DEPARTMENT OF COMMERCE

Transcription

1 950 Water-line tonnage: Merchandise Bulk Cargo ton miles Railroad tonnage Net loss PROGRAM HIGHLIGHTS 048 actual 65,854,435, 630, 955, 93, ,505 $2,308, 40 DEPARTMENT OF COMMERCE INLAND WATERWAYS CORPORATION 949 estimate 53,800, 586,00 2,075, 542, , 600 $, 606, PURPOSE AND FINANCIAL ORGANIZATION 950 estimate 53,800,586,00 2,075, 542, , 600 $2,35, The chartering of the Inland Waterways Corporation in 924 was an outgrowth of the need for inland water transportation during the First World War. By the Federal Control Act of March 2, 98, the Director General of Railroads was authorized to purchase, construct, and operate transportation facilities on inland waterways. In accordance with this authority, the Director General commandeered substantially all privately owned vessels on the inland waterways and initiated a program for the construction of new floating. Under the terms of the Transportation Act of 920, the functions exercised by the Director General of Railroads were transferred to the Secretary of War, who conducted the operations through the Bureau of Inland and Coastwise Waterways Service. When, by 924, it had become evident that this operation could not be effectively carried on by a typical Government administrative bureau, the Inland Waterways Corporation was created by act of Congress, June 3, 924 (47 U. S. C. 5). The Corporation was operated under the direction and supervision of the Secretary of War until its transfer to the Department of Commerce in 939. The Corporation's chief purpose and objective is to demonstrate the feasibility of water transportation on the inland rivers and to extend the benefits of this service to the people of the United States. The Inland Waterways Corporation accordingly provides the most complete common carrier barge service offered on the Mississippi, Illinois, Missouri, and Warrior Rivers. All types of freight, except livestock and perishables, are transported on 3,300 miles of inland rivers with 24 boats and 268 barges. Operations are conducted through numerous private terminals as well as through 2 general merchandise facilities. A railroad switching facility operating between Port Birmingham, and Ensley, Ala., serves the industrial area in and near Birmingham, Ala., and provides a connecting link between the Corporation's facilities and trunk line railroads serving the southeast. The Corporation executes the stated policy of Congress to provide transportation services on the Mississippi, Illinois, Warrior, and Missouri Rivers until (a) there shall have been completed navigable channels as authorized by Congress; (6) terminal facilities shall have been provided on such rivers reasonably adequate for joint rail and water service; (c) there shall have been published and filed under the provisions of the Interstate Commerce Act, as amended, such joint tariffs with rail carriers as shall make generally available the privileges of joint rail and water transportation upon terms reasonably fair to both rail and water carriers; and (d) private persons, companies, or corporations engage in, or are ready to engage in, common carrier service on such rivers. The Corporation has no specified term of existence. Enabling legislation provides, however, that as soon as the foregoing conditions shall have been met the facilities of the Corporation may be sold or leased to private enterprise when such transfer can be made to the best advantage of the Government (49 U. S. C. 53). The Corporation is managed by the usual general officers appointed by the Secretary of Commerce who also selects the chairman and six members of an advisory board. Statutory provisions require that board members be chosen from "individuals prominently identified with commercial or business interests in territory adjacent to the operations of the Corporation." Each member serves for 5 years with no compensation except reimbursement for travel on Corporation business. The Corporation's originally authorized capital stock of $5,000,000 was increased in 928 to $5,000,000 (49 U. S. C. 52). Of this amount $4,000,000 has actually been appropriated through 949. The Corporation has no authority to issue bonds or to incur other long-term debts. Paid-in surplus of $2,298,89 represents the 924 appraised value of and facilities turned over by the War Department when the Corporation was chartered. Merger with the Corporation of the Warrior River Terminal Company, a wholly owned subsidiary formerly operating the railroad-switching facility between Port Birmingham and Ensley, Ala., was approved by the Interstate Commerce Commission on April 3, 948. Dissolution of the Terminal Company was approved on June 2, 948, by the State of Alabama, under whose laws it was incorporated. ANALYSIS OF BUDGET PROGRAM BY MAJOR ACTIVITIES The budget program of the Inland Waterways Corporation for the fiscal year 950 consists of four categories: () Common carrier operations, (2) capital replacement program, (3) lending activities, and (4) administrative expenses. The level at which the various activities of the Corporation were conducted during the fiscal year 948 and the projected level for the fiscal years 949 and 950 are shown in the statement of sources and application of funds. COMMON CARRIER OPERATIONS Budgetary requirements of the Corporation vary markedly with the effect produced on revenues and operating plans by the usual hazards and uncertainties of water transportation. Ice conditions, floods, high and low water, are some of the natural unpredictable factors encountered, for example, while the poor condition of floating and terminal, freight car shortages 303

2 THE BUDGET FOR FISCAL YEAR 950 and work stoppages also disrupt operating plans and reduce revenues. The Budget estimates are predicated on water-line traffic of 2,7,900 single count tons in 949 and 950, an increase over the 2,05,484 tons transported in fiscal year 948. Revenue freight tonnage shown below by divisions contains duplications inasmuch as some traffic moves over more than one division. Division Lower Mississippi River Upper Mississippi River Illinois River Missouri River Warrior River Warrior Terminal. 948 actual Tons, 536, , ,878 69,595 27, , estimate Tons, 577, ,237,090 7,479 27, , estimate Tons, 577, , 237,090 7,479 27, , 600 Conservative estimates place revenues in 949 and 950 at $9,3,800 and $9,096, respectively, as compared with expenses of $0,720,300 and $,42,000. The estimate of $,000,000 for subscription to capital stock in 950, which will exhaust the existing statutory authorization of $5,000,000, will be reserved for working capital requirements to meet the anticipated loss of $2,35, in 950. With the favorable decision rendered by the Interstate Commerce Commission in the long contested joint bargerail rate case assuring the extension of barge service to shippers removed from the banks of the rivers, the outlook for increased merchandise traffic is brighter than at any time in the Corporation's history. Negotiations to implement the decision have been started with the railroads. Despite the favorable prospects, however, merchandise traffic is estimated at 53,800 tons for 949 and 950, as compared with actual traffic of 65,854 tons in 948. Chief responsibility for the failure of merchandise traffic to recover in the postwar period is attributed to the poor service available with existing deteriorated floating. Cargo damage resulting from leaky barges and erratic service resulting from frequent lay-ups for repairs tend to alienate shippers. Bulk traffic continues to move at satisfactory levels and offerings have exceeded the Corporation's ability to handle such traffic with the and power available. Expedited service is now provided for this type of traffic through fast tows limited to bulk cargo. A separate local service continues to reach all points and to handle all types of traffic. Because of the Corporation's precarious financial condition, certain operational changes have been effected to reduce expenses and conserve funds. Operations have been discontinued at Baton Rouge, La., until more suitable and a more practical terminal are available. Missouri River traffic has been suspended north of Kansas City and limited to monthly service to that point. Temporary embargoes are in effect on less than bargeload traffic to, from, and via upper Mississippi River ports. Shipments to and from Greenville, Miss., and Helena, Ark., have also been limited to bargeload freight and cotton. Terminal facilities recently leased to experienced private operators at 0 locations are expected eventually to reduce terminal handling charges to the Corporation through expanded local use of those facilities. CAPITAL REPLACEMENT PROGRAM Successful operation of the Federal Barge Line is almost impossible with existing deteriorated and obsolete^floating. Until modern is available to offset increased operating costs that have been characteristic of river operations everywhere, the prospect of large annual losses will continue. Retirement of inoperable, moreover, will rapidly curtail operations generally. Frequent repairs to towboats and barges resulting from advanced deterioration already produces serious delays in moving traffic. Legislation will be requested, therefore, to increase the Corporation's capital stock to provide funds for a minimum rehabilitation program. An appropriation of $2,- 000,000 will be required in fiscal year 950 to begin the program. Included in this program will be sufficient towboats and barge capacity of the same type as the recently commissioned integrated tow to permit full economic operation of that innovation in river transportation. Cost data collected on the one integrated tow unit now in regular service following experimental operation for several months indicate fulfillment of design expectations. The integrated tow's potentialities can be realized, however, only when sufficient units are in operation to provide full service, including sufficient barge capacity to shorten turn around time for the towboats. Other capital replacements include complete conversion of three small steam towboats to Diesel power, two in fiscal year 948 and one in 949. Completion of radiophone installations on all boats will permit closing of the Memphis radio station this year. The establishment of shop and store facilities at St. Louis is also scheduled for 949. The $200,000 estimated for capital improvements in 949 will be limited to minimum replacement needs. Present estimates of working capital requirements for 950 preclude any provision for capital improvements without funds provided by an increase in capital stock. LENDING ACTIVITIES The Corporation is authorized to make loans to States, municipalities, and transportation companies that will contribute to the improvement of transportation facilities along the inland waterways (49 U. S. C. 4). Loans to the cities of Memphis, New Orleans, and Kansas City, Mo., were outstanding on June 30, 948, in the total amount of $207,593. No new loans have been granted since 935 nor are any contemplated for fiscal years 949 and 950. Payments on outstanding loans of $3,056 in 948 included full settlement of the Kansas City debt. Repayments are estimated at $98,743 in 949 and $20,000 in 950. The remaining balance due on the loan to the city of Memphis will be repaid in 949. ADMINISTRATIVE EXPENSES Administrative expenses cover the general supervisory and supporting staff engaged in over-all administration of the program carried on by the Corporation. Since the Corporation is subject to the regulations of the Interstate Commerce Commission, administrative expenses for water and terminal railroad operations for 950 will be those set forth under the title "General expenses" in the Commission's uniform system of accounts for carriers by water. Consolidated administrative expenses of the Corporation and the Warrior River Terminal Company were $433,75 in 948, exclusive of reimbursements. Comparable Corporation expenses in 949 and 950 are estimated at $ and $542,000 respectively. Within-

3 950 BUSINESS-TYPE BUDGETS INLAND WATERWAYS CORPORATION 305 grade promotions account for increased requirements in EFFECT ON GOVERNMENT BUDGET Since the Corporation maintains checking accounts with private banks, the only effect of its operations on the Government Budget will be an expenditure by the Treasury in fiscal year 950 of $,000,000 for the purchase of capital stock. OPERATING RESULTS Revenue in fiscal year 948 was $8,296,626 as compared with expenses of $0,605,027, resulting in a net loss of $2,308,40 for the year. A small increase in tonnage handled over 947 volume and increased rates (following those granted the railroads), raised transportation revenues from $6,59,279 in 947 to $7,34,367 in 948. The gains, however, were more than offset by increased transportation expenses which rose from $5,765,202 in 947 to $6,929,273 in 948. Advancing vessel fuel costs alone accounted for $666,349 of the increase, with a total cost in 948 of $,56,480, as compared with $895,3 in the previous year. Increasing supply prices and the expenses of handling the increased volume of freight were chiefly responsible for the remainder of the increase. Maintenance expenses, at a high level in 947 reflecting progressive floating deterioration, also offset gains in revenue with an. increase to $,638,24 in 948 as compared with $,424,072 in 947. Relatively favorable operating results for the first four months of the current fiscal year, accounted for by heavy bulk traffic movements, are reflected in the present estimates. Allowance for the usual winter traffic slump, however, and a conservative estimate of future traffic based on present quality of service and available are also taken into consideration in estimating the long term situation,. FINANCIAL CONDITION Operations were relatively successful until 939. Important statutory demonstration functions, for example, were performed largely with funds made available from income derived from regular transportation services. War and postwar traffic dislocations, coupled with inability to offset increased operating costs characteristic of maritime operations generally with increased operating efficiency that adequate could provide, have reduced* earned surplus of $2,65,34 at December 3, 938, to a deficit of $4,539,770 at June 30, 948. Estimated operating losses will increase the deficit to $8,46,770 at June 30, 950. The Corporation possessed $50,000 in Government securities at June 30,948, which will be disposed of during the current fiscal year. Government securities in the amount of $2,238,060 were liquidated in fiscal year 948 to meet operating losses and to provide such capital improvements as the first unit of the integrated tow and conversion of two small steam towboats to Diesel power.

4 THE BUDGET FOR FISCAL YEAR 950 STATEMENT A COMPARATIVE STATEMENT OF SOURCES AND APPLICATION OF FUNDS [Fiscal years ending June 30 f 948,949, and 950] 948 actual 949 estimate 950 estimate FUNDS APPLIED To acquisition of assets: Expansion of plant and (schedule C-l) To operating costs (excluding depreciation and other charges not requiring funds): Direct operating cost (schedule B-l). Administrative expenses, net.. To chartering operations, Reconstruction Finance Corporation.. To increase in working capital -. $9,083, ,75 $2,378,67 9,56,945 7,569 >,542,770 53,30 494,000 35,300 $200,000 0,25, ,343 $0,244,920 34,980 35,640 $0,82,900 Total funds applied..,902,68,262,543 0,82,900 FUNDS PROVIDED By realization of assets: Repayment of principal of loans.. Sale of plant and Sale of investments By income: Operating income Interest income from U. S. Government securities- Recovery of amounts written off in prior years By reimbursements for chartering operations, Reconstruction Finance Corporation.. By appropriation from U. S. Treasury: For purchase of capital stock By decrease in working capital 3,056 98,235 2,238,060 8,282,027 0,684 3,95 2,467,35 8,296,626 7,569,3,35 98,743 50,000 9,3,300 48,743 9,3,800 2,000,000 20,000 9,096, 20,000 9,096,,000, ,400 Total funds provided..,902,68,262,543 0,82,900 EFFECTION THETGOVERNMENT BUDGET General and special account expenditures: Purchase of capital stock of the Corporation.. $2,000,000 $,000,000

5 950 BUSINESS-TYPE BUDGETS INLAND WATERWAYS CORPORATION 307 STATEMENT B COMPARATIVE STATEMENT OF INCOME AND EXPENSES [Fiscal years ending June 30,948,949, and 950] 948 actual 949 estimate 950 estimate Income: Transportation revenue Revenue from terminal operations Rent revenue Interest income on U. S. Government securities.. Profit on investments sold Adjustments for year afeecting prior periods Other -. $7,34, , ,553 0, ,95 25 $8,039, ,00 483,300 $8,069, ,00 438,000 Total income.. $8,296,626 $9,3,800 $9,096, Expenses: Direct operating expenses: Maintenance (schedule -).. Transportation (schedule B-l) Traffic. Insurance... Operating rents Taxes - - Audit of accounts. Administrative expenses, net-...,638,24 6,929,273 96,368 23,544 63,590 22,33 0, ,75 9,083, ,75,697,570 7,293,580 37,620 74,020, ,600 52,300 22,700 (0 494,000 35,300 9,595,900,805,70 7,884,900 9,800 78,450, ,600 52,300 2, (0 506,360 35,640 0,279, ,000 Total expenses before depreciation, losses and charge-off s Depreciation and amortization (schedule C-2) Charge-offs, for retired, in excess of related depreciation reserves.. 60, ,645 9,56,945, 590,00 5,000 0,25, ,00 590,00 0,82, ,00 Total expenses Net income (or loss ( )) for the year. 0,605,027-2,308,40 0,720,300 -,606,,42,000-2,35, ANALYSIS OF DEFICIT Deficit at beginning of fiscal year Net income (or loss ( )) for the year (above). Adjustment, paid-in surplus J Adjustment, amortization of plant $8,92,04 2,308,40 4,300,69 260,904 $4,539, 770,606, $6.46,270 2,35, Deficit at end of fiscal year.. 4,539, 770 6,46,270 8,46,770 Included in administrative expenses. 2 Restatement of amounts previously deducted from appraised value of.

6 THE BUDGET FOR FISCAL YEAR 950 STATEMENT C COMPARATIVE STATEMENT OF FINANCIAL CONDITION [As of June 30,947,948,949, and 950] 947 actual 948 actual 949 estimate 950 estimate ASSETS Cash: On hand and in banks Investments: XJ. S. Government securities - - Loans ieceivable: Loans to aid States, municipalities, etc $,342,378 2,288, , 649 $,469,473 50, ,593 $,000,000 08,850 $88,850 Accounts receivable: Due from Government agencies Due from others 4, ,72 64,68 790, , ,000 Total accounts receivable 70, , , ,000 Accrued assets: Interest on Government securities Commodities, supplies and materials 9,299 38, , , ,000 Land, structures and (schedule C-l) Less: Reserve for depreciation (schedule C-2) 2,00,074 4,044,245 3,70,954 3,86,37 3,360,954 4,446,47 3,360,954 5,036,57 Net land, structures, and 7,956,829 9,309,583 8,94,483 8,324,383 Deferred and undistributed charges: Prepayments Undistributed debits 6, ,227 24,466 33,05 25,000 50,000 25,000 50,000 Total deferred and undistributed charges. 252, ,48 75,000 75,000 Total assets 3,70,876 2, 589,425,348,333 9,738,233 LIABILITIES Accounts payable: Due Government agencies - Due others 9, ,780 6,502,724, , ,499 Total accounts payable....., -, Accrued liabilities: Taxes Trust and deposit liabilities Deferred and undistributed credits: Deferred credits Undistributed credits 99,60 9,78 8, ,935 6,904,886,006 20,506, ,793 20, ,599 5,85 00, , ,499 73,35 00, ,000 Total deferred and undistributed credits 354,839 82, , ,000 Total liabilities -,364,960 2,83,006,96,44 90,84 CAPITAL Paid-in capital: Capital stock... Paid-in surplus..- 2,000,000 7,998,020 2,000,000 2,298,89 4,000,000 2,298,89 5,000,000 2,298,89 Total paid-in capital Earned surplus (or deficit ( )) 9,998,020-8,92,04 24,298,89-4,539,770 26,298,89-6,46,270 27, 298,89-8,46,770 Total capital,805,96 9,758,49 0,5,99 8,836,49 Total liabilities and capital 3,70,876 2,589,425,348,333 9,738,233

7 950 BUSINESS-TYPE BUDGETS INLAND WATERWAYS CORPORATION 309 SCHEDULE B-l DIRECT OPERATING EXPENSES [Fiscal years ending June 30, 948, 949, and 950] Maintenance expenses: Towboats Barges - - Railroad ways and structures Railroad S uperintendence Other.- Transportation expenses: Operation of vessels: Wages of crew - Fuel Food Superintendence Other - - Total operation of vessels Operation of terminals: Contract handling Wharf labor - -~ - Stevedores, foremen, and clerks Salaries, agents, clerks, and attendants.. Tugs and lighters, operations Superintendence Other. - Total operation of terminals Operation of railroad: Station service - - ~ Yard enginemen and motormen Other yard employees. Yard switching fuel Other yard expenses Operating joint yards and terminals Other -.. Total operation of railroad. Loss, damage and injury -.-. Total loss, damage and injury Total transportation expenses-- Audit of accounts Traffic expense: Traffic expenses - Insurance expense Operating rents -- Taxes Depreciation and amortization Charge-offs for retired, in excess of related depreciation reserves. Total direct operating expenses. i Included in administrative expenses. 948 actual $784,77 335,23 53,63 35,275 99, ,020, 638,24, 762,988,56, ,760 2, ,938 4,05, , ,82 56,433 93,22 290,374 5, , 203 2,556,809 7,492 7, ,598 3,339 2,339 5,040 49,603 2,276 99, ,694 6,929,273 0,000 96,368 96,368 23,544 63,590 22,33 60, ,645 0,7, estimate $828, ,000 55,000 35,000 97, ,,70,200 2,025,000,75, ,000 7, ,400 4,950 4,556,400,06,700 43, 50, ,000 94,000 07, 220, ,700 2,443,650 7, 8, ,000 4,000 2,400 5,00 47, , ,530 2,970 20, 7, 33, ,020,880 85, ,600 52,300 22, ,00 5,000 0,9, estimate $878, 430,000 55,000 35,000 00,70 306,,808,800 2,26,000,88, ,000 23, ,700 4,950 4,777,700 2,75,400 45,900 45,600 9,200 96,600 33,020 95,250,880 2,794, 850 7, 8,000 26,000 4,000 2,400 5,00 47,650 20, ,530 2,970 2, 7,904,700 78,450,550 90, ,600 52,300 2, 590,00 0,870,000 SCHEDULE B-2 COMPARATIVE STATEMENT OF INCOME AND EXPENSES BY DIVISIONS [Fiscal years ending June 30,948,949, and 950] MISSISSIPPI RIVER DIVISION Total maintenance expenses- Income: Transportation revenue Revenue from terminal operations Rent revenue - - Interest income Profit on investments sold. - Adjustments for year affecting prior periods Other Total income Expenses: Direct operating expenses: IV! aintenance Transportation Traffic Insurance Operating rents.. Audit of accounts. Taxes Total expenses before depreciation, losses, and charge-offs Depreciation and amortization Charge-offs for retired, in excess of related depreciation reserves- Total depreciation, losses, and charge-offs Total direct operating expenses Administrative expenses. Total administrative expenses Total expenses Net income (or loss ( )) WARRIOR RIVER DIVISION Income: Transportation revenue Revenue from terminal operations. Rent revenue. Interest income Profit on investments sold. Adjustments for year affecting prior periods Total income Expenses: Direct operating expenses: Maintenance. Transportation Included in administrative expenses. 948 actual $6,874,444 90,7 370,692 8, , ,447,623,472,439 6,499,205 83,933 4,927 46,605 8,640,94 8,453, , ,985,042,859 9,496, ,67 399,67 9,895,969-2,448, ,923 0,3 48, ,428 68,94 308, estimate $7,792,00 66, ,300 8,252,900,522,570 6,868,290 35,30 62,550,050 96,200 36,000,200 8,936, ,000 5, ,000 9,488, ,300 35, ,600 9,99 -,74, 247,300 8, 39, ,800 77, ,40 2, estimate $7,822,600 64, ,000 8,237,00,69,570 7,426,200 8,050 66,650,050 96,200 36,000 9,577, , ,000 0,24, ,760 35,640 56,400 0,640,750-2,403, ,300 8, 38, ,800 87, ,550,750

8 THE BUDGET FOR FISCAL YEAR 950 SCHEDULE B-2 Continued COMPARATIVE STATEMENT OF INCOME AND EXPENSES BY DIVISIONS Continued 948 actual 949 estimate 950 estimate WARRIOR RIVER DIVISION Con. Expenses Continued Direct operating expenses Continued Traffic.. Insurance Operating rents Audit of accounts. $7,664-8,84 3, $7,800 5,900 2,800 $7,800 5,900 2,800 Total direct expenses before depreciation, losses and charge-ofls 369, , ,900 Depreciation and amortization Charge-ofls Property retired, in excess of related depreciation reserves 2, , 8, Total depreciation, losses and chargeofls 20,750 8, 8, Total direct operating expenses Administrative expenses 6,78 48,950 9, ,400 2, Total expenses ,37 438, ,900 Net income (or loss ( )) -86,889-43,750-90,00 WARRIOR TERMINAL DIVISION Income: Transportation revenue, switching Hent revenue Adjusting for year affecting prior periods 478,38 48,967, ,600 50,000 55,600 50,000 Total income 529, ,00 565,600 Expenses: Direct operating expenses: Maintenance Transportation Operating rents Taxes Traffic... Audit of accounts Insurance 97,49 2,583 3,458 2,37 4,77, ,000 2,50 3, 2, 3, ,000 2,50 3, 2, 4,000 Total direct expenses, before depreciation - Depreciation 259,898 24, ,650 24, ,650 24,600 Total direct operating expenses Administrative expenses 284,37 8, ,250 4,00 283,250 4,00 Total expenses 302,74 287, ,350 Net income (or loss ( )) 226, , ,250 Total net income (or loss (-)) -2,308,40 -,606, -2,35, i Included in administrative expenses.

9 950 BUSINESS-TYPE BUDGETS INLAND WATERWAYS CORPORATION 3 SCHEDULE C-l INVESTMENT IN LAND, STRUCTURES, AND EQUIPMENT [As of June 30, 948,949, and 950] Buildings and other structures Office and other terminal Line Improvements on leased Other transportation and Noncarrier Railroad right-ofway Railroad Railroad general Total balance June 30, 947 Additions through June 30, 948 Retirements and transfers through June 30,948. $6,760,423 2,52,56-557,344 $,669,603 46, ,85 $705,337 62,993-64, 588 $523,20 6,503-73,968 $384,783 3,53-3, $99,72 $,354,6-36 $495,725 6,257 $8,29 $2,00,074 2,378,67»-l,208,287 Balance June 30,948 Additions through June 30, 949 Retirements and transfers through June 30,949 8,355, ,000-0,000,207, , , ,84 99,72,354,575 50,982 8,29 3,70, ,000-0,000 Balance June 30, 949 Additions through June 30, Retirements and transfers through June 30,950 8,545,640,207, , , ,84 99,72,354,575 50,982 8,29 3,360,954 Balance June 30,950 8,545,640,207, , , ,84 99,72,354,575 50,982 8,29 3,360,954 i Property retired and transferred was charged as follows: To depreciation reserve (statement C-2) $680,50 $5,000 To adjustments in reserve (statement C-2) 3,6 To sales (statement A) 98,235 Toexpenses (statement B) 477,645 5,000 Net credit to surplus (statement B),469,9 0, ,904,208,287 0,000 SCHEDULE C-2 ANALYSIS OF DEPRECIATION RESERVE [As of June 30,948,949, and 950] Line Buildings and other structures Office and other terminal Improvements on leased Other transportation and Noncarrier Railroad right-ofway Railroad Total Balance June 30,947 Accruals through June 30,94*8 Retirements and transfers through June 30,948. Adjustments $2,574, , ,77-03,825 $580,526 4,397-32,924 $346,772 3,792-36,834 $2,549 7,33-8,873 $63,543 4,300-4,342-9,336 $9,508 5,93 $26,779 5,867 $22,63 8,605 $4,044,245 60, ,50-3,6 Balance June 30, 948 Accruals through June 30, 949 Retirements and transfers through June 30, 949 2,60, ,800-5, ,999 29,000 34,730 26,000 56,989 55,00 64,65 5,400 5,439 5,200 32,646 5, ,768 8,700 3,86,37 590,00 5,000 Balance June 30, 949 Accruals through June 30, , - Retirements and transfers through June 30,950 3,040, , , , , ,000 22,089 55,00 79,565 5,400 20,639 5,200 38,546 5, ,468 8,700 4,446,47 590,00 Balance June 30, 950 3,475, , , ,89 94,965 25,839 44, ,68 5,036,57

10 THE BUDGET FOR FISCAL YEAR 950 ESTIMATES OF APPROPRIATION Subscriptions to Capital Stock, Inland Waterways Corporation Inland Waterways Corporation: For the purchase of capital stock of the Inland Waterways Corporation authorized by section 2 of the Act of June 3, 924, as amended (49 U. S. C. 52), [$2,000,000] $,000,000, to remain available until expended. (The Government Corporations Appropriation Act, 949.) Appropriated 949, $2,000,000 Estimate 950, $,000,000 Obligations: 6 Investments, loans (purchase of capital stock of Inland Waterways Corporation) 949, $2,000,000; 950, $,000,000. ANALYSIS OF ADMINISTRATIVE EXPENSES BY OBJECTS Continued Personal services Reimbursable Expenses Supplies and expenses.. Total reimbursable expenses Total administrative expenses 948 actual $998 22, , estimate $ 950 estimate $542,000 ESTIMATES OF AUTHORIZATION RELATING TO CORPORATE FUNDS NOTE. The text of general authorizing language, as incorporated in The Government Corporations Appropriation Act, 949, and as proposed for 950, will be found immed iately following the summary statements at the beginning of part III of this Budget. Administrative Expenses, Inland Waterways Corporation Inland Waterways Corporation: Not to exceed [$498,800] $5^2,000 shall be available for administrative expenses, to be determined in the manner set forth under the title "General expenses" in the Uniform System of Accounts for Carriers by Water of the Interstate Commerce Commission (effective January, 947) [for water operations, and in the manner set forth under the title "Operating expense accounts general" in the Uniform System of Accounts for Steam Railroads of the Interstate Commerce Commission (issue of 943) for railroad operations]: Provided, That no funds shall be used to pay compensation of employees normally subject to the Classification Act of 923, as amended, at rates in excess of rates fixed for similar services under the provisions of the Classification Act, as amended, nor to pay the compensation of vessel employees and such terminal and other employees as are not covered by the Classification Act, at rates in excess of rates prevailing in the river transportation industry in the area (including prevailing leave allowances for vessel employees, but the granting of such allowances shall not be construed as establishing a different leave system within the meaning of that term as used in section 8 of the Act of December 2, 944 (fi U. S. C. 6d))l: Provided further, That the Corporation is authorized to pay not to exceed $, for services actually rendered by former employees during the fiscal year 947 and for which there is no present authority to pay, as follows: L. Brown, $20.06; W. Finch, $40.; J.'Johnson, $6.6; S. Jones, $86.3; R. Neely, $48.7; G. Sanders, $03.9; N. L. Sanders, $23.82; G. Walker, $30.78; W. Winfield, $83.37; W. Scruggs, $53.60; E. Donley, $02.68; H. Thomas, $74.]. FUNDS AVAILABLE FOR ADMINISTRATIVE EXPENSES For Direct Expenses Limitation or estimate Proposed supplemental limitation due to pay increase Total available for administrative expenses Unexpended balance, estimated savings. Expenses incurred Comparative transfer from "Administrative expenses, Warrior River Terminal Company" Total direct expenses For Reimbursable Expenses Reimbursements for services performed Total administrative expenses ANALYSIS OF ADMINISTRATIVE EXPENSES BY OBJECTS Direct Expenses Personal services: At rates prior to Public Law 900 Cost at Public Law 900 Travel. Telephone and telegraph Penalty and post-paid mail Office rent and utilities Auto expenses, other than depreciation.. Office supplies and expenses Stationery and printing Membership dues and subscriptions Legal expenses Fees and expenses, board of advisers Pensions and relief Operating official train. Audit of accounts.. Total direct expenses 948 actual $48,00 48,00-3,465 44,635 20,00 434, 735, , 75 $33, 773 2, 663 7,070,090 2, , 294 0, ,93,653, , , estimate $498,800 30, $358,285 35, 300 5,000 7,,400 22, ,000,000 25,000 2,600 20, , estimate $542, , , , ,000 $370,859 35,640 5,000 7,,400 22, ,000,000 25,000 2,400 20, , ,000 DETAIL OF PERSONAL SERVICES Departmental: Rate of $0,000 and over: Chairman of the board Rate of $4,000 to $5,000: Secretary to the chairman All personal services, departmental - Field: Rate of $0,000 and over: President Vice president Vice president-general manager Rate of $9,000 to $0,000: Vice president.. Trip pilot Rate of $8,000 to $9,000: Executive assistant Secretary-treasurer General traffic manager Rate of $7,000 to $8,000: General manager, terminals Personnel officer Safety engineer M arine superintendent Chief engineer Master pilot Rate of $6,000 to $7,000: C laims officer Assistant traffic manager General auditor Auditor of freight accounts Assistant chief engineer District manager District superintendent Division manager Pilot Assistant to secretary-treasurer Assistant marine superintendent Port captain Chief engineer, vessels Master pilot Supervisor Rate of $5,000 to $6,000: Naval architect Assistant to secretary-treasurer Cashier Assistant traffic manager Assistant marine superintendent Port captain Division manager Supervisor Chief engineer, vessels. Trainmaster Master pilot Purchasing officer Superintendent of maintenance Mechanical supervisor District manager Personnel assistant Pilot. Master.. Assistant engineer, vessels E astern traffic representative Secretary, general freight agent Rate of $4,000 to $5,000: Master Assistant engineer, vessels Attorney Assistant traffic manager Division manager Purchasing agent. Traffic solicitor Administrative assistant Mechanical engineer Assistant district manager Pilot Marine engineer Assistant general manager, terminals. Container dispatcher Transportation assistant Terminal dispatcher Commerce agent Accounting and auditing assistant General foreman Engineer, trains District manager Master pilot Conductor Traveling auditor Chief engineer, vessels Section chief Num- Total $0,000 4,50 2 4,50 0, 000 0,000 9,000 9,25 8,479 8,80 8,80 7,02 7,02 7, ,600 6,384 6,45 6,45 6,45 6,45 ~38"228,666 5,53, 058 5, 905 5,368 22, 976 5,067 22,560 5,53 0, 306 5,53 6, ,60 5,027 5, , ,272 4, 902 4,902 4,902 8,550 8,80 7, 520 2,700 4,50 4,50 8,425 4,65 4,65 2,75 8, ,732 Num- Total $0,000 4,50 2 4,50 0,000 0,000 8, ', ,02 7,02 7,02 252,44 6,384 6,45 6,45 6,45 6,45 6,45 6,45 6, ,20 6, ,040 5, ,306 5,53 5,97 8 0,088 5,66 3,68 5,53 2 0,306 5,53 2 0,306 5,53 2 0,382 5, ,760 9,38 8, 044 8,424 4,777 4,777 8,70 22, 583 8,506 4,024 8,884 2,448 Num- Tot&l $0,000 4,50 2 4,50 0,000 0,000 8,778 8,778 8,778 7, , ,623 6, ,384 6,384 6,384 6, , ,45 6,45 6,45 6 0, ,98 6,23 5, ,808 5, ,604 5,897 5, ,808 5, ,557 5,53 2 0, , ,92 7, 558 4,526 4,526 4,526 4, ,948 8,676 4,902 4,902 4,526 9,46 4,856 8,932 8,90 8,74 7, 56 6,850

11 950 BUSINESS-TYPE BUDGETS INLAND WATERWAYS CORPORATION actual 949 estimate 950 estimate 948 actual 949 estimate 950 estimate DETAIL OF PERSONAL SERVICES Con. Field Continued Kate of $4,000 to $5,000 Continued Traffic representative Methods analyst Warehouse specialist Assistant to division manager Chief radio operator Brakeman Marine inspector Bridge foreman Personnel assistant Rate of $3,600 to $4,000 Rate of $3,000 to $3,600 Rate of $2,000 to $3,000 Rate of under $2,000- Total permanent, field.. Deduct lapses Net permanent, field (average number, net salary) Overtime and holiday pay, field. All personal services, field. Personal services at rates prior to Public Law 900 Num- Total 2 $ , ,434,577 3, 555, ,945 2,24 5, 766, ,693,65, , 073, , 55 4,303, 928 4, 38, 078 Num- Total $4,354 4, , ,436,335 3, 087, ,559,850,28 5, 20,76 3, 956, , 322, , 99,337 3, 887,374 20, 000 4, 097, 374 4,, 524 Num- Total $4,024 4, ,668 4,024 4, , , ,02, , 224, , 000 3, 434, 830 DETAIL OF PERSONAL SERVICES Con. Personal services. Salaries and wages in the foregoing schedule are distributed as follows: Administrative expenses: Direct expenses Reimbursable expenses Total Maintenance expenses Transportation expenses Traffic expenses Total of foregoing schedule 4, 38, , , , 097 3, 660,86 4,024 4, 38, 078 4,99, , , , 869 3, 423, 27 27, 283 4,99, 954 Administrative Expenses, Warrior River Terminal Company FUNDS AVAILABLE FOR ADMINISTRATIVE EXPENSES Limitation or estimate Comparative transfer to "Administrative expenses, Inland Waterways Corporation" Total obligations 948 actual $20,00-20,00 $70,620 3, 59, , , , 52 2, 74, , 59, estimate 950 estimate