March-April, 1961 - Milwaukee Road Archive

A brief account of the highlights of The Milwaukee
In the face of a general recession which sharply reduced
railroad revenues in 1960, The Milwaukee Road successfully
effected a balanced reduction in expenses and builr
securely on a strong foundation for the future. Improvements
were introduced to provide the public with the best
in service, and the property was maintained in condition
to take full advantage of the anticipated business upturn.
The actual extent of the decline in earnings and revenues
came as a disappointment. Revenues dropped $11,678,923
to $230,362,902 in 1960 from $242,041,825 in 1959. Net
income was $1,323,063 last year compared with $5,875,176
in the preceding year.
The outlook for 1961 is more favorable. There is already
indication that housing starts will be up, and we
can reasonably expect mOre normal movements of lumber
and other forest products. In this freight category, which
is of major importance to The Milwaukee Road, Our 1960
revenues were down 16.2 per cent from 1959.
Other unfavorable factors in 1960 were the slump in
the iron and steel industry, resulting in decreased revenues
from the smaller traffic in many manufactured products;
and the disappointing showing of the grain movement.
The latter situation developed, despite a good grain crop
in Milwaukee Road territory, because of a decline in
government grain releases, particularly in the last months
of the year.
Improvement in any of these three major freight
categories could result in a welcome upturn in 1961. A
very substantial volume of small grains and corn remains
in farm and country elevator storage on The Milwaukee
Road for eventual movement to market. The Milwaukee
Road is in a strong position to take advantage of the better
business conditions now generally predicted for the months
On the average 20,229 people were employed by
the railroad during 1960; thei r wages and salaries
amounted to $121,135,807; the railroad also contributed
$9,969,699 for railroad r"etirement taxes and
unemployment insurance. The cost of health and
welfare benefits for employes amounted to $1,646,241.
During 1960 the railroad's investment in property
Road's operations in 1960 prepared for employes
ahead. The improvement program of the last several years
has modernized plant and equipment. We have the tools
to render improved service to shippers and to meet competition.
Also noteworthy has been the aggressiveness of the campaign
to develop new freight traffic and win back business
from competing forms of transport. Many of these activities
should make themselves felt in still greater measure during
1961.
Joint merger studies with The Rock Island Lines, begun
in 1959, were continued and intensified in 1960. Toward
the end of the year, however, it became evident that effecting
a merger of the two systems would be a timeconsuming
project in the face of the unforeseen obstacles
that had been encountered.
Since then, merger discussions have been initiated between
the managements of The Milwaukee Road and the
Chicago and North Western Railway. As of the date of this
report the roads have not yet reached an agreement.
Railroads continue to form the backbone of the common
carrier system. Their ability to move large tonnages of
raw materials and manufactured goods at low cost, on
equal terms to all shippers, is necessary if we are to keep
this continent one great mass market.
In light of these facts, there is urgent need to review
public transportation policy. We must face the reality
that no form of transport today has anything like a monopoly,
and regulations based on conditions of half a century
ago are dangerously out of date. Instead of artificial
restrictions, transportation companies should be given
every encouragement to use the most modern devices and
equipment for moving goods and people, by whatever
combination of methods is efficient.
used in transportation service. including materials
and supplies and cash, after full al10wance for depreciation
amounted to $782,598647, representing an
in estment of $38,687 for each employe's job. The
railroad company's return on its investment in 1960
amounted to 1.23 per cent.
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