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Handbook of railroad expenses online

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dope buckets.

" Icing and watering " cars includes with the cost of the ice
and the water, the labor of placing it, and buckets, ladders and
hose, ice hooks or other small implements used in this connection.

The foregoing items cover the expense of work done and
material used at terminals in fitting the train for the run. In
addition, there is the expense for services on the run, such as
those incidental to the detouring of a train, as, for instance, cost
of pilot servke and expense of temporary use of tracks of other

" Other Expenses " is the subhead to provide for expenses of
a general character directly chargeable to the operation of trains,
such as, expense of keeping a lunch room for engineers, firemen
and train men, contributions to the Young Men's Christian
Association, and other organizations, with the expense of their
staff and organization, premiums on fidelity bonds of train men,
cost of testing for sight and hearing of engineers, firemen and
train men, cost of their uniforms, badges, etc., and of their
lanterns, with their supplies and the care of them; also the
cost of supplies furnished cars for protection against accident,
for the outfit of train tools, and signal equipment placed on
regular trains.


In addition to the foregoing, which are regular features of
train expense for all trains, there are emergency expenses, such
as transferring passengers around a wreck or broken track,
with incidental cost of provisions on board for passengers, or
feed for live stock, on delayed trains. There are expenses special
to certain kinds of service, such as, furnishing dunnage for
freight cars, or chaining loads, putting in temporary grain doors,
lining or planking, or boarding box or stock cars (but permanent
grain doors and double decking are charged to " Freight Car

It has been ruled that where the engine is turned upon the
Y of another company the trackage expense incurred there-
for is a charge to " Train Supplies and Expenses" (Case 521).
Temporary sugar cane rocks installed in freight cars (Case 611),
removing advertisements from cars ( Case 281 ) are charges to this
account. While cleaning of cars is an item chargeable here, the
cleaning of the yards of debris resulting from car cleaning is M.
of W. and S. "Roadway and Track" (Case 40). Water
furnished engines is always a charge to locomotive water supply
and never to this account (Case 74). Rent for permanent plant
used temporarily by trains ( Cases 74, 521 ) , or temporary or per-
manent use of devices used by train men, not fixed parts of the
cars or locomotives (Case 89), is charged to this account, except
of course, in all cases hire of equipment (excluding emergency
hire of wreck train cars which is charged to " Clearing
Wrecks"), has its own account under "Deductions from
Gross Corporate Income."

Profits on icing or similar service performed by this account
are credited to this account.

Lubrication of work train cars or exterior cleaning of out-
side operation cars is not a charge to this account (Cases 245,

90. Interlockers and Block and Other Signals Operation.
Having given the road the equipment and the power forming


the train unit, and the supplies and the crew to run the train,
there remains the expense of manning the road between terminals
to keep the right of way clear, to set the proper signals, to close
the drawbridges, to keep open a system of wire communication,
and to furnish a staff called dispatchers, that shall have a cen-
tralized control of the train movement. Under such classifica-
tion of function this account provides for the service that gives
the line through the yards by means of switches and controlling
signals. Being definitely a line of road account it does not
include interlocking plants operated exclusively for control of
yard movements.

The work is done by switch tenders, signalmen and levermen,
and their is a secondary expense of sectionmen, oiling switches,
stationary engineers and firemen, who operate the air compres-
sors, lamp cleaners and lamp lighters, and all supplies and
expenses for fuel, water, light and furniture incidental to the
work. Telegraph operators belong to a service that is a class to
itself; a service that keeps the system of wire communication
open for all the general purposes of operation of the road, and
they therefore are not included here, because this staff is devoted
exclusively to the mechanical throwing of switches and control-
ling of signals.

91. Crossing Flagmen and Gatemen. If the line of road
between terminals were upon an inviolably private right of way
with highway crossings on separated grades, there would be no
necessity for crossing flagmen and gatemen. This account in
effect provides for those points where the public traffic abuts
upon the railroad operation. It covers the current expense in
every form by which the railroad protects its operations from
such interference. Sometimes this protection is afforded by
installation of alarm bells, or electric light ( Case 269 ) , and again
by the stationing of crossing flagmen, who merely operate hand
signals of flag and lantern; and again it is an elaborate
installation of gates controlled by an operator, the operator


sometimes being placed in a tower so that his view may be

92. Draw-Bridge Operation. The line of road between ter-
minals should be an unbroken open way to permit the free move-
ment of the train unit. But this line is crossed frequently by the
public at various points at grade, and to protect the train move-
ment from interference there is installed a crossing service to
keep the rail traffic separated from the crossing traffic when the
crossing is not made on separated grades. This theoretically
unbroken line between terminals is unavoidably broken again by
navigable rivers where the crossing is made on a level too low
to permit of vessels passing underneath. This makes necessary
the draw-bridge which, as it were, is a water traffic crossing the
rail traffic at grade. In order to make the crossing by water
possible, the rail line must be broken, and the rail traffic held
back. To operate these draw-bridges, and to watch approaching
boats and signal approaching trains, a staff of bridge tenders
and watchmen is necessary, and with this expense is included all
labor and material expense of operating the draw-bridge, and
running the stationary engines required. With the supplies of
fuel and oil are included all small tools and incidental furniture
and equipment (including boats), which come in such small
units that they are considered practically of the nature of sup-

93. Clearing Wrecks.* No business can operate without
mishap. Railroads are peculiarly subject to accident because
of the very exact adjustment of all the parts of the machine,
both of men and of material, which is necessary to safe operation.
There are mishaps of various kinds affecting individual
employees or passengers, or trespassers, or articles of freight, or
detached cars in the yard ; but this account is provided for those
accidents which involve the revenue train unit in the road move-
ment. It is immaterial whether the accident be by the fault of

*See general discussion of Loss, Damage and Injury, General, page 180.


the transportation department or by defect of equipment, or
defect of track, the expense is charged to the same account. This
is due to the fact that the expense of a transportation blunder
would have to go here anyway, while in train accidents due to
default of other departments, the transportation, department
practically assumes such risks as an incident of its operation, in
large measure because it is not practicable always to exactly
locate the cause. In the same way, the effect of the wreck upon
the track is borne by M. of W. and S., and the effect upon the
rolling stock and locomotives, by M. of E., regardless which
department is at fault.

Clearing wrecks is primarily the clearing of obstructions from
the track, which is done partly by destroying the debris and
casting it clear of the rails, and partly by rerailing such equip-
ment as still can be moved on its own wheels. The work may
involve the construction of a temporary track around the wreck
in order immediately to restore the broken line to service, while
the permanent line is being repaired at more leisure. The cost
in labor of laying and removing such temporary tracks, as also
the cost for reloading dislodged freight or transferring freight
and passengers, express, baggage and mail are all a part of the
cost of clearing wrecks. But the expense of caring for passen-
gers or live stock if delayed on the road from any cause, whether
a train accident or weather, is charged to " Train Supplies and

Clearing wrecks embraces the direct cost of wages and sup-
plies used in work described above, and also includes the second-
ary cost of fuel and wages expense of any train service used, and
the wages of any wrecking master and assistant regularly
assigned to the duty of clearing wrecks as they occur.

Rental paid another company for wreck cars, engine and der-
rick used in emergency, is of the nature of an irregular and
special rent expense, and therefore charged to this account
instead of " Hire of Equipment " (Case 243).


94. Telegraph and Telephone Operation. The telegraph
and telephone service here contemplated is distinctly separate
from the commercial service, which is an Outside Operation and
handled accordingly (Case 43).

A railroad's operations are so scattered and at the same time
so interdependent, that a primary requisite is a system of wire
communication among all parts. To this end a regular service is
established. It is distinct from the commercial service except
when both purposes are served jointly. Dispatching, which is
the use of the service for the specific purpose of train control,
is an offshoot from it, and has its own particular staff and
expense. And at the other end of the .line the leverman or the
yardman, who may incidentally be in wire communication with
the dispatcher, is charged to his particular accounts, and is not
a part of the general telegraph and telephone service, because
he does not serve the general requirements for all departments,
nor is he part of the dispatching service proper, which includes
only those "operators on line whose duties are confined exclu-
sively to train movement/'

Telegraph operators specifically assigned to the local require-
ments of a station are not a part of the telegraph and telephone
service (Case 198). The expense of telegraph operators in gen-
eral offices is apportioned among the office accounts served
(Case 533} telegraph operators in traffic offices are charged to
" Superintendence," Traffic, account 53 (Case 619) and in out-
side agencies as '"Outside Agencies," account 54 (Case 619).
These classifications are for the reason that the telegraph and
telephone service is for the road as a whole, providing trunk
lines and relays, standards and general administration, and
offices when no one department has sufficient work to justify its
own office.

"With the direct work of receiving and transmitting messages,
is included the expense of messenger delivery, so that the com-
plete performance of the service from the receipt of the message,


to its delivery into the hands of the person to whom it is sent, is
provided for.

The account is subdivided under three heads, as follows:

Under " Operators and Messengers " is charged the wages
expense of the actual service, handling telegrams.

Under " Telephones " is chargd the service which differs from
telegraph service because it does not require skilled operators,
arid is therefore set out to a class by itself which includes all the
items, labor, supplies, material and miscellaneous expense inci-
dental to the general telephone service. Thus, in addition to the
pay of telephone operators and messengers, it includes the sup-
plies for renewing batteries and all rents and other costs (exclu-
sive of maintenance) incidental to the use of telephone cable lines
and conduits.

The wages expense of the telegraph service is provided for
under operators and messengers, while " Other Expenses "
embraces all other expenses of the telegraph service. These are
the pay and expenses of administration of the telegraph service,
and the cost of all supplies, furniture, light, rent and other
office expenses. Bicycles for messengers and excess payment to
telegraph companies are of the same class as rent of telegraph
conduits, lines and pole lines.

In case the superintendent of telegraph has charge both of
operation and of maintenance, his expense is divided equally
between the operation and maintenance accounts for this

95. Operating Floating Equipment. The railroad is a con-
tinuous line of track on land, or, at water or other crossings, on
bridges, or trestles. When these water crossings are too wide
to be bridged, and rail construction therefore is inexpedient, the
actual rail haul is broken by a link of intermediate water haul,
but the general character of the service is still that of railroad
transportation, unless this interposed link is operated by a sepa-
rate operating corporation, collecting its own revenue, and,


assuming its own responsibility to the public. The operation of
an intermediate link of water service is a part of the operation
of the railroad as a whole, and its expenses accordingly are
classified with the railroad expenses under appropriate general

Because it is an incidental service, the portion of the revenue
attributable to the intermediate water haul, classifies as a part
of the general railroad revenue. But, on the expense side, water
carriage is a distinct thing from carriage by rail, in the factors
that determine its expense, and the units against which this
expense may be measured.

In separating "Operating Marine Equipment 7 ' from the
regular rail service and setting it up as a sub-type of service, the
railroad expenses and the operating marine equipment expenses,
divide equally the direct current cost which is common between
the two. Such cost, for illustration, is that for the interchange
of traffic at the points of transhipment.

The marine service bears all expense of handling the traffic
after it is once in its possession until it delivers the traffic back
to the railroad ; the idea is that the marine service shall bear all
expense directly caused by it which is additional to the regular
expense of the rail operation.

Thus it pays for keeping its channel clear of sunken boats,
and indemnity for damage to boats of other companies, and
to wharves, and for the supervision exclusively assigned to it.
But it does not bear any proportion of " Superintendence,"-
Transportation, although embraced in the general jurisdiction
of this superintendence ; nor does it pay for " Stationery and
Printing " nor " Injuries to Persons," nor " Loss and Damage "
of freight or baggage although responsible, all such expense
being carried to the regular Transportation expense accounts.

On the same principle a power plant which serves the gen-
eral purposes of the railroad may be used in the transhipment
to and from boats, but without any charge being made to


" Operating Marine Equipment." If, however, the power is
not furnished by the company, but is paid for on the basis of its
use, it becomes a direct expense, to be divided, like the station
labor, between the rail and water service.

" Operating Floating Equipment " refers to the floating
equipment in revenue service. Should it be for roadway service
it is analogous to work train equipment and is charged accord-
ingly ; or should it be a launch used by a railroad transportation
official to expedite movement from point to point for railroad
inspection purposes, the expense is charged to " Superintend-
ence " and not to this account.

x In recognizing the various controlling conditions, the items
of this account fall under three general heads :

1. The expense exclusive of fuel of operating the equip-

ment which carries the traffic.

2. The expense of the fuel which drives the equipment,

which is a very large single supply expense and
must be watched with caution.

3. The shore expense of handling the traffic, called " Ele-

vation and Longshore Labor," which has no rela-
tion to the length of haul, but is subject to its own
peculiar conditions affecting costs.

The equipment falls into two classes: (1) the powered; (2)
the non-powered, and the expense of each of these is in turn
subdivided among,

(a] " Superintendence and Manning."
(6) "Charters."
(c) "Incidentals."

Taking up these groupings seriatim, the powered equip-
ment, which may or may not also have carrying capacity, is
distinct from the non-powered because its machinery calls for
more expense in wages, more elaborate organization and inci-


dentals, and because its heavier first cost and maintenance com-
pel better dispatchment or even constant movement, as in the
case of tugs. The equipment of this class is ferryboats, steam-
boats, power launches, steam lighters and tugboats.

The non-powered equipment, which has carrying capacity
only, is of much cheaper construction, and its dispatchment is
comparatively slow, much of its time being consumed in receiv-
ing and discharging. Its expense of operation is correspond-
ingly cheaper per month. Boats of this class are barges, car
floats, canal boats and lighters.

Equipment without power is charged primarily with the
labor expense of " Manning and Supervision/' and a proportion
of the administrative expense of the marine service.

The peculiar character of the operation gives rise to another
subhead, namely, " Charters/' As an expense for both hire of
boat and service of crew, " Charters " overlaps the expense for
similar service when performed by the company's own boats and
crews. With charters go payments for lighterage. Together
these constitute the cost of handling business in excess of the
railroad's capacity to handle with its own equipment.

In addition to the usual items, constituting the incidental
expenses, are included inspection and certain risks of operation,
such as indemnity for damage done to vessels or wharves, rais-
ing sunken boats, or removing cars or car trucks lost overboard,
or transferring cargo in case of accident. The nature of the
operation also introduces such expenses as wharfage, payment
of custom-house dues and license fees.

The expense of the powered equipment is divided in the
same three general classifications of, " Wages," " Charters " and
" Incidentals," as are used in case of the equipment without
power. To the expense of manning steamboats and tugboats
and their supervision is added the wages expense of the em-
ployees on land who handle the passenger service to and from
the marine equipment, such as ferry station master, ferry agents,


ticket sellers, collectors, gatemen, and the incidental expense
of premiums of the bonded employees. With these also go the
wages of the men who clean the boats, together with the store-
keepers who issue the supplies.

The incidental expenses of the powered boats include, with
the usual supplies and small tools, the expense due to accident,
such as transferring passengers, raising sunken boats or indem-
nification for damages to vessels or wharves. (Like expense
when incidental to rail operation would be a charge, respect-
ively, to " Train Supplies and Expenses/' " Clearing Wrecks/'
and " Damage to Property.") With these items are also included
the expense of inspecting for safety, which is an incident of
operation. " Incidentals " furthermore includes items of a
character special to marine service, such as custom house or
license fees.

Fuel for power boats is set out in an item by itself, and it
includes with the invoice cost, the expense delivered on board
the boat.

Shore expense of handling freight is elevation and longshore
labor. This item includes all the expense incidental to the load-
ing and discharging of cargoes, loading and unloading of floats,
chargeable to the main account, " Operating Floating" Equip-

Where such work is performed at a railroad station,
such part only of station supplies and expenses is charged to
this account as is exclusively for the use of the floating equip-
ment service.

96. Express Service. The hauling of very high class goods
(generally in small parcels), in passenger trains, at a rate higher
than the freight rate, which includes free collection from con-
signor and free delivery to door of consignee, is designated
express service, in distinction from the hauling of goods of all
kinds, and generally in large bulk, in trains not passenger, and
at freight rates, which cover only delivery at station. The


express service is generally conducted by a separate company
which performs all the terminal work, provides a " messenger "
attendant in transit, assesses and collects the revenue and settles
on some contract basis with the railroad which furnishes the car,
the track and the movement. Or, the railroad company may
conduct its own express business directly. In either case, the
revenue enjoyed by the railroad is derived from the use of its
general facilities, and is therefore a regular railroad revenue. So
far as the company is at any expense in addition to that of its
regular service, the cost is carried to the separate account
" Express Service. 7 ' Should the railroad devote a considerable
plant to the express business and have a regular organization
to conduct it, the business would be an Outside Operation.
The account is subdivided into:

(a) Drivers and Messengers, including their fidelity

bonds, uniforms and badges.
('&) Horses and their upkeep of feed, shoeing, stabling

(including stable rent), and replacing,
(c) Maintenance of equipment of wagons, harnesses

and automoblies.

97- Stationery and Printing. An inseparable feature of all
team work on a large scale is a system of records and recorded
communications. These are the facilities through which those
vested with authority in the organization make this authority
effective, with certainty and precision, beyond the range of im-
mediate personal contact. The staff, through the several grada-
tions, perform the function of administration by assembling the
facts of current operation that serve as the basis on which those
in authority issue their orders, and by recording and delivering
those orders. To make these records and recorded communica-
tions, a class of supplies and desk facilities is required which
are generally designated " Stationery and Printing/'

The supplies and articles embraced in this designation pri-


marily were limited to actual stationery and printing, together
with such necessary incidental articles as pens, inks, pencils and
erasers, which were distinguished from the more permanent facil-
ities for office work and convenience called furniture, such as
desks, chairs and tables. With the development of office appli-
ances the pen has been largely superseded by the typewriter, the
calculating table, by the calculating machine, the process of hand
copying, by machines for mechanical duplication. The first
notion of stationery and printing has been extended to include
these appliances, which really have ceased to have the character
of supplies, but are sometimes even more permanent and expen-
sive than the class of articles known as furniture. For illustra-
tion we have the typewriter, the adding machine and the cyclo-
style classed with pens, inkstands and erasers. The line
between furniture and supplies of this character is at the last
drawn arbitrarily. Thus, for instance, the multigraph would
be classified as " Stationery and Printing," while the printing
press would be counted as furniture. The letterpress is " Sta-
tionery and Printing/ 7 but the stand on which it rests is furni-
ture. With writing paper, is included wrapping paper and
twine (twine used at stations is charged to " Station Supplies "
and on floating equipment to " Operating Floating Equip-
ment"). With the stationery is "charged out" all fixed and
incidental expenses of a stationer and staff. To " Stationery
and Printing " is charged all the stationery and printing used in

Online LibraryJames Shirley EatonHandbook of railroad expenses → online text (page 15 of 52)