Los Angeles herald., 1906-09-18
CHANGE SYSTEM
OF BOOKKEEPING
MUNICIPAL METHOD WILL BE
REVISED
Civic Organizations Make Reeommen-
datlon to city Council to Expend
$4,000 In Resrrsnsins Plan
of Accounting

Tho municipal bookkeeping system
win he revised 1t Will cost Sl0,Vyv Sl, W
do IL and expert accountants wiz VIII &c c.,
10 he imported from New hork anu ,,a,,i-
tS.arciaco Int the council is unah,
l,,o,,s In the belief that when the woIk
~ ,.,V Acne II will more than pay for itsell.
u, revising the bookkeeping system
49, council acted on a reCommenuatloll
,,,sde nv a. committee composed ol i ollO
.I.a,, liz, each from the chamber of CONF
,nerce. Merchants and ManutaCturel9
association and the Municipal ieqs
Mi. committee was composed OF j. VI
Schneider. A. B. Cass ana -. -, ~
finger. The report is as follows: o,,...
~ tbe honorable Council of the CllS
Of Los Angeles.
The special committee on municlp'.
accounting appointed at your reques'
hv the chamber of commerce, the MeI
cSants' association and the Munlclpal
league beg to report progress ana Ger
tain recommendations; ,..oo &c
~ understand It, is to report to your
honorable body a plan to accompllsh
tbe reorga nization of the citys account
inc svsteo The experience OF otner
ecities. as ascertained by TINS conlInIt
rec shows that the service of account
ing experts of recognized standlng anu
practical knowledge of this line Oh WoIk
are needed to make a success oil suCh
an undertaking. ,.,.,ol,+,.
while the accounts of municipality
must cover in their thoroughness, &C
curacy and detail much the same
ground as the accounts of any larSe
business enterprise to these FEATURES
must be added certain requirements OF
publicity and compliance with laws
that are unique in themselves ana lhdt
vary with the character and ordinances
of different cities and the laws OF oil :
ferent states, whereby it happens that
municipal accounting as practiced IN
modern up-to-date cities is very nearly
a science in itself.
This committee has received appi-
cations from many local accountants
of excellent standing, who desired to
undertake the work, but our investiga-
tions in the subject has led us to the
conclusion that it is best for the city
that an enterprise of such magnitude
should be placed in the hands of some
one of the large accounting firms OF
general practice who have made spe-
cialty of municipal work and have men
trained in that particular line and we
find that many disinterested local ac-
countants coincide with this view. There
are two firms answering TO this de-
scription, which are Haskins Sells
of New York, who have branch houses
in London, Chicago, St. Louis, CleVe-
land and Pittsburg; and Jones. Caesar,
Dickinson, Wilmot G. Company (Which
has recently been combined with Price,
WaterhOuse & Company whose princi-
pal house is in New York, with branch
houses in Chicago, Pittsburg, ST. Louis,
San Francisco, London and Melbourne.
We have called upon both these
houses for propositions, describing the
1tn.-r 6ar LIZ
and have the correspondence ready fol
the inspection of your honorable body.
The proposition of Jones, Caesar, Dick
enson, Wilmot & Company is the most
favorable.
This firm is very widely known, and
its standing for reliable, high class
work is above question. 1t does the ac-
counting work for the United States
steel corporation, the General Hlectric
company, the Atchison, Topeka e. Santa
Fe Railway company, the New York,
New Haven & Hartford Railway COM
pany. and, together with the Haskins
& Sells people, is now engaged in re-
organizing the accounting system of the
equitable and the New York Life In
surance companies. Here on this coast
it has charge of the books of the Cali
fornia Gas & Electric corporation, the
Alaska Packers association, the San
Francisco Breweries Limited, and many
others 1t has within recent years COM
pleted the reorganization of the ac-
counts of two cities of about the size
of Los Angeles, viz, Minneapolis,
Mimi. and Rochester, N. Y. There is
no question as to the competency OF
the firm for work of the sort proposed
for this city. The fact that it man
tains house in San Francisco gives
1t an advantage in carrying on the
work, although they propose to send
their chief municipal expert here from
the east to take charge.
This firms proposition is that the
total cost is to come inside of SIS. 900
on the basis of $25 per day for the
manager in charge, and SIS per day fol
each accounting assistant employed
Plus travelling and hotel expenses In
other words, the city is to pay for the
time and expenses of the men en-
ployed on guarantee that the total
is not to exceed $4,000. If this work
develops no special difficulties the city
VIII get the benefit of the saving with
In that figure
In addition to this expense there will
De apout $1,000 for new books, printing
of forms, etc.
The Haskins &, Sells figures are $4,000
higher, but this is an estimate. not a
guarantee, and the charge is $50 a day
Tor the supervision of PRINCIPALS.
We would, therefore, recommend that
your honorable body authorize the city
attorney to prepare contract with the
nrm or Jones, Caesar, Dickinson, Will
mot S Company, in accordance with the
proposed terms and that the sum of
$4,000 be set aside out of the Continent
fund of the budget to meet these ex-
penses as they accrue, that the citv
clerk be directed to keep a record Of
the time of the employment of the ac-
countants and to pass upon the EXPENSE
accounts. Respectfully submitted,
]. NJ. SCHNEIDER.
A. b. CASS,
G. II RIT,rrIArcrH