Copyright
James Shirley Eaton.

Handbook of railroad expenses online

. (page 29 of 52)
Online LibraryJames Shirley EatonHandbook of railroad expenses → online text (page 29 of 52)
Font size
QR-code for this ebook


stables; cost of replacing stock; and feeding and shoeing stock.

WAGONS AND HARNESS. Cost of repairing and renewing wagons, harness,
and automobiles used in express service.

97. STATIONERY AND PRINTING

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



TEXT OF CLASSIFICATION OF OPERATING EXPENSES 309



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



Adding machines,
Addressographs and sup-


Eyelets,
Forms,


Postage,
Printed cards,


plies,


Fuel tickers,


Printed tablets,


Arm rests,
Baggage checks, printed,


Glass pens,
Hektographs,


Profile books, and paper,
Punches (not conductors' or


Bills of lading,


Indexes,


baggagemen's),


Binders,


Ink, for writing and draw-


Rubber bands,


Blank books,


ing,


Rubber stamps,


Blank cards,


Inkstands,


Rulers,


Blank forms,


Invoice books,


Ruling pens.


Blank paper,
Blank tablets,


Legal-cap paper,
Letter paper,


Scrapbooks,
Sealing wax,


Blotters,


Manifold paper,


Seals,


Blotting paper,


Manifold pens,


Shears,


Blue print paper,


Mimeographs,


Shipping tags,


Books for field notes,


Mucilage,


Shorthand notebooks,


Bristol board,


Mucilage brushes,


Sponges,


Calculating machines,


Neostyles,


Sponge cups,


Calendars,


Note paper,


Stamps, impression,


Caligraphs,


Notices,


Stylographs,


Carbon paper,


Numbering stamps,


Tablets,


Cardboard,


Oil paper,


Tape,


Cards,


Orders,


Telegraph blanks,


Circulars,


Paper,


Tickets,


Computing tables,
Copy (impression) books,
Copying brushes,
Copying presses,


Paper baskets,
Paper clips,
Paper cutters,
Paper fasteners,


Ticket stamps,
Time-tables,
Tissue (impression) paper,
Tracing cloth,


Crayons,


Paper files,


Tracing paper,


Cross-section books,


Paper weights,


Twine,


Cross-section paper,
Cyclostyles,
Dating stamps and ribbons,


. Papyrographs, Typewriters and ribbons,
Parchment paper, Wage tables,
Pencils for writing and draw-Wastebaskets,


Drawing paper,


ing,


Water colors,


Delivery tickets,


Pencil sharpeners,


Water holders,


Duplicators,


Penholders,


Waybills,


Electric pens,


Penracks,


Wrapping paper,


Envelopes,


Pens, for writing and draw-


Wringers for copying presses.


Erasers, rubber and steel,


ing,




Eyelet punches,


Pins?




See Cases 155, 200, 341,


454.




[INSURANCE]*






98. OTHER EXPENSES






This account includes all expense in connection with transportation not
properly chargeable to other "Transportation Expenses" accounts.

See Cases 77, 79, 80, 206, 218, 276, 461, 213, 319, 842, 343, 844, 400, 453, 511, SIS'
522, 680, 597, 608, 612, 613, 614, 615, 623.

99. LOSS AND DAMAGE FREIGHT

This account includes payments for loss, damage, delays, or destruction
of freight, locomotives, or cars when waybilled as freight ([but not] including
company's material), parcels, or express intrusted to a carrier for transpor-

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



310 RAILROAD EXPENSES

tation, including live stock received for shipment, and all expenses directly
incident thereto; freight in transit lost overboard from lighters (less insurance
[recovered] and [net] amount recovered, [received] from sale of unclaimed and
damaged freight); cost of repacking and boxing damaged merchandise and
other property; pay and expenses of employees or others engaged as adjusters
and in detecting thieves; and services and expenses of employees or others
while engaged as witnesses in law suits in connection with loss and damage
cases. Freight charges paid other carriers on loss or damaged shipments.

NOTE A. 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, includ-
ing plaintiffs' court costs, should be charged to this account.

Note B. The pay and expenses of claim adjusters, clerks, and others whose
pay cannot be actually allocated to any case, should be divided equally among
personal injury and other claims over which they have jurisdiction.

See Cases 8, 155, 279, 298, 588, 607, 626, 627, 638.

100. LOSS AND DAMAGE BAGGAGE

This account includes payments for loss, damage, or destruction of
baggage and other personal property, including clothing carried as baggage,
damage to clothing worn by persons not in accident; and all expenses directly
incident thereto, including services and expenses of employees or others while
engaged as witnesses in law suits in connection with cases involving loss
or damage to baggage, less insurance recovered and net amount received
from sale of unclaimed and damaged baggage.

NOTE A. Expenses, not otherwise provided for, in connection with the conduct of
suits should be charged to account " Law Expenses," but the amount of the final judgments
including plaintiffs' court costs, should be charged to this account.

Note B. The pay and expenses of claim adjusters, clerks, and others whose
pay cannot be actually allocated to any case should be divided equally among
personal injury and other claims over which they have jurisdiction.

See Case 386.

101. DAMAGE TO PROPERTY

This account includes payments for damages to or destruction of crops,
buildings, lands, fences, vehicles, or any other property (except freight and
baggage intrusted for transportation and except also stock as provided
for under account "Damage to Stock on Right of Way"), whether occasioned
by fire, collision, or otherwise, less insurance recovered. Payments for
damages to locomotives or cars and the property therein of another company
having trackage rights caused by collision of trains; and cost of repairing
damage to another railway company's roadbed, track, or equipment, caused
by collisions at grade crossings; detecting thieves, detaining vessels at
drawbridges and payment of fines and costs on account of blocking street
crossings; also pay and expenses of employees and other witnesses in suits.

NOTE A. Expenses, not otherwise provided for, in connection with the conduct of
suits should be charged to account "Law Expenses," but the amount of final judgment,
including plaintiffs' court costs, should be charged to this account.



NOTE B. The pay and expenses of claim adjusters, clerks, and others, whose pay
mot be actually allocated to any case, should be divf "
injury and other claims over which they have jurisdiction.



cannot be actually allocated to any case, should be divided equally between personal
ury and other claims over which they have
See Cases 38, 314, 317, 392, 399, 471, 582.



TEXT OF CLASSIFICATION OF OPERATING EXPENSES 311

102. DAMAGE TO STOCK ON RIGHT OF WAY

This account includes payments for cattle and other live stock killed or
injured while crossing or trespassing on the right of way; cost of removing
and burying same; pay and expenses of stock claim agents; pay and expenses
of employees and other witnesses in suits.

NOTE A. 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 plaintiffs' court costs, should be charged to this account.

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

See Cases 396, 532.

103. INJURIES TO PERSONS

This account includes all expenses incident to injuries to persons when
caused directly in connection with transportation; 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
attendants; 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 coroners' inquests or
engaged as witnesses in law suits in connection with personal injury cases.

NOTE A. 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 plaintiffs' 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 "Main-
tenance 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, and others whose pay
cannot be actually allocated to any case should be divided equally between personal
injury and other claims over which they have jurisdiction.

See Cases 34, 35, 78, 79, 155, 164, 165, 310, 364, 386, 419, 526, 532.

104. OPERATING JOINT TRACKS AND FACILITIES DR.

This account includes a earner's proportion of transportation expenses
incurred in the use of joint tracks, interlockers, and other facilities (except
as provided for in account " Operating Joint Yards and Terminals Dr."),
operated 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 operating joint tracks and facilities operated 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 116, 117, 120, 121, 268, 272, 275, 283, 492.

105. OPERATING JOINT TRACKS AND FACILITIES CR.

This account includes the proportion of transportation expenses incurred



312 RAILROAD EXPENSES

in, [/orj the use of joint tracks, interlockers, and other facilities (except as
provided for hi account " Operating Joint Yards and Terminals Dr."),
operated by a carrier chargeable to other [companies,] carriers.

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 operating joint tracks and
facilities operated by a carrier but in the joint use of which other companies participate.
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 116, 117, 120, 121, 268, 272, 275, 283, 492.

V. GENERAL EXPENSES
106. SALARIES AND EXPENSES OF GENERAL OFFICERS

This account includes:

SALARIES. Pay of chairman of board, president, vice-president, assistant
to the president, assistant to vice-president, treasurer, assistant treasurer,
local treasurer, assistant to the treasurer, secretary, assistant secretaries,
treasurers and secretaries of branch lines, registrar of stock, registrar of bonds,
transfer agent, comptroller, assistant comptroller, assistant to the comp-
troller, general auditor, auditor, assistant auditor, and all subordinate officers
of the accounting department, freight claim agent, assistant freight claim
agent, general accountant, real estate agent, assistant real estate agent, and
tax commissioner; and all other general officers not otherwise provided for;
salaries and fees of receivers. Commissions paid to land and tax commission-
ers in lieu of salaries.

EXPENSES. This account includes traveling and other expenses of officers
named above, and supplies for special cars while used by them, and cost of
running special trains for them; membership fees of general officers in rail-
way and other associations.

NOTE A. When an officer's duties are restricted to an individual department, his
salary and expenses should be charged to the individual department under account "Super-*
intendence" or account "Law Expenses."

NOTE B. When officers and others, above enumerated, have supervision over other
departments also, their salaries and expenses should be apportioned equally between the
departments over which they have jurisdiction.

NOTE C. The pay and expenses of purchasing agent, assistant purchasing agent,
asistant to purchasing agent, general storekeeper, division storekeeper, and their clerks
should be charged to "Material " account through clearing account Store Expenses." ^

See Cases 82, 255, 516.

107. SALARIES AND EXPENSES OF CLERKS AND ATTENDANTS

This account includes:

CLERKS. Pay of chief accountants, chief and other clerks of the officers
specified in account " Salaries and Expenses of General Officers," cashiers,
paymasters and their clerks, traveling auditors, traveling accountants, special
agents, inspectors and route agents of the accounting department, and post-
master, mail clerks, and assistants in general office.

ATTENDANTS. Pay of superintendent and assistant superintendent of
general office building, bank messengers, ushers in general offices, pumpmen,



TEXT OF CLASSIFICATION OF OPERATING EXPENSES 313

watchmen, messengers, service-wagon drivers, stablemen, janitors, cleaners,
elevator conductors, engineers and firemen of stationary engines, telephone
operators and other employees in connection with general offices not pro-
vided for elsewhere; also pay of porters, cooks, etc., in general office buildings
and on special cars while in use by general officers and general office em-
ployees.

EXPENSES. This account includes traveling and other expenses of
employees named above and supplies for special cars while used by them;
also cost of running special trains for them.
See Cases 516, 533.

108. GENERAL OFFICE SUPPLIES AND EXPENSES

This account includes rent, repairs of rented buildings and fixtures
therein, alterations of partitions and fixtures; furniture, and all expenses
and supplies incident to the heating, lighting, and care of general offices;
cost of service automobiles, wagons, and harness, and expenses of repairing;
cost of horses and horse keep, and of atlases, directories, and other books
of reference for general office use; telephone service, express charges, tele-
graph and cable tolls; payments for local messenger service, subscriptions
for newspapers and periodicals; premiums on fidelity bonds of general office
employees.

See Cases 51 S, 534-

109. LAW EXPENSES

This account includes pay and expenses of vice-president and assistants
when directly in charge of the law department, all counsel, solicitors, and
attorneys, their clerks and attendants, and expenses of their offices; cost
of law books, printing briefs, legal forms, testimony, reports, etc.; fees and
retainers for service of attorneys not regular employees of a carrier; pay-
ments to arbitrators for the settlement of disputed questions; costs of suits
and payments of special fees, notarial fees, and witness fees not provided for
elsewhere; expenses connected with taking depositions, and all law and
court expenses not provided for elsewhere. Cost of membership in asso-
ciations the object of which is to protect roads in respect to litigation con-
cerning the use of patents.

See Cases 287, 310, 345, 607, 617.

110. INSURANCE

This account includes all premiums made or paid by a* carrier to its
insurance fund, and premiums (except reinsurance premiums) paid by it to
insurance companies, for insuring buildings and other structures, equip-
ment of all classes, other property, [or] and persons against loss, damage,

Or injury by fire, accident, Or Other causes, [when such loss, damage, or injury would
otherwise be chargeable to "General Expenses."]

NOTE A. The premiums paid by a carrier to its insurance fund should be credited on



314



RAILROAD EXPENSES



its books to an "Insurance Fund" account, to which the amount of all claims for damages
to the property covered by its insurance should be charged. To such account should
be charged all reinsurance premiums paid insurance companies, and to it should be credited
all amounts recovered from insurance companies for damage to property reinsured by
them.

NOTE B. Appropriations made by a carrier to its insurance fund through Income
Account should be credited directly to its "Insurance Fund" account.

See Cases 31, 181, 182, 629.

111. RELIEF DEPARTMENT EXPENSES

This account includes all salaries and expenses incurred by a carrier com-
pany in connection with operating relief departments; also contributions
made by a carrier to such department.

See Case 419.

112. PENSIONS

This account includes all pensions paid to retired employees and expenses
in connection therewith.
See Cases 208, 302.



113. STATIONERY AND PRINTING

This account includes cost of printing annual reports, blank books, blank
forms, contracts, leases, bonds, stock certificates, passes: also postage, paper,
stationery, and stationery supplies used only in general offices and not charge-
able to other accounts. It includes cost of all stationery and printing of the
law department, except cost of printing briefs, legal forms, testimony, reports,
etc.

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,

Eyelet punches,

Eyelets,

Forms,

Glass pens,

Hecktographs,

Indexes,

Ink, for writing and drawing,

Inkstands,

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,



TEXT OF CLASSIFICATION OF OPERATING EXPENSES 313

Postage, Seals, Tissue (impression) paper,

Printed cards, Shears, Tracing cloth,

Printed tablets, Shipping tags, Tracing paper,

Punches (not conductors' orShorthand notebooks, Twine,

baggagemen's) , Sponge cups, Typewriters and ribbons,

Rubber bands, Sponges, Wage tables,

Rubber stamps, Stamps, impression, Wastebaskets,

Rulers, Stylographs, Water colors,

Ruling pens, Tablets, Water holders,

Scrapbooks, Tape, Wrapping paper,

Sealing wax, Telegraph blanks, Wringers for copying presses.

114. OTHER EXPENSES

This account includes incidental expenses only that is, such expenses in
connection with "General Expenses" as are not properly chargeable t any
of the foregoing accounts; cost of publishing notices of stockholders' meet-
ings, of election of directors, annual reports in newspapers, of dividends
declared, and of other corporate and financial notices of a general character;
fees and expenses paid to directors; also contribution to funds on account
of catastrophes, epidemics, etc. Donations to local fire departments; cost of
exchange on checks cashed or deposited and drafts bought; cost of draping
stations.

See Cases 113, 207, 313, 347, 401, 448, 346, 591, 613, 62e,

115. GENERAL ADMINISTRATION JOINT TRACKS, YARDS,
AND TERMINALS DR.

This account includes a carrier's proportion of "General Expenses"
incident to maintaining and operating joint tracks, yards, terminals, and
other facilities used jointly, operated 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 general administration of joint tracks, yards, and
terminals administered by other companies but in the joint use of which a carrier par-
ticipates. The bill rendered by any creditor against a debtor for the latter's proportion
of expense of operation of joint facilities should ehqw 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 285, 629.

116. GENERAL ADMINISTRATION JOINT TRACKS, YARDS,
AND TERMINALS CR.

This account includes the proportion of "General Expenses" incident to
maintaining and operating joint tracks, yards, terminals, and other facilities
used jointly, operated 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 general administra-
tion of joint tracks, yards, and terminals administered by a carrier but in the joint use
of which other companies participate. The bill rendered by any creditor against a debtor
for the latter's proportion of expense of operation of joint facilities should show the dis-
tribution 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 285, 629.



CLASSIFICATION OF OUTSIDE OPERATIONS



ABRIDGED.



INTRODUCTORY LETTER.



INTERSTATE COMMERCE COMMISSION,

DIVISION OP STATISTICS AXD ACCOUNTS,

Washington, June 15, 1908.

To CARRIERS:

Outside operations are facilities operated or services rendered by a rail-
way other than those incidental to transportation by rail, the revenues and
expenses of which, if included in the carrier's accounts dealing with trans-
portation by rail, would impair the significance of statistics prepared from
such accounts. Miscellaneous receipts and expenditures, when no service is
performed, should not be treated as outside operations.

The purpose of these accounts is to segregate from the accounts of trans-
portation by rail the revenues and expenses of all services not necessarily
incident to such transportation and not necessarily rendered by all carriers
operating under similar conditions. ' l Transportation by rail ' ' includes
the receipt, transportation, and delivery of traffic, such storage of freight
as is necessary to the operation of the railway, all special facilities neces-
sary for the handling of special classes of traffic, such as coal and ore
docks, coal transfers, and facilities for the receipt and delivery of live stock,
and such car ferries as are actual substitutes for bridges and tunnels. It
does not include local collection and delivery (except switching), or trans-
portation by water, except car ferries as above provided.

This classification is to be used by carrier companies subject to the act
to regulate commerce (including switching and terminal companies) con-
ducting outside operations in addition to furnishing transportation by rail.
It is not intended to cover operations similar to those herein enumerated
which are conducted by separately incorporated companies other than rail-
way companies, even though the ownership or control of such separately
incorporated companies be vested in a carrier by rail.

316



CLASSIFICATION OF OUTSIDE OPERATIONS 317

When a carrier operates two or more outside operations of the same
class, separate accounts may be kept for each, at the carrier's option.

The rule which should govern in determining what items of expenses
should be charged to outside operations is that the rail expense accounts
should show the full and true cost of conducting transportation by rail,
even though such disposition results in an incomplete or partial state-
ment of the cost of conducting the outside operation. No charge should
be made to outside operations if the effect of such charge would be to
relieve the rail operation of an expense that would be charged against
it if no outside service were operated. The pay of officers exercising



Online LibraryJames Shirley EatonHandbook of railroad expenses → online text (page 29 of 52)