N SSOC Atiuf He Tecl}Nical Side of ACOF --- -- 'O M T -Cur-Erifs- 109 L R Ir%Y R a U R a O T E S 113

N.AOCOAG BULLETIN o,� September s(�°�p prA�� Two Sections 1951 � ;� IIL' Section 2 0

In the News

A Message from President Papenfoth 99 Four Regional Conferences Planned for '51-52 101 More than 200 Members in Armed Forces 103 Board Votes Research, Education Survey 105 Called to the Colors 104 In the Public Eye 106 Congratulations To 108

N SSOC ATIUf he Tecl}nical Side OF ACOF --- -- 'O m t -Cur-erifs- 109 L R Ir%y r A u r A o t e s 113

Stevenson Trophy Standings

112 N.A.C.A. BULLETIN Volume XXXIII, Numbcr 0 Published by NATIONAL ASSOCIATION OF COST ACCOUNTANTS SOS PARK AVE., NEW YORK 22, N. Y.

NATIONAL OFFICERS

President 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 A Message from President Papenfoth

of broad financial and accounting objectives. During this period, and as we look ahead, the industrial accountant is faced with meeting the questions and problems arising from the necessary adjustments due to a continued defense economy, federal controls and inflation. This presents an opportunity to us, and by recognizing the responsibilities in relation to these matters the industrial accountant is in a position to serve and be a part of management in the control of expenses, profits and cost reduction. With increasing government expendi- tures, necessary for defense and war pur- Herman A. Papenfath poses, and with the resultant increase in federal taxes, there is need for greater HE YEAR AHEAD is another challeng- efficiency, cost control and cost reduction, T ing one for the industrial accountant which become of paramount importance in planning adequately to serve manage- as inflation continues its upward trend. ment, industry and the country during a By application of everyday practices of period when a broad outlook and maxi- cost predetermination and control, the mum flexibility are essential in order to cost accountant can contribute greatly to- meet the ever - changing conditions in our ward minimizing some of the unfavorable economy. influences. By this time there should be little room Inflation is an insidious enemy of our for question regarding the position of the economy and can be almost as successful industrial accountant in business—his as war itself in wrecking our American place in management —and his responsi- system and institutions. Increased produc- ility for service to the operating divi- tion and improved efficiency can serve sions of the business. An adequate or- best in offsetting the undermining effects ganization plan and chart establishes the of inflation. Under federal controls now basis for understanding these relation- in effect an effort is being made to hold ships, and careful financial planning pro- the line on costs, prices and profits. It is vides the method for the accomplishment only by the wide and consistent applica-

SEPTEMBER, 1951 99 tion of the principles of cost and price tors at the chapter level, which forms the control to all parts of all industry that the backbone of the organization. forces of inflation can be held in line or The well- organized headquarters staff, directed in a manner to delay or mini- which has grown to keep pace with the mize its effects. Here again the account- Association's needs, could do little with- ant can serve management and industry out the collective efforts of all chapters; because of his intimate knowledge of but by the administration and coordina- costs and price relationships. tion through national headquarters, the One of the greatest challenges before N. A. C. A. is able to function smoothly us is the full and efficient utilization of for the over -all benefit of the entire mem- facilities, manpower, and materials in or- bership. der to obtain maximum production at low It is a continuing responsibility of your cost and with a minimum of inventory in- National Officers and Board of Directors vestment. Accomplishment of these ob- to be constantly aware of the value of jectives will produce maximum results supplying information on matters of cur- with the available material and labor sup- rent interest, and through educational ply at a time when production demands programs to offer opportunity for im- are greatest, in order to meet the com- provement and advancement in knowl- bined requirements for government de- edge to its members. fense needs and consumer requirements. An activity which has always been The N. A. C. A., through its member- given a great deal of attention is the re- ship and its services has, from its incep- search program, which will be given con- tion, kept pace with current conditions tinuing emphasis during this year. and problems to meet industry's need in A Special Projects Committee was ap- the financial and accounting field. As this pointed last year to investigate and rec- organization has grown, it has broadened ommend to the National Board activities its scope by the steady increase in the of a research and educational nature number of chapter.- throughout the coun- which might be undertaken to insure con- try, with a membership which should ex- tinuing and long -range benefits to the ceed 30,000 by the end of the year. membership in these areas. In this growth the N. A. C. A. has sac- During the year ahead the National rificed nothing in character and service Officers, and others who comprise the because of its size, but has given others Executive Committee, as well as the chai an opportunity to participate in all of the men of the various standing committees, advantages and benefits offered by N. A. will devote themselves to the direction of C. A. membership. This is made possible N. A. C. A. affairs, and by visitations to by the responsibility and opportunity for chapters and regional cost conferences initiative given to the officers and direc- (Continued on page 105) 100 N.A.C.A. BULLETIN Four Regional Conferences Planned for '51 -52 Later in the month Twin Cities Chapter will sponsor the Northwest Regional Cost Conference, to be held at the Radisson Hotel in Minneapolis, October 19 -20 (Friday and Saturday). Twelve chapters in sections of Minnesota, Wisconsin, Iowa, Illinois and Nebraska, will send their representatives to the meeting. Indianapolis Chapter will be host to eleven chapters from Indiana, Illinois,

Photo Providence Journal- Bulletin Ohio, Missouri and Kentucky at the first Air view of Providence spring conference, scheduled for the Clay- pool Hotel in Indianapolis, on April 4 A.C.A.'S REGIONAL COST CONFER- and 5. In addition to the foregoing, a N 1951 -52 ENCE program for gets fourth regional conference is being under way next month, with two con- planned for Atlanta, Ga., April 18 -19. ferences scheduled during October and Fourteen southern chapters will partici- two planned for next April. Program pate, representing the states of Georgia, themes are being geared this year for Alabama, North and South Carolina, consideration of all the major problems Tennessee, Virginia, Mississippi and Lou- facing the accountant in industry today, isiana. with special emphasis on his role in the current economy. A total of fifty-six (A listing of chapters participating in N.A.C.A. chapters are already scheduled the regional conference program may be to participate in the regional meetings, found on the back cover.) The Thirty- with upwards of 1,500 members expected third Annual International Cost Con- to attend. ference will be held at the Waldorf - The New England Regional Cost Con- Astoria, New York City, from June 15- ference is first on the schedule, to be held at the Sheraton - Biltmore Hotel, in Provi- 18. dence, R. I., October 12 -13 (Friday and Saturday). In addition to the sponsoring New England Program chapter, Providence, fourteen New Eng- The New England Regional Cost Con- land chapters, representing the states of ference will feature the following topics, Massachusetts, Connecticut, Maine and under the general theme of "The Indus- New Hampshire, will participate in the trial Accountant's Part in a Mobilization conclave. Economy:" SEPTEMBER. 1951 101 The Assignment of Costs to Govern- ment Contracts and Sub-Contracts E. E. MCCONNELL, Comptroller, Norton Company, Worcester, Mass. The Accounting Problems of Renegoti- ation LESLIE MILLS, PARTNER, Price, Water- house & Co. Minneapolis skyline seen from Loring Lake. Competitive Costs in New England Industry troller, Goodyear Tire & Rubber Co., ROYAL D. LITTLE, President, Textron, Akron, Ohio Inc., Providence, R. I. ACCOUNTING REQUIREMENTS The General Competitive Situation in New England FOR GOVERNMENT CONTRACTS ALFRED C. NEAL, First Vice President, Assignment of Costs to Government Federal Reserve Bank of Boston, Bos- Contracts ton, Mass. PAUL H. WERNICKE, Comptroller, Min- Production Cost Analysis neapolis- Honeywell Regulator Co., STANLEY Z. BRONNER, Assistant Treas- Minneapolis, Minn. urer, Bridgeport Brass Co., Bridgeport, Cost Problems Arising from Price Conn. Stabilization Distribution Cost Analysis J. S. GUSTAFSON, Manager, Special Serv- JOHN A. BECKETT, Assistant Professor, ices Department, Touche, Niven, Bailey Massachusetts Institute of Technology, & Smart, Chicago Cambridge, Mass. Renegotiation HAROLD W. SCOTT, Partner, Haskins & Northwest Program Sells, Detroit Keyed to the theme of "Cost Account- Accounting Requirements for Govern- ing in a Defense Economy," the North- ment Contracts — Discussion Panel west Regional Cost Conference will feature discussion of the following: The technical programs for the two spring conferences in Indianapolis and COST ANALYSIS FOR Atlanta, will place emphasis on current MANAGEMENT GUIDANCE topics similar to the above. Subject ma- Production terial will take cognizance of new devel- L WAYNE KELLER, Assistant Controller, opments taking place between now and Armstrong Cork Co., Lancaster, Pa. conference time. An altered economic Distribution picture, new government regulations, an JAMES E. CALDWELL, Assistant Comp- (Continued on page 107) 102 N.A.C.A. BULLETIN More Than 200 Members in Armed Forces

O R E T H A N 200 MEMBERS Of the As- form for requesting transfer to Military M sociation have been recalled to ac- Service classification may be obtained tive duty in the nation's armed services from the Secretary of the local chapter during the past year. Personal mention or by writing direct to National Head- had been made of all those answering the quarters. ) call, on the "Called to the Colors" page No dues will accumulate from that of this section of the Bulletin, as notifica- date to the date on which the member is tion came to the National office. discharged from active military duty. Any A review of our Military Service mem- unused portion of dues paid by the membership records shows members stationed ber at the time he enters military service at camps, bases, ports and air fields all will be carried forward until the time his over the U. S., on vessels in the Atlantic, military service terminates. Pacific and Mediterranean, scattered in Bulletin Service Continued occupation zones in Japan and Germany Bulletin and on the fighting fronts in Korea. As If the member desires that might be expected the Army took the service to him be continued, he is to lion's share of those called to duty, supply the Headquarters office with a thirty-eight per cent of the total. The permanent residence mailing address in Air Force came in second with twenty- the United States. Frequency of transfers nine per cent, the Navy next with twenty - of military personnel from one post or three per cent and the Marine Corps last station to another, makes it impractical to with a tidy ten per cent. maintain accurate mailing lists which will assure delivery of the Bulletin to members Inasmuch as the national office receives where they are stationed in military serv- notification of members going back into service almost every working day, it is ice. perhaps appropriate to restate herewith Association policy and procedure with respect to the Military Service membership classification. Whenever a member notifies the Head- quarters office that he is entering military service and requests that his membership be classified as a Military Service membership, the membership will be so classified effective on the first day of the PHILADELPHIA Chapter welcomes Its 1000th member. Howard R. Eddy presents membership card to neophyte Mae E. Dwyer, as Marion Kern and Earl month in which the request is made. (A L. Coz look on. SEPTEMBER, 1951 203 It ha s been su ggested to the chapters wa s an excellent mea ns of k eep ing the that they will want to keep their military cha pter inform ed a s to their whereabouts members on their ma iling lists for the and activities. A number ofchapters have pu rpose of send ing progra ms, news let- already established similar arrangements. ters, a nd other communications. T hese To all members entering the military will usually be sent by first -class ma il services of their country, the Association in order to assure that they will be for- extends sincere wishes tha t ea ch ma y re- warded in the event the member has been turn safely a nd quickly to his h o m e transferred to a nother post or station. a nd usual pursu its. It is wa rmly recog- During World W a r II, some chapters nized that the period of absence fr o m found it most helpful to designate an as- civil life is one of patriotic service on the sociate director whose particular responsi- part of this group of members. bility was to keep in touch with members in military service, throu gh special corre- Correction: Among the photo highlights of the annual conference depicted on page 1543 of last month's spondence with them and personal contact issue of the N.A.C.A. Bulletin was a shot of guests signing in at the "Milwaukee" Room. Our apolo- with their families. This thoughtful ges- gies to Northern Wisconsin Chapter in failing to note this joint venture of the two Wisconsin chapters, ture mea nt mu ch to those in service and as the "Wisconsin Room.

CALLED TO THE COLORS

Chicago's Paul D. Verdow, to the AIR FORCE, 14th Quartermaster Battalion, Fort Bragg, formerly Office Manager, Mercil Plating N. C. Equipment Co. Twin Cities' Anthony F. Jerome, to the AIR Dayton's Walter A. Buchanan, to the AIR FORCE, formerly Cost Accountant, Minne- FORCE, formerly Accountant, Oakwood sota Mining and Mfg. Co., St. Paul, Minn. Nash Sales. Now a Major with the Air Currently stationed at Wright- Patterson Materiel Command. . . . Harold C. Er- Air Force Base, Dayton, Ohio, as a Cap- skine, to the AIR FORCE, formerly with tain with the Comptrollers Division of Trout & Barstow, C.P.A.'s. . Jack the Air Materiel Command. Jenefsky, to the Air Force, formerly Sales Representative, Remington Rand, Inc.... Philadelphia's Winston Hargrave, to the AIR DeWitt W. Smith, to the AIR FORCE, FORCE, formerly Comptroller and Secre- formerly Payroll Statistical Clerk, Moraine tary, The Harris D. McKinney Organiza- Products Division, General Motors Corp. tion. Currently a 1st Lt. with Head- Currently a Major with the North East quarters Second Air Force, Barksdale Air Air Command. Force Base, Shreveport, La. Southern Maine's Robert A. Jordan, to the Newark's Bernard G. Bense, to the AIR FORCE, NAVY, formerly Junior Accountant with formerly with Irvington Varnish and In- Jordan & Jordan, Portland, Me. sulator Co., Irvington, N. J. Now a Major with the First Statistical Flight. Bridgeport's Carl R. Johnson, to the ARMY, formerly with John H. Venman, C.P.A. Springfield's Richard W. Michel, to the ARMY, Now stationed at Pine Camp, N. Y. formerly Accountant, Eastern States Farm- ers' Exchange, Inc., West Springfield, Elmira Area's William N. Bromfield, to the Mass. Now serving as a Private with the ARMY, formerly Salesman for the McBee Headquarters & Headquarters Detachment, Co. Now with the Army Engineers. 10 4 N.A.C.A. BULLETIN Board Votes Research, Education Survey

T ITS JUNE MEETING the National appropriated $10,000 from the income of A Board of Directors, acting on the the Permanent Fund for the 1950 -51 recommendation of the Committee on fiscal year to cover the cost of the project, Special Projects, approved a proposal for which is to get under way this fall. a survey of research and educational ac- The Committee on Special Projects tivities in the field of industrial account- was appointed by President McCloskey ing. Intended to provide the Committee during the past year. This Committee and National Board with the background was given the responsibility of reviewing information needed in considering future and recommending to the National Board projects, the study of the activities of of Directors projects which promote the other groups in the two fields of research educational, research, and related objec- and education will be useful also in pre- tives of the Association and which are venting duplicate efforts, obtaining sug- appropriate and desirable for the Nation- gestions for joint and supplementary al Board, in its discretion, to undertake projects, and determining the areas or and support from the resources of the topics in greatest need of study and de- Permanent Fund. The Committee is velopment. under the chairmanship of William E. The National Board of Directors has Perry of Scranton.

A MESSAGE FROM PRESIDENT PAPENFOTH (Continued from page 100) will endeavor to coordinate and keep the participation on the part of many and membership generally informed on the permit a discussion of those N. A. C. A. broad objectives of the Association. affairs in which chapter officers, directors Four regional conferences have been and the membership -at -large are inter- scheduled to afford a greater segment of ested. These conferences also give the the N. A. C. A. membership benefits sim- National Officers and Directors an oppor- ilar to those which are derived from at- tunity to meet with more members than tendance at a national conference. The would be possible by attempting visita- programs being arranged for these con- tions to cover each individual chapter. ferences will be timely and will give am- I am planning to attend all of these ple opportunity for consideration of regional conferences and expect to visit problems which are of immediate concern. many chapters during the year. It is im- As the organization has grown these practical to plan all of these visitations regional conferences have increased in for the entire year in advance, but I am importance in bringing the membership looking forward to meeting with as many of chapters within the region into closer of you as possible. contact. They afford an opportunity for H. A. PAPENFOTH

SEPTEMBER, 1951 105 I N ' T H E PUBLIC EYE

Lansing's Louis W. Edwards has been elected Rochester 's Robert H. Reeves and Frederick President of the Michigan Association of C. Morgan have been awarde d life me m- Certified Public Accountants, Central berships in the American Association of Chapter. Hospi tal Accountants. Syracuse's Vice President Bernard J. Whit- Long Isl and 's C. Herbert Lindewall has bee n bread has been named President of the appointe d a Direct or of the N e w Y o r k Syracuse Control of the Controller's In- State Society of Certified Public Account- stitute of America and Vice President of ants. the Tax Executives Institute. L. F. Spaulding was elected President of the Detroit's Sam MacArthur has been named latter group, and George Small named President of the Detroit Control of the Treasurer. Controller's Institute of America, Lester M. Elliott, elected Vice President and Birmingham's Past President Harris Saunders Arnold W. Hartig, named Secretary . . . was recently elected Vice President of the Harold H. Gilbert was elected President local chapter of the Society for the Ad- of the Michigan Association of Certified vancement of Management. Public Accountants, Willard E. Slater, chosen Vice President and Donald J. Tulsa's Donald W. Brown has been named Bevis named Treasurer. President of the local chapter of the Okla- homa Society of Certified Public Account- Los Angeles' Leonard Jacobson and Martin ants. A. Samuelson recently served on a panel at the Southern California Tax Confer- San Francisco's Howard Spaulding has been ence of the National Association of Home elected Treasurer of the Oakland East Bay Builders. Chapter of the National Office Manage- ment Association. Boston's Frederick R. Patten has been elected President of the Boston Control of the Williamsport's Fred Lutcher was recently Controller's Institute of America . .. Pa st elected to the Board of Governors of the President Carl E. Thoresen was named Susquehanna Valley Conference of the Vice President of the Carton Credit National Association of Bank Auditors Bureau. and Comptrollers. Newark's Director of Program, William Philadelphia's Past President George A. Hewitt has been elected President of the Langenherg will serve as Chairman of a Pennsylvania Institute of Certified Public Production Seminar on "Budgetary Con- trol of Production Costs," to be held by Accountants, David P. Fry, named Vice President and Frank Gray, chosen Treas- the American Management Association urer . Marion E. Kern has been this month. elected a National Director of the Ameri- Paterson's Vice President Harold E. Wester - can Society of Women Accountants . hoff has been elected Administrative Sec- Vert Elliott recently spoke on the subject retary of the International Society of "The Controller as Integrator and In- Christian Endeavor. terpreter of Figures," at the University of Pennsylvania in connection with a con- South Bend's Past President Charles D. Hoyt, ference on coordination and polity forma- Jr. has been appointed to the Advisory tion given for top executives from all Committee for the Screw Machine Prod- parts of the country. ucts Industry, Office of Price Administra- tion, Washington. Columbus' Charles A. Kuntz has been elected President of the Columbus Control of the York's Arthur W. Spons!er has been reelected Controller's Institute of America President of the Central Pennsylvania Woodrow W. Slatzer was selected Presi- Credit Group of Plumbing and Heating dent of the local chapter of the Public Wholesalers. Accountants Society of Ohio.

1 0 6 N.A.C.A. BULLETIN

� _ FOUR REGIONAL CONFERENCES PLANNED (Continued from page 102)

intensified national defense program, obligations in the industrial sphere. The changing material supply problems and planning, coordination and control nec- many other occurrences will have their essary in industry today, demand greater effects on these programs. flexibility in our approach to the account- The present state of flux of the nation's ing problems of the day. Many of the economic picture imposes greater respon- tools needed for the job at hand will be sibilities upon each of us. The unusual on tap at the Association's regional cost demands being made on industrial ac- conferences. Prepare yourself by plan- countants require us to learn new meth- ning now to attend the conference nearest ods and techniques in order to meet our you!

WE REMEMBER...

William Aitken, 52, Past President of ST. Louis C. Slay, 67, DETROIT, Certified Public Louis Chapter, Comptroller and Treas- Accountant. urer, Falstaff Brewing Corp. Seymour R. Berkey, 61, Past President of Constance D. Wright, 31, SPRINGFIELD, Fred GRAND RAPIDS CHAPTER, Resident Part- A. Wright & Co. ner, Lawrence Scudder & Co. David E. Lloyd, 36, YOUNGSTOWN, Cold Arthur D. Neil, 52, KALAMAZOO, American Metal Products Co. National Bank.

Frederick H. Hurdman, 69, NEW YORK, David Wiegel, 44, CHICAGO, Acme Steel Co. Senior Partner, Hurdman & Cranstoun. E. D. Mosely, 52, MEMPHIS, Pidgeon - Thomas Lawrence A. Hegenbarth, 44, CHICAGO, Iron Co. Fransteel Metallurgical Corp., Waukegan, Ill. R. Lola Douglas, 40, Washington. Forrest T. Dalton, 43, HOUSTON, Lybrand Ross Bros. & Montgomery. W. Leslie Foulds, 55, MOHAWK VALLEY, Rome Manufacturing Division. Robert Grainger, 61, GRAND RAPIDS, Resi- dent Manager, Ernst & Ernst. A. L. Remington, 79, WORCESTER, Warp Compressing Machine Co. John Wooley, 58, ST. Louis, Auditor, Mill Supply & Machinery Co. James F. Collins, 75, WORCESTER, Seidman & Seidman. John N. Garth, 62, TWIN CITIES, Assistant Secretary & Treasurer, Northrup, King Frank O. Ackers, 65, COLUMBUS, The Carroll & Co. Chain Co.

William J. Miller, 67, GRAND RAPIDS, Comp- James L. Rose, 51, INDIANAPOLIS, Partner, troller, Grand Rapids Label Co. Ernst & Ernst. SEPTEMBER, 1951 107 CONGRATULATIONS TO .

King W. Smith, Director of Publications of C o r p . . . . R. W. Ziegler, promoted to As- TULSA CHAPTER, elected Assistant Sec. sistant to the Controller, Blaw -Knox Co. retary- Treasurer, Skelly Oil Co. . J. W. Dualay, named Assistant to CIN- Manager, Steel Works Accounting, J. R. Julius 6. Underwood, Past President Of Stewart, promoted to Works Auditor, CINNATI CHAPTER, appointed Assistant Duquesne Works and J. W. Hanson, ad- Treasurer, Taylor - Wharton Iron & Steel vanced to Assistant Works Auditor, South Co. Chicago Works, United States Steel Co.

Walter R. Howell, DAYTON, named Control- Charles H. Cornell, Past President of BOSTON ler, Acme Aluminum Alloys, Inc. CHAPTER, elected Treasurer, Penobscot Chemical Fibre Co. Raymond G. Baumbusch and Robert S. Leonetti, MID - HUDSON, promoted to Vice Charles J. J. Cox, LOS ANGELES, now Con- President and Auditor, respectively, Fall - troller and Assistant Treasurer, Western Kill National Bank and Trust Co. Air Lines, Inc. James J. Riley, CHICAGO, appointed Works Frank T. Hess, CLEVELAND, now Sales Engi- Auditor, South Works, U.S. Steel Corp. neer, R. S. Deener Systems Co. ... Eric Neubacher, named Chief Accountant, Howard F. Schum, BUFFALO, appointed Di- Edward W. ' Daniel Co. rector of Purchases and Packaging, Arner Co. Charles Rogers, LONG ISLAND, promoted to Treasurer, Servomechanisms, Inc. Jack J. Bricker, HARTFORD, promoted to Di- rector of Purchasing, International Busi- William Kaufman. YORK, appointed Vice ness Machines Corp. President, Carew Steel Products, Inc. James P. Steele, Jr., ATLANTA, advanced to Nathan B. Sebastian, HOUSTON, promoted to Secretary and Treasurer, Jacobs Pharmacy Supervisor, Peat, Marwick, Mitchell & Co. Co., Inc. Edgar V. Hays, TWIN CITIES appointed Henry R. Trees, COLUMBUS, appointed Comp- Comptroller of General Mils, Inc. re- troller, Brewing Corporation of America. search laboratory, Minneapolis, Minn. Norman Fox. ROCHESTER, promoted to As- Arnold Peterschmidt, PORTLAND, appointed sistant Comptroller, Stromberg- Carlson Comptroller, College of Business Admin- Co.; William Solarek, named Chief Ac- istration, University of Portland. countant and William Vick, advanced to Staff Assistant. A. W. Tobias, DAYTON, appointed Budget Administrator, Wright - Patterson Air Force Stanley Lott, Director of Special Activities of Base. COLUMBUS CHAPTER, named Controller, Harris, Inc. Robert Leeper, KANSAS CITY, promoted to Treasurer, Great Western Paint Co. Giles B. Raisner, Past President of PHILADEL- PHIA CHAPTER, promoted to Assistant to Ross Alden, JAMESTOWN, appointed to the the General Factory Manager, SKP In- Board of Directors, Blackstone Corp. dustries, Inc. Otto N. Dodd, COLUMBIA, now Field Ac- H. H. Wunderlieh, PITTSBURGH, appointed As- countant, Production Credit Corp. sistant Vice President — General Services, Jones & Laughlin Steel Co r p .. .. W. H. Caleb A. Smith, PROVIDENCE, promoted to Liddle, elected Secretary- Treasurer and a Associate Professor, Brown University. Director, Monongahela Connecting Rail- road Co. ... Raymond T. Aley, Jr., ad- William L. Esterberg, WORCESTER, elected vanced to Controller and Donald W. Treasurer and Director, Hahnemann Hos- Blaeka, named Auditor, Superior Steel pital. 108 N.A.C.A. BULLETIN COST CURRENTS

Short Reports on Items ofCurrent Interest to Industrial Accountants

Controls Act Renewed and Revised—The be reflected by the action taken. controls legislation which Congress passed and the President signed in the closing days of Two Moves in Materials Control—The Con- July as the one -month extension of last Sep- trolled Materials Plan— related to the use of tember's Act was running out, is effective to steel, copper, and aluminum for an extensive June 30, 1952. It is designated as The De. list of products in two broad classifications fense Production Act of 1950 as Amended by (A and B) on a calendar quarter quota basis the Defense Production Act Amendments of —which is now the mainspring of regulation 1951. The framework of controls administra- of the use of materials as to purpose and tion is little changed. Mutually confirming quantity, was the subject of developments in press appraisals size up the new law in its two directions during August. One of these entirety as neither a substantial retreat from was by way of enforcement of present quota the controls powers which have existed since (to meet a condition in which apparent over- last fall or as strong a reenactment of those allotment of metals has existed) and the powers as the Administration desired. other was the announcement of the extension The modifications are scattered through the of CMP to all products using the three con- bill and cannot well be inclusively cited in trolled metals, starting with the fourth quarter running commentary. However, a few may be of 1951, and the consequent elimination of briefly mentioned. There is the so- called Cape - free (unallocated) supplies of these metals, hart formula which limits the powers of OPS over a sixty to ninety day transition period. to refuse recognition in price control regula- On the first point, the following may be tions to more recent cost changes. There is es- quoted from a recent letter of DPA Admin- tablished. a Joint (Congressional) Committee istrator, Manly Fleischman: on Defense to "make a continuous study of %. You are required to deduct from your programs authorized by the Act." There is allotment any quantities covered by outstand- likewise established a Small Defense Plant ing rated or unrated delivery orders which Administration "not — affiliated with —any other were accepted by suppliers prior to your re- agency." There is some relaxation of maxi- ceipt of the allotment and are scheduled for mum credit terms as prescribed by Regulation delivery during the quarter for which the W at the effective date of the legislation. allotment is valid. You need not deduct from Passage of this reasonably strong continua- your allotment: tion of the mechanisms of economic control (a) Delivery orders which had been ac- came amid warnings that the situation for cepted and scheduled by a supplier for de- which such controls are appropriate, is only livery during the preceding quarter, but delivery now gathering head, principally reflected in of which was delayed by reason of the in- increased production for military needs after ability of the supplier to deliver on the a period which was largely preparatory. A somewhat settled viewpoint toward the ex- original date, istence of international tensions seems also to (b) Imported steel, subject to the conditions SEPTEMBER, 1951 109 indicated in Direction 4 to CMP Regulation 1 on June 30, 1951 and suspended effectiveness "2. You may not place duplicate orders or of (among others) CPRs 22, 30, and 45 re- orders for amounts which, in the aggregate, lating, respectively, to general manufacturers, exceed the quantity limitations established by machinery manufacturers, and apparel manu- your authorized production schedule, in the facturers, except for prices operative at that expectation that you will cancel or reduce time. certain orders so placed after others have been GOR 13 was rescinded following passage of accepted. the new controls act and new effective dates were set for the suspended regulations. How- "3. You may not place orders calling for delivery of more than 35 per cent of your ever, it proved impracticable for the OPS staff to make certain that the so- called Capehart allotment during any one month of the quarter formula had been properly incorporated in for which the allotment is valid. See Direction ceiling provisions and hence, as this is written, 3 to CMP Regulation 1. the regulations above cited, together with "4. If you find that your allotment for a similar ones, have been suspended for a fur- particular schedule is in excess of your needs, ther indefinite period. you must return the excess on Form CMP -12, The Capehart Amendment (Section 402 (4 ) addressed to the industry division or other of the amended Act) restates cost increases person from whom the allotment was received. which may be included in ceiling prices. The "5. If a supplier of controlled macterial applicable portion of the act reads, in part, as with whom you have placed an order is unable follows: to deliver during the month for which you "Nothing in this paragraph shall prohibit the requested delivery, but informs you that he establishment or maintenance of a ceiling price would be able to schedule the order for a with respect to any material (other than an agri- month in a subsequent quarter, you should cultural commodity) or service which (1 ) is try to locate another supplier who can deliver based upon the highest price between Jan. 1, during the quarter for which your allotment 1950, and June 24, 1950, inclusive, if such is valid. However, even if you should be ceiling price reflects adjustments for increases unable to locate such a supplier, you may not or decreases in costs occurring subsequent to use your allotment to place an order for de- the date on which such highest price was re- livery during a later quarter for which it is ceived and prior to July 26, 1951, or (2) is not valid. See Section 20 (I), as amended, in established under a regulation issued prior to CMP Regulation 1." the enactment of this paragraph."

Regulated Price Regulation—The chief im- Pay Levels Slope Upward—Reported immediate effect of the revised production con- pending (and in part a reflection of appre- trols act on the orders of the Office of Price hension that alterations in price control bases Stabilization, was further delay . of effective mean a higher plane of living costs) is a new dates of principal price ceilings for which standard for wage control, which is of the industry has been preparing compliance since escalator variety. It is presumed to be a forth- late spring. These orders had already been coming substitute for the ten- per - cent -over- delayed, as to effective dates, by terms of the base - period -pay policy to which the Wage July extension of the Production Controls Act. Stabilization Board has maintained allegiance This was done through General Overriding since late winter, in spite of divided counsels. Regulation No. 13 which was put in force The new polity is expected to hold that cost-

110 N.A.C.A. BULLETIN of- living fluctuations from a proper underlying surveys of future manpower needs. measure of appropriate wage increases. Manpower policy remains the province of The new policy, if and when announced, Mr. Wilson and his manpower aide, Arthur may well have the effect of obsoleting WSB S. Fleming. Regulations 6 and 9, the former embodying the percentage increase polity and the latter restricting escalator increases to workers cov- More Time and Trade -In Values—The two ered in their employment by written escalator most prominent features of credit control relaxation which were worked into the amended clauses. Defense Production Act relate to extension of the maximum instalment period for purchases Control of Stock Options and Pensions of automobiles from fifteen to eighteen months Studied—The Salary Stabilization Board is and the provision that trade -in values (hereto- currently holding hearings to determine wheth- fore recognized for automobiles only) may be er or not there is an inflationary effect, such credited on the down payment prescribed for as would require regulation, in the issuance other appliances. The Federal Reserve Board, of stock options to selected company personnel acting in response to the new legislation, in line with the favorable tax treatment ac- promptly amended Regulation W to conform corded options of this type under the Revenue to it. Act of 1950. The Act prescribes taxation at Both changes are regarded as inflationary to capital gains rates for "profits" from sales of an undetermined extent. In addition, the stock obtained under such options, if specified availability of appliance trade -in values is conditions are met. There is an industry con- looked upon as having a loop -hole effect be- tention, voiced at the SSB hearings, that these cause of the absence of established scales for options are "noncompensatory." these values, to serve as standards. At the same time, an advisory committee to the WSB is attempting to spell out wage control polity as related to health, welfare Procurement Go- Between for Small Busi- and pension plans. The area has been partly ness—Opinion, which may at least be de- covered in regulations already issued, but scribed as widespread, that the smaller business many problems are regarded as open. units have been at a disadvantage in sharing in defense contracting and subcontracting, has resulted in setting up under the amended Voluntary Manpower Controls Loom—Plac- Defense Production Act a Small Defense Plants ing the Labor Department's Defense Manpower Administration. This administration is to be Administration in the role of operations center independent of other agencies and is em- to manpower control data and appraisal, powered to make production commitments to Charles E. Wilson, Director of Defense Mo- to procurement bodies and to subcontract pro- bililation and top man under the President in duction to small companies. the economic controls setup, issued Defense One device envisioned as useful in this Manpower Policy Statement No. 1 early in process is the establishment of production August. This order requires that procurement pools consisting of several business units. It arms of the government must check with DMA is possible also that such pools might deal as to regional labor supply before entering into directly with government agencies on certifica- contracts or production expansion projects. tion by SDPA as constituting a reliable con- At the same time, DMA has urged employer tracting entity in a particular case.

SEPTEMBER, 1951 11 1 STEVENSON TROPHY COMPETITION Standings of Chapters -Two Months Ended August 1, 1951

PLACE CHAPTER POINTS PLACE CHAPTER POINTS I. W ATERLOO 728 55. CHICAGO ...... 320 2. MUSKEGON 56. BIRMINGHAM 319

...... 3. HOUSTON 598 57. NEW HAMPSHIRE 318 ...... 4. WABASH VALLEY...... 586 58. LOUISVILLE 317 S. FORT W ORTH 565 59. FOX RIVER VALLEY...... 316 ...... 6. INDIANAPOLIS 547 60. PEORIA 315 ...... 7. LEHIGH VALLEY ...... 542 61. ROCKFORD 313 8. BALTIMORE 510 62. DAYTON ...... 310 ...... 9. WORCESTER 509 63. SAGINAW VALLEY 302 ...... 10. BOSTON ...... 508 64. SABINE 301 II. KANSAS CITY...... 504 65. HARTFORD...... 298 12. FALL RIVER 501 66. AKRON ...... 296 ...... 13. GREENWICH-STAM...... FORD 488 67. SYRACUSE 295 14. SPRINGFIELD 481 68. WATERBURY ...... 289 ...... 14. TOLEDO 481 69. SOUTH BEND 287 ......

16. DALLAS ...... 469 70. ST. LOUIS 274 16. ELMIRA AREA 469 70. SOUTHERN . MAINE...... 274 ...... 18. LOS ANGELES 468 72. NASHVILLE 273 ...... 19. PHILADELPHIA ...... 466 73. HARRISBURG 270 20. CHATTAHOOCHEE...... VALLEY...... 444 74. TULSA ...... 269 21. SCRANTON 431 75. MEMPHIS 259 ...... 22. GRAND RAPIDS...... 426 75. MILWAUKEE 259 23. SAN FRANCISCO 406 77. PORTLAND ...... 254 ...... 24. WASHINGTON 405 78. MID- HUDSON 253 ...... 25. DENVER ...... 403 79. BINGHAMTON 250 . _ 25. EVANSVILLE 403 79. JAMESTOWN ...... 250 ...... 27. MERRIMACK VALLEY 400 79. SHREVEPORT 250 ...... 28. NEW YORK ...... 392 82. CALUMET 249 29. CINCINNATI 391 83. BANGOR ...... 248 ...... 30. ERIE 378 84. LANSING 247 ...... 31. CHARLOTTE...... 377 85. WILLIAMSPORT 246 32. BUFFALO 376 86. WICHITA ...... 244 ...... 32. READING 376 87. MOHAWK VALLEY 242 ...... 34. LANCASTER...... 368 88. HAMPTON ROADS 238 34. YORK 368 88. SAN ANTONIO ...... 238 ...... 36. TWIN- CITIES...... 366 90. SEATTLE ...... 235 37. CLEVELAND ...... 365 91. BATON ROUGE 231 38. TRI- CITIES ...... 362 92. BRIDGEPORT ...... 224 ...... 39. ROCHESTER 359 93. NEW HAVEN 222 ...... 40. PITTSBURGH ...... 353 93. PROVIDENCE 222 41. NEW ORLEANS 350 95. CHATTANOOGA...... 214 42. COLUMBUS ...... 349 95. YOUNGSTOWN ...... 214 ...... 43. ALBANY 343 97. PIEDMONT 204 ...... 43. PATERSON 343 98. DETROIT ...... 202 ...... 45. COLUMBIA 341 99. NORTHERN...... WISCONSIN 200 ......

46. LONG ISLAND 336 100. ATLANTA 197 ...... 47. DES MOINES 335 100. HAGERSTOWN 197 ...... 48. OMAHA 330 102. FORT WAYNE ...... 189 ...... 49. KALAMAZOO 328 103. NORWICH 185 1 1...... 49. SAN DIEGO 328 104. JACKSON ...... 180 ...... 51. RICHMOND 327 105. SANGAMON...... VALLEY

...... 174 ...... 52. BROOKLYN 325 106. CEDAR RAPIDS

...... 152 53. NEW ARK 323 107. CUBA ......

...... 147 54. HAWAII ...... 322 108. ANNISTON...... 75 ...... 1 12 N.A.C.A. BULLETIN LITERATURE NOTES

Books and Manuals Principles, A Technique, Problems Public Utility Accounting J. Rhoads Foster and Bernard S. Rodey, Jr., Revised Text — Prentice -Hall, 1951, 690 pp., $10 Accounting Principles Described in the foreword as "the only com- J. Hugh Jackson, McGraw -Hill, Third Edi- tion, 1951, 594 pp., $5.75 prehensive .... treatment of the subject of pub- This is a new edition of a first -year college lic utility accounting," this volume gives due at- text initially put out ten years ago and revised tention to such aspects as utility plants, work in 1946. The author has intended that it order systems, and indirect construction costs. retain a "logical development and unfolding Budgeting and departmental organization are of the subject" from the starting point of "the subjects also tackled. simple balance sheet equation" and that it Public Administration — should have evolved somewhat, in accordance Governmental Accounting with changes such as that toward more ma- R. M. Mikesell, Richard D. Irwin, 1951, 715 pp., $8 chine accounting. The two closing chapters of this work are For Better Reporting — entitled "Unit Cost Accounting for Govern- An Accounting Technique for Re- ment" and "Governmental Auditing and Re- porting Financial Transactions porting." The volume as a whole is compre- R. K. Mantz, University of Illinois, 1951, Paper bound, 91 pp. hensive and extends from government, proper, Identified as Special Bulletin 7 of the Uni- to utility fund accounting and to institutional versity's Bureau of Economic and Business accounting. Research, this presentation has for one of its Magazine Middleman — effects an emphasis on company position rather Case Studies in Auditing Procedure than operating results. Among amplified re- Number 9 —A Wholesale Distributor porting media recommended are statements dis- of Newspapers and Magazines closing enterprise growth and changes in fi- American Institute of Accountants, Paper bound, 1951, 46 pp., 50¢ nancing. Intended primarily for the public practitioner The Student's Task — with clients in the subject line of business, Comprehensive Accounting Problems the text of this pamphlet is similarly pertinent Homer St. Clair Pace and Edward J. Koeuler, to the interests of distributors' own account- Pace 6 Pace, 1951, Mimeographed, 1 Vol., $10 ants. Its principal sectional division is into There are available, in the case of each of material on internal control and audit proce- these two volumes —which are designed for dure. class or individual study —a set of supplementary questions and a teacher's aid. The Manual arrangement of the two volumes is topical, Waste Disposal Industry — which leaves each independent of the other. Uniform Systems of Accounts for Specialized Lines Sewer Utilities Federation of Sewer Works Associations, 1949, Service Industries— Paper bound, Machine duplicated, 117 pp.,

SEPTEMBER, 1 9 5 1 113 The endeavor here has been to embody in a bodied in the lease -or -own and lease -or -sell "tentative manual of practice," an adaptation alternatives (depending on the viewpoint), to sewer utilities of the same sort of account- which have taken recent prominence. The "tax ing system which has taken root in other angle" is explored. utility fields. Office Management — On Our Horizons NOMA Proceedings -1951 Process Hour G l a u — National Office Management Association, Paper bound, 1951, 64 pp. Time Study Fundamentals for Fore- In size and appearance much like NOMA's men Office Executive, Phil Carroll, McGraw -Hill, 1951, 207 pp:, $3 monthly this is a report of The first edition of this small and readable the proceedings of its Thirty- Second Inter- manual was put out in 1944, and, like the national Conference, held last May. There original, the revision is devoted to the every- were addresses by ten speakers, including dis- day language approach. Chapter titles include cussions of "Work Simplification" by Allan H. "How Long Should It Take ? ", "What Job Mogensen and "Mechanization in the Office" Details Repeat ? ", "How to Set Standards ", by Lee S. Whitson.

"You Can Improve Methods ", etc. Foresight Saga — Landlord and Tenant Applications — The Future of Private Enterprise George Goyder, MacMillan Co., 1951, 179 The Lease as a Financing and Selling pp., $2 Device This small volume, of English authorship, is Willord 1. Eiseman and Charles H. Davison, University of Michigan, 1951, 108 pp. subtitled "A Study in Responsibility." It Called Report No. 20 of the Bureau of Busi- tries to place the industrial company in a ness Research of the University, the study scheme of things in which the requirements of presented deals with the arrangements em- social responsibility are satisfactorily met.

Articles

From General to Particular tive work measurement bases which are at- Since McKinley — tainable, understandable and acceptable. Cleri- Milestones on the Path of Accounting cal costs and clerical manpower utilization Percival F. Brundage, Harvard Business Re- come in for consideration. view, July 1951 Containing strong historical, summary and Crucial Moment — philosophical elements, Mr. Brundage's paper The Auditor Meets the Thief traces developments in accounting from the Boris Kostelanetz, New York Certified Public Accountant, July, 1951 turn of the century. Six milestones are dis- Added parenthetically to this title are the cerned and their readings elaborated upon. words, "What to do when the fraud is dis- In Concrete Terms — covered." The author suggests that questions The Use of Work Measurement in relating to guilt (including false accusations), Budgeting confessions, restitution and other matters call Henry P. Dolan, The Controller, July, 1951 for skilled attention and, more than likely, A budget article with emphasis on making it professional help. work, this paper stresses the need for produc- (Con tin ued on page 119)

1 1 4 N.A.C.A. BULLETIN CHAPTER MEETINGS

AKRON, Ohio Sept. 19 Treas., Bridgeport Brass Co., Bridge- Mayflower Hotel port, Conn. Contribution of Accounting Education BUFFALO, N. Y. Sept. 20 to Business & Industry — NORMAN AU- Trap and Field Club BURN, Pres., University of Akron, Akron, Leadership and What It Takes—RALPH Ohio. L. LEE, Dpt. of Public Relations, Gen- ALBANY, N. Y. Sept. 18 eral Motors Corp., Detroit, Mich. Shaker Ridge Country Club Lothams CALUMET, Ind. Sept. 25 How Good Are Standard Costs—THEO- Phil Smidt's Restaurant Hammond, Ind. DORE LANG, Prof., Graduate School of Accounting as a Tool of Management — Business Admin., N.Y.U., N. Y. C. A. J. PORTA, Comptroller, Studebaker BALTIMORE, Md. Sept. 18 Corp., South Bend, Ind. Sheraton Belvedere Hotel CEDAR RAPIDS, Iowa Sept. 1B Controlled Materials Plan — JOHN Hotel Montrose WEBER, District Mgr., U. S. Dept. of Why Accountants and Advertising Men Commerce, Baltimore, Md. Should Work Together More Closely — BANGOR, Me. . Sept. 17 HOWARD B. ROSE, Vice - Pres., N. W. Lucerne Inn Dedham, Me. Ayer & Son, Inc., Chicago, Ill. A New Look at Industrial Accounting — CHARLOTTE, N. C. Sept. 21 CLINTON W. BENNETT, Partner, Cooley Mecklenburg Hotel & Marvin, Boston, Mass. Labor Costs & Labor Incentives —F. H. BATON ROUGE Sept. 19 CROucH, Sr. Time Study Engineer, So- Heidelberg Hotel noco Products, Hartsville, S. C. Accountants' Reports for Management— CHATTANOOGA, Tenn. Sept. 20 GEORGE S. RAPIER, George S. Rapier, Hotel Patten C.P.A., New Orleans, La. Current Economic Prospects —LLOYD B. BINGHAMTON, N. Y. Sept. 20 RAiSTY, Federal Reserve Bank of At- Arlington Hotel lanta, Atlanta, Ga. Accounting Procedure —JOHN MCCABE, CHATTAHOOCHEE VALLEY Sept. 10 Cresap, McCormick & Padgett, N. Y. C. Ralston Hotel BIRMINGHAM, Ala. Sept. 18 Administration of the Wage and Hour Tutwiler Hotel Law and the Wage Stabilization Pro- How Public Accountants Can Help gram—JOSEPH C. NACH, Regional Dir., Their Clients Reduce Costs —W. J. CAR- Wage Stabilization Board, Birmingham, TER, Partner, Mount and Carter, Mount Ala. and Carter, C.P.A.s, Atlanta, Ga. CHICAGO, III. Sept. 27 BOSTON, Mass. Sept. 19 Furniture Mart Hotel Bradford Effective Supervision vs. Internal Con- Government Control on Prices — trol—JAMES E. CALDWELL, Ass't. Comp - MICHAEL J. DI SALLE, Director of Price roller, Goodyear Tire and Rubber Co., Stabilization, Economic Stabilization Akron, Ohio. Admin., Washington, D. C. CINCINNATI, Ohio Sept. 20 BRIDGEPORT, Conn. Sept. 18 Sherato"Ibson Hotel Barnum Hotel The F.B.I. and Accounting —CLAY W. Business Outlook— NoRRIs O. JOHN- PARDO, Special Agent, F.B.I. SON, Asst. Vice - Pres., The National CLEVELAND, Ohio Sept. 20 City Bank of New York, N. Y. C. Hotel Carter BROOKLYN, N. Y. Sept. 19 What One Man Can Do—RALPH BESSE, Clements Club Vice - Pres., & Gen. Counsel, Cleveland Budgeting for More Efficient Manage- Electric Illuminating Co., Cleveland, ment—STANLEY Z. BRONNER, Asst. Ohio. SEPTEMBER, 19 5 1 115 COLUMBIA, S. C. Sept. 20 W. HUME, Analytical Specialist for Jetterson Hotel Mgt. & Attorneys, Fort Worth, Texas. Human Relations —R. T. TAYLOR, Per- FOX RIVER VALLEY Sept. 26 sonnel Dir., Columbia Products Co., Fairbanks Georgian Room Aurora, 111. Columbia, S. C. Current Economic Delusions —SAM A. COLUMBUS, Ohio Sept. 24 MARSH, Prof. of Acct'g., Washington Ft. Hayes Hotel Univ., St. Louis, Mo. Accounting Problems Under Price Con- GRAND RAPIDS, Mich. Sept. 18 trol —PAUL M. GREEN, Acting Ass't. Rowe Hotel Dir. for Acct'g., O.P.S., Washington, The Administration of Pension Plans — D. C. H. A. HILLMAN, Dir. of Employment DAYTON, Ohio Sept. 18 Costs, Westinghouse Electric Corp., Pitts- Engineers Club burgh, Pa. What W e Need in Cost Reports for GREENWICH- STAMFORD. Conn. Sept. 18 General Management —Roy T. HURLEY, Half -Way House Stamford, Come. Pres., Curtiss - Wright Corp., Wood - Budgeting Management Performance — Ridge, N. J. HOWARD GREER, Vice- Pres., Chicago, DENVER, Col. Sept. IS Indianapolis, & Louisville R.R., Chicago, University Club Ill. Operating Under The Wage Stabiliza- HAGERSTOWN. Md. Sept. 20 tion Program—EDWARD J. ALLEN, Dir. of Regional Wage Stabilization Board, Hotel Alexander U. S. Gov't. Current Aspects of the Defense Produc- tion Act of 1950 and Its Impact on Ac- DES MOINES, Iowa Sept. 18 counting —HARRY E. HOWELL, C.P.A., Standard Club Attorney at Law, Dewitt, Pepper & The Application of Break -Even Charts — Howell, Attorneys and Counsellors at ARTHUR H. SMITH, Ass't Comptroller, Law, N. Y. C. General Mills, Inc., Minneapolis, Minn. HAMPTON ROADS, Va. Sept. 19 DETROIT, Mich. Sept. 20 Hogue Club Norfolk. Va. Veterans' Memorial Bldg. Accounting with Respect to Price Stabil- Present Day Look At Economic Trends — ization —PAUL GREEN, Asst. Dir. of ALFRED P. HAAKE, Economic Consult- Acct'g, O.P.S., Washington, D. C. ant, General Motors Corp., Detroit, HARRISBURG, Pa. Sept. 25 Mich. Penn Harris Hotel ELMIRA AREA Sept. 18 The Small Manufacturer —A Case Study Mark Twain Hotel Elmira, N. Y. in Accounting— SAMUEL L. YAVERBAUM, Accounting Functions of the F.B.I. — C.P.A., Yaverbaum & Co., Harrisburg, HARRY G. MAYNoR, Special Agent, Pa. F.B.I., Buffalo, N. Y. HOUSTON, Texas Sept. 24 ERIE, Pa. Sept. 17 Weldon's Cafeteria Corry Country Club Corry, Pa. Focus on Freedom —JOHN BEN SHEP- Excess Profits Tax—HENRY C. HARVEY, PARD, Sec'y of State, State of Texas, Attorney, Jones, Day, Cockley & Reavis, Austin, Texas. Cleveland, Ohio. INDIANAPOLIS, Ind. Sept. 19 EVANSVILLE. Ind. Sept. 20 Morott Hotel Alpine House Defense Accounting Problems —KEN- Accounting in the Stabilization Program NETH F. HARDY, Cost Analysis Section, —PAUL M. GREEN, Director of Acct'g, G. M. C., Detroit, Mich. O.P.S. Washington, D. C. JAMESTOWN. N. Y. Sept. 18 FALL RIVER, Mass. Sept. 20 Hotel Jamestown Stonebridge Inn Tiverton, R. 1. Accounting for a Co- operative as it Business Forecast — ROGER MURRAY, Affects the Milk Industry —JOHN H. Vice - Pres., Bankers Trust Co., N. Y. C. DALEY, Gen. Auditor, Dairymen's League Co-operative Assoc., Inc., N.Y.C. FORT WORTH, Texas Sept. 13 Worth Hotel KALAMAZOO, Mich. Sept. 18 Records: Wage -Hour, Walsh- Healey & Columbla Hotel Wage- Salary Stabilization — DINSMORE No Wage is too High ifit is Earned— I l l N.A.C.A. BULLETIN J. A. MCCORMICK, Partner, McCormick MOHAWK VALLEY Sept. IB & Assoc., Battle Creek, Mich. Teugega Country Club Rome, N. Y. How Current Conditions Affect Cott KANSAS CITY, MO. Sept. 24 Accounting —C. OLIVER WELLINGTON, President Hotel Partner, Scovell, Wellington & Co., Effect of Government Regulations on N. Y. C. Business COttt—JAMES P. KEM, U. S. Senator from Missouri. MUSKEGON. Mich. Sept. 17 Cottage Inn LANCASTER, Pa. Sept. 21 To be Announced —A. J. PORTA, COMP- Hotel Brunswick troller, The Studebaker Corp., South Educational Training in Accounting — Bend, Ind. THEODORE A. DISTLER, Pres. Franklin and Marshall College, Lancaster, Pa. NASHVILLE, Tenn. Sept. 11 Andrew Jackson LANSING, Mich. Sept. 20 Municipal Finance —BEN WEST, Mayor, Union Building, Mich. State College, Lansing, Mich. Nashville, Tenn. Where Do We Go From Here—MASON SMITH, Partner, A. T. Kearney & Co., NEW HAMPSHIRE Sept. 18 Chicago, Ill. Calumet Club Manchester, N. H. A Case Study in the Use of Whole Dol- LEHIGH VALLEY Sept. 21 lar Accounting —W. R. ARCHERD, Asst Hotel Traylor Allentown, Pa. to the Comptroller, Bethlehem Steel, Budgeting Management Performance — Bethlehem, Pa. HOWARD C. GREER, Vice - Pres., Chicago, Indianapolis and Louisville Railway Co., NEW ORLEANS Sept. 20 Chicago, Ill. Country Club Costs, Prices and Profits —J. KIERNAN LONG ISLAND, N. Y. Sept. 18 WHITE, Ass't Sec. - Treas., Office Mgr., Garden City Hotel The Murray Company of Texas, Inc., The Economic Outlook—WILLIAM F. Dallas, Texas. BUTLER, Formerly Sen. Economist, Mc- Graw -Hill Publishing Co., Inc., N. Y. C. NEW YORK, N. Y. Sept. 17 Belmont Plaza LOS ANGELES, Calif. Sept. 18 Wage and Salary Stabilization —HIRAM Elks Club S. HALL, Member Wage Stabilization Effective Supervision vs. Internal Con- Board, Vice- Pres., Bigelow- Sanford Car- trol—JAMES E. CALDWELL, Asst Comp- pet Co., N.Y.C. troller, The Goodyear Tire and Rubber Co., Akron, Ohio. NEWARK, N. J. Sept. 27 Hotel Robert Treat LOUISVILLE, Ky. Sept. 18 Kentucky Hotel Industrial Accounting in a Defense Economy — CHARLES E. HEADLEE, Con- To Be Announced —K. P. VINSEL, Ex- troller, Westinghouse Electric Corp., ecutive Vice Pres., Louisville Chamber Pittsburgh, Pa. of Commerce, Louisville, Ky. NORTHERN WISCONSIN Sept. 18 MEMPHIS Sept, 19 Bilmay Hotel Shawano, Wise. Hotel King Cotton Business Forecasting and Its Application Casualty Insurance— FoRREST F. Lips - to a Merchandizing Program — ARTHUR coMB, Insurance Agent, Central South - ROSENBAUM, Commodity and Business em Insurance Agency, Memphis, Tenn. Analyst, Sears, Roebuck & Co., Chicago, MERRIMACK VALLEY Sept. 20 Ill. Andover Country Club Andover, Mass. NORWICH, Cann. Sept. 20 Controlling Costs Through Variable Norwich Inn Budgets —W. H. PERKS, Ass't Con- Objectives of Budgeting —J. B. HEcK- troller, Norton Co., Worcester, Mass. ERT, Prof. of Acct'g, Ohio State Univ., Columbus, Ohio. MILWAUKEE, Wis. Sept. 17 Milwaukee Athletic Club OMAHA, Neb. Sept. 2S Practical Application of Break -Even Fontenelle Hotel Principles— ARTHUR SMITH, Asst Comp- Investigative Accounting — KENNETH E. troller, General Mills, Inc., Minneapolis, COMMONS, Ass't Special Agent in Minn. Charge, F.B.I., Omaha, Nebr. SEPTEMBER, 19 5 1 117 PHILADELPHIA, Pa. Sept. 20 SCRANTON, Pa. Sept. 12 Kugler's Restaurant Hotel Sterling Wilkes Barre, Pa. Industrial Accounting in a Defense Paperwork Simplification —A New Fron- Economy— CHARLES E. HEADLEE, Con- tier for Management —BEN S. GRAHAM, troller, Westinghouse Electric Corp. Chairman, Future Demands Committee, Pittsburgh, Pa. Standard Register Co., Dayton, Ohio. PITTSBURGH, Pa. Sept. 19 SEATTLE, Wash. Sept. 19 Hotel William Penn Transportation Club Organization Controls in Industry — Salary & Wage Controls— WALTER T. BREHON SOMERVELL, Chairman and NEUBERT, Wages & Hours Div., U. S. Pres., Kopper Co., Inc., Pittsburgh, Pa. Gov't. READING Sept. 21 SOUTHERN MAINE Sept. 21 Wyomissing Club Eastland Hotel Manufacturing for Pro fits—NICHOLAS Increasing Profits Through Budgeting — ST. PETER, Ass't Comptroller, Hyatt RALPH B. KNOTT, Vice -Pres. in Charge Bearing Div., G.M.C., Harrison, N. J. of Finance, Fibreboard Products, Inc., RICHMOND, Va. Sept. 20 San Francisco, Calif. Hotel Richmond SHREVEPORT, La. Sept. 17 Grass Roots Cost Controllers —S. W. The Westerner WHITE, JR., Staff Ass't to Vice - Pres., Isms of Modern Accounting —JOHN L. The Oliver Corp., Chicago, Ill. FAVALORO, Partner, Robbert & Favaloro, ROCHESTER, N. Y. Sept. 19 New Orleans, La. Seneca Hotel SPRINGFIELD, Mass. Sept. 19 The Effect of Taxes on Business Plan - Hotel Sheraton ning—J. J. MASNON, JR., Partner, Ly- Reports to Various Levels of Manage- brand, Ross Bros. & Montgomery, Phil- ment—ERNEST A. CARLSON, Controller, adelphia 2, Penna. Johnson & Johnson, New Brunswick, ROCKFORD, 111. Sept. 11 N. J. Hotel Lafayette SYRACUSE, N. Y . Sept. 20 Accountant Relation to Policy Decisions Hotel Syracuse —MASON SMITH, Partner, A. T. Kear- Profit Planning & Control —D. P. ney & Co., Chicago, Ill. SWEETSER, of Stevenson Jordan & Har- SABINE Sept. 17 rison, N. Y. C. Wayside Inn Orange, Texas TOLEDO, Ohio Sept, 18 Topic to he Announced— LAURENCE H. Secor Hotel FLECK, Dean, School of Business Ad- The Balance Sheet of a Cost Account - min. & Controller of S. Methodist Univ., ant—J. B. FENNER, Vice -Pres. & Comp- Dallas, Texas. troller, The Electric Auto -Lite Co., ST. LOUIS, Mo. Sept, 18 Toledo, Ohio. Sheraton Hotel TRI- CITIES Sept. 18 Business Activity and General Economic Blackhawk Hotel Davenport, Iowa Conditions in 1952 —JACOB BAKER, Di- Costing Problems Under Government rector of Econometric Institute, Econo- Contracts— ROBERT BEYER, Resident metric Institute, N. Y. C. Mgr,. Touche, Nevin, Bailey & Smart, Milwaukee, Wisc. SAN ANTONIO, Texas Sept. 18 Menger Hotel TWIN CITIES Sept. 11 The Position of the Accountant as a Per- The Covered Wagon Minneapolis, Minn. son in the Organization —E. C. RECHTIN, Making Staff Department Services More Gen. Mgr., Gulf District, Ship Building Useful to Management — EDMUND H. Div., Bethlehem Steel Co., Beaumont, PLANT, Coordinator, Kodak Office Su- Tex. pervisory Training, Eastman Kodak Co., SAN DIEGO, Calif. Sept. 26 Rochester, N. Y. Cuyamaca Club WABASH VALLEY Sept. iB Renegotiation Act of 1951— HAYWARD Terre Haute House Terre Haute, Ind. C. ELLIOTT, Dir. Air Force Div., Armed Requirements for Financial Control — Services Renegotiation Div., Los An- STANLEY PRESSLER, C.P.A., Owner, geles, Cal. Harry Stephens & Co., Bloomington, Ind. 118 N.A.C.A. BULLETIN WASHINGTON, D. C. Sept. 19 WORCESTER, Mass. Sept. za Willard Hotel Putnam 6 Thurston Restaurant Cost Quiz—DAvm P. FRY, JR., Vice - The Economic Outlook — RICHARD H. Pres., Pioneer Suspender Co., Darby, GARLOCK, Ass't. Vice - Pres., Bank of Pa. Manhattan Co., N. Y. C. WATERLOO Sept. 18 YORK, Pa. Sept. 19 Black's Tea Room Hotel Yorktown Public Relations in Cost Accounting — Crystal Ball for the Cost Accountant — ARTHUR H. BRAYTON, Exec. Sec'y, Des CLAIR W. BENDEL, Chief Cost Account- Moines Convention Bureau, Des Moines, ant, New Holland Machine Division of Iowa. Sperry Corp., New Holland, Pa. WILLIAMSPORT. Pa. Sept. 10 YOUNGSTOWN, Ohio Sept. 19 Lycoming Hotel Tippecanoe Country Club An Office Can be Mechanized —An Internal Accounting Control and Mech- Office Must be Mechanized — JEROLD S. anized Accounting— MILTON B. BASSON, HANKS, Comptroller, The Lehigh Coal Mgr., Systems Dept., Price, Waterhouse & Navigation Co., Philadelphia, Pa. & Co., N. Y. C.

LITERATURE NOTES (Continued from page 1 1 4 ) Special Problems nection with unlisted stock valuations for this Value Without Quotations — purpose. How to Use Current Listed Stock Market Prices in Fixing Value of Teaching Enterprise Accounting — Close Corporation Stock Managerial Emphasis in Elementary Willard R. Ginder, Journal of Accountancy, Accounting Augurt, 1951 Frederick E. Horn, Accounting Review, Isly, Described here is a case application of a form- 1951 ula advanced by the author in a previous This article outlines criteria for a first course article published some five years ago. The in accounting which would place emphasis on subject is of possible current pertinence to the "those matters which are the basis of mana- valuation of stocks in connection with the gerial decisions, business policies and admin- taxability of limited stock options, although istrative actions" to give the student "a better there has not been a meeting of the minds administrative background even at a very ele- between the authorities and business in con- mentary level."

ADDRESSES OF PUBLISHERS AND PERIODICALS ACCOUNTING REVIEW, THE, c/o Charles Gaa, David Kinley Hall, University of Illinois, Urbana, Ill. Single copy $1.50. AMERICAN INSTITUTE OF ACCOUNTANTS, 270 Madison Avenue, New York, 16, New York. CONTROLLER, THE, 1 East 42nd St., New York 17, N. Y. Single copy 50¢. FEDERATION OF SEWAGE WORKS ASSOCIATIONS, 325 Illinois Building, Champaign, Ill. HARVARD BUSINESS REVIEW, Soldiers' Field Station, Boston 63, Mass. Single copy $1.50. IRWIN, RICHARD D., INC., 3201 South Michigan Ave., Chicago 16, Ill. JOURNAL OF ACCOUNTANCY, THE, 270 Madison Ave., New York 16, N. Y. Single copy 60¢. MACMILLAN CO.,60 Fifth Avenue, New York, N. Y. McGRAW -HILL BOOK Co., 330 W. 42nd St., New York 18, N. Y. NATIONAL OFFICE MANAGEMENT ASSOCIATION, 132 W. Chelten Ave., Philadelphia 44, Pa. NEW YORK CERTIFIED PUBLIC ACCOUNTANT, 677 Fifth Ave., New York 22, N. Y. Single copy 350. PACE AND PACE, 225 Broadway, New York, N. Y. PRENTICE -HALL, 70 Fifth Ave., New York 11, N. Y. UNIVERSITY OF ILLINOIS, Urbana, Ill. UNIVERSITY OF MICHIGAN, Ann Arbor, Mich. SEPTEMBER, 1951 119 N. A. Co A. tools for better industrial accounting

- REGIONAL COST CONFERENCES, 1951 -52

NEW ENGLAND CONFERENCE Sheraton- Biltmore Hotel OCTOBER 12.13, 1951 Providence, R. I. Participating Chapters: Bangor Hartford Providence (sponsor) Boston Merrimack Valley Southern Maine Bridgeport New Hampshire Springfield Fall River New Haven Waterbury Greenwich - Stamford Norwich W orcester

NORTHWEST CONFERENCE Radisson Hotel OCTOBER 19 -20, 1951 Minneapolis, Minn. Participating Chapters: Cedar Rapids Milwaukee Rockford Chicago Northern Wisconsin Tri- Cities Des Moines Omaha Twin Cities (sponsor) Fox River Valley Peoria W aterloo

INDIANAPOLIS CONFERENCE Claypool Hotel APRIL 4 -5, 1952 Indianapolis, Ind. Participating Chapters: Calumet Evansville St. Louis Cincinnati Fort W ayne Sangamon Valley Columbus Indianapolis (sponsor) South Bend Dayton Louisville Wabash Valley Pittsburgh

ATLANTA CONFERENCE At l a n t a , Ga. APRIL 18 -19, 1952 Participating Chapters: Anniston Chattahoochee Valley Nashville Atlanta (sponsor) Chattanooga New Orleans Baton Rouge Columbia Piedmont Birmingham Hampton Roads Richmond Charlotte Jackson Shreveport Memphis

33rd ANNUAL INTERNATIONAL COST CONFERENCE

JUNE 15.18, 1952 • Waldorf- Astoria 0 NEW YORK CITY

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