HF DOCUMENTS DEPT. UC-NRLF B 3 DTD TDE GIFT OF DOCUMENTS DEPT. G dTi a i« STATE OF NEW YORK NOV 25 1918 Public Service Commission SECOND DISTRICT w* Uniform System of Accounts for Gas Corporations SECOND CONDENSED SCHEME For Corporations Having Gross Operating Revenues from Gas Operations Amounting to Less Than $100,000 Per Annum ADOPTED DECEMBER 16, J908 ALBANY J. B. LYON COMPANY, STATE PRINTERS 1908 » ** STATE OF NEW YORK Public Service Commission SECOND DISTRICT Albany. December 21, 1908. To The following order has been adopted by this Commission, and is hereby served on you. Please acknowledge receipt at once, using the form inclosed herewith. Yours very truly, State or New York, ) Office ot tbe public Service Commissions ss - : SECOND DISTRICT ) I have compared the following copy with the original on file in this office, 1 I do HEREBY CERTIFY the same to be a correct transcript therefrom ad of the whole thereof. ICUtnCSS my hand and the Seal of Office of the Public Ser- vice Commission, Second District, at the City of Albany, this twenty-first day of December, one thou- sand nine hundred and eight. » Secretary. 274660 State of New York, Public Service Commission, Second District. At a session of the Public Service Commission, Second District, held at the Capitol, Albany, on the Kith day of December, 1908. Present : Frank VV. Stevens, Chairman, Thomas M. Osborne, Martin S. Decker, James E. Sague, John B. Olmsted, Commissioners. Ordered: That, except as hereinafter provided: 1. On and after January 1, 1909, every gas corporation whose revenues from gas operations as denned in the hereto annexed schedule marked " Schedule A" were, during the year ended June 30, 1907, below the sum of one hundred thousand dollars ($100,000) shall keep upon its books the accounts prescribed or defined in the said " Schedule A", so far as the said, accounts are pertinent to the facts and circumstances of the said corporation. The term gas corporation is used herein in the sense defined in the Public Service Commissions Law (except that corporations whose operations are confined exclusively to natural gas, gasoline gas, and acetylene, are excluded herefrom ) . 2. On and after the date of service of this order on any such gas cor- poration, such corporation shall not charge to any account representing cost of property any discount or commission on securities issued by the said corporation, but shall charge all such discounts, commissions, and other expense connected with the issue of securities subsequent to the said date of service, in accordance with the directions contained in the definitions of the account named Organization, and the account named Unamortized Debt Dis- count and Expense, in the said " Schedule A". 3. On and after January 1, 1909, every such gas corporation shall keep upon its books the accounts prescribed or defined in the hereto annexed schedule marked " Schedule B ", so far as the same are pertinent to the facts and circumstances of the said corporation. 4. During the year beginning January 1, 1909, any said corporation may for purposes of comparison with prior years keep on its books any account pertaining to revenues, revenue deductions, income deductions, and appro- priations (as defined in the said " Schedule B ") which it had on its books during the year begun January 1, 1908; provided that on or before January 1, 1909, there be filed with the Public Service Commission a statement con- taining a list of the said accounts pertaining to the year begun January 1, 1908, and definitions of such accounts. 5. For purposes of improving the efficiency of administration and operation, any corporation may, unless or until otherwise ordered, keep upon its books [3] 4 Public Service Commission, Second District any temporary or experimental accounts and any accounts covering particular divisions of its operations, provided that in respect of each such temporary, experimental, or divisional account, the said corporation shall file with the Public Service Commission, at least ten days in advance of the time when the said account is to be instituted, a statement showing the name of the said account, the date when it is to be instituted, the purpose for which it is to be kept, the period of time during which it is to be kept, and a clear and accurate definition of the classes of items and facts to be contained in the said account; and in case of a divisional account, the definition of the division covered. Upon compliance with the provisions of this paragraph, any account herein prescribed or defined in either said " Schedule A" or said " Schedule B " may be subdivided. 6. All notices herein required to be filed concerning accounts shall be upon sheets 9y 2 inches by 12 inches in size, and shall be entitled in the name of the corporation filing said notices, followed by a brief statement of the charac- ter of the accounts covered by the notice. SCHEDULE A. BALANCE SHEET OR INDICANT ACCOUNTS. i. Gas Corporations and Gas Operations defined. — Section 2 of the Public Service Commissions Law defines gas corporation as follows: § 2. The term " gas corporation "... includes every corpora- tion, compcny, association, joint stock association, partnership and person, their lessees, trustees or receivers appointed by any court whatsoever, owning, operating, managing or controlling any plant or property for manufacturing and distributing and selling for distribution or distributing illuminating gas (natural or manufac- tured) for light, heat or power. Gas operations, as the term is hereinafter used, include all acts and transactions directly connected with the operation of a plant for the pro- duction of gas (whether natural or manufactured), the transmission thereof and the supply thereof to consumers for light, heat, or power, and all operations incident thereto, including the collection of revenues therefor and the disposition of byproducts produced in connection therewith. 2. Accounts to he kept by double-entry method. — All accounts kept by any corporation or person within the scope of the present order shall on and after January 1, 1909, be kept by the double-entry method. Note. — This requirement is not intended to apply to purely statistical accounts. CAPITAL ACCOUNTS. 3. Capital defined. — As the term is used herein, ty capital of a corporation is meant all property devoted to the rendering of the services or the pro- duction of the commodities which are within the purposes of the corporation. 4. Fixed Capital defined. — Capital which has an expectation of life in service of more than one year (exception being made of hand and other small portable tools liable to be lost or stolen 1 ) is called fixed capital. 5. Floating Capital defined. — Capital other than fixed capital is called float- ing capital. 6. General Capital and Departmental Capital defined. — Fixed capital is di- visible into general capital and departmental capital, general capital being that which is indiscriminately available for the uses of two or more classes of operations, while departmental capital is that assigned solely or principally to a single class of operations. 1 Hand and other small portable tools liable to be lost or stolen shall, when first* acquired and before issued for use, be carried in a suitable Materials and Supplies account; when issued they shall be charged to the appropriate expense account. Portable tools and apparatus of special value may, however, be charged to the appropriate tangible capital account, and remain therein so long as record is kept of the persons to whom such tools and apparatus are issued and such persons are made responsible therefor. 15] 6 Public Service Commission, Second District 7. Landed Capital and Non-landed Capital defined.— Fixed capital is also divisible into landed capital and non-landed capital. Landed capital includes all interests in land (exclusive of improvements thereon) the term of which is more than one year. All other fixed capital is herein called non-landed capital. 8. Intangible and Tangible Capital distinguished.— Non-landed capital is divisible into intangible and tangible. Intangible capital comprises organ- ization, franchises, patent-rights, and all other intangible property within the definition of fixed non-landed capital as above stated. Tangible capital comprises structures and equipment having an expectation of life in service of more than one year. Because of their liability to loss or theft, hand and other small portable tools are excepted from tangible capital, and the cost of such tools when issued is required to be treated as a part of the operating expenses. 1 9. Further Classification of Capital.— Capital is also divisible into original capital, additions, betterments, and renewals and replacements, as defined below. Charges to capital accounts shall show these divisions as set forth in paragraph 21, infra. 10. Original Capital defined. — Original capital is that put into service at the outset of an enterprise. 11. Additions defined. — Additions include additional structures, facilities, or equipment not taking the place of anything previously existing. 12. Betterments defined. — Betterments include the enlargement or improve- ment of existing structures, facilities, and equipment. 13. Renewals defined. — Renewals include all extensions of terms of years in land and tangible fixed capital, and all extensions of the life period of franchises and other intangible fixed capital. 14. Replacements defined. — Replacements include all substitutions for capi- tal exhausted or become inadequate in service, the substitutes having sub- stantially no greater capacity than the things for which they were substi- tuted. When a substitute has a substantially greater capacity than that for which it is substituted, the cost of substitution of one of the same capacity as the thing replaced should be charged as a replacement, and the remaining portion of the cost of the actual substitute should be charged as a betterment. 15. Repairs defined. — When through wear and tear or through casualty it becomes necessary to replace some part of any structure, facility, or unit of equipment, and the extent of such replacement does not amount to a sub- stantial change of identity in such structure, facility, or unit of equipment, the replacement of such part is to be considered a repair, and the cost of such repair is to be treated as an operating expense and must not be charged as a replacement in any capital account. 1 Hand and other small portable tools liable to be lost or stolen shall, when first acquired and before issued for use, be carried in a suitable Materials and Supplies account ; when issued they shall be charged to the appropriate expense account. Portable tools and apparatus of special value may, however, be charged to the appropriate tangible capital account, and remain therein so long as record is kept of the persons to whom such tools and apparatus are issued and such persons are made responsible therefor. Accounts foe Gas Coepoeations 7 16. First entries must enable identification.— Throughout all capital ac- counts, the first entry in respect of any particular thing shall describe it with such particularity as to enable its identification, and shall give it a distinguishing name, number, or other designation by which it shall there- after be designated in every entry in any capital account which in any way concerns it. In the case of continuous structures like railroad track, or electric line, or pipe line, such structures shall be itemized to the extent that no item shall contain more than one operating division or more than one type of construction, and the first entry in relation to any item shall describe the size, weight, type, and other principal physical characteristics of the chief constituent parts, together with their spacing if discontinuous. 17. Costs of new capital to be actual .money costs. — All charges made to capital or other accounts on or after January 1, 1909, shall be the actual money cost of the things in respect of which they are made. When the con- sideration actually given for the thing in respect of which a charge to a capital account is made is anything other than money, the actual considera- tion shall be described in the entry with sufficient fullness and particularity to identify it, and the amount charged shall be the actual money value of such consideration at the time of the transaction. 18. Discounts upon securities not to be charged to capital accounts. — Dis- counts upon securities and other commercial paper issued in payment for capital are to be provided for in other accounts and must in no case be charged to the capital accounts. 19. Costs of labor, materials, and supplies. — Cost of labor (employed in construction) includes not only wages, salaries, and fees paid employees, but also such personal expenses of employees as are borne by the corporation. Cost of materials and supplies consumed in construction is the cost at the places where they enter into construction, including cost of transportation and inspection when specifically assignable. If such materials and supplies are passed through storehouses, their cost entered in the account may include a suitable proportion of store expense. 20. Withdrawals or retirements. — When anything is withdrawn or retired from service, the amount at which such thing stood charged in the capital account shall be credited to the capital account in which it stood charged at the time of withdrawal, and the entry of such credit shall cite by name and page of book or other record the original entry of cost of the thing withdrawn. If there is no such original entry, that fact shall be stated in connection with the credit entry, and the actual amount originally charged shall be credited. If such amount is not known, it shall be estimated, the facts upon which the estimate is based shall be shown, and the amount thus estimated to be the original charge in respect of such thing withdrawn shall be credited. 21. Particulars required to be shown in entries. — Every charge made to * capital account on or after January 1, 1909, shall show whether the thing in respect of which the charge is made is original capital, or an addition, a betterment, a renewal, or a replacement. If the thing is a betterment, the entry shall designate the thing enlarged or improved and shall cite by name and page of book or other record the original entry of cost of such thing 8 Public Service Commission, Second District enlarged or improved. If the thing to which any charge hereafter made relates is a renewal or a replacement, the entry made in respect thereof shall designate the thing renewed or replaced and shall cite by name and page of book or other record the original entry or entries of cost of such thing renewed or replaced. If there is no entry in the accounts of the corporation showing the cost (to the corporation) of the thing bettered, re- newed, or replaced, that fact shall be stated in the entry describing the betterment, renewal, or replacement, and the original cost of such thing to the corporation shall be stated. Such cost shall be estimated if not known, and when estimated the basis of such estimation shall be shown. 22. Betterments involving partial destruction of thing bettered. — If any betterment involves the partial destruction or partial reconstruction of the thing bettered, only such portion of the cost of the change shall be charged as a betterment as will when added to the original cost (estimated if not known) of the thing bettered give the cost of reconstruction or replacement of the thing as bettered, and the remainder of the cost of the change (account being taken of any salvage) shall be charged to the appropriate repair account. E. g., a building, original cost unknown but estimated to be $15,000, is bettered by tbe construction of an elevator shaft, and its stairways are modified so as to be fireproof ; the actual expenditure for these changes is $3,000 ; the estimated cost of replacement of the building (as modified) with one equally serviceable and with an equal expectation of life is $16,000 ; the charge to capital account as a better- ment should be $1,000, and the remainder ($2,000) of the expenditure should be charged to the appropriate repairs account. 23. Plant and equipment and other capital purchased. — When any fixed capital in the form of a going or completed plant is purchased, an appraisal of such capital so acquired shall be made, and the. different constituent ele- ments of the plant (and equipment, if any) or other capital acquired shall be appraised at their structural value ; that is to say, at the estimated cost of replacement or reproduction less deterioration to the then existing condi- tion through wear and tear, obsolescence, and inadequacy. If the actual money value of the consideration given for the plant or other capital was at the time of the acquisiticn in excess of such appraised value, the excess shall be charged to the account " Other Intangible Gas Capital," and the appraised values of the constituent elements shall be charged to the appro- priate accounts as designated in the following definitions of accounts for fixed capital. If the actual money value of the consideration given was not in excess of such appraised value, such actual money value shall be distributed through the said accounts in proportion to the said appraised value of the constituent elements appropriate to the respective accounts. Full report of the contract of acquisition, the consideration given therefor, the determina- tion of the actual money value of such consideration, the appraisal, and the amounts charged to the respective accounts for each plant or other such fixed capital purchased, will be required to be made to the Public Service Commis- sion, and the purchaser will be required to procure in connection with the acquisition of any such plant or other fixed capital all existing records, memo- randa, and accounts in the possession or control of the grantor relating to the construction and improvement of such plant, and to preserve such records, memoranda, and accounts until authorized by law to destroy or otherwise dispose of them. Accounts foe Gas Coeporations 9 24. Definitions of Fixed Capital accounts. — In the following definitions of accounts the letters and numbers prefixed to the titles are inserted solely for convenience of reference and are no part of the titles or of the definitions: G100. Fixed Capital, December 31, 1908. Charge to this account all the Fixed Capital of the accounting person or corporation devoted to gas operations as such capital stood at the close of December 31, 1908. Such charges shall be made at the figures at which such capital was carried on the books of the said person or corporation on that date. When any capital included in such account is retired from service, the amount at which it is charged therein shall be credited to this account; the amount of depreciation or other amortization thereon appli- cable to the period subsequent to December 31, 1908, shall be charged to account No. 374, "Accrued Amortization of Capital," proper account shall be taken of any salvage, and the remainder of the amount originally charged to capital shall be concurrently charged to the Corporate Surplus or Deficit account (or equivalent account carried on the books on December 31, 1908), unless there was carried on the books at that date a reserve to cover retire- ment of capital from service, in which case the said concurrent charge shall be made to such retirement reserve account. If the amount at which the said capital in service on December 31, 1908, and subsequently retired from service, was included in the said account is not disclosed on the books and records of the accounting person or corporation and is not within the knowledge of such person or corporation or officers or other employees thereof, it shall be estimated, and such estimated amount shall be treated as is above directed for the actual amount, the fact of estimation being stated in the entry. Note. — Corporations will be required to carry as sub-accounts of the account " Fixed Capital, December 31, 1908," the several accounts on their books on that date which are combined to make up the said account, and to furnish information concerning such sub-accounts in their annual reports. The following capital accounts are prescribed for transactions subsequent to December 31, 1908: G110. Land Devoted to Gas Operations. Charge to this account the cost of the accounting corporation's landed capital which is devoted to gas operations as hereinbefore defined. This includes land occupied by gas works 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 pur- chaser in its own behalf, cost of registration of title, cost of examination of title, conveyancer's and notary's fees, purchasing agent's commissions 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 costs of obtaining con- sents 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 buildings or other improvements thereon, which improvements are devoted by the corporation to its gas operations, and the contract of acquisition does not de- termine 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 10 Public Service Commission, Second District Gas Operations ". If such improvements are not devoted to gas 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 Gas Opera- tions ". The entries in this account must be made in such wise as to enable the corporation to show in its annual report to the Public Service Commission the subdivision of the cost of its land devoted to gas operations into the following : Land Occupied by Gas Works. Land Occupied by Outside Holder Stations. Water Rights. Other Land Devoted to Gas Operations. 101. Organization. Charge to this account all fees paid to governments for the privilege of incorporation, and all office and other expenditure incident to organizing the corporation or other enterprise and putting it in readiness to do business. This includes cost of preparing and distributing prospectuses, cost of solicit- ing subscriptions for stock (but not for loans nor for the purchase of bonds or other evidence 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 organizing the enterprise, counsel fees, cost of preparing and issuing certificates of stock, and cost of procuring certificates of necessity from state authorities, and other like costs. Like costs incident to pre'paring and filing certificates of authorization of increase of capital stock, and to the negotiation and issue of stock thereunder, shall be classed as additions. Cost Df preparing and filing certificates of amendment of articles of incorporation shall be classed as a betterment. Cost of preparing and filing papers in con- nection with the extension of the term of incorporation or with reincorporation consequent upon reorganization shall be classed as a renewal. 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. G102. Franchises (Gas). To this account shall be charged " the amount (exclusive of any tax or an- nual charge) actually paid to the State or to a political subdivision thereof as the consideration for the grant of such franchise or right" (section 69 of the Public Service Commissions Law) as is necessary to the conduct of the corporation's gas operations. If any such franchise is acquired by mesne assignment, the charge to this account in respect thereof must not exceed the amount actually paid therefor by the corporation to its as- signor, nor shall it exceed the amount specified in the statute above quoted. Any excess of the amount actually paid by the corporation over the amount specified in the statute shall be charged to the account " Other Intangible Gas Capital ". If any such franchise has a life of not more than one year after the date when it is placed in service, it shall not be charged to this ac- count but to the appropriate accounts in " Operating Expenses," and in " Pre- payments " if extending beyond the fiscal year. Payments made to the State or to some subdivision thereof as a considera- tion for granting an extension for more than one year of the life period of a franchise shall be classed as renewals. Those made as a consideration for franchises or extensions thereof covering additional territory to be operated Accounts for Gas Corporations 11 as a part of an existing system shall be classed as betterments. If the fran- chises cover separate and distinct new enterprises, the payments therefor shall be classed as original. Note. — Annual or more frequent payments in respect of franchises must not be charged to this account but to the appropriate tax cr operating expense account. G103. Patent-rights (Gas). 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 in- ventions and discoveries which are necessary to the economical conduct of the corporation's gas operations. If any such right is extended to cover a further period of time than that covered by the original grant, the cost of such extension shall be classed as a renewal. A patent-right acquired for use in an existing system and necessary to the economical operation thereof shall be classed as an addition. G104. Other Intangible Gas Capital. Charge to this account the cost of all other property coming within the definition of intangible capital and devoted to gas operations. All 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. G121. 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 gas operations and not includible in any of the departmental 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 fix- tures for lighting, signaling, etc.; elevators, etc., and the engines and motors specially provided for operating them; furnaces, boilers, etc., specially pro- vided for producing steam for such engines and for heating; electric gen- erators 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 ma- chinery or apparatus mounted thereon. Note A. — ■ Among such buildings may be mentioned general office buildings, gen- eral shop buildings, general storehouses, general stable buildings, etc. Where general offices, shops, storehouses, stables, etc., are in buildings includible in a departmental account, as e. g., in n retort house, no part of the cost of such building shall be charged to this account. This account is provided for struc- tures of a general or miscellaneous character not assignable to any particular department. 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. 12 Public Service Commission, Second District G122. General Equipment. Charge to tins 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 equipment of general offices, such as desks, chairs, tables, movable safes, filing cases, draft- ing-room equipment, and other like office appliances and equipment; also engineering instruments. b. General Shop Equipment: This includes the cost of all equipment 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 equipment 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 be 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 respon- sible therefor. c. General Store Equipment : This includes the cost of all equipment 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. 6121, " General Structures," and not to this account. d. General Stable Equipment : This includes the cost of all equipment of general stables, including horses, harness, drays, wagons, automobiles and other vehicles, equipment of shoeing shops, harness repair shops, vehicle re- pair shops, etc. 221. Works and Station Structures. Charge to this account the cost of all structures at works devoted to the production of gas, including purification and all other processes performed upon such gas antecedent to its entrance into the station holder; also of all buildings and other structures at outlying holder stations, except the holders and their appurtenances as provided in the following account, " Holders ". Such structures include retort houses, generator houses, purifier houses, engine houses, boiler houses, meter houses, coal sheds, coke sheds, tar houses, oil tanks, tar wells, and other structures for storage of fuel to be consumed or carbonized in the production of gas and the operations auxiliary thereto; structures for residuals and byproducts; appurtenant walks, fences, drives, tramways, trestles, etc., and all fixtures permanently attached to such structures and made a part thereof. Note. — Such piers and other foundations for machinery and apparatus as are designed to be permanent and to outlast the first machinery or apparatus mounted thereon shall also be charged to this account ; hut short lived, temporary, or specially provided foundations and settings for furnaces and boilers, steam engines, gas engines, pumps, generators, benches, condensers, washers, scrubbers, purifiers, etc., shall go with the machinery and apparatus to which they are related. Gas holders are not includible in this account. Accounts foe Gas Cobpobations 13 222. Holders. Charge to this account the cost of all holders at works and outlying sta- tions, including tanks, foundations, holders, frame work, guides, pulleys, etc., and inlet and outlet valves of such holders. Note. — ■ Holder housings shall be charged to account No. 221, " Works and Sta- tion Structures ". G141a. Furnaces, Boilers, and Accessories. Charge to this account the cost of all furnaces, boilers, and boiler apparatus and accessories devoted to the production of steam for use in producing gas and in furnishing motive power in gas works and stations. This includes boilers and valves thereto attached, appurtenant furnaces and grates, and flues leading to smokestacks and chimneys, and the specially provided founda- tions and settings of such boilers and appurtenances; also iron smokestacks. Tt also includes mechanical stokers and other like apparatus for regulating the supply of fuel, etc., feed and hot water heaters and economizers, injectors, filters, feed pumps, blower engines, coal conveyors, ash conveyors, water pipes, steam traps, drains, and separators, and pipes for conducting steam from the boiler to the engine, to condensers, or to the gas generators, exhaust pipes, etc. It does not include steam pipes whose primary purpose is th« heating of buildings. G141b. Steam Engines. Charge to this account the cost of all steam engines devoted to use as prime movers in gas works. This includes the specially provided founda- tions and settings of such engines. The engine, whether reciprocating or rotary (such as steam turbines), shall be considered to include the throttle or inlet valve and the governor; also condensers and air pumps, but not the steam pipe leading from the boiler, nor the exhaust pipe. G143b. Gas Engines. Charge to this account the cost of all gas engines devoted to use a3 prime movers in gas works and stations. This includes the specially provided foundations and settings of such engines. The engine includes the inlet valve and governor, and ignition and starting apparatus, but not the pipe lead- ing from the gas holder, nor the exhaust pipe. G145. Miscellaneous Power Plant Equipment. Charge to this account the cost of all miscellaneous power plant equipment at gas works which is not includible in any of the foregoing accounts. This includes such mechanical apparatus as belts, pulleys, hangers, countershafts, and other apparatus intermediary between the prime mover and the apparatus operated, cranes, hoists, etc., and machine tools and such other tools at power plants as are proper to be capitalized, etc. 223. Benches and Retorts. Charge to this account the cost of all benches and retorts devoted to the production of coal gas. This includes the cost of specially provided foundations and settings and auxiliary piping, including foul and hydraulic mains. G143a. Water Gas Sets and Accessories. Charge to this account the cost of sets and accessories devoted to the pro- duction of water gas, including the cost of specially provided foundations and settings for such sets. This account includes not only generators, carbureters, 14 Public Service Commission, Second District super heaters, seals, and piping connected therewith, etc., but also blast appa- ratus, oil and steam supplying apparatus, oil heaters, etc. It does not include pipes whose primary purpose is the warming of buildings. 224. Purification Apparatus. Charge to this account the cost of all purification apparatus, such as condensers, washers, scrubbers, purifiers, tar extractors, etc., and their ancil- lary apparatus and piping, including the cost of specially provided foundations and settings. 225. Accessory Equipment at Works. Charge to this account the cost of all equipment at works and holder stations which is not includible under any of the foregoing accounts. This includes exhausters, station meters, governors, etc.; apparatus for charging retorts; conveyors for disposing of coke and other products and residuals; tar and ammonia apparatus, pumps, pipes, tanks, etc. 231. Trunk Lines and Mains. Charge to this account the cost of all trunk lines and mains in place. This includes all pipe lines from the yard connections to district holders, and from the works governor to the beginnings of services, including the cost of all trenching, etc., necessary to the placing of the pipe, and the cost of filling trenches and restoring the surface to its former condition or to that re- quired by the municipal authorities at the time the line is installed. 232. Gas Services. Charge to this account the cost of the corporation's property in service pipes and appurtenances in or leading to consumers' premises. This in- cludes the cost of material in place, cost of trenching for placing services, and of filling trenches and restoring surface to proper condition. Note A. — When consumers are required to pay some or all of the cost of services, only that portion of the cost not chargeable to the consumer is chargeable to this account ; in all cases where only a portion of the cost of the service is charge- able to this account the entry in this account shall show the entire cost of the service as well as the amount charged to this account. Note B. — Where services extending only from main to curb (or to lot line) are placed before actually required for the purpose of supplying consumers, the entry of cost must show that fact. Such services will be required to be separately reported in the annual reports of corporations to the Public Service Commission. Note C. — Cost of renewing or modifying services shall not be charged to this account. 233. Gas Meters. Charge to this account the cost of the corporation's property in all meters and appurtenances used in measuring the gas delivered to consumers. Note A. — This account does not include the cost of the corporation's meters at the works ; such cost shall be charged to account No. 225, "Accessory Equipment at Works," or to a sub-account thereunder. Note B. — Cost of setting, removing, or re-setting such meters shall not be charged to this account. Note C. — Upon filing with the Public Service Commission a notice thereof, the accounting corporation may also include in this account the cost of consumers' meters temporarily withdrawn from service. 234. Gas Meter Installation. Charge to this account the labor and materials cost (exclusive of cock and connections) of the first setting of meters for determining the amount of gns delivered to consumers, in case it is the policy of the corporation to capitalize the cost of such selling. Accounts foe Gas Corporations 15 Note A. — Cost of removing such meters and of setting other meters substituted for them shall not be charged to this account but to account No. 634a, " Gas Meter and Installation Work ". (See page 38.) Note B. — This account must not include at any time the cost of installation of a greater number of consumers' meters than are actually in service. 235. Municipal Street Lighting Fixtures (Gas). Charge to this account the cost of the corporation's property in the lamps, posts, and ancillary apparatus and appliances used in lighting streets for a municipal corporation. Such cost includes not only cost of material but also cost of first setting and coupling up. It does not include cost of removal or change of position. Note. — Where the municipality requires for its special benefit the extension of mains and services for street lighting, such extensions may, so long as used solely for street lighting, be charged to this account, provided a full description of the extensions so charged and the amounts charged in respect thereof be filed with the Public Service Commission on or before the date when the entry thereof is made upon the books of the corporation. 236. Gas Engines and Appliances. Charge to this account the cost of the corporation's property in gas engines leased to consumers (including municipal corporations), but not of those held for purposes of sale. Such engines include all appliances for the production of mechanical motion through the consumption of gas. Also charge to this account the cost of the corporation's property in all gas stoves and other heating appliances leased to consumers, but not of those held for pur- poses of sale. This includes stoves, ranges, heaters, hot plates, sadirons, tailors' irons and gooses, and other like devices and appliances consuming gas for the direct production of heat. Note A. — The cost of setting and connecting such engines and heating appliances on the premises of consumers and the cost of re-setting or of removal shall not be charged to this account. Note B. — Upon filing with the Public Service Commission a notice thereof, the ac- counting corporation may also include in this account the cost of such gas engines and appliances temporarily withdrawn from service. 237. Gas Tools and Implements. Charge to this account the cost of all tools and implements coming within the scope of the definition of fixed capital (see paragraph 4, page 5, ante) and not covered by any of the foregoing equipment accounts. 238. Gas Laboratory Equipment. Charge to this account the cost of all physical and chemical apparatus used in testing and other technological work, and of all equipment in laboratories used for technological work, such as calorimetry, photometry, chemical analysis, and the like; also all equipment for testing building and other materials used in the engineering operations of the company. Note. — This account does not include the cost of any chemicals or other supplies, such being chargeable to the appropriate suo-account in the account " Materials and Supplies"; as consumed they shall be charged thence to the appropriate expense accounts. 239. Other Tangible Gas Capital. , Charge to this account the cost of all miscellaneous tangible gas capital not elsewhere provided for. G281. Engineering and Superintendence. Charge to this account all expenditures for services of engineers, drafts- men, and superintendents employed on preliminary and construction work, 1G Public Service Commission, Second District and all expenses incident to the work, when such disbursements can not be assigned to specific construction. Note. — When employees enumerated ahove are engaged in work not chargeable to construction, their pay and expenses shall be charged to the specific work on which engaged. G282. Law Expenditures During Construction. Charge to this account general expenditures of the following nature in- curred in connection with the construction of a gas plant: namely, the pay and expenses of all counsel, solicitors, and attorneys, their clerks and attendants, and expenses of their offices; printing briefs, legal forms, testi- mony, reports, etc.; payments to arbitrators for the settlement of disputed questions; costs of suit and payments of special fees, notarial fees, and wit- ness fees; and expenses connected with taking depositions; also all legal and court expenses. When any of the expenditures above enumerated can be charged directly to the account for which incurred, they shall be so charged and not to this account. Expenditures in connection with the acquisition of the right of way or other land shall be charged to account No. G110, "Land Devoted to Gas Operations ". Law expenditures in connection with the organization of the corporation shall be charged to account No. 101, "Organization". G283. Injuries During Construction. Charge to this account all expenditures incident to injuries to persons when caused directly in connection with construction of gas plant and equipment; proportion of salaries and expenses of physicians and surgeons; nursing and hospital attendance, medical and surgical supplies, artificial limbs, railroad and carriage fares for conveying injured persons and at- tendants; funeral expenses (including payments to undertakers) ; proportion of pay and expenses of claim adjusters and their clerks, and pay and ex- penses of employees and others called in consultation in relation to the ad- justment of claims coming under this head; also witness fees and amount of final judgments. G284. Taxes During Construction. Charge to this account all taxes and assessments levied and paid on prop- erty belonging to the corporation while under construction and before the plant is opened for commercial 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. G285. Miscellaneous Construction Expenditures. Charge to this account the salaries and expenses of executive and general officers of a gas plant under construction; 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 all construction and equipment items of a special and incidental nature which can not properly be charged to any other account in this classification. 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, funded debt, or other securities, and commercial paper. Accounts for Gas Corporations 17 G28G. 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. To this account shall also be credited discounts realized through prompt payment of bills for materials and supplies used in construction unless such discounts are credited to the particular bills. OHO. Land in Other Departments. Charge to this account the cost of the corporation's interests in land (exclusive of improvements thereon) devoted to operations other than electric operations, gas operations, railroad operations, and street railroad operations. 1 Such cost includes, when assumed or when 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 commissions or fees, or proportion of purchasing agent's salary, taxes accrued to date of transfer of title, and all liens upon the title acquired. If at the time of acquisition of such interest in lands it extends to buildings or other improvements thereon, which im- provements are devoted by the corporation to operations other than the four classes above mentioned, and the contract of acquisition does not determine the price of such improvements, they shall be appraised at their fair cash value, and such appraised value shall be charged to the appropriate accounts and excluded from the account " Land in Other Departments ". If such im- provements are held as investments, the cost (or appraised value at time of acquisition of title if the cost to the corporation is not determined in the contract of acquisition) shall be charged to the appropriate investment ac- count. If the improvements are removed or wrecked, the salvage (less the cost of removal or wreckage) shall be excluded from the account "Land in Other Departments ". O102. Franchises in Other Departments. 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 right " as is necessary to the conduct of the corporation's operations other than electric, gas, rail- road, and street railroad. O103. Patent-rights in Other Departments. 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 in- ventions and discoveries which are necessary to the economical conduct of the corporation's operations other than electric, gas, railroad, and street rail- road. 1 Note. — Electric Capital,, Railroad Capital, and Street Railroad Capital. — For the accounts to which shall be charged the cost of capital devoted to electric operations, see the Uniform System of Accounts for Electrical Corporations ; for steam railroad operations, see the Uniform System of Accounts for Expenditures for Road and Equipment, etc., as established for Steam Railroad Corporations by the Public Service Commission ; and for electric railroad and street railroad opera- tions, see the Uniform System of Accounts for Street Railroad Corporations. 18 Public Service Commission, Second District O104. Other Intangible Capital in Other Departments. Charge to this account the cost of all property of the corporation coming within the definition of intangible capital devoted to its operations other than electric, gas, railroad, and street railroad, and not includible under any of the foregoing accounts. O120. Tangible Capital in Other Departments. Charge to this account the cost of all property of the corporation coming within the definition of tangible capital devoted to its operations other than electric, gas, railroad, and street railroad. 25. Floating Capital divided into two groups. — Floating capital is divided into two great groups, of which the first is herein called Materials and Sup- plies, and the second, Current Assets. 26. Definitions of Floating Capital accounts. — In the following definitions the letters and figures prefixed to the titles of the accounts are no part of the titles and are inserted merely for convenience of reference: G10. Materials and Supplies. Charge to this account the cost (including transportation) of all materials and supplies acquired by the corporation, 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. G286, " Interest During Construction," or to account No. GU852, " Miscellaneous Adjustments — Balance," according as such materials and supplies are intended for construction or for operation. The scrap value of things retired from service shall be charged to an appro- priate sub-account in this account while such things remain the property of the corporation. If such scrap value is not known and can not readily be determined it shall be estimated, and errors in such estimates when deter- mined shall be adjusted through the accounts involved if during the year in which the estimates were made ; if later, then through 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 the operating expense ac- count No. GC852, " Miscellaneous Adjustments — Balance," in case they can not be assigned to specific accounts. Shortages may, however, be charged directly to " Corporate Surplus or Deficit ". Where such materials and sup- plies have been used in construction, a suitable proportion of such shortages or overages may be debited or credited to account No. G285, "Miscellaneous Construction Expenditures ". 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. 1. Cash. Charge to this account all money coming into the possession of the corpora tion and in which the corporation has the beneficial interest. This includes Accounts for Gas Corporations 19 coin of the United States, United States treasury notes, gold and silver cer- tificates and greenbacks, and bank bills payable to bearer. Also charge to it all bank credits, checks and drafts receivable, subject to satisfaction or transfer upon demand (whether payable to bearer or to order). Credit this account with all cash disbursements of the corporation. 2. Bills Receivable. Charge to this account the cost of all bills receivable (except as below provided) which are the property of the corporation and upon which solvent concerns are liable or which are sufficiently secured to be considered good. This account includes demand notes, drafts, etc., issued by others than banks, and time notes, drafts, etc., by whomever issued. This account does not in- clude investments (for which see below) ; nor does it include interest coupons. 3. Accounts Receivable. Charge to this account all amounts owing to the corporation upon ac- counts with solvent concerns (other than banks) ; also the cost of all accounts and claims upon which responsibility is acknowledged by solvent concerns or which are sufficiently secured to be considered good, and of all judgments against solvent concerns where the judgment is not appealable or suspended through appeal. This account does not include negotiables. 4. Interest and Dividends Receivable. Whenever the income account is stated the appropriate sub-account therein shall be credited and this account shall be charged with all accrued but not yet collected interest upon all commercial paper and accounts considered collectible held by or for the benefit of the corporation: also all dividends declared or guaranteed by solvent concerns but not yet collected, the right to which is in the corporation. 5. Other Current Assets. Charge to this account the cost of all current assets of the corporation which are not includible under any of the last four foregoing accounts. By current assets are meant only those things which are readily convertible into money and which are held with the intent of being presently converted into money and not as investments. 27. Investments defined. — By Investments, as here used, are meant all prop- erties acquired not for use in present operations, but as a means of obtaining or exercising control over other corporations, or for income to be derived from them, or for a rise in value, or for devotion to future operations at a time when it seems probable that they can not be so advantageously acquired as at the time of actual acquisition. By bound investments are meant those held subject to a lien of some character; by free investments are meant those held free of all liens. 300. Investments. The cost of the corporation's title to any property held as an investment shall be charged to an account entitled " Investments ". Note. — In the annual reports to be made to the Public Service Commission by the corporations and other persons engaged in gas operations, investments, whether bound or free, will be required to be classified with at least the following detail : Bound investments will be required to be divided into the three classes : " Mort- gaged or Pledged Investments," " Contractual Fund Investments," and " Other Bound 20 Public Service Commission, 'Second District Investments ". Each of these three classes, and the class " Free Investments," will be required to be subdivided into the following: Funded Debt of Controlling Corporations, Funded Debt of Affiliated Corporations, Funded Debt of Controlled Corporations, Stocks of Controlling Corporations, Stocks of Affiliated Corporations, stocks of Controlled Corporations, Advances to Controlled Corporations, Funded Debt of Other Corporations, Stocks of Otber Corporations, Land, Improvements on land, and Other Investments. 28. Special Deposits defined. — By Special Deposits, as here used, are meant amounts of money and bank credits in the hands of fiscal or other agents of the corporation for the payment of coupons, dividends, or other special purposes. Credits at banks subject to check of the corporation or its agents for general purposes, deposits at banks whether withdrawable at pleasure or after a specified time, amounts of money in safety deposit vaults, etc., so long as they are available for general purposes of the corporation, shall be excluded herefrom. 311. Coupon Special Deposits. Charge to this account all moneys and bank credits specially deposited in the hands of fiscal agents or other agents of the corporation for the payment of interest coupons when presented. Such coupons when paid from such deposits shall be credited to this account and charged to the appropriate matured interest account. Payments to trustees (or other agents) of the holders of bonds or other securities of the interest accrued thereon which op- erate under the terms of the securities (or of mortgages supporting such securities) as a release of the paying corporation from further liability for such interest shall not be charged to this account, but to the appropriate " Interest Accrued " account. 312. Dividend Special Deposits. Charge to this account all moneys and bank credits specially deposited in the hands of fiscal agents or other agents of the corporation for the payment of dividends upon the corporation's stocks. Such dividends when paid from such deposits shall be credited to this account and charged to the appropriate dividend account. 313. Other Special Deposits. Charge to this account all moneys and bank credits deposited in the hands of fiscal agents or other agents of the corporation for other special purposes than the payment of interest coupons and dividends. Charges to this account shall specify the purpose for which the deposit is made. When such purposes are satisfied this account shall be credited with the amount specially deposited to provide such satisfaction. 29. Prepayments. — When payments for taxes, insurance, rents, and the like are made in advance of the actual accrual thereof, the amount of the advance payment shall be charged to the appropriate account in this group. As such taxes, etc., accrue, the appropriate prepayment account shall be credited and the appropriate expense or other income account shall be charged. Note. — By the accrual of taxes, insurance, rents, etc., is meant tbeir accumula- tion when considered as spread uniformly over the period to which they apply. Thus, if the rent fixed by contract of lease for a certain property is $000 for a calendar year, tbis accrues at tbe rate of $50 each month (unless it is desired to base the accrual on days, when of course the varying lengths of tbe months would require to be considered), regardless of the actual times when the rent matures; $50 should thus (if the rent has been prepaid) be credited each month to the account " Prepaid Rents," and concurrently charged to the appropriate account in the " Income " account. Similarly in the case of other prepayments. Accounts for Gas Corporations 21 321. Prepaid Taxes. When taxes are paid in advance of their accrual, the amount prepaid shall he charged to this account. As the tuxes thus prepaid accrue, they shall be credited at monthly intervals to this account and charged to the appropriate taxes account. This account must not include any so called taxes, like water taxes, drainage taxes, fire taxes, etc., which are payments for special benefits received. Such payments for special benefits, where finally chargeable to operating expenses, must, when prepaid, be charged to the account " Other Prepayments ". 322. Prepaid Insurance. When premiums on insurance policies are paid in advance of their accrual, the amount prepaid (whether paid in cash or by the issue of notes or other negotiable paper) 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 account. 323. Prepaid Rents. When rents are paid in advance of the enjoyment of the term, the amount prepaid (whether paid in casli or by the issue of notes or other negotiable paper) shall be charged to this account. As the term is consumed, this account shall be credited at monthly intervals and the appropriate rent account in the income account shall be charged. 324. Other Prepayments. When prepayments are made for any other thing than taxes, insurance, and rents, above provided for, such prepayments shall be charged to this account; and as the purpose of the prepayment is satisfied, proportionate amounts shall be credited monthly to this account and charged to the appropriate expense or income account. 30. Suspense. — When any expenditure is made, the appropriate disposition of which is not yet determinable, or when any loss occurs which under the rules of the Public Service Commission may be spread over a period of time, or when any debit made for any other reason may be amortized through charges made to expense or other income accounts at intervals over a period of time, such expenditure, loss, or other debit shall, except as herein other- wise directed, be charged to an appropriate account in this group of accounts. Note. — By " amortization " of any charge or credit is meant its gradual ex- tinction. The word is broader than the word " depreciation," since the latter U restricted ordinarily to tangible property. The word " depreciation " also imports more of the idea of fluctuating value and is complicated somewhat with the question of cost of replacement at market prices. Because it is considered unnecessary in connection with the gradual consumption or expiration of life of capital to con- sider the question of cost of replacement until the replacement is actually made, at which time the cost of replacement is duly charged to the appropriate account, and because provision is necessary for the gradual extinction of certain charges (such as those for some kinds of capital, those for extraordinary casualties, for , discount on debt, etc.) to which the term " depreciation " does not well apply, it is considered advisable to use the term " amortization " in connection with the extinction of such charges, and of certain corresponding credits, such as premiums on debt outstanding. 331. Unamortized Debt Discount and Expense. When funded debt securities and other evidences of indebtedness are dis- posed of for a consideration whose cash value is less than the sum of the par 22 Public Service Commission, Second District value of the securities or other evidences of indebtedness and the interest thereon accrued at the time the transfer takes place, the excess of such sum of the par value and accrued 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 as fees for drafting mortgages and trust deeds, fees and taxes for record- ing mortgages and trust deeds, cost of engraving and printing bonds, certifi- cates of indebtedness, and other commercial paper having a life of more than one year, fees paid trustees provided for in mortgages" 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 based upon the life of the security to maturity shall be credited to this account and charged to ac- count No. 928, "Amortization of Debt Discount and Expense," in " Income " account. 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 the account " Other Deductions from Surplus ". 332. Other Suspense. To this account shall be made all debits not elsewhere provided for and the proper final disposition of which is uncertain. This will include all such matters as expense of preliminary surveys, plans, investigations, etc., made for 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; should it be abandoned, such amounts shall be charged to " Corporate Surplus or Deficit ". When the proper disposition of any matter charged to this account is deter- mined, it shall be credited to this account and charged to the appropriate account. 31. Securities Actually Issued and Later Re-acquired. — For the case of securities actually issued by the corporation and later re-acquired by it, the following account is provided: 340. Re-acquired Securities. When securities, whether funded debt or stocks, have been actually issued to bona fide holders for value (or after such issue by another corporation have been assumed by the accounting corporation), and after such issue (or assumption) have been acquired by the corporation under circumstances which require that they shall not be treated as paid or retired, they shall be charged at face values to this account. 32. Debt defined. — The word debt, as here used, covers all absolute obliga- tions to pay money at a definite time or times, or at a time or times which are capable of being made definite by demand or other act of the creditor. It does not cover contingent obligations, such as obligations to pay rent for future enjoyment of the term, liabilities of indorsers upon paper not yet defaulted, etc. Debt is divided into Funded Debt and Unfunded Debt. 33. Funded Debt defined. — Funded Debt comprises all debt which, by the terms of its creation does not mature until more than one year after date of creation. Accounts for Gas Corporations 23 34. Unfunded Debt defined. — Unfunded Debt comprises all debt which by the terms of its creation matures one year or less after the date of creation or after demand. 35. Funded Debt accounts. — Funded debt shall be divided in the accounts into classes, such classes being determined by the four characteristics: (1) mortgage or other lien or security therefor, (2) rate of interest, (3) interest dates, and (4) date of maturity. A separate sub-account shall be raised for each such class of funded debt, and no two amounts of debt not agreeing in respect of all four of the characteristics above named shall be included in the same sub-account. The title of each sub-account of funded debt shall express the four characteristics above stated, that is to say: mortgage or other lien or security, rate of interest, dates of maturity of interest, and date of maturity of principal; as e. g., "First Mortgage 5% QF 10, Aug. 10, 1928," which means funded debt, secured by the company's first mortgage, bearing interest at the rate of 5 per cent, per annum, interest maturing quarterly on February 10th, May 10th ; August 10th, and November 10th of each year, principal maturing August 10, 1928. Where any portion of the funded debt rests only on the general credit of tlif corporation and is not specially secured or supported by lien of any character, it shall for the purposes of these accounts be known as a " deben- ture ". " Debentures " thus include promissory notes unsecured by mortgage or other lien, also those securities commonly known as " plain bonds ". To the appropriate sub-account in " Funded Debt " shall be credited when issued the par value of the amount of evidences of funded indebtedness issued. The entry shall show not only the amount issued but the purpose for which issued, and shall make intelligible reference to the book, page, and account whereon are shown any discounts or premiums realized on the amount issued. If the consideration received for the issue is anything else than money, the entry shall show further the principal to whom issued, and shall describe with sufficient particularity to identify it the_ actual consideration received for the issue. If the issue in any case is to an agent of an undisclosed prin- cipal, the name and business address of such agent and the fact of his agency shall be shown in the entry. 36. Unfunded Debt accounts. — The accounts for unfunded debt are defined as follows: 351. Taxes Accrued. Credit to this account at the close of each month the taxes accrued during the month, and make corresponding charges to the appropriate " Taxes " account. Credits to the account " Taxes Accrued " will necessarily be based upon estimate until the amount of tax levied for the tax period is known; such estimates shall be based upon the best data available, and as soon as the amount of tax for the period is known the account involved shall be adjusted to conform. When any tax is paid it shall be charged to this account and credited to " Cash " or other suitable account. 352. Receiver's Certificates. When any receiver acting under the orders of a competent court is in pos- session of the property of the corporation and under the orders of such court issues certificates of indebtedness chargeable 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. 21 Public Service Commission, Second District 353. Judgments Unpaid. When any judgment of indebtedness is rendered by a court of competent jurisdiction against the corporation, or any fine or penalty requiring the payment of money is assessed by such a court against the corporation, and no appeal accompanied by stay of execution has been taken therefrom within the time allowed by law for such appeal, the amount of such judgment shall be credited to this account, and the entry shall designate the action or suit as a consequence of which such judgment is pronounced or such fine or penalty assessed. The designation of the action or suit shall show the court, the term thereof, the parties, and the character of the action or suit. Interest accruing upon any such judgment shall be credited monthly to this account. Note. — In case of appeal and affirmance in whole or in part from which judg- ment of affirmance a further appeal lies, the same rule shall apply as upon entry of original judgment. 354. Interest Accrued. Credit to this account at the close of each month the interest accrued during the month upon indebtedness of the corporation. When such interest is paid it shall be charged to this account and credited to " Cash " or other suitable account. The account " Interest Accrued " does not include interest on judgments, nor that upon receiver's certificates. The interest accruing on any judgment against the corporation or upon any receiver's certificate shall be credited to the account to which such judgment or receiver's certificate stands credited. Note. — When coupon interest matures it should be transferred from the sub- account " Unmatured Coupon Interest Accrued " to the sub-account " Coupon In- terest Matured ". When such interest is paid out of coupon special deposits the sub-account " Coupon Interest Matured " should be charged and the account "Coupon Special Deposits" credited. 355. Dividends Declared. When any dividend is declared it shall be credited to this account and here remain until it is paid, when it shall be charged to this account and credited to " Cash " or other suitable account. 356. Bills Payable. When any note, draft, or other bill payable which matures not later than one year after date of issue (or of demand), or after assumption by the corporation of primary liability thereon, is issued or assumed, 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. G357a. Consumers' Deposits — Gas. Credit to this account, as such deposits are made, all cash deposited with the corporation by consumers as security for the payment of gas bills. De- posits refunded shall be charged to this account and credited to " Cash ". Deposits applicable to uncollectible or worthless gas bills shall, at the close of the fiscal year (or earlier, at the option of the accounting corporation), be credited to the account of the consumer involved and debited to this account. 357b. Other Accounts Payable. Credit to this account when incurred all liabilities of the corporation upon open accounts, except those provided for in the foregoing account " Con- sumers' Deposits ". Accounts for Gas Corporations 25 358. Other Unfunded Debt. Credit to this account at face value all unfunded debt upon which the corporation is liable and which is not elsewhere provided for. 37. Reserves. — Reserves shall te classified as Permanent and Temporary. 38. Permanent Reserves denned. — By Permanent Reserves are meant those that must be maintained intact during the life of the corporation. Permanent reserves shall be classified into the two classes: Premiums on Stocks and Other Permanent Reserves. 371. Premiums on Stocks. Premiums on stocks shall be sub-classified with respect to the several classes of stocks, for definitions of which see accounts under the head " Stocks ". A sub-account shall be kept for each particular class of stocks, and such sub-accounts shall be severally entitled: Premiums on Debenture Stocks, Premiums on First Preferred Stocks, Premiums on Second Preferred Stocks, etc., and Premiums on Common Stocks. When a premium is realized upon an issue of any particular class of stock, such premium shall be credited to the sub-account above provided for such class of stock, and such credit shall remain in such account so long as such stock remains outstanding. By the premium realized (as the words are above used) is meant the excess of the actual money value (at the time of issue of the stock) of the consideration received for such issue over the par value of the amount of stock issued. If the stock is issued by the corporation to its treasurer or other agent, the excess of the actual money value of the consideration obtained by such agent in exchange for such stock over the par value thereof shall be considered the premium realized. 372. Other Permanent Reserves. Credit to this account all reserves not above provided for created to remain intact until the dissolution of the corporation. A separate sub-account shall he created for each particular purpose for which a reserve is raised, and the purpose of the reserve shall be designated in the title of the account thereof and shall be expressed in full in the first entry in such account. 39. Temporary Reserves defined. — By Temporary Reserves are meant those that are not intended to remain intact during the life of the corporation. Temporary Reserves shall be classified as Contractual Reserves and Non-con tractual Reserves. 40. Contractual Reserves defined. — Contractual Reserves are reserves neces- sitated by contracts of the corporation, as e. g., reserves to cover sinking funds provided for in mortgages, etc. A separate sub-account shall be raised for each particular contractual reserve, and to such account shall be credited all appropriations and accumulations made in accordance with the contract provisions under which such reserve is created. The purpose of the reserve shall be designated in the title of the account thereof and shall be expressed in full in the first entry in such account. 41. Non-contractual Reserves defined. — Non-contractual Reserves are such temporary reserves as are raised without being required under any contract. Noncontractual reserves are divided into Required and Optional. 26. Public Service Commission, Second District 42. Required Reserve accounts.— Required reserves are provided for in the following accounts: 374. Accrued Amortization of Capital. Credit to this account such amounts as are charged from time to time to "Operating Expenses," or other accounts to cover depreciation of plant and equipment, and other amortization of capital. When any capital is retired from service, the original money cost thereof (estimated if not known, and where estimated, that fact and the facts upon which the estimate is based shall be stated in the entry), less salvage, shall (except as provided in ac- count No. G100, "Fixed Capital, December 31, 1908,") be charged to this account. The amount originally entered or contained in the charges to any capital account in respect of such capital so going out of service shall be credited to such capital account, and any necessary adjusting entry made to the appropriate sub-account under the account " Corporate Surplus or Deficit ". 375. Unamortized Premium on Debt. When funded debt securities or other evidences of indebtedness are dis- posed of for a consideration whose cash value is greater than the sum of the par value of such securities or other evidences of indebtedness and the in- terest 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 evidences of indebtedness and the accrued interest shall be credited to this account. At monthly intervals thereafter a propor- tion of such premium based upon the life of the security or other evidence of indebtedness to maturity shall be charged to this account and credited to "Amortization of Premium on Debt" in "Income" account; or at the option of the corporation the charge to this account may be delayed to a time not later than the date of maturity of the debt, in which case the proportion applicable to the period covered by the then current income account shall be credited to the account "Amortization of Premium on Debt," and the re- mainder of the credit shall be to the account " Other Additions to Surplus ". 376. Other Required Reserves. Credit to this account all required reserves not elsewhere provided for. The first entry of a credit to this account with respect to any particular reserve shall show the purpose of the reserve, and every subsequent entry with respect to that reserve shall designate the reserve to which it relates. 43. Optional Reserve accounts. — Optional Reserves are those the creation of which is solely within the discretion of the corporation. For such reserves the following two accounts are provided: 381. Casualties and Insurance Reserve. When any admitted liability arises because of loss or damage to the prop- erty 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 -insur- ance) be charged to the appropriate operating expense or other accounts and credited to this account, against which (in such case) the actual cost of satis- faction 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, Accounts foe Gas Corporations 27 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 corpo- ration, the indemnifiable portion of the loss shall be charged to the insurer and credited to " Casualties and Insurance Reserve ". Also credit to this account the amounts charged to the operating expense account " Insurance " to cover self-carried risks. 382. Other Optional Reserves. A sub-account shall be raised for each particular reserve, and its title shall designate the purpose of such reserve and the first entry therein shall express in full such purpose. 44. Stocks defined. — By Stocks of a corporation, as the term is here used, are meant those securities which represent permanent interests in the corpo- ration or interests which, if terminable, are so only at the option of the cor- poration. 45. Stocks classified. — Stocks are classsified as — Debenture Stocks, First Preferred Stocks, Second Preferred Stocks, etc., and Common Stocks. 46. Debenture Stocks defined. — Debenture Stocks are those issued under a contract to pay absolutely thereon at specified intervals a specified return. 47. First Preferred Stocks defined. — First Preferred Stocks are those which have the first claim upon such dividends as may be distributed. They may be cumulative or noncumulative, participating or nonparticipating. If cumu- lative, the amount by which the dividend at any dividend period fails to reach the stipulated rate is carried forward to continue as a claim upon dividends until satisfied; if noncumulative, such amount lapses. If a first preferred stock is participating, it is not limited to the stipulated rate in the amount of dividends which it may receive, but is entitled to participate, in accordance with the terms of the contract under which it is issued, in further dividends; if nonparticipating, it is limited to the stipulated rate. 48. Second Preferred Stocks defined. — Second Preferred Stocks are those whose claims in the distribution of dividends are next after those of first preferred stocks. These stocks may also be cumulative or noncumulative, par- ticipating or nonparticipating. 49. Common Stocks defined. — Common Stocks are those whose claims in the distribution of dividends are subordinate to the claims of all other stocks. 50. Votirg Powers. — Stocks differ also in regard to the voting powers inci- dent to ownership of them. 51. Retirement of Stocks. — Stocks are sometimes issued under contracts wherein the issuing corporation reserves to itself the right to retire them at its option, either absolute or subject to conditions expressed in the contracts whereunder the stocks are issued. 52. Separate account required for each class of stocks. — In the accounts of stocks outstanding, a separate account shall be raised for each class of stock issued, and no two stocks shall be considered of I he same class unless they 28 Public Service Commission, Second Disteict are equal in their interest or dividend rights, their voting rights, and the conditions under which they may be retired. The characteristics of any class of stocks in these three regards shall be designated in the title of the account raised to cover such stocks, and shall be clearly expressed in the' first entry in such account. To the account for any class of stocks shall be credited when issued the par value of the amount of stock of that class issued. If such issue is for money, that fact shall be stated; and if for any other con- sideration than money, the person to whom issued shall be designated, and the consideration for which issued shall be described with sufficient par- ticularity to identify it; if such issue is to the treasurer, or other agent of the corporation, to be by him disposed of for the benefit of the corporation, that fact and the name of such agent shall be shown; and such agent shall in his account of the disposition thereof show the like details concerning the consideration realized thereon, which account when accepted by the corpo- ration shall be preserved as a corporate record. If the fair cash value of the consideration realized upon the issue of any amount of stock is greater than the par value of such stock, the excess shall be credited to the account " Premiums on Stocks," and corresponding reference thereto shall be con- tained in the entry relating to such stock in the stock account. SCHEDULE B. INCOME ACCOUXT. i. Income and Indicant accounts compared. — A comparison of the balances in the foregoing accounts (Schedule A) at any particular moment will, if the accounts have been properly kept, show the then existing condition of a cor- poration's affairs so far as such condition can be shown through the accounts. The group of accounts just defined is sometimes called the Balance Sheet or Indicant accounts. Their balances indicate the condition of the corporation at any particular time. These accounts with their subsidiary accounts are all that are necessary prior to the time when the corporation becomes what may be called a " going concern ". When a corporation begins operations it requires an additional group of accounts in which to classify in convenient form the accounting history of the various changes it undergoes. Such group of accounts brings together or accumulates the account of the various incidents of the corporation's his- tory. This group of accounts may be called the Income account. They are made up usually on a yearly basis and are closed into one grand account called " Corporate Surplus or Deficit," which ties together this group of accounts and the preceding group. 2. Divisions of Income account. — The principal divisions of this group of accounts are the Revenue accounts, the Revenue Deduction accounts, the In- come Deduction accounts, and the Appropriation accounts. 3. Revenues denned. — By Revenues, as the word is used herein, are meant all amounts of money which the corporation receives or becomes lawfully en- titled to recover for services rendered, for products sold, as gross profits on merchandise sold, or as a return upon its property (or interests in property). Revenues are classified as Operating Revenues and Is on-operating Revenues. 4. Operating Revenues denned. — 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. 5. Non-operating Revenues defined. — 'Son-operating Revenues are those de- rived 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. 6. Revenue Deductions defined. — Revenue Deductions include Expenses, Taxes, and Uncollectible Bills. 7. Expenses defined. — Expenses are those outgoes (including capital con- sumed) necessary to the production of the commodities sold and the services rendered, and to the collection of the revenues. They are divided into Operat- ing Expenses and Son-operating Expenses. Operating Expenses are those incident to the operating revenues. 1^9] 30 Public Seevice Commission, Second District 8. Taxes defined. — Taxes are those annual or other payments exacted by governments for the purpose of raising funds for public uses. 9. Uncollectible Bills defined. — When a corporation is engaged regularly in rendering to general consumers a service, or in supplying to such con- sumers a commodity (as e. g., electric energy or gas for light, heat, or power), current accounts or claims against such consumers for such service rendered or commodity supplied which are incapable of collection by the exer- cise of reasonable diligence are included under the name Uncollectible Bills. 10. Gross Income, Income Deductions, and Net Corporate Income defined. — Revenues, diminished by expenses, taxes, and uncollectible bills, give an amount called Gross Income, which is applicable to corporate and leased properties. Gross income is subject to several compulsory deductions, mostly contractual, like rent, interest, etc., and the remainder after these are made is called Net Corporate Income, which being subject only to the discretion of the corporation is most conveniently carried directly to the corporate sur- plus. The accounts covering the compulsory deductions from gross income, as above defined, are called the Income Deduction accounts. xi. Appropriation accounts defined. — The accounts covering the yearly changes in the corporate surplus are called the Appropriation accounts, since practically all of the matters covered by them are within the discretion of the corporation, although they also include certain adjustments made because of facts of previous years imperfectly accounted for at the time (whether through error or through lack of information), and certain other minor matters like extraordinary expenses not chargeable as deductions from reve- nues; also such matters as profits on the sale of capital, and profits and losses on the sale of investments. 12. Definitions of Gas Operating Revenue accounts. — Credits to the various revenue accounts shall be made upon the basis of bills rendered or of gross prices. Discounts for prompt payment, corrections of overcharges, overcol- lections theretofore credited and afterward corrected, authorized abatements and allowances, and other corrections and deductions shall be charged to the revenue account to which they relate. In the following definitions of accounts the letters and numbers prefixed to the titles are inserted solely for con- venience of reference and are no part of the titles or of the definitions: 431. Municipal Street Lighting — Gas. 1 Credit to this account all revenues derived from lighting streets for munici- pal corporations by means of gas, or from supplying gas therefor. Note. — In the foregoing account the word " streets " is to be interpreted to include parks, plazas, and all other public places not classified as buildings. 432. Lighting Municipal Buildings — Gas. Credit to this account all revenues derived from lighting municipal build- ings by means of gas, or from gas supplied for such purposes, or for heat or power in municipal buildings where such gas is supplied at lighting rates and is not separately measured. 1 Charges to this and the following revenue accounts must be made in such wise as to permit their classification in the annual report of the corporation to the Public Service Commission. Accounts for Gas Coepoeations 31 433. Municipal Heat and Power — Gas. Credit to this account all revenues derived from municipal corporations for gas supplied at special heat or power rates to such corporations for the production of heat and power. 434. Miscellaneous Gas Revenue — Municipal. Credit to this account all revenues derived from supplying gas to municipal corporations and not provided for in the foregoing accounts; also those from the letting of engines and other gas equipment to such corporations. 435. Prepaid Gas. Credit to this account all revenue derived from the sale of prepaid gas delivered through so-called " prepayment meters ". 436. Commercial Metered Lighting — Gas. Credit to this account all revenues derived from all consumers except municipal corporations for gas measured through ordinary meters and sup- plied for lighting at lighting rates. Note A. — Where gas flowing through any ordinary meter is used by any other consumer than a municipal corporation for lighting and incidentally for heating or power purposes, the revenues derived therefrom shall be credited to this account. Note B. — This account does not include gas sold or supplied to other gas cor- porations for distribution ; for such gas, see account No. 438, " Other Gaa Corpora- tions ' . 437. Commercial Heat and Power — Gas. Credit to this account all revenues derived from all consumers except municipal corporations for gas supplied for heat or power at special heat or power rates. Note. — This account does not include gas sold or supplied to other gas corpora- tions for distribution ; for such gas, see account No. 438, " Other Gas Corporations ". 438. Other Gas Corporations. Credit to this account all revenues derived from gas sold or supplied to other gas corporations to be by them distributed through their own pipes to consumers. If any portion of such gas is incidentally consumed by such cor- porations for their own benefit, whether for light, heat, or power, it shall be included herein, if not separately measured, or if included under the same contract with that which is distributed by them to consumers. 439. Commissions on Others' Gas. Credit to this account all revenue accruing to the corporation for distribut- ing gas of other companies through its pipes and selling the same, and for all other services performed in connection therewith. Note — In case the corporation distributes through its pipes the gas of another company, the corporation shall charge "Cash" or the appropriate sub-account (or accounts) under "Accounts Receivable" with the value of the gas of such other company supplied by the corporation to consumers, and shall enter a corresponding credit to a clearing account "Gas Supplied by (blank) Company and distributed by this Corporation," [or, "by (blank)." naming the corporation keeping the account] which account shall be cleared monthly by charging to such clearing account the amount necessary to balance, and crediting to the account "Commissions on Others' Gas" the corporation's proportion of the total revenue, and to the account of the company supplying such gas to the cor- poration that company's proportion of such total revenue. 440. Rent of Gas Appliances. Credit to this account all revenues derived from the letting of gas engines, heating appliances, lamps, and other gas apparatus and appliances (except 32 Public Seevice Commission, Second Disteict meters) to others than municipal corporations. Where the contract of letting names only a single consideration for both the letting and the maintenance of the appliances so let, the entire revenue shall be included in this account. 441. Gas Merchandise and Jobbing Revenue. Credit to this account all receipts from the sale of gas merchandise and from gas jobbing. Charge to this account the cost to the accounting cor- poration of gas merchandise sold, such cost including transportation charges paid on such goods. Credit also to this account the profit or commission accruing to the cor- poration on all jobbing work performed by it as agent under agency contracts, whereunder it undertakes to do jobbing work for another for a stipulated profit or commission upon its actual expense for labor, materials, and supplies. Note A. — In its annual reports to the Public Service Commission the reporting corporation will be required to analyze the credits and debits to this account. Note B. — This account does not include receipts from the sale of superseded equipment, or of junk or other scrap or salvage. 442. Sale of Residuals and Byproducts. Credit to this account all revenue derived from the sale of residuals and byproducts. This account shall be so kept as to enable the corporation to show in its annual report to the Public Service Commission the amounts of revenue derived from the following sources: Sale of Gas Coke, Sale of Coal-gas Tar, Sale of Water-gas Tar, Sale of Ammoniacal Liquor. Sale of Other Residuals and Byproducts. Note A. — The amount of revenue from the sale of any residual or byproduct shall be determined by the price received at the point of delivery to the purchaser, and any expense incurred by the corporation in effecting delivery shall be charged to the appropriate operating expense account. Note B. — Eesiduals and byproducts consumed by the corporation shall not be credited to the account " Sale of Eesiduals and Byproducts ". 443. Joint Gas Rent Revenue. When any corporation engages in gas operations for the production of some of its product for the benefit of another or others under an arrangement for apportioning the expense upon the basis of the relative amounts of benefit to the several participants in the arrangement, if such arrangement provides for the receipt by the corporation of any profit or return upon its property, such profit or return upon property shall, as it accrues, be credited month by month to this account. Such profit or return must be over and above any provision for wear and tear and depreciation of plant involved in the said production, and the amount thereof must be as provided in the arrangement under which the joint production occurs. 444. Other Miscellaneous Gas Revenue. Credit to this account all revenues derived from others than municipal cor- porations for the supply of gas and from other gas operations not includible in any of the foregoing accounts. Accounts foe Gas Corporations 33 13. Revenue from Outside Operations. — The detailed revenue accounts for operations other than the above mentioned will be provided for elsewhere. 14. Operating Expenses defined. — By the operating expenses of a corpora- tion are meant such expenses as are necessary to the maintenance of the corporate organization, the rendering of services required or authorized by law, the sale of merchandise, the production (including herein capital con- sumed) and disposition of the commodities produced, and to the collection of the revenues therefor. Expenses directly incident to the collection of non- operating revenues and the maintenance of the property from which non- operating revenues are derived are excluded from operating expenses. 15. Definitions of 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 wage-, salaries, and fees paid to persons for their services. Cost of materials and supplies includes all specifically assignable transporta- tion charges incurred in obtaining the delivery of such materials and sup- plies 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 cor- poration desires, it may include a suitable proportion of store expenses (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 expenses of the purchasing 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, in- cludes cost of labor expended and material consumed, less salvage, if any. Note. — It is not required that the transportation element of cost shall be as- signed with a greater degree of accuracy than to the nearest cent per unit of material or supply. Whei*e 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. xfv Definitions of Gas Operating Expense accounts. — In the following defini- tions of accounts the letters and numbers prefixed to the titles are inserted solely for convenience of reference and are no part of the titles or of the definitions : GENERAL ACCOUNTS. I. Production Expenses. II. Transmission and Distribution Expenses. III. Municipal Street Lighting Expenses. IV. Commercial Expenses. V. General and Miscellaneous Expenses. I. PRODUCTION EXPENSES. Note. — In case the accounting corporation operates two or more separate and distinct plants for the production of gas, it will be required to keep (with the detail herein prescribed) separate accounts covering production at the several plants. In case the circumstances of any corporation make it impracticable to allocate the cost of its labor among the accounts below prescribed, it should petition the Public 34 Public Service Commission, Second District Service Commission for permission to consolidate two or more of them. Such application must set out in full the facts which in the judgment of the petitioner make such allocation impracticable. 601. Works Superintendence and Labor. Charge to this account all matters provided for under the following heads: Works Superintendence: This head includes the cost of labor of the engineer in charge of works and his assistants, also day and night foremen and station clerks. Boiler House Labor: This head includes the cost of labor employed in weighing and handling coal, coke, and breeze from place of storage to boilers; labor employed in operating boilers and engines (including such labor as that of shovellers, weighers, boiler firemen and engineers, and oilers) ; and labor employed in pumping oil tar from generators through separators to storage tanks, and from storage tanks to boilers; also such labor as that of pump house men. Retort House Labor: This head includes the cost of labor employed in firing benches, charging and re-charging retorts, patching and scurfing retorts, cleaning pipes and lids, quenching and handling coke used under benches, and handling coal from place of storage to retort house. This includes such labor as that of foremen, firemen, furnaeemen, retort and boiler tenders, patchers, pipemen, lid cleaners, coke quenchers, guymen, riggers, shovellers, and wheelers. Generator House Labok: This head includes the cost of labor employed in weighing and handling coal and coke from place of storage to charging floor, and in operating, firing, clinkering, and cleaning generators. This includes such labor as that of shovellers, weighers, pumpers, generator fire- men, and runners. Purifier House Labor: This head includes the cost of labor employed in changing purifier boxes, revivifying oxide, and removing spent oxide to refuse pile. This includes such labor as that of foremen and laborers. Miscellaneous Labor at Works: This head includes the cost of general labor in and about the works not specifically engaged in the manufacture of gas, such as that of watchmen, janitors, and messengers, laborers employed in cleaning up yards, removing snow, and cleaning out refuse pile. 602. Boiler Fuel. Charge to this account the icost (in storage pile) of fuel used under boilers. This includes cost of fuel used, freight, demurrage charges, and labor and cartage in discharging and transferring fuel from point of shipper's delivery to place of storage, Note. — If boiler fuel is delivered from point of shipper's delivery to boilers by other than boiler house labor, cost of such labor should be added to cost of fuel. 603. Water. Charge to this account the cost of water used for gas production. 604a. Fuel Under Retorts. Charge to this account the cost (in storage pile) of fuel used under retorts. This includes cost of fuel used, freight, demurrage charges, and labor and cartage employed in discharging and transferring fuel from point of shipper's delivery to storage pile. Note. — If fuel is delivered from storage to retort house by other than retort house labor, cost of such labor should be added to cost of fuel. Accounts foe Gas Corporations 35 604b. Coal Carbonized. Charge to this account the cost (in storage pile) of gas coal used in retorts. This includes invoice cost of coal used, freight, demurrage charges, and labor and cartage employed in discharging and transferring coal from point of shipper's delivery to storage pile. Note. — If coal is delivered from storage to retort house by other than retort house labor, cost of such labor should be added to cost of coal. 605. Coal Gas Enricher. Charge to this account the cost (in storage) of enricher materials used in enriching coal gas. This includes cost of enricher used, freight, demurrage charges, and labor and cartage employed in transferring enricher from point of shipper's delivery to storage. 606. Generator Fuel. Charge to this account the cost (in storage pile) of fuel used in generators. This includes invoice cost of fuel used, freight, demurrage charges, and labor and cartage employed in discharging and transferring fuel from point of shipper's delivery to storage pile. Note. — If generator fuel is delivered from storage to generator house by other than generator house labor, cost of such labor should be added to cost of generator fuel. 607. Water Gas Oil. Charge to this account the cost (in storage tanks) of gas oil or naphtha used in making water gas. This includes invoice cosf'of oil used, freight, demurrage charges, and labor and cartage employed in getting oil from point of shipper's delivery to storage tanks. 008. Purification Supplies. Charge to this account the cost of material used in gas purification. This includes the average cost of oxide actually used (the invoice cost and freight, plus shavings, plus labor and cartage necessary to store it, plus the cost of mixing it), and the invoice cost of lime actually used. 609. Miscellaneous Works Expense. Charge to this account the cost of sundry supplies and expenses in con- nection with the works not includible in other accounts. This includes lubri- cating oil, waste and packing, and other small materials of like nature used in gas production; also incidental items, such as telephone, ice, brooms, mops, kerosene, soap, towels, and similar expenses. 610. Repairs of Works axd Station Structures. Charge to this account the cost of all repairs of works and station struc- tures, including permanent piers and other foundations. Such structures include retort houses, generator houses, purifier houses, engine houses, boiler houses, meter houses, coal sheds, coke sheds, tar houses and wells, oil tanks, and other structures for storage of fuel to be consumed or carboni2«d in the production of gas and the operations auxiliary thereto; structures for residuals ♦ and byproducts; appurtenant walks, fences, drives, tramways, trestles, etc., and all fixtures permanently attached to such -structures and made a part thereof; also all buildings, holder houses, and other structures at outlying holder stations, except the holders and their appurtenances. Note. — Repairs of short-lived and specially provided foundations and settings for furnaces and boilers, steam engines, gas engines, pumps, generators, benches, condensers, washers, scrubbers, purifiers, etc., shall not be included herein. Such 36 Public Service Commission, Second District foundations and settings and the apparatus and machinery to which they pertain are not intended to be included under the term fixtures as above used. Nor shall repairs of gas holders be included, in this account. GC508. Repairs of Power Plant Equipment. Charge to this account all matters provided for under the following heads: Repairs of Fobnaces, Boilers, and Accessories: This head includes the cost of repairing all furnaces, boilers, and boiler apparatus and accessories devoted to the production of steam for use in producing gas and in furnishing motive power in gas works and stations. This covers boilers and valves thereto attached, appurtenant furnaces and grates, and flues leading to smoke- stacks and chimneys, and the specially provided foundations and settings of such boilers and appurtenances. It also covers mechanical stokers and other like apparatus for regulating the supply of fuel, etc., feed and hot water heaters and economizers, injectors, filters, feed pumps, blower engines, coal conveyors, ash conveyors, water pipes, steam traps, drains, and separators; and pipes for conducting steam from the boiler to the engine, to condensers, or to the gas producers, exhaust pipes, etc. It does not include steam pipes whose primary purpose is the heating of buildings. Repairs of Steam Engines : This head includes the cost of repairing all steam engines devoted to use as prime movers in gas works, including the specially provided foundations and settings of such engines. The engine, whether reciprocating or rotary (such as steam turbines), includes the throttle or inlet valve and the governor ; also condensers and air pumps, but not the steam pipe leading from the boiler, nor the exhaust pipe. Repairs of Gas Engines: This head includes the cost of repairing all gas engines devoted to use as prime movers in gas works and stations, includ- ing the specially provided foundations and settings of such engines. The engine includes the inlet valve, governor, and ignition and starting apparatus, but not the pipe leading from the gas holder, nor the exhaust pipe. Repairs of Miscellaneous Power Plant Equipment: This head includes the cost of repairing all miscellaneous power plant equipment at gas works which is not includible in any of the foregoing accounts. This includes such mechanical apparatus as belts, pulleys, hangers, countershafts, and other apparatus intermediary between the prime mover and the apparatus operated, cranes, hoists, etc., and machine tools and such other tools at power plants as are proper to be capitalized, etc. Note. — Charges to this account must be made in such manner as to permit their analysis in accordance with the foregoing heads. GCG11. Repairs of Gas Apparatus. Charge to this account all matters provided for under the following heads: Repairs of Benches and Retorts: This head includes the cost of all repairs of benches, including the retorts and their settings, and auxiliary piping, including ascension pipes, and foul and hydraulic mains. Repairs of Water Gas Sets and Accessories: This head includes the cost of repairing all water gas generators and accessories devoted to the pro- duction of gas, the specially provided foundations and settings for such water gas sets, and the flues leading therefrom to smokestacks and chimneys. This covers not only generators, carbureters, superheaters, seals, and piping con- nected therewith, but also blast apparatus, oil and steam supplying apparatus, oil heaters, etc. It does not include pipes whose primary purpose is the warming of buildings. Accounts for Gas Corporations 37 Repairs of Purification Apparatus: This head includes the cost of all repairs of the apparatus for purifying gas, including condensers, washers, scrubhers, purifiers, tar extractors, etc., and their specially provided founda- tions and settings. Repairs of Holders: This head includes the cost of all repairs of gas holders and appurtenances at works and of those at district stations. Note. — Repairs of holder housings shall be charged to account No. 610, " Repairs of Works and Station Structures ". Repairs of Miscellaneous EQUIPMENT: This head includes the cost of repairing all accessory equipment and apparatus used in the production 'and storage of gas not specifically provided for in the foregoing accounts, including repairs of exhausters, station meters, governors, etc. ; apparatus for charging retorts; conveyors for disposing of coke and other products and residuals; tar and ammonia apparatus, pumps, pipes, tanks, etc. Note. — Charges to this account must be made in such manner as to permit their analysis in accordance with the foregoing heads. 615. Repairs of Works Tools. Charge to this account the cost of repairing such tools and implements used in the production and storage of gas as have been capitalized. 616. Gas Storage. Charge to this account the cost of labor and material (except repairs) em- ployed in storing and regulating the flow of gas to distributing mains by holder pressure. This includes labor of firemen, engineers, valvemen, and superintendents when engaged on gas storage; and cost of coal, coke, water, and incidentals. 617. Gas from Other Sources. Charge to this account the cash purchase price of gas bought from other companies for distribution through the system of the accounting corporation; also the corporation's proportion of the cost of production (including main- tenance, but not including any pure rent or return upon the value of property employed) of gas produced by another concern for the use of the corpora- tion under any joint arrangement for the sharing of expense upon the basis of the relative amounts of benefit to the several participants. II. TRANSMISSION AND DISTRIBUTION EXPENSES. 631. Transmission Pumping. Charge to this account the cost of pumping gas through mains to the dis- tribution system, including inspection and regulation of booster governors. Note. — In gas operations, when gas is delivered to the supply system outside the works at substantially works pressure, the pipe system, including mains, feeders, and services (and supply pipes to outlying holders, if any), shall all be classed In the distribution system. When the pressure is raised by means of boosters and the gas is delivered to the pipes at higher than works pressure, and is later reduced in pressure and delivered to the distribution system proper, that portion of the pipe system used for conducting gas at the raised pressure shall be classed as the trans- mission system. C632. Distribution Superintendence, Supplies, and Expenses. Charge to this account all matters provided for under the following heads: Distribution Superintendence: This head includes the cost of all labor employed in superintending the operation of the street department, fitting and repair shops, including the salaries of superintendents, foremen, clerks, timekeepers, messengers, watchmen, and janitors employed in the distribution department. 38 Public Service Commission, Second District Distribution Supplies and Expenses: This head includes the cost of office maintenance and incidental expenses of the street and shop depart- ments, including light, heat, telephone, water, ice, etc. Note. — When the distribution office is combined with the works office or com- mercial office, charges like rent, light, etc., should be divided between them in a fixed ratio, based upon the relative amounts of use. 034. Work ox Meters and Consumers' Premises. Charge and credit to this account in accordance with the following directions: G-as Meter and Installation Work: Under this head charge the cost of labor employed and material used in locking and unlocking meters, building inspection, pumping drip, cleaning service or house pipe with pump; setting, removing, re-setting and changing position of meters; and temporary repairs of leaks in house piping. AYork on CONSUMEES' Premises: Charge to this account under this head the cost of installing gas stoves and other appliances on the preniis s of consumers, and of work done for consumers in maintaining the efficiency of their service, including complaint work and other work done in houses beyond the end of the meter outlet connection. This includes the cost of adjusting or changing location of house pipes, gas burners, fixtures, stoves and appliances, and the cost of new pillars, tips, burners, or devices not chargeable to repair accounts; it does not include such installation expense items as are provided for under the preceding head. Credit to this account under this head the cost element of receipts for job- bing work which the accounting corporation has performed as agent under agency contracts. Note A — Any profit or commission accruing to the corporation on jobbing work per- formed as agent shall be credited to account No. 441 "Gas Merchandise and Jobbing Revenue"; to that account shall also be credited all receipts from gas jobbing not done under agency contracts. Note B. — Credits and debits to this account must be analyzed in annual reports to the Public Service Commission. CC35. Repairs of Gas Mains and Services. Charge to this account all matters provided for under the following heads: Repairs of Gas Mains: This head includes the cost of labor and material employed in repairing mains, including labor of foremen, inspectors, caul Lei-, tappers, pavers, drillers, skilled laborers, general laborers, and similar work- ers on street department payrolls, while engaged in repairing, altering, over- hauling, changing position of or removing street mains; protecting exposed or undermined mains, searching for and repairing leaks in mains, and paving over any of the above work; also material and cartage in connection with the above work. Note. — This account must be so kept as to enable the corporation to show sepa- rately in its annual report to the Public Service Commission the cost of repairing trunk lines and mains used for transmission of gas, and the cost of repairing those used for distribution. In gas operations, when gas is delivered to the supply system outside the works at substantially works pressure, the pipe system, including mains, feeders, and services (and supply pipes to outlying holders, if any), shall all be classed in the distribution system. When the pressure is raised by means of boosters and the gas is delivered to the pipes at higher than works pressure, and is later reduced in pressure and delivered to the distribution system proper, that portion of the pipe system used for conducting gas at the raised pressure shall be classed as the trans- mission system. Accounts fob Gas Corpokatioks 39 Repairs of Gas Services: This head includes the cost of labor and ma- terial employed in repairing services, including the same classes of labor as shown under the preceding head, "Repairs of Gas Mains," while engaged in repairing, altering, removing, relaying, cutting oil', increasing the ^ize of and changing the position of services; searching for and repairing leaks in services: and paving over any of the above work; also material and cartage in connection with the work shown above. 637. Repairs of Gas Meters. Charge to this account the cost of testing and repairing consumers' meters, 638. Repairs of Distribution Tools. Charge to this account the cost of sharpening and repairing such tools and implements as have been charged to capital accounts and are used in the street department and the fitting and repair shops. 639. Repairs of Gas Appliances. Charge to this account the cost of repairs of gas lamps, stoves, engines, and other appliances owned by the corporation and rented to consumers. III. MUNICIPAL STREET LIGHTING EXPENSES. 040. Street Lamp Operation and Repairs. Charge to this account all matters provided for under the following heads: Street Lamp Operating: This head includes the cost of labor employed in cleaning and lighting street lamj.s, and extinguishing street lights; in in- specting and supervising the street lighting district; in reporting on iv- lights and discontinues, and watching the hours of lighting and extinguishing; and the incidental expenses of street lamp operating. Street Lamp Repaibs : This head include- the cost of labor and material consumed in fitting up new lamp p:>sts. re-fitting standpipes, cleaning services, cutting off services, re-caulking columns, removing posts, re-setting posts, re-fitting columns, straightening post-, and all other work of a similar character necessary to maintain the street lighting system to the degree of efficiency required by the city: also re-paving over openings made necessary by such work. IV. COMMERCIAL EXPENSES. G550. Commercial Expenses — Gas. ( 'barge to this account all matters provided for under the following heads: Commercial Administration — Gas: This head includes — a. Commercial Department General Labor: The cost of labor of superin- tendents and assistants, chief clerks, stenographers, general clerks, high bill clerks, switchboard operator-, messengers, janitors, and watchmen employed in the commercial department. b. Commercial Department Accounting: The cost of labor of bookkeepers and clerks employed on consumers' accounts. c. Commercial Department Contracts: The cost of labor of clerks and other employees in the application or contract bureau. d. Commercial Department Collecting: The cost of labor of regular and prepayment collectors. e. Meter Reading: The cost of labor of meter readers. f. Commercial Office Supplies ami Expenses: The cost of supplies and the incidental expenses of the commercial office. 40 Public Service Commission, Second District Promotion Office Expense — Gas: This head includes — g. Promotion Management : The cost of administration of the depart- ment maintained for the promotion or development of gas consumption, including that portion of the salaries and expenses of management and clerks in agency and contract departments assignable to new business. h. Demonstrations: The cost of labor employed and expenses incurred in exhibiting and demonstrating the use of gas appliances for the purpose of obtaining new business. i. Other Promotion Office Expense: The office expenses of the promotion or new business department. Advertising — Gas: This head includes — j. Advertising Salaries and Expenses: The salaries and personal expenses of the advertising manager and clerks. k. Advertising Sundries: The cost of commercial advertising sundries, in- cluding booklets, dodgers, newspaper advertisements, posters, bulletins, and all related items. Note. — This head does not Include the expense of advertising residuals, such heing chargeable to the proper residual expense account. Canvassing and Soliciting — Gas : This head includes all expenses in- curred in soliciting new business, including wages, commissions, and personal expenses of canvassers, cost of preparing estimates, engineering advice on gas installation, etc., and office sundries in connection therewith. Note. — Charges to this account must be made in such manner as to permit their analysis in accordance with the prescribed heads. V. GENERAL AND MISCELLANEOUS EXPENSES. G831. General Administration. Charge to this account all matters provided for under the following heads: Salaries of General Officers: This head includes the salaries of the chairman of the board, president, vice president, treasurer, secretary, comp- troller, general auditor, general manager, assistant general manager, chief engineer, general superintendent, purchasing agent, and all other officers whose jurisdiction extends to the entire system and whose services can not be satisfactorily allocated to the several departments. Salaries of General Office Clerks: This head includes the salaries and wages of general office auditors, bookkeepers, cashiers, paymasters, stenog- raphers, clerks employed in counting cash, and all other clerks employed in the general office. Note. — Cost of labor of clerks in the commercial department shall be charged to account No. G550, " Commercial Expenses — Gas," under the head of " Com- mercial Administration — Gas ". (See page 39.) General Office Supplies and Incidental Expenses: This head includes the cost of office supplies, repairs of office furniture, and renewals of such fur- niture as has not been capitalized; wages of janitors, porters, and messengers; rent of rooms in office buildings and repairs of such rented rooms; traveling and incidental expenses of general officers and other general office employees; and all other miscellaneous expenses of general offices. Office expenses of departmental officers must be charged to the proper departmental accounts. Note A. — Rents charged under this head will be required to be reported sepa- rately. Note B. — This head does not include cost of telegrams or of telephone service. General Law Expenses: This head includes all law expenses except those incurred in the defense and settlement of damage claims. This includes Accounts fck Gas Corporations 41 salaries and expenses of all counsel, solicitors, and attorneys, their clerks and attendants, and expenses of their offices; cost of law books, printing briefs, legal forms, testimony, reports, etc.; fees and retainers for services of attorneys not regular employees: court costs, and payments of. special, notarial, and witness fees not provided for elsewhere: expenses connected witli taking depositions, and all law and court expenses not provided for elsewhere. Note. — The compensation of the general solicitor or counsel or other attorneys engaged partly in the defense or settlement of damage suits and partly in other legal work, should he properly apportioned between this account and account No. G847, " Injuries to Persons and Property," uuder the head of " Law Expenses Connected with Damages ". Miscellaneous General Expenses: This head includes the cost of tele- phone service, telegrams, and other miscellaneous expenses connected with the general management not otherwise provided for. G838. Insurance. Charge to this account premiums paid to insurance companies for fire, fidelity, boiler, casualty, burglar, and all other insurance; also amounts set aside as an insurance reserve. Note. — In their reports to the Public Service Commission corporations will be required to report the charges made to this account for the various kinds of insur- ance, and for self-insurance. G839. Relief Department and Pensions. Charge to this account ail matter- provided for under the following heads: Belief Department Expenses: This head includes all salaries and ex- 'S incurred in connection with conducting a relief department; also con- tributions made to such department. Pensions: This head includes all pensions paid to retired employees, and expenses in connection therewith. G840. Gas Franchise Requirements. Charge to this account the cost of all gas and other materials and supplies furnished to municipal corporations in compliance with franchise require- ments 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 the below provided account Xo. GCs.yJ, " Miscellaneous Adjustments — Balance."' tinder the head of •"Duplicate Gas Charges — Civ' (See page 45.) G841. Residuals Expense. Charge to this account all expense specially incurred in connection with the utilization and sale of residuals and byproducts, such as coke, tar, ammonia, carbon, and other residuals and byproducts, etc. Note. — Charges to this account must be made in such wise as to enable the cor- poration to show separately the following matters : , a. Coke expense, including the cost of all labor and supplies specially consumed and expense specially incurred in the disposal of coke over and above what would be necessitated by such disposition if the coke were not sold. This includes the cost of any special preparation of the coke for sale and the cost of hauling such coke to points of delivery. b. Tar expense, including the cost of all labor and supplies specially consumed and all expense sDecially incurred in the disposition of tar over and above the ex- pense that would be involved if such tar were consumed by the corporation. If both coal gas and water gas are manufactured, and the resulting tars are separately disposed of, the tar expense shall be stated for each. 42 Public Service Commission, Second District c. Ammonia expense, including the cost of all labor and supplies specially con- sumed and all expense specially incurred in the preparation and sale of ammonia or ammoniacal liquor over and above what would be involved if such liquor were con- sumed or wasted by the corporation. d. Other residuals and byproducts expense, including the cost of all labor and supplies specially consumed and expense specially incurred in the preparation and disposition of other residuals and byproducts than those provided for under the foregoing three heads, over and above what would be involved if such residuals and byproducts were consumed by the corporation or wasted. G842. General Amortization — Gas. Charge to this account month by month the amount estimated to be neces- sary to cover such wear and tear and obsolescence and inadequacy' as have accrued during the month in the tangible gas capital of the corporation, such portion of the life of intangible fixed capital as has expired or been consumed during the month, and the' amount estimated to be necessary to provide a reserve to cover the cost of property destroyed by extraordinary casualties; less the amounts charged for that month to the various repair accounts in Gas Operating Expenses. The amount charged (or credited) to this account shall be concurrently credited (or charged) to the reserve ac- count No. 374, "Accrued Amortization of Capital". (See page 26.) Notto A. — Until otherwise ordered, the " amount estimated to be necessary to cover such wear and tear and obsolescence and inadequacy as have accrued dur- ing " any month shall he based on a rule determined by the accounting corporation. Such rule may be derived from a consideration of the said corporation's history and experience during the preceding five years, and the accrual may be on the basis of amount of gas sold. Amortization of intangible capital shall likewise be based on rule. Whatever may be its basis, such rules and a sworn statement of the facts and expert opinions and estimates upon which they are based shall be filed with the Public Service Commission on or before February 1, 1909 ; each amendment of any such rule and a sworn statement of the facts and expert opinions and estimates upon which such amendment is based shall be filed with the Public Service Commission before it is used by the accounting corporation, and shall show the date when it is to be effective. Such rules and statements shall be filed upon sheets 9V 2 inches by 12 inches and shall be entitled " Rule of the (hero naming the accounting corporation) concerning Amortization of Capital ". Note B. - — When any capital is retired from service, the amount (estimated if not known) originally charged to a capital account in respect thereof shall be credited to such capital account, and (except as provided in account No. G100, "Fixed Capital, December 31, 1908,'") the original money cost of such capital, less salvage, if any, shall be charged to the reserve account,. "Accrued Amortization of Capital," any necessary adjusting entry being made in the proper account under " Corporate Surplus or Deficit ". Where capital is substantially continuous and can not be satisfactorily individualized, it shall be kept in efficient operating con- dition through repair, and the renewals and replacements of parts thereof shall be considered repairs. In the case of buildings, towers, bridges, trestles, and other separate structures capable of being readily individualized, charges to this account must be sufficient to provide (in respect of such capital and except as provided in account No. G100, "Fixed Capital, December 31, 1908,") in the account "Accrued Amortization of Capital " by the time such structures go out of service a reserve equal to the original money cost thereof, less salvage, to which account such original cost, less salvage, shall be charged. G847. Injuries TO Persons and Property. Charge to this account all matters provided for under the following heads: ACCIDENTS and Damages: This head includes all expenses (other than law expenses provided for under the succeeding head) on account of persons killed or injured and property damaged in connection with the operation of the plant, as below classified; these classes must be separately shown in annual reports to the Public Service Commission: Accounts fob Gas Corporations 43 a. Claim Department Expense; Salaries and expenses of claim agents, investigators, adjusters, and others engaged in the investigation of accidents and adjustment of claims. b. Medical Expenses: Salaries, fees, and expenses of surgeons and doctors; nursing, hospital attendance, medical and surgical supplies; fees and expenses of coroners and undertakers: and contributions to hospitals. c. Injuries to Employees: Amounts paid in settlement of claims of em- ployees for injuries arising in the course of their employment; also wages paid to disabled employees while off duty. d. Other Personal Injuries and Property Damage: Amounts paid in settle- ment of claims of persons other than employees for personal injuries sustained in connection with the operation of the plant, and amounts paid in settle- ment < f claim-, for damage to property not owned by the accounting corpora- tion. e. Other Accident Expenses. Note. — ■ If it is desired that the charge to operating expenses on account of accidents and damages shall be upon some arbitrary basis, the amount so charged shall be credited to account No. 381. " Casualties and Insurance Reserve," and the actual disbursements above enumerated shall be charged against such reserve account. Law Expenses Connected with Damages: This head includes all law expenses in connection with tin 1 defense or settlement of damage claims, classified as follows; f. Salaries and Expenses of Attorneys: A proper proportion of the salary and licitor or counsel, and salaries, fees, and expenses of attorneys engaged in this work. g. Court Costs and Ea Fees of court stenographers, expenses con- nected with taking depositions, and other court exp i h. Lair Printing: Cost of law books, and eost of printing briefs, court records, and similar papers. Note A. — In their annual reports to the Public Service Commission corporations will be require 1 to classify these matters under the three heads, (/), {g), h abov given. Note B. — The compensation of the general solicitor or counsel and other attor- neys engaged partly in the defense or settlement of damage suits and partly in other legal work should be properly apportioned between this account and account No. G831, " General Administration."' under the head of " General Law Expenses *'. Note C. — If it is desired that the charge to operating expenses on account of law expenses in connection with damages shall be upon some arbitrary basis, the amount so charged shall be credited to account No. 3S1, " Casualties and Insurance Reserve," and the actual disbursements above enumerated shall be charged against such reserve account. G848. General Stationery and Printing. Charge to this account all expenses for stationery and printing, stationery supplies, and postage, except as hereinafter provided: The cost of printing briefs and other legal papers shall be charged to account Xo. (1831. "General Administration" (under the head of "General I Law Expenses •"). or (iS47. ••Injuries to Persons and Property'' (under the head of "Law Expenses Connected with Damages"), in accordance with the purpose of the printing. The cost of printing signs, posters, and other advertising matter shall be charged to account Xo. G550, ■•Commercial E -.*' under the head of ''Advertising — Gas". 44 Public Service Commission, Second District The cost of such mechanical calculators, typewriters, duplicating machines, and other office appliances as are not properly capitalized, shall, if for use in general offices, be charged to account No. G831, " General Administration,'' under the head of "General Office Supplies and Incidental Expenses"; or if foi the use of departmental officers, to the proper departmental accounts. G849. Store and Stable Expenses. Charge to this account all matters provided for under the following heads: Store Expenses: This head includes all salaries and expenses in con- nection with storerooms, including cost of sending materials and supplies from general storerooms to branch storerooms, and the collection of scrap material. Stable Expenses: This head includes the cost of feed, keep, and shoeing of horses, wages of stablemen, hostlers, veterinary expenses, and all other expenses of stabling horses ; also the cost of repairing harness and vehicles. Note. — The cost of horses purchased to replace others should be charged to account No. G122, " General Equipment ". GC852. Miscellaneous Adjustments — Balance. Charge or credit to this account in accordance with the following directions : Inventory Adjustments — Balance: At least once a year an inventory of materials and supplies shall be taken, and the difference (in respect of any particular class of materials and supplies) between the ledger and in- ventory balances debited or credited to this account under this head in case it can not be assigned to a specific account. Discounts on Materials and Supplies — Cr. : Credit to this account under this head all discounts recovered through the prompt payment of bills for materials and supplies consumed in operation, unless such discounts are applied to the particular bills. Note. — Where materials and supplies have been used in construction as well as in operation, a suitable proportion of the shortages or overages disclosed by the inventory may be debited or credited to account No. G283, " Miscellaneous Con- struction Expenditures ". Duplicate Gas Charges — Cr. : Credit to this account under this head all charges made to any accounts in gas operating expenses in respect of any gas or other product of gas operations of the corporation consumed therein. Gas Expenses Transferred — Cr. : Credit to this account under this head the proportion of operating expenses (including depreciation and other amorti- zation as well as repairs) chargeable to other coordinate departments (such as electric or street railroad) within the same corporation, but defrayed in the first instance by the gas department. Note. — Do not credit to this account any allowance in the nature of rent or return upon the cost or value of property. Joint Operating Expense — -Cr.: When any plant or equipment is main- tained or operated by the accounting corporation for the joint benefit of itself and others under an arrangement for apportioning (on the basis of the relative amounts of benefit to the several participants) the operating expenses, the portion of such expenses chargeable to others under the arrangement shall be credited to this account under this head. The portion so credited must not include any allowance for profit or return upon the value of such property. Note A. — The foregoing should be read in connection with the definition of revenue account No. 443, "Joint Gas Rent Revenue". (See page 32.) Accounts for Gas Corporations 45 Note B. — In the case of the production of gas part of which is transferred to another, if the arrangement under which such production occurs does not provide for the apportionment of expenses, the entire amount charged for the portion sup- plied is to be credited to the appropriate revenue account covering the sale of gas. (See account No. 438, "Other Gas Corporations," page 31.) 17. Expenses of Outside Operations. — The detailed expense accounts for other than gas operations will be elsewhere provided for. 1 8. Tax accounts. — An account shall be kept of the taxes chargeable against each particular class of operations, and one for those chargeable against non- operating revenues. Each tax account shall be appropriately entitled (as e. g., " Taxes Assignable to Gas Operations," " Taxes Assignable to Non- operating Revenues," etc.), and shall be so kept as to show separately the following: State Franchise Tax on Capital Stock, State Franchise Tax on Gross Earnings, Special Franchise Tax, Taxes on Land (exclusive of improvements), Taxes on Improvements on Lands, Taxes on Personal Property, Other Ta&es (showing in detail). To each tax account there shall be charged monthly the amount of taxes accruing during the month, and such amount shall be concurrently credited to the account " Taxes Accrued " ( or to the account " Prepaid Taxes," if such tax is prepaid). The amount of taxes accruing during any month shall, where the levy is unknown, be estimated as nearly as may be, and when the levy is ascertained the matter shall be adjusted during the remainder of the tax year. For example, if at the beginning of a tax year the taxes on a particular class of property are estimated to be $600 for the year, the monthly charge on account of such tax should be $50 until the amount of the levy becomes known. If during, say the fifth month, it is found that the levy for the year is $640, there will already have been charged up four months at $50 per month, leaving $440 to be charged during the remainder of the year, or $55 for the fifth month and each month thereafter during the remainder of the year. Such taxes as pertain to two or more classes of operations or to non- operating revenues should be apportioned with regard to such operations and non-operating revenues upon an equitable basis, which basis will be required to be reported in the annual report of the corporation to the Public Service Commission. 19. Uncollectible Bills. — For uncollectible gas bills the following account is provided : G870. Uncollectible Gas Bills. When, after a reasonably diligent effort to collect, any account stated for gas sold has proved impracticable of collection, it shall be charged to this account and credited to the account receivable in which theretofore charged. 20. Definitions of Non-operating Revenue accounts. — In the following defini- tions of accounts the letters and numbers prefixed to the titles are inserted solely for convenience of reference and are no part of the titles or of the definitions : 46 Public Service Commission, Second District GOOlb. Rent Accrued from Lease of Gas Plant. Credit to this account monthly as they accrue all revenues flowing to the corporation from its interests in gas plant or equipment held by others under some form of lease whereby it surrenders possession of such property. This account contemplates that the taxes on property so held are payable by the tenant in possession and charged by him to the appropriate tax account. If under the contract of lease such taxes are payable, by the lessor (or its assignee), such taxes shall be charged to this revenue account and not to any of the lessor's tax accounts, nor to any of its expense accounts. G901d. Miscellaneous Eent Revenues. Credit to this account monthly as they accrue all miscellaneous rent reve- nues flowing to the corporation as a return upon leased property other than gas plant and equipment. Such revenues shall be classified as follows: Leasehold Revenues: That is to say, all revenues flowing to the corpora- tion from its interests in property held by others under any lease the entire term of which is greater than one year. This contemplates that the taxes on property so held are payable by the tenant in possession and charged by him to the appropriate tax account. If under the contract of lease such taxes are payable by the lessor (or its assignee), such taxes shall be charged to this revenue account and not to any of the lessor's tax accounts, nor to any of its expense accounts. Other Rent Revenues: That is to say, all revenues flowing to the corpora tion from its interests in property held by others under any lease or contract for a term not to exceed one year from the beginning of the term, or held at will or upon sufferance. This sub-account contemplates that the taxes on prop- erty of this character shall be paid by the landlord and charged to the appro- priate tax account. If under the contract covering the holding for term* of one year or less, or at will, the taxes are to be paid by the tenant, the amount of such taxes shall be credited month by month to this account aa they accrue, and shall correspondingly be charged to the tax account covering taxes on property of this character. Entries in this account must be made in such wise as to show separately the classes above indicated, which will be required to be stated separately in the annual reports to the Public Service Commission. 902. Interest Revenues. Credit to this account monthly as it accrues all — Interest from Bound Investments : That is to say, all interest accruing to the corporation upon such of its interest-bearing bound investments (as here- inbefore defined) as are liabilities of solvent concerns and individuals. Interest from Free Investments: That is to say, all interest accruing to the corporation upon such of its interest-bearing free investments (as herein- before defined) as are liabilities of solvent concerns and individuals. Interest from Other. Sources: That is to say, all interest accruing to the corporation upon its interest-bearing current assets, special deposits, and all other assets not provided for under the two foregoing heads, where such interest is a liability, actual or contingent, of solvent concerns and individuals. Entries in this account must be made in such wise as to show separately the classes above indicated, which will be required to be stated separately in the annual reports to the Public Service Commission. Accounts for Gas Corporations 47 903. Dividend Revenues. Credit to this account at their cash value, and as of the date when col- lectible, all — Dividends on Bound Investments: That is to say, all dividends declared by solvent concerns upon stocks held by the corporation among its bound investments. Dividends on Free Investments: That is to say, all dividends declared by solvent concerns upon stocks held by the corporation among its free invest- ments. Entries in this account must be made in such wise as to show separately the classes above indicated, which will be required to be stated separately in the annual reports to the Public Service Commission. 904. Profits from Operations of Others. Whenever, in accordance with the terms of any contract, the corporation is entitled to participate in the profits resulting from the operations of others, all revenues accruing to the corporation from such source shall be credited to this account. Note. — This account does not include any dividends on stocks. Such dividends should be credited to account No. 903, " Dividend Revenues ". 905. Miscellaneous Non-operating Revenues. To this account shall be credited all non-operating revenues accruing to the corporation and not provided for in any of the foregoing accounts. i2. Definition of Non-operating Revenue Deductions account. — To an ac- count entitled " Non-operating Revenue Deductions " shall be charged all mat- ters provided for under the following sub-accounts : a. Rent Expense: This sub-account includes all matters provided for under the following two heads: Leasehold Expense: That is to say, all expense arising in connection with the procuring of revenues from leaseholds having terms greater than one year, including the cost of negotiating contracts, advertising for tenants, fees paid conveyancers, collector's commissions, cost of enforcing payment of rent, cost of ousting tenants, etc., and all other expense arising in connection with such leaseholds. This applies only to leases conveying the property out of the possession of the corporation, and it includes the expense accruing while the property is idle and awaiting an occupant. This head includes 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. Other Rent Expense: This head is analogous to the preceding head "Lease- hold Expense," and differs from that only in that this provides for expense in connection with property let for a term of one year or less. 6. Interest Expense: This sub-account includes all expense arising in connection with procuring interest upon investments, such as expense of col- lection, expense of investigating delay in payment, expense of enforcing pay- ment, and the like. It does not include taxes on such investments. c. Dividend Expense: This sub-account includes all expense arising in connection with the collection of dividends on stocks of other corporations; also all expense incurred in the investigation of the affairs of the corporations whose stocks are held, whether for the purpose of detecting mismanagement 48 Public Slkvice Commission, Second District or for the purpose of inducing the declaration of dividends, and all expense connected with enforcing payment of dividends when declared. It does not include taxes on such investments. d. Others' Operations Expense: This sub-account includes the cost of negotiating contracts whereunder the corporation is to participate in profits resulting from the operations of others; also all expense of collecting the cor- poration's proportion of such profits, and all expense connected with procuring the modification or the dissolution of any such contract. e. Miscellaneous Non-operating Expense: This sub-account includes all non-operating expense (as hereinbefore defined) which is not provided for in the foregoing sub-accounts. /. Non-operating Taxes : This sub-account includes all taxes accruing upon non-operating property and all 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 the account " Non-operating Revenue Deductions " under the head of " Un- collectible Non-operating Revenues ". Note. — In annual reports of corporations to the Public Service Commission this account will be required to be fully analyzed. 22. Income Deductions.— The sum total of the credit balances in the revenue accounts for any particular operation at the close of a fiscal period gives the gross revenue from that operation for that period. This gross revenue diminished by the operating expenses, the taxes, and the uncollectible bills assignable to such operation for the period, gives the income from that opera- tion for the period. Similarly for the non-operating revenues, the non-operat- ing expenses, and the non-operating taxes. The aggregate of the incomes from the several operations and the non- operating income is the gross income applicable to corporate and leased prop- erties. As has before been said, the gross income is, in the usual case, subject to various compulsory deductions, and these are hereinafter called Income Deductions. 23. Definitions of Income Deduction accounts. — In the following definitions the letters and numbers prefixed to the titles of the several accounts are inserted solely for convenience of reference and are no part of the titles or of the definitions: 921. Interest Deductions. Charge to this account monthly (or as otherwise below directed) all mat- ters provided for under the following five heads: Absolute Interest Accrued on Funded Debt: This head includes all interest accruing absolutely on the outstanding funded debt of the corporation. Contingent Interest Accrued on Funded Debt: This head includes, when the contingency occurs, all interest accruing contingently on the outstanding funded debt of the corporation. This includes such matters as interest on income bonds. Interest Accrued on Receiver's Certificates : This head includes all interest accruing on receiver's certificates which are liens upon the property of the corporation or any part of it. Interest Accrued on Other Unfunded Debt: This head includes all interest accruing on all unfunded debt of the corporation except receiver's certificates. Accounts for Gas Corporations 49 Interest Accrued on Debenture Stocks: This head includes all interest ac- cruing on the outstanding debenture stocks of the corporation. Entries in the account " Interest Deductions " must be made in such wise as to show separately the classes above indicated, which will be required to be stated separately in the annual reports to the Public Service Commission. 922b. Rent for Lease of Other Gas Plant. Charge to this account monthly all amounts accrued against the account- ing corporation for rent of gas plant and equipment which it holds under some form of lease from another company or corporation and of which it has the exclusive possession. Taxes accrued on such plant and equipment shall not be charged to this account but to the appropriate Taxes account. If such taxes are (under the contract of lease) payable by the lessor or reversioner, they shall be credited to this account and charged to the appropriate Taxes account. Such taxes, when paid by the lessor or reversioner, shall be charged to its rent revenue account and not to its Taxes account, to the end that taxes upon such plant and equipment shall be reported by the corporation in possession. 922. Other Rent Deductions. Charge to this account the matters provided for in the following sub- accounts : /. Joint Facility Rents: Where any plant or equipment is maintained or operated by another corporation for the joint benefit of the accounting cor- poration and others under a joint arrangement for sharing the expense (on the basis of the relative amounts of benefit to the several participants), if such joint arrangement provides for including in the charge against the ac- counting corporation any pure rent, profit, or return upon such plant or equipment over and above depreciation and other expense of maintenance and operation, such pure rent, or profit, or return upon property shall be charged to this sub-account. Note. — This should he read in connection with revenue account No. 443, " Joint Gas Rent Revenue". (See page 32.) g. Miscellaneous Rent Deductions : This sub-account includes all mis- cellaneous rents payable not elsewhere provided for. Note A. — Rents for furnished offices (and for office rooms in office buildings heated and lighted by the landlord) should not be charged to this account, but to the appropriate expense account. Note B. — Entries in this account must be made in such wise as to permit, an analysis in the annual report of the corporation in accordance with the sub- accounts above defined. 923. Sinking Fund Accruals. Charge to this account month by month all accruals required to be made to sinking funds in accordance with the provisions of mortgages or other contracts requiring the establishment of sinking funds. All accruals to sink- ing or other funds created voluntarily by the corporation and not in pursu- ance of the provisions of any mortgage or other contract or of the require- ments of law shall be excluded herefrom. 924. Guaranties of Periodic Payments. Charge to this account all unsecured accruals of obligations arising under contracts whereby the corporation has guaranteed the annual or more fre- quent periodic payment of money or performance of other obligation on the 50 Public Sekviue Commission, Second Dis tiuct part of another corporation or person, and because of the default of such other corporation or person the liability of the present corporation has be- come actual. This account does not include such matters as guaranties of payment of principal of funded debt and other similar things relating to a series of years, nor does it include any guaranties for which the corporation has protected itself through taking ample security. If insufficient security has been taken in respect of such annual or more frequent payments, the unsecured portion thereof shall be charged to this account. 925. Loss ox 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 coloration from such source shall be charged to this account. 926. Other Contractual Deductions from Income. Charge to this account month by month all contractual liabilities arising from annual or other more frequent periodic matters and not includible in any of the foregoing accounts. This account includes only deductions from income and not any liabilities arising in exchange for goods or other things purchased. 927. Amortization of Landed Capital. Charge to this account at the close of any fiscal period such proportion of the original money cost (estimated if not known) of landed capital as is necessary to cover the proportion of the life thereof expired during such period. Note A. — The amounts charged to this account shall be concurrently credited to account No. 374, "Accrued Amortization of Capital ". (See page 20.) Note B. — When any landed capital expires or is otherwise retired from service «as e. g., through sale), the capital account or other indicant account (if any) originally charged therewith shall be credited with the amount originally charged, the account "Accrued Amortization of 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 he debited with the proceeds of sale (if any), and any necessary adjustment shall be made through the "Corporate Surplus or Deficit " account. 928. Amortization of Debt Discount and Expense. Charge to this account at or before the close of any fiscal period that pro- portion of the unamortized discount and debt expense on outstanding debt which is applicable to the period. This proportion shall be determined ac- cording to a rule, the uniform application of which during the interval be- tween 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 effected by charging all or any portion of such discount and debt expense to account No. 939, " Other Deductions from Surplus," immediately upon issue of the debt or thereafter. 929. Amortization of Premium on Debt — Cr. Credit to this account at or after the close of any fiscal period the propor- tion 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 Accounts fob Gas Cokpobatioks 51 maturity of any debt will completely amortize or wipe out the premium at which such debt was issued. Such amortization may at the option of the corporation be effected by crediting all or any portion of such premium to account No. 931b, "Other Additions to Surplus/' only upon the maturity of the debt. 24. Appropriations. — The balance resulting from closing the foregoing income deduction accounts for any fiscal period into gross income for that period gives the Net Corporate Income for the period. The net corporate income being of the same nature as the corporate surplus shall be closed into the " Corporate Surplus or Deficit " account. The group of accounts which show for any fiscal period the changes in the " Corporate Surplus or Deficit " account are designated the Appropriation accounts, for the reason that sub- stantially all of them are subject onl\ to the discretion of the corporation. At the end of each fiscal period each of the appropriation accounts shall be closed into the " Corporate Surplus or Deficit " account. 25. Definitions of Appropriation accounts. — In the following definitions o! the appropriation accounts the letters and numbers prefixed to the titles of the accounts are inserted solely for convenience of reference and are no part of the titles or of the definitions : 931a. Bad Debts Collected. When any debt theretofore written off as a bad debt is collected, the amount of the collection shall be credited to this account. Expense involved in such collection shall be charged to this account. 931b. Other Additions to Surplus. Credit to this account all additions to surplus because of erroneous account- ing in prior fiscal periods, and all other additions to surplus not elsewhere provided for. NOTE. — A complete analysis of this account will be required in annual reports of corporations to the Public Service Commission. 932. Expenses Elsewhere Unprovided For. 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, for non-feasance, etc.. fines levied on directors, officers, and other employees and assumed by the corporation, dona- dons to funds, to churches and other associations, and other like expenses and outgoes. 933. Dividends on Outstanding Stocks. When any dividend is declared upon any outstanding stocks of the corpo- ration, the amount of such dividend shall thereupon be charged to this ac- count. All entries to this account shall show the amount of stock upon which the dividend is declared, the class of such stock, and the rate of the dividend as well as the amount thereof; and if the dividend is payable in any other thing 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 held in its treasury, the amount of such dividend thereon shall be credited to this account. Entries of credits to this account shall be made with the same de- gree of particularity as is prescribed in the preceding paragraph. 52 Public Service Commission, Second District 934. Amortization Elsewhere Unprovided For. Charge to this account such amortization as is not elsewhere provided for. This account provides for all optional amortization, such as that of discount on stocks outstanding, abandoned property, etc. 935. Appropriations to Reserves. Charge to this account all optional appropriations to reserves. 936. Gifts to Controlled Corporations. Charge to this account all gifts made by the corporation to its controlled corporations, also such portions of all advances thereto as are not carried' as assets. 937. Other Appropriations. Charge to this account all optional appropriations made by the corpora- tion and not elsewhere provided for. Note. — A complete analysis of this account will be required in annual reports of corporations to the Public Service Commission. 938. Bad Debts Written Off. Charge to this account the amount by which debts are written off from the accounts of the corporation when they become stale and are placed in the " bad debt" class. Note. — Such " uncollectible bills " as have been provided for in the heretofore denned " Uncollectible Bills " account must not be included in this account. 939. Other Deductions from Surplus. Charge to this account all deductions from surplus because of erroneous accounting in prior fiscal periods, and all other deductions from surplus not elsewhere provided for. Note. — A complete analysis of this account will be required in annual reports of corporations to the Public Service Commission. LIST OF ACCOUNTS. SCHEDULE A: BALANCE SHEET OR INDICANT ACCOUNTS. Fixed Capital. page G100. Fixed Capital, December 31, 1908 9 G110. Land Devoted to Gas Operations 9 101. Organization 10 G102. Franchises (Gas) 10 G103. Patent-rights (Gas) 11 G104. Other Intangible Gas Capital 11 G121. General Structures 11 G122. General Equipment 12 221. Works and Station Structures 12 222. Holders 13 G141a. Furnaces, Boilers, and Accessories 13 Gl41b. Steam Engines 13 Gl43b. Gas Engines 13 G145. Miscellaneous Power Plant Equipment 13 223. Benches and Retorts 13 Gl43a. Water Gas Sets and Accessories 13 224. Purification Apparatus 14 225. Accessory Equipment at Works 14 231. Trunk Lines and Mains 14 232. Gas Services 14 233 Gas Meters 14 234. Gas Meter Installation 14 235. Municipal Street Lighting Fixtures (Gas) 15 236. Gas Engines and Appliances 15 237. Gas Tools and Implements 15 238. Gas Laboratory Equipment 15 239. Other Tangible Gas Capital 15 G281. Engineering and Superintendence 15 G282. Law Expenditures During Construction 16 G283. Injuries During Construction 16 G284. Taxes During Construction 16 G285. Miscellaneous Construction Expenditures 16 G286. Interest During Construction 17 OHO. Land in Other Departments 17 0102. Franchises in Other Departments 17 0103. Patent-rights in Other Departments 17 0104. Other Intangible Capital in Other Departments 18 O120. Tangible Capital in Other Departments 18 Floating Capital. G10. Materials and Supplies 18 1. Cash 18 2. Bills Receivable 19 3. Accounts Receivable 19 4. Interest and Dividends Receivable 19 5. Other Current Assets 19 Investments. 300. Investments 19 Special Deposits. 311 Coupon Special Deposits 20 312. Dividend Special Deposits 20 313 Other Special Deposits 20 [53] 54 Public Service Commission, Second District Prepayments. page 321. Prepaid Taxes 21 322. Prepaid Insurance 21 323. Prepaid Rents 21 324 Other Prepayments 21 Suspense Accounts. 331. Unamortized Debt Discount and Expense 21 332. Other Suspense 22 Re- acquired Securities. 340. Re-acquired Securities 22 Debt. 360. Funded 23 Unfunded 23 351. Ta^es Accrued 23 352. Receiver's Certificates 23 353. Judgments Unpaid 24 354. Interest Accrued 24 355. Dividends Declared 24 356. Bills Payable 24 G357a. Consumers' Deposits — Gas 24 357b. Other Accounts Payable 24 358. Other Unfunded Debt 25 Reserves. Permanent - 25 371. Premiums on Stocks 25 372. Other Permanent Reserves 25 Temporary 25 373. Contractual 25 Non-contractual 25 . Required 26 374. Accrued Amortization of Capital 26 375. Unamortized Premium on Debt 26 376. Other Required Reserves 26 Optional 26 381. Casualties and Insurance Reserve 26 382. Other Optional Reserves 27 Stocks. 390. Stocks 27 SCHEDULE B: INCOME ACCOUNT. Operating Revenues. 431. Municipal Street Lighting — Gas 30 432. Lighting Municipal Buildings — Gas 30 433. Municipal Heat and Power — Gas 31 434. Miscellaneous Gas Revenue — Municipal. 31 435. Prepaid Gas 31 436. Commercial Metered Lighting — Gas 31 437. Commercial Heat and Power — Gas 31 438. Other Gas Corporations 31 439. Commissions on Others' Gas 31 440. Rent of Gas Appliances 31 441. Gas, Merchandise, and Jobbing Revenue 32 442. Sale of Residuals and Byproducts 32 443. Joint Gas Rent Revenue. 32 444. Other Miscellaneous Gas Revenue 32 Operating Expenses. I. Production Expenses. 601. Works Superintendence and Labor 34 602. Boiler Fuel 34 List of Acgojnts >•• • ••• •'••* ,; • •*'"• 55 PAGE 603. Water 34 604a. Fuel Under Retorts 34 604b. Coal Carbonized 35 605. Coal Gas Enricher 35 606. Generator Fuel 35 607. Water Gas Oil 35 608. Purification Supplies 35 609. Miscellaneous Works Expense 35 610. Repairs of Works and Station Structures 35 GC508. Repairs of Power Plant Equipment 36 GC611. Repairs of Gas Apparatus 36 615. Repairs of Works Tools 37 616. Gas Storage 37 617. Gas from Other Sources 37 77. Transmission and Distribution Expenses. 631. Transmission Pumping 37 C632. Distribution Superintendence, Supplies, and Expenses 37 634. Work on Meters and Consumers' Premises , 38 C635. Repairs of Gas Mains and Services 38 637. Repairs of Gas Meters 39 638. Repairs of Distribution Tools 39 639. Repairs ol Gas Appliances 39 777. Municipal Sheet Lighting Expenses 640. Street Lamp Operation and Repairs 39 IV. Commercial Expenses. G550. Commercial Expenses — Gas 39 V. General and Miscellaneous Expenses. G831. General Administration 40 G838. Insurance 41 G839. Relief Department and Pensions 41 G840. Gas Franchise Requirements 41 G841. Residuals Expense 41 G842. General Amortization — Gas 42 G847. Injuries to Persons and Property 42 G848. General Stationery and Printing 43 G849. Store and Stable Expenses 44 GC852. Miscellaneous Adjustments — Balance 44 Vaxes. G860. Taxes 45 G870. Uncollectible Gas Bills 45 NOX-OPERATIXG REVENUES. G901b. Rent Accrued from Lease of Gas Plant 46 G901d. Miscellaneous Rent Revenues 46 902. Interest Revenues 46 903. Dividend Revenues 47 904. Profits from Operations of Others. 47 905. Miscellaneous Non-operating Revenues 47 Non-operating Revenue Deductioxs. Non-operating Revenue Deductions 47 a. Rent Expense 47 b. Interest Expense • ; 47 c. Dividend Expense 47 d. Others' Operations Expense 48 e. Miscellaneous Non-operating Expense 48 f. Non-operating Taxes 48 g. Uncollectible Non-operating Revenues 48 Income Deductions. 921. Interest Deductions *S 922b. Rent for Lease of Other Gas Plant 49 56 i'uBLio Service Commission, Second District PAGE 922. Other Rent Deductions 49 f . Joint Facility Rents 49 g. Miscellaneous Rent Deductions 49 923. Sinking Fund Accruals 49 f * Guaranties of Periodic Payments 49 iOss on Operations of Others 59 Jther Contractual Deductions from Income 50 9: . Amortization of Landed Capital 59 9L3. Amortization of Debt Discount and Expense 50 929. Amortization of Premium on Debt — Cr 50 Appropriation Accounts. 931a. Bad Debts Collected 51 931b. Other Additions to Surplus 51 932. Expenses Elsewhere Unprovided For 51 933. Dividends on Outstanding Stocks 51 934. Amortization Elsewhere Unprovided For 52 935. Appropriations to Reserves 52 936. Gifts to Controlled Corporations 52 937. Other Appropriations 52 938. Bad Debts Written Off 52 939. Other Deductions from Surplus 52 Gaylord Bros Makers Syracuse, N. Y. PAT. JAN. 21. 1908 «m