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 NIFORM CLASSIFICATION 
 OF ACCOUNTS 
 
 FOR CLASS B 
 
 CARRIERS BY WATER 
 
 22792 
 
 PRESCRIBED BY THE 
 
 RAILROAD COMMISSION 
 
 OF THE 
 
 STATE OF CALIFORNIA 
 
 EFFECTIVE JANUARY 1, 1923 
 
 CALIFORNIA STATK PBINTINil ni i 
 SACBAJkLENTO. 1922 
 
 / iv 
 
 |.l.- A> 
 
 W/;
 
 r^^r[> \c-5 "
 
 Uniform Classification of Accounts 
 
 FOR CLASS B 
 
 CARRIERS BY WATER 
 
 PRESCRIBED UY THE 
 
 RAILROAD COMMISSION 
 
 OF THE 
 
 STATE OF CALIFORNIA 
 
 EFFECTIVE JANUARY 1,^1923 
 
 CALIFORNIA STATE PRINTING OFFICE 
 SACRAMENTO, 1922 
 
 22792 
 
 741119
 
 RAILROAD COMMISSION OF THE STATE OF CALIFORNIA 
 
 Haeley W. Brundige, President Commissioner 
 
 Ibving Maktin Commissioner 
 
 Chester H. Rowell Cx)mmissioner 
 
 H. Stanley Benedict Commissioner
 
 rzC\ 
 
 cw 
 
 J UNIFORM CLASSIFICATION OF ACCOUNTS FOR 
 CLASS B CARRIERS BY WATER. 
 
 Tlio Commission by Decision No. lllMiO. dated Xoveiiiher 'l'-\. V-Vl'l. in 
 Case No. 1760, ordered ;nid directed thai all carriers \)\ water whose 
 annual operating revenues art' ii^aOO.OOO, or less, and who are subject to 
 the jurisdiction of the Railroad Connnission and not to the jurisdiction 
 ^ of the Interstate Connnerce Commission, nuist, on and after Jannai-y 1, 
 \ 1923, keep their accounts and records in accorthuice witli the unifoi-m 
 \^ classification of accounts contained herein. A copy of the Commis- 
 sion's decision is attached hereto as Appendix "A." 
 
 In prescribing- the system of accounts, the Commission does not biiul 
 
 ^ itself to approve anv item set out in anv account, either as to amount 
 
 r< or character, for rate-fixing purposes or when authorizing the issue of 
 
 securities. The prescribed system of accounts is designed to set out 
 
 the facts in connection wdth the income, expenditures, etc., and there- 
 
 ^ from the Commission will determine, when engaged in fixing rates or 
 
 O authorizing the issue of securities, just what consi(h'ration shall be given 
 
 ^ to the various items in the several accounts. 
 
 Very truly yours, 
 
 RAILROAD C0I\OnSSI()X OF THE 
 
 STATE OF CALIFORxNIA, 
 
 By H. G. Mathewson, 
 
 Secretary. 
 Dated : December -i. 1922. 
 Flood Building, 
 
 San Francisco^ California.
 
 GENERAL DEFINITIONS, INSTRUCTIONS 
 AND INFORMATION. 
 
 1. Definition of "Carriers by Water." 
 
 The term ''Carriers bif Wdtrr," as used in this chissificatioii, nicaiis 
 every corporation, company, assocmtion, joint stock association, firm, 
 copartnership or individual; also every licensee, trustee or receiver 
 appointed by any court whatsoever; owning, controlling; or managing 
 any vessels, tugboats, lighters, barges or other floating eciuipmeiit used in 
 the transportation of persons or property as a common I'an-iei- foi- com- 
 pensation, and subject to the jurisdiction of the Railroad ('oiniiiissioii. 
 
 For the purpose of this system of accounts i;irrici-s by watci- ai-e 
 divided into two classes : 
 
 Class A: Includes all carriers having annual operating revenues 
 of more than $500,000 and subject to the jurisdiction 
 of the Railroad Commission ; also all carriers subject to 
 the jurisdiction of the Interstate Commerce Commis- 
 sion. 
 
 Class B : Includes all carriers whose annual operating revenues 
 are $500,000 or less, and subject to the jurisdiction of 
 the Railroad Commission. 
 
 The system of accounts contained herein applies to Class "B" car- 
 riers. Class "A" carriers must keep their records and accounts in 
 accordance with the system of accounts prescribed by the Interstate 
 Commerce Commission and adopted l)y this Commission. 
 
 2. Manner in which records must be kept. 
 
 The records of carriers by water shall be kept with sufficient particu- 
 larity to show fully the facts pertaining to all entries made in the 
 accounts provided herein. Where the full information is not recorded 
 on the general books, the entries therein shall be supported by other 
 records in which the full detail shall be shown. 
 
 The general book entries shall contain sufficient reference to the daily 
 records to permit ready identification and the daily records shall be filed 
 in such manner as to be readily accessible for examination by repre- 
 sentatives of the Railroad Commission. 
 
 3. Classification of accounts. 
 
 The system prescribed herein for Class B carriei's contains the general 
 classification of accounts : 
 
 a. Balance sheet accounts. 
 
 b. Property and equipment accounts. 
 
 c. Income and profit and loss accounts. 
 
 d. Operating revenue accounts. 
 
 e. Operating expense accounts.
 
 6 UNIFORM CLASSIFICATION OF ACCOUNTS. 
 
 4. Balance sheet. 
 
 The balance sheet is a statement of the assets, liabilities and surplus 
 or deficit of a business at a given time. It contains a statement of the 
 ledger balances after the accounts covering the revenues, expenses and 
 other income and deduction items have been closed into surplus. 
 
 5. Property and equipment accounts. 
 
 The property and equipment accounts, sometimes termed the "Fixed 
 Capital Accounts" are the accounts in which are shown the cost or 
 amounts expended on the different elements or units making up tlie 
 property used in the operations of the carrier's business. 
 
 The expenditures on property and equipment shall be distributed to 
 the thirteen primary property and equipment accounts (see pages 20- 
 22), in accordance with the text of such accounts. 
 
 5. Income accounts. 
 
 The income accounts show the amounts of money that the carrier has 
 received or becomes entitled to receive for services rendered during a 
 given period, the return accruing during the period upon investments 
 and the disbursements and obligations incurred and which affect the 
 disposition of the amounts received or which the carrier is entitled to 
 receive. The carrier's records shall be kept on an accrual basis. 
 
 The balances in the various income accounts shall be drawn together 
 annually in a ledger account or in a statement form which will give the 
 net income (or net loss) for the year. This balance shall then be trans- 
 ferred to the account "Surplus," showing the accumulated undivided 
 profits (or deficits) of the carrier. 
 
 The income accounts provided for in this classification appear on 
 pages 24-25. 
 
 7. Operating revenues. 
 
 By operating revenues are meant all moneys which the carrier receives 
 or becomes entitled to receive for services rendered. Credits to the 
 revenue accounts shall be based upon the gross charges made for the 
 service rendered. The totals of the operating accounts shall be trans- 
 ferred annually to the appropriate income accounts. The operating 
 revenue accounts provided for in this classification appear on pages 
 27-28. 
 
 8. Operating expenses. 
 
 By operating expenses are meant the expenses of maintaining the 
 property devoted to the carrier's operations, the expenses of conducting 
 the carrier's operations and the services incident thereto, depreciation, 
 expenses of collecting revenues and of accounting and the general 
 supervisional expenses in connection therewith. The totals of the
 
 CAKKIIORS BV WATI:K. / 
 
 operatinjjf expense accounts as provided herein sliall lie transferred 
 annually to income account 340. The operating expense accounts 
 provided in this classification appear on pages 30-32. 
 
 9. Cost of property and equipment. 
 
 The term '"Cost," as used herein, means the actual cost in money of 
 property or equipment purchased, or constructed ; if the consideration 
 given is other than money, such consideration shall be reduced lo actual 
 money value as of the date of purchase. 
 
 The cost of labor includes not only wages, salai'ies and fees to 
 employees, but also personal expenses of such employees when borne 
 by the carrier. The cost of materials and supplies used in construction 
 is their cost at the place where they enter into construction, and 
 includes the cost of transportation and inspection. 
 
 10. Property and equipment in service prior to January 1, 1923. 
 
 The original cost or ledger value of property and equipment in service 
 on December 31, 1922, shall be transferred to account 212 ''Property 
 and equipment in service prior to January 1, 1923," and carried therein 
 pending its segregation in accordance with the text of property and 
 equipment accounts 200 to 211, both inclusive. "When such segregation 
 is completed, account 212 shall be cleared by transfers to the appropri- 
 ate property and equipment accounts. 
 
 In cases where it is not possible from records previously maintained, 
 to ascertain the original cost of the different units, the original cost may 
 be estimated and the amounts so ascertained distributed to the appro- 
 priate property and equipment accounts as herein provided. If the 
 estimated cost is less than the amount at which rsuch property is carried 
 in account 212, the difference shall be charged to account 200, "Intang- 
 ible capital." If the estimated cost is in excess of the amount at which 
 the property is carried in account 212, such estimated cost must be 
 approved b}' the Railroad Commission before the entries can be placed 
 on the books. 
 
 11. New construction. 
 
 When any new property or equipment is constructed or otherwise 
 acquired, the cost thereof shall be charged to the appropriate property 
 and equipment accounts 200 to 211 in accordance with the text of the 
 accounts. 
 
 12. Reconstruction. 
 
 Reconstruction (or exti-aordinary repairs) includes tlie following: 
 (a) Restoring to an efficient service condition any floating c(iuii)inent, 
 
 buildings, structures or other units of property which have 
 
 deteriorated.
 
 8 UNIFORM CLASSIFICATION OF ACCOUNTS. 
 
 (h) Substitutint;', or replaeinji', new parts for old parts of equipment 
 or structures, in order to maintain normal and efficient service. 
 
 (c) Restoring the condition of propert}' and equipment damaged by 
 
 storm, flood, fire or other casualty. 
 
 (d) Recovering salvage and removing retired or abandoned property 
 
 in connection with above mentioned work. 
 
 Reconstruction should be taken into consideration in arriving at a 
 rate of depreciation as explained in Section 16. Care should be taken 
 to see that ordinary current repairs, as defined in Section 14, are not 
 handled as reconstruction. 
 
 When property and equipment is reconstructed and the property as 
 reconstructed is of no greater use or capacity than was the original 
 property, the cost of reconstruction shall be treated as follows : 
 
 Debit. — 
 
 To Account 158 "Reserve for accrued depreciation" the amount 
 
 carried therein relative to such property. 
 To Account 106 "Materials and supplies," the salvage value of 
 
 materials recovered from original property. 
 To accounts for operating expenses (600 or 610) the remainder of 
 
 the cost of reconstruction. 
 
 Credit. — 
 
 To Account 103 ' ' Cash " or to other appropriate accounts the cost 
 of reconstruction. 
 
 If the property as reconstructed is more useful or of greater capacity 
 than was the original property, the cost of reconstruction shall be 
 treated as follows : 
 
 Debit. — 
 
 To accounts for property and equipment (200 to 211) the excess 
 
 cost of the property as reconstructed over the cost or ledger value 
 
 of the original property. 
 To Account 158 "Reserve for accrued depreciation" the amount 
 
 carried therein relative to the property reconstructed. 
 To Account 106 "Materials and supplies" the salvage value of the 
 
 material recovered from the original property. 
 To operating expense accounts (600 or 610) the remainder of the 
 
 cost of reconstruction. 
 
 Credit. — 
 
 To Account 103 "Cash" or other appropriate accounts the cost of 
 reconstruction.
 
 CAHKMKKS HV WATKR. 9 
 
 When it is necossary to sul)st;mlially reconstruct nr to rc|)la('(' a luajoi" 
 portion of any unit ol" pruixTty oi- any import mt section of a contin- 
 uous structure, the cost shall he handled thro\i<ih the propei'ty and 
 e4uii)inent accounts; that is, the original cost of the properly removed 
 or replaced shall he credited to the api)ropriate projicrty and c(piipnient 
 accounts, and the cost of the new pi-operty shall l)e chai'ircd thereto. 
 (See Section 18, followinu). 
 
 13. Property and equipment retired. 
 
 When any unit of property and e(iuipnient is sold, destroyed, with- 
 drawn or otherwise retired from service for any cause, the cost or ledfjer 
 value (estimated if not known) of the unit retired shall he credited to 
 the appropriate account or accounts in which it is cairied and the 
 amount concurrently chartred to one or more of the followiui; accounts 
 as may be appropriate. 
 
 Debit. — 
 
 To Account 158 "Reserve for accrued depreciation" the amount 
 (estimated if not known) of the accrued depreciation carried 
 therein for the property retired. 
 
 To Account 106 "Materials and supplies" the salvage value of the 
 material, if any, recovered from such property and taken into 
 stores for future use or sale. 
 
 To Account 103 "Cash" with the proceeds, if any, from the sale 
 of material recovered from the property. 
 
 To Account 380 "Miscellaneous charo:es to inconu'" with the bal- 
 ance, if any. 
 
 The cost of the property, if any, installed in place of that retired 
 shall be charged to property and equipment accounts (200 to 211 j. 
 
 14. Repairs. 
 
 The items chargeable to repair accounts 600 ,ind (JIO sliouM he con- 
 fined to labor and material expended in repairs to vessel and to furni- 
 ture and fixtures, etc. The items includible in these repair accounts 
 should be for the purpose of keeping the equipment in serviceable condi- 
 tion, or to make the distinction more clear, to keep the equipment as 
 near as possible in the same condition (except for depreciation) as 
 when received from the shipbuilder, fully equipped and completed for 
 the purpose of rendering transportation service. 
 
 Expenditures for fuel, lubrication, food supplies, water and other 
 items not incurred in connection with the repair or renewal of any 
 part of the hull, machinery, furniture, tittings or fixtures of a fully 
 equipped and completed vessel shall not be charged to the repair 
 accounts.
 
 10 
 
 UNIFORM CLASSIFICATION OF ACCOUNTS. 
 
 A partial list of tlie more coninion articles oi- parts whieli an; used 
 in tlie repair or renewal of lioatinj? eciuipnieiit, together with incidental 
 expenses in connection therewith, follows. This list is representative 
 and not exhaustive, and should be used merely as a guide or to indicate 
 the nature of the items which are chargeable to repair accounts. The 
 items chargeable to repair accounts include, among others: 
 
 Aerial attachments. 
 
 Anchors. 
 
 Axes and handles. 
 
 Awnings. 
 
 Barometers. 
 
 Bedding. 
 
 Bells. 
 
 Berths. 
 
 Blocks and tackle. 
 
 Wash-bowls. 
 
 Carpets. 
 
 Cables. 
 
 Clocks. 
 
 Compasses. 
 
 Desks. 
 
 Dry-docking charges. 
 
 Electric fixtures. 
 
 Flags. 
 
 Fire extinguishers. 
 
 Freight charges on repair 
 
 terial 
 Gangplanks. 
 Hammers. 
 
 ma- 
 
 Hot water fixtures. 
 
 Kitchen equipment. 
 
 Lamps. 
 
 Life preservers. 
 
 :\Iats. 
 
 Mirrors. 
 
 Propellors. 
 
 Railings. 
 
 Ropes. 
 
 Smokestacks. 
 
 Speaking t nbes. 
 
 Storm shutters. 
 
 Towel racks. 
 
 Telescopes. 
 
 Telephone apparatus. 
 
 Ventilato)-.s. 
 
 Whistles and cord. 
 
 Window glass and shade. 
 
 Windlasses. 
 
 Wireless telegraph apparatus. 
 
 Electric wiring. 
 
 Wrenches. 
 
 15. Cost of repairs. 
 
 The term "Cost of Repairs" includes the wages, salaries and fees 
 paid to employees directly engaged in the work of repairs, the personal 
 expenses of the employees when borne by the carrier, the cost (includ- 
 ing transportation) of materials and supplies used, and the expense of 
 facilities employed in making the repairs. It includes also the cost of 
 direct supervision, such as by foremen or superintendents of repair 
 gangs, but does not include the salaries and expenses of the general 
 officers of the carrier. 
 
 16. Depreciation. 
 
 Depreciation is the decline in value of tangible property and is one 
 of the losses of the company properly chargeable to operating expenses. 
 There is a certain wear and tear taking place in the property during
 
 CARRIERS BY WATER. 11 
 
 operation which can not be covered by current repairs, antl iti addition, 
 the property is liable to become obsolete oi- inadetpialt' and for that 
 reason will i)robably at some future ihite be discarded or rephiccd. 
 
 In order to provide for the expense when property is ImUcu out of 
 service or replaced, ehar<ies should l)e made to operating expenses to 
 provide a reserve for such ])uri)ose. If tliis is not done, the expense 
 of replacing must be cliarged in bulk to operating expenses when the 
 property is replaced, which would cause the c()ni])any to show low- 
 operating expenses in years when no reconstruction takes phice and 
 high operating expenses in years when reconstruction is ])erformed. 
 By providing depreciation charges, the operating expenses will show a 
 record of expense from year to year more in harmony with ti'ue con- 
 ditions. 
 
 Charges for depreciation should l)e based on a rule that will eveidv 
 distribute over operating expenses during the life of the ))r<)perty the 
 original cost (less the salvage). The Commission does not in tliis sys- 
 tem of accounts prescribe the rate of depreciation. 
 
 The amount of the monthly or annual charges to cover dei)reciation 
 shall be charged to operating expense account 620 "Depreciation 
 of property and equipment" and credited to balance sheet account 
 158 "Reserve for accrued depreciation." Against the latter account 
 should be charged (to the extent that such charges are covered by the 
 reserve) the expense of reconstruction or the cost or ledger value of 
 property when retired. (See Sections 12 and 13, pages 7, 8 and 9.) 
 
 17. Subaccounts. 
 
 Nothing contained m this system of accounts prohibits a carrier 
 from segregating its receipts and payments in further retinement by 
 the adoption of two or more subaccounts representing one primary 
 account in this classification, provided that any one group of subaccounts 
 shall contain only such items as ai'e stated hei-ein to i)e proj)rrly inclmled 
 in tile primary account wliich they rei)rosent. 
 
 3 — 22792
 
 BALANCE SHEET ACCOUNTS. 
 
 Asset Side. 
 
 Page 
 100 — Property and Equipment , 13 
 
 101— Other Property 13 
 
 102 — Securities of Other Carriers 13 
 
 103— Cash 13 
 
 104 — Notes Receivable 13 
 
 10r> — Accounts Receivable 13 
 
 106 — Materials and Supplies 14 
 
 107 — Special Funds — 14 
 
 lOS — Prepayments 14 
 
 109 — Treasury Securities 14 
 
 110 — Discount on Capital Stock 14 
 
 111 — Discount and Expense on Long Term Debt 15 
 
 112— Other Debit Accounts 16 
 
 Liability Side. 
 
 150— Capital Stock 16 
 
 151 — Premium on Capital Stock 16 
 
 152 — Assessment on Capital Stock : 16 
 
 1.53 — Proprietor's Account 17 
 
 154 — Loiig Term Debt 17 
 
 155 — Notes Payable 17 
 
 1.56 — Accounts Payable 17 
 
 157 — Accrued Liabilities Not Due 17 
 
 158 — Reserve for Accrued Depreciation 17 
 
 1.50 — Other Credit Accounts IS 
 
 160— Surplus (or Deficit"! 18
 
 CARRIERS BY WATER. 13 
 
 TEXT OF BALANCE SHEET ACCOUNTS FOR CLASS B CARRIERS. 
 
 asset side. 
 
 100. Property and Equipment. 
 
 This account shall include the balances represetitin<>' the l)0()k value or 
 cost of all property and eciuipment devoted to the service of transporta- 
 tion by water at the date of the balance sheet. 
 
 Note. — Separate ledger accounts shall be kept for eacli primary property and equip- 
 ment accounts Nos. 200 to 212, if such accounts are applicable, and the total of the 
 balances of such accounts should be carried to account No. 100 when the balance sheet 
 is prepared. 
 
 101. Other Property. 
 
 This account shall include the cost of physical property such as lands, 
 buildings, etc., not used by the carrier in its transportation business. 
 
 102. Securities of Other Carriers. 
 
 This account shall include the cost or ledger value of stocks, bonds, 
 mortgages and other evidences of indebtedness owned by the carrier. 
 (Do not include in this account unissued or treasury stock, bonds, or 
 other evidences of indebtedness.) 
 
 103. Cash. 
 
 This account shall include the amount of cash and other current funds 
 in the hands of financial officers and agents, or on deposit in bank or 
 with trust companies available for use on demand. This account shall 
 also include cash deposited for payment of dividends or interest and 
 for other specific purposes. 
 
 104. Notes Receivable. 
 
 This account shall include the ledger value of all collectible obliga- 
 tions in the form of notes receivable or other similar evidences of money 
 receivable. 
 
 105. Accounts Receivable. 
 
 This account shall include amounts owing to the carrier ])y corpora- 
 tions, firms or individuals for services rendered and for whicli amounts 
 no notes have been given; net ])alance due from agents and other em- 
 ployees charged with tlie collection or custody- of current revenues ; 
 amo.unts advanced to employees i'or working funds ; dividends and inter- 
 est due and collectible on securities, mortgages, account.s, deposits; and 
 other items of a similar nature.
 
 14 uniform classificatiox of accounts. 
 
 106. ^Materials and Supplies. 
 
 This accoimt shall include the balauces representing the cost of 
 materials and supplies on hand arrived at as follows : 
 
 Charge to this account the cost of materials and supplies purchased 
 including transportation and other charges. Charge also to this account 
 at salvage value any material recovered from plant retired and taken 
 into store for future use or sale. Materials and supplies taken out of 
 store for use or sale shall be credited to this account at the value at 
 "uhich such materials and supplies are included in this account. 
 
 XOTE. — ^When materials and supplies are purchased for immediate use, they need 
 not be carried to this account, but may be charged directly to plant and equipment, 
 operating expenses, or other accounts affected. 
 
 107. Speclvu Funds. 
 
 This account shall include the cost or ledger value of securities or 
 other assets which have been set apart and are held in depreciation, 
 sinking, insurance or other funds. 
 
 108. Prepatmexts. 
 
 This account shall include the amount of rents, taxes, licenses, insur- 
 ance and other like expenses paid in advance to the period to which 
 they apply. As the period covered by such prepayment expires, this 
 account should be credited and the proper operating expense or other 
 accounts charged with the amount applicable to the period. 
 
 1('9. Treasit^y Securities. 
 
 This account shall include the par value of .stock and long term debt 
 ^\•hich have been nominally but not actually issued by the carrier. 
 Separate accounts shall be maintained for each class of stock, such as 
 common and prefen-ed, and for each class of long term debt. This 
 account shall also include uncanceled long term debt reacquired by the 
 carrier. 
 
 XoTE. — Capital stock is considered nominally issued when certificates are signed and 
 sealed and placed with the proper officers for sale and delivery, or otherwise held 
 within the control of the carrier. It is considered actually issued when it has been 
 sold to a bona fide purchaser for a valuable consideration and such purchaser holds 
 it free from all control of the carrier. 
 
 Long term debt is considered to be nominally issued when certified by the trustee 
 and placed with the proper officer for sale and delivery, or otherwise held within the 
 control of the carrier. It is considered to be actually issued when it has been sold 
 to a bona fide purchaser for a valuable consideration and such purchaser holds it fret 
 from all control of the carrier. 
 
 110. Discount On Capit^vl Stock. 
 
 This account shall include the discount ou capital stock i.ssued or 
 assumed by the carrier. By the term "Discount" is meant the excess 
 01 the par value of stock actually issued or assumed over the cash value 
 of the consideration received for such stock. Separate accounts shall 
 be maintained for the discount on each class of stock, such as common
 
 CARRIERS BY WATER. 15 
 
 <ind preferred, and also for each issiif of tlir <~;\\\\r <'l,iss if the terms 
 in any way differ. 
 
 Entries in these accounts shall be carried therein until offset : 
 
 (1) By premium realized by subsequent sales of the same class of 
 
 stock ; 
 
 (2) By assessments levied on the stockholders; 
 
 (3) By appropriation from surplus for that purpose; 
 
 (4) B}' the difference between the par value of the same class 
 
 of stock reacciuired and the amount paid therefor, provided 
 the amount paid is less than the par value. 
 
 Note.— The cash as received from stockholders in respect to assessments shall be 
 carried to account No. 152, "Assessment on Capital Stock." If the total received is 
 less than the balance at the debit of di.scount account, the amount received shall bf? 
 transferred to this account ; if the total received is larger, the balance at the debit 
 of this account shall be transferred to Account No. 15J, "Assessment on Capital 
 Stock." 
 
 Ill, Discount and Expense On Long Term Debt. 
 
 This account shall include discount on indebtedness, such as bonds, 
 notes, mortgages, receiver's certificates and other evidences of indebt- 
 edness, issued or assumed by the carrier and not payable until after one 
 year from date of issue. It shall include the expense in connection with 
 the issue and initial sale of long term debt, such as fees for drafting 
 mortgages and deeds of trust ; fees and charges for issuing or recording 
 mortgages and deeds of trust ; co.st of printing bonds, certificates of 
 indebtedness and other commercial paper having a life of more than 
 one year ; fees paid trustees under mortgages and deeds of trust in con- 
 nection with the issue of bonds or other forms of indebtedness. 
 
 By the term ''Di.scount" is meant the excess of the par value of the 
 securities issued or assumed and the accrued interest thereon, over the 
 actual cash value of the consideration received for such securities. 
 
 Ledger accounts shall be provided to cover discount and expense for 
 each class of debt, such as bonds, mortgages, notes, etc., and also for 
 each issue of the same class, if the terms are in any way different. The 
 total of the balance remaining shall be included in the balance sheet 
 in this account. 
 
 Each month or year there shall be credited to this account and charged 
 to income account 380 "Miscellaneous charges to income" the pro- 
 portion of the debit carried in these accounts, such proportion to be 
 based upon the ratio which such period bears to the remaining life of 
 the respective security. 
 
 If the carrier desires, it may write off the debit balance in this account 
 more rapidly than above .stated.
 
 16 uniform classification of accounts. 
 
 112. Other Debit Accounts. 
 
 This account shall include all debits pertaining to the balance sheet 
 v.hich are not provided for elsewhere, including debit items, the final 
 disposition of which has not been determined. 
 
 Note. — Tlie entries in this account shall be made in sufficient detail to permit an 
 analysis in the reports to the Railroad Commission and where necessary, separate 
 subaccounts shall be provided. 
 
 liability side. 
 
 150. Capital Stock. 
 
 This account shall include the total par value of outstanding capital 
 .stock. In case of the issue of two or more classes of capital stock, such 
 as common and preferred, a subaccount shall be provided for each class. 
 If capital stock is paid for by installments, and the stock issued when 
 fully paid, a subaccount entitled "Installments on capital stock" shall 
 be provided, to which shall be credited the amounts of installments 
 received by the company. When stock certificates are issued to stock- 
 holders, the subaccount shall be charged and the appropriate capital 
 stock account shall be credited. 
 
 In stating this account on the balance sheet statement, the par value 
 of stock held by the company in its treasury, in sinking and other 
 reserve funds, or otherwise, shall be deducted, in order that this account 
 will show only the par value of stock held by the public. 
 
 151. Premium On Capital Stock. 
 
 This account shall include : 
 
 A. The excess of the actual money value (at the time of issue of. 
 
 stock) of the consideration received, over the par value of 
 capital stock issued ; 
 
 B. The amount by which the face value of capital stock reacquired 
 
 exceeds the amount paid therefor. 
 
 The entries in this account shall be carried therein until offset: 
 
 (1) By discount suffered on subsequent sales of the same class of 
 
 stock ; 
 
 (2) By the difference between the par value of the same class of 
 
 stock reacquired and the amount paid therefor, provided the 
 amount paid is in excess of par value ; 
 
 (3) If the corporation elects and is permitted to distribute to its 
 
 stockholders all or any portion of the premium on its capital 
 stock, the amount distributed shall be charged to this account. 
 
 152. Assessment On Capital Stock. 
 
 This account shall include the amount received in respect of assess- 
 ments levied on capital stock. Entries in this account shall be carried
 
 CARRIERS BY WATER. 17 
 
 therein until offset, as explained in the note nudvr account 110 
 "Discount on capital stock." 
 
 153. Proprietor's Account. 
 
 This account is to bo used instead of account 150 where the business is 
 conducted by an individual, firm, coj)artnership or under any style 
 other than that of an incorpoi-ated compan.w and shall iiidiidi' the 
 amount paid into the business by the party or pai-ties interested in the 
 concern. 
 
 If separate accounts are kept for each of the parties interested, the 
 total of the balances in such accounts shall be shown in one fi<iure in the 
 balance sheet. 
 
 154. Long Term Debt. 
 
 This account shall include the face value of all hoiuls, mortgages, 
 receiver's certificates, notes and other evidences of indebtedness issued 
 or assumed by the carrier and which are not due and payable until one 
 year from date of issue. In ease of the issue of two or more classes of 
 long term debt, a subaccount shall be provided for each class. 
 
 In stating this account on the balance sheet statement, the par value 
 of long term debt issued or assumed by the carrier and held by it in its 
 treasury, in sinking or other reserve funds, or otherwise, shall be 
 deducted, in order that this account shall show only the par value of 
 the long term debt held by the public. 
 
 155. Notes Payable. 
 
 This account shall include the par value of all notes, drafts and other 
 evidences of indebtedness issued or assumed by the carrier and payable 
 on demand or within one year from date of issue. 
 
 156. Accounts Payable. 
 
 This account shall include miscellaneous bills unpaid, wages unpaid, 
 audited vouchers unpaid, dividends declared and unpaid, interest due 
 and unpaid and similar items. 
 
 157. Accrued Liabilities Not Due. 
 
 This account shall include the amount of taxes, interest, rents and 
 other expenses which have accrued and have been charged to operating 
 expenses or other accounts, in excess of the amounts actually paid. 
 AVhen the payments become due, this account shall be charged and the 
 cash or other accounts affected shall be credited. 
 
 158. Reserve for Accrued Depreciation. 
 
 This account shall include the amounts which are charged monthly or 
 annually to operating expense account 620 "Depreciation of prop-
 
 18 T7NIP0RM CLASSIFICATION OF ACCOUNTS. 
 
 orty and equipment,'' to cover the depreciation taking place in prop- 
 erty and e(iuipment, as exi)lained on ])ao'e 10 under '^De[)reciation. " 
 When any plant or e(|uipiuent is reconstructed or retired, the amount 
 heretofore credited to this account in respect of tlie i)roperty recon- 
 structed or retired (see Section 13, page 9) shall be charged to this 
 account. 
 
 159. Other Credit Accounts. 
 
 This account shall include all credit items pertaining to the l^alance 
 sheet which are not provided for elsewhere, including credit items, the 
 fhial disposition of which is uncertain. It shall also include unex^ 
 tinguished premiums on long term debt, reserves provided for personal 
 injuries, insurance, damage claims and other similar items. 
 
 Note. — The entries in tliis account shall be made in sufficient detail to pfermit an 
 analysis in the reports to tlie Railroad C'ommission and where necessary, separate 
 subaccounts shall be provided. 
 
 160. Surplus (or Deficit). 
 
 Under this head on the balance sheet statement shall be shown the bal- 
 ance of the income account. When this account shows a deficit or debit 
 balance, it shall be shown on the balance sheet in red ink. The surplus 
 account is the difference between the total assets and the total liabilities 
 and shows the undivided surplus or deficit of the carrier. 
 
 The net income (or loss) for the year as shown liy the income account 
 shall be transferred to this account. 
 
 This account shall also be credited or charged with any adjustments 
 affecting the asset and lia])ility accounts, and any miscellaneous amounts 
 or losses which are not attributable to the operations for the year, as 
 shown by the income account. 
 
 The entries to this account shall be shown in such detail as will clearly 
 explain their purposes and show all significant facts involved.
 
 PROPERTY AND EQUIPMENT ACCOUNTS. 
 
 Page 
 200— Intangibles 20 
 
 201 — Line Equipment 20 
 
 202 — Harbor Equipment 20 
 
 203 — Miscellaneous Floating Equipment 20 
 
 204 — Wharves, Docks and Terminals 20 
 
 205— Wharf Equipment 21 
 
 206 — iWater Front and Terminal Grounds 21 
 
 207 — Other Grounds 21 
 
 208 — General and Local Office Buildings 21 
 
 209 — Office Furniture and Equipment 21 
 
 210 — Shops, Power Plants and Miscellaneous Structures 22 
 
 211 — Miscellaneous 22 
 
 212 — Property and Equipment in Service Prior to January ], 1923 22
 
 20 UNIFORM CLASSIFICATION OF ACCOUNTS. 
 
 TEXT OF PROPERTY AND EQUIPMENT ACCOUNTS FOR CLASS 
 
 B CARRIERS. 
 
 Note. — The cost of articles of small value or of short life or articles that are likely 
 to be lost or stolen shall not be charged to the property and equipment accounts but 
 sliall be cliarged to the appropriate operating expense accounts lierein provided. 
 
 200. Intangibles. 
 
 Charge to this account the cost of organizing- a carrier corporation-, 
 also the cost of franchises and patent rights and the cost of other intang- 
 ible property acquired by the carrier and used by the carrier in its opera- 
 tions. 
 
 201. Line Equipment. 
 
 Charge to this account the cost of equipment designed or intended 
 primarily for the transportation service between terminals, or perma- 
 nently so used, including necessary appurtenances, furnishings and 
 fixtures. 
 
 Among the more important equipment, the cost of which should be 
 included hereunder, are steamships, sailing vessels, barges, ferry boats, 
 tugboats and vessels propelled by internal combustion engines. 
 
 202. Harbor Equipment. 
 
 Charge to this account the cost of equipment designed or intended 
 primarily for harbor service or permanently so used, including neces- 
 sary appurtenances, furnishings and fixtures. Among the more impor- 
 tant equipment, the cost of which shall be included under this account, 
 are tugboats, transfer boats and lighters. 
 
 203. Miscellaneous Floating Equipment. 
 
 Charge to this account the cost of equipment other than equipment 
 of the classes provided for in accounts 201 and 202. Among the more 
 important equipment, the cost of which is to be included in this account, 
 are dredges, pile drivers, scows, etc., including the necessary appur- 
 tenances and fixtures. 
 
 204. Wharves, Docks and Terminals. 
 
 Charge to this account the cost of wharves, piers and other landings 
 used for loading and unloading vessels, including dredging of docks and 
 slips; cost of piling, pile protection, building cofferdams, pumping or 
 bailing water, masonry walls, or fillings, etc. ; cost of transportation 
 and all other expenses incident to construction ; also the cost of material 
 and labor expended in buildings and structures thereon, including 
 water, gas and sewer pipes and connections, steam heating apparatus 
 and stoves, electric bells, electric light and power fixtures and wiring 
 for same, and all other material and fixtures used to complete the build-
 
 CARRIERS HV \VATP:R. 21 
 
 ing; salaries and expenses ol' iii'ehiteets ; cost of fences, paving, ete., 
 upon the grounds of and appi'oaclies to the wharves. 
 
 205. Whar?^ Equipment. 
 
 Charge to -this account the cost of nieehanieal and othei- appliances on 
 Avharves used in connection with loading and unloading of vessels and 
 for transferring freight, such as traveling-platform conveyors, coal- 
 handling plants, cranes, derricks, trucks and other like appliances. 
 
 206. Water Front and Terminal Grounds. 
 
 Charge to this account the cost of land acquired for wliarves, docks 
 and for buildings; also the cost of land purchased for ingress to and 
 egress from wharf buildings and terminal grounds. 
 
 The cost of water front and terminal grounds includes the pay and 
 expenses of counsel, engineers and others while especially engaged in 
 connection \vith the acquisition of such grounds ; the expenses of 
 appraisals; commissions paid outside parties for purchase of such 
 properties; the cost of plats, notarial and recording fees. 
 
 207. Other Grounds. 
 
 Charge to this account the cost of land acquired for use directly in 
 connection with the operation of the line but in excess of and in addi- 
 tion to that actually required for the purposes stated in account 206, 
 including all expenses incurred therewith as enumerated in that 
 account. When such property is held for investment purposes, the 
 cost thereof should be included in balance sheet account 101. 
 
 208. General and Local Office Buildings. 
 
 Charge to this account the cost of general and local otifice buildings, 
 permanent signs, platforms, sidewalk excavations, foundations, 
 drainage, water, gas and sewer pipes and connections; steam heating 
 apparatus, stoves, elevators, electric bells, electric light and power 
 fixtures (including wiring) ; and of all other api)urtenances or fixtures 
 of a permanent nature used to complete the building; also the cost of 
 fences, hedging, grading and beautifying grounds after building has 
 been completed, but not any cost of maintenance. 
 
 Note. — This account should not include the cost of similar buildings located on 
 wharves and piers which should be charged to account 204. 
 
 209. Office Furniture and Equipment. 
 
 Charge to this account the cost of the initial furniture, equipment 
 and fixtures for general and local office buildings, such as office safes, 
 desks, chairs, rugs, filing cabinets, movable i)artitions, typewriters, 
 adding machines, fire extinguishers, electric fans, and other office
 
 22 UNIFORM CLASSIFICATION OF ACCOUNTS. 
 
 devices, fixtures etc., when not built in or permanently attached to 
 buildings. 
 
 210. Shops, Power Plants and Miscellaneous Structures. 
 
 Charge to this account the cost of all buildings to be used as shops, 
 power plants, electric light plants and structures of every kind which 
 are not otherwise herein particularly referred to, including cost of 
 material and labor expended in their construction, and all machinery 
 appliances and tools necessary to equip them for service. 
 
 211. Miscellaneous. 
 
 Charge this account with expenditures of a special or incidental 
 nature incurred during progress of construction which can not 
 properly be charged directly to any of the accounts in this classification, 
 such as, ' engineering and superintendence, legal expenses, injuries 
 and damages, taxes, insurance and interest during construction. 
 
 212. Property and Equipment in Service Prior to January 1, 1923. 
 Transfer and charge to this account the total of the balances in the 
 
 ledger accounts representing the cost of the carrier's property and 
 equipment which was installed prior to January 1, 1923, and which 
 is still in service on the date of the balance sheet. The amount charged 
 to this account may be distributed to Accounts numbers 200 to 211, 
 both inclusive, as indicated in section 10, page 7.
 
 INCOME ACCOUNTS. 
 Credits. 
 
 Page 
 ._ 24 
 
 300 — Transportation Kevenne 
 
 310— Revenue from Operations Otlior than Transportation 24 
 
 24 
 
 320— Miscellaneous Income 
 
 Debits. 
 
 04. 
 340 — Operating Expenses 
 
 350— Taxes -■* 
 
 360 — Interest Accrued -^ 
 
 370 — Dividends Declared -"^ 
 
 380 — Miscellaneous Charges to Income 25
 
 24 UNIFORM CLASSIFICATION OF ACCOUNTS. 
 
 TEXT OF INCOME ACCOUNTS FOR CLASS "B" CARRIERS. 
 
 CREDITS. 
 
 300. Transportation Revenue. 
 
 This account shall include the total revenues derived for the year, 
 or other period covered by the income account, from transportation 
 operations, and property reported under the primary revenue accounts 
 500, 510 and 520. 
 
 310. Eevenue from Operations Other Than Transportation. 
 
 This account shall include the total of the revenue derived from opera- 
 tions other than transportation and properly reported under the 
 primary revenue accounts 530, 540 and 550. 
 
 320. Miscellaneous Income. 
 
 Credit to this account all revenues accruing to the company other 
 than those provided for in accounts 300 and 310, such for example, as 
 
 (a) Interest and dividends received on securities owned by the 
 company ; 
 
 (6) Rents from land, equipment or other property not used by the 
 carriers in its transportation operations; 
 
 (c) Profit arising from the sale of land or other assets ; 
 
 (d) Operating and other income received subsequent to the fiscal 
 
 period to which such income pertains; 
 
 (e) Credits arising from cancellation of liabilities, such cancella- 
 
 tions being due to inability to locate the creditor or other 
 good cause. 
 
 The above examples are not to be considered as comprising all the 
 items that may be credited to this account, but are given merely as 
 representative illustrations. 
 
 Note. — The records shall be so kept tliat a statement can be prepared showing the 
 credits from each source. 
 
 DEBITS. 
 
 340. Operating Expenses. 
 
 This account shall include the total operating expenses or the com- 
 pany for the year, being amounts transferred from operating expense 
 accounts 600 to 680. 
 
 350. Taxes. 
 
 This account shall include the amount of taxes accrued during the 
 period covered by the income account. The account shall be kept in 
 such a manner as to show state or local taxes accrued on property used 
 by the carrier in the transportation business; the state and local taxes
 
 CARRIERS BY WATER. 25 
 
 accrued on property not used in the transportation business and the 
 amount of income taxes payable to the Federal government. 
 
 360. Interest Accrued. 
 
 Charge to this account interest on bonds, mortgages, notes and other 
 interest bearing obligations and interest on open accounts. The interest 
 charges on securities held by the compan}^ in its treasury or pledged as 
 collateral shall not be included in this account. 
 
 370. Dividends Declared. 
 
 Charge to this account the amount of dividends declared on the 
 capital stock actually outstanding. 
 
 380. Miscellaneous Charges to Income. 
 
 Charge to this account all expen>ses which are not chargeable to 
 operating expenses or to the preceding income debit accounts, such 
 for example, as 
 
 {a) Rents paid other than those provided for elsewhere; 
 
 (&) Operating expenses relating to a previous fiscal period; 
 
 (c) Losses arising from the sale of land or other assets; 
 
 {d) Donations to charitable institutions and organizations for 
 promoting social welfare; 
 
 (e) Amortization of debt discount and expense. 
 
 The above examples are not to be considered as comprising all the 
 items chargeable to this account, but are given merely as representative 
 illustrations. 
 
 Note. — The records shall be so kept that a statement can be prepared showing the 
 debits from each source.
 
 OPERATING REVENUE ACCOUNTS. 
 
 A. Revenue from Transportation. 
 
 Page 
 500— Freight Revenue 1!7 
 
 510 — Passenger Revenue : 27 
 
 520 — Other Transportation Revenue 0.1 
 
 B. Revenue from Operations Other Than Transportation. 
 
 530 — Revenue Involving Rent, Maintenance and Operation of Vessels 28 
 
 540 — Rents of Buildings and Other Property 28 
 
 550— Miscellaneous 28
 
 CAKiUKHS BY WATKK. 27 
 
 TEXT OF OPERATING REVENUE ACCOUNTS FOR CLASS "B" 
 
 CARRIERS. 
 
 a. revenue from transportation. 
 
 500. Freight Revenue. 
 
 This account slionld iiicliulc nnioinils earned by a carrier for the 
 transportation of freight. 
 
 This aecoimt should be credited with a carrier's proportion of 
 revenue from the transportation of freight, including the proportion 
 accruing from arbitraries allowed in rates for cargo insurance; also 
 overcollections made in excess of correct rates, such overcoUeetions 
 to be held subject to claim. 
 
 This account should be charged with refunds of overcharges resulting 
 from the use of erroneous rates, calculations, weights or classifications ; 
 autliorized allowances and arbitraries; amounts paid for completing 
 hauls or effecting deliveries when the cost of such service is included in 
 the rates charged by the carrier; amounts imcollected or refunded on 
 freight destroyed in transit and on short and lost freight ; also uncol- 
 lectible undercharges determined after delivery has been made. 
 
 Note. — If a carrier maintains a tran.sfer or a lighterrse service, tlie expenses of 
 wiiicli are included in operating expenses under Account 640, "Operation of Vessels," 
 the revenues derived from this service should be credited to Account 1520 "Other 
 Transportation Revenue." If the service is performed by an outside party, its cost 
 to the carrier should be charged to Account 520. 
 
 510. Passenger Revenue. 
 
 This account should include amounts earned by a carrier for the 
 transportation of passengers. This account should be credited with a 
 carrier's proportion of revenue from the sale of tickets and from the 
 collection of casli fares, including charges for sleeping accommodations 
 and meals; also overcollections made in excess of correct rates, such 
 overcollections to be held subject to claim. 
 
 This account should be charged with amounts paid for I'efund of 
 fares and for redemption of tickets ; also amounts paid for transferring 
 passengers and baggage between terminals except in cases in which the 
 transfer of both passengers and baggage is provided for in the division 
 of through rates. 
 
 520. Other Transportation Revenue. 
 
 This account should be credited with amounts charged by a carrier for 
 excess baggage, packages, articles, dogs, express matter, mails and use 
 of mail facilities, sale of refreshments, cigars and newsstand supplies, 
 and all other items incidental to the transportation of passengers. 
 
 This account should also include earnings from lighterage, towage 
 and like service; from running vessels on excursions or special trips
 
 28 UNIFORM CLASSIFICATION OF ACCOUNTS. 
 
 when specific charges, not based on the number of passengers carried, 
 are made for transportation between designated points. 
 
 This account should be charged with refunds of amounts previously 
 credited to it. 
 
 b. revenue from operations other than transportation. 
 
 530. Revenue Involving Rent, Maintenance and 
 Operation of Vessels. 
 This account should include amounts earned by a carrier for the 
 lease, hire or rent of vessels or other floating equipment when, under 
 the conditions of the charter or lease, the payments are for the rent, 
 maintenance and operation of the equipment. 
 
 540. Rents of Buildings and Other Property. 
 
 This account should include a carrier's revenue from rents of land, 
 buildings and property other than that covered by account 530 used in 
 connection with its operations when the cost of operating and maintain- 
 ing the portion rented can not be separate from the cost of operating 
 and maintaining the portion used by the carrier. 
 
 550. Miscellaneous. 
 
 This account should include a carrier's revenue from operations 
 not otherwise provided for, such as amounts received for wharf and 
 vessel privileges; parcel room receipts; storage receipts; wharfage, 
 demurrage and other items of like nature. 
 
 This account should be charged with refunds of amounts previously 
 credited to it.
 
 OPERATING EXPENSE ACCOUNTS. 
 
 Page 
 600— Repairs of Equipment 30 
 
 610 — Repaii's of Terminals 30 
 
 620 — Depreciation of Property and Equipment 30 
 
 630— Traffic Expenses 30 
 
 640 — ^Transportation — Operation of Vessels 31 
 
 650 — Transportation — Operation of Tei'minals 31 
 
 660 — Transportation — Incidental Expenses 31 
 
 670 — General Expenses 31 
 
 6S0 — Charter or Lease Expenses 32
 
 30 UNIFORM CLASSIFICATION OF ACCOUNTS. 
 
 TEXT OF OPERATING EXPENSE ACCOUNTS FOR CLASS B 
 
 CARRIERS. 
 
 000. Repairs of Equipment. 
 
 This account shall include the pay of officers and clerks, office and 
 other expenses of those in charge or engaged in the maintenance of 
 equipment; the cost of all material and labor expended in repairs and 
 upkeep of vessels, barges, tugs, lighters, miscellaneous floating equip- 
 ment, shop supplies, injuries to persons engaged in maintenance of 
 equipment (less any amounts recovered through accident insurance). 
 
 610. Repairs of Terminals. 
 
 This account shall include the pay of officers and clerKs, officers and 
 other expenses of those in charge of or engaged in the maintenance of 
 terminals; all expenses incident to the repairs and upkeep of docks, 
 wharves, buildings and fixtures used in the operations of a carrier; the 
 cost of maintaining grounds and approaches connected therewith ; 
 injuries to persons engaged on maintenance of terminals (less any 
 amounts recovered through accident insurance). 
 
 620. Depreciation of Property and Equipment. 
 
 There should be charged to this account and included in the cost of 
 operations a monthly or annual charge for depreciation on vessels, 
 tugs, lighters, other miscellaneous floating equipment and terminal 
 jn-operty. 
 
 This charge should be computed at a certain rate per cent on the 
 original cost (estimated if not known) record value or purchase price 
 of such equipment, to provide a reserve which will represent its 
 expired value or depreciation. The charges made should equal the 
 amounts estimated to be necessary to cover obsolescence and inade- 
 quacy ; such wear and tear as have accrued and are not provided for by 
 current repairs ; and also to cover the cost of property destroyed by 
 such casualties as are not provided for by insurance. 
 
 When the amounts are charged to Account 620 they should be 
 concurrently credited to Account 158 "Reserve for Accrued Deprecia- 
 tion." 
 
 630. Traffic Expenses. 
 
 This account shall include the pay of officers and clerks, office and 
 other expenses of those engaged in securing and directing traffic, the 
 preparation and distribution of tariffs, classifications and rate sheets, 
 etc. ; the cost of outside agencies, solicitors, advertising and other 
 expenses for attracting traffic.
 
 carriers bv water. 31 
 
 640. Tkansi'ohtatiox — Oi'ekatiox ok Vesse:i.s. 
 
 This account shall iiii'ludc tlic pay of oflicei's and clerks, oiYicv. and 
 other expenses of those in ehariic of or eniia.iicd in tlie operating- of 
 vessels, wages of erews, fuel, lul)rieation. food mid othci- supplies and 
 departmental expenses incident to the opei-ation of V(>ssels. 
 
 650. TRANsi'oiri'ATioN — Operation of Terminals. 
 
 This account shall include the i)ay of oflicei's and clei-k's. ofHce and 
 other expenses of those in chari;'e of or engaged in liie opei-alion of 
 terminals, port or station agents, stevedore and wharf lalxir, expenses 
 in connection with the 0{)eration of tugs, lighters and oilier floating 
 equipment employed in terminal operations; switching and other 
 transfers; wharf supplies and expenses, office supplies and expenses 
 at terminals. 
 
 660. Transportation — IncidentaI; Expenses. 
 
 This account shall include all amounts, not recoverable through 
 insurance, paid for loss, damage, delays or destruction of freight, 
 baggage or property, uncollectible freight charges paid other carriers 
 on lost, misrouted, damaged or refused shipments ; the cost of repacking 
 damaged merchandise and other property; all expenses (less amounts 
 recovered through accident insurance) incident to injuries to persons 
 directly engaged in connection with transportation. 
 
 This account should be credited with any insurance recovered and 
 net amounts received from the sale of unclaimed or damaged freight, 
 baggage and property. 
 
 670. General Expenses. 
 
 This account shall include salaries and expenses of general ofificers, 
 other officers and office clerks whose duties are of such a general char- 
 acter that they can not be specifically charged to any of the preceding 
 expense accounts. 
 
 Stationery, printing and postage. 
 
 General office supplies and expenses, including repairs to office 
 equipment, wages of janitors, water, ice, light, heat, rent, telephone 
 and telegrams, etc. 
 
 Legal expenses, insurance and other miscellaneous general expenses. 
 
 680. Charter or Lease Expenses. 
 
 This account shall include all amounts paid for th(> lease, hire or 
 rent of vessels or other floating e(iuij)ment when under the t^n-ms of the 
 charter or lease the payments include rent, maintenance and operation 
 of the equipment. 
 
 Note. — Tliis account is to be used when the expen.ses of maintenance and operation 
 are not separated from the hire or rent ; when they are separable, the rent portion 
 only should be charged to this account, and the cost of maintenance and operation 
 should be charged to the appropriate accounts, 600, 640 or 650.
 
 INDEX. 
 
 Page 
 
 Accounts payable- _ 17 
 
 Accrued liabilities 17 
 
 Assessment on capital stock 16 
 
 Balance sheet, defined 6 
 
 Balance sheet accounts, list of 12 
 
 Capital stock, assessment op 16 
 
 Capital stock 16 
 
 Capital stock, premium on 16 
 
 Carriers by water, definition 5 
 
 Charter or lease expenses 32 
 
 Classification of accounts, division of 5 
 
 Commission's decision 33-3 5 
 
 Construction, new 7 
 
 Depreciation, defined 10, 11 
 
 Depreciation of property and equipment 30 
 
 Depreciation reserve 17 
 
 Deficit 18 
 
 Dividends declared 25 
 
 Docks 20 
 
 Equipment 20 
 
 Expenses, operating 24 
 
 Floating equipment, miscellaneous 20 
 
 Freight revenue 27 
 
 General definitions, instructions and information 5-11 
 
 General expenses 31 
 
 Harbor equipment 20 
 
 Income accounts, defined 6 
 
 Income accounts, list of 23 
 
 Income, miscellaneous 24 
 
 Intangible capital 20 
 
 Interest accrued 25 
 
 Land 21 
 
 Line equipment 20 
 
 Long term debt 17 
 
 Miscellaneous capital 22 
 
 Miscellaneous charges to income 25 
 
 Miscellaneous structures 22 
 
 Notes payable 17 
 
 Office buildings, general and local 21 
 
 Office furniture and equipment 21 
 
 Operating expenses 24 
 
 Operating expenses, defined 6 
 
 Operating expense accounts, list of 29 
 
 Operating revenues, defined 6 
 
 Operating revenue accounts, list of 26 
 
 Other credit accounts 18 
 
 Other debit accounts 16 
 
 Other grounds . 21 
 
 Passenger revenue 27 
 
 Power plants 22 
 
 Premium on capital stock 16 
 
 Property and equipment accounts, list of 19 
 
 Property and equipment accounts, defined 6 
 
 Property and equipment, cost of 7 
 
 Property and equipment retired 9 
 
 Property and equipment in service prior to January 1, 1923 7, 22 
 
 Proprietor's accounts 17 
 
 Reconstruction, accounting for 7 
 
 Reconstruction, manner of accounting 7, 8 
 
 Repairs 30 
 
 Repairs, cost of 10 
 
 Repairs, definition and accounting for 9, 10 
 
 Reserve for accrued depreciation 17 
 
 Revenue, freight ! 27 
 
 Revenue from operations other than transportation 24 
 
 Revenue, miscellaneous 28 
 
 Revenue, other transportation J 27 
 
 Revenue, passenger 27 
 
 Revenue, rent, etc 28 
 
 Revenue, transportation 24 
 
 Shops 22 
 
 Surplus 18 
 
 Taxes 24 
 
 Terminals 20 
 
 Traffic expenses , , 30 
 
 Transportation expenses .- ; 31 
 
 Transportation revenue 24 
 
 Vessels 20 
 
 Waterfront and terminal grounds 21 
 
 Wharves, docks and terminals 20 
 
 Wharf equipment 21
 
 CARRIERS BY WATER. 33 
 
 Appendix A. 
 
 Decision No. 11260. 
 
 Before the 
 
 Railroad Commission of the State of California. 
 
 IN THE MATTER OF THE IIn^VESTIGATION ON THE COMMISSION'S 
 OWN MOTION OF THE TROrOSED UNIFORM CLASSIFICATION 
 OF ACCOUNTS FOR CARRIERS BY WATER. 
 
 Case No. 1760. 
 
 C. E. Crocker, for Bay Cities Transportation Company : 
 
 J. 8. P. Dean, for Bay and River Boat Owners" Association ; 
 
 C. G. Ball, for N. Fay & Sons ; 
 
 E. Byrtic, for E. H. Rideout & Company ; 
 
 B. C Schrieber in propria persona; 
 
 N. E. Brown,, for San Diego and Coronado Ferry Company ; 
 
 D. H. Crowell, for W'ilmington Transportation Company. 
 
 By The Commission. 
 
 OPINION. 
 
 This is a proceeding instituted by the Commission on its own motion 
 for the purpose of fixing and prescribing a uniform classification of 
 accounts for carriers by water. 
 
 Public hearings were had in this matter before Examiner Westover 
 in San Francisco and Los Angeles. Notice of these hearings was mailed 
 to all carriers by water, and such carriers were given an opportunity to 
 show cause why the Commission should not adopt the uniform classifi- 
 cation of accounts prescribed by the Interstate Commerce Commission 
 for carriers by water. A copy of the Interstate Commerce Commission's 
 system of accounts is on file in this proceeding and marked ''Commis- 
 sion's Exhibit A." 
 
 J. S. P. Dean, representing the Bay and River Boat Owners' Associa- 
 tion, urges that a system of accounts more simple than that of the 
 Interstate Commerce Commission, and contained in a single pamphlet, 
 ])e prescribed for smaller carriers by water. With this exception, no 
 one raised any objection to putting into effect the Interstate Commerce 
 Commission 's classification. 
 
 Section 48 of the Public Utilities Act empowers the Railroad Com- 
 mission to establish accounting systems. It contains, however, this 
 'proviso : 
 
 The system of accounts established by the Commission and the forms of 
 accounts, records and memoranda prescribed by it shall not be inconsistent, in 
 the case of corporations subject to the provisions of the act of congress
 
 34 UNIFORM CLASSIFICATION OF ACCOUNTS. 
 
 entitled "An net to re^uliite (■uiiiiueree. ;»i)])ro\e(l February 4, 1887" * * * \Yith 
 the systems and forms from time to time established for such corporations 
 by the Interstate Commerce Commission, but nothing herein contained shall 
 affect the power of the Commission to prescribe forms of accounts, records 
 and memoranda covering information in addition to that required by the Inter- 
 state Commerce Commission. 
 
 Therefore as to those carriers who may be engaged in both intrastate 
 and interstate bnsiness and thns subject to the jurisdiction of both the 
 Railroad Commission aiul the Interstate Commerce Commission, the 
 Railroad Commission by the order contained herein adopts and pre- 
 scribes, in so far as it has jurisdiction, the classification of accounts 
 prepared ami prescribed by the Interstate Commerce Commission and 
 now in effect. 
 
 There appear to be some carriers who are engaged only in intrastate 
 business and therefore subject only to the jurisdiction of the Railroad 
 Commission. For the purpose of accounting, such carriers have been 
 divided into two classes. Class A includes all carriers having annual 
 operating revenues of more than $500,000, while Class B includes all 
 carriers having annual operating revenues of $500,000 or less. This 
 division is in line with that of the Interstate Commerce Commission. 
 Carriers who fall wdthin Class A will be required to keep their 
 accounts and records in accordance with the uniform classification of 
 accounts of the Interstate Commerce Commission. 
 
 Using the Interstate Commerce Commission's classification as a 
 basis, the Railroad Commission's department of finance and accounts 
 has prepared a uniform classification of accounts for Class B carriers. 
 A copy of this classification is 021 file in this proceeding and for the 
 purpose of identification has been marked "Commission's Exhibit B." 
 The order herein requires all carriers, unless excused by the Com- 
 mission in writing, to keep their accounts either in accordance with 
 the Interstate Commerce Commission's classification or in accordance 
 with the classification prepared by this Commission's department of 
 finance and accounts. The Connnission may, for good cause shown 
 in writing, authorize in specific instances deviations from the uniform 
 classification of accounts adopted and prescribed by the order. Any 
 violation of the order makes a carrier liable for the penalties provided 
 in the Public Utilities Act. 
 
 ORDER. 
 
 Public hearings having been held in the above entitled matter and 
 the Commission having given due consideration to the evidence sub- 
 mitted at such hearings; 
 
 It is hereby ordered and directed, that all carriers by w^ater having 
 annual operating revenues of more than $500,000 and subject to the
 
 CARRIERS BV WATER. 35 
 
 jurisdiction of the Railroad Coininission ; also all carriers l)y water 
 engaged in intrastate and interstate business and therefore subject to 
 the jurisdiction of both the Railroad Commission and the Interstate 
 Commerce Connnission, must, on and after January 1, 1923, keep their 
 accounts and records in accordance with the uniform classification of 
 accounts prescribed by the Interstate Commerce Commission, which 
 uniform classification of accounts is hereby adopted and prescribed by 
 the Railroad Commission in so far as it has jurisdiction over the 
 accounts and records of all carriers described in this paragraph. A 
 copy of said classification is on file in this proceeding and marked 
 "Commission's Exhibit A." 
 
 It is hereby further ordered and directed, that all carriers l)y water 
 whose annual operating revenues are $500,000 or less and who are 
 subject to the jurisdiction of the Railroad Commission and not to the 
 jurisdiction of the Interstate Commerce Commission, must, on and after 
 January 1, 1923, keep their accounts and records in accordance with 
 the uniform classification of accounts contained in the "Commission's 
 Exhibit B" filed in this proceeding, which classification of accounts is 
 hereby adopted and prescribed by the Railroad Commission for the 
 carriers described in this paragraph. 
 
 It is herehi) further ordered, that upon giving written notice to the 
 C'ommission and with the written approval of the Commission, any 
 carrier by water coming within Class B may keep its accounts and 
 records in accordance with the system of accounts prescribed by the 
 Interstate Commerce Commission and adopted by this Commission. 
 
 Dated at San Francisco, California, this twenty-third day of Novem- 
 ber, 1922. 
 
 H. W. Brundige, 
 Irving Martin, 
 Chester H. Rowell, 
 
 Commissioners. 
 
 74019 
 
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