cost of the repair or replacement is charged. To avoid unduly affecting the charges to Operating Expenses, relatively large amounts of insurance recovered upon damaged or destroyed property which is repaired or replaced may be credited to a suspense account, to which the cost of the repair or replacement shall then be charged to the extent of the insurance credited thereto. If the property destroyed is not replaced, the insurance shall be treated as salvage and deducted from the amount chargeable to Profit and Loss Account when the property is written out of the road and equipment accounts. Insurance recovered in connection with personal injuries shall be credited to account No. 92, "Injuries and damages." Recoveries under fidelity bonds shall be credited to the account charged with the loss.*†

14.0-10 Property retired and replaced. When property is abandoned, demolished, or otherwise retired from service, and replaced, the ledger value (estimated if not known) of the property retired shall be credited to the proper road and equipment account; account No. 443, "Accrued depreciation-Road and equipment," shall be charged with the amount carried therein with respect to such property; proper account shall be taken of salvage and insurance; and the remainder, together with the expense incident to the abandonment, shall be charged to the appropriate operating expense accounts. The cost of the new property shall be charged to the proper road and equipment account.**

14.0-11 Distribution of charges for property retired and replaced. In case the amount chargeable to Operating Expenses for property retired and replaced is relatively large and its inclusion would seriously distort the expense accounts for a single year the carrier, if so authorized by the Commission, may charge the amount thereof to balance-sheet account No. 419, "Property abandoned chargeable to Operating Expenses," and distribute it thereafter in accordance with the provisions of that account to the operating expenses of succeeding years.*t

14.0-12 Property retired and not replaced. When property other than equipment (which is provided for by account No. 41, "Equipment retired") is abandoned, demolished, or otherwise retired from service and not replaced, the ledger value of the property retired shall be credited to the proper road and equipment account; account No. 443, "Accrued depreciation-Road and equipment," shall be charged with the amount carried therein with respect to such property; proper account shall be taken of salvage and insurance; and the remainder, together with the expenses incident to the retirement, shall then be charged to Profit and Loss.*†

14.0-13 Cost of work. The cost of work chargeable to the maintenance accounts includes other carriers' freight charges, inspection, contract work, assessments for maintenance, and cost of privileges in connection with the work specified in the text of the several accounts.**

14.0-14 Depreciation. Depreciation accounts in which to include monthly charges to cover depreciation of way and structures, equip

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*For statutory citation, see note to § 14.00-1.

ment, power plant buildings, and power plant equipment are provided in order that carriers may create reserves which will meet or reduce the amounts otherwise chargeable to Operating Expenses or to Profit and Loss Account to cover the cost of the renewal or retirement of property. Such depreciation charges should be upon a basis determined to be equitable according to the carrier's experience and best sources of information as to the actual accruals of current loss from depreciation. Depreciation charges with respect to property or equipment shall cease when the difference between the ledger value (estimated if not known) and the estimated scrap value shall have been credited to the depreciation reserve account. A statement of the bases used by the carrier for computing these charges shall be included in its annual report to the Commission.

Commencing July 1, 1914, carriers shall accrue depreciation on equipment (included in accounts Nos. 530 to 535), but the accrual of depreciation on way and structures, power plant buildings, and power plant and substation equipment is left optional with the carrier until such time as the Commission shall direct otherwise.

When equipment (included in accounts Nos. 530 to 535) is retired from service and proper charges for depreciation have not been made during its life, the ledger value of such equipment, less salvage and depreciation accrued to the date of retirement, shall be charged as follows: That proportion of the actual_loss from depreciation equitably assignable to the period prior to July 1, 1914, shall be charged to Profit and Loss and the remainder shall be charged to operating expense account No. 41, "Equipment retired." *†

OPERATING EXPENSE ACCOUNTS

I. WAY AND STRUCTURES

14.1 Superintendence of way and structures. This account shall include salaries and office and other expenses of officers and their assistants when directly in charge of maintenance of way and structures, including chief engineer, engineer of maintenance of way, superintendent of electric line, superintendent of buildings, architect, division engineer, roadmasters, and office and field forces; cost of repairing drafting and engineering instruments; cost of supplies used by employees whose salaries are charged to this account; and office rent, cost of repairing rented offices, cost of repairing furniture, and miscellaneous office expenses, when separate offices not in general office buildings are maintained for officers whose salaries are charged to this account.***

NOTE A: When employees designated above are engaged in work not chargeable to Way and Structures, their salaries and expenses shall be charged to the specific work on which engaged.

NOTE B: When employees designated above have supervision over other departments also, their salaries and expenses shall be apportioned equitably among the departments over which they have jurisdiction.

NOTE C: It is not intended that any portion of the expenses of general offices shall be charged to this account. The office expenses of employees designated above who have offices in general office buildings shall be included in the appropriate primary accounts under General and Miscellaneous.

In §§ 14.1 to 14.100, inclusive, the numbers to the right of the decimal point correspond with the respective account numbers in Uniform system of accounts

*For statutory citation, see note to § 14.00-1.

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for electric railways (operating expense accounts), Interstate Commerce Commission, May 28, 1914. Cross references to accounts are made by citing the account number, e. g., account No. 8, instead of the corresponding section number (§ 14.8).

14.2 Ballast. This account shall include expenses incident to the purchase and production of ballast used for maintenance; purchase price of gravel, stone, slag, cinders, sand, and other material used for ballast, including freight charges, if any; payments for gravel and quarry rights and privileges; cost of tracks and electric line in gravel pits; expenses of sinking test holes, stripping, blasting, and loading; and other expenses in connection with production of ballast.*+

NOTE A: In case of ballast produced, a clearing account may be opened in order to determine the unit of cost which is to be used in arriving at the monthly charge to Operating Expenses on account of ballast used.

NOTE B: The cost of labor delivering, unloading, and putting ballast into track shall be charged to account No. 8, "Track and roadway labor."

14.3 Ties. This account shall include the cost of cross, switch, bridge, and other ties used in repairing all tracks.*+

NOTE A: The cost of labor for unloading, distributing, and putting ties in track, and the cost of picking up and concentrating or disposing of the ties removed, shall be charged to account No. 8, "Track and roadway labor."

NOTE B: The excess of metal or concrete ties applied in place of wooden ties over the cost of replacing wooden ties shall be charged to road and equipment account No. 506, "Ties."

14.4 Rails. This account shall include the cost of rails used in repairing main and repair tracks, sidings and spurs, and tracks in tunnels, station yards, shop and other yards; on piers, wharves, track scales, inclines, bridges, trestles, and culverts; in carhouses, shops, and storehouses; and on transfer tables and turntables. Rails in plain curves shall be charged to this account and not to account No. 6, "Special work."

To this account shall be credited the value of material removed.** NOTE A: The cost of labor for unloading, distributing, and laying rails in tack, and the cost of picking up and concentrating the rails removed, shall be charged to account No. 8, "Tracks and roadway labor."

NOTE B: The excess cost of heavier or improved rails applied for renewals over the original cost of rails removed shall be charged to road and equipment account No. 507, "Rails, rail fastenings, and joints."

NOTE C: Guard rails used in connection with the renewal of special work shall be charged to account No. 6, "Special work."

14.5 Rail fastenings and joints. This account shall include the cost of rail fastenings and joints, such as fishplates, braces, tie plates, tie-rods, nuts, bolts, spikes, and welded joints, used for repairs of all tracks.

To this account shall be credited the value of material removed.** NOTE A: The cost of labor unloading, distributing, and applying rail fastenings and joints and the cost of picking up and concentrating rail fastenings and joints removed shall be charged to account No. 8, "Track and roadway labor." NOTE B: The entire cost (exclusive of carrier's own labor) of welded joints installed under contract shall be charged to this account.

NOTE C: The excess cost of heavier or improved rail fastenings and joints used for renewals over the original cost of fastenings and joints removed shall be charged to road and equipment account No. 507, "Rails, rail fastenings, and joints."

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*For statutory citation, see note to § 14.00-1.

14.6 Special work. This account shall include the cost of material used in repairing special work, including steam and street railroad crossings, crossovers, curves, frogs, run-offs, switches, contacts and wiring for automatic switches, switch stands and locks, switch mates, and turnouts.

To this account shall be credited the value of material removed.** NOTE: The cost of labor in connection with this work shall be charged to account No. 8, "Track and roadway labor."

14.7 Underground construction. This account is to be used only by railways operated by underground electric contact system or by cable. It shall include the cost of material used in repairing yokes, concrete work, manhole frames and covers, slot rails, drain pipes, pulleys, and sheaves, and other fixtures and appurtenances peculiar to underground electric or cable construction.

To this account shall be credited the value of material removed.** NOTE A: The cost of labor in connection with this work shall be charged to account No. 8, "Track and roadway labor."

NOTE B: The cost of repairing and renewing track rails, track-rail fastenings and joints, electric contact rails and insulators, and cables of cable railways shall not be charged to this account.

14.8 Track and roadway labor. This account shall include the cost of labor used in unloading, distributing, and placing ballast; relaying ties; repairing and relaying rails, rail fastenings and joints, special work, and underground construction; also labor used in grading, aligning, surfacing, and gauging tracks; repairing sewer and drain tiles and drainage catch-basins; cleaning and repairing tile and open ditches; protecting banks by retaining walls, riprap, piling, piers, dikes, or other means; patrolling, inspecting, and watching track; clearing track of weeds; removing sand, débris, and flood water from tracks; trimming trees along tracks; and other miscellaneous track and roadway labor, including wages of blacksmiths and helpers in track shops.*†

14.9 Miscellaneous track and roadway expenses. This account shall include the cost of roadway tools when chargeable to Operating Expenses; material used in repairing tools, velocipedes, hand and push cars, implements, flags, lanterns, etc., used when repairing track and roadway; materials used in weeding tracks and right of way; materials used in removing flood water from tracks; coal and supplies for track shops; material used in repair of right-of-way ditches; material for repairing catch basins for drainage purposes; and material used in repairing retaining walls, riprap, piling, piers, dikes, or other means for protecting banks; also any other material, supplies, and incidental expenses that are not properly chargeable to any of the other accounts covering maintenance of track and road

way.

To this account shall be credited the value of material removed.** 14.10 Paving. This account shall include the cost of labor and material used in repairing granite, wood, brick, macadam, asphaltum, and other paving; also cost of hauling and distributing material and of removing old material.

*For statutory citation, see note to § 14.00-1. For source citation, see note to § 14.1.

Page 281 [281]

Repairs of street paving required by municipalities in connection with roadway and track, and assessments for maintenance of paving; also payments for permission to open pavement, and cost of tearing up and replacing paving in connection with repairs shall be charged to this account.

To this account shall be credited the value of material removed.*† 14.11 Cleaning and sanding track. This account shall include the cost of labor and material used in watering, sprinkling, and oiling roadway; in cleaning, greasing, and sanding tracks; and in cleaning conduits of underground electric or cable systems; also cost of sand and of hauling, drying, and distributing same; cost of track brooms and other cleaning and sanding tools and apparatus; and cost of other supplies and expenses incident to the work.*t

NOTE A: Repairs of sprinkler and sand cars used in connection with this work shall be charged to account No. 32, "Service equipment." Repairs of harness and wagons used in connection with this work shall be charged to account No. 38, "Vehicles and horses."

NOTE B: Cost of sprinkling rendered necessary by repairs or construction of track or paving shall be charged to the proper maintenance or construction account.

This account shall include the

14.12 Removal of snow and ice. cost of labor and material used in removal of snow and ice from tracks, whether done by the company or otherwise, including cost of tools, cost of salt and delivering same in carhouses or bins, wages of men engaged in salting track and in operating snow plows, sweepers, scrapers, etc., and other supplies and expenses incident to this work. This account shall also include the wages of trainmen operating cars solely for the purpose of keeping line open, the cost of removing water caused by melting snow, cost of placing and removing portable snow fences, and rent of ground on which to place snow fences.**

NOTE: Repairs of salt cars, snow plows, sweepers, scrapers, and miscellaneous snow equipment used in connection with this work shall be charged to account No. 32, "Service equipment." Repairs of harness and wagons used in connection with this work shall be charged to account No. 38, "Vehicles and horses."

14.13 Tunnels and subways. This account shall include the cost of labor and material used in repairing tunnels and subways; cost of cleaning, painting, and whitewashing; and cost of maintenance of lighting, ventilating, and drainage systems.

To this account shall be credited the value of material removed.*+ NOTE: This account shall not include repairs of roadway, tracks, or electric feeder and contact lines through tunnels.

14.14 Elevated structures and foundations. This account is intended to be used only by companies operating an elevated railway system, and shall include the cost of labor and material used in repairing elevated structures and their foundations.

To this account shall be credited the value of material removed.** 14.15 Bridges, trestles, and culverts. This account shall include the cost of labor and material used in repairing bridges, trestles, and culverts (both substructure and superstructure), their piers, abutments, masonry, and drain pipes, and the retaining walls, riprapping, and dikes necessary to protect or strengthen them against ice, water, or

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*For statutory citation, see note to § 14.00-1.