The Washington times., 1906-11-12
ORcE RAILROADS
TO OPEN BOOKS
Uncle Sam Must Know
How Business Is
Conducted.
AUDITORS IN CONFERENCE
Summoned by Interstate Commission to
Devise Uniform Bookkeeping
System,

Very quietly and without attracting
unnecessary attention, the great task
entrusted by Congress to the Interstate
Commerce Commission of supervising
the accounting system and securing
publicity of the financial and general
business concerns Of the railroads is
being organized. II is perhaps the most
complicated task entrusted 10 size COM
mission by the new rate law. The law
is as broad as could possibly be asked
This division of the commissions work
has been placed TN charge of Prof Hen
~ G. Adams, late of the University OF
Michigan. lie is one of the highest
priced men in tile Government service,
receiving $4,000 a year.
There have been in washington for
some days, for conference among them
selves and for consultation with Pro-
Adams, committees representing the
National Association OF Railway Audit
ors and tine National Association OF
railway Disbursius Officers. holding
regular meetings TO consider a series
OF questions that Prof. Adams has sub
mitted To them.
Ia taking up his work hc enlisted at
A!ie start the cooperation of these men
lhe best equipped in the world 10 as
hlst In the practical detail OF devfslpg
4 system ui uniform buOkkeepin. blank
toi '-IS' cldSSIltationS of accounts. meth
"u OF hakiuS reports. etc.
Systemizing the Work.
In taking Up hia work. Prof. Adams
has designed to divide it systematically.
" present he is working on the problem
o. Classifying operating expenses. This
/" one of The Very largest problems, be-
o1Gse At Involves determination OF
"-'-'t expenses may be charged 10 opcr-
"unS and Nnat TO maintenance. re-
hcNai. he-Jcrmeut. etc. American rail
."dus Nave been uOtdTioCsil fuea4tt b,
bits classification. They have btte t,-our
10 ciiatsC TO operating elueuse an inn
..,.--CC u. 'is'L eLlst Oh Expenditures for
permanent improvements. even .oi. ~
tensions, upuuic tracking. f.fr,4ssa 81
ts.rniaals. etc ''
-, IE9s the putLir IS privileged lo pay
,.sn -. y. '"5le ,ace I'D RACES on cur
iSii' I.'l-' itllt thr-aecGnd time in in
Italizauou. '"p
or. ADAMS proposes q settle once for
a.. What Is proper charge against
-. -lt-t.7 VN4-natS- Ine intent uI the
80 IA" NV .~ INA! The public shall know
A,'stI Is conc with its money
-NrA- aiisF thls problem -Gf cfrsssf,--
lgE operating expenses comes Tbof
SidSA-l} y .Eg and accoUnIing for Income
.'i7 .!Nt wise presents many compIica-
l-,iiii. -AIlri II comes the question of
- tt~.i-e ile c4oitai accounts OF rail-
,dGs 10 tc-ermir@ what is live ava
Nl-t .Jead' caDi.aI
ether Complicated Questions.
There are Other cases SIN more co-n-
pHeatee rs w-'a holding conlosny
mas p1rr of the stocks o. bonds of an
underlying company, while the remain
der IS aoating and In the hands or the
investors IL is then necessarvsta de-
seIAIte To what extent the issues over
zap ana To make the proper deductions
the making or forms blanks deter
IllAali'h or financial methods etc in
tluehJ in The mana cement of roads and
dic cHldDlislIneHL OF uniformity rr,-
Sgnts another phase of Dr. Adams task.
rms includes. in general. all the at
counting processes that lead up 10 the
production OF balance sheet When
tHgSt are unified and standardized the
laldlIce sheet OF one company viii mean
the same as that OF another
Atoms with this work OF sUaudardiziug
.uld stemlzing wiz probably go the
making or a valuation of the physical
property of the roads This is CON
SIdefeu now an absolute necessity i'm
ofder that the great work in the com
mission hands may DE carried on in
diligently ''i ia
II is not yet determined when the
s} stem of uniform accounting methods
shdh be put into cffe-t 6u- excellent
progress IS masking, and by thr wear
~ y; 81 i7 Likely go hc in effect. perhaps