Imagens das páginas
PDF
ePub

Mr. KIRK. Mr. Chairman, I best can explain it this way. This railroad cannot go on indefinitely the way it is and there must be a reorganization, or something drastic happen here.

Now, in the reorganization there will be presented claims against this property and among the claims will be the per diem claims of the foreign railroads whose cars we use and for which we are paying lesser sums than they are claiming.

Now, this amounts to a very substantial amount of money. The treatment of those claims in any plan of reorganization is something for the future to decide, but they are in the magnitude, the claims, themselves, and this is a very approximate figure, approximately $15 million.

Senator PASTORE. There was a controversy over the increase of the per diem rate and the New Haven has been paying the old rate and that suit is pending. And if the court decides against the New Haven, it would necessarily mean that you would have to come up with the difference?

Mr. KIRK. Mr. Chairman, the claims arising subsequent to the bankruptcy will occupy a different category than the claims arising prior to the bankruptcy.

Senator PASTORE. But have the trustees been paying on the old rate

[ocr errors]

per diem?

Mr. KIRK. We have not been paying the full rate claimed by the foreign railroads. But our income accounting is charged with the full per diem charges. This is the only way we can properly express our true income situation.

Senator PASTORE. That is since you took over as trustees. Was that the rule before?

Mr. KIRK. I believe it was, sir.
Senator PASTORE. All right, sir.

Senator LAUSCHE. On that point, you stated a moment ago that your cash position has been adversely affected by about $2 million for one of the years.

Mr. KIRK. In the last year, we lost $2.3 million in cash; yes, sir.
Senator LAUSCHE. That is in 1964?
Mr. KIRK. Yes, sir.

Senator LAUSCHE. Now, your fiscal statement contained on exhibit 3 shows a net deficit of $15 million.

Mr. KIRK. Yes, sir.

Senator LAUSCHE. That means that in this $15 million are many of these deferred debts

Mr. KIRK. That is correct. Taxes chargeable that are not being paid, the per diem claimed, and all items properly charged on a sound accounting basis are reflected in that income account.

Thus, while we eliminated cash attrition prior to 1964 from an operating standpoint, we were actually creating new deferred obligations, most of which one day must be paid as a priority administration charge.

Our trustees' certificates are such an example. Realistically and financially, every day of operation under present conditions, and since July 1961, has deprived the creditors of an additional part of their security.

Senator PASTORE. To what extent?

Mr. KIRK. To the full extent of the losses reported year to year.

Our net income deficit statistics, which we have furnished to the committee indicate the scope of the adverse impact on our creditors.

The trustees have along been aware, and have so stated, that no reorganization would be possible without public underwriting of passenger service. Mr. Smith has testified to the frustrations in this respect in the last 3 years.

Any program that merely keeps the New Haven going on a cash basis without paying costs on a business basis, will merely prolong the bankruptcy until the property literally disintegrates at the expense of the creditors. Judge Anderson has, of course, made clear that the law cannot permit this to happen.

Recently, for the first time, we have seen in our area an approach by a public authority which recognizes the essentials of our problem. I have reference to the Massachusetts Bay Transportation Authority, an agency created in August 1964.

Last week, the trustees agreed in principle with the authority to enter into a contract under which the New Haven will furnish service on its five Greater Boston suburban lines on a basis which will fairly pay the cost of the service, together with a return on equipment investment and a moderate management fee.

While specific provisions remain to be negotiated, it would appear that our deficit in this portion of our service would be substantially eliminated.

A further important aspect is that the authority will proceed to determine what portions of the service should be continued in the public interest and eventually operated directly by the authority.

In the meantime, the trustees can and will proceed to seek legal authority to discontinue the service as being a responsibility of the railroad, in recognition of public assumption of its responsibility for it.

As a final word to this statement, I would like to say this. The members of the committee may have heard the charge that the New Haven's passenger service is operated inefficiently.

Among railroad people, considerable weight is given to the statistical result known as the operating ratio and that is shown in the exhibit No. 8 submitted to you. I have shown New Haven's passenger service operating ratio for all years from 1947 through 1963.

The operating ratio, of course, does not reflect the impact on the passenger service of taxes and rents.

Let me state this for the record. Year after year, the New Haven Railroad has one of the lowest passenger operating ratios of any railroad in the country.

Thank you, Mr. Chairman.

(Exhibits follow :)

EXHIBITS TO STATEMENT OF WILLIAM J. KIRK, TRUSTEE, NEW YORK, NEW HAVEN

& HARTFORD RAILROAD Co., DEBTOR

EXHIBIT 1

Condensed operating income account, passenger and allied services

[blocks in formation]

Condensed operating income account, freight service

[merged small][merged small][ocr errors][merged small][merged small][ocr errors][merged small]

Condensed operating income account,

[blocks in formation]

1954. 1955. 1956. 1957 1958. 1959. 1960. 1961. 1962 1963. 1964.

$149, 986, 923 $121, 470, 321 155, 118, 869 127, 036, 004 162, 450, 211 131, 813, 650 164, 056, 355 135, 383, 552 149, 550, 961 125, 435, 142 144, 335, 105 124, 968, 623 134, 044, 436 121, 063, 593 127, 202, 495 122, 456, 057 126, 176, 221 115, 835, 382 122, 787, 724 110, 466, 380 121, 597, 371 115, 204, 331

$7, 418, 853 8, 739, 455 11, 894, 998 11, 705, 944 11, 756, 329 11, 738, 351 12, 174, 340 8, 271, 841 8,767, 358 8, 398, 087 9,030, 688

Expenses

Expenses,
taxes, and
net rents

Net railway

operating income (+)

or deficit (-)

$62, 880, 422
66, 331, 276
68, 696, 419
70, 216, 453
64, 607, 521
61, 918, 448
59, 166, 474
57, 963, 186
55, 894, 828
54, 971, 759

$75, 046, 555
76, 800, 414
82, 041, 401
84, 245, 865
78, 480, 129
75, 661, 643
72, 494, 404
68, 433, 324
65, 905, 171
64, 420, 213

--$10, 144, 919
-14, 164, 637
- 14,833, 727
-15, 224, 559
-10,878, 256
-12, 644, 078
-13, 257, 653
--12, 293, 203
-10, 899, 553

-8,587, 416 -11, 556, 000

Expenses

Net rents

Net railway operating income (+) or deficit (-)

$57, 912, 595
59, 959, 252
62, 367, 811
64, 443, 221
60, 010, 185
62, 164, 677
60, 997, 236
63,588, 898
59, 103, 949
54, 746, 785

$64, 931, 650
71, 744, 388
77, 032, 712
78, 660, 404
74, 015, 840
76, 890, 745
77, 160, 900
77, 347, 726
70, 864, 738
67,630, 929

+$19, 432, 656
+19, 987, 869
+17, 394, 386
+15, 618, 177
+7, 128, 755
+3, 478, 959
-3, 296, 820
-7, 201, 234

-594, 923 -1,524, 120 -5,500,000

Rents net

debit

Net railway

operating income (+) or deficit (-)

Net income (+) or deficit (-)

$11, 848, 805 +$9, 248, 944 13, 611, 071 +5, 732, 339 16, 205, 732 +2, 535, 831 16, 623, 710 +343, 149 16, 215, 037 -3,855, 547 16, 843, 419 -9, 215, 288 17, 431, 834 -16, 625, 331 16, 051, 892 -19, 577, 295 13, 087, 919 -11, 514, 438 14, 013, 393 -10, 090, 136 14, 418, 614 - 17,056, 262

+$9,090, 635 +4, 246, 534

+261, 704 -2, 363, 702 -4, 276, 639 -10, 816, 003 -14, 698, 640 -19, 549, 689

-12, 741, 495 -12, 264, 275 -16, 262, 688 125th Street Station)

[blocks in formation]

1954.
1955
1956.
1957
1958.
1959
1960
1961
1962
1963.
1964 estimated

+$19, 432, 658 -$10, 144, 919
+19, 987, 869 -14, 161, 637
+17, 394, 386 - 14,833, 727
+15, 618, 177 -15, 224, 559
+7, 128, 755 -10,878, 256
+3, 478, 959 -12, 644, 078
-3, 296, 820 13, 257, 653
-7, 201, 234 -12, 293, 203

--594, 923 -10, 899, 553
-1, 524, 120 –8,587, 416
-5,500,000 – 11, 556, 000

52. 2 70.9 85. 3 97.5 152.6 363.4

[blocks in formation]

Passengers into and out of New York City (Grand Central Terminal and

Year

Passengers

Year

Passengers

1924 1929. 1934. 1939 1944. 1945 1946. 1947 1948 1949 1950 1951

Thousands

17, 739
17, 736
11, 653
17, 309
29, 940
30, 158
29, 535
27.864
26, 370
24, 262
23, 595
23, 704

1952
1953
1954
1955
1956
1957
1958
1959
1960
1961
1962
1963

Thousands

24, 455 24, 698 24,839 25, 296 26, 003 25, 757 24, 596 23, 384 22, 387 20, 796 20, 023 19, 214

EXHIBIT 7

Year:

1924.
1929.
1934.
1939
1944.
1949..

Total revenue passengers carried

Millions | Year-Continued

76. 8 1954.
54. 4 1959.
29. 8 1960.
36. 2 1961
68. 3 1962.
46. 7 1963..

Millions

45. 8 34. 3 30. 8 28. 2 26.8 25. 9 Miles per

[blocks in formation]

Railroad

Commuter passengers

carried

1963 passenger revenue

Jersey Central.
New Haven.
Long Island
Southern Pacific.
Milwaukee
Chicago Northwestern.
New York Central.
Erie-Lackawanna.
Pennsylvania
Burlington.
Boston & Maine.
Illinois Central
Rock Island
Reading
Staten Island R.T.

Thousands

4, 285 13, 926 53, 622 5, 640 4,933 19, 598 16,897 11, 500 18, 938 7, 521 4, 704 17, 491 5, 051 5, 677 3, 237

Thousands

$3, 486 12, 495 40, 637 2, 691 3, 478 13, 890 12, 416

7, 625 11, 646 3, 595 2, 360 8, 675 2, 732 2, 546

552

EXHIBIT 10

Comparison passengers and revenue

Year

Index

Commutation passengers

1947. 1948. 1949 1950. 1951. 1952 1953 1954. 1955 1956. 1957 1958 1959. 1960 1961 1962. 1963

Thousands

30, 646 29, 717 26, 974 25, 353 24, 698 26, 433 27, 736 28, 958 29, 422 30, 236 30, 195 26, 506 23, 446 20, 195 17, 738 14, 342 13, 926

100.0 97.0 88.0 82.7 80.6 86.3 90.5 94.5 96.0 98.7 98.5 86.5 76.5 65.9 57.9 46.8 45.4

passenger

27. 1 25.4 24. 7 24. 1 22.5 21.4 20.6 19.9 19.3 17.3 15.8 15.2 15,1 14. 1 7.9

Index

Commutation

revenue

Thousands

6,994 7, 903 7, 880 8, 204 8, 432 9, 103 9, 722 10, 567 11,420 12, 695 14, 318 15, 360 14, 464 14, 467 14,599 12, 270 12, 495

100.0 113.0 112.7 117.3 120.6 130.2 139.0 151.1 163.3 181.5 204.7 219.6 206.8 206.8

8.7 175.4 178.7

46-135

65-

10

« AnteriorContinuar »