[Title 49 CFR ]
[Code of Federal Regulations (annual edition) - October 1, 1998 Edition]
[From the U.S. Government Printing Office]


          49



          Transportation



[[Page i]]

          PART 1200 TO END

                         Revised as of October 1, 1998

          CONTAINING
          A CODIFICATION OF DOCUMENTS
          OF GENERAL APPLICABILITY
          AND FUTURE EFFECT

          AS OF OCTOBER 1, 1998
          With Ancillaries
          Published by
          the Office of the Federal Register
          National Archives and Records
          Administration

          as a Special Edition of
          the Federal Register



[[Page ii]]

                                      




                     U.S. GOVERNMENT PRINTING OFFICE
                            WASHINGTON : 1998



               For sale by U.S. Government Printing Office
 Superintendent of Documents, Mail Stop: SSOP, Washington, DC 20402-9328



[[Page iii]]




                            Table of Contents



                                                                    Page
  Explanation.................................................       v

  Title 49:
    Subtitle B--Other Regulations Relating to Transportation--
      Continued:
          Chapter X--Surface Transportation Board, Department 
          of Transportation--Continued                               5
  Finding Aids:
      Table of CFR Titles and Chapters........................     243
      Alphabetical List of Agencies Appearing in the CFR......     261
      Redesignation Table.....................................     271
      List of CFR Sections Affected...........................     273



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                     ----------------------------

                     Cite this Code:  CFR
                     To cite the regulations in 
                       this volume use title, 
                       part and section number. 
                       Thus,  49 CFR 1200.1 
                       refers to title 49, part 
                       1200, section 1.

                     ----------------------------

[[Page v]]



                               EXPLANATION

    The Code of Federal Regulations is a codification of the general and 
permanent rules published in the Federal Register by the Executive 
departments and agencies of the Federal Government. The Code is divided 
into 50 titles which represent broad areas subject to Federal 
regulation. Each title is divided into chapters which usually bear the 
name of the issuing agency. Each chapter is further subdivided into 
parts covering specific regulatory areas.
    Each volume of the Code is revised at least once each calendar year 
and issued on a quarterly basis approximately as follows:

Title 1 through Title 16.................................as of January 1
Title 17 through Title 27..................................as of April 1
Title 28 through Title 41...................................as of July 1
Title 42 through Title 50................................as of October 1

    The appropriate revision date is printed on the cover of each 
volume.

LEGAL STATUS

    The contents of the Federal Register are required to be judicially 
noticed (44 U.S.C. 1507). The Code of Federal Regulations is prima facie 
evidence of the text of the original documents (44 U.S.C. 1510).

HOW TO USE THE CODE OF FEDERAL REGULATIONS

    The Code of Federal Regulations is kept up to date by the individual 
issues of the Federal Register. These two publications must be used 
together to determine the latest version of any given rule.
    To determine whether a Code volume has been amended since its 
revision date (in this case, October 1, 1998), consult the ``List of CFR 
Sections Affected (LSA),'' which is issued monthly, and the ``Cumulative 
List of Parts Affected,'' which appears in the Reader Aids section of 
the daily Federal Register. These two lists will identify the Federal 
Register page number of the latest amendment of any given rule.

EFFECTIVE AND EXPIRATION DATES

    Each volume of the Code contains amendments published in the Federal 
Register since the last revision of that volume of the Code. Source 
citations for the regulations are referred to by volume number and page 
number of the Federal Register and date of publication. Publication 
dates and effective dates are usually not the same and care must be 
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Code a note has been inserted to reflect the future effective date. In 
those instances where a regulation published in the Federal Register 
states a date certain for expiration, an appropriate note will be 
inserted following the text.

OMB CONTROL NUMBERS

    The Paperwork Reduction Act of 1980 (Pub. L. 96-511) requires 
Federal agencies to display an OMB control number with their information 
collection request.

[[Page vi]]

Many agencies have begun publishing numerous OMB control numbers as 
amendments to existing regulations in the CFR. These OMB numbers are 
placed as close as possible to the applicable recordkeeping or reporting 
requirements.

OBSOLETE PROVISIONS

    Provisions that become obsolete before the revision date stated on 
the cover of each volume are not carried. Code users may find the text 
of provisions in effect on a given date in the past by using the 
appropriate numerical list of sections affected. For the period before 
January 1, 1986, consult either the List of CFR Sections Affected, 1949-
1963, 1964-1972, or 1973-1985, published in seven separate volumes. For 
the period beginning January 1, 1986, a ``List of CFR Sections 
Affected'' is published at the end of each CFR volume.

CFR INDEXES AND TABULAR GUIDES

    A subject index to the Code of Federal Regulations is contained in a 
separate volume, revised annually as of January 1, entitled CFR Index 
and Finding Aids. This volume contains the Parallel Table of Statutory 
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    An index to the text of ``Title 3--The President'' is carried within 
that volume.
    The Federal Register Index is issued monthly in cumulative form. 
This index is based on a consolidation of the ``Contents'' entries in 
the daily Federal Register.
    A List of CFR Sections Affected (LSA) is published monthly, keyed to 
the revision dates of the 50 CFR titles.

REPUBLICATION OF MATERIAL

    There are no restrictions on the republication of material appearing 
in the Code of Federal Regulations.

INQUIRIES

    For a legal interpretation or explanation of any regulation in this 
volume, contact the issuing agency. The issuing agency's name appears at 
the top of odd-numbered pages.
    For inquiries concerning CFR reference assistance, call 202-523-5227 
or write to the Director, Office of the Federal Register, National 
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ELECTRONIC SERVICES

    The full text of the Code of Federal Regulations, The United States 
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[[Page vii]]

    The Office of the Federal Register also offers a free service on the 
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site also contains links to GPO Access.

                              Raymond A. Mosley,
                                    Director,
                          Office of the Federal Register.

October 1, 1998.



[[Page ix]]



                               THIS TITLE

    Title 49--Transportation is composed of seven volumes. The parts in 
these volumes are arranged in the following order: Parts 1-99, parts 
100-185, parts 186-199, parts 200-399, parts 400-999, parts 1000-1199, 
part 1200 to End. The first volume (parts 1-99) contains current 
regulations issued under subtitle A--Office of the Secretary of 
Transportation; the second volume (parts 100-185) and the third volume 
(parts 186-199) contain the current regulations issued under chapter I--
Research and Special Programs Administration (DOT); the fourth volume 
(parts 200-399) contains the current regulations issued under chapter 
II--Federal Railroad Administration (DOT), and chapter III--Federal 
Highway Administration (DOT); the fifth volume (parts 400-999) contains 
the current regulations issued under chapter IV--Coast Guard (DOT), 
chapter V--National Highway Traffic Safety Administration (DOT), chapter 
VI--Federal Transit Administration (DOT), chapter VII--National Railroad 
Passenger Corporation (AMTRAK), and chapter VIII--National 
Transportation Safety Board; the sixth volume (parts 1000-1199) contains 
the current regulations issued under chapter X--Surface Transportation 
Board and the seventh volume (part 1200 to End) contains the current 
regulations issued under chapter X--Surface Transportation Board and 
chapter XI--Bureau of Transportation Statistics, Department of 
Transportation. The contents of these volumes represent all current 
regulations codified under this title of the CFR as of October 1, 1998.

    In the volume containing parts 100-185, see Sec. 172.101 for the 
Hazardous Materials Table, and Sec. 172.102 for the Optional Hazardous 
Materials Table. An Identification Number Cross Reference Index to 
Proper Shipping Names in Secs. 172.101 and 172.102 appears at the 
beginning of part 172. The Federal Motor Vehicle Safety Standards appear 
in part 571.

    Redesignation tables for chapter X--Surface Transportation Board, 
Department of Transportation appear in the Finding Aids section of the 
sixth and seventh volumes.

    For this volume Ruth Reedy Green was the Chief Editor. The Code of 
Federal Regulations publication program is under the direction of 
Frances D. McDonald, assisted by Alomha S. Morris.

[[Page x]]




[[Page 1]]



                        TITLE 49--TRANSPORTATION




                  (This book contains part 1200 to end)

  --------------------------------------------------------------------
                                                                    Part

  SUBTITLE B--Other Regulations Relating to Transportation-- Continued

chapter x--Surface Transportation Board, Department of 
  Transportation (Continued)................................        1200

chapter xi--Bureau of Transportation Statistics, Department 
  of Transportation.........................................        1420

[[Page 3]]

   Subtitle B--Other Regulations Relating to Transportation--Continued

[[Page 5]]



 CHAPTER X--SURFACE TRANSPORTATION BOARD, DEPARTMENT OF TRANSPORTATION 
                               (Continued)




  --------------------------------------------------------------------

              Subchapter C--Accounts, Records, and Reports

              PARTS 1200-1219--UNIFORM SYSTEMS OF ACCOUNTS
Part                                                                Page
1200            General accounting regulations under the 
                    Interstate Commerce Act.................           7
1201            Railroad companies..........................           7
1202-1219       [Reserved]

                PARTS 1220-1239--PRESERVATION OF RECORDS
1220            Preservation of records.....................         165
                        PARTS 1240-1259--REPORTS
1241            Annual, special, or periodic reports--
                    Carriers subject to Part I of the 
                    Interstate Commerce Act.................         169
1242            Separation of common operating expenses 
                    between freight service and passenger 
                    service for railroads...................         170
1243            Quarterly operating reports--railroads......         184
1244            Waybill analysis of transportation of 
                    property--railroads.....................         184
1245            Classification of railroad employees; 
                    reports of service and compensation.....         190
1246            Number of railroad employees................         203
1248            Freight commodity statistics................         203
1250-1252       [Reserved]

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1253            Rate-making organization; records and 
                    reports.................................         209
                       PARTS 1260-1269--VALUATION
1260-1261       [Reserved]

    PARTS 1280-1299--CLASSIFICATION AND DECLASSIFICATION OF NATIONAL 
                    SECURITY INFORMATION AND MATERIAL
1280            Handling of national security information 
                    and classified material.................         210
1281-1299       [Reserved]

              Subchapter D--Carrier Rates and Service Terms

1300            Disclosure, publication, and notice of 
                    change of rates and other service terms 
                    for rail common carriage................         212
1301            [Reserved]

1302            Export and import shipments; railroads......         214
1305            Disclosure and notice of change of rates and 
                    other service terms for pipeline common 
                    carriage................................         214
1310            Tariff requirements for household goods 
                    carriers................................         216
1312            Regulations for the publication, posting and 
                    filing of tariffs for the transportation 
                    of property by or with a water carrier 
                    in noncontiguous domestic trade.........         218
1313            Railroad contracts for the transportation of 
                    agricultural products...................         224
1319            Exemptions..................................         230
1320-1324       [Reserved]

1325            Extension of credit to candidates for 
                    Federal office or their representatives.         230
1331            Applications under 49 U.S.C. 10706 and 13703         231
1332            Filing contracts for surface mail 
                    transportation..........................         232


  Editorial Note: Nomenclature changes to chapter X appear at 62 FR 
42075, Aug. 5, 1997.

[[Page 7]]



               SUBCHAPTER C--ACCOUNTS, RECORDS AND REPORTS





PARTS 1200-1219--UNIFORM SYSTEMS OF ACCOUNTS--Table of Contents






PART 1200--GENERAL ACCOUNTING REGULATIONS UNDER THE INTERSTATE COMMERCE ACT--Table of Contents




Sec.
1200.1  Financial statements released by carriers.
1200.2  Adoption of generally accepted accounting principles issued by 
          the Financial Accounting Standards Board (FASB).

    Authority: 49 U.S.C. 721, 11142, 11143, 11144, 11145.



Sec. 1200.1  Financial statements released by carriers.

    Carriers desiring to do so may prepare and publish financial 
statements in reports to stockholders and others, except in reports to 
this Board, based on generally accepted accounting principles for which 
there is authoritative support, provided that any variance from this 
Board's prescribed accounting rules contained in such statements is 
clearly disclosed in footnotes to the statements.

[32 FR 20123, Dec. 20, 1967]



Sec. 1200.2  Adoption of generally accepted accounting principles issued by the Financial Accounting Standards Board (FASB).

    (a) Accounting Series Circulars. Following the release of a 
Statement of Financial Accounting Standards by the FASB, and provided 
that the Bureau of Accounts of the Board considers such standards 
appropriate for the Board's accounting regulations, the Bureau of 
Accounts shall issue an Accounting Series Circular (ASC) requiring 
carriers under the Board's jurisdiction to follow the new standards in 
their accounts and reports filed with the Board. The Bureau shall also 
specify in the ASC the proper accounting procedures that the carriers 
shall follow.
    (b) Carriers' and Interested Parties' Comments on the ASC. The ASC 
issued by the Bureau of Accounts will remain effective until revoked by 
the Bureau of Accounts. After an ASC is issued, the Bureau of Accounts 
shall allow carriers and interested parties 45 days following the 
service date of the ASC during which the respondents may submit to the 
Bureau their comments and reasons either supporting or opposing the ASC.
    (c) Formal Adoption of the New Accounting Standards. After 
considering the comments submitted in response to the ASC, and based on 
the proposal of the Bureau of Accounts, the Board will decide whether or 
not to adopt the new accounting standards specified in the ASC by 
revising the Uniform Systems of Accounts, (49 CFR 1201 through 1210).
    (d) Accounting Standards Not Appropriate for Board's Use. The Bureau 
of Accounts may determine that a new FASB Statement of Financial 
Accounting Standards is not appropriate for use by carriers under the 
Board's jurisdiction. In such instances, the Bureau shall issue an ASC 
to advise the carriers that the new standards shall not be used in their 
reports filed with the Board. The carriers and interested parties shall 
be allowed 45 days following the ASC's service date to submit comments 
to the Board. The Board will then determine whether or not to revise the 
Uniform Systems of Accounts to conform to the new accounting standards.

[43 FR 26314, June 19, 1978]



PART 1201--RAILROAD COMPANIES--Table of Contents




                  Subpart A--Uniform System of Accounts

                    List of Instructions and Accounts

                         REGULATIONS PRESCRIBED

(i)  Regulations prescribed.
(ii)  Definitions.

                          GENERAL INSTRUCTIONS

1-1  Classification of carriers.
1-2  Classification of accounts.
1-3  Records.
1-4  Accounting period.
1-5  Accrual method of accounting.
1-6  Charges to be just and reasonable.
1-7  Changes in accounting estimates.

[[Page 8]]

1-8  Accounting for computer systems and word processing costs.
1-9  Transactions with affiliated companies.
1-10  Accounting for income taxes.
1-11  Items in texts of accounts.
1-12  Distribution of pay and expenses of employees.
1-13  Payroll related expenses.
1-14  Submission of questions.
1-15  Transfers from government authorities.
1-16  Business entertainment expenses.
1-17  Disclosure guideline.

                   INSTRUCTIONS FOR PROPERTY ACCOUNTS

2-1  Items to be charged.
2-2  Minimum rule applicable to additions to property.
2-3  Land.
2-4  Structures.
2-5  Equipment.
2-6  Components of construction cost.
2-7  Additions to and retirements of property--General.
2-8  Additions to and retirements of units of property.
2-9  Additions and retirements of other than units of property.
2-10  Additions to and retirements of track.
2-11  Expenses in connection with additions and betterments.
2-12  Units of property rebuilt or converted.
2-13  Changes in line of road and relocation of yard tracks.
2-14  Track connections.
2-15  Merger, consolidation, and purchase of a railway operating entity 
          or system.
2-16  Reorganization of railway.
2-17  Construction projects in which governmental agencies, individuals, 
          or others, and the carrier participate.
2-18  Leased property improvements and retirements.
2-19  List of units of property.
2-20  Accounting for leases.
2-21  Freight train car repair costing.
2-22  Map specifications.
2-23  Accounting for engineering costs.
2-24  Accounting for other general expenditures.

                  INSTRUCTIONS FOR MAINTENANCE EXPENSES

3-1  Items to be charged.

                 INSTRUCTIONS FOR DEPRECIATION ACCOUNTS

4-1  Method.
4-2  Rates of depreciation.
4-3  Depreciation records to be kept.
4-4  Leased property--depreciation.
4-5  Jointly used property--depreciation.

           INSTRUCTIONS FOR INCOME AND BALANCE SHEET ACCOUNTS

5-1  Current assets.
5-2  Recorded value of securities owned.
5-3  Discounts, expenses, and premiums on debt.
5-4  Discount, premium, and assessment on capital stock.
5-5  Joint liabilities.
5-6  Contingencies.
5-7  Long-term obligations.

                   INSTRUCTIONS FOR CLEARING ACCOUNTS

6-1  Items to be charged.
6-2  Material and stationery store expenses.
6-3  Shop expenses.
6-4  Gravel and sand pits and quarries.
6-5  Power plant operations.

                            PROPERTY ACCOUNTS

                                  Road

0   Road.
2   Land for transportation purposes.
3   Grading.
4   Other right-of-way expenditures.
5   Tunnels and subways.
6   Bridges, trestles, and culverts.
7   Elevated structures.
8   Ties.
9   Rails and other track material.
11  Ballast.
13  Fences, snowsheds, and signs.
16  Station and office buildings.
17  Roadway buildings.
18  Water stations.
19  Fuel stations.
20  Shops and enginehouses.
22  Storage warehouses.
23  Wharves and docks.
24  Coal and ore wharves.
25  TOFC/COFC terminals.
26  Communication systems.
27  Signals and interlockers.
29  Power plants.
31  Power-transmission systems.
35  Miscellaneous structures.
37  Roadway machines.
39  Public improvements; construction.
44  Shop machinery.
45  Power-plant machinery.

                                Equipment

50  Equipment.
52  Locomotives.
53  Freight-train cars.
54  Passenger-train cars.
55  Highway revenue equipment.
56  Floating equipment.
57  Work equipment.
58  Miscellaneous equipment.
59  Computer systems and word processing equipment.

                          General Expenditures

70  General expenditures.
76  Interest during construction.

                         Other Property Accounts

80  Other elements of investment.

[[Page 9]]

90  Construction in progress.

                   RAILWAY OPERATING REVENUE ACCOUNTS

                     Transportation Revenue Accounts

100  Transportation; rail line.
101  Freight.
102  Passenger.
103  Passenger-related.
104  Switching.
105  Water transfers.
106  Demurrage.
110  Incidental.

                     Joint Facility Revenue Accounts

120  Joint facility.
121  Joint facility--credit.
122  Joint facility--debit.

                        OPERATING EXPENSE ACCOUNT

                 Operating Expense Accounts Explanations

100000  Personnel.
110000  Salaries and wages.
120000  Fringe benefits.
200000  Materiel.
210000  Materials, tools, supplies, fuels, lubricants.
300000  Purchased services.
310000  Lease rentals--Debit.
320000  Lease rentals--Credit.
330000  Joint facility rents--Debit.
340000  Joint facility rents--Credit.
350000  Other rents--Debit.
360000  Other rents--Credit.
370000  Joint facility--Debit.
380000  Joint facility--Credit.
390000  Repairs billed by others--Debit.
400000  Repairs billed to others--Credit.
410000  Other purchased services.
500000  Claims and insurance.
510000  Loss and damage claims.
520000  Other casualties.
530000  Insurance.
600000  General.
610000  Other expenses.
620000  Depreciation.
630000  Uncollectible accounts.
640000  Property taxes.
650000  Other taxes.

                             INCOME ACCOUNTS

                             Ordinary Items

501  Railway operating revenues.
502  Railway operating revenues--transfers from government authorities 
          for current operations.
503  Railway operating revenues--amortization of deferred transfers from 
          government authorities.
506  Revenues from property used in other than carrier operations.
510  Miscellaneous rent income.
512  Separately operated properties; profit.
513  Dividend income.
514  Interest income.
516  Income from sinking and other funds.
517  Release of premiums on funded debt.
518  Reimbursement received under contracts and agreements.
519  Miscellaneous income.
531  Railway operating expenses.
534  Expenses of property used in other than carrier operations.
544  Miscellaneous taxes.
545  Separately operated properties; loss.
546  Interest on funded debt.
547  Interest on unfunded debt.
548  Amortization of discount on funded debt.
549  Maintenance of investment organization.
550  Income transferred under contracts and agreements.
551  Miscellaneous income charges.
553  Uncollectible accounts.
555  Unusual or infrequent items (debit) credit.
556  Income taxes on ordinary income.
557  Provision for deferred taxes.
560  Income or loss from operations of discontinued segments.
562  Gain or loss on disposal of discontinued segments.
570  Extraordinary items (net).
590  Income taxes on extraordinary items.
591  Provision for deferred taxes--extraordinary items.
592  Cumulative effect of changes in accounting principles.

                       RETAINED EARNINGS ACCOUNTS

                                 Credit

601  Credit balance (at beginning of calendar year).
601.5  Prior period adjustments to beginning retained earnings account.
602  Credit balance transferred from income.
603  Appropriations released.
606  Other credits to retained earnings.

                                  Debit

611  Debit balance (at beginning of calendar year).
612  Debit balance transferred from income.
616  Other debits to retained earnings.
620  Appropriations for sinking and other funds.
621  Appropriations for other purposes.
623  Dividends.

               GENERAL BALANCE SHEET ACCOUNTS EXPLANATIONS

                                 Assets

                             Current Assets

701  Cash.
702  Temporary cash investments.
703  Special deposits.
704  Loans and notes receivable.

[[Page 10]]

705  Accounts receivable; interline and other balances.
706  Accounts receivable; customers.
707  Accounts receivable; other.
708  Interest and dividends receivable.
708.5  Receivables from affiliated companies.
709  Accrued accounts receivable.
709.5  Allowance for uncollectible accounts.
710  Working funds.
711  Prepayments.
712  Material and supplies.
713  Other current assets.
714  Deferred income tax debits.

                              Special Funds

715  Sinking funds.
716  Capital funds.
717  Other funds.

                               Investments

721  Investments and advances; affiliated companies.
721.5  Adjustments; investments and advances--affiliated companies.
722  Other investments and advances.
723  Adjustments; other investments and advances.
724  Allowance for net unrealized loss on noncurrent marketable equity 
          securities--Cr.

                            Tangible Property

731  Road and equipment property.
732  Improvements on leased property.
733  Accumulated depreciation; improvements on leased property.
734  Accumulated amortization; improvements on leased property--defense 
          projects.
735  Accumulated depreciation; road and equipment property.
736  Accumulated amortization; road and equipment property--defense 
          project.
737  Property used in other than carrier operations.
738  Accumulated depreciation; property used in other than carrier 
          operations.

                           Intangible Property

739  Organization expenses.

                    Other Assets and Deferred Debits

741  Other assets.
743  Other deferred debits.
744  Accumulated deferred income tax debits.

                  Liabilities and Shareholders' Equity

                           Current Liabilities

751  Loans and notes payable.
752  Accounts payable; interline and other balances.
753  Audited accounts and wages payable.
754  Accounts payable; other.
755  Interest payable.
756  Dividends payable.
757  Payables to affiliated companies.
759  Accrued accounts payable.
760  Federal income taxes accrued.
761  State and other income taxes accrued.
761.5  Other taxes accrued.
762  Deferred income tax credits.
763  Other current liabilities.
764  Equipment obligations and other long-term debt due within one year.

                    Long-Term Debt Due After One Year

765  Funded debt unmatured.
766  Equipment obligations.
766.5  Capitalized lease obligations.
767  Receivers' and trustees' securities.
768  Debt in default.
769  Accounts payable; affiliated companies.
770.1  Unamortized debt discount.
770.2  Unamortized premium on debt.

                       Other Long-Term Liabilities

771  Accrued liability; pension and welfare.
772  Accrued liability; leased property.
774  Accrued liability; casualty and other claims.
775  Other accrued liabilities.
781  Interest in default.
782  Other liabilities.
783  Deferred revenues--transfers from government authorities.

                            Deferred Credits

784  Other deferred credits.
786  Accumulated deferred income tax credits.

                          Shareholders' Equity

791  Capital stock.
792  Capital stock to be distributed.
793  Discount on capital stock.
794  Premiums and assessments on capital stock.
795  Other capital.
797  Retained earnings; appropriated.
798  Retained earnings; unappropriated.
798.1  Net unrealized loss on noncurrent marketable securities.
798.5  Treasury stock

                            Conversion Tables

                Subpart B--Branch Line Accounting System

900  Definitions.
910  Purpose and scope.
920  Collection of data.
930  Publication of data.
940  Annual branch line report.
950  Text and chart of accounts.

Appendix I to Part 1201--Certification of Branch Line Accounting System 
          Records

    Authority: 5 U.S.C. 553 and 49 U.S.C. 11142 and 11164.

[[Page 11]]



                  Subpart A--Uniform System of Accounts

    Source: 42 FR 35017, July 7, 1977, unless otherwise noted.

                    List of Instructions and Accounts



REGULATIONS PRESCRIBED--Table of Contents




    (i) Regulations prescribed. Carriers by railroad subject to 
provisions of the Interstate Commerce Act and not independently operated 
as electric lines, and each lessor of such a carrier, shall comply with 
regulations in this part as presented hereinafter.
    (ii) Definitions.
    1. Abandonment means the withdrawal from transportation service of a 
branch line or other track segment or facility, representing a permanent 
reduction in plant.
    2. Accounts means the accounts prescribed in this system of 
accounts.
    3. Actually issued as applied to funded debt securities or capital 
stock issued or assumed by the company, means those which have been sold 
to bona fide purchasers or holders for a valuable consideration 
(including those issued in exchange for other securities or other 
property) and such purchasers or holders secured them free from control 
by the carriers. Also securities issued as dividends on stock.
    4. Actually outstanding as applied to funded debt securities or 
capital stock issued or assumed by the carrier means those which have 
been actually issued and are neither retired and canceled nor reacquired 
and held by or for the accounting company.
    5. (a) Affiliated companies means companies or persons that 
directly, or indirectly through one or more intermediaries control, or 
are controlled by, or are under common control with, the accounting 
carrier.
    (b) Control (including the terms controlling, controlled by, and 
under common control with) means the possession directly or indirectly, 
of the power to direct or cause the direction of the management and 
policies of a company, whether such power is exercised through one or 
more intermediary companies, or alone, or in conjunction with, or 
pursuant to an agreement, and whether such power is established through 
a majority of minority ownership or voting of securities, common 
directors, officers or stockholders, voting trusts, holding trusts, 
associated companies, contract or any other direct or indirect means.
    6. Amortization means the gradual extinguishment of an amount in an 
account by distributing such amount over a fixed period dependent on the 
requirements of regulatory bodies, over the life of the asset or 
liability to which it applies, or over the period during which it is 
anticipated the benefit will be realized.
    7. Carrier as used herein and when not otherwise indicated in the 
context means any carrier to which this system of accounts is 
applicable.
    8. Consolidation means the formation of a new company. See 
instruction 2-15.
    9. Board means the Surface Transportation Board.
    10. Compensating balance means the portion of any demand deposit (or 
any time deposit or certificate of deposit) maintained by a carrier (or 
by any person on behalf of the carrier) which constitutes support for 
existing borrowing arrangements of the carrier with a lending 
institution. Such arrangements include both outstanding borrowings and 
the assurance of future credit availability. (The compensating balance 
requirement should be adjusted by the amount of float unless such 
adjustment would cause the compensating balance to be greater than the 
cash balance per carrier's books.) The float adjustment is made by 
subtracting the float from the compensating balance requirement if the 
collected bank ledger balance exceeds the cash balance per carrier's 
books or by adding the float to the compensating balance requirement if 
the collected bank ledger balance is less than the cash balance per 
carrier's books.
    (a) Float means deposits and withdrawals in transit which constitute 
a difference between the collected bank ledger balance and the cash 
balance per carrier's books.
    11. Cost center refers to an organizational subdivision for which 
cost data are desired and for which provision is made to accumulate 
costs such as a terminal, yard, or track segment. A

[[Page 12]]

cost center may correspond to a given area of responsibility for which 
costs are presently accumulated for planning and control. A cost center 
is the smallest segment of activity or area of responsibility for which 
costs are accumulated and directly traceable.
    12. Cost of renewal means the cost of additional material applied 
(other than the value assigned second-hand parts remaining in the 
rebuilt unit) plus the cost of labor used in the rebuilding process, 
exclusive of the portion applicable to dismantling and repair of old 
parts reused.
    13. Cost of removal means cost of demolishing, dismantling, tearing 
down or otherwise removing property.
    14. Debt issue cost means all costs in connection with the issuance 
and sale of evidences of debt, such as fees for drafting mortgages and 
trust deeds; fees for issuing or recording evidences of debt; cost of 
engraving and printing bonds and certificates of indebtedness; fees paid 
trustees, specific costs of obtaining governmental authority; fees for 
legal services; fees and commissions paid underwriters, brokers and 
salespeople for marketing such evidences for debt; fees and costs of 
listing on exchanges; and other like costs.
    15. Discount as applied to funded debt securities or capital stock 
issued or assumed by the carrier, means the excess of the par or face 
value of the securities plus interest or dividends accrued at the date 
of the sale over the cash value of the consideration received from their 
sale.
    16. Equity security encompasses any instrument representing 
ownership shares (e.g., common, preferred and other capital stock), or 
the right to acquire (e.g., warrants, rights, and call options) or 
dispose of (e.g., put options) ownership shares in an enterprise at 
fixed or determinable prices. The term does not encompass preferred 
stock that by its terms either must be redeemed by the issuing 
enterprise or is redeemable at the option of the investor, nor does it 
include treasury stock or convertible bonds.
    (a) Marketable, as applied to an equity security, means an equity 
security as to which sales prices or bid and ask prices are currently 
available on a national securities exchange (i.e., those registered with 
the Securities and Exchange Commission) or in the over-the-counter 
market. In the over-the-counter market, an equity security shall be 
considered marketable when a quotation is publicly reported by the 
National Association of Securities Dealers Automatic Quotations System 
or by the National Quotations Bureau, Inc. (provided, in the latter 
case, that quotations are available from at least three dealers). Equity 
securities traded in foreign markets shall be considered marketable when 
such markets are of a breadth and scope comparable to those referred to 
above. This definition is not met by restricted stock (securities for 
which sale is restricted by a governmental or contractual requirement 
except where such requirement terminates within one year or where the 
holder has the power to cause the requirement to be met within one 
year). Any portion of the stock which can reasonably be expected to 
qualify for sale within one year, such as may be the case under Rule 144 
or similar rules of the Securities and Exchange Commission, is not 
considered restricted.
    (b) Market value refers to the aggregate of the market price of a 
single share or unit times the number of shares or units of each 
marketable equity security in the portfolio. When an equity has taken 
positions involving short sales, sales of calls, and purchases of puts 
for marketable equity securities and the same securities are included in 
the portfolio, those contracts shall be taken into consideration in the 
determination of market value of the marketable equity securities.
    (c) Cost, as applied to a marketable equity security, refers to the 
original cost unless a new cost basis has been assigned based on 
recognition of an impairment of value that was deemed other than 
temporary or as the result of a transfer between current and noncurrent 
classifications. In such cases, the new cost basis assigned shall be 
considered cost.
    17. (a) Income taxes means taxes based on income determined under 
provisions of the United States Internal Revenue Code and foreign, state 
and other taxes (including franchise taxes) based on income.

[[Page 13]]

    (b) Income tax expense means the amount of income taxes (whether or 
not currently payable or refundable) allocable to a period in the 
determination of net income.
    (c) Pretax accounting income means income or loss for a period, 
exclusive of related income tax expense.
    (d) Taxable income means the excess of revenues over deductions or 
the excess of deductions over revenue to be reported for income tax 
purposes for a period.
    (e) Timing differences means differences between the periods in 
which transactions affect taxable income and the periods in which they 
enter into the determination of pretax accounting income. Timing 
differences originate in one period and reverse or turn around in one or 
more subsequent periods. Some timing differences reduce income taxes 
that would otherwise be payable currently; others increase income taxes 
that would otherwise be payable currently.
    (f) Permanent differences means differences between taxable income 
and pretax accounting income arising from transactions that, under 
applicable tax laws and regulations, will not be offset by corresponding 
differences or turn around in other periods.
    (g) Tax effects means differentials in income taxes of a period 
attributable to (1) revenue or expense transactions which enter into the 
determination of pretax accounting income in one period and into the 
determination of taxable income in another period, (2) deductions or 
credits that may be carried backward or forward for income tax purposes 
and (3) adjustments of prior periods and direct entries to other 
stockholders' equity accounts which enter into the determination of 
taxable income in a period but which do not enter into the determination 
of pretax accounting income of that period. A permanent difference does 
not result in a tax effect as that term is used in this definition.
    (h) Deferred taxes means tax effects which are deferred for 
allocation to income tax expense of future periods.
    (i) Interperiod tax allocation means the process of apportioning 
income taxes among periods.
    (j) Tax allocation within a period means the process of apportioning 
income tax expenses applicable to a given period between income before 
extraordinary items and extraordinary items, and of associating the 
income tax effects of adjustments of prior periods and direct entries to 
other stockholders' equity accounts with these items.
    18. (a) Investor means a business entity that holds an investment in 
voting stock of another company.
    (b) Investee means a corporation that issued voting stock held by an 
investor.
    (c) Corporate joint venture is a company owned and operated as a 
separate and specific business or project for the mutual benefit of the 
members of the group. Joint facilities for purposes of this system of 
accounts are not considered corporate joint ventures.
    (d) Dividends when applied to distributions received from investees 
unless otherwise specified, means dividends received or receivable in 
cash, other assets, or another class of stock and does not include stock 
dividends or stock splits.
    (e) Earnings or losses of an investee and financial position of an 
investee refer to net income (or net loss) and financial position of an 
investee determined in accordance with generally accepted accounting 
principles.
    (f) Undistributed earnings of an investee means net income less 
dividends declared whether received or not.
    (g) Date of acquisition is the date on which the investor assumes 
the rights of ownership. Ordinarily, this is the date assets are 
received and other assets are given or securities issued.
    19. Joint facility means any owned or leased carrier operating 
property occupied or operated jointly by the carrier and one or more 
other carriers, under an arrangement whereby the cost and income are 
apportioned to the parties to the joint agreement. Portions of a 
structure or other property used exclusively by each of two or more 
carriers are not joint facilities.
    20. Ledger value of an account means the undepreciated or 
unamortized cost of acquisition of the item to the carrier, recorded in 
the general ledger. In case the cost of any item of property is

[[Page 14]]

not shown separately in the ledger, the ledger value of that item shall 
be its proportionate share of the value of the entire group in which the 
particular property is included.
    21. Merger means the acquisition of one company by another. See 
instruction 2-15.
    22. Minor items of property means the associated parts or items of 
which units of property are composed.
    23. Net railway operating income: Operating revenue remaining after 
deducting operating expenses, income taxes on ordinary income, and the 
provision for deferred income taxes. Also, in arriving at NROI, deduct 
the Income from Lease of Road and Equipment and add the Rent for Leased 
Road and Equipment, formerly accounts 509 and 542, respectively.
    24. Net salvage value means salvage value of property retired less 
the cost of removal.
    25. Nominally issued as applied to funded debt securities or capital 
stock issued or assumed by the carrier, means those which have been 
signed, certified by trustees, or otherwise executed, and placed with 
the proper officer for sale and delivery, or pledged, or otherwise 
placed in some special fund of the accounting company, but which have 
not been sold or issued directly to the trustees of such fund in 
accordance with contractual requirements.
    26. Nominally outstanding as applied to funded debt securities or 
capital stock issued or assumed by the carrier, means those which, after 
being actually issued, have been reacquired by or for the accounting 
company under such circumstances which require them to be considered as 
held alive and not retired and canceled.
    27. Premium as applied to funded debt securities or capital stock 
issued or assumed by the carrier, means the excess of the cash value of 
the consideration received from their sale over the sum of their par 
(stated value of no par stock) or face value and interest or dividends 
accrued at the date of sale.
    28. Programmed track replacements are costs incurred as part of a 
track replacement program or planned expenditures. Programmed track 
replacements are generally performed by relatively large work gangs 
which, on the basis of programmed and authorized work orders, use heavy 
mechanized equipment to replace rail, ties and other track material. For 
guidance on what not to capitalize, see the notes to the text of 
Accounts 8, 9 and 11.
    29. Property retired means units of property which have been 
removed, sold, abandoned, destroyed, or which for any cause have been 
permanently withdrawn from service; also minor items of property not 
replaced.
    30. Rail Transportation Property. Rail transportation property is 
all property and other assets, irrespective of ownership, that comprise 
the entire operating unit devoted to rail transportation service. This 
definition comprises the following accounts:

701  Cash
703  Special deposits
704  Loans and notes receivable
705  Accounts receivable--interline and other balances
706  Accounts receivable--customers
707   Accounts receivable--other
708.5  Receivable with affiliated companies
709  Accrued accounts receivable
710  Working funds
711  Prepayments
712  Material and supplies
713  Other current assets
714  Deferred income tax charges
731  Road and equipment property
732  Improvements on leased property

    31. Salvage value means the amount received from the sale of 
operating property retired less any expenses in connection with the sale 
or in preparing the property for sale. If the property is retained for 
reuse, the salvage value shall be recorded in account 712, Materials and 
Supplies, or other appropriate account at an amount not to exceed its 
recorded cost (actual or average), or current market value, whichever is 
lower.
    32. Segment of a business refers to a component of an entity whose 
activities represent a separate major line of business or class of 
customer. A segment may be in the form of a subsidiary, a division, or a 
department, and in some cases a joint venture or other non-subsidiary 
investee, provided that its assets, results of operations, and 
activities can be clearly distinguished, physically and operationally 
and for financial reporting purposes, from the other assets, results of 
operations, and

[[Page 15]]

activities of the entity. The fact that the results of operations of the 
segment being sold or abandoned cannot be separately identified strongly 
suggests that the transaction should not be classified as a disposal of 
a segment of business.
    (a) Measurement date means the date on which the management having 
authority to approve the action commits itself to a formal plan to 
dispose of a segment of the business, whether by abandonment or sale. 
The measurement date for disposals requiring Commission approval shall 
be the service date of the Order authorizing the disposal.
    (b) Disposal date refers to the date of closing the sale, if the 
disposal is by sale or the date that operations cease if the disposal is 
by abandonment.
    33. Service life means the period between the date when operating 
property is placed in service and the date of its retirement.
    34. Service value means the ledger value of operating property less 
its salvage value (see definition 17).
    35. Track maintenance is material and labor costs of routine track 
repairs such as sporadic tie replacement, repair of broken rails, 
tightening track bolts and track spikes. A more complete list of 
maintenance items are included in notes to the text of Accounts 8, 9 and 
11.
    36. Work equipment means equipment which can be coupled in a train 
for movement over the carrier's tracks, and which is used in the 
carrier's work service. See equipment listing for account 57, Work 
equipment.

[42 FR 35017, July 7, 1977, as amended at 44 FR 3493, Jan. 19, 1979; 45 
FR 31110, May 12, 1980; 48 FR 7183, Feb. 18, 1983; 48 FR 33718, July 25, 
1983; 49 FR 2254, Jan. 19, 1984; 52 FR 4321, Feb. 11, 1987]



GENERAL INSTRUCTIONS--Table of Contents




    1-1  Classification of carriers. (a) For purposes of accounting and 
reporting, carriers are grouped into the following three classes:
    Class I: Carriers having annual carrier operating revenues of $250 
million or more after applying the railroad revenue deflator formula 
shown in Note A.
    Class II: Carriers having annual carrier operating revenues of less 
than $250 million but in excess of $20 million after applying the 
railroad revenue deflator formula shown in Note A.
    Class III: Carriers having annual carrier operating revenues of $20 
million or less after applying the railroad revenue deflator formula 
shown in Note A.
    (b)(1) The class to which any carrier belongs shall be determined by 
annual carrier operating revenues after the railroad revenue deflator 
adjustment. Upward and downward reclassification will be effected as of 
January 1 in the year immediately following the third consecutive year 
of revenue qualification.
    (2) If a Class II or Class III carrier's classification is changed 
based on three years' adjusted revenues the carrier shall complete and 
file the Classification Index Survey Form with the Commission by March 
31 of the year following the end of the period to which it relates.
    (3) Newly organized carriers shall be classified on the basis of 
their annual carrier operating revenues after railroad revenue deflator 
adjustment for the latest period of operation. If actual data are not 
available, new carriers shall be classified on the basis of their 
carrier operating revenues known and estimated for a year (after 
railroad revenue deflator adjustment).
    (4) When a business combination occurs, such as a merger, 
reorganization, or consolidation, the surviving carrier shall be 
reclassified effective January 1 of the next calendar year on the basis 
of the combined revenue for the year when the combination occurred 
(after railroad revenue deflator adjustment).
    (5) In unusual circumstances, such as partial liquidation and 
curtailment or elimination of contracted services, where regulations 
will unduly burden the carrier, the carrier may request the Board for an 
exception to the regulations. This request shall be in writing 
specifying the conditions justifying an exception.
    (c) Class I carriers shall keep all of the accounts of this system 
which are applicable to their operations. Class II and III carriers are 
not required to maintain the accounts of this system.

[[Page 16]]

    (d) All switching and terminal companies, regardless of their 
operating revenues will be designated Class III carriers.
    (e) Unless provided for otherwise, all electric railway carriers, 
regardless of operating revenues, will be designated Class III carriers.
    Note A: The railroad revenue deflator formula is based on the 
Railroad Freight Price Index developed by the Bureau of Labor 
Statistics. The formula is as follows:

Current Year's Revenues  x  (1991 Average Index/Current Year's Average 
Index)
    Note B: See related regulations 49 CFR 1241.15 Railroad 
classification survey form.

[57 FR 27185, June 18, 1992; 57 FR 31754, July 17, 1992]

    1-2  Classification of accounts. (a) Accounts are prescribed to 
cover cost of property used in transportation operations and operations 
incidental thereto and for revenues, expenses, taxes, rents, and other 
items of income for such operations. Separate accounts are prescribed 
for investment in property not used in transportation operations and for 
other investments and income therefrom; for unusual and infrequent 
items; for operations and disposal of discontinued segments; for 
extraordinary items and accounting changes; and for assets, liabilities 
and capital includable in the balance sheet statement. Retained earnings 
accounts form the connecting link between the income account and the 
equity section of the balance sheet. They are provided to record the 
transfer of net income or loss for the year; certain capital 
transactions; and, when authorized by the Board, other items.
    (b) The cost of property, and the revenues, expenses, taxes and 
rents for miscellaneous operations involving the use of such facilities 
as hotels, restaurants, grain elevators, storage warehouses, power 
plants, cold storage plants, etc., shall not be included in the accounts 
prescribed for transportation operations unless the operation of the 
facilities is conducted by the railway companies in connection with 
furnishing transportation services. Likewise, the cost of property, the 
revenues, expenses, taxes, and rents arising from the operation of 
stockyards shall not be included in accounts prescribed for 
transportation operations unless operation of the facilities is 
conducted in connection with transportation of livestock. It is not 
intended that cost of property and income arising from incidental public 
stockyards service rendered by stockyards primarily devoted to 
transportation services shall be excluded from transportation operation 
accounts.
    (c) Joint facility accounts are provided for the joint users of 
tracks, bridges, yards, wharves, stations, and other facilities in which 
to record items in settlement for use of such facilities. When the 
compensation for the use of facilities is a fixed amount or is based 
upon a charge per passenger, ton, car or other unit, the amount shall be 
fairly apportioned by the operating company among the joint facility 
operating expense and income accounts. The creditor shall show the 
distribution of these charges upon its bills, and such distribution 
shall be adhered to by the debtor. Train service in connection with the 
line haul of traffic, including that operated under a joint arrangement 
for the benefit of two or more carriers, is not considered a joint 
facility operation.
    (d)(1) Extraordinary Items. All items of profit and loss recognized 
during the year are includable in ordinary income unless evidence 
clearly supports their classification as extraordinary items.
    Extraordinary items are characterized by both their unusual nature 
and infrequent occurrence taking into account the environment in which 
the firm operates; they must also meet the materiality standard.
    Unusual means the event or transaction must possess a high degree of 
abnormality and be of a type clearly unrelated to, or only incidentally 
related to the ordinary and typical activities of the entity.
    Infrequent occurrence means the event or transaction shall be of a 
type not reasonably expected to recur in the foreseeable future.
    (2) Unusual or Infrequent Items. Material events unusual in nature 
or infrequent in occurrence but not both, thus not meeting both criteria 
for classification as extraordinary, shall be includable in the accounts 
provided as separate components of income/expense from continuing 
operations.

[[Page 17]]

    (3) Discontinued Operations. The results of continuing operations 
shall be reported separately from discontinued operations and any gain 
or loss resulting from disposal of a segment of a business (see 
definition 23(a)) shall be reported in conjunction with the related 
results of discontinued operations and not as an extraordinary item. The 
disposal of a segment of a business shall be distinguished from other 
disposals of assets incident to the evolution of the entity's business, 
such as the disposal of part of a line of business, the shifting of 
production or marketing activities for a particular line of business 
from one location to another, the phasing out of a product line or class 
of service, and other changes occasioned by technological improvements. 
If a loss is expected from the proposed sale or abandonment of a 
segment, the estimated loss shall be provided for at the measurement 
date (see definition 23(b)). If a gain is expected, it shall be 
recognized when realized, which ordinarily is the disposal date (see 
definition 23(c)).
    (4) Prior period adjustments. Only the following two items of profit 
and loss shall be accounted for and reported as prior period adjustments 
and excluded from the determination of net income for the current 
period:
    (1) Correction of an error in the financial statements of a prior 
period, and
    (2) Adjustments that result from realization of income tax benefits 
of preacquisition operating loss carryforwards of purchased 
subsidiaries.
    With the exception of the two items just mentioned, all items of 
profit and loss recognized during a period shall be included in the 
determination of net income for that period.
    Note: The carrier shall follow generally accepted accounting 
principles where an interpretation of the rules is needed or obtain an 
interpretation from its public accountant or the Board.
    (5) Accounting Changes. Errors in financial statements result from 
mathematical mistakes, mistakes in the application of accounting 
principles, or oversight or misuse of facts that existed at the time the 
financial statements were prepared. In contrast, a change in an 
accounting estimate results from new information or subsequent 
developments and from better insight or judgment. Correction of an error 
should be accomplished through a prior period adjustment [See 
Instruction 1-2(d)(4)]. Changes in an accounting estimate should be 
accounted for in the period of change (and future period if the change 
affects both)(See Instruction 1-7). A change in an accounting principle 
or accounting entity should be referred to this Board for approval. The 
cumulative effect of a change in accounting principle should ordinarily 
be reflected in the account provided for in determining net income.
    (6) Materiality. As a general standard an item shall be considered 
material when it exceeds 10 percent of annual income (loss) before 
extraordinary items. An item may also be considered in relation to the 
trend of annual earnings before extraordinary items or other appropriate 
criteria. Items shall be considered individually and not in the 
aggregate in determining materiality. However, the effects of a series 
of related transactions arising from a single specific and identifiable 
event or plan of action shall be aggregated to determine materiality.
    (7) Board Approval and Accountant's Letter. Items shall be included 
in the accounts provided for extraordinary items, unusual or infrequent 
items, discontinued operations, prior period adjustments and cumulative 
effect of changes in accounting principles only upon approval of the 
Board. If the carrier retains the service of an independent accountant, 
a request for using these accounts shall be accompanied by a letter from 
the independent accountant approving or otherwise commenting on the 
request.
    Note: The carrier may refer to generally accepted accounting 
principles for further guidance in applying paragraph (d) above.

[42 FR 35017, July 7, 1977 as amended at 43 FR 37455, Aug. 23, 1978; 52 
FR 4321, 4324, Feb. 11, 1987]

    1-3  Records. (a) Each carrier shall keep its books of account, and 
all other books, records, and memoranda which support the entries in 
such books of account so as to be able to furnish readily full 
information as to any item included in any account. Each entry

[[Page 18]]

shall be supported by such detailed information as will permit ready 
identification, analysis, and verification of all facts relevant 
thereto.
    (b) All expenditures including the expense accounts of officers and 
employees shall be supported by vouchers, payrolls, receipted bills, 
canceled checks, receipts for petty cash payments, or other evidences of 
the expenditures incurred.
    (c) The books referred to herein include not only books of accounts 
in a limited technical sense but all other records such as minute books, 
stock books, reports, correspondence, memoranda, etc., which will be 
useful in developing the history of or facts regarding any transaction.
    (d) No carrier shall destroy any books, records, memoranda, etc., 
which support entries to its accounts unless destruction is permitted by 
the regulations governing preservation of records, Part 1220 of this 
chapter.
    (e) In addition to prescribed accounts, clearing accounts, temporary 
accounts, and subdivisions of any accounts may be kept, provided the 
integrity of the prescribed accounts is not impaired.
    (f) Cost detail shall be maintained by cost centers for purposes of 
cost assignments effective 1-1-79. This provides for cost control and 
cost planning at any designated area of responsibility. These cost 
centers shall be similarly defined as the railroads' existing 
responsibility centers. Cost center information shall therefore be kept 
at the same level of detail presently collected, categorized, and 
maintained in railroad internal managerial accounting systems. This 
detailed information shall not be reported to the Board on an ongoing 
basis. However, the carrier shall keep the detailed information to 
provide a ready analysis and verification of the costs collected by cost 
center.

[42 FR 35017, July 7, 1977, as amended at 52 FR 4324, Feb. 11, 1987; 61 
FR 9113, Mar. 7, 1996]

    1-4  Accounting period. (a) Each carrier shall keep its books on a 
monthly basis so that known transactions, as nearly as may be 
ascertained, shall be entered in the accounts not later than 60 days 
after the last day of the period for which the accounts are stated, 
except that the time within which the final entries for the year ending 
December 31 shall be made may be extended to such date in the following 
March as shall not interfere with the preparation and filing of annual 
report.
    (b) A trial balance of the general ledger accounts shall be prepared 
at the close of each month setting out the account number, title, and 
amount of each ledger account. (Mechanical, electronic or automatic data 
processing printout documentation producing the equivalent of manually 
prepared trial balances shall identify balances by account numbers.) At 
the end of the calendar year, the revenue, expense, and other income 
accounts shall be closed into retained earnings account, and the balance 
sheet account balances shall be brought forward to the general ledger 
for the succeeding year.
    (c) No changes shall be made in the accounts for periods covered by 
quarterly and annual reports that have been filed with the Board unless 
the changes have first been authorized by the Board.
    1-5  Accrual method of accounting. The accounting for operating 
revenues, operating expenses, income and other items each month and year 
shall be, as nearly as practicable, upon the basis of accruals 
consistently applied. Any change in practice of accounting for accruals 
or any unusual accruals involving material amounts shall be reported 
promptly to the Board.
    1-6  Charges to be just and reasonable. All charges to the accounts 
prescribed in this system of accounts for carrier property, operating 
revenues, operating and maintenance expenses, and other carrier 
expenses, shall be just, reasonable and not exceed amounts necessary to 
the honest and efficient operation and management of carrier business. 
Payments shall not exceed the fair market value of goods and services 
acquired in an arm's length transaction. Any payments in excess of such 
just and reasonable charges shall be included in account 551, 
Miscellaneous income charges.
    1-7  Changes in accounting estimates. Changes in accounting estimate 
arising during the current year which are applicable to prior years 
shall be included in the same account which would have

[[Page 19]]

been charged or credited if the item had been taken up or the adjustment 
made in the year to which it pertained. [See Instruction 1-2(d)(5) for 
Accounting Changes].

[42 FR 35017, July 7, 1977, as amended at 52 FR 4324, Feb. 11, 1987]

    1-8  Accounting for computer systems and word processing costs. (a) 
Capitalized costs for computer systems and word processing equipment 
shall be charged to property account 59, when such costs are not 
dedicated to a particular function (See Account 59). Related 
depreciation expenses for capitalized costs shall be charged to account 
62-23-00, Depreciation, Other Equipment.
    (b) Repair and maintenance costs related to computer systems and 
word processing equipment shall be charged to function 46 of the Other 
equipment subactivity by appropriate natural expense (labor, material, 
purchased services, other). Repairs performed by an outside company 
shall be charged to operating expense account 39-23-46.
    (c) Operating costs related to computer systems and word processing 
equipment shall be charged to function 87, Management services and data 
and word processing, when the equipment benefits more than one activity. 
When the equipment benefits one activity only, such operating costs 
shall be charged to the activity/function benefited.

[52 FR 4324, Feb. 11, 1987]

    1-9  Transactions with affiliated companies. (a) The records and 
supporting data of all transactions with affiliated companies shall be 
maintained in a separate file. The types of transactions referred to in 
this paragraph are for management services or any other type of services 
rendered, sale or use of facilities or any other type of assets or 
property. The file shall be maintained so as to enable the carrier, upon 
a Board request, to furnish accurate information with supporting 
documentation about particular transactions within 15 days of the 
request. We do not intend the file to include data relating to ordinary 
carrier operations (e.g. lawful tariff charges or interchange of 
equipment).
    (b) Each bill rendered by an affiliated company shall state 
specifically the basis used for determining charges, unless the file 
contains the information to support the specific basis for charges.
    (c) Punched cards, magnetic tapes, discs, or other machine-sensible 
devices used for recording, consolidating, and summarizing accounting 
transactions and records with a carrier's electronic or automatic data 
processing system may constitute a file within the meaning of this 
instruction.
    (d) The carrier shall record, as the cost of assets or services 
received from an affiliated supplier, the invoice price (plus any 
incidental costs related to those transactions) in those cases where the 
invoice price can be determined from a prevailing price list of the 
affiliated supplier available to the general public in the normal course 
of business. If no such price list exists, the charges shall be recorded 
at the lower of their cost to the originating affiliated supplier (less 
all applicable valuation reserves in case of asset sales, or their 
estimated fair market value determined on the basis of a representative 
study of similar competitive and arm's-length or bargained transaction. 
Any difference between actual transaction price and the above, as well 
as charges that are not transportation related, shall be considered of a 
financing nature and shall be recorded, accordingly, as nonoperating 
charges or credits. (See instruction 1-6.)
    (e) Nothing contained herein shall be construed as restraining the 
carrier from subdividing accounts (see instruction I-3(e)) for the 
purpose of recording separately transactions with affiliated companies.
    (f) Carriers reporting information on a consolidated or combined 
basis in railroad Annual Report Form R-1 shall maintain a file with 
appropriate records and supporting data. This shall include work sheets 
showing revenues, expenses, earnings, investment in assets and 
accumulated depreciation for all affiliated railroads and rail-related 
affiliated companies. The work sheets shall also disclose any 
eliminations. Carriers shall also disclose the methodology used to 
support segregation of

[[Page 20]]

rail-related or other items as appropriate. Further, a file shall be 
maintained to support and reconcile entity sales, transfers and 
reclassifications as well as taxes deducted from gains or losses.

[42 FR 35017, July 7, 1977, as amended at 53 FR 46620, Nov. 18, 1988]

    1-10  Accounting for income taxes. (a) The interperiod tax 
allocation method of accounting shall be applied where material timing 
differences (see definition 20(e)) occur between pretax accounting 
income and taxable income. Carriers may elect, as provided by the 
Revenue Act of 1971, to account for the investment tax credit by either 
the flow through method or the deferred method of accounting. See 
paragraphs (d) and (e) below. All income taxes (Federal, state and 
other) currently accruable for income tax return purposes shall be 
charged to account 556, Income taxes on ordinary income, and account 
590, Income Taxes on Extraordinary Items, as applicable.
    (b) Under the interperiod tax allocation method of accounting the 
tax effect of timing differences (see definition 20) originating in the 
current accounting period are allocated to income tax expense of future 
periods when the timing differences reverse. Similar timing differences 
originating and reversing in the current accounting period should be 
combined into groups and the current tax rates applied to determine the 
tax effect of each group. A carrier shall not apply other than current 
tax rates in determining the tax effect of reversing differences except 
upon approval of the Board. When determining the amount of deferred 
taxes, rather than computing state and other taxes individually by 
jurisdiction, the Federal income tax rate may be increased by a percent 
equivalent to the effect of taxes imposed by the jurisdictions. In 
classifying a deferred charge or credit as current or noncurrent a 
carrier shall follow the classification criteria used for the related 
asset or liability which caused the timing difference. A deferred charge 
or credit that is not related to an asset or liability because (a) there 
is no associated asset or liability or (b) reduction of an associated 
asset or liability will not cause the timing difference to reverse shall 
be classified based on the expected reversal date of the specific timing 
difference. Such classification disregards any additional timing 
differences that may arise and is based on the criteria used for 
classifying other assets and liabilities.
    (c) The future tax benefits of loss carryforwards shall normally be 
recognized in the year in which such loss is applied to reduce taxes. 
Only in those unusual instances when realization is assured beyond any 
reasonable doubt should the future tax benefits of loss carryforwards be 
recognized in the year of loss. The tax effects of any realizable loss 
carrybacks shall be recognized in the determination of net income (loss) 
of the loss periods; appropriate adjustments of existing net deferred 
tax credits may also be necessary in the loss period.
    (d) Carriers electing to account for the investment tax credit by 
the flow through method shall credit account 556 Income taxes on 
ordinary income, or account 590, Income taxes on extraordinary items, as 
applicable, and charge account 760, Federal income taxes accrued, with 
the amount of investment tax credit utilized in the current accounting 
period. When the flow through method is followed for the investment tax 
credit, account 557, Provision for Deferred Taxes, shall reflect the 
difference between the tax payable (after recognition of allowable 
investment tax credit) based on taxable income and tax expense (with 
full recognition of investment tax credit that would be allowable based 
on accounting income) based on accounting income.
    (e) Carriers electing to account for the investment tax credit by 
the deferred method shall concurrently with making the entries 
prescribed in (d) above charge account 557, Provision for deferred 
taxes, or account 591, Provision for deferred taxes--extraordinary item, 
as applicable, and shall credit account 786, Accumulated deferred income 
tax credits, with the investment tax credit utilized as a reduction of 
the current year's tax liability but deferred for accounting purposes. 
The investment tax credit so deferred shall be amortized by credits

[[Page 21]]

to account 557, Provision for deferred taxes.
    Note A: Any change in practice of accounting for the investment tax 
credit shall be reported promptly to the Board. Carriers desiring to 
clear deferred investment tax credits because of a change from the 
deferral method to the flow though method shall submit the proposed 
journal entry to the Board for consideration and advice.
    Note B: The carrier shall follow generally accepted accounting 
principles where an interpretation of the accounting rules for income 
taxes is needed or obtain an interpretation from its public accountant 
or the Board.

[42 FR 35017, July 7, 1977, as amended at 47 FR 12350, Mar. 23, 1982; 52 
FR 4321, Feb. 11, 1987]

    1-11  Items in texts of accounts. The items appearing in the texts 
of the accounts or elsewhere herein are for the purpose of more clearly 
indicating the application of the prescribed accounting. The items are 
intended to be representative, but not exhaustive. The appearance of an 
item in the text of a primary account warrants the inclusion of the item 
in the account mentioned only when the whole text also indicates 
inclusion inasmuch as the same item frequently appears in more than one 
primary account. The proper entry in each instance must be determined by 
the entire text of each primary account.
    1-12  Distribution of pay and expenses of employees. (a) The pay and 
expenses of officers or employees regularly assigned to specific duties 
who perform incidental services of a different nature involving small 
expense may be included in the appropriate expense accounts for the 
duties to which such officers or employees are regularly assigned.
    (b) When it is necessary to apportion the pay of officers and 
employees among various accounts, the carrier shall apportion the pay on 
the basis of the directly assignable pay to the various accounts.
    1-13  Payroll related expenses. (a) Fringe benefits (account series 
12-00-00) distributed to the activities using one of the following 
techniques (in order of preference):
    (1) Apply appropriate factors to the total of the fringe expense 
account, in such a way as to distribute an equitable proportion of cost 
to each activity. These factors shall be developed to take into account 
variables such as the following:
    (i) The effect of seniority on the expense. For example, profit 
sharing or pensions may be available to only certain categories of 
employees, which may be more predominant in one activity than another.
    (ii) The effect of the type of work performed. For example, 
workmen's compensation expense may vary for each category of employees 
because of the rate charged or the claims experience of the category.
    (iii) Any other variable which may have an appreciable effect on the 
equity of the apportionment.
    (2) Distribute the amount in the same proportion as the pay charged 
to each activity in account series 11-00-00 (salaries and wages).
    (3) Distribute the amounts using any other equitable basis which the 
carrier can substantiate.
    (b) All carriers shall be prepared to describe the basis of 
apportionment used to distribute expenses included in this instruction.
    (c) Any carrier which finds it impracticable to distribute expenses 
as required by this instruction should furnish the Board with full 
particulars of the conditions which prevent the proper distribution. 
Upon receipt of such information carrier will be advised of the 
procedure to be followed.
    1-14  Submission of questions. To maintain uniformity of accounting, 
carriers shall submit questions of doubtful interpretation to the Board 
for consideration and decision.
    1-15  Transfers from government authorities. When a Federal, State, 
or municipal government transfers cash or other assets to a railroad, 
the transaction shall be accounted for in accordance with the provisions 
set forth hereunder.
    (a) The following forms of government transfers shall be included in 
account 502, Railway Operating Revenues--Transfers from Government 
Authorities for Current Operations when received:
    (1) Payments as reimbursement for operating losses sustained on a 
specific line, or in a certain region. Examples

[[Page 22]]

include support of commuter operations of a railroad, and local rail 
service assistance subsidies granted to a railroad under authority of 
the Railroad Revitalization and Regulatory Reform Act of 1976;
    (2) Subsidies designated by the donor to offset operating expenses 
of the railroad, and
    (3) Subsidies which may be applied at the discretion of the 
recipient to operating expenses and/or operating property.
    (b) Government transfers relating to the acquisition, addition to, 
or improvement of depreciable operating property shall be included in 
account 783, Deferred Revenues--Transfers from Government Authorities 
when received. Account 783 shall be periodically charged, and account 
503, Railway Operating Revenues--Amortization of Deferred Transfers from 
Government Authorities shall be credited with amounts equal to the 
depreciation costs of the assets to which they apply.
    (c) Government transfers in the form of, or designated for the 
purchase of nondepreciable operating property shall be included in 
account 796, Other Capital Surplus in the manner described in the text 
of that account.
    (d)(1) Transfers from the Federal Government to Amtrak and ConRail 
relating to the acquisitions, addition to, or improvement of depreciable 
or nondepreciable operating property shall be included in account 796 in 
the manner described in the text of that account.
    (2) Transfers from the Federal Government to Amtrak and ConRail 
other than those described in paragraph (d)(1) shall be accounted for in 
accordance with paragraph (a) of this section.
    (e) The provisions of this section do not apply to the following 
forms of government transfers:
    (1) Government contributions in connection with construction 
projects in which government agencies and railroads participate. 
Transfers of this type shall be accounted for in accordance with the 
provisions of instruction 2-17. Paragraph (b) of that instruction lists 
applicable construction projects.
    (2) Government payment for specific services rendered by the carrier 
in transporting property or persons by rail line other than services 
described in paragraph (a)(1) of this section. Such payments shall be 
included in account 501, Railway Operating Revenues (Exclusive of 
Transfers from Government Authorities).
    (3) Government transfers relating to other than carrier operations.
    (4) Government transfers in exchange for debt and/or equity 
securities of recipients.
    (f) Government transfers shall generally be recorded when made 
available to the railroad. However, transfers relating to specific 
operations shall be recorded as earned.
    (g) Government transfers in the form of assets other than cash shall 
be recorded at fair value when received.

[43 FR 30558, July 17, 1978, as amended at 52 FR 4321, Feb. 11, 1987]

    1-16  Business entertainment expenses. (a) Business entertainment 
expenses are to be accounted for as operating expenses when incurred in 
conjunction with sales or marketing related activities. Sales or 
marketing related activities are those that emphasize a carrier's 
ability to provide efficient, timely and competitive service. These 
activities include outlays designed to promote new business as well as 
outlays incurred in maintaining existing business. The entertainment 
expenditures must be reasonable in relation to the business conducted 
and the business purpose for the entertainment must be adequately 
supported. Examples of this type of activity include the following:
    (1) Salespersons' salaries and travel expenses, advertising, 
promotional and educational material;
    (2) The conduct of shipper symposiums, conferences, meetings and 
traffic related functions;
    (3) The use of direct mail solicitations and the publication and 
distribution of routing guides and service directories;
    (4) Incidental promotional materials such as road atlases, 
calendars, pens, scratchpads, and other materials of nominal value;
    (5) The conduct of business oriented lunches and dinners, public 
affairs programming, conferences and customer service calls;

[[Page 23]]

    (6) Sponsoring sales promotion functions, involving a number of 
customers or potential customers.

It must be noted that an activity listed above is not to be 
automatically accounted for as an operating expense. A carrier must be 
able to justify that an activity was primarily sales or marketing 
related.
    (b) Business entertainment expenses are to be accounted for as non-
operating expenses when they cannot be shown to be related to the sales 
or marketing activity. These are expenses that are primarily related to 
recreation or to the convenience and comfort of the individuals rather 
than to the transaction of business. Examples of this type of activity 
include the following:
    (1) Recreational or resort entertainment, including but not limited 
to, fishing, hunting, tennis, golfing, skiing or other sporting or 
recreational trips or outings;
    (2) Expense paid transportation in any carrier owned, leased or 
furnished vehicles, planes, helicopters, boats, yachts, or other 
methods;
    (3) Expense paid lodging in any carrier owned, leased or furnished 
motels, hotels, apartments, condominiums, lodges, rooms and other places 
of overnight accommodation;
    (4) Paid admission to any sporting, cultural, educational, 
recreational, or entertaining occurrence or event;
    (5) Gifts such as athletic equipment, food or liquor, beverages of 
all types, smoking materials, clothing and personal accessories;
    (6) The furnishing of lunches, dinners, appetizers or beverages 
where there is no true business purpose;
    (7) Social occasions such as holiday parties.

It must be noted that an activity listed above is not to be 
automatically accounted for as a non-operating expense. If a carrier can 
justify that the activity was primarily sales or marketing related, it 
may be accounted for as an operating expense.
    Note: The examples listed above are not inclusive, but are intended 
as a guide to give carriers an indication of what will or will not be 
permitted to be recovered through the rate structure. In all instances 
the burden of proof will fall on the carrier involved.

[47 FR 9467, Mar. 5, 1982, as amended at 52 FR 4321, Feb. 11, 1987]

    1-17  Disclosure guideline. In addition to the accounting policies 
presented in these regulations, all disclosures relating to APB Opinions 
and FASB Statements adopted by the Board are required.

[52 FR 4324, Feb. 11, 1987]



INSTRUCTIONS FOR PROPERTY ACCOUNTS--Table of Contents




    2-1  Items to be charged. (a) To the road and equipment property 
accounts shall be charged the cost of purchasing land, the cost of 
purchasing and constructing buildings, facilities and equipment, and the 
cost of additions and betterments to property, Cost means the amount of 
cash disbursed, or the fair value of other assets distributed, or the 
present value of amounts to be paid. Where the fair market value of 
resources given up (assets, services or items of stockholder's equity) 
is not clearly determinable, the cost may be determined by the fair 
market value of the resources acquired. The carrier shall be prepared to 
furnish the Board with the particulars of its method of determining cash 
value when the consideration is other than monetary. The amount of 
liabilities incurred with suppliers in the normal course of business, 
which are due in customary trade terms not exceeding approximately one 
year, shall be recorded at the maturity value. Acquisition date is the 
date title passes to the carrier.
    (b) The cost of road and equipment purchased under a plan involving 
other deferred payments (debt or capital lease) shall be recorded at the 
discounted present value of the payment, net of executory costs such as 
insurance, maintenance, and taxes. The interest rate used to discount 
the payments should be the prevailing market rate for similar debt 
instruments of issues with similar credit ratings. In any event, the 
rate used for valuation purposes will normally be at least equal to the 
rate at which the carrier can obtain financing of a similar nature from 
other sources at the date of

[[Page 24]]

the transaction (the carrier's incremental borrowing rate). In the case 
of a capital lease, when it is practical to ascertain the implicit rate 
computed by the lessor, and that rate is less than the carrier's 
incremental borrowing rate, the carrier should use the implicit rate. 
Acquisition date for a capital lease is the date the lease agreement is 
signed. If the property covered by the lease has yet to be constructed 
or has not been acquired by the lessor at the date the lease agreement 
or commitment is signed, the acquisition date shall be the date the 
property under construction is completed or the date the property not 
yet acquired is acquired by the lessor. (See Instruction 2-20.)
    (c) Where actually incurred, interest cost is to be added to the 
cost of road and equipment deemed qualifying assets during the period of 
time required to get them ready for their intended use (acquisition 
period). Qualifying assets are those that are (1) either constructed or 
otherwise produced for a carrier's own use (including assets constructed 
or produced for the carrier by others for which deposits or progress 
payments have been made) or (2) assets intended for sale or lease that 
are constructed or otherwise produced as discrete projects. The amount 
of interest to be capitalized for qualifying assets shall be based upon 
the average amount of accumulated expenditures for the asset during the 
acquisition period at the rate used on specific new borrowings 
associated with the qualifying asset. If average accumulated 
expenditures for the asset exceed the amount of specific new borrowings 
associated with the asset, the rate to be applied to such excess shall 
be a weighted average of the rates applicable to other borrowings of the 
enterprise. The total amount of interest cost capitalized in an 
accounting period shall not exceed the total amount of interest cost 
incurred by the enterprise during that period.
    (d) Suitable records shall be maintained showing expenditures during 
the year for original road and equipment and road extensions; for merger 
and purchase of existing lines and reorganizations; for additions and 
betterments; and credits for property retirement.
    (e) When the carrier exchanges road and equipment for other road and 
equipment with no other consideration involved, the road and equipment 
received shall be recorded at the ledger value of the road and equipment 
relinquished. Where the carrier receives a monetary consideration in the 
exchange, the carrier shall recognize gain on the exchange to the extent 
that the consideration received exceeds a proportionate share of the 
recorded cost of the road and equipment surrendered. The portion of the 
cost applicable to the realized amount shall be based on the ratio of 
the monetary consideration to the total consideration received (monetary 
consideration plus the estimate fair value of the road and equipment 
received) or, if more clearly evident, the fair value of the road and 
equipment transferred. Where the carrier pays a monetary consideration 
in the exchange, it shall not recognize any gain on the transaction but 
shall record the road and equipment received at the amount of the 
monetary consideration paid plus the recorded costs of the road and 
equipment surrendered. If a loss is indicated by the terms of an 
exchange transaction, the carrier shall recognize the entire loss on the 
exchange. Immaterial gains and losses on these exchanges shall be 
included in account 519, Miscellaneous Income, or 551, Miscellaneous 
Income Charges, as appropriate. Material amounts shall be recorded in 
accordance with Instruction 1-2(d).

[52 FR 4324, Feb. 11, 1987]

    2-2 Minimum rule applicable to additions to property. An exception 
to the rule in Instruction 2-1 is that when the cost of acquisition of 
units of road property and of additions to existing units of road 
property (other than land and tracks) is less than $5,000, such costs 
may be charged to operating expenses. This amount (rounded to the 
nearest $100) will be adjusted by the June Producer Price Index for all 
commodities when an aggregate adjustment is $500 or more. The revision 
will be published in the Federal Register and be effective as of January 
1 of the following year. The carrier shall not

[[Page 25]]

parcel expenditures under a general plan bringing the accounting for 
such expenditures within this minimum rule. An amount of less than the 
current minimum capitalization level, for the railroad as a whole or for 
individual property accounts may be adopted for purposes of this rule 
provided the carrier first notifies the Board of the amount it proposes 
to adopt and thereafter makes no change in the amount unless authorized 
by the Board. An amount adopted shall be adhered to in reporting 
property changes for valuation purposes.

[55 FR 42016, Oct. 17, 1990]

    2-3  Land. (a) Accounts are provided for the cost of land used in 
transportation operations and also for land used in other than 
transportation operations. When land is retired from transportation 
operations but is retained by the carrier the original cost (estimated, 
if not known) shall be transferred to the account prescribed for 
property used in other than transportation operations. It is not 
contemplated that irregular parcels of land acquired in connection with 
acquisition of right-of-way which have no value as commercial property 
shall be thus transferred, either for the purpose of making right-of-way 
boundaries run more or less regular or for the purpose of eliminating 
from transportation property account the cost of unoccupied lands 
between tracks in yards and terminals. When any land, the cost of which 
is included in the accounts, is sold or otherwise retired, the ledger 
value shall be credited to the appropriate property investment account. 
The profit or loss from sale or loss from retirement or land shall be 
included in the accounts prescribed for such amounts.
    (b) [Reserved]

[42 FR 35017, July 7, 1977, as amended at 52 FR 4324, Feb. 11, 1987]

    2-4  Structures. Accounts are provided for the cost of several 
classes of buildings and facilities, including fixtures permanently 
attached to and made a part thereof. When a building or other structure 
is used or held primarily for transportation operations and is an 
integral part of the carrier's transportation plant, but a part thereof 
is used or held for commercial purposes such as for rental to others or 
for use in other than transportation operations by the carrier, the 
entire cost of the building or other structure is includable in the 
accounts for transportation property. When a building or other structure 
is used or held primarily for commercial purposes or for use in other 
than transportation operations by the carrier, the entire cost of the 
building or structure is includable in account 737, Property used in 
other than carrier operations. Reclassification of property from its 
primary classification as transportation or other than transportation 
property, as the case may be, to the other classification is not 
required where changes in use are of a temporary nature or for a short 
period of time. The accounting for costs of maintenance, taxes, other 
operating costs, and for revenues and rentals shall be consistent with 
the classification of the building or other structure.
    2-5  Equipment. Accounts are provided for several classes of 
equipment, such as locomotives, passenger-train cars, freight-train 
cars, highway revenue equipment, work equipment, floating equipment, and 
the necessary appurtenance, furniture, and fixtures first to equip for 
service, including the cost of inspection, setting up, and trying out, 
and transportation over foreign lines; also the cost of additions and 
betterments, such as improved appliances, parts, or appurtenances. When 
retired equipment is held without being torn down, the estimated value 
of the salvage therefrom shall be included in account 741, Other assets, 
until the salvage is recovered, except that the estimated scrap value of 
retired equipment held for sale in the ordinary course of business, and 
on which sale and realization of the proceeds within one year is 
assured, is includable in account 713, Other current assets.
    2-6  Components of construction cost. The cost of constructing 
property includable in the property accounts shall include the direct 
and other costs as described hereunder.
    (a) Cost of labor. This includes the amount paid for labor expended 
by the carrier's own employees, including the cost of labor expended for 
preliminary work, such as sinking test holes or

[[Page 26]]

making soundings for tunnels, grading, buildings, and other structures; 
and cost of labor expended in laying and taking up tracks for temporary 
use in construction, except the cost of labor expended on tracks 
provided for the protection of traffic during the progress of addition 
and betterment work. The cost of labor shall also include the accounting 
company's expenditures for associated fringe benefits, such as vacation 
and holiday pay, health and welfare group insurance, pensions and 
retirement plans, payroll taxes and unemployment insurance. Office 
expenses and traveling and other personal expenses of employees, when 
borne by the carrier, shall be considered a part of the cost of the 
labor, as shall also the cost of fidelity bonds and employer's liability 
insurance premiums. When officers or employees are especially assigned 
to construction work their pay and their traveling and incidental 
expenses while thus engaged shall be included in the cost of the work. 
No charge shall be made against road and equipment accounts for the pay 
of officers and employees who merely render services incidentally in 
connection with extensions, additions, or betterments, although 
traveling and incidental expenses incurred by such officers and 
employees solely on account of such work shall be included in the 
account to which the cost of the work is chargeable.
    (b) Cost of materials and supplies. This includes the purchase price 
of materials and supplies, including small tools, at the point of free 
delivery plus the cost of inspection and loading assumed by the carrier; 
a suitable proportion of store expenses; also sales and excise taxes on 
materials and supplies except as otherwise provided in the text of 
account 712, Material and supplies. In calculating the cost of materials 
used, proper allowance shall be made for the value of unused portions 
and of cuttings, turnings, borings, etc.; for the value of the material 
recovered from temporary tracks, scaffolding, cofferdams, and other 
temporary structures used in construction; and for the value of small 
tools recovered and used for other purposes.
    (c) Cost of work-train service. This includes amounts paid to others 
for rent and maintenance of equipment used; cost of labor of enginemen, 
trainmen, and enginehousemen, including wages of engine crews and train 
crews held in readiness for such service; and cost of fuel and other 
supplies consumed in connection with the operation of work trains. It 
shall also include the cost of maintaining the carrier's own equipment 
used in construction service. Amounts representing constructive rent or 
return upon the investment in owned equipment shall not be included as a 
part of the cost of work-train service.
    (d) Cost of special machine service. This includes the cost of labor 
expended and of materials and supplies consumed in maintaining and 
operating power shovels, scrapers, rail unloaders, ballast unloaders, 
pile drivers, dredges, ditchers, weed burners, and other labor-saving 
machines; also rents paid for use of such machines.
    (e) Cost of transportation. This includes the amounts paid to other 
companies or individuals for the transportation of men, materials and 
supplies, special machine outfits, appliances, and tools in connection 
with construction. Freight charges paid foreign lines for the 
transportation of construction material to the carrier's line shall be 
included, so far as practicable, as a part of the cost of the material.
    (f) Cost of contract work. This includes amounts paid for work 
performed under contract by other companies, firms, or individuals, and 
costs incident to the award of the contract.
    (g) Cost of protection from casualties. This includes expenditures 
for protection against fire, such as payments for discovery or 
extinguishment of fires, cost of detecting and prosecuting incendiaries, 
witness fees in relation thereto, amounts paid to municipal corporations 
and other for fire protection, and other analogous items of expenditure 
incurred directly in connection with construction work.
    (h) Cost of injuries and damages. This includes expenditures on 
account of injuries to persons or damage to property when incurred 
directly as a result of

[[Page 27]]

construction projects, and shall be included in the cost of the work in 
connection with which the injury or damage occurs. It also includes that 
portion of premiums paid for insuring property applicable to the period 
prior to the completion or coming into service of the property insured. 
Insurance recovered on account of compensation paid for injuries to 
persons incident to construction shall be credited to the accounts to 
which such compensation is charged, and insurance recovered on account 
of damages to property incident to construction shall be credited to the 
accounts chargeable with the expenditures necessary for restoring the 
damaged property. The cost of injuries and damages incident to the 
removal of old structures, or parts thereof, shall be charged to 
operating expenses, except that such costs in connection with the 
removal of old structures which are incumberances on newly acquired 
lands shall be included in accounts 2, Land for transportation purposes, 
or 3, Grading, as appropriate.
    (i) Cost of privileges. This includes compensation for temporary 
privileges, such as the use of public property or streets, in connection 
with the construction of the property of the carrier.
    (j) Material excavated. The cost of disposing of material excavated 
in connection with construction shall be considered as a part of the 
cost of work, except that when such material is used for filling, the 
cost of removal and dumping shall be equitably apportioned between the 
work in connection with which the removal occurs and the work in 
connection with which the material is used.
    (k) Interest cost. [See Instruction 2-1(c)].

[42 FR 35017, July 7, 1977, as amended at 52 FR 4325, Feb. 11, 1987]

    2-7  Additions to and retirements of property--General. (a) In 
accounting for additions to and retirements and replacements of road and 
equipment property (excluding land) used in transportation operations, 
such property changes shall be considered as consisting of: (1) Units of 
property, and (2) other than units of property as prescribed in 
Instruction 2-19. Track property changes will be distinguished by units 
of property as approved by the Commission.
    (b) The cost of removal of retired property, both depreciable and 
other than depreciable, when borne by the carrier, shall be charged, as 
appropriate, to account 11-13-39, Personnel--Salaries and Wages--Way and 
Structures--Other--Dismantling retired property, or 11-23-39. 
Personnel--Salaries and Wages--Equipment--Other Equipment--Dismantling 
retired property, and other appropriate accounts (including 
subactivities 11 and 12). 1
---------------------------------------------------------------------------

    1 The references to solely related freight operating expense 
activity/subactivity numbers and titles used throughout the system are 
for convenience and brevity. Refer to the specific account texts to 
determine the appropriate solely related passenger and/or common expense 
activity/subactivity numbers.
---------------------------------------------------------------------------

    (c) An equitable proportion of a balance in property accounts 76, 
Interest During Construction, and 80, Other elements of investment, 
applicable to retired property shall be cleared from these accounts 
concurrently with the retirement accounting. Unless provided for 
otherwise, interest costs shall be capitalized in accordance with 
generally accepted accounting principles.
    (d) When retired property is held and not removed, the estimated 
value of the salvage therefrom shall be included in account 741, Other 
assets, until the salvage is recovered, except that the estimated scrap 
value of retired property held for sale in the ordinary course of 
business, and on which sale and realization of the proceeds within one 
year is assured, is includible in account 713, Other current assets.
    (e) The accounting for track additions and retirements (with and 
without replacement) shall be guided by Instruction 2-10.

[42 FR 35017, July 7, 1977, as amended at 46 FR 10920, Feb. 5, 1981; 48 
FR 7183, Feb. 18, 1983; 49 FR 2254, Jan. 19, 1984; 52 FR 4321, Feb. 11, 
1987]

    2-8  Additions to and retirements of units of property. (a) When a 
unit of road or equipment property is added to the plant, the cost 
thereof shall be included in the appropriate primary account. When a 
unit of property is retired, with or without replacement, the

[[Page 28]]

cost thereof shall be written out of the property account at time of 
retirement.
    (b) When a unit of road or equipment property (or a minor item not 
replaced) classified as depreciable and included in the accounts 
prescribed for depreciable property is retired the service value shall 
be charged to account 735, Accumulated depreciation; Road and equipment 
property.
    (c) When road property (other than a minor item constituting 
repairs) classified as other than depreciable property is retired, the 
cost thereof shall be cleared from the property account and the service 
value shall be charged to account 61-13-99, General--Other Expenses--Way 
and Structures--Other--Other. When the retirement requires Board 
approval, the carrier shall clear the cost from the property account 
upon the effective date of the abandonment. Subactivities 11 and 12 also 
apply.
    (d) When property included in the depreciable accounts but excluded 
from the depreciation base is retired, the service value (including 
engineering expenditures assignable to retired property but not included 
in the depreciation base) shall be charged to operating expense.
    2-9 Additions and retirements of other than units of property. (a) 
When an item of road or equipment property, other than a complete unit, 
is added to the plant and the addition is not a replacement, the cost 
thereof shall be accounted for in the same manner as an addition of a 
complete unit of property, subject to the minimum rule applicable to 
road property (see Instruction 2-2). When an item of property other than 
a complete unit (minor item) is replaced, independent of the complete 
unit of which it is a part, the cost of replacement shall be treated as 
maintenance and charged to operating expenses. If the replacement 
constitutes an improvement then the cost of replacement should be 
accounted for as a rebuilding expenditure under Instruction 2-12.
    (b) When second-hand property acquired is in such physical condition 
that it is necessary to rehabilitate the property to bring it up to the 
standard required by the carrier, the cost of such rehabilitation shall 
be included in the appropriate account for the property.

[42 FR 35017, July 7, 1977, as amended at 55 FR 42016, Oct. 17, 1990]

    2-10  Additions to and retirements of track.
    (a) When track or its components are added to the plant, the cost 
shall be included in the track primary account. When track components 
are replaced as part of a track replacement program, the replacement 
cost shall be accounted for as an addition to the track property 
account. The cost of track components which are retired with or without 
replacement shall be written out of the track property account at the 
time of retirement.
    (b) When track is retired the service value (ledger value less net 
salvage) shall be charged to account 735, Accumulated depreciation; Road 
and equipment property.
    (c) All repairs of tracks shall be accounted for as operating 
expenses.
    (d) Track investment written out of the accounts shall be at 
original cost or estimated standard or average cost for that density 
category. Material to be reused shall be put in an investment pool at 
unrecovered cost and, when reused, included in the appropriate density 
category at the average cost of the investment pool.

[48 FR 7183, Feb. 18, 1983]

    2-11  Expenses in connection with additions and betterments. The 
cost of removing old material from equipment and from buildings, 
bridges, wharves, tracks, and other fixed improvements, shall be charged 
to the appropriate operating expense accounts. Such charges shall 
include the cost of removing old foundations and filling old 
excavations, and restoring condition of grounds after addition and 
betterment work; and maintaining or protecting traffic during the 
progress of addition and betterment work, including the cost of 
constructing, maintaining, and removing temporary tracks required for 
maintaining traffic during the progress of the work.

[42 FR 35017, July 7, 1977. Redesignated at 48 FR 7183, Feb. 18, 1983]


[[Page 29]]


    2-12  Units of property rebuilt or converted--(a) Rebuilding 
expenditures. Carriers shall be governed by the following provisions 
when determining and accounting for depreciable road and equipment 
property rebuilding expenditures:
    (1) Rebuilding expenditures are those cost actually incurred which 
substantially extend the service life or substantially increase the 
utility of depreciable road and equipment property. The rebuilding 
expenditures shall be material in nature relative to the current 
replacement cost of a similar new unit of road or equipment property. 
Expenses resulting from delayed maintenance and repairs shall not be 
considered in determining materiality.
    (2) The phrase extend the service life means to extend the life of a 
property unit past its estimated service life.
    (3) The term increased utility means that the road or equipment 
property has become more useful, more efficient, more durable, or has 
greater capacity.
    (4) Rebuilt or converted road or equipment property shall be 
accounted for as an addition to the appropriate property accounts, with 
the old units accounted for as retired from service. The charge to the 
appropriate property accounts shall be composed of (i) the cost 
(estimated if necessary) less a fair allowance for depreciation, or 
salvage value, whichever is lower, of the parts reused, (ii) the cost of 
labor expended in rebuilding or in the conversion process, (iii) the 
cost of additional materials applied, and (iv) any other expenses 
incurred directly with the rebuilding or conversion. In no case shall 
the total amount charged to the property accounts for these units exceed 
the current replacement costs of similar new units that would be used 
for the same purpose. When a unit of road property or equipment is 
transferred from one class of service to another, with or without 
physical conversion, the unit shall be accounted for as retired from its 
original account and be recorded in a primary investment account 
appropriate to its new class of service.
    (5) If it is necessary to repair the secondhand or reused parts 
remaining in a rebuilt unit, the repair cost may be added to the value 
assigned parts in determining the related cost to be capitalized. 
Associated dismantling costs shall be included in operating expenses.
    (b) Repair expenses. Expenses pertaining to road and equipment 
property, which represent normal or delayed repairs and maintenance, 
shall be expensed in the year incurred.
    (c) File and Storage. Carriers shall keep records of each rebuilding 
program readily available. These records shall be provided to 
representatives of the Board when requested. The retention period shall 
be as required by 49 CFR part 1220, Preservation of Records.

[44 FR 67426, Nov. 26, 1979. Redesignated at 48 FR 7183, Feb. 18, 1983, 
and amended at 52 FR 4321, Feb. 11, 1987]

    2-13  Changes in line of road and relocation of yard tracks.
    (a) When changes are made in a line of road for the purpose of 
reducing curves or grades, or to eliminate bridges, tunnels, tracks in 
the installation of a centralized traffic control system, or other 
physical features, the part of the line so changed shall be considered 
property retired and its ledger value credited to the property accounts. 
The new line of road, including land, grading, ballast, track elements, 
and other transportation facilities serving the road shall be considered 
an addition and the cost charged to the property accounts. The cost of 
track changes which do not involve change in the existing roadbed shall 
be charged to operating expenses, even though the tracks may be 
dismantled in the process, but the resulting track extensions or 
reductions shall be accounted for as additions or retirements as 
appropriate.
    (b) The cost of shifting or rearranging tracks within a yard shall 
be charged to operating expenses, even though the tracks may be 
dismantled in the process, but resulting increases or decreases in 
grading, ballast, or track length shall be accounted for as additions or 
retirements, as appropriate. Where tracks in whole or in part within a 
yard are determined to be no longer permanently used, the ledger value 
of such tracks shall be eliminated from the property account. If yard 
tracks and facilities are constructed in another location to take

[[Page 30]]

the place of tracks retired, such tracks and facilities shall be 
accounted for as additions and the cost thereof shall be included in the 
property account.

[48 FR 7183, Feb. 18, 1983]

    2-14  Track connections. (a) When the accounting carrier bears the 
construction cost of a connecting track situated on the property of 
another carrier, but acquires the salvage rights to the track, the cost 
of the track construction shall be charged to account 731, Road and 
equipment property.
    (b) When carriers (1) share the cost of constructing a connecting 
track of which a portion is situated on each carrier's right-of-way, and 
(2) own and obtain the salvage rights to the track segment located on 
their respective properties, the construction cost borne by each carrier 
shall be charged to account 731, Road and equipment property.
    (c) The cost of constructing a track connection on the right-of-way 
of another carrier which acquires the ownership of and salvage rights to 
the track, shall be charged by the carrier bearing such cost to accounts 
37-11-00, Purchased service--Joint facility--Debit--Way and Structures--
Running, or 37-12-00, Purchased services--Joint facility--Debit--Way and 
Structures--Switching. The owner carrier shall charge the amount of the 
construction cost to account 731, Road and equipment--property, with 
contra credit to accounts 38-11-00, Purchases services--Joint facility--
Credit--Way and Structures--Running, or 38-12-00, Purchases services--
Joint facility--Credit--Way and Structures--Switching. Material amounts 
for such costs shall be referred to the Board for consideration and 
decision.
    (d) The cost of constructing a side track under a deposit refund 
agreement shall be charged to account 731, Road and equipment property. 
The deposit shall be credited to account 782, Other liabilities. Deposit 
amounts refunded during the agreement period shall be charged to account 
782, Other liabilities. Upon termination of the agreement, the amount of 
any unrefunded deposit shall be credited to the applicable primary 
property accounts on an equitable basis.
    2-15  Merger, consolidation, and purchase of a railway operating 
entity or system. (a) When a railway or portion thereof constituting an 
operating unit or system is acquired by merger or consolidation in a 
pooling of interests or by purchase the cost of acquisition represented 
by cash, capital stock or other securities issued or assumed, 
liabilities assumed, and other consideration, shall be recorded in the 
accounts in the manner stated hereunder. Separate instructions are 
provided for a merger of subsidiaries.
    (b) Pooling of interests:
    (1) When the acquisition results from a merger or consolidation 
constituting a pooling of interests, in which all or substantially all 
of the equity interest in predecessor companies continue, as such, in a 
surviving company or a new company created for the purpose, the road and 
equipment, the other assets, and the liabilities of the predecessor 
companies, together with the balances in the accumulated amortization 
and depreciation accounts and the retained earnings accounts shall be 
recorded in the appropriate balance sheet accounts at the amounts shown 
in the accounts of predecessor companies, adjusted as may be necessary 
to conform with the accounting rules of the Board. Such adjustments 
shall be included in retained earnings or the other accounts that would 
have been appropriate had the adjustments been made in the books of 
account of the predecessor company.
    (2) When the total par or the stated value of no par capital stock 
issued or outstanding pursuant to the pooling of interests is more than 
the aggregate amount of the capital stock of the separate companies 
before such pooling of interests, the excess shall be charged to account 
795, Other capital, if unrestricted capital is available for such 
purpose; otherwise, the excess shall be charged to retained earnings.
    (3) When the total par or stated value of no par capital stock 
issued or outstanding pursuant to the pooling of interests is less than 
aggregate amount of the capital stock of the separate companies before 
such pooling of interests, the difference for reduction in capital stock 
shall be credited to account 795, Other capital.
    (c) Purchase:
    (1) When the acquisition results from a purchase (except from 
subsidiaries

[[Page 31]]

controlled through ownership of the majority share of voting stock) 
including mergers or consolidations other than pooling of interests, the 
amount includible in account 731, Road and equipment property, shall be 
the cost at the date of acquisition to the purchaser of the 
transportation property acquired. The cost assigned the property, as 
well as other assets acquired, shall be the amount of the cost 
consideration given. Where property and other assets are acquired for 
other than cash, including liabilities assumed and shares of stock 
issued, cost shall be determined by either the fair value of the 
consideration given or the fair value of the assets acquired, whichever 
is more clearly evident. In addition to any liabilities assumed, 
provision shall be made for such estimated liabilities as may be 
necessary.
    (2) When the costs of individual units or classes of transportation 
property are not specified in the agreement, the cost assigned such 
property shall be apportioned among the appropriate primary accounts 
using the percentage relationship between the fair values for each class 
of property acquired and the total of such values.
    (d) Merger of subsidiaries:
    The acquisition and merger of property of subsidiaries controlled 
through ownership of the majority shares of voting stock is to be 
accounted for as a pooling of interests or as a purchase depending on 
the circumstances in each case. Where control was initially acquired 
through issuance of capital stock to stockholders of the subsidiary the 
rule applicable to pooling of interests ordinarily is applicable. Where 
control was initially acquired through purchase of stock the rule 
applicable to purchase of property may be appropriate even though the 
shares were purchased gradually from time to time over a period of 
years, in which event recognition of retained earnings since date of 
acquisition assignable to such shares may be proper. The journal entry 
pertaining to acquisition of property of subsidiaries shall be submitted 
to the Board for consideration based on the principles herein and 
procedures for which there is authoritative support, and the accounting 
for the merger shall become final only after approval by the Board.
    2-16  Reorganization of railway. (a) When a railway reorganization 
or receivership has been consummated, the assets acquired, liabilities 
assumed, and the capital stock or other securities issued or assumed, 
and other consideration, shall be recorded in the accounts in the manner 
stated hereunder. An adjustment of capitalization resulting in 
modification and reformation of classes of securities pursuant to 
voluntary action of the holders of securities but not resulting in a 
formal reorganization following a bankruptcy or other receivership 
proceedings (sometimes called a quasi-reorganization) is not covered by 
this instruction 2-16. Reduction of capital stock and other 
contributions to capital by stockholders shall be recorded in accordance 
with the instructions in the text of account 795, Other capital.
    (b) The amounts includable in primary road and equipment property 
accounts shall be recorded at cost as shown in the predecessor 
companies' accounts except as otherwise provided in paragraphs (c) and 
(d) of this instruction 2-16. The remaining assets and the liabilities 
of the predecessor companies, adjusted as necessary to conform with the 
accounting rules of the Board, together with the balances in the 
accumulated amortization and depreciation accounts, shall be recorded in 
the appropriate balance sheet accounts.
    (c) When the amount recorded for assets acquired is more than the 
par or stated value of no par capital stock issued and other 
consideration paid, including liabilities assumed, the difference shall 
be applied to such extent as necessary and is available to provide first 
for any deficiency in past accrued depreciation on property classified 
as depreciable; and, second, for any estimated loss from retirement of a 
branch line, segment of track or other important facility indicated by 
supporting records to be imminent. The remaining amount of the 
difference, if any, shall be applied proportionately to reduce the 
amounts includable in the property accounts in accordance with paragraph 
(b) of this instruction 2-16, based on the percentage relationship 
between

[[Page 32]]

such difference and the aggregate cost of the property shown in the 
predecessor companies' accounts.
    (d) When the amount applicable to the assets acquired is less than 
the par or stated value of no par capital stock issued and other 
consideration paid, including liabilities assumed, the accounting shall 
be referred to the Board for consideration and decision.
    2-17  Construction projects in which governmental agencies, 
individuals, or others, and the carrier participate. (a) The amount 
includible in the property account for construction projects in which 
the carrier and governmental agencies, individuals, or others 
participate shall be (1) the payment made by the carrier for its share 
of the cost of construction plus (2) the recorded cost (estimated if 
unknown) of property relinquished as a direct result of the arrangement 
and retired from service less the value of salvage recovered therefrom 
by the carrier and less depreciation accrued on depreciable property, 
which is part of the carrier's cost of the project. The amount so 
includable in the property account shall be distributed equitably among 
the primary accounts applicable to railway property constructed. This 
amount shall first be applied to railway facilities includable in 
accounts other than 4, Other right-of-way expenditures, or 39, Public 
improvements--Construction, then any remaining balance shall be included 
in account 4 or 39, as appropriate. In no case shall the amount included 
in the primary accounts for the railway facilities acquired exceed the 
actual cost of constructing such facilities. The property account shall 
not include any cost or value for facilities or land contributed or paid 
for by governmental agencies, individuals or others. Property acquired 
as a specific contribution to capital by stockholders does not come 
under this rule. (See text of account 795, Other capital.)
    (b) Construction projects as used in this section means widening of 
highways, construction of spillways, drainage canals, farm and other 
private passes, pipelines, drains or other facilities across the right-
of-way; construction of overhead highway bridges, and railroad bridges 
over public highways and across streams, which provide a railroad use in 
the operation of trains and a public use in the uninterrupted passage of 
highway and river traffic; installation of warning signals to protect 
highway traffic; and industrial side tracks. Also, reconstruction and 
relocation of tracks and appurtenant facilities such as occur in 
connection with carrying out flood control, reclamation, and other 
public improvement projects where it becomes necessary to abandon part 
of the line of railroad and relocate the tracks.
    2-18  Leased property improvements and retirements. The cost to 
lessee of structures, facilities, additions and betterments on leased 
property and for retirement of property the cost of which is included in 
account 732 Improvements on leased property, shall be accounted for in 
conformity with the principles in the instructions for property owned. 
When lessor's property is retired and replaced and lessee is not 
obligated to reimburse the lessor for the retired property other than 
through the replacement, the lessee shall (1) charge the cost of the 
replacement to account 732, Improvements on leased property, (2) 
discontinue accruing depreciation for lessor's retired property, and (3) 
when recording final settlement with the lessor, consider jointly the 
amount accrued in account 772, Accrued liability; Leased property, for 
lessor's retired property and the respective amounts for the replacement 
included in accounts 732, Improvements on leased property, and 733, 
Accumulated depreciation; Improvements on leased property. When lessee 
is obligated to reimburse the lessor currently or at the termination of 
the lease for property retired other than through replacement, the 
lessee shall include the amount of the obligation in the appropriate 
liability account. The lessee shall furnish the lessor such information 
as is required to enable the lessor to perform necessary accounting. The 
accounting by the lessee and the lessor shall be consistent with 
contractual arrangements.

[47 FR 26635, June 21, 1982, as amended at 52 FR 4321, Feb. 11, 1987]


[[Page 33]]


    2-19  List of units of property. (a) This list of units is 
established for the purpose of designating the units of property to be 
used in accounting for additions to and retirements and replacements of 
property. Detailed information is included in instructions 2-7 and 2-8. 
Items listed under road property accounts are subject to the minimum 
rule applicable to additions to property. See instruction 2-2 pertaining 
to the minimum rule.
    (b) This list of units will be revised from time to time as may be 
necessary to meet conditions. A carrier desiring to include in any 
account an appropriate unit not now specified therein may, upon approval 
of the Board, make such authorized addition to this list of units.
    (c) Rules applicable to units of property rebuilt or converted and 
to changes in line of road or tracks which involve accounting for units 
or property retired are set forth in instructions 2-12 and 2-13.

[42 FR 35017, July 7, 1977, as amended at 48 FR 7183, Feb. 18, 1983]

                           Account 3, Grading

    A retaining wall, riprap (hand placed), a protecting dyke, a 
protecting crib, a wing dam, a revetment, mattress, pipe or other 
structures to provide drainage. Each entire installation.

                     Account 5, Tunnels and Subways

    The entire masonry, entire timber, and entire metal lining of a 
tunnel or subway, including portals and wing walls.

Drainage. Entire installation.
Lighting. Each entire installation.
Ventilation. Each entire installation.

               Account 6, Bridges, Trestles, and Culverts

A steel superstructure.
A concrete or stone substructure.
A concrete trestle, a complete bridge or approach.
A timber trestle, a complete bridge or approach.
Complete machinery for operating a movable span.
A protecting dyke, a protecting crib (a fender), a wing dam, a complete 
culvert. Each entire installation.

                     Account 7, Elevated Structures

    Any applicable units listed under account 6, Bridges, trestles, and 
culverts.

                Account 13, Fences, Snowsheds, and Signs

A complete snowshed.
One continuous mile of right-of-way fence.
One continuous mile of permanent sand or snow fence.

                Account 16, Station and Office Buildings

A complete building, including attached platform.
A complete platform structurally detached from a building.
Each retaining wall installation.
Each timber trestle installation.
Each outside steam, water, air, etc., pipe line installation.
Each storm or sanitary sewer installation.
A complete fence.
Paving. Each complete installation.
A station stockyard. Each complete installation.
A track scale.
A track scale pit.
An outside crane or conveying system for handling freight.
A motor truck.
A motor tractor.
Any applicable units listed under other accounts.

                      Account 17, Roadway Buildings

    Any applicable units listed under account 16, Station and office 
buildings, and 44, shop machinery.

                       Account 18, Water Stations

A complete water supply piping system.
A dam or reservoir.
A pump house.
Pumping machinery. Each complete installation.
A water tank. Each complete installation.
A complete track trough at one location.
A water crane. Complete with pit.
A water treating plant.

                        Account 19, Fuel Stations

A complete fuel supply system, including appurtenances.
A pump house.
A fuel oil storage tank (large).

                   Account 20, Shops and Enginehouses

A complete building, including attached platform.
A complete platform structually detached from a building.
A turntable.
A turntable pit.
A transfer table with machinery.
A transfer table pit.
A sand storage and handling and drying apparatus.
Outdoor bins. Each complete installation.
A lorry track system (outside).

[[Page 34]]

A boiler washing plant. Each complete installation.
An overhead crane, outside.
Each outside pipe installation, steam, air, water, etc.
Each sewer installation, storm or sanitary.
Paving. Each complete installation.
Each shop fence or wall installation.
Any applicable unit under account 16, Station and office buildings.

                     Account 22, Storage Warehouses

A complete building, including attached platform.
A complete platform structurally detached from a building.
For additional items, see accounts 16 Station and office buildings, and 
44, Shop machinery.

                      Account 23, Wharves and Docks

A timber float bridge.
A steel float bridge.
A wharf (including pile clusters).
A timber incline.
A bulkhead.
Jetties or breakwater.
Ferry racks (including pile clusters).
Float racks.
Each complete machinery installation.
For additional items, see accounts 3, Grading, 6, Bridges, testles and 
culverts, and 44, Shop machinery.

                    Account 24, Coal and Ore Wharves

Car dumper complete.
Timber bridges.
Steel bridges.
Each complete machinery installation.
A loading or unloading machine complete.
Each coal or ore pocket installation.
For additional items, see accounts 6, Bridges, trestles and culverts, 
16, Station and office buildings, 20, Shops and enginehouses, 23, 
Wharves and docks, and 44, Shop machinery.

                     Account 25, TOFC/COFC Terminals

A complete building.
A complete building, including attached platform and ramp.
A complete platform and attached ramp, structurally detached from a 
building.
A portable ramp.
A complete fence.
Paving, each complete installation.
An overhead crane, complete.
Each sewer installation.
A truck or tractor used exclusively at TOFC/COFC terminals.
Each floodlighting pole or tower installation.
Each floodlighting installation.
A power distribution system, complete.
Any applicable units listed under all other accounts.

                    Account 26, Communication Systems

A complete mile section or complete installation if less than a mile of 
pole line including cross arms, wires and appurtenances.
Each mile or complete installation of cable with associated parts.
Each mile or complete installation of conduit with associated parts.
A complete tower.
A complete installation at each location constituting a separate means 
of communication, such as radio, radar, carrier telephone, teletype, or 
other communication systems.
For additional items see account 16, Station and office buildings.

                  Account 27, Signals and Interlockers

A signal system installation complete, or section thereof, with 
associated parts, including masts, batteries, relays, ladder, etc.
A complete mile section or complete installation if less than a mile, or 
pole line including cross arms, wires and appurtenances.
Each mile or complete installation if less than one mile of cable with 
associated parts.
Each mile or complete installation if less than one mile of conduit with 
associated parts.
Switch movement with associated parts.
A complete building.
An interlocking plant complete (excluding machine).
An interlocking machine.
Signal bridge complete.
Each highway crossing protection installation complete.
Each car retarder installation complete.
A traffic control or C.T.C. system installation complete.

                        Account 29, Power Plants

Any applicable units listed under accounts 16, Station and office 
buildings, and 20, Shops and enginehouses.

                 Account 31, Power Transmission Systems

A continuous mile, or a separate installation if less than a mile, of 
catenary complete including catenary hangers, trolley wire and 
appurtenances.
A continuous mile, or a separate installation if less than a mile, of 
transmission line, including poles, wires, transformers, switches, and 
other appurtenances.
Each outside steam, air, etc., pipe line installation.
A manhole.
Substation or switching station complete.
Each mile, or installation if less than a mile, of third rail.
A catenary bridge or support.

[[Page 35]]

A high-tension transmission tower.
Any applicable units listed under accounts 26, Communication systems, 
and 27, Signals and interlockers.

                  Account 35, Miscellaneous Structures

A complete building, including attached platform.
A complete platform structurally detached from a building.
A conveyor system complete.
An elevator system complete.
A blowing system complete.
Any applicable units listed under other accounts.

                      Account 37, Roadway Machines

Each roadway machine complete including accessories.
Each on and/or off-track automotive vehicle complete, including 
appurtenant special-purpose machinery.

              Account 39, Public Improvements--Construction

Any applicable units listed under other accounts.

                       Account 44, Shop Machinery

A machine (including foundation and motor, if any), such as lathes, 
shapers, slotters, boring machines.
A furnace.
A boiler installation complete.
A motor vehicle used in shops only.
Testing equipment.
Overhead crane, complete.

                    Account 45, Power Plant Machinery

A power plant machine, including foundation, such as a turbine, 
rectifier, dynamo, generator.
Any applicable unit listed under account 44, Shop machinery.

                         Account 52, Locomotives

Diesel electric, lead or booster, i.e., ``A'' or ``B'' units.
Diesel electric. Extra or spare engines.
Electric locomotive.
Radio control locomotive.

                     Account 53, Freight-Train Cars

A complete car.
Motor equipment of a motor driven car.
A propulsion motor, including generator.
A freight container, complete.

                    Account 54, Passenger-Train Cars

A complete car, including interior furnishings.
Motor equipment of a motor driven car.
A propulsion motor, including generator.

                  Account 55, Highway Revenue Equipment

A complete vehicle.
A chassis.
A container.
A bogie.

                     Account 56, Floating Equipment

A complete vessel or boat, exclusive of machinery.
Machinery: a boiler, a motor, an engine.

                       Account 57, Work Equipment

(a) Rail equipment: (1) A complete car or machine, (2) A boiler, (3) An 
engine, (4) A motor, (5) Machinery equipment (with or without tractive 
machinery) such as concrete mixer, snow plow, derrick, steam shovel, or 
pile driver, (6) A complete motor equipment.
(b) Floating equipment--Work: (1) A complete vessel or boat, (2) A 
boiler, (3) An engine, (4) A motor. Any applicable units listed under 
other accounts.

                   Account 58, Miscellaneous Equipment

An airplane.
A complete vehicle.

       Account 59, Computer Systems and Word Processing Equipment

A Mainframe
A Mini-computer
A Word processing system
A Printer
A Monitor
A Modem
A Storage device

[42 FR 35017, July 7, 1977, as amended at 52 FR 4325, Feb. 11, 1987]

    2-20  Accounting for leases. (a) Leases shall be accounted for as 
capital leases whenever the lease meets one or more of the following 
four criteria:
    (1) The lease transfers ownership of the property to the lessee by 
the end of the lease term,
    (2) The lease contains a bargain purchase option,
    (3) The lease term is equal to 75 percent or more of the estimated 
economic life of the property, and,
    (4) The present value at the beginning of the lease term of the 
minimum lease payments equals or exceeds 90 percent of the fair value of 
the leased property to the lessor at the inception of the lease less any 
related investment tax credit retained by the lessor.
    (b) If the lease does not meet any of the four criteria, the lease 
shall be classified and accounted for as an operating lease.
    (c) When accounting for capital leases the lessee shall record the 
asset

[[Page 36]]

and the related obligation. The amount recorded as the asset and the 
obligation shall be the present value at the beginning of the lease term 
of the minimum lease payments during the lease term, excluding that 
portion of the payments representing executory costs such as insurance, 
maintenance, and taxes to be paid by the lessor. However, if that amount 
exceeds the fair value of the leased property, the amount recorded as 
the asset and the obligation shall be the fair value. The lessee shall 
compute the present value of the minimum lease payments using its 
incremental borrowing rate unless (1) it is practicable to learn the 
implicit rate computed by the lessor and (2) the implicit rate computed 
by the lessor is less than the lessee's incremental borrowing rate. If 
both of those conditions are met, the lessee shall use the implicit 
rate.
    (d) Leased assets that meet the criteria for classification as a 
capital lease shall be subject to depreciation over their useful lives 
in the same manner as assets owned. If the capital lease meets the 
criteria of either Instruction 2-20(a)(1) or 2-20(a)(2), the asset shall 
be amortized in a manner consistent with the lessee's normal 
depreciation policy for owned assets. If the lease does not meet either 
of these two criteria, the asset shall be amortized in a manner 
consistent with the lessee's normal depreciation policy except that the 
period of amortization shall be the lease term.
    (e) The accounting accorded the lease shall be subject to the same 
considerations as other obligations in classifying them with current and 
noncurrent liabilities in the classified balance sheet. Leases that meet 
the criteria requiring capitalization shall be recorded in those 
accounts that provide for carrier operating property or property used in 
other than carrier operations, as appropriate. The accounts shall 
segregate the amounts pertaining to capital leases.
    (f) If the lease qualifies as an operating lease it should be 
accounted for by charging the rent to expense over the lease term. The 
rental expense should be recognized on a straight line basis over the 
lease term unless another method is more representative of the use and 
the benefits derived.
    (g) The criteria specified in paragraph (a) should be applied to all 
leases regardless of the relationship between the lessor and the lessee 
unless it is clear that the terms of the lease transaction have been 
significantly affected by their relationship. In this situation, the 
accounting should be modified to recognize economic substance rather 
than legal form.
    (h) In the case of subsidiary companies or companies under common 
control whose principal business activity is leasing property or 
facilities to the carrier, the carrier is encouraged to request special 
authority to file consolidated or combined financial statements. If the 
carrier does not wish to file consolidated or combined financial 
statements, capitalization of the lease will be required if the lease 
meets the criteria that would require capitalization.
    Note: The carrier shall follow generally accepted accounting 
principles where an interpretation of the rules for lease accounting is 
needed or obtain an interpretation from its public accountant or the 
Board.

[42 FR 56611, Oct. 27, 1977, as amended at 52 FR 4321, 4325, Feb. 11, 
1987]

    2-21  Freight train car repair costing. Class I railroads shall 
report the costs of repairing freight train cars by car types.
    (a) The accounting for freight train car repair costs shall agree 
with the applicable instructions and texts of accounts in 49 CFR Part 
1201 relating to the equipment repair process (see Note A).
    (b) Railroads may assign either actual costs, standard costs, or a 
combination of both to the accounting process. Standard costs, if used, 
shall recognize the differences in performing repairs on various types 
of equipment, and the differences related to specific repair facilites. 
Standard costs shall be based on adequate operational data which are 
reviewed at least annually. The resulting variances (price, efficiency, 
capacity, etc.) shall be reasonably allocated back to the car types to 
derive the amounts reported in Form R-1.
    (c) Railroads shall report repair costs by the freight train car 
types shown in

[[Page 37]]

Schedule 415 of Form R-1. In assigning repair costs, railroads may use 
either one of the following methodologies:

                     Level I: Job Order Cost System

    Railroads may use a job order cost system for assigning repair costs 
to the car types for freight train cars. Under this methodology, 
railroads shall directly match direct labor and materials with the 
specific unit of equipment that was repaired. Actual costs, standard 
costs, or a combination of both may be used as stated above.

             Level II: Alternative Repair Costs Methodology

    Railroads not using the job order cost system shall report freight 
train car repair costs by using the methodology described below:

    (1) The repair costs relating to heavy, program, or project repairs 
of freight train cars shall be directly assigned to the car types 
repaired by using actual or standard costs. A heavy repair is defined as 
a repair that is relatively so material in cost, repair time, or 
physical damage that management's involvement in the determination of 
the repair to be made is necessary and relatively greater than usual. 
Program or project repairs are those repairs which are performed under a 
predetermined plan where estimates costs, time periods, and car types to 
be repaired are identified.
    (2) The repair costs relating to light and running repairs of system 
cars shall be allocated to the car types by using the Association of 
American Railroads' Car Repair Billing System (CRBS) as the process for 
distributing light and running repairs. The CRBS will be the tracking 
system for recording the number of repairs, the car types and types of 
repairs. Then by applying the CRBS standard costs to the particular 
repairs, standard costs relationships by car type can be developed and 
used to distribute actual light and running repair cost pools to the car 
types.
    (3) Railroads shall match repair costs billed by and paid to foreign 
roads with the car types that were repaired. Foreign billings for light 
and running repairs are usually conducted through CRBS, and therefore, 
the car types can be identified. For heavy off-line repairs, car type 
identification is possible because system management is generally 
involved with the authorization of such heavy repairs and car 
identification numbers are generally included in the billing process.
    (4) Repair costs relating to foreign freight train cars shall also 
be reported by car types. However, a separate breakdown between foreign 
and system repair costs is not required for Board reporting purpose. Car 
type identification for light and running repairs to foreign cars can be 
obtained from CRBS tapes. The cost of heavy repairs to foreign cars 
should be accumulated by car types. The resulting expense credits from 
foreign railroads should be assigned to the car types to which they 
relate.
    (5) Railroads shall match any resulting expense credits with the car 
types to which they relate. This can occur, for example, when a railroad 
is charged with the repair costs of system cars, but the responsibility 
of the repair ultimately rests with and is paid by a foreign road.
    (d) Railroads shall submit to the Board any repair cost by car type 
methodology which does not agree with item (c) above. The Board shall 
review the methodology and determine if it is acceptable for reporting 
purposes.
    (e) Railroads may submit justification and supporting documents 
requesting waiver from provisions required by this instruction. This 
provision is intended to provide relief for those smaller Class I 
railroads that might be unduly burdened by the cost of developing and 
maintaining the required system. Waivers shall be directed to the 
Board's Accounting and Valuation Board.
    (f) Equipment repair cost records, including the allocation methods 
used, shall be maintained and made available to the Board upon request.
    Note A: The following accounts and reference pertain to the freight 
train car repair process:

11-22-42
21-22-42
39-22-42
40-22-42
41-22-42
61-22-42

Instruction 2-12, Units of property rebuilt or converted.

[46 FR 52951, Dec. 4, 1981, as amended at 52 FR 4321, 4325, Feb. 11, 
1987]


[[Page 38]]


    2-22  Map specifications.
    (a) Class I Railroad companies shall maintain current maps of its 
property and shall promptly record any changes that may take place.
    (b) Class I companies shall furnish, on request, copies of maps 
showing its property as it exists on such date or dates as may be fixed 
by the Board.
    (c) Class I companies shall maintain planimetric maps that show 
right-of-way, track and other important facilities at a scale to show 
sufficient detail.
    (d) Maps shall be indexed and titled to clearly indicate the 
specific area depicted.
    (e) All maps shall be prepared in accordance with generally accepted 
mapping practices.

[47 FR 50267, Nov. 5, 1982; 48 FR 32833, July 19, 1983]

    2-23  Accounting for engineering costs.
    (a) The pay and expenses of engineers, assistants and clerks engaged 
in the survey and construction of new lines and extensions shall be 
included in the cost of the particular property involved. This 
accounting treatment also applies in making additions to and 
improvements of the carriers road, including wharves and docks.

                     List of Officers and Employees

    Chief engineer.
    Assistant engineers.
    Bridge and signal engineer.
    Architects and draftsmen.
    Chief clerk and other clerks.
    Transitmen and levelmen.
    Rodmen and chainmen.
    Cooks and porters on business cars.

                      Items of Expense and Supplies

    Atlases and maps.
    Barometers.
    Books for office use.
    Business car service.
    Cameras; compasses.
    Camp equipage.
    Chains for surveyors.
    Drawing boards.
    Drawing instruments.
    Field glasses.
    Furniture repairs and renewals.
    Heating and lighting.
    Magnets and magnifiers.
    Official train service.
    Paper, blue-print.
    Periodicals and newspapers.
    Photographic supplies.
    Printing and stationery.
    Provisions for business cars.
    Rent and repairs of offices.
    Rods for surveyors.
    Sextants and slide rules.
    Telegraph and telephone service.
    Traveling expenses.
    Triangles and tripods.

    (b) When employees listed in (a) above are engaged in the repair and 
maintenance of the roadway, their pay and expenses shall be charged to 
the appropriate operating expense accounts.
    (c) Expenditures for tentative or preliminary surveys shall be 
carried in account 743, Other deferred debits, until it is determined 
whether or not to continue the work. If the project is continued, 
expenditures for all surveys shall be transferred to the appropriate 
property account and, if abandoned, to appropriate income accounts.
    (d) The cost of designing, making plans and specificaitons, and 
supervising the construction of equipment shall be included in the cost 
of the particular equipment.
    (e) Fees and expenses of architects specially employed for designing 
or supervising the construction of buildings shall be included in the 
accounts appropriate for the cost of the buildings constructed.

[49 FR 2254, Jan. 19, 1984, as amended at 52 FR 4321, Feb. 11, 1987]

    2-24  Accounting for other general expenditures.
    Expenditures of a general nature that are attributable but not 
directly assignable to original construction or important expansion of 
road shall be equitably assigned to the cost of specific units or 
segments of property. These expenditures include the pay and expenses of 
executive and general officers and their assistants engaged exclusively 
with such construction, law expenses (other than organization expenses), 
stationery and printing, and taxes before property is used in 
transportation operations.

[49 FR 2255, Jan. 19, 1984, as amended at 52 FR 4321, Feb. 11, 1987]



INSTRUCTIONS FOR MAINTENANCE EXPENSES--Table of Contents




    3-1  Items to be charged. (a) The accounts provided for maintenance 
of

[[Page 39]]

road property and of equipment are designed to show the cost of repairs 
and also the loss through depreciation of the property used in 
transportation operations, including expenses resulting from ordinary 
wear and tear of service, exposure to the elements, inadequacy, 
obsolesence, or other depreciation, or from accident, fire, flood, or 
other casualty.
    (b) These accounts shall include the cost of labor, materials and 
supplies, work-train service, floating equipment work service, special 
machine service, contract work, privileges, protection from casualties, 
and other analogous items of expense in connection with the maintenance 
of the plant used in railway service. The cost of materials and 
supplies, which shall include small tools, shall include the cost at the 
point of free delivery plus freight charges of foreign lines, and the 
costs of inspection and loading assumed by the carrier; also a 
proportion of store expenses. Such costs shall not include expenses of 
transportation over the carrier's line. Royalties for patent rights on 
mechanical appliances used in repairs of equipment shall be included in 
the cost of the repairs. The cost of boarding, traveling, and other 
incidental expenses of employees shall be included in the accounts to 
which the pay of the employees is chargeable, except where otherwise 
specified in the text of the accounts. In calculating the cost of 
materials used proper allowance shall be made for the value of unused 
portions and of cuttings, turnings, borings, etc., and for the value of 
the material recovered from property repaired and from temporary tracks, 
scaffolding, cofferdams, and other temporary structures used in repair 
work.
    (c) The cost of repairs shall include the cost of inspecting to 
determine the repairs necessary, and of adjusting or repairing parts, 
both of road property and of equipment, such as the repairing of 
locomotives, cars, frogs, switches, rails, etc.; the cost of inspecting 
and testing after repairs have been made such as the testing of 
locomotives after repairs to determine whether the repairs have been 
properly made, and the running of repaired locomotives light in order to 
break them in for regular service; incidental costs of repairs, such as 
the construction or removal of false work in connection with 
maintenance, cost of demolishing retired road property and disposing of 
the wreckage therefrom when the property is dismantled by or for the 
carrier; cost of maintaining or protecting traffic during the progress 
of construction work, including the cost of constructing, maintaining 
and removing temporary tracks required for maintaining traffic during 
the progress of the work; cost of mowing and beautifying grounds around 
buildings; repairing fences, sidewalks, driveways, and streets within or 
adjacent to such grounds; cost of removing snow from roofs of buildings 
(when not removed by those employed in the buildings); cost of 
periodical restorations of seasonal features, such as gardens, 
shrubbery, and lawns; cost of operating hothouses in connection with the 
work of beautifying grounds; and cost of clearing and removing casual 
incumbrances, such as ice, snow, and fallen timber.
    (d) An employee's job classification shall not govern the accounting 
for work performed. Charges to a particular expense function shall be 
based on the nature of the work performed.

[42 FR 35017, July 7, 1977, as amended at 52 FR 4325, Feb. 11, 1987]



INSTRUCTIONS FOR DEPRECIATION ACCOUNTS--Table of Contents




    4-1  Method. (a) There shall be charged monthly to operating 
expenses or other appropriate accounts and credited to account 735, 
Accumulated depreciation; Road and equipment property, during the 
service life of depreciable road and equipment property, includable in 
accounts classed as depreciable, amounts which will approximate the loss 
in service value not restored by current repairs or covered by 
insurance. The charges for accruing depreciation currently shall be 
computed in conformity with the group plan by applying to the cost of 
property such percentage rates as will distribute the service value by 
the straight-line method in equal annual charges to operating expenses 
or other accounts during the estimated life of the property. In the case 
of track accounts 8, 9 and

[[Page 40]]

11, service value shall reflect net salvage value. For road property, 
the cost shall be original cost or estimated original cost, as used in 
the valuation records, adjusted to current date. If a carrier submits 
proof that the actual cost of depreciable property is substantially 
different from cost figures in the valuation records, the carrier may, 
with the approval of the Board, use such cost figures as the 
depreciation base.
    (b) The term group plan means the plan under which depreciation 
charges are accrued upon the basis of the cost of depreciable property 
includable in accounts classed as depreciable using the service lives of 
the individual depreciable units in the accounts and properly weighing 
to determine the composite annual rate of depreciation.
    (c) For the purpose of the group plan of depreciation accounting, 
the following primary accounts are classed as depreciable accounts:

Road accounts:
    3. Grading.
    4. Other right-of-way expenditures.
    5. Tunnels and subways.
    6. Bridges, trestles and culverts.
    7. Elevated structures.
    8. Ties.
    9. Rails and other track material.
    11. Ballast.
    13. Fences, snowsheds, and signs.
    16. Station and office buildings.
    17. Roadway buildings.
    18. Water stations.
    19. Fuel stations.
    20. Shops and enginehouses.
    22. Storage warehouses.
    23. Wharves and docks.
    24. Coal and ore wharves.
    25. TOFC/COFC terminals.
    26. Communication systems.
    27. Signals and interlockers.
    29. Power plants.
    31. Power transmission systems.
    35. Miscellaneous structures.
    37. Roadway machines.
    39. Public improvements-construction.
    44. Shop machinery.
    45. Power plant machinery.
Equipment accounts:
    52. Locomotives.
    53. Freight-train cars.
    54. Passenger-train cars.
    55. Highway revenue equipment.
    56. Floating equipment.
    57. Work equipment.
    58. Miscellaneous equipment.
    59. Computer systems and word processing equipment.

    (d) When abandonment of a branch line or other important segment of 
the track structure or other part of the plant for which depreciation 
charges are not includable in the accounts as foreseeable within a 
reasonable period of time due to exhaustion of traffic, obsolescence or 
other causes, application may be made to the Board for authority to 
record a suitable provision in anticipation of a probable loss.

[42 FR 35017, July 7, 1977, as amended at 48 FR 4183, Feb. 18, 1983; 52 
FR 4325, Feb. 11, 1987]

    4-2  Rates of depreciation. (a) A separate composite annual 
percentage rate for each depreciable property account, or a subgroup in 
that account, shall be used in computing annual depreciation expenses 
and accumulated depreciation. The composite rates shall be based on the 
results of a depreciation study performed by each railroad. A 
depreciation study shall, in general, contain the following components:
    (i) Actuarial or semiactuarial methods for determining service lives 
for road and equipment properties;
    (ii) Salvage value calculations for road and equipment properties;
    (iii) Accumulated depreciation for each account or subaccount as 
appropriate;
    (iv) Other factors and related calculations involving the 
depreciation process; and
    (v) A commentary on any adjustments and judgmental factors used in 
the study.
    (b) Railroads shall submit to the Board for review and approval a 
report on depreciation studies and proposed depreciation rates every 
three years for equipment property, and every six years for road 
property. Railroads can, however, submit depreciation studies prior to 
its scheduled year, in which case a new cycle will begin.
    (c) In computing monthly depreciation charges, the annual percentage 
rates shall be applied to the depreciation base as of the first of each 
month and the results shall be divided by twelve.
    (d) Class II railroads are exempt from the three-year and six-year 
cyclical reviews, but shall submit depreciation studies when requested 
by the Board.

[[Page 41]]

Class III railroads are not required to submit depreciation studies.
    (e) A separate track depreciation rate shall apply to each primary 
property account in each track density category as provided in 
Instruction 4-3(d). Track depreciation rates shall be developed by 
estimating the average life based on an acceptable depreciation 
methodology, consistently applied, including as an option the units of 
production method based on gross ton-miles per mile of track.

[42 FR 35017, July 7, 1977, as amended at 46 FR 20210, Apr. 3, 1981; 48 
FR 7184, Feb. 18, 1983; 52 FR 4321, Feb. 11, 1987]

    4-3  Depreciation records to be kept. (a) The carrier shall maintain 
for each class of property in convenient and accessible form engineering 
and other data bearing on prospective service lives.
    (b) The carrier also shall keep such records of depreciable property 
and property retirements as will reflect the service life of each class 
of property which has been retired, or will permit the determination of 
service life indications by past experience of useful life tenure of 
comparable property, turnover, or other appropriate methods; also such 
records as will reflect the percentage of value of the salvage for 
property retired from each class of depreciable property.
    (c) For purposes of analysis the carrier shall maintain subsidiary 
records in which the accumulated depreciation account is broken down 
into component parts corresponding to each primary account to show the 
current credits and debits and the balance for each account. Such 
detailed information shall be reported annually to this Board. For 
balance sheet purposes, the accumulated depreciation account shall be 
treated as a single composite account for depreciable property.
    (d) Carriers shall be prepared to justify all track depreciation 
rates by keeping appropriate data on the service lives and salvage 
values of track components which went into the life and net salvage 
computation of each primary account in each density category.
    (e) The investment and related accumulated depreciation for accounts 
3, 4, 5, 8, 9, 11 and 39 must be maintained by distinct traffic density 
categories. Each line segment shall be identified on January 1 of each 
year as belonging to one of the following traffic density classes, based 
on the average traffic density in the preceding three years:

                                 Density

------------------------------------------------------------------------
 Class                             Description
------------------------------------------------------------------------
I  ...  Lines carrying at least 20 million gross ton-miles per mile on
         an annual basis and not designated as belonging to Density
         Class III.
II  ..  Lines carrying less than 20 million gross ton-miles per mile on
         an annual basis and not designated as belonging to Density
         Class III.
III  .  Lines identified as potentially subject to abandonment pursuant
         to Section 10904 of the Interstate Commerce Act.
IV  ..  Yard and way switching tracks.
V  ...  Electronic yards.
------------------------------------------------------------------------

    Note A: For purposes of designating line segments as belonging to 
one of the density classes, the carrier shall consider all traffic 
carried over the segment whether in the carrier's trains or in the 
trains of other carriers (estimated if not known).
    Note B: When a carrier operates systems of parallel tracks on a 
single roadbed, the density associated with the related segment of a 
rail route shall be the aggregate gross ton-miles on all individual 
tracks.

[42 FR 35017, July 7, 1977, as amended at 46 FR 20210, Apr. 3, 1981; 48 
FR 7183, Feb. 18, 1983; 52 FR 4321, Feb. 11, 1987]

    4-4  Leased property--depreciation. (a) The carrier shall include in 
operating expenses charges for depreciation on road property and 
equipment used but not owned, the rent for which is includable in the 
lease rental accounts, and shall maintain the same records of service 
lives, salvage values, etc., as provided for owned road property and 
equipment. The excess of the total compensation paid over the amount 
chargeable for depreciation shall be included in the rent account. If 
settlement between the carrier and the lessor is not currently made, the 
amount of the depreciation accrued during the period of the lease shall 
be credited by the carrier to account 772. Accrued liability; Leased 
property. The necessary adjustments of the difference between the 
balance thus accrued in that account and the actual amount of settlement 
shall be made appropriately through accounts 519, Miscellaneous income, 
or 551, Miscellaneous income

[[Page 42]]

charges, at the time settlement for depreciation on the property is made 
with the lessor.
    (b) The carrier shall not include in the depreciation account in 
operating expenses any charges for depreciation of equipment used but 
not owned when the rents therefor are not included in the lease rental 
accounts but shall include such charges in the appropriate other rent 
expense accounts.
    4-5  Jointly used property--depreciation. The owning carrier shall 
include in the depreciation accounts in operating expenses the charges 
for depreciation on units of depreciable property jointly used with one 
or more other carriers. The owning carrier shall credit and each using 
carrier shall charge the appropriate joint facility accounts in 
operating expenses with the amounts billed by the owning carrier against 
each using carrier for its proportion of the service loss on property 
retired from service whether billed currently as depreciation or when 
retirements occur as the loss in service value. The using carriers shall 
be required to account for depreciation or retirement of units of road 
property jointly used but not owned to the extent of their contract 
liability. The same principle shall apply to terminal companies and 
their nonowner tenants in accounting for depreciation accruals or 
retirement charges recorded in the accounts of the terminal companies.



INSTRUCTIONS FOR INCOME AND BALANCE SHEET ACCOUNTS--Table of Contents




    5-1  Current assets. (a) In the group of accounts designated as 
current assets shall be included cash, those assets which are readily 
convertible into cash or are held for current use in operations, current 
claims against others and amounts accruing to the carrier which are 
subject to settlement in the ordinary course of business within one 
year. There shall not be included in this group of accounts any amount 
the collection of which is not reasonably assured within one year 
because of the known financial conditions of the debtor or otherwise. 
Such items shall be included in account 741, Other assets, at an amount 
not in excess of a reasonable estimate of realizable value. Items of 
current character but of doubtful value shall be written down or written 
off by charge to account 63-61-00, General--Uncollectible accounts--
General and administrative, or account 553, Uncollectible accounts, as 
appropriate. Adjustment of these items of doubtful value shall be made 
by direct reduction of the asset account in which such items are carried 
or by provision in account 709.5, Allowance for uncollectible accounts, 
for the estimated uncollectible amount.
    (b) The carrier shall transfer the estimated realizable value of 
obsolete material to account 741, Other assets, equitably distribute the 
loss due to obsolescence among the accounts ordinarily chargeable for 
such classes of material, and concurrently credit account 712, Material 
and Supplies.
    5-2  Recorded value of securities owned. (a)(1) The investment in 
securities other than those issued or assumed by the accounting company 
shall be recorded in these accounts at cost, but excluding amounts paid 
for accrued interest and accrued dividends.
    (2) Accounts 702, Temporary Cash Investments, 721, Investments in 
Affiliated Companies, and 722, Other Investments, shall be maintained in 
such a manner as to reflect the marketable equity securities' portion 
(see definition 26) and other securities or investments.
    (3) For the purpose of determining net ledger value, the marketable 
equity securities in account 702 shall be considered the current 
portfolio and the marketable equity securities in accounts 721 and 722 
(combined) shall be considered the noncurrent portfolio. The net ledger 
value of each portfolio shall be the lower of its aggregate cost or 
market value. (See definition 26.) The amount by which aggregate cost 
exceeds market value shall be accounted for as the valuation allowance. 
Account 702, Temporary Cash Investments, shall be subdivided to include 
the valuation allowance for the marketable equity securities included 
therein. Account 724, Allowance for Net Unrealized Loss on Noncurrent 
Marketable Equity Securities--Cr., is the valuation allowance for the 
marketable equity securities recorded in account 721, Investments in 
Affiliated Companies, and

[[Page 43]]

722, Other Investments. Marketable equity securities accounted for by 
the equity method shall not be combined with other marketable equity 
securities when determining aggregate cost and market value.
    (4) Realized gains and losses (the difference between net proceeds 
from sale and cost) shall be included in the determination of net income 
of the period in which they occur. Changes in the valuation allowance 
for marketable equity securities included in account 702 shall be 
charged to account 551, Miscellaneous Income Charges, or credited to 
account 519, Miscellaneous Income, as appropriate, with a contra entry 
to the valuation allowance contained within account 702. Changes in the 
valuation allowance for marketable equity securities included in 
accounts 721 and 722 shall be recorded in equity account 798.1, Net 
Unrealized Loss on Noncurrent Marketable Equity Securities, with a 
contra entry to valuation account 724.
    (5) If there is a change in the classification of a marketable 
equity security between current and noncurrent, the security shall be 
transferred at the lower of its cost or market value at date of 
transfer. If market value is less than cost, the market value shall 
become the new cost basis, and the difference shall be accounted for as 
if it were a realized loss and included in the determination of net 
income.
    (6) The accounting company shall write down the ledger value of any 
securities to the extent of impairment in their value or write off 
entirely if there is no reasonable prospect of realizing any value 
therefrom. For long term investments in marketable equity securities, 
when the decline in market value below cost is judged to be other than 
temporary, the cost basis of the individual security shall be writen 
down to a new cost basis. The amount of the write-down shall be 
accounted for as realized loss by a charge to account 551, Other Income 
Charges, and a credit to account 723, Reserve for Adjustment of 
Investment in Securities. The new cost basis shall not be changed for 
subsequent recoveries in value.
    (b)(1) For financial statement purposes the carrier shall follow the 
principles of equity accounting for (1) all investments in corporate 
joint ventures (see definition 21(c)), and (2) all investments in voting 
stock of affiliated companies giving the carrier the ability to 
significantly influence the operating and financial policies of an 
investee (see definition 21(b)). For purposes of this instruction an 
investment of 20 percent or more of the outstanding voting stock of an 
investee will indicate the ability to exercise significant influence 
over an investee in the absence of evidence to the contrary.
    (2) Since the equity method is not to be effected by entries in the 
books of accounts but is to apply only in financial reports to the 
Board, the carrier shall establish worksheet or memorandum accounts. 
Three basic worksheet or memorandum accounts are needed:
    (i) An investment account to include (1) equity in the undistributed 
earnings or losses of the investee since the date of acquisition (see 
definition 21(g)); (2) accumulated amortization of the difference 
between cost and net assets at date of acquisition (see (b)(3) below); 
and other adjustments for disposition or writedown of investments.
    (ii) An income account to include (1) the investor's share of the 
investee's undistributed profits or losses for each reporting period 
subsequent to acquisition of the investment except that in the year of 
acquisition such amount shall be determined from the date of 
acquisition; (2) amortization for the reporting period of the difference 
between cost and net assets at date of acquisition. This account shall 
be closed at year-end to the retained earnings memorandum account 
discussed in paragraph (iii) below.
    (iii) A retained earnings account to include (1) equity in the 
undistributed earnings or losses of the investee since the date of 
acquisition; (2) accumulated amortization of the difference between cost 
and net assets acquired at date of acquisition (see (b)(3) below).
    (iv) Other memorandum accounts will be needed for such adjustments 
as gains and losses on disposition of investments, recognition of 
impairments in value, the investor's share of extraordinary and prior 
period adjustments reported in the investee's financial statements (see 
instruction 1-2(d)), and provision for deferred taxes where

[[Page 44]]

it is reasonable to assume that undistributed earnings of an investee 
will be transferred to the investor in a taxable distribution. These 
memorandum accounts shall be closed at year-end to the retained earnings 
memorandum account discussed in paragraph (iii) above.
    (3) The carrier shall retain the following information for each 
investee in support of the worksheet or memorandum accounts:
    (i) Original cost of investment.
    (ii) Equity in net assets of investee at date of acquisition.
    (iii) Allocation of difference between cost and equity in net 
assets, namely, to specific assets of investee or to goodwill.
    (iv) Accumulated amortization of difference between cost and equity 
in net assets.
    (v) Unamortized balance of difference between cost and equity in net 
assets.
    (vi) Equity in undistributed earnings/losses for each year since 
date of acquisition.
    (vii) Dividends received since date of acquisition if determinable.
    (viii) Proceeds from sale of investments.
    (4) Any difference between the investor's cost and its share of the 
net assets of the investee at date of acquisition shall be allocated to 
specific assets of the investee to the extent the difference is 
attributable to them. When the difference is allocated to depreciable or 
amortizable assets, depreciation and amortization (through the 
investment and income memorandum accounts) should absorb the difference 
over the remaining life of the related assets. If the difference is not 
related to specific accounts, it should be considered goodwill and 
amortized over a reasonable period not to exceed 40 years. For 
investments made prior to November 1, 1970, amortization of goodwill is 
not required in the absence of evidence that the goodwill has a limited 
term of existence.
    (5) The financial statements of the investee that are used for 
equity accounting should be timely. If the accounting year of the 
investee differs from that of the investor then the most recent 
available financial statements may be used. The lag in reporting should 
be consistent from period to period.
    (6) Material profits or losses on transactions between the investor 
and investee shall be eliminated until realized by either company as if 
the two were consolidated.
    (7) A transaction of the investee of a capital nature that affects 
the investor's share of the investee's stockholder's equity should be 
reported in the financial statements as if the two were consolidated.
    (8) The investor shall deduct any dividends applicable to 
outstanding cumulative preferred stock whether or not declared, and any 
other dividends declared when computing its share of undistributed 
earnings or losses.
    (9) The investor shall suspend application of the equity method when 
the investment (including the investment memorandum account) together 
with any net advances made to the investee is reduced to zero. 
Additional losses shall not be provided for unless the investor has 
guaranteed obligations of the investee or is otherwise committed to 
provide further financial support for the investee. If the investee 
subsequently reports net income the investor shall resume applying the 
equity method at such time as its share of that net income equals the 
share of net losses not recognized during the period of suspension.
    (10) When the investor's voting stock interest falls below the level 
of ownership described in paragraph (b)(1) of this instruction, the 
investment no longer qualifies for the equity method. Should dividends 
received on the investment in subsequent periods exceed the investor's 
share of earnings for such periods, the investment memorandum and income 
memorandum accounts shall be reduced by the excess amount.
    (11) When the level of ownership of an investment increases to that 
described in paragraph (b)(1) of this instruction, the equity method 
shall be applied. The memorandum accounts for the investment, income 
(for current year's equity in undistributed earnings less amoritzation), 
and retained earnings (for prior years' equity in undistributed earnings 
less amortization) shall be adjusted retroactively on a step-by-

[[Page 45]]

step basis determining the equity in net assets at date of acquisition, 
amortization adjustment, and equity in undistributed earnings or losses 
at each level of ownership. Where small purchases are made over a period 
of time and then a purhase is made which qualifies the investment for 
the equity method, the date of latest purchase may be used as date of 
acquisition.
    (12) Information having significance with respect to the investor's 
ownership in investees shall be disclosed in notes to financial 
statements of annual reports filed with the Board in accordance with 
generally accepted accounting principles.
    (c) When securities with a fixed maturity date are purchased at a 
discount (i.e., when total cost including brokerage fees, taxes, 
commissions, etc., is less than par), such discounts may be amortized 
over the remaining life of the securities through periodic debits to the 
account in which the securities are carried (preferably coincident with 
entries recording interest accruals) and credits to the same account in 
which interest income is credited. No debits shall be made in respect to 
discounts upon securities held as investments or in special funds if 
there is reason to believe that such securities will be disposed of by 
redemption or otherwise at less than par or will not be paid at date of 
maturity. When securities with a fixed maturity date are purchased at a 
premium (i.e., when the total cost including brokerage fees, taxes, 
commissions, etc., is in excess of par), such premium may be amortized 
over the remaining life of the securities through periodic credits to 
the account in which the securities are carried (preferably coincident 
with entries recording interest accruals) and debits to the same 
accounts in which the interest income is recorded.
    Note: The carrier shall follow generally accepted accounting 
principles where an interpretation of the rules for equity accounting is 
needed or obtain an interpretation from its public accountant or the 
Board.
    5-3  Discounts, expenses, and premiums on debt. (a) Ledger accounts 
shall be provided to cover the discounts, expenses, and premiums on the 
sale or resale of each subclass of funded debt and of receivers' and 
trustees' securities issued for the benefit of or assumed by the 
company. (For explanation of subclass see account 765, Funded debt 
unmatured.) The net debit balances remaining in the ledger accounts for 
discount and premium shall be included in account 770.1, Unamortized 
debt discount, and the net credit balances in account 770.2, Unamortized 
premium on debt. Debt expense shall be included in account 743, Other 
deferred debits.
    (b) Each fiscal period there shall be charged to account 548, 
Amortization of discount on funded debt, a proportion on a consistent 
basis of each of the debit balances in the discount and premium accounts 
and correspondingly there shall be credited to income account 517, 
Release of premiums on funding debt, a similar proportion of each of the 
credit balances in these accounts. Related debt expense shall also be 
charged to account 548 on a proportional and consistent basis. The 
amounts for the respective debit balances for discount and expenses 
applicable to a particular issue of obligations may be charged directly 
to account 548 at time of issue when the aggregate of such amounts does 
not appreciably affect the accounts. The method of apportioning debt 
discount, issue costs, and premium to accounts 517 and 548 shall be the 
interest method, where the effective interest rate on the date of 
issuance is applied to the carrying value (debt, less related discount, 
and issue cost, plus related premium of each specific issue to the 
beginning of any given period.) However, other methods of amortization 
may be used if the results obtained are not materially different from 
those which would result from the interest method.
    (c) When any funded debt which has been actually issued to bona fide 
holders for value is reacquired by the accounting company, that 
proportion of the balance remaining in accounts containing discount, 
expense and premium on funded debt for the subclass of the security 
reacquired applicable to the portion reacquired shall be credited or 
charged thereto, as appropriate, and concurrently charged or credited to 
account 519, Miscellaneous income, account 551, Miscellaneous income 
charges; or to account 570, Extraordinary items, as appropriate, in 
accordance with the text of these accounts. Such proportion

[[Page 46]]

shall be based upon the ratio of the par value of the security 
reacquired to the par value of all the securities of the subclass 
actually outstanding immediately before such reacquirement. Gains and 
losses from extinguishment of debt (excluding debt maturing serially) 
which is acquired to satisfy sinking fund requirements, shall not be 
recorded as extraordinary items regardless of amount, but shall be 
included in accounts 519 and 551, as appropriate. Such gains and losses 
shall be separately disclosed in reports to this Board.

[42 FR 35017, July 7, 1977, as amended at 52 FR 4325, Feb. 11, 1987]

    5-4  Discount, premium, and assessment on capital stock. (a) 
Separate ledger accounts shall be provided for each subclass of capital 
stock issued or assumed by the accounting company to cover discount 
suffered and premium realized at the time of sale of capital stock. 
General levies or assessments against stockholders shall be credited to 
the appropriate ledger accounts for the subclass of capital stock 
against which the levy or assessment is made.
    (b) The total of net debit balance in these ledger accounts shall be 
included in account 793, Discount on capital stock, and the total of net 
credit balances in account 794, Premiums and assessments on capital 
stock.
    (c) Discount on each subclass of capital stock may be offset or 
reduced by charges to account 794, Premiums and assessments on capital 
stock, to the extent that net gains from premiums or assessments have 
been included therein or to account 795, Other capital, to the extent 
that net gains from reacquisition and resale or retirement of capital 
stock applicable to such subclass have been included therein. Any 
remaining discount may be amortized by charge to account 616. Other 
debits to retained earnings, or may be retained and carried in account 
793, Discount on capital stock, until the stock to which the discount 
applies is retired.
    (d) In case the accounting company is permitted and elects with the 
approval of the Board, to distribute all or any part of the net balance 
of other paid-in capital to its stockholders, the amount thus 
distributed shall be charged to account 795, Other capital.
    (e) When capital stock is reacquired, either by purchase or 
donation, and is retired or cancelled, account 791, Capital stock, shall 
be charged with the par value, stated value of no par stock, or if no 
par stock without stated value, the proportionate amount at which the 
particular class of stock is included in account 791. Any excess of 
reacquisition cost over the recorded value of the stock shall be charged 
to account 795, Other capital, to the extent of the accumulated net 
gains included in this account applicable to reacquisition and resale or 
retirement of such subclass. Any remaining excess reacquisition cost 
shall be charged to account 616, Other debits to retained earnings. Any 
excess of recorded value over reaquisition cost shall be credited to 
account 795, Other capital.
    (f) When capital stock is reacquired, either by purchase or 
donation, and is not retired or cancelled, nor properly includable in 
sinking or other funds, the reacquisition cost shall be charged to 
account 798.5, Treasury stock.
    (g) When treasury stock is resold, account 798.5, Treasury stock, 
shall be credited with the cost paid for it. Gains shall be credited to 
account 795, `Other capital. Losses shall be charged to account 795, 
Other capital, to the extent that previous net gains from sales or 
retirements of the same class of stock are included therein; otherwise, 
to account 616, Other debits to retained earnings.
    5-5  Joint liabilities. The accounting company shall state as a 
liability in its balance sheet the difference between the total par 
value of securities jointly or severally issued by it and others and the 
portion of such liability which, under the joint arrangement, it is 
expected will be liquidated by the other party or parties to the joint 
arrangement. The amount of the jointly or severally issued securities 
expected to be liquidated by the other party or parties shall be shown 
as a contingent liability in accordance with instruction 5-6 pertaining 
to contingent assets and liabilities.
    5-6  Contingencies. (a) The proper accounting treatment for 
contingencies depends upon whether the contingency

[[Page 47]]

is: Probable: the event or events are likely to occur; Reasonably 
possible: the chance of occurrence of the future event or events is more 
than remote, but less than likely; or Remote: the chance of occurrence 
of the future event or events is slight.
    (b) Loss contingencies must be accrued when they are probable and 
the amount of loss can be reasonably estimated. Where they are only 
reasonably possible, only footnote disclosure is required. Where they 
are remote, footnote disclosure is not required, but is permitted.
    (c) Gain contingencies usually are not reflected in the accounts 
since to do so might be to recognize revenue prior to its realization. 
Adequate disclosure shall be made of contingencies that might result in 
gain, but care shall be exercised to avoid misleading implications as to 
the likelihood of realization.

[42 FR 35017, July 7, 1977, as amended at 52 FR 4326, Feb. 11, 1987]

    5-7  Long-term obligations. Commitments under unconditional purchase 
obligations associated with suppliers' financing arrangements and future 
payments on long-term borrowings and redeemable stock shall be disclosed 
in accordance with generally accepted accounting principles. Such 
disclosures shall not preclude accounting recognition if the substance 
of a financing arrangement is the acquisition of an asset or incurrence 
of a liability.

[47 FR 4266, Jan. 29, 1982, as amended at 52 FR 4321, Feb. 11, 1987]



INSTRUCTIONS FOR CLEARING ACCOUNTS--Table of Contents




    6-1  Items to be charged. In recognition of the fact that certain 
expenditures incident to the construction and the operation of property 
are not chargeable directly to any particular property investment or 
expense account, clearing accounts have been provided for the purpose of 
securing an equitable distribution of such items to the proper primary 
accounts.
    6-2  Material and stationery store expenses. (a) To clearing 
accounts called Material store expenses and Stationery store expenses 
shall be charged expenses in connection with purchasing, handling and 
storing material and stationery in and distributing it from the 
company's storehouses. Including the pay of officers and employees in 
the purchasing and store departments and their traveling, office, and 
other expenses; also expenses, including wages, fuel, and supplies, of 
operating switching locomotives when exclusively assigned to the service 
of switching at material storehouses. (Expenses of incidental switching 
at material yards by locomotives in regular switching service shall be 
charged to the appropriate transportation accounts.) The pay and 
expenses of men employed in purchasing or inspecting a single class of 
material, such as ties, shall be added as store expenses to the cost of 
that particular material.
    (b) The total amount of storehouse expenses charged to these 
accounts shall be distributed among the accounts to which material and 
stationery has been charged, in proportion to the amounts charged to 
each account for the items issued, except that the amount representing 
the purchasing department expenses shall be apportioned on the value of 
the items issued which were purchased by that department. To avoid 
monthly fluctuations in the ratio of store expenses to the value of 
material and statonery purchased or issued, carriers may make a monthly 
apportionment on the basis of fair percentage rates, provided the store 
expense accounts are adjusted and closed out at the end of each year.
    6-3  Shop expenses. (a) To a clearing account entitled Shop expenses 
shall be charged items of expense at shops, enginehouses, repair tracks, 
and other places where mechanical work is performed, not assignable 
directly to specific accounts. Such expenses shall be apportioned among 
the various accounts affected. The basis of distribution shall be the 
relative proportion which the total amount of charges to Shop expenses 
bears to the total of the directly distributed labor. To avoid monthly 
fluctuations in the ratio of shop expenses to the total of distributed 
labor, carriers are permitted to make the monthly apportionment on the 
basis of a percentage of the distributed labor, provided the shop 
expense

[[Page 48]]

account is adjusted and closed out at the end of the year.
    (b) The expenses assignable to this account shall include the pay of 
foremen (who exercise supervision over all departments), their clerks, 
and other employees engaged in general work in and about shops, cost of 
heat, light and power; cost of small tools and supplies and water and 
power purchased; also cost of removal of snow and ice from transfer 
tables and shop yards, and other incidental shop expenses. To this 
account shall be charged expenses, including wages, fuel and supplies, 
of operating switching locomotives when exclusively assigned to 
switching service at shops (the expenses of incidental switching at 
shops by locomotives in transportation switching service shall be 
charged to appropriate transportation accounts).
    6-4  Gravel and sand pits and quarries. (a) When a gravel or sand 
pit or quarry is opened for operations likely to extend over a long 
period, an account shall be set up designated, Operations of gravel pit 
at --------------, or Operations of quarry at --------, as the case may 
be. To this account shall be charged cost of the land in excess of its 
estimated value after the gravel, sand, or stone has been removed 
(credit to the property account in which the cost of the land is 
included); payments for right to enter upon and remove ballast from land 
not owned by the carrier; cost of sinking test holes; and costs 
preparatory to opening the pit or quarry. To this account shall be 
charged also the cost, in excess of the estimated salvage value, of 
rails and fastenings, ties, other material and labor used in 
constructing tracks to and in the gravel pit or quarry (the estimated 
salvage being carried in an appropriate suspense account); cost of labor 
and train service employed in producing, quarrying, and loading ballast, 
including the cost of operation, repairs, and depreciation of power 
shovels and other machines and machinery; pay and expenses of watchmen; 
cost of explosives and hand tools, and miscellaneous expenses; and cost 
of installing, operating and maintaining signals and interlockers at 
gravel pits.
    (b) Credit to the clearing account shall be made each month to cover 
the cost of ballast material produced during the month. The cost of 
production shall include the expenses directly assignable to the monthly 
output plus a proportion of the expenses not directly assignable, such 
as cost of land, tracks, machinery, and interlockers. This latter amount 
shall be computed upon the basis of the ratio which the monthly output 
bears to the total estimated yardage to be taken from the pit. When any 
portion of the product of such pits or quarries is sold, the cost 
thereof shall be credited to this clearing account and any related 
profit shall be credited to account 110, Incidental.
    6-5  Power plant operations. (a) The accounting for the expenses of 
maintaining and operating an electric, steam, or other power plant (both 
building and machinery) shall be determined by the purpose for which the 
power produced is used. When a power plant is intended and used for 
producing power solely for the carrier's own operations and the cost of 
operating the plant is chargeable to clearing account Shop expenses, or 
to any one specific account for operating expenses, the expenses of 
maintenance shall be charged to the appropriate maintenance accounts, 
and the cost of operation to the account appropriate according to the 
use of the power.
    (b) When the power from such a plant is properly chargeable to more 
than one account, the expenses of maintaining and operating the plant 
shall be included in clearing account designated Power plant operations. 
The expense of maintenance shall be cleared from that account to the 
appropriate maintenance accounts. The expenses of operation shall be 
apportioned to the appropriate accounts upon the basis of quantity of 
power used for the various purposes.
    (c) When a part of the power produced by a power plant is sold and 
the remainder is used in the carrier's own operations, the cost of 
maintaining and operating the plant shall be charged to a clearing 
account. The expense of maintenance shall be cleared from that account 
to the appropriate maintenance accounts. The proportion of the expenses 
of operation assignable to the power sold, on the basis of ratio of

[[Page 49]]

quantity of power sold to total quantity of power produced, shall be 
credited to this clearing account and any related profit shall be 
credited to account 110, Incidental. The remainder of the cost of 
operation shall be distributed to the appropriate expense accounts for 
the carrier's own operations.
    (d) When power plants are intended and used solely for furnishing 
power to others, their investment cost shall be included in account 737, 
Property used in other than carrier operations, and the revenues and 
operating expenses shall be included in the accounts provided for 
operations of such property.
    (e) The accounting for the maintenance of transmission systems and 
distribution systems shall be in accordance with instructions pertaining 
to power plant operations.



PROPERTY ACCOUNTS--Table of Contents






Road--Table of Contents




0  Road.
    The several primary accounts included in this general account are 
designed to show the cost of land and road property owned by the carrier 
and devoted to transportation service.
2  Land for transportation purposes.
    This account shall include the cost of land of necessary width 
acquired for roadway; the cost of land for station, office, shop, and 
other grounds; for ingress to or egress from such grounds; for borrow 
pits, waste banks, snow fences, sand fences, and other railway 
appurtenances; and for storage of material adjoining the right-of-way; 
the cost of land for wharves and docks and the cost of riparian or water 
rights necessary therefor; the cost of removing from the right-of-way 
and locating elsewhere the property of others, and the cost of the 
necessary land for relocation of the property, when such costs are 
assumed by the accounting carrier.
    The carrier's records shall be kept in such manner as to show 
separately the cost of land purchased. Proceeds from the sale of timber 
or of improvements purchased with right-of-way, less any cost of 
removal, shall be credited to this account.

                            Items of Expense

Abstracts.
Appraisals.
Arbitrators in condemnation cases.
Commissions paid to others.
Condemnation expenses, including court costs and special counsel fees.
Damages to property of others.
Deferred payments for right-of-way.
Ditches for waterways when part of consideration.
Judgments and decreed costs to clear or defend titles.
Notarial fees.
Plats.
Premiums on condemnation bonds.
Recording deeds.
Payments for relinquishment of cattle passes and other rights.
Removal and relocation of buildings and other structures not purchased.
Rent of land when part of consideration for purchase.
Right-of-way agents' compensation (engaged solely in acquiring right of 
way).
Taxes accrued and assumed at time of purchase.
    Note A: The cost of land acquired in excess of that necessary for 
transportation operations shall be included in balance sheet account 
737, ``Property used in other than carrier operations.'' When the 
purchase of land acquired for transportation operations involves land 
not used for such purposes, the charges to this account shall be based 
upon the estimated cost of only that portion which is used for such 
purposes, and the cost of the remaining land shall be included in 
account 737, ``Property used in other than carrier operations.'' Only 
the actual cost borne by the carrier for right-of-way and other lands 
acquired through vacation of streets and highways shall be included in 
this account. No donation should be considered as involved in the 
acquisition of such property.
    Note B: Amounts paid for options to purchase land for use in 
transportation operations shall be charged to account 743, ``Other 
deferred debits.'' If the carrier subsequently purchases the land, the 
amount of the option payment shall be transferred to this account. If 
the carrier does not acquire the land and forfeits the option paid, the 
amount shall be charged to account 551, ``Miscellaneous income 
charges.''
3  Grading.
    (a) This account shall include the cost of clearing and grading the 
roadway, and of constructing protection for the roadway, tracks, 
embankments and cuts.
    (b) When a part of a bridge or trestle, or the entire structure, is 
converted by filling into an earth embankment, and

[[Page 50]]

the bridge or trestle is used in lieu of a temporary trestle which would 
otherwise be required for the filling, the estimated cost of such 
temporary trestle shall be included in the cost of the filling, and 
charged to this account. (See note A, under account 6, ``Bridges, 
trestles, and culverts.'')
    (c) When a tunnel is converted into an open cut, the cost of 
clearing, grubbing, and excavating shall be included in this account. 
(Also see instruction 2-11.)

                 Details of Roadbed and Items of Expense

Advertising for contractors' bids.
Berm ditches.
Blasting.
Breakwaters.
Bulkheading.
Clearing land.
Cribbing.
Dikes (including those of earthen construction which are intended to 
function indefinitely).
Ditches (not required by right-of-way agreement).
Dressing slopes.
Excavation for conversion of tunnels into open cuts.
Filling bridges, trestles, and culverts.
Grading outfits.
Grubbing land.
Material taken from borrow pits.
New channels for streams.
Operations of steam shovels.
Payments for privilege of wasting material on the property of others.
Payments for waste banks off the right-of-way.
Retaining walls.
Revetments.
Riprap.
Spoil banks.
Temporary trestles for fills.
Tools for grading.
Wing dams.

[42 FR 35017, July 7, 1977, as amended at 49 FR 2255, Jan. 19, 1984]
4  Other right-of-way expenditures.
    This account shall include the cost (in excess of cost of railway 
facilities installed, if any) actually borne by the carrier of 
improvement projects (other than public improvement projects), such as 
the construction of canals, farm and other private passes, pipe lines, 
drains, and other facilities across the carrier's right-of-way.
5  Tunnels and subways.
    This account shall include the cost of tunnels and subways for the 
passage of trains, including apparatus for ventilating and lighting and 
safety devices therein, other than signals.
    Note A: The cost of tracks, including guard rails, in tunnels shall 
not be charged to this account.
    Note B: Station subways not highway crossings are includible in 
account 16, ``Station and office buildings.''
    Note C: When a tunnel is converted into an open cut, the ledger 
value of the tunnel shall be credited to this account. The service value 
of the tunnel shall be charged to account 735, ``Accumulated 
depreciation; Road and equipment property.''

[42 FR 35017, July 7, 1977, as amended at 48 FR 7183, Feb. 18, 1983]
6  Bridges, trestles, and culverts.
    This account shall include the cost of the substructure and 
superstructure of bridges, trestles, and culverts which carry the tracks 
of the carrier over water-courses, ravines, public and private highways, 
and other railways.

                      Details of Bridge Structures

Abutments.
Bridge signs.
Cofferdams.
Concrete and masonry ends for culvert.
Cribs.
Decking, including gravel for fire protection.
Dike protection.
Drainage systems.
Draw protection.
Drawbridge engines and machinery.
False work.
Guard timbers.
Ice breakers.
Painting (except repainting).
Pier protection.
Piers and foundations.
Pipe culverts.
Retaining walls.
Riprap around abutments.
Riprap at culverts ends.
Supports.
Water channels.
Waterproofing.
Wind dams.
Wing walls.
    Note A: When a part or the entire structure of a bridge or trestle 
is converted, by filling, into an earth embankment, the ledger value of 
the structure, or of the portion thereof filled, shall be credited to 
this account. In case the bridge or trestle is used in lieu of a 
temporary trestle for the purpose of filling, the estimated cost of such 
temporary

[[Page 51]]

trestle shall be charged to account 3, ``Grading.'' The ledger value of 
the structure or portion thereof, filled, less the value of the salvage 
and the estimated cost of trestle charged to account 3 shall be charged 
to account 735, ``Accumulated depreciation; Road and equipment 
property.''
    Note B: The cost of bridges to carry the carrier's tracks over 
undergrade crossings, including the necessary piers and abutments to 
sustain them, shall be included in this account.
7  Elevated structures.
    This account shall include the cost of elevated structures and 
foundations of elevated railway systems. This account is applicable to 
structures other than earthwork, which are for the purpose of elevating 
tracks above the grade of streets, and which are not properly 
classifiable as bridges or trestles.
    Note: The cost of stations and other structures built on elevated 
structures shall be accounted for according to the class of the 
structure and not in this account.
8  Ties.
    (a) This account shall include the cost of cross, switch, bridge and 
other track ties used in the construction of tracks for the movement or 
storage of locomotives and cars (including tracks in shop, fuel station, 
supply yard areas, etc.), and the cost of additional ties subsequently 
laid in such tracks. This account should also include the cost of labor 
for unloading, distributing and placing ties in tracks.
    (b) The cost of handling ties in general supply and storage yards 
shall be included as store expenses.
    Note: The cost of ties used in the construction of car floats shall 
be included in the cost of such floating equipment, and the cost of ties 
used in the construction of temporary tracks, such as gravel-pit and 
quarry tracks, shall be included in the appropriate clearing accounts.
    Note: Respacing crossties is to be considered maintenance and 
expense.

[48 FR 7183, Feb. 18, 1983]
9  Rails and other track material.
    (a) This account shall include the cost of rails and other track 
material used in the construction of tracks for the movement or storage 
of locomotives and cars (including tracks in shop, fuel station, supply 
yard areas, etc.); the cost of welding two or more lengths or rail into 
continuous lengths for use in construction of tracks; and the cost of 
labor associated with unloading and installation of the rail and other 
track material.
    (b) The cost of handling rails and other track material in general 
supply and storage yards shall be included as store expenses.

                      Items of Other Track Material

    Angle bars.
    Anticreepers.
    Bumping posts.
    Compromise joints.
    Connecting rods.
    Crossings, including foundations or bases.
    Derails.
    Frog blocking.
    Frogs.
    Guard-rail blocking.
    Guard-rail clamps.
    Guard-rail fasteners.
    Guard rails, switch and other.
    Main rods.
    Nut locks.
    Nuts.
    Offset bars.
    Rail braces.
    Rail chairs.
    Rail clips.
    Rail joints.
    Rail rests.
    Rail shims.
    Rail splices.
    Splice bars.
    Step chairs.
    Switch chairs.
    Switch crossings.
    Switch lamps.
    Switch locks and keys.
    Switch points.
    Switch stands.
    Switch targets.
    Switches.
    Tie plates.
    Tie plugs.
    Tie rods.
    Track bolts.
    Track insulators.
    Track spikes.

    Note A: The cost of rails and other track material used in the 
construction of car floats shall be included in the cost of such 
floating equipment and the cost of rails and other track material used 
in the construction of temporary tracks, such as gravel-pit and quarry 
tracks, shall be included in the appropriate clearing accounts.
    Note B: The following activities are considered as maintenance and 
should be expensed accordingly.
 Rail flaw detection
 Track inspection
 Shifting of existing track

[[Page 52]]

 Removing weeds in track
 Transposing rail
 Restoring chipped and battered rail ends by welding and/or by 
rail grinding train or other such equipment.
 Gauging track
 Loading scrap track materials
 Lubricating rail
 Tightening bolts
 Resetting spikes and rail anchors in existing track
 Any other maintenance work not involving the placement of track 
material

[48 FR 7183, Feb. 18, 1983, as amended at 49 FR 2255, Jan 19, 1984; 52 
FR 4326, Feb. 11, 1987]
11  Ballast.
    (a) This account shall include the cost of gravel, stone, slag, 
cinders, sand, and like material used in ballasting tracks (including 
tracks in shop, fuel station, and supply yard areas, etc.) including 
cost of worktrain service and the cost of labor expended in placing 
ballast in tracks.
    Note A: The cost of ballast used in the construction of temporary 
tracks, such as gravel-pit and quarry tracks, shall be included in the 
appropriate clearing accounts.
    Note B: Earth placed to form a crown in the middle of the track is 
not considered as ballast.
    Note C: The cost of ballast material placed on the decking of 
bridges solely for fire-protected purposes shall be included in account 
6, ``Bridges, trestles and culverts.''
    Note D: Surfacing (surface correction of existing ballast) is to be 
considered maintenance and expensed.

[48 FR 7183, Feb. 18, 1983, as amended at 49 FR 2255, Jan. 19, 1984]
13  Fences, snowsheds, and signs.
    This account shall include:
    (a) Fences. The cost of right-of-way fences and snow and sand 
fences, farm gates, cattle guards, wing fences, aprons, and hedges, on 
property not previously fenced, excluding those around stockyards, fuel 
stations, station and shop grounds, and building sites.
    (b) Snowsheds. The cost of snowsheds, including initial cost of 
planting trees for protecting tracks from snow.
    (c) Signs. The initial cost of signs other than those for 
identification of bridges, signals, stations and other structures.

                               Sign Items

Boundary signs.
Bridge-caution signs.
Crossing signs.
Curve and elevation markers.
Division-limit signs.
Mileposts.
Monuments.
Safety-first signs at crossings.
Section-limit signs.
Slow or stop signs.
Tunnel-caution signs.
Water-station signs.
Whistle signs.
Yard-limit signs.
    Note A: The cost of fences (other than right-of-way boundary fences) 
around stockyards, fuel and water stations, and other building sites, 
shall be charged to the accounts appropriate for the cost of the 
structures.
    Note B: The cost of signs for identifying bridges, signals, 
stations, and other structures shall be included in the account 
appropriate for the cost of the structures.
    Note C: The cost of crossing signals, including crossing gates, 
shall be included in account 27, ``Signals and interlockers.''
    Note D: This account shall also include the cost of replacing units 
of such property or substantial parts of fences or snowsheds the 
original cost of which are charged to this account.
16  Station and office buildings.
    This account shall include the cost of station and general office 
structures, their fixtures, appurtenances, and furniture necessary to 
equip the buildings ready for use.

                Station and Office Structures and Details

Breakwaters for protection of buildings.
Buildings and rooms for trainmen.
Buildings on piers.
Coal transferring machinery (not on coal and ore wharves).
Coal trestles (not at fuel stations).
Drainage and sewerage systems.
Elevators and machinery.
Fences.
Freight cranes and derricks.
Freight handling machinery.
Gas-supply systems.
General office buildings.
Grain elevators and warehouses.
Heating plants.
Hoisting engines, for handling freight.
Lighting plants.
Ore-transferring machinery.
Pavement within ground limits.
Platforms, passengers, including planking between tracks.
Power distribution systems, interior.

[[Page 53]]

Sidewalks.
Station footbridges (not highway crossings).
Station intertrack fences.
Telegraph offices.
Track scales.
Water-supply systems.
Yard offices.
    Note A: Office buildings used exclusively in connection with 
maintenance of way shall be included in account 17, ``Roadway 
buildings.'' Those used exclusively in connection with maintenance of 
equipment shall be included in account 20, ``Shops and enginehouses.''
    Note B: The cost of grading and preparing grounds both before and 
after the construction of station buildings, the cost of constructing 
sidewalks, driveways, and fences thereon, and the cost of permanent 
water rights shall be included in the cost of the buildings. The fees 
and expenses of architects employed to design or supervise the 
construction in the buildings shall also be included in the cost of the 
buildings. However, the cost of restoring the grounds after addition and 
betterment work shall be included in the appropriate operating expense 
accounts.

[42 FR 35017, July 7, 1977, as amended at 52 FR 4326, Feb. 11, 1987]
17  Roadway buildings.
    This account shall include the cost of roadway shops and other 
roadway buildings, including drainage, water, gas, and sewer pipes and 
connections; and all machinery, fixtures, and furniture to equip the 
building ready for use.

                        List of Roadway Buildings

Breakwaters for protection of buildings.
Carpenters shops.
Fire-engine houses.
Frog shops for repair of track material.
Hand-car houses.
Lighting plants.
Lumber sheds.
Planning mills.
Rail reclamation plant.
Rail shops for repair of track material.
Rail welding plant.
Repair shops.
Scrap bins.
Section dwelling houses.
Tool houses.
    Note: The cost of grading and preparing grounds both before and 
after the construction of roadway buildings, the cost of constructing 
sidewalks, driveways, and fences thereon, and the cost of permanent 
water rights, shall be included in the cost of the buildings. The fees 
and expenses of architects, employed to design or supervise the 
construction of the buildings, shall also be included in the cost of the 
buildings. However, the cost of restoring the grounds after addition and 
betterment work shall be included in the appropriate operating expense 
accounts.
18  Water stations.
    This account shall include the cost of structures, facilities, and 
appliances necessary to equip for service, stations for supplying water. 
The cost of analyses of water preliminary to the establishment of water 
stations shall be included in this account.

                  Water Station Structures and Details

Boilers.
Breakwaters for protection of buildings.
Buildings on piers.
Cisterns and dams.
Fences.
Pump houses.
Purifying plants.
Reservoirs and wells.
Settling basins.
Stationary engines.
Steam pipes.
Tanks and foundations.
Water pipe lines.
Water-treating plants.
    Note A: The cost of water stations used solely for supplying water 
to shops, power plants, stations, hotels, tenement houses, or section 
houses shall be charged to the appropriate accounts relating to the 
property so supplied.
    Note B: The cost of a temporary water station established only for 
use during the construction period shall be included in the primary 
accounts to which is charged the cost of the work in connection with 
which the water station is used.
    Note C: The cost of grading and preparing grounds both before and 
after the construction of water station buildings, the cost of 
constructing sidewalks, driveways, and fences thereon, and the cost of 
permanent water rights shall be included in the cost of the buildings. 
The fees and expenses of architects employed to design or supervise the 
construction of the buildings shall also be included in the cost of the 
buildings. However, the cost of restoring the grounds after addition and 
betterment work shall be included in the appropriate operating expense 
accounts.
19  Fuel stations.
    This account shall include the cost of structures, facilities other 
than tracks, and appliances necessary to equip for service, stations for 
supplying fuel to locomotives and floating equipment.

[[Page 54]]

                   Fuel Station Structures and Details

Breakwaters for protection of buildings.
Buildings on piers.
Dumping machinery.
Elevating machinery.
Fences.
Fuel houses or stations.
Fuel-oil plants, pumps, and tanks.
Fuel platforms on wharves.
Stationary engines.
Weighing apparatus.
    Note A: The cost of fuel stations, coal houses, etc., used solely 
for supplying fuel to shops, power plants, stations, hotels, tenement 
houses, or section houses shall be charged to the appropriate accounts 
relating to the property so supplied.
    Note B: The cost of a temporary fuel station established only for 
use during the construction period shall be allocated to the primary 
accounts charged with the construction costs.
    Note C: The cost of grading and preparing grounds both before and 
after the construction of fuel station buildings, the cost of 
constructing sidewalks, driveways, and fences thereon, and the cost of 
permanent water rights shall be included in the cost of the buildings. 
The fees and expenses of architects employed to design or supervise the 
construction of the buildings shall also be included in the cost of the 
buildings. However, the cost of restoring the grounds after addition and 
betterment work shall be included in the appropriate operating expense 
accounts.
20  Shops and enginehouses.
    This account shall include the cost of buildings to be used as shops 
and enginehouses and storehouses for material for maintenance of 
equipment; foundations, except those special to particular machines and 
other apparatus; furniture and fixtures other than equipment chargeable 
to account 44, Shop machinery; drainage, sewerage, and water supply 
systems; and plants for heat and light.

               Shop and Enginehouse Structures and Details

Air-compressor houses.
Bins for material.
Blacksmith shops.
Breakwaters for protection of buildings.
Buildings on piers.
Car sheds and shops.
Carpenter shops.
Electric-power distribution systems within buildings.
Enginehouses.
Fire engine houses.
Footbridges (not public highways).
Foundries and machine shops.
Gas-compressor houses.
Heating and lighting plants.
Laboratories.
Lumber sheds.
Material and supply truck tracks.
Motor-crane tracks.
Offices, shop.
Paint shops.
Pipe lines, air, and heat.
Pipe lines, gas, interior.
Planning mills and repair shops.
Platforms, shop and yard.
Scale houses and scales.
Scrap bins.
Sidewalks.
Steam-distribution systems, interior.
Storehouses.
Tanks, gas, and oil.
Test rooms.
Turntables.
Upholstering shops.
Warehouses.
    Note A: The cost of distinct power plant buildings for shop purposes 
shall be included in account 29, ``Power plants.'' The cost of 
distribution systems leading from such power plants to shops shall be 
included in account 31, ``Power-transmission systems.''
    Note B: The cost of grading and preparing grounds both before and 
after the construction of shop buildings, the cost of constructing 
sidewalks, driveways, and fences thereon, and the costs of permanent 
water rights shall be included in the costs of the buildings. The fees 
and expenses of architects employed to design or supervise the 
construction of the buildings shall also be included in the cost of the 
buildings. However, the cost of restoring the grounds after addition and 
betterment work shall be included in the appropriate operating expense 
accounts.
    Note C: The cost of shop buildings devoted solely to the maintenance 
of way and structures shall be included in account 17, ``Roadway 
buildings.''
22  Storage warehouses.
    This account shall include the cost of storage warehouses, including 
machinery and fixtures therein. The buildings herein referred to are not 
the ordinary freight warehouses or stations where freight is received 
for shipment, etc., but warehouses in which merchandise is stored and 
which the railway companies operate as storage warehouses.
    Note A: The cost of grading and preparing grounds both before and 
after the construction of storage warehouse buildings, the cost of 
constructing sidewalks, driveways, and fences thereon, and the cost of 
permanent water rights shall be included in the cost of the buildings. 
The fees and expenses of architects employed to design or supervise the

[[Page 55]]

construction of the buildings shall also be included in the cost of 
buildings. However, the cost of restoring the grounds after addition and 
betterment work shall be included in the appropriate operating expense 
accounts.
    Note B: The cost of warehouses leased to noncarriers shall be 
charged to account 737, ``Property used in other than carrier 
operations.''
23  Wharves and docks.
    This account shall include the cost of wharves, docks, dry docks, 
slips, float bridges, and other landings for vessels, including the cost 
of necessary dredging and the cost of float-bridge machinery; also the 
cost of piling, pile protection, cribs, cofferdams, walls, and other 
necessary devices and apparatus for the operation or protection of 
wharves and docks.

                      Details of Wharves and Docks

Bridge pontoons.
Bulkheads.
Caissons and cribwork.
Dry docks.
Ferry-bridge machinery.
Ferry bridges.
Ferry slips.
Jetties and inclines.
Transfer-bridge machinery.
Transfer bridges.
    Note A: The cost of coal and ore wharves and docks shall be included 
in account 24, ``Coal and ore wharves.''
    Note B: The cost of the land on which wharves are built and cost of 
riparian or water rights for wharves and docks shall be charged to 
account 2, ``Land for transportation purposes.''
    Note C: The cost of buildings located on wharves shall be included 
in the accounts appropriate for the class of buildings.
    Note D: The cost of grading and preparing grounds both before and 
after the construction of wharves (other than coal and ore wharves), the 
cost of constructing sidewalks, driveways, and fences thereon, and the 
cost of permanent water rights shall be included in the cost of the 
wharves. However, the cost of restoring the grounds after addition and 
betterment work shall be included in the appropriate operating expense 
accounts.
24  Coal and ore wharves.
    This account shall include the cost of wharves and docks for the 
transfer, treatment, blending, or storage of coal or ore, including the 
cost of necessary dredging and of conveyors, machinery, and fixtures.
    Note A: The structures referred to in the account do not include 
small transfer or storage trestles or wharves at stations where coal is 
stored or delivered, such trestles being classed as station buildings.
    Note B: The cost of grading and preparing grounds both before and 
after the construction of coal and ore wharves, the cost of constructing 
sidewalks, driveways, and fences thereon, and the cost of permanent 
water rights shall be included in the cost of the wharves. The fees and 
expenses of architects employed to design or supervise the construction 
of whaves shall also be included in the cost of the wharves. However, 
the cost of restoring the grounds after addition and betterment work 
shall be included in the appropriate operating expense accounts.
25  TOFC/COFC terminals.
    This account shall include the cost of structures, fixtures, 
machinery and appurtenances comprising terminals used for loading and 
unloading trailers and containers on and from flat cars.

                TOFC/COFC Terminal Structures and Details

Cranes and hoists, including related machinery and appurtenances.
Drainage and sewerage.
Fences.
Grading and preparing grounds for TOFC/COFC terminals.
Offices, TOFC/COFC terminal.
Lighting system.
Platforms, ramps and appurtenances.
Power distribution systems.
Sidewalks, pavements and driveways on terminal grounds.
Terminal trucks and tractors.
    Note A: ``Trailer,'' as used in the text and elsewhere in this 
system of accounts unless otherwise indicated in the context, means 
trailer bodies used in TOFC/COFC service which are permanently mounted 
on running gear. ``Containers'' means trailer bodies used in TOFC/COFC 
service which are not permanently mounted on wheels or chassis, but are 
separated from such running gear before being loaded on flat cars.
    Note B: The cost of grading and preparing grounds both before and 
after the construction of TOFC/COFC terminals, the cost of constructing 
sidewalks, driveways, and fences thereon, and the cost of permanent 
water rights shall be included in the cost of the buildings. The fees 
and expenses of architects employed to design or supervise the 
construction of the buildings shall also be included in the cost of the 
buildings. However, the cost of restoring the grounds after addition and 
betterment work shall be included in the appropriate operating expense 
accounts.

[[Page 56]]

26  Communication systems.
    This account shall include the cost of telegraph, telephone, radio, 
radar, inductive train communication, and other communication systems, 
including terminal equipment.

          Details of Telegraph and Telephone Terminal Equipment

Batteries.
Cables and wires, interior.
Carrier terminating equipment.
Conduits, interior.
Connecting wires.
Current-controlling instruments.
Electric generators and motors.
Electric meters.
Engines, stationary.
Fuses and mechanical protectors.
Rectifiers.
Rheostats.
Sending and receiving instruments.
Switchboards.
Telegraph repeaters.
Telephone repeaters.
Teletypewriters.
Testing outfits.
Transformers.

            Details of Telegraph and Telephone Outside Plant

Aerial attachments.
Braces.
Brackets.
Cable boxes and appurtenances.
Cable and wires, aerial.
Conduits and appurtenances.
Cross arms.
Gas and associated facilities for cables.
Guy stubs.
Guy wires.
Insulators.
Load coils.
Submarine cables and connections.
Telephone pole boxes.
Towers.
Underground cables and connections.

  Details of Radio, Radar, and Inductive Train Communication Equipment

Aerials or antenna, and attachments.
Buildings or towers used exclusively for wireless.
Control units.
Power generating, converting, or supply equipment.
Radar console and associated equipment.
Roadside or office equipment for all wireless systems operated on 
special channels between train and train, train and tower or office, or 
between ship and shore.
Specialized testing and repair equipment.
Transmitters and receivers, including mobile units.
    Note A: Radio, radar or trainphone equipment (except portable 
apparatus) which is permanently attached to locomotives, cars, work 
equipment, or other rolling stock or floating equipment shall be 
included in the same accounts as the equipment on which installed. 
Wireless sets for instruction, advertising, or entertainment shall be 
included in the same accounts as the building in which located.
    Note B: Communication systems of limited extent, not connected with 
other systems used for special purposes and usually installed within a 
single building, group of buildings, or within the limits of a station 
or shop layout or yard, shall be included in the same account as the 
building in which located or in the account appropriate for the service 
with which associated.

                                  Items

Buzzers, bells, dictaphone or other interoffice communication systems in 
an office or group of buildings.
Loud speakers, bells, or whistles in shop and other yards.
Loud speakers, public address devices, press button control lights, 
telautograph or other systems in stations or on platforms.
Whistles, klaxons, or horns operated from signals towers.
    Note C: Test sets shall be classified as tools and included in the 
account appropriate for their use.
27  Signals and interlockers.
    This account shall include the cost of interlocking and other 
signals apparatus for governing the movements of locomotives, cars, and 
trains, and for the protection of traffic at crossings, including towers 
and other buildings, furniture, fixtures, and machinery in connection 
therewith; roadway installations for train control and remote control 
including the cost of the initial tests of such installation; also the 
cost of buildings and machinery of power plants used primarily for the 
production of power for the operation of signals and interlockers.

                                  Items

Automatic-train control devices other than on equipment.
Call-bell systems along track to call in flagmen.
Call boxes, electric.
Car-retarder systems.
Centralized traffic control.
Crossing flasher-light signals.
Crossing gates, highway and railway.
Crossing signals bells.
Crossing warning signals.

[[Page 57]]

Interlocker buildings and machinery.
Power apparatus primarily for the operation of signals and interlockers.
Power-distribution lines primarily for the operation of signals and 
interlockers.
Signal buildings.
Signal machinery, poles and foundations.
Train-order signals.
    Note A: When signal or interlocking apparatus is located in a 
station building, only the cost of the signal or interlocking apparatus 
shall be charged to this account. The entire cost of the building shall 
be included in account 16, ``Station and office buildings.''
    Note B: The cost of track material, such as switches, special rail 
braces, special roads, special track fastenings, split rails, derails, 
derail stands, and frogs, used in connection with interlockers, shall be 
included in account 9, ``Rail and other track material.''
    Note C: When derails are arranged so as to be thrown from switch 
stands, the cost of labor expended in the installation of the 
connections between the switch stand and derail and the devices for 
throwing the derail shall be included in account 9, ``Rail and other 
track material.'' The cost of the material shall be included in account 
9, ``Rail and other track material.''
    Note D: The cost of grading and preparing grounds both before and 
after the construction of signal and interlocker buildings, the cost of 
constructing sidewalks, driveways, and fences thereon, and the cost of 
permanent water rights shall be included in the cost of the buildings. 
The fees and expenses of architects employed to design or supervise the 
construction of the buildings shall also be included in the cost of the 
buildings. However, the cost of restoring the grounds after addition and 
betterment work shall be included in the appropriate operating expense 
accounts.

[42 FR 35017, July 7, 1977, as amended at 52 FR 4326, Feb. 11, 1987]
29  Power plants.
    This account shall include the cost of power-plant and substation 
buildings (housing machinery provided for in account 45, ``Power-plant 
machinery''); all foundations other than those special to particular 
machines and apparatus; and also dams, canals, pipe lines, and 
accessories devoted to the utilization of water for power. Gas and sewer 
pipes and their connections, fixtures (including wiring) for lighting 
and heating, and furniture and miscellaneous fixtures shall be 
considered as a part of the power-plant buildings.

                       Power-Plant Structure Items

Buildings.
Coal bunkers, pockets and trestles.
Fences (other than right-of-way boundary fences).
Fixtures for lighting (including wiring) and heating power-plant 
buildings.
Foundations (except special foundations for machines and other 
apparatus).
Fuel-oil tanks.
Furniture.
Hose and appliances for protecting buildings against fire.
Pavement within ground limits.
Permanent rights in water supply.
Platforms.
Smoke stacks and chimneys and their foundations when distinct from and 
not resting on boilers.
Water, sewer, gas, and drainage, pipes and connections.
Wells (but not pumps).

                     Dam, Canal, and Pipe-Line Items

Aqueducts.
Bridges.
Fences (other than right-of-way boundary fences).
Footbridges.
Reservoirs.
Roadways.
Sluices.
Valves.
Water rights.
    Note A: The cost of power-plant machinery, including stacks resting 
on boilers, and special foundations for machines, shall be included in 
account 45, ``Power-plant machinery.''
    Note B: The cost of the buildings and the power machinery and other 
apparatus of plants used primarily for operating signals and 
interlockers shall be included in account 27, ``Signals and 
interlockers.''
    Note C: Investment in buildings and machinery of detached plants for 
furnishing power both for operating purposes and for sale shall be 
included in this account and in account 45, ``Power-plant machinery,'' 
respectively. When plants are intended and used primarily for generating 
power for sale to other than common carriers, the investment shall be 
included in account 737. ``Property used in other than carrier 
operations.''
31  Power-transmission systems.
    This account shall include the cost of systems for conveying 
electricity, steam, and compressed air from producing plants to place or 
building where used; also the cost of conduits and of poles, cross arms, 
insulator pins, brackets, and other pole fixtures, and

[[Page 58]]

of other structures for power-transmission and distribution systems, 
including those for electric railway operation, and lighting systems for 
general lighting purposes.

                     Power-Transmission System Items

Air pipe-line in car yards.
Compressed air pipe-lines.
Compressed air storage tanks (not at power houses or shops).
Cut-outs (not at power houses and substations).
Overhead trolley wires.
Rail-insulating devices.
Steam-heating pipe-lines in car yards.
Switchboards (not at power houses and substations).
Third-rail insulation and protection.
Transformers (not at power houses and substations).
Underground power tubes.

                       Pole-Line and Conduit Items

Braces and other support for holding poles in position.
Brackets, cross arms, and other pole fixtures.
Conduits for wires and cables.
Cutting and trimming trees.
Guy stubs and wires.
Manholes.
Poles and towers.
Sewer traps.
Stenciling or painting letters or numbers on poles.
    Note A: The cost of wire and pipe-distribution systems located 
within shop buildings and in stations and office buildings shall be 
included in the cost of the buildings, except that lateral service lines 
to equipment-shop machines shall be included in account 44, ``Shop 
machinery.'' The cost of distribution systems used primarily for 
operating signals and interlockers shall be included in account 27, 
``Signals and interlockers.''
    Note B: The cost of conduits and of poles and fixtures for telegraph 
and telephone, or signal lines shall be included in account 26, 
``Communication systems,'' or account 27, ``Signals and interlockers,'' 
as appropriate. The cost of poles and conduits used for telegraph and 
telephone or signal lines and for power-distribution lines shall be 
included in the account appropriate according to their predominant use.
35  Miscellaneous structures.
    This account shall include the cost of all permanent structures not 
provided for elsewhere, including all fixtures and furniture to equip 
them for use.

                     Miscellaneous Structures Items

Floodlight tower installations in yards.
Grain elevators where grain is stored for owners.
Storehouses for general purpose materials and supplies.
    Note A: Small storage elevators at way stations where grain is 
received for shipment are classed as station buildings.
    Note B: The cost of grading and preparing grounds both before and 
after the construction of miscellaneous structures and the cost of 
constructing sidewalks, driveways, and fences thereon, shall be included 
in the cost of the structures. The fees and expenses of architects 
employed to design or supervise the construction of the buildings shall 
also be included in the cost of the structures. However, the cost of 
restoring the grounds after addition and betterment work shall be 
included in the appropriate operating expense accounts.
37  Roadway machines.
    This account shall include the cost of the initial outfit of roadway 
machines provided for the maintenance of roadway and structures at the 
time the road is opened for commercial traffic, and the cost of 
additional roadway machines acquired subsequently. This account shall 
also include the cost of on and/or off-track automotive vehicles, 
permanently equipped with special-purpose machinery such as hydraulic 
cranes, derricks, ditching apparatus, pile-driving equipment, and 
similar machines listed below, and used exclusively in maintenance of 
way and structures.

                        List of Roadway Machines

Adzers.
Anchor applicators.
Ballast regulators.
Cars, lever.
Cars, motor inspection.
Cars, push.
Cars (small), crane, for supply yards and general use.
Concrete mixers.
Ditching machines.
Dredging machines.
Engines, portable.
Grading outfits.
Hydraulic outfits.
Jacks, hydraulic.
Pile drivers.
Plows, unloading.
Rail grinders.
Rail unloaders.
Rock crushers.
Scarifier-inserters.
Spike drivers.
Spike pullers.
Tie tampers.

[[Page 59]]

Timber trucks.
Trackliners.
    Note A: When an important addition and betterment project or the 
construction of a new line necessitates the purchase of roadway machines 
to be used exclusively thereon, the cost shall be included in the 
accounts to which the cost of the work is charged. The amount realized 
from any subsequent sale, or the appraised value of the machines 
retained after the completion of the special work for which they were 
purchased, shall be credited to the accounts charged with the cost 
thereof. The appraised value of such machines retained shall be debited 
to this account and thereafter considered as the cost of such property.
    Note B: The cost of machines for the equipment of roadway shops 
shall be included in account 17, ``Roadway buildings.''
    Note C: The cost of roadway machines, such as pile drivers, log 
loaders, hoist engines, and concrete mixers, when permanently mounted 
for movement on the carrier's tracks, shall be included in account 57, 
``Work equipment.''
39  Public improvements; construction.
    This account shall include amounts assessed on carrier property by 
governmental authority (by mutual agreement or otherwise) to cover the 
cost of constructing public improvements, when such assessments are made 
against property within defined areas of taxing districts. The account 
also shall include carrier's portion of the cost of public improvements 
constructed under governmental requirements. (See instruction 2-17.) The 
entire amount of each assessment and other liabilities for public 
improvements shall be included in this account as soon as the amounts 
are determined.

                                  Items

Cost of land outside carrier's right-of-way to provide for the 
relocation of streets or highways or providing slopes therefor.
Cost of removal and relocation of buildings and other structures in 
connection with the construction of streets and highways.
Curbing streets and highways.
Damage to property of others when incidental to highway construction.
Drainage systems.
Engineering--When such costs apply to items chargeable to this account.
Flood protection.
Grading streets and highways.
Guttering streets and highways.
Irrigation systems.
Levees.
Overhead highway bridges, including approaches.
Paving streets and highways, including such pavings at crossings.
Planking, highway crossings.
Sewer systems.
Sidewalks.
Street-lighting systems.
Water works.
    Note A: The cost of railway facilities installed in connection with 
joint public improvement projects if not in excess of total costs borne 
by the carrier shall be included in accounts other than account 39, 
``Public improvements; construction,'' appropriate for the class of 
property installed. Any costs borne by the carrier in excess of the cost 
of railway facilities shall be charged to this account. The carrier 
shall charge the cost of assessments for public improvements which is 
borne by joint owner tenants to the appropriate property accounts other 
than account 39, ``Public improvements; construction,'' assessments from 
tenant owners shall be credited to account 795, ``Other capital.'' The 
owner tenants shall charge their proportionate share of the assessment 
to account 721, ``Investments and advances; affiliated companies.'' The 
carrier shall charge the appropriate property accounts other than the 
public improvement account for the cost of public improvement 
assessments borne by nonowner tenants with contra credit to account 38-
00-00, ``Purchased services--Joint facility--Credit,'' and the tenants 
shall charge their proportionate share of the assessments to account 37-
00-00, ``Purchased services--Joint facility--Debit.''
    Note B: The cost to the carrier of maintaining public improvements 
shall be included in operating expenses.
    Note C: Any portion of the cost of public improvements which is 
included in the general tax levy for a regular taxing district shall be 
included in the account appropriate for the taxes.
    Note D: The amount of the deferred payments of assessments for 
public improvements, if payments are to be made within one year, shall 
be included in account 763, ``Other current liabilities.'' If the 
payments are spread over a longer period they shall be credited to 
account 782, ``Other liabilities.'' The interest paid on such 
assessments shall be included in account 547, ``Interest on unfunded 
debt.''
    Note E: Interest imposed for failure to pay assessments within the 
allocated time shall be charged to Account 547, Interest on unfunded 
debt. Any related penalties shall be charged to Account 551, 
Miscellaneous income charges.
    Note F: Assessments on noncarrier property for the cost of 
constructing public improvements shall be charged to account 737,

[[Page 60]]

``Property used in other than carrier operations.''

[42 FR 35017, July 7, 1977, as amended at 52 FR 4326, Feb. 11, 1987]
44  Shop machinery.
    This account shall include the cost of machinery and other apparatus 
in shops and engine houses, including the cost of special foundations 
and installation and cost of small hand tools necessary first to equip a 
shop.

                         List of Shop Machinery

Ash conveyors.
Air compressors.
Belting.
Blowers.
Boilers for furnishing power.
Boring machines.
Cars, motor.
Cars, push.
Cranes.
Drilling machines.
Drop tables.
Forges.
Framing machines.
Furnaces.
Grinding and polishing machines.
Hoists.
Hydraulic jacks.
Lathes.
Lifting magnets.
Metal chimneys.
Milling machines.
Motors.
Pipe cutting and threading machines.
Planers.
Pneumatic hammers.
Power equipment.
Punches.
Riveters.
Saws.
Shafting.
Shapers.
Slotters.
Stationary engines.
Steam hammers.
Vises.
Welding machines.
Woodworking machines.
    Note A: The cost of power-plant machinery and other apparatus for 
shop purposes, when located in distinct buildings, shall be included in 
account 45, ``Power-plant machinery.''
    Note B: The cost of foundations other than those special to 
particular machines and other apparatus shall be included in the cost of 
the building and not in this account.
45  Power-plant machinery.
    This account shall include the cost of machinery and other apparatus 
in power plants and substations for generating and transforming power 
used for the operation of trains and cars or to furnish power, heat, and 
light for stations, shops, and general purposes, and also the cost of 
foundations special to particular machines or other apparatus including 
the cost of installation.

                                  Items

Air compressors.
Ash-conveying machinery.
Battery-charging apparatus.
Boiler-room appliances and tools.
Boilers and fittings.
Circuit breakers.
Furnaces.
Ice-manufacturing machinery and apparatus.
Lubricating devices.
Mechanical stokers.
Metal stacks on boilers.
Refrigerating--machinery and apparatus.
Rotary converters.
Sewer connection for machinery.
Coal-conveying machinery.
Condensers.
Cranes.
Draft machinery.
Dynamos.
Engine-room appliances and tools.
Feed water heaters.
Special foundations for machines.
Steam-distribution systems within the plant.
Switchboards.
Tanks.
Tractors, trailers, and trucks, permanently assigned to power plants.
Transformers.
Turbines.
Water meters.
Well pumps.
    Note A: The cost of power machinery and other apparatus installed in 
a shop as part of the shop equipment shall be included in account 44, 
``Shop machinery.''
    Note B: The cost of power machinery and other apparatus installed in 
station and office buildings shall be included in account 16, ``Station 
and office buildings.''
    Note C: The cost of buildings and the power machinery and other 
apparatus of plants used primarily for operating signals and 
interlockers shall be included in account 27, ``Signals and 
interlockers.''
    Note D: The cost of foundations other than those special to 
particular machines and other apparatus shall be included in the cost of 
the building and not in this account.
    Note E: The cost of machinery and buildings of detached plants for 
producing power both for operating purposes and for sale shall be 
included in this account and in account 29, ``Power plants,'' 
respectively. When plants are intended and used primarily for generating 
power for sale to noncarriers the

[[Page 61]]

investment shall be included in account 737, ``Property used in other 
than carrier operations.''



Equipment--Table of Contents




50  Equipment.
    The several primary accounts included in this general account are 
designed to show the cost of the several classes of equipment vehicles 
and shop and power plant equipment owned by the carrier, or held under 
equipment trust agreements or other contractual obligation for purchase 
of the property.
52  Locomotives.
    (a) This account shall include the cost of locomotives and tenders 
purchased or built by the carrier, and of appurtenances, furniture, and 
fixtures necessary to equip them for service, including the cost of 
inspection, setting up, and trying out after receipt from builders, and 
transportation charges to the carrier's line. This account may also 
include the cost of spare engines carried on hand for the purpose of 
temporarily replacing similar units removed from locomotives for 
overhaul, repair or other reason.
    (b) Records shall be maintained to reflect separately the investment 
cost of locomotives on the basis of their initial identification for 
depreciation purposes; i.e., road passenger, road freight, road 
switching and yard switching.

                  List of Appurtenances to Locomotives

Airbrake equipment and hose.
Arm rests.
Brake fixtures.
Cab cushions.
Clocks.
Fire-extinguishing apparatus.
Gongs.
Headlamps.
Metallic packing.
Pneumatic sanding equipment.
Radio equipment, permanently attached.
Seat boxes.
Signal lamps.
Speed recorders.
Steam-gauge lamps.
Steam-heat equipment and hose.
Storm doors.
Tool boxes.
Train-signal equipment and hose.
    Note: Cars with motor equipment are not to be classed as 
locomotives.
53  Freight-train cars.
    This account shall include the cost of freight-train cars of all 
classes, such as motor-driven cars, purchased or built by the carrier, 
including all appurtenances, furniture, and fixtures necessary to equip 
them for service, and the cost of inspection and transportation charges 
to the carrier's line.

                       List of Freight-Train Cars

Automobile.
Ballast (commercial).
Beer.
Box.
Cabin.
Caboose.
Charcoal.
Coal.
Coke.
Dump (commercial).
Express.
Flat.
Fruit.
Furniture.
Gondola.
Gondola (hopper).
Gondola (long).
Hay.
Lime.
Mail.
Oil tank.
Ore.
Logging.
Platform.
Polling.
Poultry.
Produce.
Rack.
Refrigerator.
Stock.
Tank and water (when used as commercial cars).

               List of Appurtenances to Freight-Train Cars

Air-brake equipment, including hose.
Cooking equipment and utensils.
Heating units.
Lamps and fixtures.
Loading devices.
Refrigeration units.
Seats.
Speed recorders.
Train-signal equipment, including hose.
Water tanks.

54  Passenger-train cars.
    This account shall include the cost of passenger-train cars of all 
classes, such as motor-driven cars, purchased or built by the carrier, 
including all appurtenances, furniture, and fixtures

[[Page 62]]

necessary to equip them for service, and cost of inspection and 
transportation charges to the carrier's line.

                      List of Passenger-Train Cars

Automobile.
Baggage.
Baggage-express.
Baggage-mail.
Baggage-mail-express.
Buffet.
Cafe, chair, and club.
Dining.
Library.
Milk.
Observation.
Parlor.
Parlor-baggage.
Passenger.
Passenger-baggage.
Passenger-baggage-mail.
Postal.
Refrigerator-express.
Sleeping.
Smoking.
Tourists.

              List of Appurtenances to Passenger-Train Cars

Air-brake equipment including hose.
Bedding.
Chairs.
Coat hooks.
Curtains and fixtures.
Cushions.
Electric bells.
Floor coverings.
Heating equipment.
Ice boxes.
Ice tanks.
Kitchen equipment and utensils.
Lighting equipment.
Mail catchers.
Parcel racks.
Ranges and boilers.
Seats.
Speed recorders.
Steam-heat hose.
Table china.
Table glassware.
Table linen.
Table silver.
Toilet equipment.
Train-signal equipment, including hose.
Water tanks.

55  Highway revenue equipment.
    (a) This account shall include the cost of highway vehicles used in 
revenue transportation service, including pickup and delivery service, 
substitute line-haul service, and TOFC/COFC service; also the cost of 
appurtenances (such as radio communication equipment) necessary to equip 
them for service, and the inspection and transportation costs and 
charges required for delivery of the vehicles into the carrier's revenue 
service.
    (b) Records shall be maintained to identify the carrier's investment 
in the following equipment, including appurtenances:

                    List of Highway Revenue Equipment

Bogies.
Buses.
Chassis.
Containers.
Semi-trailers.
Tractors.
Trailers.
Trucks.

           List of Appurtenances to Highway Revenue Equipment

Fire extinguishers.
Heating units.
Radio communication equipment.
Refrigeration units.
Rigging equipment.
Road dollies.
Tarpaulins.
    Note: The cost of trucks and tractors, which are used exclusively at 
TOFC/COFC terminals for loading and unloading trailers and containers on 
and from flat cars shall be charged to account 25, ``TOFC/COFC 
terminals.''

56  Floating equipment.
    This account shall include the cost of marine or floating equipment 
of all kinds except work equipment, purchased or built by the carrier, 
including all appurtenances, furniture, and fixtures necessary to equip 
it for service, and cost of inspection and transportation charges to the 
carrier's line.

                       List of Floating Equipment

Barges.
Canal boats.
Car and other floats.
Ferryboats.
Lighters.
Power launches.
Power lighters.
Scows.
Steam boats.
Steamships.
Transfer boats.
Tugboats.

               List of Appurtenances to Floating Equipment

Anchors.

[[Page 63]]

Barometers.
Beds and bedding.
Binnacle lamps.
Blocks and tackle.
China, crockery, and glassware.
Chronometers.
Compasses.
Desks and furniture.
Engines and foundations.
Fire buckets and extinguishers.
Floor coverings.
Gangplanks.
Heating equipment
Hoisting equipment.
Kitchen equipment.
Life preservers.
Lighting equipment.
Linen.
Logs.
Machinery and foundations.
Masts.
Boilers and foundations.
Cables.
Capstan bars.
Charts.
Pianos and other musical instruments.
Pumps.
Railings.
Rigging.
Scales.
Seats, chairs, and cushions.
Spyglasses and telescopes.
Steam distribution systems.
Steering equipment.
Ticket cases.
Tool boxes and tools.
Tracks on car floats.
Ventilating equipment.

57  Work equipment.
    This account shall include the cost of work equipment, including 
motor-driven equipment, purchased or built by the carrier; cost of 
appurtenances, furniture, and fixtures necessary to equip it for 
service; and cost of inspection and transportation charges to the 
carrier's line.

                       List of Rail Work Equipment

Air-brake instruction cars.
Ballast cars.
Ballast unloader cars.
Boarding cars.
Bridge cars.
Business cars.
Camp cars.
Cinder cars.
Concrete mixers (mounted).
Derrick cars.
Dirt spreaders (mounted).
Ditching cars.
Dump cars.
Dynamometer cars.
Gas tank cars.
Grading cars.
Gravel cars.
Indicator cars.
Locomotive tanks used permanently as water cars.
Locomotives.
Officers' cars.
Outfit cars.
Painters' cars.
Pay cars.
Pile drivers (mounted).
Rail cars.
Rail saws (mounted).
Salt cars.
Sanding cars.
Scale test cars.
Scraper cars.
Snow dozers.
Snow drags.
Snow plows (moved by but not attached to locomotives).
Sprinkling cars.
Steam shovels.
Steam wrecking derricks.
Supply cars.
Sweeper cars.
Tool cars.
Tool and block cars.
Water cars.
Weed burners (mounted).
Wrecking cars.

                     List of Floating Work Equipment

Derricks.
Dredges.
Pile drivers.

58  Miscellaneous equipment.
    (a) This account shall include the cost of automobiles, trucks and 
other highway equipment not used in revenue transportation service and 
not provided for elsewhere; the cost of airplanes; the cost of 
appurtenances (such as radio communication equipment) necessary to equip 
them for service; and the inspection and transportation costs and 
charges required for delivery of the vehicles to the carrier.
    (b) The cost of on and/or off-track automotive vehicles, which are 
permanently equipped with special-purpose machinery and used exclusively 
in maintenance of way and structures, shall be charged to account 37, 
Roadway machines.

                     List of Miscellaneous Equipment

Airplanes.
Automobiles.
Buses.
Emergency repair vehicles.
Road dollies.

[[Page 64]]

Semi-trailers.
Tractors.
Trailers.
Trucks.
Wreckers.

            List of Appurtenances to Miscellaneous Equipment

Fire extinguisher.
Radio communication equipment.
Rigging equipment.
Tarpaulins.

59 Computer systems and word processing equipment.
    This account shall include the cost of mainframe and mini-computers 
and data processing equipment as well as the cost of word processing 
equipment that is not dedicated to a particular function. Essentially 
this account consists of all computer-related equipment that remains 
under the control of the data processing department. This account shall 
also include the cost of foundations, power supply, fixtures, 
appurtenances and other devices to prepare this equipment for use.

                                  Items

    Mainframes, Mini-computers, Word processing systems, Printers, 
Monitors, Modems, Storage devices.
    Note A: The cost of micro computers, data processing equipment, and 
word processing equipment which are an integral part of and essential to 
the operation of a separate facility shall be charged to the appropriate 
property account for that facility.
    Note B: Carriers desiring to adopt other methods of accounting for 
computers and word processing equipment that are considered more 
suitable for their operational structure shall submit justification and 
supporting documents to the Board for consideration and decision.

[52 FR 4326, Feb. 11, 1987]



General Expenditures--Table of Contents




70  General expenditures.
    The primary accounts of this general account are designed to include 
expenditures made in connection with the acquisition and construction of 
original road and equipment, and with extension, additions, and 
betterments to road and equipment property, when such expenditures 
cannot properly be included in any of the foregoing accounts as a part 
of the cost of any specific work. When assignable, such expenditures 
shall be included in the cost of the property for which the expenditures 
occurred.
76  Interest during construction.
    (a) When any bonds, notes, or other evidences of indebtedness are 
sold, or any interest-bearing debt is incurred for acquisition and 
construction of original road and equipment, extensions, additions, and 
betterments, the interest accruing on the part of the debt representing 
the cost of property chargeable to road and equipment accounts (less 
interest, if any, allowed by depositaries on unexpended balances) after 
such funds become available for use and before the receipt or the 
completion or coming into service of the property so acquired shall be 
charged to this account.
    (b) When such securities are sold at a premium, the proportion of 
such premium assignable to the time between the date of the actual 
issuance of the securities and the time when the property acquired or 
the improvement made becomes available for service shall be credited to 
this account.
    (c) This account shall also include such proportion of the discount 
and expense on funded debt issued for the acquisition of original road, 
original equipment, road extensions, additions, and betterments, as is 
equitably assignable to the period between the date of the actual 
issuance of securities and the time when the property acquired or the 
improvement made become available for the service for which it is 
intended. The proportion of discount and expense thus chargeable shall 
be determined by the ratio between the period prior to the completion or 
coming into service of the facilities or improvements acquired and the 
period of the entire life of the securities issued.
    Note A: Interest on bonds, notes, or other evidences of indebtedness 
accruing before the proceeds from the sale of the securities become 
available for use shall not be included in this account, nor shall there 
be included any interest accruing after the property with respect to 
which the proceeds are expended is received or becomes available for use 
in connection with commercial service.
    Note B: If securities issued or assumed by the carrier are 
subsequently sold or exchanged by or for the carrier, the excess of

[[Page 65]]

the par value and accrued interest of the securities over the actual 
money value of the consideration received shall be deemed a discount. In 
no case (except as provided in the third paragraph of this account) 
shall discount be included as part of the cost of items included in the 
accounts prescribed in this classification.
    Note C: Whenever interest, premium, or discount assignable to the 
construction period is incurred in connection with an expenditure 
covered by some specific road and equipment account or accounts, such 
interest, premium, or discount shall be charged directly to the specific 
accounts to which it is related. Unless provided for otherwise, interest 
costs shall be capitalized in accordance with generally accepted 
accounting principles.
    Note D: This account shall not include interest during the 
construction period on the carrier's own funds expended in connection 
with the acquisition or construction of original road and equipment, 
extensions, additions, and betterments.

(5 U.S.C. 553; 49 U.S.C. 10321)

[42 FR 35017, July 7, 1977, as amended at 46 FR 10920, Feb. 5, 1981]



Other Property Accounts--Table of Contents




80  Other elements of investment.
    (a) This account shall include amounts resulting from adjustment of 
the primary property accounts to conform with cost of property in 
valuation records. The amount in this account shall be cleared on a 
consistent basis as property is retired from service or otherwise in 
accordance with the rules in paragraphs (b), (c), and (d) of this 
account. Any material amount in this account assignable to property 
previously retired from service shall be cleared immediately.
    (b) When property is retired from service, an equitable portion of 
the balance in this account assignable to such property shall be cleared 
when the retirement entry is made. The amount so cleared, when a debit, 
shall be charged to account 551, Miscellaneous income charges, or, when 
a credit, shall be recorded in account 519, Miscellaneous income. The 
exception to this general rule with respect to a credit balance 
assignable to property retired is that when property classified as 
depreciable is retired from service and the balance in the accumulated 
depreciation account for the property is materially deficient, because 
of sudden retirement or other unusual cause, the portion of a credit 
balance cleared for the retirement, equal to the deficiency, shall be 
applied to reduce the amount of loss otherwise chargeable to the 
accumulated depreciation account.
    (c) A carrier may apply to the Board for authority to clear the 
entire balance from this account immediately or amortize the balance 
over a short period of time by appropriate inclusion in account 616, 
Other debits to retained earnings, or account 606 Other credits to 
retained earnings. Any amount so authorized or directed by the Board to 
be cleared and written off to retained income shall be in lieu of 
amounts includible in accounts indicated in paragraph (b).
    (d) Other plans for clearance, disposition, or classification of a 
balance in this account in conformity with sound accounting principles 
may be submitted to the Board with suitable details for consideration. 
This includes application for disposition of a balance in this account 
attributable to reduction of capitalization in a reorganization. An 
accounting procedure so applied for shall become effective only after 
Board approval. Each carrier shall maintain a record of items initially 
included in and cleared later from this account and the basis used in 
computing such items.
    Note: The amounts attributable to past mergers, consolidations and 
purchases of property included in this account shall be merged with the 
adjustment made pursuant to paragraph (a) of this text.
90  Construction in progress.
    This account shall include expenditures incurred by the carrier in 
the process of constructing road and equipment with its own forces or 
under contract during the period prior to the time property is placed in 
transportation operations, including cost of materials and supplies 
located at point of use and of necessary land acquired for such 
projects. When a project is completed or when a segment of a large 
project is completed and placed in service, the cost of the completed 
project or the completed segment thereof shall be transferred to the 
appropriate road and equipment primary accounts. Separate subaccounts 
may be maintained

[[Page 66]]

for road, equipment, or other classes of expenditures. Expenditures for 
relatively unimportant projects may be included directly in primary 
accounts.



RAILWAY OPERATING REVENUE ACCOUNTS--Table of Contents






Transportation Revenue Accounts--Table of Contents




100  Transportation; rail line.
    The primary accounts included in this general account are designed 
to show amounts of money which the carrier becomes entitled to receive 
or which accrue to its benefit from services rendered in transporting 
property or persons by rail line. The detail accounts include in this 
general account series are summarized in account 501, Railway Operating 
Revenues.

[42 FR 35017, July 7, 1977, as amended at 52 FR 4326, Feb. 11, 1987]
101  Freight.
    (a) This account shall include revenue from the transportation of 
freight and from transit, stop, and reconsigning privileges, upon the 
basis of lawful tariff rates.
    (b) This account shall include collections in excess of tariff 
charges, except where such amounts are segregated and held subject to 
refund.
    (c) Proceeds derived from the sale of unclaimed and refused freight 
which has been transported in accordance with the contract of shipment 
shall be credited to this account in cases where such items can be 
readily identified. Uncollected tariff charges on such shipments shall 
be charged to this account.
    (d) Amounts determined to be uncollectible shall be accounted for in 
accordance with the text of account 63-61-00 General--Uncollectible 
accounts.

                          Items To Be Credited

    (a) Revenue upon the basis of local freight tariff rates, regardless 
of class of train in which the freight is transported.
    (b) The carrier's proportion of revenue upon the basis of through 
freight tariff rates, regardless of class of train on which the freight 
is transported.
    (c) Revenue from transportation of mail matter, and empty mail 
pouches, at freight rates.
    (d) Revenue from transportation of freight on special trains at 
rates based on weights of shipments.
    (e) Revenue on basis of classifications and freight tariffs from 
transportation of caretakers of freight shipments.
    (f) Revenue from reconsigning privileges.
    (g) Revenue from stop privileges.
    (h) Revenue from transit privileges.
    (i) Revenue upon the basis of arbitraries out of freight, rates for 
water transfers (ferriage, lighterage, and floatage).
    (j) Revenue from transportation of trailers and containers on flat 
cars in TOFC/COFC service upon the basis of all-rail line-haul freight 
tariff rates and under arrangements for motor carrier-railroad joint 
haul, and from the loading and unloading of trailers and containers on 
and from flat cars upon the basis of tariff rates and under arrangements 
for motor carrier-railroad joint haul.

                           Items To Be Charged

    (a) Amounts paid as bridge and ferry arbitraries on freight.
    (b) Amounts paid for completing a haul.
    (c) Amounts paid for elevation of freight.
    (d) Amounts paid for switching services, in connection with the 
transportation of freight, on the basis of switching tariffs, and 
allowances out of through rates, including amounts paid for switching 
empty cars in connection with a freight revenue movement.
    (e) Amounts paid for transferring freight between stations.
    (f) Arbitraries and allowances to others for lighterage and 
wharfage.
    (g) The carrier's proportion of overcharges resulting from the use 
of erroneous rates, weights, classifications or computations.
    (h) The carrier's proportion of refunds on account of errors in 
routing and billing.
    (i) The carrier's proportion of uncollected revenue on freight lost 
or destroyed in transit.
    (j) The carrier's proportion of uncollected tariff charges on 
damaged shipments for which charges neither shipper nor consignee is 
liable.
    (k) Amounts paid on basis of tariff rates for loading and unloading 
livestock.
    (l) Amounts paid to motor truck companies for hauling trailers and 
containers to and from TOFC/COFC terminals, and allowances to shippers 
who perform such service on the basis of tariff rates.
    Note A: Amounts paid for switching empty cars other than in 
connection with loaded movements shall be charged to operating expense 
account 61-32-XX, ``General--Other Expenses--Transportation--Yard-- 
Freight,'' except that amounts paid for switching equipment for repairs 
shall be included in the appropriate equipment repair accounts.
    Note B: Other carriers' proportion of revenue and of uncollectible 
undercharges paid

[[Page 67]]

by the carrier on account of its errors in routing and billing shall be 
charged to operating expense account 61-35-76, ``General--Other 
Expenses--Transportation--Administrative Support.''
    Note C: When a lessee company transports freight over the tracks of 
another carrier on the basis of a proportion of revenues under a joint 
arrangement, it shall include the entire compensation in its revenues 
and statistics, charging the appropriate joint facility expense and 
rental accounts with the amounts paid the lessor company, and the lessor 
company shall credit the corresponding accounts.
    Note D: Revenue from the transportation of caretakers of freight 
shipments, when not included as a part of the freight charges on the 
waybill covering the freight shipments, shall be credited to account 
102, ``Passenger.''
    Note E: This account shall be maintained so as to show separately 
payments and allowances for (a) terminal collection and delivery 
services when performed in connection with line-haul transportation of 
freight on the basis of freight tariff rates, further separated between 
(1) TOFC/COFC service, and (2) all other freight service; also (b) 
payments for switching services when performed in connection with line-
haul transportation of freight on the basis of switching tariffs and 
allowances out of freight rates, including the switching of empty cars 
in connection with a revenue movement, and (c) payments on basis of 
tariff rates for loading and unloading livestock.
102  Passenger.
    This account shall include the revenue from transportation of 
passengers at passenger tariff fares, from the transportation of 
passengers at special fares as provided by law, and from incidental 
charges in connection therewith.

                          Items To Be Credited

    (a) Revenue from local passenger fares.
    (b) The carrier's proportion of revenue from interline passenger 
fares.
    (c) Revenue from extra fares.
    (d) Revenue from additional fares or charges for exclusive use of a 
passenger car, drawing room, compartment, bedroom, etc.
    (e) Revenue from mileage and scrip coupons honored for all services 
covered by this account.
    (f) Revenue from transportation of passengers in special cars or on 
special trains when charge is based on passenger fare per capita, 
regardless of the number of passengers actually transported.
    (g) Revenue from a guaranteed minimum amount not based on per capita 
fare, for transportation of passengers on special or chartered trains.
    (h) Cash fare penalty collections.
    (i) Unclaimed collections and deposits for transportation of 
passengers.
    (j) Passenger fare overcharges.
    (k) Revenue from transportation of corpses, based on passenger 
fares.
    (l) Revenue from water transfers (ferriage), bridge tolls, and 
transfers between railway stations or between railway stations and 
docks, received as arbitraries in divisions of passenger fares.

                           Items To Be Charged

    (a) Amounts paid as bridge tolls, and also for ferry, depot to depot 
and depot to dock passenger transfer service.
    (b) Amounts paid for switching in completing a passenger 
transportation movement.
    (c) Amounts paid for switching empty passenger-train cars in 
connection with transportation of passengers. (See note C.)
    (d) Redemptions of unused and partially unused local tickets and 
redemptions of carrier's proportions of unused and partially unused 
interline tickets.
    (e) Refund of extra fares, cash fare penalty collections, and 
overcharges in excess of tariff fares.
    (f) Uncollectible undercharges.
    Note A: Gross receipts from the sale of mileage tickets, and scrip 
books shall be credited to a suspense account. The suspense account 
shall be charged and this account credited with the value of coupons as 
honored, in connection with any of the services provided for in Items To 
Be Credited.
    Note B: When a lessee company transports passengers over the tracks 
of another company under a joint arrangement upon the basis of a 
proportion of the passenger revenue, it shall include the entire 
compensation in its passenger revenue and statistics, charging the 
appropriate joint facility expense and rental accounts with the amounts 
paid the lessor company and the lessor company shall credit the 
corresponding joint facility accounts.
    Note C: Amounts paid for switching empty passenger-train cars other 
than in connection with loaded movements, shall be charged to account 
61-42-XX. General--Other Expenses--Transportation--Yard--Passenger, 
except that when switched for repairs, the amounts paid shall be 
included in account 39-25-45, Purchased Services--Repairs Billed by 
Others--Equipment--Other Equipment.
    Note D: Amounts determined to be uncollectible shall be accounted 
for in accordance with the text of account 63-62-00, General--
Uncollectible accounts.

[[Page 68]]

103  Passenger-related.
    This account shall include the revenue from the transportation of 
baggage, packages, etc. on passenger trains at other than freight or 
express tariff rates. This account shall also include the revenue from 
berth and seat accommodations furnished in sleeping, parlor observation, 
chair, and other special passenger cars, also the revenue derived from 
the operation of passenger trains not provided for elsewhere, and dining 
and buffet service.

The amounts recorded in this account shall not include aid in the form 
of abatement or forgiveness of taxes, assumption by local governments of 
station maintenance costs, and other similar special indirect benefits, 
contributed by governmental agencies.
104  Switching.
    (a) This account shall include the revenue from switching service 
upon the basis of lawful tariff rates. To this account shall be credited 
the carrier's revenue upon the basis of tariff rates, or the carrier's 
allowance out of through rates, from the switching of cars of all kinds, 
loaded or empty, either locally at a station or within a switching 
district, between connecting lines, between local industries, or between 
connecting lines and local industries; revenue upon the basis of 
distinct tariff rates for trapcar and ferry-car service and for spotting 
cars; also the revenue from interwork switching at industrial plants, 
and the revenue from penalty switching incident to the improper delivery 
of cars by other carriers.
    (b) To this account shall be charged amounts paid others for 
switching when such switching service is provided for in the switching 
rate charged by the carrier.
    Note: Penalty switching charges paid by the carrier shall be 
included in expense account 61-32-XX, General--Other Expenses--
Transportation--Yard--Freight.
105  Water transfers.
    (a) This account shall include the revenue, from the transfer by 
water (ferriage, lighterage, and floatage) of passenger, freight, 
vehicles and livestock, upon the basis of lawful local tariff rates.
    (b) This account also shall include revenue from water transfers of 
other traffic, such as the revenue from towing beyond lighterage limits 
and all other towing for which an extra charge is made; insurance of 
freight afloat when billed out at other than cost; storage of freight 
afloat; grain overage in boats; pumping performed for outside parties; 
and from other similar sources.
    (c) To this account shall be charged amounts payable to other 
companies or individuals for extra lighterage, extra towing, and for all 
other service when such payments represent revenue collected and 
credited to this account and not a direct expense.
    Note: No revenue shall be included in this account for water 
transfers of passengers or shipments upon the basis of arbitraries out 
of rates for transportation involving rail line haul.
106  Demurrage.
    This account shall include the revenue from the detention of cars 
incident to loading, unloading, reconsigning, and stops in transit upon 
the basis of lawful tariffs for demurrage. This account shall also 
include the revenue from the detention of trailers and containers used 
in TOFC/COFC service, incident to loading and unloading, upon the basis 
of tariff rates.
    Note: This account shall be maintained so as to reflect separately 
(1) revenue from detention of cars, and (2) revenue from detention of 
trailers and containers used in TOFC/COFC service.
110  Incidental.
    This account is designed to show the amounts which the carrier 
becomes entitled to receive from services rendered incidentally with 
rail-line and water-line transportation; for the use of facilities of 
which the expenses for operation and maintenance are not separable from 
railway expenses and from incidental sources not provided for elsewhere. 
Among the items included in this account are revenues derived from (1) 
hotels and restaurants, (2) operations conducted at stations and on 
trains by individual or companies other than railway companies, (3) 
storage, (4) the sale of electric power, (5) renting property operated 
and maintained in connection with the property used in

[[Page 69]]

the carrier's transportation operations and from railway operations not 
provided for elsewhere.



Joint Facility Revenue Accounts--Table of Contents




120  Joint facility.
    The primary accounts included in this general account are designed 
to show the carrier's proportion of revenues collected by others in 
connection with operation of joint facilities and the amount payable by 
the carrier to other companies from operation of joint facilities.
121  Joint facility--credit.
    This account shall include the carrier's proportion of revenue 
collected by others in connection with the operation of joint tracks, 
yards, terminals, and other facilities, including revenue from hotels, 
restaurants, grain elevators, sale of power, and other miscellaneous 
operations.
    Note A: The purpose of this account is to show the amounts of 
revenue from the operation of joint tracks, yards, terminals and other 
facilities operated by other companies, which under existing contracts 
or agreements are credited by the operating company to the tenant 
companies which participate therein. The bill rendered by any creditor 
company against a debtor company for the latter's proportion of the 
expense of maintenance and operation of joint facilities, which includes 
also a credit covering a proportion of the revenue to be paid over, 
shall show the distribution of the credit for such proportion of the 
revenue separately from the distribution of the expense of operation.
    Note B: No credits shall be made to this account representing 
amounts creditable by the operating company to primary accounts 101-103, 
105 and 110.
122  Joint facility--debit.
    This account shall include that proportion of revenue from the 
operation of joint tracks, yards, terminals, and other facilities, which 
is creditable to other companies, including revenue from hotels, 
restaurants, grain elevators, sale of power, and other miscellaneous 
operations.
    Note A: The purpose of this account is to show the amount of revenue 
from operation of a terminal company or other carrier which, under the 
terms of existing contracts or agreements covering the joint use of 
tracks, yards, and other facilities, is credited to other carriers that 
participate in the benefits from such joint use. The bill rendered by a 
creditor company against a debtor company for the latter's proportion of 
expense of maintaining and operating joint facilities, which includes a 
credit covering the debtor company's proportion of the revenues from 
operation of such joint facilities, shall indicate separately the proper 
distribution of both the revenues and the expenses included in the bill, 
and such distribution shall be adhered to by the debtor.
    Note B: No debits shall be made to this account representing amounts 
creditable by the operating company to primary accounts 101-103, 105 and 
110.



OPERATING EXPENSE ACCOUNTS--Table of Contents




    Source: 52 FR 4326, Feb. 11, 1987, unless otherwise noted.

                               Instruction

    (1) The operating expense accounts use a six-digit code. The first 
two digits denote natural expense, the second two digits denote 
activity/subactivity, and the third two digits denote detailed 
functions. [See Table A for an overview of the coding structure and 
Tables B-E for detailed functions.]
    (2) The operating expense account explanations use a three-tier 
format. Section 1 contains natural expense explanations with applicable 
activity/subactivity and function assignment. Section 2 details the 
activity/subactivity explanations. Section 3 explains the functions 
appropriate for each activity/subactivity. To obtain a complete 
explanation for a particular account, refer to section 1 to locate the 
natural expense and activity/subactivity (first four digits) and read 
the appropriate account text. Accounts that are assigned to functions 
are appropriately listed. For further information, refer to section 2 
and section 3.
    (3) All accounts listed in Table A and section 1 are for freight 
only. Refer to Table F for applicable passenger or common account codes. 
Account numbers designated with an asterisk in section 1 denote freight 
only accounts, while other accounts are used for both freight and 
passenger or common accounts.
    (4) All expense assigned to common operating accounts shall be 
allocated

[[Page 70]]

to freight and passenger accounts in accordance with Part 1242 of this 
chapter.

[[Page 71]]



                                                              Table A--Coding Structure for Railway Operating Expense Accounts \1\
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                     XX-00     Way and structures XX-10           Equipment XX-20                      Transportation XX-30, 40, 50                    XX-60
                                                   ---------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                             Train
                                                                                                      Freight    Other                        and    Specialized  Administrative    General and
                                                    Control  Running  Switching   Other   Locomotive    cars   equipment   Train     Yard     yard       SVDS         support     administrative
                                                                                                                                             common
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Freight \2\.......................................    XX-00    XX-11     XX-12     XX-13      XX-21     XX-22     XX-23     XX-31    XX-32    XX-33      XX-34          XX-35           XX-61
Personnel.........................................    10-00  .......  .........  .......  ..........  .......  .........  .......  .......  .......  ...........  ..............  ..............
    Salaries and wages............................    11-00  \3\ 11-
                                                                  11  \3\ 11-12  \3\ 11-
                                                                                      13  \3\ 11-21   \3\ 11-
                                                                                                           22     11-23   \3\ 11-
                                                                                                                               31  \3\ 11-
                                                                                                                                        32  \3\ 11-
                                                                                                                                                 33  \3\ 11-34      \3\ 11-35       \3\ 11-61
    Fringe benefits...............................    12-00    12-11     12-12     12-13      12-21     12-22     12-23     12-31    12-32    12-33      12-34          12-35           12-61
Materiel..........................................    20-00  .......  .........  .......  ..........  .......  .........  .......  .......  .......  ...........  ..............  ..............
    Materiel, tools, supp, fuel, lubricants.......    21-00  \3\ 21-
                                                                  11  \3\ 21-12  \3\ 21-
                                                                                      13  \3\ 21-21   \3\ 21-
                                                                                                           22  \3\ 21-23  \3\ 21-
                                                                                                                               31  \3\ 21-
                                                                                                                                        32  \3\ 21-
                                                                                                                                                 33  \3\ 21-34      \3\ 21-35       \3\ 21-61
Purchased services................................    30-00  .......  .........  .......  ..........  .......  .........  .......  .......  .......  ...........  ..............  ..............
    Lease rentals--DR.............................    31-00    31-11     31-12     31-13      31-21     31-22     31-23   .......  .......  .......  ...........  ..............  ..............
    Lease rentals--CR.............................    32-00    32-11     32-12     32-13      32-21     32-22     32-23   .......  .......  .......  ...........  ..............  ..............
    Jt. Fac. Rent--DR.............................    33-00    33-11     33-12     33-13      33-21     33-22     33-23   .......  .......  .......  ...........  ..............  ..............
    Jt. Fac. Rent--CR.............................    34-00    34-11     34-12     34-13      34-21     34-22     34-23   .......  .......  .......  ...........  ..............  ..............
    Other rents--DR...............................    35-00    35-11     35-12     35-13      35-21     35-22     35-23   .......  .......  .......  ...........  ..............  ..............
    Other rents--CR...............................    36-00    36-11     36-12     36-13      36-21     36-22     36-23   .......  .......  .......  ...........  ..............  ..............
    Jt. facility--DR..............................    37-00    37-11     37-12     37-13      37-21     37-22     37-23     37-31    37-32  .......      37-34          37-35           37-61
    Jt. facility--CR..............................    38-00    38-11     38-12     38-13      38-21     38-22     38-23     38-31    38-32  .......      38-34          38-35           38-61
    Repairs billed by others--DR..................    39-00  \3\ 39-
                                                                  11  \3\ 39-12  \3\ 39-
                                                                                      13  \3\ 39-21   \3\ 39-
                                                                                                           22  \3\ 39-23  .......  .......  .......  ...........  ..............  ..............
    Repairs billed to others--CR..................    40-00  \3\ 40-
                                                                  11  \3\ 40-12  \3\ 40-
                                                                                      13  \3\ 40-21   \3\ 40-
                                                                                                           22  \3\ 40-23  .......  .......  .......  ...........  ..............  ..............
    Other purchase services.......................    41-00  \3\ 41-
                                                                  11  \3\ 41-12  \3\ 41-
                                                                                      13  \3\ 41-21   \3\ 41-
                                                                                                           22  \3\ 41-23  \3\ 41-
                                                                                                                               31  \3\ 41-
                                                                                                                                        32  \3\ 41-
                                                                                                                                                 33  \3\ 41-34      \3\ 41-35       \3\ 41-61
Claims and insurance..............................    50-00  .......  .........  .......  ..........  .......  .........  .......  .......  .......  ...........  ..............  ..............
    Loss damage claims............................    51-00  .......  .........  .......  ..........  .......  .........    51-31    51-32    51-33      51-34    ..............  ..............
    Other casualties..............................    52-00    52-11     52-12     52-13      52-21     52-22     52-23     52-31    52-32  .......      52-34          52-35           52-61
    Insurance.....................................    53-00    53-11     53-12     53-13      53-21     53-22     53-23     53-31    53-32  .......      53-34          53-35           53-61
General...........................................    60-00  .......  .........  .......  ..........  .......  .........  .......  .......  .......  ...........  ..............  ..............
    Other expenses................................    61-00  \3\ 61-
                                                                  11  \3\ 61-12  \3\ 61-
                                                                                      13  \3\ 61-21   \3\ 61-
                                                                                                           22  \3\ 61-23  \3\ 61-
                                                                                                                               31  \3\ 61-
                                                                                                                                        32  .......  \3\ 61-34      \3\ 61-35       \3\ 61-61
    Depreciation..................................    62-00    62-11     62-12     62-13      62-21     62-22     62-23   .......  .......  .......  ...........  ..............  ..............
    Uncollectible account.........................    63-00  .......  .........  .......  ..........  .......  .........  .......  .......  .......  ...........  ..............        63-61
    Property taxes................................    64-00  .......  .........  .......  ..........  .......  .........  .......  .......  .......  ...........  ..............        64-61
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ Each operating expense account has a six-digit code divided into three two-digit groups. The first two-digit group denotes the natural expense [see control column], the second group
  denotes the activity/subactivity for freight, passenger or common service [see Table F]; and the third group signifies applicable function assignment [see Tables B, C, D & E].
\2\ The account numbers shown on this matrix are for freight only. The account numbers for passenger and common are derived by applying the natural expense code (first two digits) to the
  activity codes shown in Table F. Natural expenses are used only in the same activities as shown for freight.
\3\ Expenses shall be reported by applicable functions [see account text].


[[Page 72]]


                                 Table B--Function Code Use--Way and Structures
----------------------------------------------------------------------------------------------------------------
                                                                       Running        Switching        Other
 Code                           Functions                         ----------------------------------------------
                                                                   \1\ F   P    C    F    P    C    F    P    C
----------------------------------------------------------------------------------------------------------------
  ....                        ADMINISTRATION
02  ..  Track....................................................  .....  ...  ...  ...  ...  ...    X    X    X
03  ..  Bridges and buildings....................................  .....  ...  ...  ...  ...  ...    X    X    X
04  ..  Signals..................................................  .....  ...  ...  ...  ...  ...    X    X    X
05  ..  Communications...........................................  .....  ...  ...  ...  ...  ...    X    X    X
06  ..  Other....................................................  .....  ...  ...  ...  ...  ...    X    X    X
  ....                   REPAIRS AND MAINTENANCE
10  ..  Roadway..................................................     X     X    X    X    X    X  ...  ...  ...
11  ..  Tunnels and subways......................................     X     X    X    X    X    X  ...  ...  ...
12  ..  Bridges and culverts.....................................     X     X    X    X    X    X  ...  ...  ...
13  ..  Ties.....................................................     X     X    X    X    X    X  ...  ...  ...
14  ..  Rails and other track material...........................     X     X    X    X    X    X  ...  ...  ...
16  ..  Ballast..................................................     X     X    X    X    X    X  ...  ...  ...
19  ..  Signals and interlockers.................................     X     X    X    X    X    X  ...  ...  ...
20  ..  Communication systems....................................  .....  ...  ...  ...  ...  ...    X    X    X
21  ..  Power systems............................................  .....  ...  ...  ...  ...  ...    X    X    X
22  ..  Highway grade crossings..................................     X     X    X    X    X    X  ...  ...  ...
23  ..  Station and office buildings.............................  .....  ...  ...  ...  ...  ...    X    X    X
24  ..  Shop bldgs.--Locomotives.................................  .....  ...  ...  ...  ...  ...    X    X    X
25  ..  Shop bldgs.--Freight cars................................  .....  ...  ...  ...  ...  ...    X
26  ..  Shop bldgs.--Other equipment.............................  .....  ...  ...  ...  ...  ...    X    X    X
27  ..  Locomotive servicing facilities..........................  .....  ...  ...  ...  ...  ...    X    X    X
28  ..  Misc. buildings and structures...........................  .....  ...  ...  ...  ...  ...    X    X    X
29  ..  Coal terminals...........................................  .....  ...  ...  ...  ...  ...    X
30  ..  Ore terminals............................................  .....  ...  ...  ...  ...  ...    X
31  ..  TOFC/COFC terminals......................................  .....  ...  ...  ...  ...  ...    X
32  ..  Other marine terminals...................................  .....  ...  ...  ...  ...  ...    X
33  ..  Motor vehicle loading and distribution facilities........  .....  ...  ...  ...  ...  ...    X
35  ..  Facilities--Other specialized services operations........  .....  ...  ...  ...  ...  ...    X
36  ..  Roadway machines.........................................  .....  ...  ...  ...  ...  ...    X    X    X
37  ..  Small tools and supplies.................................  .....  ...  ...  ...  ...  ...    X    X    X
38  ..  Snow removal.............................................  .....  ...  ...  ...  ...  ...    X    X    X
39  ..  Dismantling retired property.............................     X     X    X    X    X    X    X    X    X
48  ..  Road property damaged....................................     X     X    X    X    X    X    X    X    X
  ....                            OTHER
99  ..  Other....................................................     X     X    X    X    X    X    X    X    X
----------------------------------------------------------------------------------------------------------------
\1\ F--Freight; P--Passenger; C--Common.


                                      Table C--Function Code Use--Equipment
----------------------------------------------------------------------------------------------------------------
                                                                      Locomotives    Freight Cars      Other
                                                                   -------------------------------   Equipment
 Code                            Functions                                                        --------------
                                                                    \1\F   P    C    F    P    C    F    P    C
----------------------------------------------------------------------------------------------------------------
  ....                        ADMINISTRATION
01....  Administration............................................     X    X    X    X  ...  ...    X    X    X
  ....                    REPAIR AND MAINTENANCE
39....  Dismantling retired property..............................     X    X    X    X  ...  ...    X    X    X
41....  Locomotives...............................................     X    X    X  ...  ...  ...  ...  ...  ...
42....  Freight cars..............................................  ....  ...  ...    X  ...  ...  ...  ...  ...
43....  Trucks, trailers, containers in revenue service...........  ....  ...  ...  ...  ...  ...    X  ...  ...
44....  Floating equipment in revenue service.....................  ....  ...  ...  ...  ...  ...    X  ...  ...
45....  Passenger and other revenue equipment.....................  ....  ...  ...  ...  ...  ...    X    X    X
46....  Computer systems and word processing equipment............  ....  ...  ...  ...  ...  ...    X    X    X
47....  Work and other nonrevenue equipment.......................  ....  ...  ...  ...  ...  ...    X    X    X
48....  Equipment damaged.........................................     X    X    X    X  ...  ...    X    X    X
49....  Shop machinery--locomotives...............................  ....  ...  ...  ...  ...  ...    X    X    X
50....  Shop machinery--freight cars..............................  ....  ...  ...  ...  ...  ...    X    X    X
51....  Shop machinery--other equipment...........................  ....  ...  ...  ...  ...  ...    X    X    X
99....  Other.....................................................     X    X    X    X  ...  ...    X    X    X
----------------------------------------------------------------------------------------------------------------
\1\ F--Freight; P--Passenger; C--Common.


[[Page 73]]


                                   Table D--Function Code Use--Transportation
----------------------------------------------------------------------------------------------------------------
                                          Train           Yard        Train and     Specialized   Administrative
                                     ------------------------------  yard common      services        support
 Code                                                              ---------------------------------------------
                                       *F   P    C    F    P    C    F    P    C    F    P    C     F    P    C
----------------------------------------------------------------------------------------------------------------
  ....         ADMINISTRATION
01....    ..........................    X    X    X    X    X    X  ...  ...  ...    X  ...  ...     X    X    X
  ....           OPERATIONS
56....  Engine......................    X    X    X  ...  ...  ...  ...  ...  ...  ...  ...  ...  ....  ...  ...
57....  Train crews.................    X    X    X  ...  ...  ...  ...  ...  ...  ...  ...  ...  ....  ...  ...
58....  Dispatching trains..........    X    X    X  ...  ...  ...  ...  ...  ...  ...  ...  ...  ....  ...  ...
59....  Operating switches, signals,
         interlockers, retarders,
         humps......................    X    X    X    X    X    X  ...  ...  ...  ...  ...  ...  ....  ...  ...
60....  Operating drawbridges.......    X    X    X  ...  ...  ...  ...  ...  ...  ...  ...  ...  ....  ...  ...
61....  Highway crossing protection.    X    X    X  ...  ...  ...  ...  ...  ...  ...  ...  ...  ....  ...  ...
62....  Train inspection and
         lubrication................    X    X    X  ...  ...  ...  ...  ...  ...  ...  ...  ...  ....  ...  ...
63....  Clearing wrecks.............    X    X    X    X    X    X  ...  ...  ...  ...  ...  ...  ....  ...  ...
64....  Switch crews................  ...  ...  ...    X    X    X  ...  ...  ...  ...  ...  ...  ....  ...  ...
65....  Controlling operations......  ...  ...  ...    X    X    X  ...  ...  ...  ...  ...  ...  ....  ...  ...
66....  Yard and terminal clerical..  ...  ...  ...    X    X    X  ...  ...  ...  ...  ...  ...  ....  ...  ...
67....  Locomotive fuel.............    X    X    X    X    X    X  ...  ...  ...  ...  ...  ...  ....  ...  ...
68....  Power purchased/produced for
         motive power...............    X    X    X    X    X    X  ...  ...  ...  ...  ...  ...  ....  ...  ...
69....  Servicing locomotives.......    X    X    X    X    X    X  ...  ...  ...  ...  ...  ...  ....  ...  ...
70....  Cleaning car interior.......  ...  ...  ...  ...  ...  ...    X    X    X  ...  ...  ...  ....  ...  ...
71....  Adjusting, transferring
         loads......................  ...  ...  ...  ...  ...  ...    X  ...  ...  ...  ...  ...  ....  ...  ...
72....  Car loading devices and
         grain doors................  ...  ...  ...  ...  ...  ...    X  ...  ...  ...  ...  ...  ....  ...  ...
73....  Pick up and delivery, marine
         haul, rail substitute
         service....................  ...  ...  ...  ...  ...  ...  ...  ...  ...    X  ...  ...  ....  ...  ...
74....  Loading, unloading, local
         marine.....................  ...  ...  ...  ...  ...  ...  ...  ...  ...    X  ...  ...  ....  ...  ...
75....  Protective services.........  ...  ...  ...  ...  ...  ...  ...  ...  ...    X  ...  ...  ....  ...  ...
76....  Clerks and accounting
         employees..................  ...  ...  ...  ...  ...  ...  ...  ...  ...  ...  ...  ...     X    X    X
77....  Communications systems
         operations.................  ...  ...  ...  ...  ...  ...  ...  ...  ...  ...  ...  ...     X    X    X
78....  Loss and damage claims
         processing.................  ...  ...  ...  ...  ...  ...  ...  ...  ...  ...  ...  ...     X    X    X
  ....              OTHER
99....  Other.......................    X    X    X    X    X    X  ...  ...  ...    X  ...  ...     X    X    X
----------------------------------------------------------------------------------------------------------------


[[Page 74]]


        Table E--Functional Code Use--General and Administrative
------------------------------------------------------------------------
 Code             Functions             Freight    Passenger    Common
------------------------------------------------------------------------
  ....         ADMINISTRATION
  ....  Administration..............           X           X           X
  ....             GENERAL
86....  Accounting, auditing,
         finance....................           X           X           X
87....  Management services and data
         and word processing........           X           X           X
88....  Marketing...................           X           X           X
89....  Sales.......................           X           X           X
90....  Industrial development......           X
91....  Personnel, labor relations..           X           X           X
92....  Legal and secretarial.......           X           X           X
93....  Public relations and
         advertising................           X           X           X
94....  Research and development....           X           X           X
  ....              OTHER
99....  Other.......................           X           X           X
------------------------------------------------------------------------


                 Table F--Activity/Subactivity Code Use
------------------------------------------------------------------------
                                                    Code
       Activity/subactivity          Freight     passenger      Common
------------------------------------------------------------------------
Way and structures:
    Running......................           11           14           17
    Switching....................           12           15           18
    Other........................           13           16           19
Equipment:
    Locomotives..................           21           24           26
    Freight cars.................           22          N/A          N/A
    Other........................           23           25           27
Transportation:
    Train........................           31           41           51
    Yard.........................           32           42           52
    Train and yard common........           33           43           53
    Specialized services.........           34          N/A          N/A
    Administrative support.......           35           45           55
General and administrative.......           61           62           63
------------------------------------------------------------------------



OPERATING EXPENSE ACCOUNTS--Table of Contents




                Section 1--Natural Expense Explanations*



Personnel--Table of Contents




Control--10-00-00
    This account may be used as a control account for all accounts in 
the Personnel Series: Salaries and Wages. Fringe Benefits Not Included 
in Compensation.
Salaries and Wages--Control 11-00-00
    This account series includes the compensation payable to employees 
for services performed. It includes amounts payable in connection with 
profit sharing and stock option plans that are part of employee 
compensation. This account series also includes amounts of compensation 
payable to employees for paid time off as a fringe benefit: Vacation 
pay, holiday pay, sick pay, and other payments considered direct 
compensation for time not worked. Amounts of labor billed by 
contractors, other companies, and joint facilities, are not considered 
salaries and wages of the carrier company and are not to be included in 
this account group. Its components shall be distributed to the following 
accounts in accordance with Instruction 1-12.
Salaries and Wages--Way and Structures--Running--11-11-XX

    This account includes the compensation payable to all repair and 
maintenance employees and others who are associated with the repair and 
maintenance of the carrier's roadway and track on the line of road and 
outside of classification yards. Compensation payable to officers and 
technical and clerical employees shall only be assigned to Way and 
Structures--Other. This account shall be subdivided by the following 
functions:

Repair and Maintenance:
    Roadway.................................................    11-11-10
    Tunnels and Subways.....................................    11-11-11
    Bridges and Culverts....................................    11-11-12

[[Page 75]]

 
    Ties....................................................    11-11-13
    Rails and Other Track Material..........................    11-11-14
    Ballast.................................................    11-11-16
    Signals and Interlockers................................    11-11-19
    Highway Grade Crossings.................................    11-11-22
    Dismantling Retired Property............................    11-11-39
    Road Property and Equipment Damaged.....................    11-11-48
Other--Other................................................    11-11-99
 

Salaries and Wages--Way and Structures--Switching--11-12-XX
    This account includes the compensation payable to all repair and 
maintenance employees and others who are associated with the repair and 
maintenance of the carrier's roadway and track within classification 
yards and stations. Compensation payable to officers and technical and 
clerical employees shall be assigned to Way and Structures--Other. This 
account shall be subdivided by the following functions:

Repair and Maintenance:
    Roadway.................................................    11-12-10
    Tunnels and Subways.....................................    11-12-11
    Bridges and Culverts....................................    11-12-12
    Ties....................................................    11-12-13
    Rails and Other Track Material..........................    11-12-14
    Ballast.................................................    11-12-16
    Signals and Interlockers................................    11-12-19
    Highway Grade Crossings.................................    11-12-22
    Dismantling Retired Property............................    11-12-39
    Road Property and Equipment Damaged.....................    11-12-48
    Other--Other............................................    11-12-99
 

Salaries and Wages--Way and Structures--Other--11-13-XX
    This account includes the compensation payable to all repair and 
maintenance employees and others who are associated with the repair and 
maintenance of the carrier's structures other than roadway and track. 
Each administration account (functions 02-06) includes the compensation 
payable to all officers and technical and clerical employees associated 
with the Way and Structures Activity. This account shall be subdivided 
by the following functions:

Administration:
    Track...................................................    11-13-02
    Bridges and Buildings...................................    11-13-03
    Signals.................................................    11-13-04
    Communications..........................................    11-13-05
    Other...................................................    11-13-06
Repair and Maintenance:
    Communication Systems...................................    11-13-20
    Power Systems...........................................    11-13-21
    Station and Office Buildings............................    11-13-23
    Shop Buildings--Locomotives.............................    11-13-24
    Shop Buildings--Freight Cars............................   *11-13-25
    Shop Buildings--Other...................................    11-13-26
    Locomotive Servicing Facilities.........................    11-13-27
    Miscellaneous Buildings and Structures..................   *11-13-28
    Coal Terminals..........................................   *11-13-29
    Ore Terminals...........................................   *11-13-30
    TOFC/COFC Terminals.....................................   *11-13-31
    Other Marine Terminals..................................   *11-13-32
    Motor Vehicle Loading and Distribution Facilities.......   *11-13-33
    Facilities for Other Specialized Services Operations....   *11-13-35
    Roadway Machines........................................    11-13-36
    Snow Removal............................................    11-13-38
    Dismantling Retired Property............................    11-13-39
    Road Property and Equipment Damaged.....................    11-13-48
    Other--Other............................................    11-13-99
 

Salaries and Wages--Equipment--Locomotives--11-21-XX
    This account includes the compensation payable to all officers and 
technical and clerical employees, repair and maintenance employees, and 
others who are associated with the repair and maintenance of 
locomotives, whether owned by the carrier or by others. This account 
shall be subdivided by the following functions:

Administration--General.....................................    11-21-01
Repair and Maintenance:
    Dismantling Retired Property............................    11-21-39
    Locomotives.............................................    11-21-41
    Road Property and Equipment Damaged.....................    11-21-48
Other--Other................................................    11-21-99
 

Salaries and Wages--Equipment--Freight Cars--11-22-XX*
    This account includes the compensation payable to all officers, 
technical and clerical employees, repair and maintenance employees, and 
others, who are associated with the repair and maintenance of freight 
cars, whether owned by the carrier or by others. This account shall be 
subdivided by the following functions:

Administration--General.....................................    11-22-01
Repair and Maintenance:
    Dismantling Retired Property............................    11-22-39
    Freight Cars............................................    11-22-42
    Road Property and Equipment Damaged.....................    11-22-48
Other--Other................................................    11-22-99
 

Salaries and Wages--Equipment--Other Equipment--11-23-XX
    This account includes the compensation payable to all officers, 
technical and clerical employees, repair and maintenance employees, and 
others, who are associated with the repair and maintenance of equipment 
other than locomotives and freight cars, whether

[[Page 76]]

owned by the carrier or by others. This account shall be subdivided by 
the following functions:

Administration--General.....................................    11-23-01
Repair and Maintenance:
    Dismantling Retired Property............................    11-23-39
    Trucks, Trailers, Containers in Revenue Service.........   *11-23-43
    Floating Equipment--Revenue Service.....................   *11-23-44
    Passenger and Other Revenue Service.....................    11-23-45
    Work and Other Non-Revenue Equipment....................    11-23-47
    Road Property and Equipment Damaged.....................    11-23-48
    Shop Machinery--Locomotives.............................    11-23-49
    Shop Machinery--Other Equipment.........................    11-23-51
Other--Other................................................    11-23-99
 

Salaries and Wages--Transportation--Train--11-31-XX
    This account includes the compensation payable to all officers, 
technical and clerical employees, engine and train crews, and other 
operational employees, who are associated with the dispatching and 
operation of freight trains over the roadway and outside of 
classification yards. This account shall be subdivided by the following 
functions:

Administration--General.....................................    11-31-01
Operations:
    Engine Crews............................................    11-31-56
    Train Crews.............................................    11-31-57
    Dispatching Trains......................................    11-31-58
    Operating Switches, Signals, Interlockers, Retarders,
     Humps..................................................    11-31-59
    Operating Drawbridges...................................    11-31-60
    Highway Crossing Protection.............................    11-31-61
    Train Inspection and Lubrication........................    11-31-62
    Clearing Wrecks.........................................    11-31-63
    Locomotive Fuel.........................................    11-31-67
    Electric Power Purchased/Produced for Motive Power......    11-31-68
    Servicing Locomotives...................................    11-31-69
Other--Other................................................    11-31-99
 

Salaries and Wages--Transportation--Yard--11-32-XX
    This account includes the compensation payable to all officers, 
technical and clerical employees, engine and train crews, and other 
operational employees, who are associated with the movement of freight 
cars within classification yards and in terminal switching and transfer 
service. This account shall be subdivided by the following functions:

Administration--General.....................................    11-32-01
Operations:
    Operating Switches, Signals, Interlockers, Retarders,
     Humps..................................................    11-32-59
    Clearing Wrecks.........................................    11-32-63
    Switch Crews............................................    11-32-64
    Controlling Operations..................................    11-32-65
    Yard and Terminal Clerical..............................    11-32-66
    Locomotive Fuel.........................................    11-32-67
    Electric Power Purchased/Produced for Motive Power......    11-32-68
    Servicing Locomotives...................................    11-32-69
Other--Other................................................    11-32-99
 

Salaries and Wages--Transportation--Train and Yard--Common--11-33-XX
    This account includes the compensation payable to all officers, 
performing functions incurred on behalf of both train and yard 
operations. This account shall be subdivided by the following functions:

Operations:
    Cleaning Car Interiors..................................    11-33-70
    Adjusting and Transferring Loads........................   *11-33-71
    Car Loading Devices and Grain Doors.....................   *11-33-72
 

Salaries and Wages--Transportation--Specialized Services--11-34-XX*
    This account includes the compensation payable to all officers, 
technical and clerical employees, and other operational employees who 
are associated with operating services which are specialized in nature 
and in cost characteristics. The specialized services designated by the 
Board appear within the explanation of activities/subactivities. This 
account shall be subdivided by the following functions:

Administration--General.....................................    11-34-01
Operations:
    Pick Up and Delivery, Marine Line Haul, and Rail
     Substitute Service.....................................    11-34-73
    Loading, Unloading, and Local Marine....................    11-34-74
    Protective Services.....................................    11-34-75
Other--Other................................................    11-34-99
 

Salaries and Wages--Transportation--Administrative Support--11-35-XX
    This account includes the compensation payable to all officers, are 
associated with providing direct administrative support for the 
Transportation Activity. For further clarification refer to the 
explanation of the Administrative Support Operations Subactivity. Each 
account shall be subdivided by the following functions:

Administration--General.....................................    11-35-01
Operations:
    Clerical and Accounting Employees.......................    11-35-76
    Communication Systems Operations........................    11-35-77

[[Page 77]]

 
    Loss and Damage Claims Processing.......................    11-35-78
Other--Other................................................    11-35-99
 

Salaries and Wages--General and Administrative--11-61-XX
    This account includes the compensation payable to all employees who 
are associated with overall administration or other general support for 
carrier operations. Overall administration includes executive, legal, 
financial, treasury, accounting, budgeting, taxation, corporate 
planning, costing, marketing, advertising, traffic, corporate secretary, 
public relations, real estate, insurance administration, personnel 
administration, pension plan administration, general purchasing, labor 
relations, internal auditing, industrial engineering, and regulatory 
reporting. For further clarification refer to the explanation of the 
General and Administrative Activity. This account shall be subdivided by 
the following functions:

Administration--General.....................................    11-61-01
General:
    Accounting, Auditing, Finance...........................    11-61-86
    Marketing...............................................    11-61-88
    Sales...................................................    11-61-89
    Industrial Development..................................   *11-61-90
    Personnel and Labor Relations...........................    11-61-91
    Legal and Secretarial...................................    11-61-92
    Public Relations and Advertising........................    11-61-93
    Research and Development................................    11-61-94
Other--Other................................................    11-61-99
 

Fringe Benefits Not Included in Compensation--Control--12-00-00
    This account series includes amounts payable to others, or other 
costs charged to expense, for employee benefits which are not considered 
part of direct compensation. These benefits include the carrier portions 
of Railroad Retirement contributions, pension expense, unemployment 
taxes, dental plans, health plans, hospitalization insurance, life 
insurance, subsidies for employee lunchrooms, company entertainment 
facilities for personal use, and other benefits to employees that are 
not includible in direct compensation. They exclude travel expense on 
company business, casualties, workmen's compensation, as well as dues, 
memberships, and similar items when the direct beneficiary is clearly 
the company rather than the employee.

Fringe Benefits Not Included in Compensation--Way and
 Structures--Running........................................    12-11-00
Fringe Benefits Not Included in Compensation--Way and
 Structures--Switching......................................    12-12-00
Fringe Benefits Not Included in Compensation--Way and
 Structures--Other..........................................    12-13-00
Fringe Benefits Not Included in Compensation--Equipment
 Locomotives................................................    12-21-00
Fringe Benefits Not Included in Compensation--Equipment--
 Freight Cars...............................................   *12-22-00
Fringe Benefits Not Included in Compensation--Equipment--
 Other Equipment............................................    12-23-00
Fringe Benefits Not Included in Compensation--
 Transportation-- Train.....................................    12-31-00
Fringe Benefits Not Included in Compensation--
 Transportation-- Yard......................................    12-32-00
Fringe Benefits Not Included in Compensation--
 Transportation-- Train and Yard Common.....................    12-33-00
Fringe Benefits Not Included in Compensation--
 Transportation-- Specialized Services......................    12-34-00
Fringe Benefits Not Included in Compensation--
 Transportation--Administrative Support.....................    12-35-00
Fringe Benefits Not Included in Compensation--General and
 Administrative.............................................    12-61-00
 

Materiel Control--20-00-00
    This account may be used as a control account for the Materiel 
series: Materials, Tools, Supplies, Fuels, Lubricants.
Materials, Tools, Supplies, Fuels, Lubricants--Control--21-00-00
    This account group includes the cost of items installed or 
commodities consumed which are charged to expense in connection with 
carrier operations. This account group includes charges to expense for 
all materials, small tools, supplies, fuels, lubricants, purchased 
standard stationery and forms, freight-in on materials and supplies, and 
similar items. This account group excludes purchased services such as 
utilities, communications, postage and other items of similar nature. 
Its components shall be distributed to the following accounts:

[[Page 78]]

Materials, Tools, Supplies, Fuels, Lubricants--Way and Structures--
Running--21-11-XX

    This account includes the cost of items installed or commodities 
consumed which are charged to expense, where such items are consumed in 
the performance or support of the repair and maintenance of the 
carrier's roadway and track on the line of the road and outside of 
classification yards. Each account includes charges to expense for all 
materials, small tools, supplies, fuels, lubricants, purchased standard 
stationery and forms, freight-in on materials, and supplies, and similar 
items. Its components shall be distributed to the following functions in 
accordance with Instruction 3-2:

Repair and Maintenance:
    Roadway.................................................    21-11-10
    Tunnels and Subways.....................................    21-11-11
    Bridges and Culverts....................................    21-11-12
    Ties....................................................    21-11-13
    Rails and Other Track Material..........................    21-11-14
    Ballast.................................................    21-11-16
    Signals and Interlockers................................    21-11-19
    Dismantling Retired Property............................    21-11-39
    Road Property and Equipment Damaged.....................    21-11-48
    Other--Other............................................    21-11-99
 


Materials, Tools, Supplies, Fuels, Lubricants--Way and Structures--
Switching--21-12-XX

    This account includes the cost of items installed or commodities 
consumed which are charged to expense, where such items are consumed in 
the performance or support of the repair and maintenance of the 
carrier's roadway and track within classification yards and stations. 
This account includes charges to expense for all materials, small tools, 
supplies, fuels, lubricants, purchased standard stationery and forms, 
freight-in on materials and supplies, and similar items. Its components 
shall be distributed to the following functions in accordance with 
Instruction 3-2:

Repair and Maintenance:
    Roadway.................................................    21-12-10
    Tunnels and Subways.....................................    21-12-11
    Bridges and Culverts....................................    21-12-12
    Ties....................................................    21-12-13
    Rails and Other Track Material..........................    21-12-14
    Ballast.................................................    21-12-16
    Signals and Interlockers................................    21-12-19
    Highway Grade Crossings.................................    21-12-22
    Dismantling Retired Property............................    21-12-29
    Road Property and Equipment Damaged.....................    21-12-48
 


Materials, Tools, Supplies, Fuels, Lubricants--Way and Structures--
Other--21-13-XX

    This account includes the cost of items installed or commodities 
consumed which are charged to expense, where such items are consumed in 
the performance or support of the repair and maintenance of the 
carrier's structures not provided for in running or switching. Each 
account includes charges to expense for all materials, small tools, 
supplies, fuels, lubricants, purchased standard stationery and forms, 
freight-in on materials and supplies, and similar items. Its components 
shall be distributed to the following functions in accordance with 
Instruction 3-2:

Administration:
    Track...................................................    21-13-02
    Bridges and Buildings...................................    21-13-03
    Signals.................................................    21-13-04
    Communications..........................................    21-13-05
    Other...................................................    21-13-06
Repair and Maintenance:
    Communication Systems...................................    21-13-20
    Power Systems...........................................    21-13-21
    Station and Office Buildings............................    21-13-23
    Shop Buildings--Locomotives.............................    21-13-24
    Shop Buildings--Freight Cars............................   *21-13-25
    Shop Buildings--Other Equipment.........................    21-13-26
    Locomotive Servicing Facilities.........................    21-13-27
    Coal Terminals..........................................   *21-13-29
    Ore Terminals...........................................   *21-13-30
    TOFC/COFC Terminals.....................................   *21-13-31
    Other Marine Terminals..................................   *21-13-32
    Motor Vehicle Loading and Distribution Facilities.......   *21-13-33
    Facilities for Other Specialized Services Operations....   *21-13-35
    Roadway Machines........................................    21-13-36
    Snow Removal............................................    21-13-38
    Dismantling Retired Property............................    21-13-39
    Road Property and Equipment Damaged.....................    21-13-48
Other--Other................................................    21-13-99
 


Materials, Tools, Supplies, Fuels, Lubricants--Equipment--Locomotives--
21-21-XX

    This account includes the cost of items installed or commodities 
consumed which are charged to expense, where such items are consumed in 
the performance or support of the repair and maintenance of locomotives, 
whether owned by the carrier or by others. This account includes charges 
to expense for all materials, small tools, supplies, fuels, lubricants, 
purchased standard stationery and forms, freight-in on materials and 
supplies, and similar items. Its components shall be distributed to the 
following functions in accordance with Instruction 3-2:

[[Page 79]]



Administration--General.....................................    21-21-01
Repair and Maintenance:
    Locomotives.............................................    21-21-41
    Road Property and Equipment Damaged.....................    21-21-48
Other--Other................................................    21-21-99
 


Materials, Tools, Supplies, Fuels, Lubricants--Equipment--Freight Cars--
21-22-XX*

    This account includes the cost of items installed or commodities 
consumed which are charged to expense, where such items are consumed in 
the performance or support of the repair and maintenance of freight-
cars, whether owned by the carrier or by others. This account includes 
charges to expense for all materials, small tools, supplies, fuels, 
lubricants, purchased standard stationery and forms, freight-in on 
materials and supplies, and similar items. Its components shall be 
distributed to the following functions in accordance with Instruction 3-
2:

Administration--General.....................................    21-22-01
Repair and Maintenance:
    Dismantling Retired Property............................    21-22-39
    Freight Cars............................................    21-22-42
    Road Property and Equipment Damaged.....................    21-22-48
Other--Other................................................    21-22-99
 


Materials, Tools, Supplies, Fuels, Lubricants--Equipment--Other 
Equipment--21-23-XX

    This account includes the cost of items installed or commodities 
consumed which are charged to expense, where such items are consumed in 
the performance or support of the repair and maintenance of equipment by 
others. This account includes charges to expense for all materials, 
small tools, supplies, fuels, lubricants, purchased standard stationery 
and forms, freight-in on materials and supplies, and similar items. Its 
components shall be distributed to the following functions in accordance 
with Instruction 3-2:

Administration--General.....................................    21-23-01
Repair and Maintenance:
    Dismantling Retired Property............................    21-23-39
    Trucks, Trailers, Containers in Revenue Service.........   *21-23-43
    Floating Equipment--Revenue Service.....................   *21-23-44
    Passenger and Other Revenue Equipment...................    21-23-45
    Computer Systems and Word Processing Equipment..........    21-23-46
    Work and Other Non-Revenue Equipment....................    21-23-47
    Road Property and Equipment Damaged.....................    21-23-48
    Shop Machinery--Locomotives.............................    21-23-49
    Shop Machinery--Freight Cars............................   *21-23-50
    Shop Machinery--Other Equipment.........................    21-23-51
Other--Other................................................    21-23-99
 


Materials, Tools, Supplies, Fuels, Lubricants--Transportation--Train--
21-31-XX

    This account includes the cost of items installed or commodities 
consumed which are charged to expense, where such items are consumed in 
association with the dispatching and operation of freight trains over 
the charges to expense for all materials, small tools, supplies, fuels, 
lubricants, purchased standard stationery and forms, freight-in on 
materials and supplies, and similar items. Its components shall be 
distributed to the following functions in accordance with Instruction 3-
2:

Administration--General.....................................    21-31-01
Operations:
    Engine Crews............................................    21-31-56
    Train Crews.............................................    21-31-57
    Dispatching Trains......................................    21-31-58
    Operating Switches, Signals, Interlockers, Retarders,
     Humps..................................................    21-31-59
    Operating Drawbridges...................................    21-31-60
    Highway Crossing Protection.............................    21-31-61
    Train Inspection and Lubrication........................    21-31-62
    Clearing Wrecks.........................................    21-31-63
    Locomotive Fuels........................................    21-31-67
    Electric Power Purchased/Produced for Motive Power......    21-31-68
    Servicing Locomotives...................................    21-31-69
Other--Other................................................    21-31-99
 


Materials, Tools, Supplies, Fuels, Lubricants--Transportation--Yard--21-
32-XX

    This account includes the cost of items installed or commodities 
consumed which are charged to expense, where such items are consumed in 
and in terminal switching and transfer service. This account includes 
charges to expense for all materials, small tools, supplies, fuels, 
lubricants, purchased standard stationery and forms, freight-in on 
materials and supplies, and similar items. Its components shall be 
distributed to the following functions in accordance with Instruction 3-
2:

Administration--General.....................................    21-32-01
Operations:
    Operating Switches, Signals, Interlockers, Retarders,
     Humps..................................................    21-32-59
    Clearing Wrecks.........................................    21-32-63
    Switch Crews............................................    21-32-64
    Controlling Operations..................................    21-32-65
    Yard and Terminal Clerical..............................    21-32-66

[[Page 80]]

 
    Locomotive Fuel.........................................    21-32-67
    Electric Power Purchased/Produced for Motive Power......    21-32-68
    Servicing Locomotives...................................    21-32-69
Other--Other................................................    21-32-99
 


Materials, Tools, Supplies, Fuels, Lubricants--Transportation--Train and 
Yard Common--21-33-XX

    This account includes the cost of items installed or commodities 
consumed which are charged to expense, where such items are consumed on 
behalf of both train and yard operations. This account includes charges 
to expense for all materials, small tools, supplies, fuels, lubricants, 
supplies, and similar items. Its components shall be distributed to the 
following functions in accordance with Instruction 3-2:

Operations:
    Cleaning Car Interiors.................  21-33-70
    Adjusting, Transferring Loads..........  *21-33-71
    Car Loading Devices and Grain Doors....  *21-33-72
 


Materials, Tools, Supplies, Fuels, Lubricants--Transportation--
Specialized Services--21-34-XX*

    This account includes the cost of items installed or commodities 
consumed which are charged to expense, where such items are consumed in 
operating services which are specialized in nature and in cost 
characteristics. The specialized services designated by the Board appear 
within the explanation of specialized services. This account shall be 
subdivided by the following functions:

Administration--General.....................................    21-34-01
Operations:
    Pick Up and Delivery, Marine Line Haul, and Rail
     Substitute Service.....................................    21-34-73
    Loading, Unloading, and Local Marine....................    21-34-74
    Protective Services.....................................    21-34-75
Other--Other................................................    21-34-99
 


Materials, Tools, Supplies, Fuels, Lubricants--Transportation--
Administrative Support--21-35-XX

    This account includes the cost of items installed or commodities 
consumed which are charged to expense, where such items are consumed in 
association with providing direct administrative support for the 
Transportation Activity. For further clarification refer to the 
explanation of the Administrative Support Operations Subactivity. This 
account shall be subdivided by the following functions:

Administration--General.....................................    21-35-01
Operations:
    Clerks, Accounting Employees............................    21-35-76
    Communication Systems Operations........................    21-35-77
    Loss and Damage Claims Processing.......................    21-35-78
Other--Other................................................    21-35-99
 


Materials, Tools, Supplies, Fuels, Lubricants--General and 
Administrative--21-61-XX

    This account includes the cost of items installed or commodities 
consumed which are charged to expense, where such items are consumed in 
providing overall administration or other general support for carrier 
operations. For further clarification refer to the definition of the 
General and Administrative Activity. This account shall be subdivided by 
the following functions:

Administration--General.....................................    21-61-01
General:
    Accounting, Auditing, Finance...........................    21-61-86
    Management Services and Data and Word Processing........    21-61-87
    Marketing...............................................    21-61-88
    Sales...................................................    21-61-89
    Industrial Development..................................   *21-61-90
    Legal and Secretarial...................................    21-61-92
    Public Relations and Advertising........................    21-61-93
    Research and Development................................    21-61-94
    Other--Other............................................    21-61-99
 


                           Purchased Services

Control--30-00-00
    This account may be used as a control account for all accounts in 
the Purchased services series:

Lease Rentals--Dr.
Lease Rentals--Cr.
Joint Facility Rent--Dr.
Joint Facility Rent--Cr.
Other Rents--Dr.
Other Rents--Cr.
Joint Facility--Dr.
Joint Facility--Cr.
Repairs Billed by Others--Dr.
Repairs Billed to Others--Cr.
Other Purchased Services
Lease Rentals--Debit--Control--31-00-00
    This account series includes the rentals of road property and 
equipment with terms of 30 days or more. This account excludes joint 
facility and joint trackage rents, insurance and maintenance elements of 
lease payments, and

[[Page 81]]

all elements of capital leases as defined in FASB Statement No. 13. 
Capitalized leases shall be included in the applicable property account 
for the particular asset leased [See Instruction 2-11b]. The components 
of this natural expense will be distributed to the following accounts in 
accordance with Instruction 3-2:

Lease Rentals--Dr.--Way and Structures--Running.............    31-11-00
Lease Rentals--Dr.--Way and Structures--Switching...........    31-12-00
Lease Rentals--Dr.--Way and Structures--Other...............    31-13-00
Lease Rentals--Dr.--Equipment--Locomotives..................    31-21-00
Lease Rentals--Dr.--Equipment--Freight Cars.................   *31-22-00
Lease Rentals--Dr.--Equipment--Other Equipment..............    31-23-00
 

Lease Rentals--Credit--Control--32-00-00
    This account group includes the rentals of owned property and 
equipment or subleases of leased road property and equipment with terms 
of from 30 days to one year. Longer term leases are indicative of a 
noncarrier operation and all revenues and expenses related to such 
property and equipment should be classified accordingly and excluded 
from railroad operations. This account excludes joint facilities and 
joint trackage, capital leases, and portions of lease receipts covering 
maintenance and insurance. The components of this natural expense 
account will be distributed to the following accounts in accordance with 
Instruction 3-2:

Lease Rentals--Cr.--Way and Structures--Running.............    32-11-00
Lease Rentals--Cr.--Way and Structures--Switching...........    32-12-00
Lease Rentals--Cr.--Way and Structures--Other...............    32-13-00
Lease Rentals--Cr.--Equipment--Locomotives..................    32-21-00
Lease Rentals--Cr.--Equipment--Freight Cars.................   *32-22-00
 

Joint Facility Rents--Debits--Control--33-00-00
    This account group includes amounts payable accrued as rent for 
equipment, tracks, yards, terminals, and other facilities owned or 
controlled by other carriers, companies, or individuals, and in the 
joint use of which the accounting company participates. Amounts paid or 
payable by the accounting company in reimbursement for taxes on property 
jointly used shall be charged to this account.
    The cost of maintenance, operation, or administration of joint 
facilities, chargeable to the accounting company, shall be charged to 
the various joint facility accounts (37-XX-00). When the compensation 
for the use of joint facilities is a fixed amount or is based upon a 
charge per passenger, ton, car, or other unit, it shall be fairly 
apportioned between this account and Joint Facility--Dr. (37-XX-00). 
This apportionment shall be made by the operating company and shall be 
followed by the accounting company.
    The components of this natural expense consist of the following 
accounts:

Joint Facility Rents--Dr.--Way and Structures--Running......    33-11-00
Joint Facility Rents--Dr.--Way and Structures--Switching....    33-12-00
Joint Facility Rents--Dr.--Way and Structures--Other........    33-13-00
Joint Facility Rents--Dr. Equipment--Locomotives............   *33-21-00
Joint Facility Rents--Dr. Equipment--Freight Cars...........   *33-22-00
Joint Facility Rents--Dr. Equipment--Other Equipment........    33-23-00
 

Joint Facility Rents--Credit--Control--34-00-00
    This account series includes amounts receivable accrued for rent of 
equipment, tracks, yards, terminals and other facilities owned or 
controlled by the accounting company and used jointly with other 
companies or individuals. Amounts receivable from other companies in 
reimbursement for taxes on property jointly used shall be credited to 
this account.
    The portion of the cost of maintenance, operation, or administration 
of joint facilities recoverable from others shall be credited to the 
various joint facility accounts (38-XX-00). When the compensation for 
the use of joint facilities is a fixed amount or is based upon a charge 
per passenger, ton, car, or other unit, it shall be fairly apportioned 
by the creditor between this account and Joint Facility--Cr. (38-XX-00).
    The components of this account series shall be distributed to the 
following accounts:

[[Page 82]]



Joint Facility Rents--Cr.--Way and Structures--Running......    34-11-00
Joint Facility Rents--Cr.--Way and Structures--Switching....    34-12-00
Joint Facility Rents--Cr.--Way and Structures--Other........    34-13-00
Joint Facility Rents--Cr.--Equipment--Locomotives...........   *34-21-00
Joint Facility Rents--Cr.--Equipment--Freight Cars..........   *34-22-00
Joint Facility Rents--Cr.--Equipment--Other Equipment.......    34-23-00
 

Other Rents--Debit--Control--35-00-00
    This account group includes the rents with terms of less than 30 
days which are not renewed. This account includes all time and mileage 
payments for interchange locomotive, freight car, and other revenue 
equipment hire. The components of this account will be distributed to 
the following accounts in accordance with Instruction 3-2:

Other Rents--Dr.--Way and Structures--Running...............    35-11-00
Other Rents--Dr.--Way and Structures--Switching.............    35-12-00
Other Rents--Dr.--Way and Structures--Other.................    35-13-00
Other Rents--Dr.--Equipment--Locomotives....................    35-21-00
Other Rents--Dr.--Equipment--Freight Cars...................   *35-22-00
Other Rents--Dr.--Equipment--Other Equipment................    35-23-00
 

Other Rents--Credit--Control-- 36-00-00
    This account includes rents with terms of less than 30 days which 
are not renewed. This account includes all time and mileage receipts for 
interchanged locomotive, freight car, and other revenue equipment hire. 
The components of this account will be distributed to the following 
accounts in accordance with Instruction 3-2:

Other Rents--Cr.--Way and Structures--Running...............    36-11-00
Other Rents--Cr.--Way and Structures--Switching.............    36-12-00
Other Rents--Cr.--Way and Structures--Other.................    36-13-00
Other Rents--Cr.--Equipment--Locomotives....................    36-21-00
Other Rents--Cr.--Equipment--Freight Cars...................   *36-22-00
Other Rents--Cr.--Equipment--Other Equipment................    36-23-00
 

Joint Facility--Debit--Control-- 37-00-00
    This account includes joint trackage and joint facility costs, 
exclusive of rents, payable by the railroad to others. The components of 
this account will be distributed to the following accounts in accordance 
with Instruction 3-2:

Joint Facility--Dr.--Way and Structures--Running............    37-11-00
Joint Facility--Dr.--Way and Structures--Switching..........    37-12-00
Joint Facility--Dr.--Way and Structures--Other..............    37-13-00
Joint Facility--Dr.--Equipment--Locomotives.................    37-21-00
Joint Facility--Dr.--Equipment--Freight Cars................   *37-22-00
Joint Facility--Dr.--Equipment--Other Equipment.............    37-23-00
Joint Facility--Dr.--Transportation--Train..................    37-31-00
Joint Facility--Dr.--Transportation--Yard...................    37-32-00
Joint Facility--Dr.--Transportation--Specialized Services...   *37-34-00
Joint Facility--Dr.--Transportation--Administrative Support.    37-35-00
Joint Facility--Dr.--General and Administrative.............    37-61-00
 

Joint Facility--Credit--Control-- 38-00-00
    This account group includes joint trackage and joint facility costs, 
exclusive of rents, payable by others to the railroad. The components of 
this account will be distributed to the following accounts in accordance 
with Instruction 3-2:

Joint Facility--Cr.--Way and Structures--Running............    38-11-00
Joint Facility--Cr.--Way and Structures--Switching..........    38-12-00
Joint Facility--Cr.--Way and Structures--Other..............    38-13-00
Joint Facility--Cr.--Equipment--Locomotives.................    38-21-00
Joint Facility--Cr.--Equipment--Freight Cars................   *38-22-00
Joint Facility--Cr.--Equipment--Other Equipment.............    38-23-00
Joint Facility--Cr.--Transportation--Train..................    38-31-00
Joint Facility--Cr.--Transportation--Yard...................    38-32-00
Joint Facility--Cr.--Transportation--Specialized Services...   *38-34-00
Joint Facility--Cr.--Transportation--Administrative Support.    38-35-00
Joint Facility--Cr.--General and Administrative.............    38-61-00
 


[[Page 83]]

Repairs Billed by Others--Debit--Control--39-00-00
    This account group includes amounts payable by the railroad to 
others for repair and maintenance of the reporting railroad's property 
and equipment. The components of this account shall be distributed to 
the following accounts in accordance with Instruction 3-2:
Repairs Billed by Others--Dr.--Way and Structures--Running--39-11-XX

    This account includes amounts payable by the railroad to others for 
repair and maintenance of the reporting railroad's property associated 
with the carrier's roadway and track on the line of road and outside of 
classification yards. This account shall be subdivided by the following 
functions:

Repair and Maintenance:
    Roadway.................................................    39-11-10
    Tunnels and Subways.....................................    39-11-11
    Bridges and Culverts....................................    39-11-12
    Ties....................................................    39-11-13
    Rails and Other Track Material..........................    39-11-14
    Ballast.................................................    39-11-16
    Signals and Interlockers................................    39-11-19
    Highway Grade Crossings.................................    39-11-22
    Road Property and Equipment Damaged.....................    39-11-48
 


Repairs Billed by Others--Dr.--Way and Structures--Switching--39-12-XX

    This account includes amounts payable by the railroad to others for 
repair and maintenance of the reporting railroad's property associated 
with the carrier's roadway and track within classification yards and 
stations. This account shall be subdivided by the following functions:

Repair and Maintenance:
    Roadway.................................................    39-12-10
    Tunnels and Subways.....................................    39-12-11
    Bridges and Culverts....................................    39-12-12
    Ties....................................................    39-12-13
    Rails and Other Track Material..........................    39-12-14
    Ballast.................................................    39-12-16
    Signals and Interlockers................................    39-12-19
    Highway Grade Crossings.................................    39-12-22
    Road Property and Equipment Damaged.....................    39-12-48
 


Repairs Billed by Others--Dr.--Way and Structures--Other--39-13-XX

    This account includes amounts payable by the railroad to others for 
repair and maintenance of the carrier's structures other than roadway 
and track. This account shall be subdivided by the following functions:

Repair and Maintenance:
    Communication Systems...................................    39-13-20
    Power Systems...........................................    39-13-21
    Station and Office Buildings............................    39-13-23
    Shop Buildings--Locomotives.............................    39-13-24
    Shop Buildings--Freight Cars............................   *39-13-25
    Shop Buildings--Other Equipment.........................    39-13-26
    Locomotive Servicing Facilities.........................    39-13-27
    Miscellaneous Buildings and Structures..................    39-13-28
    Coal Terminals..........................................   *39-13-29
    Ore Terminals...........................................   *39-13-30
    TOFC/COFC Terminals.....................................   *39-13-31
    Other Marine Terminals..................................   *39-13-32
    Motor Vehicle Loading and Distribution Facilities.......   *39-13-33
    Facilities for Other Specialized Services Operations....   *39-13-35
    Roadway Machines........................................    39-13-36
    Snow Removal............................................    39-13-38
    Road Property and Equipment Damaged.....................    39-13-48
 


Repairs Billed by Others--Dr.--Equipment--Locomotives--39-21-XX

    This account includes amounts payable by the railroad to others for 
repair and maintenance under the Locomotive subactivity. This account 
shall be subdivided by the following functions:

Repair and Maintenance:
    Locomotives.............................................    39-21-41
    Road Property and Equipment Damaged.....................    39-21-48
 


Repairs Billed by Others--Dr.--Equipment--Freight Cars--39-22-XX*

    This account includes amounts payable by the railroad to others for 
repair and maintenance under the Freight Car subactivity. This account 
shall be subdivided by the following functions:

Repair and Maintenance:
    Freight Cars............................................    39-22-42
    Road Property and Equipment Damaged.....................    39-22-48
 


Repairs Billed by Others--Dr.--Equipment Other Equipment--39-23-XX

    This account includes amounts payable by the railroad to others for 
the repair and

[[Page 84]]

maintenance of equipment not pertaining to the Locomotive or Freight Car 
subactivity. This account shall be subdivided by the following 
functions:

Repair and Maintenance:
    Trucks, Trailers, and Containers in Revenue Service.....   *39-23-43
    Floating Equipment--Revenue Service.....................   *39-23-44
    Passenger and Other Revenue Equipment...................    39-23-45
    Computer Systems and Word Processing Equipment..........    39-23-46
    Work and Other Non-Revenue Equipment....................    39-23-47
    Road Property and Equipment Damaged.....................    39-23-48
    Shop Machinery--Locomotives.............................    39-23-49
    Shop Machinery--Freight Cars............................   *39-23-50
    Shop Machinery--Other Equipment.........................    39-23-51
 


Repairs Billed to Others--Cr.--Control 40-00-00
    This account series includes amounts payable by others to the 
railroad for repair and maintenance of others' road property and 
equipment. The components of this account shall be distributed to the 
following accounts in accordance with Instruction 3-2:
Repairs Billed to Others--Cr.--Way and Structures-- Running--40-11-XX

    This account includes amounts payable by others to the railroad for 
repair and maintenance of other railroads' roadway and track on the line 
of road and outside of classification yards. This account shall be 
subdivided by the following functions:

Repair and Maintenance:
    Roadway.................................................    40-11-10
    Tunnels and Subways.....................................    40-11-11
    Bridges and Culverts....................................    40-11-12
    Ties....................................................    40-11-13
    Rails and Other Track Material..........................    40-11-14
    Ballast.................................................    40-11-16
    Signals and Interlockers................................    40-11-19
    Highway Grade Crossings.................................    40-11-22
    Road Property and Equipment Damaged.....................    40-11-48
 


Repairs Billed to Others--Cr.--Way and Structures Switching--40-12-XX

    This account includes amounts payable by others to the railroad for 
repair and maintenance of other railroads' roadway and track within 
classification yards and stations. This account shall be subdivided by 
the following functions:

Repair and Maintenance:
    Roadway.................................................    40-12-10
    Tunnels and Subways.....................................    40-12-11
    Bridges and Culverts....................................    40-12-12
    Ties....................................................    40-12-13
    Rails and Other Track Material..........................    40-12-14
    Ballast.................................................    40-12-16
    Signals and Interlockers................................    40-12-19
    Highway Grade Crossings.................................    40-12-22
    Road Property and Equipment Damaged.....................    40-12-48
 


Repairs Billed to Others--Cr.--Way and Structures-- Other--40-13-XX

    This account includes amounts payable by others to the railroad for 
repair and maintenance of other railroads' structures other than roadway 
and track. This account shall be subdivided by the following functions:

Repair and Maintenance:
    Communication Systems...................................    40-13-20
    Power Systems...........................................    40-13-21
    Station and Office Buildings............................    40-13-23
    Shop Buildings Locomotives..............................    40-13-24
    Shop Buildings--Freight Cars............................   *40-13-25
    Shop Buildings--Other Equipment.........................    40-13-26
    Locomotive Servicing Facilities.........................    40-13-27
    Miscellaneous Buildings and Structures..................    40-13-28
    Coal Terminals..........................................   *40-13-29
    Ore Terminals...........................................   *40-13-30
    TOFC/COFC Terminals.....................................   *40-13-31
    Other Marine Terminals..................................   *40-13-32
    Motor Vehicle Loading and Distribution Facilities.......   *40-13-33
    Facilities for Other Specialized Services Operations....   *40-13-35
    Roadway Machines........................................    40-13-36
    Snow Removal............................................    40-13-38
    Road Property and Equipment Damaged.....................    40-13-48
 


Repairs Billed to Others--Cr.--Equipment Locomotives--40-21-XX

    This account includes amounts payable by others to the railroad for 
repair and maintenance of other railroads' locomotives. This account 
shall be subdivided by the following functions:

Repair and Maintenance:
    Locomotives.............................................    40-21-41
    Road Property and Equipment Damaged.....................    40-21-48
 



[[Page 85]]

Repairs Billed to Others--Cr.--Equipment--Freight Cars--40-22-XX*

    This account includes amounts payable by others to the railroad for 
repair and maintenance of other railroads' freight cars. This account 
shall be subdivided by the following functions:

Repair and Maintenance:
    Freight Cars............................................    40-22-42
    Road Property and Equipment Damaged.....................    40-22-48
 


Repairs Billed to Others--Cr.--Equipment--Other Equipment--40-23-XX

    This account includes amounts payable by others to the railroad for 
repair and maintenance of other railroads' other equipment. Each account 
shall be subdivided by the following functions:

Repair and Maintenance:
    Trucks, Trailers, and Containers in Revenue Service.....   *40-23-43
    Floating Equipment--Revenue Service.....................   *40-23-44
    Passenger and Other Revenue Equipment...................    40-23-45
    Computer Systems and Word Processing Equipment..........    40-23-46
    Road Property and Equipment Damaged.....................    40-23-48
    Shop Machinery--Locomotives.............................    40-23-49
    Shop Machinery--Freight Cars............................   *40-23-50
    Shop Machinery--Other Equipment.........................    40-23-51
 


Other Purchased Services--Control-- 41-00-00
    This account group includes amounts charged or credited to operating 
expenses for purchased advertising; purchased printing; outside 
professional services such as legal, accounting, audit, engineering, and 
consulting; payments for detour of trains; utilities, telephone, 
postage, subscriptions, communications, purchased electric power for 
train and locomotive propulsion; and other services purchased. The 
components of this account group shall be distributed to the following 
accounts in accordance with Instruction 3-2:
Other Purchased Services--Way and Structures--Running--41-11-XX

    This account includes amounts charged or credited to operating 
expenses for other purchased services specified in control account 41-
00-00. This account shall be subdivided by the following functions:

Repair and Maintenance:
    Roadway.................................................    41-11-10
    Tunnels and Subways.....................................    41-11-11
    Bridges and Culverts....................................    41-11-12
    Ties....................................................    41-11-13
    Rails and Other Track Material..........................    41-11-14
    Ballast.................................................    41-11-16
    Signals and Interlockers................................    41-11-19
    Highway Grade Crossings.................................    41-11-22
    Dismantling Retired Property............................    41-11-39
    Road Property and Equipment Damaged.....................    41-11-48
Other--Other................................................    41-11-99
 


Other Purchased Services--Way and Structures--Switching--41-12-XX

    This account includes amounts charged or credited to operating 
expenses for other purchased services specified in control account 41-
00-00. This account shall be subdivided by the following functions:

Repair and Maintenance:
    Roadway.................................................    41-12-10
    Tunnels and Subways.....................................    41-12-11
    Bridges and Culverts....................................    41-12-12
    Ties....................................................    41-12-13
    Rails and Other Track Material..........................    41-12-14
    Ballast.................................................    41-12-16
    Signals and Interlockers................................    41-12-19
    Highway Grade Crossings.................................    41-12-22
    Dismantling Retired Property............................    41-12-39
    Road Property and Equipment Damaged.....................    41-12-48
Other--Other................................................    41-12-99
 


Other Purchased Services--Way and Structures--Other--41-13-XX

    This account includes amounts charged or credited to operating 
expenses for other purchased services specified in control account 41-
00-00. This account shall be subdivided by the following functions:

Administration:
    Track...................................................    41-13-02
    Bridges and Buildings...................................    41-13-03
    Signals.................................................    41-13-04
    Communications..........................................    41-13-05
    Other...................................................    41-13-06
Repair and Maintenance:
    Communication Systems...................................    41-13-20
    Power Systems...........................................    41-13-21
    Station and Office Buildings............................    41-13-23
    Shop Buildings--Locomotives.............................    41-13-24
    Shop Buildings--Freight Cars............................   *41-13-25
    Shop Buildings--Other Equipment.........................    41-13-26
    Locomotive Servicing Facilities.........................    41-13-27
    Miscellaneous Buildings and Structures..................    41-13-28
    Coal Terminals..........................................   *41-13-29

[[Page 86]]

 
    Ore Terminals...........................................   *41-13-30
    TOFC/COFC Terminals.....................................   *41-13-31
    Other Marine Terminals..................................   *41-13-32
    Motor Vehicle Loading and Distribution Facilities.......   *41-13-33
    Facilities for Other Specialized Services Operations....   *41-13-35
    Roadway Machines........................................    41-13-36
    Snow Removal............................................    41-13-38
    Dismantling Retired Property............................    41-13-39
    Road Property and Equipment Damaged.....................    41-13-48
Other--Other................................................    41-13-99
 


Other Purchased Services--Equipment--Locomotives--41-21-XX

    This account includes amounts charged or credited to operating 
expenses for other purchased services specified in control account 41-
00-00. This account shall be subdivided by the following functions:

Administrative--General.....................................    41-21-01
Repair and Maintenance:
    Dismantling Retired Property............................    41-21-39
    Locomotives.............................................    41-21-41
    Road Property and Equipment Damaged.....................    41-21-48
Other--Other................................................    41-21-99
 


Other Purchased Services--Equipment--Freight Cars--41-22-XX*

    This account includes amounts charged or credited to operating 
expenses for other purchased services specified in control account 41-
00-00. This account shall be subdivided by the following functions:

Administrative--General.....................................    41-22-01
Repair and Maintenance:
    Dismantling Retired Property............................    41-22-39
    Freight Cars............................................    41-22-42
    Road Property and Equipment Damaged.....................    41-22-48
Other--Other................................................    41-22-99
 


Other Purchased Services--Equipment--Other Equipment--41-23-XX

    This account includes amounts charged or credited to operating 
expenses for other purchased services specified in control account 41-
00-00. This account shall be subdivided by the following functions:

Administrative--General.....................................    41-23-01
Repair and Maintenance:
    Dismantling Retired Property............................    41-23-39
    Trucks, Trailers, Containers in Revenue Service.........    41-23-43
    Floating Equipment--Revenue Service.....................   *41-23-44
    Passenger and Other Revenue Equipment...................    41-23-45
    Computer Systems and Word Processing Equipment..........    41-23-46
    Work and Other Non-Revenue Equipment....................    41-23-47
    Road Property and Equipment Damaged.....................    41-23-48
    Shop Machinery--Locomotives.............................    41-23-49
    Shop Machinery--Freight Cars............................   *41-23-50
    Shop Machinery--Other Equipment.........................    41-23-51
Other--Other................................................    41-23-99
 


Other Purchased Services--Transportation--Train--41-31-XX

    This account includes amounts charged or credited to operating 
expenses for other purchased services specified in control account 41-
00-00. This account shall be subdivided by the following functions:

Administration--General.....................................    41-31-01
Operations:
    Engine Crews............................................    41-31-56
    Train Crews.............................................    41-31-57
    Dispatching Trains......................................    41-31-58
    Operating Switches, Signals, Interlockers, Retarders,
     Humps..................................................    41-31-59
    Operating Drawbridges...................................    41-31-60
    Highway Crossing Protection.............................    41-31-61
    Train Inspection and Lubrication........................    41-31-62
    Clearing Wrecks.........................................    41-31-63
    Locomotive Fuel.........................................    41-31-67
    Electric Power Purchased/Produced for Motive Power......    41-31-68
    Servicing Locomotives...................................    41-31-69
Other--Other................................................    41-31-99
 


Other Purchased Services--Transportation--Yard--41-32-XX

    This account includes amounts charged or credited to operating 
expenses for other purchased services specified in control account 41-
00-00. This account shall be subdivided by the following functions:

Administration--General.....................................    41-32-01
Operations:
    Operating Switches, Signals, Interlockers, Retarders,
     Humps..................................................    41-32-59
    Clearing Wrecks.........................................    41-32-63
    Switch Crews............................................    41-32-64
    Controlling Operations..................................    41-32-65
    Yard and Terminal Clerical..............................    41-32-66
    Locomotive Fuel.........................................    41-32-67
    Electric Power Purchased/Produced for Motive Power......    41-32-68
    Servicing Locomotives...................................    41-32-69
Other--Other................................................    41-32-99
 



[[Page 87]]

Other Purchased Services--Transportation--Train and Yard Common--41-33-
XX

    This account includes amounts charged or credited to operating 
expenses for other purchased services specified in control account 41-
00-00. This account shall be subdivided by the following functions:

Operations:
    Cleaning Car Interiors..................................    41-33-70
    Adjusting, Transferring Loads...........................    41-33-71
    Car Loading Devices and Grain Doors.....................    41-33-72
 


Other Purchased Services--Transportation--Specialized Services--41-34-XX

    This account includes amounts charged or credited to operating 
expenses for other purchased services specified in control account 41-
00-00. This account shall be subdivided by the following functions:

Administration--General.....................................    41-34-73
Operations:
    Pick Up and Delivery, Marine Line Haul, and Rail
     Substitute Service.....................................    41-34-73
    Loading, Unloading, and Local Marine....................    41-34-74
    Protective Services.....................................    41-34-75
Other--Other................................................    41-34-99
 


Other Purchased Services--Transportation--Administrative Support--41-35-
XX

    This account includes amounts charged or credited to operating 
expenses for other purchased services specified in control account 41-
00-00. This account shall be subdivided by the following functions:

Administration--General.....................................    41-35-01
Operations:
    Clerks, Accounting Employees............................    41-35-76
    Communication Systems Operations........................    41-35-77
    Loss and Damage Claims Processing.......................    41-35-78
Other--Other................................................    41-35-99
 


Other Purchased Services--General and Administrative--41-61-XX

    This account includes amounts charged or credited to operating 
expenses for other purchased services specified in control account 41-
00-00. This account shall be subdivided by the following functions:

Administration--General.....................................    41-61-01
General:
    Accounting, Auditing, Finance...........................    41-61-86
    Management Services and Data and Word Processing........    41-61-87
    Marketing...............................................    41-61-88
    Sales...................................................    41-61-89
    Industrial Development..................................   *41-61-90
    Personnel and Labor Relations...........................    41-61-91
    Legal and Secretarial...................................    41-61-92
    Public Relations and Advertising........................    41-61-93
    Research and Development................................    41-61-94
Other--Other................................................    41-61-99
 



Claims and Insurance--Table of Contents




Control--50-00-00
    This account may be used as a control account for all accounts in 
the Claims and Insurance series: Loss and Damage Claims, Other 
Casualties, Insurance.
Loss and Damage Claims--Control--51-00-00
    This account series includes amounts payable to compensate for the 
loss or damage of freight or other goods carried in revenue service. 
Loss and damage claims should not be allocated. When specific 
identification of loss and damage claims is possible, the related 
expenses shall be directly assigned to the Train, Yard, or Specialized 
service Subactivity. If a solely related determination cannot be made 
the loss and damage claim shall be charged to the Train and Yard 
Subactivity. This account series excludes amounts payable to employees 
or other parties for injuries sustained or loss of life; for damage to 
real property of others or personal property not carried in revenue 
services; all payments for other damages of any kind; and related 
insurance premiums. These costs are appropriately charged to the 
following accounts:

Loss and Damage Claims--Transportation--Train...............    51-31-00
Loss and Damage Claims--Transportation--Yard................    51-32-00
Loss and Damage Claims--Transportation--Train and Yard
 Common.....................................................    51-33-00
Loss and Damage Claims--Transportation--Specialized Services   *51-34-00
 

Other Casualties--Control--52-00-00
    This account includes amounts payable to employees or other parties 
for

[[Page 88]]

injuries sustained or loss of life in connection with the construction, 
maintenance, operations, and administration of railroad property and 
equipment; for damage to real property, property of others or personal 
property not carried in revenue service; all payments for other damages 
of any kind. This account excludes freight and other goods carried in a 
revenue service, and insurance premiums related to the casualties 
chargeable to this account.
    Note: The costs of clearing wrecks and repairing casualty-caused 
damage to the railroad's property and equipment are properly classified 
under other natural expense accounts as appropriate and further 
classified by relevant activities and functions. These costs are 
appropriately charged to the following accounts:

Other Casualties--Way and Structures--Running...............    52-11-00
Other Casualties--Way and Structures--Switching.............    52-12-00
Other Casualties--Way and Structures--Other.................    52-13-00
Other Casualties--Equipment--Locomotives....................    52-21-00
Other Casualties--Equipment--Freight Cars...................   *52-22-00
Other Casualties--Equipment--Other Equipment................    52-34-00
Other Casualties--Transportation--Train.....................    52-31-00
Other Casualties--Transportation--Yard......................    52-32-00
Other Casualties--Transportation--Specialized Services......   *52-34-00
Other Casualties--Transportation--Administrative Support....    52-35-00
Other Casualties--General and Administrative................    52-61-00
 

Insurance--Control--53-00-00
    This account series include premiums for insurance to cover property 
and equipment loss and damage, liability, business interruption, and the 
like. These costs are appropriately charged to the following accounts:

Insurance--Way and Structures--Running......................    53-11-00
Insurance--Way and Structures--Switching....................    53-12-00
Insurance--Way and Structures--Other........................    53-13-00
Insurance--Equipment--Locomotives...........................    53-21-00
Insurance--Equipment--Freight Cars..........................   *53-22-00
Insurance--Equipment--Other Equipment.......................    53-23-00
Insurance--Transportation--Train............................    53-31-00
Insurance--Transportation--Yard.............................    53-32-00
Insurance--Transportation--Specialized Services.............   *53-34-00
Insurance--Transportation--Administrative Support...........    53-35-00
Insurance--General and Administrative.......................    53-61-00
 



General--Table of Contents




Control--60-00-00
    This account may be used as a control account for all accounts in 
the General series: Other Expenses, Depreciation, Uncollectible 
Accounts, Property Taxes, Other Taxes.
Other Expenses--Control--61-00-00
    This account series includes amounts charged to operating expenses 
for items not otherwise provided for in the other natural expense 
accounts, including travel and other expenses of employees, road 
property and equipment retirement losses, and other items of a general 
nature.
Other Expenses--Way and Structures--Running--61-11-XX

    Each account includes amounts charged to operating expenses for 
items not otherwise provided for in the other natural expense accounts, 
including travel and other expenses of employees, road property 
retirement losses, and other items of a general nature associated with 
the carrier's roadway and track on the line of road and outside of 
classification yards. Each account shall be subdivided by the following 
functions:

Repair Maintenance:
    Roadway.................................................    61-11-10
    Tunnels and Subways.....................................    61-11-11
    Bridges and Culverts....................................    61-11-12
    Ties....................................................    61-11-13
    Rails and Other Track Material..........................    61-11-14
    Ballast.................................................    61-11-16
    Signals and Interlockers................................    61-11-19
    Highway Grade Crossings.................................    61-11-22
    Dismantling Retired Property............................    61-11-39
    Road Property and Equipment Damaged.....................    61-11-48
Other--Other................................................    61-11-99
 


Other Expenses--Way and Structures--Switching--61-12-XX

    Each account includes amount charged to operating expenses for items 
not otherwise provided for in the other natural expense accounts, 
including travel and other expenses of employees, road property 
retirement

[[Page 89]]

losses, and other items of a general nature associated with the 
carrier's roadway and track within classification yards and stations. 
Each account shall be subdivided by the following functions:

Repair and Maintenance:
    Roadway.................................................    61-12-10
    Tunnels and Subways.....................................    61-12-11
    Bridges and Culverts....................................    61-12-12
    Ties....................................................    61-12-13
    Rails and Other Track Material..........................    61-12-14
    Ballast.................................................    61-12-16
    Signals and Interlockers................................    61-12-19
    Highway Grade Crossings.................................    61-12-22
    Dismantling Retired Property............................    61-12-39
    Road Property and Equipment Damaged.....................    61-12-48
Other--Other................................................    61-12-99
 


Other Expenses--Way and Structures--Other--61-13-XX
    This account includes amounts charged to operating expenses for 
items not otherwise provided for in the other natural expense accounts, 
including travel and other expenses of employees, road property 
retirement losses, and other items of a general nature associated with 
the carrier's structures other than roadway and track. This account 
shall be subdivided by the following functions:

Administration:
    Track...................................................    61-13-02
    Bridges and Buildings...................................    61-13-03
    Signals.................................................    61-13-04
    Communications..........................................    61-13-05
    Other...................................................    61-13-06
Repair and Maintenance:
    Communication Systems...................................    61-13-20
    Power Systems...........................................    61-13-21
    Station and Office Buildings............................    61-13-23
    Shop Buildings--Locomotives.............................    61-13-24
    Shop Buildings--Freight Cars............................   *61-13-25
    Shop Buildings--Other Equipment.........................    61-13-26
    Locomotive Servicing Facilities.........................    61-13-27
    Miscellaneous Buildings and Structures..................    61-13-28
    Coal Terminals..........................................   *61-13-29
    Ore Terminals...........................................   *61-13-30
    TOFC/COFC Terminals.....................................   *61-13-31
    Other Marine Terminals..................................   *61-13-32
    Motor Vehicle Loading and Distribution Facilities.......   *61-13-33
    Facilities for Other Specialized Services Operations....   *61-13-35
    Roadway Machines........................................    61-13-36
    Snow Removal............................................    61-13-38
    Dismantling Retired Property............................    61-13-39
    Road Property and Equipment Damaged.....................    61-13-48
Other--Other................................................    61-13-99
 

Other Expenses--Equipment--Locomotives 61-21-XX

    This account includes amounts charged to operating expenses for 
items not otherwise provided for in the other natural expense accounts, 
including travel and other expenses of employees and equipment 
retirement losses, associated with the repair and maintenance of 
locomotives, whether owned by the carrier or by others. This account 
shall be subdivided by the following functions:

Administration--General.....................................    61-21-01
Repair and Maintenance:
    Dismantling Retired Property............................    61-21-39
    Locomotives.............................................    61-21-41
    Road Property and Equipment Damaged.....................    61-21-48
Other--Other................................................    61-21-99
 


Other Expenses--Equipment--Freight Cars--61-22-XX*

    This account includes amounts charged to operating expenses for 
items not otherwise provided for in the other natural expense accounts, 
including travel and other expenses of employees, equipment retirement 
losses, associated with the repair and maintenance of freight cars, 
whether owned by the carrier or by others. This account shall be 
subdivided by the following functions:

Administration--General.....................................    61-22-01
Repair and Maintenance:
    Dismantling Retired Property............................    61-22-39
    Freight Cars............................................    61-22-42
    Road Property and Equipment Damaged.....................    61-22-48
Other--Other................................................    61-22-99
 


Other Expenses--Equipment--Other Equipment--61-23-XX

    This account includes amounts charged to operating expenses for 
items not otherwise provided for in the other natural expense accounts, 
including travel and other expenses of employees, equipment retirement 
losses, associated with the repair and maintenance of equipment other 
than locomotives and freight cars, whether owned by the carrier or by 
others. This account shall be subdivided by the following functions:

Administration--General.....................................    61-23-01
Repair and Maintenance:
    Dismantling Retired Property............................    61-23-39
    Trucks, Trailers, Containers in Revenue Service.........   *61-23-43
    Floating Equipment--Revenue Service.....................   *61-23-44
    Passenger and Other Revenue Equipment...................    61-23-45

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    Computer Systems and Word Processing Equipment..........    61-23-46
    Work and Other Non-Revenue Equipment....................    61-23-47
    Road Property and Equipment Damaged.....................    61-23-48
    Shop Machinery--Locomotives.............................    61-23-49
    Shop Machinery--Freight Cars............................   *61-23-50
    Shop Machinery--Other Equipment.........................    61-23-51
Other--Other................................................    61-23-99
 


Other Expenses--Transportation--Train--61-23-XX

    This account includes amounts charged to operating expenses for 
items not otherwise provided for in the other natural expense accounts, 
including travel and other expenses of employees, associated with the 
dispatching and operations of freight-trains over the roadway and 
outside of classification yards. This account shall be subdivided by the 
following functions:

Administration--General.....................................    61-31-01
Operations:
    Engine Crews............................................    61-31-56
    Train Crews.............................................    61-31-57
    Dispatching Trains......................................    61-31-58
    Operating Switches, Signals, Interlockers, Retarders,
     Humps..................................................    61-31-59
    Operating Drawbridges...................................    61-31-60
    Highway Crossing Protection.............................    61-31-61
    Train Inspection and Lubrication........................    61-31-62
    Clearing Wrecks.........................................    61-31-63
    Locomotive Fuel.........................................    61-31-67
    Electric Power Purchased/Produced for Motive Power......    61-31-68
    Servicing Locomotives...................................    61-31-69
Other--Other................................................    61-31-99
 


Other Expenses--Transportation--Yard--61-32-XX

    This account includes amounts charged to operating expenses for 
items not otherwise provided for in the other natural expense accounts, 
including travel and other expenses of employees, and other items of a 
general nature associated with the movement of freight cars within 
classification yards and in terminal switching and transfer service. 
This account shall be subdivided by the following functions:

Administration--General.....................................    61-32-01
Operations:
    Operating Switches, Signals, Interlockers, Retarders,
     Humps..................................................    61-32-59
    Clearing Wrecks.........................................    61-32-63
    Switch Crews............................................    61-32-64
    Controlling Operations..................................    61-32-65
    Yard and Terminal Clerical..............................    61-32-66
    Locomotive Fuel.........................................    61-32-67
    Electric Power Purchased/Produced for Motive Power......    61-32-68
    Servicing Locomotives...................................    61-32-69
Other--Other................................................    61-32-99
 


Other Expenses--Transportation--Specialized Services--61-34-XX*

    This account includes amounts charged to operating expenses for 
items not otherwise provided for in the other natural expense accounts, 
including travel and other expenses of employees, and other items of a 
general nature incurred in operating services which are specialized in 
nature and in cost characteristics. The specialized services designated 
by the Board appear within the explanation of activities/ subactivities. 
This account shall be subdivided by the following functions:

Administration--General.....................................    61-34-01
Operations:
    Pick Up and Delivery, Marine Line Haul, and Rail
     Substitute Service.....................................    61-34-73
    Loading, Unloading, and Local Marine....................    61-34-74
    Protective Services.....................................    61-34-75
Other--Other................................................    61-34-99
 


Other Expenses--Transportation--Administrative Support--61-35-XX

    This account includes amounts charged to operating expenses for 
items not otherwise provided for in the other natural expense accounts, 
including travel and other expenses of employees, and other items of a 
general nature incurred in association with providing direct 
administrative support for the Transportation Activity. This account 
shall be subdivided by the following functions:

Administration--General.....................................    61-35-01
Operations:
    Clerks, Accounting Employees............................    61-35-76
    Communication Systems Operations........................    61-35-77
    Loss and Damage Claims Processing.......................    61-35-78
Other--Other................................................    61-35-99
 

Other Expenses--General and Administrative--61-61-XX

    This account includes amounts charged to operating expenses for 
items not otherwise provided for in the other natural expense accounts, 
including travel and other expenses of employees, and other items of a 
general nature incurred in providing overall administration or other 
support for carrier operations. This account shall be subdivided by the 
following functions:

Administration--General.....................................    61-61-01

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General:
    Accounting, Auditing, Finance...........................    61-61-86
    Management Services and Data Processing.................    61-61-87
    Marketing...............................................    61-61-88
    Sales...................................................    61-61-89
    Industrial Development..................................   *61-61-90
    Personnel Labor Relations...............................    61-61-91
    Legal and Secretarial...................................    61-61-92
    Public Relations and Advertising........................    61-61-93
    Research and Development................................    61-61-94
Other--Other................................................    61-61-99
 


Depreciation--Control--62-00-00
    This account group includes the amounts charged to operating 
expenses for depreciation of owned road property and equipment, and the 
depreciation element of road property held under capital lease in 
accordance with FASB Statement No. 13. These costs are appropriately 
charged to the following accounts:

Depreciation--Way and Structures--Running...................    62-11-00
Depreciation--Way and Structures--Switching.................    62-12-00
Depreciation--Way and Structures--Other.....................    62-13-00
Depreciation--Equipment--Locomotives........................    62-21-00
Depreciation--Equipment--Freight Cars.......................   *62-22-00
Depreciation--Equipment--Other Equipment....................    62-23-00
 

Uncollectible Accounts--Control-- 63-00-00
    This account includes charges to operating expenses for the 
writedown of accounts and notes due to the railroad, whether classified 
as current or long-term. This account includes any credits to allowance 
accounts for collectibility and total writeoff of receivables. This 
account does not include writedowns of property, equipment, or 
investments (except accounts, notes, or other receivables held as 
investments). Proper adjustments of incorrect receivables are not to be 
charged to this account. Collections of amounts previously written off 
or down are to be credited to this account. The total of this account 
shall be charged to the following account:

Uncollectible Accounts--General and Administrative..........    63-61-00
 

Property Taxes--Control--64-00-00
    This account includes only taxes based on the value of real estate 
and personal property used in railroad operations. The total of this 
account shall be charged to the following account:

Property Taxes--General and Administrative..................    64-61-00
 

Other Taxes--Control--65-00-00
    This account includes taxes on gross receipts, franchise fees, 
excise taxes, and similar items. This account excludes property taxes 
and taxes chargeable as employee benefits. The total of this account 
shall be charged to the following account:

Other Taxes--General and Administrative.....................    65-61-00
 



OPERATING EXPENSE ACCOUNTS--Table of Contents




              Section 2--Activity/Subactivity Explanations

Way and Structures Activity--(XX-10-XX)
    (A) Way and Structures activity refers to repairing, maintaining, 
leasing, renting, depreciating, and retiring right-of-way and trackage, 
structures, buildings, and facilities. It includes all natural expense 
object subclassifications such as salaries and wages, fringe benefits, 
material and supplies, lease rentals, purchased services, casualties, 
depreciation and retirements, where such objects are in the performance 
or support of the above functions. Specifically included are all natural 
expense objects in the performance of the above described functions on 
property of the type included in property accounts 2 through 45, 
excluding 44, whether such property is owned or leased. It includes the 
costs of operating work trains in support of this activity.
    This activity excludes all expenses related to transportation and 
other equipment described in property accounts 44, 46 and 52 through 58, 
all of which should be charged to the Equipment activity. It also 
excludes expenses in performance or support of Transportation, General 
and Administrative activities, property used for noncarrier operations, 
non-operating

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property, and interest or other fixed charges.
Running Subactivity--(XX-11-XX)
    (1) Running subactivity of the Way and Structures activity refers to 
the functions of repairing, maintaining, leasing, renting, depreciating, 
and retiring right-of-way, trackage, signals and interlockers, and 
highway grade crossings for running tracks, passing tracks, crossovers, 
etc., including turn-outs from those tracks, passing clearance points. 
It includes all natural expense object subclassifications under the Way 
and Structures activity that are applicable to right-of-way and trackage 
as defined above. This subactivity specifically excludes expenses 
incurred in operating signals and interlockers and highway grade 
crossings, which are properly charged to the Transportation activity.
Switching Subactivity--(XX-12-XX)
    (2) Switching subactivity of the Way and Structures activity refers 
to the function of repairing, maintaining, leasing, renting, 
depreciating, and retiring right-of-way, trackage, signals and 
interlockers, and highway grade crossings for yards where separate 
switching services are maintained, including classification, house, 
team, industry, and other tracks switched by yard locomotives, and for 
station, team, industry, and other switching tracks for which no 
separate switching service is maintained. It includes all natural 
expense object subclassifications under the Way and Structures activity 
that are applicable to right-of-way and trackage as defined above. This 
subactivity specifically excludes expenses incurred in operating signals 
and interlockers, and highway grade crossings, which are properly 
charged to the Transportation activity.
Other Subactivity--(XX-13-XX)
    (3) Other subactivity of the Way and Structures activity refers to 
the function of repairing, maintaining, leasing, renting, depreciating, 
and retiring other roadway property structures, buildings, and 
facilities not provided for in the Running and Switching subactivities. 
It includes all natural expense object subclassifications under the Way 
and Structures activity that are applicable to the structures, 
buildings, and facilities as defined above. The specifically excludes 
expenses incurred in operating such structures, buildings, and 
facilities, which are properly charged to the Equipment, Transportation, 
and General and Administrative activities.
Equipment Activity--(XX-20-XX)
    (B) Equipment activity refers to repairing, maintaining, leasing, 
renting, depreciating, and retiring transportation and other operating 
equipment. It includes all natural expense object subclassifications 
such as salaries and wages, fringe benefits, material and supplies, 
lease rentals, purchased services, casualties, depreciation, and 
retirements. Specifically included are all natural expense objects in 
the performance of the above functions on property of the type included 
in property accounts 44, 46 and 52 through 58, whether such property is 
owned or leased. The costs of operating work trains in support of the 
Equipment activity are to be included herein.
    This activity excludes all expenses related to road property as 
described in property accounts 2 through 45, excluding account 44, all 
of which should be charged to the Way and Structures activity. It also 
excludes expenses in performance of, or support for Transportation, 
General and Administrative activities, property used for noncarrier 
operations, nonoperating property, and interest or other fixed charges.
Locomotives Subactivity--(XX-21-XX)
    (1) Locomotives subactivity of the Equipment activity refers to 
repairing, maintaining, leasing, renting, depreciating, and retiring 
locomotives. It includes all natural expense object subclassifications 
under the Equipment activity that are applicable to locomotives. This 
subactivity specifically excludes expenses incurred in operating 
locomotives, such as locomotive fuel and lubricants, train crew wages, 
operating supplies, servicing (as opposed to maintaining or repairing), 
and cleaning which are includable in the Transportation activity, except 
when locomotive use is clearly in support of other activities or 
subactivities. When

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locomotives are operated in support of repairing or maintaining 
locomotives, the operating costs shall be charged to this subactivity.
Freight Train Cars Subactivity--(XX-22-XX)
    (2) Freight Train Cars subactivity of the Equipment activity refers 
to repairing, maintaining, leasing, renting, depreciating, and retiring 
freight train cars. It includes all natural expense object 
subclassifications under the Equipment activity that are applicable to 
freight train cars. This subactivity pertains to all freight train cars 
described in property account 53, whether owned or leased, including 
freight cars used for hauling freight in company service and cabooses. 
It does not pertain to work equipment. This subactivity specifically 
excludes expenses incurred in running trains or operating freight cars, 
such as for locomotive fuel and lubricants, train crew wages, inspecting 
trains, operating supplies, servicing (as opposed to maintaining or 
repairing), and cleaning, which are includable in the Transportation 
activity, except where such costs are clearly in support of repairing or 
maintaining freight cars, other activities or subactivities. When 
locomotives or trains are operated in support of repairing or 
maintaining freight cars, the operating costs shall be charged to this 
subactivity.
Other Equipment Subactivity--(XX-23-XX)
    (3) Other Equipment subactivity of the Equipment activity refers to 
repairing, maintaining, leasing, renting, depreciating, and retiring 
other equipment. It includes all natural expense object 
subclassifications under the Equipment activity which are applicable to 
other equipment. The subactivity pertains to all equipment described in 
property accounts 44, 46 and 54 through 58, whether such property is 
owned or leased. This subactivity specifically excludes expenses 
incurred in operating other equipment, such as for fuel and lubricants, 
crew wages, inspecting equipment, operating supplies, servicing (as 
opposed to maintaining or repairing), and cleaning, which are includible 
in the Transportation activity, except where such costs are clearly in 
support of other activities or subactivities. When locomotives, trains, 
or other equipment are operating in support of repairing or maintaining 
other equipment, the operating costs shall be charged to this 
subactivity.
Transportation Activity--(XX-30-XX)
    (C) Transportation activity refers to operating, servicing, 
inspecting, weighing, assembling, and switching trains; operating 
highway revenue services; operating facilities in connection with 
carrier transportation operations including coal and ore terminals, 
intermodal terminals, terminal grain elevators, and others; operating 
carfloat and carferry services and related facilities; operating 
communications systems which primarily support train operations; and 
joint facility transportation operations. It includes various 
administrative functions directly supporting transportation operations 
including those described in the Administrative Support Operations 
subactivity. Work train costs in support of the Way and Structures or 
the Equipment activities should be charged to those activities. However, 
shipments of company materials, handled in predominantly revenue freight 
trains, are appropriately included in this activity. This activity 
includes all natural expense object subclassifications such as salaries 
and wages, fringe benefits, material and supplies, purchased services, 
lost or damaged freight, and casualties.
Train Operations Subactivity--(XX-31-XX)
    This activity excludes all expenses assignable to the Way and 
Structures, Equipment, and General and Administrative activities, as 
well as those expenses for noncarrier operations and nonoperating 
functions.
    (1) Train Operations subactivity of the Transportation activity 
refers to operations of all trains except those performing yard 
functions in terminals. It includes running trains in road or way 
service; switching trains except where such switching is performed 
within yards or terminals; and making customer pick-ups and deliveries 
except in yards and terminals.

[[Page 94]]

    It also provides for dispatching, controlling, reporting, and 
monitoring road train movements; inspecting and lubricating trains; 
servicing, fueling, and cleaning (not repairing or maintaining) 
locomotives; purchasing or producing electric power for motive power; 
and operating supporting activities such as communications, signaling, 
crossing protection, and interlockings.
    This subactivity also includes crew calling and transporting; crew 
lodging, meals, and other expenses; lost or damaged freight; casualties 
and insurance; clearing wrecks; and operating joint tracks and 
facilities except for yards or specialized services. It also includes 
salaries and wages, fringe benefits, material and supplies, fuel and 
lubricants, purchased services, casualty and damages, and other natural 
expense elements incurred in operating trains.
    The Train Operations subactivity excludes the operation of 
specialized services, all of which should be charged to the Specialized 
Services Operations subactivity. However, road or way switching between 
trains and specialized service facilities outside of terminal areas 
belongs to the Train Operations subactivity.
    Work and other nonrevenue train operating costs are to be charged to 
the appropriate supported activity. Shipments of company materials 
normally should be charged to this subactivity, except where the train 
movement is exclusively or predominantly for such nonrevenue purpose 
where the supported activity should bear the train operating costs.
Yard Operations Subactivity--(XX-32-XX)
    (2) Yard Operations subactivity of the Transportation activity 
refers to classifying cars to make-up or break-down trains; sorting and 
handling waybills in connection with freight car classification and 
switching in yards or terminals; inspecting, servicing, fueling, and 
cleaning (not repairing or maintaining) locomotives and cabooses used to 
provide yard or terminal services; purchasing or producing electric 
power for motive power; diverting or holding cars; and reporting 
operating and car movement data related to yards and terminals. It also 
includes operating supporting activities in yards or terminals, such as 
communications, signaling, and interlockings; yard crew calling and 
transporting; yard crew lodging, meals, and other expenses; lost or 
damaged freight specifically traceable to occurrences resulting from the 
performance of yard operations; casualties and insurance related to yard 
operations; clearing wrecks which occurred in the performance of yard 
operations; and operating joint yards and terminals.
    Within terminals, this subactivity includes pick-up or delivery of 
freight cars from or to customer spur tracks, team tracks, freight 
houses, interchange tracks, rip tracks, and specialized service 
facilities. It also includes salaries and wages, fringe benefits, 
material and supplies, fuel and lubricants, purchased services, casualty 
and damages, and other natural expense elements incurred in operating 
yards and terminals.
    The Yard Operations subactivity includes the cost of switching 
operations within facilities for Specialized Services and switching or 
transfer operations between yards and the specialized service 
facilities. The latter is not limited or affected by definitions or 
restrictions contained in carrier operating rules or labor agreements. 
It is related solely to the defined operations when they are performed 
in a yard or terminal area.
Train and Yard Common Subactivity--(XX-33-XX)
    (3) Train and Yard Common subactivity of the Transportation activity 
refers to the function of adjusting and transferring loads; and placing 
and removing car loading devices and grain doors. It also includes lost 
or damaged freight not specifically traceable to numerous activities 
resulting from performance of train, yard, or specialized services 
operations. It also includes salaries and wages, fringe benefits, 
material and supplies, purchased services, and other natural expense 
elements incurred in performing the functions defined above. It excludes 
the natural expense elements of casualties and insurance, which shall be 
charged to the

[[Page 95]]

Train Operations and Yard Operations subactivities.
Specialized Services Operations Subactivity--(XX-34-XX)
    (4) Specialized Services Operations subactivity of the 
Transportation activity refers to operating services which are 
specialized in nature and in cost characteristics, including all of 
those so designated by the Board. The purpose of segregating the cost of 
such services is primarily to preclude distortion of general costs 
applicable to the Train Operations and Yard Operations subactivities. 
Secondarily, further breakout of the costs of operating individual 
specialized services can be provided in less detail than the full range 
of natural expense accounts, in reports used for recurring cost analysis 
purposes pertaining to each type of specialized service.
    The designated specialized services operations are as follows:
    (a) TOFC/COFC Operations refers to the function of operating rail-
to-ground or water and ground or water-to-rail transfer facilities for 
handling trailers or containers, including related storage; and the 
highway movement of trailers or containers within a terminal area for 
purposes of pick-up, delivery, or interchange.
    The service includes loading, tie-down, and/or unloading flat cars 
or dollies and piggyback trailers to or from highway tractors; moving 
trailers, dollies, or containers within the facility; servicing, 
cleaning, and fueling (but not repairing or maintaining) facility 
equipment; operating storage areas; and casualties, claims, and 
insurance relating to the facility.
    TOFC/COFC Operations do not include Plan V or other arrangements, 
where there is a division of revenues between the rail and motor 
carrier. They do not include switching services performed within the 
facility by yard or road crews. They also do not include the functions 
of the Way and Structures, Equipment, and General and Administrative 
activities, or the Train, Yard, Train and Yard Common, or Administrative 
Support Operations subactivities.
    (b) Floating Operations refers to operations of water vessels and 
equipment in revenue service. They include the operation of carferries, 
tugs, barges, lighterage, and all other forms of water craft.
    Floating operations exclude operations includable in the 
Administrative Support Operations subactivity, and the switching 
transfer of cars between general yards or trains and the facility or a 
dedicated yard serving the facility, or switching within the dedicated 
supporting terminal facility when performed by yard crews. They also do 
not include costs appropriate to the Way and Structures, Equipment, or 
General and Administrative activities.
    Floating operations should be classified by line and terminal 
operations. The distribution should be made based on the nature of the 
operation and not the facility or equipment. When the service occurs 
between distinct terminals, the operation should be considered a line 
operation. When the service is conducted within a general terminal or 
harbor area, the operation should be considered a terminal operation.
    (c) Coal Terminal Operations and Ore Terminal Operations refers to 
operations of rail-to-water or water-to-rail transloading facilities for 
coal or for ores, including related storage, blending, and other 
processing or handling at the facility. These operations include loading 
and/or unloading rail cars or water vessels at the facility; moving 
commodities within the facility by whatever means; operating the 
facility's pollution control equipment; operating and directing the 
operations of moorings and tugboats; servicing, cleaning, and fueling 
(but not repairing or maintaining) facility equipment; operating storage 
areas; and casualties, claims, and insurance relating to the facility.
    These terminal operations do not include costs appropriate to the 
Way and Structures, Equipment, or General and Administrative activities. 
They also do not include costs appropriate to the Train Operations, Yard 
Operations, Train and Yard Operations Common, or Administrative Support 
Services Operations subactivities. Switching transfer of cars between 
general yards or trains and the facility or a dedicated yard serving the 
facility and switching

[[Page 96]]

within the dedicated supporting terminal facility when performed by yard 
crews should be charged to the Yard Operations subactivity.
    (d) Other Marine Terminal Operations refers to the operations of 
marine terminals other than those for which a separate designated 
specialized service operation category is provided.
    (e) Motor Vehicle Loading and Distribution Facility Operations 
refers to the operations of facilities for loading, unloading, or 
storing motor vehicles.
    (f) Protective Service Operations refers to the function of 
servicing, cleaning, and fueling (but not repairing or maintaining) 
mechanical protective service equipment.
    (g) Other Specialized Services Operations refers to the function of 
performing rail substitute service, other highway revenue service, LCL 
terminal operations, warehouse operations, freight car transloading, 
grain elevator terminal operations, livestock feeding operations, and 
other specialized services designated by the Board. It includes the 
transportation operating expenses of only those services listed above.
Administrative Support Operations Subactivity--(XX-35-XX)
    (5) Administrative Support Operations subactivity refers to 
operations providing direct administrative support to the overall 
Transportation activity. It includes administrative support for the 
Common, and the Specialized Services Operations subactivities. The 
administrative support operations includes receiving and processing 
customer orders, requesting cars, preparing waybills, rating shipments, 
billing customers, collecting customer receivables in the ordinary 
course of business (not to include treasury, legal, general accounting, 
revenue accounting, or credit operations, all of which are chargeable to 
the General and Administrative activity), billing and recording 
demurrage, reporting interchanges, reporting advances, and the initial 
reporting and summarization of input documents for purposes of cash 
collection and accounting. Any operations beyond the initial 
summarization and reporting of input data are assignable to the General 
and Administrative activity except for those otherwise included in the 
definition of this subactivity.
    Carrier staff, administrative, or clerical operations related to 
operating or transportation department general administration should not 
be charged to this subactivity. The Administrative Support Operations 
subactivity may be performed at local stations, regional offices, or 
even at the general offices; however, the location of the operation 
performance does not affect its nature. The operations included in this 
subactivity should reasonably correlate to the quantity of shipments or 
to the quantity of carloadings.
General and Administrative Activity--(XX-60-XX)
    (D) General and Administrative activity refers to the providing of 
overall administration or other general support for carrier operations. 
It comprehends only that portion of general and administrative 
activities that relates to carrier operations (as distinguished from 
noncarrier operations or nonoperating activities) including executive, 
legal, financial, treasury, accounting, budgeting, taxation, corporate 
planning, costing, marketing, advertising, traffic, corporate secretary, 
public relations, real estate, insurance administration, personnel 
administration, pension plan administration, general purchasing, labor 
relations, internal auditing, industrial engineering, and regulatory 
reporting.
    This activity excludes expenses incurred for noncarrier operations 
of the carrier company as well as for general administration of the 
corporate entity and nonoperating income or expenses. It also excludes 
expenses in performance of or direct support for Way and Structures, 
Equipment, and Transportation activities, with particular attention to 
the Administrative Support Operations subactivity.



OPERATING EXPENSE ACCOUNTS--Table of Contents




                    Section 3--Function Explanations

    Note: Functions do not necessarily correlate to organizational 
structure. A particular department may not have a specific USOA expense 
function code. However, its costs may be includable under various 
function codes. Costs not properly chargeable to

[[Page 97]]

specific functions should be assigned to Function Code 99, Other.
    (a) Functions Related to the Way and Structures Activity
    (1) Administration Functions.
    (02) Administration, Track--General administration and supervision 
of central, regional, and divisional engineering functions related to 
repair and maintenance of track. Used only in Way and Structures-- 
Other. Included are:

     General engineering and design.
     Valuation engineering for maintenance and improvements.
     Planning and supervision of repair and maintenance work.
     Budget preparation, clerical support, and similar 
functions.

    (03) Administration, Bridges and Buildings--General administration 
and supervision of central, regional and divisional engineering 
functions related to repair and maintenance of bridges and buildings. 
Used only in Way and Structures--Other. Included are:

     General engineering and design.
     Valuation engineering for maintenance and improvements.
     Planning and supervision of repair and maintenance work.
     Budget preparation, clerical support, and similar 
functions.

    (04) Administration, Signals--General administration and supervision 
of central, regional, and divisional engineering functions related to 
repair and maintenance of signals. Used only in Way and Structures--
Other. Included are:

     General engineering and design.
     Valuation engineering for maintenance and improvements.
     Planning and supervision of repair and maintenance work.
     Budget preparation, clerical support, and similar 
functions.

    (05) Administration, Communications--General administration and 
supervision of central, regional, and divisional engineering functions 
related to repair and maintenance of communication facilities. Used only 
in Way and Structures--Other. Included are:

     General engineering and design.
     Valuation engineering for maintenance and improvements.
     Planning and supervision of repair and maintenance work.
     Budget preparation, clerical support, and similar 
functions.

    (06) Administration, Other--General administration and supervision 
of central, regional, and divisional engineering functions related to 
repair and maintenance of other roadway property. Used only in Way and 
Structures--Other. Included are:

     General engineering and design.
     Valuation engineering for maintenance and improvements.
     Planning and supervision of repair and maintenance work.
     Budget preparation, clerical support, and similar 
functions.

    (2) Repair and Maintenance Functions--These functions include:

     Repair and maintenance work on road property and equipment, 
including gang foreman, shop foreman, and other supervisors with direct 
authority over workers; all higher levels of supervision are included in 
the Administration function.
     Work train service. Crew wages are to be charged directly; 
other work train expenses except fuel may be apportioned if not solely 
identifiable to work train service.
     Store expense and shop expense.

    (10) Repair and Maintenance, Roadway--Roadway, cuts, fills, banks, 
embankments, subgrade, roadbed, ditches, drains, landscaping; cutting 
and removing grass, brush, debris; dressing ballast; preventing and 
extinguishing fires; patrolling and inspection; roadway relocation.
    (11) Repair and Maintenance, Tunnels and Subways--Repaving, 
ventilating, lighting, other maintenance.
    (12) Repair and Maintenance, Bridges and Culverts--Bridges, 
trestles, culverts and elevated structures which carry tracks; 
repairing, filling, dredging, cleaning, watching these structures.
    (13) Repair and Maintenance, Ties--Cross, switch, bridge, and other 
track ties. This function includes expenses associated with unloading, 
distributing and placing ties in tracks.
    (14) Repair and Maintenance, Rails and Other Track Material--All 
track material used in repair of tracks except ballast and ties. This 
function includes expenses associated with unloading and installing Rail 
and Other Track Material.

[[Page 98]]

    (16) Repair and Maintenance, Ballast--Gravel, stone, slag, cinders, 
sand, and like material.
    (19) Repair and Maintenance, Signals and Interlockers--Signals and 
interlockers and related apparatus governing train movement.
    (20) Repair and Maintenance, Communications Systems--Telephone, 
telegraph, radio, radar, inductive train communication, and other 
communication systems, including terminal equipment.
    (21) Repair and Maintenance, Power Systems--Power plants, 
substations, transmission and distribution systems.
    (22) Repair and Maintenance, Highway Grade Crossings--Highway grade 
crossing signals, gates, and related apparatus.
    (23) Repair and Maintenance, Station and Office Buildings--Station 
and office buildings, fixtures, appurtenances, and grounds.
    (24) Repair and Maintenance, Shop Buildings--Locomotives--Shops and 
buildings, fixtures, appurtenances, and grounds, used for the repair, 
maintenance and servicing of locomotives.
    (25) Repair and Maintenance, Shop Buildings--Freight Cars--Shops and 
buildings, fixtures, appurtenances, and grounds, used for the repair, 
maintenance, and servicing of freight cars.
    (26) Repair and Maintenance, Shop Buildings--Other--Shops and 
buildings, fixtures, appurtenances, and grounds, used for the repair, 
maintenance, and servicing of revenue service equipment other than 
locomotives and freight cars; roadway machines; work equipment and the 
like.
    (27) Repair and Maintenance, Locomotive Servicing Facilities--Fuel 
and water stations, fixtures, appurtenances, and grounds.
    (28) Repair and Maintenance, Miscellaneous Buildings and Structures. 
All permanent buildings and structures, and their fixtures, 
appurtenances, and grounds, not otherwise provided for. (Includes 
storehouses.)
    (29) Repair and Maintenance, Coal Terminals--Wharves, docks, and 
other loading or unloading facilities for handling coal, including 
conveyors, machinery and fixtures.
    (30) Repair and Maintenance, Ore Terminal--Wharves, docks, and other 
loading or unloading facilities for handling ores and other bulk mineral 
commodities, including conveyors, machinery and fixtures.
    (31) Repair and Maintenance, TOFC/COFC--Terminals--TOFC/COFC 
terminal structures, fixtures, machinery and appurtenances, used for 
transfer of trailers and containers.
    (32) Repair and Maintenance, Other Marine Terminals--Marine terminal 
structures, fixtures, machinery and appurtenances not otherwise provided 
for.
    (33) Repair and Maintenance, Motor Vehicle Loading and Distribution 
Facilities--Buildings, structures, fixtures, machinery and appurtenances 
used for receipt, loading, unloading, and distribution of motor 
vehicles.
    (35) Repair and Maintenance Facilities for Other Specialized 
Services Operations--Buildings, structures, machinery, fixtures and 
grounds, used as part or whole of a revenue-producing specialized 
service.
    (36) Repair and Maintenance, Roadway Machines--Machines and 
equipment used for repairs of roadway and structures.
    (37) Small tools and Supplies--Cost of small tools and supplies used 
in repair and maintenances.
    (38) Snow Removal--Removal of snow and ice; plow and flange service; 
setting up, taking down and storing fences. If the amount of labor 
expense is not substantial, the wages of those employees who perform 
snow removal duties may be included in the appropriate expense accounts 
for the duties they are normally assigned.
    (39) Dismantling Retired Property--Dismantling retired road property 
when the property is not to be replaced through normal maintenance, 
addition or betterment.
    (48) Road Property Damaged--Repair of roadway property and 
structures, used in revenue service, and all equipment not used in 
revenue service, when damage is caused by derailments, collision, fire, 
explosions, sabotage, other casualties, and excluding damage resulting 
through normal operations or use; such as part failures, overloads, 
overheating, short circuits and similar events. Part failures through 
normal

[[Page 99]]

operations are those where the resulting damage is restricted to the 
unit of road property which experienced the failure. When the damage 
extends to other units of road property, related expenses shall be 
charged to this function.
    (3) Other Function.
    (99) Other--All expenses not properly includable in the above 
functions.
    (b) Functions Related to the Equipment Activity
    (1) Administrative Functions.
    (01) Administration, General--General administration and supervision 
of central, regional, and divisional repair and maintenance functions. 
Included are:

     General engineering and design.
     Valuation engineering for maintenance and improvements.
     Planning and supervision of repair and maintenance of 
equipment.
     Budget preparation, clerical support, and similar 
functions.

    (2) Repair and Maintenance Functions--These functions include:

     Repair and maintenance work on equipment including gang 
foreman, shop foreman, and other supervisors with direct authority over 
workers; all higher levels of supervision are included in the 
Administrative function.
     Store expense and shop expense.

    (39) Dismantling Retired Property--Dismantling retired equipment 
when the property is not to be replaced through normal maintenance, 
addition or betterment.
    (40) [Reserved]
    (41) Repair and Maintenance, Locomotives--Repair of locomotives in 
revenue service.
    (42) Repair and Maintenance, Freight Cars--Repair of freight cars 
and attached motor equipment in revenue service.
    (43) Repair and Maintenance, Trucks, Trailers, Containers in Revenue 
Service--Repair, inspection, and lubrication of trucks, trailers and 
containers in revenue service.
    (44) Repair and Maintenance, Floating Equipment in Revenue Service-- 
Floating equipment including appurtenances.
    (45) Repair and Maintenance, Passenger and Other Revenue Equipment--
Repair, inspection and lubrication of passenger train cars and attached 
motor equipment, and other equipment used in revenue service.
    (46) Repair and Maintenance, Computer Systems and Word Processing 
Systems--Computers and attached peripheral equipment; data recording and 
punch-card processing equipment; word processing equipment.
    (47) Repair and Maintenance, Work and Other Non-Revenue Equipment-- 
Rail and floating work equipment and appurtenances, and all other 
equipment not used in revenue service and not provided for elsewhere.
    (48) Equipment Damaged--Repair of locomotives, freight cars, other 
equipment used in revenue service, and all equipment not used in revenue 
service, when damage is caused by derailment, collision, fire, 
explosions, sabotage, washouts, or other casualties, and excluding 
damage resulting through normal operations or use, such as part 
failures, overloads, overheating, short circuits and the like. Part 
failures through normal operations are those where the resulting damage 
is restricted to the equipment that experienced the failure. When the 
damage extends to other units of equipment, related repairs shall be 
charged to this function.
    (49) Repair and Maintenance, Shop Machinery--Locomotives--Repair of 
shop machinery and other apparatus, including special foundations used 
for the repair, maintenance and servicing of locomotives.
    (50) Repair and Maintenance, Shop Machinery--Freight Cars--Repair of 
shop machinery and other apparatus, including special foundations for 
the repair, maintenance and servicing of freight cars.
    (51) Repair and Maintenance, Shop Machinery--Other Equipment--Repair 
of shop machinery and other apparatus, including special foundations for 
the repair, maintenance and servicing of other equipment.
    (3) Other Function.
    (99) Other--All equipment expenses not properly includable in the 
above functions.
    (c) Functions Related to the Transportation Activity
    (1) Administrative Function.
    (01) Administration, General--General administration and supervision 
of

[[Page 100]]

central, regional, and divisional operational functions. Included are:

     Planning and supervision of train, yard, common, 
specialized services and support operations.
     Budget preparation, clerical support, and similar 
functions.

    [Not applicable to the Train and Yard Common Subactivity.]

    (2) Operations Functions.
    (56) Engine Crews--Operation of trains in line-haul revenue service 
by enginemen, including crew meals, lodging, deadheading and other 
expenses.
    (57) Train Crews--Operation of trains in line-haul revenue service 
by trainmen, including crew meals, lodging, deadheading, and other 
expenses.
    (58) Dispatching Trains--Costs include dispatchers, supporting 
staff, train order stations and operators, office and supplies expense.
    (59) Operating Switches, Signals, Interlockers, Retarders, Humps-- 
Operators, switch tenders, supplies, etc.
    (60) Operating Drawbridges--Engineers, tenders, watchmen, supplies, 
etc.
    (61) Highway Crossing Protection--Gatekeepers, flagmen, lighting, 
supplies, etc.
    (62) Train Inspection and Lubrication--Inspection and lubrication of 
trains (cars and locomotives), including minor repairs made by 
inspectors. This includes the inspection of train locomotives when 
indistinguishable from the inspection and lubrication of train cars.
    (63) Clearing Wrecks--Removal of equipment, freight or other goods, 
and property of others damaged in wrecks; note that repair of wreck 
damage caused to roadway property and equipment is classified as 
function Code 48--Road Property and Equipment Damaged.
    (64) Switch Crews--Operation of trains and locomotives in yard and 
terminal revenue switching service by enginemen and trainmen, including 
associated expenses.
    (65) Controlling Operations--Directing the operations of yard and 
terminal interchange and classification service, including office and 
supplies expense.
    (66) Yard and Terminal Clerical--Clerical work in support of the 
operation of yard and terminal switching and classification service, 
including office and supplies expense.
    (67) Locomotive Fuel--Cost of locomotive fuel used in all service, 
including the receipt, storage, and dispensing of the fuel.
    (68) Electric Power Purchased/Produced for Motive Power--Purchase 
cost and cost of producing electric power for use by electrically-
powered motive equipment in all service.
    (69) Servicing Locomotives--Preparing locomotives for switching 
service in yards and for train service, including moving locomotives 
around engine yards. This includes the inspection and lubrication of 
yard locomotives and may include the inspection and lubrication of train 
locomotives where distinguishable from the inspection and lubrication of 
train cars.
    (70) Cleaning Car Interiors--Cleaning and preparing car interiors 
for revenue service, including minor repairs made by car cleaners. This 
includes payment for cleaning cars due to spoilage of perishable 
shipments.
    (71) Adjusting and Transferring Loads--Transferring, picking up, 
straightening, and reloading freight in the ordinary course of 
transportation.
    (72) Car Loading Devices and Grain Doors--Servicing car loading 
devices and placing and removing grain doors.
    (73) Pickup & Delivery, Marine Line Haul & Rail Substitute Service-- 
Operation of trucks, floating equipment, and all other specialized 
equipment providing line haul movement for revenue including TOFC/COFC 
pick-up and delivery.
    (74) Loading & Unloading and Local Marine--All other specialized 
services in the transportation activity such as TOFC/COFC loading, 
unloading, and tie down; coal and ore loading and unloading; and other 
similar functions.
    (75) Protective Services--Inspecting, servicing, cleaning, and 
fueling protective equipment and devices.
    (76) Clerical and Accounting Employees--Direct administrative 
support to the Transportation Activity, including receiving and 
processing customer orders, requesting cars, preparing waybills, rating 
shipments, billing customers, collecting customer receivables in the 
ordinary course of business, billing and recording demurrage,

[[Page 101]]

reporting interchanges, reporting advances, and the initial 
summarization and reporting of input data.
    (77) Communications Systems Operation--Cost of operating 
communications systems; when such operations are an integral part of 
other functions, only specifically identifiable costs of operating 
communications systems are to be allocated to this function.
    (78) Loss and Damage Claims Processing--Receipt, investigation, 
other handling, and adjustment and settlement of claims for loss or 
damage of freight or other goods carried in revenue service. Does not 
include handling claims for personal injury or for loss or damage of 
other property.
    (3) Other Function.
    (99) Other--All transportation expenses not properly includable in 
the above functions.
    (d) Functions Related to the General and Administration Activity
    (1) Administrative Function.
    (01) Administration, General--General administration and supervision 
of central, regional, and divisional general functions. Included are:

     Planning and supervision of general and administrative 
functions.
     Budget preparation, clerical support, and similar 
functions. It includes the overall responsibility for two or more of the 
General and Administrative functions listed below or the responsibility 
that expands to more than one activity.

    (2) General Functions.
    (86) Accounting, Auditing, Finance--General and corporate 
accounting, auditing by internal auditors and outside accountants, 
treasury, tax accounting and returns, financial reporting, corporate 
planning related to investment decisions and budgeting.
    (87) Management Services and Data and Word Processing--Systems 
planning and design, programming, computer operations, data control, key 
entry of data, and related activities; This includes operating expenses 
associated with a particular computer system or word processing 
equipment that is dedicated to more than one activity. This does not 
include expenses associated with computer systems or word processing 
equipment dedicated exclusively to the Way and Structure, Equipment or 
Transportation Activity; these expenses shall be charged to the 
appropriate subactivity/function.
    (88) Marketing--Market planning and analysis, traffic analysis, 
costing, pricing, and related activities.
    (89) Sales--Traffic solicitation and related sales efforts.
    (90) Industrial Development--Efforts to locate industries on real 
estate accessible to the railroad's lines for the purpose of creating 
future revenues.
    (91) Personnel and Labor Relations--Efforts to attract and retain 
employees, handle fringe benefit plans, monitor and negotiate labor 
contracts, maintain employee data and records, coordinate training 
programs, handle grievances, handle employee transfers, operate job 
safety and equal opportunity programs, and related activities.
    (92) Legal and Secretarial--Legal functions handled by attorneys and 
supporting staff; including lawsuits, injury and damage claims, commerce 
matters, and similar functions; corporate secretarial functions 
involving shareholder records, corporate minutes, stock certificates, 
and similar items.
    (93) Public Relations and Advertising--Public relations activities 
with governmental bodies, shippers, and the general public; advertising 
in the media, booklets, publications; open houses and tours; and similar 
activities.
    (94) Research and Development--Research into the use of methods, 
procedures, practices, equipment, machinery tools, and plant, and in 
determining and measuring the impact of factors or costs not previously 
known, with the intention of finding ways to improve maintenance, 
operations, administration, rates, productivity, environmental impact, 
and similar items. Does not include specific studies or development 
efforts for which an implementation decision has already been made.
    (3) Other Function.
    (99) Other--All general and administration expenses not properly 
includable in the above functions.

[[Page 102]]



INCOME ACCOUNTS--Table of Contents






Ordinary Items--Table of Contents




501  Railway operating revenues.
    This account is a summarization of Railway Operating Revenue 
Accounts 101 to 122. It excludes transfers from governmental authorities 
except when the transfer payment is for specific services for 
transporting property or persons by rail line other than commuter 
operations and local rail service subsidies granted under authority of 
the Railroad Revitalization and Regulatory Reform Act of 1976 [See 
Instruction 1-15(e)(2)].

[52 FR 4346, Feb. 11, 1987]
502  Railway operating revenues--transfers from government authorities 
for current operations.
    This account shall include amounts received or receivable from 
Federal, state, or municipal authorities which are specifically 
designated to offset operating expenses, or which may be applied at the 
discretion of the railroad to operating expenses and/or railroad 
property.
    This account shall also include amounts received from government 
authorities to offset operating costs sustained on specific lines or in 
certain regions. Examples are: (1) Local Rail Service Assistance 
Subsidies granted to the carrier under authority of the Railroad 
Revitalization and Regulatory Reform Act of 1976, and (2) payments by 
regional transit authorities in connection with specified operations 
performed by the carrier.
    This account shall also include indirect receipts which reduce 
operating expenses, such as assumption of station maintenance costs, 
abatement of taxes, or other indirect contributions by government 
agencies, if clearly identifiable and measurable.
    Note: This account shall not include receipts from government 
authorities designated for the acquisition, addition to, or improvement 
of railway operating property. (See instruction 1-15.)

(49 U.S.C. 304, 320)

[43 FR 30558, July 17, 1978]
503  Railway operating revenues--amortization of deferred transfers from 
government authorities.
    This account shall include the amortization applicable to amounts 
representing the cost of acquisition, addition to, or improvement of 
depreciable operating property received from Federal, state, or 
municipal authorities. (See instruction 1-15, and account 783, 
``Deferred Revenues--Transfers from Government Authorities.'')

(49 U.S.C. 304, 320)

[43 FR 30558, July 17, 1978]
506  Revenues from property used in other than carrier operations.
    This account shall include the total revenues derived from property 
used in other than carrier operations, the cost of which is includible 
in balance-sheet account 737, ``Property used in other than carrier 
operations.''
510  Miscellaneous rent income.
    (a) This account shall include such rents of property owned and 
controlled by the accounting carrier as are not provided for in the 
foregoing accounts.
    (b) This account shall be charged with the cost of maintenance of 
the property rented, also specific incidental expenses in connection 
with such property, such as the cost of negotiating contracts, 
advertising for tenants, fees paid conveyancers, collectors' 
commissions, and analogous items.
    Note A: Taxes on property the rent of which is creditable to this 
account shall be charged to account 64-61-00, Property Taxes.
    Note B: The rent from property carried in account 737, Property used 
in other than carrier operations, shall not be included in this account. 
Such rents shall be included in account 506, Revenues from property used 
in other than carrier operations.
    Note C: Rent and other income from real estate acquired for new 
lines or for additions and betterments shall be credited to the 
appropriate road and equipment accounts until the completion or coming 
into service of the property.
    Note D: Rent and other income from real estate acquired for new 
lines or for additions and betterments shall be credited to the 
appropriate road and equipment accounts until the completion or coming 
into service of the property.

[42 FR 35017, July 7, 1977, as amended at 52 FR 4346, Feb. 11, 1987]

[[Page 103]]

512  Separately operated properties; profit.
    (a) This account shall include amounts earned under the terms of 
agreements or contracts whereby the net income resulting from the 
operation by others or properties of other companies having a separate 
corporate existence is to be paid, in whole or in part, to the 
accounting company.
    (b) In determining the amount earned by the accounting company, 
consideration shall be given not only to the operating revenues and 
operating expenses but also to other items of income or deduction which 
affect that amount.
    Note A: The amount payable by the operating company shall be charged 
by it to account 550, Income Transferred under Contracts and Agreements.
    Note B: Dividends or other returns upon securities issued by 
separately operated companies, and held or controlled by the accounting 
company, shall be included in accounts 513, ``Dividend income,'' 514, 
``Interest income,'' or 516, ``Income from sinking and other funds,'' as 
may be appropriate.

[42 FR 35017, July 7, 1977, as amended at 52 FR 4347, Feb. 11, 1987]
513  Dividend income.
    (a) This account shall include dividends declared on railway and 
other stocks, the income from which is the property of the accounting 
company, whether such stocks are owned by the accounting company and 
held in its treasury or deposited in trust, or are controlled through 
lease or otherwise.
    (b) Dividends declared shall not be credited prior to actual 
collection unless their payment is reasonably assured by past 
experience, guaranty, anticipated provision, or otherwise. (See note C 
to account 708, ``Interest and dividends receivable.'')
    (c) Accruals of guaranteed dividends may be included in this account 
if their payment is reasonably assured.
    Note A: This account shall not include credits for dividends on 
stocks issued or assumed by the accounting company and owned by it, 
whether pledged as collateral or held in its treasury, in special 
deposits, or in sinking or other funds.
    Note B: Dividends on stocks of other companies held in sinking or 
other funds shall be credited to account 516, ``Income from sinking and 
other funds.''
514  Interest income.
    (a) This account shall include the interest on securities and 
debenture stock of other companies, the income from which is the 
property of the accounting company whether such securities are owned by 
the accounting company and held in its treasury or deposited in trust, 
or are controlled through lease or otherwise.
    (b) The account shall also include interest on notes and other 
evidences of indebtedness and interest on bank balances, open accounts, 
and other analogous items, including discount or short-term notes. 
Interest shall not be accrued unless its payment is reasonably assured 
by past experience, guaranty, anticipated provision, or otherwise. (See 
note C to account 708, ``Interest and dividends receivable.'')
    (c) At the option of the accounting company there may be included 
each year in this account the portion, applicable to the fiscal period, 
of the amount requisite to extinguish, during the interval between the 
date of acquisition and the date of maturity, the discount or premium on 
securities of other companies owned (other than short-term notes). 
Amounts thus credited or charged shall be concurrently charged or 
credited to the account in which the cost of the securities is carried. 
The discount on short-term notes shall be distributed through equal 
monthly credits, over the terms of the notes.
    Note A: This account shall not include interest on securities issued 
or assumed by the accounting company and owned by it, whether pledged as 
collateral or held in its treasury, in special deposits, or in sinking 
or other funds.
    Note B: Interest on securities other than those of the accounting 
company, and on other assets held in sinking or other funds shall be 
included in account 516, ``Income from sinking and other funds.''
    Note C: Discount on bills for material purchased shall be credited 
to the accounts to which is charged the cost of the material with 
respect to which the discount is allowed.
516  Income from sinking and other funds.
    (a) This account shall include the income on cash, securities, and 
other assets (not including securities issued or

[[Page 104]]

assumed by the accounting company) held in sinking and other funds. (See 
note C to account 708, ``Interest and dividends receivable.'')
    (b) At the option of the accounting company there may be included 
each year in this account the portion, applicable to the fiscal period, 
of the amount requisite to extinguish, during the interval between the 
date of acquisition and the date of maturity, the discount or premium on 
funded securities held in sinking or other funds. Amounts thus credited 
or charged shall be concurrently charged or credited to the account in 
which the cost of the securities is carried.
517  Release of premiums on funded debt.
    This account shall include, during each fiscal year, such proportion 
of the premiums on outstanding funded debt as may be applicable to the 
period. (See instruction 5-3.)
518  Reimbursement received under contracts and agreements.
    (a) This account shall include amounts received or receivable from 
other companies or individuals, representing the whole or a part of the 
net loss of the accounting company, when under the terms of agreements 
or contract, no obligation for subsequent reimbursement is incurred.
    (b) In determining the amount receivable by the accounting company, 
consideration shall be given not only to the operating revenues and 
operating expenses, but also to other items of income or deduction which 
affect that amount.
    Note: The amount payable shall be charged by the contributing 
company to account 545, ``Separately operated properties--Loss.''

[42 FR 35017, July 7, 1977, as amended at 52 FR 4347, Feb. 11, 1987]
519  Miscellaneous income.
    (a) This account shall include all items, not provided for 
elsewhere, properly creditable to income accounts during the current 
year. Among the items which shall be included in this account are:

    Cancellation of balance sheet accounts representing unclaimed wages 
and vouchered accounts written off because of carrier's inability to 
locate the creditor.
    Profit from sale of securities carried as temporary cash 
investments.
    Profit from sale of land used for transportation purposes, of 
noncarrier property and of securities acquired for investment purposes.
    Profit from company bonds reacquired.
    Decreases in the valuation allowance (contained within account 702) 
for the marketable equity securities included in current assets.

    (b) Gains from extinguishment of debt shall be aggregated and, if 
material, credited to account 570, ``Extraordinary Items,'' upon 
approval by the Board; however, gains from extinguishment of debt 
(excluding debt maturing serially) which is made to satisfy sinking fund 
requirements, shall be recorded in this account regardless of amount.
531  Railway operating expenses.
    This account shall include total expenses caused by operations, as 
shown in the primary expense accounts provided in these regulations.
534  Expenses of property used in other than carrier operations.
    This account shall include depreciation, rent, taxes, and other 
expenses incurred on property used in other than carrier operations.
    Note: If property for which rent expense is includable in this 
account is sublet, the rent from the sublease shall be included in 
account 506, Revenues from property used in other than carrier 
operations.

[42 FR 35017, July 7, 1977, as amended at 52 FR 4347, Feb. 11, 1987]
544  Miscellaneous taxes.
    This account shall include all accruals for taxes not provided for 
elsewhere, such as taxes on securities owned, and taxes on income from 
securities owned.
545  Separately operated properties; loss.
    (a) This account shall include amounts payable under the terms of 
agreements or contracts whereby the net loss resulting from the 
operation

[[Page 105]]

by others of properties of other companies having a separate corporate 
existence is to be paid, in whole or in part, by the accounting company.
    (b) In determining the amount payable by the accounting company, 
consideration shall be given not only to the operating revenues and 
operating expenses, but also to other items of income or deductions 
which affect that amount.
    Note A: The amounts receivable by the operating company shall be 
credited by it to account 518, Reimbursements received under contracts 
and agreements.
    Note B: Dividends or other returns upon securities issued by 
separately operated companies and held or controlled by the accounting 
company shall not be included in this account to offset a deficit 
payable, but in accounts 513, ``Dividend income,'' or 514, ``Interest 
income,'' as may be appropriate.

[42 FR 35017, July 7, 1977, as amended at 52 FR 4347, Feb. 11, 1987]
546  Interest on funded debt.
    This account shall include the current accruals of interest on all 
classes of long-term debt, the principal of which is includable in 
accounts 765, Funded debt unmatured; 766, Equipment obligations; 767, 
Receivers' and trustees' securities; 768, Debt in default; and 769, 
Accounts Payable; affiliated companies.
    Note A: This account shall not include charges for interest on 
funded debt obligations issued or assumed by the accounting company and 
owned by it, whether pledged as collateral or held in its treasury, in 
special deposits, or in sinking or other funds.
    Note B: When funded debt is incurred for new lines or extensions, or 
for addition and betterment purposes, the accruals of interest on such 
funded debt (less interest received on unexpended balances), to the date 
of completion or coming into service of the property so acquired shall 
be includable in the road and equipment accounts.
    Note C: This account shall be maintained so as to show separately: 
(a) Fixed interest which will be paid, or for which provision for 
payment will be made, when the interest matures; (b) interest in 
default; and (c) contingent interest determined to be payable.

[42 FR 35017, July 7, 1977, as amended at 52 FR 4347, Feb. 11, 1987]
547  Interest on unfunded debt.
    This account shall include interest accrued on unfunded debt, such 
as short-term notes payable on demand or having maturity dates of one 
year or less from dates of issue, and open accounts, including discount 
and expense on demand and short-term loans, interest on receipts 
outstanding for installments paid on capital stock, interest on deferred 
payments for public improvements, interest on tax deficiencies, 
overcharge claims and court awards, and other analogous items. The 
discount on short-term notes, if of a considerable amount shall be 
distributed through equal monthly charges, over the term of the notes.
    Note: When short-term notes or other evidences of unfunded 
indebtedness are issued for new lines or extensions or for addition and 
betterment purposes the accrual of interest to the date of completion or 
coming into service of the property shall be included in the road and 
equipment accounts.

[42 FR 35017, July 7, 1977, as amended at 52 FR 4347, Feb. 11, 1987]
548  Amortization of discount on funded debt.
    (a) This account shall be charged during each fiscal period with the 
proportion of the discount on funded debt obligations applicable to that 
period. This proportion shall be determined according to a rule the 
uniform application of which through the interval between the date of 
sale and the date of maturity will extinguish the discount on funded 
debt.
    (b) The charge to this account for any period must not be either 
greater or less than the proportion of the balance remaining unamortized 
applicable to that period so long as any portion of the discount remains 
unextinguished. However, the entire amount for the discount and expense 
applicable to any particular issue of obligations may be charged 
directly to this account at time of issue when the aggregate of such 
amounts does not appreciably affect the accounts. (See instruction 5-
3(b).)
549  Maintenance of investment organization.
    This account shall include the directly assignable administration 
expenses of the accounting company which are incident to its investments 
in leased or nonoperating physical

[[Page 106]]

property, and in stocks, bonds, or other securities.

                            Items of Expense

Advertising annual reports (lessor companies only).
Calls for bonds in accordance with sinking fund provisions of mortgages.
Directors' fees.
Printing and mailing dividend checks.
Publishing and mailing annual reports and other corporate statements to 
shareholders.
Publishing notices of declaration of dividends.
Law expenses.
Office expenses.
Salaries of officers, clerks, and attendant.
Stationery and printing.
    Note: Administration expenses incident to railway operation are 
includible in the primary accounts provided for in operating expense 
general account series 60-00-00.
550  Income transferred under contracts and agreements.
    (a) This account shall include the whole or any portion of the 
income of the accounting company payable to another company under the 
terms of agreements or contracts without obligation for reimbursement.
    (b) In determining the amount payable by the accounting company, 
consideration shall be given not only to operating revenues and 
operating expenses, but also to other items of income or deduction which 
affect that amount.
    Note A: The amount receivable by the other company shall be credited 
by it to account 512, ``Separately operated properties--Profit.''
    Note B: Dividends or other payments upon securities issued or 
assumed by the accounting company shall not be included in this account.

[42 FR 35017, July 7, 1977, as amended at 52 FR 4347, Feb. 11, 1987]
551  Miscellaneous income charges.
    (a) This account shall include items, not otherwise provided for in 
the other income accounts. This includes:

Income tax on the interest on the accounting company's funded debt when 
these taxes are assumed by the company.
Payments of old accounts previously written off.
Penalties and fines for violation of the Interstate Commerce Act or 
other federal and state laws.
Loss on sale of securities carried as temporary cash investments.
Loss on sale of land used for transportation purposes and of noncarrier 
property.
Loss on sale of securities acquired for investment purposes, and charges 
to write down the ledger value of such securities because of impairment 
in their value.
Loss from company bonds reacquired.
Increases in the valuation allowance (contained within account 702) for 
the marketable equity securities included in current assets.

    Contributions for charitable, social, or community welfare purposes 
that do not have a direct relation to the protection of company 
property, development of its business, or welfare of its employees.
    (b) Losses from extinguishment of debt shall be aggregated and, if 
material, charged to account 570, ``Extraordinary Items,'' upon approval 
by the Board; however, losses from extinguishment of debt (excluding 
debt maturing serially) which is made to satisfy sinking fund 
requirements, shall be included in this account regardless of amount.
    (c) Contributions for charitable, social, or community welfare 
purposes that have a direct relation to the protection of company 
property, development of its business, or welfare of its employees 
should be charged to account 61-61-99, Other Expenses--General and 
Administrative--Other.

(49 U.S.C. 12, 20, 304, 913, and 1012)

[42 FR 35017, July 7, 1977, as amended at 42 FR 64350, Dec. 23, 1977; 52 
FR 4347, Feb. 11, 1987]
553  Uncollectible accounts.
    This account shall include losses on receivable, notes, or claims 
that are not includible in account 63-61-00. ``General--Uncollectible 
Accounts--General and Administrative.''
555  Unusual or infrequent items (debit) credit.
    This account shall include material items unusual in nature or 
infrequent in occurrence, but not both, accounted for in the current 
year in accordance with the text of instruction 1-2(d), upon approval by 
the Board.

[[Page 107]]

556  Income taxes on ordinary income.
    This account shall include accruals for Federal, State and other 
income taxes applicable to ordinary income. See the text of account 590, 
for recording other income tax consequences.
557  Provision for deferred taxes.
    (a) This account shall include the net tax effect of all material 
timing differences [See definition 20(e)] originating and reversing in 
the current accounting period and the future tax benefits of loss 
carryforwards recognized in accordance with Instruction 1-10.
    (b) This account shall include credits for the amortization of the 
investment tax credit if the carrier elected to use the deferred method 
of accounting for the investment tax credit. (See instruction 1-10.)

[42 FR 35017, July 7, 1977, as amended at 52 FR 4347, Feb. 11, 1987]
560  Income or loss from operations of discontinued segments.
    This account shall include the results of operations of a segment of 
a business (see definition 23(a)), after giving effect to income tax 
consequences, that has been or will be discontinued in accordance with 
the text of instruction 1-2(d), upon approval by the Board.
562  Gain or loss on disposal of discontinued segments.
    This account shall include the gain or loss from the disposal of a 
segment of a business, after giving effect to income tax consequences, 
in accordance with the text of instruction 1-2(d), upon approval by the 
Board.
570  Extraordinary items (net).
    (a) This account shall include extraordinary items accounted for 
during the current accounting year in accordance with the text of 
instruction 1-2(d), upon submission of a letter from the carrier's 
independent accountants, approving or otherwise commenting on the item 
and upon approval by the Board.
    (b) This account shall be maintained in a manner sufficient to 
identify the nature and gross amount of each debit and credit.
    (c) Income tax consequences of charges and credits to this account 
shall be recorded in account 590, ``Income taxes on extraordinary 
items,'' or account 591, ``Provision for deferred taxes--extraordinary 
items.''
590  Income taxes on extraordinary items.
    This account shall include the estimated income tax consequences 
(debit or credit) assignable to the aggregate of items of both taxable 
income and deductions from taxable income which for accounting purposes 
are classified as unusual and infrequent, and are recorded in account 
570, ``Extraordinary Items (Net).'' The tax effect of any timing 
differences caused by recognizing an item in the account provided for 
extraordinary items in different periods in determining accounting 
income and taxable income shall be included in account 591, ``Provision 
for deferred taxes--extraordinary items.''
591  Provision for deferred taxes--extraordinary items.
    This account shall include debits or credits for the current 
accounting period for income taxes deferred currently, or for 
amortization of income taxes deferred in prior accounting periods 
applicable to items of revenue or expense included in account 570, 
``Extraordinary Items (Net).'' (See instruction 1-10.)
592  Cumulative effect of changes in accounting principles.
    This account shall include the cumulative effect of changing to a 
new accounting principle, after giving effect of income tax 
consequences, in accordance with instruction 1-2(d), upon approval by 
the Board.

                        Form of Income Statement
                       1I. Ordinary Items
 
0501  Railway operating revenues (exclusive of transfers from
 government authorities)........................................  ......
502  Railway operating revenues--transfers from government
 authorities for current operations.............................  ......
502  Railway operating revenues (amortization of deferred
 transfers from government authorities..........................  ......
531  Railway operating expenses.................................  ......
                                                                 -------
  Net Revenue from Railway Operation \1\........................  ......
 
                                                                 =======
1
[[Page 108]]

 
                        II. Other Income
 
0506  Revenues from property used in other than carrier
 operations.....................................................  ......
510  Miscellaneous rent income..................................  ......
512  Separately operated properties--profit.....................  ......
513  Dividend income............................................  ......
514  Interest income............................................  ......
516  Income from sinking and other funds........................  ......
517  Release of premiums on funded debt.........................  ......
518  Contributions from other companies.........................  ......
519  Miscellaneous income.......................................  ......
     Income from affiliated companies:
  Dividends.....................................................  ......
  Equity in undistributed earnings (losses).....................  ......
                                                                 -------
    Total income from affiliated companies......................  ......
                                                                 =======
    Total other income..........................................  ......
                                                                 =======
    Total income................................................  ......
 
                                                                 =======
           1III. Miscellaneous Deductions From Income
 
0534  Expenses of property used in other than carrier operations  ......
535  Taxes on property used in other than carrier operations....  ......
543  Miscellaneous rent expense.................................  ......
544  Miscellaneous taxes........................................  ......
545  Separately operated properties-loss........................  ......
549  Maintenance of investment organization.....................  ......
550  Income transferred to other companies......................  ......
551  Miscellaneous income charges...............................  ......
553  Uncollectible accounts.....................................  ......
                                                                 -------
    Total miscellaneous deductions..............................  ......
                                                                 =======
    Income available for fixed charges..........................  ......
 
                       1IV. Fixed Charges
 
0546  Interest on funded debt:
  (a) Fixed interest not in default.............................  ......
  (b) Interest in default.......................................  ......
547  Interest on unfunded debt..................................  ......
548  Amortization of discount on funded debt....................  ......
                                                                 -------
    Total fixed charges.........................................  ......
    Income after fixed charges..................................  ......
 
                                                                 =======
                      1V. Other Deductions
 
0546  Interest on funded debt: (c) Contingent interest..........  ......
 
                1VI. Unusual or Infrequent Items
 
0555  Unusual or infrequent items (debt) credit.................  ......
  Income (loss) from continuing operations (before income taxes)  ......
 
                1VII. Provision for Income Taxes
 
0556  Income taxes on ordinary income:
  Federal income taxes..........................................  ......
  State income taxes............................................  ......
  Other income taxes............................................  ......
557  Provision for deferred income taxes........................  ......
  Income from continuing operations.............................  ......
 
                 1VIII. Discontinued Operations
 
0560  Income or loss from operations of discontinued segments
 (less applicable income taxes of $----)........................  ......
562  Gain or loss on disposal of discontinued segments (less
 applicable income taxes of $----)..............................  ......
                                                                 -------
    Income (loss) before extraordinary items....................  ......
 
                                                                 =======
         1IX. Extraordinary Items and Accounting Changes
 
0570  Extraordinary items (net).................................  ......
590  Income taxes on extraordinary items........................  ......
591  Provision for deferred taxes--extraordinary items..........  ......
                                                                 -------
    Total extraordinary items...................................  ......
                                                                 =======
592  Cumulative effect of changes in accounting principles (less
 applicable income taxes of $----)..............................  ......
                                                                 -------
    Net income..................................................  ......
------------------------------------------------------------------------
\1\ Reconciliation of net railway operating income (NROI):
  Net revenues from railway operations..........................  ......
(556)  Income taxes on ordinary income..........................  ......
(557)  Provision for deferred income taxes......................  ......
(560)  Taxes applicable to income or loss from operations of
 discontinued segments..........................................  ......
(562)  Taxes applicable to gain or loss on disposal of
 discontinued segments..........................................  ......
  Income from lease of road and equipment (formerly account 509)  ......
  Rent for leased roads and equipment (formerly account 542)....  ......
                                                                 -------
    Net railway operating income................................  ......
 


(49 U.S.C. 304, 320)

[42 FR 35017, July 7, 1977, as amended at 43 FR 30558, July 17, 1978]



RETAINED EARNINGS ACCOUNTS--Table of Contents






Credit--Table of Contents




601  Credit balance (at beginning of calendar year).
    This account shall include the net credit balance in the retained 
earnings account at the beginning of the calendar year.
601.5  Prior period adjustments to beginning retained earnings account.
    This account shall include adjustments net of assigned income taxes, 
in accordance with the text of instruction 1-2(d), to the balance in the 
retained earnings account at the beginning of the calendar year, upon 
approval by the Board.
602  Credit balance transferred from income.
    This account shall show the net credit balance brought forward from 
the income account for the calendar year.
603  Appropriations released.
    This account is provided to return to unappropriated retained 
earnings the amount of appropriations no longer required. The account 
shall be subdivided

[[Page 109]]

to show the nature of the appropriations being released and the 
circumstances of the release shall be fully described.
606  Other credits to retained earnings.
    This account shall include other credit adjustments, net of assigned 
income taxes, not provided for elsewhere in this system but only after 
such inclusion has been authorized by the Board.



Debit--Table of Contents




611  Debit balance (at beginning of calendar year).
    This account shall include the net debit balance in the retained 
earnings account at the beginning of the calendar year.
612  Debit balance transferred from income.
    This account shall show the net debit balance brought forward from 
the income account for the calendar year.
616  Other debits to retained earnings.
    (a) This account shall include losses from resale of reacquired 
capital stock, and charges which reduce or write-off discount on capital 
stock issued by the company, but only to the extent that such charges 
exceed credit balances in account 795, ``Other capital,'' applicable to 
net gains from reacquisition and resale or retirement of such subclass 
of capital stock. See instruction 5-4.
    (b) This account shall also include other debit adjustments, net of 
assigned income taxes, not provided for elsewhere in this system but 
only after such inclusion has been authorized by the Board.
620  Appropriations for sinking and other funds.
    This account shall be charged and account 797, ``Retained earnings; 
Appropriated,'' shall be credited with amounts appropriated pursuant to 
provisions of reorganization plans, mortgages, deeds of trust, or other 
contracts requiring payments into sinking funds, capital funds, and 
other funds.
621  Appropriations for other purposes.
    This account shall be charged and account 797, ``Retained earnings; 
Appropriated,'' shall be credited with the amount of appropriations for 
general contingencies, indefinite possible future losses and other 
corporate purposes not provided for elsewhere. The appropriations shall 
be released when their respective purposes have been served.
623  Dividends.
    This account shall be charged with the amount of dividends declared 
on actually outstanding capital stock issued or assumed by the company. 
If the dividend is not payable in cash, the securities or other property 
to be distributed shall be described with sufficient particularity to 
identify the distribution. This account shall be subdivided to show 
separately the dividends declared on the various subclasses of capital 
stock.
    Note: This account shall not include charges for dividends on 
capital stock issued or assumed by the company and owned by it, whether 
pledged as collateral or held in its treasury, in special deposits, or 
sinking or other funds.



GENERAL BALANCE SHEET ACCOUNTS EXPLANATIONS--Table of Contents






Assets--Table of Contents




                             Current Assets

701  Cash.
    (a) This account shall include money, checks, sight drafts, and 
sight bills of exchange in the hands of the accounting company's 
financial officers and agents, or in transit from its agents and 
conductors for which such agents and conductors have received credit. It 
shall include, also, deposits with banks and trust companies available 
for use on demand, and savings accounts subject to the usual clause 
reserving the right to defer payment for a specified number of days.
    (b) The amount of checks and drafts, which have been transmitted to 
payees and which remain unpaid at the close of the accounting period, 
shall be credited to this account. When the amount

[[Page 110]]

of such checks and drafts cannot be determined with absolute accuracy, 
an estimate of the amount shall be used. Amounts not transmitted to 
payees shall be included in the appropriate liability accounts.
    Note: Compensating balances under an agreement which legally 
restricts the use of such funds shall not be included in this account. 
Such balances shall be included in account 703, ``Special Deposits,'' or 
717, ``Other Funds,'' as appropriate.
702  Temporary cash investments.
    This account shall include the cost of securities and other 
obligations acquired for the purpose of temporarily investing cash, such 
as United States Treasury certificates, marketable securities, time 
drafts receivable, demand loans, time loans, time deposits with banks 
and trust companies, and other similar investments of a temporary 
character, which are readily convertible into cash at substantially 
their recorded cost.
    This account shall be subdivided to reflect the marketable equity 
securities portion (and its corresponding valuation allowance) and other 
temporary investments. (See instruction 5-2.)
703  Special deposits.
    This account shall include cash deposits, either placed in the hands 
of trustees or under the direct control of the reporting company, which 
are restricted for specific purposes. Examples are those deposits made 
for the payment of dividends and interest due within one year, the 
liquidation of other current liabilities, to guarantee fulfillment of 
current contract obligations to meet specific operating requirements, or 
compensating balances (See definition 24) under an agreement which 
legally restricts the use of such funds, and which constitute support 
for short-term borrowing arrangements. Subaccounts may be set up, if 
necessary, to account for special deposits for specific purposes.
    Note: Deposits available for general company purposes shall be 
included in account 701, ``Cash.''
704  Loans and notes receivable.
    This account shall include the book value of all collectible 
obligations in the form of demand or time loans and notes receivable, or 
other similar evidences (except interest coupons) of money receivable 
within a time not exceeding one year from date of issue.
    Note A: Current loans and notes receivable from affiliated companies 
shall be included in account 708.5, ``Receivables from affiliated 
companies.''
    Note B: Obligations held as investments which mature more than one 
year after date of issue shall be included in accounts 721, 
``Investments and advances: Affiliated companies,'' or 722, ``Other 
investments and advances,'' as appropriate.
    Note C: Loans and notes receivable acquired for the purpose of 
temporarily investing cash shall be included in account 702, ``Temporary 
cash investments.''
705  Accounts receivable; interline and other balances.
    This account shall include the net debit balances receivable from 
other companies representing items such as interline freight, passenger, 
switching, and baggage revenues, charges for equipment interchanged on a 
per diem or mileage basis, and charges, for car repairs, loss and damage 
freight claims, and overcharge claims.
    Note: The amount to be entered in this account is not the net 
balance between this account and account 752, ``Accounts payable; 
Interline and other balances.'' Net credit balances payable to other 
companies shall be included in account 752.
706  Accounts receivable; customers.
    This account shall include amounts currently due from customers for 
transportation and other charges incidental to transportation, and from 
agents and other representatives charged with the collection or custody 
of current revenues.
    Note: Amounts advanced to general and special agents as working 
funds shall be included in account 710, ``Working funds.''
707  Accounts receivable; other.
    This account shall include amounts due in audited accounts, such as 
those due from the United States or other Governments for the 
transportation of mails and Government property, and from express 
companies for express facilities furnished under contract; miscellaneous 
bills against other railway companies, corporations, firms, and 
individuals; and other similar items.

[[Page 111]]

    Note A: The amount to be entered in this account is not the net 
balance between this account and account 754, ``Accounts payable; 
Other.''
    Note B: Amounts due from affiliated companies for miscellaneous 
bills and other items subject to current settlement shall be included in 
account 708.5, ``Receivables from affiliated companies.''
708  Interest and dividends receivable.
    This account shall include the amount of interest accrued to the 
date of the balance sheet on bonds, mortgages, notes, and other 
commercial paper owned, on loans made, open accounts, bank deposits, and 
the amount of dividends declared on stocks owned, and dividends accrued 
on such stocks when contracts require that the dividends be paid at 
stated times.
    Note A: No amount representing interest or dividends receivable 
shall be included in this account unless its payment is reasonably 
assured by past experience, anticipated provision, or otherwise.
    Note B: No dividends or other returns on securities issued or 
assumed by the accounting company shall be included in this account.
    Note C: If settlement of amounts included in this account is not 
made when due, such amounts that are not subject to current settlement 
shall be transferred to account 741, ``Other assets,'' at their 
estimated realizable value. Items of current character but of doubtful 
value, as well as noncurrent items, shall be written off to the extent 
of any estimated uncollectible portion by charge to account 553, 
``Uncollectible accounts''. If notes are taken in settlement of amounts 
included in this account, the amounts shall be transferred to account 
704, ``Loans and notes receivable,'' or account 741, as appropriate. 
(See instruction 5-1.)
    Note D: Current interest and dividends receivable from affiliated 
companies shall be included in account 708.5, ``Receivables from 
affiliated companies,'' and noncurrent amounts receivable shall be 
included in account 721, ``Investments and advances; Affiliated 
companies.''
708.5  Receivables from affiliated companies.
    This account shall include amounts due from affiliated companies 
which are subject to current settlement such as deposits, demand or time 
loans, notes receivable, interest, dividends, miscellaneous bills and 
similar items.
    Note: Receivables from affiliated companies, representing net debit 
balances for items such as operating revenues, charges for equipment 
interchanged, car repairs and claims, shall not be included in this 
account but in account 705, ``Accounts receivable; Interline and other 
balances.''
709  Accrued accounts receivable.
    This account shall include estimates of all unaudited current items 
receivable by the carrier to the date of the balance sheet, including 
those which are creditable to revenue, expense, or income accounts. 
Among the items which shall be included in this account are:

Amounts receivable from others for unreported interline traffic.
Amounts receivable from others for use of facilities, including 
equipment, for which bills have not been rendered.
Amounts receivable from others for services for which bills have not 
been rendered.
Rents receivable for which bills have not been rendered.

709.5  Allowance for uncollectible accounts.
    This account shall be credited with amounts provided for receivables 
which may become uncollectible, and shall be maintained to show the 
amount of each separate allowance set out below and the amounts of 
debits and credits thereto:
    (a) Allowance for receivables applicable to transportation 
operations. Credits to this subdivision shall be concurrently charged to 
account 636000, ``Uncollectible Accounts; General and administrative.''
    (b) Allowances for receivables not applicable to transportation 
operations. Credits to this subdivision shall be concurrently charged to 
account 553, ``Uncollectable accounts.''
710  Working funds.
    This account shall include amounts advanced to general and special 
agents, and to other officers and employees, as working funds from which 
certain expenditures are to be made and accounted for. It also includes 
advances to fast freight lines and to demurrage and other bureaus.
    Note: Advances to jointly owned or used terminal companies and other 
companies for permanent working funds or capital purposes shall be 
included in accounts 721, ``Investments and advances; Affiliated 
companies,''

[[Page 112]]

or 722, ``Other investments and advances,'' as appropriate.
711  Prepayments.
    This account shall include the balances in the accounts representing 
short-term prepaid rents chargeable to the appropriate rent accounts as 
the term is consumed for which the rents are paid; also short-term 
interest, and insurance premiums, taxes and licenses, and similar items 
paid in advance of their accrual, which are to be apportioned and 
charged, as they accrue, to the appropriate accounts.
712  Material and supplies.
    (a) This account shall include the balances representing the cost of 
all unapplied material, such as road and shop material, articles in 
process of manufacture by the accounting company, fuel, stationery, and 
dining car and other supplies. In determining the cost of material and 
supplies suitable allowance shall be made for any purchase discounts 
allowed. The cost shall include all specifically assignable 
transportation charges incurred in obtaining the delivery of such 
materials and supplies upon the premises of the carrier including 
loading and unloading, and a suitable proportion of purchasing and store 
expenses. The cost shall also include sales and excise taxes on material 
purchases; however, sales and excise taxes may be charged to account 
656000, ``Other taxes; General and administrative,'' provided this 
procedure will not adversely affect the accounts and is consistently 
followed. Taxes on gasoline, other motor fuel, and motor oil are also 
includible in this account.
    (b) Materials recovered for reuse in connection with construction, 
maintenance, or the retirement of property shall be charged to this 
account at cost, or average cost, estimated if not known, less 
accumulated depreciation, if any, plus the cost to restore the materials 
to a serviceable condition, or current market value, whichever is lower. 
(See definition 17, Salvage value.)
    (c) Scrap and other nonusable materials, including obsolete parts, 
shall be included in account 713, ``Other current assets,'' at the 
estimated salvage value when the sale of the materials is imminent and 
there is a relatively firm market price. Obsolete parts not subject to 
imminent sale shall be included in account 741, ``Other assets,'' at 
their net realizable value.
    (d) Material and supplies shall be credited to this account and 
charged to the appropriate operating expense or other account on the 
basis of recorded cost, average cost, or other recognized pricing 
system, provided that such system is consistently applied and is based 
on the cost of such material and supplies.
    (e) An inventory of material and supplies shall be taken during each 
calendar year and the necessary adjustments to bring this account into 
harmony with the actual inventory balances shall be made in the accounts 
of the year in which the inventories are taken. In effecting this 
adjustment, determined differences in accounting for important classes 
of material shall be equitably assigned among the accounts to which the 
classes of material are ordinarily chargeable. Other differences shall 
be equitably apportioned among the primary accounts to which material 
has been charged since the last inventory. (Also see instruction 5-
1(b).)
    Note: Balances representing the cost of unapplied construction 
material and supplies located at the point of use, which have been 
purchased for projected new roads and extensions, or for new railroad 
equipment, shall be included in account 90, ``Construction in 
progress.''
713  Other current assets.
    This account shall include amounts for other current assets which 
are not includible in the foregoing current asset accounts.
714  Deferred income tax debits.
    This account shall include the current portion of deferred income 
tax debits and credits determined in accordance with Instruction 1-10, 
when the balance is a net debit. A net credit balance shall be included 
in account 762, ``Deferred income tax credits''.

(49 U.S.C. 10321, 11145; 5 U.S.C. 553)

[47 FR 12350, Mar. 23, 1982]

[[Page 113]]

                              Special Funds

715  Sinking funds.
    (a) This account shall include the amount of cash, the ledger value 
of live securities of other companies, and other assets which are held 
by trustees of sinking and other funds for the purpose of redeeming 
outstanding obligations, including such assets held in the hands of the 
accounting company's treasurer when the assets are segregated in a 
distinct fund.
    (b) This account shall include amounts deposited with trustees on 
account of mortgaged property sold, where the proceeds are held for the 
redemption of securities; and also the par value (or the amount recorded 
for no par stock) of live securities issued or assumed by the accounting 
company and held in such funds.
    (c) A separate subaccount shall be kept for each fund. The title of 
each subaccount shall designate the obligation redeemable from the fund.
    Note: In stating the balance sheet in the annual reports to the 
Board the total amount of the funds and the par value (or the amount 
recorded for no par stock) of securities issued or assumed by the 
accounting company and held in the funds shall be shown in the short 
columns, and the net amount of the funds (total amount less securities 
issued or assumed) shall be shown in the long column.
716  Capital funds.
    (a) This account shall include cash and the ledger value of other 
assets held by trustees or by the accounting company's treasurer when 
segregated in distinct funds that have been (1) realized from the sale 
of equipment obligations or other long-term obligations and not yet 
applied toward the specific purposes for which the obligations were 
incurred, and (2) set aside in accordance with governmental, mortgage, 
or contractual requirements in connection with reorganizations or 
otherwise. This account shall also include funds deposited with trustees 
to be held until mortgaged property sold is replaced.
    (b) An appropriate record shall be maintained for securities issued 
or assumed by the accounting company and held in the funds, identifying 
those that are nominally issued or nominally outstanding.
    Note: Funds specifically set aside for sinking fund purposes shall 
be included in account 715, ``Sinking funds.'' If one purpose of a 
capital fund is to provide contributions to a sinking fund under 
specified conditions, the entire amount of the fund shall be included in 
this account until the contributions to the sinking fund are made, at 
which time the amounts thereof shall be transferred to account 715.
    Note: The ledger value of assets of the character indicated in 
paragraph (a)(2) of this section, shall be transferred to the 
appropriate current asset account when the assets are definitely 
assigned in advance of expenditure to the payment of interest or other 
current liabilities payable within one year.
717  Other funds.
    This account shall include the amount of cash and the ledger value 
of securities of other companies and other assets which are in the hands 
of trustees or managers of insurance, employees' pension, savings, 
relief, hospital, and other funds which have been raised and 
specifically set aside or invested for specific purposes not provided 
for elsewhere; also the par value (or the amount recorded for no par 
stock) of securities issued or assumed by the accounting company and 
held in such funds. A separate subaccount shall be kept for each fund.
    Note A: Sinking funds and capital funds are provided for in accounts 
715, ``Sinking funds,'' and 716, ``Capital funds,'' respectively.
    Note B: In stating the balance sheet in the annual reports to the 
Board, the total amount of the funds and the par value (or the amount 
recorded for no par stock) of securities issued or assumed by the 
accounting company and held in the funds shall be shown in the short 
columns, and the net amount of the funds (total amount less securities 
issued or assumed) shall be shown in the long column.
    Note C: This account shall not include funds held by the accounting 
company solely as trustee and in which it has no beneficial interest.
    Note D: This account shall include compensating balances (see 
definition 24) under an agreement which legally restricts the use of 
such funds and which constitute support for long-term borrowing 
arrangements.

[[Page 114]]

                               Investments

721  Investments and advances; affiliated companies.
    (a) This account shall include the ledger value of the accounting 
company's investment in securities issued or assumed by affiliated 
companies other than securities held in special deposits or special 
funds; and also investment advances made to affiliated companies not 
subject to current settlement; notes receivable from affiliated 
companies which mature later than 1 year from date of the balance sheet; 
and similar noncurrent items of affiliated companies.
    (b) This account shall be maintained in such manner as to show each 
of the following classes of investment in each affiliated company:
    (1) Stocks.
    (2) Bonds.
    (3) Other secured obligations.
    (4) Unsecured notes.
    (5) Investment advances.
    (c) A complete record of securities pledged shall be maintained to 
show separately the ledger value of securities pledged and unpledged in 
the annual report to the Board.
    Note A: Accounts with affiliated companies which are subject to 
current settlement, if their collection is reasonably assured, shall be 
classed as current assets, and if settlement is deferred beyond one year 
such items shall be transferred to this account.
    Note B: The term affiliated companies (also see definition 4) 
includes:
    1. Controlled companies, including companies solely controlled by 
the accounting company, and also companies jointly controlled by the 
accounting company and others under a joint arrangement.
    2. Controlling companies, including both companies solely 
controlling the accounting company, and companies which jointly control 
the accounting company under a joint arrangement.
    3. Companies controlled by controlled companies.
    4. Companies controlled by controlling companies.

By control (also see definition 4) is meant the ability to determine the 
action of a corporation. For the purposes of this account, the following 
are to be considered forms of control:
    (a) Right through title to securities issued or assumed to exercise 
the major part of the voting power in the controlled corporation.
    (b) Right through agreement or source other than title to 
securities, to name the majority of the board of directors, managers, or 
trustees of the controlled corporation.
    (c) Right to foreclose a first lien upon all or a major part in 
value of the tangible property of the controlled corporation.
    (d) Right to secure control because of advances made for 
construction of the operating property of the controlled corporation.
    (e) Right to control only in a specific respect the action of the 
controlled corporation.

A leasehold interest in the property of a corporation is not considered 
a form of control over the lessor corporation.
    Sole control is that which rests in one corporation.
    Joint control is that which rests in two or more corporations and 
which is held under a joint arrangement.
    Note C: The value of securities borrowed by the accounting company 
and pledged shall not be included in this account. A memorandum record 
shall be kept.
    Note D: The value of securities pledged for purposes other than that 
of security for funded debt or short-term loans shall be included in 
accounts 715, ``Sinking funds,'' 716, ``Capital funds,'' or 717, ``Other 
funds,'' as appropriate.
721.5  Adjustments; investments and advances--affiliated companies.
    (a) This account shall be credited with amounts charged to account 
551, ``Miscellaneous income charges,'' to provide for impairment in the 
value of investment securities and other assets included in account 721, 
``Investments and advances; affiliated companies.''
    (b) If provision is made for anticipated losses in specific assets, 
when the assets are written down or written off, or are sold or 
otherwise disposed of at a loss, the reduction in the book value or the 
losses sustained shall be charged to this account to the extent of the 
credit balance in the account applicable to the particular items 
involved, and the remainder, if any, shall be charged to account 551, 
``Miscellaneous income charges.'' Where a general provision for losses 
in unspecified asset

[[Page 115]]

values is maintained, all such losses resulting from write-downs, write-
offs, etc., shall be charged to this account to the extent of the total 
credit balance in the account, and the remainder, if any, shall be 
charged to account 551, ``Miscellaneous income charges.''
722  Other investments and advances.
    (a) This account shall include the ledger value of the accounting 
company's investment in securities issued or assumed by nonaffliated 
companies other than securities held in special deposits or special 
funds; and also investment advances made to nonaffiliated companies not 
subject to current settlement; notes receivable from nonaffiliated 
companies which mature later than 1 year from date of the balance sheet; 
and similar noncurrent items of nonaffiliated companies.
    (b) This account shall be maintained in such manner as to show each 
of the following classes of investment in each nonaffiliated company:
    (1) Stocks.
    (2) Bonds.
    (3) Other secured obligations.
    (4) Unsecured notes.
    (5) Investment advances.
    (c) A complete record of securities pledged shall be maintained to 
show separately the ledger value of securities pledged and unpledged in 
the annual report to the Board.
    Note A: Accounts with nonaffiliated companies which are subject to 
current settlement, if their collection is reasonably assured, shall be 
classed as current assets, and if settlement is deferred beyond one year 
such items shall be transferred to account 741, ``Other assets.''
    Note B: The term nonaffiliated companies includes all companies 
other than those defined as affiliated in note B of account 721, 
``Investments and advances: Affiliated companies.''
    Note C: The value of securities borrowed by the accounting company 
and pledged shall not be included in this account. A memorandum record 
shall be kept.
    Note D: The value of securities pledged for purposes other than that 
of security for funded debt or short-term loans shall be included in 
accounts 715, ``Sinking funds,'' 716, ``Capital funds,'' or 717, ``Other 
funds,'' as appropriate.
723  Adjustments; other investments and advances.
    (a) This account shall be credited with amounts charged to account 
551, ``Miscellaneous income charges,'' to provide for impairment in the 
value of investment securities and other assets included in account 722, 
``Other investments and advances.''
    (b) If provision is made for anticipated losses in specific assets, 
when the assets are written down or written off, or are sold or 
otherwise disposed of at a loss, the reduction in the book value or the 
losses sustained shall be charged to this account to the extent of the 
credit balance in the account applicable to the particular items 
involved, and the remainder, if any, shall be charged to account 551. 
``Miscellaneous income charges.'' Where a general provision for losses 
in unspecified asset values is maintained, all such losses resulting 
from write-down, write-offs, etc., shall be charged to this account to 
the extent of the total credit balance in the account, and the 
remainder, if any shall be charged to account 551, ``Miscellaneous 
income charges.''
724  Allowance for net unrealized loss on noncurrent marketable equity 
securities--Cr.
    This account shall reflect the amount by which aggregate cost 
exceeds market value for the noncurrent marketable equity securities 
found in accounts 721 and 722. This account shall be debited or credited 
so that the balance at the balance sheet date shall reflect such 
difference. (Refer to instruction 5-2.)

This account shall not include amounts by which aggregate cost exceeds 
market value if such differences are judged to be other than temporary. 
(Such differences should be charged to account 723.)

                            Tangible Property

731  Road and equipment property.
    This account shall include the accounting company's investment in 
road and equipment (including that held under contract for purchase), 
used or held for use as transportation property in existence at the date 
of the balance sheet. When property is retired from

[[Page 116]]

service, this account shall be credited with the ledger value of the 
property retired.
    Note A: This account shall not include any items representing titles 
to securities.
    Note B: When equipment or other property is acquired under an 
agreement which provides that the cost shall be paid in installments, 
the cost (its money value at time of purchase) shall be charged to the 
appropriate road and equipment accounts at the time the equipment is 
delivered to the carrier, and included in this account in the same 
manner as the cost of equipment purchased outright. When the par value 
of notes or other securities issued in payment, or in part payment, for 
such equipment is more (or less) than the actual cash value of the 
equipment at the time of the purchase, or of the proportion to which the 
securities are applicable, the difference between the par value of the 
securities and the actual cash value of the equipment, or of the 
proportion paid for by the securities, shall be charged (or credited) to 
the proper discount and premium accounts.
    Note C: Held for use, as referred to above, implies the ability of 
the carrier to substantiate within a reasonable period of time, by plan 
or policy, the probable future use which is to be made of the property.
732  Improvements on leased property.
    (a) This account shall include the cost of improvements made by the 
lessee to property which is held under lease from others or through 
control of the company owning the property, where such improvements are 
used by the lessee in transportation service, and the lessee is not to 
be reimbursed by the lessor for such improvements. (See instruction 2-
18.)
    (b) The carrier's records shall be kept in such manner as to show 
the debits and credits to this account in accordance with the provisions 
for road and equipment.
    Note A: This account shall not include any itmes representing titles 
to securities.
    Note B: When the lessor company includes in account 731, ``Road and 
equipment property,'' the cost of improvements made by the lessee to 
property, leased by it from the lessor and settlement is not made at the 
time for the cost thereof, the lessee, pending settlement with the 
lessor, shall include the cost thereof in account 721, ``Investments and 
advances; Affiliated companies,'' or 722, ``Other investments and 
advances,'' as appropriate.
733  Accumulated depreciation; improvements on leased property.
    (a) This account shall be credited with amounts concurrently charged 
to operating expenses or other authorized accounts for depreciation 
accrued on improvements to leased property, the cost of which is 
included in account 732, ``Improvements on leased property.''
    (b) The service value of each unit of property retired (and also of 
each minor item, less than a unit, retired and not replaced) for which 
this accumulated depreciation account has been established shall be 
charged to this account.
    (c) Instructions for depreciation accounts, rates of depreciation, 
and records to be maintained, as contained in instruction 4 for owned 
property, shall also apply to improvements on leased property.
734  Accumulated amortization; improvements on leased property--defense 
projects.
    This account shall include the amounts of accumulated past 
provisions for amortization of improvements to leased property 
applicable to defense projects, the cost of which is included in account 
732, ``Improvements on leased property.'' This account shall be charged 
with the amount of the credit balance applicable to specific property at 
the time the property is retired. The accounting company shall maintain 
separate subaccounts for amortization of (1) road property and (2) 
equipment.
735  Accumulated depreciation; road and equipment property.
    (a) This account shall be credited with amounts concurrently charged 
to operating expenses or other authorized accounts to cover the loss in 
service value of depreciable road and equipment property. It shall also 
include adjustments which the Board may authorize the accounting company 
to make such as adjustments for past accruals of depreciation, and 
provision for material abandonment or other losses applicable to 
nondepreciable property.
    (b) The service value of each unit of depreciable property retired 
(and also of each minor item, less than a unit,

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retired and not replaced) shall be charged to this account. This account 
shall also be charged for amounts for losses applicable to 
nondepreciable property retired for which provision was previously made 
by approval of the Board, and any resultant adjustment of such provision 
shall be referred to the Board for consideration and decision.
    (c) Comprehensive instructions pertaining to depreciation accounts, 
rates of depreciation, and records to be maintained, are contained in 
instruction 4.
736  Accumulated amortization; road and equipment property--defense 
project.
    This account shall include the amount of accumulated past provisions 
for amortization of road and equipment defense projects, the cost of 
which is included in account 731, ``Road and equipment property.'' This 
account shall be charged with the amount of the credit balance 
applicable to specific property at the time the property is retired. The 
accounting company shall maintain separate subaccounts for amortization 
of (1) road property and (2) equipment.
737  Property used in other than carrier operations.
    This account shall include the accounting company's investment in 
property other than property assignable to accounts 731, ``Road and 
equipment property,'' and 732, ``Improvements on leased property,'' such 
as hotels, restaurants, powerplants, which are not operated by the 
accounting company or another carrier in connection with its 
transportation service.

                           Items of Investment

Coal and other mines.
Commercial power plants.
Hotels and restaurants.
Lands and buildings not used in transportation operations.
Lands and other property acquired and held in anticipation of future 
use.
Mineral and timber lands.
Rails and other track material leased to others.
Saw mills and other manufacturing plants not operated in connection with 
transportation service.

738  Accumulated depreciation; property used in other than carrier 
operations.
    This account shall be credited with amounts charged to income or 
other authorized accounts for depreciation accrued on property, the cost 
of which is included in account 737, ``Property used in other than 
carrier operations.'' When such property is destroyed, sold, or 
otherwise retired from service, this account shall be charged with the 
amount of the credit balance applicable to the property retired.

                           Intangible Property

739  Organization expenses.
    This account shall include all fees paid to governments for the 
privilege of incorporation, and office and other expenditures incident 
to organizing the corporation and putting it in readiness to do 
business; cost of preparing and distributing prospectuses; special 
counsel fees; cost of preparing and issuing certificates of stock; cost 
of procuring the necessary certificates from State authorities; and 
other like costs necessary and proper in organizing the enterprise.
    Note: Cost of soliciting for loans or for the sale of bonds or other 
evidences of indebtedness shall be charged to balance sheet account 743, 
``Other deferred debits.'' (See instruction 5-3.)

                    Other Assets and Deferred Debits

741  Other assets.
    This account shall include the estimated value of salvage 
recoverable from property retired when the recovery of the salvage is 
deferred for any reason. (See instruction 2-5 and 2-7.) This account 
shall also include the estimated realizable amount for other assets of 
doubtful value, collection of which within one year is not assured; also 
other deferred assets and miscellaneous assets not otherwise provided 
for in general balance sheet accounts. (See instruction 5-1.)
743  Other deferred debits.
    (a) This account shall include the amount of debit balances in 
suspense accounts that cannot be cleared and

[[Page 118]]

disposed of until additional information is received, such as frieght 
claims paid when found to be correct, but in advance of investigation 
with other carriers; unextinguished discount on short-term notes; 
unadjusted debit items not otherwise provided for and similar items the 
proper disposition of which is uncertain
    (b) This account shall also include the aggregate amount of the 
expenses incurred in connection with the issuance of each class of the 
carrier's outstanding long-term or equipment obligations, such as fees 
for listing long-term obligations on stock exchanges, legal and other 
fees, cost of tax stamps and similar items. (See definition 9.) Separate 
subdivisions shall be maintained for each issue of such obligations. 
(See instruction 5-3.)
744  Accumulated deferred income tax debits.
    This account shall include the amount of deferred noncurrent income 
tax debits and credits determined in accordance with Instruction 1-10 
when the balance is a net debit. A net credit balance shall be included 
in account 786, ``Accumulated deferred income tax credits''.

(49 U.S.C. 10321, 11145; 5 U.S.C. 553)

[47 FR 12350, Mar. 23, 1982]



Liabilities and Shareholders' Equity--Table of Contents




                           Current Liabilities

751  Loans and notes payable.
    (a) This account shall include the balances representing obligations 
outstanding in the form of loans and notes payable or other similar 
evidence (except interest coupons) of indebtedness payable on demand or 
within a time not exceeding one year from date of issue.
    (b) This account shall be kept in such form so as to show separately 
the amounts of notes payable within one year from date of issue that are 
secured by collateral.
    Note A: Loans and notes payable to affiliated companies which are 
subject to current settlement shall be included in account 757, 
``Payables to affiliated companies,'' and noncurrent obligations in 
account 769, ``Accounts payable; Affiliated companies.''
    Note B: This account shall not include obligations due within one 
year which are intended to be refinanced on a long-term basis. Long-term 
refinancing of short-term obligations means: (1) Replacement with long-
term obligations or equity securities, or (2) renewal, extension, or 
replacement with short-term obligations for an uninterrupted period 
extending beyond one year from the balance sheet date.
    The intention to refinance on a long-term basis shall be supported 
by the ability to refinance. Evidence of this ability includes either: 
(1) The actual issuance of an obligation, after the balance sheet date 
but before the balance sheet is issued, or (2) before the balance sheet 
is issued, the existence of a financing agreement which is long-term and 
based on terms readily determinable with no existing violations of its 
provisions, and with a lender which is financially capable of honoring 
the agreement.
752  Accounts payable; interline and other balances.
    This account shall include the net credit balances payable to other 
companies representing items such as interline freight, passenger, 
switching and baggage revenues, charges for equipment interchanged on a 
per diem or mileage basis, and charges for car repairs, loss and damage 
freight claims, and overcharge claims.
    Note: The amount to be entered in this account is not the net 
balance between this account and account 705, ``Accounts receivable; 
Interline and other balances.'' Net debit balances receivable from other 
companies shall be included in account 705.
753  Audited accounts and wages payable.
    This account shall include the amount of audited vouchers or 
accounts and audited payrolls unpaid on the date of the balance sheet. 
It shall include balances representing unclaimed wages and outstanding 
pay and time or discharge checks issued in payment of wages and all 
other unpaid vouchered items.
    Note: The amount of checks and drafts, which have been transmitted 
to payees and which remain unpaid at the close of the accounting period, 
shall be credited to account 701, ``Cash.''
754  Accounts payable; other.
    This account shall include outstanding drafts drawn by station 
agents, conductors' refund and extra-fare

[[Page 119]]

checks not presented for redemption, taxes collected from employees and 
others for the account of taxing agencies, and other items of the nature 
of demand liabilities not covered by accounts 751, 752, 753, 755, 756, 
and 757.
    Note A: The amount to be reported under this account is not the net 
balance between this account and account 707, ``Accounts receivable; 
Other.''
    Note B: The amount of checks and drafts, which have been transmitted 
to payees and which remain unpaid at the close of the accounting period, 
shall be credited to account 701, ``Cash.'' When the amount of such 
checks and drafts cannot be determined with absolute accuracy an 
estimate of the amount shall be used.
    Note C: Deposits and other items of affiliated companies subject to 
current settlement shall be included in account 757, ``Payables to 
affiliated companies.''
755  Interest payable.
    This account shall include the amount of matured and unpaid interest 
on funded debt, and other obligations of the accounting company for 
which provision has been made for current settlement. This account shall 
also include the amount of interest subject to current settlement 
accrued to the date of the balance sheet, but payable after that date, 
on obligations of the accounting company.
    Note: Interest payable on debt to affiliated companies, if subject 
to current settlement, shall be included in account 757, ``Payables to 
affiliated companies.'' Noncurrent interest shall be included in account 
769, ``Accounts payable; Affiliated companies.'' Interest payable to 
others which is not paid when it matures shall be included in account 
781. ``Interest in default,'' if not subject to current settlement. 
Where interest is in default, subsequent accruals shall be credited 
directly to account 781.
756  Dividends payable.
    This account shall include the amount of dividends payable on 
capital stock but unpaid, at the date of the balance sheet.
    Note: Dividends payable to affiliated companies shall be included in 
account 757, ``Payables to affiliated companies.''
757  Payables to affiliated companies.
    This account shall include amounts payable to affiliated companies 
which are subject to current settlement such as deposits, demand or time 
loans, notes payable, interest, dividends, miscellaneous bills, and 
similar items.
    Note: Payables to affiliated companies, representing net credit 
balances for items such as revenues, charges for equipment interchanged, 
car repairs and claims, shall not be included in this account but in 
account 752, ``Accounts payable; Interline and other balances.''
759  Accrued accounts payable.
    This account shall include estimates of unaudited items payable by 
the carrier to the date of the balance sheet, including those which are 
chargeable to revenue, expense, or income accounts. Among the items 
which should be included in this account are:

Rents payable.
Amounts payable to others for unreported interline traffic.
Amounts payable to others for use of facilities, including equipment, 
for which bills have not been rendered.
Amounts payable to others for services for which bills have not been 
rendered.
Estimated amounts payable within one year covering liability for claims 
for injuries to persons, loss and damage, and similar items.
Amounts payable (estimated if necessary) within one year pursuant to 
agreements with labor organizations or otherwise for employees vacations 
now earned.

760  Federal income taxes accrued.
    This account shall be credited with the amount accrued for Federal 
income taxes which has been concurrently charged to the appropriate 
income or other authorized accounts. Credits to this account that are 
based upon estimates shall be adjusted during the year so that this 
account may show, as nearly as practicable the approximate amount of the 
carrier's unpaid liability for such taxes. Payments of taxes for which 
accruals have been made shall be debited to this account.
761  State and other income taxes accrued.
    This account shall be credited with the amounts accrued for state 
and other income taxes which have been concurrently charged to the 
appropriate income or other authorized accounts. Credits to this account 
that are based upon estimates shall be adjusted during the year so that 
this account

[[Page 120]]

may show, as nearly as practicable, the approximate amount of the 
carrier's unpaid liability for such taxes. Payments of taxes for which 
accruals have been made shall be debited to this account.
761.5  Other taxes accrued.
    (a) This account shall be credited with the accruals of all taxes, 
other than income taxes, which have been concurrently charged to the 
appropriate income or other accounts for taxes. Such accruals may be 
based upon estimates, provided such estimates shall be adjusted during 
the year so that this account may show, as nearly as practicable, the 
approximate amount of the carrier's unpaid liability for such taxes. 
Payments of taxes for which accruals have been made shall be debited to 
this account.
    (b) The records supporting the entries in this account shall be kept 
to show separately by classes of taxes the amount of the tax accruals 
for the current year and adjustments of accruals for prior years.
    Note: Amounts for prepayments of taxes shall be included in account 
711, ``Prepayments.''
762  Deferred income tax credits.
    This account shall include the current portion of deferred income 
tax charges and credits determined in accordance with Instruction 1-10 
when the balance is a net credit. A net debit balance shall be included 
in account 714, ``Deferred income tax debits''.

(49 U.S.C. 10321, 11145; 5 U.S.C. 553)

[47 FR 12350, Mar. 23, 1982]
763  Other current liabilities.
    There shall be included in this account the principal amount of 
unpresented bonds drawn for redemption through the operation of sinking 
and redemption fund agreements, also the principal amount of unpresented 
fund debt obligations, and receivers' and trustees' securities which 
have matured (for which provision has been made for current settlement), 
and other current liabilities not includible in the foregoing current 
liability accounts.
764  Equipment obligations and other long-term debt due within one year.
    This account shall include the total amount of bonds, equipment 
obligations, and other long-term debt, including obligations maturing 
serially or payable in installments which are due and payable within one 
year, and for which arrangements for long-term refinancing have not been 
made (See note B to account 751, ``Loans and notes payable'') or for 
which no sinking funds have been provided. This account shall be 
subdivided according to the different classes of debt.

                    Long-Term Debt Due After One Year

765  Funded debt unmatured.
    (a) This account shall include the total par value of unmatured debt 
(other than equipment obligations), maturing more than one year from the 
close of the accounting period, including obligations due within one 
year which are expected to be refinanced on a long-term basis (see note 
B to account 751, ``Loans and notes payable''), whether the securities 
were issued by the accounting company or the payment was assumed by the 
accounting company after being issued as the debt of other companies. 
(See account 764, ``Equipment obligations and other long-term debt due 
within one year.'')
    (b) The amounts included in this account shall be divided to show 
the par value of (1) certificates or other evidences of funded debt 
(pledged and unpledged) held in the company's treasury, by its agents or 
trustees, or otherwise subject to its control, including both those 
reacquired after actual issue and those nominally but never actually 
issued; and (2) certificates or other evidences of funded debt issued 
and actually outstanding, being those not held by the company, its 
agents or trustees, or subject to its control.
    (c) The amounts included herein shall be further divided so as to 
show the amount of each class of funded debt, as follows:
    (1) Mortgage bonds. Bonds secured by lien on physical property and 
not includible in the other subdivisions of this account.
    (2) Collateral trust bonds. Bonds and notes secured by a lien on 
securities or

[[Page 121]]

other negotiable paper; and stock trust certificates that are similar in 
character to collateral trust bonds.
    (3) Income bonds. Bonds which are a lien on a carrier's revenue 
alone, or bonds which, while being a lien on its property and 
franchises, can claim payment of interest only in case interest is 
earned.
    (4) Miscellaneous obligations. All funded obligations not provided 
for by the other subdivisions of this account, also notes, unsecured 
certificates of indebtedness, debenture bond, plain bonds, real estate 
mortgages executed or assumed and other similar obligations maturing 
more than one year from date of issue, but excluding liabilities for 
assessments for public improvements and those evidenced by conditional 
or deferred equipment purchase contracts for which provision is made in 
accounts 782, ``Other liabilities,'' and 766, ``Equipment obligations,'' 
respectively.
    (5) Receipts outstanding for funded debt. Receipts for payments on 
account of funded debt. When certificates are issued for such payments, 
the par value shall be included in the account covering the class of 
funded debt for which the certificates are issued.
    (d) Each of the above classes shall also be divided into subclasses 
according to differences in mortgage or other lien or security therefor, 
rate of interest, interest dates, or date of maturity. Parts of any 
issue agreeing in other characteristics but maturing serially may be 
treated as of the same subclass.
    (e) Records shall be maintained in such manner as to show (1) 
securities the issuance or assumption of which has been authorized by 
the Board under provisions of the Interstate Commerce Act, and similar 
securities issued or assumed prior to the effective date of such 
provisions of the Act, and (2) other obligations of a kind which may 
legally be issued or assumed without such authorization.
    Note A: Securities (other than equipment obligations) maturing one 
year or less from date of issue shall be included in accounts 757, 
``Payables to affiliated companies,'' 769, ``Accounts payable; 
Affiliated companies,'' or 751, ``Loans and notes payable,'' as 
appropriate, except that where an issue of securities maturing serially 
over a period of years contains short-term obligations such obligations 
may be included as funded debt. Mature funded debt shall be included in 
account 763, ``Other current liabilities,'' if provision has been made 
for current settlement. If no provision has been made for current 
settlement, matured funded debt shall be included in account 768, ``Debt 
in default,'' except that when the collection of matured funded debt of 
affiliated companies is not enforced by controlling companies, the 
principal amount (to the extent held by a controlling company) shall be 
included in account 769, ``Accounts payable; Affiliated companies.''
    Note B: See definitions 2, actually issued; 3, actually outstanding; 
13, nominally issued; and 14, nominally outstanding.
    Note C: Nonnegotiable notes having a maturity of more than one year 
after date of issue, held by affiliated companies, shall be included in 
account 769, ``Accounts payable; Affiliated companies.''
    Note D: Securities nominally issued or reacquired and held in the 
company's treasury, except securities held by trustees in sinking or 
other funds, shall be included in a subdivision of this account. In the 
general balance sheet statement the total unmatured funded debt included 
in this account shall be shown in the first short column. The amount 
nominally but not actually issued and the amount nominally outstanding 
shall be shown in the second short column, and in the long column shall 
be shown the amount actually outstanding.
766  Equipment obligations.
    (a) This account shall include the par value of equipment securities 
and the principal amount of contractual obligations for the purchase of 
equipment, excluding principal or obligations maturing serially or 
payable in installments within one year from the close of the accounting 
period, and including obligations due within one year which are expected 
to be refinanced on a long-term basis (see account 764, ``Equipment 
obligations and other long-term debt due within one year''); for 
explanation of long-term refinancing, see note B to account 751, ``Loans 
and notes payable.''
    (b) The amounts included herein shall be divided as follows:
    (1) Principal amount of equipment securities including those 
maturing serially, issued or assumed by the accounting company or by 
receivers and trustees, which have been authorized by the Board under 
provisions of the Interstate Commerce Act and similar securities issued 
or assumed prior to

[[Page 122]]

the effective date of such provisions of the act.
    (2) Principal sums of obligations for equipment purchased under 
conditional or deferred payment contracts, which may be legally entered 
into or assumed by the accounting company or by receivers and trustees, 
without authorization by the Board.
766.5  Capitalized lease obligations.
    (a) Long-term leases which are clearly in substance installment 
purchases shall be capitalized. The liability under such leases which 
have been capitalized in fixed asset accounts shall be recorded in this 
account. (See instruction 2-20.)
    (b) This account shall be kept so as to show the liability under 
each lease obligation.
    Note A: The portion of the liability for long-term leases which is 
payable within 1 year of the close of the accounting period is 
includible in account 764, Equipment obligations and other long-term 
debt due within one year.
    Note B: Leases which merely state the right to use property and a 
related obligation to pay specific rents over a definite future period 
shall not be considered to be assets and liabilities.
(49 U.S.C. 12, 20, 304, 913 and 1012)

[42 FR 56611, Oct. 27, 1977]
767  Receivers' and trustees' securities.
    When receivers or trustees acting under the orders of a court are in 
possession of the property of the company, and under the order of such 
court issue or assume evidences of indebtedness (other than equipment 
securities or obligations) the par value of such evidences shall be 
credited to this account.
    Note: The par value of equipment securities or the principal amount 
of obligations incurred for the purchase of equipment under conditional 
or deferred payment contracts shall be included in account 766, 
``Equipment obligations.''
768  Debt in default.
    This account shall include amounts transferred from other accounts 
representing matured funded securities or obligations, receivers' and 
trustees' securities, equipment obligations and short-term notes, when 
maturity dates of such obligations have not been extended
    Note A: The principle amount of matured funded debt of affiliated 
companies the collection of which is not enforced by the controlling 
company shall (to the extent of the principal amount held by the 
controlling company) be included in account 769, ``Accounts payable; 
Affiliated companies.''
    Note B: The principal amount unpresented funded debt obligations 
which have matured, and for which provision has been made for payment 
shall be included in account 763, ``Other current liabilities.''
769  Accounts payable; affiliated companies.
    This account shall include the par value of nonnegotiable notes 
issued to affiliated companies; also matured funded debt of affiliated 
companies held by controlling companies where there is no agreement for 
an extension as to time of payment and collection of the principal is 
not enforced; credit balances in open accounts with such companies other 
than credit balances classable as current liablilities, and interest 
accrued on notes, matured funded debt of affiliated companies and open 
accounts included in this account, when such interest is not subject to 
current settlements. The amounts included herein shall be divided as 
follows:
    (a) Notes, including not only nonnegotiable notes that run longer 
than a term of one year, but also such notes payable on demand or within 
one year from the date of issue when it is mutually agreed that the 
notes shall not be enforced as current assets by the holder.
    (b) Par value of matured funded debt of affiliated companies held by 
controlling companies where there is no agreement for an extension of 
time and collection is not enforced.
    (c) Open accounts not subject to current settlement.
    (d) Interest accrued on amounts included in this account when not 
subject to current settlement.
    Note A: Accounts with affiliated companies which are subject to 
current settlement shall be classed as current assets or current 
liabilities, as appropriate.
    Note B: No item shall be included in this account which is not known 
to be the property of an affiliated company.

[[Page 123]]

    Note C: The term affiliated companies includes:
    1. Controlled companies, including companies solely controlled by 
the accounting company, and also companies jointly controlled by the 
accounting company and others under a joint arrangement. (See definition 
4.)
    2. Controlling companies, including both companies solely 
controlling the accounting company, and companies which jointly control 
the accounting company under a joint arrangement.
    3. Companies controlled by controlled companies.
    4. Companies controlled by controlling companies.
    By control (See definition 8) is meant the ability to determine the 
action of a corporation. For the purposes of this account, the following 
are to be considered forms of control:
    (a) Right through title to securities issued or assumed to exercise 
the major part of the voting power in the controlled corporation.
    (b) Right through agreement of some character or through some source 
other than title to securities, to name the majority of the board of 
directors, managers, or trustees of the controlled corporation.
    (c) Right to foreclose a first lien upon all or a major part in 
value of the tangible property of the controlled corporation.
    (d) Right to secure control in consequence of advances made for 
construction of the operating property of the controlled corporation.
    (e) Right to control only in a specific respect the action of the 
controlled corporation.
    A leasehold interest in the property of a corporation is not to be 
classed as a form of control over the lessor corporation.
    Sole control is that which rests in one corporation.
    Joint control is that which rests in two or more corporations and 
which is held under a joint arrangement.
770.1 Unamortized debt discount.
    This account shall include the total of the net debit balances 
representing the excess of the discount over the premimium in connection 
with the issuance of each class of the carrier's outstanding long-term 
or equipment obligations. Separate subdivisions shall be maintained for 
each issue of such obligations. (See instruction 5-3.)
    Note A: Issue costs related to long-term debt (debt expense) shall 
be included in account 743, ``Other deferred debits.'' (See instruction 
5-3.)
    Note B: When long-term obligations are refinanced the balance of 
debt discount and expense pertaining to the old obligations shall be 
transferred to account 551, ``Miscellaneous income charges.''
770.2  Unamortized premium on debt.
    This account shall include the total of all credit balances 
representing the excess of the premium over the discount and expenses in 
connection with the issuance of each class of the carrier's outstanding 
long-term or equipment obligations. Separate subdivisions shall be 
maintained for each issue of obligations. (See instruction 5-3.)

                       Other Long-Term Liabilities

771  Accrued liability; pension and welfare.
    (a) This account shall include the credit balances accrued 
representing the estimated liability of the carrier for amounts provided 
by charges to operating expenses, including amounts contributed by 
employees, irrespective of whether carried in special funds or in 
general funds of the carrier, for pensions, accident and death benefits, 
savings, relief, hospital, or other provident purposes.
    (b) The carrier may use the ``full accrual basis'' to account for 
pension costs upon prior approval of the Board. Full accrual basis as 
used herein means recording in the accounts now and hereafter costs of 
employees pensions accrued, including credits for past services, upon 
the basis of actuarial computations, even though the sum has not been 
funded by payment to the trustees. Applications for such accounting 
shall show the method of computation, together with the carrier's 
proposal for recording in the accounts the related income tax credits to 
be realized in subsequent years.
    (c) This account shall be charged when payments are made to retired 
employees, or disbursements are made for the purposes for which 
liability was provided.
    (d) Separate subaccounts shall be maintained to show the amount 
provided for each liability and the nature of and amounts of debits and 
credits to the subaccounts.

[[Page 124]]

772  Accrued liability; leased property.
    (a) This account shall be credited with amounts concurrently charged 
to operating expenses or other accounts to cover the accrued liability 
on leased road and equipment when settlement between the accounting 
carrier and the lessor is not made currently. The amounts recorded shall 
include unsettled rent, based on depreciation or other factors, and 
liability for property retired.
    (b) This account shall be divided to show the liability to (1) 
affiliated companies (See definition 4), and (2) others.
774  Accrued liability; casualty and other claims.
    (a) This account shall be credited with the amounts charged to 
operating expense to provide for estimated liabilities for claims for 
deaths of or injuries to employees and others, and for damages to 
property not owned or held under lease by the carrier; for claims for 
loss, destruction, damage, or delays to property entrusted to the 
carrier for transportation or storage; for revenue over charges, such as 
those covered by reparation claims; and for similar items. No credits 
shall be made to this account for amounts recoverable from insurance 
companies or others.
    (b) Separate subaccounts shall be maintained to show the amount 
provided for each liability and the nature of and amounts of debits and 
credits to the subaccounts.
    (c) If settlements for claims when audited are charged to this 
account, the balances for each year shall be kept separately until all 
items have been adjusted and cleared. If the settlements when audited 
are charged to the appropriate expense accounts, the balance in this 
account shall be adjusted through the expense accounts so as to reflect 
the probable liability at the close of each accounting period for claims 
which have been or may be filed for actuarial occurrences.
    (d) Estimates of amounts payable within one year covering liability 
for claims shall be transferred from this account to account 759, 
``Accrued accounts payable.''
775  Other accrued liabilities.
    (a) This account shall be credited with the amounts accrued for 
estimated liabilities or losses provided by charges to operating expense 
or income accounts which are not provided for in any of the preceding 
accrued liability accounts.
    (b) Separate subaccounts shall be maintained to show the amount 
provided for each liability and the nature of and amounts of debits and 
credits to the subaccounts.
    (c) Upon accomplishment of the purpose for which each accrued 
liability was provided in this account, any remaining balance in the 
applicable subaccount shall be cleared to the appropriate operating 
expense or other account. Prior Board approval shall be required for 
clearance of balances in accrued liability subaccounts which were 
originally established by authority of the Board.
    (d) Estimates of amounts payable within one year covering any 
liability included in this account shall be transferred to account 759, 
``Accrued accounts payable.''
781  Interest in default.
    This account shall include the amount of matured and unpaid interest 
(for which no provision has been made for current settlement) on all 
indebtedness issued or assumed by the accounting company except interest 
which is added to the principal of the debt on which incurred. Where 
interest is in default, subsequent accruals shall be credited to this 
account.
    Note: Interest matured and unpaid on debt to affiliated companies, 
if not subject to current settlement, shall be included in account 769, 
``Accounts payable; Affiliated companies.''
782  Other liabilities.
    This account shall include assessments for public improvements; 
retained amounts due governmental agencies for construction work; 
percentages due contractors to be paid upon completion of contracts; 
deposits for construction of side tracks to be refunded on basis of an 
agreed portion of the earnings from the traffic handled over the tracks 
and similar liabilities

[[Page 125]]

not payable within one year: This account shall also include other 
deferred and noncurrent liabilities not otherwise provided for in 
general balance sheet accounts. Assessments for public improvements and 
amounts due governmental agencies and others for payments to be made 
within one year, shall be included in account 763, ``Other current 
liabilities,'' or other appropriate current liability account.
783  Deferred revenues--transfers from government authorities.
    This account shall include amounts representing the cost of 
acquisition, addition to, or improvement of depreciable operating 
property received, or receivable from Federal, state, or local 
authorities. Items to be included in this account shall be determined in 
accordance with instruction 1-15.
    An appropriate record shall be maintained of each asset associated 
with these transfers showing: (1) Original cost to carrier (or fair 
value if not purchased), (2) accumulated depreciation, and (3) estimated 
salvage value, if any.
    This account shall be charged periodically, and account 503, 
``Railway Operating Revenues--Amortization of Deferred Transfers from 
Government Authorities,'' shall be credited with amounts equal to the 
depreciation costs of the assets to which they apply. When such assets 
are retired or otherwise disposed of, this account shall be charged, and 
account 503 concurrently credited with any remaining associated amounts. 
(See instruction 1-15.)
    Note A: This account shall not include government transfers in the 
form of, or designated for the purchase of land or other non-depreciable 
property. Transfers of this type are includible in account 795, ``Other 
Capital.''
    Note B: This account shall not include transfers from the Federal 
Government to either Amtrak or ConRail representing the cost of 
depreciable and non-depreciable operating property.
(49 U.S.C. 304, 320)

[43 FR 30558, July 17, 1978]

                            Deferred Credits

784  Other deferred credits.
    (a) This account shall include the amount of credit balances in 
suspense accounts that cannot be disposed of until services are 
performed or additional information is received, such as amounts 
received from sale of mileage tickets, to be disposed of as mileage is 
honored; amounts received from sales of excess baggage script, to be 
disposed of as coupons are honored; interchangeable mileage credential 
ticket redemption funds, amounts collected from the sale of damaged, 
unclaimed, and over freight held pending final disposition, unadjusted 
credit items not otherwise provided for; and similar items, the proper 
disposition of which is uncertain.
786  Accumulated deferred income tax credits.
    (a) This account shall be credited with the noncurrent portions of 
deferred income tax debits and credits when the balance is a net credit, 
as determined by Instruction 1-10. A net debit balance shall be included 
in account 744, ``Accumulated deferred income tax debits''.
    (b) This account shall be credited with the amount of investment tax 
credits utilized in the current year for income tax purposes but 
deferred for accounting purposes (see Instruction 1-10).
    (c) This account shall be concurrently debited with amounts credited 
to account 557, ``Provision for deferred taxes,'' representing 
amortization of amounts for investment tax credits deferred in prior 
accounting periods.
    (d) This account shall be maintained in such a manner as to show 
separately:
    (1) the unamortized balance of deferred income taxes and deferred 
investment tax credit separately as of the beginning and as of the end 
of each year (2) the entries that affected the account balance, and (3) 
the current year's net credits or charges applicable to timing 
differences and deferred investment tax credits.
    Note A: For definitions of income tax terminology see Definition 20. 
Account 557, ``Provision for deferred taxes'', and account 591, 
``Provision for deferred taxes--Extraordinary item,'' shall concurrently 
be charged (credited) with the net effect of material timing effects. 
Other related deferred income tax balance sheet accounts are:
Account 714, ``Deferred income tax debit.''

[[Page 126]]

Account 744, ``Accumulated deferred income tax debits.''
Account 762, ``Deferred income tax credits.''
(49 U.S.C. 10321, 11145; 5 U.S.C. 553)

[47 FR 12350, Mar. 23, 1982]

                          Shareholders' Equity

791  Capital stock.
    (a) This account shall include the par value of stocks with par 
value; the stated value of no par stock having a stated value; and the 
cash value of the consideration received or the amount approved by the 
Board for no par stocks without stated value for all shares of capital 
stock or other form of proprietary interest in the accounting company 
which have been issued to bona fide purchasers and have not been 
reacquired and canceled, also shares of stock nominally issued.
    (b) This account also shall include amounts transferred from 
retained earnings for no par stock without stated value when approved by 
the Board.
    (c) The amount of the consideration received from the sale of par 
value stock and no par stock having a stated value in excess of the 
amount credited to this account shall be credited to account 794, 
``Premiums and assessments on capital stock.''
    (d) When capital stock is retired or canceled, this account shall be 
charged with the amount at which such stock is carried in this account. 
In the case of no par stock without stated value, the amount to be 
charged shall be the proportion, applicable to the reacquired shares 
immediately prior to reacquisition, of the total book liability included 
herein of actually outstanding shares of the particular class and series 
of stock of which the reacquired shares are a part.
    (e) The amounts included in this account shall be recorded so as to 
show (1) par value of shares of par value stock; the stated value of 
shares of no par stock, and the amount paid in or approved by the Board 
for no par stock without stated value (pledged or unpledged), held in 
the company's treasury, by its agents or trustees, or otherwise subject 
to its control, including shares nominally but never actually issued and 
(2) par value of shares of par value stock, the stated value of shares 
of no par stock, and the amount paid in or approved by the Board for 
shares of no par stock without stated value, issued and actually 
outstanding, being the shares not held by the company, its agents, or 
trustees, or subject to its control.
    (f) The amounts recorded shall be further divided so as to show the 
amount of each class of stock issued, separated as between par value and 
no par value stock, as follows:
    (1) Common stock. Stocks which have no preference over other issues 
of stock in distribution of dividends or of assets.
    (2) Preferred stock. Stocks having preference over other issues of 
stock in distribution of dividends or of assets.
    (3) Debenture stock. Stock issued under a contract to pay a 
specified return at specified intervals.
    (4) Receipts outstanding for installments paid. Receipts for 
payments on account of subscriptions to capital stock.
    (g) When the subscriber has paid his subscription in full and is 
entitled to receive certificates representing the shares for which he 
has subscribed, the par value of stocks having par value, the stated 
value of no par stock, or the agreed purchase price or the price 
authorized by the Board for no par stock without stated value, as 
appropriate, shall be included in the division for the class for which 
the certificates are issued.
    (h) Each of the above classes shall also be divided into subclasses 
according to differences in dividend or interest rights, voting rights, 
or conditions under which the securities may be retired.
    Note A: When a general levy or assessment is made against the 
holders of capital stock requiring the payment of any sum in addition to 
the consideration agreed upon at the time of sale, the amount collected 
shall be credited to account 794, ``Premiums and assessments on capital 
stock.''
    Note B: When no par stock without stated value is issued in exchange 
for par stock, or no par stock with stated value, amounts included in 
account 794, ``Premiums and assessments on capital stock,'' for the 
retired stock, shall be transferred to this account, and any amounts 
icluded in the discount account for the retired stock shall be charged 
to account 795, ``Other capital''; Provided, however, That any excess 
over the amount of

[[Page 127]]

accumulated net gains applicable to the subclass exchanged included in 
account 795 shall be charged to account 616, ``Other debits to retained 
earnings.''
    Note C: An appropriate record shall be maintained with respect to 
shares of capital stock showing the number of shares nominally issued, 
nominally outstanding, actually issued and actually outstanding.
    Note D: See definitions 2, actually issued; 3, actually outstanding; 
13, nominally issued; and 14, nominally outstanding.
792  Capital stock to be distributed.
    This account shall include the company's liability under agreements 
to exchange its capital stock for the outstanding securities of 
companies whose physical property has been acquired under such 
agreements, but whose securities have not yet been surrendered for 
exchange. This account shall also include stock dividends declared that 
remain undistributed at the end of an accounting period.

[42 FR 35017, July 7, 1977, as amended at 52 FR 4347, Feb. 11, 1987]
793  Discount on capital stock.
    This account shall include the excess of the par or stated value 
recorded in account 791, ``Capital stock,'' (at the time of original 
sale of par value stock and no par stock with a stated value) plus 
accrued dividends, if any, over the cash value of the consideration 
received.
794  Premiums and assessments on capital stock.
    (a) This account shall include the excess of the actual cash vlaue 
of the consideration received (at the time of original sale of par value 
stock and no par stock with a stated value) over the par or stated value 
of the stock issued, plus accrued dividends, if any, and subsequent 
assessments against stockholders representing payments required in 
excess of par or stated value.
    (b) Separate subdivisions shall be maintained for premiums and for 
assessments on each class and series of stock.
    (c) When capital stock is retired and canceled, this account shall 
be charged with the amount of assessments and premiums originally 
recorded for the shares of stock retired and canceled.
795  Other capital.
    (a) This account shall include all other capital not classified as 
retained earnings. It shall include such items as the amount of consent 
dividends on the accounting company's capital stock; capital arising 
from donations by stockholders of capital stock of the company or other 
contribution to capital; amounts representing reduction of the par or 
recorded value of the accounting company's capital stock, including 
reductions arising in merger of a railroad and pooling of interest (see 
instruction 2-15(d)); capital from reorganization of the company (see 
instruction 2-16); and amounts of forfeited subscriptions to the 
accounting company's capital stock. This account shall also include 
gains from the acquisition, retirement, or resale of reacquired shares 
of the accounting company's capital stock; and forgiveness by 
stockholders as a contribution to capital of long-term debt owed to 
them.
    (b) This account shall be charged with amounts included herein when 
capitalized by stock dividends or otherwise with the approval of the 
Board, and losses from retirement or resale of reacquired shares up to 
an amount not in excess of credits included herein applicable to the 
reacquired shares; and may be charged with the amortization of discount 
on capital stock to the extent of credits herein for such stock.
    (c) This account shall be subdivided to show each source of other 
capital.
    (d) This account shall be subdivided to show the cumulative amounts 
representing the cost of nondepreciable operating property received from 
government authorities, in accordance with the provisions of instruction 
1-15.
    (e) This account shall also be subdivided to show the cumulative 
amounts representing the cost of depreciable and nondepreciable 
operating property received by Amtrak or Conrail from the Federal 
Government. (See instruction 1-15.)

(49 U.S.C. 304, 320)

[42 FR 35017, July 7, 1977, as amended at 43 FR 30558, July 17, 1978]
797  Retained earnings; appropriated.
    This account shall include the accumulated amount of retained 
earnings

[[Page 128]]

which has been appropriated and set aside according to provisions of 
mortgages, deeds of trust, reorganization plans, or other agreements 
requiring payments into capital funds, sinking funds, or other funds; 
and also appropriations for general contingencies, possible future 
losses (not in the category of liabilities actually incurred), and other 
corporate purposes. This account shall be subdivided by classes of 
appropriations showing the purpose for which each appropriation is made.
798  Retained earnings; unappropriated.
    (a) This account shall include the net balance (debit or credit) of 
the amounts included in accounts 601 to 623, inclusive. It shall not 
include transfers either to or from account 795, ``Other capital,'' 
unless authorized upon application to the Board.
    (b) Any balance representing retained earnings not segregated at the 
date of the balance sheet shall be included in a subdivision of this 
account.
    (c) The balance of accounts 601 to 623, inclusive, shall be closed 
into this account at the end of each calendar year.
798.1  Net unrealized loss on noncurrent marketable securities.
    This account shall include the accumulated changes in account 724 to 
the extent that these changes represent a net unrealized loss (aggregate 
cost exceeds market value).
798.5  Treasury stock.
    (a) This account shall include in subdivisions for each class the 
reacquisition cost of capital stock which has been actually issued or 
assumed by the carrier, then reacquired, and is neither retired nor 
canceled, nor properly includable in sinking or other funds.
    (b) This account shall be maintained to reflect separately 
securities pledged and unpledged.
    (c) This account shall be shown on the balance sheet as a deduction 
in arriving at stockholders' equity.
    Note: The accounting for the reacquisition and resale of capital 
stock shall be in accordance with instruction 5-4, paragraphs (e) 
through (g).

                 Form of General Balance Sheet Statement

    The classified form of general balance sheet statement is designed 
to show the financial condition of the accounting company at any 
specified date.

                                 Assets
1Current assets:0
701.                               Cash.
702.                               Temporary cash investments.
703.                               Special deposits.
704.                               Loans and notes receivable.
705.                               Accounts receivable; Interline and
                                    other balances.
706.                               Accounts receivable; Customers.
707.                               Accounts receivable; Other.
708.                               Interest and dividends receivable.
708.5.                             Receivables from affiliated
                                    companies.
709.                               Accrued accounts receivable.
709.5.                             Allowance for uncollectible accounts.
                                     Net receivables.
710.                               Working funds.
711.                               Prepayments.
712.                               Material and supplies.
713.                               Other current assets.
714.                               Deferred income tax debits.
                                     Total current assets.
 
1Special funds:0
715.                               Sinking funds.
716.                               Capital funds.
717.                               Other funds.
                                     Total special funds.
 
1Investments:0
721.                               Investments and advances; affiliated
                                    companies.
                                     Undistributed earnings from certain
                                    investments in account 751.
721.5.                             Adjustments; investments and
                                    advances--affiliated companies.
                                     Net--investments and advances--
                                    affiliated companies.
722.                               Other investments and advances.
723.                               Adjustments; Other investments and
                                    advances.
724.                               Allowance for net unrealized loss on
                                    noncurrent marketable equity
                                    securities--Cr.
                                     Net--other investments and
                                    advances.
                                     Total investments.
 
1Tangible property:0
731.                               Road and equipment property.
735.                               Accumulated depreciation; Road and
                                    equipment property.
736.                               Accumulated amortization; Road and
                                    equipment property--Defense
                                    projects.
                                     Net road and equipment property.
732.                               Improvements on leased property.
733.                               Accumulated depreciation;
                                    Improvements on leased property.
734.                               Accumulated amortization;
                                    Improvements on leased property--
                                    Defense projects.
                                     Net improvements on leased
                                    property.
                                     Total carrier property.
737.                               Property used in other than carrier
                                    operations.
738.                               Accumulated depreciation; Property
                                    used in other than carrier
                                    operations.
                                     Net--property used in other than
                                    carrier operations.
                                     Total tangible property.
 
1Intangible property:0
739.                               Organization expenses.
 
1Other assets and deferred
 debits:0
741.                               Other assets.
743.                               Other deferred debits.

[[Page 129]]

 
744.                               Accumulated deferred income tax
                                    debits.
                                     Total other assets and deferred
                                    debits.
                                     Total assets.
 
  1liabilities and shareholders'
              equity
 
Current liabilities:0
751.                               Loans and notes payable.
752.                               Accounts payable; Interline and other
                                    balances.
753.                               Audited accounts and wages payable.
754.                               Accounts payable; Other.
755.                               Interest payable.
756.                               Dividends payable.
757.                               Payables to affiliated companies.
759.                               Accrued accounts payable.
760.                               Federal income taxes accrued.
761.                               State and other income taxes accrued.
761.5.                             Other taxes accrued.
762.                               Deferred income tax credits.
763.                               Other current liabilities.
764.                               Equipment obligations and other long-
                                    term debt due within one year.
                                     Total current liabilities.
 
1Long-term debt due after one
 year:\1\0
765.                               Funded debt unmatured.
766.                               Equipment obligations.
766.5.                             Capitalized lease obligations.
767.                               Receivers' and trustees' securities.
768.                               Debt in default.
769.                               Accounts payable; Affiliated
                                    companies.
770.1                              Unamortized debt discount.
770.2                              Unamortized premium on debt.
                                     Total long-term debt due after one
                                    year.
 
1Other long-term liabilities:0
771.                               Accrued liability; Pension and
                                    welfare.
772.                               Accrued liability; Leased property.
774.                               Accrued liability; Casualty and other
                                    claims.
775.                               Other accrued liabilities.
781.                               Interest in default.
782.                               Other liabilities.
                                     Total other long-term liabilities.
 
1Deferred credits:0
783.                               Deferred revenues--transfers from
                                    government authorities.
784.                               Other deferred credits.
786.                               Accumulated deferred income tax
                                    credits.
                                     Total deferred credits.
 
1Shareholders' equity:
 
  Capital stock:0
791.                               Capital stock.
792.                               Liability for conversion of capital
                                    stock.
793.                               Discount on capital stock.
                                     Total capital stock.
 
1  Additional capital:0
794.                               Premiums and assessments on capital
                                    stock.
795.                               Other capital.
                                     Total additional capital.
 
1Retained earnings:0
797.                               Retained earnings; Appropriated.
798.                               Retained earnings; Unappropriated.
798.1                              Net unrealized loss on noncurrent
                                    marketable equity securities.
                                     Total retained earnings.
798.5                              Treasury stock.
                                     Total shareholders' equity.
                                     Total liabilities and shareholders'
                                    equity.
------------------------------------------------------------------------
 
 
\1\ To be divided as to ``Total issued'' and ``Held by or for company.''

(49 U.S.C. 12, 20, 304, 913 and 1012)

[42 FR 35017, July 7, 1977, as amended at 42 FR 56611, Oct. 27, 1977; 43 
FR 30558, July 17, 1978]



CONVERSION TABLES--Table of Contents




Operating Expense Accounts.
Transportation Operating Revenue Accounts.
Income Accounts.
Retained Income Accounts.
General Balance Sheet Accounts.

                                  Operating Expense Accounts--Conversion Table
                                         [See footnotes at end of table]
----------------------------------------------------------------------------------------------------------------
 System of accounts effective prior to Jan 1, 1978            System of accounts effective Jan. 1, 1978
----------------------------------------------------------------------------------------------------------------
                                                                           Account No.\1\
               Account title                  No.  -------------------------------------------------------------
 
----------------------------------------------------------------------------------------------------------------
  6Maintenance of Roadway and Structures
 
----------------------------------------------------------------------------------------------------------------
0Superintendence..........................     201    11-13-02    21-13-02  ............    41-13-02    61-13-02
                                                      11-13-03    21-13-03  ............    41-13-03    61-13-03
                                                      11-13-04    21-13-04  ............    41-13-04    61-13-04
                                                      11-13-05    21-13-05  ............    41-13-05    61-13-05
                                                      11-13-06    21-13-06  ............    41-13-06    61-13-06
Roadway maintenance.......................     202    11-11-10    21-11-10   39/40-11-10    41-11-10    61-11-10
                                                      11-12-10    21-12-10   39/40-12-10    41-12-10    61-12-10
                                                      11-11-11    21-11-48   39/40-11-48    41-11-48    61-11-48
                                                      11-12-11    21-12-11   39/40-12-11    41-12-11    61-12-48
Tunnels and subways.......................     206    11-11-11    21-11-11   39/40-11-11    41-11-11    61-11-11
                                                      11-12-11    21-12-11   39/40-12-11    41-12-11    61-12-11
                                                      11-11-48    21-11-48   39/40-11-48    41-12-48    61-12-48
                                                      11-12-48    21-12-48   39/40-12-48    41-12-48    61-12-48
Bridges, trestles and culverts............     208    11-11-12    21-11-12   39/40-11-12    41-11-12    61-11-12
                                                       1-12-12    21-12-12   39/40-12-12    41-12-12    61-12-12
                                                      11-11-48    21-11-48   39/40-11-48    41-11-48    61-11-48
                                                      11-12-48    21-12-48   39/40-12-48    41-12-48    61-12-48
Elevated structures.......................     210    11-11-12    21-11-12   39/40-11-12    41-11-12    61-11-12
                                                      11-12-12    21-12-12   39/40-12-12    41-12-12    61-12-12

[[Page 130]]

 
                                                      11-11-48    21-11-48   39/40-11-48    41-11-48    61-11-48
                                                      11-12-48    21-12-48   39/40-12-48    41-12-48    61-12-48
Ties......................................     212  ..........    21-11-13  ............  ..........  ..........
                                                    ..........    21-12-13  ............  ..........  ..........
                                                    ..........    21-11-48  ............  ..........  ..........
                                                    ..........    21-12-48  ............  ..........  ..........
Rails.....................................     214  ..........    21-11-14  ............  ..........  ..........
                                                    ..........    21-12-14  ............  ..........  ..........
                                                    ..........    21-11-48  ............  ..........  ..........
                                                    ..........    21-12-48  ............  ..........  ..........
Other track material......................     216  ..........    21-11-15  ............  ..........  ..........
                                                    ..........    21-12-15  ............  ..........  ..........
                                                    ..........    21-11-48  ............  ..........  ..........
                                                    ..........    21-12-48  ............  ..........  ..........
Ballast...................................     218  ..........    21-11-16  ............  ..........  ..........
                                                    ..........    21-12-16  ............  ..........  ..........
                                                    ..........    21-11-48  ............  ..........  ..........
                                                    ..........    21-12-48  ............  ..........  ..........
Track laying and surfacing................     220    11-11-17    21-11-17   39/40-11-17    41-11-17    61-11-17
                                                      11-12-17    21-12-17   39/40-12-17    41-12-17    61-12-17
                                                      11-11-48    21-11-48   39/40-11-48    41-11-48    61-11-48
                                                      11-12-48    21-12-48   39/40-12-48    41-12-48    61-12-48
Fences, snowsheds and signs...............     221    11-13-28    21-13-28   39/40-13-28    41-13-28    61-13-28
                                                      11-13-48    21-13-48   39/40-13-48    41-13-48    61-13-48
Station and office buildings..............     227    11-13-23    21-13-23   39/40-13-23    41-13-23    61-13-23
                                                      11-13-33    21-13-33   39/40-13-33    41-13-33    61-13-33
                                                      11-13-35    21-13-35   39/40-13-35    41-13-35    61-13-35
                                                      11-13-48    21-13-48   39/40-13-48    41-13-48    61-13-48
Roadway buildings.........................     229    11-13-28    21-13-28   39/40-13-28    41-13-28    61-13-28
                                                      11-13-48    21-13-48   39/40-13-48    41-13-48    61-13-48
Water stations............................     231    11-13-27    21-13-27   39/40-13-27    41-13-27    61-13-27
                                                      11-13-48    21-13-48   39/40-13-48    41-13-48    61-13-48
Fuel stations.............................     233    11-13-27    21-13-27   39/40-13-27    41-13-27    61-13-27
                                                      11-13-48    21-13-48   39/40-13-48    41-13-48    61-13-48
Shops and enginehouses....................     235    11-13-24    21-13-24   39/40-13-24    41-13-24    61-13-24
                                                      11-13-25    21-13-25   39/40-13-25    41-13-25    61-13-25
                                                      11-13-26    21-13-26   39/40-13-26    41-13-26    61-13-26
                                                      11-13-48    21-13-48   39/40-13-48    41-13-48    61-13-48
Grain elevators...........................     237    11-13-35    21-13-35   39/40-13-35    41-13-35    61-13-35
                                                      11-13-48    21-13-48   39/40-13-48    41-13-48    61-13-48
Storage warehouses........................     239    11-13-28    21-13-28   39/40-13-28    41-13-28    61-13-28
                                                      11-13-48    21-13-48   39/40-13-48    41-13-48    61-13-48
Wharves and docks.........................     241    11-13-32    21-13-32   39/40-13-32    41-13-32    61-13-32
                                                      11-13-48    21-13-48   39/40-13-48    41-13-48    61-13-48
Coal and ore wharves......................     243    11-13-29    21-13-29   39/40-13-29    41-13-29    61-13-29
                                                      11-13-30    21-13-30   39/40-13-30    41-13-30    61-13-30
                                                      11-13-48    21-13-48   39/40-13-48    41-13-48    61-13-48
TOFC/COFC terminals.......................     244    11-13-31    21-13-31   39/40-13-31    41-13-31    61-13-31
                                                      11-13-48    21-13-48   39/40-13-48    41-13-48    61-13-48
Communication systems.....................     247    11-13-20    21-13-20   39/40-13-20    41-13-20    61-13-20
                                                      11-13-48    21-13-48   39/40-13-48    41-13-48    61-13-48
Signals and interlockers..................     249    11-11-19    21-11-19   39/40-11-19    41-11-19    61-11-19
                                                      11-12-48    21-12-48   39/40-12-48    41-12-18    61-12-18
                                                      11-11-48    21-11-48   39/40-11-48    41-11-48    61-11-48
                                                      11-12-48    21-12-48   39/40-12-48    41-12-48    61-12-48
Power plants..............................     253    11-13-21    21-13-21   39/40-13-21    41-13-21    61-13-21
                                                      11-13-24    21-13-24   39/40-13-24    41-13-24    61-13-24
                                                      11-13-28    21-13-25   39/40-13-25    41-13-25    61-13-25
                                                      11-13-26    21-13-26   39/40-13-26    41-13-26    61-13-26
                                                      11-13-48    21-13-48   39/40-13-48    41-13-48    61-13-48
Power transmission systems................     257    11-13-21    21-13-21   39/40-13-21    41-13-21    61-13-21
                                                      11-13-24    21-13-24   39/40-13-24    41-13-24    61-13-24
                                                      11-13-25    21-13-25   39/40-13-25    41-13-25    61-13-25
                                                      11-13-26    21-13-26   39/40-13-26    41-13-26    61-13-26
                                                      11-13-48    21-13-48   39/40-13-48    41-13-48    61-13-48
Miscellaneous structures..................     265    11-13-28    21-13-28   39/40-13-28    41-13-28    61-13-28
                                                      11-13-48    21-13-48   39/40-13-48    41-13-48    61-13-48

[[Page 131]]

 
Roadway property; depreciation............     266  ..........  ..........  ............  ..........    62-11-00
                                                    ..........  ..........  ............  ..........    62-12-00
                                                    ..........  ..........  ............  ..........    62-13-00
Retirements; road.........................     267  ..........  ..........  ............  ..........  \2\61-11-9
                                                                                                               9
                                                    ..........  ..........  ............  ..........    61-12-99
                                                    ..........  ..........  ............  ..........    61-13-99
Roadway machines..........................     269    11-13-36    21-13-36   39/40-13-36    41-13-36    61-13-36
                                                      11-13-48    21-13-48   39/40-13-48    41-13-48    61-13-48
Dismantling retired road property.........     270    11-11-39    21-11-39  ............    41-11-39    61-11-39
                                                      11-12-39    21-12-39  ............    41-12-39    61-12-39
                                                      11-13-39    21-13-39  ............    41-13-39    61-13-39
Small tools and supplies..................     271    11-13-37    21-13-37   39/40-13-37    41-13-37    61-13-37
Removing snow, ice and sand...............     272    11-13-38    21-13-38   39/40-13-38    41-13-38    61-13-38
Public improvements; maintenance..........     273    11-11-22    21-11-22   39/40-11-22    41-11-22    61-11-22
                                                      11-12-22    21-12-22   39/40-12-22    41-12-22    61-12-22
Injuries to persons.......................     274    11-11-99  ..........  ............  ..........    61-11-99
                                                      11-12-99  ..........  ............  ..........    61-12-99
                                                      11-13-99  ..........  ............  ..........    61-13-99
                                                      11-61-92    21-61-92      41-61-92  ..........    61-61-92
                                                    ..........  ..........  ............  ..........    52-11-00
                                                    ..........  ..........  ............  ..........    52-12-00
                                                    ..........  ..........  ............  ..........    52-13-00
Insurance.................................     275  ..........  ..........  ............  ..........    53-11-00
                                                    ..........  ..........  ............  ..........    53-12-00
                                                    ..........  ..........  ............  ..........    53-13-00
Stationery and printing...................     276  ..........    21-11-xx  ............  \2\41-11-x
                                                                                                   x  ..........
                                                    ..........    21-12-xx  ............    41-12-xx  ..........
                                                    ..........    21-13-xx  ............    41-13-xx  ..........
Employees health and welfare benefits.....     277    12-11-00  ..........  ............  ..........  ..........
                                                      12-12-00  ..........  ............  ..........  ..........
                                                      12-13-00  ..........  ............  ..........  ..........
Maintaining joint tracks, yards and other
 facilities--Dr...........................     278  ..........  ..........      37-11-00  ..........  ..........
                                                    ..........  ..........      37-12-00  ..........  ..........
                                                    ..........  ..........      37-13-00  ..........  ..........
Maintaining joint tracks, yards and other
 facilities--Cr...........................     279  ..........  ..........      38-11-00  ..........  ..........
                                                    ..........  ..........      38-12-00  ..........  ..........
                                                    ..........    38-13-00  ............  ..........  ..........
Right-of-way expenses.....................     281    11-11-99    21-11-99  ............    41-11-99    61-11-99
                                                      11-12-99    21-12-99  ............    41-12-99    61-12-99
                                                      11-13-99    21-13-99  ............    41-13-99    61-13-99
Other expenses............................     282    11-11-99    21-11-99  ............    41-11-99    61-11-99
                                                      11-12-99    21-12-99  ............    41-12-99    61-12-99
                                                      11-13-99    21-13-99  ............    41-13-99    61-13-99
 
----------------------------------------------------------------------------------------------------------------
         6Maintenance of Equipment
 
----------------------------------------------------------------------------------------------------------------
0Superintendence..........................     301    11-21-01    21-12-01  ............    41-21-01    61-21-01
                                                      11-22-01    21-22-01  ............    41-22-01    61-22-01
                                                      11-23-01    21-23-01  ............    41-23-01    61-23-01
Shop machinery............................     302    11-21-40    21-21-40   39/40-21-40    41-21-40    61-21-40
                                                      11-22-40    21-22-40   39/40-22-40    41-22-40    61-22-40
                                                      11-23-40    21-22-40   39/40-23-40    41-23-40    61-23-40
Power plant machinery.....................     304    11-13-21    21-13-21   39/40-13-21    41-13-21    61-13-21
                                                      11-13-28    21-13-28   39/40-13-28    41-13-28    61-13-28
Shop and power plant machinery;
 depreciation.............................     305  ..........  ..........  ............  ..........    62-13-00
                                                    ..........  ..........  ............  ..........    62-21-00
                                                    ..........  ..........  ............  ..........    62-22-00
                                                    ..........  ..........  ............  ..........    62-23-00
Dismantling retired shop and power plant
 machinery................................     306    11-13-39    21-13-39  ............    41-13-39    61-13-39
                                                      11-21-39    21-21-39  ............    41-21-39    61-21-39
                                                      11-22-39    21-22-39  ............    41-22-39    61-22-39
                                                      11-23-39    21-23-39  ............    41-23-39    61-23-39
Locomotive repairs........................     311    11-21-41    21-21-41   39/40-21-41    41-21-41    61-21-41
                                                      11-21-48    21-21-48   39/40-21-48    41-21-48    61-21-48

[[Page 132]]

 
                                                      11-31-62    21-31-62  ............    41-31-62    61-31-62
Freight-train cars; repairs...............     314    11-22-42    21-22-42   39/40-22-42    41-22-42    61-22-42
                                                      11-22-48    21-22-48   39/40-22-48    41-22-48    61-22-48
                                                      11-31-62    21-31-62  ............    41-31-62    61-31-62
Passenger-train cars; repairs.............     317    11-25-45    21-25-45   39/40-25-45    41-25-45    61-25-45
                                                      11-25-48    21-25-48   39/40-25-48    41-25-48    61-25-48
Highway revenue equipment; repairs........     318    11-23-43    21-23-43   39/40-23-43    41-23-43    61-23-43
                                                      11-23-48    21-43-48   39/40-23-48    41-23-48    61-23-48
Floating equipment; repairs...............     323    11-23-44    21-23-44   39/40-23-44    41-23-44    61-23-44
                                                      11-23-48    21-23-48   30/40-23-48    41-23-48    61-23-48
Work equipment; repairs...................     326    11-23-47    21-23-47   39/40-23-47    41-23-47    61-23-47
                                                      11-23-48    21-23-48   39/40-23-48    41-23-48    61-23-48
Miscellaneous equipment; repairs..........     328    11-23-47    21-23-47   39/40-23-47    41-23-47    61-23-47
                                                      11-23-48    21-23-48   39/40-23-48    41-23-48    61-23-48
Dismantling retired equipment.............     329    11-21-39    21-21-39  ............    41-21-39    61-21-39
                                                      11-22-39    21-22-39  ............    41-22-39    61-22-39
                                                      11-23-39    21-23-39  ............    41-23-39    61-23-39
Retirements; equipment....................     330  ..........  ..........  ............  ..........    61-29-99
                                                    ..........  ..........  ............  ..........    61-22-99
                                                    ..........  ..........  ............  ..........    61-23-99
Equipment; depreciation...................     331  ..........  ..........  ............  ..........    62-21-00
                                                    ..........  ..........  ............  ..........    62-22-00
                                                    ..........  ..........  ............  ..........    62-23-00
Injuries to persons.......................     332    11-21-99  ..........  ............  ..........    61-21-99
                                                      11-22-99  ..........  ............  ..........    61-22-99
                                                      11-23-99  ..........  ............  ..........    61-23-99
                                                      11-61-99    21-61-92      41-61-92  ..........    61-61-92
                                                    ..........  ..........  ............  ..........    52-21-00
                                                    ..........  ..........  ............  ..........    52-22-00
                                                    ..........  ..........  ............  ..........    52-23-00
Insurance.................................     333  ..........  ..........  ............  ..........    53-21-00
                                                    ..........  ..........  ............  ..........    53-22-00
                                                    ..........  ..........  ............  ..........    53-23-00
Stationery and printing...................     334  ..........  \2\21-21-x
                                                                         x  ............  \2\41-21-x
                                                                                                   x  ..........
                                                    ..........    21-22-xx  ............    41-22-xx  ..........
                                                    ..........    21-23-xx  ............    41-23-xx  ..........
Employees health and welfare benefits.....     335    12-21-00  ..........  ............  ..........  ..........
                                                      12-22-00  ..........  ............  ..........  ..........
                                                      12-23-00  ..........  ............  ..........  ..........
Joint maintenance of equipment expenses--
 Dr.......................................     336  ..........  ..........      37-21-00  ..........  ..........
                                                    ..........  ..........      37-22-00  ..........  ..........
                                                    ..........  ..........      37-23-00  ..........  ..........
Joint maintenance of equipment expenses--
 Cr.......................................     337  ..........  ..........      38-21-00  ..........  ..........
                                                    ..........  ..........      38-22-00  ..........  ..........
                                                    ..........  ..........      38-23-00  ..........  ..........
Other expenses............................     339    11-21-99    21-21-99  ............    41-21-99    61-21-99
                                                      11-22-99    21-22-99  ............    41-22-99    61-22-99
                                                      11-23-99    21-23-99  ............    41-23-99    61-23-99
Various...................................  ......    11-23-46    21-23-46   39/40-23-46    41-23-46    61-23-46
 
----------------------------------------------------------------------------------------------------------------
         6Traffic Expense Account
 
----------------------------------------------------------------------------------------------------------------
0Superintendence..........................     351    11-61-01    21-61-01  ............    41-61-01    61-61-01
Outside agencies..........................     352    11-61-88    21-61-88  ............    41-61-88    61-61-88
                                                      11-61-89    21-61-89  ............    41-61-89    61-61-89
Advertising...............................     353    11-61-93    21-61-93  ............    41-61-93    61-61-93
Traffic associations......................     354    11-61-93    21-61-93  ............    41-61-93    61-61-93
Fast freight lines........................     355    11-61-99    21-61-99  ............    41-61-99    61-61-99
Industrial and immigration bureaus........     356    11-61-90    21-61-90  ............    41-61-90    61-61-90
Insurance.................................     357  ..........  ..........  ............  ..........    53-61-00
Stationery and printing...................     358  ..........  \2\21-61-x
                                                                         x  ............  \2\ 41-61-
                                                                                                  xx  ..........
Employees health and welfare benefits.....     359    12-61-00  ..........  ............  ..........  ..........
Other expenses............................     360    11-61-99    21-61-99  ............    41-61-99    61-61-99
 
----------------------------------------------------------------------------------------------------------------
     6Transportation Expense Accounts
 
----------------------------------------------------------------------------------------------------------------
0Superintendence..........................     371    11-31-01    21-31-01  ............    41-31-01    61-31-01

[[Page 133]]

 
                                                      11-32-01    21-32-01  ............    41-32-01    61-32-01
                                                      11-34-01    21-34-01  ............    41-34-01    61-34-01
                                                      11-35-01    21-35-01  ............    41-35-01    61-35-01
Dispatching trains........................     372    11-31-58    21-31-58  ............    41-31-58    61-31-58
Station employees.........................     373    11-33-71  ..........  ............  ..........  ..........
                                                      11-35-76  ..........  ............  ..........  ..........
                                                      11-35-77  ..........  ............  ..........  ..........
Weighing, inspection and demurrage bureaus     374  ..........  ..........  ............    41-31-99  ..........
Coal and ore wharves......................     375    11-34-74    21-34-74  ............    41-34-74    61-34-74
Station supplies and expenses.............     376  ..........    21-33-71  ............    41-33-71  ..........
                                                    ..........    21-35-76  ............    41-35-76    61-35-76
                                                    ..........    21-35-77  ............    41-35-77    61-35-77
Yardmasters and yard clerks...............     377    11-32-65  ..........  ............  ..........  ..........
                                                      11-32-66  ..........  ............  ..........  ..........
Yard conductors and brakemen..............     378    11-32-64  ..........  ............  ..........  ..........
Yard switch and signal tenders............     379    11-32-59  ..........  ............  ..........  ..........
Yard enginemen............................     380    11-32-64  ..........  ............  ..........  ..........
Yard switching fuel.......................     382    11-32-67    21-32-67  ............    41-32-67    61-32-67
Yard switching power produced.............     383    11-32-68    21-32-68  ............    41-32-68    61-32-68
Yard switching power purchased............     384  ..........  ..........  ............    41-32-68  ..........
Servicing yard locomotives................     388    11-32-69    21-32-69  ............    41-32-69    61-32-69
Yard supplies and expenses................     389  ..........    21-32-59  ............    41-32-59    61-32-59
                                                    ..........    21-32-64  ............    41-32-64    61-32-64
                                                    ..........    21-32-65  ............    41-32-65    61-32-65
                                                    ..........    21-32-66  ............    41-32-66    61-32-66
Operating joint yards and terminals--Dr...     390  ..........  ..........      37-32-00  ..........  ..........
Operating joint yards and terminals--Cr...     391  ..........  ..........      38-32-00  ..........  ..........
Train enginemen...........................     392    11-31-56  ..........  ............  ..........  ..........
Train fuel................................     394    11-31-67    21-31-67  ............    41-31-67    61-31-67
Train power produced......................     395    11-31-68    21-31-68  ............    41-31-68    61-31-68
Train power purchased.....................     396  ..........  ..........  ............    41-31-68  ..........
Servicing train locomotives...............     400    11-31-69    21-31-69  ............    41-31-69    61-31-69
Trainmen..................................     401    11-31-57  ..........  ............  ..........  ..........
Train supplies and expenses...............     402  ..........    21-31-56  ............    41-31-56    61-31-56
                                                                  21-31-57  ............    41-31-57    61-31-57
                                                      11-31-62    21-31-62  ............    41-31-62    61-31-62
                                                      11-33-70    21-33-70  ............    41-33-70  ..........
                                                      11-33-71    21-33-71  ............    41-33-71  ..........
                                                      11-33-72    21-33-72  ............    41-33-72  ..........
                                                      11-34-75    21-34-75  ............    41-34-75    61-34-75
                                                      11-31-99    21-31-99  ............    41-31-99    61-31-99
Operating sleeping cars...................     403    11-41-01    21-41-01  ............    41-41-01    61-41-01
                                                      11-41-57    21-41-57  ............    41-41-57    61-41-57
                                                      11-45-76    21-45-76  ............    41-45-76    61-45-76
                                                      11-41-99    21-41-99  ............    41-41-99    61-41-99
Signal and interlocker operation..........     404    11-31-59    21-31-59  ............    41-31-59    61-31-59
Crossing protection.......................     405    11-31-61    21-31-61  ............    41-31-61    61-31-61
Drawbridge operations.....................     406    11-31-60    21-31-60  ............    41-31-60    61-31-60
Communication system operation............     407    11-35-77    21-35-77  ............    41-35-77    61-35-77
Operating floating equipment..............     408    11-34-01    21-34-01  ............    41-34-01    61-34-01
                                                      11-34-73    21-34-73  ............    41-34-73    61-34-73
                                                      11-34-74    21-34-74  ............    41-34-74    61-34-74
Employees health and welfare benefits.....     409    12-31-00  ..........  ............  ..........  ..........
                                                      12-32-00  ..........  ............  ..........  ..........
                                                      12-33-00  ..........  ............  ..........  ..........
                                                      12-34-00  ..........  ............  ..........  ..........
                                                      12-35-00  ..........  ............  ..........  ..........
Stationery and printing...................     410  ..........  \2\21-31-x
                                                                         x  ............  \2\41-31-x
                                                                                                   x  ..........
                                                      21-32-xx  ..........      41-32-xx  ..........  ..........
                                                      21-34-xx  ..........      41-34-xx  ..........  ..........
                                                      21-35-xx  ..........      41-35-xx  ..........  ..........
Other expenses............................     411    11-31-99    21-31-99  ............    41-31-99    61-31-99
                                                      11-32-99    21-32-99  ............    41-32-99    61-32-99
                                                      11-34-99    21-34-99  ............    41-34-99    61-34-99
                                                      11-35-99    21-35-99  ............    41-35-99    61-35-99
Operating joint tracks and facilities--Dr.     412  ..........  ..........      37-31-00  ..........  ..........
                                                    ..........    37-32-00  ............  ..........  ..........

[[Page 134]]

 
                                                    ..........    37-34-00  ............  ..........  ..........
                                                    ..........    37-35-00  ............  ..........  ..........
Operating joint tracks and facilities--Cr.     413  ..........  ..........      38-31-00  ..........  ..........
                                                    ..........  ..........      38-32-00  ..........  ..........
                                                    ..........  ..........      38-34-00  ..........  ..........
                                                    ..........  ..........      38-35-00  ..........  ..........
Insurance.................................     414  ..........  ..........  ............  ..........    53-31-00
                                                    ..........  ..........  ............  ..........    53-32-00
                                                    ..........  ..........  ............  ..........    53-34-00
                                                    ..........  ..........  ............  ..........    53-35-00
Clearing wrecks...........................     415    11-31-63    21-31-63  ............    41-31-63    61-31-63
                                                      11-32-63    21-32-63  ............    41-32-63    61-32-63
Damage to property........................     416  ..........  ..........  ............  ..........    52-31-00
                                                    ..........  ..........  ............  ..........    52-32-00
                                                    ..........  ..........  ............  ..........    52-34-00
                                                    ..........  ..........  ............  ..........    52-35-00
Damage to livestock on right-of-way.......     417  ..........  ..........  ............  ..........    52-31-00
Loss and damage; Freight..................     418  ..........  ..........  ............  ..........    51-31-00
                                                    ..........  ..........  ............  ..........    51-32-00
                                                    ..........  ..........  ............  ..........    51-33-00
                                                    ..........  ..........  ............  ..........    51-34-00
                                                      11-35-78    21-35-78  ............    41-35-78    61-35-78
Loss and damage; Baggage..................     419  ..........  ..........  ............  ..........    51-31-00
                                                    ..........  ..........  ............  ..........    51-32-00
                                                    ..........  ..........  ............  ..........    51-33-00
                                                    ..........  ..........  ............  ..........    51-34-00
                                                      11-35-78    21-35-78  ............    41-35-78    61-35-78
Injuries to persons.......................     420    11-31-99  ..........  ............  ..........    61-61-92
                                                      11-32-99  ..........  ............  ..........    61-31-99
                                                      11-34-99  ..........  ............  ..........    61-32-99
                                                      11-35-99  ..........  ............  ..........    61-34-99
                                                      11-61-92    21-61-92      41-61-92  ..........    61-35-99
                                                    ..........  ..........  ............  ..........    52-13-00
                                                    ..........  ..........  ............  ..........    52-32-00
                                                    ..........  ..........  ............  ..........    52-34-00
                                                    ..........  ..........  ............  ..........    52-35-00
                                                      11-35-78    21-35-78  ............    41-35-78    61-35-78
TOFC/COFC terminals.......................     421    11-34-73    21-34-73  ............    41-34-73    61-34-73
                                                      11-34-74    21-34-74  ............    41-34-74    61-34-74
                                                      11-34-75    21-34-75  ............    41-34-75    61-34-75
Other highway transportation..............     422    11-34-73    21-34-73  ............    41-34-73    61-34-73
                                                      11-34-74    21-34-74  ............    41-34-74    61-34-74
                                                      11-34-75    21-34-75  ............    41-34-75    61-34-75
 
----------------------------------------------------------------------------------------------------------------
     6Miscellaneous Operations Expense
 
----------------------------------------------------------------------------------------------------------------
0Dining and buffet service................     441    11-41-01    21-41-01  ............    41-41-01    61-41-01
                                                      11-41-57    21-41-57  ............    41-41-57    61-41-57
                                                      11-41-99    21-41-99  ............    41-41-99    61-41-99
Hotels and restaurants....................     442    11-34-99    21-34-99  ............    41-34-99    61-34-99
Grain elevators...........................     443    11-34-01    21-34-01  ............    41-34-01    61-34-01
                                                      11-34-74    21-34-74  ............    41-34-74    61-34-74
                                                      11-34-75    21-34-75  ............    41-34-75    61-34-75
Producing power sold......................     445    11-31-68    21-31-68  ............    41-31-68    61-31-68
                                                      11-32-68    21-32-68  ............    41-32-68    61-32-68
Other miscellaneous operations............     446    11-34-99    21-34-99  ............    41-34-99    61-34-99
Operating joint miscellaneous facilities--
 Dr.......................................     447  ..........  ..........      37-34-00  ..........  ..........
                                                    ..........  ..........      37-35-00  ..........  ..........
Operating joint miscellaneous facilities--
 Cr.......................................     448  ..........  ..........      38-34-00  ..........  ..........
                                                    ..........  ..........      38-35-00  ..........  ..........
Employees Health and Welfare Benefits.....     449    12-34-00  ..........  ............  ..........  ..........
 
----------------------------------------------------------------------------------------------------------------
        6General Operating Expenses
 
----------------------------------------------------------------------------------------------------------------
0Salaries and expenses of general officers     451    11-61-01    21-61-01  ............    41-61-01    61-61-01
                                                      11-61-86    21-61-86  ............    41-61-86    61-61-86

[[Page 135]]

 
                                                      11-61-87    21-61-87  ............    41-61-87    61-61-87
                                                      11-61-90    21-61-90  ............    41-61-90    61-61-90
                                                      11-61-91    21-61-91  ............    41-61-91    61-61-91
                                                      11-61-94    21-61-94  ............    41-61-94    61-61-94
                                                      11-61-99    21-61-99  ............    41-61-99    61-61-99
Salaries and expenses of clerks and
 attendants...............................     452    11-61-01    21-61-01  ............    41-61-01    61-61-01
                                                      11-61-99    21-61-99  ............    41-61-99    61-61-99
                                                      11-61-86    21-61-86  ............    41-61-86    61-61-86
                                                      11-61-87    21-61-87  ............    41-61-87    61-61-87
                                                      11-61-90    21-61-90  ............    41-61-90    61-61-90
                                                      11-61-91    21-61-91  ............    41-61-91    61-61-91
                                                      11-61-92    21-61-92  ............    41-61-92    61-61-92
                                                      11-61-94    21-61-94  ............    41-61-94    61-61-94
                                                    ..........    21-61-99  ............    41-61-99    61-61-99
General office supplies and expenses......     453  ..........    21-61-01  ............    41-61-01    61-61-01
Law expenses..............................     454    11-61-92    21-61-92  ............    41-61-92    61-61-92
Insurance.................................     455  ..........  ..........  ............  ..........    53-61-00
Employees health and welfare benefits.....     456    12-61-00  ..........  ............  ..........  ..........
Pensions..................................     457    12-11-00  ..........  ............  ..........  ..........
                                                      12-12-00  ..........  ............  ..........  ..........
                                                      12-13-00  ..........  ............  ..........  ..........
                                                      12-21-00  ..........  ............  ..........  ..........
                                                      12-22-00  ..........  ............  ..........  ..........
                                                      12-23-00  ..........  ............  ..........  ..........
                                                      12-31-00  ..........  ............  ..........  ..........
                                                      12-32-00  ..........  ............  ..........  ..........
                                                      12-34-00  ..........  ............  ..........  ..........
                                                      12-35-00  ..........  ............  ..........  ..........
                                                      12-61-00  ..........  ............  ..........  ..........
Stationery and printing...................     458  ..........  \2\21-61-x
                                                                         x  ............  \2\41-61-x
                                                                                                   x  ..........
Other expenses............................     460    11-61-99    21-61-99  ............    41-61-99    61-61-99
General joint facilities--Dr..............     461  ..........  ..........      37-61-00  ..........  ..........
General joint facilities--Cr..............     462  ..........  ..........      38-61-00  ..........  ..........
Various expenses..........................  ......    11-61-94    21-61-94  ............    41-61-94    61-61-94
----------------------------------------------------------------------------------------------------------------
Footnotes:
\1\ Freight account activity/subactivity numbers are shown except when old accounts are exclusively passenger
  expenses Passenger and common activity/subactivity numbers shall be used where appropriate.
\2\ Account numbers with the last 2 digits ``xx'' indicates that the account is subdivided by applicable
  functions See account texts for appropriate function assignment.


       Transportation Operating Revenue Accounts Conversion Table
------------------------------------------------------------------------
 System of accounts eff. prior to Jan.   System of accounts eff. Jan. 1,
                1, 1978                               1978
------------------------------------------------------------------------
         Account title            No.    No.         Account title
------------------------------------------------------------------------
    3Transportation Revenue
            Accounts
 
------------------------------------------------------------------------
0Transportation; rail line.....    100    100  Transportation; rail
                                                line.
Freight........................    101    101  Freight.
Passenger......................    102    102  Passenger.
Baggage........................    103    103  Passenger-related.
Sleeping car...................    104    103      Do.
Parlor and chair car...........    105    103      Do.
Other passenger-train..........    108    103      Do.
Milk...........................    109    101  Freight.
Switching......................    110    104  Switching.
Water transfers................    113    105  Water transfers.
Incidental.....................    130    110  Incidental.
Dining and buffet..............    131    103  Passenger-related.
Hotel and restaurant...........    132    110  Incidental.
Station, train, and boat           133    110      Do.
 privileges.
Storage; freight...............    135    110      Do.
Demurrage......................    137    106  Demurrage.
Communication..................    138    110  Incidental.
Grain elevator.................    139    110      Do.
Power..........................    141    110      Do.

[[Page 136]]

 
Rent of buildings and other        142    110      Do.
 property.
Miscellaneous..................    143    110      Do.
Joint facility.................    150    120  Joint facility.
Joint facility--cr.............    151    121  Joint facility--cr.
Joint facility--dr.............    152    122  Joint facility--dr.
------------------------------------------------------------------------


                    Income Accounts Conversion Table
------------------------------------------------------------------------
 System of accounts eff. prior to Jan.   System of accounts eff. Jan. 1,
                1, 1978                               1978
------------------------------------------------------------------------
         Account title            No.    No.         Account title
------------------------------------------------------------------------
        3Income Accounts
 
------------------------------------------------------------------------
0Railway operating revenues....    501    501  Railway operating
                                                revenues.
Revenues from miscellaneous        502    506  Revenues from property
 operations.                                    used in other than
                                                carrier operations.
Hire of freight cars and           503  .....  32-22-00, 32-23-00, 36-22-
 highway revenue freight                        00, and 36-23-00.
 equipment; credit balance.
Rent from locomotives..........    504  .....  32-21-00, and 36-21-00.
Rent from passenger-train cars.    505  .....  32-25-00, and 36-25-00.
Rent from floating equipment...    506  .....  32-23-00, and 36-23-00.
Rent from work equipment.......    507  .....  32-23-00, and 36-23-00.
Joint facility rent income.....    508  .....  34-11-00, 34-12-00, 34-13-
                                                00, 34-21-00, 34-22-00,
                                                and 34-23-00
Income from lease of road and      509  .....  32-11-00, 32-12-00, 32-13-
 equipment.                                     00, 32-21-00, 32-22-00,
                                                and 32-23-00.
Miscellaneous rent income......    510    510  Miscellaneous rent
                                                income.
Income from nonoperating           511    506  Revenues from property
 property.                                      used in other than
                                                carrier operations.
                                          534  Expenses of property used
                                                in other than carrier
                                                operations.
Separately operated properties;    512    512  Separately operated
 profit.                                        properties; profit.
Dividend income................    513    513  Dividend income.
Interest income................    514    514  Interest income.
Income from sinking and other      516    516  Income from sinking and
 reserve funds.                                 other reserve funds.
Release of premiums on funded      517    517  Release of premiums on
 debt.                                          funded debt.
Contributions from other           518    518  Contributions from other
 companies.                                     companies.
Miscellaneous income...........    519    519  Miscellaneous income.
Railway operating expenses.....    531    531  Railway operating
                                                expenses.
Railway tax accruals...........    532    556  Income taxes on ordinary
                                                income.
                                               64-61-00 Property Taxes.
                                               12-xx-00 Fringe Benefits.
                                               65-61-00 Other Taxes.
Provision for deferred taxes...    533    557  Provision for deferred
                                                taxes.
Expenses of miscellaneous          534    534  Expenses of property used
 operations.                                    in other than carrier
                                                operations.
Taxes on miscellaneous             535    535  Taxes on property used in
 operating property.                            other than carrier
                                                operations.
Hire of freight cars and           536  .....  31-22-00, 35-22-00, 31-23-
 highway revenue freight                        00, and 35-23-00.
 equipment--debit balance.
Rent for locomotives...........    537  .....  31-21-00, and 35-21-00.
Rent for passenger-train cars..    538  .....  31-25-00, and 35-25-00.
Rent for floating equipment....    539  .....  31-23-00, and 35-23-00.
Rent for work equipment........    540  .....  31-23-00, and 35-23-00.
Joint facility rents...........    541  .....  33-11-00, 33-12-00, 33-13-
                                                00, 33-21-00, 33-22-00,
                                                and 33-23-00.
Rent for leased roads..........    542  .....  31-11-00, 31-12-00, 31-13-
                                                00, 31-21-00, 31-22-00,
                                                and 31-23-00.
Miscellaneous rents............    543    543  Miscellaneous rents.
Miscellaneous tax accruals.....    544    544  Miscellaneous taxes.
Taxes on property used in other    535
 than carrier operations.
Separately operated properties;    545    545  Separately operated
 loss.                                          properties; loss.
Interest on funded debt........    546    546  Interest on funded debt.
Interest on unfunded debt......    547    547  Interest on unfunded
                                                debt.
Amortization of discount on        548    548  Amortization of discount
 funded debt.                                   on funded debt.
Maintenance of investment          549    549  Maintenance of investment
 organization.                                  organization.
Income transferred to other        550    550  Income transferred to
 companies.                                     other companies.
Miscellaneous income charges...    551    551  Miscellaneous income
                                                charges.
                                          553  Uncollectible accounts.

[[Page 137]]

 
Unusual or infrequent items        555    555  Unusual or infrequent
 (debit) credit.                                items (debit) credit.
Income or loss from operations     560    560  Income or loss from
 of discontinued segments.                      operations of
                                                discontinued segments.
Gain or loss on disposal of        562    562  Gain or loss on disposal
 discontinued segments.                         of discontinued
                                                segments.
Extraordinary items (net)......    570    570  Extraordinary items
                                                (net).
Income taxes on extraordinary      590    590  Income taxes on
 items.                                         extraordinary items.
Provision for deferred taxes--     591    591  Provision for deferred
 extraordinary items.                           taxes--extraordinary
                                                items.
Cumulative effect of changes in    592    592  Cumulative effect of
 accounting principles.                         changes in accounting
                                                principles.
------------------------------------------------------------------------


                Retained Income Accounts Conversion Table
------------------------------------------------------------------------
 System of accounts eff. prior to Jan.   System of accounts eff. Jan. 1,
                1, 1978                               1978
------------------------------------------------------------------------
         Account title            No.     No.         Account title
------------------------------------------------------------------------
            3Credit
 
------------------------------------------------------------------------
0Credit balance (at beginning      601     601  Credit balance (at
 of calendar year).                              beginning of calendar
                                                 year).
Prior period adjustments to      601.5   601.5  Prior period adjustments
 beginning retained income                       to beginning retained
 account.                                        earnings account.
Credit balance transferred         602     602  Credit balance
 from income.                                    transferred from
                                                 income.
Other credits to retained          606     606  Other credits to
 income.                                         retained earnings.
 
------------------------------------------------------------------------
            3Debit
 
------------------------------------------------------------------------
0Debit balance (at beginning       611     611  Debit balance (at
 of calendar year).                              beginning of calendar
                                                 year).
Debit balance transferred from     612     612  Debit balance
 income.                                         transferred from
                                                 income.
Other debits to retained           616     616  Other debits to retained
 income.                                         earnings.
Appropriations for sinking and     620     620  Appropriations for
 other reserve funds.                            sinking and other
                                                 funds.
Appropriations for other           621     621  Appropriations for other
 purposes.                                       purposes.
Appropriations released.......     622     603  Appropriations released.
Dividends.....................     623     623  Dividends.
------------------------------------------------------------------------


             General Balance Sheet Accounts Conversion Table
------------------------------------------------------------------------
 System of accounts eff. prior to Jan.   System of accounts eff. Jan. 1,
                1, 1978                               1978
------------------------------------------------------------------------
         Account title            No.     No.         Account title
------------------------------------------------------------------------
Cash..........................     701     701  Cash.
Temporary cash investments....     702     702  Temporary cash
                                                 investments.
Special deposits..............     703     703  Special deposits.
Loans and notes receivable....     704     704  Loans and notes
                                                 receivable.
                                         708.5  Receivables from
                                                 affiliated companies.
                                         709.5  Allowance for
                                                 uncollectible accounts.
Traffic, car service and other     705     705  Accounts receivable;
 balances--dr.                                   interline and other
                                                 balances.
                                         709.5  Allowances for
                                                 uncollectible accounts.
                                           752  Accounts payable;
                                                 interline and other
                                                 balances.
Net balance receivable from        706     706  Accounts receivable;
 agents and conductors.                          customers.
Miscellaneous accounts             707     707  Accounts receivable;
 receivable.                                     other.
                                         708.5  Receivables from
                                                 affiliated companies.
                                         709.5  Allowance for
                                                 uncollectible accounts.
Interest and dividends             708     708  Interest and dividends
 receivable.                                     receivable.
                                         708.5  Receivables from
                                                 affiliated companies.
                                         709.5  Allowance for
                                                 uncollectible accounts.
Accrued accounts receivable...     709     709  Accrued accounts
                                                 receivable.
Working fund advances.........     710     710  Working funds.
Prepayments...................     711     711  Prepayments.
Material and supplies.........     712     712  Material and supplies.
Other current assets..........     713     713  Other current assets.
Deferred income tax charges...     714     714  Deferred income tax
                                                 debits.
Sinking funds.................     715     715  Sinking funds.
Capital and other reserve          716     716  Capital funds.
 funds.
Insurance and other funds.....     717     717  Other funds.

[[Page 138]]

 
Investment in affiliated           721     721  Investments and
 companies.                                      advances; affiliated
                                                 companies.
Other investments.............     722     722  Other investments and
                                                 advances.
Reserve for adjustment of          723   721.5  Adjustments; investments
 investment in securities--cr.                   and advances--
                                                 affiliated companies.
                                           723  Adjustments; other
                                                 investments and
                                                 advances.
Road and equipment property...     731     731  Road and equipment
                                                 property.
Organization expenses.........      71     739  Organization expenses.
Improvements on leased             732     732  Improvements on leased
 property.                                       property.
Accrued depreciation;              733     733  Accumulated
 improvements on leased                          depreciation;
 property.                                       improvements on leased
                                                 property.
Accrued depreciation; road and     735     735  Accumulated
 equipment.                                      depreciation; road and
                                                 equipment property.
Amortization of defense            736     736  Accumulated
 projects; road and equipment.                   amortization; road and
                                                 equipment property--
                                                 defense projects.
                                           734  Accumulated
                                                 amortization;
                                                 improvements on leased
                                                 property--defense
                                                 projects.
Miscellaneous physical             737     737  Property used in other
 property.                                       than carrier
                                                 operations.
Accrued depreciation;              738     738  Accumulated
 miscellaneous physical                          depreciation; property
 property.                                       used in other than
                                                 carrier operations.
Other assets..................     741     741  Other assets.
Unamortized discount on long-    770.1   770.1  Unamortized debt
 term debt.                                      discount.
Other deferred charges........     743     743  Other deferred debits.
Accumulated deferred income        744     744  Accumulated deferred
 tax charges.                                    income tax debits.
 
------------------------------------------------------------------------
         3Liabilities
 
------------------------------------------------------------------------
0Loans and notes payable......     751     751  Loans and notes payable.
                                           757  Payables to affiliated
                                                 companies.
Traffic, car service and other     752     752  Accounts payable;
 balances--cr.                                   interline and other
                                                 balances.
                                           705  Accounts receivable;
                                                 interline and other
                                                 balances.
                                         709.5  Allowance for
                                                 uncollectible accounts.
Audited accounts and wages         753     753  Audited accounts and
 payable.                                        wages payable.
Miscellaneous accounts payable     754     754  Accounts payable; other.
                                           757  Payables to affiliated
                                                 companies.
Interest matured unpaid.......     755     755  Interest payable.
                                           757  Payables to affiliated
                                                 companies.
Dividends matured unpaid......     756     756  Dividends payable.
                                           757   Payables to affiliated
                                                 companies.
Unmatured interest accrued....     757     755  Interest payable.
                                           757  Payables to affiliated
                                                 companies.
Unmatured dividends declared..     758     756  Dividends payable.
                                           757  Payables to affiliated
                                                 companies.
Accrued accounts payable......     759     759  Accrued accounts
                                                 payable.
Federal income taxes accrued..     760     760  Federal income taxes
                                                 accrued.
Other taxes accrued...........     761     711  Prepayments.
                                           761  State and other income
                                                 taxes accrued.
                                         761.5  Other taxes accrued.
Deferred income tax credits...     762     762  Deferred inome tax
                                                 credits.
Other current liabilities.....     763     763  Other currrent
                                                 liabilities.
Equipment obligations and          764     764  Equipment obligations
 other debt due within one                       and other long-term
 year.                                           debt due within 1 year.
Funded debt unmatured.........     765     765  Funded debt unmatured.
Equipment obligations.........     766     766  Equipment obligations.
Receivers' and trustees'           767     767  Receivers' and trustees'
 securities.                                     securities.
Debt in default...............     768     768  Debt in default.
Amounts payable to affiliated      769     769  Accounts payable;
 companies.                                      affiliated companies.
Pension and welfare reserves..     771     771  Accrued liability;
                                                 pension and welfare.
Casualty and other reserves...     774     774  Accrued liability;
                                                 casualty and other
                                                 claims.
                                           775  Other accrued
                                                 liabilities.
Interest in default...........     781     781  Interest in default.
Other liabilities.............     782     782  Other liabilities.
Unamortized premium on long-     790.2   770.2  Unamortized premium on
 term debt.                                      debt.
Other deferred credits........     784     784  Other deferred credits.
Accrued liability; leased          785     772  Accrued liability;
 property.                                       leased property.
Accumulated deferred income        786     786  Accumulated deferred
 tax credits.                                    income tax credits.
 
------------------------------------------------------------------------
3
[[Page 139]]

 
     Shareholders' Equity
 
------------------------------------------------------------------------
0Capital stock issued.........     791     791  Capital stock.
Stock liability for conversion     792     792  Liability for conversion
                                                 of capital stock.
Discount on capital stock.....     793     793  Discount on capital
                                                 stock.
Premiums and assessment on         794     794  Premiums and assessments
 capital stock.                                  on capital stock.
Paid-in surplus...............     795     795  Other capital.
Other capital surplus.........     796     795      Do.
Retained income; appropriated.     797     797  Retained earnings;
                                                 appropriated.
Retained income;                   798     798  Retained earnings;
 unappropriated.                                 unappropriated.
Treasury stock................   798.5   798.5  Treasury stock.
------------------------------------------------------------------------



                Subpart B--Branch Line Accounting System

900  Definitions.
    Unless otherwise required by context, the following definitions 
apply in this subpart:
    Account means an account in the ICC's Uniform System of Accounts 
(USOA), for Railroad companies (49 CFR Part 1201, Subpart A).
    IC Act means the Interstate Commerce Act (49 U.S.C. 1 et seq.), as 
amended.
    Branch Line or Branch means a rail line or segment of line which (a) 
has been designated on a transportation system diagram in categories 
(1), (2), (3), or (4) (49 CFR 1152.10(b) (1), (2), (3), (4)); or (b) is 
the subject of a directed service order under section 304(d)(3) of the 
3R Act; or (c) is the subject of a rail continuation service agreement 
entered into prior to the designation of the line on a system diagram.
    STB or Board means the Surface Transportation Board.
    Designated State agency means the instrumentality created by a State 
or designated by appropriate authority to administer or coordinate its 
State rail plan as required by section 5(j)(2) of the Department of 
Transportation Act (90 Stat. 131) or section 402(c)(1)(A) of the 3R Act 
(87 Stat. 985) or regulations promulgated pursuant thereto.
    RSPO means the Rail Services Planning Office of the Surface 
Transportation Board.
    Railroad means a common carrier by railroad, as defined in section 
1(3) of the Interstate Commerce Act (49 U.S.C. 1(3)).
    3R Act means the Regional Rail Reorganization Act of 1973, Pub. L. 
93-236, 87 Stat. 985, as amended.
    4R Act means the Railroad Revitalization and Regulatory Reform Act 
of 1976, Pub. L. 94-210, 90 Stat. 31.
    XX, when used in place of digits in a six-digit account number, 
means that all accounts containing the remaining four-digits are 
included. Example: 11-21-XX refers to all salary and wage accounts for 
locomotives because 11 designates salaries and wages and 21 designates 
locomotives. Thus, 11-21-XX includes all of the following accounts: 11-
21-01; 11-21-40; 11-21-48; 11-21-39; and 11-21-99. Similarly, XX-31-67 
means all accounts containing 31 (train operations) and 67 (locomotive 
fuel).

[43 FR 1733, Jan. 11, 1978, as amended at 47 FR 49596, Nov. 1, 1982]
910  Purpose and scope.
    (a) Section 205(e)(1)(A) of the 3R Act directs the office to issue 
regulations which will permit the collection and publication by the 
Consolidated Rail Corp. (ConRail), or by profitable railroads of 
information necessary to determine accurately the revenues attributable, 
avoidable costs, and service units of light-density lines scheduled for 
abandonment. This accurate information is intended to facilitate the 
determination of the revenues and avoidable costs in abandonment 
proceedings and in potential offers of subsidy. This information is 
intended to be compatible with the Regional Subsidy Standards (49 CFR 
Part 1155), for those lines which were not conveyed to ConRail under the 
final system plan and with the National Subsidy Standards (49

[[Page 140]]

CFR Part 1152, Subpart D), for all other lines. The purpose of the 
Branch Line Accounting System regulations is to specify an accounting 
system for the collection and publication of this information.
    (b) For further information regarding the Branch Line Accounting 
System, persons may contact the RSPO's Cost Evaluation Branch: Cost 
Evaluation Branch, Rail Services Planning Office, 1900 L Street NW., 
Washington, DC 20036, 202-254-7552.

[43 FR 1733, Jan. 11, 1978, as amended at 47 FR 49596, Nov. 1, 1982]
920  Collection of data.
    (a) Lines for which data collection is required. The railroad shall 
collect data on all branch lines which meet the criteria listed in 
paragraphs 1 through 4 below. The data to be collected are specified in 
section 920(b).
    (1) Branch lines in categories (1), (2), and (3) on the System 
Diagram Map include, respectively, lines for which a carrier intends to 
file an abandonment application within three years, lines which the 
carrier has under study and are potentially subject to abandonment, and 
lines for which an abandonment application is pending before the Board. 
The collection of data on such lines shall commence on the first day of 
the month after the line has been designated in one of the categories 
and will continue so long as the branch line is retained in one of these 
categories. The assignment and apportionment methodology set forth in 
Part 1152, Subchapter B (National Subsidy Standards), shall be applied.
    (2) For branch lines operated under an order directing service, 
under section 304(d)(3) of the 3R Act, data shall be collected from the 
effective date of the order until the order is withdrawn. The assignment 
and apportionment methodology set forth in Part 1155, Subchapter B 
(Regional Subsidy Standards), shall be applied.
    (3) For branch lines operated under a rail service continuation 
agreement under section 1a(6)(a) of the IC Act, data shall be collected 
from the effective date of the agreement until the termination of the 
agreement. The assignment and apportionment methodology set forth in 
Part 1152, Subchapter B (National Subsidy Standards), shall be applied.
    (4) For branch lines operated under a rail service continuation 
agreement under section 304 of the 3R Act, data collection shall 
commence on the effective date of the agreement and shall continue until 
the termination date of the agreement. The assignment and apportionment 
methodology set forth in Part 1155, Subchapter B (Regional Subsidy 
Standards), shall be applied.
    (b) Data to be collected. The data collected shall include the items 
of revenue, expense, and service units which are specified in Parts 1152 
and 1155, Subchapter B (National and Regional Subsidy Standards), as 
described in the account texts listed in section 950. The format for 
presentation of these data is specified in section 940.

[43 FR 1733, Jan. 11, 1978, as amended at 47 FR 49596, Nov. 1, 1982]
930  Publication of data.
    (a) General. The railroad shall file on or before June 30 of each 
calendar year the certification included in these regulations as 
Appendix I. The railroad shall include a description of each branch line 
using the format set forth in Appendix I of these regulations. The 
description of each branch line requires the same data as that submitted 
under 49 CFR 1152.11. This section prescribes the branch line 
information required in conjunction with the system diagram maps 
specifying the line's designation, states and counties traversed, 
delineation of mileposts, and location of agency and terminal stations.
    (b) [Reserved]
    (c) Access to records. The records, accounts, working papers, and 
other documents reflecting the revenues, cost, and service unit data of 
each branch line for which the railroad must maintain data shall be made 
available for inspection and examination by the Board and, for lines 
situated within its State, by the designated State agency at a time and 
place mutually agreeable to the parties. The railroad shall also 
reproduce such records for the designated State agency, provided the 
agency pays the reasonable cost thereof.

[[Page 141]]

    (d) Waivers and modifications. The Office may, with respect to 
individual requests, upon good cause shown, waive or modify any 
requirement of this section not required by law.

[43 FR 1733, Jan. 11, 1978, as amended at 44 FR 9730, Feb. 14, 1979; 47 
FR 49596, Nov. 1, 1982]
940  Annual branch line report.
    This section specifies the format in which the data collected for 
each branch line shall be maintained. Definitions of each account are 
presented in section 950.

------------------------------------------------------------------------
                  (A) Attributable revenue                      Amount
------------------------------------------------------------------------
101  Freight................................................  ..........
104  Switching..............................................  ..........
105  Water transfers........................................  ..........
106  Demurrage..............................................  ..........
110  Incidental.............................................  ..........
121  Joint facility--credit.................................  ..........
122  Joint facility--debit..................................  ..........
506  Revenue from property used in other than carrier
 operations.................................................  ..........
510  Miscellaneous rent income..............................  ..........
519  Miscellaneous income...................................  ..........
599  Subsidy payments from preexisting contracts............  ..........
                                                             ===========
      Total attributable revenues...........................  ..........
------------------------------------------------------------------------


                                          (B) On-Branch Avoidable Costs
----------------------------------------------------------------------------------------------------------------
                                                                                 Freight
                                                       ---------------------------------------------------------
                                                                       Material,
                    Line item--(a)                       Salaries        tools,
                                                        and wages--    supplies,       Purchased    General--(e)
                                                            (b)        fuels, and    services--(d)
                                                                    lubricants--(c)
----------------------------------------------------------------------------------------------------------------
(1) Actual or apportioned expense accounts:
  Way and structures: Administration:
  001  Track..........................................  ..........  ...............  .............  ............
  002  Bridge and Building............................  ..........  ...............  .............  ............
  003  Signal.........................................  ..........  ...............  .............  ............
  004  Communication..................................  ..........  ...............  .............  ............
  005  Other..........................................  ..........  ...............  .............  ............
  Repair and maintenance:
  006  Roadway--Running...............................  ..........  ...............  .............  ............
  007  Roadway--Switching.............................  ..........  ...............  .............  ............
  008  Tunnels and Subways--Running...................  ..........  ...............  .............  ............
  009  Tunnels and Subways--Switching.................  ..........  ...............  .............  ............
  010  Bridges and Culverts--Running..................  ..........  ...............  .............  ............
  011  Bridges and Culverts--Switching................  ..........  ...............  .............  ............
  012  Ties--Running..................................         N/A  ...............           N/A           N/A
  013  Ties--Switching................................         N/A  ...............           N/A           N/A
  014  Rail--Running..................................         N/A  ...............           N/A           N/A
  015  Rail--Switching................................         N/A  ...............           N/A           N/A
  016  Other Track Material--Running..................         N/A  ...............           N/A           N/A
  017  Other Track Material--Switching................         N/A  ...............           N/A           N/A
  018  Ballast--Running...............................         N/A  ...............           N/A           N/A
  019  Ballast--Switching.............................         N/A  ...............           N/A           N/A
  020  Track Laying and Surfacing--Running............  ..........  ...............  .............  ............
  021  Track Laying and Surfacing--Switching..........  ..........  ...............  .............  ............
  022  Road Property Damaged--Running.................  ..........  ...............  .............  ............
  023  Road Property Damaged--Switching...............  ..........  ...............  .............  ............
  024  Road Property Damaged--Other...................  ..........  ...............  .............  ............
  025  Signals and Interlockers--Running..............  ..........  ...............  .............  ............
  026  Signals and Interlockers--Switching............  ..........  ...............  .............  ............
  027  Communications Systems.........................  ..........  ...............  .............  ............
  028  Electric Power Systems.........................  ..........  ...............  .............  ............
  029  Highway Grade Crossings--Running...............  ..........  ...............  .............  ............
  030  Highway Grade Crossings--Switching.............  ..........  ...............  .............  ............
  031  Station and Office Buildings...................  ..........  ...............  .............  ............
  032  Shop Buildings--Locomotives....................  ..........  ...............  .............  ............
  033  Shop Buildings--Freight Cars...................  ..........  ...............  .............  ............
  034  Shop Buildings--Other Equipment................  ..........  ...............  .............  ............
  101  Locomotive Servicing Facilities................  ..........  ...............  .............  ............
  102  Miscellaneous Buildings and Structures.........  ..........  ...............  .............  ............
  103  Coal Terminals.................................  ..........  ...............  .............  ............
  104  Ore Terminals..................................  ..........  ...............  .............  ............
  105  Other Marine Terminals.........................  ..........  ...............  .............  ............
  106  TOFC/COFC--Terminals...........................  ..........  ...............  .............  ............
  107  Motor Vehicle Loading and Distribution
   Facilities.........................................  ..........  ...............  .............  ............
  108  Facilities for Other Specialized Service
   Operations.........................................  ..........  ...............  .............  ............
  109  Roadway Machines...............................  ..........  ...............  .............  ............
  110  Small Tools and Supplies.......................  ..........  ...............  .............  ............

[[Page 142]]

 
  111  Snow Removal...................................  ..........  ...............  .............  ............
  112  Fringe Benefits--Running.......................         N/A            N/A             N/A   ............
  113  Fringe Benefits--Switching.....................         N/A            N/A             N/A   ............
  114  Fringe Benefits--Other.........................         N/A            N/A             N/A   ............
  115  Casualties and Insurance--Running..............         N/A            N/A             N/A   ............
  116  Casualties and Insurance--Switching............         N/A            N/A             N/A   ............
  117  Casualties and Insurance--Other................         N/A            N/A             N/A   ............
  118  Lease Rentals--Debit--Running..................         N/A            N/A    .............          N/A
  119  Lease Rentals--Debit--Switching................         N/A            N/A    .............          N/A
  120  Lease Rentals--Debit--Other....................         N/A            N/A    .............          N/A
  121  Lease Rentals--(Credit)--Running...............         N/A            N/A    .............          N/A
  122  Lease Rentals--(Credit)--Switching.............         N/A            N/A    .............          N/A
  123  Lease Rentals--(Credit)--Other.................         N/A            N/A    .............          N/A
  124  Joint Facility Rent--Debit--Running............         N/A            N/A    .............          N/A
  125  Joint Facility Rent--Debit--Switching..........         N/A            N/A    .............          N/A
  126  Joint Facility Rent--Debit--Other..............         N/A            N/A    .............          N/A
  127  Joint Facility Rent--(Credit)--Running.........         N/A            N/A    .............          N/A
  128  Joint Facility Rent--(Credit)--Switching.......         N/A            N/A    .............          N/A
  129  Joint Facility Rent--(Credit)--Other...........         N/A            N/A    .............          N/A
  130  Other Rents--Debit--Running....................         N/A            N/A    .............          N/A
  131  Other Rents--Debit--Switching..................         N/A            N/A    .............          N/A
  132  Other Rents--Debit--Other......................         N/A            N/A    .............          N/A
  133  Other Rents--(Credit)--Running.................         N/A            N/A    .............          N/A
  134  Other Rents--(Credit)--Switching...............         N/A            N/A    .............          N/A
  135  Other Rents--(Credit)--Other...................         N/A            N/A    .............          N/A
  136  Depreciation--Running..........................         N/A            N/A             N/A   ............
  137  Depreciation--Switching........................         N/A            N/A             N/A   ............
  138  Depreciation--Other............................         N/A            N/A             N/A   ............
  139  Joint Facility--Debit--Running.................         N/A            N/A    .............          N/A
  140  Joint Facility--Debit--Switching...............         N/A            N/A    .............          N/A
  141  Joint Facility--Debit--Other...................         N/A            N/A    .............          N/A
  142  Joint Facility--(Credit)--Running..............         N/A            N/A    .............          N/A
  143  Joint Facility--(Credit)--Switching............         N/A            N/A    .............          N/A
  144  Joint Facility--(Credit)--Other................         N/A            N/A    .............          N/A
  145  Dismantling Retired Road Property--Running.....  ..........  ...............  .............  ............
  146  Dismantling Retired Road Property--Switching...  ..........  ...............  .............  ............
  147  Dismantiling Retired Road Property--Other......  ..........  ...............  .............  ............
  148  Other--Running.................................  ..........  ...............  .............  ............
  149  Other--Swtiching...............................  ..........  ...............  .............  ............
  150  Other--Other...................................  ..........  ...............  .............  ............
  151      Total Way and Structures...................  ..........  ...............  .............  ............
  Equipment: Locomotives:
  201  Administration.................................  ..........  ...............  .............  ............
  202  Repair and Maintenance.........................  ..........  ...............  .............  ............
  203  Machinery Repair...............................  ..........  ...............  .............  ............
  204  Equipment Damaged..............................  ..........  ...............  .............  ............
  205  Fringe Benefits................................         N/A            N/A             N/A   ............
  206  Other Casualties and Insurance.................         N/A            N/A             N/A   ............
  207  Lease Rentals--Debit...........................         N/A            N/A    .............          N/A
  208  Lease Rentals--(Credit)........................         N/A            N/A    .............          N/A
  209  Joint Facility Rent--Debit.....................         N/A            N/A    .............          N/A
  210  Joint Facility Rent--(Credit)..................         N/A            N/A    .............          N/A
  211  Other Rents--Debit.............................         N/A            N/A    .............          N/A
  212  Other Rents--(Credit)..........................         N/A            N/A    .............          N/A
  213  Depreciation...................................         N/A            N/A             N/A   ............
  214  Joint Facility--Debit..........................         N/A            N/A    .............          N/A
  215  Joint Facility--(Credit).......................         N/A            N/A    .............          N/A
  216  Repairs Billed to Others--(Credit).............         N/A            N/A    .............          N/A
  217  Dismantling Retired Property...................  ..........  ...............  .............  ............
  218  Other..........................................  ..........  ...............  .............  ............
  219      Total Locomotives..........................  ..........  ...............  .............  ............
  Freight cars:
  220  Administration.................................  ..........  ...............  .............  ............
  221  Repair and Maintenance.........................  ..........  ...............  .............  ............
  222  Machinery Repair...............................  ..........  ...............  .............  ............
  223  Equipment Damaged..............................  ..........  ...............  .............  ............
  224  Fringe Benefits................................         N/A            N/A             N/A   ............

[[Page 143]]

 
  225  Other Casualties and Insurance.................         N/A            N/A             N/A   ............
  226  Lease Rentals--Debit...........................         N/A            N/A    .............          N/A
  227  Lease Rentals--(Credit)........................         N/A            N/A    .............          N/A
  228  Joint Facility Rent--Debit.....................         N/A            N/A    .............          N/A
  229  Joint Facility Rent--(Credit)..................         N/A            N/A    .............          N/A
  230  Other Rents--Debit.............................         N/A            N/A    .............          N/A
  231  Other Rents--(Credit)..........................         N/A            N/A    .............          N/A
  232  Depreciation...................................         N/A            N/A             N/A   ............
  233  Joint Facility--Debit..........................         N/A            N/A    .............          N/A
  234  Joint Facility--(Credit).......................         N/A            N/A    .............          N/A
  235  Repairs Billed to Others--(Credit).............         N/A            N/A    .............          N/A
  236  Dismantling Retired Property...................  ..........  ...............  .............  ............
  237  Other..........................................  ..........  ...............  .............  ............
  238      Total Freight Cars.........................  ..........  ...............  .............  ............
  Other Equipment:
  301  Administration.................................  ..........  ...............  .............  ............
  Repair and Maintenance:
  302  Trucks, Trailers, and Containers--Revenue
   Service............................................  ..........  ...............  .............  ............
  303  Floating Equipment--Revenue Service............  ..........  ...............  .............  ............
  304  Floating and Other Revenue Equipment...........  ..........  ...............  .............  ............
  305  Computers and Data Processing Systems..........  ..........  ...............  .............  ............
  306  Machinery......................................  ..........  ...............  .............  ............
  307  Work and Other Non-Revenue Equipment...........  ..........  ...............  .............  ............
  308  Equipment Damaged..............................  ..........  ...............  .............  ............
  309  Fringe Benefits................................         N/A            N/A             N/A   ............
  310  Other Casualties and Insurance.................         N/A            N/A             N/A   ............
  311  Lease Rentals--Debit...........................         N/A            N/A    .............          N/A
  312  Lease Rentals--(Credit)........................         N/A            N/A    .............          N/A
  313  Joint Facility Rent--Debit.....................         N/A            N/A    .............          N/A
  314  Joint Facility Rent--(Credit)..................         N/A            N/A    .............          N/A
  315  Other Rents--Debit.............................         N/A            N/A    .............          N/A
  316  Other Rents--(Credit)..........................         N/A            N/A    .............          N/A
  317  Depreciation...................................         N/A            N/A             N/A   ............
  318  Joint Facility--Debit..........................         N/A            N/A    .............          N/A
  319  Joint Facility--(Credit).......................         N/A            N/A    .............          N/A
  320  Repairs Billed to Others--(Credit).............  ..........  ...............  .............  ............
  321  Dismantling Retired Property...................  ..........  ...............  .............  ............
  322  Other..........................................  ..........  ...............  .............  ............
  323      Total Other Equipment......................  ..........  ...............  .............  ............
  324      Total Equipment............................  ..........  ...............  .............  ............
  Transportation: Train operations:
  401  Administration.................................  ..........  ...............  .............  ............
  402  Engine Crews...................................  ..........  ...............  .............  ............
  403  Train Crews....................................  ..........  ...............  .............  ............
  404  Dispatching Trains.............................  ..........  ...............  .............  ............
  405  Operating Signals and Interlockers.............  ..........  ...............  .............  ............
  406  Operating Drawbridges..........................  ..........  ...............  .............  ............
  407  Highway Crossing Protection....................  ..........  ...............  .............  ............
  408  Train Inspection and Lubrication...............  ..........  ...............  .............  ............
  409  Locomotive Fuel................................  ..........  ...............  .............  ............
  410  Electric Power Purchased or Produced for Motive
   Power..............................................  ..........  ...............  .............  ............
  411  Servicing Locomotives..........................  ..........  ...............  .............  ............
  412  Freight Lost or Damaged--Solely Related........         N/A            N/A             N/A   ............
  413  Clearing Wrecks................................  ..........  ...............  .............  ............
  414  Fringe Benefits................................         N/A            N/A             N/A   ............
  415  Other Casualties and Insurance.................         N/A            N/A             N/A   ............
  416  Joint Facility--Debit..........................         N/A            N/A    .............          N/A
  417  Joint Facility--(Credit).......................         N/A            N/A    .............           NA
  418  Other..........................................  ..........  ...............  .............  ............
  419      Total Train Operations.....................  ..........  ...............  .............  ............
  Yard Operations:
  420  Administration.................................  ..........  ...............  .............  ............
  421  Switch Crews...................................  ..........  ...............  .............  ............
  422  Controlling Operations.........................  ..........  ...............  .............  ............
  423  Yard and Terminal Clerical.....................  ..........  ...............  .............  ............
  424  Operating Switches, Signals Retarders and Humps  ..........  ...............  .............  ............
  425  Locomotive Fuel................................  ..........  ...............  .............  ............

[[Page 144]]

 
  426  Electric Power Purchased or Produced for Motive
   Power..............................................  ..........  ...............  .............  ............
  427  Servicing Locomotives..........................  ..........  ...............  .............  ............
  428  Freight Lost or Damaged--Solely Related........         N/A            N/A             N/A   ............
  429  Clearing Wrecks................................  ..........  ...............  .............  ............
  430  Fringe Benefits................................         N/A            N/A             N/A   ............
  431  Other Casualties and Insurance.................         N/A            N/A             N/A   ............
  432  Joint Facility--Debit..........................         N/A            N/A    .............          N/A
  433  Joint Facility--(Credit).......................         N/A            N/A    .............          N/A
  434  Other..........................................  ..........  ...............  .............  ............
  435      Total Yard Operations......................  ..........  ...............  .............  ............
  Train and Yard Operations Common:
  501  Cleaning Car Interiors.........................  ..........  ...............  .............          N/A
  502  Adjusting and Transferring Loads...............  ..........  ...............  .............          N/A
  503  Car Loading Devices and Grain Doors............  ..........  ...............  .............          N/A
  504  Freight Lost or Damaged--all other.............         N/A            N/A             N/A   ............
  505  Fringe Benefits................................         N/A            N/A             N/A   ............
  506      Total Train and Yard Operations Common.....  ..........  ...............  .............  ............
  Specialized Service Operations:
  507  Administration.................................  ..........  ...............  .............  ............
  508  Pickup and Delivery and Marine Line Haul.......  ..........  ...............  .............  ............
  509  Loading and Unloading and Local Marine.........  ..........  ...............  .............  ............
  510  Protection Services............................  ..........  ...............  .............  ............
  511  Freight Lost or Damaged--Solely Related........         N/A            N/A             N/A   ............
  512  Fringe Benefits................................         N/A            N/A             N/A   ............
  513  Casualties and Insurance.......................         N/A            N/A             N/A   ............
  514  Joint Facility--Debit..........................         N/A            N/A    .............          N/A
  515  Joint Facility--(Credit).......................         N/A            N/A    .............          N/A
  516  Other..........................................  ..........  ...............  .............  ............
  517      Total Specialized Services Operations......  ..........  ...............  .............  ............
  Administrative Support Operations:
  518  Administration.................................  ..........  ...............  .............  ............
  519  Employees Performing Clerical and Accounting
   Functions..........................................  ..........  ...............  .............  ............
  520  Communication Systems Operation................  ..........  ...............  .............  ............
  521  Loss and Damage Claims Processing..............  ..........  ...............  .............  ............
  522  Fringe Benefits................................         N/A            N/A             N/A   ............
  523  Casualties and Insurance.......................         N/A            N/A             N/A   ............
  524  Joint Facility--Debit..........................         N/A            N/A    .............          N/A
  525  Joint Facility--(Credit).......................         N/A            N/A    .............          N/A
  526  Other..........................................  ..........  ...............  .............  ............
  527      Total Administrative Support Operations....  ..........  ...............  .............  ............
  528      Total transportation.......................  ..........  ...............  .............  ............
  General and Administrative:
  601  Officers--General Administration...............  ..........  ...............  .............  ............
  602  Accounting, Auditing and Finance...............  ..........  ...............  .............  ............
  603  Management Services and Data Processing........  ..........  ...............  .............  ............
  604  Marketing......................................  ..........  ...............  .............  ............
  605  Sales..........................................  ..........  ...............  .............  ............
  606  Industrial Development.........................  ..........  ...............  .............  ............
  607  Personnel and Labor Relations..................  ..........  ...............  .............  ............
  608  Legal and Secretarial..........................  ..........  ...............  .............  ............
  609  Public Relations and Advertising...............  ..........  ...............  .............  ............
  610  Research and Development.......................  ..........  ...............  .............  ............
  611  Fringe Benefits................................         N/A            N/A             N/A   ............
  612  Casualties and Insurance.......................         N/A            N/A             N/A   ............
  613  Writedown of Uncollectible Accounts............         N/A            N/A             N/A   ............
  614  Property Taxes.................................         N/A            N/A             N/A   ............
  615  Other Taxes Except on Corporate Income or
   Payrolls...........................................         N/A            N/A             N/A   ............
  616  Joint Facility--Debit..........................         N/A            N/A    .............          N/A
  617  Joint Facility--(Credit).......................         N/A            N/A    .............          N/A
  618  Other..........................................  ..........  ...............  .............  ............
  619      Total General and Administrative...........  ..........  ...............  .............  ............
  620      Total Carrier Operating Expenses...........  ..........  ...............  .............  ............
----------------------------------------------------------------------------------------------------------------


------------------------------------------------------------------------
                                                                Amount
------------------------------------------------------------------------
(2)  Other Computed Cost Elements:
  651  Locomotives return on investment.....................  ..........

[[Page 145]]

 
  652  Freight train car costs..............................  ..........
    01 Per day costs........................................  ..........
    02 Mileage costs........................................  ..........
  654  Rehabilitation.......................................  ..........
  664  Deadheading, taxi and hotel costs....................  ..........
    01 Deadheading..........................................  ..........
    02 Taxi.................................................  ..........
    03 Hotel................................................  ..........
  665  Overhead movement costs..............................  ..........
    01 Transportation.......................................  ..........
    02 Equipment............................................  ..........
    03 Freight train cars--mileage portion..................  ..........
    Total Computed On-Branch Costs..........................  ..........
(3)  Off-Branch Avoidable Costs:
  661  Terminal Costs.......................................  ..........
    01 Modified terminal costs..............................  ..........
    02 Normal terminal costs................................  ..........
    03 Interchange costs....................................  ..........
  662  Freight train car costs..............................  ..........
  663  Freight train revenue ton-mile costs.................  ..........
      Total Off-Branch Avoidable Costs......................  ..........
(4)  All Other Avoidable Costs:
  671  Working capital......................................  ..........
  672  Required capital expenditures........................  ..........
  673  Deferred maintenance.................................  ..........
  674  Current cost of freight train cars, locomotives, and
   other equipment..........................................  ..........
  675  Foregone tax benefits................................  ..........
  676  Administrative costs.................................  ..........
  677  Deferred subsidy payment costs.......................  ..........
  678  Casualty reserve expenses............................  ..........
      Total, all other avoidable costs......................  ..........
  681  Reasonable return on the value of property...........  ..........
  682  Management fee.......................................  ..........
(5)      Total of avoidable costs, reasonable return and
 management fee.............................................           $
                                                             -----------
------------------------------------------------------------------------


                            (C) Service Units
------------------------------------------------------------------------
                                                  Direct on-   Overhead
                                                    branch     movement
------------------------------------------------------------------------
(1) On-Branch Service Units--Freight-Car
 Accounts:
  821  Freight train car miles (loaded and
 empty):
  01  Box--Plain 40 foot........................  ..........  ..........
  02  Box--Plain 50 foot or longer..............  ..........  ..........
  03  Box--Equipped.............................  ..........  ..........
  04  Gondola--Plain............................  ..........  ..........
  05  Gondola--Equipped.........................  ..........  ..........
  06  Hopper--Covered...........................  ..........  ..........
  07  Hopper--Open top--General Service.........  ..........  ..........
  08  Hopper--Open top--Special Service.........  ..........  ..........
  09  Refrigerator--Mechanical..................  ..........  ..........
  10  Refrigerator--Nonmechanical...............  ..........  ..........
  11  Flat--TOFC/COFC...........................  ..........  ..........
  12  Flat--Multi-level.........................  ..........  ..........
  13  Flat--General Service.....................  ..........  ..........
  14  Flat--Other...............................  ..........  ..........
  15  All other cars............................  ..........  ..........
  823  Freight-train Car-days (loaded and
 empty):
  01  Box--Plain 40 foot........................  ..........  ..........
  02  Box--Plain 50 foot or longer..............  ..........  ..........
  03  Box--Equipped.............................  ..........  ..........
  04  Gondola--Plain............................  ..........  ..........
  05  Gondola--Equipped.........................  ..........  ..........
  06  Hopper--Covered...........................  ..........  ..........
  07  Hopper--Open top--General Service.........  ..........  ..........
  08  Hopper--Open top--Special Service.........  ..........  ..........
  09  Refrigerator--Mechanical..................  ..........  ..........
  10  Refrigerator--Nonmechanical...............  ..........  ..........
  11  Flat--TOFC/COFC...........................  ..........  ..........
  12  Flat--Multi-level.........................  ..........  ..........
  13  Flat--General Service.....................  ..........  ..........
  14  Flat--Other...............................  ..........  ..........

[[Page 146]]

 
  15  All other cars............................  ..........  ..........
------------------------------------------------------------------------


------------------------------------------------------------------------
                                      Total off-   Overhead    Net off-
                                        branch     movement     branch
------------------------------------------------------------------------
      Locomotive-Mile Accounts
  813  Road locomotive unit miles...  ..........  ..........  ..........
  841  Road diesel locomotive gross
   ton-miles........................  ..........  ..........  ..........
  842  Road electric locomotive
   gross ton-miles..................  ..........  ..........  ..........
    Locomotive Unit Hour Accounts
  832  Road locomotive unit hours...  ..........  ..........  ..........
  833  Road diesel locomotive unit
   hours............................  ..........  ..........  ..........
  834  Road electric locomotive unit
   hours............................  ..........  ..........  ..........
  835  Yard locomotive unit hours...  ..........  ..........  ..........
  836  Yard diesel locomotive unit
   hours............................  ..........  ..........  ..........
  837  Yard electric locomotive unit
   hours............................  ..........  ..........  ..........
     Rented or Leased Equipment
  851  Freight train car-days.......  ..........  ..........  ..........
  852  Floating equipment car-days..  ..........  ..........  ..........
  855  Locomotive days..............  ..........  ..........  ..........
             Train hours
  861  Train hours..................  ..........  ..........  ..........
------------------------------------------------------------------------


------------------------------------------------------------------------
                                      Total off-   Overhead    Net off-
                                        branch     movement     branch
------------------------------------------------------------------------
(2) Off-Branch Service Units--Car-
 Mile Accounts:
  822  Freight train loaded car-
 miles by car type:
  01  Box--General service--
   unequipped.......................  ..........  ..........  ..........
  02  Box--General service--equipped  ..........  ..........  ..........
  03  Box--Special service..........  ..........  ..........  ..........
  04  Gondola--General service......  ..........  ..........  ..........
  05  Gondola--Special service......  ..........  ..........  ..........
  06  Hopper--open--General service.  ..........  ..........  ..........
  07  Hopper--open--Special service.  ..........  ..........  ..........
  08  Hopper--covered...............  ..........  ..........  ..........
  09  Stock.........................  ..........  ..........  ..........
  10  Flat--General service.........  ..........  ..........  ..........
  11  Flat--Special service.........  ..........  ..........  ..........
  12  Flat--TOFC....................  ..........  ..........  ..........
  13  Autorack......................  ..........  ..........  ..........
  14  Refrigerator--Meat mechanical.  ..........  ..........  ..........
  15  Refrigerator--Other mechanical  ..........  ..........  ..........
  16  Refrigerator--Meat
   nonmechanical....................  ..........  ..........  ..........
  17  Refrigerator--Other
   nonmechanical....................  ..........  ..........  ..........
  18  Tank 9,999 gallons and under..  ..........  ..........  ..........
  19  Tank 10,000--18,999 gal.......  ..........  ..........  ..........
  20  Tank 19,000--21,999 gal.......  ..........  ..........  ..........
  21  Tank 22,000--27,999 gal.......  ..........  ..........  ..........
  22  Tank 28,000--31,999 gal.......  ..........  ..........  ..........
  23  Tank 32,000 and over..........  ..........  ..........  ..........
  24  All other.....................  ..........  ..........  ..........
          Ton-Mile Accounts
831  Revenue ton-miles..............  ..........  ..........  ..........
------------------------------------------------------------------------

[43 FR 1733, Jan. 11, 1978, as amended at 43 FR 28498, June 30, 1978; 44 
FR 9730, Feb. 14, 1979]
950  Text and chart of accounts.
    This section defines each account outlined in the format shown under 
section 940 of these regulations.
    (a) Attributable revenues--101 Freight. (1) This account shall 
include revenue from the transportation of freight and from transit, 
stop, and recognizing privileges, upon the basis of lawful tariff rates.
    (2) This account shall include collections in excess of tariff 
charges, except where such amounts are segregated and held subject to 
refund.
    (3) Proceeds derived from the sale of unclaimed and refused freight 
which

[[Page 147]]

has been transported in accordance with the contract of shipment shall 
be credited to this account in cases where such items can be readily 
identified. Uncollectible tariff charges on such shipments shall be 
charged to this account.
    (4) Amounts determined to be uncollectible shall be accounted for in 
accordance with the text of account 63-61-00, ``General--Uncollectible 
accounts.''

                          Items To Be Credited

    (a) Revenue upon the basis of local freight tariff rates, regardless 
of class of train in which the freight is transported.
    (b) The carrier's proportion of revenue upon the basis of through 
freight tariff rates, regardless of class of train in which the freight 
is transported.
    (c) Revenue from transportation of mail matter, and empty mail 
pouches, at freight rates.
    (d) Revenue from transportation of freight on special trains at 
rates based on weights of shipments.
    (e) Revenue on basis of classifications and freight tariffs from 
transportation of caretakers of freight shipments.
    (f) Revenue from reconsigning privileges.
    (g) Revenue from stop privileges.
    (h) Revenue from transit privileges.
    (i) Revenue upon the basis of arbitraries out of freight, rates for 
water transfers (ferriage, lighterage, and floatage).
    (j) Revenue from transportation of trailers and containers on flat 
cars in TOFC/COFC service upon the basis of all-rail line-haul freight 
tariff rates and under arrangements for motor carrier-railroad joint 
haul, and from the loading and unloading of trailers and containers on 
and from flat cars upon the basis of tariff rates and under arrangements 
for motor carrier-railroad joint haul.

                           Items To Be Charged

    (a) Amounts paid as bridge and ferry arbitraries on freight.
    (b) Amounts paid for completing a haul.
    (c) Amounts paid for elevation of freight.
    (d) Amounts paid for switching services, in connection with the 
transportation of freight, on the basis of switching tariffs, and 
allowances out of through rates, including amounts paid for switching 
empty cars in connection with a freight revenue movement.
    (e) Amounts paid for transferring freight between stations.
    (f) Arbitraries and allowances to others for lighterage and 
wharfage.
    (g) The carrier's proportion of overcharges resulting from the use 
of erroneous rates, weights, classifications or computations.
    (h) The carrier's proportion of refunds on account of errors in 
routing and billing.
    (i) The carrier's proportion of uncollected revenue on freight lost 
or destroyed in transit.
    (j) The carrier's proportion of uncollected tariff charges on 
damaged shipments for which charges neither shipper nor consignee is 
liable.
    (k) Amounts paid on basis of tariff rates for loading and unloading 
livestock.
    (l) Amounts paid to motor truck companies for hauling trailers and 
containers to and from TOFC/COFC terminals, and allowances to shippers 
who perform such service on the basis of tariff rates.
    Note A: Amounts paid for switching empty cars other than in 
connection with loaded movements shall be charged to operating expense 
account 61-32-XX, ``General--Other Expenses--Transportation, Yard, 
Freight,'' except that amounts paid for switching equipment for repairs 
shall be included in the appropriate equipment repair accounts.
    Note B: Other carriers' proportion of revenue and of uncollectible 
undercharges paid by the carrier on account of its errors in routing and 
billing shall be charged to operating expense account 61-35-76, 
``General--Other Expenses--Transportation, Administrative Support.''
    Note C: When a lessee company transports freight over the tracks of 
another carrier on the basis of a proportion of revenues under a joint 
arrangement, it shall include the entire compensation in its revenue and 
statistics, charging the appropriate joint facility expense and rental 
accounts with the amounts paid the lessor company, and the lessor 
company shall credit the corresponding accounts.
    Note D: Revenue from the transportation of caretakers of freight 
shipments, when not included as a part of the freight charges on the 
waybill covering the freight shipments, shall be credited to account 
102, ``Passenger.''
    Note E: This account shall be maintained so as to show separately 
payments and allowances for (a) terminal collection and delivery 
services when performed in connection with line-haul transportation of 
freight on the basis of freight tariff rates, further separated between 
(1) TOFC/COFC service, and (2) all other freight service; also (b) 
payments for switching services when performed in connection with line-
haul transportation of freight on the basis of switching tariffs and 
allowances out of freight rates, including the switching of empty cars 
in connection with a revenue movement, and (c) payments on basis of 
tariff rates for loading and unloading livestock.
    104 Switching. (1) This account shall include the revenue from 
switching service upon the basis of lawful tariff

[[Page 148]]

rates. To this account shall be credited the carrier's revenue upon the 
basis of tariff rates, or the carrier's allowance out of through rates, 
from the switching of cars of all kinds, loaded or empty, either locally 
at a station or within a switching district, between connecting lines, 
between local industries, or between connecting lines and local 
industries; revenue upon the basis of distinct tariff rates for 
``trapcar'' and ``ferry-car'' service and for spotting cars; also the 
revenue from interwork switching at industrial plants, and the revenue 
from ``penalty switching'' incident to the improper delivery of cars by 
other carriers.
    (2) To this account shall be charged amounts paid for switching when 
such switching service is provided for in the switching rate charged by 
the carrier.
    Note: ``Penalty switching'' charges paid by the carrier shall be 
included in expense account 61-32-XX, ``General--Other Expenses--
Transportation, Yard, Freight.''
    105 Water transfers. (1) This account shall include the revenue, 
from the transfer by water (ferriage, lighterage, and floatage), of 
passenger, freight, vehicles, and livestock, upon the basis of lawful 
local tariff rates.
    (2) This account also shall include revenue from water transfers of 
other traffic, such as the revenue from towing beyond lighterage limits 
and all other towing for which an extra charge is made; insurance of 
freight afloat when billed out at other than cost; storage of freight 
afloat; grain overage in boats; pumping performed for outside parties; 
and for other similar sources.
    (3) To this account shall be charged amounts payable to other 
companies or individuals for extra lighterage, extra towing, and for all 
other service when such payments represent revenue collected and 
credited to this account and not a directed expense.
    Note: No revenue shall be included in this account for water 
transfers of passengers or shipments upon the basis of arbitraries out 
of rates for transportation involving rail line haul.
    106 Demurrage. This account shall include the revenue from the 
detention of cars incident to loading, unloading, reconsigning, and 
stops in transit upon the basis of lawful tariffs for demurrage. This 
account shall also include the revenue from the detention of trailers 
and containers used in TOFC/COFC service, incident to loading and 
unloading, upon the basis of tariff rates.
    Note: This account shall be maintained so as to reflect separately 
(1) revenue from detention of cars, and (2) revenue from detention of 
trailers and containers used in TOFC/COFC service.
    110 Incidental. This account is designed to show the amounts which 
the carrier becomes entitled to receive from services rendered 
incidentally with rail-line and water-line transportation; for the use 
of facilities of which the expenses for operation and maintenance are 
not separable from railway expenses and from incidental sources not 
provided for elsewhere. Among the items included in this account are 
revenues derived from (1) hotels and restaurants, (2) operations 
conducted at stations and on trains by individual or companies other 
than railway companies, (3) storage, (4) the sale of electric power, (5) 
renting property operated and maintained in connection with the property 
used in the carrier's transportation operations and from railway 
operations not provided for elsewhere.
    121 Joint facility, credit. This account shall include the carrier's 
proportion of revenue collected by others in connection with the 
operation of joint tracks, yards, terminals, and other facilities, 
including revenue from hotels, restaurants, grain elevators, sale of 
power, and other miscellaneous operations.
    Note A: The purpose of this account is to show the amounts of 
revenue from the operation of joint tracks, yards, terminals and other 
facilities operated by other companies, which under existing contracts 
or agreements are credited by the operating company to the tenant 
companies which participate therein. The bill rendered by any creditor 
company against a debtor company for the latter's proportion of the 
expense of maintenance and operation of joint facilities, which includes 
also a credit covering a proportion of the revenue to be paid over, 
shall show the distribution of the credit for such proportion of the 
revenue separately from the distribution of the expense of operation.
    Note B: No credits shall be made to this account representing 
amounts creditable by the operating company to primary accounts 101-103, 
105, and 110.

[[Page 149]]

    122 Joint facility, debit. This account shall include that 
proportion of revenue from the operation of joint tracks, yards, 
terminals, and other facilities, which is creditable to other companies, 
including revenue from hotels, restaurants, grain elevators, sale of 
power, and other miscellaneous operations.
    Note A: The purpose of this account is to show the amount of revenue 
from operation of a terminal company or other carrier which, under the 
terms of existing contracts or agreements covering the joint use of 
tracks, yards, and other facilities, is credited to other carriers that 
participate in the benefits from such joint use. The bill rendered by a 
creditor company against a debtor company for the latter's proportion of 
expense of maintaining and operating joint facilities, which includes a 
credit covering the debtor company's proportion of the revenues from 
operation of such joint facilities, shall indicate separately the proper 
distribution of both the revenues and the expenses included in the bill, 
and such distribution shall be adhered to the debtor.
    Note B: No debits shall be made to this account representing amounts 
creditable by the operating company to primary accounts 101-103, 105, 
and 110.

                          Other Income Accounts

    506 Revenues from property used in other than carrier operations. 
This account shall include the total revenues derived from property used 
in other than carrier operations, the cost of which is includible in 
balance-sheet account 737, ``Property used in other than carrier 
operations.''
    510 Miscellaneous rent income. (1) This account shall include such 
rents of property owned and controlled by the accounting carrier as are 
not provided for in the foregoing accounts.
    (2) This account shall be charged with the cost of maintenance of 
the property rented, also specific incidental expenses in connection 
with such property, such as the cost of negotiating contracts, 
advertising for tenants, fees paid conveyancers, collectors' 
commissions, and analogous items.
    Note A: If property the rent of which is chargeable to account 543--
``Miscellaneous rents,'' is sublet by the accounting company, the rent 
receivable therefore shall be credited to this account.
    Note B: Taxes on property the rent of which is creditable to this 
account shall be charged to account 553--``Taxes on property used in 
other than carrier operations.''
    Note C: The rent from property carried in balance-sheet account 
737--``Property used in other than carrier operations,'' shall not be 
included in this account, but in account 506--``Revenues from property 
used in other than carrier operations.''
    Note D: Rent and other income from real estate acquired for new 
lines or for additions and betterments shall be credited to the 
appropriate road and equipment accounts until the completion or coming 
into service of the property.
    519 Miscellaneous income. (1) This account shall include all items, 
not provided for elsewhere, properly creditable to income accounts 
during the current year. Among the items which shall be included in this 
account are:
    (i) Cancellation of balance sheet accounts representing unclaimed 
wages and vouchered accounts written off because of carrier's inability 
to locate the creditor.
    (ii) Profit from sale of land used for transportation purposes, of 
noncarrier property and of securities acquired for investment purposes.
    (2) Gains for extinguishment of debt shall be aggregated and, if 
material, credited to account 570 ``Extraordinary Items,'' upon approval 
by the Commission; however, gains from extinguishment of debt (excluding 
debt maturing serially), which is made to satisfy sinking fund 
requirements, shall be recorded in this account regardless of amount.
    599 Subsidy payments from preexisting contracts. This account shall 
include all payments made to the operating carrier of a subsidized line 
that (1) existed prior to the commencement of operations under a subsidy 
operating agreement and (2) would cease if freight service on the line 
were discontinued.
    (b) On-branch avoidable cost.
    (1) Actual and apportioned expense accounts.

                                Personnel
Control....................................................     10-00-00
 

    This account may be used as a control account for all accounts in 
the PERSONNEL Series: Salaries and Wages; Fringe Benefits Not Included 
in Compensation.
    Salaries and Wages--Control. This control account includes the 
compensation payable to employees for services performed. It includes 
amounts payable in connection with profit sharing and stock option plans 
that

[[Page 150]]

are part of employee compensation. This control account also includes 
amounts of compensation payable to employees for paid time off as a 
fringe benefit: vacation pay, holiday pay, sick pay, and other payments 
considered direct compensation for time not worked. Amounts of labor 
billed by contractors, other companies, and joint facilities, are not 
considered salaries and wages of the carrier company and are not to be 
included in this account group. Its components shall be distributed to 
the following accounts in accordance with instruction 1-14 of Part 1201, 
Subpart A:

Salaries and wages--way and structures--running: Freight...     11-11-XX
 

    This account includes the compensation payable to all repair and 
maintenance employees and others who are associated with the repair and 
maintenance of the carrier's roadway and track on the line of road and 
outside of classification yards. Compensation payable to officers and 
technical and clerical employees shall only be assigned to Way and 
Structures--Other. This account shall be subdivided by the following 
functions:

                   Repair and maintenance
 
Roadway....................................................     11-11-10
Tunnels and subways........................................     11-11-11
Bridges and culverts.......................................     11-11-12
Track laying and surfacing.................................     11-11-17
Signals and interlockers...................................     11-11-19
Highway grade crossings....................................     11-11-22
Dismantling retired property...............................     11-11-39
Road property and equipment damaged........................     11-11-48
Other--other...............................................     11-11-99
Salaries and wages--way and structures--switching: Freight.     11-12-XX
 

    This account includes the compensation payable to all repair and 
maintenance employees and others who are associated with the repair and 
maintenance of the carrier's roadway and track within classification 
yards and stations. Compensation payable to officers and technical and 
clerical employees shall be assigned to Way and Structures--Other. This 
account shall be subdivided by the following functions:

                   Repair and maintenance
 
Roadway....................................................     11-12-10
Tunnels and subways........................................     11-12-11
Bridges and culverts.......................................     11-12-12
Track laying and surfacing.................................     11-12-17
Signals and interlockers...................................     11-12-19
Highway grade crossings....................................     11-12-22
Dismantling retired property...............................     11-12-39
Road property and equipment damaged........................     11-12-48
Other--other...............................................     11-12-99
Salaries and wages--way and structures--other: Freight.....     11-13-XX
 

    This account includes the compensation payable to all repair and 
maintenance employees and others who are associated with the repair and 
maintenance of the carrier's structures other than roadway and track. 
Each administration account (functions 02-06) includes the compensation 
payable to all officers and technical and clerical employees associated 
with the Way and Structures Activity. This account shall be subdivided 
by the following functions:

                       Administration
 
Track......................................................     11-13-02
Bridges and buildings......................................     11-13-03
Signals....................................................     11-13-04
Communications.............................................     11-13-05
Other......................................................     11-13-06
 
                   Repair and maintenance
 
Communication systems......................................     11-13-20
Electric power systems.....................................     11-13-21
Station and office buildings...............................     11-13-23
Shop buildings--locomotives................................     11-13-24
Shop buildings--freight cars...............................     11-13-25
Shop buildings--other......................................     11-13-26
Locomotive servicing facilities............................     11-13-27
Miscellaneous buildings and structures.....................     11-13-28
Coal terminals.............................................     11-13-29
Ore terminals..............................................     11-13-30
TOFC/COFC terminals........................................     11-13-31
Other marine terminals.....................................     11-13-32
Motor vehicle loading and distribution facilities..........     11-13-33
Facilities for other specialized services operations.......     11-13-35
Roadway machines...........................................     11-13-36
Small tools and supplies...................................     11-13-37
Snow removal...............................................     11-13-38
Dismantling retired property...............................     11-13-39
Road property and equipment damaged........................     11-13-48
Other--other...............................................     11-13-99
Salaries and wages--equipment--locomotives: Freight........     11-21-XX
 

    This account includes the compensation payable to all officers and 
technical and clerical employees, repair and maintenance employees, and 
others who are associated with the repair and maintenance of 
locomotives, whether owned by the carrier or by others. This account 
shall be subdivided by the following functions:

Administration--general....................................     11-21-01
 
                   Repair and maintenance
 
Dismantling retired property...............................     11-21-39
Shop machinery.............................................     11-21-40
Locomotives................................................     11-21-41
Road property and equipment damaged........................     11-21-48
Other--other...............................................     11-21-99
Salaries and Wages--Equipment--Freight Cars: Freight.......     11-22-XX
 

    This account includes the compensation payable to all officers, 
technical and clerical employees, repair and maintenance employees, and 
others, who are associated with the repair and maintenance of freight 
cars, whether owned by the carrier or by others. This account shall be 
subdivided by the following functions:

Administration--general....................................     11-22-01
 
                   Repair and maintenance
 
Dismantling retired property...............................     11-22-39
Shop machinery.............................................     11-22-40
Freight cars...............................................     11-22-42
Road property and equipment damaged........................     11-22-48
Other--other...............................................     11-22-99
Salaries and wages--equipment--other equipment: Freight....     11-23-XX
 


[[Page 151]]

    This account includes the compensation payable to all officers, 
technical and clerical employees, repair and maintenance employees, and 
others, who are associated with the repair and maintenance of equipment 
other than locomotives and freight cars, whether owned by the carrier or 
by others. This account shall be subdivided by the following functions:

Administration--general....................................     11-23-01
 
                   Repair and maintenance
 
Dismantling retired property...............................     11-23-39
Shop machinery.............................................     11-23-40
Trucks, trailers, containers in revenue service............     11-23-43
Floating equipment--revenue service........................     11-23-44
Passenger and other revenue equipment......................     11-23-45
Computers and data processing equipment....................     11-23-46
Work and other non-revenue equipment.......................     11-23-47
Road property and equipment damaged........................     11-23-48
Other--other...............................................     11-23-99
Salaries and wages--transportation--train: Freight.........     11-31-XX
 

    This account includes the compensation payable to all officers, 
technical and clerical employees, engine and train crews, and other 
operational employees, who are associated with the dispatching and 
operation of freight trains over the roadway and outside of 
classification yards. This account shall be subdivided by the following 
functions:

Administration--general....................................     11-31-01
 
                         Operations
 
Engine crews...............................................     11-31-56
Train crews................................................     11-31-57
Dispatching trains.........................................     11-31-58
Operating switches, signals, interlockers, retarders, humps     11-31-59
Operating drawbridges......................................     11-31-60
Highway crossing protection................................     11-31-61
Train inspection and lubrication...........................     11-31-62
Clearing wrecks............................................     11-31-63
Locomotive fuel............................................     11-31-67
Electric power purchased/produced for motive power.........     11-31-68
Servicing locomotives......................................     11-31-69
Other--other...............................................     11-31-99
Salaries and wages--transportation--yard: Freight..........     11-32-XX
 

    This account includes the compensation payable to all officers, 
technical and clerical employees, engine and train crews, and other 
operational employees, who are associated with the movement of freight 
cars within classification yards and in terminal switching and transfer 
service. This account shall be subdivided by the following functions:

Administration--general....................................     11-32-01
 
                         Operations
 
Operating switches, signals, interlockers, retarders, humps     11-32-59
Clearing wrecks............................................     11-32-63
Switch crews...............................................     11-32-64
Controlling operations.....................................     11-32-65
Yard and terminal clerical.................................     11-32-66
Locomotive fuel............................................     11-32-67
Electrical power purchased/produced for motive power.......     11-32-68
Servicing locomotives......................................     11-32-69
Other--other...............................................     11-32-99
Salaries and wages--transportation--train and yard common:
 Freight...................................................     11-33-XX
 

    This account includes the compensation payable to all officers, 
technical and clerical employees, engine and train crews, and other 
operational employees performing functions incurred on behalf of both 
train and yard operations. This account shall be subdivided by the 
following functions:

Operations.................................................  ...........
Cleaning car interiors.....................................     11-33-70
Adjusting and transferring loads...........................     11-33-71
Car loading devices and grain doors........................     11-33-72
Salaries and wages--transportation--specialized services:
 Freight...................................................     11-34-XX
 

    This account includes the compensation payable to all officers, 
technical and clerical employees, engine and train crews, and other 
operational employees who are associated with operating services which 
are specialized in nature and in cost characteristics. The specialized 
services designated by the Board appear within the definition of 
specialized services. This account shall be subdivided by the following 
functions:

Administration--general....................................     11-34-01
 
                         Operations
 
Pickup and delivery, marine line haul, and rail substitute
 service...................................................     11-34-73
Loading, unloading, and local marine.......................     11-34-74
Protective service.........................................     11-34-75
Other--other...............................................     11-34-99
Salaries and wages--transportation--administrative support:
 Freight...................................................     11-35-XX
 

    This account includes the compensation payable to all officers, 
technical and clerical employees, engine and train crews, and other 
operational employees, who are associated with providing direct 
administrative support for the Transportation Activity. For further 
clarification refer to the definition of the Administrative Support 
Operations Subactivity contained in Part 1201, Subpart A. This account 
shall be subdivided by the following functions:

Administration--general....................................     11-35-01
 
                         Operations
 
Clerical and accounting employees..........................     11-35-76
Communication systems operations...........................     11-35-77
Loss and damage claims processing..........................     11-35-78
Other--other...............................................     11-35-99
Salaries and wages--general and administrative: Freight....     11-61-XX
 

    This account includes the compensation payable to all employees who 
are associated with overall administration or other general support for 
carrier operations. Overall administration includes executive, legal, 
financial, treasury, accounting, budgeting, taxation, corporate 
planning, costing, marketing, advertising, traffic, corporate secretary, 
public relations, real estate, insurance administration, personnel 
administration, pension plan administration, general purchasing, labor 
relations, internal auditing, industrial engineering, and regulatory 
reporting.

[[Page 152]]

For further clarification refer to the definition of the General and 
Administrative Activity contained in Part 1201, Subpart A. This account 
shall be subdivided by the following functions:

Administration--general....................................     11-61-01
 
                          General
 
Accounting, auditing, finance..............................     11-61-86
Management services and data processing....................     11-61-87
Marketing..................................................     11-61-88
Sales......................................................     11-61-89
Industrial development.....................................     11-61-90
Personnel and labor relations..............................     11-61-91
Legal and secretarial......................................     11-61-92
Public relations and advertising...........................     11-61-93
Research and development...................................     11-61-94
Other--other...............................................     11-61-99
Fringe benefits not included in compensation--control......     12-00-00
 

    This control account includes amounts payable to others, or other 
costs charged to expense, for employee benefits which are not considered 
part of direct compensation. These benefits include the carrier portions 
of Railroad Retirement contributions, pension expense, unemployment 
taxes, dental plans, health plans, hospitalization insurance, life 
insurance, subsidies for employee lunchrooms, company entertainment 
facilities for personal use, and other benefits to employees that are 
not includable in direct compensation. They exclude travel expense on 
company business, casualties, workmen's compensation, as well as dues, 
memberships, and similar items when the direct beneficiary is clearly 
the company rather than the employee

Fringe benefits not included in compensation--way and
 structures--running: Freight..............................     12-11-00
 

    This account includes amounts payable to others, or other costs 
charged to expense, for employee benefits which are not considered part 
of direct compensation for employees who are associated with the repair 
and maintenance of the carrier's roadway and track on the line of road 
and outside of classification yards.

Fringe benefits not included in compensation--way and
 structures--switching: Freight............................     12-12-00
 

    This account includes amounts payable to others, or other costs 
charged to expense, for employee benefits which are not considered part 
of direct compensation for employees who are associated with repair and 
maintenance of the carrier's roadway and track within classification 
yards and stations.

Fringe benefits not included in compensation--way and
 structures--other: Freight................................     12-13-00
 

    This account includes amounts payable to others, or other costs 
charged to expense, for employee benefits which are not considered part 
of direct compensation for employees who are associated with the repair 
and maintenance of the carrier's structures other than roadway and 
track, and who are associated with the Administration of the Way and 
Structures Activity.

Fringe benefits not included in compensation--equipment--
 locomotives: Freight......................................     12-21-00
 

    This account includes amounts payable to others, or other costs 
charged to expense, for employee benefits which are not considered part 
of direct compensation for employees who are associated with the repair 
and maintenance of locomotives, whether owned by the carrier or by 
others.

Fringe benefits not included in compensation--equipment--
 freight cars: Freight.....................................     12-22-00
 

    This account includes amounts payable to others, or other costs 
charged to expense, for employee benefits which are not considered part 
of direct compensation for employees who are associated with the repair 
and maintenance of freight cars, whether owned by the carrier or by 
others.

Fringe benefits not included in compensation--equipment--
 other equipment:..........................................     12-23-00
 

    This account includes the amounts payable to others, or other costs 
charged to expense, for employee benefits which are not considered part 
of direct compensation for employees who are associated with the repair 
and maintenance of equipment other than locomotives and freight cars, 
whether owned by the carrier or by others.

Fringe benefits not included in compensation--
 transportation--train: Freight............................     12-31-00
 

    This account includes the amounts payable to others, or other costs 
charged to expense, for employee benefits which are not considered part 
of direct compensation for employees who are associated with the 
dispatching and operating of freight trains over the roadway and outside 
of classification yards.

Fringe benefits not included in compensation--
 transportation--yard: Freight.............................     12-32-00
 

    This account includes the amounts payable to others, or other costs 
charged to expense, for employee benefits which are not considered part 
of direct compensation for employees who are associated with the 
movement of freight cars within classification yards and in terminal 
switching and transfer service.

Fringe benefits not included in compensation--
 transportation--train and yard Common: Freight............     12-33-00
 

    This account includes the amounts payable to others, or other costs 
charged to expense, for employee benefits which are not considered part 
of direct compensation for employees performing functions incurred on 
behalf of both train and yard operations.

Fringe benefits not included in compensation--
 transportation--specialized services: Freight.............     12-34-00
 

    This account includes the amounts payable to others, or other costs 
charged to expense,

[[Page 153]]

for employee benefits which are not considered part of direct 
compensation for employees who are associated with operating services 
which are specialized in nature and in cost characteristics. The 
specialized services designated by the Commission appear within the 
definition of specialized services.

Fringe benefits not included in compensation--
 transportation--administrative support: Freight...........     12-35-00
 

    This account includes the amounts payable to others, or other costs 
charged to expense, for employee benefits which are not considered part 
of direct compensation for employees who are associated with providing 
direct administrative support for the Transportation Activity. For 
further clarification refer to the definition of the Administrative 
Support Operations Subactivity contained in Part 1201, Subpart A.

Fringe benefits not included in compensation--general and
 administrative: Freight...................................     12-61-00
 

    This account includes the amounts payable to others, or other costs 
charged to expense, for employee benefits which are not considered part 
of direct compensation for employees who provide overall administration 
or other general support for carrier operations. Overall administration 
includes executive, legal, financial, treasury, accounting, budgeting, 
taxation, corporate planning, costing, marketing, advertising, traffic, 
corporate secretary, public relations, real estate, insurance 
administration, personnel administration, pension plan administration, 
general purchasing, labor relations, internal auditing, industrial 
engineering, and regulatory reporting. For further clarification refer 
to the definition of the General and Administrative Activity contained 
in Part 1201, Subpart A.

                                Materiel
Control....................................................     20-00-00
 

    This account may be used as a control account for the MATERIEL 
series: Materials, Tools, Supplies, Fuels, Lubricants.

Materials, tools, supplies, fuels, lubricants--Control.....     21-00-00
 

    This account group includes the cost of items installed or 
commodities consumed which are charged to expense in connection with 
carrier operations. This account includes charges to expense for all 
materials, small tools, supplies, fuels, lubricants, purchased standard 
stationery and forms, freight-in on materials and supplies, and similar 
items. This account excludes purchased services such as utilities, 
communications, postage and other items of similar nature.

Materials, tools, supplies, fuels, lubricants--way and
 structures--Running: Freight..............................     21-11-XX
 

    This account includes the cost of items installed or commodities 
consumed which are charged to expense, where such items are consumed in 
the performance or support of the repair and maintenance of the 
carrier's roadway and track on the line of the road and outside of 
classification yards. This account includes charges to expense for all 
materials, small tools, supplies, fuels, lubricants, purchased standard 
stationery and forms, freight-in on materials, and supplies, and similar 
items. Its components shall be distributed to the following functions in 
accordance with instruction 1-8 of Part 1201, Subpart A:

                   Repair and maintenance
 
Roadway....................................................     21-11-10
Tunnels and subways........................................     21-11-11
Bridges and culverts.......................................     21-11-12
Ties.......................................................     21-11-13
Rails......................................................     21-11-14
Other track material.......................................     21-11-15
Ballast....................................................     21-11-16
Track laying and surfacing.................................     21-11-17
Signals and interlockers...................................     21-11-19
Highway grade crossings....................................     21-11-22
Dismantling retired property...............................     21-11-39
Road property and equipment damaged........................     21-11-48
Other--other...............................................     21-11-99
Materials, tools, supplies, fuels, lubricants--way and
 structures--switching: Freight............................     21-12-XX
 

    This account includes the cost of items installed or commodities 
consumed which are charged to expense, where such items are consumed in 
the performance or support of the repair and maintenance of the 
carrier's roadway and track within classification yards and stations. 
This account includes charges to expense for all materials, small tools, 
supplies, fuels, lubricants, purchased standard stationery and forms, 
freight-in on materials and supplies, and similar items. Its components 
shall be distributed to the following functions in accordance with 
instruction 1-8 of Part 1201, Subpart A:

                   Repair and maintenance
 
Roadway....................................................     21-12-10
Tunnels and subways........................................     21-12-11
Bridges and culverts.......................................     21-12-12
Ties.......................................................     21-12-13
Rails......................................................     21-12-14
Other track material.......................................     21-12-15
Ballast....................................................     21-12-16
Track laying and surfacing.................................     21-12-17
Signals and interlockers...................................     21-12-19
Highway grade crossings....................................     21-12-22
Dismantling retired property...............................     21-12-39
Road property and equipment damaged........................     21-12-48
Other--other...............................................     21-12-99
Materials, tools, supplies, fuels, lubricants--way and
 structures--other: Freight................................     21-13-XX
 

    This account includes the cost of items installed or commodities 
consumed which are charged to expense, where such items are consumed in 
the performance or support of the repair and maintenance of the 
carrier's structures not provided for in running or switching. This 
account includes charges to

[[Page 154]]

expense for all materials, small tools, supplies, fuels, lubricants, 
purchased standard stationery and forms, freight-in on materials and 
supplies, and similar items. Its components shall be distributed to the 
following functions in accordance with instruction 1-8 of Part 1201, 
Subpart A:

                       Administration
 
Track......................................................     21-13-02
Bridges and buildings......................................     21-13-03
Signals....................................................     21-13-04
Communications.............................................     21-13-05
Other......................................................     21-13-06
 
                   Repair and maintenance
 
Communication systems......................................     21-13-20
Electric power systems.....................................     21-13-21
Station and office buildings...............................     21-13-23
Shop buildings--locomotives................................     21-13-24
Shop buildings--freight cars...............................     21-13-25
Shop buildings--other equipment............................     21-13-26
Locomotive servicing facilities............................     21-13-27
Miscellaneous buildings and structures.....................     21-13-28
Coal terminals.............................................     21-13-29
Ore terminals..............................................     21-13-30
TOFC/COFC terminals........................................     21-13-31
Other marine terminals.....................................     21-13-32
Motor vehicle loading and distribution facilities..........     21-13-33
Facilities for other specialized services operations.......     21-13-35
Roadway machines...........................................     21-13-36
Small tools and supplies...................................     21-13-37
Snow removal...............................................     21-13-38
Dismantling retired property...............................     21-13-39
Road property and equipment damaged........................     21-13-48
Other--other...............................................     21-13-99
Materials, tools, supplies, fuels, lubricants--equipment--
 locomotives: Freight......................................     21-21-XX
 

    This account includes the cost of items installed or commodities 
consumed which are charged to expense, where such items are consumed in 
the performance or support of the repair and maintenance of locomotives, 
whether owned by the carrier or by others. This account includes charges 
to expense for all materials, small tools, supplies, fuels, lubricants, 
purchased standard stationery and forms, freight-in on materials and 
supplies, and similar items. Its components shall be distributed to the 
following functions in accordance with instruction 1-8 of Part 1201, 
Subpart A:

Administration--General....................................     21-21-01
 
                   Repair and maintenance
 
Dismantling retired property...............................     21-21-39
Machinery..................................................     21-21-40
Locomotives................................................     21-21-41
Road property and equipment................................     21-21-48
Other--other...............................................     21-21-99
Materials, tools, supplies, fuels, lubricants--equipment--
 freight cars: Freight.....................................     21-22-XX
 

    This account includes the cost of items installed or commodities 
consumed which are charged to expense, where such items are consumed in 
the performance or support of the repair and maintenance of freight 
cars, whether owned by the carrier or by others. This account includes 
charges to expense for all materials, small tools, supplies, fuels, 
lubricants, purchased standard stationery and forms, freight-in on 
materials and supplies, and similar items. Its components shall be 
distributed to the following functions in accordance with instruction 1-
8 of Part 1201, Subpart A:

Administration--general....................................     21-22-01
 
                   Repair and maintenance
 
Dismantling retired property...............................     21-22-39
Machinery..................................................     21-22-40
Freight cars...............................................     21-22-42
Road property and equipment damaged........................     21-22-48
Other--other...............................................     21-22-99
Materials, tools, supplies, fuels, lubricants--equipment--
 other equipment: Freight..................................     21-23-XX
 

    This account includes the cost of items installed or commodities 
consumed which are charged to expense, where such items are consumed in 
the performance or support of the repair and maintenance of equipment 
other than locomotives and freight cars, whether owned by the carrier or 
by others. This account includes charges to expense for all materials, 
small tools, supplies, fuels, lubricants, purchased standard stationery 
and forms, freight-in on materials and supplies, and similar items. Its 
components shall be distributed to the following functions in accordance 
with instruction 1-8 of Part 1201, Subpart A:

Administration--general....................................     21-23-01
 
                   Repair and maintenance
 
Dismantling retired property...............................     21-23-39
Machinery..................................................     21-23-40
Trucks, trailers, containers in revenue service............     21-23-43
Floating equipment--revenue service........................     21-23-44
Passenger and other revenue equipment......................     21-23-45
Computers and data processing equipment....................     21-23-46
Work and other nonrevenue equipment........................     21-23-47
Road property and equipment damaged........................     21-23-48
Other--other...............................................     21-23-99
Materials, tools, supplies, fuels, lubricants--
 transportation--train: Freight............................     21-31-XX
 

    This account includes the cost of items installed or commodities 
consumed which are charged to expense, where such items are consumed in 
association with the dispatching and operation of freight trains over 
the roadway and outside of classification yards. This account includes 
charges to expense for all materials, small tools, supplies, fuels, 
lubricants, purchased standard stationery and forms, freight-in on 
materials and supplies, and similar items. Its components shall be 
distributed to the following functions in accordance with instruction 1-
8 of Part 1201, Subpart A:

Administration--general....................................     21-31-01
 
                         Operations
 
Engine crews...............................................     21-31-56
Train crews................................................     21-31-57
Dispatching trains.........................................     21-31-58
Operating switches, signals, interlockers, retarders, humps     21-31-59
Operating drawbridges......................................     21-31-60
Highway crossing protection................................     21-31-61
Train inspection and lubrication...........................     21-31-62
Clearing wrecks............................................     21-31-63
Locomotive fuels...........................................     21-31-67

[[Page 155]]

 
Electric power purchased/produced for motive power.........     21-31-68
Servicing locomotives......................................     21-31-69
Other--other...............................................     21-31-99
Materials, tools, supplies, fuels, lubricants--
 transportation--yard: Freight.............................     21-32-XX
 

    This account includes the cost of items installed or commodities 
consumed which are charged to expense, where such items are consumed in 
association with the movement of freight cars within classification 
yards and in terminal switching and transfer service. This account 
includes charges to expense for all materials, small tools, supplies, 
fuels, lubricants, purchased standard statonery and forms, freight-in on 
materials and supplies, and similar items. Its components shall be 
distributed to the following functions in accordance with instruction 1-
8 of Part 1201, Subpart A:

Administration--general....................................     21-32-01
 
                         Operations
 
Operating switches, signals, interlockers, retarders, humps     21-32-59
Clearing wrecks............................................     21-32-63
Switch crews...............................................     21-32-64
Controlling operations.....................................     21-32-65
Yard and terminal clerical.................................     21-32-66
Locomotive fuel............................................     21-32-67
Electric power purchased/produced for motive power.........     21-32-68
Servicing locomotives......................................     21-32-69
Other--other...............................................     21-32-99
Materials, tools, supplies, fuels, lubricants--
 transportation--train and yard common: Freight............     21-33-XX
 

    This account includes the cost of items installed or commodities 
consumed which are charged to expense, where such items are consumed on 
behalf of both train and yard operations. This account includes charges 
to expense for all materials, small tools, supplies, fuels, lubricants, 
purchased standard stationery and forms, freight-in on materials and 
supplies, and similar items. Its components shall be distributed to the 
following functions in accordance with instruction 1-8 of Part 1201, 
Subpart A:

                         Operations
 
Cleaning car interiors.....................................     21-33-70
Adjusting, transferring loads..............................     21-33-71
Car loading devices and grain doors........................     21-33-72
Materials, tools, supplies, fuels, lubricants--
 transportation--specialized services: Freight.............     21-34-XX
 

    This account includes the cost of items installed or commodities 
consumed which are charged to expense, where such items are consumed in 
operating services which are specialized in nature and in cost 
characteristics. The specialized services designated by the Commission 
appear within the definition of specialized services. This account shall 
be subdivided by the following functions:

Administration--general....................................     21-34-01
 
                         Operations
 
Pick up and delivery, marine line haul, and rail substitute
 service...................................................     21-34-73
Loading, unloading, and local marine.......................     21-34-74
Protective services........................................     21-34-75
Other--other...............................................     21-34-99
Materials, tools, supplies, fuels, lubricants--
 transportation--administra- tive support: Freight.........     21-35-XX
 

    This account includes the cost of items installed or commodities 
consumed which are charged to expense, where such items are consumed in 
association with providing direct administrative support for the 
Transportation Activity. For further clarification refer to the 
definition of the Administrative Support Operations Subactivity 
contained in Part 1201, Subpart A. This account shall be subdivided by 
the following functions.

Administration--general....................................     21-35-01
 
                         Operations
 
Clerks, accounting employees...............................     21-35-76
Communication systems operations...........................     21-35-77
Loss and damage claims processing..........................     21-35-78
Other--other...............................................     21-35-99
Materials, tools, supplies, fuels, lubricants--general and
 administrative: Freight...................................     21-61-XX
 

    This account includes the cost of items installed or commodities 
consumed which are charged to expense, where such items are consumed in 
providing overall administration or other general support for carrier 
operations. For further clarification refer to the definition of the 
General and Administrative Activity contained in Part 1201, Subpart A. 
This account shall be subdivided by the following functions:

Administration--general....................................     21-61-01
 
                          General
 
Accounting, auditing, finance..............................     21-61-86
Management services and data processing....................     21-61-87
Marketing..................................................     21-61-88
Sales......................................................     21-61-89
Industrial development.....................................     21-61-90
Personnel and labor relations..............................     21-61-91
Legal and secretarial......................................     21-61-92
Public relations and advertising...........................     21-61-93
Research and development...................................     21-61-94
Other--other...............................................     21-61-99
 


                           Purchased Services
Control....................................................     30-00-00
 

    This account may be used as a control account for all accounts in 
the PURCHASED SERVICES series:

Lease rentals--Credit......................................  ...........
Joint facility rent--Debit.................................  ...........
Joint facility rent--Credit................................  ...........
Other rents--Debit.........................................  ...........
Other rents--Credit........................................  ...........
Joint facility--Debit......................................  ...........
Joint facility--Credit.....................................  ...........
Repairs billed by others--Debit............................  ...........
Repairs billed to others--Credit...........................  ...........
Other purchased services...................................  ...........
Lease rentals--debit--control..............................     31-00-00
 

    This control account includes the rentals of road property and 
equipment with terms of 30 days or more. This account excludes

[[Page 156]]

joint facility and joint trackage rents, insurance and maintenance 
elements of lease payments, and all elements of capital leases as 
defined in FASB Statement No. 13. The components of this natural expense 
will be distributed to the following accounts in accordance with 
instruction 1-8 of Part 1201, Subpart A:

Lease rentals--debit--way and structures--running: freight.     31-11-00
Lease rentals--debit--way and structures--switching:
 freight...................................................     31-12-00
Lease rentals--debit--way and structures--other: freight...     31-13-00
Lease rentals--debit--equipment--locomotives: freight......     31-21-00
Lease rentals--debit--equipment--freight cars: freight.....     31-22-00
Lease rentals--debit--equipment--other equipment: freight..     31-23-00
Lease rentals--credit--control.............................     32-00-00
 

    This control account includes the rentals of owned property and 
equipment or subleases of leased road property and equipment with terms 
of from 30 days to one year. Longer term leases are indicative of a non-
carrier operation and all revenues and expenses related to such property 
and equipment should be classified accordingly and excluded from 
railroad operations. This account excludes joint facilities and joint 
trackage, capital leases, and portions of lease receipts covering 
maintenance and insurance. The components of this natural expense 
account will be distributed to the following accounts in accordance with 
instruction 1-8 of Part 1201, Subpart A:

Lease rentals--credit--way and structures--running: freight     32-11-00
Lease rentals--credit--way and structures--switching:
 freight...................................................     32-12-00
Lease rentals--credit--way and structures--other: freight..     32-13-00
Lease rentals--credit--equipment--locomotives: freight.....     32-21-00
Lease rentals--credit--equipment--freight cars: freight....     32-22-00
Lease rentals--credit--equipment--other equipment: freight.     32-23-00
Joint facility rents--debit--control.......................     33-00-00
 

    This control account includes amounts payable accrued as rent for 
equipment, tracks, yards, terminals, and other facilities owned or 
controlled by other carriers, companies, or individuals, and in the 
joint use of which the accounting company participates. Amounts paid or 
payable by the accounting company in reimbursement for taxes on property 
jointly used shall be charged to this account.
    Note: The cost of maintenance, operation, or administration of joint 
facilities, chargeable to the accounting company, shall be charged to 
the various joint facility accounts (37-XX-00). When the compensation 
for the use of joint facilities is a fixed amount or is based upon a 
charge per ton, car, or other unit, it shall be fairly apportioned 
between this account and Joint Facility--Dr. (37-XX-00). This 
apportionment shall be made by the operating company, and shall be 
followed by the accounting company. The components of this natural 
expense consist of the following accounts:

Joint facility rents--debit--way and structures--running:
 Freight...................................................     33-11-00
Joint facility rents--debit--way and structures--switching:
 Freight...................................................     33-12-00
Joint facility rents--debit--way and structures--other:
 Freight...................................................     33-13-00
Joint facility rents--debit--equipment--locomotives:
 Freight...................................................     33-21-00
Joint facility rents--debit--equiment--freight cars:
 Freight...................................................     33-22-00
Joint facility rents--debit--equipment--other equipment:
 Freight...................................................     33-23-00
Joint facility rents--credit--control......................     34-00-00
 

    This control account includes amounts receivable accrued for rent of 
equipment, tracks, yards, terminals and other facilities owned or 
controlled by the accounting company and used jointly with other 
companies or individuals. Amounts receivable from other companies in 
reimbursement for taxes on property jointly used shall be credited to 
this account.
    Note: The portion of the cost of maintenance, operation, or 
administration of joint facilities recoverable from others shall be 
credited to the various joint facility accounts (38-XX-00). When the 
compensation for the use of joint facilities is a fixed amount or is 
based upon a charge per ton, car, or other unit, it shall be fairly 
apportioned by the creditor between this account and Joint Facility--
credit (28-XX-00).

Joint facility rents--credit--way and structures--running:
 Freight...................................................     34-11-00
Joint facility rents--credit--way and structures--
 switching: Freight........................................     34-12-00
Joint facility rents--credit--way and structures--other:
 Freight...................................................     34-13-00
Joint facility rents--credit--equipment--locomotives:
 Freight...................................................     34-21-00
Joint facility rents--credit--equipment--freight cars:
 Freight...................................................     34-22-00
Joint facility rents--credit--equipment--other equipment:
 Freight...................................................     34-23-00
Other rents--debit--control................................     35-00-00
 

    This account includes the rents with terms of less than 30 days 
which are not renewed. This account includes all time and mileage 
payments for interchange locomotive, freight car, and other revenue 
equipment hire. The components of this account will be distributed to 
the following accounts in accordance with instruction 1-8 of Part 1201, 
Subpart A:

Other rents--debit--way and structures--running: Freight:
 Freight...................................................     35-11-00
Other rents--debit--way and structures--switching: Freight.     35-12-00
Other rents--debit--way and structures--other: Freight.....     35-13-00
Other rents--debit--equipment--locomotives: Freight........     35-21-00
Other rents--debit--equipment--freight cars: Freight.......     35-22-00

[[Page 157]]

 
Other rents--debit--equipment--other equipment: Freight....     35-23-00
Other rents--credit--control...............................     36-00-00
 

    This account includes rents with terms of less than 30 days which 
are not renewed. This account includes all time and mileage receipts for 
interchanged locomotive, freight car, and other revenue equipment hire. 
The components of this account will be distributed to the following 
accounts in accordance with instruction 1-8 of Part 1201, Subpart A:

Other rents--credit--way and structures--running: Freight..     36-11-00
Other rents--credit--way and structures--switching: Freight     36-12-00
Other rents--credit--way and structures--other: Freight....     36-13-00
Other rents--credit--equipment--locomotives: Freight.......     36-21-00
Other rents--credit--equipment--freight cars: Freight......     36-22-00
Other rents--credit--equipment--other equipment: Freight...     36-23-00
Joint facility--debit--control.............................     37-00-00
 

    This account includes joint trackage and joint facility costs, 
exclusive of rents, payable by the railroad to others. The components of 
this account will be distributed to the following accounts in accordance 
with instruction 1-8 of Part 1201, Subpart A:

Joint Facility--debit--way and structures--running: Freight     37-11-00
Joint Facility--debit--way and structures--switching:
 Freight...................................................     37-12-00
Joint Facility--debit--way and structures--other: Freight..     37-13-00
Joint facility--debit--equipment--locomotives: Freight.....     37-21-00
Joint facility--debit--equipment--freight cars: Freight....     37-22-00
Joint facility--debit--equipment--other equipment: Freight.     37-23-00
Joint facility--debit--transportation--train: Freight......     37-31-00
Joint facility--debit--transportation--yard: Freight.......     37-32-00
Joint facility--debit--transportation--specialized
 services: Freight.........................................     37-34-00
Joint facility--debit--transportation--administrative
 support: Freight..........................................     37-35-00
Joint facility--debit--general and administrative: Freight.     37-61-00
Joint facility--credit--control............................     38-00-00
 

    This account includes joint trackage and joint facility costs, 
exclusive of rents, payable by others to the railroad. The components of 
this account will be distributed to the following accounts in accordance 
with instruction 1-8 of Part 1201, Subpart A:

Joint facility--credit--way and structures--running:
 Freight...................................................     38-11-00
Joint facility--credit--way and structures--switching:
 Freight...................................................     38-12-00
Joint facility--credit--way and structures--other: Freight.     38-13-00
Joint facility--credit--equipment--locomotives: Freight....     38-21-00
Joint facility--credit--equipment--freight cars: Freight...     38-22-00
Joint facility--credit--equipment--other equipment: Freight     38-23-00
Joint facility--credit--transportation--train: Freight.....     38-31-00
Joint facility--credit--transportation--yard: Freight......     38-32-00
Joint facility--credit--transportation--specialized
 services: Freight.........................................     38-34-00
Joint facility--credit--transportation--administrative
 support: Freight..........................................     38-35-00
Joint facility--credit--general and administrative: Freight     38-61-00
Repairs billed by others--debit--control...................     39-00-00
 

    This account includes amounts payable by the railroad to others for 
repair and maintenance of the reporting railroad's property and 
equipment. The components of this account shall be distributed to the 
following accounts in accordance with instruction 1-8 of Part 1201, 
Subpart A:

Repairs billed by others--debit--way and structures--
 running: Freight..........................................     39-11-XX
 

    This account includes amounts payable by the railroad to others for 
repair and maintenance of the reporting railroad's property associated 
with the carrier's roadway and track on the line of road and outside of 
classification yards. This account shall be subdivided by the following 
functions:

                   Repair and maintenance
 
Roadway....................................................     39-11-10
Tunnels and subways........................................     39-11-11
Bridges and culverts.......................................     39-11-12
Track laying and surfacing.................................     39-11-17
Signals and interlockers...................................     39-11-19
Highway grade crossings....................................     39-11-22
Road property and equipment damaged........................     39-11-48
Repairs billed by others--debit--way and structures--
 switching: Freight........................................     39-12-XX
 

    This account includes amounts payable by the railroad to others for 
repair and maintenance of the reporting railroad's property associated 
with the carrier's roadway and track within classification yards and 
stations. This account shall be subdivided by the following functions:

                   Repair and maintenance
 
Roadway....................................................     39-12-10
Tunnels and subways........................................     39-12-11
Bridges and culverts.......................................     39-12-12
Track laying and surfacing.................................     39-12-17
Signals and interlockers...................................     39-12-19
Highway grade crossings....................................     39-12-22
Road property and equipment damaged........................     39-12-48
Repairs billed by others--debit--way and structures--other:
 Freight...................................................     39-13-XX
 

    This account includes amounts payable by the railroad to others for 
repair and maintenance of the carrier's structures other than roadway 
and track. This account shall be subdivided by the following functions:

                   Repair and maintenance
 
Communication systems......................................     39-13-20
Electric power systems.....................................     39-13-21
Station and office buildings...............................     39-13-23
Shop buildings--locomotives................................     39-13-24
Shop buildings--freight cars...............................     39-13-25
Shop buildings--other equipment............................     39-13-26
Locomotive servicing facilities............................     39-13-27
Miscellaneous buildings and structures.....................     39-13-28

[[Page 158]]

 
Coal terminals.............................................     39-13-29
Ore terminals..............................................     39-13-30
TOFC/COFC terminals........................................     39-13-31
Other marine terminals.....................................     39-13-32
Motor vehicle loading and distribution facilites...........     39-13-33
Facilities for other specialized services operations.......     39-13-35
Roadway machines...........................................     39-13-36
Small tools and supplies...................................     39-13-37
Snow removal...............................................     39-13-38
Road property and equipment damaged........................     39-13-48
Repairs billed by others--debit--equipment--locomotives:
 Freight...................................................     39-21-XX
 

    This account includes amounts payable by the railroad to others for 
repair and maintenance under the locomotive subactivity. This account 
shall be subdivided by the following functions:

                   Repair and maintenance
 
Machinery..................................................     39-21-40
Locomotives................................................     39-21-41
Road property and equipment damaged........................     39-21-48
Repairs billed by others--debit--equipment--freight cars:
 Freight...................................................     39-22-XX
 

    This account includes amounts payable by the railroad to others for 
repair and maintenance under the freight car subactivity. This account 
shall be subdivided by the following function:

                   Repair and maintenance
 
Machinery..................................................     39-22-40
Freight cars...............................................     39-22-42
Road property and equipment damaged........................     39-22-48
Repairs billed by others--debit--equipment--other
 equipment: Freight........................................     39-23-XX
 

    This account includes amounts payable by the railroad to others for 
the repair and maintenance of equipment not pertaining to the locomotive 
or freight car subactivity. This account shall be subdivided by the 
following functions:

                   Repair and maintenance
 
Machinery..................................................     39-23-40
Trucks, trailers, and containers in revenue service........     39-23-43
Floating equipment--revenue service........................     39-23-44
Passenger and other revenue equipment......................     39-23-45
Computers and data processing equipment....................     39-23-46
Work and other nonrevenue equipment........................     39-23-47
Road property and equipment damaged........................     39-23-48
Repairs billed to others--credit--control..................     40-00-00
 

    This control account includes amounts payable by others to the 
railroad for repair and maintenance of others' road property and 
equipment. The components of this account shall be distributed to the 
following accounts in accordance with instruction 1-8 of Part 1201, 
Subpart A:

Repairs billed to others--credit--way and structures--
 running: Freight..........................................     40-11-XX
 

    This account includes amounts payable by others to the railroad for 
repair and maintenance of other railroads' roadway and track on the line 
of road and outside of classification yards. This account shall be 
subdivided by the following functions:

                   Repair and maintenance
 
Roadway....................................................     40-11-10
Tunnels and subways........................................     40-11-11
Bridges and culverts.......................................     40-11-12
Track laying and surfacing.................................     40-11-17
Signals and interlockers...................................     40-11-19
Highway grade crossings....................................     40-11-22
Road property and equipment damaged........................     40-11-48
Repairs billed to others--credit--way and structures--
 switching: Freight........................................     40-12-XX
 

    This account includes amounts payable by others to the railroad for 
repair and maintenance of other railroads' roadway and track within 
classification yards and stations. This account shall be subdivided by 
the following functions:

                   Repair and maintenance
 
Roadway....................................................     40-12-10
Tunnels and subways........................................     40-12-11
Bridges and culverts.......................................     40-12-12
Track laying and surfacing.................................     40-12-17
Signals and interlockers...................................     40-12-19
Highway grade crossings....................................     40-12-22
Road property and equipment damaged........................     40-12-48
Repairs billed to others--credit--way and structures--
 other: Freight............................................     40-13-XX
 

    This account includes amounts payable by others to the railroad for 
repair and maintenance of other railroads' structures other than roadway 
and track. This account shall be subdivided by the following functions:

                   Repair and maintenance
 
Communication systems......................................     40-13-20
Electric power systems.....................................     40-13-21
Station and office buildings...............................     40-13-23
Shop buildings--locomotives................................     40-13-24
Shop buildings--freight cars...............................     40-13-25
Shop buildings--other equipment............................     40-13-26
Locomotive servicing facilities............................     40-13-27
Miscellaneous buildings and structures.....................     40-13-28
Coal terminals.............................................     40-13-29
Ore terminals..............................................     40-13-30
TOFC/COFC terminals........................................     40-13-31
Other marine terminals.....................................     40-13-32
Motor vehicle loading and distribution facilities..........     40-13-33
Facilities for other specialized services operations.......     40-13-35
Roadway machines...........................................     40-13-36
Small tools and supplies...................................     40-13-37
Snow removal...............................................     40-13-38
Road property and equipment damaged........................     40-13-48
Repairs billed to others--credit--equipment--locomotives:
 Freight...................................................     40-21-XX
 

    This account includes amounts payable by others to the railroad for 
repair and maintenance of other railroads' locomotives. This account 
shall be subdivided by the following functions:

                   Repair and maintenance
 
Machinery..................................................     40-21-40
Locomotives................................................     40-21-41
Road property and equipment damaged........................     40-21-48
Repairs billed to others--credit--equipment--freight cars:
 Freight...................................................     40-22-XX
 

    This account includes amounts payable by others to the railroad for 
repair and maintenance of other railroads' freight cars. This account 
shall be subdivided by the following functions:

[[Page 159]]



                   Repair and maintenance
 
Machinery..................................................     40-22-40
Freight cars...............................................     40-22-42
Road property and equipment damaged........................     40-22-48
Repairs billed to others--credit--equipment--other
 equipment: Freight........................................     40-23-XX
 

    This account includes amounts payable by others to the railroad for 
repair and maintenance of other railroads' other equipment. This account 
shall be subdivided by the following functions:

                   Repair and maintenance
 
Machinery..................................................     40-23-40
Trucks, trailers, and containers in revenue service........     40-23-43
Floating equipment--revenue service........................     40-23-44
Passenger and other revenue equipment......................     40-23-45
Computers and data processing equipment....................     40-23-46
Work and other non-revenue equipment.......................     40-23-47
Road property and equipment damaged........................     40-23-48
Other purchased services--control..........................     41-00-00
 

    This control account includes amounts charged or credited to 
operating expenses for purchased advertising; purchased printing; 
outside professional services such as legal, accounting, audit, 
engineering, and consulting; payments for detour of trains; utilities, 
telephone, postage, subscriptions, communications, purchased electric 
power for train and locomotive propulsion; and other services purchased. 
The components of this account shall be distributed to the following 
accounts in accordance with instruction 1-8 of Part 1201, Subpart A:

Other purchased services--way and structures--running:
 Freight...................................................     41-11-XX
 

    This account includes amounts charged or credited to operating 
expenses for other purchased services specified in control account 41-
00-00. This account shall be subdivided by the following functions:

                   Repair and maintenance
 
Roadway....................................................     41-11-10
Tunnels and subways........................................     41-11-11
Bridges and culverts.......................................     41-11-12
Track laying and surfacing.................................     41-11-17
Signals and interlockers...................................     41-11-19
Highway grade crossings....................................     41-11-22
Dismantling retired property...............................     41-11-39
Road property and equipment damaged........................     41-11-48
Other--other...............................................     41-11-99
Other purchased services--way and structures--switching:
 Freight...................................................     41-12-XX
 

    This account includes amounts charged or credited to operating 
expenses for other purchased services specified in control account 41-
00-00. This account shall be subdivided by the following functions:

                   Repair and maintenance
 
Roadway....................................................     41-12-10
Tunnels and subways........................................     41-12-11
Bridges and culverts.......................................     41-12-12
Track laying and surfacing.................................     41-12-17
Signals and interlockers...................................     41-12-19
Highway grade crossings....................................     41-12-22
Dismantling retired property...............................     41-12-39
Road property and equipment damaged........................     41-12-48
Other--other...............................................     41-12-99
Other purchased services--way and structures--other:
 Freight...................................................     41-13-XX
 

    This account includes amounts charged or credited to operating 
expenses for other purchased services specified in control account 41-
00-00. This account shall be subdivided by the following functions:

                       Administration
 
Track......................................................     41-13-02
Bridges and buildings......................................     41-13-03
Signals....................................................     41-13-04
Communications.............................................     41-13-05
Other......................................................     41-13-06
 
                   Repair and maintenance
 
Communication systems......................................     41-13-20
Electric power systems.....................................     41-13-21
Station and office buildings...............................     41-13-23
Shop buildings--locomotives................................     41-13-24
Shop buildings--freight cars...............................     41-13-25
Shop buildings--other equipment............................     41-13-26
Locomotive servicing facilities............................     41-13-27
Miscellaneous buildings and structures.....................     41-13-28
Coal terminals.............................................     41-13-29
Ore terminals..............................................     41-13-30
TOFC/COFC terminals........................................     41-13-31
Other marine terminals.....................................     41-13-32
Motor vehicle loading and distribution facilities..........     41-13-33
Facilities for other specialized services operations.......     41-13-35
Roadway machines...........................................     41-13-36
Small tools and supplies...................................     41-13-37
Snow removal...............................................     41-13-38
Dismantling retired property...............................     41-13-39
Road property and equipment damaged........................     41-13-48
Other--other...............................................     41-13-99
Other purchased services--equipment--locomotives: Freight..     41-21-XX
 

    This account includes amounts charged or credited to operating 
expenses for other purchased services specified in control account 41-
00-00. This account shall be subdivided by the following functions:

Administration--general....................................     41-21-01
 
                   Repair and maintenance
 
Dismantling retired property...............................     41-21-39
Machinery..................................................     41-21-40
Locomotive.................................................     41-21-41
Road property and equipment damaged........................     41-21-48
Other--other...............................................     41-21-99
Other purchased services--equipment--freight cars: Freight.     41-22-XX
 

    This account includes amounts charged or credited to operating 
expenses for other purchased services specified in control account 41-
00-00. This account shall be subdivided by the following functions:

Administration--general....................................     41-22-01
 
                   Repair and maintenance
 
Dismantling retired property...............................     41-22-39
Machinery..................................................     41-22-40
Freight cars...............................................     41-22-42
Road property and equipment damaged........................     41-22-48
Other--other...............................................     41-22-99
Other purchased services--equipment--other equipment:
 Freight...................................................     41-23-XX
 

    This account includes amounts charged or credited to operating 
expenses for other purchased services specified in control account

[[Page 160]]

41-00-00. This account shall be subdivided by the following functions:

Administration--general....................................     41-23-01
 
                   Repair and maintenance
 
Dismantling retired property...............................     41-23-39
Machinery..................................................     41-23-40
Trucks, trailers, containers in revenue service............     41-23-43
Floating equipment--revenue service........................     41-23-44
Passenger and other revenue equipment......................     41-23-45
Computers and data processing equipment....................     41-23-46
Work and other nonrevenue equipment........................     41-23-47
Road property and equipment damaged........................     41-23-48
Other--other...............................................     41-23-99
Other purchased services--transportation--train: Freight...     41-31-XX
 

    This account includes amounts charged or credited to operating 
expenses for other purchased services specified in control account 41-
00-00. This account shall be subdivided by the following functions:

Administration--general....................................     41-31-01
 
                         Operations
 
Engine crews...............................................     41-31-56
Train crews................................................     41-31-57
Dispatching trains.........................................     41-31-58
Operating switches, signals, interlockers, retarders, humps     41-31-59
Operating drawbridges......................................     41-31-60
Highway crossing protection................................     41-31-61
Train inspection and lubrication...........................     41-31-62
Clearing wrecks............................................     41-31-63
Locomotive fuel............................................     41-31-67
Electric power purchased/produced for motive power.........     41-31-68
Servicing locomotives......................................     41-31-69
Other--other...............................................     41-31-99
Other purchased services--transportation--yard: Freight....     41-32-XX
 

    This account includes amounts charged or credited to operating 
expenses for other purchased services specified in control account 41-
00-00. This account shall be subdivided by the following functions:

Administration--general....................................     41-32-01
 
                         Operations
 
Operating switches, signals, interlockers, retarders, humps     41-32-59
Clearing wrecks............................................     41-32-63
Switch crews...............................................     41-32-64
Controlling operations.....................................     41-32-65
Yard and terminal clerical.................................     41-32-66
Locomotive fuel............................................     41-32-67
Electric power purchased/produced for motive power.........     41-32-68
Servicing locomotives......................................     41-32-69
Other--other...............................................     41-32-99
Other purchased services--transportation--train and yard
 common: Freight...........................................     41-33-XX
 

    This account includes amounts charged or credited to operating 
expenses for other purchased services specified in control account 41-
00-00. This account shall be subdivided by the following functions:

                         Operations
 
Cleaning car interiors.....................................     41-33-70
Adjusting, transferring loads..............................     41-33-71
Car loading devices and grain doors........................     41-33-72
Other purchased services--transportation--specialized
 services: Freight.........................................     41-34-XX
 

    This account includes amounts charged or credited to operating 
expenses for other purchased services specified in control account 41-
00-00. This account shall be subdivided by the following functions:

Administration--general....................................     41-34-01
 
                         Operations
 
Pick up and delivery, marine line haul, and rail substitute
 service...................................................     41-34-73
Loading, unloading, and local marine.......................     41-34-74
Protective Services........................................     41-34-75
Other--other...............................................     41-34-99
Other purchased services--transportation--administrative
 support: freight..........................................     41-35-XX
 

    This account includes amounts charged or credited to operating 
expenses for other purchased services specified in control account 41-
00-00. This account shall be subdivided by the following functions:

Administration--general....................................     41-35-01
 
                         Operations
 
Clerks, accounting employees...............................     41-35-76
Communication systems operations...........................     41-35-77
Loss and damage claims processing..........................     41-35-78
Other--other...............................................     41-35-99
Other purchased services--general and administrative:
 freight...................................................     41-61-XX
 

    This account includes amounts charged or credited to operating 
expenses for other purchased services specified in control account 41-
00-00. This account shall be subdivided by the following functions:

Administration--general....................................     41-61-01
 
                          General
 
Accounting, auditing, finance..............................     41-61-86
Management services and data processing....................     41-61-87
Marketing..................................................     41-61-88
Sales......................................................     41-61-89
Industrial development.....................................     41-61-90
Personnel and labor relations..............................     41-61-91
Legal and secretarial......................................     41-61-92
Public relations and advertising...........................     41-61-93
Research and development...................................     41-61-94
Other--other...............................................     41-61-99
 


                          Claims and Insurance
Control....................................................     50-00-00
 

    This account may be used as a control account for all accounts in 
the CLAIMS AND INSURANCE series: loss and damage claims; other 
casualties; insurance.

Loss and damage claims--control............................     51-00-00
 

    This account includes amounts payable to compensate for the loss or 
damage of freight or other goods carried in revenue service. This 
account excludes amounts payable to employees or other parties for 
injuries sustained or loss of life; for damage to real property of 
others or personal property not carried in revenue service; all payments 
for other damages of any kind; and related insurance premiums.

Loss and damage claims--transportation--train: freight.....     51-31-00
 

    This account includes amounts payable to compensate for the loss or 
damage of freight

[[Page 161]]

or other goods carried in revenue service while operating all trains 
except those performing yard functions in terminals.

Loss and damage claims--transportation--yard: freight......     51-32-00
 

    This account includes amounts payable to compensate for the loss or 
damage of freight or other goods carried in revenue service which is 
lost or damaged in yards or terminals.

Loss and damage claims--transportation--train and yard
 common: freight...........................................     51-33-00
 

    This account includes amounts payable to compensate for the loss or 
damage of freight or other goods carried in revenue service which are 
not predominantly train or yard.

Loss and damage claims--transportation--specialized
 services: freight.........................................     51-34-00
 

    This account includes amounts payable to compensate for the loss or 
damage of freight or other goods carried in revenue service incurred in 
designated specialized services operations.

Other casualties--control..................................     52-00-00
 

    This account includes amounts payable to employees or other parties 
for injuries sustained or loss of life in connection with the 
construction, maintenance, operations, and administration of railroad 
property and equipment; for damage to real property, property of others 
or personal property not carried in revenue service; all payments for 
other damages of any kind. This account excludes freight and other goods 
carried in revenue service, and insurance premiums related to the 
casualties chargeable to this account.
    Note: The costs of clearing wrecks and repairing casualty-caused 
damage to the railroad's property and equipment are properly classified 
under other natural expense accounts as appropriate and further 
classified by relevant activities and functions.

    These costs are appropriately charged to the following natural 
accounts:

Other casualties--way and structures--running: freight.....     52-11-00
Other casualties--way and structures--switching: freight...     52-12-00
Other casualties--way and structures--other: freight.......     52-13-00
Other casualties--equipment--locomotives: freight..........     52-21-00
Other casualties--equipment--freight cars: freight.........     52-22-00
Other casualties--equipment--Other equipment: freight......     52-23-00
Other casualties--transportation--train: freight...........     51-31-00
Other casualties--transportation--yard: freight............     51-32-00
Other casualties--transportation--specialized services:
 freight...................................................     52-34-00
Other casualties--transportation--administrative support:
 freight...................................................     52-35-00
Other casualties--general and administrative: freight......     52-61-00
Insurance--control.........................................     53-00-00
 

    This account includes premiums for insurance to cover property and 
equipment loss and damage, liability, business interruption, and the 
like. These costs are appropriately charged to the following accounts:

Insurance--way and structures--running: freight............     53-11-00
Insurance--way and structures--switching: freight..........     53-12-00
Insurance--way and structures--other: freight..............     53-13-00
Insurance--equipment--locomotives: freight.................     53-21-00
Insurance--equipment--freight cars: freight................     53-22-00
Insurance--equipment--other equipment: freight.............     53-23-00
Insurance--transportation--train: freight..................     53-31-00
Insurance--transportation--yard: freight...................     53-32-00
Insurance--transportation--specialized services: freight...     53-34-00
Insurance--transportation--administrative support: freight.     53-35-00
Insurance--general and administrative: freight.............     53-61-00
 


                                 General
Control....................................................     60-00-00
 


    This account may be used as a control account for all accounts in 
the GENERAL series: other expenses; depreciation; uncollectible 
accounts; property taxes; other taxes.

Other expenses--control....................................     61-00-00
 

    This account includes amounts charged to operating expenses for 
items not otherwise provided for in the other natural expense accounts, 
including travel and other expenses of employees, road property and 
equipment retirement losses, and other items of a general nature.

Other expenses--way and structures--running: freight.......     61-11-XX
 

    This account includes amounts charged to operating expenses for 
items not otherwise provided for in the other natural expense accounts, 
including travel and other expenses of employees, road property 
retirement lossses, and other items of a general nature associated with 
the carrier's roadway and track on the line of road and outside of 
classification yards. This account shall be subdivided by the following 
functions:

                   Repair and maintenance
 
Roadway....................................................     61-11-10
Tunnels and subways........................................     61-11-11
Bridges and culverts.......................................     61-11-12
Track laying and surfacing.................................     61-11-17
Signals and interlockers...................................     61-11-19
Highway grade crossings....................................     61-11-22
Dismantling retired property...............................     61-11-39
Road property and equipment damaged........................     61-11-48
Other--other...............................................     61-11-99
Other expenses--way and structures--switching: freight.....     61-12-XX
 

    This account includes amount charged to operating expenses for items 
not otherwise provided for in the other natural expense accounts, 
including travel and other expenses of employees, road property 
retirement losses, and other items of a general nature

[[Page 162]]

associated with the carrier's roadway and track within classification 
yards and stations. This account shall be subdivided by the following 
functions:

                   Repair and maintenance
 
Roadway....................................................     61-12-10
Tunnels and subways........................................     61-12-11
Bridges and culverts.......................................     61-12-12
Track laying and surfacing.................................     61-12-17
Signals and interlockers...................................     61-12-19
Highway grade crossings....................................     61-12-22
Dismantling retired property...............................     61-12-39
Road property and equipment damaged........................     61-12-48
Other--other...............................................     61-12-99
Other expenses--way and structures--other: freight.........     61-13-XX
 

    This account includes amounts charged to operating expenses for 
items not otherwise provided for in the other natural expense accounts, 
including travel and other expenses of employees, road property 
retirement losses, and other items of a general nature associated with 
the carrier's structures other than roadway and track. This account 
shall be subdivided by the following functions:

                       Administration
 
Track......................................................     61-13-02
Bridges and buildings......................................     61-13-03
Signals....................................................     61-13-04
Communications.............................................     61-13-05
Other......................................................     61-13-06
 
                   Repair and maintenance
 
Communication systems......................................     61-13-20
Electric power systems.....................................     61-13-21
Station and office buildings...............................     61-13-23
Shop buildings--locomotives................................     61-13-24
Shop buildings--freight cars...............................     61-13-25
Shop buildings--other equipment............................     61-13-26
Locomotive servicing facilities............................     61-13-27
Miscellaneous buildings and structures.....................     61-13-28
Coal terminals.............................................     61-13-29
Ore terminals..............................................     61-13-30
TOFC/COFC terminals........................................     61-13-31
Other marine terminals.....................................     61-13-32
Motor vehicle loading and distribution facilities..........     61-13-33
Facilities for other specialized services operations.......     61-13-35
Roadway machines...........................................     61-13-36
Small tools and supplies...................................     61-13-37
Snow removal...............................................     61-13-38
Dismantling retired property...............................     61-13-39
Road property and equipment damaged........................     61-13-48
Other--other...............................................     61-13-99
Other expenses--equipment--locomotives: Freight............     61-21-XX
 

    This account includes amounts charged to operating expenses for 
items not otherwise provided for in the other natural expense accounts, 
including travel and other expenses of employees and equipment 
retirement losses, associated with the repair and maintenance of 
locomotives, whether owned by the carrier or by others. This account 
shall be subdivided by the following functions:

Administration--general....................................     61-21-01
 
                   Repair and maintenance
 
Dismantling retired property...............................     61-21-39
Machinery..................................................     61-21-40
Locomotives................................................     61-21-41
Road property and equipment damaged........................     61-21-48
Other--other...............................................     61-21-99
Other expenses--equipment--freight cars: Freight...........     61-22-XX
 

    This account includes amounts charged to operating expenses for 
items not otherwise provided for in the other natural expense accounts, 
including travel and other expenses of employees, equipment retirement 
losses, associated with the repair and maintenance of freight cars, 
whether owned by the carrier or by others. This account shall be 
subdivided by the following functions:

Administration--general....................................     61-22-01
 
                   Repair and maintenance
 
Dismantling retired property...............................     61-22-39
Machinery..................................................     61-22-40
Freight cars...............................................     61-22-42
Road property and equipment damaged........................     61-22-48
Other--other...............................................     61-22-99
Other expenses--equipment--other equipment: Freight........     61-23-XX
 

    This account includes amounts charged to operating expenses for 
items not otherwise provided for in the other natural expense accounts, 
including travel and other expenses of employees, equipment retirement 
losses, associated with the repair and maintenance of equipment other 
than locomotives and freight cars, whether owned by the carrier or by 
others. This account shall be subdivided by the following functions:

Administration--general....................................     61-23-01
 
                   Repair and maintenance
 
Dismantling retired property...............................     61-23-39
Machinery..................................................     61-23-40
Trucks, trailers, containers in revenue service............     61-23-43
Floating equipment--revenue service........................     61-23-44
Passenger and other revenue equipment......................     61-23-45
Computers and data processing equipment....................     61-23-46
Work and other nonrevenue equipment........................     61-23-47
Road property and equipment damaged........................     61-23-48
Other--other...............................................     61-23-99
Other expenses--transportation--train: Freight.............     61-31-XX
 

    This account includes amounts charged to operating expenses for 
items not otherwise provided for in the other natural expense accounts, 
including travel and other expenses of employees, associated with the 
dispatching and operations of freight trains over the roadway and 
outside of classification yards. This account shall be subdivided by the 
following functions:

Administration--general....................................     61-31-01
 
                         Operations
 
Engine crews...............................................     61-31-56
Train crews................................................     61-31-57
Dispatching trains.........................................     61-31-58
Operating switches, signals, interlockers, retarders, humps     61-31-59
Operating drawbridges......................................     61-31-60
Highway crossing protection................................     61-31-61
Train inspection and lubrication...........................     61-31-62
Clearing wrecks............................................     61-31-63
Locomotive fuel............................................     61-31-67
Electric power purchased/produced for motive power.........     61-31-68

[[Page 163]]

 
Servicing locomotives......................................     61-31-69
Other--other...............................................     61-31-99
Other expenses--transportation--yard: Freight..............     61-32-XX
 

    This account includes amounts charged to operating expenses for 
items not otherwise provided for in the other natural expense accounts, 
including travel and other expenses of employees, and other items of a 
general nature associated with the movement of freight cars within 
classification yards and in terminal switching and transfer service. 
This account shall be subdivided by the following functions:

Administration--general....................................     61-32-01
 
                         Operations
 
Operating switches, signals, interlockers, retarders, humps     61-32-59
Clearing wrecks............................................     61-32-63
Switch crews...............................................     61-32-64
Controlling operations.....................................     61-32-65
Yard and terminal clerical.................................     61-32-66
Locomotive fuel............................................     61-32-67
Electric power purchased/produced for motive power.........     61-32-68
Servicing locomotives......................................     61-32-69
Other--other...............................................     61-32-99
Other expenses--transportation--specialized services:
 Freight...................................................     61-34-XX
 

    This account includes amounts charged to operating expenses for 
items not otherwise provided for in the other natural expense accounts, 
including travel and other expenses of employees, and other items of a 
general nature incurred in operating services which are specialized in 
nature and in cost characteristics. The specialized services designated 
by the Commission appear within the definition of specialized services. 
This account shall be subdivided by the following functions:

Administration--general....................................     61-34-01
 
                         Operations
 
Pick up and delivery, marine line haul, and rail substitute
 service...................................................     61-34-73
Loading, unloading, and local marine.......................     61-34-74
Protective services........................................     61-34-75
Other--other...............................................     61-34-99
Other expenses--transportation--administrative support:
 Freight...................................................     61-35-XX
 

    This account includes amounts charged to operating expenses for 
items not otherwise provided for in the other natural expense accounts, 
including travel and other expenses of employees, and other items of a 
general nature incurred in association with providing direct 
administrative support for the Transportation Activity. This account 
shall be subdivided by the following functions:

Administration--general....................................     61-35-01
 
                         Operations
 
Clerks, accounting employees...............................     61-35-76
Communication systems operations...........................     61-35-77
Loss and damage claims processing..........................     61-35-78
Other--other...............................................     61-35-99
Other expenses--general and administrative: Freight........     61-61-XX
 

    This account includes amounts charged to operating expenses for 
items not otherwise provided for in the other natural expense accounts, 
including travel and other expenses of employees, and other items of a 
general nature incurred in providing overall administration of other 
support for carrier operations. This account shall be subdivided by the 
following functions:

Administration--general....................................     61-61-01
 
                          General
 
Accounting, auditing, finance..............................     61-61-86
Management services and data processing....................     61-61-87
Marketing..................................................     61-61-88
Sales......................................................     61-61-89
Industrial development.....................................     61-61-90
Personnel labor relations..................................     61-61-91
Legal and secretarial......................................     61-61-92
Public relations and advertising...........................     61-61-93
Research and development...................................     61-61-94
Other--other...............................................     61-61-99
Depreciation--control......................................     62-00-00
 

    This control account includes the amounts charged to operating 
expenses for depreciation of owned road property and equipment, and the 
depreciation element of road property held under capital lease in 
accordance with FASB Statement No. 13. These costs are appropriately 
charged to the following natural accounts:

Depreciation--way and structures--running: Freight.........     62-11-00
Depreciation--way and structures--switching: Freight.......     62-12-00
Depreciation--way and structures--other: Freight...........     62-13-00
Depreciation--equipment--locomotives: Freight..............     62-21-00
Depreciation--equipment--freight cars: Freight.............     62-22-00
Depreciation--equipment--other equipment: Freight..........     62-23-00
Uncollectible accounts--control............................     63-00-00
 

    This account includes charges to operating expenses for the 
writedown of accounts and notes due to the railroad, whether classified 
as current or long-term. This account includes any credits to allowance 
accounts for collectibility and total writeoff of receivables. This 
account does not include writedowns of property, equipment, or 
investments (except accounts, notes, or other receivables held as 
investments). Proper adjustments of incorrect receivables are not to be 
charged to this account. Collections of amounts previously written off 
or down are to be credited to this account. The total of this account 
shall be charged to the following account:

Uncollectible accounts--general and administrative: Freight     63-61-00
Property taxes--control....................................     64-00-00
 

    This account includes only taxes based on the value of real estate 
and personal property used in railroad operations. The total of this 
account shall be charged to the following account:

Property taxes--general and administrative: Freight........     64-61-00
Other taxes--control.......................................     65-00-00
 


[[Page 164]]

    This account includes taxes on gross receipts, franchise fees, 
excise taxes, and similar items. This account excludes property taxes 
and taxes chargeable as emloyee benefits. The total of this account 
shall be charged to the following account:

Other taxes--general and administrative: Freight...........     65-61-00
 

    (2) Other computed cost elements.

651  Locomotives return on investment.
652  Freight train car costs.
01  Per day costs.
02  Mileage costs.
654  Rehabilitation.
664  Deadheading, taxi and hotel costs.
01  Deadheading.
02  Taxi.
03  Hotel.
665  Overhead movement costs.
01  Transportation.
02  Equipment.
03  Freight-train cars--mileage portion.

    (3) Off-branch avoidable costs.

661  Terminal costs.
01  Modified terminal costs.
02  Normal terminal costs.
03  Interchange costs.
662  Freight train car costs.
663  Freight train revenue ton-mile costs.

    (4) All other avoidable costs.1
---------------------------------------------------------------------------

    1  Accounts 671-675 apply to Part 1152 only. Accounts 677 and 
682 apply to Part 1155 only.

671  Working capital.
672  Required capital expenditures.
673  Deferred maintenance.
674  Current cost of freight train cars, locomotives, and other 
equipment.
675  Foregone tax benefits.
676  Administrative costs.
677  Deferred subsidy payment costs.
678  Casualty reserve expenses.
Total, all other avoidable costs.
681  Reasonable return on the value of properties.
682  Management fee.

[43 FR 1733, Jan. 11, 1978, as amended at 43 FR 28498, June 30, 1978; 44 
FR 9730, Feb. 14, 1979; 47 FR 49596, Nov. 1, 1982]

Appendix I to Part 1201--Certification of Branch Line Accounting System 
                                 Records

Carrier: (Exact legal title or name of the respondent)__________________
_______________________________________________________________________

Name, title, telephone number and address of the person to be contacted:

Name____________________________________________________________________
Title___________________________________________________________________
Telephone Number: (Area Code) and (Telephone number)____________________
Office Address: (Street and number) (City, State, and ZIP code)_________
_______________________________________________________________________

                              certification

I, the undersigned,_____________________________________________________
of (Title of officer in charge of accounts)_____________________________
_______________________________________________________________________
(Full name of reporting company)________________________________________

certify that during the calendar year 19---- the branch line accounting 
system data were collected and maintained for each line that met the 
criteria set forth in 49 CFR 1201, Subpart B, section 920(a), Lines For 
Which Data Collection Is Required, (Docket No. 36366).

                Signature_______________________________________________

    Date------------

    The lines covered by this certification are described below: 
(Describe each branch line separately using the following format as set 
forth in 49 CFR 1152.11.)
    (a) Carrier's designation for line (Ex. Zanesville Secondary Track);
    (b) State or states in which line is located;
    (c) County or counties in which line is located;
    (d) Milepost delineating each line or portion of line;
    (e) Agency or terminal station(s) located on line or portion of line 
with milepost designations;
    (f) Current category designation and date placed in that category; 
and
    (g) Previous category.

[44 FR 9730, Feb. 14, 1979, as amended at 47 FR 49596, Nov. 1, 1982]



PARTS 1202--1219--[RESERVED]






PARTS 1220-1239--PRESERVATION OF RECORDS--Table of Contents




    Note: Section 20(7)(b) of the Interstate Commerce Act includes the 
following provision:
    Any person who shall knowingly and willfully make, cause to be made, 
or participate in the making of, any false entry in any annual or other 
report required under this section to be filed, or in the accounts of 
any book of accounts or in any records or memoranda kept by a carrier, 
or required under this section to be kept by a lessor or other person, 
or who shall knowingly and willfully destroy, mutilate, alter, or by any 
other means or device falsify the record of any such accounts, records, 
or memoranda, * * * shall be deemed guilty of a misdemeanor and shall be 
subject, upon conviction in any

[[Page 165]]

court of the United States of competent jurisdiction to a fine of not 
more than five thousand dollars or imprisonment for not more than two 
years, or both such fine and imprisonment: Provided, That the Board may 
in its discretion issue orders specifying such operating, accounting, or 
financial papers, records, books, blanks, tickets, stubs, 
correspondence, or documents of such carriers, lessors, or other persons 
as may, after a reasonable time, be destroyed, and prescribing the 
length of time the same shall be preserved.



PART 1220--PRESERVATION OF RECORDS--Table of Contents




Sec.
1220.0  Applicability.
1220.1  Records required to be retained.
1220.2  Protection and storage of records.
1220.3  Preservation of records.
1220.4  Companies going out of business.
1220.5  Waiver of requirements of these regulations.
1220.6  Schedule of records and periods of retention.

    Authority: 49 U.S.C. 721, 11144, 11145.

    Source: 50 FR 10775, Mar. 18, 1985 and 51 FR 22083, June 18, 1986, 
unless otherwise noted.



Sec. 1220.0  Applicability.

    The preservation of record rules contained in this part shall apply 
to the following:

Railroad companies
Electric railway companies
Express companies
Persons furnishing cars to railroads
Ratemaking organizations


This part applies also to the preservation of accounts, records and 
memoranda of traffic associations, demurrage and car service bureaus, 
weighing and inspection bureaus, and other joint activities maintained 
by or on behalf of companies listed in the above paragraph of this 
subpart.

[50 FR 1075, Mar. 18, 1985 and 51 FR 22083, June 18, 1986, as amended at 
51 FR 44297, Dec. 9, 1986; 62 FR 50525, Sept. 26, 1997]



Sec. 1220.1  Records required to be retained.

    Companies subject to this part shall retain records for the minimum 
retention periods required by Sec. 1220.6, Schedule of records and 
periods of retention. After the required retention periods, the records 
may be destroyed at the discretion of each company's management. It 
shall be the obligation of the subject company to maintain records that 
adequately support financial and operational data required by the Board. 
The company may request a ruling from the Board on the retention of any 
record. The provisions of this part shall not be construed as excusing 
compliance with the lawful requirements of any other governmental body 
prescribing longer retention periods for any category of records.



Sec. 1220.2  Protection and storage of records.

    (a) The company shall protect records subject to this part from 
fires, floods, and other hazards, and safeguard the records from 
unnecessary exposure to deterioration from excessive humidity, dryness, 
or lack of ventilation.
    (b) The company shall notify the Board if prescribed records are 
substantially destroyed or damaged before the term of the prescribed 
retention periods.



Sec. 1220.3  Preservation of records.

    (a) All records may be preserved by any technology that is immune to 
alteration, modification, or erasure of the underlying data and will 
enable production of an accurate and unaltered paper copy.
    (b) Records not originally preserved on hard copy shall be 
accompanied by a statement executed by a person having personal 
knowledge of the facts indicating the type of data included within the 
records. One comprehensive statement may be executed in lieu of 
individual statements for multiple records if the type of data included 
in the multiple records is common to all such records. The records shall 
be indexed and retained in such a manner as will render them readily 
accessible. The company shall have facilities available to locate, 
identify and produce legible paper copies of the records.
    (c) Any significant characteristic, feature or other attribute that 
a particular medium will not preserve shall be clearly indicated at the 
beginning of the applicable records as appropriate.
    (d) The printed side of forms, such as instructions, need not be 
preserved for

[[Page 166]]

each record as long as the printed matter is common to all such forms 
and an identified specimen of the form is maintained on the medium for 
reference.

[50 FR 10775, Mar. 18, 1985, as amended at 56 FR 30874, July 8, 1991]



Sec. 1220.4  Companies going out of business.

    The records referred to in these regulations may be destroyed after 
business is discontinued and the company is completely liquidated. The 
records may not be destroyed until dissolution is final and all pending 
transactions and claims are completed. When a company is merged with 
another company under jurisdiction of the Board, the successor company 
shall preserve records of the merged company in accordance with these 
regulations.



Sec. 1220.5  Waiver of requirements of these regulations.

    A waiver from any provision of these regulations may be made by the 
Board upon its own initiative or upon submission of a written request by 
the company. Each request for waiver shall demonstrate that unusual 
circumstances warrant a departure from prescribed retention periods, 
procedures, or techniques, or that compliance with such prescribed 
requirements would impose an unreasonable burden on the company.



Sec. 1220.6  Schedule of records and periods of retention.

    The following schedule shows periods that designated records shall 
be preserved. The descriptions specified under the various general 
headings are for convenient reference and identification, and are 
intended to apply to the items named regardless of what the records are 
called in individual companies and regardless of the record media. The 
retention periods represent the prescribed number of years from the date 
of the document and not calendar years. Records not listed below shall 
be retained as determined by the management of each company.

              Schedule of Records and Periods of Retention
------------------------------------------------------------------------
          Item and category of records               Retention period
------------------------------------------------------------------------
                        A. Corporate and General
1. Incorporation and reorganization:
    (a) Charter or certificate of incorporation   Note A.
     and amendments.
    (b) Legal documents related to mergers,           Do.
     consolidations, reorganization,
     receiverships and similar actions which
     affect the identity or organization of the
     company.
2. Minutes of Directors, Executive Committees,        Do.
 Stockholders and other corporate meetings.
3. Titles, franchises and authorities:
    (a) Certificates of public convenience and    Until expiration or
     necessity issued by regulating bodies.        cancellation.
    (b) Operating authorizations and exemptions       Do.
     to operate.
    (c) Copies of formal orders of regulatory     Note A.
     bodies served upon the company.
    (d) Deeds, charters, and other title papers.  Until disposition of
                                                   property.
    (e) Patents and patent records..............  Note A.
4. Annual reports or statements to stockholders.  3 years.
5. Contracts and agreements:
    (a) Service contracts, such as for            Until expiration or
     operational management, accounting,           termination plus 3
     financial or legal services, and agreements   years.
     with agents.
    (b) Contracts and other agreements relating       Do.
     to the construction, acquisition or sale of
     real property and equipment except as
     otherwise provided in (a) above.
    (c) Contracts for the purchase or sale of     Until expiration.
     material and supplies except as provided in
     (a) above.
    (d) Shipping contracts for transportation or      Do.
     caretakers of freight.
    (e) Contracts with employees and employee     Until expiration.
     bargaining groups.
    (f) Contracts, leases and agreements, not     Until expiration or
     specifically provided for in this section.    termination plus 1
                                                   year.
6. Accountant's auditor's, and inspector's
 reports:
    (a) Certifications and reports of             3 years
     examinations and audits conducted by public
     accountants.
    (b) Reports of examinations and audits            Do.
     conducted by internal auditors, time
     inspectors, and others.
7. Other: (See Note A)
                               B. Treasury
1. Capital stock records:
    (a) Capital stock ledger....................  Note A.
    (b) Capital stock certificates, records of        Do.
     or stubs of.
    (c) Stock transfer register.................      Do.

[[Page 167]]

 
2. Long-term debt records:
    (a) Bond indentures, underwritings,           Until redemption plus
     mortgages, and other long-term credit         3 years.
     agreements.
    (b) Registered bonds and debenture ledgers..      Do.
    (c) Stubs or similar records of bonds or      Note A.
     other long-term debt issued.
3. Authorizations from regulatory bodies for          Do.
 issuance of securities including applications,
 reports, and supporting papers.
4. Records of securities owned, in treasury, or   Until the securities
 held by custodians, detailed ledgers and          are sold, redeemed or
 journals, or their equivalent.                    otherwise disposed
                                                   of.
5. Other: (See Note A)
                       C. Financial and Accounting
1. Ledgers:
    (a) General and subsidiary ledgers with       Until discontinuance
     indexes.                                      of use plus 3 years.
    (b) Balance sheets and trial balance sheets   3 years.
     of general and subsidiary ledgers.
2. Journals:
    (a) General journals........................  Until discontinuance
                                                   of use plus 3 years.
    (b) Subsidiary journals and any supporting    3 years.
     data, except as otherwise provided for,
     necessary to explain journal entries.
3. Cash books:
    (a) General cash books......................  Until discontinuance
                                                   of use plus 3 years.
    (b) Subsidiary cash books...................  3 years.
4. Vouchers:
    (a) Voucher registers, indexes, or                Do.
     equivalent.
    (b) Paid and canceled vouchers, expenditure       Do.
     authorizations, detailed distribution
     sheets and other supporting data including
     original bills and invoices, if not
     provided for elsewhere.
    (c) Paid drafts, paid checks, and receipts    3 years.
     for cash paid out.
5. Accounts receivable:
    (a) Record or register of accounts            3 years after
     receivable, indexes thereto, and summaries    settlement.
     of distribution.
    (b) Bills issued for collection and               Do.
     supporting data.
    (c) Authorization for writing off             1 year.
     receivables.
    (d) Reports and statements showing age and        Do.
     status of receivables.
6. Records of accounting codes and instructions.  3 years after
                                                   discontinuance.
7. Other: (Note A)
                       D. Property and Equipment1
Note.-- All accounts, records, and memoranda
 necessary for making a complete analysis of the
 cost or value of property shall be retained for
 the periods shown. If any of the records
 elsewhere provided for in this schedule are of
 this character, they shall be retained for the
 periods shown below, regardless of any lesser
 retention period assigned0
1. Property records:
    (a) Records which maintain complete           3 years after
     information on cost or other value of all     disposition of
     real and personal property or equipment.      property.
    (b) Records of additions and betterments          Do.
     made to property and equipment.
    (c) Records pertaining to retirements and         Do.
     replacements of property and equipment.
    (d) Records pertaining to depreciation......      Do.
    (e) Records of equipment number changes.....      Do.
    (f) Records of motor and engine changes.....      Do.
    (g) Records of equipment lightweighed and     Only current or latest
     stenciled.                                    records.
2. Engineering records of property changes        3 years after
 actually made.                                    disposition of
                                                   property.
3. Other: (Note A)
                        E. Personnel and Payroll
1. Personnel and payroll records................  1 year (Note A).
                         F. Insurance and Claims
1. Insurance records:
    (a) Schedules of insurance against fire,      Until expiration plus
     storms, and other hazards and records of      1 year.
     premium payments.
    (b) Records of losses and recoveries from     1 year after
     insurance companies and supporting papers.    settlement.
    (c) Insurance policies......................  Until expiration of
                                                   coverage plus 1 year.
2. Claims records:
    (a) Claim registers, card or book indexes,    1 year after
     and other records which record personal       settlement.
     injury, fire and other claims against the
     company, together with all supporting data.
    (b) Claims registers, card or book indexes,       Do.
     and other records which record overcharges,
     damages, and other claims filed by the
     company against others, together with all
     supporting data.
    (c) Records giving the details of             3 years.
     authorities issued to agents, carriers, and
     others for participation in freight claims.
    (d) Reports, statements and other data            Do.
     pertaining to personal injuries or damage
     to property when not necessary to support
     claims or vouchers.

[[Page 168]]

 
    (e) Reports, statements, tracers, and other   1 year.
     data pertaining to unclaimed, over, short,
     damaged, and refused freight, when not
     necessary to support claims or vouchers.
    (f) Authorities for disposal of unclaimed,    3 years.
     damaged, and refused freight.
3. Other: (See Note A)
                                G. Taxes
1. Taxes. (Note A)
                         H. Purchases and Stores
1. Purchases and stores. (Note A)
                    I. Shipping and Agency Documents
1. Bills of lading and releases:
    (a) Consignors' shipping orders, consignors'  1 year.
     shipping tickets, and copies of bills of
     lading freight bills from other carriers
     and other similar documents furnished the
     carrier for movement of freight.
    (b) Shippers' order-to-notify bills of            Do.
     lading taken up and cancelled.
2. Freight waybills:
    (a) Local waybills..........................      Do.
    (b) Interline waybills recieved from and          Do.
     made to other carriers.
    (c) Company freight waybills................      Do.
    (d) Express waybills........................      Do.
3. Freight bills and settlements:
  (a) Paid copy of freight bill retained to
   support receipt of freight charges:
    (1) Bus express freight bills provided no         Do.
     claim has been filed.
    (2) All other freight bills.................      Do.
  (b) Paid copy of freight bill retained to
   support payment of freight charges to other
   carriers:
    (1) Bus express freight bills provided no         Do.
     claim has been filed.
    (2) All other freight bills.................      Do.
  (c) Records of unsettled freight bills and      1 year after
   supporting papers.                              disposition.
  (d) Records and reports of correction notices.  1 year.
4. Other freight records:
    (a) Records of freight received, forwarded,       Do.
     and delivered.
    (b) Notice to consignees of arrival of            Do.
     freight; tender of delivery.
5. Agency records (to include conductors,
 pursers, stewards, and others):
    (a) Cash books..............................      Do.
    (b) Remittance records, bank deposit slips        Do.
     and supporting papers.
    (c) Balance sheets and supporting papers....      Do.
    (d) Statements of corrections in agents'          Do.
     accounts.
    (e) Other records and reports pertaining to       Do.
     ticket sales, baggage handled,
     miscellaneous collections, refunds,
     adjustments, etc.
                            J. Transportation
1. Records pertaining to transportation of
 household goods:
    (a) Estimate of charges.....................  1 year.
    (b) Order for service.......................      Do.
    (c) Vehicle-load manifest...................      Do.
    (d) Descriptive inventory...................      Do.
2. Records and reports pertaining to operation
 of marine and floating equipment:
    (a) Ship log................................  3 years.
    (b) Ship articles...........................      Do.
    (c) Passenger and room list.................      Do.
    (d) Floatmen's barge, lighter, and escrow     2 years.
     captain's reports, demurrage records,
     towing reports and checks sheets.
3. Car distribution and movement-railroads only:
    (a) Records of car allotment and                  Do.
     distribution.
    (b) Records of cars ordered, furnished and        Do.
     loaded.
    (c) Records showing dates and numbers of          Do.
     trains, initials and number of cars,
     movement of cars, and mileage of cars and
     trains.
    (d) Report of cars interchanged with              Do.
     connecting lines.
    (e) Reports of unfilled car orders..........  1 year.
    (f) Per diem and mileage reports made and     2 years.
     received, including reclaims and
     discrepancy and adjustment reports.
    (g) Demurrage and storage records...........      Do.
4. Dispatchers' sheets, registers, and other      3 years
 records pertaining to movement of
 transportation equipment.
5. Import and export records including bonded     2 years.
 freight and steamship engagements.
6. Records, reports, orders and tickets           3 years.
 pertaining to weighting of freight.
7. Records of loading and unloading of            2 years.
 transportation equipment.
8. Records pertaining to the diversion or             Do.
 reconsignment of freight, including requests,
 tracers, and correspondence.
9. Other: (See Note A)
                          K. Tariffs and Rates
1. Official file copies of tariffs,               3 years after
 classifications, division sheets, and circulars   expiration or
 relative to the transportation of persons or      cancellation.
 property.

[[Page 169]]

 
2. Authorities and supporting papers for          3 years.
 transportation of property or passengers free
 or at reduced rates.
3. Records and documents required by provisions   2 years.
 of Sec.  1253.20 to be maintained.
              L. Supporting Data for Reports and Statistics
1. Supporting data for reports filed with the
 Surface Transportation Board and regulatory
 bodies:
    (a) Supporting data for annual financial,     3 years.
     operating and statistical reports.
    (b) Supporting data for periodical reports        Do.
     of operating revenues, expenses, and income.
    (c) Supporting data for reports detailing         Do.
     use of proceeds from issuance or sale of
     company securities.
    (d) Supporting data for valuation inventory   3 years after
     reports and records. This includes related    disposition of the
     notes, maps and sketches, underlying          property.
     engineering, land, and accounting reports,
     pricing schedules, summary or collection
     sheets, yearly reports of changes and other
     miscellaneous data, all relating to the
     valuation of the company's property by the
     Surface Transportation Board or other
     regulatory body.
2. Supporting data for periodical reports of      3 years.
 accidents, inspections, tests, hours of
 service, repairs, freight car locations, etc.
3. Supporting data for periodical statistical of      Do.
 operating results or performance by tonnage,
 mileage, passengers carried, piggyback traffic,
 commodities, costs, analyses of increases and
 decreases, or otherwise.
                            M. Miscellaneous
1. Index of records.............................  Until revised as
                                                   record structure
                                                   changes.
2. Statement listing records prematurely          For the remainder of
 destroyed or lost.                                the period as
                                                   prescribed for
                                                   records destroyed.
------------------------------------------------------------------------
Note A: Records referenced to this note shall be maintained as
  determined by the designated records supervisory official. Companies
  should be mindful of the record retention requirements of the Internal
  Revenue Service, Securities and Exchange Commission, state and local
  jurisdictions and other regulatory agencies. Companies shall exercise
  reasonable care in choosing retention periods, and the choice of
  retention periods shall reflect past experiences, company needs,
  pending litigation, and regulatory requirements.

[50 FR 10775, Mar. 18, 1985, as amended at 51 FR 22083, June 18, 1986]



PARTS 1240-1259--REPORTS--Table of Contents




    Note: The report forms prescribed by parts 1241-1259 are available 
upon request from the Office of the Secretary, Surface Transportation 
Board, Washington, DC 20423.



PART 1241--ANNUAL, SPECIAL, OR PERIODIC REPORTS--CARRIERS SUBJECT TO PART I OF THE INTERSTATE COMMERCE ACT--Table of Contents




Sec.
1241.1  Common carriers.
1241.2  Reporting companies defined.
1241.11  Annual reports of class I railroads.
1241.15  Railroad classification survey form.

    Authority: 49 U.S.C. 11145.
    Note: The report forms prescribed by part 1241 are available upon 
request from the Office of the Secretary, Surface Transportation Board, 
Washington, DC 20423.



Sec. 1241.1  Common carriers.

    All common carriers subject to the provisions of Part I of 
Interstate Commerce Act, as amended, and the owners of all railroads 
engaged in interstate commerce as therein defined, are hereby required 
hereafter to file in the office of the Board on or before the 31st day 
of March in each year, reports covering the period of 12 months ending 
with the 31st day of December preceding said date, giving the 
particulars heretofore called for in the annual reports required by the 
Board of said carriers and owners of railroads.

[32 FR 20456, Dec. 20, 1967]



Sec. 1241.2  Reporting companies defined.

    (a) Every common carrier by rail which is required by the act to 
regulate commerce to file with the Board any tariff or schedule of 
rates, fares, or charges, or any concurrence in such tariff or schedule, 
shall be required to keep operating accounts and to file an annual 
operating report unless specifically excused by the Board.
    (b) Every railway corporation owning but not operating a railway 
used in interstate or foreign commerce shall be required to file with 
the Board an annual nonoperating report unless relieved therefrom under 
the provisions of rule following.

[[Page 170]]

    (c) Any actually existing inactive corporation coming within the 
scope of rule given above may be relieved from the requirements of that 
rule if it has no outstanding stocks or obligations not held by or for 
its controlling corporation and the controlling corporation reports for 
the inactive corporation such facts as the Board may require to be 
reported.
    (d) Reports of a controlling corporation and its controlled 
corporations must exclude duplications in respect of investments in 
railway plant and equipment and in respect of securities outstanding.

[32 FR 20456, Dec. 20, 1967, as amended at 46 FR 9115, Jan. 28, 1981]



Sec. 1241.11  Annual reports of class I railroads.

    (a) Commencing with reports for the year ended December 31, 1973, 
and thereafter, until further order, all line-haul railroad companies of 
class I, as defined in Sec. 1240.1 of this chapter, subject to section 
20, Part I of the Interstate Commerce Act, are required to file annual 
reports in accordance with Railroad Annual Report Form R-1. Such annual 
report shall be filed in duplicate in the office of the Bureau of 
Accounts, Surface Transportation Board, Washington, DC 20423, on or 
before March 31 of the year following the year which is being reported.
    (b) [Reserved]

(49 U.S.C. 220, 313, 412 and 10321; 5 U.S.C. 553)

[38 FR 32920, Nov. 29, 1973, as amended at 41 FR 21354, May 25, 1976; 42 
FR 1475, Jan. 7, 1977; 44 FR 65402, Nov. 13, 1979]



Sec. 1241.15  Railroad classification survey form.

    Commencing with the year ending December 31, 1982, and thereafter, 
until further order, all railroad companies not required to file an 
Annual Report (Form R-1) shall compute their adjusted revenues using the 
railroad revenue deflator formula. If there is a change in a carrier's 
classification the survey form shall be filed with the Bureau of 
Accounts, Surface Transportation Board, Washington, DC 20423, on or 
before March 31.

[48 FR 2544, Jan. 20, 1983]



PART 1242--SEPARATION OF COMMON OPERATING EXPENSES BETWEEN FREIGHT SERVICE AND PASSENGER SERVICE FOR RAILROADS 1 --Table of Contents



---------------------------------------------------------------------------

    1  The accounts mentioned in this part refer to and agree with 
part 1201 of this chapter.
---------------------------------------------------------------------------

                          List of Instructions

Sec.
1242.00  Separation of common operating expenses.

                                 General

1242.01  Expenses solely related to freight service and passenger 
          service.
1242.02  Common expenses.
1242.03  Made by accounting divisions.
1242.04  Special tests.
1242.05  Operating expense account number notation.
1242.06  Instructions for separation.

                 Operating Expenses--Way and Structures

1242.10  Administration--track (account XX-19-02).
1242.11  Administration--bridges and buildings (account XX-19-03).
1242.12  Administration--signals (account XX-19-04).
1242.13  Administration--communications (account XX-19-05).
1242.14  Administration--other (account XX-19-06).
1242.15  Roadway, tunnels and subways, bridges and culverts, ties, 
          rails, other track material, ballast, track laying and 
          surfacing, and road property damaged (accounts XX-17-10 to XX-
          18-12, inclusive; 21-17-13 to 21-18-16, inclusive, XX-17-17, 
          XX-18-17, XX-17-48, and XX- 18-48).
1242.16  Road property damaged--other (account XX-19-48).
1242.17  Signals and interlockers (accounts XX-17-19 and XX-18-19).
1242.18  Communication systems (account XX-19-20).
1242.19  Electric power systems (account XX-19-21).
1242.20  Highway grade crossings (accounts XX-17-22 and XX-18-22).
1242.21  Station and office buildings (account XX-19-23).
1242.22  Shop buildings--locomotives (account XX-19-24).
1242.23  Shop buildings--freight cars (account XX-13-25).
1242.24  Shop buildings--other equipment (account XX-19-26).
1242.25  Locomotive servicing facilities (account XX-19-27).

[[Page 171]]

1242.26  Miscellaneous buildings and structures (account XX-19-28).
1242.27  Coal marine terminals, ore marine terminals, TOFC/COFC 
          terminals, other marine terminals, motor vehicle loading and 
          distribution facilities, and facilities for other specialized 
          service operations (accounts XX-13-29 to XX-13-35, inclusive).
1242.28  Roadway machines, small tools and supplies, and snow removal 
          (accounts XX-19-36 to XX-19-38, inclusive).
1242.29  Fringe benefits (accounts 12-17-00, 12-18-00, 12-19-00).
1242.30  Dismantling retired road property and depreciation (accounts 
          XX-17-39, XX-18-39, XX-19-39, 62-17-00, 62-18-00, and 62-19-
          00).
1242.31  Lease rentals--debit and credit and other rents--debit and 
          credit (accounts 31-17-00, 31-18-00, 31-19-00, 32-17-00, 32-
          18-00, 32-19-00, 35-17-00, 35-18-00, 35-19-00, 36-17-00, 36-
          18-00, and 36-19-00).
1242.32  Joint facility rents--debit and credit and joint facility--
          debit and credit (accounts 33-17-00, 33-18-00, 33-19-00, 34-
          17-00, 34-18-00, 34-19-00, 37-17-00, 37-18-00, 37-19-00, 38-
          17-00, 38-18-00, and 38-19-00).
1242.33  Other expenses and casualties and insurance (accounts XX-17-99, 
          XX-18-99, XX-19-99, 50-17-00, 50-18-00, and 50-19-00).

                      Operating Expenses--Equipment

                               locomotives

1242.34  Administration (account XX-26-01).
1242.35  Repair and maintenance (account XX-26-41).
1242.36  Machinery repair and equipment damaged (accounts XX-26-40 and 
          XX-26-48).
1242.37  Dismantling retired property and depreciation (accounts XX-26-
          39 and 62-26-00).
1242.38  Fringe benefits (account 12-26-00).
1242.39  Lease rentals--debit and credit, other rents--debit and credit, 
          and repairs billed to others (accounts 31-26-00, 32-26-00, 35-
          26-00, 36-26-00, and 40-26-98).
1242.40  Joint facility rents--debit and credit, and joint facility--
          debit and credit (accounts 33-26-00, 34-26-00, 37-26-00, and 
          38-26-00).
1242.41  Other and casualties and insurance (accounts XX-26-99 and 50-
          26-00).

                              freight cars

1242.42  Administration, repair and maintenance, machinery repair, 
          equipment damaged, dismantling retired property, fringe 
          benefits, other casualties and insurance, lease rentals, joint 
          facility rents, other rents, depreciation, joint facility, 
          repairs billed to others, and other (accounts XX-22-01, XX-22-
          42, XX-22-40, XX-22-48, XX-22-39, 12-22-00, 50-22-00, 31-22-00 
          to 38-22-00 inclusive, 62-22-00, 40-22-98, and XX-22-99).

                             other equipment

1242.43  Administration (account XX-27-01).
1242.44  Trucks, trailers, and containers (revenue service) and floating 
          equipment (revenue service) (accounts XX-23-43 and XX-23-44).
1242.45  Passenger and other revenue equipment (account XX-27-45).
1242.46  Computers and data processing equipment (account XX-27-46).
1242.47  Machinery (account XX-27-40).
1242.48  Work and other non-revenue equipment (account XX-27-47).
1242.49  Equipment damaged (account XX-27-48).
1242.50  Fringe benefits (account 12-27-00).
1242.51  Dismantling retired property and depreciation (accounts XX-27-
          39 and 62-27-00).
1242.52  Lease rentals--debit and credit, other rents--debit and credit, 
          repairs billed to others--credit (accounts 31-27-00, 32-27-00, 
          35-27-00, 36-27-00, and 40-27-98).
1242.53  Joint facility rents--debit and credit and joint facility--
          debit and credit (accounts 33-27-00, 34-27-00, 37-27-00, and 
          38-27-00).
1242.54  Other and casualties and insurance (accounts XX-27-99 and 50-
          27-00).

                   Operating Expenses--Transportation

                            train operations

1242.55  Administration (account XX-51-01).
1242.56  Engine crews and train crews (accounts XX-51-56 and XX-51-57).
1242.57  Dispatching trains (account XX-51-58).
1242.58  Operating signals and interlockers, operating drawbridges, 
          highway crossing protection (accounts XX-51-59, XX-51-60, and 
          XX-51-61).
1242.59  Train inspection and lubrication (account XX-51-62).
1242.60  Locomotive fuel, electric power purchased/produced for motive 
          power, and servicing locomotives (accounts XX-51-67, XX-51-68, 
          and XX-51-69).
1242.61  Freight lost or damaged--solely related (to train) (account 51-
          51-00).
1242.62  Clearing wrecks (account XX-51-63).
1242.63  Fringe benefits (account 12-51-00).
1242.64  Joint facility--debit and credit (accounts 37-51-00 and 38-51-
          00).
1242.65  Other and casualties and insurance (accounts XX-51-99 and 50-
          51-00).

                             yard operations

1242.66  Administration (account XX-52-01).
1242.67  Switch crews; controlling operations; yard and terminal 
          clerical; locomotive fuel; electric power purchased/

[[Page 172]]

          produced for motive power; operating switches, signals, 
          retarders, and humps; and servicing locomotives (accounts XX-
          52-64, XX-52-65, XX-52-66, XX-52-59, XX-52-67, XX-52-68, and 
          XX-52-69).
1242.68  Freight lost or damaged--solely related (to yard) (account 51-
          52-00).
1242.69  Clearing wrecks (account XX-52-63).
1242.70  Fringe benefits (account 12-52-00).
1242.71  Joint facility--debit and credit (accounts 37-52-00 and 38-52-
          00).
1242.72  Other and casualties and insurance (accounts XX-52-99 and 50-
          52-00).

                    train and yard operations common

1242.73  Cleaning car interiors and freight lost and damaged--all other 
          (accounts XX-53-70 and 51-53-00).
1242.74  Adjusting and transferring loads, and car loading devices and 
          grain doors (accounts XX-33-71 and XX-33-72).
1242.75  Fringe benefits (account 12-53-00).

                     specialized service operations

1242.76  Administration; pickup and delivery, marine line haul and rail 
          substitute service; loading, unloading and local marine; 
          protective services; freight lost or damaged--solely related; 
          fringe benefits; casualties and insurance; joint facility, and 
          other (accounts XX-34-01, XX-34-73, XX-34-74, XX-34-75, 51-34-
          00, 12-34-00, 50-34-00, 37-34-00, 38-34-00, and XX-34-99).

                    administrative support operations

1242.77  Administration (account XX-55-01).
1242.78  Employees performing clerical and accounting functions, and 
          loss and damage claims processing (accounts XX-55-76 and XX-
          55-78).
1242.79  Communication systems operations (account XX-55-77).
1242.80  Fringe benefits (account 12-55-00).
1242.81  Joint facility--debit and credit (accounts 37-55-00 and 38-55-
          00).
1242.82  Other and casualties and insurance (accounts XX-55-99 and 50-
          55-00).

                           Operating Expenses

                       general and administration

1242.83  Officers--general superintendence; accounting, auditing and 
          finance; management services and data processing; personnel 
          and labor relations; legal and secretarial; research and 
          development; writedown of uncollectible accounts; property 
          taxes; other taxes except on corporate income or payrolls; and 
          other (accounts XX-63-01, XX-63-86, XX-63-87, XX-63-91, XX-63-
          92, XX-63-94, 63-63-00, 64-63-00, 65-63-00, and XX-63-99).
1242.84  Marketing, sales, and public relations and advertising 
          (accounts XX-63-88, XX-63-89, and XX-63-93).
1242.85  Fringe benefits (account 12-63-00).
1242.86  Industrial development (account XX-61-90).
1242.87  Joint facility--debit and credit and casualties and insurance 
          (accounts 37-63-00, 38-63-00, and 50-63-00).

    Authority: 49 U.S.C. 721, 11142.

    Source: 43 FR 7637, Feb. 24, 1978, unless otherwise noted.
    Note: The report forms prescribed by part 1242 are available upon 
request from the Office of the Secretary, Surface Transportation Board, 
Washington, DC 20423.

                          List of Instructions



Sec. 1242.00  Separation of common operating expenses.

    (a) Commencing with annual reports for the year 1978 or for any 
portion thereof until further order, all class I railroad companies 
including class I switching and terminal companies (Sec. 1240.1 of this 
chapter) subject to section 20 of the Interstate Commerce Act as amended 
shall separate operating expenses common to both freight service and 
passenger service in accordance with the regulation in this part.
    (b) The carrier shall maintain records supporting its common 
operating expense apportionments to freight and passenger services. The 
carrier shall report common expense apportionments to the Board as 
required.

                                 General



Sec. 1242.01  Expenses solely related to freight service and passenger service.

    The Uniform System of Accounts for Railroad Companies (49 CFR part 
1201) requires that carriers assign directly to freight service or to 
passenger service, including allied services, the expenses, taxes, and 
purchased services incurred solely for the benefit of either freight or 
passenger service.



Sec. 1242.02  Common expenses.

    The Uniform System of Accounts also requires that carriers assign to 
common expense accounts the remaining expenses, taxes and purchased 
services which are not solely related to either freight or passenger 
service. The following instructions govern the separation of common 
expense accounts between freight and passenger services.

[[Page 173]]



Sec. 1242.03  Made by accounting divisions.

    The separation shall be made by accounting divisions, where such 
divisions are maintained, and the aggregate of the accounting divisions 
reported for the quarter and for the year.



Sec. 1242.04  Special tests.

    When the separation of common expense accounts between freight and 
passenger services is based upon special tests or service unit factors, 
such tests shall be made at sufficiently frequent intervals to represent 
actual operating conditions. The service unit factors used are those of 
the reporting period.



Sec. 1242.05  Operating expense account number notation.

    (a) The operating expense account numbers consist of a six-digit 
coding structure divided into three two-digit groups. The first two-
digit group denotes natural expenses; the second group denotes 
activities/subactivities for freight, passenger or common service; and 
the third group signifies applicable function assignment.
[GRAPHIC] [TIFF OMITTED] TC03MR91.050

    (b) For reporting purposes, four natural expense categories are 
utilized. The categories are: salaries and wages (account 11-XX-XX); 
material, tools, supplies, fuels and lubricants (account 21-XX-XX); 
purchased services (accounts 31-XX-XX to 41-XX-XX, inclusive); and 
general (accounts 61-XX-XX to 65-XX-XX, inclusive, 51-XX-XX, 52-XX-XX, 
53-XX-XX and 12-XX-XX).
    (c) The symbol ``XX'' in the first two-digit group is used 
throughout the separation instructions to denote more than one natural 
expense associated with the same activity/subactivity-function account 
structure. For reporting purposes, the natural expense account numbers 
represented by ``XX'' include:

11--Salaries and wages;
21--Materials, tools, supplies, fuels, and lubricants;
30 or 41--Purchased services:
    30--Summation of certain purchased service accounts;
    41--Other purchased services;
61--General.

    (d) The ``30'' natural expense designation indicates a summation of 
specific purchased service accounts that are reported in total rather 
than individually. The specific accounts under the way and structures 
activity except for administration functions include 39-1X-XX, repairs 
billed by others, Dr.; 40-1X-XX, repairs billed to others, cr.; and 41-
1X-XX, other purchased services. For the equipment activity excluding 
administration functions, the ``30'' designation denotes the summation 
of 39-2X-XX and 41-2X-XX.
    (e) The ``41'' natural expense designation (other purchased 
services) is the purchased service category of the ``XX'' code for the 
following:
    (1) Way and structures activity administration--function accounts,
    (2) Equipment activity administration--function accounts,
    (3) Transportation activity expense accounts, and
    (4) General and administration activity expense accounts.
    (f) The ``61'' general natural expense designation is applicable to 
all accounts with the ``XX'' symbol except transportation, train and 
yards accounts (XX-(33/43/53)-XX).
    (g) The natural expense account number ``50'' is used throughout the 
separation instructions to indicate the summation of accounts 52-XX-XX, 
Other casualties, and 53-XX-XX, Insurance, that are reported as one 
item, ``Casualties and Insurance,'' (50-XX-XX).
    (h) The number ``98'' in the function account group (last two 
digits) is used in the separation rules to designate the summation of a 
natural expense consisting of more than one functional assignment that 
is reported as one item. This includes Repairs Billed to Others, Cr.--
Equipment (40-2X-XX). For example, the locomotive subactivity contains 
accounts 40-(21/24/26)-40, 40-(21/24/26)-41, and 40-(21/24/26)-48 which 
are treated as 40-(21/24/26)-98.



Sec. 1242.06  Instructions for separation.

    (a) Certain instructions for separating common expense accounts 
(dependent accounts) between freight and passenger services base the 
allocation on

[[Page 174]]

the proportional freight/passenger separation of other common expense 
accounts (independent accounts). The dependent account is frequently 
identified by an ``XX'' symbol in the natural expense position (first 
two digits) with corresponding independent accounts also identified by 
the ``XX'' natural expense symbol. Unless otherwise stated, the 
applicable natural expense associated with ``XX'' symbol shall be the 
same for both the dependent and independent accounts.
    (b) To illustrate, Sec. 1242.10 provides instructions for separating 
common Way and Structures, Administration--Track accounts (dependent 
accounts) designated by XX-19-02. The separation is based on certain 
other common Way and Structures accounts including Roadway--Running, XX-
17-10, and Roadway--Switching, XX-18-10.
    (c) As Sec. 1242.05 states, the ``XX'' symbol denotes the following 
natural expenses for Way and Structures administration functions:

11--Salaries and wages,
21--Materials, tools, supplies, fuels, and lubricants,
41--Other purchased services, and
61--General.


These natural expenses shall be individually applied to the separation 
rules in Sec. 1242.10. In each case, the independent accounts providing 
the basis for freight/passenger separation of the dependent account 
shall have the same natural expense designation. For example, the basis 
of separating account 11-19-02, Salaries and Wages, Way and Structures, 
Administration--Track, would be based on certain independent accounts 
including 11-17/18-10, Salaries and Wages, Way and Structures, Running/
Switching, Repair and Maintenance, Roadway.

                 Operating Expenses--Way and Structures



Sec. 1242.10  Administration--track (account XX-19-02).

    Separate common administration--track expenses between freight and 
passenger services in the same proportion as the common expenses of the 
following accounts are separated between freight and passenger services:

Roadway:
    Running (XX-17-10)
    Switching (XX-18-10)
Ties:
    Running (21-17-13)
    Switching (21-18-13)
Rails:
    Running (21-17-14)
    Switching (21-18-14)
Other Track Materials:
    Running (21-17-15)
    Switching (21-18-15)
Ballast:
    Running (21-17-16)
    Switching (21-18-16)
Track Laying and Surfacing:
    Running (XX-17-17)
    Switching (XX-18-17)
Road Property Damaged:
    Running (XX-17-48)
    Switching (XX-18-48)
    Other (XX-19-48)
Dismantling Retired Road Property:
    Running (XX-17-39)
    Switching (XX-18-39)
    Other (XX-19-39)



Sec. 1242.11  Administration--bridges and buildings (account XX-19-03).

    Separate common administration--bridges and buildings expenses 
between freight and passenger services in the same proportion as the 
common expenses of the following accounts are separated between freight 
and passenger services:

Tunnels and Subways:
    Running (XX-17-11)
    Switching (XX-18-11)
Bridges and Culverts:
    Running (XX-17-12)
    Switching (XX-18-12)
Electric Power Systems (XX-19-21)
Station and Office Buildings (XX-19-23)
Shop Buildings:
    Locomotives (XX-19-24)
    Other Equipment (XX-19-26)
Locomotive Servicing Facilities (XX-19-27)
Miscellaneous Buildings and Structures (XX-19-28)



Sec. 1242.12  Administration--signals (account XX-19-04).

    Separate common administration--signals expenses between freight and 
passenger services in the same proportion as the common expenses of the 
following accounts are separated between freight and passenger services:

Signals and Interlockers:
    Running (XX-17-19)
    Switching (XX-18-19)

[[Page 175]]



Sec. 1242.13  Administration--communica- tions (account XX-19-05).

    Separate common administration--communications expenses between 
freight and passenger services in the same proportion as the common 
expenses of the following accounts are separated between freight and 
passenger services:

Communications Systems (XX-19-20)



Sec. 1242.14  Administration--other (account XX-19-06).

    Separate common administration--other expenses between freight and 
passenger services in the same proportion as the common expenses of the 
following accounts are separated between freight and passenger services:

Administration:
    Track (XX-19-02)
    Bridges and Buildings (XX-19-03)
    Signals (XX-19-04)
    Communications (XX-19-05)



Sec. 1242.15  Roadway, tunnels and subways, bridges and culverts, ties, 
rails, other track material, ballast, track laying and surfacing, and 

road property damaged (accounts XX-17-10 to XX-18-12 inclusive, 21-17-13 
to 21-18-16 inclusive, XX-17-17, XX-18-17, XX-17-48, and XX-18-
48).

    The expenses for running and switching subactivities shall be 
separated between freight service and passenger service as follows:
    (a) Switching tracks. (1) Yard: Expenses for yards used in common by 
freight and passenger services shall be apportioned on the basis of the 
respective switching locomotive unit-hours in the common yards.
    (2) Way: Where the tracks at any one location are used in common by 
both freight and passenger services, expenses may be assigned to that 
service which makes the dominant use of them.
    (b) Running tracks. The expenses of tracks used in common by both 
services shall be apportioned on the basis of gross ton-miles (including 
locomotive ton-miles) handled over these tracks in the respective 
services.



Sec. 1242.16  Road property damaged--other (account XX-19-48).

    Separate common expenses in proportion to the total common expenses 
assigned to freight/passenger from the following Way and Structures 
accounts:

Road Property Damaged--Running (XX-17-48)
Road Property Damaged--Switching (XX-18-48)



Sec. 1242.17  Signals and interlockers (accounts XX-17-19 and XX-18-19).

    Separate common expenses on the basis of the total train-hours in 
running service, and/or the yard-switching plus train switching hours in 
the switching service over the tracks on which the common signals and 
interlockers are used.



Sec. 1242.18  Communication systems (account XX-19-20).

    Separate common expenses on the basis of the common expense 
separation in:

Way and Structures--Administration--Track, Bridges and Culverts, and 
          Signals (accounts XX-19-02 to XX-19-04, inclusive)
Equipment--Administration--Locomotives and Other Equipment (accounts XX-
          26-01 and XX-27-01)
Transportation--Administration--Train, Yard, and Administrative Support 
          (accounts XX-51-01, XX-52-01, and XX-55-01)
Dispatching Trains (Account XX-51-58)



Sec. 1242.19  Electric power systems (account XX-19-21).

    Separate common expenses on basis of common expenses of electric 
power purchased or produced for motive power (accounts XX-51-68 and XX-
52-68).



Sec. 1242.20  Highway grade crossings (accounts XX-17-22 and XX-18-22).

    Separate running and switching common expenses according to 
distribution of the running and switching portions only of common 
expense accounts listed in Sec. 1242.10, Administration--Track (account 
XX-19-02).



Sec. 1242.21  Station and office buildings (account XX-19-23).

    If the sum of the direct freight and the direct passenger expenses 
is more

[[Page 176]]

than 50 percent of the total charges to this account for an accounting 
division, separate the common expenses on the basis of the directly 
assigned expenses in this account for the accounting division involved. 
If the sum of the direct freight and the direct passenger expenses does 
not aggregate to more than 50 percent of the total charges for an 
accounting division, the common expenses should be separated on the 
basis of special test. Where common expenses exist in an accounting 
division but the direct expenses are applicable to only one service, 
i.e., freight or passenger, the common expenses shall be separated on 
the basis of a special test. If the accounting is performed on a system 
basis rather than by accounting divisions, the common expenses shall be 
separated on the basis of a special study.



Sec. 1242.22  Shop buildings--locomotives (account XX-19-24).

    Separate common expenses according to distribution of common 
expenses in the following accounts:

Machinery Repair (XX-26-40)
Locomotive--Repair and Maintenance (XX-26-41)



Sec. 1242.23  Shop buildings--freight cars (account XX-13-25).

    These accounts pertain solely to freight service and contain no 
common expense for separation herein.



Sec. 1242.24  Shop buildings--other equipment (account XX-19-26).

    Assign directly to freight (or as particular facts suggest 
otherwise).



Sec. 1242.25  Locomotive servicing facilities (account XX-19-27).

    Separate common expenses according to distribution of common 
expenses in the following accounts:

Locomotive Fuel (XX-51-67 and XX-52-67)
Electric Power Purchased or Produced for Motive Power (XX-51-68 and XX-
52-68)
Servicing Locomotives (XX-51-69 and XX-52-69)



Sec. 1242.26  Miscellaneous building and structures (account XX-19-28).

    Separate common expenses as specific facts indicate or according to 
distribution of common expenses listed in Sec. 1242.10, Administration-
Track (account XX-19-02).



Sec. 1242.27  Coal marine terminals, ore marine terminals, TOFC/COFC 
terminals, other marine terminals, motor vehicle loading and distribution 

facilities, and facilities for other specialized service operations 
(accounts XX-13-29 to XX-13-35, inclusive).

    These accounts pertain solely to freight service and contain no 
common expenses for separation herein.



Sec. 1242.28  Roadway machines, small tools and supplies, and snow removal (accounts XX-19-36 to XX-19-38, inclusive).

    Separate common expenses according to distribution of common 
expenses listed in Sec. 1242.10, Administration--Track (account XX-19-
02).



Sec. 1242.29  Fringe benefits (accounts 12-17-00, 12-18-00, and 12-19-00).

    Separate common expenses in the running subactivity in the same 
proportion as the salaries and wages, way and structures, common 
expenses in all accounts with a designated running subactivity. Separate 
common expenses in the switching subactivity in the same proportion as 
the salaries and wages, way and structure, common expense accounts with 
a designated switching activity. Separate common expenses in the other 
subactivity in the same proportion as the salaries and wages, way and 
structures, common expenses in all accounts with a designated other 
subactivity.



Sec. 1242.30  Dismantling retired road property and depreciation (accounts XX-17-39, XX-18-39, XX-19-39, 62-17-00, 62-18-00, and 62-19-00).

    Separate common expenses in each account for each subactivity 
(running, switching and other) in proportion to the separation of common 
repair and maintenance expenses associated with the particular common 
properties depreciated and/or dismantled.

[[Page 177]]



Sec. 1242.31  Lease rentals--debit and credit and other rents--debit and credit (accounts 31-17-00, 31-18-00, 31-19-00, 32-17-00, 32-18-00, 32-19-00, 35-17-00, 
          35-18-00, 35-19-00, 36-17-00, 36-18-00, and 36-19-00).

    (a) Separate common debit expense accounts in each subactivity 
(running, switching and other) in proportion to the separation of solely 
related freight or passenger service in each account. If there are no 
solely related expenses in an account or if the solely related expenses 
are assignable entirely to freight or to passenger service, separate 
common debit expense accounts on the basis of the same percentages 
calculated for the separation of administration--other (account XX-19-
06).
    (b) Separate all common credit expense accounts on the same 
percentages calculated for the separation of administration--other 
(account XX-19-06).



Sec. 1242.32  Joint facility rents--debit and credit and joint facility--debit and credit (accounts 33-17-00, 33-18-00, 33-19-00, 34-17-00, 34-18-00, 34-19-00, 
          37-17-00, 37-18-00, 37-19-00, 38-17-00, 38-18-00, and 38-19-
          00).

    (a) Solely related (freight or passenger service) debit expense 
accounts in each subactivity (running, switching and other) shall be 
assigned according to the use made of each facility by the reporting 
carrier, regardless of the use by other carriers. Common debit expenses 
shall be separated on the basis of the percentage separations of the 
solely related expenses in each individual account. If there are no 
solely related expenses or if the solely related expenses are assigned 
entirely to freight or to passenger service, separate common debit 
expenses on the same percentages calculated for the separation of 
administrative--other (account XX-19-06).
    (b) Separate all common credit expense accounts on the same 
percentages calculated for the separation of administration--other 
(account XX-19-06).



Sec. 1242.33  Other expenses and casualties and insurance (accounts XX-17-99, XX-18-99, XX-19-99, 50-17-00, 50-18-00, and 50-19-00).

    Separate common expenses on the basis of the percentages calculated 
for the separation of administrative--other (account XX-19-06).

                      Operating Expenses--Equipment

                               locomotives



Sec. 1242.34  Administration (account XX-26-01).

    Separate common expenses according to distribution of common 
expenses in the following accounts:

Repair and Maintenance (XX-26-41)
Machinery Repair (XX-26-40)
Equipment Damage (XX-26-48)
Dismantling Retired Property (XX-26-39)



Sec. 1242.35  Repair and maintenance (account XX-26-41).

    (a) Where the carrier maintains records of the repairs by individual 
locomotive units or classes of locomotive units:
    (1) If individual locomotive units or classes of locomotive units 
are used exclusively in road-freight, road-passenger, yard-freight, or 
yard-passenger service, the separation shall be actual.
    (2) If individual locomotive units or classes or locomotive units 
are used interchangeably (common) in road-freight (including train-
switching), road passenger (including train switching), yard-freight or 
yard-passenger service, separate the heavy shop repairs between these 
services on the basis of run-out unit miles of individual locomotive 
units or classes of locomotive units since the previous shopping; and 
separate the cost of running repairs between such services on the basis 
of the miles run by the individual locomotive unit or class of 
locomotive unit in each service during the accounting period for which 
the separation is being made.
    (b) Where the carrier maintains records of heavy shop repair costs 
by individual locomotive units or classes

[[Page 178]]

of locomotive units, but does not maintain records of the cost of 
running repairs by individual locomotive units:
    (1) The heavy shop repairs shall be separated as indicated in 
paragraph (a) of this section.
    (2) The common expenses of running repairs shall be separated among 
road-freight (including train switching), road-passenger (including 
train switching), yard-freight and yard-passenger services on the basis 
of locomotive unit miles or locomotive ton-miles for the accounting 
period for which the separation is being made.
    (c) Where the carrier does not maintain records of either heavy shop 
repairs or running repairs by individual locomotive units or classes of 
locomotive units: The expenses shall be separated among road-freight 
service (including train-switching), road-passenger service (including 
train switching), yard freight, and yard-passenger services, on the 
basis of locomotive unit-miles or locomotive ton-miles for the 
accounting period for which the separation is being made.



Sec. 1242.36  Machinery repair and equipment damaged (accounts XX-26-40 and XX-26-48).

    Separate common expenses according to separation of common expenses 
in repair and maintenance (account XX-26-41).



Sec. 1242.37  Dismantling retired property and depreciation (accounts XX-26-39 and 62-26-00).

    Separate common expenses in each account in proportion to the 
separation of common repair and maintenance expenses associated with the 
particular common properties depreciated and/or dismantled.



Sec. 1242.38  Fringe benefits (account 12-26-00).

    Separate common expenses in proportion to the split of common 
salaries and wages in administration, locomotive repair and maintenance, 
machinery repair, equipment damaged, and dismantling retired road 
property (accounts 11-26-01, 11-26-41, 11-26-40, 11-26-48, and 11-26-
39).



Sec. 1242.39  Lease rentals--debit and credit, other rents--debit and credit, and repairs billed to others (accounts 31-26-00, 32-26-00, 35-26-00, 36-26-00 and 
          40-26-98).

    (a) Separate common debit expense accounts in proportion to the 
assignment of solely related freight or passenger service in each 
individual debit account. If there are no solely related expenses or if 
the solely related expenses are assigned entirely to freight or 
passenger service, separate common debit expense accounts on the same 
percentage basis calculated for the separation of administration 
(account XX-26-01).
    (b) Separate all common credit expense accounts on the same 
percentages calculated for the separation of administration (account XX-
26-01).



Sec. 1242.40  Joint facility rents--debit and credit, and joint facility--debit and credit (accounts 33-26-00, 34-26-00, 37-26-00 and 38-26-00).

    (a) Solely related freight and passenger debit expense accounts 
shall be assigned according to the use made of each facility by the 
reporting carrier, regardless of the use by other carriers. Common debit 
expenses shall be separated on the basis of the percentage separation of 
the solely related expenses; or if the solely related expenses are 
assigned entirely to freight or passenger service, separate common 
expenses on the same percentages calculated for the separation of 
administration (account XX-26-01).
    (b) Separate all common credit expense accounts on the same 
percentages calculated for the separation of administration (account XX-
26-01).



Sec. 1242.41  Other and casualties and insurance (accounts XX-26-99 and 50-26-00).

    Separate common expenses on the basis of percentages calculated for 
the separation of administration (account XX-26-01).

[[Page 179]]

                              freight cars



Sec. 1242.42  Administration, repair and maintenance, machinery repair, 
equipment damaged, dismantling retired property, fringe benefits, other 

casualties and insurance, lease rentals, joint facility rents, other rents, 
          depreciation, joint facility, repairs billed to others, and 
          other (accounts XX-22-01, XX-22-42, XX-22-40, XX-22-48, XX-22-
          39, 12-22-00, 50-22-00, 31-22-00 to 38-22-00 inclusive, 62-22-
          00, 40-22-98 and XX-22-99).

    These accounts pertain solely to freight service and contain no 
common expenses for separation herein.

                             other equipment



Sec. 1242.43  Administration (account XX-27-01).

    Separate common expenses according to freight/passenger separation 
of the following accounts:

Passenger and Other Revenue Equipment (XX-27-45)
Work and Other Non-Revenue Equipment (XX-27-47)



Sec. 1242.44  Trucks, trailers, and containers (revenue service) and floating equipment (revenue service) (accounts XX-23-43 and XX-23-44).

    These accounts pertain solely to freight service and contain no 
common expenses for separation herein.



Sec. 1242.45  Passenger and other revenue equipment (account XX-27-45).

    Separate as particular facts suggest.



Sec. 1242.46  Computers and data processing equipment (account XX-27-46).

    If the sum of the direct freight and the direct passenger expenses 
is more than 50 percent of the total charges to this account for an 
accounting division, separate the common expenses on the basis of the 
directly assigned expenses in this account for the accounting division 
involved. If the sum of the direct freight and the direct passenger 
expenses does not aggregate 50 percent of the total charges for an 
accounting division, the common expenses shall be separated on the basis 
of a special test. If common expenses exist in an accounting division 
but the direct expenses are applicable to only one service, i.e., 
freight or passenger, the common expenses shall be separated on the 
basis of a special test. If the accounting is performed on a system 
basis rather than by accounting divisions, follow the intent of the 
above instructions.



Sec. 1242.47  Machinery (account XX-27-40).

    Separate common expenses on the basis of the freight/passenger 
separation of administration (account XX-27-01).



Sec. 1242.48  Work and other non-revenue equipment (account XX-27-47).

    Separate common expenses according to distribution of common 
expenses in Way and structures--administration--other (account XX-19-
06).



Sec. 1242.49  Equipment damaged (account XX-27-48).

    Separate common expenses according to distribution of common 
expenses in machinery, passenger and other revenue equipment, computer 
and data processing equipment and work and other non-revenue equipment 
accounts (accounts XX-27-40, XX-27-45, XX-27-46, and XX-27-47).



Sec. 1242.50  Fringe benefits (account 12-27-00).

    Separate common expenses in proportion to the percentage separation 
of common salaries and wages in administration (account XX-27-01).



Sec. 1242.51  Dismantling retired property and depreciation (accounts XX-27-39 and 62-27-00).

    Separate common expenses in proportion to the separation of common 
repair and maintenance expenses associated with the particular common 
property depreciated and/or dismantled.

[[Page 180]]



Sec. 1242.52  Lease rentals--debit and credit, other rents--debit and credit, repairs billed to others--credit (accounts 31-27-00, 32-27-00, 35-27-00, 36-27-00, 
          and 40-27-98).

    (a) Separate common debit expense accounts in proportion to the 
separation of solely related (freight or passenger service) in each 
individual account. If there are no solely related expenses or if the 
solely related expenses are assignable entirely to freight or passenger 
service, separate common debit expense accounts on the same percentages 
calculated for the separation of administration (account XX-27-01).
    (b) Separate common credit expense accounts on the basis of the same 
percentages calculated for the separation of administration (account XX-
27-01).



Sec. 1242.53  Joint facility rents--debit and credit and joint facility--debit and credit (accounts 33-27-00, 34-27-00, 37-27-00 and 38-27-00).

    (a) Solely related freight and passenger service debit expense 
accounts shall be assigned according to the use made of each facility by 
the reporting carrier, regardless of the use made of the facility by 
other carriers. Common debit expense accounts shall be separated on the 
basis of the percentage separation of the solely related expenses in 
each individual account. If there are no solely related expenses or if 
the solely related expenses are assigned entirely to freight or 
passenger service, separate common expenses on the same percentages 
calculated for the separation of administration (account XX-27-01).
    (b) Separate all common credit expense accounts on the basis of the 
same percentages calculated for the separation of administration 
(account XX-27-01).



Sec. 1242.54  Other and casualties and insurance (accounts XX-27-99 and 50-27-00).

    Separate common expenses on the basis of the percentages calculated 
for the separation of administration (account XX-27-01).

                   Operating Expenses--Transportation

                            train operations



Sec. 1242.55  Administration (account XX-51-01).

    Separate common expenses according to distribution of common 
expenses in the following accounts:

Engine Crews (XX-51-56)
Train Crews (XX-51-57)
Dispatching Trains (XX-51-58)
Operating Signals and Interlockers (XX-51-59)
Operating Drawbridges (XX-51-60)
Highway Crossing Protection (XX-51-61)
Train Inspection and Lubrication (XX-51-62)
Locomotive Fuel (XX-51-67)
Electric Power Purchased/Produced for Motive Power (XX-51-68)
Servicing Locomotives (XX-51-69)
Clearing Wrecks (XX-51-63)



Sec. 1242.56  Engine crews and train crews (accounts XX-51-56 and XX-51-57).

    Separate common expenses on the basis of direct assignment or if 
there are no directly assignable expenses, separate on the basis of 
train hours, including train switching hours.



Sec. 1242.57  Dispatching trains (account XX-51-58).

    Separate common expenses on the basis of train hours, including 
train switching hours.



Sec. 1242.58  Operating signals and interlockers, operating drawbridges, highway crossing protection (accounts XX-51-59, XX-51-60 and XX-51-61).

    Separate common expenses on the basis of total train hours 
(including train switching hours) of the particular common operating 
divisions or track segment on which the common signals, interlockers, 
drawbridges and highway crossings are located.



Sec. 1242.59  Train inspection and lubrication (account XX-51-62).

    Separate common expenses on basis of directly assigned expenses. If 
there are no directly assignable expenses, separate on the basis of 
train miles.

[[Page 181]]



Sec. 1242.60  Locomotive fuel, electric power purchased/produced for motive power and servicing locomotives (accounts XX-51-67, XX-51-68 and XX-51-69).

    Separate common expenses in each account on basis of direct 
expenses. If there are no direct expenses, separate on the basis of 
train hours and way-switching service hours.



Sec. 1242.61  Freight lost or damaged--solely related (to train) (account 51-51-00).

    Separate common expenses on the basis of proportion of the solely 
related expenses assigned to freight and passenger services or on the 
basis of a special study.



Sec. 1242.62  Clearing wrecks (account XX-51-63).

    Separate common expenses according to specific circumstances.



Sec. 1242.63  Fringe benefits (account 12-51-00).

    Separate common expenses in proportion to the percentage separation 
calculated for the salaries and wages account--administration (account 
11-51-01).



Sec. 1242.64  Joint facility--debit and credit (accounts 37-51-00 and 38-51-00).

    (a) Solely related freight and passenger service debit expense 
accounts shall be assigned according to the use made of each facility by 
the reporting carrier, regardless of the use made of the facility by 
other carriers. Common debit expense accounts shall be separated on the 
basis of the percentage separation of the solely related expenses. If 
there are no solely related expenses or if the solely related expenses 
are assigned entirely to either freight or passenger service, separate 
common expenses on the same percentages calculated for the separation of 
administration (account XX-51-01).
    (b) Separate common credit expense accounts on the basis of the 
percentages calculated for the separation of administration (account XX-
51-01).



Sec. 1242.65  Other and casualties and insurance (accounts XX-51-99 and 50-51-00).

    Separate common expenses on the basis of the percentages calculated 
for the separation of administration (account XX-51-01).

                             yard operations



Sec. 1242.66  Administration (account XX-52-01).

    Separate common expenses according to distribution of common 
expenses in the following accounts:

Switch Cews (XX-52-64)
Controlling Operations (XX-52-65)
Yard and Terminal Clerical (XX-52-66)
Operating Switches, Signals, Retarders and Humps (XX-52-59)
Locomotive Fuel (XX-52-67)
Servicing Locomotives (XX-52-69)
Electric Power Purchased/Produced for Motive Power (XX-52-68)
Clearing Wrecks (XX-52-63)



Sec. 1242.67  Switch crews; controlling operations; yard and terminal 
clerical; locomotive fuel; electric power purchased/produced for motive 

power; operating switches signals, retarders, and humps; and servicing 
          locomotives (accounts XX-52-64, XX-52-65, XX-52-66, XX-52-59, 
          XX-52-67, XX-52-68 and XX-52-69).

    Separate common expenses on the basis of the distribution of freight 
and passenger yard-switching hours in those yards common to both freight 
and passenger services.



Sec. 1242.68  Freight lost or damaged--solely related (to yard) (account 51-52-00).

    Separate common expenses on the basis of the solely related freight 
and passenger expenses or on the basis of a special study.



Sec. 1242.69  Clearing wrecks (account XX-52-63).

    Separate common expenses according to specific circumstances.



Sec. 1242.70  Fringe benefits (account 12-52-00).

    Separate common expenses in proportion to the percentage separation 
calculated for the salaries and wages administration account (account 
11-52-01).

[[Page 182]]



Sec. 1242.71  Joint facility--debit and credit (accounts 37-52-00 and 38-52-00).

    (a) Solely related freight and passenger service debit expenses 
accounts shall be assigned according to the use made of each facility by 
the reporting carriers, regardless of the use made of the facility by 
other carriers. Common debit expenses shall be separated on the basis of 
the percentage separation of the solely related expenses. If there are 
no solely related expenses or if the solely related expenses are 
assigned entirely to freight or passenger service, separate common 
expenses on the same percentages calculated for the separation of 
administration (account XX-52-01).
    (b) Separate common credit expense accounts on the basis of the 
percentages calculated for the separation of administration (account XX-
51-01).



Sec. 1242.72  Other and casualties and insurance (accounts XX-52-99 and 50-52-00).

    Separate common expenses on the basis of the percentages calculated 
for the separation of administration (account XX-52-01).

                    train and yard operations common



Sec. 1242.73  Cleaning car interiors and freight lost and damaged--all other (accounts XX-53-70 and 51-53-00).

    Separate common expenses on basis of solely related freight and 
passenger expenses or special study.



Sec. 1242.74  Adjusting and transferring loads, and car loading devices and grain doors (accounts XX-33-71 and XX-33-72).

    These accounts pertain solely to freight service and contain no 
common expenses for separation herein.



Sec. 1242.75  Fringe benefits (account 12-53-00).

    Separate common expenses in proportion to the freight/passenger 
separation calculated for the salaries and wages--cleaning car interiors 
common account (account 11-53-70).

                     specialized service operations



Sec. 1242.76  Administration; pickup and delivery, marine line haul, and 
rail substitute service; loading, unloading and local marine; protective 

services; freight lost or damaged--solely related; fringe benefits; 
          casualties and insurance; joint facility, and other (accounts 
          XX-34-01, XX-34-73, XX-34-74, XX-34-75, 51-34-00, 12-34-00, 
          50-34-00. 37-34-00, 38-34-00 and XX-34-99).

    These accounts pertain solely to freight service and contain no 
common expenses for separation herein.

                    administrative support operations



Sec. 1242.77  Administration (account XX-55-01).

    Separate common expenses in the same proportion as common expenses 
are separated in employees performing clerical and accounting functions, 
communication systems operations and loss and damage claims processing 
(accounts XX-55-76, XX-55-77 and XX-55-78).



Sec. 1242.78  Employees performing clerical and accounting functions, and loss and damage claims processing (accounts XX-55-76 and XX-55-78).

    If the sum of the direct freight and the direct passenger expenses 
is more than 50 percent of the total charges to this account for an 
accounting division, separate the common expenses on the basis of the 
directly assigned expenses in this account for the particular accounting 
division. If the sum of the direct freight and the direct passenger 
expenses does not aggregate 50 percent of the total charges for an 
accounting division, the common expenses shall be separated on the basis 
of special test. If common expenses exist in an accounting division but 
the direct expenses are applicable to only one service, i.e., freight or 
passenger, and even though the direct charges are over 50 percent of the 
total charges, the common expenses shall be separated on the basis of a 
special test. If the accounting is performed on a system basis rather 
than by accounting division, follow the intent of the above 
instructions.

[[Page 183]]



Sec. 1242.79  Communication systems operations (account XX-55-77).

    Separate common expenses on bases of the percentages calculated for 
the separation of Communication Systems (account XX-19-20), 
Sec. 1242.18.



Sec. 1242.80  Fringe benefits (account 12-55-00).

    Separate common expenses in proportion to the percentage separation 
calculated for the salaries and wages--administration account (account 
11-55-01).



Sec. 1242.81  Joint facility--debit and credit (accounts 37-55-00 and 38-55-00).

    Solely related freight and passenger service debit expense accounts 
shall be assigned according to the use made of each facility by the 
reporting carriers, regardless of the use made of the facility by other 
carriers. Common debit expenses shall be separated on the basis of the 
percentage separation of the solely related expenses. If there are no 
solely related expenses or if the solely related expenses are assigned 
entirely to either freight or passenger service, separate common 
expenses on the same percentages calculated for the separation of 
administration (account XX-55-01).

Separate common credit expenses on the basis of the percentages 
calculated for the separation of administration (account XX-55-01).



Sec. 1242.82  Other and casualties and insurance (accounts XX-55-99 and 50-55-00).

    Separate common expenses on the basis of the percentages calculated 
for the separation of administration (account XX-55-01).

                           Operating Expenses

                       general and administration



Sec. 1242.83  Officers--general superintendence; accounting, auditing and 
finance; management services and data processing; personnel and labor 
relations; legal and secretarial; research and development; writedown of 

          uncollectible accounts; property taxes; other taxes except on 
          corporate income or payrolls; and other (accounts XX-63-01, 
          XX-63-86, XX-63-87, XX-63-91, XX-63-92, XX-63-94, 63-63-00, 
          64-63-00, 65-63-00 and XX-63-99).

    Separate common expenses in proportion to the separation of all 
other common expenses except General and Administrative Expenses.



Sec. 1242.84  Marketing, sales, and public relations and advertising (accounts XX-63-88, XX-63-89 and XX-63-93).

    Separate each common expense account on the basis of the solely 
related freight and passenger expense accounts.



Sec. 1242.85  Fringe benefits (account 12-63-00).

    Separate the common expenses in proportion to the total common 
salaries and wages expense separation (account 11-XX-XX) determined in 
Secs. 1242.83 and 1242.84.



Sec. 1242.86  Industrial development (account XX-61-90).

    These accounts pertain solely to freight service and contain no 
common expenses for separation herein.



Sec. 1242.87  Joint facility--debit and credit and casualties and insurance (accounts 37-63-00, 38-63-00 and 50-63-00).

    Separate the common expenses in proportion to the total of all 
common expense separations determined in Secs. 1242.83 and 1242.84 
above.
    Note: If compilation of the data in compliance with any of the above 
separation rules results in an undue burden in accounting expense, the 
carrier may request relief from such rules by letter to the Director, 
Bureau of Accounts. If reliable data can be developed through other 
methods and procedures, the carrier may request substitution of such

[[Page 184]]

methods also by letter to the Director, Bureau of Accounts. In both 
cases, the carrier shall support the request with full details.



PART 1243--QUARTERLY OPERATING REPORTS--RAILROADS--Table of Contents




Sec.
1243.1  Revenues, expenses and income.
1243.2  Condensed balance sheet.

    Authority: 49 U.S.C. 721, 11145.

    Source: 37 FR 5503, Mar. 16, 1972, unless otherwise noted.
    Note: The report forms prescribed by part 1243 are available upon 
request from the Office of the Secretary, Surface Transportation Board, 
Washington, DC 20423.



Sec. 1243.1  Revenues, expenses and income.

    Commencing with reports for the 3 months beginning January 1, 1972, 
and for subsequent quarters thereafter, until further ordered, all class 
I railroads, except switching and terminal companies, as defined in 
Sec. 1240.1 of this chapter, subject to the provisions of Part I of the 
Interstate Commerce Act, be, and they are hereby, required to compile 
and file quarterly reports of revenues, expenses and income in 
accordance with quarterly report Form RE&I, and instructions thereon. 
Such quarterly reports shall be filed, in duplicate, in the Bureau of 
Accounts, Surface Transportation Board, Washington, DC 20423, within 30 
days after the end of the quarter to which they relate.



Sec. 1243.2  Condensed balance sheet.

    Commencing with reports for the 3 months beginning January 1, 1972, 
and for subsequent quarters thereafter, until further ordered, all class 
I railroads, except switching and terminal companies, as defined in 
Sec. 1240.1 of this chapter, subject to the provisions of Part I of the 
Interstate Commerce Act, be, and they are hereby, required to compile 
and file quarterly reports of balance sheet items in accordance with 
quarterly report Form CBS, and instructions thereon. Such quarterly 
reports shall be filed, in duplicate, with the Bureau of Accounts, 
Surface Transportation Board, Washington, DC 20423, within 30 days after 
the end of the quarter to which they relate.



PART 1244--WAYBILL ANALYSIS OF TRANSPORTATION OF PROPERTY--RAILROADS--Table of Contents




Sec.
1244.1  Definitions.
1244.2  Applicability.
1244.3  Sampling of waybills.
1244.4  Date of filing.
1244.5  Retention of files.
1244.6  Special studies.
1244.7  Analysis of waybill data.
1244.8  Procedures for the release of waybill data.

    Authority: 49 U.S.C. 721, 10707, 11144, 11145.

    Source: 46 FR 26784, May 15, 1981, unless otherwise noted.



Sec. 1244.1  Definitions.

    (a) Railroad--an individual railroad or terminal company subject to 
the Interstate Commerce Act and every receiver, trustee, executor, 
administrator or assignee of any such railroad. If a railroad and its 
railroad subsidiaries report to the Board on a consolidated basis, they 
would collectively be considered as a railroad.
    (b) A railroad subsidiary--a railroad owned or controlled by another 
railroad.
    (c) A waybill, which may be referred to by other names such as mine 
tickets, is the document or instrument prepared from the bill of lading 
contract or shipper's instructions as to the disposition of the freight, 
and used by the railroad(s) involved as the authority to move the 
shipment and as the basis for determining the freight charges and 
interline settlements.



Sec. 1244.2  Applicability.

    (a) Effective July 1, 1981 and thereafter, unless otherwise ordered, 
each railroad as defined in Sec. 1244.1 above is required to file 
waybill sample information for all line-haul revenue waybills terminated 
on its lines if it terminates at least 4,500 revenue carloads in any of 
the three preceding years, or if it terminates at least 5% of the 
revenue carloads terminating in any state in any of the three preceding 
years. A railroad required to file waybill sample information under this 
section shall herein be referred to as subject railroad.
    (b) Waybill terminations shall include all line-haul revenue 
movements

[[Page 185]]

terminating for waybilling purposes on the subject railroad's line 
whether the lading is destined for the terminating station as denoted on 
the waybill or the shipment is being rebilled or forwarded to the 
ultimate destination by another railroad or another mode of 
transportation (e.g., lake cargo, inbound transit, or other rebilled 
movements).
    (c) Each subject railroad shall also file the required waybill 
sample information for all of its railroad subsidiaries.
    (d) Each subject railroad shall also file the required waybill 
sample information for any other railroad for which it performs revenue 
billing and/or interline settlements under special agreement.
    (e) The surviving corporate entity of railroads (subject to the 
Interstate Commerce Act) who have merged or reorganized shall be 
required to report waybill sample information if its predecessor 
railroad or any of its predecessor railroads were required to report 
under this section.
    (f) In order to determine the number of carloads terminated in each 
state, railroads not otherwise submitting waybill information must 
report annually the number of carloads terminated by state for the last 
calendar year. These reports shall be submitted by March 1 of the year 
following the report year.
    (g) Transition. This final rule will apply to all subject waybills 
which are in the subject railroad's audit month of July 1981 and all 
audit months thereafter. The former rule will continue to apply to all 
subject waybills for the prior audit months up to and including June 
1981.



Sec. 1244.3  Sampling of waybills.

    (a) Subject railroads shall file waybill sample information in one 
of the following two ways. (1) Authenticated copies of a sample of 
audited revenue waybills--the manual system (Sec. 1244.3(b)). (2) A 
computer tape containing specified information from a sample of 
waybills--the computerized system (Sec. 1244.3(c)).
    (b) The Manual System. (1) The sample of subject waybills shall be 
as follows:
    (i) All waybills with less than 6 carloads per waybill whose serial 
numbers are 1 or end in 01,
    (ii) All waybills with 6 to 25 carloads per waybill whose serial 
numbers end in 1; and,
    (iii) All waybills with 26 or more carloads per waybill whose serial 
numbers end in 1 or 7.
    (2) The expected sampling rates for the manual system are as 
follows:

------------------------------------------------------------------------
                                                                Expected
                Numbers of carloads on waybill                   sample
                                                                  rate
------------------------------------------------------------------------
1 to 5........................................................    1/100
6 to 25.......................................................     1/10
26 and over...................................................      1/5
------------------------------------------------------------------------

    (3) Upon giving the subject roads 60 days notice, the Board may 
require random serial number endings in lieu of the respective endings 
shown in Sec. 1244.3(b). These random serial number endings would have 
the expected sample rates shown in Sec. 1244.3(b)(2).
    (4) If the subject waybills have no waybill numbers or serial 
numbers, or have seriously flawed waybill or serial numbers, then the 
subject railroad should serialize those documents in blocks of 1,000 or 
blocks of multiples of 1,000 (e.g., 1, 2, . . . 1,000; 1, 2, . . .) and 
use these constructed serial numbers for selection purposes.
    (c) The Computerized System. (1) The tape shall be required to 
conform to the standards and format specified in Statement No. 81-1, 
Procedure for Sampling Waybill Records by Computer, issued by the 
Surface Transportation Board, which may be revised from time to time.
    (2) The sampling rates for the computerized system are as follows:

------------------------------------------------------------------------
                                                                  Sample
                  Number of carloads on waybill                    rate
------------------------------------------------------------------------
1 to 2..........................................................    1/40
3 to 15.........................................................    1/12
16 to 60........................................................     1/4
61 to 100.......................................................     1/3
101 and over....................................................     1/2
------------------------------------------------------------------------

    (d) Controls and Annual Counts. (1) Each subject railroad shall 
maintain a control procedure to ensure complete and accurate reporting 
for the waybill sampling. All pertinent waybill data shall be included 
on hard copy waybill

[[Page 186]]

submissions including inbound references for transit waybills. All such 
pertinent waybill data shall be legible.
    (2) All subject railroads shall maintain a record of the number of 
line-haul revenue carloads that terminated on their line in a calendar 
year and shall furnish this number when requested by the Board.
    (3) All subject railroads using the manual system of reporting shall 
furnish the Board, in accordance with instructions on the Transmittal 
Form OPAD-2, the total counts of line-haul revenue waybills terminated 
in each reporting period for the following three categories:
    (i) Waybills, with less than six carloads per waybill,
    (ii) Waybills with 6 to 25 carloads per waybill, and
    (iii) Waybills with 26 or more carloads per waybill.
    (4) All subject railroads on the computerized system of reporting 
shall furnish the Board the control counts and tape specification 
information as required by the Statement No. 81-1.
    (5) Certification by a responsible officer of the subject railroad 
as to the completeness and accuracy of sample shall be made once a year 
in accordance with the instructions on the Transmittal Forms OPAD-1 or 
OPAD-2.

[46 FR 26784, May 15, 1981, as amended at 46 FR 45141, Sept. 10, 1981]



Sec. 1244.4  Date of filing.

    (a) The reporting period for which subject railroads submit waybill 
sample information shall be the audit (accounting) month except as 
specified below:
    (1) Subject railroads using the computerized system may submit 
waybill sample information quarterly as specified in Statement 81-1.
    (2) Subject railroad using the manual system may submit waybill 
sample information quarterly if it submits fewer than 1,000 waybills per 
year.
    (b) Waybill sample information shall be forwarded no later than 60 
days from the end of the reporting period to the Board.
    (c) When the submitted waybill sample information is returned to the 
submitting railroad for correction, that railroad shall resubmit 
corrected data to the Board promptly but no later than 60 days after its 
receipt.
    (d) Transmittal Forms. (1) Subject railroads using the manual system 
of reporting shall complete the Transmittal Form OPAD-2, to accompany 
each waybill sample submission.
    (2) Subject railroads using the computerized system of reporting 
shall complete the Transmittal Form OPAD-1, to accompany each waybill 
tape submission.



Sec. 1244.5  Retention of files.

    (a) Subject railroads which submit waybill sample data by the 
computerized system instead of the manual system shall retain the 
underlying hard copy waybills or facsimilies capable of producing 
legible copies, which shall be complete including inbound references for 
transit waybills, for a minimum period of four years.
    (b) This file of retained waybills shall be maintained in such a 
manner that the railroads on the computerized system may readily 
retrieve waybill copies using the waybill identifier code as shown on 
the submitted computerized waybill record.



Sec. 1244.6  Special studies.

    (a) Although routine submission of hard copy waybills is eliminated 
when a railroad reports under the computerized system, the Board may 
order that railroad to submit hard copies of the underlying waybills for 
special studies.
    (b) The Board may order the subject railroads to supply additional 
data for submitted waybill copies or records for special studies.



Sec. 1244.7  Analysis of waybill data.

    Users of the waybill sample when presenting waybill analysis before 
the Board shall ensure that the appropriate weighting factors are 
applied to account for the stratified sampling. See Statement 81-1 for 
guidelines for weighting waybill data and for computing sampling errors.



Sec. 1244.8  Procedures for the release of waybill data.

    (a) General. The procedures for the release of waybill data identify 
five classes of users of the STB Waybill

[[Page 187]]

Sample, define the waybill information or data that each class of users 
may obtain, and set forth the applicable requirements for the data's 
release. They also formalize notice and protest procedures for the 
possible release of waybill data to other users to protect against the 
inappropriate release of confidential data. The Director of the Office 
of Transportation Analysis shall be responsible for releasing waybill 
data in accordance with these procedures.
    (b) Class of user, available data, and applicable release 
requirements. (1) Railroads. Each requesting railroad may obtain any 
waybill record from the STB Waybill Sample covering traffic that 
originated, terminated, or was bridged by that railroad. The railroad 
shall not have access to waybill data pertaining to traffic in which it 
did not participate. Also, it must meet all STB and legal requirements 
concerning release of shipper information in accordance with 49 U.S.C. 
11910(a).
    (2) Federal agencies. Each requesting Federal agency (including 
quasi-governmental agencies) may obtain any waybill record from the STB 
Waybill Sample subject to the following requirements:
    (i) The Federal agency shall make the information contained in the 
STB Waybill Sample available only to its employees or those contractors 
working on the particular project or study requiring the waybill data.
    (ii) The Federal agency will ensure that railroads and shippers are 
afforded the same privilege and protection against disclosure of the 
waybill data as the Board provides.
    (iii) The Federal agency will not release any data to the public 
unless the data elements are aggregated to contain at least three 
shippers and to prevent identification of an individual railroad.
    (iv) The Federal agency will refer any requests for waybill data and 
accompanying documentation to the STB for processing and will so inform 
the requesting party of such referral to the Board.
    (v) The Federal agency must sign an agreement annually with the 
Board agreeing to these restrictions.
    (3) States. Each requesting State may obtain any waybill record 
pertaining to traffic that was originated, terminated, interchanged in, 
or that passed through its State subject to the same requirements 
imposed on federal agencies under paragraphs (b)(2)(i) through (v) of 
this section.
    (4) Transportation practitioners, consulting firms, and law firms--
specific proceedings. Transportation practitioners, consulting firms and 
law firms may use data from the STB Waybill Sample in preparing verified 
statements to be submitted in formal proceedings before the STB and/or 
State Boards (Board) subject to the following requirements:
    (i) The STB Waybill Sample is the only single source of the data or 
obtaining the data from other sources is burdensome or costly, and the 
data is relevant to issues pendng before the Board.
    (ii) The requestor submits to the STB a written waybill request that 
complies with Sec. 1244.8(e).
    (iii) All waybill data must be returned to the STB, and the firm 
must not keep any copies.
    (iv) A transportation practitioner, consulting firm, or law firm 
must submit any evidence drawn from the STB Waybill Sample to the Board 
only unless the evidence is aggregated to the level of at least three 
shippers and will prevent the identification of an individual railroad. 
Nonaggregated evidence submitted to the Board will be made part of the 
public record only if the Board finds that it does not reveal 
competitively sensitive data. However, evidence found to be sensitive 
may be provided to counsel or other independent representatives for 
other parties subject to the usual and customary protective order issued 
by the Board or appropriate authorized official.
    (v) For each Board proceeding, a firm must sign a confidentiality 
agreement with the STB agreeing to the above restrictions before any 
data will be released. This agreement will permit use of the released 
data for a period of one year from the date the agreement is signed by 
the user. If the data is required for an additional period of time 
because a proceeding is still pending before the Board, the firm must 
sign a

[[Page 188]]

new confidentiality agreement covering the data needed for each 
additional year the proceeding is opened.
    (5) Public use. Nonconfidential waybill data may be obtained from 
the ``Public Use Waybill File''. Reports produced from the Public Use 
Waybill File may be used, published, or released. The Public Use Waybill 
File contains the following nonconfidential items:
    (i)  Waybill Date (Month, Day, Year).
    (ii)  Accounting Period (Month, Year).
    (iii)  Number of Carloads.
    (iv)  Car Ownership (Rail or Private).
    (v)  AAR Car Type.
    (vi)  AAR Mechanical Designation.
    (vii)  STB Car Type.
    (viii)  TOFC/COFC Plan.
    (ix)  Number of TOFC/COFC Units.
    (x)  TOFC/COFC Unit Ownership.
    (xi)  TOFC/COFC Unit Type (Trailer or Container).
    (xii)  Hazardous/Bulk Material in Box Car Flag.
    (xiii)  Commodity Code--Excluding STCC 49/50 (All 5 digit STCC 
Codes, except STCC 19).
    (xiv)  Billed Weight in Tons.
    (xv)  Actual Weight in Tons.
    (xvi)  Linehaul Freight Revenue.
    (xvii)  Transit Revenue.
    (xviii)  Miscellaneous Revenue.
    (xix)  Interstate/Intrastate Code.
    (xx)  Type of Move (Import/Export/Minibridge).
    (xxi)  All Rail/Intermodal Code.
    (xxii)  Type Move Via Water.
    (xxiii)  Outbound Transit Code.
    (xxiv)  Substituted Truck for Rail Service.
    (xxv)  Rebill Code.
    (xxvi)  Estimate of Miles.
    (xxvii)  Stratum Identification.
    (xxviii)  Replicate Number.
    (xxix)  Population Count/Strata Count (expansion factor).
    (xxx)  Theoretical Expansion Factor.
    (xxxi)  Number of Interchanges.
    (xxxii)  Origin BEA (omitted if STCC and BEA pair reveals 
competitively sensitive shipper data).
    (xxxiii)  Origin STB Rate Territory.
    (xxxiv)  States of Interchanges (first through ninth).
    (xxxv)  Termination BEA (omitted if STCC and BEA pair reveals 
competitively sensitive shipper data).
    (xxxvi)  Termination STB Rate Territory.
    (xxxvii)  Waybill Reporting Period Length.
    (xxxviii)  AAR Provided UMBLER Data.
    (xl)  Bad Routing Code.
    (xli)  Miscellaneous Factored Expanded Data (e.g., carloads).
    (c) Other Users. (1) Users other than those described in paragraphs 
(b)(1) through (b)(5) of this section may file written requests in 
accordance with paragraph (e) of this section for permission to use data 
from the STB Waybill Sample.
    (2) All written requests filed by such users are subject to the 
notice and protest procedures described in paragraph (d) of this 
section.
    (d) Notice and protest procedures for waybill requests by other 
users. Railroads and shippers will be notified and afforded the 
opportunity to protest waybill requests filed by users other than those 
described in paragraphs (b)(1) through (b)(5) of this section in 
accordance with the following procedures:
    (1) Notice of request for confidential waybill data. Affected 
railroads and shippers will receive notice by Federal Register 
Publication. If railroad specific or shipper specific data are 
requested, those parties will be given written notice of the request.
    (2) Form of notice. The notice shall identify the parties requesting 
the data; describe the type of waybill data requested; and state the 
purpose for which the data is requested. The notice shall include a 
statement that parties seeking information concerning the filing of 
objections should refer to Ex Parte No. 385 (Sub-No. 2), 49 CFR 1224.8, 
or contact the Surface Transportation Board's Office of Transportation 
Analysis.
    (3) Objections to release. (i) Objections to release of the 
confidential waybill data must be filed by the railroad and/or shipper 
no later than 14 calendar days from publication of the notice in the 
Federal Register.
    (ii) An original and 3 copies of each objection shall be filed with 
the Director, Office of Transportation Analysis, Surface Transportation 
Board, Washington, DC 20423.

[[Page 189]]

    (iii) The objection shall identify the parties seeking the 
confidential waybill data, reiterate the purpose for which the data is 
sought, and state all grounds for objection to full or partial 
disclosure of the requested data.
    (4) Board determination. (i) The Director of the Office of 
Transportation Analysis will consider all objections in determining 
whether to release the requested waybill data. Each railroad or shipper 
who filed objections will be sent written notice of the Director's 
decision not less than 14 calendar days prior to the disclosure date.
    (ii) The Board reserves the right to deny the release of waybill 
data although no objections may be filed.
    (iii) Appeals must be filed with the Chairman within 10 days of the 
date of the Director's decision. Responses to appeals must be filed 
within 10 days thereafter (49 CFR 1011.7(b)(1)). The filing of an appeal 
will automatically stay the effect of the Director's decision.
    (e) Content of waybill requests. (1) All requestors under paragraphs 
(b)(4) and (c) of this section shall include the following information:
    (i) A complete and detailed explanation of the purpose for which the 
requested data are needed.
    (ii) A description of the specific waybill data or fields actually 
required (including pertinent geographic areas).
    (iii) A detailed justification as to why the specified waybill data 
are needed.
    (2) An original and 2 copies of the waybill request shall be filed 
with the Director, Office of Transportation Analysis, Surface 
Transportation Board, Washington, DC 20423.
    (f) Aggregation of confidential shipper data.
    (1) Any shipper data obtained from the Waybill Sample shall not be 
publicly released unless the data are aggregated to include at least 
three shippers.
    (2) To aggregate the waybill data to the level of three shippers, 
the three-FSAC Rule shall be used. Under this rule, there must be at 
least three different freight stations as identified by the Freight 
Station Accounting Code (FSAC) on one railroad or there must be at least 
two more FSAC's than there are railroads present in the waybill data 
being aggregated.
    (3) The three-FSAC Rule shall apply to every number and calculation 
publicly released.
    (4) The Director of OTA will consider requests to apply an 
alternative aggregation method provided the requestor establishes that a 
particular project necessitates an alternative approach and that 
approach effectively protects the identity of individual shippers.
    (g) Complaint procedures. (1) Complaints for alleged breaches of 
confidentiality or misuse of confidential waybill data must include the 
following:
    (i) Identification of all known parties involved in the alleged 
violation.
    (ii) The approximate date(s) of the alleged violations.
    (iii) A full and detailed description of the alleged violation.
    (iv) A description of any resulting harm to the complainant.
    (2) Prior to filing a complaint, a complainant, upon written 
request, may obtain a copy of the incoming waybill request and the 
applicable confidentiality agreement. This request must identify the 
party involved, give the approximate date the data was released, briefly 
describe the alleged violation, and substantiate the need for this 
information for purposes of filing a complaint.
    (3) An original and three (3) copies of the complaint shall be filed 
with the Director, Office of Transportation Analysis, Surface 
Transportation Board, Washington, DC 20423. A copy of the complaint 
shall also be served on the alleged violator(s).
    (4) An answer must be filed within 20 days after service of the 
complaint.
    (5) All parties will be notified in writing of the Director's 
decision. If the Director determines that a violation has occurred, the 
offending parties will be denied access to the waybill sample for a 
period of time commensurate with the nature of the violation.
    (6) Appeals to the Director's determination shall be filed in 
accordance with paragraph (d)(4)(iii) of this section.
    (h) Munitions shipments. All waybill requests for munition data at 
the 3-

[[Page 190]]

digit Standard Transportation Commodity Code (STCC) level or greater 
will be forwarded by the STB to the Department of Defense's Military 
Traffic Management Command (MTMC). The STB will not release this type of 
information without MTMC's consent.

[52 FR 12416, Apr. 16, 1987]



PART 1245--CLASSIFICATION OF RAILROAD EMPLOYEES; REPORTS OF SERVICE AND COMPENSATION--Table of Contents




Sec.
1245.1  Rules governing classification of employees, service, and 
          compensation.
1245.2  Reports of railroad employees, service and compensation.
1245.3  Employees; definition, service hours, and compensation.
1245.4  Forms required to be used.
1245.5  Classification of job titles.
1245.6  Cross reference to standard occupational classification manual.

    Authority: 49 U.S.C. 721, 11145.

    Source: 32 FR 20462, Dec. 20, 1967, unless otherwise noted.
    Note: The report forms prescribed by part 1245 are available upon 
request from the Office of the Secretary, Surface Transportation Board, 
Washington, DC 20423.



Sec. 1245.1  Rules governing classification of employees, service, and compensation.

    The rules governing the classification of railroad employees and 
reports of their service and compensation outlined in Secs. 1245.3 and 
1245.4 are required, and all Class I railroads within the scope of 
Section 11145 of the Interstate Commerce Act shall be governed by such 
rules in the preparation and submission of their annual and other 
periodic reports to the Surface Transportation Board in accordance with 
the forms adopted for such returns (Sec. 1245.2); and also with respect 
to any other matters covered by these rules.

[47 FR 53867, Nov. 30, 1982]



Sec. 1245.2  Reports of railroad employees, service and compensation.

    Beginning with the reporting period commencing January 1, 1983, and 
quarterly thereafter until further ordered, each Class I railroad is 
required to file a Quarterly Report of Railroad Employees, Service, and 
Compensation, (Form QRSC). In addition, such carriers shall also file an 
Annual Report of Railroad Employees, Service, and Compensation, (Form 
ARSC) for each calendar year. Both reports shall be filed with the 
Bureau of Accounts, Surface Transportation Board, Washington, DC 20423. 
The quarterly report shall be filed within thirty days after the end of 
each calendar quarter. The annual report shall be filed within forty 
five days after the end of the reporting year.

[47 FR 53867, Nov. 30, 1982]



Sec. 1245.3  Employees; definition, service hours, and compensation.

    (a) Definition of ``employees''. The word employees, as used in this 
part, is intended to include every person in the service of the 
reporting carrier subject to its continuing authority to supervise and 
direct the manner of rendition of his service. Persons engaged to render 
only specifically defined service and not subject to the continuing 
authority of the carrier to supervise and control their acts, such as 
customhouse brokers, lawyers retained only for specific cases and not 
under general or continuing retainer, etc., are not employees in the 
meaning of the term used in this part.
    (b) Counting employees. Since the number of employees fluctuates, 
carriers are required to classify and count all of their employees at 
twelve different times each year.
    (c) Joint employees. Each person jointly employed shall, if carried 
on the payrolls of the several joint employers, be counted by each 
employer and represented in its return of number of employees by a 
fraction based on the number of employers reporting him; if a person, 
for example, is reportable by three employers, each should include him 
in its number of employees as one-third of an employee. When the entire 
compensation of a joint employee is shown on the payroll of a single 
joint employer and is paid to the employee by that employer such 
employee should, for the purpose of returns, be treated as if employed 
solely by such employer.
    (d) Service hours. (1) The number of hours on duty, or held for 
duty, and the

[[Page 191]]

number of hours paid for are to be ascertained and recorded for every 
class of employee. For enginemen and trainmen, the actual number of 
miles run and miles paid for but not run are to be recorded, as well as 
the number of hours on duty and the number of hours paid for. (The 
service time of all classes of employees shall be recorded in hours 
instead of days or hours as heretofore.)
    (2) Whenever an employee works at more than one occupation, or in 
more than one class of service, both the number of hours worked and the 
compensation paid, should be separated and reported under the proper 
Reporting Divisions.
    (3) If an employee is paid a day's wage for a smaller number of 
hours than constitutes a day's work, the number of hours paid for as 
well as the actual number of hours the employee is on duty should be 
ascertained and recorded. Time allowed for meals, part holidays, 
holidays, absences on leave, vacations, etc., should be excluded from 
time actually worked, but if such time is paid for it should be 
appropriately reported as ``Time paid for but not worked'' on Form A or 
as a ``constructive allowance'' on Form B. These requirements apply to 
enginemen and trainmen paid on the basis of trips or of miles run, and 
to employees paid at piece rates, as well as to employees paid on 
hourly, daily, weekly, monthly, or other time basis. Service hours for 
officers and employees who do not receive payment for overtime should be 
reported as the number of hours in each month at 8 hours per day 
contemplated for the position.
    (e) Compensation. The compensation of employees as defined in the 
rules in this part is to be stated in such manner and detail as the 
forms adopted for periodical returns require.



Sec. 1245.4  Forms required to be used.

    (a) The report of information to the Surface Transportation Board on 
railroad employees, service and compensation includes two forms. Form A 
relates to employees other than train and engine service employees. Form 
B relates to train and engine service employees.
    (b) With general reference to the statement of the compensation of 
employees in Forms A and B, it should be understood that the total 
compensation received by the employees in each Reporting Division, as 
well as the amount of work they perform, should be shown properly 
distributed under the prescribed column heads as indicated by the forms. 
It should be noted that if the work of an employee varies during a 
report period, his time and compensation should be apportioned 
accordingly. Amounts reported should be gross compensation paid.

    Illustrations. (a) In the course of a month, an employee works as a 
Machinist, and as such earns $200 and he works also as a Gang Foreman 
and earns $130. The pay received by him in the occupation of Machinist 
with corresponding time should be included in returns for Division 61, 
``Machinists'', and his other pay and time as indicated should be 
included in returns for Division 53, ``Gang Foremen and Gang Leaders''. 
(b) When an employee works at two or more of the occupations of 
engineer, fireman, conductor, and brakeman, his time and compensation 
should be assigned in accordance with the facts. For example, in a 
certain month an employee earns as a Through Freight Engineer $110, as a 
Local or Way Freight Engineer $140, as a Yard Engineer $100, and as a 
Local or Way Freight Fireman $75. The time and the compensation of this 
employee should be correspondingly distributed among Reporting Divisions 
122, 123, 124, and 127 as they are respectively applicable, without 
regard to the predominance of the time worked or the amount earned by 
him in one occupation.

    (c) As elsewhere indicated, the statement of the number of employees 
in the service of a company with respect to Reporting Divisions depends 
upon the allocation of the individual employees as of the day of count.
    (d) The Reporting Divisions shown in Forms A and B following will 
also be used in connection with the employees' schedule in the annual 
reports of railroads of classes I and II to the Board. Railroads of 
class III and lessor companies shall report only the information 
required in the annual report forms prescribed for such companies.

[32 FR 20462, Dec. 20, 1967, as amended at 47 FR 53867, Nov. 30, 1982]



Sec. 1245.5  Classification of job titles.

[[Page 192]]



----------------------------------------------------------------------------------------------------------------
                                                                                            Relation to present
 Number     Classification          Description                 Typical titles                classification
----------------------------------------------------------------------------------------------------------------
100....       Executives,
             Officials, and
            Staff Assistants
101....  Executives and        Chief executives,     President, Vice President,           More precisely defined
          General Officers.     corporate             Assistant Vice President,            than present No. 1,
                                department heads      Controller, Treasurer, Director      limited to executive
                                and major             (head of subdepartment), General     management positions;
                                subdepartment heads.  Superintendent (subdepartment        adds new titles.
                                                      head), Chief Engineer, General
                                                      Manager (department or
                                                      subdepartment head).
102....  Corporate Staff       Corporate executives  Director (other than subdepartment   New classification,
          Managers.             and managers          head), Assistant Director,           providng a specific
                                assisting             Assistant General Manager (not       assignment for staff
                                department and        regional), Manager, Assistant        managers; adds new
                                subdepartment heads.  Manager, Assistant Chief Engineer,   title.
                                                      Purchasing Agent, Superintendent
                                                      (not division), Assistant to
                                                      (corporate executive or general
                                                      officer), Executive Assistant (to
                                                      corporate executive) Budget
                                                      Officer.
103....  Regional and          Regional managers     Assistant General Manager,           Similar to present No.
          Division Officers,    and assistants        Assistant Regional Manager,          2 but limited to
          Assistants and        below the executive   General Superintendent, Assistant    regional and
          Staff Assistants.     management level,     to General Manager, Division         divisional
                                and chief division    Superintendent, Master Mechanic,     management; adds new
                                officers.             Division Sales Manager, District     title.
                                                      Sales Manager, Assistant Master
                                                      Mechanic, District Engineer,
                                                      Assistant Superintendent, Captain
                                                      of Police, Division Engineer,
                                                      Manager of Materials, Safety
                                                      Inspector, Real Estate Agent, Real
                                                      Estate Supervisor, Tax Agent,
                                                      Buyer, Assistant Buyer, Sales
                                                      Agent, Assistant Sales Agent.
104....  Transportation        Managers directly     Train Master, Assistant Train        New classification
          Officers/Managers.    supervising train     Master, General Yardmaster,          providing specific
                                and yard operations.  General Road Foreman, Road           assignment for
                                                      Foreman, Assistant Road Foreman,     Operations Managers.
                                                      Chief Power Supervisor (motive).
200....    Professional and
             Administrative
201....  Professionals (other  Technical             General Counsel, Assistant General   Corresponds to present
          than those reported   occupations           Counsel, General Attorney,           STB No. 3, but
          in 101 and 102).      requiring a high      Assistant General Attorney,          limited to
                                degree of training    Attorney, Commerce Counsel, Chief    professionals; adds
                                and/or supervising    Medical Officer, Medical Officer,    new titles.
                                subprofessionals      Surgeon, Company Surgeon,
                                and technicians.      Engineer, Architect, Chief
                                                      Chemist, Nurse, Tax Accountant,
                                                      Internal Auditor to General
                                                      Accountant, Corporate Accountant,
                                                      Supervisor Programing, Senior
                                                      Computer System Specialist, Senior
                                                      System Analyst.
202....  Subprofessionals....  Technical             Draftsman, Chemist, Assistant        Corresponds to present
                                occupations           Chemist, X-ray Technician,           STB No. 3 but limited
                                requiring a high      Supervisor Estimating, Junior        to subprofessionals;
                                degree of knowledge   Engineer, Engineering Trainee,       adds new titles.
                                and/or skill.         Photographer, Computer Programmer,
                                                      Computer Analyst, Market Analyst,
                                                      Pricing Analyst, Employment
                                                      Supervisor, Research Analyst.
203....  Auditors, Traveling   Title is descriptive  Traveling Auditor, Accounting        Corresponds to present
          Auditors or                                 Specialist Auditors, Operations      STB No. 13.
          Accountants.                                Traveling Auditors, Station
                                                      Auditors.
204....  General and           Supervisors           General Supervisor, Supervisor,      Consolidation of
          Administrative        responsible for       Chief Clerk, Office Supervisor,      present STB Nos. 4
          Supervisors.          administrative        Supervisor Administration, Office    and 5; adds new
                                activity of a         Manager, Supervising Clerk, Head     titles.
                                department,           Clerk, Assistant Chief Clerk,
                                subdepartment,        Supervising Cashier, Division
                                office or region.     Supervisor, Regional Supervisor,
                                                      Budget Supervisor, Administrative
                                                      Supervisor, Administrative
                                                      Assistant.

[[Page 193]]

 
205....  Sales and Traffic     Non-supervisory       Freight Traffic Agent, Coal Traffic  New classification,
          Representatives and   occupations with      Agent, Sales Representative,         containing a portion
          Agents.               predominant           Freight Sales Representative,        of present STB No.
                                responsibilities      Freight Traffic Representative,      19; adds new titles.
                                for sales and         Passenger Sales Representative.
                                customer relations.
206....  Freight and Other     Occupations which     Claim Agent, Claim Investigator,     Consolidates present
          Claim Agents and      have predominant      Freight Claim Agent, Freight Claim   STB Nos. 20 and 21;
          Investigators.        duties                Investigator.                        adds new titles.
                                investigating and
                                handling freight
                                and personal injury
                                claims.
207....  Supervising and       Title is descriptive  Chief Claim Agent, Chief Freight     Corresponds with
          Chief Claim Agents.                         Claim Agent, Assistant Chief Claim   present STB No. 22.
                                                      Agent, Chief District Claim Agent,
                                                      District Freight Claim Agent,
                                                      Chief Claim Investigator.
208....  Lieutenants and       Title is descriptive  Police Lieutenant, Police Sergeant.  Corresponds to present
          Sergeants of Police.                                                             STB No. 17.
209....  Police Officers,      Title is descriptive  Police Officer, Patrolman,           Corresponds with
          Watchmen and Guards                         Watchman, Guard.                     present STB No. 18.
          (Except Crossing
          and Bridge).
210....  Inspectors (Except    Miscellaneous         Rules Examiner, Supervisor Rules,    Classification for a
          Maintenance of Way    occupations which     Safety Supervisor, Fire Marshall,    portion of similar
          and Equipment),       have predominant      Fire Chief, Instructor, Supervisor   occupations included
          Other                 duties of             Procedures, Supervisor Yard          in present STB No.
          Investigators,        investigating,        Procedures.                          19; adds new titles.
          Examiners,            inspecting,
          Instructors, and      reviewing, and
          Other Agents          instructing and
          (Except Station       which require a
          Agents).              high degree of
                                technical knowledge.
212....  Clerical Technicians  Clerical occupations  Lead Clerk, Staff Assistant          Corresponds to present
          and Clerical          with duties to        (clerical), Statistician, Cashier,   STB No. 6; adds new
          Specialists.          perform               Teller, Assistant Statistician,      titles.
                                independently         Rate Clerk, Pricing Clerk,
                                responsible work      Computer Technician.
                                requiring special
                                financial cost,
                                accounting, or
                                other technical
                                knowledge.
213....  Office Machine and    Occupations with      Machine Operator, Clerk, Computer    Corresponds to present
          Data Equipment        predominant duties    Operator, Keypunch Operator Office   STB No. 8; adds new
          Operators.            of operating office   Machine Technician.                  titles.
                                machines and
                                computer equipment.
214....  Secretaries,          Secretaries,          Secretary, Stenographer, Typists,    Consolidates present
          Stenographers, and    Stenographers, and    Clerk Typist, Steno-clerk.           STB Nos. 9 and 10.
          Typists.              Typists.
215....  General and Other     Clerical occupations  File Clerk, General Clerk,           Corresponds to present
          Clerks (excluding     not otherwise         Bookkeeper, Ticket Clerk, Records    STB NO. 7; adds new
          yard clerk and crew   classified.           Clerk, Trace Clerk, Assignment       titles.
          dispatcher).                                Clerk, Personnel Clerk, M of W
                                                      Clerks, M of E Clerks.
216....  Telephone and         Title is descriptive  Switchboard Operator, Chief          Present STB No. 14.
          Switchboard                                 Operator.
          Operators.
217....  Building and Office   Miscellaneous         Elevator Operator, Elevator          Consolidates present
          Attendants.           occupations           Starter, Janitor, Cleaner, Porter.   STB Nos. 16 and 26.
                                associated with
                                office building
                                functions.
218....  Messengers and        Title is descriptive  Messenger, Office Person...........  Present STB No. 15.
          Office Persons.
219....  Motor Vehicle         Occupations           Truck Driver, Bus Driver, Driver,    Consolidates present
          Operators.            associated with       Chauffeur.                           STB Nos. 24 and 25.
                                automobile and
                                truck driving.
300....   Maintenance of Way
             and Structures

[[Page 194]]

 
301....  Supervisors,          Occupations with      Roadmaster, Division Roadmaster,     Corresponds with
          Maintenance of Way,   supervisor            Supervisor Track, Supervisor         present STB Nos. 27
          Structures,           responsibility for    Bridges and Buildings, Supervisor    and 44.
          Communication and     maintenance of way    Communications and Signals,
          Signals.              and structures        Assistant Supervisor, General
                                (other than           Foreman (MW&S), Assistant General
                                regional and          Foreman (MW&S), Master Carpenter,
                                divisional            Chief Draftsman.
                                officers).
302....  Maintenance of Way,   Title is descriptive  Chief Bridge and Building            Corresponds with
          Structures,                                 Inspector, Chief Scale Inspector,    present STB No. 28
          Communication and                           Bridge and Building Inspector,       plus part of old No.
          Signals, and Scale                          Scale Inspector, Roadway Equipment   44.
          Inspectors.                                 Inspector, Track and Roadway
                                                      Inspector, Instrument Man, Rodman,
                                                      Chainman, Inspector Communications
                                                      and Signals, Signal Inspector.
303....  Bridge and Building   Title is descriptive  Gang Foreman, Lead Workman.........  Consolidates present
          Gang Foreman.                                                                    STB No. 29 with
                                                                                           bridge and building
                                                                                           portion of present
                                                                                           STB No. 39.
304....  Bridge and Building   Title is descriptive  Carpenter..........................  Corresponds with
          Carpenters.                                                                      present STB No. 30.
305....  Bridge and Building   Title is descriptive  Ironworker.........................  Corresponds with
          Ironworkers.                                                                     present STB No. 31.
306....  Bridge and Building   Title is descriptive  Painter, Sign Painter..............  Corresponds with
          Painters.                                                                        present STB No. 32.
307....  Masons, Bricklayers,  Title is descriptive  Mason, Bricklayer, Plasterer,        Corresponds with
          Plasterers, and                             Plumber, Operator, Grinder, Welder   present STB Nos. 23
          Plumbers.                                   (M of W).                            and 33.
308....  Bridge and Building   Title is descriptive  Carpenter Helper, Ironworker         Corresponds with
          Helpers and                                 Helper, Mason Helper, Plumber        present STB No. 34;
          Apprentices.                                Helper, Painter Helper, Apprentice   adds new titles.
                                                      Carpenter, Apprentice Ironworker,
                                                      Apprentice Mason, Plumber
                                                      Apprentice, Apprentice Painter,
                                                      Welder Helper.
309....  Bridge and Building   Title is descriptive  Bridge and Building Laborer........  Corresponds with
          Gang and Bridge and                                                              present STB No. 43.
          Building Department
          Laborers.
310....  Track Gang Foremen    Title is descriptive  Gang Foreman, Assistant Foreman....  Corresponds with
          (Extra Gang work                                                                 present STB No. 38.
          train laborers).
311....  Gang or Section       Title is descriptive  Gang Foreman, Assistant Foreman,     Corresponds with
          Foreman.                                    Section Foreman.                     present STB No. 40.
312....  Extra Gang Laborers.  Title is descriptive  Trackman, Fence Laborer............  Corresponds with
                                                                                           present STB No. 41.
313....  Section Laborers....  Title is descriptive  Trackman, Track and Roadway Section  Corresponds with
                                                      Laborer.                             present STB No. 42.
314....  Machine Operators...  Title is descriptive  Craneman, Portable Equipment         Consolidates present
                                                      Engineer, Portable Equipment         STB No. 35, 36, and
                                                      Operator, Machine Operator, Helper.  37.
315....  Gang Foremen,         Title is descriptive  Gang Foreman, Assistant Gang         Consolidates present
          Communications and                          Foreman, Lead Signal Maintainer.     STB No. 45 with
          Signals.                                                                         communications and
                                                                                           signals occupations
                                                                                           included in present
                                                                                           STB No. 39.
316....  Signalmen and Signal  Title is descriptive  Signalman, Signal Maintainer.......  Corresponds with
          Maintainers.                                                                     present STB No. 46.
317....  Linemen and           Communications        Electrical Worker (Lineman),         Corresponds with
          Groundmen and         equipment             Electrical Worker (Groundman)        present STB No. 47.
          Communications        installers,           Communications maintainer.
          Craftsman.            Maintainers, and
                                repairmen.
318....  Assistant Signalmen   Title is descriptive  Assistant Signalman, Assistant       Corresponds with
          and Assistant                               Signal Maintainer.                   present STB No. 48.
          Signal Maintainers.
319....  Signal Helpers and    Title is descriptive  Signalman Helper, Signal Maintainer  Corresponds with
          Signal Maintainer                           Helper.                              present STB No. 49.
          Helpers.
320....  Camp Car Cooks......  Occupations engage    Camp Car Cook, Camp Car Helper.....  Corresponds with part
                                in food service in                                         of present STB No.
                                camp cars.                                                 97.

[[Page 195]]

 
400....     Maintenance of
             Equipment and
                 Stores
401....  Supervisors and       Occupations with      General Foreman Shop, General        Corresponds with
          General Foremen,      supervisory           Foreman Enginehouse, General         present STB No. 50;
          Maintenance of        responsibility for    Foreman Diesel Terminal, Assistant   adds new titles.
          Equipment.            maintenance of        General Foreman (M of E).
                                equipment (other
                                than regional and
                                division officers).
402....  Supervisors and       Occupations with      Supervisor Materials, Assistant      Corresponds with
          General Foremen,      supervisory           Supervisor Materials, General        present STB No. 51;
          Materials and         responsibility for    Foreman Stores, General Foreman      adds new titles.
          Stores.               stores and            Reclamation Plant, Assistant
                                materials.            General Foreman.
403....  Equipment, Shop,      Title is descriptive  Chief Electrical Inspector, Chief    Corresponds with part
          Electrical                                  Shop and Equipment Inspector,        of present STB No.
          Inspectors.                                 Electrical Inspector, Equipment      52.
                                                      Inspector, Inspector Diesel
                                                      Locomotive, Fuel Inspector.
404....  Materials and         Title is descriptive  Materials and Supplies Inspector,    Corresponds with part
          Supplies Inspectors.                        Chief Materials and Supplies         of present STB No.
                                                      Inspector, Timber Inspector, Tie     52.
                                                      Inspector.
405....  Storekeeper.........  Title is descriptive  Storekeeper, Assistant Storekeeper,  Corresponds to
                                                      Materials Clerk, Store Clerk.        materials and stores
                                                                                           occupation in present
                                                                                           STB No. 11.
406....  Gang Foremen,         Title is descriptive  Gang Foreman.......................  Consolidates present
          Maintenance of                                                                   STB Nos. 53 and 68.
          Equipment.
407....  Blacksmiths.........  Title is descriptive  Blacksmith.........................  Corresponds with
                                                                                           present STB No. 54.
408....  Boilermakers........  Title is descriptive  Boilermaker........................  Corresponds with
                                                                                           present STB No. 55.
409....  Carmen (Freight)....  Repair and inspect    Car Repairmen, Car Inspector,        Corresponds with
                                freight cars.         Carman, Painter.                     present STB No. 57.
410....  Carmen (Other)......  Title is descriptive  Carmen.............................  Corresponds with
                                                                                           present STB No. 56.
411....  Electrical Workers    Electricians........  Electrician, Electrical Worker.....  Corresponds with
          (A).                                                                             present STB No. 58.
412....  Electrical Workers    Electrical workers--  Crane Operator, Load Dispatcher,     Corresponds with
          (B).                  occupations           Power Station Operator, Assistant    present STB No. 59.
                                specialized in        Power Director.
                                operating heavy
                                equipment.
413....  Electrical Workers    Electrical Workers--  Coal and Ore Elevator Operator       Corresponds with
          (C).                  occupation            (electrical), Grain Elevator         present STB No. 60.
                                specialized in        Operator (electrical).
                                heavy equipment
                                operating at coal,
                                grain, and ore
                                docks.
414....  Machinists..........  Title is descriptive  Machinist..........................  Corresponds with
                                                                                           present STB No. 61.
415....  Sheet Metal Workers.  Title is descriptive  Sheet Metal Worker.................  Corresponds with
                                                                                           present STB No. 63.
416....  Skilled Trades,       Title is descriptive  Helper.............................  Corresponds with
          Helpers,                                                                         present STB No. 64.
          Maintenance of
          Equipment and
          Stores.
417....  Apprentices,          Title is descriptive  Apprentice, Helper Apprentice......  Consolidates present
          Maintenance of                                                                   STB Nos. 65 and 66.
          Equipment and
          Stores.
418....  Coach Cleaners......  Title is descriptive  Coach Cleaner......................  Corresponds with
                                                                                           present STB No. 67.
419....  Laborers: Shops,      Title is descriptive  Laborer............................  Consolidates present
          Enginehouses, and                                                                STB Nos. 70 and 71.
          Power Plants.
420....  Gang Foremen,         Title is descriptive  Gang Foremen.......................  Corresponds with
          Materials and                                                                    present STB No. 69.
          Stores.
421....  Equipment Operators   Title is descriptive  Laborer, Materials Handler,          Corresponds with
          and General                                 Equipment Operators, Machine         present STB No. 72,
          Laborers, Materials                         Operators.                           plus part of STB No.
          and Stores.                                                                      24.
422....  Stationary Engineers  Title is descriptive  Chief Engineer (Steam Plant)         Corresponds with
                                                      Engineer, Stationary Engineer.       present STB No. 73.
423....  Stationary Firemen..  Title is descriptive  Stationary Fireman, Power Equipment  Corresponds with
                                                      Operator Helper, Oiler.              present STB No. 74.
500....     Transportation,
            Other Than Train
               and Engine

[[Page 196]]

 
501....  Transportation        Occupational          Chief Train Dispatcher, Supervisor   Corresponds with
          Supervisor and        directly              Train Operations, Transportation     present STB No. 75;
          Chief Train           supervising train     Supervisor, Supervisor Train         adds new titles.
          Dispatcher.           operation.            Operations, Supervisor Locomotive
                                                      and Car Distribution, Assistant
                                                      Chief Train Dispatcher.
502....  Train Dispatchers...  Title is descriptive  Train Dispatcher...................  Corresponds with
                                                                                           present STB No. 76.
503....  Station, Freight and  Occupations with      Supervising Station Agent,           Consolidates present
          Passenger Agents.     responsibility for    Assistant Supervising Station        STB Nos. 12, 78, 79,
                                station operations.   Agent, Station Agent, Freight        and 80.
                                                      Agent, Passenger Agent, Ticket
                                                      Agent, Traveling Agent, Agent
                                                      Operators.
504....  Chief Operators and   Title is descriptive  Supervising Operator, Chief          Corresponds with
          Wire Chiefs.                                Operator, Assistant Supervising      present STB No. 81.
                                                      Operator, Wire Chief.
505....  Clerk Operators,      Title is descriptive  Clerk Operator, Block Operator,      Consolidates present
          Towerman, Train                             Operator, Towerman, Train            STB Nos. 77, 82 and
          Directors.                                  Directors.                           83.
506....  Station Masters and   Title is descriptive  Stationmaster, Assistant             Consolidates present
          Assistants,                                 Stationmaster, Supervising Baggage   STB Nos. 84, 85, and
          Supervising Baggage                         Agent, Baggage Agent, Assistant      86.
          Agents, Baggage                             Baggage Agent, Parcel Room Agent.
          Agents and
          Assistants.
507....  Baggage, Parcel Room  Title is descriptive  Baggage Attendant, Parcel Room       Corresponds with
          and Station                                 Attendant, Station Attendant,        present STB No. 87.
          Attendants.                                 Gateman, Announcer, Station Usher,
                                                      Red Cap, Information Bureau
                                                      Attendant.
508....  General and           Title is descriptive  General Foreman, Assistant General   Consolidates present
          Assistant General                           Foreman.                             STB Nos. 88 and 89.
          Foremen, Stations,
          Warehouses, Grain
          Elevators, and
          Docks.
509....  Gang Foremen,         Title is descriptive  Gang Foreman.......................  Corresponds with
          Stations,                                                                        present STB No. 90.
          Warehouses, Grain
          Elevators and Docks.
510....  Grain Elevator, and   Title is descriptive  Laborer............................  Consolidates present
          Dock Laborers.                                                                   STB Nos. 93 and 94.
511....  Station, and          Title is descriptive  Loader, Sealer.....................  Corresponds with
          Warehouse Laborers.                                                              present STB No. 91.
512....  Truckers (Station,    Title is descriptive  Trucker............................  Corresponds with
          Warehouse and                                                                    present STB No. 92.
          Platforms).
513....  Food and Lodging      Occupations with      Manager Lodging House, Restaurant    Corresponds with
          Manager,              responsibility for    Manager, Dining Car Supervisor,      present STB No. 95.
          Supervisors.          supervision of food   Dining Car Steward.
                                service or lodging.
514....  Transportation and    Title is descriptive  Instructor Chef, Restaurant          Corresponds with
          Dining-Service                              Inspector, Freight Service           present STB No. 99.
          Inspectors.                                 Inspector, Baggage Inspector.
515....  Waiters and Kitchen   Title is descriptive  Waiter-in-charge, Waiter...........  Corresponds with
          Helpers (Restaurant                                                              present STB No. 97.
          and Dining Car).
516....  Chefs and Cooks       Title is descriptive  Chef, Cook.........................  Corresponds with
          (Restaurant and                                                                  present STB No. 96.
          Dining Car).
517....  Marine Officers and   All occupations with  Captain, Engineer, Mate, Deckhand,   Corresponds with
          Workers and Shore     predominant duties    Oiler, Purser, Boat Master,          present STB No. 98.
          Workers.              which are the         Fireman, Wharf Master, Able
                                operation of marine   Seaman, Baggageman, Boat
                                service.              Dispatcher.
518....  Train Attendants....  Passenger train       Porter, Buffet Lounge Attendant,     Consolidates present
                                occupations other     Stewardess.                          STB Nos. 100 and 101.
                                than train service
                                and dining car
                                operation.
519....  Bridge Operators and  Title is descriptive  Bridge Operator....................  Corresponds with
          Helpers.                                                                         present STB No. 102.

[[Page 197]]

 
520....  Bridge and Crossing   Title is descriptive  Bridge Flagman, Crossing Gateman...  Corresponds with
          Flagmen and Gatemen.                                                             present STB No. 103.
521....  Yard Clerks.........  Clerical occupations  Yard Clerk, Yard Clerk Caller, Yard  New classification.
                                situated in yards     Demurrage Clerk, Yard Dispatcher
                                and yard offices.     Clerk, Piggyback Clerk.
522....  Crew Dispatchers....  Title is descriptive  Crew Dispatcher, Crew Caller.......  New classification.
523....  Yardmasters and       Title is descriptive  Yardmaster, Assistant Yardmaster...  Consolidates present
          Assistant                                                                        STB No. 105 and 106.
          Yardmasters.
600....     Transportation,
            Train and Engine
601....  Switchtenders.......  Title is descriptive  Switchtender.......................  Corresponds to present
                                                                                           STB No. 107.
602....  Car Retarder          Ground occupations    Car Retarder Operator, Skatesman,    New classification--
          Operators and         not part of yard      Herder, Yard Pilot.                  part of present STB
          Ground Service        crew.                                                      No. 119; adds new
          Employees.                                                                       titles.
603....  Outside Hostlers....  Title is descriptive  Outside Hostler....................  Corresponds to present
                                                                                           STB No. 108.
604....  Outside Hostler       Title is descriptive  Outside Hostler Helper.............  Corresponds to present
          Helpers.                                                                         STB No. 110.
605....  Inside Hostler......  Title is descriptive  Inside Hostler.....................  Corresponds to present
                                                                                           STB No. 109.
606....  Road Passenger        Title is descriptive  Passenger Conductor................  Corresponds to present
          Conductors.                                                                      STB No. 111.
607....  Assistant Road        Title is descriptive  Assistant Passenger Conductor,       Corresponds to present
          Passenger                                   Ticket Collector.                    STB No. 112.
          Conductors and
          Ticket Collectors.
608....  Road Freight          Title is descriptive  Freight Conductor, Work Train        Corresponds to present
          Conductors (Through                         Conductor, (paid through rate).      STB No. 113.
          Freight).
609....  Road Freight          Title is descriptive  Freight Conductor, Work Train        Corresponds to present
          Conductors (Local                           Conductor, (paid local rate).        STB No. 114.
          and Way Freight).
610....  Road Passenger        Title is descriptive  Baggageperson......................  Corresponds to present
          Baggageperson.                                                                   STB No. 115.
611....  Road Passenger        Title is descriptive  Passenger Brakeman, Passenger        Corresponds to present
          Brakemen and                                Flagman.                             STB No. 116.
          Flagmen.
612....  Road Freight          Title is descriptive  Freight Brakeman, Freight Flagman,   Corresponds to present
          Brakemen and                                Work Train Brakeman (paid through    STB No. 117.
          Flagmen (Through                            rate).
          Freight).
613....  Road Freight          Title is descriptive  Freight Brakeman, Freight Flagman,   Corresponds to present
          Brakemen and                                Work Train Brakeman, (paid local     STB No. 118.
          Flagmen (Local and                          rate).
          Way Freight).
614....  Yard Conductors and   Title is descriptive  Yard Conductor, Yard Foreman.......  Corresponds to present
          Yard Foremen.                                                                    STB No. 119 Less Car
                                                                                           Retarder Operator and
                                                                                           other ground
                                                                                           occupations not part
                                                                                           of Yard Crew.
615....  Yard Brakemen and     Title is descriptive  Yard Brakeman, Yard Helper.........  Corresponds to present
          Yard Helpers.                                                                    STB No. 120; adds new
                                                                                           titles.
616....  Road Passenger        Title is descriptive  Passenger Engineer, Motorman,        Corresponds to present
          Engineers and                               Operator.                            STB No. 121.
          Motormen.
617....  Road Freight          Title is descriptive  Freight Engineer, Work Train         Corresponds to present
          Engineers (Through                          Engineer, (paid through rate).       STB No. 122.
          Freight).
618....  Road Freight          Title is descriptive  Freight Engineer, Work Train         Corresponds to present
          Engineers (Local                            Engineer, (paid local rate).         STB No. 123.
          and Way Freight).
619....  Yard Engineers......  Title is descriptive  Yard Engineer......................  Corresponds to present
                                                                                           STB No. 124.
620....  Road Passenger        Title is descriptive  Passenger Fireman..................  Corresponds to present
          Firemen and Helpers.                                                             STB No. 125.
621....  Road freight Firemen  Title is descriptive  Freight Fireman....................  Corresponds to present
          and Helpers                                                                      STB No. 126.
          (Through Freight).
622....  Road Freight Firemen  Title is descriptive  Freight Fireman....................  Corresponds to present
          and Helpers (Local                                                               STB No. 127.
          and Way Freight).

[[Page 198]]

 
623....  Yard Firemen and      Title is descriptive  Yard Fireman.......................  Corresponds to present
          Helpers.                                                                         STB No. 128.
----------------------------------------------------------------------------------------------------------------


[47 FR 53868, Nov. 30, 1982, as amended at 50 FR 947, Jan. 8, 1985]
 


[[Page 199]]



Sec. 1245.6  Cross reference to standard occupational classification manual.

------------------------------------------------------------------------
                Job title                               SOC
------------------------------------------------------------------------
100  Executives, Officials and Staff
 Assistants
101  Executive and General Officers:
  President..............................  121.
  Vice President.........................  121.
  Assist. Vice President.................  121.
  Controller.............................  122.
  Treasurer..............................  122.
  Director (Head of Sub-Department)......  139.
  General Superintendent.................  139.
  Subdepartment Head.....................  139.
  Chief Engineer.........................  1342 and 1639.
  General Manager (Dept. or Subdepartment  137.
   Head).
102  Corporate Staff Managers:
  Director (Other Than Sub-department      139.
   Head).
  Assist. Director.......................  139.
  Assist. General Manager (Not Regional).  137.
  Manager................................  137.
  Assist. Manager........................  137.
  Assist. Chief Engineer.................  1639.
  Purchasing Agent.......................  1449.
  Superintendent (Not Division)..........  1342.
  Assist. to (Corporate Executive or Gen.  149.
   Officer).
  Executive Assist. (To Corporate          149.
   Executive).
  Budget Officer.........................  1419.
103  Regional and Division Officers,
 Assistants and Staff Assistants:
  Assist. General Manager................  137.
  Assist. Regional Manager...............  1342.
  General Superintendent.................  1342.
  Assist. to General Manager.............  137.
  Division Superintendent................  1342.
  Master Mechanic........................  6117.
  Division Sales Manager.................  125.
  District Sales Manager.................  125.
  Assist. Master Mechanic................  6117.
  District Engineer......................  1342 and 1639.
  Assist. Superintendent.................  1342.
  Captain of Police......................  5112.
  Division Engineer......................  1638 and 1342.
  Manager of Materials...................  4525.
  Safety Inspector.......................  1473.
  Real Estate Agent......................  1353.
  Real Estate Supv.......................  1353.
  Tax Agent..............................  1412.
  Buyer..................................  1449.
  Assist. Buyer..........................  1449.
  Sales Agent............................  4235.
  Assist. Sales Agent....................  4235.
104  Transportation Officers/Managers:
  Train Master...........................  1342.
  Assist. Train Master...................  1342.
  General Yard Master....................  8113.
  General Road Foreman...................  1342.
  Road Foreman...........................  1342.
  Assist. Road Foreman...................  1342.
  Chief, Power Supervisor (Motive).......  1342.
200  Professional and Administrative
201  Professionals (Other Than Those
 Reported in 101 and 102):
  General Counsel........................  211.
  Assist. General Counsel................  211.
  General Attorney.......................  211.
  Assist. General Attorney...............  211.
  Attorney...............................  211.
  Commerce Counsel.......................  211.
  Chief Medical Officer..................  261.
  Medical Officer........................  261.
  Surgeon................................  261.
  Company Surgeon........................  261.
  Engineer...............................  1639.
  Architect..............................  161.
  Chief Chemist..........................  1845.
  Nurse..................................  29 and 366.
  Tax Accountant.........................  1412.
  Internal Auditor to Gen. Accountant....  1412.
  Corporate Accountant...................  1412.
  Supervisor Programming.................  137.
  Senior Computer System.................  1712.
  Specialist Senior System Analyst.......  1712.
202  Subprofessionals:
  Draftsman..............................  372.
  Chemist................................  1845.
  Assist. Chemist........................  1845.
  X-ray Technician.......................  365.
  Supv. Estimating.......................  149.
  Junior Engineer........................  1639.
  Engineer Trainee.......................  1639.
  Photographer...........................  326.
  Computer Programmer....................  397.
  Computer Analyst.......................  1712.
  Market Analyst.........................  1912.
  Pricing Analyst........................  4716.
  Employment Supv........................  123.
  Research Analyst.......................  1721.
203  Auditors, Traveling Auditors or
 Accountants:
  Traveling Auditor......................  1412.
  Accounting Specialist Auditor..........  1412.
  Operations Traveling Auditor...........  1412
  Station Auditors.......................  1412.
204  General and Administrative
 Supervisors:
  General Supv...........................  4511 and 137.
  Supv...................................  4511 and 137.
  Chief Clerk............................  4511 and 137.
  Office Supv............................  4511 and 137.
  Supv. Admin............................  149.
  Office Manager.........................  137.
  Supv. Clerk............................  4511 and 137.
  Head Clerk.............................  4511 and 137.
  Assist. Chief Clerk....................  4511 and 137.
  Supv. Cashier..........................  4529.
  Division Supv..........................  4511 and 137.
  Regional Supv..........................  4511 and 137.
  Budget Supv............................  1419.
  Admin. Supv............................  149.
  Admin. Assist..........................  149.
205  Sales and Traffic Representatives
 and Agents:
  Freight Traffic Agent..................  4152.
  Coal Traffic Agent.....................  4152.
  Sales Representative...................  4152.
  Freight Sales Representative...........  4152.
  Freight Traffic Representative.........  4152.
  Passenger Sales Representative.........  4152.
206  Freight and other Claim Agents and
 Investigators:
  Claim Agent............................  4712.
  Claim Investigator.....................  4783.
  Freight Claim Agent....................  4712.
  Freight Claim Investigator.............  4783.
207  Supervising and Chief Claim Agents:
  Chief Claim Agent......................  4529 and 1473.
  Chief Freight Claim Agent..............  4528.
  Assist. Chief Claim Agent..............  4528 and 1473.
  Chief District Claim Agent.............  4528.
  District Freight Claim Agent...........  4528.
  Chief Claim Investigator...............  4783.

[[Page 200]]

 
208  Lieutenants and Sergeants of Police:
  Police Lieutenant......................  5112.
  Police Sergeant........................  5112.
209  Police Officers, Watchmen and Guards
 (Except Crossing and Bridge):
  Police Officer.........................  5132.
  Patrolman..............................  5144.
  Watchman...............................  5144.
  Guard..................................  5144.
210  Inspectors (Except Maintenance of
 Wage and Equipment) other Investigators,
 Examiners, Instructors, and other Agents
 (except Station Agents):
  Rules Examiner.........................  1473.
  Supv. Rules............................  1473.
  Safety Supv............................  1473.
  Fire Marshall..........................  5122.
  Fire Chief.............................  1131 and 5111.
  Instructor.............................  239.
  Supv. Procedures.......................  4525.
  Supv. Yard Procedure...................  4525.
212  Clerical Technicians and Clerical
 Specialists:
  Lead Clerk.............................  4511 and 463.
  Staff Assistant (Clerical).............  4511 and 463.
  Statistician...........................  1733.
  Cashier................................  4364.
  Teller.................................  4364.
  Assist. Statistician...................  1733.
  Rate Clerk.............................  4716.
  Pricing Clerk..........................  4716.
  Computer Technician....................  4612.
213  Office Machine and Data Equipment
 Operators:
  Machine Operator.......................  4718.
  Clerk..................................  463
  Computer Operator......................  4612.
  Keypunch Operator......................  4793.
  Office Machine Technician..............  4718.
214  Secretaries, Stenographers, and
 Typists:
  Secretary..............................  4622.
  Stenographer...........................  4623.
  Typist.................................  4624.
  Clerk Typists..........................  4624.
  Steno. Clerk...........................  4623.
215  General and other Clerks (Excluding
 Yard Clerk and Crew Dispatcher):
  File Clerk.............................  4696.
  General Clerk..........................  463.
  Bookkeeper.............................  4712.
  Ticket Clerk...........................  4644.
  Records Clerk..........................  4696.
  Trace Clerk............................  463.
  Assignment Clerk.......................  4752.
  Personnel Clerk........................  4692.
  M of W Clerks..........................  4699.
  M of E Clerks..........................  4699.
216  Telephone and Switchboard Operators:
  Switchboard Operator...................  4732.
  Chief Operator.........................  4523.
217  Building and Office Attendants:
  Elevator Operator......................  5245.
  Elevator Starter.......................  5241.
  Janitor................................  5244.
  Cleaner................................  5244.
  Porter.................................  5244.
218  Messengers and Office Persons:
  Messenger..............................  4745.
  Office Person..........................  4745.
219  Motor Vehicle Operators:
  Truck Driver...........................  8213 and 8214.
  Bus Driver.............................  8215.
  Driver Chauffeur.......................  8216.
300  Maintenance of Way and Structures
301  Supervisors, Maintenance of Way,
 Structures, Communication and Signals:
  Roadmaster.............................  1342.
  Division Roadmaster....................  1342.
  Supv. Track............................  812.
  Supv. Bridges and Buildings............  133.
  Supv. Communications & Signals.........  1341.
  Assist. Supv...........................  1341.
  General Foreman........................  1342.
  Assist. General Foreman................  1342.
  Master Carpenter.......................  6313.
  Chief Draftsman........................  372.
302  Maintenance of Way, Structures,
 Communication and Signals, and Scale
 Inspectors:
  Chief Bridges & Building Inspector.....  782.
  Chief Scale Inspector..................  782.
  Bridge & Building Inspector............  1472.
  Scale Inspector........................  782.
  Roadway Equipment Inspector............  828.
  Track and Roadway Inspector............  828.
  Instrument Man.........................  6881 and 6151.
  Roadman................................  1472 and 8769.
  Chainman...............................  613.
  Inspector Communications & Signals.....  1341.
  Signal Inspector.......................  1341.
303  Bridge and Building Gang Foreman:
  Gang Foreman...........................  6318.
  Lead Foreman...........................  6318.
304  Bridge and Building Carpenter:        6422.
 Carpenter.
305  Bridge and Building Ironworkers:      6473.
 Iron Worker.
306  Bridge and Building Painter:
  Painter................................  6442.
  Sign Painter...........................  6863.
307  Masons, Bricklayers, Plasterers, and
 Plumbers:
  Mason..................................  6413, 6444, 6463, and 6412.
  Bricklayer.............................  6412.
  Plasterer..............................  6444.
  Plumber................................  645.
  Operator...............................  6467.
  Grinder................................  6467.
  Welder.................................  7714.
308  Bridge and Building Helpers and
 Apprentices:
  Bridge and Building Helper Appr........  6473.
  Carpenter Helper.......................  8642.
  Iron Worker Helper.....................  6473 and 862.
  Mason Helper...........................  8641.
  Plumber Helper.........................  8645.
  Painter Helper.........................  8644.
  Apprentice, Carpenter..................  6422.
  Apprentice, Iron Worker................  6473.
  Apprentice Mason.......................  6412, 6413, 6444, and 6463.
  Plumber Apprentice.....................  645.
  Apprentice Painter.....................  6442 and 8644.
  Welder Helper..........................  862.
309  Bridge and Building Gang and Bridge   871.
 and Building Department Labors: Bridge
 and Building Labor.
310  Track Gang Foreman (Extra Gang Work
 Train Laborers):
  Gang Foreman (Track)...................  6318.

[[Page 201]]

 
  Assist. Foreman........................  6318.
311  Gang or Section Foreman:
  Gang Foreman...........................  6318.
  Assist. Foreman........................  6318.
  Section Foreman........................  6318.
312  Extra Gang Laborers:
  Trackman...............................  6467.
  Fence Laborer..........................  6479 and 8769.
313  Section Laborers:
  Trackman...............................  8769.
  Track & Roadway Section Labor..........  8769.
314  Machine Operators:
  Craneman...............................  8315.
  Portable Equipment Engineer............  8312.
  Portable Equipment Operator............  8319.
  Machine Operator.......................  8319.
  Helper.................................  8618.
315  Gang Foreman, Communications and
 Signals:
  Gang foreman...........................  6318.
  Assist. Gang Foreman...................  6318.
  Lead Signal Maintainer.................  6318.
316  Signal and Signal Maintainer:
  Signalman..............................  8233.
  Signal Maintainer......................  6151 and 8233.
317  Linemen and Groundmen and
 Communications Craftsman:
  Electrical Worker (lineman)............  6433.
  Electrical Worker (groundsman).........  6432.
  Communications Maintainer..............  6151.
318  Assistant Signalmen and Assistant
 Signalmen Maintainers:
  Assist. Signalman......................  8233 and 6151.
  Assist. Signal Maintainer..............  6151 and 8233.
319  Signal Helpers and Signal Maintainer
 Helpers:
  Signalman Helper.......................  8635.
  Signalman Maintainer Helper............  8635.
320  Camp Car Cooks:
  Camp Car Cook..........................  5214.
  Camp Car Helper........................  5219.
400  Maintenance of Equipment and Stores
401  Supervisors and General Foreman,
 Maintenance of Equipment:
  General Foreman Shop...................  6318 and 1342.
  General Foreman Enginehouse............  6318 and 1342.
  General Foreman Diesel Terminal........  6318 and 1342.
  Assist. General Foreman (M&E)..........  6318 and 1342.
402  Supervisors and General Foreman,
 Materials and Stores:
  Supv. Materials........................  4525.
  Assist. Supv. Materials................  4525.
  General Foreman Stores.................  4524.
  General Foreman Reclamations Plant.....  6318.
  Assist. General Foreman................  6318.
403  Equipment, Shop, Electrical
 Inspectors:
  Chief Electrical Inspector.............  6314.
  Chief Shop & Equipment Inspector.......  1472.
  Electrical Inspector...................  1472.
  Equipment Inspector....................  6881.
  Inspector Diesel locomotive............  6881.
  Fuel Inspector.........................  6831.
404  Materials and Supplies Inspector:
  Materials and Supplies Inspector.......  782.
  Chief Materials and Supplies...........  4525.
  Inspector..............................  782.
  Timber Inspector.......................  782.
  Tie Inspector..........................  782.
405  Storekeeper:
  Storekeeper............................  4754.
  Assist. Storekeeper....................  4754.
  Materials Clerk........................  4754.
  Store Clerk............................  4754.
406  Gang Foreman, Maintenance of          6318.
 Equipment: Gang Foreman.
407  Blacksmith:.........................
  Blacksmiths............................  6179.
408  Boilermakers:.......................
  Boilermaker............................  6814.
409  Carmen (Freight):
  Car Repairmen..........................  6117.
  Car Inspector..........................  828.
  Car Painter............................  6442.
410  Carmen (other):.....................
  Carman.................................  6117.
411  Electrical Workers (A):
  Electrician............................  6432.
  Electrical Worker......................  6159.
412  Electrical Workers (B):
  Crane Operator.........................  8315.
  Load Dispatcher........................  4751.
  Power Station Operator.................  6932.
  Assist. Power Director.................  6932.
413  Electrical Workers (C):
  Coal and Ore Elevator Operator (elec)..  8319.
  Grain Elevator Operator (electrical)...  8319.
414  Machinists:.........................
  Machinist..............................  6813.
415  Sheet Metal Workers:................
  Sheet Metal Worker.....................  6824.
416  Skilled Trades, Helpers, Maintenance  861, 862, 863, and 864.
 of Equipment and Stores: Helper.
417  Apprentices, Maintenance of
 Equipment and Stores:
  Apprentice.............................  863.
  Helper Apprentices.....................  863.
418  Coach Cleaners: Coach Cleaner.......  875.
419  Laborers; Shops, Enginehouses, and    8769, 86, and 87.
 Power Plants: Laborer.
420  Gang Foreman, Materials and Stores:   6318.
 Gang Foreman.
421  Equipment Operators and General
 Laborers, Materials and Stores:
  Laborer................................  8725, and 8769.
  Materials Handler......................  8726.
  Equipment Operator.....................  8239.
  Machine Operator.......................  8319.
422  Stationary Engineers:
  Chief Engineer (Steam Plant)...........  6932.
  Engineer...............................  6932.
  Stationary Engineer....................  6931.
423  Stationary Firemen:
  Stationary Fireman.....................  5122 and 8619.
  Power Equipment Operator Helper........  8319.
  Oiler..................................  614.
500  Transportation other Than Train and
 Engine
501  Transportation Supervisor and Chief
 Train Dispatcher:
  Chief Train Dispatcher.................  8113.
  Supv. Train Operator...................  1342.
  Transportation Supv....................  1342.
  Supv. Locomotives and Car Dist.........  4759 and 8111.
  Assist. Chief Train Dispatcher.........  8113.
502  Train Dispatchers: Train Dispatcher.  8113.
503  Station, Freight and Passenger
 Agents:
  Supv. Station Agent....................  4514.
  Assist. Supv. Station Agent............  4514.
  Station Agent..........................  4514.
  Freight Agent..........................  4644.
  Passenger Agent........................  4644.

[[Page 202]]

 
  Ticket Agent...........................  4644.
  Traveling Agent........................  4644.
  Agent Operators........................  4514.
504  Chief Operators and Wire Chiefs:
  Supv. Operator.........................  4523.
  Chief Operator.........................  4523.
  Assist. Supv. Operator.................  4523.
  Wire Chief.............................  4523 and 60.
505  Clerk Operators, Towerman, Train
 Directors:
  Clerk Operator.........................  4632.
  Block Operator.........................  4632.
  Operator...............................  4632.
  Towerman...............................  8239.
  Train Director.........................  8113.
506  Station Masters and Assistants,
 Supervising Baggage Agents, Baggage
 Agents and Assistants:
  Stationmaster..........................  1342.
  Assist. Station Master.................  1342.
  Supv. Baggage Agent....................  4525.
  Baggage Agent..........................  5262.
  Assist. Baggage Agent..................  5262.
  Parcel Room Agent......................  4744.
507  Baggage Parcel Room and Station
 Attendants:
  Baggage Attendant......................  5262.
  Parcel Room Attendant..................  4744.
  Station Attendant......................  4514.
  Gateman................................  5144.
  Announcer..............................  4649.
  Station Usher..........................  5256.
  Red Cap................................  5262.
  Information Bureau Attendant...........  4649.
508  General and Assistant General
 Foreman, Stations. Warehouses, Grain
 Elevators and Docks:
  General Foreman........................  6318.
  Assist. General Foreman................  6318.
509  Gang Foreman, Stations, Warehouses,
 Grain Elevators and Docks:
  Gang Foreman...........................  6318.
510  Grain Elevator and Dock Laborers:
  Laborer................................  8242.
511  Station and Warehouse Laborers:
  Loader.................................   8726.
  Sealer.................................  8769 and 8724.
512  Trucks (Station, Warehouse and
 Platforms):
  Trucker................................  8214.
513  Food and Lodging Manager,
 Supervisors:
  Manager Lodging House..................  1351.
  Restaurant Manager.....................  1351.
  Dining Car Supv........................  5211, and 1473.
  Dinning car Steward....................  5211.
514  Transportation and Dining Service
 Inspectors:
  Instructor Chef........................  5214.
  Restaurant Inspector...................  828.
  Freight Service Inspector..............  828.
  Baggage Inspector......................  828.
515  Waiters and Kitchen Helpers
 (Restaurant and Dining):
  Waiter-in-Charge.......................   5211.
  Waiter.................................  5211.
516  Chefs and Cooks (Restaurant and
 Dining Car):
  Chef...................................   5211.
  Cook...................................  5211 and 5214.
517  Marine Officers and Workers and
 Shore Workers:
  Captain................................  8242.
  Engineer...............................  8244.
  Mate...................................  8242.
  Deckhand...............................  8243.
  Oiler Purser...........................  8244.
  Boat Master............................  8241.
  Fireman................................  8243.
  Wharf Master...........................  1342.
  Able Seaman............................  8243.
  Baggageman.............................  5262.
  Boat Dispatcher........................  1342.
518  Train Attendants:
  Porter.................................  5262.
  Buffet Lounge Attendant................  4366.
  Stewardess.............................  5211.
519  Bridge Operators and Helpers: Bridge  8245.
 Operator.
520  Bridge and Crossing Flagmen and
 Gatemen:
  Bridge Flagman.........................  8769.
  Crossing Gateman.......................  5144.
521  Yard Clerks:
  Yard Clerk.............................  4754.
  Yard Caller............................  4745.
  Yard Dispatcher Clerk..................  4752.
  Piggyback Clerk........................  4753.
  Yard Demurrage Clerk...................  4715.
522  Crew Dispatchers:
  Crew Dispatcher........................  4751 and 4525.
  Crew Caller............................  4745.
523  Yardmasters and Assistant
 Yardmasters:
  Yardmaster.............................  8113.
  Assist. Yardmaster.....................  8113.
600  Transportation, Train and Engine      .............................
601  Switchtenders: Switchtender.........  8233.
602  Car Retarder Operators and Ground
 Service Employees:
  Car Retarder Operator..................  8239.
  Skatesman..............................  8769.
  Herder.................................  8769.
  Yard Pilot.............................  8113.
603  Outside Hostlers: Outside Hostler...  8232.
604  Outside Hostlers Helpers: Outside     8232.
 Hostler Helper.
605  Inside Hostlers: Inside Hostler.....  8232.
606  Road Passenger Conductors: Passenger  8113.
 Conductor.
607  Assistant Road Passenger Conductor
 and Ticket Collectors:
  Assistant Passenger Conductor..........  8113.
  Ticket Collector.......................  5256.
608  Road Freight Conductors (Through
 Freight):
  Freight Conductor......................  8113.
  Work Train Conductor...................  8113.
609  Road Freight Conductors (Local and
 Way Freight):
  Freight Conductor......................  8113.
  Work Train Conductor...................  8113.
610  Road Passenger Baggagepersons:        5262.
 Baggageperson.
611  Road Passenger Brakeman and Flagman:
  Passenger Brakeman.....................  8233.
  Passenger Flagman......................  5142.
612  Road Freight Brakemen and Flagmen
 (Through Freight):
  Freight Brakeman.......................  8233.
  Freight Flagman........................  5142.
  Work Train Brakeman....................  8233.
613  Road Freight Brakemen and Flagmen
 (Local and Way Freight):
  Freight Brakeman.......................  8233.
  Freight Flagman........................  5142.

[[Page 203]]

 
  Work Train Brakeman....................  8233.
614  Yard Conductors and Yard Foremen:
  Yard Conductor.........................  8113.
  Yard Foreman...........................  8113.
615  Yard Brakemen and Yard Helpers:
  Yard Brakeman..........................  8233.
  Yard Helper............................  8769.
616  Road Passengers Engineers and
 Motormen:
  Passenger Engineer.....................  8232.
  Motorman Operator......................  8232.
617  Road Freight Engineers (Through
 Freight):
  Freight Engineer.......................  8232.
  Work Train Engineer....................  8232.
618  Road Freight Engineers (Local and
 Way Freight):
  Freight Engineer.......................  8232.
  Work Train Engineer....................  8232.
619  Yard Engineers: Yard Engineer.......  8232.
620  Road Passenger Firemen and Helpers:   8232.
 Passenger Fireman.
621  Road Freight Firemen and Helpers      8232.
 (Through Freight): Freight Fireman.
622  Road Freight Firemen and Helpers      8232.
 (Local and Way Freight): Freight Fireman.
623  Yard Firemen and Helpers: Yard        8232.
 Fireman.
------------------------------------------------------------------------


[47 FR 53871, Nov. 30, 1982, as amended at 50 FR 947, Jan. 8, 1985]



PART 1246--NUMBER OF RAILROAD EMPLOYEES--Table of Contents




    Authority: 49 U.S.C. 721, 11145.



Sec. 1246.1  Monthly report of number of railroad employees.

    Each class I railroad shall file a Monthly Report of Number of 
Railroad Employees (Form MRRE) each month. The report should be mailed 
to Bureau of Accounts, Surface Transportation Board, Washington, DC 
20423, by the end of the month to which it applies.

[47 FR 53868, Nov. 30, 1982]
    Note: The report forms prescribed by parts 1245 and 1246 are 
available upon request from the Office of the Secretary, Surface 
Transportation Board, Washington, DC 20423.



PART 1248--FREIGHT COMMODITY STATISTICS--Table of Contents




                          Subpart A--Railroads

Sec.
1248.1  Freight commodity statistics.
1248.2  Items to be reported.
1248.3  Carload and L.C.L. traffic defined.
1248.4  Originating and connecting line traffic.
1248.5  Report forms and date of filing.
1248.6  Public inspection--railroad reports.

                        Subpart B--Commodity Code

1248.100  Commodity classification designated.
1248.101  Commodity codes required.
    Note: The report forms prescribed by part 1248 are available upon 
request from the Office of the Secretary, Surface Transportation Board, 
Washington, DC 20423.



                          Subpart A--Railroads

    Authority: 49 U.S.C. 721, 11144 and 11145.



Sec. 1248.1  Freight commodity statistics.

    All class I railroads, as described in Sec. 1240.1 of this chapter, 
subject to Part I of the Interstate Commerce Act, shall compile and 
report freight commodity statistics on the basis of the commodity codes 
named in Sec. 1248.101. Carriers shall report quarterly on the basis of 
the 3, 4 and 5-digit commodity codes named in that section. Such reports 
shall be made in conformity with the outline of terms set forth in 
Secs. 1248.2 to 1248.5, inclusive, as supplemented by instructions 
included in the appropriate report form to be supplied to the reporting 
railroads.

[47 FR 6880, Feb. 17, 1982]



Sec. 1248.2  Items to be reported.

    (a) The following items are to be reported quarterly and annually by 
class I railroads:
    (1) Average number of miles of road operated in freight service.
    (2) For each commodity code used in reporting, except that the 
number of carloads for commodity code 431, ``Small packaged freight 
shipments,'' shall be omitted, the following items:

Revenue freight originating on respondent's road:
    Terminating on line:
Number of carloads.
Number of tons (2,000 pounds).
    Delivered to connecting rail carriers.
Number of carloads.
Number of tons (2,000 pounds).
Revenue freight received from connecting rail carriers:
    Terminating on line:
Number of carloads.
Number of tons (2,000 pounds).

[[Page 204]]

    Delivered to connecting rail carriers:
Number of carloads.
Number of tons (2,000 pounds).
    Total revenue freight carried:
Number of carloads.
Number of tons (2,000 pounds).
    Gross freight revenue.

    (b) [Reserved]

[32 FR 20466, Dec. 20, 1967, as amended at 47 FR 6880, Feb. 17, 1982]



Sec. 1248.3  Carload and L.C.L. traffic defined.

    (a) Commodity codes 01 through 422 and 44 through 462, named in 
Sec. 1248.101, shall include only carload traffic. All shipments 
weighing less than 10,000 pounds shall be included in commodity code 
431, ``Small packaged freight shipments.''
    (b) A carload for the purpose of this order shall consist of a 
shipment of not less than 10,000 pounds of one commodity. A mixed 
carload for the purpose of this order shall be treated as a carload of 
that commodity which forms the major portion of the shipment in weight. 
If a single shipment is loaded into more than one car, each car used 
shall be reported as a carload. If more than one carload shipment is 
loaded into one car, each shipment shall be reported separately as a 
carload.

[32 FR 20466, Dec. 20, 1967]



Sec. 1248.4  Originating and connecting line traffic.

    (a) Revenue freight reported as received from connecting rail 
carriers shall include all shipments received from connecting rail 
carriers, either directly or indirectly, so far as apparent from 
information on the waybills or abstracts.
    (b) Revenue freight reported as originating on respondent's road 
shall include shipments originating on line and shipments received from 
water lines and highway motor truck lines, except when identified as 
having had previous rail transportation, as provided in paragraph (a) of 
this section.
    (c) Freight which receives its first line-haul on respondent's road, 
but originates on switching roads connecting directly or indirectly with 
respondent's line, shall be reported as freight originated by 
respondent.
    (d) Revenue freight reported as delivered to connecting rail 
carriers shall include shipments delivered to connecting rail carriers, 
either directly or indirectly, as far as apparent from information on 
waybills or abstracts.
    (e) Revenue freight reported as terminating on respondent's road 
shall include shipments terminating on line and shipments delivered to 
water lines and highway motor truck lines, except when identified as to 
receive further rail transportation as provided in paragraph (d) of this 
section.
    (f) Freight which receives its last line haul on respondent's line, 
but is delivered to a switching road connecting directly or indirectly 
with respondent's line, shall be reported as freight terminated by 
respondent.
    (g) Import and export traffic received from or delivered to water 
carriers and traffic from and to outlying possessions of the United 
States received from or delivered to water carriers shall be reported as 
originating or terminating at the port of entry or exit.
    (h) Traffic interchanged with connecting rail lines operating in 
Canada and Mexico shall be reported as delivered to or received from 
connecting rail carriers.
    (i) Lake cargo coal delivered to lower Lake and St. Lawrence River 
ports for transshipment by vessel shall be reported as delivered to 
connecting rail carrier. Lake cargo coal received at upper Lake ports 
shall be reported as received from connecting rail carriers.
    (j) Iron ore delivered to upper Lake ports for transshipment by 
vessel shall be reported as delivered to connecting rail carriers. Iron 
ore received at lower Lake and St. Lawrence River ports shall be 
reported as received from connecting rail carriers.
    (k) Tidewater coal to Atlantic ports shall be reported as 
``delivered to connecting rail carriers.'' Tidewater coal from Atlantic 
ports shall be reported as ``received from connecting rail carriers.''
    (l) Freight accorded transit privileges shall be reported as 
``originated on respondent's road'' at the transit point, even though 
the outbound shipment may move under transit balances or proportional 
rates.

[[Page 205]]

    (m) ``Gross freight revenue'' means respondent's gross revenue from 
freight without adjustment for absorptions or corrections.
    (n) Commodity codes 44 and 441, ``Freight forwarder traffic,'' as 
named in Sec. 1248.101, include freight traffic in carloads shipped by 
or consigned to any forwarder holding a certificate under Part IV of the 
Interstate Commerce Act.

[32 FR 20466, Dec. 20, 1967]



Sec. 1248.5  Report forms and date of filing.

    (a) Reports required from class I carriers by this section shall be 
filed in duplicate with the Bureau of Accounts, Surface Transportation 
Board, Washington, DC 20423, on forms which will be furnished to the 
carriers. Data required under Sec. 1248.2 shall be filed on Form QCS on 
or before the 60th day succeeding the close of the period for which they 
are compiled.
    (b) [Reserved]
    Note: The outline of Report Form QCS follows the tenor of the order.

[32 FR 20466, Dec. 20, 1967, as amended at 47 FR 6881, Feb. 17, 1982]



Sec. 1248.6  Public inspection--railroad reports.

    The individual commodity statistics reports of class I railroads, 
required to be filed, for the year beginning January 1, 1964, or for 
quarters thereof, and for the quarters of 1965, as the case might be, 
under the terms of Sec. 123.1, shall not be open to public inspection, 
and such required commodity statistics reports, to be filed for the 
years beginning January 1, 1965, and for the quarters of the year 
beginning January 1, 1966, and later, to the extent that they involve 
traffic of less than three shippers, reportable in one of the commodity 
reporting classes, may be excluded from a railroad's regular freight 
commodity statistics report and filed in a supplemental report which 
will not be open for public inspection, except that access to 
supplemental reports may be given upon approval by the Board.

[32 FR 20466, Dec. 20, 1967, as amended at 47 FR 6881, Feb. 17, 1982]



                        Subpart B--Commodity Code

    Authority: 49 U.S.C. 721, 11144, 11145.



Sec. 1248.100  Commodity classification designated.

    Commencing with reports for the year or quarter beginning January 1, 
1964, as the case might be, and thereafter until further order, reports 
of commodity statistics required to be made to the Board, shall be based 
on the commodity codes, up to 5 digits, in groups 01 through 40, in the 
Commodity Classification for Transportation Statistics, 1963, issued by 
the Bureau of the Budget, and on additional codes 411 through 462 shown 
in Sec. 1248.101.

[32 FR 20466, Dec. 20, 1967. Redesignated at 46 FR 9116, Jan. 28, 1981, 
and 46 FR 10745, Feb. 4, 1981]



Sec. 1248.101  Commodity codes required.

    Commodity codes required to be reported, as referred to in this 
part, are as follows:

------------------------------------------------------------------------
              Code                              Description
------------------------------------------------------------------------
01                                Farm Products.
011                                 Field Crops.
0112                                  Cotton, raw.
01121                                   Cotton in bales.
01131                                   Barley.
01132                                   Corn, except popcorn.
01133                                   Oats.
01134                                   Rice, rough.
01135                                   Rye.
01136                                   Sorghum grains.
01137                                   Wheat, except buckwheat.
01139                                   Grain, n.e.c.
0114                                  Oil seeds, oil nuts, and oil
                                   kernels, except edible tree nuts.
01144                                   Soybeans.
0115                                  Field seeds, except oil seeds.
0119                                  Miscellaneous field crops.
01193                                   Leaf tobacco.
01195                                   Potatoes, other than sweet.
01197                                   Sugar beets.
012                                 Fresh Fruits and Tree Nuts.
0121                                  Citrus fruits.
0122                                  Deciduous fruits.
01221                                   Apples.
01224                                   Grapes.
01226                                   Peaches.
0123                                  Tropical fruits, except citrus.
01232                                   Bananas.
0129                                  Miscellaneous fresh fruits and
                                   tree nuts.
01295                                   Coffee, green.
013                                 Fresh Vegetables.
0131                                  Bulbs, roots, and tubers, with or
                                   without tops except potatoes.
01318                                   Onions, dry.
0133                                  Leafy fresh vegetables.
01334                                   Celery.
01335                                   Lettuce.
0134                                  Dry ripe vegetable seeds, etc.
                                   (except artifically dried).

[[Page 206]]

 
01341                                   Beans, dry ripe.
01342                                   Peas, dry.
0139                                  Miscellaneous fresh vegetables:
01392                                   Watermelons.
01394                                   Tomatoes.
01398                                   Melons, except watermelons
                                   (cantaloupes, muskmelons, etc.).
014                                 Livestock and Livestock Products.
0141                                  Livestock.
01411                                   Cattle.
01413                                   Hogs and pigs.
01414                                   Sheep and lambs.
0142                                  Dairy farm products, except
                                   pasteurized.
0143                                  Animal fibers.
01431                                   Wool.
015                                 Poultry and Poultry Products.
0151                                  Live poultry.
0152                                  Poultry eggs.
019                                 Miscellaneous Farm Products.
0191                                  Horticultural specialities.
0192                                  Animal specialties.
08                                Forest Products
084                                 Gums and Barks, Crude.
08423                                   Latex and allied gums (crude
                                   natural rubber).
086                                 Miscellaneous Forest Products.
09                                Fresh Fish and Other Marine Products.
091                                 Fresh Fish and Other Marine
                                   Products.
0912                                  Fresh fish and whale products,
                                   including frozen unpackaged fish.
09131                                   Shells (oyster, crab, clam,
                                   etc.)
10                                Metallic Ores.
101                                 Iron Ores.
10112                                   Beneficiating-grade ore, crude.
102                                 Copper Ores.
103                                 Lead and Zinc Ores.
1031                                  Lead ores.
1032                                  Zinc ores.
104                                 Gold and Silver Ores.
105                                 Bauxite and Other Aluminum Ores.
106                                 Manganese Ores.
107                                 Tungsten Ores.
108                                 Chromium Ores.
109                                 Miscellaneous Metal Ores.
11                                Coal.
111                                 Anthracite Coal.
11111                                   Raw anthracite (lump).
11112                                   Cleaned or prepared anthracite
                                   (crushed, screened, or sized).
112                                 Bituminous Coal and Lignite.
1121                                  Bituminous coal.
13                                Crude Petroleum, Natural Gas, and
                                   Natural Gasoline.
131                                 Crude Petroleum and Natural Gas.
132                                 Natural Gasoline.
14                                Nonmetallic Minerals, Except Fuels.
141                                 Dimension Stone, quarry.
142                                 Crushed and Broken Stone, including
                                   riprap.
14211                                   Agricultural limestone.
14219                                   Crushed and broken stone,
                                   including riprap, n.e.c.
144                                 Sand and Gravel.
14411                                   Sand (aggregate and ballast).
14412                                   Gravel (aggregate and ballast).
14413                                   Industrial sand and gravel.
145                                 Clay, Ceramic and Refractory
                                   Minerals.
14511                                   Bentonite.
14512                                   Fire clay.
14514                                   Kaolin and ball clay.
147                                 Chemical and Fertilizer Minerals.
14711                                   Barite.
14713                                   Potash, soda and borate.
14714                                   Phosphate rock.
14715                                   Rock salt.
14716                                   Sulphur.
149                                 Miscellaneous Nonmetallic Minerals.
                                   Except Fuels.
14911                                   Gypsum and anhydrite.
14913                                   Native asphalt and bitumens.
14914                                   Pumice and pumicite.
19                                Ordinance and Accessories.
191                                 Guns, Howitzers, Mortars, and
                                   Related Equipment, Over 30 mm.
192                                 Ammunition, Except for Small Arms
                                   (over 30 mm.).
193                                 Full Tracked Combat Vehicles and
                                   Parts.
194                                 Sighting and Fire Control Equipment.
195                                 Small Arms, 30 mm. and Under.
196                                 Small Arms Ammunition, 30 mm. and
                                   Under.
199                                 Miscellaneous Ordnance and
                                   Accessories.
20                                Food and Kindred Products.
201                                 Meat (Including Poultry and Small
                                   Game): Fresh, Chilled, or Frozen.
2011                                  Meat, fresh or chilled, except
                                   salted.
2012                                  Meat, fresh-frozen.
2013                                  Meat products.
2014                                  Animal by-products, inedible.
20141                                   Hides, skins, and pelts, not
                                   tanned (cattle, pig, goat, sheep,
                                   mule, and horse).
2015                                  Dressed poultry, small game, and
                                   related products, fresh, chilled or
                                   canned.
2016                                  Dressed poultry, small game and
                                   related products, fresh-frozen.
202                                 Dairy Products.
2021                                  Creamery butter.
2023                                  Condensed, evaporated milk and dry
                                   milk.
2024                                  Ice cream and related frozen
                                   desserts.
2025                                  Cheese and other special dairy
                                   products.
2026                                  Processed whole milk, skim milk,
                                   cream and other fluid products.
203                                 Canned and Preserved Fruits,
                                   Vegetables and Sea Foods.
2031                                  Canned and cured sea foods.
2032                                  Canned specialties.
2033                                  Canned fruits and vegetables.
2034                                  Dried and dehydrated fruits and
                                   vegetables (except field dried) and
                                   soup mix.
2035                                  Pickled fruits and vegetables;
                                   sauces and seasoning; salad dressing.
2036                                  Fresh or frozen packaged fish.
2037                                  Frozen fruits, fruit juices,
                                   vegetables and specialties.
204                                 Grain Mill Products.
2041                                  Flour and other grain mill
                                   products.
20411                                   Wheat flour, except blended and
                                   prepared.
20421                                   Prepared feeds for animals and
                                   fowls, except canned.
20423                                   Canned feed for animals and
                                   poultry.
2043                                  Cereal preparations.
2044                                  Milled rice, flour and meal.
2045                                  Blended and prepared flour.
2046                                  Corn starch, sirup, oil, sugar and
                                   by-products (wet process).
20461                                   Corn sirup.
20462                                   Corn starch.
20463                                   Corn sugar.
205                                 Bakery Products.
206                                 Sugar (beet and cane).
2061                                  Sugar mill products and by-
                                   products.
20611                                   Raw cane and beet sugar.
20616                                   Sugar molasses, except
                                   blackstrap.
20617                                   Blackstrap molasses.
2062                                  Sugar, refined: Cane and beet.
20625                                   Sugar refining by-products.
20626                                   Pulp, molasses, beet.
207                                 Confectionery and related products.
208                                 Beverages and flavoring extracts.
20821                                   Beer, ale, porter, stout:
                                   Bottled, barrels, kegs.

[[Page 207]]

 
20823                                   Malt extract and brewers's spent
                                   grains.
2083                                  Malt.
2084                                  Wines, brandy, and brandy spirits.
20851                                   Distilled, rectified and blended
                                   liquors.
20859                                   By-products of liquor
                                   distilling.
2086                                  Bottled and canned soft drinks and
                                   carbonated and mineral waters.
2087                                  Miscellaneous flavoring extracts
                                   and flavoring sirups and compounds
                                   except chocolate syrups.
209                                 Miscellaneous Food Preparations and
                                   Kindred Products.
20911                                   Cottonseed oil, crude or
                                   refined.
20914                                   Cottonseed cake, meal and other
                                   by-products.
20921                                   Soybean oil, crude or refined.
20923                                   Soybean cake, meal, flour,
                                   grits, and other by-products.
2093                                  Vegetable and nut oils and by-
                                   products, except cottonseed and
                                   soybean.
2094                                  Marine fats and oils.
2095                                  Roasted coffee, including instant
                                   coffee.
2096                                  Shortening, table oils, margarine
                                   and other edible fats and oils,
                                   n.e.c.
2097                                  Ice, natural or manufactured.
2098                                  Macaroni, spaghetti, vermicelli,
                                   and noodles.
21                                Tobacco Products:
211                                 Cigarettes.
212                                 Cigars.
213                                 Chewing and Smoking Tobacco and
                                   Snuff.
214                                 Stemmed and Redried Tobacco.
22                                Basic Textiles:
221                                 Cotton Broad Woven Fabrics.
222                                 Man-made Fiber and Silk Broad Woven
                                   Fabrics.
223                                 Wool Broad Woven Fabrics.
224                                 Narrow Fabrics.
225                                 Knit Fabrics.
227                                 Carpets and Rugs, Textile.
228                                 Yarn and Thread.
229                                 Miscellaneous Basic Textiles.
2296                                  Tire cord and fabrics.
2297                                  Wool and mohair (scoured, combed,
                                   carbonized): Tops, noils, nubs, slubs
                                   and grease.
2298                                  Cordage and twine.
23                                Apparel and Other Finished Textile
                                   Products Including Knit.
231                                 Men's, Youths', and Boys' Clothing.
233                                 Women's, Misses', Girls', and
                                   Infants' Clothing.
235                                 Millinery, Hats and Caps.
237                                 Fur Goods.
238                                 Miscellaneous Apparel and
                                   Accessories.
239                                 Miscellaneous Fabricated Textile
                                   Products.
24                                Lumber and Wood Products, Except
                                   Furniture.
241                                 Primary Forest Products (Pulpwood,
                                   Piling, Posts, Logs, Bolts, etc.).
24114                                   Pulpwood logs.
24115                                   Pulpwood chips.
24116                                   Woodposts, poles and piling.
242                                 Lumber and Dimension Stock:
2421                                  Lumber and dimension stock:
24212                                   Sawed ties (railroads, mine,
                                   etc.).
2429                                  Miscellaneous sawmill and planing
                                   mill products (shingles, cooperage
                                   stock, etc.).
243                                 Millwork, Veneer, Plywood,
                                   Prefabricated Structural Wood
                                   Products.
2431                                  Millwood.
2432                                  Veneer and plywood.
244                                 Wooden Containers.
249                                 Miscellaneous Wood Products.
2491                                  Creosoted or oil treated wood
                                   products.
25                                Furniture and Fixtures
251                                 Household and Office Furniture.
253                                 Public Building and Related
                                   Furniture.
254                                 Partitions, Shelving, Lockers,
                                   Office, and Store Fixtures.
259                                 Miscellaneous Furniture and
                                   Fixtures.
26                                Pulp, Paper and Allied Products
261                                 Pulp and pulp mill products.
26111                                   Pulp.
262                                 Paper, except building paper.
26211                                   Newsprint.
26216                                   Coarse paper, including wrapping
                                   paper.
263                                 Paperboard, pulpboard and
                                   fiberboard, except insulating board.
264                                 Converted paper and paperboard
                                   products, except containers and
                                   boxes.
2643                                  Paper bags.
265                                 Containers and boxes, paperboard,
                                   fiberboard and pulpboard.
266                                 Building paper and building board.
2661                                  Building paper and building board.
26613                                   Wallboard.
27                                Printed Matter.
271                                 Newspapers.
272                                 Periodicals.
273                                 Books.
274                                 Miscellaneous Printed Matter.
276                                 Manifold Business Forms.
277                                 Greeting Cards, Seals, Labels, And
                                   Tags.
278                                 Blankbooks, Looseleaf Binders and
                                   Devices.
279                                 Products of Service Industries for
                                   the Printing Trades.
28                                Chemical and Allied Products
281                                 Industrial Inorganic and Organic
                                   Chemicals.
2812                                  Sodium, potassium, and other basic
                                   inorganic chemical compounds and
                                   chlorine.
28123                                   Sodium compounds, except sodium
                                   alkalies.
2813                                  Industrial gases (compressed and
                                   liquefied).
2814                                  Crude products from coal tar,
                                   petroleum and natural gas.
2816                                  Inorganic pigments.
2818                                  Miscellaneous industrial organic
                                   chemicals.
28184                                   Alcohols.
2819                                  Miscellaneous industrial inorganic
                                   chemicals.
28193                                   Sulphuric acid.
282                                 Plastics Materials and Synthetic
                                   Resins, Synthetic Rubbers and Fibers.
28212                                   Synthetic rubber.
28213                                   Synthetic organic fibers.
283                                 Drugs (Biological Products,
                                   Medicinal Chemicals, Botanical
                                   Products and Pharmaceutical
                                   Preparations).
284                                 Soap, Detergents, and Cleaning
                                   Preparations, Perfumes, Cosmetics and
                                   Other Toilet Preparations.
2841                                  Soap and other detergents, except
                                   specialty cleansers.
285                                 Paints, Varnishes, Lacquers,
                                   Enamels, and Allied Products.
286                                 Gum and Wood Chemicals.
287                                 Agricultural Chemicals.
2871                                  Fertilizers.
289                                 Miscellaneous Chemical Products.
2892                                  Explosives.
28991                                   Salt.
29                                Petroleum and Coal Products.
291                                 Products of Petroleum Refining.
29111                                   Gasoline, jet fuels and other
                                   high volatile petroleum fuels, except
                                   natural gasoline.
29112                                   Kerosene.
29113                                   Distillate fuel oil.
29114                                   Lubricating and similar oils and
                                   derivatives.
29115                                   Lubricating greases.
29116                                   Asphalt, tar and pitches
                                   (petroleum, cokeoven, coal tar).
29117                                   Residual fuel oil and other low
                                   volatile petroleum fuels.
29119                                   Products of petroleum refining,
                                   n.e.c.

[[Page 208]]

 
2912                                  Liquefied petroleum gases and coal
                                   gases.
295                                 Paving and Roofing Materials.
2951                                  Paving mixtures and blocks.
2952                                  Asphalt felt and coatings.
299                                 Miscellaneous Petroleum and Coal
                                   Products.
29911                                   Coke and coal briquettes.
30                                Rubber and Miscellaneous Plastic
                                   Products.
301                                 Tires and Inner Tubes.
302                                 Rubber Footwear.
303                                 Reclaimed Rubber.
306                                 Miscellaneous Fabricated Rubber
                                   Products.
307                                 Miscellaneous Plastics Products.
31                                Leather and Leather Products.
311                                 Leather.
312                                 Industrial Leather Belting and
                                   Packing.
313                                 Boot and Shoe Cut Stock and
                                   Findings, All Materials.
314                                 Footwear, Except Rubber.
315                                 Leather Gloves and Mittens.
316                                 Luggage, Handbags, and Other
                                   Personal Leather Goods (all
                                   materials).
319                                 Miscellaneous Leather Goods.
32                                Stone, Clay and Glass Products.
321                                 Flat Glass.
322                                 Glass and Glassware, Pressed and
                                   Blown.
3221                                  Glass containers.
324                                 Hydraulic Cement.
32411                                   Cement, hydraulic; Portland,
                                   natural, masonry, puzzolan.
325                                 Structural Clay Products.
3251                                  Brick and structural clay tile.
32511                                   Brick, except ceramic glazed and
                                   refractory brick.
3253                                  Ceramic wall and floor tile.
3255                                  Refractories, clay and nonclay.
3259                                  Miscellaneous structural clay
                                   products.
32594                                   Roofing tile.
326                                 Pottery and Related Products.
327                                 Concrete, Gypsum, and Plaster
                                   Products.
3271                                  Concrete products.
3274                                  Lime.
3275                                  Gypsum products.
328                                 Cut Stone and Stone Products.
329                                 Abrasives, Asbestos, and
                                   Miscellaneous Nonmetallic Mineral
                                   Products.
3291                                  Abrasive products.
33                                Primary Metal Products.
331                                 Steel Works and Rolling Mill
                                   Products.
33111                                   Pig iron.
33112                                   Slag.
33113                                   Coke, screenings and breeze.
33119                                   Coke oven and blast furnace
                                   products, n.e.c.
3312                                  Primary iron and steel products,
                                   except coke oven by-products.
33121                                   Steel ingot and semi-finished
                                   shapes.
3313                                  Ferro-alloys.
3315                                  Steel wire, nails, and spikes.
332                                 Iron and Steel Castings.
33211                                   Iron and steel cast pipe and
                                   fittings.
333                                 Nonferrous Metals Primary Smelter
                                   Products (Slab, Ingot, Pig, etc., and
                                   Residues).
3331                                  Primary copper and copper base
                                   alloys smelter products.
3332                                  Primary lead and lead base alloys
                                   smelter products.
3333                                  Primary zinc and zinc base alloys
                                   smelter products.
3334                                  Primary aluminum and aluminum base
                                   alloys smelter products.
335                                 Nonferrous Metal Basic Shapes.
3351                                  Copper, brass or bronze and other
                                   copper base alloy basic shapes.
3352                                  Aluminum and aluminum base alloy
                                   basic shapes except aluminum foil.
3357                                  Nonferrous wire, including
                                   insulated wire.
336                                 Nonferrous and Nonferrous Base Alloy
                                   Castings.
3361                                  Aluminum and aluminum base alloy
                                   castings.
2262                                  Brass, bronze, copper, and copper
                                   base alloy castings.
339                                 Miscellaneous Primary Metal
                                   Products.
3391                                  Iron and steel forgings.
3392                                  Nonferrous forgings.
34                                Fabricated Metal Products, Except
                                   Ordnance, Machinery, and
                                   Transportation Equipment.
341                                 Metal Cans.
342                                 Cutlery, Hand Tools, and General
                                   Hardware.
343                                 Plumbing Fixtures and Heating
                                   Apparatus, Except Electric.
3433                                  Heating equipment, except
                                   electric.
344                                 Fabricated structural metal
                                   products.
3441                                  Fabricated structural metal
                                   products.
345                                 Bolts, Nuts, Screws, Rivets,
                                   Washers, and Other Industrial
                                   Fasteners.
346                                 Metal Stampings.
348                                 Miscellaneous Fabricated Wire
                                   Products.
349                                 Miscellaneous Fabricated Metal
                                   Products.
3491                                  Metal barrels, drums, kegs, and
                                   pails.
3494                                  Valves and pipe fittings (except
                                   plumbers' brass goods and fittings),
                                   fabricated pipe and fabricated pipe
                                   fittings.
35                                Machinery, Except Electrical.
351                                 Engines and Turbines.
352                                 Farm Machinery and Equipment.
353                                 Construction, Mining and Materials
                                   Handling Equipment.
3531                                  Construction machinery and
                                   equipment.
3532                                  Mining machinery and equipment,
                                   except oil field machinery and
                                   equipment.
3533                                  Oil field machinery and equipment.
3537                                  Industrial trucks, tractors,
                                   trailers, and stackers.
354                                 Metalworking Machinery and
                                   Equipment.
355                                 Special Industry Machinery, Except
                                   Metalworking Machinery.
356                                 General Industrial Machinery and
                                   Equipment.
357                                 Office, Computing, and Accounting
                                   Machines.
358                                 Service Industry Machines.
359                                 Miscellaneous Machinery and Parts,
                                   Except Electrical.
36                                Electrical Machinery, Equipment and
                                   Supplies.
361                                 Electrical Transmission and
                                   Distribution Equipment.
362                                 Electrical Industrial Apparatus.
363                                 Household Appliances.
3631                                  Household cooking equipment, all
                                   types.
3632                                  Household refrigerators and home
                                   and farm freezers.
3633                                  Household laundry equipment.
364                                 Electric Lighting and Wiring
                                   Equipment.
365                                 Radio and TV Receiving Sets, Except
                                   Communication Types.
366                                 Communication Equipment.
367                                 Electronic Components and
                                   Accessories.
369                                 Miscellaneous Electrical Machinery,
                                   Equipment, and Supplies.
37                                Transportation Equipment.
371                                 Motor Vehicles and Motor Vehicle
                                   Equipment.
3711                                  Motor vehicles.
37111                                   Passenger cars, assembled.
37112                                   Truck tractors, and trucks,
                                   assembled.
37113                                   Motor coaches, assembled
                                   (including trolley busses) and fire
                                   department vehicles.
3712                                  Passenger car bodies and body
                                   parts.
3713                                  Truck and bus bodies and body
                                   parts.
3714                                  Motor vehicle parts and
                                   accessories.
3715                                  Truck trailers.
372                                 Aircraft and Parts.
373                                 Ships and Boats.

[[Page 209]]

 
374                                 Railroad Equipment.
375                                 Motorcycles, Bicycles, and Parts.
379                                 Miscellaneous Transportation
                                   Equipment.
38                                Instruments, Photographic and Optical
                                   Goods, Watches and Clocks.
381                                 Engineering, Laboratory, and
                                   Scientific Instruments.
382                                 Measuring, Controlling, and
                                   Indicating Instruments.
383                                 Optical Instruments and Lenses.
384                                 Surgical, Medical, and Dental
                                   Instruments and Supplies.
385                                 Ophthalmic or Opticians' Goods.
386                                 Photographic Equipment and Supplies.
387                                 Watches, Clocks, Clockwork Operated
                                   Devices, and Parts.
39                                Miscellaneous Products of
                                   Manufacturing.
391                                 Jewelry, Silverware, and Plated
                                   Ware.
393                                 Musical Instruments and Parts.
394                                 Toys, Amusement, Sporting and
                                   Athletic Goods.
3949                                  Sporting and athletic goods.
395                                 Pens, Pencils, and Other Office and
                                   Artists' Materials.
396                                 Costume Jewelry, Novelties, Buttons,
                                   and Notions.
398                                 Miscellaneous Manufactured Products--
                                   A.
399                                 Miscellaneous Manufactured Products--
                                   B.
40                                Waste and Scrap Materials.
401                                 Ashes.
402                                 Waste and Scrap, Except Ashes.
4021                                  Metal scrap, waste and tailings.
40211                                   Iron and steel scrap, wastes and
                                   tailings.
4022                                  Textile waste, scrap and
                                   sweepings.
4024                                  Paper waste and scrap.
4026                                  Rubber and plastic scrap and
                                   waste.
41                                Misc. Freight Shipments.
411                                 Misc. Freight Shipments.
41111                                   Outfits or kits.
41114                                   Articles, used except for
                                   repair, reconditioning (41115),
                                   returned empty (421), remelting
                                   4021).
41115                                   Articles, used, returned for
                                   repair, incl. for reconditioning.
412                                     Miscellaneous Commodities Not
                                   Taken in Regular Freight Service.
42                                Containers, Shipping, Returned Empty.
421                                 Containers, Shipping, Returned Empty
                                   Inc. Carriers or Devices.
422                                 Trailers, Semi-Trailers, Returned
                                   Empty.
44                                Freight Forwarder Traffic.
441                                 Freight Forwarder Traffic, Carload
                                   or Truckload.
45                                Shipper Association or Similar
                                   Traffic.
451                                 Shipper Association or Similar
                                   Traffic, Carload or Truckload.
46                                Miscellaneous Mixed Shipments Exc.
                                   Forwarder See 44 Shipper Association
                                   See 45.
461                                 All Freight Rate Shipments, N.E.C.,
                                   Inc. TOFC.
462                                 Mixed Shipments on One Factor Rates
                                   Cnstg. of Commodities Representing
                                   Two or More Major Industry Groups
                                   Where it is Impossible to Determine
                                   the Predominant Industry.
47                                Small Packaged Freight Shipments.
471                                 Small Packaged Freight Shipments,
                                   Including LCL or LTL.
------------------------------------------------------------------------


[32 FR 20466, Dec. 20, 1967. Redesignated at 46 FR 9116, Jan. 28, 1981, 
and 46 FR 10745, Feb. 4, 1981]



PARTS 1250-1252--[RESERVED]






PART 1253--RATE-MAKING ORGA-NIZATION; RECORDS AND REPORTS--Table of Contents




Sec.
1253.10  Accounts.
1253.20  Other records.
1253.30  Retention of records.

    Authority: 49 U.S.C. 721, 10706, 13703, 11144, and 11145.
    Note: The report forms prescribed by part 1253 are available upon 
request from the Office of the Secretary, Surface Transportation Board, 
Washington, DC 20423.



Sec. 1253.10  Accounts.

    Accounts shall be kept by each conference, bureau, committee, or 
other organization subject to sections 5a or 5b to record all receipts 
and expenditures of moneys. Such accounts shall be kept with sufficient 
particularity to show the facts pertaining to all transactions reflected 
in the entries made in the accounts. All receipts shall be supported by 
records, including records showing the basis for charges to members. All 
disbursements shall be supported by vouchers, payrolls, canceled checks, 
and other evidences of expenditures, including the basis for any 
apportionment of expense items to members.

[32 FR 20474, Dec. 20, 1967]



Sec. 1253.20  Other records.

    Each such organization subject to sections 5a or 5b shall maintain:
    (a)(1) A file for each proposal relating to rates, fares, 
classifications, divisions, allowances, or charges (including charges 
between carriers and compensation paid or received for the use of 
facilities and equipment), or rules and regulations pertaining thereto, 
which shall contain the complete proposal, all procedural documents 
issued, protests, memoranda, amendments, reports, etc., submitted and 
any other correspondence respecting the matter proposed. Also reports or 
minutes of all proceedings at any oral, committee or public hearing held 
thereon and the determination relating thereto;
    (2) a file covering each petition or protest filed by the 
organization against tariff publications of a member

[[Page 210]]

for suspension of rates or other matters published for such member 
carrier;
    (3) a file covering each instruction or request for publication by 
independent action.
    (b) All accounts and other records covered by this part shall be 
filed in such manner as to be readily accessible for examination by 
representatives of the Board.
    (c) All rate bureaus are required to (1) advise the Board of any 
change in legal address by notifying the Office of the Secretary and (2) 
submit information to the Board when requested.

(49 U.S.C. 10706, 11145; 5 U.S.C. 553)

[32 FR 20474, Dec. 20, 1967, as amended at 47 FR 37904, Aug. 27, 1982]



Sec. 1253.30  Retention of records.

    Each organization subject to sections 5a or 5b shall retain records 
or documents relating to its transactions or activities in accordance 
with part 1220, Preservation of Records, of this chapter.

[40 FR 50389, Oct. 29, 1975]



PARTS 1260-1269--VALUATION--Table of Contents




    Note: Forms prescribed in parts 1260-1269 are available upon request 
from the Office of the Secretary, Surface Transportation Board, 
Washington, DC 20423.



PARTS 1260-1261--[RESERVED]






PARTS 1280-1299--CLASSIFICATION AND DECLASSIFICATION OF NATIONAL SECURITY INFORMATION AND MATERIAL--Table of Contents






PART 1280--HANDLING OF NATIONAL SECURITY INFORMATION AND CLASSIFIED MATERIAL--Table of Contents




Sec.
1280.1  Purpose.
1280.2  Policy.
1280.3  Authority to classify.
1280.4  Responsibility for handling of classified documents.
1280.5  Safeguarding of classified material.
1280.6  Storage of classified documents.
1280.7  Education of employees.
1280.8  Requests for mandatory review.

    Authority: E.O. 12356.

    Source: 49 FR 7832, Mar. 2, 1984, unless otherwise noted.



Sec. 1280.1  Purpose.

    To set forth those provisions of the Surface Transportation Board 
Security Regulations to the extent that they affect the general public.



Sec. 1280.2  Policy.

    It is the policy of the Surface Transportation Board to act in 
accordance with Executive Order 12356, dated April 6, 1982, in matters 
relating to national security information.



Sec. 1280.3  Authority to classify.

    The Board does not have authority of its own to classify any of its 
internally generated documents. The only documents handled by the Board 
which are classified as confidential, secret, or top secret are those 
generated by Executive Branch Agencies with original classification 
authority.



Sec. 1280.4  Responsibility for handling of classified documents.

    (a) Responsible Official. Primary responsibility for the handling of 
classified documents shall rest with the Assistant to the Director of 
the Office of Compliance and Consumer Assistance, who is also Emergency 
Coordinator for the Board. All documents bearing the terms ``Top 
Secret,'' ``Secret,'' and ``Confidential'' shall be delivered to the 
Emergency Coordinator or his/her alternate immediately upon receipt. The 
alternate is also an Assistant to the Director of the Office of 
Compliance and Consumer Assistance as set forth in Sec. 1280.4(b) of the 
rules. All potential recipients of such documents shall be advised of 
the name of the Emergency Coordinator. In the event that the Emergency 
Coordinator or his/her alternate is not available to receive such 
documents, they shall be turned over to the Associate Director, Office 
of Compliance and Consumer Assistance, and secured, unopened, in the 
combination safe located in Room 5325 of the headquarters building until 
the Emergency Coordinator or alternate is available. All material not 
immediately deliverable to either the Emergency Coordinator, alternate, 
or the

[[Page 211]]

Associate Director, Office of Compliance and Consumer Assistance, shall 
be delivered at the earliest opportunity. Under no circumstances shall 
classified material that cannot be delivered to the Emergency 
Coordinator be stored other than in the designated safe in Room 5325 of 
the STB headquarters building.
    (b) The alternate to the Emergency Coordinator for the receipt and 
handling of documents mentioned in paragraph (a) of this section, shall 
be the other Assistant to the Director, Office of Compliance and 
Consumer Assistance.
    (c) Any person whose position requires access to classified 
information must execute Form SF 189.
    (d) Any contracts with media representatives by personnel with 
access to classified material and involving such material will be 
cleared through the Emergency Coordinator and more than one person shall 
be present during any briefing or interview.



Sec. 1280.5  Safeguarding of classified material.

    (a) Reproduction of classified material shall take place only when 
absolutely necessary, and in accordance with section 2001.46 of the 
Directive. Should copies be made, they are subject to the same controls 
as the original document. Records showing the number and distribution of 
copies shall be maintained by the Emergency Coordinator and the log 
stored with the original documents.
    (b) Any suspected or actual unauthorized disclosures of classified 
information shall be reported to the Emergency Coordinator or Alternate. 
An immediate investigation will be undertaken by the Emergency 
Coordinator or Alternate to establish all facts surrounding the 
disclosure. The Emergency Coordinator or Alternate shall ascertain the 
nature of the information disclosed and the extent to which it has been 
disseminated and will maintain records of disclosures as evaluated and 
investigated.
    (c) Any suspected or actual unauthorized disclosure of classified 
information will be reported as soon as possible to the Department of 
Justice and the Information Security Oversight Office.
    (d) Any unauthorized disclosure of classified information or any 
failure to cooperate with the investigation of unauthorized disclosures 
by an employee shall be cause for appropriate disciplinary or other 
remedial action as provided in the Board's Canons of Conduct, 49 CFR 
1000.735-31.

[49 FR 7832, Mar. 2, 1984, as amended at 54 FR 38998, Sept. 22, 1989]



Sec. 1280.6  Storage of classified documents.

    All classified documents shall be stored in the safe located in Room 
5325 of the STB headquarters building. In those instances where the 
Emergency Coordinator is not available to receive classified documents, 
they may be stored, unopened, in the safe located in Room 5325.



Sec. 1280.7  Education of employees.

    All employees who have been granted a security clearance and who 
have occasion to handle classified materials shall be advised of the 
procedures outlined in 49 CFR part 1280. They shall also be required to 
review Executive Order 12356 and appropriate directives of the 
Information Security Oversight Office (ISOO). This shall be achieved by 
a memorandum to all affected employees at the time these procedures are 
implemented, and by appropriate instructions to new employees receiving 
security clearances in the future.



Sec. 1280.8  Requests for mandatory review.

    Because the Board does not itself generate classified documents, any 
requests made for mandatory review shall be coordinated by the Emergency 
Coordinator with appropriate officials of the Department or Agency 
responsible for issuance of the document involved.



PARTS 1281--1299 [RESERVED]




[[Page 212]]



              SUBCHAPTER D--CARRIER RATES AND SERVICE TERMS





PART 1300--DISCLOSURE, PUBLICATION, AND NOTICE OF CHANGE OF RATES AND OTHER SERVICE TERMS FOR RAIL COMMON CARRIAGE--Table of Contents




Sec.
1300.1  Scope; definitions.
1300.2  Disclosure requirement for existing rates.
1300.3  Response to request for establishment of a new rate.
1300.4  Notice requirement.
1300.5  Additional publication requirement for agricultural products and 
          fertilizer.

    Authority: 49 U.S.C. 721(a) and 11101(f).

    Source: 61 FR 35140, July 5, 1996, unless otherwise noted.



Sec. 1300.1  Scope; definitions.

    (a) The provisions of this part address the requirements imposed on 
rail carriers by 49 U.S.C. 11101(b), 11101(c), 11101(d) and 11101(f).
    (b) Except as otherwise provided in this section, the provisions of 
this part apply to any common carriage transportation or service 
provided by a rail carrier subject to the jurisdiction of the Surface 
Transportation Board under 49 U.S.C. 10501.
    (c) The provisions of this part do not apply to any transportation 
or service provided by a rail carrier under a contract authorized under 
49 U.S.C. 10709 or former 49 U.S.C. 10713 (repealed effective January 1, 
1996).
    (d) The provisions of this part do not apply to any transportation 
or service provided by a rail carrier to the extent that such 
transportation or service is exempted from rate notice and disclosure 
requirements pursuant to an exemption issued under 49 U.S.C. 10502 or 
former 49 U.S.C. 10505 (repealed effective January 1, 1996).
    (e) For the purposes of this part, ``service terms'' means all 
classifications, rules, and practices that affect the rates, charges, or 
level of service for rail transportation.



Sec. 1300.2  Disclosure requirement for existing rates.

    (a) A rail carrier must disclose to any person, upon formal request, 
the specific rate(s) requested (or the basis for calculating the 
specific rate(s)), as well as all charges and service terms that may be 
applicable to transportation covered by the rate(s). For purposes of 
Sec. 1300.4(a)(1) of this part, a formal request under this part is one 
that clearly notifies the railroad that the requester seeks not only 
immediate information but also notification of any future increases in 
the rate(s) involved or changes in pertinent service terms.
    (b) The information provided by a rail carrier under this section 
must be provided immediately. (It is expected that the response will be 
sent within hours, or at least by the next business day, in most 
situations.) Such information may be provided either in written or 
electronic form as agreed to by the parties. If the parties cannot 
agree, such information is to be provided in electronic (non-passive) 
form where both parties have the requisite capabilities; otherwise, it 
is to be provided in writing.
    (c) A rail carrier may, at its option, require that all requests 
submitted under this section be in written or electronic form, although 
the carrier may permit oral requests.



Sec. 1300.3  Response to request for establishment of a new rate.

    Where a shipper or a prospective shipper or person acting on behalf 
of a shipper or a prospective shipper requests that the carrier 
establish a rate in the absence of an existing rate for particular 
transportation, the carrier must promptly establish and provide to the 
requester a rate and applicable service terms. The information may be 
provided either in written or electronic form, as agreed to by the 
parties. If the parties cannot agree, such information is to be provided 
in electronic (non-passive) form where both parties have the requisite 
capabilities; otherwise, it is to be provided in writing. The response

[[Page 213]]

should be provided as soon as reasonably possible, but no later than 10 
business days from receipt of the request. If a carrier determines that 
additional information is required from the requester before a rate or 
term can be established, the carrier must so notify the requester as 
soon as possible, but no later than 10 business days after receipt of 
the request. Once the additional information is received, the carrier 
must set the rate and related service terms, and relay them to the 
requester, as soon as reasonably possible, but no later than 10 business 
days from the receipt of the additional information. (However, the 
parties may agree to a different time period, in which case these time 
periods would not apply.) A rail carrier may, at its option, require 
that requests submitted under this section be in written or electronic 
form, although the carrier may permit oral requests.



Sec. 1300.4  Notice requirement.

    (a) A rail carrier may not increase any rates or charges, or change 
any service terms (except for changes that are equivalent to rate 
reductions), unless 20 days have expired after written or electronic 
notice has been provided to all persons who, within the previous 12 
months:
    (1) Have formally requested under Secs. 1300.2 or 1300.3 of this 
part the affected rates or service terms; or
    (2) Have made arrangements with the carrier for a future shipment 
that would be subject to the increased rates or changed service terms.
    (b) The notice required by this section may be in written or 
electronic form, as agreed to by the parties. If the parties cannot 
agree, the information is to be provided in electronic (non-passive) 
form where both parties have the requisite capabilities; otherwise, it 
is to be provided in writing.
    (c) For purposes of this section, a mailed notice is deemed 
``provided'' on the date such notice is postmarked.
    (d) The notice required by this section must clearly identify the 
increases in rates or charges or the changes in service terms.



Sec. 1300.5  Additional publication requirement for agricultural products and fertilizer.

    (a) With respect to transportation of agricultural products 
(including grain, as defined in 7 U.S.C. 75, and all products thereof) 
and fertilizer, a rail carrier shall publish, make available, and retain 
for public inspection its currently effective rates, schedules of rates, 
charges, and other service terms, and any scheduled changes to such 
rates, charges, and service terms. This requirement is in addition to 
the requirements imposed by Secs. 1300.2, 1300.3, and 1300.4 of this 
part.
    (b) The information published under this section must include an 
accurate description of the services offered to the public; must provide 
the specific applicable rates (or the basis for calculating the specific 
applicable rates), charges, and service terms; and must be arranged in a 
way that allows for the determination of the exact rate, charges, and 
service terms applicable to any given shipment (or to any given group of 
shipments). Increases, reductions and other changes must be symbolized 
or highlighted in some way to facilitate ready identification of the 
changes, the nature of those changes and their effective dates.
    (c) A rail carrier must make the information available at offices 
where it normally keeps rate information. Access to the information at 
such offices must be provided to any person, without charge, during 
normal business hours.
    (d) A rail carrier must also make the required publications 
available to all persons (hereinafter referred to as subscribers) who 
have subscribed to a publication service operated either by the rail 
carrier itself or by an agent acting at the rail carrier's direction. 
Such publications may be made available either in printed or in 
electronic form as agreed to by the parties. Any scheduled changes must 
be published in a manner that provides timely notice to subscribers. A 
rail carrier may impose reasonable charges for such publications. 
Publications may be limited to the specific information requested by the 
subscriber, and charges for such limited publications should be set 
accordingly.

[[Page 214]]



PART 1301 [RESERVED]






PART 1302--EXPORT AND IMPORT SHIPMENTS; RAILROADS--Table of Contents




 Charges for Rail Transportation When Water Transportation Performed in 
         Vessels Not Documented Under Laws of the United States

Sec.
1302.41  Suspension of statute.
1302.42  Further suspension of statute.
1302.43  Applicable rates on shipments in transit when statute becomes 
          effective.

    Authority: 49 U.S.C. 884.

    Source: 32 FR 20541, Dec. 20, 1967, unless otherwise noted.

    Cross References: For United States Customs Service, Department of 
the Treasury; see Customs Duties, 19 CFR Chapter I. For Foreign-Trade 
Zones Board; see Commerce, 15 CFR Chapter IV. For regulations of 
International Trade Administration concerning foreign trade statistics; 
see Commerce, 15 CFR Chapter III.

 Charges for Rail Transportation When Water Transportation Performed in 
         Vessels Not Documented Under Laws of the United States



Sec. 1302.41  Suspension of statute.

    The provisions of section 28 of the Merchant Marine Act, 1920, are 
hereby further suspended from and including the first day of January, 
1921, until further order of this Board.



Sec. 1302.42  Further suspension of statute.

    (a) Order of March 11, 1924, as modified, which terminated order of 
June 14, 1920, as modified, suspending provisions of section 28 of the 
Merchant Marine Act, 1920, until further order of the Board, is hereby 
vacated and set aside.
    (b) The provisions of said order of June 14, 1920, as modified by 
the supplemental orders of July 27, 1920, December 11, 1920, and 
February 7, 1921, specified in paragraph (a) of this section, shall 
continue in force until further order of the Board.



Sec. 1302.43  Applicable rates on shipments in transit when statute becomes effective.

    The following conditions are hereby prescribed as supplemental to 
the orders aforesaid suspending the provisions of section 28 of the 
Merchant Marine Act, that is to say, that notwithstanding the provisions 
of the aforesaid section 28 may become effective during the time when 
export or import shipments are in transit to or from the ports of export 
or import the following conditions shall be observed.
    (a) With respect to all export shipments delivered to and receipted 
for by common carriers subject to the provisions of section 6 of the 
Interstate Commerce Act (section 6, 24 Stat. 380, as amended; 49 U.S.C. 
6(13)) the rates to the ports in force and applicable upon said 
shipments via the lines of said carriers upon the date of delivery to 
and receipt by such carriers shall be applied to said shipments; and,
    (b) With respect to all import shipments delivered to and receipted 
for by common carriers subject to the provisions of section 6 of the 
Interstate Commerce Act (49 U.S.C. 6 (13)) the rates from the ports in 
force and applicable to said shipments over the lines of said carriers 
upon the date of delivery to and receipt by such carriers shall be 
applied to said shipments.



PART 1305--DISCLOSURE AND NOTICE OF CHANGE OF RATES AND OTHER SERVICE TERMS FOR PIPELINE COMMON CARRIAGE--Table of Contents




Sec.
1305.1  Scope; definitions.
1305.2  Disclosure requirement for existing rates.
1305.3  Response to request for establishment of a new rate.
1305.4  Notice requirement.

    Authority: 49 U.S.C. 721(a) and 15701(e).

    Source: 61 FR 35141, July 5, 1996, unless otherwise noted.



Sec. 1305.1  Scope; definitions.

    (a) The provisions of this part address the requirements imposed on 
pipeline carriers by 49 U.S.C. 15701(b) and 15701(c). Such requirements 
apply to pipeline carriers only with respect to the transportation of 
commodities other than water, gas, or oil.

[[Page 215]]

    (b) Except as otherwise provided in paragraph (c) of this section, 
the provisions of this part apply to any transportation or service 
provided by a pipeline carrier subject to the jurisdiction of the 
Surface Transportation Board under 49 U.S.C. 15301.
    (c) The provisions of this part do not apply to any transportation 
or service provided by a pipeline carrier to the extent that such 
transportation or service is exempted from rate notice and disclosure 
requirements pursuant to 49 U.S.C. 15302.
    (d) For the purposes of this part, service terms means all 
classifications, rules, and practices that affect the rates, charges, or 
level of service for pipeline transportation.



Sec. 1305.2  Disclosure requirement for existing rates.

    (a) A pipeline carrier must disclose to any person, on request, the 
specific rate(s) requested (or the basis for calculating the specific 
rate(s)), as well as all charges and service terms that may be 
applicable to transportation covered by those rate(s).
    (b) The information provided by a pipeline carrier under this 
section must be provided immediately. (It is expected that the response 
will be sent within hours, or at the latest by the next business day, in 
most situations.) Such information may be provided either in writing or 
in electronic form, as agreed to by the parties. If the parties cannot 
agree, such information is to be provided in electronic form where both 
parties have the requisite capabilities; otherwise, it is to be provided 
in writing.
    (c) A pipeline carrier may, at its option, require that all requests 
submitted under this section be in writing or electronic form, or the 
carrier may permit oral requests.



Sec. 1305.3  Response to request for establishment of a new rate.

    Where a shipper or a prospective shipper, or a person acting on 
behalf of a shipper or a prospective shipper, requests that the carrier 
establish a rate in the absence of an existing rate for particular 
transportation, the carrier must promptly establish and provide to the 
requester a rate and applicable service terms. The information may be 
provided either in writing or in electronic form, as agreed to by the 
parties. If the parties cannot agree, such information is to be provided 
in electronic form where both parties have the requisite capabilities; 
otherwise, it is to be provided in writing. The response should be 
provided as soon as reasonably possible, but no later than 10 business 
days from receipt of the request. If a carrier determines that 
additional information is required from the requester before a rate or 
term can be established, the carrier must so notify the requester as 
soon as possible, but no later than 10 business days after receipt of 
the request. Once the addition