CHAPTER TWENTY-SEVEN.

Street Railway Accounting.

Street railways having been organized so long, and the income being strictly cash, the accounting is very simple when properly systematized; however, neglect in properly organizing or conducting this department will be as fatal to the financial success of the road, as would neglect in the operating department.

In order to properly conduct this department, an efficient clerical force is necessary, and the work should be done in accordance with proper rules and regulations, combining and condensing the items as much as possible.

Street Railway Accounting is very similar to that given for Electric Lighting. A few general headings are used, which are subdivided into as many accounts as may be desired.

The Voucher System should be adopted, using the same form of Voucher Record as given for Electric Lighting, excepting the change of headings and subdivisions.

A careful examination of the following classification will enable one to arrange a Voucher Record without any difficulty, however, the general headings and subdivisions will be fully explained.

Cost of Road and Equipment.

is

Superintendence and General Expense. This account charged with the salaries and personal expenses of general officers, their assistants, clerks, stationery, furniture, fuel and all other office supplies.

Engineering. To this account is charged the wages of engineers, draughtsmen, and assistants, with the office, stationery and other expenses.

Right of Way.-The cost of obtaining franchises, the salaries and expenses of agents in securing consents, and all payments for right of way are chargeable to this account.

Real Estate and Buidings.

Accounts Payable.

Bills Payable.

Sundries.

Loss and Gain (Deficit).
Deficit of Previous Years.

This account is charged with the cost of all real estate and buildings used exclusively for railroad purposes, including all necessary furniture and fixtures.

Any property owned by the company, not used for railroad pur. poses, should be kept in a separate account as an investment.

Road Bed and Track. This account is chargeable with the cost of the foundation, material and labor laying track, paving, wiring, etc.

Overhead Construction.-The items chargeable to this account are, poles, wire, insulating devices, and the cost of placing the same. Rolling Stock.-Charge this account with the cost of cars, trucks, grips, motors, wiring, trolley, switches, furnishings, etc.

Miscellaneous Equipment.--Charge this account with the cost of wagons, sweepers, snowplows, with grip or electrical equipment, and other vehicles.

Power Plant.-This account is charged with the cost of engines, boilers, generators, pit machinery, cable winding drums, tension devices, cranes, pumps, shafting, switchboards, belting, piping, foundations, and all labor placing same, also with heating and lighting appliances.

Cable and Carrying Sheaves.-The cost of wire ropes with carrying and terminal sheaves and the labor placing same ready for operation, are charged to this account.

Repair Shops.-This account is charged with the cost of all iron and wood working machinery, tools and power, if it is independent of the power plant, also the expense of placing the machinery, etc.

Additions and Betterments.-Charge this account with such expenditures as actually increase the construction and equipment, also such expenses for renewals or repairs as exceed what is necessary to make good any depreciation of road and equipment.

Income.

Earnings.

Income from Passengers.—This account is credited with the cash receipts for fare and sale of tickets.

Income from Mail and Express.-Receipts for transporting freight, express and mail are credited to this account.

Income from Advertising.-Credit this account for receipts for advertising in cars, buildings, and on tickets.

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Miscellaneous Income.

Credit this account with the receipts from the sale of manure, old material and worn out animals. It desired the receipts from these

sources may be credited to the account, to which the new material purchased to replace the old is charged.

Interest and Rents.-This account is credited with the interest received on securities or loans, also rents for buildings, grounds, leased lines or tracks, and power furnished other companies.

Surplus of Previous Years.-The net income, less the payments made therefrom, on the business of the previous years, is credited to this account.

Operating Expenses.

Salaries of Officers and Clerks. The salaries of the general officers, heads of departments, division superintendents, their assist ants and clerks, should be charged to this account.

Office Service and Supplies.-The items chargeable to this account are, books, stationery, blanks, tickets, circulars, advertising, wages of porters, me: sengers, and expense of heating and lighting the general offices.

Insurance. This account is charged with the cost of insurance on the property used for Railroad purposes, the cost of guarantee against accidental bodily injuries, or death of employees, passengers and the public, and the cost of conducting employees' mutual aid association.

If preferred, the cost of guarantee may be charged to Guarantee Account, or Injuries to Persons and Property.

Legal. This account is charged with the salaries, fees, and expenses of attorneys for all legal purposes.

This account may be subdivided if preferred.

Injuries to Persons and Property.-Charge this account with pay ments made for damages to, or destruction of property (not belonging to the company) for persons killed or injured, wages to disabled em ployees, medical attendance and other expenses, (except legal).

Removal of Snow and Ice. This account is charged with the cost of labor, salt and other expense for removing snow and ice from tracks, walks, etc.

Contingent.-Any miscellaneous expenses or rents incurred exclusively in the operation of the road, for which other provision is not made, should be charged to this account.