University of Mississippi eGrove American Institute of Certified Public Accountants Association Sections, Divisions, Boards, Teams (AICPA) Historical Collection 1954 American Association of Public Accountants: its first twenty years, 1886-1906. (Reorganized in 1916 as American Institute of Accountants) Norman E. Webster Follow this and additional works at: https://egrove.olemiss.edu/aicpa_assoc Part of the Accounting Commons, and the Taxation Commons Recommended Citation Webster, Norman E., "American Association of Public Accountants: its first twenty years, 1886-1906. (Reorganized in 1916 as American Institute of Accountants)" (1954). Association Sections, Divisions, Boards, Teams. 173. https://egrove.olemiss.edu/aicpa_assoc/173 This Book is brought to you for free and open access by the American Institute of Certified Public Accountants (AICPA) Historical Collection at eGrove. It has been accepted for inclusion in Association Sections, Divisions, Boards, Teams by an authorized administrator of eGrove. For more information, please contact [email protected]. THE AMERICAN ASSOCIATION OF PUBLIC ACCOUNTANTS ITS FIRST TWENTY YEARS 1886 - 1906 (Reorganized in 1916 as American Institute of Accountants) Compiled by Norman E. Webster Chairman Committee on History (Incorporated under the Laws and Statutes of the State of New York) AMERICAN INSTITUTE OF ACCOUNTANTS 270 Madison Avenue, New York 1954 Copyright, 1954 by American Institute of Accountants FOREWORD Mankind has always had a healthy curiosity about its past. Without knowing how we got where we are, it is difficult to avoid repetition of earlier mistakes or to plan intelligently for the future. The past is a guide to the future. History is useful not only to satisfy our curiosity, but to help us adjust to the present environment. This history of the first twenty years of the earliest national organization of professional public accountants in the United States should be of interest to everyone concerned with the adaptation of the accounting profession to its social environment. It shows that the organized profession of public account­ ing in the United States has attained a respectable age. In fact the American Association of Public Accountants was organized only nine years later than the American Bar Association. A book of this kind also serves to remind us how much we all owe to the pioneers who started from scratch. Without the advantage of experience and precedent they began the job of building a new profession. How successful they were we now know. This history shows us the beginning of many things that some of us may now take for granted. It may also indicate a trend of events and policies which may be projected into the future. For many reasons a reading of these pages should be rewarding. I wish to acknowledge the gratitude of the American Institute of Accountants to those responsible for the production of this work, particularly Norman Webster who carried most of the burden. Arthur B. Foye President December, 1953 New York, N.Y. iii CONTENTS Page PART I - CONDITIONS BEFORE 1886 1. Introduction.......................................................................................... 1 2. Available R e c o rd s ............................................................................. 2 3. Business C onditions......................................................................... 4 4. Public Accountants............................................................................. 7 5. Early Accounting Societies................................................................ 9 6. Chartered Accountants Institute - Proposed.................................. 18 PART II - CLASSIFICATION OF ACTIVITIES BY PERIODS 7. General Outline of First Twenty Y e a r s ........................................ 21 8. Promotion and O rganization............................................................. 24 9. Reorganization and Education......................................................... 34 10. Legislation for the Profession......................................................... 39 11. Living with the CPA Law ................................................................ 41 12. Reorganization and M erger................................................................ 49 13. Officers and T r u s te e s ....................................................................... 52 14. N ationalization.................................................................................... 54 PART III - ORGANIC STRUCTURE - ADMINISTRATION 15. Form of O rg an izatio n ....................................................................... 57 16. Constitution and By-Law s.................................................. 61 17. Membership Classification ............................................................. 64 18. Membership E num eration................................................................ 71 19. Membership Background ................................................................ 80 20. Headquarters, Offices, Secretaries............................................... 84 21. Finances, Treasurers, A uditors...................................................... 90 PART IV - PUBLICITY, LITERATURE, EDUCATION 22. Advertising Expense ....................................................................... 97 23. Association Publicity by Booklets, etc............................................. 99 24. Association Advertising in P e rio d ic a ls ......................................... 102 25. Periodicals Used for Publicity......................................................... 108 26. Members’ Publicity E fforts................................................................ 120 27. Touting by American A ccountants.................................................. 127 28. Advertising in Periodicals by A cco u n tan ts.................................. 130 29. Ethics and Discipline ...................................................................... 141 30. Technical M eetings............................................................................. 145 31. Libraries and L iterature................................................................... 152 32. Association Publications................................................................... 161 33. Education for Accountancy................................................................ 163 v Page 34. College of Accounts - Proposed.............................................................166 35. New York School of Accounts . ......................................................... ....177 36. School, Trustees, Faculty, Students.................................................. ....192 37. Later Provisions for Education.............................................................202 PART V - LAWS PROPOSED, ENACTED, EXECUTED 38. Legislation G e n e ra l.................................................................................207 39. Origin of F irst CPA L a w ................................................................... ....214 40. The CPA Law - 1895 F a ilu re ............................................................ ....218 41. The CPA Law - 1895 S uccess.............................. .................................229 42. CPA - How and Why This Title ......................................................... ....237 43. Examiners - Appointment and A ffiliations.........................................241 44. The Waiver P rovision..............................................................................251 45. Examinations, Candidates.......................................................................259 46. Relations with Regents - Policing.........................................................265 PART VI - COOPERATION, COMPETITION, CONSOLIDATION 47. Contemporary State S ocieties............................................................ ....271 48. Contemporary National S o cie ties..........................................................276 49. The Federation...........................................................................................291 50. F irst Congress of A ccountants................. ....................................... ....297 51. Merger of F ed eratio n ..............................................................................308 52. M iscellany..................................................................................................318 PART VII - MEMBERS 1886-1904 53. Biographical Sketches..............................................................................325 54. Fellows, 2 1 4 ........................................................................................ 327 55. Associates, 52 .................................................. .................................... ....389 ACKNOWLEDGMENTS ................................................................................ ....401 . vi Part I CONDITIONS BEFORE 1886 CHAPTER 1 INTRODUCTION This organization under its two names of American Association of Public Accountants and American Institute of Accountants has had a continuous exist­ ence since 1886. From one viewpoint the latter name, under which it has op­ erated since 1916, may indicate a distinct organization. But all members of the Association were eligible for membership in the Institute and most accept­ ed it so there was almost no change in the personnel. And the continuity was recognized and emphasized in 1937 when the present Institute celetrated the 50th Anniversary of the incorporation of the early Association.