HARRY W. NICE, GOVERNOR. 53

other sources connected with said business, excluding, however,
receipts from the sale of capital assets and property not sold
in the regular course of business and also receipts from inter-
est, dividends, rents and royalties separately allocated as above
provided. Accounts receivable from sales and other sources
arising from business during the year shall be included in the
formula if the corporation's return is made on the accrual
basis.

(5) Receipts from sales and other sources shall be assigned
to the office, agency, or place of business of the corporation
at or from which the transactions giving rise to such receipts
are chiefly handled and attended to.

(d) For the purpose of this section the word "sale" shall
include all exchange, and the word "manufacture" shall in-
clude the extraction and recovery of natural resources and all
processes of fabricating and curing.

3. Where the income is derived from the conduct of a public
utility, the portion thereof attributable to business within this
State shall be taken to be such percentage of the total of such
income as the tangible property and business within the
State bear to the total tangible property and total business,
the percentages of tangible property and of business being
separately determined as hereinafter provided, and the two
percentages averaged.

(a) For the purpose of the foregoing computation the value
of the tangible property shall be taken to be the average value
of the tangible property held and owned by the corporation
in connection with such business during the year for which
the income is returned, excluding any property the income
of which is not taxable or is separately allocated under the
foregoing provisions of this sub-title.

(b) In determining the tangible property located within
this State of a railroad company operating both within and
without this State, the valuation of car rolling stock and
equipment and the locomotive rolling stock and equipment
within the State shall be found by applying to the total valua-
tion of the entire rolling stock and equipment of each respec-
tive class belonging to such company that proportion or per
centage which the car mileage within this State during the
income year bears to the total car mileage of such company's
cars, and which the locomotive mileage within the State dur-
ing the income year bears to the total locomotive mileage of
such company's locomotives, used in the conduct of its busi-
ness both within and without the State for that year.

(c) The business of the public utility shall be measured
by the amount of receipts from the carrying on of the busi-