any member of the institute will be able to speak on any given subject with the experience of the whole profession at his back. It is understood that an effort is to be made at once to obtain the amounts necessary to bring the fund to $150,000 or pledges of annual payments equalling 6% interest on that sum for the duration of the war. No doubt the full amount will be raised and in time to come the total will almost surely reach a far greater amount than has yet been thought of; but the finest thing about the whole proposition is that immediate success is assured and the profession is to have with the least possible delay the benefits and assistance which will issue from the bureau of information and advice and the library and statistical department. Income Tax Department The Income Tax Department is omitted from this issue of THE JOURNAL OF ACCOUNTANCY on account of the uncertainty as to the outcome of the finance bill now before congress, and the consequent impracticability of criticism or discussion. In the November issue we hope to give a full summary of the measure which by that time will have become law. American Institute of Accountants Annual Meeting The annual meeting of the American Institute of Accountants was called to order at ten A. M. Tuesday, September 18, 1917, W. Sanders Davies, president, presiding. The president's report* was read and approved. The reports of the council and the executive committee were read and approved. The following amendment to the constitution was unanimously adopted: Constitution, article II, section 2 (c) to be amended to read as follows: "Accountants who shall present evidence of preliminary education satisfactory to the board of examiners, who shall have been in practice on their own account or in the employ of a practising public accountant for not less than five years immediately preceding the date of their application, who shall be recommended by the board of examiners after examination and elected by the council." The following amendment to the by-laws was unanimously adopted: "The executive committee shall be empowered with all functions of the council except election of officers and members, the right to review the rules and regulations of the board of examiners, discipline of members, filling a vacancy in the executive committee and the adoption or alteration of a budget." After discussion of the question of remitting the dues of members engaged in military service, it was resolved that the council should be directed to provide from the funds of the institute for the payment of dues of members or associates in active military or naval service of the United States or its allies for the duration of the present war. It was resolved that the committee on constitution and by-laws should be requested to prepare an amendment to article IV of the by-laws to the following effect: "No dues shall be payable by members or associates of the institute while they are engaged in the active military or naval services of the United States or its allies during the time of war." At the request of the chairman, the chairman of the endowment committee, George O. May, explained in some detail the plan for a library and statistical bureau and information service. Mr. May was followed by R. H. Montgomery, chairman of the committee on collection, who discussed the plan for a campaign throughout the country to obtain the necessary $150,000. *The report of the president appears on page 241 of this issue. E. W. Sells, member of the committee on endowment, then took the floor and asked for subscriptions. In response to this request a total sum of approximately $86,000 was pledged and there were also promises of annual contributions on an income basis. It was resolved that all members present should be considered members of the committee on collection and the secretary was directed to notify members registered that they had been so appointed. At the suggestion of George L. Vannais there was a popular subscription to the fund in memory of Ralph Day Webb. Subscriptions were limited to $5.00 a member. The total subscribed was $320.00, but further subscriptions are expected from members not in attendance at the meeting. The chairman reported to the meeting that two members had been tried by the council on charges of unprofessional conduct and had been suspended for thirty days. The report of the treasurer was read for information. A letter from Herbert Hoover, food administrator, addressed to the executive committee, was read for the information of members. The letter called for the assistance of the institute in investigations and examinations on behalf of the food administration. The following resolution was proposed by Edward E. Gore and unanimously adopted: "RESOLVED, That the American Institute of Accountants favors the enactment by the United States congress of an act providing for the incorporation of companies engaged in inter-state commerce, and of trade, professional and educational associations whose activities are national in their scope." A paper entitled Comparative Value of Personal Reputation and Conferred Degrees* was read by Carl H. Nau. The paper was followed by discussion. A paper entitled Receivership Accounting was read by Herbert C. Freeman. Votes of thanks to the authors of both papers were unanimously adopted. The second day's session was called to order at ten A. M., Wednesday, September 19th. The president called upon Harvey S. Chase, vice-president, to take the chair. The chairman pro tem. announced that the next business would be the election of officers. Hamilton S. Corwin nominated W. Sanders Davies to succeed himself as president. Upon motion, the nominations were closed and the secretary was instructed to cast one ballot for W. Sanders Davies as president. See page 247 of this issue. † See page 254 of this issue. Upon resuming the chair Mr. Davies thanked the members for their expression of confidence and asked for the assistance of all members throughout the coming year. Carl H. Nau, retiring vice-president, expressed the feeling that an unwritten law should be established and a precedent set at this time to the effect that a vice-president should be elected for a term of one year and not be considered as eligible for re-election. In accordance therewith he nominated as vice-presidents for the ensuing year George O. May and Waldron H. Rand. The motion was seconded by Harvey S. Chase, the other retiring vicepresident, who supported the views expressed by Mr. Nau. Upon motion, the nominations were closed, and the secretary was instructed to cast one ballot for George O. May and Waldron H. Rand as vice-presidents of the American Institute of Accountants. W. F. Weiss nominated Adam A. Ross to succeed himself as treasurer. Upon motion, the secretary was instructed to cast one ballot for the election of Adam A. Ross as treasurer. The next business was the election of seven members of the institute to fill five-year terms on the council in place of Ralph Day Webb, deceased, and the following retiring members of the council: J. S. M. Goodloe, Elmer L. Hatter, R. C. Lloyd, J. Edward Masters, Robert H. Montgomery, and W. Ernest Seatree. The following were nominated: J. S. M. Goodloe, Elmer L. Hatter, W. Ernest Seatree. A ballot was taken resulting as follows: R. H. Montgomery, 116 votes; C. H. Nau, 114 votes; J. E. Masters, 113 votes; J. S. M. Goodloe, 111 votes; W. Ernest Seatree, 102 votes; Elmer L. Hatter, 94 votes; J. E. Matteson, 80 votes; Charles Neville, 58 votes; Walter Mucklow, 55 votes. The chair declared Messrs. Montgomery, Nau, Masters, Goodloe, Seatree, Hatter and Matteson elected. A vacancy occurring in the two-year term of the council following the election of Waldron H. Rand as vice-president, nominations were called for. Charles Neville of Georgia and F. A. Tilton of Michigan were nominated. The ballot resulted as follows: Charles Neville, 88 votes. F. A. Tilton, 39 votes. The chair declared Charles Neville elected. John R. Lynn of Pennsylvania and Charles O. Hall of Maryland were nominated as auditors for the ensuing year. Upon motion, the nominations were closed and the secretary was instructed to cast one ballot for John R. Lynn and Charles O. Hall as auditors. During the counting of the ballots R. H. Montgomery, chairman of the committee on federal legislation, discussed the memorandum on balancesheet audits which had been adopted by the federal reserve board and widely circulated. Clinton H. Scovell objected to the pamphlet on the ground that it was unfavorable to the inclusion of interest in cost of production. tion. Herbert G. Stockwell, J. Lee Nicholson and others discussed the ques Upon motion of J. Lee Nicholson, the president was authorized to appoint a committee of five from among the members of the institute to gather statistics and facts and opinions on the treatment of interest and to report at the next meeting. J. Lee Nicholson gave a brief summary of the work being done by the department of commerce and the federal trade commission in the investigation of cost of production and requested members and associates who were willing to do so to volunteer to assist in the work. Upon resumption of business in the afternoon there was further discussion of the suggestion that accountants should serve the department of commerce or the federal trade commission at a nominal compensation. The chair stated that in a general way it was his opinion that accountants undertaking this class of work should be engaged through the committee on national defense in Washington. The opinion was expressed by several members that the rates mentioned by Mr. Nicholson were lower than accountants could accept for any considerable volume of work. It was resolved that a committee on nominations consisting of five members should be appointed by the chair to prepare and present for consideration at the annual meeting of September, 1918, nominations for officers and members of the council. The report of the auditors was read and placed on file. A paper entitled Practical Application of Theoretical Knowledge* was read by Seymour Walton. This was followed by a paper entitled Contact of Commercial Law and Accounting, by B. D. Kribben. On motion of W. Ernest Seatree, a vote of thanks to the authors of papers and to the annual meeting committee for its labors was unanimously adopted. The meeting adjourned. *See page 276 of this issue. † See page 283 of this issue. |