[Congressional Record Volume 140, Number 149 (Thursday, December 1, 1994)]
[Senate]
[Page S]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: December 1, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
                THE LITTLE RAILROAD THAT COULD--AND DOES

 Mr. SIMON. Mr. President, over the years I have been proud to 
know and work with Hugh Crane, an extraordinary entrepreneur in Marion, 
Illinois, who is the visionary founder, president and driving force at 
the throttle of the Crab Orchard and Egyptian Railroad.
  From coast-to-coast, there is no better example than the CO&E in 
illustrating the vital link that the nation's short line railroads 
provide as vital gateways connecting local businesses to the interstate 
railroad network.
  Hugh will leave no stone unturned when it comes to serving his 
customers, potential customers, and Southern Illinois' economy; I've 
seen--and experienced--his dedication and persistence time and time 
again. He has waged and won countless crusades ranging from saving 
abandoned rail segments to achieving fair treatment from the large 
railroads for his customers.
  Hugh Crane and his railroad have been honored by the Chamber of 
Commerce in Marion and have been spotlighted in national news programs. 
Hugh deserves a place in anyone's business hall of fame, and he would 
certainly get my vote.
  The story of the roles played by short-line railroads was told 
recently, using Crab Orchard & Egyptian Railroad as an example, in a 
nationally published news story by the Associated Press that ran in 
many newspapers on Oct. 9. I call the attention of my colleagues to the 
article and ask that it be printed in the Record.
  The article follows:

               Smaller Lines Perform Service Others Won't

       Marion, IL. (A)--Hugh Crane believes in the power of his 
     Crab Orchard and Egyptian Railroad, even though it only has 
     15 miles of track and four engines.
       Dozens of industries and hundreds of jobs depend on a 
     ``short line'' that runs between two Illinois cities.
       When Illinois Central announced in 1976 it wanted to 
     abandon the small length of track, Crane and some investors 
     got permission to run it.
       Today, the disel-electric locomotives sporting white 
     pyramid logos are a vital link for more than a dozen 
     industries--and hundreds of jobs.


                           What's behind this

       C.O. & E. was one of the pioneers in an explosion of small 
     railroads nationwide that was sparked by the relaxation of 
     federal regulations that made it easier for major carriers to 
     shed less-lucrative routes.
       The number of ``short line'' and regional railroads has 
     more than doubled to greater than 500 since 1980, the 
     American Short Line Railroad Association says.
       ``There are people *  *  * who have jobs only because 
     they're able to tie into the enormity of the North American 
     continent,'' Crane said.


                                Revenue

       Last year, short line and regional railroads accounted for 
     $2.8 billion in revenue, or 9 percent of the railroad 
     industry's total, the short line association says. They 
     operated 43,000 miles of track--25 percent of the total--and 
     accounted for 11 percent of railroad jobs.
       Short lines are defined as railroads having $20 million or 
     less in annual railroad operating revenue. Regionals fall 
     between $20 million and $250 million.


                               Viewpoint

       Major railroads don't see their smaller brethren as 
     competition. Rather, they realize short lines and regionals 
     keep track in use that otherwise might be abandoned: nearly 
     30,000 miles since 1980, by the short line association's 
     reckoning.
       The big freight carriers, however, are quite competitive 
     among themselves.
       Union Pacific Corp., the nation's biggest railroad company, 
     Wednesday offered $3.4 billion for Santa Fe Pacific Corp., 
     hoping to block a pending merger between Santa Fe and 
     Burlington Northern Inc. Santa Fe rejected Union Pacific's 
     offer a day later.
       Burlington Northern and Union Pacific, aside from their 
     designs on Santa Fe, have something else in common too: 
     little C.O. & E.


                             How this works

       With tracks in Marion and Herrin, two towns about 330 miles 
     south of Chicago, Crane's railroad hands off and receives 
     cars from the two big carriers. They pay by the car and C.O. 
     & E.'s fees average about $200 per car, Crane said.
       He won't release any financial figures for his six-employee 
     company but would say the railroad ran 166 loaded cars last 
     month.
       Crane who serves as president and chief engineer of C.O. & 
     E., deflects attempts to credit his railroad with boosting 
     the area's economy. But some clients disagree.
       ``If we have to choose between moving to a location that 
     has rail and a location that doesn't, we'll chose the one 
     that has it.'' said Rudy Bond, president of 21-worker Perma-
     Treat Lumber Co., which came to Marion in 1982.

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