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GENERAL INSTRUCTIONS-OPERATING REVENUE ACCOUNTS

14.1-1 Accounts for operating revenues. The accounts provided for operating revenues are designed to show amounts of money which the carrier becomes entitled to receive from transportation by rail and from services incident thereto.

No charge shall be made against the accounts of this classification for amounts representing tariff charges which for any cause are uncollected, the service for which the charge is made having been properly performed and individuals or companies being liable for the charges.

Uncollectible charges against individuals and companies, representing tariff charges for transportation service rendered for which such individuals and companies are liable, shall be charged to income account No. 225, "Miscellaneous debits." This includes items such as charges where credit has been extended and the debtor becomes insolvent, and also uncollectible undercharges discovered after the service has been rendered.**

In 88 14.1-1 to 14.1-3, inclusive, the numbers to the right of the dash correspond with the respective general instruction numbers in Uniform system of accounts for electric railways (operating revenue accounts), Interstate Commerce Commission, May 28, 1914. Cross references to accounts are made by citing the account number, e. g., account No. 225, instead of the corresponding section number (§ 14.225).

14.1-2 Auxiliary operations. If a carrier conducts a general power, light, heat, or other business not incident to transportation, the entire revenue of each of such operations shall be stated separately in subaccounts under income account No. 202, "Auxiliary operations Revenues." (See §§ 14.0-2, 14.0-3.)*+

14.1-3 Distribution of delayed items. Delayed items are items representing transactions which occurred before the current year. When no provision has been made through entries in the accounts of this classification for anticipating delayed items creditable to the accounts herein, and the amount of any such item is relatively so large that its inclusion in the accounts for a single year would unduly affect those accounts for that year, when so authorized upon application to the Interstate Commerce Commission, the carrier shall distribute to Profit and Loss so much of the amount as may be authorized. The application to the Commission for exceptional accounting for delayed items shall give full particulars concerning the item, and the reasons which, in the carrier's judgment, indicate the need for a special accounting rule.*†

OPERATING REVENUE ACCOUNTS

I. REVENUE FROM TRANSPORTATION

14.101 Passenger revenue. This account shall include amounts earned for the transportation of passengers. To it shall be credited the carrier's proportion of receipts from the sale of tickets and transfers and from the collection of cash fares.

*For statutory citation, see note to § 14.00–1.

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To this account shall be charged amounts paid for fares refunded and for tickets and transfers redeemed; also amounts paid for transferring passengers and baggage between stations, except in cases where the transfer of both passengers and baggage is provided for in the division of the through rate.*F

NOTE A: Cash fare penalty collections made by conductors and the proportion of amounts derived from sales of mileage tickets and mileage credentials, and subject to refund, shall not be credited to this account.

NOTE B: Receipts from mileage books when sold shall be credited to an open account, which account shall be charged and this account credited as the mileage is honored for transportation. A similar practice may be followed in connection with the sale of strip, coupon, and other tickets.

In §§ 14.101 to 14.119, inclusive, the numbers to the right of the decimal point correspond with the respective account numbers in Uniform system of accounts for electric railways (operating revenue accounts), Interstate Commerce Commission, May 28, 1914, as amended. The amendment of July 13, 1937, is noted in brackets following the section affected. Cross references to accounts are made by citing the account number, e. g., account No. 117, instead of the corresponding section number (§ 14.117).

14.102 Baggage revenue. This account shall include amounts earned for the transportation of baggage in excess of free authorized allowances; and for transportation of packages, articles, dogs, etc., as baggage.

To this account shall be charged all baggage refunds.**

14.103 Parlor, sleeping, dining, and special car revenue. This account shall include amounts earned for seat accommodations furnished in parlor, observation, chair, and other special passenger cars, including revenue from cars chartered for special passenger service, from berth and seat accommodations furnished in sleeping cars, and from meals, beverages, cigars, tobacco, and other articles sold on dining, sleeping, and special cars.

To this account shall be charged the cost of provisions, beverages, cigars, tobacco, and other articles sold on dining, sleeping, and special cars. To this account shall be charged also amounts previously credited thereto representing refunds of fares for accommodations, refunds of overcharges resulting from the use of erroneous rates, and other authorized refunds.*+

14.104 Mail revenue. This account shall include amounts earned for the transportation of mails and for the use of railway mail cars, for use of special facilities, and from bonuses for special mail transportation.

To this account shall be charged fines and penalties imposed by the Government, when not collected from agents or employees.*+

14.105 Express revenue. This account shall include amounts earned for transportation of express matter and for use of facilities on cars and at stations incident to such transportation, but not including the separate rents of offices at stations.

When a railway company transacts an express business through its regular railway organization, the earnings therefrom shall be credited to this account. The revenue from express traffic handled under con

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*For statutory citation, see note to § 14.00-1.

tract with an express company, regardless of the arrangement or basis upon which the compensation is fixed, shall be credited to this account. The term express is intended to cover matter handled at a higher rate than for freight on account of quicker service or collection and delivery.**

NOTE: Rent receivable for rooms at stations used by others in conection with express service shall be credited to account No. 117, "Rent of buildings and other property."

14.106 Milk revenue. This account shall include amounts earned for the transportation of milk and cream.

To this account shall be charged refunds and overcharges on milk and cream so carried.*+

14.107 Freight revenue. This account shall include amounts earned for the transportation of freight, other than milk and cream.

To this account shall be charged overcharges paid, resulting from the use of erroneous rates, weights, or classification; amounts paid under tariff authority for switching, drayage, and cartage; authorized allowances; uncollected earnings on freight destroyed in transit, and on short and lost freight.*+

NOTE A Other carriers' proportions of revenue paid by the carrier on freight lost or destroyed in transit shall be charged to operating expense account No. 77, "Loss and damage."

NOTE B: Uncollectible undercharges and uncollectible freight charges discovered after the service has been rendered shall be charged to income account No. 225, "Miscellaneous debits." (See § 14.1-1.)

14.108 Switching revenue. This account shall include amounts earned for switching service. To this account shall be charged all overcharges on such switching service.**

14.10812 17 Protective service revenue-Perishable freight. This account shall include the revenue from protective service to perishable freight, classified as follows:

(a) Revenue from service for the protection against heat and from specific services incidental thereto upon the basis of tariff charges.

(b) Revenue from service for the protection against cold and from specific services incidental thereto upon the basis of tariff charges.*+ [As added July 13, 1937, 2 F.R. 1259]

NOTE A: Each carrier performing protective service to perishable freight against heat or cold, locally or jointly with one or more carriers, shall include in this account the total amount accruing to it under tariff provisions for the service performed on its line, without diminution by amounts paid to and retained by others than carriers for protective service rendered. Amounts paid to and retained by others than carriers for protective service rendered shall be charged to account 67, "Miscellaneous car-service expenses," in the accounts of the respective carriers.

NOTE B: The cost of ice and salt for refrigeration, the cost of fuel for heating, and allowances to shippers in accordance with tariff provision for prewarming cars, shall be charged to account 67, "Miscellaneous car-service expenses."

NOTE C: Collections in excess of tariff charges shall be included in this account pending refund.

NOTE D: To this account shall be charged the carrier's proportion of uncollectible tariff charges.

NOTE E: The carrier's records shall be so kept as to reflect the net revenue separately under items (a) and (b).

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*For statutory citation, see note to § 14.00-1.

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14.109 Miscellaneous transportation revenue. This account shall include all amounts earned from transportation and not provided for elsewhere.*†

II. REVENUE FROM OTHER RAILWAY OPERATIONS

14.110 Station and car privileges. This account shall include revenues from weighing, vending, and other automatic machines located at stations; from advertising at stations and on cars; from news companies or others for the privilege of operating news stands at stations and selling papers, periodicals, fruit, etc., on cars; from telephone companies for the privilege of installing and operating commercial telephones at stations; and from similar sources.*+

14.111 Parcel room receipts. This account shall include revenues from the operation of parcel rooms.**

14.112 Storage. This account shall include revenues from storage of freight and baggage.

To this account shall be charged authorized refunds of amounts received for such storage.*+

14.113 Demurrage. This account shall include revenue from penalties for delay in loading or unloading cars.

To this account shall be charged authorized refunds of amounts received as such penalties.**

14.114 Telephone and telegraph service. This account shall include revenues from commercial telephone and telegraph business transacted by it, when the expense of transacting such business can not be separated from the expense of conducting the railway service; also amounts received from telephone and telegraph companies, whether as proportion of earnings or otherwise, for the privilege of transacting a commercial telephone or telegraph business in offices along the carrier's lines, when the carrier furnishes some service of employees whose wages are included in its operating expenses.**

NOTE: When a telephone or telegraph company rents the telephone or telegraph line of the carrier and pays all expenses incident to its maintenance and operation, the rent received by the carrier shall be credited to account No. 204, "Miscellaneous rent income."

14.115 Rent of tracks and facilities. This account shall include amounts received as rent for use of tracks, electric lines, terminals, bridges, and other facilities whether a fixed charge per month or per year, a proportion of interest on valuation, a proportion of expenses incurred in maintaining and operating such properties, an amount based on car mileage, a charge per car or passenger, or any other arrangement, when such property is used jointly by the accounting and other carriers.*+

NOTE: Income from leased lines not operated by the lessor shall be included in account No. 203, "Income from lease of road."

14.116 Rent of equipment. This account shall include amounts received as rent for use of cars, electric equipment of cars, and other equipment, on whatever basis such rent may be determined."

This account shall include the gross amount received for rent of equipment and not the net balance between the amounts received and paid for rent of equipment.*+

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*For statutory citation, see note to § 14.00-1.

14.117 Rent of buildings and other property. This account shall include rents of buildings, land, and other property, such as depot and station grounds and buildings, general and other offices, rooms rented at stations, docks, wharves, ferry landings, section and other houses, etc., when such property is used in connection with operations. Receipts from other companies for privilege of attaching wires to the carrier's poles shall also be credited to this account.*+

NOTE: Income from rent of real estate, purchased or conducted as an outside investment, shall be included in account No. 205, "Net income from miscellaneous physical property," or No. 219, "Net loss on miscellaneous physical property."

14.118 Power. This account shall include all amounts earned for power sold if a carrier does not conduct a general power, light, or heat business.*+

NOTE: If a carrier conducts a general power, light, or heat business, such business shall be considered an auxiliary operation, and the revenues earned therefrom shall be credited to a separate account. The expenses of conducting such auxiliary operations shall be excluded from the operating expenses of the railway by means of the several accounts entitled "Other operations-Cr." The revenues and expenses of these operations shall be included in income accounts No. 202, "Auxiliary operations-Revenues," and No. 214, "Auxiliary operations-Expenses." (See § 14.0-2 of the general instructions for operating expenses.)

14.119 Miscellaneous. This account shall include all revenues derived from operations other than transportation and not includible in the foregoing revenue accounts.*†

GENERAL INSTRUCTIONS-INCOME ACCOUNTS

14.2-1 Income accounts defined. Income accounts are accounts designed to show the total amount of money that a company receives or becomes entitled to receive from its transportation and other operations during a stated period, the returns upon investments accrued during the period, the disbursements and the obligations incurred that affect the amounts so received or accrued, the disposition or allocation of the income accrued, and the net balance of income (or loss) carried to the Profit and Loss Account.

Where the title and definition of an income account clearly indicate that it is a summary of other accounts, it is not required that a special ledger account shall be kept under such a title to include the balances from the accounts usually carried in the ledger, but in such case the titles of the subaccounts in the ledger shall give a reference by number or title, or both, to the account prescribed herein of which they are subdivisions.*††

††In §§ 14.2-1 to 14.2-4, inclusive, the numbers to the right of the dash correspond with the respective general instruction numbers in Uniform system of accounts for electric railways (income accounts), Interstate Commerce Commission, May 28, 1914. Cross references to accounts are made by citing the account number, e. g., account No. 209, instead of the corresponding section number (§ 14.209).

14.2-2 Delayed items. Delayed items are items representing transactions which occurred before the current year. When no provisions have been made through entries in the accounts of this classification for anticipating delayed items chargeable or creditable to Income, and the amount of any such item is relatively so large that its inclusion in the accounts for a single year would seriously distort

*For statutory citation, see note to § 14.00-1.

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