Omaha daily bee., 1911-04-26
Railway Commission
Works Out New Rules
for Electric Lines
Fixes Date for Hearing When Matter
of Adopting New Regulations
Will Come I'm.
(From a Staff Correspondent.

LINCOLN, April o. 49, Especial go The
state Railway commission has worked out
set of rules governing the maintenance
and depreciation charges of electric rail-
ways in Nebraska and on May 10. will
give all such common carriers a chance to
be heard on the question. The rules grew
out OF the decisions of the commission in
the case of the local traction company and
are substantially as follows.
Until otherwise ordered. all electric rail-
| ways street OF interurban operating in
MePreska shall set aside to the credit of
maintenance and depreciation accounts
and charge the same to operating expenses
monthly one-tweltth of per cent OF the
present value OF their depreciable physical
property used In operation.
All expenditures for maintenance shall
as they are made or incurred, be charged
20 thelC appropriate subsidiary mainten-
ahce accounts, and all these various main
tenance accounts shall then be closed and
cleared into the maintenance and deprecia-
ton account monthly
No charge shall be made against main
tenance additions or betterments for the
service OF regularly salaried officials and
employees, except only where such officials
the work and their times exclusively de-
voted to it.
AS distinguishing between additions and
Detterments and maintenance, II is to be
understood that additions and betterments
shall include additional structures, prop
erty' facilities or equipment not taking
the place OF anything previously existing,
or the enlargement or Improvement of ex-
listing properties, facilities or equipment,
ana when for enlargement or improvement,
only the proper proportion of the cost of
the new structure, facility or equipment
of the improved or higher class, proposed
to take the place of that previously ex-
listing. When expenditures are made for
replacement, enlargement or improvement
of existing facilities or equipment, then
| the amount which may be charged to
| "A nd hat for naVafa han rnf I'D
the difference between the actual cost of
the new work, facility or equipment, and
the value of the old. replaced in kind,
at the time when the new work is being
done, together with the cost Of taking
up the old and making preparation for
, the placing Of the new work, facility or
equipment. The value of the old, plus
cost of removal, and preparation for new,
less value of salvage, to be charged to the
maintenance and depreciation account, and
salvage from old to be charged to material
account. p. ..-s e-1G- t-- .fa
When construction work is being done,
the division as between that part Of the
cost which Is chargeable to maintenance
and that which Is chargeable to better
ments and additions shall be definitely and
! distinctly made from month to month, and
accounts, so far as maintenance Is az
fected, shall be closed into the maintenance
and depreciation account monthly.
In case, however, that the amount TO be
charged to maintenance and depreciation
account is large or extraordinary, and its
| inclusion in the operating expenses for a
| single year Will unduly burden the Operat-
| ing expense accounts for that year, upon
| application to the commission, such charge
may be carried in an appropriate property
abandoned" or suspense" account, and
| charged off to maintenance and deprecia-
| ton account in such installments and
| spread over such length of time as may be
determined upon by the commission.
When property Is abandoned apd not
| replaced, the original cost Carefully esti-
mated, II not known should be credited to
the additions and betterments account, and
the amount so credited, less salvage, shall
be charged directly to profit and loss ac-
count and shall not pass through the
maintenance and depreciation account
When facilities are reconstructed or re-
placed In kind, all expenditures and costs
incident thereto shall be directly chargea-
BILE TO maintenance account; IL being in
tended herein especially, that reconstruc-
ton accounts shall not be carried from
month to month over q long period and
then apportoned as between betterments
and maintenance, but that the appropriate
charge to maintenance accounts for such
construction or reconstruction shall be
made monthly.
Paving, when none has Heretofore ex-
listed. shall be a charge to betterments, but
the work preparatory, II any Is necessary
to the form of realignment, lowering or
raising the track, shall be considered a
maintenance charge In repaving, replaced
In kind. the entire cost shall become a
charge to the maintenance account.