The saga of the near-bankruptcy and reorganization of Altoona, Pa.'s Railroaders Memorial Museum, recounted in the Altoona Mirror last week, made the Pittsburgh Post Gazette today (Monday); unlike the Mirror, THIS article is available online!

(Tip o' the hat to Chris Webster of the Observation Car Yahoo-Group for calling this to my attention, and thus yours......)

Pittsburgh Post-Gazette article on Altoona Museum
lner4472@bcpl.net

> The saga of the near-bankruptcy and
> reorganization of Altoona, Pa.'s Railroaders
> Memorial Museum, recounted in the Altoona
> Mirror last week, made the Pittsburgh Post
> Gazette today (Monday); unlike the Mirror,
> THIS article is available online!

> (Tip o' the hat to Chris Webster of the
> Observation Car Yahoo-Group for calling this
> to my attention, and thus yours......)

Yikes! I hope that the museum does survive intact as its a place I want to visit in the future, and apparently does a very good job of telling the human side of railroading (as a museum named the railroader's memorial museum should), plus has been now spending some time and effort on their rolling stock (building the quarter-roundhouse for secure storagem and repair work), pushing for completion of the 1361, Herman Haupt bridge, Loretto business car restorations).

JBeutel611@aol.com

Did I read and interpret that correctly?

It took $16 million to start-up, and they've spent $1.5 million a year for 4 years? does this include money spent on the K4?

They've burned through $22 million total, plus whatever they got from admissions and donations?????

That can't be right, can it?

May I also refer you to the June, 2002 issue of RAILPACE, page 8, under "Preservation Altoona Grants": Pennsylvania State Representative Rick Geist has announced that a major preservation project at the Altoona Railroaders Memorial Museum,
and Altoona's ongoing 12th Avenue streetscape project, will receive $1.6 million to construct a
Quarter Roundhouse. the streetscape project will receive $230,000 (CRTS)"
Wow! These people seem to know how to "bring home the bacon" Wouldn't the ingrates at St. Louis like some of that money? This makes the rest of us look bad! I guess they feel that the gov'ment
money train just keeps throwing more off!

> Did I read and interpret that correctly?

> It took $16 million to start-up, and they've
> spent $1.5 million a year for 4 years? does
> this include money spent on the K4?

> They've burned through $22 million total,
> plus whatever they got from admissions and
> donations?????

> That can't be right, can it?


schwartzsj@juno.com

> Wow! These people seem to know how to
> "bring home the bacon" Wouldn't
> the ingrates at St. Louis like some of that
> money? This makes the rest of us look bad! I
> guess they feel that the gov'ment
> money train just keeps throwing more off!

Man, that is an incredible total mount of money.

I don't understand the "ingrates" part, but St. Louis seems to be doing just fine without regular deliveries of carloads of Federal funding. I can think of other museums that seem to do very well without millions of Federal bucks, too. No doubt, they could do even better if they had access to some, but it's amazing how resourceful some musuems can be when they don't have open access to the Treasury Department.

And how little some others get accomplished per cubic dollar when they do have such access.

34 employees on the payroll?

> Did I read and interpret that correctly?

> It took $16 million to start-up, and they've
> spent $1.5 million a year for 4 years? does
> this include money spent on the K4?

> They've burned through $22 million total,
> plus whatever they got from admissions and
> donations?????

> That can't be right, can it?

Its hard to tell what happenned to the Altoona Railroaders Memorial Musuem in 2001 based upon a rather sloppy newspaper account and the prior year's statements on Guidestar.com. While RMM had operating losses in 1999 & 2000, unlike many of us, it has substantial assets ($14.4 million) that it depreciates. Thus, while it had a FY2000 operating loss of $100,000, operations provided a positive cash flow of $300,000 due to $400,000 in depreciation expense. Based upon the newspaper's account, it appears RMM had a FY2001 operating loss of $460,000 (increased A/P of $310,000 while drawing $150,000 on its line)

So what caused a $760,000 cash flow swing? In FY2000, RMM got a $853,000 governmental grant(it appears $424,000 was restricted, so perhaps they did have negative EBITDA). This probably wasn't matched the following year and worse, they were committed to spend the funds they had already received. Alternatively, 9/11 related problems probably could have reduced revenues for a seasonal operation or one dependent upon school groups.

An area were I usually look for problems is in admissions and cash handling proceedures. Most museums have shoddy controls over an area that has a high "temptation factor." An institution in my town increased admission revenues 20% after it prosecuted several employees for pocketing the change, several hundred thousand dollars worth. In FY2000, RMM averaged $6.45 per customer, so I'd compare that to FY2001 yields.

The newspaper report is inaccurate in several respects. The Museum is not "bankrupt," as that is a legal status confired by the courts. It may be insolvent, a financial condition. And no, they won't loose the K-4 unless they do something stupid, like sell it or voluntatily declare bankruptcy. With the summer season starting, lets hope there is some breathing room.



fred_ash@bankone.com

> I don't understand the "ingrates"
> part, but St. Louis seems to be doing just
> fine without regular deliveries of carloads
> of Federal funding.

I don't know what we've done in the last nearly 60 years to irritate the guy with the "ingrate" attitude but we would just love some of that money to help protect and preserve the collection that has been built in St. Louis. Perhaps its just our longevity. There is an object lesson here for all in the museum world, and we wish the folks in Harrisburg a speedy recovery

Museum of Transportation
rdgoldfede@aol.com

I don't understand it either. This could be a natural but painful evolution from the highly subsidized development phase of the museum into a more self supported maintenence and operating phase. In neither case does it seem to have any connection with MOT in St Louis.

At last years joint conference at Spencer Shops the delegation from Savannah was made painfully aware of the differences between a state supported institution with an active private foundation and a quasi-private non profit operating a city owned historic site. the amount of money that actually went into the work at Spencer seemed mind boggling from their POV. While the results are very impressive the general consensus was that "we could make it go a lot farther and get a lot more done with half the expense."

What wasn't taken into consideration was the additional expense load inherent in the expenditure of public finds on a public project. This was covered a couple weeks ago in another thread. The bureaucratic costs are as much as the cost of the work that gets done. 15 years ago Spencer was a sleepy well kept secret in the state system making its first forays into building itself from the inside out and looked with envy at SERM and B&O Museum.

This doesn't make any of the above ingrates or competetors for a diminishing pot of funds. Any institution will succed or fail depending on its ability to react to the changes in its marketplace and in the public sector support is usually allocated at least several months in advance so forecasting is easier than in the private sector.

There may have been a manager asleep at the switch in Altoona or not but it sounds like some legitimate businessmen are now taking the lead in restoring fiscal health and best of luck to them.

Dave

irondave@bellsouth.net

> And no,
> they won't loose the K-4 unless they do
> something stupid, like sell it or
> voluntatily declare bankruptcy. With the
> summer season starting, lets hope there is
> some breathing room.

There is a question about the K-4 that has troubled me for several years. I assume that it will break in on the DL&W main in the Poconos (not entirely inappropriate since they ran the Bel-Del trains into East Stroudsburg over DL&W trackage rights). Then it goes home to Altoona to run: where? Is NS going to make an exception to their steam policy so it can go around Horseshoe Curve? What is the operating plan?


Erie Lackawanna Dining Car Peservation Society
tstuy@eldcps.org

> I usually look for problems
> in admissions and cash handling proceedures.
> Most museums have shoddy controls over an
> area that has a high "temptation
> factor." An institution in my town
> increased admission revenues 20% after it
> prosecuted several employees for pocketing
> the change, several hundred thousand dollars
> worth. In FY2000, RMM averaged $6.45 per
> customer, so I'd compare that to FY2001
> yields.

Well, it wasn't (isn't?) unknown for conductors to pocket the occasional cash fare, or for agents to do the same, so maybe this is just another facet of preserving history! ;-)

Didn't the C&TS recently discover an embezzler in it's office/staff ranks?

> The newspaper report is inaccurate in
> several respects. The Museum is not
> "bankrupt," as that is a legal
> status confired by the courts. It may be
> insolvent, a financial condition. And no,
> they won't loose the K-4 unless they do
> something stupid, like sell it or
> voluntatily declare bankruptcy. With the
> summer season starting, lets hope there is
> some breathing room.

It also isn't the last K4, as the newspaper said; Unless that's a 4-6-2 mirage sitting at the museum in Strasburg.

I was merely stunned at the sheer amount of money. $80 million to start-up Steamtown; $16 million at this place, probably more at others. $100 million in federal money to a just a couple of rail museums. Puts a new light on the occasional complaint that rail preservation don't get any, or much, money support from government.

> There is a question about the K-4 that has
> troubled me for several years. I assume that
> it will break in on the DL&W main in the
> Poconos (not entirely inappropriate since
> they ran the Bel-Del trains into East
> Stroudsburg over DL&W trackage rights).
> Then it goes home to Altoona to run: where?
> Is NS going to make an exception to their
> steam policy so it can go around Horseshoe
> Curve? What is the operating plan?

As far as I can tell, there isn't one.

The one bright light in all of this might be the possible upcoming abandonment of the line from Altoona to Hollidaysburg, or its downgrading to short-line status, what with the pending closure of the line's major reason to exist, the Sam Rea Car Shops.

I know certain parties have suggested operations over the nearby (and "railfan-friendly") Everett Railroad, which now operates from Hollidaysburg to Roaring Spring and Sproul on two separate branches. These parties conveniently overlook the fact that as far back as 1942 employee timetables specifically forbade steamers with trailing trucks over this line. In addition, the further from Altoona one goes on these lines, the more "preposterous" the thought of operating any steamer other than a geared loco becomes. Portions of the line I have seen--possibly no longer in service--almost resemble the Toonerville Trolley of yore.

Sadly, for now the best place for 1361 to operate would be either Steamtown's run--or the ex-Pennsy Blue Mountain & Reading, if it were still operating as an excursion line.


lner4472@bcpl.net

you have hit the nail right on the head. I work for the Federal government and that is a government as it can get.

There are rules that we follow that are amazing. I am glad most of the preservation projects in this country are 501c3 projects.

The government does a lot for many people but historic preservation is not something that it is well suited to get into.

'nough said!

Ted


ted_miles@NPS.gov

> I was merely stunned at the sheer amount of
> money. $80 million to start-up Steamtown;
> $16 million at this place, probably more at
> others. $100 million in federal money to a
> just a couple of rail museums. Puts a new
> light on the occasional complaint that rail
> preservation don't get any, or much, money
> support from government.

Yeah, it is alot of money, especially from our standpoint. We spent a grand total of $12,000 to dismantle and move the Tod Engine, for which we had quotes of $60,000 to $115,000 from professional riggers to do the work. Our entire project of putting it on exhibit, including land acquisition will probably cost us about $120,000 over a several year timespan. Heck, we were just denied a loan to construct a building because the banks said that we were not asking for enough money! Go figure! It can be done cheaply, but you got to get rid of the unneccesary BS that drains your hard earned money. Just think, every time a law is passed the costs of doing things goes up. Remember that the next time you mutter "there ought to be a law..."


Tod Engine Foundation
todengine@woh.rr.com

This Altoona situation and the one recently cited on the West Coast should send up red flags. It is important for general members, board members, and the public to know the financial reportings of non-profit organizations such as RR museums. I cannot reiterate that enough. Most of their financial dealings are in the public limelight through publicly available tax filings. There is no reason for secrecy unless there is something to hide from public scrutiny and the IRS. The more open the books are, the less of these sad situations we should see.