The Washington times., 1907-03-13
MONTHLY REPORTS
TO Be REQUIRED
FROM RAILROADS
Interstate Commission Ar
ranging Uniform AC-
counting.
New System VIII Be In
augurated on July
First.
Prof. Henry c. Adams
Will Be in Charge Of
Statistics.

Beginning July l. according TO an
nouncement just made at the Inter
state Commerce Commission. the rail-
roads will be required TO make monthly
statements of their earnings, expenses,
etc, 70 the commission, In accordance
with the rules which have been pre-
pared for this purpose under the direc-
ton Of Prof Henry G. Adams. in charge
of the statistics for the commission.
This will mark the Inauguration Of the
Governments real supervision over the
whole accounting processes Of the rail-
roads. and it is regarded as one of the
most important things brought about by
the new law.
Heretofore railroads have made re-
ports when they pleased and IN what
ever form they pleased. or have made
none Un0er the new arrangement they
must all make reports by the 18th Of
each month. covering all business OF the
preceding month; and these must be
made as the deductions OF an absolutely
identical system Of accounting. There
Will be 20 variations in bookkeeping
methods. no possibility of covering huge
earnings for year or two in order to
make a turn in the stock market on
the strength Of big melon" no oppor-
tunity for misrepresenting the condition
Cf the company's business in any way
If one company shows an increase OF
revenue while a competing one shows
decrease, Il viii be known by every
investor that this reflects an actual
condition of business, because the fig
ures for both viii represent exactly
the same balancing Of items.
Committee of twenty-five.
August perfecting this new accounting
and reporting system. He hoped TO es-
tablish the monthly reports January /:
then it was postponed TO April, and now
II has been put off to July l, when It
will positively be started. During this
year DR.. Adams will have been in con-
ference repeatedly with committees of the
accounting officers OF all the roads in
the country. He has a committee in
Washington this week working out
some details. Last week a committee
Of twenty-five repre- senting another di-
vision Of the accounting service was
here.
The first matter taken up was to agree
On classification Of expenditures for Op-
Grating expenses. Some roads have been
accustomed TO build depOts and extend
lhelr tracks and charge il to operation
or maintenance. The problem Of draw
Ing line between proper operating &C
counts, main tenSnCe accounts. and i'm
FroNement accounts was one that re-
CURED months of consideration. When
II came 10 classifying revenues il was
no easier Are the revenues received.
for instance, from the lease OF a section
OF track for joint use by another road,
TO be rated as revenues from traffic2
Shall the maintenance OF that track be
charged in the same way as another
section. from which no rental Is re-
celNed. There were found to be al
n est as many methods Of accounting as
there were instances of this sort OF
thing. Likewise. terminal charges were
accounted In al kinds Of ways.
Railroads Gladly Helped.
All these things had TO be reduced to
the basis OF absolute uniformity. Co
operation Of the accounting officers was
necessary. and it was finally secured.
AS result, there has been spent on
this work OF figuring out the new sys-
TEN a large share OF the time. for eight
months past, of hundreds OF the most
highly paid experts in the country-ar
OF II contributed by the railroads II
would be interesting to know now much
money the time and expenses Of these
men would represent 1t has been freely
given to the work Of complying with
the new law, and everything 10 dat in
oicates that there viii be frank and
honest effort to agree on the new basis
of accounting.
These monthly reports. when received.
VIII be Of the greatest concern to in
Vestors. Whether the commission shall
allow its statistical department to Give
them out To the public and thus become
the greatest financial news headquar-
tiers in the country. is one of the details
not yet fully worked out. There are
involved here possibilities Of scandals
and trouble such as the commission is
determined 10 avoid; but Just how to or
ganize the matter in order 20 prevent
possibility of the commission being
mixed up In such matters has not yet
been settled.