[Title 49 CFR ]
[Code of Federal Regulations (annual edition) - October 1, 1996 Edition]
[From the U.S. Government Printing Office]



F8091

I95 

I0149 

I02Transportation 

ï¿½iï¿½I03PART 1200 TO END

Q10 

I04Revised as of October 1, 1996

Q08

I10CONTAINING 

I10A CODIFICATION OF DOCUMENTS 

I10OF GENERAL APPLICABILITY 

I10AND FUTURE EFFECT

Q10 

I11AS OF OCTOBER 1, 1996

Q08 

I11T3With AncillariesT1

Q08

I20Published by 

I20the Office of the Federal Register 

I20National Archives and Records

I20Administration

Q06 

I20as a Special Edition of 

I20the Federal Register 

Q99


F80927
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ï¿½iiï¿½I25Q99Q99Q99Q30I25U.S. GOVERNMENT PRINTING OFFICE I25WASHINGTON : 199ï¿½MDSUï¿½6ï¿½MDNMï¿½ I96 I26For sale by U.S. Government Printing OfficeI26Superintendent of Documents, Mail Stop: SSOP, Washington, DC 20402ï¿½099328

F80928
ï¿½iiiï¿½I01Table of Contents I05T3PageT1 I40Explanation I41vI42Title 49: I44Subtitle B_Other Regulations Relating to Transportation_Continued: I45Chapter X_Surface Transportation Board, Department of Transportation_Continued I415I42Finding Aids:I43Table of CFR Titles and ChaptersI41363I43Alphabetical List of Agencies Appearing in the CFR I41379 I43Redesignation Table I41389 I43List of CFR Sections Affected I41391

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I22DT3Cite this Code:T1CFR
I11
I22DT3To cite the regulations in this volume use title, part and section number. Thus, T149 CFR 1200.1 T3refers to title 49, part 1200, section 1.
Q04rn,s,n
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F80088
ï¿½vï¿½I06G4T1Explanation

S8092

I11The 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. 

I11Each volume of the Code is revised at least once each calendar year and issued on a quarterly basis approximately as follows: 
Q02

I37Title 1 through Title 16 Las of January 1 

I37Title 17 through Title 27 Las of April 1 

I37Title 28 through Title 41 Las of July 1 

I37Title 42 through Title 50 Las of October 1 

I11The appropriate revision date is printed on the cover of each volume. 
Q02

I10LEGAL STATUS 
Q02

I11The 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). 

Q02

S8092

I10HOW TO USE THE CODE OF FEDERAL REGULATIONS 

Q02

I11The 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. 

I11To determine whether a Code volume has been amended since its revision date (in this case, October 1, 1996), 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. 
Q02

I10EFFECTIVE AND EXPIRATION DATES 
Q02

I11Each 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 exercised by the user in determining the actual effective date. In instances where the effective date is beyond the cut-off date for the 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.
Q02

I10OMB CONTROL NUMBERS
Q02

I11The Paperwork Reduction Act of 1980 (Pub. L. 96ï¿½09511) requires Federal agencies to display an OMB control number with their information collection request. ï¿½viï¿½Many 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. 
Q02

I10OBSOLETE PROVISIONS 
Q02

I11Provisions 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, 1949ï¿½091963, 1964ï¿½091972, or 1973ï¿½091985, 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. 
Q02

I10CFR INDEXES AND TABULAR GUIDES 
Q02

I11A subject index to the Code of Federal Regulations is contained in a separate volume, revised annually as of January 1, entitled CFR T4Index and Finding Aids. T1This volume contains the Parallel Table of Statutory Authorities and Agency Rules (Table I), and Acts Requiring Publication in the Federal Register (Table II). A list of CFR titles, chapters, and parts and an alphabetical list of agencies publishing in the CFR are also included in this volume. 

I11An index to the text of ``Title 3_The President'' is carried within that volume.

I11The 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. 

I11A List of CFR Sections Affected (LSA) is published monthly, keyed to the revision dates of the 50 CFR titles. 
Q02

I10REPUBLICATION OF MATERIAL
Q02

I11There are no restrictions on the republication of material appearing in the Code of Federal Regulations.
Q02

I10INQUIRIES 
Q02

I11For 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 oddï¿½09numbered pages.

I11For inquiries concerning CFR reference assistance, call 202ï¿½09523ï¿½095227 or write to the Director, Office of the Federal Register, National Archives and Records Administration, Washington, DC 20408. 


I10SALES

I11The Government Printing Office (GPO) processes all sales and distribution of the CFR. For payment by credit card, call 202ï¿½09512ï¿½091800, Mï¿½09F 8 a.m. to 4 p.m. e.s.t. or fax your order to 202ï¿½09512ï¿½092233, 24 hours a day. For payment by check, write to the Superintendent of Documents, Attn: New Orders, P.O. Box 371954, Pittsburgh, PA 15250ï¿½097954. For GPO Customer Service call 202ï¿½09512ï¿½091803. 


I16T4Richard L. Claypoole,

I17T3Director, 

I18Office of the Federal Register. 

I19October 1, 1996.



F80928
ï¿½viiï¿½I02THIS TITLE I11Title 49_T4T4TransportationT1T1 is composed of seven volumes. The parts in these volumes are arranged in the following order: Parts 1ï¿½0999, parts 100ï¿½09185, parts 186ï¿½09199, parts 200ï¿½09399, parts 400ï¿½09999, parts 1000ï¿½091199, part 1200 to End. The first volume (parts 1ï¿½0999) contains current regulations issued under subtitle A_Office of the Secretary of Transportation; the second volume (parts 100ï¿½09185) and the third volume (parts 186ï¿½09199) contain the current regulations issued under chapter I_Research and Special Programs Administration (DOT); the fourth volume (parts 200ï¿½09399) contains the current regulations issued under chapter II_Federal Railroad Administration (DOT), and chapter III_Federal Highway Administration (DOT); the fifth volume (parts 400ï¿½09999) 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 1000ï¿½091199) and the seventh volume (part 1200 to End) both contain current regulations issued under chapter X_Surface Transportation Board, Department of Transportation. The contents of these volumes represent all current regulations codified under this title of the CFR as of October 1, 1996.Q06I11In the volume containing parts 100ï¿½09185, see ï¿½1A172.101 for the Hazardous Materials Table, and ï¿½1A172.102 for the Optional Hazardous Materials Table. An Identification Number Cross Reference Index to Proper Shipping Names in ï¿½1A172.101 and 172.102 appears at the beginning of part 172. The Federal Motor Vehicle Safety Standards appear in part 571.Q06I11Redesignation tables for chapter X_Surface Transportation Board, Department of Transportation appear in the Finding Aids section of the sixth and seventh volumes.Q06I11For 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. 



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[[Page 1]]

                                                                     HN




                        TITLE 49--TRANSPORTATION




                  (This book contains part 1200 to end)

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

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

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

[[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
1202-1205  
  [Reserved]
1206            Common and contract motor carriers of 
                    passengers..............................         165

                PARTS 1220-1239--PRESERVATION OF RECORDS

1220            Preservation of records.....................         242

                        PARTS 1240-1259--REPORTS

1241            Annual, special, or periodic reports--
                    Carriers subject to Part I of the 
                    Interstate Commerce Act.................         246
1242            Separation of common operating expenses 
                    between freight service and passenger 
                    service for railroads...................         247
1243            Quarterly operating reports--railroads......         261
1244            Waybill analysis of transportation of 
                    property--railroads.....................         261
1245            Classification of railroad employees; 
                    reports of service and compensation.....         267
1246            Number of railroad employees................         280
1248            Freight commodity statistics................         280
1249            Reports of motor carriers...................         286
1250-1252  
[Reserved]
[[Page 6]]

1253            Rate-making organization; records and 
                    reports.................................         289
                       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.................         290
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................         293
1301  
  [Reserved]
1302            Export and import shipments; railroads......         295
1305            Disclosure and notice of change of rates and 
                    other service terms for pipeline common 
                    carriage................................         295
1312            Regulations for the publication, posting and 
                    filing of tariffs, schedules and related 
                    documents of motor, pipeline, and water 
                    carriers, and household goods freight 
                    forwarders..............................         297
1313            Railroad contracts entered into pursuant to 
                    49 U.S.C. 10713.........................         343

1320            Extension of credit to shippers by rail 
                    common carriers, motor common carriers, 
                    water common carriers, and household 
                    goods freight forwarders................         353
1321-1324  
  [Reserved]
1325            Extension of credit to candidates for 
                    Federal office or their representatives.         357
1331            Applications under 49 U.S.C. 10706 to 
                    establish or control agreements between 
                    or among carriers.......................         357
1332            Filing contracts for surface mail 
                    transportation..........................         359

[[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: Sec. 20, 24 Stat. 386; 49 U.S.C. 20; sec. 220(a), 49 
Stat. 563; 49 U.S.C. 320; sec. 313(a), 54 Stat. 944; 49 U.S.C. 913; sec. 
412(a), 56 Stat. 294; 49 U.S.C. 1012.



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 Commission, based on generally accepted accounting principles for 
which there is authoritative support, provided that any variance from 
this Commission'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 Commission considers such standards 
appropriate for the Commission's accounting regulations, the Bureau of 
Accounts shall issue an Accounting Series Circular (ASC) requiring 
carriers under the Commission's jurisdiction to follow the new standards 
in their accounts and reports filed with the Commission. 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 Commission 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 Commission'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 
Commission'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 Commission. The carriers and interested 
parties shall be allowed 45 days following the ASC's service date to 
submit comments to the Commission. The Commission 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.

[[Page 8]]

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.
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.

[[Page 9]]

                          General Expenditures

70  General expenditures.
76  Interest during construction.

                         Other Property Accounts

80  Other elements of investment.
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.

[[Page 10]]



               GENERAL BALANCE SHEET ACCOUNTS EXPLANATIONS
                                 Assets
                             Current Assets

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.
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.

[[Page 11]]

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.


                  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. Commission means the Interstate Commerce Commission.
    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

[[Page 12]]

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 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,

[[Page 13]]

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.
    (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

[[Page 14]]

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 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

[[Page 15]]

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 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

[[Page 16]]

Commission 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.
    (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 Commission, 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

[[Page 17]]

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.
    (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 Commission.

    (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 Commission 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) Commission 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 Commission. 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.


[[Page 18]]


    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 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 Commission 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 Commission 
unless the changes have first been authorized by the Commission.
    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 Commission.
    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

[[Page 19]]

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 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 Commission 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.

[[Page 20]]

    (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 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 Commission. 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.

[[Page 21]]

    (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 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 Commission. 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 Commission 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 Commission.

[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 Commission 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 
Commission for consideration and decision.

[[Page 22]]

    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 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:

[[Page 23]]

    (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;
    (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 Commission 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 Commission 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

[[Page 24]]

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 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

[[Page 25]]

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 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 Commission of the amount it proposes to adopt and 
thereafter makes no change in the amount unless authorized by the 
Commission. 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.

[[Page 26]]

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 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

[[Page 27]]

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

    1The 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

[[Page 28]]

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 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) classifed 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 Commission 
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,

[[Page 29]]

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]

    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 Commission 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

[[Page 30]]

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 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 Commission 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 Commission. 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

[[Page 31]]

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 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 Commission 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 Commission.
    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 Commission, 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

[[Page 32]]

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 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 Commission 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

[[Page 33]]

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]

    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 Commission, 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.

[[Page 34]]

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).
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.

[[Page 35]]

                 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.
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,

[[Page 36]]

    (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 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 
Commission.

[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).

[[Page 37]]

    (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 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 Commission 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 Commission any repair cost by car 
type methodology which does not agree with item (c) above. The 
Commission 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

[[Page 38]]

of developing and maintaining the required system. Waivers shall be 
directed to the Commission's Accounting and Valuation Board.
    (f) Equipment repair cost records, including the allocation methods 
used, shall be maintained and made available to the Commission 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]

    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 Commission.
    (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.

[[Page 39]]

    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 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]

[[Page 40]]



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 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 Commission, 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 Commission 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;

[[Page 41]]

    (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 Commission for review and approval 
a report on depreciation studies and proposed depreciation rates every 
three years for equipment property, and ever 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 Commission. 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 Commission. 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]


[[Page 42]]


    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 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

[[Page 43]]

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 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 
Commission, 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

[[Page 44]]

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 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

[[Page 45]]

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-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 Commission 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 
Commission.

    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

[[Page 46]]

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 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 Commission.

[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 Commission, 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,

[[Page 47]]

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 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

[[Page 48]]

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 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

[[Page 49]]

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 
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.

[[Page 50]]

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 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

[[Page 51]]

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 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.

[[Page 52]]

    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
 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.


[[Page 53]]


    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.
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

[[Page 54]]

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.

                   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.

[[Page 55]]

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 
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

[[Page 56]]

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.
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

[[Page 57]]

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.
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.

[[Page 58]]

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 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

[[Page 59]]

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.
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.


[[Page 60]]


    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, 
``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.

[[Page 61]]

                                  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 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

[[Page 62]]

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 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.

[[Page 63]]

    (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.
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.

[[Page 64]]

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.
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 Commission 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.

[[Page 65]]

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 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

[[Page 66]]

applied to reduce the amount of loss otherwise chargeable to the 
accumulated depreciation account.
    (c) A carrier may apply to the Commission 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 
Commission 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 Commission 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 Commission 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 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.

[[Page 67]]

    (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 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.

[[Page 68]]

    (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.
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

[[Page 69]]

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 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

[[Page 70]]

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--Table of Contents




    (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 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:

[[Page 75]]



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


[[Page 76]]

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 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 
Commission 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

[[Page 77]]

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
    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-

[[Page 78]]

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:
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,

[[Page 79]]

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.....................................    21-21-01
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:

[[Page 80]]



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--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 Commission 
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--Table of Contents




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.

[[Page 81]]

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 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

[[Page 82]]

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:

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:

[[Page 83]]



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
                                                                        

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
                                                                        


[[Page 84]]

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 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
                                                                        


[[Page 85]]

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
                                                                        

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

[[Page 86]]

                                                                        
    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
    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

[[Page 87]]

                                                                        
    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--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

[[Page 88]]

                                                                        
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 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

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    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 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

[[Page 90]]

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
    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 Commission 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
                                                                        


[[Page 91]]

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
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

[[Page 92]]

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 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,

[[Page 93]]

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 
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,

[[Page 94]]

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.
    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.

[[Page 95]]

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 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 Commission. 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

[[Page 96]]

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 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 Commission. 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

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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 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.

[[Page 98]]

    (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.
    (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

[[Page 99]]

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 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

[[Page 100]]

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 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.

[[Page 101]]

    (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, 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

[[Page 102]]

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.



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,

[[Page 103]]

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]
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

[[Page 104]]

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 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 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.
531  Railway operating expenses.
    This account shall include total expenses caused by operations, as 
shown in the primary expense accounts provided in these regulations.

[[Page 105]]

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 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.

[[Page 106]]

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 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 Commission; 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

[[Page 107]]

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 Commission.
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 Commission.
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 
Commission.
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 Commission.
    (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

[[Page 108]]

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 Commission.

                        Form of Income Statement                        
                                                                        
----------------------------I. Ordinary Items---------------------------
                                                                        
501  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\.........................  ......
                                                                 =======
                                                                        
                            II. Other Income                            
                                                                        
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  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................................................  ......
                                                                 =======
                                                                        
                III. Miscellaneous Deductions From Income               
                                                                        
534  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..........................  ......
                                                                        
                            IV. Fixed Charges                           
                                                                        
546  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..................................  ......
                                                                 =======
                                                                        
                           V. Other Deductions                          
                                                                        
546  Interest on funded debt: (c) Contingent interest...........  ......
                                                                        
                     VI. Unusual or Infrequent Items                    
                                                                        
555  Unusual or infrequent items (debt) credit..................  ......
  Income (loss) from continuing operations (before income taxes)  ......
                                                                        
                     VII. Provision for Income Taxes                    
                                                                        
556  Income taxes on ordinary income:                                   
  Federal income taxes..........................................  ......
  State income taxes............................................  ......
  Other income taxes............................................  ......
557  Provision for deferred income taxes........................  ......
  Income from continuing operations.............................  ......
                                                                        
                      VIII. Discontinued Operations                     
                                                                        
560  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....................  ......
                                                                 =======
                                                                        
             IX. Extraordinary Items and Accounting Changes             
                                                                        
570  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

[[Page 109]]

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 Commission.
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 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 Commission.



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 Commission.
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.

[[Page 110]]



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 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.


[[Page 111]]


    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.

    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

[[Page 112]]

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,'' 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

[[Page 113]]

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]

                              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 
Commission 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

[[Page 114]]

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 
Commission, 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.

                               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 Commission.

    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,

[[Page 115]]

``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 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 Commission.

    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

[[Page 116]]

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 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

[[Page 117]]

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 Commission 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, 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 
Commission, and any resultant adjustment of such provision shall be 
referred to the Commission 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.)

[[Page 118]]

                    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 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;

[[Page 119]]

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 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.

[[Page 120]]

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 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

[[Page 121]]

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 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 Commission 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.

[[Page 122]]

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 Commission 
under provisions of the Interstate Commerce Act and similar securities 
issued or assumed prior to 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 Commission.
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,

[[Page 123]]

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.
    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

[[Page 124]]

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 Commission. 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.
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 Commission approval shall be required 
for clearance of balances in accrued liability subaccounts which were 
originally established by authority of the Commission.
    (d) Estimates of amounts payable within one year covering any 
liability included in this account shall be transferred to account 759, 
``Accrued accounts payable.''

[[Page 125]]

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 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

[[Page 126]]

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.''
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 
Commission 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 Commission.
    (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 
Commission 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 
Commission 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,

[[Page 127]]

the stated value of no par stock, or the agreed purchase price or the 
price authorized by the Commission 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 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 representig 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

[[Page 128]]

capitalized by stock dividends or otherwise with the approval of the 
Commission, 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 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 Commission.
    (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                                 
Current assets:                                                         
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.              
                                                                        
Special funds:                                                          
715.                               Sinking funds.                       
716.                               Capital funds.                       
717.                               Other funds.                         
                                     Total special funds.               
                                                                        

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Investments:                                                            
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.                 
                                                                        
Tangible property:                                                      
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.           
                                                                        
Intangible property:                                                    
739.                               Organization expenses.               
                                                                        
Other assets and deferred debits:                                       
741.                               Other assets.                        
743.                               Other deferred debits.               
744.                               Accumulated deferred income tax      
                                    debits.                             
                                     Total other assets and deferred    
                                    debits.                             
                                     Total assets.                      
                                                                        
                  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.      
                                     Total current liabilities.         
                                                                        
Long-term debt due after one year:\1\                                   
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.                               
                                                                        
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.                   
                                     Total other long-term liabilities. 
                                                                        
Deferred credits:                                                       
783.                               Deferred revenues--transfers from    
                                    government authorities.             
784.                               Other deferred credits.              
786.                               Accumulated deferred income tax      
                                    credits.                            
                                     Total deferred credits.            
                                                                        
Shareholders' equity:                                                   
                                                                        
  Capital stock:                                                        
791.                               Capital stock.                       
792.                               Liability for conversion of capital  
                                    stock.                              
793.                               Discount on capital stock.           
                                     Total capital stock.               
                                                                        
  Additional capital:                                                   
794.                               Premiums and assessments on capital  
                                    stock.                              
795.                               Other capital.                       
                                     Total additional capital.          
                                                                        
Retained earnings:                                                      
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]

[[Page 130]]



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.  -------------------------------------------------------------
                                                                                                                
----------------------------------------------------------------------------------------------------------------
                                      Maintenance of Roadway and Structures                                     
                                                                                                                
----------------------------------------------------------------------------------------------------------------
Superintendence...........................     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
                                                      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

[[Page 131]]

                                                                                                                
                                                      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
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  ............  ..........  ..........

[[Page 132]]

                                                                                                                
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
                                                                                                                
----------------------------------------------------------------------------------------------------------------
                                            Maintenance of Equipment                                            
                                                                                                                
----------------------------------------------------------------------------------------------------------------
Superintendence...........................     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
                                                      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  ..........  ............  ..........  ..........

[[Page 133]]

                                                                                                                
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
                                                                                                                
----------------------------------------------------------------------------------------------------------------
                                             Traffic Expense Account                                            
                                                                                                                
----------------------------------------------------------------------------------------------------------------
Superintendence...........................     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-x            
                                                                                                   x  ..........
Employees health and welfare benefits.....     359    12-61-00  ..........  ............  ..........  ..........
Other expenses............................     360    11-61-99    21-61-99  ............    41-61-99    61-61-99
                                                                                                                
----------------------------------------------------------------------------------------------------------------
                                         Transportation Expense Accounts                                        
                                                                                                                
----------------------------------------------------------------------------------------------------------------
Superintendence...........................     371    11-31-01    21-31-01  ............    41-31-01    61-31-01
                                                      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  ..........

[[Page 134]]

                                                                                                                
                                                      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  ............  ..........  ..........
                                                    ..........    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

[[Page 135]]

                                                                                                                
                                                      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
                                                                                                                
----------------------------------------------------------------------------------------------------------------
                                        Miscellaneous Operations Expense                                        
                                                                                                                
----------------------------------------------------------------------------------------------------------------
Dining 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  ..........  ............  ..........  ..........
                                                                                                                
----------------------------------------------------------------------------------------------------------------
                                           General Operating Expenses                                           
                                                                                                                
----------------------------------------------------------------------------------------------------------------
Salaries 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
                                                      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.                                              


[[Page 136]]


       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      
------------------------------------------------------------------------
                     Transportation Revenue Accounts                    
                                                                        
------------------------------------------------------------------------
Transportation; 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.                  
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      
------------------------------------------------------------------------
                             Income Accounts                            
                                                                        
------------------------------------------------------------------------
Railway 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.             

[[Page 137]]

                                                                        
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.  
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     
------------------------------------------------------------------------
                                 Credit                                 
                                                                        
------------------------------------------------------------------------
Credit 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.     
                                                                        
------------------------------------------------------------------------
                                  Debit                                 
                                                                        
------------------------------------------------------------------------
Debit balance (at beginning of     611     611  Debit balance (at       
 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.  

[[Page 138]]

                                                                        
                                         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.            
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.     
                                                                        
------------------------------------------------------------------------
                               Liabilities                              
                                                                        
------------------------------------------------------------------------
Loans 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.    

[[Page 139]]

                                                                        
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.    
                                                                        
------------------------------------------------------------------------
                          Shareholders' Equity                          
                                                                        
------------------------------------------------------------------------
Capital 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.
    ICC or Commission means the Interstate Commerce Commission.
    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 Interstate 
Commerce Commission.
    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-

[[Page 140]]

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 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 is 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 
Commission. 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]

[[Page 141]]

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 Commission 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.
    (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..........  ..........  ...............  .............  ............

[[Page 142]]

                                                                                                                
  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.......................  ..........  ...............  .............  ............
  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.................................  ..........  ...............  .............  ............

[[Page 143]]

                                                                                                                
  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   ............
  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.................................  ..........  ...............  .............  ............

[[Page 144]]

                                                                                                                
  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................................  ..........  ...............  .............  ............
  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.......................  ..........  ...............  .............  ............

[[Page 145]]

                                                                                                                
  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.....................  ..........
  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.............................................           $
                                                             -----------
------------------------------------------------------------------------


[[Page 146]]


                            (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...............................  ..........  ..........
  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...............  ..........  ..........  ..........

[[Page 147]]

                                                                        
  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 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.

[[Page 148]]

    (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 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.


[[Page 149]]


    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.

    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.


[[Page 150]]


    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 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

[[Page 151]]

                                                                        
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
                                                                        

    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

[[Page 152]]

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 Commission 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. 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.

[[Page 153]]



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, 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.

[[Page 154]]



                                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 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.

[[Page 155]]

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
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

[[Page 156]]

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 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

[[Page 157]]

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
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

[[Page 158]]

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
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
                                                                        


[[Page 159]]

    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:

                   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

[[Page 160]]

                                                                        
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 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

[[Page 161]]

                                                                        
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 or other goods carried in revenue service

[[Page 162]]

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
                                                                        


[[Page 163]]

    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 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

[[Page 164]]

                                                                        
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: 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

[[Page 165]]

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
                                                                        

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

    1Accounts 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--1205--[RESERVED]






PART 1206--COMMON AND CONTRACT MOTOR CARRIERS OF PASSENGERS--Table of Contents




Sec.

[[Page 166]]

1206.1  Uniform System of Accounts for common and contract motor carrier 
          of passengers not prescribed.
1206.2  Uniform System of Accounts for common and contract motor 
          carriers of passengers.

    Authority: 49 U.S.C. 10321, 11142 and 11145; 5 U.S.C. 553.

    Source: 32 FR 20280, Dec. 20, 1967, unless otherwise noted. Section 
1206.2 designated at 52 FR 20400, June 1, 1987.



Sec. 1206.1  Uniform System of Accounts for common and contract motor carrier of passengers not prescribed.

    The Uniform System of Accounts for motor carriers of passengers 
found at Sec. 1206.2, Uniform System of Accounts for common and contract 
motor carriers of passengers, shall no longer be prescribed for 
regulated motor carriers. The Uniform System of Accounts is herein left 
in place for reference purposes only as the basis of motor carrier 
accounting and reporting. Motor carriers may follow generally accepted 
accounting principles for all accounting and reporting matters. For 
reporting requirements, see Sec. 1249.3 and Sec. 1249.4 of Title 49, 
Code of Federal Regulations. This provision is effectively beginning 
January 1, 1987 and thereafter.

[52 FR 20400, June 1, 1987]



Sec. 1206.2  Uniform System of Accounts for common and contract motor carriers of passengers.

                               Definitions

1-1  Accounts.
1-2  Actually issued.
1-3  Actually outstanding.
1-4  Addition.
1-5  Amortization.
1-6  Associated companies and control.
1-7  Betterment.
1-8  Book cost.
1-9  Carrier or motor carrier.
1-10  Carrier operating property.
1-11  Company.
1-12  Commission or the Commission.
1-13  Contingent assets.
1-14  Contingent liabilities.
1-15  Cost.
1-16  Cost of removal.
1-17  Current assets.
1-18  Current liabilities.
1-19  Date of retirement.
1-20  Debt expense.
1-21  Delayed items.
1-22  Depreciation.
1-23  Discount.
1-24  Distinct operating unit.
1-25  Joint facility.
1-26  Long-term obligations.
1-27  Mileage method.
1-28  Minor items.
1-29  Net book cost.
1-30  Net salvage value.
1-31  Nominally issued.
1-32  Premium.
1-33  Property retired.
1-34  Replacing or replacement.
1-35  Salvage value.
1-36  Service life.
1-37  Service value.
1-38  Straight-line method.
1-39  Unit of property.
1-40  Used.
1-41  Terminology relative to accounting for income taxes.
1-42  Terminology relative to equity accounting.
1-43  Disposal of a segment of a business.
1-44  Terminology relative to compensating balances.
1-45  Terminology relative to accounting for marketable equity 
          securities.

                              Instructions

2-1  Classification of carriers.
2-2  Records.
2-3  Accounting period.
2-4  Submission of questions.
2-5  Item lists; interpretation.
2-6  Opening entries.
2-7  Extraordinary items, unusual or infrequent items, discontinued 
          operations, prior period items, and accounting changes.
2-8  Unaudited items.
2-9  Spreading of unusual income; revenue and expense items.
2-10  Current assets.
2-11  Discount or premium on securities of other companies.
2-12  Discount; expense and premium on capital stock.
2-13  Discount; expense and premium on long-term obligations.
2-14  Company securities owned.
2-15  Book cost of securities owned.
2-16  Clearing accounts; purpose.
2-17  Deduction of reserves.
2-18  Disclosure of contingent assets and liabilities and long-term 
          obligations.
2-19  Operating property to be recorded at cost.
2-20  Acquisition of a distinct operating unit.
2-21  Operating property retired.
2-22  Leased property; expenditures.
2-23  Transfer of property.
2-24  Common property.
2-25  Depreciation accounting.
2-26  Cost of repairs.
2-27  Insurance.

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2-28  Distribution of pay and expenses of employees.
2-29  Joint expenses.
2-30  Rent and lease of carrier property.
2-31  Amortization of intangibles.
2-32  Accounting for income taxes.
2-33  Transactions with affiliated companies.
2-34  Charges to be just and reasonable.
2-35  Accounting for leases.
2-36  Transfers from government authorities.
2-37  Business entertainment expenses.

                         Balance Sheet Accounts

                               asset side

                             Current Assets

1000  Cash.
1020  Working funds.
1040  Special deposits.
1041  Interest, special deposits.
1042  Dividend, special deposits.
1043  Miscellaneous special deposits.
1060  Temporary cash investments.
1080  Notes receivable.
1100  Receivables from associated companies.
1120  Accounts receivable.
1140  Subscribers to capital stock.
1160  Interest and dividends receivable.
1170  Prepayments.
1180  Material and supplies.
1190  Other current assets.
1195  Deferred income tax debits.

                            Tangible Property

1200  Carrier operating property.
1201  Land and land rights.
1211  Structures.
1221  Revenue equipment.
1231  Service cars and equipment.
1241  Shop and garage equipment.
1251  Furniture and office equipment.
1261  Miscellaneous equipment.
1271  Improvements to leasehold property.
1281  Undistributed property.
1291  Unfinished construction.
1300  Carrier operating property leased to others.
1400  Non-carrier operating property.
1450  Non-operating property.

                           Intangible Property

1500  Organization, franchises and permits
1501  Organization.
1511  Franchises.
1541  Patents.
1550  Other intangible property.

                   Investment Securities and Advances

1600  Investments and advances--Associated companies.
1650  Other investments and advances.
1675  Reserve for adjustment of investments in securities.
1676  Allowance for net unrealized loss on noncurrent marketable equity 
          securities.

                              Special Funds

1701  Sinking funds.
1751  Depreciation funds.
1781  Miscellaneous special funds.

                             Deferred Debits

1890  Other deferred debits.
1895  Accumulated deferred income tax debits.

                        Miscellaneous Debit Items

1900  Discount on capital stock.
1910  Commission and expense on capital stock.
1920  Reacquired securities.
1990  Nominally issued securities.

                             liability side

                           Current Liabilities

2000  Notes payable.
2020  Matured equipment and long-term obligations.
2030  Payables to associated companies.
2050  Accounts payable.
2070  Wages payable.
2080  Unredeemed tickets.
2090  C. o. d.'s unremitted.
2100  Dividends declared.
2120  Taxes accrued.
2150  Interest accrued.
2160  Matured interest.
2180  Other current liabilities.
2185  Deferred income tax credits.

                   Long-Term Debt Due Within One Year

2190  Equipment obligations and other debt due within one year.

                            Advances Payable

2200  Advances payable--Associated companies.
2250  Other advances payable.

                Equipment and Other Long-Term Obligations

2300  Equipment obligations.
2310  Capitalized lease obligations.
2330  Bonds.
2360  Other long-term obligations.
2370  Unamortized discount on debt.
2380  Unamortized premium on debt.

                            Deferred Credits

2410  Deferred revenues--transfers from government authorities.
2450  Other deferred credits.
2460  Accumulated deferred income tax credits.

                                Reserves

2500  Reserve for depreciation--Carrier operating property.

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2600  Reserve for amortization--Carrier operating property.
2610  Reserve for depreciation and amortization--Other property.
2650  Reserve for uncollectible accounts.
2680  Injuries, loss and damage reserves.
2690  Other reserves.

                              Capital Stock

2700  Preferred capital stock.
2710  Common capital stock.
2720  Premiums and assessments on capital stock.
2730  Capital stock subscribed.

                          Non-Corporate Capital

2800  Sole proprietorship capital.
2810  Partnership capital.

                         Unappropriated Surplus

2900  Unearned surplus.
2930  Earned surplus.
2931  Prior period adjustments to beginning retained surplus account.
2932  Credit balance transferred from income account.
2933  Other credits to surplus.
2942  Debit balance transferred from income account.
2943  Dividend appropriations.
2944  Appropriations to reserves.
2945  Other appropriations.
2946  Other debits to surplus.
2946.5  Net unrealized loss on noncurrent marketable equity securities.
2947  Treasury stock.
2999  Form of balance sheet statement.

                             Income Accounts

                            (ordinary items)

                           Operating Revenues

3000  Operating revenues (exclusive of transfers from government 
          authorities).
3200  Passenger revenue.
3210  Special bus revenue.
3220  Baggage revenue.
3300  Mail revenue.
3400  Express revenue.
3500  Newspaper revenue.
3600  Miscellaneous station revenue.
3700  Operating revenues--transfers from government authorities for 
          current operations.
3800  Operating revenues--amortization of deferred transfers from 
          government authorities.
3900  Other operating revenue.

                   Operation and Maintenance Expenses

4000  Operation and maintenance expenses.
4100  Equipment maintenance and garage expenses.
4110  Supervision of shop and garage.
4121  Repairs to shop and garage equipment.
4122  Operation and maintenance of service equipment.
4128  Repairs to shop and garage buildings and grounds.
4131  Light, heat, power, and water for shops and garages.
4132  Other shop and garage expenses.
4140  Repairs to revenue equipment.
4150  Servicing of revenue equipment.
4160  Tires and tubes--Revenue equipment
4191  Joint garage expenses--Debit.
4196  Joint garage expense--Credit.
4200  Transportation expense.
4210  Supervision of transportation.
4220  Drivers' wages and bonuses.
4230  Fuel for revenue equipment.
4240  Oil for revenue equipment.
4250  Purchased transportation.
4261  Road expense.
4262  Bridge, tunnel and ferry tolls.
4263  Wages of miscellaneous transportation employees.
4264  Other transportation expenses.
4300  Station expense.
4311  Salaries and commissions.
4314  Supplies and expenses.
4319  Repairs to station buildings and equipment.
4331  Commissions paid.
4332  Other expenses allowed.
4340  Interline commission paid.
4350  Interline commissions earned--Credit.
4360  Collection and delivery.
4370  Purchased collection and delivery.
4391  Joint station facilities--Debit.
4396  Joint station facilities--Credit.
4400  Traffic, solicitation and advertising expense.
4410  Salaries and expenses.
4430  Tariffs and schedules.
4440  Tickets and baggage checks.
4450  Other traffic expenses.
4470  Advertising.
4500  Insurance and safety expense.
4510  Salaries and expenses--Insurance and safety.
4520  Public liability and property damage insurance.
4530  Injuries and damages.
4541  Workmen's compensation--Insurance.
4546  Workmen's compensation--Provision for claims.
4550  Baggage and express insurance.
4560  Baggage and express loss and damage.
4570  Fire and theft insurance.
4580  Other insurance.
4600  Administrative and general expense.
4611  Salaries of general officers.
4612  Expenses of general officers.
4613  Salaries of general office employees.
4616  Expenses of general office employees.
4620  Law expenses.
4630  General office supplies and expenses.
4640  Communication service.
4651  Outside auditing expenses.
4652  Employees' welfare expenses.
4655  Purchasing and store expenses.

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4656  Other general expenses.
4660  Management and supervision fees and expenses.
4671  Franchise requirements--Debit.
4672  Franchise requirements--Credit.
4673  Other regulatory commission expenses.
4680  Uncollectible revenues.
4691  Joint operating expense--Debit.
4696  Joint operating expense--Credit.

                          Depreciation Expense

5000  Depreciation expense.

                          Amortization Expense

5100  Amortization of carrier operating property.

                           Taxes and licenses

5200  Operating taxes and licenses.
5210  Gasoline, other fuel and oil taxes.
5220  Vehicle license and registration fees.
5230  Real estate and personal property taxes.
5240  Social security taxes.
5250  Other taxes.

                             Operating Rents

5300  Operating rents--Net.
5310  Equipment rents--Debit.
5320  Other operating rents--Debit.
5340  Joint facility rents--Debit.
5350  Equipment rents--Credit.
5360  Rent from owned land and structures.
5370  Sublease rental income.
5390  Joint facility rents--Credit.

                        Lease of Carrier Property

5400  Rent for lease of carrier property--Debit.
5500  Income from lease of carrier property--Credit.

                              Other Income

6000  Net income from non-carrier operations.
6100  Net income from non-operating property.
6200  Interest income.
6300  Dividend income.
6400  Income from sinking and other funds.
6500  Other non-operating income.
6600  Unusual or infrequent items (credit).

                            Income Deductions

7000  Interest on long-term obligations.
7100  Other interest deductions.
7200  Taxes assumed on interest.
7300  Amortization of debt discount and expense.
7400  Amortization of premium on debt--Credit.
7500  Other deductions.
7600  Unusual or infrequent items (debit).

                              Income Taxes

8000  Income taxes on income from continuing operations.
8040  Provision for deferred taxes.

                         discontinued operations

8100  Income (loss) from operations of discontinued segments.
8120  Gains (loss) on disposal of discontinued segments.

               extraordinary items and accounting changes

9010  Extraordinary items (net).
9050  Income taxes on extraordinary items.
9060  Provision for deferred taxes--extraordinary items.
9070  Cumulative effect of changes in accounting principles.
9999  Form of income statement.

                               Definitions

1-1  Accounts.
    Accounts as used in this part means the accounts prescribed in this 
system of accounts.
1-2  Actually issued.
    Actually issued, as applied to securities, means those which have 
been sold to bona fide purchasers for a valuable consideration 
(including those issued in exchange for other securities or other 
property) so that the purchasers secured them free from control by the 
issuing carrier, also securities issued as dividends on stock, and those 
which have been issued in accordance with contractual requirements 
direct to trustees of sinking and other funds.
1-3  Actually outstanding.
    Actually outstanding, as applied to securities issued or assumed by 
the carrier, means those which have been actually issued and are neither 
retired nor held by or for the carrier: Provided, however, That 
securities held by trustees shall be considered as actually outstanding.
1-4  Addition.
    Addition means structures, facilities, or equipment added to those 
in service and not taking the place of anything previously existing.

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1-5  Amortization.
    Amortization means the gradual extinguishment of an amount in an 
account by prorating such amount over either a fixed period dependent on 
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.
1-6  Associated companies and control.
    (a) Associated companies or 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) as used in this part, means the possession, 
directly or indirectly, of the power to direct or cause the direction of 
the management and policies of a person, firm or corporation, whether 
through the ownership of voting securities, by contract or otherwise. If 
in any instance the existence of control is or may be open to reasonable 
doubt, the carrier shall report to the Commission all of the material 
facts pertinent to the possible existence of control.
1-7  Betterment.
    Betterment means the enlargement or improvement of existing 
structures, facilities, and equipment.
1-8  Book cost.
    Book cost means the amount at which property is recorded on the 
books of the carrier without deduction of related reserves.
1-9  Carrier or motor carrier.
    Carrier or motor carrier includes both a common carrier by motor 
vehicle and a contract carrier by motor vehicle, subject to Part II of 
the Interstate Commerce Act.
1-10  Carrier operating property.
    Carrier operating property means the property which is used (see 
definition 40) by the carrier in the conduct of its motor carrier 
operations or leased to others for such operations, and which has an 
expectation of life in service of more than 1 year from date of 
installation. This includes land, structures, equipment, and facilities 
necessary for such operations and services incidental thereto.
1-11  Company.
    Company means any individual, firm, copartnership, corporation, 
association, or joint-stock association; and includes any trustee, 
receiver, assignee, or personal representative thereof.
1-12  Commission or the Commission.
    Commission or the Commission means the Interstate Commerce 
Commission.
1-13  Contingent assets.
    Contingent assets means a possible source of value to the carrier 
dependent upon the fulfillment of conditions regarded as uncertain.
1-14  Contingent liabilities.
    Contingent liabilities means items which may under certain 
conditions become obligations of the carrier but which are neither 
direct nor assumed liabilities at the date of the balance sheet.
1-15  Cost.
    Cost means the amount of money actually paid for property or 
services, or the cash value at the time of the transaction of any 
consideration other than money.
1-16  Cost of removal.
    Cost of removal means the cost of demolishing, dismantling, tearing 
down, or otherwise removing operating property, including the cost of 
transportation and handling incident thereto.
1-17  Current assets.
    Current assets means cash as well as those assets that are readily 
convertible into cash or are held for current use in operations or 
construction; current claims against others, payment of which is 
reasonably assured; and other amounts accruing to the carrier which are 
subject to settlement within one year from the date of the balance 
sheet.

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1-18  Current liabilities.
    Current liabilities means those obligations the amount of which is 
definitely determined or closely estimated which are either matured at 
the date of the balance sheet or become due within 1 year from date of 
issuance or assumption or upon demand.
1-19  Date of retirement.
    Date of retirement, as applied to operating property, means the date 
at which such property is permanently withdrawn from service.
1-20  Debt expense.
    Debt expense means all expense in connection with the issuance and 
sale of evidences of long-term debt, such as fees for drafting mortgages 
and trust deeds; fees and taxes for issuing or recording evidences of 
debt; cost of engraving and printing bonds, certificates of 
indebtedness, and other evidences of debt; fees paid trustees; specific 
costs of obtaining governmental authority; fees for legal services; fees 
and commissions paid underwriters, brokers, and salesman for marketing 
evidences of debt; fees and expenses of listing on exchanges; and other 
like costs.
1-21  Delayed items.
    Delayed items means items relating to transactions which occurred 
before the current calendar year. It includes adjustments of errors in 
the income, operating revenue, and operating expense accounts of prior 
years.
1-22  Depreciation.
    Depreciation, as applied to depreciable operating property, means 
the loss in service value (see definition 37) not restored by current 
maintenance, incurred in connection with the consumption or prospective 
retirement of property in the course of service from causes against 
which the carrier is not protected by insurance, which are known to be 
in current operation. Among the causes to be given consideration are 
wear and tear, decay, action of the elements, obsolescence, changes in 
the art, inadequacy, changes in demand, and requirements of public 
authority.

    Note A: Unit plan means the plan under which depreciation charges 
are computed and the records maintained so that the total amount of 
depreciation accrued applicable to each unit can be determined.
    Note B: Group plan means the plan under which depreciation charges 
are accrued upon the basis of the sum total of the book cost balances at 
the close of each month (or 4-week period) of all property included in 
each account or subdivision thereof, at rates determined from the 
average service life of the property included therein, and upon the 
retirement of any such property its full service value is charged to the 
depreciation reserve whether or not the particular item has attained the 
average service life.
1-23  Discount.
    Discount, as applied to securities 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 the sale.
1-24  Distinct operating unit.
    Distinct operating unit means all or any portion of a route or 
routes covered by a certificate of convenience and necessity or a permit 
and operated as a separate entity, including the physical property used 
in the operation thereof.
1-25  Joint facility.
    Joint facility means any property occupied or used jointly by the 
carrier and one or more other carriers under a definite arrangement 
whereby the costs are shared between 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.
1-26  Long-term obligations.
    Long-term obligations means obligations having a life of more than 1 
year from date of creation or assumption, and all unmatured bonds and 
receivers' or trustees' certificates.
1-27  Mileage method.
    Mileage method, as applied to depreciation of vehicles, means the 
plan under which the service value is charged to depreciation expenses 
and credited to depreciation reserves at a fixed rate per mile run.

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1-28  Minor items.
    Minor items, as applied to carrier operating property (see 
definition 10), means the associated parts or elements of which units of 
propety (see definition 39) are composed. (See instruction 21(c).)
1-29  Net book cost.
    Net book cost, when applied to property, means the book cost (see 
definition 8) less related depreciation and amortization reserves.
1-30  Net salvage value.
    Net salvage value means the salvage value (see definition 35) of 
property retired after deducting the cost of removal.
1-31  Nominally issued.
    Nominally issued, as applied to securities issued or assumed by the 
carrier, means those which have been signed, certified, or otherwise 
executed and placed with the proper officer for sale and delivery, or 
pledged, or otherwise placed in some special fund of the carrier, but 
which have not been sold or issued direct to trustees of sinking funds 
in accordance with contractual requirements.
1-32  Premium.
    Premium, as applied to securities 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 nopar stocks) or 
face value of the securities plus interest or dividends accrued at the 
date of sale.
1-33  Property retired.
    Property retired, as applied to operating property, means property 
which has been removed, sold, abandoned, destroyed, or which for any 
cause has been permanently withdrawn from service.
1-34  Replacing or replacement.
    Replacing or replacement, when not otherwise indicated in the 
context, means the acquisition, construction, or installation of 
property in place of property of like purpose retired, together with the 
removal of the property retired.
1-35  Salvage value.
    Salvage value means the amount received for property retired, less 
any expenses incurred in connection with the sale or in preparing the 
property for sale; or, if retained, the amount at which the material 
recovered is chargeable to account 1180, Material and Supplies, or other 
appropriate account.
1-36  Service life.
    Service life means the period between the date when carrier 
operating property (see definition 10) is placed in service and the date 
of its retirement. (See definition 33.)
1-37  Service value.
    Service value means the difference between the book cost (see 
definition 8) and the net salvage value (see definition 30) of carrier 
operating property.
1-38  Straight-line method.
    Straight-line method, as applied to depreciation accounting, means 
the plan under which the service value (see definition 37) of property 
is charged to depreciation expenses or other appropriate accounts and 
credited to the depreciation reserves through equal periodic charges as 
nearly as may be during its service life.
1-39  Unit of property.
    Unit of property, for the purpose of this system of accounts, means 
any item of property which on sale, abandonment, disposal or replacement 
is written out of the property accounts as provided for in instruction 
21.
1-40  Used.
    Used, as applied to operating property, means actually and 
necessarily in current service or ready for and reasonably required to 
be currently held for future service.
1-41  Terminology relative to accounting for income taxes.
    (a) Income taxes means taxes based on income determined under 
provisions of the United States Internal Revenue

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Code and foreign, state and other taxes (including franchise taxes) 
based on income.
    (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 revenues 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 expense 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.

[39 FR 33348, Sept. 17, 1974]
1-42  Terminology relative to equity accounting.
    (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 by a 
small group of businesses as a separate and specific business or project 
for the mutual benefit of the members of the group.
    (d) Dividends, unless otherwise specified, means dividends paid or 
payable 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.
1-43  Disposal of a segment of a business.
    (a) 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

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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 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.
    (b) 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.
    (c) 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.
1-44  Terminology relative to compensating balances.
    (a) 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 (or any person) 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.)
    (b) 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.

[39 FR 34046, Sept. 23, 1974, as amended at 40 FR 53252, Nov. 17, 1975; 
41 FR 9159, Mar. 3, 1976]
1-45  Terminology relative to accounting for marketable equity 
securities.
    (a) 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.
    (b) 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.
    (c) Market value refers to the aggregate of the market price of a 
single

[[Page 175]]

share or unit times the number of shares or units of each marketable 
equity security in the portfolio. When an entity 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, these contracts shall be taken into consideration in the 
determination of market value of the marketable equity securities.
    (d) 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.

[42 FR 33300, June 30, 1977]

                              Instructions

2-1  Classification of carriers.

    (a) For the purpose of accounting and reporting regulations, common 
and contract carriers of passengers subject to the Interstate Commerce 
Act are grouped into the following two classes:
    Class I--Carriers having average annual gross transportation 
operating revenues (including interstate and intrastate) of $5 million 
or more from passenger motor carrier operations after applying the 
revenue deflator formula as shown in the Note.
    Class II--Carriers having average annual gross transportation 
operating revenues (including interstate or intrastate) of less than $5 
million from passenger motor carrier operations after applying the 
revenue deflator formula as shown in the Note.
    (b)(1) The class to which any carrier belongs shall be determined by 
annual carrier operating revenues after applying the revenue deflator 
formula as shown in the Note. Upward and downward reclassification will 
be effected as of January 1 of the year immediately following the third 
consecutive year of revenue qualification.
    (2) Any carrier which begins new operations (obtains operating 
authority not previously held) or extends its existing authority 
(obtains additional operating rights) shall be classified in accordance 
with a reasonable estimate of its annual carrier operating revenues 
after applying the revenue deflator formula shown in the Note.
    (3) When a business combination occurs, such as a merger, 
reorganization, or consolidation, the surviving carrier shall be 
reclassified effective as of January 1 of the next calendar year on the 
basis of the combined revenues for the year when the combination 
occurred after applying the revenue deflator formula shown in the Note.
    (4) Carriers shall notify the Commission of any change in 
classification or when their annual operating revenues exceed the Class 
I limit by writing to the Bureau of Accounts, Interstate Commerce 
Commission, Washington, DC 20423. In unusual circumstances where the 
classification regulations and reporting requirements will unduly burden 
the carrier, the carrier may request from the Commission a waiver from 
these regulations. This request shall be in writing specifying the 
conditions justifying the waiver. The Commission then shall notify 
carriers of any change in classification or reporting requirements.
    (c) For classification purposes, the Commission shall publish in the 
Federal Register annually an index number which shall be used for 
adjusting gross annual operating revenues. The index number (deflator) 
is based on the Producer Price Index of Finished Goods and is used to 
eliminate the effects of inflation from the classification process.

    Note: Each carrier's operating revenues will be deflated annually 
using the Producers Price Index (PPI) of Finished Goods before comparing 
them with the dollar revenue limits prescribed in paragraph (a) of this 
section. The PPI is published monthly by the Bureau of Labor Statistics. 
The formula to be applied is as follows:

[[Page 176]]

[GRAPHIC] [TIFF OMITTED] TC03MR91.049

[53 FR 4028, Feb. 11, 1988]
2-2  Records.
    (a) All the accounts defined in this system of accounts must be kept 
by the double entry method. Each carrier shall keep its general 
accounting books and all other books, records and memoranda which 
support in any way the entries to such accounting books and analyses of 
general ledger account balances so that it can furnish at any time full 
information as to any account. Moreover, it shall support each entry to 
each account with such detailed information as will provide a ready 
analysis and verification of the facts recorded therein. All 
expenditures must be definitely supported by vouchers, payrolls, 
receipted bills, canceled checks, receipts for petty cash payments, or 
other evidences of the expenditures incurred.
    (b) The books referred to in this part include not only books of 
account 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.
    (c) 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.
    (d) Subdivisions of any account in this system of accounts may be 
kept, provided that such subdivisions do not impair the integrity of the 
accounts prescribed. The Commission reserves the right to order any 
carrier to subdivide any account in this system of accounts. The title 
of each such subdivision shall clearly indicate the account of which it 
is a part. When an account is subdivided in the general ledger, an 
account need not be maintained for the total of the subdivisions. When 
such subdivisions are carried in subsidiary ledgers, however, the 
general ledger shall contain the controlling accounts therefor so that a 
complete general ledger trial balance may be obtained.

[32 FR 20280, Dec. 20, 1967, as amended at 40 FR 50384, Oct. 29, 1975]
2-3  Accounting period.
    (a) Each carrier shall keep its books on the basis of either (1) an 
accounting year of 12 months ending on the 31st day of December in each 
year, or (2) an accounting year of thirteen 4-week periods ending at the 
close of one of the last 7 days of each calendar year.
    (b) A carrier electing to adopt an accounting year of thirteen 4-
week periods shall file with the Commission a statement showing the day 
on which its accounting year will close. A subsequent change in the 
accounting period may not be made except by authority of the Commission.
    (c) To avoid repetition, wherever calendar year appears in the 
system of accounts it is intended to include or an accounting year of 
thirteen 4-week periods and wherever month appears it is intended to 
include or 4-week period.
    (d) For each month all transactions applicable thereto, as nearly as 
can be ascertained (see instruction 2-8), including full accruals, shall 
be entered in the books of original entry (cash book, purchase journal, 
etc.), and posted to the general ledger. 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, EDP or ADP print-out 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 earned surplus or the noncorporate 
capital accounts; and balance sheet account balances shall be brought 
forward to the general ledger for the succeeding year.

[[Page 177]]

    (e) The final entries for any month shall be made in the general 
ledger not later than 60 days after the last day of the month for which 
the accounts are stated, unless otherwise authorized by the Commission, 
except that the period within which the final entries for the last month 
of the calendar year shall be made may be extended to such date in March 
of the following year as shall not interfere with the preparation and 
filing of annual reports.
    (f) No changes shall be made in the accounts for periods covered by 
quarterly and annual reports that have been filed with the Commission 
unless the changes have first been authorized by the Commission.

[38 FR 3602, Feb. 8, 1973]
2-4  Submission of questions.
    To maintain uniformity of accounting, carriers shall submit all 
questions of doubtful interpretation to the Commission for consideration 
and decision.
2-5  Item lists; interpretation.
    Lists of items appearing in the texts of the several accounts are 
given for the purpose of indicating the application of the prescribed 
accounting in specific cases. The lists are not to be considered as 
comprising all items includible in the several accounts, but merely as 
representative of them. On the other hand, the appearance of an item in 
a list warrants the inclusion of such item in the account concerned only 
when the text of the account also indicates inclusion, inasmuch as the 
same item frequently appears in more than one list. The proper entry in 
each instance must be determined by the texts of the accounts.
2-6  Opening entries.
    As of the effective date of this system of accounts the accounts 
prescribed herein shall be opened by appropriately transferring thereto 
the balances carried in the accounts previously maintained by the 
carrier. The carrier is authorized to make such subdivisions, 
reclassifications, consolidations of or additions to such balances as 
are necessary to meet the requirements of this system of accounts.
2-7  Extraordinary items, unusual or infrequent items, discontinued 
operations, prior period items, and accounting changes.
    (a) Extraordinary items. All items of profit and loss recognized 
during the year are includible 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.
    (b) 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 includible in the accounts 
provided as separate components of income/expense from continuing 
operations. Such items are not to be reported net of income taxes.
    (c) 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 1-43(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

[[Page 178]]

definition 1-43(b)). If a gain is expected, it shall be recognized when 
realized, which ordinarily is the disposal date (see definition 1-
43(c)).
    (d) 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 Commission.

    (e) Accounting changes. A change in accounting principle or 
accounting entity should be referred to this Commission for approval. 
The cumulative effect of a change in accounting principle should 
ordinarily be reflected in the account provided for in determining net 
income; in certain cases accounting changes may be reflected as prior 
period adjustments. Changes in accounting estimates should ordinarily be 
reflected prospectively.
    (f) 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.
    (g) Commission 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 Commission. 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 instruction 2-7.

[40 FR 53252, Nov. 17, 1975, as amended at 43 FR 37456, Aug. 23, 1978]
2-8  Unaudited items.
    (a) When the amount of any item affecting these accounts can not be 
accurately determined in time for inclusion in the accounts of the 
calendar year in which the transaction occurs, the amount of the item 
shall be estimated and included in the proper accounts. When the item is 
audited the necessary adjustments shall be made through the accounts in 
which the estimate was recorded. If, during the interval between the 
date of inclusion of the item in the accounts and the date on which it 
is audited, a substantial difference from the initial estimate is 
determined, appropriate adjustments shall be made in the current 
accounts to cover such difference. The carrier is not required to 
anticipate small items which would not appreciably affect these 
accounts.
    (b) If, owing to exceptional conditions, a carrier finds a 
modification of the instructions in paragraph (a) of this section 
necessary, it shall furnish a statement of its proposed plans to the 
Commission for approval before adoption.
2-9  Spreading of unusual income; revenue and expense items.
    When the amount of any unusual item includible in an income, 
operating revenue, or operating expense account for a single period is 
relatively so large that its inclusion in the accounts for that period 
would seriously distort those accounts it may be included in account 
1890, Other Deferred Debits, or account 2450, Other Deferred Credits, as 
appropriate, and distributed in equal amounts to the accounts for the 
current and remaining periods of the year.

[[Page 179]]

No such item shall be spread beyond the accounts of the current year 
without authority of the Commission.
2-10  Current assets.
    (a) In the group of accounts designated as Current Assets (accounts 
1000 to 1190, inclusive) there shall not be included any item the amount 
or collectibility of which is not reasonably assured or for which 
provision has not been made in a reserve. Items of current character but 
of doubtful value may be carried in these accounts at a nominal value or 
included in account 1890, Other Deferred Debits, at book cost or nominal 
value, or written off, as may be appropriate.
    (b) Adjustments to accomplish the writing down of items of doubtful 
value not covered by reserves shall be made through account 4680, 
Uncollectible Revenues, account 7500, Other Deductions, or other 
appropriate ordinary income account.
2-11  Discount or premium on securities of other companies.
    (See instruction 15.)
2-12  Discount; expense and premium on capital stock.
    (a) This system of accounts provides accounts for discounts, 
commissions and expenses on capital stock and another account for 
premium on capital stock. These accounts shall be subdivided for each 
class and series of capital stock issued by the carrier. Commission and 
expenses applicable to capital stock issues shall be included in the 
commission and expense account and shall not be deducted from premium on 
capital stock.
    (b) In stating the balance sheet, discount on capital stock shall 
not be netted against premiums.
    (c) General levies or assessments against stockholders shall be 
credited to the premium account for the particular class and series of 
capital stock so assessed, except that assessments with respect to 
nonpar stock without stated value shall be credited to the capital stock 
account.
    (d) Discounts and expenses on capital stock may be amortized by 
charges to account 2900, Unearned Surplus. However, in no event shall 
net debits exceed the accumulated net credits in unearned surplus. Any 
excess of debits may be retained in account 1900, Discount on Capital 
Stock, or account 1910, Commission and Expense on Capital Stock, as 
appropriate, until the stock is reacquired or retired, or the excess 
debits may be charged to account 2946, Other Debits to Surplus.
    (e) Discount and expenses on capital stock reacquired or retired 
shall be accounted for in accordance with instruction 14.
2-13  Discount; expense and premium on long-term obligations.
    (a) A separate subdivision shall be maintained in account 23700, 
Unamortized Discount on Debt, for the excess of discount over any 
premium related to each class of long-term debt issued or assumed by the 
carrier. Debt expense shall be included in account 1890, Other Deferred 
Debits. (See definitions 20, 23, 32.)
    (b) Corresponding subdivisions shall be maintained in account 2380, 
Unamortized Premium on Debt, for the excess of the premium over any 
discount related to each class of long-term debt issued or assumed by 
the carrier.
    (c) Each period there shall be credited to each subdivision of 
account 2370, Unamortized Discount on Debt, the amount applicable to 
such period under a plan of amortization, the application of which will 
equitably distribute the balance therein over the life of the security. 
Amounts thus credited shall be concurrently charged to account 7300, 
Amortization of Debt Discount and Expense.
    (d) Correspondingly, each period there shall be charged to each 
subdivision of account 2380, Unamortized Premium on Debt, the portion of 
such credit balance which is applicable to that period. Amounts thus 
charged shall be concurrently credited to account 7400, Amortization of 
Premium on Debt.--Credit.
    (e) Except as provided in paragraphs (c) and (d) of this section, 
the balances in each of these accounts or subdivisions thereof shall be 
carried until the reacquisition of the securities to which it relates. 
At that time (unless otherwise ordered by the Commission in the

[[Page 180]]

case of an exchange of securities) the portion of the balances in these 
accounts, or subdivision for the particular class of long-term debt 
reacquired, shall be transferred to account 6500, Other Nonoperating 
Income, or account 7500, Other Deductions, as appropriate. Such portion 
shall be based on the relation of the amount of the particular issue of 
long-term debt reacquired to the total outstanding before the 
reacquisition. This provision shall also apply to securities held alive 
in sinking or other funds under instruction 14.
    (f) Except for such discount or expense as may be applicable to the 
construction period, no discount or expense on long-term debt shall be 
included in any account as a part of the cost of acquiring any property 
or as a part of the cost of operation.

[32 FR 20280, Dec. 20, 1967, as amended at 41 FR 52468, Nov. 30, 1976]
2-14  Company securities owned.
    (a) Capital stock. (1) When an issue of capital stock or any part 
thereof is reacquired, either by purchase or donation, and is retired or 
cancelled, the par value shall be charged to account 2700, Preferred 
Capital Stock, or account 2710, Common Capital Stock. Any excess of 
reacquisition cost over par value shall be allocated between account 
2900, Unearned Surplus and account 2946, Other Debits to Surplus. Any 
excess of par value over reacquisition cost shall be credited to account 
2900, Unearned Surplus.
    (2) When an issue of capital stock or any part thereof is 
reacquired, either by purchase or donation, and is not retired or 
cancelled, nor properly includible in sinking or other funds, the 
reacquisition cost shall be charged to account 2947, Treasury Stock.
    (3) When treasury stock is resold, account 2947, Treasury Stock, 
shall be credited with the cost paid for it. Gains shall be credited to 
account 2900, Unearned Surplus. Losses shall be charged to account 2900, 
Unearned Surplus to the extent that previous net gains from sales or 
retirements of the same class of stock are included therein; otherwise, 
to account 2946, Other Debits to Surplus.
    (b) Equipment and long-term obligations. (1) Equipment and other 
long-term obligations reacquired by the carrier shall be entered in 
account 1920, Reacquired Securities, at face value. The difference 
between the face value and the amounts actually paid for the reacquired 
obligations shall be included in account 6500, Other Nonoperating 
Income, or account 7500, Other Deductions, as appropriate. (See 
instruction 7). Likewise, any unamortized debt discount, expense or 
premium, applicable to the reacquired obligations, shall be adjusted 
through account 6500 or account 7500, as appropriate.
    (2) When reacquired equipment and other long-term obligations are 
resold by the carrier, the amount included in account 1920, Reacquired 
Securities, shall be credited thereto and any difference between the 
total amount realized from the sale (less related commissions and 
expenses) and the credit to account 1920 shall be included in account 
6500 or account 7500, as appropriate, unless otherwise ordered by the 
Commission.

[32 FR 20280, Dec. 20, 1967, as amended at 40 FR 44564, Sept. 29, 1975]
2-15  Book cost of securities owned.
    (a) Securities of others acquired by the carrier shall be recorded 
in these accounts at cost at the time of acquisition. Cost does not 
include any amount paid for accrued interest or dividends.
    (b) (1) Accounts 1060 ``Temporary cash investments'', 1600 
``Investments and advances--Associated Companies'', and 1650 ``Other 
investments and advances'' shall be maintained in such a manner as to 
reflect the marketable equity securities' portion (see definition 1-45) 
and other securities or investments.
    (2) For the purpose of determining net ledger value, the marketable 
equity securities in account 1060 shall be considered the current 
portfolio and the marketable equity securities in accounts 1600 and 1650 
(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 1-45). The amount by which aggregate cost

[[Page 181]]

exceeds market value shall be accounted for as the valuation allowance. 
Account 1060 ``Temporary cash investments'' shall be subdivided to 
include the valuation allowance for the marketable equity securities 
included therein. Account 1676 ``Allowance for net unrealized loss on 
noncurrent marketable equity securities'' is the valuation allowance for 
the marketable equity securities included in accounts 1600 ``Investments 
and advances--Associated companies'' and 1650 ``Other investments and 
advances''. 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.
    (3) Realized gains and losses (the difference between net proceeds 
from sale and cost) shall be included in income of the period in which 
they occur. Changes in the valuation allowance for marketable equity 
securities included in account 1060 shall be charged to account 7500 
``Other deductions'' or credited to account 6500 ``Other nonoperating 
income'' as appropriate, with a contra entry to the valuation allowance 
contained within account 1060. Changes in the valuation allowance for 
marketable equity securities included in account 1600 and 1650 shall be 
recorded in equity account 2946.5 ``Net unrealized loss on noncurrent 
marketable equity securities'' with a contra entry to valuation account 
1676.
    (4) 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.
    (5) 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 written 
down to a new cost basis. The amount of the write-down shall be 
accounted for as a realized loss by a charge to account 7500 ``Other 
deductions'' and a credit to account 1675 ``Reserve for adjustment of 
investment in securities''. The new cost basis shall not be changed for 
subsequent recoveries in value.
    (c) When securities with a fixed maturity date are purchased at a 
discount (that is when the total cost including brokerage fees, taxes, 
commissions, etc., is less than par), such discount 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 the interest revenue is credited. No debits shall be made in 
respect to discount 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 the date of maturity.
    (d) When securities with a fixed maturity date are purchased at a 
premium (that is when the total cost including brokerage fees, taxes, 
commissions, etc., is in excess of par), such premiums 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 account 
in which the interest revenue is recorded.
    (e) Profits and losses resulting from the sale of securities of 
others shall be included in accounts 6500, Other Nonoperating Income, or 
7500, Other Deductions, as appropriate.
    (f)(1) For financial statement purposes the carrier shall follow the 
principles of equity accounting for (1) all investments in corporate 
joint ventures (see definition 1-42(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 1-42(b)). For purposes of this instruction an 
investment of 20 percent or more of the outstanding voting stock of an 
investee

[[Page 182]]

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 
Commission, 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 1-42(g)); (2) accumulated amortization of the difference 
between cost and net assets at date of acquisition (see (f)(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 income memorandum account 
discussed in paragraph (f)(2)(iii) of this instruction.
    (iii) A retained income 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 (f)(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 items reported in the investee's financial statements (see 
instruction 2-7), and provision for deferred taxes where 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 income memorandum 
account discussed in paragraph (f)(2) (iii) of this instruction.
    (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.

[[Page 183]]

    (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 (f)(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 (f)(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 amortization), 
and retained income (for prior years' equity in undistributed earnings 
less amortization) shall be adjusted retroactively on a step-by-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 purchase is made which qualifies the investment for 
the equity method, the date of latest purchase may be used as date of 
acquisition. In those situations where the information needed to apply 
the equity method is not determinable, the date of acquisition may be 
considered as January 1, 1974.
    (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 Commission in accordance 
with generally accepted accounting principles.

    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 
Commission.

[32 FR 20280, Dec. 20, 1967, as amended at 39 FR 34046, Sept. 23, 1974; 
40 FR 53252, Nov. 17, 1975; 42 FR 33300, June 30, 1977]
2-16  Clearing accounts; purpose.
    (a) Clearing accounts, designed to facilitate the distribution of 
certain expenditures which may affect both construction and operations 
or which may affect transportation and other operations, may be kept 
when necessary in making the proper distribution of items to the 
appropriate accounts.
    (b) Balances in clearing accounts shall be fully cleared not later 
than the end of the calendar year unless items held therein 
unquestionably relate to future periods. Items carried over shall be 
included in account 1890, Other Deferred Debits, or account 2450, Other 
Deferred Credits.
2-17  Deduction of reserves.
    In stating the balance sheet, reserves shall be shown separately and 
shall be deducted from the specific assets to which they apply. Reserves 
not applicable to specific assets shall be shown on the liability side.
2-18  Disclosure of contingent assets and liabilities and long-term 
obligations.
    (a) Contingency gains and losses shall be disclosed by footnotes to 
the balance sheet. This includes any arrears in cumulative dividends 
showing the amount per share of each class of

[[Page 184]]

stock and the facts and amounts related to any default in principal, 
interest or sinking fund provisions if not shown in the balance sheet 
accounts.
    (b) 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]
2-19  Operating property to be recorded at cost.
    (a) Amounts chargeable to the accounts 1200 and 1300, designated as 
carrier operating property accounts, shall be the actual cost to the 
carrier of the items properly includible therein also including the 
excess cost of improvements over the estimated cost at current prices of 
property removed and replaced, and shall be exclusive of any cost for 
intangible items includible in any of the subdivisions of account 1500, 
Organization, Franchises and Permits, or account 1550, Other Intangible 
Property. (See, however, instruction 20.)
    (b) The book cost of the construction or acquisition of property 
chargeable to the carrier operating property accounts 1200 and 1300 
shall include the cost of direct labor, indirect labor, materials, 
transportation, contract work, rent of construction facilities, taxes 
and interest during construction; also such portion of engineering, 
supervision, law expenditures, injuries and damages, compensation and 
other insurance, as is applicable to the construction period; and other 
analogous elements applicable to the construction and acquisition of 
property. Unless provided for otherwise, interest costs shall be 
capitalized in accordance with generally accepted accounting principles.
    (c) Any unit of property, including additions to or betterments of 
existing property, having a cost not in excess of $500.00, or having a 
life of one year or less, may be charged to the appropriate operation 
and maintenance expense or clearing account and not to the property 
account. However, if small tools, portable equipment and similar items 
are consumed directly in construction work, the cost may be included as 
part of the cost of the constructed unit. This is not to be construed as 
authorizing the parceling of expenditures to bring them within this 
limit, or the inconsistent application of any rule or practice adopted 
by the carrier regarding the same item or class of property. Changes in 
method of applying this rule, shall be reported to the Commission.
    (d) When operating property is purchased under any plan involving 
deferred payments, no charges shall be made to operating property 
accounts for interest, insurance, or other expenditures occasioned by 
such form of payment.
    (e) When the consideration given for property is anything other than 
cash, the cash value of such consideration shall be used, except that 
where physical property is received in exchange for physical property, 
such property shall be recorded at the net book cost of the property 
given in exchange. In the journal entry recording such a transaction the 
actual consideration shall be described with sufficient particularity to 
identify it. The carrier shall be prepared to furnish to the Commission 
the particulars of its determination of the cash value of the 
consideration if other than cash.

[32 FR 20280, Dec. 20, 1967, as amended at 46 FR 10920, Feb. 5, 1981; 46 
FR 45959, Sept. 16, 1981]
2-20  Acquisition of a distinct operating unit.
    (a) When a motor carrier system or portion thereof constituting a 
distinct operating unit (see definition 24) is acquired by purchase or 
merger or consolidation in a pooling of equity interests of stockholders 
the accounting therefor shall be as follows:
    (1) Purchase. (i) When purchase is made from a non-affiliated 
company the assets acquired, other than carrier operating property, non-
carrier operating property and other non-operating property includible 
in accounts 1200, 1300, 1400 and 1450, and the liabilities assumed shall 
be recorded in the appropriate accounts at the amounts carried

[[Page 185]]

on the books of the transferor at date of consummation of the 
transaction. Such amounts shall be adjusted, as may be necessary, to 
conform with the rules in this system of accounts. The carrier operating 
property, non-carrier operating property and other non-operating 
property acquired shall be recorded in the appropriate subaccounts under 
accounts 1200, 1300, 1400 and 1450 based upon the fair market value or 
the cost specified in the purchase agreement if the latter does not 
exceed the fair market value of such property acquired. When the 
properties are recorded at cost specified in the purchase agreement or 
fair market value such amounts must be supported by report of a 
disinterested qualified appraiser and such additional evidence as the 
Commission may require. When an appraisal has not been obtained the 
original cost of carrier operating property, non-carrier operating 
property and other non-operating property together with the related 
depreciation reserves as shown in the books of seller shall be recorded 
in the accounts in lieu of market value.
    (ii) When purchase is made from an affiliated company the assets 
acquired including carrier operating property, noncarrier operating 
property and non-operating property, together with the related 
depreciation reserves and the liabilities assumed shall be recorded in 
the appropriate accounts at the amounts carried on the books of the 
affiliated transferor, adjusted, as may be necessary to conform with the 
rules in this system of accounts.
    (iii) The amount of the consideration paid in excess of the net 
assets acquired shall be included in account 1550, Other Intangible 
Property.

Where the consideration paid is less than the net assets acquired 
recorded in accordance with the foregoing provisions the difference 
shall be credited to account 2720, Premiums and Assessments on Capital 
Stock, where the consideration is paid in capital stock, and to account 
2900, Unearned Surplus, where the consideration is paid in other than 
capital stock.
    (2) Merger or consolidation in a pooling of equity interests of 
stockholders. (i) When a distinct operating unit is acquired by merger 
or consolidation in a pooling of equity interests of stockholders, in 
which all or substantially all of such equity interests in the 
predecessor company continue, as such, in a surviving company (which may 
be the transferee or a new company, created for the purpose) the assets, 
liabilities and the earned surplus or deficit, if any, of the 
predecessor company shall be recorded in the accounts of the transferee 
at amounts carried on the books of the predecessor company at date of 
consummation of the transaction. Such amounts shall be adjusted, if 
necessary, to conform with the rules in this system of accounts. Where 
one of the constituent corporations is clearly dominant and its 
stockholders obtain 90 percent or more of the voting interest in the 
combined enterprise there is a presumption that the transaction is a 
purchase rather than a pooling of interests and the transaction shall be 
so accounted for unless otherwise directed or authorized by the 
Commission.
    (ii) When the total par value or stated value of no par capital 
stock of the surviving company is more than the aggregate total of the 
capital stock of the separate companies before merger or consolidation 
the excess shall be charged to account 2900, Unearned Surplus, or to 
account 2930, Earned Surplus, if unrestricted unearned surplus is not 
available for such purpose.

When the total par value or stated value of no par capital stock of the 
surviving company is less than the aggregate total of the capital stock 
of the separate companies before merger or consolidation, the difference 
shall be credited to account 2900, Unearned Surplus.
    (3) Records. Detailed records, including copy of appraisal reports, 
shall be maintained showing the basis used for computing amounts 
included in accounts 1200, 1300, 1400, 1450, 1550, 2900, 2930, and other 
accounts. Full supporting details showing the purchase price, the 
principals from whom the property was acquired, and agents who 
represented such principals shall be stated in the journal entries 
recording the acquisition of the property.

[[Page 186]]

2-21  Operating property retired.
    When carrier operating property (see definition 10) ceases to be 
used (see definition 40) it shall be retired. If not dismantled or 
otherwise disposed of, it shall be transferred to account 1400, Non-
Carrier Operating Property, or account 1450, Non-Operating Property, as 
appropriate. (See instruction 23.)
    (a) Property under ``unit plan'' of depreciation. When a unit of 
property on which depreciation charges were accrued under the unit plan 
(see definition 22) is retired from service, the book cost of such 
property shall be credited to the appropriate property account and 
concurrently charged, together with the cost of removal, to the 
depreciation reserve account. Any salvage or insurance recovered, 
including amounts provided for in any insurance or other reserve with 
respect to the retired property when such reserve covers the cause of 
retirement, shall be credited to the depreciation reserve. Any 
difference remaining in the depreciation reserve after the above entries 
shall be charged or credited as appropriate to account 5091, 
Depreciation Adjustment.
    (b) Property under ``group plan'' of depreciation. When a unit of 
property, on which depreciation charges were accrued under the group 
plan (see definition 22), is retired from service, the book cost thereof 
shall be credited to the appropriate property account and concurrently 
charged, together with the cost of removal, to the depreciation reserve 
account. Any salvage or insurance recovered, including amounts provided 
for in any insurance or other reserve with respect to the retired 
property, when such reserve covers the cause of retirement, shall be 
credited to the depreciation reserve account.
    (c) Minor items. When the property retired constitutes a minor item 
(see definition 28), the book cost of which has been or will be 
accounted for by its inclusion in the unit of property of which it is a 
part when such unit of property is retired, no adjustment of the 
operating property account or depreciation reserve is required therefor. 
When a minor item is retired and replaced, with property of like 
purpose, the entire cost of replacement shall be charged to the account 
appropriate for the cost of repairs of the property retired, except that 
if the replacement effects a betterment (see definition 7), there shall 
be charged to the property account, the excess cost of the replacement 
over the estimated cost at current prices of the items retired (see 
instruction 19 (c)): Provided, That property bettered shall not be 
carried in excess of the current cost new of equivalent property.
    (d) Land. When land is sold, the book cost shall be credited to the 
land account and any difference between the book cost and the sales 
price, less commissions and expenses on the sale, shall be adjusted 
through account 6500, Other Non-operating Income, or account 7500, Other 
Deductions, as appropriate.
    (e) Determination of book cost. The book cost of operating property 
retired shall be the amount at which such property is included in the 
operating property accounts including all items set forth in instruction 
19. Such costs shall be determined from the carrier's records when this 
can be done, as in the case of land, structures, revenue automotive 
equipment, service equipment, furniture, and other items of operating 
property for which individual cost records are available. When the 
actual book cost cannot be determined from the records, it shall be 
estimated. When it is impracticable to determine the book cost of each 
item due to the relatively large number and/or small cost of such items, 
the average book costs of all the items, with due allowance for 
differences in size or character, shall be used as the book cost of the 
items retired. The latter method may be applied in retirement of such 
items as spare parts, tools, etc.
    (f) Intangibles. The accounting for the retirement of items included 
in account 1511, Franchises, account 1541, Patents, and intangible 
elements with limited terms included in account 1201, Land and Land 
Rights, shall be as provided in the texts of account 2600, Reserve for 
Amortization--Carrier Operating Property, and account 5100, Amortization 
of Carrier Operating Property.

[[Page 187]]

    (g) Sale of property. When operating property used in transportation 
operations is sold together with the transportation business associated 
therewith, the book cost of the property shall be credited to the 
appropriate operating property accounts and the amounts carried with 
respect thereto in the depreciation and amortization reserve accounts, 
estimated if necessary, shall be charged to such reserves. The 
difference, if any, between (1) the net amount of such debit and credit 
items, and (2) the consideration received for the property, shall be 
included in account 6500, Other Non-operating Income, or account 7500, 
Other Deductions, as appropriate. (See instruction 7.)

[32 FR 20280, Dec. 20, 1967, as amended at 40 FR 53252, Nov. 17, 1975]
2-22  Leased property; expenditures.

    (a) Except as provided in paragraph (b) of this section, the cost of 
initial improvements, including rearrangements, additions and 
betterments to property leased from others made in the course of 
preparing the property for motor carrier operations and the cost of any 
subsequent additions to and betterments of such leased property shall be 
charged to the operating property account 1271, Improvements to 
leasehold property. Depreciation on such expenditures shall be provided 
for in accordance with instruction 25.
    (b) When the cost of alterations to leased transportation property 
otherwise chargeable to account 1271, Improvements to leasehold 
property, is not in excess of $500.00 or the period of the lease is less 
than one year, the cost may be charged to the accounts chargeable with 
the cost of repairs to such property. Changes in method of applying this 
rule shall be reported to the Commission.

[46 FR 45959, Sept. 16, 1981]
2-23  Transfer of property.
    Property transferred between accounts 1200, Carrier Operating 
Property, 1300, Carrier Operating Property Leased to Others, and 
accounts 1400, Non-Carrier Operating Property, 1450, Non-Operating 
Property, shall be charged or credited, as appropriate, to the carrier 
operating property accounts 1200 and 1300 at its book cost with the 
debits or credits to the appropriate accounts for the accrued 
depreciation and amortization to date of transfer.
2-24  Common property.
    (a) If the carrier is engaged in forms of enterprise other than 
motor carrier operations and any of its carrier operating property is 
used in common for two or more purposes to such an extent and in such 
manner that it is otherwise impracticable to segregate it in the 
accounts, an allocation of the book cost thereof shall be made and the 
portion so ascertained to be assignable to motor carrier operations 
shall be recorded in the carrier operating property accounts 1200 and 
1300. The remainder shall be recorded in accounts 1400 or 1450 as 
appropriate. It is not contemplated that minor or temporary changes in 
conditions shall necessitate frequent reallocations of common property.
    (b) The carrier shall be prepared to show at any time and to report 
to the Commission when required, and by carrier operating property 
accounts 1200 and 1300 the following:
    (1) The book cost of common property.
    (2) The allocation of such cost to carrier operations and other 
purposes for which the jointly operated property is used, and
    (3) The basis of the allocation.
    (c) The expenses of operation, maintenance, depreciation and 
amortization of common property shall be recorded in the accounts 
prescribed in this part and the allocation of such expenses to the 
carrier operations shall be supported in the same manner as the 
allocation of the cost of such property.
2-25  Depreciation accounting.
    (a) There shall be charged each month (or 4-week period) to account 
5000, Depreciation Expense, and credited to account 2500, Reserve for 
Depreciation--Carrier Operating Property, during the service life of 
depreciable property, included in account 1200, Carrier Operating 
Property, amounts which will approximate the loss in service value not 
restored by current

[[Page 188]]

maintenance or covered by insurance, the effect of which can be forecast 
with a reasonable approach to accuracy. The straight-line method of 
computing depreciation (see definition 38) shall be used and the current 
depreciation charge shall be obtained by applying the applicable portion 
of the annual percentage rate to the book cost balances, except that the 
mileage method (see definition 27) may be used on automotive equipment, 
in which event the rate per mile shall be applied to the number of miles 
traveled each period. In no event, however, shall the charges based on 
such mileage method be less during any calendar year than would result 
from the application of rates based on the straight-line method.
    Carriers engaged in seasonal operations may apportion the estimated 
annual depreciation charge over the months in which operations are 
actually conducted.
    (b) Depreciation charges on property included in accounts

1211  Structures
1221  Revenue Equipment
1231  Service Cars and Equipment

shall be computed on the unit plan (see definition 22) under the 
straight-line method. Depreciation charges on any unit of property which 
is depreciated under the unit plan shall cease when the estimated 
service value shall have been credited to the depreciation reserve.
    (c) Depreciation charges on property included in accounts

1241  Shop and Garage Equipment
1251  Furniture and Office Equipment
1261  Miscellaneous Equipment

shall be computed under either the unit plan or the group plan. (See 
definition 22.) If the group plan is used the current depreciation 
charge shall be determined by applying the applicable portion of the 
annual percentage rate to the sum total of the book cost balances of the 
property included in each account, or subdivisions thereof, at the rate 
determined from weighted averages of service lives of the property 
included therein.
    (d) Depreciation charges on property included in account 1271--
Improvements to Leasehold Property, shall be made upon the same basis as 
for similar depreciable property includible in other property accounts. 
However, where it is reasonably certain that the lease will not be 
renewed and the property will revert to the lessor it should be 
depreciated over the remaining period of the lease or its estimated 
service life, whichever is less.
    (e) Depreciation charges upon operating property constituting a 
distinct operating unit (see definition 24), leased from others under 
terms whereby the carrier has exclusive possession, shall be made on the 
same basis as for owned depreciable property. (See instruction 30.) 
Records shall be maintained similar to those for owned property showing 
the cost, service life and salvage value for each unit of depreciable 
operating property leased from others.
    (f) Depreciation charges on operating property constituting a 
distinct operating unit (see definition 24) leased to others for 
transportation operations, when the lessee has exclusive possession, 
shall be charged to account 5500, Income from Lease of Carrier Property, 
Credit, with concurrent credits to account 2500, Reserve for 
Depreciation--Carrier Operating Property.
    (g) Depreciation expense on non-carrier operating property and non-
operating property shall be charged to the appropriate Other Income 
account and credited to account 2610, Reserve for Depreciation and 
Amortization, Other Property.
2-26  Cost of repairs.
    (a) The cost of repairs chargeable to the various operation and 
maintenance expense accounts includes labor employed, materials used, 
and expenses incurred in all current maintenance (not including 
depreciation and amortization), such as:
    (1) Inspecting, testing, and reporting on the condition of operating 
property specifically to determine the need for repairs, minor 
replacements, rearrangements, and changes.
    (2) Testing for, locating, and clearing trouble.
    (3) Routine work to prevent trouble, such as general overhauling, 
removing carbon, grinding valves, adjusting and relining brakes, 
adjusting shock absorbers, cleaning and adjusting engines, etc.

[[Page 189]]

    (4) Replacing minor items of operating property. (See also 
instruction 21(c).)
    (5) Rearranging and changing the location of property not retired.
    (6) Restoring the condition of property damaged by wear and tear, 
storms, breakage, floods, fire, accident, or other casualties. (See also 
paragraph (b) of this section.)
    (7) Training employees, for repair work.
    (8) Inspecting and testing after repairs have been made.
    (b) Materials recovered in connection with repairs to property shall 
be credited to the same account to which the repair cost was charged.
    (c) If employees engaged in transportation, station or terminal 
service are also required to make repairs, an equitable proportion of 
their pay and expenses shall be charged to the account appropriate for 
the cost of such repairs. (See instruction 28.)
    (d) If the book cost of any property is carried in account 1281, 
Undistributed Property, the repairs to such property shall be charged to 
the accounts provided for repairs to property of the same nature and 
use, the book cost of which is carried in other operating property 
accounts. Repairs to property leased from others shall be treated in 
like manner.
2-27  Insurance.
    (a) Provision has been made under Operation and Maintenance Expenses 
for recording amounts of premiums paid outside insurance companies in 
accounts as follows:

4520  Public Liability and Property Damage Insurance.
4541  Workmen's Compensation, Insurance.
4550  Baggage and Express Insurance.
4570  Fire and Theft Insurance.
4580  Other Insurance.

    Premiums paid in advance shall be charged to account 1170, 
Prepayments, and equitably distributed to the appropriate accounts over 
the period for which the premiums have been paid, except minor premiums 
which may be charged direct and premiums chargeable to construction.
    (b) Carriers authorized by the Commission to accrue charges for the 
purpose of estimating losses sustained by others not covered by 
commercial insurance and representing liabilities to the carrier, such 
as bodily injury and property damage insurance and cargo loss and damage 
insurance, shall record periodic charges to the appropriate expense 
accounts in amounts sufficient to cover estimated losses based on the 
carrier's experience.
    (c) The following accounts have been provided under Operation and 
Maintenance Expenses for the purpose of estimating amounts sufficient to 
settle claims by others for the classes of risks cited above which are 
not covered by commercial insurance:

4530  Injuries and Damages.
4546  Workmen's Compensation--Provision for Claims.
4560  Baggage and Express Loss and Damage.
4570  Fire and Theft Insurance.
4580  Other Insurance.

    Accruals for estimated claims from injuries and damages, workmen's 
compensation and baggage and express loss and damage shall be included 
in account 2680, Injuries, Loss and Damage Reserves. The carrier shall 
not accrue amounts to cover risk of loss or damage to its property from 
fire, theft, or similar loss contingencies.
    Periodic charges to expense accounts for the purpose of creating 
accruals for the estimated liability for losses sustained by others not 
covered by outside insurance shall be determined currently by the 
carrier from its best source of information and the rates used may be 
based on percentage of revenue, mileage of buses, amount of payrolls or 
other equitable basis.

[32 FR 20280, Dec. 20, 1967, as amended at 37 FR 25845, Dec. 5, 1972; 41 
FR 32598, Aug. 4, 1976]
2-28  Distribution of pay and expenses of employees.
    The charges to investments, operation and maintenance expenses, and 
other accounts for services and expenses of employees engaged in 
activities chargeable to various accounts, shall be based upon the 
actual time engaged in the respective classes of work, or in case that 
method is impracticable, upon the basis of a study of the

[[Page 190]]

time actually engaged during a representative period. The pay and 
expenses of an employee of one department who occasionally performs 
incidental services involving but small expense for another department 
may be included in the expense of the department in which the employee 
is regularly employed.
2-29  Joint expenses.
    Where the carrier owns the joint facility, any amounts received as 
reimbursement of operation and maintenance costs shall be credited to 
the appropriate joint facilities--credit account under maintenance and 
garage expenses; station and terminal expenses; or administrative and 
general expenses. Any amounts received for depreciation, taxes and 
return on the joint facility, shall be credited to account 5390, Joint 
Facility Rents--Credit. Similarly, any amounts paid by the carrier under 
joint facility arrangements for operating and maintenance costs shall be 
charged to the appropriate joint facilities--debit account in the 
operation and maintenance expense group of accounts and any amounts paid 
for depreciation, taxes and return on the joint facility, shall be 
charged to account 5340, Joint Facility Rents--Debit.
2-30  Rent and lease of carrier property.
    (a) Provision is made in the several subdivisions of account 5300, 
Operating Rents--Net, for rents receivable and payable for use of 
property other than that constituting a distinct operating unit or 
system. (See definition 24.)
    (b) Taxes payable by the lessee upon property rented or leased shall 
be included in account 5200, Operating Taxes and Licenses, by the 
lessee.
    (c) Other expenses payable by the lessee shall be included in the 
appropriate accounts on the books of the lessee.
    (d) Amounts payable for use of operating property constituting a 
distinct operating unit (see definition 24) leased from others under 
terms whereby the carrier has exclusive possession shall be apportioned 
between rent and depreciation. The portion covering rent shall be 
included in account 5400, Rent for Lease of Carrier Property--Debit, and 
the portion covering depreciation shall be included in account 5000, 
Depreciation Expense. (See instruction 25.)
    (e) The lessor shall credit the amount receivable for use of the 
property leased to account 5500, Income from Lease of Carrier Property--
Credit. The lessor shall charge the estimated depreciation accrual to 
account 5500 and credit account 2500, Reserve for Depreciation--Carrier 
Operating Property.
    (f) If settlement for either rent or depreciation is not made 
currently the amounts thereof shall be accrued by both lessor and lessee 
in harmony with the instructions in paragraphs (c) and (d) of this 
section. The amounts accrued receivable, and payable, should be included 
in appropriate accounts classified under accounts 1890, Other Deferred 
Debits, and 2450, Other Deferred Credits, by the lessor and lessee, 
respectively.
2-31  Amortization of intangibles.
    (a) For intangible assets acquired after December 31, 1979, the cost 
of the asset shall be amortized by systematic charges to account 5100, 
Amortization of Carrier Operating Property, or account 7500, Other 
Deductions, as prescribed by the account texts for accounts in the 1500 
series. Systemtic charges shall be made over the period of useful life 
not to exceed 40 years from the date of acquisition. Such charges shall 
be based on the straight line method of amortization unless the carrier 
demonstrates that another method more adequately reflects the decline in 
economic service value of the asset.
    (b) For unamortized intangible assets acquired after October 31, 
1970, but before December 31, 1979, the cost of the assets shall be 
adjusted in the accounts to retroactively reflect the generally accepted 
accounting principle of amortization of intangible assets. Subsequent 
accounting shall be in accordance with paragraph (a) above.
    (c) For intangible assets held before November 1, 1970, the carrier 
shall consider the life expectancy of the asset to determine the 
appropriate accounting. Intangible assets with limited lives shall be 
amortized over their estimated

[[Page 191]]

period of future use. A retroactive adjustment shall be necessary if the 
particular intangible asset has never been amortized. Intangible assets 
with indeterminate lives may remain unamortized or may be amortized 
prospectively over a period of 40 years from date of acquisition.

[46 FR 59545, Dec. 7, 1981]
2-32  Accounting for income taxes.
    (a) The interperiod tax allocation method of accounting shall be 
applied where material timing differences (see definition 1-41(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 8000, Income taxes on ordinary income, and 
account 9050, Income taxes on extraordinary items, as applicable.
    (b) Under the interperiod tax allocation method of accounting the 
tax effect of timing differences (see definition 1-41) 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 Commission. 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 (1) there is no associated asset or liability or (2) 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 8000, Income taxes on 
ordinary income, or account 9050, Income taxes on extraordinary items, 
as applicable, and charge account 2120, 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 8040, 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 8040. Provision for deferred 
taxes or account 9060, Provision for deferred taxes--extraordinary 
items, as applicable, and shall credit account 2460. 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

[[Page 192]]

shall be a mortized by credits to account 8040, Provision for deferred 
taxes.

    Note A: Any change in practice of accounting for the investment tax 
credit shall be reported promptly to the Commission. Carriers desiring 
to clear deferred investment tax credits because of a change from the 
deferral method to the flow through method shall submit the proposed 
journal entry to the Commission 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 Commission.

[39 FR 33348, Sept. 17, 1974, as amended at 40 FR 53253, Nov. 17, 1975; 
47 FR 12350, Mar. 23, 1982]
2-33  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 Commission 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).
    (b) Each bill rendered by an affiliated company shall state 
specifically the basis used for determining charges, unless the file 
contains other information to support the specific basis for charges.
    (c) Punched cards, magnetic tapes, discs, or other machine-sensible 
device 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 transactions.
    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 2-34).
    (e) Nothing contained herein shall be construed as restraining the 
carrier from subdividing accounts (see instruction 2-2(d)) for the 
purpose of recording separately transactions with affiliated companies.

[40 FR 44564, Sept. 29, 1975]
2-34  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 operations 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 7500, Other Deductions.

[40 FR 44564, Sept. 29, 1975]

2-35  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,

[[Page 193]]

    (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 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) Amortization of the recorded asset shall be as follows:
    (1) If the lease meets either the first or the second criteria for 
capitalization, the asset shall be amortized in accordance with the 
lessee's normal depreciation policy.
    (2) If the lease does not meet the first or second criteria, the 
asset should be amortized over 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 
Commission.

[42 FR 56613, Oct. 27, 1977]
2-36  Transfers from government authorities.

    When a Federal, State, or municipal government transfers cash or 
other assets to a motor carrier of passengers, 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 3700, ``Operating Revenues--Transfers from Government 
Authorities for Current Operations'' when received:
    (1) Payments as reimbursement for operating losses sustained on a 
specific route or in a certain region, such as

[[Page 194]]

support of busline commuter operations;
    (2) Subsidies designated by the donor to offset operating expenses 
of the recipient, 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 2410, ``Deferred Revenues--Transfers from Government 
Authorities'' when received. Account 2410 shall be periodically charged, 
and account 3800, ``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 porperty shall be included in 
account 2900, ``Unearned Surplus'' in the manner described in the text 
of that account.
    (d) The provisions of this section do not apply to government 
payments for specific services rendered by the carrier in transporting 
passengers by bus line (other than services described in paragraph 
(a)(1) of this section). Such payments shall be included in account 
3000, ``Operating Revenues (Exclusive of Government Transfers).''
    (e) The provisions of this section do not apply to government 
transfers relating to other than carrier operations.
    (f) The provisions of this section do not apply to government 
transfers in exchange for debt and/or equity securities of recipients.
    (g) Government transfers shall generally be recorded when made 
available to the carrier. However, transfer relating to specific 
operations shall be recorded as earned.
    (h) Government transfers in the form of assets other than cash shall 
be recorded at fair value when received.

[43 FR 30560, July 17, 1978]
2-37  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;
    (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

[[Page 195]]

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]

                      Balance Sheet Accounts1
---------------------------------------------------------------------------

    1For form of balance sheet statement, see account 2999.
---------------------------------------------------------------------------

                               asset side

                             Current Assets

1000  Cash.
    This account shall include the amount of current funds available for 
use on demand in the hands of financial officers and deposits in banks 
or trust companies; also cash in transit for which agents or drivers 
have received credit.

    Note A: This account shall be credited with the amount of checks or 
drafts transmitted to payees.
    Note B: Funds subject to withdrawal restrictions: Funds subject to 
such restrictions and deposits in closed banks shall not be included in 
this account. Such funds definitely known to be available within 1 year 
shall be included in account 1190, Other Current Assets. Deposits in 
closed banks which are not available within 1 year shall be included in 
account 1890, Other Deferred Debits.
    Note C: Compensating balances (see definition 1-44) 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 
1043, ``Miscellaneous special deposits'' or account 1781, 
``Miscellaneous special funds.''

[32 FR 20280, Dec. 20, 1967, as amended at 41 FR 9159, Mar. 3, 1976]
1020  Working funds.
    This account shall include amounts advanced to officers, agents, 
employees, and others as petty cash or working funds from which certain 
expenditures are to be made and accounted for.
1040  Special deposits.
    This account shall include the balance of the amounts included in 
accounts 1041, 1042, and 1043, for short-term deposits.
1041  Interest, special deposits.
    This account shall include moneys and bank credits specially 
deposited in the hands of fiscal agents or others for the payment of 
interest on behalf of the carrier. When interest is paid from such 
deposits, it shall be credited to this account and charged to the 
appropriate accrued or matured interest account. Payments to trustees or 
other agents of the holders of bonds or other securities of the interest 
accrued thereon which operate under the terms of the securities or of 
mortgages supporting such securities as a release of the paying company 
from further liability for such interest, shall be charged to the 
appropriate interest accrual account.
1042  Dividend, special deposits.
    This account shall include moneys and bank credits in the hands of 
fiscal agents or others for the payment of dividends on behalf of the 
carrier. When dividends are paid from such deposits they shall be 
credited to this account and charged to the appropriate dividend 
account.
1043  Miscellaneous special deposits.
    This account shall include compensating balances (see definition 1-
44)

[[Page 196]]

under an agreement which legally restricts the use of such funds and 
which constitute support for short-term borrowing arrangements, and 
moneys and bank credits in the hands of fiscal agents or others for 
special purposes other than the payment of interest or dividends. This 
includes cash or securities deposited with Federal, State, or municipal 
authorities, public utilities, or others, as a guaranty for the 
fulfillment of obligations. Entries to this account shall specify the 
purpose for which the deposit is made. When such purposes are satisfied 
and the deposit is released, this account shall be credited with the 
amount deposited.

    Note: Deposits available for general company purposes shall be 
included in account 1000, Cash.

[41 FR 9159, Mar. 3, 1976]
1060  Temporary cash investments.
    (a) This account shall include the book cost (see instruction 15) of 
investments such as time drafts receivable and time loans, bankers' 
acceptances, United States Treasury certificates, marketable securities, 
and other similar investments acquired for the purpose of temporarily 
investing cash. Any securities included in this account must be of such 
a nature as to be readily convertible into cash at substantially the 
book value.
    (b) This account shall be sub-divided to reflect separately:
    (1) Temporary Cash Investments--Associated Companies.
    (2) Temporary Cash Investments--Other.
    (c) This account shall also be subdivided to reflect the marketable 
equity securities' portion (and it corresponding valuation allowance) 
and other temporary investments. (See instruction 2-15.)

    Note A: Amounts carried in this account as pledged shall be shown 
separately from amounts unpledged.
    Note B: There shall not be included in this account amounts properly 
includible in accounts 1600, Investments and Advances--Associated 
Companies, or 1650, Other Investments and Advances.

[32 FR 20280, Dec. 20, 1967, as amended at 42 FR 33300, June 30, 1977]
1080  Notes receivable.
    (a) This account shall include the book cost, not includible 
elsewhere, of all collectible obligations in the form of notes 
receivable, contracts receivable, and similar evidences (except interest 
coupons) of money receivable on demand or within a time not exceeding 1 
year from date of issue.

    Note A: Notes receivable from associated companies shall be included 
in account 1100, Receivables from Associated Companies.
    Note B: The amount of notes receivable discounted, sold or 
transferred, unless transferred without recourse, shall be credited to 
account 2000, Notes Payable.

    (b) This account shall be sub-divided to reflect separately:
    (1) Notes Receivable--Officers, Stockholders and employees.
    (2) Notes Receivable--Other.
1100  Receivables from associated companies.
    (a) This account shall include the total of amounts receivable from 
associated companies (see definition 6(a)) which are subject to current 
settlement (see definition 17), such as balances in open accounts for 
services rendered, material furnished, traffic or interline accounts, 
claims, rent for use of property and similar items; interest and 
dividends due from associated companies; and loans, notes and drafts for 
which associated companies are liable.
    (b) This account shall be sub-divided to reflect separately:
    (1) Loans and Notes Receivable--Associated Companies.
    (2) Interest and Dividends Receivable--Associated Companies.
    (3) Accounts Receivable--Associated Companies.

    Note A: On the balance sheet, accounts receivable from associated 
companies shall be set off against accounts payable to the same 
companies.
    Note B: No amount representing dividends receivable shall be 
included in this account unless they have been declared or guaranteed.
    Note C: Items which are not subject to current settlement shall be 
included in account 160, Investment and Advances--Associated Companies.

[[Page 197]]

1120  Accounts receivable.
    (a) This account shall include amounts due from others (except 
associated companies) for material and supplies furnished and services 
rendered including transportation and storage charges, use of property, 
other matured rents, amounts owing by public authorities, amounts of 
collectible judgments, current accounts with officers and employees, and 
other accounts and claims upon which responsiblity is acknowledged by 
solvent concerns or individuals.
    (b) This account shall also include the balances due from other 
carriers (except associated companies), against each of which there is a 
net debit balance representing traffic or interline accounts; also the 
net balance in current accounts due from agents, drivers, and other 
employees and representatives charged with the collection or custody of 
current revenues.
    (c) This account shall be sub-divided to reflect separately:
    (1) Accounts Receivable--Officers, stockholders and employees.
    (2) Traffic or interline account balances.
    (3) Accounts receivable--Others.

    Note A: Amounts advanced to officers, employees, or others as 
working funds, shall be included in account 1020, Working Funds.
    Note B: Accounts with other carriers representing traffic and 
interline accounts which contain net credit balances shall be included 
in account 2050, Accounts Payable.
1140  Subscribers to capital stock.
    (a) This account shall include the balance due from subscribers upon 
legally enforceable subscriptions to capital stock.
    (b) The amount of each subscription shall be charged to this account 
at the time the subscription is accepted. Concurrently there shall be 
credited to account 2730, Capital Stock Subscribed, the par or stated 
value of the stock subscribed or the agreed purchase price in the case 
of non-par stock without a stated value. Appropriate entries shall 
likewise be recorded with respect to any discount or premium on par 
value stocks or non-par value stocks with a stated value.

    Note: The records supporting the entries to this account shall be 
kept so that the corporation can furnish the name and address of each 
subscriber, the amount and kind of capital stock subscribed, the date of 
subscription, the date that each payment is due and the date that each 
is paid, the nature of each payment (whether cash or other 
consideration), and any other information that is necessary to make the 
history of the subscription complete.
1160  Interest and dividends receivable.
    This account shall include the amount of current 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, 
etc.; and the amount of dividends receivable on stocks owned. (See 
instruction 10.)

    Note A: Interest and dividends receivable from associated companies 
shall be included in account 1100, Receivables from Associated 
Companies.
    Note B: Interest which is not subject to current settlement shall be 
included in the account in which is carried the principal on which the 
interest is accrued.
    Note C: No amount representing dividends receivable shall be 
included in this account unless they have been declared or guaranteed.
    Note D: No interest or dividends on securities or obligations issued 
or assumed by the carrier shall be included in this account.
1170  Prepayments.
    This account shall include the balances representing payment of 
items in advance of their accrual, the benefit of which is to be 
realized subsequent to the time of such payment. Entries shall be made 
each period transferring from this account to the appropriate account 
the portion of each prepayment which is applicable to that period. The 
account shall be kept so that there can be determined readily the 
amounts applicable to the following:

    (a) Taxes and licenses.
    (b) Insurance.
    (c) Interest.
    (d) Rents.
    (e) Tires and tubes (see account 4160, Tires and Tubes--Revenue 
Equipment).
    (f) Miscellaneous.

    Note A: Prepayments of minor items applicable to the current year 
may be charged directly to the appropriate operation and maintenance 
expense or other accounts.

[[Page 198]]

    Note B: Interest and finance fees included in the face value of 
equipment and other obligations (a liability being recorded at face 
value) shall be included in account 1890, Other Deferred Debits.

[37 FR 25845, Dec. 5, 1972]
1180  Material and supplies.
    (a) This account shall include the cost (less cash or other 
discounts when they can be determined) of all unapplied materials and 
supplies, including tools, repair parts, fuel, tires and tubes, etc. 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 at the 
option of the carrier, it may include a suitable proportion of 
purchasing and store expenses in which case corresponding credits shall 
be made to the appropriate account. The cost shall also include sales 
and excise taxes on material purchases. Sales and excise taxes on 
gasoline, other motor fuels, motor oil, and tires and tubes, shall be 
charged to account 5200--Operating Taxes and Licenses. Other sales and 
excise taxes may be included in this account as part of the cost of 
materials purchased, or charged to account 5200 if the tax can be 
readily separated from the cost of the material.
    (b) When any materials or supplies, the cost of which has been 
charged to this account, are issued for use, the amount at which they 
stand charged herein shall be credited to this account and charged to 
the appropriate construction, operation and maintenance expense, or 
other account. Such amount may be based upon the average cost of all 
items of a given type included in this account at the beginning of the 
period.
    (c) Materials recovered in connection with construction, 
maintenance, or the retirement of property shall be charged to this 
account as follows:
    (1) Re-usable materials shall be included in this account at amounts 
not to exceed cost, estimated if not known.
    (2) Scrap and non-usable materials shall be carried at the estimated 
salvage value. So far as practicable, the difference between the amounts 
realized from sale or disposal and the amounts at which the materials 
are carried in this account shall be adjusted in the depreciation 
reserves, repair accounts, or other accounts which were credited when 
the materials were charged to this account.

    Note A: Interest charged on material bills, the payment of which is 
delayed, shall be charged to account 7100, Other Interest Deductions.
    Note B: Inventories of materials and supplies shall be taken at 
intervals of one year or less, and the necessary adjustment shall be 
made to bring this account into harmony with the actual physical 
inventory. In effecting this adjustment, differences which may 
practicably be assigned to important classes of materials shall be 
equitably distributed among the accounts to which such classes of 
materials are oridinarily chargeable. Other differences shall be 
equitably apportioned among the operation and maintenance accounts to 
which materials have been charged since the last inventory. Such 
differences that cannot be allocated to the operation and maintenance 
accounts shall be included in account 4655, Purchasing and Store 
Expenses.
    Note C: Sales taxes on gasoline, other motor fuels and motor oil and 
personal property taxes assessed on material and supplies shall be 
included in account 5200, Operating Taxes and Licenses.
1190  Other current assets.
    This account shall include the amount of all assets of a current 
nature not includible in any of the foregoing current asset accounts. 
(See definition 17.)
1195  Deferred income tax debits.
    This account shall include the current portion of deferred income 
tax debits and credits determined in accordance with instruction 2-32, 
when the balance is a net debit. A net credit balance shall be included 
in account 2185, ``Deferred income tax credits''.

[47 FR 12351, Mar. 23, 1982]

                            Tangible Property

1200  Carrier operating property.
    (a) This account shall include the total of the amounts representing 
the cost (see instruction 19) of carrier operating property, included in 
accounts 1201 to 1291, inclusive, owned and used by the carrier in its 
motor carrier operations, and which has an expected life

[[Page 199]]

in service of more than 1 year, including such property owned by the 
carrier but held by nominees.
    (b) When property normally having a service life of more than 1 year 
is installed for temporary use in motor carrier operations, it shall be 
accounted for in the same manner as property installed for permanent 
use.
    (c) Records shall be kept so as to reflect separately the cost and 
date of acquisition of property jointly owned and property operated 
under a joint agreement; also the cost and date of acquisition of each 
structure, unit of equipment, or other major item of property (or at the 
option of the carrier of each body, chassis or other major part). When a 
major part of a unit of property, such as a body or chassis of equipment 
or portion of a structure has been replaced by either a new or rebuilt 
one, details shall appear in the supporting records showing also the 
cost of the property removed, the cost of the replacement, and the date 
of removal or replacement. If property such as a structure or unit of 
equipment is constructed new, or rebuit by the carrier to increase its 
capacity or otherwise add to its usefulness for motor carrier service, 
or if parts are purchased and assembled by the carrier, the cost records 
for construction and assembly shall be maintained in a sufficiently 
complete manner to show the cost of labor, materials and other expenses 
incurred in such work.
    (d) When a structure, unit of equipment, or other property is so 
rebuilt or remodeled as to create an expectation of service life fairly 
comparable with new property, the old property shall be retired 
(instruction 21). Charges to this account for the rebuilt or remodeled 
property shall be based upon the appraised value of the reused parts, or 
the net book cost at time of retirement of the retired unit, whichever 
is lower, plus the cost of rebuilding or remodeling. Provided, however, 
That in no event shall the total amount charged exceed the cost of 
similar new property.
    (e) The cost of removing old appliances and replacing them with new 
appliances shall be charged to the proper account under operation and 
maintenance expenses.
    (f) The cost of additions to and betterments of property leased from 
others shall be recorded in account 1271, Improvements to Leasehold 
Property. (See instruction 22.)
1201  Land and land rights.
    (a) This account shall include the cost (see instruction 19) 
including the amount of mortgages of other liens, assumed, of land or 
interest in land, having a life of more than 1 year, for use directly in 
connection with the motor carrier operations of the carrier for such 
purposes as general office buildings, shops, garages, stations, 
terminals, waiting rooms, shelters, loading platforms, warehouses, and 
the like. This includes the first cost of acquiring leaseholds of land, 
easements, and rights-of-way, but no rents payable periodically in 
consideration of rights so obtained.
    (b) The cost of buildings and other improvements (other than public 
improvements) shall not be included in the land accounts. If at the time 
of acquisition of an interest in land such interest extends to buildings 
or other improvements (other than public improvements), which are then 
devoted to carrier operations, the land and improvements shall be 
separately appraised and the cost allocated to land and buildings or 
improvements on the basis of the appraisals. If the improvements are 
removed or wrecked without being used in carrier operations, the cost of 
removing or wrecking shall be charged and the salvage credited to the 
account in which the cost of the land is recorded.
    (c) Carriers shall keep the records so as to show separately the 
cost of each parcel of land or interest therein and the purpose or 
purposes for which used in motor carrier operations.

                                  items

Clearing land of brush, trees, and debris (First cost of).
Condemnation proceedings, including court costs and special counsel 
fees.
Consents and abutting damages, payment for.
Conveyancers' and notaries' fees.
Easements and rights-of-way, cost of, and expenses of acquisition.
Fees and commissions to brokers and agents.
Grading.
Land, cost of.

[[Page 200]]

Leases having a life of more than 1 year, costs of expenses incidental 
to acquiring.
Leases, voiding, to secure possession of land.
Relocating property of others.
Rights-of-way, including costs of locating.
Sidewalks on public streets abutting carrier's property.
Special assessments on the basis of benefits for new roads, new bridges, 
new pavements, new sewers, and other public improvements (but not any 
taxes levied to provide for maintenance of such improvements).
Surveys.
Taxes assumed, accrued prior to date of transfer of title.
Title, examining, registering, clearing, insuring and defending against 
claims relating to period prior to purchase.

    Note A: When land is acquired in excess of that required for motor 
carrier operations, or for which there is not a definite plan for its 
use in such service within 1 year, the cost of such land shall be 
charged to account 1400, Non-Carrier Operating Property, or to account 
1450, Non-Operating Property, as appropriate. If land originally charged 
to either of these accounts is later used for motor carrier operations, 
it shall be charged to Carrier Operating Property in service at its cost 
when acquired. (See instruction 23.)
    Note B: Assessments for public improvements upon which payments are 
deferred shall be charged to this account in full and the unpaid balance 
carried in the appropriate liability account. Interest on unpaid 
balances shall be charged to the appropriate income deduction account.
1211  Structures.
    (a) This account shall include the cost in place (see instruction 
19) of structures used in motor carrier operations. This includes 
buildings or constructions to house, support, or safeguard property or 
persons, with all appurtenant fixtures permanently attached thereto, and 
improvements to land, and other structures or constructions.
    (b) Carriers shall keep their records so as to show separately the 
cost of each structure included in this account and the purpose or 
purposes for which used in motor carrier operations.

                                  items

Architect's plans.
Ash pits.
Awnings.
Boilers, furnaces, piping, wiring, fixtures and machinery for heating, 
lighting, signaling, ventilating and plumbing.
Bridges and culverts.
Chimneys.
Commissions and fees to brokers, agents, architects, and others.
Conduits (not to be removed).
Damages to abutting property during construction.
Door checks and door stops.
Drainage and sewerage systems.
Elevators, cranes, hoists, etc., and the machinery for operating them.
Excavation, including shoring, bracing, bridging, refill and disposal of 
excess excavated material.
Fences and hedges.
Fire protection systems.
Floor covering (permanently attached).
Foundations and piers for machinery constructed as a permanent part of a 
building or other unit listed herein.
Grading and preparing grounds for buildings, including landscaping of 
grounds after construction.
Leases, voiding, to secure possession of structures.
Oil pits and drainage systems.
Outside lighting systems.
Partitions, including movable.
Painting, first.
Permits and privileges, building.
Platforms, railings and gratings, when constructed as part of structure. 
Power boards for service to a building.
Refrigerating systems.
Retaining walls.
Scales, connected to and forming part of the structure.
Screens.
Sidewalks, pavements and driveways on building grounds.
Sprinkling systems.
Storage facilities constituting part of building.
Storage tanks.
Storm doors and windows.
Structures, cost of.
Subways, areaways, and tunnels, directly connected to and forming part 
of the structure.
Vaults, constructed as part of the building.
Water supply system for building or general company purposes.
Window shades and ventilators.

    Note A: The cost of specially provided foundations not expected to 
outlast the machinery or apparatus for which they are provided, and the 
cost of angle irons, castings, etc., installed at the base of an item of 
equipment shall be charged to the same account as the cost of the 
machinery or equipment.
    Note B: When part of a structure is removed in order to build an 
extension thereto, the accounting therefor shall be in accordance with 
instruction 21.

[[Page 201]]

1221  Revenue equipment.
    (a) This account shall include the cost (see instruction 19) of all 
units of revenue passenger equipment, and the cost of the first set of 
accessory equipment necessary to fit them for service, excluding tires 
and tubes (see account 4160, Tires and Tubes--Revenue Equipment). The 
term revenue passenger equipment includes body and chassis and all 
fixtures and appliances inside of or attached to the body or chassis.
    (b) If revenue passenger equipment is purchased in a condition ready 
for service, the cost shall include the invoice or contract price 
(excluding tires and tubes), less discount, if any, plus freight, excise 
taxes, insurance in transit, unloading costs and other expenses incurred 
in obtaining delivery of these vehicles upon the premises of the carrier 
such as drive-away charges, and the cost of any additions or attachments 
made after delivery.
    (c) This account may also include the cost of spare engines and 
other major units carried on hand for the purpose of temporarily 
replacing such units taken into the shop for overhauling, repairing, or 
any other reason.

                                  items

Automobiles.
Busses.
Combination busses.
Horses and mules.
Stages.
1231  Service cars and equipment.
    This account shall include the cost (see instruction 19) of 
automotive vehicles used in connection with keeping revenue vehicles in 
operation, including cars and trucks used as trouble wagons for 
servicing revenue vehicles on the road. This account shall also include 
the cost of the first set of appliances or accessory equipment, 
including tires and tubes, necessary to fit such vehicles for service, 
such as cranes, hoists and other appliances, devices and tools forming 
the equipment of service cars.

                                  items

Emergency repair vehicles and appliances.
Refueling cars.
Sand and salt cars.
Snow-fighting vehicles and equipment.
Spare units for service vehicles, on hand in shop (optional).
Tow cars and appliances.
Vehicles used by officials, starters and inspectors.
1241  Shop and garage equipment.
    (a) This account shall include the cost installed (see instruction 
19) of machinery and equipment used in shops and garages when such 
machinery and equipment is not an integral part of the housing 
structure, together with specially provided foundations and settings not 
expected to outlast the machinery mounted thereon. Records shall be kept 
so as to show separately the cost of each major item of equipment.
    (b) If the carrier has shops or garages at more than one location, 
the records shall be maintained to reflect the carrier's investment at 
each location.

                                  items

Air compressors and hose, gauges and tanks.
Anvils.
Arbor presses.
Battery charging outfits.
Belts, shafts and countershafts.
Boring or reaming machines.
Car washing equipment.
Cranes and hoists (portable).
Creepers.
Drill presses.
Electric equipment.
Engines and boilers.
Forges.
Gasoline and oil pumps and portable tanks.
Greasing racks and pumps.
Grinders.
Jacks.
Lathes.
Lockers.
Machine tools.
Motor driven hand tools.
Motor starters.
Oil reclaiming machines.
Paint sprayers.
Pneumatic tools.
Storage bins and shelving (movable).
Store room equipment (except office equipment).
Stoves.
Testing apparatus.
Tire changing equipment.
Tool racks.
Vices.
Vulcanizing equipment.
Weighing devices.
Welding apparatus.
Wheel pullers.
Work benches.


[[Page 202]]


    Note A: The cost of small portable tools and implements of slight 
value or short life shall be charged to the appropriate expense account.
    Note B: The cost of cranes, hoists, and other appliances, devices, 
and tools forming the equipment of service cars and trucks shall be 
charged to account 1231, Service Cars and Equipment.
1251  Furniture and office equipment.
    (a) This account shall include the cost (see instruction 19), 
installed of furniture and appliances used in general offices, garage 
offices, stations, terminals, warehouses, and waiting rooms, when such 
equipment is not an integral part of the housing structure.
    (b) If the carrier has equipment included in this account at more 
than one location, the records shall be maintained to reflect the 
carrier's investment at each location.
    (c) If the carrier operates or owns auxiliary station facilities 
such as restaurants and news stands, the cost of equipment therein shall 
be charged to this account and carried under a special subdivision 
entitled ``Furniture and Office Equipment--Special Facilities.''

                                  items

Book cases.
Cash registers.
Chairs, stools and benches.
Clocks.
Counters.
Desks.
Equipment in rest, dining, recreation and medical rooms.
Fans, electric.
Filing cabinets.
Fire extinguisher equipment.
Floor coverings.
Heaters and lamps (movable).
Kitchen equipment.
Lighting fixtures (movable).
Lockers.
Loud speaker systems.
Newsstand equipment.
Office equipment (mechanical).
Parcel room equipment.
Partitions and railings.
Restaurant equipment.
Safes (movable).
Show cases and shelves.
Tables and counters.
Teletypewriters.
Ticket cases.
Ticket machines.
Time clocks.
Time-table racks.
Typewriters.
Vacuum cleaners.
Water coolers.

    Note: Small articles of slight value or of short life shall be 
charged to the appropriate expense accounts.
1261  Miscellaneous equipment.
    This account shall include the cost (see instruction 19) of other 
motor carrier equipment such as miscellaneous wheeled equipment used at 
warehouses, stations, terminals, and loading platforms in connection 
with handling traffic.

                                  items

Blocks and falls.
Canvas covers (tarpaulins).
Carts.
Chain hoists.
Dollies (platform).
Electric motor trucks.
Hamper trucks.
Platform trucks.
Rollers.
Scales.
Signal equipment.
Signs (electric and portable).
Skidboards.
Warehouse trucks.
Weighing devices.
1271  Improvements to leasehold property.

    (a) This account shall include, except as provided in paragraph (b) 
of this section the cost of initial improvements (including 
rearrangements, additions, and betterments) to property used for motor 
carrier operations and held under lease or through control of the 
carrier owning the property, and in existence at the date of the balance 
sheet; and, the cost of any subsequent additions to and betterments of 
such leased or controlled property but not including replacements of 
other than the carrier's own improvements. Depreciation on such 
expenditures shall be provided for in accordance with instruction 25.
    (b) When the cost of alterations to leased property used in motor 
carrier operations otherwise chargeable to this account is not in excess 
of $500.00 or the period of the lease is less than one year, the cost 
may be charged to the accounts chargeable with the cost of repairs to 
such property. (See provisions of instruction 22.)

[46 FR 45960, Sept. 16, 1981]

[[Page 203]]

1281  Undistributed property.
    (a) When a carrier purchases or sells any property constituting a 
distinct operating unit (see definition 24) or otherwise finds it 
necessary because of incomplete financial records to make a general 
readjustment of operating property records, temporary charges or credits 
to this account may be made with approval of the Commission, and the 
distribution of the amounts involved shall be made promptly to the 
appropriate accounts after authorization by the Commission.
    (b) Balances in accounts previously carried representing property 
owned as of the effective date of this system of accounts may be carried 
temporarily in this account. Journal entries distributing such balance 
to the appropriate properly accounts prescribed in this part shall be 
made and filed with the Commission not later than 1 year after the 
effective date of this system of accounts.
1291  Unfinished construction.
    This account shall include the cost of construction projects not 
ready for service at the date of the balance sheet. It shall include all 
elements of cost as set forth in instruction 19.

    Note: This account is intended to include only charges for new 
construction not involving any replacement. If, however, at the 
beginning of a job involving the replacement or retirement of any 
operating property, the accounting carrier makes full credits therefor 
to the appropriate property accounts, the cost of installing new 
property in substitution or replacement may be carried in this account 
pending completion of the work. (See also account 1890, Other Deferred 
Debits.)
1300  Carrier operating property leased to others.
    (a) This account shall include the cost (see instruction 19) of 
carrier operating property owned by the carrier but leased to others as 
distinct operating units (see definition 24) or systems for use in motor 
carrier operations, where the lessee has exclusive possession.
    (b) This account shall be subdivided so as to reflect separately the 
investment in each class of property as provided for under account 1200, 
Carrier Operating Property.
1400  Non-carrier operating property.
    This account shall include the book cost of land, structures and 
equipment owned by the carrier and used in other than motor carrier 
operations and not provided for in account 1200, Carrier Operating 
Property, and account 1300, Carrier Operating Property Leased to Others.
1450  Non-operating property.
    This account shall include the book cost of land, structures and 
equipment owned by the carrier, but not used in any of its operating 
activities.

                           Intangible Property

1500  Organization, franchises and permits.
    This account shall include the balance of the amounts included in 
accounts 1501 to 1541, inclusive.

    Note: See Instruction 2-31.

[32 FR 20280, Dec. 20, 1967, as amended at 46 FR 59546, Dec. 7, 1981]
1501  Organization.
    This account shall include fees paid to State or other governmental 
authority for the privilege of incorporation, and expenditures incident 
to organizing the corporation, partnership, or other enterprises, and 
putting it into readiness to do business.

                                  items

Fees and expenses for incorporation.
Fees and expenses for mergers or consolidations.
Office expenses incident to organizing the company.
Stock and minute books and corporate seal.

    Note A: This account shall not include any discounts upon securities 
issued or assumed; nor shall it include any costs incident to 
negotiating loans, selling bonds or other evidences of debt, or expenses 
in connection with the authorization, issuance or sale of stock. (See 
instructions 12, 13, and accounts 1900, Discounts on Capital Stock, and 
1910, Commission and Expense on Capital Stock.)
    Note B: Exclude from this account, and include in account 4620, Law 
Expenses, the cost of preparing and filing papers in connection with the 
extension of the term of incorporation unless the first organization 
costs have been written off.

[[Page 204]]

    Note C: When charges are made to this account for expenses incurred 
in mergers, consolidations, acquisitions or reorganizations, amounts 
previously included herein on the books of the retiring companies shall 
not be carried over. If such items represent part of the assets acquired 
they shall be included in account 1550. Other Intangible Property. (See 
instruction 20.)

    Note D: See Instruction 2-31.

[32 FR 20280, Dec. 20, 1967, as amended at 46 FR 59546, Dec. 7, 1981]
1511  Franchises.
    (a) This account shall include amounts actually paid to a State or 
political subdivision thereof or to other governmental authority in 
consideration of franchises, permits, consents, or certificates running 
in perpetuity or for a specified term of more than 1 year together with 
the necessary reasonable expenses incident to procuring such franchises, 
consents, or certificates of convenience and necessity.
    (b) When a franchise, permit, consent or certificate is acquired by 
assignment, the charge to this account shall not exceed the actual cost 
to the original holder thereof. Payments in excess of the cost to the 
original holder, together with any expenses incurred by the acquiring 
carrier shall be charged to account 1550, Other Intangible Property. 
(See instruction 20.)
    (c) When any franchises, permits, consents or certificates have 
expired, and are not immediately renewed, are sold or otherwise disposed 
of, credits to this account shall be made representing the amounts at 
which such items (including expenses of acquisition) are carried herein. 
Concurrent charges shall be made to account 2600, Reserve for 
Amortization--Carrier Operating Property, or to account 5100, 
Amortization of Carrier Operating Property, as appropriate. * * * 
Expenses incurred in connection with renewals shall be charged to the 
appropriate operation and maintenance expense account.
    (d) This account shall be sub-divided to reflect separately amounts 
pertaining to:
    (1) Perpetual franchises.
    (2) Fixed-term franchises.

    Note A: Regularly recurring payments made to any political 
subdivision for the right to operate within its boundaries shall be 
charged to account 5200, Operating Taxes and Licenses.

    Note B: See Instruction 2-31.

[32 FR 20280, Dec. 20, 1967, as amended at 46 FR 59546, Dec. 7, 1981]
1541  Patents.
    (a) This account shall include the cost (see instruction 19) of 
patent rights, licenses, and privileges necessary or valuable to the 
economical conduct of motor carrier operations, and which have a life of 
more than 1 year from the date they become effective.
    (b) When any right or license included herein expires or is canceled 
and is not immediately renewed, is sold, or otherwise disposed of, 
credit to this account shall be made representing the amount at which 
such right or license is included herein. Concurrent charge shall be 
made to account 2600, Reserve for Amortization--Carrier Operating 
Property, or to account 5100, Amortization of Carrier Operating 
Property, as appropriate. Expenses incurred in connection with renewals 
shall be charged to the appropriate operation and maintenance expense 
account.

    Note: See Instruction 2-31.

[32 FR 20280, Dec. 20, 1967, as amended at 46 FR 59546, Dec. 7, 1981]
1550  Other intangible property.
    (a) This account shall include any intangibles not provided for 
elsewhere, including any undistributed portion of the purchase cost of a 
transportation system or portion thereof, constituting a distinct 
operating unit (see definition 24) not includible in specific accounts 
provided for assets acquired or liabilities assumed. (See instruction 
20.)
    (b) The carrier may amortize or write off the balance carried in 
this account by credits hereto and concurrent charges to account 7500, 
Other deductions.

    Note: See Instruction 2-31.

[32 FR 20280, Dec. 20, 1967, as amended at 40 FR 53252, Nov. 17, 1975; 
46 FR 59546, Dec. 7, 1981]

[[Page 205]]

                   Investment Securities and Advances

1600  Investments and advances--Associated companies.
    (a) This account shall include the book cost (see instruction 15) of 
the carrier's investments in securities issued or assumed by associated 
companies; notes of associated companies maturing later than 1 year from 
date of issue; and the amount of advances to associated companies not 
subject to current settlement including accrued interest on such 
advances when not subject to current settlement. Exclude from this 
account securities held in special funds or as temporary cash 
investments. (See definitions 6, 8, account 1060, Temporary Cash 
Investments, and instruction 15.)
    (b) This account shall be subdivided to reflect separately:
    (1) Common stocks.
    (2) Preferred stocks.
    (3) Bonds.
    (4) Notes.
    (5) Other investments.
    (6) Advances.

    Note A: Balances in open accounts with associated companies which 
are subject to current settlement shall be included in account 1100, 
Receivables from Associated Companies.
    Note B: Securities pledged shall be shown separately from securities 
unpledged.
    Note C: Securities borrowed by the carrier and pledged shall not be 
included in this account. A memorandum record shall be kept.
1650  Other investments and advances.
    (a) This account shall include the book cost (see instruction 15) of 
the carrier's investments in securities issued or assumed by other than 
associated companies; notes of other companies and persons, maturing 
later than 1 year from date of issue; the cash surrender values of 
insurance policies carried on the lives of officers and employees when 
the carrier is beneficiary of such policies; advances to other companies 
and individuals not subject to current settlement, including any accrued 
interest on such advances when not subject to current settlement.
    (b) This account shall be subdivided to reflect separately:
    (1) Common stocks.
    (2) Preferred stocks.
    (3) Bonds.
    (4) Notes.
    (5) Other investments.
    (6) Advances.

    Note A: Balances in open accounts with other companies and 
individuals which are subject to current settlement shall be included in 
account 1120, Accounts Receivable.
    Note B: Securities pledged shall be shown separately from securities 
unpledged.
    Note C: Securities borrowed by the carrier and pledged shall not be 
included in this account. A memorandum record shall be kept.
1675  Reserve for adjustment of investments in securities.
    (a) This account shall be credited with amounts charged to account 
7500, Other Deductions, to provide a reverse for adjustments in the 
value of investment securities included in account 1600, Investments and 
Advances-Associated Companies, and account 1650, Other Investments and 
Advances, where there is a permanent impairment in the recorded values.
    (b) If reserves are maintained for anticipated losses in specific 
securities, when such securities are disposed of, this account shall be 
charged to the extent of the credit balance applicable to the particular 
securities involved. The remainder, if any, shall be charged to account 
7500, Other Deductions.
    (c) In case a general reserve for losses in unspecified security 
values is maintained, all such losses on disposition shall be charged to 
this account to the extent of the credit balance, and the remainder, if 
any, shall be charged to account 7500, Other Deductions.

[39 FR 34047, Sept. 23, 1974, as amended at 40 FR 53252, Nov. 17, 1975]
1676  Allowance for net unrealized loss on noncurrent marketable equity 
securities.
    (a) This account shall reflect the amount by which aggregate cost 
exceeds market value for the noncurrent marketable equity securities 
found in accounts 1600 and 1650. This account shall be debited or 
credited so that the balance at the balance sheet date shall reflect 
such difference. (Refer to instruction 2-15.)
    (b) This account shall not include amounts by which aggregate cost 
exceeds market value if such differences are judged to be other than 
temporary.

[[Page 206]]

(Such differences should be charged to account 1676.)

[42 FR 33300, June 30, 1977]

                              Special Funds

1701  Sinking funds.
    (a) This account shall include the amount of cash or other items 
when held by trustees or other fiscal agents in charge of sinking funds, 
or by the carrier itself when they are segregated in a distinct fund, 
for the purpose of redeeming outstanding obligations. (See instruction 
15.)

                                  items

Cash.
Securities of other companies or other assets, at cost except as 
otherwise provided herein.
Live securities, issued or assumed by the carrier, at face value. (For 
conditions under which such securities may be kept alive, see 
instruction 14.)
Amounts deposited with trustees or other fiscal agents on account of 
mortgaged property sold when held for the redemption of securities.
Securities of the carrier issued to trustees without intervening sale, 
at face value.

    (b) A separate subdivision shall be kept for each fund, the title of 
which shall designate the obligation in support of which the fund was 
created.
1751  Depreciation funds.
    This account shall include the amount of cash and the cost (see 
instruction 15) of securities of other companies and other assets which 
have been specifically set aside for the purpose of providing a fund for 
the replacement of units of depreciable property.
1781  Miscellaneous special funds.
    This account shall include the amount of cash and the cost (see 
instruction 15) of securities of other companies and other assets in 
insurance, employees' pension, savings, relief, hospital and other funds 
which have been raised and specifically set aside or invested for 
purposes not provided for elsewhere; and the face value of securities 
issued or assumed by the carrier which may be held alive in such funds 
under instruction 14. Also include in this account deposits in lieu of 
mortgaged property sold and other trust deposits, pending their refund 
when equivalent property is acquired or pending their transfer under 
mortgage provisions to account 1701 Sinking Funds. A separate 
subdivision shall be provided for each fund.

    Note: This account shall include compensating balances (see 
definition 1-44) under an agreement which legally restricts the use of 
such funds and which constitute support for long-term borrowing 
arrangements.

[32 FR 20280 Nov. 17, 1967, as amended at 41 FR 9159, Mar. 3, 1976]

                             Deferred Debits

1890  Other deferred debits.
    (a) This account shall include all debit balances in suspense 
accounts that cannot be entirely cleared and disposed of until further 
information is received; also items of a deferred nature (except items 
chargeable to account 1800, Prepayments, or account 2370, Unamortized 
Discount on Debt) which are subsequently to be amortized to the 
appropriate operation and maintenance expense or other accounts. This 
includes amounts on deposit with banks which have failed, pending 
determination of loss; amounts paid for options pending final 
disposition which are not recoverable; expenditures for plans and 
investigations made for determining the feasibility of projects under 
contemplation, pending further disposition; and expenditures for 
valuations, inventories, and appraisals made in connection with the 
contemplated purchase or sale of property. (See instruction 19.) If 
projects in connection with which such preliminary costs were incurred 
are abandoned, the expense shall be charged to account 7500, Other 
Deductions.
    (b) This account shall also include other debit items which are 
subject to amortization by order of the Commission.
    (c) This account shall also include the balances in clearing 
accounts maintained to carry temporarily the cost of operating and 
maintaining such facilities as office buildings, storehouses, etc.; and 
such overhead costs as

[[Page 207]]

it is desirable to apportion to the construction, operating, and other 
accounts involved. (See instruction 16.)

[32 FR 20280, Dec. 20, 1967, as amended at 40 FR 53252, Nov. 17, 1975; 
41 FR 52468, Nov. 30, 1976]
1895  Accumulated deferred income tax debits.
    This account shall include the noncurrent amount of deferred income 
tax debits and credits determined in accordance with instruction 2-32, 
when the balance is a net debit. A net credit balance shall be included 
in account 2460, ``Accumulated deferred income tax credits''.

[47 FR 12351, Mar. 23, 1982]

                        Miscellaneous Debit Items

1900  Discount on capital stock.
    This account shall include the discounts suffered in the sale of 
capital stock. (See instructions 12, 14.)
1910  Commission and expense on capital stock.
    This account shall include all expenses incurred in connection with 
the issuance and sale of capital stock. (See instructions 12, 14.)

                                  items

Fees and expenses in obtaining permission from regulatory bodies for the 
issuance of stock and in filing papers of notification thereunder.
Fees paid to promoters.
Listing stock on exchanges.
Preparation and distribution of prospectuses.
Preparation and issuance of certificates of stock.
Soliciting subscriptions for stock, including fees, commissions, 
advertising and printing.
Taxes paid on stock issues.
1920  Reacquired securities.
    This account shall include in subdivisions for each class, the face, 
par, or stated value of bonds, and other forms of securities which have 
been actually issued or assumed by the carrier, and reacquired and are 
neither retired nor properly included in sinking or other funds.

    Note A: The accounting for the reacquisition of securities and 
resales thereof shall be in accordance with instruction 14.
    Note B: This account shall be maintained so as to reflect separately 
securities pledged and unpledged.
    Note C: In reports to the Commission the balance in this account 
shall be deducted from the securities accounts on the liability side, 
thereby extending into the money column the amounts to reflect the 
actually outstanding securities.

[32 FR 20280, Dec. 20, 1967, as amended at 40 FR 44564, Sept. 29, 1975]
1990  Nominally issued securities.
    (a) This account shall include in subdivisions for each class, the 
face value of capital stock, bonds, and other forms of securities which 
have been nominally but not actually issued by the carrier. (See 
definitions 2, 30.)
    (b) When stock without par value is nominally issued, a memorandum 
entry shall be made to this account showing the number of shares thus 
issued.

    Note A: This account shall be maintained so as to reflect separately 
securities pledged and unpledged.
    Note B: In reports to the Commission, the balance in this account 
shall be deducted from the securities accounts on the liability side, 
thereby extending into the money column the amounts to reflect the 
actually outstanding securities.

                             liability side

                           Current Liabilities

2000  Notes payable.
    (a) This account shall include the face value of outstanding 
obligations in the form of notes, drafts, acceptances, and other similar 
evidences of indebtedness which by their terms do not run for a period 
in excess of 1 year, including the face value of notes receivable 
discounted or sold without releasing the carrier from liability as 
endorser thereon.
    (b) Subdivisions shall be maintained to show separately obligations 
maturing upon demand from obligations bearing a specified date of 
maturity.

    Note A: Notes payable to associated companies shall be included in 
account 2030, Payable to Associated Companies.
    Note B: Unmatured equipment obligations shall be included in account 
2190, Equipment Obligations and Other Debt Due Within One Year, or 
account 2300, Equipment Obligations, as appropriate.

[[Page 208]]

    Note C: 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 a long-term obligation or equity securities 
for the purpose of refinancing the short-term 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.

[32 FR 20280 Dec. 20, 1967, as amended at 41 FR 9164, Mar. 3, 1976]
2020  Matured equipment and long-term obligations.
    This account shall include the amount (including obligations for 
premiums) of equipmetnt obligations, long-term obligations and 
receivers' certificates matured and unpaid without any specific 
agreement for extension of maturity, including unpresented bonds called 
for redemption.
2030  Payables to associated companies.
    (a) This account shall include the total of amounts payable to 
associated companies (see definition 6) which are subject to current 
settlement (see definition 17), such as credit balances in open accounts 
for services rendered, material furnished, traffic or interline 
accounts, claims, rent for use of property and similar items; interest 
and dividends due to associated companies; and loans, notes and drafts 
which are payable to associated companies.
    (b) This account shall be subdivided to reflect separately:
    (1) Loans and notes payable--Associated companies.
    (2) Interest and dividends payable--Associated companies.
    (3) Accounts payable--Associated companies.

    Note A: On the balance sheet accounts payable to associated 
companies shall be set off against accounts receivable from the same 
companies.
    Note B: No amount representing dividends payable shall be included 
in this account unless they have been declared or guaranteed.
    Note C: Items which are not subject to current settlement shall be 
included in account 2200 Advances Payable--Associated Companies.
    Note D: This account shall not include obligations to associated 
companies due within one year which are expected to be refinanced on a 
long-term basis (See note C following account 2000, Notes payable).

[32 FR 20280, Dec. 20, 1967, as amended at 41 FR 9164, Mar. 3, 1976]
2050  Accounts payable.
    (a) This account shall include amounts payable to others (except 
associated companies) for materials and supplies and services received, 
including use of property, other matured rents, amounts due to public 
authorities, amounts of payable judgments, current accounts with 
officers and employees, personal injury and property damage claims, the 
carrier's liability for transportation taxes and sales taxes collected 
from customers, deductions from employees' wages for social security and 
income taxes, and other similar items.
    (b) This account shall also include the balances due to other 
carriers (except associated companies) in favor of each of which there 
is a net credit balance representing traffic or interline accounts.
    (c) This account shall be subdivided to reflect separately:
    (1) Accounts payable--Officers, stockholders, and employees.
    (2) Traffic or interline account balances.
    (3) Accounts payable--Others.

    Note: Accounts with other carriers representing traffic or interline 
accounts which contain net debit balances shall be included in account 
1120, Accounts Receivable.
2070  Wages payable.
    This account shall include the amount of wages payable or accrued 
pay rolls at the date of the balance sheet. Unclaimed wages should be 
transferred to account 2190, Other Current Liabilities.

[[Page 209]]

2080  Unredeemed tickets.
    Carriers using the ``ticket lift basis'' in recording revenues shall 
credit this account with the amounts received from the sale of mileage 
books, scrip books, tokens, strip or coupon tickets, commutation or 
other forms of tickets which are valid for transportation. This account 
shall be charged and the appropriate revenue account credited as 
tickets, tokens, or coupons are honored for transportation. This account 
shall also be charged with unused portions of tickets, tokens, or 
coupons with concurrent credits to cash or other appropriate account for 
the amount redeemed and to the appropriate revenue account for the 
portion not so redeemed or redeemable.

    Note: Carriers using the ``ticket sales basis'' in recording 
revenues shall credit account 3200, Passenger Revenue with their 
proportion received from the sale of tickets, etc.
2090  C.o.d.'s unremitted.
    This account shall be credited with amount of c.o.d.'s collected 
from consignees for shippers on express delivered.
    This account shall be charged when remittances of amounts of 
c.o.d.'s are made to shippers.

    Note: Fees for handling c.o.d.'s shall be credited to the express 
revenue account.
2100  Dividends declared.
    This account shall include the amount of dividends declared but not 
paid on any issue of capital stock of the carrier. Dividends shall be 
credited to this account as of the day upon which they become a 
liability of the carrier.

    Note: Dividends declared and payable to associated companies shall 
be included in account 2030, Payable to Associated Companies.
2120  Taxes accrued.
    (a) This account shall be credited each period with the amount of 
taxes accrued during the period, with concurrent debits to the 
appropriate accounts for tax charges. As credits to this account will 
necessarily be based upon estimates, they shall be adjusted from time to 
time during the year so that the tax charge accounts may show as nearly 
as possible, the taxes applicable to the year. Payments of taxes for 
which accruals have been made shall be debited to this account. Amounts 
representing prepayment of taxes applicable to the period subsequent to 
the date of the balance sheet shall be included in account 1800, 
Prepayments.
    (b) The records supporting the entries to this account shall be kept 
so that the carrier can furnish information as to the amount and basis 
for each tax accrual, the kinds of taxes paid, the amount of each and 
the accounts charged with the tax accruals.

    Note A: The liability for income taxes of sole proprietors or 
members of a partnership shall not be included in this account.
    Note B: The liability for social security and income taxes deducted 
from employees' wages for payment to taxing bodies shall be included in 
account 2050, Accounts Payable.
    Note C: The liability for Federal or State Taxes on transportation 
charges collectible by motor carriers shall be included in account 2050, 
Accounts Payable.
2150  Interest accrued.
    (a) This account shall include the amount of interest accrued to the 
date of the balance sheet, but not payable until after that date, on all 
indebtedness of the carrier except interest which is added to the 
principal.
    (b) When interest matures without being paid, it shall be charged to 
this account and credited to account 2030, Payables to Associated 
Companies, or account 2160, Matured Interest, as appropriate. Payments 
to trustees or other agents of the holders of bonds or other securities, 
of the interest accrued thereon, which operate under the terms of the 
securities (or of mortgages supporting such securities) as a release of 
the carrier from further liability for such interest, shall be accounted 
for in the same manner as payments of interest made directly to 
bondholders.

    Note: Interest accrued upon any judgment against the carrier shall 
be credited to the account to which such judgment stands credited.
2160  Matured interest.
    This account shall include the amount of matured and unpaid interest 
on obligations of the accounting carrier whether the cause of the 
failure to

[[Page 210]]

pay the interest is on the part of the creditor or for other reasons, 
except where such interest is added to the principal of the obligation.

    Note: Interest payable to associated companies shall be included in 
account 2030, Payables to Associated Companies.
2180  Other current liabilities.
    This account shall include all current and accrued liabilities not 
includible in any of the foregoing accounts. This includes unmatured 
rents accrued, unclaimed wages, and estimated amounts payable within one 
year covering liability for claims for injuries to persons, loss and 
damage, and similar items.
2185  Deferred income tax credits.
    This account shall include the current portion of deferred income 
tax charges and credits determined in accordance with instruction 2-32 
when the balance is a net credit. A net debit balance shall be included 
in account 1195, ``Deferred income tax debits''.

[47 FR 12351, Mar. 23, 1982]

                   Long-term Debt Due Within One Year

2190  Equipment obligations and other debt due within one year.
    This account shall include the total amount of bonds, equipment 
obligations, and other long-term debt obligations, 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 C following account 2000, Notes payable) or 
for which no sinking funds have been provided. This account shall be 
subdivided according to the different classes of debt so maturing.

[41 FR 9164, Mar. 3, 1976]

                            Advances Payable

2200  Advances payable--Associated companies.
    (a) This account shall include the amount of advances from 
associated companies including obligations due within one year which are 
expected to be refinanced on a long-term basis (See note C following 
account 2000, Notes payable), whether evidenced by notes or open 
accounts which are not subject to current settlement, including interest 
accrued thereon, when such interest is not subject to current 
settlement.
    (b) This account shall be subdivided so as to show for each 
creditor:
    (1) Notes payable.
    (2) Open accounts not subject to current settlement.
    (3) Interest accrued on amounts included in this account when not 
subject to current settlement:

    Notes: Amounts of temporary advances which are subject to current 
settlement such as charges for materials and supplies currently 
furnished, charges for repairs to equipment, etc., shall be included in 
account 2030, Payables to Associated Companies.

[32 FR 20280, Dec. 20, 1967, as amended at 41 FR 9164, Mar. 3, 1976]
2250  Other advances payable.
    (a) This account shall include the amount of advances from 
individuals and companies other than associated companies, whether 
evidenced by notes or open accounts, which are not subject to current 
settlement, including interest accrued thereon when such interest is not 
subject to current settlement.
    (b) This account shall be subdivided so as to show for each 
creditor:
    (1) Notes payable.
    (2) Open accounts not subject to current settlement.
    (3) Interest accrued on amounts included in this account when not 
subject to current settlement.
    (c) The liability for advances payable to individuals and companies, 
other than affiliated companies, maturing within one year of the close 
of the accounting period is includible in account 2190--Equipment 
Obligations and Other Debt Due Within One Year.

    Notes: Amounts of temporary advances which are subject to current 
settlement such as charges for materials and supplies currently 
furnished, charges for repairs to equipment, etc., shall be included in 
account 2050, Accounts Payable.

[[Page 211]]

                Equipment and Other Long-term Obligations

2300  Equipment obligations.
    (a) This account shall include the face value of unmatured equipment 
obligations issued by the carrier and maturing more than one year from 
the close of the accounting period or, if payable in installments, the 
face value of such installments not due within one year from such 
closing. (See account 2190--Equipment obligations and other debt due 
within one year.) This includes equipment bonds, equipment notes, 
chattel mortgages, and other obligations for which equipment is pledged 
as security or is held under a conditional sales agreement; also, the 
face value of equipment obligations issued by others, the payment of 
which has been assumed by the carrier; and of equipment obligations due 
within one year which are expected to be refinanced on a long-term basis 
(See note C following account 2000, Notes payable).
    (b) This account shall be kept so as to show the face value of 
equipment obligation (1) nominally issued, and (2) actually outstanding. 
(See definitions 3, 31.)
    (c) A separate subdivision shall be maintained for each class of 
equipment obligation and no issues shall be considered to be of the same 
class unless identical as to liability and nature of property covered.

    Note A: Equipment obligations matured and unpaid without specific 
agreement for extension as to time of payment, including unpresented 
equipment obligations called for redemption shall be included in account 
2020, Matured Equipment and Long-Term Obligations.

[32 FR 20280, Dec. 20, 1967, as amended at 41 FR 9164, Mar. 3, 1976]
2310  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 2-35.)
    (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 2190, Equipment obligations and other 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.

[42 FR 56614, Oct. 27, 1977]
2330  Bonds.
    (a) This account shall include the face value of bonds, other than 
equipment obligations issued by the carrier and maturing more than one 
year from the close of the accounting period; also, obligations due 
within one year which are expected to be refinanced on a long-term basis 
(See note C following account 2000, Notes payable); also the face value 
of such bonds issued by others, the payment of which has been assumed by 
the carrier. (See account 2190, Equipment obligations and other debt due 
within one year.)
    (b) This account shall be kept so as to show the face value of bonds 
(1) nominally issued, and (2) actually outstanding. (See definitions 3, 
31.)
    (c) A separate subdivision shall be maintained for each class and 
series of bonds, and no issue shall be considered to be of the same 
class unless identical as to liability and nature of property covered.

    Note A: Bonds matured and unpaid without specific agreement for 
extension as to time of payment, including unrepresented bonds called 
for redemption, shall be included in account 2020, Matured Equipment and 
Long-Term Obligations.

[32 FR 20280, Dec. 20, 1967, as amended at 41 FR 9164, Mar. 3, 1976]
2360  Other long-term obligations.
    (a) This account shall include all long-term obligations not 
otherwise provided for which mature 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 account 2190, 
Equipment obligations and other debt due within one year; for 
explanation of long-term refinancing, see note C following account 2000, 
Notes payable). This covers such items,

[[Page 212]]

executed or assumed, as real estate mortgages; assessments for public 
improvements; receipts outstanding for long-term obligations; and other 
obligations maturing more than one year from date of issue.
    (b) This account shall also include the face value of certificates 
of indebtedness issued upon the property by receivers in possession of 
the property acting under the orders of a court.

    Note A: Separate subdivisions shall be maintained for each class of 
obligation included herein, and records shall be maintained to show 
separately for each issue all details as to date of issue, date of 
maturity, interest dates and rates, security for obligations, etc.
    Note B: Matured obligations which are unpaid shall be included in 
account 2020, Matured Equipment and Long-Term Obligations.

[32 FR 20280, Dec. 20, 1967, as amended at 41 FR 9164, Mar. 3, 1976]
2370  Unamortized discount on debt.
    This account shall include the total of the next debit balances 
representing the excess of the discount over the premium 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 2-13.)

    Note: Issue costs related to long-term debt (debt expense) shall be 
included in account 1890, Other Deferred Debits, and amortized 
proportionately on a consistent basis to account 7300, Amortization of 
Debt Discount and Expense. (See instruction 2-13.)

[41 FR 52468, Nov. 30, 1976]
2380  Unamortized premium on debt.
    This account shall include the total of all credit balances 
representing the excess of the premium over the discount 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 2-13.)

    Note: Issue costs related to long-term debt (debt expense) shall be 
included in account 1890, Other Deferred Debits, and amortized 
proportionately on a consistent basis to account 7300, Amortization of 
Debt Discount and Expense. (See instruction 2-13.)

[41 FR 52468, Nov. 30, 1976]

                            Deferred Credits

2410  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 2-36.
    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 3800, 
``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 3800 
concurrently credited with any remaining associated amounts. (See 
instruction 2.36).

    Note: 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 2900, 
``Unearned Surplus.''

[43 FR 30560, July 17, 1978]
2450  Other deferred credits.
    (a) This account shall include the credit balances in suspense 
accounts that cannot be entirely cleared and disposed of until 
additional information is received, and other items of a deferred 
nature. (See instruction 16.)

[32 FR 20280, Dec. 20, 1967, as amended at 39 FR 33348, Sept. 17, 1974]
2460  Accumulated deferred income tax credits.
    (a) This account shall be credited with the noncurrent portions of 
deferred income tax debits and credits

[[Page 213]]

when the balance is a net credit, as determined by instruction 2-32. A 
net debit balance shall be included in account 1895, ``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 2-32).
    (c) This account shall be concurrently debited with amounts credited 
to account 3040. ``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 credits separately as of the beginning and as of 
the end of each year, (2) entries which 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 1-
41. Account 8040, ``Provision for deferred taxes'', and account 9060, 
``Provision for deferred taxes--extraordinary items'' shall concurrently 
be charged (credited) with the net effect of material timing effects. 
Other related deferred income tax balance sheet accounts are:

Account 1195, ``Deferred income tax debits.''
Account 1895, ``Accumulated deferred income tax debits.''
Account 2185, ``Deferred income tax credits.''

[47 FR 12351, Mar. 23, 1982]

                                Reserves

2500  Reserve for depreciation--Carrier operating property.
    (a) This account shall be credited with the following:
    (1) Amounts charged to account 5000, Depreciation Expense, account 
5500, Income from Lease of Carrier Property--Credit, or other accounts 
for currently accruing depreciation (see definition 22) of carrier 
operating property as provided in instruction 25.
    (2) The amount of depreciation accrued to date of transfer 
applicable to carrier operating property acquired as distinct operating 
units as provided in instruction 20.
    (3) The amount of depreciation accrued to date of transfer, 
applicable to property transferred from accounts 1400, Non-Carrier 
Operating Property, or 1450, Non-Operating Property, to accounts 1200, 
Carrier Operating Property, or 1300, Carrier Operating Property Leased 
to Others. (See instruction 23.)
    (b) Charges to this account in connection with carrier operating 
property retired shall be made in accordance with instruction 21. This 
account shall also be charged with the amount of depreciation accrued to 
date of transfer applicable to property transferred from accounts 1200, 
Carrier Operating Property, or 1300, Carrier Operating Property Leased 
to Others, to accounts 1400 or 1450.
    (c) This account shall be subdivided to reflect the balance 
applicable to each class of property as follows:

2511  Structures.
2521  Revenue Equipment.
2531  Service Cars and Equipment.
2541  Shop and Garage Equipment.
2551  Furniture and Office Equipment.
2561  Miscellaneous Equipment.
2571  Improvements to Leasehold Property.
2581  Undistributed Property.
2591  Carrier Operating Property Leased to Others.
2600  Reserve for amortization--Carrier operating property.
    (a) This account shall be credited with amounts charged to account 
5100, Amortization of Carrier Operating Property, or other appropriate 
account, for amortization of the cost of acquiring leaseholds, 
franchises, consents, privileges, patents, and other intangible property 
having a fixed term life. This account shall also be credited with 
amounts charged to account 7500, Other Deductions, as appropriate, for 
the amortization or writeoff of cost of acquiring perpetual leaseholds 
and of intangible property which does not have a fixed term life.
    (b) When any leasehold, franchise, permit, consent, privilege or 
patent expires, is sold or relinquished, or is otherwise retired from 
service, this account shall be charged with the amount previously 
credited hereto in respect of such property. The difference between the 
proceeds realized and the

[[Page 214]]

net book cost (see definition 29 and instruction 21) of the property 
retired shall be included in account 5100, Amortization of Carrier 
Operating Property.
    (c) Records shall be maintained so as to show separatively the 
balances applicable to each item of intangible property which is being 
amortized.
    (d) This account shall be credited with such amounts as are 
necessary to reflect, as of the effective date of this system of 
accounts, the expired portion of the life of franchises, permits, 
consents, patent rights, leaseholds, easements, rights-of-way, other 
interest in land, or other intangible property which has a fixed term 
life, the cost of which is included in operating property accounts 1200 
and 1300 and intangible property accounts 1500 and 1550. To the extent 
that provision has not previously been made the amounts credited to this 
reserve shall be concurrently debited to account 2946, Other debits to 
Surplus.

[32 FR 20280, Dec. 20, 1967, as amended at 40 FR 53252, Nov. 17, 1975]
2610  Reserve for depreciation and amortization--Other property.
    This account shall include amounts provided for depreciation and 
amortization of properties carried in accounts 1400, Non-Carrier 
Operating Property, and 1450, Non-Operating Property.
2650  Reserve for uncollectible accounts.
    This account shall be credited each period with amounts reserved for 
receivables which may become uncollectible.

    Note A: Charges applicable to receivables for carrier operating 
revenues shall be included in account 4680. Uncollectible Revenues.
    Note B: Charges applicable to other than carrier operating revenues 
shall be included in account 7500, Other Deductions.
    Note C: Charges for items not applicable to motor carrier operations 
shall be included in accounts 6000, Net Income from Non-Carrier 
Operations, or 6100, Net Income from Non-Operating Property, as 
appropriate.
2680  Injuries, loss and damage reserves.
    (a) This account shall be credited with amounts charged to accounts 
4530, Injuries and damages, 4546, Workmen's Compensation--Provision for 
Claims. Baggage and Express Loss and Damage, or other appropriate 
accounts to provide a reserve against claims for deaths of or injuries 
to employees and others; for damages to property not owned or held under 
lease by the carrier; and for loss, destruction, damage, or delays to 
property intrusted to the carrier for transportation or storage, which 
are not covered by outside insurance. (See instruction 27.) A schedule 
of risks covered by this reserve shall be maintained in sufficient 
detail to indicate the character of the risks covered and the rates 
used.
    (b) This account shall be charged with claims payable for injuries 
and damages when the risk is specifically provided for in the schedule 
applicable to this account.
    (c) When liability for any injury or damage is admitted by the 
carrier either voluntarily or because of the decision of a court or 
other lawful authority such as a workmen's compensation board, 
industrial commission, etc., the amount shall be charged to this 
account. The amount of such a liability shall be credited to account 
2030, Payable to Associated Companies, account 2050, Accounts Payable, 
or account 2450, Other Deferred Credits, as appropriate, until paid or 
liquidated.
    (d) This account shall be subdivided to reflect:
    (1) Reserve for personal injuries and property damage.
    (2) Reserve for baggage and express loss and damage.

    Note: The accounting for repairs and replacements of property owned, 
or leased from others, shall be as provided in paragraph (b) of account 
2660, Insurance Reserves.

    (e) At the close of the accounting period the estimated amounts 
payable within one year covering liability for claims for injuries to 
persons, loss and damage, and similar items shall be transferred for 
purposes of the balance

[[Page 215]]

sheet statement to account 2180--Other Current Liabilities.

[32 FR 20280, Dec. 20, 1967, as amended at 41 FR 32598, Aug. 4, 1976]
2690  Other reserves.
    (a) This account shall include amounts reserved by the carrier for 
purposes which are not provided for in any of the preceding reserves. 
There shall be reported hereunder such accounts as sinking fund 
reserves, contingency reserves and other reserves created by charges to 
income or surplus.
    (b) This account shall be maintained in such manner as to show the 
amount of each separate reserve and the nature and the amounts of the 
debits and credits thereto.

                              Capital Stock

2700  Preferred capital stock.
2710  Common capital stock.
    (a) These accounts shall include the par value of stocks with par 
value; the stated value of non-par stocks having a stated value; and the 
cash value of the consideration received, including assessments, for 
non-par stocks without stated value, which have been nominally or 
actually issued.
    (b) Separate accounts shall be provided for each class of stock, and 
the title of each account shall clearly identify the class of stock 
covered. Issues of stock shall not be considered as of the same class 
unless identical in all provisions, nor shall there be carried any 
undivided item in respect of more than one class of stock.
    (c) When stock is issued for cash, that fact shall be stated; if for 
any consideration other than cash, the person to whom it is issued shall 
be designated and the consideration for which it is issued shall be 
described with sufficient particularity to identify it. If such issuance 
is to the treasurer or other agent of the corporation for purpose of 
sale, that fact and the name of such agent shall be shown; and such 
agent shall show like details concerning the consideration realized 
therefor in his account of the disposition thereof, which when accepted 
by the corporation, shall be preserved as a corporate record.
    (d) When capital stock is retired and canceled, these accounts shall 
be charged with the amount at which such stock is carried in these 
accounts.

    Note A: For each class of stock the records shall show the number of 
shares nominally issued, actually outstanding, and nominally 
outstanding. (See definitions 3, 31.) When non-par stock (without stated 
value) is nominally issued a memorandum entry shall be made showing only 
the number of shares so issued.
    Note B: When non-par stock is issued in exchange for par stock, or 
non-par stock with stated value, amounts included in account 2720, 
Premiums and Assessments on Capital Stock, for the retired stock, shall 
be treated as part of the consideration received for non-par stock.
    Note C: No entries recording changes in the par value of stocks with 
par value; the stated value of non-par stocks having a stated value; or 
the recorded value of non-par stocks without stated value shall be made 
in any account for capital stock without approval of the Commission.
2720  Premiums and assessments on capital stock.
    (a) This account shall include the excess of the actual cash value 
(at the time of sale of the stock) of the consideration received 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) A separate subdivision shall be maintained for premiums on each 
class and series of stock.
    (c) When capital stock is retired and canceled, the amount in this 
account with respect to the shares retired and canceled shall be debited 
hereto in accordance with instruction 14.
2730  Capital stock subscribed.
    This account shall include the amount of legally enforceable 
subscriptions to capital stock of the carrier. It shall be credited with 
the par or stated value, or with the subscription price in the case of 
stock without par or stated value, exclusive of accrued dividends, if 
any. Concurrently a debit shall be made to account 1140, Subscribers to 
Capital Stock, for the agreed purchase price and any discount or premium

[[Page 216]]

debited or credited to the appropriate discount or premium account. When 
properly executed stock certificates have been issued representing the 
stocks subscribed, this account shall be debited and the appropriate 
capital stock account credited with the par or stated value (or the 
consideration received in the case of non-par stock without a stated 
value) of the stock.

                          Non-Corporate Capital

2800  Sole proprietorship capital.
    This account shall include the investment in an unincorporated 
carrier by the proprietor thereof and shall be charged with all 
withdrawals from the business by its proprietor. At the end of each 
calendar year the net income for the year as developed in the income 
account shall be transferred to this account. There shall also be 
entered in this account such items as in corporate organizations are 
handled through earned surplus accounts 2930 to 2946. (See optional 
accounting procedure provided in note B, hereunder.)

    Note A: Amounts payable to the proprietor as fair and reasonable 
compensation for services performed, shall be charged to the appropriate 
operation and maintenance expense or other accounts.
    Note B: This account may be restricted to the amount considered by 
the proprietor to be the permanent investment in the business, subject 
to change only by additional investment by the proprietor of the 
withdrawals of portions thereof not representing net income. When this 
option is taken the surplus accounts shall be maintained and entries 
thereto shall be made in accordance with the texts thereof.
2810  Partnership capital.
    This account shall be credited, where the business is conducted by 
an unincorporated firm, co-partnership or under any style other than 
that of an incorporated company or sole proprietorship, with the 
respective amounts paid into the business by the partners therein, and 
shall be charged with all withdrawals from the business by each partner. 
At the end of each calendar year the net income for the year as 
developed in the income account shall be transferred to this account. 
There shall also be entered in this account such items as in corporate 
organizations are handled through earned surplus accounts 2930 to 2946. 
(See optional accounting procedure provided in note C hereunder.)

    Note A: Amounts payable to the partners as fair and reasonable 
compensation for services performed, shall be charged to the appropriate 
operation and maintenance expense or other accounts.
    Note B: Separate accounts shall be kept to show the net equity of 
each member of the co-partnership and the transactions affecting the 
interest of each such partner. The total of the balances in such 
accounts shall be shown as one amount in the balance sheet.
    Note C: This account may be restricted to the amount considered by 
the members of the co-partnership to be their permanent investment in 
the business, subject to change only by additional investments by the 
copartners or the withdrawals of portions thereof not representing net 
income. When this option is taken the surplus accounts shall be 
maintained and entries thereto shall be made in accordance with the 
texts thereof.

                         Unappropriated Surplus

2900  Unearned surplus.
    (a) This account shall include all surplus not classified in this 
part as earned surplus. It shall include such items as surplus arising 
from the donations by stockholders of the carrier's capital stock; 
surplus recorded at reorganization or in connection with 
recapitalization; net credits resulting from reacquisition or resales of 
carrier's capital stock (see instruction 14); amortization of discount 
and expenses on capital stock (see instruction 12); and from a reduction 
of the par or stated value of the carrier's capital stock where allowed 
by statute.
    (b) This account shall be subdivided into accounts to show each 
source of unearned surplus (including the cumulative amounts 
representing the cost of nondepreciable property received from 
government authorities, in accordance with the provisions of instruction 
2-35).
    (c) No entry shall be made in this account to create unearned 
surplus arising out of the reevaluation of carrier operating property 
except upon written order of the Commission.

[43 FR 30560, July 17, 1978]

[[Page 217]]

2930  Earned surplus.
    (a) This account shall include the balance of the amounts included 
in accounts 2932 to 2946, inclusive, either debit or credit, of 
unappropriated surplus arising from earnings. It shall not include 
surplus property includible under accounts 2800, Sole Proprietorship 
Capital, 2810, Partnership Capital, or 2900, Unearned Surplus.
    (b) The balance of all earned surplus accounts (2932 to 2946, 
inclusive) shall be closed to this account at the end of each calendar 
year.
2931  Prior period adjustments to beginning retained surplus account.
    This account shall include adjustments after giving income tax 
effect, in accordance with the text of instructions 2-7, to the balance 
in the retained surplus account at the beginning of the calendar year, 
upon approval by the Commission.

[40 FR 53252, Nov. 17, 1975]
2932  Credit balance transferred from income account.
    This account shall include the net credit balance brought forward 
from the income account for the current calendar year.
2933  Other credits to surplus.
    (a) 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 Commission.
    (b) The records supporting entries in this account shall be so 
maintained that an analysis thereof may be readily made available.
2942  Debit balance transferred from income account.
    This account shall include the net debit balance brought forward 
from the income account for the current calendar year.
2943  Dividend appropriations.
    (a) This account shall include amounts declared as dividends on 
capital stock actually outstanding.
    (b) This account shall be subdivided to show separately the 
dividends on each class of stock. If a dividend is not payable in cash, 
the consideration shall be described in the entry with sufficient 
particularity to identify it.

    Note: Dividend charges shall be restricted to actually outstanding 
stock and this account shall not include charges for dividends on 
capital stock issued by the carrier and owned by it.
2944  Appropriations to reserves.
    This account shall include appropriations from surplus for sinking 
fund and other reserves and allotments of surplus, or transfers of 
definite amounts from surplus into sinking fund and other reserves under 
the terms of mortgages, deeds of trust, or under contracts, and such 
other appropriations of surplus to be set aside in special reserve 
accounts as the accounting carrier may make.
2945  Other appropriations.
    This account shall include appropriations of surplus not includible 
elsewhere.
2946  Other debits to surplus.
    (a) This account shall include (1) charges which reduce or write off 
discount on capital stock issued by the company, and (2) in pooling of 
equity interests situations, the excess of the value of the surviving 
company's capital stock over the aggregate total of the capital stock of 
the separate companies before such merger or consolidation, but only to 
the extent that unearned surplus is not available for such purposes. 
(See instructions 21(d) and 20(a)(2)(ii).)
    (b) This account shall 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 Commission.
    (c) The records supporting entries in this account shall be so 
maintained that an analysis thereof may be readily made available.
2946.5  Net unrealized loss on noncurrent marketable equity securities.
    This account shall include the accumulated changes in account 1676 
to the extent that these changes represent a

[[Page 218]]

net unrealized loss (aggregate cost exceeds market value).

[42 FR 33301, June 30, 1977]
2947  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 includible 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 A: The accounting for the reacquisition of capital stock and 
resale thereof shall be in accordance with instruction 2-14, paragraph 
(a).

[40 FR 44564, Sept. 29, 1975]
2999  Form for balance sheet statement.
    (See instructions 17, 18.)

                                                                        
                                                                        
                                                                        
                               asset side                               
                                                                        
Current assets:                                                         
  1000  Cash............................................  ......       $
  1020  Working Funds...................................  ......  ......
  1040  Special Deposits................................  ......  ......
  1060  Temporary Cash Investments......................  ......  ......
    (a) Pledged.........................................       $  ......
    (b) Unpledged.......................................       $  ......
  1080  Notes Receivable................................       $  ......
  1100  Receivables from Associated Companies...........  ......  ......
  1120  Accounts Receivable.............................  ......  ......
    Less: Reserve for Uncollectible Accounts............  ......  ......
  1140  Subscribers to Capital Stock....................  ......  ......
  1160  Interest and Dividends receivable...............  ......  ......
  1170  Prepayments.....................................  ......  ......
  1180  Materials and Supplies..........................  ......  ......
  1190  Other Current Assets............................  ......  ......
  1195  Deferred income credits.........................  ......  ......
                                                                 -------
    Total Current Assets................................  ......  ......
Tangible Property:                                                      
  1200  Carrier Operating Property......................  ......  ......
    Less: Reserve for Depreciation and Amortization.....  ......  ......
  1300  Carrier Operating Property Leased to Others.....  ......  ......
    Less: Reserve for Depreciation and Amortization.....  ......  ......
  1400  Non-Carrier Operating Property..................  ......  ......
    Less: Reserve for Depreciation and Amortization.....  ......  ......
                                                         ---------------
  1450  Non-Operating Property..........................       $  ......
    Less: Reserve for Depreciation and Amortization.....  ......       $
                                                                        
    Total Tangible Property.............................  ......  ......
Intangible Property:                                                    
  1500  Organization, Franchises and Permits............       $  ......
    Less: Reserve for Amortization......................  ......       $
                                                         ---------      
  1550  Other Intangible Property.......................  ......  ......
    Less: Reserve for Amortization......................  ......  ......
                                                         ---------------
    Total Intangible Property...........................  ......  ......
Investment Securities and Advances:                                     
  1600  Investments and Advances; Associated Companies..  ......       $
    (a) Pledged.........................................       $  ......
    (b) Unpledged.......................................  ......  ......
                                                         --------       
  1650  Other Investments and Advances..................  ......       $
    (a) Pledged.........................................  ......  ......
    (b) Unpledged.......................................  ......  ......
    Less:                                                               
    (a) Reserve for adjustment of investments in                        
     securities.........................................  ......  ......
    (b) Allowance for net unrealized loss on noncurrent                 
     marketable equity securities.......................  ......  ......
                                                         --------       
      Total investment securities and advances..........  ......  ......
Special Funds:                                                          
  1701  Sinking Funds...................................  ......  ......
  1751  Depreciation Funds..............................  ......  ......
  1781  Miscellaneous Special Funds.....................  ......  ......
                                                                 -------
    Total Special Funds.................................  ......  ......
Deferred debits:                                                        
  1890  Other Deferred Debits...........................  ......  ......
  1895  Accumulated deferred income tax charges.........  ......  ......
                                                                 -------
    Total Deferred Debits...............................  ......  ......
Miscellaneous Debit Items:                                              
  1900  Discount on Capital Stock.......................  ......  ......
  1910  Commission and Expense on Capital Stock.........  ......  ......
                                                                 -------
    Total Miscellaneous Debits..........................  ......  ......
                                                                 -------
    Total Assets........................................  ......  ......
                                                                 -------
    Contingent Assets (not included above)..............       $  ......
                                                                        
                             liability side                             
                                                                        
Current Liabilities:                                                    
  2000  Notes Payable...................................  ......       $
  2020  Matured Equipment and Long-Term Obligations.....  ......  ......
  2030  Payables to Associated Companies................  ......  ......
  2050  Accounts Payable................................  ......  ......
  2070  Wages Payable...................................  ......  ......
  2080  Unredeemed Tickets..............................  ......  ......
  2090  C.O.D.'s Unremitted.............................  ......  ......
  2100  Dividends Declared..............................  ......  ......
  2120  Taxes Accrued...................................  ......  ......
  2150  Interest Accrued................................  ......       $
  2160  Matured Interest................................  ......  ......
  2180  Other Current Liabilities.......................  ......  ......
  2185  Deferred income credits.........................  ......  ......
                                                                 -------

[[Page 219]]

                                                                        
    Total Current Liabilities (exclusive of long-term                   
     debt due within one year)..........................  ......  ......
Long-term debt due within one year:                                     
  2190  Equipment obligations and other debt............  ......  ......
Advances Payable:                                                       
  2200  Advances Payable; Associated Companies..........  ......  ......
  2250  Other Advances Payable..........................  ......  ......
                                                                 -------
    Total Advances Payable..............................  ......  ......
Equipment and Other Long-Term Obligations:                              
  2300  Equipment Obligations...........................       $  ......
    Less: Reacquired and Nominally Issued...............  ......  ......
  2310  Capitalized Lease Obligations...................  ......  ......
  2330  Bonds...........................................  ......  ......
    Less: Reacquired and Nominally Issued...............  ......  ......
  2360  Other Long-Term Obligations.....................       $  ......
    Less: Reacquired and Nominally Issued...............  ......       $
  2410  Deferred revenues--transfers from government                    
   authorities..........................................  ......  ......
  2370  Unamortized Discount on Debt....................  ......  ......
  2380  Unamortized Premium on Debt.....................  ......  ......
                                                         ---------------
    Total Equipment and Other Long-term Obligations                     
     (net)..............................................  ......  ......
Deferred Credits:                                                       
  2400  Unamortized Premium on Debt.....................  ......       $
  2450  Other Deferred Credits..........................  ......  ......
  2460  Accumulated deferred income tax credits.........  ......  ......
                                                                 -------
    Total Deferred Credits..............................  ......  ......
Reserves:                                                               
  2680  Injuries, Loss and Damage Reserves..............  ......  ......
  2690  Other Reserves..................................  ......  ......
                                                                 -------
    Total Reserves......................................  ......  ......
Capital Stock:                                                          
  2700  Preferred capital stock.........................  ......       $
    Less: Nominally issued..............................  ......  ......
  2710  Common capital stock............................  ......       $
    Less: Nominally issued..............................  ......  ......
                                                                 -------
  2720  Premiums and Assessments on Capital Stock.......  ......  ......
  2730  Capital Stock Subscribed........................  ......  ......
                                                                 -------
    Total Capital Stock.................................  ......  ......
Non-Corporate Capital:                                                  
  2800  Sole Proprietorship Capital.....................  ......  ......
  2810  Partnership Capital.............................  ......  ......
                                                                 -------
    Total Non-Corporate Capital.........................  ......  ......
Unappropriated Surplus:                                                 
  2900  Unearned Surplus................................  ......       $
  2930  Earned Surplus (Deficit in red).................  ......  ......
                                                                 -------
    Total Unappropriated Surplus........................  ......  ......
                                                                 -------
    Total Liabilities...................................  ......  ......
2946.5  Net unrealized loss on noncurrent marketable                    
 equity securities                                        ......      ()
  2957  Treasury Stock..................................  ......      ()
    Total unappropriate surplus.........................  ......  ......
    Total liabilities and equity........................  ......  ......
    Contingent liabiliies (not included above)..........       $  ......
                                                                        


[32 FR 20280, Dec. 20, 1967, as amended at 37 FR 25846, Dec. 5, 1972; 39 
FR 33349, Sept. 17, 1974; 39 FR 34047, Sept. 23, 1974; 40 FR 44564, 
Sept. 29, 1975; 41 FR 32598, Aug. 4, 1976; 41 FR 52468, Nov. 30, 1976; 
42 FR 33301, June 30, 1977; 42 FR 56613, Oct. 27, 1977; 43 FR 30560, 
July 17, 1978]

                             Income Accounts

                            (ordinary items)

                           Operating Revenues

3000  Operating revenues (exclusive of transfers from government 
authorities).
    This account shall include the total operating revenues as provided 
in the primary operating revenue accounts, derived by the carrier from 
its motor carrier operations during the period covered by the income 
account.
    Note: Transfers from government authorities shall be accounted for 
in accordance with the provisions of instruction 2-36.

[43 FR 30559, July 17, 1978]
3200  Passenger revenue.
    (a) This account shall include all revenue accrued from the 
transportation of passengers over regularly operated routes. This 
includes:
    (1) Revenue upon the basis of local tariff fares.
    (2) The carrier's proportion of revenue from joint tariff fares.
    (b) This account shall be charged with:
    (1) Redemptions of unused or partially used local passenger tickets.
    (2) The carrier's proportion of redemption of unused and partially 
used through or interline passenger tickets.
    (3) The carrier's proportion of overcharges resulting from the 
application, in error, of fares in excess of tariffs.
    (4) The carrier's proportion of refunds of tickets issued in lieu of 
passes under regulations of the Commission and section 217(b) of Part II 
of the Interstate Commerce Act.

    Note A: The foregoing is based upon the practice of accounting on a 
``ticket sales basis'' and not on a ``ticket lift basis.'' Carriers 
using the ``ticket lift basis'' shall credit this account with the 
revenue earned from the transportation of passengers as determined by 
the ``ticket lift'' concurrently charging account 2080, Unredeemed 
Tickets.

[[Page 220]]

    Note B: By ``regularly operated routes'' is meant routes or portions 
thereof over which uniform service is maintained at intervals of 1 week 
or less.
    Note C: Revenue from transportation of passengers on special busses 
at fares based on special rates shall be credited to account 3210, 
Special Bus Revenue.
    Note D: Payments to other carriers for transportation of passengers, 
their baggage and personal effects to complete any portion of the 
reporting carrier's haul, shall be charged to account 4250, Purchased 
Transportation, or account 4370, Purchased Collection and Delivery, as 
appropriate.
    Note E: Divisions of tariff rates due other carriers shall be 
included in the appropriate accounts payable account.
    Note F: Revenue derived from sleeping accommodations furnished 
passengers shall be included in account 3900, Other Operating Revenue.
3210  Special bus revenue.
    (a) This account shall include the amounts earned by the carrier 
from busses chartered for special passenger and other special contract 
service.
    (b) This account shall be charged with the amounts of all special 
bus refunds.
3220  Baggage revenue.
    (a) This account shall include the revenues earned from the 
transportation of baggage in excess of free authorized allowances and 
for the transportation of packages, articles, dogs, etc., as baggage.
    (b) This account shall be charged with the amounts of all baggage 
refunds.
3300  Mail revenue.
    (a) This account shall include revenue earned from the 
transportation of United States and other mails, and from bonuses for 
special mail transportation.
    (b) This account shall be charged with fines and penalties imposed 
by the Government in connection with the transportation of mail which 
are not collectible from agents or employees.
3400  Express revenue.
    (a) This account shall include the amounts earned by the carrier 
from the transportation of express matter (including milk and cream) at 
specified tariff rates and the fees for handling express c.o.d.'s.
    (b) This account shall be charged with:
    (1) The carrier's proportion of overcharges resulting from use of 
erroneous rates, weights, classifications or computations.
    (2) Uncollected earnings on express destroyed in transit and on 
short and lost express.
3500  Newspaper revenue.
    (a) This account shall include the revenue earned from the 
transportation of newspapers at specified tariff rates.
    (b) This account shall be charged with the amounts of all refunds on 
newspaper revenue billing resulting from overcharges, etc.
3600  Miscellaneous station revenue.
    This account shall include the revenue earned by the carrier from:
    (a) Weighing, vending and other automatic machines located at 
stations.
    (b) Advertising cards at stations.
    (c) Companies or others for the privilege of operating newsstands, 
lunch counters, soda fountains, etc., at stations, and selling papers, 
periodicals, pillows or pillow service, tobacco, etc., on busses.
    (d) Telephone companies for the privilege of installing and 
operating commercial telephones and coinbox telephones at stations.
    (e) Taxicab companies for the privilege of operating taxicab stands 
at stations.
    (f) Operation of parcel rooms.
    (g) Parcel room privileges in stations and terminals of the carrier 
and leased to others.
    (h) Storage of baggage.
    (i) Operation of restaurants, cafes, lunch rooms, lunch counters, 
cafeterias and soda fountains.
    (j) Operation of all other miscellaneous station concessions, not 
provided for elsewhere.
3700  Operating revenues--transfers from government authorities for 
current operations.
    This account shall include amounts received or receivable from 
Federal, State, or municipal authorities which

[[Page 221]]

are specifically designated to offset operating expenses, or which may 
be applied at the discretion of the carrier to operating expenses and/or 
carrier operating property.
    This account shall include amounts received from government 
authorities to offset operating costs sustained on specific routes, such 
as payments by regional transit authorities in connection with specified 
commuter 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 
agencies in the form of, or designated for the acquisition, addition to, 
or improvement of carrier operating property. (See instruction 2-36.)

[43 FR 30560, July 17, 1978]
3800  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 2-36, and account 2410, ``Deferred 
Revenues--Transfers from Government Authorities.'')

[43 FR 30560, July 17, 1978]
3900  Other operating revenue.
    This account shall include revenues not provided for in accounts 
3200 to 3600, inclusive, derived from the operation of property, the 
investment in which is included in account 1200, Carrier Operating 
Property, including amounts received from sleeping accommodations on 
busses, snowplow work and revenue from display of advertising in and on 
revenue automotive equipment, and the excess of guaranteed route revenue 
over tariff revenues.

                   Operation and Maintenance Expenses

4000  Operation and maintenance expenses.
    This account shall include the total of operation and maintenance 
expenses, as provided in the primary accounts, incurred by the carrier 
in its motor carrier operations during the period covered by the income 
account.
4100  Equipment maintenance and garage expenses.
    This account shall include the total of amounts included in accounts 
4110 to 4196, inclusive.
4110  Supervision of shop and garage.
    This account shall include the pay and expenses (including cost of 
operating automobiles) of officials and employees engaged in supervising 
and directing the repairs to revenue automotive equipment and shop and 
garage property used in providing motor-carrier service, including 
superintendents, foremen (except working foremen), inspectors, shop and 
garage clerks, and time keepers. (See instruction 28.)
4121  Repairs to shop and garage equipment.
    This account shall include the cost of repairs (see instructions 26, 
28) to tools, equipment and permanently located machinery used in shops 
and garages. (For list of equipment, see account 1241, Shop and Garage 
Equipment.)

    Note A: The cost of repairs to portable tools shall be included in 
account 4132, Other Shop and Garage Expenses.
    Note B: Amounts recovered from insurance companies or others and 
losses provided for in account 2660, Insurance Reserves, for damages to 
shop and garage equipment shall be credited to this account in such 
manner as to be readily identifiable.
4122  Operation and maintenance of service equipment.
    This account shall include the cost of labor, fuel, tires and 
supplies for the operation and the cost of repairs to service equipment, 
such as trouble cars and wagons, wreckers, repair trucks,

[[Page 222]]

snowplows, sweepers, scrapers, refueling cars, automobiles, motorcycles, 
or other equipment included under account 1231, Service Cars and 
Equipment. (See instructions 26, 28.)

    Note A: The pay of employees and expenses incurred in operating 
snowplows, sand, and salt cars, and other service equipment used in 
cleaning and safeguarding roads, shall be charged to account 4261, Road 
Expense.
    Note B: Amounts recovered from insurance companies or others and 
losses provided for in account 2660, Insurance Reserves, for damage to 
service equipment shall be credited to this account in such manner as to 
be readily identifiable.
    Note C: When any service equipment is used in a particular operation 
other than maintenance, such as automobiles or motorcycles used in 
connection with advertising, the cost of operation of such service 
equipment shall be charged to the account provided for expenses of that 
character.
4128  Repairs to shop and garage buildings and grounds.
    This account shall include the cost of repairs to shop and garage 
structures used in motor carrier operations such as shops, garages, and 
service stations, together with fixtures, grounds and approaches. (See 
instructions 26, 28.)

                                  items

Changing location of partitions. (See also note A hereunder.)
Maintaining public improvements, including assessments covering such 
work.
Maintaining yards and grounds, including fences, shrubbery, driveways, 
sidewalks, platforms, and sewers.
Minor improvements to leased buildings and grounds. (See also 
instruction 22.)
Repainting buildings, including redecorating interiors of buildings.
Repairing building machinery, fixtures, appurtenances, and appliances, 
such as elevators, plumbing, and equipment for heating, lighting, and 
ventilating.
Repairing rented buildings and grounds.
Replacing and repairing awnings, screens, window shades and ventilators, 
storm doors, storm windows, movable partitions, and similar movable 
minor items of buildings. (See also note A hereunder.)
Replacing minor items of buildings including labor and material used and 
the cost of removal and recovery of the items retired less salvage 
recovered. (See also instruction 21, and note A hereunder.)
Restoring condition of buildings or grounds damaged or otherwise altered 
in the course of repairs, replacements, additions, or betterments. (See 
also account 2660, Insurance Reserves.)

    Note A: The cost of any substantial increase or decrease in 
partitions shall be charged or credited, as appropriate, to account 
1211--Structures. When partitions of a movable type are replaced by 
partitions of a permanent type or vice versa, the costs involved shall 
be accounted for through the operating property and the depreciation 
reserve accounts.
    Note B: The cost of initial improvements (including repairs and 
rearrangements in the preparation for service of purchased buildings or 
grounds) shall be charged to account 1201, Land and Land Rights, or 
account 1211, Structures, as appropriate. The accounting for 
expenditures on property leased from others shall be as provided in 
instruction 22.
    Note C: Amounts recovered from insurance companies or others and 
losses provided for in account 2660--Insurance Reserves, for damages to 
buildings and grounds shall be credited to this account in such manner 
as to be readily identifiable.
4131  Light, heat, power, and water for shops and garages.
    This account shall include the cost of light, heat, power and water 
used at each shop and garage; the cost of fuel used for heating, 
lighting or power; also include pay and expenses of employees engaged in 
producing light, heat, and power. (See instruction 28.)

                                  items

Fuel for heating, lighting, or power used in shops and garages.
Heat purchased for shops and garages.
Light for shops and garages.
Power for battery charging or for other uses than repairs.
Wages and expenses of employees engaged in producing light, heat, and 
power for shops and garages.
Water.
4132  Other shop and garage expenses.
    This account shall include the cost of miscellaneous shop and garage 
expenses, including the replacement cost (see instruction 21) of small 
tools, such as reamers, taps, files, hammers and all small tools of like 
nature; labor and material used in the repair of small tools; pay of 
employees engaged in receiving, issuing and distributing parts and 
supplies; pay of gas and oil attendants; transportation, loading and 
unloading charges on parts and supplies, handled in shops and garages, 
when not specifically assignable to such parts

[[Page 223]]

and supplies; and other miscellaneous labor and expenses not provided 
for elsewhere. (See instruction 16.)

                                  items

Ice and other refrigerants.
Lubricants for shop and garage machinery.
Portable hand tools of short life.
Small tools used in repairs or for general shop and garage purposes.
Snow and dust removal--shop and garage yards.
Supplies used in cleaning and for general shop and garage purposes, such 
as lamps, grease, oil, waste, brushes, brooms, etc.
Other expenses in shops and garages.
4140  Repairs to revenue equipment.
    This account shall include cost of repairs to revenue automotive 
equipment used in transportation service. (For list of equipment see 
account 1221, Revenue Equipment.) This account shall be maintained so as 
to reflect separately the cost of repairs to revenue automotive 
equipment involved in accidents. (See instructions 26, 28.)

    Note A: An accident for the purpose of this account is damage caused 
through the collision of a vehicle with either a stationary or moving 
object, or through tire failure or fire.
    Note B: The accounting for expenditures on motor vehicles leased 
from others shall be as provided in instruction 22.
    Note C: Amounts recovered from insurance companies or others and 
losses provided for in account 2660, Insurance Reserves, for repairs to 
motor vehicles shall be credited to this account in such manner as to be 
readily identifiable.
    Note D: The cost of repairs to equipment used in collection and 
delivery service if determinable shall be included in account 4360, 
Collection and Delivery.
4150  Servicing of revenue equipment.
    This account shall include the pay of employees (see instruction 28) 
engaged in preparing revenue automotive equipment for service and of 
garage and shop employees other than those engaged in making repairs; 
the cost of supplies used and miscellaneous expenses incurred in 
washing, cleaning, greasing, and otherwise keeping equipment ready for 
service; and amounts paid to public garages for storage or servicing 
(including towing) of revenue automotive equipment.

                                  items

Garage employees:
    Cleaners.
    Oilers and greasers.
    Washers.
Garage expenses:
    Battery charging (labor and distilled water).
Cleaning supplies, such as soap, sponges, brooms, brushes, cloths, 
rubber clothing, etc.
Graphite.
Grease.
Public garage storage charges.
Public garage servicing charges, including washing, greasing, cleaning, 
etc., but not repairs.
Washing vehicles.
4160  Tires and tubes--Revenue equipment.
    (a) This account shall include the cost of labor and material used 
in repairing and renewing (setting up or mounting) tires on revenue 
automotive equipment, including shoes, inner tubes, valves, flaps, and 
caps. (See instruction 28.)
    (b) The entire cost of tires and tubes for revenue automotive 
equipment purchased outright may be charged to this account at the time 
vehicles are purchased or charged to account 1170, Prepayments, and a 
prorated portion charged to this account for each period based on 
mileage or other equitable basis. If the latter method is used, 
adjustments of over or under charges at the time of replacement shall be 
made through this account.
    (c) Credit to this account any revenues derived from the sale of 
used tires and tubes and any adjustments on defective tires and tubes, 
the cost of which has previously been debited hereto.
    (d) When the carrier contracts to use tires at a flat sum per period 
or on a basis of miles run or upon some similar basis, the charges for 
such tire service, including the cost of abused tires, shall be included 
each period in this account.

    Note A: The cost of tires and tubes used by service cars shall be 
charged to account 4122, Operation and Maintenance of Service Equipment.
    Note B: The cost of tires and tubes for collection and delivery 
equipment if determinable shall be included in account 4360, Collection 
and Delivery.

[32 FR 20280, Dec. 20, 1967, as amended at 37 FR 25846, Dec. 5, 1972]

[[Page 224]]

4191  Joint garage expenses--Debit.
    This account shall include the carrier's proportion of costs 
incurred by others in maintaining and operating joint shop and garage 
equipment and facilities, including overhead costs, except items 
chargeable to account 5340, Joint Facility Rents--Debit. (See definition 
25, and instruction 29.)
4196  Joint garage expense--Credit.
    This account shall include the amounts chargeable to others as their 
proportion of the costs incurred by the carrier in maintaining and 
operating joint shop and garage equipment and facilities, including 
overhead costs, except items creditable to account 5390, Joint Facility 
Rents--Credit. (See definition 25, and instruction 29.)
4200  Transportation expense.
    This account shall include the total of amounts included in accounts 
4210 to 4264.
4210  Supervision of transportation.
    This account shall include the pay and expenses (including cost of 
operating automobiles) of officials and employees engaged in supervising 
and directing transportation service, including superintendents, 
dispatchers, starters, inspectors, and employees engaged in furnishing 
tickets and supplies to drivers of passenger vehicles, or to receiving 
remittances, etc.; cost of light, heat, water, and refrigeration for the 
transportation department; and the cost of schedule or service checks. 
(See instruction 28.)
4220  Drivers' wages and bonuses.
    This account shall include the wages and bonuses of drivers of 
passenger vehicles engaged in passenger transportation service, 
including wages paid for time during which they are required to be on 
duty in readiness for active service. The wages of drivers on special 
trips for hire should also be charged to this account.

    Note: Charge to account 4360, Collection and Delivery, the wages of 
employees engaged in collecting express from consignors and delivering 
express to consignees, and local pick-up and delivery service provided 
for inter-city passengers, when such wages can be separated from those 
applicable to regular operation between terminals. (See instruction 28.)
4230  Fuel for revenue equipment.
    This account shall include the cost of gasoline, other fuel and 
enriching materials used by passenger equipment. Include in this account 
the cost of storing and handling fuel and amounts payable to others for 
the cost of transportation.

    Note A: Taxes on fuel shall be charged to account 5200, Operating 
Taxes and Licenses.
    Note B: Fuel used by service cars shall be charged to account 4122, 
Operation and Maintenance of Service Equipment.
    Note C: The cost of fuel used by equipment in collection and 
delivery service if determinable shall be included in account 4360, 
Collection and Delivery.
4240  Oil for revenue equipment.
    This account shall include the cost of lubricating oils used in 
lubricating passenger equipment. Include in this account the cost of 
storing and handling lubricating oil and amounts payable to others for 
the cost of transportation.

    Note A: Taxes on lubricating oil shall be charged to account 5200, 
Operating Taxes and Licenses.
    Note B: The cost of lubricating oil used by service cars shall be 
charged to account 4122, Operation and Maintenance of Service Equipment.
    Note C: The cost of lubricating oil used by equipment in collection 
and delivery service if determinable shall be included in account 4360, 
Collection and Delivery.
4250  Purchased transportation.
    This account shall include amounts payable to others for performing 
any portion of the carrier's inter-city tariff haul under contractual 
arrangements whereby the agreements for the compensation is based on 
other than actual division of tariff rates, and under arrangements 
whereby the expenses of the operation are borne by the hired carrier.
4261  Road expense.
    This account shall include the cost to the carrier of labor and 
material used in sanding roadways, spreading ashes or the removal of 
snow and ice, and otherwise. This includes the cost of tools and 
materials used in this work, including the cost of delivering such

[[Page 225]]

materials; wages of men operating snowplows, sweepers, tractors, 
scrapers, etc.; amounts paid to others for removing snow and ice; and 
other supplies and expenses, such as meals for crews engaged in removing 
snow and ice. (See instruction 28.)

    Note: The cost of repairs to equipment used in snow removal shall be 
included in account 4122, Operation and Maintenance of Service 
Equipment.
4262  Bridge, tunnel and ferry tolls.
    This account shall include tolls at rates per passenger, per ton, 
per vehicle, or other basis for the use of bridges, tunnels and ferries 
by revenue passenger equipment in transportation service.
4263  Wages of miscellaneous transportation employees.
    This account shall include the wages of co-operators (conductors), 
hostesses (conductorettes), lecturers and guides on busses, porters and 
stewards on busses, secret service inspectors, and other employees 
performing similar service.
4264  Other transportation expenses.
    This account shall include carrier transportation expenses not 
provided for in other accounts in the transportation group.

                                  items

Alcohol and other non-freeze preparations.
All expenses incidental to the comfort of passengers in connection with 
break-downs on the road.
Badges for employees.
Conductors' books, punches, etc.
Fines for traffic violations.
Fire extinguisher supplies (for passenger equipment).
Hat checks.
Head rest covers including laundry.
Ice and other refrigerants (for passenger equipment).
Lamps, bulbs and carbon (for passenger equipment).
Lodging for drivers and miscellaneous transportation employees.
Meals for drivers and miscellaneous transportation employees.
Notices.
Secret service inspections by other than employees.
Signs (paper and carboard).
Tire chains.
Uniforms, including their care.
4300  Station expense.
    This account shall include the total of amounts included in accounts 
4311 to 4396, inclusive.
4311  Salaries and commissions.
    This account shall include the wages and salaries of station 
employees; amounts paid to station or ticket agents in commissions or 
bonuses in lieu of salary; and the wages of express and mail handlers 
and clerks in passenger stations. (See instruction 28.)

                                  items

Announcers.
Baggage agents.
Baggagemen.
Clerks.
Commissions or bonuses to employees in lieu of wages.
Express agents.
Express handlers.
Janitors.
Mail handlers.
Platform men.
Porters.
Station agents.
Station gatemen.
Station masters.
Telephone and information operators.
Ticket agents.

    Note: Commissions paid to other than the accounting carrier's 
employees for the sale of tickets, handling of express, baggage, 
newspapers, etc., shall be included in account 4331, Commissions Paid.
4314  Supplies and expenses.
    This account shall include the expenses incurred (exclusive of 
salaries and wages of station employees) in the operation of passenger 
terminals, waiting rooms, shelter sheds, and other similar property used 
by the transportation department in connection with passenger traffic, 
such as the cost of the light, heat, water, and ice; cost of uniforms 
and badges for station employees; cost of hand tools and implements used 
in handling express and mail; cost of operation and maintenance or 
upkeep of permanent signs designating a station, depot or passenger 
terminal; and the cost of supplies used and amounts of other expenses 
incurred in operating passenger stations.

                                  items

Ash removal.

[[Page 226]]

Badges for employees.
Cleaning supplies.
Heating or cooling, including supplies.
Laundry service, including supplies.
Lighting.
Mail, baggage, and express handling costs, including baggage room 
expenses (exclusive of labor).
Power costs for station machinery.
Snow and dust removal on station grounds.
Sprinkling station grounds.
Tools and supplies for station use.
4319  Repairs to station buildings and equipment.
    This account shall include the cost of repairs to company stations, 
passenger terminals, waiting rooms, platforms, and other structures, 
together with fixtures, grounds and approaches, used in passenger 
transportation service; also include the cost of repairs to station 
furniture and equipment (but not equipment used in general offices) and 
carts, electric motor trucks, platform trucks, scales, and loading 
platforms, in connection with revenue baggage, mail and express.
4331  Commissions paid.
    This account shall include the amounts paid to others (except to the 
carrier's employees and to interline carriers) on a commission or 
guaranteed basis for the sale of tickets, handling of express, baggage, 
newspapers, etc.
4332  Other expenses allowed.
    This account shall include the amounts allowed to the operators of 
commission stations and passenger terminal for expenses such as 
advertising, rent, light, heat, power and water, telephone, telegraph 
and messenger services, etc.
4340  Interline commission paid.
    This account shall include all commissions paid to interline 
carriers.
4350  Interline commissions earned--Credit.
    This account shall include all commissions earned on interline 
tickets sold.
4360  Collection and delivery.
    (a) This account shall include the wages of drivers and helpers and 
other expenses of equipment used in collecting express from consignors 
and delivering express to consignees and local pick-up and delivery 
service provided for intercity passengers when such local service is 
included in the inter-city tariff rate. (See instruction 28.)
    (b) This account is intended to be used only when the expenses 
incurred in such local service can be separated from those incurred in 
regular operation between terminals.
    (c) This account shall be subdivided to reflect separately:
    (1) Wages of drivers and helpers.
    (2) Gasoline and oil expense (not including taxes).
    (3) Tires and tubes.
    (4) Repairs and servicing of equipment.
    (5) Other assignable operations and maintenance expenses.
4370  Purchased collection and delivery.
    This account shall include amounts payable for collection, delivery 
and transfer service performed by others under contractual arrangements, 
whereby the agreement for the amount payable is based on other than 
actual division of tariff rates.
4391  Joint station facilities--Debit.
    This account shall include the carrier's proportion of costs 
incurred by others in maintaining and operating joint station equipment 
and facilities, including overhead costs, except items chargeable to 
account 5340, Joint Facility Rents--Debit. (See definition 25, and 
instruction 29.)
4396  Joint station facilities--Credit.
    This account shall include the amounts chargeable to others as their 
proportion of the costs incurred by the carrier in maintaining and 
operating joint station equipment and facilities, including overhead 
costs, except items creditable to account 5390, Joint Facility Rents--
Credit. (See definition 25, and instruction 29.)
4400  Traffic, solicitation and advertising expense.
    This account shall include the total of amounts included in accounts 
4410 to 4470, inclusive.

[[Page 227]]

4410  Salaries and expenses.
    (a) This account shall include all salaries and expenses in 
connection with the promotion and solicitation of traffic. This includes 
the salaries of officers and their assistants who are directly in charge 
of traffic promotion and solicitation, including salaries of the traffic 
manager, general express and passenger agents; general commercial, city, 
general district and excursion agents, and their clerks and assistants.
    (b) This account shall also include the cost of supplies used and 
the amounts of expenses incurred and cost of operating automobiles by 
officers and their assistants who are directly in charge of traffic 
promotion and solicitation.

    Note: When officers and employees whose pay is chargeable to this 
account are engaged in work not chargeable to traffic promotion, or have 
jurisdiction over this and other departments, their salaries and 
expenses shall be allocated to the accounts appropriate. (See 
instruction 28.)
4430  Tariffs and schedules.
    This account shall include the salaries and expenses of officers and 
employees engaged in the preparation of tariffs, schedules and time 
tables, the cost of printing and other expenses incurred in the 
preparation of tariffs, schedules and time tables, including postage and 
transportation charges. (See instruction 28.)
4440  Tickets and baggage checks.
    This account shall include the salaries and expenses of employees 
engaged in receiving and distributing tickets, baggage checks, etc., 
together with the cost of manufacturing tokens and of printing tickets, 
baggage checks, milk checks, cash fare receipts, prepaid orders, 
identification checks, passes and other items of a similar nature, 
including transportation charges in connection therewith. (See 
instruction 28.)
4450  Other traffic expenses.
    This account shall include the carrier's proportion of expenses of 
traffic associations, including membership fees, and all other traffic 
expenses not provided for elsewhere.
4470  Advertising.
    (a) This account shall include the salaries and expenses in 
connection with advertising for the purpose of securing traffic, such as 
may be incurred in the preparation, printing and distribution of 
strictly advertising matter (not time tables).
    (b) This account shall also include the salaries and expenses of 
employees preparing advertising copy; the commissions paid outside 
advertising agents; cost of printing, publishing, and other advertising 
matter; the cost of advertising space in newspapers and periodicals; 
expenses incurred in connection with radio broadcasting for the purpose 
of securing traffic; electric, neon and display signs (permanent or 
portable), for attracting traffic, bulletin boards, cards, cases, 
display cards and photographs; postage and express charges on 
advertising matter; cost of bill posting and similar expenses. (See 
instruction 28.)

    Note: Cost of operation and maintenance of permanent signs 
designating a station or terminal shall be included in account 4314, 
Supplies and Expenses.
4500  Insurance and safety expense.
    This account shall include the total of amounts included in accounts 
4510 and 4580, inclusive.
4510  Salaries and expenses--Insurance and safety.
    (a) This account shall include the following items:
    (1) Salaries and wages, traveling and office expenses of officers, 
clerks and other employees of the insurance department, and special 
costs incurred in procuring insurance, such as brokerage fees (not 
included in premiums), notarial fees, and insurance inspection service.
    (2) Salaries and expenses of safety department, cost of safety-first 
and other campaigns among employees or the public for the purpose of 
preventing accidents and damages.
    (3) Salaries and expenses of officers and employees engaged 
regularly in claim department work; payments for the service of 
employees and others called in consultation in relation to claim 
adjustments; pay and expenses of

[[Page 228]]

employees while engaged as witnesses at inquests and law suits.
    (4) Salaries and expenses of officers and employees of the law 
department when specifically assigned to and engaged in injury and 
damage cases, and expenses of such officers and employees incurred on 
such cases when incidentally so engaged.
    (5) Payment to attorneys, investigators, adjusters, etc., who are 
not regular employees of the carrier for services and expenses in 
connection with injury and damage cases.
    (6) Cost of operating automobiles used by employees whose pay is 
charged to this account.
    (b) Reimbursements from insurance companies or others for expenses 
charged to this account on account of injuries and damages shall be 
credited to this account.

    Note: No part of the salaries of officers and employees of the law 
department shall be included in this account for merely incidental 
service in connection with injury and damage claims.
4520  Public liability and property damage insurance.
    This account shall include premiums payable to outside insurance 
companies for protection against liability to the public for injuries to 
persons and damages to the property of others, resulting from the 
operation of owned and leased vehicles in motor carrier service. (See 
instruction 27.)

    Note A: Premiums for insurance on property intrusted to the carrier 
for transportation or storage shall be included in account 4550, Baggage 
and Express Insurance.
    Note B: Amounts payable in settlement of claims for bodily injury or 
property damage which are not recoverable from insurance companies and 
for which the carrier has not provided estimated accruals for claims 
shall be charged to account 4530, Injuries and Damages.

[32 FR 20280, Dec. 20, 1967, as amended at 41 FR 32598, Aug. 4, 1976]
4530  Injuries and damages.
    This account shall be charged each period with amounts estimated to 
settle claims by others for injuries to persons (other than employees--
see account 4546, Workmen's Compensation--Provision for Claims) or 
damage to or destruction or loss of property, whether caused by fire, 
accident, or other cause, which are not covered by commercial insurance 
and which are not provided for elsewhere. (See instruction 27.) The 
carrier shall not accrue amounts to cover risk of loss or damage to its 
property from fire, theft, or similar loss contingencies.
    This account shall also be charged with amounts payable in 
settlement of claims for injuries to persons and damage to property of 
others which are not recoverable from insurance companies or for which 
estimates have not been provided.

    Note: Payments to or on behalf of employees other than those covered 
by workmen's compensation insurance, including accident and death 
benefits; salaries; hospital expenses; medical supplies; also salaries, 
fees, and expenses of surgeons, doctors, nurses, etc., when provided for 
through a plan for employees' benefits, shall be charged to account 
4652, Employees' Welfare Expenses.

[32 FR 20280, Dec. 20, 1967, as amended at 41 FR 32598, Aug. 4, 1976]
4541  Workmen's compensation--Insurance.
    This account shall include premiums payable to outside insurance 
companies for protection against liability for injuries to or deaths of 
employees payable under the provisions of workmen's compensation acts. 
(See instruction 27.)

    Note: Amounts payable in settlement of claims under the provisions 
of Workmen's Compensation Acts which are not recoverable from insurance 
companies shall be charged to account 4546, Workmen's Compensation--
Provision for Claims.

[32 FR 20280, Dec. 20, 1967, as amended at 41 FR 32598, Aug. 4, 1976]
4546  Workmen's compensation--Provision for claims.
    This account shall be charged each period with amounts estimated to 
settle claims by others for injuries to and death of employees arising 
under the workmen's compensation acts. (See instruction 27.) This 
account shall also be charged with amounts payable in settlement of 
claims which are not recoverable from insurance companies or for which 
estimates have not been provided.


[[Page 229]]


    Note: Payments to or on behalf of employees other than those covered 
by workmen's compensation insurance, including accident and death 
benefits; salaries; hospital expenses; medical supplies; also salaries, 
fees, and expenses of surgeons, doctors, nurses, etc., when provided for 
through a plan for employees' benefits, shall be charged to account 
4652, Employees' Welfare Expenses.

[32 FR 20280, Dec. 20, 1967, as amended at 41 FR 32598, Aug. 4, 1976]
4550  Baggage and express insurance.
    This account shall include premiums payable to outside insurance 
companies to indemnify the carrier against costs and expenses incurred 
through loss of and damage to express matter and baggage entrusted to 
the carrier for transportation or storage. (See instruction 27.)

    Note: Amounts payable in settlement of claims for loss of or damage 
to property entrusted to the carrier for transportation or storage which 
are not recoverable from insurance companies and for which the carrier 
has not provided estimates shall be included in account 4560, Baggage 
and Express Loss and Damage.

[41 FR 32598, Aug. 4, 1976]
4560  Baggage and express loss and damage.
    This account shall be charged each period with amounts estimated to 
settle claims by others for loss, damage, destruction or delay to 
express matter, baggage, parcels, etc., entrusted to the carrier for 
transportation or storage. (See instruction 27.) The carrier shall not 
accrue amounts to cover risk of loss or damage to its property from 
fire, theft, or similar loss contingencies. This account shall also be 
charged with amounts payable in settlement of claims which are not 
recoverable from insurance companies or for which estimates have not 
been provided.

    Note: Any provision or amounts payable for injuries or damages to 
employees and others, or amounts payable on account of damages to the 
property of others not intrusted to the carrier for transportation or 
storage shall be included in account 4530, Injuries and Damages.

[32 FR 20280, Dec. 20, 1967, as amended at 41 FR 32598, Aug. 4, 1976]
4570  Fire and theft insurance.
    (a) This account shall include premiums payable to outside insurance 
companies for fire and theft insurance on owned and lease vehicles and 
for fire insurance on structures, machinery, and equipment used in motor 
carrier operations. (See instruction 27.)
    (b) This account shall be charged with losses arising under the 
classes of risks enumerated in paragraph (a) which are not recoverable 
from insurance companies. The carrier shall not accrue amounts to cover 
risk of loss or damage to its property from fire, theft, or similar loss 
contingencies.
    (c) This account shall be charged with losses arising under the 
classes of risks enumerated in paragraph (a) which are not recoverable 
from insurance companies and for which the carrier has not provided 
self-insurance.

    Note: Recoveries from insurance companies or others for damages to 
the carrier's owned or leased property shall be accounted for as 
provided in paragraph (b) of account 2660, Insurance Reserves.

[32 FR 20280, Dec. 20, 1967, as amended at 41 FR 32598, Aug. 4, 1976]
4580  Other insurance.
    (a) This account shall include premiums paid to outside insurance 
companies for boiler; burglar; fidelity; holdup; lightning; plate glass; 
owners, landlords and tenants liability; and other forms of insurance 
coverage not elsewhere provided for. (See instruction 27.)
    (b) This account shall be charged with losses arising under the 
classes of risks enumerated in paragraph (a) of this section, which are 
not recoverable from insurance companies. The carrier shall not accrue 
amounts to cover risk of loss or damage to its property from fire, 
theft, or similar loss contingencies.

    Note: The cost of life insurance on the lives of officers and other 
employees of the carrier whereunder the carrier is the beneficiary shall 
be charged to account 7500, Other Deductions. Cash surrender values of 
such policies shall be carried in account 1650, Other Investments and 
Advances.

[32 FR 20280, Dec. 20, 1967, as amended at 41 FR 32599, Aug. 4, 1976]

[[Page 230]]

4600  Administrative and general expense.
    This account shall include the total amounts included in accounts 
4611 to 4696, inclusive.
4611  Salaries of general officers.
    This account shall include the salaries, bonuses and other forms of 
consideration for services of general officers whose jurisdiction 
extends over the entire transportation system of the carrier; and fees 
payable to receivers. As here used, the term General Officers would 
ordinarily include the following: Chairman of the Board, President, Vice 
President, Treasurer, Secretary, Comptroller, General Auditor General 
Manager.

    Note A: Do not include in this account amounts payable to 
organizations for services chargeable to account 4660, Management and 
Supervision Fees and Expenses.
    Note B: If officers and assistants supervise particular departments 
of carrier operations, or other operations, or are engaged in specific 
work other than supervision of the entire transportation system, their 
pay and expenses shall be apportioned to the appropriate accounts for 
carrier operations or other operations. (See instruction 28.)
4612  Expenses of general officers.
    This account shall include expenses incurred, including cost of 
operating automobiles, for the benefit of motor carrier operations by 
administrative officers (as defined in account 4611) such as traveling, 
and other incidental expenses.

                                  items

Hotel.
Meals.
Membership fees and dues in trade, technical and professional 
associations.
Traveling expenses.

    Note: Expenses in connection with operating the general offices of 
the carrier shall be included in account 4630, General Office Supplies 
and Expenses.
4613  Salaries of general office employees.
    This account shall include the salaries (see instruction 28), 
bonuses and other forms of consideration for services of employees who 
are engaged in the general administrative offices of the carrier and 
whose services are not chargeable to any other department or to other 
operations, including the following: accountants, bookkeepers, cashiers, 
clerks, engineers, janitors, messengers, paymasters, statisticians, 
stenographers, traveling auditors.
4616  Expenses of general office employees.
    This account shall include the expenses incurred, including cost of 
operating automobiles, for the benefit of motor carrier operations by 
employees whose salaries are included in account 4613, Salaries of 
General Office Employees.

                                  items

Hotel.
Meals, including payment therefor on account of overtime work.
Membership fees and dues in trade, technical and professional 
associations.
Traveling expenses.
4620  Law expenses.
    This account shall include, except as provided for elsewhere, the 
pay and expenses of officers, assistants, office forces, and other 
employees of the law department; fees and retainers, supplies, and 
expenses of attorneys not regularly employed; court costs; and supplies 
and expenses of the law office.

                                  items

Salaries:
    Attorneys and assistants.
    Clerks.
    Counsel.
    Law clerks.
    Special counsel.
    Other employees of law department.
Expenses:
    Building service.
    Cost of law suits.
    Cost of operating automobiles.
    Cost of preparing and printing agreements, briefs, reports, etc.
    Court costs.
    Court fees.
    Law books, periodicals and subscriptions to special services.
    Law expenses of receivers.
    Legal forms, and law offices supplies postage and stationery.
    Meals, including payment therefor on account of overtime work.
    Payments to attorneys who are not regular employees.
    Premiums on court and other bonds.
    Printing.

[[Page 231]]

    Tax reports, claims, etc., when handled by legal staff.
    Transcripts of testimony, copies of exhibits, etc.
    Traveling expenses of attorneys, witnesses, etc.
    Witness fees.

    Note A: The pay of law department officers and employees engaged in 
formal cases before regulatory commissions, or in cases in which such a 
commission is a party, or when specifically assigned to injury and 
damage cases, shall be charged to account 4673, Other Regulatory 
Commission Expenses, account 4510, Salaries and Expenses--Insurance and 
Safety, or other appropriate account. (See instruction 28.)
    Note B: Law expenses incident to the purchase and construction of 
carried operating property or the acquisition of certificates from 
Federal or State commissions or securing from local authorities 
franchises or consents with a life of more than one year shall be 
charged to the appropriate subdivision of account 1500, Organization, 
Franchises and Permits. Law expenses incident to the issuance of long-
term debt or capital stock shall be charged to account 1880, Unamortized 
Debt Discount and Expense, account 2400, Unamortized Premium on Debt, or 
account 1910, Commission and Expense on Capital Stock, as appropriate.
4630  General office supplies and expenses.
    This account shall include the cost of office supplies and the 
office expense in connection with the general administrative functions 
of the carrier's motor carrier operations.

                                  items

Books.
Cleaning office.
Drinking water and refrigeration.
Heat and light.
Janitor service.
Letterheads and envelopes.
Paper.
Pens, pencils, ink, fasteners and office supplies.
Postage.
Printing forms for office use.
Repairs to general office buildings, furniture, fixtures, and equipment.
Stationery and office supplies.
Subscriptions to newspapers, periodicals and clipping bureaus.
Towels.
Typewriter supplies.
Waste baskets.
4640  Communication service.
    This account shall include the cost of all communication service 
payable to outside companies, such as telephone, teletypewriter, 
telegraph, radio, etc.

    Note: Taxes on telegrams and telephone tolls shall be charged to 
account 5200, Operating Taxes and Licenses.
4651  Outside auditing expenses.
    This account shall include amounts paid as fees for auditing and 
accounting services rendered by individuals or firms other than 
carrier's employees.

    Note: The fees of independent auditors and accountants in preparing 
financial and other statements incident to the issuance of long-term 
debt or capital stock shall be charged to account 1880, Unamortized Debt 
Discount and Expense, account 2400, Unamortized Premium on Debt, or 
account 1910, Commission and Expense on Capital Stock, as appropriate.
4652  Employees' welfare expenses.
    (a) This account shall include pensions or other benefits paid to 
active and retired employees, their representatives or beneficiaries, 
and salaries and expenses incurred in conducting relief, benefit and 
general medical departments. It shall include payments to or on behalf 
of employees on account of injuries or accidental death when such 
payments come within the scope of a carrier's general provision for 
employees' benefits.
    (b) If the carrier has definitely undertaken by contract to pay 
pensions to employees when regularly retired for superannuation or 
disability and has established a fund to be held in trust for such 
pension purposes, the carrier shall charge to this account periodic 
amounts determined through the application of equitable actuarial 
factors to the current payrolls, which, together with interest accruals 
on trust funds, will, as nearly as may be practicable, provide for the 
payment of such pensions, or for the purchase of annuities corresponding 
thereto. The amounts so charged shall be concurrently credited to a 
separate subdivision of account 2690, Other Reserves. The total of 
actual payments and accruals for future payments charged to this account 
for pensions, shall not exceed the amounts determined as hereinbefore 
prescribed.

[[Page 232]]

The carrier shall maintain a complete record of the actuarial 
computations through which the accrual each period of its pension 
liabilities is established.
    (c) Upon the adoption of the accrual plan of accounting, pension 
payments to employees retired before the adoption of such plan shall be 
charged to an existing pension reserve, this account 4652. If a carrier 
pays into its pension trust fund the amount of its existing pension 
reserve, any such amounts in excess of provision for pensions granted 
prior to the adoption of the accrual plan may be applied in whole or in 
part to the adjustment of future accrual charges.
    (d) Before adopting the accrual plan of accounting for pensions, the 
carrier shall inform the Commission of the details of its pension plan, 
giving full statement of the facts which in its judgment establish a 
contractual obligation for pension payments, together with the actuarial 
formula under which it proposes to create its pension trust fund, and 
also a copy of the declaration of trust under which the fund is to be 
established.
    (e) No charges shall be made to this account in anticipation of 
discretionary pension payments in the future.

                                  items

Accident, sickness, death, and other disability benefits to employees, 
their representatives or beneficiaries.
Employees of relief, benefit, and general medical departments, pay and 
expenses of.
Expenses in connection with employees' disability cases, such as 
hospital, nursing, and medical attendance.
Fees and retainers for medical and similar services incurred by relief, 
benefit, and general medical departments.
Medical service.
Office supplies.
Postage, printing and stationery.
Premiums paid for group insurance for the benefit of employees or their 
beneficiaries.
Traveling expenses.

    Note: The cost of life or other insurance whereunder the carrier is 
the beneficiary shall be charged to account 7500, Other Deductions. Cash 
surrender values of such policies shall be carried in account 1650, 
Other Investments and Advances.

[32 FR 20280, Dec. 20, 1967, as amended at 40 FR 53252, Nov. 17, 1975]
4655  Purchasing and store expenses.
    (a) This account shall include salaries and expenses of purchasing 
agents, and their assistants, whose jurisdiction extends over all 
purchases such as parts, gasoline and other fuel, stationery supplies, 
etc.
    (b) This account shall include credits for cash and other discounts 
when it is not practicable to apply such discounts directly to the cost 
of materials to which they relate.
    (c) This account shall include such differences from inventory 
adjustments which have not been otherwise apportioned in accordance with 
note B under account 1180, Material and Supplies.

    Note A: Suitable proportions of items included in this account may 
be allocated to the cost of materials and supplies. (See instruction 
19.)
    Note B: See also instruction 16 with reference to clearing accounts 
which may be maintained.
4656  Other general expenses.
    (a) This account shall include all general expenses connected with 
motor carrier operations not provided for elsewhere including fees and 
expenses payable to directors and trustees; expenses in connection with 
publishing and mailing reports and notices to stockholders, etc.; cash 
overages and shortages and fees for filing annual reports and other 
documents not specifically related to certificates or applications for 
issuance of securities.
    (b) This account shall also include contributions for charitable, 
social or community welfare purposes which have a direct relation to the 
protection of the property of carrier property, development of its 
business, or welfare of its employees. (See account 7500, Other 
Deductions.)

    Note: Direct contributions to employees' welfare associations shall 
be included in account 4652, Employees' Welfare Expenses.

[32 FR 20280, Dec. 20, 1967, as amend at 42 FR 64351, Dec. 23, 1977]
4660  Management and supervision fees and expenses.
    (a) This account shall include fees and expenses payable to any 
corporation, firm or individual, other than officers and employees of 
the carrier, for

[[Page 233]]

continuously rendered supervision and management.
    (b) This account shall be subdivided to reflect:
    (1) Management and supervision fees and expenses of associated 
companies.
    (2) Management and supervision fees and expenses of other companies.
    (c) Records supporting this account shall be kept so as to show (1) 
the basis of the fees, i.e., the gross or net earnings of the carrier, 
if such is the basis, (2) the percentage applied in determining the fee, 
(3) the amount of the fee, and (4) the amount of the expenses.
4671  Franchise requirements--Debit.
    (a) This account shall include the total cost to the carrier in 
connection with payments to governmental authorities in compliance with 
franchises, ordinances or similar requirements, except taxes and license 
fees, provided, however, that the carrier may charge this account with 
the amounts based on regular tariff rates of intrastate transportation 
furnished without charge under provisions of franchises.
    (b) When no direct outlay is involved concurrent credit for such 
charges shall be to account 4672, Franchise Requirements--Credit.
4672  Franchise requirements--Credit.
    This account shall include concurrent credits for charges which are 
made to account 4671, Franchise Requirements--Debit, to the extent that 
such charges do not represent direct outlays.
4673  Other regulatory commission expenses.
    (a) This account shall include expenses incurred by the carrier in 
connection with formal cases before Federal or State regulatory bodies 
or cases in which such a body is a party; also include payments made to 
a regulatory commission for fees or amounts assessed against the 
accounting carrier for pay and expenses of the regulatory commission, 
its officers, agents and employees, other than those incurred in 
securing certificates of convenience and necessity and authority for the 
issuance of securities.
    (b) Amounts includible in this account which by approval or 
direction of the Commission are to be spread over future periods shall 
be charged to account 1890, Other Deferred Debits, and amortized by 
charges to this account.

                                  items

Fees, retainers, and expenses of counsel, solicitors, attorneys, clerks, 
attendants, witnesses, and others whose services are secured for the 
defense or prosecution of petitions or complaints presented to 
regulatory bodies.
The pay of officers and employees specifically assigned to or engaged in 
the valuation of property owned or used by the carrier, in connection 
with such cases, and the cost of similar work performed by others.
Amounts assessed by Federal and State regulatory commissions for pay and 
expenses of their officers, agents, and employees; office and traveling 
expenses; stationery, printing and engineering supplies; and other 
expenses and supplies including expenses of officers and employees upon 
matters covered by this account even though no portion of their pay is 
assignable hereto.

    Note A: Expenses incurred for the improvement of service, for 
additional inspection, or rendering reports which are made necessary by 
the rules and regulations, or orders, of regulatory bodies, shall be 
charged to the appropriate operation and maintenance expense accounts.
    Note B: Expenses incident to securing certificates of convenience 
and necessity shall be charged to the appropriate subdivision of account 
1500, Organization, Franchises and Permits. Expenditures incident to 
securing authorization for issuance of long-term debt or capital stock 
shall be charged to account 1880, Unamortized Debt Discount and Expense, 
account 2400, Unamortized Premium on Debt, or account 1910, Commission 
and Expense on Capital Stock, as appropriate.

    Cross Reference: For regulations relating to certificates of public 
convenience and necessity, see parts 1120 and 1121 of this chapter.
4680  Uncollectible revenues.
    (a) This account shall include charges for receivables for carrier 
operating revenues which, after a reasonably diligent effort to collect, 
have proved impracticable of collection. If accounts which have been so 
written off are afterwards collected, the amount received shall be 
credited to this account; Provided, however, That such recoveries are 
from accounts charged off against this account.

[[Page 234]]

    (b) Charges to this account may be made on the basis of the 
estimated average loss due to uncollectible accounts in which case the 
concurrent credit shall be to account 2650, Reserve for Uncollectible 
Accounts. To the reserve thus established shall be charged such amounts 
as are determined to be uncollectible; amounts written off and 
subsequently collected shall be credited to the reserve. When charges to 
such accounts are thus made by estimate, the estimate shall be adjusted 
at the end of each calendar year to conform to the experience of the 
accounting carrier as determined by analysis of its accounts receivable.

    Note: Losses on receivables for other than operating revenues, and 
losses on notes or claims, shall be included in account 7500, Other 
Deductions.
4691  Joint operating expense--Debit.
    This account shall include amounts payable to others representing 
the cost of operation and maintenance of joint facilities used for 
general purposes, such as a general office, or where amounts payable 
cannot be segregated between the functional groups of expense accounts 
provided in this part. (See instruction 29.)
4696  Joint operating expense--Credit.
    This account shall include amounts received by the accounting 
carrier as reimbursement for operating and maintaining costs incurred by 
it in connection with a joint facility used for general purposes such as 
general office, or when the amounts received cannot be segregated 
between the functional groups of expense accounts provided in this part. 
(See instruction 29.)

                          Depreciation Expense

5000  Depreciation expense.
    (a) This account shall include the amount of depreciation charges 
applicable to the accounting period for all classes of depreciable 
carrier operating property, including improvements to leased property, 
if any, as provided in instruction 25. The amounts charged to this 
account shall be concurrently credited to account 2500, Reserve for 
Depreciation--Carrier Operating Property.
    (b) The following subdivisions of this account shall be maintained 
to reflect the amount of depreciation charges on each class of property 
and the necessary depreciation adjustment on carrier operating property 
at the time it is retired from service as provided in instruction 21 
(see definition 33):

5011  Depreciation of Structures.
5021  Depreciation of Revenue Equipment.
5031  Depreciation of Service Cars and Equipment.
5041  Depreciation of Shop and Garage Equipment.
5051  Depreciation of Furniture and Office Equipment.
5061  Depreciation of Miscellaneous Equipment.
5071  Depreciation of Improvements to Leasehold Property.
5081  Depreciation of Undistributed Property.
5091  Depreciation of Adjustment.

                          Amortization Expense

5100  Amortization of carrier operating property.
    This account shall include the amount of the amortization charges 
applicable to the accounting period for amounts carried in account 1501, 
Organization, account 1511, Franchises, and account 1541, Patents, for 
fixed-term franchises, licenses, and patent rights; and for fixed-term 
interest in land and land rights carried in account 1201--Land and Land 
Rights. Such charges shall be computed so as to distribute the book cost 
of each item evenly throughout its service life to the carrier. (See 
also account 2600, Reserve for Amortization--Carrier Operating 
Property.)

                           Taxes and Licenses

5200  Operating taxes and licenses.
    (a) This account shall include the amount of Federal, State, county, 
municipal and other taxing district taxes, which relate to motor carrier 
operations and property used therein (except taxes provided for in 
account 8000, Income Taxes on Ordinary Income).
    (b) This account shall be charged each month (or 4-week period) with 
the amount of taxes applicable thereto, with concurrent credits to 
account 2120, Taxes Accrued, or account 1170, Prepayments, as 
appropriate. When it

[[Page 235]]

is not possible to determine the actual taxes, they shall be estimated 
and the applicable portion of the total tax included in this account 
each month (or 4-week period). Taxes included in this account on an 
estimated basis shall be adjusted when the actual levies become known. 
Taxes on gasoline, other motor fuel and lubricating oil shall be 
included in this account on the basis of actual consumption.
    (c) The records shall be kept so as to show separately for each of 
the following subdivisions the amount of each class of tax included in 
this account and the basis on which it is levied, segregated between the 
amounts levied by the Federal government, and by State, Municipal, and 
other taxing authorities.

[32 FR 20280, Dec. 20, 1967, as amended at 37 FR 25846, Dec. 5, 1972]
5210  Gasoline, other fuel and oil taxes.
    Include in this account all taxes levied by Federal, State, or other 
governmental bodies on motor fuel and motor oil consumed during the 
current accounting period.
5220  Vehicle license and registration fees.
    Include in this account the cost of all fees assessed for the 
privilege of operating vehicles over the highways, such as registration 
fees, license plate fees, mileage taxes, seat taxes, seat-mile taxes, 
gross weight taxes, ton-mile taxes, port of entry fees, permits for 
overload and oversize, Federal use tax, certificates of title fees, 
vehicle qualification fees and similar items.
5230  Real estate and personal property taxes.
    Include in this account the amount of taxes based on the value of 
real estate and personal property.
5240  Social security taxes.
    Include in this account the amount of social security, unemployment, 
and oldage benefit taxes payable to the Federal and State governments.
5250  Other taxes.
    Include in this account all other operating taxes not specifically 
provided for in accounts 5210 to 5240, inclusive.

                                  items

Capital stock taxes.
City licenses and permits.
Corporation taxes assessed for privilege of doing business as a 
corporation.
Gross receipts taxes not otherwise provided for.
Occupancy taxes.
Sales taxes paid by carrier as vendor.
Stock transfer taxes.
Telephone, telegraph, and other communication taxes.
Tires and tubes, taxes on purchase or rental of, and
All other taxes, licenses or fees not otherwise provided for.

    Note A: Taxes on property leased from others for use in motor 
carrier operations, when the lessee is obligated under the terms of the 
lease to pay such taxes in addition to stipulated rent, shall be 
included in this account.
    Note B: All other sales or excise taxes not provided for in this 
account shall be included in the account charged with the cost of the 
material or services.
    Note C: Amounts received by the carrier in reimbursement of taxes on 
property operated as a joint facility (see definition 25) shall be 
credited to account 5390, Joint Facility Rents; Credit. Payments to 
other carriers for a portion of taxes on joint facilities shall be 
charged to account 5340, Joint Facility Rents; Debit.
    Note D: The following taxes and fees shall not be charged to this 
account:
    1. Fees for filing annual reports and other documents not 
specifically related to certificates or applications for issuance of 
securities shall be charged to account 4656, Other General Expenses.
    2. Special assessments for street or other improvements and fees or 
charges, sometimes called taxes, such as water taxes, street sprinkling 
and sidewalk repairs, which are payments for some specific services 
rendered by municipal or other taxing bodies, shall be charged to the 
appropriate property investment or maintenance accounts. (See note B, 
account 1201, Land and Land Rights.)
    3. Taxes on property, the investment in which is included in account 
1400, Non-carrier operating property, and account 1450, Non-operating 
property, shall be charged to account 6000, Net Income from Non-carrier 
Operations, or account 6100, Net Income from Non-operating Property, as 
appropriate.

[[Page 236]]

    4. Taxes on property leased to others shall be charged to the 
account to which the rent revenue is credited.
    5. Taxes assumed by the carrier on bond and note interest shall be 
charged to account 7200, Taxes Assumed on Interest.
    6. Taxes paid on original issues of capital stock shall be included 
in account 1910, Commission and Expense on Capital Stock.
    7. The cost of State identification plates, for which a small charge 
is made to cover cost of manufacture, shall be included in account 4264, 
Other Transportation Expenses, or account 4360, Collection and Delivery, 
as appropriate.

                             Operating Rents

5300  Operating rents--Net.
    This account shall include the net total of amounts included in 
accounts 5310 to 5390, inclusive. (See instruction 30.)
5310  Equipment rents--Debit.
    This account shall include the amounts payable for use of automotive 
equipment on whatever basis such rent may be determined. All expenses 
incurred in connection with the operation of leased equipment which the 
lessee is obligated to assume in addition to the amount stipulated as 
rent, shall be included in the operation and maintenance or other 
accounts as appropriate.

    Note: Amounts payable for rental of equipment included in the lease 
of a distinct operating unit shall be charged to account 5400, Rent for 
Lease of Carrier Property--Debit.
5320  Other operating rents--Debit.
    This account shall include all rental payments for the use of 
property employed in motor carrier operations not provided for 
elsewhere, such as:
    (a) Rent for shop and garage space.
    (b) Rents paid for use of property by the transportation department.
    (c) Rents paid for use of terminals and stations.
    (d) Rents paid for use of property by the traffic and solicitation 
department.
    (e) Rents paid for use of the general office.

    Note: Rental payments for property not used in transportation 
operations shall be charged to the appropriate other income account.
5340  Joint facility rents--Debit.
    This account shall include amounts payable to other carriers as 
their proportion of rent, including taxes and depreciation, for the use 
of property under a joint facility arrangement. (See definition 25, and 
instruction 29.)
5350  Equipment rents--Credit.
    This account shall include amounts receivable for use of automotive 
equipment on whatever basis such rent may be determined.

    Note: Amounts receivable for rental of equipment included in the 
lease of a distinct operating unit shall be credited to account 5500, 
Income from Lease of Carrier Property--Credit.
5360  Rent from owned land and structures.
    This account shall include the rent from land and structures, the 
cost of which is included in accounts 1200, Carrier Operating Property, 
and 1300, Carrier Operating Property Leased to Others, except joint 
facilities.

    Note: Rent from subleases of property rented from others shall be 
included in account 5370, Sublease Rental Income.
5370  Sublease rental income.
    This account shall include rents receivable from subleases of 
carrier operating property rented from others.
5390  Joint facility rents--Credit.
    This account shall include amounts receivable from other carriers as 
their proportion of rent, including taxes and depreciation, for the use 
of property under a joint facility arrangement. (See definition 25, and 
instruction 29.)

                        Lease of Carrier Property

5400  Rent for lease of carrier property--Debit.
    This account shall include amounts payable, for rent of property 
constituting a distinct operating unit (see definition 24 and 
instruction 30) or system leased from others for use in motor carrier 
operations when the carrier has exclusive possession.

    Note: Taxes payable upon leased property, assumed by the lessee, 
shall be included in account 5200, Operating Taxes and Licenses.

[[Page 237]]

5500  Income from lease of carrier property--Credit.
    (a) This account shall include amounts receivable for rent of 
property constituting a distinct operating unit (see definition 24, and 
instruction 30) or system leased by the carrier to others for motor 
carrier operations where the lessee has exclusive possession.
    (b) This account shall include as a deduction from rent revenue, 
expenses such as repairs, depreciation, insurance, and taxes assumed by 
the lessor; uncollectible rents, etc., in connection with the property 
leased.
    (c) This account shall be divided to show separately for each lease 
the following:
    (1) Rent revenue.
    (2) Expenses.
    (3) Depreciation and amortization.
    (4) Taxes.
    (5) Uncollectible rents.

                              Other Income

6000  Net income from non-carrier operations.
    (a) This account shall include the revenues from and expenses 
incurred in the operation of property, the investment in which is 
carried in account 1400, Non-Carrier Operating Property.
    (b) This account shall be subdivided to reflect:
    (1) The total revenues derived from non-carrier operating property 
operations.
    (2) The total expenses incurred in non-carrier operating property 
operations.

    Note A: The expenses referred to include every element of cost 
incurred in such operations including depreciation, rents, taxes and 
insurance.
    Note B: Each carrier may adopt its own classification of revenue and 
expenses for this account. The classification shall be such, however, as 
to permit ready analysis of the revenue and expense.
6100  Net income from non-operating property.
    (a) This account shall include all rent revenues from land, 
buildings, and other property not devoted to transportation operations, 
the book cost of which is included in account 1450, Non-Operating 
Property.
    (b) This account shall include as a deduction from rent revenue, 
expenses such as repairs, depreciation, amortization, taxes, 
uncollectible rents, insurance, etc., in connection with the property 
leased.
    (c) This account shall be subdivided to show separately for each 
lease the following:
    (1) Rent revenue.
    (2) Expenses.
    (3) Depreciation and amortization.
    (4) Taxes.
    (5) Uncollectible rents.
6200  Interest income.
    (a) This account shall include interest accruing to the accounting 
carrier upon securities of other companies and Federal, State, or 
municipal governments, on loans, notes and advances; special deposits 
and all other interest bearing assets, including simple interest charged 
to property during its construction. Interest accrued shall not be 
credited to this account unless its payment is reasonably assured; in 
other cases, credits to this account shall be based upon the interest 
actually collected.
    (b) This account shall be kept so as to show separately the interest 
income from each investment and from each associated company.

    Note A: No interest upon reacquired securities issued or assumed by 
the accounting carrier shall be credited to this account.
    Note B: Interest accrued on securities of other companies held in 
sinking or other special funds shall be credited to account 6400, Income 
from Sinking and Other Funds.
6300  Dividend income.
    (a) This account shall include revenue derived by the accounting 
carrier from the dividends on stocks of other companies held by it. 
Accruals of guaranteed dividends may be included in this account if the 
payment is reasonably assured.
    (b) This account shall be kept so as to show separately the dividend 
income from each investment and from each associated company.

    Note: No dividends on reacquired securities issued by the carrier 
shall be credited to this account.

[[Page 238]]

6400  Income from sinking and other funds.
    This account shall include all revenues (whether interest or 
dividends) accrued on cash, securities (not issued or assumed by the 
accounting carrier) or other assets held in sinking fund and other 
special funds.

    Note: This account covers all income from investments of special 
funds, whether required to be retained in the fund or not. If such 
income is required to be retained in the fund and the fund required to 
be represented by a reserve, the amount of such accretions to the fund 
shall be concurrently credited to the appropriate reserve account and 
charged to account 2944, Appropriations to Reserves.
6500  Other non-operating income.
    This account shall include all income accrued to the accounting 
carrier in accordance with the terms of any contract by which the 
carrier is entitled to participate in the profits from the operations of 
others and all other non-operating income not provided for in any of the 
foregoing accounts.
    This account shall also include the current unrealized gain on the 
marketable equity securities in account 1060, only to the extent the 
gain is represented by a decrease in the valuation allowance. (See 
instruction 2-15.)

    Note A: ``Profits from the operations of others'' does not include 
any dividends on stock. Revenues from dividends shall be credited to 
account 6300, Dividend Income, or to account 6400, Income from Sinking 
and Other Funds, as appropriate. appropriate.
    Note B: Gains from extinguishment of debt shall be aggregated and, 
if material, credited to account 9010, Extraordinary items, upon 
approval by the Commission.

[32 FR 20280, Dec. 20, 1967, as amended at 40 FR 53252, Nov. 17, 1975; 
42 FR 33301, June 30, 1977]
6600  Unusual or infrequent items (credit).
    Included in this account shall be 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 2-7, upon approval by 
the Commission.

[40 FR 53253, Nov. 17, 1975]

                            Income Deductions

7000  Interest on long-term obligations.
    (a) This account shall include all interest accrued on unmatured 
outstanding long-term obligations issued or assumed by the accounting 
carrier; also interest accrued on debentures and on receivers' 
certificates which mature more than 1 year after date of issue. This 
account does not include interest on securities held by the accounting 
carrier in its treasury, in sinking or other special funds, or pledged 
as collateral.
    (b) This account shall be kept so as to show the interest expense 
(accrual) on each of the following classes or subdivisions of long-term 
obligations:
    (1) Equipment obligations.
    (2) Advances.
    (3) Bonds.
    (4) Other long-term obligations.
7100  Other interest deductions.
    This account shall include interest on all short-term obligations of 
the accounting carrier, such as notes or loans for terms of less than 1 
year, unpaid taxes, or other accounts payable, etc., and also interest 
on matured long-term obligations.
7200  Taxes assumed on interest.
    This account shall include amounts paid to holders of the bonds or 
other indebtedness of the carrier in reimbursement of income and other 
taxes levied against income from such obligation or levied as a tax for 
ownership of the obligation, where the mortgage, indenture, or other 
instrument provides for payment of such taxes by the carrier.
7300  Amortization of debt discount and expense.
    This account shall include for any period that proportion of the 
unamortized discount and expense on outstanding long-term debt which is 
applicable to the period. This proportion shall be determined according 
to a rule, the uniform application of which during the interval between 
the issue and maturity of any debt will completely amortize the discount 
at which

[[Page 239]]

such debt was issued and the debt expense connected therewith. Debt 
expense and debt discount charged to this account shall be concurrently 
credited to account 1890, ``Other Deferred Debits,'' and 2370, 
``Unamortized Discount on Debt,'' respectively. (See also instruction 2-
13.3.)

[32 FR 20280, Dec. 20, 1967, as amended at 41 FR 52468, Nov. 30, 1976]
7400  Amortization of premium on debt--Credit.
    This account shall include the proportion of the premium at which 
outstanding long-term debt was issued which is applicable to each 
period. This proportion shall be determined according to a rule the 
uniform application of which during the interval between the issuance 
and the maturity of any debt will completely amortize the premium at 
which such debt was issued. Amounts credited to this account shall be 
concurrently charged to account 2380, ``Unamortized Premium on Debt.'' 
(See instruction 2-13.)

[32 FR 20280, Dec. 20, 1967, as amended at 41 FR 52468, Nov. 30, 1976]
7500  Other deductions.
    This account shall include all deductions from gross income not 
provided for in any of the foregoing accounts such as:
    (a) Unsecured accruals on obligations arising under contracts 
whereby the accounting carrier has guaranteed the annual or more 
frequent periodic payment of money or performance of other obligation on 
the part of another corporation or person, and because of the default of 
such other corporation or person, the liability of the accounting 
carrier has become actual.
    (b) Losses resulting from the operations of others, whenever, in 
accordance with the terms of any contract, the accounting carrier is 
bound to contribute toward reimbursement of such losses.
    (c) Losses on receivables, notes or claims, which are not includible 
in account 4680, Uncollectible Revenue.
    (d) Amortization charges of the book value of property included in 
account 1550, Other Intangible Property, and other items carried among 
its assets.
    (e) Contributions for charitable, social, or community welfare 
purposes which do not have a direct relation to the protection of 
carrier property, development of its business or welfare of its 
employees. (See account 4656, Other General Expenses.)
    (f) Penalties and fines for violations of law not provided for in 
account 4264, Other Transportation Expenses.
    (g) Premiums for life insurance carried on the lives of officers and 
employees when the carrier is the beneficiary.
    (h) Losses resulting from extinguishment of debt shall be aggregated 
and, if material, charged to account 9010, Extraordinary items, upon 
approval by the Commission.
    (i) Unrealized losses on the marketable equity securities in account 
1060 to the extent these losses are represented by an increase in the 
valuation allowance. (See instruction 2-15.)

[32 FR 20280, Dec. 20, 1967, as amended at 40 FR 53253, Nov. 17, 1975; 
42 FR 33301, June 30, 1977; 42 FR 64351, Dec. 23, 1977]
7600  Unusual or infrequent items (debit).
    Included in this account shall be 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 2-7, upon approval by 
the Commission.

[40 FR 53253, Nov. 17, 1975]

                              Income Taxes

8000  Income taxes on income from continuing operations.
    (a)(1) This account shall be debited with the monthly accruals for 
all income taxes which are estimated to be payable and which are 
applicable to ordinary income (see instruction 2-32). See text of 
account 9060, Income taxes on extraordinary and prior period items.
    (2) Details pertaining to the tax consequences of other unusual and 
significant items and also cases where the tax consequences are 
disproportionate to the related amounts included in income accounts, 
shall be submitted to the Commission for consideration and decision as 
to proper accounting.
    (b) This account shall be subdivided as follows: 8010 Federal Income 
Taxes,

[[Page 240]]

8020 State Income Taxes, and 8030 Other Income Taxes.

    Note: Personal income taxes of sole proprietors and members of a 
partnership shall not be charged to this account; if paid from funds of 
the business, the amounts thereof shall be charged to account 2800, Sole 
Proprietorship Capital, or account 2810, Partnership Capital, as 
appropriate.

[32 FR 20280, Dec. 20, 1967, as amended at 39 FR 33349, Sept. 17, 1974]
8040  Provision for deferred taxes.
    (a) This account shall include the tax effect of all timing 
differences (see definitions 1-41 (g) and (e)) originating and reversing 
in the current accounting period, and the future tax benefits of loss 
carryforwards recognized in accordance with instruction 2-32(c).
    (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 2-32(d)).

[39 FR 33349, Sept. 17, 1974]

                         Discontinued Operations

8100  Income (loss) from operations of discontinued segments.
    This account shall include the results of operations of a segment of 
a business (see definition 1-43), after giving effect to income tax 
consequences, that has been or will be discontinued in accordance with 
the text of instruction 2-7, upon approval by the Commission.

[40 FR 53253, Nov. 17, 1975]
8120  Gain (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 2-7, upon approval by the 
Commission.

[40 FR 53253, Nov. 17, 1975]

               Extraordinary Items and Accounting Changes

9010  Extraordinary items (net).
    (a) This account shall include extraordinary items accounted for 
during the current accounting year in accordance with the text of 
instruction 2-7, upon submission of a letter from the carrier's 
independent accountants, approving or otherwise commenting on the item 
and upon approval by the Commission.
    (b) This account shall be maintained in a manner sufficient to 
identify the nature and gross amount of each debit and credit.
    (c) Federal income tax consequences of charges and credits to this 
account shall be recorded in account 9050, Income taxes on extraordinary 
items, or 9060, Provision for deferred taxes--extraordinary items.

[40 FR 53253, Nov. 17, 1975]
9050  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 extraordinary, and are recorded in account 9010, 
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 9060, Provision for deferred taxes--
extraordinary items.

[40 FR 53253, Nov. 17, 1975]
9060  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 9010, 
Extraordinary items (net). (See instruction 2-32).

[40 FR 53253, Nov. 17, 1975]
9070  Cumulative effect of changes in accounting principles.
    This account shall include the cumulative effect of changing to a 
new accounting principle, after giving effect

[[Page 241]]

to income tax consequences, in accordance with instruction 2-7, upon 
approval by the Commission.

[40 FR 53253, Nov. 17, 1975]
9999  Form of income statement.

                             Ordinary Items                             
                       i. Carrier Operating Income                      
                                                                        
Revenues:                                                               
  3000  Operating revenues (Exclusive of transfers from                 
   government authorities)......................................  ......
  3700  Operating revenues--transfers from government                   
   authorities for current operations...........................  ......
  3800  Operating revenues--amortization of deferred transfers          
   from government authorities..................................  ......
                                                                 =======
Expenses:                                                               
  4000  Operation and Maintenance Expenses......................  ......
  5000  Depreciation Expense....................................  ......
  5100  Amortization of Carrier Operating Property..............  ......
  5200  Operating Taxes and Licenses............................  ......
  5300  Operating Rents--Net....................................  ......
                                                                 -------
    Total Expenses..............................................  ......
                                                                 =======
    Net Operating Revenue.......................................  ......
                                                                 =======
  5400  Rent for Lease of Carrier Property--Debit...............  ......
  5500  Income from Lease of Carrier Property--Credit...........  ......
    Net Carrier Operating Income................................  ......
                                                                        
                            ii. Other Income                            
                                                                        
  6000  Net Income from Noncarrier Operations...................  ......
  6100  Net Income from Nonoperating Property...................  ......
  6200  Interest Income.........................................  ......
  6300  Dividend Income (other than from affiliates)............  ......
  6400  Income from Sinking and Other Funds.....................  ......
  6500  Other Nonoperating Income...............................  ......
  6600  Unusual or infrequent items (credit)....................  ......
    Income from affiliated companies............................  ......
    Dividends...................................................  ......
    Equity in undistributed earnings (losses)...................  ......
                                                                 -------
  Total Other Income............................................  ......
                                                                 =======
    Gross Income................................................  ......
                                                                        
                         iii. Income Deductions                         
                                                                        
  7000  Interest on Long-Term Obligations.......................  ......
  7100  Other Interest Deductions...............................  ......
  7200  Taxes Assumed on Interest...............................  ......
  7300  Amortization of Debt Discount and Expense...............  ......
  7400  Amortization of Premium on Debt--Credit.................  ......
                                                                 -------
    Total income deductions.....................................  ......
  7500  Other Deductions........................................  ......
  7600  Unusual or infrequent items (debit).....................  ......
    Total income deductions.....................................  ......
                                                                 =======
    Income from continuing operations before income taxes.......  ......
  8000  Income taxes on income from continuing operations.......  ......
                                                                 -------
  8040  Provision for deferred taxes............................  ......
    Income (loss) from continuing operations....................  ......
                                                                 =======
                                                                        
                       iv. Discontinued Operations                      
                                                                        
  8100  Income (loss) from operations of discontinued segments          
   (less applicable income taxes of----)........................  ......
  8120  Gain (loss) on disposal of discontinued segments (less          
   applicable income taxes of ----).............................  ......
    Income (loss) before extraordinary items....................       $
                                                                        
               Extraordinary Items and Accounting Changes               
                                                                        
  9010  Extraordinary Items (Net)...............................  ......
  9050  Income taxes on extraordinary items.....................  ......
  9060  Provision for deferred taxes--extraordinary items.......  ......
                                                                 -------
    Total extraordinary items...................................  ......
                                                                 =======
  9070  Cumulative effect of changes in accounting principles           
   (less applicable income taxes of----)........................  ......
    Net Income (or Loss) Transferred to Earned Surplus..........  ......
                                                                        

(49 Stat. 546, as amended, 563, as amended, 564, as amended, 49 U.S.C. 
304, 320, 322, as amended, 49 U.S.C. 12, 20, 304, 320)

[32 FR 20280, Dec. 20, 1967, as amended at 39 FR 33349, Sept. 17, 1974; 
39 FR 34047, Sept. 23, 1974; 40 FR 53253, Nov. 17, 1975; 43 FR 30560, 
July 17, 1978]



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 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 Commission 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.

[[Page 242]]



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. 10321 and 11145, and 5 U.S.C. 553.

    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
Motor carriers and brokers
Water carriers
Household goods freight forwarders
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]



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 
Commission. The company may request a ruling from the Commission 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 Commission 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 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]

[[Page 243]]



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 Commission, 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 
Commission 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.               
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.                                       

[[Page 244]]

                                                                        
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 Equipment                       
                                                                        
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 assigned
                                                                        
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 245]]

                                                                        
    (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.                                           

[[Page 246]]

                                                                        
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.                                                              
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                           
 Interstate Commerce Commission 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                         
     Interstate Commerce Commission 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, Interstate Commerce 
Commission, 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.
1241.14  Annual survey form for certain switching and terminal 
          companies.
1241.15  Railroad classification survey form.

    Authority: Secs. 12, 20, 24 Stat. 383, 386, sec. 201, 54 Stat. 933, 
944; 49 U.S.C. 12, 20, 904, 913.

    Note: The report forms prescribed by part 1241 are available upon 
request from the Office of the Secretary, Interstate Commerce 
Commission, 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 Commission 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 
Commission of said carriers and owners of railroads.

[32 FR 20456, Dec. 20, 1967]

[[Page 247]]



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 Commission 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 Commission.
    (b) Every railway corporation owning but not operating a railway 
used in interstate or foreign commerce shall be required to file with 
the Commission an annual nonoperating report unless relieved therefrom 
under the provisions of rule following.
    (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 Commission 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, Interstate Commerce Commission, 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. 1241.14  Annual survey form for certain switching and terminal companies.

    Commencing with reports for the year ending December 31, 1982, and 
thereafter until further order, certain switching and terminal companies 
shall file the Annual Survey Form for Switching and Terminal Companies. 
The Commission shall designate particular switching and terminal 
companies by an appropriate order. Designated companies shall file the 
Annual Survey Form with the Bureau of Accounts, Interstate Commerce 
Commission, Washington, DC 20423, on or before March 31 of the year 
following the end of the period to which it relates.

[47 FR 47395, Oct. 26, 1982]



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, Interstate Commerce Commission, 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 RAILROADS1--Table of Contents




                          List of Instructions

Sec.
1242.00  Separation of common operating expenses.
---------------------------------------------------------------------------

    1The accounts mentioned in this part refer to and agree with 
part 1201 of this chapter.
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                                 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.

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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).
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).

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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/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. 12, 20.

    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, Interstate Commerce 
Commission, 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

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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 Commission 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.



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

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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 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)

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    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)



Sec. 1242.13  Administration--communications (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

[[Page 253]]

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 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.

[[Page 254]]



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.



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)

[[Page 255]]



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 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

[[Page 256]]

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).

                              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

[[Page 257]]

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.



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.

[[Page 258]]



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.



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.

[[Page 259]]



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).



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

[[Page 260]]

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.



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 
Sec. Sec. 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.

[[Page 261]]



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 Sec. Sec. 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 
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.

    Note: The report forms prescribed by part 1243 are available upon 
request from the Office of the Secretary, Interstate Commerce 
Commission, 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, Interstate Commerce Commission, Washington, DC 20423, within 
30 days after the end of the quarter to which they relate.


(Secs. 12, 20, 24 Stat. 383, 386; 49 U.S.C. 12, 20)

[37 FR 5503, Mar. 16, 1972]



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, in the Bureau of Accounts, 
Interstate Commerce Commission, Washington, DC 20423, within 30 days 
after the end of the quarter to which they relate.


(Secs. 12, 20, 24 Stat. 383, 386; 49 U.S.C. 12, 20)

[37 FR 5503, Mar. 16, 1972]



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. 10303, 10321, 10709, 11144, 11145; 5 U.S.C. 552 
and 553.

    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 Commission 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

[[Page 262]]

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 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 Commission 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

[[Page 263]]

Statement No. 81-1, Procedure for Sampling Waybill Records by Computer, 
issued by the Interstate Commerce Commission, 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 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 Commission.
    (3) All subject railroads using the manual system of reporting shall 
furnish the Commission, 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 Commission 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 Commission.
    (c) When the submitted waybill sample information is returned to the 
submitting railroad for correction, that railroad shall resubmit 
corrected data to the Commission 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 Commission 
may

[[Page 264]]

order that railroad to submit hard copies of the underlying waybills for 
special studies.
    (b) The Commission 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 Commission 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 ICC Waybill 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 ICC 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 ICC 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 ICC 
Waybill Sample subject to the following requirements:
    (i) The Federal agency shall make the information contained in the 
ICC 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 Commission 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 ICC for processing and will so inform 
the requesting party of such referral to the Commission.
    (v) The Federal agency must sign an agreement annually with the 
Commission 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 ICC Waybill Sample in preparing verified 
statements to be submitted in formal proceedings before the ICC and/or 
State Commissions (Commission) subject to the following requirements:
    (i) The ICC 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 Commission.
    (ii) The requestor submits to the ICC a written waybill request that 
complies with Sec. 1244.8(e).
    (iii) All waybill data must be returned to the ICC, and the firm 
must not keep any copies.
    (iv) A transportation practitioner, consulting firm, or law firm 
must submit any evidence drawn from the ICC Waybill Sample to the 
Commission only unless the evidence is aggregated to the level of at 
least three shippers and will prevent the identification of

[[Page 265]]

an individual railroad. Nonaggregated evidence submitted to the 
Commission will be made part of the public record only if the Commission 
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 Commission or appropriate 
authorized official.
    (v) For each Commission proceeding, a firm must sign a 
confidentiality agreement with the ICC 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 Commission, the firm must sign a 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)  ICC 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 ICC 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 ICC 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 ICC 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.

[[Page 266]]

    (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 Interstate Commerce Commission'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, Interstate Commerce 
Commission, Washington, DC 20423.
    (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) Commission 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 Commission 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, Interstate 
Commerce Commission, 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

[[Page 267]]

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, Interstate 
Commerce Commission, 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-digit Standard Transportation Commodity Code (STCC) level or 
greater will be forwarded by the ICC to the Department of Defense's 
Military Traffic Management Command (MTMC). The ICC 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: Sec. 12, 24 Stat. 383, as amended; 49 U.S.C. 12. 
Interpret or apply sec. 20, 24 Stat. 386, as amended; 49 U.S.C. 20.

    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, Interstate Commerce 
Commission, 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 Sec. Sec. 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 Interstate Commerce Commission 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, Interstate Commerce Commission, 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

[[Page 268]]

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 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 Interstate Commerce Commission 
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

[[Page 269]]

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 Commission. 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 270]]



----------------------------------------------------------------------------------------------------------------
                                                                                            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,           ICC 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,           ICC 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      ICC No. 13.          
          Accountants.                                Traveling Auditors, Station                               
                                                      Auditors.                                                 
204....  General and           Supervisors           General Supervisor, Supervisor,      Consolidation of      
          Administrative        responsible for       Chief Clerk, Office Supervisor,      present ICC 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 271]]

                                                                                                                
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 ICC 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   ICC 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 ICC 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.                                                             ICC No. 17.          
209....  Police Officers,      Title is descriptive  Police Officer, Patrolman,           Corresponds with      
          Watchmen and Guards                         Watchman, Guard.                     present ICC 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 ICC 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,   ICC 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   ICC 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.           ICC 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    ICC 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 ICC No. 14.   
          Switchboard                                 Operator.                                                 
          Operators.                                                                                            
217....  Building and Office   Miscellaneous         Elevator Operator, Elevator          Consolidates present  
          Attendants.           occupations           Starter, Janitor, Cleaner, Porter.   ICC Nos. 16 and 26.  
                                associated with                                                                 
                                office building                                                                 
                                functions.                                                                      
218....  Messengers and        Title is descriptive  Messenger, Office Person...........  Present ICC No. 15.   
          Office Persons.                                                                                       
219....  Motor Vehicle         Occupations           Truck Driver, Bus Driver, Driver,    Consolidates present  
          Operators.            associated with       Chauffeur.                           ICC Nos. 24 and 25.  
                                automobile and                                                                  
                                truck driving.                                                                  
300....   Maintenance of Way                                                                                    
             and Structures                                                                                     

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301....  Supervisors,          Occupations with      Roadmaster, Division Roadmaster,     Corresponds with      
          Maintenance of Way,   supervisor            Supervisor Track, Supervisor         present ICC 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 ICC 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.                                                                    ICC No. 29 with      
                                                                                           bridge and building  
                                                                                           portion of present   
                                                                                           ICC No. 39.          
304....  Bridge and Building   Title is descriptive  Carpenter..........................  Corresponds with      
          Carpenters.                                                                      present ICC No. 30.  
305....  Bridge and Building   Title is descriptive  Ironworker.........................  Corresponds with      
          Ironworkers.                                                                     present ICC No. 31.  
306....  Bridge and Building   Title is descriptive  Painter, Sign Painter..............  Corresponds with      
          Painters.                                                                        present ICC No. 32.  
307....  Masons, Bricklayers,  Title is descriptive  Mason, Bricklayer, Plasterer,        Corresponds with      
          Plasterers, and                             Plumber, Operator, Grinder, Welder   present ICC 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 ICC 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 ICC No. 43.  
          Building Department                                                                                   
          Laborers.                                                                                             
310....  Track Gang Foremen    Title is descriptive  Gang Foreman, Assistant Foreman....  Corresponds with      
          (Extra Gang work                                                                 present ICC No. 38.  
          train laborers).                                                                                      
311....  Gang or Section       Title is descriptive  Gang Foreman, Assistant Foreman,     Corresponds with      
          Foreman.                                    Section Foreman.                     present ICC No. 40.  
312....  Extra Gang Laborers.  Title is descriptive  Trackman, Fence Laborer............  Corresponds with      
                                                                                           present ICC No. 41.  
313....  Section Laborers....  Title is descriptive  Trackman, Track and Roadway Section  Corresponds with      
                                                      Laborer.                             present ICC No. 42.  
314....  Machine Operators...  Title is descriptive  Craneman, Portable Equipment         Consolidates present  
                                                      Engineer, Portable Equipment         ICC 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.     ICC No. 45 with      
          Signals.                                                                         communications and   
                                                                                           signals occupations  
                                                                                           included in present  
                                                                                           ICC No. 39.          
316....  Signalmen and Signal  Title is descriptive  Signalman, Signal Maintainer.......  Corresponds with      
          Maintainers.                                                                     present ICC No. 46.  
317....  Linemen and           Communications        Electrical Worker (Lineman),         Corresponds with      
          Groundmen and         equipment             Electrical Worker (Groundman)        present ICC 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 ICC No. 48.  
          Signal Maintainers.                                                                                   
319....  Signal Helpers and    Title is descriptive  Signalman Helper, Signal Maintainer  Corresponds with      
          Signal Maintainer                           Helper.                              present ICC No. 49.  
          Helpers.                                                                                              
320....  Camp Car Cooks......  Occupations engage    Camp Car Cook, Camp Car Helper.....  Corresponds with part 
                                in food service in                                         of present ICC No.   
                                camp cars.                                                 97.                  
400....     Maintenance of                                                                                      
             Equipment and                                                                                      
                 Stores                                                                                         

[[Page 273]]

                                                                                                                
401....  Supervisors and       Occupations with      General Foreman Shop, General        Corresponds with      
          General Foremen,      supervisory           Foreman Enginehouse, General         present ICC 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 ICC 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 ICC 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 ICC 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
                                                                                           ICC No. 11.          
406....  Gang Foremen,         Title is descriptive  Gang Foreman.......................  Consolidates present  
          Maintenance of                                                                   ICC Nos. 53 and 68.  
          Equipment.                                                                                            
407....  Blacksmiths.........  Title is descriptive  Blacksmith.........................  Corresponds with      
                                                                                           present ICC No. 54.  
408....  Boilermakers........  Title is descriptive  Boilermaker........................  Corresponds with      
                                                                                           present ICC No. 55.  
409....  Carmen (Freight)....  Repair and inspect    Car Repairmen, Car Inspector,        Corresponds with      
                                freight cars.         Carman, Painter.                     present ICC No. 57.  
410....  Carmen (Other)......  Title is descriptive  Carmen.............................  Corresponds with      
                                                                                           present ICC No. 56.  
411....  Electrical Workers    Electricians........  Electrician, Electrical Worker.....  Corresponds with      
          (A).                                                                             present ICC No. 58.  
412....  Electrical Workers    Electrical workers--  Crane Operator, Load Dispatcher,     Corresponds with      
          (B).                  occupations           Power Station Operator, Assistant    present ICC 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 ICC No. 60.  
                                specialized in        Operator (electrical).                                    
                                heavy equipment                                                                 
                                operating at coal,                                                              
                                grain, and ore                                                                  
                                docks.                                                                          
414....  Machinists..........  Title is descriptive  Machinist..........................  Corresponds with      
                                                                                           present ICC No. 61.  
415....  Sheet Metal Workers.  Title is descriptive  Sheet Metal Worker.................  Corresponds with      
                                                                                           present ICC No. 63.  
416....  Skilled Trades,       Title is descriptive  Helper.............................  Corresponds with      
          Helpers,                                                                         present ICC No. 64.  
          Maintenance of                                                                                        
          Equipment and                                                                                         
          Stores.                                                                                               
417....  Apprentices,          Title is descriptive  Apprentice, Helper Apprentice......  Consolidates present  
          Maintenance of                                                                   ICC Nos. 65 and 66.  
          Equipment and                                                                                         
          Stores.                                                                                               
418....  Coach Cleaners......  Title is descriptive  Coach Cleaner......................  Corresponds with      
                                                                                           present ICC No. 67.  
419....  Laborers: Shops,      Title is descriptive  Laborer............................  Consolidates present  
          Enginehouses, and                                                                ICC Nos. 70 and 71.  
          Power Plants.                                                                                         
420....  Gang Foremen,         Title is descriptive  Gang Foremen.......................  Corresponds with      
          Materials and                                                                    present ICC No. 69.  
          Stores.                                                                                               
421....  Equipment Operators   Title is descriptive  Laborer, Materials Handler,          Corresponds with      
          and General                                 Equipment Operators, Machine         present ICC No. 72,  
          Laborers, Materials                         Operators.                           plus part of ICC No. 
          and Stores.                                                                      24.                  
422....  Stationary Engineers  Title is descriptive  Chief Engineer (Steam Plant)         Corresponds with      
                                                      Engineer, Stationary Engineer.       present ICC No. 73.  
423....  Stationary Firemen..  Title is descriptive  Stationary Fireman, Power Equipment  Corresponds with      
                                                      Operator Helper, Oiler.              present ICC No. 74.  
500....     Transportation,                                                                                     
            Other Than Train                                                                                    
               and Engine                                                                                       
501....  Transportation        Occupational          Chief Train Dispatcher, Supervisor   Corresponds with      
          Supervisor and        directly              Train Operations, Transportation     present ICC No. 75;  
          Chief Train           supervising train     Supervisor, Supervisor Train         adds new titles.     
          Dispatcher.           operation.            Operations, Supervisor Locomotive                         
                                                      and Car Distribution, Assistant                           
                                                      Chief Train Dispatcher.                                   

[[Page 274]]

                                                                                                                
502....  Train Dispatchers...  Title is descriptive  Train Dispatcher...................  Corresponds with      
                                                                                           present ICC No. 76.  
503....  Station, Freight and  Occupations with      Supervising Station Agent,           Consolidates present  
          Passenger Agents.     responsibility for    Assistant Supervising Station        ICC 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 ICC No. 81.  
                                                      Operator, Wire Chief.                                     
505....  Clerk Operators,      Title is descriptive  Clerk Operator, Block Operator,      Consolidates present  
          Towerman, Train                             Operator, Towerman, Train            ICC Nos. 77, 82 and  
          Directors.                                  Directors.                           83.                  
506....  Station Masters and   Title is descriptive  Stationmaster, Assistant             Consolidates present  
          Assistants,                                 Stationmaster, Supervising Baggage   ICC 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 ICC 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.                             ICC Nos. 88 and 89.  
          Foremen, Stations,                                                                                    
          Warehouses, Grain                                                                                     
          Elevators, and                                                                                        
          Docks.                                                                                                
509....  Gang Foremen,         Title is descriptive  Gang Foreman.......................  Corresponds with      
          Stations,                                                                        present ICC No. 90.  
          Warehouses, Grain                                                                                     
          Elevators and Docks.                                                                                  
510....  Grain Elevator, and   Title is descriptive  Laborer............................  Consolidates present  
          Dock Laborers.                                                                   ICC Nos. 93 and 94.  
511....  Station, and          Title is descriptive  Loader, Sealer.....................  Corresponds with      
          Warehouse Laborers.                                                              present ICC No. 91.  
512....  Truckers (Station,    Title is descriptive  Trucker............................  Corresponds with      
          Warehouse and                                                                    present ICC No. 92.  
          Platforms).                                                                                           
513....  Food and Lodging      Occupations with      Manager Lodging House, Restaurant    Corresponds with      
          Manager,              responsibility for    Manager, Dining Car Supervisor,      present ICC 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 ICC No. 99.  
          Inspectors.                                 Inspector, Baggage Inspector.                             
515....  Waiters and Kitchen   Title is descriptive  Waiter-in-charge, Waiter...........  Corresponds with      
          Helpers (Restaurant                                                              present ICC No. 97.  
          and Dining Car).                                                                                      
516....  Chefs and Cooks       Title is descriptive  Chef, Cook.........................  Corresponds with      
          (Restaurant and                                                                  present ICC 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 ICC 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.                          ICC Nos. 100 and 101.
                                than train service                                                              
                                and dining car                                                                  
                                operation.                                                                      
519....  Bridge Operators and  Title is descriptive  Bridge Operator....................  Corresponds with      
          Helpers.                                                                         present ICC No. 102. 
520....  Bridge and Crossing   Title is descriptive  Bridge Flagman, Crossing Gateman...  Corresponds with      
          Flagmen and Gatemen.                                                             present ICC 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.                                   

[[Page 275]]

                                                                                                                
522....  Crew Dispatchers....  Title is descriptive  Crew Dispatcher, Crew Caller.......  New classification.   
523....  Yardmasters and       Title is descriptive  Yardmaster, Assistant Yardmaster...  Consolidates present  
          Assistant                                                                        ICC No. 105 and 106. 
          Yardmasters.                                                                                          
600....     Transportation,                                                                                     
            Train and Engine                                                                                    
601....  Switchtenders.......  Title is descriptive  Switchtender.......................  Corresponds to present
                                                                                           ICC 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 ICC  
          Ground Service        crew.                                                      No. 119; adds new    
          Employees.                                                                       titles.              
603....  Outside Hostlers....  Title is descriptive  Outside Hostler....................  Corresponds to present
                                                                                           ICC No. 108.         
604....  Outside Hostler       Title is descriptive  Outside Hostler Helper.............  Corresponds to present
          Helpers.                                                                         ICC No. 110.         
605....  Inside Hostler......  Title is descriptive  Inside Hostler.....................  Corresponds to present
                                                                                           ICC No. 109.         
606....  Road Passenger        Title is descriptive  Passenger Conductor................  Corresponds to present
          Conductors.                                                                      ICC No. 111.         
607....  Assistant Road        Title is descriptive  Assistant Passenger Conductor,       Corresponds to present
          Passenger                                   Ticket Collector.                    ICC 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).      ICC No. 113.         
          Freight).                                                                                             
609....  Road Freight          Title is descriptive  Freight Conductor, Work Train        Corresponds to present
          Conductors (Local                           Conductor, (paid local rate).        ICC No. 114.         
          and Way Freight).                                                                                     
610....  Road Passenger        Title is descriptive  Baggageperson......................  Corresponds to present
          Baggageperson.                                                                   ICC No. 115.         
611....  Road Passenger        Title is descriptive  Passenger Brakeman, Passenger        Corresponds to present
          Brakemen and                                Flagman.                             ICC No. 116.         
          Flagmen.                                                                                              
612....  Road Freight          Title is descriptive  Freight Brakeman, Freight Flagman,   Corresponds to present
          Brakemen and                                Work Train Brakeman (paid through    ICC 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     ICC No. 118.         
          Flagmen (Local and                          rate).                                                    
          Way Freight).                                                                                         
614....  Yard Conductors and   Title is descriptive  Yard Conductor, Yard Foreman.......  Corresponds to present
          Yard Foremen.                                                                    ICC 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.                                                                    ICC No. 120; adds new
                                                                                           titles.              
616....  Road Passenger        Title is descriptive  Passenger Engineer, Motorman,        Corresponds to present
          Engineers and                               Operator.                            ICC No. 121.         
          Motormen.                                                                                             
617....  Road Freight          Title is descriptive  Freight Engineer, Work Train         Corresponds to present
          Engineers (Through                          Engineer, (paid through rate).       ICC No. 122.         
          Freight).                                                                                             
618....  Road Freight          Title is descriptive  Freight Engineer, Work Train         Corresponds to present
          Engineers (Local                            Engineer, (paid local rate).         ICC No. 123.         
          and Way Freight).                                                                                     
619....  Yard Engineers......  Title is descriptive  Yard Engineer......................  Corresponds to present
                                                                                           ICC No. 124.         
620....  Road Passenger        Title is descriptive  Passenger Fireman..................  Corresponds to present
          Firemen and Helpers.                                                             ICC No. 125.         
621....  Road freight Firemen  Title is descriptive  Freight Fireman....................  Corresponds to present
          and Helpers                                                                      ICC No. 126.         
          (Through Freight).                                                                                    
622....  Road Freight Firemen  Title is descriptive  Freight Fireman....................  Corresponds to present
          and Helpers (Local                                                               ICC No. 127.         
          and Way Freight).                                                                                     
623....  Yard Firemen and      Title is descriptive  Yard Fireman.......................  Corresponds to present
          Helpers.                                                                         ICC No. 128.         
----------------------------------------------------------------------------------------------------------------


[47 FR 53868, Nov. 30, 1982, as amended at 50 FR 947, Jan. 8, 1985]                                             
                                                                                                                


[[Page 276]]



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 277]]

                                                                        
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 278]]

                                                                        
  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 279]]

                                                                        
  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 280]]

                                                                        
  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: 5 U.S.C. 553; 49 U.S.C. 10321.



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, Interstate Commerce Commission, 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, Interstate 
Commerce Commission, 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, Interstate Commerce 
Commission, Washington, DC 20423.



                          Subpart A--Railroads

    Authority: 5 U.S.C. 553; 49 U.S.C. 10321, 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 
Sec. Sec. 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:

[[Page 281]]

Number of carloads.
Number of tons (2,000 pounds).
    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 282]]

    (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, Interstate Commerce 
Commission, 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 Commission.

[32 FR 20466, Dec. 20, 1967, as amended at 47 FR 6881, Feb. 17, 1982]



                        Subpart B--Commodity Code

    Authority: Sec. 12, 24 Stat. 383, as amended, sec. 20, 24 Stat. 386, 
as amended, sec. 204, 49 Stat. 546, as amended, sec. 304, 54 Stat. 933, 
sec. 220, 49 Stat. 563, as amended, sec. 313, 54 Stat. 944, as amended; 
49 U.S.C. 12, 20, 304, 320, 904, 913; 49 U.S.C. 10321 and 5 U.S.C. 553.



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 Commission, 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.        

[[Page 283]]

                                                                        
01318                                   Onions, dry.                    
0133                                  Leafy fresh vegetables.           
01334                                   Celery.                         
01335                                   Lettuce.                        
0134                                  Dry ripe vegetable seeds, etc.    
                                   (except artifically dried).          
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.            

[[Page 284]]

                                                                        
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.              
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.                       

[[Page 285]]

                                                                        
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.                               
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.                   

[[Page 286]]

                                                                        
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.                    
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]



PART 1249--REPORTS OF MOTOR CARRIERS--Table of Contents




Sec.
1249.1  Annual and quarterly reports of motor carriers of property, 
          motor carriers of household goods, and dual authority 
          carriers.
1249.2  Classification of carriers--motor carriers of property, 
          household goods carriers, and dual property carriers.
1249.3  Classification of carriers--motor carriers of passengers.
1249.4  Annual and quarterly reports of Class I carriers of passengers.
1249.5  Records.
1249.11  Quarterly reports of passenger revenues, expenses, and 
          statistics.

    Authority: 49 U.S.C. 11142 and 11145 and 5 U.S.C. 553.

    Note: The report forms prescribed by part 1249 are available upon 
request from the Office of the Secretary, Interstate Commerce 
Commission, Washington, DC 20423.



Sec. 1249.1  Annual and quarterly reports of motor carriers of property, motor carriers of household goods, and dual authority carriers.

    (a) Annual Report Forms M-1 and M-2. All class I common and contract 
carriers of property, including household goods and dual authority motor 
carriers, shall file Motor Carrier Annual Report Form M-1. All class II 
common and contract carriers of property, including household goods and 
dual authority motor carriers, shall file Motor Carrier Annual Report 
Form M-2. The annual reports shall be filed on or before March 31 of the 
year following the year to which they relate. Class III motor carriers 
of property shall be exempt from filing any reports. For classification 
criteria, See Sec. 1249.2.
    (b) Quarterly Report Form QFR. All class I common motor carriers of 
property and class I household goods motor carriers shall complete and 
file motor carrier Quarterly Report Form QFR (Form QFR). The quarterly 
accounting periods shall end on March 31, June 30, September 30, and 
December 31. The

[[Page 287]]

quarterly reports shall be filed within 30 calendar days after the end 
of the reporting quarter.
    (c) The quarterly and annual reports shall be filed in duplicate 
with the Office of Economics, Interstate Commerce Commission, 
Washington, DC 20423. Copies of these forms may be obtained from the 
Office of Economics.

[59 FR 5110, Feb. 3, 1994]



Sec. 1249.2  Classification of carriers--motor carriers of property, household goods carriers, and dual property carriers.

    (a) Common and contract motor carriers of property subject to the 
Interstate Commerce Act are grouped into the following three classes:
    Class I. Carriers having annual carrier operating revenues 
(including interstate and intrastate) of $10 million or more after 
applying the revenue deflator formula in Note A.
    Class II. Carriers having annual carrier operating revenues 
(including interstate and intrastate) of at least $3 million but less 
than $10 million after applying the revenue deflator formula in Note A.
    Class III. Carriers having annual carrier operating revenues 
(including interstate and intrastate) of less than $3 million after 
applying the revenue deflator formula in Note A.
    (b)(1) The class to which any carrier belongs shall be determined by 
annual carrier operating revenues (excluding revenues from private 
carriage, compensated intercorporate hauling, and leasing vehicles with 
drivers to private carriers) after applying the revenue deflator formula 
in Note A. Upward and downward classification will be effected as of 
January 1 of the year immediately following the third consecutive year 
of revenue qualification.
    (2) Any carrier which begins new operations by obtaining operating 
authority not previously held or extends its existing authority by 
obtaining additional operating rights shall be classified in accordance 
with a reasonable estimate of its annual carrier operating revenues 
after applying the revenue deflator formula shown in Note A.
    (3) When a business combination occurs such as a merger, 
reorganization, or consolidation, the surviving carrier shall be 
reclassified effective as of January 1 of the next calendar year on the 
basis of the combined revenues for the year when the combination 
occurred after applying the revenue deflator formula shown in Note A.
    (4) Carriers shall notify the Commission of any change in 
classification and any change in annual operating revenues that causes 
them to exceed the class I limit by writing to the Office of Economics, 
Interstate Commerce Commission, Washington, DC 20423. In unusual or 
extraordinary extenuating circumstances, where the classification 
process will unduly burden the carrier, such as partial liquidation, or 
curtailment or elimination of contracted services, the carrier may 
request from the Commission a waiver or an exception from these 
regulations. This request shall be in writing, specifying the conditions 
justifying the waiver or exception. The Commission shall notify the 
carriers of any change in classification.
    (5) Carriers not required to file an Annual Report (Form M-1 or Form 
M-2) may be required to file the Annual Carrier Classification Survey 
Form. All carriers will be notified of any classification changes.
    (c) For classification purposes, the Commission shall publish in the 
Federal Register annually an index number which shall be used to adjust 
gross annual operating revenues. This index number (deflator) shall be 
based on the Producers Price Index of Finished Goods. Its intended use 
is to eliminate the effects of inflation from the classification 
process. See Note A that follows:

    Note A: Each carrier's operating revenues will be deflated annually 
using the Producers Price Index (PPI) of Finished Goods before comparing 
those revenues with the dollar revenue limits prescribed in paragraph 
(a) of this section. The PPI is published monthly by the Bureau of Labor 
Statistics. The formula to be applied is as follows:


[[Page 288]]


[GRAPHIC] [TIFF OMITTED] TC03MR91.051

[52 FR 10383, Apr. 1, 1987, as amended at 59 FR 5111, Feb. 3, 1994; 59 
FR 49848, Sept. 30, 1994]



Sec. 1249.3  Classification of carriers--motor carriers of passengers.

    (a) Common and contract carriers of passengers subject to the 
Interstate Commerce Act are grouped into the following two classes:
    Class I--Carriers having average annual gross transportation 
operating revenues (including interstate and intrastate) of $5 million 
or more from passenger motor carrier operations after applying the 
revenue deflator formula as shown in the Note.
    Class II--Carriers having average annual gross transportation 
operating revenues (including interstate or intrastate) of less than $5 
million from passenger motor carrier operations after applying the 
revenue deflator formula as shown in the Note.
    (b)(1) The class to which any carrier belongs shall be determined by 
annual carrier operating revenues after applying the revenue deflator 
formula as shown in the Note. Upward and downward reclassification will 
be effected as of January 1 of the year immediately following the third 
consecutive year of revenue qualification.
    (2) Any carrier which begins new operations (obtains operating 
authority not previously held) or extends its existing authority 
(obtains additional operating rights) shall be classified in accordance 
with a reasonable estimate of its annual carrier operating revenues 
after applying the revenue deflator formula shown in the Note.
    (3) When a business combination occurs, such as a merger, 
reorganization, or consolidation, the surviving carrier shall be 
reclassified effective as of January 1 of the next calendar year on the 
basis of the combined revenues for the year when the combination 
occurred after applying the revenue deflator formula shown in the Note.
    (4) Carriers shall notify the Commission of any change in 
classification or when their annual operating revenues exceed the Class 
I limit by writing to the Bureau of Accounts, Interstate Commerce 
Commission, Washington, DC 20423. In unusual circumstances where the 
classification regulations and reporting requirements will unduly burden 
the carrier, the carrier may request from the Commission a waiver from 
these regulations. This request shall be in writing specifying the 
conditions justifying the waiver. The Commission then shall notify 
carriers of any change in classification or reporting requirements.
    (c) For classification purposes, the Commission shall publish in the 
Federal Register annually an index number which shall be used for 
adjusting gross annual operating revenues. The index number (deflator) 
is based on the Producer Price Index of Finished Goods and is used to 
eliminate the effects of inflation from the classification process.

    Note: Each carrier's operating revenues will be deflated annually 
using the Producers Price Index (PPI) of Finished Goods before comparing 
them with the dollar revenue limits prescribed in paragraph (a) of this 
section. The PPI is published monthly by the Bureau of Labor Statistics. 
The formula to be applied is as follows:
[GRAPHIC] [TIFF OMITTED] TC03MR91.052


[[Page 289]]


[53 FR 4029, Feb. 11, 1988]



Sec. 1249.4  Annual and quarterly reports of Class I carriers of passengers.

    (a) All Class I motor carriers of passengers shall complete and file 
Motor Carrier Quarterly and Annual Report Form MP-1 for Motor Carriers 
of Passengers (Form MP-1). Other than Class I carriers are not required 
to file Form MP-1.
    (b) Motor Carrier Quarterly and Annual Report Form MP-1 shall be 
used to file both quarterly and annual selected motor carrier data. The 
annual accounting period shall be based either (1) on the 31st day of 
December in each year, or (2) an accounting year of thirteen 4-week 
periods ending at the close of the last 7 days of each calendar year. A 
carrier electing to adopt an accounting year of thirteen 4-week periods 
shall file with the Commission a statement showing the day on which its 
accounting year will close. A subsequent change in the accounting period 
may not be made except by authority of the Commission. The quarterly 
accounting period shall end on March 31, June 30, September 30, and 
December 31. The quarterly report shall be filed within 30 days after 
the end of the reporting quarter. The annual report shall be filed on or 
before March 31 of the year following the year to which it relates.
    (c) The quarterly and annual report shall be filed in duplicate to 
The Bureau of Accounts, Interstate Commerce Commission, Washington, DC 
20423. Copies of Form MP-1 may be obtained from the Bureau of Accounts.

[52 FR 20400, June 1, 1987]



Sec. 1249.5  Records.

    Books, records and carrier operating documents shall be retained as 
prescribed in 49 CFR part 1220, Preservation of Records.

[52 FR 10383, Apr. 1, 1987]



Sec. 1249.11  Quarterly reports of passenger revenues, expenses, and statistics.

    Commencing with reports for the quarter ended March 31, 1968, and 
for subsequent quarters thereafter, until further order, all class I 
common and contract motor carriers of passengers, as defined in 
Sec. 1240.4 of this chapter, subject to part II of the Interstate 
Commerce Act, shall compile and file quarterly reports in accordance 
with motor carrier Quarterly Report of Revenues, Expenses, and 
Statistics (class I carriers of passengers), form QPA. Such quarterly 
reports shall be filed in duplicate in the Office of the Bureau of 
Accounts, Interstate Commerce Commission, Washington, DC 20423, within 
30 days after the close of the period to which it relates.

[43 FR 46975, Oct. 12, 1978]



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: Sec. 5a(3), 62 Stat. 472; 49 U.S.C. 5b; sec. 5b(3), 90 
Stat 43; 49 U.S.C. 5c.

    Note: The report forms prescribed by part 1253 are available upon 
request from the Office of the Secretary, Interstate Commerce 
Commission, 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

[[Page 290]]

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 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 Commission.
    (c) All rate bureaus are required to (1) advise the Commission of 
any change in legal address by notifying the Office of the Secretary and 
(2) submit information to the Commission 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, Interstate Commerce Commission, 
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 Interstate Commerce Commission 
Security Regulations to the extent that they affect the general public.



Sec. 1280.2  Policy.

    It is the policy of the Interstate Commerce Commission 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 Commission does not have authority of its own to classify any of 
its internally generated documents. The only documents handled by the 
Commission 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

[[Page 291]]

Compliance and Consumer Assistance, who is also Emergency Coordinator 
for the Commission. 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 
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 ICC 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 Commission'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 ICC 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

[[Page 292]]

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 Commission 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 293]]





              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 294]]

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 Sec. Sec. 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 Sec. Sec. 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 295]]



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: Sec. 28, 41 Stat. 999, as amended; 46 U.S.C. 484.

    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 Commission.



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 Commission, 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 Commission.



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

[[Page 296]]

to the transportation of commodities other than water, gas, or oil.
    (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 additional information is received, the carrier 
must set the rate and related service terms, and relay them to the 
requester, as soon as possible, but no later than 10 business days. The 
time period for response set forth in this section will not apply when 
the parties agree to a different time period. A pipeline carrier may, at 
its option, require that requests submitted under this section be in 
writing or electronic form, or the carrier may permit oral requests.



Sec. 1305.4  Notice requirement.

    (a) A pipeline 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 requested, under Sec. 1305.2 or Sec. 1305.3, the affected 
rates or service terms; or
    (2) Have made arrangements with the carrier for a shipment that 
would be subject to the increased rates or changed service terms.
    (b) The notice required by this section may be provided either in 
writing or in electronic form, as agreed to by the parties. If the 
parties cannot agree, the information is to be provided in electronic 
form where both parties have the requisite capabilities; otherwise, it 
is to be provided in writing.

[[Page 297]]

    (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 
increase in rates or charges or the change in service terms.



PART 1312--REGULATIONS FOR THE PUBLICATION, POSTING AND FILING OF TARIFFS, SCHEDULES AND RELATED DOCUMENTS OF MOTOR, PIPELINE AND WATER CARRIERS, AND HOUSEHOLD GOODS FREIGHT FORWARDERS--Table of Contents





Sec.
1312.1  Introduction and general provisions.
1312.2  Applications for special tariff authority.
1312.3  Size of paper and where to send tariff publications and other 
          documents.
1312.4  Filing tariffs.
1312.5  Posting requirements.
1312.6  Furnishing copies of tariff publications.
1312.7  Form and printing.
1312.8  ICC tariff designations.
1312.9  Codes for identification of places.
1312.10  Powers of attorney, concurrences, transfer of agent. [See also 
          Sec. 1312.4(d)]
1312.11  Tariffs issued by joint agents not applicable to contract 
          carriers or household goods freight forwarders.
1312.12  Title page of original tariffs.
1312.13  Contents of tariffs.
1312.14  Statement of rates and fares (see also Sec. 1312.41).
1312.15  Routing not applicable to household goods freight fowarders or 
          contract carriers.
1312.16  Sectional tariffs.
1312.17  Amendments.
1312.18  Supplements.
1312.19  Cancellation of tariff and transfer of provisions.
1312.20  Transfer of operations--change in name and control.
1312.21  Suspended matter.
1312.22  Rates or other provisions prescribed by the Commission.
1312.23  Expiration dates.
1312.24  Tariffs listing carriers' operating authority applicable to 
          motor carriers of property.
1312.25  Participating carrier tariffs.
1312.26  Rate basis tariffs.
1312.27  Classification, exceptions, rules, dangerous articles and 
          station list tariffs.
1312.28  Accessorial, terminal and other services.
1312.29  Rates and liability based on value provisions.
1312.30  Distance rates.
1312.31  Commodity rates determined by the use of rate base numbers.
1312.32  Application of rates from or to intermediate points.
1312.33  Class rates from or to unnamed points applicable only to motor 
          carriers of property.
1312.34  Continuous service rates not applicable to passenger carriers.
1312.35  Time-volume rates not applicable to passenger carriers.
1312.36  Seasonal water rates.
1312.37  Export and import traffic and joint rates with ocean carriers.
1312.38  Substitution of service.
1312.39  Miscellaneous provisions which may be filed on less than 
          statutory notice.
1312.40  Claims rules.
1312.41  Range tariffs.

    Authority: 5 U.S.C. 553; 49 U.S.C. 721, 13701, 13702, and 13521.

    Source: 49 FR 38615, Oct. 1, 1984, unless otherwise noted.



Sec. 1312.1  Introduction and general provisions.

    (a) Purpose. Tariffs are for the information and the use of the 
general public. They shall be published in a manner that ensures they 
are readable and that their terms and conditions are easy to understand 
and apply. The Commission reserves the right to reject or strike any 
tariff publication or other document not in compliance with law, or to 
require that it be modified, corrected or reissued. Rejection or 
striking of tariffs will be handled consistent with due process of law.
    (b) Definitions. For the purpose of this part--
    (1) Act means the Interstate Commerce Act, as amended.
    (2) Agent means a person, association or corporation authorized to 
publish and file rates and provisions for a carrier's account in tariffs 
published in the agent's name.
    (3) Agent tariff means a tariff filed in the name of an agent.
    (4) Basing fare means a fare used for constructing a through fare 
for transportation from one point to another over a route for which no 
through, one-factor fare (other than basing fare) is published.
    (5) Bound tariff means a tariff consisting of two or more sheets 
bound at

[[Page 298]]

the left edge in pamphlet or book form or a single-sheet tariff.
    (6) Carrier means a common carrier, contract carrier or household 
goods freight forwarder subject to the Act. It also means an ocean 
carrier participating in joint tariff provisions with carriers subject 
to the Act.
    (7) Carrier's tariff means a tariff filed in the name of a carrier.
    (8) Class I, Class II, and Class III, carriers are as defined in the 
Commission's Uniform System of Accounts part 1240 of this title.
    (9) Classification means a publication containing a list of 
commodities, the classes to which they are assigned for the purpose of 
applying class rates, and governing rules and regulations.
    (10) Class rate means a rate which applies to commodities according 
to the class assigned in a classification, a tariff of exceptions to a 
classification, or in a class rate tariff.
    (11) Class tariffs are those which contain class rates.
    (12) Commission means the Interstate Commerce Commission.
    (13) Commodity rate means a rate published to apply to commodities 
specifically named or described in the tariff in which the rate is 
published or in a separate commodity list.
    (14) Commodity tariffs are those which contain commodity rates.
    (15) Common carrier means all common carriers and household goods 
freight forwarders subject to the Act.
    (16) Commutation fare means a charge for a specified number of trips 
(more than a single round trip) or for an unlimited number of trips 
within a certain period of time, which, on a per trip basis is less than 
the normal rate.
    (17) Item means a tariff provision of any kind bearing an item 
number designation.
    (18) Joint rate means a rate that applies over the lines or routes 
of two or more carriers made by an agreement between the carriers, 
effected by a concurrence or power of attorney.
    (19) Joint tariffs are those which contain joint rates.
    (20) Local rate means a rate that applies over the lines or routes 
of one carrier only.
    (21) Local tariffs are those which contain local rates.
    (22) Looseleaf page amendment means a single sheet published as an 
amendment (not a supplement) to a looseleaf tariff.
    (23) Looseleaf tariff means a tariff consisting of looseleaf pages.
    (24) Motor common carriers of property means all motor common 
carriers of property subject to the Act, except passenger carriers 
having authority to transport property in the same vehicle with the 
passengers.
    (25) Ocean carrier means a vessel-operating common carrier by water 
regulated by the Federal Maritime Commission, and engaged in foreign 
commerce as defined in the Shipping Act of 1916.
    (26) Original tariff means the tariff as originally filed excluding 
amendments.
    (27) Post refers to the public availability of filed tariffs.
    (28) Proportional rate means a rate published to apply only to 
traffic having a prior movement, a subsequent movement, or both.
    (29) Proportional tariffs are tariffs containing proportional rates.
    (30) Rate means a rate, fare or charge.
    (31) Round-trip excursion means the transportation of passengers by 
motor vehicle on an excursion between points on the regularly operated 
route of a common carrier, but does not embrace special or charter 
operations.
    (32) Segment means a separate tariff provision of any kind set apart 
by use of a number or letter designation (other than an item 
designation), or by employment of line or space separations.
    (33) Suburban service means the transportation of passengers (over a 
regular route, in the case of motor common carriers) between places or 
communities, the limits of which are not more than 75 air miles apart.
    (34) Supplement means a single sheet, or two or more sheets bound at 
the left edge in pamphlet or book form, identified as a supplement and 
published to amend or cancel a tariff.
    (35) Tariff means a publication containing rates, classification 
ratings, rules, regulations, or other provisions, as amended, filed in a 
carrier's or an agent's name. (The term does not include rate tenders or 
quotations issued

[[Page 299]]

under section 10721 of the Act (see part 1330 of this title)).
    (36) Tariff publication means an original tariff, a supplement, or a 
looseleaf page amendment.
    (37) Through rate means the total rate from point of origin to 
destination. It may be a local rate, a joint rate, or a combination of 
separately established rates.
    (c) Application. (1) These regulations govern the construction, 
publication, filing, and posting of --
    (i) Any tariff filed under the Act;
    (ii) Any tariff which contains a through route and a joint rate, or 
a provision governing the application of a through route or joint rate, 
over the lines of a common carrier on the one hand, and a nonvessel or 
vessel operating ocean carrier, on the other hand, for the 
transportation of property between any place in the United States and 
any place in a foreign country.
    (2) Some of the regulations in this part do not apply to tariffs of 
all types of carriers. These regulations state either that they do not 
apply to tariffs of specific types of carriers or that they apply only 
to tariffs of specific types of carriers.
    (3) These regulations are to be liberally construed. The absence of 
specific approval of particular practices or provisions does not imply 
disapproval of them.
    (4) Special permission to depart from any of these rules may be 
requested. See Sec. 1312.2.
    (d) Intrastate provisions. (1) Tariffs may include provisions having 
intrastate application if they are distinguished from the interstate 
provisions. Tariffs may be identified as joint filings with State 
regulatory bodies.
    (2) Rates to be used between points in one State, which are also to 
be used in making combination through rates for interstate shipments, 
shall be filed with the Commission and posted for public inspection, and 
they may be changed only in accordance with the provisions of the Act.
    (e) Information-only provisions. Provisions for information purposes 
only may be included in a tariff. They must be clearly marked. Such 
material may include tariffs covering transportation not subject to 
economic regulation by the Commission, and advertising and promotional 
material.
    (f) Carrier liability. The tender of a tariff and its receipt by the 
Commission does not relieve the carriers of liability for violations of 
the Act, other laws or the Commission's regulations.

[49 FR 38615, Oct. 1, 1984, as amended at 51 FR 44297, Dec. 9, 1986]



Sec. 1312.2  Applications for special tariff authority.

    (a) Applications may be filed. Applications for special tariff 
authority to depart from the regulations of this part may be filed if in 
accordance with the provisions of this section.
    (b) Authority will not be issued to modify formal decisions. Special 
tariff authority will not be issued to modify a formal decision of the 
Commission. Any request to modify a formal decision shall be filed in 
accordance with the Commission's Rules of Practice (Subchapter B of this 
chapter).
    (c) Who may file. Applications may only be filed by the carrier(s) 
or agent(s) who has authority to file the proposed tariff publication 
for which relief is requested. An agent or carrier may request relief 
which would have application broader than the carrier's account.
    (d) Payment of fee. Payment of the fee in the amount and manner 
required by part 1002 of this chapter shall accompany the application 
except that carriers or agents using the monthly tariff filing fee 
payment system may also pay these fees monthly.
    (e) Copies and numbering. The original and one copy of the 
application (including amendments and exhibits) shall be filed. 
Applications shall be consecutively numbered by the applicant.
    (f) Content of application. (1) All involved tariff publications 
shall be identified, including supplement and looseleaf page numbers, 
with specific reference to provisions by item, section, or page numbers.
    (2) If the proposal involves the publishing of rates, all points 
involved shall be sufficiently identified.
    (3) If the proposal involves rules, the wording of the rules shall 
be furnished.
    (4) The application shall show how the proposed change is to be 
published,

[[Page 300]]

i.e., by republication of tariff matter, or by publication of a 
statement.
    (5) The reasons and justification for the proposal shall be stated.
    (6) If relief is requested from notice requirements, the reasons why 
that notice cannot or should not be given shall be stated.
    (7) Applications requesting authority to change, cancel or postpone 
matter which is the subject of a protest or petition for investigation 
or suspension shall certify that the protestants have been notified by 
telegram or telephone. The application shall also state whether or not 
the protestants have registered objections to the proposal. See 
Sec. 1312.40(e).
    (g) Telegraphic request. When, because of an emergency, special 
tariff authority is requested by telegram, the telegram shall state the 
pertinent facts. The fee, if not paid monthly, shall be sent not later 
than the next working day.
    (h) Appeals to special tariff authority decisions may be filed. See 
49 CFR 1118.4.
    (i) Authority to reject publication. The granting and use of special 
tariff authority does not limit the Commission's jurisdiction over the 
content of the tariff, or any of the Commission's powers with respect to 
the tariff.



Sec. 1312.3  Size of paper and where to send tariff publication and other documents.

    Except as authorized in Sec. 1312.30(c) (Distance Guides), tariff 
publications and other documents shall be prepared on durable paper, 
measuring not more than 8\1/2\ x 11 inches, and shall be sent to:

Interstate Commerce Commission, Bureau of Traffic--Section of Tariffs, 
Washington, DC 20423.

Packages containing tariff publications shall be prominently marked 
``Tariffs.'' Packages containing applications for special tariff 
authority to depart from these rules shall be prominently marked 
``Special Tariff Authority Application.''



Sec. 1312.4  Filing tariffs.

    (a) Number of copies and fees for filing. Carriers and agents shall 
send 2 copies of each tariff publication for official filing, unless the 
Commission requests more. When a tariff publication is published in more 
than one agent's name, only two copies of the publication are required. 
An agent's or carrier's tariff publication containing joint rates or 
provisions constitutes a sufficient filing for each of the participating 
carriers. It is not required that 2 copies be filed in the name of each 
agent. Fees shall be paid in accordance with part 1002.
    (b) Letters of transmittal. (1) A letter of transmittal shall be 
sent in the same package with the tarriff publication(s).
    (2)(i) A letter of transmittal shall be signed by the person issuing 
the tariff or an athorized representative. Authorizations shall not be 
filed with the Commission unless specifically requested or the existence 
of such authorization is questioned in a challenge to the tariff. Absent 
challenge, the Commission will assume agents have the necessary 
authority from their principals.
    (ii) A letter of transmittal shall clearly indicate in the upper 
left-hand corner thereof:
    (A) The assigned alpha code of the carrier or agent issuing the 
tariff publication(s);
    (B) The number of series transmitted;
    (C) The filing fee enclosed, the account number to be billed, or the 
credit card to be charged; and
    (D) The tariff transmittal number, if the filer utilizes transmittal 
numbers.

If the filing fee is charged to a credit card, the information must 
include the credit card number and expiration date, and an authorized 
signature.
    (3) If one transmittal letter is used to cover more than one package 
of tariff publications, the letter shall state the number of packages. 
The original letter shall be sent in one package and a copy of the 
letter sent with each of the other packages.
    (4) If a receipt is desired, mark the letter ``Receipt Requested'' 
and send an extra copy of the letter with a postage paid, self-addressed 
return envelope. Do not enclose loose stamps.
    (5) Letters of transmittal must contain the certification required 
by Sec. 1312.6.
    (6) When a tariff publication containing rates on household goods as 
defined in Sec. 1056.1(b)(1) of this title is published

[[Page 301]]

for the account of household goods carriers as defined in Sec. 1056.1(b) 
or for motor carriers of property to effect a general increase or 
decrease under the Ex Parte No. MC-82 procedures, on not less than 45 
days' notice, the letter shall so indicate.
    (7)(i) The letter of transmittal accompanying each tariff 
publication which contains a rate, charge, or provision which the 
carrier wishes to have filed pursuant to zone of rate freedom provisions 
of 49 U.S.C. 10708(d)(1) applicable to motor common carriers of property 
and household goods freight forwarders, shall indicate this by including 
an appropriate statement.
    (ii) If the application of the proposed rate, charge, or provision 
would result in an increase in charges, the letter must state that the 
proposed increase in the aggregate is not above the rate in effect 1-
year prior to the effective date of the proposed increase by more than 
the proper percentage in paragraph (b)(7)(vi) of this section.
    (iii) If the application of the proposed rate, charge, or provision 
would result in a reduction in charges, the letter must state that the 
proposed reduction in the aggregate is not below the lesser of the rate 
in effect on July 1, 1980 (or the date, if after July 1, 1980, on which 
a rate, charge, or provision first became effective for a service not 
provided by the household goods freight forwarder, or the carrier, on 
July 1, 1980), or the rate in effect 1-year prior to the effective date 
of the proposed reduction, by more than the proper percentage in 
paragraph (b)(7)(vi) of this section.
    (iv) The carrier or household goods freight forwarder will also be 
required in the letter to certify that the rates or provisions do not 
exceed the amount allowed by section 10708(d)(3) (A or B), and the rates 
or provisions fall within the appropriate zone; also, if the rate is 
above the rate in effect one year earlier by more than the proper 
percentage in paragraph (b)(7)(vi) of this section, the carrier or 
household goods freight forwarder must include in the statement whether 
the proposed rate has been subject to general rate increases during the 
previous year, what percent increase was taken, the bureaus which 
published the increase, and the effective date.
    (v) The letter need not identify the number of the item (or page) 
and tariff in which the rate, charge, or provision may be found that was 
in effect one year prior to the date of the proposed rate, or on July 1, 
1980, or later, as appropriate. However, if the rate is protested, the 
household goods forwarder or carrier, in its reply to the protest, must 
make such identification.
    (vi) At the end of each one-year period after October 23, 1986, the 
zone of rate freedom percentage will be automatically increased by 5 
percentage points, in the absence of Commission action to the contrary. 
The following table sets for the effective date of each zone expansion 
for the 10 years following adoption of these rules.

------------------------------------------------------------------------
                           Date                              Percentage 
------------------------------------------------------------------------
Oct. 23, 1986............................................        20     
Oct. 23, 1987............................................        25     
Oct. 23, 1988............................................        30     
Oct. 23, 1989............................................        35     
Oct. 23, 1990............................................        40     
Oct. 23, 1991............................................        45     
Oct. 23, 1992............................................        50     
Oct. 23, 1993............................................        55     
Oct. 23, 1994............................................        60     
Oct. 23, 1995............................................        65     
------------------------------------------------------------------------

    At all times the zone of rate freedom percentage (relating to the 
upper limit of the zone) will be increased or decreased, as the case may 
be, by the percentage change in the Producers Price Index (as published 
by the Department of Labor) that has occurred during the one-year period 
prior to the effective date of the proposed rate.
    (8) The letter of transmittal accompanying each tariff publication 
which contains a fare, rate, charge, or provision which the carrier 
wishes to have considered pursuant to the zone of rate freedom 
provisions of 49 U.S.C. 10708(d)(4) applicable to motor common carriers 
of passengers shall indicate this by including an appropriate statement.
    (i) If application of the proposed fare, rate, charge, or provision 
would result in an increase in charges, the letter shall state that the 
proposed increase in the aggregate is not more than 10 percent above 
that in effect one year prior to the effective date of the proposed 
increase. On November 19, 1983,

[[Page 302]]

the figure increased to 15 percent. On November 19, 1984, the figure 
increased to 20 percent. When only some increases are within the zone, 
they should be designated individually.
    (ii) If the application of the proposed fare, rate, charge, or 
provision would result in a reduction in charges, the letter shall state 
that the proposed reduction in the aggregate shall be no more than 20 
percent below the lesser of that in effect on November 19, 1982 (or, in 
the case of any charges which the carrier or carriers first establish 
after such date for a service not provided by the carrier or carriers on 
such date, such charge on the date such charge first becomes effective) 
or the charge in effect one year prior to the effective date. On 
November 19, 1983, the figure changed to 25 percent; and, on November 
19, 1984, the figure changes to 30 percent. When only some decreases are 
within the zone, they should be designated individually.
    (iii) After November 19, 1985, the Commission may not investigate, 
suspend, revise, or revoke any rate proposed by a motor common carrier 
of passengers on the grounds that such rate is unreasonable on the basis 
that it is too high or too low, unless the proposed rate is established 
collectively in accordance with the procedures of an agreement approved 
by the Commission under 49 U.S.C. 10706(b). After November 19, 1985, 
statements required in the immediate preceding two paragraphs above 
shall no longer be required. In publishing and filing a tariff under 49 
U.S.C. 10762, the carrier shall disclose whether such rate is the result 
of collective ratemaking procedures pursuant to an agreement approved by 
the Commission under 49 U.S.C. 10706(b).
    (iv) If a fare, rate, charge, or provision filed under the zone of 
rate freedom provisions of 49 U.S.C. 10708(d)(4) is protested, the 
carrier shall, in its reply to the protest, identify the number of the 
item (or page) and tariff in which the fare, rate, charge, or provision 
may be found that was in effect one year prior to the effective date of 
the proposed rate, or on November 19, 1982, or both, as appropriate.
    (c) Tariff publications not consecutively numbered or lettered. A 
tariff publication submitted for filing, which is not in sequence, shall 
be accompanied by an explanation.
    (d) Concurrences and powers of attorney. Concurrences and powers of 
attorney shall not be filed with the Commission. However, a carrier may 
not participate in a tariff issued in the name of another carrier or an 
agent unless a power of attorney or concurrence has been executed. 
Absent effective concurrences or powers of attorney, tariffs are void as 
a matter of law. Should a challenge to a tariff be made on this basis, 
carriers will be required to submit the necessary proof. See also 
Sec. 1312.10.
    (e) Period of notice required. (1) As a general rule, tariff 
publications shall be filed on statutory notice; i.e.:
    (i) For railroad tariffs:
    (A) 20 days for rates or provisions published in connection with new 
service or changes resulting in increased rates or decreased value of 
service;
    (B) 10 days for changes resulting in decreased rates or charges or 
changes resulting in neither increases nor reductions;
    (C) For contracts and contract summaries filed pursuant to 49 U.S.C. 
10713 see Sec. 1312.41; and,
    (D) 45 days for publications naming surcharges or cancelling joint 
rates under 49 U.S.C. 10705a;
    (E) For independently set rates of rail carriers the general rule is 
1-day's notice for reductions and new rates. See Sec. 1312.39(h) for 
details.
    (ii) For all other carriers:
    (A) 30 days' notice is required.
    (B) For independently set rates of motor common carriers and 
household goods freight forwarders the rule generally is 1 day's notice 
for reductions and 7 workdays' for increases see Sec. 1312.39(f) for 
details.
    (C) For independently set rates of motor carriers of passengers, 
including regular route passenger, package express and special and 
charter operations, the rule generally is 1-day's notice for reductions 
and increases of passenger rates. See Sec. 1312.39(i) for details.

However, numerous exceptions authorizing shorter notice are contained in 
these rules, and special permission for shorter notice may also be 
requested.

[[Page 303]]

    (2) Notice means the number of days a publication shall be on file 
with the Commission prior to its effective date. The date the 
publication is received by the Commission is the 1st day of notice.
    (f) Return of tariffs by the Commission. The Commission will not 
return a tariff publication unless it is formally rejected (see 
paragraph (g) of this section) or under the following circumstances:
    (1) The package containing the tariff publication arrives with 
postage or other delivery charges due; or
    (2) The tariff publication which the Commission receives is missing 
an essential part; or
    (3) A carrier or agent requests returns before the effective date 
and subscribers are promptly notified.
    (g) Rejection of tariff publication. A tariff publication submitted 
for filing may be rejected by the Commission if the publication--
    (1) Fails to give lawful notice of changes in rates or provisions 
which it proposes to establish;
    (2) Fails to meet the requirements of the regulations in this part; 
or
    (3) Violates any decision or order of the Commission or of a court.

When a tariff publication is rejected, the party who tendered it will be 
furnished a written explanation of reasons. The rejected tariff 
publication ordinarily will be returned, but the Commission may retain 
copies for its own use. Appeals of the rejection may be filed.

[49 FR 38615, Oct. 1, 1984, as amended at 51 FR 9814, Mar. 21, 1986; 51 
FR 33753, Sept. 23, 1986; 51 FR 44297, Dec. 9, 1986; 52 FR 537, Jan. 7, 
1987; 58 FR 7756, Feb. 9, 1993; 58 FR 11099, Feb. 23, 1993]



Sec. 1312.5  Posting requirements.

    (a) General posting requirements. (1) Each carrier shall maintain, 
at its principal office, a complete set of its tariffs (proposed and 
effective) and those to which it is a party.
    (2) Each carrrier shall also maintain some or all tariffs at other 
locations, as may be useful. Carriers shall provide information 
regarding all locations where tariffs may be viewed.
    (3) At all points where tariffs are posted, they shall be made 
available for inspection by any person during carrier's normal business 
hours. The tariffs shall be accessible and readable. The carrier shall 
also post, in a conspicuous place in these locations, a notice, in large 
print, which contains a statement that the tariffs are available for 
public inspection.
    (4) At all other carrier business offices, the carrier shall display 
a notice advising the public of the location of the nearest available 
tariff file. The notice shall be in large print and posted in a 
conspicuous place. In addition, the carrier shall, upon request, make 
particular tariffs available at that location as soon as possible but 
not later than within 20 days, or provide the sought information orally 
if satisfactory to the requestor.
    (5) Any publication referred to in a tariff must be posted with that 
tariff.
    (b) Exceptions to the posting requirements. (1) Class III carriers 
shall maintain at their principal office a complete set of all tariffs 
filed in their own behalf covering rates, charges and services performed 
within the limits of their operation. Tariffs in which Class III 
carriers are listed as participants can be made available at their 
principal office or in the tariff file of their principal connecting 
carrier(s).
    (2) A motor common carrier of passengers, which participates in an 
agent's routing tariff, only has to post the title page of the routing 
tariff, the sections naming joint routes with connecting carriers, and 
any other rules or provisions necessary for an understanding of that 
carrier's routing.
    (3) Circus or show outfit tariffs (see Sec. 1312.39(e)) need not be 
posted.
    (4) If any tariff maintained pursuant to paragraphs (a) (1) and (2) 
of this section has not been used for a substantial length of time the 
posting of that tariff, including its reissues, may be discontinued at 
that station until such time as a request is made to the carrier's agent 
to have it reposted. It shall then be reposted within 20 days.
    (c) Notice of proposed increases in passenger fares. (1) Motor and 
rail common carriers of passengers proposing to increase commutation or 
suburban service fares--

[[Page 304]]

    (i) By tariff publication, shall comply with the provisions of 
paragraphs (c) (3), (5), (7), (8), and (9) of this section; or
    (ii) By petition to the Commission prior to filing tariff 
publications, shall comply with the provisions of paragraphs (c) (3), 
(4), (6), and (8) of this section.
    (2) Motor and rail common carriers of passengers proposing to 
increase regular route service fares other than commutation or suburban 
service fares--
    (i) By tariff publication, shall comply with the provisions of 
paragraphs (c) ( 3), (5), and (10) of this section; or
    (ii) By petition to the Commission prior to the filing of tariff 
publications, shall comply with the provisions in paragraphs (c) (3), 
(4), and (6) of this section.
    (3) A notice shall be displayed at a conspicuous place at each 
station where tariffs containing the fares to be increased are required 
to be posted and, in 2 conspicuous places, one in the forward and one in 
the rear section of each vehicle engaged in the service for which the 
increase is proposed. The notice shall be printed in type sufficiently 
large to be read under ordinary conditions by passengers seated in the 
vehicle. Each notice shall be either one sign at least 240 square inches 
in size or two signs at least 120 square inches in each size.
    (4) The notice shall--
    (i) Describe briefly the increases proposed, the transportation 
service for which they are proposed and the points affected;
    (ii) State that interested persons may file objections with the 
Commission; and
    (iii) State that information regarding the Commission's rules of 
practice may be obtained by writing the Secretary of the Commission.
    (5) The notice shall be displayed at the same time a tariff 
publication containing the proposed increased fares is filed with the 
Commission and shall remain displayed until--
    (i) The carrier withdraws its request;
    (ii) The Commission suspends the increase; or
    (iii) The increase becomes effective.
    (6) The notice shall be displayed at the same time a petition is 
filed with the Commission requesting authority to increase fares or to 
file a tariff publication containing proposed increased fares. The 
notice shall remain displayed until the Commission acts on the petition.
    (7) The carrier shall send a copy of the notice by first-class mail 
to the Governor and any State and County agency responsible for 
passenger service in all affected states and counties.
    (8) As to each municipality affected by the proposal which has a 
population of 25,000 or more, the carrier shall send a copy of the 
notice--
    (i) To all daily newspapers published in the municipality having a 
circulation of 25,000 or more; or if none,
    (ii) To the daily newspaper having the largest circulation; or, if 
there is no daily newspaper,
    (iii) To the weekly newspaper having the largest circulation.
    (9) The notice shall read substantially as follows:

       Notice of Increased Fares for Commuter or Suburban Service

                            (Name of carrier)

This carrier has filed tariffs with the Interstate Commerce Commission 
proposing increases in fares effective (Date) -------- for (Here, 
describe briefly the kind of transportation, points or localities 
affected, and the increase proposed.)

_______________________________________________________________________
_______________________________________________________________________

Anyone may file a complaint challenging the increase by writing to the 
Interstate Commerce Commission, Washington, DC 20423.

The complaint should include the reasons you object to the increase and 
should be mailed (Here, show ``in time to reach the Commission 12 days 
before the effective date shown above'', unless the increase has been 
filed on less than 30 days' notice by a motor carier or 20 days' notice 
by a railroad. If the latter, show ``as soon as possible.''

_______________________________________________________________________
_______________________________________________________________________

At the same time the compliant is sent to the Commission a copy must 
also be sent to this carrier's general office. (Here, show the street 
address, city, state, zip code and telephone number of the carrier's 
general office.)

_______________________________________________________________________

[[Page 305]]

_______________________________________________________________________

Further information is on file at the regional and district offices of 
the Commission; at our stations, agencies, or offices where tickets are 
sold and tariffs containing the proposed increases are required to be 
posted; and at our general office. A copy of this proposal and statement 
of justification has been mailed to the Governor and to the appropriate 
State and County agencies in all states and counties affected by the 
proposal.

    (10) The notice shall read substantially as follows:

           Notice of Increased Fares for Regular Route Service

                            (Name of carrier)

This carrier has filed tariffs with the Interstate Commerce Commission 
proposing increases in fares effective (Date) -------- for (Here, 
describe briefly the kind of transportation, the points or localities 
affected, and the increase proposed.)

_______________________________________________________________________
_______________________________________________________________________

Anyone may protest the increase by writing to the Interstate Commerce 
Commission, Washington, DC 20423. The protest should include the reasons 
you object to the increase and should be mailed (Here, show ``in time to 
reach the Commission 12 days before the effective date shown above'', 
unless the increase has been filed on less than 30 days' notice by a 
motor carrier or 20 days' notice by a railroad. If the latter, show ``as 
soon as possible.''

_______________________________________________________________________
_______________________________________________________________________

At the same time the protest is sent to the Commission a copy must also 
be sent to this carrier's general office. (Here, show the street 
address, city, state, zip code and telephone number of the carrier's 
general office.)

_______________________________________________________________________
_______________________________________________________________________



Sec. 1312.6  Furnishing copies of tariff publications.

    (a) Definitions. Subscriber, as used in this section means any party 
other than carrier participants in the tariff that is voluntarily 
furnished, or any party that requests that it be furnished, one or more 
copies of a particular tariff with or without subsequent amendments or 
reissues of that tariff. Short-notice publication, as used in this 
section means a tariff publication authorized to be filed without notice 
or on notice of less than 10 days.
    (b) Sending new publications to subscribers. (1) The publishing 
carrier or agent shall send each newly-issued tariff, supplement, or 
loose-leaf page as requested to each subscriber by first class mail, or 
other means requested in writing by the subscriber.
    (2) Newly-issued tariffs, supplements, or loose-leaf pages, 
including short-notice publications, shall be sent to each subscriber 
not later than the time the copies for official filing are sent to the 
Board, except that with the advance, written permission of the 
subscriber, any publication may be sent not later than 5 working days 
after the time the copies are sent to the Board.
    (3) Carriers or agents may, if acceptable to a subscriber, furnish 
only specific portions of original tariffs and amendments affecting 
those portions.
    (c) Certification. The letter of transmittal accompanying the copies 
to the Commission shall contain the following certification:

    I certify that compliance with 49 CFR 1312.6 has been [in the case 
of advance agreements by the subscriber to delayed transmission or in 
the case of short-notice publications will be''] made.

    (d) Charges. (1) The charge for copies of tariff publications sent 
to subscribers shall be reasonable and identical.
    (2) No charge may be made (not even for the cost of sending the 
publication) for any publication that is rejected by the Commission.
    (e) Notice of rejection. If a publication is rejected, the 
subscribers shall be notified.

[49 FR 38615, Oct. 1, 1984, as amended at 50 FR 4864, Feb. 4, 1985; 61 
FR 30182, June 14, 1996]



Sec. 1312.7  Form and printing.

    (a) Form, durability and method of printing. Tariff publications 
shall be in the English language, and shall be legible and durable for 
the life of the tariff.
    (b) General rules. (1) Except for the title page, and except as 
otherwise authorized, all pages shall be consecutively numbered using 
Arabic numerals.
    (2) Pages intentionally left blank shall so state.
    (3) Reasonable margins shall be provided at a bound edge.

[[Page 306]]

    (c) Bound tariffs. Bound tariff publications of two or more sheets 
shall be permanently bound. Stapling is acceptable.
    (d) Looseleaf tariffs. (1) Original and revised pages shall be so 
designated. Numbering in sectional tariffs may use letter or number 
prefixes and suffixes after ``original'' or ``revised'', provided the 
system is explained. See Sec. 1312.17 for rules governing identification 
of amendments.
    (2) Each page shall show the name of the issuing carrier or agent 
and the complete mailing address. Ocean carriers filing tariffs jointly 
with this Commission and the Federal Maritime Commission shall show the 
name officially recognized by that agency.
    (3) Each page shall show the issued date and the general effective 
date. With the original issue of the looseleaf tariff, issued and 
effective dates need be shown only on the original title page, not on 
each original page. The name of the month shall be spelled out, followed 
by the day and year by number. If the page contains matter (including 
reissued matter) effective upon a date other than the general effective 
date, the notation ``(Except as otherwise provided)'' shall be shown 
directly with the general effective date.
    (e) Items and numbering systems. (1) Numbering systems shall be 
understandable and not duplicative.
    (2) Original tariffs shall allow sufficient unused item numbers to 
allow for expansion.
    (3) If two or more items contain related subject matter, or one or 
more items are subordinate to another, compound numbers (an original 
number followed by a hyphen or decimal, then a new series of numbers, 
i.e., Item 400, Item 400-1, Item 400-2 or Item 400, Item 400.1, Item 
400.2) are permitted. Compound numbers may be used in amendments if new 
matter has to be added, provided the initial number (item 400 in the 
example) has not already been used in a compound number series.
    (4) Sections of a tariff or notes outside or inside of items shall 
be numerically or alphabetically designated. Item numbers for class rate 
tables, if assigned, shall be in numerical sequence.



Sec. 1312.8  ICC tariff designations.

    (a) ICC designation. The ICC designation is--
    (1) The characters ``ICC''; followed by
    (2) The tariff, carrier or agent code; followed by
    (3) The tariff number.
    (b) ICC designations to be shown on tariff publications. (1) The ICC 
designation shall be shown on the title page of all new or reissued 
tariff publications.
    (2) Tariffs published to apply on emergency movements authorized 
under section 10928 of the Act may be filed without the carrier code if 
the carrier has not been issued a code. For example, a motor carrier's 
tariff may show a designation ``ICC 900'' if no code has been assigned 
and the number ``900'' has not been previously used. The tariffs shall, 
however, fully comply with all other requirements of this section.
    (c) Assignment of tariff, carrier and agent codes. (1) Tariff, 
carrier and agent codes shall consist of a minimum of two and a maximum 
of four alphabetical characters.
    (2) The codes shall be assigned by the transportation industry as 
follows:

Railroads: Executive Committee, Western Railroad Association, Suite 
1200, 222 Riverside Plaza, Chicago, IL 60606
Water Carriers: Waterways Freight Bureau, Suite 402, 1334 G St., NW., 
Washington, DC 20005
All Other Modes: (Passenger and Property), National Motor Freight 
Traffic Association, Inc., 1616 P St., NW., Washington, DC 20036

The fee assessed, if any, may be no more than the processing cost.
    (3) Only one code shall be assigned to each carrier or agent, except 
as authorized in paragraphs (c)(5) and (6) of this section.
    (4) A court appointed receiver, trustee, executor, administrator, 
assignee, etc., who assumes possession and operating control of a 
carrier's lines, in whole or in part, shall use the old carrier's code. 
In all other cases where the regulations in this part require the filing 
of an adoption notice, the code of the new carrier shall be used on the 
adoption notice and on all original tariffs filed thereafter in the new 
carrier's name. If a carrier's or agent's name is changed without a 
change in ownership

[[Page 307]]

of the carrier or identity of the agent, a new code shall be assigned, 
unless the Commission authorizes the use of the same code. (Exception: A 
code assigned for use on a specific tariff of an agent shall continue to 
be used on that tariff.)
    (5) Consideration shall be given to requests for the assignment of 
specific codes for classifications and other governing tariffs, issued 
by agents, which have a substantial nationwide application for a 
substantial number of participating carriers. Whenever possible, the 
assigned code shall coincide with the first letter of the primary words 
in the title of the tariff. Only one code shall be assigned to a tariff.
    (6) Consideration shall be given to requests for assignment of an 
extra code(s) to a carrier. The additional code(s) shall be constructed 
by the use of the base code assigned to the carrier, together with an 
appropriate letter suffix. In no case shall the code exceed four 
characters. If the base code consists of four characters, the letter 
suffix shall be added to the first three characters of the base code.
    (7) The industry shall file with the Commission in tariff form a 
list of the assigned alphabetical codes and the names of the carriers 
and agents to which they are assigned. The tariff shall be amended every 
3 months if the list has changed during that period. The amendments 
shall show the changes, additions and cancellations made during that 
period. The tariff shall comply with the amendment limitations provided 
in Sec. 1312.17 of this part. Partial amendments to the list may be 
shown in each supplement, and more than one partial amendment may be in 
effect at the same time.
    (d) Tariff numbers. (1) A tariff number assigned to a tariff shall 
consist of not more than four numerals. For rail general increase master 
tariffs, the number may be the letter ``X'' followed by the docket 
number of the ex parte proceeding.
    (2) For property tariffs of rail carriers, the first digit or letter 
shall conform to the following grouping:

------------------------------------------------------------------------
  First digit or letter of tariff                                       
               Nos.                           Types of tariffs          
------------------------------------------------------------------------
1.................................  Class rate tariffs.                 
2.................................  Class exceptions tariffs.           
3.................................  General commodity rate tariffs      
                                     (i.e., numerous unrelated          
                                     commodities).                      
4.................................  Specific commodity rate tariffs     
                                     (e.g., iron or steel articles).    
5.................................  Routing guide tariffs.              
6.................................  Governing tariffs (all kinds).      
7.................................  Reserved.                           
8 or 9............................  Miscellaneous tariffs (e.g.,        
                                     switching, special service,        
                                     terminal service).                 
X.................................  May be used for master tariff of    
                                     general increases.                 
------------------------------------------------------------------------

    (3) For tariffs of motor common carriers of property other than 
household goods carriers the first digit shall conform to the following 
grouping:

------------------------------------------------------------------------
    First digit of tariff Nos.                Types of tariffs          
------------------------------------------------------------------------
1.................................  Governing publications of all kinds;
                                     adoption notices.                  
2.................................  Commodity rate tariffs.             
3.................................  Combined class and commodity rate   
                                     tariffs.                           
4.................................  Commodity column or distance rate   
                                     tariffs.                           
5.................................  Class rate tariffs.                 
6.................................  Miscellaneous tariffs (those not    
                                     included in any other category).   
7.................................  Import and export tariffs (tariffs  
                                     assigned this digit shall contain  
                                     only import or export, or both,    
                                     provisions).                       
8.................................  Reserved for future assignment.     
9.................................  Tariffs containing rates or         
                                     provisions covering emergency      
                                     movements authorized by this       
                                     Commission under section 10928 of  
                                     the Act.                           
------------------------------------------------------------------------

Any tariff assigned any first digit other than 7 may contain some, but 
not solely, import or export provisions.
    (4) When a tariff could be construed as being of more than one type 
because of the provisions it contains, the governing factor in 
assignment of the digit or letter will be the category that represents 
the principal portion of the contents or which signifies its primary 
purpose.
    (5) The first digit of a tariff number assigned to tariffs of motor 
carriers of passengers or water carriers of property containing rates or 
provisions covering emergency movements authorized by the Commission 
under section 10928 of the Act shall be ``9''.
    (6) For all tariffs not governed by paragraphs (d) (2), (3), (4), or 
(5) of this section, the carrier or agent shall assign groupings for 
each of the particular types of tariffs involved, and the number 
assigned to a tariff shall conform to that grouping.

[[Page 308]]

    (7) The assigned number will remain the same from reissue to reissue 
of the tariff. The first time a tariff is issued, its tariff number 
shall not have a letter suffix. The first reissue of the tariff shall 
have the letter suffix A, the next reissue B, and so on through Z, after 
which the letter suffix A will again be used and the process repeated. A 
carrier or agent may not use any number on its tariffs that differs in 
any respect from that used in the ICC designation, and whole numbers 
(not fractional or decimal) shall be used.
    (e) Use in tariffs. A tariff which refers to another tariff shall 
identify the other tariff by its ICC designation and name the issuing 
carrier or agent.
    (f) ICC designations; rejected tariffs. When the ICC designation of 
a rejected tariff does not include a letter suffix, the designation on 
the tariff issued in its place shall bear the letter suffix A. When the 
ICC designation of a rejected tariff includes a letter suffix, the 
designation on the tariff issued in its place shall bear the next 
consecutive letter suffix. The rejected tariff may not be referred to in 
any subsequent tariffs as having been amended, canceled, or withdrawn, 
but the tariff which is published in its place shall bear the following 
notation:

    Issued in place of (here identify the rejected tariff), rejected by 
the Commission.

[49 FR 38615, Oct. 1, 1984, as amended at 51 FR 44297, Dec. 9, 1986]



Sec. 1312.9  Codes for identification of places.

    (a) Definition. As used in this part, the term code for 
identification of places means any numeric or alphabetic system used to 
represent, or identify, places, points, facilities, or locations.
    (b) Use. Codes for identification of places may be used instead of, 
or in addition to, the naming of places, points, facilities, or 
locations; provided that an explanation of the code is contained in the 
same tariff using the code, or in a separate tariff specifically named 
as a governing publication.



Sec. 1312.10  Powers of attorney, concurrences, transfer of agent. [See also Sec. 1312.4(d)]

    (a) Powers of attorney. Powers of attorney may be given by a carrier 
to a carrier or an agent for the purpose of publishing and filing 
tariffs. A power of attorney may be given by Class III rail carriers to 
larger carriers with which they connect or by rail subsidiaries to 
parent rail carriers authorizing the larger or parent rail carriers to 
publish tariffs, to give and receive concurrences, and to give powers of 
attorney to agents on behalf of the Class III or subsidiary rail 
carrier. The power may be as broad or limited as expressed in the 
document, and alternate agents may be named. Powers of attorney shall 
not be filed at the Commission, but shall be maintained and produced if 
requested by any person. Revocation or amendment of the power of 
attorney should be reflected through lawfully published tariff revisions 
effective concurrently. In the event of failure to so revise the 
applicable tariff or tariffs, the rates in such tariff or tariffs will 
remain applicable until lawfully changed. If the scope of a power of 
attorney is questioned by any person, the document shall be produced.
    (b) Concurrences. (1) A concurrence is used to show that one carrier 
has agreed to participate in joint rates or provisions published in a 
tariff filed by another carrier or agent. A concurrence does not give a 
carrier authority to publish local rates or provisions for the carrier 
issuing the concurrence. If two or more carriers execute powers of 
attorney to the same agent, it is not necessary for those carriers to 
exchange concurrences.
    (2) Concurrences shall not be filed with the Commission, but shall 
be maintained and produced if requested. Revocation or amendment of the 
concurrence should be reflected through lawfully published tariff 
revisions effective concurrently. In the event of failure to do so, the 
rates in such tariff remain applicable until lawfully changed. If the 
concurrence is questioned, the document shall be produced by any person.
    (c) Transfer of authority from one agent to another. When a new 
agent is to take over all effective tariffs of another agent (including 
where a name of a corporation is changed), powers of attorney shall be 
appropriately amended.
    (d) Take-over publications. (1) When an agent is appointed to take 
over an

[[Page 309]]

agency, or when an alternate agent takes over the duties of the 
principal agent, the new or alternate agent shall immediately issue a 
supplement to each of the superseded agent's effective tariffs. Instead 
of showing an effective date on the title page, the following statement 
or one to similar effect shall be shown:

    On and after [date the authority was transferred], this publication 
is the issue of [new or alternate agent's name].

    (2) In the case of a new agent, only the carriers that have issued 
new powers of attorney may be shown in the take-over publication as 
participants. All other carriers previously shown as participants shall 
be shown as canceled, either by listing each and stating its 
participation is canceled or by showing the following statement or one 
to similar effect at the beginning of the list:

    The following is the list of carriers participating in this tariff 
as of [take-over date]. All carriers previously shown as participants 
but not shown are canceled.

    (3) A take-over supplement shall remain in effect for the life of 
the tariff, except the list of participating carriers may be amended.
    (4) A take-over supplement is exempt from the provisions of 
Sec. 1312.18 limiting the number and volume of supplements.
    (5) Where joint-agent publications (see Sec. 1312.11) are involved, 
there are four major situations:
    (i) The issuing agent is taken over by an agent not already shown as 
joining in the publication.
    (ii) A joint agent is taken over by an agent other than the issuing 
agent.
    (iii) A joint agent is taken over by the issuing agent; or
    (iv) The issuing agent is taken over by a joint agent shown on the 
publication.
    (A) In the case of paragraph (d)(5)(i) of this section, the new 
agent issues the take-over supplement.
    (B) In the case of paragraph (d)(5)(ii) of this section, the issuing 
agent of the tariff issues the supplement showing the name of the new 
agent for the one taken over.
    (C) In the case of paragraph (d)(5)(iii) of this section, the 
issuing agent of the tariff issues the supplement, with the former agent 
and its ICC designation deleted.
    (D) In the case of paragraph (d)(5)(iv) of this section, the new 
agent becomes the issuing agent, issues the take-over supplement, with 
the former issuing agent and its ICC designation deleted. In each case, 
the supplement shall contain only matter necessary to explain the action 
with the list of participating carriers, if any, appropriately amended.
    (6) Amendments (including the take-over supplement) filed by the new 
agent to tariffs issued by the former agent shall, in connection with 
the ICC designation, show that they are in the series of the former 
agent.
    (7) New tariffs issued by the new agent shall be in the new agent's 
own ICC designation series. If a new tariff cancels a tariff taken over 
by the new agent, the cancellation shall indicate the series of the 
tariff canceled.
    (8) An alternate agent, after take over, shall continue to use the 
ICC designation series of the former agent, and shall, in connection 
with the ICC designation, identify it by name of the former agent.



Sec. 1312.11  Tariffs issued by joint agents not applicable to contract carriers or household goods freight forwarders.

    (a) May be filed. Two or more agents may issue a tariff(s). Each 
agent shall act only for carriers who have given it powers of attorney 
or who have given concurrences to carriers issuing powers of attorney. 
Each agent need not obtain powers of attorney from all participating 
carriers. Each carrier shall be shown as participating under authority 
given to one of the issuing agents.
    (b) Title pages and looseleaf pages. The title page of each original 
joint issue tariff and supplement and each joint issue looseleaf page--
    (1) May show a separate ICC designation in the series of each agent; 
and
    (2) Shall show at the bottom--
    (i) ``Issued By'' followed by the name, title, and mailing address 
of the principal agent or issuing party; and
    (ii) Below that, ``Jointly With'' followed by the name, title, and 
mailing

[[Page 310]]

address of the other agent(s) joining in the issue.

For bound tariffs only, the names, addresses, and ICC designations of 
agents other than the principal agent may be shown on the reverse side 
of the title page of the tariff publication instead of on the title 
page. Except as provided in Sec. 1312.10, an agent may be added or 
deleted as an issuing party only by reissue of the tariff. In either 
case, the former tariff shall be canceled only by supplement.
    (c) List of participating carriers. Any list of carriers 
participating in the tariff shall be arranged as provided in 
Sec. 1312.13 and shall be published in--
    (1) The tariff itself:
    (2) A separate jointly issued participating carrier tariff; or
    (3) Each issuing agent's separate participating carrier tariff.

[49 FR 38615, Oct. 1, 1984, as amended at 51 FR 44297, Dec. 9, 1986]



Sec. 1312.12  Title page of original tariffs.

    (a) Title page required. Original tariffs shall have a title page 
which contains at a minimum the information required by paragraphs (b) 
through (k) of this section.
    (b) ICC designation and cancellation notice. The tariff's ICC 
designation shall be shown. Immediately under it, the ICC designation of 
the tariff(s) being canceled, if any. If there are numerous tariffs 
being canceled, the ICC designations of those tariffs may be shown--
    (1) If a bound tariff, on the first page after the title page which 
contains tariff matter; or
    (2) If a looseleaf tariff, on the first page after the ``check 
sheet(s),'' or, if the ``correction number, checkoff'' type of check 
sheet is also employed, the first page following that. If the 
cancellations are not shown on the title page, reference to the location 
of the listing of the canceled tariffs should be shown.
    (c) Looseleaf tariffs. The title page of an original looseleaf 
tariff shall be designated as an ``Original Title page.''
    (d) Name and certificate number. The name of the issuing carrier or 
agent and complete mailing address shall be shown. Ocean carriers filing 
tariffs jointly with this Commission and the Federal Maritime Commission 
shall show the name officially recognized by that agency. The name of 
the carrier shall be followed by the number of its certificate or 
permit, if any. Sub numbers of certificates and permits need not be 
shown. If the agent is a corporation or association, its name shall be 
shown. If the agent is an individual, the association's name (if any) 
for whom the agent acts may also be shown.
    (e) Type of rates or fares, modes of transportation and territorial 
application--rate or fare tariffs. (1) (This paragraph applies to motor 
passenger contract carriers.) The title page shall state that the tariff 
is a ``Contract Carrier Schedule of Minimum Rates [or ``Fares''] and 
Charges Applying On'', and show a short, specific description of the 
commodities, or types of fares, and the territory covered.
    (2) (This paragraph applies to common carriers.) A tariff naming 
rate shall provide the following information:
    (i) The type of rates, the modes of transportation, and the 
territory covered. The terms local, joint, proportional, and distance 
shall be used to identify the rates.
    (ii) Tariffs shall use appropriate terms to identify the rates in 
the tariff as specifically as possible; for example: export, import, 
coastwise, intercoastal, assembling, distribution, class, commodity, 
commodity-column (column-commodity), passenger, commutation, truckload, 
carload, trainload, less-than-truckload, less-than-carload, or any 
quantity.
    (iii) Each mode of transportation shall be identified, such all-
rail, all-motor, motor-water, motor-rail or rail-motor-water routes.
    (f) Governing tariffs. A classification, a rules tariff or another 
type of governing tariff shall show a brief descripition of the tariff 
and its contents.
    (g) Nomenclature for tariff. A brief reference (e.g., ``Iron and 
Steel Tariff,'' ``Charter Coach Tariff''), by which the tariff can be 
readily identified may be shown.
    (h) Reference to item containing a list of governing tariffs. A 
tariff governed by one or more other tariffs shall refer to

[[Page 311]]

the item containing the list of the governing tariffs, in the following 
manner:

    For governing publications, see Item ----.

    (i) Tariffs issued under decision, order or other authority. A 
reference to the decision or order by number, or a reference to the 
regulation by section number, and the number of days' notice (where less 
than statutory notice is authorized) shall be shown if the entire 
tariff--
    (1) Is issued to comply with a mandatory decision of the Commission 
or an order of a court requiring a specific action;
    (2) Is issued under authority of a permissive decision allowing less 
than statutory notice or departure from tariff publishing regulations; 
or
    (3) Is published under a regulation of this part permitting less 
than statutory notice or departure from an outstanding decision, or 
both.
    (j) Issue and effective dates. The issue date and the general 
effective date shall be shown. If a tariff contains matter (including 
reissued matter) effective upon a date other than the general effective 
date, show the following directly with the general effective date: 
``(except as otherwise provided).''
    (k) Expiration dates. A tariff that is to expire with a given date 
shall show the following or similar notation: ``This tariff, as amended, 
expires with [here show date of expiration], unless sooner canceled, 
changed, or extended.''

[49 FR 38615, Oct. 1, 1984, as amended at 52 FR 4627, Feb. 13, 1987]



Sec. 1312.13  Contents of tariffs.

    (a) General requirements. No provision may be published in tariff 
publications which exceeds the carrier's operating authority. An 
original tariff shall contain the provisions required by paragraphs (b) 
through (l) of this section. Any matter not specifically prohibited may 
be included.
    (b)  Checksheets--looseleaf tariffs only. A checksheet, may be used 
to list in numerical order the numbers of the original looseleaf pages 
comprising the tariff. (This page shall always show an updated listing 
of each page and supplement and shall accompany the pages and 
supplements being filed.) If the tariff uses the ``correction number, 
check-off'' type of checksheet as looseleaf page amendments are filed, 
it must be accompanied by in numerical order, a list of correction 
numbers beginning with No. 1. See Sec. 1312.17 Amendments.
    (c) Participating carriers. (1) (This paragraph does not apply to 
carriers' local tariffs.) Unless a separate participating carrier's 
tariff is filed, a list of the participating carriers shall be provided, 
showing the names of the carriers; the city and state of the principal 
office of the carrier; and the lead docket number of each carrier's 
operating authority, if any.
    (2) A carrier may not without authorization file local rates or 
provisions to apply for another carrier not joint rates or provisions to 
which it is not a party.
    (d) Statement of operating authority in rate tariffs. (This 
paragraph does not apply to railroad, pipeline or passenger carriers.) 
The operating authority under which rates are published shall be clearly 
shown in the tariff containing the rates, in a referred to ``scope 
tariff'' (see Sec. 1312.24) or in a rules tariff.
    (e) Governing tariffs. (1) A list of governing tariffs shall be 
shown, along with the type of tariff, its issuing agent or carrier, and 
its ICC designation.
    (2) Governing publications shall be on file with the Commission 
except that rules published in the CFR and other publications containing 
standardized codes or terms that are published by the Federal government 
and available from the government need not be reproduced, only 
referenced.
    (3) Governing publications shall not result in conflicting rates, 
charges or provisions.
    (f) Rules and other provisions which govern the tariff. (1) Rules or 
provisions stating conditions which in any way affect the rates named in 
the tariff shall be published either in the rate tariff under the 
heading ``Governing Provisions'' or other tariffs. A provision affecting 
a particular item or rate shall be specifically referred to. Provisions 
affecting more than one but not all of the rates in the tariff or 
applying for only some of the participating carriers may be included 
with explanatory statements.

[[Page 312]]

    (2)(i) Each rule or regulation shall be given a separate number. 
Where the following subjects are to be provided for in rail tariffs, the 
rules covering them shall bear the titles indicated and be assigned the 
item numbers indicated. If a title includes subjects not treated in the 
rule, those subjects may be eliminated from the title.

                             Item and Title

  5  Description of Governing Classification, Exceptions and Rules 
Tariffs
 10  Station List and Conditions
 15  Explosives, Dangerous Articles
 20  Reference to Tariffs, Items, Notes, Rules, etc.
 25  Terminal or Transit Privileges or Services
 30  Perishable Freight
 35  Transfer Between Connecting Carriers
 40  Consecutive Numbers
 45  Capacities and Dimension of Cars
 50  Combination Rates
 55  Substitution of Motor Service for Rail or Water Service
 60  National Service Order Tariff
 65  Proportional Rates--application
 70  Alternation
 75  Method of Canceling Items
 80  Intermediate Application--origin
 85  Intermediate Application--destination
100  Method of Denoting Reissued Matter in Supplements
105  Straight or Mixed CL Application

For motor tariffs, the list is as follows:

                             Item and Title

100  Governing Publications
110 to 119  Definitions
150  Application of Tariff
160 to 290  Application of Rates
299  Absorptions
300  Advancing Charges
305  Advertising on Carrier Equipment
310  Advertising or Premiums
315 to 335  Allowances
340  Arbitraries or Differentials
345  Arrival Notice and Undelivered Freight
350  Assembling or Distributing Freight
360  Bills of Lading
370  Bulk Freight
381  Cancellation of Items
382  Cancelling Original and Revised Pages, Except the Title Page
390  Capacity Loads
405  Carrier Trade Names
407 to 419  Claims, Loss and Damage
420  Classification of Articles--General
421  Classification by Analogy
422  Classification of Combined Articles
423  Classification of Loose Articles
424  Classification of Parts or Pieces of a Complete Article
426  Classification of Reconditioning Bags
428  Classification of Various Documents Included with Freight
430  COD shipments
435  Collection of Charges
440  Commercial Zones
455  Consecutive Numbers
460  Consolidation of Shipments
465  Containers
470  Control and Exclusive Use of Vehicles
480  Customs or In-Bond Freight
490  Density
500  Detention--Vehicles With Power Units
501  Detention--Vehicles Without Power Units
502  Detention--LTL or AQ Shipments
503  Detention--Prearranged Scheduling
510  Distances
520  Equipment
530  Expedited Service
535  Expiration Dates
540  Explosives and Other Dangerous Articles
550  Export, Import, Coastwise or Intercoastal Freight
560  Extra Labor
565  Fractions
566  Handling Freight Not Adjacent to Vehicle
568  Heavy or Bulky Freight
570  Impracticable Operations
575  Light or Bulky Freight
578  Loading by Consignor--Unloading by Consignee
580  Marking or Tagging Freight
595  Maximum Charge
600  Meat Hooks or Racks
610  Minimun Charge
640  Mixed Shipments--LTL
645  Mixed Shipments--TL or Vol.
647  Notification Prior to Delivery
650  Operating Rights
660  Order-Notify Shipments
670  Over Dimension Freight
675  Over Weight Shipments
680 to 689  Packing or Packaging
710  Pallets, Platform or Skids
720  Payment of Charges
730  Peddler Truck Shipments
740  Permits, Special
750  Pickup or Delivery Service
753  Pickup or Delivery Service--Private Residence
754  Pickup or Delivery Service--Sundays or Holidays
755  Pickup or Delivery Service--Saturdays
756  Pickup or Delivery Service--Saturdays, Sundays, or Holidays
765  Precedence of Rates
766  Precedence of Rules
770  Prepayment
780  Prohibited or Restricted Articles
784  Proof of Delivery
800  Proportional Rates
810  Protective Service
820  Reconsignment or Diversion
830  Redelivery
845  Reference to Tariffs, Schedules

[[Page 313]]

846  Reissued Matter, Method of Treating
848  Released Value
850  Reporting Charge
860  Returned, Undelivered Shipments
880  Sealing of Trucks
881  Section 10721 Tenders
883  Shipments Tendered as a Truckload
885  Single Shipment Pickup
887  Sorting or Segregating
890  Special Services
900  Stopoffs
910  Storage
920  Substitution of Service
940  Terminal Areas
950  Terminal Charges at Ports
957  Tolls
959  Transfer of Lading
960  Transfer of Service
970  Transit Privileges or Services
980  Unnamed Points
985  Vehicle Furnished But Not Used
990  Weighing and Weights
992  Weight Verification
995  Weights--Gross Weights and Dunnage
997  Weights--Minimum Weight Factor

    (ii) A carrier or agent may assign a title and number of its 
choosing for matter not listed, provided the title and number chosen do 
not conflict with those listed.
    (iii) If a title does not properly identify a rule's content, 
qualifying words, phrases or subtitles may be added. When qualifying 
words or phrases are used, the prescribed title shall be followed by a 
dash and the added words. Subtitles or references to excepted 
classification rules shall follow the title.
    (iv) When a rule is split into two or more parts, the prescribed 
item number may be subdivided. The first part of the rule (which shall 
contain the general rule, if any) must be assigned the prescribed item 
number without a numerical suffix. Each subdivision shall be assigned a 
compound number, which shall be constructed by use of the prescribed 
number followed by a decimal or a hyphen, then a new series of numbers, 
for example: Item 70.1, or 70-1, in numerical sequence. Each subdivision 
must show the prescribed title.
    (v) Exceptions to a rule may be included in the general rule or 
arranged in items immediately following the rule to which exception is 
taken. In the latter case, exception items are to use the standard item 
number of the general rule followed by a suffix--for example, exceptions 
to item 85 would use items 85.1, 85.2, etc., or 85-1, 85-2, etc.
    (vi) Tariffs subject to the provisions contained in Sec. 1312.37 are 
not subject to the requirements of this paragraph.
    (3) Governing provisions should be given brief, but descriptive, 
titles.
    (4) Tariffs containing rates for the transportation of dangerous 
articles (hazardous materials) may reproduce the Department of 
Transportation's regulations governing the acceptance and transportation 
of those articles refer to a separate tariff which contains the 
regulations, or refer to the CFR location of the governing rules.
    (5) Rules and regulations of passenger carriers concerning their 
practices, procedures and regulations for the sale, honoring, exchange, 
validation, refund, and time limits for usage of tickets shall be 
published in the fare tariffs, or the fare tariff shall refer to a 
separate tariff containing these provisions.
    (g) Exceptions to class ratings. (1) The exceptions to class ratings 
in a classification or exceptions tariff applying only for the rates 
published in one tariff shall be published in that tariff, be clear, be 
published in a separate section, be arranged in the same order, describe 
the commodity in the same words, or as close as possible, used in the 
classification, and use the generic heading, if any, used in the 
classification, and indicate the quantity application.
    (2) Different class ratings on the same article or commodity based 
on different minimum quantities may be published if the class ratings 
are published in one item.
    (3) An exception class rating may be published to apply on the 
movement of a plant to a new location without naming each article to be 
transported, provided application is clear.
    (h) Exceptions to classification or exceptions tariff rules. 
Exceptions to rules in a classification or exceptions tariff applying 
only for the rates published in one tariff, should be published in that 
tariff, in the ``Governing Provisions'' section [but see 
Sec. 1312.27(b)] and shall--
    (1) Be arranged in the same order as they appear in the 
classification;
    (2) Unless the exception is to make the rule (or part of the rule) 
not applicable, be complete in themselves by republication of the 
complete rules, section or other identifiable unit affected;

[[Page 314]]

    (3) Identify the classification rule (and exceptions tariff rule, if 
any) and the part being changed;
    (4) Republish the entire rule if relatively small;
    (5) If the exception is to make the rule (or portion of the rule) 
not applicable, identify the rule or portion affected.
    (i) Application for individual carriers. Tariffs shall contain 
statements indicating the proper application of the rates and provisions 
for particular carriers.
    (j) Statements of rates and fares. Rate tariffs shall contain a 
statement of rates applicable for the transportation of the articles on 
which rates are named. Fare tariffs shall contain a statement of fares 
applicable for the transportation of passengers which the tariff is 
intended to cover. Tariffs must be presented in a manner that allows all 
tariff users to have knowledge of the exact rate of fare applicable to 
any given shipment.
    (k) Statement of routes. A clear statement of routes over which the 
published rates apply shall be shown, prepared in accordance with the 
provisions of Sec. 1312.15.
    (l) Explanation of reference marks, notes, and abbreviations. (1) 
Reference marks, abbreviations and note references used in a tariff 
shall be explained either in the item to which they apply or in a 
separate item. Use shall be consistent throughout the tariff unless the 
deviation is specifically explained. See also Sec. Sec. 1312.17 and 
1312.18.
    (2) Standard carrier codes may be included as part of the List of 
Participating Carriers if one is published within the tariff, provided a 
statement to that effect is included under the explanation of 
abbreviations.
    (3) In addition to U.S. Postal Service State name abbreviations and 
acronyms of Federal agencies, the following commonly used abbreviations 
are acceptable without explanation.

------------------------------------------------------------------------
           Abbreviation                         Explanation             
------------------------------------------------------------------------
&                                  and                                  
AFB                                Air Force Base                       
a.m.                               ante meridien                        
Ave                                Avenue                               
Blvd                               Boulevard                            
Bldg                               Building                             
br                                 branch                               
Bros                               Brothers                             
 cents                             cents                                
CFR                                Code of Federal Regulations          
Co                                 Company                              
Corp                               Corporation                          
cu                                 cubic                                
cwt                                100 pounds                           
Cy                                 County                               
d/b/a/                             doing business as                    
$                                  dollars                              
E                                  East                                 
etc                                 et cetera                           
e.g.                               for example                          
Ft                                 Fort                                 
ft or                              foot, feet                           
gal                                gallon                               
i.e.                               that is                              
in or "                            inch, inches                         
Inc.                               Incorporated                         
Jct                                Junction                             
lb                                 pound                                
Ltd                                Limited                              
mfg                                manufacturing                        
Mt                                 Mount, Mountain                      
N                                  North                                
No.                                Number                               
oz                                 ounce                                
%                                  percent                              
p.m.                               post meridien                        
PO                                 Post Office                          
Rd                                 Road                                 
S                                  South                                
St                                 Street                               
US                                 United States                        
wt                                 weight                               
W                                  West                                 
------------------------------------------------------------------------

    (4) The following reference marks (symbols) are suggested for use.
     deg. or (R) or R to denote reductions
     - deg. or (A) or A to denote increases
     - or (C) or C to denote changes which result in neither increases 
nor reductions in charges
     deg. or (N) or N to denote no change in rate [fare] (see 
Sec. 1312.17(f)).
    + to denote intrastate application only
    [    ], {time} , , or (      ), to denote reissued matter (see 
Sec. 1312.17(g).
    (5) New or added matter (matter that does not actually change the 
application of published rates) on which the prescribed reference marks 
in this paragraph would not be appropriate may be indicated as ``New,'' 
``Addition,'' ``Add'' or bear a properly explained reference mark of the 
carrier's or agent's choice.

[32 FR 20541, Dec. 20, 1967, as amended at 54 FR 38998, Sept. 22, 1989]



Sec. 1312.14  Statement of rates and fares (see also Sec. 1312.41).

    (a) Shall be clear and explicit. (1) Rates, fares, and provisions 
shall be

[[Page 315]]

clearly stated and arranged in a systematic manner which establishes the 
rate, charge or attendant provisions for each service offered or 
performed by the serving carrier. Rates and charges shall be explicitly 
stated per unit in U.S. dollars or cents. A rate for a given service may 
be expressed as a definite percentage of another explicitly stated rate 
in the same or other tariffs. The disposition of fractions and other 
tariff elements required to determine the applicable rate, charge or 
provision shall be clearly explained. Tariffs of motor passenger 
contract carriers shall provide an explicit statement of the minimum 
rates, fares, or charges actually maintained. Rates may be stated in any 
measurable unit. Rates may be stated as applying e.g., per car, per 
vehicle, per mile, per vehicle-mile, per container, per package, per 
passenger, per unit of time or other variable unit, provided the measure 
of the service is fixed by defining the unit specifically, or in maximum 
terms, such as a stated maximum weight of contents permitted per vehicle 
or container of a certain maximum cubic capacity or measurement, or 
stated maximum dimensions or weight per individual package. Rates for 
rail, water, and motor passenger service (including one-way, roundtrip, 
commutation, etc.) may be stated per passenger or other identifiable 
unit. Rates based on quantity shall be stated as having any quantity, 
less-than-truckload, truckload, less-than-carload, carload, trainload, 
volume or any other clearly defined quantity application.
    (2) (This paragraph only applies to transportation of property by 
railroads.) Rates may be shown as applying from or to ``all points'' in 
a State to territory located on the lines of the carrier parties to the 
tariff, without naming the points in the tariff, provided the tariff is 
governed by a station list tariff or otherwise adequately describes the 
territorial scope. Points may be excepted from the application of the 
rates by listing them. Intermediate point rules (Sec. 1312.33) may not 
be used in connection with origin or destination points provided in 
accordance with this paragraph, as to do so would be redundant.
    (3) Rates may be published to apply from or to a named plant site, 
construction site, or other site, if its location is identified. Rates 
may be published for the account of a specifically named shipper or 
receiver.
    (b) Arbitraries. A tariff may provide rates from or to designated 
points by the addition or deduction of arbitraries or differentials to 
or from rates in the tariff from or to named base points. Provision for 
this shall be shown either in a separate item in the same tariff, which 
shall specifically name the base point and clearly and definitely state 
the manner in which the arbitraries or differentials shall be applied, 
or in a separate rate basis tariff.
    (c) Class rates. Class rate tariffs shall provide a rate for class 
ratings shown in the classification or exceptions tariff except class 
rates for certain classes may be omitted provided there is a statement 
that the next lower class or the next higher class (not both) for which 
rates are published shall be used.
    (d) Alternation and precedence of rates, and maximum charges. 
Alternation of rates is permitted. The extent of alternation must be 
clearly defined by explicitly delineating the levels of rates subject to 
alternation. For example:

--Rates named in section 2 of this tariff alternate with rates named in 
sections 3 and 4 of this tariff.
--Rates named in this tariff alternate with rates named in tariff ------
, issued by ------.
--Commodity rates named in Section of -- of this tariff alternate with 
class rates named in tariff ------, issued by ------------; alternation 
extends to class rates as discounted through use of discount provisions 
named in tariff ------, issued by ------------.

    (e) Mixed shipments. If two or more commodities are listed in 
connection with a rate or rating application, there shall be a clear 
statement as to whether the rate or rating applies only on straight 
shipments, on a specific mixture of the articles, or on straight or 
mixed shipments. If one or more of the commodities are to be subject to 
a rate or a minimum quantity or both, different from the others, how the 
minimum charge per mixed shipment is to be determined shall be clearly 
stated. This is also required if two or more rates or ratings, based on 
different minimum quantities, are provided for

[[Page 316]]

the same commodity. Where different rates or ratings are so provided, 
there shall be a statement published explaining how the deficit, if any, 
in the applicable minimum weight shall be rated.
    (f) Commodity rates. Except as otherwise provided in paragraphs (g), 
(h) and (i) of this section, when commodity rates are established, the 
commodity description shall be specific and the rates may not be applied 
to analogous articles unless so provided. As far as possible, uniform 
commodity descriptions should be used in all tariffs.
    (g) Generic terms. Rates, tariffs, or sections of tariffs may be 
published to apply commodities without naming the individual articles by 
publication of an appropriate description.
    (h) Reference to items or lists for commodities or descriptions. (1) 
Commodity rate items may contain rates on a number of articles without 
naming the articles in the item by use of a generic term and reference 
to an item (not a rate item) in the tariff or in a separate tariff 
(sufficiently identified on its title page) which contains a complete 
list of the articles (and minimum weights, if any). The list shall bear 
a commodity caption (for example ``Packinghouse products, namely''), 
which shall be worded the same as the generic term used in the rate 
item, and the commodities in each list shall be arranged alphabetically.
    (2) The rate item may except certain commodities in the list.
    (3) A rate tariff may refer to a classification instead of, or in 
addition to, a separate list tariff for description of articles on which 
rates published by reference to generic terms will apply. The reference 
may be restricted to the descriptions in certain identified items under 
the generic heading used. A rate item may refer to classification items 
for a detailed description, and for governing conditions, if the 
commodity term used in the rate item embraces the commodities in the 
classification items. The rate tariff shall clearly indicate the 
application of notes, qualifying conditions and other matter published 
in connection with the classification items.
    (i) Application of aggregate of intermediate rates and combination 
rates. (1) Except where a carrier elects to permit alternation, when a 
rate, whether local or joint, from origin to destination has been 
established via a route as a ``one-factor rate,'' it becomes the only 
legal rate for through transportation via that route, whether it is 
greater or less than the aggregate of intermediate rates, if any.
    (2) The lowest combination of rates applicable via the route of 
movement is the legal rate if no one-factor rate is in effect. The 
combination shall be treated as a unit from origin to destination.

    Note: This section does not require equalizing via one route or 
gateway the combination of rates applicable over another route or via a 
different gateway.

    (j) Proportional rates. (This paragraph does not apply to contract 
carriers or household goods freight forwarders.) Tariffs containing 
proportional rates shall clearly show their application. If a 
proportional rate is intended for use on traffic destined to a 
restricted territory or points, the territory shall be clearly defined.
    (k) Tank-line gauge books and equipment register. When rates are 
published with minimum weights dependent upon, for example, the length 
of the car used, or the marked cubical or gallon capacity of the car 
used, that measurement or mark becomes an intergral part of the rate and 
carriers shall file tariffs showing the numbers, dimensions, capacities, 
and ownership of freight cars, and other information required by law to 
be filed with respect to such cars. The information may be published in 
separate publications and be filed by duly authorized agents. Successive 
issues and amendments may be made effective on 1 day's notice.

[49 FR 38615, Oct. 1, 1984, as amended at 51 FR 44297, Dec. 9, 1986; 52 
FR 4627, Feb. 13, 1987; 59 FR 2304, Jan. 14, 1994; 59 FR 4844, Feb. 2, 
1994; 61 FR 19860, May 3, 1996]



Sec. 1312.15  Routing not applicable to household goods freight forwarders or contract carriers.

    (a) Routing to be specified. Except as authorized in paragraph (b) 
of this section, the routing to be used shall be specified in a complete 
and clear manner, identifying each carrier and the point of interchange 
in proper order from origin to destination. For motor

[[Page 317]]

carriers, highway numbers need not be listed.
    (b) Open routing. (This paragraph applies to tariffs of railroads.) 
Routing may be provided by publishing a statement substantially as 
follows in the rate tariff:

    The rates in this tariff apply over all routes made by use of the 
lines of any of the carriers parties to this tariff, except as otherwise 
specifically provided on pages ----, in individual rate items, or in 
connection with individual rates.

The exceptions may be stated either by showing that the rate applies 
only via specified routes (affirmative routing), or by showing that the 
rate does not apply via specified routes (negative routing). Affirmative 
routing may be shown in a routing guide, but negative routing may not.
    (c) Where to publish routes. The routes shall be published in the 
rate tariff, in a separate routing tariff or tariffs (a ``routing 
guide''), or in a separate routing tariff or tariffs which are governed 
by an explanation of routes tariff or tariffs. Routes may be published 
in both rate tariffs and routing tariffs.
    (d) Notations in tariff publications. (1) A routing guide shall 
contain the following or similar statement on its title page:

    The routes in this tariff may be used only when rate tariffs provide 
for their application.

    (2) If all of the routes are provided in the rate tariff, the 
following or similar notation shall be shown in the rate tariff under 
the heading ``Routing Instructions'':

    The rates in this tariff apply only via the routes specified on 
pages [or ``in items''].

    (3) If all of the routes are provided in the routing guide, the 
following or similar notation (with appropriate tariff reference) shall 
be shown in the rate tariff under the heading ``Routing Instructions'':

    The rates in this tariff apply only via the routes specified in 
[here show ICC designation] for carrier parties to this tariff.

    (4) If the rate tariff contains routing and also refers to a routing 
guide, an appropriate notation shall be published in the rate tariff 
under the heading ``Routing Instructions.'' The notation shall clearly 
state the circumstances when the routing in the rate tariff applies and 
when the routing in the routing guide applies.
    (e) Number of routing guides. A rate may not be subject to more than 
one routing guide except--
    (1) Joint rates of a rail subsidiary or a Class III rail carrier 
with two or more connecting or parent rail carriers may refer to the 
routing guides of each of the connecting or parent carriers;
    (2) If territorial routing guides are published, an interterritorial 
rate may refer to one guide for each of the separate territories 
involved; and
    (3) Reference may be made to separate routing guides of any of the 
participating carriers for internal routing over each of the carrier's 
lines.
    (f) Combined routing guide/participating carrier tariff. A routing 
guide may be combined with a participating carrier tariff, or a combined 
participating carrier and points of service tariff, provided the routing 
provisions are separate and the requirements of this section are 
otherwise complied with.
    (g) Emergency routing clause. The following provision or one of 
similar effect may be published under the heading ``Routing 
Instructions'' in connection with joint rates on property:

                            Emergency Routing

    The joint rates in this tariff apply via the routes and through the 
transfer points authorized in this tariff, except:

    When, because of pronounced traffic congestion (not an embargo), 
detours or other similar emergencies, or through carriers' error, 
carriers forward shipments by other transfer points of the same carriers 
or over the lines of other carriers parties to this tariff, the rate 
specified in this tariff will apply if it results in lower charges than 
the otherwise applicable rate over the actual route of movement.

    (h) Cancellation of or surcharges to joint routes or rates. (This 
paragraph applies only to rail carriers.) Cancellations of joint rates 
or routes or surcharges to them under the authority of 49 U.S.C. 10705a 
shall have a clear statement to that effect in the tariff publication.

[49 FR 38615, Oct. 1, 1984, as amended at 51 FR 44297, Dec. 9, 1986]

[[Page 318]]



Sec. 1312.16  Sectional tariffs.

    Tariffs may be arranged in ``sections'' to separate different kinds 
of rates or provisions, provided the sections are consecutively numbered 
or lettered and differentiation among sections is clear.



Sec. 1312.17  Amendments.

    (a) How made. An amendment is a change in, addition to, or 
cancellation from a tariff. Supplements are tariff publications to be 
used to amend bound tariffs (see Sec. 1312.18) and new or revised pages 
are tariff publications to be used to amend looseleaf tariffs (see 
paragraph (d) of this section). Supplements may also be used to amend 
looseleaf tariffs as provided in paragraph (d)(16) of this section.
    (b) Lists of participating carriers. (This paragraph does not apply 
to participating carrier tariffs.)
    (1) In bound tariffs, the list shall be amended by--
    (i) Publishing a complete new list containing all changes and 
canceling the prior list; or
    (ii) Publishing a cumulative list of all changes, alphabetically 
arranged either by code or carrier name, and the statement: ``The list 
of participating carriers is as shown in the tariff except for the 
following changes.'' Only one cumulative list may be in effect at one 
time. A carrier's participation shall be canceled by showing the 
carrier's complete name, together with the word ``Cancel'' or other 
suitable provision. Changes shall be carried forward in subsequent 
amendments to the list as reissued matter.
    (2) In a looseleaf tariff, the list shall be amended either by (i) 
republication of the page(s) on which the list appears, indicating the 
cancellations, additions and changes. The canceled carriers' names shall 
be republished on a separate page(s) at the end of the list, indicating 
when the cancellation was first effective, until all provisions in the 
tariff referring specifically to the carrier(s) have been removed from 
the effective pages. The pages containing the list shall refer to the 
page(s) containing the list of canceled carriers; or (ii) reissuing the 
affected page(s) with an appropriate symbol to show elimination of a 
carrier.
    (3) Concurrent with the cancellation of a carrier from the 
participating carrier list, all provisions specifically referring to 
that carrier shall be appropriately amended unless--
    (i) The cancellation is in connection with the publication of a 
complete adoption of the rates of that carrier by another (see 
Sec. 1312.20); or
    (ii) The method permitted in paragraph (b)(4) of this section is 
used.
    (4) A carrier's participation may be canceled by publishing a 
blanket cancellation notice directly with the list of participating 
carriers, and referring to the notice when canceling the carrier's name 
from the list. If this method is used, all provisions specifically 
referring to that carrier shall be amended as soon as possible. During 
the interim, an item or provision which specifically refers to that 
carrier may not be republished unless the reference is concurrently 
removed.
    (c) Amendments to bound tariffs. (1) Provisions shall be amended by 
publication of the entire item or segment in a supplement, except as 
otherwise authorized.
    (2) When an item is to be amended, the new item shall be given the 
same number with a letter suffix, starting with the letter A, continuing 
through Z, then starting with AA, BB, and so on. Except as provided in 
paragraph (c)(3) of this section, the new item shall specifically cancel 
all uncanceled items in the same series. For example: ``Item 40-A 
cancels Item 40''; ``Item 40-C cancels Item 40-B and Item 40-A'' (if 
Item 40-A had not been canceled previously).
    (3) Items need not specifically cancel the previous items in the 
same series if the tariff contains a rule explaining the process in 
which items are superseded. For example, the rule may provide that the 
use of the next letter suffix automatically cancels the prior item.

The rule shall be maintained for the life of the tariff. Specific 
cancellation shall be made of items containing rates or provisions under 
suspension or held in force by reason of suspension.
    (4) When provisions of a numbered segment, other than an item, are 
to be amended, the new segment shall be given the same number, without a 
suffix, and specifically cancel all prior

[[Page 319]]

uncanceled segments bearing the same number. The cancellation shall be 
made by referring to the segment number and its location, i.e., 
``Section 3, cancels Section 3 on pages 50-56 of the tariff.''
    (5) When the provisions of an unnumbered segment are to be amended 
or canceled, the previous segment shall be canceled by clearly 
indicating the matter and referring to its location.
    (6) Amendment in part without bringing forward the item or segment 
in its entirety, may be made of items or segments containing only--

Tables of contents;
Lists of--participating carriers, commodities, or points of service;
Indexes of--commodities, origins, or destinations;
Statements of carriers' operating authorities;
Explanations of--routing, abbreviations, reference marks, or notes;
Package descriptions; or
Tables of--rates, rate base numbers, or other figures comprising more 
than two pages.

    (7) If a reference mark in a rate table is amended, the rates need 
not be republished provided the changed reference is explained in the 
explanation of reference marks and a list of items that use the mark is 
included.
    (8) When amending a figure at the intersection of a headline and 
sideline point of tables of rates, rate base numbers or other figures, 
either the entire vertical column or entire horizontal column of figures 
in which the change appears shall be reproduced. In no case, however, 
shall the format of the tables be changed during the life of the tariff.
    (9) Partial amendments shall be published so that it is clear what 
matter is being added, changed or canceled.
    (10) The following notation or one to similar effect shall be shown 
with a partial amendment of an item or segment containing station index 
numbers:

    The index numbers of stations in this supplement correspond with the 
index numbers of the same stations shown on pages ---- to ----, 
inclusive, of the tariff, with the following additions and deletions.

    (11) Additions to an item may be published without bringing forward 
the entire item by stating, e.g., ``Refer to item 100 and add . . . .''
    (12) Canceled matter may not be reproduced in an item or segment 
effecting a cancellation except to the extent necessary to identify the 
subject matter.
    (13) An expiration or cancellation statement of an entire item or 
segment shall be treated the same as any other reissued matter in 
subsequent supplements.
    (14) If part or all of the matter in an item or segment is 
transferred to another tariff or to a different location in the same 
tariff, that item or segment shall--
    (i) Be revised in the regular manner; and
    (ii) Show where the transferred matter will thereafter be found.
    (d) Amendments to looseleaf tariffs. (1) New pages added at the end 
of the tariff shall be designated as ``Original'' and consecutively 
numbered beginning with the number following the number of the last page 
of the original tariff.
    (2) Other new pages shall be designated as ``Original'' and given 
the same number as an existing page (if the tariff contains pages 
printed on both sides of the sheet, use the higher number) followed by a 
single suffix letter, in alphabetical sequence starting with ``A''. No 
other system or variation may be used.
    (3) Both sides of a sheet shall be given page numbers when adding 
new pages to a tariff containing pages printed on both sides of the 
sheets. If one side is intentionally left blank, the page shall contain 
a statement to that effect.
    (4) Amendment of a title page shall be made by reprinting it and 
giving it a revision number. The first amendment shall be designated as 
``1st Revised Title Page'', and so on in consecutive numerical order. 
Revised title pages shall show the following under their effective 
dates: ``Original Tariff effective (here show the effective date of the 
original tariff).'' The revised page shall specifically cancel all the 
uncanceled title pages to the same tariff. The cancellation shall be 
shown with the new designation, for example, ``1st Revised Title Page 
cancels Original Title Page.''
    (5) (This paragraph does not apply to title pages.)

[[Page 320]]

    (i) Amendment of a page shall be made by reprinting it and giving it 
a revision number. The first amendment shall be designated as ``1st 
Revised Page ----,'' and so on in consecutive numerical order. Suffixes 
or prefixes may be used. See Sec. 1312.7(b). The revised page 
designations shall be shown in the same corner as original page 
designations are shown.
    (ii) If the pages being amended are to a tariff which contains pages 
printed on both sides of the sheets, both sides of the sheets shall be 
reprinted. If changes are not being made in the tariff matter on one 
side of the sheet, the following notation shall be shown with the new 
revision number: ``Change in revision number ---- only.''
    (iii) Except as provided in paragraph (d)(7) of this section, 
revised pages shall cancel all uncanceled pages in the same series. The 
cancellation shall be shown with the new designation, for example, ``2nd 
Revised Page 10 cancels 1st Revised Page 10.''
    (6) If a page is rejected, its designation (i.e., ``original'', 
``1st Revised'', etc.) may not be used again in that page series. The 
rejected page may not be referred to on a subsequent page as having been 
canceled, amended or withdrawn. The page issued in its place shall use 
the next revision number and bear the following:

    Issued in place of (here identify the rejected page), rejected by 
the Commission.

    (7) Pages, other than title pages, need not specifically cancel 
previous pages in the same series if the tariff contains the following 
statement or one to similar effect:

    Unless otherwise provided, amendment of a page will be made by 
reprinting the page and showing a revision number. The revision numbers 
will be used in consecutive numerical order beginning with ``1st Revised 
Page''. A revised page cancels any uncanceled revised or original pages 
which bear the same page number.

The statement shall be maintained for the life of the tariff. Specific 
cancellation shall be made of pages containing rates or provisions under 
suspension or held in force by reason of suspension.
    (8) Except as otherwise authorized, looseleaf tariffs may not be 
further amended when the number of sheets (including check sheets) 
containing canceled pages would exceed six times the number of sheets 
(including check sheets) containing effective pages. This limitation may 
be exceeded if necessary to comply initially with a Commission decision 
or if specifically authorized.
    (9) If a revised page omits rates or other provisions which had been 
shown on the page it cancels, the disposition of the omitted matter 
shall be indicated. If the matter is transferred to another tariff or to 
another page in the same tariff, that shall be stated. If transferred to 
another page, the page to which it is transferred shall contain the 
following notation directly with the transferred matter--

    For [here state whether rates, rules, provisions, etc., as 
appropriate] previously in effect, see page(s) ----.

or an explanation of the transfer in some other manner. If matter is 
canceled or expired and not transferred, the page shall so indicate, 
identifying the canceled or expired matter only to the extent necessary 
to show what is affected.
    (10)(i) If five or more pages of a tariff are to be reissued at one 
time with the same effective date to cancel all provisions or to 
transfer all provisions to other pages, the reissue and the cancellation 
may be accomplished by a single printing, showing the individual 
cancellations. (If for a tariff which has pages printed on both sides of 
the sheets, this method may only be used when both pages of any 
particular sheet are being canceled or transferred.)
    (ii) The reissued matter shall clearly show the designation of the 
page(s) to which matter is being transferred. See paragraph (d)(9) of 
this section.
    (iii) Where the page designation for that tariff would otherwise 
appear (i.e., the upper left-hand or upper right-hand corner), the 
following shall be shown, completed;

Revised Page____________________________________________________________
Cancels Page____________________________________________________________

    (iv) The automatic cancellation provisions of paragraph (d)(7) of 
this section may not be used with this procedure.

[[Page 321]]

    (v) This procedure may not be used when new or other provisons are 
to be substituted on the pages. However, the pages may be subsequently 
reissued individually in the regular manner.
    (11) The check sheet (see Sec. 1312.13(b)) shall be reissued and 
filed with the filing of any amendment. The revised check sheet shall--
    (i) List all effective pages in numerical sequence;
    (ii) Show the latest designation of each page;
    (iii) Indicate those pages which have been revised or added since 
the previous check sheet;
    (iv) Indicate those pages or supplements which contain only matter 
under suspension or held in force by reason of suspension; and
    (v) List all effective, or filed and yet to be effective, 
supplements.
    (12) If the ``correction number, check off'' type of check sheet is 
used, looseleaf page amendments issued and filed at one time shall show 
the same correction number. The first filing shall bear correction No. 
1, the second correction No. 2, and so on in consecutive order. In lieu 
of the foregoing, carriers or agents utilizing the ``correction, check 
off'' type of check sheet may issue and file looseleaf page amendments 
with sequentially numbered correction numbers. An explanation of the 
correction numbering system shall be given.
    (13) Supplements (except supplements canceled by other supplements 
of like or similar character or content) shall be canceled by reissue of 
the check sheet containing the updated list of pages, adding the words 
``also cancels Supplement No. --'' immediately following the words 
``cancels ---- page ----''.
    (14) Any indexes or tables of contents shall be amended concurrently 
with changes in the contents of the tariff to show additions, 
cancellations, and changes as to points and commodities.
    (15) Supplements to looseleaf tariffs may be used for the following 
purposes--
    (i) Conversion or percentage supplements to provide general rate 
changes, see paragraph (j) of this section and Sec. 1312.18(h).
    (ii) Transfer or cancellation of provisions, see Sec. 1312.19.
    (iii) Suspended matter, see Sec. 1312.21.
    (iv) Seasonal rates or fares, see Sec. 1312.36.
    (v) Transfer of operations--(change in name and control), see 
Sec. 1312.20.
    (vi) Take-over publications (transfer of agent), see Sec. 1312.10; 
or
    (vii) Postponement of tariffs or tariff matter, see Sec. 1312.39.
    (e) Reinstatement of canceled or expired provisions shall be by 
republication. If provisions have been eliminated by cancellation or 
expiration, they may only be reinstated by republication.
    (f) Changes are to be indicated. (for suggested reference marks see 
Sec. 1312.13.)
    (1) [Reserved]
    (2) When a change of the same character is made in a substantial 
number of rates a statement may be used in place of symbolizing each of 
the individual rate changes. The statement shall note the nature of the 
change. The statement shall be in distinctive type at the top of the 
title page of the publication or the top of the page(s), containing the 
rates, with exceptions, if any, so noted. An appropriate reference mark 
shall be used to indicate any other change not indicated by the general 
statement on the publication.
    (3) When tariff matter subject to a reference mark or the wording 
required by this paragraph is reissued without change, the reference 
mark or wording shall be omitted.
    (g) Reissued matter. (1) Matter brought forward without change from 
one supplement to another in the same tariff shall be designated as 
``Reissued'' and the supplement number from which it is reissued shown, 
and the effective date of that supplement. Except as provided in 
paragraphs (g) (2) and (4) of this section, this shall be accomplished 
in one of the following ways:
    (i) The information shall be published with the reissued matter, for 
example, ``Reissued from Supplement 1, effective June 1, 1990'', or
    (ii) With the reissued matter, show in a square or substitute (see 
Sec. 1312.13) the number of the supplement from which it is reissued; 
and
    (iii) under the explanation of reference marks in the supplement, 
show the supplement number in the square

[[Page 322]]

or substitute and explain it, for example, ``[1] Reissued from 
Supplement 1, effective June 1, 1990''; or under the explanation of 
reference marks in the original tariff, show the empty square or 
substitute, with the following or similar explanation:

    Reissued from supplement bearing the number [enclosed within the 
square]. To determine its original effective date, see that supplement.

    (2) If the reissued matter is brought forward from a supplement and 
its effective date had been changed by another supplement, this 
information shall be shown in the following manner:

    Reissued from Supplement ----, effective ----, per Supplement ----.

This statement shall either be shown directly with the reissued matter, 
or elsewhere on the same page with the reissued matter referring to it. 
The number-in-the-square method or substitute may not be used in this 
instance.
    (3) Matter in looseleaf tariffs being brought forward without change 
from one page to the next revision of that page shall only be referenced 
when republishing the cancellation of participating carriers as required 
by paragraph (c)(2) of this section. The reissue of the canceled 
carriers may be indicated by--
    (i) Showing the square reference mark or substitute with the 
revision number of the page from which the carriers' names are being 
reissued; and
    (ii) Publishing under the explanation of reference marks in the 
tariff, the following or similar note:

    Reissued without change from the issue of the same page bearing the 
revision number [enclosed within the square]. To determine the original 
effective date see that revised page.

    (4) If the effective date shown for a provision in the prior 
supplement or looseleaf page being canceled is a date later than the 
general effective date of the new supplement or looseleaf page in which 
the provision is being reissued, the number in a square reference mark 
or substitute may not be used. The reference to the prior supplement or 
looseleaf page and the later effective date shall be stated in full 
directly with the reissued provision.
    (h) Change in the explanation of reference marks and notes. (This 
paragraph does not apply to the explanation of the reference marks used 
in referring to an item showing expiration dates.)
    (1) A change in or cancellation of an explanation of a general 
reference marks or general note or of an item or other provision the 
explanation refers to, shall be accompanied by--
    (i) The republication of all provisions which refer to the reference 
mark or note; or
    (ii) The publication, directly with the changed or canceled 
explanation, item or other provision, of a list of each tariff provision 
which refers to the reference mark or note, identifying the provisions 
by item or page number, and supplement number, if any; or
    (iii) The publication, directly with the changed or canceled 
explanation, item or other provision, of a statement generally described 
the effect of the change or cancellation. If this method is used, a 
notation shall be made at the top of the page(s) containing the change 
or cancellation that the page(s) contains a changed or canceled 
reference mark or note, or tariff provision referred to by the mark or 
note.
    (2) If new reference marks are added, they need be explained only in 
the items where they apply rather than amending the original explanation 
of reference marks.
    (3) Two explanation of reference mark provisions may be in effect 
where the second is used to change or add references and the first 
remains unchanged.
    (i) Matter issued under decision or other authority. Amendments 
published under authority of a Commission decision requiring specific 
action or a Commission decision or regulation of this part which permits 
less than statutory notice or departure from outstanding requirements 
shall --
    (1) Refer to the authority and make clear to what tariff it applies;
    (2) State the number of days' notice authorized (if less than 
statutory notice); and
    (3) Briefly identify the relief authorized.

[[Page 323]]

    (j) Conversion supplements to provide general rate changes. (This 
paragraph does not apply to property tariffs of railroads.) Conversion 
supplements are published to convert a substantial portion of the rates 
in a tariff, or the rates in a described category (i.e., commuter fares, 
truckload rates, etc.) to a higher or lower general level, without 
publishing the items or provisions containing the rates.
    (1) The supplement shall show the base rates (i.e., the rates being 
changed) and the new rate.
    (2) The supplement shall contain an application provision reading 
substantially as follows:

    Except as provided in subsequent amendments to this tariff, all 
rates and charges in this tariff, as amended, or as may subsequently be 
amended, are, or will on their effective dates be, [specify whether 
increased or reduced] as follows for the period this supplement is in 
effect.

If there are exceptions to the application, reference to the location of 
the exceptions shall be shown. If not all of the rates are being 
changed, the provisions shall state the exact category of rates being 
changed, or list the items or sections of the tariff which contain them. 
Immediately following the statement, a clear and explicit application of 
each column of changes shall be published.
    (3) The supplement shall provide the method of determining the 
application of the general increase or reduction on combination rates, 
rates made by use of arbitraries, or other multiple-factor rates.
    (4) The supplement shall contain a provision stating the 
mathematical procedure or formula to be used in arriving at the new 
rates when the supplement does not include all the tariff rates and 
charges to be changed. The supplement shall also provide a method of 
disposing of resulting fractions.
    (5) The base rates and new rates shall be stated in the same 
monetary unit as used in the tariff. If the tariff names rates in more 
than one monetary unit, a statement of how the change is to be applied 
to the remainder of the rates shall be published.
    (6) The supplement may not provide for the application of one 
increase or reduction, and then subject the resultant rate to another 
rate increase or reduction.
    (7) Only matter concerning the application of the conversion may be 
published in the supplement.
    (8) The title page shall indicate whether changes are increases and/
or reductions. The different categories of changes shall be 
appropriately referenced.
    (9) Only one conversion supplement to a tariff may be in effect at 
one time.
    (10) An exception item or note may be republished from the 
conversion supplement into a regular supplement of a bound tariff in 
order to add, eliminate or change provisions. If exceptions are 
published in a conversion supplement to a looseleaf tariff, they may not 
be amended. The exceptions, however, may be published in the tariff 
proper (provided the conversion supplement makes proper reference) and 
then amended in the regular manner.
    (11) Amendments containing rates or charges becoming effective 
during the effectiveness of a conversion supplement shall state whether 
or not they are subject to the provisions of the conversion supplement 
or the application item, identifying the supplement or item.
    (12) Part of the same general adjustment may be effected by specific 
publication of the rates in a companion supplement or looseleaf page 
amendment, provided--
    (i) The issue and effective dates are the same as the conversion 
supplement; and
    (ii) They are not made subject to the conversion supplement 
provisions.
    (13) Conversion supplements and companion amendments are exempt from 
the supplemental volume provisions of Sec. 1312.18.
    (14) The provisions of this paragraph do not authorize the 
publication and filing of master tariffs or connecting link supplements, 
and conversion supplements may not be filed to tariffs which refer to a 
master tariff for the application of increases or reductions. Special 
tariff authority must be obtained for publication of master tariffs or 
connecting-link supplements.
    (k) Rail cost recovery increases. (1) Rail carriers or their agents 
may publish cost recovery tariffs in master tariff

[[Page 324]]

format to provide increases in rail rates and charges as authorized by 
the Commission under Ex Parte No. 290 (Sub-No. 2), Railroad Cost 
Recovery Procedures. The increases may apply to joint rates and single-
line traffic to the extent adopted by individual carriers. A connecting-
link, blanket, other supplement or general tariff item shall connect the 
affected tariffs to the master tariffs. Annual, accumulated master 
tariffs may be published to expire no later than September 30 of the 
second calendar year following the year in which the tariff became 
effective, by which date all increases shall be transferred to the base 
tariffs. Extension of any expiration dates may, however, be requested. 
The terms of Sec. 1312.18 as to supplemental volume are waived. Blanket 
supplements shall conform to the terms of Sec. 1312.18(h).
    (2) Tariffs containing adjustments under the provisions of this rule 
may be filed to become effective on not less than ten days' notice when 
the Rail Cost Adjustment Factor adopted by the Commission does not 
differ from that proposed by the Association of American Railroads. When 
the Rail Cost Adjustment Factor adopted by the Commission differs from 
that proposed by the Association of American Railroads the notice period 
shall be not less than five days. Reductions to rates published in the 
initial RCCR tariff may be published on one day's notice during the 
period between the publication of the tariff and the first day of the 
calendar quarter for which that tariff applies.
    (3) All cost recovery tariffs filed with the Commission shall state 
that they are being in conformity with the rules in 49 CFR 1135.1 and 
1312.17, and shall be amended under the same timetable applicable to 
cost recovery rate increases, to reflect declines in the cost index. Any 
declines in the index below the level in effect on December 31, 1985, 
will be addressed by postponing authorizations for future cost recovery 
rate increases pursuant to a ``banking'' procedure described more fully 
in Ex Parte No. 290 (Sub-no. 2), Railroad Cost Recovery Procedures, 
served October 17, 1986.
    (l) Supplements to transfer rate changes from master tariffs or 
conversion or percentage supplements into base rates. (1) A supplement 
(not a conversion supplement) may be filed to a bound tariff for the 
purpose of incorporating in the base rates all applicable changes 
effected by the use of a conversion or percentage supplement or a master 
tariff. The supplement may contain matter from prior supplements 
provided those supplements are canceled.
    (2) The title pages of supplements issued under authority of this 
paragraph shall bear an explanation note citing this paragraph.
    (3) If different increases or reductions apply on related articles 
shown in an item or descriptive listing of commodities, the rates may be 
brought forward into the supplement on the basis of the increases or 
reductions applying to the predominant article in the item or 
description, provided a statement is included in the supplement that 
this has been done. The rate changes shall be appropriately referenced 
except as specified in paragraph (l)(4) of this section for exceptions 
concerning symbolization.
    (4) Symbolization of the increases and reductions resulting from the 
normal rounding-off of fractions or from the use of predominant article 
authority may be omitted in the supplement, providing the supplement is 
filed on not less than 45 days' notice and the title page of the 
supplement also bears the following or a similar statement:

    This supplement contains changed bases of rates, charges and 
provisions which result in increases and reductions. The supplement also 
contains variations in wording which result in no change in the rates 
and charges. These changes are not shown by the use of uniform symbols 
which have been omitted under authority of 49 CFR 1312.17.

    (5) Supplements issued under authority of this paragraph shall be 
exempt from the provisions of Sec. 1312.18 governing the volume of 
supplemental matter permissible.

[49 FR 38615, Oct. 1, 1984, as amended at 50 FR 7064, Feb. 20, 1985; 50 
FR 43396, Oct. 25, 1985; 51 FR 37035, Oct. 17, 1986; 51 FR 40171, Nov. 
5, 1986; 52 FR 15726, Apr. 30, 1987]



Sec. 1312.18  Supplements.

    (a) Changing provisions of a bound tariff. A supplement may be used 
to add, delete or change provisions of a bound

[[Page 325]]

tariff. General rules, in addition to rules applicable to tariffs as a 
whole, are provided below. In addition, certain ``special supplements'' 
are authorized, viz:

Suspension supplements, Sec. 1312.21.
Postponing supplements, see Sec. 1312.39.
Bridge supplements, see paragraph (f) of this section.
Blanket supplements, see paragraph (g) of this section.
Adoption supplements, see Sec. 1312.20.
General increase or reduction supplements, see Sec. 1312.17 (j) and (k) 
and paragraph (h) of this section.
Cancellation supplements, see Sec. 1312.19.

    (b) Designation and title page requirements. (1) Supplements to a 
tariff shall be consecutively numbered:
    (2) If a supplement is rejected, its number may not be used again, 
and a supplement issued in its place shall bear the following notation 
with the supplement designation:

    Issued in place of Supplement ----, rejected by the Commission.

    (3) With the supplement identification, the publications the 
supplement cancels shall be shown, as follows:

    Cancels Supplement(s) ----.

    (4) The title page shall list all prior supplements still in effect 
on the effective date of the supplement, with any special supplements so 
indicated.
    (5) A supplement may contain matter having different effective dates 
provided it is clearly explained on the title page.
    (c) Reference marks. Reference may be made to an item or section in 
the original tariff containing the explanations. See Sec. 1312.17 
governing partial amendment of reference marks.
    (d) Updated list of items and units in effective supplements. 
Supplements shall, as necessary, contain cumulative lists of items and 
numbered segments that have been added, changed or canceled by 
supplement (including partial amendments or ``script-clause'' 
amendments), together with reference to the latest supplement in which 
each is published.
    (e) Number of supplements, pages permitted and duration of tariffs. 
(1) Except as otherwise provided, the total number of pages of effective 
regular supplements may not exceed 70 percent of the number of original 
pages. There is no separate limit on the number of supplements.
    (2) The restriction on the number of supplemental pages does not 
apply to a tariff which is reissued within two years, provided the 
following notation is shown on the title page of the original tariff:

    ``A reissue of this tariff will become effective no later than ----
----.''

The date of the next reissue shall be shown, and the notation may not be 
changed or cancelled.
    (3) A supplement may exceed the limitation of paragraph (e)(1) of 
this section if it is to comply with a Commission order and contains no 
other matter.
    (f) Bridge supplements. More than one bridge supplement (a 
publication amending both a bound tariff and its reissue), may be in 
effect at one time provided the contents are separated as to each tariff 
and clearly identified as to the tariff being amended showing the item 
or other segment of each tariff that is being added, changed or 
canceled. The limitations of paragraph (e)(1) of this section do not 
apply.
    (g) Blanket Supplements. A blanket supplement (a common supplement 
issued jointly to two or more tariffs of the same carrier or agent) may 
be filed if, in addition to compliance with other rules--
    (1) The number of copies ordinarily required for each tariff 
supplement is filed; and
    (2) The supplement contains, under a heading ``List Of Tariffs 
Supplemented Hereby'', the number of each supplement and ICC designation 
of each tariff being supplemented. Any additional provisions (such as 
cancellation notices, items containing matter held in effect, etc.) 
shall be similarly shown.
    (h) Percentage supplements to provide general rate changes. (1) A 
supplement, which expresses the amount of change as a percentage by 
which the tariff's rates and charges are to be increased or reduced, may 
be filed to any tariff to provide a general change in the level of all 
or substantially all rates and charges, or all or substantially all the 
rates and charges in a specific category in the tariff.

[[Page 326]]

    (2) The supplement shall clearly explain its application and shall 
state where any exceptions to its application are listed. It shall show 
how to compute the increased or reduced rates from the percentages 
shown; how to dispose of fractions; how to compute multiple-factor rates 
made by the use of arbitraries or other means. Only matter concerning 
the percentage change may be published in the supplement.
    (3) The title page of a percentage supplement shall describe the 
nature of the changes effected by the supplement. Only one percentage 
supplement may be in effect at one time and shall be subject to a two-
year expiration date which shall be shown on the supplement's title 
page. Tariff amendments containing rates or charges becoming effective 
during the effectiveness of a percentage supplement shall state whether 
they are subject to the provisions of the percentage supplement.

[49 FR 38615, Oct. 1, 1984, as amended at 50 FR 459, Jan. 4, 1985]



Sec. 1312.19  Cancellation of tariff and transfer of provisions.

    (a) Cancellation of an entire tariff. (1) Except as provided in 
paragraph (a)(4) of this section, a tariff shall be canceled by issuing 
a supplement. The supplement shall--
    (i) State on its title page that it cancels the tariff;
    (ii) Refer by ICC designation to the tariff(s), if any, which 
applies in place of the canceled provisions; and
    (iii) Identify provisions being transferred (not discontinued) and 
the tariffs to which they are being transferred.
    (2) Tariff publications to which a transfer is made shall so 
indicate.
    (3) If, in connection with transfer of provisions, a carrier is 
being added as a participant in an agent's tariff, carrier's name and 
alpha code must be added to the list of participating carriers.
    (4) When the provisions of a tariff are to be transferred to a new 
tariff only, issued by the same carrier or agent(s), the cancellation 
shall be made by the new tariff by showing on its title page, or within 
(as provided in Sec. 1312.12(b)), that it cancels the prior issue. If 
some of the provisions of the prior issue are being discontinued, the 
new tariff shall indicate the tariff(s) containing provisions, if any, 
which will apply in the place of the prior issue.
    (b) Cancellation of part of a tariff. Cancellation of a part of a 
tariff shall be made by publishing amendments in the regular manner, or 
by a statement in a special supplement, if--
    (1) The statement identifies the canceled material (by item, 
section, page, etc.);
    (2) Matter being transferred to another tariff(s) is identified and 
the tariff(s) to which it is transferred is identified;
    (3) Reference is made to the tariff(s) (if any) which will apply in 
place of the discontinued matter;
    (4) Tariff publications to which matter is being transferred 
indicate the tariff which formerly contained the matter; and
    (5) The effective date of the cancelling supplement and the 
publication(s) effecting any transfer is the same. The special 
supplement shall remain in effect for the life of the tariff, or, in the 
case of looseleaf tariffs, when all the affected pages have been 
reissued (the reissued pages shall refer to the special supplement for 
the initial cancellation of the involved provisions). The special 
supplement to a bound tariff may contain cancellations in the regular 
manner and is exempt from the supplemental limitations in this part. In 
a bound tariff, a reissue of an item or segment affected by the 
statement form of cancellation shall specifically cancel the prior item 
or segment and make reference to the special supplement for the initial 
cancellation.



Sec. 1312.20  Transfer of operations--change in name and control.

    (a) General. (1) As used in this section--
    (i) Old carrier refers to the carrier or party whose name is changed 
or whose operating authority is transferred;
    (ii) New carrier refers to the new name of the old carrier or to the 
party to which the operating authority is transferred; and
    (iii) Adoption publications refers to adoption notices, and 
combination

[[Page 327]]

adoption notices and adoption supplements.
    (2) When a carrier's name is lawfully changed or its operating 
authority transferred, tariff adjustments must be made. The procedure to 
be followed depends on the particular circumstances.
    (b) Purpose of adoption notices. (1) Adoption notices shall be filed 
to reflect new ownership or control when--
    (i) A carrier's name is lawfully changed;
    (ii) A carrier's operating authority is transferred, entirely or 
partially; or
    (iii) A fiduciary (receiver, trustee, etc.) assumes possession and 
control of a carrier's property; and when the carrier wishes (for 
whatever period) to use the old carrier's tariffs.
    (2) In addition to the adoption notice, an adoption supplement shall 
be filed to reflect the new carrier's adoption of the old carrier's 
tariff(s).
    (c) When adoption notice only is required. The new carrier shall 
file an adoption notice, in its own name and in tariff form, if the old 
carrier has no effective tariffs of its own (or predecessor's) issue to 
be adopted, but does have rates or other provisions in an agent's or 
another carrier's tariff(s) to be adopted.
    (d) Form of adoption notice. (1) The adoption notice shall be 
prepared substantially as follows (names and numbers used for 
illustration only):

ICC JDTI 100

John Doe Transport, Inc., Adoption Notice [identify what is adopted and 
from whom]

    Issued: [show date prepared]
    Effective: [show date]
    Issued by [identify publisher and address].

    (e) Combination adoption notice and adoption supplement. If the old 
carrier has one or more effective tariffs (not adoption notices) of its 
own (or predecessor's) issue, the new carrier shall file, in its own 
name and in tariff form, a combination publication which shall serve as 
both its adoption notice and adoption supplement (see paragraph (o) of 
this section when new carrier amends old carrier's tariff in part). The 
publication shall be prepared as provided in paragraph (f) of this 
section. Two copies of the publication (serving as an adoption notice 
tariff) plus two additional copies for each tariff supplemented shall be 
filed.
    (f) Form of combination adoption notice and adoption supplement. (1) 
If filing of a combination adoption notice and adoption supplement is 
required under paragraph (e) of this section, and the old carrier's 
authority is adopted entirely, the combination publication shall be 
prepared as provided in paragraph (d) of this section, except--
    (i) The upper right corner shall identify the publication as the new 
carrier's adoption notice and also as an adoption supplement to each of 
the old carrier's tariff(s) involved.

[Example:
Adoption Notice Tariff......................................ICC JDTI 100
Adoption Supplement 8 to...................................ICC ABCD 200*

    *Show transferor's name]; and

    (ii) The combination publication shall contain a second paragraph 
prepared substantially as follows:

    On the effective date shown below, each tariff supplemented by this 
publication became the tariff of John Doe Transport, Inc., as stated in 
its adoption notice shown above.

    (2) If filing of a combination adoption notice and adoption 
supplement is required under paragraph (e) of this section, and the old 
carrier's authority is adopted partially, the combination publication 
shall be prepared as shown in paragraph (f)(1) of this section, with the 
necessary changes to reflect partial adoption.
    (3) Adoption supplements shall be assigned the next unused 
supplement number to the tariff supplemented. If the tariff is adopted 
partially, the old carrier shall reserve two supplement numbers for each 
new carrier, to be used for adoption and cancellation supplements (see 
paragraph (o) of this section for reservation of supplement numbers).
    (g) ICC designation to be used. The ICC designation assigned to 
adoption notices shall be in the new carrier's series, except that 
adoption notices filed by a fiduciary shall be in the old carrier's 
series and the designation shall be identified by naming the old carrier 
followed by ``series.'' If no code has been assigned, a ``blank code 
such as ``MF-A1000'' may be used.
    (h) Effective date of adoption publications. (1) The effective date 
of adoption publications is the date of consummation of the transaction 
for which such

[[Page 328]]

publications are required. Adoption publications shall be filed promptly 
and, if possible, prior to their effective date, but in no case later 
than 60 days thereafter.
    (2) Each agent or carrier to whom the old carrier issued a 
concurrence or power of attorney being adopted shall be furnished a copy 
of the adoption publication.
    (3) If the transfer of operating authority to the new carrier 
requires approval by the Commission, the effective date of the 
publication may not be prior to the effective date of the approval.
    (i) When name of old carrier need not be shown. If a carrier re-
adopts tariffs of its own issue, which had been adopted by another 
party, it need not identify those tariffs as being in its own series.
    (j) Temporary control. (1) If a party's authority to assume 
operating control of a carrier under section 11349 of the Act is not 
made permanent, the old carrier shall reassume operating control by 
filing an adoption notice.
    (2) The effective date of the adoption publication is the date the 
other party's authority to assume operating control of the carrier 
expires or is vacated.
    (k) Fiduciaries. (1) When a fiduciary assumes possession or 
operating control of a carrier, tariff publications and other 
instruments shall show the name of the carrier, followed by the name and 
capacity of the fiduciary. (Also see 49 CFR 1181.5--Operations by 
fiduciaries.)
    (2) Upon termination of the fiduciary's possession or control, the 
party assuming control of the carrier's property shall comply with the 
regulations in this section.
    (l) Concurrences and powers of attorney. If the old carrier's 
operating authority is adopted entirely, its effective concurrences and 
powers of attorney become those of the new carrier and remain effective 
until canceled, revoked, or replaced by the new carrier.
    (m) Tariffs issued by other carriers or by agents. (1) If the old 
carrier is listed in a participating carrier tariff, the participating 
carrier tariff shall be amended as provided in Sec. 1312.25.
    (2) If tariff provisions contained in a tariff not issued in the old 
carrier's name need to be adopted, and the tariff contains its own list 
of participating carriers, the tariff shall be amended on lawful notice 
to reflect the adoption, in the manner required by paragraphs (m)(3) and 
(4) of this section.
    (3) If adopted entirely, the old carrier's name shall be brought 
forward and its participation canceled. Directly with the cancellation 
shall be reference to a statement substantially as follows:

    [New carrier's name] by its adoption notice [ICC designation] which 
became effective on [date], is substituted for [old carrier's name] 
wherever it appears in this tariff.

    (4) If adopted partially, the old carrier's name may be canceled 
only if there are no provisions remaining in the tariff for its account. 
If not already shown as a participant, the new carrier shall be added. 
Directly with the old carrier's name (or cancellation of its 
participation) shall be reference to a statement substantially as 
follows:

    [New carrier's name] by its adoption notice [ICC designation] which 
became effective on [date], to the extent that they contain rates or 
other provisions applying [describe the authority transferred], is 
substituted for [old carrier's name] wherever it appears in this tariff.

    (n) Cancellation of provisions in partially adopted tariffs. (1) 
Rates or other provisions in a tariff in the old carrier's name, which 
apply locally and are involved in the partial transfer of authority to a 
new carrier, shall be canceled and published in tariffs of the new 
carrier's (or its agent's) issue.
    (2) Items, units, or looseleaf pages may not be reissued to effect 
the cancellation. Instead, the cancellation shall be made by a statement 
substantially as follows:

    Provisions formerly shown in [identify provisions by item number, 
segment, page, section, table, etc.] which were adopted by [new 
carrier's name] are canceled. Apply provisions in [identify provisions 
by item number, segment, page, section, table, etc.] of [issuing 
carrier's or agent's name and ICC designation of tariff].

    (3) The cancellation statement shall be published in a special 
supplement to

[[Page 329]]

the tariff, whether bound or looseleaf, which--
    (i) Shall be filed on lawful notice within 120 days of the adoption 
publication's effective date;
    (ii) Is exempt from limitations on volume of supplemental matter 
imposed by this part;
    (iii) Shall become effective concurrently with the establishment of 
corresponding provisions for the new carrier's account; and
    (iv) Shall remain in effect for the life of the tariff.
    (4) Rates and other provisions covering the adopted authority shall 
be filed on lawful notice in the new tariff(s) to become effective 
concurrently with the cancellation of the corresponding provisions from 
the old carrier's tariffs.
    (o) Reservation of supplement numbers for new carrier's use. Two 
unused supplement numbers shall be reserved for each new carrier's use. 
One of the numbers shall be assigned to the adoption publication and the 
other to the cancellation supplement.
    (p) Subsequent supplements or looseleaf pages. (1) Subsequent 
supplements or looseleaf pages to adopted tariffs issued by the old 
carrier (or its predecessor) shall show the name of the carrier in whose 
ICC designation series the tariff was issued originally, except when the 
old carrier re-adopts its own tariff.
    (2) Subsequent supplements or pages shall be filed by--
    (i) The new carrier if the tariff was adopted entirely; or
    (ii) The old carrier if the tariff was adopted partially, except as 
provided in paragraph (n) of this section.
    (q) Describe former tariff when canceling. When canceling tariffs 
issued or adopted by the old carrier, the new carrier shall identify the 
tariffs in the cancellation notice by--
    (1) ICC designation;
    (2) Issuing carrier's name; and
    (3) Reference to the series in which the tariff was published, if 
the old carrier published tariffs in more than one series.
    (r) Adoption supplements are noncounting. Adoption supplements are 
exempt from the limitations on volume of supplemental matter as 
contained in Sec. 1312.18.

[49 FR 38615, Oct. 1, 1984, as amended at 59 FR 10305, Mar. 4, 1994]



Sec. 1312.21  Suspended matter.

    (a) Effect of suspension. When the Commission suspends one or more 
rate(s), provision(s) or publication(s), that suspended matter is 
postponed until the suspension period runs out.
    (b) Supplement required. (1) A supplement announcing the suspension 
shall be filed to the involved tariff(s). Two methods of publishing may 
be used. One is to issue a separate supplement for each suspension 
proceeding; the other is to issue a consolidated suspension supplement 
which contains notices of all suspension proceedings involving the 
tariff. Only one consolidated supplement to a tariff may be in effect at 
one time. The title page of either type of supplement shall--
    (i) Identify the Commission's suspension docket number;
    (2) Show an issue date but not an effective date; and
    (3) Comply with the requirements governing tariff amendments, except 
as otherwise provided in this section.
    (c) Content of supplement. The supplement shall:
    (1) Identify the rates, provisions or publications which have been 
suspended;
    (2) State that those rates, provisions or publications are ``under 
suspension and may not be used until [here show either the date to which 
the matter has been suspended, or a later date, or state ``this 
suspension notice is canceled'']'';
    (3) Identify the rates, provisions or publications that will apply 
in place of the suspended matter;
    (4) Correct by statement any cancellations which would have the 
effect of canceling the suspended matter or the matter held in force; 
and
    (5) Correct the listing of effective supplements on previous 
supplements' title pages.
    (d) Additional requirements for consolidated supplements. (1) The 
consolidated supplement shall provide information for each suspension 
proceeding.

[[Page 330]]

    (2) The matter shall be amended and reissued in the regular manner, 
except as follows:
    (i) If it is necessary to issue a publication to reflect changes in 
a corrected decision of the Commission, the supplement shall be reissued 
and explained with the appropriate changes made.
    (ii) If the suspended matter is made effective, canceled, or 
reissued the involved matter shall be canceled (in the regular manner) 
in the same supplement as the change or reissue of the suspended matter.
    (iii) If the suspended matter becomes effective because of the 
expiration of the suspension or postponement period, the explanatory 
matter shall be canceled (in the regular manner) in the next regular 
supplement to the tariff.
    (e) Additional requirements for separate suspension supplements. (1) 
Separate supplements announcing individual suspensions to a bound tariff 
shall be canceled by the--
    (i) Supplement containing the change or reissue of the suspended 
matter; or
    (ii) By the next regular supplement if the suspended matter becomes 
effective because of the expiration of the suspension of postponement 
period.
    (2) Separate supplements announcing individual suspensions to a 
looseleaf tariff shall be canceled by reissuing the check sheet with an 
effective date concurrent with the change or reissue.
    (3) Suspension information may not be canceled in full unless all of 
the involved matter under suspension is canceled, becomes effective or 
is reissued.
    (f) Extension of suspension period. If the Commission extends the 
suspension period, the suspension notice shall be republished, canceling 
the first notice, and the statements adapted to the new action taken, 
with reference to the facts of the first suspension. Subsequent handling 
of the matter shall proceed as prescribed for suspension matters in this 
section.
    (g) Suspended matter reissued prior to notice. If suspended matter 
has been reissued prior to the filing of the explanatory notice, the 
notice shall cancel (by statement) the reissued matter. The cancellation 
statement shall have the same effective date as the reissued matter.
    (h) Changed suspended matter. If suspended matter has been changed 
prior to the filing of a suspension notice, the matter shall be 
republished in the regular manner to remove any violation of the 
suspension decision, as provided in paragraph (i) of this section. Also 
see paragraph (k) of this section.
    (i) Reissuing suspended matter after notice. (1) If a suspension 
notice has been filed, the matter under suspension and the matter held 
in force by reason of the suspension may be reissued (without change) in 
the regular manner provided the explanatory notice is brought forward 
from the suspension supplement.
    (2) If suspended matter or matter held in force is reissued, the 
publication shall be made in a manner that insures that if the 
suspension or postponement period ends, the matter held in force is 
canceled or superseded by the effectiveness of the suspended matter.
    (3) Original tariffs or supplements containing reissued suspended 
matter shall identify the suspended matter.
    (j) Postponement of suspended matter. (1) A postponement notice may 
be filed at any time on 1 day's notice during the suspension period, 
provided--
    (i) It becomes effective prior to the end of the suspension period;
    (ii) It states that the postponed matter may not be used during the 
postponement period; and
    (iii) The specific date to which the matter is postponed is shown, 
or the statement ``postponed until this notice is canceled'', is shown.
    (2) Suspended matter postponed to a specific date may be further 
postponed if done prior to the end of the previous postponement period, 
and the previous notice is canceled.
    (3) The postponement notice may be canceled at any time after the 
end of the suspension period.
    (k) Changes and cancellation during the suspension period. Suspended 
matter or matter held in force may be changed or canceled during the 
suspension period, as follows:
    (1) Suspended matter may be canceled in whole or in part on 1 day's 
notice if--

[[Page 331]]

    (i) The cancellation is to become effective prior to the end of the 
suspension (or postponement) period, or the effective date of a final 
decision in the proceeding, whichever is earlier; and
    (ii) At the time of filing, all parties of record and the Office of 
Proceedings, Interstate Commerce Commission, Washington, DC 20423, shall 
be notified (with reference to the involved docket number) of the tariff 
publication(s) and its effective date. The notice to the Office of 
Proceedings shall certify that the parties of record have been notified, 
and a copy of that notice (if in writing) shall be sent with the tariff 
publications submitted for official filing.
    (2) When suspended matter is canceled, it may not be republished to 
become effective on less than statutory notice, absent special 
permission.
    (3) The matter held in force shall be republished (without change) 
in the same publication containing, and concurrently with, the 
cancellation of the suspended matter if the matter held in force--
    (i) Is in the same tariff as the suspended matter and was to be 
specifically canceled by it; or
    (ii) Is in a prior issue of the tariff containing the suspended 
matter.
    (4) Cancellation of suspended matter in a bound tariff shall be made 
in a supplement. Cancellation of suspended matter in a looseleaf tariff 
shall be made by looseleaf page amendment, unless the tariff only 
contains the suspended matter, then cancellation shall be made by 
supplement. If a tariff contains only the suspended matter (or if the 
suspended matter is a conversion supplement), the cancellation may be 
made by publishing a notice of cancellation in the supplement, and 
either bringing forward the matter held in force, or referring to its 
location.
    (5) Postponement provisions shall be canceled concurrently with, and 
on the same notice as, the cancellation of the suspended matter. The 
postponement provisions shall be canceled in the same supplement as the 
cancellation of the suspended matter, or, if cancellation of the 
suspended matter is by looseleaf page amendment, by the check sheet.
    (l) Commission vacates suspension or finds suspended matter 
justified. (1) If the Commission vacates a suspension or finds the 
matter justified, the suspended matter may be made effective on 1 day's 
notice, but not earlier than the effective date of the Commission's 
decision.
    (2) Suspended matter in a bound tariff, or nonreissued suspended 
matter in a looseleaf tariff, may only be made effective by publishing a 
notice in a supplement to the tariff. Reissued suspended matter in a 
looseleaf tariff may only be made effective by publishing a notice on a 
reissue of the involved page(s). The notice shall identify the suspended 
matter, state the effective date, and cancel any postponement notice. If 
the suspended matter was to specifically cancel the matter held in force 
in the same tariff, or the matter held in force was to have expired, the 
matter held in force shall be specifically canceled with the same 
effective date and on the same notice.
    (3) If a new tariff had provided for cancellation of another tariff, 
but that cancellation was nullified because of the suspension, the other 
tariff shall be canceled by a statement in a supplement to the new 
tariff. Otherwise, if a tariff contains only matter held in force by the 
suspension and the matter is required to be canceled, the cancellation 
of the tariff shall be made by supplement to that tariff.
    (4) Changes or additions to a tariff containing matter held in force 
because of the entire suspension of another tariff may be brought 
forward without change into the other tariff. The publication shall be 
by supplement to a bound tariff and by looseleaf page amendment to a 
looseleaf tariff. If this is done, the tariff containing the matter held 
in force shall be concurrently canceled by supplement.
    (m) Suspended matter ordered canceled. If suspended matter is 
ordered canceled, the cancellation may be made on 1 day's notice, unless 
otherwise ordered.
    (n) Tariff amendments required or permitted to be filed and matter 
held in force under the authority of this section are, for the life of 
the tariff, exempt from the provisions of this part pertaining to the 
volume of effective

[[Page 332]]

supplements or looseleaf page amendments.
    (o) Reference to Commission suspension decisions. Publications 
issued under authority of this section shall refer to this section and 
to the investigation and suspension docket number.
    (p) Court orders. Restraining orders, injunctions, enjoinders, or 
other court orders having the effect of suspending the operation of 
tariff provisions shall, to the extent possible, be reflected in tariffs 
in the same manner as suspension decisions.



Sec. 1312.22  Rates or other provisions prescribed by the Commission.

    If the Commission requires publication of certain rates or 
provisions, a carrier or agent shall--
    (a) Publish the rate or provisions on statutory notice, unless 
otherwise specifically authorized, with reference in the tariff 
publication to the decision in the manner required by this part;
    (b) Notify the Commission when the decision has been complied with, 
referring to the docket number of the decision (the volume and page 
number of any printed Commission reports shall also be shown); and
    (c) Identify, in the notice of compliance, the item, page, 
supplement and tariff where the complying provisions are published.



Sec. 1312.23  Expiration dates.

    (a) How and where expiration dates are to be shown. (1) An original 
tariff or a supplement may be shown to expire by placing the following 
on the title page: ``This tariff [supplement] expires with [here show 
date] unless sooner canceled, changed, or extended.''
    (2) An expiration date of an original tariff or a prior supplement 
may be added or changed in a supplement by providing an explanatory 
statement on the title page. If the supplement is reissued, the amended 
or added expiration date statement shall be reissued in the regular 
manner.
    (3) An item or other part of a tariff may be shown to expire by 
publishing the following statement within the item: ``Expires [here show 
date].''
    (4) Matter may also be shown to expire by referencing it with a 
reference mark which shall be explained as ``Subject to the expiration 
date shown in item [here show expiration date item number].'' The 
expiration date item, reserved for this purpose only, shall identify the 
matter referred to and show the expiration dates.
    (b) Extension of expiration dates. An expiration date may be 
canceled or extended to a later date. However, the extension may not be 
made effective after the expiration date. Also see Sec. 1312.39.



Sec. 1312.24  Tariffs listing carriers' operating authority applicable to motor carriers of property.

    (a) A separate tariff containing a description of carriers' 
operating authorities (a ``scope'' tariff) may be filed. A ``scope 
tariff shall contain a statement explaining that the application of 
rates and provisions in tariffs governed by it is limited to the extent 
of the carrier's operating authority published in the ``scope'' tariff.
    (b) A description of the carrier's operating authority may not be 
used as a substitute for describing commodities or territories for rate 
application.
    (c) If rate tariffs are governed by more than one scope tariff, each 
scope tariff shall be referred to in the rate tariff as a governing 
publication.
    (d) A scope tariff may be combined with a participating carrier 
tariff, a rate basis tariff, and/or a rules tariff.



Sec. 1312.25  Participating carrier tariffs.

    (a) Separate tariffs may be filed by agents. (1) An alphabetical 
list of carriers participating in agent's tariffs, along with a 
description of the underlying tariffs, may be filed in a separate tariff 
(not a rate tariff). The title page of the participating carrier tariff 
shall state that it applies only in connection with tariffs referring to 
it. If the tariff governs tariffs issued jointly by two or more agents, 
it shall be a joint issue (see Sec. 1312.11).
    (2) Except for statements explaining the extent of carriers' 
participation in governed tariffs (for example, only for local hauls or 
only for joint hauls) the tariff may not contain provisions governing 
rate application.
    (b) List of carriers. (1) The list of participating carriers shall 
be constructed in the manner required by this part.

[[Page 333]]

Carriers' code designations may be shown directly with the carriers' 
names.
    (2) All governed tariffs in which a carrier participates shall be 
referred to by ICC designation directly with the carrier's name. The 
participation of all carriers in the participating carrier tariff may be 
provided by a statement, rather than listing the tariff designation 
directly with the carriers' name.
    (c) List of tariffs. An agent's participating carrier tariff shall 
contain a current and correct list of its tariffs, including those which 
contain their own list of participating carriers or which are issued 
jointly with another agent(s). If the participating carrier tariff is a 
joint issue, only the tariffs of the principal agent need be listed. The 
tariffs shall be listed in numerical order by ICC designation, with a 
separate section for each agent if joint issues are involved. Each 
tariff listed shall be described so that its general application may be 
determined without examining the tariff itself.
    (d) Cancellation of participating carriers. (1) Except as provided 
in paragraph (f) of this section, when a carrier's participation in a 
participating carrier tariff or governed tariff is canceled, all 
reference to the carrier in the involved tariff(s) shall be canceled.
    (2) The cancellation may be accomplished either by--
    (i) Amending all matter to eliminate reference to the carrier; or
    (ii) Publishing a blanket cancellation notice.
    The blanket cancellation shall be published in the participating 
carrier tariff and shall be referred to in the cancellation of the 
carrier's name. A provision referring to the canceled carrier may not be 
republished without concurrent cancellation of the reference to that 
carrier and all matter shall be amended as soon as possible.
    (3)(i) In a bound tariff the canceled carrier's name (and reference 
to the blanket cancellation notice, if used) shall be carried forward as 
reissued matter in the list of participating carriers.
    (ii) In a looseleaf tariff, the carrier's name (and reference to the 
blanket cancellation notice, if used) and the date the cancellation 
became effective shall be republished in successive issues of the list 
of participating carriers until all provisions referring to the carrier 
are amended.
    (e) Reinstatement of participating carriers. If a carrier's 
participation is canceled, and reinstated at a later date, the tariff 
shall so explain. This explanation shall be referred to directly with 
the reinstated carrier's name until the participating carrier tariff is 
reissued.
    (f) Adoptions. (1) If a carrier adopts another carrier, wholly or 
partially, the adoption shall be announced and explained in the 
participating carrier tariff. This announcement shall be continued in 
the tariff and reissues until a carrier adopted wholly is no longer 
referred to in any provision of the governed tariffs, and until a 
carrier adopted partially is no longer referred to in those provisions 
in the governed tariff affected by the partial adoption.
    (2) The name of a wholly adopted carrier shall be canceled from the 
list of participating carriers. The name of a partially adopted carrier 
may not be canceled from the list of participating carriers unless its 
remaining rates and provisions are not published in the agent's 
tariff(s). Reference to the adoption and the cancellation shall be 
continued until the participating carrier tariff is reissued.
    (g) Participating carrier tariff may include other provisions. 
Provisions authorized to be published in a routing guide, points of 
service, and/or a ``scope'' tariff, may be published in a participating 
carrier tariff provided application of each category is clear.



Sec. 1312.26  Rate basis tariffs.

    (a) Separate tariffs may be filed. Rate groups or rate bases for 
determination of rates between points named in the rate tariff may be 
filed in a separate tariff. The tariff may contain routing and operating 
authority provisions, waybilling instructions and divisions. No tariff 
may be governed by more than two rate group or rate basis tariffs, one 
for origin points and one for destination points.
    (b) Points and rate group or basis to be listed. Railroad basing 
tariffs may list the location of each station or refer by ICC 
designation to a station list tariff.

[[Page 334]]

Directly with each point listed shall be published either its assigned 
rate group or reference to an item providing that information. 
Exceptions to the rate group may be published.
    (c) Arbitraries or differentials. Amounts to be added to 
(arbitraries) or subtracted from (differentials) base rates may be 
published either directly with each point or in an item referred to 
directly with each point. Provisions governing arbitraries or 
differentials which differ from those governing the base rates shall be 
referred to directly with the arbitraries or differentials (see 
Sec. 1312.14).



Sec. 1312.27  Classification, exceptions, rules, dangerous articles and station list tariffs.

    (a) Classification. (1) A classification of commodities may be 
published as a separate tariff. The classification shall list the 
various commodities and assigned class of each. Whatever organization is 
used within the tariff shall be clear.
    (2) Rules having general application may be published in a 
classification. The rules shall precede the itemized list of articles.
    (3) The classification shall, if applicable, include a statement 
that exception exist and take precedence.
    (b) Exceptions tariffs. (1) Exceptions to the classification 
provisions may be published in a separate tariff.
    (2) Exceptions tariffs shall be published as required by the rules 
governing tariff content generally. The title page shall contain the 
following statement:

    This tariff applies only in connection with tariffs referring to it 
by ICC designation.

    (c) Rules tariffs. Governing provisions may be published in a 
separate tariff or tariffs provided the application and any exceptions 
are clearly explained.
    (d) Dangerous articles tariffs. The Department of Transportation's 
regulations governing the acceptance and transportation of dangerous 
articles and hazardous materials may be reproduced and filed in a 
separate tariff.
    (e) Participation in governing publications. Carriers participating 
in tariffs which refer to, and are governed by, separate tariffs 
(classifications, exceptions, rules etc.), shall also participate in 
those governing separate tariffs, unless specifically stated in the 
governed tariffs that provisions in the separate tariffs will not apply 
for their account. This does not require participation in local drayage 
tariffs or in terminal and special services tariffs applicable only for 
the issuing carrier. Carriers participating in a rate tariff solely to 
provide substituted service at another carrier's option need not 
participate in the governing tariffs. See Sec. 1312.38.
    (f) List of stations showing facilities, additions and abandonments. 
(1) A tariff publication may be filed containing a list of stations with 
the railroad location of each, alphabetically and geographically 
arranged with index numbers, prepay requirements, station facilities, 
additions of stations, abandonments of stations, changes in names of 
stations, and restrictions as to acceptance and delivery of freight. No 
rates or charges and no matter that will in any way increase or decrease 
the rate or charge in tariffs making reference to this publication may 
be shown. Changes in the tariff may be made on not less than 1 day's 
notice, except that announcement of the restrictions as to the 
acceptance or delivery of freight shall be made effective on not less 
than statutory notice.
    (2) Changes made on less than statutory notice under the authority 
of this paragraph shall state that they are so made.
    (3) Rate tariffs that are to be governed by the separate tariff 
publication shall so state, and their application clearly explained.
    (4) When a station has been abandoned as of a date specified in the 
tariff authorized by this section, the rates from or to the station are 
inapplicable and shall be eliminated in the next amendment of the rate 
tariffs. When the elimination is made by supplement, the following 
notation shall be used:

    Eliminate -------- station abandoned. For effective date see [the 
governing tariff issued under this rule].

This notation must be continued in connection with the name of the 
station as long as the tariff remains effective, and indicated as a 
reissue from the supplement in which it was first

[[Page 335]]

published, but without stating the effective date of the supplement.



Sec. 1312.28  Accessorial, terminal and other services.

    (a) General rules. Carriers or their agents shall publish and file 
with the Commission all rules and charges governing accessorial 
services, terminal services, allowances, absorptions, and other 
practices or privileges. The rules shall be published in clear terms, 
and the rate, if any, shall be stated separately. The amount of the 
charges shall be included or be readily ascertainable if the carrier is 
acting as collection agent for a third party or is advancing payment, 
e.g., as for tolls, ferry charges, and special permits.
    (b) Method of publication. (1) Rules and charges referred to in 
paragraph (a) of this section may be published either in--
    (i) The line-haul rate tariff;
    (ii) Separate tariffs which are referred to in the rate tariff by 
specific ICC designation; or
    (iii) Separate tariffs combined with a clause in the rate tariff 
which identifies the services offered in connection with the rate and 
indicates that other tariffs of the carrier contain the application 
charges.
    (2) A rate tariff issued in a carrier's name may refer to their 
agent's terminal services tariffs as well as its own, provided 
application of the various tariffs is clear.
    (c) Pickup and delivery service. (1) All carriers of property shall, 
as appropriate, specify whether rates include pickup and delivery and, 
if so, the relevant geographic area, and governing conditions.
    (2) If pickup and delivery service is performed beyond the limits of 
the point at which the rate applies, the larger area shall be described 
in the rate tariff.
    (d) Switching charges. (This paragraph applies only for railroads.) 
(1) Carriers performing switching service on interstate shipments shall 
file a tariff or tariffs containing their charges for that service. The 
switching tariff shall name the stations, warehouses, teams or 
industrial tracks, or other points at which shipments will be received 
or delivered within the switching limits, or shall otherwise clearly 
define the switching limits. Charges may be published in more than one 
tariff, provided application of each is clear. The tariff shall explain 
the amount to be paid by the shipper and the amount to be absorbed, as 
applicable.
    (2) Absorption provisions shall be published in a rate, switching or 
absorption tariff of the line haul carrier and all provisions on the 
same tariff shall be published only in one tariff, except as provided in 
paragraph (d)(4) of this section.
    (3) The carrier whose charges are absorbed and the amount absorbed 
shall be stated. If charges are partially absorbed, the rate tariff 
shall state that the unabsorbed charges will be in addition to the line 
haul charges.
    (4) If absorption provisions are published in a switching or 
absorption tariff, exceptions to those provisions may be published in 
rate tariff. If published, the exception and the general absorption 
provision shall each state that the provisions in the rate tariff are 
exceptions to, and apply in place of the general absorption provisions. 
The exceptions provisions need not name the carrier whose charges are 
absorbed.

[49 FR 38615, Oct. 1, 1984, as amended at 50 FR 4863, Feb. 4, 1985; 50 
FR 37534, Sept. 16, 1985]



Sec. 1312.29  Rates and liability based on value provisions.

    Released rate provisions established in accordance with 49 U.S.C. 
10730 shall be published in the same tariff as the matter they govern. 
The tariff shall, to the extent required by statute refer specifically 
to an action of the Commission.



Sec. 1312.30  Distance rates.

    (a) Distance rates may be filed. Distance or mileage (hereafter 
referred to as distance) class or commodity rates may be filed.
    (b) Method of showing distances. Distance rates may be published to 
apply per vehicle per mile, or other unit per mile, or by establishing a 
rate table or segment showing a scale of distances for which charges 
will be applied. If the latter method is used, a rate shall be provided 
for each distance. Each State or area covered by the application of the 
rates shall be listed. The listing

[[Page 336]]

may be brief but informative as to the territorial coverage.
    (c) Determination of distances. (1) A tariff containing distance 
rates shall contain provisions for the determination of distances by--
    (i) Publishing the distances between all locations covered by the 
distance rates in the tariff;
    (ii) Referring to a map(s) attached to the tariff; or
    (iii) Referring to a distance guide(s).
    (2) If maps are referred to, the rate tariff shall include a rule 
specifying the manner in which distances are obtained from maps. The 
rule shall include a definite means for determining distances between 
all locations within the territorial coverage of the rates, regardless 
of whether or not all the locations are shown on the map and regardless 
of whether or not actual distances are shown between all locations.
    (3) When a map to a tariff is superseded by another, the new map 
shall be attached to and made a part of a supplement to a bound tariff, 
or a looseleaf page to a looseleaf tariff, which shall specifically 
cancel the old map and give effect to the new.
    (4) Except as provided in Sec. 1312.13(e)(2), only distance guides 
officially on file with the Commission may be referred to. More than one 
may be referred to provided the rate tariff clearly specifies the 
circumstances under which each guide will apply. An agent's tariff may 
refer to another agent's distance guide.
    (5) Distance guides shall provide distance tables or combinations of 
tables and maps. Tables shall provide specific distances between a 
substantial number of the points and be shown as having precedence over 
the distances determined by the use of maps. Each guide shall provide 
rules stating its application. The rules shall include a means for 
determining distances between all locations with the territorial 
coverage of the guide, regardless of whether all the locations are shown 
in the guide or whether distances are shown between all locations. If 
distances between certain points or areas are to be determined only 
through a certain gateway or interchange point, those points or areas 
and the gateway or interchange point shall be identified. Distance 
guides filed in ``paper'' format may exceed the maximum size limitations 
imposed by Sec. 1312.3 but may not exceed 14 \1/2\ by 17\1/2\ inches in 
size. Carriers may file automated distance determination systems which 
are linked by reference in abbreviated distance guides or rate tariffs 
to computer stored information provided the following conditions are 
met:
    (i) Carriers or their tariff publishing agents shall make 
arrangements with the Commission for the receipt, storage and use of the 
systems through existing Commission techology and facilities.
    (ii) In the event that a system is not compatible with Commission 
technology, the necessary implementing equipment and programs shall be 
placed on file with the Commission for use by Commission personnel and 
the public at no cost.
    (iii) Proposed changes in the systems shall be given notice and 
reflect the nature of the change, as required by 49 U.S.C. 10762(c)(3) 
and Sec. 1312.4(e) and Sec. 1312.17(f). However, if an electronic 
distance determination system is not inherently capable of giving notice 
and symbolization of changes within the program, then printed tariff 
amendments to the distance guides or rate tariffs will be required. The 
amendments shall show the currently effective provisions as well as the 
proposed changes thereto.
    (iv) The distance guides or rate tariffs shall provide all the 
information necessary to access and utilize the systems.
    (6) Railroad distance rate tariffs or distance guides shall also 
provide:
    (i) A list of the points between which the rates apply;
    (ii) The shortest distances between those points;
    (iii) An indication of which of those points are junction points 
where traffic may be interchanged without transfer of the lading; and
    (iv) The names of the connecting carriers at each of those 
junctions.
    (7) A rail carrier or its agent may file a separate tariff 
containing the information required by paragraph (c)(6) of this section 
to govern local rates. The distances shall be shown--
    (i) Form each point to each point;

[[Page 337]]

    (ii) Form each point to each junction point; or
    (iii) Form each junction point to each other junction point and from 
each point to the nearest junction point in each direction.
    (8) An agent may file a separate tariff to govern joint rail rates. 
The distances shall be shown from each junction point to each other 
junction point and from each point to the nearest junction point in each 
direction. The latter distances need not be shown if the rate tariff 
refers to local distance tariffs of each carrier which contain the 
distances.

[49 FR 38615, Oct. 1, 1984, as amended at 53 FR 5983, Feb. 29, 1988]



Sec. 1312.31  Commodity rates determined by the use of rate base numbers.

    This rule applies only for common carriers of property. ``Column 
commodity rates'' or ``commodity rate column'' shall be the terms used 
in captions for, and references to, commodity rates determined by use of 
rate base numbers or other basing systems. The basing system shall be in 
the same or other tariffs.



Sec. 1312.32  Application of rates from or to intermediate points.

    This section does not apply to household goods freight forwarders, 
pipelines, contract carriers, or on irregular route motor common carrier 
authority.
    (a) Intermediate application of rates. Tariffs may publish 
appropriate rules to provide for the application of rates from or to 
points located between origins and destinations from or to which the 
rates apply.
    (b) Rules must be complete. The rules must be clear and complete. 
The rules shall give consideration to situations where branch or 
diverging routes or points are involved. The rules shall also 
specifically provide for the application or nonapplication of effective 
rates specifically applying from or to the intermediate points.
    (c) Intermediate point rules to be published in connection with 
regular-route authority. A statement shall be published indicating under 
what circumstances, if any, the rules will apply for off-route points, 
and for points located on either side of the highway which may be served 
under the implied authority of the carrier's certificate.

[49 FR 38615, Oct. 1, 1984, as amended at 51 FR 44297, Dec. 9, 1986]



Sec. 1312.33  Class rates from or to unnamed points applicable only to motor carriers of property.

    (a) Class tariffs shall provide class rates for all points within 
the territorial coverage of the tariff which the participating carriers 
are authorized to serve; and which are shown on official State maps or 
equivalent commercial maps.
    (b) If the class-rate intermediate rule is not used or will not 
cover all unnamed points a carrier may serve, a rule describing how to 
compute rates on unnamed points may be published. Application of the 
various rules, if more than one is used, shall be clear.



Sec. 1312.34  Continuous service rates not applicable to passenger carriers.

    (a) Rates may be filed which are published to apply when carrier's 
equipment is used exclusively by and in the continuous service of a 
single shipper during a specified period of time. All necessary 
definitions and conditions shall be provided.
    (b) If other than regulated, interstate traffic is used to meet the 
continuous use requirements, the tariff shall so state and explain all 
requirements.
    (c) Continuous service periods may not begin prior to the effective 
date of the tariff.
    (d) The tariff shall provide for other charges if the continuous 
service conditions are not met. Provisions may be published for the 
execution of an indemnity bond to guarantee payment. If charges are 
required to be collected for a deficit in the minimum charge or for any 
time during the period the equipment is not used, it shall be clear what 
rate is to apply on the deficit or nonuse. Consideration shall also be 
given as to whether the deficit or the nonuse rate will change (e.g., 
through general increase) during the period.
    (e) The tariff shall provide that the carriers will keep complete 
and accurate records of the movements, that the information in these 
records will be available to the shipper and where and when it will be 
available.

[[Page 338]]

    (f) The tariff shall state whether and how the rates or conditions 
will be revised and the procedure to use due to disabilities such as 
strikes, breakdown of equipment, fire, etc., identifying the 
disabilities and indicating the rate or condition revisions.
    (g) Provisions may be published permitting discontinuance during the 
period for specified reasons. The provisions shall clearly state any 
penalty charge and the amount to be assessed for the discontinuance 
privilege.
    (h) Retroactive application of tariff amendments is not permitted.

[49 FR 38615, Oct. 1, 1984; 49 FR 40415, Oct. 16, 1984]



Sec. 1312.35  Time-volume rates not applicable to passenger carriers.

    (a) Rates may be filed which are published to apply only when a 
specific quantity of freight is shipped by a consignor or received by a 
consignee during a specified period of time. All necessary definitions 
and conditions shall be provided.
    (b) If other than regulated interstate traffic is used to meet the 
time-volume service requirements, the tariff shall so state and explain 
all requirements.
    (c) Time/volume periods may not begin prior to the effective date of 
the tariff.
    (d) The tariff shall provide for other charges if the time/volume 
conditions are not met. Provisions may be published for the execution of 
an indemnity bond to guarantee payment. If the tariff provides for the 
collection of charges on a deficit, consideration shall also be given as 
to whether the deficit rate will change (e.g., through general increase) 
during the period. If charges are required to be collected for any 
deficit in weight between the actual weight of a particular shipment and 
the minimum weight on which charges for that shipment are assessed as 
the volume shipments move, the tariff shall so provide.
    (e) The tariff shall provide that the carrier(s) will keep complete 
and accurate records of the movements, that the information will be 
available to the shipper and where and when it will be available.
    (f) The tariff shall state whether and how the minimum quantity 
requirements will be reduced and the procedure to use due to 
disabilities such as strikes, breakdown of equipment, fire, etc., 
identifying the disabilities and indicating the rate or condition 
revisions.
    (g) Provision may be published permitting discontinuance for 
specified reasons. The provisions shall clearly state any penalty charge 
and the amount to be assessed for the discontinuance privilege.
    (h) Retroactive application of tariff amendments is not permitted.

[49 FR 38615, Oct. 1, 1984; 49 FR 40415, Oct. 16, 1984]



Sec. 1312.36  Seasonal water rates.

    (a) Discontinuance and restoration of service. If tariffs contain 
rates applicable to water routes which are seasonally closed to 
navigation, they shall contain provisions governing the discontinuance 
and restoration of service.
    (b) Title page notation. The title page of the tariff shall briefly 
state the service limitations and refer, if necessary, to specific 
provisions.
    (c) Supplements announcing discontinuance of service. Only one 
supplement announcing discontinuance of transportation service may be 
effective at one time. The supplement may be filed to a bound or 
looseleaf tariff without regard to the supplement limits of this part, 
and may be filed on 1 day's notice.
    (d) Reissues. If a tariff discontinuing service as of a specific 
date becomes effective after the actual date service was discontinued, 
the tariff shall so state, refer to the prior supplement and ICC tariff 
designation, and state that a further supplement announcing 
discontinuance of service for that season will not be filed.



Sec. 1312.37  Export and import traffic and joint rates with ocean carriers.

    (a) Definitions. The term domestic carrier as used in this section 
means a common carrier by rail, motor, water, or household goods freight 
forwarder subject to the Act.
    (b) Through routes and joint rates. A domestic carrier may establish 
a through route and joint rate with a non-vessel or vessel operating 
ocean

[[Page 339]]

carrier for the transportation of property between any place in the 
United States and any place in a foreign country. Tariffs for such 
service shall be filed with the Commission is either long form or 
abbreviated form, as follows:
    (1) The long-form tariff shall name the through routes and joint 
rates, and may be filed in the name of the ocean carrier, a conference 
of ocean carriers, the domestic carrier, or the publishing agent of the 
carriers.
    (2) An abbreviated tariff shall refer to a specific tariff(s) on 
file with the Federal Maritime Commission (FMC) containing the joint 
through rates on which the domestic carrier participates, and shall be 
filed in the name of the domestic carrier or the publishing agent of the 
domestic carrier.
    (c) Tariff provisions. (1) Tariffs filed with the Commission under 
the provisions of paragraph (b) of this section shall comply with all of 
the other requirements of this part. Rail carriers are exempt from this 
tariff filing requirement. See 49 CFR 1039.21, International joint 
through rates. The division or rate to be received by the domestic 
carrier for its share of the revenue covering a through shipment or 
aggregate of shipments may, but need not, be shown in the tariff.
    (2) Abbreviated tariffs filed under the provisions of paragraph 
(b)(2) of this section, shall comply with the relevant format 
requirements, including those pertaining to ``participating carrier'' 
publications.
    (3) A tariff filed in the name of a conference need not show 
``Agent'' after the name of the conference unless the conference 
publishes as an agent.
    (4) ``Cargo, N.O.S.'' may be used as a commodity description 
provided the term is clearly defined in the tariff.
    (d) Changes on less than statutory notice. (1) Abbreviated tariffs, 
or amendments thereto, filed under the provisions of paragraph (b)(2) of 
this section, may be filed to become effective on a specified date on 
not less than one-day's notice.
    (2) For tariffs filed under the provisions of paragraph (b)(1) of 
this section, that include the division or rate accruing to the domestic 
carrier, the following changes may be published by amendment to the 
tariff to become effective on a specified date not prior to the date 
filed with the Commission:
    (i) A change in a published rate or other provision which results in 
reduction or in no change in charges, provided that there is no change 
in the separately stated division or rate accruing to the domestic 
carrier or a provision governing or affecting that division or rate. 
This includes a change in a rate that results in lessening or canceling 
a proposed (i.e., published but not yet effective) increase; and
    (ii) The establishment of a rate on a specific commodity not 
previously named in a tariff which results in a reduction or no change 
in charges.
    (3) Changes in charges for terminal services, canal tolls, or other 
additional charges may be made effective upon a specified date not prior 
to the date filed with the Commission, provided the charges are not 
under the control of the carrier or conference, and the agency assessing 
the charges to the carrier increases the charges without notice or 
without adequate notice to the carrier or conference. If the tariff 
separately states the division, rate, or charge accruing to the domestic 
carrier, and if a change occurs in the division, rate, or charge, the 
amendment shall contain a statement explaining the change.
    (e) Port combination bases. Domestic and ocean carriers may enter 
into joint arrangements and domestic carriers may at the same time 
maintain an effective rate applicable only from and to the ports, usable 
in combination with the ocean carriers' independently established rates. 
In the absence of a statement in tariffs limiting the application of 
export or import rates, the rates will apply. The domestic carriers may 
also publish in their tariffs, as information, the ocean carriers' rates 
that will apply to or from a foreign country in connection with the 
domestic carriers' rates. When this is done, the ocean carriers' rates 
are in no manner subject to the jurisdiction of this Commission.
    (f) Through export and import billing. When export and import 
shipments are forwarded under through billing, the through bills of 
lading shall clearly separate the liability of the domestic

[[Page 340]]

carriers and the ocean carriers. The name of the domestic carrier shall 
appear on the face of the bill of lading when that carrier originates 
the shipment. Tariffs which provide for the use of a specified kind of 
bill of lading shall reproduce all of its terms and conditions.

[49 FR 38615, Oct. 1, 1984, as amended at 51 FR 3071, Jan. 23, 1986; 51 
FR 27046, July 29, 1986; 51 FR 44297, Dec. 9, 1986]



Sec. 1312.38  Substitution of service.

    Paragraphs (a), (b), (c), and (d) of this section only apply to 
property carriers. The provisions of this section may not be used in 
connection with joint rates and provisions for which concurrences are in 
effect unless they so provide.
    (a) Substituted service may be provided. (1) If a rail, water, or 
motor carrier (hereafter referred to as Carrier A) desires to have the 
option to substitute the services of a carrier of a different 
transportation mode (hereafter referred to as Carrier B) for part of its 
movement of a shipment, it may do so subject to the requirements of this 
section.
    (2) Either the rate tariff or a governing tariff shall contain the 
substituted service provisions.
    (3) A separate tariff entitled ``Substituted Freight Service 
Directory'' may be filed, governing the rate tariff(s), provided it 
contains only matter relating to the substituted service.
    (b) Service conditions. Substituted service provisions may be 
published if--
    (1) The shipment moves on the bill of lading that would be used if 
Carrier A was performing the service;
    (2) Carrier A assumes the responsibility for the lading while it is 
in the possession of Carrier B; and
    (3) Movement of the lading has been made prior to, or will be made 
subsequent to, the service performed by Carrier B.
    (c) Tariff conditions. The tariff provisions for substituted service 
shall include--
    (1) The name of Carrier B;
    (2) The points between which the substituted service will be 
performed;
    (3) A statement that the rate applicable via Carrier A will apply; 
and
    (4) A statement that the substituted service will not be performed 
if the shipper advises the carrier that it does not want service to be 
substituted. Carrier B does not need to be shown as a participant in 
Carrier A's rate or governing tariffs, nor in the routing provisions.
    (5) When publishing substitution of trailer-on-flatcar service for 
motor service, tariffs need not show the rail carrier's name or points 
of interchange with the rail carriers.
    (d) Changes in tariff provisions. Additions, deletions and other 
changes in substituted service provisions (not rates) may be made on 1 
day's notice.
    (e) Optional honoring of ticket arrangements. (This paragraph only 
applies to passenger carriers.) Provisions may be published affirming an 
agreement of two or more carriers for the acceptance by one carrier of a 
ticket sold over the route of another carrier. The carriers' names shall 
be shown, along with the names of the points between which the tickets 
will be honored, and any restrictions or exceptions stated.



Sec. 1312.39  Miscellaneous provisions which may be filed on less than statutory notice.

    (a) Restorations of carrier participation. Amendments to restore a 
carrier's participation in a tariff may be filed on 5 days' notice 
provided the relisting of the carrier is indicated to become effective 
not later than the date the cancellation was published to become 
effective.
    (b) Amendment of participating carrier list in a classification or 
dangerous articles tariff. Additions, corrections and other changes to 
the list of participating carriers in classifications and dangerous 
articles tariffs may be made on 1 day's notice. This authority may not 
be used to cancel the participation of a carrier.
    (c) Rates for or newly established water carrier service. (1) (This 
paragraph does not apply to the transportation of passengers.) Rates and 
provisions applicable at, from, to or via points on new lines may be 
established on 10 days' notice. If the establishment of local rates 
under this authority results in the establishment of combination through 
rates, the combination through rates

[[Page 341]]

may be displaced by lower rates, either single factor or combination, on 
10 days' notice. If class rates are initially established under this 
authority, lower commodity rates to displace the class rates may later 
be established on 10 days' notice.
    (2) (This paragraph applies only to the transportation of 
passengers.) Rates and provisions applicable at, from or to points on 
new lines may be established in the first instance on 1 day's notice.
    (d) Extension of expiration dates or postponement of effective dates 
of comeback provisions. Amendments to extend the expiration dates of 
provisions, and to postpone the effective date of comeback provisions 
(provisions which are paired with and published to supersede those 
indicated to expire with the preceding day) may be published on 1 day's 
notice provided no change is made in the extended or postponed 
provisions.
    (e) Effective Dates. The effective date of a publication, rate, or 
provision may be postponed on 1 day's notice, and in statement form.
    (f) Roundtrip excursion fares. Fares for a roundtrip excursion 
limited to a designated period may be established upon posting and 
filing the tariff on 1-day's notice.
    (g) Transportation of circus and show outfits. Rates for specified 
movements of circuses and other show outfits may be established by 
filing the tariffs with the Commission on 1 day's notice. The tariffs 
shall publish the charges specifically, or may consist of a proper title 
page, containing the statement ``as per copy of contract attached,'' 
with a copy of the contract attached.
    (h) Freight rate tariffs and classifications of railroads, motor 
common carriers of property and freight forwarders-notice for 
independent rate changes--(1) New and reduced rates. Except as otherwise 
provided in paragraphs (h)(2), (4) and (5) of this section, each 
independently established new or changed rate, charge, rule, or other 
provision shall be filed with the Commission in Washington, DC at least 
1 day before the date upon which it is to become effective.
    (2) Increased rates. Each independently established increased rate 
or charge and each independently established change in a rule or other 
provision which effects a reduction in the value of service or increase 
in a rate or charge shall be filed with the Commission in Washington, DC 
at least 7 workdays before the date upon which it is to become 
effective. This provision does not apply to rail freight rate tariff 
increases. Such filings shall be made on statutory notice, i.e., 20 
days. See Sec. 1312.4(e)(1)(i)(A).
    (3) Independently established for carrier's account. The rate, 
charge, rule, or other provision shall be published either in a tariff 
filed in the carrier's name or under independent action instructions for 
only the particular carrier's account in a tariff filed in a tariff 
publishing agent's name.
    (4) Joint intermodal traffic. This paragraph (h) applies to single-
factor, motor-water property rates, charges, rules and other provisions, 
but does not apply to any other single-factor rate, charge, rule, or 
other provision having application over any segment of the lines of 
another transportation mode.
    (5) This section supersedes others. The provisions of this section 
take precedence over all the provisions of this part 1312 that govern 
filing notice. The other provisions will continue to apply to filings 
that have been docketed with rate bureaus in advance of filing with the 
Commission (collectively agreed upon rate filings).
    (6) Mixed filings. Tariffs or amendments that contain new or reduced 
rates in addition to rate increases shall be filed with the notice 
applicable for rate increases, with the new and reduced rate filings 
appropriately symbolized and excepted from the notice applicable for 
rate increases.
    (i) Tariffs of Motor Carriers of Passengers--Changes--New, Reduced 
and Increased Rates. Except as otherwise provided in paragraph (h)(5) of 
this section, each independently established new or changed rate, 
charge, rule, or other provision must be filed with the Commission in 
Washington, DC, at least 1 day before the date upon which it is to 
become effective. Similarly, each independently established change in a 
rule or other provision that effects a reduction in the value of service 
or increase in a rate or charge must be

[[Page 342]]

filed with the Commission in Washington, DC, at least 1 day before the 
date upon which it is to become effective.

[49 FR 38615, Oct. 1, 1984, as amended at 51 FR 9814, Mar. 21, 1986; 51 
FR 44297, Dec. 9, 1986; 52 FR 537, Jan. 7, 1987; 52 FR 15726, Apr. 30, 
1987; 52 FR 15949, May 1, 1987]



Sec. 1312.40  Claims rules.

    Each carrier or its agent shall file with the Commission its rules 
and practices with respect to--

    (a) The loss or damage to property (see 49 CFR part 1005); and
    (b) Overcharge, duplicate payment or overcollection of freight 
charges (see 49 CFR part 1008).

The rules and regulations may be published in a rate or rules tariff, a 
classification, or in a separate tariff containing no other matter, or 
the tariff may refer to the relevant CFR provisions.



Sec. 1312.41  Range tariffs.

    (a) A range tariff presents a series of rates or discounts with each 
rate or discount potentially applicable to any given shipment; the 
particular rate or discount made applicable to particular shipment(s) is 
given effect by the filing of a second tariff. Under these circumstances 
the rate or discount made applicable by the filing of the second tariff 
takes precedence over other filed tariffs otherwise applicable to the 
shipment(s).
    (b) To initiate range tariff pricing, a carrier or agent shall:
    (1) File with the Commission a tariff setting forth the series 
(range) of rates or discounts potentially applicable to shipments moving 
on, or subsequent to, the effective date of the tariff. The tariff shall 
show on its title page the term INITIATING RANGE TARIFF;
    (2) Provide an explanation of the application of the tariff, 
including any conditions, limitations or restrictions that attend use of 
the tariff; the explanation shall be contained in an Item 150 designated 
``Application of Tariff'';
    (3) File not more than one initiating range tariff to be in effect 
at any one time; however, different ranges of rates or discounts may be 
established within the one tariff provided the application of the 
different ranges is clearly explained to avoid ambiguity of 
applicability;
    (4) File initiating range tariffs with the Commission in the manner 
required by Sec. 1312.3 and Sec. 1312.4(a) and (b) of this part; and
    (5) Establish and maintain with the Commission a tariff filing fee 
account pursuant to the provisions of Sec. 1002.2(a)(1)(ii) of this 
chapter, for use in making activating range tariff filings under 
paragraph (c) of this section.
    (c) To activate for particular shipment(s) a particular rate or 
discount (from among the range of rates or discounts provided in the 
initiating range tariff established under paragraph (b) of this 
section), a carrier or agent shall:
    (1) Prior to transporting a specifically identified shipment(s), 
file a tariff with the Commission stating the actual rate or discount 
that applies to the shipment(s). The tariff shall show on its title page 
the term ACTIVATING RANGE TARIFF and shall refer to the initiating range 
tariff (previously established under paragraph (b) of this section) as a 
control tariff;
    (2) Publish activating rates or discounts in a tariff in the 
carrier's own name or in a tariff filed in the name of a duly authorized 
agent, immediately followed by the carrier's or agent's code and the 
characters ``6R''; immediately under this designation shall be shown the 
actual date of filing with the Commission, which shall serve as the date 
on which the tariff becomes applicable for traffic moving subsequent to 
the filing.

Example: ICC ABCD 6R
Filed: 7/1/93

Each page of the activating range tariff shall show this same 
information. Each page shall be sequentially numbered with the final 
page stating ``end'' following the last page number;
    (3) Show on the title page of each activating range tariff a 
specific date of expiration that shall not exceed 7 days from the date 
of the tariff's filing. In the event an expiration date is not 
designated, the tariff shall expire 7 days from the date of filing;
    (4) Identify the specific traffic to be accorded service under the 
stated rate

[[Page 343]]

or discount with whatever information is needed to identify specifically 
the intended shipments, but in any event, at a minimum, identify either 
the shipper's name or the commodity description and origin and 
destination points; and
    (5) File with the Commission:
    (i) One copy of each activating tariff submitted by fax transmission 
to (202) 927-5888; to avoid the necessity of filing a separate 
transmittal letter (see Sec. 1312.4(b) of this part), the title page of 
every activating range tariff shall provide the name, title and phone 
number of the party authorized to submit the publication for filing with 
the Commission, and the fee account number established for the filing 
carrier or agent; or
    (ii) Two copies of each activating tariff transmitted by hand in 
accordance with the requirements of Sec. 1312.3 and 1312.4(a) and (b) of 
this part.
    (d) Except as expressly provided in this section, range tariffs are 
subject to the provisions of Sec. Sec. 1312.1 through 1312.40 of this 
part.

[59 FR 4844, Feb. 2, 1994]



PART 1313--RAILROAD CONTRACTS ENTERED INTO PURSUANT TO 49 U.S.C. 10713--Table of Contents




Sec.
1313.1  Definitions of the terms contract and amendment.
1313.2  Jurisdiction; contract approval/disapproval.
1313.3  Contract implementation date.
1313.4  Common carrier responsibility; limitations on future contracts.
1313.5  Remedies for breach of approved contracts.
1313.6  Limitation on equipment; and relief.
1313.7  Contract filing, title pages, and numbering.
1313.8  Contract and contract summary availability.
1313.9  Formats for initial and amended contract summaries.
1313.10  Contract summary content--agricultural commodities.
1313.11  Contract summary content--forest products and paper.
1313.12  Contract summary content--port traffic (other than agricultural 
          commodities, forest products, and paper).
1313.13  Contract summary content--other commodities or services not 
          involving a port.
1313.14  Informal discovery.
1313.15  Contract discovery.
1313.16  Procedures for contract discovery and complaints.
1313.17  Grounds for contract review and complaints.

    Authority: 49 U.S.C. 10321 and 10713; 5 U.S.C. 553.

    Source: 53 FR 5380, Feb. 24, 1988, unless otherwise noted.



Sec. 1313.1  Definitions of the terms contract and amendment.

    (a) A contract made pursuant to 49 U.S.C. 10713 is a written 
agreement, including any amendment, entered into by one or more rail 
carriers with one or more purchasers of rail service, to provide 
specified services under specified rates, charges and conditions.
    (b) A contract filed under these rules must:
    (1) Specify that the contract is made pursuant to 49 U.S.C. 10713, 
and
    (2) Be signed by duly authorized parties.
    (c) The term amendment includes written contract modifications 
signed by the parties.
    (d) An amendment is treated as a new contract. [To the extent 
contract extensions or amendments change any term of the contract, 
remedies are revived and review is again available.] An amendment is 
lawful only if it is filed and approved in the same manner as the 
original contract and is consistent with these rules, including the 
filing of a complete contract summary.



Sec. 1313.2  Jurisdiction; contract approval/disapproval.

    (a) Jurisdiction. (1) The contract or amendment and transportation 
are subject to Commission jurisdiction until Commission approval under 
49 U.S.C. 10713 and applicable regulations.
    (2) Railroad transportation contracts (other than agricultural 
commodity contracts) made by the United States Department of Defense are 
exempt from the requirements of 49 U.S.C. 10713.
    (b) Contract approval date. Except as provided in Sec. 1313.7(a)(2):
    (1) The contract is approved on the 30th day after the filing of the 
contract summary if the Commission does not institute a proceeding to 
review the contract.

[[Page 344]]

    (2) If the Commission institutes a proceeding to review a contract, 
it has jurisdiction for 60 days after the contract summary is filed. 
Under these circumstances the contract will be approved:
    (i) On the date the Commission approves the contract, if the date of 
approval is 31 or more days after the filing date of the contract 
summary;
    (ii) On the 31st day after the contract summary filing date if the 
Commission denies the complaint against the contract by the 30th day 
after the contract summary filing date; or
    (iii) On the 60th day after the contract summary filing date, if the 
Commission fails to disapprove the contract.
    (c) Contract disapproval. If the Commission finds that the contract 
violates the provisions of 49 U.S.C. 10713, it will:
    (1) Disapprove the contract; or
    (2) In the case of agricultural contracts (including forest products 
and paper) where the Commission finds unreasonable discrimination by a 
carrier in accordance with 49 U.S.C. 10713 and Sec. 1313.17(b)(3), allow 
the carriers the option to:
    (i) Provide rates and services substantially similar to the contract 
at issue, with such differences in terms and conditions as are justified 
by the evidence; or
    (ii) Cancel the contract.
    (d) Applicable rates/charges if contract disapproved. If the 
Commission disapproves or rejects the contract or amendment, the 
appropriate non-contract tariffs or the contract provisions otherwise in 
effect under previously approved contracts will be applicable.

[53 FR 5380, Feb. 24, 1988, as amended at 57 FR 40621, Sept. 4, 1992]



Sec. 1313.3  Contract implementation date.

    (a) Transportation or service performed under a contract or 
amendment may begin, without specific Commission authorization, on or 
after the date the contract summary (or amended contract summary) is 
filed and before Commission approval as defined in 49 CFR 1313.2, 
subject to the following conditions:
    (1) The contract or contract amendment shall specifically state that 
the transportation or service may begin on the date of filing.
    (2) The contract summary shall separately reflect the date of 
commencement of service.
    (b) Except as provided under paragraph (c) of this section, 
transportation or service may not begin under a contract or an amendment 
to a contract before the filing date of either the contract summary or 
the amended contract summary, respectively.
    (c) Railroad transportation or service is exempt from the 
requirements of 49 U.S.C. 10761, 11902, 11903, and 11904 to the extent 
that a railroad may apply a contract or amended contract rate rather 
than an otherwise applicable tariff or prior contract rate and pay 
reparations or waive undercharges under the following conditions:
    (1) A transportation contract summary or amended contract summary 
under 49 U.S.C. 10713 has been filed with the Commission and has been 
approved by the Commission or by operation of law.
    (2) The shipment at issue falls within the terms of the contract or 
amendment; and
    (3) The shipment was transported before the contract or amendment 
was approved but:
    (i) After the contract or amendment was signed; or
    (ii) After the parties agreed on the rate to be charged and they 
either agreed to be bound by the contract or amendment or intended the 
movement to be covered by the contract and amendments.
    (d) Except as provided elsewhere in this section, all transportation 
under the contract may begin only in accordance with 49 CFR 1313.2.

[53 FR 5380, Feb. 24, 1988, as amended at 57 FR 40621, Sept. 4, 1992; 57 
FR 43291, Sept. 18, 1992]



Sec. 1313.4  Common carrier responsibility; limitations on future contracts.

    (a) The terms of a contract approved by the Commission determine 
completely the obligations of the parties to the contract with respect 
to the services provided under the contract. The contract does not 
affect the parties' responsibilities for any services which are not 
included in the contract.

[[Page 345]]

    (b) Service under a contract approved by the Commission is deemed a 
separate and distinct class of service and the equipment used to fulfill 
the contract shall not be subject to car service limitations under 49 
U.S.C. 11123.
    (c) Limitation of rail carrier rights to enter future contract. The 
Commission may limit the right of a rail carrier to enter into future 
contracts if the Commission determines that additional contracts would 
impair the ability of the rail carrier to fulfill its common carrier 
obligations under 49 U.S.C. 11101. The Commission will handle these 
determinations on a case-by-case basis and may investigate, either on 
its own initiative or upon the filing of a verified complaint by a 
shipper which demonstrates that it individually had been or will be 
harmed by a carrier's inability to fulfill its common carrier 
obligations as a result of existing contracts.



Sec. 1313.5  Remedies for breach of approved contracts.

    (a) The exclusive remedy for an alleged breach of a contract 
approved by the Commission shall be an action in the appropriate State 
Court or United States District Court, unless the parties otherwise 
agree in the contract.
    (b) The Commission may not require a rail carrier to violate the 
terms of a contract that has been approved under 49 CFR 1313.2, except 
to the extent necessary to comply with 49 U.S.C. 11128.



Sec. 1313.6  Limitation on equipment; and relief.

    (a) A rail carrier may enter into contract for the transportation of 
agricultural commodities (including forest products but not including 
wood pulp, wood chips, pulpwood, or paper) that involve the use of 
carrier owned or leased equipment not in excess of 40 percent of the 
total number of the carrier's owned or leased equipment, by major car 
type, except as provided in paragraph (b) of this section.
    (b) In the case of a proposed contract between a class I carrier and 
a shipper originating an average of 1,000 cars or more per year during 
the prior 3-year period by major car type on a particular carrier, not 
more than 40 percent of carrier owned or leased equipment used on the 
average during the prior 3-year period may be used for the contract 
without prior Commission authorization.
    (c) If the rail equipment standards of 49 U.S.C. 10713(k) are 
exceeded, prior relief must be obtained from the Commission and must be 
specifically identified in the contract summary.
    (d) The Commission may grant relief from the limitations of 
paragraphs (a) and (b) of this section if:
    (1) A rail carrier or other party requests such relief; or the 
Commission on its own initiative considers granting such relief; and
    (2) The Commission determines that making additional equipment 
available does not impair the rail carrier's ability to meet its common 
carrier obligations under 49 U.S.C. 11101.



Sec. 1313.7  Contract filing, title pages, and numbering.

    (a) Filing of Rail Contracts. (1) Rail carriers providing 
transportation subject to Subchapter I of Chapter 105 of Title 49, 
United States Code, must file with the Commission an original contract 
(or amendment) entered into with one or more purchasers of rail service. 
The contract (or amendment) must be accompanied by three copies of a 
contract summary (or amended contract summary) of the non-confidential 
elements of the contract as specified in Sec. Sec. 1313.10, 1313.11, 
1313.12, or 1313.13. The contract (or amendment) must also be 
accompanied by the appropriate filing fee (see 49 CFR part 1002).
    (2) A contract (or amendment) and contract summary (or amended 
contract summary) may be rejected for noncompliance with applicable 
statutes and regulations.
    (3) Contracts and contract summaries must not be filed in the same 
package with standard tariff filings.
    (4) The confidential contract shall not be attached to the contract 
summary.
    (5) The outside envelope or wrapper containing the contract/contract 
amendment and summary must be prominently marked ``Confidential, Rail 
Contract'' and addressed to: Interstate Commerce Commission, Section of 
Tariffs, Washington, DC 20423.

[[Page 346]]

    (6) A contract and summary must be accompanied by a transmittal 
letter identifying the submitted documents, and the name and telephone 
number of a contact person. Each transmittal letter shall clearly 
indicate in the upper left-hand corner thereof:
    (i) The assigned alpha code of the issuing carrier;
    (ii) The number of series transmitted;
    (iii) The filing fee enclosed, the account number to be billed, or 
the credit card to be charged; and
    (iv) The transmittal number if the filer utilizes transmittal 
numbers.
    If the filing fee is charged to a credit card, the information must 
include the credit card number and expiration date, and an authorized 
signature.
    (b) Contract and contract summary title pages. (1) The title page of 
every contract and amendment must contain only the following 
information:
    (i) In the upper right corner, the contract number (see paragraph 
(c) of this section).
    (ii) In the center of the page, the issuing carrier's name, followed 
by the word ``CONTRACT'' in large print.
    (iii) Amendments to the contract must also show in the upper right 
corner, the amendment number (see paragraph (c) of this section).
    (iv) A solid one inch black border, or a similar border consisting 
of continuous repetitions of a single alphabetic or special character, 
down the right side of the title page.
    (v) Date of issue and date to be effective.
    (2) The title page of every contract summary and amended contract 
summary must contain only the following information:
    (i)(A) If contract summary, in the upper right corner, the contract 
summary number (see paragraph (c) of this section).
    (B) If amended contract summary, in the upper right corner, the 
contract summary number, followed by the corresponding contract 
amendment number.
    (ii)(A) In the center of the page, the issuing carrier's name, 
followed by the words ``CONTRACT SUMMARY'' in large print.
    (B) If a contract summary for an amendment to a contract: in the 
center of the page, the issuing carrier's name, followed by the words 
``AMENDED CONTRACT SUMMARY''.
    (iii) Date of issue and date to be effective.
    (iv) In the center lower portion, the issuing individual's name and 
address. The name of the individual for service of complaints and 
petitions for discovery must also appear, if different from the issuing 
individual. If not otherwise noted, a complainant/petitioner may rely on 
service to the issuing individual.
    (c) Contract and contract summary numbering system. (1) Each issuing 
carrier shall sequentially number each contract and contract summary 
(and amendment and amended contract summary) it issues. The contract and 
contract summary identification number must include the word ``ICC,'' 
the industry standard alphabet code for the issuing railroad (limited to 
four letters), the letter ``C,'' and the sequential number, with each 
separated by a hyphen. The following is an example: the 357th contract 
filed by the Conrail would have the following identification number: 
``ICC-CR-C-0357.''
    (2) Amendments to contracts shall be reflected in a corresponding 
amended contract summary.
    (3) At the carrier's option, it may issue contracts with 
nonconsecutive numbers if it assigns blocks of numbers to different 
departments. An index to the blocks of reserved numbers shall be filed 
with the Commission.
    (4) Contract amendments and amended contract summaries must be 
sequentially numbered.
    (d) Modification of contract termination dates. (1) An amendment 
extending a contract expiration date must be filed with the Commission 
prior to such expiration date. An amendment reactivating an expired 
contract will not be accepted more than 180 days after such expiration 
date.
    (2) Whenever a contract provides for automatic renewal or extension, 
absent unilateral action terminating it, the filing carrier must file a 
notice with the Commission when the contract is terminated. Said notice 
must be filed not more than 180 days after the termination of the 
contract.

[[Page 347]]

    (3) Whenever a contract is to be terminated before the termination 
date, if any, specified therein, the filing carrier must advise the 
Commission not more than 180 days after such termination. If the 
contract is terminated through unilateral action provided for therein, 
the filing carrier must file a notice announcing such termination; if 
the termination results from an agreement among the parties, an 
amendment must be filed to implement such termination.
    (e) Application for relief from requirements of paragraphs (a), (b), 
(c) or (d) of this section. (1) Application for relief from one or more 
of the requirements of paragraphs (a), (b), (c) or (d) of this section 
shall be submitted to the Suspension/Special Permission Board.
    (2) They shall be accompanied by appropriate filing fee (see 49 CFR 
part 1002), and marked ``Special Contract/Summary Authority 
Application.''
    (3) Applications must explain and justify the relief sought.
    (4) An original and one copy of applications concerning contract 
summary filings must be filed. Only an original need be filed in the 
case of applications concerning confidential contract filings.
    (5) The applications will be decided by the Suspension/Special 
Permission Board with appeals available under 49 CFR 1118.4.

[53 FR 5380, Feb. 24, 1988, as amended at 55 FR 157, Jan. 3, 1990; 56 FR 
58320, Nov. 19, 1991; 57 FR 40622, Sept. 4, 1992; 58 FR 7756, Feb. 9, 
1993]



Sec. 1313.8  Contract and contract summary availability.

    (a)(1) Except as provided in paragraph (a)(2) of this section, the 
contract filed under these rules shall not be available to persons other 
than the parties to the contract and authorized Commission personnel, 
except by informal discovery under 49 CFR 1313.14 and/or by Commission 
decision.
    (2) A contract and its summary filed under 49 U.S.C. 10713 may be 
labeled ``nonconfidential.'' Such a designation will permit the general 
public to inspect the entire contract.
    (b)(1) The contract summary filed under these rules shall be 
available from the Commission's Bureau of Traffic and Contract Advisory 
Service.
    (2) The contract summary filed under these rules shall not be 
required to be posted in any stations, but shall be made available upon 
reasonable request from the carriers participating in the contract.



Sec. 1313.9  Formats for initial and amended contract summaries.

    (a) The contract summary must enumerate and have each item 
completed. When the item does not pertain to the contract, the term 
``Not Applicable'' (``NA'') shall be used.
    (b)(1) Changes in prior contract summaries must be underscored and 
must be followed by the words ``addition,'' ``deletion,'' ``extension,'' 
``cancellation,'' or other appropriate descriptive phrase in 
parentheses. If the change to the contract is only in confidential 
matter, a statement to that effect must be made in the amended contract 
summary and must indicate the particular feature to which the change 
applies (i.e., rate, special feature, etc.). If ``not applicable'' is 
permitted in the original summary under Sec. Sec. 1313.10-1313.12, the 
amended summary may use ``not applicable'' with a notation that a change 
pertained only to confidential data.
    (2) Amended contract summaries filed under this provision may not 
substitute phrases such as ``not applicable'' or ``no change'' where 
disclosure was required in the original contract (such as in the 
commodity description); amended contract summaries must set forth all 
non-confidential terms in the contract, whether amended or not.
    (3) An amendment that shortens the life of a contract must be 
publicized in a contract summary for the amendment.



Sec. 1313.10  Contract summary content--agricultural commodities.

    (a) Contract summaries for agricultural commodities (excluding 
forest products and paper) must contain the following information which 
includes that required to be disclosed under 49 U.S.C. 10713(b)(2)(A). 
These requirements also apply to amended contract summaries.

[[Page 348]]

    (b)(1) Carrier names. A list, alphabetically arranged, of the 
corporate names of all carriers that are parties to the contract plus 
the addresses for service of complaints [must be provided].
    (2) Specific commodity. The specific commodity or commodities to be 
transported under the contract must be identified. Vague commodity 
descriptions such as ``grain'' are not permitted, even if that is the 
commodity description in the contract.
    (3) Shipper identity. The specific identity of the shipper party to 
the contract must be disclosed. A shipper that is party to the contract 
who is acting on behalf of another party or parties at the time the 
contract is entered into must identify the other party or parties to the 
extent known at the time.
    (4) Specific origins, destinations, transit points, and other 
shipper facilities. (i) Each specific origin and destination point to 
and from which the contract applies must be shown except that references 
to tariffs or broad geographic descriptions such as ``all stations in 
Kansas'' shall be permitted only to the extent such terms are actually 
used in the contract and such origins and destination are subject to 
specific identification by reference to tariffs or broad geographic 
descriptions. Tariff references must be accompanied by some geographic 
reference. Vague descriptions such as ``various points in Kansas'' are 
prohibited.
    (ii) Each port must be identified.
    (iii) Each transit point identified in the contract must be 
identified in the contract summary.
    (iv) Each shipper facility affecting the contract must be listed if 
it is not included in the origin/destination points or transit points, 
but affects performance under the contract. Identification is required 
only to the extent such facilities are identified in the contract or are 
known to the contracting parties at the time of filing the contract.
    (5) Contract duration. (i) If applicable, the date on which the 
transportation service has begun under a contract before the date such 
contract is filed with or approved by the Commission.
    (ii) The date on which the contract became applicable to the 
transportation services provided under the contract.
    (iii) Termination date of the contract. If the terms of the contract 
provide for automatic extension or renewal, such information must be 
shown in connection with the termination date.
    (iv) Provisions for optional extension.
    (6) Rail car data. Provide, by number of dedicated cars, or, at the 
carrier's option, car days:
    (i) By major car type used to fulfill the contract or contract 
options:
    (A) Available and owned by the carrier(s) listed in paragraph (b)(1) 
of this section;
    (B) Available and leased by the carrier(s) with average number of 
bad-order cars identified;
    (C) (Optional) On order (for ownership or lease) along with delivery 
dates; and
    (D) In the event a complaint is filed involving common carrier 
obligation and carrier furnished cars, the carrier(s) shall immediately 
submit to the Commission and the complainant additional data on cars 
used to fulfill the challenged contract. Data shall include (by major 
car type used to fulfill the contract):
    (1) Total bad-car orders;
    (2) Assigned car obligations; and
    (3) Free-running cars.
    (ii) In addition to subparagraph (b)(6)(i) of this subsection if 
agricultural commodities (including forest products but not including 
woodpulp, wood chips, pulpwood or paper) the carrier must submit a 
certified statement:
    (A) That the cumulative equipment total for all contracts does not 
exceed 40 percent of the capacity of carrier owned and leased cars by 
applicable major car type; and
    (B) In the case of the agricultural shipper which originated an 
average 1,000 cars or more per year during the prior 3-year period by 
major car type, that the equipment used does not exceed 40 percent of 
the carrier owned or leased cars used on the average by that shipper 
during the previous 3 years.
    (iii) Rail car data need not be furnished if:

[[Page 349]]

    (A) The shipper furnishes the rail cars, unless the rail cars are 
leased from the carrier; or,
    (B) The contract is restricted to certain services which do not 
entail car supply.
    (7) Base rates and charges. (i) Identify the specific base rates 
and/or charges. This is satisfied by identifying the specific tariff 
provisions which would apply without the contract.
    (ii) Summarize escalation provisions.
    (8) Volume. Identify all volume, car and/or train size requirements 
as set forth in the contract including:
    (i) Movement type (single car, multiple car, unit train).
    (ii) Minimum and actual volume requirements under contract for the 
applicable period(s) (annual, quarterly, etc.).
    (iii) Volume breakpoints affecting the contract.
    (9) Special features. Identify existence (but not the terms or 
amount) of special features such as transit time commitments, credit 
terms, discounts, switching, special demurrage, guaranteed or minimum 
percentages, etc.

[53 FR 5380, Feb. 24, 1988, as amended at 57 FR 40622, Sept. 4, 1992]



Sec. 1313.11  Contract summary content--forest products and paper.

    (a) Contract summaries for forest products and paper must contain 
the following terms in the order named. These requirements also apply to 
amended contract summaries.
    (b)(1) Carrier names. A list, alphabetically arranged, of the 
corporate names of all carriers that are parties to the contract plus 
the addresses for service of complaints [must be submitted].
    (2) Specific commodity. The specific commodities to be transported 
under the contract must be identified except that broad commodity 
descriptions such as ``forest products'' are permitted only to the 
extent that is the commodity description in the contract.
    (3) Specific origins and destinations. (i) Each specific origin and 
destination point to and from which the contract applies must be shown 
except that references to tariffs or broad geographic descriptions such 
as ``all stations in Oregon'' are permitted only to the extent such 
terms are actually used in the contract and such origins and 
destinations are subject to specific identification by reference to 
tariffs or broad geographic descriptions. Tariff references must be 
accompanied by some geographic reference. Vague descriptions such as 
``various points in Oregon'' are prohibited.
    (ii) Each port must be identified.
    (4) Contract duration. (i) If applicable, the date on which the 
transportation service has begun under a contract before the date such 
contract is filed with or approved by the Commission.
    (ii) The date on which the contract services became applicable to 
the transportation services provided under the contract.
    (iii) Termination date of the contract. If the terms of the contract 
provide for automatic extension or renewal, such information must be 
shown in connection with the termination date.
    (5) Rail car data. The information required under Sec. 1313.10(b)(6) 
must be provided.
    (6) Base rates and charges. (i) Identify the specific base rates 
and/or charges. This is satisfied by identifying the general tariff 
provisions, or the general tariff provisions which would apply without 
the contract.
    (ii) Identify existence of, but not terms or amount of, any movement 
type (e.g. single car, multiple car, unit train), minimum volume 
requirement (if applicable), or escalation provisions.
    (7) Special features. Identify existence (but not the terms or 
amount) of special features such as transit time commitments, guaranteed 
car supply, minimum percentage of traffic requirements, credit terms, 
discounts, etc.

[53 FR 5380, Feb. 24, 1988, as amended at 57 FR 40622, Sept. 4, 1992]



Sec. 1313.12  Contract summary content--port traffic (other than agricultural commodities, forest products, and paper).

    (a) Contract summaries for other commodities or services involving a 
port must contain the information required in Sec. 1313.11(b) (1), (2), 
(4), (6) and (7) and 1313.10(b)(6). In addition, the port shall be named 
and the tariff mileage rounded to the nearest 50 miles

[[Page 350]]

shall be disclosed (or, at the contracting parties' option, the origin 
and destination shall be specified). The required information shall be 
disclosed for each movement involving multiple origins and destinations. 
These requirements also apply to amended contract summaries.
    (b) [Reserved]



Sec. 1313.13  Contract summary content--other commodities or services not involving a port.

    (a) Contract summaries for other commodities not involving a port 
must contain the commodity or commodities to be transported under the 
contract and the information required in Sec. 1313.11(b) (1) and (4), 
and Sec. 1313.10(b)(6). Paragraph (b)(7) of Sec. 1313.11 is applicable 
only to the extent that service requirements are placed in the contract. 
These requirements also apply to amended contract summaries.
    (b) [Reserved]



Sec. 1313.14   Informal discovery.

    (a) Prior to filing a petition for formal discovery under 49 CFR 
1313.15, a petitioner may request discovery from the carrier.
    (b) The carrier must promptly grant or deny the request.
    (c) Agreements between carriers and shippers for informal discovery 
are permitted under these rules.



Sec. 1313.15   Contract discovery.

    (a) Petition. A petition to discover contract provisions must show 
that petitioner is a shipper or port, has standing to file a complaint 
under 49 U.S.C. 10713(d)(2) (A) or (B), and that petitioner is affected 
by the contract. The following information will be considered in making 
a determination on whether to permit discovery.
    (1) Standing. Identify the provision(s) in 49 U.S.C. 10713(d) under 
which petitioner has standing to file a complaint.
    (2) Affected party. An affected party is one that is an actual or 
potential participant in the relevant market. The following information 
is relevant to making that determination and should be provided.
    (i) Nature and volume of petitioner's relevant business.
    (ii) Relevant commodities petitioner ships or receives;
    (iii) Comparisons between petitioner's commodities, locations of 
shipping facmlities and serving carriers, actual or potential traffic 
patterns and serving carrier(s), with the traffic patterns and serving 
carrier(s) identified in the contract summary. State whether petitioner 
is a consignor or consignee.
    (iv) Showing of an ability to ship the commodity in question at a 
time generally simultaneous with the contract at issue.
    (v) Any additional information petitioner considers appropriate to 
support its request, including prior negotiations, if any.
    (vi) Demonstrate how and to what degree the petitioner's relevant 
business may be affected by the contract terms as disclosed in the 
summary.
    (vii) Proof of actual injury is not required to satisfy this rule.
    (3) Demonstrated need. (i) With regard to the grounds for complaint 
under 49 U.S.C. 10713(d)(2)(B), the demonstrated need test applies to 
contracts for forest products and paper, non-agricultural port traffic, 
and other commodities. The test does not apply to agricultural commodity 
contracts.
    (ii) A petitioner seeking disclosure of non-agricultural contract 
information must show that the contract terms it seeks are relevant to 
its potential challenge to the contract.
    (iii) As car data is published in the contract summary, a petition 
for further disclosure on the basis that the contract may impair the 
contracting carrier's common obligation must establish a nexus between 
the information sought and the common carrier obligation. Before 
information regarding special features will be disclosed, a petitioner 
must show how the special feature or certain forms of that special 
feature could impair the contracting carrier's common carrier obligation 
and how that impairment may affect the petitioner. On receiving such a 
petition, the carrier must furnish to the petitioner and the Commission 
the data required by Sec. 1313.10(b)(6)(i)(D).

[[Page 351]]



Sec. 1313.16  Procedures for contract discovery and complaints.

    (a) Complaints, discovery petitions, replies, and appeals. (1) 
Discovery petitions and/or sketetal complaints must be filed no later 
than the 18th day after the contract and summary are properly filed.
    (2) Petitions must note on the front page ``Petition for Discovery 
of Rail Contract'' and note the contract and amendment numbers.
    (3) A skeletal complaint as required under paragraph (b) of this 
section must accompany the petition.
    (4) Petitioner must certify that 2 copies of the petition and 
complaint have been sent to the contracting carrier(s) either by hand, 
express mail, or other overnight delivery service the same day as filed 
at the Commission. The contracting carrier shall in turn serve the 
contracting shipper with a copy of the petition and complaint. Replies 
shall be served in the same manner on complainant/petitioner.
    (5) Replies to the petition are due within 5 days from the date of 
filing of the petition and in no event later than noon on the 23rd day 
following filing of the contract.
    (6) An original and 10 copies of the petition, skeletal complaint 
and replies plus 2 transmittal letters must be filed with the Commission 
in an envelope labeled ``Suspension/Special Permission Board--
Confidential Contract Material.''
    (7) An appeal of a Suspension/Special Permission Board's decision 
must be made in accordance with 49 CFR 1132.2, subject to the following:
    (i) An appeal must be received within 2 days of the Board's decision 
(anticipated by day 26 after the contract filing date), but in no event 
later than the 28th day after the contract filing date.
    (ii) The appeal shall be filed with the Suspension/Special 
Permission Board for handling and will be considered by the entire 
Commission.
    (iii) Telegraphic notice or its equivalent must be given to the 
opposing party.
    (iv) Replies to the appeal must be received within one day after the 
appeal is filed.
    (v) The number of copies of appeals and replies required is the same 
as provided in paragraphs (a) (4) and (6) of this section.
    (8) Protective order. If confidential contract data or data 
disclosed pursuant to Sec. Sec. 1313.15, 1313.16, or 1313.17 are filed 
with the Commission in a complaint, petition, reply or other pleading, 
the party filing these data should submit them as a separate package, 
clearly marked on the outside ``Confidential Material Subject to 
Protective Order.'' The order in paragraph (a)(9) of this section 
applies to the parties specified in the order who receive confidential 
information through proceedings before the Commission or through 
informal discovery.
    (9) Order. Petitioner and carriers, and their duly authorized agents 
agree to limit to the discovery/complaint proceeding involving the 
contract, the use of contract information or other confidential 
commercial information which may be revealed in the contract, the 
complaint, reply, or any other pleading relating to the contract. This 
agreement shall be a condition to release of any contract term by a 
petitioner/complainant and shall operate similarly on a carrier in 
possession of confidential information which may be contained in a 
complaint, petition for discovery, or request for informal disclosure. 
Any information pertaining to parties to the contract, or subject to the 
contract (including consignors, consignees and carriers), or pertaining 
to the terms of the contract, or relating to the petitioner's/
complainant's confidential commercial information, must be kept 
confidential. Neither the information nor the existence of the 
information shall be disclosed to third parties, except for: consultants 
or agents who agree, in writing, to be bound by this regulation; 
information which is publicly available; information which, after 
receipt, becomes publicly available through no fault of the party 
seeking to disclose the information after it has become publicly 
available, or is acquired from a third party free of any restriction as 
to its disclosure. The petitioner/complainant or carrier must take all 
necessary steps to assure that the information will be kept confidential 
by its employees and

[[Page 352]]

agents. No copies of the contract terms or other confidential 
information are to be retained by the parties not originally privy to 
the data subsequent to the termination of the proceeding or the 
expiration of Commission jurisdiction under 49 CFR 1313.2.
    (b)(1) Complaint proceedings, complainants and replies. On receipt 
of a skeletal complaint by the 18th day after the contract filing date, 
a complaint proceeding will be instituted to extend this Commission's 
jurisdiction to 60 days after the contract filing date regardless 
whether a petition for discovery is filed or approved. The decision will 
provide for automatic dismissal of the proceeding and approval of the 
contract if complainant(s) fail to submit the case-in-chief by the due 
date established in paragraph (b)(5) of this section.
    (2) The skeletal complaint must contain the correct, unabbreviated 
names and addresses of the complainant(s) and defendant. The complainant 
must set out the statutory provisions under which it has standing to 
file a complaint.
    (3) If discovery is granted, the carrier must furnish the required 
information by the 1st working day after the Commission issues a final 
decision.
    (4) Upon institution of a complaint proceeding, approval of the 
contract is postponed to 60 days after the contract filing date or until 
the Commission issues a decision approving the contract, if earlier.
    (5) The amended complaint and case-in-chief are due 39 days after 
the filing of the contract.
    (6) Replies of the carrier defendant(s) are due 46 days after the 
filing of the contract.



Sec. 1313.17  Grounds for contract review and complaints.

    (a) Within 30 days of the contract filing date, the Commission may, 
on its own motion or on complaint, begin a proceeding to review the 
contract. Review can be based only on allegation of violations as 
described in paragraph (b) of this section.
    (b) A contract may be reviewed only on the following grounds:
    (1) In the case of a contract, other than a contract for the 
transportation of agricultural commodities (including forest products 
and paper), a complaint may be filed:
    (i) By a shipper only on the grounds that the shipper individually 
will be harmed because the proposed contract unduly impairs the ability 
of the contracting carrier to meet common carrier obligations under 49 
U.S.C. 11101; or
    (ii) By a port on the grounds that the port individually will be 
harmed because the proposed contract will result in unreasonable 
discrimination against the port.
    (2) In the case of a contract for the transportation of agricultural 
commodities (including forest products and paper), in addition to the 
grounds for a complaint described in paragraph (b)(1)(i) of this 
section, a complaint may be filed on the grounds that the shipper 
individually will be harmed because:
    (i) The rail carrier(s) unreasonably discriminated by refusing to 
enter into a similar contract with the shipper for rates and services 
for the transportation of the same type of commodity under similar 
conditions to the contract at issue and that the shipper was ready, 
willing, and able to enter into such a contract at a time essentially 
contemporaneous with the period during which the contract was offered; 
or
    (ii) The proposed contract constitutes a destructive competitive 
practice.
    (3) Unreasonable discrimination as used in these rules means, when 
applied to shippers of agricultural commodities (including forest 
products and paper), that the railroad has refused to enter into a 
contract with the shipper for rates and services for the transportation 
of the same type of commodity under similar conditions to the contract 
at issue, and that the shipper was ready, willing, and able to enter 
into such a contract at a time essentially contemporaneous with the 
period during which the contract at issue was offered; and, when applied 
to a port, has the same meaning as the term has under 49 U.S.C. 10741.
    (4) The definitions for agricultural commodities, forest products, 
and paper will be decided on a case-by-case basis.

[[Page 353]]



PART 1320--EXTENSION OF CREDIT TO SHIPPERS BY RAIL COMMON CARRIERS, MOTOR COMMON CARRIERS, WATER COMMON CARRIERS, AND HOUSEHOLD GOODS FREIGHT FORWARDERS--Table of Contents




Sec.
1320.1  Scope.
1320.2  Extension of credit to shippers.
1320.3  Presentation of freight bills.
1320.4  Effect of mailing freight bills or payments.
1320.5  Additional charges.
1320.6  Computation of time.
1320.7  Charges under average demurrage agreements.
1320.8  Household goods shipments by motor common carriers.
1320.9-1320.16  [Reserved]
1320.17  Interline settlement of revenues.

    Authority: 5 U.S.C. 553 and 49 U.S.C. 10321, 10701, 10702, 10741, 
10743, and 10744.

    Source: 50 FR 2290, Jan 16, 1985, unless otherwise noted.



Sec. 1320.1  Scope.

    (a) General. These regulations apply to the extension of credit in 
the transportation of property under Interstate Commerce Commission 
regulation by rail, motor, and water carriers and household goods 
freight forwarders, except as otherwise provided.
    (b) Exceptions. These regulations do not apply to--
    (1) Contract carriage operations.
    (2) Transportation for--
    (i) The United States or any department, bureau, or agency thereof,
    (ii) Any State, or political subdivision thereof,
    (iii) The District of Columbia.
    (3) Property transportation incidental to passenger operations.

[50 FR 2290, Jan. 16, 1985, as amended at 51 FR 44297, Dec. 9, 1986]



Sec. 1320.2  Extension of credit to shippers.

    (a) Authorization to extend credit. (1) A carrier that meets the 
requirements in paragraph (a)(2) of this section may--
    (i) Relinquish possession of freight in advance of the payment of 
the tariff charges, and
    (ii) Extend credit in the amount of such charges to those who 
undertake to pay them (such persons are called shippers in this part).
    (2) For such authorization, the carrier shall take reasonable 
actions to assure payment of the tariff charges within the credit 
periods specified--
    (i) In this part, or
    (ii) In tariff provisions published pursuant to the regulations in 
paragraph (d) of this section.
    (b) When the credit period begins. The credit period shall begin on 
the day following presentation of the freight bill.
    (c) Length of credit period. Unless a different credit period has 
been established by tariff publication pursuant to paragraph (d) of this 
section, the credit period is 15 days. It includes Saturdays, Sundays, 
and legal holidays.
    (d) Carriers may establish different credit periods in tariff rules. 
Carriers may publish tariff rules establishing credit periods different 
from those in paragraph (c) of this section. Such credit periods shall 
not be longer than 30 calendar days.
    (e) Service charges. (1) Service charges shall not apply when credit 
is extended and payments are made within the standard credit period. The 
term standard credit period, as used in the preceding sentence, means--
    (i) The credit period prescribed in paragraph (c) of this section, 
or
    (ii) A substitute credit period published in a tariff rule pursuant 
to the authorization in paragraph (d) of this section.
    (2) Carriers may, by tariff rule, extend credit for an additional 
time period, subject if they wish to a service charge for that 
additional time. The combined length of the carrier's standard credit 
period (as defined in paragraph (e)(1) of this section) and its 
additional credit period shall not exceed the 30-day maximum credit 
period prescribed in paragraph (d) of this section. When such a tariff 
rule is in effect, shippers may elect to postpone payment until the end 
of the extended credit period if, in consideration therefor, they 
include any published service charges when making their payment.
    (3) Carriers may, by tariff rule, establish service charges for 
payments made after the expiration of an authorized credit period. Such 
a rule shall--

[[Page 354]]

    (i) Institute such charges on the day following the last day of an 
authorized credit period, and
    (ii) Notify shippers--
    (A) That its only purpose is to prevent a shipper who does not pay 
on time from having free use of funds due to the carrier,
    (B) That it does not sanction payment delays, and
    (C) That failure to pay within the authorized credit period will, 
despite this provision for such charges, continue to require the 
carrier, before again extending credit, to determine in good faith 
whether the shipper will comply with the credit regulations in the 
future.
    (4) Tariff rules that establish charges pursuant to paragraph (e) 
(2) or (3) of this section may establish minimum charges.
    (f) Discounts. Carriers may, by tariff rule, authorize discounts for 
early freight bill payments when credit is extended.
    (g)(1) Collection expense charges. Carriers may, by tariff rule, 
assess reasonable and certain liquidated damages for all costs incurred 
in the collection of overdue freight charges. Carriers may use one of 
two methods in their tariffs:
    (i) The first method is to assess liquidated damages as a separate 
additional charge to the unpaid freight bill. In doing so, the tariff 
rule shall disclose the exact amount of the charges by stating either a 
dollar or specified percentage amount (or a combination of both) of the 
unpaid freight bill. The tariff shall further specify the time period 
(which shall at least allow for the authorized credit period) within 
which the shipper must pay to avoid such liquidated damages.
    (ii) The second method is to require payment of the full, 
nondiscounted rate instead of the discounted rate otherwise applicable. 
The difference between the discount and the full rate constitutes a 
carrier's liquidated damages for its collection effort. Under this 
method the tariff shall identify the discount rates that are subject to 
the condition precedent and which require the shipper to make payment by 
a date certain. The date certain may not be set to occur by the carrier 
until at least after the expiration of the carrier's authorized credit 
period.
    (2) The damages, the timing of their applicability, and the 
conditions, if any, as provided by the tariff-rule methods allowed under 
paragraphs (g)(1) (i) and (ii) of this section also:
    (i) Shall be clearly described in the tariff rule;
    (ii) Shall be applied without unlawful prejudice and/or unjust 
discrimination between similarly situated shippers and/or consignees;
    (iii) Shall be applied only to the nonpayment of original, separate 
and independent freight bills and shall not apply to aggregate balance-
due claims sought for collection on past shipments by a bankruptcy 
trustee, or any other person or agent;
    (iv) Shall not apply to instances of clear clerical or ministerial 
error such as non-receipt of a carrier's freight bill, or shipper's 
payment check lost in the mail, or carrier mailing of the freight bill 
to the wrong address;
    (v) Shall not apply in any way to a charge for a transportation 
service if the carrier's bill of lading independently provides that the 
shipper is liable for fees incurred by the carrier in the collection of 
freight charges on that same transportation service;
    (vi) shall be applied only after the authorized credit period, and 
when the carrier has issued a revised freight bill or notice of 
imposition of collection expense charges for late payment within 90 days 
after expiration of the authorized credit period.
    (3) As an alternative to the tariff-rule methods allowed under 
paragraphs (g)(1) (i) and (ii) of this section, a carrier may, wholly 
outside of its tariff, assess collection charges though contract terms 
in a bill of lading. By using the carrier and its bill of lading, the 
shipper accepts the bill of lading terms.
    (h) Discrimination prohibited. Tariff rules published pursuant to 
paragraphs (d), (e), and (f) of this section shall not result in 
unreasonable discrimination among shippers.

[50 FR 2290, Jan 16, 1985, as amended at 53 FR 6991, Mar. 4, 1988; 54 FR 
30748, July 24, 1989]

[[Page 355]]



Sec. 1320.3  Presentation of freight bills.

    (a) ``To be prepaid'' shipments. (1) On ``to be prepaid'' shipments, 
the carrier shall present its freight bill for all transportation 
charges within the time period prescribed in paragraph (a)(2) of this 
section, except--
    (i) As noted in paragraph (d) of this section, or
    (ii) As otherwise excepted in this part.
    (2) The time period for a carrier to present its freight bill for 
all transportation charges shall be 7 days, measured from the date the 
carrier received the shipment. This time period does not include 
Saturdays, Sundays, or legal holidays.
    (b) ``Collect'' shipments. (1) On ``collect'' shipments, the carrier 
shall present its freight bill for all transportation charges within the 
time period prescribed in paragraph (b)(2) and of this section, except--
    (i) As noted in paragraph (d) of this section, or
    (ii) As otherwise excepted in this part.
    (2) The time period for a carrier to present its freight bill for 
all transportation charges shall be 7 days, measured from the date the 
shipment was delivered at its destination. This time period does not 
include Saturdays, Sundays, or legal holidays.
    (c) Bills or accompanying written notices shall state penalties for 
late payment, credit time limits and service charge and/or collection 
expense charge and discount terms. When credit is extended, freight 
bills or a separate written notice accompanying a freight bill or a 
group of freight bills presented at one time shall state that ``failure 
timely to pay freight charges may be subject to tariff penalties'' (or a 
statement of similar import). The bills or other notice shall also state 
the time by which payment must be made and any applicable service charge 
and/or collection expense charge and discount terms.
    (d) When the carrier lacks sufficient information to compute tariff 
charges. (1) When information sufficient to enable the carrier to 
compute the tariff charges is not then available to the carrier at its 
billing point, the carrier shall present its freight bill for payment 
within 7 days following the day upon which sufficient information 
becomes available at the billing point. This time period does not 
include Saturdays, Sundays, or legal holidays.
    (2) A carrier shall not extend further credit to any shipper which 
fails to furnish sufficient information to allow the carrier to render a 
freight bill within a reasonable time after the shipment is tendered to 
the origin carrier.
    (3) As used in this paragraph, the term ``shipper'' includes, but is 
not limited to, freight forwarders, and shippers' associations and 
shippers' agents within the meaning of 49 U.S.C. 10562 (3) and (4).
    (e) Freight bill presentation on railroad transported export traffic 
loaded into vessels. The term delivered at its destination as used in 
paragraph (b)(2) of this section shall mean the time when the vessel is 
completely loaded, when--
    (1) The traffic in export traffic that is loaded into vessels 
either--
    (i) Direct from railroad cars or piers, or
    (ii) From such cars or pirers by means of lighters, and
    (2) The freight bills are presented to vessel owners or their 
representatives.

[50 FR 2290, Jan 16, 1985, as amended at 53 FR 6991, Mar. 4, 1988; 54 FR 
30748, July 24, 1989]



Sec. 1320.4  Effect of mailing freight bills or payments.

    (a) Presentation of freight bills by mail. When carriers present 
freight bills by mail, the time of mailing shall be deemed to be the 
time of presentation of the bills. The term freight bills, as used in 
this paragraph, includes both paper documents and billing by use of 
electronic media such as computer tapes or disks, when the mails are 
used to transmit them.
    (b) Payment by mail. Wnen shippers mail acceptable checks, drafts, 
or money orders in payment of freight charges, the act of mailing them 
within the credit period shall be deemed to be the collection of the 
tariff charges within the credit period for the purposes of the 
regulations in this part.
    (c) Disputes as to date of mailing. In case of dispute as to the 
date of mailing, the postmark shall be accepted as such date.

[[Page 356]]



Sec. 1320.5  Additional charges.

    When a carrier--
    (a) Has collected the amount of tariff charges represented in a 
freight bill presented by it as the total amount of such charges, and
    (b) Thereafter presents to the shipper another freight bill for 
additional charges--

the carrier may extend credit in the amount of such additional charges 
for a period of 30 calendar days from the date of the presentation of 
the freight bill for the additional charges.



Sec. 1320.6  Computation of time.

    Time periods involving calendar days shall be calculated pursuant to 
49 CFR 1104.7(a).



Sec. 1320.7  Charges under average demurrage agreements.

    (a) Conditions for special credit rules regarding demurrage charges. 
The rules in paragraph (b) of this section shall apply to demurrage 
charges, if--
    (1) The amount of demurrage charges is determinable under average 
agreements made in accordance with tariff provisions, and
    (2) The carrier takes reasonable actions to assure payment of the 
tariff charges within the credit period.
    (b) Special credit rules for demurrage charges. When both conditions 
in paragraph (a) of this section are met, the carrier may--
    (1) Delay presentation of bills for such demurrage charges for a 
period not exceeding 15 calendar days after the end of the authorized 
demurrage period, and
    (2) Extend credit, in the amount of the demurrage charges accrued 
during the demurrage period, for 15 calendar days from the date of 
presentation of the bill for such charges.



Sec. 1320.8  Household goods shipments by motor common carriers.

    (a) Exceptions--Household goods ``collect on delivery'' shipments. 
The regulations in the other sections of this part and in paragraph (c) 
of this section do not apply when the carrier is required by 49 CFR 
1056.3(d) to relinquish possession of an otherwise ``collect on 
delivery'' household goods shipment in advance of payment of all of the 
charges.
    (b) Charge card reversed transactions. The regulations of this part 
apply when--
    (1) Charges for household goods movements are paid by use of charge 
cards pursuant to 49 CFR 1056.19, and
    (2) The shipper forces an involuntary extension of credit by the 
carrier by causing the charge card issuer to reverse the charge 
transaction and charge payments back to the carrier's account.
    (c) Exceptions--House goods credit shipments. The provisions in 
paragraphs (c) (1) through (3) of this section are exceptions to the 
other regulations in this part. They apply to credit extensions for 
household goods transportation by motor common carriers (except as 
provided in paragraph (a) of this section)--
    (1) A freight bill shall be presented within 15 days (excluding 
Saturdays, Sundays, and legal holidays) of the date of delivery of a 
shipment at its destination.
    (2) The credit of period is 7 days (excluding Saturdays, Sundays, 
and legal holidays).
    (3) Motor Common carriers of household goods must provide in their 
tariffs that--
    (i) The credit period shall automatically be extended to a total of 
30 calendar days for any shipper who has not paid the carrier's freight 
bill within the 7-day period.
    (ii) Such shipper will be assessed a service charge by the carrier 
equal to 1 percent of the amount of the freight bill, subject to a $10 
minimum charge, for such extension of the credit period, and
    (iii) No such carrier shall grant credit to any shipper who fails to 
pay a duly presented freight bill within the 30-day period, unless and 
until such shipper affirmatively satisfies the carrier that all future 
freight bills duly presented will be paid strictly in accordance with 
the rules and regulations prescribed by the Commission for the 
settlement of carrier rates and charges.

[[Page 357]]

Sec. 1320.9--1320.16  [Reserved]



Sec. 1320.17  Interline settlement of revenues.

    Nothing in this part shall be interpreted as affecting the interline 
settlement of revenues from traffic which is transported over through 
routes composed of lines of common carriers subject to Interstate 
Commerce Commission jurisdiction under Subchapters I, II, or III or 
Chapter 105 of Title 49, Subtitle IV, of the United States Code.



PARTS 1321-1324--[RESERVED]






PART 1325--EXTENSION OF CREDIT TO CANDIDATES FOR FEDERAL OFFICE OR THEIR REPRESENTATIVES--Table of Contents




Sec.
1325.1  Extension of unsecured credit prohibited.
1325.2  Credit agreements.
1325.3  Federal office.

    Authority: Pub. L. 92-225, the Federal Election Campaign Act of 
1971, enacted Feb. 7, 1972.

    Source: 37 FR 10446, May 23, 1972, unless otherwise noted.



Sec. 1325.1   Extension of unsecured credit prohibited.

    Persons subject to regulation by the Interstate Commerce Commission 
shall not knowingly and willfully provide, for candidates for Federal 
office or their representatives, service or goods related to their 
campaign without obtaining either prepayment or a binding guarantee of 
payment through a sufficient deposit, bond, collateral, or other means 
of security. The extension of credit to such persons shall not exceed 
the amount of the security posted.



Sec. 1325.2   Credit agreements.

    (a) All agreements to extend credit to candidates for Federal office 
or their representatives by persons subject to regulation by the 
Interstate Commerce Commission (1) must be in writing, (2) must contain 
a detailed description of the deposit, bond, collateral, or other means 
of security, used to secure payment of the debt, and (3) must be signed 
by all parties to the agreement. A copy of each such agreement must be 
filed with this Commission's Bureau of Operations in Washington, DC, 
within 20 days of the date of its execution.
    (b) [Reserved]



Sec. 1325.3   Federal office.

    For the purposes of this section, Federal office means the office of 
President or Vice President of the United States; or of Senator or 
Representative in, or Delegate or Resident Commissioner to, the Congress 
of the United States.



PART 1331--APPLICATIONS UNDER 49 U.S.C. 10706 TO ESTABLISH OR CONTROL AGREEMENTS BETWEEN OR AMONG CARRIERS--Table of Contents




Sec.
1331.1  Form and content of application.
1331.2  Required exhibits.
1331.3  Procedure.
1331.4  New parties to an agreement.
1331.5  Additional standards for retaining antitrust immunity by 
          passenger bus industry rate bureaus.

    Authority: 49 U.S.C. 10706 and 10321.

    Source: 55 FR 11206, Mar. 27, 1990, unless otherwise noted.



Sec. 1331.1  Form and content of application.

    The application and supporting exhibits shall conform to 49 CFR part 
1104 and shall show, in the order and with the paragraph designations 
indicated, the following:
    (a) Full name and business address of the carrier applicant(s); 
whether each applicant is a corporation, individual, or partnership; if 
a corporation, the State of incorporation; and if a partnership, the 
names of the partners and date of the partnership's formation.
    (b) Full name and business address of each entity on whose behalf 
the application is filed and whether it is a corporation, individual, or 
partnership.
    (c) Whether applicant and each entity on whose behalf the 
application is filed is a rail, motor, or water carrier, a household 
goods freight forwarder, or express, sleeping-car, or pipeline company.
    (d) If the agreement of which approval is sought pertains to a 
conference, bureau, committee, or other organization, a complete 
description of

[[Page 358]]

such organization, including any subunits, and of its or their functions 
and methods of operation, together with a description of the territorial 
scope of such operations, and a complete description of any working or 
other arrangement or relationship that such organization has with any 
other organization. If the agreement is of any other character, a 
precise statement of its nature and scope and the mode of procedure 
thereunder.
    (e) The facts and circumstances relied upon to establish that the 
agreement will promote the national transportation policy at 49 U.S.C. 
10101.
    (f) The name, title, and address of the person to whom 
correspondence is to be sent.



Sec. 1331.2  Required exhibits.

    There shall be filed with and made a part of each original 
application, and each copy, the following exhibits:
    (a) As Exhibit 1, a true copy of the agreement.
    (b) If the agreement pertains to a conference, bureau, committee, or 
other organization:
    (1) As Exhibit 2, a copy of the constitution, bylaws, or other 
documents or writings specifying the organization's powers, duties, and 
procedures, unless incorporated in the agreement filed as Exhibit 1;
    (2) As Exhibit 3, an organization chart; and
    (3) As Exhibit 4, a schedule of its charges to members or a 
statement showing how the expenses are divided among the members.
    (c) As Exhibit 5, opinion of counsel that the application meets the 
requirements of 49 U.S.C. 10706, with specific reference to any 
specially pertinent provisions of articles of incorporation or 
association.



Sec. 1331.3  Procedure.

    (a) Applicant shall serve a copy of the application by first class 
mail upon the regulatory body having jurisdiction over rates, fares, or 
charges of each State or territory covered by the agreement, and the 
original application filed with the Commission shall include a 
certificate naming the bodies upon whom the application has been served.
    (b) The Commission will publish in the Federal Register a notice 
that an application has been filed under these rules and indicating how 
a hearing on the application may be obtained.
    (c) A protest to an application should conform to 49 CFR part 1104.
    (d) The Commission's general rules of practice govern procedural 
matters not specifically covered by these rules.



Sec. 1331.4  New parties to an agreement.

    Where a carrier becomes a party to an agreement which has been 
approved by the Commission, such approval will extend to such carrier 
upon the filing with the Commission by the carrier or its authorized 
agent of a verified statement that it has become a party to the 
agreement, which statement shall show the information prescribed at 
Sec. 1331.1(b). Such carrier may provide transportation under joint 
rates or over through routes, but may not otherwise act with carriers of 
a different class (as defined at 49. U.S.C. 10706(d)).



Sec. 1331.5  Additional standards for retaining antitrust immunity by passenger bus industry rate bureaus.

    (a) Rate bureaus must comply with the terms of their agreements, as 
approved by the Commission. Failure to do so will result in lack of 
immunity for that activity.
    (b) The bureaus are required to maintain detailed minutes of all 
meetings where immunized matters are discussed. The bureaus will be 
subject to withdrawal of their immunity for serious continuing 
violations of Commission standards, and individual tariff publications 
will be subject to rejection, suspension, or investigation for 
improprieties in the rate bureau process.
    (c) Absent Commission approval, no other changes may be made in any 
approved agreement.
    (d) For the purposes of the statute, the following definitions shall 
apply:
    (1) A general increase is a proposed general adjustment of 
substantially all the rates published in a rate bureau's tariff(s).
    (2) A broad change in tariff structure modifies in a relatively non-
uniform fashion the relationship between most

[[Page 359]]

rates published in a rate bureau's tariff, and applies to a large area, 
either nationally or regionally.
    (3) An innovative fare will be determined on a case-by-case basis; 
the Commission will, on request, issue opinions on whether particular 
rate proposals may be regarded as innovative. Two examples of an 
innovative fare are:
    (i) A fare for unlimited passenger travel; and
    (ii) An experimental fare providing for transportation at the 
passenger's option over the line of one or more carriers.
    (4) A promotional fare generally has three characteristics:
    (i) Limited duration;
    (ii) Attractive price or level of service quality; and
    (iii) Some added feature in addition to those normally offered.



PART 1332--FILING CONTRACTS FOR SURFACE MAIL TRANSPORTATION--Table of Contents




Sec.
1332.1  Applicability.
1332.2  Availability of contracts.
1332.3  Manner of submitting contracts.

    Authority: Sec. 5005(b)(3), 84 Stat. 767, 39 U.S.C. 5005.



Sec. 1332.1   Applicability.

    The provisions of this part shall apply to copies of all contracts 
or agreements entered into by the U.S. Postal Service with any common 
carrier by rail or motor vehicle (including passenger-carrying vehicle), 
or freight forwarder, express company, or other person, for the surface 
transportation of mail as authorized by Chapters 50 and 52 of Title 39, 
United States Code, as revised and reenacted by the Postal 
Reorganization Act, 84 Stat. 719, 39 U.S.C. 5001 and 5201.

[36 FR 6426, Apr. 3, 1971]



Sec. 1332.2  Availability of contracts.

    Upon request from any member of the public to inspect a contract(s) 
or agreement(s) described in Sec. 1332.1, at any time between the 
effective date of such contract(s) or agreement(s) and 15 days prior 
thereto, the Commission will obtain the requested contract(s) or 
agreement(s) from the U.S. Postal Service and make it (them) available 
for inspection.

[57 FR 23539, June 4, 1992]



Sec. 1332.3  Manner of submitting contracts.

    The U.S. Postal Service will submit to the Commission, upon request, 
a copy of the requested contract(s) or agreement(s). Such contract(s) or 
agreement(s) will be submitted by facsimile transmission or messenger 
service where feasible, and, where such services are not feasible, by 
the fastest available mail service.

[57 FR 23539, June 4, 1992]

[[Page 361]]



                              FINDING AIDS




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

  A list of CFR titles, subtitles, chapters, subchapters and parts and 
an alphabetical list of agencies publishing in the CFR are included in 
the subject index volume to the Code of Federal Regulations which is 
published separately and revised annually.

  Table of CFR Titles and Chapters
  Alphabetical List of Agencies Appearing in the CFR
  Redesignation Table
  List of CFR Sections Affected




[[Page 363]]





                    Table of CFR Titles and Chapters




                   (Revised as of September 30, 1996)

                      Title 1--General Provisions

         I  Administrative Committee of the Federal Register 
                (Parts 1--49)
        II  Office of the Federal Register (Parts 50--299)
        IV  Miscellaneous Agencies (Parts 400--500)

                          Title 2--[Reserved]

                        Title 3--The President

         I  Executive Office of the President (Parts 100--199)

                           Title 4--Accounts

         I  General Accounting Office (Parts 1--99)
        II  Federal Claims Collection Standards (General 
                Accounting Office--Department of Justice) (Parts 
                100--299)

                   Title 5--Administrative Personnel

         I  Office of Personnel Management (Parts 1--1199)
        II  Merit Systems Protection Board (Parts 1200--1299)
       III  Office of Management and Budget (Parts 1300--1399)
        IV  Advisory Committee on Federal Pay (Parts 1400--1499)
         V  The International Organizations Employees Loyalty 
                Board (Parts 1500--1599)
        VI  Federal Retirement Thrift Investment Board (Parts 
                1600--1699)
       VII  Advisory Commission on Intergovernmental Relations 
                (Parts 1700--1799)
      VIII  Office of Special Counsel (Parts 1800--1899)
        IX  Appalachian Regional Commission (Parts 1900--1999)
        XI  Armed Forces Retirement Home (Part 2100)
       XIV  Federal Labor Relations Authority, General Counsel of 
                the Federal Labor Relations Authority and Federal 
                Service Impasses Panel (Parts 2400--2499)
        XV  Office of Administration, Executive Office of the 
                President (Parts 2500--2599)
       XVI  Office of Government Ethics (Parts 2600--2699)
       XXI  Department of the Treasury (Parts 3100--3199)
      XXII  Federal Deposit Insurance Corporation (Part 3202)
     XXIII  Department of Energy (Part 3301)

[[Page 364]]

      XXIV  Federal Energy Regulatory Commission (Part 3401)
      XXVI  Department of Defense (Part 3601)
       XXX  Farm Credit System Insurance Corporation (Parts 4000--
                4099)
      XXXI  Farm Credit Administration (Parts 4100--4199)
    XXXIII  Overseas Private Investment Corporation (Part 4301)
        XL  Interstate Commerce Commission (Part 5001)
       XLI  Commodity Futures Trading Commission (Part 5101)
       XLV  Department of Health and Human Services (Part 5501)
      XLVI  Postal Rate Commission (Part 5601)
     XLVII  Federal Trade Commission (Part 5701)
    XLVIII  Nuclear Regulatory Commission (Part 5801)
         L  Department of Transportation (Part 6001)
       LII  Export-Import Bank of the United States (Part 6201)
      LIII  Department of Education (Parts 6300--6399)
       LIV  Environmental Protection Agency (Part 6401)
       LIX  National Aeronautics and Space Administration (Part 
                6901)
        LX  United States Postal Service (Part 7001)
      LXII  Equal Employment Opportunity Commission (Part 7201)
     LXIII  Inter-American Foundation (Part 7301)
       LXV  Department of Housing and Urban Development (Part 
                7501)
      LXVI  National Archives and Records Administration (Part 
                7601)
      LXIX  Tennessee Valley Authority (Part 7901)
     LXXIV  Federal Mine Safety and Health Review Commission (Part 
                8401)
     LXXVI  Federal Retirement Thrift Investment Board (Part 8601)
    LXXVII  Office of Management and Budget (Part 8701)

                          Title 6--[Reserved]

                         Title 7--Agriculture

            Subtitle A--Office of the Secretary of Agriculture 
                (Parts 0--26)
            Subtitle B--Regulations of the Department of 
                Agriculture
         I  Agricultural Marketing Service (Standards, 
                Inspections, Marketing Practices), Department of 
                Agriculture (Parts 27--209)
        II  Food and Consumer Service, Department of Agriculture 
                (Parts 210--299)
       III  Animal and Plant Health Inspection Service, Department 
                of Agriculture (Parts 300--399)
        IV  Federal Crop Insurance Corporation, Department of 
                Agriculture (Parts 400--499)
         V  Agricultural Research Service, Department of 
                Agriculture (Parts 500--599)
        VI  Natural Resources Conservation Service, Department of 
                Agriculture (Parts 600--699)
       VII  Farm Service Agency, Department of Agriculture (Parts 
                700--799)

[[Page 365]]

      VIII  Grain Inspection, Packers and Stockyards 
                Administration (Federal Grain Inspection Service), 
                Department of Agriculture (Parts 800--899)
        IX  Agricultural Marketing Service (Marketing Agreements 
                and Orders; Fruits, Vegetables, Nuts), Department 
                of Agriculture (Parts 900--999)
         X  Agricultural Marketing Service (Marketing Agreements 
                and Orders; Milk), Department of Agriculture 
                (Parts 1000--1199)
        XI  Agricultural Marketing Service (Marketing Agreements 
                and Orders; Miscellaneous Commodities), Department 
                of Agriculture (Parts 1200--1299)
       XIV  Commodity Credit Corporation, Department of 
                Agriculture (Parts 1400--1499)
        XV  Foreign Agricultural Service, Department of 
                Agriculture (Parts 1500--1599)
       XVI  Rural Telephone Bank, Department of Agriculture (Parts 
                1600--1699)
      XVII  Rural Utilities Service, Department of Agriculture 
                (Parts 1700--1799)
     XVIII  Rural Housing Service, Rural Business-Cooperative 
                Service, Rural Utilities Service, and Farm Service 
                Agency, Department of Agriculture (Parts 1800--
                2099)
      XXVI  Office of Inspector General, Department of Agriculture 
                (Parts 2600--2699)
     XXVII  Office of Information Resources Management, Department 
                of Agriculture (Parts 2700--2799)
    XXVIII  Office of Operations, Department of Agriculture (Parts 
                2800--2899)
      XXIX  Office of Energy, Department of Agriculture (Parts 
                2900--2999)
       XXX  Office of Finance and Management, Department of 
                Agriculture (Parts 3000--3099)
      XXXI  Office of Environmental Quality, Department of 
                Agriculture (Parts 3100--3199)
     XXXII  [Reserved]
    XXXIII  Office of Transportation, Department of Agriculture 
                (Parts 3300--3399)
     XXXIV  Cooperative State Research, Education, and Extension 
                Service, Department of Agriculture (Parts 3400--
                3499)
     XXXVI  National Agricultural Statistics Service, Department 
                of Agriculture (Parts 3600--3699)
    XXXVII  Economic Research Service, Department of Agriculture 
                (Parts 3700--3799)
   XXXVIII  World Agricultural Outlook Board, Department of 
                Agriculture (Parts 3800--3899)
     XXXIX  Economic Analysis Staff, Department of Agriculture 
                (Parts 3900--3999)
        XL  Economics Management Staff, Department of Agriculture 
                (Parts 4000--4099)
       XLI  [Reserved]
      XLII  Rural Business-Cooperative Service and Rural Utilities 
                Service, Department of Agriculture (Parts 4200--
                4299)

[[Page 366]]

                    Title 8--Aliens and Nationality

         I  Immigration and Naturalization Service, Department of 
                Justice (Parts 1--499)

                 Title 9--Animals and Animal Products

         I  Animal and Plant Health Inspection Service, Department 
                of Agriculture (Parts 1--199)
        II  Grain Inspection, Packers and Stockyards 
                Administration (Packers and Stockyards Programs), 
                Department of Agriculture (Parts 200--299)
       III  Food Safety and Inspection Service, Meat and Poultry 
                Inspection, Department of Agriculture (Parts 300--
                399)

                           Title 10--Energy

         I  Nuclear Regulatory Commission (Parts 0--199)
        II  Department of Energy (Parts 200--699)
       III  Department of Energy (Parts 700--999)
         X  Department of Energy (General Provisions) (Parts 
                1000--1099)
        XI  United States Enrichment Corporation (Parts 1100--
                1199)
        XV  Office of the Federal Inspector for the Alaska Natural 
                Gas Transportation System (Parts 1500--1599)
      XVII  Defense Nuclear Facilities Safety Board (Parts 1700--
                1799)

                      Title 11--Federal Elections

         I  Federal Election Commission (Parts 1--9099)

                      Title 12--Banks and Banking

         I  Comptroller of the Currency, Department of the 
                Treasury (Parts 1--199)
        II  Federal Reserve System (Parts 200--299)
       III  Federal Deposit Insurance Corporation (Parts 300--399)
        IV  Export-Import Bank of the United States (Parts 400--
                499)
         V  Office of Thrift Supervision, Department of the 
                Treasury (Parts 500--599)
        VI  Farm Credit Administration (Parts 600--699)
       VII  National Credit Union Administration (Parts 700--799)
      VIII  Federal Financing Bank (Parts 800--899)
        IX  Federal Housing Finance Board (Parts 900--999)
        XI  Federal Financial Institutions Examination Council 
                (Parts 1100--1199)
       XIV  Farm Credit System Insurance Corporation (Parts 1400--
                1499)
        XV  Thrift Depositor Protection Oversight Board (Parts 
                1500--1599)
      XVII  Office of Federal Housing Enterprise Oversight, 
                Department of Housing and Urban Development (Parts 
                1700-1799)
     XVIII  Community Development Financial Institutions Fund, 
                Department of the Treasury (Parts 1800--1899)

[[Page 367]]

               Title 13--Business Credit and Assistance

         I  Small Business Administration (Parts 1--199)
       III  Economic Development Administration, Department of 
                Commerce (Parts 300--399)

                    Title 14--Aeronautics and Space

         I  Federal Aviation Administration, Department of 
                Transportation (Parts 1--199)
        II  Office of the Secretary, Department of Transportation 
                (Aviation Proceedings) (Parts 200--399)
       III  Commercial Space Transportation, Federal Aviation 
                Administration, Department of Transportation 
                (Parts 400--499)
         V  National Aeronautics and Space Administration (Parts 
                1200--1299)

                 Title 15--Commerce and Foreign Trade

            Subtitle A--Office of the Secretary of Commerce (Parts 
                0--29)
            Subtitle B--Regulations Relating to Commerce and 
                Foreign Trade
         I  Bureau of the Census, Department of Commerce (Parts 
                30--199)
        II  National Institute of Standards and Technology, 
                Department of Commerce (Parts 200--299)
       III  International Trade Administration, Department of 
                Commerce (Parts 300--399)
        IV  Foreign-Trade Zones Board, Department of Commerce 
                (Parts 400--499)
       VII  Bureau of Export Administration, Department of 
                Commerce (Parts 700--799)
      VIII  Bureau of Economic Analysis, Department of Commerce 
                (Parts 800--899)
        IX  National Oceanic and Atmospheric Administration, 
                Department of Commerce (Parts 900--999)
        XI  Technology Administration, Department of Commerce 
                (Parts 1100--1199)
      XIII  East-West Foreign Trade Board (Parts 1300--1399)
       XIV  Minority Business Development Agency (Parts 1400--
                1499)
            Subtitle C--Regulations Relating to Foreign Trade 
                Agreements
        XX  Office of the United States Trade Representative 
                (Parts 2000--2099)
            Subtitle D--Regulations Relating to Telecommunications 
                and Information
     XXIII  National Telecommunications and Information 
                Administration, Department of Commerce (Parts 
                2300--2399)

                    Title 16--Commercial Practices

         I  Federal Trade Commission (Parts 0--999)
        II  Consumer Product Safety Commission (Parts 1000--1799)

[[Page 368]]

             Title 17--Commodity and Securities Exchanges

         I  Commodity Futures Trading Commission (Parts 1--199)
        II  Securities and Exchange Commission (Parts 200--399)
        IV  Department of the Treasury (Parts 400--499)

          Title 18--Conservation of Power and Water Resources

         I  Federal Energy Regulatory Commission, Department of 
                Energy (Parts 1--399)
       III  Delaware River Basin Commission (Parts 400--499)
        VI  Water Resources Council (Parts 700--799)
      VIII  Susquehanna River Basin Commission (Parts 800--899)
      XIII  Tennessee Valley Authority (Parts 1300--1399)

                       Title 19--Customs Duties

         I  United States Customs Service, Department of the 
                Treasury (Parts 1--199)
        II  United States International Trade Commission (Parts 
                200--299)
       III  International Trade Administration, Department of 
                Commerce (Parts 300--399)

                     Title 20--Employees' Benefits

         I  Office of Workers' Compensation Programs, Department 
                of Labor (Parts 1--199)
        II  Railroad Retirement Board (Parts 200--399)
       III  Social Security Administration (Parts 400--499)
        IV  Employees' Compensation Appeals Board, Department of 
                Labor (Parts 500--599)
         V  Employment and Training Administration, Department of 
                Labor (Parts 600--699)
        VI  Employment Standards Administration, Department of 
                Labor (Parts 700--799)
       VII  Benefits Review Board, Department of Labor (Parts 
                800--899)
      VIII  Joint Board for the Enrollment of Actuaries (Parts 
                900--999)
        IX  Office of the Assistant Secretary for Veterans' 
                Employment and Training, Department of Labor 
                (Parts 1000--1099)

                       Title 21--Food and Drugs

         I  Food and Drug Administration, Department of Health and 
                Human Services (Parts 1--1299)
        II  Drug Enforcement Administration, Department of Justice 
                (Parts 1300--1399)
       III  Office of National Drug Control Policy (Parts 1400--
                1499)

                      Title 22--Foreign Relations

         I  Department of State (Parts 1--199)

[[Page 369]]

        II  Agency for International Development, International 
                Development Cooperation Agency (Parts 200--299)
       III  Peace Corps (Parts 300--399)
        IV  International Joint Commission, United States and 
                Canada (Parts 400--499)
         V  United States Information Agency (Parts 500--599)
        VI  United States Arms Control and Disarmament Agency 
                (Parts 600--699)
       VII  Overseas Private Investment Corporation, International 
                Development Cooperation Agency (Parts 700--799)
        IX  Foreign Service Grievance Board Regulations (Parts 
                900--999)
         X  Inter-American Foundation (Parts 1000--1099)
        XI  International Boundary and Water Commission, United 
                States and Mexico, United States Section (Parts 
                1100--1199)
       XII  United States International Development Cooperation 
                Agency (Parts 1200--1299)
      XIII  Board for International Broadcasting (Parts 1300--
                1399)
       XIV  Foreign Service Labor Relations Board; Federal Labor 
                Relations Authority; General Counsel of the 
                Federal Labor Relations Authority; and the Foreign 
                Service Impasse Disputes Panel (Parts 1400--1499)
        XV  African Development Foundation (Parts 1500--1599)
       XVI  Japan-United States Friendship Commission (Parts 
                1600--1699)
      XVII  United States Institute of Peace (Parts 1700--1799)

                          Title 23--Highways

         I  Federal Highway Administration, Department of 
                Transportation (Parts 1--999)
        II  National Highway Traffic Safety Administration and 
                Federal Highway Administration, Department of 
                Transportation (Parts 1200--1299)
       III  National Highway Traffic Safety Administration, 
                Department of Transportation (Parts 1300--1399)

                Title 24--Housing and Urban Development

            Subtitle A--Office of the Secretary, Department of 
                Housing and Urban Development (Parts 0--99)
            Subtitle B--Regulations Relating to Housing and Urban 
                Development
         I  Office of Assistant Secretary for Equal Opportunity, 
                Department of Housing and Urban Development (Parts 
                100--199)
        II  Office of Assistant Secretary for Housing-Federal 
                Housing Commissioner, Department of Housing and 
                Urban Development (Parts 200--299)
       III  Government National Mortgage Association, Department 
                of Housing and Urban Development (Parts 300--399)
         V  Office of Assistant Secretary for Community Planning 
                and Development, Department of Housing and Urban 
                Development (Parts 500--599)

[[Page 370]]

        VI  Office of Assistant Secretary for Community Planning 
                and Development, Department of Housing and Urban 
                Development (Parts 600--699) [Reserved]
       VII  Office of the Secretary, Department of Housing and 
                Urban Development (Housing Assistance Programs and 
                Public and Indian Housing Programs) (Parts 700--
                799)
      VIII  Office of the Assistant Secretary for Housing--Federal 
                Housing Commissioner, Department of Housing and 
                Urban Development (Section 8 Housing Assistance 
                Programs and Section 202 Direct Loan Program) 
                (Parts 800--899)
        IX  Office of Assistant Secretary for Public and Indian 
                Housing, Department of Housing and Urban 
                Development (Parts 900--999)
         X  Office of Assistant Secretary for Housing--Federal 
                Housing Commissioner, Department of Housing and 
                Urban Development (Interstate Land Sales 
                Registration Program) (Parts 1700--1799)
       XII  Office of Inspector General, Department of Housing and 
                Urban Development (Parts 2000--2099)
        XX  Office of Assistant Secretary for Housing--Federal 
                Housing Commissioner, Department of Housing and 
                Urban Development (Parts 3200--3699)
       XXV  Neighborhood Reinvestment Corporation (Parts 4100--
                4199)

                           Title 25--Indians

         I  Bureau of Indian Affairs, Department of the Interior 
                (Parts 1--299)
        II  Indian Arts and Crafts Board, Department of the 
                Interior (Parts 300--399)
       III  National Indian Gaming Commission, Department of the 
                Interior (Parts 500--599)
        IV  Office of Navajo and Hopi Indian Relocation (Parts 
                700--799)
         V  Bureau of Indian Affairs, Department of the Interior, 
                and Indian Health Service, Department of Health 
                and Human Services (Part 900)
        VI  Office of the Assistant Secretary-Indian Affairs, 
                Department of the Interior (Part 1001)

                      Title 26--Internal Revenue

         I  Internal Revenue Service, Department of the Treasury 
                (Parts 1--799)

           Title 27--Alcohol, Tobacco Products and Firearms

         I  Bureau of Alcohol, Tobacco and Firearms, Department of 
                the Treasury (Parts 1--299)

                   Title 28--Judicial Administration

         I  Department of Justice (Parts 0--199)
       III  Federal Prison Industries, Inc., Department of Justice 
                (Parts 300--399)

[[Page 371]]

         V  Bureau of Prisons, Department of Justice (Parts 500--
                599)
        VI  Offices of Independent Counsel, Department of Justice 
                (Parts 600--699)
       VII  Office of Independent Counsel (Parts 700--799)

                            Title 29--Labor

            Subtitle A--Office of the Secretary of Labor (Parts 
                0--99)
            Subtitle B--Regulations Relating to Labor
         I  National Labor Relations Board (Parts 100--199)
        II  Office of Labor-Management Programs, Department of 
                Labor (Parts 200--299)
       III  National Railroad Adjustment Board (Parts 300--399)
        IV  Office of Labor-Management Standards, Department of 
                Labor (Parts 400--499)
         V  Wage and Hour Division, Department of Labor (Parts 
                500--899)
        IX  Construction Industry Collective Bargaining Commission 
                (Parts 900--999)
         X  National Mediation Board (Parts 1200--1299)
       XII  Federal Mediation and Conciliation Service (Parts 
                1400--1499)
       XIV  Equal Employment Opportunity Commission (Parts 1600--
                1699)
      XVII  Occupational Safety and Health Administration, 
                Department of Labor (Parts 1900--1999)
        XX  Occupational Safety and Health Review Commission 
                (Parts 2200--2499)
       XXV  Pension and Welfare Benefits Administration, 
                Department of Labor (Parts 2500--2599)
     XXVII  Federal Mine Safety and Health Review Commission 
                (Parts 2700--2799)
        XL  Pension Benefit Guaranty Corporation (Parts 4000--
                4999)

                      Title 30--Mineral Resources

         I  Mine Safety and Health Administration, Department of 
                Labor (Parts 1--199)
        II  Minerals Management Service, Department of the 
                Interior (Parts 200--299)
       III  Board of Surface Mining and Reclamation Appeals, 
                Department of the Interior (Parts 300--399)
        IV  Geological Survey, Department of the Interior (Parts 
                400--499)
        VI  Bureau of Mines, Department of the Interior (Parts 
                600--699)
       VII  Office of Surface Mining Reclamation and Enforcement, 
                Department of the Interior (Parts 700--999)

                 Title 31--Money and Finance: Treasury

            Subtitle A--Office of the Secretary of the Treasury 
                (Parts 0--50)
            Subtitle B--Regulations Relating to Money and Finance
         I  Monetary Offices, Department of the Treasury (Parts 
                51--199)

[[Page 372]]

        II  Fiscal Service, Department of the Treasury (Parts 
                200--399)
        IV  Secret Service, Department of the Treasury (Parts 
                400--499)
         V  Office of Foreign Assets Control, Department of the 
                Treasury (Parts 500--599)
        VI  Bureau of Engraving and Printing, Department of the 
                Treasury (Parts 600--699)
       VII  Federal Law Enforcement Training Center, Department of 
                the Treasury (Parts 700--799)
      VIII  Office of International Investment, Department of the 
                Treasury (Parts 800--899)

                      Title 32--National Defense

            Subtitle A--Department of Defense
         I  Office of the Secretary of Defense (Parts 1--399)
         V  Department of the Army (Parts 400--699)
        VI  Department of the Navy (Parts 700--799)
       VII  Department of the Air Force (Parts 800--1099)
            Subtitle B--Other Regulations Relating to National 
                Defense
       XII  Defense Logistics Agency (Parts 1200--1299)
       XVI  Selective Service System (Parts 1600--1699)
       XIX  Central Intelligence Agency (Parts 1900--1999)
        XX  Information Security Oversight Office, National 
                Archives and Records Administration (Parts 2000--
                2099)
       XXI  National Security Council (Parts 2100--2199)
      XXIV  Office of Science and Technology Policy (Parts 2400--
                2499)
     XXVII  Office for Micronesian Status Negotiations (Parts 
                2700--2799)
    XXVIII  Office of the Vice President of the United States 
                (Parts 2800--2899)
      XXIX  Presidential Commission on the Assignment of Women in 
                the Armed Forces (Part 2900)

               Title 33--Navigation and Navigable Waters

         I  Coast Guard, Department of Transportation (Parts 1--
                199)
        II  Corps of Engineers, Department of the Army (Parts 
                200--399)
        IV  Saint Lawrence Seaway Development Corporation, 
                Department of Transportation (Parts 400--499)

                          Title 34--Education

            Subtitle A--Office of the Secretary, Department of 
                Education (Parts 1--99)
            Subtitle B--Regulations of the Offices of the 
                Department of Education
         I  Office for Civil Rights, Department of Education 
                (Parts 100--199)
        II  Office of Elementary and Secondary Education, 
                Department of Education (Parts 200--299)

[[Page 373]]

       III  Office of Special Education and Rehabilitative 
                Services, Department of Education (Parts 300--399)
        IV  Office of Vocational and Adult Education, Department 
                of Education (Parts 400--499)
         V  Office of Bilingual Education and Minority Languages 
                Affairs, Department of Education (Parts 500--599)
        VI  Office of Postsecondary Education, Department of 
                Education (Parts 600--699)
       VII  Office of Educational Research and Improvement, 
                Department of Education (Parts 700--799)
        XI  National Institute for Literacy (Parts 1100-1199)
            Subtitle C--Regulations Relating to Education
       XII  National Council on Disability (Parts 1200--1299)

                        Title 35--Panama Canal

         I  Panama Canal Regulations (Parts 1--299)

             Title 36--Parks, Forests, and Public Property

         I  National Park Service, Department of the Interior 
                (Parts 1--199)
        II  Forest Service, Department of Agriculture (Parts 200--
                299)
       III  Corps of Engineers, Department of the Army (Parts 
                300--399)
        IV  American Battle Monuments Commission (Parts 400--499)
         V  Smithsonian Institution (Parts 500--599)
       VII  Library of Congress (Parts 700--799)
      VIII  Advisory Council on Historic Preservation (Parts 800--
                899)
        IX  Pennsylvania Avenue Development Corporation (Parts 
                900--999)
        XI  Architectural and Transportation Barriers Compliance 
                Board (Parts 1100--1199)
       XII  National Archives and Records Administration (Parts 
                1200--1299)
       XIV  Assassination Records Review Board (Parts 1400-1499)

             Title 37--Patents, Trademarks, and Copyrights

         I  Patent and Trademark Office, Department of Commerce 
                (Parts 1--199)
        II  Copyright Office, Library of Congress (Parts 200--299)
        IV  Assistant Secretary for Technology Policy, Department 
                of Commerce (Parts 400--499)
         V  Under Secretary for Technology, Department of Commerce 
                (Parts 500--599)

           Title 38--Pensions, Bonuses, and Veterans' Relief

         I  Department of Veterans Affairs (Parts 0--99)

[[Page 374]]

                       Title 39--Postal Service

         I  United States Postal Service (Parts 1--999)
       III  Postal Rate Commission (Parts 3000--3099)

                  Title 40--Protection of Environment

         I  Environmental Protection Agency (Parts 1--799)
         V  Council on Environmental Quality (Parts 1500--1599)

          Title 41--Public Contracts and Property Management

            Subtitle B--Other Provisions Relating to Public 
                Contracts
        50  Public Contracts, Department of Labor (Parts 50-1--50-
                999)
        51  Committee for Purchase From People Who Are Blind or 
                Severely Disabled (Parts 51-1--51-99)
        60  Office of Federal Contract Compliance Programs, Equal 
                Employment Opportunity, Department of Labor (Parts 
                60-1--60-999)
        61  Office of the Assistant Secretary for Veterans 
                Employment and Training, Department of Labor 
                (Parts 61-1--61-999)
            Subtitle C--Federal Property Management Regulations 
                System
       101  Federal Property Management Regulations (Parts 101-1--
                101-99)
       105  General Services Administration (Parts 105-1--105-999)
       109  Department of Energy Property Management Regulations 
                (Parts 109-1--109-99)
       114  Department of the Interior (Parts 114-1--114-99)
       115  Environmental Protection Agency (Parts 115-1--115-99)
       128  Department of Justice (Parts 128-1--128-99)
            Subtitle D--Other Provisions Relating to Property 
                Management [Reserved]
            Subtitle E--Federal Information Resources Management 
                Regulations System
       201  Federal Information Resources Management Regulation 
                (Parts 201-1--201-99) [Reserved]
            Subtitle F--Federal Travel Regulation System
       301  Travel Allowances (Parts 301-1--301-99)
       302  Relocation Allowances (Parts 302-1--302-99)
       303  Payment of Expenses Connected with the Death of 
                Certain Employees (Parts 303-1--303-2)
       304  Payment from a Non-Federal Source for Travel Expenses 
                (Parts 304-1--304-99)

                        Title 42--Public Health

         I  Public Health Service, Department of Health and Human 
                Services (Parts 1--199)
        IV  Health Care Financing Administration, Department of 
                Health and Human Services (Parts 400--499)
         V  Office of Inspector General-Health Care, Department of 
                Health and Human Services (Parts 1000--1999)

[[Page 375]]

                   Title 43--Public Lands: Interior

            Subtitle A--Office of the Secretary of the Interior 
                (Parts 1--199)
            Subtitle B--Regulations Relating to Public Lands
         I  Bureau of Reclamation, Department of the Interior 
                (Parts 200--499)
        II  Bureau of Land Management, Department of the Interior 
                (Parts 1000--9999)
       III  Utah Reclamation Mitigation and Conservation 
                Commission (Parts 10000--10005)

             Title 44--Emergency Management and Assistance

         I  Federal Emergency Management Agency (Parts 0--399)
        IV  Department of Commerce and Department of 
                Transportation (Parts 400--499)

                       Title 45--Public Welfare

            Subtitle A--Department of Health and Human Services, 
                General Administration (Parts 1--199)
            Subtitle B--Regulations Relating to Public Welfare
        II  Office of Family Assistance (Assistance Programs), 
                Administration for Children and Families, 
                Department of Health and Human Services (Parts 
                200--299)
       III  Office of Child Support Enforcement (Child Support 
                Enforcement Program), Administration for Children 
                and Families, Department of Health and Human 
                Services (Parts 300--399)
        IV  Office of Refugee Resettlement, Administration for 
                Children and Families Department of Health and 
                Human Services (Parts 400--499)
         V  Foreign Claims Settlement Commission of the United 
                States, Department of Justice (Parts 500--599)
        VI  National Science Foundation (Parts 600--699)
       VII  Commission on Civil Rights (Parts 700--799)
      VIII  Office of Personnel Management (Parts 800--899)
         X  Office of Community Services, Administration for 
                Children and Families, Department of Health and 
                Human Services (Parts 1000--1099)
        XI  National Foundation on the Arts and the Humanities 
                (Parts 1100--1199)
       XII  ACTION (Parts 1200--1299)
      XIII  Office of Human Development Services, Department of 
                Health and Human Services (Parts 1300--1399)
       XVI  Legal Services Corporation (Parts 1600--1699)
      XVII  National Commission on Libraries and Information 
                Science (Parts 1700--1799)
     XVIII  Harry S. Truman Scholarship Foundation (Parts 1800--
                1899)
       XXI  Commission on Fine Arts (Parts 2100--2199)
      XXII  Christopher Columbus Quincentenary Jubilee Commission 
                (Parts 2200--2299)
     XXIII  Arctic Research Commission (Part 2301)

[[Page 376]]

      XXIV  James Madison Memorial Fellowship Foundation (Parts 
                2400--2499)
       XXV  Corporation for National and Community Service (Parts 
                2500--2599)

                          Title 46--Shipping

         I  Coast Guard, Department of Transportation (Parts 1--
                199)
        II  Maritime Administration, Department of Transportation 
                (Parts 200--399)
       III  Saint Lawrence Seaway Development Corporation (Great 
                Lakes Pilotage), Department of Transportation 
                (Parts 400--499)
        IV  Federal Maritime Commission (Parts 500--599)

                      Title 47--Telecommunication

         I  Federal Communications Commission (Parts 0--199)
        II  Office of Science and Technology Policy and National 
                Security Council (Parts 200--299)
       III  National Telecommunications and Information 
                Administration, Department of Commerce (Parts 
                300--399)

           Title 48--Federal Acquisition Regulations System

         1  Federal Acquisition Regulation (Parts 1--99)
         2  Department of Defense (Parts 200--299)
         3  Department of Health and Human Services (Parts 300--
                399)
         4  Department of Agriculture (Parts 400--499)
         5  General Services Administration (Parts 500--599)
         6  Department of State (Parts 600--699)
         7  Agency for International Development (Parts 700--799)
         8  Department of Veterans Affairs (Parts 800--899)
         9  Department of Energy (Parts 900--999)
        10  Department of the Treasury (Parts 1000--1099)
        12  Department of Transportation (Parts 1200--1299)
        13  Department of Commerce (Parts 1300--1399)
        14  Department of the Interior (Parts 1400--1499)
        15  Environmental Protection Agency (Parts 1500--1599)
        16  Office of Personnel Management Federal Employees 
                Health Benefits Acquisition Regulation (Parts 
                1600--1699)
        17  Office of Personnel Management (Parts 1700--1799)
        18  National Aeronautics and Space Administration (Parts 
                1800--1899)
        19  United States Information Agency (Parts 1900--1999)
        20  Nuclear Regulatory Commission (Parts 2000--2099)
        21  Office of Personnel Management, Federal Employees 
                Group Life Insurance Federal Acquisition 
                Regulation (Parts 2100--2199)
        23  Social Security Administration (Parts 2300--2399)

[[Page 377]]

        24  Department of Housing and Urban Development (Parts 
                2400--2499)
        25  National Science Foundation (Parts 2500--2599)
        28  Department of Justice (Parts 2800--2899)
        29  Department of Labor (Parts 2900--2999)
        34  Department of Education Acquisition Regulation (Parts 
                3400--3499)
        35  Panama Canal Commission (Parts 3500--3599)
        44  Federal Emergency Management Agency (Parts 4400--4499)
        51  Department of the Army Acquisition Regulations (Parts 
                5100--5199)
        52  Department of the Navy Acquisition Regulations (Parts 
                5200--5299)
        53  Department of the Air Force Federal Acquisition 
                Regulation Supplement (Parts 5300--5399)
        54  Defense Logistics Agency, Department of Defense (Part 
                5452)
        57  African Development Foundation (Parts 5700--5799)
        61  General Services Administration Board of Contract 
                Appeals (Parts 6100--6199)
        63  Department of Transportation Board of Contract Appeals 
                (Parts 6300--6399)
        99  Cost Accounting Standards Board, Office of Federal 
                Procurement Policy, Office of Management and 
                Budget (Parts 9900--9999)

                       Title 49--Transportation

            Subtitle A--Office of the Secretary of Transportation 
                (Parts 1--99)
            Subtitle B--Other Regulations Relating to 
                Transportation
         I  Research and Special Programs Administration, 
                Department of Transportation (Parts 100--199)
        II  Federal Railroad Administration, Department of 
                Transportation (Parts 200--299)
       III  Federal Highway Administration, Department of 
                Transportation (Parts 300--399)
        IV  Coast Guard, Department of Transportation (Parts 400--
                499)
         V  National Highway Traffic Safety Administration, 
                Department of Transportation (Parts 500--599)
        VI  Federal Transit Administration, Department of 
                Transportation (Parts 600--699)
       VII  National Railroad Passenger Corporation (AMTRAK) 
                (Parts 700--799)
      VIII  National Transportation Safety Board (Parts 800--999)
         X  Surface Transportation Board, Department of 
                Transportation (Parts 1000--1399)

[[Page 378]]

                   Title 50--Wildlife and Fisheries

         I  United States Fish and Wildlife Service, Department of 
                the Interior (Parts 1--199)
        II  National Marine Fisheries Service, National Oceanic 
                and Atmospheric Administration, Department of 
                Commerce (Parts 200--299)
       III  International Regulatory Agencies (Fishing and 
                Whaling) (Parts 300--399)
        IV  Joint Regulations (United States Fish and Wildlife 
                Service, Department of the Interior and National 
                Marine Fisheries Service, National Oceanic and 
                Atmospheric Administration, Department of 
                Commerce); Endangered Species Committee 
                Regulations (Parts 400--499)
         V  Marine Mammal Commission (Parts 500--599)
        VI  Fishery Conservation and Management, National Oceanic 
                and Atmospheric Administration, Department of 
                Commerce (Parts 600--699)

                      CFR Index and Finding Aids

            Subject/Agency Index
            List of Agency Prepared Indexes
            Parallel Tables of Statutory Authorities and Rules
            Acts Requiring Publication in the Federal Register
            List of CFR Titles, Chapters, Subchapters, and Parts
            Alphabetical List of Agencies Appearing in the CFR



[[Page 379]]





           Alphabetical List of Agencies Appearing in the CFR




                   (Revised as of September 30, 1996)

                                                  CFR Title, Subtitle or
                     Agency                               Chapter

ACTION                                            45, XII
Administrative Committee of the Federal Register  1, I
Advanced Research Projects Agency                 32, I
Advisory Commission on Intergovernmental          5, VII
     Relations
Advisory Committee on Federal Pay                 5, IV
Advisory Council on Historic Preservation         36, VIII
African Development Foundation                    22, XV
  Federal Acquisition Regulation                  48, 57
Agency for International Development              22, II
  Federal Acquisition Regulation                  48, 7
Agricultural Marketing Service                    7, I, IX, X, XI
Agricultural Research Service                     7, V
Agriculture Department
  Agricultural Marketing Service                  7, I, IX, X, XI
  Agricultural Research Service                   7, V
  Animal and Plant Health Inspection Service      7, III; 9, I
  Commodity Credit Corporation                    7, XIV
  Cooperative State Research, Education, and      7, XXXIV
       Extension Service
  Economic Analysis Staff                         7, XXXIX
  Economic Research Service                       7, XXXVII
  Economics Management Staff                      7, XL
  Energy, Office of                               7, XXIX
  Environmental Quality, Office of                7, XXXI
  Farm Service Agency                             7, VII, XVIII
  Federal Acquisition Regulation                  48, 4
  Federal Crop Insurance Corporation              7, IV
  Finance and Management, Office of               7, XXX
  Food and Consumer Service                       7, II
  Food Safety and Inspection Service              9, III
  Foreign Agricultural Service                    7, XV
  Forest Service                                  36, II
  Grain Inspection, Packers and Stockyards        7, VIII; 9, II
       Administration
  Information Resources Management, Office of     7, XXVII
  Inspector General, Office of                    7, XXVI
  National Agricultural Library                   7, XLI
  National Agricultural Statistics Service        7, XXXVI
  Natural Resources Conservation Service          7, VI
  Operations, Office of                           7, XXVIII
  Rural Business-Cooperative Service              7, XVIII, XLII
  Rural Development Administration                7, XLII
  Rural Housing Service                           7, XVIII
  Rural Telephone Bank                            7, XVI
  Rural Utilities Service                         7, XVII, XVIII, XLII
  Secretary of Agriculture, Office of             7, Subtitle A
  Transportation, Office of                       7, XXXIII
  World Agricultural Outlook Board                7, XXXVIII
Air Force Department                              32, VII
  Federal Acquisition Regulation Supplement       48, 53
Alaska Natural Gas Transportation System, Office  10, XV
     of the Federal Inspector
Alcohol, Tobacco and Firearms, Bureau of          27, I
AMTRAK                                            49, VII

[[Page 380]]

American Battle Monuments Commission              36, IV
Animal and Plant Health Inspection Service        7, III; 9, I
Appalachian Regional Commission                   5, IX
Architectural and Transportation Barriers         36, XI
     Compliance Board
Arctic Research Commission                        45, XXIII
Arms Control and Disarmament Agency, United       22, VI
     States
Army Department                                   32, V
  Engineers, Corps of                             33, II; 36, III
  Federal Acquisition Regulation                  48, 51
Assassination Records Review Board                36, XIV
Benefits Review Board                             20, VII
Bilingual Education and Minority Languages        34, V
     Affairs, Office of
Blind or Severely Disabled, Committee for         41, 51
     Purchase From People Who Are
Board for International Broadcasting              22, XIII
Census Bureau                                     15, I
Central Intelligence Agency                       32, XIX
Child Support Enforcement, Office of              45, III
Children and Families, Administration for         45, II, III, IV, X
Christopher Columbus Quincentenary Jubilee        45, XXII
     Commission
Civil Rights, Commission on                       45, VII
Civil Rights, Office for                          34, I
Coast Guard                                       33, I; 46, I; 49, IV
Commerce Department                               44, IV
  Census Bureau                                   15, I`
  Economic Affairs, Under Secretary               37, V
  Economic Analysis, Bureau of                    15, VIII
  Economic Development Administration             13, III
  Emergency Management and Assistance             44, IV
  Export Administration, Bureau of                15, VII
  Federal Acquisition Regulation                  48, 13
  Fishery Conservation and Management             50, VI
  Foreign-Trade Zones Board                       15, IV
  International Trade Administration              15, III; 19, III
  National Institute of Standards and Technology  15, II
  National Marine Fisheries Service               50, II, IV
  National Oceanic and Atmospheric                15, IX; 50, II, III, IV, 
       Administration                             VI
  National Telecommunications and Information     15, XXIII; 47, III
       Administration
  National Weather Service                        15, IX
  Patent and Trademark Office                     37, I
  Productivity, Technology and Innovation,        37, IV
       Assistant Secretary for
  Secretary of Commerce, Office of                15, Subtitle A
  Technology, Under Secretary for                 37, V
  Technology Administration                       15, XI
  Technology Policy, Assistant Secretary for      37, IV
Commercial Space Transportation                   14, III
Commodity Credit Corporation                      7, XIV
Commodity Futures Trading Commission              5, XLI; 17, I
Community Planning and Development, Office of     24, V, VI
     Assistant Secretary for
Community Services, Office of                     45, X
Comptroller of the Currency                       12, I
Construction Industry Collective Bargaining       29, IX
     Commission
Consumer Product Safety Commission                16, II
Cooperative State Research, Education, and        7, XXXIV
     Extension Service
Copyright Office                                  37, II
Cost Accounting Standards Board                   48, 99
Council on Environmental Quality                  40, V
Customs Service, United States                    19, I
Defense Contract Audit Agency                     32, I
Defense Department                                5, XXVI; 32, Subtitle A
  Advanced Research Projects Agency               32, I
  Air Force Department                            32, VII
  Army Department                                 32, V; 33, II; 36, III, 
                                                  48, 51

[[Page 381]]

  Defense Intelligence Agency                     32, I
  Defense Logistics Agency                        32, I, XII; 48, 54
  Defense Mapping Agency                          32, I
  Engineers, Corps of                             33, II; 36, III
  Federal Acquisition Regulation                  48, 2
  Navy Department                                 32, VI; 48, 52
  Secretary of Defense, Office of                 32, I
Defense Contract Audit Agency                     32, I
Defense Intelligence Agency                       32, I
Defense Logistics Agency                          32, XII; 48, 54
Defense Mapping Agency                            32, I
Defense Nuclear Facilities Safety Board           10, XVII
Delaware River Basin Commission                   18, III
Drug Enforcement Administration                   21, II
East-West Foreign Trade Board                     15, XIII
Economic Affairs, Under Secretary                 37, V
Economic Analysis, Bureau of                      15, VIII
Economic Analysis Staff                           7, XXXIX
Economic Development Administration               13, III
Economics Management Staff                        7, XL
Economic Research Service                         7, XXXVII
Education, Department of                          5, LIII
  Bilingual Education and Minority Languages      34, V
       Affairs, Office of
  Civil Rights, Office for                        34, I
  Educational Research and Improvement, Office    34, VII
       of
  Elementary and Secondary Education, Office of   34, II
  Federal Acquisition Regulation                  48, 34
  Postsecondary Education, Office of              34, VI
  Secretary of Education, Office of               34, Subtitle A
  Special Education and Rehabilitative Services,  34, III
       Office of
  Vocational and Adult Education, Office of       34, IV
Educational Research and Improvement, Office of   34, VII
Elementary and Secondary Education, Office of     34, II
Employees' Compensation Appeals Board             20, IV
Employees Loyalty Board                           5, V
Employment and Training Administration            20, V
Employment Standards Administration               20, VI
Endangered Species Committee                      50, IV
Energy, Department of                             5, XXIII; 10, II, III, X
  Federal Acquisition Regulation                  48, 9
  Federal Energy Regulatory Commission            5, XXIV; 18, I
  Property Management Regulations                 41, 109
Energy, Office of                                 7, XXIX
Engineers, Corps of                               33, II; 36, III
Engraving and Printing, Bureau of                 31, VI
Enrichment Corporation, United States             10, XI
Environmental Protection Agency                   5, LIV; 40, I
  Federal Acquisition Regulation                  48, 15
  Property Management Regulations                 41, 115
Environmental Quality, Office of                  7, XXXI
Equal Employment Opportunity Commission           5, LXII; 29, XIV
Equal Opportunity, Office of Assistant Secretary  24, I
     for
Executive Office of the President                 3, I
  Administration, Office of                       5, XV
  Environmental Quality, Council on               40, V
  Management and Budget, Office of                25, III, LXXVII; 48, 99
  National Drug Control Policy, Office of         21, III
  National Security Council                       32, XXI; 47, 2
  Presidential Documents                          3
  Science and Technology Policy, Office of        32, XXIV; 47, II
  Trade Representative, Office of the United      15, XX
       States
Export Administration, Bureau of                  15, VII
Export-Import Bank of the United States           5, LII; 12, IV
Family Assistance, Office of                      45, II
Farm Credit Administration                        5, XXXI; 12, VI
Farm Credit System Insurance Corporation          5, XXX; 12, XIV

[[Page 382]]

Farm Service Agency                               7, VII, XVIII
Farmers Home Administration                       7, XVIII
Federal Acquisition Regulation                    48, 1
Federal Aviation Administration                   14, I
  Commercial Space Transportation                 14, III
Federal Claims Collection Standards               4, II
Federal Communications Commission                 47, I
Federal Contract Compliance Programs, Office of   41, 60
Federal Crop Insurance Corporation                7, IV
Federal Deposit Insurance Corporation             5, XXII; 12, III
Federal Election Commission                       11, I
Federal Emergency Management Agency               44, I
  Federal Acquisition Regulation                  48, 44
Federal Employees Group Life Insurance Federal    48, 21
     Acquisition Regulation
Federal Employees Health Benefits Acquisition     48, 16
     Regulation
Federal Energy Regulatory Commission              5, XXIV; 18, I
Federal Financial Institutions Examination        12, XI
     Council
Federal Financing Bank                            12, VIII
Federal Highway Administration                    23, I, II; 49, III
Federal Home Loan Mortgage Corporation            1, IV
Federal Housing Enterprise Oversight Office       12, XVII
Federal Housing Finance Board                     12, IX
Federal Inspector for the Alaska Natural Gas      10, XV
     Transportation System, Office of
Federal Labor Relations Authority, and General    5, XIV; 22, XIV
     Counsel of the Federal Labor Relations 
     Authority
Federal Law Enforcement Training Center           31, VII
Federal Maritime Commission                       46, IV
Federal Mediation and Conciliation Service        29, XII
Federal Mine Safety and Health Review Commission  5, LXXIV; 29, XXVII
Federal Pay, Advisory Committee on                5, IV
Federal Prison Industries, Inc.                   28, III
Federal Procurement Policy Office                 48, 99
Federal Property Management Regulations           41, 101
Federal Property Management Regulations System    41, Subtitle C
Federal Railroad Administration                   49, II
Federal Register, Administrative Committee of     1, I
Federal Register, Office of                       1, II
Federal Reserve System                            12, II
Federal Retirement Thrift Investment Board        5, VI, LXXVI
Federal Service Impasses Panel                    5, XIV
Federal Trade Commission                          5, XLVII; 16, I
Federal Transit Administration                    49, VI
Federal Travel Regulation System                  41, Subtitle F
Finance and Management, Office of                 7, XXX
Fine Arts, Commission on                          45, XXI
Fiscal Service                                    31, II
Fish and Wildlife Service, United States          50, I, IV
Fishery Conservation and Management               50, VI
Fishing and Whaling, International Regulatory     50, III
     Agencies
Food and Drug Administration                      21, I
Food and Consumer Service                         7, II
Food Safety and Inspection Service                9, III
Foreign Agricultural Service                      7, XV
Foreign Assets Control, Office of                 31, V
Foreign Claims Settlement Commission of the       45, V
     United States
Foreign Service Grievance Board                   22, IX
Foreign Service Impasse Disputes Panel            22, XIV
Foreign Service Labor Relations Board             22, XIV
Foreign-Trade Zones Board                         15, IV
Forest Service                                    36, II
General Accounting Office                         4, I, II
General Services Administration
  Contract Appeals, Board of                      48, 61
  Federal Acquisition Regulation                  48, 5
  Federal Property Management Regulations System  41, 101, 105

[[Page 383]]

  Federal Travel Regulation System                41, Subtitle F
  Payment From a Non-Federal Source for Travel    41, 304
       Expenses
  Payment of Expenses Connected With the Death    41, 303
       of Certain Employees
  Relocation Allowances                           41, 302
  Travel Allowances                               41, 301
Geological Survey                                 30, IV
Government Ethics, Office of                      5, XVI
Government National Mortgage Association          24, III
Grain Inspection, Packers and Stockyards          7, VIII; 9, II
     Administration
Great Lakes Pilotage                              46, III
Harry S. Truman Scholarship Foundation            45, XVIII
Health and Human Services, Department of          5, XLV; 45, Subtitle A
  Child Support Enforcement, Office of            45, III
  Children and Families, Administration for       45, II, III, IV, X
  Community Services, Office of                   45, X
  Family Assistance, Office of                    45, II
  Federal Acquisition Regulation                  48, 3
  Food and Drug Administration                    21, I
  Health Care Financing Administration            42, IV
  Human Development Services, Office of           45, XIII
  Indian Health Service                           25, V
  Inspector General (Health Care), Office of      42, V
  Public Health Service                           42, I
  Refugee Resettlement, Office of                 45, IV
Health Care Financing Administration              42, IV
Housing and Urban Development, Department of      5, LXV; 24, Subtitle B
  Community Planning and Development, Office of   24, V, VI
       Assistant Secretary for
  Equal Opportunity, Office of Assistant          24, I
       Secretary for
  Federal Acquisition Regulation                  48, 24
  Federal Housing Enterprise Oversight, Office    12, XVII
       of
  Government National Mortgage Association        24, III
  Housing--Federal Housing Commissioner, Office   24, II, VIII, X, XX
       of Assistant Secretary for
  Inspector General, Office of                    24, XII
  Public and Indian Housing, Office of Assistant  24, IX
       Secretary for
  Secretary, Office of                            24, Subtitle A, VII
Housing--Federal Housing Commissioner, Office of  24, II, VIII, X, XX
     Assistant Secretary for
Human Development Services, Office of             45, XIII
Immigration and Naturalization Service            8, I
Independent Counsel, Office of                    28, VII
Indian Affairs, Bureau of                         25, I, V
Indian Affairs, Office of the Assistant           25, VI
     Secretary
Indian Arts and Crafts Board                      25, II
Indian Health Service                             25, V
Information Agency, United States                 22, V
  Federal Acquisition Regulation                  48, 19
Information Resources Management, Office of       7, XXVII
Information Security Oversight Office, National   32, XX
     Archives and Records Administration
Inspector General
  Agriculture Department                          7, XXVI
  Health and Human Services Department            42, V
  Housing and Urban Development Department        24, XII
Institute of Peace, United States                 22, XVII
Inter-American Foundation                         5, LXIII; 22, X
Intergovernmental Relations, Advisory Commission  5, VII
     on
Interior Department
  Endangered Species Committee                    50, IV
  Federal Acquisition Regulation                  48, 14
  Federal Property Management Regulations System  41, 114
  Fish and Wildlife Service, United States        50, I, IV
  Geological Survey                               30, IV
  Indian Affairs, Bureau of                       25, I, V
  Indian Affairs, Office of the Assistant         25, VI
     Secretary
[[Page 384]]

  Indian Arts and Crafts Board                    25, II
  Land Management, Bureau of                      43, II
  Minerals Management Service                     30, II
  Mines, Bureau of                                30, VI
  National Indian Gaming Commission               25, III
  National Park Service                           36, I
  Reclamation, Bureau of                          43, I
  Secretary of the Interior, Office of            43, Subtitle A
  Surface Mining and Reclamation Appeals, Board   30, III
       of
  Surface Mining Reclamation and Enforcement,     30, VII
       Office of
Internal Revenue Service                          26, I
International Boundary and Water Commission,      22, XI
     United States and Mexico, United States 
     Section
International Development, Agency for             22, II
  Federal Acquisition Regulation                  48, 7
International Development Cooperation Agency,     22, XII
     United States
  International Development, Agency for           22, II; 48, 7
  Overseas Private Investment Corporation         5, XXXIII; 22, VII
International Investment, Office of               31, VIII
International Joint Commission, United States     22, IV
     and Canada
International Organizations Employees Loyalty     5, V
     Board
International Regulatory Agencies (Fishing and    50, III
     Whaling)
International Trade Administration                15, III; 19, III
International Trade Commission, United States     19, II
Interstate Commerce Commission                    5, XL
James Madison Memorial Fellowship Foundation      45, XXIV
Japan-United States Friendship Commission         22, XVI
Joint Board for the Enrollment of Actuaries       20, VIII
Justice Department                                28, I
  Drug Enforcement Administration                 21, II
  Federal Acquisition Regulation                  48, 28
  Federal Claims Collection Standards             4, II
  Federal Prison Industries, Inc.                 28, III
  Foreign Claims Settlement Commission of the     45, V
       United States
  Immigration and Naturalization Service          8, I
  Offices of Independent Counsel                  28, VI
  Prisons, Bureau of                              28, V
  Property Management Regulations                 41, 128
Labor Department
  Benefits Review Board                           20, VII
  Employees' Compensation Appeals Board           20, IV
  Employment and Training Administration          20, V
  Employment Standards Administration             20, VI
  Federal Acquisition Regulation                  48, 29
  Federal Contract Compliance Programs, Office    41, 60
       of
  Federal Procurement Regulations System          41, 50
  Labor-Management Relations and Cooperative      29, II
       Programs, Bureau of
  Labor-Management Programs, Office of            29, IV
  Mine Safety and Health Administration           30, I
  Occupational Safety and Health Administration   29, XVII
  Pension and Welfare Benefits Administration     29, XXV
  Public Contracts                                41, 50
  Secretary of Labor, Office of                   29, Subtitle A
  Veterans' Employment and Training, Office of    41, 61; 20, IX
       the Assistant Secretary for
  Wage and Hour Division                          29, V
  Workers' Compensation Programs, Office of       20, I
Labor-Management Relations and Cooperative        29, II
     Programs, Bureau of
Labor-Management Programs, Office of              29, IV
Land Management, Bureau of                        43, II
Legal Services Corporation                        45, XVI
Library of Congress                               36, VII
  Copyright Office                                37, II

[[Page 385]]

Management and Budget, Office of                  5, III, LXXVII; 48, 99
Marine Mammal Commission                          50, V
Maritime Administration                           46, II
Merit Systems Protection Board                    5, II
Micronesian Status Negotiations, Office for       32, XXVII
Mine Safety and Health Administration             30, I
Minerals Management Service                       30, II
Mines, Bureau of                                  30, VI
Minority Business Development Agency              15, XIV
Miscellaneous Agencies                            1, IV
Monetary Offices                                  31, I
National Aeronautics and Space Administration     5, LIX; 14, V
  Federal Acquisition Regulation                  48, 18
National Agricultural Library                     7, XLI
National Agricultural Statistics Service          7, XXXVI
National Archives and Records Administration      5, LXVI; 36, XII
  Information Security Oversight Office           32, XX
National Bureau of Standards                      15, II
National Capital Planning Commission              1, IV
National Commission for Employment Policy         1, IV
National Commission on Libraries and Information  45, XVII
     Science
National and Community Service, Corporation for   45, XXV
National Council on Disability                    34, XII
National Credit Union Administration              12, VII
National Drug Control Policy, Office of           21, III
National Foundation on the Arts and the           45, XI
     Humanities
National Highway Traffic Safety Administration    23, II, III; 49, V
National Indian Gaming Commission                 25, III
National Institute for Literacy                   34, XI
National Institute of Standards and Technology    15, II
National Labor Relations Board                    29, I
National Marine Fisheries Service                 50, II, IV
National Mediation Board                          29, X
National Oceanic and Atmospheric Administration   15, IX; 50, II, III, IV, 
                                                  VI
National Park Service                             36, I
National Railroad Adjustment Board                29, III
National Railroad Passenger Corporation (AMTRAK)  49, VII
National Science Foundation                       45, VI
  Federal Acquisition Regulation                  48, 25
National Security Council                         32, XXI
National Security Council and Office of Science   47, II
     and Technology Policy
National Telecommunications and Information       15, XXIII; 47, III
     Administration
National Transportation Safety Board              49, VIII
National Weather Service                          15, IX
Natural Resources Conservation Service            7, VI
Navajo and Hopi Indian Relocation, Office of      25, IV
Navy Department                                   32, VI
  Federal Acquisition Regulation                  48, 52
Neighborhood Reinvestment Corporation             24, XXV
Nuclear Regulatory Commission                     5, XLVIII; 10, I
  Federal Acquisition Regulation                  48, 20
Occupational Safety and Health Administration     29, XVII
Occupational Safety and Health Review Commission  29, XX
Offices of Independent Counsel                    28, VI
Operations Office                                 7, XXVIII
Overseas Private Investment Corporation           5, XXXIII; 22, VII
Panama Canal Commission                           48, 35
Panama Canal Regulations                          35, I
Patent and Trademark Office                       37, I
Payment From a Non-Federal Source for Travel      41, 304
     Expenses
Payment of Expenses Connected With the Death of   41, 303
     Certain Employees
Peace Corps                                       22, III
Pennsylvania Avenue Development Corporation       36, IX
Pension and Welfare Benefits Administration       29, XXV

[[Page 386]]

Pension Benefit Guaranty Corporation              29, XL
Personnel Management, Office of                   5, I; 45, VIII
  Federal Acquisition Regulation                  48, 17
  Federal Employees Group Life Insurance Federal  48, 21
       Acquisition Regulation
  Federal Employees Health Benefits Acquisition   48, 16
       Regulation
Postal Rate Commission                            5, XLVI; 39, III
Postal Service, United States                     5, LX; 39, I
Postsecondary Education, Office of                34, VI
President's Commission on White House             1, IV
     Fellowships
Presidential Commission on the Assignment of      32, XXIX
     Women in the Armed Forces
Presidential Documents                            3
Prisons, Bureau of                                28, V
Productivity, Technology and Innovation,          37, IV
     Assistant Secretary
Public Contracts, Department of Labor             41, 50
Public and Indian Housing, Office of Assistant    24, IX
     Secretary for
Public Health Service                             42, I
Railroad Retirement Board                         20, II
Reclamation, Bureau of                            43, I
Refugee Resettlement, Office of                   45, IV
Regional Action Planning Commissions              13, V
Relocation Allowances                             41, 302
Research and Special Programs Administration      49, I
Rural Business-Cooperative Service                7, XVIII, XLII
Rural Development Administration                  7, XLII
Rural Housing Service                             7, XVIII
Rural Telephone Bank                              7, XVI
Rural Utilities Service                           7, XVII, XVIII, XLII
Saint Lawrence Seaway Development Corporation     33, IV; 46, III
Science and Technology Policy, Office of          32, XXIV
Science and Technology Policy, Office of, and     47, II
     National Security Council
Secret Service                                    31, IV
Securities and Exchange Commission                17, II
Selective Service System                          32, XVI
Small Business Administration                     13, I
Smithsonian Institution                           36, V
Social Security Administration                    20, III; 48, 23
Soldiers' and Airmen's Home, United States        5, XI
Special Counsel, Office of                        5, VIII
Special Education and Rehabilitative Services,    34, III
     Office of
State Department                                  22, I
  Federal Acquisition Regulation                  48, 6
Surface Mining and Reclamation Appeals, Board of  30, III
Surface Mining Reclamation and Enforcement,       30, VII
     Office of
Surface Transportation Board                      49, X
Susquehanna River Basin Commission                18, VIII
Technology Administration                         15, XI
Technology Policy, Assistant Secretary for        37, IV
Technology, Under Secretary for                   37, V
Tennessee Valley Authority                        5, LXIX; 18, XIII
Thrift Depositor Protection Oversight Board       12, XV
Thrift Supervision Office, Department of the      12, V
     Treasury
Trade Representative, United States, Office of    15, XX
Transportation, Department of                     5, L
  Coast Guard                                     33, I; 46, I; 49, IV
  Commercial Space Transportation                 14, III
  Contract Appeals, Board of                      48, 63
  Emergency Management and Assistance             44, IV
  Federal Acquisition Regulation                  48, 12
  Federal Aviation Administration                 14, I
  Federal Highway Administration                  23, I, II; 49, III
  Federal Railroad Administration                 49, II
  Federal Transit Administration                  49, VI
  Maritime Administration                         46, II

[[Page 387]]

  National Highway Traffic Safety Administration  23, II, III; 49, V
  Research and Special Programs Administration    49, I
  Saint Lawrence Seaway Development Corporation   33, IV; 46, III
  Secretary of Transportation, Office of          14, II; 49, Subtitle A
  Surface Transportation Board                    49, X
Transportation, Office of                         7, XXXIII
Travel Allowances                                 41, 301
Treasury Department                               5, XXI; 17, IV
  Alcohol, Tobacco and Firearms, Bureau of        27, I
  Community Development Financial Institutions    12, XVIII
       Fund
  Comptroller of the Currency                     12, I
  Customs Service, United States                  19, I
  Engraving and Printing, Bureau of               31, VI
  Federal Acquisition Regulation                  48, 10
  Federal Law Enforcement Training Center         31, VII
  Fiscal Service                                  31, II
  Foreign Assets Control, Office of               31, V
  Internal Revenue Service                        26, I
  International Investment, Office of             31, VIII
  Monetary Offices                                31, I
  Secret Service                                  31, IV
  Secretary of the Treasury, Office of            31, Subtitle A
  Thrift Supervision, Office of                   12, V
Truman, Harry S. Scholarship Foundation           45, XVIII
United States and Canada, International Joint     22, IV
     Commission
United States and Mexico, International Boundary  22, XI
     and Water Commission, United States Section
United States Enrichment Corporation              10, XI
Utah Reclamation Mitigation and Conservation      43, III
     Commission
Veterans Affairs Department                       38, I
  Federal Acquisition Regulation                  48, 8
Veterans' Employment and Training, Office of the  41, 61; 20, IX
     Assistant Secretary for
Vice President of the United States, Office of    32, XXVIII
Vocational and Adult Education, Office of         34, IV
Wage and Hour Division                            29, V
Water Resources Council                           18, VI
Workers' Compensation Programs, Office of         20, I
World Agricultural Outlook Board                  7, XXXVIII

[[Page 389]]



                                     

                                     



                           Redesignation Table



------------------------------------------------------------------------
                Old section                          New section        
------------------------------------------------------------------------
Part 1309.................................  Part 1313                   
  1039.1..................................  1313.1                      
  1039.2..................................  1313.3(a)                   
  1039.2(a)...............................  1313.3(a)                   
  1039.2(b)...............................  1313.6(c)                   
  1039.2(c)...............................  1313.2(c)                   
  1039.2(d)...............................  1313.2(a)                   
  1039.2(e)...............................  1313.3(b)                   
  1039.3(a)...............................  1313.7(a)                   
  1039.3(b)-(c)...........................  1313.17                     
  1039.3(d)...............................  1313.16                     
  1039.3(e)...............................  1313.17                     
  1039.3(e), (e)(1) and (2)...............  1313.2(d)                   
  1039.3(f)...............................  1313.2(b)                   
  1039.3(g)...............................  1313.4(c)                   
  1039.4..................................  1313.4(a)                   
  1039.5..................................  1313.5                      
  1039.6..................................  1313.6 (a), (b), and (d)    
  1039.19.................................  1313.3(c)                   
Part 1300: \1\                                                          
  1300.310(b)(1)..........................  1313.8(b)(1) and 1313.15(a) 
  1300.310(b)(2)..........................  1313.15(a)                  
  1300.310(b)(3)..........................  1313.16                     
  1300.310(b)(4)..........................  1313.16(a)                  
  1300.311(b).............................  1313.7(b)                   
Part 1312.41:                                                           
  1312.41(a)(1)...........................  1313.7(a)                   
  1312.41(a)(2)-(4).......................  1313.8                      
  1312.41(b)..............................  1313.7(b)                   
  1312.41(c)..............................  1313.7(c)                   
  1312.41(d)..............................  1313.10-1313.13             
  1312.41(d)(4)...........................  1313.9(a)                   
  1312.41(e)..............................  1313.8(b)(1)                
  1312.41(f)..............................  1313.3                      
  1312.41(g)..............................  1313.3(d)                   
------------------------------------------------------------------------
\1\ Appendix to July 13, 1984 decision (49 FR 28718-28720) and not      
  recodified at Sec.  1312.41.                                          


------------------------------------------------------------------------
                New section                        Old section \1\      
------------------------------------------------------------------------
Part 1313:                                                              
  1313.1..................................  1039.1                      
  1313.2(a)...............................  1039.2(d)                   
  1313.2(b)...............................  1039.3(f)                   
  1313.2(c)...............................  1039.3(e), (e) (1) and (2)  
  1313.2(d)...............................  1039.2(c)                   
  1313.3(a)...............................  1039.2, (2)(a); 1312.41(f)  
  1313.3(b)...............................  1039.2(e)                   
  1313.3(c)...............................  1039.19                     
  1313.3(d)...............................  1312.41(g)                  
  1313.4 (a) and (b)......................  1039.4                      
  1313.4(c)...............................  1039.3(g)                   
  1313.5..................................  1039.5                      
  1313.6 (a) and (b)......................  1039.6                      
  1313.6(c)...............................  1039.2(b)                   
  1313.6(d)...............................  1039.6                      
  1313.7(a)...............................  1039.3(a); 1312.41(a)(1)    
  1313.7(b)...............................  1300.311(b); 1312.41(b)     
  1313.7(c)...............................  1312.41(c)                  
  1313.8(a)...............................  1312.41(a)(2)-(4)           
  1313.8(b)...............................  1300.310(b)(1); 1312.41(e)  
  1313.9(a)...............................  1312.41(d)(4)               
  1313.9(b)...............................  New                         
  1313.10.................................  1312.41(d)                  
  1313.11.................................  1312.41(d)                  
  1313.12.................................  1312.41(d)                  
  1313.13.................................  1312.41(d)                  
  1313.14.................................  New                         
  1313.15.................................  1300.310(b) (1) and (2)     
  1313.16.................................  1039.3(d); 1300.310 (b)(3)  
                                             and (b)(4)                 
  1313.17.................................  1039.3 (b)-(c) and (e)      
------------------------------------------------------------------------
\1\ Appendix to July 13, 1984 decision (49 FR 28718-28720) and not      
  recodified at Sec.  1312.41.                                          


[[Page 391]]


















































List of CFR Sections Affected


All changes in this title of the Code of Federal Regulations which were 
made by documents published in the Federal Register since January 1, 
1986, are enumerated in the following list. Entries indicate the nature 
of the changes effected. Page numbers refer to Federal Register pages. 
The user should consult the entries for chapters and parts as well as 
sections for revisions.
For the period before January 1, 1986, see the ``List of CFR Sections 
Affected, 1949-1963, 1964-1972, and 1973-1985'' published in seven 
separate volumes.

                                  1986

49 CFR
                                                                   51 FR
                                                                    Page
Chapter X
1220  Revision eff. 10-18-85.......................................22083
1220.0  Amended....................................................44297
1220.6  Table amended..............................................22083
1241  Annual report certification clarification....................19844
1312  Authority citation revised............................27046, 33753
1312.1  (b)(6) and (15) amended....................................44297
1312.4  (e)(1)(ii)(A) revised; (e)(1)(ii)(C) added..................9814
    (b)(7)(ii), (iii), (iv), and (vi) revised; eff. 10-23-86.......33753
    (b)(7)(i), (iii), (iv), and (v) and (e)(1)(ii)(B) amended......44297
1312.8  (c)(2) amended.............................................44297
1312.11  Heading amended...........................................44297
1312.14  (j) amended...............................................44297
1312.15  Heading amended...........................................44297
1312.17  (k)(3) added..............................................37035
    (k)(3) correctly added.........................................40171
1312.32  Introductory text amended.................................44297
1312.37  (b), (c), and (d) revised..................................3071
    (c)(1) revised.................................................27046
    (a) amended....................................................44297
1312.39  (f) revised; (i) added.....................................9814
    (h) amended....................................................44297
1312.41  (a)(1)(i) revised..........................................3340
    Removed (regulations transferred to Part 1313); interim........45899
1313  Added (regulations transferred from Part 1039 and Section 
        1312.41); interim..........................................45899
1320  Heading amended..............................................44297
1320.1  (a) amended................................................44297
1330.1  Amended....................................................44297
1331.1  (c) amended................................................44297

                                  1987

49 CFR
                                                                   52 FR
                                                                    Page
Chapter X
1201 (Subpart A)  Authority citation revised........................4321
1201  Amended.......................................................4321
1206  Authority citation revised; definitions, instructions, and 
        account explanations authority citations removed...........20400
    0-1 removed; existing text designated as 1206.2................20400
1206.1  Added......................................................20400
1206.2  Heading added; text designated from existing Part 1206.....20400
1207  Authority citation revised; definitions, instructions, and 
        account explanations authority citations removed...........10382
    Existing text designated as 1207.2.............................10382
    Authority citation corrected...................................33418
1207.1  Added......................................................10383

[[Page 392]]

1207.2  Designated from Part 1207 text.............................10382
1244  Authority citation revised...................................12416
    Authority citation corrected...................................33418
1244.8  Added......................................................12416
1249  Authority citation revised...................................10383
    Technical correction...........................................33419
1249.1  Revised....................................................10383
1249.2  Revised....................................................10383
1249.3  Removed....................................................10383
    Added..........................................................20400
1249.4  Revised....................................................20400
1249.5  Added......................................................10383
1249.12  Removed...................................................10383
1312  Authority citation revised..............................537, 4627,
15949, 39536
1312.4  (e)(1)(i)(E) added...........................................537
1312.12  (e)(1) amended.............................................4627
1312.14  (a)(1) amended.............................................4627
1312.17  (e) amended; interim......................................15726
1312.30  (c)(5) revised............................................39536
    (c)(5) introductory text corrected.............................41560
1312.39  (h) heading revised; (h)(2) amended.........................537
    (h)(6) revised; interim........................................15726
    (h)(4) revised.................................................15949
1312.41  Added......................................................3664
1313  Comment time extended.........................................7278
    Authority citation revised.....................................25228
    Authority citation corrected...................................33419
1313.2  (a) text designated as (a)(1); (a)(2) added................25228
1313.10  (b)(4)(i) suspended........................................3664
1313.11  (b)(3)(i) suspended........................................3664

                                  1988

49 CFR
                                                                   53 FR
                                                                    Page
Chapter X
1201  Amended......................................................46620
1206.2  Amended.....................................................4028
1207.1  Removed; new 1207.1 redesignated from 1207.2...............40428
1207.2  Redesignated as 1207.1.....................................40428
1249.1  Revised....................................................40428
1249.3  Revised.....................................................4029
1312.30  (c)(5) revised.............................................5983
1312.41  Removed....................................................5380
1313  Revised.......................................................5380
1320.2  (g) redesignated as (h); new (g) added......................6991
1320.3  (c) amended.................................................6991
1331  Authority citation revised...................................10097
1331.3  (b) amended.........................................10097, 19303

                                  1989

49 CFR
                                                                   54 FR
                                                                    Page
Chapter X
1207.1  Amended....................................................33555
1249.2  (b)(1) revised.............................................33556
1280.5  (d) amended................................................38998
1312  Removed.......................................................6404
    Effective date deferred........................................10533
    Partial lifting of stay........................................42959
1312.13  (h)(1) and (i) through (v) redesignated as (h) 
        introductory text and (1) through (5)......................38998
1314  Added.........................................................6404
    Effective date deferred........................................10533
    Partial lifting of stay........................................42959
1314.5  (b) table corrected.........................................9053
1314.6  (b) corrected...............................................9053
1314.8  (b) Example (2) correctly revised...........................9053
1320.2  (g)(2)(v) amended; (g)(2)(vi) added; eff. 10-22-89.........30748
1320.3  (c) revised; eff. 10-22-89.................................30748

                                  1990

49 CFR
                                                                   55 FR
                                                                    Page
Chapter X
1201  Amended......................................................42016
1312.39  (j) added; interim eff. to 2-26-90.........................1035
1313.7  (d) added....................................................157
1331  Revised......................................................11206

                                  1991

49 CFR
                                                                   56 FR
                                                                    Page
Chapter X
1220.3  (a) and (b) revised; (c), (d) and (e) removed; (f) and (g) 
        redesignated as (c) and (d); new (c) revised; new (d) 
        amended....................................................30874
1313.7  (d) redesignated as (e); new (d) added; heading and new 
        (e)(1) revised.............................................58320

[[Page 393]]

1330  Authority citation revised....................................8722
1330.1  Revised.....................................................8722

                                  1992

49 CFR
                                                                   57 FR
                                                                    Page
Chapter X
1201  Amended......................................................27185
    Corrected......................................................31754
1313.2  (b) revised; eff. 10-5-92..................................40621
1313.3  (a) introductory text, (b) and (c)(1) revised; eff. 10-5-
        92.........................................................40621
    (a) and (b) corrected; eff. 10-5-92............................43291
1313.7  (b)(1)(iv) revised; eff. 10-5-92...........................40622
1313.10  (b)(5)(iii) revised; eff. 10-5-92.........................40622
1313.11  (b)(4)(iii) revised; eff. 10-5-92.........................40622
1321  Added........................................................40857
    Technical correction...........................................43059
    Effective date delayed to 10-8-92..............................43925
1321.1  Amended....................................................54189
1321.5  Introductory text amended..................................54189
1332.2  Added......................................................23539
1332.3  Revised.................................................23539...
                                  1993
49 CFR
                                                                   58 FR
                                                                    Page
Chapter X
1312  Regulation at 58 FR 7748 stayed..............................17788
    Regulation at 58 FR 7748 eff. 10-1-93..........................52027
1312.4  (