The Topeka state journal., 1902-06-09
RAILROAD NEWS.
Auditor H. C. Whitehead, of
Santa Fe, is an Author.
His Book on Railway Account
ing is Published.
TALKED TO STUDENTS.
Subject Originally Handled in
Form of Lectures.
W. J. Healy Speaks Highly Of
the Book.
TALKED TO STUDENTS.

Among the railway accounting Off
rials of the country. none stand higher
than r. c. whitehead, the general au-
ditor of the Santa F'e, who has just re-
tired from the presidency Of the As
ISOLATION Of American Railway Account
ants
Mr. Whitehead has been appointed
chairman of a committee of five who
went to Washington as the representa-
tive Of the accounting officials of the
country, and protested to the Interstate
Commerce Commission against the re-
cent demand for more complete statisA
tics from American railways The as
ISOLATION takes the position that the
statistics required win at best be mis-
leading and Inaccurate and to COM
pile them VIII cost the railways about
81 600 ,000 annually.
A book is also just off the press of
which Mr.. Whitehead Is the author The
book viii be Of great interest to all
railway men in the accounting depart
ment. Originally the matter IN the book
was delivered in the form of two lee
lures to the students of the School Of
Commerce Accounts and Finance, OF
the New York university. The authOri-
ties of the school have had the address
published In full In the address in
question which required two full even
ings for its delivery. Mr. Whitehead
gave in great detail the outline of the
vogue in the United States.
W. J. Healy, auditor of freight re-
ceipts of the Santa Fe, in speaking
about Mr. Whitehead's book to a re-
porter for the State Journal said: Il
have read Mr.. Whitehead's book, and
believe that anyone interested in rail-
road accounting viii be benefited by
so doing. Mr.. Whitehead understands
his business all right and he gives a
discussion OF the subject of accounting
which is not only technically correct
but which is practical He takes up
the various accounting departments
separately, and describes the work done,
concluding his treatise with a descrip-
tion OF the general balance sheet of the
company finances"
Beginning with the details ofaccount-
ing in the passenger, freight disburs1ng
and claim departments. Mr. Whitehead,
IN the printed address, leads his expOsi-
tiOn up to the general books and to the
1ncom account and the general bal
ance sheet, as the cap sheaf Of the
whole scheme OF auditing. The Railway
Age calls attention to one or two points
in the latter part Of the subject because
of their bearing upon ultimate results.
1T is sound and good practice" Mr..
Whitehead says, for q railway current
ly to make provision in its accounts for
rolling stock, which is constantly wear
ing out and being destroyed, and for the
renewal of rails and erossties. The
amount of such reserves may be either
set aside in trust. or invested. or re-
main in the working capital of the com
pany. In the latter case there is no
separate showing Of an asset over
against the reserve liability" This de-
claration of sound and good practice"
IS commended to the attention of the
many companies that stin fall short of
its precepts, says the Age. one Of the
Eravest defects of railroad financial re-
turns. especially in hard times, is the
oversta atenent Of net earnings by the
understatement Of necessary renewals.
AS a safeguard against this temptation
nothing is better than an established
system of instant charges to operating
expenses OF the cost Of replacement OF
destrOyment equipment or of worn-out
or Wearing-Out rails and ties. Mr.. White
head even mentions lone large system
that goes so far as to provide for the
replacement of buildings and bridges
through reserve accounts.
That such reserve funds may be seen
to be reserves, and not bookkeeping dc-
tions merely, as might otherwise hap
pen, the former of the two methods OF
trea tment mentioned by the lecturer ap-
pears to be the soundest and best prac-