Operating expenses of the rail line amounted to $2,620,494.56 in 1940; it is estimated that the operating expenses will be $3,698,750 in 1941 and $3,448,000 in 1942. Increased business is anticipated for 1941 and 1942 which will necessitate increased operations and costs to handle the traffic and greatly increased roadway and equipment maintenance. River boat expenses for 1940 amounted to $108,623.90. Approximately the same river boat freight and passenger business is anticipated for 1941 and 1942 but there will be a small increase in operating costs and repairs to floating equipment and the expenses for 1941 and 1942 are estimated at $110,000. REVENUES OF OPERATION As the revenues of the railroad from freight and passenger traffic and other sources are made available to pay operating expenses, the prospect for an increase or decrease in such revenues has a direct bearing on the amount to be estimated for appropriation. FREIGHT REVENUES, RAIL LINE Rail line freight revenue amounted to $1,568,946.08 in 1938, $1,634,393.38 in 1939, and $2,311,151.63 in 1940. The figure estimated for 1941 is $3,875,000, and for 1942 is $3,446,000. The number of tons of revenue freight carried increased from 157,904 tons in 1939 to 194,467 in 1940, and the ton miles increased from 27,826.082 to 39,907,588. Shipment of a large gold dredge to the Fairbanks district and construction material for the Federal Building, Anchorage, contributed to the 1940 increase in freight that will not be repeated in subsequent years. During the last 3 months of the year construction material was transported for the Army air bases at Anchorage and Fairbanks and a heavy movement of freight for these activities is anticipated for 1941 although it has not been possible to ascertain anything definite as to what can be expected. Available information indicates that construction of the Fairbanks air base will be completed in 1941 and with the loss of this revenue, although increased tonnage may move to Anchorage on account of the shorter haul and lower freight rate, a decrease in freight revenue under 1941 is estimated for 1942. Transportation of subsistence supplies and quarters for the workmen engaged in the air base projects will also contribute to increased freight revenues for 1941 and 1942. PASSENGER REVENUES, RAIL LINE The passenger revenues of the rail line amounted to $232,342.32 in 1938, $259,452.20 in 1939, and $264,715.30 in 1940. An increase in passenger traffic on account of workmen proceeding to place of employment at the air bases and the movement of troops is expected to contribute materially to increased passenger travel in 1941 with a reduction in revenue from these sources in 1942 and although the extent of this business is very indefinite the passenger revenue for 1941 is estimated at $314,000 and for 1942 at $305,000. The number of revenue passengers carried increased from 27,436 in 1939 to 29,510 in 1940. Revenue passengermiles decreased from 5,067,112 in 1939 to 4,939,980 in 1940, but owing to a reduction in the proportion of week end excursion tickets there was a slight increase in the revenue per passenger-mile. HOTELS AND RESTAURANTS The revenues from hotels and restaurants amounted to $36,873.42 in 1938, $56,781 in 1939, and $70,001.35 in 1940. The McKinley Park Hotel was in operation for a full season during 1940 compared with only 1 month during 1939. With increased travel of men proceeding to or from place of employment it is estimated that the revenue from hotels and restaurants will amount to $75,000 in 1941 and 1942. TELEGRAPH AND TELEPHONE The telegraph and telephone revenues for 1940 amounted to $13,667.47, a decrease of $74.28 under the previous year. This decrease is due primarily to increase in radio facilities. Increased telephone service is anticipated during the next few years on account of increased business activities and the revenues are estimated at $15,000 for 1941 and 1942. OTHER REVENUES The miscellaneous revenue included in other revenues decreased from $223,359.98 in 1939 to $219,766.80 in 1940. With increased passenger and freight traffic and other miscellaneous operations it is anticipated that the revenues from miscellaneous operations will increase to $227,000 in 1941 and $225,000 in 1942. RIVER BOAT REVENUE Freight revenue of the river boats increased from $82,548.30 in 1939 to $89,638.61 in 1940. Gold mining on both the lower Yukon River and the Koyukuk River continued active and shipments of supplies and fuel oil for this industry accounted for the increase of freight revenue. No further increase is anticipated at this time and the freight revenue for 1941 and 1942 are estimated at $90,000. Passenger revenue on the river boats increased from $8,748.60 in 1939 to $8,890.20 in 1940. Airplane travel is the big competitor with river boat passenger travel and but a slight increase is expected in the local passenger travel during 1941 and 1942 and the passenger revenue is estimated at $9,000 for both of these years. Statement of receipts and expenditures, fiscal years 1941-42 and estimate for appropriation, 1942 Estimate of funds to be available during 1941: Appropriated for 1941 as "Alaska Railroad appropriated fund”. Estimated revenues of operation, 1941 (appropriated as "Alaska Estimated total to be available during 1941... Estimate of funds to be required during 1941: For expenditures as shown in accompanying statement... For expenses of maintenance and operation of the railroad and river boat line, estimate herewith__ Total estimated expenditures, fiscal year 1941. "Alaska Railroad appro Estimate of funds to be available during fiscal year 1942: Total amount estimated to be available during 1942. Estimate of funds to be required during fiscal year, 1942: For expenditure as shown in accompanying statement... For expenses of maintenance and operation of the railroad and river boat line, estimate herewith.. Total estimated expenditures, fiscal year 1942_. $129, 039 4, 690, 000 4,819, 039 1, 010, 289 3,808, 750 4,819, 039 4, 250, 000 4, 250,000 692, 000 3, 558, 000 4, 250,000 Estimated expenditures, 1941-Roadway and structures and equipment Estimated expenditures, 1941-Roadway and structures and equipment-Continued Replace wooden bridge, mile 269.2, with steel bridge (balance) Replace wooden bridge, mile 269.9, with steel bridge.. Paint steel bridge, mile 148.3. Erect 4 semaphore signals. 3 water tanks for work trains. Purchase 1 passenger and freight locomotive_. 40 new boxcars__ 20 S. H. hopper cars. 2 S. H. baggage cars. 4 S. H. refrigeration cars_ 1 S. H. heater car. 3 S. H. coaches.. 10 S. H. boxcars. Overhaul 20 S. H. boxcars_ 1 S. H. crane_ Overhaul S. H. track pile driver.. Convert 9 CRNWRR flatcars to hot cars (balance). i 8, 500 45, 708 55, 000 2, 200 1, 150 600 98, 775 191, 600 37, 245 10, 000 6, 730 750 17, 680 7, 500 4,000 2, 500 10, 000 Convert 1 CRNWRR caboose to coach for mixed train service. 14, 995 2, 500 2,000 5,000 Convert 2 CRNWRR cabooses to baggage cars_ Convert coach 15 to smoker for winter use. Estimated expenditures, 1942-roadway and structures and equipment Comparative statement of operating revenues of the Alaska Railroad-Continued Colonel OHLSON. Mr. Chairman and gentlemen of the committee, I am pleased to report that the Alaska Railroad enjoyed a very good business during the fiscal year 1940, and indications are at the present time that the fiscal years 1941 and 1942 will be even greater, and the greatest in the history of the Alaska Railroad in point of revenue and tonnage handled. The increase in revenue will make it possible to continue to improve the general conditions of the railroad and thereby further reduce operating and maintenance costs. In order to handle this increased business it was necessary to purchase additional rolling stock and approximately 100 new and used freight cars have been received; also a new Pacific type of locomotive, manufactured by the Baldwin Locomotive Works. Orders have also been placed for additional used freight cars and an order will also be placed for another new locomotive. Mr. SCRUGHAM. Colonel Ohlson, what weight on the drivers will be used on the locomotive? Colonel OHLSON. This particular locomotive, I think, will be 155,000 pounds. Mr. SCRUGHAM. What is the diameter of the driver; 63? Colonel OHLSON. Sixty-three inches. |