OPERATING EXPENSES-MAINTENANCE OF WAY AND STRUCTURES

121.1 Superintendence (account 201)

Assign directly as per section 121.01. Apportion common expenses according to proportions of accounts 202 to 265, inclusive, 269 to 277, inclusive, and 281 and 282, excluding common expenses in accounts 247, and 274 to 277, inclusive, and 282.

121.2 Roadway maintenance; tunnels and subways; bridges, trestles and culverts; elevated structures; ties; rails; other track material; ballast; track laying and surfacing; and fences, snowheds and signs (accounts 202–221) A. Separate all tracks which are maintained by respondent into the following three classes: Yard switching tracks, Way switching tracks, and Running tracks, as defined below:

(1) Yard switching tracks.-Includes tracks in yards where separate switching services are maintained, including classification, house, team, industry, and other tracks switched by yard locomotives. Excludes running tracks located within yards which are regularly used by road trains, passing tracks, and all turnouts from these tracks to clearance points.

(2) Way switching tracks.-Includes station, team, industry, and other switching tracks for which no separate switching service is maintained.

(3) Running tracks.-Includes running tracks, passing tracks, crossovers, etc., including turnouts from those tracks to clearance points.

B. The separation of the expenses between yard switching tracks, way switching tracks, and running tracks shall be based either on the work actually performed and materials used for each class of track or on a weighted track-mile basis, developed from special studies. The expenses for each class of track shall be separated between freight service and passenger service as follows:

(1) Yard switching tracks.-Expenses for exclusively freight or passenger yards shall be directly assigned. 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 switching tracks.—Expenses of exclusively freight or passenger tracks shall be directly assigned. 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 preponderant use of them.

(3) Running tracks.-Expenses of tracks exclusively used for freight or passenger service shall be directly assigned. The expenses of tracks used in common by both services shall be apportioned on the basis of gross tonmiles (including locomotive ton-miles) handled over these common tracks in the respective services.

21.3 Station and office buildings (account 227)

Assign directly as per section 121.01. 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, apportion the common expenses on the basis of the directly assigned expenses in this account for the accounting division involved. Where 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 should be apportioned on the basis of special test. Where common expenses exist in any accounting division but the direct expenses are applicable to only one service, i.e., freight or passenger, the common expenses shall be apportioned 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.

(21.4 Roadway building (account 229)

Assign directly as per section 121.01. Apportion common expenses according to proportions of accounts 202 to 221, inclusive.

21-5 Water stations (account 231)

Assign directly as per section 121.01. Apportion common expenses according to proportions of accounts 385 and 397, after deducting charges for water issued from stations assigned direct.

121.6 Fuel stations (account 233)

Assign directly as per section 121.01. Apportion common expenses according to proportions of charges to accounts 382 and 394, after deducting charges from fuel stations assigned direct.

121.7 Shops and enginehouses (account 235)

Assign directly as per section 121.01. Apportion common expenses of shops according to proportions of accounts 308, 311, 314, 317, 323, and 326, excluding common expenses in account 326; of enginehouses according to proportions of accounts 388 and 400.

121.8 Grain elevators; storage warehouses; wharves and docks; and coal and ore wharves (accounts 237–243)

Assign directly or apportion according to facts in individual instances.

Assign directly as per section 121.01. Apportion common expenses on basis of accounts 201, 301, 351, 371, and 372 taken together.

Note: As accounts 451 and 452 are apportioned on the basis of proportions established for accounts 201 to 449, inclusive, they are not included here as bases for apportioning account 247.

121.10 Signals and interlockers (account 249)

Assign directly as per section 121.01. Apportion common expenses on the basis of the total train-hours (including train-switching hours) and yardswitching hours.

121.11 Power plants (account 253)

Assign directly as per section 121.01. Apportion common expenses on basis of power used.

121.12 Power-transmission systems; and miscellaneous structures (257-265) Assign according to the facts in individual instances.

121.13 Road property-depreciation; retirements-road, etc. (accounts 266–267) Assign directly as per section 121.01. Apportion common expenses according to the proportions of charges under the appropriate maintenance of way and structures accounts.

121.14 Roadway machines (account 269)

Assign directly as per section 121.01. Apportion common expenses according to proportions of accounts 202 to 221, inclusive.

121.15 Dismantling retired road property (account 270)

Assign directly as per section 121.01. Apportion common expenses according to proportions of charges under the appropriate maintenance of way and struc tures accounts.

121.16 Small tools and supplies, removing snow, ice, and sand; and public improvements-maintenance (accounts 271–273)

Assign directly as per section 121.01. Apportion common expenses according to proportions of accounts 202 to 221, inclusive.

121.17 Injuries to persons; insurance; stationery and printing: employees health and welfare benefits; and other expenses (accounts 274-277 and 282) When not determined by the particulars in individual instances, these expenses shall be apportioned according to the percentages used to divide commen expenses of account 201.

121.18 Maintaining joint tracks, etc. (account 270–279)

Joint facility debits shall be separated according to use made of the facilities by the debtor carrier regardless of the use by the other carriers. The creditor carrier shall apportion the credits on the basis of accounts 202 to 277, inclusive. and 281 and 282, excluding common expenses in account 247.

121.19 Right-of-way expenses (account 281)

Assign directly as per section 121.01. Apportion common expenses according to proportions of accounts 202 to 221, inclusive.

121.20

MAINTENANCE OF EQUIPMENT

Superintendence (account 301)

Assign directly as per section 121.01. Apportion common expenses according to the proportions of accounts 302, 304, 306, to 329, inclusive, and 332, to 335, inclusive, and 339, excluding common expenses in accounts 328, and 332 to 335, inclusive, and 339.

121.21 Shop machinery (account 302)

Assign directly as per section 121.01. Apportion common expenses according to proportions of accounts 308, 311, 314, 317, 323, and 326 combined.

121.22 Power-plant machinery (account 304)

Assign directly as per section 121.01. Apportion common expenses on basis of power used.

121.23 Shop and power-plant machinery-depreciation; and dismantling retired shop and power-plant machinery (accounts 305–306)

Assign directly as per section 121.01. Apportion common expenses according to tenor of accounts 302 and 304.

121.24 Steam locomotives-repairs (account 308)

(a) Where the carrier maintains records of the repairs by individual locomotive units or classes of locomotive units.-When the individual locomotive units or classes of locomotive units are used exclusively in road-freight, road-passeger, yard-freight, or yard-passenger services, the separation shall be actual. When the individual locomotive unit or classes of locomotive units are used interchangeably in road-freight (including train-switching), road passenger, yardfreight or yard-passenger services, distribute the heavy shop repairs between these services on the basis of run-out miles of individual locomotive units or classes of locomotive units since the previous shopping; and distribute the cost of running repairs between such services on the basis of the miles run by the individual locomotive unit or class of locomotiive unit in each service during the accounting period for which the separation is being made.

(b) Where the cost of heavy shop repairs is kept by individual locomotive units or classes of locomotive units, but the cost of running repairs is not kept by individual locomotive units or classes of locomotive units.-The heavy shop repairs should be distributed as indicated in (a) above. The cost of running repairs shall be apportioned among road-freight (including train switching), roadpassenger, yard-freight and yard-passenger services on the basis of locomotive ton-miles or locomotive unit miles for the accounting period for which the separation is being made.

(c) Where record is not kept of either heavy shop repairs or running repairs by individual locomotive units or classes of locomotive units.-The expenses shall be distributed among road-freight service (including train-switching), roadpassenger service, yard-freight, and yard-passenger, on the basis of locomotive ton-miles or locomotive unit-miles for the accounting period for which the separation is being made.

121.25 Other locomotives-repairs (account 311)

Treat in accordance with the methods used for account 308.

121.26 Freight-train cars-repairs; and passenger-train cars-repairs (accounts

314-137)

Assign directly.

121.27 Floating equipment-repairs (account 333)

Apportion according to use made of the floating equipment.

121.28 Work equipment-repairs (account 326)

Apportion common expenses according to proportions of accounts 202 to 265, inclusive, 269 to 273, inclusive, and 281, excluding common expenses in account 247. 121.29 Miscellaneous equipment-repairs (account 328)

Assign directly as per section 121.01. Apportion common expenses according to percentages used to divide common expenses of accounts 201, 301, 351, and

121.30 Dismantling retired equipment (account 329)

Observe tenor of directions under accounts 308 to 328, inclusive. 121.31 Retirements-equipment (account 330)

Assign directly.

121.32 Equipment-depreciation (account 331)

Observe tenor of directions under accounts 308 to 328, inclusive.

121.33 Injuries to persons; insurance; stationery and printing; employees health and welfare benefits; and other expenses (accounts 332–335, and 339) When not determined by the particulars in individual instances, these expenses shall be apportioned according to the percentages used to divide common expenses of account 301.

121.34 Joint maintenance of equipment expenses, etc. (accounts 336-337)

Joint equipment charges shall be treated on appropriate basis according to the use made of the equipment by the debtor carrier, regardless of the use by other carriers. Creditor carrier should apportion the credits on the basis of ac counts 302 to 335, inclusive, and 339.

TRAFFIC

121.36 Superintendence; outside agencies; advertising; traffic associations; fast freight lines; industrial and immigration bureaus; insurance; stationery and printing; employees health and welfare benefits; and other expeRSTA (accounts 351–360)

Assign directly as per section 121.01. Apportion the unassigned remainder of the basis of the directly assigned expenses in this general account, other than advertising expense.

TRANSPORTATION: RAIL LINE

121.37 Superintendence (account 371)

Assign directly as per section 121.01. Apportion common expenses according to the proportions of accounts 372 to 420, inclusive, excluding the total expenses in accounts 390, 391, 412, and 413, and common expenses in accounts 407, 409. 410, and 411.

121.38 Dispatching trains (account 372)

Assign directly as per section 121.01. Apportion common expenses on the basis of transportation service train hours, including train switching hours. 121.39 Station employees (account 373)

Assign directly as per section 121.01. 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, apportion the common expenses on the basis of the directly assigned expenses in this account for the accounting division in volved. Where 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 should be apportioned on the basis of special text. Where common expenses exist in any accounting division but the direct expense 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 apportioned 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.

121.40 Weighing, inspection, and demurrage bureaus; and coal and ore wharve (accounts 374-375)

Assign directly.

121.41 Station supplies and expenses (account 376)

Assign directly as per section 121.01. 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, apportion the common expenses on the bass applicable to only one service, i.e., freight or passenger, and even though the shall be apportioned on the basis of a special test. If the accounting is performed of the directly assigned expenses in this account for the accounting division involved. Where 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 should be apportioned on the basis of special test. Where common expenses apply in any accounting division but the direct expenses are on a system basis rather than by accounting divisions, follow the intent of the above instructions.

121.42 Yardmasters and yard clerks; yard conductors and brakemen; yard switch and signal tenders; and yard enginemen (accounts 377-380)

Expenses for exclusively freight or passenger yard shall be assigned directly. Apportion the expenses of common yards on the basis of the total yard-switching hours in those yards.

= 121.43 Yard switching fuel (account 382)

Expenses for exclusively freight and passenger yards shall be assigned directly. Apportion the common expenses of each kind of fuel on the basis of the switching locomotive unit-hours of the locomotives using that kind of fuel in those yards. 121.44 Yard switching power produced; and purchased (accounts 383-384)

Expenses for exclusively freight and passenger yards shall be assigned directly. Apportion the expenses of the common yards on the basis of the switching locomotive unit-hours of the locomotives in the common yards using the power produced or purchased.

121.45 Water for yard locomotives (account 385)

Expenses for exclusively freight and passenger yards shall be assigned directly. Apportion the expenses of common yards on the basis of account 382, yard-switching fuel.

121.46 Lubricants, and other supplies for yard locomotives; enginehouse expenses-yard; and yard supplies and expenses (accounts 386–389)

Expenses for exclusively freight or passenger yards shall be assigned directly. Apportion the expenses of common yards on the basis of the total switching locomotive unit-hours in those yards.

121.47 Operating joint yards and terminals, etc. (accounts 390-391)

Joint facilities shall be treated on appropriate bases according to the use made of the facilities by the debtor carrier, regardless of the use by other carriers. Creditors carriers shall apportion the total of account 391 on the basis of accounts 373, and 376 to 389, inclusive.

121.48 Train enginemen; tramm fuel; train power produced; and train power purchased (accounts 392–396)

Assign directly as per section 121.01. Apportion common expenses on the basis of the direct assignment.

121.49 Water for train locomotives (account 397)

Assign directly as per section 121.01. Apportion common expenses on the basis of the expense of fuel consumed by locomotive units in freight-train and passenger-train services, respectively.

121.50 Lubricants for train locomotives; and other supplies for train locomotives (accounts 398-399)

Observe tenor of directions under accounts 392 to 396, inclusive.

121.51 Enginehouse expenses-train (account 400)

Assign directly as per section 121.01. Common expenses at each enginehouse shall be divided according to the number of locomotive units handled for each service.

121.52 Trainmen; and train supplies and expenses (accounts 401–402)

Observe tenor of directions under accounts 392 to 396, inclusive.

121.53 Operating sleeping cars (account 403)

Assign to passenger.

121.54 Signal and interlocker operation; and crossing protection (accounts 404-405)

Assign directly as per section 121.01. Apportion common expenses on the basis of the total train-hours (including train-switching hours), and yard-switching hours.

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