33. RENT OF EQUIPMENT. To this account should be charged rent, either on the basis of per diem, mileage, or at fixed rates per month, of all equipment (the cost of which is not charged to the line under construction) used in construction of new lines. 34. REPAIRS OF EQUIPMENT. To this account should be charged repairs and renewals of all equipment used in construction of new lines, not otherwise provided for. [22 35. EARNINGS AND OPERATING EXPENSES DURING CONSTRUCTION. To this account should be charged the cost of operating a piece of road while in charge of the construction department and before it is opened for commercial operation. It includes the cost of running construction, material, or other trains when the cost of operating such trains can not properly be charged to any specific account. To this account should be credited amounts collected for rents of buildings and other properties and for the transportation of commercial freight or passengers on construction, material, or other trains. To this account should be charged amounts paid for road purchased. In this connection attention is specially directed to the note at the beginning of this classification. Where payment is made by an issue of the company's securities or other commercial paper, the cash value thereof at the time of such payment should be charged. When the purchase price paid includes equipment, in addition to the road, the equipment received should be appraised and the appraised value thereof should be charged to the appropriate equipment accounts, the difference between same and the total amount paid in cash, or the cash value of securities issued in payment, being charged to this account. When contracts are entered into for the construction of a completed road for a fixed amount, whether payable in cash or in the company's securities, the amount paid in cash or the cash value of the securities issued in payment should be charged to this account. In case the contract amount includes equipment in addition to the road, the value of the equipment should be ascertained by appraisement and treated as above provided. To this account should be charged the cost of steam locomotives and tenders, including all appurtenances, furniture, and fixtures necessary to equip them for service, purchased or built at the company's shops, including cost of transportation and setting up after receipt from builders. 38. ELECTRIC LOCOMOTIVES. [23 To this account should be charged the cost of electric locomotives, including all appurtenances, furniture, and fixtures necessary to equip them for service, purchased or built at the company's shops, including cost of transportation and setting up after receipt from builders. To this account should be charged the cost of passenger-train cars of all classes, including all appurtenances, furniture, and fixtures necessary to equip them for service, purchased or built at the company's shops, including cost of transporta tion. Note. The following cars are classified as passenger-train cars: To this account should be charged the cost of freight-train cars of all classes, including all appurtenances, furniture, and fixtures necessary to equip them for service, purchased or built at the company's shops, including cost of transportation Note. The following cars are classified as freight-train cars: To this account should be charged the cost of all work equipment, including all appurtenances, furniture, and fixtures necessary to equip them for service, purchased or built at the company's shops, including cost of transportation. [24 If special grading outfits be bought by the railway company to be used in grading, the cost of such outfits when bought should be charged to account No. 4, "Grading." The proceeds from sale of these outfits, if sold after completion of grading, should be credited to that account. If, however, the outfits be retained and used, account No. 4, "Grading" should be credited with the inventory value thereof on the completion of grading, and this account should be charged therewith. Ballast, Note. The following equipment is classified as work equipment: 42. FLOATING EQUIPMENT. To this account should be charged the cost of marine or floating equipment of all kinds, including all appurtenances, furniture, and fixtures necessary to equip them for service, purchased or built at the company's shops or yards, including cost of transportation. Note. The following equipment is classified as floating equipment: To this account should be charged expenditures of the following nature, incurred during the progress of the construction of a road, namely, the pay and expenses of all counsel, solicitors, and attorneys, their clerks and attendants and expenses [25 of their offices; law books, printing briefs, legal forms, testimony, reports, etc.; fees and retainers for services of attorneys not regular employees of the company; payments to arbitrators for the settlement of disputed questions; costs of suits and payments of special fees, notarial fees, and witness fees; and expenses connected with taking depositions; also all legal and court expenses. When any of the expenses above enumerated can be charged directly to the account for which incurred, they should be so charged and not to this account. (Expenses in connection with condemnation of right of way or station and other grounds should be charged to account No. 2 "Right of Way and Station Grounds," or account No. 3 "Real Estate."') To this account should be charged cost of stationery, stationery supplies, postage, and printing blank books and forms used by all classes of employees in the prosecution of construction work not otherwise provided for. 45. INSURANCE. To this account should be charged insurance premiums paid on property of the line under construction and before the road is opened for operation. Note. Where insured property is damaged or destroyed the account to which such property was charged should be credited with the amount of insurance recovered in respect thereof. 46. TAXES. To this account should be charged State, county, township, city, school, road, and all other taxes and assessments levied and paid on property belonging to the company, while under construction and before the road is opened for commercial operation, except special taxes assessed for street and other improvements, such as grading, sewering, curbing, guttering, paving, sidewalks, etc., which should be charged to the account to which the property affected was charged. 47. INTEREST AND COMMISSIONS. To this account should be charged cash commissions and the actual cash value of other commissions on securities sold; interest, cash commissions, and the actual cash value of other commissions on loans effected and on notes issued for money borrowed for construction purposes or for purchase of equipment; interest on [26 overdue payments to contractors or other creditors; and interest, cash commissions, and the actual cash value of other commissions and exchange on other commercial paper issued for similar purposes. Interest on bonds and other securities, including equipment bonds or car trust notes, paid or accrued during construction and before line is opened for operation, is chargeable to this account. To this account should be credited all interest received on moneys acquired for purposes of purchase or construction of road or equipment. 48. OTHER EXPENDITURES. To this account should be charged organization expenses, including the payment of all necessary fees; the cost of printing certificates of stock and bonds, with payments to trustees and expenses incurred in the disposal of securities; salaries and expenses of executive and general officers of a road under construction; clerks in general offices engaged on construction accounts or work; rent and repair of general offices when rented, with the furniture and office expenses; also all items of a special and incidental nature which can not properly be charged to any other account in this classification. |