INDEX F Fare-box, readings, 32 Forms (13), 34 reports, checking in comptroller's of- fice, 82 reconciliation, 44 Fares, cash, accounting for, 3 receivers' tally sheet of conduc- tors' cash, 29 Forms (6), 29 Fidelity insurance, 339 Filing, method of destroying old rec- ords, 337 Forms (144), 337 reports, 143 system, 336 Fire extinguisher, inspection re- port, Forms (177), 402 Fire inspection report, Forms (175), 399 Fire insurance records, 283 Flat wheel, report, Forms (182), 407 Foreign cars, manager's procedure, 54 register reading report, 35 Forms (14), 35 Foreign company shipments, inward abstracts, 128 outward abstracts, 127 outward way-bills, 127 Foreign divisions, transportation of packages on, 63 Forms, classes of, 9-10 feature of operating method, 10 representation, emphasis, 310, 378 size, 378 Freight (See "Express") Freight bills, stamped by stores keepers, 221 Fuel inventory sub-ledger, 270 adjustments of coal measure- ments reported, 271 corrections and adjustments in, 271 Functions, accounting depart- ment, 1-3 cash fares, 3 express and freight service, 3 Gas, sale of (See "Consumers") General books, 259 General stores (See also "Stores") charges to, 222 General traffic agent, duties, 7 Graphic statistics for officers, 356 Improvements (See "Additions and betterments") Income (See "Earnings") Index, authorizations, 241 bills collectible, 295 Forms (122), 296 vouchers payable, 308 Inspection, car, reports, 354 Forms (154, 179. 180), 356, 404, 405 Inspector, register readings, 32 Forms (11), 33 report of, Forms (164), 386 INDEX 443 Instruction card, conductors, Forms (161), 384. 385 motormen, Forms (162), 384, 385 Insurance, fidelity, 339 fire, records, 283 Interest and deposit accounts, 284 Interstate Commerce Commis- sion, 265 accounting for auxiliary opera- tions, 145 "Uniform System of Accounts for Electric Railways," 2 Inventories, 226 Forms (105), 227 accuracy in taking, 370 procedure in taking, 369 supervision by traveling audi- tors, 369 Invoices, 200, 205 (See also "Bills") expediting, to take advantage of discount, 207 lacking, 207 monthly report of, 208 Forms (95\ 209 Journal, general, 260 entries, 264 entry blanks, 260 Forms (113), 260 preparing entries for, 137 Labels, express, 104 Forms (42), 104 on packages sent on passenger cars, 60 Forms (22), 61 Labor-saving devices, 338 Lamps, arc, accounting for, 146 Leased properties, authorizations for work done, 235 Ledger, additions and betterments, 240 authorization, 238 Forms (108), 239 transfer books, 240 auto expense, 277 bills collectible, 295 Forms (122), 296 bills payable, 308 claim, Forms (211), 432 correction, express, 134 division cashier's, 89 expense, handling of, 267 express agent's, 137 fuel inventory, 270 adjustments of coal measure- ments reported, 271 corrections and adjustments, 271 general, arrangement of accounts for general balance sheet, 264 correction of errors, 268 entries, 264 general operating earnings and expense, 265 Forms (114), 266 general stores, 273 park earnings and expense, 269 posting settling sheets, 117 power station expense, 268 scrap, 275 Legal department, 252-255 claim agents, accounts, 252 working fund, 253 Library, working, 341 Line superintendent's report, Forms (174), 397 444 INDEX Log, daily, power station, Forms (189), 412 substation (190), 413 Lost article tag, Forms (169), 389 Lubricants, monthly report of, 250 Forms (in), 251 Lunch voucher, employees', 68 Forms (26), 69 record of, 69 Forms (27), 70 M Machinery, replaced stock account, 280 replaced under authorization, 234 Maintenance, equipment, statement of, 331 Forms (142), 33* of way, Forms (194-197), 418, 420 of way and structures, comparative statement, 332 Forms (143), 332 Manifests, 212 Forms (97), 213 Material, report of, daily, of received, 204 Forms (93), 204 monthly, of issued, 214 Forms (99), 215 of uninvoiced, 207 Forms (94), 208 Meters, accounting for, 146 deposits, 148 receipts, 149 Forms (62), 150 receipts, temporary, 151 Forms (63), 151 Motormen, card list of, Forms (163), 386 express and freight, day card, 167 Forms (72), 166 instruction card, Forms (162), 384, 385 time slips, 163 Forms (69), 163 Motor truck (See "Auto") N Notice, correction, to express agent, 134 freight, 09 Forms (37), 99 Occupation, classification by, 158 Officers, duties, 5-7 graphic statistics for, 356 Oil, cost statement, 333 Operating department (See "Di- vision manager") Operating earnings and expense ledger, 265 Forms (114), 266 Orders, blank, 198 Forms (91), 198-199 following up, 200 shop, 217 Forms (101), 217 Organization, accounting department, 1-21 comptroller, duties of, 18 forms, classes of, 9 "inside" work, 12, 14 main office, 17 Chart (II), 17 "outside" work, 12 INDEX 445 Organization — Continued accounting department — Con- tinued staff, 15 supervision, large amount of, 11 departmental, 3 divisional, 3 advantages, 16 disadvantages, 16 duties of comptroller's staff, 19 express and freight service, 93 street railway company, 1-21 Chart (I), 6 departmental, 3 divisional, 3 duties of officers, 5 Originating division, chartered cars, 58 "Outside" work, 12 "Over, short and damaged" re- ports, 108 Forms (46), 109 record, no Forms (47), in Packages, cashier's record of, 64 transportation of, on foreign divisions, 63 on passenger cars, 60 Parks, auxiliary operations, 155 bills for rental, 297 Forms (123), 297 earnings and expense sub- ledger, 269 statement of earnings and ex- penses, 326 Forms (138), 326 Passenger service, 22-91 accounting in division offices, 23 cash book, 71 forms, additional, Forms (159-177), 380-401 record of, final, 90 reports, of earnings, checking in comptroller's office, 84 of earnings, compiling daily, 38 Forms (16), 39 summary of business, from local cashiers, 89 Forms (32), 88 source of street railway income, 22 supervision, 13 Passes, counting, 37 in comptroller's office, 81 Paymasters' account, 195 Pay-rolls, Forms (75-/8), 170-173 adjustment of disputed time, 169 Forms (74), 168 approval of time slips for out- side work, 174 approving, 159 assignment of wages, 187 Forms (83), 187 certificate to, 188 Forms (84), 188 change of, 182 Forms (81), 182 charges against authorizations, 231 checking in comptroller's office, 185 classification, by occupation, 158 of employees, 157 computing time, 161 446 INDEX Pay-Roils — Continued conductors' and motormen's, Forms (77, 78), 172, 173 day-card, express motorman, 165 Forms (72), 166 distribution of, detailed, 192 monthly, 195 Forms (89), 194 weekly, 192 Forms (87), 192 extra time, 164 Forms (70), 164 final checking of, 192 final record and journal entries, 195 illiterate employees, 187 increased force of employees, 179 Forms (80), 180 increase of pay, 178 Forms (79), 178 index card of employees, 193 Forms (88), 193 miscellaneous time allowed, 165 Forms (71), 165 monthly distribution of, 195 Forms (89), 194 notice of errors to comptroller, 185 procedure, 157 in paying off, 186 proof sheet, 184 Forms (82), 184 record of "authorities," 193 record of unpaid employees, 189 Forms (85), 189 resignations and promotions, 181 Forms (81), 182 rules to follow in making out, 183 sliding scale of wages, 179 supervision, 13 time cards, conductors' and motormen's, 163 Forms (69), 163 line employee's, 161 Forms (64), 160 non-revenue car mileage, 167 Forms (73), 167 shop employee's, day, 161 Forms (65), 160 shop employee's, night, 161 Forms (66), 160 superior employee's, 162 Forms (68), 162 track employee's, 161 Forms (67), 161 unclaimed wages, 189 varieties, 169 Forms (75, 76, 77, 78), 170-173 wages not claimed at regular time, 189 weekly distribution of, 192 Forms (86), 191 weekly wage table, 175 writing off unclaimed wages, 193 Photographer, order to, Forms (160), 383 Posting, errors in, 268 Power and equipment, Forms (189-193), 4IJ-417 Power plant, replaced under au- thorization, 234 Power station, daily log, Forms (189), 412 expense ledger accounts, 268 monthly report, Forms (191), 414 report of output, 248 Forms (no), 249 statement of expenses, 327 Forms (139), 328 INDEX 447 Proof sheet, pay-roll, 184 Forms (82), 184 Property and equipment with- drawal account, 282 Public service commission state- ments, 334 Purchasing department, 196-200 buying, 198 duties of purchasing agent, 7 following up orders, 200 invoices, 200 order blank, 198 Forms (91), 198-199 procedure, 196 requisition, 196 Forms (90), 197 supervision, 13 Rail and joint grinding, daily re- port of, Forms (194), 4*8 Receipts, for money collected as freight charges, 100 Forms (40), 102 freight, 100 Forms (38), 100 meter deposits, 149 Forms (62), 150 temporary, 151 Forms (63), 151 Receipts and disbursements, report of general stores, 322 Forms (136), 323 statement of daily, 3* 2 Forms (128), 312 Receiver, receipt for conductors' bags, 26 Forms (5), 28 tally sheet of conductors' cash, 29 Forms (6), 29 Reconciliation of register reports, 4i Forms (17), 42 Records, card, Forms (212), 433 claims, monthly, Forms (210), 431 classes of, 9-10 old, method of destroying, 337 Forms (144), 337 Refunds, to consumers of light and power, 153 Register, bills collectible, 293 Forms (120), 294 index, 295 Forms (122), 296 C. O. D., 107 Forms (45), 107 express claim, 140 Forms (60), 140 voucher, 306 Forms (125), 307 index, 308 Registers, car, clock, 26 fire-box, 26 readings, 32 Forms (11), 33 checking in comptroller's of- fice, 82 reconciliation of, 41 Forms (17), 42 repair, 44 Forms (18), 43 Remittances, agent's, checking, 135 treasurer's report of cashier's, 84 Forms (31), 85 448 INDEX Rental, park, bills for, 297 Forms (123), 297 Repair report, fares registered, 44 Forms (18), 43 Replaced machinery, stock ac- count, 280 Reports, accident (See "Accident, re- port") car inspection, 354 Forms (154, 179, 180), 404,405 car mileage, from cashier, 352 Forms (151), 352 non-revenue, 167 Forms (73), 167 car replacement, Forms (183), 407 cars, chartered, from cashiers, 56 cars removed from service, daily, Forms (187), 409 summary, monthly, Forms (188), 410 cash, daily, checking of, 84 cash, from cashiers, 29 Forms (7), 30 coal consumption, 245 Forms (109), 246 conductors, day cards, Forms (1, 2), 24-25 express labels used and sold, 60 Forms (23), 62 short and over, 47 Forms (19), 48 daily telephone, of cars, Forms (166), 387 dispatcher's^ daily, Forms (168), 388 division stores keeper's, supplies shipped, Forms (202), 434 emergency station, Forms (173), 397 express earnings and expenses, 321 Forms (135), 321 extra cars, 164 Forms (70), 164 fare-box, reconciliation, 44 filing, 143 fire extinguisher inspection, Forms (177), 402 fire inspection, Forms (175), 399 flat wheel, Forms (182), 407 general stores, receipts and disbursements, 322 Forms (136), 323 reconciliation, 274 inspector's, Forms (164), 386 line superintendent's, Forms (174), 397 lubricants used, 250 Forms (in), 251 lunch vouchers, 69 Forms (27), 70 monthly income, 313 Forms (129), 314 relation to Interstate Com- merce Commission account, 315 monthly operating earnings and expense, 317 Forms (131, 132, 133, 134). 317, 318, 319, 320 motor cars, daily, 278 Forms (116), 278 INDEX 449 Reports — Continued motor cars — Continued monthly, 279 Forms (117), 279 non-revenue car mileage, 167 Forms (73), 167 "over, short and damaged," 108 Forms (46?, 109 passenger earnings, by routes, 46 checking in comptroller's of- fice,- 84 daily, 38, 310 Forms (16, 127), 39, 311 period, of business, 74 Forms (28), 75-76 power station, monthly, Forms (191), 414 power station output, 248 Forms (no), 249 rail and joint grinding, daily, Forms (194), 418 receiver's report of collections, 29 Forms (6), 29 register and fare-box readings, 32 Forms (12, 13, 14), 33-35 checking in comptroller's of- fice, 82 register, reconciliation of, 41 Forms (17), 4 2 repair report, 44 Forms (18), 43 remittances, agent's, from bank, 135 Forms (59), 135 cashier's, from treasurer, 84 Forms (31), 85 scrap accumulated, 223, 275 Forms (104), 224 "short," daily, Forms (199), 422 sprinkler, Forms (176), 400, 401 starter's, Forms (165), 387 substation, monthly, Forms (192), 415 summary of, from local cash- iers, 89 Forms (32), 88 tally sheet for conductors' bags, 3i Forms (9), 31 tickets, 87 cashier's, daily, 37 Forms (15), 38 monthly, compiled in comp- troller's office, 81 Forms (30), 82 tickets and miscellaneous busi- ness, 63 Forms (28), 75 checking in comptroller's of- fice, 86 period, 74 Forms (28), 75-76 track laid, Forms (196), 419 unpaid bills, 119 Forms (54), 120 work on track, daily, Forms (195). 4*9 yearly, 333 Requisitions, 202 purchase, 196 Forms (90), 197 Reserves, accident and damage, 286 depreciation, 285, 287 Routes, earnings by, 324 Forms (i3/)» 3-5 Rules, safety (See "Safety rules") Rush material, request, Forms (198), 422 45° INDEX Safety rules, examination of con- ductors on, automatic signals, Forms (171), 393-394 general, Forms (170), 390-392 hand-thrown signals, Forms (172), 395-396 Sales, sundry, 299, checking, 300 School children's tickets, 49 Scrap, account, 275 credit ticket, 219 Forms (103), 220 expense account, 277 report of, 223, 275 Settling sheets, 115 inward way-bills, 115 Forms (51), 116 outward way-bills, 115 Forms (50), 116 posting to ledger, 117 Shipments (See also "Express") classification of express and freight, 94 refused, 100 Shipping memorandums, checking with material re- ceived, 205 Shop and car house, Forms (175-188), 399-410 Shop orders, 217 Forms (101), 217 Shop records and costs, 346 axle record, 348 Forms (147), 348 car wheel, 346 Forms (146), 347 monthly report, 348 Forms (149), 349 report of pressing on and off wheels, 346 Forms (145), 347 report of wheels and axles put under or removed, 348 Forms (148), 349 utility of, 348 "Shorts," collecting conductors', 47 daily report, Forms (199), 422 handling of doubtful cases, 48 "Sight draft bill of lading," 299 Signals (See "Safety rules") Sinking funds, 287 leading accountants on, 288 Size of forms, 378 Sprinkler report, Forms (176), 400, 401 Staff, accounting department, 15 Starter, report of, Forms (165), 387 Statements, authorizations, 330 Forms (141), 330 checking shippers', 309 comparison of maintenance of way and structures, 332 Forms (143), 332 cost of, coal, 272 oil used, 333 earnings by routes, 324 Forms (137), 3^5 general stores, 275 maintenance of equipment, 331 Forms (142), 331 miscellaneous monthly, ^33 monthly, 313 monthly income, relation to Commerce Com- mission account, 315 monthly income report, 313 Forms (129), 314 INDEX 451 Statements — Continued park earnings and expenses, 326 Forms (138), 326 passenger earnings, daily, 310 Forms (127), 311 daily cash, 91 by periods, 91 power station expenses, 327 Forms (139), 328 Public Service Commission, 334 quarterly, motor car cost rec- ord, 280 Forms (118), 280 receipts and disbursements, daily, 311 Forms (128), 312 seven days' cash passenger earnings, 91 to officials and stockholders, 334 transfers collected, 92 weekly, 313 yearly, 333 Stationery, economy in, 339 Stations, compiling express earn- ings by, 136 Statistician, duties, 15 car hours, 353 Forms (153), 354 car mileage, 350 method of recording, 351 Forms (150, 151, 152), 35*- 352 conservative methods of pre- senting, 345 graphic, for officers, 356 investigations, 346 shop and costs records, 346 study of costs and methods of operation, 344 Stock (See "Stores") Stock card, 205 Forms (92), 203 Stockholders, statements to, 334 Stores, Forms (198-203), 421-425 balance, notice of, to stores keepers, 276 Forms (115), 276 bin card, 370 Forms (203), 425 care of material, in stock, 219 outside the storeroom, 220 charging material, rule for, 206 discount bills, expediting, 207 freight bills stamped by stores keeper, 221 general, charges to, 222 receipts and disbursements, monthly report, 322 Forms (136), 323 reconciliation reports, 274 statement, 275 sub-ledger, 273 invoices, 205 lacking, 207 passed, monthly report, 208 Forms (95), 208 issued, 274 classification, 214 Forms (98), 214 report, monthly, 214-216 Forms (99, 100), 215, 216 slips, 209, 211 Forms (96), 210 to other divisions, 212 Forms (97). 213 to outsiders, 218 Forms (102), 218 material received, daily report of, 204 Forms (93), 204 reconciliation report, 208 Forms (95), 209 452 INDEX Stores — Continued relation to accounting depart- ment, 201 request to replenish stock, Forms (200), 423 request to ship supplies, Forms (201), 424 requisitions, 202 Forms (90), 197 foreman's, 209 Forms (96), 210 routine, 201 scrap accumulated, report of, 223 Forms (104), 224 scrap credit ticket, 219 Forms (103), 220 shipping, division stores keep- er's report, Forms (202), 424 shipping memorandums, check- ing with, 205 shop orders, 217 Forms (101), 217 stock cards, 205 Forms (92), 203 storeroom account, detail of, 216 Forms (100), 216 stores keeper (See "Stores keeper" below) supervision, 13 treatment of manifests, 212 Forms (97), 213 uninvoiced material, report of, 207 Forms (94), 208 Stores keeper, duties, 7 fidelity insurance, 340 Substation, daily log, Forms (190), 413 monthly report, Forms (192), 415 Sundry sales, 299 checking, 300 Supervision, 11 additions and betterments, 13 express and freight service, 13 passenger service, 13 pay-rolls, 13 purchasing, 13 stores, 13 Supplies (See "Stores") Tax records, 283 Telephone, report of cars, daily, Forms (166), 387 toll calls, daily record, Forms (167), 387 Test card, Forms (193), 4*6, 417 Tickets, cashier's daily report of, 37 Forms (15), 38 counting, 37, 81 invoice, 373 Forms (156), 374-375 loose-leaf book summary of, 87 Forms (30), 81 monthly report of, compiled in comptroller's office, 82 Forms (30), 81 requisitions for, 373 Forms (155), 373 requisitions outside, 375 Forms (157), 375 school children's, 49 stock record, 375 Forms (158), 376 Ticket books, redeeming cancelled, 309 INDEX 453 Ticket envelope, conductors', 26 Forms (4), 2j Ties accepted, certificate, Forms (197), 420 Time cards, disputed time, adjustment of, 169 Forms (74), 168 conductors', 163 Forms (69), 163 extra cars run, report of, 164 Forms (70), 164 line employees', 161 Forms (64), 160 miscellaneous time, 165 Forms (71), 165 motormen's, 163 Forms (69), 163 non-revenue car mileage, 167 Forms (73), 167 shop employees', day, 161 Forms (65), 160 shop employees', night, 161 Forms (66), 160 superior employees', 162 Forms (68), 162 track employees', 161 Forms (67), 161 Timekeepers, fidelity insurance, 340 Tracers, 114 Forms (49), 114 Track, laid, report of, Forms (196), 419 work on, daily report, Forms (195), 419 Transfer books, ledger, 240 Transfers, checking, 46 Transformers, accounting for, 146 Transit book, 132 Transportation (See "Express" and "Passenger service") Treasurer, daily report from bank, 30 Forms (7), 30 report from, of cashier's remit- tance, 84 Forms (31), 85 Treasury department, audit of, 37i Trial balance sheets, arrangement of accounts in general ledger, 264 Trucks (See "Auto") U "Uniform System of Accounts for Electric Railways," 2, 145, 265 Voucher, checks, 303 Forms (124), 304 frequency of making out, 306 payable, list of, 308 Forms (126), 308 redeeming cancelled ticket books, 309 register, 306 Forms (125), 307 index, 308 W Wages (See also "Pay-rolls") assignment of, 187 Forms (83), 187 sliding scale, 179 unclaimed, 189 writing off, 193 Water, sale of (See "Consum- ers") 454 INDEX Way-bills, 104 Forms (41), 103 abstracting, 112, 121 Forms (55. 56), 122-123 checking in comptroller's office, 131 corrections, 112 Forms (48), 113 outward, shipments foreign company, 127 transit book, 132 unreported, checking in comptroller's of- fice, 132 Wires, bills for cutting, 296 Witness of accident, report by, Forms (207), 429 Working fund, claim agents', 253 division cashier's, 71-73 cash book, 71 emergency cases, 73 statements of disbursement, 73 Yearly statements and reports, 333 UN. 'RNIA UNIVERSITY OF CALIFORNIA LIBRARY Los Angeles This book Is DUE on the last date stamped below. 3 1158 01338 4507 UC SOUTHERN REGIONAL LIBRARY FACILITY AA 001 108 838 2 lit ffl i i 1 II