River Falls journal. [volume] (River Falls, Pierce County, Wis.) 1872-2019, 1913-01-16

ONS At1NC OCcA systematically enpluyGu ny
powerful organizations of capital to break
down the business of small dealers.
IaVor1te practice is to sell commodities be-
low cost In localities where the market is
shared with others, for the purpose of driv-
ing them out, and at the same time recOup
the loss by putting up the price of the
same goods in other localities where there
is no competition. In buying precisely the
same object is attained by reversing the
process. Commercial war of this sort Is
lndefensible. Small business concerns,
limited means or by cooperative societies
should be protected against tactics of this
sort; recommend the enactment of a law
at this session that will effectively put an
end to all such practices in Wisconsin.
STATE ACCOUNTING.
The accounting system now in use in
this state is the result OF many years OF
more or less haphazard and unscientifc
development. This implies no reflection
upon those who devised it. When there
were but few boards and departments eX-
erclSlng extensive administrative functions
Inere was less necessity for the adoption
on business methods in administration.
simple records of cash receipts and cash
disbursements were deemed sufficient. But
with the growth OF the state and the ad
clifton of entirely new functions 1t has
come to be recognized that the most eff
Gent administration of public affairs can
only be secured by the adoption of modern
business methods. The accounting sys-
tenn should register every material fact rel
alive to the cost of state activities The
records now kept do not furnish this in.
formation.
The present system does not show the
actual cost of government for any given
period. Expenses incurred and supple
purchased are not recorded as costs OF
operation until the actual cash diSburse-
menus are made. The books of account
do not disclose fluctuations in inventories
OF materials and supplies carried in stock
Tor current use; nor is consideration given
70 the important question of depreciation
RNNxr do hnfxxy fhn
cost of carrying on the various activities
OF state and the disbursements made for
the purpose of acquiring additional prop
erty OF a permanent nature. Under these
circumstances it is extremely difficult for
the legislature to determine upon
any policy of expenditure for the
ACQUISITION of new property. The rec
ords of the state do not contain an inven
tory of the lands, buildings and other
property owned by the state, or of ac
counts disclosing their value or cost. State
revenues are inadequately recorded; and
no track whatever is kept of the acknowli
edged liabilities of the state.
1t would of course be unfair to imply
that this system. consisting merely of cash
receipts and cash disbursements, is in use
only in Wisconsin. Every state in the
Union follows practically the same method
The question of the adoption of modern
accounting principles is receiving the at
tention Of state officials everywhere.
New Systems of Accounts.
IL has remained however for Wisconsin
to take the lead in this reform The law
creating the Board of Public Affairs pro-
comprehensive system Of accounts for the
state. This work is now being done. New
form classifcations of accounts have been
prepared for every department and inSti-
tuition. Numerous forms common to all
departments have been designed and COM
plete departmental schedules and instruc-
lions for accounting and business proce-
dure have been prepared for several of
Will remedy all of the shortcomings of the
present plan and will standardize the ac-
counting methods of the various depart
ments and institutions. 1t will not only
enforce the keeping of uniform accounts
of revenues and expenditures, but will at
all times exhibit the resources and liabil-
tiles of the state.
The plans designed by the accountants
of the Board of Public Affairs proved to
be such a fundamental departure from
former methods that it was thought de-
Sirable before approving and recommend
ing them to invite the criticisms and Sug"
gest1ons of recognized authorities on the
subject. The Board therefore called into
conference DR.. Frederic A. Cleveland, chair
man of the Presidents Commission on
Economy and Efficiency, and Mr.. Edward
l.. Suffern, of New York City, president
of the American Association of Public Ac-
countants. After careful and thorough con-
sideration, these men gave the proposed
accounting system their unqualified APP
prevail.
State is, Officio auditor. 1t is his duty
to pass upon every financial transaction
of the state. 1t follows therefore that upon
the management and organization of the
department of state will depend the sue
cess of accurate financial accounting in all
branches of the state government. The
systems or accounts provided Tor the va
riOus departments and institutions are sub
ordinate to the central controlling system
in the department of state 1t is therefore
apparent that the central system in the
off Of hn nfelrN NJ Iln
structed so as to provide for such central
control Unless this is done, there will
not be that close watch over the state S
revenues and expenditures that wise man
agement requires.
The new system of accounts when in
stalled in all departments will not only
operate to secure greater efficiency but
should bring about economies as we'll II
the plan proposed for the office of the
secretary of state be promptly adopted it
will be possible for this office to keep
satisfactory detail accounts for many of
the capitol departments. Monthly reports
from the department of state will furnish
all necessary information to these depart
mentS This will involve additional work
in the department of state and CORE
spending increase in the number of en-
ployees, but will also mean a much great
err reduction in the number of employees
now required to maintain individual book
keeping systems in the various capitol
departments.
The constructive accounting work so
ably begun by the Board of Public Affairs
has required careful preparation, and the
installation and development of the systems
in the various departments and institutions
will extend over a considerable period of
time. 1t is highly desirable that suitable
provision be made for carrying on this
work. When it is completed Wisconsin will
have a business organization comparable
to that of the best private corporations
and will have established a system of cost
accounts that will furnish the data for a
scientific legislature Beyond question
increased efficiency greatly in excess Of
the cost of installation and development
FINANCE.
During the fiscal year 1912 general prop
erty taxes amounting to $32,61O,00O We're
raised within the state. OF this amount
$28,871. 900, or SO per cent were levied
by county and local units, and $4,000,
or 1 per cent, by the state. OF the latter
amount only $1,151,00O, or per cent,
were levied for state purposes. The re
state but was Immediately returned to
the school districts, towns and counties
Not one penny collected from the people
in the form of general property taxes was
used for general governmental purposes.
1t was all either returned to the local
subdivisions or was spent Tor education
and highways.
The total per capita general property
tax levied within the state for 1912 was
$13.64 OF this amount $12.OS was levied
by the counties and local units, and $1.66
by the state. OF TINS latter sum only 40
cents were for purely state purposes. The
remainder was levied by the state but was
Immediately returned to the local subdi-
visions.
The state government therefore is not
supported to any considerable extent by
general taxation It's revenues come from
other sources For 1912, che corporation
taxes amounted to $4,546,D00, or Al per
cent of the total revenue receipts of the
state. OF this amount the railroads con-
tributed $3,594,O00, the Insurance Com
panies $715.O00, and other corporations
S237- 900 The inheritance tax yielded
1914 900, or z per cent OF the total state
revenue: departmental earnings and fees,
ST .147. 900, or 10 per cent; licenses, 1928