Page 58: of Maritime Reporter Magazine (June 1985)

U.S. BARGE AND TOWING OPERATIONS (continued from page 54) the rails are concerned regarding the gobbling up of competing barge lines—in direct contravention of the law and polite custom—and have a

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.

Then there is the Santa Fe South- ern Pacific Corp., another railroad judged to be revenue inadequate by the government, despite profits in taxable years 1981-1983 of 1.5 bil- lion dollars, on which the company paid absolutely no federal income tax and was sent a very substantial rebate check by that same govern- ment.

Witness also Norfolk Southern

Corp. Needless to belabor the point—Norfolk Southern is, of course, revenue inadequate. This despite profits in taxable years 1981-1983 of a respectable 574 mil- lion dollars.

Where is the fairness in all this?

In a fair system, a company can't be revenue inadequate and flush with cash at the same time. In a fair sys- tem, a company should not be on the ropes financially and yet be asked to pay still higher user taxes at the same time. It's just not defen- sible.

Our national leadership must rec- ognize the severity of our waterway industry's plight, and consider the crucial role we play in the transpor- tation system and the overall econo- my. Laws and regulations must be directed at protecting the public and nurturing the industry, and not at inhibiting it any further. How can reasonable people possibly advocate still higher user fees in light of the disastrous data on the financial con- dition of the water carrier industry borne out in the Arthur Ander- son study and other independent surveys concerning the economic health of our industry?

If, as I contend, the proper role of government in our mixed economy is to promote a healthy, balanced system of transportation, and do so with only the minimum intrusion necessary, then something is rotten in Denmark regarding the relation- ship of the water carriers to the gov- ernment.

How we fell from dad's grace is anyone's guess, but if a reconcilia- tion is not forthcoming fast, one son of government, once a master of the water, is going to die of drowning.

And it will not be an accidental death. look at government tax policy as it relates to the rails. Bear in mind that the government proposes high- er taxes for the barge operators who are struggling to stay afloat and draw your own conclusions regard- ing the equity of the government's tax policy regarding the rail car- riers—most of the largest of which find themselves in the financial pink since the passage of the Stag- gers Rail Act of 1980, despite being found to be not "revenue adequate" by the government. Briefly, this de- termination means that the rail car- rier is, in the view of the govern- ment, unable to make basic costs and a reasonable profit on capital

HOISTING (NORMAL)

WORKBOATS THAT WORK!

Bender builds worklioats with a future.

Circle 218 on Reader Service Card

THE GREATEST ESCAPE

Now in the United States brought to you by

Viking Life-Saving Equipment (America), Inc.

When it comes to packages, we offer the latest in technology, space-saving and least expensive ideas for escape.

Viking Life-Saving Equipment (America), Inc. 3305 N.W. 37 Street, Miami, Fla. 33142

Phone: (305) 638-3300, Telex: 52 2899 (viking usa mia)

Cable: VIKINGUSA

Bender builds working boats that are known for their reliability and performance. Year delivers towboats, push boats, utility and special designs like a new generation of Hostile Class anchor handling supply vessels to customers around the world.

So, whether you work in the oil patch off the Gulf Coast or in an ice patch near > the Arctic Circle—

Bender has a workboat that works for you!

For more information call

JOHN R. LOGAN.

General Sales Manager, or

PETER MASCHKE in Mobile; and on the West Coast call

JOE HENDRIX at (206) 282-9631.

Circle 177 on Reader Service Card

Finally - a complete Davit Launching system with USCG approved inflatable liferafts for 12, 16, 20 and 25 person capacity, a new USCG approved stainless steel automatic release hook, and a choice of USCG approved Davits.

A system without the added expense of boarding and operating ramps. A system with a choice of fixed, slewing or luffing type Davits, a system with totally watertight liferaft containers for prolonged life, and a system that allows float free or throw-over capability. 56 Maritime Reporter/Engineering News