New-York tribune., 1909-11-01
UNIFORM PAY PLAN
TO BE USED IN ALL
NAVY YARDS.
Success Largely Due to Pay
master General Rogers and
admiral S7cift.

Washington. Oct, $50 successful has
been the trial of an accounting department
at the Boston Navy Yard that Secretary
Meyer Of the navy has decided TO establish
uniform central paw accounting system
at all navy wards in the country. The CEN
trail feature OF the plan is independent re-
eponsibility and accountability for the
proper record OF expenditures OF money for
all labor and material used in each navy
yard and for work done on board ships of
the navy.
1t has been largely due to the efforts Of
Paymaster General Rogers and Rear Admf-
ral Swift, comma ndant of the Boston yard.
that such good results have been secured
from the plan, IL is said. They are conf
dent that il will prove equally successful
when applied at the other yards.
On June the Lsutze board, appointed
BY Secretary Meyer for the purpose Of con-
stdering the matters not unanimously
agreed on in the Sperry board, made its
report 1t recommended as advisable the
trial OF accounting department and
stated that the Treasury Department be-
lieved that new legislation was neces-
sary; also, that the officials of the Treasury
Department agreed with the board that it
was advisable 10 try this plan first in one
navy yard.
PLAN FREQUENTLY DISCUSSED.
The paymaster general of the navy has
advocated a separate system OF cost ac-
counting for some time. The idea was first
broached TO the Navy Department in 1903
by Rear Admiral Harrington, and has been
frequently discussed since and its estab-
Iishment advocated, but no actual step
toward putting such a plan into practice
was taken until last July. when, by an
order of Secretary Meyer. a separate ac-
counting system under the commandant
was started at the Boston navy yard Be
fore October l all matters affecting the cost
OF work were being handled ny the new
accounting department. That is, the ac-
counting officer made UP the payroll and
the pay officer of the yard made the pay
n1ents; in other words, the paymaster OF
the yard is accounta bic only for the pay
ment of money on the payroll and sees to
" that the total of the payroll balances the
total disbursements
A considerable amonnt of work was
necessary to straighten out existing con-
fusion and rsctify errors. Before the es-
tablishment OF the new system at Boston
Job orders of different kinds ran for in
definite times, with resulting lack of re-
sponsibility and economy. It was also
found that charges for work were often in
correctly placed, this being sometimes due
70 the indefinite wording OF the job orders.
The central feature of the plan now in
use at the Boston yard is independent re-
sponsiblity and accountability for the
proper record of the expenditure of money
for all labor and material used in the navy
yard and for work done on board ships of
the navy.
One OF the important features of this
plan is the separation OF accounting from
manufacture, thus according with the best
practice in commercial life. where account
ing is always separated. 1t is the belief
- that the manufacturing department should.
have nothing financial and that there
should be no opportunity for subordinates
TO make charges on one order to cover
an underestimate on another order. Under
the old practice the fundamental principle
that the handling OF accounts and cost
should be entirely Independent Of the
{ people who actually did the work was
4. ignored.
Now that the new method of keeping
Fs accounts and the new system OF cost keep
ing have been established at one yard q
number of other advantages are already
. apparent. Some Of those are due to i'm
proved administration and many OF them
TO improved bookkeeping. and TO the sim
{ pliication and reduction in number OF the
{ forms used IN recording the ordinary inter
d change OF business between the storehouse
= and the shops and the accounting depart
ment.
SOME OF THE ADVANTAGES.
Some OF the advantages found to exist
the following:
Substitution Of a single pay roll in place
OF two now in use.
BY the system Of balances struck daily
immediate checks and discovery of mis-
takes result, that the various returns,
including the pay roll. are kept up TO date,
and the pay roll is ready for the cashier
or paymaster OF the yard a day and a
half after the period closes for which the
pay is due
JOB orders and invoices are closed out as
as the work IS completed. and invoices
viii be completed within five days after the
closing OF the Job orders which the invoices
cover. Under the old system many months
often elapsed before the completion of in
voices.
The new system will furnish an accurate
basis on which 10 make estimates for work
i VIII greatly increase the dispatch of busi-
ness and also result in many economies,
reducing considerably the amount OF labor
involved and the consequent expense of ac-
counting and cost keeping 1t also prom
tses material Improvement in the economy
of navy ward administration through the
stimulus il gives to thorough inspection, 10
closer estimates, and to direct and thorough
accounting for materials issued from store.
The various expense accounts other than
direct labor and material are being
systematized that shop foremen will see
clearly their shop expense and where re-
trenchment will be possible. The shop ex-
penses of different shops be accurately
contrasted, so that the natural rivalry en-
nR "a A0VI VA a