The purpose of this study was to estimate the effect of merger on expenses at locations other then the common points and duplicate lines included in Studies I and II. These effects are caused primarily by changes in volume of traffic resulting from rerouting.
In making this study the volume of traffic within the study area during the base year 1956 was determined for each density district from traffic density charts prepared by the study lines. This was compared with the volume to be handled after merger as shown on traffic chart of merged operation, Map No. XV-A. All lines where changes were considered great enough to affect maintenance practices and physical facilities were studied. The total result of the study is an amount of $2,582,068 in net cash realized and an annual saving of $1,457,674 which is detailed in the four following sections and summarized in Schedule A.
As a result of rerouting or conclusions reached in other studies use of the Erie Hornell yard would be greatly increased resulting in increased expense. The Erie Susquehanna yard would be completely eliminated and additional saving would also result at Scranton and Port Morris as explained below.
Hornell now serves as a main yard for classification of traffic to and from Buffalo and the east. As a result of the decision to use the Erie line between,Buffalo:and Coming as the main freight route for all Buffalo traffic, Hornell yard would serve as the main yard for combining Buffalo traffic with traffic to and from the east. However, certain trains in both directions previously classified at Buffalo or other locations would operate through Hornell on a "main tracker" basis.
In order to handle the increased volume of traffic, the eastbound fast freight yard would be expanded from seven tracks to eighteen tracks with the longest track having a capacity of 162 cars and the north and south ice house leads would be lengthened to a capacity of about 155 cars each. Expansion of the eastbound fast freight yard would in turn require some modification of the present eastbound classification yard. This yard would be reduced from 18 to 13 tracks and the present rider hump would be eliminated. The net cash required for the above changes is estimated at $816,773.
The Lackawanna LCL transfer operations now at Scranton would be transferred to Hornell and as a result of the above changes, 32 switch engine shifts per week, 10 yard force positions, 38 car inspectors and repairers would be added resulting in additional annual expense of $329,897 and two additional yard diesel locomotives would be required. The estimated net annual expense from all sources is $423,733.
The Erie Susquehanna yard about 17 miles east of East Binghamton is a minor yard and is also a crew change point for freight crews. Under merger all work now performed at Susquehanna would be transferred to East Binghamton yard and the passenger car repair facility would be abandoned as proposed in Study VIII-P.
As a result of the above changes, 28 switch engine tricks per week, 10 yard force positions, 19 enginehouse positions and 45 car inspectors and repairers would be eliminated. In addition to abandonments of the passenger car shop as proposed in Study VIII-PL the entire yard would be abandoned resulting in net cash realized of $418,765 and release of one diesel road, switcher locomotive. The estimated net annual saving from all sources is $679,410.
In addition to the savings included in Study I, additional operating expense would be eliminated as a result of the conclusions reached in other studies subsequent to the common point study. The present Lackawanna LCL transfer operation would be moved to Hornell as proposed in Study VI and the present Lackawanna General Stores would be reduced to a District' Store as proposed in Study IX. Both of these changes would reduce switching requirements 11 shifts per week resulting in estimated annual saving of $70,492.
As a result of conclusions reached in Study V the decrease in volume of interchange with the Lehigh and Hudson River Railway would result in elimination of 13 car department positions at an estimated annual saving of $67,9556
Based on conclusions reached in Studies IV and XXI, the Erie line between Corning and East Buffalo would be used by all through freight trains and passenger trains in both directions, and the Lackawanna line would be used for local freight service only.
The Lackawanna line at present is double track equipped with automatic block signaling, and under merger this line would handle an average of me local freight train in each direction daily except Sunday. This line would be reduced to non-signaled single track between Erwins and Lancaster resulting in the abandonment of approximately 114 miles of second main track. This line would also be reduced to single track between Lancaster and Depew and the results are included in Study I.
The Erie line is now single track between East Buffalo and River Jct. equipped with traffic control and double track between River Jct. and Coming equipped with automatic block signaling. Under merger that portion of the line between Depew and Portage would be equipped with CTC. Passing sidings at Silver Springs, Linden and Alden would be extended a total of about 11.4 miles to provide several segments of double track to handle the estimated increase in volume of traffic.
Net cash realized from abandonments of the Lackawanna line is $3,292,299 which would be reduced by $1,051,819 for additions to the Erie line or a net of $2,240,480. The estimated annual saving from abandonments of Lackawanna trackage is $906,184 offset to some extent by increased annual expense of $111,096 for the Erie line or a net of $795,088.
Also based on conclusions reached in Studies IV and XXI, the Lackawanna line east of Scranton would be primarily a passenger line under merger, and the total volume of traffic would be reduced about 50%.
It is our understanding the Lackawanna will reduce the present double track to single track prior to merger between Paterson and Montville and between Port Morris and Stroudsburg.
At present the Lackawanna line between Stroudsburg and Scranton is either double or multiple track, and under merger this line would be reduced to single track equipped with CTC between Stroudsburg and Elmhurst except for about seven miles of double track between Pocono Summit and Gouldsboro which would be retained, resulting in abandonment of about 49.6 miles of main track.
Total net cash realized is $409,057 and the estimated annual savings are $263,124.
At present the Lackawanna line between Scranton and Hallstead is either multiple track or double track and based upon the conclusions reached in Studies IV and XXI the total volume would be reduced about 33%. We believe the anticipated volume of traffic would not warrant retention of the present trackage and this line would be reduced from three tracks to double track between Cayuga and Dalton and from double track to single track between Dalton and Hallstead resulting in elimination of about 38.3 miles of second main track.
Total net cash realized is $334,447 and the estimated annual savings are $212,918.
At present the Lackawanna main line is equipped with continuous cab signal equipment between Scranton and Buffalo, and the Erie main lines between Homell and Port Jervis are equipped with Automatic Train Stop equipment in compliance with ICC requirements.
Under coordination between Binghamton and Gibson prior to merger it is proposed to equip 93 Lackawanna diesel units with Automatic Train Stop in addition to the present cab signal equipment.
Under merger, however, we believe the merged company would adopt ATS as a standard providing ICC approval can be secured. Present Lackawanna cab signal equipment would be retired and ATS wayside equipment would be installed between Scranton and Binghamton. Related equipment would also be provided on 21 additional diesel units.
The net cash cost is $3,908 and the estimated additional annual saving is $9,609.
A study of the variation of maintenance costs with use was made wherever the net increase or decrease in traffic over a line would exceed 500,000 gross tons per year. This would result in a net increase in costs of $217,189.
Note - some errors were discovered while recreating this chart. This number shown are from the report and NOT changed.
Stroudsburg- ATS Portage- Lancaster- Port Scranton- Net Normal
Susquehanna Hornell Scranton (DL&W) Depew Corning Scranton Morris Hallstead Maintenance Total
A. Net Cash Realized From Merger
1 Salvage from Property Retired $185,199 G $ 34,482 L $1,185,145 G $ 94,459 G $ 2,138 G $2,673,313 G --- --- $809,556 G --- $4,913,328 G
2. Property Acquired --- 515,092 L 898,798 L 157,945 L 1,048,887 L 27,214 L --- --- 717,632 L --- 3,365,568 L
3. Cost of Relocating Property --- 606,134 L 26,241 L --- 36,465 L 131,885 L --- --- 15,121 L --- 815,844 L
4. Non-Recurring Income Tax
Saving 233,566 G 338,935 G 150,951 G 59,576 G 31,395 G 778,083 G --- --- 257,644 G --- 1,850,152 G
5. Total Net Cah Realized
From Merger $418,765 G $816,775 L $ 409,057 G $ 3,908 L $1,051,819 L $ 3,292,299 G --- --- $334,447 G --- $2,582,068 G
B. Expenses
Maintnance of Way & Structures
1. Normalized Maintenance $ 25,077 $ 7,567 L $ 215,613 $ 6,925 42,470 L $ 610,075 --- --- $180,855 $ 198,810 L $ 789,698
2. Depreciation 11,196 2,178 L 7,125 1,950 12,109 L 75,094 --- --- 1,379 L --- 79,679
3. Total Maintenance of Way
Structures $ 36,275 $ 9,745 L $ 222,758 $ 8,855 $ 54,579 L $ 685,169 --- --- $179,476 $ 198,810 L $ 869,377
Other Expenses 0 L
4. Station $ 431 L $ --- --- --- --- --- --- --- --- --- 431 L
5. Yard Switching 163,680 186,628 L --- --- --- --- 64,802 --- --- --- 22,948 L
6. Yard Transportation Forces 71,545 64,416 L --- --- --- --- --- --- --- --- 61,593
7. Enginehouse 101,549 --- --- --- --- --- --- --- --- --- 110,885
8. Car Repair and Inspection
Forces 206,130 78,853 L --- --- --- --- --- 58,371 --- --- 185,648 ---
9. Miscellaneous --- --- --- --- --- --- --- --- --- --- ---
10. Total Other Expenses $542,471 $329,897 --- --- --- --- $ 63,802 $ 58,371 --- --- $ 334,747
11. Total Expenses Saved $578,744 $339,642 L $ 222,738 $ 8,855 $ 54,579 L $ 685,169 $ 63,802 $ 58,371 $179,476 $ 198,810 L $1,204,124
C. Railway Tax Accruals
1. Payroll Taxes $ 79,728 $ 43,252 L $ 19,933 $ 949 $ 3,926 L $ 56,400 $ 6,690 $ 9,584 $ 16,720 $ 18,379 L $ 124,447
$
D. Total Savings, Revenues and
Expenses $658,472 $382,894 L $ 242,671 $ 9,804 $ 58,505 L $ 741,569 $ 70,492 $ 67,955 $196,196 $ 217,189 L $1,328,571
E. Interest at 5% on Net Cash
Realized From Merger $ 20,938 $ 40,839 L $ 20,453 $ 195 L $ 52,591 L $ 164,615 --- --- $ 16,722 --- $ 129,103
F. Total Estimated Net Savings
From Merger $679,410 $423,735 L $ 263,124 $ 9,609 $ 111,096 L $ 906,184 $ 70,492 $ 67,955 $212,916 $ 217,189 L $1,457,674
G. Total Number Positions Abolished 74 48 I - - - - - 13 - - 39
H. Switch Engine Tricks Eliminated -
Per Week 28 32 I - - - - - - - - 4 I
I. Diesel Locomotives Released
1. Yard - 2 I - - - - - - - - 2 I
2. Road 1 - - - - - - - - - 1
G - Gain
L - Loss
I - Increase
