As the fiscal year started, both Canada and the United States were in the midst of negotiations, legal fees were higher than normal and Railroad Retirement issues were unsettled.

The election of a United States President was developing into a real free-for-all with the economic outlook to be determined by the election.

During the year, we saw the Canadian Auto Workers initiate a raid on our membership in Canada and we saw various strikes, including a protracted strike at Hallmark Hotels in British Columbia, where strike benefits were paid from the Emergency Fund in accordance with the Resolution adopted at the International Association meeting in May 2000. Faced with these obstacles, our membership declined far worse than any decline we have seen in the past ten years.

Through the assistance of the Grand Lodge Officers, we have continued to remain financially sound.

This report reflects the changes in the financial position of the BMWE, the BMWE’s assets and any revisions in the BMWE’s assets and expenditure patterns.

In this Annual Report, all of the monies are stated in U.S. dollars. On March 31, 2001, at the time of this report, the conversion rate of a U.S. Dollar was One U.S. Dollar equals $1.58 Canadian.

In accordance with Article V, Section 4, of the Grand Lodge Constitution and Bylaws, I submit the following report reflecting the financial condition and activities of the Brotherhood of Maintenance of Way Employes, covering the period April 1, 2000 through March 31, 2001.

The total income for the fiscal year under review, April 1, 2000 through March 31, 2001, was $11,372,851.99, a decrease of $43,487.43, or .38%, from the previous fiscal year, April 1, 1999 to March 31, 2000. The combined income from dues and initiation fees decreased $484,708.46, or 5.05% from the preceding fiscal year. Income investments decreased $69,295.47, or 5.42%.

The net expenses for the fiscal year under review, April 1, 2000 through March 31, 2001, were $11,313,274.59, for an operating excess of $59,577.40. The net expenses for the previous fiscal year from April 1, 1999 through March 31, 2000, were $11,103,807.42, resulting in an operating excess of $312,532.00 for the period covered by the report compared to the previous fiscal year. Included in the operating excess of $59,577.40 for March 31, 2001 is an accrual of $100,000.00 to be used for the 2002 Grand Lodge Convention. In other words, our operating excess would have been $159,577.40.

In closing, it has been the practice since 1990 to have an annual budget prepared by each Grand Lodge department and branch office and subsequently reviewed by the Grand Lodge Executive Board. Many keynote issues such as the increased cost of health insurance, negotiations and legal expenses were given very close attention and every effort will continue to be made to ensure that a positive financial position will prevail.

I wish to thank the President, the Grand Lodge Officers, staff and employes. I would particularly like to thank Mr. John Pesta, Administrative Assistant to Secretary Treasurer, and Ms. Dixie Hunrath, the Secretary to the Secretary-Treasurer.

Equally, as well, I wish to thank all of the dedicated System Officers and Local Lodge Officers, who have maintained a devoted commitment to serving our members in times when budget cuts have reduced Grand Lodge employes, thus increasing everyone’s workload.

The following is a report of payments made from the Strike Fund Trust for the period April 1, 2000 through March 31, 2001. A total of $147,915.97 was paid from the Trust.

Strike Benefit payments, investment management fees, accounting fees and bank service charges were the only payments made from the Strike Fund Trust. At the close of the fiscal year March 31, 2001, there was a balance of $19,405,557.92 in the Strike Fund.

Payments to members, due to the BMWE’s strikes against the Union Pacific Railroad, totaled $50,118.00, and Norfolk Southern Railroad totaled $31,190.00.

Investment management fees, accounting fees and bank service charges totaled $66,607.97.

Canadian strike benefit payments from the Emergency Fund totaled $68,203.29, payments to members due to the BMWE’s strikes against CLN Industries totaled $12,892.47 and Hallmark Hotels totaled $55,310.82.

In our opinion, the financial statements referred to herein present fairly, in all material respects, the financial position of the Brotherhood of Maintenance of Way Employes as of March 31, 2001 and 2000 and the results of its operations for the years then ended in conformity with generally accepted accounting principles.