NAA BULLETIN

SECTION 2 OF ryAH TWO SECTIONS

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FERENCE NEWS

NAA's conference planners have in- Nov. 9 -10, 1962 REGIONAL CONFERENCE: Varied Program troduced a number of innovations for Birmingham, Dinkier- Tutwiler Hotel the 1962 -63 conference year. Fourteen Nov. 15 -16, 1962 conferences are scheduled; 4 Regional, SEMINAR CONFERENCE: Direct Costing Chi- 4 Seminar, 5 Subject and the National; cago, Conrad Hilton Hotel two more than last year. One Subject Dec. 3.4, 1962 Conference, "Flexible Budgets for Cost SUBJECT CONFERENCE: Flexible Budgets for Cost Control Dallas, Statler - Hilton Hotel Control," is scheduled twice, in Dallas on Dec. 3 -4 and in San Francisco on Dec. 6 -7, 1962 SUBJECT CONFERENCE: Flexible Budgets for Dec. 6 -7. Cost Control San Francisco, St. Francis No conference will be held in Jan- Hotel uary, 1963 since that is traditionally Feb. 7 -8, 1963 SUBJECT CONFERENCE: Control and Appli- the management accountant's busiest cation of Research and Development month. However, every other month Costs Boston, Statler- Hilton Hotel from Sept. 1962 through June, 1963 Mar. 1 -2, 1963 has at least one conference and five REGIONAL CONFERENCE: Varied Program New York, Commodore Hotel months, October, November, Decem- ber, February and March, have two Mar. 14 -15, 1963 SEMINAR CONFERENCE: Accounting for For- conferences each. eign Operations , Bellevue - The complete conference schedule Stratford Hotel for 1962 -63 is as follows: Mar. 28 -29, 1963 REGIONAL CONFERENCE: Varied Program St. Louis, Chase -Park Hotel Sept. 27 -28, 1962 SEMINAR CONFERENCE: Modernizing Your Apr. 18 -19, 1963 Standard Costs New York, Barbizon - SUBJECT CONFERENCE: Contribution Ap- Plaza Hotel proach to Profit Planning and Decision Malting Chicago, Conrad Hilton Hotel Oc t. 11 -12, 1962 May 2 -3, 1963 SUBJECT CONFERENCE: Management Ac- SEMINAR CONFERENCE: Financial Account- counting for the Non-Accounting Execu- ing to Serve both Stockholders & Man- tives Cleveland, Statler- Hilton Hotel agement Cleveland, Statler- Hilton Hotel

Oct. 26 -27, 1962 June 23 -26, 1963 REGIONAL CONFERENCE: Varied Program ANNUAL CONFERENCE: Varied Program San Pittsburgh, Penn - Sheraton Hotel Francisco, Fairmont Hotel CERTIFICATES OF MERIT

Thirty authors of manuscripts submitted in the Chapter Competition during the 1961 -62 year have been chosen as Certificate of Merit winners. In addition, an Emeritus Life Associate will also receive a Certificate for a winning manu- script. At the same time, the Lybrand Awards Committee has been appointed by National President Don G. Eder to select the Gold and Silver Medal winners from among the authors of the 10 manuscripts which rated highest in the competition.

Lybrand Awards Committee Members of the Lybrand Awards Committee are John B. Inglis, New York, chairman; William E. Jackman, Rochester; and Charles H. Towns, New Hampshire. The Lybrand awards were instituted in 1949 by the part- ners of Lybrand, Ross Bros. & Montgomery, the public ac- counting firm co- founded by the late William M. Lybrand, past president of NAA. The Gold and Silver Medals are awarded to the best and second best manuscripts submitted each year in Chapter Competition. The Medals will be presented to the winners during the annual dinner on the last day of the Association's 43rd An- nual Conference, June 27, in the International Ballroom of the Conrad Hilton Hotel, Chicago. The winner's names will be announced in a future issue of Section 2.The Certificates of Merit will be presented on Monday, June 25, at the annual business meeting of the Association.

Committee Chairman The chairman of the Lybrand Awards Committee, John B. Inglis, served the Association as national president in 1958 -59. He was national vice president in 1951 -52; na- tional director of education in 1947 -48; and served on various national committees and on the national board of directors. He retired recently after many years as partner of Price, Waterhouse & Co., New York. Mr. Jackman served as national vice president during Mr. Inglis's term as president and is a past president of the Stuart Cameron McLeod Society. He first joined the Association in 1927 and has been associated in various capacities with East- man Kodak Co., Rochester, since 1923. Mr. Towns, who was national treasurer from 1956 to 1960, has been a member of the Association for 39 years. For many years he was a partner in Loomis, Suffern & Fernald, New York, which merged into Lybrand, Ross Bros. & Montgomery shortly before his retirement two years ago.

J. H• INGLI - Award's Thirteenth Year Chairman The past year —the thirteenth since Certificate of Merit was instituted as an authorship award —has been a very fruitful one. Thirty -one NAA authors, previous contributors and new ones, whose articles ranked highest by chapter com- petition standings, have qualified for the award. Most of these outstanding papers have already been pre- sented to NAA members through the Bulletin and have thus added to the wealth of information and knowledge that NAA W. E. JACKMAN members share by exchanging their ideas, communicating experience and fostering further progress of the art of ac- counting. Listed below are the winning articles, together with the name of the author, the chapter (if any) receiving credit for the manuscript and date of publication where that has taken place. Topics of current interest as well as further contribu- tions on some familiar issues are represented. The listing is arranged according to subject and relevance of the coverage. C. H. TOW NS Frontier Thinking

DIVISIONAL PROFIT CALCULATIONS —NOTES ON THE "TRANSFER PRICE" PROBLEM— Howard C. Greer The writer analyzes the three bases principally applicable for estab- lishing interdepartmental transfer prices, designated as cost, market and negotiation bases. Each one is evaluated as to its mechanics and usefulness. The author concludes that the demonstrably fallacious notion of calculating individual profitableness could be supplanted by another approach, the characteristics of which are outlined in the article.

GUIDEPOSTS IN DEVELOPMENT OF ACCOUNTING EDUCA- TION— William A. Terrill, Piedmont, Accounting education is both education as such and education for ac- counting. The present author notes and approves of a current shift in balance from the latter to the former. It is his opinion that improve- ments in accounting education must focus about the inculcation of critical thinking and orderly thinking both of which are necessary to providing the future accountant with the capacity to cope with change and to be precise in serving varied demands for information.

THE BALANCE SHEET—A CRITICAL ANALYSIS— George L. Battista and Gerald R. Crowningshield, Trenton The authors discuss the balance sheet as to its value and usefulness and come to the conclusion that as a general purpose statement it is of questionable value. It is their opinion that the balance sheet in its present form should be either removed from annual financial reports or labeled in such a manner as to point out its weaknesses and limitations.

CAN WE PASS THE CHI SQUARE TEST? —Paul R. McClenon, Washington, A "made easy" presentation is offered here to enhance understanding of a statistical technique that not only appears quite often in various articles but also could well be included in the accountant's kit of analytical tools when estimating the significance of variances.

THREE APPLICATIONS OF PRICE INDICES IN PROPERTY ACCOUNTING — Robert H. McCleary, Pennsylvania Northwest, March 1962 Starting with a few insights into his company's flexible, centralized, mechanized system of property accounting, the author of this article tarns to applications by which replacement cost indices are used (1) to get at cost of components retained in rebuilding equipment, (2) to establish prices of used equipment for sale and (3) to list insurable values of property items.

COMING IMPROVEMENTS IN INFORMATION PROCESSING SYSTEMS —H. Warren White, Los Angeles, June 1962 One of the most sophisticated of management information systems, the "real time" concept of data processing will render what now seems the ultimate in tools for simplification of accounting pro- cedures. The author describes the main technological advances em- bodied in this system and comments on the ensuing challenge to the profession. THE ACCOUNTANT'S ROLE IN ELECTRONIC DATA PROC- ESSING —Jay W. Bell, Not only a challenge but for many an immediate necessity, the ma- chines that still appear foreboding to some accountants can hardly be ignored even by those who temporarily may not find their appli- cation feasible. The author's reasoning leads to the conclusion that there is no room for indifference toward what has already become a standard tool of the profession.

INCOME TAX ALLOCATION —Fred J. Dunderman, Fort Wayne A review of the positions taken in current literature, the article also illustrates consequences of some established methods which are used by the author to relate the effects to the underlying principles.

New Light on Old Topics

LOOKING AHEAD IN EVALUATING PROPOSED MERGERS —David F. Folz and J. Fred Weston, Los Angeles, Increasing numbers of mergers have been taking place but, the authors feel, some attendant financial aspects are still being mis- understood due to insufficiently analytical data provided for their evaluation.

ORGANIZATIONAL ASPECTS OF INVENTORY MANAGE - MENT —Stanley Z. Bronner, Bridgeport, The use of elaborate methods, the author contends, must be supple- mented by operational efficiency and indicates that, if recognized as a function coordinating divergent factors, inventory management brings about closer cooperation among various units within the company, and better over -all results.

TOWARD A GENERALIZED BREAK -EVEN FORMULA —Wil- liam J. Vatter, Oakland -East Bay, December 1961 In an attempt to adapt the break -even formula to the various sets of figures as arrived at by differing accounting techniques, and insure meaningful, undistorted results of break -even analysis in each and any instance, the present author strives for reconciliation through a refine- ment of the basic formula.

STANDARD COSTING NEEDS BETTER VARIANCES —David Solomons, Philadelphia, December 1961 In his re- evaluation of some familiar aspects of standard costing, the author explores its shortcomings so as to expose more pointedly the vast potentials yet to be exploited.

A SYSTEM OF MANAGERIAL CONTROL —Spencer A. Tucker, Queens The author's thesis, that the difference in the method of applying managerial talent makes for disparity in results among companies, is formulated here in terms of establishing a meaningful system of control. THE ROLE OF THE CONTROLLER AS AN INTEGRAL MAN- AGEMENT CONSULTANT —Charles W. Patmore, Dallas The consultative and advisory potential of controllership, which the author finds played down in the practice, is stressed here. A dynamic controller's function is seen as an opportunity for a more vital con - tribution to the company that should be exploited to the fullest. A STUDY ON RECORDS RETENTION AND DISPOSAL FOR THE SMALLER CORPORATIONS —Brian A. Wyles, Lake Superior A definite records retention policy is probably the keynote to the whole program. A step -by -step approach to establishing and main- taining such a program is described in this article, along with the various requirements concerning records retention.

On Direct Costing

CONVERTING TO DIRECT COSTING —Ray E. Longenecker, Lancaster The method of conversion is expounded here with a view toward reservations which might be raised, taking also into consideration the most prevalent reasons for existing resistance to the acceptance of direct costing.

COMBINED COSTING PROCEDURES AT WORK—George W. Frank, Delaware, June 1962 The basic proposition of the article, that various costing procedures do not represent mutually exclusive alternatives, is strengthened by the illustrative case study which is introduced to show the advantages rendered by their combination into a single costing system.

A DISCUSSION OF THE USEFULNESS AND THEORY OF DIRECT COSTING —Louis H. Jordan, New York, March 1962 No absolutes are found in the course of this presentation but five areas in which direct costing is serviceable are noted, following which the author delves into theoretical considerations and finds no road- blocks to acceptance of direct costing in the more usual contentions of absorption costing adherents.

THINGS LEARNED IN THE INSTALLATION OF DIRECT COSTING —John V. James, Olean- Bradford Area, March 1962 Characterizing the impact of change to direct costing as a favorable one in terms of cost control, forecasting, general information, and closings, the present author states that operating management was even more ready than accounting personnel to recognize the utility of the method. Conversion of direct -cost inventory to a whole -cost basis is illustrated.

DISCLOSURES OF THE DIRECT COSTING INCOME STATE- MENT— William David Abel, Lancaster, March 1962 To the present author, income statements on the direct costing basis contain useful revelations, not limited to cost - volume -profit relation- ship, on points on which absorption costing statements are blind or misleading.

BALANCING THE CONSIDERATIONS FOR A COMPANY THINKING OF DIRECT COSTING —Paul R. Walsh, Chicago, March 1962 Following a review of absorption costing and some features of its development, claimed advantages and disadvantages of direct costing are enumerated and discussed in this paper, giving a clue to reactions to them which may be characteristic of many companies. Forecasting and Budgeting

IMPROVEMENT OF BUDGETING BY MEANS OF A "BASIC" REPORT —R. G. Driegert (with D. E. Kennedy), North Penn. The basic budget concept as presented here is a going- concern atti- tude in budgeting. This approach encompasses a system of con- tinuous budgeting developed more in depth than annual budget mechanism and oriented toward consistent policies and lasting effects.

BUDGETARY PLANNING AND CONTROL IN A STEEL COMPANY —D. Richard Smith, Pittsburgh, The comprehensive budgeting system narrated here, internally ad- justed to meet the different purposes of budgeting, is an integrating force in company operations for this multi - divisional corporation.

ELIMINATING THE PITFALLS IN FINANCIAL FORECAST- ING— Robert B. Cooke, Nashville, Integrated preparation of the forecast, that eliminates internal incon- sistencies, and advance re- appraisal of it from the management point of view, that often reveals faulty assumptions or flaws in method used, are the forecaster's means of avoiding the avoidable. The author elaborates on this theme by the example presented in the article. RESEARCH BUDGETING IS DIFFERENT —Fred W. Shaffer, Philadelphia Special nature of the research program as an industrial activity must be acknowledged and its characteristics allowed for, if the budget is to aid in planning and coordinating, yet leave the basic common ele- ments preserved, to provide for its incorporation in the overall budgetary system. The author discusses the main aspects of such an endeavor. Products, Marketing, Pricing

BASICS FOR PRODUCT-PRICING AND MARKETING DECI- SIONS—W. J. Blood, Olean- Bradford Area The purpose here is to outline some of the important basics to mar- ket- oriented planning. The impact of the analytical solutions and the role of price - screening in product -line and market profit analyses are described. MARGINAL INCOME AS A FACTOR IN PRICING— William C. Tuthill, Columbia In presenting marginal analysis in its context, the author both em- ploys theoretical background and supplies examples to identify its characteristics of significance for practical application.

MARKETING COST ANALYSIS —A REPLY—Robert K. Jaedicke, San Francisco This article elaborates on the allocation of fixed cost in combination problems, referring to the position taken by the author of a previous article in the Bulletin, The purpose is to clarify the point in question.

PRODUCT COST INDEXES AS MANAGEMENT TOOLS— William K. Blue, Jr., Blue Grass Area If reporting is to measure and evaluate the trend of the business, then establishing a system of manufacturing measurement indexes is the correct approach in the author's opinion. He discusses some of the more amenable methods of developing and using them. The 1961 -62 year was the first time that Society inductions were held at all the regional conferences. Previ- ously, interim induction ceremonies had been held only at the regional con- ference in San Mateo, Calif., Dec. 1960, and at a special ceremony in Honolulu, Hawaii, Nov. 1960. Gen- erally in the past, inductions had taken place only at annual conferences. Members must be present for induc- tion. Membership in the McLeod Society is composed of past national officers and directors and past presidents of chapters. The objectives of the Society are to promote and perpetuate the ac- quaintance and friendships developed Two hundred NAA'ers will be in- through NAA service. Through this ducted into membership in the Stuart means there has evolved a group of Cameron McLeod Society at its 27th experienced and dedicated members annual meeting, Monday, June 25, who have contributed in great measure 1962, which will be held in conjunc- to the development and expansion of tion with the Association's 43rd An- the Association. nual Conference at Chicago's Conrad McLeod Society officers who have Hilton Hotel. It will be the second served during the 1961 -62 year are: largest number of inductees in the President Jesse G. Kline, Philadelphia; society's history. Vice Presidents L. C. Bollinger, Chi- Association members were inducted cago, and Francis H. Hall, New during the past year at the three re- Haven; Treasurer Philip J. Warner, gional conferences: 34 at Long Beach; New York; and Secretary Milton Hud- 22 at Dallas; and 21 in New England. ders, Brooklyn; Assistant Secretary- The society's total membership will Treasurer Rawn Brinkley, national approximate 1,100 after the annual headquarters. conference, or almost one -half of those Officers for 1962 -63 will be elec- NAA'ers eligible. ted at the annual meeting, June 25,

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together with six governors to fill ex- pired terms. A total of 12 governors are in office in any given year. The Society's governors, whose term expires June 30, 1962, are: � W l Clinton W. Bennett, Boston; Carl Dannenfelser, Ft. Worth; George P. Doering, Denver; Oliver J. Edwards, McLEOD SOCIETY members attending a dinner at Birmingham; John L. Favaloro, New the recent New England Regional Conference are, from left to right: W illiam W. Johnston, Springfield, Orleans; and Clarence E. Stender, society governor; Francis H. Hall, New Hampshire, society vice president; speaker Clinton W. Bennett, Milwaukee. Boston, governor; and Don G. Eder, Youngstown, national president. In the foreground is Norman H, Governors whose terms expire June S. Vincent, Boston. Society president Jesse G. Kline, 20, 1963 are: Oliver R. Altum, Indi- Philadelphia, can be seen behind Mr. Hall's head. anapolis; Charles J. Dougherty, Scran- ton; Donald J. Guth, Dallas; William zation's name was changed to the W. Johnston, Springfield; Norman E. Stuart Cameron McLeod Society in Kerth, St. Louis; and John D. Lewis, honor of the Association's first national Nashville. secretary, who served the Association The Society was founded in 1934 in that capacity from 1919 to his death as the Spot Club. In 1957 the organi- in 1944.

NAA OFFICERS, past and present, McLeod Society members who attended the New England Regional Con- ference and Society Dinner are, from left to right: Herman A. Popenfoth, Hartford, national president 1951 -52; Clinton W. Bennett, Boston, national president 1948 -49; Don G. Eder, Youngstown, current na- tional president; Charles H. Towns, New Hampshire, national treasurer 1956 -60; and Leslie I. Asher, -North Shore, national president 1959.60. P4&je 0

NAA BULLETINS, complete from 1923 to 1961, were presented to San Fran- cisco's Golden Gate Col- lege librarian, Dr. Paul Kruse (right), by Mario Mazza, San Francisco NAA Chapter president (left). Looking on is W. Stanley Da vi s , as s oc i ate dea n, school of accounting. The monthly Bulletins were col- lected by San Francisco chapter member Herman Carl Domnick during the years of his Association affiliation. Mr. Domnick died in 1961.

NORTHERN NEW YORK Chapter members who recently completed the annual audit of the St. Lawrence Council Boy Scouts of America are, from left to right: Charles Barnett, chapter vice president; Louis Burns; Harold Demo; and Claude McConnell. A fifth chapter member, Morris Pinto, certified the report to BSA national headquarters. MID - HUDSON Chapter members conducting an audit of the 1962 Dutchess County Community Chest cam- paign are, from left to right: Francis X- Burnes, Jr., chapter president; Hamilton E. Meharg, chapter past president; Edward J. Cirillo, Jr.; and William A. Carver.

SANGAMON VALLEY past presi- dent R. I. Dickey, left, professor of accountancy at the University of Illinois, presents checks to James E. Buncher and Donald L. Mini, graduate students at the university, as winners of the ac- counting essay contest sponsored by the chapter. The students shared an aw ard of $50 for their papers on an industrial account- i ng subjec t .

LOS ANGELES C ha pt e r of NAA c o nduc t e d in Ma r c h, a l o n g w i t h f v e o t he r a c c o u nt i ng associations, a Ca r e e r Gu i d a n c e Ce nt e r E x hi bi t to inte re st S o ut he r n C a l i f o r n i a st udent s i n a c c o u nt i ng care ers. V i e w i n g p a r t o f the e x h i b i t a r e NA A ' e r s , f r o m le f t to r i gh t : E d w a r d T. B r e a r t o n; O. B. Hi ll , e x h i b i t c h a i r ma n ; a n d Pre st on T. C r a ne . Ano t h e r Los Ange le s C ha pt e r me mb e r , Fr a nk Ga r r i s o n, se r ve d as ass oc ia te c h a i r ma n . D u r i n g t he 10 da y s of the s h o w , 10,000 hi g h school a n d juni o r c o ll e ge st udent s vi s it e d the ma n a g e me n t a c c o u nt i ng e x hi bi t . To t a l attendance at the Center exceeded 40,000. AreYou u01115

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MUM A c c o u n t i n g C r o s s w o r d P u z z l e by Robert C. Riley Chairman, Department of Economics and Business Administration Lebanon Valley College. Past president of NAA Harrisburg Chapter

Across 9 Frequently found in EDPM rooms encased in a glass box with the instruction —break in case Promissory of emergency 3.1416 10 Used in an early construction job (taken from A selling expense account title (abbr.) Adam to make Eve) Difference between standard cost and actual 11 Last two letters of a word which makes the cost; figures in management by exception prin- boss smile ciple 12 on a Hot Tin Roof 13 Indefinite article 16 Collectible, whether or not due 14 Left side of an account 18 In statistical reports, used to indicate data is IS April 15 will make you think of this not available 17 Cops embezzlers 19 A kind of roll recipients are fond of 18 Gross less deductions 20 Mark of battle (budget battle, that is) 19 Add an "o " and you will have the unit of ac- 21 Physical training (abbr.); the number 109 will count in Mexico remind President Kennedy of these letters 21 A stock value (dollar amount assigned to the 22 Manufacturer of Accounting equipment share by the company's charter); golfers seek 25 Estimate of expenditures over receipts to shoot below it 31 Opposite of credit (abbr.) 23 Device in which you accumulate and sum- 33 Incentive wages are sometimes expressed as marize the effect of transactions upon a par- rate (abbr.) ticular item or an appropriately titled written 35 Burden record representing some specific asset or equity 38 Sum of money lent at interest of the balance sheet or income, cost, or ex- 40 Goals or objectives pense on the income statement 42 Sea eagle 24 and flow 43 Island known for its stone money 26 An affirmative answer 45 Musical note 27 Therefore 46 For example 28 Amount 29 Late accounting reports the boss 30 No discount (abbr.) 32 Antonym of permanent duty (abbr.) 33 Ratio indicating the percentage of sales avail- able to cover fixed charges and profit 34 Book value of a fully depreciated asset 36 Abbreviation for Net Sales minus Cost of Goods Sold 37 An option or right to buy securities or prop- erties at a specified price within a specified time 39 A negative answer 41 TV ads urge you to ask for National also. Lifebuoy claims to rid one of it 42 Ownership interest; excess of value of securi- ties over the debit balance in a margin ac- count 44 Not earlier 47 Scientific management (abbr.) 48 Indefinite article 49 What your boss Is likely to be when reports are neat, accurate, and timely or when the attractive young secretary is present 50 Standard operating procedure (abbr.)

Down 1 The world's largest accounting organizatiop or association 2 Officer of the day (abbr.) 3 (round) lot 4 Public accountant 5 Periodic payment made to bondholders 6 Nickname for one from The Lone Star State (Answer on Page 23)

14 According to the Saturday Review, "What is communicated best in this book is Harry Bulbs's own eagerness to learn and to accommodate his mind to the realities of a revolutionary world society. Here, one feels, is a good man who in his own development as a public figure has instinctively steered toward the sensible and humane. Now in his retirement it is good to have from him his unequivocal statement of faith, expressed in the unqualified rhetoric of fact: `The goal of One World ... is a common destiny to which each and all of mankind can contribute. Peace with justice and freedom through world order and under uni- versal law is attainable. Let us work for it.' " Mr. Bullis first joined the Associa- F— e t C hv n of QM Owd. C.ener 1 MI.. Inc. tion in 1920 and was the first president of the Minneapolis Chapter in 1920- Harry A. Bullis, an NAA past national 21. He was elected to the national president and former president and board of directors in 1925; served as chairman of the board of General national director of research for three Mills, Inc., is the author of a book, years, 1926 -1929; was national vice "Manifesto for Americans," recently president for three years, 1929 -1932; published by McGraw -Hill Co. Mr. and also served as director of chapters Bullis states in his introduction, "I for two years, 1930 -1932. Mr. Bullis have written this book as my legacy served as national president in 1932 -33. and my credo. It cannot give even all Mr. Bullis is the originator and donor the answers I should like it to give, but of the national president's Badge of it can give some; it will raise questions Office, featured on last months Section and it can help in redefining the kind 2 cover. The l4k gold NACA emblem of standard we must raise and support and the ribbon with bars engraved if we are long to survive." Included in the book are chapters with each president's name and year of on American Agriculture at Home and office were donated to the Association Abroad, Government and Business, by Mr. Bullis after his term as national Taxation and Tax Reform, Labor and president. An emblem change was Management, Trade with the Rest of made after the Association became the World, and Aid and a Free World. NAA in 1957.

15 Publications Presented New University Planned t , : i _# - Bound copies of recent NAA literature A number of Dayton Chapter members were presented to three universities in its are participating in a fund drive for a new area by members of the Calumet Chapter. university for Dayton. According to Day- Material donated by Wilbur Andrews went ton's Balance Sheet they are: Chapter Presi- to Valparaiso University; Purdue University dent Elwyn Failor, Lewis E. Cummings, received William Scully's material; and J. W. Kercher, Orval Cook, Joseph A. Indiana University -Gary received A. F. Gravelle, John Harris, Wilhelmina Heck, Hildebrant's Bulletins and Research Reports; Donald K. Hoke, Walter Ireland, Florence while Indiana University - Calumet obtained James, Richard R. Hill, John Murray, literature from Michael J. Grisak, who Harold Nims and Donald Rufner. coordinated the presentations. Approximately 3,500 students will be served by the facilities proposed, which will Student Night be jointly administered by Ohio State Uni- versity and Miami (Ohio) University. Both Three senior accounting students from are state schools and would supply the in- Drake University and three industrial admin- structors needed for the Dayton operation, istration seniors from Iowa State University The total goal is 6 million dollars, 41/2 were the honored guests at the Des Moines million which is to be collected from Dayton Chapter's April technical meeting. All six Area industry and 11/2 million from general are honor students. solicitation.

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Radio Commentaries Past Presidents Night #

A series of radio lectures on the economic The March meeting of the Baltimore problems of underdeveloped nations is be- Chapter honored its past presidents. Former ing presented by John D. Simmons, a mem- prexys attending with their years of service ber of the NAA research staff. Three pro- were: W illiam R. Walton, Jr., 1935 -36; grams have already been broadcast vy t6 Joseph A. Hlavin, Jr., 1937 -38; S. Chaplin radio stations in New Jersey and a fourth Davis, 1938 -39; Charles O. Gunther, Jr.. is scheduled at the end of this month. Plans 1946 -47; James L. Benson, 1948 -49; William call for an indeterminate number of future A. Cook, 1950 -51; Leonard B. Rowles, 1952- lectures. 53; Henry A. Koenig, 111, 1953 -54; John R. The 15- minute programs are taped by Reuling, 1955 -56; George O. Sparks, Jr., Rutgers —The State University, N. J., as 1958 -59; James W. Jones, 1959 -60; Elroy J. part of their series of "Rutgers Reports on Snouffer, 1960 -61. World Affairs." Mr. Simmons has been a lecturer in economics and management at Rutgers for the past five years. He joined NAA's research staff in . Student Award NY Past Presidents S agi n aw Vall ey Ch a p t e r pre se nte d its an- Ch a p t e r past presidents we re hon or e d at nual St ude nt Acc ou nt i ng A w a r d to E d wa rd N e w Y o r k ' s M ar ch me et i ng. At t e ndi ng, G. He n ne k e , w h o gra dua t e s fr om Fli nt Col - with their dates of service, were: Charles H. lege, Mi ch. this mo n t h . T h e A w a r d , whi ch Towns, 1929 -30; Gou ld L. Harris, 1942 -43; consists of an accountant's ha n d bo o k and a Carl E. Li ndquist , 1946 -47; Cecil D. M ar- pl aque , was presented at the Chapter's Apri l shall, 1949 -50; Che st e r A. Rosenberger, te chni cal me e ti ng by N A A ' e r J. A. He r ri c k. 1953 -54; W illiam E. Jacoby, 1954 -55; W il- M r. He nn e ke , has been elected to Beta li am J. Ritt er, 1957 -58; F re d J. Sengstacke, Al p ha Psi, the nat i onal accounting honorary 1958 -59; Et t ore Barbatelli, 1959 -60; Ja m e s fraternity, and pl ans t o d o gra dua t e wo rk at P. W helan, 1960 -61. the University o f Mich igan this fall.

16 Promotions and New Positions Philadelphia as division cost controller, Stokes Machine Works Co.... R. O. Mader J. H. Ake, Akron, was recently named has been promoted to assistant treasurer of assistant comptroller of T he Goodyear Tire the Nationwide Corp. & Rubber Co. . John Recny has moved to Ohio Match Co. as assistant controller. William A. Daniel, Coosa Valley, has . . . Kenneth Roch was promoted to senior been named assistant treasurer of Pioneer cost accountant in the commodity cost de- Home Owners Life Insurance Co. partment of The B. F. Goodrich Industrial John V. James, Dallas, has been elected Products Co. vice president- finance of Dresser Industries, Lamar J. Gabel, Ann Arbor, has been Dallas. He is past president of Elmira Area named chief accountant, replacing Ralph Chapter and currently member of NAA's J. Wall who has been promoted to comp- Executive Committee. troller of the Dundee Cement Co. . Emerson Eschbaugh, Dayton, past presi- J. Lee Loekard is the new controller at the dent, has accepted the position of comp- Home and Commercial Electronics Div., troller, Main Au to Parts & Glass Co. Sylvania Electric Products Inc., Batavia, Stanley Berlin, Detroit, has moved to New York. Sylvania is a subsidiary of New Orleans as supervisor, general ac- General Telephone & Electronics Corp. counting at Chrysler Corporation's Space Frank B. Reese, Jr., Beaver Valley, has Division. . . . Arthur Gignac is now plant been elected vice president of Ingram - controller at Chrysler's Detroit Tank Plant. Richardson Mfg. Co. He continues as treas- . . . George Keller was recently named urer. manager- division accounting at Chrysler's Frank F. Oddi, Boston, has been pro- Missile Plant. moted to managing director of A. C. Cosser, Bobbie Lee Peters, Evansville, has been Ltd., , wholly -owned subsidiary of promoted to assistant buyer at Whirlpool Raytheon Co. Corp. Frederick A. Downey, Bridgeport, was George A. Robelen, Greenwich- Stamford, elected treasurer of T he Warner Bros. Co., has been elected treasurer and director of Bridgeport, Conn. finance; and William K. Ferris has been Paul Shulman, Bu,Salo, has been elected elected assistant treasurer and controller of to the Board of Directors at Sattlers, Inc. Nash Engineering Co., South Norwalk, Conn. Charges P. Roney, Jr., Chicago's past president, has been named treasurer, and Gladys Coleman, Hampton Roads, is now controller of the Steel Sales Corp. head bookkeeper at Regis Milk Co., Nor- folk, Va. J. M. Zlatoper, Cleveland, was elected treasurer of The Lubrizol Corp. R. G. Jamieson, Hawaii, has been pro- moted to vice president and treasurer of John Davis, Columbus, has moved to Alexander and Baldwin, Ltd. . . . Gerald

17 Payne is now vice president and controller Bernard J. Davis, Long Island, has been of the Hawaiian Telephone Co. . named president of the Gull Marine Corp., Clarence Taba has been advanced to vice Amityville, L. I. . Vincent Nagengast president at Honolulu Savings and Loan has been appointed assistant to the con- Co., Ltd. troller, systems and procedures, Doubleday & Co. William R. Masi, Hartford, has been ap- pointed comptroller at Gerber Scientific Ed Coughran, Sr., Los Angeles, has ac- Instrument Co., S. Windsor, Conn. cepted the position of administrative man- ager with Advance Data Systems Corp. . . . James Callifer, Jacksonville, is now chief James Desherow was recently promoted to accountant at Jax Minit Markets. corporate auditor for the Times - Mirror Co. R. Stanley Doebler, Jamestown, has been . Leo Gilleran has been elected treasurer named vice president- finance for El- Tronics, of Ralphs Grocery Co. . Fred Michels Inc., Warren, Pa. . Harold Lapoint has is now controller at Goss - Jewitt Co. . . . been promoted to division controller -parts Paul Paulson moved to The Pennzoil Co. as division, Sylvania Electric Products, Inc. in treasurer. Warren. Lawrence E. Newhall, Mass. -North Shore, Glenn E. Stallard, Kansas City, has been was recently appointed comptroller of the elected controller of the Great Lakes Pipe Electrical Supply Corp., Cambridge, Mass. Line Co. . . . Thomas J. O'Connell was promoted John Brown, Lansing, has been appointed to manager, cost evaluations, and Leslie B. chief accountant for Commonwealth Asso- Rivers to manager, cost accummulators, ciates, Inc., Jackson, Mich. . . . Al Colberg GE's flight Propulsion Div., General Elec- has been named comptroller at the Mar- tric, Lynn, Mass. shall Plant, Eaton Mfg. Co., replacing Phillip Dennett, Merrimack Valley, has Richard Munz who becomes comptroller of been elected assistant treasurer of S. D. Eaton's Fuller Mfg. Div., Kalamazoo. Warren Co., Boston. . Rene Latiberty Vernon O. Youngdahl, Lake Superior's has transferred to the Worumbo Plant, J. P. Stevens, Falls, Maine as adminis- first president, is moving to Pittsburgh to become assistant treasurer and comptroller trative assistant to the plant superintendent. of Snyder Mining Co. and assistant treas- C. J. Hurst, Milwaukee, is now division urer of The Shenango Furnace Co. . . controller, Bolens Products Div., Food Ma- The following promotions were announced chinery & Chemical Corp., Port Washing- at Oliver Iron Mining: John J. Specht, as- ton, Wisc. sistant to the comptroller; Arvo L. Wir- Keith Bartz, Minneapolis, was recently tanen, manager -works accounting; Thomas promoted to chief accountant, Commercial G. Barry, manager - general accounting; Div., Minneapolis- Honeywell. . John Robert G. Knox, supervisor - general ledger; Walton has joined J. M. Dain & Co., Inc. Glen A. Sarberg, supervisor- property and as secretary- treasurer. inventory; George W. Coad, superintendent- warehouses; O. W. Ekroot, staff assistant to John Arrol, Nashville, is being trans- manager -works accounting. ferred to Avco's Electronics and Ordnance Div., Richmond, Indiana as assistant con- Three Lima Chapter members have been troller of the ordnance operations. ... Paul promoted by Westinghouse Electric Corp.: Moran has moved to Knoxville to become N. E. Berneburg to manager of accounting, vice president and secretary of Shoney's Aerospace Electrical Div.; Clark Jones to Big Boy of Knox County, Inc. supervisor of accounting, outlying plants, Small Motor Div.; and E. M. Taylor to James Murphy, Newark, is now director manager of accounting, Small Motor Div. of administrative functions, Atlantic Metal Products. William Lee, Long Beach, is now man- ager of cost and billing, Marquardt Corp., William J. Baldesara, New Hampshire, Van Nuys, Calif. has been promoted to comptroller and

t 8 Leslie A. Neal to vice president for produc- Merle Yontz, chapter past president, is tion at Hubbard Farms, Inc., Walpole, now assistant to the president at Caterpillar. N. H. T. Earle Hutchinson, Philadelphia, has Colonel Laurence T. King, New York, been named chief deputy controller for has been appointed finance and accounting Delaware County, Pa. officer on the staff of the Commanding General, First US Army, Governors Island, William Cavanaugh, Phoenix, is now New York. . Joseph Morn is now con- controller of Midland Specialities Co., Inc. troller of the Quartite Creative Corp. . . . Sanford Gadient has moved to Union Walter I. Reich has been named treasurer Title Co. as assistant to the president. and controller of Arde, Inc., Paramus, N. J. Clifton Ragsdale, Piedmont, has been Kenneth R. Wollard has been promoted promoted to manager of sales policies of ...to assistant treasurer of the Chemstrand IBM World Trade Corp. and will move to Corp. . W. T. Weissinger, North Alabama, has C. Harry Johnson, Providence, has been been named manager of general accounting elected assistant treasurer and controller at the Chrysler Corp. Huntsville (Ala.) of Collyer Insulated Wire Co., Lincoln, plant. R. I. . . . Norman Paquin has been named vice president of Weatherking Aluminum George W. Jackson, North Penn, was Products, Inc. recently promoted to director of budgets at the Electric Storage Battery Co. . . Philip Ismael Gonzalez Celiman, Puerto Rico, Santangelo has been transferred to the has been appointed assistant controller of Spring City plant of Philco Corp. as plant Gordonshire Knitting Mills, Inc. accountant. Sloam Sider, Queens, has been named J. J. Mundie, Oakland County, has moved controller of National Concrete Corp., sub- to New Orleans to become plant comp- sidiary ofU. S. Plywood. troller for Chrysler's Space Division. . George Mroz, Raritan Valley, is now W. A. Salmi is now corporate auditor with district sales manager for the New Jersey the Square D Co., Parkridge, III. . marketing area of Clarkson Press, a sub- Herbert Shilson was recently elected vice sidiary of Graphic Controls Corp. president and treasurer of the Cross Co. D. G. Streater, Sabine, was recently A. B. Foreman, Olean - Bradford, has been elected assistant secretary of Cities Service promoted to the newly created position of Refining Corp. manager of financial service at the Harrison, N. J. plant of Worthington Corp. William Bierly, Sacramento, recently transferred to the budget division of the Carl Nogle, Orange County, has been Calif. State Dept. of Finance as budget transferred to the Offner Div., Beckman analyst. Instruments, Inc., Schiller Park, III. as division controller. A. E. Anderson, St. Louis, was recently elected vice president, secretary and con- E. J. Modecki, Parkersburg- Marietta, has troller of the Illinois Terminal Railroad Co. been promoted to administrative assistant to . . . Fred R. Zaegal has been appointed the plant manager- accounting, Union Car- treasurer of Knapp- Monarch Co. bide Plastics Co. Bernie P. Menard, San Diego, has been Lloyd Kress, Peninsula -San Jose, has elected executive vice president and Wesley moved to the F. M. C. Corp., Ordnance A. Engel named secretary- treasurer of Busi- Division's new plant at South Charleston, ness Forms Printing Co. . . . Lloyd P. W. Va. as plant accountant. Johnson is now vice president of the Se- curity First National Bank. William Gand, Peoria, was recently ap- pointed chief cost accountant at the LeTour- James Cain, Sangamon Valley, recently neau- Westinghouse ' plant. . . . moved to Chicago to become controller of

19 Borg - Warner's Norge Division. . Lewis Gov't Standard Scale Works, Terre Haute, Whisnant, current chapter president, was Ind. . . . Joseph Thiel has accepted the recently elected to the board of directors of position of controller with Allith Corp., the Mississippi Valley Structural Steel Co. Danville, III.

David Bergman, , has become as- Paula Barkstedt, Washington, has been sistant controller of the Century 21 World's promoted to controller at Mills, Petticord Fair in Seattle. and Mills. . . . Harold J. Althouse was elected treasurer, Walter A Shropshire George Libera, Southeastern Minnesota, elected assistant treasurer and Oliver W. was elected cashier of the Rochester State Steinfort named assistant controller by Bank, Rochester, Minn. Peoples Drug Stores, Inc. Ray McGee, Southern West Virginia, was recently promoted to superintendent of Gordon R. McKee, Waterbury, has been costs, The Chesapeake and Ohio Railway, elected secretary- treasurer of Buell Indus- Huntington, W. Va. tries, Inc.

John Hickey, South Florida, is now in- Sheldon Perlman, Westchester, has been ternal auditor with Southern Bell. . . . appointed assistant to the financial vice George H. Smith has been named comp- president of Curtiss - Wright Corp. troller for Ryder Automobile Leasing Co. of Ryder System, Inc. Elmer Bibbee, Wheeling, was named se- cretary- treasurer of Alfred Paull Life Asso- Philip D. Fox, South Jersey, has been ciates, Inc. . . Ivor Thomas has been pro- named auditor of the Industrial Valley Bank moted to cashier at the Wheeling Dollar and Trust Co., Jenkintown, Pa. Bank. . . . Bernard E. Wells, Wheeling has Henry F. Burrows, Springfield, was re- been promoted to plant controller at the cently elected president of the Old Colony Wellsburg, Virginia plant of Hudson Pulp Envelope Co. Santo A. Cannerella has & Paper Corp. been appointed...corporate controller of the Crompton & Knowles Packaging Corp. . . Robert S. Krebs, Williamsport, past presi- Theodore J. Drewniak, past president of dent, has been elected president of E. Keeler Springfield, has been promoted to controller and Co., as well as director of The West of Wico Electric Div. of Globe- Union, Inc. Branch Bank and Trust Co. . . . M. Kowa]- chik, was recently named treasurer and Miles H. Signor, Syracuse, has been pro- comptroller of Lowry Electric Co. moted to vice president of Syracuse Foun- dries. John T. O'Malley, Worcester past presi- Fred Young, Toledo, has been appointed dent, was recently appointed controller and city auditor of Toledo. re- elected assistant treasurer of the Wain - Roy Corp., Fitchburg, Mass. J. A. McFadden, Jr., past president of Trenton, is now assistant vice president - R. D. Blank, Yo rk , has been named finance of Kearfott Div., General Precision, works comptroller, Gene Stettler is assist- Inc., Little Falls, N. J. He is a past national ant to the works comptroller and Charles vice president. Snyder is manager of costs and budgets at Allis- Chalmers. Chris V. Kemendo, Jr., Tulsa, president, has been made a partner in the CPA firm of Elmer Fox & Co. Jacques Lachance, Member -at -large (Can- ada), has been appointed plant controller of James Knotts, Wabash Valley, has been T he Singer Manufacturing Co., St. Johns, promoted to office manager at Winslow Quebec.

20 Organizational Service administrative vice president of the Fuller- ton Toastmasters Club. Delbert L. James, Dayton, has been elected president; Arthur Wittman, first Hugh Reid, Paterson, has been appointed vice president; Herbert Shaper, secretary; coordinator of professional development by John Hangen, treasurer; and Robert Runyon the New Jersey Society of CPA's. and Frank Gleason, directors, of the Dayton Philadelphia, Chapter of the Financial Executives Insti- Raymond L. Woodall, Jr., tute (formerly Controllers Institute). has been elected president of the Main Line Junior Chamber of Commerce. LeRoy H. Mitchell, Delaware, has been Earl Worley, Sacramento, has been elected elected president of the West Brandywine administrative vice president of the High - Lions Club. lines Toastmasters Club. Richard F. Pittman, Florida West Cen- Darthe Nay, St. Louis, has been elected tral, has been elected president of the Tampa a 2 -year national director of the American Rotary Club. Society of Women Accountants. . . . Arthur A. Schweighauser, chapter past Linus Beck, Louisville, has been elected president, was recently named president of president of Toastmasters - Indiana. the East Side Manufacturers Association.

George J. Wachholz, Minneapolis past Albert H. Mueller, San Diego, has been president and past national vice president, appointed chairman, Special Districts Co- has been elected director of The Financial ordinating Committee of the County Audi- Executives Institute, formerly the Controllers tor's Association of California. Institute. Louis J. Gerardis, South Florida, has been elected president of the North James A. Wilson, Newark past president Broward Kiwanis Club. and currently a one -year national director, has been elected vice president of the New Karl A. Von Den Steinen, Tuscon, has Jersey Society of CPA's. been elected secretary- treasurer of the Arizona, Section, American Institute of Leo La Rew, Orange County, was re- Mining, Metallurgical and Petroleum Engi- cently elected treasurer and Robert Kelly neers.

CHRIS V. KEMENDO, JR., chapter presi- dent, right, accepts a cert ificate of ap- praciation for the Tulsa NAA Chapter from the Indian Nations Council of the Boy Scouts of America. Tulsa acts as financial advisor to the Council on a volunteer basis. Within this past year, they have surveyed a portion of the Council's accounting system and revised certain procedures, prepared their budget, and audited a recent fund drive. The chapter also acts as counselor to Scouts who desire to obtain merit badges in bookkeeping, business, etc. The Indian Nations Council covers almost four coun- ties in Oklahoma and has eight districts. Community Service president and past national director, spoke recently before the Detroit Engineering So- ciety on "Accounting for Engineers." Also, Walter Miller, Lehigh Valley, has been appointed chairman of the Heart Fund Mr. Benson and Anthony E. Eufinger were speakers before the annual seminar of the campaign for the Allentown, Pa. area. Institute of Internal Auditors, Saginaw Ralph D. Fragola, Norwich, has been Valley Chapter. elected vice president of the Waterford Civic Association. Author Robert Lloyd, Piedmont past president, has been elected treasurer of the Greens- Carl Derrick, Columbia, has an article, boro Chamber of Commerce. "Uniform Accounting for Municipalities," published recently in the South Carolina James A. Tracy, Rockford, is now a mem- City, the official publication of the South ber of the board of directors of the Chil- Carolina Municipal Association. dren's Home of Rockford. Spencer Tucker, Queens, is the author of the book, "Successful Managerial Control Public Service by Ratio- Analysis ", published by McGraw - Hill. Robert Allyn, Buflalo, has been appointed executive secretary to the N. Y. State Board of CPA Examiners. Speakers Maurice C. Smith, New Hampshire past Herbert E. Oehler, Central Texas, spoke president, has been appointed to the New recently on "Internal Control" at the Opti- Hampshire State Board of Accountancy. mist Club in Temple, 'Texas. T. G. Lieb, Philadelphia, has been ap- Eugene Wiseman, Washington, recently pointed to the Pennsylvania State Chamber addressed the Southern Association of Col- of Commerce Committee on Government Operations and Expenditures. leges and University Business Officers at a seminar held at the Georgia Institute of Dr. David R. Dilley, New York, has an Technology in Atlanta, Georgia. His subject article "Common Sense Economics" in a was "Cost Principles as They Apply to Col- recent issue of the Journal of Business Edu- leges and Universities Performing Research cation. . . Wilmer Wright is the author of Contracts ". Mr. Wiseman is project director, a book, "Direct Standard Costs for Decision U. S. Army Audit Agency. Making and Control," published recently by McGraw -Hill. Miscellaneous Herman C. Heiser, New York, was one of the featured speakers at the 1962 Na- Thomas C. Yeaman, Richmond, received tional Conference of the National Society the Diamond Merit Award from the Na- for Business Budgeting held in May. His tional Office Management Association. He is subject was "T he Action Cycle." He is a the first member of the Richmond Chapter past president of the Philadelphia Chapter of NOMA to receive this award, which is and a past national vice president. given for service to the chapter and na- Raymond L. Woodall, Jr., Philadelphia, tional organization. was a guest panelist for an educational seminar sponsored by the National Machine R. L. Kirkman, past president of Pied- Accountants Association. mont, was recently elected president of the Greensboro Society for Crippled Children Harold M. Benson, Saginaw Valley past and Adults, Inc.

22 Culture Corner

INCOMETAX I i►J(r trlb

0 fl

Puerto Rico's "Tropical Topics"

WEBSTER REVISITED

EXECUTIVE — A man who can make a FINANCIAL GENIUS — A man who can decision and stick to it —no matter how earn money faster than his family can wrong he is.... Charlotte Newsletter. spend it. . . . Balance Sheet, Dayton Chapter. PESSIMIST — An optimist with experi- ence. ... The Nacorn, Oakland East Bay Chapter. CROSSWORD ANSWER GOLD DIGGER —The kind of a girl who 'ni`oTE pi doesn't care for a man's company — un- less he owns it. ... Delaware Newsletter. EMBARRASSMENT —Watching the boss do something you said couldn't be done. . . . Birmingham Newsletter. SYNONYM —The word you use when you can't spell the other one. . . . Toledo Newsletter. 'A� C C PUNT $ OLD AGE — When your son swipes your Playboy magazine and you don't care. s o ,sU M . . . Kalamazoo Newsletter. / 1PK ;Y NONCHALANCE—The ability to look V F W_ like an owl when you have behaved like 96 an ass. . . . Longview -East Texas News- letter. RACE HORSE —An animal who can take Bo q U � T several thousand people for a ride at the same time. . . . The Salt Shaker, Utah � A SM A Chapter. F N P

23 Gone To Chicago'. Flying Freddie and his family (they're inside the plane) always do things at the last minute. What about you? Have you registered for NAA's 43rd Annual Conference, being held at the Conrad Hilton Hotel on June 24 -27? It's getting late, but there's still space available. Do it now!

eY ?

THERE? ARRRIVED!