October,1974
Total Page：16
File Type：pdf, Size：1020Kb
TE THE OCTOBER, 1974 OCTOBER,1974 Michael Sol Collection Equipment Budget has been enlarged from approx imatelyEquipment$27 million Budgetin has1973 beento somethingenlarged fromin excess approx ofimately$40 million $27 millionin 1974. in 1973 to something in excess ofIt $40requires milliona great in 1974.deal of patience to work for progress.It requiresThis means a greatthat dealpriorities of patiencemust to bework for establishedprogress. andThisa meansvery clear that recognitionpriorities mustmade beof whereestablishedlimited andresources a very mustclearbe recognitionspent first madein order of W. L. Smith to whereget the limitedmaximum resourcesbenefit. mustWhile be spentit might firstappear in order from the vantage point of each of the 14,000 W. L. Smith to get the maximum benefit. While it might appear employeesfrom the ofvantagethe company point ofthat eachwe ofare thenot 14,000doing enoughemployeesin certain of theareas, companyand I thatfreely weacknowledge are not doing thatenoughthis is inthe certaincase, Iareas,would andalso I freelyhope thatacknowledgeeach of usthatwill thisrecognize is the case,an improvement I would alsowhen hope wethatsee eachit of andusbe willencouraged recognize anby improvementthe fact that there whenare we see it numerousand be encourageddemonstrations by theon factthe thatproperty there atarethis timenumerousof additional demonstrationseffort to get onus thein thepropertycondition at this in timewhich ofwe additionalwould like effortto be.to getI hope us inthat the thesecondition A message from commentsin which willwe wouldpartially likeanswer to be. Ithe hopequestions that thesein theA messagePresident from yourcommentsmind. will partially answer the questions in your mind. the President Widely scattered as we are across the railroad system, little more than one year ago I used this space in our I thinkWidelyit is possiblescatteredfor as mostwe areof acrossus to see thechanges railroad takingsystem, A companylittle moremagazine than oneto yearexplain ago Ithe usedobjectives this spaceof inthe our placeI thinkthat itwill is possiblehave a forfuture mostimpact of us onto seeour changesprofitability taking MilwaukeeA companyRoad magazineand to show to howexplainwe werethe objectivesa,ttempting ofto the as placea railroad, that willand haveconsequently a future affectimpactour onability our profitabilityto make achieveMilwaukeethem. RoadLooking and back,to showI would how wesay werethat attemptingin general to furtheras a railroad,improvements. and consequently affect our ability to make weachievehave been them.able Lookingto accomplish back, I mostwouldof saythese thatobjectives in general furtherIn 1973 improvements.this railroad moved more carloads of freight throughoutwe have beenour able10,000-mile to accomplishrailroad. most Yetof thesethis objectivesoverall than Inat any1973other this timerailroadin its movedhistory, moretopping carloadsthe recordsof freight accomplishmentthroughout our should 10,000-milenot be lostrailroad.sight ofYetwhen thiswe overallare setthanduring at anyWW otherII when timethe in railroadits history,went toppingall-out theto moverecords dealingaccomplishmentwith specific, shouldday-to-day not be problems.lost sight of when we are warsetmaterials. during WWLast II year'swhen goodthe railroadshowing wentwas all-outundoubtedly to move dealingIn a letter withto onespecific,of our day-to-dayemployees, problems.I recently attempted helpedwar materials.by outside Lastfactors year'swhich goodcaused showinga national was undoubtedlyupsurge to answerIn a letterhis questionsto one of ourabout employees,the condition I recentlyof theattemptedrail in helpedrailroad bytraffic. outsideYet, factorsdespite whichthis causedyear's adrastic nationaldeclines upsurge roadto answeron his division. his questionsI think abouta portion the conditionof that letter of thebears rail in inshipments railroad traffic.of several Yet, despiteimportant this commodities,year's drastic declines1974 repeatingroad on here:his division. I think a portion of that letter bears promisesin shipmentsto come ofclose severalto 1973 importantin total commodities,carloadings. This1974 repeatingTo understand here: what we are attempting to do haspromisesbeen the todirect comeresult close ofto our1973aggressive in total carloadings.pursuit of new This requiresTo understandthat the basic whatobjective we are ofattemptingthe railroad to do transportationhas been the directmarkets resultand ofour ourability aggressiveto expand pursuitsome of new companyrequiresbe thatkept thesquarely basic objectivein mind. ofThe the railroadfirst objec oldtransportationones. markets and our ability to expand some tivecompanyis to return be keptthe railroad squarelycompany in mind. toThea profitable first objec oldThis ones.month we inaugurated run-through operations operationtive is toand returnto keep the railroadit there. companyThis has basicallyto a profitable with Thisthe Burlingtonmonth we Northerninauguratedto moverun-throughunit coal operationstrains beenoperationaccomplished. and to keepThe itsecond there. andThisthird has basicallyprimary fromwithMontana the Burlingtoncoal fields Northerntoa Wisconsin to movepower unitplant, coal andtrains objectives are very much interrelated and include been accomplished. The second and third primary morefromunit Montanacoal trains coal fieldsare being toa Wisconsinplanned. Lastpowerspring plant,we and expanding market opportunities for the Milwaukee objectives are very much interrelated and include beganmorea unitnew coalconcept trainsin grainare beingtransportation planned. Lastwith springour so we Roadexpandingand engaging marketin opportunitiesa program to forstrengthen the Milwaukee calledbegan"MDT" a new concepttrains, or in Mini-Unit-Trains.grain transportationWe withhope ourto so physicallyRoad andboth engagingthe plant in aand programequipment. to strengthen see this kind of shuttle service expand, enabling us to physicallyAs a result bothof our thereturn plant toandprofitability equipment.in 1973, called "MDT" trains, or Mini-Unit-Trains. We hope to move more grain and corn from the places in which it is we haveAs aexpanded result of ourour returnequipment to profitabilityinvestment in 1973, see this kind of shuttle service expand, enabling us to programwe haveover expandedthe past ourtwo equipmentyears, both investmentin locomo grownmovedirectly more grainto ocean and cornand fromriver thelocations, places inalleviating which it is tivesprogramand cars. overAlso, the pastas a resulttwo years,of improved both in operlocomo congestiongrown directlyat the toGulf oceanPort andterminals. river locations,When domesticalleviating ationstives lastandyear, cars. weAlso,were as ablea resultto take of improvedon some oper automobilecongestionsales at thelagged Gulfearlier Port thisterminals.year, andWhenthe domesticpublic additionalations lastmaintenance year, we wereof wayable programsto take onover someand demandautomobilefor imported sales laggedcars earlierincreased, this ouryear,railroad and thefound public aboveadditionalwhat had maintenanceinitially been of waybudgeted programsand overwe and a demandway to shipfor importedthese cars carsquickly increased,from ourocean railroadports foundto have done the same thing in 1974. We cannot lose above what had initially been budgeted and we Americana way tomarkets. ship these cars quickly from ocean ports to sight of the fact, however, that the ability to spend have done the same thing in 1974. We cannot lose AmericanThroughout markets.the railroad we are trying to make the moneysight isofdirectly the fact,tied however,to the abilitythat theto abilityearn money to spend kindsThroughoutof changes neededthe railroadto meet wechanging are tryingcustomer to makeneeds the in moneythe first isplace. directlyWe tiedare tonot theprivileged ability to toearnengage moneyin and to keep our operations profitable. By first meeting our deficitin thefinancing, first place.so Wethat areour notbudgets privilegedare necessarily to engage in kinds of changes needed to meet changing customer needs restricteddeficit financing,to the revenues so that weourtake budgetsin. That are necessarilyis why goalandof toprofitability keep our operationswe are better profitable.able toByaccomplish first meetingthe our therestrictedemphasis tois, theand revenueswill continue we taketo in.be, Thaton im is why restgoalof ofthe profitabilitythings that wewe'd are allbetterlike ableto see to doneaccomplishon this the provingthe emphasisour market is, andposition will continuein order tothat be,we oncan im railroad.rest of the things that we'd all like to see done on this improveprovingour ourplant. market position in order that we can railroad. improveYou might ourbe plant.interested in knowing that the CapitalYouImprovement might be interestedBudget inwas knowingenlarged thatfrom the $6.3Capitalmillion Improvementin 1973 to $11.4 Budgetmillion was enlargedin 1974; fromthe $6.3 million in 1973 to $11.4 million in 1974; the Michael Sol Collection tran ort brie THE Proposetransport7% rate briefsincrease MILWTHE UKEE ROAD The nation's railroads have agreed to apply to theProposeInterstate 7% Commercerate increaseCommission (ICC) for a MILW UKEEMAGAZINE ROAD 7 Theper nation'scent general railroadsfreight haverate agreedincrease. to applyThe to proposedthe Interstateincrease Commercewould become Commissioneffective (ICC)on forJan. a 1 MAGAZINE 7 per cent general freight rate increase. The VOL. 62 October, 1974 NO.8 and would cover recent cost increases faced