Statement of

This enables us to know whether there are freight charges on certain material, and how much, which is especially essential in the making up of price. Monthly At end of month the Purchasing agent sends the storehouse a statement of Charges from charges, in duplicate, showing number of bill, name of firm and amount, and if it Purchasing checks Department. up O. K. copy is receipted and returned, and total charges taken into account for the month.

Triplicate Invoice Bills.

Storehouse

There are several good features in having the triplicate bills as made by shippers. It is a saver of labor, and gives you notice in advance of material being on the way, which about that time is good information to have, as it is usually the few days preceding its receipt that it is badly needed and feel called on to "hurry it."'

DISBURSEMENT OF MATERIAL.

Material once taken into storehouse stock should be carefully guarded, and all concerned should look upon it as so many dollars and cents, and be as cautious in giving it out as though it were their private mercantile stock-none to be issued except on the order of parties duly authorized to sign same.

I heartily recommend storehouse delivering all material to the shops for their use. It is a work for which boys at 10 cents per hour can be used mostly, requiring men for only the heavy material.

The having of all departments of shops and storehouse under telephone conForce Deliver- nection will be found a great convenience and economical, especially with shops of ing Material to Shops. any size. With this arrangement a boy can be located at the 'phone in storehouse to take orders from shops for material and perform such other duties as may be assigned him, and the required number of boys to report to him, get the orders, have them filled and delivered to party ordering.

Foremen's orders on Store

I think by this method the cost of handling material from storehouse to shops can be reduced to a minimum, as it is a 10-cent boy against a 25 or 30-cent mechanic, and the boys will make two or three trips to the mechanic's one, as this is their specially assigned work. While with the mechanic it is, in a great many cases, their ten or fifteen minutes off" to discuss politics and issues of the day.

The question of all requisitions made by foremen on storehouse for material house for used in shops reaching recording clerk and being properly accounted for, is one that Material. gave me a great deal of concern.

If a requisition for a file, a few sheets of emery, or similar articles is lost, it would not amount to much, but if one calling for set of tire, flues, a pair of cylinders or other expensive material were lost, it would make quite a difference in book value and material actually on hand, to say nothing of inaccuracy of account chargeable with items called for by ticket lost. To overcome this I would suggest the use of numbered requisitions or tickets, in duplicate, of the following form:

Each book containing 200 tickets-100 numbers-and as they are received from stationer's office the number of each book is recorded, and as given out the name of party issued to is noted opposite book number, and if in checking up tickets any number is found missing it will be known who to call on for duplicate. By the use of carbon sheets it requires no more time to write original and duplicate than it does to write the one order.

When material is sent out on the line and to division storehouses from general storehouse, an invoice should be mailed showing how and when shipped, requisition number or authority for shipment, article, quantity, price and amount. The following is submitted as a convenient form:

Invoice for
Shipped from

Material

Storehouse.

with detachable receipt at bottom, to be signed and returned to shipper for file.

For ready reference as to quantity of any item of material on hand at any Stock Cards. time, monthly receipts and disbursements of same, I submit the following form

of stock card as being first-class :

Rec. Iss'd. Rec. Iss'd. Rec. Iss'd. Rec. Iss'd. Rec. Iss'd. Rec. Iss'd.

Daily Report

NOTE.-Amount remaining on hand at close of month to be entered at top of column for succeeding month.

Card starts with amount on hand first of month, the quantity received from time to time during the month is entered immediately under it, and as the material is issued to shops or shipped, it is entered in column "issued, '"' and amount remaining on hand is carried to next column.

The use of this card will show at a glance the amount on hand at any time. It shows amount of your monthly receipts, amount used each month, and as the future can best be judged by the past, it is very valuable in determining future requirements (See mention made above, regarding use of stock card in making monthly requisition for material.)

If the card shows the same amount on hand from month to month, it is silent evidence that it is hard stock; no more wanted, and steps should be taken to get rid of what you have.

It is from these cards that the average monthly consumption and amount on of Material hand is obtained by stockkeepers in making up their monthly requisition for

Out.

material.

While storekeepers strive to keep their stock in such shape as to be able to fill all orders presented them for material, they frequently find themselves out of some items, and in order to follow the matter up systematically I would recommend a morning report to the storekeeper of any or all items called for the day before, that they could not fill. The following is very good for the purpose:

1900

Storekeeper:

Following is list of material that we are out of, and for which have had call

The material shown on report may have all "been hurried," but the idea is to keep the fact continually before you, that you are out of certain material.

It will be noticed that the requisition number on which material was ordered is shown on blank. This is obtained from stockkeeper's book who furnishes information regarding shortage of material.

The requisition number, however, is verified in office before using it, in taking up with Purchasing agent.

with Auditor

As for the accounting with auditor, I will pass it over as not being expected or Accounting desirable here. I would simply say that I am wedded to the idea of dividing material up into different classifications or stock accounts, suggesting the following:

of

All material received and disbursed is to the debit and credit of whatever stock account it belongs to, and to handle in this manner, a "material ledger following form will be found convenient :

of Material

The chief end of this method is to give you ready information as to quantity in

dollars and cents of different classes material used, and amount on hand. To use

it is to appreciate it in many different ways.

Monthly I have laid a great deal of stress in this article upon importance of keeping Comparative Statement stock to a minimum at all times, and as it is not very good policy to suggest or Received and recommend without also advancing an idea as to how it can be carried out, I would Disbursed offer the following as being one of the best plans I have seen:

The general storekeeper should prepare and send to each division storehouse a monthly comparative statement showing amount of material on hand at each storehouse first of month, material received during the month, total amount disbursed, and percentage disbursement to total on hand and received. To make it more comprehensive, I give you below copy of statement as made up and sent out : COMPARATIVE STATEMENT OF MATERIAL ON HAND AND DISBUrsed.

NOTE. Shop disbursing largest percentage of material considered best. One the smallest percentage the poorest.

This statement shows at a glance whether too much stock is being carried at any of the storehouses, and it also shows which of the storehouses are making the best and poorest showing in this respect.

I desire to answer in advance any question that might be raised as to whether or not a statement of this kind would not have a tendency to show increased disbursements in order to raise percentage of disbursements by saying emphatically, "No." The matter of expenses is always being guarded, and every possible action taken to keep to lowest limit. All kinds of statements are made.

With this close check on expenses, the next thing to do is to keep tab on material stock and see that excessive amounts are not carried. See how often it is being turned over. We all know that a merchant turning his stock or capital over