In addition to new manufacturing at Juniata on Conrail SD70MAC's 4142-4144 and SD70's 2557-2558, Juniata has several insource projects.  Two more Columbian B36-7's are being remanufactured from Norfolk Southern B36-7 3815 and 3816.  Several more GECX C30-7's are being cycled through for three-year air modifications and preventive maintenance.  The C30-7's currently on the floor include 502, 516, 517, 540, 555, and 591.  LMS 730 is in the shop for repairs after becoming disabled on the Canadian National.  The other on-going project is the HEP modifications to New Jersey Transit units.  NJT 4114, 4115, 4123, 4126, and 4129. -Kevin Burkholder

SD70MAC UPDATE

STB SETS HEARING SCHEDULE

Surface Transportation Board (Board) Chairman Linda J. Morgan announced on Wednesday that, in the CSX-NS-Conrail merger proceeding, the Board has issued a decision establishing a 2-day oral argument schedule (see Schedule below) specifying the order of appearance and time allotted to each participant.  The schedule provides for a total of 9 hours of oral argument to be divided among approximately 70 parties, of which 2 hours
and 30 minutes are being allocated to primary applicants, and 6 hours and 30 minutes are being allocated to other parties under the following categories:  Federal Government Parties, Broad Shipper Interests, Specific
Shipper Interests, Coal, Passenger and Commuter Interests, Other Railroads, New York/New Jersey, Chicago, Indianapolis, Ohio, Other State Governments, Environmental and Safety Issues, and Labor.  Chairman Morgan noted that a number of United States Senators and Congressmen have requested to be included in the schedule to speak at the oral argument, and that time will be allocated at the beginning of each day or otherwise as needed to accommodate Members of Congress.

The oral argument will be held on June 3 and 4, 1998, beginning at 10:00 a.m. Eastern Time on each day in the Board's Hearing Room at its offices in the Mercury Building, 1925 K Street, N.W., in Washington.  As seating in the Board's 7th Floor Hearing Room is limited, a second room, the Brick Room on the 1st Floor of the Mercury Building, will be open and linked to the Hearing Room by television monitor.  Seating for members of the public in the Hearing Room and the Brick Room will be provided on a "first-come, first-admitted" basis.

SCHEDULE

Time will be allocated to Members of Congress at the beginning of each day or otherwise as needed.  Members of Congress will have the option of appearing on either Wednesday, June 3, 1998, or Thursday, June 4, 1998.

MEMBERS OF CONGRESS

Wednesday, June 3, 1998:
MEMBERS OF CONGRESS
TIME ALLOTTED
PRIMARY APPLICANTS

INDIANAPOLIS

Amtrak, CSX and Norfolk Southern Reach Accord on Conrail Proposal, Passenger Train Improvements: Amtrak announced May 13 that it has reached agreements with CSX and NS on the way the national passenger railroad and the two freight railroads will use one another's tracks and facilities after the proposed acquisition of Conrail's operations by CSX and NS.

Amtrak agreed to support the proposed CSX/NS transaction to operate the routes and assets of Conrail while the two freight railroads agreed to ensure that intercity passenger and commuter rail interests are protected and indicated their willingness to help Amtrak improve its passenger rail service at certain points outside the Northeast Corridor (NEC).

Amtrak's acting president and CEO George D. Warrington said, "These agreements permit significant economic development in the Northeast while still preserving the highest level of safety and on-time performance for commuter and Amtrak trains. They represent a committed partnership between America's intercity passenger rail service and two of the nation's major rail freight carriers. Our separate agreement with NS for carrying express on its lines signals the beginning of what I expect will be a strong partnership in a joint venture in the express market."

A major provision of the accords is Amtrak's agreement regarding access by both freight carriers to the Washington-New York segment of Amtrak's high-speed Washington-Boston route. This access is contemplated as part of the proposed Conrail transaction. Conrail currently has freight rail service rights to that segment of the NEC.

The agreements also contain provisions to improve Amtrak services on CSX and NS rail lines outside the NEC, including current Conrail lines. CSX and NS have agreed to STB oversight of the on-time performance of Amtrak trains on the affected lines for three years following the transaction. This provision is to ensure that Amtrak passenger trains will continue to receive priority while operating on affected CSX and NS lines outside the NEC as the transaction is implemented.

Additionally, Amtrak and NS entered into a separate agreement that will allow Amtrak, on an interim basis, to carry certain express shipments on Amtrak trains that operate over present NS lines while Amtrak and NS pursue negotiations over a possible joint venture for the handling of express.

Amtrak also agreed to cooperate in NS' and CSX's plans to provide improved freight service on the NEC, provided that there is no adverse impact on safety or on Amtrak and commuter rail services, and without cost to Amtrak. The contemplated freight service improvements include NS' plans to increase Amtrak clearances in Maryland to permit double-stack trains to serve the Port of Baltimore. At the same time, the parties agreed to negotiate differential rates for day and night freight usage of the NEC to encourage nighttime scheduling of freight trains.

"Our new agreements with Amtrak are positive steps toward expanding competition and increasing the efficiency and growth potential of rail operations in the Northeast," said David R. Goode, NS chairman, president and CEO. "We are pleased to have Amtrak's support for the Conrail transaction, and we look forward to continuing our long and productive relationship."

The two freight carriers have also agreed to cooperate in publicly funded efforts to achieve high-speed service on Amtrak's route in Michigan between Chicago and Detroit and between New York City and Buffalo, N.Y.

Amtrak's NEC is the heaviest traveled railroad in North America, with 1,400 trains operating over some portion of the Washington-Boston route each day. Amtrak operates approximately 120 of these trains, while the bulk of the remainder are commuter trains operating in D.C., Maryland, Delaware, Pennsylvania, New Jersey, New York, Connecticut, Rhode Island and Massachusetts.

Approximately 20 through freight trains operate on portions of the NEC daily, while another 50 local freights serve the 165 industrial customers adjacent to NEC tracks. The vast majority of this freight train activity occurs on the southern, New York-Washington segment of the NEC.

Created by the federal government in 1971 to take over the rail passenger operations of the private railroads, Amtrak today serves more than 20 million customers annually on its national network of intercity trains and employs 23,000 people. Amtrak trains and connecting Thruway Motorcoaches serve more than 500 communities in 45 states. An additional 48 million customers use commuter services operated by Amtrak under contract regional transportation authorities.

The Next Step
Implementation Countdown
  20  days until STB hears oral arguments, June 4, 1998
  24  days until STB votes on application, June 8, 1998
  69  days until STB publishes its written decision, July 23, 1998
  99  days until the effective date of the STB decision and the Control Date, Aug. 22, 1998
109  days until "Day 1," the hypothetical Closing Date for NS planning purposes, Sept. 1, 1998

Notable
Four teams of Norfolk Southern "Ambassadors" visited eight locations on the Conrail system. On May 8, NS conducted a series of daylong visits with approximately 350 non-agreement field operating employees who received employment offers May 1. The teams made short presentations, answered questions and listened to feedback from employees. Each team included senior representatives from NS' Operations division and Human Resources department, and a recent NS hire from Conrail. Future similar visits are being planned.

Quotable
"The transportation map of the future will forever be different because of pivotal events in 1997. Restoration of balanced rail competition is under way in the Northeast, greater service options are developing for customers, and Norfolk Southern is poised and determined to usher in an era of growth and opportunity...Norfolk Southern has framed the structure for a surface transportation network with the potential to drive the nation's economy forward."

Yet the environmental, social and economic benefits of the restructuring could be jeopardized if rail service problems in the West lead to a new round of economic regulation for the industry. "It is incumbent upon us to show the world that we can overcome these service setbacks and move forward together without government intervention." - David Goode, NS chairman, president and CEO, at NS' annual meeting of stockholders, May 14

Conrail Heritage
Andrew Carnegie, one of America's most successful businessmen who is known as the "Founder of Libraries," once made his living as a telegraph operator on the Pittsburgh Division of the Pennsylvania Railroad, a Conrail predecessor line. An account documented in the Annuls of the U.S. Military Telegraph Corps notes that Carnegie, working the night shift at Cresson, Pa., and a colleague at a nearby Pittsburgh station began speculating about the electromagnetic nature of the atmospheric phenomenon known as the Aurora Borealis. They conceived the idea of disconnecting the battery from the telegraph circuit and "working" the wire using the electrical potentials available from the atmosphere. Thus, for about 45 minutes one particularly bright summer night, they worked the telegraph using the Aurora Borealis as a "battery."

Norfolk Southern Heritage
In 1883, Norfolk and Western Railway, an NS predecessor line, carried the first shipment of coal from the Pocahontas coalfields of West Virginia, to the mayor of Norfolk, Va. The arrival of this first carload was greeted with fanfare. A salute by the Norfolk Light Artillery Blues kicked off the festivities, followed by an official presentation of the car to Norfolk's mayor by Norfolk and Western President Frederick Kimball. The car was then detached from the train, decorated with bunting, and moved throughout the city. Residents followed the car, hoping to snatch a souvenir piece of coal. -Norfolk Southern

Today, Wisconsin Central will run an Office Car Special out of Schiller Park,IL to Waukesha,WI and return on the following schedule:

Train consist as follows:
Power:
WC GP40 3026 (Facing west)  These are the commerative engines.
WC GP40 3027 (Facing east)

Consist:
Amtrak 800197 Prarie Rose
GB&W 901      Algoma Country
SSAM 100      Montana

This consist operated out of Green Bay after the Operation Life Saver Trip of May 13 on T218-13  and will set out at Schiller Park this morning.

After arrival back at Schiller Park Friday, tthe following consist will be held at Schiller Park for display at Franklin Park, IL Railroad Days Celebration on Saturday May 16,1998.
The consist will include GP40's 3026 and 3027 with cars GB&W 901 and AC 77 Camp Car. Afterward the engines and two cars from Franklin Park will be sent west to Fond du Lac promptly for other passenger trips.

SSAM 100 and the Prarie Rose will be send west Friday night to FDL for clean up and service for up coming passenger trips. -Ray Weart

FOUR STATES WEST RAILWAY
As of 4:45 p.m. yesterday (5/14/98) ex-CP Rail 1803 was at SEPTA'S Wayne Electric Car Shops and was being readied for delivery to the West Chester Railroad - possibly today. It was on No. 8 track south just outside the
former wheelhouse, facing north. -H.O. Castleman

HUMMING BIRD EXPRESS
Birmingham Railroad Heritage Museum, Inc. will be operating the "Humming Bird Express",  a special Amtrak excursion train from Birmingham, AL to Nashville, TN, over CSX trackage on Saturday, May 16, 1998 and Sunday, May 17, 1998. The train will ready for boarding at 6:30 a.m at Birmingham's Amtrak station at 1819 Morris Ave. Departure northbound both days will be at 7:00 a.m., with a stop at Decatur, Alabama's Union Station at 8:30 a.m.,
arriving Nashville's Broadway Dinner Train station at the foot of Broadway on the banks of the Cumberland River at 12:00 noon.  Departure southbound from Nashville at 3:00 p.m., arrive Decatur 6:30 p.m., arrive Birmingham
8:00 p.m.  All times are Central Daylight Time. Roundtrip fares are $95.00. Train consist will be Amtrak Superliner and some privately owned cars.  Amtrak locomotives will serve as motive power for the train.

Passenger rail advocates in Alabama, Tennessee, and Kentucky are hoping to use the excursion as a springboard to call for new Amtrak service in the South, specifically Chicago-Florida through Louisville, Nashville, and Atlanta; and Cincinnati-New Orleans through Louisville, Nashville and Birmingham. This will be the first public passenger train operated over CSX's former L&N Birmingham-Nashville mainline since the discontinuance of Amtrak's "Floridian" in October, 1979.  -Ken McGarry