The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1902-05-19
MONUMENT TO ]. F. G..
City's Present Accounting System
Shaped by Mr.. Calderwood.
HE GOES TO A BIG FIELD uF WORK
His Work With the T. c. napid Tram
sit Company Prepared Him for
Larger Responsibilities.

John F. Calderwood. for twelve years
auditor of the Twin City Rapid Transit
New York, where he will enter upon his
new duties with the Brooklyn Rapid
Transit company on Wednesday morning.
Speaking of Mr.. Calderwood's ability as
an accountant and Of the new position TO
which Mr.. Calderwood has been chosen
President Thomas Lowry said TINS morn
Ing to T h e ourna /:
Mr.. Calderwood has entered upon one &
the greatest street railway propositions IN
this country or in the world, and we wish
John all success. That ne is thoroughly
qualified has been proved by the ability with
which he has officiated as the auditor OF the
Twin City Rapid Transit company during the
past twelve years His service for our COM
pany has brought him into prominence
throughout the country, and the ef1clency
which he has brought TO his WORK mas peen
one of the factors in our prosperity. 1haI
the Brooklyn Rapid Transit knows where 10
look for frst-class men and is aware where
good accounting is done and how it is done,
is proved by the action OF President TREAT
singer in sending to Minneapolis for man 10
cope with his vast and intricate proposluoh'
City Controller, 1SSS-9o.
It was in the Office of city controller
onstrated to the public his ability as
financial expert. AS city controller OF
MINNEAPOLIS. Mr. Calderwood rendered
this CITY a marked service. He found the
bookkeeping system OF the city oenclenI
and detective, with. resultant hscal evils
which demanded radical treatment AS
result of his rigid investigation and ag-
gressive report many of these defects nave
been corrected, and some still demand
reform along he lines which he outlined:
His Investigations saved the city good
many Thousand dollars at the time, ana
are still bearing fruit. Part of his sug-
gestions were followed in the revised
charter of 1892 and others are still In
demand
Speaking of the citys bookkeeping sys-
tem-:'if system it may be called in ms
report of January 1889, he said:
This system, no doubt, served its pur-
pose we'll in 1867 when Minneapolis first as
sumed the responsibility OF full-grown
municipality. This system under present
conditions sets at defiance the rudimentary
principles of bookkeeping, and as 1t now -eS-
lists is standing temptation to huge imam
cial irregularities and bunders, and source
of annoyance, inconvenience and unnecessary
expense to many of our taxpayers
To substantiate his charge, he enumer-t
ated facts. Against the special assess
ment system for sidewalk and kindred I'M
proyements he specified thirteen kinds OF
defects, resulting in the robbng OF both
taxpayer and city. His prediction that
reckoning day would come to the city IN
righting these robberies of the taxpayer,
has been fulfilled during the past year
in the shape of successful litigation
against the city by which taxpayers have
been recovering rebates for improve
ments paid for and never made or for I'M
provements for which the taxpayer was
overcharged. 1t is estimated that the az
~f LOT
may yet reach a quarter OF million
dollars.
He called attention to the farcical man
ner in which claims were allowed at that
time-900 claims, aggregating z$l90, coo, Pc
ing approved by the council committee on
claims in one hour and half, not one OF
them having been first examined and au-
dited by the controller. The tangle be-
tween the city and county finances, which
his work largely unraveled, was vast
saving to the city and a warning to fu-
ture administrations It was Calder
woods vigorous and thorough going ad-
nlinistration of the office of city controller
that caused President Lowry to seek his
services as auditor of the Twin City
Rapid Transit company at the time Of it S
enlargement into a twin city electric sys-
TEN, and Calderwood's twelve-year adj
ministration of that Office shows the wis
dom of Mr. Lowry's judgment.
Authority on AccOuntancy.
Mr.. Calderwood's standing as an &C
countant has been national for a good
many years. He was ne-of the founders
of the American Street Railway Account
ents' Association and served as it's pres
ident during 1889. During the pas
year the New York Street Railway Jour
nal, which is leading authority in street
railway finance, opened a department. O.
accountancy to which 1t invited Mr. Cal
Z derwood to accept the editorship, an in
vitation which in behalf of the account
ants association he accepted and fol
several months has ably filled. His ed.
torial leaders in this department have
been aggressive from the start in advo
.cacy Of high standards of American &C
counting. His recent phillippcs agains
stock watering and in behalf of the ap
pointment of AN independent accountan
to audit the affairs Of big corporations il
the interest Of the stockholders, hav
awakened marked interest in fnancia
circles. His idea has been that the ordi
nary accountant in making an examina
ton usually acts as clerk for the man
ager.
y The Brooklyn r.. IT..
The Brooklyn Rapid Transit to whic
Mr.. Calderwood has gone in the capacit
of assistant to the president, is one Of tn
greatest street railway systems in tn
world. 1t is consolidation Of somethin
like dozen smaller systems, with owe
500 miles of track and s45000,OOO of CAPT
tai stock, and gross earnings which aggre
gate about $12 200, 900 per annum
mileage, the Brooklyn Rapid Transit oper
ates double the miles of track of it's lead
ing New. York competitor, the Metropolis
tan, and likewise double the mileage
the Twin City Rapid Transit or the CHI
cago City railway, which stand anon
the first street railway systems of tt
country in this regard In q volume
earnings the Brooklyn company is secon
only to the Metropolitan among the gres