Information of interest to operating railroad and transportation employees

For

STB to hear Conrail carve-up testimony beginning today

WASHINGTON – The Surface Transportation Board (STB) begins two days of hearings on CSX and Norfolk Southern’s acquisition of Conrail today.

The two carriers have one last chance over the next two days to convince the STB that their plan to divide Conrail should be approved. In five days, the STB’s voting conference will show if they are successful. The STB is expected to approve the plan, which would create two rail systems with nearly equal revenue, assets and market coverage.

CSX and NS would control virtually all freight service east of the Mississippi River. A written decision on July 23 will trigger a 30-day countdown toward a late August takeover, but there is some doubt about the precise date NS and CSX will split up Conrail.

Part of the concern is that the Conrail carve up not repeat the disaster created when the Union Pacific merged with the Southern Pacific creating the worst rail traffic jam in U.S. history.

More Conrail news and deals with NS, CSX

CLEVELAND – The Cleveland area will get $87 million from CSX, Norfolk Southern and the government and that’s why a group of suburban mayors will go to Washington today and drop their opposition to the Conrail carve-up.

Cleveland and its suburbs are key to the Conrail deal because this is where the two carriers meet and will be switching from CSX to NS. On Monday, the City of Cleveland reached a deal with NS, but has yet to reach a deal with CSX.

In the latest deal, the two carriers will toss in $44 million to rebuild track, overpasses and underpasses. The State of Ohio and the federal government will provide the other funds.

In related news, the City of Indianapolis has agreed to support the Conrail deal after agreeing on a deal with CSX that includes the carrier saying it will treat NS and shortline railroads fairly.

Source: CSX may delay until 1999 Conrail takeover

WASHINGTON – Dow Jones Newswires report that CSX Corp. is prepared to delay its planned takeover of Conrail until next year in order to avoid rail service problems that have plagued the Midwest and West, according to an unnamed senior CSX executive.

Norfolk Southern will get 58% of Conrail and CSX the rest. If the carve-up is delayed until next year, it will go well beyond the Sept. 1 internal target date set by the two carriers.

No negotiations in Philadelphia transit strike

PHILADELPHIA – As Philadelphia enters Day 3 of its transit strike, there are no negotiations scheduled and the city and union are squaring off across picket lines.

On Monday, the 5,300 SEPTA workers represented by the Transportation Workers Union Local 234 went on strike because they have failed to reach a new contract after their old pact expired on March 15.

More than 430,000 commuters continue to scramble to find ways around town. Regional rail service has been overwhelmed by crowds and has run late and downtown traffic ran slowly.

Service remained suspended on all City Division buses, trolleys and subway-surface and elevated trains as well as bus service in Montgomery and Bucks Counties.

Bus and trolley service on routes in Delaware County was disrupted yesterday for 5 1/2 hours before SEPTA won a court order lifting a blockade by TWU members at the 69^th Street Terminal in Upper Darby where those vehicles are maintained by TWU members and operated by UTU drivers.

About 280 SEPTA drivers and trolley operators represented by the United Transportation Union Local 1594 in Upper Darby, Pa., had approved a three-year contract with SEPTA in early April.

Railroad stocks drag down Dow Jones Transportation Average

NEW YORK – Railroad stocks yesterday depressed the Dow Jones Transportation Average after Merrill Lynch downgraded four big members of the group from long-term buy to long-term accumulate.

Railroads were the industry group with the steepest price percentage loss on the day.

Railroad stocks downgraded include Union Pacific, Norfolk Southern, CSX Corp., and Burlington Northern Santa Fe.

Cheerleader killed trying to beat train across tracks

PERRY, Ohio – A Perry High School cheerleader who was running late for school challenged a freight train and lost her life when it slammed into her car killing her.

Witnesses said that Jennifer Garry, 17, was trying to beat the freight train across the track when she was hit at 8:05 a.m. yesterday. She is the third student to die at this high school this year.

Jennifer’s former boyfriend committed suicide three months ago by shooting himself to death while clutching her picture. Another cheerleader was killed in a September car crash in this small Ohio town.