I v - The P&WV Hi-Line

- :2 ­7) ~. Iron ore traffic futures.A. Import iron ore will begin to move in volume to U. S. Steel Corporationplants in the Pittsburgh district during 1954. The volumeestimated is in excess of 1,000.000 tons. This will replace aportion of the Ex-Lake iron ore normally handled by the Bessemer &Lake Erie R.R.All of the import ore coming to the Pittsburgh district will move viathe ports of Balti more aDd Philadelphia. Our competition for thistraffic is the PRR. the B&O and the Pittsburgh & Lake Erie. Froma physical standpoint, our facilities to deliver iron ore in volumeto the Steel Corporation are far superior to those of our competitorsand it is not physically possible for the competing lines toimprove their tacilities for handling iron ore in this district.Because of our advantages, we expect to receive the lion's shareof the import iron ore scheduled to move into Pittsburgh.8) ~~ Is there any cbance of the belt conveyor being built?A. This idea is probably dead. Vene~ela ores will be competitive withMesabi ores as far west as Youngstown. The conveyor belt is dependentupon a 2-way move -- ore in one direction and coal in theother. If it was ever feasible, the feasibility disappears witha l-way movement.~) ~. Control of expenses in relation to volume of business.,~. The officers of the railway are in daily contact with the-Traffic,operating and Engineering Departments. Traffic trends are watchedclosely. Because of our size, we have push-button control ofoperating expenses and are able to keep them in line with revenues. (The degree of control can best be illustrated by our performance I1n 1?52 when the steel strike took place. Maintenance of Way ex­penses were reduced from $119,000 in April to $67.000 in May, June and July. Maintenance of Equipment was reduced from $150.000 in April to $118.000 in May and $95.000 in June and July. 10) ~. What is the outlook for business?A. Like all railroads, the P&WV is dependent in large J6rt upon generalbusiness activity for traffic. It is also tied in and heavily d~pendent upon the fortunes of the steel industry. The volume oftraffic for the coming 6 to 12 months will probably be somewhatlower than 1953 volume -- perhaps 5%. It should be remembered thatsteel operations measured by percentage capacity are down far morethan steel produced because of the increase in rated capacity overia year ago •. ,I11) ~. Would a merger of the 0&0 and the New York Central have aIlT effecton the P&WV?A. None.\I