Notable 19Th Century American Accountants That Could Be Considered for the Accounting Hall-Of-Fame

Accounting Historians Notebook

Volume 26 Number 2 October 2003 Article 3

October 2003

Notable 19th century American accountants that could be considered for the Accounting Hall-of-Fame

George C. Romeo

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Notable 19th Century American Accountants That Could be Considered for the Accounting Hall-of-Fame by George Romeo, Rowan University In America, the 19th century advancement of accounting marked the beginning of substantial since the beginning of the 20th economic changes (development of century the vast railroad system, industriali- [http://www.cob.ohio‑state.edu/ zation, and unsatiated demand for ~acctmis/hof/intro.html] capital), providing an environment The Accounting Hall of Fame has conducive to the establishment of a recently started an old‑timers’ com- new profession, public accoun- mittee to allow 19th century ac- tancy. There were many accounting countants access to the hall. When pioneers in the United States who determining who should be allowed helped the accounting profession in, the criteria is as follows: develop during this transitional pe- Evidence of such service in- riod. Many of the 19th century cludes contributions to account- American accountants are not as ing research and literature, sig- well known as their 20th century nificant service to professional counterparts, and only two account- accounting organizations, wide ants who worked primarily in the recognition as an authority in 19th century are currently in the some field of accounting, ad- Hall of Fame; Charles E. Sprague vancement of accounting educa- and Charles Haskins. Until re- tion, and public service. cently, there was a stipulation that [http://www.cob.ohio-state.edu/ prevented 19th century accountants ~acctmis/hof/intro.html] from entering the Accounting Hall of Fame; that is, a person must have The goal of this paper is to include brief histories of prominent contributed to the accounting field th since the beginning of the 20th cen- 19 century accountants who meet tury as noted by the following these criteria and are now eligible quote from the Accounting Hall of to be elected to the Accounting Hall Fame web age: of Fame. The accountants will be separated into five groups: authors, The Accounting Hall of Fame editors, educators, leaders, and was established at The Ohio practitioners. With the profession State University in 1950 for the emerging from 1880’s New York purpose of honoring accountants City and with the two major ac- who have made or are making counting organizations housed significant contributions to the

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there, it is not surprising that the Chicago [1886, p. 19‑20]. The next last twenty years of the century was three articles by Metcalfe that were dominated by editors, practitioners, published in The Office were based and leaders from New York. on a lecture delivered before the Accounting Authors Institute of Accounts (IA) in New York on June 15th, 1886 [Metcalfe, Thomas Jones is considered to be 1886, p. 30‑32, 48‑50, and 64‑66]. the first modern American account- This lecture and the related articles ing text author. Because of this fact, helped to bring members of the IA he very easily could have been in- to a higher technical level in cost cluded with the educators. How- accounting, making various papers ever, his greatest contribution to by IA members, such as Hardcastle, accountancy was his being first to Kittredge, and Child, in accounting insist that the financial statements journals in the 1890’s possible. were the main purpose of the ac- Another notable accounting au- counting process (proprietary ac- thor was Joseph Hardcastle, a regu- counting) rather than the bookkeep- lar contributor to various early jour- ing aspects of journalizing and the nals about accounting in the United keeping of the ledgers. His writings States, who became one of the fore- and teachings marked the begin- most authorities on the theory of nings of the modern period of re- accounting during the 19th and early porting [Previts and Merino, 1998, 20th centuries. Some of his writings p. 78 and 130]. on leases, bonds, and depreciation Captain Henry Metcalfe, an are still applicable today. Hardcas- American Army ordinance officer, tle’s published works, in addition to probably wrote the first modern numerous journal articles, included book on cost accounting: The Cost a book, Accounts of Executors and of Manufactures and the Admini- Testamentary Trustees: Lectures stration of Workshop, 1885 Before the New York University [Chatfield, Michael 1996, pp. 415‑- School of Commerce, Accounts and 416]. A summary of his book in Finance. A year before he died, The Office, describes the high re- New York University (where he gard in which his book was held at was Principles and Practice of Ac- the time: “This volume, which in counts Professor) conferred the many respects is one of the most honorary degree of Master of Let- important additions to the literature ters upon him and made him an of bookkeeping and business man- honorary alumnus [“Joseph Hard- agement which has been published castle,” 1906, p. 53]. in a long time,...” [1886, p. 10‑11]. Other accounting authors of the An article Metcalfe wrote for The 19th century include C.C. Marsh, Office was an abstract of his paper E.G. Folsom, and John Caldwell that was read before the American (Continued on page 6) Society of Mechanical Engineers in

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(Continued from page 5) ers. He showed that the knowledge Colt [Previts and Merino, 1998, p. and skills required to become a 76]. bookkeeper could be reduced to a Accounting Educators system and, thus, taught in a classroom environment using facsimile There is no doubt that many au- business papers and documents as thors, lecturers, and school owners an aid to recording transactions in who taught bookkeeping offered the classroom. Most importantly, he their services to many business provided working-class individuals houses long before the 1880s when an option besides the apprentice- the public accounting profession ship method developed in England. really got its start in America. Bennett’s lectures were of a type These “school men” truly may be that would be the forerunner of said to be the pioneers of public those heard in the business colleges accounting in this country [Ruth S. that would emerge in the 19th cen- Leonard, 1940]. tury Previts & Merino, 1998]. In James Arlington Bennett was fact, Bennett would establish the probably the first educator to start a framework for educating bookkeep- successful bookkeeping or account- ers in the U.S. that would differen- ing school in the United States tiate it from the English method of [Memo in Webster Archives] and training. played a leading part in the early Silas Sadler Packard was a lead- popularizing of the idea of specific ing business educator and head of training for business pursuits the Packard Business College, [Haynes and Jackson 1935, p. 17]. which he established in 1858 as Bennett's school was the forerunner part of the Bryant and Stratton sys- of the business colleges that edu- tem and administered until his cated the working‑class students death. By 1897, the school had and accountants of the 19th and turned out approximately fifteen early 20th centuries. Before the es- thousand graduates. The success of tablishment of Bennett’s school, his school had an international in- bookkeepers were trained by ap- fluence; many business schools, prenticeship; by channeling book- particularly those at Paris and keepers through a specialized Rouen in France, were founded on course, he raised the level of exper- Packard’s model [The Bookkeeper, tise for bookkeepers. Thus, the for- 1898, p. 47]. He was one of the mal classroom training replaced the founders of the Business Educators' slow and uncertain method of learn- Association of America as well as ing by apprenticeship. its first president. In 1896, he as- Bennett’s contributions to educa- sumed the first presidency of the tion in accounting are significant: Commercial Teachers’ Federation he provided an affordable means of [Obituary, 1898, p. 667]. training for prospective bookkeep-

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Packard’s publications included President William H. Taft, Presi- the Bryant & Stratton series of dent Theodore Roosevelt, Senator bookkeeping textbooks and a Joseph T. Robinson, Vice‑- monthly magazine, the American President Charles Curtis, and Sena- Merchant. From 1868 to 1870, he tor Alben W. Barkely. Peirce re- edited and published Packard’s ceived an honorary degree of Ph.D. Monthly [History of the Greater from Dickinson College in recogni- New York, Biographical, pp. 413- tion of his work in education. Addi- 415]. Packard wrote various other tionally, he was president of the books on accounting and bookkeep- Bookkeeper's Beneficial Associa- ing and had numerous articles pub- tion of Philadelphia [Webster Ar- lished in such journals as The chives]. Book‑Keeper, American Counting George Soule was president of Room, The Office, Business, and the Associated Accountants of New The Bookkeeper (Detroit). He was Orleans ["Accountants’ Associa- an active member of the IA begin- tions, Associated Accountants of ning in 1883 and served as its presi- New Orleans," 1898, p. 512]. He dent in 1895 and 1896. He also pre- was a member of the national IA sented at least four lectures on top- and head of a successful business ics such as the classification of ac- school [Business, December 1895, counts, education, and moral duties "Brief Mention," p.433]. Soule was [Romeo and Kyj, 1998, p. 51‑53]. a prolific writer who published In 1865, Thomas May Peirce or- various books on accounting and ganized the Peirce Business Col- mathematics including Soule's lege for the purpose of preparing Manual on Auditing and Soule's young men for a business career. New Science and Practice of Ac- Peirce authored many of the texts counts as well as numerous articles used at his business college: Text in journals such as The Book‑- Business Problems, Peirce School Keeper, The Office, Business, Ac- Manual of Bookkeeping, Peirce countics, The Bookkeeper (Detroit) College Writing Slips, and Peirce and The Accountant. In recognition School Manual of Business Form. of his many accomplishments as a Five hundred and fifty students en- writer and educator, Tulane Univer- rolled in the school the first year. If sity of Louisiana conferred the hon- the recognition of a school is indi- orary degree of doctor of laws upon cated by the commencement speak- Soule [Baladouni, 1996, p. 543]. ers, this school was quite prestig- Other business school leaders or ious. Some of the speakers in- educators included Benjamin cluded: Andrew Carnegie, Presi- Franklin Foster, R. M. Bartlett, dent Benjamin Harrison, President George Comer, Peter Duff, E. K. Grover Cleveland, William Losier, Thomas Jones, H.B. Bryant, Jennings Bryan, John Wanemaker, (Continued on page 8)

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(Continued from page 7) the United States during its infancy; and H. D. Stratton [Previts and Me- however, few among his contempo- rino, 1998, p. 75]. There was also raries can match Kittredge’s contri- Henry Cook, who was Chairman of butions as an editor, author, teacher, the Charter Committee for the Col- innovator, editor, practitioner, or- lege of Accounts for the AAPA in ganizer, and CPA examiner 1892 and author of the State Soci- [Romeo and Kyj, 2000, p. 117 ]. ety Resolution for the NYU School Throughout his fourteen years as of Commerce, Accounting and Fi- an editor, Kittredge’s journals in- nance in 1899 [Webster, 1954, p. cluded numerous educational arti- 342]. cles on the science of accounts. Accounting Editors McMillian (1998) acknowledged Kittredge to be one of the leading A great editor can greatly influ- forces advocating the science of ence the field in which they work. accounts in the U.S. and documents Selden R. Hopkins, whose back- evidence on Kittredge’s view of ground held twenty years of experi- accounting as a real science in arti- ence in accounting, was the pioneer cles written in 1896 [pp. 25‑28]. accountancy editor in the United Other accounting editors include States. For at least five years, he Elmer Henry Beach, editor of The was the first and only editor of an Bookkeeper of Detroit; Henry Gold- accounting journal. In that capacity, man, editor of Office Men’s Record; with his little sixteen page paper, he Alois Gonzaga Thienel, editor of became the father of the first pro- The N. Y. Accountants and Book- fessional association of accountants keepers Journal; and Seymour in the United States and dissemi- Walton, editor of The Auditor nated the science of accounting [Webster, 1954, pp 110‑118]. throughout the United States. Hop- kins was an educator and, therefore, Accounting Leaders brought high ideals and a profes- When the New York Board of sionalism that had not previously CPA Examiners issued waivers for existed in accounting in the U. S. to the first group of CPAs alphabeti- the journals he edited. cally, Frank Broaker was issued Anson O. Kittredge was one of CPA Number 1. Broaker was also the main contributors to the ad- secretary, vice‑president, and presi- vance of the accounting profession dent of the AAPA in the 1890's. in the second half of the 19th cen- Additionally, he was one of the or- tury. Kittredge published several ganizers of the N.Y. School of Ac- articles on accounting theory and counts in 1892 and first secretary of served as the editor of various jour- the New York Board of CPA Ex- nals over his lifetime. There were aminers. While President, he pre- many individuals who helped shape sented a lecture on cost and factory the early accounting profession in accounts to the AAPA [The Finan-

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cial Record, July 14, 1897, p. 3]. vice president in 1899. MacRae He co-authored the American Ac- succeeded Haskins as president countants Manual in 1897 (the first upon Haskins’ death. In 1903, he CPA review book) as well as Tech- became the president of the Federa- nique of Accountics in 1904. He tion of Society of Public Account- belonged to the N.Y. State Society ant in the U.S. but resigned when of CPAs and the National Society the NYSSCPA withdrew of CPAs [Webster, 1954, p. 336]. [Committee on History, 1953, p. As if that were not enough, Broaker 107]. was also an important player in the Henry Harney served at least nine passage of the first CPA Law. terms as the president of the IA and John Loomis, who was active in the secretary of the National Insti- public accounting for many years, tute of Accounts. He was a member was a member of the IA serving as of its committee, which prepared a member of the Executive council the New York CPA Law; in fact, he from 1902 to 1904 and vice presi- may have prepared the first draft of dent of the NYSSCPA from 1898‑- the law. He received certificate No. 1899. He was president of the 18 and became a charter member of American Association of Public the NYSSCPAs [Committee on Accountants 1903‑1906 and a History, p. 106]. member of the New York Board of Before becoming an Accountant, CPA Examiners from 1898 until his Ferdinand William Lafrentz had a resignation due to the Perley Morse fascinating career serving as a controversy in 1904 [NYSSCPA member of the Wyoming legisla- Ten‑Year Book, p. 59]. ture and authoring a book of poems The first president of the Ameri- and a book on his childhood days can Association of Public Account- [Previts and Merino, 1998, p. 147]. ants was James Yalden. Yalden was Lafrentz served in various execu- a member of the Charter Committee tive positions in the AAPA and was for the College of Accounts, which its president from 1901 to 1903. He was established in 1894. He was a was on of the founding members of Trustee and Guarantor, as well as a the NYSSCPA and instrumental in teacher of governmental accounts, the passage of the New York CPA for the school. He became a CPA of Law. He served as a member of the New York (No. 138) and a partner New York State Board of CPA Ex- with various public accounting aminers for the years 1904 and firms [Webster, 1954, p. 387]. 1905 as well as from 1917 to 1925. Farquhar J. MacRae received He was also on the first faculty of CPA certificate no. 23 in New the NYU School of Commerce, York. He was an officer in the IA, Accounting, and Finance as an in- and Incorporator of the NYSSCPAs structor in Auditing [Committee on as a charter member and elected as (Continued on page 10)

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(Continued from page 9) Charles Dutton, John Hourigan, History, 1961, p. 212]. The Board Thomas B Conant, Edward C. of Directors of the New York State Cockey; one of the leaders of the Society of Certified Public Ac- CPA movement, Francis Gottsber- countants presented a testimonial to ger; leaders who spanned both cen- Lafrentz in 1947 as part of its 50th turies, such as Frederick Manvel, anniversary: John Robert Sparrow, and Arthur We express our sincere and Teele; as well as an early leader of heartfelt appreciation which he the California movement, Alfred has served for over a half cen- George Platt. tury...fully realizing...that the Accounting Practitioners history of our profession and of Arthur Young, whose law career our Society for this first half was cut short because a hearing century would not be complete defect, started the firm of Arthur without this recognition of his Young & Company. He served on great contribution to their ad- many committees of the Illinois vancement and development. Society and was its president from [Committee on History, p. 211 ] 1912‑13 [Higgins, 1968, p. 271. A Ferdinand William Lafrentz died in couple of other impressive practi- 1954 at the age of 95. tioners are William F. Rodgers of Richard Fowler Stevens, who was Baltimore and John Heins of Phila- a brigadier‑general of the New Jer- delphia, as well as James T. Anyon sey militia during the Civil War, and William H. Veysey of New served as president of the AAPA York (who were mentioned above and the first president of the New as leaders in the development of the Jersey Society for seven years. AAPA). While president of the AAPA, Ste- vens was a Trustee and on the Conclusion Committee on Curriculum and There were many great account- Teacher Transportation in the N.Y. ants in the 19th century who de- School of Accounts. He was also serve the recognition and status af- one of the initiators of the CPA forded by election to the Account- laws of both New York (member of ing Hall of Fame. Since there were the Committee of 14 for the CPA so many accounting pioneers who Law) and New Jersey [Webster, helped make ease the transition of 1954, p. 278]. the accounting profession from A short list of other leaders of bookkeepers to professional ac- accounting in the 19th century in- countants, it would be very easy to clude the following: early founders leave out some names. This is just of the AAPA, including James T. one attempt to recognize the names Anyon and William H. Veysey; of some of those men who took active members of the IA, including accounting into the 20th century

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and deserve such recognition. York: Garland Publishing, Inc.: References 101‑109. Baladouni, Vahe (1996), “Soule, “Joseph Hardcastle,” (1906), The George (1834‑1926).” In The Business World, Vol XXVI, July History of Accounting--An Inter- 15: 53 national Encyclopedia, edited by Haynes, Benjamin R. and Harry P. Chatfield, Michael, and Richard Jackson (1935) A History of Busi- Vangermeersch, New York: Gar- ness Education in the United land Publishing, Inc.: 542‑543. States New York: South‑Western The Bookkeeper (Detroit) (1898), Publishing Co. Vol. 11, No. 5, November: 47 Higgins, Thomas (1968) “Arthur Business (1898), “Accountants' As- Young (1863‑1948).” The CPA sociations, Associated Account- Journal.: Reprinted in New ants of New Orleans,” August: Works in Accounting History, 512. The New York State Society of Business (1895), “Brief Mention,” Certified Public Accounts (1995) December: 433. New York: Garland Publishing, Business (1898) “Obituary,” Vol. Inc.: 269‑272. XVIII, No. 11, November: 667. Leonard, Ruth S. (1940) Letter to Chatfield, Michael (1996), Norman Webster dated August “Metcalfe, Henry (1847‑1927).” 28, Webster Archives, AICPA, In The History of Accounting--An Jersey City, NJ. International Encyclopedia, ed. McMillan, Keith P., S.J. (1998), Chatfield, Michael, and Richard “The Science of Accounts: Book- Vangermeersch, New York: Gar- keeping Rooted in the Ideal of land Publishing, Inc.: 415‑416. Science,” Accounting Historians Committee on History (1961) Journal, Vol. 25, No. 2: 1‑34. “Ferdinand William Lafrentz.” Metcalfe, Henry (1886) “The Me- The CPA Journal. April: Re- chanical Consolidation of Ac- printed in New Works in Ac- counts,” The Office, Vol. I. No. 2, counting History, The New York 3, and 4, July, August, and Sep- State Society of Certified Public tember: 30‑32, 48‑50, and 64‑66 Accounts (1995) New York: Gar- New York State Society of Certified land Publishing, Inc.: 211‑213. Public Accountants Ten‑Year Committee on History (1953) “The Book, NYSSCPA (1939), New Incorporators of the New York York, N.Y. State Society of Certified public The Office (1886) “Cost of Manu- Accountants,” The CPA Journal. factures,” Vol. I, No. 1, June: March: Reprinted in New Works 10‑11. in Accounting History, The New The Office (1886) “The Shop‑- York State Society of Certified Order System of Accounts,” Vol. Public Accounts (1995) New (Continued on page 12)

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(Continued from page 11) 1, No. 2, July: 19‑20. Previts, Gary John, and Barbara Dubois Merino (1998), A History of Ac- countancy in the United States. Columbus: Ohio State University Press. Romeo, George and Larissa Kyj (2000) “Anson O. Kittredge: Early Ac- counting Pioneer” The Accounting Historians Journal, Vol. 27, No. 2: 117-143. Romeo, George and Larissa Kyj (1998) “The Forgotten Accounting Associa- tion: The Institute of Accounts” The Accounting Historians Journal, Vol. 25, No. 1: 29‑55. Webster, N. E. (1954). The American Association of Public Accountants 1886‑1906 (New York: Arno Press), reprinted 1978. Webster Archives, AICPA Library, Jersey City, New Jersey.

Minutes of Academy Meetings

Meeting of Officers, Trustee and seconded the motion and the min- Key Members utes were approved unanimously. Saturday, March 8, 2003 Treasurer’s Report Hyatt Regency Hotel John Rigsby distributed the Treas- urer’s Report that included the Au- Houston, TX dited Financial Statements and Present: Joann Cross, Dale Flesher, other financial reports for 2002. He Finley Graves, Sarah Holmes, Alan discussed some of the notes at- Mayper, Barbara Merino, Gary Pre- tached to the statement for the vits, and John Rigsby month of December 2002. One note Call to Order reported that the Endowment Fund CD was increased by $2,000 when Sarah Holmes, President of the it matured in April 2002 so that it Academy, called the meeting to would be a close match to the bal- order at 12:30 pm and distributed ances in the endowment equity ac- the agenda. counts. John discussed the note that Minutes showed a prior period adjustment Sarah Holmes distributed the min- to 2001 revenues of $4595 to re- utes of the August 14, 2002 meet- flect the amount of prepayment of ing in San Antonio of Officers, 2002 dues. He also noted accrual of Trustees and Committee Chairper- a contingency in December 2002 sons. Finley Graves moved that the of $2,000 for shipping of books minutes be approved, Dale Flesher (Continued on page 13)

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