The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1905-08-17
P. S. C. IS me- 'THOD
OF BOOKKEEPING
City Auditor Fonal ian and
Expert stainsby Find
ItPerfectly Comprehensive
THREE KINDS or REOERTS
THREE KINDS or REoERTs
INVESTIGATION EXPECTED TO
CLEAR ALDERafANIC MINDS OF
ERRORS In REGARD TO RAIL-
WAY FIGURES. asss.
Especial to THE Jersey city News,

Especial to 'aThe Jersey city News.'')
NEWARK. Aug. II, 1865. With the
plan of procedure mapped cut By sAsidd-
lstor Forman and City Expert Stainsby
for the city's examination OF the ac.
counts of the Public Service G|erBoya ticn,
showing the income fross the trolley hzes
and the method OF ceEsputiag the money
due Newark under the provisions of the
5 per cent. ordinance, 1t is anticipated
that the information desired viii be OBJ
tanned within menth's time Beth of
the city oficials Tuesday afternoon
went over all the accounts ussed in con-
nection with the operation of every line
affected by the 5 per cent. ordinance,
and without difficulty graspest the com
pany's method of book-keeninet. Mr.. For
man says the plan is most systematic
and comprehensive.
The receipts are Of three kinds-cash,
tickets and transfers. EACH line has
sheet called the daily gross reeeipt sheet,
on which is entered the condition Of the
register at the beginning and end Of the
run of every car. There are separate
columns for the amount of actual cash
fares collected the nunAber .of tickets
collected, and the number Of transfers.
These three columns are checssd up with
the condition Of the registersf,pr the run
| in question, ana if there are any short
ages the amount is entered in d separate.
column and the conductor doiketed fer
the amount.
The totals of each column are trans
ferred to separate accounts. and the
moneys of each account credited separ-
ately and kept in different banks. The
auditor calculates the cash value of the
tickets collected. At the end pf the fis-
cal month checks for the total amount of
money represented in the collection of
tickets, and for the tetal smouAt of
shortages are drawn up on the respective
accounts and then turned over to the
cash account
1t is not possible to tell until the end
of the month just what the cash value of
| the actual gross. receipts are, but then by
a mere reference to the accounts it can
| be seen. Mr.. Forman says the system
of checking back is both simple and ef
fectiye. He says he has been auditing
the per cent. statements Of the trolley
company for four years and he has yet
| to find an error in the process of figur-
| ing.
The corps of clerks employed by the
city will concern themselves with the ac-
counts mentioned only They will pick
days at random and will in all take as
test forty days out Of the tetalnumber in
/ the year. That will suffice to show, Mr..
Forman says, if the metafsd Of computa-
tien is followed throughout.
With the results of the investigation,
Mr.. Forman says he hopes 10 disabuse
the minds of some Aldermen and large
portion of the public Of the false belief
| that there is difference. between gross
earnings and gross receipts in railroad
parlance They both mean the same,
Mr.. Forman says. in the railroad sense,
and he can call upon scores of disinter-
ested railroad men to saDstantiate his
statement.
/ The ordinance under which the tax is
\ paid reads that the trolley e,4apanies
| shall pay per cent. of its gross earnings
within the city limits. Many people are
| possessed with the idea that gross earn
ings in raflroading means the earning
less fixed charges, and that the Public
Service is paying accordingly. but Mr..
Ferman says such is not the casIe
All railroads, without exception, says
Mr.. Forman, take gross earnings TO
mean all that is received from! traffic
with no 'sif'' on and attached The
Public Service Corporation 50 under
stands the term. Mr.. Forlnan says. and
has never attempted to put a different
construction on it.
ARR van 0fgMfa FAST faR WEST