A look back: Expressions and ‘executive viewpoints’ from December 1971
12/23/2021
By Pat Foran, Editor
Fifty years ago this week, “Brand New Key” by Melanie was #1 on the Billboard Hot 100. “All in the Family” was the most-watched TV program. The Clint Eastwood flick “Dirty Harry” was the top-grossing movie. In the longest game in NFL history (82 minutes and 40 seconds of game time), the Miami Dolphins on Dec. 25, 1971, beat the Kansas City Chiefs, 27-24, in double overtime.
It’s unclear where rail rated, ranked or registered on the minds of North Americans at that time, but if the December 1971 issue of Progressive Railroading — “The Executive Viewpoint,” as the magazine tagline read back then — is any indication, railroaders certainly had a lot on their minds as they prepared to turn the page on 1971.
In addition to featuring a lot of head shots of men wearing suits and stoic (and sometimes grim) expressions, the magazine includes news and observations (i.e., executive viewpoints) about the rail world, and the world, at large. Some of the commentary is contemplative, some of it urgent and all of it telling of a time when rail was slowly beginning to turn a corner — one of many corners that'd needed turning in the decade(s) ahead. Here’s a sampling from our December 1971 issue:
“The railroad industry’s rate of return remained perilously low through the first half of 1971, despite a new high in operating revenues, the Association of American Railroads reports. The 2.35 percent rate of return on net investment — compared with 1.87 percent for the comparable period of 1970 — is still far below the 6 percent the Interstate Commerce Commission said recently the railroads must attain if they are to provide needed service improvements.”
“Investment policies of most North American portfolio managers during the past twelve months have been predicated on the cynical but quite reasonable assumption that the dominant economic variable is the ambition of the Nixon Administration to be re-elected in November 1972.” — “The View From Wall Street” by Robert B. Deaton, who came from a railroad family (per his bio) and had been a security analyst specializing in the transportation industry.
“Will there be railroads [by 1985]? Will the railroads survive the financial crisis that seems to deepen every year? The real question before Congress and the American people is not the survival of the nation’s railroads but who is going to operate them, the government or railroad men. … Nationalization of railroads has been a financial disaster for the taxpayers in every foreign country that has tried it. If anyone mentions the possibility of nationalization to you, please tell him we taxpayers can’t afford it.” — Louis W. Menk, chairman, Burlington Northern Inc.
“John C. Kenefick, 49, chief executive officer, has been elected president of the Union Pacific Railroad company, succeeding Edd H. Bailey, retired.”
“Canadian National Railways has acted to strengthen its position in the field of solids pipelines with the creation of a permanent pipeline study group. The team’s primary concern will be slurry pipelines, which carry substances such as coal, mineral ores, potash, sulphur, reduced to granular form in a liquid solution.”
Bart Sherkow / Shutterstock.com “Canadian Pacific has added modishly dressed hostesses, trained by CP Air, to its Edmonton-Red Deer-Calgary passenger service. They will assist passengers en route and will serve snacks and beverages to passengers on request. Morning snacks will cost fifty cents and evening snacks seventy-five cents.”
“The Department of Transportation has asked Congress for $170 million for the National Railroad Passenger Corp. (Amtrak) over the next two years for operating expenses and to help finance new equipment. It is estimated that Amtrak expects a loss of $152 million in the fiscal year ending in July 1972, and a loss of $123 million in 1973. It’s initial financing consisted of a $40 million grant and $100 million in federal loan guarantees plus about $197 million, spread over three years, from the railroads as a fee for joining the corporation.” (Note: The Rail Passenger Service Act of 1970 created Amtrak to take over intercity passenger-rail service from the freights after years of declining ridership and deficits prompted them to ask for government help; by 1971, freight railroads had transferred most passenger service to Amtrak.)
“Purchasing executives are beginning to feel better about the future, according to a report by members to the National Association of Purchasing Management. In a special question asking how they feel regarding the next twelve months, 59 percent answered ‘optimistic’ or ‘satisfied’ and 41 percent said ‘concerned’ or ‘worried.’ It is the first time in 2-1/2 years that the optimists outnumbered the concerned.”
“Robert E. Sullivan has been appointed general manager of the Indiana Harbor Belt Railroad. He was formerly assistant general manager of Penn Central’s Western Region with headquarters in Chicago."
“The three great major railroads in Europe apart from the Soviet Union, for the carriage of freight and passengers, are those of Poland (PKP), German Federal Republic (DB) and France (SNCF). In 1970 the freight carried amounted to about one-tenth of USSR and a fifth of American traffic; for passengers, slightly under half of Soviet traffic and sixfold that in America.”
"American railroads installed 6,179 miles of welded rail in 1970 bringing the total in use up to 31,921 miles. This was 71 percent greater than the previous single record established in 1969, according to the Association of American Railroads, which said a further increase is anticipated this year. It is estimated that welded rail saves $1,200 per track mile per year compared with maintenance costs of bolted rail."
“Hitachi Ltd. has built a linear motor, automated system for braking purposes during freight car shunting operations. Developed and manufactured in cooperation with the Japan National Railways (JNR), the system will shortly undergo tests at one of JNR’s larger yards. Components of the system include a pusher car, control car and linear motor car.”
“A resilient Center Plate Extension pad system has been developed by Standard Car Truck Co., 332 S. Michigan Avenue, Chicago, Illinois 60604, to help the railroads solve their freight car ‘rough ride’ problem.”
