expenses, with the total receipts and expenses of parks and similar operations. Others will prefer using the Interstate Commerce plan of carrying the net result into income account, as an addition or deduction. In any event the course to be pursued will be influenced by the local conditions or the decision of authorities having jurisdiction over the railway company's accounting.

In order that the park business, when conducted entirely by the railway company, may be handled in an intelligent manner it is essential that a detail account be kept of all receipts and disbursements. While it is not expected that each attraction shall show a profit or even be self-sustaining, the manager who is provided with a clear statement of the financial condition of the park, at frequent intervals, is enabled to apply remedies that will result in a much better showing at the end of the park

season.

The first season of the park's operation is usually a trying one. The management has no precedent to guide it in that particular case, and the use of comparative reports is not possible, for the reason that there are no figures with which to make comparison. A comparison of the receipts with the expenses of each class of attraction must suffice-if additional statements showing the various maintenance costs are furnished, the situation is well known at all times. The maintenance of the property during the closed season is an integral part of the park expense, and should be taken into account when considering net results.

A Pennsylvania company operating several electric railway properties has used a system of park accounting which is comprehensive and furnishes sufficient detail to satisfy the demands of the management in most cases. The general park account is separated into many subsidiary accounts, which may be carried in a Park Ledger, the controlling account only appearing in the general ledger.

An income account is opened for each revenue-producing portion of the park, and to this account is credited the gross amount received by the railway company as its revenue. These accounts comprise the features operated exclusively by the company, as well as the privileges let to outsiders upon various bases.

The expense accounts included in this plan of accounting are twenty-two in number, and are designated as follows:

Maintenance.

Maintenance of Buildings and Grounds.

Maintenance of Landscape Gardening.

Maintenance of Furniture and Fixtures.

Maintenance of Park Furnishings.

Maintenance of Park Equipment and Tools.

Maintenance of Electric Plant.

Operation.

Purchased Power.

Policing and Cleaning of Grounds.

Band Concerts.

Special Attractions.

Wages of Miscellaneous Amusement Employes.
Miscellaneous Amusement Expenses.

Miscellaneous Park Expenses.

Theatre Supplies and Expenses.
Restaurant Supplies and Expenses.
Salaries of Managers and Clerks.
General Office Expenses.

Stable Expenses.

Advertising and Attractions.
Damages.

Rent of Land and Buildings.
Insurance.

Some companies will subdivide these accounts quite extensively if the park business is of sufficient importance to warrant it. For example, the accounts for miscellaneous park and amusement expenses may be split up so that the expense directly incurred by the operation of a particular attraction may be ascertained without having to analyze the larger accounts. Of course, the indirect expense must be prorated over all the attractions in order to know the entire cost of operating each feature.

Some of the park equipment is of such a character that it must be practically renewed each season. The cost of these can hardly be considered a part of the construction cost, as they are not in the nature of permanent assets. Their renewal is

considered a part of the up-keep of the property, and included in the cost of maintenance.

The acquisition of a piece of real estate and its conversion into a modern fully-equipped amusement park involve the expenditure of much time and money. The Pennsylvania company alluded to has used the following accounts to include the cost of purchasing and equipping park properties. These are considered a part of the capital accounts and may be merged into the general construction and equipment accounts of the railway, if the railway owns the property.

The construction and equipment accounts have the following titles:

Organization.

Engineering and Superintendence.

Real Estate.

Buildings and Grounds.

Landscape Gardening.

Furniture and Fixtures.

Park Furnishings.

Park Equipment and Tools.

Electric Plant.

Interest and Discount.

Miscellaneous.

CHAPTER XVII.

VOUCHER DISBURSEMENTS.

One of the chief duties of railway auditors is the careful oversight of disbursements, and the accounting therefor.

The examination or audit is intended to act as a preventive of erroneous payments and is supposed to take place before the money is actually disbursed. There are occasional exceptions to the general rule, but in the majority of cases, the certification of the auditor is necessary before the money can be paid out. Frequently, also, the approval of one or more cther company officials is necessary, and the by-laws governing the corporation's acts may designate what officials are given this power of approval.

In order that the certification and approval of the proper officials may be shown and that the accounts to be paid may be handled in a uniform manner, there has been brought into use a system of disbursing and accounting which is known in railway parlance as "the voucher system."

The Century dictionary defines a voucher as a "book, paper, document or stamp which serves to prove the truth of accounts, . . . a receipt or other written evidence of the payment of money."

As is to be expected, there are many forms of the voucher in use. Some railways use a voucher that is certified and approved by the company officials, and when it reaches the treasurer for payment, he draws an ordinary bank check in favor of the payee. The voucher and check are then sent to the payee. In order that the voucher will be properly signed and returned it is customary to enclose a letter or printed slip requesting that this be done. This voucher comes within the definition given above and there are, no doubt, cases wherein it is the most practicable solution of the problem. However, many railways have used for years a “voucher" which is a combination of voucher and check. In the following description it will be noted that this form has a number of advantages.