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 §§ 14.1-14.10). 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 using 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 following schedules, including those hyphenated to show the merging of accounts.** +In §§ 14.01-1 to 14.01-3, inclusive, the numbers to the right of the dash correspond with the respective schedule numbers in Uniform system of accounts for electric railways (condensed schedules of accounts), Interstate Commerce Commission, May 28, 1914. 14.01-2 Accounts for Class B carriers. For Class B carriersthose 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 are included under the title named in connection therewith. 58. Substation supplies and expenses. 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. 14.01-3 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 is as follows, the preceding numerals, as in the foregoing schedule, showing in each case the primary account or accounts the contents of which are included under the accompanying 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-Cr. IV. Conducting transportation: 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 for investment-Cr. *+ GENERAL INSTRUCTIONS-OPERATING EXPENSE ACCOUNTS 14.0-1 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 services, and the collection of revenues in connection therewith.*+f ††In §§ 14.0-1 to 14.0-14, inclusive, the numbers to the right of the dash correspond with the respective general instruction numbers in Uniform system of accounts for electric railways (operating expense accounts), Interstate Commerce Commission, May 28, 1914. Cross references to accounts are made by citing the account number, e. g., account No. 202, instead of the corresponding section number (§ 14.202). *For statutory citation, see note to § 14.00-1. Page 275 14.0-2 Auxiliary 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 expenses 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 operations-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.** 14.0-3 Exclusion of auxiliary operations expenses. Expenses in connection with maintenance and operation of plant and equipment used in auxiliary operations 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-Cr." Similarly, if 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 of 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 incidental revenues and expenses may be included in the railway operating revenues and expenses.*+ 14.0-4 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 equitably apportion the cost of power, as shown by this general account, between the railway and other utility departments. The charges to the other departments shall be cleared through account No. 62, "Other operations-Cr." This segregation of the maintenance and operation Page 276 *For statutory citation, see note to § 14.00-1. 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 produce 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.** 14.0-5 Unaudited bills and vouchers. When bills covering opererating 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 carrier's accounts.** 14.0-6 Distribution of delayed items. Delayed items are items representing transactions 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 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.*t 14.0-7 Subprimary accounts for steam operations and water lines. If a carrier operates a steam division, or has both electric and steam operations, 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 steam roads. (See accounts Nos. 34 and 75.) If the carrier operates a water line of 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.)** 14.0-8 Salvage and value of material removed. As used in these classifications, the terms salvage and value of material removed include the value to the carrier of material recovered or removed in the processes of repairing, 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.** 14.0-9 Insurance recovered. Insurance recovered on property damaged or destroyed shall be credited to the account to which the *For statutory citation, see note to § 14.00-1. Page 277 |