revenue is derived; also the excess cost of improved fixtures and appliances over the original cost of such property retired or removed and replaced.

The term car includes body and trucks, and all fixtures and appliances inside of or attached to the car body or trucks, except the electric motive equipment of the car. The term combination car includes all cars that are used in part for carrying passengers.**

14.531 Freight, express, and mail cars. This account shall include the cost of freight, express, and mail cars from the operation of which revenue is derived; also the excess cost of improved fixtures and appliances over the original cost of such property retired or removed and replaced.

The term car includes body and trucks and all fixtures and appliances inside of or attached to the car body or trucks, except the electric motive equipment of the car.**

14.532 Service equipment. This account shall include the cost of water cars, sprinkler cars, sand cars, salt cars, supply cars, and maintenance of way and line cars; snow plows, sweepers, scrapers, and miscellaneous snow-handling equipment; and pile drivers, rail grinders, cranes, welding and bonding apparatus, and similar equipment, where permanently mounted on cars; also the excess cost of improved fixtures and appliances over the original cost of such property retired or removed and replaced.*†

14.533 Electric equipment of cars. This account shall include the cost of electric motive equipment and wiring of cars, whether revenue or work cars, including cost of labor, material, tools, freight, hauling of material, and other expense incident to this work; also the excess cost of improved fixtures and appliances over the original cost of such property retired and replaced.

By electric equipment of cars is meant the electric motive equipment and the wiring for such equipment.**

14.534 Locomotives. This account shall include the cost of locomotives, including appurtenances, fixtures, and electric equipment necessary to fit them for service, and cost of labor, material, tools, freight, hauling of material, and other expense incident thereto; also the excess cost of improved fixtures, appliances, or parts over the original cost of such property retired or removed and replaced.

To this account shall be charged the cost of steam or other locomotives and tenders, including all appurtenances and fixtures necessary to equip them for service.**

14.535 Floating equipment. This account shall include the cost of marine or floating equipment of all kinds, including appurtenances, furniture, and fixtures necessary to equip them for service; cost of inspection and transportation; also the excess cost of new or improved floating equipment or appurtenances over the original cost of such property removed and replaced.*+

14.536 Shop equipment. This account shall include the cost of installing machinery and tools used in shops or carhouses, including

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

specially provided foundations and settings. It includes the cost of stationary engines and boilers, motors, compressors, shafting, belting, cranes, forges, portable scales, conduits, and fixtures for conveying compressed air, and other machinery and tools necessary to first equip shops (except as provided for in account No. 538); also the excess cost of improved or enlarged machinery and tools over the original cost of such property retired and replaced.*+

14.537 Furniture. This account shall include the cost of movable furniture and fittings for general offices, shops, power plant and substation buildings, stations, waiting rooms, etc., such as desks, tables, chairs, carpets, cases, movable partitions, railings, and shelves; typewriters, addressing machines, adding machines, and other office devices; stoves, portable gas and electric fixtures, and other office fittings (except fixtures considered a part of the building). This account shall also include the excess cost of furniture and fittings over the original cost of such property removed and replaced.*†

14.538 Miscellaneous equipment. This account shall include the cost of equipment of general stables, including horses, harness, drays, wagons, automobiles, and other vehicles; equipment of shoeing shops, harness repair shops, vehicle repair shops, etc.; also the excess cost of new or improved equipment over the original cost of such property retired or removed and replaced.*+

III. POWER

14.539 Power plant buildings. This account shall include the cost of labor and material used in erecting buildings to be used as power-generating plants, including excavation; foundations, except those special to particular machines and apparatus; drainage, gas, and water pipes and connections; fixtures, when built into and constituting a part of the building; architects' fees; grading, improving, and fencing grounds; coal trestles and pockets; and wells, artificial lakes, ponds, or pipe lines to supply water for steam plant; also the excess cost of improved or enlarged power plant buildings over the original cost of such property removed and replaced.

When a lighting business is conducted in connection with the operation of an electric railway the entire cost of power plant buildings shall be included in this account.**

NOTE: The cost of foundations special to particular machines or apparatus shall be included in the accounts to which the cost of such machines or apparatus is chargeable.

14.540 Substation buildings. This account shall include the cost of buildings to be used as power substations or storage battery buildings, including excavations; foundations, except those special to particular machines and apparatus; drainage, gas, and water pipes and connections; fixtures, when built into and constituting a part of the building; architects' fees; and expense of grading, improving, and fencing grounds; also the excess cost of improved or enlarged substation buildings over the original cost of such property removed and replaced.

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

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When a lighting business is conducted in connection with an electric railway, the entire cost of substation buildings shall be charged to this account.**

NOTE: The cost of foundations special to particular machines or apparatus shall be included in the accounts to which the cost of such machines or apparatus is chargeable.

14.541 Dams, canals, and pipe lines. This account shall include the cost of dams, canals, aqueducts, pipe lines, and penstocks devoted to the utilization of water power and the delivery of the water into the inlet valve of the turbine or water wheel; also that of all wasteways. This includes all gates, valves, and other accessories of such dams; sluices, forebays, grids, walls, buildings, fences, etc., for the operation and protection of such canals and pipe lines; trestles and other supporting structures; and viaducts, bridges, footbridges, etc., necessitated by such canals, aqueducts, and pipe lines; also the excess cost of improved or enlarged dams, canals, and pipe lines or parts thereof over the original cost of such property abandoned or removed and replaced.*+

14.542 Power plant equipment. This account shall include the cost of labor and material used in equipping plants for generating power; including cost of engines, boilers, pumps, condensers, and equipment for generating steam power; dynamos, generators, wiring and appliances, and other equipment for generating electric current special foundations and settings; traveling cranes; switchboards and fixtures and appliances connected therewith; also the excess cost of improved or enlarged equipment and appurtenances over the original cost of such property removed and replaced. The cost of cables and of machinery for the propulsion of cables used in the operation of cable or incline railways shall be charged to this account.

When a lighting business is conducted in connection with an electric railway, the cost of machinery and equipment necessary for the generation of power for lighting shall be included in this account.*+

NOTE: The cost of foundations other than those special to particular machines and other apparatus shall be included in the cost of the building, and not in this account.

14.543 Substation equipment. This account shall include the cost of labor and material used in equipping power substations; including cost of boilers, storage batteries, transformers, rotary converters, specially provided foundations and settings, switchboards and fixtures and appliances connected therewith, and equipment for portable substations; also the excess cost of improved or enlarged equipment and appurtenances over the original cost of such property removed and replaced.**

NOTE: The cost of foundations other than those special to particular machines and other apparatus shall be included in the cost of the building, and not in this account.

14.544 Transmission system. This account shall include the cost of labor and material used in constructing transmission system, including cost of poles, fixtures, and conduits used primarily for carrying transmission lines; cables, wires, insulators, and insulating material; cost of cutting and trimming trees for transmission lines and cost of

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

constructing roads or footways for patrolling such lines; also the excess cost of improved transmission lines and appliances installed over the original cost of such property removed and replaced.*+

NOTE: When the electric current generated or received is changed by means of rotary converters, motor generator sets, or static transformers, that portion of the line or outside conductor system carrying current of other than the operating kind or voltage shall be classed as transmission system. When the electric current is generated or received and used substantially unchanged in voltage and kind, the line or outside conductor system, including feeders, trolley wire, booster circuits, and supplementary return, if any, shall be classed wholly as distribution system. Tie lines between generating stations and substations shall follow the same rule as other lines.

IV. GENERAL AND MISCELLANEOUS

The primary accounts in this general account are provided to include expenditures made by a carrier in connection with the construction or acquisition of new lines or additions and betterments to its physical property, but which cannot properly be included in any of the foregoing accounts as a part of the cost of any specific work.

14.545 Franchises. This account shall include actual amounts paid to a State or to a political subdivision thereof in consideration of franchises running in perpetuity or for a specified term of more than 1 year and necessary to the conduct of the carrier's operations. Similar payments for perpetual or limited franchises covering additional territory shall also be charged to this account.*†

NOTE A: Payments made periodically in the nature of taxes, percentages of revenues, etc., shall be included in income account No. 215, "Taxes assignable to railway operations."

NOTE B: Balance-sheet account No. 444, "Reserve for amortization of franchises," has been provided, to which may be credited monthly and charged to operating expense account No. 91, "Amortization of franchises," a monthly proportion of annual amounts which, written off proportionately over the life of limited franchises, will create a reserve sufficient, at time of expiration of franchises, to offset the amount charged to this account for such franchises. Upon expiration of a franchise, account No. 444, "Reserve for amortization of franchises," shall be debited and this account shall be credited with the amount paid therefor.

14.546 Law expenditures. This account shall include law expenditures incurred on account of construction, including pay and expenses of counsel, solicitors, and attorneys, their clerks and attendants, and the expenses of their offices; cost of printing briefs, legal forms, testimony, reports, etc.; payments to arbitrators upon disputed questions; payments of special fees, notarial fees, and witness' fees not elsewhere provided for; expenses connected with taking depositions, and court costs and expenses.

Expenses in connection with the conduct of suits and not otherwise provided for shall be included in this account.*†

NOTE A: Expenditures above designated, when chargeable directly to the account for which incurred, shall not be charged to this account.

NOTE B: Law expenditures in connection with the organization of the company shall be charged to account No. 550, "Miscellaneous."

14.547 Interest during construction. When any bonds, notes, or other evidences of indebtedness are sold or any interest-bearing debt is incurred for acquisition or construction of original road and equipment, extensions, additions, and betterments, the interest accruing on the

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

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part of the debt representing cost of property chargeable to road and equipment accounts (less interest, if any, allowed by depositaries on unexpended balances) after such funds become available for use and before the receipt or the completion or coming into service of the property so acquired shall be charged to this account.

When such securities are sold at a premium the proportion of such premium assignable to the time between the date of the actual issuance of the securities and the time when the property acquired or the improvement made becomes available for service shall be credited to this account.

This account shall include also such proportion of the discount and expense on funded debt issued for construction or addition and betterment purposes as is equitably assignable to the period between the date of the actual issuance of securities and the time when the property acquired or the improvement made becomes available for the service for which it is intended. The proportion of discount and expense thus chargeable shall be determined by the ratio between the period prior to the completion or coming into service of the facilities or improvements acquired or constructed and the period of the entire life of the securities issued.

This account shall also include reasonable charges for interest during the construction period on the carrier's own funds used temporarily during such period for construction purposes.**

NOTE: If any securities which have been issued or assumed by the carrier are sold or exchanged by or for the carrier for a consideration the actual money value of which at the time of such sale or exchange is less than the value of the securities at par and the accrued interest thereon, if any, the difference between the money value of the consideration received and the par value of the securities plus the accrued interest shall be deemed discount, and in no case (except as provided in the third paragraph of this account) shall discounts be included as part of the cost of anything charged to any account prescribed in this classification.

14.548 Injuries and damages. This account shall include all expenses incident to injuries to persons or damage to property caused directly in connection with construction and equipment of road. To it shall be charged during the construction period, the salaries and expenses of physicians and surgeons; medical and surgical supplies; nursing and hospital attendance; artificial limbs; railway and carriage fares for conveying injured persons and attendants; also the pay and expenses of claim adjusters and their clerks, witness fees, and pay and expenses of employees and others called in consultation in relation to the adjustment of claims coming under this head.

The amount of final judgments and plaintiffs' court costs in connection with suits not otherwise provided for shall be included in this account.**

NOTE: When any of the expenses designated above can be charged directly to the account for which incurred, they shall be so charged, and not to this account.

14.549 Taxes. This account shall include all taxes and assessments except special taxes for public improvements levied and accrued on property belonging to the company while under construction and before the road is opened for commercial operation, including taxes

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