By a system of bookkeeping adopted by the city of Minneapolis, Minn., in 1904, all accounts were kept in the city comptroller’s office, the waterworks books showing only revenue and expense accounts. This was thought by Registrar Young to he unsatisfactory, as it did not permit him to make any report as to the financial condition of the waterworks department. In January, 1909, an ordinance was passed installing a system of bookkeeping prepared by Marwick, Mitchell & Company, which permits that department to make a complete financial statement, which statement is printed with the annual report. The report for 1909 made according to this system contains four tables. Table No. 1 shows a complete report of all revenue earned. Table No. 2 is a complete statement of all expenses of operation and maintenance. Table No. 3 shows the revenue and expense surplus account. All profits from the operation of the waterworks are credited to this account, and all construction is charged to it. Table No. 4 shows all the assets and liabilities of the waterworks department Table No. 5 gives the trial balance; No. 6, revenues from 1871 to date. Table No. 7 gives a statement of the waterworks bonds which are outstanding. These bonds are paid out of the general sinking fund, together with interest on the same, this being considered to be offset by the service rendered the department in the form of fire hydrants, sprinkling hydrants and maintaining the same, and furnishing all water used for fire, street, flushing and sprinkling and sewer flushing. Tables Nos. 8, 9. 10 and 11 show the number, make and size of meters in use, number put out of service, etc.