In the News the Technical Side Stevenson Trophy Standings

N.A.C.A. BULLETIN De c e m b e r °� a3� Three Sections 1 9 5 1 Se c tio n 2

In the News

Season's Greetings —from your President 503 700 Attend New England, Northwest Conferences 505 Hawaiian Hospitality —ala N.A.C.A. 507 The N.A.C.A. Applicant —A Profile 509 In the Public Eye 510 Congratulations to 511 We Remember 522

The Technical Side

Cost Currents 512 Literature Notes 515

Stevenson Trophy Standings

514

Chapter Meetings

517 N.A.C.A. BULLETIN Volume XXXIII, Number 4

Published by NATIONAL ASSOCIATION OF COST ACCOUNTANTS 505 PARK AVE., NEW YORK 22, N. Y.

NATIONAL OFFICERS

Pre.rid ew HERMAN A. PAPENFOTH

Vice Presidents L. C. BOLLINGER GEORGE E. HALLETT ARTHUR C. CHUBBUCK JOHN B. INGLIS ROBERT E. DERBY WILLIAM E. JACKMAN FRANCIS H. HALL I. WAYNE KELLER

Treasurer PHILIP J. WARNER

HEADQUARTERS' STAFF

ARTHUR B. GUNNARSON Secretary RAYMOND P. MARPLE JOHN L. DORAN Assistant Secretary — Technical Service Assistant Secretary — Chapter Relations and Conferences WALTER B. McFARLAND JAMES A. THOMPSON Supervisor of Research— Member Service Office Manager — Membership Relations DONALD G. KEEN GEORGE F. WYMAN Supervisor of Publicity and Editor of N.A.C.A. Bulletin Public Relations i.'� 1�\H!/ici�:.'.1�\� %':�� .'.1�\� � � � lr'•::.'.1�\� � �� :.� ,1�\� � "� � '.1�\� � �� .'„1�\� C� '::!1�\� � �� .'� 1�\� � �� '•.1�\� � �� T1�\� � �� .'� 1�\� :-�'� 1�\� :'1\

Season's Greetings — from your President

A S WE APPROACH the Christmas Holiday Season and the beginning of a New Year, it is both a festive occasion and a time to give thought to what Christ- mas really means to us. Today, when the routine of everyday living seems to be pushing us on all sides, it is easy for us to lose sight of some of the things which create the spirit of Christmas. In keeping with this spirit we set aside our problems and take time off from our everyday duties, giving way to a general feeling of generosity and kindness. It is a time for counting our blessings and to think in terms of peace and good will toward all mankind. As our thoughts turn to Christmas, take a backward

H. A. Papenfoth look into your own childhood and try to remember what meant most to you during the Christman season. Was it the reading of Christmas stories; the singing of Christmas carols; the home coming of f amily members and relatives; the decorating of the Christmas tree; the many Christmas delicacies on the table; or, was it the pleasure in giving and sharing and the time devoted to worship? What�about�Christmas�—what�does�it�teach us? It is a season that teaches and interprets the spirit of peace. It is also the season that interprets the meaning of g ood will�—it�is�the�season of sentiment. N o matter how unnerved we may be, no matter what our troubles, our work, our ambitions�—every one of us has a bit of sentiment stored away, which needs expression. Sentiment can never be sepa- rated from successful human relations. The Christmas spirit permeates families, friendships and associations throughout a large part of the world, and the general feeling of good fellowship and all that it means is heightened at this time of the year. This same family spirit of friendly association exists within our own N.A.C.A. and makes for enjoyment in our work and endeavors. It creates ties which endure throughout the years and, as we look into the past or into the future, we are happy for the relationships and associations which have brought us together. Christmas is a season f or giving and for receiving, which is so well expressed in this poem "World Harmony" by Grace Noll Crowell:

DECEMBER, 1 9 5 1 50 3 ''The thing mankind is seeking blindly for After the devastation of mad war Is the harmony of nations, the white peace: That miracle whose actions should increase Goodwill among the peoples of the earth. We have forgotten how the angels sang Their clear hosannas, the triumphant words that rang Above the fields that first far Christmas night. Too long we have forgotten how the white Stars echoed to the peace that was proclaimed, To the goodwill chorus, and that Christ was named The Ambassador from heaven to all men. Oh, that the angels' song might ring again! Oh, that mankind might see the dark clouds rift, And accept with childlike faith God's perfect gift! If the troubled earth would turn and kneel as one In sincere reverence before God's Son, Borders would fade, and dark suspicions cease There would be harmony, there would be peace.'' of you, Christmas Greetings to each and may the New Year bring you a full measure of happiness.

Where Are Those Campaign Funds?

AT THIS TIME of year many N.A.C.A. chapters are engaged in auditing fund drives of various community organizations, e.g., Com- munity Chest, Red Cross, etc. Their efforts and those of individual members participating in this work are a credit to the Association and a boon to the community thus benefited. The photo at left shows CEDAR RAPIDS members trying to "magnify" below par results of Red Cross drive which they audited. Won't you give them an assist, professionally as well as financially, in your community? Photo Cedar Rapids Gazette 504 N.A.C.A. BULLETIN 700 Attend New England, Northwest Conferences

O R E T H A N 700 MEMBERS and guests M attended N. A. C. A. regional cost conferences held in Providence, R. I., and Minneapolis, Minn., during the month of October. Wide regional ac- ceptance was accorded the technical pro- grams of these two -day conferences through the direct, active participation of members from fifty -eight chapters. A number of members from other regional areas and from Canada, also attended. Warnings and predictions filled the Photo Providence Journal- Bulletin air at the Northwest Regional Cost Con- National President Herman A. Papenfoth, right chap with speakers Royal Little, canter, and ference, held in Minneapolis. I. Wayne Alfred C. Neal prior to technical session at New Keller, Assistant Controller of Arm- England Cost Conference. strong Cork Co. and a National Vice Pres- ident of N. A. C. A., cautioned the more Harold W. Scott, Partner of Haskins than 300 members in attendance that the & Sells, predicted that whether business siren song of cheap dollars sounded by approves or disapproves, the principle of the excess profits tax law is making man- renegotiation in connection with govern- agement indifferent to costs and may ment procurement contracts is likely to eventually lead the national economy to stay with us for some time. 'He declared disaster. that although renegotiation is in theory Mr. Keller said that the current high an emergency wartime measure, "we may price -high tax situation tends to blind expect such control over business profits management to the need for adequate as long as the present defense program cost information. He pointed out that ir- lasts." respective of tax rates and the manner in The government, Mr. Scott pointed which they are assessed, profits after taxes out, explains that renegotiation is neces- must be maintained "to pay reasonable sary now, as in World War II, as a profit dividends and provide earnings to finance limitation measure because military pro- expansion." The best way to accomplish curement is on such a scale and conducted this, he said, is to keep production costs in such a manner as to make ineffective as low as possible. Costs should be ana- the peacetime controls through ordinary lyzed before they are incurred "if they competitive processes. The problem of are to be controlled and reduced," he determination of renegotiable sales, costs added. and profits seem much more complicated

DECEMBER, 1951 503 under present conditons than during ment in New England, in commenting World War II, he said. on competitive conditions in the region. At that time, he continued, the entire Mr. Little concentrated his remarks on output of certain companies was devoted the possibilities of development of Rhode to war production, "while today we are Island industrial areas. In this connec- attempting to carry on defense production, he urged an annual checkup on the tion simultaneously with peacetime nor- health of every industrial firm in the mal production." As a result, he ex- state, to locate weak spots in the state's plained, the segregation of income and economy. He proposed that an impartial, the segregation and allocation of direct nonpolitical group of experts including and indirect costs become a formidable bankers, industrial leaders, accountants task which will require the ingenuity of and economists conduct the evaluation on our best accounting minds. a yearly basis. James E. Caldwell, Assistant Comp- The group's findings, he felt, would troller of Goodyear Tire & Rubber Co., help solve the state's basic industrial called accountants the "watch dogs" of problem which is caused, he declared, by internal control. He said that analyses too many marginal producers and too of distribution costs are not necessarily great concentration in textiles. The mar- to bring about less spending, but to see ginal producer, he continued, regardless how effectively management is using the of the type of industry, is a detriment to money. the community, using floor space ineffec- Those in attendance at the Northwest tively, manpower inefficiently and other Conference were pleasantly surprised to community services inadequately. hear an unscheduled, inspirational ad- Tax Structure a Disadvantage dress, delivered by Harry A. Bullis, Chairman of the Board of General Mills, Mr. Neal told an audience of more Inc., and First President of the Twin Cit- than 400 that the most serious competi- ies Chapter, between conference technical tive disadvantage to industry in New sessions. England is the state and local tax pattern of the region, correctable, he added, by Community Cooperation Urged an "aroused concern" of the citizens in True regional flavor was imparted at the states involved. He pointed out that the New England Regional Cost Confer- a favorable tax structure and other incen- ence in Providence, where Royal Little, tives to industry would probably iron out President of Textron, Inc., and Alfred C. most of the competitive disadvantages im- Neal, First Vice President of the Federal posed by New England's geographical Reserve Bank of Boston, both urged position. This position, he explained, community -wide cooperation to foster results in the relatively high cost of fuel, greater industrial and economic develop- (Continued on page 508)

506 N.A.C.A. BULLETIN Hawaiian Hospitality - a la N.A. C.A.

HONOLULU—Aloha nui kakou! On November 13, a United Air Lines Strato- liner out of Los Angeles, plunked down malihinis (newcomers) National Presi- dent Herman A. Papenfoth and Secretary Arthur G. Gunnarson, at Honolulu airport for the first oficialf N.A.C.A. visit to the Hawaii Chapter in twenty -eight years. A delegation of chapter members met the visitors at the field, presented National Secretary Gunnarson (left) and President them with orchid leis and extended the themPapenfothby HAWAIIdisplay traditionalPresident Corwinleis SresentedD. a yresto hospitality of the Islands. (right) and Chapter representatives, upon arrival at Honolulu airport. The National representatives were treated to three days of activity during encountered by chapters on the mainland. which there were constant evidences of Because of its isolated position, in rela- the progressive spirit which prevails, and tion to other chapters, it has had few of the gracious living enjoyed by the opportunities to obtain speakers for its people of this outlying territory of the meetings from within the framework of United States. Gone forever was the the mainland chapter organization. Dur- once widely -held impression that Hawaii ing the late war, the Territory of Hawaii is an isolated outpost of the U. S. Hono- faced stringent security restrictions which lulu was "discovered" to be a modern hampered the chapter's ability to conduct city of 350,000 inhabitants, with wide its activities in the usual manner. In streets, luxurious parks, modern business spite of many discouragements, however, houses and hotels and a progressive out- it is strong and occupies an important look marking it as typically American. niche in the business and community life Fast, comfortable airline service links it of the Territory. to Seattle, San Francisco and Los Angeles Because of its geographical location, in a matter of ten to twelve hours. the Hawaii chapter has had infrequent In terms of N.A.C.A. history, the visits from National representatives. Dr. Hawaii Chapter is one of the oldest chap- McLeod's only visit to the Islands oc- ters of the Association. Chartered in 1922 curred in 1928. A more recent contact with approximately 30 members, it now with the chapter was made by past na- numbers almost 120 members. During tional vice president Harvey E. Stone- the course of its activities the chapter has house in 1949 in conjunction with a visit faced a number of problems not usually on personal business. No national presi- DECEMBER, 1951 507 dent has ever visited the Hawaii Chapter chapter took place on November 16, when during his term of office. an all -time high attendance record was From the time they landed at the air- reached. About seventy-five members port, the visitors were quickly made to were present. It was pointed out that of feel at home. A tour of Oahu, the island ten members who had been present at a on which Honolulu lies, gave them a meeting attended by Dr. McLeod in No- broad insight into the economic life of vember, 1928, eight were present at the Hawaii. The principal sources of income current meeting. This was an indication are, in order: (1) government payrolls, of the continuing interest which has been resulting primarily from extensive de- shown over the years by members of the fense activities; (2) sugar, (3) pine- chapter. apples and (4) tourists. Typical defense As the visitors from the mainland em- installations are the Pearl Harbor Naval barked on their return flight, they car- Base and Schofield Barracks. A tour of ried with them most vivid recollections the countryside outside of Honolulu of a virile, active chapter which is anxious quickly reveals the importance of the to welcome other members of N.A.C.A. sugar, pineapple and other agricultural who visit Hawaii. Leaving the islands industries. Broad plantations are evident by Pan American clipper for an over- on every side. night flight to San Francisco, the Presi- The national officers attended a meet- dent and Secretary were assured that they ing of the chapter's Board of Directors were now full- fledged kamaainas (old - where a great many subjects relating to timers) who should not long delay their chapter operation and Association policy return to enjoy the friendly hospitality of were discussed. A regular meeting of the the Paradise of the Pacific. A hui -hon!

700 ATTEND CONFERENCES (cont'd from page 506) electric power and transportation experi- the reluctance of some accountants to enced by industry in the region. take hold in the field for the lacks. Speaking on distribution cost analysis, Mr. Beckett urged care in setting up John A. Beckett, Assistant Professor at controls over selling to avoid friction Massachusetts Institute of Technology, with the sales force and in establishing urged increased study of the subject so advertising budgets, but he pointed out that efficiency in distribution can be in- that positive approaches can be made in creased, thus freeing productive capacity the field of effective budgeting, credit to strengthen the nation's defenses. Many review, collection costs, pre -sale handling, companies have failed to attack the prob- storage, packing, shipping, transportation lem adequately, he said, and he blamed and delivery. 308 N.A.C.A. BULLETIN The N. A. C. A. Applicant —A Profile

T CONFERENCES of chapter officers in accounting at institutions specializing A and directors, questions are fre- in the subject. About eleven per cent of quently asked as to what are the charac- all applicants have received their C.P.A. teristics of applicants for membership in degrees. the Association. Data collected by the Occupational groupings present some National Office over a period of five difficulties of classification and analysis. years, covering approximately 22,000 ap- When filling out his application for plicants, disclose a remarkably consistent membership, the applicant is confronted pattern. The typical applicant is about with a question as to his job title or thirty-three years old; in four cases out occupation. It is surprising how great of five, he has attended college; and in a variety exists. Before determining the seven cases out of ten, he is occupied di- classification for statistical purposes, the rectly with accounting duties. National Office made an extensive tabu- Data relating to age characteristics lation of the great variety of job titles show that about ten per cent of appli- that appear on applications and finally cants are under twenty -five years of age, decided upon sixty-six classifications un- forty-six per cent are between twenty -six der ten general headings. For brevity, and thirty -five, while thirty -one per cent several have been combined in the fol- are between thirty -six and forty -five. Dur- lowing data showing the proportion of ing the five -year period covered by the applicants in broad classifications: study, there has been a trend toward a Per Cent lower average age of applicants as shown Executive and managerial 15 by the following percentages of those who were 35 years or under at the time Accounting supervision 17 they joined the Association: 1946 -47, Accounting (cost, general, etc.) 39 forty -seven per cent; 1947 -48, fifty -two Public accounting and manage- per cent; 1948 -49, fifty -three per cent; ment engineering 12 1949-50,fifty -nine per cent, and 1950 -51, Other (office management, teachers, government officials, fifty -six per cent. etc.) 17 With respect to educational back- ground, the data indicate that seventy - In recognition of the fact that women eight per cent have attended college and are finding a place in the accounting forty -three per cent have college degrees. field, it is to be noted that about two per A large proportion of the above as well cent of applicants for membership are as of the remainder have received training women.

DECEMBER, 1951 509 IN THE PUBLIC EYE

San Francisco's Ira C. Chaney was elected Tri- Cities' Walter Denkmann has been ap- Second Vice President of the National pointed by the Secretary of Labor as a man- Association of Bank Auditors and Comp- agement member of the Davenport, Rock trollers at the group's twenty- seventh Island, Moline Area Labor - Management annual convention in New Orleans. Committee for Defense Manpower. . E. F. Curtis is now a Director of the Philadelphia's Jonathan D. Dickinson and Moline Association of Commerce. . Ralph L. Stauffer have been nominated Ivan D. Bull has been named President for Members of Council of the American of the newly- organized Quad -City Asso- Institute of Accountants. ciation of C. P. A.'s, Robert P. Fritzsche Binghamton's Past President Linda Stanford is Vice President, and James P. Doyle is has been elected a Director of the Amer- Secretary-Tax Collector. ican Women's Society of Certified Pub- Cincinnati's K. Y. Siddall has been appointed lic Accountants. a Trustee of the Controllership Founda- tion, research arm of the Controllers Insti- Washington's Stanley J. Curran is now with tute of America. the Defense Production Administration as Financial and Industrial Analyst. Chicago's George II/. Miller has been transferred to Houston, Texas, as Auditor -in- Boston's Frederick L. Patton was recently Charge of the Houston area, U. S. Army elected National Treasurer of the Tax Audit Agency. Executives Institute, Inc., at the group's sixth annual conference. . . . Lloyd D. Milwaukee's Edward C. Jordan has been Tarlin has been appointed to serve as a named Financial Secretary to Joseph P. member of a committee to discuss finance Kennedy, former ambassador to England, and control at the eighteenth annual meet- with headquarters in New York. ing of the National Association of Food Baltimore's Howard E. Cooper has been Chains. named Associate Dean of McCoy College. Rochester's Harold A. Ketchum has been Richmond's R. B. Tate served as moderator of elected a National Director of the Con- one of the discussions on the Insurance trollers Institute of America. Industry at the National Conference of In- ternal Auditors held in New York during Atlanta's W. C. Hurt served as Chairman, representing Industry, and D. F. Hampson October. and J. O. Shuford served as members, of Birmingham's T. G. Phillips has been elected an O.P.S. panel discussion between gov- Vice Chairman of the Allied Industries ernment and industry representatives at Credit Executives. the recent Southern Bakers Association Worcester's Vera Green addressed the fourth Conference. annual Office Management Institute at the Syracuse's Webster T. Haven was elected University of Maryland on the topic, Vice President of the National Associ- "Women at Work." ation of Foremen at the group's re- St. Louis' C. Arthur Weis was elected Vice cent convention in Chicago. . . . Past President of the Institute of Newspaper President L. F. Spaulding was recently Controllers and Finance Officers at the elected President of the local chapter of group's fourth annual meeting. the Tax Executives Institute, Inc., with Bernard Whitbread named Second Vice Kansas City's Jack Batchler was recently President and George A. Small, made elected National President of the Life Treasurer. Office Management Association at its annual meeting in Chicago. . . Past Presi- Columbus' Horace W. Domigan has been dent James P. Compton is the author of installed as President of the local chapter an article appearing in the October issue of the Ohio Society of Certified Public of the Journal of Accountancy, entitled Accountants, with James McCoy taking "How an Index Helps Make Accurate office as Vice - President. Sales Forecasts —the Heart of the Budget."

510 N.A.C.A. BULLETIN GRATULATIONS TO EE . . . .

Art Weaver, LOS ANGELES, promoted to Charles F. NOell, PHILADELPHIA, appointed Assistant Treasurer, Fernstrom Paper Vice President — Finance and Treasurer, Mills, Pomona, Cal. . . D. W. Ashley, A. C. F. Brill Motors Co. . . . Wilford appointed Controller and Assistant Man. L. Ottey, named Chief Cost Accountant, ager, Continental Sales and Service Co. SKF Industries, Inc. . . . Kenneth H. Walter Bosse, EVANSVILLE, promoted to Bergstrom, now Manager of Production, Philadelphia Division, Yale & Towne Factory Auditor, Chrysler Plymouth Corp. Mfg. Co. Robert A. Miller, KALAMAZOO, promoted to Herbert A. Johnson, Past President of Plant Controller, Kalamazoo Vegetable BROOKLYN Chapter, elected Treasurer, Parchment Co.; William Hess, named Assistant Secretary - Treasurer; Stewart Kenmore Metals Corp., Jersey City, N. J. Geelhood, made General Accounting James M. Archer, Past President of HAGERS- Supervisor and Robert Bristol promoted TOWN Chapter, appointed Director of the to Ofice Manager. Accounting Department, Fairchild Air- James P. Gontley, HARTFORD, elected a Di- craft Division. rector, Fenn Manufacturing Co. . . . Michael A. Gudman, PORTLAND, now Con- Harold B. BasseNe, promoted to Treas- troller, Industrial Air Products. urer, Tuttle & Bailey, Inc. Theodore F. Olson, Jr., formerly of MIL- Alden L. Bennett, SAN FRANCISCO, promoted WAUKEE, now Controller, Free Sewing to Treasurer, Crown Zellerhach Corp.... Machine Co., Rockford, 111. John R. Stewart, now Regional Sales Manager, Charles R. Hadley Co. Raymond W. Schmidt, JACKSON, now Office Manager, Warren Hood Lumber Co. Frank Gafford, BIRMINGHAM, now Assistant Secretary - Treasurer, Baggett Transporta- Edward S. Manka, CHICAGO, made Compp- tion Co. troller Scholl Mfg. Co. . . . Paul B. Robert W. Zimmerman, GREENWICH -STAM- Sehueeking, appointed Comptroller and Treasurer, Scott Radio Corp. FORD, promoted to Assistant Chief Aud- itor, Creole Petroleum Corp. William R. Thomas, SAN FRANCISCO, ap- Harvey J. Naughton, PITTSBURGH, appointed pointed Controller, Cutter Laboratories, Assistant to the Executive Vice President, Berkeley, Cal. Jones & Laughlin Steel Corp. Norman F. Kruse, Director of Program of E. L. McKague, SABINE, now Senior Account- MUSKEGON Chapter, made Assistant Chief ant and Analyst, Day & Zimmerman Co., Accountant, Sealed Power Corp. Texarkana, Tex. Roscoe C. Smith, PITTSBURGH, elected Comp- Ferdinand W. Bobriek, ELMIRA AREA, named troller, Hazel -Atlas Glass Co. to supervise Main Plant Cost Office, Corn- ing Glass Works. Warren Bandel, SAN ANTONIO, now Auditor, San Antonio Music Co. Thomas B. Frank, LONG ISLAND, now Man- agement Consultant of newly - formed firm Mortimer R. Odermatt, Past President of of Thomas B. Frank Associates, Mineola, NEW YORK Chapter, transferred to New N. Y. Bedford, Mass., as Controller and Assist- ant Treasurer, Seaplant Chemical Corp. George J. McKnight, formerly of BUFFALO, transferred to Detroit as Assistant to the Edward J. Dietrich, and Thomas D. Lyons, Treasurer, The Timken- Detroit Axle Co. MILWAUKEE, appointed Assistant Control- lers, Allis - Chalmers Mfg. C o . . . . Donald Donald S. Adam, LANSING, appointed Assist- H. Cramer, transferred to Detroit as ant Manager of the local office of Ernst National Director of Education and Re- & Ernst. search, Touche, Niven, Bailey & Smart.

DECEMBER, 1 9 5 1 3 1 1 COST CURRENTS

Short Reports on Items of Current Interest to Industrial Accountants

Defense Regulation Digest—A new gov- difficulties being experienced in securing sound ernment publication intended to fill the need figures for estimates of quarterly metals needs. for a comprehensive summarization of actions Closer industry- government cooperation is pre- of agencies constituted under the Defense Pro- dicted. 1950, duction Act of as amended, has become Tools Are for Defense—With the issuance available. It has been named "Abstract of De- of MO -41A, the Amendment of MO -41 and fense Regulations" and may be obtained from the revocation of MO -40 —all relating to ma- the Superintendent of Documents, U. S. Gov- chine tools —the National Production Author- ernment Printing Office, Washington 25, D. C. ity has moved further in the direction of de- at an annual subscription price of $6. voting the machine tool' production of the The "Abstract" is reported as intended to nation exclusively to the filling of rated orders. serve as an orientation medium as well as a MO -41A became effective on November 8 digest. In this direction, as opportunity offers, and provides, in general, that manufacturers functions of Control Agencies and their divi- whose operations have been expanding may be sions are to be identified, together with par- eligible to place rated orders, while those ticularization of offices serving as informa- whose operations have declined are eligible tional sources. only for provable replacement needs, on the The new periodical is in line with a recom- presumption that their tool requirements will mendation recently made by the Advisory be satisfied (on a basis of relative importance) Council on Federal Reports which serves as a in this way. nongovernment contact body to the U. S. The revision of MO -41 forbids shipment of Bureau of the Budget. nonrated tool orders after February 1, with Fortunes of CMP—The third quarter of minor exceptions. In the revised MO -41 there operation of the peacetime version of the Con- has been incorporated certain provisions from trolled Materials Plan —the first calendar MO -40. The latter, providing machine tool quarter of 1952—is forecast as a testing time builders with priorities for scarce materials, for the effectiveness of materials control as has been rescinded because its function has now set up. The recent announcement by been supplanted by the Controlled Materials NPA, applicable to the first three months of Plan. 1952, of civilian restricted metals quotas in Voluntary Credit Curb Plan Guide—Self- terms so tight as to arouse protests from many policing by banks of commercial and industrial lines, points up this forecast. The two earlier credit in the interests of national defense quarters, the third and fourth of 1951, saw, needs and under a voluntary program formal- first, the application of CMP to the use of ized last Spring by the Federal Reserve Board, steel, copper, and aluminum in a wide range has resulted in a record of experience of loan of particular products and then to the use approval and rejection recommendations in line of these metals in any and all products. with standards laid down. A portion of this A feature article in Business Week, Octo- experience is presented in material recently ber 27, 1951 issue (page 165) discusses the released by the Reserve Board's National Vol- 312 N.A.C.A. BULLETIN untary Credit Restraint Committee in the form do not become mandatory until December 19• of a digest of recommendations on some sixty Among the further orders specifically ex- loan applications. pected are two. One, it is anticipated, will The recommendations under the program, extend the Capehart Amendment to CPR 1 which are not binding, are made by regional for automobile manufacturers and the other committees upon the request of lenders. is planned as an addition to the series of general over- riding regulations, with the aim of OPS Takes the Plunge—The forward move- placing smaller manufacturers in most lines ment in price control was resumed by changes under price ceilings required by the Capehart in general and machinery manufacturers price clause. ceiling regulations, effective November 9. This Panel Report on Pension Plans—The movement had been all but suspended since Wage Stabilization Board currently has before June 30 when the interim July extension of the it the conclusions of its panel set up to study controls law had the general effect of freezing the place of pension and employee benefit ceilings at that point and was followed by ex- plans in wage control. The panel majority, tension to June 30, 1952 incorporating the Capehart clause, debated after its enactment in the report submitted in October, would not to the final days of the last session of Congress. require prior WSB approval of pension plan The present changes (and prospective changes in actions constituting: other ceiling regulations which may have been 1. Amendment of present plans (not in- issued between the copy and press dates of this creasing employee contributions). month's N.A.C.A. Bulletin) work into the 2. Adjustment of benefits to maintain a pricing provisions the terms of the Capehart cost -of- living or pay level relationship. clause, among which are the recognition of cost increases to July 26, 1951 and increases in 3. Extensions of plans (even if by a new overhead costs. and comparable plan) to more workers. The new regulatory provisions effective No- 4. New plans not exceeding the "limits of vember 9 are (to CPR 22 for general manu- industrial practice." facturers) Amendment 33 and Supplementary The last given point is considerably qualified. Regulation 17 and (to CPR 30 for machinery manufacturers) Revision 1 to Supplementary Among other things, it requires approval of the Regulation 1, Amendment 20 and Supplemen- plan for tax purposes by the Bureau of In- tary Regulation 4. The two new Supplementary ternal Revenue and absence of provision for Regulations, which superimpose the Capehart so- called intermediate benefits, i.e., payments provisions on those of the original regulations, before death, disability or retirement age.

Seek Test Applications of Adjusted Financial Statements Including in its presentation an appeal for practical tests of its conclusions, the American Accounting Association's Committee on Concepts and Standards Underlying Corporate Financial Statements, has issued its Supplementary Statement No. 2, published in the October 1951 issue of the Accounting Review. The stand is taken that historical dollar costs not modified for price level changes should continue to form the basis of "primary financial statements." However, it is also contended that "the time has come to give adjusted dollar statements a thorough test. Such statements should now be, and may continue to be, supplementary to the financial statements based on historical dollar cost." Three premises on which the tests might well be conducted are specified. These may be briefly identified as use of a general price level index, adjustment of all financial statement items to the extent appropriate, and full reconciliation to the statements based on historical dollar cost. DECEMBER, 1951 513 STEVENSON TROPHY COMPETITION Standings of Chapters -Five Months Ended November 1, 1951

PLACE CHAPTER POINTS PLACE CHAPTER POINTS

I. W ATERLOO 2,896 55. SHREVEPORT 1,612 2. SAN DIEGO 2,302 56. CHATTACHOOCHEE...... VALLEY 1,610 ...... 3. KANSAS CITY 2,274 57. HARTFORD 1,608 ...... 4. HOUSTON ...... 2,225 58. READING 1,607 5. INDIANAPOLIS 2,164 59. PEORIA ...... 1,595

...... 6. PATE RSON ...... 2,088 60. CHICAGO ...... 1,594 7. FALL RIVER...... 2,071 61. DALLAS ...... 1,591 8. AKRON 2,052 62. CINCINNATI 1,587 ...... 9. OMAHA 2,044 62. SAN FRANCISCO 1,587 ...... 10. WABASH VALLEY...... 2,040 64. BINGHAMTON 1,586 11. BALTIMORE 2,026 65. EVANSVILLE ...... 1,582 ...... 12. WICHITA 2,008 66. ROCKFORD 1,579

...... 13. CHARLOTTE...... 1,997 66. YORK ...... 1,579 13. SPRINGFIELD ...... 1,997 68. DAYTON ...... 1,574 15. ERIE 1,994 69. LONG ISLAND 1,564

...... 16. LANCASTER...... 1,972 70. DETROIT ...... 1,549 17. MID - HUDSON...... 1,951 70. HARRISBURG 1,549 18. ELMIRA AREA 1,907 72. NEW YORK ...... 1,542

...... 19. LOS ANGELES ...... 1,896 73. PHILADELPHIA 1,539 20. KALAMAZOO 1,889 74. COLUMBUS ...... 1,534 ...... 21. MERRIMACK VALLEY 1,867 75. NASHVILLE 1,527 ...... 22. DES MOINES ...... 1,864 76. NEW HAMPSHIRE 1,507 23. NEW ORLEANS...... 1,847 77. GREENWICH-STAM FORD...... 1,497 24. FORT W ORTH 1,839 78. SOUTHERN MAINE 1,493 ...... 25. MOHAWK VALLEY...... 1,832 79. PITTSBURGH 1,481 26. FOX RIVER VALLEY 1,813 80. PIEDMONT ...... 1,472

...... 27. WORCESTER 1,808 81. SYRACUSE 1,460

...... 28. SABINE ...... 1,804 82. FORT WAYNE 1,459 29. DENVER 1,777 83. LOUISVILLE ...... 1,455 ...... 30. BUFFALO 1,773 84. CUBA 1,442 ...... 31. BANGOR ...... 1,772 85. WASHINGTON 1,440 32. GRAND RAPIDS 1,766 86, SAN ANTONIO ...... 1,434

...... 33. BIRMINGHAM 1,758 87. WILLIAMSPORT 1,406 ...... 34. TWIN CITIES ...... 1,731 88. YOUNGSTOWN 1,377 35. HAGERSTOW N 1,719 89. NEWARK ...... 1,376

...... 36. MILWAUKEE 1,710 BROOKLYN ...... 90. 1,375

...... 37. ALBANY 1,708

...... 91. CHATTANOOGA 1,345 38. TRI- CITIES ...... _ .... 1,706 92. LANSING ...... 1,340 39. MUSKEGON 1,696 ......

...... 92. RICHMOND 1,340 ...... 40. PROVIDENCE 1,691

...... 94. SANGAMON VALLEY 1,336 41. ATLANTA 1,690 ......

...... 95. CALUMET 1,320 42. LEHIGH VALLEY 1,684 ......

...... 96. CLEVELAND 1,312 ...... 43. BATON ROUGE 1,683 97. JAGESTOWN 1,298 ...... 43. BOSTON . 1,683 98. NORWICH 1,293 ...... 45. HAMPTON ROADS . 1,672 99. SEATTLE ...... 1,291 ......

46. TULSA 1,670 100. SOUTH BEND 1,281 ._ ...... 47. BRIDGEPORT 1,664 101. HAWAII ...... 1,276 48. ROCHESTER ...... 1,651 102. NEW HAVEN 1,259 ......

49. ST. LOUIS 1,650 103. COLUMBIA 1,236 ...... 50. TOLEDO ...... 1,649 104. MEMPHIS 1,230 ...... 51. WATERBU RY...... 1,647 105. SAGINAW VALLEY 1,223 ...... 52. SCRANTON 1,635 106. JACKSON ...... 1,206 ...... 53. NORTHERN WISCONSIN . 1,623 107. PORTLAND 978 ...... 54. CEDAR RAPIDS ...... 1,620 108. ANNISTON 973 ...... 514 N.A.C.A. BULLETIN LITERATURE NOTES

Books and Pamphlets Backdrop to Accounting Rewards of Leadership More than Supply and Demand Compensating the Corporate Execu- five Industrial Pricing and Market Prac- George T. Washington and V. Henry Rotbr- tices child, 2nd, Ronald Press, Revised Edition, Alfred R. Oxenfeldt, Prentice -Hall, 1931, 1931, pp. $12 602 pp., $7.63 The types of executive pay arrangements here Addressed to students of economics and of considered and exemplified include profit -shar- marketing and to business executives, this ing plans, stock bonus, option and purchase volume systematically surveys the place of plans, deferred compensation, and pensions price in the American industrial and social and annuities. A second edition, the work is setting and the factors within and without in- offered as up -to -date in its treatments. Lead- dividual enterprises which influence pricing. ing legal cases on executive compensation are Toward the close appear two chapters entitled, discussed. respectively, "Case Study of Whiskey Prices" and "Case Study of Steel Prices." Modern Design Billions of Talents Forms Control Capital Budgeting N. 0. Couvillon, Author - published, paper Joel Dean Columbia University Press, 1931, 174 pp., 13.00 bound, 1931, 19 pp. Management's broad problem in administer- This pamphlet, in a dozen concise sections, covers some familiar ground in a readable ing the stockholders' investment for profit re- manner and works up to recommendations for ceives diversified attention in this study. Chap- the use of physical and functional standards ter titles such as "Replacement Investments," "Expansion Investments," "Product Invest- for forms and the establishment and organi- ments" and "Strategic Investments" reflect the zation of a forms control staff. Embodied in approach taken. It is stated at the start that, the material is experience of the author's "planning and control of capital expenditures company, Esso Standard Oil Co. at Baton is the basic top- management function —." Rouge, La.

Articles Challenges of the Present lic accountant, this article may be taken as At the Nub of A Culture applicable to the industrial accountant also, so far as he may be viewed as a consellor to his Public Accountants Need to Gird Themselves Psychologically as Well operating management. It has a further rele- as Technically for Expended Useful- vance also, dealing as it does with the se- ness curing of integrated solutions to problems in William L. Campfeld, The New York Certi- fied Public Accountant, October 1931 a world in which specialization has created a Written to broaden the viewpoint of the pub- mental provincialism.

DECEMBER, 1 9 5 1 5 1 3 Ceiling Protests scriptive position in which it will contain How to Prepare Accounting Data for action meanings to accountants and operating Presentation to OPS in Price Appeal Cases personnel alike. It is represented to cover Paul M. Green, Journal of Accountancy, No- effective organization, adequate authorization vember, 1931 and record procedures, adherence to sound A brief resumE of the organization and serv- functional practices, and the matching of per- ices of the Office of Accounting established sonnel with responsibilities. within the Office of Price Stabilization is given in this article. One of its principal functions The Language of Accounting is set forth as "securing and analyzing finan- Point at Issue cial and cost data from business concerns for Should Financial Statements Show the various uses of price control." "Monetary" or "Economic" Income? Delmer P. Hylton, The Accounting Review, Can Yo u G o U p ? October 1931 What Wage and Salary Increases There is the reminder in this paper that "the Are Permitted? customary transactions of the business world Benjamin Werne, Dun's Review, October 1951 are based on monetary, not economic, values" In this fairly extended paper, there is a re- and the conclusion that "until all business view of significant Wage Stabilization Board transactions are by some means converted and Salary Stabilization Board regulations to from the basis of monetary units to purchas- the date of its writing. Bonus polity, new -job ing -power or some other method of reporting rates and enforcement procedures are among 'economic income', it seems that accounting the subjects dealt with. statements will best serve their purpose by Fundamentals Are Fundamental adhering to the usual accepted standard of Adaptable Technique measure, the dollar." Standard Cost Accounting for the Two-Part Problem Small Manufacturer Structural Changes and General 1. S. Gusta/son, The New York Certified Pub- lic Accountant, October 1951 Changes in the Price Level in Rela- tion to Financial Reporting About his subject, the author of this article John E. Kane, The Accounting Review, Oc- writes in an early paragraph "... if there is tober 1951 any one stronghold of resistance (to stand- The material here taken up concerns changes ards) remaining, it is concentrated among the in the relationship of prices to each other and small businessmen who ... view standards as changes in the general price level. It is pointed an expensive tool. . . . This certainly is not out that the two factors have not ordinarily the case.... The principles of standard cost been considered separately in recent literature accounting . . . are particularly adaptable to on the need for and methods of reflecting in simplified procedures for the smallest manu- financial statements gains or losses from eco- facturing company." A description of pro- nomic changes affecting the "real" value of cedures of this sort forms the body of the goods or services or of the currency in which these values are stated. paper. Secondary Impact A Case of Identity The Influence of Depreciation Ac- Internal Control Is Cost Control counting on National Income H. M. Stiller, The Controller, October 1951 Eldon S. Hendrikson, Accounting Review, Oc. The endeavor of this paper is to place a tober 1931 phrase which has suffered clich@ deterioration Discussion presented in this article relates —i.e. the words "internal control " —in a de- (Con tin ued on page 52 3)

316 N.A.C.A. BULLETIN CHAPTER MEETINGS

AKRON, Ohio December 19 BIRMINGHAM, Ala. December 18 Akron Woman's City Club Tutwller Hotel Managerial Accounting— WILLIAM J. Accounting for Plant Expansion —LAU- VATTER, Prof., Acct'g, Univ. of Chicago, RENCE D. LUEY, Controller, Connors Chicago, Ill. Steel Co., Birmingham, Ala.

ALBANY, N. Y. December 18 BOSTON, Mass. December 12 Wolfert's Roost Country Club Hotel Bradford Reducing the Cost of Unemployment Current Income and Excess Profits Tax Under the Hughes -Breen Amendment to Problem— MAuRIcE AUSTIN, Partner, the New York State Unemployment Klein, Hinds and Finke, N. Y. C. Insurance Law—MILTON O. LOYSEN, BRIDGEPORT, Conn. December 18 Exec. Dir., Div. of Placement and Un- Barnum Hotel employment Insurance, N. Y. State How We ll Do Yo u Know Your Job? Dept. of Labor, Albany, N. Y. —DAVID P. FRY, Jr. Vice Pres., Pioneer Suspender Co., Philadelphia, Pa. ANNISTON, Ala. December 27 Y.M.C.A. BROOKLYN, N. Y. December 19 Hidden Taxes in Cost Manufacturing — Clement's Club WINSTON BROOKE, C.P.A., Anniston, Physical Inventory, Taking & Pricing — Ala. W. F. BURKE, Asst Sect'y, Scoville Mfg. Co., Waterbury, Conn. ATLANTA, Ga. December 18 Ansley Hotel BUFFALO, N. Y. Dezember 16 Income and Excess Profits Tax Prob- Buffalo Trap and Field Club lems—FURMAN SMITH, Attorney, Spald- The Business Prospect — NORRIS O. ing, Sibley, Troutman & Kelley, Atlanta, JOHNSON, Ass't Vice Pres., National Ga. City Bank of N. Y., N. Y. C. CALUMET December 11 BALTIMORE, Md. December 18 Sheraton Befivodere Hotel Hotel Gary Cost Determination for Government The Accountant's Part in Management Contracts: Panel Discussion —EARL R. — FREDERICK M. GILMES, Exec. Vice UHLIG, LOWELL SMITH and AUSTIN Pres., Acme Steel Co., Chicago, Ill. B. SPEED. CEDAR RAPIDS, Iowa December 11 Montrose Hotel BANGOR, Me. December 17 Does the Balance Sheet Reflect Manage- Bangor Howe ment?—MARSHALL CORNS, Mgr., Bank job Evaluation —E. ROBERT LIVERNASH, Div., Wolf & Co., Chicago, Ill. Dir., Economic and Labor Research, J. F. McElwain Co., Nashua, N. H. CHARLOTTE, N. C. December 14 Mecklenburg Hotel BATON ROUGE, La. December 19 You and the Stock and Commodity Mar- Heidelberg Hotel keIS —JACK P. FAIRLEY, Acct. Exec., Some Aspects of the Revenue Bill of Merrill, Lynch, Pierce, Fenner & Benne, 1951— ALLISON R. KOLB, C.P.A., Kolb Charlotte, N. C. and Bernard, C.P.A.'s, Baton Rouge, La. CHATTAHOOCHEE VALLEY Dezember 10 Ralston Hotel Columbus, Go. BINGHAMTON. N. Y. December 20 Attributes of a Scientific Management Arlington Hotel and the Place of Accounting in the Or- The Two -Year College Educates Youth ganization —JAMES C. PRATHER, Exec. for Life —C. C. TYRELL, Dir., N. Y. Vice Pres. and Gen. Mgr., J. A. Kirven State Univ., Binghamton, N. Y. Co., Columbus, Ga.

DECEMBER, 1 9 5 1 317 CHATTANOOGA, Tenn. December 20 DES MOINES, Iowa December 12 Hotel Peften Standard Club Payroll Practicer and Procedures —VANN Professional Gi f ts—EDMUND T. PRICE, A. MEADOR, Controller, Harriman Mfg. Pres., Solar Aircraft Co., San Diego, Co., Chattanooga, Tenn. Calif. CHICAGO, Ill. December 6 DETROIT, Mich. December 13 Furniture Mart Veteran Memorial Bldg. Applying Office Machines to Current Influence of Financial Reports on Policy Accounting Problems —JOHN MARLEY, Making of Top Management—CHRIS- Superv., Special Service Staff, Ernst and TIAN E. JARCHOW, Vice Pres. and Con- Ernst, Chicago, Ill. troller, International Harvester Co., Chi- CINCINNATI, Ohio December 13 cago, Ill. Hotel SherotomGibsoo ELMIRA AREA December 11 Current Economic Conditions in the Mark Twain Hotel Elmira, N. Y. Netherlands —BENNO BENNINGA, Leeu- What Management Wants From the warden, Holland. Accountant — EUGENE W. RITTER, Vice Pres., Electronic Tube Div., Westing- CLEVELAND, Ohio December 20 house Electric Corp., Bloomfield, N. J. Hotel Carter Inventory Costs and Valuations —C. R. ERIE. Pa. Dezember 17 FAY, Controller, Pittsburgh Plate Glass Erie Moose Club Co., Pittsburgh, Pa. Santa Claus and Taxes—SAMUEL M. BAKER, Partner, English and Baker, COLUMBIA, S. C. December 20 Erie, . Pa. JeAerson Hotel EVANSVILLE. Ind. December 20 Development of the Cost System —T. R. HOSICK, Principal, Wilson, Hosick & Alpine House Co., Winston - Salem, N. C. Effective Management Through Control —HARRY HODGE, Controller, Allen B. COLUMBUS, Ohio December 12 Wrisley Co., Chicago, Ill. Hotel Fort Hayes FALL RIVER, Mass. December 13 Tax Planning —JOHN C. MARTIN, Part- Stonebridge Inn Tiverton, R. 1. ner, Keller, Kirschner, Martin & Clinger, Recent Developments in Federal Taxa- Columbus, Ohio. tion—EDWARD J. KEELAN, JR., Hale & CUBA December 19 Dort, Boston, Mass. Basis for Development of the Cuban FORT WAYNE. Ind. December 12 Economy —RAUL MAESTRI ARREDONDO, Chamber of Commerce Attorney, Member, Nat. Council of Man- Break Even Charts—ARTHUR H. SMITH, agers & Publishers. Asst. Controller, General Mills, Inc., Minneapolis, Minn. DALLAS, Texas December 21 Melrose Hotel FORT WORTH, Texas December 13 Cost of Good Methods —RALPH S. Worth Hotel HULL, Vice Pres. and Gen. Mgr., Man- Oil & Gas Payments—KENNETH G. agement Engineers, Inc., Fort Worth, MILLER, Mgr., Tax Dept., Houston Of- Texas. fice, Arthur Young & Co., Houston, Texas. DAYTON, Ohio December 18 Engineers Club FOX RIVER VALLEY Dezember 5 Human Relations in Industry and Their Fairbanks Georgian Rm. Aurora, III. Effect on Costs—FRED SMITH, Vice The Case for Lifo—RICHARD C. BRANDT, Pres, Industrial Relations, Wm. Powell Partner, Arthur Andersen & Co., Chi- Co., Cincinnati, Ohio. cago, Ill. DENVER, Colo. December 18 GRAND RAPIDS December 18 University Club Rowe Hotel The Latest Income Tax Law: Panel Dis- Inventory and Production Control as it cussion— Moderator: V. V. B. PAUL, A §ects the Accountant —J. E. DE MoTs, Internal Revenue Agent in Charge, Dept. Asst Mgr., Material Control Dept., of U. S. Internal Revenue, Denver, Colo. Intern'l Harvester Co., Chicago, Ill.

518 N.A.C.A. BULLETIN GREENWICH- STAMFORD December 18 JAMESTOWN. N. Y. Dec. 18 Half -Way House Darien, Conn. Hotel Jamestown Legal Aspects of Business — RAYMOND Relation of the Industrial Accountant E. BALDWIN, Associate Justice of Conn. and the C.P.A.—C. MELVILLE KLESS, Supre me Court, Hart ford, Conn. Part ner, Rupert G. Fain and Co., Rochester, N. Y. HAGERSTOWN, Pa. December 13 Home Spun Inn. Chombersburg, Pa. KALAMAZOO, Mich. December 18 A Crystal Ball for the Cost Accountant Columbia Hotel — CLAIR W. BENDEL, Chief Cost Ac- Racketeers and the Revenue —PETER P. count ant, N e w Hol l and Machine Div. BOUCHER, Asst. Internal Revenue Agent of the Sperry Corp., N e w Hol l and, Pa. in Charge of the Detroit Div., Detroit, Mich.

HAMPTON ROADS, Va. December 19 KANSAS CITY, Mo. December 17 Hague Club President Hotel Human Relations in Indujtry— THOMAS Profit Is My Business--and Yours —J. L. CARROLL, Asst. to Exec. Vice Pres., CURRAN FREEMAN, Controller, Ford Nat i onal Cot ton Council of America, Div., Ford M ot or Co., Chi cago, Ill. Charlotte, N. C. LANCASTER, Pa. December 21 HARRISBURG, Pa. December 18 Hotel Brunswick Penn Harris Hotel The Outlook for Petroleum and Busi- Federal Income Taxes —EDGAR J. GOOD- ness in 1952— ALBERT J. MCINTOSH, RICH, Attorney, Washington, D. C. Economist, Socony- Vacuum Oi l CO., N. Y. C.

HARTFORD, Conn. December 11 LANSING, Pa. December 13 Indian Hill Country Club Newington Union Building East Lansing Accounting for Controllable Costs — Budgeting for Profit Control— ARTHUR JOHN STARR, Ensign- Bickford Co., H. SMITH, Asst. Controller, Ge ne ral Simsbury, Conn. Mills, Inc., Minneapolis, M i nn.

HAWAII December 21 LEHIGH VALLEY December 14 Oahu Country Club Honolulu Hotel Bethlehem Bethlehem, Pa. Review of Federal Income Taxes —J. Direct Cost Accounting Objectives — RUSSELL CADES, Partner, Smith, Wi l d, JONATHAN N. HARRIS, Comptroller, Beeb & Cases, & HERBERT S. DUNN, De we y & Al my Chemical Co., Cam- Partner, Cameron, Te nne nt & Gre ane y, bridge, Mass. Honolul u, T. H. LONG ISLAND, N. Y. December 11 Garden City Hotel HOUSTON, Texas December 17 Planning —A. D. MACKIN- Weldon's Cafeteria Insurance NON, Eastern Sales Mgr., Prude nti al Procedure in Handling Tax Cases and Insurance Co., N. Y. C. Some Observations in Respect of Recent Legislation— ROBERT ASH, Attorney, LOS ANGELES, Calif. December 18 Robert Ash, Attorney, Washington, Elks Club D . C. Trends in Income Taxation — ARTHUR J. HAIR, Attorney, Los Ange les. INDIANAPOLIS, Ind. December 12 Mara" Hotel LOUISVILLE, KY. December 18 Information Please: Panel Discussion — Kentucky Hotel Mode rat or: EDWARD J. DoWD, Con- Federal Income Tax Forum—LOUIS troller and Secty., Schwitzer- Cummins ACKERSON, W. WALTER GROGAN and Co., Indianapolis, Ind. AUSTIN GRESHAM.

JACKSON, Miss. December 13 MEMPHIS, Tenn. December 19 Walthall Hotel Hotel King Cotton Interesting Facts About Personal Liabil- Current Tax Developments —W. G. ity Policies —FRANK WATSON, Prof., BOONE, Attorney, Canale, Glankler, Lit- Miss. State College, State College, Miss. tle, Boone & Loch, Me mphis, T e nn.

DECEMBER, 1 9 5 1 5 1 9 MERRIMACK VALLEY December 12 NEWARK, N. J. December 13 Andover Country Club Andover, Mass. Robert Treat Hotel Human Relation in Business —T. NORTH Profit Path Control —FRED V. GARDNER, WHITEHEAD, Prof., Radcliffe College, Fred V. Gardner & Assoc., Milwaukee, Cambridge, Mass. Wisc.

MID -HUDSON December 17 NORTHERN WISCONSIN December 18 Nelson House Poughkeepsie, N. Y. Northland Hotel Green Bay Business Outlook for 1952— COURTNEY Statistical Methods and Cost Control — C. BROWN, Asst. to Chairman, Board CARL NOBLE, Chief Statistician, Kim- of Dir., Standard Oil Co. of N. berly -Clark Corp., Neenah, Wisc. N. Y. C. NORWICH, Conn. December 20 Commerce Club MILWAUKEE, Wisc. December 17 Milwaukee Athletic Club Simple Statements for Complicated Sit- Profit Paradoxes— NORMAN A. LOAN, uations— MAURICE E. PELOUBET, Part- ner, Pegson, Peloubet & Co., N. Y. C. Mgr., Sales Control Dept., Marathon Corp., Menasha, Wisc. OMAHA, Nebr. December 18 Fontenelle Hotel MOHAWK VALLEY December 17 Internal Control Through System De- Hotel Utica Utica, N. Y. sign—ELDON PRIEBE, Internal Audtior, Income Tax: Panel Discussion —Mod- Skelly Oil Co., Tulsa, Okla. erator: JOHN A. MOORE. PATERSON, N. J. December 12 MUSKEGON, Mich. December 10 Tree Restaurant Cottage Inn. Trends in the Expectations of Business- M. I. and P. V. Alphabetical Controls men —ARCH RAUB, Mgr., Special Serv- for Management, Not Government — ice Div., Dun & Bradstreet, N. Y. C. R. C. TRUNDLE, Operating Vice Pres., Trundle Engineering Co., Cleveland, PEORIA, ILL. December 19 Ohio. Jefferson Hotel The Accountant's Contribution to Policy NASHVILLE, Tenn. December 11 Decision —MASON SMITH, Partner, A. T. Andrew Jackson Hotel Kearney & Co., Chicago, III. Internal Control of Hotel Operations — E. M. TURLINGTON, Gen. Auditor, PHILADELPHIA, Pa. December 20 Dinkler Hotels Co., Inc., Atlanta, Ga. Kugler's Restaurant Case Studies in Standard Costs: Panel NEW HAMPSHIRE December 18 Discussion— Moderator: JAMES M. HEP- Calumet Club Manchester, N. H. PENSTALL, Treas., Birdsboro Foundry & Federal Taxes—WILLIAM A. SCHAN, Machine Co., Birdsboro, Pa. Price Waterhouse & Co., Boston, Mass. PIEDMONT December 14 O'Henry Hotel NEW HAVEN, Conn. December 11 Seven Gables Towne House What Management Needs in Cost Re- porIS —MR. MARION W. HEiss, Exec. Presenting Essential Information to Vice Pres., Cone Mills Corp., Greens- Management and Stockholders —HENRY boro, N. C. E. GREENE, Partner, Peat, Marwick, Mitchell and Co., N. Y. C. PITTSBURGH, Pa. December 12 Hotel Wm. Penn NEW ORLEANS, La. December 20 The Educational Training and Selection New Orleans Country Club of Cost Accountants— THOMAS A. BUDD, Tax Planning —J. EARL PEDELAHORE, Vice Dean and Chairman of the Ac- Partner, Pedelahore & Kiser, New Or- counting Dept., University of Pa., Phila- leans, La. delphia, Pa.

NEW YORK, N. Y. December 17 PORTLAND, Or e. December 18 Belmont Plata Heathman Hotel Business Outlook for 1952— MARTIN Accountants and Fire Losses —CLAR- R. GAINSBRUGH, Chief Economist, Nat'l ENCE WALLS, Partner, C. W. Walls & Indust. Conf. Board, N. Y. C. Son, Portland, Ore.

520 N.A.C.A. BULLETIN PROVIDENCE, R. I. December 17 SAN DIEGO, Calif. December 19 Narragansett Hotel Cuyomaco Club America's Competitive Position in Corporation Taxes: Panel Discussion — World Markets— ROBERT J. DIXSON, CARL M. ESENOFF, CLINTON S. Asst. Dir. of Overseas Operations, John- MCCRAKEN, & RAYMOND M. WANSLEY. son & Johnson, New Brunswick, N. J. READING, Pa. December 21 SAN FRANCISCO, Calif. December 18 Wyomissing Club Engineers Club Internal Control— PHILIP C. SALMAN, Current Cost Problems: Panel Discus- Asst. Controller, Socony- Vacuum Oil sion— Co., N. Y. C. SANGAMON VALLEY December 18 RICHMOND, Va. December 13 Elks Club Springfield, III.

Hotel Richmond Interpreting Financial Statements — Contributions of the Accountant to La- DONALD M. RUSSELL, Resident Partner, bor Management — GEORGE W. BROOKS, Lybrand, Ross Bros. & Montgomery, Dir. of Research and Education, In- Detroit, Mich. ternational Brotherhood of Pulp, Sul- phur and Paper Mill Workers, Wash- SCRANTON, Pa. December 17 ington, D. C. Hotel Casey Labor's Vie w of Costs—WILLIAM ROCHESTER, N. Y. December 19 GOMBERG, Dir., Mgt., Engr. Dept., Seneca Hotel I.L.G.W.U., N. Y. C. Present Day Problems in Financing a Business— MERCER BRUGLER, Pres, and SEATTLE, Wash. December 19 Gen. Mgr., The Pfaudler Co., Roches- Transportation Club ter, N. Y. Organizing for Tax Savings —ERIC WILES, Partner, Griffith, Wiles & Co., ROCKFORD. Ill. December 11 Seattle, Wash. Hotel Lafayette What's New in Taxes —MARK E. RICH - SHREVEPORT, La. December 20 ARDSON, Res. Mgr., Washington Office, Caddo Hotel Lybrand, Ross Bros. & Montgomery, Accounting for Petroleum Refining In- Washington, D. C. dustry —JOHN W. OLD, Sr. Superv. Ac- countant, Refining Dept., Humble Oil SABINE December 17 & Refining Co., Houston, Texas. Edson Hotel Beaumont, Texas Renegotiation of Government Contracts SOUTH BEND, Ind. December 11 Under the 1951 and 1948 Renegotia- LaSalle Hotel tion Acts —J. F. NELSON, Mgr., Statisti- Current Economic Delusions —SAM A. cal Dept., Cities Service Co., N. Y. C. MARSH, Prof. of Acct'g., Washington Univ., St. Louis, Mo. SAGINAW VALLEY December 19 Zebaders Hotel Frankenmuth, Mich. SOUTHERN MAINE December 14 Cities: The Step - Children of Gov't — Elm Hotel Auburn CARL MILLER, City Mgr., City of Sagi- America's Responsibilities in Today's naw, Mich. Wo rld —CHARLES F. PHILLIPS, Pres., Bates College, Lewiston, Me. ST. LOUIS, MO. December 18 Sheraton Hotel SPRINGFIELD, Mass. December 19 Direct Cost Accounting vs. Conventional Hotel Sheraton Cott Accounting— Mediator: G. W. What the Banker Looks for in a Year FossIECK, Treas. and Controller, South. End Report—WALTER E. GODFREY, west Steel Supply Co., St. Louis, Mo. Vice Pres. & Cashier, Springfield Nat'l. Bank, Springfield, Ohio. SAN ANTONIO, Texas December 18 Munger Hotel SYRACUSE, N. Y. December 13 Current Tax Changes —NEAL Y. R. Syracuse Hotel SHEFFIELD, C.P.A., Eaton & Huddle, The FBI Today —PETER G. ROTH, San Antonio, Texas. F.B.I.

DECEMBER, 1 9 5 1 5 2 1 TOLEDO, Ohio December it WATERLOO, Iowa December 18 Secor Hotel Black's Tea Room "But Figures Do Lie"—RALPH L. LEE, The Use of Modern Business Equip- Public Relations Dept., G.M. Corp., ment—HAROLD E. PIM, Special Repr., Detroit, Mich. I.B.M. Corp., N. Y. C. TRI•CITIES December 18 WICHITA, Kansas December 11 Blackhawk Hotel Davenport, Iowa Broadview Hotel Highlights of the 1951 Income Tax Law New Developments in Federal Income — WALTER F. KAUTZ, Dir., Tax Dept., Taxes for Individual Corporations — Deere & Co., Moline, Ill. JAMES D. DYE, Partner, Dever -Dye- TULSA, Okla. December 19 Mustard & Belin, & Hugh C. Braly, Mayo Hotel Partner, Bonicamp, Koelling & Smith, This Is Our Problem —L. G. ECKLE, Wichita, Kansas. Repres., Employee Information Dept., WILLIAMSPORT. Pa. December 10 Public Service Co. of Okla., Tulsa, Okla. Republican Club TWIN CITIES December b Wh at Do We Expect, Facts or Figures? Covered Wagon Minneapolis, Minn. — HARVEY A. ANDRUSS, Pres., Blooms- "Getting the Most for Your Audit Dol- burg State Teachers College, Blooms - lar"—JOHN R. COWAN, Partner, Peat, burgh, Pa. Marwick, Mitchell & Co., Chicago, Ill. WORCESTER, Mass. December 20 WABASH VALLEY December 18 Putnam & Thurston's Restaurant Terre Haute House Terra Haute, Ind. Your Federal Income Taxes —WILLIAM The Power to Tax —EDWARD K. W. JOHNSTON, Partner, Scovell, Well- STRACHAN, Partner, Peat, Marwick, Mit- ington & Co., Springfield, Mass. chell & Co., Indianapolis, Ind. YORK, Pa. December 12 WASHINGTON, D. C. December 19 Hotel Yorktown Willard Hotel Accounting Information, Please: Panel "The Accountants Contribution To Pol- Discussion— Moderator: D. D. BAR - icy Decision— WILLIAM B. MCCLOS- BOR, Secty. and Treas., York - Shipley, KEY, Controller, The Davison Chemical Inc., York, Pa. Corp., Baltimore, Md. YOUNGSTOWN, Ohio December 12 WATERBURY. Conn. December 11 Tippecanoe Country Club Hotel Elton Our Defense Economy —A. C. FARMER, Collectibility of Insurance —PERCY D. Ass't. to the Div. Mgr., Transformer BETTERLEY, Betterley Assoc., Worcester, Div., Westinghouse Electric Corp., Mass. Sharon, Pa.

WE REMEMBER...

Charles E. Niehaus, 43, LOS ANGELES, Office Office Manager, Androscoggin Division, Manager, Johns Mansville Products Corp. Bates Manufacturing Co. Harley W. Tinkler, 67, GRAND RAPIDS, Mich- Harold J. Bash, 59, TOLEDO, Assistant Sec - igan Lithographing Co. retary, Toledo Edison Co. Vincent J. Valletta, 59, WORCESTER, General Duncan Rice, 63, KALAMAZOO, Resident Part - Manager, F. A. Whitney Carriage Co. ner, Lawrence Scudder & Co. Thomas W. Scruggs, 55, BIRMINGHAM, Herbert E. Nowell, 67, SAN FRANCISCO, President and Treasurer, Roberts & Son, Partner, Robinson, Nowell & Co. Inc. Benjamin R. Lang, 35, PROVIDENCE, Pro - W. Gilbert Lyman, 46, HARTFORD, Office fessor of Accounting, Bryant College. Manager, Putnam & Co. Arthur J. Sherriek, 38, Spokane, Wash. Elmer L. Johnston, 52, SANGAMON VALLEY, G. E. Chabot, 50, Office Manager and Ac- Associated with Sangamo Electric Co. countant, Iberville Fittings, Ltd., Iberville, John W. Hackett, 62, SOUTHERN MAINE, Quebec, Canada.

5 2 2 N.A.C.A. BULLETIN LITERATURE NOTES (con't from page 516) closely to the point that "Depreciation calcu- The Subject of Safety lations affect . . , national income accounts Some Notes on Insurance used in analysis of problems of policy (and) Leo Rosenblum, The New York Certified . . . may . . . affect general economic activity Public Accountant, October 1931 if the amount of reported profit influences The useful bibliography to Mr. Rosenblum's directly or indirectly the total amounts avail- article is given space equal to that occupied able for consumption by individuals." Among by the paper, itself The references are divided conclusions is the statement that, "Proposed between texts and periodical and pamphlet methods which would base the depreciation material and contain listings under such head- charge on replacement cost or purchasing ings (as to texts) as, "Adjustments," "Casu- power indexes would . . . increase the eco- alty." "Fire," "Inland Marine," "Life" and nomic significance of accounting depreciation." (as to periodicals and pamphlets) "Auditing," "Loss Claims" and "Special Types of Cover- Collateral Inquiry age". The paper proper points up the ac- The Mind of the Mis -Doer countant's need for knowledge of insurance. Why Do Trusted Persons Commit Fraud? Donald R. Cressey, Journal of Accountancy, November, 1931 Not Mirrors but Method In an attempt to reach more valid conclusions Accounting Costs Down— Efficiency as to the before -the -act state of mind of de- Up faulters, the author of this article "contacted Donald A. Tesch, Office Executive, October 1931 all trust violators in the Illinois State Peni- tentiary at Joliet." Forthcoming are a num- An old objective, ever new in its importance, ber of relevations of likely significance, among draws attention in this succinctly - titled article them the disclosure that a "nonsharable" situa- which details the author's experiences in se- tion (in the minds of the individual) de- curing smooth office operations at lowered veloped in each case prior to wrong - doing. cost.

ADDRESSES OF PUBLISHERS AND PERIODICALS

ACCOUNTING REVIEW, THE, c/o Charles Gaa, David Kinley Hall, University of Illinois, Urbana, Ill. Single Copy $1.50. COLUMBIA UNIVERSITY PRESS, 2960 Broadway, New York 27, N.Y. CONTROLLER, THE, i E. 42nd St., New York 17, N.Y. Single copy 500. COUVILLON, N. O., Printing Standards Department, Esso Standard Oil Co., Baton Rouge, La. DUNN'S REVIEW, 99 Church St., New York 8, N.Y. Single copy 350. JOURNAL OF ACCOUNTANCY, THE, 270 Madison Ave., New York 16, N.Y. Single copy 600. NEW YORK CERTIFIED PUBLIC ACCOUNTANT, THE, 677 Fifth Ave., New York 22, N.Y. Single copy 500. OFFICE EXECUTIVE, THE, 132 West Chelten Ave., Philadelphia 44, Pa. Single copy 500. PRENTICE -HALL, INC., 70 Fifth Ave., New York 11, N.Y. RONALD PRESS CO., THE, 15 E. 26th St., New York 10, N.Y.

DECEMBER, 1951 523 / S O N O l