possible the computation of a slightly different composite rate; And provided further, That until such time as an order is entered by the Commission prescribing specific rates sleeping car companies shall develop and apply depreciation rates in accordance with the method outlined in this order.

(g) For the assistance of the Commission in prescribing the composite annual percentage rates to be effective beginning January 1, 1937, each operating sleeping car company subject to the Act shall, not later than September 1, 1936, file with the Commission estimates of said percentage rates applicable to ledger values of the respective primary accounts covering the classes of property hereinbefore specified, owned and/or used by such company; such composite percentage rates shall be based upon estimated service values and service lives developed by a study of the company's history and experience and such engineering and other information as may be available with respect to future prospects, and shall produce a charge to operating expenses for the primary account, where more than one class of property is covered by the account, equal to the sum of the amounts that would otherwise be chargeable for each of the various classes; and such estimates shall be accompanied by a sworn statement showing the bases therefor and the methods employed in their computation.18

(h) Upon the retirement of a unit of depreciable property, whether or not the cause of the retirement is a recognized factor in depreciation, the service value shall be charged in its entirety to the depreciation reserve. Provided, That if the cause of retirement 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 insurance recovered; And provided further, That if the retirement charge will result in undue depletion of the depreciation reserve the carrier, after application to the Commission, may charge to an appropriate account in operating expenses or profit and loss such portion of the service value as the Commission may approve. (i) In determining the amounts to be respectively credited to the primary property investment accounts and charged to the material and supplies account and to the depreciation reserve in the case of the retirement of a unit of property, amounts for specific units shall be used so far as practicable; but where this is impracticable because of the relatively large number and small size of the units, average amounts shall be used.

(j) As of January 1, 1937, each operating sleeping car company shall establish and thereafter shall maintain records covering the cost of all carrier property owned and/or used for which depreciation accounting is herein prescribed; the manner in which such records shall be kept and the method of determining the amounts to be included therein as of January 1, 1937, and for subsequent property changes, shall be in accordance with finding (9) of 215 İ.C.C. 597, 608;

18

Upon the submission by the companies of the data specified above temporary orders will be issued, specifying the composite annual percentage rates to be used, such orders to be subject to modification from time to time thereafter in accordance with the procedure indicated in finding (8) of 215 I.C.C. 597, 608, or as may otherwise be deemed necessary or desirable by the Commission.

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and the ledger value of carrier property used for depreciation purposes thereafter shall be the costs entering into the records so provided.

(k) With respect to common-carrier property used but not owned operating sleeping car companies shall include in operating expenses charges for depreciation upon the same basis as for owned property and shall maintain the same records of service lives, salvage values, etc., as are required for owned property. Provided, That this shall not apply to units of property the depreciation of which is assumed by the lessor and the rent for which is includible in operating expenses nor, with the approval of the Commission, to other units of property with respect to which it is shown that there are special circumstances and conditions justifying such exception.

(1) As of the date when the system of depreciation accounting herein provided is made effective each operating sleeping car company shall make an estimate, in accordance with the principles set forth for the determination of currently accruing depreciation, of the amount of accrued depreciation in the depreciable property, such estimate to be broken down into component parts corresponding to the primary investment accounts in which are carried the classes of property for which depreciation accounting is prescribed, and shall enter the same in a record to be kept for future reference. Provided, That the amount so ascertained shall be subject to check and revision by the Commission and shall be treated as a tentative estimate until such time as it has been approved by the Commission.

(m) Each operating sleeping car company shall keep a record of property retirements which shall reflect the service life and percentage of salvage value of each important class of property hereinbefore specified; shall maintain in convenient and accessible form engineering and other data bearing on prospective service lives and salvage values; and shall be prepared at any time upon direction by the Commission to compute and submit, for the Commission's approval, new percentage rates to take the place of those based upon service lives or percentages of salvage value found to be inaccurate.

(n) All accounting terms used or accounting procedure specifically provided in this order shall be subject to such modification as may be necessary to bring them into harmony with such accounting classifications as may be prescribed by the Commission for concurrent or subsequent application. (Sec. 7, 34 Stat. 593, sec. 435, 41 Stat. 493; 49 U.S.Č. 20 (5)) [Depreciation charges of sleeping car companies, Docket No. 19440, 215 I.C.C. 597, May 18, 1936]

PART 18-EXPRESS COMPANIES: UNIFORM SYSTEM OF ACCOUNTS

18.318 Rent for real property and equip- 18.5-1 Balance sheet accounts

Section 18.00-1 Order of the Commission. It is ordered that (a) The uniform system of accounts for express companies 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.

(b) The said uniform system of accounts for express companies with the text pertaining thereto be, and the same is hereby, prescribed for the use of express companies subject to the provisions of the Act to Regulate Commerce as amended, in the keeping and recording of their accounts; each and every such carrier and each and every receiver or operating trustee of any such carrier be required to keep all accounts in conformity therewith; and a copy of the said Issue of 1914 be sent to each and every such carrier and to each and every receiver or operating trustee of any such carrier.

(c) Any such carrier or any receiver or operating trustee of any such carrier may subdivide any primary account established in the

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