To the Members of the American Railway Engineering Association: Your Committee on Records and Accounts respectfully submits herewith its report: The Board of Direction assigned the following work to your Committee for the current year: (1) Make a comprehensive study of the forms in the Manual, which were adopted a number of years ago, and bring forms up to date. (2) Continue the study of the economical management of store supplies. (3) Recommend feasible and useful subdivisions of Interstate Commerce Commission Classification, Account No. 6, with a view to securing uniformity of labor costs. The Sub-Committees were appointed by the Chairman after consultation with the Vice-Chairman, as follows: Sub-Committee No. 1-Guy Scott, Henry Lehn, J. H. Milburn and Orlando K. Morgan. Sub-Committee No. 2- —J. M. Brown, G. J. Graves, E. E. Hanna, G. D. Hill and Edward Gray. Sub-Committee No. 3-Frank Ringer, W. A. Christian, Walt. Dennis and C. W. Pifer. Two meetings were held during the year, one at St. Louis on December 17, 1912, attended by Messrs. Byers, Brown, Hill and Pfeifer, and the other at the offices of the Association in Chicago, January 17, 1913, attended by Messrs. Byers, Brown, Christian, Dennis, Graves, Hill and Pfeifer. After a conference with the Vice-Chairman of the Committee, and the approval of the Board of Direction, the Chairman on behalf of the Committee invited the Railway Storekeepers' Association to appoint a representative to co-operate with the Committee in the discussion of Subject No. 2. Mr. E. J. McVeigh, Storekeeper, Grand Trunk Railway, Ottawa, Can., Chairman of their Committee on Recommended Practice, was elected. He attended the Committee meetings at St. Louis and Chicago, and gave the Committee most valuable aid in reaching its conclusions. CONCLUSIONS. SUBJECT NO. I. Some of the forms, particularly those used in connection with the accounts, such as foremen's reports of labor and material consumed, might be changed in some particulars, but it is doubtful if such changes would bring about their more general use by the railroads, as little, if anything, would be gained by suggesting minor changes in these forms. It is the opinion of the Committee that no changes be made at the present time in the forms appearing in the Manual. It is suggested that since the selection of the proper forms for time books, foremen's material reports, distribution sheets and authorizations of expenditures is a matter in which the Accounting Department is as much interested as the Maintenance of Way Department, for the reason that these forms and reports are the foundation of the entire maintenance of way accounting structure, that it would be advisable for this Association to join with the American Railway Accounting Officers' Association in the development of a set of forms, to be recommended by each association, which would be generally adopted by railways. SUBJECT NO. 2. The Committee carefully discussed the report made last year with Mr. McVeigh, the representative sent by the Storekeepers' Association, and we believe that the conclusions which we have reached will meet with the approval of Mr. McVeigh, and that there is a strong probability that they will be approved by the Storekeepers' Association. Discussions were confined to the conclusions approved by the Association at the annual meeting in 1912, which were under the following headings: (A) Standardization. (B) Classification of Material. (C) Stock Account. (D) Distribution. (E) Organization. (A) Standardization.-No change is recommended for this heading. (B) Classification of Material.-The Committee recommends that the details of classifications should conform to those adopted by the Railway Storekeepers' Association. (C) Stock Account.-The conclusion reached last year is fundamental. The detailed methods of keeping the accounts may be varied to fit the individual condition. Stock accounts can be kept, first, by ledger account; second, by card system, and third, by personal inspection and estimation. (D) Distribution.--No change is recommended for this heading. (E) Organization.—The essential elements are as follows: (1) Location.-The store should be located as closely as possible to the point of greatest consumption so that the minimum force will be required, and that the delay to material between the store and its destination may be reduced to a minimum. Usually this is at a point where equipment is maintained. (2) Force. The force required is dependent almost entirely on the character and volume of material issued and on local conditions. As the prompt and efficient handling of material and tools has a vital effect on the economical operation and maintenance of the railway, the force in the storeroom should be large enough to bring about this result. (3) Position in Organization.-The consumption of supplies being greatest in maintenance of way and equipment, the Storekeeper should be closely associated with the heads of these departments. It is the opinion of the Committee that this can best be accomplished by having the Storekeeper, Engineer Maintenance of Way and the Master Mechanic report to the same officer. In a divisional organization this would place the Division Storekeeper under the Superintendent and the General Storekeeper under the General Manager or Vice-President in charge of operation. (4) Mechanical Equipment.-Cost of unloading, storing and loading material depends solely upon the volume of business done by each store, and such appliances as will reduce this cost to a minimum are recommended. (5) Plan.-A typical layout of a store is herewith presented, which can be expanded or reduced as the situation demands. SUBJECT NO. 3. The Interstate Commerce Commission, in their Classification of Operating Expenses, which became effective July 1, 1907, included in the maintenance of way accounts primary Account No. 6-Roadway and Track. This account includes about one-third of the total charges for material and labor in the maintenance of way and structures accounts. This account includes practically all of the labor performed by section and extra gangs chargeable to the maintenance of way and structures operating expenses, and it seems desirable to provide subdivisions of this primary account in order to analyze operating expenses and assist in securing uniformity of labor costs. A brief outline of the reasons for recommending the proposed subaccounts is as follows: Sub-Account A-Track Maintenance: In Under this caption is included all labor necessary to maintain good line and surface of track, except for the application of material. other words, if the material and drainage conditions are good, but the track is in poor line and surface, the labor necessary to place the track in good condition will be charged to this sub-account. Also, if it is nec essary to temporarily reduce expenses, the available force should be used on line and surface work so far as possible. Sub-Account B-Applying Track Materials: Applying Track Materials is subdivided into (B-4) Applying Other Track Material. These sub-accounts will furnish as much detail as is practicable for convenience in comparing labor costs. Sub-Account C-Cutting Weeds, and General Cleaning: This sub-account includes work which is less important than some of the other items, and the amount expended is largely dependent upon keeping the property in presentable condition rather than for reasons affecting safety or economy. Sub-Account D-Ditching and Bank Widening: This sub-account includes the most important element in providing good track. Frequently the material removed from cuts is used in widening embankments and, therefore, ditching and bank widening are logically included in the same sub-account. Sub-Account E-Changing Alinement and Grades: Under this caption is included the operating expenses resulting from abondoning the present alinement on account of reduction of grades cr curvature, and it is necessary to separate this from the other expenses which more directly affect the economical maintenance of the property. Sub-Account F-Flood Damage: This sub-account includes the cost of repairing damage to the roadbed and track caused by unusual conditions, such as cloudbursts, floods, etc. It is necessary to separate this class of expenditures from the ordi nary maintenance work in order that the latter may truly reflect the average expenses in maintaining the property. This sub-account also furnishes the basis for investigations to determine the amount which may be profitably expended to eliminate future damage. Sub-Account G-Bank Protection: Under this caption is included expenses necessary to protect the roadbed and track from slides, washouts and other unusual damage to the property. Sub-Account H-Filling: This sub-account provides for the expense of filling bridges. Sub-Account I-Other Care of Roadway and Track: This sub-account is intended to include the cost of trackwalkers, watchmen and other expenses not specifically provided for in the other sub-accounts. It is the opinion of your Committee that the subdivisions of the Interstate Commerce Commission Classification, Account No. 6, of Operating Expenses, will be of assistance in securing uniformity of labor costs, but in order to obtain the greatest efficiency and most economical results additional information must be obtained and action taken. Some of the most important elements in securing uniformity of labor costs and efficiency in handling work are as follows: (1) Adoption of proper method for doing the various kinds of work under usual conditions. Efficiency in the various kinds of work performed in the Maintenance of Way Department has received very little study up to the present time, and it is safe to say that practically the same methods are being followed to-day that have been in use for a great many years. As an illustration, there are probably as many methods employed by section foremen in putting in ties under the same conditions as there are foremen doing this work, and by making a care. ful study of the elements entering into each operation the best method employed by each foreman may be combined to produce an approved practice for the various items of work under the most usual conditions. (2) Economical distribution of material so as to reduce the amount of labor necessary in applying. (3) The selection of proper tools and their maintenance in good condition. (4) Organization and supervision. (5) The selection of the proper season of the year for performing the various kinds of work. Respectfully submitted, COMMITTEE ON RECORDS AND ACCOUNTS. |