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CIRCULAR No. 32A 
 
 
 Public Service Commission 
 
 OF MARYLAND 
 
 Regulations Prescribing a Uniform System 
 of Accounts for Gas Corporations 
 
 ISSUED BY ORDER OF THE COMMISSION 
 
 June 12, 191 
 
 BALTIMORE 
 1911 
 
CIRCULAR No. 32A 
 
 Public Service Commission 
 
 OF MARYLAND 
 
 Regulations Prescribing a Uniform System 
 of Accounts for Gas Corporations 
 
 ISSUED BY ORDER OF THE COMMISSION 
 
 June 12, 1911 
 
 BALTIMORE 
 1911 
 

 of 
 
INDEX 
 
 LIST OF ACCOUNTS. 
 
 SCHEDULE A: BALANCE SHEET OR INDICANT ACCOUNTS. 
 
 FIXED CAPITAL. 
 
 Page. 
 
 1 Fixed Capital, June 30, 1911 M 
 
 11 Organization 1° 
 
 12 Royalties, Franchises and Licenses H 
 
 13 Manufacturing Plant H 
 
 131 Land ] 1 
 
 132 Buildings and Structures 12 
 
 133 Holders 12 
 
 134 Furnaces, Boilers and Accessories 12 
 
 135 Steam Engines 13 
 
 136 Gas Engines I 3 
 
 137 Miscellaneous Power Plant Equipment 13 
 
 138 Benches and Retorts I 4 
 
 139 Water Gas Sets and Accessories 14 
 
 140 Purification Apparatus I 4 
 
 141 Accessory Equipment at Works • I 4 
 
 15 Transmission and Distribution I 4 
 
 151 Land 14 
 
 1 52 Trunk Lines and Mains 15 
 
 153 Street Mains, Extension and Improvements 15 
 
 154 Gas Services 1 R 
 
 155 Gas Meters 1 fi 
 
 1 56 Gas Meter Installation 16 
 
 1 6 Municipal Street Lighting Fixtures 17 
 
 17 Gas Engines and Appliances 17 
 
 18 General Office and Branches 1* 
 
 181 Land 1* 
 
 1 82 Buildings and Structures 18 
 
 183 Furniture and Fixtures IS 
 
 19 Other Equipment T9 
 
 191 Land 19 
 
 192 Buildings and Structures 19 
 
 193 Gas Tools and Implements 20 
 
 194 Laboratory Equipment 20 
 
 195 Storeroom Equipment 20 
 
 196 Stable Equipment 20 
 
 20 Miscellaneous Expenditures during Construction 21 
 
 201 Engineering and Superintendence 21 
 
 202 Law Expenditures 21 
 
 203 Taxes 21 
 
 204 Interest 22 
 
 205 Injuries 22 
 
 206 General Construction Expenses 22 
 
 21 Other Tangible Gas Capital 22 
 
 22 Other Intangible Gas Capital 23 
 
 23 Tangible Capital in other Departments 23 
 
 FLOATING CAPITAL. 
 
 251 Cash 23 
 
 252 Bills Receivable 24 
 
 253 Accounts Receivable ttWAH'A'Zy 24 
 
Index 
 
 254 Other Current Assets 24 
 
 255 Materials and Supplies 24 
 
 256 Investments 25 
 
 257 Sinking Funds, Invested 25 
 
 258 Sinking Funds, Uninvested 25 
 
 259 Special Deposits 2(5 
 
 260 Prepayments 26 
 
 261 Unextinguished Discount on Securities 26 
 
 262 Suspense 27 
 
 263 Re-acquired Securities 27 
 
 DEBT. 
 
 271 Funded Debt 28 
 
 Unfunded Debt 29 
 
 272 Taxes Accrued 29 
 
 273 Interest Accrued on Funded Debt 30 
 
 274 Interest Accrued on Unfunded Debt 30 
 
 275 Judgments, Unpaid 30 
 
 276 Receiver's Certificates 31 
 
 277 BMls Payable 31 
 
 278 Consumer's Deposits, Gas 31 
 
 279 Accounts Payable 31 
 
 280 Dividends Payable 32 
 
 281 Other Unfunded Debt 32 
 
 RESERVES. 
 
 282 Sinking Fund Reserves 32 
 
 283 Reserve for Accrued Depreciation 32 
 
 284 Optional Reserves 33 
 
 285 Premiums on Capital Stock 34 
 
 CAPITAL STOCK. 
 
 286 Common Stocks 34 
 
 286A Preferred Stocks 34 
 
 SCHEDULE B: INCOME ACCOUNT. 
 
 Operating Revenues. 
 
 301 Municipal Street Lighting 38 
 
 302 Municipal Mixed Lighting and Power 38 
 
 303 Municipal Power 38 
 
 304 Commercial Lighting 38 
 
 305 Commercial Power 38 
 
 306 Miscellaneous Sales of Gas 39 
 
 307 Sales of Residuals and Byproducts 39 
 
 308 Miscellaneous Gas Revenue 39 
 
 Non-operating Revenues. 
 
 321 Rent from Lease of Gas Plant 40 
 
 322 Rent from Lease of Real Estate or Buildings 40 
 
 323 Interest Revenues 40 
 
 324 Dividends Declared 40 
 
 325 Miscellaneous Non-operating Revenue 40 
 
OPERATING EXPENSES. 
 I. Production Expenses. 
 
 Page. 
 
 401 Superintendence and Labor 41 
 
 (a) Works, Superintendence 41 
 
 (b) Boiler House Labor 41 
 
 ( c ) Retort House Labor 42 
 
 (d) Generator House Labor 42 
 
 (e) Miscellaneous Labor at Works 42 
 
 402 Boiler Fuel 42 
 
 403 Fuel under Retorts 42 
 
 404 Coal Carbonized 43 
 
 405 Generator Fuel 43 
 
 406 Coal Gas Enricber 43 
 
 407 Oil (Water Gas) 43 
 
 408 Water 44 
 
 409 Purification Labor 44 
 
 410 Purification Supplies 44 
 
 411 Miscellaneous Works Expense 44 
 
 412 Repairs of Works and Stations 44 
 
 413 Repairs of Power Plant 45 
 
 (a) Furnaces, Boilers and Accessories 45 
 
 (b) Steam Engines ; 46 
 
 (c) Gas Engines 46 
 
 (d) Miscellaneous Power Plant : 46 
 
 414 Repairs of Gas Apparatus 46 
 
 (a) Benches and Retorts 47 
 
 (b) Water Gas Sets and Accessories 47 
 
 (c) Purification Apparatus 47 
 
 (d) Holders 47 
 
 (e) Miscellaneous Equipment 47 
 
 415 Repairs of Works Tools 48 
 
 416 Gas Storage 48 
 
 417 Purchased Gas 48 
 
 418 Residual Expenses 48 
 
 II. Transmission and Distribution Expenses. 
 
 421 Transmission Pumping 49 
 
 422 Distribution Superintendence 49 
 
 423 Distribution Supplies and Expenses 49 
 
 424 Gas Meter and Installation Work 49 
 
 425 Gratuitous Work 50 
 
 426 Repairs of Gas Mains 50 
 
 427 Repairs of Gas Services 51 
 
 428 Repairs of Gas Meters 51 
 
 429 Repairs of Distribution Tools 51 
 
 430 Repairs of Gas Appliances 51 
 
 III. Municipal Street Lighting Expenses. 
 441 Street Lamp Operating 52 
 
IV. Commercial Expenses. 
 
 Page. 
 
 442 Commercial Expense 52 
 
 (a) Collection Expense 52 
 
 (b) Office Expense 555 
 
 (c) Office Salaries 52 
 
 443 New Business 52 
 
 ( a ) Advertising 53 
 
 (b) Appliance Demonstrations 53 
 
 (c) Soliciting 53 
 
 ( d ) Gas Appliances 53 
 
 (e) Gas Engine Expense 53 
 
 (f ) House Fitting 53 
 
 V. General and Miscellaneous Expenses. 
 
 451 Salaries — General 53 
 
 452 Expense — General Office 54 
 
 453 Insurance 54 
 
 454 Accidents and Damages 54 
 
 455 Relief Department and Pensions 55 
 
 456 General Law Expenses 55 
 
 457 Stable Expenses 55 
 
 458 Storeroom Expenses 55 
 
 DEDUCTIONS FROM INCOME. 
 
 459 Taxes 56 
 
 460 Uncollectible Bills 56 
 
 461 Interest on Funded Debt 56 
 
 462 Interest on Unfunded Debt 56 
 
 463 Inventory Adjustments 56 
 
 464 Miscellaneous Non-operating Expense 57 
 
 APPROPRIATIONS. 
 
 501 Extinguishment of Discount on Securities 57 
 
 502 Depreciation of Plant 58 
 
 503 Sinking Funds 59 
 
 504 Optional Reserves 59 
 
 505 Dividends Declared 59 
 
 506 Miscellaneous 60 
 
 Bad debts collected or written off. ... , 
 
 Expenses elsewhere Unprovided for 
 
 Additions to Surplus 
 
 Deductions from Surplus 
 
REGULATIONS ISSUED BY THE PUBLIC SERVICE 
 COMMISSION OF MARYLAND PRESCRIBING A 
 UNIFORM SYSTEM OF ACCOUNTS FOR GAS COR- 
 PORATIONS. 
 
 Issued under order of the Commission of June 12th, 191 1. 
 
 1. On and after July 1, 1911, every gas corporation engaged 
 in the manufacture, sale and distribution of gas, and every 
 gas- corporation not engaged in operation, shall keep upon 
 ils hooks the accounts prescribed or defined in "Schedule A" 
 so far as the said accounts are pertinent to the facts and cir- 
 cumstances of the said corporation. The term gas corporation 
 is used herein in the sense defined in the Public Service Com- 
 mission Law. 
 
 2. < )n and after the date of service of this order on any such 
 gas corporation, such corporation shall not charge to any 
 account representing cost of property any discount or com- 
 mission on securities issued by the said corporation, but shall 
 charge all such discounts, commissions, and other expense con- 
 nected with the issue of securities subsequent to the said date 
 of service in accordance with the directions contained in the 
 definitions of the account named "Organization," and the ac- 
 count named "Unextinguished Discount on Securities," in the 
 said "Schedule A." 
 
 :>. On and after July 1, 1911, every such gas corporation 
 shall keep upon its books the accounts prescribed or defined 
 in the schedule marked "Schedule B," so far as the same are 
 pertinent to the facts and circumstances of the said corpo- 
 ration. 
 
 4. On and after July 1, 1911, any such gas corporation may 
 keep upon its books the accounts prescribed or defined in the 
 uniform system of accounts for gas companies adopted by the 
 American Gas Light Association on October 15, 1902, so far 
 as the same are pertinent to the facts and circumstances of 
 said corporation, in lieu of the accounts prescribed or defined 
 in the schedules marked "A" and "B"; provided, however, that 
 there be tiled with the Public Service Commission a statement 
 containing a list of said accounts and the definitions thereof; 
 provided further, that nothing herein shall contravene the pro- 
 visions of paragraph 2 with reference to the account named 
 
"Organization" and tlie account named "Unextinguished Dis- 
 count on Securities" set forth in the said -Schedule 'A.' " nor 
 with the account named "Depreciation of Plant" as specified 
 in the said "Schedule 'B;'" and provided further, that every 
 such gas corporation may also keep upon its hooks any other 
 or additional accounts prescribed or denned in the said 
 "Schedule ' A' " or "Schedule 'B;'" hut no change shall he 
 made in the primary accounts prescribed in either of said 
 schedules. 
 
 5. For the purpose of improving the efficiency of administra- 
 tion and operation, any corporation may unless or until other- 
 wise ordered keep upon its books any temporary or experi- 
 mental accounts and any accounts covering particular divisions 
 of its operations, hut no change shall be made in the primary 
 accounts prescrihed in either "Schedule 'A' " or "Schedule 'B' " 
 or in the accounts prescribed in the uniform system of accounts 
 for gas companies adopted by the American Gas Light Associa- 
 tion on October 1."), 1902, without the assent of the Public 
 Service Commission being first obtained. 
 
 6. All notices herein required to be filed covering accounts 
 shall be upon sheets Sy 2 inches by 11 inches in size, and shall 
 be entitled in the name of the corporation tiling said notices, 
 followed by a brief statement of the character of the accounts 
 covered by the notice. 
 
 SCHEDULE A. 
 
 BALANCE SHEET OK INDICANT ACCOUNTS. 
 
 1 
 GAS CORPORATIONS AND GAS OPERATIONS 
 DEFINED. 
 
 Section 1 of the Public Service Commission Law defines a 
 Gas Corporation as follows: 
 
 The term "Gas Corporation" when used in I his Act, includes 
 every corporation, company, association, joint stock company, 
 partnership and person, their lessees, trustees of receivers 
 appointed by any Court whatsoever, owning, operating, man- 
 aging or controlling any plant or property for manufacturing 
 and distributing and selling for distribution or selling or dis- 
 
tributing illuminating gas (natural or artificial or manu- 
 factured, and wheresoever and howsoever derived or obtained) 
 for light, heat, fuel or power, or for any public use whatever. 
 
 Gas Operations, 
 
 As the term is hereinafter used, include all acts and trans- 
 actions directly connected with the operation of a plant for 
 the production of gas (whether natural or manufactured), the 
 transmission thereof and the supply thereof to consumers for 
 light, heat or power, and all operations incident thereto, in- 
 cluding the collection of revenues therefor and the disposition 
 of byproducts produced in connection therewith. 
 
 ACCOUNTS TO 1510 KEPT BY DOUBLE-ENTBY METHOD. 
 
 All accounts kept by any corporation or person within the 
 scope of the present order shall on and after June 30, 11)11, be 
 kept by the double-entry method. 
 
 NOTE. — This requirement is not intended to apply to purely statis- 
 tical accounts. 
 
 CAPITAL ACCOUNTS. 
 
 By Capital as herein used, is meant all property of a corpo- 
 ration devoted to the rendering of the services or the produc- 
 tion of the commodities which are within the purposes of the 
 corporation. 
 
 FIXED CAPITAL. 
 
 Fixed Capital is capital which has an expectation of life in 
 service of more than one year (exception being made of hand 
 and other small portable tools liable to be lost or stolen). 
 
 Fixed Capital is divisible into: 
 
 (a) Original Capital. 
 That put into service at the outset of an enterprise. 
 
(b) Additions. 
 
 Such additional .structures, facilities or equipment as do 
 not take the place of anything previously existing. 
 
 (c) Betterments. 
 
 The enlargement or improvement of existing structures, 
 facilities and equipment. 
 
 (d) Fate teals. 
 
 All extensions of terms of years in land and tangible fixed 
 capital and all extensions of the life period of franchises and 
 other intangible fixed capital. 
 
 (e) Replacements. 
 
 All substitutions for capital exhausted or become inadequate 
 in service, the substitutes having practically no greater capac- 
 ity than the things for which they were substituted. 
 
 When through wear and tear or through casualty it be- 
 comes necessary to replace some part of any structure, facil- 
 ity or unit of equipment and the extent of such replacement 
 docs not amount to a substantial change of identity in such 
 structure, facility or unit of equipment, the replacement is to 
 be considered a repair, and the cost of such repair is to be 
 treated as an operating expense and must not be charged as 
 a replacement in any capital account. 
 
 Fixed Capital is also divided into landed capital and non- 
 landed capital. Landed Capital includes all interests in land 
 (exclusive of improvements thereon) the term of which is more 
 than one year. All other fixed capital is herein called Non- 
 Landed Capital. 
 
 Intangible and Tangible Capital Defined. 
 
 Non-landed capital is divisible into intangible ami tangible. 
 Intangible capital comprises organization, franchises, patenl 
 rights, and all other intangible property within the definition 
 
of fixed non-landed capital as above stated. Tangible Capital 
 comprises structures and equipment having- an expectation of 
 life in service of more than one year. Because of their liability 
 to loss or theft, hand and other small portable tools are ex- 
 cepted from tangible capital, and the cost of such tools is re- 
 quired to be treated as a part of the expenses. Hand and 
 other small portable tools when first acquired and before 
 issued for use may be charged to the "Materials and Supplies" 
 account, and when issued charged to the appropriate expense 
 account and the account "Materials and Supplies" credited 
 with same. 
 
 FLOATING CAPITAL. 
 Capital other than fixed capital is called floating capital. 
 
 PLANT, EQUIPMENT AND OTHER CAPITAL 
 PURCHASED. 
 
 When any fixed capital in the form of a going or completed 
 plant is purchased, an appraisal of such capital so acquired 
 shall be made, and the different constituent elements of the 
 plant, equipment or other capital acquired shall be appraised 
 at their then structural value; that is to say, at the estimated 
 cost of replacement or reproduction less a proper allowance 
 for depreciation based upon the length of time the plant has 
 been in service and for such part of the plant as may be ob- 
 solete or inadequate for economical use. 
 
 If the actual money value of the consideration given for 
 the. plant or other capital was, at the time of acquisition, in 
 excess of such appraised value, the excess shall be charged to 
 the account "Other Intangible Gas Capital" and the appraised 
 values of the constituent parts shall be charged to the appro- 
 priate accounts as designated in the following definitions of 
 accounts for fixed capital. 
 
 If the actual money value of the consideration given was 
 not in excess of such appraised value, such money value shall 
 be distributed through the said accounts in proportion to the 
 said appraised value of the constituent parts appropriate to 
 
the respective accounts. Full report of the contract of 
 acquisition, the consideration given therefor, the determination 
 of the actual money value of such consideration, the appraisal 
 and the amounts charged to the respective accounts for each 
 plant or other such fixed capital purchased, will be required to 
 be made to the Public Service Commission. 
 
 COSTS OF NEW CAPITAL. 
 
 All charges made to capital or other accounts on or after 
 July 1, 1911, shall l>e the actual money cost of the things in 
 respect of which they are made. When the consideration 
 actually given for. the thing in respect of which a charge to a, 
 capital account is made is anything other than money, the 
 actual consideration shall be described in the entry with suf- 
 ficient fullness and particularity to identify it, and the amount 
 charged shall be the actual money value of such considera- 
 tion at the time of the transaction. 
 
 COSTS OF LABOR, MATERIALS AND SUPPLIES. 
 
 Cost of labor (employed in construction I includes not only 
 wages, salaries and fees paid employes, but also such personal 
 expenses of employes as are borne by the corporation. 
 
 Cost of materials and supplies consumed in construction is 
 the cost at the place where they enter into construction, in- 
 cluding cost of transportation and inspection when specifically 
 assignable. 
 
 DISCOUNTS ON SECURITIES. 
 
 Discounts upon securities or commercial paper issued in pay- 
 ment for capital are to be provided for in other accounts ami 
 must in no case be charged to capital accounts. 
 
 WITHDRAWALS OK RETIREMENTS. 
 
 When anything is withdrawn or retired from service, the 
 amount at which such thing stood charged in the capital ae- 
 count shall be credited to the capital account in which it stood 
 
charged at the time of withdrawal, and the entry of such credit 
 shall give by name and page of book or other record the original 
 entry of cost of the thing withdrawn. If there is no 
 such original entry, that fact shall be stated in connection 
 with the credit entry. If such amount is not known, it shall 
 be estimated, the facts upon which the estimate is based shall 
 be shown and the amount thus estimated to be the original 
 charge in respect of such thing withdrawn shall be credited. 
 
 PARTICULARS REQUIRED TO BE SHOWN IX ENTRIES. 
 
 Every charge made to a capital account on and after July 
 1. L911, shall show whether the thing in respect to which the 
 charge is made is original capital, or an addition, a betterment, 
 a renewal or a replacement. If the thing is a betterment, re- 
 newal or replacement the entry shall designate the thing en- 
 larged, improved, renewed or replaced and shall state by name 
 and page of book or other record of entry the original cost of 
 such thing enlarged, improved, renewed or replaced. If there 
 is no entry in the accounts showing the cost ( to the corpora- 
 tion ) of such thing bettered, renewed or replaced that fact 
 shall be stated in the entry, and the cost shall be estimated, if 
 not known, and when estimated the basis of such estimate shall 
 be shown. 
 
 If any betterment involves the partial destruction or partial 
 reconstruction of the thing bettered, only such portion of the 
 cost of the change shall be charged as a betterment as will when 
 added to the original cost (estimated if not known) of the 
 thing bettered give the cost of reconstruction or replacement 
 of the thing as bettered, and the remainder of the cost of 
 change (account being taken of any salvage) shall be charged 
 to the appropriate repair account. 
 
 First entries to all capital accounts in respect of any par- 
 ticular thing shall describe it with such particularity as to en- 
 able its identification and shall give it a. distinguishing name, 
 number, or other designation by which it shall thereafter be 
 designated in every entry in any capital account which in 
 any way concerns it. 
 
10 
 
 DEFINITIONS. OF FIXED CAPITAL ACCOUNTS. 
 
 In the following definitions of accounts the numbers pre- 
 fixed to the titles are inserted solely for convenience of refer- 
 ence and are no part of the titles or definitions. The initials 
 "P. A." affixed to the titles indicate the "Primary accounts." 
 
 I— FIXED CAPITAL JUNE 30, 1911. 
 
 Charge to this account all the Fixed Capital (that is, the 
 total cost of all land, plant, equipment, apparatus, etc., other 
 than materials and supplies, hand and other small tools) of 
 the accounting person or corporation as such capital stood at 
 the close of June 30, 1911. Such charges shall be made at the 
 figures at which such capital was carried on the books of the 
 said person or corporation on that date. When any capital 
 included in such account is retired from service, the amount 
 at which it is charged therein shall be credited to this account ; 
 and the amount originally charged to capital, less any salvage 
 that may occur, shall be concurrently charged to the account 
 "Reserve for Depreciation" (or equivalent account carried on 
 the books on June 30, 1911, unless there was carried on the 
 books at that date a reserve to cover retirements of capital 
 from service, in which case the said concurrent charge shall be 
 made to such retirement account. If the amount at which 
 said capital in service on June 30, 1911 (and subsequently re- 
 tired from service) was included in the said account is not 
 disclosed on the books and records of the accounting person or 
 corporation and is not within the knowledge of such person 
 or corporation or officers or other employes thereof, it shall 
 be estimated and such estimated amount shall be treated as is 
 above directed for the actual amount, the fact of estimation be- 
 ing stated in the entry. 
 
 The Following Capital Accounts Are Prescribed For Trans- 
 actions Subsequent to June 30, 1011. 
 
 II— ORGANIZATION.— P. A. 
 
 Charge to this account all fees paid to governments for the 
 privilege of incorporation, and all office and other expenditure 
 
11 
 
 incident to organizing the corporation or other enterprise and 
 putting it in readiness to do business. This includes cost of 
 preparing and distributing prospectuses, cost of soliciting sub- 
 scriptions for stock (but not for loans nor for the purchase of 
 bonds or other evidence of indebtedness), cash fees paid to 
 promoters, and the actual cash value at the time of organiza- 
 tion of securities paid to promoters for their services in organ- 
 izing the enterprise, counsel fees, cost of preparing and issuing 
 certificates of stock, and cost of procuring certificates of neces- 
 sity from state authorities, and other like costs. Like costs 
 incident to preparing and filing certificates of authorization 
 of increase of capital stock, and to the negotiation and issue 
 of stock thereunder, shall be classed as additions. Cost of 
 preparing and filing certificates of amendment of articles of 
 incorporation shall be classed as a betterment. This account 
 shall not include any discounts upon stocks or other securities 
 issued, nor shall it include any costs incident to negotiating 
 loans or selling bonds or other evidence of indebtedness. 
 
 12— ROYALTIES, FRANCHISES AND LICENSES.— P. A. 
 
 Charge to this account the cost of royalties or licenses paid 
 to licensors, and payments to city, town or state (exclusive of 
 taxes) for franchises. If any such franchise has a life of not 
 more than one year after the date when it is placed in service, 
 it shall not be charged to this account, but to the appropriate 
 accounts in "Operating Expenses," and in "Prepayments'' if 
 extending beyond the fiscal year. 
 
 13— MANUFACTURING PLANT.— P. A. 
 
 131 — Land. 
 
 Charge to this account the cost of all land used in the opera- 
 tions of the corporation, including rights of way for transmis- 
 sion and distribution lines and for canal and pipe lines, water 
 rights, rights of pondage, flowage and submersion. Such cost 
 includes cost of registration of title, cost of examination of 
 title, conveyancer's and notary's fees, purchasing agent's com- 
 mission or fees, or purchasing agent's salary, taxes accrued to 
 
12 
 
 date of transfer of title and all liens upon the title accrued to 
 date of transfer of title and all liens upon the title acquired; 
 also costs of obtaining consents and payments for abutting 
 damages. This account should also include the cost of wreck- 
 ing or removing any buildings thereon, less the salvage, to pre- 
 pare the land for the corporation's purposes. 
 
 NOTE. — Cost of buildings and other improvements must not be in- 
 cluded in this account. 
 
 132 — Buildings and Structures. 
 
 Charge to this account the cost of the power plant, sub- 
 station, and all other buildings, also of all fixtures perma- 
 nently attached thereto and made a part thereof, such as water 
 pipes and fixtures, steam pipes and fixtures for lighting, warm- 
 ing and ventilating, gas pipes and fixtures for lighting, elec- 
 tric wiring and fixtures for lighting, signaling, and the like, 
 elevators and the motive power for operating same, and heat- 
 ing apparatus. This account also includes stacks and such 
 piers and other foundations for machinery and apparatus as 
 are designated to be as permanent as the buildings in which 
 they are constructed and to outlast the first machinery or ap- 
 paratus mounted thereon. Charge also the cost of architect's 
 plans and of superintendence of construction. 
 
 133 — Holders. 
 
 Charge to this account the cost of all holders at works and 
 outlying stations, including tanks, foundations, holders, frame 
 work, guides, pulleys, etc., and inlet and outlet valves of such 
 holders. 
 
 134 — Furnaces, Boilers and Accessories. 
 
 Charge to this account the cost of all furnaces, boilers, and 
 boiler apparatus and accessories devoted to the production of 
 steam for use in producing gas and in furnishing motive power 
 in gas works and stations. This includes boilers and valves 
 thereto attached, appurtenant furnaces and grates, and Hues 
 leading to smokestacks and chimneys, and the specially pro 
 
13 
 
 vided foundations and settings of such boilers and appur- 
 tenances; also iron smokestacks. It also includes mechanical 
 stokers and other like apparatus for regulating the supply of 
 fuel, feed a^id hot water heaters and economizers, injectors, 
 filters, feed pumps, blower engines, coal conveyors, ash con- 
 veyors, water pipes, steam traps, drains, and separators, and 
 pipes for conducting steam from the boiler to engine, to con- 
 densers, or to the gas generators, exhaust pipes, etc. It does 
 not include steam pipes whose primary purpose is the heating 
 of buildings. 
 
 135 — Steam Engines. 
 
 Charge to this account the cost of all steam engines devoted 
 to use as prime movers in gas works. This includes the 
 specially provided foundations and settings of such engines. 
 The engine, whether reciprocating or rotary (such as steam 
 turbines), shall be considered to include the throttle or inlet 
 valve and the governor; also condensers and air pumps, but 
 not the steam pipe leading from the boiler, nor the exhaust 
 pipe. 
 
 136 — Gas Engines. 
 
 Charge to this account the cost of all gas engines devoted to 
 use as prime movers in gas works and stations. This includes 
 the specially provided foundations and settings of such en- 
 gines. The engine includes the inlet valve and governor, and 
 ignition and starting apparatus, but not the pipe leading from 
 the gas holder, nor the exhaust pipe. 
 
 137 — Miscellaneous Power Plant Equipment. 
 
 Charge to this account the cost of all miscellaneous power 
 plant equipment at gas works which is not includible in any 
 of the foregoing accounts. This includes such mechanical ap- 
 paratus as belts, pulleys, hangers, countershafts, and other ap- 
 paratus intermediary between prime movers and the apparatus 
 operated, cranes, hoists, etc., and machine tools and such other 
 tools at power plants as are proper to be capitalized, etc. 
 
14 
 
 138 — Benches and Retorts. 
 
 Charge to this account the cost of all benches and retorts 
 devoted to the production of coal gas. This iucludes the cost 
 of the specially provided foundations and settings and auxili- 
 ary piping, including foul and hydraulic mains. 
 
 139 — Water Gas Sets and Accessories. 
 
 Charge to this account the cost of sets and accessories de- 
 voted to the production of water gas, including the cost of 
 specially provided foundations and settings for such sets. 
 
 This also includes the cost of generators, carbureters, super- 
 heaters, seals and piping connected therewith and blast ap- 
 paratus, oil and steam supplying apparatus, oil heaters, etc. 
 It does not include pipes whose primary purpose is the warm- 
 ing of buildings. 
 
 140 — Purification Apparatus. 
 
 Charge to this account the cost of all purification apparatus, 
 such as condensers, washers, scrubbers, purifiers, tar extract- 
 ors, etc., and their auxiliary apparatus and piping, including 
 the cost of specially provided foundations and settings. 
 
 141 — Accessory Equipment at Works. 
 
 Charge to this account the cost of all equipment at works, 
 substations and holder stations which is not includible under 
 any of the foregoing accounts. This includes exhausters, sta- 
 tion meters, governors, etc.; apparatus for charging retorts; 
 conveyors for disposing of coke and other products and re- 
 siduals ; tar and ammonia apparatus, pumps, pipes, tanks, etc. 
 
 15— TRANSMISSION AND DISTRIBUTION.— P. A. 
 
 I 
 
 % 1 
 
 151 — Land. 
 
 Charge to this account (he cost of all land used in the opera 
 lions of the corporation, including rights of way for transuiis 
 
15 
 
 sion and distribution lines and for canal and pipe lines, water 
 rights, rights of pondage, flowage and submersion. Such cost 
 includes cost of registration of title, cost of examination of 
 title, conveyancer's and notary's fees, purchasing agent's com- 
 missions or fees, or purchasing agent's salary, taxes accrued 
 to date of transfer of title and all liens upon the title accrued 
 to date of transfer of title and all liens upon the title acquired; 
 also costs of obtaining consents and payments for abutting 
 damages. This account should also include the cost of wreck- 
 ing and removing any buildings thereon, less the salvage, to 
 prepare the land for the corporation's purposes. 
 
 NOTE.— Cost of buildings and other improvements must not be in- 
 cluded in this account. 
 
 152 — Trunk Lines and Mains. 
 
 Charge to this account the cost of all trunk lines and mains 
 in place on June 30, 11)11. This includes all pipe lines from 
 yard connections to district holders, and from the works gov- 
 ernors to the beginnings of services, including the cost of all 
 trenching, etc., necessary to the placing of the pipe, and the 
 cost of filling trenches, restoring the surface to its former con- 
 dition or to that required by the municipal authorities at the 
 time the line is installed. 
 
 I53 — Street Mains, Extension and Improvement. 
 
 This account is intended to show the total cost of labor 
 and material of all new mains laid and the cost of laying new 
 street mains to replace old mains subsequent to July 1, 1911. 
 
 In case new mains are laid charge this account with the cost 
 of all labor and material, including cartage, city permits, 
 trenching, paving, etc. 
 
 In case of old mains, laid before July 1, 1911, replaced by 
 mains of larger size, charge this account and credit "Trunk 
 Lines and Mains" with the original cost of old mains when 
 laid, less present value of material recovered and taken into 
 storeroom. If original cost cannot be arrived at, use estimated 
 cost based upon present cost of laying same size pipe. 
 
16 
 
 In case of old main, laid before July 1, 1911, and abandoned 
 and left in the ground, charge "Reserve for Depreciation" and 
 
 credit "Trunk Lines and Mains" with the original cost of the 
 old main when laid. If original cost cannot be arrived at, use 
 estimated cost based upon present cost of laying same size pipe. 
 
 NOTE.— Debits to this account and to "Reserve for Depreciation" for 
 mains abandoned must be analyzed in the report to the Public Service 
 Commission. 
 
 154 — Gas Services. 
 
 Charge to this account the cost of the corporation's property 
 in service pipes and appurtenances in or leading to consumers' 
 premises. This includes the cost of material in place, cost of 
 trenching for placing services, and of filling trenches and re- 
 storing surface to proper condition. 
 
 NOTE A. — When consumers are required to pay some or all of the 
 cost of services only that portion of the cost not chargeable to the con- 
 sumer is chargeable to this account. 
 
 NOTE B— The cost of renewing or modifying services shall not be 
 charged to this account. 
 
 155 — Gas Meters. 
 
 Charge to this account the cost of the corporation's property 
 in all meters and appurtenances used in measuring the gas 
 delivered consumers. 
 
 , NOTE A. — This account does not include the cost of the corporation's 
 meters at the works. Such cost shall be charged to account No. 23, 
 "Accessory Equipment at Works." 
 
 NOTE B— The cost of setting, removing, or re-setting such meters 
 shall not be charged to this account. 
 
 15 6 — Gas Meter Installation. 
 
 Charge to this account the cost of labor and materials (ex- 
 clusive of cock and connections) of the first set ling of meters 
 for determining the amount of gas delivered to consumers, in 
 
IT 
 
 case it is the policy of 1h< corporation to capitalize the cost of 
 such setting. 
 
 16— MUNICIPAL STREET LIGHTING FIXTURES.— P. A. 
 
 Charge to this account the cost of the corporation's property 
 in the lamps, posts, and auxiliary apparatus and appliances 
 used in lighting streets for a municipal corporation. Such 
 cost includes not only cost of material but also cost of first 
 setting and coupling up. It does not include cost of removal 
 or change of position. 
 
 NOTE. — Where the municipality requires for its special benefit the 
 extension of mains and services for street lighting, such extensions 
 may, so long as used solely for street lighting, be charged to this ac- 
 count, provided a full description of the extensions so charged and the 
 amounts charged in respect thereof be filed with the Public Service 
 Commission on or before the date when the entry thereof is made upon 
 the books of the corporation. 
 
 3 7— (IAS ENGINES AND APPLIANCES.— P. A. 
 
 Charge to this account the cost of the corporation's property 
 in gas engines leased to consumers (including municipal corpo- 
 rations), but not those held for purposes of sale. Such en- 
 gines include all appliances for the production of mechanical 
 motion through the consumption of gas. Also charge to this 
 account the cost of the corporation's property in all gas stoves 
 and other heating appliances leased to consumers, but not 
 those held for purposes of sale. This includes stoves, ranges, 
 heaters, hot plates, sadirons, tailors' irons and gooses, and 
 other like devices and appliances consuming gas for the direct 
 production of heat. 
 
 NOTE. — The cost of setting and connecting such engines and heating 
 appliances on the premises of consumers and the cost of re-setting or of 
 removal shall not be charged to this account. 
 
18 
 IS— GENERAL OFFICE AND BRANCHES.— P. A. 
 
 181 — Land. 
 
 Charge to this account the cost of all land used in the opera- 
 tions of the corporation, including rights of way for transmis- 
 sion and distribution lines and for canal and pipe lines, water 
 rights, rights of pondage, flowage and submersion. Such cost 
 includes cost of registration of title, cost of examination of 
 title, conveyancer's and notary's fees, purchasing agent's com- 
 missions or fees, or purchasing agent's salary, taxes accrued 
 to date of transfer of title and all liens upon the title accrued 
 to date of transfer of title and all liens upon the title acquired ; 
 also costs of obtaining consents and payments for abutting 
 damages. This account should also include the cost of wreck- 
 ing or removing any buildings thereon, less the salvage, to 
 prepare the land for the corporation's purposes. 
 
 NOTE. — Cost of buildings and other improvements must not be in- 
 cluded in this account. 
 
 182 — Buildings and Structures. 
 
 Charge to this account the cost of the power plant, sub- 
 station, and all other buildings, also of all fixtures perma- 
 nently attached thereto and made a part thereof, such as water 
 pipes and fixtures, steam pipes and fixtures for lighting, warm- 
 ing and ventilating, gas pipes and fixtures for lighting, electric 
 wiling and fixtures for lighting, signaling, and the like, eleva- 
 tors and the motive power for operating same, and heating 
 apparatus. This account also includes stacks and such piers 
 and other foundations for machinery and apparatus as are 
 designated to be as permanent as the buildings in which they 
 are constructed and to outlast the first machinery or apparatus 
 mounted thereon. Charge also the cost of architect's plans 
 and of superintendence of construction. 
 
 183 — Furniture and Fixtures. 
 
 Charge to this account the cost of all equipment of general 
 offices, such as desks, chairs, tables, movable safes, filing 
 
19 
 
 cases, drafting room equipment, and other like office appliances 
 and equipment ; also engineering instruments. 
 
 19— OTHER EQUIPMENT.— P. A. 
 
 191 — Land. 
 
 Charge to this account the cost of all land used in the opera- 
 tions of the corporation, including rights of way for transmis- 
 sion and distribution lines and for canal and pipe lines, water 
 rights, rights of pondage, tiowage and submersion. Such cost 
 includes cost of registration of title, cost of examination of 
 title, conveyancer's and notary's fees, purchasing agent's com- 
 missions or fees, or purchasing agent's salary, taxes accrued to 
 date of transfer of title and all liens upon the title accrued to 
 date of transfer of title and all liens upon the title acquired; 
 also costs of obtaining consents and payments for abutting 
 damages. This account should also include the cost of wreck- 
 ing or removing any buildings thereon, less the salvage, to pre- 
 pare the land for the corporation's purposes. 
 
 NOTE. — Cost of buildings and other improvements must not be in- 
 cluded in this account. 
 
 192 — Buildings and Structures. 
 
 Charge to this account the cost of the power plant, sub- 
 station, and all other buildings, also of all fixtures perma- 
 nently attached thereto and made a part thereof, such as water 
 pipes and fixtures, steam pipes and fixtures for lighting, warm- 
 ing and ventilating, gas pipes and fixtures for lighting, elec- 
 tric wiring and fixtures for lighting, signaling, and the like, 
 elevators and the motive power for operating same, and heat- 
 ing apparatus. This account also includes stacks and such 
 piers and other foundations for machinery and apparatus as 
 are designated to be as permanent as the buildings in which 
 they are constructed and to outlast the first machinery or 
 apparatus mounted thereon. Charge also the cost of architect's 
 plans and of superintendence of construction. 
 
20 
 
 193 — Gas Tools and Implements. 
 
 Charge to this account as follows : 
 
 (a) The cost of all tools and implements coming within the 
 scope of the definition of fixed capital (that is, having an ex- 
 pectation of life in service of more than one year) and not cov- 
 ered by any of the foregoing equipment accounts. 
 
 194 — Laboratory Equipment. 
 
 Charge to this account the cost of all physical and chemical 
 apparatus used in testing, and other technological work, and of 
 all equipment in laboratories used for technological work, such 
 as calorimetry, photometry, chemical analysis, and the like; 
 also all equipment for testing building and other materials 
 used in the engineering operations of the company. 
 
 NOTE. — This account can be distributed to the appropriate operating 
 accounts monthly, or at close of year, if desired. 
 
 195 — Storeroom Equipment. 
 
 Charge to this account the cost of all equipment in store- 
 rooms, such as counters, shelving, carts, barrels, trucks and 
 other apparatus and appliances used in the handling of mate- 
 rials and supplies. 
 
 NOTE. — This account can be distributed to the appropriate operating 
 accounts monthly, or at close of year, if desired. 
 
 196 — Stable Equipment. 
 
 Charge to this account the cost of all equipment of general 
 stables, including horses, harness, drays, wagons, automobiles 
 and other vehicles. 
 
 NOTE. — This account can be distributed to the appropriate operating 
 accounts monthly, or at close of year, if desired. 
 
21 
 
 20— MISCELLANEOUS CONSTRUCTION EXPENDI- 
 TURES.— P. A. 
 
 Charge to this account expenditures during construction, as 
 follows : 
 
 201 — Engineering and Superintendence. 
 
 Charge to this account all expenditures for services of engi- 
 neers, draftsmen and superintendents employed on preliminary 
 and construction work, and all expenses incident to the work, 
 when such disbursements can not be assigned to specific con- 
 struction. 
 
 202 — Law Expenditures. 
 
 Charge to this account all expenditures incurred in connec- 
 tion with the construction of a gas plant, such as the pay and 
 expense of all counsel, solicitors and attorneys, their clerks 
 and attendants, and expenses of their offices, printing of briefs, 
 legal forms, testimony reports, and the like ; payments to arbi- 
 trators for the settlement of disputed questions, costs of suit 
 and payments of special fees, notarial fees and witness fees, 
 and expense connected with taking depositions; also all legal 
 and court expenses. When any of the expenditures above 
 enumerated can be charged directly to the account for which 
 incurred, they should be so charged, and not to this account. 
 Expenditures in connection with the acquisition of the right 
 of way or other land should be charged to Land. Law ex- 
 penditures in connection with the organization of the corpora- 
 tion should be charged to Organization. 
 
 203 — Taxes. 
 
 Charge to this account all taxes and assessments levied and 
 paid on property belonging to the corporation while under 
 construction and before the plant is opened for commercial 
 operation. 
 
22 
 204 — Interest. 
 
 Charge to this account the interest accrued upon all moneys 
 and credits available upon demand, acquired for use in con- 
 nection with the construction and equipment of the property, 
 from the time of such acquisition until the construction is 
 ready for use. Interest receivable accrued upon such moneys 
 and credits should be credited to this account. To this ac- 
 count should also be credited discounts realized through 
 prompt payment of bills incurred for the particular construc- 
 tion involved. 
 
 205 — Injuries. 
 
 Charge to this account all expenditures incident to injuries 
 to persons when caused directly in connection with construc- 
 tion of the plant or equipment, including payments to physi- 
 cians and surgeons, nursing and hospital attendance, medical 
 and surgical supplies, transportation for conveying injured 
 persons and attendants, funeral expenses and all like costs in- 
 cident thereto. 
 
 206 — General Construction Expenses. 
 
 Charge to this account the salaries and expense of executive 
 and general officers of the plant under construction, clerks in 
 general offices engaged on construction accounts or work, rent 
 and repair of offices when rented for construction purposes 
 with the office expenses, insurance during construction ; also 
 all construction and equipment items of a special and inci- 
 dental nature that can not be charged to any other account in 
 this classification. 
 
 21— OTHER TANGIBLE GAS CAPITAL.— P. A. 
 
 Charge to this account the cost of all tangible gas capital not 
 elsewhere provided for. 
 
23 
 
 22— OTHER INTANGIBLE GAS CAPITAL.— P. A. 
 
 Charge to this account the cost of all other property coming 
 within the definition of intangible capital and devoted to gas 
 operations. All entries of charges to this account shall de- 
 scribe the acquired property with sufficient particularity 
 clearly to identify it, and shall show specifically the principal 
 from whom acquired and all agents representing such prin- 
 cipal in the transaction ; also the term of life of such property, 
 estimated if not known, and if estimated, the facts upon which 
 the estimate is based. 
 
 23— TANGIBLE CAPITAL IN OTHER DEPART- 
 MENTS.— P. A. 
 
 Charge to this account the cost of all property of the corpo- 
 ration coining within the definition of tangible capital devoted 
 to other than gas operations. 
 
 DEFINITIONS OF FLOATING CAPITAL ACCOUNTS. 
 
 Floating Capital is divided into two groups, of which the 
 first is herein called Current Assets and the second Materials 
 and Supplies. 
 
 In the following definitions the figures prefixed to the titles 
 of the accounts are no part of the titles and are inserted merely 
 for convenience of reference. 
 
 251— CASH.— P. A. 
 
 Charge to this account all money coining into the possession 
 of the corporation and in which the corporation has the bene- 
 ficial interest. This includes coin of the United States, United 
 States treasury notes, gold and silver certificates and green- 
 backs, and bank bills payable to bearer. Also charge to it all 
 bank credits, checks and drafts receivable, subject to satisfac- 
 tion or transfer upon demand (whether payable to bearer or 
 to order). Credit this account with all cash disbursements 
 of the corporation. 
 
24: 
 
 252— BILLS RECEIVABLE.— P. A. 
 
 Charge to this account the cost of all bills receivable (ex- 
 cept as below provided) which are the property of the corpo- 
 ration and upon which solvent concerns are liable or which 
 are sufficiently secured to be considered good. This account 
 includes demand notes, drafts, etc., issued by others than 
 banks, and time notes, drafts, etc., by whomever issued. This 
 account does not include investments (for which see below) ; 
 nor does it include interest coupons. 
 
 253— ACCOUNTS RECEIVABLE.— P. A. 
 
 Charge to this account all amounts owing to the corporation 
 upon open book accounts with solvent concerns and individ- 
 uals (other than cash deposited in banks) ; also the cost of all 
 accounts and claims upon which responsibility is acknowledged 
 by solvent concerns or which are sufficiently secured to be con- 
 sidered good, and of all judgments against solvent concerns 
 Avhere the judgment is not appealable or suspended through 
 appeal. This account does not include negotiables. 
 
 254— OTHER CURRENT ASSETS.— P. A. 
 
 Charge to this account the cost of all current assets of the 
 corporation which are not includible under any of the last 
 three foregoing accounts. By current assets are meant only 
 those things which are readily convertible into money and 
 which are held with the intent of being presently converted 
 into money and not as investments. 
 
 255— MATERIALS AND SUPPLIES.— P. A. 
 
 Charge to this account the cost (including transportation) 
 of all materials and supplies which are not debited, on re- 
 ceipt, directly to the construction or operating expense ac- 
 count for which they are purchased, regardless of whether the 
 same are intended to be consumed in construction or in opera- 
 tion, or later to be sold. 
 
Where discounts recovered through prompt payment arc not 
 credited to the particular bills, the cost at which such ma- 
 terials and supplies shall be charged shall be the invoice price 
 and any discounts later recovered through prompt payment 
 for such bills and supplies shall be credited to this account. 
 
 When any materials or supplies, the cost of which has been 
 charged to this account, are issued for use, the cost of the same 
 shall be credited to ''Materials and Supplies" and debited to 
 the proper construction or operating expense account. 
 
 Inventories of materials and supplies shall be taken at least 
 annually, and any shortages or overages xlisclosed by such in- 
 ventories shall be credited or debited to this account and 
 debited or credited to the operating expense account No. — , "In- 
 ventory Adjustments," in case they cannot be assigned to 
 specific accounts. 
 
 L »r,(i— l NVESTMENTS.— P. A. 
 
 By Investments, as here used, are meant all properties or se 
 curities acquired for use in present operations, as a means of 
 obtaining or exercising control over other corporations, or for 
 income to be derived from them, or for a rise in value, or for 
 devotion to future operations at a time when it seems probable 
 that they cannot be so advantageously acquired as at the time 
 of actual acquisition. The cost of the corporation's title to 
 any property or securities held as an investment for other than 
 the Sinking Funds shall he charged to this account. 
 
 257— SINKING FINDS, INVESTED.— P. A. 
 
 To this account should be charged the cost of live securities 
 in the hands of trustees for the purpose of redeeming outstand- 
 ing obligations. This should not include any reacquired securi- 
 ties issued by the respondent. 
 
 258— SINKING FINDS, UNINVESTED.— P. A. 
 
 To this account should be charged the amount of cash set 
 aside for investment for the Sinking Funds; also amounts de- 
 posited with a trustee on account of mortgaged property sold. 
 
26 
 259— SPECIAL DEPOSITS.— P. A. 
 
 By Special Deposits, as here used, are meant amounts <»t' 
 money and bank credits in the hands of fiscal or other agents 
 of the corporation for the payment of coupons, dividends or 
 other .special purposes. 
 
 Charges to this account shall specify the purpose for which 
 the deposit is made. When such purposes are satisfied this 
 account shall be credited with the amount specially deposited 
 to provide such satisfaction. 
 
 260— PEEPAY^I ENTS.— P. A. 
 
 When prepayments for taxes, insurance, rents and the like 
 are made in advance of the actual accrual thereof, the amount 
 of the advance payment shall be charged to this account. As 
 such taxes, etc., accrue this account shall be credited and the 
 appropriate expense or income account be charged. 
 
 When prepayments are made for any other thing than taxes, 
 insurance and rents, etc.. such prepayments shall be charged 
 to this account; and as the purpose of prepayment is satisfied, 
 proportionate amounts shall be credited monthly to this ac- 
 count and charged to the appropriate expense or income ac- 
 count. 
 
 NOTE. — By the accrual of taxes, insurance, rents, etc., is meant 
 their accumulation when considered as spread uniformly over the 
 period to which they apply. Thus, if the rent fixed by contract of leaso 
 for a certain property is $600 for a calendar year, this accrues at the 
 rate of $50 each month, regardless of the actual times when the rent 
 matures; $50 should thus (if the rent has been prepaid) be credited 
 each month to this account and concurrently charged to the appro 
 priate account in the "Income" account. Similarly in the case of other 
 prepayments. 
 
 261— UNEXTINGUISHED DISCOUNT ON SECURI- 
 TIES.— P. A. 
 
 When capital stocks, funded debt, securities and other evi- 
 dences of indebtedness are disposed of for a consideration 
 whose cash value is less than the sum of the par value of the 
 securities or other evidences of indebtedness and of the interest 
 
thereon accrued at the time the transfer takes place, the ex- 
 cess of such sum of the par value and accrued interest over 
 the cash value of the consideration received shall be charged 
 to this account. 
 
 To this account shall also be charged all expense connected 
 with the issue and sale of evidences of debt, such as fees for 
 drafting mortgages and trust deeds, fees and taxes for record- 
 ing mortgages and trust deeds, cost of engraving and printing- 
 bonds, certificates of indebtedness and other commercial paper 
 having a life of more than one year, fees paid trustees provided 
 for in mortgages and trust deeds, fees and commissions paid 
 underwriters and brokers for marketing such evidences of debt 
 and other like expense. At or before the close of each fiscal 
 period thereafter, a proportion of such discount and expense 
 based upon the life of the security to maturity shall be cred- 
 ited to this account and charged to account No. , "Extin- 
 guishment of Discount on Securities." Such discount and ex- 
 pense may, it' desired, be extinguished more rapidly through 
 charges of all or any part of it, either at the time of issue or 
 later, to the year's ''Corporate Surplus or Deficit" account. 
 
 •nvi— scspexse.— 1». a. 
 
 To this account shall be made all debits not elsewhere dis- 
 tributed or provided for, or the final disposition of which is un- 
 certain. This will include all such matters as expense of work 
 not yet completed and of preliminary surveys, plans, investiga- 
 tions, etc.. made for determining the feasibility of projects 
 under contemplation. 
 
 Should any such project later be carried to completion, such 
 amounts shall be credited to this account and charged to the 
 proper capital or expense account. Should it be abandoned, 
 such amounts shall be charged to "Miscellaneous Non-Oper- 
 ating Expense" account. 
 
 263— RE- ACQUIRED SECURITIES.— 1\ A. 
 
 When securities, whether funded debt or stocks, have been 
 actually issued to bona fide holders for value (or after such 
 issue by another corporation have been assumed by the ac- 
 
28 
 
 counting' corporation), and after such issue (or assumption) 
 have been acquired by the corporation under circumstances 
 which requires that they should not be treated as paid or re- 
 tired, they shall be charged at their cost to this account. 
 
 DEBT DEFINED. 
 
 The word debt, as here used, covers all absolute obligations 
 to pay money at a definite time or times, or at a time or times 
 which are capable of being made definite by demand, or other 
 act of the creditor. It does not cover contingent obligations, 
 such as obligations to pay rent for future enjoyment of the 
 term, liabilities of indorsers upon paper not yet defaulted, etc. 
 
 Debt is divided into Funded Debt and Unfunded Debt. 
 
 271— FUNDED DEBT.— P. A. 
 
 Funded Debt comprises all debt which by the terms of its 
 creation does not mature until more than one year after date 
 of creation. Funded Debt is classified as: 
 
 (a) Real Estate Mortgage Bonds. 
 
 Those secured by a pledge of real estate through mortgage 
 or trust deed, or equivalent instrument or act. Such mort- 
 gage may also include equipment, securities and other chattels. 
 
 (5) Collateral Trust Bonds. 
 
 Those secured by a pledge of Securities or other commercial 
 paper through trust deed or equivalent instrument or act, but 
 not covering real estate or equipment. 
 
 (c) Equipment Trust Obligations. 
 
 Those secured by a lien upon equipment, such lien being 
 created in connection with lite acquisition of the equipment. 
 
 (d) Plain Bonds. 
 
 Those not secured by any Special mortgage or other lien, 
 but supported only by the general credit of the issuer. 
 
29 
 
 (e) Debentures. 
 
 Unsecured certificates of indebtedness. 
 
 Debentures with mortgage rights are those entitled, in ac- 
 cordance with the terms of the contract under which they are 
 issued, to participate in the benefits of any subsequently 
 created mortgages. If debentures run in perpetuity, subject 
 1o an annual interest charge, they are called debenture stock. 
 
 (f) Income Bonds. 
 
 Those upon which the obligation to pay interest is contingent 
 upon the income of the corporation not required for the dis- 
 charge of superior obligations. 
 
 (g) Miscellaneous. 
 
 Including real estate mortgages, pledging specified real es- 
 tate to secure payment of a debt not evidenced by a note, bond 
 or other negotiable paper; and chattel mortgages, pledging 
 specified chattels to secure the payment of a debt not evidenced 
 by a note, bond or other negotiable paper. Also promissory 
 notes, running for more than one year from the date thereof, 
 not secured by mortgage or other lien. 
 
 UNFUNDED DEBT. 
 
 The accounts for unfunded debt are defined as follows : 
 
 272— TAXES ACCRUED.— P. A. 
 
 Credit to this account at close of each month the taxes ac- 
 crued during the month, and make corresponding charges to 
 the "Taxes" account. Credits to the account "Taxes Accrued'' 
 will necessarily be based upon estimate until the amount of 
 tax levied for the tax period is known ; such estimates shall be 
 based upon the best data available and as soon as the amount 
 of tax for the period is known the account shall be adjusted 
 to conform. When any tax is paid it shall be charged to this 
 account and credited to "Cash" or other suitable account. 
 
30 
 
 273— INTEREST ACCRUED ON FUNDED DEBT.— P. A. 
 
 Credit to this account, as it becomes payable (or monthly 
 if desired) the interest accrued on the funded debt of the cor- 
 poration and charge same to the account No. — , "Interest 
 on Funded Debt." When such interest is paid it shall be 
 charged to this account and credited to "('ash" or other suit 
 able account. 
 
 274— INTEREST ACCRUED ON UNFUNDED DEBT.— P. A. 
 
 Credit to this account, at the close of the year, all accrued 
 interest on the unfunded debt of the corporation and charge 
 same to the account No. — , "Interest on Unfunded Debt.'' 
 This does not include any interest on judgments, nor that on 
 receiver's certificates. The interest accruing on any judgments 
 against the corporation or upon any receiver's certificate shall 
 be credited to the account to which such judgment or receiver's 
 certificate stands credited and charged to the account No. — , 
 "Interest on Unfunded Debt." 
 
 275— JUDGMENTS UNPAID.— P. A. 
 
 "When any judgment of indebtedness is rendered by a Court 
 of competent jurisdiction against the corporation, or any fine 
 or penalty requiring the payment of money is assessed by such 
 a court against the corporation, and no appeal accompanied 
 by stay of execution has been taken therefrom within the time 
 allowed by law for such appeal, the amount of such judgment 
 shall be credited to this account, and the entry shall designate 
 the action or suit as a consequence of which such judgment is 
 pronounced or such fine or penalty assessed. The designation 
 ojf the action or suit shall show the court, the term thereof, 
 the parties and the character of the action or suit. Interest 
 accruing upon any such judgment shall be credited to this 
 account and charged to the account No. 4G2, "Interest on Un- 
 funded Debt." 
 
31 
 
 276— RECEIVER'S CERTIFICATE. 
 
 When any receiver acting under the orders of a competent 
 Court is in possession of the property of the corporation and 
 under the orders of such court issues certificates of indebted- 
 ness chargeable upon such property, the par value of such cer- 
 tificates shall be credited to this account. Interest accruing 
 upon such certificates shall also be credited monthly or quar- 
 terly to this account and charged to the account No. — , "In- 
 terest on Unfunded Debt." 
 
 277— BILLS PAYABLE. 
 
 When any note, draft or other bill payable which matures 
 not later than one year after date of issue, or of demand, or 
 assumption by the corporation of primary liability thereon, is 
 issued or assumed, the par value thereof .shall be credited to 
 this account and when it is paid it shall be charged to this ac- 
 count and credited to "Cash" or other suitable account. 
 
 278— CONSUMER'S I >EP< >SITS— GAS. 
 
 Credit to this account, as such deposits are made, all cash 
 deposited with the corporation as security for the payment of 
 gas bills. Deposits refunded shall be charged to this account 
 and credited to "Cash." Deposits applicable to uncollectible 
 or worthless gas bills shall, at the close of the fiscal year (or 
 earlier, at the option of the accounting corporation) be 
 credited to the account of the consumer involved and debited 
 to this account. 
 
 279— ACCOUNTS PAYABLE. 
 
 Credit to this account when incurred all liabilities of the 
 corporation upon open accounts, except those provided for in 
 the foregoing account, "Consumer's Deposits." This shall in- 
 clude at the close of the fiscal year all unpaid bills for appara- 
 tus, materials and supplies, not previously credited, ami also 
 all salaries and wages due and unpaid. 
 
32 
 
 280— DIVIDENDS PAYABLE. 
 
 When any dividend is declared it shall be credited to this 
 account and here remain until it is paid, when it shall be 
 charged to this account and credited to "Cash" or other suit' 
 able account. 
 
 281— OTHEB UNFUNDED DEBT. 
 
 Credit to Ihis account all unfunded debt upon which the 
 corporation is liable and which is nut elsewhere provided for. 
 
 RESEBYES. 
 
 Beserves shall be classirted as Contractual and Optional. 
 Contractual Reserves are reserves necessitated by contracts of 
 the corporation as e. g. reserves to cover sinking funds pro- 
 vided for in mortgages. Optional Reserves are such tem- 
 porary reserves as are created solely within the discretion of 
 the corporation. 
 
 2S2— SINKING FUND RESERVES.— P. A. 
 
 Credit to this account all appropriations and accumulations 
 made in accordance with the contract provisions provided for 
 in mortgages, etc., or which shall be required by action of the 
 corporation. 
 
 283— BESERVE FOB ACCRUED DEPKECIATION.— P. A. 
 
 At the close of each year, after July 1. 1911, the amounts 
 charged to the various repair (or Maintenance) accounts dur- 
 ing the year shall be compared with the amount estimated to 
 be necessary to cover such wear and tear and obsolescence ami 
 inadequacy as have accrued during the year in the tangible 
 capital of the corporation, such portion of tin 1 life of the intan- 
 gible fixed capital as has expired or been consumed during the 
 year, and the amount estimated to be necessary to provide a 
 reserve to cover the cost of property destroyed by exlraordi- 
 narv casualties. If the estimated deterioration exceeds the 
 
total repairs, the accounl "Depreciation of Plant" shall be 
 
 debited and the reserve account No. , "Reserve for Accrued 
 
 Depreciation," credited with an amount equal to the excess; if 
 the sum of the repairs exceeds the estimated deterioration, the 
 account "Reserve for Accrued Depreciation" shall be debited 
 and "Depreciation* of Plant" credited with an amount equal to 
 the excess. The net amount charged (or credited! to this ac- 
 count for any year, and concurrently credited (or charged) to 
 the reserve account "Reserve for Accrued Depreciation" must 
 be sufficient to provide in that account in respect of the sev- 
 eral items of plant, by the time such items go out of service, a 
 reserve equal to the original cost thereof, less salvage. 
 
 284— OPTIONAL RESERVES.— P. A. 
 
 When any admitted liability arises because of loss or dam- 
 age to the property of others, or of injuries to employes or 
 other persons, the amount of the liability may (if not pre- 
 viously provided for by insurance or self-insurance) be charged 
 to the appropriate expense or other accounts and credited to 
 this account, against which (in such case) the actual cost of 
 satisfaction of the liability shall be charged when the matter 
 is determined. If the extent of the liability can not be ascer- 
 tained promptly after the liability arises, it may be estimated 
 as accurately as practicable for the purpose of determining the 
 immediate charge to the expense or other appropriate account, 
 in which case the matter shall be adjusted when the extent of 
 the liability is definitely ascertained. If the loss is of such 
 character that it is in whole or in part indemnifiable under any 
 contract of insurance carried by the corporation, the indemni- 
 fiable portion of the loss shall be charged to the insurer and 
 credited to "Optional Reserves." 
 
 When any amount is set aside for any special reserve not 
 provided for heretofore, a sub-account shall be made for each 
 particular reserve and its title shall designate the purpose of 
 such reserve, and the first entry therein shall express in full 
 such purpose. 
 
285— PREMIUMS ON CAPITAL STOCK.— P. A. 
 
 When any capital stocks are disposed of for a consideration 
 whose cash value is greater than the sum of the par value of 
 such stocks, the excess of the cash value of such consideration 
 over the sum of the par value of the stocks shall be credited to 
 this account. At the close of each fiscal year a proportion of 
 such premium based upon the life of the stock shall be charged 
 to this account and credited in the "Revenue" account ; or at 
 the option of the corporation such premium may be extin- 
 guished more rapidly through credits of all or any part thereof, 
 either at the time of issue or later, to the year's "Corporate 
 Surplus or Deficit" account. 
 
 CAPITAL STOCK. 
 
 By stocks of a corporation are meant those securities which 
 represent permanent interests in the corporation or interests 
 which, if terminal, are so only at the option of the corporation. 
 
 Stocks are classified as common stocks and preferred stocks. 
 
 286— C< )M M( )N ST< )( 'K— P. A. 
 
 Common stocks are those whose claims in the distribution 
 of dividends are subordinate to the claims of all other stocks. 
 
 286A— PREFERRED STOCKS. 
 
 Preferred stocks are those which have the first claim upon 
 such dividends as may be distributed. They may be cumu- 
 lative or non-cumulative, participating or non-participating. 
 
 If cumulative, the amount by which the dividend, at any 
 dividend period fails to reach the stipulated rate, is carried 
 forward to continue as a claim upon dividends until satisfied, 
 if non-cumulative, such amount lapses. 
 
 If a preferred stock is participating, it is not limited to the 
 Stipulated rate in the amount of dividends which it may re- 
 ceive, but is entitled to participate, in accordance with the 
 terms of the contract under which it is issued, in further divi- 
 dends; if non-participating, it is limited to the stipulated rate. 
 
35 
 
 A separate account shall be kept for each class of stock is- 
 sued, and no two stocks shall be considered of the same class 
 unless tbey are equal in tbeir interest or dividend rights, their 
 voting rights and the conditions under which they may be re- 
 tired. The characteristics of any class of stocks in these re- 
 gards shall be designated in the title of the account raised to 
 cover such stocks and shall be clearly expressed in the first 
 entry in such account. 
 
 If such issue is for money, that fact shall be stated; and if 
 for any other consideration than money, the person to whom 
 issued shall be designated and the consideration for which is- 
 sued shall be described with sufficient particularity to identify 
 it. If the fair cash value of the consideration realized upon 
 the issue of any amount of stock is greater than the par value 
 of such stock, the excess shall be credited to the account No. 
 285, "Premiums on Capital Stock." 
 
 SCHEDULE B. 
 
 INCOME AND INDICANT ACCOUNTS COMPARED. 
 
 A comparison of the balances in the foregoing accounts 
 (Schedule A.) at any time will, if the accounts have been prop- 
 erly kept, show the then existing condition of a corporation's 
 affairs so far as such condition can be shown through accounts. 
 The group of accounts just defined is sometimes called the 
 Balance Sheet or Indicant accounts. Their balances indicate 
 the condition of the corporation at any particular time. These 
 accounts with their subsidiary accounts are all that is neces- 
 sary prior to the time when the corporation becomes what may 
 be called a "going concern. " 
 
 When a corporation begins operations it requires an addi- 
 tional group of accounts in which to classify in convenient 
 form the accounting history of its operations. Such a group 
 of accounts brings together, or accumulates, the account of the 
 various incidents of the corporation's operations. This group 
 of accounts may be called the Income account. They are made 
 up usually on a yearly basis and are closed into one grand ac- 
 count called "Corporate Surplus or Deficit" which ties together 
 this group of accounts and the preceding group (Schedule A.) 
 
3G 
 
 INCOME ACCOUNT. 
 
 Divisions of Income Account. 
 
 The principal divisions of this group of accounts are the 
 Revenue accounts, the Revenue Deduction accounts, the In- 
 conic Deduction accounts and the Appropriation accounts. 
 
 REVENUES DEFINED. 
 
 By Revenues, 
 
 Are meant all amounts of money which the corporation re- 
 ceives or becomes lawfully entitled to receive for services ren- 
 dered, for products sold, as gross profits on merchandise sold, 
 or as a return upon its property, or interests in property. 
 Revenues are classified as : 
 
 (301-309) Operating Revenues. 
 
 Those derived from the sale of products and merchandise, 
 from services rendered and from returns on property used by 
 the person or corporation in its own operations. 
 
 (321-325) 2V on-Operating Revenues. 
 
 Those derived as a return upon property of the corporation 
 in the bands of others, or from its interests in property in the 
 hands of others. They may be sub-classified as Rents, Interest, 
 Dividends and Miscellaneous. 
 
 REVENUE DEDUCTIONS DEFINED. 
 
 Revenue Deductions include: 
 
 Operating Expenses. 
 
 Those necessary l<> the production of the commodities sold 
 and the services rendered and to the collect ion of the revenues. 
 
;:: 
 
 Stable Expenses. 
 
 NOTE.— This account can be distributed to the appropriate operating 
 accounts monthly, or at close of year, if desired. 
 
 Storeroom Expenses. 
 
 NOTE.— This account can be distributed to the appropriate operating- 
 accounts monthly, or at close of year, if desired. 
 
 INCOME DEDUCTIONS DEFINED. 
 
 Income Deductions include: 
 
 Taxes. 
 
 Uncollectible bills. 
 
 Interest on Funded Debt. 
 
 Interest on Unfunded Debt. 
 
 Inventory Adjustments. 
 
 Miscellaneous Non-Operating Expenses. 
 
 APPROPRIATIONS 1 >EFINED. 
 
 Appropriations include : 
 
 Extinguishment of Discount on Securities. 
 
 Depreciation of Plant. 
 Sinking Fund payments. 
 Optional Reserve. 
 Dividends Declared. 
 Miscellaneous. 
 
 DEFINITIONS OF (iAS REVENUE ACCOUNTS. 
 
 Credits to the various revenue accounts shall be made upon 
 tbe basis of bills rendered or of gross prices. Discounts for 
 prompt payment, corrections of overcharges, overcollections 
 theretofore credited and afterward corrected, authorized abate- 
 ments and allowances, and other corrections and deductions 
 shall be charged to the revenue account to which they relate. 
 In the following definitions of accounts the letters and num- 
 
3S 
 
 bers prefixed to the titles are inserted solely for convenience 
 of reference and are no part of the titles or of the definitions. 
 
 301— MUNICIPAL STREET LIGHTING.— P. A. 
 
 Credit to this account all revenues derived from lighting- 
 streets for municipal corporations by means of gas. or from 
 supplying gas therefor. 
 
 302— MUNICIPAL MIXED LIGHTING AND 
 POWER.— P. A. 
 
 Credit to this account all revenues derived from lighting 
 municipal buildings by means of gas, or from gas supplied for 
 such purposes, or for heat or power in municipal buildings 
 where such gas is supplied at lighting rates and is not sepa- 
 rately measured. 
 
 303— MUNICIPAL POWER.— P. A. 
 
 Credit to this account all revenues derived from municipal 
 corporations for gas supplied at special heat or power rates 
 to such corporations for the production of heat and power. 
 
 304— COMMERCIAL LIGHTING.— P. A. 
 
 Credit to this account all revenues derived from all consum- 
 ers except municipal corporations for gas measured through 
 ordinary meters and supplied for lighting at lighting rates. 
 
 NOTE. — Where gas flowing through any ordinary meter is used by 
 any other consumer than a municipal corporation for lighting and inci- 
 dentally for heating or power purposes, the revenues derived therefrom 
 shall be credited to this account. 
 
 Also, all revenues derived from the sale of prepaid gas delivered 
 through so-called "prepayment meters." 
 
 305— COMMERCIAL POWER.— P. A. 
 
 Credit to this account all revenues derived from all con- 
 sumers except municipal corporations for gas supplied for heat 
 or power at special heat or power rates. 
 
306— MISCELLANEOUS SALES OF (IAS.— P. A. 
 
 Credit to this account all revenues derived from gas sold or 
 supplied to other gas corporations to be by them distributed 
 through their own pipes to consumers. If any portion of such 
 gas is incidentally consumed by such corporations for their 
 own benefit, whether for light, heat, or power, it shall be in- 
 cluded herein, if not separately measured, or if included under 
 the same contract with that which is distributed by them to 
 consumers. 
 
 All revenue accruing to the corporation for distributing gas 
 of other companies through its pipes and selling the same, and 
 for all other services performed in connection therewith. 
 
 307— SALES OF RESIDUALS AND BYPRODUCTS.— P. A. 
 
 Credit to this account all revenues derived from the s;ile of 
 residuals and byproducts. 
 
 308— MISCELLANEOUS CAS REVENUE.— P. A. 
 
 Credit and charge to this account as follows: Credit all re- 
 ceipts from the sale of gas merchandise and from gas jobbing. 
 Charge the cost of gas merchandise sold, such cost including 
 transportation charges paid on such goods. 
 
 Also credit the profit or commission accruing on all jobbing 
 work performed as agent under agency contracts, whereunder 
 it undertakes to do jobbing work for another for a stipulated 
 profit or commission upon its actual expense for labor, ma- 
 terials and supplies. 
 
 NOTE. — This should not include receipts from the sale of superseded 
 equipment or of junk or other scrap or salvage. 
 
 Credit to this account all revenue derived from the letting 
 of gas engines, heating appliances, lamps and other gas ap- 
 paratus and appliances (except prepaid meters). When the 
 contract of letting names only a single consideration for both 
 the letting and the maintenance of the appliances so let, the 
 entire revenue shall be included in this account. 
 
40 
 
 Credit to this account all revenues derived from others than 
 municipal corporations for the supply of gas and from other 
 gas operations not includible'in any of the foregoing accounts. 
 
 NON-OPERATING REVENUES. 
 
 321— RENT FROM LEASE OF (IAS PLANT.— P. A. 
 
 Credit to this account all revenues accruing to the corpora- 
 tion from its interest in gas plant or equipment held by others 
 under some form of lease whereby it surrenders possession of 
 such property. 
 
 322— RENT FROM LEASE OF REAL ESTATE 
 OR BUILDINGS..-P. A. 
 
 Credit to this account all revenues accruing to the corpora- 
 lion from leased property other than gas plant and equipment. 
 
 Against this revenue should be charged all expense for the 
 upkeep of the property so rented. 
 
 323— INTEREST REVENUES.— P. A. 
 
 Credit to this account all interest accruing to the corpora- 
 tion upon such of its interest-bearing investments, current as- 
 sets and special deposits as are liabilities of solvent concerns 
 and individuals. 
 
 324— DIVIDENDS DECLARED.— P. A. 
 
 Credit to this account at their cash value, as of the date 
 when collectible, all dividends declared by solvent concerns 
 upon stocks held by the corporation among ils investments. 
 
 325— MISCELLANEOUS NON-OPERATING REVENUE.— 
 
 P. A. ' 
 
 Credit to this account all non-operating revenues accruing 
 
 to the corporation and not provided for in any of the foregoing 
 accounts. 
 
41 
 DEFINITIONS OF GAS EXPENSE ACCOUNTS. 
 
 In the following definitions of accounts the numbers pre 
 fixed to the titles are inserted solely for convenience of refer 
 ence and are no part of the titles or of the definitions. 
 
 GENERAL ACCOUNTS. 
 
 I. PRODUCTION EXPENSES. 
 
 II. TRANSMISSION AND DISTRIBUTION EXPENSES. 
 
 III. MUNICIPAL STREET LIGHTING EXPENSES. 
 
 IV. COMMERCIAL EXPENSES. 
 
 V. NEW BUSINESS. 
 
 VI. GENERAL AND MISCELLANEOUS EXPENSES. 
 
 I.— PRODUCTION EXPENSES. 
 
 401— SUPERINTENDENCE AND LABOR.— P. A. 
 
 Charge to this account all salaries and wages of men em- 
 ployed in making gas. 
 
 This account may be further classified, if desired, under the 
 following headings, which shall be the titles of sub-accounts 
 set up hereunder: 
 
 (a) Works Superintendence. 
 
 Charge to this account the cost of labor of the engineer in 
 charge of works and his assistants, also day and night foremen 
 and station clerks. 
 
 (T>) Boiler Rouse Labor. 
 
 Charge to this account the cost of labor employed in weigh- 
 ing and handling coal, coke, and breeze from place of storage 
 to boilers; labor employed in operating boilers and engines 
 (including such labor as that of shovellers, weighers, boiler 
 firemen and engineers, and oilers) ; and labor employed in 
 pumping oil tar from generators through separators to storage 
 tanks, and from storage tanks to boilers. Include also such 
 labor as that of pump house men. 
 
42 
 
 (c) Retort House Labor, 
 
 Charge to this account the cost of labor employed in firing 
 benches, charging and re-charging retorts, patching and scurf- 
 ing retorts, cleaning pipes and lids, quenching and handling 
 coke used under benches, and handling coal from place of stor- 
 age to retort house. This includes such labor as that of fore- 
 men, firemen, furnacemen, retort and boiler tenders, patchers, 
 pipemen, lid cleaners, coke quenchers, guymen, riggers, shovel- 
 lers and wheelers. 
 
 (d) Generator Bouse Labor. 
 
 Charge to this account the cost of labor employed in weigh- 
 ing and handling coal and coke from place of storage to charg- 
 ing floor, and in operating, firing, clinkering and cleaning gen- 
 erators. This includes such labor as that of shovellers, weigh- 
 ers, pumpers, generator firemen, and runners. 
 
 (e) Miscellaneous Labor At Works. 
 
 Charge to this account the cost of general labor in and about 
 the works not specifically engaged in the manufacture of gas, 
 such as that of watchmen, janitors, and messengers, laborers 
 employed in cleaning up yards, removing snow, and cleaning- 
 out refuse pile. 
 
 41)1'— BOILER FUEL.— P. A. 
 
 Charge to this account the cost (in storage pile) of fuel used 
 under boilers. This includes cost of fuel used, freight, de- 
 murrage charges, labor employed in discharging and trans- 
 ferring fuel from point of shipper's delivery to place of stor- 
 age, and cartage employed in discharging and transferring fuel 
 from point of delivery to place of storage. 
 
 403— FUEL UNDER RETORTS.— P. A. 
 
 Charge to lliis account the cost I in storage pile) of fuel used 
 under retorts. This includes cost of fuel, used, freight, de- 
 murrage charges, and labor and cartage employed in discharg- 
 
43 
 
 ing and transferring fuel from point of shipper's delivery to 
 storage pile. 
 
 NOTE. — If fuel is delivered from storage to retort house by other 
 than retort house labor, cost of such labor should be added to cost of 
 fuel. 
 
 404— COAL CARBONIZED.— P. A. 
 
 Charge to this account the cost (in storage pile) of gas coal 
 used in retorts. This includes invoice cost of coal used, freight, 
 demurrage charges, and lahor and cartage employed in dis- 
 charging and transferring coal from point of shipper's delivery 
 to storage pile. 
 
 405— GENERATOR FUEL.— P. A. 
 
 Charge to this account the cost (in storage pile) of fuel used 
 in generators. This includes invoice cost of fuel used, freight, 
 demurrage charges, and labor and cartage employed in dis- 
 charging and transferring fuel from point of shipper's delivery 
 to storage pile. 
 
 NOTE. — If generator fuel is delivered from storage to generator 
 house by other than generator house labor, cost of such labor should be 
 added to cost of generator fuel. 
 
 40G— COAL GAS ENRICHER.— P. A. 
 
 Charge to this account the cost (in storage) of enricher ma- 
 terials used in enriching coal gas. This includes cost of en- 
 richer used, freight, demurrage charges, and labor and cartage 
 employed in transferring enricher from point of shipper's de- 
 livery to storage. 
 
 407— OIL (WATER GAS.)— P. A. 
 
 Charge to this account the cost (in storage tanks) of gas 
 oil or naphtha used in making water gas. This includes invoice 
 cost of oil used, freight, demurrage charges, and labor and 
 cartage employed in getting oil from point of shipper's delivery 
 to storage tanks. 
 
44 
 
 408— WATER.— P. A. 
 
 Charge to this account the cost of water used for gas pro- 
 duction. 
 
 409— PURIFICATION LABOR.— P. A. 
 
 Charge to this account the cost of labor employed in chang- 
 ing purifier boxes, revivifying oxide, and removing spent oxide 
 to refuse pile. This includes such labor as that of foremen 
 and laborers. 
 
 110— PURIFICATION SUPPLIES.— P. A. 
 
 Charge to this account the cost of material used in gas puri- 
 fication. This includes the average cost of oxide actually used 
 (the invoice cost and freight, plus shavings, plus labor and 
 cartage necessary to store it, plus the cost of mixing it), and 
 the invoice cost of lime actually used. 
 
 411— MISCELLANEOUS WORKS EXPENSE. 
 
 Charge to this account the cost of sundry supplies and ex- 
 penses in connection with the works not includible in other ac- 
 counts. This includes lubricating oil, waste and packing, and 
 other small materials of like nature used in gas production; 
 also incidental items, such as telephone, ice, brooms, mops, 
 kerosene, soap, towels, and similar expenses. 
 
 412— REPAIRS OF WORKS AND STATION STRUCTURES. 
 
 Charge to this account the cost of all repairs of works and 
 station structures, including permanent piers and other foun- 
 dations. Such structures include retort houses, generator 
 houses, purifier houses, engine houses, boiler houses, meter 
 houses, coal sheds, coke sheds, tar houses and wells, oil tanks, 
 and other structures for storage of fuel to be consumed or car- 
 bonized in the production of gas and the operations auxiliary 
 I hereto; structures for residuals and byproducts; appurtenant 
 
45 
 
 walks, fences, drives, tramways, trestles, etc., and all fixtures 
 permanently attached to such structures and made a part 
 thereof; also all buildings', holding- houses, and other struc- 
 tures at outlying holder stations, except the holders and their 
 appurtenances. 
 
 NOTE. — Repairs of short-lived and especially provided foundations 
 and settings for furnaces and boilers, steam engines, gas engines, 
 pumps, generators, benches, condensers, washers, scrubbers, purifiers, 
 etc., shall not be included herein. Such foundations and settings and 
 the apparatus and machinery to which they pertain are not intended to 
 be included under the term fixtures as above used. Nor shall repairs 
 of gas holders be included in this account. 
 
 413— REPAIRS OF POWER PLANT.— P. A. 
 
 Charge to this account the cost of all labor and material for 
 repairs to the power plant. 
 
 This account may be farther classified, if desired, under the 
 following headings, which shall be the titles of sub-accounts 
 set up hereunder. 
 
 («) Repairs of Furnaces, Boilers, and Accessories. 
 
 Charge to this account the cost of repairing all furnaces, 
 boilers, and boiler apparatus and accessories devoted to the 
 production of steam for use in producing gas and in furnishing 
 motive power in gas works and stations. This includes boilers 
 and valves thereto attached, appurtenant furnaces and grates, 
 and flues leading to smokestacks and chimneys, and the 
 specially provided foundations and settings of such boilers and 
 appurtenances. It also includes mechanical stokers and other 
 like apparatus for regulating the supply of fuel, etc., feed and 
 hot water heaters and economizers, injectors, filters, feed 
 pumps, blower engines, coal conveyors, ash conveyors, water 
 pipes, steam traps, drains and separators; and pipes for con- 
 ducting steam from the boiler to the engine, to condensers, or 
 to the gas producers, exhaust pipes, etc. It does not include 
 steam pipes whose primary purpose is the heating of buildings. 
 
46 
 
 (b) Repairs of Steam Engines. 
 
 Charge to this account the cost of repairing all steam en- 
 gines devoted to use as prime movers in gas works. This in- 
 cludes the specially provided foundations and settings of such 
 engines. The engine, whether reciprocating or rotary (such as 
 steam turbines) shall be considered to include the throttle or 
 inlet valve and the governor; also condensers and air pumps, 
 but not the steam pipe leading from the boiler, nor the exhaust 
 pipe. 
 
 (c) Repairs of Gas Engines. 
 
 Charge to this account the cost of repairing all gas engines 
 devoted to use as prime movers in gas works and stations. 
 This includes the specially provided foundations and settings 
 of such engines. The engine includes the inlet valve, governor, 
 and ignition and starting apparatus, but not the pipe Jeading 
 from the gas holder, nor the exhaust pipe. 
 
 (d) Repairs of Miscellaneous Power Plant Equipment. 
 
 Charge to this account the cost of repairing all miscellaneous 
 power plant equipment at gas works which is not includible in 
 any of the foregoing accounts. This includes such mechanical 
 apparatus as belts, pulleys, hangers, countershafts, and other 
 apparatus intermediary between the prime mover and the ap- 
 paratus operated, cranes, hoists, etc., and machine tools and 
 such other tools at power plants as are proper to be capital- 
 ized, etc. 
 
 ' 414— REPAIRS OF GAS APPARATUS. 
 
 Charge to this account the cost of all labor and material for 
 repairs to the gas apparatus. 
 
 This account may be further classified, if desired, under the 
 following headings, which shall be the titles of sub-accounts 
 set up hereunder : 
 
47 
 
 (c) Repairs of Benches and Retorts. 
 
 Charge to this account the cost of all repairs of benches, in- 
 cluding the retorts and their settings, and auxiliary piping, in- 
 cluding ascension pipes, and foul and hydraulic mains. 
 
 (6) Repairs of Water Gas Sets and Accessories. 
 
 Charge to this account the cost of repairing all water gas 
 generators and accessories devoted to the production of gas, 
 the specially provided foundations and settings for such water 
 gas sets, and the flues leading therefrom to smokestacks and 
 chimneys. This account includes not only generators, carbu- 
 reters, superheaters, seals, and piping connected therewith, 
 but also blast apparatus, oil and steam supplying apparatus, 
 oil heaters, etc. It does not include pipes whose primary pur- 
 pose is the warming of buildings. 
 
 (c) Repairs of Purification Apparatus. 
 
 Charge to this account the cost of all repairs of the appa- 
 ratus for purifying gas, including condensers, washers, scrub- 
 bers, purifiers, tar extractors, etc., and their specially provided 
 foundations and settings. 
 
 id) Repairs of Holders. 
 
 Charge to this account the cost of all repairs of gas holders 
 and appurtenances at works and of those at district stations. 
 
 (e) Repairs of Miscellaneous Equipment. 
 
 Charge to this account the cost of repairing all accessory 
 equipment and apparatus used in the production and storage 
 of gas not specifically provided for in the foregoing accounts. 
 This account includes repairs of exhausters, station meters, 
 governors, etc.; apparatus for charging retorts; conveyors for 
 disposing of coke and other products and residuals; tar and 
 ammonia apparatus, pumps, pipes, tanks, etc. 
 
4S 
 
 415— REPAIRS OF WORKS TOOLS. 
 
 Charge to this account the cost of repairing such tools and 
 implements used in the production and storage of gas as have 
 been capitalized. 
 
 410— GAS STORAGE. 
 
 Charge to this account the cost of labor and material (except 
 repairs i employed in storing and regulating the how of gas to 
 distributing mains by holder pressure. This includes labor of 
 firemen, engineers, valve-men, and superintendents when en- 
 gaged on gas storage: and cost of coal, coke, water, and inci- 
 dentals. 
 
 417— PURCHASED GAS. 
 
 Charge to this account the cash purchase price of gas bought 
 from other companies for distribution through the system of 
 the accounting corporation; also the corporation's proportion 
 of the cost of production (including maintenance, but not in- 
 cluding any pure rent or return upon the value of property em- 
 ployed) of gas produced by another concern for the use of the 
 corporation under any joint arrangement for the sharing of 
 expense upon the basis of the relative amounts of benefit to the 
 several participants. 
 
 418— R ESIDUA L E X 1 ■ E X S E . 
 
 Charge to this account the labor and expense in handling 
 aminoniacal Liquor, Coke and Tar. This includes pumping, 
 barrels, bags, storage and other expenses incurred in the 
 preparation or delivery of residuals made for sale. 
 
 This account may be sub-divided, if desired, as follows: 
 
 418 a. Aminoniacal Liquor Expense. 
 
 1 is h. Coke Expense. 
 
 41 s c. Tar Expense. 
 
49 
 
 II.— TRANSMISSION AND DISTRIBUTION EXPENSES. 
 
 421— TRANSMISSION PUMPING.— P. A. 
 
 Charge to this account the cost of pumping gas through 
 mains to the distribution system, including inspection and 
 regulation of booster governors. 
 
 NOTE. — In gas operations, when gas is delivered to the supply sys- 
 tem outside the works at substantially works pressure, the pipe system, 
 including mains, feeders and services (and supply pipes to outlying 
 holders, if any), shall all be classed in the distribution system. When 
 the pressure is raised by means of boosters and the gas is delivered to 
 the pipes at higher than works pressure, and is later reduced in press- 
 ure and delivered to the distribution system proper, that portion of the 
 pipe system used for conducting gas at the raised pressure shall be 
 classed as the transmission system. 
 
 422— DISTRIBUTION SUPERINTENDENCE.— P. A, 
 
 Charge to this account the cost of all labor employed in 
 superintending the operation of the street department, fitting 
 and repair shops, including the salaries of superintendents, 
 foremen, clerks, timekeepers, messengers, watchmen, and jani- 
 tors employed in the distribution department. 
 
 423— DISTRIBUTION SUPPLIES AND EXPENSES.— P. A. 
 
 Charge to this account the cost of office maintenance and 
 incidental expenses of the street and shop departments, includ- 
 ing light, heat, telephone, water, ice, etc. 
 
 NOTE.— When the distribution office is combined with the works 
 office or commercial office charges like rent, light, etc., should be divided 
 between them in a fixed ratio, based upon the relative amounts of use. 
 
 424— GAS METER AND INSTALLATION WORK.— P. A. 
 
 Charge to this account the cost of labor employed and mate- 
 rial used in locking and unlocking meters, building inspection, 
 pumping drip, cleaning service or house pipe with pump; set- 
 ting, removing, re-setting and changing position of meters, and 
 temporary repairs of leaks in house piping. 
 
50 
 125— GRATUITOUS WORK.— P. A. 
 
 Charge to this account the cost of installing gas stoves and 
 other appliances on the premises of consumers, and of work 
 done for consumers in maintaining the efficiency of their serv- 
 ice, including complaint work and other work done in houses 
 beyond the end of the meter outlet connection. This includes 
 the cost of adjusting or changing location of house pipes, gas 
 burners, fixtures, stoves and appliances, and the cost of new 
 pillars, tips, burners, or devices not chargeable to repair ac- 
 counts ; it does not include such installation expense items as 
 are provided for in the preceding account. 
 
 Credit to this account the cost element of receipts for job- 
 bing work which the accounting corporation has performed as 
 agent, under agency contracts. 
 
 NOTE. — If the accounting corporation desires, this account can be 
 sub-divided as follows: 
 
 425 — Gratuitous Work. 
 
 425a — Complaint Expense. 
 
 This account should show the cost of attending to complaints of con- 
 sumers, so far as the same may involve work up to the end of meter 
 (or governor) outlet connection. 
 
 420— REPAIRS OF GAS MAINS.— P. A. 
 
 Charge to this account the cost of labor and material em- 
 ployed in repairing mains. This includes labor of foremen, in- 
 spectors, caulkers, tappers, pavers, drillers, skilled laborers, 
 general laborers, and similar workers on street department 
 payrolls, while engaged in repairing, altering, overhauling, 
 changing position of or removing street mains ; protecting ex- 
 posed or undermined mains, searching for and repairing leaks 
 in mains, and paving over any of the above work; also mate- 
 rial and cartage in connection with the above work. 
 
 NOTE. — This account must be so kept as to enable the corporation 
 to show separately in its annual report to the Public Service Commis- 
 sion the cost of repairing trunk lines and mains used for transmission 
 of gas, and the cost of repairing those used for distribution. 
 
 In gas operations, when gas is delivered to the supply system out- 
 side the works at substantially works pressure, the pipe system -in- 
 cluding mains, feeders and services (and supply pipes, to outlying 
 
51 
 
 holders, if any) shall all be classed in the distribution system. When 
 the pressure is raised by means of boosters and the gas is delivered to 
 the pipes at higher than works pressure, and is later reduced in pres- 
 sure and delivered to the distribution system proper, that portion of 
 the pipe system used for conducting gas at the raised pressure shall 
 be classed as the transmission system. 
 
 427— REPAIRS OF GAS SERVICES.— P. A. 
 
 Charge to this account the cost of labor and material em- 
 ployed in repairing services. This includes the same classes of 
 labor as shown in the account "Repairs of Gas Mains," while 
 engaged in repairing, altering, relaying, cutting off, increasing 
 the size of and changing the position of services ; searching for 
 and repairing leaks in services; and paving over any of the 
 above work ; also material and cartage in connection with the 
 work shown above. 
 
 428— REPAIRS OF GAS METERS.— P. A. 
 
 Charge to this account the cost of testing and repairing con- 
 sumers' meters. 
 
 429— REPAIRS OF DISTRIBUTION TOOLS.— P. A. 
 
 Charge to this account the cost of sharpening and repairing 
 tools and implements used in the street department and the 
 fitting and repair shops and charged to capital accounts. 
 
 NOTE. — If desired, depreciation, losses, etc., of tools and implements 
 can be distributed to the proper expense accounts. 
 
 430— REPAIRS OF GAS APPLIANCES.— P. A. 
 
 Charge to this account the cost of repairs of gas lamps, 
 stoves, engines, and other appliances owned by the corporation 
 and rented to consumers. 
 
52 
 
 III.— MUNICIPAL STREET LIGHTING EXPENSES. 
 
 441— STREET LAMP OPERATING.— P. A. 
 
 Charge to this account the cost of labor employed in clean- 
 ing- and lighting street lamps, and extinguishing street lights ; 
 in inspecting and supervising the street lighting district ; in re- 
 porting on re-lights and discontinues, and watching the hours 
 of lighting and extinguishing; and the incidental expenses of 
 street lamp operating. Also the cost of labor and material 
 consumed in fitting up new lamp posts, re-fitting stand-pipes, 
 cleaning services, cutting off services, re-caulking columns, re- 
 moving posts, re-setting posts, re-fitting columns, straightening 
 posts, and all other work of a similar character necessary to 
 maintain the street lighting system to the degree of efficiency 
 required by the city ; also re-paving over openings made neces- 
 sary by such work. 
 
 iy .—COMMERCIAL EXPENSES. 
 
 442— COMMERCIAL EXPENSE.— P. A. 
 
 Charge to this account labor and expenses of regular and 
 prepayment collectors; also the cost of operating the com- 
 mercial office; this includes labor, stationery, printing, tele- 
 phone and telegraph service and incidental expenses; also the 
 cost of labor of superintendents, chief clerks, stenographers, 
 bookkeepers, general clerks, etc., employed in the commercial 
 department. 
 
 This account can be sub-divided, if desired, into the follow- 
 ing sub-accounts : 
 
 442 a. Commercial Expense, Collection. 
 
 442 b. Commercial Expense, Office. 
 
 442 c. Commercial, Office Salaries. 
 
 443— NEW BUSINESS.— P. A. 
 
 Charge to this account the matters prescribed under the fol- 
 lowing headings, which can, if desired, be the titles of sub-ac- 
 counts set up hereunder. 
 
53 
 
 (a) Advertising. 
 
 This covers the salaries and personal expenses of advertising 
 manager and clerks; also the cost of commercial advertising 
 sundries, including booklets, dodgers, newspaper advertise- 
 ments and all related items. 
 
 (b) Appliance Demonstrations. 
 
 This covers the cost of labor and expenses incurred in 
 demonstrating the use of gas appliances for the purpose of 
 obtaining new business. 
 
 (c) Expense Soliciting. 
 
 This covers the expenses incurred in soliciting new business, 
 including wages, commissions and personal expenses of can- 
 vassers, car fares, etc., and office sundries in connection there- 
 with. 
 
 I d) Gas Appliances. 
 
 This covers the cost of labor and material expended in setting 
 and installing gas stoves and appliances. 
 
 (e) Gas Engine Expense. 
 
 This covers the cost of labor and material used in connect- 
 ing, installing and maintaining gas engines whether owned or 
 not. 
 
 (f) House Fitting Expense. 
 
 This covers the cost of labor and material installing Wels- 
 bach lamps, gas fixtures, house piping, etc. 
 
 V.— GENERAL AND MISCELLANEOUS EXPENSES. 
 
 451— SALARIES, GENERAL.— P. A. 
 
 Charge to this account the salaries and traveling and in- 
 cidental expenses of the chairman of the board, president, vice- 
 
54 
 
 president, treasurer, secretary, comptroller, general auditor, 
 general manager, assistant general manager, chief engineer, 
 general superintendent, purchasing agent, and all other officers 
 whose jurisdiction extends to the entire system and whose 
 services can not be satisfactorily allocated to the several de- 
 partments ; also charge to this account the salaries and travel- 
 ing and incidental expenses of general office auditors, book- 
 keepers, cashiers, paymasters, stenographers, clerks, employed 
 in counting cash, and all other clerks employed in the general 
 office. 
 
 NOTE. — Cost of labor of clerks in the commercial department shall 
 be charged to the account No. — , "Commercial Administration — Gas." 
 (See page — .) 
 
 452— EXPENSE, GENERAL OFFICE.— P. A. 
 
 Charge to this account the cost of office supplies, repairs of 
 office furniture, and renewals of such furniture as has not been 
 capitalized; wages of janitors, porters, and messengers; rent 
 of room in office buildings, repairs of such rented rooms, and 
 all other miscellaneous expenses of general offices. Office ex- 
 penses of department officers must be charged to the proper 
 departmental accounts. 
 
 NOTE. — Rents charged to this account will be required to be reported 
 separately. 
 
 453— INSURANCE.— P. A. 
 
 Charge to this account premiums paid to insurance com- 
 panies for fire, fidelity, boiler, casualty, burglar, and all other 
 insurance; also amounts set aside as an insurance reserve. 
 
 154— ACCIDENTS AND DAMAGES.— P. A. 
 
 Charge to this account all expenses on account of persons 
 killed or injured or damages to property. This includes casu- 
 alty insurance premiums, damage done by company's employes 
 to the property of others, legal expenses, medical expenses, set- 
 tlement of claims, salary and expenses of (Maim Agent, wages 
 
55 
 
 paid disabled employes while off duty, stoves and other appli- 
 ances given to consumers in exchange for those destroyed by 
 explosion or other accident. 
 
 455— RELIEF DEPARTMENT AND PENSIONS.— P. A. 
 
 Charge to this account all salaries and expenses incurred in 
 connection with conducting a relief department; also contribu- 
 tions made to such department; also all pensions paid to re- 
 tired employees, and expenses in connection therewith. 
 
 450— GENERAL LAW EXPENSES.— P. A. 
 
 Charge to this account all law expenses except those incurred 
 in the defense and settlement of damage claims. This includes 
 salaries and expenses of all counsel, solicitors, and attorneys, 
 their clerks and attendants, and expenses of their officers; cost 
 of law books, printing briefs, legal forms, testimony, reports, 
 etc., fees and retainers for services of attorneys not regular 
 employees ; court costs and payments of special, notarial, and 
 witness fees not provided for elsewhere, expenses connected 
 with taking depositions, and all law and court expenses not 
 provided for elsewhere. 
 
 457— STABLE EXPENSES.— P. A. 
 
 Charge to this account the cost of feed, keep and shoeing of 
 horses, wages of stablemen, hostlers, veterinary expenses, and 
 all other expenses of stabling horses ; also the cost of repair- 
 ing wagons and harness ; wages of chauffeurs, and repairs and 
 other expenses of motor vehicles. 
 
 NOTE. — This account can be distributed to the appropriate operating 
 accounts monthly, or at close of year, if desired. 
 
 458— STORE ROOM EXPENSES.— P. A. 
 
 Charge to this account all labor and expenses in connection 
 with store rooms, including cost of sending materials and sup- 
 
56 
 
 plies from general store room to branch store rooms, and the 
 collection of scrap material. 
 
 NOTE. — This account can be distributed to the appropriate operating 
 accounts monthly, or at close of year, if desired. 
 
 459— TAXES.— P. A. 
 
 Charge to this account all taxes paid; this includes taxes on 
 real estate, personal property, capital stock, gross earnings, 
 franchises, etc. 
 
 460— UNCOLLECTIBLE BILLS.— P. A. 
 
 When after a reasonably diligent effort to collect, any ac- 
 count stated for gas sold has proved impracticable of collec- 
 tion, it shall be charged to this account and credited to the ac- 
 count receivable in which theretofore charged. 
 
 461— INTEREST ON FUNDED DEBT.— P. A. 
 
 Charge to this account all interest accrued absolutely on the 
 outstanding funded debt of the corporation. This includes 
 mortgage bonds, income bonds (if interest on such be pay- 
 able), debentures and mortgages and ground rents. 
 
 462— INTEREST ON UNFUNDED DEBT.— P. A. 
 
 Charge to this account all interest paid or accrued on promis- 
 sory notes or other unfunded debt of the corporation. 
 
 463— INVENT< >RY A I ).) CST.M ENTS.— P. A. 
 
 Charge or credit to this account any shortages or overages 
 shown by the inventory of .Materials ami Supplies which can 
 not be distributed to the proper const ruction or operating ex- 
 pense account. 
 
464— MISCELLANEOUS NON-OPERATING 
 EXPENSE.— P. A. 
 
 Charge to this account: 
 
 (a) All amounts accrued against the corporation for rent 
 of plant and equipment which it holds under some form of 
 lease from another company or corporation and of which it has 
 the exclusive possession. 
 
 (6) Where any plant or equipment is maintained or oper- 
 ated by another corporation for the joint benefit of the account- 
 ing corporation and others under a joint arrangement for 
 sharing the expense (on the basis of the relative amounts of 
 benefit to the several participants), if such joint arrangement 
 provides for including in the charge again the accounting cor- 
 poration any pure rent, profit, or return upon such plant or 
 equipment over and above depreciation and othei* expense of 
 maintenance and operation, such pure rent, or profit, or return 
 upon property shall be charged to this account. 
 
 (c) All non-operating expense not provided for in any of the 
 foregoing accounts. 
 
 APPROPRIATIONS. 
 
 The balance resulting from closing the foregoing expense 
 accounts for any fiscal period into Revenue accounts for That 
 period gives the Net Corporate Income for that period. The 
 Net Corporate Income should be closed into the "Corporate 
 Surplus or Deficit" account. The group of accounts which 
 show for any fiscal period the changes in the "Corporate Sur- 
 plus or Deficit" account are designated the "Appropriation"' 
 accounts, for the reason that substantially all of them are sub- 
 ject only to the discretion of the corporation. At the end of 
 each fiscal period each of the "Appropriation" accounts shall be 
 closed info the year's "Corporate Surplus or Deficit" account. 
 
 501— EXTINGUISHMENT OF DISCOUNT ON 
 SECURITIES,— P. A. 
 
 Charge to this account at the close of each year the propor- 
 tion of the unextinguished discount on securities applicable to 
 the period. This proportion shall be such an amount as will 
 
58 
 
 completely wipe out the discount on the debt during the in- 
 terval between issue and maturity of the same. 
 
 The corporation may, if it so desire, earlier wipe out such 
 discount by charging all or any portion thereof to the year's 
 ••Corporate Surplus or Deficit." 
 
 502— DEPRECIATION OF PLANT.— P. A. 
 
 At the close of each year, after July 1, 1911, the amounts 
 charged to the various repair (or Maintenance) accounts dur- 
 ing the year shall be compared with the amount estimated to 
 be necessary to cover such wear and tear and obsolescence and 
 inadequacy as have accrued daring the year in the tangible 
 capital of the corporation, such portion of the life of the in- 
 tangihle fixed capital as has expired or been consumed during 
 the year, and the amount estimated to be necessary to provide 
 a reserve to cover the cost of property destroyed by extraordi- 
 nary casualties. If the estimated deterioration exceeds the 
 total repairs, the account "Depreciation of Plant" shall be 
 debited and the reserve account No. , ''Reserve for Ac- 
 crued Depreciation'' credited with an amount equal to Hie 
 excess; if the sum of the repairs exceeds the estimated dete- 
 rioration, the account "Reserve for Accrued Depreciation" 
 shall he debited and "Depreciation of Plant" credited with an 
 amount equal to the excess. The net amount charged (or 
 credited) to this account for any year, and concurrently cred- 
 ited (or charged) to the reserve account "lieserve for Accrued 
 Depreciation" must be sufficient to provide in that account in 
 respect of the several items of plant, by the time such items go 
 out of service, a reserve equal to the original cost thereof, less 
 salvage. 
 
 When any capital is retired from service, the amount (esti- 
 mated if not known) originally charged to a capital account in 
 respect thereof shall be credited to such capital account, and 
 the original cost of such capital, less salvage, if any. shall he 
 charged to the account "Reserve Cor Accrued Depreciation." 
 Where capital is substantially continuous and cannot he satis- 
 factorily individualized, it shall he kept in efficient operating 
 condition through repair, and the renewals and replacements 
 of parts thereof shall he considered repairs. In the case of 
 
59 
 
 buildings and other separate structures capable of being read- 
 ily individualized, charges to this account must be sufficient to 
 provide in the account "Reserve for Accrued Depreciation" a 
 reserve equal to the original cost thereof, less salvage, by the 
 time such structures go out of service. 
 
 NOTE.— Until otherwise ordered, the "amount estimated to he neces- 
 sary to cover such wear and tear and absolescence and inadequacy as 
 have accrued during" any year shall be based on a rule determined by 
 the accounting corporation. 
 
 Such rule may be derived from a consideration of the said, corpora- 
 tion's history and experience during the preceding five years. Depre- 
 ciation of intangible capital shall likewise be based on rule. What- 
 ever may be its basis, such rules and a sworn statement of the facts 
 and expert opinions and estimates upon which they are based shall be 
 filed with the Public Service Commission on or before January 1, 1912. 
 Each amendment of any such rule and a sworn statement of the facts 
 and expert opinions and estimates upon which such amendment is 
 based shall be filed with the Public Service Commission before it is 
 used by the accounting corporation, and shall show the date when it is 
 to be effective. Such rules and statements shall be filed upon sheets 
 8% by 11 inches in size, and shall be entitled "Rule of the (here naming 
 the accounting corporation) concerning 'Reserve for Accrued Depre- 
 ciation.' " 
 
 503— SINKING FUNDS.— P. A. 
 
 Charge to this account and credit -Sinking Fund Reserves" 
 the amount of all accruals required to be made to Sinking- 
 funds in accordance with the provisions of mortgages or other 
 contracts requiring the establishment of Sinking funds. 
 
 504— OPTIONAL RESERVES.— P. A. 
 
 When any special reserve is created by the corporation, 
 charge the amount set aside to this account and credit the 
 special reserve, giving the account such title as shall clearly 
 designate the purpose for which the reserve is created. 
 
 505— DIVIDENDS DECLARED.— P. A. 
 
 Immediately upon the declaration of a dividend this ac- 
 count should be charged the amount of such dividend and 
 credit made to the account "Dividends Payable." 
 
GO 
 506— M I SC E LIjAS E< )US. 
 
 BUd Debts. 
 
 When any debt theretofore written off is collected, the 
 amount of the collection, less expense involved in such col- 
 lection, shall he credited to the year's "Corporate Surplus or 
 Deficit" account. Charge to the year's "Corporate Surplus or 
 Deficit" account any debts written off from the accounts of the 
 corporation which are placed in the "Bad Debt" class. 
 
 NOTE. — Such "uncollectible bills" as have been provided for in the 
 heretofore denned "Uncollectible Bills" accounts must not be included 
 in this account. 
 
 Expenses Elsewhere Unprovided For. 
 
 Charge to the year's "Corporate Surplus or Deficit" account 
 all expenses not chargeable as a part of operating expenses or 
 of non-operating expenses, such as tines levied on the corpora- 
 tion for violation of law, for misfeasance, for non-feasance, etc., 
 fines levied on directors, officers and other employes and as- 
 sumed by the corporation, donations to funds, to churches, and 
 other associations, and other like expenses and outgoes. 
 
 Other Additions to Surplus. 
 
 Credit to the "Corporate Surplus or Deficit" account all ad- 
 ditions to Surplus because of erroneous accounting in prior 
 fiscal periods, and all other additions to Surplus not else- 
 where provided for. 
 
 Oilier Deductions from Surplus. 
 
 Charge to the "Corporate Surplus or Deficit'' account all de- 
 ductions from Surplus because of erroneous accounting in 
 prior fiscal years, and all other deductions from Surplus not 
 elsewhere provided for. 
 
 NOTE. — A complete analysis of the "Miscellaneous Appropriations" 
 will be required in the annual reports of corporations to the Public. 
 Service Commission.