I . .. - . . i : ..^COUNTING 1 I MNMJEM.ENT ! " / ' . nioersittj of (California **** Q .i* " -? & > V V,- trv-i .r^-* *? ^ ;:'v^:^ QUASI-PUBLIC CORPORATION ACCOUNTING AND MANAGEMENT. BY JOHN F. J. MULHALL, P.A. FIRST EDITION. CORPORATION PUBLISHING CO., P. O. Box 2428, BOSTON, MASS. COPYRIGHTED 1904-1905. PREFACE. THE evolution of business into corporate form necessitated a corresponding change in the methods of accounting and management, especially so for the quasi-public corporation, whose principal and auxiliary books are radically different from those of the ordinary business corporation. The scarcity of material data bearing upon Quasi-Public Corporation Accounting and Management suggested to the writer that a book of this character would be of interest not alone to those engaged either in an admin- istrative or executive capacity in the respective corporations referred to herein, but especially so to the accountant whose duty it is to arrange special forms and books of account for his particular line of business. It is the intention of the writer to state briefly the books, forms, and methods necessary for the proper organization and management of the business and the recording of all the essential details of Revenue, Operation, Maintenance, and Construction, with the least possible expenditure of time and labor consistent with good management and explicit statements as to Profit and Loss and Assets and Liabilities. The author desires to express thanks to Mr. William Wheeler, for his review of the part on Water Works and for the use of some of his forms ; to Mr. Albert F. Davol, for his review of the part on Telephone Companies ; to Mr. William F. Goepper, for his review of the part on Electric Light Works ; and to Mr. James H. Xeal, for his valuable suggestions on Electric Railway accounting and his general review of the entire work. 240730 CONTENTS. PART I. ORGANIZATION. PAGE General Prerequisites 7 Record Books 8 PART II. SECURITIES. Capital Stock 9 Bonds 12 PART III. WATER WORKS. Application Book 28 Service Card 28 Plumber's Card 29 Water, Tap, and Service Pipe Bills 30 Collector's Report 33 Treasurer's Statement 34 Controlling Method 35 House-to-House Inspection and Meter Books 35 On and Off Book. 39 Customer's Registers 163 Cash Book, Journal, and Ledger 41 Accounts Payable, Vouchers Payable, or Distribution Book 49 Voucher, Check, and Distribution 51 Classification of Revenue, Operation and Maintenance, Fixed Charges and Construction 53 Cash Book (Controlling Method) 57 Auxiliary Books . 58 (A ) Construction Record Book 58 (B) Gate Book 61 (C) Pumping Station Record Book 62 (D) Filter Record Book 62 (#) Meter Test and Meter Repair Books 62 (F) Details of Headings 63 (A-l) Construction Record Book 63 (B-l) Equipment Book, Pumping Station 63 (C-l) Real Estate Book 64 (D-l) Miscellaneous Construction Book 64 PART IV. GAS W T ORKS. Application Book, Service Card, Collector's Report, Treasurer's State- ment, Meter Book, On and Off Book, Gasfitter's Cards, Bills, 66 Customer's Registers 163 Cash Book, Journal, and Ledger 66 4 Contents. PAGE Classification of Revenue, Operation and Maintenance, Manufacturing, Fixed Charges, and Construction 69 Auxiliary Books 73 (A) Construction Record Book 73 (B) Equipment Book, Manufacturing Plant 73 (C) Real Estate Book 74 (D) Valve or Gate Book .' 74 (E) Meter Test and Meter Repair Books 74 (F} Manufacturing Book 75 Form of Report Required by Gas and Electric Light Commissioners of Massachusetts 76 Extracts from Massachusetts Law, Pertaining to Gas and Electric Light Plants 115 PART V. ELECTRIC LIGHT WORKS. Application Book, Electrician's Card, Collector's Report, Treasurer's Statement, Bills, Meter Book, and On and Off Book 116 Customer's Registers 163 Cash Book, Journal, and Ledger 117 Classification of Revenue, Operation and Maintenance, Fixed Charges and Construction 119 Auxiliary Books 122 (^4.) Construction Record Book 122 (B) Equipment Book, Power Station 123 (C) Station Record 124 (D) Real Estate Book 124 Form of Report Required by Gas and Electric Light Commissioners of Massachusetts 76 Extracts from Massachusetts Law Pertaining to Gas and Electric Light Plants 115 PART VI. STEAM HEATING WORKS. Application Book, Service Card, Collector's Report, Treasurer's State- ment, On and Off Book, Steamfitter's Card, Bills 125 Customer's Registers 163 Cash Book, Journal, and Ledger. 125 Classification of Revenue, Operation and Maintenance, Fixed Charges and Construction , 127 Auxiliary Books 129 (A) Construction Record Book 129 () Gate Book 129 (C) Station Equipment Book 129 (D) Real Estate Book 129 PART VII. TELEPHONE COMPANIES. Limited and Unlimited Service 130 Electrician's Card 130 Operator's Sheets 130 Contents. 5 PAGE Billing and Collections 131 In and Out Book 133 Customer's Registers 163 Cash Book, Journal, and Ledger 134 Classification of Revenue, Operation and Maintenance, Fixed Charges and Construction 135 Auxiliary Books 138 (A) Construction Record Book 138 (5) Equipment Book, PowerStation 140 (C) Real Estate Book 141 PART VIII. ELECTRIC RAILWAYS. General 142 Conductor's Reports 142 Inter-urban Street Railways 142 Freight and Express 143 Payrolls , 144 Paymaster 144 Supplies 144 Cash Book, Journal, and Ledger 144 Classification of Revenue, Operation and Maintenance, Fixed Charges and Construction 148 Auxiliary Books 158 (.4) Construction Record Book 158 (5) Equipment Book, Rolling Stock 159 (C) Equipment Book, Power Station 160 (Z>) Water-Power Plant, Construction Book 161 (E) Real Estate Book 161 (F) Operation Book, Power Station 162 PART IX. COMBINED INSPECTION AND CUSTOMER'S REGISTERS. Customer's Registers, running five years or more, for Water, Gas, Electric Light, Steam Heat and Telephone Companies 163 Loose-Leaf Registers 168 Card Registers 170 PART X. PURCHASING DEPARTMENT. Purchasing Agent 171 Invoices 173 Department Orders 174 PART XI. SALES DEPARTMENT. Solicitors 175 Credits, Collections, and Claims 175 Complaints 176 Fixtures 176 6 Contents. PAGE PART XII. ENGINEERING DEPARTMENT. Plans 177 Metal Plan Case 177 Extensions and Additions of the System 177 PART XIII. CHEMICAL AND TESTING DEPARTMENT. 178 PART XIV. AUDITS AND EXAMINATIONS 179 PART XV. DEPRECIATION. Maximum Life 181 Mean Life 182 Minimum Life 182 PART XVI. FUNDS AND DIVIDENDS 184 PART XVII. ANNUITY, COMPOUND INTEREST, AND SINKING FUND TABLES, 185-189 PART XVIII. MISCELLANEOUS ACCOUNT FORMS 190 PART XIX. MISCELLANEOUS INSTRUMENT FORMS 195 PART XX. OFFICE DEVICES. . 199 PART I. ORGANIZATION. QUASI-PUBLIC corporations may now be formed under the general laws of each state, but hi the past, as a rule, they were organized under special charters. GENERAL PREREQUISITES. Generally three, but sometimes five or more persons may asso- ciate themselves together by written Articles of Agreement for the purpose of forming a corporation, the number of persons necessary depending on the laws of the state under which they intend to incorporate. Their first meeting shall be called by one or more of the signers of said articles, by giving notice thereof, stating the place, time, and object of the meeting to each signer, in writing or by publi- cation hi some newspaper in the county fourteen days prior to the day of the meeting. If they all sign waiver of notice of such meeting, no notice or publication is necessary therefor. At said meeting they may organize into a corporation, adopt a corporate name, define the purposes of the corporation, fix the amount of the capital stock, divide it into shares, and elect a president, board of directors, secretary, and any other necessary officers, and may adopt a code of By-Laws. Before commencing actual business, the president, treasurer, and a majority of the board of directors prepare a certificate on a form generally prescribed by the state under which they incorporate, setting forth the purposes of the corporation, the amount of the capital stock, the amount already paid in, the kind and par value of the shares, the names and residences of the owners, etc., sign, and make oath thereto, and file same with fee therefor with the proper state official, who later furnishes them with a certificate of their incorporation. The above conditions, or others of a similar character, are the methods prescribed by the different states for incorporations. It is always advisable, however, in matters of incorporation to secure the best legal advice. 8 Corporation Accounting and Management. RECORD BOOKS. All corporations of whatever character are required by law to keep what are termed minute or record books, wherein are re- corded the Act of Incorporation, By-Laws, etc., and minutes of the meetings of the stockholders' and directors' meetings. For a small company one book will be sufficient, allotting the first half to the records of the stockholders' meetings and the last half to those of the directors' meetings. For a large company it would be advisable to have separate books for stockholders' and directors' meetings. They are also required to have a stock certificate book, stock ledger, and seal. PART II. SECURITIES. CAPITAL STOCK. Certificates of Stock in a corporation represent to the party in whose name it is issued part ownership in the corporation issuing same. The amount of issue, kind and par value of same, whether it be $25, $50, or $100, or any other figure, is fixed at the time of its issue by the vote of the corporation; and at times by the general laws of the state. When there is only one class of stock, it is considered as Common Stock; if more than one class, it is divided into Common and Preferred Stocks. There may be still further divisions of the Preferred Stock into First Preferred, Second Preferred, etc. (Stub) No. 688. Issued to . shares 190 Received the above described certificate. No. . Old Certificate No. . (Form 100) (Form of Common Stock Certificate.) AUTHORIZED CAPITAL STOCK, $2,250,000. 10,000 shares Preferred. 12,500 shares Common. No. Shares. 688. CONSUMERS' WATER COMPANY of Boston, Mass. This is to certify that is entitled to shares, of one hundred dollars each, of the Consumers' Water Company Common Stock, transferable only on the books of said company, in person or by attorney, on the surrender of this certificate. IN WITNESS WHEREOF, said company has caused this certificate to be signed and sealed by its Presi- dent and Treasurer, this day of ., A.D. 190 . Treasurer. President. 10 Corporation Accounting and Management. (Stub) No. 58. Issued to shares. 190 Received the above mentioned certificate No. . Old Certificate No.. (Form 101) (Form of Preferred Stock.) AUTHORIZED CAPITAL STOCK, $2,250,000. 10,000 shares Preferred. 12,500 shares Common. No. 58. Shares. CONSUMERS' WATER COMPANY of Boston, Mass. This is to certify that is entitled to shares, of one hundred dollars each, of the Preferred Capital Stock of the Consumers' Water Company, transferable only on the books of said company in person or by attorney on the surrender of this certificate. The holder of this Preferred Stock shall, from and after November 1, 1905, be entitled to receive from the net earnings of the company, cumulative divi- dends of six (6) per centum per annum, and to have such dividends with all arrearages, if any, paid in full before any dividends shall be paid upon the Common Stock; and whenever the net earnings of the corporation shall exceed the sum required to pay a dividend of six per centum per annum on both the Preferred and Common Stock outstanding, the surplus shall be payable in dividends pro rata to the holders of the Preferred and Common Stocks. IN WITNESS WHEREOF, said company has caused this certificate to be signed and sealed by its Presi- dent and Treasurer, this day of ., A. D. 190 . Treasurer. President. (Form 102) (Indorsement in blank. ' Form of Power of Attorney.) FOR VALUE RECEIVED, I hereby sell, assign, and transfer to shares of the stock mentioned in this certificate, and do hereby appoint Attorney, to transfer same on the books of the company, with full power of substitution. Dated WITNESS : Signature) .' Securities. 11 6 CERTIFICATE ISSUED < > i | < (Form of Stock Ledger.) (Name of Holder) Dr. S K 2 CERTIFICATE SURRENDERED 9 I 8 < I ^ t- 2 K 2 12 Corporation Accounting and Management, The above forms of both Common and Preferred Stocks are specimens of the many numerous forms used, they being made to conform with votes of the stockholders when same are issued. All classes of stock have some form of power of attorney printed on the back, so as to expedite transactions therein. The seal of a corporation is usually a die, operated by hand, having printed thereon the name of the corporation and year of its incorporation. BONDS. Mortgage bonds are liens on the property of the corporation, being promises to pay certain specified amounts at the end of fixed periods, with interest thereon at stated intervals at a speci- fied rate, and are secured by a mortgage deed of trust on a part or the whole of a corporation's property, the terms of the mortgage being set forth in detail in the deed of trust. A corporation may issue mortgage bonds, such as firsts, sec- onds, sometimes called first mortgage consolidated bonds, thirds, etc., but seldom issues over three mortgages on account of the enormous discount at which they would have to be sold. Serial bonds differ from other mortgage bonds in the date of maturity, certain portions of the issue maturing at fixed intervals. Registered bonds are entered on the books of a company to the credit of the owner and are transferable only on proper indorsement by him. Collateral trust bonds are secured by the deposit of either stocks or bonds, or both, for the benefit of the holders of said collateral bonds. Debenture bonds are promises to pay, without security, and are in effect notes of the corporation, their value depending on the ability of the corporation to pay, or the credit of the corpora- tion issuing them. Income bonds are promises to pay certain specified amounts at the end of fixed periods, with interest thereon at stated intervals out of the income of the corporation. The interest payments are not obligatory on the corporation unless the actual earnings of the corporation equal or exceed the amount necessary to meet Securities. 13 the interest on said issue after payment of all operating expenses and fixed charges. Quasi-public corporations, such as water works, gas works, electric light works, steam heating works, telephone companies, and electric railways, generally issue only what are termed mort- gage bonds, which are usually in the denomination of either $500 or $1,000, or both; while steam railways, owing to their extensive properties, and constant additions and consolidations through purchase and by lease, not only issue all kinds of mortgage bonds, but other classes of securities. Occasionally, some of the other corporations do likewise. (Form 103) (Form First Mortgage $1,000 Bond.) STATE OF MASSACHUSETTS. $1,000. No CONSUMERS' WATER COMPANY. FIVE PER CENT FIRST MORTGAGE SINKING FUND BOND, ONE THOUSAND DOLLARS. ($1,000.) THE CONSUMERS' WATER COMPANY, a corporation duly created and organized under the laws of the state of Massachusetts, is indebted to the American Trust Company, of Boston, in the Commonwealth of Massachu- setts, or bearer, in the sum of ONE THOUSAND DOLLARS, which sum it promises to pay to the bearer hereof, on the first day of October, 1925, with interest from the first day of October, 1905, at the rate of five per cent per annum, payable semi-annually on the first day of April and October in each year, on presentation and surrender of the proper interest coupon hereto annexed, at the American Trust Company, in Boston. This bond is one of a series numbered from one to two hundred, inclusive, the issue of which is limited to two hundred thousand dollars, being all of the denomination of one thousand dollars, all of said bonds being secured by a trust mortgage to the American Trust Company on all the lands, income, revenues, and other property of every kind of the Consumers' Water Company, now owned, or to be hereafter acquired, and subject to the terms and conditions of said trust mortgage. The said mortgage provides that bonds numbered from one hundred and fifty-one to two hundred, both inclusive, shall be applied solely to the payment for future extensions of the works of the said Consumers' Water Company and shall remain in the custody of the said trustee until said extensions, or part thereof, have been made; and issued then only upon 14 Corporation Accounting and Management. an order on the said trustee by the Board of Directors, accompanied by a certificate stating the extensions and the amount thereof. For further security, said mortgage establishes by annual payment a sinking fund, to provide for the redemption and retirement of the principal of said bonds. This bond shall be valid only when authenticated by a certificate indorsed hereon, signed by the American Trust Company, trustee. IN WITNESS WHEREOF, the Consumers' Water Company has <*&used its corporate seal to be affixed to this bond and the same to be signed by its President and Treasurer, this day of 1905. . President. . Treasurer. (Indorsement of Trust Company.) This is to certify that this bond is one of the series referred to within, and is entitled to the benefits of the trust mortgage to this company and of the sinking fund to be paid to it. AMERICAN TRUST COMPANY, Trustee, By Treasurer. (Form 104) (Form of Coupon.) On the first day of April, 1906, the CONSUMERS' WATER COMPANY will pay to the bearer at the AMERICAN TRUST COMPANY in Boston, Twenty-five Dollars, being six months' interest on its First Mortgage Sinking Fund Bond No Treasurer. The number of the bond is generally printed on the face of the coupon. The form of mortgage given to secure an issue of bonds varies in accordance with the necessities, conditions, and desires of the company issuing same and the demand for same in the bond market. Some companies not only create a lien on their present fixed assets, such as real estate, appurtenances, machinery, etc., but also include therein lien on all additions to and extensions of the plant during the life of the bond; and on certain portions of the income in excess of the interest moneys maturing on bond Securities. 15 issue, so that a part or the whole of the issue will be retired at the maturity of the trusteeship. One of the many forms of mortgage is as follows: (Form 105) (Form of Mortgage on Property given by Company to Trust Company to secure issue of Bonds, including therein Form of Bond.) THIS INDENTURE, made and entered into the first day of September in the year one thousand eight hundred and eighty-five, by and between THE WATER COMPANY, of , a corporation duly organized and existing under the laws of the state of , of the first part, and The Trust Company, trustee, a corpo- ration duly organized under the laws of the state of , of the second part. WITNESSETH, That whereas the party of the first part is authorized and empowered under the laws of the state of to supply with water for public and private purposes the city of hi the county of and state of , and the inhabitants thereof, by water works, under a grant to it by the provisions of an ordinance of the mayor and common council of the city of , duly adopted and approved on the twenty-ninth day of May, 1885, and duly published on the first day of June, 1885, entitled: " An ordinance providing for supplying the city of and its inhabitants with water for public and private purposes; granting to The Water Company, of the franchise and license of constructing and operating water works in the city of ; contracting with the said com- pany for the rent of fire hydrants for supplying the city of with water, and giving the city of an option to purchase the said works," and the party of the first part has entered upon the construc- tion of the said water works, and the stockholders of the party of the first part, at a meeting duly called and held at aforesaid, on the seventh day of August, 1885, unanimously adopted the following resolu- tions: by The Water Company, of , in stockholders' meeting duly assembled: " 1. That The Water Company, of , for the purpose of paying for its water works and bettering and extending the same, make and issue its first mortgage coupon bonds, to the amount of two hundred thousand dollars, to wit : Two hundred bonds of the denomi- nation of five hundred dollars each, and one hundred bonds of the denomi- nation of one thousand dollars each, the said bonds to be dated the first 16 Corporation Accounting and Management. day of September, 1885, and to mature thirty years thereafter, bearing interest from their date at the rate of six per centum per annum, payable semi-annually on the first days of March and September in each year at The Trust Company, in the city of , in the lawful money of the United States, on the presentation and surrender of corresponding interest coupons attached to the said bonds; any or all of the said bonds being redeemable in advance of their maturity on and after the first day of September, 1895, in such installments and at such times as this company at its option may from time to time elect; and further, " 2. Resolved, That, to secure the payment of the principal and interest of the said bonds, a first mortgage is hereby directed to be made and executed to The Trust Company, of , in the city, county, and state of , as trustee, upon the said water works of the said Water Company, of , in and near the city of , together with all its lands, machinery, pipes, outfit, rights, liberties, privileges, and franchises, now held and here- after to be acquired by it, with all its income and profits; and further. " 3. Resolved, That, in addition to the payment of the interest, a sinking fund, to be in charge of the said trustee, shall be created and established to provide for the redemption and retirement of the principal of the said bonds, and that, beginning with the receipts of the second day of September, in the year one thousand eight hundred and ninety, and continuing during the existence of any part of the said mortgage debt, ten per centum of the gross water rates, except the revenue from public fire hydrants, received by Water Company, of , shall be paid over to the said trustee on the first days of March and September in each and every year, to be applied to the redemption and retirement of the principal of the said bonds, but in no case at a rate exceeding ten per centum premium and accrued interest, and such of the said money as the said trustee shall not be able to use in purchasing bonds at or below ten per centum premium and accrued interest to be invested by it for the purpose of earning interest for the benefit of the said sinking fund; and further, " 4. Resolved, That, as further security for the payment of the said interest coupons, an assignment and transfer are hereby directed to be made and executed to the said trustee, of all claims and demands against the city of during the existence of any part of this mortgage debt for the rent of fire hydrants under an ordinance of the mayor and common council of the city of , adopted and approved May 29, 1885, entitled: ' An ordinance providing for supplying the city of and its inhabitants with water for public and private purposes; granting to Water Company, of , the franchise and license of constructing and operating water works in the city of ; contracting with the said company for the rent of fire hydrants Securities. 17 for supplying the city of with water, and giving the city of an option to purchase the said works, and under any addi- tional water works ordinances of the said city of , irrevocably constituting the said trustee and its successors the agent of Water Company, of . . ., to receive and receipt for all sums of money so accruing from the said city of for the rent of fire hydrants during the existence of any part of this mortgage debt; the said trustee to apply such sums to the payment of the said interest coupons as they mature, returning to the said company any surplus on hand after paying or providing for all matured interest coupons on out- standing bonds; and further, "5. Resolved, That the president and secretary are authorized and instructed to sign, seal, deliver, and acknowledge for record, in due form of law, the said mortgage, and to sign and seal the said bonds, and the treasurer to sign by the engraved facsimile of his signature the coupons thereof, and the president to deliver the said coupon bonds so perfected to the said trustee ; and further, "6. Resolved, That one hundred and fifty thousand dollars in amount of the said bonds shall at once be issued by the said trustee upon the order of the Board of Directors of this company, the said amount being needed to pay for the cost of the said water works; but no part of the remaining fifty thousand dollars of the said bonds shall be issued except for the pur- pose of paying for extensions or betterments hereafter to be made by the said company, and to the amount necessary for such object, and then only upon an order on the said trustee by the Board of Directors, giving the price of such extension or betterment, and accompanied by their certificate to the effect that such extension or betterment has been made, and that the revenue to the said Water Company from the said extension or better- ment amounts to at least eight per centum per annum upon the amount of bonds so to be issued." AND ix PURSUANCE of the said resolutions there have been prepared and made ready for issue two hundred bonds, numbered consecutively from one to two hundred, both numbers inclusive, all being equal and alike, save as to numbers, and of the denomination of five hundred dollars each, dated September 1, 1885, and maturing September 1, 1915, with sixty coupons attached to each; and the said coupons consecutively and correspondingly numbered and matured, the first maturing March 1, 1886, the sixtieth September 1, 1915, and the intermediate coupons following the first in regular intervals of six months ; coupons and principal being made payable at Trust Company, in the city of , which bonds and coupons are in form as follows: 18 Corporation Accounting and Management. $500.00. UNITED STATES OF AMERICA. No. STATE OF THE WATER COMPANY, OF FIRST MORTGAGE BOND. THE WATER COMPANY, OF , a corporation duly organized and existing under the laws of the state of , f or value received hereby promises to pay to Trust Company, or bearer, the sum of five hundred dollars, lawful money of the United States of America, on the first day of September in the year one thousand nine hundred and fifteen, together with interest on said sum, from the date hereof, at the rate of six per centum per annum, lawful money of the United States of America, payable semi-annually on the first days of March and September in each year, at Trust Company, in the city of , on presentation and surrender of the coupons hereto attached, as they severally become due. This bond is one of a series of two hundred, of five hundred dollars each, numbered consecutively from one to two hundred, both numbers inclusive, and of a series of one hundred, of one thousand dollars each, numbered consecu- tively from two hundred and one to three hundred, both numbers inclusive, and amounting in the aggregate to two hundred thousand dollars, all being of like date and tenor, except as to amount, and all equally secured, to be paid by first mortgage upon the water works of the said Water Company, of .in and near the city of , in the state of , together with all its lands, machinery, pipes, outfit, rights, liberties, privileges, and franchises, now held or hereafter to be acquired by it, with all its income and profits; executed by it to Trust Company, trustee, bearing even date herewith, and duly acknowledged and recorded according to law, in the office of the Register of Deeds of the County of , in the state of This bond shall not become obligatory until authenticated by the signa- ture of said trustee to the certificate hereto appended ; and it is redeemable in advance of its maturity, on and after the first day of September, 1895, at such a time as the said Water Company, of , at its option may elect. IN WITNESS WHEREOF, the said Water Company, of , has caused this instrument to be sealed with its cor- porate seal, and to be signed by its president and secretary, and the coupons hereto attached to be signed by the engraved facsimile of the signature of its treasurer, at aforesaid, this first day of September, 1885. THE WATER COMPANY, OF , by ' its President, and by its Secretary. Securities. 19 This certifies that this bond is one of the bonds mentioned in the mortgage within referred to. THE TRUST COMPANY, by its President. [$15.] , - , The Water Company, of , will pay to bearer fifteen dollars on surrender of this coupon at Trust Company in the city of , for semi- annual interest on first mortgage bond No Treasurer. AND IN FURTHER PURSUANCE of the said resolutions there have been also prepared and made ready for issue one hundred bonds, numbered consecu- tively from two hundred and one to three hundred, both numbers inclusive, all being equal and alike save as to numbers, and of the denomination of one thousand dollars each, dated September 1, 1885, and maturing Sep- tember 1, 1915, with sixty coupons attached to each, and the said coupons consecutively and correspondingly numbered and matured, the first matur- ing March 1, 1886, the sixtieth' September 1, 1915, and the intermediate coupons following the first in regular intervals of six months, coupons and principal being made payable at Trust Company in the city of , which bonds and coupons are in form as follows : $1,000.00 UNITED STATES OF AMERICA. No STATE OF THE WATER COMPANY, OF FIRST MORTGAGE BOND. THE WATER COMPANY, OF , a cor- poration duly organized and existing under the laws of the state of , f or value received, hereby promises to pay to Trust Company, or bearer, the sum of one thousand dollars, lawful money of the United States of America, on the first day of September, in the year one thousand nine hundred and fifteen, together with interest on said sum, from the date hereof, at the rate of six per centum per annum, lawful money of the United States of America, payable semi-annually on the first days of March and September in each year, at Trust Company in the city of , on presentation and surrender of the coupons hereto attached, as they severally become due. This bond is one of a series of two hundred, of five hundred dollars each, numbered consecutively from one to two hundred, both numbers inclusive, and of a series of one hundred, of one thousand dollars each, numbered consecutively from two 20 Corporation Accounting and Management. hundred and one to three hundred, both numbers inclusive, and amounting in the aggregate to two hundred thousand dollars; all being of like date and tenor, except as to amount, and all equally secured to be paid by first mortgage upon the water works of the said Water Com- pany, of , in and near the city of , in the state of , together with all its lands, machinery, pipes, outfit, rights, liberties, privileges and franchises, now held or hereafter to be acquired by it, with all its income and profits; executed by it to Trust Company, trustee, bearing even date herewith, and duly acknowledged and recorded according to law, in the office of the register of deeds of the county of in the state of This bond shall not become obligatory until authenticated by the signa- ture of said trustee to the certificate hereto appended; and it is redeem- able in advance of its maturity, on and after the first day of September, 1895, at such a time as the said Water Company, of , at its option may elect. IN WITNESS WHEREOF, the said Water Company, of , has caused this instrument to be sealed with its cor- porate seal, and to be signed by its president and secretary, and the coupons hereto attached to be signed by the engraved facsimile of the signature of its treasurer at aforesaid, this first day of September, 1885. THE WATER COMPANY, OF , by , its President, and by , its Secretary. This certifies that this bond is one of the bonds mentioned in the mortgage within referred to. THE TRUST COMPANY, by ! , its President. [$30.] , - , The W T ater Company, of , will pay to bearer thirty dollars on surrender of this coupon at Trust Company in the city of , for semi-annual interest on first mortgage bond No , Treasurer. Now, THEREFORE, for and in consideration of the premises, and of the sum of one dollar, cash in hand, paid to the party of the first part by the party of the second part, before the sealing and delivery hereof, the receipt Securities 21 whereof is hereby acknowledged, and in order to secure the payment of said bonds and coupons according to their tenor, the party of the first part has granted, bargained and sold, and does by these presents mortgage and warrant to the party of the second part, as trustee, and its successors and assigns, all rights, powers, privileges, and franchises granted to or con- ferred upon the party of the first part, by the state of and the city of , or which may hereafter be so granted and con- ferred ; together with the water works of the party of the first part, in and near the city of , in county, in the state of , together with all its lands, machinery, pipes, outfit, rights, liberties, privileges, and franchises, now held or hereafter to be acquired by it, with all its income and profits, including any revenues derived by the party of the first part from whatsoever source; and all its contracts, and all its muniments of title to real and personal estate. To HAVE AND TO HOLD the same to the party of the second part, its successors and assigns forever; in trust, nevertheless, upon the following conditions, and for the following uses and purposes, to wit: First. So long as no default shall be made in the payment of the prin- cipal or the interest of the said bonds according to their tenor and effect, and so long as the conditions of this deed shall be performed, the party of the first part, its successors or assigns, shall be permitted to retain the possession and control of the said mortgaged property, and of its income and profits, except as hereinafter provided. But the party of the first part agrees to pay all taxes, assessments and levies which shall from time to time be legally imposed, assessed, or levied upon the property and franchises hereby conveyed and attempted to be conveyed, the lien whereof might be held superior to the lien of these presents, so that the priority of these presents shall at all times be duly maintained and preserved; and to take care of and preserve the said property, and to do on demand of the party of the second part, its successors and assigns, all acts necessary or proper to keep valid the lien hereby created and intended to be created; and at any future time, and as often as it may be necessary, to execute on demand of the party of the second part, its successors or assigns, all such other assurances, deeds, mortgages' and other instruments of writing in due form and effect, as may be proper to the better carrying out of the true intent and meaning of these presents; and especially, and at its own cost, to do all things that may reasonably be required by the party of the second part, its successors and assigns, to keep valid the lien hereby intended to be created upon after acquired property. Secondly. The party of the first part further covenants for itself, its successors and assigns, to and with the party of the second part, its suc- cessors and assigns, that, in addition to the payment of the interest, and in order to provide a sinking fund for the payment and retirement of the 22 Corporation Accounting and Management. principal of the said bonds, beginning with the receipts of the party of the first part, of the second day of September, in the year one thousand eight hundred and ninety, and continuing during the existence of any of the said mortgage debt, ten per centum of the gross water rates, except the revenue from public fire hydrants, received by Water Company, of , shall be paid over to the said trustee on the first days of March and September in each and every year, to' be applied to the redemption and retirement of the principal of the said bonds. The said trustee shall use the said fund in redeeming bonds which the said Water Company, of , may call for redemption in advance of their maturity, and if any surplus of sinking fund money shall remain after exhausting such calls, the said trustee shall apply such surplus to the redemption and retirement of the principal of any other of the said first mortgage bonds of the party of the first part, by purchase of such bonds in the open market, provided that such purchases be made at a rate not exceeding ten per centum premium and accrued interest. And such of the said money as the said trustee shall not be able to use in the manner aforesaid shall be invested by it for the purpose of earning interest for the benefit of the said sinking fund. Thirdly. In the event that the party of the first part shall fail for the space of ninety days to pay the semi-annual interest as and when the same may become due, on the said bonds, or any of them, after presentation and demand of the payment of such coupons, or shall fail for ninety days to pay the said installments of sinking fund, as and when the same may become due, or any of them, after demand of them, or any of them, then and in that event the whole of the principal of all the outstanding bonds hereby secured shall, at the option of the holders of such bonds, respectively, become due and be payable, and the lien hereby created may be enforced for the whole debt; and the party of the second part and its successors shall on the written request of the holders of a majority of said bonds then out- standing take possession of the property and franchises herein mortgaged or covenanted so to be ; and by itself and agents or by a receiver of a court appointed in a suit for the enforcement of this lien, or a suit for such posses- sion, hold, use, and operate the same for the equal benefit of the holders of all of the said bonds, and receive the income and profits therefrom; or such trustee may in such case, by the judgment of a court having jurisdic- tion, have all the mortgaged property and franchises sold and conveyed. And at any sale of any of the said mortgaged property and franchises, made under or by virtue of these presents, the said trustee may, at the request of a majority in interest of the outstanding bonds, bid and purchase, in person or by attorney, in behalf of the holders of the outstanding bonds herein and hereby secured. What may be received by the trustee or receiver from income and profits and the proceeds of sale shall be applied as follows : 1. To the expenses incurred in and about the proceedings, the execution of this trust, the preservation and operation of said property, the reasonable Securities. 23 compensation to the said trustee, or its successors, and the agent and attorney of said trustee, or its successors, all taxes, assessments, and levies on said property, all damages to which the party of the second part, or its suc- cessors, may become liable by reason of the management of said property, and any other proper charge or expense, not caused by the gross negligence or willful misconduct of the party of the second part or its successors. 2. To the payment of the outstanding bonds and the interest thereon, herein and hereby secured, ratably and without discrimination or preference. 3. Any surplus shall be returned to the party of the first part. Fourthly. If the party of the first part shall at any time before a sale of the mortgaged property and before the first day of September, in the year 1915, pay all the interest then due on said bonds, and all installments then due ^on account of the said sinking fund, and all expenses, compen- sations, taxes, assessments, levies, and damages, then and in that case the bonds shall not be regarded as due, and there shall be no sale of the said property for past failures. Fifthly. The party of the second part, as trustee or otherwise, shall be under no obligation to recognize any person or persons, firm or corporation, as holder or holders, owner or owners, of one or more of the bonds secured hereby, or to do or refrain from doing any act pursuant to the request or de- mand of any person or persons, firm or corporation, professing or claiming to be such holder or owner, until such supposed holder or holders shall produce the said bonds and deposit the same with the trustee, and shall indemnify and save harmless the trustee, to its full satisfaction, from any and all costs and expenses, outlays and counsel fees and other reasonable disburse- ments for which it may become liable or responsible on proceeding to carry out such request or demand. The right of action under this indenture is vested exclusively in the trustee, and under no circumstances shall any bondholder or any number of bondholders have any right to institute an action or other proceeding on or under this indenture for the purpose of enforcing any remedy herein and hereby provided, except in case of refusal on the part of the trustee to perform any duty imposed on it by this agree- ment ; and all actions and proceedings for the purpose of enforcing the pro- visions of this indenture shall be instituted and conducted by the trustee, according to its sound discretion; but the trustee shall be under no obliga- tion to institute any such suit or to take any proceedings under this indenture until it shall be indemnified to its satisfaction for all expenses and costs of every kind, and also for all possible claims for damages. Should any suit or other proceeding be brought against the trustee by reason of any matter or thing connected with the trusts hereby created, or by reason of its being such trustee, it shall be under no obligation to enter any appearance by counsel, or in any way to appear in and defend the said suit or other pro- ceeding, until indemnified to its satisfaction for so doing; but it may never- 24 Corporation Accounting and Management. theless appear and defend the same without indemnity if it shall elect so to do, and in such case it shall be compensated therefor from the trust fund. In case at any time it shall be necessary and proper for the trustee to make any investigation respecting any facts preparatory to taking or not taking any action, or doing or not doing any thing as such trustee, the certificate of the party of the first part, under its corporate seal, attested by the signature of its president and the affidavit of one or more directors, shall be sufficient evidence of such fact to protect the trustee in any action that it may take by reason of the supposed existence of such fact. It shall be no part of the duty of the party of the second part to see to the recording of this indenture as a mortgage or conveyance of real estate, or to the filing thereof as a chattel mortgage, or renewing such mortgage, or to do any other act which may be suitable and proper to be done for the continuing of the lien of this indenture, or for giving notice of the existence of such lien; nor shall it be any part of its duty to effect insurance against fire or other damage on any of the mortgaged property, or to renew any policies of insurance. The trustee shall only be responsible for reasonable diligence in the performance of the trust, and shall not be answerable in any case for the act or default of any agent, attorney or employee selected with reasonable discretion. The trustee shall be entitled to be reimbursed all proper outlays of every sort or nature by it incurred in the discharge of its trust, and to receive a reasonable and proper compensation for any duties that it may at any time perform in the discharge of the same; and all such fees, commissions, compensation, and disbursements shall constitute a lien on the mortgaged property and premises. The recitals herein con- tained are made on behalf of the party of the first part, and the party of the second part assumes no responsibility as to the correctness of any statement therein containe'd. Sixthly. The party of the first part shall indemnify and hold harmless the party of the second part and its successors against any loss or damage which it may incur or to which it may be subjected by reason of accepting or executing this trust, not caused by its gross negligence or willful mis- conduct. Seventhly. The dissolution, death, incapacity, insolvency, refusal to act or resignation of any trustee under this mortgage shall produce a vacancy in the trust hereby created, and in the event of such vacancy it shall be lawful for the judge of the Circuit Court of county, in the state of , during term time or in vacation, on the peti- tion of the holders of not les*s than a majority of the said bonds then out- standing, to appoint from time to time a trustee or trustees to fill the vacancy so produced; and the trustee or trustees so appointed shall be clothed with all the rights, powers, and privileges conferred by this mortgage upon the party of the second part. Securities. 25 Eighthly. And as further security for the payment of the said interest and principal, and of the said sinking fund installments, the party of the first part has assigned, transferred, and set over, and by these presents assigns, transfers, and sets over, to the party of the second part and its suc- cessors all its claims and demands during the existence of any part of this mortgage debt, against the said city of for the rent of fire hydrants under the ordinance hereinbefore mentioned, and under any additional water-works ordinances of the mayor and common council of the city of , including the right of the party of the first part to the special fund out of which such demands are payable; and the party of the first part hereby irrevocably constitutes and appoints the said trustee and its successors, its agent to receive and receipt for all sums of money so accruing from the said city of for the rent of fire hydrants during the existence of any part of this mortgage debt; it to apply a suffi- ciency to the payment of the interest on the outstanding bonds as such interest matures, and to return any surplus on hand after paying or pro- viding for all matured coupons, to the party of the first part on or about the first days of April and October of each and every year. Ninthly. And if the party of the first part shall well and truly pay or cause to be paid the interest on sjdd bonds, and each of them, as the install- ments of said interest shall become due, and the said sinking fund install- ments, as they shall become due, and the principal of said bonds, as it shall become due, and shall comply with all its other obligations, according to the true intent and meaning of these presents, then and in that event the estate, right, title, and interest of the party of the second part and its successors in the trusts hereby created shall cease and determine ; otherwise the same shall be and remain hi full force and virtue. Tenihly. And it is expressly understood and agreed that the party of the first part has the right at its option to call and redeem and cause to be redeemed any or all of the said bonds, at par and accrued interest, in advance of maturity, on and after the first day of September, 1895, in such hist ali- ments and at such times as the party of the first part at its option may from time to time elect. Ix WITNESS WHEREOF, The Water Company, of , party of the first part, has on this first day of September in the year one thousand eight hundred and eighty-five, sealed this mortgage with its corporate seal, and has caused this mortgage to be signed by its president and secretary for and in behalf of the party of the first part; and The Trust Company, the party of the second part, has sealed the same and caused it to be signed by its president, to attest its acceptance of the trusts conferred upon it by the foregoing mortgage. THE WATER COMPANY, OF , by , its President, [SEAL] and by , its Secretary. 26 Corporation Accounting and Management, Signed, sealed, and delivered by The Water Company, of , in the presence of : THE TRUST COMPANY, [SEAL] by , its President. Attest: , its Secretary. Signed, sealed, and delivered by The Trust Company, in the presence of: STATE OF , County of BE IT REMEMBERED, That on this first day of September, in the year of our Lord one thousand eight hundred and eighty-five, in the county and state aforesaid, before me, , a notary public duly commissioned in and for the county and state aforesaid, came , who is personally known to me to be the same person who executed the foregoing instrument as president of Water Company, of , named therein, and he duly acknowledged the execution of the same, and that the said instrument was the act and deed of the said corporation. And the said , being by rne duly sworn, did depose and say : That he resides in the city of , in the county of , in the state of , and is the president of The Water Company, of , the corporation described in and which executed the foregoing instrument; that the seal thereto affixed is the corporate seal of said company, and that it was so affixed by its authority. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my notarial seal, the said first day of September, 1885. , Notary Public. [SEAL] Securities. 27 STATE OF County of BE IT REMEMBERED, That on this third day of September, in the year of our Lord one thousand eight hundred and eighty-five, hi the county and state aforesaid, before me, , a notary public duly com- missioned in and for the county and state aforesaid, came , who is personally known to me to be the same person who executed the foregoing instrument as secretary of The Water Company, of , named therein, and he duly acknowledged the execution of the same, and that the said instrument was the act and deed of the said corporation; and the said , being by me duly sworn, did depose and say : That he resides in the city of , in the county of , in the state of , and is the secretary of The Water Company, of , the corporation described in and which executed the fore- going instrument. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my notarial seal the said third day of September, 1885. Notary Public. PART III. WATER WORKS. On the commencement of business the corporation generally issues a pamphlet or flyer, embodying their rates, rules, and regu- lations, a copy of which is at the disposal of all, and at the same time opens what is termed an Application Book. (Form 106) (Form of Application Book.) BOSTON, MASS., 190 . CONSUMER'S WATER COMPANY. The undersigned hereby makes application to the aforesaid company for a supply of water at premises, located at and occupied by for purposes only, and agrees to pay for same in accordance with the rates, rules, and regulations of said company, now or hereafter in force; and further agrees that the said company may enter upon the premises or any lands owned by or in which has a right, for laying all pipes that may be necessary for such supply, and that said company may inspect and repair such pipes at any time when occasion requires. (Signature) This is the authority or contract under which the water- works superintendent makes the service connection. SERVICE CARD. When the service-pipe connection is completed, the superin- tendent makes out a " service card," showing the service number, date ordered put in, house number, street, name of customer, size of the connection, kind and length of pipe from main to line, line to stop and waste, with shut-offs, etc., thereon; and on the back of the card draws a sketch or diagram of the connection. If desired, the data showing the connection can be plotted on a set of plans showing the system of works and connections. Water Works. 29 If company charges customer for tapping distribution pipe, or for the pipe from same to his property line, bill can be made direct from this card and proper record thereof made in the cus- tomer's register hereinafter described, after which the card can be filed. (Form B) CONSUMER'S WATER COMPANY. SERVICE CARD. Xo BOSTON, MASS., 1905. Ordered put in. Xame Location House Xo . Kind of Pipe inch pipe From Main to Line feet Line Curb Curb Stop and Waste N -top and Wastes Xo. Tees Xo. Elbows Xo. Crosses Xo. Unions Other Fittings Total Length Feet Remarks : ... Approved by 1905. Inspector. (See sketch on back showing connection.) PLUMBER'S CARD. After the plumber has installed the fixtures, he makes a return thereof on a " plumber's card," showing the date, service number, name of customer, purposes for which supply is to be used, and the number and kind of fixtures connected, either on the inside or outside of the premises, transmitting same to the company whose representative makes an inspection of same, and if found 30 Corporation Accounting and Management. satisfactory, countersigns the card. The fixtures connected with the service can then be entered in the inspection part of the register and card filed. (Form C) Service No... CONSUMER'S WATER COMPANY. PLUMBER'S CARD. BOSTON, MASS. , 1905. I have connected Service No this day, House No Street. Owned by Occupied by For purposes as below. KIND NUMBER 1 : Rooms in House ,0 OS a ^ i Families Supplied 1st Faucet Additional Faucets Bath Tubs Water Closets Urinals Laundry Tubs Hose Fountains Horses . 1 ; o> : A : WATER, TAP, AND SERVICE PIPE BILLS. All bills for water, taps, and service pipes are first entered in the register. In order to avoid confusion and to expedite posting, bills for metered water, unmetered water, or fixture rates, service pipes and taps should be printed on paper of different colors. Bills are made with stub attachments, the stubs being retained by the collector as his memoranda for moneys received. Water Works. 31 (Form D) (Form of Meter Bill.) % CONSUMER'S WATER COMPANY. Service No BOSTON, MASS., 1905. M DR. To Water Rent from to 1905. Present meter reading cu. ft. Last . cu. ft. cu. ft @ per M, Received Payment, Collector. (Bills for metered water are due and payable on the first day of each quarter.) DO NOT DETACH STUB. Service No. . M Meter Rates From To . Amount, $ . Discount, $. Balance Due, $ DO NOT DETACH STUB. (Form E) (Form of Fixture Bill.) (Bring this bill with you and do not detach Stub.) CONSUMER'S WATER COMPANY. Service No BOSTON, MASS., 1905. M DR. To Water Rates for year ending 1905: 1st Faucet, $ Add 1 Faucets, Bath Tubs, Water Closets, Set Basins, Set Tubs, Hose, Sprinklers, Fountains, Horses, Cows, Greenhouses, Total, Received Payment, Collector. (Over) See copy Rates, Rules, and Regulations. DO NOT DETACH STUB. Service No M Water Rates for Year ending 1905. Amount, $ . . . Abatement, $. Balance Due,*.... Paid when, DO NOT DETACH STUB. 32 Corporation Accounting and Management. . CQ DO NOT DETACH STU Service No M 1 1 I ^ 1 8 03 5 T3 -f 1 5^1 wiicii, .%..., DO NOT DETACH STU] O & | ^ & M g : a 1 8 ? i s &< cc M 30 3 ^ | 1 . H g .g (g) 1 ^ i % i 1 N -(-2 g 1 W PQ P j 1 1 | OQ CH fli F "S ^ 525 "^ -*^ O 8 1 ^ ^J* ***^ F ^J S ^> c* ^ r* ^ ^* J "S 3 *i or -^ ^j 'JH GQ O M : U : a ^ Cu ! -5 43 G fc H I H H 1 8 Water Works. COLLECTOR'S REPORT. 33 The collector makes a report to the treasurer or other officer either daily, weekly, or monthly, as the occasion or custom re- quires, on a printed form arranged in a columnar manner, showing the number of service, name of customer, amounts received for water (meter and fixture basis separately), taps, service pipes, meter rentals, miscellaneous, and date when paid. The total of this report should agree with the total of the amounts as indicated on the stubs from which he detached the bills. When transmitting cash or check to the treasurer for the amount thereof, with stubs attached, he receives a voucher signed by the treasurer which is made detachable from the report by a perforated line. (Form G) Collector's Report (Daily) November 8, 1905 NO. OF SERVICE NAME OF CUSTOMER DATE OF PAYMENT FIXTURES Al rcR SERVICE METE) MISCE' L TOTAL TOTALS Received from John Jones. Collector $ per hi$ report of with Stubs attached TREASURER 34 Corporation Accounting and Management. TREASURER'S STATEMENT. Should the collections be made direct by the treasurer, he can make out a " statement of collections " on a form similar to Form H and attach the stubs thereto, posting payments to the respective customers' accounts in the registers hereinafter men- tioned. The totals of the columns on these statements, viz., metered water, fixture rates, service pipes, taps, etc., should also be posted to the debit side of his cash account under their respective columns, either daily, weekly, or monthly, as the occa- sion or custom requires, after which the statements can be filed. In a large works these statements should be written up and posted daily. < Water Works. 35 CONTROLLING METHOD. This method is arranged by the use of a " controlling account " : At the beginning of predetermined periods to debit customer's account in the journal with the total amounts as shown by the respective registers for water, taps, service pipes, etc., and credit- ing these accounts (water, taps, service pipes, etc.) in said journal, posting same to the ledger accounts, and crediting customer's accounts and debiting cash in the main ledger when payments are made ; also to make proper entries or allowances for all abate- ments, rebates, outstanding accounts, etc., at the end of the fixed periods. NOTE. For Customer's Registers see Part IX. HOUSE-TO-HOUSE INSPECTION AND METER BOOKS. The house-to-house inspection book is arranged in a columnar manner, with columns for service number, date of inspection, name of customer, street, faucets, additional faucets, bath tubs, additional bath tubs, set tubs, water closets, hoppers, urinals, hose, fountains, horses, head of cattle, horse-power boiler, fans, rooms, valuation, frontage, etc., depending entirely upon the method of rating adopted by the company, with end column for remarks. This book can be made to run for any number of years. For a large city it would be desirable to have one or more of these books allotted to each section or ward. In case there is no change in either the fixtures or name of cus- tomer, no entry or transcript is required to be made in the inspec- tion part of the register. In order to facilitate the work of inspection and expedite post- ing, these books should be arranged by streets or routes. They can be made up in bound book form, or on the loose-leaf system, as seems most desirable. 36 Corporation Accounting and Management. 1 3 M 30V1NOWJ "o * "^ 5 If "o h- Q asuadx^ s,BMaua a S ?UB M j m 2 ^onj}.suoo 3 <5 II sj Bday sauB|BS u. H O O v 2 OQ i \ > Q. E 3 c Ctf o - , *^ CO ^ 3 O 8 U m -- -i_i C > o si? ctf (3 DO "S " c. ; >? "Z. 5 5 o o. "fl 13 Q_ ^M E E o 'o ^ 3 ctf c o" _c <3 i CO ><- o 4 (D m u "O c 6 c ^ d i: c tl Q 6 Z JC JO 1 f 13 M a; y E o 1 a c c L. ;isodaQ ao luauu/Bj ao; LL * f asjopua puB p|oj 'qoBiap ;ou og Water Works. 53 CLASSIFICATION OF REVENUE, OPERATION AND MAINTE- NANCE, FIXED CHARGES AND CONSTRUCTION. REVENUE OR INCOME. (A) Water. (B) Meter Rentals. (C) Service Pipes. (D) Taps. Account (A). To include all receipts for metered water, unmetered water, or rates on a fixture, valuation, room, frontage, or other basis; public hydrant rental or service, for the payment of which the city or town is responsible; private hydrants, rental of hydrants on private property, and flat rates for automatic sprinklers or private fire-service pipes ; * flushing streets or sewers ; street sprinkling; sale of all water, not otherwise accounted, to boats by the barrel, tank, or meter; to contractors for temporary use of water, where it would not pay to install a meter; and transient customers, such as circuses, etc. Account (B). To include all receipts for rent of meters of any kind, or any other apparatus by which water is measured which are furnished by the company. Account (C). To include all receipts for sale of service pipe and fittings and labor in laying and connecting same with the system. Account (D). To include all receipts for tapping mains, should the works charge customer therefor. * In manufacturing centers where there are a great many private fire-service pipes and automatic sprinklers, it would be advisable to make a separate subdivision. 54 Corporation Accounting and Management. EXPENDITURES FOR OPERATION AND MAINTENANCE. (E) Expense. (F) Repairs and Renewals. (G) Salaries and Wages. (H) Fuel. Account (E). To include all charges for oil, waste, freight, and cartage thereon; rent and care of offices; insurance of real estate and other prop- erty against fire, steam boiler, accident, and liability insurance; legal expenses; office supplies, such as account books, printing, stationery, renewals of office furniture, etc. Account (F). To include all charges for repairs and renewals of pumping machinery, mains, service pipes, meters, reservoirs, standpipes, including repainting, etc., filters, including cleaning and washing same, pumping station and grounds, etc. Account (G). . To include all wages of engineers, firemen, and assistants ; super- intendent and assistants at filter; salaries of office force, super- intendent of works and executive officers. Account (H). To include all charges for coal, wood, or other fuel, including the handling of same and freight and cartage thereon, delivered to the point of use. Water Works. 55 FIXED CHARGES. (I) Interest and Discount. (J) Taxes. Account (I). To include interest on bonds and other interest-bearing securi- ties; also interest and discount on notes and- open accounts,* excluding those the proceeds of which are applied to construction. Account (J). To include all taxes of whatever nature assessed against the property.f * Interest on notes and open accounts is not usually classed with fixed charges, but is included herein as a matter of convenience in accounting. If it is desired to differentiate, another account could be opened, such as " Interest and Discount on Floating Debt, etc.," or " Miscellaneous Interest." t Some eminent authorities do not include " Taxes " under the head of fixed charges, but although variable, they are a prior lien to the interest on mortgage bonds and even to charges for operation and maintenance. They are fixed in the sense of the familiar quotation, " Nothing is certain but death and taxes." 56 Corporation Accounting and Management. CONSTRUCTION. (K) Extensions of Mains. (L) Service Pipes. (M) Meters. (N) Tools. (0) Miscellaneous. Account (K). To include the cost of all pipes, gates, hydrants, special cast- ings, lead, yarn, packing, fuel (for melting lead), freight and cart- age thereon, trenching, paving, and labor in extending the pipe system, together with the cost of supervision. Account (L). To include the cost of all new service pipes and fittings, with freight and cartage thereon, and labor in laying and connecting services with the system. Account (M). To include the cost of all meters, meter boxes, extension dials, freight and cartage thereon, and labor in connecting same. Account (N). To include the first cost of all tools and freight and cartage thereon. Account (0). To include the cost of all other additions to or extensions of the plant not otherwise enumerated under the head of construction, which occurs occasionally, such as the installation of pumping machinery, pipe bridge, etc., which are not renewals or replace- ments. 57 FORM OF CASH BOOK IF ACCOUNTS ARE KEPT BY THE CONTROLLING METHOD. OTHER LEDGER ACCOUNTS P < CUSTOMER ACCOUNT ^ o E | CO S o - ill Credit Side. OTHER LEDGER ACCOUNT! ACCOUNTS PAYABLE CO 5 - u. B 58 Corporation Accounting and Management. The blank ruled columns on debit side are for active accounts which do not go through the " customer's registers," and for which it may be desired to open ledger accounts; those on the credit side for active accounts which do not go through the " accounts payable or distribution book " for which it may be desired to open ledger accounts. The " other ledger accounts " column is explained under Cash Book, Journal and Ledger, Part III. AUXILIARY BOOKS. These books relate principally to the management and opera- tion of a plant and have only an indirect bearing on the revenues, assets, and liabilities ; nevertheless they are important as a means of ready reference, as they serve to keep down the cost of opera- tion, and should be kept by all quasi-public corporations. (A) CONSTRUCTION RECORD BOOK. This book, as its name implies, shows size, kind, lengths, and locations of all pipes, hydrants, valves, valve boxes, meters, etc., which are buried in the ground to a great extent; and details and sketches of other structures, such as pumping stations, reservoirs, standpipes, filters, etc., culled from the original specifications, plans, or contract for building the same. It contains all information which a general plan of the works should furnish, but in addition gives the details of all parts of the construction. It is assumed, however, that all works would at least have a general plan showing the pipe system and connec- tions. Information of this character should be a matter of record, for in case of absence, disability, 'or the sudden death of a manager or superintendent of a plant, who alone was the possessor of this data, emergencies might arise, such as a break in the mains, which might cause loss by flood alone running into the thousands of dollars. It serves also as a record of the invisible property. Simply as a means of ready reference even to one conversant with the entire system, it will economize in time and labor, and at times avoid large financial outlay to properly locate pipes and other structures which have been buried in the ground for years. Water Works. 59 For a large city it would be advisable to have a construction record book, covering the whole city, and in addition thereto sectional or divisional construction record books, each superin- tendent of a division or section being furnished with a copy of the construction records pertaining to his division. 5 B EMARKS z I 1 5 1 2 | a "^-v^ < I -X e* i o> 11 ^B S i o J. 8 1 x i! c/) o m U Q. Q. 1 s 1 I 1 4 * _ X "1 5 ii I 1 1 3 i 1 1 J cc r* = hi \ 5 o i 3* =. X E i * n 8 1 = - 1 5 1 a g jj i H 2| | i - - U 51 I . i 3 c o 5 1 S H 2 - si i < S M X h X M 3 o u " i 1 z = * ?i i 5 i: 5 ^ 2 h i 5 i u : i s 5 00 X ! 2 * S M I "al E o la. 5 I MAIN ST. i TREMONT BOYL8TON | 1 ^. ^ X ' _ v_^-^_- 60 Corporation Accounting arid Management. W E u E UCTION 3 ll E h -l (O 0. ^ h o o? 1 I ' h U Z S Z Z U , 1 3 1 N O z S - i b. II E U 3 si Z Z p u - 1 n Water Works. 61 (B) GATE BOOK. This book is in the nature of a small sketch book, which can be carried in the pocket, showing the location of gates and hydrants by streets, also plugged branches, and is invaluable to a super- intendent, as it obviates the necessity of consulting the plans continuously. If more than one copy of the book is desired, the original sketch can be made on tracing cloth and blue-prints made therefrom at a small expense for any number of books. They should be indexed by streets. For a large works, gate books should be allotted to each division or section. L LJf 62 Corporation Accounting and Management. (C) PUMPING STATION RECORD BOOK. This is kept by the engineer or his assistant, which shows the time of pumping, number of revolutions of the pump, kind of coal and amount used, number of gallons of water pumped daily, pumping lift, etc. Computations from this data can be made which will show the amount of water pumped during the year, either by water or steam power, and whether the pump is performing duty equivalent to its rated efficiency. If not, there is a loss in delivery, which is commonly called " slip," and it would be advisable to have the pump tested and put in repair, thereby keeping down operation charges in reducing the amount of coal consumed, wear and tear on pumping machinery, and additional cost of extra engineering force. (D) FILTER RECORD BOOK. This book is kept by the operator at the filter plant, in a columnar manner, with columns for: day of month; duration of pumping; head on filters, before and after using; number of filters in use; water filtered in twenty-four hours; average rate of filtration per filter; amount of water used in washing filters; amount of alum used; ot'her chemicals; compartments cleaned; turbidity; tem- peratures, air and water; results of analyses, and column for remarks, under which can be entered such data as when filters were scraped, replenished, or washed, number of men employed, teams, etc. (E) METER TEST AND METER REPAIR BOOKS. These books are in the nature of records of the comparative efficiency and durability of the different kinds of meters on the market, and can be arranged in a columnar manner, showing the size and kind of meter, maker, head, openings or size of streams measured, discharge cubic feet, percentage of loss on rated effi- ciency, etc., with column of remarks, under which can be entered the conditions under which the test is made, for the meter test book. For meter repair book, columns for date set, maker, kind and size of meter, date repaired, with extended column for repairs and renewals, subdivided into columns for spindles, disks, casings, frost cases, bolts, etc., following with columns of cost and remarks. These books can be made up in bound form, loose leaves, or data kept on cards, as seems most desirable. Water Works. (F) DETAILS OF HEADINGS FOR AUXILIARY BOOKS. I flu Ou '3 3" 64 Corporation Accounting and Management. i g < z a GO < X z RIGHTS OF 1 ! i s 8 1 E ATION * M JBC 8 ^ 8 QQ H ^ * g i 1 o> -*- la SI a | 2 I ;1 & s. (2 ja 1 b S2 | "3 C LDINGS 1 li 1" 1 55 " i her sand < ^ U s_x :D CO r II 13 .a I 1 U ^H Q v.^^ f f Filter ^ "Z. UI UI O o tr o C5 CO co" or a. Q_ z E Q ^ ^_ Z w 0. UI cc "> CO u u. c " 1- co i "S 1 ^ ~ B UI C < s UI 2 z c "to 5 z _ i 1- c -^ (0 . D 2 c UI cc - a> c CO UI X CO z a> CO I- o i "to o CO O M UI c CO z bO " i_ UI _j 5~ X UI j| _J CO cc UI g UI (5 c c 0) UI > O 1 Q - z ft )> Total 6. Total from sale of gas From Residual Products: 7 Cok ] * ons ^ e ^ ec * r ^ c department . . kG > tons sold elsewhere . . -. . . . 8. Tar, gallons : . . . 9. Ammoniacal liquor 10. Total from residuals From Other Sources, viz.: 1 1 . Rent of meters 12. gas stoves and engines . . . . . -. . 13. gas lamps 14. Public lamps other than gas lamps Total income Balance to profit and loss (if deficit) . . . Total credits * Such items of income arising only from the manufacture and sale of gas as are not included above. 80 Corporation Accounting and Management. SCHEDULE BB. STATEMENT OF INCOME AND EXPENSES FOR THE YEAR ENDING JUNE 30, 190 . ELECTRIC. EXPENSES. For Manufacture: 1. Coal or other fuel, including all expenses of depositing at works $ 2.^ntalsfo r { 3. Oil and waste 4. Water " . . . . 5. Wages at station 6. Station repairs 7. Steam plant repairs 8. Electric plant repairs 9. Apparatus and machinery (station tools and appliances) For Distribution: 10. Wages for care of lights and meters, clerical labor in this department, and salary or commission of collectors 11. Repairs and renewals of lines 12. Repairs and renewals of meters, lamps, and motors 13. Distribution tools and appliances 14. Carbons 15. Incandescent lamps For Office Expenses and Management: 16. Directors' allowances 17. Salaries of officers 18. General salaries 19. Rent of offices, if separate from plant . . . 20. General office expenses For Miscellaneous Expenses: 21. Taxes. Town or city .... Corporation $ State commission 22. Insurance { Employer's 'liability! 23. Law expenses 24. Claims 25. Bad debts* ' . . 26. Incidental expenses, viz.: t a Other cost incidental to steam heating . 6 27. Current bought of Company, 28. Total expenses 29. Balance to profit and loss Total debits . Ratio of operating expenses to gross earnings .... * Only those included in Income statement, page 81. t To include only such items of expenses attending the manufacture and sale of ELECTRICITY as are not already given. Gas Works. 81 ELECTRIC. INCOME. 1. From commercial arc lights by contract . .$ $ Less discounts or rebates allowed . 2. From commercial incandescent lights by con- tract Less discounts or rebates allowed . . 3. From commercial arc and incandescent lights by meter Less discounts or rebates allowed . . 4. From public arc lights Less discounts or rebates allowed . . 5. public incandescent lights Less discounts or rebates allowed . . 6. electric power {%* Less discounts or rebates allowed . . . Total 7. Amount of current sold to other companies: Electric Light Co., kilowatts, > }) Total net from light and power From Other Sources, viz.: 8. Rent of fixtures 9. Rent of meters 10. Steam heating . . . 11.* Total credits Balance to profit and loss (if deficit) Total * Such items of income arising only from the electric light and power business as are not included above. 82 Corporation Accounting and Management. SCHEDULE C. PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDING JUNE 30, 190 . DEBIT. For balance from last account (if any), June 30, 1904 $ interest paid and accrued on bonds, notes, loans, and de- posits, to June 30, 1905 . dividends declared on stock, viz. : per cent, due per cent, due per cent, due per cent, due For depreciation : Gas plant Electric plant For other items, giving particulars, viz. : For amount carried to reserve fund depreciation fund total amount of debit balance (if surplus) Total debit .......... CREDIT. By balance from last account (it any), June 30, 1904 $ ,, balance of income as per item 28, Schedule B, gas business $ balance of income as per item 29, Schedule BB, electric business interest received on loans or deposits rents other items, giving particulars, viz.: Total amount at credit By balance (if deficit) Total credits $ SCHEDULE D. RESERVED FUND ACCOUNT CREDIT. 1. By balance of account June 30, 1904 $ 2. By income during the year from amount invested .... 3. By amount transferred 'from profit and loss account . . . DEBIT. 4. For * 5. Balance, June 30, 190 6. How is fund invested? * Any sums charged to this account during the year ending June 30, 1905, stating the purpose for which the same were used. Gas Works.- 83 SCHEDULE E. DEPRECIATION FUND ACCOUNT. CREDIT. By balance of account June 30, 1904 $ By amount transferred from profit and loss account $. DEBIT. For* $ For balance June 30, 1905 How is fund invested? * Any sums charged to this account during the year ending June 30, 1905, stating purpose for which used. 84 Corporation Accounting and Management. SCHEDULE F. BALANCE SHEET. ASSETS. From return of 1904. Real estate (gas) $ Machinery and manufacturing appliances (gas) . Street mains (gas) t Services (gas) ' Meters (gas) " Due for gas *..... Gas coal on hand Coke on hand Tar on hand Enrichers on hand Purifying materials on hand Other gas materials on hand Stoves on hand Gas fixtures on hand Real estate (electric) Steam plant (electric) Electric plant Electric lines Transformers Electric meters Arc lamps Patent rights Due for electric light and power * Fuel on hand (electric light) Carbons on hand Oil and waste on h.and Incandescent lamps on hand Globes on hand Other electric materials on hand Motors on hand Electric fixtures on hand Horses, wagons, etc Sundry accounts due the company Office furniture Cash on hand Notes receivable Investments (giving particulars thereof)! . . . Total assets as per books of the company Profit and loss balance (if deficit) Total debits * These items should include the amount of all bills for gas and electric light and power for the month or quarter ending June 30. t Including any real estate so held. Gas Works. 85 JUNE 30, 1905. LIABILITIES. From return of 1904. S Capital stock $ Bonds issued Coupon notes * Other notes payable * Unpaid bills Deposits by customers Unpaid dividends Interest due but not paid Interest accrued but not due Reserved fund Depreciation fund Amounts due from the company, not included above $ Total liabilities as per books of the company . $ Profit and loss balance (if surplus) $ Total credits $ * State whether secured by mortgage or not. GENERAL INFORMATION. GAS, Location of gas works, Area of land occupied, Number of retorts, benches of 1 each. benches of 2 each. benches of 3 each. viz. : benches of 4 each, benches of 5 each, benches of 6 each. benches of 7 each, benches of 8 each, benches of 9 each. Number of benches rebuilt during the last year, How long were such benches hi actual use? Average number of retorts employed from October to March, inclusive, Average number of retorts employed the remainder of the year, Description of purifiers, No. Length, Width, Depth, No. Length, Width, Depth, Materials used in purifiers, Total amount of lime used during the year, bushels. Quantity of gas purified per bushel of lime, Estimated total cost for the year of iron sponge used, $ Estimated total quantity of gas purified per bushel of iron sponge, Number of holders and their location, viz. : No. LOCATION * OPEN OR COVERED DIMENSIONS WORKING CAPACITY * If not " at works " give the distance therefrom. 86 Corporation Accounting and Management. GENERAL INFORMATION. Gas continued. Sizes of Street Mains, and lengths of each size in feet, viz. : SIZES, DIAMETERS TOTAL LENGTH IN FEET, JUNE 30, 1904 TAKEN UP SINCE LAID SINCE TOTAL LENGTH IN FEET, JUNE 30, 1905 1 inch, " H -"2 JJ 2 2-1 3 4 6 8 10 12 14 16 18 20 % ' 24 30 36 42 48 54 Totals, " Gas Works. 87 GENERAL INFORMATION. Gas continued. Estimated capacity of works 5 Af ff^lf ^ gaS ' P erdiem > d S as > ( Water gas, the year, Number of feet bought Number of feet of gas sold by meter during the year Number of feet of gas sold to other companies dur- ing the year Number of feet of gas supplied to public lamps during the year Number of feet of gas used at works and offices during the year Number of feet of gas used in the mills of the com- pany * during the year Number of feet of gas on hand June 30, 1905 . . Total Total Number of feet of gas unaccounted for during the year . . . Greatest output in 24 hours, with date of same Least output in 24 hours, with date of same Number of feet of gas sent out in the daytime during the year, Length and sizes of mains laid during the year for which con- tributions have been required from consumers, and amount of such contributions * This question will require an answer only from companies engaged in other manufactures. 88 Corporation Accounting and Management. GENERAL INFORMATION. Gas continued. Capacity of Meters and number of each size in use, viz. : SIZE. No. OF LIGHTS No. IN USE JUNE 30, 1904 REMOVED SINCE ADDED SINCE NUMBER IN USE JUNE 30, 1905 NUMBER METER L'xs JUNE 30, 1905 2 3 5 10 20 25 30 35 40 45 50 60 80 100 125 150 180 200 250 300 400 500 Totals, Gas Works. 89 GENERAL INFORMATION. Gas continued. Is any meter rent charged, and what is the rule governing such charge? Number and size of prepayment meters in use : 3Lts., 5Lts., 10 Us., 20 Us. Total, Number of gas stoves used by consumers during the year? Number of stoves leased by the company? Number of high candle power lamps used by consumers during the year? Number of such lamps leased by company? Rental price of same per lamp? Number of gas engines used by consumers during the year? Number of gas engines leased by company? Rental price of same? Usual day pressure on street mams, as indicated at works? Usual night pressure on street mains, as indicated at works? Average candle power of the gas, as determined by state inspector? Gross price per 1,000 feet at the close of the year? Are discounts allowed, and if so, how are they made? What changes have been made hi price or discounts during the year, and when made? Number of public gas lamps supplied at close of year? Price for public gas lamps? Estimated hourly consumption of each lamp, cubic feet. Estimated number of hours during the year that each lamp is lighted? Kind of burner principally used on public lamps? Number and kind of public lamps other than gas or electric lamps main- tained by the company? Kinds of coal carbonized (not including those for making water gas)? Proportions of each, if used together? Kind of gas coal used? What materials were used for enriching the coal gas? Amount of each per ton of coal carbonized? STATEMENT OF COAL GAS MATERIALS FOR YEAR ENDING JUNE 30, ipos. AVERAGE COST PER ON HAND JUNE 30, 1904 RECEIVED DURING THE YEAR CARBON- IZED DURING THE YEAR UN- ACCOUNTED FOR ON HAND JUNE 30, 1905 TON OF 2.240 LBS. OF EACH KIND USED AT THE WORKS Tons Tons Tons Tons Tons Enriching coals - Other gas coals Naphtha . . Gals. Gals. Gals. Gals. Gals. AVERAGE COST PER GALLON OF EACH KIND USED AT Other oils . . WORKS 90 Corporation Accounting and Management. GENERAL INFORMATION. Gas continued. Statement of Residual Products for the year ending June 30, 1905. ON HAND JUNE 30, 1904, ESTIMATED MADE DURING THE YEAR, ESTIMATED USED DURING THE YEAR, ESTIMATED SOLD DURING THE YEAR ON HAND JUNE 30, 1905, ESTIMATED Coke, tons Tar (coal gas), gallons. . Tar (water gas), gallons . Ammoniacal liquor, gallons Prices now obtained for residuals: Tar per gallon (coal gas), $ Tar per gallon (water gas), $ Coke, per bush. . . $ Ammoniacal liquor per gallon $ Average number of men employed, viz. : APRIL TO SEPTEMBER OCTOBER TO MARCH HOW EMPLOYED * * Whether foremen, stokers, yardmen, etc. Gas Works. GENERAL INFORMATION. Gas continued. 91 ONLY THOSE COMPANIES MAKING "WATER GAS" ARE TO ANSWER THE QUES- TIONS ON THIS PAGE. What patent process, if any, is used in the manufacture of gas? How long has such process been employed? Is said process used alone, or as an auxiliary to the making of coal gas? If used as an auxiliary, how often is it so used and how long each tune? At what point in the works is the gas so made mixed with the coal gas? Total amount of water gas made during the year? What kinds of fuel were used for generating the gas? What kinds of fuel were used in carburetting the gas (not to include generator fuel)? What kinds of fuel were used for generating the steam? STATEMENT OF WATER GAS MATERIALS FOR YEAR ENDING JUNE 30, 1905. 1 AVERAGE COST PER TON OF 2240 LBS. CARBON- OF EACH ON HAND RECEIV'D IZED UNAC- ON HAND KIND JUNE 30, DURING DURING COUNTED JUNE 30. USED AT 1904 THEEAR THE YEAR FOR 1905 THE WORKS Tons Tons Tons Tons Tons For generating the gas, coal , coke , carburetting coal coke , generating steam, coal coke jj )> AVERAGE COST PER G Y 1.1,0 N O7 E\CH KTV:> USR> AT THK WORKS Naphtha Gals. Gals. Gals. Gals. Gals. Other oils Fuel oil ... Dimensions of generator, superheater, ,, condenser or washer, Usual length of runs, Capacity of works per hour, as observed in actual use, 92 Corporation Accounting and Management. GENERAL INFORMATION. Gas, concluded. ONLY THOSE COMPANIES MAKING "OIL GAS" ARE TO ANSWER THE FIVE QUESTIONS FOLLOWING. What patent process, if any, is used in the manufacture of gas? How long has such process been employed? Kinds of coal or other fuel used? What percentage of the gas in the holder is atmospheric air? At what point in the works is the air mixed with the gas? ONLY THOSE COMPANIES MAKING "ACETYLENE" GAS ARE TO ANSWER THE QUESTIONS FOLLOWING. What type of generator is used in the manufacture of the gas? How long has such apparatus been employed by this company? QUANTITY OF CARBIDE USED DURIJSG THE YEAR. ON HAND JUNE 30, 1904 RECEIVED DURING THE YEAR USED DURING THE YEAR ON HAND JUNE 30, 1905 AVERAGE COST OF SAME PER LB. DELIVERED AT WORKS . Gas Works. 93 GENERAL INFORMATION. ELECTRIC LIGHT, Location of electric plant, Area of land, and size and material of buildings occupied, Are the same owned or leased by the company? Description of motive power : 11 11 II ii | 11 ii h Rated H< Powe of Kac Rated He Power Each i Usual Steam Pressure j No. of Revolutions per Minute 1 Diameter o C Sj w S fl ffi I 1=1 ffl K 1 *i i.l o"! S c. CO H co Q W H O E 11 g a S-s ^ j O K s cc a 3, i j j| TJ * 3 i II 94 Corporation Accounting and Management. GENERAL INFORMATION Electric Light, continued. Description of Dynamos : No. OF EACH KIND MAKER CAPACITY OF EACH IN KILO- WATTS IN LAMPS. AMPERES No. Igandle 1 Power Arc: Direct current, Arc: Alternating current, Incandescent : Direct current, Commercial system, Alternating current, Commercial system, Alternating current, Municipal incandes- cent system, Direct current, Municipal incandes- cent system, VOLTAGE CAPACITY OF EACH IN K. W. Power generators, Corporation Accounting and Management. GENERAL INFORMATION Electric Light, continued. DISTRIBUTION OVERHEAD SYSTEM. Description of the Arc Lines, Direct Current : 95 Amperes < w 1 CH d 5 K 00 h 1 6 UOl p aotg ms ere z < o fc e | OH d X 1 6 i Amperes & ^ o H ^3 CH d H < E 1 6 s < UOI P l ^*S re 3 uj ! 03 3 o PH s H i 1 s 2 o i sc o OD a s OH* d ^ c ! 1 s 8 g c3 o 6 CO 1 !| c ^ h F i * ; <(> ' c 2 RCUIT8 1-1 j 1 X 1 Q g . I o o3 'o 1 S z ^ bij"^ s i 14* i SI II 1 g o w ONTH -,- >i 8 4s X 1 o P . W C 2 4 ^ > o ^O 1 E P I 1 a s 1 III Schedule of prices for public arc lights, Corporation Accounting and Management. Ill GENERAL INFORMATION Electric Light, continued. Schedule of prices for public incandescent lights, Number of each size of public incandescent lamps renewed during the year, Schedule of prices for commercial arc lights, Schedule of prices for commercial incandescent lights, Schedule of prices for electric power, Is any meter rent charged? What is the rule governing such charge? What changes have been made during the year in prices for lights or power, and when made? What kinds of electric motors are used, and for what kinds of work are they employed? Is current furnished for light during the daytime? Is current furnished for operating street cars? Is current furnished for other power during the daytime? 112 Corporation Accounting and Management. GENERAL INFORMATION Electric Light, continued. STATEMENT OF EACH KIND OF COAL (OF 2,240 LBS. PER TON) OR OTHER FUEL AT STATION FOR YEAR ENDING JUNE 30, 1905. AVERAGE KIND OF FUEL ON HAND JUNE 30, 1904 RECEIVED DURING THE YEAR USED DURING THE YEAR 'UN- ACCOUNTED FOR ON HAND JUNE 30, 1905 COST PER TON OF EACH KIND USED AT THE WORKS Tons Tons Tons Tons Tons Does the company wire buildings? If so, on what terms? On what terms does the company furnish incandescent lamps and renewals of the same? Average number of men employed, viz.: NUMBER OF MEN HOW EMPLOYED Corporation Accounting and Management. 113 GENERAL INFORMATION Electric Light, continued. What additions, alterations or improvements have been made to or in the property of the company since the last return? In Gas Works: In Electric Works : What experiments or changes in methods of manufacture has the company made since its last return? In Gas Works: In Electric Works: What is the total amount charged to construction during the year for the following purposes? In Gas Works : Lands and buildings $ Machinery and appliances Mains Meters In Electric Works : Land and buildings Steam plant Electric plant Lines Transformers Meters Arc lamps Total 114 Corporation Accounting and Management. NAMES AND RESIDENCE OF OFFICERS. President, Vice-President, Manager, Superintendent, Treasurer, Clerk of the corporation, NAMES AND RESIDENCE OF DIRECTORS. COMMONWEALTH OF MASSACHUSETTS. ss. Then personally appeared President. Treasurer. Directors. 190 and severally made oath to the truth of the foregoing statement by them subscribed according to their best knowledge and belief. Justice of the Peace. Corporation Accounting and Management. 115 EXTRACTS FROM CHAPTER 121 OF THE REVISED LAWS. SECTION 5. Said board shall have the general supervision of all corpo- rations and companies which are engaged hi the manufacture and sale of gas or electricity for light or heat, and shall make all necessary examina- tions and inquiries and keep themselves informed as to the compliance of the several corporations and companies with the provisions of law. SECTION 29. Corporations and companies which are engaged in the manufacture and sale of gas or electricity for light or heat shall keep their books and accounts in a form to be prescribed by the board of gas and electric light commissioners, and the accounts shall be closed annually on the thirtieth day of June, so that a balance sheet of that date can be taken therefrom. Manufacturing companies in which the manufacture of gas is a minor portion of their business shall be required to keep accounts of the expenses and income of their gas business only. SECTION 30. Persons or corporations engaged in the manufacture or sale of gas or electric light shall keep such records of their work at their manu- facturing station, and in respect to their distributing plant, as the board of gas and electric light commissioners may from time to time require. Said records shall be in such form as the board may prescribe. SECTION 32. Each such gas or electric light corporation or company neg- lecting to make the annual return required by the preceding section shall, for the first fifteen days or portion thereof during which such neglect continues, forfeit five dollars a day ; for the second fifteen days or any portion thereof, ten dollars a day; and for each day thereafter not more than fifteen dollars a day. If any company unreasonably refuses or neglects to make such return, it shall, in addition thereto, forfeit not more than five hundred dollars for each offence. All forfeitures recovered under the provisions of this section shall be paid into the treasury of the commonwealth and applied to the payment of the expenses of the board. SECTION 41. In the construction of sections four, five, six, seven, eight, twenty-eight, twenty-nine, thirty-one, thirty-three and thirty-four of this chapter, the terms " gas company " and " corporation " shall include all persons owning or operating works for the manufacture and sale of gas for heating or illuminating purposes within the commonwealth, and the terms " company " and " companies " shall include all corporations or indi- viduals engaged in the manufacture and sale of electric light within the com- monwealth. FROM CHAPTER 406 OF THE ACTS OF 1903. SECTION 1. Corporations and companies engaged in the manufacture and sale of gas or electricity for light or heat shall annually, on or before the second Wednesday of September, make to said board, in a form pre- scribed by it, a return for the year ending on the thirtieth day of June preceding, signed and sworn to by its president and treasurer and a majority of the directors, of the amount of its authorized capital, its indebtedness and financial condition, on the said thirtieth day of June preceding, its income and expenses during the preceding year, its dividends paid out and declared, a list of the names of all its salaried officers, and the amount of the annual salary paid to each, and the balance sheet of its accounts as of said preceding thirtieth day of June. Every such corporation and company shall at all times, upon request, furnish any information required by the board relative to its condition, management and operation, and shall comply with all lawful orders of said board. PART V. ELECTRIC LIGHT WORKS. In the form of application book referred to under Part III, by the substitution of the word " electricity " in lieu of " water," and* the words " conduits, poles, and wires," in lieu of " pipes," this book is adaptable for electric light works. If, however, further details are desired, the number of arcs, nights per week, hours of burning, candle power, horse-power of motors and fans, period of contract, rate, etc., can be incorporated. In lieu of "service card " and " plumber's card " referred to under Part III, substitute an " electrician's card," which will show the service number, name of customer, location, size, kind and length of wire, number and kind of poles, cross arms, conduits; number arid kind of lights, candle power, and horse-power of motors, etc. The same general forms of collector's report and treasurer's statement referred to under Part III are applicable, by inserting columns for electricity subdivided into columns for meters, power, advertising, etc.; and rent subdivided into columns for meters, fixtures, and motors, together with column for house wiring. BILLS. The same form of bills (Form D) referred to under Part III can be used by the substitution of the word " electricity " for " water " ; also bill to have printed thereon, " meter reading, K. W.," "last reading, K. W.," " difference, K. W.," " rate and amount due." In case electric light company charges for house wiring, or rents or sells fixtures to its customers, these items should also be printed on the bill to save unnecessary clerical labor, or else printed on bills of different color. In the form of meter book (Form J) under Part III, substi- tute " K. W." for " Cu. Ft."; and for the On and Off book (Form K), in lieu of column " Fixtures," substitute column "Meter " sub- divided into " On when " and " Off when." NOTE. For Customer's Registers, see Part IX. Electric Light Works. CASH BOOK, JOURNAL, AND LEDGER, 117 These three books can be combined in one volume or binding for a small company, allotting one half of the pages to cash, one eighth to journal, and three eighths to ledger. For the credit side of cash book a short leaf should be inserted, owing to the large number of accounts thereon. The same general forms (M and N) are recommended, with ledger headings as follows: I 118 Corporation Accounting and Management. For credit side : 3 cc O Z CO Z) UJ ^3 5 S t UJ ^ _] J i ISCELLAI 3COUNT K UJ O o: 5 5 ? Q O K Z ^ < UJ u t- 0) EWALS 1 CO NTEREJ I Z LU H "* CC 5 a I Q Z 2 CO cc j a. K UJ 1 i co CO CO ^ UJ o UJ UJ i i h z oc o 1- Q 2 CO Li o 1- fe EWALS X 1- 1 Z UJ oc CO g Q- oc t- z c g i 5 co z _J i 5 ^ j !s a Ul cc o u cc 3 < " > z a 1 1 cc < i Z cc < CO J Q Z p MOTOR 2 o o kRATUS A > Q ^ a. Z Q < ** Z UJ co" fe DC UJ [_ CO UJ : d > 3 UJ S cc _J Ul P * co" UJ CO c E z o t- DJ UJ S 2 Electric Light Works. 119 The total of all the columns, excepting only " Other Ledger Accounts " column, can be summarized at any period and posted by one entry direct to the ledger, thereby avoiding a great deal of unnecessary posting. The " Other Ledger Accounts " column is intended for any personal or impersonal account with which it is desired to open an account in the ledger, and requires separate posting for every item in this column. If payments are made by voucher check, columns can be in- serted for voucher number and total of voucher, the latter balanc- ing the distribution of the check. For a large plant it would be advisable to open an accounts payable or distribution book and make distribution un^ler the suggested headings for all disbursements, opening account with said book in the main ledger by the controlling method. (See Controlling Method and Accounts Payable, or Distribution Book under Part III.) The accounts should also have some designating number or letter when so arranged, which would materially assist in the post- ing, entering, and classification. CLASSIFICATION OF REVENUE, OPERATION, AND MAINTE- NANCE, FIXED CHARGES AND CONSTRUCTION. REVENUE OR INCOME. (A) Electricity. (B) Rent. (C) House Wiring. Account (A). To include all receipts from commercial arc lights and com- mercial incandescent lights by contract, for metered electricity, public arc lights, public incandescent lights, electricity furnished for power, advertising, or any other purposes. Account (B). To include all receipts for rental of meters, fixtures, motors, etc. Account (C). To include the receipts from house wiring. 120 Corporation Accounting and Management. EXPENDITURES FOR OPERATION, MAINTENANCE, AND MANU- FACTURING. (D) General Expenses. (E) Manufacturing Expenses. (F) Repairs, Renewals, and Maintenance. (G) Salaries and Wages. Account (D). To include all charges for rent and care of offices; insurance of real estate and other property against fire; steam boiler, accident, and liability insurance; legal expenses, including therein damages to persons or property; office supplies, such as account books, printing, stationery, postage, repairs, and renewals of office fur- niture, etc. Account (E). To include all charges for fuel; rentals for real estate or water power at works; oil and waste; water; salaries and wages at station, including superintendence; repairs, renewals, and main- tenance of works, steam plant, electric plant, water power plant, canals, dams, tail-races, etc. Account (F). To include all charges for repairs, renewals, and maintenance of poles, lines, meters, motors, lamps, carbons, globes, etc., excluding only repairs, renewals, and maintenance of power station. Account (G). To include the salaries and wages of meter readers, collectors, office and executive force, excluding salaries and wages at power station. FIXED CHARGES. (H) Interest and Discount. (I) Taxes. Account (H). To include interest on bonds and other interest-bearing securi- ties; also interest and- discount on notes and open accounts, excepting only interest and discount on construction items.* * See note under Water Works Classification. Electric Light Works. 121 Account (I). To include all taxes of whatever nature assessed against the property.* CONSTRUCTION. (J) Real Estate. (K) Apparatus and Machinery. (L) Lines. (M) Meters. (N) Miscellaneous. Account (J). To include the cost of all land, buildings, shanties, wharves, etc., of whatever nature, with their necessary equipment, such as elevators, piers, etc., with any additions or improvements thereof. Account (K). To include the cost of installation of all machinery and manu- facturing appliances, such as water-power plant, including therein dams, canals, penstocks, tail-races, etc.; steam plant, engines, boilers, heaters, condensers, etc. ; electric plant, dynamos, switch- boards, generators, transformers, regulators, etc., in station. ' Account (L). To include the cost of installation of all street and service lines, overhead and underground, including poles, wiring, cross arms, conduits, cables, manholes, etc. Account (M). To include the cost of all meters and meter appliances, together with freight and cartage thereon, and all labor and superintend- ence in connecting same with the system. Account (N). To include the cost of all office furniture and fixtures and any other extensions or additions to the property not otherwise enumerated. * See note under Water Works Classification. 122 Corporation Accounting and Management. AUXILIARY BOOKS. s o. U. (B ll ^ j~ 3 O i- 0) b c co CL O O - u CO 3 bo 1 to LU CC o CO ESCENT "bO c CO to '3 o c3 ^ Q CC z O co h- u h 5 z S Q) Q ^ o to 1 b Z Q ^~ 1 6 z o b ai .g 2 Z) a o -C 5 cc LU ^ 3 C3 z 1 c cc CO Q 3 U. o Q to "O to i z Q_ T5 cc 1 CO 1 c 2 T3 C * si CO k Electric Light Works. 123 1 i ii. "a 5 ; Z CL cr 00 LJ Z I 'J z if u z LJ o -o c. CO -o Q c (5 i -C~ ^ -^ z rj LJ ^s o LU > CO CQ ^ CO | 6 O H cr z 1 i M . OC .9 ^ c s 2 \ >~ (/} 1 d Z 1 1 (0 O t* LJ c OC .T* "^ LJ *^ CL ^ o u 1 CO *5 CQ "c ^ 5 o c UJ ^ c t 2 < ' ' BE O .9* >. 8. -Q CO 3 cr 08 ^ h- LJJ Q. 8 ^ ^ o o 00 - 2 CQ I cr LU -1 Z CO JO !j O O LU m ^ < Q." i CL co Z > Z ^ i OC UJ * CO It 1 OC t ! -0 "O ^ co ' . 5 CO H 1 o cr OC 5 o ^ < OC O z i z h- T o g d ^ z o _i z z z 124 Corporation Accounting and Management. (C) Station Record. This book is made up in a columnar manner, with columns for date, hours running, condensing, non-condensing, tons of coal used, maximum horse-power lamps burning, average horse- power lamps burning, direct current output, alternating current output, total current output, and column for remarks. (D) Real Estate Book. LAND BUILDINGS REMARKS Location No. Feet Location Character Dimensions RIGHTS OF WAY Location Description No. Feet For a small plant, the record books, viz., construction record book, equipment book, power station and real estate book, can be incorporated in one book, allotting the greater part of the pages to poles, wires, underground conduits, manholes, arc lamps, incandescent lamps, transformers, sub-stations, motors, and public lamps, as these records are active, due to the extensions of the system, while the other records are more of a fixed character. If further information is desired as to the character of the fixed structures, such as power station and other buildings, apparatus and machinery, a dozen or so blank pages could be incorporated in the book, whereon sketches or diagrams could be made, showing the construction and memoranda of the details thereof entered from the original specifications or contracts for building the same, thus having immediate access to this data when occasion requires, obviating the necessity of hunting up the contract or data which may have been misplaced or lost in the office files. NOTE. See form of report required by gas and electric light commissioners of Massachusetts at the end of Part IV. PART VI. STEAM HEATING WORKS. By a few minor changes in the wordings and headings of appli- cation book, service card, collector's report, treasurer's statement, and on and off books referred to under Part III, these can be used for steam heating works. In lieu of plumber's card '(Form C), Part III, substitute a " steam fitter's card," showing about the same details as to fix- tures used in this class of business; also the number of feet of floor surface, the ratings as a rule in steam heating companies being made upon this basis. The same general form of bills (Form D) can be used by the substitution of the phrase " Steam heat for .'.... feet of floor surface." In case company sells or rents fixtures, these should also be printed on the bill to economize in clerical labor. Should steam heating company be owned and operated jointly with an electric company, it would be advisable to have bills for steam heat rendered on paper of different color, in order to avoid confusion and expedite posting. NOTE. For Customer's Registers, see Part IX. CASH BOOK, JOURNAL, AND LEDGER. The same general forms (M and N) referred to under Part III are recommended, with a change of ledger headings, viz. : For debit side : STEAM HEAT SERVICE PIPES AND EXPENSE FITTINGS OTHER LEDGER ACCOUNTS 126 Corporation Accounting and Management. For credit side : 3 0) J2 O. 31 QC (J U O X < Steam Heating Works. 127 CLASSIFICATION OF REVENUE, OPERATION AND MAINTE- NANCE, FIXED CHARGES, AND CONSTRUCTION. REVENUE OR INCOME. (A) Steam Heat. (B) Service Pipes and Fittings. Account (A). To include all receipts from the sale of steam heat for purposes of every kind. Account (B). To include all receipts from the sale of service pipe and fittings and for any labor in laying and connecting same with the distri- bution system, which is chargeable to customers. EXPENDITURES FOR OPERATION AND MAINTENANCE.* (C) Expense. (D) Salaries and Wages. (E) Repairs and Renewals. (F) Fuel. Account (C). To include all charges for rent and care of office; insurance of real estate and other property against fire ; steam boiler, accident, and liability insurance; legal expenses; office supplies, such as account books, printing, stationery, postage, renewals of office furniture, etc.; oil, waste, packing, etc., for use at works, with freight and cartage thereon. Account (D). To include all wages of engineers, firemen and assistants ; sala- ries of office force, superintendent of works and executive officers. Account (E). To include all charges for repairs and renewals of machinery at works; distribution mains and appliances; manholes, service piping and fittings, etc. * If it is desired to show cost of producing steam, exclusive of its distribution, the accounts should be arranged in the manner suggested for Gas Works. 128 Corporation Accounting and Management. Account (F). To include all charges for coal, wood, or other fuel, including the handling of same and freight and cartage to the works. FIXED CHARGES: (G) Interest and Discount. (H) Taxes. Account (G). To include interest on bonds and other interest-bearing securi- ties, also interest and discount on notes and open accounts, ex- cepting interest and discount on construction items.* Account (H). To include all taxes of whatever nature assessed against the property.* CONSTRUCTION. (I) Distribution Pipes. (J) Service Pipes and Fittings. (K) Manholes. (L) At Works. (M) Miscellaneous. Account (I). To include the cost of all distribution pipes, gates, special cast- ings, lead, packing, fuel (for melting lead), with freight and cartage thereon to the point of use ; trenching, backfilling, paving, and all labor in extending the distribution system, together with the cost of supervision. Account (J). To include the cost of all new service pipes and fittings, with freight and cartage thereon, and labor in laying and connecting services with the system, not otherwise charged to customers. * See note under Water Works Classification. Steam Heating Works. 129 Account (K). To include the cost of all brick, cement, and stone manholes, manhole covers, with all freight and cartage thereon to point of use, together with the labor cost of building same and for any supervision thereof. Account (L). To include the cost of installation of all machinery and appur- tenances used at the works, together with the cost of any additions or improvements thereof. Account (M). To include the cost of all other additions to or extensions of the plant not otherwise enumerated under construction. AUXILIARY BOOKS. Under the head of Auxiliary Books referred to under Parts III and IV, the construction record book (Forms P and P-l) and gate book (Form P-2) are the most important for steam heating works. The construction record book will show size, kind, length, and location of all pipes, valves, valve boxes, manholes, etc., which are generally buried underground, and details and sketches of other structures, such as stations, sub-stations, regulators, engines, boilers, etc. The gate book will show the location of manholes, gates, etc., by streets. For a small plant the construction record .book, station equip- ment book, and real estate book can be incorporated in one book, allotting the greater part of the pages to pipes, valves, manholes, etc., as these are active, due to the extensions of the system, while the other records are more of a fixed character. If further information is desired as to the character of the fixed structures, such as stations, sub-stations, machinery, etc., a few blank pages could be incorporated in the book, whereon sketches or diagrams showing the construction and memoranda of the details thereof could be entered, culled from the original specifications or contract for building the same, thereby having immediate access to this data when occasion requires, avoiding the necessity of hunting up the original data w r hich may have been misplaced or lost in the files. PART VII. TELEPHONE COMPANIES. Applicants for the use of telephone service sign a contract either for limited or unlimited service, guaranteeing a certain minimum amount for the use of same and exchange service. The limited service form of contract allows a maximum number of calls at a stated figure ; and for all calls in excess of the maximum there is a stipulated charge for each call, the cost of the service being based on the number of calls desired and whether on a separate line or in combination with others using the same line, there being no charge under ordinary circumstances for the in- stallation. The unlimited service allows the subscriber an indefinite number of calls at a stated figure. ELECTRICIAN'S CARD. When the instruments are installed, the electrician makes a return on an " electrician's card," showing the drop number, name of subscriber, location, size, kind and length of wire, number and kind of poles, cross arms, etc., together with the details of the inside installation, such as number and kind of telephone, extension bells, extension sets, booths, etc., after which all data deemed necessary is transferred to the customer's register here- inafter mentioned and card filed. OPERATOR'S SHEETS. Each operator is supplied with a daily tally sheet, on which she records all calls inside circuit chargeable to each subscriber in her section, which is turned over to the accounting department daily. A summation of the calls chargeable to each subscriber is made monthly, and when same are in excess of the contract limitations, the subscriber is charged therefor at the stipulated rate. Telephone Companies. 131 She is also supplied with printed sheets or cards, showing thereon drop number, subscriber, exchange called, party calling, by whom called, time, assignment, exchange calling, messengers, etc., on which she records all long distance calls, either on or from the subscribers in her section. These are also forwarded to the ac- counting department daily, which incorporates same with the details thereof in the regular bill for service rendered each sub- scriber at the end of the month or quarter. By the filling in of the columns " Exchange Called " and " Ex- change Calling " by the operators at each end of the line, it not only serves as a check or verification of the long distance calls for the company's information, but is also available should any subscriber question the charges on his bill therefor. BILLING AND COLLECTIONS. The form of bills can be made with or without stub attachments, depending on the method of accounting in use. (Form of Bill.) (D-l.) .190 To NORTHERN TELEPHONE COMPANY, DR. To Rental per Contract, for Quarter ending. or from to To Calls in excess of contract To Long Distance Calls (per itemized statement on back, or attached) To Miscellaneous (giving details) Total Received payment for Company, 132 Corporation Accounting and Management. \- H ffi- 1 H S ^ S oc Q ed O < i 5 i tn ^ o: 1 m w o 3 PQ z ^o o w UJ _l 1 3 M 1 n > S to ! M > S S d 3 ^ I UJ Z UJ X _J o < x o UJ The greater part of the bills are either paid by check or cash at the main office, while the delinquents need the constant attention of the collector. When collections are made by him ; they are entered on his report, showing the drop number, name of subscriber, and amount Telephone Companies. 133 of check or cash received; and when same has been transmitted to the treasurer or other officer, the collector receives a receipt therefor, made detachable from the report by a perforated line. The form of collector's report can be drawn up to show the details of collections, if desired, such as rentals, tolls, excess tolls, foreign tolls, messengers, etc., and column for total. (See Form G, Part III.) IN AND OUT BOOK. This book is arranged in a columnar manner (Form L), with columns for drop number, subscriber, location, date connected, date disconnected, and contract classification, subdivided into columns for telephone, extension bells, extension sets, booths, mis- cellaneous, and column for remarks. Abstracts of the daily changes should be sent to the bookkeepers. For a large company it would be advisable to have separate books, one for the " In " and one for the " Out " subscribers. If desired, columns can be inserted showing the date of contract and date of its expiration. NOTE. For Customer's Registers, see Part IX. 134 Corporation Accounting and Management. CASH BOOK, JOURNAL, AND LEDGER. or OTHER LEDGER ACCOUNTS General Miscellaneous co LU Z IJ Q LU CO OTHER LEDGE ACCOUNTS LU _J co LU \ O s O c o Q Z "D C CO CO LU E c UJ 1 c LU -J 0) z ^ X LU co to c nj z UJ H z .c z UJ LU 0. ^ UJ 5 z S) D co" c UJ z O 1 -C LU f- z z 1 3 I UJ z Ul o 1- o D -C o x 111 UJ oc CO QC o CO co" 1- p QC o Z < z o 3 Q_ Ul !_ 1 V oc w CO (/> _J C 4) UJ "^ 2 1 U D Q CB to o 5 Q C CO o ^ POLES GROUN CABLE s;no 9-M/v CO o: c OQ to c BE UJ Q "o * | CO Z D bo 1 to c & O 8 c c o "5 k 1 < c _fc i I o 3 o u. | O Z LJ EC JC c ^ 2 > *"' c 0) _J t Lu . CO "O c _ ; - h- k o bo c E 13 U Q cr CO (J III o: 2 CO UJ -_ ^ CO QC oo o i UJ _J JC ^ ^ o "z CO O "a. OL o _J ll | O. co z Q Z I 1 8 0. co 1 ^ 1 -o c I 1 CO k 2 Telephone Companies. 139 In large companies the Construction Record Book can be sub- divided into districts, and each district manager furnished with the construction records pertaining to his division, so that he will have at hand all the details pertaining thereto in an emer- gency. Separate pages of the Construction Record Book should be allotted to the long-distance lines. 140 Corporation Accounting and Management. n) CO LJ Z (L X C5 Z 1 (3 1- Z LJ _J LJ CQ I 1 u. 1 f ? 6 ^ JK I 1 5 LU c o "w C CO E > *-' CO b s < a! LJ LJ I Z > X ^ ^ U. o c k 1 z d Z 1 Telephone Companies. (C) Real Estate Book. 141 LAND BUILDINGS OR EXCHANGES I Location No. Feet Location Character Dime is.ons Method Construction RIGHTS OF WAY Location Description No. Feet For a small plant, the record books, viz., Construction Record, Equipment Book, Power Station and Real Estate Book, could be incorporated in one book, allowing the greater part of the pages to poles, wires, underground conduits, manholes, cables, circuits, switchboards, etc., and long-distance lines, as these records are more active, due to the extensions of the system, while the other records are of a fixed character. If further information as to the character of the fixed structures is desired, such as apparatus and machinery, exchanges, etc., a few blank pages could be incorporated in the book, whereon sketches or diagrams could be made showing the construction, and memoranda of the details thereof could be entered, culled from the original specifications or contract for building the same, thus having immediate access to this data when occasion requires and avoiding the necessity of hunting up the original papers which may have been lost or misplaced in the office files. PART VIII. ELECTRIC RAILWAYS. The business of an electric railway compared with that of other quasi-public corporations is mainly on a cash basis, and does not require the numerous books of such corporations pertaining to the finances. The ordinary system is generally divided into departments, each department having a receiver to whom the conductors turn in their reports and settlements daily, and in some cases after each trip. The receiver turns over these reports and settlements daily to the collector from the main office, where same are audited. The starter takes note of the number on the car registers at the beginning and end of each trip; and always at the beginning and end of each day's work. These are also forwarded to the main office daily and serve as a verification or check on the conductor's reports. CONDUCTOR'S REPORTS. The usual form of conductor's report has printed thereon route, date, car number, name of conductor, number of conductor, number of motorman; cash fares, number and amount; ticket fares, number and amount; totals; and on the back of same, time out, time in, hours and minutes of service claimed, trip number, number on registers at the beginning of each trip, ditto at end of each trip, number of cash passengers, number of ticket passengers, etc. INTER-URBAN STREET RAILWAYS. There are many plans and methods adopted for collections on inter-urban street railways, but the two most simple and effective plans are termed the " Zone Plan " and " Duplex Plan." The Zone plan makes the rate of fare between points five cents, at each point of which the conductor is obliged to make a collec- tion of five cents, or its equivalent in tickets, ringing each collection on its respective register. Electric Railways. 143 The Duplex plan consists of two tickets or slips being punched through by the conductor, one half of the ticket going to the passenger and the other half held by the conductor, to be turned in by him with his collections, which serves as a check on the amount of money due from him. FREIGHT AND EXPRESS. Freight and express traffic as a rule is generally small in com- parison with the passenger traffic. The conductor is supplied with sufficient Duplex tag forms, having printed thereon name, address, box, barrel, bag, etc., destination from to , amount paid, which tag should be punched by the conductor in the square or section designated by the freight or express, one half of the tag to be turned in to the receiver with the conductor's report, the other half to be attached to the parcel until delivered, at which time it is detached and signature of the consignee secured thereto, after which it is turned in at the office, filed with receipts and held as proof of delivery. In case of a large traffic in freight and express, the accounting should be more along the lines of that for steam railways, espe- cially so when freight is run on regular scheduled trains. Fixed tariffs should then be arranged for different commodities, by car- load and less than carload lots, and regular waybills made in duplicate, the original being turned over to the conductor, who in turn hands same over to the receiving agent, each making proper records to show the handling of the freight while in his care or possession, the receiver securing a receipt therefor on delivery to the consignee. The business may also warrant a daily, weekly, or monthly abstract, both by the forwarding and receiving agents, showing the date of shipment, waybill number, commodity, weight, rate, amount paid, and amount to be collected. The amount to collect on the abstract of the forwarding agent should agree with the amount paid as shown by the receiver's abstract, plus the amount uncollected for undelivered freight. 144 Corporation Accounting and Management. PAYROLLS. Payrolls for conductors and motormen of the entire system are made up at the main office from the conductors' reports or from the timekeeper's report of the department. The payrolls for barn, shop, line, and track men are also 1 made up at the main office from the daily report of the foreman or timekeeper, showing the name, occupation, rate per diem, with columns thereon for the distribution of the labor to their proper classifications. PAYMASTER. The paymaster is given a voucher or check for the amount of the payrolls of the department to be paid, either the same day or the day previous to the payment, and is charged therewith on the books at the main office. Fixed days are allotted for the payment of each department, and at certain hours and convenient places for the employees thereof. On the return of the payrolls by the paymaster, with proper signatures or receipts for the payments, he is given credit for the amount thereof, plus cash returned for any unclaimed wages. SUPPLIES. Supplies for each department are furnished on application through Requisition Forms (Form S), and when same are duly audited, countersigned and sent, the respective department is charged therewith on the books at the main office. (See Department Order, Requisition Order, and Invoices under Part X, Purchasing Department.) CASH BOOK, JOURNAL, AND LEDGER. These books can be combined in one volume or binding for a small company, allotting the first quarter of the book to cash, second quarter to journal, and last half to ledger. In view of the large number of ledger headings and subdivisions thereof, both for the receipts and disbursements, the best method of handling these accounts is to open what is termed either an Electric Railways. 145 Accounts Receivable Book or Earnings and Income Register, for the receipts, opening an account with said book or register in the main ledger by the controlling method, as explained under Part III, with ledger headings as follows: CO 3 O M | "c ,3 3 E c fc- 2 - o O - U s o -C 6 1 6 6 I a. "o CO 2 (O U s c "c LJ i c/^ D. _J 1 n E "o 'c oe f 3 "5 scellaneous Ea cc. Miscellaneous In 1 5 Owned 2 "o ^ ^ "c ~ O cc H* in "M E 2 ul 1 -o c ;ome frc _ CC Q. Sflj v> o m M c to O 3 <1> c ^ g- S<^ CO CO M M ^ c "o. J2 5 liu "c o -i Cleanin z | c ^ 1 n Q_ Q. C ._ CO g 1 POWER cc o L- o tormen ipment u. 3 Z O JZ o 5 1 1 Z cc "o o H 1- - LU O. bo I cc UJ Q. 1 O 1 O u S (J "S 1 CO 3 *- 09 "O c o| o O en a> I * o x o Q- bo 0) k. co H S u. 1 o> "ca o "c CIS c w Q. m rt o CO O 0_ Electric Railways. 147 advertising and 1 Attractions Insurance S c o Is to "^ HI rt Miscellaneous 3 s J- o 1 s 2 cJu | 1 III f Tracks rminals .j 2 "c ^ 10 "c cE ectric L snstruct |l i c Q. T3 C 42 LJU 11 i M o i 1 o Roadway ruction =5 CO * $ i v UJ II ^l2 il -5uj 8 *3 5 S *- S o So 3 - 1 bo oc 5 oc Ul c 5 Ul o: 0- (O J ^_, 0. I ^; o CO CO oc 1 CO Ul CO Z oc bO i UJ Q u. 1- CO Ul _f 1 Sr C (0 Ul u. to c Ul a D E* T3 C o _J O Ul CO 0. z E -2 CO E 1i> E CO "OB c cd +rf oc l2 o Q o bfi o "^ "a) ^ o 3 CO 1 V U. s Z I POLES .c f +. SPIKE bo c oc O T> O ^: LL O S Q> z 00 c 0. 5 to "* Ul oc -Q z Q. CO I C c o .3 TRESTLES 1 Q o Z Q Z CO ti Ul o c c V 8 1 1 ^ , QC 2 CO U) to A _ O z oc 0) STING CO Ul QL 1 o o E o tL CO 13 00 00 I o 1 CO c Q. CO I 2 ^ M 1 I CO bo 1 C5 CO I oc o 1 Electric Railways. 159 C ; > 0) : o U cc Q. QL < 2 o c U 5 UJ oe 01 Z 5 H- UJ 03 1- a o UJ UJ t- 1 _ X I UJ ac M iii i . I X ^^ ^ o 1 _J H M b I .s 1 o: u I h- O CO -a c u. z I i 1 1- I 3 1 a UJ o Q. ii J_ E X z 8 o m o UJ Q P ^ 1" c en jQ 1 ff | i E c I 3 g g a. H L m _; 1 i- o _ 11 1 a z 1 CL _J o V) ' QC ~ ^ 3 j O a i m 6 Z 1 -o CO 5 160 Corporation Accounting and Management. C (rt "S 0> c cc CO ^ _|z -D C cd III ^ cr _ UJ _____ 1- 8 -D UJ o> cc. c H nsion cc I es Z CO cc UJ 6 z 3 1 Q z z K- H- UJ s UJ X o CL ^ - z cc I 5 UJ C I 6 m T3 C M Q -o c 35 * CL cc ^ I \ **d T. o" Z 6 j 1 ATORS z m UJ z 5 1 a (0 1 1 cc 3 o Z X $ cc T3 0) CO 3 . * G s-x s i u cc TJ o CL UJ z ^ o z - o O ~z. UJ 5 c o Z * z "So C/) ^ Q TJ C UJ DO C LU cc UJ 1- c 1 CO LU o -o Z c cc O Z 6 z CO Electric Railways. 161 i O -) L U 3 ( J I 1 c 5 J C J | a c i :: c 4 c t i L !| o Z 1 ation fc-L^ a : X~N uu J U. J 1 c | j< O I 1 t> 5? />- ^ s c H QC Q t C (J 00 (/) "g Q CL ^ O c o U. Z 1- c ^ w z E i ; UJ Q. Q Q en 1 c o s c o .3 1 "o *J "(0 1 c TJ D o o- ) c ^ _l O 162 Corporation Accounting and Management. In large companies the construction record book may be sub- divided into departments, and each department superintendent furnished with the construction records pertaining to his depart- ment, so that he will have all the details pertaining thereto in an emergency. (F) Operation Book, Power Station. This book is arranged in a columnar manner, with columns for date, hours running, condensing, non-condensing, machinery in use; subdivided into engines, boilers, dynamos, etc.; coal used, kind and number of tons ; maximum horse-power, minimum horse- power, average horse-power, current output, etc., and column for remarks, under which can be entered the weather conditions, extra labor employed, etc. For a small railway, the record books enumerated above, viz., construction record book, equipment book rolling stock, equip- ment book power station, and real estate book can be incor- porated in one book, allowing the greater part of the pages to poles, copper wiring, feeders, rails, ties, paving, etc., as these records are more active, due to the extensions of the system; while the other records are more of a fixed character. If further information of the character of the fixed structures is desired, such as turn-outs, railway crossings, bridges and trestles, pipe culverts, cars, machinery and apparatus at power station, real estate, etc., one third of the pages of the book should be left blank, whereon diagrams or sketches of the construction and important points bearing upon same, culled from the original specifications or contracts for building same, could be entered, thus having immediate access to this data when occasion requires, avoiding the necessity of hunting up the original contract or speci- fications which may have been misplaced or lost in the files. Some companies keep this data on cards in connection with set of plans covering the entire system. PART IX. COMBINED INSPECTION AND CUSTOMERS' REGISTERS. The combined inspection and customers' registers for water, gas, electric light, steam heating, and telephone companies are the most important books of original entry, excluding only the cash book, journal, and ledger. The inspection part of the book will show all the details of each customer's service, or so much thereof as may be deemed necessary; such as, For water works: Service number, name of customer, fixtures in use (or meter, number, size, kind, and location), purposes used, date connected, date disconnected, etc. For gas and electric light works: If method of accounting is by streets or routes, street, number, name of customer, meter (num- ber, size, kind, and location), purposes used, date connected, date disconnected, etc. For steam heating works: Street, number, name of customer, location, purposes used, feet of floor surface, date con- nected, date disconnected, etc. For telephone companies: Drop number, name of subscriber, location, contract classification, subdivided into columns, tele- phone, extension bells, extension sets, booths, miscellaneous, date connected, date disconnected. The fi.nancial part of the book is arranged in a columnar manner, as follows: For water works (fixture or unmetered register) : Amount due for water, service pipes, taps, miscellaneous, discount or abate- ments, amount paid, when paid, balance due. (Meter register) : Reading, cubic feet; difference, cubic feet; rate; amount due; dis- count or abatement; amount paid; when paid; balance due. For gas works: Meter reading, cubic feet; difference, cubic feet; rate: amount due; discount or abatement; amount paid; when paid; balance due. 164 Corporation Accounting and Management. For electric light works : Meter reading, K. W. ; difference, K. W. ; rate; amount due; discount or abatements; amount paid; when paid; balance due. For steam heating works: Steam heat, steam piping and fittings, miscellaneous, abatements or discounts, amount paid, when paid, balance due. For telephone companies: Rentals, tolls, excess calls, miscel- laneous, abatements or discounts, amount paid, when paid, bal- ance due. The inspection part of the book is entered only once during the life of the book, which can be made to run for any number of years, preferably five, on account of liability to soil from frequent hand- ling. If there is a change in the fixtures or name of customer, such changes can be entered from the " House-to-House Inspection Book," " On and Off Book," or " In and Out Book," or from any other method adopted for recording the changes, the last name entered running horizontally, being the present or latest customer using any particular service. By this method you will have at all times a complete record of each service connected with the system and its present status, thereby obviating the necessity of referring to other books of account or card memoranda when any question arises. It also affords comparisons of use by customers with the corre- sponding periods of the previous years, and avoids the necessity of opening new registers every year or thereabouts. The financial part of the book is self-balancing, the total amount of all bills rendered equaling the totals of the columns, discount or abatements, amount paid, and balance due. When bills are rendered monthly to customers, a short leaf is inserted in the book, printed on both sides. Totals of sheets are entered on a summary sheet. When payments are made, the respective customers' accounts are credited in these books, and the totals of the columns of col- lector's or treasurer's reports are debited to cash and credited to their respective accounts in the main ledger. If the accounts are kept by the controlling method, cash is debited and customer's account is credited in the main ledger, Inspection and Customers' Registers. 165 with the total of the report. (See " Controlling Method" and "Accounts Payable, Vouchers Payable, or Distribution Book"; also cash ledger form O-2, under Part III.) For a large city it would be necessary to divide the city into sections or wards, allotting books to such sections or wards in accordance with the number of customers and possible growth of the business, thus proportioning the books and work of accounting to different bookkeepers. For large companies, the columns for service pipes and taps, steam piping and fittings, under the financial headings for " Water " and " Steam Heating " companies, respectively, could be elimi- nated, and separate registers kept for these accounts, as charges seldom occur after the first installation, and then only, as a rule, for repairs or renewals. 166 Corporation Accounting and Management. o* E o 1 1 i 5 H t 8 i i 9 s 1 1 \ 8 i 1 I l 5 1 i 3 1 i ^ 1 1 I 1 s I I I 1 | 1 I 1 2 S - s i 1 s 2 2 UJ S 1 1 it Z i 1 s .22 j Customer's Re^ D FOR c NAME OF CUSTOMER 1 I 5 j - - i i i t ( i 1 Inspection and Customers' Registers. 167 I I 1 I . - I 6 I k I ^_. -^ ""^ - "S --%, i^ \_ ^ - rTiNx_ J s zS 2 Is 1 1 i 1 i 1 1 i 1 1 1 1 i i I I i 1 I 1 i i 1 ?1 i 1 I I i- | 3SOH STVNIMn eiaSOlO'M ssni us BHJ.VS i * z 1 1 1 Ij .X Bi 170 Corporation Accounting and Management. CARD REGISTERS. By this method cards are arranged in boxes, running numeri- cally or by streets or routes, each customer being allotted one card. When entries are to be made thereon, it necessitates hand- ling the box, finding the card, extracting same, making the entry, blotting same and returning it to its proper location in the box. When monthly totals are to be taken off, the amount charged to each customer on his card must either be rewritten on a separate piece of paper, or else called off to an operator of an adding machine. The number of handlings of the accounts increases proportionately the liability of errors, and it is seldom a balance is struck on the first trial. They are not self-balancing and rarely approved by auditors for this class of accounting. The misplacement or loss of a card throws the whole accounting system out of balance, which cannot be rectified until the card is found, or by reference again to the original data from which the particular customer's account was made up. The first cost of the fixtures and furniture necessary for the installation of a card system is considered very excessive, not taking the amount of floor space occupied into consideration. The greatest objection to it, from the cost standpoint, is the time consumed and force necessary to operate it, which is about in the proportion of 12 to 1 with the other methods, some account- ants placing it at 20 to 1. This method of accounting still finds favor with a few corpora- tions. Several large corporations who installed it have dis- carded same and are now either on the bound-book or loose-leaf system. PART X. PURCHASING DEPARTMENT. PURCHASING AGENT. All purchases of whatever nature should be made through the purchasing agent, or other duly authorized officer, who should be held responsible for all supplies on hand and received, and the proper distribution thereof to the respective departments of the company on properly attested requests or orders from the heads of the departments. (Form R) (Division or Department Order on Purchasing Agent.) BOSTON, MASS., 190 . Order No Department CONSUMER'S WATER COMPANY. To the Purchasing Agent : Please order the following supplies for the Company: Quantity Articles. (Signature) Approved : Head of Department. The above can be made up either in bound-book or on block form, manifolded, so that the department head will always have at his command a duplicate of the orders which he has forwarded to the purchasing agent, also for checking the arrival of the goods. 172 Corporation Accounting and Management. The head of a department should have a couple of rubber stamps made, one to indicate that the goods were received in a good condi- tion on date, the other per contra, goods received (lacking items checked or in bad condition) on date, signed by department head, per On receipt of the goods an impression of trie proper stamp should be made on the duplicate order which he retains, so that he can 0. K. or check the original invoice when it is received from the purchasing agent. The purchasing agent on receiving the department order (Form R) makes an impression on same with a rubber or other stamp, showing the date and time received, and later (after ordering the supplies) enters the number of the requisition order thereon. (Form S) (Requisition Order.) CONSUMER'S WATER COMPANY. BOSTON, MASS., 190 Requisition No Messrs. . Please ship to us at via . . CONSUMER'S WATER COMPANY, By Purchasing Agent. Purchasing Department. 173 The above can be made up either in bound-book or on block form, manifolded either in duplicate or triplicate, as the parties desire, the original to be sent to the vendor and the duplicate to be retained by the purchasing agent, to be held by him pending the arrival of the invoice and the goods. Should the requisition order be made in triplicate, the third one should be sent to the head of the respective department for which the supplies were ordered, or to the storekeeper, depending on the method of accounting adopted. On the carbons or duplicates of the requisition order there is printed in the lower left-hand corner: Invoice forwarded To Head of Department. INVOICES. On receipt of the invoice, the purchasing agent compares and checks same with the copy of the original requisition order and stamps same with a special stamp, having printed thereon: Date goods received, condition, approval of head of department, ap- proved, purchasing agent, and forwards same to the department head, who compares and checks same with his original order and record of goods received, and if found correct, approves same on the lines allotted for his entries and signature, and returns it to the purchasing agent, who also approves and forwards same to the accounting department for entry to the credit of the vendor's account. The invoice will then show on its face all the details of verifica- tion and approval. If the supplies have been ordered for stock, the invoice is stamped with a rubber or other stamp made for that particular purpose and sent to the storekeeper, who checks the items thereon with his record of goods received, and, if found correct, approves same on the lines allotted for his entries and signature and then forwards it to the purchasing agent, who in turn approves same and for- wards it to the accounting department for entry and credit to the vendor's account. 174 Corporation Accounting and Management. DEPARTMENT ORDER. In case each department orders its own supplies, the following form is recommended: (Form R-l) CONSUMER'S GAS COMPANY. Department. Order No. (Red ink.) BOSTON, MASS., 190 M.. Please send to , and charge same to our account. Head of Department. Enter the number of this Order on your bill; otherwise it will be returned. (Red ink.) In order to expedite business, each department should be allotted certain numbers, for example, - Manufacturing Department, Nos. 1 to 4,999, inclusive. Construction 5,000 9,999, Executive 10,000 14,999, The order blanks could be arranged in bound book, manifolded; on loose leaves, manifolded, or in bound book with stub attach- ments. PART XI. SALES DEPARTMENT. SOLICITORS. This department should have a polite and diplomatic corps, of good address, thoroughly conversant with the business, to develop same amongst the old customers and to secure new ones, especially along the lines of the present constructed plant. They would be a valuable corps to canvass new territory before extending the system, to determine whether the immediate or possible customers would warrant the expenditure of the funds necessary for the new construction. CREDITS, COLLECTIONS, AND CLAIMS. On general principles, parties who own their houses on making application or contract for the installation of a service should be allowed credit, and only parties of whose credit there was doubt should be required to make a deposit, the assumption being that they would not apply for the service unless they actually desired it and intended to pay for same. A continuous deposit left in the hands of a company to insure them from possibility of loss, or bad bills, injures the company with its patrons and the general public. The better and safer method is to render bills for shorter periods to customers whose credit is doubtful. The fixing of a date when all bills are payable under the penalty of having the service shut off, and the rigid and diplomatic en- forcement of this rule (unless the bill is in dispute) reduces to a minimum the amount of bad bills, as the customers then arrange to meet their bills promptly. Another method is the allowance of a discount for payment prior to a fixed date, which as a rule customers take advantage of. The treasurer can then always approximate the amount of funds 176 Corporation Accounting and Management. he will have on hand to meet the demands on the company, thus avoiding the necessity of making temporary loans to tide over periods when fixed charges and other pressing demands must be met. When there are claims for allowances or rebates due from any cause, if against the company, they should be allowed in a cheerful spirit with due apologies, and if there be any doubt the customer should receive the benefit. COMPLAINTS. All complaints made either verbally or by letter should receive prompt and courteous attention-, and same be referred to the head of the department, according to the nature of the complaint, who should despatch a representative at the earliest opportunity to adjust same. FIXTURES. A large room should be secured on the ground floor and adjoin- ing the office, if possible, where all the appliances and fixtures for gas and electric light business could be shown to advantage. The greater part of these appliances should be connected up with the system so that a possible customer could see at a glance the method of operation and effects of same, which would not require unnecessary explanations. All of the aforesaid departments should W 7 ork in harmony with each other, and unless the company was a large one, these depart- ments should be consolidated under one head. PART XII. ENGINEERING DEPARTMENT. PLANS. All companies should have at least one large set of plans, platted on mounted cloth, on a scale of one hundred feet to the inch, showing all the details of construction pertaining to the whole system, the initial sheet having printed or lettered thereon an index of the references. All extensions of the system should be plotted thereon at least once a year. When not in use they should be stored in a fireproof vault or safe, as it would entail consid- erable trouble and large expense to make a duplicate set in case of loss. For active use it would be advisable to have a set of tracings made, from which blue-prints could be made for any number of working sets desired. METAL PLAN CASE. This plan case should have a large number of drawers of suffi- cient dimensions to hold any detail plans that might be necessary, each drawer being either numbered or lettered on the outside. All plans, tracings, or blue-prints should be stamped with some designating number or letter. A card index is a valuable adjunct in connection with the plan case. EXTENSIONS AND ADDITIONS OF THE SYSTEM. Drawings or plans showing all the details of the new construc- tion or extensions of the system should be rendered weekly or monthly, as the occasion demands, either by the engineer or fore- man in charge of the work, but preferably by the engineer, duly signed by him, and same platted on the original, set of plans and tracings; also entered in the construction record book, under the month or year under which said work was done, thus keeping up the construction records, so that at the end of any fiscal or calendar year, according to the method employed, said book can be balanced. PART XIII. CHEMICAL AND TESTING DEPARTMENT. For large corporations it would be economical to install a labora- tory and have a sufficient chemical force to test materials and supplies, such as ascertaining the steam-producing qualities of coal; relative percentage of mineral and vegetable oil contained in oil for lubricating purposes; hardness of water and minerals contained therein, to determine its value for boiler uses; if for drinking purposes and delivered through lead pipes, whether the lead was in solution; whether contaminated by sewage or other impurities, thus forestalling suits for damages; component parts of paint to determine its probable length of wear; tensile strengths of cement for use on various parts of construction, etc. Records could also be kept by this department showing the dates and kind of materials and supplies purchased; amounts, prices, periods required for consumption; details of the analyses, tests, etc., which would materially assist the purchasing department in requiring certain standards when placing orders for such materials in the future. PART XIV. AUDITS AND EXAMINATIONS. Periodical audits and examinations should be made by a dis- interested party who is thoroughly conversant in the science of accounting, and by one whose vision is broad enough to analyze and make rough deductions. He should not alone be competent to check and verify the receipts and disbursements, either by note, voucher, or check, but should also be able to state whether such items have been appropriated to their proper accounts. In other words, whether the receipts have been applied to their respective accounts, such as revenue, notes, mortgages issued, etc.: and the disbursements, to an expense account of running the business; or a capital account, enlargement of the plant or reducing the liabilities. He should be given access to all contracts and other data, the accounting for which at times does not appear in detail on the books. Should the examination be made with reference to the purchase of a plant by other parties, this w r ould necessitate not only a thorough examination of the account books, vouchers, etc., for a period of years, but also of the act of incorporation, votes of stockholders and directors pertaining to the issue of mortgage bonds, stocks, or other securities, dividends, leases, contracts, etc. The examiner should also secure a certificate from the trustee for the bondholders of the number of bonds still outstanding, together with the coupons remaining unpaid, with the dates, numbers, and other details of same, so that he can verify and make comparisons with the canceled bonds and coupons in the treasury of the company and check the figures representing same on the books. In addition to the above, a general examination of the city should be made, covering the city's population, giving the United States census returns for the preceding thirty years, or more if deemed necessary; present estimated population; last state or school census; composition of population; city's assessed valua- 180 Corporation Accounting and Management. tion, tax rate, bonded debt; principal industries, enumerated, giving their annual output in quantity and dollars, if same are obtainable; steam and electric railroads entering city and their connections; water-ways, steamboats, and other lines; territory tributary thereto, with products, industries, -and valuation thereof, together with any other information which may be of value to determine the present or future prospects and growth of the community. There should also be incorporated in his report an extended statement of the physical plant, separating same into units, giving details of the parts of each unit, together with the condition of the plant from a casual examination, adding any recommendations as to methods of maintenance, operation, management, or improve- ment of the plant whereby same can be operated more economically. In case examination is made for valuation purposes, with a view to purchase of the property by a city or town, the main questions then at issue are earning capacity, franchise, going value, construction, capacity, physical condition of the property, etc. Valuation cases are generally heard before a commission appointed by the court, with the consent of both parities thereto. In such cases the accountant works in cooperation with experts in the particular line under consideration, such as owners, managers, engineers, etc. PART XV. DEPRECIATION. No positive fixed percentages can be made that will govern the depreciation of all water works, gas works, electric light works, steam heating works, telephone companies, and electric railways. The kind and nature of the original construction is the most important factor, but there are other causes and conditions gov- erning and surrounding each plant of the above classes that should be subject to special consideration and examination by experts in the particular class, especially so when the question of valua- tion is the one at issue, and even then there is a wide divergence of opinion. Depreciation arises from a variety of causes and conditions, viz., that due to wear and tear; to oversight or errors in original construction; to outgrowth caused by increased population or unforeseen use; later improvements or inventions in machinery, appliances, etc., by which the business can be operated more economically; scientific knowledge; lack of care, maintenance, and use; deterioration, such as electrolysis or chemical action on pipes, etc., corrosion, accretions in the pipe system; depopulation; by the falling off or stagnation in the business of special industries on which the city or town may be dependent; by the transfer of important business interests to another community; inadequacy of supply; pollution, in case of water works; to the elements, etc. Depreciation, when considered simply from the standpoints of " wear and tear " and " later inventions or improvements in machinery," etc., with the assumption that the properties have been well constructed and properly maintained, may be divided into three classes, viz. : Those parts of the properties which have the longest or maximum life; those which have an average or mean life; and those which have the shortest, or minimum life. MAXIMUM LIFE. To include structures of masonry, stone, or brick, such as dams, canals, tail-races, reservoirs; filters, foundations for machinery, conduits, manholes, buildings, etc.; embankments of earth well 182 Corporation Accounting and Management. sodded; cast iron pipe and special castings when properly coated and not subjected to electrolysis or chemical action; iron struc- tures, such as standpipes, gas holders, bridges, trestles, etc. MEAN LIFE. To include machinery, such as pumps, engines, fly-wheels, wooden buildings, valves, hydrants, mechanical filters, gas lamps, purifiers, roadbeds, paving, cables, cars, etc. MINIMUM LIFE. To include boilers, meters, heaters, retorts, gas stoves, electrical machinery of all kinds, poles, wires, carbons, lamps, globes, tele- phone instruments, switchboards, rails, ties, motors, controllers, arc lamps, incandescent lamps, etc. NOTE. Some of the latter class have a very rapid depreciation. On plants of first-class construction the following percentages appear to be a fair allowance for depreciation as a whole, deduced from the authorities consulted and what data the writer had available : Waterworks, H to 3% Gas works, 3 5% Electric light works, 5 10% Steam heating works, 7 10% Telephone companies, 8 ,, 12% Electric railways, 5 8% NOTE. The gas and electric light commissioners of Massa- chusetts now practically compel gas and electric light works under municipal ownership to include in the tax levy five per cent of the cost of the plant as a depreciation fund, under authority of Chapter 410 of the Acts of 1905, of which the following is an extract: SECTION 4. Said chapter is hereby further amended by striking out section twenty-one and inserting in place thereof the following: Section 21. Prior to the beginning of each fiscal year the manager of the plant shall furnish to the mayor, selectmen, or municipal light board, if any, an Depreciation. 183 estimate of the income from sales of gas and electricity to private consumers during the ensuing fiscal year and of the expense of the plant during said year, meaning the gross expenses of operation, maintenance, and repair, the interest on the bonds, notes, or scrip issued to pay for the plant, an amount of depreciation equal to five per cent of the cost of the plant, or such smaller or larger amount as the board of gas and electric light commissioners may approve, the requirements of the sinking fund or debt incurred for the plant, and the loss, if any, in the operation of the plant during the preceding year. The excess of the expense thus defined and estimated over the esti- mated income from sales to private consumers shall be included by the city or town in its annual appropriations for maintenance and in the tax levy. By cost of the plant is intended the total amount expended on the plant to the beginning of the fiscal year, for any purpose for which bonds, notes, or scrip may be issued under sections seven and eight of this chapter. By loss in operation is intended the difference between the actual income from private consumers plus the appropriations for maintenance for the pre- ceding fiscal year and the actual expense of the plant, reckoned as above, for that year in case such expense exceeded the amount of such income and appropriation. The income from sales and the money appropriated as aforesaid shall be used to pay the annual expense of the plant defined as above, for the fiscal year, except that no part of the sum therein included for depreciation shall be used for other purposes than renewals, in excess of ordinary repairs, extensions, reconstruction, enlargements, and additions. The surplus, if any, of said annual allowances for depreciation after making the above payments shall be kept as a separate fund and used for renewals, other than ordinary repairs, extensions, reconstruction, enlargements, and additions in succeeding years; and no debt shall be incurred under sections seven and eight of this chapter for any extension, reconstruction, or en- largements of the plant in excess of the amount needed for the purpose in addition to the amount then on hand in said depreciation fund. Said depreciation fund shall be kept and managed by the city or toum treasurer as a separate fund, subject to appropriation by the city council or selectmen or municipal light board, if any, for the foregoing purpose. All appropriations for the plant shall be either for the annual expense defined as above, or for extensions, reconstruction, enlargements, or additions; and no appropria- tion shall be used for any purpose other than that stated in the vote making the same. Xo bonds, notes, or scrip shall be issued by a city or town for the annual expenses as defined in this section. NOTE. Towns that are maintaining their plants up to proper standards and paying for same out of earnings object strenuously against including five per cent of the cost of the plant in the tax levy to be set* aside as a renewal or depreciation fund. PART XVI. FUNDS DIVIDENDS. FUNDS. Surplus Fund represents the excess of earnings or profit and loss account which has not been distributed amongst the stock- holders. It may be on hand in the shape of cash or invested in the plant, or part cash on hand and balance invested in the plant. Sinking Fund is a fund set aside periodically (generally in escrow) to retire outstanding securities, especially mortgage bonds. Reserve Fund is a fund set aside for some particular purpose, and is generally represented by cash on deposit. Depreciation Fund is a fund set aside periodically, taken from either profit and loss or surplus, to cover the whole or certain portions of the depreciation of a plant. DIVIDENDS. Cumulative Dividends represent dividends on stock which accum- ulate as a dividend charge against the stock until they are paid. Non-Cumulative Dividends represent dividends on stock which have been passed or defaulted, arid do not remain as a charge against the stock. Stock Dividends represent dividends paid out of the capital stock of a company. PART XVII. ANNUITY, COMPOUND INTEREST, AND SINKING FUND TABLES. * T-H N CO -* iC ^ (M co ^r c 2gSS = CM 1C CO CN C"l C C x ft r>- t>. i i o co X O T-H CN CO T 1C 1>XO o T-H co ic x T-H CM X 1C i> x' o fi co 3g|S2 OS X O CO X O ft CM CM X O T-H" co' OS CO OS "^ |> ^5 b OS T-H CO CO b- i OS CO 1C 1C COCOOO5O CO l>-- COO^b-X ft C f W f OOST-OCO b-OiCTfT-H COOM(MCO 1C t>- X O CO O O - b- r oc c c*3 t^ co os co irr ic ^-(N^5 ^osT-HC. ^2^2^' ?5SSSc^ Sfe55*S? 00 C X "f CO 1C OT-i(M"*b, O CO X (M X TfT-tOSb-b- CO ^ CO O^ Ol CS t^* ^^ CO ^H ^O CO C^ OC "T CS CO CO p H p!J ^J p X CM 1C S ^_ fi c>5 ic ft COCOblo (N CO O CO CO CM Tf CO X O CM CM iM T-H p ^H p c^ OS T-H c^i co' *' ic co' oc os' o c t>co^coco ic o x T-H 1C 1C X TfCOiCOX OS r^ ^H CO CM CM T-I N CO "* "2 ic r>^ os CO* l> X* O fi rH 1C OS CO (M' Tf' 1C CO X' -5A- S, X -S X -f 1C T-t re c: ic XiCcOftO OT-HTJH x* os' T-H c^' co' <** o t> os' c; ' co' -t co' t>^ os' r-! 00 OS CO CO CO CO CO CO CO CO CO O T-H CM CO rt< to CO t>- 00 OS O Tf Tfl tO b- U5 CO O 00 CO CO rt< OS O OS CO CO "^ H or, ^ oo co - OS T^H CM Tf iO t^ 00 C T-H CM CM CM CM CM CM CO T-HiOrfiOtO CO OS CO to rfi tOO^OSCO OO^rH oscoi-Htoos t^- TF r^. i to t^t^cooos ocococsco -^ os -t^i-HTt< CO CD CO T-H CO OS CM I> TF TtJ CO CM O CM t>- CO 00 tq CO I-H I-H iO to I-H CM OS CO <* CM b~ ' co' T-! co' i-I t> co os' to' CM os t^ to -* co CM' CM' co' -* to oc i-I to os coi>t^ ooooososo i-Hr-HCMco'* iocor^.oC'O5 Oi-ico^to a CM"* cOt^toocO tOr^T-HOOOS -^II-H i> os co co T-H to o oo b- r^ co o T-H i i ~iOOSOS i-HCOCOOtO 00 OS CM O CO t> :S6 %%Z O to OS to CO 00 tO to to CO CO CO * OS Tfi OC' 00 OS COCSCD ^T-HOOOt^ T-HT-HCM CO^flOtOCD' IOCO CO OCM CO CO C^ T i ^ T I CO CO I s "* C^ ^H OS CM O tO 00 CO OS CO T-H OS to t^ t^ Tf iO t^ O CMCMCMCDO COCM-^COt^ 00"*OS ""t 1 i-tOO^OCC rococo CO "* CO CD CO T-I O T-H Tf O g, ^ s is cM t^- T i OS CM OS CM OCD ^ OS CM 00 OS CO to CO tO 00 to O CM O 00 t^ CD to CO CO t^ 00 GO CO O OS HH O I> CO T-H T-H O O CM b- CO T-H IO O CM O 00 CO CO CM CM OOtOtOOs Ot^OCMCM ^rHT-HCMt- "HHCOCOCDI^ CO 1> CM GO CD tq t^. OS Tf O 00 00 O "* O 00 OS CM OC_ CO l> CO 00 i i to 00 T-H to GO CM' CO O -^-' Os' -*' OC CO Os' *' O to T-H CO ''t T-H 00* to CDCDCD^I^- OCGOGOOSOS OCitcMCM COCO^tOtO ^ O CD CO T n CO CM to O 00 COcMCOCMO Ot^-CpCOi i GO O O CM OS "HH ^ QT^ CO t^* tO OS T-H CM CM CO ^ to 1^ O t^- CM OS CO Tf CO CO TT CO O CO ^ 00 OS H5J * t* t^. oo ^ os tO CM CM Tf Tt< O t> to CD 00 t> T-H CO O -* CO 00 00 co oo CM r- "* CM to t^ O CO CO OS CM to i Tfi Tt< -HH to to to to CO CO ' C^ppscObr i i tit> O "* OS "HHOs OS OS O TT p 00 T-H CO CO OS to CO CO CO O t^ T}H cO Os CM OS O CM CO T CO CD to T-H to 00 CO tq to tq T-H *+ 1> O CO t^- 1^- 1>- oo oo OS O O OS T-H OS t^ CM -T CO 1> OS i I Tf T-H CD to CO 00 CM CD 00 T-H T^_ OS CD' os co' co os' oo oo os os os rj< CO CO T-H t^ CO CM l^ CD CM OS CM CM to CO CCtOOOSCO T-HtO^ 00 T-H to 00 CO 00 CO OS **? CO !> OS 1-1 CO CO CO %^ ^^^^g g! CO T-H OS T-H T-H CM CD CD to T-H " CO O OS T-H I> t> 00 CO OS tq CM to 06 o co CD' t^ I> GO 00 00 CM CO TfH iO CD t^ GO OS Annuity, Compound Interest, and Sinking Fund Tables. 187 i-HCMCO^iC O t>. X Ci O I-H CM CO -? 1C Ot^XCiO r-KMCO^iC CM CM CM CM CM t^rt< CM i- O OI-H CM CO TT CM iC CM Ci CM X 1C O CM X Ci iC X X t- ^CMOiXOi CM X Ci O . O O Ci -* iC CM t> Oi Ci I s "- rfi i < 10 u** iC O I s ** C* CM O ^H " TfiCOt^X Ci T- CM Tf _ Tf 1C i-J CM* CM CM CM CM* CM CO* CO' CO Ci t>. o x co CMOOCOI> COi-MOOCM iCOiiCCOCM 1> Ci i-t CO 1C l> Oi CM 1C X COCO Tt< Tjl Tt< * O O iC CM CM 5 o co 1-1 .-i CM CO iC O X 1C Ci CO CM Ci XCOCOCiO XCMCM O 1C X Oi O". Ci CO Ci X 1-1 co o x q CM I-H" CM" CM" CM" CM" CM CM" CM" co eo' co co co' ^" "t COCMXC Xt^I>^T-H r-CMXi-HiC ic ro f oo t> xt^fCiX J^iS 0. COXiCOX CM 1C CM O Tf iC * 1-1 1C t>- X t^- O ^f CO CO Tf O t Oi O CM CM CM" CM CM CO* CO" CO CO CO iCOCCO i-H^-iCCOCi CO Ci t^ C: Ci CiOOOCO CMt^iCO Ot^t^i iX OCiCCiX CMCM'-Ct-CC CM CM CM CM CM CM CM CM CO CO CO OOCMiCCM COCi^-i 'O CiCiCMCiCO ^t'^iCCit^ iCCMi-iCMO CMOCMOCO CM 1C CM - i 1C CMCOXt^r-i ^ Ci *3" Oi ^ O O CM X 1C CM Ci I s * iC CO CM IH O O I~H O O -! T-I C- X O CM" CM CM" CM" co" co Oi Oi t^ cc ct to re c^ ^c o ^^ t^* Oi o o^ cc oc ^^ CM CM CM X Ci t^" CO X X Ci "^t 4 CO iC I s " O O O O CM CO Tf 1C O CM' CM CM CM' CM X t^t Ci O * X CM l> r-H ,_ _ _ CM CM CO ^-ot^co or^icic ^rfXiC ^rft^CM I-~ CO Ci 1C CM CM CM CM CM CM I-H Ci X X Ci CM X 1C O O t>. X *? 1C TfOiO-^CO -riCXCMX "fCMCMCO SSBSS 28SS55 ^^^-^ Qiccic 5 _ eoi-t * "* 1C CO 00 00 CO CO Oi Ci Oi O O 8i-H CO O O iC ^- Ci t^ O OOC^- i i CM CM CO ^CMCOTTiC O r^X^iCO OCO^H-HCM T^t^CMi gg i^s2 ^2 S?lll li : OI>OOCiO ^f^^^tS 2^22cM CMCMCMCMCM 188 Corporation Accounting and Management. cob- oo os o CM CM CM CM CO ft CM CO ^ 1C CO CO COCO CO CO t>. 00 CS O CO CO CO CO ^T< T-I CM CO "f 1C o r^ oo os c rt< CS X CO CO (>. CO X T CM J J "J Q ,_, TTI ,-H T-H T T-H CM X CM CO T-H CO i-Ht^.CO 1C 1C GO 1 CO 00 GO OS OS O OS CO CO X 1C CO CO OS T ** CM CM l>- CS l> TT CM q as os" 1-1' CM CO CO rt" CO l> OS OS O CM 1C GO OS t> - sssg ; CM CM CM CM CM T-H C T-H O ' Tf I>COT-H T-H l-H THH 00 CM CO 1C iC 1C CO CO CO CM X CM CO l^.' t^ 1> GO Os" T-H CO O OS T i CO CM X CM T-H CM q os os q CO -tf' Tf' 1C t^ 00 Tf >C CM t^ CO Tfl 00 Tf CO T"* OS Tt* OC' O T-H CM C GO CO * 1! ii Tfi CM ic oo T-H Tt i> TJH TjJ 1C 1C 1C T-H TJH CO C T-H co o T-H co 1C Tfi >C 00 * 00 (N CO CO T-H CO 1C t^ >C OS OS C CM o ic co t^ o OS CO OS l-^ CM 1C Tfi CO CO Tfi XXCSOSO O T-H CM CM CO TtiiCcOt>-X S (M Tf tv CM O CM "* l^. T-H CO rt (M 00 00 t^ . T-H (N 1C 00 T-H 1C iC C 1C CO CO 00 CM CD O C co' t^ t>i co oo* 1C 1C t^- 1C CO ^H iC CO CO CO X t^. OS Tf 1 CM OS rf OS 1C T-H x cs os 6 T-4 ic T-H co x o X Tt^ 1C CO CM CO X CO X Tf T-H' CM CO CO TJH I 15 H r, g 1 1 if x rf co co co C l^ O !N C CO CO CO "* X TH 1C X O i> q co t^- q 1C CO* co' CO* t>^ SSSigg N* t^ X X* X* OS OS C C T-H ^f OS CM OS ^f t>. CO CO >C CO I> OS CM CO I-H x q co ic oq T}" 1C 1C 1C 1C i 1 CO Tf T-H CO oo T-H t^ co oo t** ^C CO CO Tf O CO CO OS CM CO CO CO CO t^ TJH co c t>- o *r ic T-H co CM ic os CM cq q i> r>. x x os ic Tf t^ r^* Tt* CM CO X XCO l> X OS T-H Tfl !> GO OS T-H CM CM CM* CM CO* CO T-H T-H Tt^ CO T-t CO 00 00 -^t 1 CO CO 1C CO . . . ;s co" co" co" co' co* O (M O5 GO T-H O T~ ' CO ^ co c^ T-H o rti iC CO 1> 00 C t>- CO CO CO CO CO CO CO T-H CS t^ CO CO Tti CO T-H CS X x q CM co ic TJH* 16 1C 1C 1C CO CO OS CO CO co T-H r^ co t>- 1C CM X 1C CM T-H CM CM_ CO TJH CM' CM CM* CM* CM* T-H T-H CO OS O2 O C (N T-H CO O t^ i-O CO T-H 1C 1C CO l> X CM CM CM CM CM CO CM X O O X 1C Tf t^ CM OS X t^- CO co x os q T-H CM CM CM CO CO CO O Tf T-H T-H U3 co CO t^ X co TJH 10 cq t>- CO CO CO CO CO os T-H co ic x oq q T-H CM co CO' Tjl TJl' Tj* Tj* CO CO T-H GO CO CM CN CM CM CM Tf CM CM CM CM CM C^4 (N (N (N CO T-H (N CO Tt^ 1C CO CO CO CO CO -H CM CO -^ 1C COt^XOS O 1C Annuity, Compound Interest, and Sinking Fund Tables. 189 s = .- b- X Ci O ^H d CO -P to CD 2 li I SCOOOCiCO COCOdt^Ci XCOXCOO Tf CO d X CO tOb-COO"^ t I-H CO CO CO i i O O X t> d Ci to Ci Ci TfHCOCOi-Hd.COCi'-X< tc^fxr^co cii-Hi>-cco X i d !> Tf I-H O X t>- CO Tf CO d l-H ^H ,-H T-l (M 00 CO 'ff CO COX CO CD CO t- J>- CO 00 00 04 00 -^t d to X to O l>- d CO CO I-H r-n Ci X X CO to OcOdCOtO O Ci i-i CO tC X Ci CO 'T O iCOtCOCitC O d X l> X I-H TJI Oi ^ O Xr-COt^'* d O X b- CO CO to TJ< Tt TT I ". x i>- co o co x Tt< o co d t^ b- d O b- d - !> CO 1C C Tf ^ CO CO CO CO d I-H I-H SOl^-^CiX t^-Cb-XtO b-t>.C<|i-Hi-H C^-^Ot^-* Cit^-^CO O t>. t>- !> X CO CO to CO (N CO N X I-H O Tti C- *' I-H ci cc' ci ci t>^ to" O X I-H CO X ^t* CI O Ci X t^ CO to to ^ ^ ^ CO CO CO CI ^H ^H ^^ CO CO O CO Ci I-H CO Ci Ci tC to Tt* l>* Tt" CJ O Ci ^ X ^H CO X C>l CO tO OdCOtOcOI>- cOtO^di-H tOitcOCiX ClCii-HtOO XtOtCCltO ' o o to Tj-' o co' x -^ co* rf co' c* *' ci to ci x co' co ** t>" co* c x cc* CiCJCOXtC dOCiXl> COcOtO-^^r 1 TfCOCOCOC^ I-H i ! I-H Sd^COCit !>-X'^r'^t l Ci XcOl>-dX ^fCJ^cOI>- !>-OCOtoCO _ Tf ci ; o ci X* O CO* to* CO* X* ci CO* *-* t>* ^' O >" to* to Ci* to* r-i Ci" !>* Ci O CO X 1C CM i i Ci X I s - O CO to tC -^ * Tfi CO CO C? I-H I-H I-H o Ci co ci to I-H I-H co ^ ^ !> co co co i> i^ to I-H T A d co d ^ co x t^ ' d" CO* ci X Tt* C> d* X* t>* X* C* ^t" X* CO* oi 1C* d* Ci* )>* )>* i-J CO* CO* O X* CidCOXC COi-tCiXl> l>.CO>CiO^ TfTtCOCOd di IT-II-H O X * "^ * CO Ci l>- CO 1C I-H Ci to Tf b. O CO l> CO "* !>. X O "f !> CO ' CO* to" O O CO* d* *** O* Ci O d* CO* C to* I-H !>-" rti i-I oi Ci* d" X* Tt* d" O Cid^tCitC COi-tOXX l>cOcCiCtO ^Tf^COd di-Hii^-i-H ^^ CO d ^ i-H l-H r-t l-H tC'dCOCCCO di-ndCOX COdCCOtO J>-OXtCd tOCtOi-nCI O t^- CO ^H iO to to to CO 'H to i-^ CO X CO Ci t^* J>* I-H d CO O *C Ci X ' to* co* d" d* x* ^ co* d" I-H d* ^t* x d' b- co" Ci d ~f Ci tC CO I-H O Ci X !> CO CO to tC Tt* CO C4 i-H i ' i-H i I l-H i-HdCOrfOCO I>XCiOi-H dCO^tOCO t^XCiOO o to o to o to c: d d co co -f ^ to PART XVIII. MISCELLANEOUS ACCOUNT FORMS. [ tfl- <* <* K | r ,,,7 c. 5 & > Si * * ii | w " S I - 1 1 fi c H o 5 X 2 "5 u P 3 1 u tf z DEPOSITS 5INCELASTRE o - o -? S ^ 5;o J 11 1 S| |f? .c .52 co c ^ W "m UJ I 5 s I i C S g UJ 1 1 Miscellaneous Account Forms. 191 I 1 192 Corporation Accounting and Management. ( Form V) Charge to IQO Payroll for Week ending 1 00 NAME AMOUNT RECEIVED (SISNATUBE OF PAYMENT PAYEE) (Form W) (Payroll Envelope) Payroll ending I90_ Less Cash Advanced $ Ralanr.e Due $ Verified and Approved 190 Head of Department Miscellaneous Account Forms. 193 1 MISCCL- LANEOU8 1 - - - z i 1 S - - - = o S - - -- S .2 1 i - - - o " 5 U) LJ i - . - " fe ^ > ^ M S H. i s 1 o 5 S ft -0 -S3 B S tr P3 5 S 5 5 g 1 M S 1 S [ | 1 !- 2 S2 fe ^ x 1 2 ^ w g 1 * 51 ^ -si i j 1 i I ? lilil II I "So o f S CL 3 I ! 1 1 s " " l g e & ^ H 1 J i 1 i !- 3 S 1 CO 1 L a S i u 5 -j I i ' - z . 2 s . d e CO j < 1 i ' *O3 1 I LOCATION cc u. ce WASHINGTON j 1 j e - 2 s S 11 < S S 6 6 6 ^3 ** ^ S z ^ Z o DC j i < 5 194 Corporation Accounting and Management. (Form Y) Treasurers Annual Report for the Fiscal Year ending 190 Profit and Loss Account Expense $ Water Meters $ Repairs, Renewals, and Maintenance Salaries and Wages Fuel Net Gain (Balance) Fixtures Hydrants ( ( Flushing ( ( Miscellane Meter Renta Service Pipe Taps Pub Priv Stre Sew DUS s s ic) ate) et) art Total Net Gain for Year Fixed Charges:- Taxes $ $ $ Total $ $ Interest on Debt $ Total Surplus for Year $ Assets:- Construction Cash in Banks " " Vault Notes Receivable Accounts " Inventory Fuel Supplies Total Liabilities:- Capital Stock S Bonded Debt Notes Payable Accounts Payable Coupons Outstanding Depreciation Fimd Surplus Total S Treasurer PART XIX. MISCELLANEOUS INSTRUMENT FORMS. NOTES. (Ordinary Form.) (Form 108) $ BOSTON, 190 . after date promise to pay to the order of Dollars, Payable at Value received. Xo. . Due (Form 109) (Collateral Security Form, No. 1.) DOLLS. CTS. BOSTON, 190 . .after date, for value received, promise to pay to or order, at place of business, with interest, at the rate of per centum per Having deposited with this obligation as COLLATERAL SECURITY, Dollars, , 100 196 Corporation Accounting and Management. with the right 'to call for additional security should the same decline, and with authority to sell the same or any collaterals substituted for or added to the above, without notice, either at public or private sale or otherwise, at the option of the holder or holders hereof on the non-performance of this promise, he or they giving credit for any balance of the net proceeds of such sale remaining after paying all sums due from to the said holder or holders, or to his or their order. And it is further agreed that the holder or holders hereof may purchase at any public sale. Due . (Form 110) (Collateral Security Form No. 2.) BOSTON, MASS., 190 . after date, for value received, .... promise to pay to THE TRUST COMPANY, OF BOSTON, or order, at said Trust Company, Dollars, having deposited with said Trust Company, as collateral security for payment of this or any other direct or indirect liability or liabilities of to said Trust Company, due or to become due, or that may be hereafter contracted, the following property, viz. : the market value of which is now $ , with the right to call for additional security should the value, in the judgment of the president, vice-president, or treasurer of said Trust Company, decline ; and on the failure to supply the amount demanded, this obligation shall be deemed to be due and payable on demand. With full power and authority on the non- performance of this promise or the non-payment of any of the liabilities above mentioned, or at any time or times thereafter, to sell, assign, and deliver the whole of said property or any part thereof, or any substitutes therefor, or any additions thereto, at any brokers' board, or at public or private sale, at the option of said Trust Company, or its president, vice- president, or treasurer, or assigns, without advertisement or any notice to the undersigned or any other person ; and the said Trust Company, its officers or assigns, may bid and become purchasers at any such sale, if public, or at brokers' board. Miscellaneous Instrument Forms. 197 After deducting all legal or other costs and expenses of collection, storage, custody, sale, and delivery, the residue of the proceeds of any such sale or sales to be applied to the payment of any or all of the liabilities aforesaid, due or to become due said Trust Company, returning the overplus to the undersigned. (Form 111) (Ordinary Form of Proxy.) KNOW ALL MEN BY THESE PRESENTS, That the under- signed stockholder in the ; do hereby appoint true and lawful attorney, with power of substitution, for and in name to vote at the meeting of the stockholders in said company, to be held at or at any adjournment thereof, with all the powers should possess if personally present, hereby revoking all previous proxies. ". 1 Witness, (Form 112) (Form of Stock Dividend Certificates and Rights, with endorsement thereon.) COMPANY. STOCK DIVIDEND CERTIFICATE. THIS CERTIFIES that is entitled to receive Share , and is the owner of Rights, equivalent, each, to of a share of the capital stock of the COMPANY, in accordance with a vote of the directors of the company, passed January 20, 1906, copy of which appears below. Such fractional rights to be presented and surrendered to the treasurer, in amounts equivalent to one share or some multiple thereof, in exchange for certificates of stock, on or before noon, February 25, 1906. The number of such rights required to make one share of stock is 22 T 1 J . Treasurer's Office, . . State St., Boston, Mass. February 15, 1906. Treasurer. 198 Corporation Accounting and Management. " VOTED: That the 65 shares of stock now in the treasury of the Company be issued as a stock dividend pro rata to stockholders of this Company cf record February 15, 1906, and that the treasurer of the Company be author- ized to adjust all rights relating thereto, and that a dividend of 1 per cent be declared and paid on each share August 1, 1906." (Indorsement.) FOR VALUE RECEIVED, hereby sell, assign, and transfer to share , and rights, equivalent each to &\ of a share of the capital stock of the Company, subject to the vote and conditions referred to within. Dated PART XX. OFFICE DEVICES. In companies where the amount of clerical labor involved is considerable, it would be economical to install some of the principal office devices, thereby materially reducing the cost and expediting the business. Some of the principal office devices are: Combined billing and adding machines, addressing machines, adding machines, sealing machines, typewriters, perforating receipting stamps, check pro- tectors, hand numbering machines, auto coin machines, letter copiers, postal scales, tube systems, bell annunciators, filing cases, metal plan cases, etc. There are several good makes of the above on the market, all having some particular merit. The " addendagraph," an adding attachment to the Underwood typewriter machine, is one of the latest devices. The Thexton, also Bowes' sealing machines and the Boettscher and Knecht receipting machine are operated by electricity. For making or checking computations approximately, involving multiplication or division, the slide rule could be used to advantage where there is a large amount of such work. INDEX OF ACCOUNT FORMS. PAGE Stock Ledger (Form A) 11 Service Card (Form B) 29 Plumber's Card (Form C) 30 Meter Bill (Form D) 31 Fixture Rate Bill (Form E) 31 Service-Pipe Bill (Form F) 32 Telephone Bill (Form D-l) 131 Collector's Report (Form G) % . 33 Treasurer's Statement (Form H) 34 House-to-House Inspection Book (Form I) 36 Meter Book (Form J) 38 On and Off Book (Form K) 40 Cash Book, Debit Side (Form M) 45 Cash Book, Credit Side (Form N) 46 Cash Book, Controlling Method (Form O-2) 57 Voucher, Check and Distribution (Form O-l) 52 Voucher Distribution Book (Form O) 50 Construction Record, Pipes (Form P) 59 Construction Record, Valves and Hydrants (Form P-l) 60 Gate Book (Form P-2) 61 Customer's Register for five years, by months (Form Q) 166 Customer's Register for Water Works, Fixture Basis (Form Q-l) 167 Customer's Register running one year only (Form Q-2) 169 Division or Department Order (Form R) 171 Division or Department Order (Form R-l) 174 Requisition Order (Form S) 172 Daily, Weekly, or Monthly Report of Condition (Form T) 190 Perpetual Inventory (Form U) 191 Payroll (Form V) 192 Payroll Envelope (Form W) 192 Engineer's Annual Statement (Form X) 193 Treasurer's Annual Report (Form Y) 194 Annual Income Account, Electric Railway 157 INDEX OF INSTRUMENT FORMS. PAGE Common Stock (Form 100) 9 Preferred Stock (Form 101) 10 Power of Attorney (Form 102) 10 First Mortgage Sinking Fund Bond (Form 103) 13 Mortgage and Bonds issued thereunder (Form 105) 15 Coupon (Form 104) 14 Application Book (Form 106) 28 Form of Report Required by Gas and Electric Light Commissioners of Massachusetts (Form 107) ' : 76 Note, Ordinary (Form 108) 195 Note, Collateral Security Xo. 1 (Form 109) 195 Note, Collateral Security No. 2 (Form 110) 196 Proxy, Ordinary (Form 111) 197 Stock Dividend Certificate and Rights, with endorsement thereon (Form 112) 197 ACCOUNT BOOKS, FORMS, ETC. FOR MUNICIPAL OR PUBLIC CORPORATIONS made to order to any desired pattern CORPORATION PUBLISHING Co. P. O. Box 2428 BOSTON, MASSACHUSETTS tl fy^-^^ ^TL 'i^H' x' ' .^kA^ 4tti. 1 m. ^b^^^r*. K * 240730 -*, *1*- '** Kp > ''5^/v i^*'**^*^ ^M^^'fm