K^*> ^^^- ./:/^^'/'''-^^^-VV CORNELL UNIVERSITY LIBRARY ^ f UNIFORM SYSTEM OF ACCOUNTS % FOR ELECTRIC RAILWAYS PRESCRIBED BY THE INTERSTATE COMMERCE COMMISSION IN ACCORDANCE WITH SECTION 20 OF THE ACT TO REGULATE COMMERCE ISSUE OF 1914 Effective on July 1, 1914 WASHINGTON GOVERNMENT PRINTING OFFICE 1914 Cornell University Library The original of this bool< 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/details/cu31924032485199 UNIFORM SYSTEM OF ACCOUNTS FOR ELECTRIC RAILWAYS W,^. PRESCRIBED BY THE "^ INTERSTATE COMMERCE COMMISSION IN ACCORDANCE WITH SECTION 20 OF THE ACT TO REGULATE COMMERCE ISSUE OF 1914 Effective on July 1, 1914: WASHINGTON GOVERNMENT PRINTING OFFICE 1914 s CgA-.^^^ THE INTERSTATE COMMERCE COMMISSION. James S. Haklan, of Illinois. JuDSON C'. Clements, of Georgia. J^DGAK E. Clark, of Iowa. Charles C. McChord, of Kentucky. Balthasar H. Meter, of Wisconsin. Henry C. Hall, of Colorado. WiNTHROP M. Daniels, of New Jersey. George B. McGintt, Secretary. Cornell University Library HE4351 .U61 1914 Uniform system of accounts for electric oiin 3 1924 032 485 199 CONTENTS. Order of the Commission 5 Introductory letter 7 Operating expense accounts - 9 Condensed schedules of accounts. . . , 13 General instructions 17 Text pertaining to accounts Nos. 1 to 100 21 Operating revenue accounts 43 General instructions I 45 Text pertaining to accounts Nos. 101 to 119 47 Income accounts : 51 Form of income statement 53 General instructions 55 Text pertaining to accounts Nos. 201 to 225 57 Profit and loss accounts 63 General instructions 65 Text pertaining to accounts Nos. 301 to 317 67 General balance-sheet accounts 71 Form of general balance-sheet statement 73 General instructions 75 Text pertaining to accounts Nos. 401 to 451 77 Road and equipment accounts 89 General instructions 91 Text pertaining to accounts Nos. 501 to 550 95 Index 107 3 ORDER. At a General Session of the INTERSTATE COMMERCE COMMISSION, held at its office in Washington, D. C, on the 28th day of May, 1914. The subject of a Uniform System of Accounts to be prescribed for and kept by electric railways being under consideration, the foUo-"'- ing order was entered : It is ordered, That the Uniform System of Accounts for Electric Railways, with the text pertauiuig thereto, embodied ia printed form to be hereafter known as the Issue of 1914, 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 Commis- sion be filed in its archives, and a second copy thereof, in like manner authenticated, in the ofiice of the Division of Carriers' 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 Uniform System of Accounts for Electric Railways, with the text pertaining thereto, be, and the same is hereby, prescribed for the use of electric railways subject to the provisions of the Act to Regulate Commerce as amended, in the keeping and recording of their accounts; that each and every such carrier and each and every receiver or operating trustee of any such carrier be required to keep all accounts in conformity therewith; and that a copy of the said 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 any such carrier or any receiver or oper- ating trustee of any such carrier may subdivide any primary account established in the said issue (as permitted in the general instructions contained in the said issue); 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 such subpri- mary accounts set up or such assignments made by any such carrier or by any receiver or operating trustee of any such carrier do not impair the integrity of the accounts hereby prescribed. It is further ordered. That in order that the basis of comparison with previous years be not destroyed, any such carrier or any receiver 5 6 OKDEE. or operating trustee of any such carrier may, during the twelve months from the time that the said issue becomes effective, keep and maintain, in addition to the accounts hereby prescribed, such portion or portions of its present accounts 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 prescribed 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, in addition to the accounts hereby prescribed, may, unless otherwise ordered, keep any temporary or experimental accounts the purpose of which is to develop the efficiency of operation: Provided, however, That such temporary or experimental accounts shall not impair the integrity of any primary account hereby prescribed. It is further ordered, That July 1, 1914, be, and is hereby, fixed as the date on which the said Uniform System of Accounts for Electric Railways shall become effective. By the Commission: [seal.] George B. MoGintt, Secretary. INTKODUCTORY LETTER. Interstate Commerce Commission, • Division of Carriers' Accounts, Washington, May 28, 1914. To Accounting Officers of Electric Railways: This Uniform System of Accounts for Electric Railways super- sedes the classifications of expenditures for road and equipment, operating expenses, and operating revenues which became effective January 1, 1909, and all conflicting instructions contained in Ac- counting Bulletin No. 7. In formulating this Uniform System of Accounts for Electric Rail- ways, containing the first revised issues of the classifications of operating expense, operating revenue, and road and equipment ac- counts, and also the first issues of the classifications of income, profit and loss, and general balance-sheet accounts, it has been the purpose to enlist the cooperation of representatives of electric railways and of the various State commissions. Accounting Series Circular No. 41, containing a tentative system of accounts, was submitted to the representatives of all such carriers of record in this office and to each of the State commissions for criticisms and suggestions, and careful consideration has been given to all replies received. In the preparation of the revision of the accounting rules con- tained in this system of accounts for electric railways the Commis- sion has had the cooperation of the Committee on a Standard Classi- fication of Accounts of the American Electric Railway Accountants' Association. Special attention is directed to the provisions for depreciation. The use of account No. 40, "Depreciation of equipment," is manda- tory. Until further notice the use of accounts No. 25, " Depreciation of way and structures," and No. 50, "Depreciation of power plant buildings and equipment," is optional with the carrier. In order that uniformity in the application of the provisions of these classifications may be secured, accounting officers are requested to submit all questions of doubtful interpretation to this office for consideration and decision, Fred W. Swenet, Chief Examiner of Accounts. 7 OPERATING EXPENSE ACCOUNTS. CONDENSED SCHEDULES. Page. 1. Classes of carriers 13 2. Accounts for Class B carriers 13 3. Accounts for Class C carriers 14 GENERAL INSTRUCTIONS. 1. Operating expenses defined 17 2. Auxiliary operations 17 3. Exclusion of auxiliary operations expenses 17 4. General account for power 17 5. Unaudited bills and vouchers 18 6. Distribution of delayed items 18 7. Subprimary accounts for steam operations and water lines 18 8. Salvage and value of ma,terial removed 18 9. Insurance recovered 18 10. Property retired and replaced 18 11. Distribution of charges for property retired and replaced 19 12. Property retired and not replaced 19 13. Cost of work 19 14. Depreciation 19 GENERAL ACCOUNTS. I. Wat and structures 21 II. Equipment 27 III. Power 32 IV. Conducting transportation 35 V. Traffic , 38 VI. General and miscellaneous 38 VII. Transportation fob investment — Ck 42 PRIMARY ACCOUNTS. |To be kept by electric railways of Class A.{ I. Wat and structures — 1. Superintendence of way and structures 21 2. Ballast 21 3. Ties 21 4. Rails 22 5. Rail fastenings and joints 22 6. Special work 22 7. Underground construction 22 8. Track and roadway labor 22 9 10 OPEEATIlirG EXPENSES. I. Wat and structures — Continued. „' 9. Miscellaneous track and roadway expenses 10. Paving 23 11. Cleaning and sanding track „„ 12. Removal of snow and ice „ . 13. Tunnels and subways „ . 14. Elevated structures and foundations 15. Bridges, trestles, and culverts 16. Crossings, fences, and signs 17. Signal and interlocking apparatus 18. Telephone and telegraph lines 19. Miscellaneous way expenses 20. Poles and fixtures ^^ 21. Underground conduits 22. Distribution system 23. Miscellaneous electric line expenses 26 24. Buildings, -fixtures, and grounds 26 25. Depreciation of way and structures 27 26. Other operations — Dr 27 27. Other operations — Or 27 28. Equalization — Way and structures 27 II. Equipment — 29. Superintendence of equipment 27 30. Passenger and combination cars 28 31. Freight, express, and mail cars 28 32. Service equipment 28 33. Electric equipment of cars 29 34. Locomotives 29 35. Floating equipment 29 36. Shop equipment 30 37. Shop expenses 30 38. Vehicles and horses 30 39. Miscellaneous equipment expenses 30 40. Depreciation of equipment 30 41. Equipment retired 31 42. Other operations — Dr 31 43. Other operations — Cr 31 44. Equalization — Equipment 31 III. Power — 45. Superintendence of poww 32 46. Power plant buildings, fixtures, and grounds 32 47. Power plant equipment 32 48. Substation equipment 33 49. Transmission system 33 50. Depreciation of power plant buildings and equipment 33 51. Equalization — Power 00 52. Power plant employees qa 53. Fuel for power 04 54. Water for power 04 55. Lubricants for power „ . 56. Miscellaneous power plant supplies and expenses 04 57. Substation employees 04 58. Substation supplies and expenses „. 59. Power purchased 04 OPEBATING EXPENSES. 11 III. PowEK — Continued. Page. 60. Power exchanged — Balance 34 61. Power transferred — Credit 35 62. Other operations — Or , 35 IV. Conducting transpohtation^ 63. Superintendence of transportation 35 64. Passenger conductors, motormen, and trainmen 35 65. Freight and express conductors, motormen, and trainmen 35 66. Miscellaneous car-service employees 36 67. Miscellaneous car-service expenses 36 68. Station employees 36 69. Station expenses 36 70. Carhouse employees 36 71. Carhouse expenses 36 72. Operation of signal and interlocking apparatus 36 73. Operation of telephone and telegraph lines 37 74. Operation of floating equipment 37 75. Operation of steam locomotives 37 76. Freight and express collection and delivery 37 77. Loss and damage 37 78. Other transportation expenses 38 V. Tkaftic — 79. Superintendence and solicitation 38 80. Advertising 38 81. Parks, resorts, and attractions 38 82. Miscellaneous traffic expenses 38 VI. General and miscellaneous — 83. Salaries and expenses of general officers 38 84. Salaries and expenses of general office clerks 39 85. General office supplies and expenses 39 86. Law expenses 39 87. Belief department expenses 39 88. Pensions and gratuities 39 89. Miscellaneous general expenses 39 90. Valuation expenses 40 91. Amortization of franchises 40 92. Injuries and damages 40 93. Insurance 41 94. Stationery and printii^ 41 95. Store expenses 41 96. Garage and stable expenses 41 97. Rent of tracks and facilities 41 98. Rent of equipment 42 99. Other operations— Dr 42 100. Other operations — Cr 42 VII. Transportation for investment — Oe 42 CONDENSED SCHEDULES OF ACCOUNTS. 1. Classes of Carriers. — For the purpose of effectively applying the principles of this classification of operating expenses to the accounts of all carriers, provision is made for dividing the carriers subject to the orders of the Commission into classes, as follows: Class A. Companies having average annual operating revenues of more than $1,000,000. Class B. Companies having average annual operating revenues of more than $250,000, but not in excess of $1,000,000. Class C. Companies having average annual operating revenues not in excess of $250,000. Companies of Class A are required to keep all the primary accounts as provided for in the text of this classification (see pp. 21 to 42). Companies of Class B have the option of using the classification for Class A or the classification provided for Class B carriers in the schedule here following. Companies of Class C have the option of usiag any one of the classifications provided for Classes A, B, and C. Carriers using the classification for Class A shall apply the account numbers prescribed. Carriers using the condensed classifications shall adopt the numbers used in the follow- ing schedules, including those hyphenated to show the merging of accounts. 2. Accounts for Class B Carriers. — For Class B carriers — those having annual revenues of more than $250,000, but not in excess of $1,000,000 — the complete schedule of accounts by titles follows, the preceding numerals showing in each instance the primary account or accounts the contents of which ars included under the title named in connection therewith. I. Way and structures: 1 Superintendence of way and structures. 2-12 Maintenance of track and roadway. 13-19 Other maintenance of way. 20 Poles and fixtures. 21 Underground conduits. 22 Distribution system. 23 Miscellaneous electric line expenses. 24 Buildings, fixtures, and grounds. 25 Depreciation of way and structures. 26 Other operations — Dr. 27 Other operations — Cr. 28 Equalization — Way and structures. II. Equipment: 29 Superintendence of equipment. 30-32 Maintenance of cars. 33 Electric equipment of cars. 34 Maintenance of locomotives. 35-39 Miscellaneous equipment expenses. 40 Depreciation of equipment. 41 Equipment retired. 42 Other operations — Dr. 43 Other operations — Or. 44 Equalization — Equipment. 13 14 OPERATING EXPENSES. III. Power: 45 Superintendence of power. 46 Power plant buildings, fixtures, and grounds. 47 Power ;plant equipment. 48 Substation equipment. 49 Transmission system . . . 50 Depreciation of power plant buildings and equipment. 51 Equalization — Power. 52 Power plant employees. 63 Fuel for power. 54 Water for power. 55 Lubricants for power. 56 Miscellaneous power plant supplies and expenses. 57 Substation employees. 58 Substation supplies and expenses. 59 Power purchased. 60 Power exchanged — Balance. 61 Power transferred — Credit. 62 Other operations — Cr. IV. Conducting transportation: 63 Superintendence of transportation. 64 Passenger conductors, motormen, and trainmen. 65 Freight and express conductors, motormen, and trainmen. 66-67 Miscellaneous car-service employees and expenses. 68-69 Station employees and expenses. 70-71 Carhouse employees and expenses. 72-73 Signal, interlocking, telephone, and telegraph systems. 74 Operation of floating equipment. 75 Operation of steam locomotives. 76 Freight and express collection and delivery. 77 Loss and damage. 78 Other transportation expenses. V. Traffic: 79-82 Traffic expense. VI. General and miscellaneous: 83-84 Salaries and expenses of general officers and general office clerks. 85 General office supplies and expenses. 86 Law expenses. 87 Relief department expenses. 88 Pensions and gratuities. 89 Miscellaneous general expenses. 90 Valuation expenses. 91 Amortization of franchises. 92 Injuries and damages. 93 Insurance. 94 Stationery and printing. 95 Store expenses. 96 Garage and stable expenses. 97 Rent of tracks and f aciUtiea. 98 Rent of equipment. 99 Other operations — Dr. 100 Other operations — Cr. VII. Transportation for investment — Cr. 3. Accounts for Class C Carriers.— For Class C carriers— those having annual revenues not in excess of $250,000— the complete schedule of accounts by titles follows, the preceding numerals, as in the foregoing schedule, showing in each the primary account or accounts the contents of which are included under th panying title: I. Way and structures: 1 Superintendence of way and structures. 2-19 Maintenance of way. 20-23 Maintenance of electric Unes. 24 Buildings, fixtures, and groimds. 25 Depreciation of way and structures. 26 Other operations — Dr. 27 Other operations — Or. 28 Equalization — Way and structures. IS as case accom- OPEEATING EXPENSES. 15 II. Equipment: 29 Superintendence of equipment. 30-32 Maintenance of cars. 33 Maintenance of electric equipment of cars. 34 Maintenance of locomotivea. 35-39 Miscellaneous equipment expenses. 40 Depreciation of equipment. 41 Equipment retired . 42 Other operations — ^Dr. 43 Other operations — Or. 44 Equalization — Equipment. III. Power: 45 Superintendence of power. 46 Power plant buildings, fixtures, and grounds. 47-49 .Maintenance of power equipment. 50 Depreciation of power plant buildings and equipment. 51 Equalization — Power. 52 Power plant employees. 53 Fuel for power. 54-56 Other power supplies and expenses. 57-58 Substation employees, supplies, and expenses. 59 Power purchased. 60 Power exchanged — Balance. 61 Power transferred — Credit. 62 Other operations — Or. IV. CONDUCTINO TKANSPORTATION : 63 Superintendence of transportation . 64-65 Conductors, motormen, and trainmen. 66-78 Miscellaneous transportation expenses. V. Traffic: 79-82 Traffic expenses. VI. General and miscellaneous: 83-89 General expenses. 90 Valuation expenses. 91 Amortization of franchises. 92 Injuries and damages. 93 Insurance. 94 Stationery and printing. 95-96 Store, garage, and stable expenses. 97 Rent of tracks and facilities. 98 Rent of equipment. 99 Other operations — Dr. 100 Other operations — Cr. VII. Transportation por investment — Cb. GENERAL INSTRUCTIONS. 1. Operating Expenses Defined. — The term operating expenses means such expenses as are necessary to the maintenance and operation of the property used in transportation service (including services incident thereto), the rendering of serv- ices, and the collection of revenues in connection therewith. 2. AuxiLiAKT Operations. — Electric railways operating facilities or rendering services other than those incident to transportation by rail (the cost of the property used in such operations being included in the road and equipment accounts) shall treat such operations or services as auxiliary operations. Carriers shall keep separate revenue and expense accounts for each auxiliary operation conducted, and shall include the aggregate of the revenues and the aggregate of the exp/enses of auxiliary operations in the respective accounts provided therefor in the income classification. If, for example, the carrier conducts a general power, light, heat, or other business not incident to transportation (the cost of the property used therein being included in the accounts for investment in road and equipment) the revenues and expenses of each such operation shall be reported in income accounts No. 202, "Auxiliary opera- tions — Revenues," and No. 214, "Auxiliary operations — Expenses," respectively. Revenues and expenses in connection with the maintenance and operation of properties provided for in general balance-sheet account No. 404, "Miscellaneous physical property," shall be included in income account No. 205, "Net income from miscellaneous physical property," or No. 219, "Net loss on miscellaneous physical property," as may be appropriate. 3. Exclusion op Auxiliary Operations Expenses. — Expenses in connection with maintenance and operation of plant and equipment used in auxiliary opera- tions such as the electric power, light, heat, or other departments, or the proportion of expenses chargeable thereto, shall be excluded from the railway expenses by the use of accounts designated "Other operations — Or." Similarly, it expenses of the railway department, other than those for maintenance and operation of power plant buildings and equipment, are kept in the accounts of the power, light, or other department, the railway department's proportion ojE such expenses shall be charged to the various accounts in this classification provided for "Other operations — Dr." If, however, a carrier furnishes power, light, or heat only incidentally, such inci- dental revenues and expenses may be included in the railway operating revenues and expenses. 4. General Account for Power. — For the purpose of bringing together, under one general account, the cost of maintaining and operating power plant buildings and equipment, the new general account Power has been provided. All expenses for maintaining and operating power plant buildings and equipment necessary to the production of power and all expenses incident to the purchase of power shall be included in the appropriate primary accounts under this general account, irrespective of the manner in which the power is used. Carriers rendering other utility services, such as furnishing power for lighting, heating, or other commercial purpose, shall equi- tably apportion the cost of power, as shown by this general account, between the rail- way and other utility departments. The charges to the other departments shall be cleared through account No. 62, "Other operations — Cr." This segregation of the 42130°— 14 2 17 18 OPEEATTNG EXPENSES. mamtenance and operation expenses incident to the production of power will permit a more accurate comparison of the expenses for maintenance of way and structures, maintenance of equipment, and transportation expenses, between carriers which pro- duce their own power and carriers which use purchased power; and it will also afford a better comparison of the statistics of carriers which furnish only a transportation service and those which furnish other utility service, such as power, light, and heat. 5. Unaudited Bills and Vouchers.— When bills covering operating revenue or operating expense items are not received in time for audit, and when vouchers are not made in time for inclusion in the operating accounts for the month in which the transactions occur, the items may be estimated and in such form charged or credited to operating accounts, and credited or charged to operating reserves, the necessary adjustments being made later when the bills and vouchers are taken into the car- rier's accounts. 6. Distribution of Delayed Items. — J)eZo!/«rf ifcms are items representing trans- actions which occurred before the current year. When no provision has been made through entries in the accounts of this classification for anticipating delayed items chargeable or creditable to the accounts herein, and the amount of any such item is relatively so large that its inclusion in the accounts for a single year would seriously distort those accounts, the carrier, when so authorized, upon application to the Inter- state Commerce Commission, shall distribute to Profit and Loss so much of the amount as may be authorized. The application to the Commission for exceptional accounting for delayed items shall give full particulars concerning each item and the reasons which, in the carrier's judgment, indicate the need for a special accounting rule. 7. SuBPRiMARY Accounts fob Steam Operations and Water Lines. — If a carrier operates a steam division, or has both electric and steam operations, and de- sires to keep the expenses of such operations separate, it may set up as subprimary accounts the appropriate primary accounts of the classification of operating expenses of steam roads. (See accounts Nos. 34 and 75.) If the carrier operates a water line or ferries and desires to keep the expenses of such operations separate, it may set up as subprimary accounts the appropriate primary accounts. of the classification of operating expenses of carriers by water. (See accounts Nos. 35 and 74.) 8. Salvage and Value of Material Removed. — As used in these classifica- tions, the terms salvage and valv£ of material removed include the value to the carrier of material recovered or removed in the processes of repairiag, renewing, replacing, or abandoning roadway, structures, and equipment. If the material recovered or removed is again used or expected to be used by the carrier, the salvage value shall be based upon fair prices for the particular kinds and grades of material. If the material is sold, the net amount received from the sale represents the salvage. 9. Insurance Recovered. — ^Insurance recovered on property damaged or de- stroyed shall be credited to the account to which the cost of the repair or replace- ment is charged. To avoid unduly affecting the charges to Operating Expenses, relatively large amounts of insurance recovered upon damaged or destroyed property which is repaired or replaced may be credited to a suspense account, to which the cost of the repair or replacement shall then be charged to the extent of the in- surance credited thereto. It the property destroyed is not replaced, the insurance shall be treated as salvage and deducted from the amoimt chargeable to Profit and Loss Accoimt when the property is written out of the road and equipment accounts Insurance recovered in connection with personal injuries shall be credited to account No. 92, "Injuries and damages." Recoveries under fidelity bonds shall be credited to the account charged with the loss. 10. Property Retired and Replaced.— When property is abandoned, demolished, or otherwise retired from service, and replaced, the ledger value (estimated if not known) of the property retired shall be credited to the proper road and equipment OPEEATING EXPENSES. 19 account; account No. 443, "Accrued depreciation-^Road and equipment," shall be charged with the amount carried therein with respect to such property; proper account shall be taken of salvage and insurance; and the remainder, together with the expense incident to the abandonment, shall be charged to the appropriate operating expense accounts. The cost of the new property shall be charged to the proper road and equipment account. 11. Distribution of Charges for Property Retired and Replaced. — In case the amount chargeable to Operating Expenses for property retired and replaced is relatively large and its inclusion would seriously distort the expense accounts for a single year the carrier, if so authorized by the Commission, may charge the amount thereof to balance-sheet account No. 419, "Property abandoned chargeable to Operating Expenses," and distribute it thereafter in accordance with the provisions of that account to the operating expenses of succeeding years. 12. Property Retired and Not Replaced. — ^When property other than equipment (which is provided for by account No. 41, "Equipment retired ") is abandoned, demol- ished, or otherwise retired from service and not replaced, the ledger value of the property retired shall be credited to the proper road and equipment accoimt; account No. 443, "Accrued depreciation — Road and equipment," shall be charged with the amount carried therein with respect t» such property; proper account shall be taken of salvage and insurance; and the remainder, together with the expenses incident to the retirement, shall then be charged to Profit and Loss. 13. Cost of Work. — The cost of work chargeable to the maintenance accounts includes other carriers' freight charges, inspection, contract work, assessments tor maintenance, and cost of privileges in connection with the work specified in the text of the several accounts. 14. Depreciation. — Depreciation accoimts in which to include monthly charges to cover depreciation of way and structures, equipment, power plant buildings, and power plant equipment are provided in order that carriers may create reserves which will meet or reduce the amounts otherwise chargeable to Operating Expenses or to Profit and Loss Account to cover the cost of the renewal or retirement of property. Such .depreciation charges should be upon a basis determined to be equitable according to the carrier's experience and best sources of information aa to the actual accruals of current loss from depreciation. Depreciation charges with respect to property or equipment shall cease when the difference between the ledger value (estimated if not known) and the estimated scrap value shall have been credited to the depreciation reserve account. A statement of the bases used by the carrier tor com- puting these charges shall be included in its annual report to the Commission. Commencing July 1, 1914, carriers shall accrue depreciation on equipment (included in accounts Nos. 530 to 535), but the accrual of depreciation on way and structures, power plant buildings, and power plant and substation equipment is left optional with the carrier until such time as the Commission shall direct otherwise. When equipment (included in accounts Nos. 530 to 535) is retired from service and proper charges for depreciation have not been made during its life, the ledger value of such equipment, less salvage and depreciation accrued to the date of retirement, shall be charged as follows: That proportion of the actual loss from depreciation equitably assignable to the period prior to July 1, 1914, shall be charged to Profit and Loss and the remainder shall be charged to operating expense account No. 41, "Equipment retired.*! TEXT PERTAINING TO OPERATING EXPENSE ACCOUNTS. I. WAY AND STRUCTURES. 1. SUPERINTENDENCE OF WAY AND STRUCTURES. This acoount shall include salaries and office and other expenses of officers and their assistants when directly in charge of maintenance of way and structures, including chief engineer, engineer of maintenance of way, superintendent of elec- tric line, superintendent of buildings, architect, division engineer, roadmasters, and office and field forces; cost of repairing drafting and engineering instruments; cost of supplies used by employees whose salaries are charged to this account; and office rent, cost of repairing rented offices, cost of repairing furniture, and miscellaneous office expenses, when separate offices not in general office build- ings are maintained for officers whose salaries are charged to this account. Note A. — When employees designated above are engaged in work not chargeable to Way and Structures, their salaries and expenses shall be charged to the specific wort on which engaged. Note B. — ^When employees designated above have supervision over other departments also, their salaries and expenses shall be apportioned equitably among the departments over which they have jurisdiction. Note C— It is not intended that any portion ol the expenses of general offices shall be charged to this account. The office expenses of employees designated above who have offices in general office buildings shall be included In the appropriate primary accounts under General and Miscel- laneous. 2. BALLAST. This account shall include expenses incident to the purchase and production of ballast used for maintenance; purchase price of gravel, stone, slag, cinders, sand, and other material used for ballast, including freight charges, if any; pay- ments for gravel and quarry rights and privileges; cost of tracks and electric line in gravel pits; expenses of sinking test holes, stripping, blasting, and loading; and other expenses in connection with production of ballast. Note A. — ^In case of ballast produced, a clearing account may be opened in order to determine the unit of cost which Is to be used in arriving at the monthly charge to Operating Expenses on account of ballast used. Note B.— The cost of labor delivering, unloading, and putting ballast into track shall be charged to acoount No. 8, "Track and roadway labor." 3. TIES. This account shall include the cost of cross, switch, bridge, and other ties used in repairing all tracks. Note A. — The cost of labor for unloading, distributing, and putting ties in track, and the cost of picking up and concentrating or disposing of the ties removed, shall be charged to account No. 8, "Track and roadway labor." Note B. — The excess cost of metal or concrete ties applied in place of wooden ties over the cost of replacing wooden ties shall be charged to road and equipment account No. 506, "Ties." 21 22 OPERATING EXPENSES. 4. RAILS. This account shall include the cost of rails used in repairing main and repair tracks, sidings and spurs, and tracks in tunnels, station yards, shop and otner yards; on piers, wharves, track scales, inclines, bridges, trestles, and culverts; in carhouses, shops, and storehouses; and on transfer tables and turntables. Kails in plain curves shall be charged to this account and not to account JNo. 6, " Special work. ' ' To this account shall be credited the value of material removed. Note A -The cost of labor for unloading, distributing, and laying rails in track, and the cost oJ picking up and concentrating the rails removed, shall be charged to account No. 8, "Track and roadway labor." Note B.— The excess cost of heavier or improved rails applied for renewals over the original cost of rails removed shall be charged to road and equipment account No. 607, "Rails, rail fastenings, and joints." Note C— Guard rails used in connection with the renewal of special work shall be charged to account No. 6, "Special work." 5. RAIL FASTENINGS AND JOINTS. This account shall include the cost of rail fastenings and joints, such as fish- plates, braces, tie plates, tie-rods, nuts, bolts, spikes, and welded joints, used for repairs of all tracks. To this account shall be credited the value of material removed. Note A.— The cost of labor unloading, distributing, and applying rail fastenings and joints and the cost of picking up and concentrating rail fastenings and joints removed shall be charged to accoimt No. 8, "Track and roadway labor." Note B. — The entire cost (exclusive of carrier's own labor) of welded joints Installed under contract shall be charged to this account. Note C. — The excess cost of heavier or improved rail fastenings and joints used for renewals over the original cost of fastenings and joints removed shall be charged to road and equipment account No. 507, "Rails, rail fastenings, and joints." 6. SPECIAL WORK. This account shall include the cost of material used in repairing special work, including steam and street railroad crossings, crossovers, curves, frogs, run-ofts, switches, contacts and wiring for automatic switches, switch stands and locks, switch mates, and turnouts. To this account shall be credited the value of material removed. Note.— The cost of labor in connection with this work shall be charged to accoimt No. 8, "Track and roadway labor." 7. UNDERGROUND CONSTRUCTION. This account is to be used only by railways operated by underground electric contact system or by cable. It shall include the cost of material used in repair- ing yokes, concrete work, manhole frames and covers, slot rails, drain pipes, pulleys, and sheaves, and other fixtures and appurtenances peculiar to under- ground electric or cable construction. To this account shall be credited the value of material removed. Note A.— The cost of labor in connection with this work shall be charged to account No 8 "Track and roadway labor." ' Note B.— The cost of repairing and renewing track rails, track-raU fastenings and joints electric contact rails and insulators, and cables of cable raUways shaU not be charged to this account 8. TRACK AND ROADWAY LABOR. This account shall include the cost of labor used in unloading, distrib f and placing ballast; relaying ties; repairing and relaying raUe, rail fastenine' "^ d joints, special work, and underground construction; also labor used in a^^ aligning, surfacing, and gauging tracks; repairing sewer and drain tiles anTd ^' OPEBATING EXPENSES. 23 age catch-basina; cleaning and repairing tile and open ditches; protecting banks by retaining walls, riprap, piling, piers, dikes, or other means; patrolling, inspect- ing, and watching track; clearing track of weeds; removing sand, debris, and flood waterfrom tracks; trimming trees along tracks; and other miscellaneous track and roadway labor, including wages of blacksmiths and helpers in track shops. 8. MISCELLANEOUS TRACK AND ROADWAY EXPENSES. This account shall include the cost of roadway tools when chargeable to Oper- ating Expenses; material used in repairing tools, velocipedes, hand and push cars, implements, flags, lanterns, etc., used when repairing track and roadway; ma- terials used in weeding tracks and right of way; materials used in removing flood water from tracks; coal and supplies for track shops; material used in repair of right-of-way ditches; material for repairing catch basins for drainage purposes; and material used in repairing retaining walls, riprap, piling, piers, dikes, or other means for protecting banks; also any other material, supplies, and inci- dental expenses that are not properly chargeable to any of the other accounts covering maintenance of track and roadway. To this account shall be credited the value of material removed. 10. PAVING. This account shall include the cost of labor and material used in repairing gran- ite, wood, brick, macadam, asphaltum, and other paving; also cost of hauling and distributing material and of removing old material. Repairs of street paving required by municipalities in connection with road- way and track, and assessments for maintenance of paving; also payments for permission to open pavement, and cost of tearing up and replacing paving in connection with repairs shall be charged to this account. To this account shall be credited the value of material removed. 11. CLEANING AND SANDING TRACK. This account shall include the cost of labor and material used in watering, sprinkling, and oiling roadway; in cleaning, greasing, and sanding tracks; and in cleaning conduits of underground electric or cable systems; also cost of sand and of hauling, drying, and distributing same; cost of track brooms and other clean- ing and sanding tools and apparatus; and cost of other supplies and expenses incident to the work. Note A.— Repairs of sprinkler and sand cars used in connection with this work shall be charged to account No. 32, "Serrice equipment." Repairs of harness and wagons used in connection with this work shall be charged to account No. 38, "Vehicles and horses." Note B. — Cost of sprinkling rendered necessary by repairs or construction of track or paving shall bo charged to the proper maintenance or construction account. 12. REMOVAL OF SNOW AND ICE. This account shall include the cost of labor and material used in removal of snow and ice from tracks, whether done by the company or otherwise, includ- ing cost of tools, cost of salt and delivering same in carhouses or bins, wages of men engaged in salting track and in operating snow plows, sweepers, scrapers, etc., and other supplies and expenses incident to this work. This account shall also include the wages of trainmen operating cars solely for the purpose of keeping line open, the cost of removing water caused by mfelting snow, cost of placing and removing portable snow fences, and rent of ground on which to place snow fences. Note.— Repairs of salt cars, snow plows, sweepers, scrapers, and miscellaneous snow equipment used iu connection with this work shall be charged to account No. 32, "Service equipment." Re- pairs of harness and wagons used in connection with this work shall be charged to account No. 38, "Vehicles and horses.'! 24 OPBEAUNG EXPENSES. 13. TUNNELS AND SUBWAYS. This account shall include the cost of labor and material used in repairing tunnels and subways; cost of cleaning, painting, and whitewashing; and cost of maintenance of lighting, ventilating, and drainage systems. To this account shall be credited the value of material removed. Note.— This account shall not include repairs of roadway, tracks, or electrio feeder and contact lines through tunnels. 14. ELEVATED STRUCTURES AND FOUNDATIONS. This account is intended to be used only by companies operating an elevated railway system, and shall include the cost of labor and material used in repair- ing elevated structures and their foundations. To this accoimt shall be credited the value of material removed. 15. BRIDGES, TRESTLES, AND CULVERTS. This account shall include the cost of labor and material used in repairing bridges, trestles, and culverts (both substructure and superstructure), their piers, abutments, masonry, and drain pipes, and the retaining walls, riprapping, and dikes necessary to protect or strengthen them against ice, water, or drift; cost of altering and bracing bridges and trestles during progress of filling; cost of removing old bridges in connection with construction of new bridges; and cost of constructing and removing temporary or false work used in repairing bridges and culverts; also cost of guards on bridges, framing ties for bridges; bridge signs or number boards; cleaning of channels under bridges and cleaning of culverts; pay of bridge foremen, and cost of supplies used by them; pay of bridge inspectors and expenses incident to bridge inspection. The cost of replacing bridges, trestles, and culverts destroyed by fire or washouts shall be charged to this account; also repairs made necessary by washouts. To this account shall be credited the value of material removed. Any structure carrying the carrier's tracks over other tracks, or over a stream, highway, or canal should be considered a bridge or a culvert. Note.— The cost of maintaining structures carrying other tracks, canals, highways, etc., over the accounting carrier's tracks shall be charged to account No. 16, " Crossings, fences, and signs." 16. CROSSINGS, FENCES, AND SIGNS. This account shall include the cost of labor and material used in repairing street, road, and farm crossings at grade; overhead bridges and viaducts; roadways of undergrade foot, wagon, or cattle crossings; drainage and excavations for undergrade crossings; crossing gates and warning signals; and payments and assessments for street repairs or repairs of sewers at crossings. This account shall also include cost of material used and labor expended in repairing right-of-way fences, snow and sand fences, cattle guards, wing fences aprons, and hedges; and mile, section, warning, and other roadway signs. To this account shall be credited the value of material removed. Note.— Street repaus or repairs of sewers within the limits of shop grounds or immediately adjacent to station buildings shall be charged to account No. 24, " Buildings, fixtures, and grounds." 17. SIGNAL AND INTERLOCKING APPARATUS. This account shall include the cost of labor and material used in repairins buildings and apparatus of interlocking systems, semaphore, block, and other signal systems, including air compressors, levers, boilers, dynamos, engines and other appliances used in connection therewith; also the cost of labor and material used in repairing targets and lamps, and switch lights at sidings. OPEEATIlirG EXPENSES. 25 To tliis account shall be credited the value of material removed. Note A. — This account shall not include the cost of track material proper required in connection with interlockers, such as switches, special track fastenings, split rails, and frogs, the cost of which shall be charged to proper maintenance of way accounts. Note B. — Eent of appliances tor signal and interlocking systems shall be charged to account No. 72, " Operation of signal and interlocking apparatus." Note C. — No charge shall be made to this account for setting and repairing poles and fixtures used primarily for telegraph, telephone, or transmission systems when such poles and fixtures incidentally support signal wires. 18. TELEPHONE AND TELEGRAPH LINES. This account shall include the cost of labor and material used in repairing telephone and telegraph systems owned by the company, or for which it is responsible, including conduits, poles, cross arms, insulators, wires, cables, cable bqxes, booths, instruments, battery jars, switchboards, and other appurtenances of such telephone and telegraph systems. To this account shall be credited the value of material removed. Note A. — Rent of telephone and telegraph systems shall he charged to account No. 73, "Opera- tion of telephone and telegraph lines," or to account No. 89, "Miscellaneous general expenses." Note B. — If telephone or telegraph wires are carried on poles and fixtures or In conduits used for other purposes, the cost of maintaining such poles and fixtures or conduits shall be charged to ac- count No. 20, "Poles and fixtures," No, 21, "Underground conduits," or No. 49, "Transmission system." 19. MISCELLANEOUS WAY EXPENSES. This account shall include all expenses in connection with maintenance of way not properly chargeable to other accounts. 20. POLES AND FIXTURES. This account shall include the cost of labor and material used in setting and repairing poles and cross arms; insulating pins, brackets, and other pole fixtures; braces and other supports for holding the poles in position; and structures maintained primarily for supporting overhead electric construction. The cost of renumbering poles shall be charged to this account. To this accoimt shall be credited the value of material removed. Note A.— The cost of labor and material used in repairing poles and fixtures used primarily for oarrymg transmission lines shall be Included In account No. 49, "Transmission system." Note B.— The cost of insulators shall not be charged to this account, but to account No. 22, "Distribution system," or No. 49, "Transmission system." 21. UNDERGROUND CONDUITS. This account shall include the cost of labor and material used in repairing conduits required for underground wires and cables, including manholes, sewer connections, and sewer traps. To this account shall be credited the value of material removed. Note.— The cost of labor and material used in repairing underground conduits used primarily for carrying transmission lines shall be included in account No. 49, '/Transmission system." 22. DISTRIBUTION SYSTEM. This account shall include the cost of labor and material used in repairing the distribution system, as follows: (a) Overhead feeders for transmitting low-tension power from power stations and substations, including insulators and connections. (6) Underground feeders for transmitting low-tension power from power stations and substations, including insulators and connections. (c) Track bonding, including track bonds, cost of punching and drilling rails for track bonds, and testing for defective bonding. 26 OPERATING EXPENSES. (d) Overhead trolley, including cost of trolley, guard, span, strain, supple- mentary, and other wires, and all catenary construction used in connection with the overhead trolley system. (e) Third rail, including cost of third rail, braces and supports for same, insu- lating devices, material used for covering and protecting same, and all fixtures and appliances connected with third-rail construction. (/) Underground contact rails, including cost of contact rails and appliances in underground contact systems, and appurtenant braces, supports, and insulating devices. To this account shall be credited the value of material removed. When a company does an incidental power, light, or heat business, the cost of repairing transformers, meters, and wiring used in connection with the deliv- ery of power sold shall be included in this account. Note.— When the electric current generated or received is changed by means of rotary converters, motor generator sets, or static transformers (substation apparatus), that portion of the line or outside conductor system carrying current of other than the operating Irind or voltage shall be classed as transmission system. When the electric current is generated or received and used substantially unchanged in voltage and kind, the line or outside conductor system, including feeders, trolley wire, booster circuits, and supplementary return, if any, shall be classed whoUy as distribution system. Tie lines between generating stations and substations shaU follow the same rule as other lines. 23. MISCELLANEOUS ELECTRIC LINE EXPENSES. This account shall include all expenses in connection with maiutenance of electric line not properly chargeable to other accounts. Note.— This account shall not include miscellaneous expenses in connection with the transmis- sion system. Such expenses shall be charged to account No. 49, " Transmission system." 24. BUILDINGS, FIXTURES, AND GROUNDS. This account shall include the cost of labor and material used in repairing car- houses, shops, general offices, stations, waiting rooms, platforms, docks, wharves, and all other buildings and structures (except power plant and substation build- ings and towers or buildings used exclusively for signal and interlocking appa- ratus) used in the operation of the road. This account shall also include the cost of repairing fixtures; maintaining walks, driveways (including those at unloading tracks), and grounds- cost of flowers and shrubs, and labor planting and caring for same; and the cost of mow- ing lawns about buildings and structures above named. The term buildmgs, fixtures, and grounds, in addition to embracing the buildings proper, includes permanent fixtures; permanent foundations for machinery and apparatus; pipes for gas, water, sewerage, and drainage; apparatus for heating lighting, and ventilating; freight and passenger elevators, with fixtures and appi^- tenances; platforms; hose and appliances for protecting buildings against foe- fences, walls, sidewalks, and pavements (except paving in tracks) within the limit of grounds or immediately adjacent to buildings or yards To this account shall be credited the value of material removed. Note A.-Expenses incident to the mamtenance of power plant anH =„h,f„f u .,. grounds shall be charged to account No. 46, -Power plant buUdta., substation buildings and Expenses incident to the maintenance of towers or buUdings used e,rclL i ?' "'"* Srounds." locking apparatus shaU be charged to account No. 17 "Signal and intri , ^ "'^^^ " ™'*'- NOTE B.-The cost of repairs of track and electric ImetobuXL" "t . ^^ apparatus." charged to the foregoing accounts (Nos. 1 to 23, inclusive) appropriate'for^^l ^°™'*' """^^ "* NOTE o^-This account is intended to mclude the cosL^^ZT^ 'ZnT'Z'^'''- . held under long-term leases. The cost of repairs of buildines rentPrt T ""^"^^^Ss or buildings be charged to the account to which the rent is charged. ™™*^ '° month shaU OPEEATING EXPENSES. 27 25. DEPRECIATION OP WAY AND STRUCTURES. This account shall include charges covering the current loss from depreciation of way and structures. (See general instructions, section 14.) Note —Depreciation of power plant and substation buildings shall be included in aocoimt No. 60, "Depreciation of power plant buildings and equipment." 26. OTHER OPERATIONS— DR. This account shall include debits representing the proportion of operating expenses chargeable to maintenance of way and structures of the railway depart- ment, but the distributed charges for which have been made to the primary accounts of another coordinate department, such as electric power, light, or heat, within the same company. 27. OTHER OPERATIONS— CR. This account shall include credits representing the proportion of operating expenses included under the general account Way and Structures chargeable to the accounts of another coordinate department, such as an electric power, light, or heat department within the same company, the distributed charges for which have been made to the primary accounts of the railway department. 28. EQUALIZATION— WAY AND STRUCTURES. This account, the use of which is optional, is provided for the CMivenience of those carriers desiring to have each month's operating expenses reflect, by general account totals, an equitable monthly proportion of the estimated or authorized maintenance expenses for the year, and at the same time to show the actual expenditures by primary accounts . If the total actual monthly expenditures shown by the preceding primary ac- counts in this general account do not aggregate an equitable monthly proportion of the estimated annual cost of maintaining way and structures, an amount sufflcient to make up such monthly proportion may be charged to this account. If the total actual expenditures are more than an equitable monthly proportion of the annual estimate, the difference may be credited to this account. The amount included in this account should be entered as a debit or a credit, and concurrently a credit, or debit, should be made to a ledger account styled "Equali- zation reserve." The accoimt "Equalization reserve" shall be cleared annually unless at the end of the year there remains a credit balance due . the noncompletion of main- tenance work because of adverse labor conditions, nonreceipt of material, or similar reasons, in which case such part of the balance as is applicable to unfinished work may be carried over to the following year. In case a balance applicable to main- tenance of way and structures is carried over, the carrier shall indicate in its annual report to the Commission the amounts constituting such balance and the reasons therefor. Under no circumstances shall a debit balance be carried over the year. II. EQUIPMENT. 29. SUPERINTENDENCE OF EQUIPMENT. This account shall include the salaries and office and other expenses of officer? and their assistants when directly in charge of equipment other than power plant and substation equipment, including superintendent of rolling stock, master car builder, master mechanic, and their office forces; cost of supplies used by employees whose salaries are charged to this accoimt; office rent, cost of repairing 28 OPBRATIHG EXPENSES. rented offices, cost of repairing furniture, and miscellaneous office expenses, ■when separate offices not in general office buildings are maintained for officers whose salaries are charged to this account. Note A.— WTien employees designated'-atove are engaged in work not chargeable to Equipment, their salaries and expenses shall be charged to the specific work on which engaged. Note B.— When employees designated above have supervision over other departments also, their salaries and expenses shall be apportioned equitably among the departments over which they have jurisdiction. Note C— It is not intended that any portion of the expenses of general offices shall be charged to this account. The office expenses of employees designated above who have offices in general office buildhigs shall be Included hi the appropriate primary accounts under the general account General and Miscellaneous. Noted.— Expenses incident to the superintendence of power plant or substation equipment shall be included in account No. 45, "Superintendence of power," under the general account Power. 30. PASSENGER AND COMBINATION CARS. This account shall include the cost of labor and material used in repairing passenger and combination cars, including parlor, chair, sleeping, and diaing cars. To this account shall be charged the cost of repairing the following fixtures and appliances: Fare registers and fare boxes, electric bells and wiring, electric car heaters and wiring, electric lighting and wiring, air-brake equipment and wiring, motors for air governors and pumps, trolley catchers, snow plows attached to cars, couplers, headlight parts, adjustable signs attached to cars; also the cost of shift- ing trucks from one car to another. The term car includes body and trucks and all fixtures and appliances inside of or attached to the car body or trucks, except the electric motive equipment of the car. The term cornbination car includes all cars that are used in part for carrying passengers. To this account shall be credited the value of material removed. Note.— Portable signs, incandescent lamps, and other supplies for cars shall be charged to account No. 67, "Miscellaneous car-service expenses." 31. FREIGHT, EXPRESS, AND MAIL CARS. This account shall include the cost of labor and material used ia repairing freight, express, and mail cars from the operation of which revenue is derived. To this account shall be charged the cost of repairing the following fixtures and appliances: Electric bells and wiring, electric car heaters and wiring, electric lightiQg and wiring, air-brake equipment and wiring, motors for air governors and pumps, trolley catchers, snow plows attached to cars, couplers headlight parts, adjustable signs attached to cars; also the cost of shifting trucks from one car to another. The term car includes body and trucks and all fixtures and appliances inside of or attached to the car body or trucks, except the electric motive equipment of the car. To this account shall be credited the value of material removed Note.— Portable signs, incandescent lamps, and other supplies for cars shall be charged to account No. 67, "Miscellaneous car-service expenses." 32. SERVICE EQUIPMENT. This account shall include the cost of labor and material noori j^ „ • • ... . , , - , TOiioij. uBBu m repairmg service cars, mcludmg spnnkler cars, sand cars, salt cars, supply cars mainte of way and line cars, snow plows, sweepers, scrapers, and other service equipment To this account shall be charged the cost of repairing fixtures and aBBha service cars, such as cranes, pile drivers, welding and bonding apparatus el fri bells and wiring, electric car heaters and wiring, electric lighting and ' " OPERATING EXPENSES. 29 air-brake equipment and wiring, motors for air governors and pumps, trolley catchers, snow plows attached to cars, couplers, headlight parts; also the cost of shifting trucks from one car to another. The term car includes body and trucks and all fixtures and appliances attached to the car body or trucks, except the electric motive equipment of the car. To this account shall be credited the value of material removed. Note.— Portable signs, incandescent lamps, and other supplies tor service cars shall be charged to account No. 67, "Miscellaneous car-service expenses." 33. ELECTRIC EQUIPMENT OP CARS. This accoimt shall include the cost of labor and material used in repairing the electric motive equipment and electric motive wiring of all passenger, com- bination, freight, express, mail, and service cars. The cost of shifting the electric equipment from one car to another shall be charged to this account. To this account shall be credited the value of material removed. Note A.— Incandescent lamps and other supplies lor cars shall be charged to account No. 67, "Miscellaneous car-service expenses." Note B. — This account shall not include the cost of repairing the following fixtures and appliances on passenger, combination, Ireight, express, mail, or service cars, or locomotives: Electric beUs and wiring, electric heaters and wiring, electric lighting and wiring, air-brake equipment and wiring, mo- tors for air governors and pumps, trolley catchers, snow plows attached to cars, couplers, head- light parts, adjustable signs attached to cars, etc. Such expenses shall be charged to accounts Nos. 30, 31, 32, or 34, as may be appropriate. Note C. — Electric motive equipment includes trolley poles, wheels, sliding bows, tbird-rall shoes, etc. 34. LOCOMOTIVES. This account shall include the cost of labor and material used in repairing locomotives. To this account shall be charged the cost of repairing electric motive equip- ment of locomotives and the following fixtures and appliances: Electric bells and wiring; electric heaters and wiring; electric lighting and wiring; air-brake equip- ment and wiring; motors for air governors and pumps; trolley parts, retrievers, and catchers; snow plows attached to locomotives; couplers; headlight parts; adjustable signs attached to locomotives; also the cost of shifting trucks or elec- tric motive equipment from one locomotive to another. The term locomotive includes body and trucks and all fixtures and appliances inside of or attached to the body or trucks, including the electric motive equip- ment of locomotives. Oarriers operating steam locomotives shall include the cost of repairing same in this account, using a subaccount if desired. To this account shall be credited the value of material removed. Note.— Portable signs, incandescent lamps, and other supplies for locomotives shall be charged to account No. 67, "Miscellaneous car-service expenses." 35. FLOATING EQUIPMENT. This account shall include the cost of labor and material used in repairing ferryboats, transfer boats, tugboats, barges, lighters, car floats, and other floating equipment, including repairs of machinery, furniture, fixtures, and other appurte- nances thereto. Note A.— If the carrier desires, expenses includible in this account may be kept separate by the use of subaccounts. Note B.— The cost of operating floating equipment, when not used in auxiliary operations, shall be charged to account No. 74, " Operation of floating equipment." Note C— The cost of repairing and renewing floating equipment used in auxiliary operations shall be charged to income account No. 214, "Auxiliary operations— Expenses." 30 OPERATING EXPENSES. 36. SHOP EQUIPMENT. This account shall include the cost of labor and material used in repairing machinery and tools (except hand tools) in shops and carhouses, such as engines and boilers, shafting and belting, cranes, hoists, jacks, and other equipment used in connection therewith; furnaces, forges, planers, lathes, shapers, drill presses, wheel grinders, and wheel presses; machinery for compressing and storing com- pressed air, and fixtures for using same; and tools used in connection with power- driven machinery. To this account shall be credited the value of material removed. NoTE.-The coat of repairing hand tools stiaii te charged to account No. 37, "Shop expenses." 37. SHOP EXPENSES. This account shall include expenses for heating and lighting shops; miscella- neous expenses of such shops, including fuel, water, and ice; cost of oil, grease, waste, and other material used in lubricating shop machinery and tools; cost of supplies and small tools used by mechanics, and wages of employees making and repairing same; wages of stationary engineers and firemen; and pay of watchmen, sweepers, cleaners, and other unskilled laborers employed in general work in and about shops and shop yards. Note.— The cost of labor and material used in a track shop shall be charged to accounts No 8, "Track and roadway labor," and No. 9, "Miscellaneous track and roadway expenses," as may be appropriate. 38. VEHICLES AND HORSES. This account shall include the cost of labor and material used in repairing emergency, tower, repair, and other service wagons, automobiles, motorcycles, sleds, sleighs, omnibuses, and other vehicles, and harness; and cost of horses purchased to replace others lost by death or worn out in service, when no reserve has been provided for their replacement by charges to Operating Expenses. To this account shall be credited the value of material removed. 39. MISCELLANEOUS EQUIPMENT EXPENSES. This account shall include all expenses in connection with maintenance of equipment which are not properly chargeable to other equipment accounts. 40. DEPRE0IA.TION OF EQUIPMENT. This account shall include uniform monthly charges representing the depreci- ation of equipment. These charges shall be based upon the percentage of the original cost (estimated if not known), record value, or purchase price of such equipment determined to be equitable from the carrier's experience and best sources of information as to the average current loss from depreciation A statement of the basis used by the accounting carrier for computing the charges hereto shall be included in its annual report to the Interstate Com- merce Commission. Depreciation, charges with respect to any unit of equipment shall cease when the difference between the ledger value and the estimated scrap value shall have been credited to the accrued depreciation account. OPEBATING EXPENSES. 31 Amounts included in tliis account shall be distributed and reported under the appropriate subaccounts named below: (a) Passenger and combination cars. (6) Freight, express, and mail cars. (c) Service equipment. (d) Electric equipment of cars. (e) Locomotives. (/) Floating equipment. Note A.— All charges to this account shall be concurrently credited to balance-sheet account No. 443, "Accrued depreciation— Eoad and equipment." Note B.— When any unit of equipment Is retired the difference between its ledger value (less salvage) and the amount previously taken up in the accrued depreciation account for such imit shall be adjusted in the month in which the retirement occurs as follows: The proportion of the actual loss from depreciation assignable to the period prior to July 1, 1914, shall be charged to Profit and Loss and the remainder shall be charged to account No. 41, " Equipment retired." 41. EQUIPMENT RETIRED. This account shall include the original cost (estimated if not known) or record value of equipment abandoned, destroyed, sold, or otherwise retired from service, less salvage, and less the reserve for accrued depreciation on such equipment to the date of retirement. Amounts included in this account shall be distributed and reported under the appropriate subaccounts named below: (a) Passenger and combination cars. (6) Freight, express, and mail cars. (c) Service equipment. (d) Electric equipment of cars. (e) Locomotives. (/) Floating equipment. Note A.— If equipment is sold for more than its original cost or record value, the amount of the profit shall be credited to Profit and Loss Account. Note B.— See Note B of account No. 40. 42. OTHER OPERATIONS— DR. This account shall include debits representing the proportion of operating expenses chargeable to maintenance of equipment of the railway department, but the distributed charges for which have been made to the primary accounts of another coordinate department, such as an electric power, light, or heat depart- ment within the same company. 43. OTHER OPERATIONS— OR. This account shall include credits representing the proportion of operating expenses included under the general account Equipment chargeable to the ac- counts of another coordinate department, such as an electric power, light, or heat department, within the same company, the distributed charges for which have been made to the primary accounts of the railway department. 44. EQUALIZATION— EQUIPMENT. This account, the use of which is optional, is provided for the convenience of those carriers desiring to have each month's operating expenses reflect, by gen- eral account totals, an equitable monthly proportion of the estimated or author- ized maintenance expenses for the year, and, at the same time, to show the actual expenditures by primary accounts. If the total actual monthly expenditures shown by the preceding primary accounts in this general account do not aggregate an equitable monthly pro- portion of the estimated annual cost of maintaining equipment, an amount suf- ficient to make up such monthly proportion may be charged to this account. 32 OPEEATING EXPENSES. If the total actual expenditures are more than an equitable monthly proportion of the annual estimate, the difference may be credited to this account. The amount included in this account should be entered aa a debit or a credit, and con- currently a credit, or debit, should be made to a ledger account styled " Equali- zation reserve. " The account "Equalization reserve" shall be cleared annually unless at the end of the year thwe remains a credit balance due to the noncompletion of main- tenance work because of adverse labor conditions, nonreceipt of material, or similar reasons, in which case such part of the balance as is applicable to un- finished work may be carried over to the following year. In case a balance appli- cable to maintenance of equipment is carried over, the carrier shall indicate in its annual report to the Commission the amounts constituting such balance and the reasons therefor. Under no circumstances shall a debit balance be carried over the year. III. POWER. 45. SUPERINTENDENCE OF POWER. This account shall include the salaries and the office and other expenses of officers and their assistants, when directly in charge of, or engaged in, the mainte- nance and operation of power plants and substations; cost of supplies used by employees whose salaries are chargeable to this account; office rent and cost of repairing rented offices; cost of repairing furniture and miscellaneous office ex- penses when separate offices, not in general office buildings, are maintained for officers whose salaries are charged to this account. Note A.— When employees designated above are engaged in work not cliargeable to primary accounts under general account Power, tlieir salaries and expenses shall be charged to the speciflo work on which engaged. Note B.— When employees designated above have supervision over other departments also, their salaries and expenses shall be apportioned equitably among the departments over which they have supervision. 46. POWER PLANT BUILDINGS, FIXTURES, AND GROUNDS. This account shall include the cost of labor and material used in repairing power plant and substation buildings and fixtures; used in the generation, trans- mission, or distribution of power; cost of maintaining walks, driveways, and grounds connected with such buildings; and all incidental expenses coni^ectfid with the maintenance of power plant and substation buildings. The cost of labor and material used in repairing wells, dams, reservoirs, canals, and pipe lines used in connection with hydraulic or other generating plants shall also be in- cluded in this account. To this account shall be credited the value of material removed The term power plant buildings, fixtures, and grounds embraces not only the bmldmgs proper, but also permanent fixtures; foundations, except those special to particular machines and apparatus; pipes for gas, water, sewerage and drain- age; apparatus for heating, lighting, and ventilating; freight and pa'sseneer ele- vators, with fixtures and appurtenances; platforms; coal pockets and trestles- hose and appliances for protecting buildings against fire; fences walls side' walks, and pavements within the Kmits of grounds immediately adjacent io bmldmgs or yards, except paving in tracks. Note A.-If the carrier so desires, the expenses of hydrauUc eeneratin,, ^io„t separate from those of steam generating plants by the use of subprimary account? °'^'' ^^^^ NOTE B.-n desired, the expenses of maintaining substation buUdings fixture ,.h may be kept separate by the use of a subprimary account. nxtures, and grounds 47. POWER PLANT EQUIPMENT. This account shall include the cost of labor and material used in repairing steam, water-power, gas-engme, or electric-plant equipment, including turbi^! OPEEATING EXPENSES. 33 other engines, and engine parts; special foundations and settings, appliances, and fixtures; belts, belt tighteners, and fixtures; lubricators and oiling devices; shafting, clutches, cranes, hoists, and other engine-room appliances; boilers, boiler fittings, and appliances; furnaces, economizers, mechanical draft ma- chinery, pumps, feed-water heaters, purifiers, tanks, condensers, coal and ash conveying machinery, mechanical stokers, and other boiler-room appliances; piping and steam fittings, including valves, separators, water and sewer con- nections, and water meters; generators and generator parts, switchboards, cables, feeder terminals, and wiring in connection with same; boosters, rheostats, circuit breakers, voltmeters, ammeters, and other electric equipment; packing and carbon rings; and repair parts of machine tools in power plants. Repairs of cable used in operating cable or incline railways shall be charged to this account. The cost of maintaining power plant equipment of a lighting plant operated in connection with an electric railway shall be included in this account. To this account shall be credited the value of material removed. 48. SUBSTATION EQUIPMENT. This account shall include the cost of labor and material used in repairing sub- station apparatus, including specially provided foundations and settings, storage batteries, transformers, rotary converters, oil switches, switchboards, switchboard appliances, and wiring in connection with same. To this account shall be credited the value of material removed. 49. TRANSMISSION SYSTEM. This account shall include the cost of labor and material used in repairing the transmission system, including cables, wires, insulators, and insulating material; also cost of changing route of line or removing line when no replacement is made, and cost of repairing poles, pole fixtures, and underground conduits used primarily tor carrying transmission Unes. To this account shall be credited the value of material removed. Note.— When the electric current generated or received is changed by means of rotary converters, motor generator sets, or static transformers (substation apparatus), that portion of the line or outside conductor system carrying current of other than the operating kind or voltage shall be classed as transmission system. When the electric current is generated or received and used substantially unchanged in voltage and kind^ the line or outside conductor system, including feeders, trolley wire, booster circuits, and supplementary return, if any, shall be classed wholly as dist«ibution system . Tie lines between generating stations and substations shall foUow the same rules as other lines. £0. DEPRECIATION OF POWER PLANT BUILDINGS AND EQUIPMENT. This account shall include charges covering the current loss from depreciation on power plant and substation buildings and equipment, and on transmission system. (See general instructions, section 14.) 51. EQUALIZATION— POWER. This account, the use of which is optional, is provided for the convenience of those carriers desiring to have each month's operating expenses reflect, by general account totals, an equitable monthly proportion of the estimated or authorized maintenance expense for the year, and, at the same time, to show the actual ex- penditures by primary accounts. If the total actual monthly expenditures shown by the preceding primary accounts in this general account do not aggregate an equitable monthly propor- tion of the estimated annual cost of maintaining power plant and substation buildings, equipment, and transmission system, an amount sufficient to make up Buch monthly proportion may be charged to this account. If the actual expendi- 42130°— 14 8 34 OPEBATING EXPENSES. turea are more than an equitable monthly proportion of the annual estimate the difference may be credited to this account. The amount included in this account should be entered as a debit or a credit, and concurrently a credit, or debit, should be made to a ledger account styled "Equalization reserve." The account "Equalization reserve" shall be cleared annually unless at the end of the year there remains a credit balance due to the noncompletion of main- tenance work because of adverse labor conditions, nonreceipt of material, or similar reasons, in which case such part of the balance as is applicable to un- finished work may be carried over to the following year. In case a balance applicable to maintenance of power plant and substation buildings and equip- ment and of transmission system is carried over, the carrier shall indicate in its annual report to the Commission the amounts constituting such balance and the reasons therefor. Under no circumstances shall a debit balance be carried over the year. 52. POWER PLANT EMPLOYEES. This account shall include the cost of labor in power plants, except labor employed in making repairs. Note.— Wages of substation employees shall be charged to account No. 67, "Substation employees." 53. FUEL FOR POWER. This account shall include the cost of coal, oil, gas, and other fuel used at power plants, including cost of transportation of such fuel; also cost of gasolene or other fuel used in operating motor service cars. 54. WATER FOR POWER. This account shall include the cost of water used to produce steam or to operate a water-power plant, including cost of pumping; water rents and rent of ponds, streams, and pipe lines; also boiler compound, and other like expenses. 55. LUBRICANTS FOR POWER. This account shall include the cost of lubricants for power plants, such as oil and grease. Note.— Lubricants for substations shall be charged to account No. 68, "Substation suppUesand expenses." 56. MISCELLANEOUS POWER PLANT SUPPLIES AND EXPENSES This account shall include the- cost of waste, carbon brushes, fuses, lamps hand tools, and other supplies and expenses of power plants. 57. SUBSTATION EMPLOYEES. This account shall include the cost of labor in substations, except labor em- ployed in making repairs. 58. SUBSTATION SUPPLIES AND EXPENSES. This account shall include the cost of substation supplies and expenses such as lubricants, waste, carbon brushes, fuses, lamps, hand tools, water, and' other similar items. 59. POWER PURCHASED. This account shall include the cost of power purchased from other companies. Note.— In this connection see account No. 60, "Power exchanged— Balance " 60. POWER EXCHANGED— BALANCE. If a company actually exchanges power with another company it shall charge to this account the value of the power received from the other company and shall credit to this account the value of the power it delivers to the other company and the amount shown herein shall be the net debit or credit balance. OPERATING EXPENSES. 35 61. POWER TRANSFERRED— CREDIT. This account may be credited, and the appropriate operating expense accounts ctarged, witli that proportion of the total of the accounts under the general account Power which the power used for lighting, heating, or for other purposes in offices, carhouses, shops, storerooms, stables, stations, towers, tunnels, signal systems, operating bridges, etc., bears to the total power generated. The use of this account is optional with the carrier; if used, the working papers showing details of the basis for computing credits hereto and charges to operating expense accounts shall be retained. 62. OTHER OPERATIONS— OR. This account shall include credits representing the proportion of operating expenses, included under the general account Power, chargeable to the accounts of another coordinate department, such as an electric power, light, or heat de- partment within the same company, for power furnished. Note.— The proportion of expenses, included in the primary accounts under the general account General and Miscellaneous, chargeable io other coordinate departments shall be included in account No. 100, "Other operations— Cr." IV. COIfDTICTIIfa TRANSPORTATION. 63. SUPERINTENDENCE OF TRANSPORTATION. This account shall include the salaries and the office and other expenses of officers and assistants when directly in charge of transportation, including super- intendent of transportation, division superintendents, their assistants and aids; trainmasters, train dispatchers, car starters, inspectors, instructors, and others employed in superintending transportation; wages of clerks furnishing tickets and supplies to motormen and conductors, and receiving and arranging conduc- tors' remittances for transmittal to general offices; and cost of supplies used by employees whose salaries are charged to this account. To this account shall also be charged office rent, cost of repairing rented offices, cost of repairing furniture, and miscellaneous office expenses when separate offices not in general office buildings are maintained for officers whose salaries are charged to this account; rent of offices used for receiving conductors' collections, rent of instruction rooms; cost of uniforms and badges furnished inspectors and car starters whose wages are charged to this account; and cost of checking traffic for schedule purposes. Note A.— Cost of secret-service inspection shall be charged to account No. 67, "Miscellaneous car-sffl^ce expenses." Note B.— No portion of the expenses of general offices shall be charged to this account. Note C— When employees designated above are engaged in work not chargeable to Ctfnducting Transportation, their salaries and expenses shall be charged to the specific work on which engaged. Note D. — When employees designated above have supervision over other departments also, their salaries and expenses shall be apportioned equitably among the departments over which they have jurisdiction. 64. PASSENGER CONDUCTORS, MOTORMEN, AND TRAINMEN. This account shall include the wages of conductors, motormen, and other trainmen engaged in passenger service, including wages paid for time during which they are required to be on duty and to hold themselves in readiness for active service. 65. FREIGHT AND EXPRESS CONDUCTORS, MOTORMEN, AND TRAINMEN. This account shall include the wages of conductors, motormen, and other trainmen engaged in freight, express, and mail service, including wages paid for time during which they are required to be on duty and to hold themselves in readiness for active service. 36 OPEEATING EXPENSES. 66. MISCELLANEOUS CAR-SERVICE EMPLOYEES. This account shall include the wages of transfer agents, switch tenders, switchmen, flagmen, watchmen, trail-car couplers, bridge tenders, and other car-service employees when not provided for elsewhere. 67. MISCELLANEOUS CAR-SERVICE EXPENSES. This account shall include miscellaneous expenses for cars, locomotives, and electric equipment of cars and locomotives, such as lubricants and waste, incan- descent lamps, oil, and other supplies for lighting, globes and carbons for head- lights, supplies for cleaning, fuel for heating, switch rods or hooks for throwing switches, tools, and other materials and supplies, except such as are used for repairs. This account shall include also the cost of secret-service inspection; conduc- tors' books and punches; rent of fare registers; car-service employees' badges and uniforms; refilling of fire extinguishers in cars; portable signs on cars for guid- ance of passengers; meals furnished trainmen; temporary grain doors; and other car-service supplies and expenses. Note.— Portable signs on cars for the purpose of attracting traffic shall be charged to account No. 80, "Advertising." 68. STATION EMPLOYEES. This account shall include the wages of stationmasters; freight, express, ticket, baggage, and other station agents; announcers, station gatemen, chopper men, and platform men; janitors, porters, watchmen, and other station employees; warehousemen, freight house foremen, weighmasters, truckmen, checkmen, billing clerks, cashiers, and other express and freight house employees. The cost of unloading freight at stations or sidings, when borne by the carrier, shall be charged to this account. Note.— When a station employee is engaged in various duties and his wages can be readily appor- tioned among the accounts affected, such apportionment should be made. 69. STATION EXPENSES. This account shall include the cost of heating and lighting stations, waiting rooms, freight houses, and other station buildings; rent of station buildings; cost of repairing rented waiting rooms, and of repairing furniture and fare boxes at stations; local telephone service; cost of tools and implements for handling freight and baggage, station employees' uniforms and badges, water, and ice; and all other station expeuBes. 70. CARHOUSE EMPLOYEES. This account shall include the wages of carhouse foremen; car, motor, and brake inspectors; watchmen, car placers, car shifters, car cleaners, lamp and headlight tenders, car oilers, car-stove firemen, trolley oilers, and other car- house employees not engaged in making repairs. NOTE.-The cost of labor used in Chitting trucks and electric equipment shaU be chareed to accounts Nos. 30, 31, 32, 33, or 34, as may be appropriate. 71. CARHOUSE EXPENSES. This account shaU include the cost of fuel, light, water, ice, and other car- house supplies and expenses. 72. OPERATION OF SIGNAL AND INTERLOCKING APPARATUS. This accounrshaU include the wages of employees engaged in operating sig- nal and interlocking apparatus covering the movement of cars, such aTtower men, signalmen, lever men, and lamp men; cost of supplies used in operating OPERATING EXPENSES. 37 signal and interlocking apparatus; cost of fuel, water, light, and supplies for sig- nal oflSces; rent of appliances for signal andinterlocker systems; cost of cleaning, filling, and lighting switch lamps, and supplies for same. Note. — When an employee is engaged in various duties and his wages can be readily apportioned among the accounts affected, such apportionment should be made. 73. OPERATION OF TELEPHONE AND TELEGRAPH LINES. This account shall include the wages of telephone and telegraph operators, cost of chemicals and other supplies for telephone and telegraph service, pay- ments for use of telephone and telegraph lines, and other telephone and tele- graph expenses in connection with transportation. The rent of telephone or telegraph lines used primarily for the operation of cars shall be included in this account. Note. — Repairs of telephone and telegraph lines shall not be charged to this account, but to account No. 18, " Telephone and telegraph lines." The cost of telephone service for general purposes shall be charged to accotmt No. 89, "Miscellaneous general expenses," and when for local service at stations to account No. 69, " Station expenses." 74. OPERATION OF FLOATING EQUIPMENT. This account shall include the cost of operating floating equipment used in connection with the carrier's rail transportation operations and terminal transfer operations. To this account shall be charged the salaries and wages of employees engaged in the superintendence and operation of ferryboats, transfer boats, tug- boats, barges, lighters, car floats, and other floating equipment; the cost of fuel and supplies for such equipment and all other expenses incident to their opera- tion. Note. — The cost of maintaining floating equipment, if used in coimection with the carrier's rail transportation operations, shall be charged to account No. 35, " Floating equipment." The cost ol maintaining and operating floating equipment used in auxiliary operations shall be charged to income account No. 214, "Auxiliary operations— Expenses." 75. OPERATION OF STEAM LOCOMOTIVES. To this account shall be charged the cost of operating steam locomotives, including wages of engineers and firemen, fuel, water, lubricants, and other sup- plies and expenses in connection with such operation. (See general instructions, section 7.) Note A.— Eepah-s to steam locomotives shall not be charged to this account, but to account No. 34, "Locomotives." Note B. — IS the carrier desires, the expenses includible in this account may be kept separate by the use of subaccounts. 76. FREIGHT AND EXPRESS COLLECTION AND DELIVERY. This account shall include the wages of chauffeurs, drivers, and helpers employed on wagons and other vehicles which are used for the collection and delivery of freight and express matter, ampunts paid for handUng freight and express matter in wagons or other vehicles, and other expenses incident to the collection and delivery of freight and express matter, not properly includible in accounts No. 38, "Vehicles and horses," and No. 96, "Garage and stable expenses." 77. LOSS AND DAMAGE. This account shall include expenses incurred for loss, damage, delays, and destruction of freight, express matter, and baggage intrusted to a carrier for transportation, and expenses directly incident thereto, including freight and express charges paid other carriers on lost, destroyed, damaged, or delayed freight, express matter, and baggage. 38 OPERATING EXPENSES. 78. OTHER TRANSPORTATION EXPENSES. This accoimt shall include all expensea in connection with conducting trans- portation not properly chargeable to other accounts, such as expenses in con- nection with weighing, inspection, and demurrage bureaus, wages of crews on emergency vehicles, cost of getting derailed cars on track, and cost of removing wreckage. V. TRAFFIC. 79. SUPERINTENDENCE AND SOLICITATION. This account shall include the salaries and the office and traveling expenses of officers and their assistants when directly in chaise of traffic, including traffic managers; general freight, express, passenger, and ticket agents; commercial, city, district, and excursion agents; and their clerks and assistants; also the cost of supplies used by employees whose salaries are charged to this account, office rent and cost of repairing rented offices and furniture, and miscellaneous office expenses, when separate offices not in general office buildings are maintained for officers whose salaries are charged to this account. Note A.— It is not intended that any portion of expenses of general offices shall be charged to this account. The office expenses of employees designated above who have offices in general office buildings shall be Included in the appropriate primary accounts under the general account General and Miscellaneous. Note B.— When employees designated above are engaged in work not chargeable to Traffic, their salaries and expenses shall be charged to the specific work on which engaged. Note C. — When employees designated above have supervision over other departments also, their salaries and expenses shall be apportioned equitably among the departments over which they have Jurisdiction. 80. ADVERTISING. This account shall include the salaries and expenses of advertising agents; cost of printing, publishing, and distributing time-tables, folders, notices to shippers, and other advertising matter; advertising in newspapers and periodi- cals for the purpose of securing traffic; signs on cars advertising special events; portable signs for attracting traffic; bulletin boards, cards, cases, display cards, and photographs; postage and express charges on advertising matter; cost of bill posting; donations made for traffic purposes and for entertaining conventions- and similar expenses. 81. PARKS, RESORTS, AND ATTRACTIONS. This account shall include the coat of maintaining and operating amusement parks, resorts, and other like attractions when such expense is incurred primarily for the purpose of inducing travel upon the line of the carrier. To this account shall be credited all income from admittance fees, sale of privileges, etc. NoTE.-When any such park, resort, or other attraction, the cost of which Is Included in the ac- count for Investment in road and equipment, Is mamtained and operated for any other purpose than that of uiducing travel upon the Itaeof the carrier it shall be considered as an auxiliary opera- tion and its revenues and expenses included in income accounts No. 202 "Auxillarv ooBra- tions-Eevenues," and No. 2U, "Auxiliary operations-Expenses," respecUvely. 82. MISCELLANEOUS TRAFFIC EXPENSES. This account shall include expenses of traffic associations, including member- ship fees, and traffic expenses not property chargeable to other accounts. VI. GEITERAI AND MISCELLANEOUS. 83. SALARIES AND EXPENSES OF GENERAL OFFICERS This account shall include the salaries and the traveling 'and other expenses of the chairman of the board, president, vice president, treasurer, secretary OPEEATING EXPENSES. 39 comptroller, auditor, general manager, assistant general manager, chief engineer, general superintendent, purchasing agent, and all other officers whose juris- diction extends over the entire system or all departments; also receiver's fees, and payments to engineering corporations for supervising and managing opera- tions of the company. 84. 8ALABIES AND EXPENSES OF GENERAL OFFICE CLERKS. This account shall include the salaries and the traveling and other expenses of traveling auditors, bookkeepers, cashiers, paymasters, stenographers, clerks employed in counting cash, tickets, and transfers, and all other clerks employed in the general office. The salaries of clerks engaged exclusively in handling the accounts of the maintenance of way, mechanical, store, and other departments, when employed in the general accounting office, shall be charged to this account. 85. GENERAL OFFICE SUPPLIES AND EXPENSES. This account shall include the cost of office supplies, repairs of office furniture and of mechanical calculators, typewriters,-duplicating machines, and other office appliances; wages of janitors, porters, and messengers; rent and cost of repairing rented offices; and miscellaneous expenses of general offices. Note A. — Office expenses of departmental officers shall be charged to the accounts to which their salaries are charged. Note B. — H general offices are in buildings owned by the carrier or held under long-term lease, the cost of repairs shall be included in account No. 24, " Buildings, fixtures, and grounds." 86. LAW EXPENSES. This account shall include all law expenses except those incurred in the defense and settlement of damage claims. It includes salaries and expenses of counsel, solicitors, and attorneys, their clerks and attendants, and expenses of their offices; fees and retainers for services of attorneys not regular employees; cost of law books; cost of printing briefs, legal forms, testimony, reports, etc.; court costs and payments of special, notarial, and witness fees not provided for elsewhere; expenses connected with taking depositions; law expenses of receivers; and all law and court expenses not provided for elsewhere. Note.— The compensation of the general solicitor, counsel, or other attorneys engaged partly In the defense and settlement of damage suits and partly in other legal work, shall be apportbned between this account and account No. 92, "Injuries and damages." 87. RELIEF DEPARTMENT EXPENSES. This account shall include salaries and expenses incurred in connection with conducting a relief department; also contributions made to such department. 88. PENSIONS AND GRATUITIES. This account shall include pensions and gratuities paid to retired or incapaci- tated employees, or heirs of employees, and expenses in connection therewith; also cost of life and benefit insurance on employees. 89. MISCELLANEOUS GENERAL EXPENSES. This account shall include miscellaneous expenses connected with the general management not provided for otherwise, such as cost of telephone service and telegrams, cost of "safety first" or " prevention of accidents" campaigns, subscriptions to newspapers and periodicals, books for company library, fees and expenses paid to directors and trustees, dues and fees for railway associations, cost of free entertainments for employees, fees for filing annual state reports; and also gratuities, subscriptions, and donations, not provided for in account No. 80, "Advertising"; No. 87, "Relief department expenses"; and No. 88, "Pensions and gratuities.'' 40 OPEBATING EXPENSES. 90. VALUATION EXPENSES. This account shall include expenses incident to the ascertainment (.i^^^^^^l^' ance with the Act to Regulate Commerce as amended Maich 1, 1913, or ^^h other Federal or State requirements) of the value of property owed or used by the accounting caxrier, such expenses including the pay and the office traveling and other expenses of officers specially employed or assigned to such work, and of their assistants, clerks, and attendants, and the cost of stationery and printing, and of engineering supplies consumed. NOTE.-NO charge shaU be made to this acootmt for the salaries of officers o- of thefr clerks aad attendants for inckntal services in connection with valnation work but ^P^^^l °ffl«^^' f f^'<^' traveling, and incidental expenses incurred by these officers on account of such work shall bo in- cluded as a part of the cost of the work. 91. AMORTIZATION OP FRANCHISES. This account shall include each month a monthly proportion of the amount paid for limited franchises. The amount charged to this account shall be based upon a plan determined by the accounting company, the purpose and effect of such plan being to accumu- late by charges equitably distributed throughout the life of any franchise, a reserve that will, at the expiration of its life, equal the amount paid therefor. Note A.— Amounts charged to this account shaU be concurrently credited to balance-sheet account No. 444, " Reserve for amortization of franchises." Note B.— See road and equipment account No. 545, " Franchises." 92. INJURIES AND DAMAGES. This account shall include expenditures on account of persons killed or injured and property damaged; compensation paid employees injured while in performance of their duties; salaries and expenses of claim agents, investigators, adjusters, and others engaged in the investigation of accidents and adjustment of claims; salaries, fees, and expenses of surgeons and doctors; medical and surgical supplies, nursing and hospital attendance ; fees and expenses of coroners and under- takers; and fees of witnesses and others. To this account shall be charged also law expenses incurred in connection with the defense or settlement of damage claims, including the compensation of general solicitor or counsel; salaries, fees, and expenses of attorneys, fees of court stenographers; costof lawbooks; cost of appeal bonds; cost of printing brief s, and court and other records; court costs, expenses connected with taking depositions, and other like expenses connected with the settlement of claims for injuries and damages. The cost of repairing another company's tracks and equipment as the result of collisions, derailments, etc., shall be included in this account. If desired, the carrier may charge to this account monthly and credit to a reserve account, a proportion of the total amount estimated to be necessary to expend during the year for injury and damage claims and the actual disburse- ments above designated shall then be charged against said reserve account. The charges to this account shall be adjusted at the close of the fiscal year to actual expenses unless a balance remains representing liability for unsettled claims. Note A.— The compensation of the general solicitor or counsel and other attorneys engaged partly in the defense or settlement of damage suits and partly in other legal work shall be apportioned between this account and account No. 86, "Law expenses." Note B.— This account shall not Include the expenses incurred in connection with the settle- ment of claims for loss, damage, or delay of goods intrusted for transportation. (See account No. 77 "Loss and damage.") Note C— The cost of repairs to a company's own tracks and equipment, necessitated by colli- sions, derailments, etc., shall be charged to the appropriate maintenance accounts. •Note D.— For their own information carriers may distribute Items Included in this account, but such distribution shaU not afiect the reports to the Interstate Commerce Commission. Reports to the Commission shall show the total of the items chargeable to this account, as required by the text. OPERATING EXPENSES. 41 93. INSURANCE. This account shall include piemiums paid for fire, fidelity, boiler, casualty, burglary, workmen's compensation, and other insurance; also amounts set aside as an insurance reserve by a company carrying its own insurance in whole or in part. Note A. — Insurance on supplies and materials in transit shall not be charged to this account, but shall be considered as part of the cost of such supplies and materials. Note B. — For their own information carriers may distribute items included in this account, but such distribution shall not affect the reports to the Interstate Commerce Commission. Reports to the Commission shall show the total of the items chargeable to this account as required by their text. 94. STATIONERY AND PRINTING. This account shall include expenditures for stationery and printing, postage, and stationery supplies, except as provided for elsewhere. The cost of printing tickets, transfers, cash fare receipts, baggage checks, hat checks, milk checks, and waybills shall be charged to this account. Note A. — The cost of printing briefs and other legal papers shall be charged to account No. 86, "Law expenses," or No. 92, "Injuries and damages." The cost of printing signs, posters, and other advertising matter shall be charged to account No. 80, "Advertising." Note B. — The cost of repairing mechanical calculators, typewriters, duplicating machines, and other office appliances, if for use of general offices, shall be charged to account No. 85, " General office supplies and expenses," and if for the use of departmental offices, to the accounts to which the expenses of such offices are chargeable. Note C. — For their own information carriers may distribute Items Included In this account, but such distribution shall not affect the reports to the Interstate Commerce Commission. Eeporta to the Commission shall show the total of the items chargeable to Oils account as required by the text. 95. STORE EXPENSES. This account shall include the salaries and expenses in connection with storerooms, including cost of sending material and supplies from general store- rooms to branch storerooms, and cost of handling scrap material in store. Note.— For their own information carriers may distribute Items included In this account, but such distribution shall not affect the reports to the Interstate Conlmerce Commission. Eeports to the Commission shall show the total of the items chargeable to thj» account as required by the text. 96. GARAGE AND STABLE EXPENSES. This account shall include the salaries and wages of drivers, chauffeurs, stablemen, garagemen, and other employees in garages and stables; cost of feed, keep, and shoeing of horses; veterinary and other stable expenses; fuel, gaso- lene, and all other materials and supplies for garages and stables. This account shall include the stable expenses of all horses, regardless of where they are used. Amounts received from sale of manure shall be credited to this account. Note A.— The cost of replacing horses lost by death or worn out in service (tmless a reserve has been created for their replacement by charges to Operating Expenses) and repairs of harness and vehicles shall be charged t» account No. 38, "Vehicles and horses." Note B. — For their own information carriers may distribute items included in this account, but such distribution shall not affect the reports to the Interstate Commerce Commission. Reports to the Commission shall show the total of the items chargeable to this account as required by the text. Note C. This account shall not Include wages of chauffeurs, drivers, and helpers, and other expenses incident to the collection and delivery of freight and express matter provided for in account No. 76, "Freight and express collection and delivery." 97. RENT OP TRACKS AND FACILITIES. This account shall include amounts paid for rent or use of tracks, electric lines, terminals, and bridges, whether a fixed charge per month or per year. 42 OPERATING EXPENSES. a proportion of interest on valuation, a proportion of expenses incurred in maintaining and operating such properties, an amount based on car mileage, a charge per car or passenger, or any other arrangement, when such property is used jointly by the accounting and other carriers. Note.— Rent of leased line no longer operated by the lessor company is not considered an operat- ing ejcpense, and therefore shaU not be charged to this account, but treated as a deduction from income under account No. 216, "Rent for leased roads." 98. RENT OF EQUIPMENT. This account shall include payments to other companies for rent or use of their cars, electric equipment of cars, and other rail equipment, on whatever basis such rent may be determined. This account shall include the gross amount paid for rent of equipment and not the net balance between the amounts paid and received for rent of equip- ment. 99. OTHER OPERATIONS— DR. This account shall include debits representing the proportion of operating expenses chargeable to general and miscellaneous expenses of the railway depart- ment, but the distributed charges for which have been made to the primary accounts of another coordinate department, such as an electric power, light, or heat department within the same company. 100. OTHER OPERATIONS— OR. This account shall include credits representing the proportion of operating expenses included under the general account General and Miscellaneous charge- able to the accounts of another coordinate department, such as an electric power, light, or heat department within the same company, the distributed charges for which have been made to the primary accounts of the railway department. VII. TRANSPORTATION FOR INVESTMENT— CR. This account shall include credits representing the cost (estimated if not known) of transporting men engaged in and material to be used for new con- struction and for additions and betterments when such expenses have been charged to the foregoing accounts and a proportion thereof is properly includible as a part of the cost of construction. Note A.— Credits to this account shall be concurrently charged to the appropriate property in- vestment accoimta. Note B.— A detailed analysis of this account will be required to be made in the carrier's annual report to the Commission. OPERATING REVENUE ACCOUNTS. GENERAL INSTRUCTIONS. Page. 1. Accounts for operating revenues 45 2. Auxiliary operations 45 3. Distribution of delayed items 45 GENERAL ACCOUNTS. I. Revenue prom transportation 47 II. Revenue from other railway operations 48 PRIMARY ACCOUNTS. I. Revenue from transportation — 101. Passenger revenue 47 102. Baggage revenue 47 103. Parlor, sleeping, dining, and special car revenue 47 104. Mail revenue 47 105. Express revenue 47 106. Milk revenue 48 107. Freight revenue 48 108. Switching revenue 48 109. Miscellaneous transportation revenue 48 II. Revenue prom other railway operations — 110. Station and car privileges 48 111. Parcel room receipts 48 112. Storage 48 113. Demurrage 48 114. Telephone and telegraph service 49 115. Rent of tracks and facilities 49 116. Rent of equipment 49 117. Rent of buildings and other property 49 118. Power 49 119. Miscellaneous 49 43 GENERAL INSTRUCTIONS. 1. AccotTNTS FOR OPERATING REVENUES. — The accounts provided for operating revenues are designed to show amounts of money which the carrier becomes entitled to receive from transportation by rail and from services incident thereto. No charge shall be made against the accounts of this classification for amounts rep- resenting tariff charges which for any cause are uncollected, the service for which the charge ia made having been properly performed and individuals or companies being liable for the charges. Uncollectible charges against individuals and companies, representing tariS charges for transportation service rendered for which such individuals and companies are liable, shall be charged to income account No. 225, "Miscellaneous debits." This includes items such as charges where credit has been extended and the debtor be-' comes insolvent, and also uncollectible undercharges discovered after the service has been rendered. 2. ArxiLiART Operations. — ^If a carrier conducts a general power, light, heat, or other business not incident to transportation, the entire revenue of each of such operations shall be stated separately in subaccounts under income account No. 202, "Auxiliary operations— Bevenues." (See general instructions for operating ex- penses, sections 2 and 3.) 3. Distribution op Delated Items. — Detaj/«d items are items representing trans- actions which occurred before the current year. When no provision has been made through entries in the accounts of this classification for anticipating delayed items creditable to the accounts herein, and the amount of any such item is relatively so large that its inclusion in the accounts for a single year would unduly affect those accounts for that year, when so authorized upon application to the Interstate Com- merce Commission, the carrier shall distribute to Profit and Loss so much of the amount as may be authorized. The application to the Commission for exceptional accounting for delayed items shall give full particulars concerning the item, and the reasons which, in the carrier's judgment, indicate the need for a special accounting rule. 45 TEXT PERTAINING TO OPERATING REVENUE ACCOUNTS. I. REVENUE FEOM TRANSPORTATION. 101. PASSENGER REVENUE. This account shall include amounts earned for the transportation of passen- gers. To it shall be credited the carrier's proportion of receipts from the sale of tickets and transfers and from the collection of cash fares. To this account shall be charged amounts paid for fares refunded and for tickets and transfers redeemed; also amounts paid for transferring passengers and baggage between stations, except in cases where the transfer of both passen- gers and baggage is provided for in the division of the through rate. Note A.— Cash fare penalty collections made by conductors and the proportion of amounts derived from sales of mileage tickets and mileage credentials, and subject to refund, shall not be credited to this account. Note B. — Receipts from mileage books when sold shall be credited to an open account, which account shall be charged and this account credited as the mileage is honored for transportation. A similar practice may be followed in connection with the sale of strip, coupon, and other tickets. 102. BAGGAGE REVENUE. This account shall include amounts earned for the transportation of baggage in excess of free authorized allowances; and for transportation of packages, arti- cles, dogs, etc., as baggage. To this account shall be charged all baggage refunds. 103. PARLOR, SLEEPING, DINING, AND SPECIAL CAR REVENUE. This account shall include amounts earned for seat accommodations furnished in parlor, observation, chair, and other special passenger cars, including reve- nue from cars chartered for special passenger service, from berth and seat accom- modations furnished in sleeping cars, and from meals, beverages, cigars, tobacco, and other articles sold on dining, sleeping, and special cars. To this account shall be charged the cost of provisions, beverages, cigars, tobacco, and other articles sold on dining, sleeping, and special cars. To this account shall be charged also amounts previously credited thereto representing refunds of fares for accommodations, refunds of overcharges resulting from the use of erroneous rates, and other authorized refunds. 104. MAIL REVENUE. This account shall include amounts earned for the transportation of mails and for the use of railway mail cars, for use of special facilities, and from bonuses for special mail transportation. To this account shall be charged fines and penalties imposed by the Govern- ment, when not collected from agents or employees. 105. EXPRESS REVENUE. This accoimt shall include amounts earned for transportation of express matter and for use of facilities on cars and at stations incident to such transportation, but not including the separate rents of offices at stations. When a railway company transacts an express business through its regular railway organization, the earnings therefrom shall be credited to this account. The revenue from express traffic handled under contract with an express com- pany, regardless of the arrangement or basis upon which the compensation is fixed, shall be credited to this account. 47 48 OPBEATING EEVENTJES. The term express is intended to cover matter handled at a higher rate than for freight on account of quicker service or collection and delivery. NoTE.-Bent receivable for rooms at stations used by others in connection with express service shaU be credited to account No. 117, "Kent of buUdings and other property." 106. MILK REVENUE. This account shall include amounts earned for the transportation of milk and cream. To this account shall be charged refunds and overcharges on milk and cream BO carried. 107. FREIGHT REVENUE. This account shall include amounts earned for the transportation of freight, other than milk and cream. To this account shall be charged overcharges paid, resulting from the use of erroneous rates, weights, or classification; amounts paid under tariff authority for switching, drayage, and cartage; authorized allowances; uncollected earnings on freight destroyed in transit, and on short and lost freight. Note A. — Other carriers' proportions of revenue paid by the carrier on freight lost or destroyed in transit shall be charged to operating expense account No. 77, "Loss and damage." Note B . — Uncollectible undercharges and uncollectible freight charges discovered after the service has been rendered shall be charged to income account No. 225, " Miscellaneous debits." (See general instructions, section 1.) 108. SWITCHING REVENUE. This account shall include amounts earned for switching service. To this ac- count shall be charged all overcharges on such switching service. 109. MISCELLANEOUS TRANSPORTATION REVENUE. This account shall include all amounts earned from transportation and not pro- vided for elsewhere. II. REVENUE FEOM OTHEB RAILWAY OPEEATIOITS. 110. STATION AND CAR PRIVILEGES. This account shall include revenues from weighing, vending, and other auto- matic machines located at stations; from advertising at stations and on cars' from news companies or others for the privilege of operating news stands at stations and selling papers, periodicals, fruit, etc., on cars; from telephone com- panies for the privilege of installing and operating commercial telephones at sta- tions; and from similar sources. HI. PARCEL ROOM RECEIPTS. This account shall include revenues from the operation of parcel rooms 112. STORAGE. This account shall include revenues from storage of freight and basease To this account shall be charged authorized refunds of amounts received for such storage. 113. DEMURRAGE. This account shall include revenue from penalties for delay in load' unloading cars. » * To this account shall be charged authorized refunds of amounts reo " h such penalties. OPERATING BEVENTJES. 49 114. TELEPHONE AND TELEGRAPH SERVICE. This account shall include revenues from commercial telephone and tele- graph business transacted by it, when the expense of transacting such business can not be separated from the expense of conducting the railway service; also amounts received from telephone and telegraph companies, whether as pro- portion of earnings or otherwise, for the privilege of transacting a commercial telephone or telegraph business in offices along the carrier's lines, when the car- rier furnishes some service of employees whose wages are included in its oper- ating expenses. Note.— When a telephone or telegraph company rents the telephone or telegraph line of the carrier and pays all expenses Incident to its maintenance and operation, the rent received by the carrier shall be credited to account No. 204, " Miscellaneous rent income." 115. RENT OF TRACKS AND FACILITIES. This account shall include amounts received as rent for use of tracks, electric Unes, terminals, bridges, and other facilities whether a fixed charge per month or per year, a proportion of interest on valuation, a proportion of expenses incurred in maintaining and operating such properties, an amount based on car mileage, a charge per car or passenger, or any other arrangement, when such property is used jointly by the accounting and other carriers. Note. — Income from leased lines not operated by the lessor shskU be included in account No. 203, "Income from lease of road." 116. RENT OF EQUIPMENT. This account shall include amoimts received as rent for use of cars, electric equipment of cars, and other equipment, on whatever basis such rent may be determined. This account shall include the gross amount received for rent of equipment and not the net balance between the amounts received and paid for rent of equipment. 117. RENT OF BUILDINGS AND OTHER PROPERTY. This account shall include rents of buildings, land, and other property, such as depot and station grounds ^nd buildings, general and other offices, rooms rented at stations, docks, wharves, ferry landings, section and other houses, etc., when such property is used in connection with operations. Receipts from other companies for privilege of attaching wires to the carrier's poles shall also be credited to this account. Note.— Income from rent of real estate, purchased or conducted as an outside investment, shall be included in account No. 205, "Net income from miscellaneous physical property," or No. 219, "Net loss on miscellaneous physical property." 118. POWER. This account shall include all amounts earned for power sold if a carrier does not conduct a general power, light, or heat business. Note. If a carrier conducts a general power, light, or heat business, such business shall be considered an auxiliary operation, and the revenues earned therefrom shall be credited to a sepa- rate account. The expenses of conducting such auxiliary operations shall be excluded from the operating expenses of the railway by means of the several accounts entitled " Other operations— Cr." The revenues and expenses of these operations shall be included in income accounts No. 202, "Auxiliary operations — Revenues," and No. 214, "AuxiUary operations— Expenses." (See section 2of the general instructions for operating expenses.) 119. MISCELLANEOUS. This account shall include all revenues derived from operations other than transportation and not includible in the foregoing revenue accounts. 42130°— 14 i INCOME ACCOUNTS. INCOME STATEMENT. Page. Fonn of income statement 53 GENERAL INSTRUCTIONS. i. Income accounts defined 55 2. Delayed items 55 3. Auxiliary operations 55 4. Income from sinking and reserve funds 55 PRIMARY ACCOUNTS. Orbmts: 201. Railway operating revenues 57 202. Auxiliary operations — Revenues 57 203. Income from lease of road 57 204. Miscellaneous rent income 57 205. Net income from miscellaneous physical property 58 206. Dividend income 58 207. Income from funded securities 58 208. Income from unfunded securities and accounts 58 209. Income from sinking fund and other reserves 59 210. Release of premiiuns on funded debt 59 211. Contributions from others 59 212. Miscellaneous income 59 Debits: 213. Railway operating expenses 59 214. Auxiliary operations — Expenses 59 215. Taxes aasignable to railway operations 59 216. Rent for leased roads 60 217. Miscellaneous rents 60 218. Miscellaneous taxes 60 219. Net loss on miscellaneous physical property 61 220. Interest on funded debt 61 221. Interest on unfunded debt 61 222. Amortization of discount on funded debt 61 223. Income transferred to other companies 61 224. Maintenance of oiganization — Lessor companies ., 62 225. Miscellaneous debits 62 61 FORM OF INCOME STATEMENT. Explanatory Note. — ^The income statement is designed to show the results from transportation operations and other business of the accounting company during any specified period. I. Operating Income: 201. Railway operating revenues. 213. Railway operating expenses. Net revenue (or deficit) — Railway operations. 202. Auxiliary operations — Revenues. 214. Auxiliary operations — Expenses. Net revenue (or deficit) — Auxiliary operations. Net operating revenue (or deficit). 215. Taxes assignable to railway operations. Operating income (or loss). II. NONOPEBATING INCOME : 203. Income from lease of road. 204. Miscellaneous rent income. 205. Net income from miscellaneous physical property. 206. Dividend income. 207. Income from funded securities. 208. Income from unfunded securities and accounts. 209. Income from sinking fund and other reserves. 210. Release of premiums on funded debt. 211. Contributions from others. 212. Miscellaneous income. Total nonoperating income. Gross income (or loss). in. Deductions from Gross Income: 216. Rent for leased roads. 217. Miscellaneous rents. 218. Miscellaneous taxes. 219. Net loss on miscellaneous physical property. 220. Interest on ftmded debt. 221. Interest on unfunded debt. 222. Amortization of discount on funded debt. 223. Income transferred to other companies. 224. Maintenance of organization — Lessor companies. 225. Miscellaneous debits. Total deductions from gross income. Net income (or loss) transferred to credit (or debit) of Profit and ^^- 63 GENERAL INSTRUCTIONS. 1. Incoue Accounts Defined. — Income accounts are accounts designed to show the total amount of money that a company receives or becomes entitled to receive from its transportation and other operations during a stated period, the returns upon investments accrued during the period, the disbursements and the obligations incurred that affect the amounts so received or accrued, the disposition or allocation of the income accrued, and the net balance of income (or loss) carried to the Profit and Loss Account. Where the title and definition of an income account clearly indicate that it is a summary of other accounts, it is not required that a special ledger account shall be kept imder such' a title to include the balances from the accounts usually carried in the ledger, but in such case the titles of the subaccounts in the ledger shall give a reference by number or title, or both, to the account prescribed herein of which they are subdivisions. 2. Delated Items. — Delayed items are items representing transactions which occurred before the current year. When no provisions have been made through entries in the accounts of this classification for anticipating delayed items chargeable or creditable to Income, and the amoimt of any such item is relatively so large that its inclusion in the accounts for a single year would seriously distort those ac- counts for that year, the carrier, if so authorized upon application to the Interstate Commerce Commission, shall distribute to Profit and Loss so much of the amount as may be authorized. The carrier shall file, in its application to the Commission, the full particulars concerning each item and the reasons which in its judgment indicate the need for a special accounting rule. 3. Atjxeliakt Operations. — See general instructions for operating expenses, sec- tion 2. 4. Income from Sinking and Reserve Funds. — ^Accrued interest on uninvested sinking fund cash on deposit in banks or trust companies and accrued interest and other income from stocks, bonds, or other assets held in sinking and reserve funds shall be credited to account No. 209, "Income from sinking fund and other reserves," and if mortgage or other provisions respecting the funds require that such interest and other income shall be retained in the funds in the hands of trustees, the amounts of interest and other income shall be charged to the funds. Concurrently, a journal entry shall be made, charging account No. 309, "Appro- priations of surplus to sinking fund and other reserves," and crediting account No. 449, "Sinking fund reserves," or No. 450, "Miscellaneous fund reserves," as may be appropriate. 55 TEXT PERTAINING TO INCOME ACCOUNTS. CREDITS. 201. RAILWAY OPERATING REVENUES. This account ahall include the total revenues derived from railway opera- tions and operations incident thereto as shown iu the accounts provided in the classification of operating revenues. 202. AUXILIARY OPERATIONS— REVENUES. This account shall include the total revenues derived from auxiliary opera- tions. If a carrier conducts a general power, light, heat, or other business, not inci- dent to transportation operations, the entire revenues from each of such opera- tions shall be stated separately in subaccounts under this account. (See gen- eral instructions for operating expenses, section 2.) 203. INCOME FROM LEASE OP ROAD. This account shall include the amount receivable by the carrier for the exclu- sive use of road, tracks, or bridges (including equipment and other railway property, if covered by the contract) owned or controlled, but not operated, by the accounting company, and held by another company under lease or other agreement, whether such amounts are payable directly to the accounting com- pany or are disbursed by the lessee on behalf of the accounting company as inter- est on funded debt, guaranteed dividends on stock, or otherwise. When the lessor company maintains the road and equipment leased, the cost of maintaining the property rented shall be charged to this account. If, under the terms of a lease, the deficit, or any portion of it, resulting from the lessee company's operations of the property leased is payable by the lessor company, the amount thus payable shall be charged to this account by the lessor. Note A. — Wben taxes on leased property are assumed by the lessor, the accruals of such taxes shall he included in the lessor's account No. 215, "Taxes assignable to railway operations." Note B. — If property the rent of which is chargeable to account No. 216, " Rent for leased roads," is sublet by the accounting company, the rent receivable therefor shall be credited to this account. 204. MISCELLANEOUS RENT INCOME. This account shall include such rents of property owned and controlled by the accounting carrier as are not provided for elsewhere. To this account shall be charged the cost of maintenance of the property rented, and incidental expenses in connection with such property, such as the cost of negotiating contracts, advertising for tenants, fees paid conveyancers, collectors' commissions, and analogous items. If property, the rent of which is charged to account No. 217, "Miscellaneous rents," is sublet by the accounting company, the rent receivable therefor shall be credited to this account. Note A.— If the expenses of the property leased can not be separated from the expenses of property used in the company's operations, the rents shall be credited to revenue account No. 117, "Bent of buildings and other property." Note B.— Taxes assumed by the accounting company on property the rent of which is credited to this account, shall be charged to account No. 215, "Taxes assignable to railway operations." Note C— The rent of property carried in balance-sheet account No. 404, "Miscellaneous physical property," shall beinoluded in account No. 205, "Net income from miscellaneous physical property," or No. 219, "Net loss on miscellaneous physical property," as may be appropriate. Note D.— Kent and other income from real estate acquired for road and equipment shall bs credited to account No. 550, " Miscellaneous," until the completion or coming into service of the property. g^ 58 INCOME ACCOUNTS. 205. NET INCOME FROM MISCELLANEOUS PHYSICAL PROPERTY. This account shall be credited with the revenues or income from P^y«J^* property carried in balance-sheet account No. 404, "Miscellaneous physical property," and shaU be charged with the cost of maintaining ^^^id operating tne property, with taxes assessed directly upon such property and with inciaeniai and other expenses in connection therewith, such as cost of negotiating con- tracts, advertising for tenants, insurance, water rates or rents, conveyancers fees, and collectors' commissions. N0TE.-If the net balance is a debit, it shaU be shown under account No. 219, "Net loss on mis- cellaneous physical property." 206. DIVIDEND INCOME. This account shall include dividends declared on railway and other stocka the income from which is payable to the accounting company, whether such stocks are owned by the accounting company and held in its treasury or deposited in trust, or are controlled through lease or otherwise. Accruals of guaranteed dividends may be included in this account if their payment is reasonably assured. Note A.-This account shall not include credits lor dividends on stocks issued or assumed by the accounting company and owned by it, whether held in its treasury. In special deposits, in smking or other reserve lunds, or pledged as collateral. Note B.— Dividends on stocks of other companies held in sinking or other reserve funds shaU be credited to account No. 209, "Income from sinking fund and other reserves." 207. INCOME FROM FUNDED SECURITIES. This account shall include interest on funded securities of railway and other companies, the income from which is payable to the accounting company, whether such securities are owned by the accounting company and held in its treasury, deposited in trust, or controlled through lease or otherwise. Interest accrued shall not be credited imless its payment is reasonably assured. In other cases the credit to this account shall be based upon the interest actually collected. At the option of the accounting company there may be included in this account the portion, applicable to the fiscal period, of the amount requisite to extinguish during the interval between the date of acquisition and the date of maturity the discount or premium on funded securities of other companies. Note A.— Amounts credited or charged for the purpose of extinguishing discount or premium shall be concurrently charged or credited to the account in which the cost of the securities is carried. Note B. — The term funded securities, as here used, means all unmatured bonds, notes, and other evidences of indebtedness (except open accounts for advances) none of which, by the terms of the creation of the debt matures until more than one year after the date of such creation, provided that In case of an obligation maturing serially, such as car-trust notes, the entire amount shall be Included In funded securities if any portion of the obligation matures later than one year after date of issue. Note C. — This account shall not include interest on funded securities issued or assumed by the accounting company and owned by it, whether held in its treasury, in special deposits, in slnkfaig or other reserve funds, or pledged as collateral. Note D. — Interest on funded securities of other companies held in sinking or other reserve funds shall be included in account No. 209, "Income from sinking fund and other reserves." Note E.— Interest accruing after maturity on any securities not tn sinking or other reserve funds shall be included in account No. 208, "Income from unfunded securities and accounts." 208. INCOME FROM UNFUNDED SECURITIES AND ACCOUNTS. This accoimt shall include interest on unfunded securities, notes, and other evidences of indebtedness payable on demand or having dates of maturity one year or less from the date of issue, interest on matured funded debt of other com- panies; interest on bank balances and on open accounts, and other analogous items. Note A.— Interest on assets held in sinking and other reserve funds shall be Included in accounts No. 209, "Income from sinking fund and other reserves." Note B.— Discounts on bills for material and supplies purchased shall be credited to the accounts to which the original invoices were charged. INCOME ACCOUNTS. 59 209. INCOME PROM SINKING FUND AND OTHER RESERVES. This account shall include the income accrued on caah, securities (not issued or assumed by the accounting company), and other assets held in sinking and other reserve funds. At the option of the accounting company there may be included each year in this account the portion, applicable to the fiscal period, of the amount requisite to extinguish, during the interval between the date of acquisition and the date of maturity, the discount or premium on ftmded securities of other companies held in sinking or other reserve funds. Note A. — Amounts credited or charged for the purpose of extinguishing discount or premium shall he concurrently charged or credited to the account in which the cost of the securities Is carried. Note B.— Credits to fund reserve accounts representing Income on reserve funds shall he concur- rently charged to account No. 309, "Appropriations of surplus to sinking fund and other reserves," and credited to balance-sheet account No. 449, "Sinldng fund reserves," or No. 460, "Miscellaneous fund reserves." 210. RELEASE OF PREMIUMS ON FUNDED DEBT. This account shall include, during each fiscal period, such proportion of the premiums on outstanding funded debt obligations as may be applicable to the period. This proportion shall be determined according to the rule provided in section 3 of general instructions for balance-sheet accounts. Note.— The amounts credited to this account shall be concurrently charged to the accounts in which the respective premiums are carried. 211. CONTRIBUTIONS FROM OTHERS. This account shall include amounts received or receivable from other companies or individuals, representing the whole or a part of the net deficit of the accounting company, when, under the terms of agreements or contracts, no obligation is incurred for subsequent reimbursement. Note A.— The amount payable shall be charged by the contributing company to account No. 223, "Income transferred to other companies." Note B.— This account shall not include advances covered by balance-sheet account No. 429, "Nonnegotiable debt to afiUiatcd companies." 212. MISCELLANEOUS INCOME. This accoimt shall include all items, not provided for elsewhere, properly creditable to Income Account. DEBITS. 213. RAILWAY OPERATING EXPENSES. This account shall include the total expenses of railway operations as shown in the accounts provided in the classification of operating expenses of electric railways. 214. AUXILIARY OPERATIONS-EXPENSES. This account shall include the total expenses incurred in auxiliary operations. If a carrier conducts a general power, light, heat, or other business not incident to transportation, the entire expenses of each of such operations shall be stated separately, in subaccounts under this account. (See section 2 of gen- eral instructions for operating expenses.) 216. TAXES ASSIGNABLE TO RAILWAY OPERATIONS. This account shall include Federal, State, county, municipal, school, and other district taxes relating to railway property, operations (including auxiliary operations), and privileges, whether the assessment is based on the valuation of property on the amount of stocks and bonds issued or outstanding with respect to 60 INCOME ACCOUNTS. Buch property, on the gross or net income or earnings (including Federal income tax), on dividends declared, on the number of passengers or the amount of freight carried, on the length of line operated or o-wned, on the rolling stock, or otherwise. This account shall be charged each month with the amount of taxes accruing during the month. When it is not possible to determine the actual accruals, the amount of the annual taxes shall be estimated and one-twelfth of the estimated amount shall be chaiged to this account monthly. The monthly charges shall be adjusted from time to time during the year aa the actual tax levies become known, so as to include, as nearly aa may be practicable, the total amount of the taxes in the accounts of the fiscal year to which they apply. The taxes on leased property used in railway operations shall be included in this account by the carrier obligated to assume such taxes imder the terms of the lease. Note A.— Taxes assessed directly on property covered by balance-sheet account No. 404, "Miscel- laneous physical property," shall be included in account No. 205, "Net income from miscellaneous phjrsical property," or in account No. 219, "Net loss on miscellaneous physical propetty," as may be appropriate. If such property is so intimately connected with railway or auxiliary operations that the taxes can not be segregated, the entire amount shall be included in this account. Note B. — Special assessments for street and other improvements and special benefit taxes, such as water-main taxes, drainage taxes, and the like, shall be included in operating expense or road and equipment accounts, as may be appropriate. Note C— Taxes accrued on new lines under construction or on property acquired for the extension of existing lines shall be charged to road and equipment account No. 649, "Taxes," until the lines are opened for commercial operation or the property acquired becomes available for service. Note D. — Income taxes levied upon bondholders and assumed by the company under terms of the mortgage shall be charged to account No. 225, "Miscellaneous debits." 216. RENT FOR LEASED ROADS. This account shall include amounts payable as rent for road, tracks, or bridges (including equipment and other railway property covered by the contract) of other companies, held under lease or other agreement by the terms of which exclusive use and control for operating purposes are seciired. The amount of rent payable by the lessee in accordance with the agreement shall be included in this account, whether paid to the lessor in cash or disbursed by the lessee, on behalf of the lessor, as interest on funded debt, guaranteed dividends on stock, or otherwise. Note A.— When taxes on leased property are assumed by the lessee the accruals of such taxes shall be included in the lessee's account No. 216, " Taxes assignable to railway operations." Note B.— If, under the terms of a lease, the deficit or any portion of it resulting from the lessee's operation of the property leased Is payable by the lessor company, the amount shaU be charged to account No. 203, "Income from lease of road," by the lessor and credited to this account by the lessee. Note C— If property, the rent of which is charged to this account, is sublet by the accounting com^ pany to others, the rent from the sublease shall be credited to account No. 203, "Income from lease of road." 217. MISCELLANEOUS RENTS. This account shall include rents accrued on property held by the accounting company under lease or other agreement, when such rents are not properly chargeable to account No. 216, "Rent for leased roads," or to Operating Expenses. Note A.-This account shaU not include rents provided for m the classification of operatine expenses. Kent of property used in auxiliary operations shaU be charged to account No 214 "Auxiliary operations— Expenses." ' Note B.-If property the rent of which is chargeable to this, account is sublet by the accounting company to others, the rent from the sublease shaU be credited to account No 204 "Mi«.i.n«n»™4 rent fricome." ' ^"sceuaneous 218. MISCELLANEOUS TAXES. This account shall include all accruals for taxes other than those provided for in accounts Nos. 205, 215, and 219, such as taxes on securities owned, taxes on income from securities owned, and analogous tax items. INCOME ACCOUNTS. 61 219. NET LOSS ON MISCELLANEOUS PHYSICAL PROPERTY. This account shall be charged with the expense of maintaining and operating physical property the cost of which is included in balance-sheet account No. 404, "Miscellaneous physical property, " with taxes assessed directly upon such prop- erty, and with incidental and other expenses in connection therewith, such as cost of negotiating contracts, advertising for tenants, insurance, water rates or rents, conveyancers' fees, and collectors' commissions. To this account shall be credited the revenues or income from such property. Note.— If the net balance is a credit, it shall be shown under account No. 205, " Net income from miscellaneous physical property." 220. INTEREST ON FUNDED DEBT. This account shall include the current accruals of interest on all classes of funded debt, as defined in balance-sheet account No. 427, "Funded debt unma- tured, " issued or assumed by the accounting company; and interest on receiver's certificates issued for a term of more than one year. Note A.— This account shall not include charges for interest on funded debt obligations issued or assnmedhy the accounting company and owned by it, whether held in its treasury, in special deposits, In sinking or other reserve funds, or pledged as collateral. (See account No. 309, "Appropriations of surplus to sinking fund and other reserves.") Note B. — When funded debt is incurred for new lines and extensions, or for addition and betterment purposes, the accruals of Interest on such funded debt to the date of completion or coming into service of the property so acquired shall be included in road and equipment account No. 647, "Interest dur- ing construction." 221. INTEREST ON UNFUNDED DEBT. This account shall include interest accrued on unfunded debt, such as short- tenn notes payable on demand or having dates of maturity one year or less from dates of issue; interest on receiver's certificates issued for a term of one year or less; interest on matxired funded securities and open accounts; and other anal- ogous items, including discount on short-term notes payable. Note.— When short-term notes or other evidences of unfunded indebtedness are issued for new lines or extensions or for addition and betterment purposes the accrual of interest to the date of comple- tion or coming into service of the property shall be included in road and equipment account No. 647, "Interest during construction." 222. AMORTIZATION OF DISCOUNT ON FUNDED DEBT. This account shall be charged during each fiscal period with the proportion of the unextinguished discount and expense on funded debt obligations applicable to that period. This proportion shall be determined according to a rule, the uniform application of which throughout the interval between the date of sale and the date of maturity will extinguish the discount and expense on funded debt. The charge to this account for any period shall not be either greater or less than the proportion applicable to that period, so long as any portion of the discount and expense remains unextinguished. (See general instructions for balance-sheet accounts, sections.) Note.— The accoimting company may, at its option, charge to profit and loss account No. 313, "Debt discount extinguished through surplus," all or any portion of the discount and expense on funded debt remaining at any time unextinguished 223. INCOME TRANSFERRED TO OTHER COMPANIES. This account shall include the whole or any portion of the income of the accounting company payable to another company under the terms of agreements or contracts and without obligation for reimbursement. Note A.— The amount receivable by the other company shall be credited by it to account No. 211, "(Dontrlbutions from others." Note B.— Dividends or other payments upon securities issued or assumed by the accounting com- pany shall not be included In this account 62 INCOME ACC0U2S'TS. 224. MAINTENANCE OP ORGANIZATION— LESSOR COMPANIES. This accouBt shall be used by lessor companies only, and shall include the cost of maintaining the oiganization of lessor companies, such aa salaries of officers, clerks, and attendants, office expenses, law expenses, cost of stationery and printing, and cost of supplies. 225. MISCELLANEOUS DEBITS. This account shall include all items not provided for elsewhere and properly chargeable to Income Account, such as income taxes levied iipon bondholders and assumed by the company under terms of mortgages, commissions, and ex- penses for paying interest coupons, and uncollectible freight charges for which service has been rendered. PROFIT AND LOSS ACCOUNTS. GENERAL INSTRUCTIONS. Page. 1. Profit and loss accounts 65 2. Delayed items 65 PRIMARY ACCOUNTS. Credits: 301. Credit balance at beginning of fiscal period 67 302. Credit balance transferred from Income Account 67 303. Profit on road and equipment sold 67 304. Delayed income credits 67 305. Donations 67 306. Miscellaneous credits 68 Debits: 307. Debit balance at beginning of fiscal period 68 308. Debit balance transferred from Income Account 68 309. Appropriations of surplus to sinking fund and other reserves 68 310. Dividend appropriations of surplus 68 311. Appropriations of surplus for investment in physical property 69 312. Stock discoimt extinguished through surplus 69 313. Debt discount extinguished through surplus 69 314. Miscellaneous appropriations of surplus 69 315. Loss on road and equipment retired 69 316. Delayed income debits 69 317. Miscellaneous debits 70 63 GENERAL INSTRUCTIONS. 1. Profit AND Loss Acco¥nts. — Profit and loss accounts are those designed to show the changes in the corporate surplus or deficit as effected during each fiscal period by the operations and business transactions during that period, by appropriations of surplus made at the option of the carrier, by accounting adjustments not properly attributable to the period, or by miscellaneous losses or gains not provided for else- where; and to show also the unappropriated surplus of the carrier at the date of the balance sheet. Where the title and definition of a profit and loss account clearly indicate that it is a summary of other accounts, it is not required that a special ledger account shall be kept under such a title to include the balances from the accounts usually carried in the ledger, but in such case the titles of the subaccounts in the ledger shall give a reference by number or title, or both, to the account prescribed herein of which they are subdivisions. 2. Delated Items. — Delayed item; are, items representing transactions which occurred before the current fiscal year. When no provisions have been made through entries in the operating revenue, operating expense, or other income accounts for anticipating delayed items chargeable or creditable thereto, and the amount of any such item is relatively so large that its inclusion in the accounts for a single year would seriously distort those accounts for that year, the carrier, when so authorized upon application to the Interstate Commerce Commission, shall distribute to Profit and Loss so much of the amount as may be authorized. The application to the Commission for exceptional accounting for delayed items shall give full particulars concerning each item and the reasons which, in the carrier's judgment, indicate the need for a special accounting rule. 42130°— 14 5 65 TEXT PERTAINING TO PROFIT AND LOSS ACCOUNTS. CREDITS. 301. CREDIT BALANCE AT BEGINNING OF FISCAL PERIOD. This account shall include the net credit balance in the Profit and Loss Account at the beginning of the fiscal period. 302. CREDIT BALANCE TRANSFERRED FROM INCOME ACCOUNT. This account shall include the net credit balance brought forward from the Income Account for the fiscal period. ' 303. PROFIT ON ROAD AND EQUIPMENT SOLD. This account shall include the proceeds from the sale of property in excess of the amount at which such property was carried in road and equipment accounts at the time of sale. 304. DELAYED INCOME CREDITS. This account shall include relatively large credits relating to operating reve- nue, operating expense, and other income accounts of previous fiscal periods. This account shall be used only after permission of the Interstate Commerce Commission has been obtained. (See section 6 of the general instructions for the classification of operating expenses, section 3 of the general instructions for operating revenues, section 2 of the general instructions for income accounts, and section 2 of the general instructions for profit and loss accounts.) Note A. — Except as provided for above, delayed items relating to operating revenue, operating expense, and otlier income items shall be included in the appropriate revenue, expense, or other Income accounts for the fiscal period in which the audit of the item occurs. Note B. — All entries in this account shall be made in such detail as will indicate the operating revenue, operating expense, or other income accounts to which they relate. 305. DONATIONS. This account shall include amounts of cash or its equivalent in estimated money value at the time of acquisition of lands or other property donated by individuals or companies for the construction or acquisition of property. It shall also include donations made by individuals and companies in connection with the construction of new lines for the purpose of compensating the carrier for loss sustained during the early period of operation. Any advances made by individuals or companies with absolute or conditional provision for partial or complete reimbursement shall not be considered a dona- tion prior to the fulfillment of all conditions, and then only to the extent to which the liability for reimbursement is nullified or negatived. Prior to such determination the amounts received shall be credited in account No. 446, "Other unadjusted credits." Note.— Donations made by States, municipalities, and other public corporations as their contri- butions toward the construction or acquisition of property shall be included in balance-sheet account No. 426, " Grants in aid of construction." 67 68 PEOFIT AND LOSS. 306. MISCELLANEOUS CREDITS. This account shall include amounts, not provided for elsewhere, transferred from other accounts to Profit and Loss, and amounts representing increases of resources not properly assignable to the income accounts of the fiscal period for which the accounts are stated. Among the items which shall be included in this account are — Adjustments or cancellations of balance-sheet accounts, Cancellation of balance-sheet accounts representing unclaimed wages and vouchered accounts written off because of carrier's inability to locate the creditor, Profit derived from the sale of investment securities, Profit derived from the sale of property carried in balance-sheet account No. 404, "Miscellaneous physical property," Credits resulting from adjustments required to bring to par securities issued or assumed by the accounting company and reacquired at a cost less than the pat value, Premiums on capital stock at the time of its reacquirement (see section 2 of general instructions for balance-sheet accounts), Unreleased premiums on funded debt reacquired before maturity (see section ^ 3 of general instructions for balance-sheet accounts). Collection of old accounts previously written off. DEBITS. 307. DEBIT BALANCE AT BEGINNING OF FISCAL PERIOD. This account shall include the debit balance in the Profit and Loss Account at the beginning of the fiscal period. 308. DEBIT BALANCE TRANSFERRED FROM INCOME ACCOUNT. This account shall include the net debit balance brought forward from the Income Account for the fiscal period. 309. APPROPRIATIONS OP SURPLUS TO SINKING FUND AND OTHER RESERVES. This account shall include amounts of appropriations of surplus for sinking fund and other reserves, and allotments of surplus or payments of definite amounts from surplus into sinking fund and other reserves under terms of mortgages, deeds of trust, or other contracts that provide for such allotments or payments; and accretions to such funds representing interest or other returns on the assets therein. NoTE.-The amounts charged to this account shall be concurrently credited to balance-sheet account No. 449, "Sinking fund reserves," or No. 450, " Miscellaneous fund reserves." 310. DIVIDEND APPROPRIATIONS OF SURPLUS. This account shall include amounts declared payable as dividends on actually outstanding capital stock issued or assumed by the accounting company This account shall be subdivided so as to show separately the dividends on the various classes of capital stock. If a dividend is not payable in cash the consideration shall be described in the entry with sufficient particularity to identLfv it. NOTE.-This account shall not mclude charges for dividends on capital stock Issued or assumed by the accountmg company and owned by it, whether held in the treasury, in special deposits in sinkmg or other reserve funds, or pledged as collateral. (See account No. 309, "AppronrkHons of surplus to sinking fund and other reserves.") ppropriaiions oi PROFIT AND LOSS. 69 311. APPROPRIATIONS OF SURPLUS FOR INVESTMENT IN PHYSICAL PROPERTY. This account shall include amounts appropriated from surplus, for the con- struction or acquisition of new lines and extensions or for additions to and bet- terments of property the cost of which is includible in the road and equipment accounts, including amounts appropriated for retirement of equipment-trust obligations; and amounts applied for the construction or acquisition of property the cost of which is includible in balance-sheet account No. 404, "Miscellaneous physical property;" also the amount of donations in aid of construction, made by individuals and companies, and not subject to distribution as dividends. These amounts shall be subdivided so as to show (a) amounts expended during preceding fiscal periods, (6) amounts expended during the current fiscal period, and (c) amounts held in reserve. Note.— The amounts charged to this account shall he concurrently credited to balance-sheet account No. 447, "Additions to property through surplus," or to account No. 449, "Sinking fund reserves," or No. 450, "Miscellaneous fund reserves." 312. STOCK DISCOUNT EXTINGUISHED THROUGH SURPLUS. This account shall include amounts appropriated from surplus to reduce or extinguish the amount of discount on capital stock issued by the accounting com- pany. (See balance-sheet account No. 417, "Discount on capital stock, "and gen- eral instructions for balance-sheet accounts, section 2). 313. DEBT DISCOUNT EXTINGUISHED THROUGH SURPLUS. This account shall include appropriations of surplus made, at the option of the accounting company, to reduce or extinguish the discount and expense on funded debt. (See income account No. 222, "Amortization of discount on funded debt," balance-sheet account No. 418, "Discount on funded debt," and general instructions for balance-sheet accounts, section 3). 314. MISCELLANEOUS APPROPRIATIONS OF SURPLUS. Except as provided in account No. 309, "Appropriations of surplus to sinking fund and other reserves," this account shall include amounts appropriated from surplus to provide a reserve for doubtful accounts and for the discharge of the principal (less the discount, if any, suffered at the time of sale) of any indebt- edness incurred in the acquisition or improvement of property the cost of which is included in the road and equipment accounts; also other amounts appropriated from surplus and not provided for elsewhere. 315. LOSS ON ROAD AND EQUIPMENT RETIRED. This account shall include charges to Profit and Loss, as provided for in the classification of accounts for road and equipment, on account of property which has been abandoned, sold, or otherwise retired, and not replaced. 316. DELAYED INCOME DEBITS. This account shall include relatively large debits relating to operating reve- nue, operating expense, and other income accounts of previous fiscal periods. This account shall be used only after permission of the Interstate Commerce Commission has been obtained. (See section 6 of the general instructions for the classification of operating expenses, section 3 of the general instructions for operating revenues, sectioh 2 of the general instructions for the income accounts, and section 2 of the general instructions for profit and loss accounts.) Note A -Except as provided above, delayed items relating to operating revenue, operating expense, and other income items shall be included in the appropriate revenue, expense, or other income account for the fiscal period in which the audit of the item occurs. Note B.-AU entries in this accoun' shaU be made in such detaU as will indicate the operatmg revenue, operating expense, or other income accounts to which they relate. 70 PROFIT AND LOSS. 317. MISCELLANEOUS DEBITS. This account shall include amounts, not provided for elsewhere, chargeable to Profit and Loss Account from other accounts; amounts written off in consequence of adjustments; and payments not properly chargeabte to the income accounts of the fiscal period for which the accounts are stated. Among the items chargeable to this account are — ■ Adjustments or cancellations of balance-sheet accounts, Losses or deficits not properly chargeable to Income and for which no reserve has been provided, Losses resulting from sale of investment securities, Losses resulting from sale, destruction, or abandonment of property carried in balance-sheet account No. 404, "Miscellaneous physical property," Debits resulting from adjustments required to bring to par securities issued or assumed by the accounting company and reacquired at a cost exceeding the par value, Discounts on stock remaining unextinguished at the time of itsreacquirement, Unextinguished discounts on funded debt reacquired before riiaturity. Penalties and fines for violations of law, when not provided for elsewhere. GENERAL BALANCE SHEET ACCOUNTS. BALANCE-SHEET STATEMENT. Page. . Form ot general balance-sheet statement 73 GENERAL INSTRUCTIONS. 1. Balance-sheet accounts ; : 75 2. Discount and premium on capital stock 75 3. Discount, expense, and premium on funded debt 76 4. Contingent assets and liabilities 76 BALANCE-SHEET ACCOUNTS. Debits: 401. Road and equipment 77 402. Sinking funds 77 403. Deposits in lieu of mortgaged property sold 77 404. Miscellaneous physical property 77 405. Investments in affiliated companies 78 406. Other investments 78 407. Cash 79 408. Special deposits 79 409. Loans and notes receivable 79 410. Miscellaneous accounts receivable 79 411. Material and supplies 80 412. Interest, dividends, and rents receivable 80 413. Other current assets 80 414. Insurance and other funds 80 415. Other deferred assets CO 416. Rents and insurance premiums paid in advance 80 417. Discoimt on capital stock 80 418. Discount on funded debt 81 419. Property abandoned chargeable to Operating Expenses 81 420. Other unadjusted debits 81 421. Securities issued or assumed — Unpledged 81 422. Securities issued or assumed — Pledged 82 Credits: 423. Capital stock 82 424. Stock liability for conversion 83 425. Premium on capital stock 83 426. Grants in aid of construction 83 427. Funded debt unmatured 83 428. Receiver's certificates 84 429. Nonnegotiable debt to affiliated companie i 84 430. Loans and notes payable 85 71 72 OENKBAL BALANCE SUEKT. Okedits — Continued. Page. 431. Audited accounts and wages payable 85 432. Miscellaneous accounts payable 85 433. If atured interest, dividends, and rents unpaid 85 434. Matured funded debt unpaid 85 435. Accrued interest, dividends, and rents payable 85 436. Other current liabilities 86 437. Liability for provident funds 86 438. Other deferred liabilities 86 439. Tax liability 86 440. Premium on funded debt 86 441. Insurance and casualty reserves 86" 442. Operating reserves 86 443. Accrued depreciation — Road and equipment 86 444. Reserve for amortization of franchises 87 445. Accrued depreciation — Miscellaneous physical property 87 446. Other unadjusted credits 87 447. Additions to property through surplus 87 448. Funded debt retired through surplus 87 449. Sinking fund reserves 88 450. Miscellaneous fund reserves 88 451. Profit and loss — Balance 88 FORM OF GENERAL BALANCE SHEET STATEMENT. ASSET SIDE. Investments: 401. Road and equipment. 402. Sinking funds- Total book assets at date. {In short column.) Carrier's own issues at date. (In short column.) Other assets at date. {In long column.) 403. Deposits in lieu of mortgaged property sold Total book assets at date. {In short column.) Carrier's own issues at date. (In short column.) Other assets at date. {In long column.) 404. Miscellaneous physical property. • 405. Investments in affiliated companies — (a) Stocks. (6) Bonds. (c) Notes. (d) Advances. 406. Other investments — • (a) Stocks. (6) Bonds, (c) Notes. {d) Advances. (e) Miscellaneous. Total. CuBBENT Assets: 407. Caah. 408. Special deposits — Total book assets at date. (In short column.) Carrier's own issues at date. (In short column.) Other assets at date. {In long column.) 409. Loans and notes receivable. 410. Miscellaneous accounts receivable. 411. Material and supplies. 412. Interest, dividends, and rents receivable. 413. Other current assets. Total. Depeeeed Assets: 414. Insurance and other funds — Total book assets at date. {In short column.) Carrier's own issues at date. (In short column.) Other assets at date. {In long column.) 415. Other deferred assets. Total. Unadjusted Debits: 416. Rents and insurance premiums paid in advance. 417. Discount on capital stock. 418. Discount on funded debt. 419. Property abando ed chargeable to Operating Expenses. 73 74 GENERAL BALANCE SHEET. Unadjusted Debits — Continued. 420. Other unadjusted debits. 421. Securities issued or assumed — Unpledged. {In short column.) 422. Securities issued or assumed — Pledged. {In short column.) Total. LIABILITY SIDE. Stock: 423. Capital stock — Book liability at date. {In short column.) Held by or for carrier at date. {In short column.) Actually outstanding at date. {In long column.) 424. Stock liability for conversion. 425. Premium on capital stock. Total. GovEnNMENTAL Geants: 426. Grants in aid of construction. Long-term Debt: 427. Funded debt unmatured — Book liability at date. {In short column.) Held by or for carrier at date. {In short column.) Actually outstanding at date. {In long column.) 428. Receiver's certificates. 429. Nonnegotiable debt to affiliated companiej — (a) Notes. (6) Open accounts. Total. Current Liabilities: 430. Loans and notes payable. 431. Audited accounts and wages payable. 432. Miscellaneous accounts payable. 433. Matured interest, dividends, and rents unpaid. 434. Matured funded debt unpaid. 435. Accrued interest, dividends, and rents payable. 436. Other current liabilities. Total. DErBRRBD Liabilities: 437. Liability for provident funds. 438. Other deferred liabilities. Total. Unadjusted Credits:. 439. Tax liability. 440. Premium on funded debt. 441. Insurance and casualty reserves. 442. Operating reserves. 443. Accrued depreciation — Road and equipment. 444. Reserve for amortization of franchises. 445. Accrued depreciation— Miscellaneous physical property, 446. Other unadjusted credits. Total. Corporate Surplus: 447. Additions to property through surplus. 448. Funded debt retired through surplus. 449. Sinking fund reserves. 450. Miscellaneous fund reserves. 451. Profit and loss — Balance. Total. GENERAL INSTRUCTIONS. 1. Balance-sheet Accounts. — The term balance-sheet accounts is used to designate those titles under which the ledger accounts are combined and summarized to show the assets, liabilities, and corporate surplus or deficit of the business. Where the title and definition of a balance-sheet account clearly indicate that it is a summary of other accounts, it is not required that a special ledger account shall be kept under such a title to include the balances from the accounts usually carried in the ledger, but in such case the titles of the subaccounts in the ledger shall give a reference by number or title, or both, to the account prescribed herein of which they are subdivisions. 2. DiscoTJNT AND PREMIUM ON CAPITAL Stock. — Ledger accounts shall be pro- vided to cover the discounts and premiums on each class of capital stock issued or assumed by the company. The total of the net debit balances remaining in these several accounts shall be included in account No. 417, "Discount on capital stock," and the total of the net credit balances in account No. 425, " Premium on capital stock." By the term discount is meant the excess of the par value of stocks actually issued or assumed over the actual cash value of the consideration received for such stocks. By the term premium is meant the excess of the actual cash value of the consideration received for stock issued or assumed over the par value of siich stock. Entries in these accounts representing discounts shall be carried therein until offset (1) by premiums realized on subsequent sales of the same class of stock, (2) by assessments levied on the stockholders, (3) by appropriations of surplus for that pur- pose, or (4) by charges to Profit and Loss upon reacquirement of the stock. Entries in these accounts representing premiums realized shall be carried therein until offset (1) by discounts suffered on sales of the same class of stock, or (2) by credits to Profit and Loss upon reacquirement of the stock. In case the accounting company is permitted and elects to distribute all or any part of the net premium on its capital stock to its stockholders, the amount thus distributed shall be charged to the premium account. For the purpose of this classification the premium realized at the sale of capital stock shall not be considered a profit and loss item, except upon reacquirement of the stock sold. In no case shall discount on capital stock be charged to or included in any account as a part of the cost of acquiring any property, tangible or intangible, or as a part of the cost of operation. When stock which has been issued or assumed by the accounting company is reacquired, the difference between the price paid and the par value of the stock shall be credited to profit and loss account No. 306, "Miscellaneous credits," or charged to account No. 317, "Miscellaneous debits," as may be appropriate. Con- currently the premium or discount account for the particular issue of stock reacquired shall be adjusted through Profit and Loss to the extent of the premium or discount applicable to the shares reacquired. In case the premium or discount realized at the prior sale of the stock reacquired has been included in an asset account other than the premium and discount account, such asset account shall be concurrently adjusted through Profit and Loss 75 76 GENERAL BALANCE SHEET. to the extent of the premium or discount previously included therein with respect to the shares reacquired. , ,, 3. Discount, Expense, and Premium on Funded Debt.— Ledger accounts shall be provided to cover the discounts, expense, and premiums at the sale of each class of funded debt (including receiver's certificates) issued or assumed by the company. The total of the net debit balances remaining in these several accounts shall be included in account No. 418, "Discount on funded debt," and the total of the net credit balances in account No. 440, "Premium on funded debt." By the term discount is meant the excess of the par value of funded debt securities issued or assumed, and the accrued interest thereon, over the actual cash value of the consideration received for such securities. By the term premium is meant the excess of the actual cash value of the consideration received for funded debt securities issued or assumed over the par value of such securities and the accrued interest thereon. By the term expense is meant all expense in connection with the issue and initial sale of evidences of debt, such as fees for drafting mortgages and trust deeds; fees and taxes for issuing or recording mortgages and trust deeds; cost of engraving and priating bonds, certificates of indebtedness, and other commercial paper having a life of more than one year; fees paid trustees acting under mortgages and trust deeds; fee; paid for legal services to trustees relative to mortgage securities; fees and com- missions paid underwriters and brokers for marketing such evidences of debt; and other like expense. Each month there shall be charged to income account "Amortization of discount on funded debt," a proportion (based upon the ratio of such fiscal period to the remaining hfe of the respective securities) of each of the debit balances in these accounts, and correspondingly there shall be credited to income account "Release of premiums on funded debt," a similar proportion of each of the credit balances in these accounts. Carriers are allowed the option of extinguishing at any time, through charges to Profit and Loss, all or any portion of the debit balances remaining in any of these accounts and of deferring the extinguishment of credit balances until the maturity of the obligations represented. When any funded debt which has been actually issued to bona fide holders for value is reacquired by the accounting company, a proportion of the balance remain- ing in the accounts covering discount, expense, and premium on funded debt of the class of security reacquired shall be credited or charged, as may be appropriate, to Profit and Loss. Such proportion shall be based upon the ratio of the par value of the security reacquired to the par value of all the securities of the same class actually outstanding immediately before such reacquirement. In case, however, the premium or discount realized at the prior sale of the securi- ties reacquired has been included (in excess of the proportion authorized in the text of road and equipment account No. 547, " Interest during construction,") in an asset account other than the premium and discount account, such asset account shall be concurrently adjusted through Profit and Loss to the extent of the premium or dis- count previously included therein with respect to the securities reacquired. Except as provided in account No. 547, "Interest during construction," no dis- count on fimded debt shall be charged to or included in any account as a part of the cost of acquiring any property, tangible or intangible, or as a part of the cost of operation. 4. Contingent Assets and Liabilities. — Contingent assets and liabilities shall not be included in the body of the balance-sheet statement, but shall be shown in detail in a supplementary statement accompanying the balance-sheet statement. Contingent assets represent possible sources of value contingent upon the fulfillment of conditions regarded as uncertain. Contingent liabilities include items which may under certain conditions, become obligations of the company, but are neither direct nor assumed obligations at tha dale of the balance slieet. TEXT PERTAINING TO GENERAL BALANCE SHEET ACCOUNTS. DEBITS. 401. ROAD AND EQUIPMENT. This account shall include the balances representing the cost or book value of the carrier's investment in property devoted to transportation operations, in operations incident thereto, and in auxiliary operations, as such investment was shown on the books on December 31, 1908, and the cost of such property con- structed or acquired since that date, less deductions for property abandoned, sold, or otherwise retired. Note.— This account shall not include any items representing titles to securities. 402. SINKING FUNDS. This account shall include the amount of cash, the ledger value of live securities of other companies, and other assets which are held by trustees of sinking and other funds for the purpose of redeeming outstanding obligations; also amounts deposited with such trustees on account of mortgaged property sold, the proceeds of which are to be held for the redemption of the securities, and the par value of live securities issued or assumed by the accounting company and held in such funds. A separate account shall be kept for each fund. Note. — In stating the balance sheet in the annual reports to the Commission the total amount of the funds and the par value of securities issued or assumed by the accounting company and held in the funds shall be shown in the short columns, and the net amount of the funds (total amount less securities issued or assumed) shall be shown in the long column. 403. i^EPOSITS IN LIEU OP MORTGAGED PROPERTY SOLD. This account shall include amounts realized from the sale of mortgaged property which are held by trustees until such property is replaced. Note. — In stating the balance sheet in the annual reports to the Commission the total amount of the funds and the par value of securities issued or assumed by the accounting company and held In the funds shall be shown in the short columns, and the net amount of the funds (total amount less securities issued or assumed) shall be shown in the long column. 404. MISCELLANEOUS PHYSICAL PROPERTY. This account shall include the accounting company's investments in physical property other than investments properly classable in account No. 401, "Road and equipment." It shall include such items as investments in manufacturing, gas and water plants, mineral and timber lands, buildings not used in trans- portation or auxiliary operations but held for rent, rails and other materials leased to others, and other property not a part of the accounting company's plant for the maintenance and operation of its transportation and auxiliary operations property. Note.— The income derived from or the loss sustained in connection with the maintenance and operation of miscellaneous physical property shaU be included in income account No. 205, "Net income from misceUaneous physical property," or No. 219, "Net loss on miscellaneous physical property," as may be appropriate. 77 78 GENERAL BALANCE SHEET. 405. INVESTMENTS IN AFFILIATED COMPANIES. This account shall include the ledger value of the accounting company's investment advances to affiliated companies, also of its investment in securities issued or assumed by such companies, such securities not being held in special deposits or in special funds. This account shall be subdivided as follows: (a) Stocks. (6) Bonds. (c) Notes, including herein not only notes that run longer than one year, but also notes payable on demand or within one year from the date of issue when it is intended by the accounting company that the notes shall not be enforced as current assets; also all notes held as investments. (d) Advances. The accounting company's records shall be kept in such manner that the ledger value of securities pledged as collateral security for any of the accounting company's funded debt or short-term loans and the ledger value of securities unpledged shall be shown separately in the annual report to the Commission. Note A.— Accounts with affiliated companies which are subject to current settlement, such as traffic and car-service balances, charges for materials and supplies currently furnished, charges for repairs to equipment, etc., shall be classed as current assets or current liabilities, as may be appropriate. Note B. — The term affiliated companie.^ includes: 1. Controlled companies, including companies solely controlled by the accounting company, and also companies jointly controlled by the accounting company and others under a joint arrangement. 2. Controlling companies, including both companies solely controlling the accounting company, and companies which jointly control the accounting company under a joint arrangement. 3. Companies controlled by controlled companies. 4. Companies controlled by controlling companies. By control is meant the ability to det«rmine the action of a corporation. Sole control is that which rests in one corporation. Joint control is that which rests in two or more corporations and which is held under a joint arrangement. Note C— The value of securities borrowed by the accounting company and pledged shall not be included in this account. Note D.— -The value of securities pledged for purposes other than that of security for funded debt or short-term loans shall be included in account No. 402, " Sinking funds," No. 408, " Special deposits," or No. 414, "Insurance and other funds," as may be appropriate. 406. OTHER INVESTMENTS. This account shall include the ledger value of the accounting company's investment advances to nonaflBliated companies and to individuals and of its investment in securities issued or assumed by such companies, such securities not being held in special deposits or in special funds; also miscellaneous investments ■ not provided for elsewhere. This account shall be subdivided as follows: (a) Stocks. (6) Bonds. (c) Notes, including herein not only notes that run longer than one year, but also notes payable on demand or within one year from date of issue when it is intended by the accounting company that the notes shall not be en- forced as current assets, and all notes held as investments. {d) Advances. (e) Miscellaneous. The accounting company's records shall be kept in such manner that the ledger value of securities pledged as collateral security for any of the accountinciijr ui Note C. — The term affiliated companies includes: 1. Controlled companies, including companies solely controlled by the accounting comnaT,v ^„ri also companies jointly controlled by theaccounting company and others under a oint arrangemrat! GENERAL BALANCE SHEET. 85 2. Controlling companies, Including both companies solely controlling th.e accounting company, and companies whicb. jointly control tbe accounting company under a joint arrangement. 3. Companies controlled by controlled companies. 4. Companies controlled by conLroUiog companies. By control is meant the ability to determine the action of a corporation. Sole control is that which rests in one corporation. Joini control is that which rests in two or more corporations and which is held under a joint arrangement. 430. LOANS AND NOTES PAYABLE. This account shall include the balances representing obligations outstanding in the form of loans and notes payable or other similar evidences of indebtedness payable on demand or within a time not exceeding one year from the date of issue. Note. — Secured notes and time loans payable more than one year from date of issue shall be included in account No. 427, " Funded debt unmatured." 431. AUDITED ACCOUNTS AND WAGES PAYABLE. This account shall include the amoimt of audited vouchers or accounts and audited pay rolls unpaid on the date of the balance sheet ; also balances representing unclaimed wages and outstanding pay and time or discharge checks issued in payment of wages and all other unpaid vouchered items. 432. MISCELLANEOUS ACCOUNTS PAYABLE. This account shall include the net amount owed to other companies, in favor of each of which there is a net credit balance in the total of the accounts repre- senting interline freight, passenger, and baggage revenues, and charges for equip- ment interchanged on a per diem or mileage basis; also unpaid and outstanding drafts drawn by station agents, and other items of the nature of demand liabilities, not covered by accounts Nos. 430, 431, 433, and 434. Note. — The amount to be reported under this account is not the net balance between this account and account No. 410, "Miscellaneous accounts receivable." 433. MATURED INTEREST, DIVIDENDS, AND RENTS UNPAID. This account shall include the amount of matiu-ed and unpaid interest on loans and funded debt of the accounting company, on debt of other companies assumed by the accounting company, and on receiver's certificates; the amount of dividends payable on capital stock, but unpaid, uncalled for, or unclaimed at the date of the balance sheet ; unpaid dividends on the stock and unpaid interest on the funded debt of other companies when such are payable by the account- ing company aa all or a portion of the rent due under terms of leases or otherwise; and all other rents due and payable for property held under leases. Items above indicated which mature on the first day following that for which the balance sheet is made shall be included in this account. 434. MATURED FUNDED DEBT UNPAID. This account shall include the amount of funded debt matured and unpaid without specific agreement for extension sa to time of payment, including unpre- sented bonds drawn for redemption through the operation of sinking and redemp- tion fund ag:reements. 435. ACCRUED INTEREST, DIVIDENDS, AND RENTS PAYABLE. This account shall include the amount of interest on loans, funded debt, and receiver's certificates issued or assumed, dividends declared on capital stock, and rents under leases, accrued to the date for which the balance sheet is made but not payable until after the first day following that date. There shall be included also as rents accrued the amount of accrued dividends on the stock and accrued interest on the funded debt of other companies when such dividends and interest are payable by the accounting company aa all or a portion of the rent under leases from those companies. 86 GBN-EBAL BALANCE SHEET. 436. OTHER CURRENT LIABILITIES. This account shall include items of current liabilities not covered by accounts Nos. 430 to 435, inclusive. 437. LIABILITY FOR PROVIDENT FUNDS. This account shall include the ledger balances representing the liability of the accounting carrier for the amount of assets (whether contributed by the carrier, by the employees, or by others) in the possession of the carrier or of trustees or managers acting for it in the administration of employees' pension, savings, relief, hospital, and other association funds. 438. OTHER DEFERRED LIABILITIES. This account shall include items of deferred liabilities not covered by account No. 437, such as retained percentages due contract&rs, to be paid on completion of contracts; amounts deposited with the accounting company to cover the cost of employees' outfits; deposits made by customers and others under contract when such deposits are returnable; and other similar items. 439. TAX LIABILITY. This account shall include the amount of all taxes accrued to the date of the balance sheet and unpaid. When the accounting company leases property and under the terms of the lease agrees to assume and make direct payment of the taxes that may be levied upon or assessed against such property, the taxes accrued on such property shall be included in this account. If the taxes paid are in excess of the taxes accrued, the amount of the excess shall be shown in red. 440. PREMIUM ON FUNDED DEBT. This account shall include the total of the net credit balances in the discount, expense, and premium accounts for the several classes of funded debt. (See general instructions, section 3.) 441. INSURANCE AND CASUALTY RESERVES. This account shall include the net credit balance in the accounts to which are credited specific appropriations of surplus and such insurance premiums as are concurrently charged to Operating Expenses to cover self-carried risks on fire, fidelity, boiler, casualty, burglar, and other insiurance, and to which are charged losses sustained on items protected by such insurance. 442. OPERATING RESERVES. This account shall include the balances representing reserves created by charges to Operatii^ Revenues or to Operating Expenses to provide for over- charge, personal injury, loss and damage, and other claims, for equalization, and for similar purposes, such charges being made currently for the purpose of equal- izing charges to operating accounts for the current accounting year. (See general instructions for operating expenses, section 5.) N0TE.-Tlie credit balances In reserve accounts representing appropriations of surplus for sinking lunda, etc., shaU not be mcluded in this account. (See accounts Nos. 449 and 450.) Reserves for depreciation of railway property shall be included in account No. 443, "Accrued depreciation— Eoad and equipment," and No. 445, "Accrued depreclation-MisceUaneous physical propertv " and reserves for amortization of franchises in account No. 444, "Reserve for amortization of franchises." 443 ACCRUED DEPRECIATION— ROAD AND EQUIPMENT. To this account shall be credited amounts charged to operating expense or other accounts to cover the depreciation on property and equipment the cost of which is included in account No. 401, " Road and equipment." GENERAL BALANCE SHEET. 87 To this account shall be charged only such amounts as have been previously credited hereto with respect to any property or equipment destroyed, sold, or otherwise retired from service. 444. RESERVE FOR AMORTIZATION OF FRANCHISES. To this account shall be credited amounts charged to Operating Expenses or surplus in order to provide for the amortization or extinguishment of limited franchises. Note. — See Note B of account No. 545, " Franchises." 445. ACCRUED DEPRECIATION— MISCELLANEOUS PHYSICAL PROP- ERTY. To this account shall be credited amounts charged to Income to cover the depreciation of property the cost of which is included in account No. 404, "Mis- cellaneous physical property." To this account shall be charged only such amounts as have been previously credited hereto with respect to any such property destroyed, sold, or otherwise retired from service. 446. OTHER UNADJUSTED CREDITS. This account shall include the amount of credit balances in suspense accounts that can not be entirely cleared and disposed of until additional information is received, such as amounts realized from the sale of damaged, unclaimed, and over freight and held pending claim; amounts in suspense for prepaid ticket orders, unredeemed or unused tickets, and mileage coupons; and other similar items. 447. ADDITIONS TO PROPERTY THROUGH .SURPLUS. This account shall include such amounts of surplus as have been definitely appropriated or set aside, and expended siace December 31, 1908, in the con- struction or acquisition of property the cost of which is included in property investment accounts other than those for securities, including amounts expended in the retirement of trust obligations for the purchase of eqiiipment; also the amount of donations in aid of construction made by individuals and companies when not subject to distribution as dividends. Investments in road and equip- ment and in miscellaneous physical property shall be shown separately in the accounting company's records. This account may also include amounts definitely appropriated or set aside, and expended prior to December 31, 1908. If such amounts are iacluded, the account shall be divided into (a) Expended to December 31, 1908, and (6) Expended since December 31, 1908. Note. — Temporary appropriations for ttie acquisition of property the cost of which is intended later to be met through an issue of securities shall not be included in this account. 448. FUNDED DEBT RETIRED THROUGH SURPLUS. This account shall include the total amount of appropriated surplus ex- pended in the discharge of the principal (less the discount, if any, suffered at the time of sale) of any funded debt, except trust obligations for the purchase of equipment, issued or assumed by the accountiag company and retired through slaking or other funds provided from surplus. This account may include also amounts definitely appropriated or set aside and expended prior to December 31, 1908. If such amounts are included, the account shall be divided into (a) Expended to December 31, 1908, and (6) Expended since December 31, 1908. Note A.— Temporary appropriations for the payment of obligations which are intended to be replaced by new issues shall not be included in this account. Note B. Amounts of appropriated surplus expended in retirement of trust obligations issued for the purchase of equipment shall be iacluded in account No. 447, "Additions to property through surplus." 88 GENEEAL BALANCE feHEET. 449. SINKING FUND RESERVES. ThiB account shall include the unexpended balances in accounts to which are credited definite appropriations of surplus, whether held in general funds or specifically set aside in the hands of trustees for sinking and redemption funds. It shall also include income accretions to such funds retained therein. 450. MISCELLANEOUS FUND RESERVES. This account shall include the net balances in accounts to which are credited definite appropriations of surplus, whether held in general funds or specifically set aside in the hands of trustees and not provided for elsewhere. It shall also include income accretions to such funds retained therein. 451. PROFIT AND LOSS— BALANCE. Thifl account shall include the balance at the close of the fiscal period as shown in the Profit and Loss Account. ROAD AND EQUIPMENT ACCOUNTS. GENERAL INSTRUCTIONS. Page. 1. Application of this classification 91 2. Additions and betterments defined 91 3. Basis of charges 91 4. Property retired and replaced 92 5. Property retired and not replaced 92 6. Adjustments for converted property 92 7. Land sold or reclassed 93 8. Equipment retired 93 9. Equipment costs paid in installments 93 10. Salvage from equipment, tools, etc 93 11. Incidental services of employees 93 GENERAL ACCOUNTS. I. Wat and structures 95 II. Equipment 101 III. Power 103 IV. General and miscellaneous 105 PRIMARY ACCOUNTS. I. Wat and structures — 501. Engineering and superintendence 95 502. Right of way 95 503. Other land used in electric railway operations 95 504. Grading 96 505. Ballast 96 506. Ties 96 507. Rails, rail fastenings, and joints 96 508. Special work 96 509. Underground construction 97 510. Track and roadway labor 97 511. Paving 97 512. Roadway machinery and tools 97 513. Tunnels and subways 97 514. Elevated structures and foundations 98 515. Bridges, trestles, and culverts 98 516. Crossings, fences, and signs 98 517. Signals and interlocking apparatus 99 518. Telephone and telegraph lines 99 519. Poles and fixtures 99 520. Underground conduits 99 89 90 EOAD AND EQUIPMENT. I. Wat and structuees— Continued. Page. 521. Distribution system 99 522. General office buildings 100 523. Shops and carhouses 100 524. Stations, miscellaneous buildings, and structures 100 525. Wharves and docks 100 526. Park and resort property 100 527. Cost of road purchased 100 528. Reconstruction of road purchased 101 529. Other expenditures — ^Way and structures 101 II. Equipment — 630. Passenger and combination cars 102 581. Freight, express, and mail cars 102 532. Service equipment 102 533. Electric equipment of caia 102 534. Locomotives 102 535. Floating equipment 102 536. Shop equipment 103 537. Furniture 103 538. Miscellaneous equipment 103 III. Power — 539. Power plant buildings 103 540. Substation buildings 103 541. Dams, canals, and pipe lines 104 542. Power plant equipment 104 543. Substation equipment 104 544. Transmission system 104 IV. General and miscellaneous— 545. Franchises 105 546. Law expenditures 105 547. Interest during construction 105 548. Injuries and damages 106 549. Taxes j06 550. Miscellaneous 106 GENERAL INSTRUCTIONS. 1. Application of this Classification. — The accounts prescribed in this classifi- cation contain the rules in accordance with which shall be classified the investment of electric railway companies in property used by them in transportation operations, in operations incident thereto, or in auxiliary operations. These accounts shall include all expenditures for original road and equipment and for additions and betterments thereto, regardless of the way in which the funds for the construction or acquisition have been provided. Such expenditures shall not be charged to Operating Expenses, Income, Profit and Loss, or to special funds in such manner as to exclude from the property accounts any expenditure for road and equipment or for additions and betterments thereto. These accounts shall also include the necessary credits to represent the original cost of property or equipment abandoned, destroyed, sold, or otherwise retired from service. Wherever the term original cost is referred to in this classification and such cost can not be ascertained, an estimate of the original cost shall be used. If the total cost of additions and betterments to any class of equipment or any class of structures, under a general plan, considered as a whole, is less than $200, the option may be exercised of charging the amount expended to the appropriate account in Operating Expenses. This is not to be construed as authorizing the parceling of expenditures in order to bring them within this limit. 2. Additions and Betterments Defined.^ — Additions are structures, facilities, equipment, and other properties added to those in service at the beginning of opera- tions and not taking the place of any property for like purpose previously held by the accounting company. Betterments are physical changes in roadway, structures, facilities, or equipment, the object of which is to make the properties affected more useful or of greater capacity than they were at the time of their installation or acquisition. These accounts shall include only such portion of the cost of betterments as will, when added to the origi- nal cost of the property bettered, give the value of the property in its bettered condi- tion. The remainder of the cost of the change shall be classed as a repair and charged to the appropriate operating expense accounts. When it is necessary substantially to reconstruct or to replace a major portion of any unit of property or any important section of a continuous structure, the cost of the property removed or replaced shall be credited to the appropriate account in this classification and the new prop- erty shall be charged thereto. 3. Basis op Charges.— The charges to the accounts of this classification on account of expenditures for the acquisition of property and for improvements shall be based upon the actual cost of the property and the improvements. When the consideration given for the purchase of property or for the improvement of property chargeable to the accounts of this classification is anything other than money, the money value of the consideration at the time of the transaction shall be charged to these accounts and the actual consideration shall be described in the record with sufladent par- ticularity to identify it. g^ 92 EOAD AND EQXnPMENT. The charges for material included in the accounts of this classification shall be upon the basis of the net cost thereof, including transportation charges paid by the accounting carrier. The estimated cost of transporting material, when used for construction, addition, and betterment purposes, in revenue cars over the account- ing carrier's own line may be included in the cost of material. If such charges are made, the amount thereof shall be credited to operating expense general account "Transportation for investment — Cr." If materials and supplies are passed through storehouses, their cost entered in these accounts may include a suitable proportion of store expenses. The cost of tools purchased for exclusive use in connection with construction work shall be included in the accounts to which the cost of the work is charged. Upon completion of the work the amount realized from the sale of such tools or their ap- praised value, if retained upon completion of the work for which purchased, shall be credited to the accounts originally charged with their cost. 4. Pkopehtt Retired and Eeplacbd. — When property other than land, the cost of which has been charged to the accounts of this classification, is abandoned, demol- ished, or otherwise retired from service for the purpose of or by reason of its replacement with property for like purpose, the appropriate accounts of this classification shall be credited with the amounts at which such property stands charged therein at the time of such retirement. Concurrently, balance-sheet account No. 443, "Accrued deprecia- tion — Road and equipment," shall be charged with the amount carried therein, if any, with respect to the property retired; proper account shall be taken of salvage and insurance, and the remainder, together with expenses incident to the abandonment, shall be charged to the appropriate operating expense account. If, however, the property retired and replaced with property of like purpose is of minor importance, and is replaced without betterment, the cost of the replacement shall be charged to operating expense accounts and no adjustment made in the road and equipment accounts. The provisions of this section are applicable in accounting (at the time of retire- ment) for the cost of property abandoned, even though the new property has been actually installed previously to the date of the demolishment of the old property. 5. Propehty Retired and Not Replaced. — When property other than land and equipment (see sections 7 and 8), the cost of which has been charged to the accounts of this classification, is abandoned, demolished, or otherwise retired from service, and not replaced, the appropriate accounts of this classification shall be credited with the amounts at which such property stands charged therein at the time of such destruc- tion or retirement. Concurrently, balance-sheet account No. 443, " Accrued depre- ciation — Road and equipment," shall be charged with the amount carried therein, if any, with respect to such property destroyed or otherwise retired; proper account shall be taken of salvage and insurance; and the remainder, together with expenses incident to the abandonment, shall be charged to Profit and Loss Account. 6. Adjustments for Converted Property. — When a building, structure ojunit of equipment is so converted as to require that the amount of investment in such property be transferred from one account in this classification to another, the account in which the property was originally carried shall be credited with the amount at which such property stands charged therein at the time of its conversion. This amount, less depreciation, salvage recovered in the conversion, and cost of any part abandoned, and increased by the cost of improvements, shall be charged to the account in this classification appropriate for the cost of the property in its converted form. The charge for the converted property in no case shall exceed the coat (at current market prices of labor and material) of new property of equal capacity and equal expectation of life in service, less a suitable allowance on account of the second hand portions remaining therein. EOAD AND EQUIPMENT. 93 7. Land Sold or Rbclassed.— If any land the cost of which has been included in the accounts of this classification is sold, the appropriate account shall be credited with the amount at which such property stands charged therein at the time of the disposal, and the difference between the amount thus credited and the amount received from the sale or disposal of the property shall be included in Profit and Loss. When the use of land in transportation service or in operations incident thereto is discontinued and the land is retained in possession by the carrier, the appropriate account in this classification shall be credited with the amount at which such land stands changed therein and concurrently this amount shall be charged to balance- sheet account No. 404, "Miscellaneous physical property." 8. Equipment Retired. — The instructions for accounting for equipment retired are contained under the general account Equipment (p. 102). 9. Equipment Costs Paid in Installments. — When any equipment is acquired under a so-called trust agreement or any agreement which provides that the cost shall be paid in installments, the cost (its cash value at time of purchase) shall be charged to the accounts in this classification at the time of its acquisition in the same manner as the cost of equipment purchased outright. The discoxint or premium, it any, on securities issued in payment or in part payment for such equipment shall be debited or credited to the proper discount or premium accounts in accordance with general balance-sheet instructions, section 3. 10. Salvage from Equipment, Tools, etc. — When the cost of any work equip- ment, machinery, tools, or material and supplies obtained for use in construction work has been charged to accounts in this classification and the entire value thereof has not been consumed in the work, the residual value of such work equipment, ma- chinery, tools, or material and supplies shall be credited upon the completion of the work to the accounts to which originally charged, and concurrently charged to the material and supply account or other appropriate account. 11. Incidental Services op Employees. — ^No charge shall be made against road and equipment accounts for the salaries of officers and employees who per- form incidental services in connection with construction or addition and betterment work, although traveling and incidental expenses incurred by officers and employees on account of such work may be included in the account to which the cost of the work is chargeable. When officers or employees give all or a substantial proportion of their time to construction or to addition or betterment work the whole or an equitable 'proportion of their salaries and their traveling and incidental expenses in connection with such work shall be included in the cost of the work. TEXT PERTAINING TO ROAD AND EQUIPMENT ACCOUNTS. I. WAY AND STETJCTTJRES. 501. ENGINEERING AND SUPERINTENDENCE. This account shall include expenditures for services and expenses of engineers, draftsmen, and superintendents employed on preliminary and construction work, or in making additions or betterments to the accounting carrier's road; also expenses incident to engineering and superintendence not assignable to other accounts. Note A. — When employees designated above are engaged in work not eliargeable to construction, ' their pay and expenses shall be charged to the specific work on which engaged. When any of the expenses above designated can be charged directly to the account for which incurred, they shall be so charged. Note B. — Expenditures for tentative or preliminary surveys and tests shall be carried in a sus- pense account until it is determined whether or not to continue the work. If the project is continued, such expenditures sliall then be transferred to this account, and if abandoned, to operating expense, income, or profit and loss accounts, as may be appropriate. 502. RIGHT OF WAY. This account shall include the cost of land acquired for roadway; expenses of appraisals, or juries, commissioners, or arbitrators in condemnation cases; cost of removal of buildings (if upon right of way, and not included in property pur- chased); commissions paid outside parties for purchase of properties for these purposes; cost of plats, abstracts, notarial fees, recording deeds, etc.; payments for abutting damages and legal services in suits connected therewith ; assessments levied by public authorities or amounts payable for the construction or the improvement of roads, streets, sidewalks, curbs, gutters, sewers, ditches, etc. (except paving). To this account shall also be charged the cost of moving other companies' poles for proper clearance. To this account shall be credited proceeds from the sale of timber or other property purchased with right of way. The estimated value of property not required in connection with the operation of the road after completion thereof, but acquired and charged to this account in connection with land needed for right of way, shall, upon completion of the road, be credited to this account and charged to account No. 503, "Other land used in electric railway operations," or account No. 404, "Miscellaneous physical property," as may be appropriate. If such property is sold upon or prior to the completion of the road, the proceeds of sale thereof shall be credited to this account. Note.— The $200 minimum does not apply to items chargeable to this account. (See general instructions, section 1.) 503. OTHER LAND USED IN ELECTRIC RAILWAY OPERATIONS. This account shall include the cost of land acquired for use directly in con- nection with the operation of the road, but not acquired for roadway, including all expenses incurred in connection with such acquisition. Note A.-The J200 mmimum does not apply to items chargeable to this account. (See general instructions, section 1.) , ^^^ , ^ ^ a t n,i„ Note B.-Proceeds from sale of timber or of improvements purchased with land charged to this account shall be credited hereto. nc 96 EOAD AND EQUIPMENT. 604. GRADING. This account shall include the cost of clearing and grading roadway, whether by excavations or embankments; ditching roadway and making ditches for water- ways; also cost of retaining walls and other masonry or riprap for the protec- tion of embankments, cuts, and slopes. This account shall include such items as the cost of steam shovels and tools used in grading, less credit for inventory or selling value upon completion of grading. When a bridge or trestle or a portion thereof is filled, the cost of filling and the estimated cost of temporary trestling required for the purpose of filling shall be charged to this account. 505. BALLAST. This account shall include the cost of ballast, whether of broken stone, slag, gravel, concrete, or other material; cost of transportation and handling (except final distribution); also the cost of ballast applied in excess of that required lo restore the ballast to its original height and width; and the excess cost of im- proved ballast used in renewals over the original cost of the ballast removed. Note A.— If ballast produced is chargeable partly to construction and partly to maintenance, a clearing account may be opened in order to determine the unit of cost which is to be used in arriv- ing at the amounts chargeable to construction and maintenance. Note B.— The cost of labor expended in spreading and putting ballast under track shall be charged to account No. 610, "Track and roadway labor." 506. TIES. This account shall include the cost of cross, switch, bridge, and other track ties used in the construction of tracks, and the cost of additional ties subsequently laid in such tracks; cost of transportation and handling (except final distribu- tion); the pay and expenses of employees engaged in obtaining, purchasing, treat- ing, framing, and inspecting ties for construction purposes; also the excess cost of improved ties over the original cost of ties removed and replaced. Note. — The cost of labor for unloading, distributing, and placing ties in tracks shall be charged to account No. 510, " Track and roadway labor." 507. RAILS, RAIL FASTENINGS, AND JOINTS. This account shall include the cost of rails (including guard rails), rail fastenings, and joints used in construction of tracks; the cost of transportation, inspection, and handling (except final distribution); and the excess cost of heavier or improved type or quality of rails, rail fastenings, and joints over the original cost of rails, rail fastenings, and joints removed and replaced. Note A.— Guard rails used in connection with special work shall be charged t/t account No. 608, "Special work." Note B.— The cost of labor for unloading, distributing, and placing rails, rail fastenings, and joints, in track shall be charged to account No. 510, "Track and roadway labor." 508. SPECIAL WORK. This account shall include the cost of special work, including steam and street railroad crossings, crossovers, curves, frogs, run-offs, switches, switch mates, and turnouts; guard rails used in connection with special work; also the excess cost of heavier or improved type of special work over the original cost of such work removed and replaced. To this account shall also be charged the cost of transportation, inspection, and handling (except final distribution). The terms crossovers, curves, and turnouts cover only those portions of track which are made to order. Note A.— This account is not intended to cover the cost of ties, rails, rail fastenings, and joints These items shall be charged to acootmts provided for such expenditures. Plain curves shall be treated as rails. Note B. — The cost of labor for unloading, distributing, and placing special work in track shall he charged to account No. 510, " Track and roadway labor." KOAD AND EQUIPMENT. 97 509. UNDERGROUND CONSTRUCTION. This account is to be used only by railways operated by underground electric contact system, or by those operated by cable traction. This account shall include the cost of underground construction, including cost of excavating for underground construction, and cost of yokes, concrete work, manhole frames and covers, slot rails, drain pipes, pulleys, sheaves, and other fixtures and appurtenances peculiar to underground electric or cable construc- tion. To this account shall be charged also the cost of transportation, inspec- tion, and handling (except final distribution). Note A. — The cost of track: rails, track rail fastenings and joints, electric contact rails and insula- tors, and cables of cable railways, shall not be charged to this account. Note B.— The cost of labor unloading, distributing, and placing the materials described above shall be charged to account No. 510, ''Track and roadway labor." 510. TRACK AND ROADWAY LABOR. This account shall include the cost of labor expended in distributing, laying, and adjusting ties, rails, ballast, frogs,* switches, special work, and other track material and appurtenances used in the construction of tracks. The cost of lay- ing and surfacing tracks through tunnels and on bridges and trestles shall be included in this account. Note A.— The cost of distributing and adjusting ties, rails, ballast, frogs, switches, and other track material for replacements shall be charged to Operating Expenses. .-fOTE B.— The cost of transporting ballast and unloading at delivery point shall be charged to account No. 506, " Ballast." 511. PAVING. This account shall include the cost of labor and material (including macadam) for paving about tracks and special work, and for crosswalks incident to track construction; also the excess cost of improved paving over the original cost of paving removed and replaced. This account shall also include assessments levied by public authorities or amounts payable under franchise requirements for new or improved paving. The cost of replacing paving taken up on account of construction shall also be charged to this account. 512. ROADWAY MACHINERY AND TOOLS. This account shall include the cost of the initial outfit of roadway machinery and tools provided for the maintenance of roadway and structures at the time the road is opened for commercial traffic, the cost of additional roadway machinery and tools acquired subsequently, and also the excess cost of roadway machinery and tools over the original cost of such property abandoned or retired and replaced. Note A.— When an important addition and betterment project' or the construction ol a new line necessitates the piH'chase of roadway, machinery and tools to be used exclusively thereon, the cost shall be included in the accounts to which the cost of the work is charged. The amount realized from any subsequent sale, or the appraised value of the machinery and tools retained after the com- pletion of the work for which they were purchased, is to be credited to the accounts charged with the cost thereof. The appraised value of such machinery and tools shall be debited to this account and thereafter considered as the cost of such property. Note B. — The cost of hand and other small portable roadway machinery and tools, of which no specific record is kept, shall be charged, when they are acquired, to an appropriate material and ' supplies account, from which they shall be charged, as issued, to the appropriate road and equip- ment, operating expense, or other accounts. Note C. — The cost of machinery and tools for the equipment of shops shall be included in account No. 536, "Shop equipment," as provided therein. 513. TUNNELS AND SUBWAYS. This account shall include the cost of labor and material used in the construc- tion of tunnels and subways; the cost of apparatus for ventilating and lighting, and safety devices (except guard rails and signals) in tunnels and subways; also 42130°— 14 T 98 EOAD AND EQUIPMENT. the excess cost of enlarged tunnels and subways over the original cost of those replaced, and the excess cost of lining tunnels over the original cost of the lining removed and replaced. Note, — The cost of undergrade crossings shall be charged to account No. 516, " Crossings, fences, and signs." 514. ELEVATED STRUCTURES AND FOUNDATIONS. This account is intended to be used only by companies operating an elevated railway system. It shall include the cost of labor and material used in the con- struction of elevated structures and foundations; also the excess cost of elevated structures and foundations over the original cost of such property removed and replaced. Note A.— Ties and rails used on elevated structures shall be charged to accounts No. 506, "Ties," and No. 597, "Rails, rail fastenings, and joints." Note B. — The cost of station and other structures built on elevated lines shall not be included In this account, but in the accounts appropriate for such structures. 515. BRIDGES, TRESTLES, AND CULVERTS. This account shall include the cost of labor and material used in the construc- tion of bridges and trestles erected to carry tracks over streams, ravines, marshes, streets, or other railways, and culverts, both substructure and superstructure. It shall include cost of abutments, piers, supports, draw and pier protection; wing dams and cribs for regulating the current of a stream; ice breakers for breaking up jams; machinery to operate drawbridges; guards, masonry ends, and wing walls for culverts; pipe culverts for drainage systems; cost of inspection and transportation of material; cost of tests; labor and material used in painting structures; also the excess cost of new bridges, trestles, culverts and appurte- nances or parts thereof over the original cost of such property removed and replaced. ' Note A.— The cost of structures necessary for carrying the carrier's tracks over other tracks, or over a stream, highway, or canal, shall be included in this account. The cost of structures neces- sary for carrying other tracks, canals, highways, etc., over the carrier's tracks shall be charged to account No. 516, "Crossings, fences, and signs." Note B.— Ties and rails used on bridges, trestles, and culverts shall be charged to accounts No. 506, "Ties," and No. 507, "Rails, rail fastenings, and joints." Note C— When a part or the entire structure of a bridge or trestle is converted, by filling, into an earth embankment, the ledger value of the structure, or of the portion thereof filled shall be credited to this account. In case the bridge or trestle is used in lieu of a temporary trestle for the purpose of filling, the estimated cost of such temporary trestle shall be charged to account No. 504, "Grading." The ledger value of the structure, or portion thereof, filled, less the value of the salvage and the estimated cost of trestle charged to account No. 504, shall be charged to Operating Expenses. 516. CROSSINGS, FENCES, AND SIGNS. This account shall include the cost of labor and material used in constructing street, road, and farm crossings at grade; overhead bridges and viaducts for use of others; roadways of . undergrade footways, wagon roads, or cattle crossings- crossing gates, cabins, and towers containing apparatus for operating gates: warning signals; planking at crossings, and drainage for undergrade crossings' payments and assessments for street repairs during construction period or for sewers at crossings; right-of-way fences, snow and sand fences, cattle guards wing fences, aprons, and hedges; mile, section, warning, and other roadway signs- and the excess cost of crossings, fences, cattle guards, and signs over the original cost of such property removed and replaced. Note.— The cost of structures carrying other tracks, canals, highways, etc., over a carrier's tracks shall be included in this account. A structure carrying the carrier's tracks over other tracks over a stream, highway, or canal, shall be considered a bridge, trestle, or culvert and its cost h H be included in account No. 515, "Bridges, trestles, and culverts." EOAD AND EQUIPMENT. 99 517. SIGNALS AND INTERLOCKING APPARATUS. This account shall include the cost of labor and material used in constructing signals and interlocking apparatus, including towers and other buildings incident thereto; also the. excess cost of enlarged or improved interlockers or other signal apparatus over the original cost of such apparatus removed and replaced. 518. TELEPHONE AND TELEGRAPH LINES. This account shall include the cost of labor and material used in constructing telephone and telegraph lines, including cost of conduits, poles, cables, wires, booths, and instruments; cost of all tools used for construction, and cost of transportation of men and material for this work; also the excess cost of en- larged or improved telephone and telegraph lines over the original cost of lines removed and replaced. Note. — If telephone or telegrapli wires are carried on poles and fixtures or in conduits primarily used for other purposes, the cost of such poles and fixtures or conduits shall be charged to accounts No. 519, "Poles and fi.xtures," No. .520, "Underground conduits," or No. 544, "Transmission system," as may be appropriate. 519. POLES AND FIXTURES. This account shall include the cost of labor and material used in connection with the construction of pole lines or structures, including poles, cross arms, insulating pins, brackets, and other pole fixtures; braces and other supports for holding the poles in position; structures for supporting the overhead electric construction; and first cost of numbering poles; also the excess cost of poles and fixtures over the original cost of such property removed and replaced. (See note under account No. 518, "Telephone and telegraph lines.") 520. UNDERGROUND CONDUITS. This account shall include the cost of labor and material used in constructing conduits for underground wires and cables, including manholes, sewer con- nections, sewer traps, and all fixtures; also the excess cost of new or improved conduits and parts over the original cost of such property removed and re- placed. (See note under account No. 518, " Telephone and telegraph lines.") 521. DISTRIBUTION SYSTEM. This account shall include the cost of labor and material used in constructing the distribution system, including overhead and underground feeders for trans- mitting low-tension power from power stations and substations, with insulators and connections; track bonding, including track bonds and cost of punching and drilling rails for same; overhead trolley lines, including cost of trolley, guard, span, strain, supplementary, and other wires, and all catenary construction used in connection with the overhead trolley system; cost of third rail, braces and sup- ports for same, insulating devices, materials used for covering and protecting same, and aU fixtures and appliances connected with third-rail conductors; cost of underground contact rails, and appliances used in underground contact system, including braces, supports, and insulating devices; also the excess cost of improved distribution lines and appliances over the original cost of such property removed and replaced. Note. — When the electric current generated or receiyed is changed by means of rotary converters, motor generator sets, or static transformers, that portion of the line or outside conductor system carrying current of other than the operating If ind or voltage shall be classed as transmission system. When the electric current is generated or received and used substantially unchanged in voltage and kind, the line or outside conductor system, including feeders, trolley wire, booster circuits, and sup- plementary return, if any, shall be classed wholly as distribution system. Tie lines between gener- ating stations and substations shall follow the same rule as other lines. 100 EOAD AND EQUIPMENT. 522. GENERAL OFFICE BUILDINGS. This account shall include the cost of buildings devoted to general office purposes and their permanent fixtures; architects' fees; and expense of grad- ing, improving, and fencing grounds; also the excess cost of_ general office build- ings over the original cost of such property removed and replaced. 523. SHOPS AND CARHOUSES. This account shall include the cost of labor and material used in erecting buildings to be used as shops, car sheds, carhoases, oil houses, sand houses, and storehouses, including foundations, ex' ept those special to particular machines and apparatus, pits, transfer tables, turntables, and built-in scales; heating and lighting apparatus; water, gas, and sewer pipes and connections; architects' fees; preparing grounds before and clearing grounds after construction; painting; trans- portation and incidental expenditures; also the excess cost of new or improved shops and carhouses or parts thereof over the original cost of such property re- moved and replaced. Note.— The coat of foundations special to particular machines or apparatus shall be included in the accounts to which the cost of such machines or apparatus is chargeable. 524. STATIONS, MISCELLANEOUS BUILDINGS, AND STRUCTURES. This account shall include the cost of labor and material used on stations, wait- ing rooms, and other buildings not provided for elsewhere in this classification, including excavation, foundations, and drainage; water, gas, and sewer pipes and connections; grading, improving, and fencing grounds; heating and lighting appa- ratus and fixtures, and all other material and fixtures used to complete the build- ings; cost of track scales and cattle chutes; also the excess cost of new or im- proved stations, waiting rooms, and miscellaneous buildings and structures over the original cost of such property removed and replaced. 525. WHARVES AND DOCKS. This account shall include the cost of wharves, docks, dry docks, slips, float bridges, and other landings for vessels, including necessary dredging and the cost of float-bridge or ferry-bridge machinery and other appurtenances on docks and wharves; piling, pile protection, cribs, cofferdams, walls, and other neces- sary devices and apparatus for the operation or protection of wharves and docks; also the excess cost of improved wharves, docks, slips, float bridges, inclines, and other landings installed for vessels over the original cost of such property abandoned or removed and replaced. Note A .—The cost of restoring the condition of wharves and of the land upon which they are situ- ated after betterment work shall be charged to Operating Expenses or assigned to auxiliary opera- tions expestses. Note B.— The cost of land on which additional wharves are built and cost of riparian or water rights for wharves and docks shall be charged to account No. 503, "Other land used in electrit railway operations." 526. PARK AND RESORT PROPERTY. This account shall include the cost of amusement parks or resorts; includiing the excess cost of improved park and resort property over the original cost ol such property retired or removed and replaced. Note.— The cost of land used or such purposes shall be charged to accoun- No. 603, 'Other and used in electric railway operations.'' 527. COST OF ROAD PURCHASED. This account shall include the cash cost of any road or portion thereof pur- chased. Where the contract of purchase includes not only road, but also equip- ment, securities, and other assets, the appraised value of such equipment ROAD AND EQUIPMENT. 101 securities, and other assets shall be deducted from the total cash cost, and the remainder of the cash cost shall be charged to this account. Where the consid- eration given for the property purchased is other than cash, such consideration shall be valued on a current cash basis. If the consideration includes the assumption of liabilities, such liabilities shall be included in the determination of the cost at their cash value at the time the contract is made. This account shall be used only as a clearing account in which temporarily to carry the cost of road purchased until such time as a plan for distributing such cost to the primary accounts appropriate for the property is approved by the Commission. Note A. — The appraised value of any equipment thus acquired shall be charged to the appro- priate equipment accounts. The value, at the time of purchase, of any securities or other assets acquired shall be included in the accounts appropriate for such assets. The par value of any liabilities assumed shall be included in the appropriate liability accounts, and the necessary adjust- ments between the cash value charged to the property accounts and the par value shall be made in the appropriate premium or discount account. Note B.— The carrier shall be prepared to furnish the Commission, upon demand, a full report of the contract of acquisition of each road, or portion thereof, purchased, and a statement showing in detail the consideration given therefor. It should procure, in connection with the acquisition of any such road and equipment, all existing records, memoranda, and accounts in possession or control of the grantor, relating to the construction and improvements of such road and equipment, and shall preserve such records, memoranda, and accounts until authorized by law to destroy or otherwise dispose of them. Where the records, memoranda, and accounts are so intimately in- volved with other records, memoranda, and accounts of the grantor as to make their transfer im- practicable or inadvisable, certified copies of them shall be procured and retained by the gr-antee. The verity of the copies should be certified by the custodian of the originals. 528. RECONSTRUCTION OF ROAD PURCHASED. When a road is purchased and the fixed improvements acquired are in such a physical condition that it is necessary substantially to rebuild the road in order to bring it up to the standard required by the carrier, the cost of such rebuilding shall be charged to this account. Note A. — A comprehensive statement of the estimated amount necessary to reconstruct a road in accordance with the above provision shall be made to the Commission as soon as the estimate is made. Note B.— When the work of reconstruction of road purchased is completed the cost thereof shall be credited to this account and charged to other primary accounts of this classification appropriate for the expenditures made. 529. OTHER EXPENDITURES— WAY AND STRUCTURES. This account shall include items which can not properly be included in any of the foregoing accounts as a part of the cost of any specific work, such as the cost of transportation of men, materials, supplies, and equipment over the ac- counting company's own line; rent and repairs of equipment used in original construction or additions and betterments; and analogous items. II. EQUIPMENT. To the appropriate accounts under this general account shall be charged the cost of all equipment not includible under general account Power, such as loco- motives; passenger, baggage, express, freight, mail, work, and nonrevenue cars; floating and other equipment; the necessary appurtenances and fixtures first to equip for service; the cost of inspection, setting up, and trying out; the cost of transportation over foreign lines: and cost of additional devices, appliances, and apparatus applied to equipment, such as electric headlights, power brakes, ves- tibules, heating and lighting apparatus, and the like; also the excess cost of improved appliances and parts over the original cost of such appliances and parts removed. The cost of removing the old appliances and applying the new appli- ances shall be charged to Operating Expenses. 102 EOAD AND EQUIPMENT To this account shall be credited the ledger value of equipment destroyed, sold, or otherwise permanently retired from service. The amount of this credit shall be concurrently charged as follows: Proper account shall be taken of any salvage; account No. 443, "Accrued depreciation — Road and equipment." shall be charged with the amount carried therein with respect to the equipment retired, the amount of depreciation prior to July 1, 1914, not previously written off shall be charged to Profit and Loss and the remainder shall be charged to operating expense account No. 41, "Equipment retired." 630. PASSENGER AND COMBINATION CARS. This account shall include the cost of passenger, baggage, sleeping, dining, par- lor, chair, and combination passenger-service cars from the operation of which revenue is derived; also the excess cost of improved fixtures and appliances over the original cost of such property retired or removed and replaced. The term car includes body and trucks, and all fixtures and appliances inside of or attached to the car body or trucks, except the electric motive equipment of the car. The term combination car includes all cars that are used in part for carryiag passengers. 531. FREIGHT, EXPRESS, AND MAIL CARS. This account shall include the cost of freight, express, and mail cars from the operation of which revenue is derived; also the excess cost of improved fixtures and appliances over the original cost of such property retired or removed and replaced. The term car includes body and trucks and all fixtures and appliances inside of or attached to the car body or trucks, except the electric motive equipment of the car. 532. SERVICE EQUIPMENT. This account shall include the cost of water cars, sprinkler cars, sand cars, salt cars, supply cars, and maintenance of way and line cars; snow plows, sweepers, scrapers, and miscellaneous snow-handling equipment; and pile drivers, rail grinders, cranes, welding and bonding apparatus, and similar equipment, where permanently mounted on cars; also the excess cost of improved fixtures and appliances over the original cost of such property retired or removed and replaced. 533. ELECTRIC EQUIPMENT OP CARS. This account shall include the cost of electric motive equipment and wiring of cars, whether revenue or work cars, including cost of labor, material, tools freight, hauling of material, and other expense incident to this work; also the excess cost of improved fixtures and appliances over the original cost of such property retired and replaced. By electric equipment of cars is meant the electric motive equipment and the wiring for such equipment. 534. LOCOMOTIVES. This account shall include the cost of locomotives, including appurte- nances, fixtures, and electric equipment necessary to fit them for service and cost of labor, material, tools, freight, hauling of material, and other expense incident thereto; also the excess cost of improved fixtures, appliances, or parts over the original cost of such property retired or removed and replaced.' To this account shall be charged the cost of steam or other locomotives and tenders, including all appurtenances and fixtures necessary to equip them for service. 535. FLOATING EQUIPMENT. This account shall include the cost of marine or floating equipment of all kinds, including appurtenances, furniture, and fixtures necessary to equip them EOAD AND EQUIPMENT. 103 for service; cost of inspection and transportation; also the excess cost of new or improved floating equipment or appurtenances over the original cost of such property removed and replaced 636. SHOP EQUIPMENT. This account shall include the cost of installing machinery and tools used in shops or carhouses, including specially provided foundations and settings. It includes the cost of stationary engines and boilers, motors, compressors, shafting, belting, cranes, forges, portable scales, conduits, and fixtures for conveying com- pressed air, and other machinery and tools necessary to first equip shops (except as provided for in account No. 538); also the excess cost of improved or enlarged machinery and tools over the original cost of such property retired and replaced. 537. FURNITURE. This account shall include the cost of movable furniture and fittings for general offices, shops, power plant and substation buildings, stations, waiting rooms, etc., such as desks, tables, chairs, carpets, cases, movable partitions, rail- ings, and shelves; tjrpewriters, addressing machines, adding machines, and other office devices; stoves, portable gas and electric fixtures, and other office fittings (except fixtures considered a part of the building). This account shall also include the excess cost of furniture and fittings over the original cost of such prop- erty removed and replaced. 538. MISCELLANEOUS EQUIPMENT. This account shall include the cost of equipment of general stables, including horses, harness, drays, wagons, automobiles, and other vehicles; equipment of shoeing shops, harness repair shops, vehicle repair shops, etc. ; also the excess cost of new or improved equipment over the original cost of such property retired or removed and replaced. III. POWER. 539. POWER PLANT BUILDINGS. This account shall include the cost of labor and material used in erecting buildings to be used as power-generating plants, including excavation; foundations, except those special to particular machines and apparatus; drainage, gas, and water pipes and connections; fixtures, when built into and constituting a part of the building; architects' fees; gra.ding, improving, and fencing grounds; coal trestles and pockets; and wells, artificial lakes, ponds, or pipe lines tg supply water for steam plant; also the excess cost of improved or enlarged power plant buildings over the original cost of such property removed and replaced. When a lighting business is conducted in connection with the operation of an electric railway the entire cost of power plant buildings shall be included in this account. Note. — The cost of foundations special to particular machines or apparatus shall be included In the accounts to which the cost of such machines or apparatus is chargeable. 540. SUBSTATION BUILDINGS. This account shall include the cost of buildings to be used as power sub- stations or storage battery buildings, including excavations; foundations, except those special to particular machines and apparatus; drainage, gas, and water pipes and connections; fixtures, when built into and constituting a part of the building; architects' fees; and expense of grading, improving, and fencing grounds; also the excess cost of improved or enlarged substation buildings over the original cost of such property removed and replaced. 104 EOAD AND EQUIPMENT. When a lighting business is conducted in connection with an electric railway, the entire cost of substation buildings shall be charged to this account. Note.— The cost of foundations special to particular machines or apparatus shall be included in the accounts to which the cost of such machines or apparatus is chargeable. 541. DAMS, CANALS, AND PIPE LINES. This account shall include the cost of dams, canals, aqueducts, pipe lines, and penstocks devoted to the utilization of water power and the deliveiy of the water into the inlet valve of the turbine or water wheel; also that of all wasteways. This includes all gates, valves, and other accessories of such dams; sluices, forebays, grids, walls, buildings, fences, etc., for the operation and pro- tection of such canals and pipe lines; trestles and other supporting structures; and viaducts, bridges, footbridges, etc., necessitated by such canals, aqueducts, and pipe lines; also the excess cost of improved or enlarged dams, canals, and pipe lines or parts thereof over the original cost of such property abandoned or removed and replaced. 542. POWER PLANT EQUIPMENT. This account shall include the cost of labor and material used in equipping plants for generating powerj including cost of engines, boilers, pumps, con- densers, and equipment for generating steam power; dynamos, generators, wiring and appliances, and other equipment for generating electric current; special foundations and settings; traveling cranes; switchboards and fixtures and appli- ances connected therewith; also the excess cost of improved or enlarged equip- ment and appurtenances over the original cost of such property removed and replaced. The cost of cables and of machinery for the propulsion of cables used in the operation of cable or incline railways shall be charged to this account. When a lighting business is conducted in connection with an electric railway, the cost of machinery and equipment necessary for the generation of power for lighting shall be included in this account. Note.— The cost of foundations other than those special to particular machines and other appa- ratus shall be included in the cost of the building, and not in this account. 543. SUBSTATION EQUIPMENT. This account shall include the cost of labor and material used in equipping power substations; including cost of boilers, storage batteries, transformers, rotary converters, specially provided foundations and settings, switchboards and fix- tures and appliances connected therewith, and equipment for portable substa- tions; also the excess cost of improved or enlarged equipment and appurtenances over the original cost of such property removed and replaced. Note.— The cost of foundations other than those special to particular machines and other appa- ratus shall be included in the cost of the building, and not in this account. 644. TRANSMISSION SYSTEM. This account shall include the cost of labor and material used in construct- ing transmission system, including cost of poles, fixtures, and conduits used primarily for carrying transmission lines; cables, wires, insulators, and insulating material; cost of cutting and trimming trees for transmission lines and cost of constructing roads or footways for patrolling such lines; also the excess cost of improved transmission lines and appliances installed over the original cost of Buch property removed and replaced. NOTE.-When the electric current generated or received is changed by means ol rotary converters motor generator set«, or static transformers, that portion of the line or outside conductor system' carrying current of other than the operating kind or voltage shaU be classed as transmission system When the electric current is generated or received and used substantiallv unchanged in volt- age and kind, the line or outside conductor system, including feeders, troUey wire boo'ster circuits and supplementary return, if any, shaU be classed wholly as distribution system. Tie lines be- tween generating stations and substations shall foUow the same rule as other lines. EOAD AND EQUIPMENT. 105 IV. GENERAL AND MISCELLANEOUS. The primary accounts in this general account are provided to include expen- ditures made by a carrier in connection with the construction or acquisition of new lines or additions and betterments to its physical property, but which can- not properly be included in any of the foregoing accounts as a part of the cost of any specific work. 545. FRANCHISES. This account shall include actual amounts paid to a State or to a political subdivision thereof in consideration of franchises running in perpetuity or for a specified term of more than one year and necessary to the conduct of the carrier's operations. Similar payments for perpetual or limited franchises covering addi- tional territory shall also be charged to this account. Note A. — Payments made periodically in ttie nature of taxes, percentages of revenues, etc., shall be included in income account No. 215, "Taxes assignable to railway operations." Note B. — Balance-sheet account No. 444, "Reserve for amortization of franchises," has been provided, to which may be credited monthly and charged to operating expense account No. 91, "Amortization of franchises," a monthly proportion of annual amounts which, written off proportionately over the life of limited franchises, will create a reserve sufflcient, at time of expiration of franchises, to offset the amount charged to this account for such franchises. Upon expiration of a franchise, account No. 444, "Reserve for amortization of franchises," shall be debited and this account shall be credited with the amount paid therefor. 546. LAW EXPENDITURES. This account shall include law expenditures incurred on account of con- struction, including pay and expenses of counsel, solicitors, and attorneys, their clerks and attendants, and the expenses of their offices; cost of printing briefs, legal forms, testimony, reports, etc.; payments to arbitrators upon disputed questions; payments of special fees, notarial fees, and witness' fees not else- where provided for; expenses connected with taking depositions, and court ' costs and expenses. Expenses in connection with the conduct of suits and not otherwise provided for shall be included in this account. Note A. — Expenditures above designated, when chargeable directly to the account for which incurred, shall not be charged to this account. Note B.— Law expenditures in connection with the organization of the company shall be charged to account No. 550, " Miscellaneous." 547. INTEREST DURING CONSTRUCTION. When any bonds, notes, or other evidences of indebtedness are sold or any interest-bearing debt is incurred for acquisition or construction of original road and equipment, extensions, additions, and betterments, the interest accruing on the part of the debt representing cost of property chargeable to road and equip- ment accounts (less interest, if any, allowed by depositaries on unexpended bal- ances) after such funds become available for use and before the receipt or the completion or coming into service of the property so acquired shall be charged to this account. When such securities are sold at a premium the proportion of such premium assignable to the time between the date of the actual issuance of the securities and the time when the property acquired or the improvement made becomes available for service shall be credited to this account. This account shall include also such proportion of the discount and expense on funded debt issued for construction or addition and betterment purposes as is equitably assignable to the period between the date of the actual issuance of securities and the time when the property acquired or the improvement made becomes available for the servicefor which it is intended. The proportion of dis- count and expense thus chargeable shall be determined by the ratio between the period prior to the completion or coming into service of the facilities or improvements acquired or constructed and the period of the entire life of the securities issued. 106 KOAD AND EQUIPMENT. This account shall also include reasonable charges for interest during the construction period on the carrier's own funds used temporarily during such period for construction purposes. Note. — If any securities which have been issued or assumed by the carrier are sold or ex- changed by or for the carrier for a consideration the actual money value oi which at the time of such sale or exchange is less than the value of the securities at par and the accrued interest thereon, if any, the difference between the money value of the consideration received and the par value of the securities plus the accrued interest shall be deemed discount, and in no case (except as pro- vided in the third paragraph of this account) shall discounts be included as part of the cost of any- thing charged to any account prescribed in this classification. 548. INJURIES AND DAMAGES. This account shall include all expenses incident to injuries to persons or damage to property caused directly in connection with construction and equip- ment of road. To it shall be charged during the construction period, the salaries and expenses of physicians and surgeons; medical and siirgical supplies; nui'sing and hospital attendance; artificial limbs; railway and carriage fares for con- veying injured persons and attendants; also the pay and expenses of claim adjusters and their clerks, witness fees, and pay and expenses of employees and others called in consultation in relation to the adjustment of claims coming under this head. The amount of final judgments and plaintiffs' court costs in connection with suits not otherwise provided for shall be included in this acount. Note.— When any of the expenses designated above can be charged directly to the account lor which incurred, they shall be so charged, and not to this account. 549. TAXES. This account shall include all taxes and assessments except special taxes for public improvements levied and accrued on property belonging to the company while under construction and before the road is opened for commercial opera- tion, including taxes on capital stock and proceeds thereof to be used for con- struction purposes only. Note A.— Special taxes assessed In connection with the construction oi street and other improve- ments, such as grading, sewers, curbs, gutters, paving, and sidewalks, shall be charged to the account to which was charged the property affected Note B.— Taxes levied on propeity after it is sufficiently advanced to be devoted to commer- cial operations shall be charge 1 to account No. 215, "Taxes assignable to railway operations." 550. MISCELLANEOUS. This account shall include all expenses of a special and incidental nature directly incurred in connection with the construction or acquisition of property classable as road and equipment, which can not properly be included in any other account in this classification. Following are some of the items which shall be included in this account: Fees paid to governments for incorporation; office and other expenses incident to organizing the corporation; cost of prepar- ing and distributing prospectuses; cost of soliciting subscriptions for stock; cash fees paid to promoters; the actual cash value, at the time of organization, of securities issued to promoters for their services in organizing the company; counsel fees in connection with organizatioo; coat of preparing and issuing stock certificates; salaries and expenses of executive and general officers and of gen- eral office clerks, or an equitable proportion thereof, when such officers and clerks give all, or a substantial proportion, of their time to construction work and accounts; stationery and printi ig; insurance; cost of operatinga part of the road during the construction period and before the regular operation of revenue cars; credits representing rpnts of buildings and other properties, and credits for the transportation of commercial freight and passengers, during the construction period; and analogous items. Note.— If the carrier so deshes, the above expenses may be kept separate by the use of sub- accounts. INDEX. Roman numerals refer to sections of the instructions: Arabic numerals to the several accounts. A-bandoned property; profit and loss debits, 315; undistributed charges, 419. (See also Retirement.) Accidents. (See Damages, Injuries expense.) Accounts (payable); unpaid and written on, 306; to affiliated companies, 429; for loans, 430; audited hut unpaid, 431; miscellaneous, 432. Accounts (receivable); collected alter being written otS, 306; for loans, 409; miscellaneous, 410. Additions and betterments; investment balance, 447; accounting for- cost, i, ii (p. 91); definitions, ii(p.91). Advances; to other companies, 405, 406; to employ- ees as working funds, 413; of insurance and rents, 416; from other companies, 429. Advertising; operating expense, 80; revenue from privileges, 110; debit to rent income, 204; expense on miscellaneous physical property, 205, 219. Affiliated companies; investment in, 405; definition, 405n; nonnegotiable debt to,' 429. Amortization; of franchise costs, 91; of debt discount and expense, 222, ill (p. 76); reserves, 444. Appropriations; to reserve funds, 309; for dividends, 310; for investment in physical property, 311; to reduce stock discount, 312, ii (p. 75); to reduce debt discount, 313; to extinguish debt, 314; mis- cellaneous, 314; balances in reserve funds, 441, 444, 449, 450; balances invested, 447; balances for debt retired, 447, 448; temporary, 447n, 448n. Assessments (for public improvements); inclusion in cost of work, xiii (p. 19); for paving mainte- nance, 10; for work at crossings, 16, 516: benefiting right of way, 502; for new paving, 611; during construction, 549. (See also Taxes.) Assessments (on stockholders) assignable to dis- count and premium accounts ii (p. 75), 423n. Assets; balance-sheet accounts, p. 73; current assets, p. 73; deferred assets, p. 73; contingent assets, iv (p. 76.) Associations; mspection and demurrage bureaus, 78; memberships in, 82, 89. Attractions; operating expense, 81; debit for income, 81. Audited accounts and wages payable, 431. Automobiles. (See Vehicles.) Auxiliary operations; accounting, ii, lil (p. 17); inclusion of parks, etc., 81n; inclusion of power business, 118n; revenues, ii (p. 45), 202; expenses, 214; rents payable, 217n; property investment, 401. Baggage cars investment, 530. Baggage service; station employees, 68; tools for handling, 69; loss and damage, 77; baggage checks, 94; revenue debits for transferring, 101; transpor- tation revenue, 102; storage revenue, 112. Balance-sheet accounts; adjustments and cancella- tions, 306, 317; form of statement, p. 73; definition, i (p. 75); contingent items, iv (p. 76); debit ac- counts, 401-422; credit accounts, 423-451. Ballast; maintenance material, 2; handling and placing, 8; investment for material, 505; mvest- ment for labor, 510. Betterments. (See Additions and betterments, > Boats. (See Floating equipment.) Bonds. (See Funded debt, Securities.) Bridges; ties, 3, 606; definition, 15; mamtenance, 15; overhead bridges, 16, 516; rents for, 97; rents from 115 203; conversion to embankments, 604, 515n; track construction on, 510; investment, 515; at hydraulic plant, 541. Buildings; maintenance, 17, 24, 46; repairs when rented by month, 24n; investment not used in operations, 404; way and structures investment, 617, 522, 523, 624; power system investment, 539 640, 641. Cable; telephone and telegraph, 18,618; for cable traction, 47, 542; at power plant, 47; for electric power, 49j 544. (See also Distribution system.) Canals; mamtenance, 46; investment, 541. Capital stock; liability, 423, 424; classes of issues, 423; definitions relating, 423n; expense of issue and sale, 660. Car privileges revenue, 110. Car-service; employees, 64, 65, 66; expenses, 67; for construction work, 529. Carhouses; maintenance, 24; machinery and tools, 36,536; employees, 70; expenses, 71; investment, 523. Cars; definition, 30, 31, 32, 530, 531; passenger and combination, 30, 530; freight, express, and mail, 31, 531; service cars, 32, 532; electric motive equip- ment, 33, 533; depreciation, 40; retirement, 41; inspection, 70; replacement when derailed, 78. Cartage; debits agamst freight revenue, 107; done by carrier (see Vehicles). Cash; in reserve and other funds, 402, 414; on hand and in transit, 407; in special deposits, 403. Casualty reserves, 441. Certificates. (See Capital stock. Receiver's cer- tificates.) Chair cars; maintenance, 30; revenue, 103; invest- ment, 630. Claims expense; for loss and damage, 77; for injuries and damages, 92, 548; interline, 420; operating reserves, 442. Classes of carriers; definitions, p. 13; condensed schedules of accounts, pp. 13, 14. Cleaning; of ditches, 8; of tracks, 8, 11; of conduits, 11; of tunnels and subways, 13; of channels under bridges, 15; of culverts, 15; clears, 67, 70; of switch lamps, 72. Clearing account; for ballast produced, 2, 505n; for road purchased, 527, 528n. Clerical force. (See Pay and expenses.) Collection expense; for operating revenues, i (p. 17); for freight and express matter, 76. Combination cars; definition, 30, 530; maintenance, 30; depreciation, 40; retirement, 41; investment 630. Condemnation costs, 502. Condensed schedules of accounts; for class B, p. 13; for class C, p. 14. Conducting transportation, 63-78. Conductors; pay, 64, 65; supplies, 67; collections, 407, 410. Conduits; underground traction, 11, 21, 520; tele- phone and telegraph, 18, 618; transmission system, 49, 544; for compressed air in shops, 536. Construction; credits to operating expense, p. 42; donations received in aid, 306, 311; appropriations, 311, 447; grants received in aid, 426; salvage, x (p. 93), 512n; work preliminary to, 501. (See also Road and equipment.) Contingent assets and liabilities, iv (p. 76). Contract work as factor in work costs, xiii (p. 19). Contributions (by carrier) ; to relief department, 87; to other companies, 223. (See also Donations, Gratuities.) 107 108 INDEX. Contritutions (to carrier); from other companies, 211; by public and other grants, 426. Control defined, 405n, 429n. Conversion; of securities, 424; of property, vi(p. 92). Coordinate departments. (See Auxiliary opera- tions, Other operations.) Corporate surplus, p. 74. Cost of work; factors in, xiii (p. 19). Crossings; special work, 6,508; maintenance, 16; investment, 516. Culverts; maintenance, 15; investment, 515. Current balances; assets, p. 73; liabilities, p. 74. Damages; to property transported, 77; to property not transported, 92; on account of personal injury, 92; to traclfs by collisions, etc. 92n; abutting, 502; during construction, 548. Dams; maintenance, 46; appurtenant to bridges, 516; investment, 541. Debentures; stock, 423; bonds, 427. Debt. (See Funded debt. Loans.) Debt expense; amortization, 222; extinguished through surplus, 313; defuiition and accounting, ill (p. 76); unextinguished balance, 418. Deferred items; assets, p. 73; liabiliti s, p. 74. Deficit paid on behalf of others, 203, 216n. Delayed items; distribution, vi (p. 18); iii (p. 45), ii (p. 55), ii (p. 65); debits to profit and loss, 316 Delivery expense on freight and express, 76. Demurrage; bureau expense, 78; revenue, 113. Deposits;' interest upon, 208; in redemption funds, 402; in lieu of property sold, 403; of current cash, 407; for special purposes, 408; by employees, cus- tomers, and others, 438. Depreciation; adjustment for retired property, x, xii (p. 19), iv, V (p. 92); accounting, xiv (p. 19); of way and structures, 25; of equipment, 40; of power system, 50; reserve fund, 414; reserves, 443, 445; of converted property, vi (p. 92). Dining cars; maintenance, 30; revenue, 103; debits for salable supplies, 103; investment, 530. Directors* fees, 89. Discount (capital stock); adjustment credits at reacquirement, 306; extinguishment through sur- plus, 312, 317; definition and accounting, ii (p. 75); exclusion from investment and operation, ii (p. 75), 547n; unextinguished balance, 417; credits for stock assessment, 423n. Discount (funded debt); amortization through in- come, 222; adjustment credits at reacquirement, 306; extinguishment through surplus, 313, 317; definition and accounting, iii (p. 76); exclusion from investment and operation, iii (p. 76), 647n; unextinguished balance, 418; on securities issued toward payment for equipment, ix (p. 93); assignable to investment, 547. Discount (misceUaneous); on securities of other companies, 207, 209; on material and supplies, 20Sn, 411n; on short-term notes, 221. Distribution system; maintenance, 22; investment, 621. Dividends (on company stock owned) excluded ', from dividend accounts, 206n, 223n. 31Qn, 412n. Dividends (payable); by lessee for lessor, 203, 216 435; appropriations from surplus, 310; deposits to meet payments, 408; due but unpaid, 433; declared but not due, 435. Dividends (receivable); income, 206; declared or accrued but not due, 206, 412; on stock in reserve funds, 206n. Docks; maintenance, 24; investment, 625. Donations (by carrier); for traffic purposes, 80; miscellaneous, 89. (See also Contributions, Gra- tuities.) Donations (to carrier); credits to profit and loss, 305; appropriated for investment, 311, 447. (See also Contributions.) Drayage. (See Cartage.) Electric equipment of cars; other than motive, 30, 31, 32; motive, 33, 40, 41, 533. Electric lines; in gravel pits, 2; poles and fixtures, 20, 619; underground conduits, 21, 520; distribu- tion system, 22, 521; miscellaneous expenses, 23; in buildings, yards, and grounds, 24n. Elevated structures and foundations; maintenance, 14; investment, 514. Engineering; for way and structures, 1; supervising olBcors and corporations, 83; for valuation, 90; assignable to investment, 501. Enginemen for steam locomotives, 75. Equalization of maintenance; debits and credits to expense, 28, 44, 61: operating reserves, 442. Equipment; superintendence, 29; rolling stock mamtenance, 30-34; floating equipment main- tenance, 35, shop equipment, 36, 536; vebiclea and horses. 38, 538; miscellaneous maintenance, 39; deprec&tion, xiv (p. 19.;, 40, 50; retirement, 41; other operations debits and credits, 42, 43; equalization debits, 44; power system equipment maintenance, 47, 48; damage from collisions, etc., 92n; asset balances, 401: depreciation reserve, 443; conversion accounting, vi (p. 92): costs paid in installments, ix (p. 93); work equipment at close of construction, x (p. 93); factors of investment cost, p. 101 ; retirement credits, p. 102; equipment purchased with road, 527; rent and repairs during construction period, 529; rolling stock invest ment 530-534; floating equipment investment, 535; office and miscellaneous investment, 537, 538; power system equipment investment, 542, 543. Expenses. (See Auxiliary operations. Debt ex- pense, MisceUaneous physical property. Oper- ating expenses.) Express cars; maintenance, 31; depreciation, 40; retirement, 41; investment, 531. Express charges; assignable to loss and damage, 77; on advertising matter, 80; on company material, 411. Express service; trainmen, 65; station employees, 68; collection and delivery, 76; loss and damage, 77; traflje force, 79; definition, 105; revenue, 105. Fares. (See Passenger service.) Fastenings nf rails; maintenance material, 5; main- tenance labor. 8; investment. 507. Fences; placing snow fences, 12; right-of-way and snow-fence mamtenance, 16; fence maintenance at buildings, 24, 40; investment for road, 516; invest- ment tor buUdings, 522 524, 539, 540; fences at hydraulic plant, 541. Ferries. (See Floating equipment. Water lines.) Fidelity bonds. (See Insurance.) Fines; mcident to mail service, 104; for violations of law, 317. Floatmg equipment; maintenance, .35; depreciation, 40; retirement, 41; operation 74; investment, 535 Franchises; amortization, 91: amortization reserve, 444; amounts paid for, 545. Freight cars: maintenance, 31; depreciation, 40; re- tirement, 41; investment, 531. Freight charges; includible in cost of work, xiii (p. 19); includible in ballast maintenance, 2; in- chidible in investment, iii (p. 92); incindible in vahte of material and supplies, 4111, ii (p. 92); for movement of equipment acquired, p. 101. (See also Transportation.) Freight service; trainmen, 66; station employees, 68; unloading costs, 68; tools for handling, 69; col- lection and delivery, 76; loss and daihage, 77; traffic force, 79; revenue, 107; uncollected charges debited, 107, 225; storaee revenue, 112; intcrluie revenue balances, 410, 432; receipts from sale held in suspense, 446; during construction, 550. Fuel; for track shops, 9; for shops, 37; for power plant and motor service cars, 53; for heating cars, 67; for carhouses, 71; for .signals and interlockers, 72; for floating equipment, 74; for steam locomo- tives, 75; for garages and stables, 90: not charged out, 411. ' ** " Fimded debt; appropriations for payment, 311, 314, 447, 448; unmatured, 427; classes of issues, 427; deflnitions relating to, 427n; matured but tmpaid, 434; drawn for redemption 434; expense (see Debt expense). Funds. (See Deposits, Reserve funds. Working funds.) Furniture; repairs for superintendence oflices, 1 29, 46, 63, 79; maintenance and investment for float- ing equipment, 35, 635; repairs for stations, 69; repau^ for general offices, 86; investment for offices, 637. INDEX. 109 Garage expense, 98. Gas plant owned, 404. General and miscellaneous expense; assignable to operation, 83-100; assignaole to investment, 545-650. General oiEces; expenses of departmental offices in general office buildings, In, 29n 79n; maintenance, 24; officers' salaries and expenses, S3; clerks' pay and expenses, 84; office supplies and expenses, 85; investment in buildings, 522; furniture and flt- tings, 637; salaries and expenses assignable to construction, 550. Grading; for track maintenance, 8; for roadway construction, 604; around buildmgs, 622, 524, 539, 640. Grants in aid of construction, 426. Gratuities; to employees or heirs, 88; miscellane- ous, 89. (See also Donations.) Gravel pit expense, 2. Grounds. (See Buildings.) Harness; maintenance, 38; investment, 638. Heat department. (See Auxiliary operations, Other operations.) Horses; replacement cost, 38; stable expense, 96; investment, 538. Hospital expense; due to casualties, 92; fimd assets, 414; fimd liability, 437; during constmction, 548. Hydraulic plant; maintenance, 46; investment, 541. Ice; removal from tracks, 13; used at shops, 37; used at stations, 69. Income; form of statement, p. 63; definition of accounts, i (p. 55); delayed items, ii (p. 56); credit accounts, 201-212; debits for property ex- pense, 204; debits to adjust book value of securi- ties, 207, 209; debit accounts, 213-225; income balance, 302, 308; delayed items adjusted through profit and loss, 304, 316. Income tax; on carrier's income, 215; assmned by carrier, 225. Incorporation expense, 550. Injuries expense; chargeable to operation, 92; operating reserves, 442; chargeable to invest- ment, 648. Inspection; inclusion in cost of work, xiii (p. 19); of track, 8; of bridges, 15; of transportation, 63; of equipment, 70, p. 101; inspection bureau ex- pense, 78; of track material for construction, 506-509; of bridge, trestle, and culvert material, 515; of floating equipment, 536. Insurance; recoveries, ix (p. 18), x, xii (p. 19), iv, v (p. 92); on employees^ 88; premium and reserve Charges, 93; on material in transit, 93n; on mis- cellaneous physical property, 206, 219; fund assets, 414; premiums paid in advance, 416; reserve liability, 441; assignable to construction, KO. Interchange of equipment, interline balances on, 410, 432. Interest (on company debt owned) excluded from interest accounts, 207n, 220n, 412n. Intere.st (payable); payable by lessee for lessor, 203,216,435; on funded debt, 220, 435; on receiver's certificates, 220, 221, 435; on unfunded debt, 221, 436; on matured funded debt and on aecounts, 221; expense for payment^ 225; relation to debt discount and premium, ill (p. 76); deposits to meet payment, 408;- on debt to affiliated com- panies, 420; matured but unpaid, 433; for con- struction period, 647. Interest (receivable) ; from funded securities owned, 207, 412; accrued on matured securities owned, 208; accrued to reserve funds, iv (p. 55), 207n, 208n, 309; from unfunded securities owned, 208, 412; from 1 anfc deposits and open accounts, 208, 412, 547; from funds used in construction, 547. In terline accounts; revenue!: alances, 410, 432; claims balances, 420. Interlocking apparatus; maintenance, 17; opera- tion, 72; investment, 517. Investment; transportation costs tncludirle, p. 42; appropriations for, 311; in road and equipment, 401; in funds and deposits, 402, 403; in miscellane- ous physical property, 404; in securities and ad- vances, 405, 406. (See also Road and equipment.) Jointly used facilities; rents payable, 97; rent re- ceivable, 116. . , r ■ t Joints of rails; maintenance material, 5; mamte- nance i&boi, 8; investment, 507. Land; miscellaneous investment, 404; accounting when sold or reolassed vii (p. 93) ; tor right of ay, 502; other than for right of way, 503; for wharves, 525n; for parks and resorts, 526n. Law expense; assignable to operation, 86, 92; debit against rent income, 204; of lessor companies, 224; assignal: le to investment, 502, 546, 650. Leased road; income from, 203; taxes on, 215; rent for, 216; operating deficit paid by lessor, 216n. Lessor companies corporate expense, 224. Liabilities; talance-sheet acccunts, p. 74; current liabilities, p. 74; deferred lia ilities, p. 74; con- tingent liafllity, iv (p. 76); assumed with road purchased, 527. Light department; equipment maintenance, 22, 47; Investment, 639, 540, 642. fSee' also Auxiliary operations. Other operations.) Loans; short-term loans receivable, 409; short-term loans payable, 430; long-term loans (see Ad- vances.) Locomotives; definition, 34; maintenance, 34; de- preciation, 40; retirement, 41; steam locomotive operation, 76; investment, 534. Loss and damage; expense, 77; reserve, 442. Losses; on miscellaneous physical property, 219, 317; by sale of investment securities, 317; on items pro- tected by insurance, 441. Lubricants; for power plant, 56; for substations, 58; for car-service equipment, 67; for steam locomo- tives, 76. (See also Oil.) Machinery; roadway, 9, 512; foundations, 24, 46, 536, 639, 640; for floating equipment, 36; for shops, 36, 536; for grading, 504; apportionment between con- struction and operation, 512n; inclusion in ma- terials account, 612n; for drawbridges, 615; for ves- sel landings, 526; for power system, 542, 543. Mail cars; maintenance, 31; depreciation, 40; re- tirement, 41; investment, 531. Mail service; revenue, 104; debits for penalties, 104; accounts receivable t alances, 410. Maintenance costs; apportionable to auxiliary operations, iii (p. 17); for power system, iv (p. 17), 45-49; for way and structures, 1-28; for equipment used in light lusiness, 22, 47; for equipment, 29- 44; of parks and resorts, 81; of property rented from others, 97; debits against rent income, 204; of miscellaneous physical property, 205, 219. (See also Repairs.) Maintenance of organization of lessor companies, 224. Material; inclusion of insurance in costs, 93n; store expense, 96; charges on construction material, p. 42, iii (p. 92); discount on bills, 208n, 411n; asset balances, 411; inclusion of transportation charges in cost, p. 42, 411; furnished for benefit of others, 420; on hand at close of construction, x (p. 93); portable machinery and tools, 512n. (See also Salvage.) Mileage book receipts, open account for, lOln, 446. y ilk revenue, 106. Miscellaneous physical property; net income or loss from, 205, 219; profit from sale, 306; loss by sale, destruccionj or abandonment, 317; asset balances, 404; depreciation reserves, 445; debits for land re- classed, vii (p. 93). Mortgages on realty, liability for, 427. Motormen's pay, 64, 65. Nonaffiliated companies; investment in, 406. • Nonnegotiable debt to affiliated companies, 429. Notes (payable); liability, 427, 430; to affiliated companies, 429. Notes (receivable) asset balances, 409. (See also Securities.) Office equipment; maintenance at general offices, 55; maintenance at departmental offices, 94n; in- vestment, 537. Office expenses; of superintendence offices, 1, 29, 45, 63,79; of general offices, 85; of law force, 86, 546; of valuation force, 90; of lessor companies, 224; for organization of company, 550. Officers' salaries and expenses. (See Fay and ex- penses.) Oil; for oiling roadway, 11; for shop use, 37; for fuel 53; for ppwer plant use, 65; for car lighting, 67 (See also Lubricants.) 110 INDEX. Operating expenses; deflnit.'on, i (p. 17); inclusion of unaudited items, v (p. 18); delayed items, vi (p. 18); for steam operations and water lines, vii (p. 18); charges for property retired, x xii (p. 19), iv,v(p.92); way and structures maintenance, 1-28; credits for way and structures material, 4-7, 9, 10, 13-18, 20-22, 24; credits for other operations, 27, 43, 62, 100; equalization credits, 28, 44; equipment maintenance, 29-44; credits for equipment ma- terial, 30-34, 36, 38, power system expense, iv (p. 17), 45-62; credits for power system material, 46-49; credits for power exchanged, 60; credits for power cost distribution, 61; conducting transpor- tation, 63-78; trafHc costs, 79-82; credits for in- come from resorts, etc., 81; general and miscellane- ous expense, 83-100; credits for manure sold, 96; credits for handling construction forces and ma- terial p. 42, iii (p. 92): income debit for railway operations, 213; property abandoned balance chargeable, 419: charges for minor additions and betterments, ' (p. 91); charges for excess cost of betterments, ii (p. 91); expense assignable to in- vestment, 550. Operating reserves; unaudited items, v (p. 18); liability balances, 442. Operating revenues; collection cost includible in operating expenses, i (p. 17); accounting, i (p. 45); delayed items, iii (p. 45); from transportation, 101-109; debits against passenger-service revenues 101-103; debits for mail service penalties, 104; debits against milk and freight revenues, 106, 107; debits for switching overcharges, 108: from opera- tions other than transportation, 110-119; debits against storage and demurrage revenues, 112, 113; income credit for railway operations, 201; balances in interline accounts, 410, 432; percentages pay- able imder franchise, 545n; revenue creditable to investment, 550. Optional accounting; for depreciation, xiv (p. 19); for equalization of expenses, 28, 44, 61; for distri- bution of power costs, 61; for adjustment of se- curity values, 207, 209; for extinguishment of debt discoimt, 313 iii (p. 76). Organization expense of lessor companies, 224. Other operations expense: accounting, iii (p. 17), iv (p. 17); way and structures maintenance, 26, 27; equipment maintenance, 42, 43; power expense, 62; general and miscellaneous expense, 99, 100. Overcharges: debits to revenues, 103, 106, 107, 108; operating reserve, 442. Overhead construction; poles and structures, 20, 619; feeders and trolleys, 22, 621; transmission lines, 49, 544. Parcel room receipts, 111. Parks; income and expense, 81; investment, 626. Parlor cars; maintenance, 30; revenue, 103; invest- ment, 530. Passenger cars; maintenance, 30; depreciation, 40; retirement, 41; investment, 530. Passenger service; trainmen, 64; station employees, 68; traffic force, 79; revenues, 101, 103; receipts held in suspense, 446; during construction, 550. Paving; maintenance at tracks, 10; mamtenance at buildings, 24, 46; investment, 611. Pay and expenses; of maintenance superintendence force, 1; of men in track shops, 8; of men keeping track open, 12; of employees at bridges, 16; of equipment superintendence force, 29; of shop em- ployees assignable to shop expense, 37; of power superintendence force, 45; of power plant em- ployees, 52; of power substation employees, 57; of transportation superintendence force, 63; of car- service employees, 64, 65, 66; of station employees, 68; of carhouse employees, 70: of signal and inter- locker employees, 72; of telephone and telegraph opeiators, 73; of floating equipment force, 74; of locomotive enginemen, 75; of collection and de- livery employees, 76; of emergency vehicle crews, 78:oi trafHcsuperintendenceforce79; of advertis- ing force, 80; of general officers, 83; of general oiHce force, 84, 86, 650; of law force, 86, 92, 646; of relief department force, 87; of trustees and directors, 89; of valuation forces, 90; of claims force and medical force, 92,648; of stores force, 96; of garage and stable forces, 96; of lessor company officers and employees, 224; audited balances unpaid, 431; ap- portionable to investment, xi (p. 93); of engineers and superintendents of construction, 501; of em- ployees prenaring ties, 506. Penalties; incident to mail service, 104; for viola- tions of law, 317. Pensions; payments, 88; fund assets, 414; fund lia- bility, 437. Per diem balances, 410, 432. Personal injuries. (See Injuries expense.) Pipe lines; maintenance, 46; rent for, 54; investment, 539, 641. Pledged securities, 404, 405, 422. Poles and fixtures; for telephone and telegraph, 18, 518; for overhead construction, 20, 619; numbering, 20, 519; for transmission system, 49, 644; revenue from attachments by others, 117. Power expense; accounting for production, iv Cp. 17), 45, 52-58; power purchased, 59; power ex- change balance, 60; credits for distribution of costs, 61, 62. Power sold ; maintenance of equipment for delivery, 22; power exchange credits, 60; revenue, 118; aux- iliary operations accounts, 202, 214. Power system; equipment for signals, 17; equip- ment for delivery of power sold, 22; superintend- ence, 45; buildings and grounds, 46, 539, 540; hy- draulic plant, 46, 641; power plant equipment, 47, 542; substation equipment, 48, 643; transmission system, 49, 544; depreciation, 50; maintenance equalization, 51; furniture and fittings for build- ings, 537. Premium (capital stock); extinguishment at stock reacquirement, 306; delhiition and accounting, ii (p. 75); distribution to stockholders ii (p. 76); credits for stock assessments, 423n; liability bal- ance, 425; assignable to investment, 547. Premium (funded debt); release through income, 210; extinguishment at debt reacquirement, 306; definition and aocoimting, iii (p. 76); unextin- guished balance, 440; on securities issued for equipment, ix (p. 93); assignable to investment, 547. Premium (miscellaneous) on securities of other companies, 207, 209. Printing expense; for securing traiHc, 80; for law force, 86, 92, 546; for valuation force, 90; for general operating purposes, 94; for lessor com- panies, 224; for debt securities, iii (p. 76); for organization and construction, 650. Privileges; cost includible incostofwork,xiii(p.l9); gravel and quarry privileges, 2; park and resort privileges, 81; station and car privileges, 110; commercial business by telephone and telegraph companies, 114; attachments to poles by others, Profit and loss accounts; adjustment for property retired, xii (p. 19), v (p. 92); definition, i (p. 65); debits and credits for delayed items, li (p. 65); credit accounts, 301-306; debit accounts, 307-317; debits and credits to offset stock discount and premium, ii (p. 76); debits and credits to offset debt discount, premium, and expense, iii (p. 76); balance at close of fiscal period, 451; adjustment for land sold, vii (p. 93). Profit realized; from sale of equipment, 41n; from miscellaneous physical property, 206; from sale of property used in operations, 303; from sale of miscellaneous physical property, 306; from sale of Investment securities, 306; from sale of land vu (p. 93). ' Promotion expense, 550. Property; abandoned and retired, x, xi, xii (p. 19), IV, V (p. 92); road and equipment assets. 401; miscellaneous physical property assets, 404; property abandoned asset balance, 419; property converted, vi (p. 92); land sold or reclassed, vii (p. 93); right of way investment, 602; acquired with but not needed for right of way, 602; other land mvestment, 503; road purchased, 627 Provident funds; asset balances, 414; liability, 437. Quarry rights, 2. EaUs; maintenance material, 4; guard rails for special work, 4n, 508; slot raUs, 7, 509; mainte- nance labor, 8; third rail and underground con- tact rail, 22, 521; bonding cost, 22, 621; rails leased to others, 404; mvestment for material, 507- in- vestment for labor, 510. . ^SS''i','J^'^ securities; adjustments of book value, ;°°'„W'- w*"?*?^.?.*^ of discounts and premiurhs 423 427 " "' *■ ''^^' ™°'"«'<"i ™ liability INDEX. Ill Receipts outstanding; for stock Installments, 423; for debt installments, 427. Receiver's certificates; discoimts, expense, and premiumsjiii (p. 76); liability, 42S. Reconstruction; of operating property, ii (p. 91); of road purchased, 52S. Redemption funds. (See Sinking funds.) Refunds; of revenue from transportation, 101, 102, 103, 106; of storage revenue, 112; of demurrage, 113. Release of premiums on funded debt, 210, iii (p.76). Relief; expense, 87; fund assets, 414; fund liability, 437. Relocation; of transmission line, 49; of buildings acquired with land, 502; of poles of others, 502. Rent (payable); for superintendence offices, 1, 29, 45, 63,79; for ground for snow fences, 12; for water sources and pipe lines, 54; for instruction rooms, 63; for cash registers, 67; for stations, 69; for sig- nal and interlocker appliances, 72; for telephone and telegraph lines, 73; for general offices, 85; for jointly used track and facilities^ 97; for equip- ment, 98; for leased road, 216; miscellaneous, 217; paid in advance, 416; matured but impaid 433; accrued balances, 435; for equipment used in construction, 529. Rent (receivable); from telephone and telegraph line, 114n; from tracks and other facilities, 115; from equipment, 116; from buildings and other property, 117; from lease of road, 203; under sub- lease, 203n, 204; miscellaneous income, 204; from miscellaneous physical property, 204n; accrued balances, 412; credits to road and equipment, 550. (See also Privileges.) Repairs; charges to insurance suspense account, ix (p. 18); of engineers' instruments, 1; of rented superintendence offices, 1, 29, 45, 63, 79; of office furniture, 1, 29, 45, 63, 79; of way and structures, 2-9, 13-24, 92n; of roadway tools, 9; of paving, 10, 24; of buildings rented by month, 24n; of rolling equipment, 30-34, 92n; of floating equipment, 35; of shop equipment, 36; of small shop tools, 37; of vehicles, 38; of power buildings, 46; of power equipment and lines, 47-49; of rented waiting rooms and station furniture, 69; of general office equipment, 85; of rented general offices, 85; of damaged property of others, 92; excess cost of betterments, li (p. 91); of equipment used in con- struction, 529. (See also Maintenance.) Replacements; accounting, ix, x (p. 18), ii (p. 91), iv (p. 92); amounts held pending replacements, 403. Reserve funds; income of, iv (p. 55), 209; sinking fund balances, 402; insurance and other fund bal- ances, 414. Reserves; charges for property retired, x, xii (p. 19), iv, V (p. 92); -for £.3crued depreciation, xiv (p. 19), 443, 445; for equalization, 28, 44, 51; for injuries and damages, 92, 441, 442; surplus appropria- tions, 309, 311; for doubtful accoimts, 314; for payment of debt, 314; for insurance and casual- ties, 441; operating reserves, 442; for franchise amortization, 444; for sinking and miscellaneous funds, 449, 450; charges for equipment retired, 101. Resorts; operation expense and income, 81; in- vestment, 526. Retirement; of property when replaced x, xi (p. 19), iv (p. 92); of propertj^ when not replaced, xii (p. 19), V (p. 92); of equipment, 41, 101; profit and loss debits, 315; of debt, 447, 443. Revenues. (See Auxiliary operations. Miscella- neous physical property, Operating revenues.) Right of way; maintenance (see Roadway); invest- ment, 502. Riparian rights for wharves and docks, 525n. Road and equipment; credits for property retired, X, xii (p. 19), iv, V (p. 92); adjustments through profit and loss. 303, 315, vii (p. 93) ; asset balances, 401; depreciation reserves, 443; accounts defined, i (p. 91); basis of charges, iii (p. 91); adjustments for converted property, vi (p. 92);' credits for property sold, vii (p. "93), 502, 503n; credits for land withdrawn from transportation, vii (p. 93); investment under trust agreement, ix (p. 93); salvage credits at close of construction; x (p. 93), 504, 512n; pay and expenses apportionahle to construction, xi (p. 93); way and structures m- vestment 501-526, 528, 529; credits for property at close of construction, 502; road purchased, 527, 528; equipment investment, 530-538; power sys- tem investment, 539-544; general and miscella- neous investment, 545-550; credit for premiums realized, 547; misceUaneous credits, 550. R oadway ; maintenance lab or, 8 ; miscellaneous maintenance expense, 9; right of way investment, 502; clearing and grading investment, 504; labor assignable to investment, 510. Safety-first campaigns, 89. Salaries. (See Pay and expenses.) Sales profits. (See Profit realized.) Salvage; definition, viii (p. IS); insurance recover- ies, ix (p. 18); frompropertyretired,x, xii(p. 19), iv, V (p. 92); from property converted, vi (p. 92); from construction outfit, x (p. 93); from equip- ment, p. 102. Sanding track, 11. Sa^angs funds; assets, 414; liability, 437. Scrap material; cost of handling, 95; included in assets, 411. (See also Salvage.) Securities issued. (See Capital stock. Funded debt.) Securities owned; funded securities defined, 207n; adjustment of book value, 207n, 209n; profits and losses at sales, 306, 317; adjustments at reacquire- ment,306.317,iiCp. 75), iii (p. 76); in sinking and other funds, 402, 414; held as investment, 405, 406; company securities held, 421, 422; pledged, 405, 406, 422; in deposits, 408. Service equipment; maintenance, 32; depreciation, 40; retirement, 41; investment, 532. Shops; track shop supplies, 9; structures mainte- nance, 24; equipment maintenance, 36; expenses, 37; materials, 411; structures investment, 523; equipment investment, 536, 538; furniture and fittings, 537. Signal apparatus; at crossings, 16, 516; mainte- nance, 17; operation and rent, 72; investment, 517. Signs; bridge signs, 15; roadway signs, 16, 516; forming part of car, 30, 31; forming part of locomotives, 34; temporary and detachable, 67; for advertising, 80. Sinking funds; income from, iv (p. 55), 209; appro- priations to, 309; fund assets, 402; reserves bal- ances, 449. Sleeping cars; maintenance, 30; revenue, 103; deb- its for salable supplies, lOS; investment, 530. Snow removal; expense, 12; service equipment, 32. Solicitation; of traffic, 79; of stock subscriptions, 550. Special cars; revenue, 103; debits for salable sup- phes. 103. Special deposits, 408. Special work; maintenance material,- 6; mainte- nance labor, 8; investment for material, 508; in- vestment for labor, 510; paving in connection, 511. Stables; expense, 96; equipment, 538. Stationery; for valuation force, 90; for operation, 94; for lessor companies, 224; not charged out, 411; for construction, 550. Stations; structures maintenance, 24; pay of em- ployees, 68; expenses, 69; revenue from privi- leges, 110; structures investment, 524. Steam locomotives; maintenance, 34; operation, 75; investment, 534. Steam operations accounts, vii (p. 18). Stock. (See Capital stock. Securities owned,) Storage revenue, 112. Store expenses; for operations, 95; apportionablB to investment, iii (p. 92). Street improvements. (See Assessments.) Structures. (See Power system, Way and struc- tures.) Substations; structures maintenance, 46; equip- ment maintenance, 48; pay of employees, 57; sup- plies and expenses, 58; structures investment, 540; equipment investment, 543. Subways; maintenance, 13; investment, 513. Superintendence; of way and structures, 1; of equipment, 29; of power, 45; of transportation, 63; of floating equipment, 74; of traffic, 79; of preliminary and construction work, 501. Supplies; for way and structures offices, 1; for main- tenance of track and roadway, 9, 11, 12; for bridge men, 15; for equipment superintendence, 29; for shops, 37; for power superintendence, 45; for 112 INDEX. power production, 53-56, 58; for transportation superintendence, 63; for cars in service, 67; for stations, 69: for cai'liouses, 71; for signals and interlockers, 72; for teleptione and telegraph lines, 73; for floating equipment, 74; for steam locomo- tives, 75; for traffic offices, 79; for general offices, 85; for valuation work, 90; of stationery, 94; for garages and stables, 96; for sale on dining, slcep- mg, and special cars, 103; for lessor companies, 224. (See also Material, Office expenses.) Surplus; appropriated to reserves, 309; appropriar ted for dividends, 310; appropriated for debt re- tirement, 311, 314, 447, 448; appropriated for in- vestment, 311, 447; appropriated to offset dis- counts, 312, 313, ii (p. 75); miscellaneous appropri- ations, 314; corporate surplus accoimt, p. 74; re- serves balances, 441, 444, 449, 450. (See also Profit and loss.) Surveys preliminary to construction, 501n. Suspense accounts; for insurance recovered, ix (p. 18); for property abandoned, 419; debit balances, 420; credit balances, 446; for preliminary surveys and tests, SOln. Switches: ties for, 3, 606; special work for, 6, 508; targets and lights, 17; lamp supplies, 72; labor for construction, 510. Switching; debits against freight revenue, 107; reve- nue, 108; debits for overcharges, 108. Taxes; water rents, 54, 205, 219; on miscellaneous physical property, 205, 215n, 219; assignable to railway operations, 215; income tax, 215; special benefit taxes, 215n; miscellaneous, 218: income taxes of others assumed, 225; includible in debt expense, iii (p. 76); paid in excess of accrual, 439; accrued liability balance, 439: payable by lessee, 439; revenue percentages payable, 545n; for con- struction period, 549. (See also Assessments.) Telegraph: liae maintenance, 18; line operation and payments for use, 73; general office expense, 89; revenue fi'om operation and privileges, 114; in- vestment, 518. Telephone; line maintenance, 18: station expense, 69; line operation and payments for use, 73; gen- eral office expense, 89; revenue from privileges, 110, 114; revenue from operation, 114; invest- ment, 518. Tickets; printing, 94; sales receipts, 101; suspense account balances, 446. Ties; maintenance material, 3; maintenance labor, 8; investment for material, 506; investment for labor, 510. Tool expense; maintenance for roadway, 9; main- tenance in shops, 36. Tools; for track and roadway maintenance, 9, 11, 12, 512; small tools in shops, 37; for power plants, 56; for power substations, 58; for cars in service, 67; for handling freight and baggage, 69; credited at close of construction, iii (p. 92), x (p. 93); lor construction grading, 604: apportionment be- tween construction and operation, 512n: inclusion in materials account, 512n; for telephone and tele- graph construction, 518; for fitting electric equip- ment of cars, 533: for fitting locomotives for serv- ice, 534; included in shop equipment, 536. Track; in gravel pits, 2; maintenance labor, 8; mis- cellaneous mamtenance expense, 9; paving at tracks, 10, 611; cleaning and sanding expense, 11; bonding, 22, 521; in buildings, yards, and grounds, 24n; damaged by accident, 92; used jointly with others, 97, 115; leased to others, 203; held under lease, 216; labor invested, 510; traok scales, 524, Traffic accounts, 79-82. Trainmen; pay for keeping line open, 12; pay for car service, 64, 65; meals furnished, 67. Transmission system; maintenance, 49; investment, 544; roadway for patrolling, 544. Transportation includible in investment, p. 42, iii (p. 92), 606-609, 515, 518, 529, 535, (See also Freight charges,) Transportation service; expense of conducting, 63-78; revenue from, 101-109, Trestles; for road, 15, 515; at power plants, 46, 539; temporary, 504; track construction, 510; at hy- draulic plants, 541, Trustees' fees; includible in operating expense, 89; includible in debt expense, iii (p, 76), Tunnels; maintenance, 13; track construction, 510; investment, 513, Unadjusted balance-sheet items; debits p. 73; credits, p, 74. Uncollectible accounts; debits to income, i (p, 45), 225; debits to revenues, 107; reserve appropria- tions. 314. Undercharges uncollected, i (p. 45). Underground system; underground construction, 7, 609; conduits, 21, 49, 520; feeders and electric con- tact rails, 22, 521. Unfunded debt. (See Loans.) Valuation expense. 90. Vehicles: maintenance, 38; employees, 76, 78, 96; investment, 538. Vouchers; unaudited but included in operating ex- pense, V (p. 18) ; accounts written off, 306; audited but unpaid, 431. Wages; unclaimed and written ofl, 306; audited but unpaid, 431; paid (see Pay.) Wagons. (See Vehicles.) Water; removal from track, 8, 9, 12; for watering roadway, 11; for shops, 37; for generating power, 54; for substations, 68; for stations, ,69; for car- houses, 71; for signals and interlockers. 72; for steam locomotives, 75; for miscellaneous physical property, 205, 219, Water line accounts, vii (p, 18), ' Water-supply systems; maintenance, 46; miscella- neous investment, 404; power system investment, 639, 641, Way and structures; maintenance,' 1-24, 92n; de- preciation, 25; other operations debits and credits, 26, 27; maintenance equalization, 28; investment 501-629, Wharves: maintenance, 24; investment, 625. Working funds advanced employees, 413. Wreckage removal, 78. o % • - ■'•fr $ M r\ ■ ''--^k^^^i^