T E AUGUST, 1974 NE " ... the intent behind the creation of our department was to provide greater coordination and assistance in the planning activities in all The departments." Corporate Planning Department G. A. Kellow Vice President-­ Corporate Planning In an article which appeared previously in this maga­ ditions. In a very real sense, planning involves a delicate zine, President Smith stated what he considered to be balance between short term commitments and long term the most important objectives of the Milwaukee Road. flexibility. These objectives bear repeating. They are: There are several types of planning. COMPREHEN­ 1) Provide the level and quality of total service nec­ SIVE planning involves the constant formulation of ob­ essary to retain existing positions in transportation mar­ jectives and the guidance of the company's activities kets and provide a base to profitably expand the railroad's toward their attainment. Comprehensive planning calls participation in existing and in new markets. for a total evaluation of the company's operations as well 2) Maximize utilization of assets, eliminating those as its potential. This kind of overview is one of the areas not required for present and future needs, and concen­ in which the corporate planning staff can play an im­ trating available resources toward activities that have portant role. present and future strategic purpose. A second type of planning, called FUNCTIONAL, 3) Establish and maintain a responsibility budgeting has to do with the individual elements of a total problem. and control system encompassing all departments and Functional planning focuses on how each part can best subsidiaries to provide proper control of all activities. contribute to the whole. In practice this type of planning Objectives establish the direction in which a company is often narrow in scope-but very intensive in depth of wants to go, but the accomplishment of objectives does analysis. Functional planning requires that the individual not just "happen"-it must be "made to happen." Every departments be totally involved. department on the railroad plays a vital role in accom­ The third type of planning is PHYSICAL and is con­ plishing results, and planning functions in each depart­ cerned with the location, arrangement, and characteristics ment establish an orderly sequence of activities needed of actions. Physical planning is geared toward implemen­ to support the total corporate objectives. tation-toward the actual accomplishment of plans. The Corporate Planning Department was established One of the major tasks of our department is to analyze officially on Jan. 1, 1973. This does not mean, however, the basic strengths and weaknesses of the company. This that there were no planning activities in the company task falls into many parts. Among them is the need to prior to this date. Rather, the intent behind the creation rationalize and categorize the strategic purpose of rail­ of our department was to provide greater coordination road lines and the need to identify which lines are to be and assistance in the planning activities in all depart­ considered candidates for abandonment or coordination. ments. An?ther vital task is to develop a corporate strategic The purpose of planning, as we see it, is to develop plannmg framework within which the individual depart­ sound, realistic, coordinated and continuous long-range ments can work out supporting plans and actions. In goals in the face of many challenges. Among these chal­ conjunction with this task is the need to coordinate the lenges are the ability to appraise the future, the develop­ planning activities of all departments as they relate to ment of alternative courses of action, the establishment of the long- and short-range goals and objectives of the direction of effort, and the establishment of a basis from company. It is also our responsibility to provide assist­ which strategy can be changed to adapt to changing con­ (Continued on page 39) 2 THE MILWAUKEE ROAD MAGAZINE transport briefs THE Car supply remains high The Association of American Railroads (AAR) MILWAUKEE ROAD reports that, in general, the nation's railroads MAGAZINE have the best car supply situation since large grain shipments to Russia began in the summer of VOL. 62 August, 1974 No.6 1972. In early July railroads noted a surplus of rail cars of all types-meaning that, overall, more PUBLIC RELATIONS DEPARTMENT cars were available than were on order by ship­ Union Station / Chicago pers. A major test for the car supply lies ahead this year when the harvest of corn occurs simul­ taneously in Iowa, Illinois, Indiana, Ohio and C. C. D;ILLEY, Director Nebraska. This harvest begins in late October and Public Relations and Advertising continues into late December and is the period when PATRICK O. HEINAN the movement of grain and corn is heaviest. The Magazine Editor AAR said it anticipates no major car supply prob­ lems partly because of improved car utilization • The Milwaukee Road Magazine is pUblished for and an increase in the number of new covered hopper aclive and retired employees of the Chicago. cars available. More than 30,600 covered hoppers Milwaukee, 51. Paul and Pacific Railroad Com­ pany, to whom it Is distributed free. It is available have been added to the nation's car fleet since to bthers at 51.00 per year. Retired employees may continue to receive it without cost by send­ 1972 and new cars are being added at a rate of ing their address to the circulation department, about 1,400 per month. 824 Union Station, Chicago, III. 60606. Member, Court rules on impact statements Association A federal appeals court has told the Interstate of Railroad Commerce Commission (ICC) it must determine at the Editors outset of all railroad abandonment proceedings whether an environmental impact statement is Contents required under the National Environmental Policy Act. The court said that a staff investigation 2 Corporate Planning Department would be necessary to allow an informal decision 4 Iowa Mini-Unit-Train before abandonment hearings begin as to whether a 5 Milwaukee Piggyback Terminal more detailed study is required. The ruling was handed down by the U.S. Court of Appeals in a 6 Era Ends at Deer Lodge case rising out of an order by a federal court in 8 Computers in the Mountains New York one year ago which granted a preliminary 10 The Milwaukee's Diesel Fleet injunction directing the ICC to prepare impact statements before hearings on railroad abandonment 17 Port Townsend Railroad proposals. 18 New Sales Training Program EPA sets train noise limits 20 Crew Change Terminal Proposal Noise emission standards for engines and rail ~rs proposed by the Federal Environmental Protection Cover Agency (EPA) are expected to cost railroads Twenty of the Milwaukee Road's new between $85 million and $103 million. If made covered grain cars stand on a siding law, the EPA plan will call for installation of near Davenport, Iowa, awaiting un­ sound-suppressing mufflers on the nation's 27,000 loading into barges at the Pillsbury diesel-electric locomotives to meet standards Co. elevator in the background. This which become effective in four years. Mini-Unit-Train, nicknamed "MUT", is one of several shuttle trains oper­ Urge support for Retirement Fund changes ating in the Midwest to move grain All major railroad unions have encouraged members and corn quickly from small eleva­ to write their congressmen in support of pending tors to major barge-loading points legislation aimed at saving the Railroad Retire­ on the Mississippi River. All of the ment Fund. The proposed law was introduced as equipment used on the MUTs is ded­ S. 3612 in the Senate and as H.R. 15301 in the House icated just to this service. Even the of Representatives. Enactment of legislation caboose, shown here, is kept with contained in these companion bills is also seen by the train during the unloading proc­ management of the nation's railroads as a top ess. See page 4. priority if the financially-troubled retirement fund is to avoid a predicted collapse by 1981. Proposed legislation, if passed, would correct inequities in the way some retirement pensions are paid and would simplify the now-complex formula for computing benefits. See story on page 5 of the July, 1974, issue of The Milwaukee Road ft Magazine. AUGUST, 1974 3 Iowa grain I, Moves by night A night's work completed (photo below), Engineer Jack SUllivan, left, Brakeman Glenn Miller, center, and Con­ ductor Ed Massie have delivered 20 cars loaded with corn and soybeans to a Mississippi River barge landing. As dawn breaks, the Milwaukee Road train crew will begin its rest period and their two locomotives will be serviced at Nahant Yard near Davenport, Iowa. Mean­ while, at the nearby Pillsbury Co. grain elevator, the grain hopper cars are unloaded into two barges moored at the river's edge. It takes only about 15 minutes to un­ load each of the new 100-ton capacity cars. Once loaded, the barges will be taken down the Mississippi to ocean ports near the GUlf of Mexico. There the grain will be transferred to ships for exporting. The grain is brought from country grain elevators near Perry, Iowa. These elevators must take at least five cars and load them on the same day. Grain elevator opera­ tors are enthused with the new service, and some claim it has enabled them to pay farmers eight to nine cents more for a bushel of grain. Monthly grain shipments from some of these small elevators doubled when these Mini-Unit-Trains started in April. When the 20 cars have been gathered from the coun­ try elevators, the loaded train starts on its way eastward to Samoa, Iowa, and then southward to Davenport.