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We are certain that the Board, whose office is at Columbus, Ohio, would welcome suggestions from any reader of THE JOURNAL. Following are the questions to which the Board would like answers: 1. “A” What is a “ Public Accountant”? “B” Can any person be properly termed a Public Accountant who

is not actively engaged in business on his own individual account, or a member of a firm or co-partnership, and,

If so, under what conditions ? 2. What, in your opinion, constitutes “Experience in the practice of

accounting "? 3. Are you cognizant of any opinions rendered by the Attorney General or any other

officer in charge of the legal department of any State, County, or Municipality, or decisions rendered by any Court, which relate to the matters herein stated ? If so, please refer us to such decisions.

The Annual Meeting of The American Association of Public Accountants, to be held at Atlantic City, October 20-22, promises to be the largest and most interesting meeting the association has ever held. The program, which was printed in the August issue of THE JOURNAL, gives assurance of first class addresses upon important topics. There will also undoubtedly be some good speeches made by the visiting delegation from Great Britain. It is to be hoped that accountants from all parts of the country, whether they go as delegates from accounting organizations or as individuals, will attend this meeting in large numbers. The man who stays away from such a gathering because he can see “nothing in it” for himself, is making a great mistake. These annual meetings perform two distinct services for the practicing accountant. In the first place, they make possible the maturing and crystallization of the best thought upon matters vital to the welfare of the profession, so that its development under the laws of the different states may tend toward harmony and uniformity. This is the raison d'être of the National Association—to put American accounting upon the highest possible plane. Surely every individual accountant is interested in this purpose, and will be benefited by its achievement. But the selfish individual may think the work can be well enough done without his aid. Let others work for the profession; he meantime will work for himself. A man of this sort misses altogether the personal benefit to be derived from attendance upon such a meeting. This benefit is intangible, but it is real, and it is valuable. New friendships are made, new ideas are gained—from conversations more often than from the public addresses—better business methods are learned, and broader views of business are obtained. All these things count mightily in the long run, and no man ambitious to be a successful or great accountant can afford to ignore them.

Examiners Wanted for the Interstate Commerce


The United States Civil Service Commission announces the postponement to October 7-8, 1908, of the examination scheduled to be held on September 3-4, 1908, at certain places mentioned in the official list, to secure eligibles from which to make certifications for the appointment of examiners in the Division of Accounts, Interstate Commerce Commission.

The salaries will range from $1,800 to $3,000 per annum, and traveling expenses will be allowed when away from Washington or other official headquarters.

It is expected that approximately 75 appointments will be made if sufficient high-grade eligibles result from this examination.

Owing to the Commission's inability to secure a sufficient number of competent applicants, qualified persons are urged to apply for this examination.

The examination will consist of the subjects mentioned below, weighted as indicated : Subjects.

Weights. 1. Commercial and railway geography

5 2. Arithmetic

3. Abstracting (a test in condensing a statement of about

400 words into a brief, concise, and accurate abstract
of 150 words or less)

4. Practical questions in general accounting and statistics 15
5. Practical questions in accounting of railway and other

common-carrier service
6. Thesis on a transportation topic ..

7. General education, training, and experience
8. Accounting and other technical experience along lines

connected with railway and other common-carrier


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The first six subjects will be given in the examination room and will require at least two days.

Age limits, 23 to 48 years on the date of the examination.

In view of the importance of these positions, rigid examination will be made of the special fitness of all applicants, and only those who have submitted prima facie evidence of having had high-grade training and experience along the lines indicated in the eighth subject will be admitted to the examination. It will, therefore, be useless for any one with only ordinary clerical or routine experience to apply for this examination.

Certifications will be made from those standing highest on the register without respect to the apportionment.

This examination is open to all citizens of the United States who comply with the requirements.

PROFIT MAKING MANAGEMENT, by Charles U. Carpenter. 150 pages.

Price $2.00. New York. 1908.

The author speaks from the standpoint of practical experience, and clearly defines the benefits accruing from perfect organization and how it may be attained. It is refreshing to read the testimony of a successful executive officer with respect to the value of analytical reports of the cost of production and their effect in stimulating the efforts of subordinates to economize when placed before them as an advisory committee.

His book treats at length with the economic management of the tool room, departmental cash, and of labor and its subdivisions. The scope of the work is broad, and the principles which lead to success may be studied with profit by accountants as well as every one having the supervision of men or affairs pertaining to factory management.

W. H. Dennis.

ELECTRIC RAILWAY ACCOUNTING, by W. B. Brockway. 84 pages.

Price $1.35, post paid $1.45.

The book treats about “The Monthly Report," "The Accounting Department,” and “The Accountant." As the author is the general auditor of the Nashville (Tenn.) Railway and Light Company, he is in a position to present the subject matter in practical form. He states;

Many works have considered the accounting of street (or more properly now, electric) railways, but always from a standpoint outside the actual operation of such work. It is hoped here to show the subject in a somewhat more intimate light."

The author does not claim to treat the subject in all its bearings, but merely to place before the reader a brief consideration of the subject. There are a few suggested forms of a monthly report. Especially valuable is the chapter entitled, “Curves as a means of expression," where the author discloses how useful such chart illustrations are. While, as stated above, the book does not cover the entire field-an impossible task in a book of 84 pages—it gives a good resume of this class of accounts that will be of value to officers of electric railways.

Leo Greendlinger.


ACCOUNTANCY, by Francis W. Pixley. 311 pages. Price $2.00. London,


This book is a type of its forerunner, “ Auditors." The author states : “ This is the first attempt

to treat Accountancy on a scientific basis. For this purpose the subject has been divided into sections to which names that are new, both to practitioners and students, have been assigned.”

While is questionable whether the author's remark that “this is the first attempt," etc., is correct, there is no doubt that the nomenclature will provoke discussion. He divides Accountancy into three branches : (I) Constructive, (II) recording, (III) analytical or critical. Under the heading “Constructive" the author classifies what is commonly called "systematization” and “organization"; under “Recording," what is technically known as "bookkeeping"; under “ Analytical” or “Critical," what is technically known as “auditing." Based on this division he subnames his treatise “ Constructive Recording Accountancy.”

The book contains XIV Chapters devoted to the following topics: " Accountancy and its Practitioners”; “The Recording Branch of Accountancy, or Bookkeeping ”; “The Constructive Branch of Accountancy"; "The Construction of Books”; “The Construction of Cost Accounts”; “The Construction of Statements of Accounts to show Financial Results ”; “The Construction of the Profit and Loss Account–Trading Account, Revenue Account”; “Depreciation ”; “The Construction of the Balance Sheet ”; “Prescribed and other Statements of Account "; The Law relating to the Construction of Books and Statements of Account."

That the headings may not cause misunderstanding to the reader, it is perhaps well to quote the author that: “ It is no part of this work to touch in any way on the theory and practice of bookkeeping, which, as explained and taught in text books, deals, of course, with general principles only."

For the advanced student of accountancy, and especially for the practitioner, this scientific treatise is invaluable. Mr. Pixley's popularity will surely be increased by this addition to accounting literature, especially so as of all chapters but one (The Law Relating to the Construction of Books and Statements of Account) is local (English), while the others are capable of general application.

Leo Greendlinger.

BAKERS' ACCOUNTS, by F. Meggison, C. A. 114 pages. C. A. Gee &

Co., London. 1908.

This is the fiftieth volume of the “Accountants' Library” series. It contains a system of bookkeeping of bakers, together with chapters on income tax, branch shops and bakehouse accounts.

Like all the volumes of the “Accountants' Library," it is enriched with numerous forms and illustrations. Among its novelties is a “Retail and Wholesale Ledger” wherein daily sales and cash receipts are entered. A chapter is devoted to a brief review of the general principles of bookkeeping. A chapter on depreciation gives a table of allowances to be made on various assets pertaining to this class of accounts. The author favors the absolute use of the journal wherever the double-entry system of bookkeeping prevails, and the principles explained will be found to be capable of general application. All the essential factors in the successful working of the business have received due consideration.

Considering the fact that few trades have received so little attention as this class of accounts, Mr. Meggison's contribution is a valuable onje, and will help to formulate a proper system of bookkeeping for bakers.

Leo Greendlinger.

BOND VALUES. By Arthur S. Little. A Table for Bonds, Notes, etc., run

ning from 11 months to 20 years, and bearing interest at the rates of 4%, 43%, 5%, and 6%, showing approximate prices at which they will yield 101%, 11%, 114%... ...20%. Published by the Author, 303 N. 4th Street, St. Louis.

This is distinctly a table for bonds at high income basis, or, in other words, at low prices, for those bargains or sacrifice sales which occasionally offer, especially in times of crisis like that of 1907. Hitherto it has been impossible to ascertain without tedious calculations the price at which any income greater than ten per cent. could be attained, for none of the books of bond values went above that rate, and few went so high.

The income basis is always composed of two parts: a suitable rate of compensation for the use of capital, and a premium of insurance against loss of principal. In making a speculative venture, it is desirable to know how much this premium amounts to, and how many years the concern issuing the bond would have to remain solvent in order to recoup the investor from the extra income.

If an investor had, during the latter part of 1907, been offered some 5 per cent. bonds having 6 years to run at 60, he would have had to guess at the income basis attained, as no tables existed which would answer the question. With Mr. Little's tables, he would turn to the page for six years, and the column of 5 per cent., and the nearest price to 60 would be found, 59.9, and this is opposite 15%2 per cent.

As 1572 is not an income which he would deliberately set out to acquire and bargain for, the deal would be made, not on a basis," but "at a price.” Hence, three decimal places are regarded as sufficient for estimating the basis, and 72 per cent. close enough as to rates.

The semi-annual period has been adopted as the standard, and Mr. Little has dared to adhere rigidly to it even when a fractional period is concerned. In this respect he is in advance of any compiler of tables whose work we have yet seen; perhaps further than the present state of enlightenment of the average computer will support him, nevertheless scientifically true. What is generally called true discount,” is true for an exact period, but is untrue for a partial period. A true discount must be employed to constitute equitable interest, so that the holder for the earlier part of the period earns with his money effectively the same rate as his successor.

Thus, if a 6 per cent. bond (semi-annual) is sold on a 16 per cent. (semi-annual) basis when it has 6 months to run, all authorities agree that the value is 1.03 • 1.08, or .953704; but, where only three months remain, there is a conflict. The ordinary assumption would be that the value would be 1.03 - 1.04, or .9903846. But Mr. Little here demurs: he gives it as .991118. He would reason that the buyer at .9903846 gets interest at the rate of 16 per cent. payable quarterly, which is not in the conditions, and that the quarterly equivalent is not .04, but .03923048, which rate is enjoyed by each of the two holders.

In this variance between Mr. Reussner's Tables of True Discount and Mr. Little's tables, both are right; while the latter is mathematically correct, the former is legally so in the present state of the law. This

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