The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1916-07-13
AUDIT UNDER WAY
City in Books of Edison and
Railway Companies.
NAV Not Examine Daily Slips
and Save $3.50.
EXAMINATION COVERS ALL
Nothing To Be Overlooked in
Cation Investigation.
Accountants Receive $25 a Day
in Topeka.

A clause included IN IIle CoiIei oeSI AOA
an audit of the Topeka Street railway
and the Edison Light company books
provides that the ]. E. Cation Auditing
firm, with which the contract was
made. NAV examine the daily trip slips
of the railway conductors if so author
1zed by the city. w. H. Wasson,
finance commissioner, said he had not
yet authorized the examination of the
Slips but said he and the auditing
company might find another way OF
getting the information about that
particular part of the company's reve-
nue., thereby saving $3.50.
The audit of the Mckinley books
began Monday and is well under way.
H. B. Swanson, head accountant of the
Cation firm, is in charge. The books
of the two firms here will be audited
for a period of six years, from Decem-
Der 81, 1909. to December 81, 1915.
The maximum cost will be $1,S35.
The contract provides for two ac-
countants to work on the bol<s, one to
receive SIS a day and the other $40 a
day.
May Lessen the Cost.
However, the city hopes to lessen
the maximum cost, but not examining
the daily trip slips of the street rail-
way conductors. Mr.. Wasson said the
city hopes to find a way to ascertain
the status of the slips without going
over each one separately.
The Mckinley audit, primarily, was
demanded by a number of civic clubs
several years ago and has been caus-
ing more or less discussion since. It
was brought about by Commissioner
Wasson, who introduced the resolu-
ton in a commission meeting several
weeks ago.
The city is to receive, under the
franchise, ten yer cent of 90 per cent
of the net earnings of the two COM
panieS. The street railway company
obtained its franchise in 1908 and
has not yet paid anything to the city,
claiming there were no net earnings
over the amount used for dividends
The Edison company received it's
franchise in 1905. Last year it paid
the city $4,000.
The audit will determine the amount
of the Mckinley investment here, the
amount of receipts from every depart
ment and source to be shown sepa-
rately, the amount of expenditures for
all purposes to be shown separately,
improvements made during the period
OF the audit, and the annual net earn
1ngs of the companies above the 10 per
cent earned on their Investments, as
shown by the books. An examination
of the minute books of each company
relating to their stock and a compari-
son of tie companies collections with
their bank accounts, are included in
the contract
What Examination Will Cover.
An examination of all vouchers or
evidence of payments to or from the
companies is to be made and any ir-
regularities reported to the city.
Following is the extent of the exam
1natfcn of the street railway company's
books:
Revenues from transportation.
revenues from operating ether than
transportation.
Incorporating revenues.
Expenses, ways and structures,
equipment, power, conducting trans
portations, traffic, general and mis-
cellaneous.
CAPITAL accounts, tangible and in
tangible.
Reserve accounts.
Curren taSSets.
Prepair accounts.
Capital liabilities
Mortgage liabilities
Accrued liabilities.
The investment IF the Edison COM
pany before and during the period of
the audit will be reported to the city
Expenditures are to be obtained direct
from vouchers, time slips and pay
rolls while all minutes of the board of
directors meeting and all other meet
ings are to be examined and reported
to the city.