Wausau pilot. [volume] (Wausau, Wis.) 1896-1940, 1913-01-21

down the busineTs Of small dealers. A
fayorite practice L. to sell commodities be-
shared with others, for the purpose Of driv-
ing them out. and at rhe same time recoup
the loss by putting mp the price Of the
same goods in other localities where there
same object is attained by reversing the
process. Commercial war of this sort is
indefeHsible. Small business concerns.
whether they be owned by individuals of
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 unScientihc
development. This implies no reflection
upon those who devised it. When there
We're but few boards and departments ex-
erclSing extensive administrative funStionS
there was less necessity for the adoption
of 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 :
dition of entirely new functions it has
come TO be recognized that the most eff
cient 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
atlve to the cost Of state activities. The
records now kept do not furnish this in
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
operitlon until the actual cash diSburSe-
ments are made. Tie books of saccount
do not disclose fiuctuations in inventories
OF materials and supplies carried in stock
Tor current use: nor is consideration given
to the important question of depreciation.
NO distinction is now made between the
cost OF carrying on the various activities
of state and the disbursements made for
the purpose of acquiring additional prop
erty OF permanent nature. Under these
circumstances it is extremely difficult for
the legislature to determine upon
any policy OF expenditure for the
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 acknowi-
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
tentlon of state officials everywhere.
New Systems of Accounts
1t has remained however for Wisconsin
to take the lead in this reform. The law
creating the Board of Public Affairs pro
vlded that u should work ont new and
comprehensive system of accounts for the
state This work is low being done. New
form classitications of accounts have been
prepared for every department and insti-
tuition. Numerous forp,S common to all
departments have becl designed and com
plete departmental schedules and instruc-
1onS for accounting and business proce-
dure have been prepared for several of
- nnKU CE St AV M
viii 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 habil-
tiles of the state.
The plans designe, by the accountants
of the Board of Public Affairs proved to
be such a fundamental departure from
former methods that 1t was thought de-
slrable before approving and recommend
ing them to invite the criticisms and sug-
gestions 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
accounting system their unqualified APP
proval.
Under the constitution the Secretary of
State is ex-officio auditor. 1t is his duty
to pass upon every financial transaction
of the state. 1t follows therefore that upon
the management and organiza ton of the
department of state will depend the sue
cess of accurate financial accounting in all
branches Of the state government. The
systems of accounts provided for the va
rious departments administrations are sub
ordinate to the central controlling system
in the department of state. 1t is therefore
N
office of the secretary must be recon
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 III all departments will not only
operate to secure greater efficiency but
should bring about economies as Well If
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
er 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 considerable period of
time 1t is highly desirable that suitable
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
these changes will result in economies and
increased efficiency greatly in excess OF
the cost of installation and development
FINANCE.
During the fiscal year 1912 general prop
erty taxes amounting to $32,610.000 we're
raised within the state. OF this amount
$28,S71 ,000 or 80 per cent were levied
by county and local units and S3,739. 900
or IL per cent. by the state. OF the latter
amount only $l15I, 900. or 3 per cent,
were levied for state purposes. The re-
mainder was levied and collected by the
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 for education
and highways.
The total per capita general property
tax levied within the state for 1912 was
by the counties and local units, and 81 SO
by the state. OF this latter sum only AS
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 eny considerable extent by
general taxation Its revenues come from
other sources For 1912 the corporation
taxes amounted to $4546,000. or Al per
cent of the total revenue receipts of the
state OF this amount the railroads con
tributed S3.594.000. the Insurance Com
panies S715,000, and other corporations
$237 900 The inheritance tax yielded
SS73.e00. or per cent Of the total state
revenue: departmental earnings and fees
S1.147, 900, or 10 per cent; licenses $528.-
600 or per cent; charges for charitable
and penal institutions S252. 600. or per
cent. and all other sources s135.000 or ]
per cent making a total of S1l.13O,000.
Taft Names Postmasters.
Washington, ID. president Taft
has sent to the senate for coIfirna-