This website has been archived from TrainWeb.org/southerntier to TrainWeb.US/southerntier.

ERIE - LACKAWANNA MERGER STUDY

Duplicate Freight Train Service

Study III

In a number of instances the Erie and the Lackawanna operate freight train service between the same major terminals or terminals serving the same area, and, in many cases, the schedules are fixed and the trains are operated whether or not full tonnage is available. In the event of merger, the total tonnage handled by the two roads separately would, in many instances, permit the operation of fewer but heavier trains on present schedules. Minimizing the operation of light trains would result in an estimated saving of $685,349 annually.

The trains operated by the two roads in duplicate freight train service were analyzed in detail for the test weeks of January 8-14, April 8-14, July 15-21, and October 14-20, 1956, to determine the number of trains run, the tonnage handled, and the locomotive units required to handle them. The number of trains and locomotive units which would have been required under merged operation were then determined, based on thesame service requirements and maintaining the same time schedules as are now being operated. The savings to be expected as a result of merger were determined by comparing the two operations, and the results of the four test weeks were projected to an annual basis. The duplicate service which was analyzed on the Erie and Lackawanna and the estimated savings are summarized in Schedule Aattached. 

                                     Schedule A

                       Duplicate Freight Train Service

                 Summary of Savings on Erie and Lackawanna

            E S T I M A T E D     A N N U A L    S A V I N G S

                                                        Diesel
                    Round   Actual    Train             Unit        Crew
                    Trips   Round     Miles    No of    Miles       Wages        Crew
                    Elimi-  Trip      Elimi-   Diesel   Elimi-      Per          Wage
      District      nated   Mileage   nated    Units-   nated       mile (1)     Saving
-----------------------------------------------------------------------------------------------
    Hoboken or        546      376    205,296      3    615,888     $0.8670(2)   $123,078
      Croxton-                                                       1.0238(3)      64,845
      Binghamton
    Binghamton-       273      404    110,292      3    330,876      1.0238        112,917
      Buffalo
    Hornell-          273      180     49,140      4    196,560      1.0432        56,959(4)
      Buffalo

    Scranton-
      Binghamton
    Avoca-
      Susquehama      364      124      45,136     4    180,544      0.8864        64,530(4)

        Totals      1,456     1,084   409,864     14  1,323,868                   $422,329

        (1) Crew wages based on less than 80 cars.
        (2) Crew wages for five-man crew east of Scranton.
        (3) Crew wages for six-man crew west of Scranton.
        (4) Crew compensated for basic day in each direction.

    Recapitulation - Estimated Annual Savings

        Crew wages..................................        $422,329
        Payroll taxes..............................           47,639

                Total...............................        $469,968

        Diesel Unit Miles Eliminated ....... 1,323,868

        Locomotive repair costs at 14.810 per unit mile .... 196,065
        Payroll taxes ......................................  19,316

                Total ...................................   $215,381

                Estimated Total Savings ..................  $685,349