THE LIFE AND WRITINGS OF STUART CHASE (1888–1985) STUDIES IN THE DEVELOPMENT OF ACCOUNTING THOUGHT Series Editors: Robert J. Bricker and Gary Previts Recent Volumes: Volume 1: Henry Rand Hatfield: Humanist, Scholar, and Accounting Educator, 2000 Volume 2: Foundations for the Future: The AICPA from 1980–1995, 2000 Volume 3: The Story of a Fortunate Man: Reminiscences and Recollections of Fifty-Three Years of Professional Accounting, 2000 Volume 4: Development of the Income Smoothing Literature 1893–1998: A Focus on the United States, 2001 Volume 5: The Murphy–Kirk–Beresford Correspondence, 1982–1996: Commentary on the Development of Financial Accounting Standards Volume 6: Doing Accounting History: Contributions to the Development of Accounting Thought Volume 7: Accounting: How to Meet the Challenges of Relevance and Regulation STUDIES IN THE DEVELOPMENT OF ACCOUNTING THOUGHT VOLUME 8 THE LIFE AND WRITINGS OF STUART CHASE (1888–1985) FROM AN ACCOUNTANT’S PERSPECTIVE RICHARD VANGERMEERSCH University of Rhode Island, USA 2005 Amsterdam – Boston – Heidelberg – London – New York – Oxford Paris – San Diego – San Francisco – Singapore – Sydney – Tokyo ELSEVIERB.V. 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ISBN: 0-7623-1213-0 ISSN: 1479-3504 ∞ ThepaperusedinthispublicationmeetstherequirementsofANSI/NISOZ39.48-1992(PermanenceofPaper). PrintedinTheNetherlands. Working together to grow libraries in developing countries www.elsevier.com | www.bookaid.org | www.sabre.org This book is dedicated to Sonia Chase Hodson The Valiant Keeper of her Father’s Flame CONTENTS ACKNOWLEDGMENTS ix PREFACE xi INTRODUCTION 1 A BRIEF REVIEW OF THE SEVEN STAGES OF THE 7 LIFEANDWRITINGSOFSTUARTCHASE,FROMAN ACCOUNTANT’S PERSPECTIVE GENERAL BACKGROUND AND ACCOUNTING, 17 1888–1917,ANDWORLDWARI,WITHTHEFEDERAL GOVERNMENT, 1917–1920 A VOICE IN THE WILDERNESS, 1921–1929 29 DEPRESSION AND THE NEW DEAL, 1930–1941 59 WORLD WAR II, 1942–1945 89 WRITING FOR THE GENERAL PUBLIC, 1946–1968 95 THE LAST YEARS, 1969–1985 113 CONCLUSIONS 121 vii viii CONTENTS APPENDIX: CHRONOLOGY OF STUART CHASE 129 REFERENCES 177 ACKNOWLEDGMENTS Sonia Chase Hodson. Bill Enoch, her husband and kind co-host with Sonia for our New Mexico visit. Alan Hodson, Stuart Chase’s grandson and a leader of the Stuart Chase Society and its webmaster. Bryce Hodson, Stuart Chase’s grandson with whom I had a very helpful and inspiring phone conversation. John Carfora, for his help in further understanding Stuart Chase. Joel Dirlam, Emeritus Professor of Economics at the University of Rhode Island, for his advice and long friendship. Lois Pazienza, for all her help to make a manuscript for this book. Emily Greene and Julie Ann Cerrito of Interlibrary Loan at the Li- brary of the University of Rhode Island. Gary Previts, Case Western Reserve University and co-editor of Elsevier’s Studies in the Development of Accounting Thought and a long-time friend and fellow accounting historian since 1968. Rob Bricker, Case Western Reserve University, co-editor with Gary. ix PREFACE Abookiscompleted,anditisnevercomplete.StuartChasewasamanwith many hats. It is necessary to write the first book about him from an ac- countant’s perspective before the second, third, and fourth books are writ- ten about him. Stuart Chase gives much needed knowledge to words and terms such as ‘‘Waste,’’ ‘‘Capacity,’’ ‘‘Federal Capital Budget,’’ ‘‘Deficits,’’ ‘‘Profits,’’ ‘‘Communication,’’ ‘‘Utopias,’’ ‘‘Utopians,’’ ‘‘Planners,’’ ‘‘Organizational Ethics,’’‘‘HumanRelations,’’andmanyother.Thisbookisagoodstartfor readerstogetaholisticlookattheveryencompassingmindofStuartChase. Readhisarticles,reviewsandbooks.Perhaps,youmighttryareplication of such books asThe Tragedy ofWaste andYour Money’s Worth.Remem- berStuartChasewasnotonlyacritic,hewasadoeraswell.Hewastheco- founder of the Consumer Union and its Consumer Reports. ThewriterhasspentsevenyearsonthisquestofrelatingStuartChaseto the new millennium in general and to accounting professors, students, and practitioners specifically. Chase after Chase. You and society will be well rewarded. Richard Vangermeersch xi