We show in column 2 the cash realized from the sale of maintenanceof-ways scrap, which is mostly rail; column 3, dismantling of equipment, locomotives, freight cars and passenger cars, $89 million. And then over in the other half of the sheet it shows the salvage value of materials that we were able to realize out of this abandonment program in our regular maintenance program. It amounted to $46, in rail, rail that we could take up and use elsewhere, and in part from freight cars largely, which is trucks and wheels and brakes and so forth. So in those two programs alone, liquidation of assets, and cash realized from the dismantling program, amounted to $241 million in this period. We haven't got that as a fallback as we go from here on. Liquidation of assets, yes, we have some, and are trying to dispose of them, but not in this kind of money; and the same on dismantling. We are now down to a pretty low figure on equipment, and the picking up of track from here on is going to be very difficult. Page 11 represents the gross capital expenditures. Gross capital expenditures for road and equipment compared with traffic-Years 1929-56 1 Total transportation service, passenger trains and freight trains. Conversion based on Interstate Commerce Commission Railroad Construction Indexes for group III, which covers geographical area which includes Pennsylvania RR. operations. Includes Pennsylvania RR. and leased lines. Senator SMATHERS. May I ask a question before you leave that page? I haven't looked at these figures very closely, but would you say that what profit that you have been realizing up until 1956, when you had one would you say that the profit that you have been realizing prior to that time resulted from a great extent from the dismantling program? Mr. SYMES. Oh, yes. That is shown, really, in column 3 on page 10, which is the dismantling of equipment. Senator SMATHERS. In other words, in order to show a profit, you had to dismantle the railroad in order to get it? Mr. SYMES. Well, this is a cash realized from the dismantling. It is capital scrap. It does not get into the income accounts. But is is cash, I don't mind telling you, that provided the down payment for the new equipment we got in this period, which is generally 20 percent. Page 11 merely indicates the capital expenditures over the period of years and then reduce to constant dollars. And then as you will note in column 7, our expenditures are pretty low as compared with the period, even much lower than during the depression years of the 1930's. And columns 9 and 10 merely indicate the traffic volume, and capital expenditures should go somewhat in hand with traffic volume, which we are certainly not doing, particularly in the last 4 years. Page 12 gets into the deferred maintenance in our track with respect to rail, ties, and other materials. |