H E 
 
 f\ka 
 
 DOCUMENTS 
 
 UC-NRLF 
 
PUBLIC SERVICE COMMISSION 
 
 FOR THE 
 
 FIRST DISTRICT 
 
 RULES ADOPTED 
 
 FOR 
 
 Chief Engineer's Determination of Costs 
 October 17, 1913 
 
 E 142-500-N. '13 (P) 
 
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Rules for the Chief Engineer's Determinations of Costs 
 
 under Contract Xo. 3 and Contract No. 4 and 
 
 the Related Certificates. 
 
 (I) The determinations of the Engineer are to be compiled 
 under the supervision of the Deputy Engineer of Subway Con- 
 struction, by the Estimates Division, from Statements of .Costs 
 covering the various items making up such costs. 
 
 The Costs referred to are the Cost of Construction and Cost of 
 Equipment classified under the several groups mentioned in the 
 contracts and the related certificates ; as for example : 
 Cost of Construction of the Railroad. 
 Cost of Equipment of the Railroad. 
 Reconstruction of existing railroads for initial operation: 
 
 Cost of Construction. 
 
 Cost of Equipment. 
 Additional Track Certificates : 
 
 Actual cost of plant and structure. 
 
 Actual cost of Equipment. 
 Cost of construction of additions : 
 
 Cost of additional equipment. 
 
 Etc., etc., etc. 
 Under each of the above groups the charges shall be further 
 classified according to the items mentioned in the definitions of 
 Cost of Construction and Cost of Equipment ; as for example : 
 Labor and materials. 
 Real estate. 
 
 Debt discount and expense. 
 Etc., etc., etc. 
 
 (II) Such statements of Costs are to be prepared and certified 
 to by the following bureaus and divisions of the Public Service 
 Commission : 
 
 (A) Equipment Inspection Bureau. 
 
 This bureau will certify to all Equipment charges with respect 
 to (1) Labor and materials, (4) or (5) Lessee's superintendence, 
 engineering, etc. (allocated and unallocated), and Interest, Taxes, 
 etc., susceptible of allocation to and chargeable to any specific 
 
 M259774 
 
Equipment item in accordance with the Uniform System of Ac- 
 counts. 
 
 The bureau will assign and check Specific Authorizations to 
 the Company covering any Equipment work, as hereinafter de- 
 scribed. 
 
 (B) Estimates Division. 
 
 This division will certify to construction charges of the Rail- 
 road (not otherwise specifically provided for) with respect to (1) 
 Labor and materials, (4a) City's superintendence, engineering, etc. 
 (Engineering Department salaries, and disbursements), (5) 
 Lessee's superintendence, engineering, etc., in connection with the 
 above Eailroad construction charges (allocated and unallocated), 
 and Interest, Taxes, etc., susceptible of allocation to and chargeable 
 to any specific Construction item in accordance with the Uniform 
 System of Accounts. 
 
 This division will assign and check Specific Authorizations to 
 the Company covering the charges designated (5) above, as here- 
 inafter described. 
 
 (C) Statistical Bureau. 
 
 This bureau will certify to all Construction and Equipment 
 charges with respect to (3) Debt discount and expense, (4), (5) 
 or (6) Taxes, and (4), (6) or (7) Interest, which are not suscept- 
 ible of allocation to and chargeable to a specific item in accordance 
 with the Uniform System of Accounts. 
 
 This bureau will assign and check Specific Authorizations to 
 the Company covering all the above charges, as hereinafter de- 
 scribed. 
 
 (D) Real Estate Bureau. 
 
 This bureau will certify to all Construction and Equipment 
 charges with respect to (2) Real Estate. 
 
 This bureau will assign and check Specific Authorizations to 
 the Company covering all such real estate charges, as hereinafter 
 described. 
 
 (E) Third Division. 
 
 This division will certify to all construction charges in con- 
 nection with the additional track and extension certificates of the 
 Interborough Rapid Transit Company, with respect to (1) Labor 
 and materials, (5) Lessee's superintendence, engineering, etc. (allo- 
 cated and unallocated), and Interest, Taxes, etc., susceptible of allo- 
 
 2 
 
cation to and chargeable to any specific item of such Construction 
 charges in accordance with the Uniform System of Accounts. 
 
 This division will assign and check Specific Authorizations to 
 the Company covering all the above' charges, as hereinafter de- 
 scribed. 
 
 (F) Sixth Division. 
 
 This division will certify to all construction charges in con- 
 nection with the additional track and extension certificates of the 
 New York Municipal Railway Corporation, with respect to (1) 
 Labor and materials, (5) Lessee's superintendence, engineering, 
 etc. (allocated and unallocated), and Interest, Taxes, etc., suscept- 
 ible of allocation to and chargeable to any such specific construc- 
 tion item in accordance with the Uniform System of Accounts. 
 
 This division will assign and check Specific Authorizations to 
 the Company covering all of the above charges, as hereinafter de- 
 scribed. 
 
 As the exigencies of the work may require there may be other 
 divisions or bureaus to which responsible charge will be assigned, 
 in which case such divisions or bureaus will assign and check the 
 Specific Authorizations to the Company covering such work coming 
 under their supervision. 
 
 (S) Secretary of the Commission. 
 
 The Secretary will certify to all construction charges with re- 
 spect to (4b) the Commission's salaries, disburserrients, expenses, 
 etc. The Secretary will not have any direct supervision over any 
 Company expenditures. He therefore will not be required to assign 
 Specific Authorizations. 
 
 (Ill) The Company shall make an application to the Chief 
 Engineer of the Commission for a General Authorization to proceed 
 with any complete project, and a General Authorization to cover 
 such work ; such as, for example, the Broadway- Myrtle Avenue con- 
 nection under the New York Municipal Eailway Corporation con- 
 tract. 
 
 The Company shall also make an application for Specific 
 Authorization number to cover the details of the work under Gen- 
 eral Authorization; that is, whenever any work is contemplated 
 which will involve payments, credits, compensations or concessions 
 of whatsoever character having in any way to do with the Cost of 
 Construction or the Cost of Equipment, whether the making of 
 surveys, preparation of plans, specifications, etc., or actual construe- 
 
tion or equipment of physical property, the Company shall submit 
 an application to the head of the bureau or division of the Com- 
 mission in charge of the supervision of the class of work involved, 
 in accordance with the foregoing subdivisions of responsibility, for* 
 a Specific Authorization number against which to charge the cost 
 of such work. An application shall also be submitted for a Specific 
 Authorization number by which to identify Company payments or 
 credits necessary on account of Interest, Taxes, etc., which are not 
 susceptible of allocation to any specific work undertaken. All of 
 these applications shall be submitted in triplicate on the approved 
 forms. 
 
 It is proposed that costs shall be determined so as to conform to 
 the requirements of Contracts 3 and 4 and the certificates, and also 
 to conform to the requirements of the Uniform System of Accounts. 
 Therefore to the end that charges may be classified as required by 
 the Uniform System of Accounts, no Specific Authorization number 
 shall include more than one account. 
 
 Under each such Specific Authorization, however, payments, 
 credits, compensations or concessions of whatsoever character hav- 
 ing in any way to do with the Cost of Construction or the Cost of 
 Equipment must be sufficiently described and subdivided so as to 
 permit readily the classification according to Labor and materials, 
 Eeal Estate, etc., etc., or according to the items mentioned in the 
 definitions of the Cost of Construction and the Cost of Equipment 
 in the contracts and related certificates. Article XXV of the Con- 
 tracts provides that the Commission may from time to time adopt 
 regulations as to the forms of vouchers and payrolls which the 
 Lessee shall strictly comply with, to the end that cost data can at 
 all times be promptly and accurately determined and the property 
 identified. These rules and schedules indicate the forms of such 
 vouchers, etc., in compliance with such Article. No such payment, 
 credit, compensation, etc., will be determined to be a part of the 
 Cost of Construction or Cost of Equipment unless sufficiently de- 
 scribed and subdivided as prescribed above in accordance with such 
 rules and schedules. 
 
 Under each General Authorization there shall be as many Spe- 
 cific Authorizations as may be necessary to classify the work ac- 
 cording to the Uniform System of Accounts, and in addition each 
 account may be subdivided into such separate Specific Authoriza- 
 tions as the conditions and character of the work may require. The 
 
cost under such Specific Authorization in turn will be subdivided 
 as hereinbefore described, so as to cover the cost items in accord- 
 ance with the definitions of the Cost of Construction and the Cost 
 of Equipment under the Contracts and certificates. Thus, each 
 Specific Authorization will form the basis of the determinations 
 and certifications in detail by the jpureaus and divisions to which 
 the responsibility therefor is assigned. Consequently, the En- 
 gineer's determinations will be compiled from the Specific Authori- 
 zations ; that is to say, the Specific Authorizations become the foun- 
 dation for the whole system of determination. 
 
 The segregation of all the like Specific Authorizations under 
 the Uniform System of Accounts classification will produce a de- 
 termination in accordance with the Uniform System of Accounts. 
 
 Likewise, the segregation of all the like items of the Specific 
 Authorizations, subdivided in accordance with the definitions under 
 the contracts and certificates, will produce the Engineer's deter- 
 mination in accordance with the contracts and certificates. 
 
 In order to facilitate the checking of charges by the proper 
 bureau or division, at least once a month the Company shall submit 
 a detailed statement of the charges or credits incurred under each of 
 the provisions of the contract and the certificates for each classifica- 
 tion of such charges. 
 
 (IV) Applications for General Authorizations shall be ad- 
 dressed to the Chief Engineer of the Commission and sent direct to 
 him. 
 
 Applications for Specific Authorizations shall be addressed to 
 the Chief Engineer, but must be sent to the head of the bureau or 
 division who is to assign and check such Specific Authorization. 
 Such bureau or division head after assigning a number to the Spe- 
 cific Authorization and checking it, must forward the same to the 
 Chief Engineer for his signature and return to the Company. 
 
 Specific Authorizations will be numbered in series by each bu- 
 reau or division with the identifying letter of such bureau or divi- 
 sion preceding the serial number; thus, A201, A210, etc., for the 
 Bureau of Equipment Inspection, C300, etc., for Statistical Bu- 
 reau, etc., etc. 
 
 The Statements of Costs classified and distributed by groups 
 and subdivisions in accordance with the contracts and certificates, 
 
Table I for the Interborough Rapid Transit Company, 
 Table II for the New York Municipal Railway Corpo- 
 ration, 
 are attached hereto. For the sake of brevity and convenience, the 
 groups and subdivisions are merely indicated in these tables. It is 
 understood that the exact language of the Contracts and Certifi- 
 cates indicates the details of the several classifications. 
 
 If in order to conform with the requirements of its organi- 
 zation, the Company desires to use another designation such as "Job 
 Number," "Work Order Number" or "Authorization Number" for 
 the work contemplated, it may do so and assign such work order 
 numbers or job numbers as may from time to time be necessary. 
 In no case, however, shall work under more than one "specific 
 authorization" issued by the Commission be included under one 
 Company job or work order. Furthermore, reference shall be made 
 under such Company designation to the Specific Authorization 
 number of the Commission and on the application to the Commis- 
 sion for such Specific Authorization, reference shall be made to the 
 Company designation. 
 
 Adopted by Eesolution of the Public Service Commission for 
 the First District, October 17, 1913. 
 
TABLE I. 
 
 GROUP AND SUBDIVISION DISTRIBUTION OF COSTS — INTERBOROUGH RAPID 
 TRANSIT COMPANY. 
 
 I. For the Interborough Rapid Transit Company — Contract 3 — Distri- 
 bution of Costs by Groups and Subdivisions will be 
 
 For the Railroad and the physical connections with the 
 Existing Railroads for Initial Operation : 
 
 (IA) Cost of Construction. 
 (Article 11-17) 
 
 1. Labor and Materials B 
 
 2. Real Estate D 
 
 3. Debt Discount and Expense C 
 
 4. City's Superintendence, Engineering, Etc. 
 
 (a) Engineering Department, 
 
 Salaries and Disbursements B 
 
 (b) Commission's Salaries, Disbursements 
 and Expenses, Etc S 
 
 5. Lessees' Superintendence B 
 
 6. Taxes C 
 
 7. Interest C 
 
 (IB) Cost of Equipment. 
 (Article 11-18) 
 
 1. Labor and Material A 
 
 2. Real Estate D 
 
 3. Debt Discount and Expense C 
 
 4. Superintendence, Engineering, Etc. (Lessees). A 
 
 5. Taxes C 
 
 6. Interest C 
 
 II. For tbe Existing Railroads 
 
 (ICc) Cost of Construction: 
 
 1. Labor and Materials E 
 
 2. Real Estate D 
 
 3. Debt Discount and Expense C 
 
 4. City's Superintendence, Engineering, Etc. 
 
 (a) Engineering Department, 
 
 Salaries and Disbursements B 
 
 (b) Commission's Salaries, Disbursements 
 and Expenses, Etc S 
 
 5. Lessees' Superintendence E 
 
 6. Taxes C 
 
 7. Interest C 
 
(ICq) Cost of Equipment: 
 
 1. Labor and Material A 
 
 2. Real Estate D 
 
 3. Debt Discount and Expense C 
 
 4. Superintendence, Engineering, Etc. (Lessees). A 
 
 5. Taxes C 
 
 6. Interest C 
 
 III. For the Interborough Rapid Transit Company — Certificates — the 
 Distribution of interests by groups and subdivisions will be — 
 
 For the 2nd, 3rd and 9th Ave. Additional Tracks— Certificate 
 
 (Article X) 
 
 (IDc) The Actual Cost of Plant and Structure: 
 
 1. Labor and Materials E 
 
 2. Real Estate D 
 
 3. Debt Discount and Expense C 
 
 4. Taxes and Interest C 
 
 5. Superintendence, Engineering, etc. 
 
 (Manhattan Company) E 
 
 (IDq) Actual Cost of Equipment: 
 
 1. Labor and Material A 
 
 2. Real Estate .- D 
 
 3. Debt Discount and Expense C 
 
 4. Taxes and Interest C 
 
 5. Superintendence, Engineering, etc. 
 
 (Manhattan Company) A 
 
 For the Webster Avenue Line, 8th Ave. and 162d St. Connection 
 
 Queensboro Bridge Line and West Farms Subway Connection — 
 
 Certificate — 
 
 (Article XI) 
 
 (IEc) Actual Cost of Plant and Structure: 
 
 1. Labor and Materials E 
 
 2. Real Estate D 
 
 3. Debt Discount and Expense C 
 
 4. Taxes and Interest C 
 
 5. Superintendence, Engineering, etc. 
 
 (Manhattan Company) E 
 
 (IEq) Actual Cost of Equipment: 
 
 1. Labor and Material A 
 
 2. Real Estate D 
 
 3. Debt Discount and Expense C 
 
 4- Taxes and Interest C 
 
 5. Superintendence, Engineering, etc. 
 
 (Manhattan Company) A 
 
 8 
 
The Engineer is not required under the certificates to make deter- 
 minations in accordance with the foregoing groups and subdivisions in 
 this Article III but in Article IX of the Interborough 3rd Track Certifi- 
 cate and in Article X of the Interborough Extension and Connection Cer- 
 tificate it is provided that the Commission shall have full supervision 
 over all Costs under the Certificates, therefore it is proposed to pre- 
 scribe the same regulations for the control of such Costs as are required 
 where determinations are provided for under the contracts. 
 
 IV. In order to provide for a convenient, uniform and simple means of 
 expansion, letters shall be used after the primary group designations 
 as follows : 
 
 A to denote Additions. 
 X " " Extensions. 
 R " " Replacements. 
 
 By means of these three letters in connection with the primary 
 group designations any classification can be provided, as, for ex- 
 ample : 
 
 For Additions: 
 
 IAA — The Railroad Cost of Construction 
 
 IBA Cost of Equipment 
 
 ICcA — Existing Railroads Cost of Construction 
 
 ICqA Cost of Equipment 
 
 In the case of the prefixes to the above items in I, II, III, "I" stands 
 for "Interborough" and the second letter identifies the Group. The 
 small numbers under each group correspond to the subdivision numbers 
 in Sections 14 and 15 of Article II of the Contract wherein the particu- 
 lar item is defined, for example, 1A2 means the Cost of Real Estate 
 forming a part of the Cost of Construction of the Railroad under the 
 Interborough Contract, or Contract 3. 
 
 V. For the Interborough Rapid Transit Company the Distribution by 
 Lines will be : 
 
 Seventh Avenue — Lexington. 
 1. (a) Seventh Avenue Branch. 
 
 1. (b) Lexington Avenue Branch. 
 
 2. Eastern Parkway. 
 
 3. Steinway Tunnel. 
 
 4. White Plains Road. 
 
 5. Park Ave.-Lex. Ave. Connection. 
 
 6. Seventh Ave.-Broadway Connection. 
 
 7. Contract No. 1. 
 
 8. Contract No. 2. 
 
 9. Second Ave. additional track. 
 
 10. Third Ave. additional track. 
 
 11. Ninth Ave. additional track. 
 
 12. Webster Avenue. 
 
 13. Eighth Avenue and 162d St. Connection. 
 
 14. Queensboro Bridge. 
 
 15. West Farms Subway Connection. 
 
VI. Cost Groups Apply to Lines 
 
 IA 1 
 
 V la, lb, 2, 3, 4, 5, 6. 
 
 IB ) 
 
 ICc \ 
 
 7 ' 8 ' 
 
 ICq ) 
 
 IDc ) 
 
 [ 9, 10, 11. 
 
 IDq ) 
 IEc i 
 
 C 12, 13, 14, 15. 
 
 IEq ) 
 
 TABLE II. 
 
 GROUP AND SUBDIVISION DISTRIBUTION OF COSTS — NEW YORK MUNICIPAL 
 RAILWAY CORPORATION. 
 
 I. For the New York Municipal Railway Corporation — Contract 4 — Dis- 
 tribution of Costs by Groups and Subdivisions will be : 
 
 For the Railroad for Initial Operation : 
 *(MA) Cost of Construction. 
 (Article 11-14) 
 
 1. Labor and Materials B 
 
 2. Real Estate D 
 
 3. Debt Discount and Expense C 
 
 4. City's Superintendence, Engineering, Etc. 
 
 (a) Engineering Department, 
 
 Salaries and Disbursements B 
 
 (b) Commission's Salaries, Disbursements 
 and Expenses, Etc S 
 
 5. Lessees' Superintendence B 
 
 6. Taxes C 
 
 7. Interest C 
 
 (MB) Cost of Equipment. 
 (Article 11-15) 
 
 1. Labor and Materials A 
 
 2. Real Estate D 
 
 3. Debt Discount and Expense C 
 
 4. Superintendence, Engineering, Etc. 
 
 (Lessee) A 
 
 ,5. Taxes C 
 
 6. Interest C 
 
 *Preflx "M" indicates New York Municipal Railway Co., and following 
 lettering the group class. 
 
 10 
 
II. For the Reconstruction of the Existing Railways for Initial Oper- 
 ation. \ 
 
 (MCc) Cost of Construction: 
 (Article XIII) 
 
 1. Labor and Materials F 
 
 2. Real Estate D 
 
 3. Debt Discount and Expense C 
 
 4. City's Superintendence, Engineering, Etc. 
 
 (a) Engineering Department, 
 
 Salaries and Disbursements B 
 
 (b) Commission's Salaries, Disbursements 
 and Expenses, Etc S 
 
 5. Lessees' Superintendence F 
 
 6. Taxes C 
 
 7. Interest C 
 
 (MCq) Cost of Equipment: 
 (Article XIII) 
 
 1. Labor and Materials V 
 
 2. Real Estate D 
 
 3. Debt Discount and Expense C 
 
 4. Superintendence, Engineering, Etc. 
 
 (Lessees) A 
 
 5. Taxes C 
 
 6. Interest C 
 
 III. For the Broadway, Fulton Street and Myrtle Ave. Additional Tracks 
 — Certificates. 
 
 (MDc) Actual Cost of Plant and Structure: 
 (Article IX) 
 
 1. Labor and Materials F 
 
 2. Real Estate D 
 
 3. Debt Discount and Expense C 
 
 4. Taxes C 
 
 5. Superintendence, Engineering, Etc. 
 
 ( Lessees ) F 
 
 6. Interest O 
 
 (MDq) Actual Cost of Equipment: 
 (Article IX) 
 
 1. Labor and Materials A 
 
 2. Real Estate D 
 
 3. Debt Discount and Expense C 
 
 4. Taxes C 
 
 5. Superintendence, Engineering, Etc. 
 
 (Lessees) A 
 
 6. Interest C 
 
 11 
 
For the Jamaica and Liberty Avenue Extensions — Certificate. 
 (MEc) Actual Cost of Plant and Structure: 
 (Article IX) 
 
 1. Labor and Materials . . . ^ F 
 
 2. Real Estate D 
 
 3. Debt Discount and Expense C 
 
 4. Taxes C 
 
 5. Superintendence, Engineering, Etc. 
 
 (Lessees) F 
 
 6. Interest C 
 
 (MEq) Actual Cost of Equipment: 
 (Article IX) 
 
 1. Labor and Materials A 
 
 2. Real Estate D 
 
 3. Debt Discount and Expense C 
 
 4. Taxes C 
 
 5. Superintendence, Engineering, Etc. 
 
 (Lessees) A 
 
 6. Interest C 
 
 IV. In order to provide for a convenient, uniform and simple means of 
 expansion, letters shall be used after the primary group designa- 
 tions as follows : 
 
 A to denote Additions. 
 X " " Extensions. 
 R " " Replacements. 
 
 By means of these three letters in connection with the primary 
 group designations and classifications can be provided, as, for ex- 
 ample : 
 
 For Additions: 
 
 MAA — The Railroad Cost of Construction 
 
 MBA Cost of Equipment 
 
 MCcA— Existing Railroads Cost of Construction 
 
 MCqA Cost of Equipment 
 
 Etc., etc. 
 
 DISTRIBUTION BY LINES AND LOCALITIES. 
 
 V. City Owned Lines (Groups A and B) 
 
 1. Broadway-Fourth Avenue. 
 
 2. Culver. 
 
 3. Fourteenth St.-Eastern. 
 
 12 
 
Reconstruction Existing Railroads (Group C) 
 
 4. Brighton Beach, Church to Malbone. 
 
 5. Brighton Beach, Neptune to Culver. 
 
 6. Myrtle Avenue-Broadway Connection. 
 
 7. Myrtle Avenue-Fresh Bond Connection. 
 
 8. Sea Beach. 
 
 9. Coney Island Terminal. 
 
 10. Yards, Shops and Terminals. 
 
 11. Equipment. 
 
 12. Miscellaneous. 
 
 13. Fulton St. (other than Group D) 
 
 14. Broadway (other than Group D) 
 
 15. Myrtle Ave. (other than Group D) 
 
 16. Brighton Beach (General). 
 
 17. Lexington Avenue. 
 
 18. Fifth Avenue. 
 
 19. Canarsie. 
 
 Additional Tracks Elevated (Group D) 
 
 20. Fulton Street. 
 
 21. Broadway. 
 
 22. Myrtle Avenue. 
 
 23. East New York. 
 
 Elevated Extension (Group E) 
 
 24. Liberty Avenue. 
 
 25. Jamaica Avenue. 
 
 VI. Cost Groups Apply to Lines 
 
 MA ) 
 
 V 1, 2 and 3. 
 
 MB ) 
 
 MCc ) 
 
 I 4 to 19 incl. 
 
 MCq J 
 
 MDc ) 
 
 C 20 to 23 incl. 
 
 MDq ) 
 
 MEc ) 
 
 I 24 and 25. 
 
 MEq ) 
 
 13 
 
VC 35284