The Birmingham age-herald., 1921-06-16
By HOLLAND

New York, June 15.-(Special) )- One thousand and fifty-four examin- CTS are employed by the government to search the books and records of American corporations, so that the government can know whether these corporations and partnerships have paid what they should pay in the form of taxes. These examiners COW CT the entire country. They will, however be occupied for a long time in making their investigations and after that has been done in prepar- ing their reports for inspection at Washington.
 The salaries which these examiners receive win in the aggregate slice off a considerable part of the re- ceipts from taxes. But these salaried payments represent only compara- lively small part of the cost which the collection and the certification of taxes that have been paid involve. A year or more ago the Washington authorities decided to organize a school in which instruction could be given so as to qualify for the work of examiners. Some rather puzzling results have followed the organiza-
  The government was anxious to add to the number of examiners. but was also determined to appoint none. but qualified men for this work.
 Several hundred joined the school. Many of them were certified ac- countants They were competent to make investigation of the books of corporations and to audit accounts. But they speedily discovered that qualifications of this kind did not avail with the government. For the governments method of making ex- aminations differs from that which has been accepted as sufficient qualification for a chartered account tant. Why the government adopted a different plan is known only to those in authority.
 As a result of the examinations which followed a course of two months at the government school only 54 were found qualified Not more than 25 per cent of the char tered accountants passed the exami- nation. Not all of those who entered the school remained until the course was finished. Some were discouraged and withdrew, but considerable number gave up the schcool not so much because they were discouraged as because they were satisfied that the governments method would never do for a chartered account who was engaged to examine the books and to determine the assets and liabilities of a corporation.
 A Single Example
 One example of an experience which New England corporation not engaged in manufacturing, but in a very large wholesale business has recently met with, may well il- lustrate the kind of examinations which the government is now caus- ing the .examiners to make. This cor poratior took utmost pains and cm- ployed hfShl. competent service so that it might discover what its tax should be. This work of itself en- tailed considerable expense as it has done with all corporations which | have made reports and have paid taxes.
 But the( e(government was not satis- fled, although the business reputa- tion of this firm was of the highest. It's credit has always been Al and yet one day few weeks ago there l appeared In the office of this com pany man who said he was a gov ernment examiner anC had been in- structed by the government to make exhaustive investigation of the cor poration. As he expressed it. 1t was his special duty to ''comb out" the expense account. He called for cash books running bac': to 1916. He scrutinized every item and made comparison between the entries For one year and the entries for other years. In the expense account he found various charges due to the cost upkeep and operation of auto mobiles, two electric cars and the cars also used by the salesmen. He went back to the first cost. of each of these cars. Then he checked off he expense account wondering
 whether the depreciation had not been % greatly allowed He compared | the first cost of the autos and elec- sric cars with their present day value. He traced back from 1921 to METAL MARKET
 New York. June 15.--Coppe, quiet,