Depreciation Charges of Railroads And Public Utilities a Memorandum Filed With

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00, whereas the charges to "Profit and Loss" for "loss on retired road and 20 equipment, " during the twenty-four months from December 31, 1915, to December 31, 1917, were about $30, 000, 000. 00. Owing to the change in the reporting year from that ending June 30th to that ending December 31st, there is an overlap of six months in the income accounts and profit and loss accounts contained in the annual reports relating to the year ended June 30, 1916, and that ended December 31, 1916, and it is... impracticable to say, from the figures published by the Commission, what this item of "loss on retired road and equip- ment " charged to "Profit and Loss' is for the eighteen months from June 30, 1916, to Decem- ber 31, 1917. It is safe to say, however, that it is materially less than thirty millions of dollars, and therefore that the amounts charged to operat- ing expenses for "depreciation" during those eighteen months were more than $194, 000, 000. 00 in excess of the amount of retirements actually made during that period, so that for the five and one-half years from June 30, 1912, to December 31, 1917, the amounts charged for "depreciation" in operating expenses were over $390, 000, 000.

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