Re: (erielack) Taxes Revisited

["Todd Stearns" <toddsyr_@_twcny.rr.com>]

Good observations Paul. As they say around here, "welcome to NY". Definetly
enough to scare off merger prospects. Who wants to inherit huge ( and
increasing annualy ) tax costs? Todd


- ----- Original Message ----- 
From: "Paul Brezicki" <doctorpb_@_bellsouth.net>
To: "EL Mailing List" <erielack_@_lists.elhts.org>
Sent: Friday, October 27, 2006 6:17 AM
Subject: (erielack) Taxes Revisited


> I've been looking at EL financial statements for 1973 and '74 (definitely
not a "pick-me-up"), and in light of our recent discussion of high property
tax in eastern states, especially NJ, I noted the item "Taxes other than
taxes on income" (EL didn't have any of the latter, of course). This is from
the 1974 Annual Report and so is not further detailed, but I presume most of
it is property tax, from which apparently bankruptcy did not provide relief.
This item cost EL about $31.5m in 1974, 23% more than in 1973. EL's net loss
in '74 was $17.2m. The added $6m tax burden helped consume a good chunk of
the $25m increase in freight operating revenue, which was due to rate
increases. So it appears that EL may actually have been profitable if not
for excessive property tax. No wonder NKP and then N&W didn't want any part
of it. Comments, anyone?
>
> Paul B
>
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