(b) Expenses. The traveling and other expenses of officers whose pay is included in this account, including supplies for business cars used by them, cost of running official trains for them, and cost of membership fees and dues in railway and other associations.*+

NOTE A: When officers' duties are restricted to a single department, their salaries and expenses shall be charged to that department in the accounts for superintendence or for law expenses, as may be appropriate. When officers have immediate supervision over more than one operating department, their salaries and expenses shall be apportioned equally among the departments over which they have jurisdiction.

NOTE B: The pay and expenses of the purchasing agent, assistant purchasing agent, assistant to purchasing agent, general storekeeper, division storekeeper, their clerks and attendance, shall be charged through clearing accounts "Material store expenses" and "Stationery store expenses," or material account "Fuel," as may be appropriate.

10.452 Salaries and expenses of clerks and attendants. This account shall include the pay and expenses of clerks and attendants of the officers whose salaries are includible in account No. 451, "Salaries and expenses of general officers."

(a) Pay of clerks. The pay of persons employed in accounting and clerical service.

(b) Pay of attendants. The pay of persons employed in attendance at general offices and on business cars.

(c) Expenses. The traveling and other expenses of employees designated above, including the cost of supplies for business cars and cost of running official trains for them.**

10.453 General office supplies and expenses. This account shall include the office expenses of officers designated in account No. 451, "Salaries and expenses of general officers."

NOTE: The proportion of general office expenses occasioned by the law department shall be included in account No. 454, "Law expenses."

10.454 Law expenses. This account shall include the pay and the office and other expenses, when not provided for elsewhere, of officers and employees of the law department, the cost of suits, and the payments of special law fees.

Drawing and recording agreements as Notarial fees not provided for elseto trackage rights, etc.

Express charges.

where.
Office expenses.

Fees and retainers of attorneys (not Printing of briefs, testimony, and re

10.455 Insurance. This account shall include premiums, except reinsurance premiums, for insuring the carrier against loss, through injuries to persons or damage to or destruction or loss of property, whether caused by fire, accident, or other cause, when such loss to the carrier would be chargeable to general account VII, General; also premiums on fidelity bonds of officers and employees whose pay is chargeable to general account VII, General. (See § 10.2-18.)*7

NOTE: The premiums paid by the carrier to its insurance fund shall be credited to an insurance account, to which account shall be charged the amount of all claims for injuries to persons and damages to the property covered by its insurance. To such account shall also be charged all reinsurance premiums paid to insurance companies, and to it shall be credited all amounts recovered from insurance companies for damage to the property reinsured by them.

10.456 Relief department expenses. This account shall include salaries and expenses incurred in connection with conducting relief departments; also contributions to such departments.*+

10.457 Pensions. This account shall include pensions or gratuities paid out of the carrier's funds to retired employees or their heirs and the expenses solely in connection therewith.* [As amended Nov. 23, 1928]

NOTE: If the carrier has definitely undertaken by contract to pay pensions to employees when regularly retired for superannuation and/or disability and has established a fund to be held in trust for such pension purposes, it shall charge to this account monthly amounts determined through the application of equitable actuarial factors to the current payrolls, which, together with interest accruals on the trust funds, will as nearly as may be, provide for the payment of such pensions, or for the purchase of annuities corresponding thereto. The amounts so charged shall be concurrently credited to a reserve account under account 769, "Liability for provident funds." The amounts accrued in each year shall correspond to the aggregate of the amounts paid into the trust fund and expended directly by the carrier for pensions or annuities during the year. The carrier shall maintain a complete record of the actuarial computations through which the accrual each month of its pension liabilities is established.

Upon the adoption of the accrual plan of accounting, pension payments to employees retired before the adoption of such plan shall be charged to an existing pension reserve or to profit and loss.

Before adopting the accrual plan of accounting for pensions the carrier shall inform the Commission of the details of its pension plan giving full statement of the facts which in its judgment establishes a contractual obligation for pension payments together with the actuarial formula under which it proposes to create its pension trust fund, and also a copy of the declaration of trust under which the fund is established.

No charge to this account shall be made in anticipation of discretionary pension payments in the future.

The accounting is effective as of the date on which the carrier makes effective its definite contractual obligation to pay such pensions.

10.458 Stationery and printing. This account shall include the cost of stationery and printing used in general offices and not chargeable to other accounts, including the cost of printing annual reports, contracts, leases, stock certificates, and passes.

*For statutory citation, see note to § 10.00-1.

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Addressographs and sup- Ink for writing and draw- Postage.

Adding machines.

ing. Inkstands.

Invoice books.

Legal cap paper.

Letter paper.

Manifold paper.

Manifold pens.

Dating stamps and rib- Paper fasteners.

bons.

Paper files.

Paper weights.
Papyrographs.
Parchment paper.
Passes.

Pay checks.

Pencil sharpeners.

Erasers, rubber and steel. Pencils for writing

Pens for writing and
drawing.

Phonographs and records.

Wastebaskets.
Water colors.
Water holders.
Wrapping paper.
Wringers for copying
presses.

NOTE A: The cost of printing briefs, legal forms, testimony, reports, etc., for the law department is chargeable to account No. 454, "Law expenses."

NOTE B: The cost of printing bonds, etc., in connection with the carrier's funded debt shall be included in balance-sheet account No. 725, "Discount on funded debt."

10.459 Valuation expenses. This account shall include expenses incident to the ascertainment (in accordance with the Act to Regulate Commerce as amended March 1, 1913, or with other Federal or State requirements) of the value of property owned or used by the carrier, such expenses including pay, and office, traveling, and other expenses of officers specially employed or assigned to such work, and of their assistants, clerks, and attendants, and the cost of stationery and printing, and of engineering supplies consumed.**

NOTE: No charge shall be made to this account for the salaries of officers or of their clerks and attendants for incidental services in connection with valuation work; but special office, clerical, traveling, and incidental expenses incurred by these officers on account of such work shall be included as a part of the cost of the work.

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*For statutory citation, see note to § 10.00-1.

10.460 Other expenses. This account shall include incidental general expenses which are not properly chargeable to any of the foregoing accounts.

Cost of publishing annual reports in newspapers, and other corporate and financial notices of general character.

Cost of publishing notices of stockholders' meetings and of election of directors. Donations on account of catastrophes, epidemics, etc.

Donations to local fire departments.

Donations to Y. M. C. A., and similar institutions.

Exchange on checks cashed or deposited.

Exchange on drafts bought.

Fees and expenses paid to directors and trustees.

Loss through payment of wages to a wrong person.

Penalties assessed for nonpayment of claims for overcharges.

**

10.461 General joint facilities-Dr. This account shall include the carrier's proportions of general expenses incurred by others incident to maintaining and operating tracks, yards, terminals, and other facilities used jointly.*f

NOTE: The purpose of this account is to show the amount accruing against the carrier for its proportion of the expense of general administration of tracks, yards, terminals, and other facilities administered by others, and in the joint use of which the carrier participates. (See § 10.2-9.)

10.462 General joint facilities-Cr. This account shall include amounts chargeable to others as their proportions of general expenses incurred by the carrier incident to maintaining and operating tracks, yards, terminals, and other facilities used jointly.**

NOTE: The purpose of this account is to show the amounts accruing in favor of the carrier and against others for their proportions of the expense of general administration of tracks, yards, terminals, and other facilities administered by the carrier, and in the joint use of which others participate. (See § 10.2-9.)

VIII. TRANSPORTATION FOR INVESTMENT

CR.

This account shall include fair allowances representing the expense to the carrier of transporting, on transportation trains, men engaged in and material for construction.

Amounts credited to this account shall be concurrently charged to the appropriate property investment accounts.

SUBPART C-CLASSIFICATION OF INCOME, PROFIT AND LOSS, AND GENERAL BALANCE SHEET ACCOUNTS

INTRODUCTION

10.00-5 Order of the Commission. It is ordered that (a) The Classification of Income, Profit and Loss, and General Balance Sheet Accounts, with the text pertaining thereto, embodied in printed form to be hereafter known as Issue of 1914, a copy of which is now before this Commission, be, and the same is hereby, approved; a copy thereof duly authenticated by the Secretary of the Commission be filed in its archives, and a second copy thereof, in like manner authenticated, in the office of the Division of Carriers' Accounts; and each of said copies so authenticated and filed shall be deemed an original record thereof.

*For statutory citation, see note to § 10.00-1.

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