appears in more than one list-for example, the item of blank books under accounts Nos. 276, 334, 358, 410, and 458-and the proper charge in any one instance must be determined by the text of the account.*t

10.2-23 Rent for carrier property used but not owned. There shall not be included in these accounts rents paid for property (used in transportation service) which has been listed in the basic valuation inventory as carrier property used but not owned. The rents for such property (otherwise chargeable to these accounts) shall be charged to account 543, "Miscellaneous rents."*+ [As amended Apr. 18, 1928]

10.2-24 Depreciation accounting. The accounting for depreciation of equipment shall be in accordance with the following:

(a) There shall be currently charged to operating expenses, road and equipment, clearing and other accounts and credited to account 776, "Accrued depreciation-Equipment," during the service life of equipment, amounts which will approximate the loss in service value not restored by current repairs or covered by insurance. These charges for currently accruing depreciation shall be computed at such percentage rate of the ledger value of the equipment that the service value may be distributed under the straight-line method in equal annual charges to operating expenses and other accounts during the estimated service life of the equipment.

(b) All depreciation charges to operating expenses, road and equipment, clearing and other accounts and concurrent credits to account 776, "Accrued depreciation-Equipment," shall be made monthly in conformity with the group plan of accounting for depreciation. The term "group plan" as applied to equipment depreciation accounting means the plan under which depreciation charges are accrued upon the basis of the ledger value of the property included in each equipment primary account (Nos. 51 to 54 and 56 to 58, all inclusive), using the average service life thereof properly weighted and, upon the retirement of any unit of such property, its full service value is charged to account 776, "Accrued depreciationEquipment," whether or not the particular item has attained the estimated average service life. In determining such monthly charges and credits the annual percentage rates shall be applied to the ledger value, as of the first of each month, of the respective primary equipment accounts and the result divided by 12.

(c) For purposes of analysis the carrier shall maintain subsidiary records in which the reserve is broken down into component parts corresponding to each equipment primary account (Nos. 51 to 54 and 56 to 58, all inclusive) showing in these records also in complete detail by each such primary account the current credits and debits to the reserve. Such detailed information shall be reported annually to this Commission.

(d) In determining monthly depreciation charges to operating expense, road and equipment, clearing and other accounts, and the corresponding credits to the depreciation reserve, the annual per

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

centage rates applied to the ledger value of the property included in each primary equipment account (Nos. 51 to 54 and 56 to 58, all inclusive) shall be those which are prescribed from time to time by this Commission, except that where no rates previously have been prescribed, the carrier's estimate of the annual percentage rates computed in accordance with this instruction shall be used.

(e) The carrier shall keep such records of equipment retirements as will reflect the service lives and value of salvage of each class of equipment; shall maintain in convenient and accessible form engineering and other data bearing on prospective service lives; and shall be prepared at any time upon direction of this Commission to compute and submit for its approval, new percentage rates to take the place of those based on service lives or value of salvage found to be inacurate.

(f) If the cause of retirement of a unit of equipment is not a recognized factor in depreciation but is a cause against which the carrier is insured the depreciation reserve shall be credited with the full amount of the insurance recovered. If the cause is not a recognized factor in depreciation and the loss is not covered by insurance the carrier may upon proof that the charge will result in unduly depleting the depreciation reserve and with the approval of this Commission charge all or a part of the service value of the unit to account 72612, "Equipment retired," and distribute it from that account to account 330, "Extraordinary retirements-Equipment," or to account 619, "Debits from retired road and equipment."

(g) For the purpose of the group plan of depreciation accounting for equipment, the following primary accounts under road and equipment general account II, Equipment, are classed as depreciable

accounts:

51. Steam locomotives. 52. Other locomotives. 53. Freight-train cars.

54. Passenger-train cars. 56. Floating equipment. 57. Work equipment.

58. Miscellaneous equipment.

(h) The accounting for the depreciation of leased equipment shall be in accordance with § 10.03-2. The depreciation on equipment includible in operating expenses by the lessee under that instruction shall be stated under the group plan in accordance with the foregoing instructions pertaining to the carrier's owned equipment.*t [As amended June 13, 1934]

OPERATING EXPENSE ACCOUNTS.

I. MAINTENANCE OF WAY AND STRUCTURES.

The primary accounts included in this general account are designed to show the expenses of maintaining fixed improvements which are devoted to railway operations, with the exception of shop machinery, power plant machinery,

*For statutory citation, see note to § 10.00-1. For source citation, see note to § 10.2-1.

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and power plant apparatus, the expenses of maintaining which are includible in general account II, Maintenance of Equipment.

The accounts for maintenance of way and structures shall be kept in such manner as to show separately, by primary accounts, the expenses directly assignable to sleeping car operations, water-line operations, dining and buffet service, hotels and restaurants, grain elevators, stockyards, producing power sold, and other miscellaneous operations. [As amended Dec. 27, 1935] 10.201 Superintendence. This account shall include:

(a) Pay of officers. The pay of officers directly in charge of or engaged in the maintenance of roadway and structures.

(b) Pay of clerks and attendants. The pay of clerks and other employees in the offices and on the business cars of officers whose pay is chargeable to this account.

(c) Office and other expenses. Office expenses and other expenses of officers and employees whose pay is chargeable to this account; also amounts paid detective agencies and others for investigations in connection with maintenance of way and structures.

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cars.
Rent of offices.

NOTE A: When employees designated above are engaged on construction or other work not chargeable to Maintenance of Way and Structures, their pay and expenses while thus employed shall be charged to the specific work on which engaged.

NOTE B: When officers designated above have supervision over more than one department, their salaries, the pay of their clerks and attendants, and their office and other expenses shall be apportioned equally among the departments over which they have supervision.

NOTE C: No part of the pay and expenses of the officers and employees designated above shall be charged to other primary accounts under Maintenance of Way and Structures.

NOTE D: The cost of stationery for maintenance of way and structures offices is chargeable to account No. 276, "Stationery and printing."

†In §§ 10.201 to 10.462, inclusive, the numbers to the right of the decimal point correspond with the respective account numbers in Classification of operating revenues and operating expenses of steam roads (operating expense accounts), Interstate Commerce Commission, May 19, 1914. Amendments are noted in brackets following sections affected. Cross references to accounts are made by citing the account number, e. g., account 276, instead of the corresponding section number (§ 10.276).

10.202 Roadway maintenance. This account shall include: (a) Care of roadbed. The cost of repairing roadbed.

NOTE A: The cost of drains or sewers laid under tracks shall be included in account No. 208, "Bridges, trestles, and culverts." The cost of landscape gardening within the limits of the grounds around buildings shall be included in the appropriate repair accounts for buildings.

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(b) General cleaning. The cost of cutting, removing, and disposing of brush, grass, and weeds from the right of way; plowing and digging fireguards; dressing ballast and cutting sod lines; removing miscellaneous scrap, drift, cinders, dirt, and other material from right of way and from road and terminal tracks (including tracks at stations, engine yards, and car yards); and cleaning streets used as roadways.

NOTE B: Loading ashes at engine-yard tracks shall be charged to the enginehouse expense accounts.

(c) Watching roadway. The cost of extinguishing fires on right of way and adjacent thereto, and of walking, watching, and patrolling tracks and right of way.

NOTE C: The cost of watching and patrolling bridges, buildings, and miscellaneous property is provided for in accounts specifically relating to such property. (d) Bank protection. Cost of protecting banks by repairing retaining walls, riprap, piling, piers, dikes, breakwaters, and revetments, and by changing the channels of streams to prevent cutting, washing, and sliding of embankments.

(e) Train service. The cost of work-train service in connection with work pertaining to roadway maintenance.

(f) Track changes. The cost of roadway work in connection with taking up and relocating tracks.

(g) Other expenses. The cost of roadway work not provided for elsewhere, such as official roadway inspection train service and premiums in connection with roadway maintenance.

NOTE D: Tools and supplies used by repair men and watchmen in roadway maintenance service shall be charged to account No. 271, "Small tools and supplies."

(Note carefully §§ 10.2-2, 10.2–3.)*†

10.203 Roadway-Depreciation. This account shall include charges covering the current loss from depreciation of roadway. (See § 10.2-8.)*+

10.204 Underground power tubes. This account shall include the cost of repairing power tubes or conduits for underground contacts of electric railways or for underground cables of cable traction railways.

(Note carefully §§ 10.2–2, 10.2–3.)

DETAILS OF UNDERGROUND CONTACT CONSTRUCTION

NOTE: The cost of replacing track rails, other track material, electric contact rails, and insulators shall be charged to the accounts provided for such expenses and not to this account.

10.205 Underground power tubes-Depreciation. This account shall include charges covering the current loss from depreciation of underground power tubes. (See § 10.2-8.) **

10.206 Tunnels and subways. This account shall include the cost of repairing, ventilating, lighting, and watching tunnels and

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