CORNELL 
 
 UNIVERSITY 
 
 LIBRARY 
 
CLASSIFICATION 
 
 OF 
 
 OPEEATING EXPENSES 
 
 OF 
 
 CARRIERS BY WATER 
 
 AS PRESCKIBED BY THE 
 
 INTERSTATE COMMERCE COMMISSION 
 
 IN ACCOBDANCE WITH SECTION 20 OF THE 
 ACT TO EEGULATE COMMEKCE ^ ^ 
 
 r 
 , MKST ISSUE 
 
 Effective on Janwa/ry '1, 1911 
 
 WASHINGTON 
 
 GOVERNMENT PKINTING OFFICE 
 1910 
 
Cornell University 
 Library 
 
 The original of this book is in 
 the Cornell University Library. 
 
 There are no known copyright restrictions in 
 the United States on the use of the text. 
 
 http://www.archive.org/cletails/cu31924030132298 
 
CLASSIFICATION 
 
 OF 
 
 OPEEATING EXPENSES 
 
 OF 
 
 CARRIERS BY WATER 
 
 AS PRESCRIBED BY THE 
 
 U. 5 -INTERSTATE COMMERCE COMMISSION 
 
 IN ACCORDANCE WITH SECTION 20 OF THE 
 ACT TO REGULATE COMMERCE 
 
 FIRST ISSUE 
 Effective on tfanuary 1, 1911 
 
 WASHINGTON 
 
 QOTESNMENT FEINTING OFFICE 
 1910 
 
 u 
 
 5,^ 
 

 (o%Zlf^ 
 
THE INTERSTATE, COMMERCE COMMISSION. 
 
 Martin A. Knapp, of New York. 
 JuDSON C. Clements, of Georgia. 
 Charles A. Peouty, of Vermont. 
 Francis M. Cockrell, of Missouri. 
 Franklin K. Lane, 0/ CaZ*/brma. 
 Edgar E. Clark, of Iowa. 
 James S. Harlan, of Illinois. 
 
 Edward A. Moselet, Secretary. 
 (3) 
 
At a General Session of the INTERSTATE COMMERCE 
 COMMISSION, held at its office in Washington, D. C, 
 on the 31st day of May, 1910. 
 
 Present: 
 Maktin a. Knapp, 
 JuDSON C. Clements, 
 Charles A. Peouty, 
 Francis M. Cockrell, 
 Franklin K. Lane, 
 Edgar E. Clark, 
 James S. Harlan, 
 
 ■ Commissioners. 
 
 The subject of a Uniform System of Accounts to be 
 prescribed for and kept by carriers being under considera- 
 tion, the following order was entered: 
 
 It is ordered, That the Classification of Operating Ex- 
 penses of Carriers by Water with the text pertaining 
 thereto, prepared under the direction of this Commission 
 by Henry C. Adams, in charge of Statistics and Accounts, 
 and embodied in printed form to be hereafter known as 
 First Issue, a copy of which is now before this Commission, 
 be, and the same is hereby, approved; that a copy thereof 
 duly authenticated by the Secretary of the Commission 
 be filed in its archives, and a second copy thereof, in 
 like manner authenticated, in the office of the Bureau of 
 Statistics and Accounts; and that each of said copies so 
 authenticated and filed shall be deemed an original 
 record thereof. 
 
 It is further ordered, That the said Classification of Oper- 
 ating Expenses of Carriers by Water with the text per- 
 
 (5) 
 
6 
 
 taining thereto, be, and is hereby, prescribed for the use 
 of carriers by water subject to the provisions of the 
 act to regulate commerce, as amended June 29, 1906, in 
 the keeping and recording of their operating expense 
 accounts; that each and every such carrier and each and 
 every receiver or operating trustee of any such carrier 
 be required to keep all operating expense accounts in 
 conformity therewith; and that a copy of the said First 
 Issue be sent to each and every such carrier and to each 
 and every receiver or operating trustee of any such 
 carrier. 
 
 It is further ordered, That the rules contained in the said 
 First Issue of the Classification of Operating Expenses of 
 Carriers by Water are, and by virtue of this order do 
 become, the lawful rules according to which the said oper- 
 ating expenses are defined; that each and every person 
 directly in charge of the accounts of any such carrier or 
 of any receiver or operating trustee of any such carrier is 
 hereby required to see to, and under the law is responsible 
 for, the correct application of the said rules in the keeping 
 and recording of the operating expense accounts of any 
 such carrier; and that it shall be unlawful for any such 
 carrier or for any receiver or operating trustee of any such 
 carrier or for any person directly in charge of the accounts 
 of any such carrier or of any receiver or operating trustee 
 of any such carrier to keep any account or record or mem- 
 orandum of any operating expense item except in the 
 manner and form in the said First Issue set forth and 
 hereby prescribed, and except as hereinafter authorized. 
 
 It is further ordered, That any such carrier or any 
 receiver or operating trustee of any such carrier may sub- 
 divide any primary account in the said First Issue estab- 
 lished as may be required for the purposes of any such 
 carrier or of any receiver or operating trustee of any such 
 carrier; or may make assignment of the amount charged 
 to any such primary account to operating divisions, to its 
 individual lines, or to States: Provided, however, That a 
 list of such subprimary accounts set up or such assign- 
 
merits made by any such carrier or by any receiver or 
 operating trustee of any such carrier be first filed in the 
 office of the Bureau of Statistics and Accounts of this 
 Commission subject to disapproval by the Commission. 
 
 It is further ordered, That in order that the basis of 
 comparison with previous years be not destroyed, any 
 such carrier or any receiver or operating trustee of any 
 such carrier may, during the twelve months from the 
 time that the said First Issue becomes effective, keep and 
 maintain, in addition to the operating expense accounts 
 hereby prescribed, such portion or portions of its present 
 accounts with respect to operating expense items as may 
 be deemed desirable by any such carrier, or by any 
 receiver or operating trustee thereof, for the purpose of 
 such comparison; or, during the same period, may main- 
 tain such groupings of the primary accounts hereby pre- 
 scribed as may be desired for that purpose. 
 
 It is further ordered, That any such- carrier or any 
 receiver or operating trustee of any such carrier may, in 
 addition to the operating expense accounts hereby pre- 
 scribed, keep any temporary or experimental accounts the 
 purpose of which is to develop the efficiency of operations : 
 Provided, however. That such temporary or experimental 
 accounts shall not impair the integrity of any general or 
 primary account hereby prescribed; and that any such 
 temporary or experimental accounts shall be open to 
 inspection by the- Commission. 
 
 It is further ordered. That January 1, 1911, be, and is 
 
 hereby, fixed as the date on which the said First Issue 
 
 shall become effective. 
 
 A true copy: 
 
 Edw. a. Moseley, 
 
 Secretary. 
 
INTRODUCTORY LETTER. 
 
 Interstate Commerce Commission, 
 
 Bureau of Statistics and Accounts, 
 
 Washington, June 1, WW. 
 
 To Carriers Concerned: 
 
 This Classification of Operating Expenses, with the 
 text pertaining thereto, is issued in accordance with an 
 order of the Interstate Commerce Commission, a copy of 
 which will be found immediately preceding this letter. 
 
 In formulating this classification, it has been the en- 
 deavor of the Bureau of Statistics and Accounts to enlist 
 the cooperation of the various associations representing 
 the carriers by water throughout the United States. With 
 the exception of the America,n Steamship Association, the 
 assistance received has been rendered by the representa- 
 tives of individual carriers rather than by the associations 
 of which these carriers are members. All suggestions and 
 criticisms, from whatever source received, have been care- 
 fully considered. 
 
 Special attention is directed to three points respecting 
 which considerable diversity of opinion has been ex- 
 pressed : 
 
 First. Charter of vessels. 
 
 It will be noted that a general account has been pro- 
 vided for the expenses of charter of vessels and that for 
 classification of the payments according to the various 
 conditions of charters, this account has been subdivided 
 into the following primary accounts : 
 
 Charters Involving Rent Exclusively, 
 Charters Involving Rent and Maintenance, 
 Charters Involving Rent, Maintenance, and Operation. 
 46509°— 10 2 (9) 
 
10 
 
 Provision is made for a corresponding treatment of 
 revenues from charters in the Classification of Operating 
 Revenues. 
 
 Second. Rental charges. 
 
 According to the principle which underlies the account- 
 ing rules promulgated by the Commission, a rental charge 
 is not an operating expense charge, but a charge against 
 Income. It represents a payment for the use of prop- 
 erty not embraced in the capital account, and it should 
 be treated similarly to interest and dividends as a 
 charge against Income. All rents, except the rental por- 
 tion in the charters of vessels, and rents for minor 
 offices, such as ticket agencies and the like, have therefore 
 been excluded from this classification. 
 
 Third. Depreciation. 
 
 An account has been provided for depreciation; and 
 also for renewals of vessels, tugs, lighters, barges, etc., 
 which in this classification are designated as "Equip- 
 ment." The depreciation account is intended to pro- 
 vide for the current depreciation on equipment, and there 
 should be a monthly charge to operating expenses, with 
 a credit to the corresponding reserve account, which will 
 represent at all times the expired value of equipment in 
 service. 
 
 In recognition of the fact that the probable life of the 
 machinery of a vessel varies from that of the hull, per- 
 mission is given to charge to the reserve for abcrued depre- 
 ciation (to the extent of the accruals therein with respect 
 to the particular integral parts of machinery, fixtures, 
 etc.) the cost of such renewals of important integral parts 
 of the machinery, fixtures, etc., as tend to prolong the life 
 of the vessel as a whole. Under no circumstances should 
 this permission be construed as allowing the cost of run- 
 ning repairs or the renewal of minor parts to be charged 
 to the reserve account. 
 
 When equipment is retired from service and not re- 
 placed and the proper charge to depreciation has not 
 been made during its life, the cost (estimated if not 
 
11 
 
 known) of the equipment, less salvage and any depre- 
 ciation charged with respect thereto to the date of re- 
 tirement, should be charged to Profit and Loss. 
 
 A carrier may, if so authorized upon application to the 
 Interstate Commerce Commission, set up depreciation 
 accounts under the general account, "Maintenance of 
 Terminals," to which may be charged, during a series of 
 years, such amounts as will provide for the ultimate 
 retirement or abandonment of buildings and other struc- 
 tures described- in the primary accounts under the general 
 account named. If such depreciation accounts are pro- 
 vided, the amounts charged to them should be credited 
 to reserves and the cost of property abandoned and not 
 replaced, should be charged to these reserves, to the ex- 
 tent of the accruals therein with respect to the property 
 abandoned. 
 
 This classification is drawn to meet the needs of small 
 as well as large carriers by water. For the purpose of 
 this Classification of Operating Expenses, carriers having 
 annual operating revenues of $500,000 or less will be 
 considered as small carriers and may confine their oper- 
 ating expense accounts to the following eight accounts : 
 
 I-A. Maintenance of Equipment. 
 
 I-B. Maintenance of Terminals. 
 
 II. Traffic Expenses. 
 
 III-A. Operation of Vessels. 
 
 III-B. Operation of Terminals. 
 
 III-C. Incidental Transportation Expenses. 
 
 IV. General Expenses. 
 
 V. Charter Expenses. 
 
 If a small carrier elects to confine its operating expense 
 accounts to the foregoing, the text descriptive of the pri- 
 mary accounts respectively embraced in them should be 
 followed. 
 
 Attention is called to the fact that taxes are not 
 included in operating expenses and that they should be 
 deducted from "Total Net Revenue" in the Income 
 Account. 
 
12 
 
 Accounting officers are requested to correspond with the 
 Bureau of Statistics and Accounts should question arise 
 with regard to the correct interpretation of any account, 
 since otherwise it will not be practicable to secure uni- 
 formity in the interpretation of the accounting rules herein 
 prescribed. 
 
 Henry C. Adams, 
 In cJiarge of Statistics and Accounts. 
 
CONTENTS. 
 
 GENERAL ACCOUNTS. 
 
 Account. Page. 
 
 I. Maintenance 19 
 
 II. Traffic Expenses 26 
 
 III. Transportation Expenses 28 
 
 ly. General Expenses^ 34 
 
 V. Charter Expenses 36 
 
 I. Maintenance. 
 
 A. Maintenance of Equipment — 
 
 WE 1. Superintendence 19 
 
 WE 2. Vessels— Repairs 20 
 
 WE 3. Vessels— Renewals 20 
 
 WE 4. Vessels — Depreciation 20 
 
 WE 5. Tugs and Lighters — Repairs 21 
 
 WE 6. Tugs and Lighters— Renewals 21 
 
 WE 7. Tugs and Lighters — Depreciation 22 
 
 WE 8. Shop Machinery and Tools 22 
 
 WE 9. Injuries to Persons 23 
 
 WE 10. Stationery and Printing 23 
 
 WE 11. Other Maintenance of Equipment Expenses 23 
 
 B. Maintenance of Terminals — 
 
 WE 12. Superintendence 23 
 
 WE 13. Docks, Wharves, Buildings, and Fixtures 24 
 
 WE 14. Injuries to Persons 25 
 
 WE 15. Stationery and Printing 25 
 
 WE 16. Other Maintenance of Terminals Expenses 26 
 
 II. Traffic Expenses. 
 
 WE 17. Superintendence 26 
 
 WE 18. Outside Agencies ,. . 27 
 
 WE 19. Fast Freight Lines 27 
 
 WE 20. Traffic Associations 27 
 
 WE21. Advertising 27 
 
 WE 22. Stationery and Printing 27 
 
 WE 23. Other Traffic Expenses 27 
 
 (13) 
 
14 
 
 III. Transportation Expenses. 
 
 A. Operation or Vessels — T&se- 
 
 WE 24. Superintendence 28 
 
 WE 25. Wages of Crews 28 
 
 WE 26. Fuel 29 
 
 WE 27. Lubrication 29 
 
 WE 28. Stationery and Printing 29 
 
 WE 29. Food Supplies - 29 
 
 WE 30. Other Supplies and Department Expenses 29 
 
 WE31. BarSupplies 30 
 
 WE 32. Lay-up Expenses 30 
 
 WE 33. Other Operation of Vessels Expenses 30 
 
 B. Operation of Terminals — 
 
 WE 34. Superintendence 30 
 
 WE 35. Salaries of Agents, Clerks, and Attendants 31 
 
 WE 36. Agency OflBce Expenses 31 
 
 WE 37. Stationery and Printing 31 
 
 WE 38. Stevedore and Wharf Labor 31 
 
 WE 39. Tugs and Lighters— Operation 32 
 
 WE 40. Switching, Lighterage, and Other Transfers 32 
 
 WE 41 . Light, Heat, Power, and Water 32 
 
 WE 42. Wharf Supplies and Expenses 32 
 
 WE 43. Other Operation of Terminals Expenses 32 
 
 0. Incidental Transportation Expenses — 
 
 WE 44. Loss and Damage — Freight 33 
 
 WE 45. Loss and Damage — Baggage 33 
 
 WE 46. Damage to Property 33 
 
 WE 47. Injuries to Persons 34 
 
 IV. General Expenses. 
 
 WE 48. Salaries and Expenses of General Officers 34 
 
 WE 49. Salaries and Expenses of Clerks and Attendants 35 
 
 WE 50. General Office Supplies and Expenses 35 
 
 WE 51. Law Expenses 35 
 
 WE 52. Insurance 35 
 
 WE 53. Pension and Relief Department Expenses 36 
 
 WE 54. Stationery and Printing 36 
 
 WE 55. Other General Expenses 36 
 
 V. Charter Expenses. 
 
 WE 56. Charters Involving Rent Exclusively 36 
 
 WE 57. Charters Involving Rent and Maintenance 37 
 
 WE 58. Charters Involving Rent, Maintenance, and Operation.. 37 
 
GENERAL INSTEUOTIONS, 
 
 1. Reserves for Depreciation. — The amounts 
 charged each month to operating expenses, representing 
 depreciation of property, should be credited to "Reserve 
 for Accrued Depreciation" accounts. When property is 
 abandoned or retired from service, these accounts should 
 be charged with amounts equal to those previously cred- 
 ited thereto with respect to the property abandoned 
 or retired. When integral parts of machinery, fixtures, 
 etc., of equipment are renewed, in such manner as will 
 tend to prolong the life of the equipment as a whole, 
 the cost of such renewals may also be charged to these 
 reserves to the extent of the amounts previously cred- 
 ited thereto with respect to such particular integral 
 parts. All other costs of renewals of parts should be 
 charged to repairs. 
 
 2. Replacements. — When any vessel, tug, lighter, or 
 other unit of property is abandoned or retired from 
 service and replaced, the substitute having substantially 
 the same capacity and expectation of life in service as the 
 abandoned property when in its best condition, the 
 "Reserve for Accrued Depreciation" account should be 
 debited with a proportion of the cost of the substitute 
 equal to the amount previously credited thereto with 
 respect to the property replaced, and the appropriate 
 maintenance account should be debited with the balance 
 of such cost, credit being given to the maintenance 
 account for net salvage from property withdrawn or 
 retired. 
 
 When any property is abandoned or retired from serv- 
 ice and replaced with property of like purpose but of 
 greater capacity or improved type, the excess cost of the 
 
 (15) 
 
16 
 
 substitute over the cost of replacing in kind the property 
 retired should be charged to the proper Investment 
 account. 
 
 3. Abandonments. — ^When any property is abandoned 
 or retired from service and not replaced, the cost (esti- 
 mated, if not known) should be credited to the Invest- 
 ment account ; the reserve for accrued depreciation should 
 be debited with an amount equal to the amounts previ- 
 ously credited thereto with respect to the property 
 abandoned or retired ; proper account should be taken 
 of the expenses incident to the retirement of the property 
 and of the salvage; and any adjustment necessary should 
 then be made in Profit and Loss. 
 
 4. Eetireo equipment held for disposition. — 
 Equipment permanently retired from service, but held 
 pending disposition, should be written out of service and 
 carried in an appropriate material account at salvage 
 value, estimated, if not known. 
 
 5. Distribution of charges for replacement of 
 abandoned property. — In case the amount chargeable 
 to Operating Expenses for replacement of property 
 abandoned is relatively large, and its inclusion in a car- 
 rier's operating expenses for a single year would unduly 
 burden those accounts for that year, a carrier may, if 
 so authorized upon application to the Interstate Com- 
 merce Commission, charge so much of the cost as may be 
 authorized to an account designated "Property Aban- 
 doned, Chargeable to Operating Expenses." The amount 
 so charged should thereafter be apportioned to the oper- 
 ating expenses of succeeding years, the number of which 
 v/iil be determined when permission to use the account 
 is given. 
 
 6. Definition of "Cost of replacing in kind." — 
 The term "Cost of replacing in kind," as here used, is to 
 be understood as the cost, at the current prices of labor 
 and material, of renewing property by the construction 
 or installation of other property substantially similar in 
 capacity, service, and accessories, and having a physical 
 
17 
 
 condition and an expectation of life in service equal to 
 that of the replaced property when acquired, or, if 
 improved after acquirement, when in its best condition. 
 An estimate based upon the current prices of material 
 identical with that of which the thing abandoned was 
 constructed should not be construed as being required, 
 particularly when such material is no longer obtainable 
 except at prohibitive prices and would not be used if a 
 renewal of the property without betterment were under- 
 taken. 
 
 46509°— 10 3 
 
TEXT OF CLASSIFICATION OF OPERATING EXPENSES OF 
 CARRIERS BY WATER. 
 
 I. MAIUTEirANOE. 
 
 A. MAINTENANCE OF EQUIPMENT. 
 
 WE 1. SUPERINTENDENCE. 
 
 This account should include: 
 
 Pay of Officers.— The pay of vice-presidents and other officers 
 directly in charge of or engaged' in the maintenance of equipment. 
 Pay of Clerks and Attendants. — The pay of clerks, drafts- 
 men, and attendants in offices of officers whose pay is charged to 
 this account. 
 
 Office and Other Expenses.— The rent of offices', the cost of 
 telephone and telegraph service; postage, heat; light, power, 
 water, ice, furniture, and other supplies for, and the care of, 
 offices of officers whose pay is charged to this account; incidental 
 office and traveling expenses of such officers and their clerks; 
 cost of. pro'visions for, and expenses of, special boats, when used 
 by them; premiums on fidelity bonds of such officers and their 
 employees, when assumed by the company; expenses of photo- 
 graphing vessels, except for advertising purposes; the cost of 
 drafting and engineering instruments and expenses of repairing 
 them, and the cost of supplies (except stationery and printing) 
 used by officers and employees whose pay is charged to this 
 account. 
 
 Note A. — 'When officers above enumerated have supervision over other 
 departments also, their pay and expenses and the pay and expenses of their 
 clerks and. attendants should be apportioned equitably among the depart- 
 ments over which they have supervision. 
 
 Note B. — 'When employees enumerated above are engaged in vi^ork not 
 chargeable to Maintenance of Equipment, their pay and expenses should 
 be charged to the specific work on which they are engaged. 
 
 Note C. — The rents included in the "Superintendence" accounts are those 
 of offices of minor importance, which are usually rented for a year or leas. 
 The rent of general offices and structures of major importance, which, when 
 not owned by carriers, are ordinarily leased for a period of years, should be 
 included in the Income Account. 
 
 (19) 
 
20 • 
 
 WE 2." VESSELS— REPAIRS. 
 
 This account should include the cost of all material used (less 
 salvage) and labor expended in repairs to vessels and to their 
 furniture, fixtures, etc. Wien practicable this account should be 
 subdivided as follows: 
 
 (a) Repairs to Hulls. 
 
 (6) Repairs to Machinery. 
 
 (c) Repairs to Furniture, Fixtures, etc. 
 
 Note A. — The cost of repairs resulting from casualties should be charged 
 to casualty accounts when covered by insurance and to insurance reserves, to 
 the extent of accruals therein, when such reserves have been provided for 
 damage to such property. Any part of such cost not recoverable irom under- 
 writers or chargeable to insurance reserves should be charged to repair 
 accounts. 
 
 Note B.— This account may include for each month a proportion of the 
 total amount authorized or approximated for general and extraordinary 
 repairs, necessary adjustments to be made to include in each year's accounts 
 the actual expenditures for maintenance in that year. 
 
 Note C. — The cost of replacing minor parts of machinery, fixtures, etc., 
 should be charged to this account. In the General Instructions are con- 
 tained directions relative to charging depreciation reserves with the cost 
 of certain renewals of important parts of machinery, fixtures, etc. 
 
 WE 3. VESSELS— RENEWALS. 
 
 This account should include the cost of replacing in kind vessels 
 condemned, destroyed, or sold and replaced, less: 
 
 (1) Amounts previously charged for depreciation up to the date 
 of retirement. 
 
 (2) The net scrap value of salvage or the net amount received 
 from the sale of vessels retired. 
 
 Whenever practicable this account should be subdivided as 
 follows: 
 (a) Renewals of Hulls. 
 (6) Renewals of Machinery. 
 (c) Renewals of Furniture, Fixtures, etc. 
 
 WE 4. VESSELS— DEPRECIATION. 
 
 This account should include a monthly charge representing de- 
 preciation on vessels. This monthly charge should be computed 
 at a certain rate per cent on the original cost (estimated, if not 
 known), record value, or purchase price of vessels to provide a 
 reserve which will represent their expired value or depreciation. 
 The charges made should equal the amounts estimated to be 
 necessary to cover obsolescence and inadequacy; such wear and 
 tear as have accrued during the month and are not provided for 
 by current repairs; and also to cover the cost of property destroyed 
 by such casualties as are not provided for by insurance . Whenever 
 practicable this account should be subdivided as follows: 
 
21 
 
 (a) Depreciation on HuUa, 
 
 (6) Depreciation on Machinery. 
 
 (c) Depreciation on Furniture, Fixtures, etc. 
 
 Note. — Until otherwise directed charges to this account should be based 
 upon a rule determined to be equitable according to the carrier's experience 
 and best sources of information as to the actual average of accruals of such 
 expenses. 
 
 WE 5. TUGS AND LIGHTERS— REPAIRS. 
 
 This account Bhould include the cost of material used (less 
 salvage) and labor expended in repairs to tugs, lighters, and mis- 
 cellaneous floating equipment, and repairs to their furniture, fix- 
 tures, etc. Whenever practicable this account should be subdi- 
 vided aa follows: 
 
 (a) Repairs to Hulls. 
 
 (6) Repairs to Machinery. 
 
 (c) Repairs to Furniture, Fixtures, etc. 
 
 Note A.— The cost of repairs resulting from casualties should be charged 
 to casualty accounts when covered by insurance and to insurance reserves, 
 to the extent of accruals therein, when such reserves have been provided for 
 damage to such property. Any part of such cost not recoverable from under- 
 writers or chargeable to insurance reserves should be charged to repair 
 accounts. 
 
 Note B.— This account may include for each month a proportion of the total 
 amount authorized or approximated for general and extraordinary repairs, 
 necessary adjustments to be made to include in each year's accounts the 
 actual expenditures for maintenance in that year. 
 
 Note C. — The cost of replacing minor parts of machinery, fixtures, etc., 
 should be charged to this account. In the General Instructions are con- 
 tained directions relative to charging depreciation reserves with the cost of 
 certain renewals of important parts of machinery, fixtures, etc. 
 
 WE 6. TUGS AND LIGHTERS— RENEWALS. 
 
 This account should include the cost of replacing in kind tugs, 
 lighters, and miscellaneous floating equipment, condemned, de- 
 stroyed, or sold, and replaced, less: 
 
 (1) Amounts previously charged for depreciation up to the date 
 
 of retirement; 
 
 (2) The net scrap value of salvage or the net amount received 
 
 from the sale of tugs, lighters, and other floating equip- 
 ment retired. 
 
 Whenever practicable this account should be subdivided as 
 follows: 
 
 (a) Renewals of Hulls. 
 
 (6) Renewals of Machinery. 
 
 (c) Renewals of Furniture, Fixtures, etc. 
 
22 
 
 WE 7. TUGS AND LIGHTERS— DEPRECIATION. 
 
 This account should include a monthly charge representing 
 depreciation on tugs, lighters, and miscellaneous floating equip- 
 ment. This monthly charge should be computed at a certain rate 
 per cent on the original cost (estimated, if not known), record 
 value, or purchase price of such equipment, to provide a reserve 
 which will represent its expired value or depreciation. The 
 charges made should equal the amounts estimated to be neces- 
 sary to cover obsolescence and inadequacy; such wear and tear as 
 have accrued during the month and are not provided for by current 
 repairs; and also to cover the cost of property destroyed by such 
 casualties as are not provided for by insurance. Whenever practi- 
 cable this account should be subdivided as follows: 
 (a) Depreciation on Hulls. 
 (6) Depreciation on Machinery, 
 (c) Depreciation on Furniture, Fixtures, etc. 
 
 Note. — Until otherwise directed charges to this account should be based 
 upon a rule determined to be equitable according to the carrier's experience 
 and best sources oj information as to the actual average ol accruals of such 
 expenses. 
 
 WE 8. SHOP MACHINERY AND TOOLS. 
 This account should include: 
 
 Shops. — The cost of material used (less salvage) and labor ex- 
 pended in repairing and renewing tools and machinery in machine 
 shops, carpenter shops, blacksmith shops, forges, paint shops, and 
 all other shops. 
 
 Note A.— The cost of new tools and machinery (less salvage) used in 
 shops described above, when purchased to replace others previously in use, 
 should be charged to this account. 
 
 Note B.— The cost of repairing and renewing heating boilers should be 
 charged to account WE 13, "Docks, Wharves, Buildings, and Fixtures." 
 
 PowBK Plants. — The cost of material used (less salvage) and 
 labor expended in repairing and renewing steam and water plant 
 equipment, including boilers, engines and engine parts, appli- 
 ances, and fixtures; piping and steam fitting, including valves, 
 separators, water and sewer connections, and water meters. The 
 cost of material used (less salvage) and labor expended in re- 
 pairing and renewing electric equipment, including generators 
 and generator parts, dynamos, switchboards, cables, feeder ter- 
 minals, and wiring in connection therewith; storage batteries, 
 transformers, boosters, rheostats, circuit breakers, meters, and 
 other electric equipment. 
 
 Note.— This account may include tor each month a proportion of the total 
 amount authorized or approximated lor general and extraordinary repairs, 
 necessary adjustments to be made to include in each year's accounts the actual 
 expenditures for maintenance in that year. 
 
23 
 
 WE 9. INJURIES TO PERSONS. 
 
 This account should include all expenses (less any amount re- 
 covered through accident insurance) incident to injuries to persona 
 occurring directly in connection with maintenance of equipment; a 
 proportion of the pay and expenses of physicians and surgeons and 
 of claim adjusters and their clerks; the expenses of nursing and 
 hospital attendance; medical and surgical supplies; artificial limbs; 
 funeral expenses; railway, boat, and carriage fares for conveying 
 injured persons and attendants; donations or contributions to hos- 
 pitals in which employees are cared for; the pay and expenses of 
 employees and others while attending coroners' inquests, while 
 engaged as witnesses in lawsuits in connection with personal injury 
 cases, or when called in consultation in relation to the adjustment 
 of claims coming under this head. 
 
 Note A.— Expenses not otherwise provided for in connection with the 
 conduct of suits should be charged to account WE 51, "Law Expenses," but 
 the amount of final judgments, including plaintiffs' court costs, should be 
 charged to this account. 
 
 Note B.— If contributions are made to hospitals, the total thereof should 
 be distributed among the "Injuries to Persons" accounts, as follows; 25 per 
 cent to Maintenance of Equipment, 25 per cent to Maintenance of Termi- 
 nals, and 50 per cent to Transportation Expenses. 
 
 Note C. — The pay and expenses of claim adjusters, clerks, and others that 
 can not be actually allocated to particular cases should be apportioned equally 
 to the expenses of the claims on which they are engaged. 
 
 WE 10. STATIONERY AND PRINTING. 
 
 This account should include the cost of stationery, stationery 
 supplies, printing, books, and blank forms used in connection with 
 maintenance of equipment. 
 
 Note.— The cost of dictionaries, periodicals, technical books, etc., should 
 be charged to account WE 1, " Superintendence." 
 
 WE 11. OTHER MAINTENANCE OP EQUIPMENT EX- 
 PENSES. 
 This account should include all expenses incident to the main- 
 tenance of equipment not properly chargeable to other accounts 
 under Maintenance of Equipment. 
 
 B. MAINTENANCE OF TERMINALS. 
 WE 12. SUPERINTENDENCE. 
 This account should include: 
 
 Pay op Officers. — ^The pay of vice-presidents and other officers 
 directly in charge of or engaged in the maintenance of terminals. 
 Pay of Clerks and Attendants. — The pay of clerks, drafts- 
 men, and attendants in offices of officers whose pay is charged to 
 this account. 
 
24 
 
 Office and Other Expenses. — The rent of offices, the cost of 
 telephone and telegraph service; postage, heat, light, power, water, 
 ice, furniture, and other supplies for, and the care of, offices of offi- 
 cers whose pay is charged to this account; incidental office and 
 traveling expenses of such officers and their clerks ; cost of provisions 
 for, and expenses of, special boats, when used by them; premiums 
 on fidelity bonds of such officers and their employees, when as- 
 sumed by the company; expenses of photographing buildings 
 and structures, except for advertising purposes; the cost of draft- 
 ing and engineering instruments and expenses of repairing them, 
 and the cost of supplies (except stationery and printing) used by 
 officers and employees whose pay is charged to this account. 
 
 Note A.— When officers above enumerated have supervision over other 
 departments also, their pay and expenses and the pay and expenses of 
 their clerks and attendants should be apportioned equitably among the 
 departments over which they have supervision. 
 
 Note B. — When employees enumerated above are engaged in work not 
 chargeable to Maintenance of Terminals, their pay and expenses should 
 be charged to the specific work on which they are engaged. 
 
 Note C. — The rents included in the "Superintendence" accounts are those 
 of offices of minor importance, which are usually rented for a year or less. 
 The rents of general offices and other structures of major importance, which, 
 when not owned by carriers, are ordinarily leased for a period of years, should 
 be included in the Income Account. 
 
 WE 13. DOCKS, WHARVES, BUILDINGS, AND FIXTURES. 
 
 This account should include all expenses incident to repairing and 
 renewing docks, wharves, buildings, and fixtures, used in the opera- 
 tions of a carrier, and maintaining grounds and approaches con- 
 nected therewith, as follows: 
 
 Docks and Wharves. — The cost of material used (less salvage) 
 and labor expended in repairing and renewing docks, wharves, piers, 
 and other landings; pontoons, slips, sea walls, bulkheads, jetties, 
 dry docks, and inclines thereto, including filling, strengthening, 
 bracing, and painting; the expenses of operating pile drivers, tugs, 
 barges, and floats, including the wages of crews and the cost of all 
 tools and supplies used while engaged on such work; the cost of crib 
 work, racks, and caissons, constructed for preserving the depth of 
 water secured by dredging; the cost of filling and dredging; the cost 
 of guard and other piling for protection from damage by drift or ice, 
 cutting ice around docks and wharves to prevent damage, pro- 
 tection against fire, and other expenses of like nature. 
 
 Buildings. — The cost of material used (less salvage) and labor 
 expended in repairing and renewing buildings and platforms, 
 overhead footbridges not public highways, inclines to buildings, 
 canopies or sheds not adjoining the buildings but used as parts 
 thereof, and similar buildings and structures located upon wharves 
 
25 
 
 and piers; the cost of removing old buildings and of removing 
 snow from the roofs of buildings, protection against fire, and like 
 expenses. 
 
 Fixtures and Machinery. — The cost of repairing and renewing 
 fixtiu-es (less salvage), such as bunks, counters, railings, shelving, 
 washbowls, and water coolers, etc., when built in as parts of struc- 
 tures; the cost of material used (less salvage) and labor expended 
 in repairing and renewing machinery and structures used in con- 
 nection with buildings, such as air compressors, ash buckets, ash 
 hoists, coal buckets, cranes, derricks, and other like appliances. 
 
 Note.— This account may include tor eaoli month a proportion of the total 
 amount authorized or approximated for general and extraordinary repairs, 
 the necessary adjustments to he made to include in each year's accounts 
 the actual expenditures for maintenance in that year. 
 
 WE 14. INJURIES TO PERSONS. 
 
 This account should include all expenses (less any amount re- 
 covered through accident insurance) incident to injuries to persons 
 occurring dii'ectly in connection with maintenance of terminals; 
 a proportion of the pay and expenses of physicians and surgeons 
 and of claim adjusters and their clerks; the expenses of nursing 
 and hospital attendance; medical and surgical supplies; artificial 
 limbs; funeral expenses; railway, boat, and carriage fares for con- 
 veying injured persons and attendants; donations or contributions 
 to hospitals in which employees are cared for ; the pay and expenses 
 of employees and others while attending coroners' inquests, while 
 engaged as witnesses in lawsuits in connection with personal injury 
 cases, or when called in consultation in relation to the adjustment 
 of claims coming under this head. 
 
 Note A.— Expenses not otherwise provided for in connection with the 
 conduct of suits should be charged to account WE 61, "Law Expenses," hut 
 the amount of final judgments, including plaintiffs' court costs, should be 
 charged to this account. , 
 
 Note B.— If contributions are made to hospitals, the total thereof should 
 be distributed among the "Injuries to Persons" accounts as follows: 26 per 
 cent to Maintenance of Equipment, 25 per cent to Maintenance of Terminals, 
 and 60 per cent to Transportation Expenses. 
 
 Note C— The pay and expenses of claim adjusters, clerks, and others that 
 can not be actually allocated to particular cases should be apportioned equally 
 to the expenses of the claims on which they are engaged. 
 
 WE 15. STATIONERY AND PRINTING. 
 
 This account should include the cost of stationery, stationery 
 supplies, printing, books, and blank forms used in connection 
 with the maintenance of terminals. 
 
 Note.— The cost of dictionaries, periodicals, technical books, etc., should 
 be charged to account WE 12, "Superintendence." 
 
26 
 
 WE 16. OTHER MAINTENANCE OF TERMINALS EXPENSES. 
 This account should include all expenses incident to the mainte- 
 nance of terminals not properly chargeable to other accounts 
 under Maintenance of Terminals. 
 
 Explanatory Note.— Clearing Account " Repair Shop Ex- 
 penses."— Expenses at repair shops, such as for heating, light- 
 ing, power, water, watchmen, and incidentals that can not be 
 charged directly to work done, should be charged to a clearing 
 account called "Repair Shop Expenses." Such shop expenses 
 should be periodically apportioned upon the basis of the direct 
 charges for labor to the various accounts. Carriers are permitted to 
 make monthly apportionments on the basis of an equitable per- 
 centage rate, provided the adjustments necessary to close this 
 account are made at the end of the year. 
 
 II. TEAFIIO EXPENSES. 
 WE 17. SUPERINTENDENCE. 
 
 This account should include: 
 
 Pay of Officers. — The pay of vice-presidents or other oflficers 
 directly in charge of the traffic department and of other officers 
 engaged in securing and directing traffic and in the preparation 
 and distribution of tariffs, classifications, rate and division sheets, 
 etc. 
 
 Pay of Clerks and Attendants. — The pay of clerks and 
 attendants in offices of officers whose pay is charged to this 
 account. 
 
 Office and Other Expenses. — The rent of offices, the cost of 
 telephone and telegraph service; postage, heat, light, power, 
 water, ice, furniture, and other supplies (except stationery and 
 printing), such as atlases, directories, maps, and periodicals for, 
 and the care of, offices of officers whose pay is charged to this 
 account; incidental office and traveling expenses of such officers 
 and their clerks; cost of provisions for, and expenses of,- special 
 boats, when used by them; premiums on fidelity bonds of such 
 officers and their employees, when assumed by the company. 
 
 Note a. — The pay and expenses of officers and of their clerks and attend- 
 ants engaged exclusively in soliciting traffic should be charged to account 
 WE 18, "Outside Agencies." 
 
 Note B. — When officers above enumerated have supervision over other 
 departments also, their pay and expenses and the pay and expenses of their 
 clerks and attendants should be apportioned equitably among the depart- 
 ments over which they have supervision. 
 
 Note C. — The rents included in the "Superintendence" accounts are those 
 of offices of minor importance, which are usually rented for a year or less. The 
 rents of general offices and other structures of major importance, which, when 
 not owned by carriers, are ordinarily leased for a period of years, should be 
 included in the Income Account. 
 
27 
 
 WE 18. OUTSIDE AGENCIES. 
 
 This account should include: 
 
 The pay of officers and general, commercial, city, district, and 
 other agents engaged exclusively in soliciting traffic; employees 
 of their offices, traveling agents, and solicitors wherever located, 
 including commissions for services rendered in connection with 
 either freight or passenger business (except commissions paid to 
 port or station agents in lieu of salary). 
 
 The cost of furniture, supplies (including stationery and print- 
 ing), heat, light, ice, water, telephone and telegraph service, post- 
 age; office, traveling, and other expenses of such agencies. 
 
 WE 19. FAST FREIGHT LINES. 
 
 This account should include the expenses of fast freight or 
 dispatch organizations. 
 
 WE 20. TRAFFIC ASSOCIATIONS. 
 
 This account should include the expenses of traffic associations, 
 including membership fees in boards of trade and commercial and 
 other like associations. 
 
 WE 21. ADVERTISING. 
 
 This account should include the pay and expenses of advertising 
 agents; the cost of bill posting, etc.; the cost of printing, publish- 
 ing, and distributing time-tables, folders, and notices for general 
 distribution; printing advertising matter; advertising in newspa- 
 pers and periodicals for the purpose of securing traffic; bulletin 
 boards, cards, cases, display cards, dodgers, folders, handbills, 
 . maps, pamphlets, posters, racks, frames, photographs, views, and 
 postage and express charges on advertising matter; donations to 
 carnivals and other expenses for attracting traffic. 
 
 WE 22. STATIONERY AND PRINTING. 
 
 This account should include the cost of all stationery, stationery 
 supplies, printing, books, and blank forms used in connection with 
 traffic expenses (except for outside agencies); the cost of printing 
 freight and passenger tariffs, classifications, and rate and division 
 sheets. 
 
 Note. — The cost of dictionaries, periodicals, technical books, etc., should 
 be charged to account WE 17, " Superintendence." 
 
 WE 23. OTHER TRAFFIC EXPENSES. 
 
 This account should include all expenses in connection with 
 securing and directing traffic not properly chargeable to other 
 accounts under Traffic Expenses. 
 
28 
 
 III, TEAUSPOETATION EXPENSES. 
 A. OPERATION OF VESSELS. 
 
 WE 24. SUPERINTENDENCE. 
 
 This account should include: 
 
 Pay of Officeks. — The pay of vice-presidents and other officers 
 in charge of or engaged in the operation of vessels. 
 
 Pay of Clerks and Attendants. — The pay of clerks and at- 
 tendants in offices of officers whose pay is charged to this account. 
 
 Office and Other Expenses. — The rent of offices, the cost of 
 telephone and telegraph service; postage, heat, light, power, water, 
 ice, furniture, and other supplies (except stationery and printing), 
 such as atlases, directories, maps, and periodicals for, and the care 
 of, offices of officers whose pay is charged to this account; inci- 
 dental office and trayeling expenses of such officers and their clerks; 
 cost of provisions for, and expenses of, special boats, when used 
 by them; premiums on fidelity bonds of such officers and their 
 employees, when assumed by the company. 
 
 Note A.— When officers above enumerated have supervision over other 
 departments also, their pay and expenses and the pay and expenses of their 
 clerks and attendants should be apportioned equitably among the depart- 
 ments over which they have supervision. 
 
 Note B. — The rents included in the "Superintendence" accounts are those 
 of oSBces of minor importance, which are usually rented for a year or less. The 
 rents of general offices and other structures of major importance, which, when 
 not owned by carriers, are ordinarily leased for a period of years, should be 
 iucluded in the Income Account. 
 
 WE 25. WAGES OF CREWS. 
 
 This account should include: 
 
 Deck Department. — The pay of captains, pilots, chief officers, 
 mates, sailors, wireless telegraph operators, and all other employees 
 of the deck department. 
 
 Engineers' Department. — The pay of chief engineers, assist- 
 ant engineers, electricians, oilers, firemen, coal passers, and all 
 other employees of the engineers' department. 
 
 Stewards' Department. — The pay of pursers, stewards, stew- 
 ardesses, cooks, pantrymen, waiters, porters, and all other em- 
 ployees of the stewards' department. 
 
 Note A,— When bar attendants are employed, and it is necessary or desir- 
 able to segregate bar expenses, the pay of bar attendants may be stated in a 
 subaccount under "Stewards' Department." 
 
 Note B.— When vessels are laid up for repairs or betterments, and the crews 
 are retained, the pay of crews should )« charged to the appropriate repairs or 
 betterments accounts, as the case may be. "W hen vessels are laid up on 
 account of the requirements of the service and not undergoing repairs or bet- 
 
29 
 
 terraents, the pay of the crews should be charged to acconnt W E 32, " Lay-up 
 Expenses." 
 
 Note C— This account refers to expenses of vessels while in line service. 
 While they are used in operation of terminals, or by officers, the expenses of 
 operation should be charged to appropriate accounts. 
 
 WE 26. FUEL. 
 
 This account should include the cost on board vessels (including 
 trimming) of coal, oil, wood, and other fuel used for generating 
 power, heat, or light. 
 
 Note A.— This account refers to expenses of vessels while in line service. 
 While they are used in operation of terminals, or by oIBcers, the expenses 
 of operation should be charged to appropriate accounts. 
 
 Note B.— Fuel used for cooking should be charged to account WE 30, 
 "Other Supplies and Department Expenses." 
 
 WE 27. LUBRICATION. 
 
 This account should include the cost on board vessels of all oil, 
 grease, tallow, graphite, and other material furnished for lubri- 
 cating purposes. 
 
 Note.— This account refers to expenses of vessels while in line service. 
 While they are used In operation of terminals, or by officers, the expenses 
 of operation should be charged to appropriate accounts. 
 
 WE 28. STATIONERY AND PRINTING. 
 
 This account should include the cost of stationery, stationery- 
 supplies, printing, books, and blank forms used in connection 
 with the operation of vessels. 
 
 Note A.— This account refers to expenses of vessels while In line service. 
 While they are used in operation of terminals, or by ofQcers, the expenses of 
 operation should be charged to appropriate accounts. 
 
 Note B. — The cost of dictionaries, periodicals, technical books, etc., should 
 be charged to account WE 24, "Superintendence." 
 
 WE 29. FOOD SUPPLIES. 
 
 This account should include the cost on board vessels of all food 
 supplies furnished to the stewards' department. 
 
 Note. — This account refera to expenses of vessels while in line service. 
 While they are used in operation of terminals, or by officers, the expenses of 
 operation should be charged to appropriate accounts. 
 
 WE 30. OTHER SUPPLIES AND. DEPARTMENT EXPENSES. 
 
 This account should include: 
 
 Deck Department. — The cost of all supplies furnished to the 
 deck department, and the incidental expenses of employees whose 
 wages are charged to the deck department. 
 
 Engineers' Department. — The cost of all supplies, other than 
 fuel and lubricants, furnished to the engineers' department; water 
 furnished to ships, and the incidental expenses of employees whose, 
 wages are charged to the engineers' department. 
 
30 
 
 Stewards' Department. — The cost of all supplies, other than 
 food and bar, furnished to the stewards' department; laundry for 
 ships, and the incidental expenses of employees whose wages are 
 charged to the stewards' department. 
 
 Note. — This account refers to expenses of vessels while in line service. 
 , While they are used in operation of terminals, or by officers, the expenses of 
 operation should be charged to appropriate accounts. 
 
 WE 31. BAR SUPPLIES. 
 
 This account should include the cost of all wines, liquors, beers, 
 ales, mineral waters, cigars, cigarettes, tobacco, and other bar sup- 
 plies. 
 
 Note A.— This account refers to expenses of vessels while in line service. 
 While they are used in operation of terminals, or by officers, the expenses of 
 operation should be charged to appropriate accounts. 
 
 Note B.— When bar attendants are employed, and it is necessary or desir- 
 able to segregate bar expenses, the pay of bar attendants may be stated in a 
 subaccount under "Stewards' Department" of account WE 25, ''Wages of 
 Crews." 
 
 WE 32. LAY-UP EXPENSES. 
 
 This account should include the pay of crews and all other trans- 
 portation expenses incurred on account of floating equipment when 
 laid up, and not undergoing repairs or betterments. 
 
 Note A. — This account refers to expenses of vessels while in line service. 
 While they are used in operation of terminals, or by officers, the expenses of 
 operation should be charged to appropriate accounts. 
 
 Note B. — When floating equipment is laid up and undergoing repairs or 
 betterments, the pay of crews and other incidental expenses should be charged 
 to the appropriate repairs or betterments accounts. 
 
 WE 33. OTHER OPERATION OF VESSELS EXPENSES. 
 
 This account should include all expenses incident to the opera- 
 tion of vessels, but not properly chargeable to other accounts under 
 "Operation of Vessels," such as ballast and payments for the tow- 
 age of ships into harbors. 
 
 B. OPERATION OF TERMINALS. 
 
 WE 34. SUPERINTENDENCE. 
 
 This account should include: 
 
 Pay op Officers. — The pay of vice-presidents and other officers 
 in charge of or engaged in the operation of terminals. 
 
 Pay of Clerks and Attendants. — The pay of clerks and at- 
 tendants in offices of officers whose pay is charged to this account. 
 
 Office and Other Expenses. — The rent of offices, the cost of 
 telephone and telegraph service; postage, heat, light, power, water, 
 ice, furniture, and other supplies (except stationery and printing). 
 
31 
 
 such as atlases, directories, maps, and periodicals for, and the care 
 of, offices of officers whose pay is charged to this account; inci- 
 dental office and traveling expenses of such officers and their clerks; 
 cost of provisions for, and expenses of, special boats, when used by 
 them; premiums on fidelity bonds of such officers and their em- 
 ployees, when assumed by the company. 
 
 Note A.— When oBBcers above enumerated have supervision over other 
 departments also, their pay and expenses and the pay and expenses of their 
 clerks and attendants should be apportioned equitably among the depart- 
 ments over which they have supervision. 
 
 Note B.— The rents included in the " Superintendence" accounts are those 
 of offices of minor importance, which are usually rented for a year or less. The 
 rents of general offices and other structures of major importance, which, when 
 not owned by carriers, are ordinarily leased for a period of years, should be 
 included in the Income Account. 
 
 WE 35. SALARIES OF AGENTS, CLERKS, AND ATTENDANTS. 
 This account should include the pay of port or station agents, 
 office and wharf clerks, and attendants, as follows: 
 (o) Agents and office employees. 
 
 (6) Wharf employees except stevedores and other laborers pro- 
 vided for in account WE 38, "Stevedore and Wharf Labor." 
 
 WE 36. AGENCY OFFICE EXPENSES. 
 
 This account should include the expenses of telephone and tele- 
 graph service; postage, heat, light, power, water, ice, furniture, 
 and other supplies (except stationery and printing), such as 
 atlases, directories, maps, and periodicals, for offices of agents and 
 others whose pay is charged to account WE 35, ' ' Salaries of 
 Agents, Clerks, and Attendants;" incidental office and traveling 
 expenses of such agents and their clerks; premiums on fidelity 
 bonds of such agents and their employees, when assumed by the 
 company. 
 
 WE 37. STATIONERY AND PRINTING. 
 
 This account should jnclude the cost of all stationery, stationery 
 supplies, printing, books, and blank forms used in connection with 
 the operation of terminals, including waybills, tickets, etc. 
 
 Note.— The cost of dictionaries, periodicals, technical books, etc., should be 
 charged to account WE 34, "Superintendence." 
 
 WE 38. STEVEDORE AND WHARF LABOR. 
 This account should include: 
 
 (a) The pay of stevedores, foremen, and longshoremen engaged 
 directly in the loading and unloading of vessels, and all payments 
 for labor in connection with the handling, trimming, and stowing 
 of cargoes in vessels, including payments to individuals and com- 
 panies engaged to handle cargoes by contract. 
 
32 
 
 (6) The pay of laborers on wharves when engaged in piling, 
 tiering, and handling freight, except in the actual loading and 
 unloading of vessels; also in loading and unloading baggage. 
 
 WE 39. TUGS AND LIGHTERS— OPERATION. 
 
 This account should include all expenses in connection with the 
 operation of tugs, lighters, and other floating equipment employed 
 in terminal operations, including superintendence, wages, fuel, 
 water, lubricants, food supplies, wharfage, and labor engaged in 
 handling lightered cargoes, except directly to or from ships. 
 
 WE 40. SWITCHING, LIGHTERAGE, AND OTHER TRANSFERS. 
 This account should include all payments made to other indi- 
 viduals or companies for lightering, switching, or transferring 
 freight, teaming, cost of operating team transfers owned by the car- 
 rier, and other expenses in connection with the transfer of freight 
 not provided for in account WE 39, " Tugs and Lighters — Opera- 
 tion," or in account WR 1, " Freight Revenue." 
 
 WE 41. LIGHT, HEAT, POWER, AND WATER. 
 
 This account should include a pro rata proportion of expenses of 
 light, heat, power, and water used in the operation of terminals 
 (except in agents' or superintendents' offices), whether purchased 
 or produced by the company. When a carrier operates its own 
 plants for the production of light, heat, power, or water, the total 
 cost of such operation may be charged to a clearing account and 
 apportioned, on an equitable basis, to the various accounts pro- 
 vided in the classification. 
 
 Note.— The charges to this account may be distributed among tlie several 
 subaccounts suggested by the title. 
 
 WE 42. WHARF SUPPLIES AND EXPENSES. 
 
 This account should include supplies used by and expenses of 
 wharf employees, such as meals furnished wharf employees, ad- 
 vertising for wharf employees; cost or rent of equipment for watch- 
 men, firemen, and police; uniforms for wharf employees; supplies 
 for coopering, marking, and tagging freight; car standards, binders, 
 etc., and expenses, not chargeable as repair and renewal items, 
 incident to keeping wharves in proper condition. 
 
 WE 43. OTHER OPERATION OF TERMINALS EXPENSES. 
 
 This account should include all expenses incident to the opera- 
 tion of terminals not properly chargeable to other accounts under 
 "Operation of Terminals," including harbor masters' fees, quar- 
 antine expenses, and customhouse and other port charges. 
 
33 
 
 C. INCIDENTAL TRANSPORTATION EXPENSES. 
 WE 44. LOSS AND DAMAGE— FREIGHT. 
 
 This account should include all amounts, not recoverable through 
 insurance, paid for loss, damage, delays, or destruction of freight 
 (including company's material) ; uncollectible freight charges paid 
 other carriers on lost, misrouted, damaged, or refused shipments; 
 the cost of repacking and boxing damaged merchandise and other 
 property; the pay and expenses of employees or others engaged 
 as adjusters and in detecting thieves; and the pay and expenses of 
 employees or others while engaged as witnesses in lawsuits in 
 connection with loss and damage cases. 
 
 To this account should be credited insurance recovered and net 
 amounts received from the sale of unclaimed and damaged freight. 
 
 Note A. — Expenses, not otherwise provided for, in connection with the 
 conduct of suits should be charged to account WE 51, "Law Expenses," but 
 the amount of the final judgments, including plaintiffs' court costs, should 
 be charged to this account. 
 
 Note B. — The pay and expenses of claim adjusters, clerks, and others, that 
 can not be actually allocated to particular cases, should be apportioned equally 
 to the expenses of the claims on which they are engaged. 
 
 WE 45. LOSS AND DAMAGE— BAGGAGE. 
 
 This account should include all amounts, not recoverable through 
 insurance, paid for loss, damage, delays, or destruction of baggage 
 and other personal property; services and expenses of einployees 
 or others while engaged as adjusters and while engaged as witnesses 
 in lawsuits in connection with cases involving loss or damage to 
 
 To this account should be credited insurance recovered and net 
 
 amounts received from the sale of unclaimed and damaged baggage. 
 
 Note A. — Expenses, not otljerwise provided for, in connection with the 
 
 conduct of suits should be charged to account WE 51, "Law Expenses," but 
 
 the amount of the final judgments, including plaintiffs' court costs, should 
 
 be charged to this account. 
 
 Note B.— The pay and expenses of claim adjusters, clerks, and others, that 
 can not be actually allocated to particular cases, should be apportioned equally 
 to the expenses of the claims on which they are engaged. 
 
 WE 46. DAMAGE TO PROPERTY. 
 
 This account should include all amounts, not recoverable through 
 insurance, paid for damages to or destruction of property owned by 
 other^ individuals or companies and not in the carrier's service 
 (except freight and baggage entrusted to the carrier for transporta- 
 tion); also pay and expenses of employees or others while engaged 
 as adjusters and while engaged as witnesses in lawsuits arising out 
 of damage to property. 
 
 Note A.— Expenses, not otherwise provided for, in connection with the 
 conduct of suits should be charged to account WE 51, "Law Expenses," but 
 the amount of final judgments, including plaintiffs' court costs, should be 
 charged to this account. 
 
 Note B. — The pay and expenses of claim adjusters, clerks, and others, that 
 can not be actually allocated to particular cases, should be apportioned equally 
 to the expenses of the claims on which they are engaged. 
 
34 
 
 WE 47. INJURIES TO PERSONS. 
 
 This account should include all expenses (less any amount re- 
 covered through accident insurance) incident to injuries to persons 
 occurring directly in connection with transportation; a proportion 
 of the pay and expenses of physicians and surgeons and of claim 
 adjusters and their clerks ; expenses of nursing and hospital attend- 
 ance; medical and surgical supplies; artificial limbs; funeral ex- 
 penses; railway, boat, and carriage fares for conveying injured 
 persons and attendants; donations or contributions to hospitals in 
 which employees are cared for; the pay and expenses of employees 
 and others while attending poroners' inquests, while engaged aa 
 witnesses in lawsuits in connection with personal injury cases, or 
 when called in consultation in relation to the adjustment of claims 
 coming under this head. 
 
 Note A. — Expenses, not otherwise provided for, in connection with the 
 conduct of suits should be charged to account WE 51, "Law Expenses," 
 but the amount of final judgments, including plaintifls' court costs, should be 
 charged to this account. 
 
 Note B.— If contributions are made to hospitals, the total thereof should 
 be distributed among the "Injuries to Persons" accounts as follows: 25 per 
 cent to Maintenance of Equipment, 25 per cent to Maintenance of Terminals, 
 and 50 per cent to Transportation Expenses. 
 
 Note C— T,he pay and expenses of claim adjusters, clerics, and others that 
 can not be actually allocated to particular cases should be apportioned 
 equally to the expenses of the claims on which they are engaged. 
 
 IV. GENEEAL EXPENSES. 
 
 WE 48. SALARIES AND EXPENSES OF GENERAL OFFICERS. 
 
 This account should include: 
 
 Salaries. — The pay of chairman of board, president, vice-presi- 
 dent, secretary, treasurer, comptroller, auditor, freight claim agent, 
 purchasing agent, and all assistants or subordinate officials of the 
 above heads of departments, and all other officials whose duties 
 are of such a general character that they can not be specifically 
 charged to "Superintendence" under Maintenance, TraflSc Ex- 
 penses, Transportation Expenses, or to account WE 51, "Law 
 Expenses;" salaries and fees of receivers. 
 
 Expenses. — Traveling and other expenses of officers named 
 above, cost of provisions for, and expenses of, special boats when 
 used by them; membership fees of general officers in transporta- 
 tion and other associations. 
 
 Note.— When officers above enumerated have supervision over several 
 departments, their salaries and expenses should, when possible, be appor- 
 tioned equitably among the departments over which they have supervision. 
 
35 
 
 WE 49. SALARIES AND EXPENSES OF CLERKS AND ATTEND- 
 ANTS. 
 This account should include: 
 
 Salaries. — The pay of clerks and attendants in offices of the 
 general officers specified in account WE 48, " Salaries and Expenses 
 of General Officers." 
 
 Expenses. — Traveling and other expenses of employees named 
 above. 
 
 Note. — When general officers bave supervision over several departments, 
 the salaries and expenses of their clerics and attendants should, when possi- 
 ble, be apportioned among the departments over which they have juris- 
 diction. 
 
 WE 50. GENERAL OFFICE SUPPLIES AND EXPENSES. 
 
 This account should include the rent of offices (except general 
 offices), the coat of telephone and telegraph service; postage, heat, 
 light, power, water, ice, furniture, and other supplies (except sta- 
 tionery and printing), such as atlases, directories, maps, and peri- 
 odicals for, and the care of, offices of officers whose pay is charged 
 to this account; premiums on fidelity bonds of such officers and 
 their employees, when assumed by the company. 
 
 Note. — The rents included above are those of offices of minor importance, 
 which are usually rented for a year or less. The rent of general offices and 
 other structures of major importantance, which, when not owned by carriers, 
 are ordinarily leased for a period of years, should be included in the Income 
 Account. 
 
 WE 51. LAW EXPENSES. 
 
 This account should include: 
 
 The pay of officers directly in charge of the law department; of 
 all counsel, solicitors, attorneys, their clerks and attendants; fees 
 and retainers for services of all attorneys not regular employees of a 
 carrier. 
 
 All office and traveling expenses of officers specified above and 
 of their clerks; cost of law books, printing briefs, legal forms, testi- 
 mony, reports, etc. 
 
 Cost of suits and payments of special fees, notarial and witness 
 fees not provided for under "Injuries to Persons," "Loss and 
 Damage," "Damage to Property," or other accounts; fees paid 
 arbitrators for settlement of disputed questions, and all law and 
 court expenses not provided for elsewhere. 
 
 WE 52. INSURANCE. 
 
 This account should include all premiums (except reinsurance 
 premiums) paid by a carrier to individuals or companies, amounts 
 paid to an insurance fund or credited to reserves, for insuring the 
 
36 
 
 property of a carrier, or that intrusted to it for transportation or 
 storage, against loss or damage by fire or other casualty, and for 
 insuring a carrier against loss by reason of liability for injuries to 
 persons, occurring through accident or otherwise. 
 
 Note A. — When it is found desirable to accrue insurance expenses, this 
 account should he charged monthly with a proper proportion of the annual 
 payments for insurance purposes. 
 
 Note B. — The premiums paid by a carrier to its insurance fund should be 
 credited on its books to an " Insurance Reserve" account, to which the amount 
 of all claims for damages to the property covered by such insurance should be 
 charged. To that account should be charged all reinsurance premiums paid 
 insurance companies, and to it should be credited all amounts recovered from 
 insurance companies for damage to property reinsured by them. 
 
 WE 53. PENSION AND RELIEF DEPARTMENT EXPENSES. 
 
 This account should include all pensions or gratuities paid to 
 retired employees, and all pension and relief department expenses. 
 
 WE 54. STATIONERY AND PRINTING. 
 
 This account should include the cost of all stationery, stationery 
 supplies, passes, printing, books, and blank forms used in connec- 
 tion with general offices, including contracts, leases, bonds, stock 
 certificates, and all stationery and printing of the law department, 
 except cost of printing briefs, legal forms, testimony, reports, etc. 
 Note.— The cost of dictionaries, periodicals, technical books, except law 
 books, etc., should be charged to account WE 50, "General Office Supplies 
 and Expenses." 
 
 WE 55. OTHER GENERAL EXPENSES. 
 
 This account should include all expenses of a general nature not 
 properly chargeable to other accounts under General Expenses, 
 such as the cost of publishing notices of stockholders' meetings, of 
 elections of directors, of annual reports in newspapers, of divi- 
 dends declared, and of other corporate and financial notices of a 
 general character; fees and expenses paid to directors; contribu- 
 tions on account of catastrophies or epidemics; donations to local 
 ifire departments; the cost of exchange on checks or drafts, etc. 
 
 V. OHAETEE EXPENSES. 
 WE 56. CHARTERS INVOLVING RENT EXCLUSIVELY. 
 
 This account should include all amounts paid by a carrier for , 
 the hire or rent of vessels or other floating equipment when, Tinder 
 the conditions of the charters, the payments are solely for the rent 
 of the equipment. 
 
 Note.— When charters include both rent and the expense of mainte- 
 nance, or rent and the expense of maintenance and operation, the rental 
 portion, when separable, "should also be included in this account. 
 
37 
 
 WE 57. CHARTERS INVOLVING RENT AND MAINTENANCE. 
 This account should include all amounts paid by a carrier for 
 the hire or rent of vessels or other floating equipment when, under 
 the conditions of the charters, the payments are for the rent and 
 maintenance of the equipment. 
 
 Note,— This account is to be used when the expenses of maintenance are 
 not separabla from the rents; when tliey are separable, the rental portion 
 only should be included in account WE 56, "Charters Involving Kent 
 Exclusively," and the appropriate accounts should be charged with the 
 cost of maintenance. 
 
 WE 58. CHARTERS INVOLVING RENT, MAINTENANCE, AND 
 OPERATION. 
 This account should include all amounts paid by a carrier for 
 the hire or rent of vessels or other floating equipment when, under 
 the conditions of the charters, the payments are for the rent, main- 
 tenance, and operation of the equipment. 
 
 Note. — This account is to be used when the expenses of maintenance and 
 operation are not separable from the rents; when they are separable^ the 
 rental portion only should be included in account WE 56, "Charters 
 Involving Rent Exclusively," and the appropriate accounts should be 
 charged with the cost of maintenance and operation. 
 
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Cornell University Library 
 HE605 .U562 1910 
 
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