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ERIE - LACKAWANNA MERGER STUDY
Equipment Pools-Operation and Repair Facilities-Marine Equipment (Freight)
Study VII-M
Erie and Lackawanna both operate and maintain marine equipment to handle car float and lighterage traffic in New York Harbor, and serve many of the same points. In the event of merger, the combined operation would permit a reduction in the number of trips, heavier loading of lighters, and a decrease in units of equipment and maintenance facilities. The estimated saving would be $900,647 annually.
Data with respect to equipment and facilities were collected and operations were analyzed for the week of May 1 to 7, 1957, on the basis of the following assumptions:
1. All float traffic would be handled at the present Erie car float facility at Jersey City.
2. All coal, grain and cement would be handled at the present DL&W facility at Hoboken.
3. All westbound and selected eastbound covered lighterage would be handled at the present Erie Pier 8 at Jersey City.
4. All other eastbound covered lighterage would be handled at DL&W Piers 3, 4, 7 and 9 at Hoboken.
5. All open lighterage would be handled at the DL&W facilities at Hoboken.
On the above basis it was determined that two tugs and 21 lighters would be retired. Repairs would be concentrated in the Erie Jersey City and the DI&W Brighton marine repair yards and the DI&W Hoboken facility would be abandoned. Two modern electric float bridges would be added to the Erie float facility at Jersey City and one of the dry docks at the DL&W Brighton repair yard would be lengthened to handle Erie steel car floats which are presently being repaired on an outside contract.
A summary of the estimated savings is shown on Schedule A attached.
Schedule A
Equipment Pools-Operation and Repair Facilities-Marine Equipment
(FREIGHT)
Summary of Savings
Erie
DL&W Jersey
Equipment Hoboken Brighton City Total
A. Net Cash Realized From
Merger
1. Salvage from Property
Retired
Shop Machinery $ ----- $ 391 G --- ---- $ 391 G
Floating Equip.
Tugs - 2 @
$9,000 each 18,000 G --- 18,000 G
Lighters - 21 @
$200 each 4,200 G --- --- 4,200 G
Total Salvage $22,200 G $ 391 G --- --- $22,591 G
2. Cost of Property
Acquired --- --- $8,000 L --- 8,000 L
3. Non-Recurring Income
Tax Saving --- 1,567 G --- --- 1,567 G
4. Total Net Cash
Realized $22,200 G $1,958 G $8,000 L --- $ 16,158 G
B. Expenses
1. Tugboat Operation
Labor $269,724 G
Material and
Supplies 61,724 G
2. Lighter Operation
Labor 90,792 G
3. Floatbridge Operation 50,236 G
4. Supervisory Forces 56,048 G
5. Shop Expense 6,863 G
6. Maintenance of
Floating Equip.
Labor (Running
Repairs) 23,543 G
Material (Running
Repairs) 6,945 G
Labor (Heavy
Repairs) 163,071 G
Material (Heavy
Repairs) 45,377 G
7. Outside Contracts
Eliminated $14,286 G 14,286 G
B. Normal Maintenance
Facilities Retired --- $ 285 G --- ---
Facilities Acquired --- --- $ 165 L ---
Net Normal
maintenance $ 285 G $ 165 L --- 120 G
9. Depreciation
Facilities Retired 1,142 G --- ---
Facilities Acquired --- --- 141 L
Equipment Retired $14,665 G --- ---
Net Depreciation $14,665 G $1,142 G 141 L $ 15,666 G
10. Total Expenses $804,395 G
C. Payroll Taxes, Vacations,
etc.
Supervisory $ 5,605 G
Non-Supervisory 89,839 G
Total Payroll Taxes,
Vacations, etc. $ 95,444 G
D. 5% on Net Cash Realized 808 G
Total Net Savings $900,647 G
