amounts representing electricity, services, supplies, etc., furnished by the electric department to the municipality or its other departments without charge, or the amount of the reduction if furnished at a reduced charge. (See Operating revenue instruction 8 hereinafter, § 102.6-8.) **

EARNED SURPLUS ACCOUNT

(See $ 102.01-1 (i))
(For Municipal Licensees)

CREDITS

271. Earned Surplus (at beginning of period).
400. Credit Balance Transferred from Income Account.
401. Miscellaneous Credits to Surplus.
Total Credits.

DEBITS

410. Debit Balance Transferred from Income Account.
411. Authorized Cash Distributions to the Municipality.
413. Miscellaneous Reservations of Surplus.
414. Miscellaneous Debits to Surplus.

Total Debits.
271. Earned Surplus (at end of period).

SUPPLEMENTAL SURPLUS ACCOUNTS

102.411 Authorized cash distributions to the municipality. This account shall include the cash distributions authorized to be made to the municipality out of the earned surplus of the electric department.**

SUPPLEMENTAL INSTRUCTIONS, INCOME ACCOUNTS 102.5-5 Tax equivalents. In cases where the electric department pays to the municipality amounts which are understood to constitute payments equivalent to or in lieu of amounts that would be paid if the department were subject to local tax levies, amounts thus authorized to be paid shall be charged to Account 507, Taxes, which account shall be so subdivided as to show actual taxes and amounts charged as tax equivalents or in lieu of taxes.* [Instruction 5, Uniform system of accounts, public utilities and licensees, FPC, effective Jan. 1, 1937, p. 151]

SUPPLEMENTAL INSTRUCTIONS, OPERATING REVENUE ACCOUNTS

102.6–8 Electric energy supplied to municipality. Electric energy supplied to the municipality by the electric department shall be recorded in the revenue accounts provided herein at tariff rates or at rates equivalent to those paid by customers for like service. If the municipality does not pay for the electric energy thus supplied, or if payment is made at reduced rates, the total amount or difference, as the case may be, shall be charged to Account 272, Constructive Surplus or Deficit. All such revenues, except those properly includible in Account 603, Public Street and Highway Lighting, shall be included in Account 604, Other Sales to Public Authorities, which account shall be so subdivided as to show sales to the municipality and to other public authorities.* [Instruction 8, Uniform system of accounts, public utilities and licensees, FPC, effective Jan. 1, 1937, p. 151]

CLEARING ACCOUNTS

(See § 102.01–1 (i))

(FOR MUNICIPAL LICENSEES) 901. Charges by Municipality-Clearing. 902. Stores Expenses—Clearing. 903. Transportation Expenses Clearing. 904. Laboratory Expenses Clearing. 905. Shop Expenses Clearing.

SUPPLEMENTAL CLEARING ACCOUNTS

102.901 Charges by municipality-clearing. (a) This account shall include all charges made by the municipality against the electric department for any purpose whatsoever, except amounts payable by the electric department to the municipality for taxes imposed or tax equivalent, amounts payable as interest or return on the investment of the municipality in the electric department, and authorized cash distributions. Include in this account charges for or incident to management, supervision, purchasing, construction, accounting, engineering, legal, financial, rent, advertising, materials and supplies, equipment and other property, commissions,

insurance, printing, portions of the salaries and expenses of officers and employees of the municipality chargeable to the electric department, and all other items, whether the ultimate distribution is to electric plant, operating expense, or other accounts.

(b) This account shall be cleared by charging to the appropriate accounts the amounts applicable thereto.

(c) No debits for any expenditures described in paragraph (a) shall be made to any other account in this system of accounts except by clearing through this account.*. [Account 901, Uniform system of accounts, public utilities and licensees, FPC, effective Jan. 1, 1937, p. 152]

NOTE: The mandatory use of this account may be waived or suspended upon approval or order of the Commission, if equivalent information is readily obtainable from other sources in the records of the electric department.

PART 103-STEAM ROAD INVESTMENTS IN ROAD AND EQUIPMENT; APPLICATION OF ICC CLASSIFICATION

Sec.

General provisions 103.00-1 Order of the Commission. 103.00–2 Introductory letter. 103.01-1 Determination of cost

Sec.

General instructions 103.02-0 Records. 103.02–1 Accounts for investment in

road and equipment. 103.02–2 Items to be charged.

of

GENERAL PROVISIONS Section 103.00-1 Order of the Commission.

At a General Session of the Interstate Commerce Commission, held at its office in Washington, D. C., on the 19th day of May, A. D. 1914.

The subject of a Uniform System of Accounts to be prescribed for and kept by carriers being under consideration, the following order was entered:

It is ordered, That the Classification of Investment in Road and Equipment of Steam Roads and the text pertaining thereto, embodied in printed form to be hereafter known as Issue of 1914, a copy of which is now before this Commission, be, and the same is hereby, approved; that a copy thereof duly authenticated by the Secretary of the Commission be filed in its archives, and a second copy thereof, in like manner authenticated, in the office of the Division of Carriers Accounts; and that each of said copies so authenticated and filed shall be deemed an original record thereof.

It is further ordered, That the said Classification of Investment in Road and Equipment of Steam Roads with the text pertaining thereto be, and is hereby, prescribed for the use of carriers by rail (exclusive of electric railways) subject to the provisions of the Act to Regulate Commerce as amended, in the keeping and recording of their accounts of investment in road and equipment; that each and every such carrier and each and every receiver or operating trustee of any such carrier be required to keep all said accounts in conformity therewith; and that a copy of said issue be sent to each and every such carrier and to each and every receiver or operating trustee of any such carrier.

It is further ordered, That any such carrier or any receiver or operating trustee of any such carrier may subdivide any primary account established in said issue, or may make assignment of the amount included in any such primary account to operating divisions, to its individual lines, or to States: Provided, however, That such subprimary accounts set up or such assignments made by any such carrier or by any receiver or operating trustee of any such carrier do not impair the integrity of the accounts hereby prescribed; and provided also that a list of such subprimary accounts set up or such assignments made be first filed in the office of the Division of Carriers' Accounts, subject to disapproval by the Commission.

It is further ordered, That in order that the basis of comparison with previous years be not destroyed, any such carrier or any receiver or operating trustee of any such carrier may, during the twelve months ending June 30, 1915, keep and maintain, in addition to the accounts of investment in road and equipment hereby prescribed, such portion or portions of its present accounts with respect to items of investment in road and equipment as may be deemed desirable by any such carrier or by any receiver or operating trustee thereof, for the purpose of such comparison; or, during the same period, may maintain such groupings of the primary accounts hereby prescribed as may be desired for that purpose.

It is further ordered, That, unless otherwise ordered, any such carrier or any receiver or operating trustee of any such carrier may keep any temporary or experimental accounts for investment the purpose of which shall be to develop economies in construction: Provided, however, That such temporary or experimental accounts shall not impair the integrity of any general or primary account hereby prescribed.

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It is further ordered, That July 1, 1914, be, and is hereby, fixed as the date on which said issue of the Classification of Investment in Road and Equipment shall become effective.

By the Commission. (SEAL]

GEORGE B. McGINTY,

Secretary. [Appen. II, effective Jan. 1, 1937, p. 5] *88 103.00–1 to 103.77, inclusive, issued under the authority contained in secs. 3 (13), 4 (b), 301 (a), 304 (a), 309, 49 Stat. 839, 854, 855, 858; 16 U.S.C., Sup., 796 (13), 797 (b), 825 (a), 8250 (a), 825h. 103.00-2 Introductory letter.

INTERSTATE COMMERCE COMMISSION,
DIVISION OF CARRIERS' ACCOUNTS,

Washington, May 19, 1914. To ACCOUNTING OFFICERS OF STEAM RAILWAYS:

This Classification of Investment in Road and Equipment supersedes the Classification of Expenditures for Road and Equipment, First Revised Issue, effective July 1, 1907, with the Supplement thereto, effective July 1, 1908, and also the Classification of Expenditures for Additions and Betterments, First Revised Issue, effective July 1, 1910. It also supersedes conflicting instructions contained in Accounting Bulletin No. 8.

The plan of merging the accounts of expenditures for additions and betterments with the accounts for investment in road and equipment provides that carriers' records shall be kept in such form that the expenditures for additions and betterments may be reported separately from those for original road, original equipment, and road extensions.

Distinct accounts have been provided for the investment in several classes of buildings which, under the former classification, were included in the account “Miscellaneous structures."

The general and special instructions contain a comprehensive statement of the principles underlying the classification, indicating generally the application of the accounting rules. The attention of accounting officers is called to the importance of requiring all employees who are assigned to accounting work in connection with investment in road and equipment to familiarize themselves thoroughly with these instructions.

In the preparation of the revision of the accounting rules contained in this and other classifications for steam roads, which are concurrently issued, the Commission has had the cooperation of the Association of American Railway Accounting Officers, and of its Standing Committee on Corporate, Fiscal, and General Accounts.

The classification, in tentative form, was presented for criticism and suggestions to the chief accounting officer of each railway and to the railway commissions of the several States. All suggestions received from such parties have been given careful consideration and

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