societies of the present day, and in 1793 an Act was passed for their protection. Sir Edward Brabrook spoke of friendly societies having a membership of about 6,000,000, but there were many societies, such as working men's clubs, medical societies, and so on, which are included in the full official returns, and, including the total membership of all these, the number would be more like 14,000,000, or one-third of the total population, and they had funds of over 50,000,000l. The organisations represented by such large figures ought not lightly to be destroyed, but he feared the legislation which was being adopted in this country was sapping the moral independence and individuality of the nation, and was not amongst the least of the causes which led to unemployment. He felt satisfied that, owing to the burden cast upon them by recent legislation, many people would not offer employment for fear of laying themselves open to uncertain liabilities. Even in the domestic servant class there were a large number of households now doing without domestic servants where they were formerly employed. It appeared from the Paper that in Germany the number of unfounded claims for accidents totalled 80 per cent. of the appeals, but he was thankful to think that in this country there was no foundation at present for thinking that the working classes took such an exaggerated view of what they might obtain in this way. Still, you did find that the claims in regard to fatal accidents had a tendency to increase in amount; the weekly payments for incapacity had increased during a short period 10 per cent. for total, and 15 per cent. for partial, disablement; the notifications under the Factory and Workshops Act had increased 79'1 per cent. for fatal accidents, and 209'4 per cent, for non-fatal accidents in eleven years. In other words, there were three times as many accidents now reported as eleven years ago. No doubt some of these were due to the provisions in the Amendment Act, but in old days a workman with a slight injury had sufficient manliness to take little or no notice of it; and now, looking forward, everything involving the slightest injury was likely to be notified, and he felt that this country would find the same experience as Germany, where in eleven years the compensation had risen from 28. 14d. to 6s. 5d. per head, though in that country there was no payment made for the first 13 weeks. In Austria it had risen from 18. 5d. to 58. 114. per head, although no payment was made for the first 4 weeks, and mining accidents were not included. In France and the United States there was a similar tendency for compensation to increase largely. A paper recently read before the Law Society in Birmingham by Sir J. G. Hill, on the liability of employers for accidents, deserved great attention, as in it he demonstrated the necessity for amendment of the Workmen's Compensation Act. In his (Mr. Foot's) experience the complexity of the phraseology of the new Act led to a great deal of trouble. It appeared that a new and serious disease was spreading amongst workmen, called traumatic neurasthenia, and sympathetic judges awarded compensation for it. No doubt some of the cases were genuine; but he could remember the day when a man was not considered an experienced sawyer until he had lost part of several fingers, but now-a-days the most trifling accident was made the subject of a claim. He hoped they might look forward to the time when the workmen would join with the employers in contributing to schemes for insurance to provide, not only for those accidents arising out of employment, but arising at all times and at all places in the manner referred to by Mr. Tozer in a Paper read before this Society in April, 1904. Such schemes could be worked on favourable terms, because of the simplicity of the language which need be employed, which would tend to prevent litigation. Out of all the schemes certified under the old Act of Parliament only 22 were re-certified under the new, and only 7 new schemes had been brought forward. Mr. COTTERELL WALLIS said that on p. 608 the author said that here everything was voluntary, but he might draw attention to one little experiment which had been made by the Government, and which might provide some results. That was the Elementary Teachers' Superannuation Scheme, which had been now going on for nearly ten years with compulsory contributions; but one result had been that the women's contributions had been since raised above the original amount. He did not know whether such a small experiment would provide sufficient data for drawing conclusions, but he thought perhaps it had been overlooked. The PRESIDENT said he feared the class referred to would be too picked, like the police superannuation, or any other particular class, to give valuable statistical results for general application. In moving a formal vote of thanks to Sir Edward Brabrook for his admirable Paper, he must say he regretted they had not had a more bellicose discussion, but there did not seem to be the elements of a fight in the room. He would only make one further remark on the suggestion of Mr. Foot. He had referred to the odd-named disease of which they had never heard, which was being added to the schedule under the Workmen's Compensation Act, and he must say the tendency was to add such diseases, but there was a reason in it. When it was proposed to add a real disease from which an enormous number of people suffered, it became worth while to fight that addition, and Mr. Samuel's Committee rejected, after arguments in favour of admission, potters' rot or potters' asthma, which was of all diseases a disease of occupation, but which was not easy to define, and not very certain of detection, as compared with a similar disease which is not a special disease. There was, therefore, a great fight, and it was not included. But these diseases with unpronounceable names were added and nobody minded. One of those which was put in the Act itself-not one added since-was one which nobody in the House of Commons could pronounce, neither the Minister in charge of the Bill nor his secretary, and finally they all adopted a much simpler phrase which they all agreed referred to the same thing, and called it "miners' worm." It was not that people put in claims for this disease, for they had VOL. LXXI. PART IV. 2 T not done so at the time it was included, and it was stated that no case had occurred in this country; but it was expected. They now knew that a number of cases had occurred, but they passed unnoticed. A man did not know that he had the disease under the unpronounceable name, and made no claim. Sir EDWARD BRABROOK, in reply, said he was gratified by the reception of his paper, though he had expected it would have been more provocative of discussion, and was almost inclined to be disappointed that the discussion had been so amicable. Mr. Ramsay Macdonald had stated perfectly accurately what was the issue between them, and he accepted that statement. They differed in opinion as to the advantages of a contributory and non-contributory system. All the schemes, as the President had pointed out, which existed in other countries were contributory schemes, and therefore the burden of proof lay upon those who brought forward a noncontributory scheme. At present he desired to say that he was convinced that a contributory scheme was the right one. With regard to Mr. Macdonald's argument that the particular event of old age was remote, he thought that made it all the more necessary that it should be insured against. The more remote it was the more moderate the premiums need be, and therefore the less difficulty in creating the insurance. The real difficulties in insurance were those things which were not remote, such as sickness and unemployment. There was less difficulty in insuring a reasonable amount against old age than in insuring against those other contingencies which were impending throughout life. The following were elected Fellows of the Society : Charles Shuldham Alexander. M.A., D.Sc., F.R.S.E. Noel Janisch. Hugh Lewis. William Lupton. Joseph Mann. Samuel Bennett Neill. Hubert Vincent Reade. George Thomas Reid, B.Sc. (Econ.), Lond. George Archer Hilleary Samuel. William Henry Smith, F.S.A.A. AMERICAN METHODS of RAILWAY ACCOUNTING. By SAMUEL CHAPMAN, formerly Chief Accountant of the Inter-Oceanic Railway of Mexico, and Honorary Member of the Association of American Railway Accounting Officers. [Read before the Royal Statistical Society on Tuesday, 15th December, 1908, Mr. ARTHUR H. BAILEY, F.I.A., in the Chair.] It is not possible within the limits of a single paper to review in detail the various branches of railway accounting in the United States, and the following notes are only intended to give some idea as to the reasons which have led to the building up of a system differing widely from the general practice in this country. One of the first things to strike an Englishman is the apparent uniformity in the making up of accounts of railways throughout the length and breadth of the United States; this, of course, has its origin in Government supervision. In accordance with Section 20 of the "Act to regulate commerce," classifications covering both earnings and expenditures are prescribed by the Interstate Commerce Commission. The Association of American Railway Accounting Officers which plays so important a part in the general harmony had its birth at Washington D.C., 28th March, 1888, when sixty-six officials, representing 72,453 miles of railway, met for the purpose of taking under consideration the form of annual report to be made by railways to the Interstate Commerce Commission, and it was resolved" that a committee of fifteen be appointed for the purpose "of organising a permanent national organisation of railway "accounting officers." The Association at its last annual meeting, held at Washington D.C., 29th April to 2nd May this year, reported 498 active members, representing 280 companies with about 238,000 miles of line, and Dr. H. C. Adams, Chief Statistician of the Interstate Commerce Commission, has been an honorary member since 1893. In order to explain the modus operandi between the Government and the railways, it may be stated that the Association of American Railway Accounting Officers has seven Standing Committees, one of which, on Corporate, Fiscal, and General Accounts, is in close touch with the Division of Statistics and Accounts of the Interstate Commerce Commission, which issues from time to time circulars addressed to the accounting officers of railways, raising questions for individual replies. These are afterwards dealt with by the Standing Committee and in turn passed upon at the annual meeting. At the end of the Paper I give the text of the letter covering Circular No. 11, of 5th July, 1907, which will serve to show how careful the Government officials are not to lay down any new rules without first giving the railways every opportunity of raising questions. The circular in question is too lengthy to reproduce, consisting as it does of thirty-five pages dealing with thirty-seven subdivisions of expenditure relating to additions and betterments. At the last annual meeting of the Association no less than 352 cases which had been under discussion between the Inter-state Commerce Commission and the Standing Committee on Corporate, Fiscal, and General Accounts were dealt with, as well as 31 criticisms. Of the cases 3 were withdrawn and 25 declared vacant, and of the criticisms 4 and 2 respectively. This Committee, through the President of the Association, had submitted all queries not passed upon by them to the appropriate Committees for the benefit of their judgment, and the action of these Committees and of the Standing Committee referred to was adopted by the meeting except in the case of 16 queries and one criticism, which were referred back again. One of these cases may serve as an illustration of the amount of detail dealt with, and of the care taken so that answers may not be misconstrued :— Case 169. Query.-A new freight car, valued at $665, was destroyed in the month of July. Estimated salvage $100, net loss $565, no depreciation so far charged. Kindly advise full treatment of this matter. Answer. Where a new freight car went into service on 2nd July, or later during the month of July, and was destroyed during the month of July, salvage being $100, original cost $665, net loss $565, the $565 should be charged to account "freight-train carsrenewals," the $100 should be charged to materials or the equivalent account, and the "freight train cars-replacement" fund should be credited $665. If, however, the car was in service on 1st July, 1907, depreciation charges should be made in respect of that car for one month's depreciation, in which case the renewals charge will be less than above stated by the amount charged on account of one month's depreciation. If the car was in service prior to 1st July, 1907, account must be taken of the depreciation accrued prior to that date, in accordance with the principles given in Accounting Series, Circular No. 13. When any car goes out of service, the principal sum upon which depreciation charges for this class of equipment are to be based should be adjusted accordingly. |