[Congressional Record Volume 145, Number 158 (Wednesday, November 10, 1999)]
[Senate]
[Pages S14475-S14477]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




  NOMINATION OF LINDA JOAN MORGAN, OF MARYLAND, TO BE A MEMBER OF THE 
                      SURFACE TRANSPORTATION BOARD

  The PRESIDING OFFICER. The clerk will report the next nomination.
  The legislative clerk read the nomination of Linda Joan Morgan, of 
Maryland, to be a Member of the Surface Transportation Board for a term 
expiring December 31, 2003.
  Mr. HOLLINGS. Mr. President, I rise in support of the nomination of 
Linda J. Morgan. Today we are considering the nomination of Linda 
Morgan to be reappointed as the chairman of the Surface Transportation 
Board. I am proud to say that I have known Chairman Morgan for many 
years. Although we may not always agree, I have a great deal of respect 
for her and know that two qualities she possesses in abundance are 
fairness and integrity. Those qualities, coupled with her commitment to 
public service, make her an outstanding chairman.
  Before I discuss Chairman Morgan's abilities and accomplishments, I 
would like to comment briefly on the agreement reached between railroad 
management and labor this week on the cram down issue. As many of you 
know, the carriers and their employees have been working on the terms 
of an agreement which would create new rules pertaining to the 
abrogation of

[[Page S14476]]

collective bargaining agreements. Yesterday, the parties agreed to a 
moratorium on the filing of section 4 notices while the negotiations 
take place to establish new rules. I am pleased that the parties were 
able to reach a compromise on this important issue and urge the STB to 
look favorably on this agreement. In addition, I expect to address this 
issue legislatively next year when we take up the STB reauthorization 
bill.
  As many of you know, Linda Morgan served as counsel for the Surface 
Transportation Subcommittee for 8 years and then as general counsel for 
the full Committee on Commerce, Science, and Transportation for seven 
years. During that time I found Linda Morgan to be one of the most 
intelligent and thorough professionals that I have worked with. She is 
smart and she cares about the issues--I know that she is committed to 
serving the public in her capacity as the chairman of the Surface 
Transportation Board.
  Linda Morgan has served as chairman of the Surface Transportation 
Board (STB) since it was created in 1996. Prior to that, she served as 
chairman of the ICC. In 1996 she was responsible for implementing the 
changes that Congress envisioned in the Interstate Commerce Commission 
Termination Act. She pared down the ICC and established a new, more 
streamlined agency in its place, the STB.
  Chairman Morgan is to be commended for her achievements and 
commitment to the mission of the STB during her first term. The STB 
operates with only 135 people, less than half the staff of it 
predecessor, but it is charged with regulating the entire railroad 
industry. Among her accomplishments, Chairman Morgan has facilitated 
creating a more efficient process for resolving rate disputes between 
shippers and carriers. Additionally, under her leadership, she has 
helped the private sector come to agreements on short line access and 
agricultural services arbitration which have benefited the entire 
transportation industry.
  Chairman Morgan has done an outstanding job moving the agency through 
several different places. She successfully transitioned the agency from 
the ICC to the STB. She has seen the railroad industry through three 
very large merger transactions. She helped resolve the service issues 
in the west. And last year she ended the practice of using product and 
geographic competition in determining appropriate rates for shippers.
  Linda Morgan has done a lot of heavy lifting during her tenure as 
chairman of the STB. She has my full confidence and I support her 
nomination.
  Mr. BURNS. Mr. President, I rise today to oppose the nomination of 
Linda Morgan. During her tenure as the chairwoman of the Surface 
Transportation Board, Ms. Morgan has failed to achieve a primary goal 
of this independent agency--protecting the rights of shippers using 
rail transportation. Earlier this year, I along with a number of other 
colleagues, introduced a bill, S. 621, that would help to create 
competition among rail carriers where that competition does not 
currently exist due to regional monopolization.
  This bill would resolve the economic inequities found around our 
nation. In my State of Montana, our farmers pay dramatically more for 
transportation costs than farmers anyplace else in the State. In fact, 
on a proportionate comparison, Montana's farmers pay more than most 
other shippers in the world. Why? I'll tell you why--because nearly the 
entire State of Montana is captive to the Burlington Northern Santa Fe 
railroad. In the case of Montana farmers, Montana is captive to BNSF.
  I cannot blame Ms. Morgan for this. The board's decision are based on 
misinterpreted statute that was legislated in the early 80's.
  However, I cam blame Ms. Morgan for not recognizing this as the case 
before the shippers asked me and several of my colleagues for 
assistance. It is inexcusable to treat the Nation's shippers so 
pitifully. It is arrogant on behalf of the railroads to think that they 
can take advantage of small shippers using strongarm tactics to 
determine shipping costs. It should not cost more to ship from Montana 
to the Pacific Northwest than it costs to ship from the Midwest to the 
Pacific Northwest--over the same tracks. This is an absurd manner in 
which to allow a railroad to operate.
  Back to Ms. Morgan. It is about time for Congress to recognize the 
inequities in the rail industry. Competition is based on choice. 
Without multiple competitors to choose from, we are left with a 
monopoly. BNSF has a monopoly in Montana and the four behemoths that 
have evolved since the early 80s when we had over 40 large railroads 
have monopolies all across this Nation.
  Let me quote Ms. Morgan from hearings held earlier this year:
  Ms. Morgan has stated, ``If Congress feels the statute doesn't work, 
it's up to Congress to provide a revision to the statute.'' Mr. 
President, Ms. Morgan is the chairwoman of the STB and a very 
intelligent woman. Ms. Morgan has recommended to this body that 
Congress would need to change the law in order to create an equitable 
environment. If the STB is saying this, if hundreds of shippers are 
saying this, if economists are saying this, why won't Congress react? 
I'll tell you why. Railroad interests in this city have a stronghold on 
legislation that would take away their ability to charge unchallenged 
rates.
  Ms. Morgan has also stated the following:
  ``The role of the STB is to allow competition where it exists and 
protect those where it does not exist.'' Let me give you an example of 
where competition does not exist. Competition does not exist in the 
entire state of Montana. Competition does not exist in the entire state 
of North Dakota. With four major railroads in the country, regional 
rail monopolies are very common. Montana was one of the first--we've 
been captive since 1980.
  Another statement from Ms. Morgan.
  ``The board is there to make sure that no rate is unreasonable. The 
equalization of rates is not inherent in the statute.'' A goal of the 
STB is to make sure that no rate is ``unreasonable''. The STB could 
define as unreasonable the rate paid by Montana's farmers. These rates 
are unreasonable! Lastly, Ms. Morgan has indicated that, ``The statute 
does not make competition a priority.'' I agree with her and that is 
why I am sympathetic, Her's is a thankless job and until Congress gives 
the STB the proper tools to decide cases in an equitable manner, it 
will continue to be a thankless job.
  Mr. President, we have an opportunity to do what is right for 
America. I will not support Ms. Morgan but I will support reform of the 
STB.
  I yield the floor.
  Mr. MOYNIHAN. Mr. President, I am pleased to vote to reappoint 
Surface Transportation Board, STB, Chairman Linda J. Morgan to serve 
another term on that panel even though I am troubled by some STB 
decisions concerning the CSX and Norfolk Southern acquisition of 
Conrail properties in New York State. I am encouraged, however, by 
Chairman Morgan's responsiveness to my requests, and those of my 
colleagues, to monitor the freight rail problems that have plagued New 
Yorkers since the June 1, 1999 implementation of the CSX/Norfolk 
Southern acquisition. Just last month, Chairman Morgan came to Buffalo 
to hear the concerns of local shippers.
  As she begins her second term as Chairman of the STB, Linda Morgan 
has presided over the largest rail mergers in this Nation's history. 
Now the hard part begins. If service failures persist, Chairman Morgan 
must exercise her statutory authority to impose conditions upon the 
railroads. This will be no easy task. Revising one's work in the face 
of significant opposition requires courage. But I am confident that 
should the public interest so require, Chairman Morgan will respond 
boldly. Nothing short of the future of freight rail in the United 
States is at stake.
  One additional thought is the role of organized labor in the freight 
rail industry. I would note that I do not find it fair that an 
interpretation of current Federal law permits the STB to revisit 
collective bargaining agreements dozens of years after a merger has 
been completed. There is a certain logic to providing the STB with the 
authority to abrogate local, State, and Federal laws to ensure the 
success of a merger. But the prospect that collective bargaining 
agreements--private contracts--can be the subject of renegotiation and 
mediation years after a merger has been consummated is troubling. In 
the 2nd session of the 106th Congress I will seek legislation to 
constrict the window of time following the

[[Page S14477]]

approval of a merger in which unions can be compelled to renegotiate 
collective bargaining agreements.
  In closing, Mr. President, the Surface Transportation Board faces 
extraordinarily difficult decisions in the next few years. I believe 
that Linda Morgan's experience as a trusted advisor and counsel to the 
Senate Commerce Committee and her chairmanship of the STB have prepared 
her well for the challenges that lie ahead. I yield the floor.
  Mr. LOTT. Mr. President, I ask for the yeas and nays on the 
nomination.
  The PRESIDING OFFICER. Is there a sufficient second?
  There is a sufficient second.
  The yeas and nays were ordered.
  The PRESIDING OFFICER. The question is, Will the Senate advise and 
consent to the nomination of Linda Joan Morgan, of Maryland, to be a 
Member of the Surface Transportation Board? On this question, the yeas 
and nays have been ordered, and the clerk will call the roll.
  The legislative clerk called the roll.
  Mr. NICKLES. I announce that the Senator from Arizona (Mr. McCain) is 
necessarily absent.
  The result was announced--yeas 96, nays 3, as follows:

                      [Rollcall Vote No. 362 Ex.]

                                YEAS--96

     Abraham
     Akaka
     Allard
     Ashcroft
     Baucus
     Bayh
     Bennett
     Biden
     Bingaman
     Bond
     Boxer
     Breaux
     Brownback
     Bryan
     Bunning
     Byrd
     Campbell
     Chafee, L.
     Cleland
     Cochran
     Collins
     Conrad
     Coverdell
     Craig
     Crapo
     Daschle
     DeWine
     Dodd
     Domenici
     Dorgan
     Durbin
     Edwards
     Enzi
     Feingold
     Feinstein
     Fitzgerald
     Frist
     Gorton
     Graham
     Gramm
     Grams
     Grassley
     Gregg
     Hagel
     Harkin
     Hatch
     Helms
     Hollings
     Hutchinson
     Hutchison
     Inhofe
     Inouye
     Jeffords
     Johnson
     Kennedy
     Kerrey
     Kerry
     Kohl
     Kyl
     Landrieu
     Lautenberg
     Leahy
     Levin
     Lieberman
     Lincoln
     Lott
     Lugar
     Mack
     McConnell
     Mikulski
     Moynihan
     Murkowski
     Murray
     Nickles
     Reed
     Reid
     Robb
     Roberts
     Roth
     Santorum
     Sarbanes
     Schumer
     Sessions
     Shelby
     Smith (NH)
     Smith (OR)
     Snowe
     Stevens
     Thomas
     Thompson
     Thurmond
     Torricelli
     Voinovich
     Warner
     Wellstone
     Wyden

                                NAYS--3

     Burns
     Rockefeller
     Specter

                             NOT VOTING--1

       
     McCain
       
  The nomination was confirmed.

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