In nine cities inspectors have police power and in one city they have restricted powers. In one case the Fire Marshal and the assistant only have police power, and in another instance the chief inspector and fire investigators have this power. In ten cases inspections are made by officers, in ten others by both officers and privates. In two cases no inspections are made. In eighteen instances inspections are made on city time and in three they are not. In one case they are made "on and off." In all but six cities fire drills are conducted in city schools by firemen, the intervals varying from monthly to annually. Previous to attempting to supervise or criticize fire drills, the inspector should thoroughly acquaint himself with various types of drills, means of egress, and the dangers of each if improperly designed. In All except one city have a follow-up system. Re-inspections, mailed notices and check-ups by Fire Marshals are the usual custom. some instances those who do not comply are referred to the State Fire Marshal's office. The card systems for keeping inspection records. vary greatly, but almost all of the cities mentioned use such a method. Some are very elaborate with special printed blanks for use in connection with various occupancies. These blanks should be designed to meet local conditions. A permanent fire prevention bureau can accomplish much, especially if backed up with an efficient modern building code, proper ordinances regarding fire hazards and authority for compelling corrections where resistance is met. Inspections by Fire Extinguishing Force It is sometimes difficult for moderate-sized cities to maintain a separate branch of the fire service for fire prevention exclusively and in extremely small cities this arrangement is very rare indeed. But every city having a fire department of any kind should see to it that regular inspections are made and that the inspector has authority to secure the elimination of existing fire hazards. Even where the fire chief is the only full time paid man on the department a reasonable portion of his time should be spent in doing this valuable work. State Laws and Fire Department Inspection That fire prevention inspections on the part of the fire department are important is further indicated by study of the existing Fire Marshal laws of some of our states. As four states have decreed by law that local fire departments do inspection work, a glance at certain sections of the laws in these is interesting. IN INDIANA "It shall be the duty of the chief of the fire department of each city of the first, second, third and fourth class, in addition to his other duties, to inspect all buildings, premises, and public thoroughfares, except the interiors of private dwellings, for the purpose of ascertaining and causing to be corrected any conditions liable to cause fire. Such inspection shall be made at least once in three months-in such fire limits." A SECTION OF THE KENTUCKY LAWS READSthe Chief of the fire department is required in person or by officers or members of his fire department designated by him for that purpose to inspect all buildings except the interiors of private dwellings." The inspection is to be "made once each 6 months in territory served by the fire department, and not less than once in 3 months within the fire limits, and oftener as the Chief may order. A written report shall be made and kept on file." IN NORTH CAROLINA-"It is the duty of the insurance commissioner to require in all municipalities of the state that such officers . . . make in their respective municipalities annual inspections of the buildings therein, and quarterly inspections of all premises within the fire limits, and report in detail the results of their inspections to the insurance commissioner upon blanks furnished by him." THE WISCONSIN LAW SAYS "Such Chief of the fire department is required, by himself or by officers or members of his department designated by him for that purpose, to inspect all buildings, premises, and public thoroughfares, except interiors of dwellings, for the purpose of ascertaining and causing to be corrected any conditions liable to cause fire, or any violations of any law or ordinance relating to the fire hazards or to the prevention of fires." This is to be done not less than once in three months within the fire limits, and at least once in 6 months in all territory served by such fire department. Written reports must be kept on file "in the manner and form required by the Wisconsin Industrial Commission. Such inspection shall be subject to the supervision and direction of the Industrial Commission In most of the other states the law is not so specific. In some the local chiefs "may inspect" (Illinois, Iowa, Vermont), or "shall inspect upon complaint" (Alabama). In Maine the municipal officers shall annually elect an "inspector of buildings," who at least once in three years shall "inspect chimneys, flues, funnels, stoves, furnaces, boilers and boiler connections and heating apparatus in all buildings within his jurisdiction." The Oklahoma law requires the fire chiefs to inspect certain buildings "which have and maintain fire escapes, at least every three months." Other states make local fire chiefs deputy state fire marshals with power to inspect. Thus it is seen that some state legislatures have appreciated the value of inspections by firemen. A Suggested Ordinance A suggested ordinance for establishing a bureau of fire prevention and defining proper powers and duties has been adopted by the National Board of Fire Underwriters and the National Fire Protection Association. Copies may be obtained upon request. MUNICIPAL APPRAISAL SERVICE The Manufacturers' Appraisal Company, in addition to its large industrial-plant appraisal business, serves Cities, Counties, States, Boards of Education and other governmental units requiring professional valuation services. We are prepared to furnish competent specialists for any municipal requirement, and particularly for these services: Inquiry at any of our offices will receive prompt attention. Write for free literature: (a) "Scientific Real Estate Aasessments by Somers System Methods," (b) prospectus of our book, "The Science and Practice of Urban Land Valuation." Municipal Accounting and Finance Conducted by Francis Oakey, C. P. A. Member of the Firm of Searle, Oakey & Miller, New York A BALANCE sheet is a statement intended to reflect at a given date the approximate financial condition of a corporation, partnership or individual. For this purpose the balance sheet presents on one side the known, estimated, or appraised values of all assets or possessions, and on the other the amounts of all known liabilities, thus arriving at the excess of assets over liabilities or net worth. Thus the balance sheet is essentially a reflector of capital or net worth or net estate; it marks the progress in the acquisition of property; it is a measure of accumulated wealth. By means of itemization and grouping of items the balance sheet conveys information relating to various phases of financial condition, namely: 1. Showing in one group all current assets and in an opposing group all current liabilities, it approximates current condition or the degree of ability to meet immediate obligations. 2. If there are any investments in stocks, bonds or mortgages not inherent in or essential to the conduct of the business and not readily marketable -these are shown in a separate group, thus indicating the extent to which capital has been thus diverted. 3. The plant or properties used in carrying on the business, such as lands, buildings, machinery, etc., are shown in a separate group at their estimated present worth; that is, cost less accumulated depreciation. 4. In order to arrive at the total net worth at a given date miscellaneous payments applicable to the operations of the next ensuing period, such as taxes, insurance and interest, are included as assets in a separate group. 5. Liabilities which are not immediate obligations, such as bonded debt or mortgages payable, are separately stated. 6. The owners' invested capital-the balancing figure is shown as the last item on the liability side. A balance sheet such as that outlined in the foregoing paragraphs is indispensable in nearly all important proceedings affecting the finances of a commercial business, for example: The determination of the value of stockholders' equities 12. The determination of the return on invested capital Commercial Balance Sheet Not Applicable to Municipal Finance While the foregoing subjects are constantly considered in commercial affairs, they are quite foreign to the field of municipal finance, with the possible exception of the one first enumerated-obtaining credit at the bank. These subjects relate to the management of capital or property for gain. A municipality has no capital or net worth; it is not created for the purpose of accumulating wealth; its chief resource-taxing power— cannot be valued. The values of its properties-its land and buildings, streets and sewers have little or no relation to its financial condition-generally they cannot be sold or at least are not available for sale; nor are they available to pay debts or to mortgage as security for debt. Some of the most important properties of a city, such as its streets, sewers and riparian rights, cannot be appraised. When an attempt is made to place values on the permanent properties of a city and include them in a balance sheet, the result is a meaningless surplus. If, in addition, the funded debt which is generally the largest liability of a city, is included in its balance sheet, the effect is nothing more than the reduction of the already meaningless surplus produced by the inclusion. of the permanent properties. Moreover, the inclusion of the funded debt may produce a The above photograph is typical in showing the convenience of electrical operation. The meter body can be located in a tunnel, basement or some other inaccessible distant point and yet the reading instruments are close at hand where they can be read at a glance by the engineer. In deciding on water meters you will agree that the following points are of utmost importance. They result directly from the use of the thin plate orifice and electrical operation. (1) Accuracy and con- The panel board can venience of reading be located at any place and its reading instruments wired to the meter body. Electrical operation eliminates error al ways associated with mechanical moving parts (2) Ease and flexibility The use of the orifice (4) No voltage Voltage variation in current Bulletin "Republic Water Meters" sent on Request Republic Flow Meters Co. deficit especially if the properties were acquired generations ago and have not been recently appraised. Perhaps, the most important point remains to be made and that is that the financial condition of a city consists in its ability to finance service requirements and in nothing else. Its financial condition is not affected by the values of its properties, in dollars, but rather by their physical condition and capacity for service. It is true, its financial condition is affected by the amount of its funded debt, but this liability relates to the assets which cannot be valued— taxing power. The conclusion is that the form of balance sheet which has been long established in commercial affairs has no place in reporting the affairs of a municipality. The Scope of the Municipal Balance Sheet There is a statement of assets and liabilities which is essential in the management of municipal finances, namely, the current balance sheet which is confined to the presentation of current assets and current liabilities. This balance sheet includes the following items: Assets: Cash Taxes accrued not collected Less: reserve for deficiencies Miscellaneous accounts receivable Special assessments accrued not collected Liabilities: Warrants payable Vouchers payable Temporary loans Assessment bonds or notes Excess of Assets over Liabilities A In this statement only those liabilities are included which must be met in the current fiscal period immediately passing, and only those assets are included which are available or will be available to pay such liabilities. Stores or inventories of supplies and materials items often treated as a current asset-are. excluded because they are held by a municipality for sale only in rare instances and then in comparatively small quantities. The Uses of the Current Balance Sheet The current balance sheet is essential as a basis of action in disposing of various important questions which arise in the management of the finances of a city. Its chief use is to convey the information needed in the provision of cash to meet current obligations. In this question the relation of the cash balance to the current liabilities is the first consider: tion; the second is the rate of collection of receivables which may be expected. With these two points in mind decision may be reached as to the necessity or advisability of borrowing in anticipation of the collection of taxes. When compared with balance sheets of previous dates, the current balance sheet also is a basis for determining whether or not there is laxity or delay in the collection of taxes or other receivables. Thus it is a means of establishing administrative control over the efficiency of collecting offices. Finally, the current balance sheet is an im- Department of Commerce Predicts 1000 Airports and PREDICTION that by the end of 1927 about 1000 airports and intermediate landing fields will dot the United States from coast to coast and from the Canadian border to the Gulf of Mexico, is made in a statement issued July 18 by William P. MacCracken, Jr., Assistant Secretary of Commerce for Aeronautics. The statement is based on a survey of airway facilities by the Department of Commerce which shows that during the past year more than 50 new airports have been established and twice that number of cities have set aside funds or have begun plans for modern airports. Chambers of commerce, business clubs and other civic organizations are cooperating in the effort to build up a complete airway and airport system. The present 864 fields include 207 municipal, 163 commercial and private airports, 124 Department of Commerce intermediate fields, 287 miscellaneous intermediate fields and 81 Army, Navy, and National Guard fields, 1 Treasury, and 1 Agriculture field. By the end of the 1928 fiscal year the Department of Commerce estimates that lighted and marked intermediate fields will total approximately 262 compared with 124 at the present time. In addition, 93 municipal fields are proposed. Besides these, the Department of Commerce has on record about 3,000 unimproved fields, such as pastures or similar areas throughout the country on which landings and take-offs have been or can be made. A subsequent oral statement by Ernest Jones, Chief of the Aeronautics Branch of the Department of Commerce quoted in the United States Daily for August 17, reports that a total of 187 cities in the United States are now considering the establishment of municipal airports. The statement continues: "Though the establishment of adequate airports is an absolute necessity to the expansion of civil aeronautics, the task is essentially a municipal enterprise to be undertaken on the initiative of the individual city, Major Jones said. The formation of an airport committee through the local chamber of commerce is usually the first step taken. This committee communicates with the Aeronautics Division, Department of Commerce, which is particularly charged with the establishment of airports. The Federal Bureau cooperates, supplying all available information." |