The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1908-03-06
Will Give to Different Depart
meuts Added Work.
EXHAUSTIVE REPORTS
Are to Be Made Covering De.
probation of Charges.
Other Items of Interest in
Railway Circles.


have been burdened with another big
piece o. work by the interstate COM
mission, with brief time in which to
do it. Through Professor Adams an
exhaustive review Is to be made of
depreciation charges by the Interstate
carriers during the six months ended
December 81. Every road has been
called upon to make answer under
oath not later than March 2, to an
elaborate list of specific inquiries.
Blanks have been furnished and the
roads are asked to include in their
responses such other information as
will make your treatment of depre-
citation entirely clear
The first blank to be filled out calls
for the number of pieces of equip
ment OF every class in the possession
OF the railroad during each of the six
months, the separate valuation of
each class of equipment used as ba-
loWance, the annual rate of deprecia-
tlon liked. the average estimated life
OF the equipment, and the annual and
monthly depreciation charge.
A separate table is supplied for
each month Following these tables
Is a series of questions which probe
very thoroughly into the principles
upon which the valuation of equip
ment has been determined, the rate
of depreciation fixed. the average life
of equipment estimated and the like.
Another set of tables calls for the
number OF pieces OF equipment plac-
ed in service during each of the last
five years, the total in service on July
l last, and the average age of equip
ment in service on that date. The
purpose of this inquiry is evidently to
throw some light upon the age and
conditions of each carriers equipment
on July 1, the date upon which the
new system of accounting for depre-
citation went into effect. In respect
to freight cars. this inquiry calls for
classification figures in great detail,
indicating the nature, construction
and capacity of this class of equip
ment.
Another set of tables calls for a
statement of all expenditures for
equipment purchased, built or other
wise acquired during the year ended
July 1, 1907, by months, and the pro-
portions of such cost charged to re-
pairs and renewals, to specific funds,
to salvage account and to capital ac-
count. A similar table follows for
recording all equipment retired be-
tween July 1 and December 81, 1907.
Finally the inquiry concludes with
elaborate tables for setting forth the
operating revenues, operating ex-
ton for each of the six months be-
tween July 1 and December 81, with
the corresponding figures OF the pre-
vious year Maintenance of equip
ment figures are called for in special
detail, that account having been d.
vided into no less than twenty SUBJ
accounts.
1t takes some familiarity with the
accounting methods of railroads and
the completely of their business to
appreciate fully the labor involved in
answering such a series of questions.
1t is not merely clerical labor, more
over, because no railroad would VEN
ture to file a sworn statement which
had not been carefully verified in all
its details by responsible accounting
officer. The tables of operating reve-
nues and expenses will not present
as much difficulty as will those call
ing for the number and valuation of
the different articles of equipment in
service during certain months and
years, in the past and the rate of de-
probation which the roads have OBJ
served in making their monthly
charges to that account since July 1.
A great many railroad companies,
probably most of them, have deter
mined their depreciation charges by
making an intelligent guess at the
average life of locomotives, passenger
cars and freight cars and charging
dCCOI 1t Will pC III
dertaking to apportion these charges
as infinitely as the commission de-
sires.
The commission has left to the
railroads themselves the determine
ton of the rate at which depreciation
should be charged off for each class
of equipment during the present ifs
cal year, the intention being to fix a
normal rate of depreciation for each
class of equipment, and for each rail-
road whenever sufficient data upon
which to determine such rates has
been gathered. There has been
plenty of grumbling from railroad Of
ficiaIs because the commission has
compelled them to include monthly