N. A. C. A. BULLETIN

N. A. C. A. BULLETINVol. XVIII, No. 13 March 1, 1937

IN T W O SECT IO N S

Section I I • � ` '(LIBRAR'

FORUM SECTION

T h i s Bul le t in is pub l i s he d semi - monthly by t he

N a t i on a l As socia t ion of Cost Ac co un t a n t s ,

385 M a di s o n Ave n ue , N e w Y o r k Ci ty

fUH U5g IN CIINNEC"IU VH̀ITl

SUIT

A new and unique payroll methoddevised by the "Comptometer" re-search staff provides an ideal solu-tion to payroll accounting prob-lems resulting from Social Securitylegislation. The "Comptometer"Payroll Method provides for therecording of employee records withrespect to earnings and deductionsof all kinds in a simple, economicaland highly flexible manner.Outstanding features of this Method

are ( as in normal figure -work rou-tine handled by "Comptometers ") :accuracy, economy, speed and ex-treme adaptability.

For a copy of the i llustr ated six -page folder shown above, in whichthe "Comptometer" Method is out-lined, write (on your firm's letter-head) to the Felt & Tarrant Mfg.Co., 1715 N. Paulina St., Chicago,Illinois.

OUR OPEN FORUMThis section of the Bulletin is available to all for the informal dis-

cussion of technical matters of interest to our members. Includedhere will be comments on articles in Section 1, ideas and suggestionsarising out of these articles, and other correspondence in which ourmembers are likely to be interested. The ideas expressed will bethose of the individual correspondents, and all shades of opinion willbe welcomed to the extent that the ideas expressed are constructiveand of general interest.

SCRAP OR RESIDUAL VALUE

Editor, N. A. C. A. Bulletin:

"There is a tendency on the part of accountants to minimize the impor-tance of scrap or residual value in computing the depreciation allowanceor deductions." This is a statement made by Mr. Heinen at the NationalConvention last June following Mr. A. B. Hossack's discussion of thesubject "Accounting Procedure for Capital Assets and Depreciation."

It was not my privilege to be present at the National Convention, somy thanks to the Year Book for the opportunity afforded each and everymember of the organization to read and study the papers presented at thatConvention. There is a wealth of thought - provoking information for thosewho are interested in fixed assets and the accounting for the same in thepapers presented by Prof. David Himmelblau, Mr. A. B. Hossack and Mr.John H. Devitt. All three of the papers touch on vital points in the workof accounting for fixed assets.

However, the statement made by Mr. Heinen that there is a tendencyto minimize the importance of scrap or residual value in computing thedepreciation allowance or deduction attracted my attention and has causedme to give the subject a bit of thought. What is scrap or residual value?Is it the value that could be received as scrap from a dealer in junk or,in those cases where the item is disposed of for re -use, is it the resale valueor is it the place value, i.e., the value to the going business, taking intoconsideration the location of the asset?

It appears that this subject of scrap value is a subject discussed ratherfrequently during the past few years due probably to the increased impor-tance of maintaining detailed and accurate records for fixed assets so as tobe able to produce sufficient detail to support the depreciation claimed as adeduction from Federal tax. In many businesses in the past there was noattempt to maintain any sort of detailed asset records, the general ledgeraccounts showing all the detail available. Such businesses were not con-cerned with scrap or residual value. The change of law has made it im-

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N. A. C. A. Bulletin March 1, 1937

perative that some sort of supporting records be maintained if a claim fordepreciation is to be accepted as an allowable deduction from taxes. It isthe necessity for establishing in such businesses sound policies governing theaccounting procedure on subjects such as scrap or residual value which ac-counts for the quest for information.

In most accountants' minds scrap or residual value is thought of as thevalue that can be obtained from a dealer in junk or a dealer in second-hand equipment. However, there is another phase of the subject that shouldbe carefully considered which has been previously mentioned, namely, placevalue. What is the scrap value of a useless machine that weighs ten tons,located on the fifth floor of a reinforced concrete building? Depending uponits size and shape it may cost many times the value received from a dealerin junk to remove the item from the building. In such a case the itemof useless equipment has absolutely no scrap value to the going business.Other items of useless equipment may be dismantled and removed to thescrap pile or moved as a unit. Again there is an item of expense enteringinto the transaction which will partially compensate and, in very many cases,overbalance the actual scrap value of the useless equipment.

Mr. Hossack expresses his opinion on the subject when he says "Per-sonally, it has been my own experience over a good many years, that if theproperty is used its normal life, it would probably cost you more to get ridof it than the amount you will get for scrap."

There are, however, exceptions to the general procedure as indicated,for example, in equipment constructed of material of salvage value such ascopper, brass, lead, etc. Where such conditions exist, they should be recog-nized and depreciation based on the difference between the cost and a rea-sonable salvage value.

EDGAR U. WALLTCK,Lancaster Ice Co.,

Lancaster, Pa.

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March 1, 1937 N. A. C. A. Bulletin

QUESTIONS AND ANSWERSThe Research and Service Department at National Headquarters

conducts a Question and Answer Service for the benefit ofN. A. C. A.members. Practical accounting questions which cannot be answeredfrom our research files are submitted to a number of our members foranswer. The replies with names deleted are transmitted to the originalinquirer. In this section of the Bulletin will be published such of thesequestions and answers as appear to be of general interest to ow,members and worthy of their consideration.

ACCOUNTING FOR REPAIRS TO CARDING MACHINES

Question: We made during last year a heavy outlay in our cotton cardingdepartment which represented repairs long delayed and which normallyshould have been made on a few cards each year in rotation, rather thanpostponing and doing the whole job at once. These expenditures representedan outlay of about $200 per card for new flats and about $200 per card fornew clothing for cylinders and doffers. We should like to know the practiceof our textile members in handling an expenditure of this sort. Shouldit be charged to repairs for the current year; should it be set up as a de-ferred charge to be absorbed over a set number of months of future opera-tion; should it be capitalized; or should it be charged to the depreciationreserve? Also, would the practice vary depending upon whether the cardswere clothed a few each year or the work deferred and done all at once?

Answer No. 1: It would seem that this particular organization had waitedtoo long before making the necessary repairs on the card flats and clothingfor cylinders and doffers. In this particular instance, which is an exceptionto the rule, it would seem that the best way to handle the situation wouldbe to take the old cost of card flats and clothing out of fixed asssets andmake a proper adjustment in the reserve for depreciation to offset, thenreplace the amount in the fixed assets account by the new installation,thereby renewing a portion of the cards. This would also entail the adjust-ment on the monthly depreciation charge -offs.

In the ordinary run of repairs these items could be charged to reservefor repairs and be forgotten but if we should be faced with the same kindof problem as the one in question, we would be inclined to handle it asindicated above.

Answer No. 2: Reclothing of cards is an expense item. It should not bedirectly capitalized since the original cards included card clothing and there-fore the original value has not been changed. Also the original estimatedlife of the cards has in no way been changed, but the retlothing has per-mitted them to continue in use during the original expected life, as it waswell known in advance that they would require the retlothing.

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This item is frequently charged to the deprecia tion reserve by companiesshowing bad operating statements but they are only fooling themselves,since the depreciation rate is not of sufficient size to include the renewalsand repairs. Government auditors often like to see such items charged tothe depreciation reserve as it usually will help increase the taxes paid.

The item is properly an expense item and can allowably be deducted inthe period experienced. Generally, I would prefer that method as therewill be other extraordinary repairs in other depa rtments during other years,for the plant is probably suffering for lack of repairs which the manage-ment is now going to correct. If the operat ions a re a t a loss, then I wouldestimate the life of the reclothing and defer the expense over one -half theestimated life.Answer No. 3: 1. Your question does not ra ise the point of whether these

expenditures represent ordinary and necessary repairs. Since, in my opinion,the repairs are ordinary and necessary, we will proceed on the basis thatthey are in fact ordinary and necessary repairs.

2. As the repairs are ordinary and necessary, should they be chargedto expense in the year in which the di sbur sement was made or spread oversome period in the fu ture? Certainly the repair s should not be spread overthe future, as that period will have to take care of its own repairs. Themachines were permitt ed to run down, and during the period that they wererunning down the income account was not being charged with the properupkeep of machines. No doubt, this was done during the depression whileincome was off and the company was using up these machines without aproper charge therefor. Wha t the company should do is to keep the ma-chines repair ed in the fu ture so that they wi ll not have an a bnormally largeexpenditure of this nature in any one period. To amortize this amountin the future would simply be multiplying the mistake which has alreadybeen made.

3. If the rate of depreciation in the past has been sufficient to take careof repairs and it was contemplated by the mangement in fixing this ra teto t ake care of repairs, then it would be proper to charge all expendituresfor repairs to this account. However, this cannot be true or the questionwould not now be raised in this inquiry. The rate of depreciation allowedby the Internal Revenue Department has been pretty well standardized andthis ra te is so low that, in my opinion, it is not sufficient to take care ofrepairs a lone and it is, therefore, contemplated that repairs shall be charged

to expense.4. The principle involved would not vary as to whether the cards were

clothed a few ea ch year or the work defer red and done a ll at once. H ow-ever, if practical it might be proper to adopt the plan of deferring therepairs a nd having them done a ll a t one time and setting up a reserve in thefuture which will be adequate to take care of this expense. This, of course,might involve some difficulty with the Federal Government on incometax matters. On the whole, I t hink it more practica l to repair the machineswhen they require repairing and in this manner the repair costs will remainfairly uniform throughout the year.

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TH E STO RY O F VIRGINIA H OT SPRING S

1727 -1937

Location of our Eighteenth International Cost Conference,June 21, 22, 23, 24, 1937

(Did Hot Springs' historical interest appeal to yout Wait 't i t you readabout i ts "p lay" facilit ies! "Something for everyone" apparently is

the motto .)

I . G O LF

Golf at H ot Springs goes back to the purchase, in 1892, of the H o tSpr ings propert ies by the Virgin ia Hot Spr ings Company. Even before theold Homestead was remodelled a little six -hole course was laid out. Thefirst tee of this six -hole affa ir was on the identical spot where the first teeof the Homestead course is now located.

Since that time golf at H ot Springs has experienced practically all thegrowing pains of the game. Just how ma ny different architects have triedtheir hand on golf there it is hard to remember. The old six -hole affairwas changed to nine, then to fifteen, and eventually to, actually, nineteenholes; also, a complete new eighteen -hole course had been built, up to thepoint of sowing the grass, when someone discovered that estimated distances—based on the stride of a six - foot -two golf architect —were not reliable, andthe whole thing was abandoned.

For ma ny yea rs the r esor t st ru ggled a long wi th one cou rse, but i t is im-possible thus to satisfy a ll k inds of golfers. Those who wa nted trying golfdemanded the insta lla tion of bunkers, the lengthening of holes and increaseddifficulty in the course. The ordinary business golfer objected as strenu-ously to all this, and no one was satisfied. The obvious necessity for asecond course led to expensive experimentation which indicated that therewas no additiona l terra in a t Hot Springs suitable for golf.

About 1915 the idea of putting a cour se at the Cascades was suggested.One day in 1923 the management was suddenly notified by long distance tel-ephone that the Cascades property, which had long been in litigation, wasavailable for purchase and that, as promised, i t would be offered first to theVirginia H ot Springs Company. Wi th only a few days in which to reacha decision, the management asked William Flinn, the Philadelphia golfarchitect, to go down and look over the terrain to see if a course werefeasible at the Cascades. He spent a long summer day wa lking through highbushes and weeds. At the end of his ramble he announced that he hadfound sites for twenty- .three greens and wa s certain he could build a golfcourse around them. From that beginning came the Cascades course.

Now, having a second course in prospect, it was decided that the Cascadescourse was to be a difficult one comparable with those on which champion-ships are played. At the same time, the Homestead course was to be re-designed for the medium golfer, as a course on which low scores could read-ily be made, with wide fa irways, no difficult carries and smooth, level put-

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ting greens. Naturally, it could not all be done at once, but the Cascadescourse was built in '23 and a few years later the Homestead course wascompletely rebuilt. Now hardly a year passes without some little alteration onone course or the other, to make them more nearly ideal. The same standardof maintenance was set for each course; the fairways and greens of one areequal to those of the other; they differ only architecturally.

One enjoys telling of the Cascades course, for it is a thing the golfernaturally loves to dwell upon. It is somewhat unconventional in that thereare five par threes —but what beautiful one -shot holes they are. The secondand the eleventh are about as fine examples of their type as the golf archi-tect has ever designed; and the eighteenth -200 yards overall and requiring• carry of only 145 yards over the pond —is yet so individual that it makes• par three for a finishing hole not at all the anticlimax such holes some-times are. It is not customary to finish with a short hole; but one cannotforget Garden City, still one of the outstanding courses in America, wherethe last hole across the pond is only about 150 yards, and yet where muchgolfing history has been written as the result of a minor slip in playing thehole.

The Cascades course is not unreasonably long, about 6,700 yards from theback tee. There are but few carries which cannot be covered by even theaverage drive, but if you play from the back tees and do not get length (aswell as direction) you are confronted with a second shot which is of ex-ceeding difficulty. There is a premium, in every shot, on accuracy. Whenone is playing well the Cascades can seem surprisingly easy; but that itholds hidden snares can be realized when it is stated that never has anamateur surpassed par (71) in competition, and only once has par everbeen equaled by anyone other than a professional, none of whom has evergone better than 68. This sounds as if the Cascades were a course forchampion golfers only, but there are two, and many times three, tees onevery hole, and if a person is not out to match his skill against the highestof the game and is content to play from the intermediate tees the coursebecomes not only comparatively easy but full of charm. There is varietyin the play and there is beautiful scenery from every viewpoint. The hillsare somewhat easier than at the Homestead, particularly on the last nine,which are practically flat. The greens are kept fast as championship greensshould be; but they are absolutely true, and have a depth of turf which al-lows a full shot to be played up to the pin and hold. There are no unfairgreens with tricky turns and twists, but accurate work on the Cascadesgreens requires a true putting touch.

The Homestead course is naturally very different. It is hard to say whichhas the finer turf or the better greens. As a general rule a player has morethree -putt greens on the Cascades than on the Homestead, for on the latterthe second shot is easier and is apt to lie nearer to the pin. Furthermore,the Homestead greens, with the exception of the second, are nearly all levelor almost so. There is not the necessity for studying the break in the landas there is at the Cascades. More important yet, the Homestead greens are

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kept about a sixteenth of an inch longer than are those of the Cascades,to make putting somewhat easier for the ordinary player. Both courseshave creeping bent greens, and at last the problem of eliminating the napwhich has given those greens such a bad name, has been conquered, thoughit takes eternal vigilance to keep the grass upright.

There are hazards a- plenty on the Homestead course, but they do notresult in severe punishment if you happen to find them. There has beensome great golf played on the Homestead; it is almost a perfect course forwomen's competition. There was the match between Mrs. Vare (thenGlenna Collett) and Helen Hicks in which they finished all even at the endof eighteen holes, and each scored an honest medal of seventy -two strokes,one over the men's par. They halved the nineteenth hole in par figuresand on the twentieth Helen Hicks missing, or half missing, two shots sanka thirty-foot putt for a win.

One of the beauties of the Homestead course is a practice ground al-most unequaled for extent and facility for practice. There is also a practiceputting green immediately next to the club house, which is kept in just asexcellent conditon as are all other greens throughout the course.

In a description of golf at Hot Springs, one must not miss a referenceto the nine -hole course, usually called the "goat course." Hot Springs istruly golf- minded; and the goat course, a relic of some of the many experi-ments, is maintained more for the benefit of the Homestead employees thanfor any other person. Almost literally, it goes straight up the mountain andthen straight down again. Somehow the fairways seem to stay just aboutas good as on the regular courses in spite of much less work and expensein maintenance; and the greens, although they are not mowed as frequentlyor kept as short, are true. It is a sporty little course, and if your heartis good you may have some fun seeing if you can go around under thirty-sixstrokes. The views are gorgeous. The goat course has one further claimto distinction in that in winter it provides a ski run down the fairway of theseventh hole.

There are always competent pros at the Homestead and the Cascades,and frequent tournaments, most of them for the amusement of guests.

(Now if badminton's your forte, and you therefore didn't get a bit excitedby the foregoing, don't despair— there's a lot more coming.)

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Notes

When two manufacturers advertise similar products under trade -marksthat may be confused, what methods are available for determining the likeli-hood of consumer confusion between the two conflicting trade- marks? Thisis the question which gave rise to a recent report issued by the Bureau ofBusiness Research of the H arva rd Business School entit led "Determinationof Confusion in Trade -Mark Conflict Cases." This report, prepared byProfessor Neil H . Borden of the Harvard faculty, recommends that courtsaccept the evidence of psychological tests to help them determine whetherconsumers are confused by similar trade- marks. The report describes indeta il the tests made in connection with the recent case of John B. Stetsonvs. S tephen L. Ste tson Co., recounts the history of psychological work in thefield and appraises the value of such evidence in compa rison with the evi-dence usually accepted by courts in trade -mark conflict cases. Copies of thereport are available a t $1 each.

The LaSalle Press, 4101 S. Michigan Ave., Chicago, has just issued the1937 edition of the LaSalle Federal Income Tax Manua l, edited by MiltonVogel and R. W . Bergner. This 247 -page manual is intended as a clear,concise and non - technical presenta tion of the fundamental provisions of theRevenue Act of 1936. The manual is plentifu lly supplied with reproductionsof forms, il lustra tive worked -out problems and examples of tax computations.Copies are available from the above address a t $2 each.

Recent Additions to Our Research Library

M A N A G E M E N T F O R P R O F I T . C. E. Knoeppel and Edgar G. Seybold.McGraw -Hill Book Company, 330 West 42nd Street, New Y ork , N. Y .1937. xvi, 343 pp. $3.50.

SA L A RI E S , W A G E S A N D LA B O R RE L A T IO N S . J. O. Hopwood.The Ronald Press Company, 15 East 26th Street, New York, N. Y.1937. ix, 124 pp. $2.50.

T H E O R Y AN D M E C H A N I C S O F AC CO UN T I N G . Revised Edition.Leo A. Schmidt. Prentice -Hall, Inc., 70 Fifth Avenue, New York, N. Y.1937. xvi, 475 pp. $4.75.

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Notes on Current Literature

SALARIES, WAGES AND LABOR RELATIONS. J. O. Hopwood.The Ronald Press Company, 15 East 26th Street, New York, N. Y.1937. ix, 124 pp. $2.50.

According to the author of this book who is Director of Employmentwith the Philadelphia Electric Company, the basic questions in payrolladministration as applied to a particular business are: "What are the jobsof all the people in it, how should they be evaluated, and how should stand-ards of compensation be established with respect to these evaluations, individualcompetencies, and the income available for distribution via the payroll ?" Theseare the questions which the author attempts to answer. Following an intro-ductory chapter, the general problems of payroll administration and laborrelations for the individual concern are discussed. This is followed by chap-ters on job analyses and job evaluations and the matter of co- ordinatingcompensation standards. The subject of functional and graded job classi-fications for specific types of jobs is then explored and the final chapter,of most interest to the accountant, deals with administrative procedures andrecords.

ACCOUNTANTS' CERTIFICATES. James H. Wren. The Ronald PressCompany, 15 East 26th Street, New York, N. Y. 1937. vii, 181 pp. $4.00.

Anyone who has had occasion during the past few years to observe thechanges that have been taking place in auditors' certificates will realize thatthe certificate forms now in use differ widely from those used a few yearsago. In this book are presented 124 certificates prepared for leading com-panies in 1936 by 37 different accounting firms. By a system of coding andindexing the points covered in these certificates, the author has made avail-able for quick reference and comparison a wide variety of usage to serveas a guide for any particular situation.

Employment

Man AvailableListed below is a short summary of the employment record of one of

our members who is now available for employment. A complete file ofavailable men is maintained at Headquarters. Upon request, digests ofthe records of men available and qualified for the position to be filledwill be furnished employers.

No. 1363 — Specialized tannery cost accountant and production managerwith twenty -five years of tannery experience. Thoroughly acquainted withall cost accounting and production problems in calf and side dress shoe upper

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leather manufacturing. Five years of practical tannery experience in chrometanned calf and side upper leather. Desires connection with tannery whereknowledge can be fully utilized. No preference to location. Married man,three dependents, middle -aged. Salary open.

CURRENT COST LITERATURE

This listing, published on the first of each month, contains all the avail-able references to cost articles and cost material published for the most partduring the past month. Those references marked with an asterisk ( *) areobtained from the Engineering Index Service. Other references are securedfrom the Industrial Arts Index, published by The H. W. Wilson Co., 950University Ave., New York, N. Y., and also from periodicals received atNational Headquarters.

Arrangements have been made with the Engineering Societies Library tofurnish photostatic copies of any of the articles preceded by an asterisk ( *).The price of each print, up to 11 by 14 inches in size, is 25 cents pluspost-age. Orders should be sent direct to the Engineering Societies Library, 29W. 39th St., New York, N. Y., and should include all details as to volume,number, pages, etc. Photostatic copies of articles not marked with anasterisk cannot be provided.

To secure a copy of any of the publications here referred to, orderdirect from the publisher. Addresses of periodicals referred to will befound at the end of the references listed.

ACCOUNTINGKlug, V. C. Accounting Treatment of Unamortized Discount and Premium

in Utility Refunding Operations. Journal of Land and Public UtilityEconomics. November, 1936, pp. 410 -16.

See also Mechanical Devices.BANKS

Bodfish, J. H. Operating Expense Ratios in Building and Loan Associa-tions. Journal of Land and Public Utility Economics. November, 1936,pp. 419 -20.

CONSTRUCTIONHammond, A. M. Handling Accounts With Contractors on Public Works

Projects. National Petroleum News. December 16, 1936, pp. 43 -4, 46.

COST ACCOUNTINGDean, J. Statistical Determination of Costs, With Special Reference to Mar-

ginal Costs. Journal of Business of the University of Chicago. October,1936, pp. 1 -145, part 2.

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*LaCroix, J. P. How Army Engineers Keep Costs. Engineering News -Record. December 17, 1936, pp. 849 -53.Review of non - military work performed by Corps of Engineers and howits cost is kept and reported; plant cost accounting.

DEPRECIATION AND OBSOLESCENCE

*Harrison, R. E. W. Depreciation and Drop Forging Industry. HeatTreating and Forging. December, 1936, pp. 606-9.Analysis of relative productivity and investment per piece produced ofold and new steam and board drop hammers.

ENGINEERING

Oakhill, Frederic. Standard Procedure for Mechanical Department. Fac-tory Management and Maintenance. February, 1937, pp. 58-60.Exact outline defining the organization and execution of work of thedepartment responsible for construction, alteration, installation andmaintenance.

EXECUTIVES

See Wages, Salaries and Fees — Incentives.

FACTORIES

Chapman, L. L. Lubrication; Economic Aspects; Advantages of Cost Sheet.Canadian Mining Journal. December, 1936, pp. 643 -44.

See Depreciation.FOUNDRIES

FURNITURE

Kickler, D. C. Eight Pieces of Paper Enough to Run This Plant. FactoryManagement and Maintenance. February, 1937, pp. 50 -52.Analysis of the simple paperwork that insures close control of factorycosts in a furniture plant.

HOTELS

Chaplin, F. L. Costing and Control in the Catering Trade. The CostAccountant. January, 1937, pp. 236 -45.Catering here refers to the many services which a hotel offers thepublic; steps in the control of their cost are thoroughly outlined.

MANAGEMENT

Tead, Ordway. Prosperity, Profits and Payrolls. Society for the Advance-ment of Management Journal. January, 1937, pp. 23 -27.Contemplating the possibility of a boom which would repeat the 1929collapse; elements controllable by management.

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SAVES TIME AN D M O NEYin compiling figures required by the

SOCIAL SECURITY ACT

RECORI N

I

• THE PAYROLL — T h e c o m p l e t epayroll a nd check regi st er in o n e uni tshows the gross pa y, a ll dedu ctions, a n dnet pa y for a l l e mployees. Sepa ra t e to ta l sfor a l l co lu mns a ccu mu la te au toma t ica l ly .

• EARNINGS RECORD — C o m p l e t eindividu al progressive record for ea chempl oyee sho ws t ime work ed, gross ea rn-ings , de du ct ion s, a nd n et p a y for a ny a ndal l periods. Provid es in forma t ion n eededfor old a ge benefi ts , u n em pl oy me nt in-su ra nce, a nd in co me t a x repor t s .

• EM PLOY EE'S STATEM ENT—T h is receip t for dedu ctions, which thelaw requ ir es be given to ea ch empl oyeeat ea ch pa y per iod, a lso shows the indi-vidu al 's gross ea rnings, a ll dedu ct ions,a nd net pa y. It ca n be reta ined perma -nent ly by the employee.

• PAY CHE CK orJW R 1 T I N C? PAY ENVELOPE —Since the ch eck orpa y envelope is wri tt en with the abovethree records, the a m o u n t is in per fectaccord wi th these r ecords.

T o me e t t od a y ' s p a yr o l l a c c ou n t i n g n e ed s w i th a m in i mu m o f w o rk a n d a t l o wcost, Bu r rou ghs provides new ma chines, new fea tu res, new developments, forwri ting the records descr ibed above. Concerns —la rge a n d smal l —in a l l l i nesof bu si ne ss —a re b ene fi t i ng by t he s pe ed, e a s e a nd e co no my wi th w hic h on e orsever a l of thes e new Bu r r ou ghs ma ch ines comp lete l y ha n dle a l l pa yrol l r eco rds.For you r ow n i nfor ma t ion, a s wel l a s in th e in ter est of you r c l i ent s , you sho u ldinvestiga te these new Bu r ro u ghs ma chines. Call you r local Bu r rou ghs office.

BURROUGHS ADDING MACHINE CO., DETROIT. MICH.


M A T E R I A L S CO N T R O L

Bennetts, K. J . Wastage in Material. The Austra lian Accountant. Decem-ber, 1936, pp. 369 -79.

Sta tement of four basic laws to be observed in the control of vitalwastes that are commonly overlooked; practical applications of each.

ME C H A N I C A L D E V I C E S

Twohy, F. Application of Tabulating Equipment in Accounting Procedure.American Wa ter Work s Association Journal. November, 1936, pp.1704 -11.

P R I N T I N GSee Production Control.

P R O D U C T I O N CO N T R O L

*Braden, R. S. Function of Production Department. Wood - Worker. June,1936, pp. 22 and 24.

Importance of planning department, purpose of which is to co- ordinateother departments, to work with them and be responsible for results a tlowest cost, minimum of time a nd to meet delivery dates.

*Ruth, C. H . Plotting Production. Printing Equipment Engineer. Decem-ber, 1936, pp. 32 and 34.

Tying -in composing room operation with advertising copy flow andhow it is accomplished. Before A. N. P . A. Mechanical Conference.

P U B L I C U T I L I T I E S

Smith, H . F . Trend of Customer Accounting Practice. American Wa terWork s Association Journal. November, 1936, pp. 1677 -85.

See also Accounting.

SO CIAL SE C U R I T Y

Layman, W . M. Social Security Payroll Systems and Procedure. TheT a x Magazine. February, 1937, pp. 67 -72.

Discussion of accounting problems under the Social Security Ac t ;sample illustrative forms.

S T A N D A R D CO ST S

*Crawford, E . C. Advantages of Standard Cost System. Wood - Worker.August, 1936, pp. 14 -15.

System outlined; some of more common causes of cost fluctuation.

S T A T I S T I C SSee Cost Accounting.

S T O R E S S Y S T E M S

Sorenson, A. L. Essentials of the Service of Supply. Railway Age. No-vember 21, 1936, pp. 753 -55.

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Whether you do your distributionwork by hand or use mechanicalequipment, it will pay you to dis-cuss the advantages of using thismachine with one of our representa-tives. The discussion will not placeyou under obligation and may re-sult in your finding a cheaper andquicker method of performing dis.tribution work.

T N B • J ••

D A Y T O N , O H I O

Cash Registers Typewriting- Bookkeeping Machines Posting Machines• Bank- Bookkeeping Machines Check - Writing and Signing MachinesAnalysis Machines Postage Meter Machines Correct Posture Chairs


TAXATIONSeidman, F. P. The Undistributed Profits Tax -- Suggested Changes in Lazy.

The Tax Magazine. February, 1937, pp. 79 -82.Elimination of uncertainties and inequities in the statute advocated.

TIME STUDIESBalderston, C. C. Wage- Setting Research. Personnel Journal. December,

1936, pp. 220 -24.*Hardy, C. W. Practical Time Study Methods in Metal Products Manufac-

turing. Metal Industry. December, 1936, pp. 465 -67.Simple methods used in modern small plants to determine production perhour for establishing piece work rates, etc.

Taylor, H. C. A Way to Reduce the Fatigue Allowance in Time Study.Personnel. February, 1937, pp. 83 -93.Direct study of output curves recommended to determine optimum timeand length of rest periods which should then be specified in standards,not merely expressed as a percentage of the working time.

WAGES, SALARIES AND FEES — INCENTIVESHopf, H. A. Executive Compensation: A Problem in Incentives. Society

for the Advancement of Management Journal. January, 1937, pp. 15 -22.The principles underlying the compensation of executives in proportionto their contributions; obstacles to be overcome in the installation of

executive compensation plans.Rositzke, R. H. Measured Day Work. Factory Management and Mainte-

nance. February, 1937, pp. 45 -46.A discussion of the what, why and how of this incentive plan.

WOODWORKING

*Scribner, C. F. Controlled Costs in Wood - Working Plant. Wood - Worker.June, 1936, pp. 36, 38; July, pp. 15 -16; September, pp. 36-38; andNovember, pp. 40 -42.Costs and cost control under modern conditions; advantages of knowingcost of production; purpose of cost records and cost control.

See also Production Control; Standard Costs.

ADDRESSES OF PUBLICATIONS LISTED

American Water Works Association Journal, 29 W. 39th St., New York,

N.Y. (50¢)Australian Accountant, The, 314 Collins St., Melbourne, Australia.Canadian Mining Journal, 146 King St., W., Toronto, Ontario, Canada.

(15¢)

781


Cost Accountant, The, 23 Queen Square, London, W. C. 1, England.Engineering News- Record, 330 W . 42nd St., New York, N. Y. (250)Factory Management and Maintenance, 330 W. 42nd St., New Y ork, N. Y.

(350)Heat Treating and Forging, Steel Publications, Inc., 108 Smithfield St.,

Pittsburgh, Pa. ($2.00 a year)Journal of Business of the University of Chicago, University of Chicago

Press, 5750 Ellis Ave., Chicago, Ill. ($1.25)Journal of Land and Public Utility Economics. Northwestern University,

337 East Chicago Ave., Chicago, Ill. ($1.25)Metal Industry, 116 John St., New York, N. Y. (200)National Petroleum News, 1213 W. 3rd St., Cleveland, Ohio. (100)Personnel, 33 0 W. 42nd St ., New York, N. Y. (500)Personnel Journal, Personnel Research Foundation, 29 W . 39th St., New

York, N. Y. (750)Printing Equipment Engineer, 11 W. 42nd St., New York, N. Y. (250)Railway Age, 30 Church St., New York , N. Y. (250)Society for the Advancement of Management Journal, The, 29 W . 39th

St ., N ew Y ork, N . Y. (750)Ta x Magazine, Commerce Clearing House, 205 W . Monroe St., Chicago,

Ill. (500)Wood-Worker, 701 Wulsin Bldg., Indianapolis, Indiana. ($2 a year)

NOTE: The prices given above, unless otherwise indicated, are for singleissues only. When the annual subscription rate apears, the price of singleissues is not listed. Where no price is given, the rate may be obtained bywriting direct to the address listed. No attempt is made to price foreignpublications because of fluctuating rates of exchange.

Applications for Membership

The Executive Committee has ruled that the names and addresses of al l applicantsfor membership in the Association shall be published in the Bulletins for two weeksin advance of the date on which they are sent to the Director -in- Charge of Member-ship for approval. The following applications will be forwarded to the Director twoweeks from the date of this Bulletin. Comments in regard to these applications whichare received from members of the Association during this two weeks' period will beattached to the application before they are forwarded to the Director -in- Charge.

Birmingha m

Carl R. Culverhouse, Tennessee Coal, Iron & Railroad Co., Birming-ham, Ala. (Company Tra nsfer from R. R. Darden.)

Jesse L. Hagy, Republic Steel Corp., Birmingham, Ala.

Boston

Ralph E. Packard, Cooley & Marvin, 140 Federal St., Boston, Mass.

Bridgeport

Wal ter W. Garrity, 375 North Pine Creek Rd., Fairfield, Conn.

782


BrooklynC. S. Scott, Intl Business Machines Corp., 184 Sterling Place, Brooklyn,

N. Y. (Company Transfer from R. J. Lydman.)

BuffaloMatthew R. Campbell, Tonawanda Corrugated Box Co., Inc., 435 Payne

Ave., N. Tonawanda, N. Y.

ChicagoA. A. Hadden, McClure, Hadden & Swisher, 111 W. Washington St.,

Chicago, Ill.

CincinnatiWilliam P. Byman, Elk Horn Coal Corp., 601 Transportation Bldg.,

Norwood, Ohio.Elmer F. Franz, 3817 Homewood Rd., Cincinnati, Ohio.Leo H. Schmitt, The Drackett Co., 5020 Spring Grove Ave., Cincinnati,

Ohio.

ClevelandCharles J. Cooney, 1442 W. 114th St., Cleveland, Ohio.Edwin C. Loomis, The North American Coal Corp., 1550 Union Trust

Bldg., Cleveland, Ohio.Albert H. Ullman, 2067 Baxterly Ave., Lakewood, Ohio.

HartfordAlbert L. Brooks, Int'l Business Machines Corp., 1118 Main St., Hart-

ford Conn.

Kansas CityM. H. Planck, Marchant Calculating Machine Co., 201 Mutual Bldg.,

Kansas City, Mo.

Los AngelesWarren D. Johnson, Mills Iron Works, Inc., 929 N. Main St., Los

Angeles, Calif.

MilwaukeeLewis S. Thomas, Schroeder Hotels, 210 E. Michigan St., Milwaukee,

Wis. (Company Transfer from W. E. Ek.)

MinneapolisGeorge R. McLean, Ernst & Ernst, 1204 1st Nat'l Soo Line Bldg., Min-

neapolis, Minn. (Company Transfer from Theodore Ryan.)

New YorkRobert R. Hertzler, Touche, Niven & Co., 80 Maiden Lane, New York,

N. Y.Frank X. Miske, Ross Federal Service, Inc., 6 E. 45th St., New York,

N. Y.783

i

OFFICIALN.A.C.A. LAPEL BUTTON

Now Available of

Reduced Price of $1.50

Every member of the Association ought tohave an Official Button to wear at Chaptermeetings, National gatherings and other busi-ness conferences.

These buttons are a reproduction of the sealof the Association in blue enamel on a goldplate base. They constitute a distinctiveemblem--a worthy evidence of your affilia-tion with the N. A. C. A.

Order with remittance should be sent to:National Association of Cost Accountants385 Madison AvenueNew York, New York


Harry J . Richardson, Wickwire Spencer Steel Co., 41 E. 42nd St., NewYork, N. Y.

Martin L. Semmel, W . L. Thomas & Co., Inc., 551 5th Ave., NewYork, N. Y.

James F. Terril l , H otel St. George, Brooklyn, N. Y.

Pi t t sbu rghH . B. Cunningham, The Todd Co., 204 American Bank Bldg., Pitts-

burgh, Pa.Frank P. Flint, Koppers United, 622 Koppers Bldg., Pittsburgh, Pa.

(Company Transfer from W . S. Bowser.)

ProvidenceArthur L. Smith, The Conrad Mfg. Co., 481 Main St ., Pawtucket, R. I .

(Company Transfer from Hamilton J . McKenzie.)

ReadingMarlowe W. H artung, T ilghman Moyer Co., 141 N. 9 th St., Allentown,

Pa.

Rochester

William R. Carr, Schwalb Oil Co., 382 S. Plymouth Ave., Rochester,N. Y.

William D. Jack, Eastman Kodak Co., 343 Sta te St. , Rochester, N. Y.Anna E. Miller , Rochester Folding Box Co., P. O. Box 1012, Rochester,

N. Y .Laurence M. Tarnow, Eastman Kodak Co., 343 State St., Rochester,

N. Y .

Rockford

R. A. Aldeen, American Cabinet Ha rdwa re Corp., 420 S. Main St.,Rockford, Ill.

San Francisco

Douglass M. Barrows, El Dorado Oil Works, 230 California St., SanFrancisco, Calif.

Edwin J. Barshell, 112 Westwood Drive, San Francisco, Calif.

Syracuse

Gordon P. Lovell, Int 'l Business Machines Corp., 628 S. Wa rren St.,Syracuse, N. Y. (Company Transfer from D. M. O'Reilley.)

Paul G. Witte, Standard Register Co., 217 Denison Bldg., Syracuse,N. Y.

Ut ica

H. Barrow Parry, Utica Box Co., Inc ., 1608 Lincoln Ave., Utica , N. Y.

Washington

S. M. Wedeberg, Library, University of Maryland, College Park , Md.

784

, - . . --A N A T I O N - W I D E F I G U R E S E R V I C E ,

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Business figures cannot suffer interruption

0 .0 get far more than a machine when you become a Monroe

user ; you get the assurance of continuous, economical figureproduction. No matter where you are, no matter how manyfactories or branch offices in your business, Monroe service isalways right at hand.

There is a Monroe for every kind of figuring work — adding-calculators, adding - listing and bookkeeping machines, also checkwriters and signers. Every Monroe is compact, desk-size, sturdy,and dependable; every one has the famous "Velvet Touch" key.board that takes the strain out of operating, speeds up work,reduces costs.

A telephone call to your local Monroe branch office will bringfurther information. Or write to the General Offices.

NIQ N R O – E

;ALCULATING M A C H I N E C O M P A N Y , I N C .

G e n e r a l Offices: OR AN GE , N E W JE R S E Y

Documents

N. A. C. A. BULLETIN