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Delete notes following §18 of Act, and add the following:

Note.-See §24, increasing mumber of Commissioners, §20(10), employment of special agents or examiners.

Effective Dec. 16, 1967, compensation of members of the Commission is determined under Chapter 11, Title 2, USC, through the Commission on Executive, Legislative, and Judicial Salaries. Upon recommendation of the President of the United States, the anmal rate of basic compensation of the Commissioners after Feb. 14, 1969, is $38,000, and that of the Chairman of the Commission is $40,000. See note following section 358 of Title 2, usc.

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Sec. 20 (3)

"(3) (a) The Commission shall, not later than June 30, 1977, issue Regulations, regulations and procedures prescribing a uniform cost and revenue accounting and reporting system for all common carriers by railroad subject to this part. Such regulations and procedures shall become effective not later than January 1, 1978. Before promulgating such regulations and procedures, the Commission shall consult with and solicit the views of other agencies and departments of the Federal Government, representatives of carriers, shippers, and their employees, and the general public.

"(b) In order to assure that the most accurate cost and revenue data can be obtained with respect to light density lines, main line operations, factors relevant in establishing fair and reasonable rates, and other regulatory areas of responsibility, the Commission shall

identify and define the following items as they pertain to each facet of rail operations:

(i) operating and nonoperating revenue accounts;

"(ii) direct cost accounts for determining fixed and variable cost for materials, labor, and overhead components of operating expenses and the assignment of such costs to various functions, services, or activities, including maintenance-of-way, maintenance of equipment (locomotive and car), transportation (train, yard and station, and accessorial services), and general and administrative expenses; and

"(iii) indirect cost accounts for determining fixed, common, joint, and constant costs, including the cost of capital, and the method for the assignment of such costs to various functions, services, or activities.

"(c) The accounting system established pursuant to this paragraph shall be in accordance with generally accepted accounting principles uniformly applied to all common carriers by railroad subject to this part, and all reports shall include any disclosure considered appropriate under generally accepted accounting principles or the requirements of the Commission or of the Securities and Exchange Commission. The Commission shall, notwithstanding any other provision of this section, to the extent possible, devise the system of accounts to be cost effective, nonduplicative, and compatible with the present and desired managerial and responsibility accounting requirements of the carriers, and to give due consideration to appropriate economic principles. The Commission should attempt, to the extent possible, to require that such data be reported or otherwise disclosed only for essential regulatory purposes, including rate change requests, abandonment of facilities requests, responsibility for peaks in demand, cost of service, and issuance of securities.