The Statement
The Statement

Max Teichmann's 1900 diary: What it might have said

By Stephen E. Loeb
Chair, MACPA History Committee and MACPA Historian
Ernst C& Young Alumni Professor of Auditing
Robert H. Smith School of Business
University of Maryland, College Park

Editor's note: MACPA will soon begin a year-long celebration of 100 years of certified public accountancy in Maryland. April 10, 2000 will mark the centennial of the passage of Article 75A, the Maryland legislation that allowed the certification of public accountants, and Feb. 12, 2001 will mark the 100-year anniversary of incorporation of the Maryland Association of CPAs.

As is noted below, Maryland was the third state in the United States to pass a CPA law, and it was not without a great deal of effort from a handful of pioneers who lobbied long and hard for its passage. Max Teichmann, who received Maryland CPA Certificate No. 1, is regarded as the "father" of the CPA movement in Maryland. He was the first president of the Maryland Association of CPAs and first president of the State Board of Examiners (see page 24 of the Loeb and May book cited in this article). To gain some insight into Max Teichmann's thoughts at the time as he fought for certification, MACPA Historian and History Committee Chair Dr. Stephen E. Loeb has developed the following fictional diary, which is based on factual information from his extensive research into Teichmann's life and the CPA profession in Maryland.

This will be the first in a year-long series of articles capturing the history of your profession and professional association. The research of Dr. Loeb and the entire History Committee will be released in a commemorative book later this year. We hope you enjoy taking this journey into the past and look forward to your participation in the many exciting activities being planned to celebrate and honor the Maryland CPA.

The following diary entries are historical fiction. Only limited information is known of the personal life or professional career of Max Teichmann, the MACPA's first President and a key player in the passage of the original Maryland Public Accountancy law.1 The essential facts that are included in this article (including the diary entries) are based in general on S. E. Loeb and G. S. May, A History of Public Accounting in Maryland, Maryland Association of Certified Public Accountants, June 15, 1976 and more specificaly on my current research on Maryland accounting history, including, for the diary entries, the footnoted sources. While the diary entries are historical fiction, Max Teichmann might have maintained a diary.

Dear Diary:

It is Jan. 1, 1900. A new century has begun. In another 100 years we will be entering a new millennium. My new public accounting partnership is prospering.2 I really feel optimistic about the future of my chosen profession. New York and Pennsylvania have already passed CPA laws.3 It would be great for Maryland to have such a law. The Maryland Association of Public Accountants is off to a good start. I am President and with Frank Blacklock and William Rogers as the other officers we should win the respect of members of the Maryland legislature and the business community.4 I am looking forward to a new year and a new century. My New Year's resolution is to see that Maryland enacts a CPA law. Hopefully, a member of the Maryland legislature will introduce our CPA bill. My wife Emilie is supportive.5 She does not mind the many evening meetings I attend. It is hard work but a CPA law is needed to protect the public.

Dear Diary:

It is Jan. 16, 1900 and I have wonderful news. Today our CPA bill was introduced into the Maryland House of Delegates.6 I understand that the bill will be sent to the Judiciary Committee.7 I will work night and day to see that the bill passes.

Dear Diary:

It is March 6, 1900 and I am worried. I have heard a rumor that today the Maryland House of Delegates did not pass our bill.8 I don't know what I will do if this rumor is true. Tomorrow I will have breakfast with Delegate Charles Siegmund -a member of the House of Delegates. I am friendly with Charles and maybe he can provide me with some information as to the exact status of our bill.9

Dear Diary:

It is March 7, 1900 and the world seems brighter. Charles was great. He is a wonderful legislator and due to his help today the bill passed the Maryland House of Delegates.10 At breakfast Charles told me that yesterday the bill "failed for want of Constitutional majority"11 and that he had then requested and the House of Delegates approved reconsideration of the bill for March 7.12 As I just happily noted, IT PASSED!! Emilie and I went out to dinner with Frank Blacklock to celebrate. Hopefully the Maryland Senate will also pass our bill and then the Governor will sign the bill.

Dear Diary:

It is done. It is over. Although the process was far from smooth, the Maryland Senate passed the bill on April 213 and tonight on April 10, 1900 Frank Blacklock, William Rogers and I are joining Governor John Walter Smith for a bill signing ceremony.14 Maryland will be the third state to license CPAs.15 I feel great. I wonder 100 years from now what Marylanders will think about today's events? I wonder what the key professional issues will be in the year 2000? What kinds of tax and systems engagements will CPAs be doing at the turn of the next century? I am sure there will be competent leadership in 2000 to handle pressing professional issues. Well, it is a great start!

Footnotes

1. S. E. Loeb and G. S. May, A History of Public Accounting in Maryland, Maryland Association of Certified Public Accountants, June 15, 1976, pp. 24, 73, 97.

2. See "The Maryland Association of Public Accountants," The Public Accountant, July, 1899, p. 108.

3. J. D. Edwards, 1960. History of Public Accounting in the United States. East Lansing: Bureau of Business and Economic Research, Graduate School of Business Administration, Michigan State University, p. 111.

4. See "The Maryland Association of Public Accountants," p. 108.

5. See R. Perine and L Bickwit, editors, "Max Teichmann," in The Accountants' Directory and Who's Who, 1920, The Forty-Fifth Street Press, New York, 1920, p. 565.

6. Journal of Proceedings of the House of Delegates of Maryland, January Session, 1900. Annapolis: Wm. J. C. Dulany Co., State Printers, 1900, p. 53. The forthcoming centennial book will have a more detailed discussion on the introduction of the bill.

7. See G. Wilkinson, "The Genesis of the C.P.A. Movement," The Certified Public Accountant, October 1928, p. 297. Also, see Journal of Proceedings of the House of Delegates of Maryland, January Session, 1900, p. 53.

8. See M. Teichmann, "Editor 'The Public Accountant,'" The Public Accountant, March 1900, p. 118; also, see Wilkinson, p. 297 and Journal of Proceedings of the House of Delegates of Maryland, January Session, 1900, pp. 703-704.

9. See Wilkinson, p. 297.

10. See the following: Wilkinson, p. 297; Teichmann, p. 118; Journal of Proceedings of the House of Delegates of Maryland, January Session, 1900, pp. 726-727

11. Quoted from Journal of Proceedings of the House of Delegates of Maryland, January Session, 1900, p. 703.

12. Journal of Proceedings of the House of Delegates of Maryland, January Session, 1900, p. 704. Also, see Teichmann, p. 118.

13. Journal of Proceedings of the Senate of Maryland, January Session, 1900. Annapolis: Wm. J. C. Dulany Co., State Printers, 1900, pp. 1350-1351; Wilkinson, p. 297.

14. See "The Maryland Act is Passed," The Public Accountant, April 15, 1900, p. 137. Also, for example, see Laws of the State of Maryland Made and Passed at the Session of the General Assembly Made and Held at the City of Annapolis on the Third Day of January, 1900, and Ended on the Second Day of April, 1900, Baltimore: William J. C. Dulany Company, State Printers, 1900, pp. 1148-1149. Also, see Wilkinson, p. 297.

15. Edwards, p. 111.

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