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line damaged in collision or wreck for which a carrier is liable should be charged to account
"Damage to Property."

See Cases, 147 256.



TEXT OF CLASSIFICATION OF OPERATING EXPENSES 275

29. ELECTRIC LOCOMOTIVES RENEWALS

This account includes the original cost (estimated, if not known), record
value, or purchase price of all electric locomotives condemned, destroyed, or
sold, less:

(a) Amount previously charged for depreciation up to date of retirement;

(6) Scrap value of salvage or the amount received from sale of electric
locomotives retired.

NOTE A. Electric locomotives permanently retired from service, but held, pending
disposition, should be written out of service through this account, and carried in an appro-
priate material account, at a nominal valuation or at actual scrap value, if determinablc.

NOTE B. The term "record value" should not be interpreted to mean the value of
equipment as it stands in the capital account, unless that account represents the original
value of the equipment on hand.

30. ELECTRIC LOCOMOTIVES DEPRECIATION

[This account includes a monthly charge of one-twe.lfth(^) of per cent per annum of the
original cost (estimated, if not known), record value, or purchase price of electric locomotives
to provide a fund for replacement when retired.}

This account includes a monthly charge representing depreciation on
electric locomotives. This monthly charge should be computed at a certain
rate per cent on the original cost (estimated, if not known), record value,
or purchase price of such electric locomotives. Charges should be made
to this account during the life of the electric locomotives, except in cases
of electric locomotives which attain to greater than a normal life. In such
a case charges should cease when the difference between the original cost,
record value, or purchase price and the estimated scrap value shall have
been charged to this account. In case of electric locomotives prematurely
retired charges to this account should cease with the charges for the month
in which such retirement occurs. The sum of the monthly charges during
any fiscal year should equal the estimated depreciation during that year.

Note A. When electric locomotives are prematurely retired, the value (less
salvage) not previously taken up through charges to this account should be
charged, in the accounts for the months in which retired, to Account No. 29,
" Electric Locomotives Renewals," as provided in the text therefor.

Note B. The sum of the monthly charges to this account should equal the
value lost through depreciation in respect to a particular electric locomotive,
and together with the charge to " Electric Locomotives Renewals " and value
of salvage or amount received from_sale, should provide a reserve for replace-
ment of the electric locomotive when retired.



31. PASSENGER-TRAIN CARS REPAIRS

This account includes cost of material used (less salvage) and labor
expended in repairing, painting, varnishing, finishing, and lettering railway
passenger-train cars of all classes (see "Note A" under this account), and
cost of repairing and renewing furniture and fixtures thereof, such as brake
gear, carpets, cases, chairs, coal boxes, coat hooks, curtains, cushions, electric
bells, ice boxes, ice tanks, lamp canopies, lamps (except signal or train),
linoleum, mail catchers, mats, matting, pigeonholes, racks, ranges, rugs,



276 RAILROAD EXPENSES

signal and bell cord hangers, speed recorders, stoves, tiles, water tanks;
cost of material used and labor expended in cleaning or scrubbing preparatory
to painting; scraping and burning off old paint; reupholstering seats and
chairs; rewiring, repairing, and renewing curtains and fixtures; cost of
electric-lighting fixtures permanently attached to cars; gas tanks, gas gages,
and gas, oil, and carburetor lamps; piping and other permanent fixtures used
in gas lighting; all appliances used in carburetor lighting permanently
attached to and forming part of a car; steam pipes, radiators, and other per-
manent appliances for heating cars, including steam-heat, hose, cost of repairs
to the car feature of motor cars engaged in passenger service; also cost of
supervision; pay of car inspectors while engaged in inspecting passenger-
train cars, and cost of cutting up such cars when condemned; also repairs
made to passenger-train cars of foreign lines in service of a carrier for which
it is responsible. Cost of testing air brakes; material used by car inspectors
and car repair men while engaged in inspecting and making light repairs
to cars at stations, yards, and elsewhere. Cost of small hand tools used
exclusively in inspecting and repairing passenger-train cars; traveling expenses
of employees whose pay is chargeable to this account, and payments of royal-
ties, or for patent rights on brakes, brake fixtures, and other appliances used
on passenger-train cars; payments to foreign lines for passenger-train cars
belonging to such lines destroyed on the line of a carrier while in its service;
also proportion of shop expenses as provided in Note following account
"Other Expenses."

The value of old material released during repairs, insurance recovered,
and repayments from other roads, should be credited to this account.

The COSt of [repairing special features of passenger-train] general Or shop repairs

of cars, the operations of which are treated as "Outside Operations,"
should not be charged to this account.

NOTE A. The following cars are classified as passenger-train cars:
Air-brake instruction, [Dining], Passenger,

Baggage, Emigrant, Passenger baggage mail,

Baggage express, Express, Pay,

Baggage mail, Library, Postal,

[Buffet], Mail, Refrigerator express,

Business, Milk, Smoking,

[Cafe], Observation, Street,

Chair, Officers, [Tourist].

Colonist, [Parlor],

Combination passenger and [Parlor baggage],
baggage,

NOTE B. The word "repairs" as here used includes all repairs to or renewals of parts
of passenger-train cars, commonly known as fixtures or attachments and classified as running
repairs; also repairs to or renewals of the more important or vital parts of passenger-train
cars, the necessity for which is caused by breakage or failure while in service; also the
repairs to passenger-train cars, damaged through accident or otherwise, necessary to
restore them to service; and also renewals of important or vital parts made necessary by
reason of age or wear and tear from use.

NOTE C. The cost of repairing passenger-train cars of foreign lines waybilled as
freight, damaged in transit, should be charged to account "Loss and Damage ^Freight,"
and the cost of repairing passenger-train cars of foreign lines having trackage rights over
a carrier's line damaged in collision or wreck for which the carrier is liable should be
charged to account "Damage to Property."

See Cases 55, 73, 138, 147, 264, 336, 633.



TEXT OF CLASSIFICATION OF OPERATING EXPENSES 277

32. PASSENGER-TRAIN CARS RENEWALS

This account includes the original cost (estimated, if not known), record
value, or purchase price of all passenger-train cars condemned, destroyed, or
sold, less:

(a) Amount previously charged for depreciation up to date of retirement;

(6) Scrap value of salvage or the amount received from sale of passenger-
train cars retired.

The cost of renewing passenger-train cars, the operations of which are
treated as " Outside Operations" (except dining, cafe, and buffe"t cars) should
not be charged to this account.

NOTE A. Passenger-train cars permanently retired from service but held, pending
disposition, should be written out of service through this account, and carried in an appro-
priate material account at a nominal valuation or at actual scrap value, if determinable.

NOTE B. The term "record value" should not be interpreted to mean the value of
equipment as it stands in the capital account, unless that account represents the original
value of the equipment on hand.

See Case 55.

33. PASSENGER-TRAIN CARS DEPRECIATION

[This account includes a monthly charge of one-twelfth (Y%) of per cent per annum of the
original cost (estimated, if not known) , record value, or purchase price of passenger-train cars,
to provide a fund for replacement when retired.

The charge for depreciation on passenger-train cars, the operations of which are treated
as "Outside Operations" (except dining, cafe, and buffet cars) should not be charged to this
account.]

This account includes a monthly charge representing depreciation on
passenger-train cars. This monthly charge should be computed at a certain
rate per cent on the original cost (estimated, if not known), record value,
or purchase price of such passenger-train cars. Charges should be made
to this account during the life of the passenger-train cars, except in cases
of passenger-train cars which attain to greater than a normal life; in such
a case charges should cease when the difference between the original cost,
record value, or purchase price and the estimated scrap value shall have
been charged to this account. In case of passenger-train cars prematurely
retired charges to this account should cease with the charges for the month
in which such retirement occurs. The sum of the monthly charges during
any fiscal year should equal the estimated depreciation during that year.

Note A. When passenger-train cars are prematurely retired, the value (less
salvage) not previously taken up through charges to this account should be
charged, in the accounts for the months in which retired, to Account No. 32,
" Passenger-train Cars Renewals," as provided in the text therefor.

Note B. The sum of the monthly charges to this account should equal the
value lost through depreciation in respect to a particular passenger-train car,
and together with the charge to " Passenger-train Cars Renewals " and value
of salvage or amount received from sale, should provide a reserve for replace-
ment of the passenger-train car when retired.

See Cases 48, 49, A65.



278 RAILROAD EXPENSES

34. FREIGHT-TRAIN CARS REPAIRS

This account includes cost of material used (less salvage) and labor
expended in repairing, painting, and lettering freight-train cars of all classes
(see "Note A" under this account), furniture for cabin or caboose cars, and
fixtures for all freight-train cars, including cost of renewing same; such as
brake gear, coal boxes, coal hods, curtains, cushions, deck lamps, flag and
torpedo boxes when attached to cars, ice boxes, lamp fixtures, links, and pins
racks, stoves and fixtures; also cost of fixed or permanent grain doors and
lumber for them; racks and ventilating systems for refrigerator cars, and
material used and labor expended in double-decking cars for live stock; also
cost of supervision; pay of car inspectors while engaged in inspecting freight-
train cars; and cost of cutting up such cars when condemned; also repairs,
for which a carrier is liable, made to freight-train cars of foreign lines in its
service. Cost of testing air brakes; material used by car inspectors and car
repair men while engaged in inspecting and making light repairs to cars at
stations, yards, and elsewhere. Small hand tools used exclusively in inspect-
ing and repairing freight-train cars. Traveling expenses of employees whose
pay is chargeable to this account; expenses of light-weighing freight-train
cars; payments of royalties, or for patent rights on brakes, brake fixtures,
and other appliances used on freight-train cars; payments for foreign freight-
train cars destroyed on the line while in a carrier's service, or to foreign
roads for repairs to a carrier's freight-train cars; also proportion of shop
expenses as provided in Note following account "Other Expenses."

The value of old material released during repairs, insurance recovered,
and repayments from other roads should be credited to this account.

NOTE A. The following cars are classified as freight-train cars:

Ballast (when in commer- Fruit, Platform,

cial service) Furniture, Poling,

Beer, Gondola, Poultry

Box, Gondola hopper, Produce,

Cabin, Gondola long, Rack,

Caboose, Gun trucks, Refrigerator,

Charcoal, Hay, Stock,

Coal, Lime, Tank and water (when used

Coke Logging, as commercial cars).
Dump (commercial, coal or stone), Oil tank,

Flat, Ore,

NOTE B. The word "repairs" as here used includes all repairs to or renewals of parts
of freight-train cars commonly known as running repairs; also repairs to or renewals of
the more important or vital parts of freight-train cars, the necessity for which is caused
by breakage or failure while in service; also the repairs to freight-train cars damaged
through accident or otherwise, necessary to restore them to service, and also renewals
of important or vital parts made necessary by reason of age or wear and tear from use.

NOTE C. The cost of repairing freight-train cars of foreign lines waybilled as freight,
damaged in transit, should be charged to account " Loss and Damage Freight," and the
cost of repairing freight-train cars of foreign lines having trackage rights over a carrier's
line damaged in collision or wreck for which a carrier is liable should be charged to account
"Damage to Property."

See Cases 47, 56, 147, 176, 336, 456, 482.



TEXT OF CLASSIFICATION OF OPERATING EXPENSES 279

35. FREIGHT-TRAIN CARS RENEWALS

This account includes the original cost (estimated, if not known), record
value, or purchase price of all freight-train cars condemned, destroyed, or
sold, less:

(a) Amount previously charged for depreciation up to date of retirement;

(6) Scrap value of salvage or the amount received from sale of freight-
train cars retired.

NOTE A. Freight-train cars or parts thereof (such as trucks) permanently retired from
service, but held, pending disposition, should be written out of service through this account
and carried in an appropriate material account at a nominal valuation or at actual scrap
value, if determinable.

NOTE B. The term "record value" should not be interpreted to mean the value of
equipment as it stands in the capital account, unless that account represents the original
value of the equipment on hand.

See Cases 169, 170.

36. FREIGHT-TRAIN CARS DEPRECIATION

[This account includes a monthly charge of one-twelfth (fa) of per cent per annum of the.
original cost (estimated, if not known), record value, or purchase price of freight-train cars to
provide a fund for replacement when retired.]

This account includes a monthly charge representing depreciation on
freight-train cars. This monthly charge should be computed at a certain
rate per cent on the original cost (estimated, if not known), record value, or
purchase price of such freight-train cars. Charges should be made to this
account during the life of the freight-train cars, except in cases of freight-
train cars which attain to greater than a normal life ; in such a case charges
should cease when the difference between the original cost, record value,
or purchase price and the estimated scrap value shall have been charged
to this account. In case of freight-train cars prematurely retired charge
to this account should cease with the charges for the month hi which such
retirement occurs. The sum of the monthly charges during any fiscal year
should equal the estimated depreciation during that year.

Note A. When freight-train cars are prematurely retired, the value (less
salvage) not previously taken up through charges to this account should be
charged, in the accounts for the months in which retired, to Account No. 35,
" Freight-train Cars Renewals," as provided in the text therefor.

Note B. The sum of the monthly charges to this account should equal the
value lost through depreciation in respect to a particular Freight-train car, and
together with the charge to '* Freight-train Cars Renewals " and value of salvage
or amount received from sale, should provide a reserve for replacement of the
freight-train car when retired.

See Cases 48, 49.

37. ELECTRIC EQUIPMENT OF CARS REPAIRS

This account includes cost of material used and labor expended in repair-
ing and renewing motors affixed to cars, and their connections, as distinguished
from independent electric locomotives used in connection with electric power



280 RAILROAD EXPENSES

for the propulsion of trains or cars; dynamo covers, rheostats, reversing,
cut-out, and main motor switches, power boxes, motor boxes, power levers,
trolley poles, trolleys, third-rail contact appliances, wiring, inspecting, cables,
lighting arresters, pans, brush holders, and motor pans.

NOTE A. The word "repairs" as here used includes all repairs to or renewals o* parts
of electric equipment of cars commonly known as running repairs; also repairs to or renewals
of the more important or vital parts of electric equipment of cars, the necessity for which
is caused by breakage or failure while in service; also the repairs to electric equipment of
cars damaged through accident or otherwise, necessary to restore it to service; and also
renewals of important or vital parts made necessary by reason of age or wear and tear from
use.

Note B. When carriers operating electric divisions desire to subdivide this
account, appropriate accounts as prescribed in the Classification of Operating
Expenses for Electric Railways should be used.

See Case 57.



38. ELECTRIC EQUIPMENT OF CARS RENEWALS

This account includes the original cost (estimated, if not known), record
value, or purchase price of all electric equipment of cars condemned, destroyed,
or sold, less:

(a) Amount previously charged [for depreciation up to date of retire-
ment;

(6) Scrap value of salvage or the amount received from sale of electric
equipment of cars.

NOTE A. Electric equipment of cars permanently retired from service, but held,
pending disposition, should be written out of service through this account, and carried
in an appropriate material account at a nominal valuation, or at actual scrap value, if
determinable.

NOTE B. The term "record value" should not be interpreted to mean the value of
equipment as it stands in the capital account, unless that account represents the original
value of the equipment on hand.

Note C. When carriers operating electric divisions desire to subdivide this
account, appropriate accounts as prescribed in the Classification of Operating
Expenses for Electric Railways should be used.



39. ELECTRIC EQUIPMENT OF CARS DEPRECIATION

[This account includes a monthly charge of one-twelfth (T$) of per cent per annum of the
original cost (estimated, if not known), record value, or purchase price of electric equipment of
cars to provide o, fund for replacement when retired.]

This account includes a monthly charge representing depreciation on
electric equipment of cars. This monthly charge should be computed at a
certain rate per cent on the original cost (estimated, if not known), record
value, or purchase price of such electric equipment of cars. Charges should
be made to this account during the life of the electric equipment of cars,
except in cases of electric equipment of cars which attains to greater than a
normal life ; in such a case charges should cease when the difference between



TEXT OF CLASSIFICATION OF OPERATING EXPENSES 281

the original cost, record value, or purchase price and the estimated scrap
value shall have been charged to this account. In case of electric equip-
ment of cars prematurely retired charges to this account should cease with
the charges for the month in which such retirement occurs. The sum of
the monthly charges during any fiscal year should equal the estimated
depreciation during that year.

Note A. When electric equipment of cars is prematurely retired, the value
(less salvage) not previously taken up through charges to this account should
be charged, in the accounts for the months in which retired, to Account No. 38,
" Electric Equipment of Cars Renewals," as provided in the text therefor.

Note B. The sum of the monthly charges to this account should equal the
value lost through depreciation in respect to a particular electric equipment
of cars, and together with the charge to " Electric Equipment of Cars Renewals "
and value of salvage or amount received from sale, should provide a reserve for
replacement of the electric equipment of cars when retired.

See Case 49.



40. FLOATING EQUIPMENT REPAIRS

This account includes, when not chargeable to "Outside Operations:"

STEAMBOATS AND TUGBOATS. Cost of material used and labor expended
in repairing steamships, steamboats, power launches, steam lighters, ferry,
transfer, tug, and all other boats propelled by their own power (see "Note
A" under this account); also boilers, engines, masts, rigging, sails, wood
foundations, bearings for machinery, wheels, rudders, shafts, steering gear,
ventilators, electric plants, steam and hot- water fixtures, and all other parts;
furniture and fixtures of such boats, including cost of renewing machinery,
furniture, and fixtures, such as anchors, axes, barometers, beds and bedding,
binnacle lamps, block and tackle, capstan bars, carpets, chairs, charts, clocks,
compasses, copying presses, counters, desks, engine furnishings, fire buckets,
fire extinguishers, flue cleaners, gang planks, hatchets, hooks, keys, lamps
(when permanently attached to boats), life-preservers, lines, linoleum, logs
and log lines, mats, matting, mattresses, oil cans, pianos on passenger boats,
pillows, pokers, racks, railings, rugs, safes, scales, scrapers, settees, shovels,
splice bars, spyglasses, stoves and stove furniture, tables, ticket cases and
fixtures, tool boxes, tools, wrenches; payments of royalties, or for patent
rights on improved machinery. Pay and expenses of shore engineers, shore
captains, and their assistants when engaged in supervising the maintenance
of floating equipment.

The value of old material released during repairs and insurance recovered
should be credited to this account.

BARGES, CAB FLOATS, AND CANAL BOATS. Cost of material used and labor
expended in repairing barges, canal boats, car and other floats, dredges,
lighters, and scows (see "Note B" under this account); also hulls, decks,
cabins, rigging, and all other parts and furniture and fixtures of such boats,
including cost of renewing machinery, furniture, and fixtures, such as those
enumerated above.



282 RAILROAD EXPENSES

The value of old material released during repairs and insurance recovered
should be credited to this account.

NOTE A. The following floating equipment is classified as steamboats and tugboats:

Ferryboats, Steamboats, Tugboats,

Power launches, Steamships,

Power lighters, Transfer boats,

NOTE B. The following floating equipment is classified as barges, car floats, and canal
boats:



Car floats, Lighters,

Canal boats, Dredges, Scows.

NOTE C. The word "repairs" as here used includes all repairs to or renewals of minor
parts of floating equipment; also repairs to or renewals of the more important or vital
parts of floating equipment, the necessity for which is caused by breakage, failure, or
accident while in service; also the repairs to floating equipment damaged through accident
or otherwise, necessary to restore it to service; and also renewals of important or vital
parts made necessary by reason of age or wear and tear from use.

See Case 147.

41. FLOATING EQUIPMENT RENEWALS

This account includes the original cost (estimated, if not known) record
value, or purchase price of all floating equipment condemned, destroyed, or
sold, less:

(a) Amount previously charged for depreciation up to date of retirement;

(6) Scrap value of salvage or the amount received from sale of floating
equipment retired.

The cost of renewing floating equipment, the operations of which are
treated as "Outside Operations," should not be charged to this account.

NOTE A. Floating equipment permanently retired from service, but held, pending
disposition, should be written out of service through this account, and carried in an
appropriate material account at a nominal valuation or at actual scrap value, if deter-
minable.

NOTE B. The term "record value" should not be interpreted to mean the value of
equipment as it stands in the capital account, unless that account represents the original
value of the equipment on hand.

See Case 426,
42. FLOATING EQUIPMENT DEPRECIATION

[This account includes a monthly charge of one-twelfth (ft) of per cent per annum of the
original cost (estimated, if not known), record value, or purchase price of floating equipment,
to provide a fund for replacement when retired.]



Online LibraryJames Shirley EatonHandbook of railroad expenses → online text (page 25 of 52)