UNIFORM CLASSIFICATION OF ACCOUNTS 
 
 WATER CORPORATIONS 
 
 s 
 
 302 
 517 
 
 PRESCRIBED BY THE 
 
 RAILROAD COMMISSION 
 
 STATE OF CALIFORNIA 
 
 Adopted October 23, 1912 Effective January 1, 1913 
 
 
 
 
 SAN FRANCISCO, C ALT !<>];% A 
 
 FIUE.M) \VM. Iitrif.ARDSON, S i ; I'KUI v 1 1.- v DKVI- OF STATE PRINTING 
 
 SACEAMENTO, CAI.IFOENIA 
 1912
 
 UNIFORM CLASSIFICATION OF ACCOUNTS 
 
 WATER CORPORATIONS 
 
 PRESCRIBED BY THE 
 
 RAILROAD COMMISSION 
 
 STATE OF CALIFORNIA 
 
 Adopted October 25, 1912 Effective January 1, 1913 
 
 SAN FRANCISCO, CALIFORNIA 
 
 FRIEND WM. Ki< IIAKDSOX. SUPERINTENDENT OF STATE PRINTING 
 
 SACRAMENTO, CALIFORNIA 
 1912
 
 RAILROAD COMMISSION OF CALIFORNIA. 
 
 JOHN M. ESHLEMAX, President Commissioner 
 
 H. D. LOVELAXD Commissioner 
 
 ALEXANDER GORDON Commissioner 
 
 EDWIN O. EDGERTOX Commissioner 
 
 MAX THELEX. Attorney Commissioner 
 
 CHARLES R. DETRICK, Secretary.
 
 UNIfORM CLASSIflCATION OP ACCOUNTS fOR 
 WATER CORPORATIONS. 
 
 Approved October 25, 1912. 
 
 T All Water Corporations: 
 
 This uniform system of accounts for water corporations is established 
 and issued by the Railroad Commission of the State of California in 
 accordance with provisions of section 48 of law of 1911. known as the 
 "Public Utilities Act," in effect March 23, 1912. 
 
 Section 48. ' ' The Commission shall have power to establish a system 
 of accounts to be kept by the public utilities subject to its jurisdiction, 
 or to classify said public utilities and to establish a system of accounts 
 for each class, and to prescribe the manner in which such accounts shall 
 be kept. It may also in its discretion prescribe the forms of accounts, 
 records and memoranda to be kept by such public utilities, including 
 the accounts, records and memoranda of the movement of traffic as well 
 as the receipts and expenditures of moneys, and any other forms, 
 records and memoranda which in the judgment of the Commission may 
 be necessary to carry out any of the provisions of this act. The system 
 of accounts established by the Commission and the forms of accounts, 
 records and memoranda prescribed by it shall not be inconsistent, in 
 the case of corporations subject to the provisions of the act of congress 
 entitled 'An act to regulate commerce,' approved February fourth, 
 eighteen hundred and eighty-seven, and the acts amendatory thereof 
 and supplementary thereto, with the systems and forms from time to 
 time established for such corporations by the Interstate Commerce Com- 
 mission, but nothing herein contained shall affect the power of the 
 Commission to prescribe forms of accounts, records and memoranda 
 covering information in addition to that required by the Interstate 
 Commerce Commission. The Commission may, after hearing had upon 
 its own motion or upon complaint, prescribe by order the accounts in 
 which particular outlays and receipts shall be entered, charged or 
 credited. Where the Commission has prescribed the forms of accounts, 
 records or memoranda to be kept by any public utility for any of its 
 business, it shall thereafter be unlawful for such public utility to keep 
 any accounts, records or memoranda for such business other than those 
 so prescribed, or those prescribed by or under the authority of any other 
 state or of the United States, excepting such accounts, records or memo- 
 randa as shall be explanatory of and supplemental to the accounts, 
 records or memoranda prescribed by the Commission."
 
 4 CLASSIFICATION OF ACCOUNTS, WATER CORPORATIONS. 
 
 Section 1. (x) "The term 'Water Corporation' when used in this 
 act. includes every corporation or person, their lessees, trustees, receivers 
 or trustees appointed by any court whatsoever, owning, controlling, 
 operating or managing any water system for compensation within this 
 State." 
 
 For the purpose of this system of accounts, water corporations are 
 divided into three classes as follows: 
 
 Class A Corporations having average annual operating reve- 
 nues exceeding $100,000. 
 
 Class B Corporations having average annual operating reve- 
 nues less than $100,000, and more than $25,000. 
 
 Class C Corporations having average annual operating reve- 
 nues less than $25,000. 
 
 Any corporation in Classes B and C may keep the more extended 
 division or subdivision of any or all the accounts shown herein; if 
 desired, further refinements or extensions of the scheme of accounts to 
 meet the needs of individual corporations may be made by subdividing 
 the accounts herein established, provided that the integrity of the 
 accounts is not impaired and that the titles and purposes of any accounts 
 so raised shall first be filed with the Railroad Commission. 
 
 All accounts shall be kept by the double-entry method by all corpora- 
 tions or persons within the scope of this order. This requirement, 
 however, is not intended to apply to purely statistical accounts. 
 
 The first entry relating to anything for which a charge or a credit 
 is made to any fixed capital or investment account shall describe the 
 property in respect of which the entry is made with such fullness and 
 particularity as to enable its identification. 
 
 All charges made to fixed capital or other property account with 
 respect to any property acquired on or after January 1, 1913, shall be 
 the actual money costs of the property. When the consideration given 
 and for which a charge is made to any fixed capital or other property 
 account is anything other than money, the actual consideration shall be 
 fully described in the entry, to enable identification, and the amount 
 charged shall be the actual money value of the consideration at the time 
 of the transaction. 
 
 Discounts upon securities and other commercial papers issued are to 
 be provided for in other accounts and must in no case be included as 
 part of the cost of any property acquired. 
 
 The figures and letters prefixed to the titles of accounts in the follow- 
 ing definitions and instructions are solely for convenience of reference, 
 and are not to be considered as part of the title or definition. 
 
 All corporations are hereby required on and after January 1. 1913, 
 to keep their accounts in accordance with instructions herein provided.
 
 CLASSIFICATION OF ACCOUNTS, WATER CORPORATIONS. 5 
 
 All corporations operating in more than one incorporated city or 
 partly within and partly without an incorporated city, shall show r sepa- 
 rate profit and loss accounts for each incorporated city, and a single 
 profit and loss account for all territory not within an incorporated city. 
 
 All general expense common to the entire system, together with the 
 expenses and repairs of the pumping, distributing and transmission 
 systems, shall be treated as common to the entire system and pro-rated 
 to the several incorporated cities or other territory on some equitable 
 basis in accordance with the benefits derived. 
 
 NOTE. Corporations will file with the Commission a statement in complete detail 
 and full explanation supporting the basis on which a pro-rate of expenses is made. 
 
 In prescribing this system of accounts, the Commission does not bind 
 itself to approve any item set out in any account, either as to amount 
 or character, for rate-fixing purposes or when authorizing the issuance 
 of securities. The prescribed system of accounts is designed to set out 
 the facts in connection with the income, expenditures, etc., and there- 
 from the Commission will determine, when engaged in fixing rates or 
 approving issues of securities, just what consideration shall be given to 
 the various items in the several accounts. 
 
 RAILROAD COMMISSION OF THE STATE OF 
 CALIFORNIA. 
 
 By CHARLES R. DETRICK, Secretary. 
 Dated: October 25, 1912. 
 Commercial Building, 
 
 San Francisco, California.
 
 6 CLASSIFICATION OP ACCOUNTS, WATER CORPORATIONS. 
 
 BALANCE SHEET ACCOUNTS. 
 Definitions and Instructions. 
 
 Balance Sheet Accounts defined. By Balance Sheet Accounts are 
 meant those titles under which the ledger accounts are combined and 
 summarized to show the assets, liabilities, and profit or loss of the 
 business at a given time. Where the title and definition of a Balance 
 Sheet Account clearly indicate that it is a summary of other accounts, 
 it is not required that a special ledger account shall be raised under 
 such a title to include the balance, from the accounts usually carried on 
 the ledger. 
 
 Assets. The term Assets is an accepted designation of the wealth 
 or money 's worth, either actual or nominal, in the possession or control, 
 or at the disposal of the individuals, firms, corporations, or govern- 
 ments, when that wealth or money's worth is considered as resources 
 for satisfying the obligation of debtors to creditors, and those of trus- 
 tees to their principals ; and as a basis of the property rights of owners 
 or stockholders, or as resources classified according to their character, 
 their relation to the principal purpose of the business or enterprise in 
 which they are utilized, their form, or the time when and conditions 
 under which they become owned or controlled by or at the disposal of 
 the individual, firm, corporation or government utilizing or disposing 
 of them. 
 
 Corporate deficit is the excess of the expense and deductions over 
 revenue or income, and represents the amount due to the corporation 
 by its proprietors, or proprietary interests, for the replacement of lost 
 invested capital. 
 
 Liabilities. In accounting, Liabilities are primarily amounts of 
 money or quantities of other specified forms of wealth which persons, 
 firms, corporations, or governments are under obligation to pay or 
 deliver, or for whose custody, use, payment, or expenditure they are 
 responsible, or amounts representing losses or depreciation of assets 
 incurred but not realized. 
 
 Corporate surplus is the excess of revenue or income over expenses 
 and deductions, or portions of the property rights or equity of the 
 proprietors. 
 
 ASSET ACCOUNTS. 
 
 1. FIXED CAPITAL INSTALLED PRIOR TO JANUARY 1, 1913 : 
 
 In this account (on the balance sheet statement) shall be shown the 
 total of the balance in the ledger accounts representing the corpora- 
 tion's fixed capital which was installed prior to January 1, 1913, and 
 which is still in service at date of the balance sheet. (See text of this 
 account under Account No. C-23, "Fixed Capital Accounts.")
 
 CLASSIFICATION OF ACCOUNTS, WATER CORPORATIONS. 7 
 
 2. FIXED CAPITAL INSTALLED SINCE DECEMBER 31, 1912: 
 
 This account is a summary of the accounts representing the corpora- 
 tion's fixed capital installed since December 31, 1912, and should show 
 the cost of the fixed capital which has been installed since that date 
 and is still in service at the date of the balance sheet. (For primary 
 fixed capital accounts see Accounts C-l to C-4, "Intangible Capital," 
 and Accounts C-5 to C-24, "Tangible Capital Accounts.") 
 
 3. CASH AND DEPOSITS: 
 
 A. Cash. Charge to this account the amount of current funds avail- 
 able for use on demand in the hands of financial officers and agents, 
 or deposited in banks or with trust companies, and cash in transit for 
 which agents receive current credit. 
 
 B. Special Deposits. Charge to this account special deposits to pay 
 declared dividends or matured interest, cash realized from the sale of 
 securities held for disbursement when the purposes for which the 
 securities are sold are accomplished; special deposits other than in 
 sinking funds for the payment of debts and interest, not matured; 
 also money and securities deposited to secure the performance of 
 contracts, and other deposits of a special nature not provided for 
 elsewhere. 
 
 4. NOTES RECEIVABLE: 
 
 Charge to this account the cost of all collectible obligations in the 
 form of Notes Receivable or other similar evidences of money receivable 
 on demand or within a time not exceeding one year. This does not 
 include interest coupons. Time loans that mature more than one year 
 after date of issue shall be considered as investments and shall not be 
 included in this account. 
 
 5. ACCOUNTS RECEIVABLE: 
 
 Charge to this account all amounts owing to the corporation upon 
 accounts with solvent concerns other than banks, also the cost of all 
 accounts and claims (except notes or negotiable bills) upon which 
 responsibility is acknowledged by solvent concerns or which are suffi- 
 ciently secured to be considered good, and of all judgments against 
 solvent concerns where the judgment is not appealable or suspended 
 through appeal. 
 
 The following sub-accounts are provided: 
 
 A. Accounts with System Corporations. Include in this account 
 amounts due from proprietary, affiliated, controlled, and controlling 
 corporations on open accounts other than those provided for in Account 
 No. 8-B, "Advances to System Corporations for Construction, Equip- 
 ment and Betterments."
 
 8 CLASSIFICATION OF ACCOUNTS, WATER CORPORATIONS. 
 
 B. Due from Consumers and Agents. Include in this account 
 amounts due from consumers and agents for services rendered or billed. 
 
 NOTE. Accounts with consumers and agents shall be kept in such manner as will 
 enable corporations to show amounts due from consumers and agents for current 
 accounts, for delinquent accounts, and amounts due from consumers whose service 
 has been suspended. 
 
 C. Miscellaneous Accounts Receivable. Include in this account 
 amounts due from employees for working funds advanced, and amounts 
 due from miscellaneous debtors upon open accounts considered 
 collectible. 
 
 6. INTEREST AND DIVIDENDS RECEIVABLE: 
 
 Charge to this account all interest considered collectible accrued but 
 not yet collected upon bonds, notes or other commercial paper, held by 
 or for the benefit of the corporation; all dividends declared or guar- 
 anteed by solvent concerns but not yet collected, the right to which is 
 in the corporation. 
 
 7. OTHER CURRENT ASSETS: 
 
 Charge to this account the cost of all current assets which are not 
 includible under any of the foregoing accounts. By Current Assets 
 are meant only those things that are readily convertible into money 
 and which are held not as investments, but with the intent of being 
 presently converted into money. 
 
 8. INVESTMENTS: 
 
 This account includes the cost of all properties acquired or held not 
 for use in present operations, but as a means of obtaining and exer- 
 cising control over other corporations, or for income to be derived from 
 them, or for a rise in value, or for devotion to future operations, and 
 for securing other business advantages that may seem possible through 
 their acquisition and possession. 
 
 It is subdivided as follows : 
 
 A. Securities of Other Corporations. Include in this account the cost 
 of stocks and bonds and other evidences of indebtedness issued by other 
 companies. This account does not include any stocks, bonds, or other 
 evidences of indebtedness issued or assumed by the accounting corpora- 
 tion. Class A corporations will subdivide this account so as to show 
 separately the cost of 
 
 a. Stocks of System Corporations. 
 
 I. Funded Debt of System Corporations. 
 
 c. Miscellaneous Stocks. 
 
 d. Miscellaneous Bonds. 
 
 NOTE. In the annual reports to the Railroad Commission, investments will be 
 required 'to be classified so as to show those held subject to a lien of some character 
 and those held free of all lien or pledge.
 
 CLASSIFICATION OF ACCOUNTS, WATER CORPORATIONS. 9 
 
 B. Advances to Syston ('urix>i-<iti<>nx for Construction, Equipment and 
 Betterments. Include in this account advances to proprietary, affiliated, 
 controlled and controlling corporations to enable such corporations to 
 pay for construction, equipment, additions, and betterments, when such 
 advances are of a permanent nature (i. e., where there is not an under- 
 standing that the advances are to be repaid within one year) or when 
 it is understood and intended that reimbursement shall be made by the 
 issue of the securities of the debtor corporation. 
 
 NOTE. Temporary advances on open accounts to system corporations and such 
 advances for purposes other than construction, equipment, additions and betterments 
 .shall be included in accounts receivable. 
 
 ( '. Miscellaneous Investments. Include in this account all other in- 
 vestments of a permanent nature in intangibles and in physical property 
 not held for the operation of the company's plant as a water system. 
 
 NOTE. In the annual reports to the Railroad Commission, investments will be 
 required to be classified so as to show those held subject to a lien of some character 
 and those held free of all lien or pledge. 
 
 9. MATERIALS AND SUPPLIES : 
 
 Charge to this account the cost (including transportation) of all 
 materials and supplies acquired, and the value of discarded equipment 
 and of equipment, materials, and supplies returned to store, regardless 
 of whether the same are intended to be consumed in construction or in 
 operation, or later to be sold. Where discounts recovered through 
 prompt payment are not credited to the particular bills, the cost at 
 which such materials and supplies shall be charged shall be the invoice 
 cost, and any discounts recovered through prompt payment of bills for 
 such materials and supplies shall be credited to Account No. C-20, 
 "Interest During Construction," or to Account No. E 45, "Undis- 
 tributed Adjustments-Balance," according as such materials and sup- 
 plies are intended for construction or for operation. 
 
 When the use of any tangible fixed capital is discontinued it shall be 
 treated as retired; the original cost of such capital shall be credited to 
 the fixed capital account in which carried, and its value, if any, as 
 second-hand material or junk shall be charged to this account, or an 
 appropriate sub-account. If such value is not known and cannot 
 readily be determined, it shall be estimated, and errors in such esti- 
 mates, when determined, shall be adjusted through the accounts in- 
 volved during the year in which the estimates were made ; if later, then 
 Hi rough the "Corporate Surplus or Deficit" account. 
 
 Inventories of materials and supplies shall be taken at least annually, 
 and any shortages or overages disclosed by such inventories shall be 
 credited or debited to this account and debited or credited to Account 
 No. E-45, "Undistributed Adjustments-Balance," or to Account No. 4, 
 "Supply Expense" (if that account is used), in case such shortages or
 
 10 CLASSIFICATION OF ACCOUNTS, WATER CORPORATIONS. 
 
 o \vraires cannot be assigned to specific accounts. Shortages may, how- 
 vt-r. be charged directly to "Corporate Surplus or Deficit." Where 
 materials and supplies from stores have been used in construction, and 
 it is estimated that part of the shortage or overage is due to such 
 materials and supplies having been actually applied to construction, a 
 proper proportion of the inventory shortage or overage should be 
 charged or credited to Account No. C-19-E, " Miscellaneous Construc- 
 tion Expenditures," directly or through Account No. 4, "Supply Ex- 
 pense. ' ' 
 
 10. SINKING FUNDS: 
 
 Charge to this account the amount of cash and the cost of live securi- 
 ties in the hands of trustees of sinking and other funds for the purpose 
 cf redeeming outstanding obligations, also amounts deposited with such 
 trustees on account of mortgaged property sold. A separate account 
 shall be raised for each sinking fund. When any security of the same 
 issue as that for which a sinking fund is created is acquired through 
 the operation of the sinking fund, the par value of the security shall be 
 charged to the liability account to which it stands credited and not to 
 the sinking fund account. 
 
 11. OTHER SPECIAL FUNDS: 
 
 Charge to this account the amount of cash and the cost of securities 
 held in trust by or for the corporation in insurance funds, pension 
 funds, hospital funds, and other similar special funds not provided for 
 in the preceding accounts. A separate account shall be raised for each 
 fund. 
 
 NOTE. Securities issued or assumed by the corporation may be included among 
 the assets of special funds only when they represent the actual investment of funds 
 held in trust and when the fund so held would share in the distribution of assets 
 covered by the securities in case of foreclosure or dissolution. 
 
 12. TREASURY SECURITIES : 
 
 Charge to this account the par value of all stocks and bonds which 
 have been authorized and issued by the corporation or assumed by it 
 and held by the Treasurer or other fiscal agent of the corporation for 
 its benefit. When such securities are sold their par value shall be 
 credited to this account. 
 
 13. PREPAID EXPENSES: 
 
 A. Prepaid Bents. Charge to this account the amount of rents paid 
 in advance of the enjoyment of the term. As the term is consumed, 
 credit this account at monthly intervals and debit the appropriate rent 
 account with the amount applicable to the month. 
 
 B. Prepaid Taxes. Charge to this account the excess of taxes paid 
 over the amount properly chargeable to Income or other accounts as 
 shown by the debit balance in the Tax Liability account. (See Account 
 No. 26. "Taxes Accrued.")
 
 rvnoN OF A<A-orxTs. YVATKK CORPORATIONS. 11 
 
 (". /'/> /></iW Insuratn't. \Yhen premiums on insurance policies are 
 paid in advance of their neevnal. the amount prepaid shall be charged 
 to this account. As such premiums accrue, they shall be credited at 
 monthly intervals to this account and charged to the appropriate 
 expense aeeonnt. 
 
 D. Otln / /'/< /!</////( ~nts. When prepayments are made for anything: 
 other than as provided for in the three preceding accounts, the amount 
 of such prepayments shall be included in this account. 
 
 14. UN-AMORTIZED DISCOUNT ON SECURITIES AND EXPENSE: 
 
 AY hen capital stock, funded debt securities and other evidences of 
 indel'tedness are disposed of for a consideration whose cash value is 
 less than the sum of the par value of the securities or other evidences 
 pf indebtedness and the interest thereon accrued at the time the 
 transfer takes place, the excess of such sum of the par value and 
 arrrued interest over the cash value of the consideration received shall 
 be charged to this account. To this account shall also be charged all 
 expense connected with the issue and sale of evidences of debt, such 
 'es for drafting mortgages and trust deeds, fees and taxes for 
 dins mortgages and trust deeds; cost of engraving and printing 
 bonds, certificates of indebtedness, and other commercial paper having 
 a life of more than one year ; fees paid trustees, provided for in mort- 
 gages and trust deeds; fees and commissions paid underwriters and 
 brokers for marketing such evidences of debt, and other like expense. 
 At or before the close of each fiscal period thereafter, a proportion of 
 such discount and expense on securities representing indebtedness 
 based upon the life of the security to maturity shall be credited to this 
 account and eharged to Account No. 109, "Amortization of Debt Dis- 
 count and Expense." Such discount and expense may, if desired, be 
 amortized more rapidly through charges of all or any part of it, either 
 at the time of issue or later, to Account No. 114-G, "Other Deductions 
 from Surplus." 
 
 15. OTHER SUSPENSE: 
 
 This account includes all debits not elsewhere provided for and the 
 proper final disposition of which is uncertain. It will include all such 
 matters as expense of preliminary surveys, plans, investigations, etc., 
 made tor determining the feasibility of projects under contemplation. 
 Should any such project later be carried to completion, such amounts 
 shall be credited to this account and charged to the proper capital 
 account or accounts; should it be abandoned, such amounts shall be 
 charged to "Corporate Surplus or Deficit." 
 
 Wh.-n the proper disposition of any matter charged to this account 
 is determined, it shall be credited to this account and charged to the 
 appropriate account or accounts.
 
 12 CLASSIFICATION OF ACCOUNTS, WATER CORPORATIONS. 
 
 16. CONSTRUCTION WORK IN PROGRESS: 
 
 In this account may be included amounts expended upon plant that 
 is in process of construction under estimates or work orders but is not 
 ready for service at the date of the balance sheet. It includes, also, 
 such proportion of plant supervision expenses, engineering expenses, 
 tool expenses, supply expenses, and general expenses as may be properly 
 chargeable to the construction work included under this account. 
 
 When the work is completed on any job, the cost of which has been 
 included in this account, the sub-account covering that job shall be 
 credited with the amount at which it stands charged, and the appro- 
 priate fixed capital or other accounts shall be concurrently charged; 
 but in no case shall any expenditure be carried in this account beyond 
 the close of the fiscal year next succeeding that in which the expendi- 
 ture is made. 
 
 17. CORPORATE DEFICIT: 
 
 Under this head should be shown the debit balance, if any, in the 
 "Corporate Surplus or Deficit Account." 
 
 LIABILITY ACCOUNTS. 
 
 18. CAPITAL STOCK: 
 
 To this acount should be credited the par value of the capital stock 
 issued and outstanding, including any that may be in the corporation's 
 treasury, or held in trust for it, or in sinking or other funds. 
 
 19. INSTALLMENTS ON STOCK SUBSCRIPTION: 
 
 To this account should be credited the amounts received for capital 
 stock to be paid for in installments, until such stock is issued. 
 
 20. FUNDED DEBT: 
 
 The funded obligations of the Corporation shall be divided into 
 classes, each class agreeing in the following four characteristics : 
 
 1. Mortgage or other lien, or security therefor. 
 
 2. Rate of Interest. 
 
 3. Interest Date. 
 
 4. Date of Maturity. 
 
 A separate sub-account shall be opened for each mortgage, note, or 
 other lien or security, and no accounts or debts not agreeing in the 
 characteristics as above shall be included in the same sub-account. 
 
 To the proper sub-account shall be credited when issued the total 
 receipts from the sale of evidence of indebtedness secured by the mort- 
 gage, etc. The entry in any account shall show also the purpose for 
 v.hich funded debt is issued and shall make intelligible reference to 
 the book, page, and account wherein are shown any discount or pre- 
 mium realized on the amount issued or assumed.
 
 CLASSIFICATION OF ACCOUNTS, WATER CORPORATIONS. 13 
 
 If the consideration received for the indebtedness is other than money 
 the entry shall show to whom issued and shall describe with sufficient 
 particularity to identify the actual consideration received. 
 
 If the issue in any case is to an agent of an undisclosed principal, 
 the name and address of agent and the fact of his agency must be 
 shown in the entry; also short time securities or notes and mortgages 
 payable which are due at a date over one year in the future. 
 
 21. RECEIVER'S CERTIFICATES: 
 
 AYhen any receiver acting under the orders of a court of competent 
 jurisdiction is in possession of the property of the corporation and 
 under the orders of such court issues certificates of indebtedness charge- 
 able upon such property, the par value of such certificates shall be 
 credited to this account. Interest accruing upon such certificates shall 
 also be credited monthly to this account. 
 
 22. ADVANCES FROM SYSTEM CORPORATIONS FOR CONSTRUCTION, EQUIP- 
 
 MENT AND BETTERMENTS: 
 
 Civdit this account with advances from proprietary, affiliated, con- 
 trolled and controlling corporations to enable the accounting corpora- 
 tion to pay for construction, equipment, additions and betterments 
 when such advances are of a permanent nature (i. e., where there is not 
 an understanding that the advances are to be repaid within one year) 
 or when it is understood and intended that a reimbursement shall be 
 made by the issue of the securities of the debtor corporation. 
 
 NOTE. Temporary advances on open accounts for system corporations and such 
 advances for purposes other than construction, equipment, additions and betterments 
 shall be included in accounts payable. 
 
 23. NOTES PAYABLE: 
 
 AY hen any note or draft which matures not later than one year after 
 date of issue or of demand is issued or the primary liability thereon 
 assumed by the corporation, the par value thereof shall be credited to 
 this account and when it is paid it shall be charged to this account and 
 credited to "Cash" or other suitable account except secured notes 
 proper to be included in Account No. 20, "Funded Debt." 
 
 24. ACCOUNTS PAYABLE : 
 
 A. Arcoutitx with .sv/x/o/<. corporations. Credit to this account the 
 amount.^ nwinir to proprietary, affiliated, and controlled or controlling 
 corporations on open accounts other than those provided for in Account 
 No. '2'2. "Advances from System Corporations for Construction, Equip- 
 ment and Betterments." 
 
 B. Audited vouchers and ivages unpaid. Credit to this account the 
 amount of audited vouchers or accounts and audited payrolls unpaid 
 on the date of the balance sheet. Include also the amount of unclaimed
 
 14 CLASSIFICATION OP ACCOUNTS, WATER CORPORATIONS. 
 
 wages and outstanding pay and time cheeks issued in payment of 
 wages. 
 
 C. Consumer's Deposits. Credit to this account as such deposits are 
 made all cash deposited with the corporation by consumers for water 
 service as security for the payment of bills. Deposits refunded should 
 be 'charged to this account and credited to cash. Deposits applicable 
 to uncollectible water bills should be credited to the account of the 
 consumer and debited to this account. 
 
 D. Miscellaneous Accounts Payable. Credit to this account all 
 amounts owing to miscellaneous creditors on open accounts and not 
 provided for elsewhere. 
 
 25. INTEREST ACCRUED: 
 
 Credit to this account at the close of each month the interest accrued 
 during the month upon the interest-bearing indebtedness, issued or 
 assumed by the corporation, except interest on judgments and receivers ' 
 certificates. When such interest is paid it should be charged to this 
 account and credited to "Cash" or other suitable account. The interest 
 accruing on any judgment against the corporation or upon any 
 receivers' certificates shall be credited to the account to which such 
 judgment or receivers' certificates stand credited. 
 
 26. TAXES ACCRUED: 
 
 To this account should be credited taxes that have accrued but are 
 not yet due. The full amount of taxes for the year should be estimated 
 and charged equally (one twelfth) to the expenses (Account No. E-50) 
 of each month, with corresponding credit to this account ; as soon as the 
 amount of the taxes for the period is known, the accounts should be 
 adjusted to conform. When taxes become due and are vouchered. they 
 should be charged to this account. 
 
 27. DIVIDENDS DECLARED : 
 
 When any dividend is declared, the amount of the dividend shall be 
 credited to this account and here remain until it is paid, when the 
 amount of the payment shall be charged to this account and credited 
 to "Cash" or other suitable account. 
 
 28. SERVICE BILLED IN ADVANCE : 
 
 When bills are made for water to be furnished in future months, and 
 the amount of the bills is included in "Accounts Receivable," but not 
 in the revenue accounts, the proportion of the bills applicable to future 
 months shall be credited to this account. As the term for which the 
 bills are made expires, the appropriate revenue account should be 
 credited and this account debited with the amount applicable to the 
 current month.
 
 CLASSIFICATION OF ACCOUNTS, WATER CORPORATIONS. 15 
 
 29. RESERVE FOR ACCRUED DEPRECIATION: 
 
 Credit to this account or to appropriate sub-accounts such amounts 
 as are concurrently charged to Account No. E-52, "Depreciation of 
 Plant and Equipment. ' ' Charge to this account or to appropriate sub- 
 accounts (except as prescribed in the notes hereunder) the realized 
 depreciation in the several classes of tangible fixed capital; that is, the 
 difference between the original cost (estimated if not known) of prop- 
 erty relinquished, retired, or destroyed, and the value of any salvage 
 recovered. Charge also to this account such part of the expenditures 
 for repairs concurrently credited to Account No. E-49, "Repairs 
 Charged to Reserves Cr." as may have been provided for in estimat- 
 ing the rate of depreciation. (See Account No. E-52, "Depreciation 
 of Plant and Equipment.") 
 
 NOTE A. When any property is retired which was installed prior to the raising 
 of the "Reserve for Accrued Depreciation," only such portion of the realized depreci- 
 ation shall be charged to the reserve as is due to life in service after the establish- 
 ment of the reserve ; this portion may be estimated on the basis of the proportion 
 which the life in service of the property in question after the establishment of the 
 reserve bears to its entire life in service. The remainder of the realized depreciation 
 shall be charged to Account No. 114-B, "Realized Depreciation Not Covered by Re- 
 serves," unless the corporation has on its books a depreciation reserve accumulated 
 prior to, the establishment of the prescribed depreciation rules, in which case such 
 other remainder, or so much of it as may be provided for, shall be charged to such 
 other reserve account. 
 
 NOTE B. When any property is retired whose book value has been reduced by 
 writing off estimated depreciation, only that part of the realized depreciation which 
 has not already been written off shall be charged as above to the "Reserve for 
 Accrued Depreciation," or Account No. 114-B, "Realized Depreciation Not Covered by 
 Reserves." 
 
 NOTE C. When any property is retired whose book value is greater than the 
 known or estimated cost, such excess shall be charged to "Corporate Surplus or 
 Deficit" and the realized depreciation shall be charged as elsewhere directed. 
 
 NOTE D. If any property is sold for more than its original cost, the amount of 
 depreciation, if any, accrued and credited to a reserve in respect thereof, shall be 
 determined as accurately as possible and chargo4 to such reserve. The sum of the 
 amount so charged and the excess of the selling price over the cost of the property 
 shall be credited to Account No. 115, "Miscellaneous Additions to Surplus." 
 
 30. RESERVE FOR AMORTIZATION OF INTANGIBLE CAPITAL: 
 
 Credit to this account such amounts as are concurrently charged to 
 Account No. 111-B, "Amortization of Landed Capital," and to Ac- 
 count No. E-51, "Amortization of Franchises and Patents." Charge 
 to this account when any franchise, patent, or landed capital expires 
 or is relinquished, the amount at which it stood charged in the corpor- 
 ation's fixed capital accounts, or such amount as has been previously 
 credited to this reserve in respect of such capital if the amortization 
 has not been fully accomplished. That portion of its cost which has 
 not been covered by credits to the reserve or previously written off shall 
 be charged to "Corporate Surplus or Deficit" account as "Amortization 
 Unprovided for Elsewhere." 
 
 31. UNAMORTIZED PREMIUM ON DEBT: 
 
 When funded debt securities or other evidences of indebtedness 
 issued or assumed by the corporation are disposed of for a considera-
 
 16 CLASSIFICATION OP ACCOUNTS, WATER CORPORATIONS. 
 
 tion whose cash value is greater than the sum of the par value of such 
 securities or other evidences of indebtedness and the interest thereon 
 accrued at the time the transfer takes place, the excess of the cash value 
 of such consideration received over the sum of the par value of the 
 securities or other evidence of indebtedness and the accrued interest 
 shall be credited to this account. At monthly intervals thereafter a 
 proportion of such premium based upon the life to maturity of the 
 security or other evidence of indebtedness shall be charged to this 
 account and credited to Account No. 110, "Amortization of Premium 
 on Debt Cr. ' ' in the Income account. 
 
 32. CASUALTY AND INSURANCE RESERVES: 
 
 When any admitted liability arises because of loss or damage to the 
 property of others, or of injuries to employees or other persons, the 
 amount of the liability may (if not previously provided for by insurance 
 or self -insurance) be charged to the appropriate operating expense or 
 other accounts and credited to this account, against which (in such case) 
 the actual cost of satisfaction of the liability shall be charged when 
 the matter is determined. If the extent of the liability can not be 
 ascertained promptly after the liability arises, it may be estimated as 
 accurately as practicable for the purpose of determining the immediate 
 charge to the expense or other appropriate account, in which case the 
 matter shall be adjusted when the extent of the liability is definitely 
 ascertained. If the loss is of such character that it is in whole or in 
 part indemnifiable under any contract of insurance carried by the 
 corporation, the indemninable portion of the loss shall be charged to 
 the insurer and credited to "Casualty and Insurance Reserves." Also 
 credit to this account the amounts charged to operating expense Ac- 
 count Xo. E-42, "Insurance," to cover self -carried risks. 
 
 33. INCOME INVESTED SINCE DECEMBER 31, 1912, IN FIXED CAPITAL: 
 Credit to this account such amounts from income or surplus as are 
 
 definitely set aside to cover expenditures for extensions or improve- 
 ments of the fixed capital of the accounting corporation ; such appro- 
 priations include those made discharging the principal (less the dis- 
 count, if any, suffered at the time of sale) of any obligations incurred 
 in the acquisition of any property whose cost is carried in the fixed 
 capital accounts. The amounts credited to this account shall be con- 
 currently charged to "Corporate Surplus or Deficit" account as 
 "Appropriations to Reserves." 
 
 This account should not include temporary appropriations for the 
 acquisition of property the cost of which is intended later to be met by 
 an issue of securities, nor appropriations for the payment of obligations 
 which are intended to be replaced by new issues.
 
 CLASSIFICATION OF ACCOUNTS, WATER CORPORATIONS. 17 
 
 34. RESERVES INVESTED IN SINKING FUNDS: 
 
 Credit to this account appropriations from surplus specifically in- 
 vested or set aside in the hands of trustees for sinking and redemption 
 funds, including accretions to such funds. 
 
 35. OTHER RESERVES FROM INCOME OR SURPLUS: 
 
 Credit to this account all appropriations of income or surplus held 
 in reserve, other than appropriations invested in fixed capital since 
 December 31, 1912, and appropriations invested in sinking or redemp- 
 tion funds. A separate sub-account shall be raised for each reserve, 
 and the entries in such sub-accounts will be required to be shown sepa- 
 rately in the annual report to the Railroad Commission. 
 
 This account includes the unexpended balance, if any, of appropri- 
 ations intended to be invested in fixed capital, and such appropriations 
 to sinking or redemption fund reserves as are not specifically invested. 
 
 36. CORPORATE SURPLUS UNAPPROPRIATED : 
 
 Under this head should be shown the credit balance, if any, in the 
 ' ' Corporate Surplus or Deficit ' ' account. 
 
 FIXED CAPITAL ACCOUNTS. 
 
 FIXED CAPITAL DEFINED : 
 
 By the fixed capital of a corporation is meant the property, both' 
 tangible and intangible, which is devoted to the accomplishments of the 
 principal purposes of ite business and which has an expectation of life 
 in service of more than one year from date of installation in service 
 (exception being made in the case of hand tools and other small portable 
 tools that may be lost or stolen). 
 
 COST OF FIXED CAPITAL : 
 
 The term "Cost" as used in the texts for fixed capital accounts 
 means the original cost to the corporation. It includes not only the 
 costs of labor, materials and supplies directly employed or consumed 
 in the construction and installation of property classed as fixed capital, 
 but also the cost of preliminary plans and surveys and such portion of 
 the expenses for engineering and plant supervision and general expenses 
 as may be chargeable to the fixed capital accounts under an equitable 
 p]an for the apportionment of such expenses. 
 
 Intangible Capital. 
 
 C-l. ORGANIZATION : 
 
 Charge to this account all fees paid to governments for the privilege 
 of incorporation, and all office and other expenditures incident to organ- 
 izing the corporation or other enterprise and putting it in readiness to 
 do business. This includes the cost of preparing and distributing
 
 18 CLASSIFICATION OP ACCOUNTS, WATER CORPORATIONS. 
 
 prospectuses, the cost of soliciting subscriptions for stock (but not for 
 loans nor for the purchase of bonds or other evidences of indebtedness) . 
 cash fees paid to promoters, and the actual cash value at the time of 
 organization of securities paid to promoters for their services in organ- 
 izing the enterprise; counsel fees; cost of preparing and issuing 
 certificates of stock, and cost of procuring certificates of necessity from 
 state authorities, and like other costs. This account shall not include 
 any discounts upon stocks or other securities issued, nor shall it include 
 any costs incident to negotiating loans or selling bonds or other evidence 
 of indebtedness. 
 
 NOTE. Costs incident to preparing and filing certificates of authorization of in- 
 crease of capital stock, and to the negotiation and issue of stock thereunder, are 
 classed as additions. The cost of preparing and filing certificates of amendment of 
 articles of incorporation is classed as a betterment. The cost of preparing and filing 
 papers in connection with the extension of the term of incorporation or with reincor- 
 poration consequent upon reorganization shall be classed as a renewal. 
 
 C-2. FRANCHISES AND WATER RIGHTS : 
 
 Charge to this account the amount (exclusive of any tax or annual 
 charge) actually paid to the State, or to a political subdivision thereof, 
 as the consideration for the grant of such franchise or water right as 
 is necessary to the conduct of the corporation's water operations. If 
 any such franchise is acquired by assignment, the charge to this account 
 in respect thereof must not exceed the amount actually paid therefor 
 by the corporation to its assignor. 
 
 Any excess of the amount actually paid by the corporation over the 
 amount paid by the original grantee to the grantor of the franchise 
 shall be charged to Account No. 4, "Other Intangible Capital." If 
 any such franchise has a life of not more than one year after the date 
 when it is first exercised by the corporation, it shall not be charged to 
 this account but to the appropriate accounts in operating expenses (or 
 in Account No. 13-D, "Other Prepayments," if extending beyond the 
 fiscal year). 
 
 NOTE. Payments made to the State or to some subdivision thereof as a consider- 
 ation for granting an extension for more than one year of the life period of a 
 franchise are classed as renewals. Those made as a consideration for franchises or 
 extensions thereof covering additional territory to be operated as part of an existing 
 system are classed as additions. If the franchises cover separate and distinct new 
 plants the payments therefor are classed as original capital. Annual or more frequent 
 payments in respect of franchises must not be charged to this account but to the 
 appropriate tax or operating expense account. 
 
 C-3. PATENT RIGHTS: 
 
 Charge to this account the cost of all rights (having a life of more 
 than one year from the date when placed in service) acquired by the 
 corporation in or under valid patents granted by the United States to 
 inventors for inventions and discoveries which are necessary to the 
 economical conduct of the corporation's water operations. 
 
 NOTE. If a patent right is extended to cover a further period of time than that 
 covered by the original grant, the cost of such extension is classed as a renewal. A 
 patent right acquired for use in an existing system and necessary to the economical 
 operation thereof is classed as an addition.
 
 CLASSIFICATION OF ACCOUNTS, WATER CORPORATIONS. 19 
 
 C-4. OTHER INTANGIBLE CAPITAL: 
 
 Charge to this account the cost of all other intangible capital devoted 
 to water operations. Entries of charges to this account shall describe 
 the acquired property with sufficient particularity clearly to identify it, 
 and shall also show specifically the principal from whom acquired and 
 all agents representing such principal in the transaction ; also the term 
 of life of such property, estimated if not known, and if estimated, the 
 facts upon which the estimate is based. 
 
 Class B and C corporations may consolidate these four accounts, 
 carrying one account, " Intangible Capital." 
 
 TANGIBLE CAPITAL. 
 Landed Capital. 
 
 C-5. LAND DEVOTED TO WATER OPERATIONS : 
 
 Charge to this account the cost of the accounting corporation's landed 
 capital which is devoted to water operations as hereinbefore defined. 
 This includes land occupied by pumping plants and their appurtenances 
 and rights of way for transmission and distribution lines and other pipe 
 lines, where such rights have lives in excess of one year from the date 
 when such land is placed in service. Such cost includes, when assumed 
 or paid by the purchaser in its own behalf, cost of registration of title, 
 cost of examination of title, conveyancer 's and notary 's fees, purchasing 
 agent's commission or fees, or proportion of purchasing agent's salary, 
 taxes accrued to date of transfer of title, and all liens upon the title 
 acquired; also cost of obtaining consents and payments for abutting 
 damages. 
 
 NOTE A. Cost of buildings and other improvements must not be included in this 
 account. 
 
 NOTE B. If at the time of acquisition of an interest in lands it extends to build- 
 ings or other improvements thereon, which improvements are devoted by the corpora- 
 tion to its water operations, and the contract of acquisition does not determine the 
 price of such improvements, they shall be appraised at their fair cash value for use 
 in such operations, and such appraised value shall be charged to the appropriate 
 structures account, and excluded from the account "Land Devoted to Water Opera- 
 tions." If such improvements are not devoted to water operations but are devoted 
 to other operations or held as investments, the cost (or appraised value if the cost 
 is not determined in the contract of acquisition) shall be charged to the appropriate 
 investment account or capital account for other operations. If the improvements are 
 removed or wrecked, the salvage (less the cost of removal or wreckage) shall be 
 excluded from the account "Land Devoted to Water Operations." The entries in 
 this account must be made in such wise as to enable the corporation to show in its 
 annual report to the Railroad Commission the subdivision of the cost of its land 
 devoted to water operations Into the following: 
 
 Land occupied by Pumping Plants. 
 
 Land occupied by Reservoirs, Tank and Standpipes. 
 
 Water Rights. 
 
 Other Land Devoted to Water Operations. 
 
 Pumping Capital. 
 
 C-6. BUILDINGS, STRUCTURES, ETC.: 
 
 Charge to this account the cost of all buildings, structures and 
 improvements such as pumping stations, purification and reservoir struc- 
 tures, clams and ditches, intake structure, steam, electric and gas pro-
 
 20 CLASSIFICATION OP ACCOUNTS, WATER CORPORATIONS. 
 
 duction structures, coal and other fuel sheds, and other storage buildings 
 and structures, tanks and standpipes, and other buildings and struc- 
 tures connected therewith, and all fixtures attached to such structures 
 and a permanent part thereof together with fences, walks, trestles, 
 drives, grading and improvements of grounds. Machinery foundations 
 and settings, if designed as a part of the permanent construction of the 
 buildings and independent of their use in connection with any particular 
 unit of equipment, shall be charged to this account. If, however, such 
 foundations and settings are prepared especially for certain units of 
 equipment and designed to last no longer than such unit, the cost 
 thereof should be charged to ' ' Pumping Equipment Account. ' ? 
 
 NOTE. The accounting corporation may, if it so desires, subdivide the accounts 
 under sub-accounts A, B, C, etc., in order to show the detail of cost of various 
 buildings and structures. 
 
 C-7. PUMPING EQUIPMENT: 
 
 Charge this account with the cost of all equipment and apparatus 
 used in the pumping of water and all processes performed upon it at the 
 station up to its delivery to the transmission or distribution mains. 
 This includes the cost of steam engines and turbines, hydraulic power 
 equipment, electric prime movers, gas engines and turbines, pumps and 
 pump equipment, furnaces, boilers, their foundations and settings, con- 
 densers, vacuum pumps and oiling systems, power transmission equip- 
 ment, such as shafting, belting, rope and cable drives, gearing, pulleys, 
 etc., smokestacks, feed pumps, piping, valves and all steam, hydraulic, 
 electric and gas power pumping equipment, together with necessary 
 tools and appliances. 
 
 NOTE. The accounting corporation may, if it so desires, subdivide this account, 
 under sub-accounts A, B, C, etc., in order to show the details of cost of various 
 classes of equipment. 
 
 C-8. COLLECTING AQUEDUCTS, INTAKES AND SUPPLY MAINS : 
 
 Charge this account with the cost of all aqueducts, intake and supply 
 mains used for gathering and collecting water and transmitting the 
 same from the source of supply to the pumping station. This includes 
 the cost of masonry and concrete aqueducts and channels, wells and 
 casing, piping and conduits, together with the necessary bracing, 
 digging and repaving in connection therewith and all necessary valves, 
 screens, wet wells, gratings, submerged and exposed cribs, intake 
 towers, sluice gates, etc. 
 
 C-9. PURIFICATION SYSTEM: 
 
 Charge this account with the cost of all apparatus and equipment 
 used for purification of water. This includes settling basins, filter 
 beds, mechanical filters, and all auxiliary apparatus for purifying 
 water, together with protecting structures erected in connection there- 
 with.
 
 CLASSIFICATION OF ACCOUNTS, WATER CORPORATIONS. 21 
 
 C-10. MISCELLANEOUS PUMPING EQUIPMENT: 
 
 Charge to this account the cost of all miscellaneous equipment; this 
 includes horses, wagons, harness, automobiles, motorcycles, bicycles, 
 furniture and fixtures (when not a permanent part of buildings, etc.), 
 roads, trestles, bridges, etc. 
 
 Distribution Capital. 
 
 C-ll. TRANSMISSION MAINS: 
 
 Charge to this account the cost of all transmission mains used for 
 delivering water from the pumping station to the distribution reser- 
 voirs or mains; this includes the cost of all trenching, placing trans- 
 mission main pipe, special castings, lead packing, shut-off s, manholes, 
 valves and the cost of filling trenches, and restoring the surface of the 
 street to its former condition as required by the municipal authorities. 
 
 C-12. DISTRIBUTION MAINS: 
 
 Charge to this account the cost of all distribution mains in place. 
 This includes all mains used in the distribution of water to the begin- 
 ning of the service connections, including the cost of all trenching, 
 placing distribution main pipe, special work and castings, lead packing, 
 shut-offs, manholes, valves and the filling of trenches and restoring the 
 surface of the street to its former condition as required by the munici- 
 pal authorities. 
 
 C-13. SERVICES: 
 
 Charge to this account the cost of corporation's property in services 
 in or leading to the consumers' premises. This includes the cost of 
 material in place, the cost of trenching for placing services, service 
 pipe, service boxes, stopcocks, etc., and the cost of filling the trenches 
 and restoring the surface to its proper condition. Where consumers 
 are required to pay part or all of the cost of services, only that portion 
 of the cost not chargeable to the consumers is chargeable to this 
 account, and in all cases where only a portion of the cost of service is 
 chargeable to this account the entry shall show the transactions in full. 
 Where services extending only from the main to the curb line or to 
 the lot line are placed before actually required for the purpose of supply- 
 ing consumers, the entry of the cost should show that fact. Such 
 services will be required to be separately reported to the Railroad 
 Commissioners, in the annual report. 
 
 C-14. HYDRANTS, FIRE CISTERNS, FOUNTAINS, ETC.: 
 
 Charge to this account the corporation's property in all hydrants, 
 fire cisterns, basins, fountains and troughs; this includes all material 
 in place, the cost of trenching for placing hydrants, hydrant connec- 
 tions, masonry and concrete in connection with construction of basins
 
 22 CLASSIFICATION" OF ACCOUNTS,, WATER CORPORATIONS. 
 
 and cisterns, and all foundations and settings for fountains and troughs 
 and restoring the pavement to its original condition. 
 
 C-15. METERS: 
 
 Charge to this account the cost of the corporation's property in all 
 meters used in measuring water sold to consumers. This includes the 
 cost of first setting of the meters, the first set of meter fittings, and con- 
 nections in the premises of the consumer, or such portion of the cost as 
 is borne by the corporation. The cost of changing the position of the 
 meter or its removal should not be charged to this account. 
 
 C-16. MISCELLANEOUS DISTRIBUTION EQUIPMENT: 
 
 Charge to this account the cost of all miscellaneous equipment used 
 in the distribution of water and which is not includible in the fore- 
 going accounts. This includes tools and appliances, (working stock 
 only) horses, wagons, harness, automobiles, motorcycles, bicycles, furni- 
 ture and fixtures (when not a permanent part of buildings, etc.), roads, 
 trestles and bridges, etc., where a part of the distribution system. 
 
 General Capital. 
 
 C-17. GENERAL STRUCTURES: 
 
 Charge to this account the cost of all buildings and other structures 
 of a permanent character devoted to general corporate purposes, not 
 restricted to water operations and not includible in any of the depart- 
 mental accounts ; also of all fixtures permanently attached thereto and 
 made a part thereof, such as water pipes and fixtures, steam pipes 
 and fixtures for warming and ventilating, gas pipes and fixtures for 
 lighting, etc., electric wiring and fixtures for lighting, signaling, etc. ; 
 elevators, etc. ; and the engines and motors specially provided for 
 operating them ; furnaces, boilers, etc., specially provided for produc- 
 ing steam for such engines and for heating ; electric generators specially 
 provided for producing current for lighting such buildings, etc. This 
 account includes such piers and other foundations for machinery and 
 apparatus as are designed to be as permanent as the buildings in (or 
 in connection with) which they are constructed, and to outlast the first 
 machinery or apparatus mounted thereon. 
 
 NOTE A. Among such buildings may be mentioned general office buildings, general 
 shop buildings, general storehouses, general stable buildings, etc. 
 
 NOTE B. When furnaces and boilers are used primarily for furnishing steam for 
 some particular department and only incidentally for furnishing steam for heating a 
 general building and operating the equipment therein, the entire cost of such furnaces 
 and boilers shall be charged to the appropriate departmental capital account, and 
 no part to the account, "General Structures." 
 
 NOTE C. The cost of specially provided foundations, not expected to outlast the 
 machinery or apparatus mounted thereon, should be charged to the same account 
 as is the cost of the machinery or apparatus for which they are provided.
 
 CLASSIFICATION OF ACCOUNTS, WATER CORPORATIONS. 23 
 
 C-18. GENERAL EQUIPMENT : 
 
 Charge to this account the cost of all equipment of general structures, 
 as provided under the following heads : 
 
 A. General Office Equipment. This includes the cost of all equip- 
 ment of general offices, such as desks, chairs, tables, movable safes, filing 
 cases, drafting-room equipment, and other like office appliances and 
 equipment ; also engineering instruments. 
 
 B. General Shop Equipment. This includes the cost of all equip- 
 ment specially provided for general shops, such as furnaces, boilers, gas 
 producers, engines, electric generators, and other power apparatus used 
 in operating machinery in such shops; machine tools, cranes, hoists, 
 shafting, belts and the like shop equipment; also such smithing equip- 
 ment in general shops as is used principally for other general purposes 
 than shoeing horses and repairing vehicles. 
 
 NOTE. Hand and other small portable tools liable to be lost or stolen shall not 
 Tse included herein, but portable tools and apparatus of special value may be charged 
 to this account and remain herein so long as record is kept of the persons to whom 
 such tools and apparatus are issued and such persons are made responsible therefor. 
 
 C. General Store Equipment. This includes the cost of all equip- 
 ment of general store structures, such as movable counters, movable 
 shelving, and other movable equipment of like nature, carts, barrows, 
 trucks, etc.. and other apparatus and appliances used in handling 
 materials and supplies. 
 
 NOTE. Counters, shelving and the like which are permanently attached to the 
 structure shall be charged to Account No. C-17, "General Structures," and not to 
 "this account. 
 
 D. General Stable and Garage Equipment. This includes the cost 
 <>f ;ill equipment of general stables and garages including horses, har- 
 ncs<. drays, wagons, automobiles and other vehicles, equipment of 
 shoeing shops, harness repair shops, vehicle repair shops, etc. 
 
 C-19. UNDISTRIBUTED CONSTRUCTION EXPENDITURES: 
 
 This account includes the expenditures provided for in the following 
 sub-accounts, when such expenditures cannot be satisfactorily allocated 
 to the fixed capital accounts to which they relate. Upon the retirement 
 or withdrawal of any property with respect to which any charge is 
 included in this account or any sub-account hereunder, there shall be 
 credited to this account or the appropriate sub-account such part of the 
 undistributed expenditures during construction (estimated if not 
 known) as may be applicable to the property withdrawn or retired. 
 
 A. Engineering and Superintendence. Charge to this account all 
 expenditures for services of engineers, draftsmen and superintendents 
 employed on preliminary and construction work, and expense? incident 
 to teh work of such employees when the expenditures can not be 
 -assigned to specific construction accounts.
 
 24 CLASSIFICATION OP ACCOUNTS, WATER CORPORATIONS. 
 
 B. Law Expenditures During Construction. Charge to this account 
 general law expenditures incurred in the construction of the water plant, 
 such as the pay and expenses of counsel, solicitors and attorneys, their 
 clerks and attendants, and expenses of their offices ; the cost of printing 
 briefs, legal f orms, testimony, reports, etc. ; payments to arbitrators for 
 the settlement of disputed questions; cost of suits and payments of 
 special fees, notarial fees and witness fees, and court expenses. When 
 any of the expenditures enumerated herein can be charged directly ta 
 the account for which incurred, they shall be so charged, and not to this 
 account. Law expenditures in connection with the organization of the 
 corporatibn shall be charged to Account No. 1, "Organization." 
 
 C. Injuries and Damages During Construction. Charge to this 
 account all damage to or destruction of property other than that owned 
 by the corporation, caused directly in connection with the construction 
 of the works, all expenses incident to injuries or death of employees and 
 other persons for which the corporation is held liable. This includes 
 such expenses as judgments, court costs, salaries and expenses, or fees of 
 physicians, surgeons, expenses of undertakers, nurses, and hospital 
 expenses, medical and surgical supplies, contribution to hospitals during- 
 the period of construction of the plant, transportation of injured per- 
 sons, salaries paid to employees while disabled, the salaries and expenses 
 of claim agents, adjusters, and their assistants. The compensation of 
 the general solicitors or counseLof the corporation while engaged in the 
 defense and settlement of damage or injury sustained will also be 
 charged to this account. 
 
 D. Taxes During Construction. Charge to this account all taxes and 
 assessments levied and paid on property belonging to the corporation 
 while under construction and before the plant is opened for operation, 
 except special taxes assessed for street and other improvements, such 
 as grading, sewering, curbing, guttering, paving, sidewalks, etc., which 
 shall be charged to the account to which the property benefited is 
 charged. 
 
 E. Miscellaneous Construction Expenditures. Charge to this account, 
 salaries and expenses of executive and general officers of the corporation 
 before it is ready to begin operations ; clerks in general offices engaged 
 on construction accounts or work; rent and repair of general offices 
 when rented, with the office expenses; insurance during construction; 
 also construction and equipment items of a special and incidental nature 
 which can not properly be charged to any other fixed capital account. 
 
 NOTE A. This account may include a suitable proportion of store expenses when 
 such expenses are not assignable to specific materials. 
 
 NOTE B. This account shall not include any costs of organization, or any costs 
 or discounts connected with the issue and disposal of stocks, bonds, or other securi- 
 ties, or commercial paper.
 
 CLASSIFICATION OF ACCOUNTS, WATER CORPORATIONS. . 25 
 
 -20. INTEREST DURING CONSTRUCTION: 
 
 Charge to this account the interest accrued upon all moneys (and 
 credits available upon demand) acquired for use in connection with 
 the construction and equipment of the property from the time of such 
 acquisition until the construction is ready for use. Interest receivable 
 accrued upon such moneys and credits shall be credited to this account. 
 redit to this account also discount realized through prompt payment 
 of bills for materials and supplies used in construction, unless such 
 discounts are credited to the bills to which they apply. 
 
 If any property with respect to which an interest is included in this 
 account is withdrawn or retired from service, the amount of such 
 interest (estimated if not known) shall be credited to this account and 
 charged off as part of the original cost of the property so retired. No 
 interest upon expenditures for replacements, renewals, or reconstruction 
 shall be included in this or any other fixed capital account unless proper 
 credits are made to the appropriate fixed capital accounts for any 
 interest included in such accounts in respect of property retired or 
 withdrawn. 
 
 -21. COST OF PLANT PURCHASED IN LIEU OF PLANT CONSTRUCTED: 
 Charge to this account the cost of the waterworks purchased in case 
 
 the plant of the corporation is obtained by purchase instead of being 
 
 constructed by it. 
 
 The entry to this account should show with sufficient detail the name 
 
 of the parties from whom purchased, the purchase price and other 
 
 facts pertinent to such sale. All books and records should be retained 
 
 at time of purchase. The Railroad Commission will require full and 
 
 complete details of all transaction of purchase. 
 
 C-22. FIXED CAPITAL IN OTHER DEPARTMENTS: 
 
 charge to this account the cost of all property of the corporation, 
 both tangible and intangible, devoted to its operations other than water, 
 not including investments as defined in Account No. 8, "Investments." 
 C-23. FIXED CAPITAL INSTALLED PRIOR TO JANUARY 1, 1913 : 
 
 In this account (on the balance sheet statement) shall be shown the 
 total of the balances in the ledger accounts representing the corpora- 
 tion's fixed capital which was installed prior to January 1, 1913, and 
 which is still in service at the date of the balance sheet. 
 
 The accounts representing the fixed capital of the corporation as 
 carried on its books at the close of December 31, 1912, shall be so 
 designated upon the books of the corporation as to show clearly that 
 they relate only to fixed capital installed prior to the close of that date. 
 !No debits shall be made to such accounts with respect to any property
 
 26 CLASSIFICATION OF ACCOUNTS. WATER CORPORATIONS. 
 
 subsequently acquired, but the cost of such property shall be charged 
 to the accounts hereinbefore provided. When any property acquired 
 prior to January 1, 1913, is withdrawn or retired from service, the 
 amount at which it stands charged shall be credited to the account in 
 which it is charged and concurrent debits shall be made (1) to "Cash." 
 "Materials and Supplies," or other account, as may be appropriate, 
 for the value of any salvage; (2) to Account No. 29, ''Reserve for 
 Accrued Depreciation." or to Account No. 30, "Reserve for Amortiza- 
 tion of Intangible Capital," for the amount of depreciation or other 
 amortization applicable to the period subsequent to December 31, 1912 ; 
 and (3) to "Corporate Surplus or Deficit account" for the remainder 
 of the amount at which the property is carried in the accounts for fixed 
 capital; unless the corporation had on that date a reserve for retire- 
 ments, in which case the latter amount, or so much of it as may be 
 applicable, shall be charged to such reserve account. 
 
 NOTE. In the reports to the Railroad Commission, a statement will be required 
 showing the names of the accounts for fixed capital actually carried by the corpora- 
 tion on December 31, 1912, and the balances therein at the date of the report. 
 
 C-24. FIXED CAPITAL INSTALLED SINCE DECEMBER 31, 1912 : 
 
 This account is a summary of the accounts representing the corpora- 
 tion's fixed capital since December 31. 1912, and should show the cost 
 of the fixed capital which has been installed since that date and is still in 
 service at the date of the balance sheet. (For the primary Fixed 
 Capital accounts, see Account C-l to C-4, "Intangible Capital," and 
 Accounts C-5 to C-23, "Tangible Capital.") 
 
 INCOME ACCOUNT. 
 
 INCOME ACCOUNT DEFINED : 
 
 The income account brings together those accounts that show the total 
 amount of money that the corporation has received or becomes entitled 
 to receive for services rendered during a given period, the return accru- 
 ing during the period upon investments, and the disbursements and obli- 
 gations incurred that affect the disposition of the amounts so received or 
 accrued. The following accounts make up the income account statement 
 and should be closed into the Income Account at the close of the year or 
 other fiscal period. 
 
 101. OPERATING REVENUES : 
 
 Include in this account the total operating revenues of the corporation 
 for the period covered by the income statement. See Accounts R-l to 
 R-9, inclusive, under "Operating Revenue." 
 
 102. OPERATING EXPENSES : 
 
 Include in this account the total operating expenses of the corpora- 
 tion for the period covered by the income statement. (See Accounts- 
 E-l to E-52. inclusive, under "Operating Expenses.")
 
 CLASSIFICATION" OF ACCOUNTS, WATER CORPORATIONS. 27 
 
 103. UNCOLLECTIBLE WATER BILLS: 
 
 Charge to this account (and credit the account receivable in which 
 theretofore carried) the amount of any account for water services which, 
 after a reasonably diligent effort to collect, has proved impracticable of 
 collection. This account includes only uncollectible bills for amounts 
 which have been treated as operating revenues ; other uncollectible bills 
 should be charged to Account No. 105-G, "Uncollectible Non-operating 
 Revenues," or to Corporate Surplus or Deficit Account, as may be 
 appropriate. 
 
 104. NON-OPERATING REVENUES : 
 
 A. Rents from Buildings, Land and Apparatus. Credit to this 
 account as it accrues rent from the rental of buildings, land and water 
 apparatus and appliances. Where the contract of rental includes the 
 setting and connection of such apparatus and also its maintenance by 
 the corporation, the total earnings from such rental shall be credited to 
 this account. 
 
 B. Interest and Dividend Revenues. Credit to this account monthly 
 all revenues accruing to the corporation, not retained in specific sinking 
 or other reserve funds, from interest upon all its bank balances, special 
 deposits, and other assets, when such interest is a liability of solvent 
 concerns or individuals, and from dividends declared or guaranteed by 
 solvent concerns upon stocks held by the corporation. No interest or 
 dividends upon securities issued or assumed by the accounting corpora- 
 tion shall be credited to this account nor to any other revenue account. 
 
 Class A corporations will subdivide the revenue included herein and 
 keep separate accounts for 
 
 a. Interest Revenues on Funded Debt owned. 
 6. Miscellaneous Interest Revenues. 
 c. Dividend Revenues. 
 
 C. Sinking and Other Reserve Fund Accretions. Credit to this 
 account and charge the appropriate fund or its trustee monthly the 
 revenues accruing from securities and other assets in the hands of trus- 
 tees or specifically set aside for sinking and other special funds, when 
 the revenues are retained as a part of the funds. Such revenues may 
 include appropriations equal to interest upon securities issued or as- 
 sumed by the accounting corporation where such securities are acquired 
 through the operation of a sinking or other reserve fund. 
 
 NOTE. If the assets of a fund are to be represented by a reserve from surplus, 
 concurrent entries should be made charging Account No. 113, "Sinking Fund Appro- 
 priation," or Account No. 114 E "Appropriations to Reserves," crediting Account No. 
 34, "Reserves Invested in Sinking Funds," or No. 35, "Other Reserves from Income 
 or Surplus," as may be appropriate. 
 
 D. Profits from Operations of Others. Whenever in accordance with 
 the terms of any contract the corporation is entitled to participate in the
 
 28 CLASSIFICATION OF ACCOUNTS, WATER CORPORATIONS. 
 
 profits from operations of others, all revenues accruing to the corpora- 
 tion from such source shall be credited to this account. 
 
 XOTE. This account does not include any dividends on stocks nor any remunera- 
 tion for services. 
 
 E. Miscellaneous Non-operating Revenues. Credit to this account all 
 non-operating revenues not provided for in the foregoing accounts. 
 
 105. NON-OPERATING REVENUE DEDUCTIONS : 
 
 A. Rent Expenses. Charge to this account all expenses arising in 
 connection with the procuring of revenues from rented property, such as 
 the cost of negotiating contracts, advertising for tenants, fees paid con- 
 veyancers, collector's commissions, cost of enforcing payment of rent, 
 cost of ousting tenants, etc. This includes the expenses accruing while 
 the property is idle and awaiting an occupant ; also the cost of mainte- 
 nance of the property when such cost is borne by the corporation. Such 
 maintenance includes depreciation as well as reparable wear and tear. 
 It does not include taxes. 
 
 B. Interest Expenses. Charge to this account all expense arising in 
 connection with procuring interest upon investments, such as expense 
 of collection, expense of investigating delay in payment, expense of 
 enforcing payment, and the like. It does not include taxes on such 
 investments. 
 
 C. Dividend Expenses. Charge to this account all expense arising 
 in connection with the collection of dividends on stocks of other corpor- 
 ations, including expenses incurred in the investigation of the affairs 
 of the corporations whose stocks are held, whether for the purpose of 
 detecting mismanagement or for the purpose of inducing the declara- 
 tion of dividends, and all expense connected with enforcing payment 
 of dividends when declared. It does not include taxes on such 
 investments. . . 
 
 D. Others' Operations Expenses. Charge to this account the cost 
 of negotiating contracts whereunder the corporation is to participate 
 in the profit resulting from the operations of others; also all expense 
 of collecting the corporation's proportion of such profits, and all 
 expense connected with procuring the modification or the dissolution 
 of any such contract. 
 
 E. Miscellaneous Non-operating Expenses. Charge to this account all 
 non-operating expense not provided for in the foregoing sub-accounts. 
 
 F. Non-operating Taxes. Charge to this account all taxes payable 
 by the corporation accrued upon non-operating property, and all taxes 
 assignable to non-operating revenues. 
 
 G. Uncollectible Non-operating Revenues. When any non-operating 
 revenues are judged by the corporation to be uncollectible, the amount 
 thereof shall be credited to the account in which theretofore charged and 
 charged to this account.
 
 CLASSIFICATION OF ACCOUNTS, WATER CORPORATIONS. 29 
 
 106. INTEREST ACCRUED ON FUNDED DEBT : 
 
 Charge to this account monthly all interest accrued on outstanding 
 funded debt issued or assumed by the corporation. This account does 
 not include interest on securities held by the corporation in its treasury, 
 in sinking or other reserve funds, or pledged as collateral. 
 
 NOTE A. The amount charged to this account shall be concurrently credited to 
 Account No. 25, "Interest Accrued," to which account shall be debited payments 
 made on account of interest. 
 
 NOTE B. If any of the funded debt securities issued or assumed by the corpora- 
 tion are held in its sinking or other reserve funds and the interest on such funded 
 debt is an accretion to the fund, the interest on such securities shall not be charged 
 to this account but an amount equal to the interest on the funded debt so held shall 
 be charged to Account No. 113, "Sinking Fund Appropriations." This does not apply 
 to securities in funds held in trust by the corporation, such as employees' pension 
 funds and savings funds. 
 
 107. OTHER INTEREST DEDUCTIONS : 
 
 Charge to this account monthly all interest accrued on receivers' certi- 
 ficates and on interest bearing unfunded obligations of the corporation. 
 
 NOTE A. The amount charged to this account shall be concurrently credited to 
 Account No. 25, "Interest Accrued," or to No. 21, "Receivers' Certificates," to which 
 accounts shall be debited payments made on account of such interest. 
 
 108. RENT DEDUCTIONS: 
 
 Charge to this account monthly all amounts accrued against the cor- 
 poration for rents, other than minor rents provided for elsewhere as 
 chargeable to operating expenses. It includes the matters provided for 
 in the following sub-accounts: 
 
 A. Rent for Lease of Other Water Plant. Charge to this account 
 monthly all amounts accrued against the corporation for rent of water 
 plant and equipment which it holds under some form of lease from 
 another, and of which it has the exclusive possession. 
 
 This account is intended to cover only rents payable for the use of 
 water plant or operating units held as a whole under some form of lease. 
 
 B. Miscellaneous Rent Deductions. Charge to this account rents pay- 
 able accrued not provided for elsewhere. 
 
 109. AMORTIZATION OF DEBT DISCOUNT AND EXPENSE : 
 
 Charge to this account at or before the close of any fiscal period that 
 proportion of the unamortized discount and expense on outstanding 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 the maturity of any debt will completely amortize 
 or wipe out the discount at which such debt was issued and the debt 
 expense connected therewith. Such amortization may at the option of 
 the corporation be earlier affected by charging all or any portion of such 
 discount and debt expense to Account No. 114 G, "Other Deductions 
 from Surplus, ' ' immediately upon issue of the debt or thereafter.
 
 30 CLASSIFICATION OF ACCOUNTS. WATER CORPORATIONS. 
 
 110. AMORTIZATION OF PREMIUM ON DEBT CR. : 
 
 Credit this account at or after the close of any fiscal period the pro- 
 portion of the premium at which outstanding debt was issued 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 the maturity of any debt will completely amortize or wipe 
 out the premium at which such debt was issued. 
 
 111. MISCELLANEOUS DEDUCTIONS FROM INCOME : 
 
 Charge to this account the matters provided for in the following sub- 
 accounts : 
 
 A. Loss on Operations of Others. Whenever, in accordance with the 
 terms of any contract, the corporation is bound to contribute toward 
 reimbursement of the losses resulting from the operations of others, all 
 liabilities accruing to the corporation from such source shall be charged 
 to this account. 
 
 B. Amortization of Landed Capital. Charge to this account at the 
 close of any fiscal period such portion of the original money cost (esti- 
 mated if not known) of landed capital as is necessary to cover the pro- 
 portion of the life thereof expired during such period. 
 
 NOTE A. The amounts charged to this account shall be concurrently credited to 
 Account No. 30, "Reserve for Amortization of Intangible Capital." 
 
 NOTE B. When any landed capital expires or is otherwise retired from service 
 (as, e. g., through sale) the capital account or investment account (if any) originally 
 charged therewith shall be credited with the amount originally charged ; Account No. 
 30, "Reserve for Amortization of Intangible Capital," shall be debited with all 
 amounts theretofore credited to such account in respect of such landed capital so 
 going out of service, the appropriate account shall be debited witn the proceeds of 
 sale (if any), and any necessary adjustment shall be made through the "Corporate 
 Surplus or Deficit" account. 
 
 C. Other Contractual Deductions from Income. Charge to this ac- 
 count all deductions from gross income which are in the nature of fixed 
 charges and not provided for otherwise, such as those required by the 
 terms of some contract, agreement, charter provision, law, or ordinance. 
 Such deductions should not include any appropriations or dispositions 
 of income that rest solely in the discretion of the accounting corporation. 
 
 NOTE. Payments to sinking funds shall not be charged to this account but shall 
 be included in Account No. 113, "Sinking Fund Appropriations." 
 
 CORPORATE SURPLUS OR DEFICIT ACCOUNT. 
 
 CORPORATE SURPLUS OR DEFICIT ACCOUNT DEFINED : 
 
 This account or summary is the connecting link between the income 
 account and the balance sheet. It summarizes the changes in the cor- 
 porate surplus or deficit during a given fiscal period resulting from the 
 business transactions during that period as well as those affected by 
 any disposition of net profits made solely at the option of the corpora- 
 tion, by accounting adjustments not properly attributable to the period, 
 or by miscellaneous losses or gains not provided for elsewhere.
 
 CLASSIFICATION OF ACCOUNTS, WATER CORPORATIONS. 31 
 
 To this account should be carried the net balance of the accounts- 
 forming the Income account, and in it should be summarized all 
 optional appropriations (including dividends) ; miscellaneous adjust- 
 ments due to errors in accounting in prior fiscal periods; profits from 
 the sale of securities or other property; losses upon property sold or 
 otherwise retired and not covered by reserves, and unusual losses and 
 gains of like nature. For these matters the following accounts are 
 provided; their net balance added to the net balance from the Income 
 account should show the net surplus or deficit on the date of the balance 
 sheet. 
 
 112. DIVIDENDS ON OUTSTANDING STOCK: 
 
 When any dividend is declared upon any outstanding stocks of the 
 corporation, the amount of such dividend shall thereupon be charged 
 to this account. All entries to this account shall show the amount of 
 stock upon which the dividend is declared as well as the amount thereof. 
 If the dividend is payable in anything other than money, such thing 
 shall be described in the entry with sufficient particularity to identify 
 it, and the actual money value thereof shall be stated as the amount of 
 the dividend. 
 
 When any dividend is declared upon the stocks of the corporation 
 owned by or held in behalf of the corporation, the amount of such 
 dividend thereon shall be credited to this account. Entries of credits- 
 to this account shall be made with the same degree of particularity as 
 is prescribed in the preceding paragraph. 
 
 113. SINKING FUND APPROPRIATIONS: 
 
 Charge to this account all appropriations to sinking funds and accre- 
 tions to such funds on account of income from previous investments. 
 Such appropriations should include: (1) direct payments; (2) sums 
 equal to the interest or dividends on securities issued or assumed by 
 the corporation and held in sinking funds; (3) income from invest- 
 ments of sinking funds other than securities issued or assumed : (4) in- 
 come from cash or special deposits held by trustees of sinking funds. 
 All earnings of sinking funds and contributions to such funds shall be 
 included in this account whether such contributions are made at the 
 option of the corporation or are required by the provisions of mort- 
 gages, deeds of trust, or other contracts. 
 
 114. MISCELLANEOUS DEDUCTIONS FROM SURPLUS: 
 
 A. Expenses Unprovided for Elsewhere. Charge to this account all 
 expenses not chargeable as a part of operating expenses or of non- 
 operating expenses, such as fines levied on the corporation for violation 
 of law. for misfeasance, etc., fines levied on directors, officers, and other 
 employees of the corporation and assumed by it, donations to funds, ta 
 churches and other associations, and other like expenses and outgoes.
 
 32 CLASSIFICATION OF ACCOUNTS, WATER CORPORATIONS. 
 
 B. Realized Depreciation Not Covered by Reserves. Charge to this 
 account the realized depreciation (that is, the difference between the 
 original cost and the salvage, if any) on tangible capital retired, when 
 such depreciation has not been provided for through a depreciation 
 reserve. This includes such portion of the realized depreciation on 
 .any physical property which was installed prior to the creation of the 
 reserve for accrued depreciation as is due to life in service before that 
 date; this portion may be estimated on the basis of the proportion 
 which the life in service of the property in question prior to the 
 -establishment of the reserve bears to its entire life in service. 
 
 C. Amortization 'Unprovided for Elsewhere. Charge to this account 
 when any intangible property expires or is relinquished, such portion 
 of its cost as has not been previously written off or is not covered by 
 Account Xo. 30. "Reserve for Amortization of Intangible Capital." 
 Charge also to this account all optional amortization, such as that of 
 organization expenses, and assets, carried in Account No. C-4, "Other 
 Intangible Capital." 
 
 D. Gifts to Controlled Corporations. Charge to this account all gifts 
 made by the corporation to its controlled corporations, also such por- 
 tions of all advances thereto as are not carried as assets. 
 
 E. Appropriations to Reserves. Charge to this account all optional 
 -appropriations to reserves. 
 
 F. Other Appropriations from Surplus. Charge to this account all 
 optional appropriations made by the corporation and not provided 
 for elsewhere. 
 
 NOTE. A complete analysis of this account will be required in annual reports of 
 corporations to the Railroad Commission. 
 
 G. Other Deductions from Surplus. Charge to this account all deduc- 
 tions from surplus made to extinguish discount on stocks outstanding, 
 optional amortization of debt discount and expense, deductions because 
 of erroneous accounting in prior fiscal periods, and all other deductions 
 from surplus not provided for elsewhere. 
 
 NOTE. A complete analysis of this account will be required in annual reports of 
 corporations to the Railroad Commission. 
 
 115. MISCELLANEOUS ADDITIONS TO SURPLUS : 
 
 Credit to this account all additions to surplus due to erroneous 
 accounting in previous fiscal periods, bad debts collected after being 
 written off, profits arising from the sale of securities or other property, 
 <etc. 
 
 OPERATING REVENUES WATER. 
 
 EXPLANATION : 
 
 Revenue defined. By revenues, as the word is used herein, are meant 
 all amounts of money which the corporation receives or becomes law- 
 fully entitled to recover for services rendered, for products sold, as
 
 CLASSIFICATION OF ACCOUNTS, WATER CORPORATIONS. 33 
 
 gross profits on merchandise sold, or as a return upon its property (or 
 interest in property). Eevenues are classified as OPERATING REVENUES- 
 
 and NON-OPERATING REVENUES. 
 
 Operating revenues defined. Operating revenues are those derived 
 from the sale of products and merchandise, from services rendered,, 
 and from return on property used by the person or corporation in its 
 own operations. 
 
 yon-operating revenues defined. Non-operating revenues are those 
 derived as a return upon the property of the corporation in the hands 
 of others or from its interests in property in the hands of others. They 
 may be sub-classified as RENTS, INTEREST, DIVIDENDS, and MISCELLANEOUS* 
 
 Revenue deductions defined. Revenue deductions include EXPENSES,- 
 TAXES, and UNCOLLECTIBLE BILLS. 
 
 R-l. EARNINGS FROM COMMERCIAL SALES: 
 
 Credit this account with all revenue from water sales to commercial 
 consumers, both where the revenue is dependent upon the quantity of 
 water taken as received by meter or at a flat rate. Commercial con- 
 sumers embrace residences, offices, apartment houses, retail commercial 
 establishments, etc., where water is not used primarily for power or 
 industrial purposes. Water sold to the municipality for use in publie 
 buildings and not included in the contract for hydrant rentals, and 
 other municipal uses, will be credited to this account. Where a dis- 
 count is allowed for prompt payment of bills, or penalty is added for 
 non-payment on a fixed date, such discount or penalty shall be charged 
 or credited to this account. The earnings shall be subdivided and 
 reported separately to the Railroad Commission as follows: 
 
 A. Commercial earnings flat rate. 
 
 B. Commercial earnings metered. 
 
 R-2. EARNINGS FROM INDUSTRIAL SALES: 
 
 ( 'ri'dit this account with all earnings from the sale of water for power 
 and industrial purposes to manufacturers and industrial establishments. 
 
 Discounts allowed for prompt payment of bills or penalties added for 
 non-payment, on a fixed date (such as discounts or penalties) shall be- 
 charged or credited to this account. The earnings shall be subdivided 
 and reported separately to the Railroad Commission as follows : 
 
 A. Earnings from Industrial Sales flat rate. 
 
 B. Earnings from Industrial Sales metered. 
 
 R-3. EARNINGS FROM MUNICIPAL HYDRANT RENTALS: 
 
 Credit to this account all revenue from the municipality for hydrant 
 rental. Where the hydrant rental paid by the municipality includes 
 the use of water for street sprinkling and flushing purposes, and such
 
 34 CLASSIFICATION OF ACCOUNTS, WATER CORPORATIONS. 
 
 >vater is not being separately metered. the total revenue collected under 
 the contract for hydrant rental will be credited to this account. 
 
 R-4. EARNINGS FROM SALE FOR STREET SPRINKLING : 
 
 Credit to this account all earnings from sale of water for street 
 sprinkling, both to individuals and contractors engaged in sprinkling 
 streets, parks, and thoroughfares, and also with sales to the municipality 
 where such sprinkling is performed by the city. 
 
 lt-5. EARNINGS FROM SALES TO MUNICIPAL DEPARTMENTS : 
 
 Credit to this account all earnings from the sale of water to municipal 
 departments other than for street sprinkling if such is performed by 
 the municipality. This includes earnings from the sale of water for 
 sewer and street flushing, street constructions, filling fire cisterns and 
 basins, etc. Where a separate contract is entered into for water services 
 at public buildings, as schools, police and fire stations, city hall, etc., 
 revenue collected under such contracts will be credited to this account, 
 and a record kept of revenue received under each separate contract. 
 
 R-6. EARNINGS FROM SALES FOR IRRIGATION : 
 
 Credit to this account all earnings from the sale of water for irriga- 
 tion purposes at rates specially made, in any manner applied to units 
 of consumption. 
 
 R-7. MISCELLANEOUS EARNINGS FROM OPERATIONS: 
 
 Credit to this account all earnings from operating transactions not 
 properly included in the preceding accounts. 
 
 OTHER OPERATING REVENUES. 
 
 R-8. PROFIT ON MERCHANDISE SALES: 
 
 Credit to this account the receipts derived from the sale of water 
 appliances and plumbing fixtures used in the consumption and utiliza- 
 tion of water. Profit as used in the account, is defined as being the 
 excess of the sales price over the cash cost; including the invoice cost, 
 cost of handling, storage, etc. ; charge this account with all expense for 
 labor and material in connection with the sale of such appliance or 
 merchandise. The net amount only, or the profit on sales, is to be 
 carried to "Income Account." The credit and charges to this account 
 shall be made in such a manner as to admit of a detailed analysis when 
 called for by the Railroad Commission. 
 
 R-9. PROFIT ON PIPING AND CONNECTIONS : 
 
 Credit this account with all earnings derived from piping and connec- 
 tion work performed by the corporation. This includes earnings from 
 services performed on the consumer's premises, such as piping, con-
 
 CLASSIFICATION* OF ACCOUNTS, WATER CORPORATIONS. 35 
 
 necting and disconnecting house piping and water fixtures, the relocat- 
 ing of piping or apparatus, and other plumbing and fixture work. 
 
 If prospective consumers are charged for services performed by the 
 corporation in connecting the house piping and plumbing with the 
 service connection, or for laying such service piping, such earnings 
 shall be credited to this account. Charge to this account all expenses 
 for labor and material in connection with such operations. The net 
 amount only, or the profit from piping and connection w r ork being 
 carried to the "Income Account." The credits and charges will be 
 made in such manner as to admit of a detailed analysis when called for 
 by the Railroad Commission. 
 
 WATER CORPORATIONS OPERATING EXPENSE ACCOUNTS. 
 
 DEFINITIONS OP CERTAIN TERMS USED IN CONNECTION WITH EXPENSE 
 ACCOUNTS : 
 
 Except where some other meaning is clearly specified in the definitions 
 of the accounts, the following words, wherever used hereunder, have the 
 meanings below stated : 
 
 Cost means cash or money cost, and not price based on a term of 
 credit. 
 
 Labor means human services of whatever character. 
 
 Cost of labor includes wages, salaries and fees paid to persons for 
 their sen-ices. 
 
 Cost of materials and supplies includes all specifically assignable 
 transportation charges incurred in obtaining the delivery of such 
 materials and supplies upon the premises of the purchaser, and cost of 
 any special tests made thereon prior to their acceptance; and in case 
 the accounting person or corporation desires, it may include a suitable 
 proportion of store expense (when the materials and supplies are passed 
 through stores) and the cost of further transportation to the place of 
 consumption, and a suitable proportion of the expense of the pur- 
 chasing department, in which case a corresponding credit shall be made 
 to the suitable expense account as hereinafter provided. 
 
 Cost of repairs, when made by the accounting person or corporation, 
 includes cost of labor expended and material consumed, less salvage, 
 if any. 
 
 NOTE. It is not required that the transportation element of cost shall be assigned 
 with a greater degree of accuracy than to the nearest cent per unit of material or 
 supply. Where a single transportation item covers a multitude of things the portion 
 of the expense not assigned to specific things should be charged to the same account 
 that store expenses are charged to.
 
 36 CLASSIFICATION OF ACCOUNTS, WATER CORPORATIONS. 
 
 GENERAL ACCOUNTS. 
 
 PUMPING EXPENSES. 
 
 DISTBIBUTION EXPENSES. 
 
 COMMERCIAL EXPENSES. 
 
 GENERAL AND MISCELLANEOUS EXPENSES. 
 
 TAXES. 
 
 DEPRECIATION, ETC. 
 
 Pumping Expenses. 
 
 E-l. SUPERINTENDENCE: 
 
 Charge to this account the salary and wages of superintendent of 
 the pumping plant, the assistant superintendent, foremen, chemist, 
 draftsmen and all clerical help upon records and accounts whether 
 such services are performed at the general office or at the plant. 
 
 E-2. PUMPING LABOR : 
 
 Charge to this account the salary and wages of all employees engaged 
 in operating pumping equipment. This includes such labor as that of 
 chief engineer, assistant engineers, foremen, helpers, oilers, wipers, 
 motor attendants, shovelers, weighers, feed pump men, blowing flues, 
 cleaning boilers, and other labor in engine and boiler and pump room 
 directly in connection with power pumps. 
 
 E-3. PURIFICATION LABOR: 
 
 Charge to this account the salary and wages of all employees engaged 
 in the purification of water. This includes such labor as cleaning basins, 
 removing ice, etc., scraping sand and all processes of water purification 
 brought about by plain sedimentation with coagulation, treatment for 
 softening ; removal of iron, algae, etc. ; purification by slow and rapid 
 sand filtration and other means. 
 
 E-4. MISCELLANEOUS LABOR : 
 
 Charge to this account the salary and wages of all employees in and 
 about the pumping plant, such as watchmen, janitors, messengers, labor 
 cleaning buildings and yards ; also labor patrolling reservoirs, dams and 
 channels, and other labor chargeable to pumping plant not included in 
 the foregoing accounts. 
 
 E-5. FUEL FOR STEAM : 
 
 Charge to this account the cost of all fuel used under boilers at 
 pumping plant, whether coal, oil, gas or other fuel, at cost, plus freight 
 charges, demurrage, and labor discharging and transferring fuel from 
 point of delivery to place of storage. 
 
 E-6. POWER PURCHASED : 
 
 Charge to this account the cost of all steam, electricity, or gas pur- 
 chased for the operation of prime movers at pumping plant.
 
 CLASSIFICATION OF ACCOUNTS, WATER CORPORATIONS. 37 
 
 E-7. LUBRICANTS, ETC. : 
 
 Charge to this account the cost of all lubricants for power pumping 
 equipment and machinery, such as cylinder oil, machine oil, graphite, 
 and other lubricants ; also boiler compounds. 
 
 E-8. PURIFICATION SUPPLIES AND EXPENSES : 
 
 Charge to this account the cost of all supplies consumed and expenses 
 incurred in the purification of water, such as chemicals, coagulants, and 
 other supplies used in the process of water purification, softening,, 
 removal of iron, algae, etc. 
 
 E-9. MISCELLANEOUS PUMPING STATION SUPPLIES AND EXPENSES : 
 
 Charge to this account all operating supplies and expenses of pumping 
 plant not chargeable to any of the preceding accounts; such as waste, 
 packing, wipers, hose, gaskets, gauge glasses, hand tools, gas and elec- 
 tricity for lighting, heating and cleaning pumping station, laboratory 
 apparatus and supplies, ice, water for general use and fire protection 
 and all items of similar nature. Charge this account with stationery, 
 telephone, etc. 
 
 E-10. REPAIRS TO POWER PUMPING EQUIPMENT: 
 
 Charge to this account all labor and material used in repairing power 
 pumping equipment. This includes repairs to steam, hydraulic, electric 
 and gas power pumps and pumping equipment. 
 
 NOTE. The accounting corporation may, if it so desires, subdivide this account 
 in order to show details of cost of 
 
 A. Maintenance of Prime Movers. 
 B. Maintenance of Pumps. 
 
 E-ll. REPAIRS TO BOILER ROOM AUXILIARY EQUIPMENT: 
 
 Charge this account with all expenses for labor and material in repair- 
 ing boilers and furnaces, iron, steel and brick smoke stacks, feed pumps, 
 water feed pipes, injectors, economizers, water heaters, superheaters, 
 valves, grates, flues, mechanical stoker equipment, pipings, steam exhaust 
 system, boiler water supply mains, etc. ; repairing coal and ash conveyors, 
 trolley and cable towers, crushers, belt links, conveyor cars, winches, 
 buckets, shafts, chains, etc. 
 
 E-12. REPAIRS TO PUMPING STATION AUXILIARY EQUIPMENT : 
 
 Charge to this account all labor and material used in repairing pump- 
 ing station auxiliary equipment such as repairs to condensers, vacuum 
 pumps, oiling systems, shafting, belting, rope and cable drives, clutches, 
 pulley and idler wheels, and auxiliary motors, hoists, cranes and other 
 auxiliary electric equipment, gas conductor and exhaust pipes and other 
 gas producer apparatus.
 
 38 CLASSIFICATION OF ACCOUNTS, WATER CORPORATIONS. 
 
 E-13. REPAIRS TO PUMPING STATION MISCELLANEOUS EQUIPMENT : 
 
 Charge to this account all labor and material used in repairing mis- 
 cellaneous equipment not includible in foregoing accounts. This 
 includes repairs to wagons, harness, automobiles, motorcycles, bicycles, 
 shoeing horses, furniture and fixtures, etc. 
 
 E-14. REPAIRS TO SURFACE SOURCE OF SUPPLY : 
 
 Charge to this account all expenses for labor and material incurred in 
 making repairs to surface source of supply. This includes repairs to 
 river and lake source, impounding reservoirs, dams, artificial lakes and 
 ponds, canals, conduits, embankments, channels, waste weirs, gates, 
 valves, gate structures, pipe lines, flumes, aqueducts, supporting trestles, 
 viaducts, and repairs to work for utilizing flow from springs. 
 
 E-15. REPAIRS TO GROUND SOURCE OF SUPPLY : 
 
 Charge to this account all expenses for labor and material incurred in 
 making repairs to the ground source of water supply. This includes 
 repairs to large open wells, shallow tubular wells, deep artesian wells, 
 etc., the removal of sand or corroded material and repairs to well casing, 
 repairs to filter galleries, etc. 
 
 E-16. REPAIRS TO COLLECTING AQUEDUCTS, INTAKES AND SUPPLY MAINS : 
 Charge this account with all expense for labor and material in making 
 repairs to the collecting aqueducts, intakes and supply mains, between 
 the source of supply and the pumping equipment at the station. This 
 includes the periodical scraping to remove organic growth and incrusta- 
 tion, repairs to masonry of aqueducts and channels, seeking and repair- 
 ing leaks, repairing pipes and removing and replacing worn sections 
 and fittings, caulking, protecting exposed parts of undermined supply 
 mains, with the necessary bracing and digging in connection therewith, 
 repaving and repairs to valves, hatch boxes, manholes, etc., repairs to 
 regulating valves, screens and wet wells, repairs and renewals of grat- 
 ing, fish screens and repairs to submerged and exposed cribs, intake 
 towers and other structures, sluice gates, etc. 
 
 E-17. REPAIRS TO PURIFICATION PLANT: 
 
 Charge this account with all labor and material incurred in making 
 repairs to the purification plant. This includes repairs to settling 
 basins, renewing and washing sand and repairs to all other equipment 
 used in the purification of water by plain sedimentation, sedimentation 
 with coagulation, treatment for softening and removal of iron, alga\ 
 etc.; purification by slow and rapid sand filtration, mechanical filters. 
 etc.
 
 CLASSIFICATION OP ACCOUNTS, WATER CORPORATIONS. 39 
 
 E-18. REPAIRS TO PUMPING STATION BUILDINGS, FIXTURES AND 
 
 GROUNDS : 
 
 Charge this account with all expenses for labor and material incurred 
 in repairing -buildings, fixtures and grounds, including permanent 
 apparatus, foundations for engines, pumps and boilers, etc. 
 
 Distribution Expenses. 
 
 E-19. PATROLLING STORAGE FACILITIES: 
 
 Charge this account with the salaries and wages of all employees 
 engaged in patrolling the distribution storage facilities. This includes 
 the wages of employees stationed at the distribution storage reservoirs, 
 inspection of tanks and standpipes, etc., including minor repairs made 
 by patrolmen. 
 
 E-20. METER AND FITTINGS DEPARTMENT EXPENSES AND SUPPLIES: 
 
 Charge this account with all expenses for labor and material, remov- 
 ing and resetting meters on the premises of the consumers, meter shop 
 clerks, employees keeping shop records, readjusting, painting, replac- 
 ing worn gears, wearing parts and dials, testing and repairing old 
 meters, repairing and replacing connections, meter fittings, etc., meter 
 unions and cocks, and changing meters for routine tests, expenses such 
 as light, fuel, gas, electricity and water used for operating machinery 
 and for testing in this department, hand tools, etc. 
 
 E-21. STREET DEPARTMENT EXPENSES AND SUPPLIES: 
 
 Charge this account with expenses for labor and materials, inspecting 
 the distribution system, flushing mains and hydrants, pumping out 
 hydrants, taking street pressure, and clerical help in connection there- 
 with. This account also includes all tools used by street department 
 force and the repair thereof, office supplies, etc. 
 
 E-22. CUSTOMERS' PREMISES EXPENSES: 
 
 Charge this account with all labor and material required for adjust- 
 ing house piping, plumbing and water fixtures, including the cost of 
 new appliances or devices put in to better the service, and not properly 
 chargeable to repairs, investigating reports of poor service, or large 
 bills, including inspection and testing of house plumbing, labor chang- 
 ing meters for request tests, and inspecting new plumbing, including 
 car fare, meals, etc., of employees engaged in such work. 
 
 E-23. REPAIRS TO TRANSMISSION MAINS: 
 
 Charge this account with all labor and material incurred in repair- 
 ing, changing position of or replacing transmision main between the 
 pumping station and distribution reservoirs, tanks, etc. ; this account to 
 include such expense as seeking and repairing leaks, repairing pipes 
 and removing and replacing worn sections and fittings, caulking, pro-
 
 40 CLASSIFICATION OF ACCOUNTS, WATER CORPORATIONS. 
 
 tecting exposed parts of undermined mains, digging and bracing in 
 connection with such work, repaying and repairing manholes, etc., 
 together with all material and supplies consumed in thawing pipes and 
 scraping to remove incrustation. 
 
 E-24. REPAIRS TO RESERVOIRS, TANKS, AND STANDPIPES: 
 
 Charge this account with all labor and material used in repairing 
 distribution reservoirs, tanks, and standpipes. This includes repair to 
 masonry and linings due to settlement of underlying material, frost 
 action or from other cause; caulking and repairing w r ith cement grout- 
 ing, asphalt or other waterproof material, painting and caulking stand- 
 pipes and tanks, replacing parts due to decay or excessive corrosion 
 or electrolysis, and replacement of hoops, repairs to valves, etc. 
 
 E-25. REPAIRS TO DISTRIBUTION MAINS : 
 
 Charge this account with all labor and material used in repairing, 
 overhauling, changing position of or replacing distribution mains. This 
 includes seeking and repairing leaks, repairs to pipes, replacing and 
 removing worn sections and fittings, caulking, protecting exposed parts 
 of undermined mains, repaving and repairs to manholes, the cost of all 
 supplies used, and expenses in connection with thawing such mains and 
 removing incrustation. 
 
 E-26. REPAIRS TO FIRE CISTERNS, BASINS, FOUNTAINS AND TROUGHS: 
 Charge this account with all labor ar\.d material in repairing fire 
 cisterns and basins, overhauling and changing positions of fountains 
 and troughs. This includes repairs to masonry and lining due to settle- 
 ment of underlying material, due from frost action or from other 
 causes, caulking and repairing with cement and other waterproof 
 material, replacing worn parts and repairs and renewals to connecting 
 piping and fittings, painting, etc. 
 
 E-27. REPAIRS TO SERVICES: 
 
 Charge this account with all labor and material in repairing, over- 
 hauling and changing position of water service connections. This 
 includes such repairs as seeking and repairing leaks, cleaning and 
 scraping out service pipes, repairing and renewing service pipe con- 
 nections to meters, including stop cocks, service boxes, changing and 
 extending old service pipes to put meters in better location, thawing- 
 out service pipes, etc. 
 E-28. REPAIRS TO HYDRANTS : 
 
 Charge this account with all labor and material in repairing hydrants. 
 This includes repairs and renewal of parts, including digging and filling- 
 in connection with such repairs, painting, replacing worn fittings, pro- 
 tecting exposed parts of undermined hydrants and connections, and 
 changing location of hydrants.
 
 CLASSIFICATION OF ACCOUNTS, WATER CORPORATIONS. 41 
 
 E-2!>. REPAIRS TO DISTRIBUTION BUILDINGS, FIXTURES, AND GROUNDS: 
 Charge to this account all labor and material incurred in repairing 
 
 buildings, fixtures and grounds devoted exclusively to the distribution 
 
 system. 
 
 E-30. REPAIRS TO DISTRIBUTION MISCELLANEOUS EQUIPMENT : 
 
 Charge to this account all labor and material repairing miscellaneous 
 
 equipment of the distribution system. This includes repair of tools 
 
 and appliances (working stock only), wagons, harness, automobiles, 
 
 motorcycles, bicycles, furniture and fixtures (when not a permanent 
 
 part of buildings), shoeing horses, etc. 
 
 Commercial Expenses. 
 
 E-31. COLLECTIONS, READING METERS, ETC. 
 
 Charge to this account all salaries and expenses of collection depart- 
 ment employees, taking application for water service, reading meters, 
 preparing, delivering and collecting bills and such expenses as 
 stationery, stamps, etc. ; the premium on surety bonds of employees of 
 the collection department, and fees and commissions paid for collecting 
 bills. 
 
 E-:>2. PROMOTION OF BUSINESS, SALARIES, AND EXPENSES : 
 
 Charge to this account all salaries and expenses of all employees 
 whose services are devoted to the promotion and extension of business, 
 including canvassers, solicitors, demonstrators, distributors of circulars 
 and advertising matter, all commissions paid to canvassers, solicitors 
 and dealers for the introduction and sale of water appliances, etc., and 
 such expenses as stationery and supplies, advertising in newspapers and 
 periodical posters, dodgers, handbills, circulars, etc. 
 
 General Expenses. 
 
 E-:M. SALARIES OF GENERAL OFFICERS : 
 
 Charge to this account the salaries of general officers, including the 
 President, Vice-President, General Manager, Secretary, Treasurer, 
 Comptroller, Auditor, and all other officers whose jurisdiction extends 
 over the entire business and whose services are not chargeable to any 
 particular department. 
 
 E-34. SALARIES OF GENERAL OFFICE CLERKS: 
 
 Charge to this account the salaries of all clerks and assistants con- 
 nected with the general office, except such as may be directly engaged 
 in other departments, in which case their salaries should be charged to 
 such departments direct. Where general office clerks also perform 
 services for other departments, their salartes will be apportioned accord- 
 ingly and charged to the respective departmental account in accordance 
 with service performed.
 
 42 CLASSIFICATION OF ACCOUNTS, WATER CORPORATIONS. 
 
 E-35. MISCELLANEOUS GENERAL OFFICE SUPPLIES AND EXPENSES: 
 
 Charge to this account the cost of all supplies and expenses such as 
 messenger and janitor service, newspapers and periodicals, directories, 
 telegrams, exchange on remittances, books, stationery and telephone, 
 etc., rent of general offices, heating of general offices, etc. ; also traveling 
 and incidental expenses of general officers and attendants. 
 
 E-36. LAW EXPENSES GENERAL: 
 
 Charge to this account all law expenses except those incurred in con- 
 nection with the defense and settlement of injury and damage claims; 
 the salaries and expenses of counsel, solicitors and general attorneys, 
 their clerks and attendants, etc. All law books, printing briefs, legal 
 forms, testimony, reports, fees and retainers of general counsel and 
 attorneys, court costs and payment of specific notarial and witness fees, 
 expenses of taking depositions, and other general law and court 
 expenses. Expenses of arbitrators of disputed points should also be 
 charged to this account. 
 
 E-37. RAILROAD COMMISSION EXPENSE: 
 
 Charge to this account all fees and expenses of counsel, solicitors, 
 attorneys, clerks, attendants, expert witnesses, and others whose services 
 are secured in the defense and prosecution of all petitions and other 
 transactions before the Railroad Commission of California. 
 
 Expenses which are made necessary by rules, regulations, and order 
 of the Commission, as improvement of service, additional inspection, 
 etc., will not be charged to this account but direct to department expense 
 account affected. 
 
 E-38. INJURIES AND DAMAGES: 
 
 Charge to this account all damages to or destruction of property other 
 than that owned by the corporation, and all expenses incident to injury 
 or death to employees, and other persons for whose injury or death the 
 corporation is held liable, or in the settlement of which claim allowances 
 are made. This includes judgment for damages, accident, or death, and 
 plaintiff's court costs, proportion of salaries and expense or fees of 
 physicians and surgeons, expense of undertakers, nurses and hospital 
 attendants, medical and surgical appliances and salaries and expenses 
 paid to disabled employees, salaries and expenses of claim agents, 
 adjusters and their assistants ; the compensation of general counsel and 1 
 attorney of the corporation, and other attorneys while engaged in the 
 defense and settlement of damage suits. 
 
 NOTE A. Corporations are at liberty to subdivide this account to show the follow- 
 ing expenses: 
 
 A. Injuries to Persons. 
 
 B. Damages to Property. 
 
 NOTE B. Where such subdivision is not made, the account should be so kept as to 
 admit of the separation over two such sub-accounts when called for by the Railroad 
 Commission.
 
 CLASSIFICATION OF ACCOUNTS, WATER CORPORATIONS. 43 
 
 E-39. RELIEF DEPARTMENT AND EXPENSES : 
 
 Charge to this account pensions paid to retired employees or represen- 
 tatives of former employees and expenses in connection therewith, 
 salaries and expenses incurred in conducting a relief department, and 
 contributions made to such department. 
 
 E-40. WATER FRANCHISE REQUIREMENTS : 
 
 Charge to this account the cost of all service and materials and sup- 
 plies furnished to municipal corporations in compliance with franchise 
 requirements and for which no payment is received by the corporation ; 
 also of all direct expense, such as paving and other like matters incurred 
 in compliance with such requirements and for which no reimbursement 
 is received by the corporation. Amounts charged to this account for 
 which there is no direct money outlay shall be credited to Account 
 No. E^5, "Undistributed Adjustments Balance. " 
 
 E-41. OTHER GENERAL EXPENSES : 
 
 Charge to this account such incidental general expenses as are not 
 provided for in the foregoing accounts, such as cost of publishing 
 notice of stockholders' meetings, of election of directors, annual reports 
 in newspapers, and of dividends declared; and fees and expenses paid' 
 to directors. 
 
 E-42. INSURANCE: 
 
 Charge to this account premiums paid to insurance companies for 
 fire, fidelity, boilers, casualty, burglary and all other insurance; also 
 amounts set aside as an insurance reserve if it is decided to open such 
 an account. 
 
 E-43. REPAIRS TO GENERAL STRUCTURES: 
 
 Charge to this account the cost of repairing all buildings and other 
 structures of a permanent character devoted to general purposes, such 
 as general office buildings, general shop buildings, general storehouse 
 buildings, general stable buildings, etc. This includes such repairs as 
 all fixtures attached to and made a permanent part of the buildings, 
 such as water pipes and fixtures, steam pipes, and fixtures for warming 
 and ventilating, gas pipes, electric wiring, elevators, etc., and the 
 engines and motors specially provided for operating them, foundation 
 for machinery and apparatus as are designed to be as permanent as the 
 buildings in (or in connection with) which they are constructed, and 
 to outlast the first machinery installed and mounted thereon. 
 
 NOTE. Where general offices, shops, stables, etc., are includible In buildings form- 
 ing a part of the pumping or distribution system, no part of the cost of repairs should 
 be charged to this account.
 
 44 CLASSIFICATION OF ACCOUNTS, WATER CORPORATIONS. 
 
 E-44. REPAIRS OF GENERAL EQUIPMENT: 
 
 Charge to this account the cost of repairing all equipment of general 
 offices, general shops, general stores, and general stables, etc. This 
 includes all repairs of desks, chairs, tables, filing cases, drafting room 
 equipment, etc., and of shops such as furnaces, boilers, engines, machine 
 tools, smithing equipment, shafting, belts, etc. ; and of store such as 
 movable counters, shelving and other movable equipment of like nature, 
 carts, barrows, trucks, etc., and other apparatus used in handling 
 material, and of stables such as wagons, harness, automobiles, bicycles, 
 etc., shoeing horses, and all equipment of shoeing shops. 
 
 NOTE A. Counters, shelving and the like which are permanently attached to the 
 structure shall be charged to Account No. E 43, "Repairs to General Structures." 
 
 NOTE B. The Accounting Corporation may, if it so desires, subdivide the account 
 under sub-accounts, as under, in order to keep record of cost of repairs to various 
 classes of equipment. 
 
 A. General Office Equipment. 
 
 B. General Shop Equipment. 
 
 C. General Store Equipment. 
 
 D. General Stable and Garage Equipment. 
 
 E-45. UNDISTRIBUTED ADJUSTMENTS BALANCE: 
 
 At least once a year an inventory of materials and supplies and of 
 tools shall be taken, and the difference between the inventories and the 
 ledger balances shall be debited or credited to this account in case it 
 can not be assigned to specific accounts as provided under Account 
 Xo. 9. "Materials and Supplies." Credit to this account all discounts 
 recovered through the prompt payment of bills for material and sup- 
 plies consumed in operation unless such discounts are applied to the 
 particular bills; also amounts included in expenses, as provided in 
 Account No. E-40, "Water Franchise Requirements." 
 
 E-46. WATER EXPENSES TRANSFERRED CR. : 
 
 Credit to this account the proportion of operating expenses (includ- 
 ing depreciation and other amortization, as well as repairs) chargeable 
 to other coordinate departments within the same corporation, but 
 defrayed in the first instance by the water department. 
 
 NOTE. Do not credit to this account any allowance in the nature of rent or returns 
 upon the cost or value of property. 
 
 E-47. JOINT OPERATING EXPENSES CR. : 
 
 When any general or miscellaneous operating expenses are assumed 
 by the accounting corporation for the joint benefit of itself and other 
 water corporations under an arrangement for apportioning such ex- 
 pense, the portion chargeable to others should be credited to this 
 account. The portion so credited must not include any allowance for 
 profit or return upon the value of the property. 
 
 NOTE. Bills rendered for joint expenses should show the expenses in detail and 
 the debtor corporation should distribute the total amount to its primary expense 
 accounts.
 
 CLASSIFICATION OF ACCOUNTS, WATER CORPORATIONS. 45 
 
 E-48. EXTRAORDINARY REPAIRS: 
 
 Charge to this account and concurrently credit to account, "Reserve 
 for Extraordinary Repairs," the estimated monthly provision for 
 extraordinary repairs necessitated by sleet storms, fire, floods, etc. 
 
 E-49. REPAIRS CHARGED TO RESERVES CR. : 
 
 Credit to this account and charge concurrently to the account, 
 'Reserve for Accrued Depreciation," an amount equal to the cost of 
 extraordinary repairs for which provision has been made in that 
 reserve; also credit to this account and charge concurrently to the 
 insurers or to the insurance reserve an amount equal to the cost of 
 repairs made necessary by casualties when such cost is covered by insur- 
 ance or an insurance reserve. All such repairs should be charged in the 
 first instance to the proper repair accounts. 
 
 TAXES. 
 
 E-50. TAXES: 
 
 This account should be charged (account Taxes Accrued being cred- 
 ited) regular monthly installments sufficient to cover all taxes imposed 
 by lawful authority. 
 
 A. Upon property real, personal and mixed (except assessments 
 for betterment to real estate, which should be charged to account 
 benefited). 
 
 B. Upon earnings in addition to or in lieu of taxes upon 
 property. 
 
 C. All specific licenses or charges levied upon the corporation 
 based upon or with respect to its capital stock, property or business. 
 
 D. The value of all discounts allowed or services rendered in 
 lieu of taxes. 
 
 NOTK. The amount of taxes accrued during any month shall, when the levy is 
 unknown, be estimated, and when the levy is finally determined the estimate shall be 
 corrected in the provision for taxes during the remainder of the year. For example, 
 if at the beginning of the tax year the taxes against the corporation are estimated 
 to be $600 for the year, the estimated monthly charge will be $50. If during the 
 fifth month it is found that the levy is $640, adjustment should be made and a charge 
 of $55 per month made to Taxes for the remaining eight months of the tax year. 
 
 GENERAL AMORTIZATION OF CAPITAL. 
 
 E-51. AMORTIZATION OF FRANCHISES AND PATENTS : 
 
 Charge to this account each month the amount necessary to cover 
 such portions of the life of franchises and patents as has expired or 
 been consumed during the month. The amount so charged shall be 
 concurrently credited to an appropriate sub-account under Account 
 No. 30, "Reserve for Amortization of Intangible Capital." 
 
 NOTE. The amount so charged to this account shall be based upon a rule deter- 
 mined by the accounting corporation and filed with the Railroad Commission. The 
 purpose and effect of such rule should be to accumulate by charges equitably dis- 
 tributed throughout the life of any franchise or patent, a reserve that will, at the 
 expiration of its life, equal the original cost.
 
 46 CLASSIFICATION OF ACCOUNTS, WATER CORPORATIONS. 
 
 E-52. DEPRECIATION OF PLANT AND EQUIPMENT : 
 
 Charge to this account monthly the amount estimated to be necessary 
 to cover the depreciation accruing during the month in the corporation 's 
 tangible capital. The amount charged to this account shall be concur- 
 rently credited to account, " Reserve for Accrued Depreciation." 
 
 NOTE. Charges to above depreciation account should be reported separately under 
 the following sub-heads : 
 
 A. Depreciation on Pumping Capital. 
 
 B. Depreciation on Distribution Capital. 
 
 C. Depreciation on General Capital. 
 
 CLEARING ACCOUNTS. 
 
 (Not required of Class B and C Corporations.) 
 
 The following accounts are provided for certain expenses which 
 usually affect several classes of operations but need to be brought 
 together in one account in order that the total of the expenses may be 
 known and properly distributed. 
 
 An inventory of tools, harness, vehicles, and other materials and 
 supplies in shops, stores, stables, and garages shall be taken at least 
 once a year, and any loss disclosed by such inventory in excess of the 
 amount taken into account through the depreciation currently charged 
 out should be apportioned to the appropriate expense accounts on the 
 basis of charges made since last inventory. 
 
 1. Shop Expense. This account or appropriate sub-accounts should 
 be arranged so as to record separately the expenses of the general shops 
 as follows: (1) Salary and wages of shop employees ; (2) personal and 
 incidental expenses of such employees; (3) materials and supplies for 
 general shop use ; (4) repairs of tools, machinery and appliances ; 
 
 (5) rent of shop buildings; (6) depreciation of tools, machinery, and 
 appliances. 
 
 The shop expense account should be cleared by apportioning the 
 total amount of the expenses to the various jobs on an equitable basis. 
 
 2. Stable and Garage Expense. This account or appropriate sub- 
 accounts should be arranged so as to record separately the expenses of 
 stables and garages as follows: (1) Salaries and wages of drivers, 
 chauffeurs, stablemen, garagemen, and other employees in stables and' 
 garages; (2) personal and incidental expenses of such employees; 
 (3) materials and supplies, including fuel and gasoline, harness, tires, 
 and other supplies for stables and garages; (4) repairs of automobiles 
 and other vehicles and harness; (5) rent of buildings or vehicles; 
 
 (6) depreciation on vehicles, horses, harness, etc. 
 
 Credit to this account any charges for service performed for others. 
 
 A record should be kept of the use of teams and automobiles, and 
 each month the total expense should be apportioned to the proper 
 accounts according to use, or the debits to the. expense accounts may be
 
 CLASSIFICATION OF ACCOUNTS, WATER CORPORATIONS. 47 
 
 made at rates per hour of service which have been found to be fair and 
 to distribute the total expense equitably. 
 
 3. Tool Expense. Charge to this account all expense for tools (except 
 shop tools carried as supplies unissued). It includes the cost of small 
 hand tools of which no account is kept after issue ; the cost of repairing 
 tools : the cost of tools lost or stolen, and depreciation on tools taken out 
 of service because of breakage or other deterioration. 
 
 This account should be cleared by adding to the expense of repairs 
 and cost of plant installed each month such amounts as will equitably 
 distribute the total monthly expense for tools. 
 
 4. Supply Expense. Charge to this account or to appropriate sub- 
 accounts all expenses (except insurance and taxes) incurred directly 
 in connection with the purchase, storage, handling, and distribution of 
 materials and supplies and stationery. It includes the pay and expenses 
 of purchasing agents, managers of stores, clerks, and laborers ; rents of 
 stores, cost of lighting, heating, and undistributed freight and express 
 charges, and the estimated depreciation on supplies due to breakage, 
 leakage, shortage, and wear and tear. This account should be cleared 
 by adding to the cost of materials and supplies passing through stores 
 a suitable loading charge which will equitably distribute the total 
 cost of conducting the stores, and by adding to the cost of such supplies 
 as are bought by the purchasing department pro rata share of the total 
 expenses of the purchasing department. 
 
 5. Engineering Expense. Charge to this account or appropriate sub- 
 accounts all expenses for engineering so as to show separately the 
 following: (1) Salaries and wages; (2) personal and incidental ex- 
 penses of engineering department employees; (3) rent of office and 
 office expenses. 
 
 This account should be cleared by apportioning the total expenses to 
 Operating Expense and Fixed Capital accounts on the basis of service 
 rendered, as determined by the actual time devoted to particular jobs 
 or an equitable basis fixed by the officers of the corporation. 
 
 6. Plant Supervision Expense. Charge to this account the cost of 
 general supervision of the maintenance and construction of the plant 
 where a separate department of the corporation's organization is 
 charged with such supervision. It includes the pay and expenses of 
 the plant supervising officers, such as the general plant superintendent, 
 district plant superintendent, plant engineers and their office and field 
 forces, charged with planning for and superintending the work of 
 maintenance and plant construction. 
 
 The account or appropriate sub-accounts should be so arranged as to 
 show in detail the expenses of the plant supervision department as 
 follows: (1) Salaries and wages; (2) personal and incidental expenses 
 of employees; (3) rent of offices and office expenses.
 
 48 CLASSIFICATION OP ACCOUNTS, WATER CORPORATIONS. 
 
 This account should be cleared each month by charging directly to 
 the appropriate accounts such expenses as can be allocated to particular 
 pieces of work and by charging out the balance on the basis of labor 
 employed in all construction or maintenance work in progress during 
 the month. 
 
 NOTE. The pay of general foremen and foremen in direct charge of jobs should 
 be included in the cost of the job and not charged to this account. 
 
 Every water corporation shall include in its expenses depreciation 
 charges for the purpose of creating proper and adequate reserves to 
 cover the expenses of depreciation currently accruing in its fixed 
 capital, and for that purpose three accounts are provided for the 
 expense of depreciation as above: Account E-52, "Depreciation of 
 Plant and Equipment"; Account E-48, "Extraordinary Repairs"; 
 Account E-51, "Amortization of Franchises and Patents." 
 
 By "Expense of Depreciation" is meant the loss suffered through 
 the current lessening in value of tangible property from wear and 
 tear, decay, obsolesence, or inadequacy resulting from use, age, physical 
 change or supersession by reason of new inventions and discoveries, 
 changes in popular demand, or public requirements ; also losses suffered 
 through destruction of property by extraordinary casualties and de- 
 creases in the values of intangible property through lapse of time. 
 
 The amount charged as expense of depreciation shall be based upon 
 values determined by the accounting corporation. Such rules may be 
 devised from a consideration of the corporation's history and experi- 
 ence. Whatever may be the basis, the rules and a sworn statement of 
 the facts and expert opinions and estimates upon which they are based 
 shall be filed with the Railroad Commission. Each amendment of any 
 rule, together with statements and opinions, shall be also filed with the 
 Railroad Commission, before they are put into effect by the accounting 
 corporation, and shall show the date when they are to become effective.
 
 WATER CORPORATIONS. 
 
 LIST Of ACCOUNTS. BALANCE SHEET ACCOUNTS. 
 
 ASSET ACCOUNTS. 
 
 PAGE. 
 
 1. Fixed Capital Installed Prior to January 1, 1913 6 
 
 2. Fixed Capital Installed Since December 31, 1912 7 
 
 3. Cash and Deposits 7 
 
 A. Cash 7 
 
 B. Special Deposits 7 
 
 4. Notes Receivable 7 
 
 5. Accounts Receivable , 7 
 
 A. Accounts with System Corporations 7 
 
 B. Due from Consumers and Agents 8 
 
 C. Miscellaneous Accounts Receivable 8 
 
 6. Interest and Dividends Receivable 8 
 
 7. Other Current Assets 8 
 
 s. Investments. S 
 
 A. Securities of Other Corporations 8 
 
 B. Advances to System Corporations for Construction, Equipment and 
 
 Betterment 9 
 
 C. Miscellaneous Investments 9 
 
 9. Materials and Supplies 9 
 
 10. Sinking Funds 10 
 
 11. Other Special Funds 10 
 
 12. Treasury Securities 10 
 
 13. Prepaid Expenses 10 
 
 A. Prepaid Rents 10 
 
 B. Prepaid Taxes 10 
 
 C. Prepaid Insurance 11 
 
 D. Other Prepayments 11 
 
 14. Unamortized Discount on Securities and Expense 11 
 
 15. Other Suspense 11 
 
 16. Construction Work in Progress 12 
 
 17. Corporate Deficit 12 
 
 LIABILITY ACCOUNTS. 
 
 IS. Capital Stock 12 
 
 19. Installments on Stork Subscription 12 
 
 20. Funded Debt 12 
 
 21. Receiver's Certificates 13 
 
 22. Advances from System Corporations for Construction, Equipment and 
 
 Betterments 13 
 
 23. Notes Payable 13 
 
 24. Accounts Payable 13 
 
 A. Accounts with System Corporations 13 
 
 B. Audited Vouchers and Wages Unpaid 13 
 
 C. Consumer's Deposits 14 
 
 D. Miscellaneous Accounts Payable . 14
 
 50 CLASSIFICATION OP ACCOUNTS, WATER CORPORATIONS. 
 
 PAGE. 
 
 25. Interest Accrued 14 
 
 26. Taxes Accrued 14 
 
 27. Dividends Declared 14 
 
 28. Service Billed in Advance 14 
 
 29. Reserve for Accrued Depreciation 15 
 
 30. Reserve for Amortization of Intangible Capital 15 
 
 31. Unamortized Premium on Debt 15 
 
 32. Casualty and Insurance Reserve 16 
 
 33. Income Invested since December 31, 1912, in Fixed Capital 16 
 
 34. Reserve Invested in Sinking Funds 17 
 
 35. Other Reserves from Income or Surplus 17 
 
 36. Corporate Surplus Unappropriated 17 
 
 FIXED CAPITAL. 
 Intangible Capital. 
 
 C- 1. Organization 17 
 
 C- 2. Franchises and Water Rights 18 
 
 C- 3. Patent Rights 18 
 
 C- 4. Other Intangible Capital _' 19 
 
 TANGIBLE CAPITAL. 
 
 Landed Capital. 
 
 C- 5. Land Devoted to Water Operations 19 
 
 Pumping Capital. 
 
 C- 6. Buildings, Structures, etc 19 
 
 C- 7. Pumping Equipment 20 
 
 C- 8. Collecting Aqueducts, Intakes and Supply Mains 20 
 
 C- 9. Purification System 20 
 
 C-10. Miscellaneous Pumping Equipment 21 
 
 Distribution Capital. 
 
 C-ll. Transmission Mains 21 
 
 C-12. Distribution Mains 21 
 
 C-13. Services 21 
 
 C-14. Hydrants, Fire Cisterns, Fountains, etc 21 
 
 C-15. Meters 22 
 
 C-16. Miscellaneous Distribution Equipment 22 
 
 General Capital. 
 
 C-17. General Structures 22 
 
 C-18. General Equipment 23 
 
 C-19. Undistributed Construction Expenditures 23 
 
 A. Engineering and Superintendence 23 
 
 B. Law Expenses during Construction 24 
 
 C. Injuries and Damages during Construction 24 
 
 D. Taxes during Construction 24 
 
 E. Miscellaneous Construction Expenditures 24 
 
 C-20. Interest during Construction 25 
 
 C-21. Cost of Plant Purchased in Lieu of Plant Constructed 25 
 
 C-22. Fixed Capital in Other Departments 25 
 
 C-23. Fixed Capital Installed Prior to January 1, 1913 25 
 
 C-24. Fixed Capital Installed Since December 31, 1912 26
 
 INDEX. 51 
 
 INCOME ACCOUNTS. 
 
 PAGE. 
 
 101. Operating Revenues 26 
 
 102. Operating Expenses 26 
 
 103. Uncollectible Water Bills 27 
 
 104. Non-operating Revenues 27 
 
 A. Rents from Buildings. Land and Apparatus 27 
 
 B. Interest and Dividend Revenues 27 
 
 C. Sinking and Other Reserve Fund Accretions 27 
 
 D. Profits from Operations of Others 27 
 
 E. Miscellaneous Non-operating Revenues 28 
 
 105. Non-operating Revenue Deductions 28 
 
 A. Rent Expenses 28 
 
 B. Interest Expense 28 
 
 C. Dividend Expense 28 
 
 D. Others' Operations Expense 28 
 
 E. Miscellaneous Non-operating Expense 28 
 
 F. Non-operating Taxes 28 
 
 G. Uncollectible Non-operating Revenues 28 
 
 106. Interest Accrued on Funded Debt 29 
 
 107. Other Interest Deductions 29 
 
 108. Rent Deductions ' 29 
 
 A. Rent for Lease of Other Water Plant 29 
 
 B. Miscellaneous Rent Deductions 29 
 
 109. Amortization of Debt Discount and Expense 1_ 29 
 
 110. Amortization of Premium on Debt Cr 30 
 
 111. Miscellaneous Deductions from Income 30 
 
 A. Loss on Operations of Others 30 
 
 B. Amortization of Landed Capital 30 
 
 C. Other Contractual Deductions from Income 30 
 
 CORPORATE SURPLUS OR DEFICIT ACCOUNT. 
 
 112. Dividends on Outstanding Stock 31 
 
 113. Sinking Fund Appropriations 31 
 
 114. Miscellaneous Deductions from Surplus 31 
 
 A. Expenses Unprovided for Elsewhere 31 
 
 B. Realized Depreciation not Covered by Reserve 32 
 
 C. Amortization Unprovided for Elsewhere 32 
 
 D. Gifts to Controlled Corporations 32 
 
 E. Appropriations to Reserve 32 
 
 F. Other Appropriations from Surplus 32 
 
 G. Other Deductions from Surplus 32 
 
 115. Miscellaneous Additions to Surplus 32 
 
 OPERATING REVENUES. 
 
 R-l. Earnings from Commercial Sales 33 
 
 R-2. Earnings from Industrial Sales 33 
 
 R-3. Earnings from Municipal Hydrants Rentals 33 
 
 R-4. Earnings from Sales for Street Sprinkling 34 
 
 R-5. Earnings from Sales to Municipal Departments 34 
 
 R-6. Earnings from Sales for Irrigation 34 
 
 R-7. Miscellaneous Earnings from Operation . 34
 
 52 CLASSIFICATION OF ACCOUNTS, WATER CORPORATIONS. 
 
 OTHER OPERATING REVENUES. 
 
 PAGE. 
 
 R-8. Profit on Merchandise Sales 34 
 
 K-!>. Profit on Piping and Connections 34 
 
 PUMPING EXPENSES. 
 CLASS A. 
 
 E- 1. Superintendence 36 
 
 E- 2. Pumping Labor 36 
 
 E- 3. Purification Labor , 36 
 
 E- 4. Miscellaneous Labor 36 
 
 E- 5. Fuel for Steam 36 
 
 E- 6. Power Purchased 36 
 
 E- 7. Lubricants, etc. 37 
 
 E- 8. Purification Supplies and Expenses 37 
 
 E- 9. Miscellaneous Pumping Station Supplies and Expenses 37 
 
 E-10. Repairs to Power Pumping Equipment 37 
 
 E-ll. Repairs to Boiler Room Auxiliary Equipment 37 
 
 E-12. Repairs to Pumping Station Auxiliary Equipment 37 
 
 E-13. Repairs to Pumping Station Miscellaneous Equipment 38 
 
 E-14. Repairs to Surface Source of Supply 38 
 
 E-15. Repairs to Ground Source of Supply 38 
 
 E-16. Repairs to Collecting Aqueducts, Intakes and Supply Mains 38 
 
 E-17. Repairs to Purification Plant 38 
 
 E-18. Repairs to Pumping Station, Buildings, Fixtures and Grounds 39 
 
 CLASS B. 
 
 E- 1 to E- 4. Operating Labor 36 
 
 E- 5 to E- 6. Fuel and Power Purchased 36 
 
 E- 7 to E- 9. Pumping Station Supplies and Expenses 37 
 
 E-10 to E-13. Repairs to Pumping Station Equipment 37,38 
 
 E-14 to E-lo. Repairs to Source of Supply 38 
 
 E-16. Repairs to Collecting Aqueducts, Intakes, and Supply Mains 38 
 
 E-17 to E-18. Repairs to Buildings, Grounds and Purification Plant 38,39 
 
 CLASS C. 
 
 E- 1 to E- 9. Operating Labor and Expenses 36, 37 
 
 E-10 to E-1S. Repairs to Operating Capital 37.38,39 
 
 DISTRIBUTION EXPENSES. 
 CLASS A. 
 
 E-19. Patrolling Storage Facilities 39 
 
 E-20. Meter and Fitting Department Expenses and Supplies 39 
 
 E-21. Street Department Expenses and Supplies 39 
 
 E-22. Customers' Premises Expenses 39 
 
 E-23. Repairs to Transmission Mains 39 
 
 E-24. Repairs to Reservoirs, Tanks and Standpipes 40 
 
 E-25. Repairs to Distribution Mains 40 
 
 E-26. Repairs to Fire Cisterns, Basins, Fountains and Troughs 40 
 
 E-27. Repairs to Services 40 
 
 E-28. Repairs to Hydrants 40 
 
 E-29. Repairs to Distribution Buildings and Grounds 41 
 
 E-30. Repairs to Distribution Miscellaneous Equipment. _ 41
 
 INDEX. 53 
 
 (.JLASS B. PAGE 
 
 E-19 to B-20. Distribution System Labor and Expense 39 
 
 E-23 to E-20. Repairs to Transmission and Distribution Systems 39,40 
 
 E-27 to 18-28. Repairs to Services 40 
 
 E-29 to E-30. Repairs to Buildings, Grounds and Equipment 41 
 
 CLASS C. 
 
 E-19 to B-22. Distribution System Labor and Expense 39 
 
 E-23 to E-30. Repairs to Distribution and Transmission Capital 39,40,41 
 
 COMMERCIAL EXPENSES. 
 CLASS A. 
 
 E-31. Collections, Reading Meters, etc 41 
 
 E-32. Promotion of Business, Salaries and Expenses 41 
 
 CLASS B. 
 
 E-31 to E-32. Collection and Promotion of Business Expense 41 
 
 CLASS C. 
 
 E-31 to E-32. Collection and Promotion of Business Expense ^ 41 
 
 GENERAL EXPENSES. 
 CLASS A. 
 
 E-33. Salaries of General Officers 41 
 
 E-34. Salaries of General Office Clerks 41 
 
 E-35. Miscellaneous General Office Supplies and Expenses 42 
 
 E-36. Law Expenses General : 42 
 
 E-37. Railroad Commission Expense 42 
 
 E-38. Injuries and Damages 42 
 
 E-39. Relief Department and Expense 43 
 
 E-40. Water Franchise Requirements 43 
 
 E-41. Other General Expenses 43 
 
 E 12. Insurance 43 
 
 E-43. Repairs of General Structures 43 
 
 E-44. Repairs of General Equipment 44 
 
 E-45. Undistributed Adjustments Balance 44 
 
 E-4G. Water Expenses Transferred Cr 44 
 
 E-47. Joint Operating Expenses Cr 44 
 
 E-48. Extraordinary Repairs 45 
 
 E-49. Repairs Charged to Reserve Cr 45 
 
 CLASS B. 
 
 E-33 to E-35. General Officers and Clerks' Salaries 41,42 
 
 E-3G. Law Expenses General 42 
 
 E-37. Railroad Commission Expense 42 
 
 E-38. Injuries and Damages . 42 
 
 E-39 to E-41. Miscellaneous General Expenses . 43 
 
 E-42. Insurance 43 
 
 E-43 to E-44. Repairs of General Structures and Equipment 43,44 
 
 E-45 to E-49. Other General Expenses 44,45 
 
 CLASS C. 
 
 E-33 to E-49. General Expense 41,42, 43, 44, 45
 
 54 CLASSIFICATION OF ACCOUNTS, WATER CORPORATIONS. 
 
 TAXES. 
 CLASS A. PAGE 
 
 E-50. Taxes 45 
 
 CLASS B. 
 
 E-50. Taxes 45 
 
 CLASS C. 
 E-50. Taxes _ - 45 
 
 GENERAL AMORTIZATION OF CAPITAL. 
 CLASS A. 
 
 E-51. Amortization of Franchises and Patents 45 
 
 E-52. Depreciation of Plant and Equipment 46 
 
 CLASS B. 
 
 E-51 to E-52. Depreciation, etc. 45,46 
 
 CLASS C. 
 E-51 to E-52. Depreciation, etc. 45,46 
 
 CLEARING ACCOUNTS. 
 
 1. Shop Expenses 46 
 
 2. Stable and Garage Expenses 46 
 
 3. Tool Expenses 47 
 
 4. Supply Expenses 47 
 
 5. Engineering Expenses 47 
 
 6. Plant Supervision Expenses 47