NAABULLETIN

SECTION 2 OF 0 TWO SECTIONS

MARCH, 1962

NATIONAL ASSOCIATIONOF ACCOUNTANTS

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NAA BULLETIN

In This Issue

Conference News 3

Five Accounting Associations 7

Chapter Section Meetings 8

J. Hugh Jackson, 1891 -1962 10

NAA Around the World 12

y ? ? ? ? 15

The NAA Story — Part 4 16

Members in the News 19

ON THE COVER — The international aspects of NAA are highlightedin this month's issue of Section 2. Photographed in Bloomingdale's

in New York City, the cover shows a statue from Taiwan, a globe

from France, Japanese translations of NAA Research Reports, a

toy Llama from Peru perched on the Bulletin Holders, and a Ger-

man beer stein — all on a print from India. Stories about the Asso-

ciation's foreign members -at -large and the translations of NAA

publications into other languages are on pages twelve and thirteen.

This Bulletin is published monthly by the National Association of Accountants, 505 ParkAve., New York 22, N. Y. Subscription Price, $10 per year for members only. Second

class postage paid at New York, N. Y.

F E R E N C E N E W S

T o those who attended the SeminarConference in New York last monththe return on investment in new ideasand refinements of procedures for de-termining Return on Capital wasgreater than had been anticipated.General Chairman Julius Underwoodand his program committee are to becomplimented on a well executed pro-gram. Comments from participantswere most enthusiastic.

Association members in the northeastern section of the United Statesare reminded of the New England Re-gional Conference being held at theSchine Inn, Chicopee, Mass. on March30 -31, 1962. The complete programfor this conference was included in lastmonth's Conference News.

Cleveland Subject ConferencePlanning for Profits

Plan now to attend this conferenceon April 26 -27, and you'll profit froma study of the practices and proceduresused by business today in planning forprofits. Harold T. Rappe, GeneralChairman of the conference, and hisprogram committee have worked hardto obtain outstanding speakers for the

program. Here's what they've plannedfor you:

On Thursday morning April 26, twospeakers:

1. Robert W. Haigh, Vice - President,Planning, Standard Oil Company (Ohio),Cleveland, will speak on "Long -Term ProfitGoals —Plans for Meeting Them." He willdiscuss ways and means you can blueprintlong -range plans and control their effective-ness.

2. Speaker to be announced. This speakerwill discuss Product Development —Re-search and Product Engineering to showhow the development of new products andthe modification of o ld products affects fu-ture profit planning.

WARREN W. BYRNE,New York, chairman ofthe Seminar Confer-ence on "Planning andControlling Cash andInventories" being holdat the Barbizon -PlazaHotel, New York, onMay 10 -11, 1%2.

After lunch Mr. Robert C. Perryof the Corning Glass Works at Corn-ing, New York will talk about "De-termining the Profit Contribution Madeby New Products and Projects." Theforecasting and measuring of new

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products and projects costs is essentialif profit plans are to be met.

The second afternoon speaker, JohnHudig, with Ernst and Ernst of Cleve-land will discuss "Marketing and Pric-ing Considerations in Profit Planning."Mr. Hudig has helped solve these kindsof problems many times for businessesthrough his work as a managementservice specialist in a public account-ing firm.

On Friday morning, April 27, Mr.Herman C. Heiser, Lybrand, RossBros. and Montgomery, New York,will discuss "Assembling and Apprais-ing Short-Term Profit Plans." The pur-pose of this talk is to help you improvethese functions in your business.

On Friday afternoon a case study —"One Company's Planning for ProfitProgram" —will be presented by Mr.William W. Richardson, Controller,Mobil Oil Division of Socony MobilOil Company, Inc. of New York. Thiscase study will be followed by a ques-tion and answer period which will giveyou the opportunity to hear discussed

by a panel of the speakers the ques-tions which come to your mind.

New York SeminarPlanning and Controlling Cash

and Inventories

The increasing need by managementfor this kind of control has emphasizedthe development of means and meth-ods of planning cash and inventory re-quirements and levels. Reduction ofcash and inventory levels, while stillmaintaining operating and sales needs,means an increase in return on capital.This seminar, being held May 10 -11,1962, has been planned to bring youup to date on new developments in thisarea. Warren W. Byrne, Chairman, willannounce a more complete program ina later issue of this section of theBulletin.

43rd Annual ConferenceChicago, Illinois

On Sunday, June 24, 1962 the 43rdAnnual Conference will open with a

CLEVELAND MUSEUM OF ART —one of the world's most famous art museums.

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DEERFIELD VILLAGE, open through-out the year, is considered one ofthe best major restorations of earlyAmericana. Pictured here is the Dwight-Barnard house, just one of ten re-stored homes which line the mile -longmain street of the village. Deerfiedis a short drive from Chicopee, Mass.—site of the New England RegionalConference being held at the SchineInn on March 30 -31.

reception providing an opportunity forall those attending to personally meetNational Officers of NAA. On thefollowing days, and continuing throughWednesday, June 27, an exceptionaltechnical and social program will beoffered. John D. Harrington, Indian-apolis, is program chairman for theconference. More detailed informationwill be sent you in personalized mail-ings but in the meantime we suggestyou read carefully the fine technicalprogram outlined here.

Kenneth R. Rickey, Peninsula -SanJose Chapter, is session chairmanfor Monday morning, June 25. Thespeaker will be Leonard Spacek, Man-aging Partner, of Arthur Andersen &Co., Chicago, who will discuss the "In-terrelation Between Internal and Ex-ternal Profit Reporting." Mr. Spacek,a nationally known public accountant,has given a great deal of thought tothis subject and has some thought -provoking ideas about what can bedone to reconcile external and internalreporting problems.

Because of the importance of this

subject the whole morning session willbe devoted to his presentation and adiscussion period. Don't miss this ses-sion! It will be a real highlight in yourexperience at conferences!

Donald W. Blacka, Pittsburgh Chap-ter, is session chairman for Tuesdaymorning, June 26, and here is anothertreat for you. Mr. C. W. Doyle of Gen-eral Dynamics Corp., Fort Worth, Texaswill show you examples of how "ValueAnalysis and Control —A New Tech-nique for Profit Improvement" works.He will illustrate its wide range ofapplication and ask each of you in theaudience to actually value analyze areal product at small table groups. Thisaudience participation program will besomething no one present will forget.Be sure you are registered early so thatyou can participate in this stimulatingsession.

The next issues of this section of theBulletin will discuss the other sessionsof the program and tell you about thespeakers in detail but in the meantimehere is a skeleton outline of the ses-sions and topics:

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Monday, P.M., June 25

SESSION CHAIRMAN: R. Lee Brummet, AnnArbor Chapter

FOUR CONCURRENT SESSIONS

1. Accounting Problems of Foreign Opera -ations

An opportunity for those concernedwith accounting for foreign operations todiscuss their mutual problems.

2. Improving Capital PlanningConsideration of capital planning

techniques with emphasis on the dis-counted cash flow method.

3. Accounting Problems of Mergers andConsolidations

Appraisal of proposals, financial ac-counting considerations involved andconsideration of the merging of ac-counts and organizations.

4. The Accountant's Contribution to Stud-ies of Locating of Facilities

An opportunity for discussion of whatthe accountant has done and can do toassist in decisions relating to the loca-tion of production or marketing facili-ties.

speaker will discuss both formal andcontinuing education with specific ref-erence to the needs of the managementaccountant.

2. Avenues for Continuing Development ofthe Management Accountant

Besides formal education and experi-ence on the job what other avenues existfor the continued development of ac-countants in industry? The speaker willreview and assess in terms of his com-pany's experience the opportunities whichexist for the growth and development ofmanagement accountants.

Wednesday, P.M., June 27

SESSION CHAIRMAN: Clifford S. Farmer,Mass.- Norfolk County Chapter

TWO TALKS WITH DISCUSSION

1. The Integration of Data Processing andIts Impact on the Accountant

Data processing chores, formerlyspread over several departments, are be-ing integrated. The speaker will explorethe effect which this evolutionary changeis likely to have on the scope and con-tent of the accounting function.

Wednesday, A.M., June 27 2. Profit Planning in Depth —A Case StudyWith modern technique of analysis,

SESSION CHAIRMAN: Paul L. Noble, Parkers- forecasting and planning, profits can andburg- Marietta Chapter should be planned in depth. The speaker

will describe the practices followed inTwo TALKS WITH DISCUSSION his company.

1. Education for the Management Account -ant More on this later! And more of you

Education is a life -long process. The on June 24 in Chicago!

One Management's PhilosophyGrowth, as such, has been over - emphasized in recent years. It is not the size

of the company in amou nt , but i ts strength and vita lity which counts. Growthis not desirable if i t means sacrifice for the company's business health. In gen-eral, the company i s healthier when i t has a certa in dol lar volume of businesswith a 10 per cent return on investments aft er taxes, instead of twice that dol-lar volume of business with only 5 or 6 per cent return.

More important than this is the fact that manageria l ta lent is l imited and thereturn on this asset is important. Dying businesses often require a higherdegree of managerial talents than one in its healthy period of growth. Alertmanagement a ims to pour new products into the business "bar rel," bu t a t thesame time, to drain off things that have become marginal and could be a drainon management. With such a program, size and growth will tak e care of them-selves. As quoted in The She Crab Scoop, Charleston Chapter Newsletter

Five Accounting Associations Meet

Affendlog the meeting of the Five Accounting Associations were (clockwise front left foreground) John L.Carey, executive director, AICPA; John W. Queenon, president, AICPA; Raymond C. Dein, president, AAA;Arthur L. Boschen, president, CIA; Paul Haase, managing director, CIA; Bradford Cadmus, managing director,IIA; Cedric C. Slain, president, IIA; Paul H. Walgenbach, secretary - treasurer, AAA; Rown Brinkley, secretary,NAA; and Don G. Eder, president, NAA.

NAA served as host to the currentyear's meeting of the Five AccountingAssociations — American AccountingAssociation, American Institute ofC. P. A.'s, Controllers Institute ofAmerica, Institute of Internal Auditorsand NAA. These five associations havebeen meeting annually since the 1958-1959 year for the purpose of dis-cussing activities, services and othermatters of mutual concern and interest.The meeting was held January 12, at

the University Club in New York.Matters discussed by the association

heads included accounting education,research activities, relations with thefederal government, participation inthe eighth international accounting con-gress, and developing student interestin accounting. Next year's meeting ofthe group has been scheduled for Janu-ary, 1963, in New York. The Instituteof Internal Auditors will serve as hostat that time.

Management accounting is a broad field. Over the years there has developedwithin management accounting a number of areas of specialization --costaccounting, systems and procedures, budgeting, machine accounting —tomention a few. While providing wide coverage of the management account-ing field in its publications, research work, and national, regional, subjectand seminar conferences, the Association has also provided coverage. of theareas of specialization and their interrelationship. But because chapters con-tained in their membership groups of members interested in each of the areasof accounting specialization, chapter meetings have tended to deal with thebroad field rather than the subdivisions of it.

Chapter Section Meetings DevelopRecognizing that chapter members would like to have more opportunity

to participate in meetings dealing with their areas of special interest, theAssociation's Committee on Accounting Development has recommended andthe National Board has approved a modification of chapter programs to gointo effect with the 1962 -63 chapter year. Members have already been puton notice regarding this program by the member interest survey which wasconducted last fall to provide chapter boards with an indication of the areasin which their chapter members were interested. The almost 50% responsein this survey, seemed to indicate real member interest in the program.

Chapter boards are now starting to plan next year's program. Based on thesurvey of member interests they are setting up technical planning committeesin those areas in which there is most member interest in the chapter. (Over10% of those who participated in the survey indicated their interest in servingon such planning committees.) Each of these committees will plan and con-duct at least four meetings in their subject area during 1962 -63. Thesemeetings will be in addition to not more than seven general chapter -widemeetings. In some cases each section meeting will be held separately, in othercases a chapter dinner will be held, followed by section meetings in eachsubject area.

In the next few months chapter boards will be deciding what areas of ac-counting specialization will be covered by section meetings, and in obtainingchapter members to serve on the technical planning committees and as dis-cussion leaders at these section meetings. If you are interested and have notvolunteered through the member interest survey card, your chapter officersand directors will appreciate knowing your interest.

AT THE RIGHT: Morristown Chapter members participating in five Section Meetings held last fall.Cleveland, Morristown and Rochester are the pilot chapters for the new program.

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J. Hugh Jackson, 1891 -1962

The accounting profession and NAA lost a revered and accomplishedleader in the death, on January 21, of past national president J. HughJackson at Palo Alto, California. Becoming a member of the Associationearly in 1920, he was at that time affiliated with the Boston Chapter. Sub-sequently, while holding various posts in different parts of the countryhe was affiliated with the Minneapolis, San Francisco and Peninsula -SanJose Chapters. He served as president of the San Francisco Chapter fortwo years 1927 -29 and as a national director for three years, 1930 -33.During his service as a member of the board of directors, he served in1930 -31 as director in charge of education.

Elected as a national vice president in 1936, he completed two termsin this capacity and then was elected national president for the year 1938-39. At the time of his election as president he was Dean of the GraduateSchool of Business, Leland Stanford University, a post he held from 1931until his retirement in 1956. During his long career as an educator, DeanJackson had also served on the faculties of the University of Oregon, theUniversity of Minnesota, the Harvard Business School, and the Universityof Santa Clara.

In addition to his many years of service for NAA, Mr. Jackson hadheld offices as president of the American Accounting Association, theAmerican Association of Collegiate Schools of Business and Kiwanis In-ternational. He received the CPA degree in Wisconsin, Massachusetts andCalifornia. His early years, following academic training at Simpson Col-lege and Harvard University, were devoted to work in accounting. For anumber of years he was associated with the firm of Price Waterhouse& Co., and in charge of staff training programs. He also made many con-tributions to accounting literature. His "Audit Work Papers" publishedby the American Institute of Accountants in 1923 was a pioneer work inthis field. Other books and numerous articles came from his pen duringhis long career. In 1953 he was awarded a Certificate of Merit for hisoutstanding paper "A Half Century of Cost Accounting Progress" pub-lished in the NAA Bulletin in September 1952.

As an educator himself, Dean Jackson was especially interested inthe educational objectives of the Association. He was a frequent

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speaker at meetings of chapters and at conferences. He was constantlypointing out to young accountants the opportunities open for service in theaccounting field. In his article, mentioned above, he sounded a character-istic challenge to those seeking to move forward in the profession in thesewords: "Accountants are members of a dynamic and rapidly developingfield of business and professional activity —we are going forward by leapsand bounds. This is no reason for sitting back in an attitude of self -com-placency, for we are merely on the horizon of still greater accomplish-ments ahead. While we may feel great satisfaction in the work alreadyaccomplished, let us not forget that there is a challenge in the still greater

opportunities ahead."Such was the nature of the philosophy and conviction expressed by

J. Hugh Jackson to his students and associates. His friendly interestin people and his wise counsel were genuine and freely shared. His passingleaves a void in many circles.

The Board of Directors has acknowledged with humble appreciationits gratitude and that of the Association for the long and devoted service

of J. Hugh Jackson. 0

Boston Past Presidents

ATTENDING the chapter meeting held in their honor were the fol lowing Boston past presi-dents, seated, from left to right: Al fred C. Farrell ; Clinton W. Bennett; Stanley G. H. Fitch;Stanley R. Thomas, Jr.; speaker for the evening. Raymond P. Marple, NAA assistant secretary;Arthur C. Chubbuck, and Herbert E. Tucker. Standing, from left to right: Norman H. S.Vincent; Thomas L. Morison; Henry A. Kriebel ; John F. Clarke; Henry J. Finn; Carl E. Thoreson;Joseph A. Tansey; Al lan Spurr; Francis E. Swisher, and Robert J. Weafer.

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NMembers -at -Large

O n the small British island of Mauri-tius, 500 miles off the coast of Mada-gascar in the Indian Ocean, is an NAAmember, J. Emile Series, born andeducated on the island and presentlyserving as chief accountant for a sugarplanting and manufacturing company.He is one of the many Members -at-large who make up the foreign mem-bership of NAA.

Almost 1400 Members -at- large, orapproximately 3 percent of the totalAssociation membership of over 50,-000, are scattered around the worldin over 60 countries. The notable ex-ceptions are Russia, China and theIron Curtain Countries. However,Yugoslavia has one member —RokoJ. Braut, an economist and manage-ment consultant in the city of Zagreb.

NAA'ers reside in such diverseplaces as Thailand, Finland, the Con-go, Greece, Vienna, Morocco, India,the Canary Islands, Guam, Liberia andCambodia.

It is not surprising that the largestnumber of members are to be foundin English speaking countries. Canadaleads the way with over 300 members.Australia is second with 147 and Eng-land third with over 125. Japan isfourth with 70 members. Large mem-berships are found in Brazil, India,Colombia, Argentina, Venezuela, Bel-gium, France, Germany, Italy, Phil-

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ippines, Israel, and South Africa.Membership for these men is not as

simple as it might seem. In many in-stances the initiation fee and yearlydues, nominal enough here, are quitehigh in societies where the wage scaleis considerably lower than in the U.S.Also, the payment of dues can beinconvenient with the rate of exchange,restrictions on money leaving a coun-try or territory, transfer of funds tolocal banks, etc.

In addition to these Members -at-large, who are without chapter oraccounting group affiliation, the NAAhas many members outside the con-tinental United States who are part ofAssociation units. The Hawaii Chapter,centered on Honolulu on Oahu Island,was chartered in 1922. The now in-active Cuba Chapter was chartered in1943. The Puerto Rico Chapter waschartered almost three years ago andone - year -old accounting groups are inMexico City (the only NAA unit nowin existence outside the U. S. and itsterritories) and Hilo, Hawaii -- thelargest island of the archipelago.

Although foreign membership ofNAA fluctuates yearly with the U. S.and other countries' financial situation,the number has steadily increased. TheAssociation welcomes continued growthin this interested and interesting mem-bership.

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rransl ations of Publications

Les Prix de Revient Marginaux

der Verwaltungs -und VertriebskostenThese are titles of NAA Research

Reports —just three of the many trans-lations made of Association publica-tions in the pas t few years. The first(French) is "Direct Costing "; the sec-ond (Japanese) is "How StandardCosts Are Being Used Currently "; andthe third (German) is "The Analysisof Non - Manufacturing Costs for Man-agerial Decision."

Month after month, requests comeinto NAA headquar t e r s in New Yorkasking for permission to reprint wholeor parts of NAA Research Reports,Accounting Practice Reports or Bul-letin technical articles. Many comefrom organizations in the Englishspeaking countries — Canada, Australiaand England, but many others origi-nate in lands with different languages.This is in addit ion to the regular mail-

ing l ist of almost 300 U. S. and for -eign associations and university li-braries that receive Section 1 of theBulletin each month.

Five research reports have beentransla ted by accounting professors atWaseda and Hitotsubashi Universitiesand published in one volume by theJapan Productivity Center in Tokyo.The text is liberally sprinkled withAmerican technical terms and idio-matic phrases for which there is noJapanese character counterpart . TheCenter has subsequently publishedthree other research reports.

The Hokoto Shobo Publ ishing Co. ,Tokyo, has translated and published"How Standard Cos t s are Being UsedCurrently," the t i t le referred to at thehead of thi s article. One research re-port and portions of another have beenpublished in a Japanese Magazine,"Kigyo Kaike i."

The Rationalisierungs - Kuratorium

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Der Deutschen Wirtshaft (Coordinat-ing Committee of German Commerce)has published five NAA Research Re-ports separately and recently receivedpermission to translate and publish asixth report. Three research reportshave been published in French by theUnion Nationale des Professionnelsde la Comptabilitie in Brussels; aFrench scientific organization in Parishas printed "Accounting for Researchand Development Costs "; and threeFrench groups have translated Section1 articles regularly over' the years.Although they were printed in English,NAA articles have appeared in publi-cations in India, Denmark and Pakis-

tan.Of course, the greatest number of

requests to reprint NAA material stillcomes from U. S. companies, associa-tions, universities and organizations.The continuing translation of Associa-tion articles and reports confirms theinternational influence and prestigethat the NAA has throughout theworld. In addition, the increasingawareness of management in manycountries, in the wake of their expand-ing economies, makes it essential thataccounting techiniques be updated andthe role of the management accountantin meeting the challenges of prosper-ity be a vital one. The Associationtakes pride that its published materialis a means for helping these countriesto overcome the problems growing outof their progress.

Southern California Business Show

SONNIE BURKE. Business ShowQueen, is flanked by showmanager John H. Bergstedt onthe left and general showchairman Will iam C. Halletton the right. Both men aremembers of the Los AngelesChapter which is sponsoringthis 13th annual show beingheld this month, March 20 -23,at the Ambassador Hotel inLos Angeles. Theme of theshow is "Programming forProgress." It w i l l feature au-tomatic data acquisi t ion equip-ment in addit ion to ma jor ex-hi b i ts o f a l l types of businessequipment and services.

1 4

You Name I t l

Although a number of interesting namesfor this page of items about this and thathave been submitted by members, we arestill soliciting more. If you have an ideafor a good tit le, just jot it down on a postcard or in a letter and mail it to the Editor,Section 2 Bullet in, NA A, 505 Park Ave.,New York 22, N. Y. Remember, no prizes,but we will publish your name on this, yourpage.

South Florida Hosts Teenagers

Teenage treasurers of 21 small business en-terprises formed under the Junior Achieve-ment program in Miami, Florida , were spe-cia l guests of the South Florida Chapter fortheir January technical meeting. Guestspeaker was Judge J. B. Booher, a federalreferee in bankruptcy proceedings, whosesubject was, appropriately, "The Account-ant's Role in Bankruptcy Proceedings."

Stanley C. Allyn Retires From NCR

Stanley C. Allyn, one of the founders in1927 of the Dayton Chapter of NAA, re-tired recently as board Chairman of theNational Cash Register Co., Dayton, Ohio.He will remain as a director of NCR andcontinue to serve as cha irman of the execu-tive committee.

Mr. Allyn's support and interest in theAssociation has contributed considerably tothe success of the Dayton Chapter. NCRsponsors membership in the chapter formany of its employees and also for liter-ally dozens of men in various chaptersthroughout the United States. This activeinterest by the top executive of one of thecountry's largest companies is greatly appre-ciated.

Dutch Accountants Elect Officers

The annual general meeting of the Neder-lands Instituut van Accountants has re- elect-ed H. C. Tre,(fers, Amsterdam, as presidentof the institute for the year 1962. Newcouncil members are A. C. Bakker, Jr.,Amsterdam; B. A. E. van Doorne, Rotter-dam; and W. Schmidt, The Hague.

F. van Amerongen, Amsterdam has as-sumed the office of vice president and H .Gerritsen, The Hague, was appointed hon.secretary.

San Diego Co- Sponsors CareerConference Days

The Sa n Diego Cha pter of NAA, the Cal-ifornia Society of CPA's, and the San DiegoCha pter of the National Machine Account-ants Association sponsored the second an-nual Career Conference Days, held in De-cember for Sa n D iego high school students.NAA members Pa ul Barkley and Robert N.Johnson, of the San Diego Chapter, directedthe event.

On Saturday, December 16, one hundredand sixty -five students listened to talks inthe four major areas of accounting. SanDiego NAA'ers speaking and their subjectswere: Fred W. Lawrence, government ac-counting; L. F. Moeller and J . Ray Tucker,industrial accounting; and Robert N. John-son, Dale Baker and Roger Murphy, publicaccounting. The fourth area was machineaccounting.

On Monday, December 18, a number ofstudents took advantage of the accountingtours and seminars offered by San Diegobusinesses and local school and municipaloffices.

Binghamton Past Presidents ' Night

Binghamton Chapter held its first annualpast presidents' meeting in December. Thethirteen past chapter presidents who at-tended were Morris Knapp, Albert E. Smith,Leon W. Hainer, James B. MacGibeny,Linda Stanford, Kenneth J. Brown, MichaelKirch, Alexander T. Chepeleff, Paul T.Sherwood, Gerald Wood, George E. Stan-ford, Robert E. Todd and Robert D.Lindsley.

Who Dun It?

Four men, one of whom was known tohave committed a crime, made the follow-ing sta tements to the police.

Archie: Dave did it.Dave: Tony did i t .Gus: I didn't do it .Tony: Dave lied when he said that I did

it.If only one of the four sta tements is t rue,

who was the guil ty man? Now suppose onlyone of the four statements is false. Thenwho did it?

(Answers on Page 23)

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The NAA Story -Part 4Part 3 of the series on the Association which appeared last month traced the three stagesin the evolution of cost accounting from its origin and the transition to and developmentof management accounting. This installment describes the effect of these evolutionarychanges on the Association's own development.

For a considerable number of yearsbefore and after the turn of the cen-tury, accountants engaged in commer-cial and manufacturing enterprises werepreoccupied largely with historical fig-ures and the presentation of periodicstatements of profit. Their work,moreover, was restricted to use by top

management only. As manufacturingoperations expanded and became morecomplex, management at lower levelsneeded certain information, resultingin the development of estimating andcosting procedures. The concept ofcost accounting had been established.

With the advent of World War I,and the tremendous upsurge in pro-duction, increased attention was givento the development of new accountingmethods and procedures to meet theneeds of management precipitated bythe war -time economy. The account-ant in industry was handicapped by hisown isolation and the lack of readily -available information from outsidesources. Organized accountants dur-ing that period were concerned fun-damentally with external accounting.Even so, many public accountants rec-ognized the urgent need for groupinterest in cost accounting.

It was in this atmosphere that theAssociation was established. Most ofits prime movers were, in fact, public

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accountants; and a study of the earlyobjectives and purposes reveals thefounders thought of the Associationvery much in terms of a professionalorganization. This is emphasized bythe four classifications of membershipestablished, and by the formation ofsuch committees as standardization,ethics, and in the fact that considera-tion was given to setting up a systemof examinations for qualification to thevarious classifications of membership.

Association's Purpose

The Association was founded to ac-quaint the business men of this coun-try with the best information availableon the subject of cost accounting. Thename given to the Association at itsfounding, the National Association ofCost Accountants, reflects this purpose.The fact that the Association pros-pered from the start was simply a man-ifestation that its purpose was beingrealized. From the outset, the leadersestablished programs and services de-signed to help its members meet therequired changes and demands thatprogress in business placed on the ac-countant.

The early tendency of the Associa-tion to cast itself in the image of a pro-fessional organization soon disap-peared in the wake of the increasing

interest of accountants in industry inbecoming members and actively par-ticipating in its affairs. The develop-ment of the Association as a truly edu-cational organization was also encour-aged by the insistence of its early lead-ers not to dictate to its members, butto allow the direction in which the As-sociation would mature evolve directlyfrom the members. Contributors to theBulletin, for instance, were given afree hand in writing on what inter-ested them. The planners of chaptertechnical meetings chose topics whichthey felt would appeal to their mem-bers. The same approach was takenin developing conference programs.As a consequence, the Association,through its literature, co,_'erences andchapter programs, and coordinatedservices, reflected current interests ofits members.

Beneficial Results

This policy had two beneficial re-sults. On the one hand, thorough at-

tention was given to existing problemsand accounting concepts. Membersbenefited greatly through the sharingof ideas and by learning from contactwith others representing various ages,levels of experience and job respon-sibilities. At the same time, memberswere exposed to the latest thought intheir fields and discussion of problemsand techniques of immediate concernto them. Secondly, the Associationtook on a pioneering capacity by call-ing attention to emerging conceptsand forward - looking techniques anddevelopments.

A review of NAA literature andchapter and conference programsthrough the years serves as an excel-lent cross - section of the topics and con-cepts which preoccupied members atvarious stages in the development ofcost accounting and its transition tomanagement accounting. During theearly years, standard costs were a pop-ular subject. Later, there evolved in-terest in cost control and reduction

REQUESTED BOOKS from the l ibrary in NAA headquarters in New York are selected by l ibrarianMartin Sel igsohn.

concepts. In the early 30's, flexiblebudgeting and distribution costingcaught the interest of the accountantand management. Following WorldWar I1, forecasting received consider-able attention. The 50's brought intoincreasing focus such diverse develop-ments as direct costing, return on cap-ital, control of research and develop-ment costs, etc.

The movement of the various cur-rents in accounting thought and con-cepts through the years exerted a co-rollary influence on the Association.The variety of interests of membersshowed up on all levels of NAA activ-ity. More and more members of thebusiness community, with backgroundsand interests not necessarily confinedsolely to the relative limits of cost ac-counting, were attracted to the benefitsobtainable from membership in the As-sociation. These benefits were repre-sented by the broader coverage ofaccounting and accounting - related mat-ters in its literature and meetings. TheAssociation constantly adapted itselfand its services to these various wavesof influence.

Emphasis Shifts

There emerged, particularly duringthe 50's, an association whose charac-ter had outgrown its initial concernwith cost accounting. The whole func-tion of the accountant in industry hadbeen shifted in its emphasis, broughtabout by the increasing reliance ofmanagement on the ability of the ac-countant to provide financial data toguide management actions oriented

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towards the present and future. Man-agement's reliance on the accountantwas a natural outgrowth of the revo-lutionary changes in managementtechniques and their underlying phi-losophy, resulting from the vast social,scientific and technological changeswhich altered the size and complexityof business and industrial enterprises.

NACA Becomes NAA

When the members of the Associa-tion in 1956 elected to change its nameto the National Association of Ac-countants, the dropping of the wordCost from the name taken at its found-ing was simply a recognition that theevolutionary forces affecting both ac-counting and the Association wereclosely interrelated. The Associationand its members were concerned withso many phases of accounting beyondthe limits of cost accounting that theAssociation was no longer in practicea cost accounting association for costaccountants.

Early opposition to the name change,based largely on the feeling that theprestige and authority built up over theyears under its original name might belost and the fact that the new namewas too general, has almost completelydisappeared. The new name, it is gen-erally agreed, is more suitable; andwithout the restriction of a qualifyingadjective, the Association can con-tinue its forward growth and maturityin whatever direction time, changes inaccounting and interests of its memberswill determine.

Promotions and New Positions

William F. Spaethe, Akron, has beennamed an administrative assistant at theB. F . G o od r i ch T i r e Co . . . . Joseph R. Wil-liams was recently appointed credit man-ager, international accounts, InternationalB. F. Goodrich Co.

Seven members of the Atlanta Chapterhave been promoted by the Lockheed Air-craft Corp: Maurice Egan is now directorof programs; James C. Fogarty, manage-ment systems specialist; F. G. Gaugh, inter-nal auditor; William J. Hall, industrial ac-countant; T . F. Morrow, director of admin-istration; Robert M. Patrick, financial fore-cast supervisor; and H. M. White, managerof the cost accounting department.

Paul. A. Trimble, Baltimore, has acceptedthe position of comptroller of St. AgnesHospital.

Robert Dodd, Boston, was promoted tomanager of M.I.T.'s Lincoln Laboratoryfiscal office. . . . Salvatore P. Luciano isnow assistant controller of Bolt, Beranekand Newman. . . . Peter M. Reding has re-cently opened a public accounting office andmailing service in Sudbury, Mass.

Thomas F. Cummings, Bridgeport, hasbeen named controller a t Manning, Maxwelland Moore, Inc., Stra tford, M a s s . . . . DavidH. Lindsey is now general auditor of Na-tional Distillers and Chemical Corp. He isa past president of the chapter.

Richard Duro, Canton, has been promotedto chief plant accountant at the Babcock andWilcox Co., Alliance Tube Division.

James Isaac Young, Charleston, has beenadvanced to associate professor a t the Cita-del.

J. F. Caldwell, Charlotte, has moved tothe R. T . Barbee Co. as president.

Harold C. Almond, Chattanooga, has beennamed executive vice president and RalphL. Parker secretary of the Hardwick Stove

Co. . . . C. H. Lockerby has merged withanother CPA to form a new firm of publica c co u nt a n t s . . . . Clesson A. Rogers has beenpromoted to administra tive vice presidentof the Kingsboro Division of the GenescoCorp.

Robert E. Swenson, Columbus, has movedinto the new position of vice president -finance a t the Industria l Nucleonics Corp.

Thomas R. Bowerman, Coosa Valley, wasrecently promoted to chief of the electronicdata processing division at the AnnistonOrdnance Depot.

W. F. Ross, Corpus Christi, has been ad-vanced to manager -tax accounting of theCentral Power and Light Co.

Paul Deck, Dallas, has been named vicepresident- finance of Industrial Towel andUniform Co.

Joyce Conner, Dayton, will be treasurerand member of the board of directors ofthe newly - formed Sales Education Centers,Inc. . . John R. Sheaffer is now controllerof the Standard Electrical Products Co.

Richard Battis, Delaware, is the new as-sistant controller of the National Bottle Co.and will be located at their new home of-fice in Ardmore, Pa.

Richard Czarnecki, Detroit, has beennamed chairman of the accounting depart-ment a t the University of D et roi t . . . . LewisDavies has been appointed controller ofFederal -Mogul Service. . . . Charles T.Fisher III was recently promoted to a vicepresident of the National Bank of Detroit.

...Arthur Schmaltz has been elected treas-

urer and assistant secretary of Brooks &Perkins, Inc.

G. P. Brach, Des Moines, has been electedsecretary- treasurer of Moline Iron Works.

T. R. Collins, East Tennessee, will moveto Atlanta, Ga., as assistant district man-ager of IBM's office there.

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Russell Bailey, Evansville, has been pro-moted to controller of the Kent PlasticCorp.

Richard Christ, Fort Wayne, is the newcomptroller at Rea Magnet Wire Co. .Herman Till is now cost auditor and analystat Magnavox.

Sidney T. Coutchle, Grand Rapids, wasrecently appointed control ler of H. H. Cut-ler Co. . . . Ilin Graves has been electedsecretary- treasurer and member of theboa rd of d i r ector s of Sa ck ner Produ ct s . . . .Alvin J. Vegter is now manager of manu-facturing costs for the United Biscuit Co.

Leonard A. Zick has been electedvice president and treasurer and HowardPierucki has been named controller ofCrampton Manufacturing Co.

Theodore Cizlk, Greenwich- Stamford, hasmoved to The Kanthal Corp., where he willreview and revise the cost system.

R. Karl Shank, Hagerstown, was recentlyelected to the board of directors of Bohman-Warne, Inc. He is a past president of thechapter.

Vincent R. Peshka, Hartford, has beenappointed assistant comptroller of FennManufacturing Co., Newington, Conn.

Allen Y. Shimizu, Hawaii, has joined VonHamm -Young Co. as audit and control unitmanager.

Fred C. Ray, Jackson, has become vicepresident of Redd Pest Control Co., I n c . . . .Bernard C. White, Kalamazoo, has beenpromoted to financial vice president andcontroller of the K. V. P. —Sutherland Co.

David W. Colbath, Lansing, has been pro-moted to treasurer of Teer, Wickwire & Co.. . . Norman Campbell is now office man-ager a t Q uick Indu st ri es .. . . Robert Eatonhas been elected treasurer at Yardman Co.

. M. R. Granger is the new secretaryand treasurer of Hancock Industries. .Fred L. Sims has been advanced to divi-sional controller and Donald Smith to costaccounting supervisor at the Jackson Divi-sion of C la rk Equipment Co.

...William

P. Sweet has been named vice president forfinance a t the Planet Corp.

Alfred W. Martinelli, Lehigh Valley, hasbeen appointed controller of The BuckeyePipe Line Co., Macungie, Pa.

Robert Sweeney, Long Island, has beenpromoted to supervisor of general account-

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ing at the F. & M. Schaefer Brewing Co.in Brooklyn. . Paul R. Young has beenappointed associa te professor of accounting,graduate division, College of Business Ad-ministration, St. Johns University.

Kenneth Beiriger, Los Angeles, has movedto Librascope Div., General Precision, Inc.,as controller . . Eliot Brody has joinedthe Olga Co., Van N uys, as controller . . . .John Chuchian has accepted the positionof contro ller a t American Missi l es , I nc . . . .Sanford G. Hirsch has been appointed con-troller of the Johnston Pump Co., Pasadena.

Arthur Sattler joined Packard Bell,Technical Products Div., as chief account-ant. . . Robert Tope is now controller ofTechnical Products.

W. E. Blandford, Lynchburg, has beenpromoted to internal auditor of the Gen-eral Electric Co. in Lynchburg.

John King, Merrimack Valley, is now con-troller for Maclntyre, Fay and Thayer, inNeedham, Mass.

J. G. Brzezinski, Milwaukee, is now tabsupervisor a t A. O. Sm i t h C o r p. . . . E. Gill-man has been promoted to supervisor, sys-tems and procedures, at Red Star Yeast& Products Co. . . . Wilbur E. Fischer hasbeen named comptroller of George J.M e y e r C o . . . . Louis F. Steinbach has beenappointed managing director of StatisticalTabulating Corp. at St. Louis Office. .James R. Wartinbee has been promoted toassistant secretary and treasurer of Kings-bury Breweries, Sheboygan.

Frederick P. Nye, Michiana, has beenelected secretary and controller of BuddyMobile Homes, Inc., Elkhart, Indiana.

John J. Sinnott III, Mohawk Valley, hasbeen promoted to secretary- treasurer of theBank of Utica.

James Vreeland, Morristown, has beenappointed controller of Dea ver Water Con-ditioning Co., a division of Union Tank CarC o . . . . Howard Armstrong has been namedassistant treasurer of Suburban PropaneG a s Corp . , Whip pa ny , N . J . . . . Joseph Ho-lian is now assistant treasurer of Reheis Co.,Inc., Berkeley Heights, N. J .

Charles A. Coppola, Newark, has beenpromoted to internal control supervisor ofthe credit card operation of the AmericanE x p r e s s C o . . . . Harry S. Sarkisian recentlyaccepted the position of manager of theaudi t depa rtment of Ba che & Co.

Joseph Morn, New Yor k, has moved tothe Quartite Creative Corp. as controller.

...Kenneth R. Wollard has been advanced

to assistant treasurer of The ChemstrandCorp., N. Y.

Martin J. Conneely, Niagara, has beentransferred to Reading, Pa., as territorialmanager of the Accounting and ElectronicSystems Div. of National Cash Register Co.

Robert Rose, Northern Wisconsin, hasbeen promoted to manager, product andmarket research, Straubel Paper Co., GreenBay, Wisc.

Leo Doherty, North Penn, was appointedmanager of cost accounting at the Lans-dale Tube Div. of the Philco Corp.

David Sayler, Oakland County , is nowcontroller of the Standard Transmission Div.of Ford Motor Co.

John E. Doetzel, Oakland -East Bay, hasbeen promoted to plant controller of GlassContainers Corp., Antioch, Calif. .Robert W. Hirst is the new controller ofUnited Chemetrics. . . . John Munton hasmoved to Fullerton, Calif., as assistantcontroller of Hunt Foods and Industries,Inc. . . . Edward A. Shive recently becameoffice manager of the Antioch plant of Fi-breboard.

Keith R. Beavens, Omaha, has been ap-pointed assistant treasurer and comptrollerof Nebraska Bridge Supply & Lumber Co.

Harvey D. Butler, Orange County, is nowcontract administrator and sales trainingcoordinator for Packard Bell Computer Co.He is a past president of the JamestownChapter. . Edward H. Coughran hasmoved to Advance Data Systems Corp. asadministration manager. . . . John Robertsis now chief, general accounting section,and Frank Stoltenberg chief, accounts re-ceivable section, of Hughes Aircraft Co.

Charles B. Rogers, Parkershurg- Marietta,has been appointed plant accountant at theCorning Glass Works, Parkersburg Plant.

Richard Higgins, Peninsula -Sun Jose, hasbeen promoted to cost accounting supervisorat F. M. C., Ordnance Div. . DouglasWallace is now assistant controller of theF. M. C. Corp.

George Puhl, Pennsylvania Northwest,has accepted the position of chief account-ant with United Refinery Co., Warren, Pa.

Willis L. Hunziker, Peoria, was recentlymade chief accountant of Caterpillar Amer-icas.

Charles L. May, Pittsburgh, has been ap-

Indianapolis Business Show

•HEADQUARiERS•KTW IN TREATS, Kathryn andKathleen Jensen, are mascotsof the Minnesota Twins base-bal l team and represented theRemington Rand Univoc Divi-sion of Sperry Rand Corp. inthe 1961 Indiana BusinessShow held last fa l l . The men,members of the IndianapolisNAA Chapter which sponsoredthe show, served on the ShowCommittee. They are, fromleft to right: Norman Beis-swenger; Richard Sanders; Rich-ard Warne; Ben M. Bugbee,post chapter president; Leon-ard Siekemeyer, current chap-ter president; Ray Poschke-B. J. Carmack, current nationaldirector; Richard Mil ler, gen-eral chairman of the showand post chapter president;Marion Keene; Harold Work-man; A. V. Langston, past no.tional director and the luckyman between the twins ; RobertBaerncopf ; James Henry; HughAmick; Arthur Strahla; W i l l iamTovenor; and Dan Collins.

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pointed to the newly created position of di-rector of administrative services at Alle-gheny Ludlum Steel Corp.

Bruce Broussard, Pomona Valley, is nowin charge of the accounting operations atConcrete Condui t Co. . . . Bernard M. Ha-vercamp recently became the chief cost ac-countant of Sunkist Growers, Inc.

Marshall C. Corns, Puerto Rico, has beenappointed dean of the newly formed grad-uate school of banking and finance of In-ter American University of Puerto Rico.The graduate school will open in Septem-ber 1962. Mr. Corns, a former Chicagochapter member, is a lso the author of a newbook, "Practical Operations and Manage-ment of a Bank," which was publishedby Bankers Publishing Co. last month.

O. K. Johnson, Racine - Kenosha, has ac-cepted a vice presidency at the WhitefishBay State Bank, Milwaukee.

Morris Codin, Raritan Valley, was namedsupervisor of inventory control, ThomasCuomo, cost accounting manager, and RalphS. Flatau, systems and procedure manager,at Diehl Controllers.

Stephan Kowba, Rochester, was recentlypromoted to supervisor of the corporatedept., a division of the general accountingdepartment, Rochester Gas & Electric Corp.

H. Elwood White has been electedto the board of directors of the RochesterTelephone Corp. He is a past president ofthe chapter.

Paul A. Sprenger, St. Louis, has beenpromoted to assistant controller and ErnestB. Williams to chief cost accountant a t Wag-ner Electric Corp.

Elizabeth Smelker, San Francisco, is nowchief accountant for San Francisco Factor-ing.

Neal Shively, Seattle, has been promotedto manager, price analysis group, Aero-Space Div., Boeing Company.

Reade E. Davis, Scranton, has beenelected secretary and treasurer of EurekaSpecialty Printing Co. . William Wyattis now controller and Jack Cross is man-ager of general accounting at Eureka. Mr.Wyatt is a past president of the chapter.

...Edward M. Edwards, also a pa st chap-

ter president, has been promoted to chiefaccountant of International Salt Co.

Gerald Kanne, Southeastern Minnesota

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Accounting Group, has been appointed as-sistant vice president of Northwestern Na-tional Bank. . . . Robert Michels has beennamed secretary- treasurer and elected tothe board of directors of Naegele Sign Co.

Harold J. Snyder, Southern West Vir-ginia, was recently appointed chief engineerof the West Virginia Public Service Com-mission.

JOHN J. DAVIS, SouthFl o r i d a , has beenelected vice presidenta n d c o n t r o l l e r o fRyder Sy s t em , Inc.,which operates trucklines and truck leasingorganizations. Charterpresident of the Mos.sachusetts North ShoreChap te r , Mr. Davi swas pr evi ou s l y em-ployed as control l er ofS y l v a n i a E l e c t r i c ' sLighting Products Divi-sion in Salem, Mass.

Lois Steinhofer, Southern Florida, is nowsecretary and treasurer of Embry RiddleAeronautical Institute.

Theodore Drewniak, .Springfield, hasmoved to Wico Electric Div., Globe Union,Inc. as controller. . . . Paul Barnes is nowmanager of manufacturing of Wico. . . .Wallace M. Scott was recently named as-sistant treasurer at United Elastic Corp.He is a past president of the chapter.

Robert J. Quade, Syracuse, has been pro-moted to accounting head of the KansasCity Division of Sealright- Oswego FallsCorp.

Clarence W. Snyder, Trenton, has beenappointed controller for the Eastern Divi-sion of the Colorado Fuel and Iron Corp.,comprised of the John A. Roebling's Sonsand Wickwire Spencer Steel Divisions.

Robert L. Blomberg, Tri- Cities, has beenpromoted to assista nt treasurer of the EagleSignal Co.

John Clarke, Waterbury, has been namedhead of the operational cost department andClaybome Hall division controller forPrinceton Knitting Mills, Inc.

Everett Hicks, Worcester, has been electeda trustee of the Worcester Five Cent Sav-ings Bank. Mr. Hicks is a vice presidentand general ma na ger of Norton Co

James Kadilak, York, has been electedassistant treasurer of Cycloblower Co.

Organization Service

Joseph Hughes, Boston, has been electedvice president of the New England Chapter,Institute of Internal Auditors.

Bernard Shilt, Bu(jalo, has been electedpresident of the National Association ofSupervisors in Business Education.

Charles Beauvais, Detroit, has been ap-pointed treasurer of the Michigan JuniorChamber of Commerce.

Alfred L. Bernd, Indianapolis, has beenelected president of the State Auto Insur-ance Association.

Joseph Pittenger, Lancaster, was recentlyelected president of the Central Pennsyl-vania Chapter of the Systems and Proce-dures Association.

Bernard H. Little, North Central Ohio,was named president of the newly- formedMansfield, Ohio, Treasurers Club.

Frank Van Iderstyne, Northern NewYork, was recently elected vice presidentof the S t. Lawrence Valley Association, thechamber of commerce for northern NewYork.

Calvert Krueger, Phoenix, has beenelected to the executive committee of theAmerica n Society of CPA's.

R. Putnam Kingbury, Southeastern Min-nesota, was named president of the Na-tional Association of Clinic Managers forthe current year.

Public Service

George J. Nowak, New Haven, was re-cently appointed to a three year term onthe State Board of Accountancy by Con-necticut Governor John N. Dempsey. Histerm began Jan. 1, 1962.

James J. Thornton, Southeastern Minne-sota, has been appointed a member of theGovernor 's Withholding Advisory Commit-tee.

Miscellaneous

Richard A. McManus, Brooklyn past pres-dent, conducted a seminar on "Using theReturn on Capital Concept" at Pace Col-lege recently.

Henry De Vos and Hugh Reid, Paterson,conducted a plant tour and accounting dis-

cussion with the Accounting Club and costaccounting class of Upsala College re-cently. The students toured the facilities ofthe Hoffmann -La Roche Co., Nutley, N. J . ,and the Annheuser -Busch Co. The twoNAA'ers are professors of accounting atUpsala. Approximately 60 students at-tended.

SpeakersThomas S. Dudick, Boston, was recently

guest lecturer at the Harvard BusinessSchool.

E. J. Swartz, Canton, spoke before a Chi-cago conference of the American Manage-ment Association on the subject "DirectCosting."

Alvin Pederson, Philadelphia, spoke be-fore the 19th Annual Accounting Forumof the Pennsylvania Institute of CPA's atTemple University recently on the subject"The Public Accounting Profession in theSpace Age." . . . J. R. Belfi spoke on "Pub-lic Accounting" at the Accounting CareerForum of St. Joseph's College.

In Memoriam

Victor L. Denis, 41, Member -At -Large(Belgium), 1959.

John H. Nagle, 66, Pittsburgh, 1932.Emeritus Life Associate.

George A. Nelson, 64, Peoria, 1943.Emeritus Life Associa te.

Harold R. Schaffer, 41, Philadelphia,1952.

Kenneth Sprowl, 36, Los Angeles, 1957.

Everett W. Strange, 67, Birmingham,1937.

"Who Dun It" Answer

(See Page 15)

Let each sta tement in turn be the trueone and set up a "tru th table." Make onequick observation: Sta tements 2 and 4 cannever both be true or both false. Underthe first set of conditions, Gus is guilty.(Statements 1, 2 and 3 are then false, thelast one true.) Under the second set of con-ditions Dave is it. His sta tement is false,the other true.

Peoria Newsletter

23

JUSTASKHIM!

Many highly qualified men and women are not NAA mern-bers simply because they have never been asked to join.

Take a good look around you —at work and in your sociallife. You know many men and women who would benefit

greatly from and be valuable additions to the Association.Talk to them. Tell them about NAA —its activities, its publi-cations, its goals. You don't have to be a super - salesman. Ifyou think enough of NAA to be a member yourself, you

should be able to communicate your reasons for member-ship to someone else. Try it! Just ask him or her! You'll be

amazed at the results.

(If you need help, just contact your Chapter or Accounting Group MembershipDirector. He not only will have some good ideas, but also has on hand agenerous supply of Membership Kits, a handy, pocket -sized kit assembled byNAA Headquarters to aid members like yourself in obtaining new Associationmembers. For Members -At- Large, the kits are available, upon request, fromNAA Headquarters in New York.)