on capital stock and proceeds thereof to be used for construction purposes only.**

NOTE A: Special taxes assessed in connection with the construction of street and other improvements, such as grading, sewers, curbs, gutters, paving, and sidewalks, shall be charged to the account to which was charged the property affected.

NOTE B: Taxes levied on property after it is sufficiently advanced to be devoted to commercial operations shall be charged to account No. 215, "Taxes assignable to railway operations."

14.550 Miscellaneous. This account shall include all expenses of a special and incidental nature directly incurred in connection with the construction or acquisition of property classable as road and equipment, which can not properly be included in any other account in this classification. Following are some of the items which shall be included in this account: Fees paid to governments for incorporation; office and other expenses incident to organizing the corporation; cost of preparing and distributing prospectuses; cost of soliciting subscriptions for stock; cash fees paid to promoters; the actual cash value, at the time of organization, of securities issued to promoters for their services in organizing the company; counsel fees in connection with organization; cost of preparing and issuing stock certificates; salaries and expenses of executives and general officers and of general office clerks, or an equitable proportion thereof, when such officers and clerks give all, or a substantial proportion, of their time to construction work and accounts; stationery and printing; insurance; cost of operating a part of the road during the construction period and before the regular operation of revenue cars; credits representing rents of buildings and other properties, and credits for the transportation of commercial freight and passengers, during the construction period; and analogous items.**

NOTE: If the carrier so desires, the above expenses may be kept separate by the use of subaccounts.

NOTE: The requirement that all similar transactions were to be recorded under accounts having identical captions gave rise to numerous queries, as to the proper application of these mandatory regulations. Decisions upon these accounting questions are published in bulletin form under order of the Commission, and have the force of the original classifications affected. Apply for Accounting Bulletin No. 14 for electric railways, Interstate Commerce Commission, Washington, D. C.

Sec.

PART 16-SLEEPING CAR COMPANIES: UNIFORM
SYSTEM OF ACCOUNTS

Introduction.

16.00-1 Order of the Commission.

Sec.

16.102 Tourist sleeping car berth reve

16.00-2 Introductory letter to carriers 16.103
concerned.
Classification of Revenues and

nue.

Other car berth revenue.

16.104

Standard sleeping car seat rev

enue.

Expenses of Sleeping Car Com- 16.105 Tourist sleeping car seat revepanies.

16.1-1 Explanatory note.

16.106

Classification of Revenues of 16.107
Sleeping Car Operations.
16.108

16.101 Standard sleeping car berth 16.109

revenue.

*For statutory citation, see note to § 14.00-1. +For source citation, see note to § 14.501.

nue.

Parlor car seat revenue.
Composite car seat revenue.
Other car seat revenue.

Charter of standard sleeping
cars-Per diem rates.

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16.110 Charter of standard sleeping 16.228 District employees and expenses. cars-Berth rates. 16.229 Conductors.

16.230 Porters and maids.
16.231 Car cleaning-General.
16.232 Car cleaning-Special.
16.233 Laundry.

16.113 Charter of private cars-Per 16.234 Other car

Sec.

Classification of Revenues and
Expenses of Other Properties

16.5-1 Explanatory Note.

Sec.

16.502 Revenue from repairs of cars owned.

16.503 Revenue from construction and repair work for others.

Revenues (or Income)-Manu- 16.504 Miscellaneous revenue (or in

facturing Plants

16.501 Revenue from construction of

cars owned.

come). Expenses

16.601 Operating expenses.
16.602 Taxes.

INTRODUCTION

Section 16.00-1 Order of the Commission. It is ordered that (a) The Classification of Revenues and Expenses of Sleeping Car Operations, of Auxiliary Operations, and of Other Properties for Sleeping Car Companies, with the text pertaining thereto, embodied in printed form to be hereafter known as First Revised Issue, 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 Classification of Revenues and Expenses of Sleeping Car Operations, of Auxiliary Operations, and of Other Properties for Sleeping Car Companies, with the text pertaining thereto, be, and it is hereby, prescribed for the use of sleeping car companies subject to the provisions of the Act to regulate commerce as amended in the keeping and recording of their revenue and expense accounts; each and every such carrier and each and every receiver or operating trustee of any such carrier be required to keep all revenue and expense accounts in conformity therewith; and a copy of the said First Revised Issue be sent to each and every such carrier and to each and every receiver or operating trustee of any such carrier.

(c) The rules contained in the said First Revised Issue of the Classification of Revenues and Expenses of Sleeping Car Operations, of Auxiliary Operations, and of Other Properties for Sleeping Car Companies are, and by virtue of this order do become, the lawful rules according to which the said revenues and expenses are defined; each and every person directly in charge of the accounts of any such carrier or of any receiver or operating trustee of any such carrier is hereby required to see to, and under the law is responsible for, the correct application of the said rules in the keeping and recording of the revenue and expense accounts of any such carrier; and it shall be unlawful for any such carrier or for any receiver or operating trustee of any such carrier or for any person directly in charge of the accounts of any such carrier or of any receiver or operating trustee of any such carrier to keep any account or record or memorandum of any revenue or expense item except in the manner and form in the said First Revised Issue set forth and hereby prescribed, and except as hereinafter authorized.

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(d) Any such carrier or any receiver or operating trustee of any such carrier may subdivide any primary account in the said First Revised Issue established as may be required for the purposes of any such carrier or of any receiver or operating trustee of any such carrier; or may make assignment of the amount credited or charged to any such primary account to operating divisions, to its individual lines, or to States: Provided, however, That a list of such subprimary accounts set up or such assignments made by any such carrier or by any receiver or operating trustee of any such carrier be first filed in the office of the Division of Carriers' Accounts of this Commission subject to disapproval by the Commission.

(e) In order that the basis of comparison between the year ending June 30, 1913, and previous years be not destroyed, any such carrier or any receiver or operating trustee of any such carrier may, during the 12 months ending June 30, 1913, keep and maintain, in addition to the revenue and the expense accounts hereby prescribed, such portion or portions of its present accounts with respect to revenue or expense items as may be deemed desirable by any such carrier or by any receiver or operating trustee thereof, for the purpose of such comparison; or, during the same period, may maintain such groupings of the primary accounts hereby prescribed as may be desired for that purpose.

(f) Any such carrier or any receiver or operating trustee of any such carrier may, in addition to the revenue and the expense accounts hereby prescribed, keep any temporary or experimental accounts the purpose of which is to develop the efficiency of operations: Provided, however, That such temporary or experimental accounts shall not impair the integrity of any general or primary account hereby prescribed; and that any such temporary or experimental accounts shall be open to inspection by the Commission.

(g) July 1, 1912, is hereby fixed as the date on which the said First Revised Issue shall become effective.* [Order adopting Classification of revenues and expenses of sleeping car operations, of auxiliary operations, and of other properties for sleeping car companies, ICC, June 10, 1912]

*§§ 16.00-1 to 16.602, inclusive, issued under the authority contained in sec. 20, 24 Stat. 386, sec. 7, 34 Stat. 593, sec. 435, 41 Stat. 493; 49 U.S.C. 20 (5).

16.00-2 Introductory letter to carriers concerned. (a) The Classification of Operating Revenues and Expenses of Sleeping Car Companies, First Issue, was promulgated under date of July 1, 1910. A study of the questions arising from the application of that classification, and consideration of suggestions submitted by those responsible for its application, have led to the conclusion that it is desirable to issue a revised edition and to include in the same publication a classification of revenues and expenses of auxiliary operations, and of other properties.

(b) In this Classification of Revenues and Expenses of Sleeping Car Operations, of Auxiliary Operations, and of Other Properties for Sleeping Car Companies, First Revised Issue, a number of additional primary accounts have been provided both for revenues and for expenses for Sleeping Car Operations, which experience has indicated

Page 356

are essential for the purposes of the Commission, as also of the sleeping car companies.

(c) The classification provided for Other Properties includes the operation of manufacturing plants. Attention is particularly invited to the provision that charges for work done in the manufacturing plants to the property investment accounts and to the sleeping car operations expense accounts shall be upon basis of prices which fairly represent the cost of the work done.

(d) Accounts have been provided in the classification for Sleeping Car Operations to cover the expenses on account of depreciation on buildings, appurtenances, and grounds, with a view of securing, as nearly as may be, for each fiscal period true statements of operating costs. No rates have been prescribed for computing such depreciation, it being the purpose of the Commission to place sleeping car companies in the same position with respect to depreciation upon such property as they are placed under the rules of the classification relative to the determination of depreciation accruals upon equipment.

(e) Accounting officers are requested to correspond with the Division of Carriers' Accounts in case doubt should arise with regard to the correct interpretation of any account.* [Introductory letter to Classification of revenues and expenses of sleeping car operations, of auxiliary operations, and of other properties for sleeping car companies, ICC, June 10, 1912]

CLASSIFICATION OF REVENUES AND EXPENSES OF SLEEPING CAR COMPANIES

16.1-1 Explanatory note. The words "Sleeping car", as used in the term "Sleeping car operations" in this classification, include standard sleeping, tourist sleeping, parlor, composite, private, and other cars operated by a sleeping car company to furnish berths or seats to passengers.

Taxes should not be included in Operating Expenses, but should be deducted from "Total Net Revenue" in the Income Account.

Entries in the accounts prescribed in this classification shall not include expenditures on account of additional property and equipment, or for additions to and betterments of the property and equipment of sleeping car companies.

The accounts pertaining to the operation of dining, buffet, and other car facilities, or for services rendered (other than those incidental to the sleeping car operations), the revenues and expenses of which, if included in the accounts pertaining to sleeping car operations, would impair the significance of statistics prepared from such accounts, shall be kept in accordance with the provisions of the classifications provided for Auxiliary Operations. Miscellaneous receipts and expenditures, when no service is performed, should not be treated as auxiliary operations.

The expenses of maintenance of facilities for any service, or distinct portion thereof, assigned exclusively to an auxiliary operation, should devolve upon the auxiliary operation when separable from the expense of maintaining the sleeping car operations. The maintenance of

*For statutory citation, see note to § 16.00-1.

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