Copyright
James Shirley Eaton.

Handbook of railroad expenses online

. (page 26 of 52)
Online LibraryJames Shirley EatonHandbook of railroad expenses → online text (page 26 of 52)
Font size
QR-code for this ebook


This account includes a monthly charge representing depreciation on
floating equipment. 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 floating equipment. Charges should be made to



TEXT OF CLASSIFICATION OF OPERATING EXPENSES 283

this account during the life of the floating equipment, except in cases of
floating equipment which attains 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 floating equipment 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 floating equipment 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. 41,
" Floating Equipment 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 floating equipment,
and together with the charge to " Floating Equipment Renewals " and value
of salvage or amount received from sale, should provide a reserve for replace*
merit of the floating equipment when retired.

The charge for depreciation on floating equipment, the operations of
which are treated as "Outside Operations," should not be charged to this
account.

See Cases 49, 426.



43. WORK EQUIPMENT REPAIRS

This account includes cost of material used (less salvage) and labor expended
in repairing, painting, and lettering work or service equipment of all classes
(see "Note A" under this account), furniture for cabin or caboose cars, and
fixtures for all work or service cars, including cost of renewing same; such as
bunks, coal boxes, coal hods, curtains, cushions, lamp fixtures, links and

pins, screens, Stoves, and fixtures; [also cost of repairing commercial cars and locomo-
tives when assigned to and in maintenance-of-way service]; changes made in [suc/i]

commercial cars to fit them for work service, and refitting them for com-
mercial service; cost of repairing floating equipment used in maintenance
or construction of a carrier's property, such as floating pile drivers, dredges,
scows, etc. ; cost of supervision, cutting up condemned work cars, and repair-
ing cars of foreign lines damaged on the line while in a carrier's work service;
material used by car inspectors and car repair men while engaged in inspecting
and making light repairs; small hand tools used exclusively in inspecting
and repairing work equipment; expenses of fitting cars with devices for
special maintenance-of-way work; traveling expenses of employees whose
pay is chargeable to this account; payments of royalties or for patent rights
on brakes, brake fixtures, and other appliances used on work or service equip-
ment; and payment for cars of foreign lines destroyed on the line while in a
carrier's work service; also proportion of shop expenses as provided in Note
following account "Other Expenses" under head of "Maintenance of Equip-
ment."



284 EAILROAD 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 equipment is classified as work equipment:

Ballast, Outfit, Steam shovels

Ballast, unloader cars, Painters, Steam wrecking derricks

Boarding, Pile drivers, Supply,

Bridge, Rail saw, Sweeper,

Camp, Scale test, Tool,

Cinder, Snow dozer, Tool and block,

Derrick, Snow drags, Water,

Ditching, Snbwplows (not attached to Weed burner,

Dump, locomotives, but moved by Wrecking.

Grading, them.)

Gravel, Sprinkling,

NOTE B. The word "repairs" as here used includes all repairs to or renewals of parts
of work equipment commonly known as running repairs; also repairs or renewals of the
more important or vital parts of work equipment, the necessity for which is caused by
breakage or failure while in service; also the repairs to work 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.

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

See Cases 47, 318, 339, 481, 482.

44. WORK EQUIPMENT RENEWALS

This account includes the original cost (estimated, if not known), record
value, or purchase price of all work 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 work
equipment retired.

NOTE. 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 318, 339.

45. WORK EQUIPMENT DEPRECIATION

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

This account includes a monthly charge representing depreciation on
work equipment. 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 work equipment. Charges should be made to
this account during the life of the work equipment, except in cases of work



TEXT OF CLASSIFICATION OF OPERATING EXPENSES 285

equipment which attains 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 work equipment prematurely retired charges 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 work equipment 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. 44, " Work Equip-
mentRenewals," 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 work equipment, and
together with the charge to " Work Equipment Renewals " and value of salvage
or amount received from sale, should provide a reserve for replacement of the
work equipment when retired.

See Cases 49, 339.

46. SHOP MACHINERY AND TOOLS

This account includes:

REPAIRS. Cost of material used, and labor expended in repairing tools
and machinery in enginehouses and at locomotive and car shops and foun-
dries, and in shops of the bridges and buildings department, including sta-
tionary engines and boilers for furnishing power; scaffolds, shafting, belting,
and other appliances for running machinery, cranes, hoists, (power and hand)
drop tables, jacks, and other appliances used in connection therewith; also
in repairing furnaces, forges, hydraulic and other portable jacks, portable
scales, and sewing machines used in shops. Cost of repairing electric power
plants (and parts thereof) employed exclusively in connection with the
operation of machinery in shops. Cost of repairing heating boilers should
be charged to account " Buildings, Fixtures, and Grounds."

RENEWALS. Cost of new tools and machinery (less salvage), used in
enginehouses and at locomotive and car shops and foundries, and in shops of
the bridges and buildings department, including stationary engines and
boilers for furnishing power; scaffolds, shafting, belting, and other appliances
for running machinery, cranes, hoists, (power and hand) drop tables, jacks
and other appliances used in connection therewith; also furnaces, forges,
hydraulic and other portable jacks, portable scales and sewing machines used
in shops. Cost of renewing electric power plants (and parts thereof) employed
exclusively in connection with the operation of machinery in shops. Cost
of renewing heating boilers should be charged to account "Buildings, Fixtures,
and Grounds."

Note. 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 Cases 58, 59, 178, 180, 311.



286 RAILROAD EXPENSES

47. POWER PLANT EQUIPMENT

This account includes:

STEAM AND WATER PLANT. Cost of materials used (less salvage) and
labor expended in repairing and renewing steam and water plant equipment,
including engines and engine parts, appliances, and fixtures; belts, belt
tighteners and fixtures; receivers, lubricators, and oiling devices; shafting,
clutches, cranes, hoists, and other engine-room appliances, boilers, boiler
fittings, and appliances, furnaces, economizers, stacks, mechanical draft
machinery, pumps, feed-water heaters, purifiers, tanks, condensers, coal and
ash conveying machinery, mechanical stokers, and other boiler-room appli-
ances; piping and steam fitting, including valves, separators, water and
sewer connections, and water meters.

ELECTRIC PLANT. Cost of materials used and labor expended in repairing
and renewing all electric equipment within the power house (not including
the method of transmission of power beyond the power house), including
generators and generator parts, dynamos, switchboards, cables, and feeder
terminals, and wiring in connection therewith; storage batteries, transformers,
boosters, rheostats, circuit breakers, meters, and other electric equipment.

Note. This account includes only the cost of repairing and renewing equip-
ment of plants, used for furnishing power for the propulsion of electric loco-
motives, cars, or trains.

See Cases 58, 59, 178.

48. INJURIES TO PERSONS

This account includes all expenses incident to injuries to persons when
caused directly in connection with maintenance of equipment; proportion
of salaries and expenses of physicians and surgeons, expenses of undertakers,
nursing and hospital attendance, medical and surgical supplies, artificial
limbs, funeral expenses, railway and carriage fares for conveying injured
persons and attendance; also proportion of pay and expenses of claim
adjusters and their clerks, and pay and expenses of employees and others
called in consultation in relation to the adjustment of claims coming under
this head. Pay and expenses of employees and others while attending
coroner's inquests or engaged as witnesses in law suits in connection with
personal-injury cases.

NOTE A. [Witness fees and other expenses.] Expenses not otherwise provided for,

in connection with the conduct of suits should be charged to account "Law Expenses,"
but the amount of final judgments, including plaintiff's court costs, should be charged to
this account.

NOTE B. When contributions are made to hospitals, the total thereof should be dis-
tributed to the several "Injuries to Persons" accounts as follows: 25 per cent to "Mainte-
nance of Way and Structures," 25 per cent to "Maintenance of Equipment," and 50 per
cent to "Transportation Expenses."

NOTE C. The pay and expenses of claim adjusters, clerks, chief surgeons, and others
whose pay can not be actually allocated to any case should be divided equally between
personal injury and other claims over which they have jurisdiction.

See Cases 310, 419, 526, 532.



TEXT OF CLASSIFICATION OF OPERATING EXPENSES 287






49. STATIONERY AND PRINTING

This account includes the cost of all stationery, stationery supplies,
printing, books, and blank forms used in connection with maintenance of
equipment. (Dictionaries, periodicals, technical books, etc., should be
charged to account "Superintendence.")

The following is a list of the more important items chargeable to this
account:

Adding machines,
Addressographs and sup-
plies,

Arm rests.
Binders,
Blank books,
Blank cards,
Blank forms,
Blank paper,
Blank tablets,
Blotters,
Blotting paper,
Blue print paper
Bristol board,

Calculating machines,
Calendars,
Caligraphs,
Carbon paper.
Cardboard,
Cards,
Circulars,
Computing tables,
Copy (impression) books,
Copying brushes,
Copying presses,
Crayons,
Cyclostyles,

Dating stamps and ribbons,
Drawing paper,
Duplicators,
Electric pens,
Envelopes,

Erasers, rubber and steel,
Eyelets,
Eyelet punches,
Forms,

[INSURANCE]*

50. OTHER EXPENSES

This account includes all expenses in connection with maintenance of
equipment not properly chargeable to other "Maintenance of Equipment"
accounts.

EXPLANATORY NOTE CLEARING ACCOUNT "SHOP EXPENSES "

It is recognized that costs incident to maintenance of equipment other than those
enumerated herein not chargeable directly to any particular account provided, will be
incurred, such as heating, lighting, water, watchmen, and incidentals. To provide for
the distribution of such costs to proper expense accounts, a clearing account called "Shop
Expenses" should be opened, to which these items and other unassignable items of expense

* This account is eliminated, cost of all insurance to be charged to primary account
No. 110, "Insurance," under general account "General Expenses."



Glass pens,

Hektographs,

Indexes,

Ink for writing and draw-
ing,

Ink stands,

Invoice books,
.Legal-cap paper,

Letter paper,

Manifold paper,

Manifold pens,

Mimeographs

Mucilage,

Mucilage brushes,

Neostyles,

Note paper,

Notices,

Numbering stamps,

Oil paper,

Orders,

Paper,

Paper baskets,

Paper clips.

Paper cutters,

Paper fasteners,

Paper files,

Paper weights,

Papyrographs,

Parchment paper,

Pencils, for writing and draw-
ing,

Pencil sharpeners,

Penholders,

Penracks,

Pens, for writing and draw-
ing,



Pins,

Postage,

Printed cars,

Printed tablets,

Punches (not conductors' or

baggagemen's),
Rubber bands,
Rubber stamps,
Rulers,
Ruling pens,
Scrap books,
Sealing wax,
Seals,
Shears,

Shipping tags,
Shorthand notebooks,
Sponges,
Sponge cups,
Stamps, impression,
Stylographs,
Tablets,
Tape,

Telegraph blanks,
Tissue (impression) paper,
Tracing cloth,
Tracing paper,
Twine,

Typewriters and ribbons,
Waste baskets,
Water colors,
Water holders,
Wage tables,
Wrapping paper,
Wringers for copying presses.



288 BAILROAD EXPENSES

at shops, enginehouses, repair tracks, and other'places at which mechanical work is done
should be charged. Such shop expenses should be apportioned among the various accounts
affected on the basis of the amount of distributed labor charged to those accounts. The
basis of distribution should be the relative proportion which the total amount of charges
to "Shop Expenses" bears to the total of the distributed labor.

To avoid monthly fluctuations in the percentage of shop expenses to the total of dis-
tributed labor, carriers will be permitted to make the monthly apportionment on the basis
of a fixed percentage for the fiscal year, provided the "Shop Expenses" account is adjusted
and closed out at the end of that year.

The expenses above referred to are as follows:

HEATING. Cost of fuel, including freight charges and handling, if any, used for heat-
ing shops and shop offices, repair tracks, and other places at which mechanical work is done,
watchmen's and gate keepers' boxes, and inspectors' shanties.

LIGHTING. Cost of electric current, gas, torches, lamp burners, lamp chimneys, lamps
when not permanently attached to buildings, oil, incandescent lamps and carbons, and
other material used for lighting shops and shop offices, repair tracks, and other places at
which mechanical work is done; and cost of material used and labor expended in operating
electric light plants and repairing electric light lamps at shops.

WATER. Cost of water used in shops and shop offices, repair tracks, and other places
at which mechanical work is done.

Power. Cost of fuel, including freight charges and handling, used in oper-
ating steam and electric power plants at shops and other places at which mechan-
ical work is done; oil, grease, waste, and other material used in the operation of
such power plants; pay of stationary engineers, firemen, electricians, coal handlers
and other employees; carbon brushes, fuses, lamps, picks, pokers, scuttles,
shovels, and other small tools and supplies; cost of water and power purchased.

WATCHMEN. Pay of watchmen, gate keepers, and policemen at shops, repair tracks,
and other places at which mechanical work is done.

INCIDENTALS. Pay of employees while attending fires and fire drills; cost of supplies
for test rooms and laboratories incident to shop work, ice for shops, watchmen's uniforms,
clocks, and call boxes, removing snow and ice from transfer tables and shop yards; traveling
expenses not chargeable to other accounts; cost of cleaning privy vaults; oil, grease, waste,
and other material used in lubricating shop machinery and tools; horses and horse keep,
and repairing wagons and harness used in connection with shops. Cost of supplies and
small hand tools used by mechanics on miscellaneous work and soon worn out, and pay
of employees while making, repairing, or having charge of same; pay of shop foremen,
assistant foremen, clerks, timekeepers, and shop accountants, stationary engineers and
firemen, sweepers, cleaners, roustabouts, and other unskilled laborers employed in general
work in and about shops and shop grounds; cost of fuel for forges, fuel, stores, and sup-
plies; and other undistributed shop expenses; all expenses of switching locomotives, includ-
ing wages, repairs, fuel, and supplies, when exclusively assigned to switching service at
shops. (When switching at shops is performed by locomotives in regular switching service,
all expenses of such switching should be charged to appropriate "Maintenance" and
"Transportation" accounts.)

NOTE. When shops, shop offices, repair tracks, and other places at which mechanical
work is done, are supplied with heat from boilers used for running machinery, or with heat
or light from plants used for heating, lighting, or other purposes, a proportion of the cost
of such heat or light should be charged to this account on the basis of the service per-
formed.

The following is a list of the more important supplies and small tools used
in shop work:

Acid, Bits, Brushes, whitewash,

Adze handles, Bluestone, Brushes, window,

Adzes, Bone, granulated, Buckets,

Ammonia, Borax, Carpenter tools furnished

Auger bits, Bottles, apprentices,

Auger handles, Braces, Casehardening,

Augers, Brooms, Cement (belt),

Ax handles, Brushes, dust, Chalk,

Axes, Brushes, oil, Chalk lines,

Basins, Brushes, paint. Chamois skins,

Bath brick, Brushes, scrub, Charcoal,

Battery brushes, Brushes, sweeping, Clamps, hand,

Beeswax, * Brushes, varnish, Coal-pick handles,

Bell cord, Brushes, wall, Coal picks,



TEXT OF CLASSIFICATION OF OPERATING EXPENSES 289



Compound for B. S. hamrn

Compound for welding,

Corks,

Cosmic (to prevent rust) ,

Crayon,

Cushion beaters,

Ditching lines,

Drinking cups,

Drinking glasses,

Dustpans,

Emery,

Emery boxes,

Emery cloth,

Emery paper,

Faucets,

File brushes,

File cards,

File handles,

Files,

Fire hooks (stationary

boilers),
Fire shovels (stationary

boilers) ,
Flags,

Fork handles,

Forks, Polish, Tool steel, for small hand

Forks, coke,

Flannel, canton,

Funnels,

Gimlets,

Glue,

Gluepots,

Glycerine,

Graphite,

Grinding compound,

Ground glass,

Hack-saw blades,

Hammers,

Hammers, babbitt,

Hand leathers,

Handles,

EXPLANATORY NOTE CLEARING ACCOUNT " STORE EXPENSES"

Where the words "Cost of Material" appear herein it is understood that they cover
not only the cost of the material, but foreign roads' freight charges and the cost of inspec-
tion. Credit should be given for the value of the material removed, if any.

STORE EXPENSES. A memorandum account called "Store Expenses" should be opened,
to which should be charged the cost of purchasing, handling, storing material in and distrib-
uting it from the company's storehouses, including the pay of officers and employees
in the purchasing and store departments, and their traveling, office, and other expenses.
The total amount charged to this account, representing the "Storehouse Expense," should
be apportioned on the value of the material issued from the store department, and the
amount representing the "Purchasing Department" expenses should be apportioned on
the value of the material issued which was purchased by that department.

To avoid monthly fluctuations in the percentage of store expenses to the value of material
purchased or issued, carriers will be permitted to make a monthly apportionment on the
basis of a fixed percentage for the fiscal year, provided the "Store Expenses" account is
adjusted and closed out at the end of that year.

When a number of men are employed in the purchasing or inspecting of a single class
of material, such as ties, their pay and expenses should be added to the cost of that materia'
and not included in this "Store Expenses" account.

Additional Clearing Accounts Authorized:

For " Studies " by the Engineering Department. See Case 6.

For Stationer's expenses. See Case 154.

For Power Plant expenses. See Cases 178 and 180.

See Case 337.



rs, Hatchets,


Scoops,


Hoes,


Screwdrivers,


Hydraulic-jack compound,


Screwdrivers, ratchet,


Keel,


Screws,


Lampblack,


Shellac,


Lead,


Shovels,


Lead, red,


Slates,


Matlets,


Slatepencils,
Sledges,


Marking brushes,


Soap,


Marking pots,
Measures, liquid,


Soda,
Solder,


Metallic tapes,


Soldering fluid,


Mineral paste,


Spelter solder,


Mops,
Mop handles,


Spigots (oil barrels),
Spirit levels,


Muslin,


Spirit-level vials,


Oil cans,
Oilstones,


Sponges,
Sprinkling cans,


Padlocks,


Squares,


Paint pots,
Picks,


Squirts (lubricating),
Stencil brushes,


Pipe-joint grease,
Pliers,
Plumbago,
Polish,


Tacks,
Tapelines,
Tin cups,
Tool steel, for small


Polish, stove,


tools,


Potash,


Tripoli,


Prisms,


Trucks,


Rail cutters,


Twine,


Rakes,


Wash basins,


Rasps,


Wheelbarrows,


Ratchet braces,


Whetstones,


Resin


White lead,


Rope,


Whiting,


Rules,


Window cloths,


Sal ammoniac,


Wire,


Sandpaper,


Wire brushes,


Sand soap,


Wrenches, all kinds,


Saw blades,


Zinc cakes,


Saws, hand,


Zincs.



290 RAILROAD EXPENSES

51. MAINTAINING JOINT EQUIPMENT AT TERMINALS DR.

This account includes a carrier's proportion of costs to maintain equip-
ment used for the operation of joint terminals maintained by other companies.

NOTE. The purpose of this account is to show the amounts accruing against a carrier
for its proportion of the expense of maintaining joint equipment at terminals maintained
by other companies but in the joint use of which a carrier participates. The bill rendered
by any creditor against a debtor for the latter's proportion of expense of operation of joint
facilities should show the distribution of the total charge among the general accounts
as made by the creditor, and such distribution should be adhered to by the debtor.

See Cases 46, S55, 856.

[EQUIPMENT BORROWED DR.] *

52. MAINTAINING JOINT EQUIPMENT AT TERMINALS CR.

This account includes the proportion of costs to maintain equipment used
for the operation of joint terminals maintained by a carrier chargeable to
other companies.

NOTE. The purpose of this account is to show the amounts accruing in favor of a
carrier against other companies for their proportion of the expense of maintaining joint
equipment at terminals maintained by a carrier, but in the joint use of which other com-
panies participate. The bill rendered by any creditor against a debtor for the latter's



Online LibraryJames Shirley EatonHandbook of railroad expenses → online text (page 26 of 52)