UC-NRLF A LETTER TO General, Departmental and Divisional Construction and Maintenance Officers Their Agents and Assistants, About Construction and Maintenance Costs. Prepared for Use on the Following Lines: The Cincinnati, New Orleans & Texas Pacific Railway. The Alabama Great Southern Railroad. Georgia Southern & Florida Railway. Northern Alabama Railway. High Point, Randleman, Asheboro & Southern Railroad. Yadkin Railroad. Atlantic & Yadkin Railway. Harriman & Northeastern Railroad. Cincinnati, Burnside & Cumberland River Railway. Woodstock & Blocton Railway. Belt Railway Company of Chattanooga. Augusta Southern Railroad. Blue Ridge Railway. Danville & Western Railway. Tallulah Falls Railway. Hartwell Railway. Lawrenceville Branch Railroad. St. Johns River and Other Terminals and SOUTHERN RAILWAY. to COPYRIGHT, 1916, BY A. H. PLANT. QQ A LETTER TO General, Departmental and Divisional Construction and Maintenance Officers Their Agents and Assistants, About Construction and Maintenance Costs. Prepared for Use on the Following Lines: The Cincinnati, New Orleans & Texas Pacific Railway. The Alabama Great Southern Railroad. Georgia Southern & Florida Railway. Northern Alabama Railway. High Point, Randleman, Asheboro & Southern Railroad. Yadkin Railroad. Atlantic & Yadkin Railway. Harriman & Northeastern Railroad. Cincinnati, Burnside & Cumberland River Railway. Woodstock & Blocton Railway. Belt Railway Company of Chattanooga. Augusta Southern Railroad. Blue Ridge Railway. Danville & Western Railway. Tallulah Falls Railway. Hartwell Railway. Lawrenceville Branch Railroad, St. Johns River and Other Terminals and SOUTHERN RAILWAY. COFYRIGHT, 191)5,1- \ BY ,/:': A. H. n OFFICE OF THE COMPTROLLER. WASHINGTON, D. C., December i, 1916. To Officers, Agents and Employees of the Maintenance Departments: GENTLEMEN: The primal duty of Maintenance Offi- cers, their Agents and Assistants, is to do things; that of the Accounting Officer is to record and to account for things done. The work of Maintenance Officers is done under rules and specifications; so also is the work of the Accounting Officer. If a structure be built regardless of rules or specifications, disaster is likely to follow, and if the ac- counts be erroneously constructed and stated chaos will, and financial disaster may, be the result. Possibly no two Departments are so mutually depend- ent upon each other for correctness of results as are the Maintenance and Accounting Departments. Especially is this true with respect to the dependence of the Account- ing Officer upon the Maintenance Officer for the correct- ness of Property and Maintenance accounts. Helpful, intelligent co-operation is the foundation of success on a railway; to give it fully we must know what is needed. The object of this letter is to do my part in an effort to draw the Maintenance and the Accounting Officers more closely together, to the end that they may be helpful one to the other and by perfect teamwork add to the success of the Companies we represent. Each cent of costs you incur for labor, including your own salaries and expenses, the cost of each piece of mate- rial you apply to or take out of service, and the cost of all tools and supplies used by you in repairing, improving, adding to or taking from roadway, tracks, fences, build- ings, bridges, structures of any kind, tools, engines, cars, and all other physical property, must and does find its way into one of five general accounts. They are : 3G2470 4 - ' \'^ONS'rRuc;>:;QN A.ND MAINTENANCE COSTS. (1) PHYSICAL PROPERTY. (2) OPERATING EXPENSES. (3) INDIVIDUALS AND COMPANIES. (4) MATERIALS AND SUPPLIES. (5) PROFIT AND LOSS. The rules of these Companies and the federal Law tell us to which of these general accounts the costs we incur must be assigned. They also tell us how we can deter- mine the proper account or accounts to which such costs must, under the rules, be charged or credited. From some of the reports you have made for work done it is quite plain that in the past you have not understood, and probably you do not now fully understand, how the costs you incur must be charged. I shall try, in this letter, to tell you the distinctions between the several accounts, what the accounts represent or mean, and what you must do to enable the Accounting Officer to keep the accounts as he is required to keep them. It is not my purpose to require you to keep elaborate books of accounts, but there are things you should know, things you must do, and things you must report to enable the Accounting Officer to correctly record your transactions and to keep the accounts. The lines of distinction between the several accounts are tightly drawn and if we do not observe them we not only disobey the rules of these Companies, but we violate the law, and for such violation, if it be intentional, we are liable to be penalized. PHYSICAL PROPERTY : The general account Physical Property, better known as "Additions and Betterments," is intended to represent the Company's investment in its plant. The account is divided into three subdivisions; they are: (I) ROAD, which represents right of way, roadbed, tracks, buildings, structures, and all other fixed property. (II) EQUIPMENT, which represents engines, cars, and all other rolling stock. CONSTRUCTION AND MAINTENANCE COSTS. 5 These two subdivisions of the general account, Physical Property, are intended to represent the cost of all physical property used in transportation service ; or, in other words, all property used in earning revenues. The other subdivision is known as : (III) OTHER PHYSICAL PROPERTY: It represents the cost of property which is not used in transportation service ; as, for example, if rail be leased to others, its cost must be carried in sub-account III. If a station, roadway or other building be abandoned as a transportation unit and it be rented to others, or if it be used for purposes other than transportation, its cost must be transferred to sub-account III. If a car or other unit of equipment be removed from transportation service and used for purposes other than transportation, its cost must be transferred from sub- account II to sub-account III. If, however, a car be transferred to or set aside for use as a shanty, tool, repair, depot or office car, or for other transportation purposes (except cars transferred from revenue service to work service), its cost must be transferred from sub-account II to sub-account I. These are merely illustrations ; there may be many other pieces and classes of property, the costs of which must be transferred from one account to another when physical changes are made. Each of the three sub-accounts of Physical Property, that is, "Road," "Equipment," and "Other Physical Property" is further subdivided into (a) PROPERTY OWNED, and (b) PROPERTY LEASED, the latter repre- senting property leased from others. Additions, Betterments and Retirements costs incurred on leased property must be reported separately from sim- ilar costs made on owned property; when changes involv- ing Additions, Betterments or Retirements are made on leased property, the name of the Company from whom the property is leased, upon which changes are made, must be shown on your reports. This is very important and the rules governing it must be carefully observed. Some in O CONSTRUCTION AND MAINTENANCE COSTS. charge of Maintenance may not know what property is leased, so it is of great importance that you state in your reports the exact location of all new units added and all changes made in existing units. The costs to repair and maintain leased property operated by these Companies must be ^recorded and re- ported as Operating Expenses of the Company operating it; no distinction need be made in Maintenance costs as between property owned and property leased. OPERATING EXPENSES : The general account Operating Expenses, herein and for purposes of this study called "Maintenance," is in- tended to and must show the costs to the Company to repair and to maintain its physical property. The distinction between costs of physical property and costs to repair and maintain it is tightly drawn and we must try to clearly understand the distinction between them and to correctly assign our costs to the two classes. Maintenance costs are subdivided into: (a) ROADWAY AND STRUCTURES, representing costs to repair and maintain all property of a fixed nature and: (b) EQUIPMENT, representing costs to repair and main- tain engines, cars, and all other rolling stock. These two Maintenance accounts are further subdivided into sub-primary accounts for the purpose of showing the costs to repair and maintain the individual parts of prop- erty used in transportation service. While you have been furnished with copies of the Offi- cial Classification of Operating Expenses showing these sub-primary accounts, with texts, rules, and explanations to guide you in applying Maintenance costs to them, ex- tracts from them are hereto annexed for ready reference and for your general guidance. (See page 35 for Road- way and Structures and page 63 for Equipment.) These extracts serve as illustrations; you must not fail to be guided by the Official Classifications and rules. The correct assignment of Maintenance costs to sub- primary accounts, while second in importance to the assign- CONSTRUCTION AND MAINTENANCE COSTS. 7 ment of costs to Physical Property and to the general Maintenance accounts, is of great importance and deserves your careful consideration. You should study the Official Maintenance Classifications and rules carefully. THE $200.00 OPTION : The Official Classification of Road and Equipment, dated July i, 1914, provides that if the cost of an indi- vidual "Additions and Betterments" project or job be less than $200.00 we may charge such cost to Operating Ex- penses. That option was withdrawn on July i, 1915, and under the existing rules, we must charge that part of all costs which may be properly classed as "Additions and Betterments" to the Property account regardless of the amount of such costs. INDIVIDUALS AND COMPANIES : The general account Individuals and Companies repre- sents cost to us to repair, maintain or construct something for, or for the account of, other railways, firms, corpora- tions or individuals, provided we are not responsible for the causes which make the repairs, maintenance or con- struction necessary. I wish to emphasize here the importance of your know- ing the terms of our contracts with railways, firms, corpo- rations, and individuals under which we maintain roadway, tracks, coal trestles, buildings, and other things for their account. Those who are directly or immediately in charge of such work should also know what costs they incur are chargeable to others. Many contracts provide that we shall maintain certain tracks and other things, for account of the owners of such tracks, etc. In like manner the rules of the Master Car Builders' Association tell us what repairs we make to cars are chargeable to car owners and to other railways respon- sible for damages we repair as well as the prices at which such repairs must be charged. Therefore, it is of prime importance that Section Foremen and Foremen of Bridges 8 CONSTRUCTION AND MAINTENANCE COSTS. and Buildings be advised of contracts or agreements relat- ing to the maintenance of roadway and structures the cost of which, either wholly or in part, is chargeable to others, and that Car Repairers, Foremen of Engine and Car Shops, and Conductors whose duty it is to apply new air hose in place of old or broken hose, new brasses, and such other things which are chargeable to car owners, should understand and know how to apply the M. C. B. rules to work they do on cars and engines. It is necessary for those men to understand the working agreements and rules, because our ability to render bills correctly against those for whom work is done depends entirely upon the correctness of the reports of such work. If work done is not correctly reported we are apt to charge too much, too little or probably nothing at all for repair costs for which we should be paid. "Monuments" or Joint Account Signs are or should be so placed as to show the limits of all tracks used jointly by these and other Companies. Foremen should know which of such joint facilities we are required to maintain. In like manner line posts or signs are or should be placed on all privately owned or operated spur, side, or commer- cial tracks to show where our tracks end and where the private tracks begin. Section and Bridge Foremen must fully observe the rules for reporting work done and materials used between and beyond those signs and posts, because if they do not our "Maintenance" costs will be charged with costs which should be collected from others. If, in an emergency case, work be done and materials be used on a track or facility beyond a sign or post and we do not ordinarily maintain the track or structure, such work and the materials used must be clearly and specifically reported by the Foreman doing it. Let's now look to the other side of the repair and main- tenance question, because it has two sides. While we are repairing and maintaining property of others, other rail- ways are repairing and maintaining parts of our property or are repairing parts of their own property which we use CONSTRUCTION AND MAINTENANCE COSTS. 9 jointly with them. The men who report work done, those who keep the accounts, and those who make bills against us for work they do, are just as apt to make errors in such bills against us as we are to make mistakes in our bills against them; and unless our men who check and O. K. those bills are familiar with the working agreements and rules we are likely to pay too much, too little or nothing at all for services we receive. Therefore, we must be able to correctly determine what we are entitled to collect for work we do for others and what we must pay for work others do for us. Let me, at this time, make this fact clear to you. If under a trackage agreement another railway agrees to pay us rental and a proportion of costs to maintain and repair a track or facility jointly used, we have no right to, nor must we include in our bills against that railway for maintenance costs, any costs incurred by us which are properly classed as "Additions and Betterments" unless the agreement spe- cifically provides that such "Additions and Betterments" costs shall be included. If the contract so provides, the "Maintenance" and "Additions and Betterments" costs must be shown separately on the bills. On the other hand, if others charge us, under similar agreements, with "Addi- tions and Betterments" costs, we must decline to pay the "Additions and Betterments" costs; or if the agreement provides that we should pay such costs, we must demand that they be shown separately in their bills. bft f'gdojslq t^iilo 1$ ftifc^n /ttsrb sgu \Rm aw mierxxi ?:hf;q MATERIALS AND SUPPLIES : This is the account in which is carried the cost of mate- rials and supplies owned. As such things are bought the costs of them, including freight and other expenses, if any, are charged to this account. When materials and sup- plies are drawn for use the costs at which the units drawn are carried in the account are credited to "Materials and Supplies" and charged to the account representing the thing on or for which they are to be used. In repair and renewal work, also in dismantling units or parts of property which have been or are to be retired IO CONSTRUCTION AND MAINTENANCE COSTS. from service, the material recovered, generally known as "salvage" or "scrap," should be separated as between: (a) SERVICEABLE FOR SIMILAR USE BY THE COMPANY. (b) SERVICEABLE FOR CONVERSION INTO OTHER UNITS OR PARTS. (c) SCRAP FOR SALE. All salvage as and when recovered or released should be recorded and reported by kind and quantity. Metal scrap of classes (b) and (c) should be separated and reported as between cast, wrought, malleable, steel, etc. With the exception of rail released from track, which is arbitrarily valued, a fair value consistent with the uses to which it is to be put must be placed upon all salvage recov- ered. If it be of class (#), its value should be based upon current market values for similar units or parts, less a reasonable allowance for condition and wear; if it be of classes (b) and (c), its value should be based on a normal market value of scrap of its kind. The value of salvage recovered must be credited to the account representing the thing or service from which it was released, and charged to the Materials and Supplies account. Some of us may be inclined to "kite" salvage for the purpose of making a good showing in expenses. That is to say, we do not report, when released, some units or parts because we may use them again at other places, and we may believe that by not reporting them as and when released, we can put them back in use and our maintenance costs will be reduced to that extent. If we are guilty, let's stop the practice, because we gain nothing by it; if salvage is not reported as and when released Maintenance will not be credited with its value and nothing is gained by putting it back into use without value. All salvage released or recovered retains the values at which it was released until and unless it be sold or used in "Additions and Betterments" work. To illustrate: A salvage part, when released, is valued at say $20.00, and CONSTRUCTION AND MAINTENANCE COSTS. II taken into the "Materials and Supplies" account at that value; if it be used again in repair work, "Maintenance" must be charged $20.00 for it; if it be used in an "Addi- tions" or a "Betterments" job, the price at which it should be charged should be what a similar article in like condi- tion would cost in the open market; if it be sold, its value to us is what we gt for it. If the market or sale value be more than the value at which it is carried in the accounts, the difference or profit when it is applied or sold must be credited to the account originally credited when the part was released; if the value be less, the differ- ence must be charged to that account. We should and must, for operating purposes, avoid placing high or abnormal prices on salvage. If adjust- ments in values are to be made, let's be in position to adjust "up" and not "down." The present scrap market is abnormally high ; next week or month or year it may be abnormally low. An adjustment of material values which produces a credit to "Maintenance" is much more desirable than one which produces a debit, and a debit is sure to fol- low if our values are too high. PROFIT AND Loss : You are interested in this account only in connection with property abandoned and not replaced. Charges and credits to it must be made only as and when directed by the Chief Accounting Officer. APPROPRIATIONS AND AUTHORITIES : Money to be spent in changing, adding to, taking from, maintaining, and repairing "Physical Property" is author- ized in two ways : 1 i ) Monthly appropriations for labor and ma- terials, generally understood to be for ordinary "Maintenance," and (2) Special appropriations for extraordinary or special work for which individual or special authorities are issued. 12 CONSTRUCTION AND MAINTENANCE COSTS. Reports received indicate that some believe all costs in- curred under the monthly appropriations should be charged to "Maintenance" and that the entire cost of work done under special authorities must be charged to the "Prop- erty" account. The reports also indicate that some under- stand the costs of all work done by Maintenance forces must be classed as and charged to "Maintenance" and that the costs of all work done by Construction forces must be charged to Construction or to the "Property" account. If these beliefs exist in the mind of any one, let's get rid of them because they are wrong. The things you do deter- mine the accounts to which the costs to do them must be charged. In reporting work done under a special authority, you should charge the labor and material costs to the job cov- ered by the authority in such detail and with such clear- ness as will enable the Accounting Officer to properly dis- tribute the costs to the accounts to which they belong. Completion reports are required for each piece of Addi- tions, Betterments, and Retirements work done under both "Maintenance" and "Special Authority" programs, and those reports must give sufficient detail as to final costs to enable a correct distribution of such costs in the accounts. Estimates of, and authority forms for, these extraordi- nary jobs are generally prepared by Resident Engineers or Roadmasters. It would save a great deal of letter writ- ing and telegraphing, and would enable a much more cor- rect distribution of charges, if, in preparing estimates of and forms for extraordinary jobs, more details were given. You should describe fully on the forms what you intend to do; state clearly on them the thing you are to build, giving estimates of the costs of each of its component parts, divided between labor and material. If it be an addition, so state; ?f it be an improvement, give the neces- sary facts as to what it improves, what is to be added and what is to be discarded, with estimated costs and a full description of salvage and to what use the salvage will be put. In brief, the authority form and the supporting CONSTRUCTION AND MAINTENANCE COSTS. 13 papers should so fully describe the job as to make it un- necessary for any one to ask questions about it. PROPERTY COSTS OR VALUES CHANGES IN: As has been previously explained, the general accounts "Physical Property" are intended to represent the Com- pany's investment in its plant and its investment in prop- erty it leases from others. We are required by the rules, as well as by the law, to maintain the integrity of those accounts. Before July i, 1907, under practices which then pre- vailed, and probably since that date through error or mis- understanding of the requirements, the costs of many units or parts of "Physical Property" were, when constructed or when installed in renewals, charged to accounts other than the "Property" accounts and, as a result, there is nothing now in the "Property" accounts to represent them. There are two reasons why you should clearly under- stand this fact now. First, we must try in the future to charge and credit "Property" accounts with all costs with which they are properly chargeable or creditable ; and, sec- ond, as the "Property" accounts are affected by each and every addition, betterment or retirement and in many cases renewal of "Physical Property," we must see to it that in making such changes those accounts are not erroneously increased or decreased. We are required, on the one hand, to add to "Property" accounts the costs of all additions and betterments; and, on the other hand, to take out of those accounts all costs standing in them for units or parts abandoned and not replaced, or units or parts which may be retired in renewals. The old rule that "you cannot take something from nothing" must be clearly understood and literally applied in dealing with property values. To illustrate this point: Suppose that in 1906 we constructed a station building at a cost of $3,000 and charged it to "Maintenance"; we now find it necessary to tear that building down and build 14 CONSTRUCTION AND MAINTENANCE COSTS. a larger one at a cost of $8,000. Our first impulse would be to credit "Property" account $3,000 and charge "Maintenance," less salvage, which is chargeable to "Ma- terials and Supplies," with a like amount, and to charge the $8,000 to "Property" account. If we should do that, the result would be a net increase in "Property" account of $5,000 for an $8,000 structure and a duplicate charge to "Maintenance." "Property" account not having been charged with $3,000 for the old building when it was constructed, cannot properly, nor should it be, credited with anything when the building is retired. A more striking illustration of errors of this kind is the renewal of rail of one weight with rail of a heavier section. Prior to July i, 1907, nearly, if not all, our rail renewal costs were charged to "Maintenance." Let's assume that rail values standing in the "Property" account are on basis of 65-pound section and that in 1900 we renewed with 85-pound and charged it, less salvage, to "Maintenance"; we now renew the 85-pound with 95-pound section; the natural impulse would be to consider 10 pounds as repre- senting the "Betterments," when the fact is "Property" account would be entitled to an addition of 30 pounds per yard. It is fully realized that Maintenance Officers and Agents do not in all cases know what the costs of units or parts retired or replaced were or where they were charged in the accounts when they were installed, and it is not in- tended to place on them the burden of finding this out. It is "up to" the Accounting Officer to "dig out" those facts, but our Maintenance friends must give him the physical facts upon which the correct accounting can be built. Maintenance Officers must, in their reports to the Accounting Officer, describe fully what changes they make in "Physical Property." They should give locations, descriptions of parts or units released, and, when possible, the date the unit or part taken out was put in ; they should also show the class under which the released part or salvage belongs. CONSTRUCTION AND MAINTENANCE COSTS. 1$ If, in ordinary "Maintenance," a part is released and a better part is substituted and it is impossible to determine the cost of the part released, or to ascertain where it was charged when it was installed, we must assume its cost was, when installed, charged to "Property" account, and, for "Betterment" purposes, its value when released is what a similar article new would cost. Let's illustrate this: Suppose we wish to replace an ordinary No. 8 rigid frog with a manganese insert frog costing, say, $100.00. We cannot tell what was paid for the ordinary frog we take out, neither can we tell where its cost stands in the accounts. The price, at the time of renewal of a new ordinary frog of the kind we take out is, say, $35.00. We must then assume that the cost of the frog released was $35.00, and the measure of "Betterments" will be the dif- ference between that cost, $35.00, and the cost of the new $100.00 manganese frog, or $65.00. The labor cost to take out the old and put in the new, less the salvage value (not the assumed value) of the old, must be charged to "Maintenance." The foregoing illustration applies only to minor units or parts renewed in ordinary "Maintenance." Our records should and must tell us the cost of larger units and where they were charged ; the rule as illustrated by the frog must apply only to the smaller units and in cases when and where the facts about the things we take out cannot be ascertained. The theory of "cost to renew in kind" must not be applied when it can possibly be avoided. PHYSICAL PROPERTY CHANGES IN: Changes in "Physical Property" result in one of three things: either an "Addition," a "Betterment," or a "Re- tirement." Generally speaking, a ""Retirement" follows each "Betterment" and in many cases "Retirement" is in- volved when "Additions" are made. To enable you to fully understand and appreciate the Accounting Officer's dependence on your records and on the reports you render, to properly record and state his l6 CONSTRUCTION AND MAINTENANCE COSTS. accounts, you should clearly understand the meaning of these three terms, which, as previously stated, are better known as "Additions and Betterments," and the applica- tion of the work you do to them. So let's study their meaning together. ADDITIONS : If a unit or part be installed where none previously existed, or if something be added to a unit or a part already in existence, the work must be classed as "Addi- tions," and the cost of the material or thing installed and the labor cost to install it must be classed and reported as "Additions." If the cost of a unit or part now in use be retired in the accounts and a better unit or part be put in its place, the cost of the new part and the labor cost to install it must be classed as "Additions," but the labor cost to take out the old part, plus the difference between the cost at which it was originally installed (which should be its retirement value) and its salvage value, must be charged to "Maintenance." Let's illustrate this with the manganese frog. We will assume for this illustration the old frog stands in the "Property" account at $45.00, of which $35.00 repre- sents the cost of the frog and $10.00 labor costs to install; it will cost $5.00 to take it out and its salvage value is $20.00. The manganese frog costs $100.00 and the cost to install it is $10.00. We first credit "Property" account to retire the old frog $45 . oo We charge "Property" account: Cost of new frog Sioo.oo Cost to install it 10.00 no.oo Net "Additions" $65 .00 We then charge "Maintenance" : With cost to retire the old frog . . $45 . oo With cost to remove it 5 . oo $50.00 CONSTRUCTION AND MAINTENANCE COSTS. 17 And we credit "Maintenance" and charge "Materials and Supplies'* with the amount representing the salvage value of the old frog 20 . oo Net charge to "Maintenance" $30.00 This is a good place to illustrate the point made about salvage values, so let's do it Suppose the Roadmaster or the Accounting Officer should, when the old frog is re- leased, reason this way: "Scrap is high and this old frog is fully worth $60.00 as scrap on the present market, and if it be released at $60.00 "Maintenance" will get a net credit of $10.00 instead of a charge of $30.00 if its re- leased value be placed at $20.00, so here goes." If the market stays up until the Purchasing Agent sells the frog, or until it is used in "Additions and Betterments" work, he makes good. But suppose the market goes down and it is sold for $20.00, his "Maintenance" must at that time, and it may be when he can least afford it, "make good" the $40.00. On the other hand, if the frog be released at $20.00 and when sold it brings $60.00, "Maintenance" would get its credit for $40.00 at time of sale. Which do you think is the healthier condition? BETTERMENTS: By "Betterments" is meant the improvement of service or use by taking out an inferior unit or part and putting a better unit or part in its place; or, in other words, the renewal of an inferior unit or part with a better thing, or the substitution of a better part for a worn-out part of an inferior pattern, provided, always, that the cost of the unit or part removed be not retired in the accounts. If the cost of the old be retired the transaction becomes an "Addition." The rules provide, in substance, that when the cost of renewals to be made to an important building or other structure or to any unit of equipment (the car or engine is the equipment unit) will constitute the major portion of l8 CONSTRUCTION AND MAINTENANCE COSTS. its value as renewed, the unit when taken out of service shall be considered as retired; in such cases the renewed unit must be classed as "Additions." While it is not intended to apply this rule to the renewal of minor units or parts, it should be given careful consid- eration in "Betterments" projects involving bridges, build- ings and other structures ; also cars and engines. Bear clearly in mind that in doing things classed as "Betterments" the labor costs (except in unusual or ex- traordinary cases) to take out the old and to put in the new unit or part must be charged to "Maintenance," and that the salvage value of the old part released (which please estimate conservatively) must be credited to "Main- tenance" and charged to "Materials and Supplies." If a worn-out unit or part be released and another part, either new or second-hand, of the same style, type, and pattern, be put in its place the entire cost of the transaction, including labor of taking out the old and putting in the new, must be classed as and charged to "Maintenance"; the value of the old part released must be credited to the same "Maintenance" account and charged to "Materials and Supplies." The measure of "Betterments" costs will be the differ- ence between the cost of the new part installed and the cost at current prices of a new part of the same kind as the old part taken out; provided, always, that the cost of the old part removed and its location in the accounts cannot be determined. While we must adhere to and comply with the rules as nearly as we can, there are and will be cases in connection with "Betterments" where the "rule of reason" must be applied. For instance, in substituting electric for oil-burn- ing headlights the installation of the electric light requires much more labor costs to install than is required to install an oil light, because electrical appliances must be installed with the electric headlight, and no such labor costs were in- curred in putting in the oil light. We, therefore, cannot assume that the labor costs to install the new light is a proper charge to "Maintenance." CONSTRUCTION AND MAINTENANCE COSTS. IQ A few illustrations will help us more clearly to under- stand what "Betterments" means. Assume that the ordinary No. 8 rigid frog previously referred to be worn out and we renew it with a new No. 8 rigid frog of the same type. The entire cost would be "Maintenance"; but if we replace it with a manganese frog and do not retire the old frog in the accounts the transaction would be "Betterments." We would charge the cost of the new frog to "Additions and Betterments" account, say $100.00; determine the value new at current prices of the old No. 8, say $35.00, and credit it to "Addi- tions and Betterments"; the difference, $65.00, would be the measure of "Betterments." We would charge "Main- tenance" with all labor costs in the transaction and credit it with the salvage value of the old frog. If metal carlines be substituted for wooden carlines, we would charge the cost of the metal ones to "Additions and Betterments," determine the cost new of the wooden ones at time they are released, and credit that value to "Addi- tions and Betterments"; the salvage value in this case would be little, if anything. If steel underframes or steel end sills, or if steel or metal parts of any kind be substituted for wooden parts in or under a car, the same process must be followed and the transactions would be "Betterments," provided the work done on the car does not fall within the "Retirement" rule; if it does, then the job must be classed as "Additions." We must not forget that "Betterments," like "Individ- uals and Companies," has two sides ; that is to say, a change in a unit might result in a credit to "Betterments." Let's illustrate it with the manganese frog. Suppose a manga- nese frog, put in some time ago, should prove to be less serviceable than the No. 8 rigid frog and we decide to dis- card the former and substitute a new No. 8. We would charge Additions and Betterments with cost of a new No. 8, say $35 .00 and credit the same account with the cost at time of the change of a new manganese frog, say . . 100 . oo Net credit to "Betterments" $65 .00 20 CONSTRUCTION AND MAINTENANCE COSTS. Labor costs to make the change would be charged to " Maintenance." This is merely an illustration. The same rule should and must apply to other units or parts renewed with dif- ferent types which cost less than the type removed. ( RETIREMENTS : By "Retirements" is meant the tearing up or the destruc- tion of a unit or part heretofore used. "Retirements" are divided into two classes. They are : (1) Units or parts destroyed or removed and not replaced with something else to serve similar purposes. (2) Units or parts destroyed or removed and replaced with something else to serve similar pur- poses. If a sidetrack be abandoned and the metal be taken up, the "Retirement" would fall under the first class. If a station or other building be torn down and a new one be built to take its place, the "Retirement" would be of the second class. If a new right of way fence be built to take the place of an old or inferior fence, the "Retirement" of the old fence would fall under the second class, and so on throughout all the units or parts you take up, destroy or renew. Now note what must be determined and done in the audit. If a unit or part of the first class be retired, its cost standing in the "Property" accounts must be deter- mined and the appropriate "Property" account must be credited with such value; the salvage value of the old material released must be determined and charged to "Material" account. The difference between the amount credited to the "Property" account and the value of the material released, together with the cost of demolishing the property, if demolished by or for account of the Com- pany, must be charged to "Profit and Loss." If the unit or part retired be of the second class, that is, if it be replaced with a new unit or part, the same process CONSTRUCTION AND MAINTENANCE COSTS. 21 must be followed as in retiring parts of the first class, except that the difference between the cost standing in the ''Property" account and the value of salvage recovered, to- gether with the cost of demolishing the property, must be charged to "Maintenance" instead of to "Profit and Loss." Bear in mind that if a unit or part be abandoned, but not destroyed or dismantled, no "Retirement" takes place at that time. To illustrate: If a new station be erected on a new site and the old one is left standing, there would be no "Retirement" until the old building is demolished, sold or otherwise permanently withdrawn from service. If the cost of a unit or part to be destroyed was charged to "Maintenance" when it was originally installed, there will be nothing representing its cost in the "Property" account, and when it is retired no part of its original cost will be deducted from "Property" account or charged to either "Profit and Loss" or to "Maintenance." The salvage, if the unit or part be of the first class, will be cred- ited to "Profit and Loss" and the cost to dismantle it will be charged to the same account. If it be of the second class, the salvage will be credited to "Maintenance" and the cost to dismantle must be charged to "Maintenance." As a general thing, your records will not show original costs, neither will they show how such costs were charged ; they should show or you should know when a unit or a part retired was installed and you should be able to fully describe it. It will be necessary for your reports to the Accounting Officer to show fully what is done in respect to such "Retirement." I must remind you that the rules provide that if the cost to renew a unit or a part constitutes the major part of its cost when renewed, the unit or part to be renewed may be retired in the accounts and the total cost of the new part must be charged to "Additions" if the old part be treated as a "Retirement." It will be our purpose, where and when it is practicable to do so, to retire old units or parts and to treat the instal- lation of the new work as "Additions." The treatment of renewals in this manner will, however, be determined in 22 CONSTRUCTION AND MAINTENANCE COSTS. the Audit Office, and to determine correctly what should be done in each case you must show on your reports to the Accounting Officer all facts connected with each project. DONATIONS : I When right of way or land is donated or given by others upon which tracks or structures are to be built, the money value of such land must be carefully and conservatively estimated and the value thus determined must be included in and considered as a part of the cost of the project. Authority forms for the job must show such estimated values. When cash or other physical values are given or donated in connection with "Additions and Betterments" work they must also be treated as parts of such costs and charged to the "Property" account. Such values must also be shown in the authorities for the project. If a donation or gift be made by a Town, City, County, or State, or by the Federal Government, the value must be credited to "Grants in Aid of Construction" (Account No. 754) . If it be made by an individual, firm or corporation the value must be credited to "Profit and Loss." Now let's sum up and see what all this means anyway. It means this : The Accounting Officer is absolutely dependent upon the aid and intelligent co-operation and support of Construc- tion and Maintenance Officers and their Assistants to cor- rectly keep the "Property" and "Maintenance" accounts of these Companies. Time books kept by Construction, Section, and Bridge and Building Foremen and time cards of and repair cards and records made by Car Repairers and Foremen of Engine and Car Shops are the bases upon which "Prop- erty" and "Maintenance" accounts are built. If those books, cards, and records are incorrectly kept the accounts produced from them will not be correct. Unless those under whose immediate supervision work is done clearly understand what must be reported and how CONSTRUCTION AND MAINTENANCE COSTS. 23 it must be reported, we cannot expect correct accounting, and if accounts are not correctly kept they are not worth much. I earnestly ask your aid and intelligent co-operation in impressing upon all concerned the importance of their knowing and understanding fully the things herein set forth. Your office records and your reports to the Audit Office should be so clear, so full and so complete as to enable the Accounting Officer to record your transactions quickly and correctly. If there is anything in this letter which you do not or cannot understand, do not "ask Mr. Foster," but go direct to the appropriate Accounting Officer with your troubles. Illustrations of the rules and regulations referred to follow. Extracts from the Official Classifications of Mainte- nance of Way and Maintenance of Equipment are appended for your further guidance; please read them, but do not forget that you must not depend entirely on such extracts for information. You should and must study and apply the official rules and classifications. A. H. PLANT, Comptroller. COPY TO ACCOUNTING OFFICERS : You may find something of interest to you in this letter and in the illustrations which follow. Some Illustrations of the Classification of Work Done by the Maintenance of Way and Structures Department. FENCES ROADWAY : If a new fence be built where none existed, entire cost is "Additions." If additional boards, wires or posts be applied to an existing fence, it is "Additions." If an existing fence be repaired, it is "Maintenance." If an existing fence be torn away and a new one built in its place, describe the old fence and say when it was built, and class the entire cost of the new fence as "Additions." RIGHT OF WAY: Clearing, cleaning and ditching old right of way is "Mainte- nance." If such work be done on new right of way acquired for new tracks or lines, it is "Additions." SIDE, PASSING AND SPUR TRACKS: The cost to construct a new and additional side, spur, passing or other kind of a track is "Additions." If a track be extended, it is "Additions" ; but the cost to shift or to connect up the old track with the new is "Maintenance." If a track be shifted from one place to another and its length is not increased, it is "Maintenance." If an existing track be taken up or shortened, the labor cost to take it up is chargeable to "Profit and Loss." The value of salvage must be determined and charged to "Ma- terial" account and credited to "Profit and Loss." The cost of the track standing in "Property" account must be credited to "Additions" and charged to "Profit and Loss." BUILDINGS: If a new and additional building be erected and it does not take the place of one destroyed or torn down, it is "Additions." If it does take the place of one destroyed or torn down, it is "Additions," and the old building must be "retired." If a 25 26 CONSTRUCTION AND MAINTENANCE COSTS. building be enlarged, or if a platform be lengthened or widened, it is "Additions." If a building be improved by taking out an old part and putting in a better part, both "Betterments" and "Maintenance" are involved. Repairing and renewing in kind or restoring parts in like kind is "Maintenance." BRIDGES AND TRESTLES : If a bridge or trestle be strengthened by adding parts to it, it is "Additions." If one or more parts be taken off and better parts put on, both "Betterments" and "Maintenance" are in- volved. If a metal or concrete bridge be built to take the place of a wooden or inferior structure, both "Betterments" and "Maintenance" are involved. If the old structure be retired, the new work will be "Additions." If creosoted timbers be put in a trestle in place of plain timbers, both "Betterments" and "Maintenance" are involved. If a trestle be ballast-decked, the old trestle may be retired and the new charged as "Addi- tions," provided the cost of the ballast-decking forms a major portion of the completed cost; otherwise, treat the new work as "Additions." If bridges, trestles or other openings be filled, asklhe appropriate Accounting Officer for instructions. CULVERTS AND OTHER OPENINGS: If a metal, concrete or other improved or better form of culvert be built to take the place of a wooden or inferior one, the old culvert should be "retired" ; if it is, the cost of the new is "Additions." If the old is not "retired," both "Betterments" and "Maintenance" are involved. If a culvert be built to take the place of an opening, both "Betterments" and "Maintenance" are involved. If an existing culvert be enlarged with same class of material as the old, both "Betterments" and "Mainte- nance" are involved. If it be renewed or repaired in like ma- terial, it is "Maintenance." TUNNELS: If a tunnel be relined with the same class of material, it is "Maintenance" ; but if a wooden or inferior lining be replaced with a brick or better lining, both "Betterments" and "Mainte- nance" are involved. The labor of relining is "Maintenance." CONSTRUCTION AND MAINTENANCE COSTS. 27 CUTS: If a cut be widened beyond its original width, it is "Addi- tions." Dressing, sloping and ditching cuts is "Maintenance." FILLS: If a fill be widened beyond its original width, it is "Addi- tions." The cost to fill to its original, width and to restore it when washed or otherwise destroyed is "Maintenance." GRADES: If grades be reduced or eliminated by cutting down hills, or if sags be raised above original elevation, it is "Additions." BALLAST: If ballast be applied where none previously existed, it and the cost to prepare the track for it are "Additions." If there be a standard depth for ballast and a piece of track be only partly ballasted, and you now put on more ballast to bring its depth up to the standard, it is "Additions." The renewal of ballast in like kind is "Maintenance." If, however, a better ballast be applied where an inferior ballast exists, both "Better- ments" and "Maintenance" are involved. TIES: The renewal of ties, like with like, or the substitution of treated ties for untreated ties, is "Maintenance." If in renew- ing or respacing ties more ties are put in than are taken out, or if additional ties be put in, the cost of the additional ties put in and the labor costs in installing them are "Additions." TIE PLATES, ANTI-CREEPERS, DERAILS AND OTHER TRACK APPLIANCES: If units or parts, including spikes, bolts and other appliances, be put in where none existed, it is "Additions." If improved or better units or parts are substituted for worn-out, broken or inferior units or parts, both "Betterments" and "Mainte- nance" will be involved. (See "Retirements.") SWITCHES, FROGS, CROSSINGS AND OTHER TRACK AP- PLIANCES : (Apply the same rule given for Tie Plates.) 28 CONSTRUCTION AND MAINTENANCE COSTS. RAII,: If worn or broken rail be replaced with rail of the same weight, it is "Maintenance." If rail of one weight be replaced by rail of greater weight or of an improved pattern, the differ- ence between the weight of the rail released and the rail put in is "Betterments," provided always that th entire cost of the rail released is in the Property Account. (See reference to rail, page 14.) The labor costs to renew is "Maintenance." ORDINARY REPAIRS : Ordinary repairs to roadway, track, buildings and structures of every kind, including replacements in kind, are "Mainte- nance." The foregoing are illustrations of some of the things you do both in extraordinary and in ordinary "Maintenance" work. They are given here for the purpose of establishing principles which must be applied to all of the work you do. Bear this clearly in mind : The Official Classifications direct that if in the construction of an "Additions" or a "Better- ments" project it be found necessary to move from one location to another a building, fence, telegraph or telephone pole and wires, or structures of any kind, the cost to move, reset and place in operation must be charged to "Maintenance." If in making track changes, renewing bridges or doing any other roadway work it be necessary to protect traffic or trains by employing watchmen, operators or others, the costs incident thereto must be charged to "Maintenance." Illustrations dealing with Equipment follow. Some Illustrations of the Classification of Work Done by the Maintenance of Equipment Department. EQUIPMENT DESTROYED: If a locomotive, a car or other unit (an engine or a car is the equipment unit) of Equipment be destroyed, or if it be so damaged as to make its repair economically impracticable, the cost of the unit, including "Additions and Betterments" costs applied to it, must be written out of the "Property" account, and the transaction must be treated as a "Retirement." CONDEMNATION OR SALE: If a unit of Equipment be condemned, sold or taken out of service for any cause, its cost, including "Additions and Better- ments" costs applied to it, must be written out of the "Property" account, and the transaction must be treated as a "Retirement." EQUIPMENT TRANSFERRED OR CONVERTED : If a unit of Equipment be transferred from one class to an- other class; for instance, if a box car be converted into a "shanty" car, the cost of the box car, including "Additions and Betterments" costs, must be written out of the "Property" account as a box car, and the transaction must be treated as a "Retirement." The value of the car as a roadway unit must be appraised (consideration being given to the second-hand portions remain- ing therein) and the appraised value must be charged to the "Property" account; this transaction must be classed as an "Addition." If a revenue or a roadway car be set aside for use as an office, depot, tool or oil house, or for any other fixed use or purpose, the cost of the car, including "Additions and Better- ments" costs, must be written out of the "Property" account Equipment, and the transaction must be treated as a "Retire- ment." In conversions of this kind the value of the car as a 29 3O CONSTRUCTION AND MAINTENANCE COSTS. fixed unit for roadway purposes must be determined, and that value must be written into "Property" account Road. This transaction must be treated as an "Addition." EXTRAORDINARY REPAIRS: If a unit of Equipment requires extraordinary repairs or renewals and the repair or renewal costs will constitute the major portion of its value as renewed, the unit to be repaired or renewed should be written out of the "Property" account and the transaction treated as a "Retirement." The value of the unit as repaired or renewed must be appraised and the appraised value written into the "Property" account; this last stage of the transaction must be treated as an "Addition." In appraising Equipment as new which has been transferred, converted, repaired or renewed, we must be careful to see : ist. That the repair or renewal costs will equal the major part of the appraised value of the unit, and 2nd. That the appraised value does not exceed the cost (at current market prices of labor and material) of new equipment of similar type, equal capacity and equal expectation of life in service, less a suitable allowance on account of second-hand parts remaining therein. RETIREMENT VALUES OF EQUIPMENT: Equipment costs are or must be kept and recorded in the Audit Office by individual units. Depreciation is accrued monthly on such costs, and as it accrues depreciation is charged to "Maintenance." From each unit of Equipment destroyed, condemned or otherwise retired there will be more or less salvage. Some of the salvage may be used again in building other units, some of it may be converted into other parts or things, and some of it may be sold as scrap; so that in retiring units of Equipment we have three things to reckon with : ist. Cost of the unit in the "Property" account. 2nd. Accrued depreciation to date of "Retirement." 3rd. Value of salvage recovered. "Property" account is credited with the cost of the unit; "Depreciation" is charged with the accrued depreciation; "Ma- CONSTRUCTION AND MAINTENANCE COSTS. 3! terials and Supplies" is charged with the value of the salvage, and "Maintenance" is charged with the balance. Let us illustrate it in dollars: A unit cost is, say, $1,000; de- preciation accrued, $300 ; salvage, $300. Credit "Property" account $1,000 Charge Depreciation $300 Charge Materials and Supplies (Salvage) .... 300 Charge Maintenance the balance 400 $1,000 $1,000 SALVAGE VALUES EQUIPMENT: If a unit of Equipment be sold, its salvage value is what we get for it as a unit. If it be retired at an estimated salvage value and the selling price be greater or less than the salvage value at which it was retired, "Maintenance" must be credited if it be greater, and charged if it be less than the retired value. This rule likewise applies to scrap sold; what we finally get for scrap fixes its value, and adjustments must be made to that value if it be different from the "Retirement" value. All this is more fully explained in the letter under the heading of "Materials and Supplies" (page 9) ; read it over again. Equipment values are kept by individual units, and it is of great importance that the Accounting Officer be advised promptly and fully of each unit added, destroyed, retired or condemned, and also each unit to or on which "Additions and Betterments" are made, with the details and costs of such "Additions and Betterments." The requirement of the Division of Valuation of the Inter- state Commerce Commission, that an authority form be issued for each change in "Physical Property," applies to all changes in Equipment as well as Road. For our own purposes, the authority forms for changes in Equipment are of equal, if not greater, importance than those for changes in Road, because we keep the Equipment accounts by individual units and deprecia- tion is accrued on unit values. All authorities for "Retire- ments," "Additions/ 1 "Betterments" or "Condemnations" must show kind, class, capacity and individual numbers of both loco- motives and cars. 32 CONSTRUCTION AND MAINTENANCE COSTS. No unit of condemned Equipment should be dismantled until advice of its "Retirement" has been given by the Accounting Officer. The Accounting Officer must be promptly advised of all units of Equipment destroyed on both home and foreign lines. LOCOMOTIVES. HEADLIGHTS SUBSTITUTION OF ELECTRIC FOR OIL: Cost of the electric appliance, including generators, pipe, valves and all other appliances, and labor costs to install must be classed as "Additions." The market value installed of the type and pattern of the oil light at time of the conversion must be classed as "Retirements" and charged to "Maintenance"; credit "Maintenance" with salvage value of old light. FIRE-BOX DOORS : If a pneumatically operated fire-box door or a mechanical stoker be substituted for a hand-operated door, cost of the new appliance plus labor cost to install the new appliance must be classed as "Additions." Retire the old door at the existing market value installed of a new door of same pattern and charge "Maintenance" with a like amount, including labor cost to remove the old. Credit "Maintenance" with salvage value of old. AIR PUMPS ADDITIONAL: If an additional air pump or other appliance be applied, class cost of the appliance and labor costs to install as "Additions." CONVERSIONS : If a locomotive originally constructed to operate with sat- urated steam be converted into a "superheated" type, "Addi- tions," "Betterments" and "Maintenance" will be involved. Cost of the superheated Equipment in its entirety, including labor costs to install, will be "Additions." Cost of the new cylinders, replacement of both flue sheets, larger flues, new type of throttle valve, new front sections of frame, etc., must be classed as "Betterments" ; labor costs to CONSTRUCTION AND MAINTENANCE COSTS. 33 take down the old and install the new unit must be charged to "Maintenance." The old parts released must be appraised at existing market prices of parts new of similar pattern and charged to "Maintenance" to the credit of "Betterments." "Maintenance" must be credited with salvage value of parts removed. If the value of the locomotive after conversion justifies it (see page 30), the original locomotive should be retired, and the entire cost of the converted unit should be classed as "Ad- ditions." FLANGE LUBRICATORS : If flange lubricators be applied where none previously ex- isted, class entire cost as "Additions." MISCELLANEOUS SUBSTITUTIONS: Driving Boxes Steel in place of cast iron. Wheel Centers Steel in place of iron. Buffer Beams Steel in place of wood. Valve Gear A better type for an inferior type. Truck Wheels Steel in place of iron. Reversing Gear Power in place of hand reverse levers. Class all such changes as "Betterments." PASSENGER-TRAIN CARS. METAL PLATES: Applied to end sills, "Additions"; reinforcement of ends, "Additions." TOILETS: Substitution of sanitary for common design toilets, "Better- ments." FREIGHT CARS. Underframes Steel in place of wood. End Sills Steel in place of wood. Body Bolsters Steel in place of wood. Carlines Metal in place of wood. 34 CONSTRUCTION AND MAINTENANCE COSTS. Safety Hopper Door Operating Device in place of old design. Draft Gear Higher capacity in place of old design. Class and treat all such changes as "Betterments." If additional carlines or other appliances be added, class and treat as "Additions." 1 SHOP FACILITIES: If additional machinery be installed, its cost, including cost to install, is "Additions." If a machine or part be worn out and is replaced with one of same type and pattern, the entire cost is "Maintenance," but if it be replaced with one of an improved type, both "Maintenance" and "Betterments" are involved. If additional ordinary small hand tools be bought, "Addi- tions" are involved ; if new tools be bought to replace old ones, it is "Maintenance." The foregoing are merely illustrative of the transactions occurring in connection with Maintenance of Equipment. Bear this in mind : The cost to dismantle condemned or other- wise retired equipment must be charged to "Maintenance" and the value of salvage recovered must be credited to "Mainte- Extracts from the Official Classifications of Maintenance of Way and Structures and Maintenance of Equipment follow. Extracts from the Official Classification Pertaining to Maintenance of Way and Structures THE ACCOUNTS AND TEXTS HERE PRESENTED ARE FOR ILLUS- TRATIVE PURPOSES. You MUST REFER TO AND BE GUIDED BY THE OFFICIAL CLASSIFICATIONS. I. MAINTENANCE OF WAY AND STRUCTURES. SUPERINTENDENCE. This account shall include : PAY OF OFFICERS. The pay of officers directly in charge of or engaged in the maintenance of roadway and structures. Expenses of this class must be charged to Account No 201a (See Note A, which follows.) PARTIAL UST OF OFFICERS. Vice-president. Assistant engineers. Building inspector. Assistant vice-president. Architect. Inspector of roadway General manager. Roadmaster. stores. Assistant general mana- Assistant roadmaster. Supervisor. ger. Master carpenter. Supervisor of track. General superintendent. Assistant master carpen- Supervisor of bridges Assistant general super- ten and buildings. intendent. Master mason. Assistant supervisor. Chief engineer. Superintendent of road- Fire chief. Engineer. way structures. Fire inspector. Division engineer. Superintendent of scales. Sanitary inspector. Bridge engineer. Inspector of mainte- Chief signal engineer. nance. PAY OF CLERKS- AND ATTENDANTS. The pay of clerks and other employees in the offices and on the business cars of offi- cers whose pay is chargeable to this account. Expenses of this class must be charged to Account No . . . . 201b 35 30 MAINTENANCE AND CONSTRUCTION COSTS. PARTIAL LIST OF EMPLOYEES. Chief clerk. Levelmen. Messengers. Draftsmen. Rodmen. Cooks. Clerks. Chainmen. Porters. Stenographers. Axmen. Transitmen. Janitors. 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. Expenses of this class must be charged to Account No .... PARTIAL ITEMS OF EXPENSE AND SUPPLIES. Atlases and maps. Books for office use. Business car service. Fees and dues in as- sociations. Furniture repairs and renewals. Heating. Lighting. Official train service. Periodicals and news- papers. Power. Provisions for busi- ness cars. Rent of offices. Repairs of rented < fices. Telegraph service. Telephone service. Traveling expenses. Water and ice. SUPPLIES FOR TECHNICAL ASSISTANTS. Barometers. Books and maps. Boxes for materials and instruments. Cameras. Camp equipage. Chains for surveyors. Compasses. Curves. Drafting boards. Drafting instruments. Field glasses. Field notebooks. Hatchets. Levels. Magnets. Magnifiers. Marking chalk. Oilstones. Paper, blue-print. Parallel rules. Photographic supplies. Plane tables. Planimeters. Plummets. Protractors. Ranging poles. Reading glasses. Rods for surveyors. Scales. Section liners. Sextants. Slide rules. Stakes. Straightedges. Tally registers. Tape lines. Tee-squares. Telescopes. Thermometers. Thumb tacks. Tracing linens. Transits. Traverse tables. Triangles. Tripods. Verniers. NOTE A. When employees designated above are engaged on con- struction or other work not chargeable to Maintenance of Way and MAINTENANCE AND CONSTRUCTION COSTS. 37 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 attend- ants, 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 em- ployees 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 struc- tures offices is chargeable to account No. 276, "Stationery and printing." ROADWAY MAINTENANCE. This account shall include : CARE OF ROADBED. The cost of repairing roadbed. SOME; OF THE ITEMS OF ROADWAY EXPENSE. Blasting rocks. Oiling roadbed. Building temporary tracks around Removing temporary tracks around slides and washouts. slides and washouts. Constructing and cleaning tile Repairing roadbed damaged by ditches, open ditches, and drains. washouts. Crowning track ties with retaining Removing dangerous rocks. earth. Removing slides. Filling borrow and cattle pits. Restoring roadbed, cuts, fills, and Keeping tracks clear and repairing embankments to standard width. subgrade in case of washouts. Sloping cuts. Landscape gardening along road- Sodding roadway. way. NOTE A. The cost of drains or sewers laid under tracks shall be in- cluded in account No. 208, "Bridges, trestles, and culverts." The cost of landscape gardening within the limits of the grounds around build- ings shall be included in the appropriate repair accounts for buildings. GENERA^ 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 ter- minal 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 engine-house expense accounts. 38 MAINTENANCE AND CONSTRUCTION COSTS. 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. 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 pre- vent cutting, washing, and sliding of embankments. TRAIN SERVICE. The cost of work-train service in con- nection with work pertaining to roadway maintenance. TRACK CHANGES. The cost of roadway work in connec- tion with taking up and relocating tracks. 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." Expenses of these classes must be charged to Account No. . 2 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. Expenses of this class must be charged to Account No 2 SOME OF THE DETAILS OF UNDERGROUND CONTACT CONSTRUCTION. Concrete work. Manhole frames. Slot rails. Drain pipes. Pulleys. Yokes. Manhole covers. Sheaves. 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. TUNNELS AND SUBWAYS. This account shall include the cost of repairing, ventilating, lighting, and watching tunnels and subways for the passage of MAINTENANCE AND CONSTRUCTION COSTS. 3Q trains, and the cost of special tools and supplies furnished in connection with the work. NOTE. The cost of repairs to signals and to roadway and tracks in tunnels shall be charged to the appropriate maintenance of way accounts and not to this account. Expenses of this class must be charged to Account No .... BRIDGES, TRESTLES, AND CULVERTS. This account shall include the cost of repairing (including fuel and supplies used) and watching bridges, trestles, and culverts, including altering and bracing during process of fill- ing, removing old structures in connection with the construc- tion of new structures, dredging and cleaning water channels for protection, and cleaning culverts. The bridges, trestles, and culverts referred to in this account include only structures which carry the carrier's own tracks. Expenses of this class must be charged to Account No. . . . SOME OF THE DETAILS OF BRIDGE STRUCTURES. Abutments. Guard timbers. Bridge signs. Ice breakers. Cofferdams. Painting. Concrete and masonry ends for Pier protection. culverts. Piers and foundations. Cribs. Pipe culverts. Decking, including gravel for fire Retaining walls. protection. Riprap around abutments. Dike protection. Riprap at culvert ends. Drainage systems. Supports. Draw protection. Water channels. Drawbridge engines and machin- Waterproofing. ery. Wing dams. False work. Wing walls. NOTE. When a part or the entire structure of a bridge or trestle is converted, by filling, into an earth embankment, the ledger value of the structure, or of the portion thereof filled, shall be credited to road and equipment account No. 6, "Bridges, trestles, and culverts." In case the bridge is used in lieu of a temporary trestle for the purpose of filling, the estimated cost of such a temporary trestle shall be charged to road and equipment account No. 3, "Grading." The ledger value of the structure, or portion thereof, filled, less the value of the salvage and the 40 MAINTENANCE AND CONSTRUCTION COSTS. estimated cost of trestle charged to road and equipment account No. 3, "Grading," shall be charged to this account. Road and Equipment account No. 6, "Bridges, trestles, and culverts," Note A, provides as follows: W^ien a part or the entire structure of a bridge or trestle is converted, by filling, into an earth embankment, the ledger value of the structure, or of the portion thereof filled, shall be credited to Road and Equipment account No. 6. In case the bridge or trestle is used in lieu of a temporary trestle for the purpose of filling, the estimated cost of such temporary trestle shall be charged to Road and Equipment account No. 3, "Grading." The ledger value of the structure } or portion thereof, filled, less the value of the salvage and the estimated cost of the trestle charged to Road and Equipment account No. 3, shall be charged to Operating Expenses. ELEVATED STRUCTURES. This account shall include the cost of repairing elevated structures and foundations of elevated railway systems. Expenses of this class must be charged to Account No 210 TIES. This account shall include the cost of cross, switch, bridge, and other track ties used in the repairs of tracks. Expenses of this class must be charged to Account No. . . . 212 NOTE A. The cost of labor for unloading, distributing, and putting ties in tracks, the cost of work-train service in connection with the dis- tribution of the ties laid, and the cost of picking up and concentrating or disposing of the ties released shall be charged to account No. 220, "Track laying and surfacing." NOTE B. The excess cost of metal ties applied in place of wooden ties over the cost at current prices of replacing in kind the wooden ties removed shall be charged to road and equipment account No. 8, "Ties." NOTE C. The cost of ties used for repairs of tracks in quarries and ballast pits shall be included in the appropriate clearing accounts, and of ties used for repairs of tracks on car floats in account No. 323, "Floating equipment Repairs." RAILS. This account shall include the cost (less salvage) of rails used in the repairs of tracks; also the difference between the MAINTENANCE AND CONSTRUCTION COSTS. 4! cost (at current prices at time of removal) of heavy rails re- moved and the cost of lighter rails applied in repairs of tracks. . Expenses of this class must be charged to Account No. . . . 214 NOTE A. The cost of labor for unloading, distributing, and putting rails in tracks, the cost of work-train service in connection with the distribution of the rails laid, and the cost of picking up and concen- trating the rails released shall be charged to account No. 220, "Track laying and surfacing." NOTE B. The excess cost of heavier rails or rails of improved quality or type applied in repairs of tracks over the cost, at current prices, of rails of the weight and type or quality released shall be charged to road and equipment account No. 9, "Rails." NOTE C. The cost of rails used for repairs of tracks in quarries and ballast pits shall be included in the appropriate clearing accounts, and of rails used for repairs of tracks on car floats to account No. 323* "Float- ing equipment Repairs." OTHER TRACK MATERIAL. This account shall include the cost (less salvage) of all track material used in the repairs of tracks, other than ballast, ties, and rails. Expenses of this class must be charged to Account No 216 SOME ITEMS OF OTHER TRACK MATERIAL. Angle bars. Nuts. Switch locks and Anticreepers. Offset bars. keys. Connecting rods. Rail braces. Switch points. Derails. Rail chairs. Switch stands. Frog and guard-rail Rail clips. Switch-stand bolts. blocking. Rail joints. Switch targets. Frogs. Rail rests. Switches. Guard-rail clamps. Rail shims. Tie plates. Guard-rail fasteners. Rail splices. Tie plugs. Guard rails at frogs, Splice bars. Tie-rods. on bridges, trestles, Step chairs. Track bolts. and curves. Switch chairs. Track insulators. Main rods. Switch crossings. Track spikes. Nut locks. Switch lamps. NOTE A. The cost of labor and train service for distributing, un- loading, and applying "other track material" used, and the cost of pick- ing up and concentrating the material released shall be charged to ac- count No. 220, "Track laying and surfacing." NOTE B. The excess cost of improved or heavier track material ap- 42 MAINTENANCE AND CONSTRUCTION COSTS. plied for repairs of tracks, under a definite plan of changing standards, over the cost, at current prices, of material of the same weight and quality as that released, shall be charged to road and equipment account No. 10, "Other track material." NOTE C. The cost of "other track material'' used for repairs of tracks in quarries and ballast pits shall be included in 'the appropriate clearing accounts, and of such track material used for repairs of tracks on car floats in account No. 323, "Floating equipment Repairs." BALLAST. This account shall include the cost of gravel, stone, slag, cinders, sand, and like ballast material used, in the repairs of tracks, including the cost of work-train service and of unload- ing the material. (See special instructions, section n of this classification. ) When the ballast taken from a pit is not sufficient to justify the opening of a clearing account, the cost of gravel and quarry rights and cost of sinking test holes shall be included in this account. Expenses of this class must be charged to Account No .... NOTE A. The cost of loading cinders at ash pits shall be charged to account No. 388, "Enginehouse expenses Yard," or to account No. 400, "Enginehouse expenses Train." No charge to cover the value of cinders accumulated by the carrier shall be included in this account. NOTE B. The cost of labor putting ballast in tracks shall be included in account No. 220, "Track laying and surfacing." NOTE C. The excess cost of ballasting tracks over the cost of replac- ing in kind to its maximum height and width the ballast previously put in the roadbed shall be charged to road and equipment account No. n, "Ballast." NOTE D. Earth placed to form a crown over the middle of the track is not to be considered as ballast. NOTE E. The cost of ballast used for repairs of temporary tracks, such as gravel pit or quarry tracks, shall be included in the appropriate clearing accounts. Road and equipment account No. n, "Ballast," provides 'as follows: Cost of ballast applied in excess of ballast required to restore to its maximum height and width the ballast previ- ously put on the roadbed; and the excess cost of improved bal- last used in renewals over the cost to replace in kind to the original height and width the ballast removed, shall be charged thereto. MAINTENANCE AND CONSTRUCTION COSTS. 43 TRACK LAYING AND SURFACING, This account shall include : APPLYING BA^AST. The cost of labor expended in prepar- ing the roadbed, and applying ballast for repairs of tracks. APPLYING TIES. The cost of labor expended in unloading, distributing, and applying ties for repairs of tracks ; in gather- ing up and disposing of the ties released ; and in respacing ties. APPLYING RAILS. The cost of labor expended in unloading, distributing, cutting, slotting, drilling, adzing for, and laying rails for repairs of tracks ; in gathering up and loading rails re- leased; and in adjusting for expansion and contraction of rails. APPLYING OTHER TRACK MATERIAL. The cost of labor ex- pended in unloading, distributing, and applying other track material for repairs of tracks; and the cost of gathering up and loading the material released. TRACK MAINTENANCE. The cost of labor expended in align- ing, surfacing, gauging, and shimming tracks; in tightening track bolts and track spikes ; in restoring rails, ties, and ballast in case of washouts, derailments, and wrecks ; and in taking up tracks. TRAIN SERVICE. The cost of work-train service (except work trains distributing ballast material) in connection with work pertaining to track laying and surfacing. TRACK CHANGES. The cost of track work (exclusive of the cost of track material) in taking up and relocating tracks. OTHER EXPENSES. The cost of track laying and surfacing work not provided for elsewhere, and expenses, such as repair- ing and replacing rail rests, official track inspection train ser- vice, and premiums in connection with track repairs. Expenses of this class must be charged to Account No .... NOTE. Tools and supplies used by track repair men and watchmen shall be charged to account No. 271, "Small tools and supplies." RIGHT-OF-WAY FENCES. This account shall include the cost of repairing right-of-way fences (including permanent snow and sand fences in lieu of ordinary right-of-way fences), farm gates, cattle guards, wing fences, aprons, and hedges, except those around stock-yards, fuel stations, station and shop grounds, and building sites. Expenses of this class must be charged to Account No. . . . 44 MAINTENANCE AND CONSTRUCTION COSTS. SNOW AND SAND FENCES AND SNOWSHEDS. This account shall include the cost of repairing permanent and portable snow and sand fences and spowsheds for the protection of tracks from snow and sand, including rent of land for placing snow and sand fences. Expenses of this class must be charged to Account No. . . . NOTE A. The cost of repairing permanent snow and sand fences which take the place of right-of-way fences shall be included in account No. 221, "Right-of-way fences." NOTE B. The cost of setting up, taking down, and storing portable snow and sand fences shall be included in account No. 272, "Removing snow, ice, and sand." CROSSINGS AND SIGNS. This account shall include the cost of repairing farm passes, highway crossings, and crossings of other railways crossing the carrier's right of way, except railways crossing at grade; also cost of repairing track signs. Expenses of this class must be charged to Account No .... SOME OF THE DETAILS OF GRADE CROSSINGS. Batteries, with track instruments Planking. and connections, including bat- Soil crossing drains. tery renewals. Watch houses at crossings. Crossing gates. Warning signals. Crossing signal bells. Water for sprinkling grade cross- Hose for sprinkling grade cross- ings. ings. Water pipes. Paving. SOME OF THE DETAILS OF OVERGRADE CROSSINGS. Bridge substructures. Drainage systems. Bridge superstructures. Piers, including foundations. Decking, including roadways. Retaining and wing walls, includ- ing foundations. SOME OF THE DF/TAILS OF UNDERGRADE CROSSINGS. Drainage systems. Roadways and sidewalks. Retaining walls, outside of bridge Curbing, abutments. MAINTENANCE AND CONSTRUCTION COSTS. 45 UST OF SOME OF THE SIGNS. Boundary signs. Curve monuments. Elevation monuments. Joint account signs. Maintenance limit signs. Mile signs. Monument stones. Overhead-bridge caution signs. Section signs. Slow or stop signs. Subdivision boards. Tunnel caution signs. Water-station signs. Water-trough signs. Whistle signs. Yard-limit signs. NOTE A. The cost of repairing shop and station overgrade foot- bridges and subways not public highways shall be included in repairs of such buildings. NOTE B. The cost of repairing a bridge or other structure which carries the track of another carrier over the accounting carrier's tracks shall be included in this account. The cost of repairing bridges or trestles, carrying the carrier's tracks over roads, highways, or other railways, shall be charged to account No. 208, "Bridges, trestles, and culverts." NOTE C. The cost of repairing bridge signs shall be included in ac- count No. 208, "Bridges, trestles, and culverts." STATION AND OFFICE BUILDINGS. This account shall include the cost of repairing station and office buildings, fixtures, and appurtenances (including those for heating and lighting), used by the carrier in its operations; also the cost of maintaining grounds appurtenant to such buildings. Expenses of this class must be charged to Account No . . . PARTIAL UST OF STATION AND OFFICE STRUCTURES AND DETAILS. Baggage rooms. Breakwaters for pro- tection of buildings. Buildings and rooms for trainmen. Buildings on piers. Call bells. Coal bins. Coal-transfer machin- ery (not on coal and ore wharves). Coal trestles (not at fuel stations). Commissarial build- ings. Drainage and sewer systems. Dwellings (except for roadway employees). Eating houses. Electric wiring. Elevators and machin- ery. Express buildings. Fences. Fire-engine houses. Fire extinguishers (permanent). Fire hydrants and pipe Unes. Freight cranes. Freight derricks. Freight handling ma- chinery. Freight houses. Garages. Gas-supply systems. General office build- ings. Grain cribs. Grain elevators. Grain warehouses. Greenhouses. Hay houses. Heating plant. 227 MAINTENANCE AND CONSTRUCTION COSTS. for fix- Hedges. Hoisting engines, handling freight. Hose, fire, and tures. Hose houses. Hose reels. Ice houses. Lighting plant. Mail cranes. Milk stands. Office buildings. Ore transferring ma- chinery (not on coal and ore wharves). Outhouses. Pavement in ground limits. Payments for munici- pal fire protection. Pipe lines, car heat- ing, at stations. Platforms, freight. Platforms, passenger, including planking between tracks. Power distribution systems, interior. Reading rooms. Rooms for Y. M. C. A. Scale houses. Sidewalks. Sprinkler systems (fire protection). Stables. Station footbridges (not highway cross- ings). Station intertrack fences. Station platforms. Station signs. Station stairways. Station subways (not 1 highway crossings). Station power houses. Stations, freight. Stations, passenger. Stock pens. Storehouses. Telegraph offices. Telpher systems. Track scales. Transfer houses. Transfer platforms. Waiting rooms. Warehouses. Washrooms. Water-supply systems. . Incidental cleaning, including the cost of cleaning snow from roofs, when done by station or office employees, shall not be included in this account. ROADWAY BUILDINGS. This account shall include the cost of repairing roadway shops and other roadway buildings, including drainage, water, gas, and sewer pipes and their connections, machinery and other apparatus, fixtures, and furniture in the buildings; also the cost of maintaining the grounds appurtenant to such buildings. \ Expenses of this class must be charged to Account No. . . PARTIAI, UST OF ROADWAY STRUCTURES. 229 Bins for material. Blacksmith shops. Boarding houses. Breakwaters for pro- tection of buildings. Carpenter shops. Dwellings for roadway employees. Fire-engine houses. Frog shops used solely for repairs of track material. Hand-car houses. Lumber sheds. Offices. Outhouses. Planing mills. Rail shops used solely for repairs of track material. Repair shops. Scrap bins. Section dwelling houses. Stables. Storehouses. Tool houses. Watch houses. Wells at section houses. MAINTENANCE AND CONSTRUCTION COSTS. 47 NOTE A. The cost of repairing signal and interlocker buildings and their appurtenances shall be included in account No. 249, "Signals and interlockers." NOTE B. Incidental cleaning, including the cost of cleaning snow from roofs, when done by employees regularly working in the build- ings, shall not be included in this account. WATER STATIONS. This account shall include the cost of repairing water sta- tions, fixtures, and appurtenances used by the carrier in its operations, and the cost of maintaining the grounds appurte- nant to such stations. Expenses of this class must be charged to Account No . . . 231 PARTIAL LIST OF WATER STATION STRUCTURES AND DETAILS. Boilers. Breakwaters for pro- tection of buildings. Buildings on piers. Cisterns. Dams. Fences. Outhouses. Penstocks. Pump houses. Pumps. Purifying plants. Reservoirs. Settling basins. Stationary engines." Steam pipes. Tanks and founda- tions. Track tanks. Tubs. Water cranes. Water-pipe lines. Water-treating plants. Wells. Windmills. NOTE. Incidental cleaning, including the cost of cleaning snow from roofs, when done by water station employees, shall not be included in this account. FUEL STATIONS, This account shall include the cost of repairing fuel stations, fixtures, and appurtenances used by the carrier in its opera- tions, and the cost of maintaining the grounds appurtenant to such stations. Expenses of this class must be charged to Account No. . . , 233 PARTIAL LIST OF FUEL STATION STRUCTURES AND DETAILS. Breakwaters for pro- tection of buildings. Buckets. Buildings on piers. Coal buggies. Coal hoists and foun- dations. Coal pockets and chutes. Dumping machinery. Elevating machinery. Fences. Fire hydrants and pipe Fire hose and fixtures. Fuel houses. Fuel-oil columns. Fuel-oil plants. Fuel-oil pumps. Fuel-oil sumps. Fuel-oil tanks. MAINTENANCE AND CONSTRUCTION COSTS. Fuel platforms. Fuel storage pits. Fuel wharves. Inclines. Locomotive cranes at fuel stations. Outhouses. Scales. Sheds. Stationary engines. Tipple cars. Weighing apparatus. Wood racks. NOTE. Incidental cleaning, including the cost of cleaning snow from roofs, when done by fuel station employees, shall not be included in this account. SHOPS AND ENGINEHOUSES. This account shall include the cost of repairing shop and enginehouse buildings, fixtures, and appurtenances used by the carrier in repairing and preparing equipment, and the cost of maintaining the grounds appurtenant to such buildings. Expenses of this class must be charged to Account No. . . 235 SOME OF THE SHOP AND ENGINEHOUSE STRUCTURES AND DETAILS. Air-compressor houses. Ash pits and pockets. Ash plants. Bins for material. Blacksmith shops. Breakwaters for pro- tection of buildings. Buildings on piers. Car sheds. Car shops. Carpenter shops. Cinder pits. Cinder pockets. Cinder handling de- vices. Drop pits. Dry houses. Electric-power distri- bution systems with- in buildings. Enginehouses. Fire-engine houses. Fire extinguishers (permanent"). Fire hydrants and pipe lines. Footbridges (not pub- lic highways). Foundries. Gas- compressor houses. Heating plants. Heating and ventilat- ing systems. Hose, fire, and fixtures. Hose houses. Ice houses. Laboratories. Lighting plants. Lumber sheds. Machine shops. Material and supply truck tracks. Motor-crane tracks. Offices, shop. Oil houses. Outhouses. Paint shops. Payments for munici- pal fire protection. Pipe lines, air, interior. Pipe lines, car-heating. Pipe lines, gas, inte- rior. Planing mills. Platforms, shop and yard. Repair shops. Sand houses. Scale houses. Scrap bins. Sidewalks. Sprinkler systems (fire protection). Stables. Steam distribution systems, interior. Storehouses. Tanks, gas. Tanks, oil. Test rooms. Tin shops. Tool houses. Track scales. Transfer tables. Turntables. Upholstering shops. Warehouses. Wash rooms. Watch houses. MAINTENANCE AND CONSTRUCTION COSTS. 49 NOTE A. The cost of repairing machinery and other apparatus, in- cluding special foundations, in shops for maintenance of equipment shall be included in account No. 302, "Shop machinery." NOTE B. Incidental cleaning, including the cost of cleaning snow from roofs, when done by shop employees, shall not be included in this account. GRAIN ELEVATORS. This account shall include the cost of repairing structures for the transfer, treatment, and storage of grain, including con- veyors, machinery and fixtures; also the cost of maintaining the grounds appurtenant to such buildings. The buildings referred to in this account are large elevators in which a regular grain business is handled or grain is stored for various owners. Expenses of this class must be charged to Account No 237 NOTE A. Small storage elevators at way stations, where the freight is received for shipment, etc., are classed as station buildings. NOTE B. Incidental cleaning, including the cost of cleaning snow from roofs, when done by grain elevator employees, shall not be in- cluded in this account. STORAGE WAREHOUSES. This account shall include the cost of repairing storage ware- houses, including machinery and fixtures therein ; also the cost of maintaining the grounds appurtenant to such warehouses. The buildings referred to herein are not the ordinary freight warehouses or stations where freight is received for shipment, etc., but are warehouses in which merchandise is stored and which the carrier operates as storage warehouses. Expenses of this class must be charged to Account No .... 239 NOTE. Incidental cleaning, including the cost of cleaning snow from roofs, when done by storage warehouse employees, shall not be included in this account. WHARVES AND DOCKS. This account shall include the cost of repairing wharves located at marine, lake, or river docks ; dredging waterways to approaches and around such structures, including removal of dredged-out material ; and cutting ice in and around docks and 5O MAINTENANCE AND CONSTRUCTION COSTS. wharves to prevent damage; also cost of repairs of cribwork, racks, or caissons for preserving the depth of water in docks ; and cost of repairs of guards, piling, and other protection against damage by drift or ice. Expenses of this class must be charged to Account No. . . SOME OF THE DETAILS OF WHARVES AND DOCKS. Bridge pontoons. Bulkheads. Caissons. Cribwork. Dry docks. Ferry-bridge cry. Ferry bridges. Ferry racks. Ferry slips. machin- Jetties and inclines. Transfer-bridge ma- chinery. Transfer bridges. NOTE A. The cost of repairing buildings, tracks, and machinery (not bridge machinery) on wharves and piers shall be charged to the appro- priate expense accounts. NOTE B. The cost of repairing coal and ore wharves shall be charged to account No. 243, "Coal and ore wharves." NOTE C. Incidental cleaning, when done by regular wharf employees, shall not be included in this account COAL AND ORE WHARVES. This account shall include the cost of repairing wharves and docks, including the cost of repairing conveyors, machinery, and fixtures for the transfer, treatment, blending, or storage of coal or ore. Expenses of this class must be charged to Account No . . . NOTE A. The structures referred to in this account do not include small transfer or storage trestles at stations where coal is stored or delivered, such trestles being classed as station buildings. NOTE B. Incidental cleaning, including the cost of cleaning snow from roofs, when done by coal and ore wharf employees, shall not be included in this account. GAS PRODUCING PLANTS. This account shall include the cost of repairing gas produc- ing and gas compressing plants, including the machinery and appliances in such plants; also the cost of maintaining the grounds appurtenant to such plants. Expenses of this class must be charged to Account No. . . . MAINTENANCE AND CONSTRUCTION COSTS. 51 NOTE. Incidental cleaning, including the cost of cleaning snow from roofs, when done by employees of the gas producing plant, shall not be included in this account. TELEGRAPH AND TELEPHONE LINES. This account shall include : TELEGRAPH. The cost of repairs of telegraph outside plant and terminal equipment for which the carrier is responsible, including the cost of work-train service and of special tools provided for the work. TELEPHONE. The cost of repairs of telephone outside plant and terminal equipment for which the carrier is responsible, including the cost of work-train service and of special tools provided for the work. Expenses of this class must be charged to Account No 247 SOME OF THE DETAILS OF TELEGRAPH AND TELEPHONE TERMINAL EQUIPMENT. Batteries. Fuses and mechanical protectors. Cables and wires, interior. Rectifiers. Conduits, interior. Rheostats. Connecting wires. Sending and receiving instru- Current-controlling instruments. ments. Electric generators and motors. Switchboards. Electric meters. Testing outfits. Engines, stationary. Transformers. i SOME OF THE DETAILS OF TELEGRAPH AND TELEPHONE OUTSIDE PLANT. Aerial attachments. Guy wires. Braces. Insulators. Brackets. Poles. Cable boxes and appurtenances. Submarine cables and connections. Cables and wires, aerial. Telephone pole boxes. Conduits and appurtenances. Towers. Cross arms. Underground cables and connec- Guy stubs. tions. NOTE. -The salaries, rent, other office expenses, and traveling ex- penses of superintendents of telegraph and telephone, their assistants, clerks, and attendants, when engaged both in maintaining and operating telegraph and telephone lines, shall be apportioned equally between this account and account No. 407, "Telegraph and telephone operation." MAINTENANCE AND CONSTRUCTION COSTS. SIGNALS AND INTERLOCKERS. This account shall include the cost of repairing and main- taining signals and interlockers governing the movement of trains, including salaries, rent, and other office expenses, and the traveling expenses of division signal engineers, signal supervisors, their assistants, clerks, and attendants ; also the cost of special tools furnished for such work. Expenses of this class must be charged to Account No. . . SOME OF THE DETAILS OF SIGNALS AND INTERLOCKERS. Air compressors. Batteries. Boilers. Distant signals. Dynamos. Engines, stationary. Gates at crossings of other rail- roads. Home signals. Interlocker buildings. Interlocker machinery. Interlocker mechanism. Levers. Power transmission lines. Rail bonds. Railway-crossing signals. Semaphores. Signal and switch levers. Signal arms. Signal blades. Signal bridges. Signal buildings. Signal lamp brackets and connec- tions. Signal lamps. Signal machinery. Signal poles and foundations. Signal pulleys and foundations. Special appliances. Station signals. Train-order signals. Wiring. Relays. NOTE. The cost of repairing track material, such as switches, special track fastenings, split rails, and frogs used in connection with inter- lockers, shall be charged to account No. 216, "Other track material." POWER PLANT DAMS, CANALS, AND PIPE LINES. This account shall include the cost of repairing dams, canals, and pipe lines and accessories devoted to the utilization of water power for the operation of trains and cars, and to fur- nish power, heat, and light for general purposes. Expenses of this class must be charged to Account No . . . SOME OF THE DETAILS OF DAMS, CANALS, AND PIPE LINES. Aqueducts. Bridges. Fences. Footbridges. Fore bays. Gates. Girds. Inlet valves. Penstocks. Reservoirs. Roadways. Sluices. Valves. Viaducts. Walls. MAINTENANCE AND CONSTRUCTION COSTS. 53 POWER PLANT BUILDINGS. This account shall include the cost of repairing the build- ings of power plants which furnish power for the operation of trains and cars, and furnish power, heat, and light for general purposes, including distinct power plant buildings at shops; drainage, water, and sewer pipes and their connections ; miscel- laneous furniture and fixtures ; and the cost of maintaining the grounds appurtenant to such buildings. Expenses of this class must be charged to Account No .... 253 NOTE A. The cost of repairing machinery and other apparatus in general power plants shall be included in account No. 304, "Power plant machinery." NOTE B. Incidental cleaning, including the cost of cleaning snow from roofs, when done by power plant employees, shall not be included in this account POWER SUBSTATION BUILDINGS. This account shall include the cost of repairing buildings of power substations; including storage-battery stations, used to transform power for the operation of trains and cars, and to furnish power, heat, and light for general purposes ; drainage, water, and sewer pipes and their connections ; fixtures, includ- ing wiring for lighting and heating; and miscellaneous furni- ture and fixtures; also the cost of maintaining the grounds appurtenant to such buildings. Expenses of this class must be charged to Account No. . . . 255 NOTE A. The cost of repairing substation apparatus for transform- ing or storing power in power substations shall be included in account No. 306, "Power substation apparatus." NOTE B. Incidental cleaning, including the cost of cleaning snow from roofs, when done by substation employees, shall not be included in this account. POWER TRANSMISSION SYSTEMS. This account shall include the cost of repairing systems for transmitting high-tension power from power houses to the point where transformed for use, including the cost of work- train service and special tools furnished for such work. Expenses of this class must be charged to Account No. . . . 257 54 MAINTENANCE AND CONSTRUCTION COSTS. SOME OF THE DETAILS OF POWER TRANSMISSION SYSTEMS. Cables. Cut-outs (not at power houses and substations). Feed wires. Guard wires. Insulators and connections. Span wires. Switchboards (not at power houses and! substations) . Transformers (not at power houses and substations). NOTE A. The cost of repairing track material, such as insulated rail splices used in connection with transmission system, shall be charged to account No. 216, "Other track material." NOTE B. When the electric current generated or received is changed by means of (a) rotary converters, (fr) motor generator sets, or (c) static transformers (substation apparatus), that portion of the line or outside conductor system carrying current other than the operating kind or voltage shall be classed as transmission system. When the elec- tric current is generated or received and used substantially unchanged in voltage and kind, the line or outside conductor system, including any feeders, trolley wires, booster circuits, and supplementary return, shall be classed wholly as distribution system. Tie lines between generating stations and substations should follow the same rule as other lines. POWER DISTRIBUTION SYSTEMS. This account shall include the cost of repairing electric dis- tribution systems, whether overhead, surface, or underground, for conveying low-tension power for propelling trains and cars, and for power, heat, light, and general purposes. Expenses of this class must be charged to Account No SOME OF THE DETAILS OF POWER DISTRIBUTION SYSTEMS. Rail insulating devices. Span wires. Steam pipe lines. Switchboards (not at power houses and substations). Third rail. Third-rail braces. Third-rail insulation and protec- tion. Third-rail supports. NOTE A. The cost <5f repairing and replacing track material, such as insulated rail splices, used in connection with electric distribution sys- tems, shall be charged to account No. 216, "Other track material." Compressed-air pipe lines. Cut-outs (not at power houses and substations). Feed wires. Guard wires. Insulators and connections. Overhead trolley wires. Rail bond plugs. Rail bonds. MAINTENANCE AND CONSTRUCTION COSTS. 55 NOTE B. The cost of repairing that portion of distribution systems located in shop buildings and station and office buildings shall be in- cluded in the cost of repairing the buildings. The cost of repairing distribution systems in plants used exclusively for operating signals and interlockers shall be included in account No. 249, "Signals and interlockers." NOTE C. When the electric current generated or received is changed by means of (a) rotary converters, (b) motor generator sets, or (c) static transformers (substation apparatus), that portion of the line or outside conductor system carrying current 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 any feeders, trolley wires, booster circuits, and supplementary return, shall be classed wholly as distribution system. Tie lines between generating stations and substations should follow the same rule as other lines. POWER LINE POLES AND FIXTURES. This account shall include the cost of repairing and replac- ing electric line poles, cross arms, and insulating pins; brack- ets and other pole fixtures ; and braces and other supports for holding poles in position ; also the cost of repairing structures primarily for supporting the overhead electric construction. Expenses of this class must be charged to Account No. . . . 261 UNDERGROUND CONDUITS. This account shall include the cost of repairing conduits required for underground electric wires and cables of electric railway construction, including manholes, sewer connections, sewer traps, and all other material necessary for the mainte- nance of the conduit system. Expenses of this class must be charged to Account No .... 263 MISCELLANEOUS STRUCTURES. This account shall include the cost of repairing permanent structures, not provided for elsewhere, including the cost of repairing all furniture and fixtures to equip them for use. It shall also include the cost of maintenance of the grounds appurtenant to such structures. Expenses of this class must be charged to Account No .... 265 56 MAINTENANCE AND CONSTRUCTION COSTS. NOTE A. When separable the cost of maintaining structures which are rented to other companies or individuals shall be charged to the income account in which is included the rent received for use of the structures. NOTE B. Incidental cleaning, including the cost of cleaning snow from roofs, when done by employees regularly working in' miscellaneous buildings, shall not be included in this account. PAVING. This account shall include the cost of repairing paving about tracks in public highways and streets through which the carrier's tracks are laid. Expenses of this class must be charged to Account No. . . NOTE. The cost of repairing paving upon the carrier's lands, within the grounds of buildings or other structures, shall be included in the accounts provided for the repairs of the structures, and the cost of repairing paving upon the carrier's right of way at crossings to account No. 225, "Crossings and signs." ROADWAY MACHINES. This account shall include the cost of repairing roadway machines which are used for the repairs of roadway and structures. Expenses of this class must be charged to Account No. . . . PARTIAL LIST 0? ROADWAY MACHINES. Boilers, portable. Cars, hand. Cars, lever. Cars, motor inspection. Cars, push. Cars (small), crane, for yards and general use. Concrete mixers. Ditching machines. Dredging machines. Engines, portable. supply Grading outfits. Hydraulic outfits. Jacks, hydraulic. Log loaders. Pile drivers. Plows, unloading. Rail unloaders. Rock crushers. Steam rollers. Timber trucks. Velocipedes. NOTE A. The cost of repairing machines in the maintenance of equipment shops shall be included in account No. 302, "Shop ma- chinery," as provided for therein. NOTE B. The cost of repairing roadway machines, such as pile driv- ers, log loaders, hoisting engines, and concrete mixers, when perma- MAINTENANCE AND CONSTRUCTION COSTS. 57 ncntly mounted for movement on carrier's tracks, shall be included in account No. 326, "Work equipment Repairs." SMALL TOOLS AND SUPPLIES. This account shall include : ROADWAY AND TRACK TOOLS. The cost of roadway tools (except special tools provided for elsewhere), including the cost of repairing such tools. PARTIAL LIST OF ROADWAY AND TRACK TOOLS. Adzes. Anvils. Augers. Axes. Ballast forks. Bars, claw. Bars, crow. Bars, lining. Bars, pinch. Bars, raising. Bars, tamping. Braces and bits. Brooms. Brush hooks. Cable stretchers. Cables. Cans, oil. Cans, water. Cant hooks. Chains. Chisels, track. Chisels, wood. Curbing hooks. Dippers. Drawing knives. Drill bits. Drills (portable). Flags, signal. Furnaces (portable). Grindstones. Hammers, napping. Hammers, paving. Hammers, spiking. Handles for tools. Hatchets. Hoes. Jack levers. Jacks, ratchet. Jacks, screw. Jacks, track. Kegs, water. Ladders. Lanterns and fixtures. Lawn mowers. Levels. Lines for ditching. Nippers. Oilstones. Padlocks. Pails, water. Paint brushes. Picks, clay. Picks, tamping. Pike poles. Post-hole diggers. Post-hole tampers. Punches. Rail benders. Rail tongs. Rakes. Rope. Saws, crosscut. Saws, hand. Scrap boxes. Scythes. Shovels. Sickles. Sledges. Spades. Spike mauls. Spike pullers. Spot boards. Squares. Straightening ma- chines. Tape lines. Thermometers for laying rail. Tongs. Tool boxes. Torches. Track gauges. Track levels. Vises. Weed spuds. Wheelbarrows. Whetstones. Wood mallets. Wrenches, monkey. Wrenches, track. ROADWAY AND TRACK SUPPLIES. The cost of supplies con- sumed in connection with the operation of roadway machines while used in repairs of roadway and tracks ; and cost of sup- 58 MAINTENANCE AND CONSTRUCTION COSTS. plies used by trackwalkers, track watchmen, and roadway and track repair men. SOME ITEMS OF ROADWAY SUPPLIES. Alcohol for hydraulic jacks. Fuel for heating tool and other section houses. Fuel for portable forges used in roadway and track work. Gasoline for motor cars. Oatmeal and ice for drinking water used by roadway and track repair men. Oil and waste for hand cars, lever cars, motor inspection cars, and push cars. Oil and wicks for lanterns used by trackwalkers, track watchmen, and roadway and track repair men. Oil and wicks for lighting tool and other section houses. Torpedoes used by trackwalkers, track watchmen, and roadway and track repair men. Water for section houses. Expenses of these classes must be charged to Account No.. REMOVING SNOW, ICE, AND SAND. This account shall include the cost of keeping track and roadway clear of snow, ice, and sand. It shall include cost of preventing accumulation, such as the cost of distributing, setting up, inspecting, taking down, and regathering portable snow and sand fences; and cost of tools furnished for the purpose ; also cost of storing fences. It shall include cost of removing accumulations of snow, ice. and sand; cost of snow-plow and flanger service, and of work-train service; cost of applying and removing flangers from locomotives and cars, and of slatting pilots ; cost of salt to keep switches clear ; and cost of meals and lodging for men employed in removal service. Expenses of this class must be charged to Account No ASSESSMENTS FOR PUBLIC IMPROVEMENTS. This account shall include the carrier's proportion of the cost of repairing public improvements, such as sewers, curbs, gutters, pavement and sidewalks, including costs of such re- pairs made under Government regulations by the carrier's own employees. Expenses of this class must be charged to Account No MAINTENANCE AND CONSTRUCTION COSTS. 59 NOTE. The cost of repairs, required by Government authority, to paving between rails and adjacent to tracks laid through public high- ways shall be included in account No. 267, "Paving." INJURIES TO PERSONS. This account shall include expenses on account of injuries to persons which occur directly in connection with the main- tenance of way and structures, including injuries occurring in connection with the operation of work trains in such service, and injuries caused by defective highways within the right of way. It shall also include expenses on account of injuries to employees incurred while demolishing structures, the mainte- nance of which would be chargeable to Maintenance of Way and Structures ; services of employees and others called in con- sultation in connection with claim adjustments; pay and ex- penses of employees while engaged as witnesses at inquests and lawsuits ; and a suitable proportion of donations made to hospitals. Expenses of this class must be charged to Account No 274 SOME OF THE ITEMS OP EXPENSE. Artificial limbs. Hospital attendance. Carriage fees. Medical and surgical services. Claim adjusters' and clerks' serv- Medical and surgical supplies. ices. Notarial fees. Claim adjusters' office expenses. Nursing. Compensation for injuries or Railway transportation. death. Undertakers' services. Final judgments, including plain- Undertakers' supplies. tiffs' court costs. Witnesses' fees and expenses at Funeral expenses. inquests and lawsuits. NOTE A. Expenses incident to personal injury suits, not otherwise provided for, shall be included in account No. 454, "Law expenses." NOTE B. Amounts donated by a carrier to hospitals shall be dis- tributed, 25 per cent to account No. 274, "Injuries to persons"; 25 per cent to account No. 332, "Injuries to persons"; and 50 per cent to account No. 420, "Injuries to persons." NOTE C. The pay, office rent, office expenses, and other expenses of claim adjusters, claim clerks and others in charge of or engaged in connection with claim cases, when not assignable to a distinct class of 6o MAINTENANCE AND CONSTRUCTION COSTS. claims, shall be apportioned equally among the several classes of claims over which they have jurisdiction or in connection with which they are engaged. INSURANCE. 1 This account shall include premiums, except reinsurance premiums, for insuring the carrier against loss through injuries to persons or damage to or destruction or loss of property, whether caused by fire, accident, or other cause, when such loss to the carrier would be chargeable to Maintenance of Way and Structures ; also premiums on fidelity bonds of employees whose pay is chargeable to Maintenance of Way and Struc- tures. (See special instructions, section 18 of this classifica- tion.) Expenses of this class must be charged to Account No. . . NOTE. The premiums paid by the carrier to its insurance fund shall be credited to an insurance reserve account, to which account shall be charged the amount of all claims for injuries to persons and damages to the property covered by its insurance. To such account shall also be charged all reinsurance premiums paid to insurance companies, and to it shall be credited all amounts recovered from insurance companies in reimbursement for losses under such reinsurance. vSTATlONERY AND PRINTING. This account shall include the cost of stationery and print- ing used in connection with maintenance of way and struc- tures. Expenses of this class must be charged to Account No. . . PARTIAL UST OF STATIONERY AND PRINTING ITEMS. Adding machines. Addressographs and supplies. Arm rests. Binders. Blank books. Blotters. Blotting paper. Bristol board. Calculating machines. Calendars. Carbon paper. Cardboard. Cards, blank and print- ed. Circulars. Computing tables. Copy (impression) books. Copying brushes. Copying presses. Crayons. Cross-section books. Cross-section paper. Cyclostyles. Dating stamps and rib- bons. Dictaphones. Dictographs. Drawing paper. Duplicators. Electric pens. Envelopes. Erasers, rubber and steel. Eyelet punches. MAINTENANCE AND CONSTRUCTION COSTS. 6l Shears. Shipping tags. Shorthand notebooks. Sponge cups. Sponges. Stamps, impression. Stylographs. Tablets, blank and printed. Tape. Telegraph blanks. Tissue (impression) paper. Tracing cloth. Tracing paper. Twine. Typewriters and rib- bons. Wage tables. Wastebaskets. Water colors. Water holders. Wrapping paper. Wringers for copying presses. . The cost of dicfionaries, periodicals, technical books, etc., shall he included in the appropriate superintendence accounts. Eyelets. Paper fasteners. File boxes, paper. Paper files. Forms, blank and Paper weights. printed. Papyrographs. Glass pens. Pencil sharpeners. Hectographs. Pencils for writing and Indexes. drawing. Ink for writing and Penholders. drawing. Penracks. Inkstands. Pens for writing and Invoice books. drawing. Legal cap paper. Phonographs and rec- Letter paper. ords. Manifold paper. Pins. Manifold pens. Postage. Mimeographs. Profile books and Mucilage. paper. Mucilage brushes. Punches (not conduc- Neostyles. tor's or baggage- Note paper. men's). Notices. Rubber bands. Numbering stamps. Rubber stamps. Oil paper. Rulers. Paper. Ruling pens. Paper baskets. Scrapbooks. Paper clips. Sealing wax. Paper cutters. Seals. OTHER EXPENSES. This account shall include all expenses in connection with maintenance of way and structures not provided for elsewhere. Expenses of this class must be charged to Account No. . . 277 SOME Of THE ITEMS OF EXPENSE. Pay and expenses of maintenance of way employees attending confer- ences with officers in connection with wage disputes. Fees paid arbitrators in wage disputes with maintenance of way em- ployees. Payments to maintenance of way employees for time absent on account of sickness, when not compensation for personal injuries. Gratuities paid to persons for discovering defective rails, etc. 62 MAINTENANCE AND CONSTRUCTION COSTS. THESE COMPANIES' PROPORTION OF MAINTAINING JOINT TRACKS, YARDS, AND OTHER FACILITIES BY OTHERS. This account shall include the carrier's proportion of the costs incurred by others in maintaining joint tracks, yards, ter- minals, and other facilities. // the expense be for: FREIGHT SERVICE EXCLUSIVELY charge to Account No PASSENGER SERVICE EXCLUSIVELY charge to Account No BOTH FREIGHT AND PASSENGER SERVICE charge to Account No NOTE. The purpose of this account is to show the amounts accruing against the carrier for its proportion of the cost of maintaining tracks, yards, and other roadway and structure facilities maintained by others and in the joint use of which the carrier participates. (See special instructions, section 9 of this classification.) OTHER COMPANIES' PROPORTION OF MAINTAINING JOINT TRACKS, YARDS, AND OTHER FACILITIES BY THESE COMPANIES. This account shall include amounts chargeable to others as their proportions of the cost incurred by the carrier in main- taining joint tracks, yards, terminals, and other facilities. // the bills made against other lines for this service be for: FREIGHT SERVICE EXCLUSIVELY credit Account No PASSENGER SERVICE EXCLUSIVELY credit Account No BOTH FREIGHT AND PASSENGER SERVICE credit Account No NOTE. The purpose of this account is to show the amounts accruing in favor of the carrier and against others for their proportions of the cost of maintaining tracks, yards, and other roadway and structure facilities maintained by the carrier and in the joint use of which others participate. (See special instructions, section 9 of this classification.) Extracts from the Official Classification Pertaining to Maintenance of Equipment THE ACCOUNTS AND TEXTS HERE PRESENTED ARE FOR ILLUS- TRATIVE PURPOSES. You MUST REFER TO AND BE GUIDED BY THE OFFICIAL CLASSIFICATIONS. II. MAINTENANCE OF EQUIPMENT. SUPERINTENDENCE. This account shall include : PAY OF OFFICERS. The pay of officers directly in charge of or engaged in the maintenance of equipment. Expenses of this class must be charged to Account No. . . . 301a A PARTI AI, LIST OF OFFICERS. Vice president. Engineer of tests. Assistant vice president. Supervisor of car department. General superintendent of motive Electrical engineer. power. Assistant electrical engineer. Assistant general superintendent Chemist and assistant chemist. of motive power. Master car builder. Mechanical superintendent. Master mechanic. Superintendent of motive power. Shop superintendent. Assistant superintendent of motive General foreman. power. Chief car inspector. Mechanical engineer. Inspector of passenger-train Assistant mechanical engineer. cars. Chief chemist. General car inspector. ,. ' General equipment inspector. Traveling boiler inspector. PAY OF CLERICS AND ATTENDANTS. The pay of clerks and other employees in the offices and on business cars of officers whose pay is chargeable to this account. Expenses of this class must be charged to Account No. . . . 301b 63 MAINTENANCE AND CONSTRUCTION COSTS. A PARTIAL UST OF EMPLOYEES. Chief motive power clerks. Chief clerks. Draftsmen. Stenographers. Motive power clerks. Shop clerks. Messengers. Cooks. Porters. AND OTHER EXPENSES. Office expenses and other expenses of officers and employees whose pay is chargeable to this account, and amounts paid to detective agencies and others for investigations in connection with repairs of equipment. Expenses of this class must be charged to Account No. . . SOME ITEMS OF EXPENSE AND SUPPUES. Atlases and maps. Barometers. Books for office use. Business car service. Drafting instruments. Drafting supplies. Engineering supplies. Fees and dues in technical asso- ciations. Furniture repairs and renewals. Heating. Lighting. Official train service. Periodicals and newspapers. Power. Provisions for business cars. Rent of offices. Repair of rented offices. Telegraph service. Telephone service. Traveling expenses. Water and ice. NOTE A. When employees designated ahove are engaged on con- struction or other work not chargeable to Maintenance of Equipment, their pay and expenses while thus employed shall be charged to 'accounts covering 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 jurisdiction. NOTE C. The cost of stationery purchased for maintenance of equipment offices is chargeable to account No. 334, "Stationery and printing." NOTE D. The pay of general foremen in small shops, who exercise direct supervision over all departments, unassisted by departmental foremen, shall be apportioned through clearing account "Shop ex- penses." MAINTENANCE AND CONSTRUCTION COSTS. 65 SHOP MACHINERY. This account shall include the cost of repairing machinery and other apparatus, including special foundations, in shops and enginehouses. Expenses of this class must be charged to Account No. . . . 302 PARTIAL LIST OF SHOP MACHINERY. Air compressor. Anvils. Ash conveyors. Belting. Blowers. Boilers for furnishing power. Boring machines. Brass melting furnaces. Cars, small motor. Cars, push. Chain falls. Cranes and attach- ments. Cupolas. Cylinder boring bars. Dies for steam ham- mers and forging machines. Drill presses. Drilling machines. Drop tables. Emery wheel frames and pulleys. Forges. Flangers. Flue rattlers. Forging machines- Foundry ladles. Framing machines. Furnaces. Gauge testing machines. Grinding and polishing machines. Grindstone frames and pulleys. Hoists. Hydraulic presses. Hydraulic jacks. Lathes. Lifting magnets. Lve vats. Metal chimneys. Milling machines. Motors. Pipe cutting and threading machines. Planers. Pneumatic drills. Pneumatic hammers. Pneumatic presses. Power machinery, where no distinct power plant is pro- vided. Power hammers. Pulleys. Punches. Riveters. Rolls, betiding. Saws (power). Sewing machines. Scales, portable. Screw jacks. Shafting. Shapers. Slotters. Stationary engines. Steam hammers. Tire heaters. Trucks, wagon. Trucks, tire handling. Valve facing ma- chines. Vises. Welding machines. Woodworking ma- chines. Work benches. NOTE A. The cost of repairing power plant machinery for shop power when located in distinct buildings shall be included in account No. 304, "Power plant machinery." NOTE B. The cost of repairing boilers used exclusively for heating shall be included in the appropriate repair accounts for buildings. NOTE C. The cost of small tools which are soon worn out, when used by mechanics on miscellaneous work, shall be included in clearing account "Shop expenses," and when used on repairs of equipment shall be included in the appropriate accounts for repairs of equipment. 66 MAINTENANCE AND CONSTRUCTION COSTS. NOTE D. The cost of repairing machinery and tools in shops used exclusively for maintenance of way and structures shall be included in account No. 229, "Roadway buildings." . POWER PLANT MACHINERY. 1 This account shall include the cost of repairing machinery and other apparatus, including special foundations, for gen- erating power in power plants used for the operation of trains and cars and to furnish power, heat, and light for general pur- poses. It shall also include the cost of repairing machinery and other apparatus for transforming and storing power, when such apparatus is contained in a power plant. Expenses of this class must be charged to Account No. . . DETAILS Otf SOME POWER PI,ANT MACHINERY. Ammeters. Ash conveyors. Batteries. Belting. Boiler-room appliances and tools. Boilers and fittings. Boosters. Cables. Circuit breakers. Clutches. Conductors. Cranes. Draft machinery. Dynamos. Economizers. Electric-power distri- bution systems, inte- rior. Engine-room appliances and tools. Feed-water heaters. Furnaces. Generators. Globes. Hangers. Heating apparatus. Hoists. Insulators. Lamps. Lighting apparatus. Lubricating devices. Mechanical stokers. Piping. Poles. Pumps. Purifiers. Rheostats. Sewer connections. Shafting. Stationary engines. Steam distribution systems. Steam fittings. Switchboards. Tanks. Transformers. Turbines. Voltmeters. Water meters. Water wheels. Wires from genera- tors or transform- ers to switchboard. NOTE A. The cost of repairing power apparatus in shops where no distinct plant is provided shall be included in account No. 302, "Shop machinery." NOTE B. The cost of repairing power apparatus in stations and offices used solely for station and office purposes, where no distinct plant is provided, shall be included in account No. 227, "Station and office buildings." NOTE C. The cost of repairing power apparatus in plants used solely for operating signals and interlockers shall be included in account No. 249, "Signals and interlockers." MAINTENANCE AND CONSTRUCTION COSTS. 67 POWER SUBSTATION APPARATUS. This account shall include the cost of repairing machinery and other apparatus, including special foundations, for trans- forming or storing power in power substations used for the operation of trains and cars and for power, heat, and light for general purposes. Expenses of this class must be charged to Account No. . . . 306 DETAILS OF SOME OF THE POWER SUBSTATION APPARATUS. Rotary converters. Switchboards. Storage batteries. Transformers. NOTE. When machinery and other apparatus for transforming and storing power are located in a power plant the cost of repairs shall be included in account No. 304, "Power plant machinery." STEAM LOCOMOTIVES REPAIRS. This account shall include the cost of repairing transporta- tion service steam locomotives and tenders, including all appur- tenances, and the cost of small hand tools used in repair work. This account shall also include the cost of work-train service for the transportation of locomotives without steam to shops for repairs, including the pay and expenses of caretakers, and the pay and expenses of caretakers of locomotives without steam which are hauled in transportation service trains to shops for repairs ; also notarial fees in connection with reports on conditions of locomotives. // the expense be for: Locomotives assigned exclusively to FREIGHT-TRAIN SERVICE, or locomotives in freight-train service performing in- cidental passenger service charge to Account No 308a Locomotives assigned exclusively to PASSENGER-TRAIN SERVICE or locomotives in passenger-train service performing incidental freight service charge to Account No 308b Locomotives assigned exclusively to SWITCHING SERV- ICE or locomotives in switching service performing incidental freight or passenger service charge to Account No 308c 68 MAINTENANCE AND CONSTRUCTION COSTS. PARTIAL LIST OF APPURTENANCES TO LOCOMOTIVES. Air-brake equipment and hose. Head lamps. Arm rests. Packing (epccept for lubricating). Awnings. Pneumatic sanding equipment. Brake fixtures. Seat boxes. Cab cushions. Speed recorders. Cab lamps. Steam-gauge lamps. Clocks. Steam-heat equipment and hose. Coal boards. Storm doors. Fire extinguishing apparatus. Tool boxes. Gongs. Train-signal equipment and hose. NOTE A. The cost of inspecting smokestacks and ash pans of loco- motives in service shall be included in the appropriate enginehouse expense accounts. NOTE B. The cost of repairing steam locomotives and tenders of foreign lines, waybilled as freight, and damaged in transit shall be charged to account No. 418, "Loss and damage Freight" ; and the cost of repairing steam locomotives and tenders of foreign lines having trackage rights over the carrier's line, damaged by collision, wreck, or other cause, for which the carrier is liable, shall be charged to account No. 416, "Damage to property." NOTE C. The cost of running locomotives under steam to shops for repairs in connection with transportation service shall be included in the cost of the service in connection with which the movement occurs. NOTE D. The cost of repairing steam locomotives used solely in work service in connection with operations shall be included in account No. 326, "Work equipment Repairs." The cost of repairing locomo- tives on account of construction work shall be included in the cost of the work. (See general instructions for the classification of invest- ment in road and equipment, section 4c.) STEAM LOCOMOTIVES RETIREMENTS. This account shall include amounts necessary to adjust the difference between the ledger value (less salvage) of steam locomotives retired from service and the amount of accrued depreciation charged on account of such retired locomotives to the date of their retirement. (See road and equipment account II, Equipment, paragraphs 4 and 5.) The cost of demolishing steam locomotives, when at the expense of this Company, shall be charged to this account in the manner prescribed in the General Rules and Instructions MAINTENANCE AND CONSTRUCTION COSTS. 69 of this Company with respect to accounting for Material and Supplies. If the expense be for: Locomotives assigned exclusively to FREIGHT TRAIN SERVICE charge to Account No 310a Locomotives assigned exclusively to PASSENGER TRAIN SERVICE charge to Account No 310b Locomotives assigned exclusively to SWITCHING SERV- ICE charge to Account No 310c NOTE. Steam locomotives permanently retired from service, but held pending disposition, shall be written out of service and carried in an appropriate suspense account at an equitable valuation. OTHER LOCOMOTIVES REPAIRS. This account shall include the cost of repairs of transporta- tion service locomotives other than steam locomotives, analo- gous to those set forth for steam locomotives in account No. 308, "Steam locomotives Repairs." Expenses of this class must be charged to Account No 311 OTHER LOCOMOTIVES RETIREMENTS. This account shall include amounts necessary to adjust the difference between the ledger value (less salvage) of locomo- tives other than steam locomotives retired from service and the amount of accrued depreciation charged on account of such retired locomotives to the date of their retirement. (See road and equipment account II, Equipment, paragraphs 4 and 5.) The cost of demolishing other locomotives, when at the ex- pense of this Company, shall be charged to this account in the manner prescribed in the General Rules and Instructions of this Company with respect to accounting for Material and Supplies. Expenses of this class must be charged to Account No. . . . 313 NOTE. Locomotives permanently retired from service, but held pend- ing disposition, shall be written out of service and carried in an appro- priate suspense account at an equitable valuation. 7O MAINTENANCE AND CONSTRUCTION COSTS. FREIGHT-TRAIN CARS REPAIRS. This account shall include the cost of repairing freight-train cars and appurtenances, and cost of repairs of the freight-car feature of motor cars engaged in transportation service; also cost of small hand tools used in repairs. .This account shall also include the net loss sustained on account of the destruc- tion of foreign freight cars in the carrier's transportation service and amounts paid to others for repairs of freight cars for which the carrier is liable. // the expense be for: Home Cars repaired at Company Shops, charge to Account No. Home Cars repaired at Foreign Shops, charge to Account No. . Foreign Cars repaired at Company Shops, charge to Account No. Foreign Cars repaired at Foreign Shops, charge to Account No. PARTIAL, LIST OF FREIGHT-TRAIN CARS. Ballast (commercial). Gondola. Produce. Beer. Gondola (hopper). Rack. Box. Gondola (long). Refrigerator. Cabin. Gun truck. Stock. Caboose. Hay. Tank (in commercial Charcoal. Lime. service). Coal. Logging. Water (in commercial Coke. Oil tank. service). Dump (commercial). Ore. Work (in commercial Flat. Platform. service). Fruit Poling. Furniture. Poultry. PARTIAL LIST OF APPURTENANCES TO FREIGHT-TRAIN CARS. Air-brake equipment, Heating equipment. Train - signal equip- including hose. Iceboxes. ment, including Cooking equipment and Lamps and fixtures. hose, utensils. Seats. Water tanks. Cushions. Speed recorders. NOTE A. The cost of candles, wicks, lamp chimneys, globes, and shades for oil or other lamps in freight-train cars shall be charged to account No. 402, "Train supplies and expenses." NOTE B. The cost of repairing freight-train cars of foreign lines waybilled as freight and damaged in transit shall be charged to account No. 418, "Loss and damage Freight" ; and the cost of repairing freight-train cars of foreign lines having trackage rights over the car- MAINTENANCE AND CONSTRUCTION COSTS. 7! rier's line, when damaged by collision, wreck, or other cause, for which the carrier is liable, shall be charged to account No. 416, "Damage to property." .FREIGHT-TRAIN CARS RETIREMENTS. This account shall include amounts necessary to adjust the difference between the ledger value (less salvage) of freight- train cars retired from service and the amount of accrued depreciation charged on account of such retired cars, to the date of their retirement. (See road and equipment account II, Equipment, paragraphs 4 and 5.) The cost of demolishing freight-train cars, when at the ex- pense of this Company, shall be charged to this account in the manner prescribed in the General Rules and Instructions of this Company with respect to accounting for Material and Supplies. Expenses of this class must be charged to Account No 316 NOTE. Freight-train cars permanently retired from service, but held pending disposition, shall be written out of service, and carried in an appropriate suspense account at an equitable valuation. PASSENGER-TRAIN CARS REPAIRS. This account shall include the cost of repairing passenger- train cars and appurtenances and passenger-car features of motor cars used in transportation service; small hand tools used in repairs ; the net loss sustained on account of the destruc- tion of foreign passenger-train cars in the carrier's transporta- tion service, and amounts paid others for repairs of passenger- train cars for which the carrier is liable. Expenses of this class must be charged to Account No. . . . 317 PARTIAL LIST OP PASSENGER-TRAIN CARS. Baggage. Combination passenger Parlor-baggage. Baggage-express. and baggage. Passenger. Baggage-mail. Dining. Passenger-baggage. Baggage-mail-express. Express. Passenger - baggage - Buffet Immigrant. mail. Cafe. Library. Postal. Chair. Mail. Refrigerator-express. Club. Milk. Sleeping. Colonist. Observation. Smoking. Parlor. Tourist. MAINTENANCE AND CONSTRUCTION COSTS. PARTIAL UST OF APPURTENANCES TO PASSENGER-TRAIN CARS. Air - brake equipment, including hose. Bedding. Chairs. Goat hooks. Curtains and fixtures. Cushions. Electric bells. Floor coverings. Heating equipment and steam heat hose. Ice boxes. Ice tanks. Kitchen equipment and utensils. Lighting equipment. Mail catchers. Parcel racks. Ranges and boilers. Seats. Speed recorders. Steam heat hose. Table china. Table glassware. Table linen. Table silver. toilet equipment. Train - signal equip- ment, including hose. Water tanks. NOTE A. The cost of candles, wicks, and lamp chimneys, and of globes and shades for electric and other lights in passenger-train cars shall be charged to account No. 402, "Train supplies and expenses." NOTE B. The cost of repairing passenger-train cars of foreign lines, which are waybilled as freight and have been damaged in transit, shall be charged to account No. 418, "Loss and damage Freight," and the cost of repairing passenger-train cars of foreign lines having trackage rights over the carrier's line, when damaged by collision, wreck or otherwise, for which the carrier is liable, shall be charged to account No. 416, "Damage to property." PASSENGER-TRAIN CARS RETIREMENTS. This account shall include amounts necessary to adjust the difference between the ledger value (less salvage) of passenger- train cars retired from service and the amount of accrued depreciation charged on account of such retired cars to the date of their retirement. (See road and equipment account II, Equipment, paragraphs 4 and 5.) The cost of demolishing passenger-train cars, when at the, expense of this Company, shall be charged to this account in the manner prescribed in the General Rules and Instructions of this Company with respect to accounting for Material and Supplies. Expenses of this class must be charged to Account No. . . NOTE. Passenger-train cars permanently retired from service, but held pending disposition, shall be written out of service and carried in an appropriate suspense account at an equitable valuation. MAINTENANCE AND CONSTRUCTION COSTS. 73 MOTOR EQUIPMENT OF CARS REPAIRS. This account shall include the cost of repairing motor equip- ment affixed to cars; also cost of small hand tools used in re- pairs. The cars to which this account has reference are distinct from independent locomotives used for the propulsion of trains. Expenses of this class must be charged to Account No. . . . 320 SOME ITEMS OP MOTOR EQUIPMENT. Batteries, storage. Generators. Switches. Circuit breakers. Lightning arresters. Third-rail contact. Controllers. Motors. Trolley poles. Engines, internal-corn- Overload switches. Trolleys, bustion. Rheostats. MOTOR EQUIPMENT OF CARS RETIREMENTS. This account shall include amounts necessary to adjust the difference between the ledger value (less salvage) of motor equipment of cars retired from service, and the amount of accrued depreciation charged on such retired equipment to the date of its retirement. (See road and equipment account II, Equipment, paragraphs 4 and 5.) The cost of demolishing the motor equipment of cars, when at the expense of this Company } shall be charged to this account in the manner prescribed in the General Rules and Instructions of this Company with respect to accounting for Material and Supplies. Expenses of this class must be charged to Account No. . . . 322 NOTE. The motor equipment of cars permanently retired from service, but held pending disposition, shall be written out of service and carried in an appropriate suspense account at an equitable valuation. FLOATING EQUIPMENT REPAIRS. This account shall include the cost of repairing floating equipment (other than work equipment), including appurte- nances, and cost of small hand tools used in repairs. The pay and expenses of captains and engineers and of boat employees, while engaged on maintenance of floating equip- ment, shall be included in this account. Expenses of this class must be charged to Account No 323 74 MAINTENANCE AND CONSTRUCTION COSTS. PARTIAL LIST OF FLOATING EQUIPMENT. Barges. Canal boats. Car and other floats. Ferryboats. Lighters. Power launches. Power lighters. Scows. Steamboats. Steamships. Transfer boats. Tugboats. 1 PARTIAL LIST OF APPURTENANCES, TOOL EQUIPMENT, AND , FURNITURE. Anchors. Axes. Barometers. Beds and bedding. Binnacle lamps. Blocks and tackle. Boilers and founda- tions. Cables. Capstan bars. Carpets. Charts. China, crockery, and glassware. Chronometers. Clocks. Compasses. Counters. Desks. Engines and founda- tions. Fire buckets. Fire extinguishers. Floor coverings. Flue cleaners. Furniture. Gangplanks. Hatchets. Heating equipment. Hoisting equipment. Hooks. Keys. Kitchen equipment. Life preservers. Lighting equipment. Linen. Lines. Logs. Machinery and foun- dations. Masts. Office furniture. Oil cans. Pianos and other musi- cal instruments. Pumps. Racks. Railings. Rakes. Rigging. Safes. Sails. Scales. Seats, chairs, and cushions. Shovels. Slice bars and pokers. Spyglasses. Steam distribution systems. Steering equipment. Telescopes. Ticket cases. Tool boxes. Tools, miscellaneous. Tracks on car floats. Ventilating equipment. Wrenches. NOTE A. When the compensation for the use of floating equipment includes rent, maintenance, and operation, the portion covering rent shall be included in income account No. 539, "Rent for floating equip- ment," the portion covering repairs shall be included in this account, the portion covering depreciation shall be included in account No. 324, "Floating equipment Depreciation," and the portion covering operation shall be included in account No. 408, "Operating floating equipment," or in the primary accounts in general account V, Trans- portation Water Line, as may be appropriate. NOTE B. The cost of repairs resulting from casualties shall be charged to the casualty accounts when covered by insurance and to insurance reserves to the extent of the accruals therein when such reserves have been provided for the damage to property. Any part of such cost not recoverable from underwriters or chargeable to insurance reserves shall be charged to the repair account. MAINTENANCE AND CONSTRUCTION COSTS. 75 FLOATING EQUIPMENT RETIREMENTS. This account shall include amounts necessary to adjust the difference between the ledger value (less salvage) of floating equipment, other than work equipment, retired from service and the amount of accrued depreciation charged on account of such retired equipment to the date of its retirement. (See road and equipment account II, Equipment, paragraphs 4 and 5.) The cost of demolishing floating equipment, when at the expense of this Company, shall be charged to this account in the manner prescribed in the General Rules and Instructions of this Company with respect to accounting for Material and Supplies. Expenses of this class must be charged to Account No. . . . NOTE. When floating equipment is permanently retired from service, but held pending disposition, it shall be written out of service and carried in an appropriate suspense account at an equitable valuation. WORK EQUIPMENT REPAIRS. This account shall include the cost of repairing rail and floating work equipment, including appurtenances, and cost of small hand tools used in repairs. The cost of fitting up commercial cars for work service in connection with maintenance and operation; the cost of refit- ting them for commercial service; the cost of repairs to loco- motives while in service for repairs of road and equipment; and the cost of repairs to foreign cars damaged while in such service shall be included in this account; also amounts paid in settlement for such cars destroyed in such service. Expenses of this class must be charged to Account No. . . . PARTIAL LIST OP WORK EQUIPMENT RAIL. Air-brake instruction Concrete mixers Grading cars. cars. (mounted). Gravel cars. Ballast cars. Derrick cars. Indicator cars. Ballast unloader cars. Dirt spreaders Locomotive, tanks used Boarding cars. (mounted). as water cars. Bridge cars. Ditching cars. Locomotives. Business cars. Dump cars. Officers' cars. Camp cars. Dynamometer cars. Outfit cars. Cinder cars. Gas-tank cars. Painters' cars. 7 6 MAINTENANCE; AND CONSTRUCTION COSTS. Pay cars. Pile drivers (mount- ed). Rail saws (mounted). Salt cars. Sanding cars. Scale test cars. Scraper cars. Snow dozers. Snow drags. Snow plows (not at- tached to but moved by locomotives). Sprinkling cars. Steam shovels. v x . Steam wrecking der- Wrecking . cars, ricks. Supply cars. Sweeper cars. Tool and block cars. Tool cars. Water cars. Weed burners (mounted). SOME APPURTENANCES TO WORK EQUIPMENT RAIL. Air-brake equipment. Engines on cars. Rakes. Bars. Flue cleaners. Ranges. Beds and bedding. Hatchets. Rope. Blocking. Heating equipment. Shovels. Blocks and tackle. Hooks. Slice bars and pokers. Boilers on cars. Jacks. Tarpaulins. Bunks, seats, and Kitchen utensils. Tool boxes. chairs. Lighting equipment. Tools, miscellaneous. Cable. Linen. Train - signal equip- Car replacers. Lines. ment. Chains. Levers. Wrecking trucks. China, crockery, and Machinery on cars. Wrenches. glassware. Mauls. Cushions. Oil cans. Derricks. LIST OF SOME.WORK EQUIPMENT FIXATING. Dredges. Pile drivers. SOME APPURTENANCES TO WORK EQUIPMENTFLOATING. Anchors. Axes. Barometers. Beds and bedding. Blocks and tackle. Boilers and founda- tions. Cables. China, crockery, and glassware. Compasses. Cushions. Desks. Engines and founda- tions. Fire extinguishers. Fire buckets. Floor coverings. Flue cleaners. Gangplanks. Hatchets. Heating equipment. Hoisting equipment. Hooks. Keys. Life preservers. Lighting equipment. Linen. Lines. Machinery and foun- dations. Masts. Oil cans. Pumps. Rakes. Rigging. Sails. Seats and chairs. Shovels. Slice bars and pokers. Steam distribution systems. Steering equipment. Tool boxes. Tools, miscellaneous. Wrenches. MAINTENANCE AND CONSTRUCTION COSTS. Jf NOTE. The cost of repairs to work equipment on account of con- struction work shall be included in the cost of the construction work on which it is used. (See general instructions for the classification of investment in road and equipment, section 4^.) WORK EQUIPMENT RETIREMENTS. This account shall include amounts necessary to adjust tht difference between the ledger value (less salvage) of work equipment retired from service and the amount of accrued depreciation charged on account of such retired equipment to the date of its retirement. (See road and equipment account II, Equipment, paragraphs 4 and 5.) The cost of demolishing work equipment, when at the ex- pense of this Company, shall be charged to this account in the manner prescribed in the General Rules and Instructions of this Company with respect to accounting for Material and Supplies. Expenses of this class must be charged to Account No. . . . 328 NOTE. When work equipment is permanently retired from service, but held pending disposition, it shall be written out of service and carried in an appropriate suspense account at an equitable valuation. MISCELLANEOUS EQUIPMENT REPAIRS. This account shall include the cost of repairing miscellaneous equipment, such as wagons, automobiles, and other highway vehicles, and harness. Expenses of this class must be charged to Account No. . . . 329 MISCELLANEOUS EQUIPMENT RETIREMENTS. This account shall include amounts necessary to adjust the difference between the ledger Value (less salvage) of miscella- neous equipment, including horses, retired from service and the amount of accrued depreciation charged on account of such retired equipment to the date of its retirement. (See road and equipment account II, Equipment, paragraphs 4 and 5.) The cost of demolishing miscellaneous equipment, when at the expense of this Company, shall be charged to this account in the manner prescribed in the General Rules and Instructions of this Company with respect to accounting for Material and Supplies. Expenses of this class must be charged to Account No 331 78 MAINTENANCE AND CONSTRUCTION COSTS. NOTE. Miscellaneous equipment permanently retired from service, but held pending disposition, shall be written out of service and carried in an appropriate suspense account at an equitable valuation. INJURIES TO PERSONS. This account shall include expenses on account of injuries to persons which occur directly in connection with repairs of equipment. Services of employees and others called in consultation in relation to claim adjustments, pay and expenses of employees while engaged as witnesses at inquests and lawsuits, and a suitable proportion of donations made to hospitals shall be included in this account. Expenses of this class must be charged to Account No. . . , SOME ITEMS 01? EXPENSE. Artificial limbs. Hospital attendance. Carriage fees. Medical and surgical services. Claim adjusters' and clerks' serv- Medical and surgical supplies. ices. Notarial fees. Claim adjusters' office expenses. Nursing. Compensation for injuries or Railway transportation. death. Undertakers' services. Final judgments, including plain- Undertakers' supplies. tiffs' court costs. Witnesses' fees and expenses at Funeral expenses. inquests and law suits. NOTE A. Expenses incident to personal injury suits, not otherwise provided for, shall be included in account No. 454, "Law expenses." NOTE B Amounts donated by a carrier to hospitals shall be dis- tributed, 25 per cent to account No. 274, "Injuries to persons"; 25 per cent to account No. 332, "Injuries to persons"; and 50 per cent to account No. 420, "Injuries to persons." NOTE C. The pay, office rent, an'd office and other expenses of claim adjusters, claim clerks, and others in charge of or engaged in connec- tion with claim cases when not assignable to a distinct class of claims, shall be apportioned equally among the several classes of claims over which they have jurisdiction or in connection with which they are engaged. INSURANCE. This account shall include premiums, except reinsurance premiums, for insuring the carrier against loss, through injuries MAINTENANCE AND CONSTRUCTION COSTS. 79 to persons or damage to or destruction or loss of property, whether caused by fire, accident, or other cause, when such loss to the carrier would be chargeable to Maintenance of Equipment; also premiums on fidelity bonds of employees whose pay is chargeable to Maintenance of Equipment. Expenses of this class must be charged to Account No. . . . NOTE. The premiums paid by the carrier to its insurance fund shall be credited to an insurance reserve account, to which account shall be charged the amount of all claims for injuries to persons and damages to the property covered by its insurance. To such account shall also be charged all reinsurance premiums paid to insurance companies, and to it shall be credited all amounts recovered from insurance companies for damage to the property reinsured by them. STATIONERY AND PRINTING. This account shall include the cost of stationery and print- ing used in connection with Maintenance of Equipment. Expenses of this class must be charged to Account No. . . . SOME STATIONERY AND PRINTING ITEMS. Adding machines. Addressographs and supplies. Arm rests. Binders. Blank books. Blotters. Blotting paper. Bristol board. Calculating machines. Calendars. Carbon paper. Cardboard. Cards, blank and print- ed. Circulars. Computing tables. Copy ( impression) books. Copying brushes. Copying presses. Crayons. Cyclostyles. Dating stamps and rib- Letter paper. bons. Manifold paper. Dictaphones. Manifold pens. Dictographs. Mimeographs. Drawing paper. Mucilage. Duplicators. Mucilage brushes. Electric pens. Neostyles. Envelopes. Note paper. Erasers, rubber and Notices. steel. Numbering stamps. Eyelet punches. Oil paper. Eyelets. Paper. File boxes, paper. Paper baskets. Forms, blank and print- Paper clips. ed. Paper cutters. Glass pens. Paper fasteners. Hectographs. Paper files. Indexes. Paper weights. Ink for writing and Papyrographs. drawing. Parchment paper. Inkstands. Pencil sharpeners. Invoice books. Pencils for writing and Legal cap paper. drawing. 334 8o MAINTENANCE AND CONSTRUCTION COSTS. Penholders. Penracks. Pens for writing and drawing. Phonographs and rec- ords. Pins. Postage. Punches (not con- ductors' or baggage- men's). Rubber bands. Rubber stamps. Rulers. Ruling pens. Scrapbooks. Sealing wax. Seals. Shears. Shipping tags. Shorthand notebooks. Sponge cups. Sponges. Stamps, impression. Stylographs. Tablets, blank and printed. Tape. Telegraph blanks. Tissue (impression) paper. Tracing cloth. Tracing paper. Twine. Typewriters and rib- bons. Wage tables. Wastebaskets. Water colors. Water holders. Wrapping paper. Wringers for copying presses. NOTE. The cost of dictionaries, periodicals, technical books, etc., shall be included in the appropriate superintendence accounts. OTHER EXPENSES. This account shall include expenses in connection with the maintenance of equipment not properly chargeable to other accounts for maintneance of equipment or to clearing accounts such as "Material store expenses" and "Shop expenses." Expenses of this class must be charged to Account No. . . , SOME ITEMS OF EXPENSE. Pay and expenses of mechanical department employees attending con- ferences with officers in connection with mechanical department wage disputes. Fees paid arbitrators in connection with mechanical department wage disputes. Payments to mechanical department employees for time absent on account of sickness when not compensation for personal injuries. MAINTAINING JOINT EQUIPMENT AT TERMINALS DR. This account shall include the carrier's proportion of ex- penses incurred by others in maintaining equipment used for the operation of joint terminals, including the carrier's pro- portion of expenses of repairing equipment made necessary by accidents in terminals, when such expenses are participated in by more than one party using the joint terminals, MAINTENANCE AND, qotfstRucpo^ -cp^s.; ; Si If the expense be for: FREIGHT SERVICE EXCLUSIVELY charge to Account No ............................................. 336a PASSENGER SERVICE EXCLUSIVELY charge to Account No ....................... . ..................... 336b BOTH FREIGHT AND PASSENGER SERVICE charge to Account No .................................... 336c . The purpose of this account is to show the amount accruing against the carrier for its proportion of the expense of maintaining equipment at terminals which is maintained by others and in the joint use of which the carrier participates. MAINTAINING JOINT EQUIPMENT AT TERMINALS CR. This account shall include amounts chargeable to others as their proportions of expenses incurred by the carrier in main- taining equipment used for the operation of joint terminals, and for expenses of repairing equipment made necessary by accidents in terminals, when such expenses are participated in by more than one party using the joint terminals. // the bills made against other lines for this service, be for: FREIGHT SERVICE EXCLUSIVELY credit Account No .................................................... 337a PASSENGER SERVICE EXCLUSIVELY credit Ac- count No ............................................... 337b BOTH FREIGHT AND PASSENGER SERVICE credit Account No ........................................... . . 337c NOTE. The purpose of this account is to show the amounts accru- ing in favor of the carrier and against others for their proportions of the expense of maintaining equipment at terminals which is maintained by the carrier and in the joint use of which others participate, YB 65942 UNIVERSITY OF CALIFORNIA LIBRARY v