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ERIE - LACKAWANNA MERGER STUDY

Foreign Line Freight Charges on Company Material

Study X

A certain amount of so-called "company material" required for use on the railroads embraced in the proposed merger in purchased off-line and commercial freight charges are paid to all foreign lines for handling the freight.

In the event of merger, the following savings would be realized:

Foreign line freight charges paid to lines not included in the merger, on freight which could be handled by the merged company - a saving = $23,775

Estimated cost of handling such company freight on lines of the merged company - an added expense = $3,601

Estimated Total Net Savings $20,174