The sun., 1908-08-05

They Object 70 Account syytem Proposed
by Public service Commission.


by Public Service Commission.
ALBANY. Aug. 4.-Commissioner Eustis
of the New York city Public Service Com
Public Service Commission to-day met
| representatives OF the trolley roads who
| want a revision Of the plan for q uniform
| system OF accounts for street and electric
railways which the commissions. have
adopted with a view OF learning the real
financial operations Of these corporations
| each year. At the end Of the meeting
written suggestions Of changes in The form
OF report were invited.
An argument against the system was
that retroactive part requires the re-
casting Of capital accounts from June 20.
1907. and the opers ting accounts from June
30. 1908. The companies object to the
| short time within which II was proposed
panies contend that it would be impossible
construction Of their bookkeeping forces.
Strong opposition was made to the re-
auirement Of a depreciation account,
month Of the amount estimated to be neces-
sary to cover such accruing wear and tear
as Is economically incapable Of repair.
Henry j. Pierce Of Buffalo. president OF
the International Railway, read 2 paper
ton, declaring the proposed change TO be
unnecessarily violent. Mr.. Pierce sug-
gested the establishment OF a permiasive
depreciation account. TO be in the dis
erection OF the board OF directors OF the
railroad company.
Howard Abel, comptroller OF the Brook
lyn Rapid Transit system, declared that
the proposed system Ia not susceptible OF
practical application and would be costly
to maintain. He said the text OF come
Of the accounts is stated Iii such ambiguous
terms as to be inoomprehensible without
minute study of the classification; that
the income account and balance sheet con-
tains so many new and heretofore unheard
Of account definitions that a layman would
have difficulty in deciphering the import
OF either.
He said that the enforcement OF this pro-
vision would end in costly litigation and
cedure would simply be forerunner Of
disintegration.
H. M. Beardsley Of the Elmira Water.
Light and Power Company, said the new
system would require double clerical
force and would impose a great burden
on the small companies.
Comptroller W. II. Davies Of the Della
ware and Hudson trolley propertiesi asked
that the matter he held in abeyance until
the Interstate Commerce Commission sys-
tenn OF accounts had been decided upon.
Chairman Stevens said that to his knowl-
edge one oompsny having annual gross re-
ceipts of 500 600 had admitted to him that
the only bookkeeping done by the COM
check books and time book by boy,
The chairman said that the commission
In December last announced its determine
ton that a depreciation account should
be required in the reports Of all companies
subject to its jurisdiction. He said It has
been shown to the satisfaction Of the oom-
mission that had a number Of companies
been required to keep a depreciation 40
count their condition at the present time
had TO 60 down into their pockets to re-
habilitate properties.
p" He said the commission was firmly Of
the opinion that the depreciation account
should be required, and that on this ques-
ton there could be no debate. He said
that too often stockholders had demanded
dividends upon street railway properties
where there was In reality nothing to
warrant a dividend.