Maritime Reporter, February, 1985

<BODY> <div> AWO (continued from page 37) our industry? The answer is that the government dispenses its largesse selectively, and that is not always proper. While on the subject of govern- ment largesse, let us consider the case of the railroad industry. Con- sider specifically, Conrail. I am hap- py to report to you that things are going fine. Things are going so well, in fact, that Conrail has emerged from the protective warmth of mother government's apron and— with a little push from mom—has decided to go out into the world and seek his fortune on his own. The next time someone tells you how much it will cost to send your children to college, remember and be thankful that you were not called upon to raise baby Conrail to his majority. Or perhaps more accurate- ly, try to forget that you actually did help raise the little railroad to man- hood—despite the fact that mother government claims full credit for Conrail's performance. And make no mistake about it, his perform- ance has been remarkable. A straight "A" student, if you will. Certainly baby Conrail concen- trated in one of the more marketa- ble disciplines on his way to matura- tion. So marketable is baby Conrail that he is now up for sale—at the Need a Allied rnARiflE CRAflE Builds CRANES from 2 to 75 Tons! HMHB We build one of the original product lines of hy- draulically operated, pedestal mounted marine cranes. The line consists of 20 standard models with telescopic and double tapered box booms. Designed for use in a saltwater atmosphere, our cranes provide dependable performance on ships, barges, docks, offshore drilling/production plat- forms and work boats. Diesel or electric power packs available, and all cranes are equipped with automatic overload safety systems. Custom-made cranes and options are available. Allied Marine Cranes are distributed interna- tionally. One recently completed contract was with the U.S. Coast Guard for 89 cranes. Contact us for complete information. XHjjedlilARinE CRAT1E ^^nmmmmmmmaKKtm A Division of Allied Systems Company P.O. Box 23026, Portland, Oregon 97223 U.S.A. Telephone 503/625-2560 Telex 151731 ASC MARINE Beware! All underwater hull cleaning is not genuine SCAMP hull cleaning. When you're getting ready to have your hull cleaned, remem- ber: all underwater hull cleanings are not the same. You'll only get a genuine SCAMP hull cleaning from an autho- rized Butterworth SCAMP contractor. Butterworth has been the world leader in marine cleaning systems for over 50 years. We introduced SCAMP underwater hull cleaning to ship owners and operators to begin with. And Butterworth is still the name that's your assurance of quality and dependability. So, when it's time for a hull cleaning, make sure you call a genuine SCAMP contractor or your local sales representative and we'll be happy to make arrangements for you worldwide. BUTTERWORTH Butterworth, Inc., 3721 Lapas Drive, P.O. Box 18312. Houston. TX 77223 USA. Phone: 713-644-3636 or 1-800- 231-3628. Telex: 4620143 BTRWRTH. Circle 297 on Reader Service Card Peak Pressure indicator/Recorder for Precision-Monitoring Diesel Engine Power Cylinder Load Distribution Microprocessor-based, EN-SPEC 1000 takes the guesswork out of monitoring power cylinder firing pressures for high engine performance and maximum fuel efficiency. Detects harmful detonation and helps pinpoint misfiring cylinders and worn piston rings. Digital display shows running average of peak firing pressures. Built-in thermal printer supplies a paper tape record. Rugged (no moving parts), portable (weighs 12 pounds), battery-powered. One-step hookup to power cylinder indi- cator cock. Cooper Industries Energy Services Group EN-TRONIC® CONTROLS North Sandusky Street, Mount Vernon, Ohio 43050 Telephone: 614 393-8200. COOPER INDUSTRIES ENERGY SERVICES GROUP Circle 248 on Reader Service Card Circle 287 on Reader Sen/ice Card firesale price of about 1.2 billion dollars. Mother government is consider- ing only selected bids for baby. At present, there are only three re- maining bidders for Conrail: the Marriott Corporation, the Allegany Corp. and the Norfolk and Southern Railroad. This last bidder, the Nor- folk and Southern Railroad is con- sidered by the same mother govern- ment who is offering baby Conrail for sale—different branch—as a "revenue inadequate" railroad. Mother government is really pull- ing a fast one on the American pub- lic in the whole Conrail episode. The total federal bailout of the previous- ly strapped railroad cost 7.2 billion dollars—you paid. What's more, last year Conrail showed a profit of one half billion dollars. This money was not re- turned to you in consideration of the 7.2 billion dollars you earlier provided baby Conrail for his up- keep, maintenance and basic busi- ness education. Despite baby Conrail's profitabil- ity last year mother government gave our boy an allowance of 300 million dollars. And here is the real kicker: For whichever bidder ultimately is suc- cessful in obtaining baby Conrail, there is a bonus that in the world of business is really too good to be- lieve. Conrail comes without liabili- ty, without debt, without obliga- tions of any kind to the purchaser. Without any program for repay- ment of your 7.2 billion dollars. Mother government can really dole out the goodies when it comes to her favorite son. But enough of the saga of Conrail. Let's have a look at some other rail- roads which also receive a fair amount of consideration, not to say largesse, from the federal govern- ment. All four are deemed by the federal government as revenue inad- equate. Keep that in mind as we examine the real financial condition of these companies. Financial data on these companies is readily avail- able—they are publicly held. What that data reveals makes for a hard case for those who suggest that these railroads are not revenue ade- quate. The data reveal them to be highly profitable enterprises by any conventional business yardstick. Witness the financial condition of CSX Corp. in taxable years 1981- 1983, CSX Corp not only paid no federal tax whatsoever, on profits of 1.75 billion dollars, but received re- bates of taxes paid in earlier years or sold "excess" tax benefits to the extent that the corporation actually got money back from the federal government. Even more difficult to substantiate in light of the govern- ment's position on the revenue in- adequacy of CSX Corp., is that sup- posedly strapped corporation's near magical ability to come up with 1.06 billion dollars to purchase Texas Gas Resources, parent company of one of the nation's largest indepen- dent barge companies with which CSX Corp. directly competes—an acquisition which I believe is in direct contravention of the Panama Canal Act which expressly forbids such monopolistic mergers. (continued on page 40) 38 Maritime Reporter/Engineering News </div> <span id="lblContents"></span> <br /> <br /> <a href="http://www.digitalwavepublishing.com/" title="Digital Magazine">Digital Wave Publishing</a> </BODY>