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At a General Session of the INTERSTATE COMMERCE COMMISSION, Held at its Office in Washington, D. C., on the 1st Day of June, 1908.
[Figures in brackets on right-hand side of pages indicate folios of original issue.] The subject of a Uniform System of Accounts to be prescribed for and kept by carriers being under consideration, the following order was entered:
It is ordered, That the Supplement to the Classification of Operating Revenues, First Issue, and the text pertaining thereto, prepared under the direction of this Commission by Henry C. Adams, in charge of Statistics and Accounts, and embodied in printed form to be hereafter known as Supplement to the First Issue, a copy of which is now before this Commission, be, and the same is hereby, approved; that a copy thereof duly authenticated by the Secretary of the Commission be filed in its archives, and a second copy thereof, in like manner authenticated, in the office of the Division of Statistics and Accounts; and that each of said copies so authenticated and filed shall be deemed an original record thereof.
It is further ordered, That the said Supplement to the First Issue be, and is hereby, prescribed for the use of carriers by rail (exclusive of electric railways), subject to the provisions of the act to regulate commerce as amended June 29, 1906, in the keeping and recording of their operating revenue accounts; that each [5 and every such carrier and each and every receiver or operating trustee of any such carrier be required to keep operating revenue accounts in conformity therewith; and that a copy of said Supplement to the First Issue be sent to each and every such carrier and to each and every receiver or operating trustee of any such carrier.
It is further ordered, That the rules contained in the said Supplement to the First Issue are, and, by virtue of this order, do become lawful rules according to which the said operating revenues are defined: Provided, however, That nothing in this order shall be construed as relieving any such carrier or any receiver or operating trustee of any such carrier from observing all rules contained in the Classification of Operating Revenues, First Issue, which are not changed by the rules contained in said Supplement to the First Issue.
It is further ordered, That July 1, 1908, be, and is hereby, fixed as the date on which said Supplement to the First Issue shall become effective.
To Carriers Concerned:
Interstate Commerce Commission,
The Classification of Operating Revenues prescribed by the Interstate Commerce Commission took effect on July 1, 1907.
It is found advisable to make a few changes in this classification to take effect on July 1, 1908, and it is the purpose of this Supplement to the First Issue to indicate such changes. They are not of sufficient importance to warrant at this time a revision of the classification. In this Supplement will be found, under the title of each primary account in the prescribed Classification of Operating Revenues, a statement, first, of the changes made in the text descriptive of the several accounts; and second, reference to the cases published in Accounting Bulletin No. 1, which cases should be treated as interpretations of the text, and from which many of the modifications and additions promulgated in this Supplement have been drawn. It thus appears that this Supplement will serve as an index to the cases bearing upon the interpretation of the several primary accounts, as well as authority for modifications in the text of such accounts.
An important modification of the present Classification of Operating Revenues covered by this Supplement was made necessary by the promulgation of accounting rules for outside operations. Thus, in the case of the account "Parlor and Chair Car Revenue,' attention is called to the fact that this account should be interpreted consistently with the introductory letter to the Classification of Revenues and Expenses for Outside Operations. When this Classification of Operating Rev. [7 enues was issued no rules had been provided for the assignment of expenses of the operation of parlor and chair cars; such rules have now been promulgated, and consequently the language in the text of this primary account as originally issued is no longer pertinent. A similar explanation pertains to the modification of the text descriptive of "Express Revenue."
No question has received greater attention during the past year than the treatment of switching and terminal revenues, and especial attention is called to the change in the definition of switching revenue promulgated by this Supplement.
It will be further noted that two new primary accounts, namely, "Joint Facili ties Revenue-Dr." and "Joint Facilities Revenue-Cr.,” have been added. A full explanation of these accounts and the reasons for their adoption will be found in the Agenda for the Twentieth Annual Meeting of the Association of American Railway Accounting Officers, pages 206 to 209, inclusive.
Henry C. Adams,
In charge of Statistics and Accounts. [8
I. Revenue from Transportation..
II. Revenue from Operations other than Transportation.
Other Passenger-Train Revenue..
9. Switching Revenue
10. Special Service Train Revenue..
11. Miscellaneous Transportation Revenue
II. Revenue from Operations other than Transportation—
12. Station and Train Privileges.
16. Car Service
*Numbers refer to folios in brackets on right-hand side of pages, which are inserted to preserve page numbers of original issue.
SUPPLEMENT TO THE TEXT OF CLASSIFICATION OF OPER
ATING REVENUES FOR STEAM ROADS.
I. REVENUE FROM TRANSPORTATION.
1. FREIGHT REVENUE.
Note. When a lessee company transports freight over the tracks of another carrier, it should include the entire compensation in its revenues and statisties, charging the appropriate joint facilities, expense, and rental accounts with the amounts paid to the lessor company, and the lessor company should credit the same accounts.
(For interpretation of this account see Cases 2, 4, 81, 83, 92, 94, 210, 212, 214, 215, 218, 219, 220, 265, 276, and 279, Accounting Bulletin No. 1.)
2. PASSENGER REVENUE.
(For interpretation of this account see Cases 4, 80, 84, 85, 215, 216, and 222, Accounting Bulletin No. 1.)
3. EXCESS BAGGAGE REVENUE.
Add to third line, after the words "articles, dogs, etc.," the words "incident to transportation of passengers, so that the text will read, "also packages, articles, dogs, etc., incident to transportation of passengers, usually transported, etc.'' (For interpretation of this account see Case 88, Accounting Bulletin No. 1.)
4. PARLOR AND CHAIR CAR REVENUE.
Eliminate the fourth and part of the fifth line of text, consisting of the words "the expenses of operating such cars are not separable from the expenses of operating trains," and substitute in place thereof the words "not inconsistent with the Introductory Letter to Classifications of Revenues and Expenses for Outside Operations." Eliminate the note.
(For interpretation of this account see Cases 25 and 226, Accounting Bulletin No. 1.) [10
Eliminate from the seventh line of the text the word "should" and substitute in place thereof the word "may;" also add to the end of the sentence (eighth line of text) the words "when not inconsistent with the Introductory Letter to Classifications of Revenues and Expenses for Outside Operations;" so that the sentence will read:
"When a railway company transacts an express business through its regular railway organization, the earnings therefrom may be credited to this account when not inconsistent with the Introductory Letter to Classifications of Revenues and Expenses for Outside Operations.
(For interpretation of this account see Case 119, Accounting Bulletin No. 1.) 7. MILK REVENUE (ON PASSENGER TRAINS).
(For interpretation of this account see Case 83, Accounting Bulletin No. 1.)
[SUPPLEMENT TO FIRST ISSUE.]
8. OTHER PASSENGER-TRAIN REVENUE.
Add to the text at end of third line:
"Such as revenue from transportation in baggage cars of newspapers and other commodities not incident to the transportation of passengers, extra fares charged on limited trains, etc.'
(For interpretation of this account see Cases 85, 86, 87, 88, 89, 90, 222, 227, and 261, Accounting Bulletin No. 1.)
9. SWITCHING REVENUE.
Eliminate the text of this account and substitute the following:
"This account includes amounts earned by a carrier for moving cars locally at a station or within a switching district, between connecting lines, between local industries, or between connecting lines and local industries, for which an arbitrary charge is made, whether on the basis of a switching tariff, an allowance out of a through rate, or otherwise. To it should be charged all overcharges on account of such switching."
(For interpretation of this account see Cases 4, 91, 130, 131, 191, 206, 210, 259, and 260, Accounting Bulletin No. 1.)
10. SPECIAL SERVICE TRAIN REVENUE.
(For interpretation of this account see Cases 222, 223, and 224, Accounting Bulletin No. 1.) [11
11. MISCELLANEOUS TRANSPORTATION REVENUE.
(For interpretation of this account see Cases 92, 93, 94, and 225, Accounting Bulletin No. 1.)
II. REVENUE FROM OPERATIONS OTHER THAN TRANSPORTATION. 12. STATION AND TRAIN PRIVILEGES.
(For interpretation of this account see Case 231, Accounting Bulletin No. 1.)
Change the title of this account to "Telegraph and Telephone Service," and modify the text to agree with the wording under that title below.
17. TELEGRAPH AND TELEPHONE SERVICE.
This account includes a carrier's revenues from commercial telegraph or telephone business transacted by it when the expense of transacting such business can not be separated from the expense of conducting the railway telegraph or telephone service, amounts received from telegraph or telephone companies, whether proportion of earnings or otherwise, for the privilege of transacting a commercial telegraph or telephone business in offices along the carrier's lines, when the carrier furnishes some service of its employees whose wages are included in operating expenses.
Note. When a telegraph or telephone company rents the telegraph or telephone line of a carrier and pays all expenses incident to its maintenance and operation, the rent received should be treated as income.
(For interpretation of this account see Cases 43 and 95, Accounting Bulletin No. 1.) [12