PENN CENTRAL

POST MARCH 1974

Planning a New System

New report proposes changes

in Eastern rail network

A proposa l for s t r e a m l i n i n g t h e Eastern railroads was put forward

last month by Secretary of Transporta­tion Claude S. Brinegar.

He said that only by eliminating un-needed tracks and concentrating the freight on fewer but improved rail lines can a financially healthy system be set up.

He also proposed that prosperous rail­roads of the Northeast and Midwest participate by consolidating their routes and coordinating their trains with a new government-sponsored system.

Secretary Brinegar's recommenda­tions were part of a lengthy report de­tailing the rail services that are needed in a 17-state region stretching from Maine and Virginia to Indiana and Illi­nois.

The report was the first step required by the Regional Rail Reorganization Act, which was signed by President Nixon on January 2. The Act sets up a 21-month timetable for creating a new railroad system out of the bankrupt roads.

The report says that of the 61,000 miles of railroad line in the 17-state region, about 15,500 miles are not needed and can be eliminated.

If this reduction—about 25 percent— is made, service will still be preserved for 96 percent of present freight traffic, the report says.

And much of the remaining 4 percent could possibly be taken care of by future changes in the plan, by Federal-State subsidies for money-losing branches, or by combined truck and rail service.

Eliminating excess track would mean improved service, the report contends, because funds could then be concentrated on upgrading necessary lines to elimi­

nate slow orders and other impediments to first-class transportation.

The report gave two main reasons why railroad lines are "over-built" for today's needs:

1. The present routes were almost all laid out before 1920—before government funds created the interstate highways that have siphoned off much high-value freight, and the waterway systems that have taken a large portion of the bulk freight like coal and grain.

2. Meanwhile, the railroads have been making operating improvements—such as more powerful locomotives, bigger freight cars, and centralized traffic con­trol—which have increased main-line track capacity, making it possible for one track to do the work of two.

The report made the following major recommendations:

Local Service: Pickup and delivery should generally be provided by a single railroad, except at major traffic points.

Interstate main-line service: Com­petition by more than one railroad should be continued for cities that produce at least eight trainloads of freight per day moving more than 200 miles in the same general direction. Points that produce less freight "do not require main-line service by more than one railroad," the report said.

19 zones are listed

for competitive service

The Secretary of Transportation's re­port divides the 17-state region into 184 geographical zones.

Of the 184, the report lists 19 zones that produce enough traffic to justify main-line service by two or more com­peting railroads. The 19 zones are cen­tered around the following cities:

T h e railroad analysis, maps and recommendations fill these three books totaling almost 1000 pages.

Boston, New York, Newark, New Brunswick, Philadelphia, B a l t i m o r e , Washington, Norfolk, Beckley, West Va., and Bristol, Va. (coal traffic cen­ters) ; Pittsburgh, Buffalo, Cleveland, Toledo, Detroit, Gary, Chicago, Cincin­nati and St. Louis.

These 19 zones account for about 48 percent of all the originated and termi­nated freight in the 17-state region. In addition, the four major gateways— Washington, Cincinnati, St. Louis and Chicago—account for a majority of the interchange to and from other regions of the U.S.

The report analyzes the rail routes between major points and indicates how the lines could be consolidated while preserving competition. The following examples are given, not as definite pro­posals but as suggestions of the kinds of steps that could be taken in developing the final system plan.

Boston-Buffalo Route: The PC line between Boston and Albany would be the main line. The Boston & Maine route would become a feeder line to the PC main line. Between Albany and Buffalo, the Penn Central and Erie Lackawanna main lines would be retained as primary routes. A solvent railroad, such as Dela­ware & Hudson, would begin serving Boston, introducing new competition.

Buffalo-Cleveland-Chicago Route: Penn Central and Norfolk & Western would compete between Buffalo and Cleveland, but operate on consolidated lines. Consideration would be given to consolidating N&W and B&O main-line operations between Cleveland and Chi­cago. Erie Lackawanna would be con­sidered as an alternative to the PC-N&W route because it provides a bypass around busy Buffalo for east-west traf­fic, but would not be considered as an alternative west of Cleveland.

Washington Gateway-Newark, N. J., Route: This Penn Central route would have competition from the B&O, which would be permitted to buy, lease or ob­tain trackage rights over the Reading and the Central of New Jersey lines into Newark. The legislation provides that Amtrak must be afforded an opportunity to acquire or lease Northeast Corridor trackage.

Detroit-Chicago Route: Two routes would be retained—(1) C&O from De­troit to Lansing and Grand Trunk West­ern from Lansing to Chicago; and (2) N&W from Detroit to Butler, Ind., and Penn Central from Butler to Chicago. Joint use of facilities and coordination of services would be recommended.

New York-Newark-Pittsburgh Route: Penn Central has the heaviest traffic and is recommended as the primary route; but the route via Central of New Jersey, Reading and B&O should also be con­sidered. A third route, via Lehigh Valley,

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Reading, Western Maryland and N&W, should be considered as an alternative route east of Hagerstown, Md., but is excess capacity west of Hagerstown.

ICC arranges hearings

on transportation report

The Secretary of Transportation's re­port will now be reviewed by interested parties. The Interstate Commerce Com­mission has set up a new agency, the Rail Services Planning Office, to coordi­nate this review.

As required by the Rail Reorganiza­tion Act, this Office will solicit the views of governors, mayors and other pub­lic officials; shippers, manufacturers, wholesalers, retailers, consumers of products shipped by rail and the Depart­ment of Defense.

Public hearings were arranged at the following locations:

March 4: Washington, D.C., Boston, Detroit, Pittsburgh, Columbus, 0., Char­leston, West Va., and Scranton, Pa.

March 5: Albany, N. Y. March 11: St. Louis, Indianapolis,

Chicago, Green Bay, Wis.; Philadelphia, Baltimore, New York and Hartford, Conn.

May 17: Altoona, Pa. The ICC stated that hearings were to

"continue daily, if necessary, to afford all interested persons an opportunity to present their evidence."

After reviewing the testimony, the Rail Services Planning Office will pre­pare an evaluation of the Secretary of Transportation's report. This is to be delivered to the United States Railway Association within 120 days after the signing of the Act—that is, by May 2, 1974.

U.S. Railway Association

is formally established

The United States Railway Association (USRA) has the job of restructuring the bankrupt Eastern railroads into a mod­ernized railroad system, and assigning the funds to get it going.

USRA will use the Secretary of Trans-

portation's report as a starting point for its planning.

(The actual operator of the new rail­road system will be the Consolidated Rail Corporation, an organization to be set up around the end of October, 1974.)

USRA came into being on February 1. Articles of incorporation were filed in a Federal Court at Washington by Secre­tary of Transportation Claude S. Brine-gar, Secretary of the Treasury George P. Schultz, and Interstate Commerce Commission Chairman George M. Staf­ford.

These three officials will serve as mem­bers of the USRA Board of Directors. Seven additional members and a chair­man are to be appointed by President Nixon, subject to Senate approval.

In accordance with the Rail Reorgani­zation Act, lists of nominees were sub­mitted by a number of groups, and President Nixon was to select the seven Board members as follows:

One member from a list submitted by the Association of American Railroads, one from the AFL-CIO, one from the National Governors Conference, one from the National League of Cities and Conference of Mayors, two from shipper organizations, and one representing fi­nancial institutions.

Courts must decide

future of bankrupt roads

There are eight bankrupt Eastern rail­roads: Penn Central, Erie Lackawanna, Reading, Central of New Jersey, Lehigh Valley, Boston & Maine, Ann Arbor, and Lehigh & Hudson River.

They will not automatically become part of the new government railroad plan. The Federal Court in charge of each railroad must make the decision.

Each Court will determine if the rail­road can be reorganized as a financially self-sustaining company and the public interest would be better served in that way than under the new government plan.

If the Court decides that such is the case, the railroad will go it alone.

The decision must be made by May 2, 1974.

If the Court decides that the railroad

can not be reorganized on its own, the railroad may be taken into the govern­ment-sponsored system. However if the Court finds that the Act does not provide a process which would be fair to the railroad's claimants, the Court may dis­miss the reorganization proceedings, opening the way for possible liquidation of the railroad.

This final decision must be made by July 1, 1974.

Federal Judge John P. Fullam, in charge of the Penn Central reorganiza­tion, set a hearing for March 25 in the U. S. Court House at Philadelphia to consider this matter. All parties intend­ing to participate in the hearing were required to file briefs by March 18.

The Trustees of the bankrupt Boston & Maine have already indicated that they do not want inclusion in the gov­ernment plan because they believe the B&M can be reorganized on its own. A similar position is reported to be favored by Trustees of the Erie Lacka­wanna and Central of New Jersey.

Meanwhile, several creditors of Penn Central Transportation Company have filed suits to have the Regional Rail Re­organization Act declared unconstitu­tional, on the grounds that it does not assure fair compensation for the prop­erties to be taken over by the new Con­solidated Rail Corporation.

Under the Act, Consolidated Rail will issue its own stock, of undetermined value, as payment to the bankrupt rail­road companies in exchange for rail lines and equipment. Consolidated Rail may also give, as payment, up to $500 million in government guaranteed securities.

This is not sufficient payment, says the suit filed by seven banks and five insur­ance companies which seek repayment of funds they have loaned to Penn Central Transportation Company.

A similar suit was filed by Richard Joyce Smith, Trustee for the estate of the bankrupt New Haven Railroad.

A separate suit was filed by an attor­ney for Penn Central Company, the parent of Penn Central Transportation Company. This suit contends that a take­over of the railroad's property by the g o v e r n m e n t - s p o n s o r e d corporation would be illegal because it would not adequately take care of the interests of Penn Central stockholders.

E x p a n d i n g Piggyback During 1973, Penn Central hauled more than 600,000 loaded trail­

ers and containers — approximately 20 percent of the total piggyback traffic in the United States.

"Substantially all of this business on the Penn Central was carried in exclusive piggyback trains, with special schedules designed to bypass yards and offer expedited service," said Paul Funkhouser, senior vice president-sales and marketing.

"Last year, we acquired and placed in service 1,100 trailers, con­verted some 200 automobile rack cars to piggyback flatcars, and open­ed new Trail Van piggyback termin­als at Valleyfield, Quebec, and Harrisburg, Pa.

"In addition, we increased the capacity of our TrailVan piggyback terminals at Baltimore, Detroit, Kalamazoo, and Montrose, Ontario,

while improving our parking facil­ities at TrailVan terminals in several major cities."

Penn Central is taking further steps in 1974 to meet expanded demand for TrailVan piggyback ser­vice, Mr. Funkhouser added.

"We are arranging the acquisition of an additional 1,000 Penn Central trailers, with delivery scheduled for April 1 , " he said.

"Last month our Trustees obtain­ed the approval of the Reorgan­ization Court to acquire 575 ad­ditional 89-foot flatcars for trans­porting highway trailers and con­tainers.

"On a related front, we're pre­paring a capital program which calls for the expenditure of $3 million in 1974, and the same amount in 1975, for TrailVan expansions and improvements."

Penn Central often receives ap­preciative letters about employees whose names aren't k n o w n to the writers.

It frequently takes a lot of dig­ging to f ind out w h o the employees are. A n d when they're discovered, they're usually surprised that any­b o d y w o u l d make a fuss about their simple acts of considerate service.

Here are some examples.

WHO ARE THEY?

Stands Out"

Albert J . Franck, of Media, Pa., wrote to Penn Central Post about t w o recent trips on a N e w Y o r k - t o -Philadelphia train which carried a snack bar.

"It was presided over b y an at­tendant w h o was not only a most per­suasive salesman, but w h o was pos­sessed of the gift of turning an ordinary impersonal j o u r n e y into a house party," Mr. Franck wrote. "Strangers got to talking with one another.

"Almost all o f the snack bar at­tendants are amiable, complaisant individuals, but this man stands o u t

"Who is he?" A bit of checking identified h i m : J o h n W. Haynes, a buffet lounge

attendant, with 28 years' service. Here he is, ready to serve.

Emergency Action A man suffered a heart attack

while riding a commuter train on the N e w Haven line.

A n o t h e r passenger, J . Robert Morton, vice president o f Combust­ion Engineering, Inc., later wrote to Penn Central:

"I think that y o u should k n o w that the employees o n the train, as well as the individuals that met the train w h e n we pulled into Stamford, truly handled the situation admir­ably.

"Evidently, b y means of the train radio, they had called ahead, because the train was not on the platform at Stamford more than 2 or 3 minutes before police arrived w i t h oxygen and a respirator.

"I don't believe it was 5 or 8 minutes before an ambulance was backed u p to the platform. In the meantime the conductor had a stret­

cher at the seat ready f o r the use of the ambulance attendants.

"I feel y o u should k n o w the fine manner in which the employees of the Penn Central performed."

T h e train crewmen involved were Conductor E d w a r d X . Schulman and Trainman Frank C. Sargent

They're pictured above.

Delightful David B. Warren, of General El­

ectric, N e w Y o r k , wrote to express thanks for prompt and courteous assistance in replacing a commuta­tion ticket that had been ruined in the family washing machine.

He particularly mentioned the gracious manner of "a delightful w o m a n , whose name I failed to re­cord."

Some checking identified her as Eleanor A . N e w m a n , of the Chek-It office at Grand Central Station. She's s h o w n below.

Suved: 1 Battery Graham M. Brush, Jr. , o f Prince­

ton, N. J . , wrote about an awful error he made. When he parked his car and boarded a train for N e w Y o r k , he left his headlights burning.

When he returned that n i g h t he f o u n d this note on the car:

You left your lights on. We dis­connected the battery cable. Cond. Train 3744.

"I w o u l d have had a dead battery if it were not for the thoughtfulness of y o u r conductor," Mr. Brush later

wrote to Penn Central. "I wish to write h i m personally. W o u l d y o u be so kind as to send me his name and address?"

T h e conductor was D. E. Melhorn, a veteran in N e w Jersey commuter service (photo below).

High Power It was a tense m o m e n t A large

cable had fallen on a c o m m u t e r train at a station platform in Philadelphia, causing a short-circuit f r o m the pow­er-carrying pantograph to the roof and platform side of a coach.

T r a i n crew members quickly di­rected the c r o w d of waiting passen­gers to a safe area on the platform.

" T h e alertness and concern of these crew members is certainly commendable," an observer wrote.

"There is n o doubt that the action taken by this crew was instrumental in preventing serious injuries."

T w o crewmen involved are shown below: Trainman J . J . Delaney, 3rd, and Conductor W . J . Crawford.

"But that IS my name! Mom worked for Central and Pop worked for Pennsy.

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The Financial Picture Emergency Cash Need

The Trustees last month applied for emer­gency financial aid under the Regional Rail Reorganization Act.

The Act authorizes the U.S. Secretary of Transportation to make available to bankrupt railroads "such sums as are necessary for the continued provision of essential transportation services."

The Trustees stated that Penn Central faced a cash deficit in the last week of February, and they estimated that by the end of March the railroad's cash would be $11.1 million short of meeting payrolls and other current costs.

Among the costs were installments due on February 15 and March 1 for locomotives and freight cars acquired "on t ime." The February 15 payments had been postponed by taking advantage of grace periods.

"Despite the use of all self-help measures available, we foresee an inability to discharge these installments as they mature ," the Trustees wrote to Secretary of Transportation Claude S. Brinegar.

If the installments were not paid, they said, there was the risk that the creditors would re­possess the equipment.

Secretary Brinegar agreed to aid Penn Central by paying the installments, totaling about $10.8 million. In return, the Government would acquire an interest in the equipment.

On March 1, this arrangement was approved by Federal Judge John P. Fullam, in charge of the Penn Central reorganization.

The Trustees had previously forecast a cash deficit of more than $20 million by the end of August. The emergency financial aid they re­quested would lessen, but not eliminate, the cash deficit predicted for August.

The emergency funds, the Trustees stated, would assure continued operations for the im­mediate future. It would provide time, they said, to permit the newly created United States Railway Association, the Department of Trans­portation and Penn Central to work out mutu­ally satisfactory arrangements contemplating a more permanent program for the improvement and rehabilitation of the railroad.

1973 Financial Summary Penn Central Transportation Company issued

a preliminary report showing a loss of $189,002,900 from ordinary operations for the year 1973. This was $8,899,749 less than the 1972 loss of $197,902,649.

There were, in addition, certain "extraordin­ary" items. In 1973, the railroad had an extraordinary credit of $16,453,071, resulting from settlement of a loan between a financial subsidiary of the Penn Central Company and two railroad subsidiaries. In 1972, there was an extraordinary cost of $24,926,601 resulting from the devastation of Tropical Storm Agnes.

With these figures included, the net loss for 1973 was $172,549,829, compared with a net loss of $222,829,250 for 1972.

This report is in accordance with Interstate Commerce Commission regulations. The figures are on a fully accrued basis, which means they include certain rents, taxes and interest which are not being paid, having been deferred by order of the Federal Court in charge of the Penn Central reorganization.

Operating revenues from freight, passenger, mail and other sources totaled $1.96 billion in 1973, compared with $1.83 billion in 1972.

Employment and W a g e s The number of Penn Central employees de­

creased 3.7 percent in 1973. But the total com­pensation for employees went up 6.2 percent, rising above l l/4 billion dollars for the first time.

These are the figures: Number of employees, according to the year-

end count: 78,258 in 1973, compared with 81,228 in 1972.

Total amount of wages, fringe benefits and payments by the company into the employees' Railroad Retirement accounts: $1,281,188,303 in 1973, compared with $1,202,011,106 in 1972. This includes payments to employees who are involved in Amtrak passenger service, and to employees engaged in capital improve­ments, such as building a new rail connection or enlarging a freight yard.

Recent Appointments S Y S T E M O F F I C E S

Trustees M o r g a n , H . P.

R o t h , A . S h a r f m a n , N . A .

D i r e c t o r -P r o p e r t y C o o r d i n a t i o n

S t a f f A s s i s t a n t V i c e P r e s i d e n t -

R e o r g a n i z a t i o n P l a n n i n g

V i c e P r e s i d e n t - S t a f f M c L a u g h l i n , W . J . S e n i o r T A B S C o n t r o l l e r M i l l e r , T . J . S e n i o r T A B S C o n t r o l l e r O ' T o o l e , J . J . A s s t . M a n a g e r -

T A B S O p e r a t i o n s

Real Estate B o y d , E . A . S u p e r v i s o r — R e a l E s t a t e , C h i c a g o

Finance & Accoun t ing B o t t e r i l l , B . J . A s s t . B i l l i n g C e n t e r M a n a g e r ,

D e t r o i t D o u g l a s s , H. C . S u p e r v i s o r -

R o a d w a y A c c o u n t i n g E a s t w i c k , A . R . M a n a g e r — E x p e n d i t u r e A u d i t s F a r q u e r , J . E . T r a v e l i n g A u d i t o r — S e n i o r F i s h e r , G . L . S u p e r v i s o r — C a s h R e c e i p t s H a m s o n , J . P. S u p e r v i s o r — D i v i s i o n a l A u d i t s &

T r a n s i t A d j u s t m e n t s L o u g h r e y , J . A . T r a v e l i n g A u d i t o r — S e n i o r M o l l , W . C M a n a g e r — M a t e r i a l A c c o u n t i n g N i c o l l . W . D . S u p e r v i s o r — P a y r o l l A u d i t s R e s c h k e , R . A . B i l l i n g C e n t e r m a n a g e r ,

D e t r o i t V a r a l l i , E . R . A s s t . V i c e P r e s i d e n t -

B u d g e t P l a n n i n g W a d e , W . A . S u p e r v i s o r — E x p e n d i t u r e A u d i t s

Sales & Market ing A l e x a n d e r , W . E . , J r . A s s t . V i c e P r e s i d e n t -

S a l e s & M a r k e t i n g B e l l , R . M . M a n a g e r — E q u i p m e n t P l a n n i n g C a l l a g h a n , D . H . M a n a g e r -

E q u i p m e n t R e s e a r c h C h a u f o u r n i e r , R . P. A s s t . D i r e c t o r -

E q u i p m e n t & S e r v i c e P l a n n i n g D a v i s , R . L . S u p e r v i s o r — S p e c i a l

E q u i p m e n t P l a n n i n g F l o y d , V . J . A s s t . V i c e P r e s i d e n t -

I n d u s t r i a l D e v e l o p m e n t G b u r , J . E . M a r k e t A n a l y s t H u n t e r , R . L . E q u i p m e n t P l a n n i n g A n a l y s t P o f f , B . D . A s s t . M a n a g e r -

E q u i p m e n t P l a n n i n g S a n d e r s , M . S . S e n i o r T r a f f i c O f f i c e r -

A u t o m o t i v e W a d d i n g t o n , P. B . M a n a g e r -

S e r v i c e Q u a l i t y C o n t r o l W a s h b u r n , D . A . D i r e c t o r — S y s t e m

E q u i p m e n t & S e r v i c e W e f e l , E . L . S e n i o r E q u i p m e n t P l a n n i n g

A n a l y s t

Labor Relat ions & Personnel D a n i e l s , G . F . A s s t . V i c e P r e s i d e n t -

L a b o r R e l a t i o n s

R h o a d s , H . R . T r a i n i n g S u p e r v i s o r

Legal

C o r c o r a n , A . P. A t t o r n e y F o g u s , E . E . D i s t r i c t C l a i m A g e n t

S y r a c u s e , N . Y . S u m m e r s , D . J . A s s t . D i s t r i c t C l a i m A g e n t ,

S y r a c u s e , N . Y . Publ ic Af fa i r s

S c h n e i d e r , H . J . A d v e r t i s i n g M a n a g e r S t i c k l e r , N . M . S y s t e m P h o t o g r a p h e r

B e n s o n , C . F . M a n n a , O . W . M i l l e r , M . H.

P u l e o , L . D . S c h o f i e l d , A . M .

W o o d , H . L .

A b b o t t , R . C .

H a s s e l m a n , R .

J e n s e n , P. T .

M i t c h e l l , J . G . O b d y k e , K . L .

S c a t a s t i , D . E .

W i l e y , A . K .

Operat ions S e n i o r O p e r a t i o n s A n a l y s t

A d m i n i s t r a t i v e A s s i s t a n t S e n i o r O p e r a t i o n s A n a l y s t

E x e c u t i v e A s s i s t a n t S e n i o r V i c e P r e s i d e n t -

O p e r a t i o n s A s s t . t o S e n i o r V i c e P r e s i d e n t -

O p e r a t i o n s

T r a n s p o r t a t i o n A s s t . M a n a g e r —

M u l t i - L e v e l C a r s V i c e P r e s i d e n t -

T r a n s p o r t a t i o n S u p e r v i s o r —

G r a i n - C o v e r e d H o p p e r s A g e n t , A k r o n , O h i o

A s s t . M a n a g e r -A u t o P a r t s C a r s

S u p e r v i s o r — R B L C a r U t i l i z a t i o n

A s s t . M a n a g e r — O p e n C a r s

C a m p b e l l , H . C . C l a r k , J . R . G o r d o n , B . J . K a y l o r , K . J . K r i e g b a u m , C . A . O ' D w y e r , T . P. S m i t h , R . H . , J r .

H i r s t , D . L . J o h n s o n , L. A .

N e l s o n , D . L .

Engineering S e n i o r E l e c t r i c a l E n g i n e e r S y s t e m E n g i n e e r — M o f W C h i e f E n g i n e e r i n g O f f i c e r

S u p e r v i s o r — M . W . R e p o r t s S e n i o r C i v i l E n g i n e e r

C i v i l E n g i n e e r C h i e f E n g i n e e r — M o f W

Equ ipment S u p e r v i s o r — I n s p e c t i o n ( N i g h t )

G e n e r a l F o r e m a n ( F r e i g h t S h o p ) , A l t o o n a , P a .

Security A s s t . V i c e P r e s i d e n t — S e c u r i t y

C i v i s , J . A .

F e e l e y , R . E . H a w k e r , P. T . H o l l o r a n , E . J . H o c k e r , R . W . Q u a g l i a r i e l l o , A . W e s t , R . F . Y o u n g , R . N .

Operat ing Admin i s t ra t ion S u p e r v i s o r -

C o n t r a c t A d m i n i s t r a t i o n D i r e c t o r — S a f e t y

I n d u s t r i a l E n g i n e e r A d m i n i s t r a t i v e A s s i s t a n t

I n d u s t r i a l E n g i n e e r B u d g e t A n a l y s t

S e n i o r I n d u s t r i a l E n g i n e e r A s s t . D i r e c t o r — S a f e t y

M E T R O P O L I T A N R E G I O N

B l i z z a r d , D . T . M e c h a n i c a l S u p e r v i s o r , N e w Y o r k

F u l t z , A . H . G e n e r a l F o r e m a n — C a r , N e w Y o r k

N O R T H E A S T E R N R E G I O N F i e d l e r , H . J . , J r . A s s t . S h o p M a n a g e r ,

N e w H a v e n , C t . K i r n e r , R . C . R e g i o n a l M e c h a n i c a l S u p e r v i s o r -

L o c o m o t i v e , N e w H a v e n , C t . R e i h l , C . L . G e n e r a l F o r e m a n — L o c o m o t i v e ,

S e l k i r k , N . Y .

Buf fa lo Div is ion F e n e z i a n a , D . G . G e n e r a l F o r e m a n — C a r ,

B u f f a l o , N . Y . G i f f o r d , E . D . G e n e r a l F o r e m a n — C a r ,

B u f f a l o , N . Y .

M o h a w k - H u d s o n D iv i s ion B e r b e n , R . M . T r a i n m a s t e r , A l b a n y , N . Y . O ' D o n n e l l , P. F. R o a d F o r e m a n , S e l k i r k , N . Y . S e s o c k , J . A . R o a d F o r e m a n , S e l k i r k , N . Y .

E A S T E R N R E G I O N B r u n n e r , T . E . A s s t . C o o r d i n a t o r - N E C D P ,

P h i l a . B u t l e r , T . N . C o o r d i n a t o r - N E C D P ,

P h i l a .

Chesapeake Div i s ion B e a n , F . J . S u p e r v i s o r — T r a i n O p e r a t i o n ,

B a l t i m o r e , M d . C i g a n i k , J . J . S u p e r v i s o r — T r a c k ,

P e r r y v i l l e , M d . Harrisburg Div is ion

B o o t y , M . E . A s s t . G e n e r a l F o r e m a n — C a r , P h i l a .

C a r g i l l , D . S . A s s t . S u p e r v i s o r — T r a c k , P a o l i , P a .

H e i d e , W . L . A s s t . D i v i s i o n E n g i n e e r , P h i l a . J a c k s o n , R . L . A s s t . S u p e r v i s o r — T r a c k ,

E n o l a , P a . L o f t o n , J . C . A s s t . S u p e r v i s o r — T r a c k , P h i l a . P e t r u c c i , M . A . A s s t . G e n e r a l F o r e m a n — C a r ,

E n o l a , P a . S h e p h e r d , V . B . G e n e r a l F o r e m a n — C a r ,

E n o l a , P a . S t o n e , L . E . S u p e r v i s o r — T r a c k , C a m d e n , N . J . W e i s s e r , J . B . A s s t . G e n e r a l F o r e m a n -

L o c o m o t i v e , C a m d e n , N . J .

L i t t l e , H. S . G e n e r a l F o r e m a n — L o c o m o t i v e , C o n w a y , P a .

M a l o v i c h , R . F . A c t i n g G e n e r a l F o r e m a n -L o c o m o t i v e , C o n w a y , P a .

P e t t , J . K . G e n e r a l F o r e m a n Q u a l i t y C o n t r o l -L o c o m o t i v e , C o n w a y , Pa

Al legheny Div is ion C o n l e y , R . H . R o a d F o r e m a n , A l t o o n a , P a . H o w e l l , C . G . A s s t . S u p e r v i s o r — T r a c k ,

L e w i s t o w n , P a . K e r r , R . A . S u p e r v i s o r — T r a c k , C r e s s o n , Pa. L u t z , C . D . R o a d F o r e m a n , A l t o o n a , P a .

Pittsburgh Div i s ion C a l d e r o n e , C . J . A s s t . G e n e r a l F o r e m a n — C a r ,

M i n g o J e t . , O h i o D a i l e y , H . H . S u p e r v i s o r — T r a c k , C o n w a y , P a . G i l e s , A . H . A s s t . G e n e r a l F o r e m a n — C a r ,

C o n w a y , P a .

Va l ley D iv i s ion K o l s k y , T . A . , J r .

L i t t l e , G . E . O ' C o n n e l l , T . A . W h i t s e l , E . W .

A c t i n g G e n e r a l F o r e m a n , Y o u n g s t o w n , O h i o

T r a i n m a s t e r , W h e a t l a n d , P a . T r a i n m a s t e r , G o o d m a n , O h i o R o a d F o r e m a n , C a n t o n , O h i o

N e w Jersey Div is ion

Yards & Terminals T h o m e , J . S . S u p e r v i s o r — A u t o m o b i l e T e r m i n a l ,

W e s t b o r o , M a s s .

C a r l o n i , T . E .

F l y n n , W . J . , J r .

F r a s h e r , E . P.

Passenger P l a n n i n g E n g i n e e r -

I n t e r c i t y P a s s e n g e r S u p e r v i s o r -

B u d g e t & S t a t i s t i c s A s s t . V i c e P r e s i d e n t -

P a s s e n g e r

C a s e y , J .

G r a y , R . W.

K i m b a l l , W. E .

P a s t o r , V . P.

T i r e l l i , A . A .

A s s t . G e n e r a l F o r e m a n — C a r , K e a r n y , N . J .

A s s t . S u p e r v i s o r — C & S , K i n g s t o n , N . Y .

G e n e r a l F o r e m a n — C a r , K e a r n y , N . J .

A s s t . G e n e r a l F o r e m a n — C a r , S u n n y s i d e , N . Y .

A s s t . G e n e r a l F o r e m a n — C a r , S u n n y s i d e , N Y .

C E N T R A L R E G I O N C o n t e , P. C . R e g i o n a l M e c h a n i c a l S u p e r v i s o r -

L o c o m o t i v e , P i t t s b u r g h , P a .

N O R T H E R N R E G I O N

Detroit D iv i s ion C a r p e n t i e r , R . L . A s s t . G e n e r a l F o r e m a n — C a r ,

D e t r o i t

Mich igan Div i s ion W o r t h i n g t o n , W . M . D i v i s i o n E n g i n e e r ,

J a c k s o n , M i c h .

W E S T E R N R E G I O N

Ch icago D iv i s ion W h i t e , J . A s s t . S u p e r v i s o r — T r a c k , E l k h a r t , I n d .

Cleveland Div i s ion H a l e , N . A . G e n e r a l F o r e m a n , E r i e , P a . H u n t , R . A . A s s t . D i v i s i o n E n g i n e e r ,

C l e v e l a n d , O h i o L o w m a n , J . D . R o a d F o r e m a n ,

C o l l i n w o o d , O h i o S c h r u m , E . J . G e n e r a l F o r e m a n — C a r ,

R o c k p o r t , O h i o W i s n i e w s k i , R . J . A s s t . G e n e r a l F o r e m a n — C a r ,

C o l l i n w o o d , O h i o

To ledo Div is ion E n g e l e i n , W . L . S u p e r v i s o r — C r e w A s s i g n m e n t s ,

T o l e d o , O h i o W i n d i s c h , G . E . M a t e r i a l & E q u i p m e n t

E n g i n e e r , T o l e d o , O h i o

S O U T H E R N R E G I O N

Cincinnat i D iv i s ion

P h i l l i p s , W . A . E x a m i n e r , C i n c i n n a t i , O h i o

C o l u m b u s D iv i s ion H a m r i c k , R . D . M a t e r i a l & E q u i p m e n t

E n g i n e e r , C o l u m b u s , O h i o

Southwest D iv i s ion G a r z o l i n i , A . F . O f f i c e E n g i n e e r ,

I n d i a n a p o l i s , I n d .

4

PC People Welcome Newest Neighbors

Many industries searching for favorable locations to build new

plants continue to find what they're looking for in Penn Central territory.

The year 1973 saw a total of 412 new or expanded plants taking shape along PC rail lines.

"These plants represent a total investment by these industries of more than half a billion dollars," reported Vincent J. Floyd, recently appointed assistant vice president-industrial development.

"For the communities involved, this industrial development means about 15,000 new jobs.

"For Penn Central, it means an estimated $42 million in additional annual revenues from carload and piggyback traffic when these plants reach full production."

The number of new plant loca­tions by States are as follows:

Ohio, 6 3 ; Indiana, 6 1 ; Pennsyl­vania, 60; Michigan, 49; New York, 36; Massachusetts, 33 ; New Jersey, 29; Illinois, 28; Maryland, 2 1 ; Con­necticut, 13 ; Delaware, 7; District of Columbia, 4; Rhode Island, 3; West Virginia, 3; and Kentucky, 2.

During the past five years, PC's Industrial Development staff has helped 2,430 industries find new plant sites, expand existing plants or arrange for temporary production

Grocery manufacturers ship their products to Dauphin Distribution Services, which consolidates them for delivery to stores. A t the firm's new service center in Camp Hill, Pa., PC Conductor James Rogers (center) meets J . K . Adams, Dauphin's President, and C.R. Watts, the Manager.

locations served by Penn Central. Penn Central territory includes

half the nation's population, 12 of the 20 largest metropolitan areas, 55 per cent of the nation's manufactur­ing plants, and 60 per cent of the manufacturing employees.

PC's Industrial Development of­fices, located in 11 key cities, main­tain a current inventory of available acreage, including data on more than 300 modern industrial parks. The offices are equipped to provide prompt and detailed information on soil conditions, utilities, municipal services, zoning, labor supply, taxes, and many other elements involved

A n inspector checks bottles manufactured in the new plant of Foster-Forbes Glass C o m ­pany, served by Penn Central at Milford, Mass. Observing the operation are Jack Kethro, PC manager of industrial development, and James A . Norgaard, manager of plant en­gineering. This division of National Can produces Vh billion containers a year.

New plant of Inmont Corporation rises on the PC at Greenville, O . It will produce resins for can coatings, ink products and automotive and industrial finishes. Inmont is world's largest producer of printing inks and one of the t w o largest producers of auto­motive finishes. These and other products account for over $355 million in sales.

Newest flour mill of International Multifoods is on operation on the PC at Columbus, O. Adjacent are concrete elevators and steel bins operated by Eshelman Grain Division. T h e elevators, with 1,200,000 bushel capacity, supply the flour mill, and merchandise grain.

in establishing a profitable opera­tion.

"We're ready to do an in-depth distribution study, to help the in­dustry minimize material handling problems and reduce the time it takes to get its product to market ," Mr. Floyd added.

"We'll assist in the preparation of engineering layout and design.

"We'll accompany the industry's officials in on-site inspections, in­troduce them to municipal and fi­nancial leaders, and guide them in

meeting environmental protection regulations.

"We can even serve as inter­mediary to option a property on behalf of a customer who prefers not to be identified in the early stages of negotiations."

O N T H E C O V E R : Conductor James Rogers, Brakeman Emil Kan-y u k and Engineer C.E. Urich pick up cars at Dauphin Distribution Ser­vices' new Center at Camp Hill, Pa.

19 • M I C H I G A N • 74

P C R W Y P E R S O N A L I Z E D

T h e Delco-Remy Division of General Motors Corporation will manufacture automobile parts in this huge plant erected along the Penn Central last year at Anderson, Indiana.

Charles R. Foss is tickled with his new Michigan license plate. He doesn't think a n y b o d y in any State has one like it.

Mr. Foss, a PC block operator, currently works at Fuller Block Station in Grand Rapids, Mich.

This is the first year his State has offered personalized license plates, he explains. Y o u can choose up to six letters or numerals. T h e cost is $25, added to the regular license fee.

Once y o u r request is granted, it's exclusive — n o b o d y else can get the same one. But y o u have to keep

renewing it if y o u want to keep it. A n applicant for a personalized

tag can list second and third choices, in case his first choice has already been spoken for. Mr. Foss's second choice was F W J S , standing for F o r t Wayne, Jackson & Saginaw, a railroad that became part of the N e w Y o r k Central. His third choice was P R R N Y C .

He was delighted w h e n his first choice went through. It says its message proud and clear. Here's one license tag you'd never have trouble remembering.

5

What's Happening in Safety?

We've got some good news and some bad news.

First, the bad news: The PC System record of em­

ployee safety on the job — which had improved in 1972 — slipped in 1973. The number of injuries to employees, for every million man-hours of work, was 8.58 in 1973, compared with 7.90 the year before.

Now the good news: Twelve of Penn Central's 19

Divisions improved their safety records during 1973. Two others had only a negligible slippage in their records.

It was the remaining five Divisions, with substantial in­crease in on-the-job injuries, that spoiled the overall System re­cord.

To continue with the good news:

Allegheny Division, which led all the rest in safety during 1972, repeated in 1973. It im­proved its own safety perfor­mance by 28 percent over the 1972 figure.

Canada Division, in second place, showed a 33 percent im­provement.

R.E. Feeley, director-safety, displays some weapons in the war against personal injuries: Safety spectacles, goggles, hard hat, welder's helmet, gloves for chemicals, safety manuals.

the percentage of improvement over their own 1972 records:

Columbus . . . 29 percent Pittsburgh . . . 8 percent Cleveland . . . 48 percent Toledo 3 percent Valley 6 percent New England . . 20 percent Chicago 3 percent Fort Wayne . . . 11 percent Michigan . . . 10 percent The Divisions that did worse

in 1973 than in 1972 were: Southwest, Harrisburg, Buffalo, Mohawk-Hudson, New Jersey, Chesapeake and Detroit.

Among the seven operating Regions, the Southern Region, with headquarters at Indiana­polis, had the best safety record for the fourth year in a row.

Now, what's the program for

Cincinnati Division scored third in the safety standings, with a 28 percent improvement over 1972.

The other Divisions that up­graded their safety performance in 1973 are listed below, with

1974? "We are going to zero in on

the most common types of on-the-job accidents and do every­thing we possibly can to reduce them," said Robert E. Feeley, recently appointed director of safety.

"We will pu t the spotlight on safe work practices as spelled out in the Penn Central Safety Rules.

"We are counting on Penn Central people to put every effort into this safety program, for the benefit of all of us and the strengthening of our rail­road."

P e n s i o n P a y m e n t s G o U p A recent Act of Congress has

raised Social Security bene­fits 11 percent. The law pro­vides that the dollar amount of the increase be passed on to persons receiving Railroad Re­tirement pensions just as if they were under Social Security.

This means that if a Railroad Retirement pensioner is receiv­ing $300 a month but would have been receiving $200 a month if he were under Social Security, he will receive an in­crease of 11 percent of $200, or $22 per month.

The increase will go into effect in two stages: 7 percent in March, payable on April 1; and 4 percent in June, payable on July 1. The Railroad Retire­ment Board says it may not be able to process the increases for all beneficiaries by those dates, but any later payments will be retroactive, so no benefits will be lost.

Widows and children receiving survivor benefits under Railroad Retirement will receive increas­ed payments. For most of these, the increase will be a full 11 percent of their Railroad Re­tirement benefits.

Railroad pensioners who also

receive Social Security benefits, because of employment at some time in non-railroad industries, are entitled to receive increases in both their Railroad Retire­ment and Social Security checks.

Supplemental annuities under Railroad Retirement will not be increased under the new legis­lation.

Meanwhile . . . The basic Medicare premium

is being increased from $6.30 to $6.70 per month, effective July 1.

The tax base for Railroad Re­tirement taxes was increased, effective January 1. Employees now pay 5.85 percent, and the railroad companies pay 15.35 percent, on each month's earn­ings up to $1100, instead of the previous limit of $900.

A cold night in January T h e sun was setting on a brilliant

January day. T h e air was crisp, tingly. T h e snow-clad hills, threaded with hunters' trails, looked inviting.

"Let's hike to Ansonia!" some­body cried.

It sounded like a fine idea. T h e six youngsters, aged 11 to 16,

started out through the hills f r o m Tioga, Pa., near the Pennsylvania-N e w Y o r k border. Ansonia was about 15 miles away b y woodland trail. T h e y weren't dressed very w a r m l y : sneakers, light jackets.

But they still felt warmed b y the sun's last rays.

Six hours later, they were limping on numbed feet through blindingly dark woods. T h e temperature had dropped almost to zero. Several were suffering lung congestion. Fingers felt stiff as stone.

T h e y couldn't f ind a highway. But stumbling d o w n a hillside, they found the Penn Central tracks. There they stayed, huddled together, hop­ing.

Shortly after 1 A . M . , a locomotive headlight picked them out beside the tracks, desperately waving.

Engineer E. D. Haney, out of Corning, N. Y . , brought his freight train to a stop. Conductor H. W.

Lewis and Brakeman Rocco Pierri helped the youngsters up into the locomotive while engineer Haney radioed word to the nearest block station.

When the train reached Tioga J u n c t i o n , an ambulance was already on hand. T h e youngsters were taken to Soldiers and Sailors Memorial Hospital at Wellsboro, Pa., where they were placed in emergency care to save fingers and toes.

After hospital stays ranging f r o m 3 to 7 days, the youngsters were able to go home.

"If they hadn't been picked up when they were, the outcome could have been grim," a hospital official said.

Kenneth L. L o w e , superintendent of the Allegheny Division, wrote to the PC crewmen: "Congratulations for a j o b well done!"

6

OPEN LINE: CANADIAN CUSTOMS: Arrangements have been made to provide the necessary customs procedures for shipments going from the United States to PC's Valley field (Canada) piggyback terminal serving the Montreal area. This facilitates the importation of goods from the U. S. in piggyback trailers or containers, either for customs clearance at the terminal or for forwarding to other Canadian cities or to Canadian seaports for overseas shipment.

Penn Central has been hauling freight to the U. S. from Valley field since August, when this terminal became the railroad's second Canadian center for its expanding piggyback freight ser­vice. The other is at Montrose, Ontario, in the Niagara Falls area.

The Valleyfield terminal is served by daily trains to PC's major classification yard near Syracuse, N. Y., where connections are made with trains to and from the West, the Atlantic Seaboard and the South.

HIGH COST OF FUEL: The price of diesel fuel went up 53 percent between October, 1973, and January, 1974, the Association of Ameri­can Railroads has reported. This increase is ex­pected to cost the railroads $307 million on an annual basis, or 2.1 percent of their total revenue, the AAR said. To meet this added cost, the Interstate Commerce Commission granted the railroads a 2.1 percent increase in freight rates, effective January 31 .

CHARGES FOR PERISHABLES: The railroads have been given authority to file increases in their charges for protective services to frozen goods by 10 percent, and for non-frozen perish­ables by 30 percent. In granting this permission, the Interstate Commerce Commission noted that the railroads will propose permanent changes in the charges after completing a de­tailed cost study. The charges are for the costs of protecting perishable commodities against damage from heat or cold in transit.

TRAINS DO IT BETTER: Dr. Barry Com­moner, an environmental expert, points out in Harper's Magazine that the average train car­ries "about 1,800 tons of freight as compared to about 12 tons for the average truck. Per mile of freight carried, trucks use four to six times as much fuel as the railroads, and produce about that much more pollution. Although railroads could handle two or three times their present freight traffic without clogging up, most truck-bearing highways operate close to ca­pacity."

CAR FERRY TO FLORIDA: Amtrak is re­ported to be moving ahead on plans to start carrying motorists, plus their autos, on a

special train operating between the Midwest and Florida. Tentative plans provide for a northern terminal at Indianapolis and a south­ern terminal not far from Disney World.

Similar service being provided by the private­ly operated Auto-Trains between Lorton, Va. (near Washington) and Sanford, Fla., has been doing sell-out business.

NEW CARS FOR CORRIDOR: The Budd Com­pany is building 57 Metroliner-type cars with improved ride characteristics under a contract with Amtrak. Delivery is expected to begin about the end of the year. The new cars will make it possible to increase Metroliner-type service almost 100 percent in the Northeast Corridor between New York and Washington and to extend such service to Boston.

LONG-RANGE AID: The Nixon Administra­tion is sponsoring a proposed new law to strengthen the railroad industry nationwide. Named the "Transportation Improvement Act of 1974," it includes the following proposals:

The Government would guarantee loans up to a total of $2 billion, which the railroads would obtain from private sources, to modern­ize tracks, terminals and rolling stock.

The railroads would be given more leeway in freight rates; for example, they would be free to reduce rates to meet competition, so long as the rates were not below the cost of providing the service.

States and local communities would not be permitted to tax railroads at higher rates than other taxpayers. At present, the railroads are paying about $55 million a year in excessive taxes.

Federal, State and local governments, which now can ship freight at special low rates negotiated with the railroads, would have to pay the same rates as other shippers.

Railroads would be given more freedom to discontinue service on lines that don ' t meet operating costs. However, State and local gov­ernments or other interested parties could keep service going by paying a subsidy to the rail­road.

The Government would grant $35 million to help set up a nationwide system for scheduling and controlling freight car movements to im­prove utilization.

Claude S. Brinegar, U. S. Secretary of Trans­portation, noted that while the American rail­roads' operating revenues last year rose to more than $13 billion, their net earnings were "dis-couragingly low," with only a 3 percent return on their investment.

"The key objective of this legislation," he said, "is to take preventive action now to avoid a later replay of the Penn Central problem on a national scale."

Cafe Cars for Commuters

Coffee, juices and Danish pastry in the morning.

Cocktails, beer and soft drinks in the evening.

It's a menu precisely tailored for com­

muters, and it's available on two new cafe cars that went into service last month on the line between New Haven, Conn., and Grand Central Terminal, New York.

The cars, which cost $436,000 each, can accommodate 180 passengers, including standees at the 30-foot bar. There are lounge sections with upholstered seats at each end, and wood-grain paneled walls decorated with old-time railroad scenes.

In the photo, Bar Attendant Eugene Dowling demonstrates his technique.

A total of 20 cafe cars are expected to be in service this spring. They're included in a fleet of 144 new Cosmopolitan cars ordered by the Connecticut Department of Trans­portation and New York's Metropolitan Transportation Authority from General Elec­tric Company.

The Cosmopolitan cars are part of a $100 million modernization program sponsored by the two State agencies with the help of Federal Funds.

COMMENT Jervis Langdon, Jr., sent a letter to Penn

Central shippers, affirming Penn Central's dedication to good service. Some excerpts:

"I wish to assure you personally that all of us at Perm Central intend to maintain the highest possible standards of service in the months ahead.

" I t is obviously too early to assess the precise effect of the recently enacted Re­gional Rail Reorganization Act of 1973 on Penn Central. But while the planning pro­cedures of the law evolve, we shall not relax in any way our emphasis on satisfactory performance. If anything, we shall increase that emphasis . . .

" In the immediate future, I hope that Paul Funkhouser (senior vice president-sales and marketing) and I can meet personally with groups of shippers for frank and open discussions of your service requirements.

"We are exploring means to step up car repairs, acquire more new cars, and bring our right-of-way up to higher standards . . .

"The goal of our entire organization is to upgrade the performance and condition of our railroad."

Rear Admiral J. L. Coleman, commandant of the Fourth Naval District, writes:

"The 1973 Army-Navy game, with its favorable score, presented one of the great football rivalries in the entire nation. From the transportation standpoint, Penn Central Railroad significantly contributed to the success of the game, and I would like to convey my personal appreciation and grati­tude to those members of your organization who made and executed the arrangements in a commendable professional manner. "

(Editor's Note: Special trains were oper­ated, as in years past, from Washington, New York, Trenton, N. J., and Paoli, Pa., directly to the stadium in South Philadelphia.)

George Stoffel, of Wellsville, Ohio, block operator on PC's Valley Division, writes:

"I've worked on the Penn Central for six years, and have read the Penn Central Post for these six years. All I see in the Post is what a great job that the clerks, trainmasters, conductors, supervisors, etc., are doing.

"But what about the Block Operators? "We are the people that put the trains on

other tracks when there's trouble ahead to save a delay. We check trains for hot boxes, open doors, and other defects. If it wasn't for the Block Operators, these other people wouldn't be so great.

"So remember the Block Operator works here, too."

Robert L. Kunes, director of public in­formation of the Southeastern Pennsylvania chapter, American Heart Association, wrote to commend a recent Penn Central Post art­icle on emergency action in case of heart attack.

"We are extremely grateful for the tre­mendous support you have given to our cause," he said. "You may very well be help­ing to prevent premature death and disability among some of your employees who read this article."

7

PENN CENTRAL

POST 6 PENN CENTER PLAZA PHILADELPHIA, PA. 19104

(Advertisement)

1974

105 YEARS OF TIMELY PROTECTION ROUND-THE-CLOCK BY P.C.M.A.

As we start our 106th year, we pay just tribute to our founders whose vision and concern for the welfare of railroad employees and their families gave birth to this Association. We are proud of our long history and the fact that we have paid more than $138,000,000.00 in benefits to the thousands of Members and Certificate-holders covered by the Association's accident and health protection. Now, we have four supplemental plans for a wide range of coverage for PENN CENTRAL employees and their families: