In a number of instances the Erie and the Lackawanna operate freight train service between the same major terminals or terminals serving the same area, and, in many cases, the schedules are fixed and the trains are operated whether or not full tonnage is available. In the event of merger, the total tonnage handled by the two roads separately would, in many instances, permit the operation of fewer but heavier trains on present schedules. Minimizing the operation of light trains would result in an estimated saving of $685,349 annually.
The trains operated by the two roads in duplicate freight train service were analyzed in detail for the test weeks of January 8-14, April 8-14, July 15-21, and October 14-20, 1956, to determine the number of trains run, the tonnage handled, and the locomotive units required to handle them. The number of trains and locomotive units which would have been required under merged operation were then determined, based on thesame service requirements and maintaining the same time schedules as are now being operated. The savings to be expected as a result of merger were determined by comparing the two operations, and the results of the four test weeks were projected to an annual basis. The duplicate service which was analyzed on the Erie and Lackawanna and the estimated savings are summarized in Schedule Aattached.
Schedule A
Duplicate Freight Train Service
Summary of Savings on Erie and Lackawanna
E S T I M A T E D A N N U A L S A V I N G S
Diesel
Round Actual Train Unit Crew
Trips Round Miles No of Miles Wages Crew
Elimi- Trip Elimi- Diesel Elimi- Per Wage
District nated Mileage nated Units- nated mile (1) Saving
-----------------------------------------------------------------------------------------------
Hoboken or 546 376 205,296 3 615,888 $0.8670(2) $123,078
Croxton- 1.0238(3) 64,845
Binghamton
Binghamton- 273 404 110,292 3 330,876 1.0238 112,917
Buffalo
Hornell- 273 180 49,140 4 196,560 1.0432 56,959(4)
Buffalo
Scranton-
Binghamton
Avoca-
Susquehama 364 124 45,136 4 180,544 0.8864 64,530(4)
Totals 1,456 1,084 409,864 14 1,323,868 $422,329
(1) Crew wages based on less than 80 cars.
(2) Crew wages for five-man crew east of Scranton.
(3) Crew wages for six-man crew west of Scranton.
(4) Crew compensated for basic day in each direction.
Recapitulation - Estimated Annual Savings
Crew wages.................................. $422,329
Payroll taxes.............................. 47,639
Total............................... $469,968
Diesel Unit Miles Eliminated ....... 1,323,868
Locomotive repair costs at 14.810 per unit mile .... 196,065
Payroll taxes ...................................... 19,316
Total ................................... $215,381
Estimated Total Savings .................. $685,349
