i Q k O C‘

IVTRODUCTIOIV

In order to present a frame of reference in which to Under this trusteeship, the Massachusetts Port Authori­ place the Massachusetts Port Authority and its efforts to ty on February 17, 1959, sold a revenue bond issue of aid the commerce of the Commonwealth, we offer the $71,750,000 bearing interest at 4%%, and took over following background information: operation of the Port of Boston facilities, Logan Inter­ national Airport, Hanscom Field, and the Mystic River The taxpayers of the State provided approximately Bridge. $30 million after World War II for improved ship-truck- The Authority is moving toward objectives. It was railroad facilities on the Boston waterfront. Over a longer authorized and empowered in its enabling act “to in­ period, the taxpayers invested approximately $70 million vestigate the necessity for the development and improve­ in airplane-automobile-truck facilities at Logan Inter­ ment of commerce in the city and the metropolitan area national Airport. surrounding the city and for the more expeditious han­ Despite these huge investments and the efforts of State dling of such commerce, including but not limited to, managerial agencies, sizeable annual deficits had to be additional traffic facilities, bus and truck terminals, off- met from tax revenues. In accordance with the “equal and street parking facilities, and passengers at steamship, proportional” tax provision of the State Constitution, the railroad or motor terminals or airports, and to make such users and the non-users of the facilities were treated alike. studies, surveys and estimates as may be necessary to To relieve non-users of additional tax burdens, the determine the feasibility of any such facility . ..” Governor and Legislature created the Massachusetts Port In the exercise of its responsibility under this mandate, Authority, a self-supporting trusteeship. the Authority has proposed a development of the railroad It is instructed to promote and protect the commerce yards in the North Station area as intensive, if not of the of the city of Boston and of the Metropolitan area. Im­ same magnitude, as the Prudential Center in the Boston plicit in the enabling act is a mandate to counsel and spur and Albany Railroad yards. private corporations so that our free enterprise system will Appropriately, the Governor and Legislature require a provide efficient transportation into and out of report of progress each year. The following is the body Massachusetts. of the report for the fiscal year ended June 30, 1960:

The net revenue of the Massachusetts Port Authority for the fiscal year ended June 30, 1960 — after deduction of interest payable from revenue and after excluding net revenue from Port properties — was $2,060,928.70 Carl J. Gilbert William B. Carolan Vice Chairman Secretary-T reasurer

THE development of our system of government requires the creation of new cor­ porations to meet the needs of the times. The Federal government in the last few decades has delegated functional problems of our national society to new agencies. The State government in late years has followed a similar course of action. The Massachusetts Port Authority is meeting the challenge presented by the need for swift and efficient movement of people and goods in the Metropolitan area of Boston. The Massachusetts Port Authority is a trusteeship of seven citizens entrusted by our State government with responsibilities exercised within a corporate structure. The Massachusetts Supreme Court described this structure in the following words: “The Massachusetts Port Authority has no stockholders. No person can derive Philip H. Theopold O. Kelley Anderson a profit through its operations. Only the public can be benefited. The Authority therefore bears considerable analogy to a municipal corporation, although it can hardly be said to possess a territory of its own, and it exercises only limited govern­ mental powers . . .” The Authority is pleased to report that its net revenues are currently twice the interest requirement on its bonds. During the first fiscal year of operation, our bonds have been among the leaders in the revenue bond market. The fact that our bonds have been selling in a range generally between 104 and 105 is evidence of the confidence of investors in th,e Authority operation. We believe that our growth and our economic health will be reflected also in the satisfactions of our personnel and new transportation efficiency for Boston and the entire Commonwealth.

2 Nicholas P. Morrissey John S. Pfeil John F. O’Halloran, Executive Director

THE accomplishments of the Massachusetts Port Authority during the past fiscal year are evidence of the effectiveness of outstanding citizens in directing a business of public service. Also, these accom­ plishments are evidence of the effectiveness of our personnel in implementing policies of government- business cooperation. The highest commendation is due the employees of the Massachusetts Port Authority for their understanding and patience during a period when the staffs of the Port of Boston Commission, Mystic River Bridge Authority, and State Airport Management Board were merged into a new organization. Adjustments involving status, security, promotions, job classifications, and inter-division relationships have been accepted with the understanding that the continuing purpose of the Authority members and Executive Director is to build equitable security and opportunity. During the coming year, we shall continue our program of developing efficiency and mutual good will so that new and higher objectives may be reached.

Mystic River Bridge and Old Draw On Liverpool Run Worldwide Air Cargo Service

W w M Mystic River Bridge, Looking West

The Mystic River Bridge established a record volume of traffic for the fiscal year. A total of 20,744,116 vehicles passed over the bridge. This volume was not anticipated in engineering forecasts until 1963. A record volume for a single day, 74,970 vehicles, was accom­ modated on May 27, the Friday beginning the Memorial Day weekend. However, the two-lane connections with the Central Artery are bottlenecks for rush-hour traffic proceeding from the Mystic River Bridge in the morning and from the Central Artery at night. The situation is becoming increasingly dangerous. It wastes gaso­ line and people’s time. It hinders the free movement of commerce to and from the waterfront. It periodically halts the flow of traffic on arteries which have cost more than $100 million. In 1958, the Authority proposed a solution for this blight on Boston’s transportation system. The proposal suggested a system of off-ramps and on-ramps which would have not only relieved the clogging of the Central Artery and the Mystic River Bridge, but would have incorporated tie-ins with the proposed Inner Belt. This spring the Authority offered a broader theory of coopera­ tion. It pledged a substantial investment to help provide a traffic interchange over the Boston and Maine Railroad yards, near the North Station. It offered to cooperate with government and private agencies to develop this area at the mouth of the Charles River At Rate of 21 Million a Year into a complex of modern facilities for boating, for freight han­ dling, for bus transportation, for manufacture, and for a develop­ ment of fast commuter service which would coordinate railroad and rapid transit trains. The Mayor of the City of Boston recognized the value of these proposals for redevelopment of the North Terminal Area. He took the initiative and called a meeting of representatives of this Authority, the Federal Bureau of Public Roads, State Depart­ ment of Public Works, Metropolitan District Commission, State Department of Commerce, Massachusetts Turnpike Authority, Metropolitan Transit Authority, and the city governments of Cam­ bridge, Somerville and Chelsea. Considerable progress has been made on a policy and technical level in the committees appointed by the Mayor. It is to be hoped that despite changes on the executive level in several State agencies that cooperation will be continued and strengthened for the great benefit that can accrue through such a vitally needed cooperative planning effort so long awaited in the Metropolitan area. The Authority believes that nowhere on the Boston waterfront can more be done to expand the tax base of the city and eliminate wasteful traffic jams than in the dimensions where a vital railroad, a muddy waterway, and a poorly designed traffic connector repre­ sent either an opportunity to improve our transportation link to the north or a failure to learn from the mistakes of the past. Until the middle of the 19th century, some of the ships built in this area were earning more than their original cost in a single voyage out of Boston. Clipper ships carried food to the California gold miners, fur from our Pacific northwest to the merchants of China, and ice to India . . . In the Civil War, a total of 2,000,000 tons of American shipping was withdrawn from international trade routes to support the military effort, or was sold to foreign shipping lines to avoid the hazards of war. Our ships never recaptured our earlier position in foreign trade . . . Until recent years, the major effort of most United States com­ merce has been to utilize our rich natural resources and to sell the products of farms and factories to our expanding population. However, in Massachusetts and New England, our natural re­ sources, such as bog iron and lumber, were exhausted long ago. We have been importing raw material and fuel over low-cost ocean routes. Heavy inflow of cargo has made Boston an import port. This characteristic has been considered by many as a weakness caused by an imbalance of trade. Yet, the future holds a prospect for increasing waterborne im­ port volumes. They may well balance the high ratio of overland freight which moves into Boston as compared with that moving out of Boston. Westbound freight for trucking lines and railroads is in strong demand to reduce “dead-heading” of empty carriers. At present 40 percent of the freight car movement in the country involves the hauling of empty cars. A similar high percentage ob­ tains with long-haul trucks. Boston’s transportation stability may come from a new concept of balancing waterborne imports with overland exports by truck and rail. The Massachusetts Port Authority is applying research Orchard to Market, Via Boston to explore this opportunity. Seaport Promotion

Throughout the fiscal year our promotion force continued to Late in the fiscal year, the Public Relations staff and the Mari­ go into the field to spread the advantages of shipping via the Sea­ time Division organized a program of harbor tours. Most of these port of Boston. Reportable calls — meaning those related to direct were held aboard the M /V Kingfisher and involved a three-hour selling — totaled 2,937, a ten percent increase over the 2,651 survey of waterfront facilities. reported for the preceding year. Those calls were made throughout Among the groups afforded a waterside view of Port activities New England, the Provinces of Ontario and Quebec as well as and a promotional discourse over the boat’s amplifying system were: the States of New York, New Jersey, Ohio, Illinois, and the District Delta Nu Alpha Transportation Fraternity, Boston Chapter of .Columbia. Worcester Traffic Association The Authority Chairman visited Europe this summer for talks Boston General Agents Council with transportation officials in the northern tier of countries. These Eastern-Central Motor Carriers Association discussions provide a base for the research to determine where Foreign Trade Club, Worcester Chamber of Commerce Massachusetts Port Authority field offices should be established in Traffic Club of Springfield, Mass. Europe. Mr. Brest made an extended observation of the Port of Traffic Club of Providence, R. I. London where an Authority operation has been in existence since Traffic Managers of Greater Boston 1908. He also visited Southampton, Paris, Amsterdam, Rotterdam, Boston Real Estate Board Antwerp, Brussels, Zurich, and Copenhagen. Sales Executives Club of Boston The Executive Director and staff members are active participants T ransportation and Foreign T rade Division, in virtually every sizeable organization devoted to the transportation Greater Providence Chamber of Commerce interests of the Greater Boston area. The former is an officer in Springfield Export Managers Association many seaport organizations wherein lie the experience and ideas Representatives of chemical trade that mean much to Boston’s future. Representatives of wool trade Numerous speaking engagements were filled by staff members at Representatives of tea and coffee trades meetings of business and community groups. Of special importance In Washington, numerous meetings were held by the Authority’s were area meetings for transportation interests in Worcester and representative with Federal Government officials which resulted in Canada. shipments of surplus agricultural products through the Seaport.

Loading Spring Wheat for Turkey Harbor Tours for Businessmen Seaport Statistics Cargo handled through the Seaport of Boston, during calendar year 1959 totaled 21,112,000 short tons, some 1,739,000 tons greater than for the year 1958. Foreign import volume increased to 5,983,000 tons from the 4,696,000 tons of the prior year. Foreign export volume also in­ creased to 779,000 tons in 1959 compared with the 648,000 tons handled in 1958. Inward coastwise and intercoastal traffic, domestic traffic from other United States Ports to Boston, declined from 11,331,000 tons Japanese Compacts Under Cover in 1958 to 11,044,000 tons in 1959. However, outbound coastwise and intercoastal traffic experienced a slight growth to 1,183,000 tons from the 1,047,000 tons handled in 1958. The above figures amply illustrate that the waterborne com­ merce of the Seaport of Boston is largely inward. This movement comprises approximately 80 per cent of the total. It is in keeping with New England’s position as a terminal area. The railroads and longhaul motor carriers — as well as steamship lines — bring into New England much more freight than they take out. Rate Protection Over the years, failure to prevent the establishment of rail rate differentials unfavorable to the Seaport of Boston has been a major handicap to the commerce of this area. This year the Authority was successful in preventing the diversion of a sizeable share of Boston’s sugar traffic to the Port of Baltimore. Railroads serving that port had proposed increasing the rail rate differentials adverse to Boston from the usual 3c per hundred pounds to as high as 19c a hundred pounds. In regard to the -vitally important rate differential on Midwest traffic, the Authority’s Special Counsel presented final arguments before the Commissioners of the Interstate Commerce Commission. The Authority seeks elimination of the highly discriminatory differ­ entials on railroad rates whereby the railroads servicing Baltimore and Philadelphia enjoy rates 60c and 40c per ton, respectively, below the Boston rate on traffic to or from the Midwest. The climax of this case represented six years of effort and $75,000 of expense

8 Prospective Industrial Site for the Authority and predecessor agencies. It also represented a placement of piles ravaged by marine borers; of wharf deck plank­ major effort on the part of the local railroads, Greater Boston ing damaged by fungi rot; of 4,000 feet of fender system; and of Chamber of Commerce, Maritime Association of Greater Boston deteriorated concrete on the wharf apron of Shed No. 1. and other organizations. Should Boston be victorious in this en­ Deferred maintenance was also apparent at Commonwealth Pier deavor, a new era will commence in the history of the Seaport 5. This included the curtain walls at the end and face of the build­ of Boston. ing, upon which substantial repair and reconstruction consequently The Authority spearheaded opposition to a proposal by the East­ were required. The structural members enclosed within the curtain ern Central Motor Carriers Association that would have placed a walls were found to be deteriorated, necessitating replacement. loading charge of 13 or 16 cents per hundred pounds on goods The fire detection and sprinkler system were in no condition to moving via truck between Boston piers and the Midwest. As a protect this $15 million structure from fire. Rehabilitation of this result, the tariffs were suspended by the ICC. system has begun and will cost $140,000. For safety and for expeditious transfer of cargo between upper and lower levels of the pier, $40,000 is being spent on repairing Rehabilitation and modernizing five freight elevators. A program of extensive repairs and of hitherto deferred main­ Building columns at the pier have been jacked to relieve excessive tenance was begun as soon as the Seaport facilities came under the stresses due to differential settlement. The cost will be approxi­ control of the Authority. mately $190,000. Not only was maintenance postponed before 1959, but facilities New cargo doors along the 3,000-foot pier apron are being in­ worth many millions of dollars were not insured against fire loss. stalled on an alternate pattern. The doors are of a rolling steel-slat The Authority has obtained insurance coverage to prevent a disas­ type and will cost $120,000 installed. trous depletion of the capital investment which is being held for Replacement of the underground water supply system for fire the people of Massachusetts. protection will require an expenditure of $70,000. One of the first areas of neglect to be attacked was the substruc­ ture of piers. After detailed study, a $130,000 project for cathodic protection of steel piling was undertaken at Castle Island, Hoosac, Mystic, and East Boston piers. Piling had been corroded by electro­ lytic action. Oxygen is trapped against the surfaces of the piling by the rising tide and lowers the electrostatic potential of the steel. A galvanic cell is set up. Iron ions pass into the water when the current flows from the section of the piling with high potential to that of lower potential. At Castle Island, the lack of road maintenance had resulted in Boston Fire Department officials demanding improvements lest ap­ paratus be damaged responding to alarms in the area. Approxi­ mately $260,000 is being expended by the Authority for a new system of roads, for grading, for surface treatment of storage areas, and for rehabilitation of railroad track. Further rehabilitation at Castle Island includes wharf area and fender system projects costing $600,000. Underway are the re­ Rehabilitation — Commonwealth Pier 9 Intercoastal Shipping Seaport Development

Long plagued with stiff competition from the transcontinental During the postwar years, approximately $30 million of tax funds railroads in the pricing of its services, Luckenbach Steamship Com­ was invested in seaport facilities at Boston. pany was forced by financial reasons to sell 9 of its 14 vessels in Army Base, Commonwealth, Hoosac, Mystic, and East Boston the fall of 1959. With only 5 ships remaining in service, it was re­ Piers are among the most modern general cargo facilities along the quired to curtail service to a two-sailings-a-month basis. American coasts . . . Hoosac and East Boston Piers are served by The vessels usually brought 2,500 tons to Boston each week and one million bushel grain elevators. Also, the latter is equipped with took 1,500 tons back to the Pacific Coast. a $300,000 grain car dumper . . . Castle Island encompasses 100 The lifeblood of the service appeared to be the eastbound move­ acres, an area the size of a golf course. It is one of the largest open ment of California canned fruits and vegetables. The Interstate storage and covered transit facilities on the East Coast. Commerce Commission permitted the railroads to put into effect Along the 25 miles of inner harbor frontage are other efficient reduced competitive rates on canned goods despite the protestations facilities. However, there is a need for new and intensive use of of this Authority and many others. Luckenbach, although making waterfront land. Toward this end, the Authority has advertised the counter rate reductions itself, lost tonnage by the end of the advantages of industrial locations in the Seaport of Boston in the fiscal year. New York Times, Journal of Commerce, Chemical Progress, New Englander, Boston Business, and several newspapers in New England. Expanded Cargo Services Of vital importance to a seaport is improved service because, in Army Base the last analysis, shippers are buying services, not facilities. Fortunately, tonnage increases experienced during 1959 were associated with an increase in vessel activity. The Seaport of Boston had 2,466 vessels call in 1959 — an average of one ship arrival every three and a half hours. The year’s total represented an in­ crease of 97 vessels over the 2,369 that called in 1958. Worthy of note in regard to development of improved steamship services to various areas during the past fiscal year were the following: Mexico and Latin America — frequency increased Italy and Yugoslavia — more modern ships Red Sea Ports — frequency increased West African ports — new service The Massachusetts Port Authority cites these service develop­ ments to indicate the signs of vigor that augur well for the Seaport’s future. The Authority is not claiming credit for having improved steamship services to foreign ports but it feels that they should be weighed against the loss of intercoastal service.

10 Massachusetts Port Authority Port of Boston Imports Port of Boston Exports Total Port Trade (Short Tons) Leading Commodities (Short Tons) Leading Commodities (Short Tons)

1957 1958 1959 1957 1958 1959 Calendar Years 1957 1958 1959 4,933,014 4,968,620 5,982,687 Total Exports 1,423,496 552,550 779,893 Imports 4,976,415 4,968,620 5,982,687 Total Imports Exports 1,423,466 648,820 779,893 Petroleum Products 3,251,256 3,434,784 4,250,729 Grain 882,539 289,998 332,121 Total 6,399,881 5,617,440 6,762,580 Sugar 446,318 447,132 465,642 Iron & Steel Scrap 316,245 167,142 310,472 112,968 59,874 Paper Mfgrs. 11,508 11,294 13,524 Intercoastal Iron Ore 271,968 190,835 192,006 215,253 Chemicals 8,281 7,304 8,254 160,241 Gypsum In 188,584 202,784 6,924 Wood Pulp 91,187 77,186 105,921 Machinery & parts 6,656 6,723 Out 60,453 51,463 48,158 49,174 52,832 68,602 Rubber Scrap 6,349 3,363 3,020 208,399 Wood (all grades) Total 249,037 254,247 5,146 Rubber, Crude 46,678 45,239 30,128 Wood Pulp 5,932 4,259 5,401 3,390 5,338 C o a s t w is e Iron & Steel Prods. 46,457 66,988 139,839 Wool Mfgrs. 4,770 Lumber 42,975 38,256 72,031 Non Metallic, Minerals/ Mfgrs. 3,885 4,594 In 11,362,876 10,391,179 10,884,252 27,562 21,404 35,373 Paper, Newsprint 3,558 2,128 928 Out 1,043,797 996,561 1,134,954 Salt 22,740 19,922 20,022 Syn. Rubber 2,826 1,907 640 Total 12,406,673 11,387,740 12,019,206 Cocoa Beans Latex 19,587 14,215 16,202 Leather & Mfgrs. 2,692 2,416 3,002 SUB TOTAL 19,055,591 17,259,427 18,990,185 Hides, Skins, Pelts 17,368 17,657 32,087 Animal Prod., inedible 2,460 4,728 21,212 Coffee 16,226 14,794 17,083 In t r a p o r t Sisal 16,137 14,682 23,583 In 412,055 738,732 700,469 Molasses 15,800 29,170 16,578 1,421,435 Out 1,102,777 1,374,172 Bauxite 14,430 14,741 14,999 Total 1,514,832 2,112,904 2,121,904 Fruits & Veg. Canned 14,477 18,569 12,324 Vehicles & parts 13,232 23,528 27,675 TOTAL 20,570,423 19,372,331 21,112,089 Chemicals 13,814 11,096 21,404

Commonwealth Pier East Boston Piers Castle Island Terminal

11 sJ

The Jet Age has been ushered into Logan International Airport at the same time that the Authority had been attempting to correct mistakes of the past. The Airport now accommodates the arrival or departure of 62 pure jet passenger planes each week. An indication of concurrent problems occasioned by earlier de­ sign or construction at the Airport may be gained from the fact that a foundation examination for a second floor addition to the Terminal Building disclosed that computed allowable footing capacities were exceeded. These problems of reconstruction of the Terminal Building have resulted in increased expansion costs of more than $250,000. While the plans for remodeling the passenger areas were being completed under unexpected difficulties, the volume of passengers was increasing rapidly. A total of 2,932,231 passengers enplaned or deplaned at the Airport during the fiscal year, an increase of 13 percent over the preceding year. Cargo volume at the Airport increased 16 percent over-all, to 57,436,001 pounds. International cargo skyrocketed 79 percent as the big jet aircraft increased the cargo space available. Pure jet aircraft operated between Logan International Airport and the following cities: Los Angeles, San Francisco, Chicago, Baltimore/Washington, Paris, London, Shannon, Düsseldorf, Ham­ burg, San Juan, Milan, and Rome. With the advent of the passenger jet aircraft, the Authority was faced with the need for tremendous expansion in many directions. Runways, taxiways, and aprons had be strengthened. Auto parking facilities had to be increased. The freight terminal had to be ex­ panded. There was an acute need for new maintenance area, and navigatiorlal aids had to be attuned to accelerated aircraft speeds. Coping with the Jet Age was the first order of business. Terminal Reconstruction

Hundreds of hours have been devoted by Authority members, square feet of floor area. staff personnel, and consultants to the planning and negotiations Plans are being completed for spacious North and South Ter­ leading to a $6 million reconstruction of the passenger terminal. minals which will entail the most extensive reconstruction of the Four finger piers will be under construction this October. They existing terminal area. The North Terminal will be occupied by are designed to permit 49 plane positions in close proximity to Northeast Airlines, Trans World Airlines, and United Air Lines. sheltered access. Initial construction will be one story, but founda­ The total area, including concessions, chapel, and medical clinic, tions will be designed for the addition of a second story when will cover 109,285 square feet. demand requires. The tenants of the South Terminal will be American Airlines, Each finger pier will be air-conditioned and will include a lounge Eastern Air Lines, National, Allegheny, and Mohawk Airlines. In­ where more than 100 passengers can await the boarding of their cluded in the 128,395 square feet of this terminal will be 21,430 plane without adding to the congestion of ticketing areas. square feet for concessions. Other space will be provided for air Work is scheduled to begin on the $1.5 million dollar Interna­ charter in this terminal. tional Terminal this winter. The reconstructed terminal will include The new terminals will have two deluxe restaurants with window 98,544 square feet which is more than three times the present area. walls facing the airfield, four coffee shops, and numerous other The International departure area will include 27,414 square feet, concession areas to provide the food, goods, and services for pas­ and the international arrivals area, a total of 36,305 square feet. senger volumes which are expected to triple and quadruple within The finger pier to serve international passengers will have 34,825 a relatively short span of years.

~ ~~. T^TERNATIOIJAL-u . ARRIVALS VwNd " X j i r — .

Perspective of South Terminal Future International Terminal i L <> ; . : i .* ' : r, « .

■ r U i f i n 1 i ! ^ 1 ! 1“ ! 1! J 1 ’ < M ii 1(1 •J—____

Hangar for Eastern Air Lines

Hangar Construction The Northeast Airlines hangar was constructed at a cost of $2.5 and contingency reserves for specified projects. More than half of million. It will permit maintenance under cover for three of the the total amount was earmarked for installation of a second In­ airline’s Gonvair 880 jet aircraft now on order. strument Landing System. The $4 million Eastern Air Lines hangar was 35 percent com­ Also scheduled under the grant were the reconstruction, leveling pleted at the end of the fiscal year. This structure will occupy a and strengthening of Runway 15-33, the filling of a localizer site 13-acre site, which is larger than the area of downtown Boston at the northwesterly end of the runway, and preparation of a glide bounded by Washington, Winter, Tremont and School streets. The path site on the southeasterly end of the runway. interior will be large enough to permit two DC-8 jet aircraft and Another project under the grant — reconstruction of 50 acres three prop-jet Electras to be serviced at one time. of apron area to accommodate the 150-ton jets — was 49 percent completed by the end of the fiscal year. This project, together with relocation of a taxiway near the Eastern Air Lines hangar, will cost $1.5 million. Field Improvements Preparation of a 20-acre hangar site in the North Hangar Area, Early in the fiscal year, the Federal government made available entailing removal of an entire hill, was 35 percent complete. Re­ to the Authority a grant totaling $1,691,000 for improvements to moved in the process was a total of 158,000 cubic yards of earth — Logan International Airport. This was the largest such grant in which is comparable to the amount of earth removed in the con­ the Airport’s history. It represents 50 percent of estimated costs struction of the Sumner Tunnel.

14 Private and Executive Aircraft

Plans were formulated this spring for a modern aircraft service center, to accommodate the rapidly growing fleet of corporate and private aircraft. Last year, 11,750 such planes utilized the existing facilities at Logan. The total was lower than last year but an in­ crease of 3,000 in the past five years. The center will be located in the general area of the old terminal building, adjacent to the original Airport hangar line. It will pro­ vide facilities for parking, storage, tie-down, fueling, repair, and maintenance. Supplies and parts will be displayed for resale. Bag­ gage handling and ground transportation will be situated close at hand. The aircraft ramp will be flood-lighted for night-time operation. The tentative plans for the terminal include passenger and crew lounges, a business conference room, and a reception counter.

Auto Parking

Reconstruction of the auto park was begun shortly before the end of the fiscal year. Upon completion, there will be 2,120 public parking spaces available including 290 metered spaces. This com­ pares with the previous capacity of 1,028. Total cost of the project will be $493,000. Included in the project will be encasement of steam and utility pipes in concrete to sustain the weight of fill and of vehicles. The surfacing will require 70,200 square yards of asphaltic concrete. Studies by the Authority show that the new parking area will be adequate for the immediate future. Provisions for second level parking will be studied in relation to the projected increase in passenger use of terminal facilities. Auto Park Reconstruction

15 Airport Tours

The Public Relations staff inaugurated guided educational tours in cooperation with airlines and other agencies at Logan Inter­ national Airport. All details of the tours from the initial request to the distribution of literature for youngsters to take home are han­ dled by the Public Relations staff. During the past fiscal year, a total of 4,600 tour participants was accommodated in 120 groups. Special tours were organized for visiting dignitaries and others interested in particular aspects of airport operations. An example of the latter was a tour of the New England Chapter of the Ameri­ can Materials Handling Society. This group observed the handling of air cargo and received additional information in an audio-visual presentation. Air Traffic Cooperation Committee

In order to bring the experience of technical and administrative specialists to bear on the problem of noise control over residential areas near the Airport, an Air Traffic Cooperation Committee was established. Included in the membership were representatives of the Authority, Federal Aviation Agency, Massachusetts Aeronautics Commission, Air Transport Association, and Air Line Pilots Asso­ ciation. All complaints were forwarded to this committee. Information on the recommendations of the committee was trans­ mitted to residents in nearby areas. These recommendations resulted in a request by the Authority that a Visual Glide Path Indicator be installed at the Airport by the Federal Aviation Agency. Hanscom Field A total of approximately 10,000 persons was employed during the past fiscal year at Air Force installations at Hanscom Field in Bed­ ford. During the year, the area became the major Air Force center for research and development in electronics under the Command Control Development Directorate. Pilot’s-Eye View of Logan International Airport

16 Because of a decrease in training flights and interceptor defense LOGAN INTERNATIONAL AIRPORT flights at the field, civilian plane movements are now 63 percent of the annual total. During the past fiscal year, military aircraft move­ Logan International Airport ments totaled 93,660 and civilian, 103,635. Only three years ago, (July 1, 1959 through June 30, 1960) civilian plane movements were 43 percent of the total. Travel by business executives in corporate aircraft has been a significant fac­ % of tor in the increase of non-military flying. Inc. 1959-1960 1958-1959 1957-1958 To improve the safety of operations on the instrument runway, or Dec. In Out Total Total Total the Air Force requested the Authority to acquire 25 acres for a 3,000-foot centerline-flasher approach light system which the Fed­ eral Aviation Agency had agreed to install. This was done and DOMESTIC construction is expected to be completed in February, 1961. Planes + 1 1 % 52,940 52,978 105,918 95,698 97,538 Passengers + 1 3 % 1,393,755 1,411,041 2,804,796 2,476,405 2,289,790 *Mail + 1 2 % 4,517,527 4,763,167 9,280,694 8,250,359 7,701,104 ‘ Cargo + 1 4 % 4,271,125 31,203,806 55,474,931 48,611,578 48,086,377

INTERNATIONAL

Planes + 3% 4,075 4,077 8,152 7,934 7,108 Passengers + 1 2 % 67,237 60,198 127,435 114,223 96,451 ‘ Mail - 6 % 47,699 104,985 152,684 162,500 144,986 ‘ Cargo + 7 9 % 895,170 1,065,900 1,961,070 1,093,730 974,262

T O T A L D O M E S T IC & INTERNATIONAL

Planes +10% 57,015 57,055 114,070 103,632 104,646 Passengers + 1 3 % 1,460,992 1,471,239 2,932,231 2,590,628 2,386,241 ‘ Mail + 1 2 % 4,565,226 4,868,152 9,433,378 8,412,859 7,846,090 ‘ Cargo + 1 6 % 5,166,295 32,269,706 57,436,001 49,705,308 49,060,639

ITINERANT

Planes - 7 % 5,879 5,879 11,758 12,632 10,730 Passengers - 5 % 25,497 21,902 47,399 49,668 43,845

‘Volume in pounds.

Traffic Police of the Air

17 STATEMENT I I VAAÎ I VI, POSi riOA As at June 30, 1960 ASSETS

C ash...... $ 814,857 Investments — U. S. Government obligations (market value $ 2 5 ,8 7 2 ,3 3 2 )...... 25,458,141 Accounts receivable...... 479,885 Accrued interest...... 311,307 Other current assets...... 537,387

Investments in facilities: Facilities completed . . 42,527,803 Construction in progress 8,424,159 Cost of financing . . . 2,029,522 52,981,484 $80,583,061

LIABILITIES

Accounts payable and employees’ deductions . 106,326 Accrued interest on revenue bonds (series A) . 852,031 Accrued expenses and deferred income . . . 141,448 Retained on contract payments...... 498,777 Revenue bonds (series A ), 4%%, due October 1, 1998 ...... 71,750,000

Fund balances (Note B) 7,234,479 $80,583,061 AlVAtYSIS OF CHAJVGFS FV FUAD BALANCES For the Fiscal Year Ended June 30, 1960

Fund balances June 30, 1959 ...... $3,520,765 Revenues (per accompanying statement of net revenues)...... 7,665,787 Income from investments in U. S. Government obligations...... 1,027,950 Federal Aviation Agency grants in aid of construction...... 358,230 Contributions by lessee in aid of construction...... 150,000 Proceeds from insurance claims, n e t ...... 5,988 Current expenses (per accompanying statement of net revenues)...... (2,944,014) Cost of maintenance and repairs...... (368,550) Interest on revenue bonds (series A ) ...... (3,408,364) Interest on bonds issued for paying cost of initial improvements...... 1,226,687 Fund balances June 30, 1960 (per accompanying statement of financial position) (Note B) $7,234,479

T h e accompanying notes are an integral part of these financial statements. STATEMENT Oil

For the Fiscal Yea'(

Mystic River Airport Port Total R e v e n u e s : Bridge Properties Properties Tolls and fees...... $3,761,916 $ 791,592 $ 173,355 $4,726,863 R e n ta ls ...... 6,818 1,039,244 1,034,084 2,080,146 Concessions...... 850,089 850,089 O t h e r ...... 2,091 5,292 1,306 8,689 Total revenues . 3,770,825 2,686,217 1,208,745 7,665,787

C u r r e n t e x p e n s e s : A d m in istra tio n ...... 122,379 329,961 346,019 798,359 O p e ra tio n ...... 264,297 680,990 114,734 1,060,021 \ M a in te n a n c e ...... • • 179,277 401,004 183,794 764,075 Insurance ...... 70,352 178,712 72,495 321,559 Total current expenses . 636,305 1,590,667 717,042 2,944,014 Net revenue for the p erio d ...... $3,134,520 $1,095,550 $ 491,703* 4,721,773 Add — income from operating fund investm ents...... 12,296 Net revenue and income from investments...... $4,734,069

* Refer to opposite page

20 VET MEVTE3VXTE»

ïnded June 30, 1960

•None of the revenue from Port Properties for the fiscal year ended June 30, 1960 is available for debt service. Under the Enabling Act the revenue from Port Properties, after certain specified deductions as defined therein, is to be paid to the Commonwealth of Massachusetts (Note B). Beginning on July 15, 1961, the interest and principal requirements for all bonds issued for paying the cost of improvements of Port Properties is to be deducted. The amount to be paid to the Commonwealth is determined annually on July 20 based on cash receipts and disbursements of the Port Properties for the preceding fiscal year, and for the fiscal year ended June 30, 1960 is as follows:

C a s h r e c e i p t s : Revenues c o lle c te d ...... $1,266,167

C a s h disbursements : Current expenses p a i d ...... • 912,797 Cost of renewals and replacements and of acquiring and installing new equipment . . . 138,051 1,050,848 Net revenue from Port Properties, as defined in the Enabling Act, for the fiscal year ended June 30, 1960 ...... 215,319 Interest collected by Trustee through July 20, 1960 on funds in vested...... 10,440 Balance held by Trustee on July 20, 1960 to be paid to the Commonwealth of Massachusetts • $ 225,759

T h e accompanying notes are an integral part of these financial statements.

I MOTES TO FIlVAMfCIAE STATEMENTS June 30, 1960

N o t e A — A c c o u n t i n g P r i n c i p l e s : newals and replacements of property are to be charged against the Reserve Maintenance Fund. The Massachusetts Port Authority is a public instrumen­ The costs of making investigations, studies and sur­ tality created by an Act of the Legislature of The Common­ veys authorized by the Enabling Act are to be charged wealth of Massachusetts, effective June 21, 1956. The against the Research Fund. Authority has no stockholders or equityholders. Revenues The costs of enlarging, extending, reconstructing or and certain other receipts of the Authority are required to improving any facility of the Authority are to be be disbursed for specific purposes in accordance with the charged against the Improvement Fund. provisions of the Enabling Act and the Trust Agreement Bond discount and cost of financing incurred in con­ with its bondholders. Revenues are deposited currently in nection with the issuance by the Authority of its revenue the revenue fund and the balance at the close of each month bonds are to be charged against Investments in Facilities. is disposed of by transfer, in amounts and in the sequential At June 30, 1960 no amount has been charged order prescribed by the Trust Agreement, to the following against Investments in Facilities for completed port funds: Operating Fund, Port Properties Fund, Interest and facilities acquired February 17, 1959 (refer to Note B Sinking Fund, Reserve Maintenance Fund, Research Fund — Contingent Liabilities and Commitments). and Improvement Fund. The Enabling Act and the Trust Agreement provide The accounting principles followed by the Authority are that no allowance for depreciation be made. However, in accordance with generally accepted accounting principles deductions from revenues are to be made to provide for or with the principles described below which were estab­ redemption of bonds and, through the Reserve Main­ lished by the provisions of the Enabling Act and the Trust tenance Fund, to provide for major replacements of Agreement: property. Payment of interest on revenue bonds is provided in

part from the Construction Fund and the remainder N o t e B — C o n t i n g e n t L i a b i l i t i e s a n d C o m m i t m e n t s : from revenues. Payments to The Commonwealth of Massachusetts for The costs of maintenance and repairs of an extra­ Port Facilities: ordinary nature or not recurring annually and of re­ Under the Enabling Act the Authority is required to pay

22 Ly b r a n d , R o s s B r o s . &. Montgom ery

A c c o u n t a n t s a n d A u d i t o r s NEW YORK Detroit Birmingham PHILADELPHIA CLEVELAND DALLAS CHICAOO CINCINNATI HOUSTON BOSTON ROCKFORD TULSA BALTIMORE ST. LOUIS SAN FRANCISCO WASHINGTON LOUISVILLE LOS ANOELCS PITTBBUROM HARTFORD SEATTLE RORTLANO C o o p e r s &. Ly b r a n d IN AREAS OF THE WORLO annually to the Commonwealth within the first ninety days OUTSIDE THE UNITEO STATES after the close of each fiscal year certain specified amounts Massachusetts Port Authority in consideration for the port properties acquired from the Boston, Massachusetts Commonwealth on February 17, 1959. Such payments are contingent upon the cash revenues from the port properties We have examined, the accompanying financial for the preceding fiscal year exceeding certain related cash statements (pages l8 to 23) of the Massachusetts Port Authority as at June 30.» I960 and. for the expenditures, as defined in the Enabling Act, and are to fiscal year then ended. Our examination was continue until the Authority has paid to the Commonwealth made in accordance with generally accepted au­ a sum also defined in the Enabling Act. At June 30, 1960 the diting standards, and accordingly included such sum so payable to the Commonwealth aggregated tests of the accounting records and such other $16,752,021 and this contingent liability is not reflected in auditing procedures as we considered necessary the accompanying financial statements. in the circumstances. Reimbursements to the Commonwealth under State R e ­ In our opinion, said statements present tirement System: fairly, in conformity with accounting principles The employees of the Authority were required, under the described in Note A to the financial statements, Enabling Act, to become members of the state retirement the financial position of the Massachusetts Port system and the Authority will be required to reimburse the Authority at June 30, i960, the net revenues and Commonwealth for a proportionate share of any amounts the changes in fund balances for the fiscal year then ended. expended by the Commonwealth on account of the Authori­ ty’s employees. The liability of the Authority under this Boston, Massachusetts provision is not determinable prior to the dates on which August 15; i960 the respective employees retire and no provision therefor is included in the accompanying financial statements. Contractual Obligations for Construction: Contractual obligations for construction were approxi­ mately $5,000,000 at June 30, 1960.

23 1

The traditional advantages of the Seaport of Boston are enhanced today by hand-in-hand association with other viuil transportation services directed by the Massachusetts Port Authority. This new concept of co-ordinated facilities stream­ lines the flow of goods through Boston by land, sea, and air . . . saving world shippers time — and money.

D uring an average day, more than 58,000 vehicles pass over the Mystic River Bridge, more than 54,000 tons of .cargo arc loaded or unloaded on the Boston waterfront, and more than 400 aircraft land or take off at Logan International Airport. The Legislature authorized the Massachusetts Port Authority to ‘‘investigate the necessity for additional facilities for the development and improvement of commerce in the city and in the metropolitan area surrounding the city.” Now that we have underway our $23 million program of improvements for Logan International Airport and the Port of Boston, we arc ready to expand our trusteeship for the benefit of more thriving commerce. The Massachusetts Port Authority is proud to announce that it has begun allocation of funds for research on basic transportation problems of Greater Boston and the Commonwealth. We are at work toward solutions. When you sell EUROPE!

» -- / ) _ r M il •• E p h r a im A. B rest, Chain/ian

All air cargo operations are concentrated at MULTIPLE, Logan International Airport. MONEY-SAVING Airport and seaport terminals are close to superhighways. SERVICES Shipside rail connections at every major pier. — Bulk Industries Cut Costs on Waterfront S No lighterage necessary in the seaport: less extra handling, IN BOSTON WHEN YOU SHIP less damage, less breakage, less pilferage. VIA BOSTON Only seven miles from open sea to major terminals.

MASSACHUSETT!

Ephraim A. Brest, Chairman Carl J. Gilbe! Philip H. Theopold O. Kelley An Atlantic ports — and closer to the raw material reservoirs

ig in the Port c e advantage:

and air transp In Massachusetts today... The coordinated I Port o f Port Authorit; OSTON has a new meaning ries and other

The Massachusetts Port Authority offers a new concept of co-ordinated sea, air and land facilities, planned and organized particularly to meet the all-inclusive require­ ments of world trade. Boston, New England and the nation now have new * Th er e will b e '45 fòsse SAI LINGS W.THE PbRT °t C horizons — new markets — new problems in'the area ,A JET hanga r , Being Built at 8 LOGAN AlRTORT tv MASS. FORT THIS YEAR -T O fW S RNJGlWt of world trade. We recognize our responsibility in this AUTHORITY S Bermuda t d Istanbul CASTLE ISLAND expanding development. In co-operation with the World HYDROFOOVKSElS 1Ö HOUSE 20 SUPERMARKETS 11,11, IlllYl AI I \i Trade Center, we arc, therefore, aiding those who arc W ill WEIGH INITIALLY. OVER 75 TONS 19.6 MILLION VEHICLES ftSSEC AND HAVE A RAN(jt ®f 8 0 0 WILES V « , v ^ -H C M y SfiC Rit turning their minds to markets overseas. - BRIDGELAS1 i Tvv.n Ä .fT 'Y r—— rl TWO YEARS Some 20 transAtlantic planes land or take off at Logan OF sue International Airport each day. And sailings arc sched­ IBbS L — estim uled from the Port of Boston to or from 295 world points.

We have compiled an index of foreign air service at I.ogan International Airport and a list of ports of COMMONWEALTH PIER rail of vessels sailing from Boston. This material is available to you upon request. STDN- WHERE COLONISTS 10VERCPAFT 'rauliTSUPEgSOMlC 80 t y r A iRCRAFTW ILL FLV ONCE DUMPED TEA INTO THE. n^ V will Skim " h e waves ' HARBOR IMPORTED 2 5 OOT0NS )8 • Washington telephoi AT 9 0 KNOTS BETWEEN BOSTON^ 220 PASSENGERS 8 0 ST0 H- OF IT LAST YEAR OTHER COASTAL PORTS______LOS ANGELES in I'Yt HOURS MASSACHUSETTS Port AuíJtMÜy 7^ PORT PORT 141 MILK STREET. BOSTON 9. MASSACHUSETTS 141 MILK STREET 14- COURT SQUARE Boston telephone HUbbard 2-2930 files from open BOSTON 9. m ss HUBBARD 2- 2930 AUTHORITY BOSTON.MASS. £ A f f e t t e 3-7930 AUTH0RI New York telephone ENterprise 6208 r ... Airport and üCàtu; Boston Telephone HUbbard 2-2930 141 MILK STREET, BOSTON 9, MASSACHUSETTS Manhattan Telephone ENterprise 6208 Washington Telephone District 7-8343