Evening star., 1912-09-09
NEW PLAN Of AUDIT
Method Of Handling the Issue
of sc, 600, 600 Money Orders.
SAVES LABOR AND EXPENSE
Auditor Kram Designs Mechanical
Electrical Devices.
SYSTEM IN OPERATION JULY l
Avoids Delay in Completing Ac-
count by Use of Cards and
Tabulating Machines.
SYSTEM IN OPERATION JULY l


fected in the method of auditing the
eighty-six million money orders sent an
nually to the auditor for the Post Office
Department by the use Of mechanical
electrical devices, with almost human
ingenuity, which have been devised by
Charles A. Kram. auditor of the Treas
ury for the Post Office Department. The
new system has reduced the expense OF
running the Office 100000 annually, and
Mr.. Kram is so enthusiastic over its sue
cessful operation he predicts it will rem
der additional clerical assistance un-
necessary for many years to come.
So far as the public is concerned. it is
very simple matter to procure money
order and to have it cashed The appli-
cant for an order presents a blank ap-
plication giving particulars. together with
the amount Of the remittance and a few
cents for fees. He receives little blue
slip Of paper with a receipt. The slip is
sent to the payee. who presents it at the
post Office where it is cashed. and the
transaction is at an end.
Two records OF the transaction, how
ever, are sent TO the auditor for the
issuing postmaster, giving the particu-
lars of the issue. another from the pay
ing postmaster in the form Of a receipted
voucher and claim for reimbursement for
the amount named in the money order
Under the Old Method.
With the exception of few adding
machines no mechanical devices have
been heretofore employed in the audi
tors Office for performing the routine
work, the methods being substantially
the same as when the system was es-
tablished in 1864. The paid orders
were received and checked by hand
against the issuing postmaster's state
ments. Under this process year was
required to complete the audit. The
Dockery commission, in 1894, attempt
ed to shorten this time, but the plan
had to be abandoned as impractical.
Under this process each money order
had to be handled nine times, so that
in the auditing Of the SS,0OO.Q00 orders
during the fiscal year ending June 80.
1872, there was the equivalent Of
handling one order 774,000,00 times.
Some time ago Auditor Kram sub
ury plan which, in his opinion. would
materially reduce the work Of auditing
the orders and lessen the expense.
This plan involved tabulating sys-
tenn, which the Secretary approved.
with authority to put it into operation
July l Of this year.
For twelve months previously the au-
ditor has been busy with the preliminary
work, which required the giving OF each
post office in the country a number by
which it would be thereafter designated
in the tabulations and which is printed
in the annual postal guide. So well were
the details worked out in advance that
July l last the force engaged In assort-
ing money orders and examining money
order statements entered upon it's new
=, xr,{@1 No, q
This mechanical tabulation is effected
with small cards and four types Of ma
chinese machines, gang
punching machines. automatic sorting
machines and automatic tabulating ma
chimes. About 24O employees are required
to, do the work.
Division of "Fields."
The cards for auditing money orders
are divided into what are called fields. ;"
and each field" is arranged on a number
code for recording the name OF the pay
ing office. file number, name OF issuing
Office, number of the money order. month
Of issue, amount named in the order and
amount Of fee paid for it.
The card-punching machine is operated
on a desk or table by pressing keys. as
with an adding machine, with the fingers,
thus perforating the cards with round
holes on numbers corresponding with
those on the keys pressed. Only one card
can be perforated OH q machine at q
time. After being thus perforated the
gang punch" is used to perfOrate in a
similar manner the particulars common
to a number of the cards, thus perforat-
ing the record by card perforatiOns shown
by the original money orders. The COM
pleted cards are then assorted into nu-
merical groups by offices of issue with
the automatic sorting machine. Each
group is subsequently run through the
automatic tabulating machine and the
debit and credit entries are automatically
totaled.
Cards of Another Color.
For outstanding money orders the par
ticulars secured from the issuing post
masters lists are recorded on cards of
another color. Under the machine tabu-
iating system the final settlement of
money order accounts can be made in
three months. Heretofore it has required
nine months for a complete audit.
BY the use of these machines and this
system the auditor will hereafter be able
to state accurately the number and
amount OF the money orders outstanding
for one year or more, which at the pres
ent time, with the facilities at his COM
mately 100000.
This new system, it is declared, was
installed without causing the removal OF
a single employe from the service.
0YS1FRMFN lip IN ARMS