which is includible in the accounts for investment in road and equipment.

(c) The accounts for maintenance of physical property have been arranged to correspond with those for the investment in such property. Depreciation accounts have been provided for the current depreciation of fixed improvements, although until further directed the recognition in operating expenses of current depreciation of fixed improvements is optional with the carrier. It is provided that organization and general administration expenses directly assignable to investments in stocks, bonds, and other securities shall be excluded from the accounts of this classification and included in income account No. 549, "Maintenance of investment organization.”

(d) The general and special instructions contain a comprehensive statement of the principles underlying the classification, indicating generally the application of the accounting rules. The attention of accounting officers is called to the importance of requiring all employees who are assigned to accounting work in connection with operating revenues and operating expenses to familiarize themselves thoroughly with the instructions in this part.

(e) In the preparation of the revision of the accounting rules contained in this and other classifications for steam roads, which are concurrently issued, the Commission has had the cooperation of the Association of American Railway Accounting Officers and of its Standing Committee on Corporate, Fiscal, and General Accounts.

(f) The classification, in tentative form, has been presented for criticism and suggestions to the chief accounting officer of each railway and to the railway commissions of the several States. All suggestions received from such parties have been given careful consideration, and many of them have been incorporated in the classification as here issued.* [Introductory letter to Classification of operating revenues and operating expenses of steam roads, ICC, May 19, 1914]

GENERAL INSTRUCTIONS

10.02-0 Records. The carrier's records shall be kept with sufficient particularity to show fully the facts pertaining to all entries made in the accounts provided herein for railway operations. Where the full information is not recorded in the general books, the entries therein shall be supported by other records in which the full details shall be shown. Such general book entries shall contain sufficient reference to the detail records to permit ready identification, and the detail records shall be filed in such manner as to be readily accessible for examination by representatives of the Interstate Commerce Commission. [Introduction to General Instructions, Classification of operating revenues and operating expenses of steam roads, ICC, May 19, 1914]

10.02-1 Operating accounts. The accounts of this classification are designed to show the revenues and expenses (including the maintenance of the facilities used) of the carrier's railway operations, including rail-line transportation, water-line transportation, if any, and services incident to transportation.

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

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Transportation includes the receipt, conveyance, and delivery of

traffic.

Rail-line transportation includes not only the conveyance of traffic over tracks, but also the necessary conveyance by water transfers (ferriage, lighterage, and floatage) either between track terminals or between track terminals and points not reached by tracks, such as the water transfers at present operated by carriers having track terminals at New York harbor, and the water transfers at present operated by the

Ann Arbor Railroad Company between Frankfort, Mich., and Manistee, Mich., Menominee, Mich., Kewaunee, Wis., and Manitowoc, Wis.

Atchison, Topeka & Santa Fe Railway Company between Ferry Point, Cal., and San Francisco, Cal.

Morgan's Louisiana & Texas Railroad & Steamship Company across the Mississippi River near New Orleans, La.

Nashville, Chattanooga & St. Louis Railway between Incline, Ala., and Gunters Landing, Ala.

New York, Philadelphia & Norfolk Railroad Company between Cape Charles, Va., and Norfolk, Va.

Southern Railway Company between Pinners Point, Va., and Norfolk, Va. Southern Pacific Company between Oakland, Cal., and San Francisco, Cal. Water-line transportation includes the transportation of local traffic from port to port, and the transportation of both local and interline rail and water-line traffic from port to port, such as the water-line transportation operations at present conducted by theBaltimore, Chesapeake & Atlantic Railway Company on Chesapeake Bay and the Potomac River.

Central Railroad Company of New Jersey between New York, N. Y., Atlantic Highlands, N. J.

and

Erie Railroad Company between Buffalo, N. Y., and Manitowoc, Wis., Milwaukee, Wis., and Chicago, Ill.

Southern Pacific Company between New York, N. Y., and New Orleans, La.; between New York, N. Y., and Galveston, Tex.; between New Orleans, La., and Habana, Cuba; and between San Francisco, Cal., and Sacramento, Cal.

Incidental revenues from meals, liquors, books, periodicals, etc., sold on vessels, have, because of established practice, been provided for in the primary accounts included in revenue general account II, Transportation-Water Line.

Carriers are at liberty to subdivide the general and primary accounts here given, but if this option be exercised a statement of the accounts adopted shall be filed in the office of the Division of Carriers' Accounts of the Interstate Commerce Commission.

The carrier means the accounting carrier, except when otherwise specifically indicated.**

tIn 88 10.02-1 to 10.02-5, inclusive, the numbers to the right of the dash correspond to the respective general instruction numbers in Classification of operating revenues and operating expenses of, Interstate Commerce Commission, May 19, 1914. The amendment of June 13, 1934, is noted in brackets following section affected. Cross references to accounts are made by citing the account number, e. g., account 778, instead of the corresponding section number (§ 10.778).

10.02-2 Unaudited items affecting operating accounts. When for any cause the amount of any item affecting operating revenues or operating expenses can not be accurately determined in time for inclusion in the accounts of the month in which the transaction occurs, the amount of the item shall be estimated and in such form

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

charged or credited to operating accounts and credited to balancesheet account 778, "Other unadjusted credits," or charged to balancesheet account 727, "Other unadjusted debits," as may be appropriate. Such items when audited shall be charged to account 778, "Other unadjusted credits," or credited to account 727, "Other unadjusted debits," as appropriate, the necessary adjustment between the original estimate and the actual amount of the item to be included in the appropriate operating revenue or operating expense account as the items are audited. The amounts thus included in suspense each month in account 727, "Other unadjusted debits," and in account 778, "Other unadjusted credits," shall be supported by records showing in detail the items which have been thus accrued and also the detail of the clearance from the suspense accounts of the items when audited. The suspense accounts thus created shall be kept separately for each year. The carrier is not required to anticipate minor items which would not appreciably affect the operating accounts.*† [As amended June 13, 1934]

10.02-3 Delayed items. When no provision has been made through entries in the accounts of these classifications for anticipating delayed items chargeable or creditable to the accounts herein, and the amount of any such item is relatively so large that its inclusion in the accounts for a single year would seriously distort those accounts, the carrier, if so authorized upon application to the Interstate Commerce Commission, shall distribute to Profit and Loss so much of the amount as may be authorized.

The carrier shall file with the Commission for approval the full particulars concerning each such item and the reasons which, in its judgment, indicate the propriety of such accounting.

When the amount of a delayed item is relatively so large that its inclusion in the accounts for a single month will seriously distort those accounts it may be distributed in equal monthly charges to the remaining months of the current fiscal year.

Delayed items are items representing transactions which occurred before the current fiscal year.**

10.02-4 Miscellaneous operations. The revenue and expenses of miscellaneous operations involving the use of such facilities as hotels and restaurants, power plants, cold-storage plants, coal-storage plants, cotton-compress plants, wood-preserving plants, ice-supply plants, etc., shall not be included in the accounts of this classification when the facilities used are distinct from those used by the carrier in the service of transportation or in the maintenance of facilities used in transportation service, and the operations are not incident to such service. (See income accounts No. 502, "Revenues from miscellaneous operations," and No. 534, "Expenses of miscellaneous operations," and balance-sheet account No. 705, "Miscellaneous physical property.")*+

10.02-5 Submission of questions. To the end that uniformity of accounting may be maintained from year to year, carriers shall submit all questions of doubtful interpretation of the accounting rules to the Commission for consideration and decision.**

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

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SPECIAL INSTRUCTIONS: OPERATING REVENUE ACCOUNTS

10.1-1 Accounts for operating revenues. The accounts provided for operating revenues are designed to show amounts of money which a carrier becomes entitled to receive from transportation and from operations incident thereto.

Credits to the revenue accounts shall as nearly as practicable be upon the basis of accruals of revenue.

Uncollected tariff charges on unclaimed and refused shipments of freight, such refused shipments having been transported in accordance with the contract of shipment, shall be charged to the appropriate revenue account to which shall be credited the proceeds derived from the sale of such unclaimed and refused freight.

The carrier's tariff charges on lost, destroyed, or damaged shipments, for which charges neither consignees nor consignors are liable, shall be charged to the revenue accounts previously credited.

Except as otherwise provided in this section, the revenue accounts shall include collections in excess of proper charges, such collections being subject to refund, and there shall be charged to the revenue accounts uncollectible revenue charges determined after the service has been rendered.*t [As amended Dec. 27, 1935]

+In 88 10.1-1 to 10.1-4, inclusive, the numbers to the right of the dash correspond with the respective special instruction numbers in Classification of operating revenues and operating expenses of steam roads, 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 727, instead of the corresponding section number (§ 10.727).

10.1-2 Interpretation of item lists. Lists of items to be credited and of items to be charged have been given as a part of the text of this classification for the purpose of clearly indicating the application of the accounting rules. They are not to be considered as comprising all the items creditable or chargeable to the several accounts, but merely as representative of them.

The items contained in the lists of items to be charged to the respective accounts are chargeable only when such items have been, through oversight, included in the credits to the accounts, or they are items of revenue payable to others for service to be rendered in accordance with the tariff provisions applicable to the rates upon which the credits to the several accounts have been based.*†

10.1-3 Accruals of revenues. In order that the revenue accounts may as nearly as practicable currently include the full amount of revenues the carrier may include in each month's revenue accounts estimated amounts of revenues or of unaudited revenues. The amount thus accrued shall be charged to account 727, "Other unadjusted debits." If these estimates are not adjusted in the accounts of the next following month the balances for each month shall be kept separately until adjusted.** [As amended June 13, 1934]

10.1-4 Cancelations. Account 111, "Special service train," has been canceled and credits and debits relating to the transportation of freight heretofore includible in that account are now includible in account 101, "Freight," and those in connection with transportation of passengers, in account 102, "Passenger." Account 112, "Other

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

freight-train," has been canceled and credits and debits heretofore includible in that account are now includible in account 101, "Freight."** [As amended Dec. 27, 1935]

OPERATING REVENUE ACCOUNTS

I. TRANSPORTATION-RAIL LINE

The primary accounts included in this general account are designed to show amounts of money which the carrier becomes entitled to receive or which accrue to its benefit from service rendered in transporting property or persons by rail line. (See § 10.02-1.) *†

10.101 Freight. This account shall include revenue from the transportation of freight and from transit, stop, and reconsigning privileges, upon the basis of lawful tariff rates.

ITEMS TO BE CREDITED

(See § 10.1-2.)

Revenue upon the basis of local freight tariff rates, regardless of class of train in which the freight is transported.

The carrier's proportion of revenue upon the basis of through freight tariff rates, regardless of class of train on which the freight is transported.

Revenue from transportation of mail matter, and empty mail pouches, at freight tariff rates.

Revenue from transportation of freight on special trains at rates based on weights of shipments.

Revenue on basis of classifications and freight tariffs from transportation of caretakers of freight shipments.

Revenue from reconsigning privileges.

Revenue from stop privileges.

Revenue from transit privileges.

Revenue upon the basis of arbitraries out of freight rates for water transfers (ferriage, lighterage, and floatage).

ITEMS TO BE CHARGED

(See § 10.1-2.)

Amounts paid as bridge and ferry arbitraries on freight.

Amounts paid for completing a haul.

Amounts paid for elevation of freight.

Amounts paid for switching services, in connection with the transportation of freight, on the basis of switching tariffs, and allowances out of through rates, including amounts paid for switching empty cars in connection with a freight revenue movement.

Amounts paid for transferring freight between stations.

Arbitraries and allowances to others for lighterage and wharfage.

The carrier's proportion of overcharges resulting from the use of erroneous rates, weights, classifications or computations.

The carrier's proportion of refunds on account of errors in routing and billing. The carrier's proportion of uncollected revenue on freight lost or destroyed in transit.

The carrier's proportion of uncollected tariff charges on damaged shipments for which charges neither shipper nor consignee is liable.

**[As amended July 25, 1925]

NOTE A: Amounts paid for switching empty cars otherwise than in connection with loaded movements shall be charged to operating expense account No. 411,

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

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