1 < 6 INTERSTATE COMMERCE COMMISSION REPORTS NORTHERN PACIFIC RY. CO. DISCONTINUANCE OF TRAINS 7

APPENDIXC FINANCE DOCKET NO. 25718 Pellll Celltral Comptllly

1966 1967 1968 (First8 month.) COMPANY DISCONTINUANCE 1969 OF TRAINS NOS. 1 AND 2 BETWEEN ST. PAUL, MINN., AND -TA.COMA, WASH. Capital cxpendilurn: Road ...... S76,933.000. S83,428.000. S86. 83 '1.000. S3I.OOO.OOO. Equipment ...... 184,243.000. 100,362.000. 104.361.000. 30.000,000. Tot.1 capital txJlCDditure•.. 261.176.000. 183,790.000. 191,200.000. 81.000,000. Decided November 7, 1969 M.turitie ...... 73,800,000. 76,IlOO,000. 113.!lOO.000. '6,200,000, Total c.pital .xpendltures -- • nd maturitie...... 334,976,000. UlO.'90.000. 3Q.5,IOO,OOO. 137,200,000. FlnaneiJ1&' Upon investigation, 'found that the continuance of operati on by the North­ Equipmenl lru.t ...... 44,010.000. 21,673,000. ern Pacific Railway Company of service by its pa.sse~ger trains Nos. 1 Condilional aale .pnrnent .... 102,6'1,000. '8,837 ,000. 74.270,000. 31.000.000. Stock o"'lon ...... 2,237.000. 2.974.000. 1.418.000. 67!,OOO. and 2 between Si.. Pa.ul, Minn.• and Seattle-Tacoma, Wash., is required by Revolvina credil ._m.nt ...... 100.000.000. 1'0,000.000. the public convenience and necessi ty and continued 0 peration will not Eurodol .... loan...... 30.000.000...... Commercial paper ...... :...... 100,000.000. 30,000,000. unduly burden interstate or foreign commerce. Operation ordered con­ Ol.. r ...... 2.312,000. 1,936,000. 31,!lOO,OOO. 2.962.000. tinued for a period of 1 year from the date hereof. Investigation dis­ continued. To(al ftnanc:I...... 1'1,212.000. 83,442,000. 337.'88.000. 234.633,000. axec. or .xpenditure. OV.r ftnanc:l .. (cumulaliv.) ...... 183,764,000. 338,912,000. 306.424,000. 208,720,000. Reginald Am~s and Frank S. Farrell appearing for carrier. Norton M. HatUe appearing for Pu blic Service Commis­ 336 I.C.C. sion. Daniel E. BlLchanan, Ben J, Wolf, and John M. .tgrey appearing for Public Service Commission, protestant. William E. O'Leary, John C. Sheehy, and George Tilton appearing for Boa.rd of Railroad Commissioners, protestant. Patrick McEligot appearing for Utilities and Trans­ portation Commlssion, protestant. Bernard Rane and Mark Goldstein appearing for city of , . protestant. Arvid M. Fallc appearing for city of Minneapolis, protestant. Daniel A. Kla.s appearing for city of St. Paul, protestant. Richard P. Gallagher appearing for city of Malldan, and North Dakota Joint Legislative P-oard of Railroad Broth€rhood, protes­ tants. Don Kennedy appearing for city of Staples, Minn., and Staples Chamber of Commerce, protestants. Luther P. Nervig appearing for town of Wadena, Minn., and Wadena Chamber of Commerce, protestants. John Kukowske, Jr., appearing for town of Perham, Minn., protes­ tant. Russell G. Nerison appearing for city of Jamestown, N. Dak., protes tanto ;136 I.C.C. 16 INTERSTATE COMMERCE COMMISSION REPORTS NOTHERN PACIFIC RY. CO. DISCONTINUANCE OF TRAI:-lS 17

PMor '0 A1I·D'U'" 18. 1988 A"t!r AugWl 18,1968 \ Burungton; Bellingham and such CanadIan points as Colebrook,

TRAIN NO. J (WESTSOUND) .~W' "Westmlnster and Vancouver, all In British Columbia, wtrtch :llepartB: Se'attle at 3:30 p.m., can no longer pick up passengers St. Paul------.• Lv. 8:40a.m.(CST) Lv. ;COQiing' In the same day to Seattle from the east on train No. 1 Mlnneapolis------Lv. 9: 15 a.m. (CST) Lv. :.OlJfbe,Ma1nstreeter. Nor can passengers arriving on train No.1 Fargo------Lv. 2:35 p.rn. (CST) Lv. Ot;,Tbe Mainstreeter and desirIng to go to Portland now connect Bismarck ------Lv. 6:20 p.m. (CST) Lv. 4: 19 p.m. (CST) .'II'ith"uaJn No. 460 of Great Northern Railway which is scheduled Mlssoula.------Lv. 3: 14 p.m. (MST) Lv. 10:01 a.m. (MST) Spokane------_ - Lv. 8:21 p.m. (PST) Lv. 2: 19 p.m. (PST) _.~·leaYe Seattle at 8:05 a.m. Nonhern Pacific's train No. 408 Pasco------Lv. 11:55 p.m. (PST) Lv. 5:23 p.m. (PST) .. hloh.depll~.Seattle at 12:15 p.m. en route to Portland, Oreg., EastAuburn- Lv. 6:20a.m. (PST) Lv. 11:05 p.m. (PST) can,no,' longer pick up passengers arrIving Seattie on The Main­ Seattle------.- - Ar. 7:00 a.m. (PST) Ar. 11:45 p.m. (PST) .streeter In' the same day as it could under Ithe previous schedule. 'Un4e-r;the new schedule the Nonhern Pacific points out it does PMor to August 18, 1988 Aft£rAuDuat IS, 1968 mate-a' connectIon with a bus at Little Falls, MInn. It is noted

TRAIN NO. ~ (EASTSOUND) ;tbe cOlUlection is made due to the bus having changed its schedule. And the eastbound Mainstreeter arrtves in St. Paul at 2:55 p.m., Seattle Lv. 9:46 p.m. (PST) Lv. 7:15 p.rn. (PST) whichallQwa a connection wHh Burllngton Lines traIn No. 10, Easl Auburn ------Lv. 10:29 p.m. (PST) Lv. 7:45 p.m. (PST) the .a.fternoon Zephyr, which Is scheduled to depan St. Paul at Spokane------Lv. 8:30 a.m. (PST) Lv. 4:35 a.m. (PST) .4:~O ·p.m. The Burlington Lines traIn No. 52, The Black Hawk, is Missoula ------Lv. 3:30 p.m. (MST) Lv. 11: 17 a.m. (MST) "

Lv. 1:18 (MST) s~hl!duled' St. 10:45 BlIlings---- a.m. Lv. 7:07 a.m. (MST) to depan Paul at p.m. Under the schedule Fargo------Lv. 4:25 p.m. (CST) Lv. 9: 13 a.m. (CST) prior to the August 18,1968, change, The Malnstree[er eastbound Mlnneapolls---- Lv. 9:55 p.m. (CST) Lv. 2: 30 p.m. (CST) arrh:.ed St. Paul at 10:20 p.m., which was in ample time to make St. Paul· ------Ar. 10: 20 P. rn. (CST) Ar. 2:55 p.rn. (CST) t.hls connection (the arrival time being some 25 mInutes earlier than the departure of The Black Hawk). Prior to the schedule change, train No.2 arrived Paaco at 5 Trains Nos. 1 and 2 carry cream from prOOucers to Mandan, a.m., which enabled passengera on the Spokane, Ponland, and N. Dak. The schedule change of August 18, 1968, has reduced Seattle RaHway Company's train 'No.4 to continue. after a delay, some of the area tradIng In Mandan. In 1968, the Mandan tneir journey vIa The Mainatreeter. After the schedule change Creamery and Produce Company alone paId the Nonhern Pacific train No.2 departs Pasco at 1:15 a.m., which Is too early to make $39,-360.75' ,In baggage fees for carryIng the cans which bring

connections or p:iclc up passengers from train No.4, which Is farm~separated cream to its Mandan plant. In 1968, total ship­ scheduled to arrive Pasco at 1:55 a.m. Nor can traIn No.1 ments involved about 60,000 cans on trains Nos. 1 and 2 which westbound, which now arrives Pasco at 5:08 p.m., make connec­ produced two million pounds of butter. Under the prior schedule tions With train No. 3 of Spokane, POt-t!and, and Seattle Railway train No; 2 arrIved in Mandan at 12:30 p.m. and westbound train Company. The latter train arrives Pa:eco at 12:20 a.m. PrIor to No" 1 arrIved at 6:07 p.m. Under the changed schedule train No.1 the schedule change train No.1 arrived Pasco at 11:55 p.m., and arrives at about 4:34 p.m. and the eastbound train No.2 arrives passengers en route to Portland could catch the other train. j Mandan at 4:25 a.m.t(MST). SImilarly, train No. 407 of the Northern Pacific from south of Use 01 passenger train service.-Attached hereto as appendlxB Seattle, Le., Portland, Oreg., and Tacoma, Wash., ill scheduled ia the "oJ! and off" count of passengers entraining and detraIning to arrive in Seattle at 8:45 p.m. The earlier depanure of train at each station served by trains Nos. 1 and 2 between St. Paul and No. 2 (Mainstreeter) under the new schedUle effectively breaks Seattle. The ,figures depict use of The Mainstreeter ,for the years thia connection. Also train No. 360 of Great Northern RaHway, 1966, 1967, and 1968 (the latest full year avaHable). en route to auch Washington poInts aa Everett; Mt. Vernon, " AppendiX B shows that durIng 1966, 1967, and 1968, revenue 336 I.C.C. passengers entrained and detrained on train No.1 totaled U6,626, 336 I.C.C. 18 INTERSTATE COMMERCE COMMISSION REPORTS NORTHERN PACIFIC RY. CO. DISCONTINUANCE OF TRAINS 19

135,1~5, and 104,317, respectively, and on train No. 2 totaled to do so by a pass issued by the Nonhern Pacific. The Nonhern 125.221. 135,069, and 94.698, respectively. The appendix also paciflc asserts there Is no evidence in the record that anyone reflects service at each station on the line. On the basis of 365 bas a right to such a pass implying that it Is issued for no "con­ trips a year for 1966, 363 trips a year for 1967, and 366 trips a sIderation." It asserts this autborization to ride free is a year for 1968, train No. 1 had revenue passengers per trip gratulty-a voluntary return for past services. However. if there averages of 346.92,372.25. and 285.02, respectIvely. Theutil1za­ is or has been conslderatlon or value received by the Northern tion of the equlpment Is not reflected by the total number of pas­ Pacific for which the pass Is a repayment, such consideration sengers per trip, for most of tbe passengers traveled less than must be recognized by the CommIssion, and, to the utent of its tbe full distance. This is Illustrated by contrasting the distance value, should be used to reduce the loss lJ!Curred in the operation between St. Paul and Seattle, 1,890 miles, with the average miles of these trains. This is especially trUe sInce the cost of operation traveled per passenger on train No. I, 388.8, 356.6, and 299.9, may be Increased by thIs free transportation authorized by the respectively, and on train No.2, 390.8, 346.1, and 295.1, respec­ Nonbern Pacific. While on this record It is difficult to determine tively, for the 3 years. The average shown for 1966 increased the particular weight to be accord'ed the fact that a large number due to an airline strike when many passengers traveled greater of nonrevenue passengers utilize the trains in issue, under the distances. beadIng "Financial results of operation" we have given con­ Westbound, the average number of revenue passengers on board slderation to the fact that some of these nonrevenue passengers train No. 1 leaving the respective stations between St. Paul and may, In fact, be carrier employees usIng trains Nos. 1 and 2 in Seattle ranged from highs In 1966, 1967, and 1968 of 109.33, order to get to and from work assignments. 118.08, and 85.97, respectively, and from lows of 52.18, 50\21, AppendIX C. attached bereto. compares the number of per­ and 26.89, respectively. SImilarly, eastbound, on train No.2, sons using the slumbercoaches In 1967, a peak year, and the highs ranged from 117.34, 125.69, and 82.80, respectively, and number of persons using It in 1969, In the months of June. lows from 53,47.02, and24.0l, respectively. The overall average July. and August. This indIcates that the number using the number of revenue ,passengers per train-mile between St. Paul slumbercoacb dUring the compared periods was approximately the and Seattle in 1965 was 53.5, in 1966 was 71.5, in 1967 was 69.1, same. This means that the Nonhern PacifIc shunted to other and in 1968 was 42.8. forms of transportation persons who were willing to use the Figures presented for the first 5 months of 1969 recorded 151 sleeping faclllties on The Mainstteeter,and who came back to use trips each for trains Nos. 1 and 2 and showed train No. 1 wltb it whe.it was restored. 30,342 revenue passengers entraIning and detraining, and train Other service.- The majority of the stations served byThe Main­ No.2 with 23,912. streeter have daily scheduled bus servIce In each direction. In addition to the fare-paying revenue passengers shown above, Three daily transcontinental bus schedules are prOVided by the the trains meet the needs of a substantial number of nonrevenue Greyhound Bus Une at the stations served by Tbe Mainstreeter. passengers. 8ased on a comparison for the summer months of Tbe Greybound SChedules, however, move through Butte. Con­ 1967, 1968, and 1969 of the average number of passengers on nections from Helena and other points on the line of The Main­ trains Nos. 1 and 2 to the next station at selected Montana polnts, streeter between Logan and Garrison would have to be made at Le., leaVing Forsyth, Billings, Uvlngston and Missoula on train Butte by the way of the Intermountain Transponation Company bus No. 1 and arriving Paradise and leaVing Livingston and Billings line, or at Garrison and Logan using the present bus schedule of on train No.2, the number of nonrevenue passengers usIng these the Northern Paclfic Transport. Between Missoula and Spokane. trains was approximately the same as the number of revenue pas­ GreyhPund bus service Is through Wallace, . However, sengers during 1967 and 1968 and somewhat greater in 1969. IntermountaIn Transportation Company maintains twodaily sched­ Except for children under 5 years old the latter nonrevenue ules in eacb dIrection from Missoula to· Kalispell through Ravalli. passengers riding these trains are. for the most part, authorized Western Greyhound Line ball two daily schedules from Spokane to 3361.C.C. Sandpoint througb Athol. A number of daily bus schedules are 336I.C.C. 22 INTERSTATE COMMERCE COMMISSION REPORTS NORTHERN PACIFIC RY. CO. DISCONTINUANCE OF TRAINS 23

While assenedly attempting to attract patrons to The Main, Terry. The train, scheduled to leave Bozeman at 4:16 p.m. and streeter, the Nonhern Pacific reduced assistance and service bY; arrive Terry at 10:56 p.m., was late and left Bozeman at 9:45 p.m. railroad employees at depots and on trains. ; This passenger's father, 87 years old, sat in his car outsIde of

Redllced assistance and service bll railroad employees atdepot~' the station from 10:30 p.m. until 5 a.m. in the morning when the

and on trains.-The ,record indicates that Nonhern Pscific is lceep~ train arrived. The station was closed and absolutely dark in a

Ing some of Its smaller stations open less than a total of 4~ very secluded area. She added her father was pretty cold. hours weekly, that most stations can be reached by telephone onI The following testimony was presented at Miles City, Mont., during busIness hours, and as a matter of actual practice, it i concerning service by the Northern Pacific folloWing Christmas sometimes extremely diffIcult to get someone to answer the pho; vacation: even dUring business hours at some of the larger stations:' The witness: We are served In Forsyth by the Malnstreeter and the North Coast AvallabilJ~ of information on train schedules and service ha been restricted. Prospective passengers experience great incon' Limited. However. to get on this It pretty near takes a presidential order. I have a son thal was goillfl to school In Helena, he couldn't venience, for the most part, in securing reservations on the Non. get reservatlons, he tried a week ahead or tlme to get reservsl10ns on lhe North

Coast Limited. Too few passenger coaches are available ~ coast Umlled, It was College ilme, he was bounced bade to the Mainstreeler, holiday periods when needed on The Malnstreeter for colleg, they were 'IOlided In \1lce a bUlldt at eattle- studelll:s and holiday travelers, and groups of students [have bee Question: When did lhls occur? left stranded In depots when there was no room for them on T Answer: Tlils was last winter. Question: What monlh, do you recall? Malnstreeter. Answor: ChrlstmlLS vuatlon, they were gOIllfl hack trom ChrlstlllM vacatlon. The following related Instances are representative ofth1s reduc They were loaded In \1lce a bunch at cattle. The service was atrocious, and I service: can see why the N.P, MainstreelerIs loSlngbuslness when they haw customers On July 13, 1969. a wi",ess after riding The Mainstreeter fro lhat have to put up with lh1s kind of sturJ. Missoula to Helena went to the baggageroom to get her baggage Question: What you Just stated reprdlng your son, you observed a.nd have pe r• sanal knowledge of? No one was there. She took a taxi horne and called them later~ Answer: That·s right, Ibought the tlcket. I tried to get him reservatlons on lhe The baggage was at the ticket office. rut train which he COUldn't get, WhIch COuldn't go il)to Helena anyway. but did

One of tne dIrectors of a funeral horne in Helena, testified tba' get lIlm on the Malnstreeter, it wa.s a bunch of cattl. ~n there, jammed cleax recently onThe Mainstreeter which carries remains for him ther' tull. wOllle't put extra cars on. have been no baggage attendants on duty in the baggage cars,' At Miles CIty the evidence indicates that the ticket agent is the: Change of policy toward passenger trains.-Concernlngtheques­ baggageman and that after handling the baggage he will sell you tion of whether or not first-class passenger trains should have a ,ticket if the train has not left. . precedence over freight trains in right-of-way on the road. the Since the last hearing the night service has been discontlnueqi head of the passenger department made the following answer: at the Terry, Mont" depot, and It is now necessary to buy the: ticket In advance and give advance notice the day before in ordeI!, From a business standpoint, I would lUre to defer my answer to the oPeIllt!ng department, trom a personal standpoint I wlU say something else, bul trom a to stop the train. Prior to the previous hearing there was night company standpoint, 1 would say tet the operatlllfl depa.rlment determine time service, the station was lighted and one could bUy his ticket, whether we should go In a hole or on a s1dlllfl or what have you tor a freight and get on the train the night of departure. Since the last hes ' tratn. the statlon is not lighted, there is a small light on the platform,; and there is no waiting room whatsoever, One revenue passenger,; The evidence of record indicates that both trains Nos. 1 and 2 are a housewife from Bozeman, Mont., who has usedThe Mainstreete on numerous occasions stopped for the passage of freight trains which are given precedence overThe Mainstreeter. for the last 36 years two or three times a year related that Itt! March 1969, she traveled by The Mainstreeter from Bozeman 336 I.C.C. 336 I.C.C.

tracting tracting

from from

revenues revenues

mined mined

expense expense Sleeping Sleeping

for for

operated operated

and and

cash cash from from

Passenger-miles Passenger-miles

number number ing ing

$1,607,703, $1,607,703,

pocket pocket

and and

operations operations

sets' sets'

met met

need' need'

changed changed

mately mately that that

in in departure departure

afternoon afternoon

departure departure Mail Mail

scheduling scheduling

sUll

Mainstreerer

4,500, 4,500,

Moorhead Moorhead

University University

Fargo-Moorhead Fargo-Moorhead Appendix Appendix

24 24

Passenger Passenger

Financial Financial

Remains.-The Remains.-The

order order Schedule Schedule

the the

system system

1968 1968

the the

fares, fares,

by by

the the

in in

forth forth

an an

in in

ride

from from

and and

losses losses

the the

from from

7,600 7,600

of of

car car

for for

respectively. respectively.

first first

Missoula, Missoula,

net net attributable attributable

by by

the the

analysis analysis

Post Post

from from

because because

to to

this

INTERSTATE INTERSTATE

revenue revenue

and and

North North

is is

D D

Ume Ume

to to express express

respectively.

the the of of

the the

with with

insofar insofar

average average

revenues revenues

the the

transportaUon transportaUon in, in,

an an catch catch

results results

expense expense

revenues revenues

chan

students students

5 5

shows shows

Northern Northern

based based

train. train.

prior

9:23 9:23

trains trains

Uckets Uckets

for for

Office Office

3:30 3:30

Fargo, Fargo,

months months

carrier's carrier's

Pullman Pullman

years years

from from

analysis analysis

attributable attributable

Coast Limited Limited Coast

enrollments enrollments lie lie

of of

Mainstreeter Mainstreeter

where where

the the

area area

mese mese

the the

passenger-mlles passenger-mlles

a.m. a.m.

as as revenues revenues

no no tothe

to to

on on

actual actual

p.m. p.m.

and and

However,

of of

revenue revenue

for for

Nos. Nos.

is is

honored honored

Department Department

Many Many of of

Fargo Fargo

on on

train train Concordia, Concordia,

sleeping sleeping

sleeping sleeping

the the

the the

the the COMMERCE COMMERCE

of of 1967 1967

Pacific's Pacific's

the the

opera/ion.-Appendlx opera/ion.-Appendlx

located, located,

Company Company

periods periods

the the

cotlelles cotlelles

the the

schedule

II) II) the the

appendix appendix net net

of of

(afternoon) (afternoon)

1969. 1969.

of of

fact fact

students students

subject subject

tickets tickets

1 1

three three

the the

of of

that that

first first

and and

University University

to to being being

tickets tickets

remains, remains,

are are

out-of-pocket out-of-pocket per per

and and

of of

sleeping sleeping

there

but but

that that

these these

in in car car

has has

the the

cars cars

morning. morning.

the the

approximately approximately

of of

leaves leaves The The total total

large large 5 5

not not

which which

the the

1968 1968

passenger-mile passenger-mile

the the

change

2 2

and and

at at

and and

COMMISSION COMMISSION

trains trains

collected collected

D D

changed changed

subject subject

has

the the

been been

revenues months months

$1,516,407, $1,516,407,

are are for for

schedule schedule developed developed

were were

collected collected

collected. collected.

carrier carrier Farf)O Farf)O

students students

past. past.

actual actual

during during

to to

Moorhead Moorhead

a a

system system

students students been

car car

REA. REA.

colleges colleges

Is Is

of of

concerned concerned

b1lled b1lled

the the

fulfilllng fulfilllng

earlier. earlier.

need need

and

were were

11:17 11:17

Montana Montana

determined determined

reflected reflected

Objection Objection

traIns traIns

of of

from from

a years years

results results

operation. operation. and and

'for 'for

a

amounts amounts D, D,

by by

for for

deterioration

claims claims wh1ch wh1ch

those those

1969 1969

number

Northern Northern

Milk Milk

rode rode

passengeF passengeF

derived derived

on on

REPORTS REPORTS

by by

6,500. 6,500.

336 336

must must

attached attached $2,594,424, $2,594,424,

the the

are are

a.m. a.m.

Missoula.-In Missoula.-In

the the

train train

4:25 4:25

State State

were were

a a

It It

1967 1967

these these

to to

because because

were were

conductors conductors with with

very very

train train

I.C.C. I.C.C.

conductor conductor

years years from from

is is has has

and and

on on

years years

North North

net net

to to

the the cut cut

(morning

p.m. p.m.

by by receiv receiv

of of

noted noted

No.2 No.2

2,500, 2,500,

by by

obtain obtain

College College

and and

line line

Tbe Tbe

the the

appro appro

Pacifl Pacifl

not not

cre cre

dete dete

train

out-of, definil definil

studen studen

class class

apply, apply,

No.2 No.2

he

actu actu

s s ml ml

act

well well

Dakc, Dakc,

196', 196',

in in

of of

In

19

ear ear

ret'. ret'.

bee: bee: 29 29

lie'

a a

al al

wa'l wa'l

th' th'

a a

t t

t t

("

' '

paid paid expenses expenses

maintaining maintaining

of of

billings billings years years

passenger passenger

depreciation depreciation

other other

units units

cost cost Nos. Nos.

operated operated

average average supplies supplies

motive motive [0 [0 Washington. Washington.

by by

Washington Washington

percent percent

gross gross

are are

amounts amounts

and and

2. 2.

from from

Northern Northern

actual actual

336 336

employees. employees.

senger-baggage by by

ants' ants'

to to

and and

are are

trains trains and and

As As

Diesel Diesel

1969 1969

Payroll Payroll

the the

Wages Wages

which which

l'lORTIiERN l'lORTIiERN

multiplying multiplying

REA REA

In In

I.C.C. I.C.C. by by

the the

per per

general general

newspapers, newspapers,

Indicated Indicated

carriers' carriers'

actuaL actuaL

I I cream cream

1967 1967

of of operation operation

actual actual

wages wages

regaIld regaIld

earnings earnings s\Wplles, s\Wplles,

of of

number number

Northern Northern

represents represents

orner orner

applicable applicable

and and

cost cost

passenger passenger

and and

to to

of of

to to

for for

by by

equipment equipment locomotive locomotive

has has

expenses expenses

of of

Pacific Pacific

train train

such such

taxes taxes

the the

and and

the the

be be

excise excise

expenses expenses

the the

englnemen englnemen rates rates

2. 2.

per per

office office Expenses Expenses

payments payments

Northem Northem

represent represent revenues revenues

been been

InjUry InjUry

than than

Other Other

above, above,

saved saved

to to

sleeper sleeper

eqUipment.

PACIFIC PACIFIC

subject subject

of of

the the

men men 1968 1968

of of

service service

and and subject subject

Depreciation Depreciation

diesel diesel cars cars

tax tax

are are

Pacific. Pacific.

wages wages

and and

submitted submitted

trains trains percentages percentages

added added and and

trains trains

hours hours

car-mile car-mile

tax tax

expenses expenses

less less

positions positions

rate rate

claims claims

are are

were were

englnehouse englnehouse

as as

was was

repairs, repairs,

were were

revenues, revenues, expenses expenses

estimated estimated

were were

reDects reDects health health

was was

which which

cars cars

for for

Pacific's Pacific's

to to

trains' trains'

the the unit-mile unit-mile

a a

and and

actual actual

revenues. revenues.

on on

trains. trains. RY. RY.

of of

the the

an an

of of worked worked

Nos. Nos.

Nos. Nos.

result result

computed computed

St. St.

computed computed

operated operated

Dining Dining

derived derived

the the

computed computed

St. St. station station

actual actual

trainmen trainmen allowance allowance

3.6 3.6

plUS plUS

are are

actual actual

CO. CO.

to to

a a

Is Is

and and billed billed

Paul Paul

to to

1 1

train train

1 1

actual actual

of of

for for schedule schedule

subject subject

amounts amounts

applied applied

the the

revenues revenues

a a Paul Paul

percent percent

based based

and and

and and of of

which which

Passenger Passenger

DISCONTiNUANCE DISCONTiNUANCE

be be based based

loading loading

employees' employees'

portion portion

expenses expenses

public public

welfare welfare

applied applied

equipment equipment

and and

operating

disconUnuance.

Union Union

revenues revenues

Expensefortheftrst Expensefortheftrst

amounts amounts

from from and and

car-miles car-miles

by by

eliminated eliminated

2.

by by fuel, fuel,

2.

on on

oniy oniy

are are

by by matI matI payments payments

for for

upon'test upon'test

trains.

buffet buffet

to to

the the

are are

on on

Dining Dining applying applying

general general

shoWing shoWing

utilities utilities paid. paid.

by by

cars cars

applying applying

these these

the the

Depot Depot

to to

of of

allocated allocated

gross gross

the the

for for

lubricants, lubricants, vacation. vacation.

benefits benefits

Pullman Pullman

actual actual

are are

derived derived

car car

handlers handlers

paid paid

revenues revenues

the the

sleeping

the the

pullman pullman

earned earned

wages wages

actual actual

service service

is is

the the

of of

operated operated

and and

The

based based

and and

Company Company

wages. wages. trains.

repairs repairs diesel diesel

counts.

office office

made made expense expense

trains trains

station station

on on

tax tax

the the

based based

number number

claims claims

system system

buffet buffet

OF OF

wages on on

the the

to to

and and Company Company

bills

from from amounts amounts

Train Train

was was

on on

cars

tax tax

on on

Company's

allocated allocated

are are

other other

are are

employees, for for

Minnesota.

un1t~mnes

appendiX appendiX

TRAINS TRAINS

respective

expenses Nos. Nos.

on on Minnesota

5 5

by by

and and

passenger a a

employee

Rent Rent

for for

rendered

paid paid rate rate

obtained based based

average

revenues

months

of of

for for

of

system

derived

baggage

actual

annual

use use

attend­ trains

loco­

train

days

these

1 1

mes­

paid,

for

the

for

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due

and

of

to

on 2~

D 5 32 INTERSTATE COMMERCE COMMISSION REPORTS NORTHERN PACIFIC RY CO. DISCONTINUANCE OF TRAINS 33

$14,490,972, and $873,512; other income $24,489,618, $26,920,560, It Is their view that such income of this carrier Is income which and $12,328,884; and net income after fixed charges and other ,; should! be used toward keeping the railroad in working order, and deductlons $23,455,765, $25,184,816, and $5,571,191. that any burden placed on Northern Pacific's other traffic by the The financial statements show the Northern Pacific to be oper­ operatiOn of The Mainstreeter should be offset by a very small ating profjtably and that it is a financially strong carrier notwith­ portion of the income received from the huge land holdings which standing its passenger train deficits in the operation of The Main­ are producIng oil, timber, mineral, grazing and other revenues. streeter. public interest.- Approximately 353 witnesses appeared at Northern Paci/tc income received 110m lana holainl7s.-Theevi­ the hearing and testified in opposItion to the proposed dis­ dence of record indicates that according to the records of continuance of trains Nos. 1 and 2. Those who testified included the Bureau of Land Management, United States Department members of the United States Congress from the States of Mon­ of Interior, the Northern Pacific was granted 14,739,697 acres~ tans, Washington, North Dakota, and Minnesota, the Governor of of land in the State of Montana. Also, Public Aids to Trans-: the State of Montana, the Administrative Assistant in behalf of portation. Volume 2, Aids to Railroads and related subjects, ~ the Governor of the State of North Dakota, members of the State published after expiratIon of the Emergency Railroad Trans- 1 Legislature of the States of Montana, Minnesota, North Dakota and portation Act 1933, from the Secretary of Research, Federal Washington, members of the State railroad regulatory commis­ Coordinator of TransportatIon, United States Government Prlnt1ng, sions, county and city offlcials, representatives of hospitals, Office, Washington, D. C., 1938, gave for the Northern Paciflc civic, religious, educational and social organizations, business system (not just InclUding Montana) the figure of 39,414,272 acres and professional men, union officials and numerous other mem­ as acreage patented and certifIed to June of 1933 'a's shown by bers of the public. An official of the city of ClUcago as previously Federal or State record. The Northern Pacific reported the num-' indicated also appeared and adduced evidence In opposition. ber of such acres to December 31, 1927, as 40,647,968, The lands Many individuals testified With respect to their own personal were Intended to provide a base for commerce and traffic to sustain needs and the needs of those in their care. CollectIvely, they the rail emerprise, and the Northern Pacific undertook In return expressed an emphatic need for the continuance of the service to construct a railroad and keep it "in working order." The of The Mainstreeter to fulfill their Individual and commW!lty needs. charter of 1864 envisioned that the lands for the most part would Many ~ressed concern with being left with only the North Coast be sold to settlers willing to farm or raise llvestOck, people who) Limited, a reservation train, on which they have experienced would open up the West and patronize the railway. The charter' various difficulties securing reservations; many felt that, incom­ specified that the granted lands were to be agricultural, not btnation, the two trains afford a more flexihle schedule. Many were mineral. The Northern Pacific chose not Ito sell all of its granted Critical of the carrier's equipment, stations, service, and methods lands, and retained mineral rights on much of the Iland it sold', of operation, and suggested this has contributed to discouraging The Senators from Montana have pointed out in tlUs proceeding that the public's use of the trains. It was their collective feelings this land placed in the Northern Pacific's care is now producing that the railroad had abandoned the public, notthe public the rail­ considerable annual income each year as shown below: road. Charges were also made that the railroad has not been as NORTHERN PACIFIC NONRAILROAO I"COME competitive, and that it has not in recent months exerted as much (/11 ll,o'Nun.J$ 0/ tlolla,.) effort in seeking new passenger trafflc or In pleasing and keeping 1967 1968 present passengers as it has in competing for and keeping its _~ Oil and ga5------~ .. ~ .. ·_ $8,430 S8,390 freight traffic. Some even charged the agents of the carrier 5,OO~ Tirtlber-. _. -----_---- __ ------~ -•------. - - - • 6,296' Mineral5 -- _. --- _. ------. - _. -- _. ---- _. - -. - -- 1.013 898 have attempted to dIscourage patronage with reduced service and

R e <11 e state rentals ------•• ------•• -- ~ ~ 3.309 3.US facilities. ~ ~~ ~ ~ 2~ Dividends- - -. - .... -- .. ~ _ .. -- ... ------. 8 J 11 ~ ~ ~ Interest.- - ~ ..... --- _.. --- -. ------•. - -.- 3.·"4 3.434 Representatives of student bodIes of several colleges presented ~ -.~ ~_ Or.her- - ..._~ - __ .... __ -- __ ..... •• -- _ ------!.Ltt8~. _.. J...Ltl1.. evidence indicating the use and need of students for The Main­ Total other jnC'om~---·------.------.- 22,1'9 94,9,19'

Net. other incOIl'~~------·.. --~~-----· -- •. ------16,689 16.709 streeter. Individual students, as well as staff members of the 336 I.C.C. 3361.C.C. NORTHERN PACIFIC RY. CO. D1SCONTlNUA:-lCE OF TRAL'lS 35 34 INTERSTATE COMMERCE COMMISSION R8PORTS colleges, also appeared to show such need. RepresentaUonswere While, obviously, the p.ending proceeding cannot be decided on made of the advantages and preferences of the elderly senior the basis of the prior decision, Nortlr.ern Pac. Ry. Co. Discon­ citizens as well as the handicapped in their use of the trains. tinuance of Trains, 333 I.C.C. 15, the discussion In the prIor Discontinuance would force many patrons to change their pattern decision relative to the Nonhern Lines merger (Greal North ern of transponation. Many expressed! a dislike for bus service and pac.-Merger-Great Nortlr. ern , 328 I.C.C. 460,331 I.C.C. 228, and a fear of traveling by air. Some even expressed fear of travel, 331 I. C.C. 869), here quoted for emphasis, is particUlarly relevant by private car on the open highway in the mountainous areas. in disposing of the Montana motion. In general, many expressed a preference for train over other" Evidence was presented that when the proceedings In Finance Dockel No. modes of rransponation based on comfort, cost, convenience, and 21418, Creat Northern Pac. -Merger-Creat Northern, 328 I.C.C. 460, 331 I.C.C. 228, and 331 i.C.C. 869, were first proposed, to enlist the publlc sup­ safety. po.rt for the merger and to ellminate fear that there would be a reduction of Community representatives and local businessmen were con­ passenger service If the merger were accomplIshed, responsible represen­ cerned with the adverse effect upon their current transponation ., tatives of the appllcant on more than One occasion promIsed the Mainstreeter needs and the effect upon the economy and the population of the service would be ma.lntalned ae long as the public used It. This represen­ community. Helena, the State capital of Montana, Is concerned tation was again reiterated by Robert S. MeFarlane, then president of the that it will be left without passenger train service. This not Northern Pacific Ra..!lroad and now Chairman of Its Board, under cross-exami­ nation In the Merger proceedings, In the 10110wing exchanges: only affects local Citizens but other members of the public and 'I' "Question: Is It then a fa..!r statement that you wlli maintain the passenger l members of the legislature who must travel to and from the service on the twotra1ns on N. P. trackal:'e 50 long as the present demant exists? capital for committee meetings and during the 60-day period . "Answer: Untll the public abandons them. It th ey ever do." they are In legislative session every other year. Also, In Missouia, Mont., on March 10, 1961, Robert S. McFarlane stated: Cenain labor interests, a1though pursuing a view that this Com- " mission should not allow discontinuance, request that protective II "Now while on the SUbject of serVice, I want to say a word about the Vista conditions should be imposed If the trains are not kept on. In Dome North Coast Limited and our Malnstreeter-some people think that the view of our findings herein, we need not reach that question. trains-the passenger tra..!n service through Missoula on the Norlhern Pacific However, we call the panies' attention to Great Northern Ry. Co., train Is going to be changed. It Is not goIng 10 be changed. I assure you that as long as lhe publie wlll use our trains, the North Coast Limited e.nd the DlscontinuaJice of Service, 307 I.C.C. 59, wherein It was found" Malnslreeter wlll operate just about as they are at present. Perhaps their that while we may considerthe interest of the carrier's employees schedu~s can be improved a little bit, but we are going to maIntain that in determining whether the public convenience and necessity wonderful serviee until the end, If ever, the public abandons the tratn service." reqUires the discontinuance of subject train.s. this Commission is ; Protestants submit that this promise was effective and that witnesses relying Without authority to impose conditions for protection of railway" upon It paraded to the stand to support the merger, and protestants maintain employees who may be adversely affected as a result of dis­ that this Commission, In its deliberation, took this Into account When It Indi­

continuance of passenger service under sectlon 13a{I) of the act. i, cated In its summary In the Merger, 331 I.C.C. page 289,that many shippers, Motion of tlr.e Montana Board of Railroad Commissioners.- At State and Federal agencies, commwlltles and shipper groups had dropped their Missoula, Mont., the Montana Commission made the following opposition and sURPorted, the mer,ger as a means to acht.eve overriding beMflts to the public through improved transportation. motion: Four days after the merger galood !loa..! Comrnlssion approval, this appli­ First, we move the Examiner and the Commission eventually to dlsml cation was nled. The carriers had hac! ample hint of the Impend11lg approval, these proceedings and to refuse to dlscontlnue the Malnstreeter for a period and suIficlellt time to prepare this application, for after the CommIssion had .:terrJer of ODe year based upon the decision In Finance Docket No. 2.4855, !JVrJrthem voted, on January 4, 1968. to reopen the proceeding, It was a generally assumed and conspicuously publlshed assumption In the transportation and Pac, RV. Co. Discontinuarace of Trains, 333 I.C.C. ~,to the effect that tM merger proceedings are sHIl pending, have not been decided, and are oow· financial communities that approval would be forthcoming. before the United States SURreme Court for Unal decision. . . . • ·We can find no Indlcatlon in Ihls record thai circumstances have changed At the hearing the examiner stated that the motion would be given' •• much In the Illt~rvenlng years, or are l.lIc.elyto change sutIiclenUy in the Ioresee­ consideration and discussed in the report. 336 I.e.c. 336 I.C.C. ..

APPI:NOIX A

tastbOl,lnd---rMd up

p,.••enc Prcl1iOlJ8

7!45 a.m. 8:40 a ,Ill. (CST) e ~ :2 5 p.m. 0 Lv--St, Paul, tHnn------...:r 31~ ...11 2:5~ p.m.(CST) 10: 20 fl.m. "~30 a,m. 8:20 9~1S 9:00 11 --.Hinne.polb------­ 462,81:1 7:30 9:~5 "f:OO :j~) --t:1k "iv~r _ 6:54 f 9: ~2 ------~---- 1,762 f 1:40 9:05 9:29 10:11 ------­ ,. --St. Clo\ld-~------]3,'91'5 1:0i' 9: 29 10:04 11:07 ------... 107 --l.i tTle raIl s------­ 7.551 12:73 p.m. 7:"3 10:43 1 \: 53 11:05 1<' --S taples------~----- 2.706 11:115 ?: O~I U; 37 __ WadElni31 ------__ H:Ol.l 1'2:1'. ~ ,Ill. ------­ '59 11.381 11:17 6:Jl H:27 1. ? ~ 3.0 ------­ --Plll'rhant------.------­ ~.019 10! ~o t:Ol 11:lo7 1:01 ------~ 20J --Oetl"Ol t Lakes----­__ 5,63J ]0:1B ---­ '" S:38 12:11 r·m. ~: ill ------­ n8 -J1a·wley------_ l,nO q:57 S:07 }:}:37 --D~ 2:1J -~------", 1worth------­ 2,102 9:)9 4'41 CUt 1;,/:42 f 2:U _..... _------­ 2!rl ••Koorhead------­ - •• -­ 22.93tf (L)f 9: 2~ , " 1:05 ']:]5 1:03 a.m. --Tarao, !'l'. D

S~f! note at end 01 t\1ble

Westbol.lnd---l"ead down I:utbound -r~ad up Station "OJ'lulotion TraIn Po. , Tri!lin tlo. '26

5~30 p.m. ~32 Lv--Taylor, H. Dak-----Ar ?lS 1:'10 9:17 !l:42 5110 - -Gladst one---­------­ 1:3' 9:01)' 6:19 9::'i6 p.m. ~: ~IJ a.m. 551 -­Dickl.nson-_--_------­ 9,971'" 1:20 B:51 &:07 0::)'] ,., --Sout:b Heart------­ f 1:4'/ 8:'W 6~il9 9;10 --bel fie1d------­ 1:37 8:07 '" --Tryl.lul'g------­ 7: 59 (J)7: ?O ':1:43 ~9!. --l'ledor"'------­ 13J f 1: 111 f 7: ~1 1:41 10:01 007 --Sentlnel Butte: _ H.O r 12:57 ,:211 7: 56 10:14 626 --l'Ieach---~~------­--­ 1....flO l:t!47 1:1J 8:06 10:38 £;;:Ii --Wif:..au>t. Hon't~-_- _ ·/ n!) f l:i'~ 33 6~ 54 9:15 ll:li!> 7:17 657 --G1end 1ve~ -----­ i ,OS8 12:02 a.l!'>. 6:0'3 6:09 686 --fal ton------­ f 11:0:;' 5~lJ f 9:53 12:23 a.m. 6':06 .. ~fflrJ'y------__ a __....._ f ]0: Sf. 5:0::1 10:41) 1:1B 8:\I~ 135 --Hiles City------­ lO~ as u:16 4:J8 11;1.;7 9,ljl.r. H!l :!.: ~o p_m, 7:21 __--F'ol'syth---­Hyshd.1n ------­_ 9d1 3-10 ]:<1:111 a.lfI. ;j ~ 0 5 .0. I 8:28 2:2.6 D:J6 )·)14 e" -Custer------­ f S:l! Z:10 ).:il7 <.1:58 11:J4 BB;? --Bl11ings------­ 52,F..51 7:(7 1 :18 -_Laura l--~ _ 7:07 !'>:19 eO? ".601 6· ... ;1 1':26 2:3). 5:1,3 9L3 --tolumbus.------­ 1,291 f folIe 12 ~02 a. "', 3:15 6t J ~ .., -llil. j~mbl!'r------1,oEtO 5:36 11:19 Io:OS 7;40 1 !1I? p.m. 9~8 -­[,.i yingstOll------a--­ 8,n~ 5:05 10:45 12:01 1.;:50 9!1>7 2:27 1 )013 --Bozeman------­ LJ,3!'l1 "":1G p.m. ~:J5 p.fII. 11:05 a.lll. 5;00 8:57 l,OJ2 --Be] grade~------1.O~" ~: 10 9:07 1.0tl.l --H4nhattan------­ .e.

S~e not"e a"t end of table

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54 INTERSTATE COMMERCE COMMlSSION REPORTS NORTHERN PACIFIC RY. CO. DISCONTnfUANCE OF TRAmS 55

APPENDIX C Northem Pacific Railway Company statement shOWing revenues, out,of­ ~tati3tics pocket e~pen.ges atld in connection with the operal.·ion 01 Analysis of use of ·lfatnstreeter in June, July, ond August of 1967, 1968,;' trains Nos, 1 and £ between St. Paul, Minn., and SeaUle, Wash" years and 196D,at two ,"'onlar.o. points, showing pa.ssengers On boa.rd '0 ne%t;' 1967, 1968, and 6 months of 19.69;-Continued station.

hem 1967 TRAIN NO. J no. 196B " mont.he 1969 eZp~ll.SI!'S

June, July, flnd Leave BilIlngs Leave Llv)ngsLon 13 Mail handlers. St. Paol-- •• _ .. _ $H,36g $23,143 $1,998 August I( Wage~ ot at-alton employees- •• _ •• Slumber Coach ChUdren S)umber~ COlLch Chlldr$G'''' 369 ,! 19 160,141 62,814

Wo.8'~.9 coach coa.ch I ~ and eJtpense - saueral

• ~ a1,3.'17 39,896 16,416 (a) ortice------18 ~~7.529 Payroll taxe~. health and weUal'l!l_ 395,005 166.28a -~-----_ ~967 revenue 652 3,662 •••••••• 478 3.209 ••••••••. 17 ~T,082 ~,828 Minnesota gros.s earnjn8~ laJl:-- __ • aZ.783 ~ All··· •...... ••. . 161 5 ,6 I~ 339 818 1,g28 33 18 Washinston e:,067 3,823 35 22 DepreciaUoa or eqalpmeat. -----.- 223.,s62 J'f~,281 70,1:17 23 Trai.n No. e Ren.t lor pas~etlger-lrain eazs ._-- 4.0,820 24,448 11,921 2( 1·fain ruel.-- •• --. __ ._. ••••• 489,438 398,72:1 169.773 1967 revenue ______646 3,412 " 25 •••••• 509 LubricanLs tar loComolivea______~9.96B 60,94,9 28,220 All··.·.·· ...... 1,229 S ,35 J 26 345 1,017 Other .gupplies ror locomotives --. 14,4ttl 11,8 J~ .. ,980 JQ6A rl!'venue _____ " __ 27 0 3.525 ...... 0 Enginehou~e expensos • __ •• _. 170,214 111J,2:J0 :50,25.3 All· ...... 0 f; .64.8 40J 28 0 Train I!lupplies Ilnd eXpenseS- ---- 610,681 4~O,830 136.:512 19159 revenu~-_ ••• ____ 2,674 , 29 4aO ...... 363 Operating sleepinR cars-· .__ ~30~4!2 2:12,096 143,309 All· ...... ( ,266 ( ,302 30 322 1,063 Dining alld buffet service-- ._. 6~3,~34 313.930 [29,648 3 I (a)AugU$t 1961 records not available. Terminal eXPcn.ses· Sl. Paul ---- 309.74:5 269,341 30.087 32 TeJ'mlnB.I expenses - Minneapolis - 160,J3l 14.4.&2J 66.013 33 Termi,nal ellipeNles - Billings .... __ 47,4.18 21.7:58 7.259 H T&rtnJnal ellpen.sal!! - Seattll't --- -- 36.089 29,063 122:iQ APPENDIX D 35 Operal ian 01 iol nl lines, ------. 4_". I (i ,0'4] l5, 7 84 ----J.:.Q.£3 _ 36 TolB.) expen:H!:O- • __ .______~,~O~.07a 6,861.185 2.264.,231 Northern Pacific Railway Company statement. showing revenues, ouf.-o 37 1~~I6.407 J'I,·~t loss-- .. - .------. 2,594,424 J,601,70.1· e:zpe1l.3es call1lection uyt.th d~ pocket and slati;stics in the operation III train8 Nos, 1 und f between St, Paul, Minn., and Seattle, Wash .• years.: AdJustments lo 1968 re$uHs. aa 1967, 1968, and 6 months of 1969 . di!!lcussed :n reporl: (I) To COrrect Billings &.enninal eiltponse _ ••••.•• ._. _ 17,( 30 IteR'! (2) To reflect net. reeder valua __ 11167 L9B8 15 months 10.363 no, I gaO (8) To 8Jirrllnate iabor cosls attributable Lo repairs a.nd Re1JenLJea ser v icillgeXpenS6s -_.-.-_._. 1,123,141 . (4) To eliminale"payro)1 ~a~es ~ L P as S~ n g eJ' •. -- __ - - - _ • • __ ._ • $ 2, °L6, 663 SI,4~9,lfI~ atld and lIIe 2 Sleepine: car -.---. ---._. __ • _ health Itare ex. adJus~- ;\fall· -- _ - --. . ._ pen3e at~rlbuta"ble to 3 2,101,361 1,3<9. L81 -.----~------( E J( pres IS ------_. ~ __ • _ 890,792 2U.H6 menL nllmbeJ' 8 - --- ._ 168.4.70 ••• 5 MlIk fl:nd cream- -.-- •• __ •• • H,I03 (7.262 Total or adjustments 1-4 ------___ ],Jlp,31H _ 6 Pining and burrel------•• __ • 303,0.3 1150.47 [ N6It savable 10.'39 before income Other-. ~ __ -- •• _ 7 28.698 21.8(6 ~ax afhet (o ve rslated)(-1968 --- •. _._ 1.,2Hi.OaO 6 Total revenues -----.--- •• __ - _ 5.986:-666 3,261,361 Less income tax effect- ·_._.... •• •• 336,1508 -.- .... _--.

N~L r_":I E~'Pens~8 SavablB. ross (ove tilLed) 1_ '968 .

9 Wa.i:'~S 938.(22 o! enQ'inemt!n------_ 706.303 71 !L581 QVerst9.1~lO 10 \olages 01 tralrltnt>n-.·· _. .• 668,D9( 68'.683 IJ'I,'e-~ out-Qf-pockeL los9 for 1968 is an Jndelarmin!:lte degree (Jue II ""ages Qf Iraln &Ilendanls----.- __ 'l3,960 14 ,J 16 lo derJctencles tn baolo compat.B.U