of its present accounts with respect to items of expenditures for road and equip. ment as may be deemed desirable by any such carrier, or by any receiver or oper ating trustee thereof, for the purposes of such comparison; or, during the same period, may maintain such groupings of the primary accounts hereby prescribed as may be desired for that purpose.

It is further ordered, That any such carrier or any receiver or operating trustee of any such carrier may, in addition to the accounts of expenditures for road and equipment hereby prescribed, keep any temporary or experimental accounts the purpose of which is to develop economies in road and equipment construction: Provided, however, That such temporary or experimental accounts shall not impair the integrity of any general or primary account hereby prescribed; and that any such temporary or experimental accounts shall be open to inspection by the Commission. [7 It is further ordered, That July 1, 1907, be, and is hereby, fixed as the date on which said First Revised Issue shall become effective. [8

INTRODUCTORY LETTER.

To Carriers:

Interstate Commerce Commission,
Division of Statistics and Accounts,
Washington, June 3, 1907.

This Classification of Expenditures for Road and Equipment, with the text pertaining thereto, is issued in accordance with an order of the Interstate Commerce Commission, a copy of which will be found immediately preceding this letter. The rules which the Classification contains should be observed by carriers in all matters which it covers.

In 1897 the Interstate Commerce Commission issued a Classification of Construction Expenses for steam railways, and in 1905 this Classification was extended by adding to it a Classification of Equipment Expenditures. At the same time the word expenditures" was substituted for the word "expenses" in connection with construction accounts. It will be noted that the title of this First Revised Issue has been changed to "Classification of Expenditures for Road and Equipment."'

This classification, like the classification of Operating Revenues and of Operating Expenses, was revised with the co-operation of the accredited representatives of the Association of American Railway Accounting Officers, and, with the exception of the text of account No. 47, "Interest and Commissions," and of the introduction of account No. 19, "General Office Buildings and Fixtures," is, in all essential [9 particulars, promulgated in the form in which it was recommended by the Associa tion of American Railway Accounting Officers. The essential modification of the title and text of account No. 47, "Interest and Commissions," is made necessary by the adoption of the rule that all entries of values in the accounts covered by this Classification shall be in terms of cash.

The primary accounts have been grouped under three General Accounts, namely, "Road," "Equipment," and "General Expenditures.''

Henry C. Adams,

In charge of Statistics and Accounts. [10

Numbers refer to folios in brackets on right-hand side of pages, which are inserted to preserve page numbers of original issue.

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TEXT OF CLASSIFICATION OF EXPENDITURES FOR ROAD AND EQUIPMENT.

Special note covering all entries in the accounts included in this classification.— Where the consideration in the transaction shown in any entry is anything other than money, the actual consideration must be shown in the entry, and the actual cash value thereof shown in the values columns.

I. ROAD.

1. ENGINEERING.

To this account should be charged salaries and expenses of all engineers, assistants, and axmen; cost of teams for transportation of engineers and men to and from work, or upon trips of inspection of line of work, or incidental thereto; engineers' instruments, rods, chains, axes, hatchets, tapelines, keel or marking chalk, stakes, profile and drawing paper, tracing linen or paper, cross-section paper, transit and level books, cross-section or topographical books, india ink and colors, drawing boards, stools, map cases, fuel, lights, camp equipage, and other analogous items.

Note. When employees enumerated above are engaged in work not chargeable to construction their pay and expenses should be charged to the specific work on which engaged.

2. RIGHT OF WAY AND STATION GROUNDS.

To this account should be charged the cost of land acquired for roadbed (of necessary width conformable to depth and slopes of excavations and embankments, including borrow pits and waste banks adjoining right of way) and station and terminal grounds; also the cost of land purchased for ingress to or egress from station grounds; salaries and expenses of counsel, right-of-way agent, and engineers and assistants when specially engaged for such matters; cost of stakes used to denote right-of-way limits; expenses of appraisals, or of juries, commissioners, or arbitrators in condemnation cases; cost of removal of buildings (if upon right of way or station or terminal grounds, and not included in property purchased); commissions paid outside parties for purchase of properties for these purposes; cost of plats, abstracts, notarial fees, recording deeds, etc.; and payments for abutting damages.

[13

Note.-The estimated salable value of property not required in connection with the operation of the road after completion thereof, but acquired and charged to this account in connection with land needed for right of way and station grounds should, upon completion of the road, be credited to this account and charged to an approriate property account. Where such property

is sold upon or prior to the completion of the road, the proceeds of sale thereof should be credited to this account.

3. REAL ESTATE.

To this account should be charged the cost of land acquired for use directly in connection with the operation of the road, but in excess of and in addition to that actually required for roadbed or station or terminal grounds, including all expenses incurred in connection with such acquisition as enumerated in account No. 2, "Right of Way and Station Grounds.'

To this account should be charged the cost of grading roadbed, whether excavations or embankments; clearing and grubbing; dressing slopes of cuts and fills; reconstructing pikes or roads; ditching roadbed; berm ditches; cost of material taken