,­ T E MARC GREEN: -30­ Marc Green, director of information services, retired on March 31, ending a distinguished ca­ reer of 39 years with the Milwaukee Road. For 36 of those years it would be no exaggeration to state that Marc served as the voice of the railroad. Marc joined the Milwaukee in 1936 in the Real Estate Department. He transferred to the Public Relations Department in 1939 as assist­ ant editor of the Milwaukee Road Magazine, one of the railroad industry's oldest employee pub­ lications. Marc became editor in 1940, a post he filled ably and creatively until 1958 when he was named director of publicity. He was appointed director of information services in 1972. During his long career Marc wrote literally millions of words about the Milwaukee Road. His positions in the Public Relations Department provided him with a vantage point afforded to few people who have worked for the railroad. In the magazine, annual reports, countless news releases and an endless procession of other publi­ cations Marc reported the activities of the Mil­ waukee Road during some of the most exciting years of its history. Marc was also active in various professional associations. He is a former president of the American Railroad Magazine Editors Associa­ tion (now the Association of Railroad Editors) ; a member of the Chicago Chapter of the Public Relations Society of America; a member of the Chicago Public Relations Clinic; and a member of the Railroad Public Relations Association. Those who had the privilege of associating with Marc Green know him as a talented writer, a keen observer of the times and a loyal and ded­ icated employee. The man who spoke so well for the Milwaukee Road for so many years will be missed. Marc and his wife Helen plan to continue to live in Western Springs, Ill., a suburb of Chicago. 2 THE MILWAUKEE ROAD MAGAZINE transport briefs THE MILWAUKEE ROAD ICC Approves 7% General Freight Rate Increase MAGAZINE On March 25, the Commission reversed its earlier decision and approved~x Parte 310 which provides VOL. 63 April, 1975 NO.3 for increases up to 7% in railroad freight rates on 15 days notice. In granting the increase, how­ PUBLIC RELATIONS DEPARTMENT ever, the ICC ordered hold-downs in the rates for the automotive, home construction, lumber and re­ Union Station / Chicago cycling industries which are considered depressed industries. The Milwaukee Road Magazine is published lor active and retired employees of the Chicago, Milwaukee. St. Paul and Pacillc Railroad Com­ pany. to whom It is distributed free. It is available to others al $1.00 per year. Retired employees may" continue to receive it without cost by send~ Fourth Quarter Drop in Rail Industry Ing their address to the circulation department. S24 Union Station. Chicago. III. 60606. Operating Income Member, Declining traffic and the effects of inflation caused the railroad industry's operating income Association for the fourth quarter of 1974 to drop from $276 of Railroad million a year earlier, to $201 million. Editors Industry-wide operating revenues f~r the fourth quarter climbed from $3.9 billion in 1973 to $4.3 Contents billion last year - an increase of 10.3%. However, 2 Marc Green during the 1974 fourth quarter operating expenses, taxes and rents rose 13.1% over the 1973 fourth . 4 Proposed Acquisition of PB&W quarter figures. 5 Railroad Reorganization Plan Despite the decline in fourth quarter earnings, 6MMTC annual statistics showed improvement over the 1973 7 Alaska Traffic level, reflecting higher traffic levels and rate 8 St. PaUl Roundhouse increases granted during the year. 9 Railroad Retirement Benefits Operating revenues for the year totaled $16.9 bil­ 10 Little Joe E70 lion, up 14.3% over the record set a year earlier. Operating expenses, taxes and rents rose from 12 Savanna Credit Union $14.0 billion in 1973 to $16.0 billion last year, 13 Insurance Coverage also a 14.3% increase. 36 Savings Bond Drive Net railway operating income rose to $981 million for 1974, a gain of $14.8% over 1973. As a re­ sult, the industry's rate of return on net in­ Cover vestment in 1974 was 3.45%, up from 3.06% in 1973. It's time to take stock in America. Worthington L. Smith is shown re­ ceiving one of the new Bicentennial Series E Savings Bonds from Walter Continued Rock Island Operations Ordered Kocher, Chicago area manager, U. S. Treasury Department. These Bonds The federal judge who is overseeing the bankrupt will carry the same interest rates as Rock Island has directed the line to continue ac­ the familiar Series E Bonds and will cepting freight shipments at least through May 15. be available in denominations of $25, The Interstate Commerce Commission voted unani­ $50 and $100. The Treasury Depart­ mously to allow the Rock Island to file for a ment is issuing the new Bonds in terminal surcharge of $30 per car and $15 per observance of the nation's 200th trailer on five days' notice to the public, sub­ birthday. ject to protest and possible suspension. The sur­ charge would apply only to shipments originating and/or terminating on the Rock Island Line and would remain in effect no longer than 60 days. The actions of the federal judge and the ICC were taken so that shippers who rely on the Rock Island would not be cut off abruptly from service. These actions will allow the Rock Island to continue operating until at least June. APRIL, 1975 3 Portland to Pittsbu rgh Milwaukee Road proposes acquisition of eastern line Extension of Milwaukee Road BN and UP systems, and that suc­ known as the Regional Rail Reorgan­ freight service from Chicago east­ cession to the lease of the PB&W ization Act, which provides guide­ ward across Indiana and Ohio to would seem to be one opportunity. lines for restructuring the bankrupt Pittsburgh, Penn., was proposed last The Milwaukee Road's largest Northeast carriers. month by Worthington L. Smith, Mil­ freight interchange with '. the Penn Commenting on other parts of the waukee Road president. Central is at Chicago, where more Preliminary System Plan, Smith testi­ The Milwaukee Road is interested than 80,000 cars were interchanged fied that the Milwaukee Road has no in acquiring the lease of the Western in 1973. "The Milwaukee Road intention of abandoning service to a Lines portion of the Philadelphia, would seek to preserve this business steel mill at Hennepin, Ill. The plan Baltimore and Washington Railroad by all means at its disposal," Smith does not recommend including into Co. (PB&W), a corporation within testified. the ConRail system certain tracks of the bankrupt Penn Central, Smith He pointed out that while the the Penn Central in Illinois which are said. PB&W is presently a duplicated Penn used by the Milwaukee Road to gain The Western Lines of the PB&W Central route to Chicago, and por­ access to the mill. currently connect with the Milwau­ tions of it have been designated as The Milwaukee Road has taken kee Road at Western Ave. in Chi­ "potentially excess" by the U. S. the position that the plan should not cago, Ill., and at Terre Haute, Ind. Department of Transportation, the be permitted to end or threaten any The Western Lines run southeast­ PB&W would become a Milwaukee services pre;;ently performed by the ward from Chicago into Indianapolis, Road main line if the Milwaukee Milwaukee. Smith said that, if nec­ Ind. From Indianapolis, branches of acquired its lease. essary, the Milwaukee Road is pre­ the railroad extend westward to St. Smith said that together, the Mil­ pared to purchase trackage to pre­ Louis, Mo., and southward to Louis­ waukee Road and the PB&W could serve present service to the steel mill. ville, Ky. Other lines run eastward cut the time it takes to ship freight The Milwaukee Road's proposal from Indiana to Cincinnati, Ohio, between the Midwest and Pittsburgh to acquire the PB&W has drawn op­ and across the Ohio River into Pitts­ by at least 24 hours in each direction. position from some other railroads burgh, the eastern terminus of the Preserving and improving the PB&W . in the Midwest and Northeast that PB&W's Western Lines. system would allow resumption of expect to pick up portions of the Smith made the proposal during industrial development along its bankrupt systems. Hearings on the testimony at hearings in Chicago on lines, Smith said. Preliminary System Plan will lead to the Preliminary System Plan for He said that the Milwaukee Road's development of a Final System Plan, restructuring the bankrupt North­ plan to lease the' PB&W would be which will be sent to Congress this eastern railroads. Hearings were con­ entirely compatible with legislation, summer. ducted by the Rail Services Planning Office of the Interstate Commerce Principal western lines of the PB&W Commission (ICC). The Preliminary System Plan would partially dis­ V f member the PB&W. l \I ( /. \ 11~i1waukee Trustees of the PB&W suggested I'-­ , that the Milwaukee Road acquire the , J lease of the line as part of its re­ '\'-'-'-----r..... , organization, Smith said. ,; ~hicagQ In his testimony, Smith concluded _../ that recent ICC statements about whether or not to allow the Milwau­ kee Road to join merged railroad systems in the Midwest and West seemed to indicate the ICC's desire to keep the Milwaukee Road as an in­ dependent property. "If the Com­ mission remains of this view, the Mil­ waukee Road must look elsewhere for the opportunity to improve its resources in the public interest," he said.