FORMULA FOR USE IN DETERMINING THE RATE OF COMPENSATION (TIME AND MILEAGE) TO BE PAID FOR THE USE OF FREIGHT TRAIN CARS BY TYPE OF CAR PREPARED BY THE SECTION OF COST AND VALUATION OF THE BUREAU OF ACCOUNTS TABLE OF CONTENTS Summary 3 Summary 5 Computation of 3-Year Averages for use in Rate Tables. • Summary of Investment Costs per $1,000 Original Cost.. Car Hire Rate Table Mileage Rate. Car Hire Rate Table Daily Rates.... •Separation of Rail Freight Operating Expenses, Rents, Taxes (excluding Federal Income Taxes) and Cost of Capital between Per Diem Freight-train Car Ownership Costa and Other Costs.. •Computation of Percentages to Use to Distribute Way and Structures Expenses, Equipment Expenses (other than freight-train cars) and general administrative expenses in Schedule 1, Sheet 1.. •Computation of Percentages to Use to Distribute Transportation Expenses between Ownership Costs, Other Expenses and General Overhead in Schedule 1, Sheet Computation of Percentage of Expenses Not Applicable to Non-Revenue Freight..... Computation of Active Per Diem Car Days and Per Diem Days Payable..... Pormula for Calculating Cost of Capital and Cost of Capital Rates for use in Summary ........ • `Distribution of Car Repair Ownership Costs by Type of Preight-train Car. Statistical and Repair Summary. EXPLANATORY STATEMENT PURPOSE The Section of Cost and Valuation of the Bureau of Accounts has developed a formula for the purpose of calculating the rates of compensation to be paid for the use of others' freight-train cars, time and mileage. The In certain sections of the formula, source references are made to accounts or items in the annual reports of the railroads. It is the intent of the formula that expenses and other data may be take from the appropriate SUMMARY 1 The purpose of Summary 1 is to distribute car repair ownership costs by type of freight-train car. SUMMARY 2 The purpose of Summary 2 (Statis ica! and Repair Summary) is to calculate per diem days payable per car, line-haul car-miles per car, and average repair cost per car by type of freight-train car. SUMMARY 3 The purpose of Summary 3 (Computation of 3-Year Averages for Use in Rate Tables) is to compute averages for car repair expenses, per diem days payable and line-haul miles per car. SUMMARY 4 The purpose of Summary (Summary of Investment Costs per $1,000 Original Cost) is to calculate depreciation charges, interest on value and allowance for property taxes for use in the Car Hire Rate Table (Summary 6), for each type of freight-train car. SUMMARY S The purpose of Summary 5 (Car Hire Rate Table-Mileage Rates) is to calculate charges per line-haul mile by cost bracket and age for each type of freight-train car. SUMMARY 6 The purpose of Summary 6 (Car Hire Rate Table Daily Rates) is to calculate daily time charges by cost bracket and age group for each type of freight-train car. SCHEDULE The purpose of Schedule 1, sheets 1 and 2, is to accumulate freight expenses and distribute them between ownership costs, other expenses, and general overhead. WORKSHEET 1 The purpose of Worksheet 1 is to compute percentages for use in future applications of Rail Form H to apportion Way and Structures Expenses (excluding depreciation), Way and Structures-Depreciation, Equipment Expenses-Other The purpose of Worksheet 2 is to compute percentages for use in future applications of Rail Form H to apportion Transportation Expenses between ownership costs, other expenses and general overhead in Schedule 1. WORKSHEET 4 The purpose of Worksheet 4 is to compute per diem days payable by type of freight-train car. These are converted to per diam days payable per car for use in computing daily time charges in Summary 6. The purpose of Worksheet 5 (Formula for Calculating Cost of Capital and Cost of Capital Rates for Use in Summary 4) is to (1) show the method used to develop cost of capital percentages and (2) provide cost of capital rates for use in Summary 4 (Summary of Investment Costs per $1,000 Original Cost). Distribution of Car Repair Omership Costs by Type of Preight-Train Car (Dollar Amounts in Thousands) Summery 1 Sheet 1 of 1 Total Car Percent of Total 2/ (3) Other Coats Related to Car Repair 2/ (C) Total Car Repair Costs / (5) Line No. V Schedule 1, sheet 2, lines 37 through 52, col. (6). Lines 1 through 15, col. (2) divided by line 16, col. (2). 100,000% Schedule 1, sheet 1 and 2, cel. (6), sum of lines 9, 14, 15, 20, 22, 23, 26, 28, 31, and 32, insert in line 16, col. (4), & multiply line 16 by each percentage on lines 1 through 15, col. (3). Col. (2) plus col. (4), lines 1 through 16. Top-Special Service. -Mechanical. Refriger tor-Men-Mechanical. Flat-TOPC/COPC.. Plat-Multi-Level. Plat-Ceneral Service.. Statistical and Repair Smary (Dollar Amounts in Thousands) Summary 2 Sheet 1 of 1 Summary 1, Lines 1 through 16, col. (5). Work sheet 4, Lines 1 through 16, col. (11). Col. (3) divided by col. (7). Porn 08-A, Train and Yard Service, Lines 39 through 56 and 58 through 75. (Sum of empty and loaded for each type.) Note: Tank cars are to be included in all other car types. Col. (3) divided by col. (7). Work sheet 4, Line I through 16, col. (4). Col. (2) divided by col. (7). |