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THEY HAPPEN IN THREES

In the 24-hour period between 20:00 ET on April 27 and 20:00 ET April 28, Conrail experienced a rash of bad luck.  On late Friday night, PIES-7 was heading in track #44 at Enola Yard when they went into emergency.  A short time later, it was determined that at least one 86-foot auto parts box car was on its side while the other had derailed one truck.  This delayed traffic in the yard but did not shut down any routes.  While Hulcher was called to handle this, their job was not done at Enola.  On April 28 at approximately 07:00 ET, PIOI-8X with Conrail SD80MAC's 4117 and 4115 derailed at least fifteen cars near Latrobe, PA.  The derailment initially closed the Pittsburgh Line.  Conrail utilized the single track Conemaugh Line to route freight between Harrisburg and Pittsburgh.  Panel track was laid through the site late last evening with traffic moving through the site early this morning.  The final incident involved the OCS-102 train.  Conrail E8A 4020 struck two pick-up trucks that were too close to the main.  The incident occurred just after entering the Royalton Branch at milepost 6 in Bainbridge, PA.  Damage to the E8A was reportedly minor and the train continued to Enola for repairs.  The OCS trips are going to continue on the tour schedule. -Kevin Burkholder, Bill Gingrich

WHICH WAY DO THEY GO?

With "Merger Day" growing near, speculation about the locomotive "break-up" continues.  Conrail sources have indicated that most of the GP38/GP38-2 fleet will remain CONRAIL under the Shared Assets Group.  Apparently the Conrail name will be retained for the Shared Assets Group.  Conrail will also retain much of the remaining SW1500 fleet.  Another recent "claim" by the railroads has the SD50 fleet going to CSX and the SD60 fleet going to Norfolk Southern.

STEEL BUSINESS BOOMING

Conrail's steel slab business is at an all time high.  Several daily unit steel trains are departing Philadelphia for various points in the Midwest.  In addition to high traffic levels on current trains, a new set of trains was introduced yesterday: PJE-03 and JEP-04 between Philadelphia, PA and Joliet, IL.  The first PJE-03 headed west last night with a mix of Norfolk Southern and Conrail gondolas.  -Kevin Burkholder

OCS TRAIN BUSY WEEK

Both trips of the Office Car Special train have begun their week-long tours.  Trip #1 has departed for several trips on the Pittsburgh and Dearborn Division.  The consist for trip #1 is E8A's 4022 and 4021 with 9 cars including the #55 dome car.  Trip #2 has made it to Philadelphia for the beginning of its journey over the next few days.  This trip will be operated by E8A 4020 and cars 5 and 1.

You can also view the other Office Car Specials on tap for all of next week:

TAKE ME TO OCS TRIP 1

TAKE ME TO OCS TRIP 2

Conrail reserves the right to change or alter the schedules as they deem necessary.
-Kevin Burkholder

CPR AMALGAMATION OF EASTERN SUBSIDIARIES

Canadian Pacific Railway (CPR) announced yesterday a proposed amalgamation of its wholly-owned subsidiary St. Lawrence & Hudson Railway Company (St.L&H) with two other CPR subsidiaries dating from the late
1800s.

The two companies are the approximately 80%-owned Ontario and Quebec Railway Company (O&Q) and the 68%-owned Toronto Grey and Bruce Railway Company (TG&B), both of which have been inactive since 1884, when all their assets were leased to the CPR. The O&Q lease is perpetual, while the TG&B lease is for 999 years.

The amalgamation will be implemented by way of a plan of arrangement under terms of the Canada Business Corporations Act and will be subject to court, shareholder and regulatory approval.  The amalgamated company will be a wholly-owned subsidiary of the CPR and will be named the St.Lawrence & Hudson Railway Company Limited.

Under the arrangement, O&Q shareholders will receive for each O&Q share their choice of either a number of Canadian Pacific Limited (CPL) shares having a value of $650, or a special share redeemable for $650 in cash.  Each O&Q share receives a fixed annual dividend of 6% on its $100 par value, which is paid by CPR.  TG&B shareholders will receive for each TG&B share of $100 par value their choice of either a number of CPL shares having a value of $100, or a special share redeemable for $100 in cash.  No dividend has been paid on the TG&B shares for more than a century.  Holders of other securities involved in the arrangement, the O&Q 5% permanent debenture stock and the TG&B 4% first mortgage bonds due 2883, will be paid at par.

The amounts to be received by security holders represent substantial premiums over market prices.  It is anticipated that shareholder meetings will be held in June and, subject to necessary approvals, the transaction is
expected to be completed towards the end of that month. -Canadian Pacific

CPR EXECUTIVE TRAIN

Canadian Pacific Railway, following the lead of most other North American railroads, is  going to be placing a set of FP9's in service to power its Executive Train.  The F's have been working on the former Chicago & Northwestern Cowboy Line in Nebraska and South Dakota for Nebkota Rail.  Other options were explored by CPR with ex-Chicago & Northwestern F7's and Wisconsin Central FP9's looked over.  The CNW units were reportedly in "poor" shape and Wisconsin Central is not interested in selling their fleet.

CPR will base the units out of Calgary but will assign them to system-wide service on Executive Specials.  CPR apparently hasn't made up its mind if they are going to ship them directly to Calgary or to Independent Locomotive Service at Bethel for a paint job.  The CP is still in the paperwork state - won't be moving for at least 10 days at the earliest. -George LaPray (GM of Nebkota)

SCHOLARS HONORED BY CSX

CSX Chairman and CEO John W. Snow introduced the inaugural class of ten CSX Scholars during the CSX Corporation (CSX) annual meeting at The Greenbrier at White Sulphur Springs, WV.

The Scholars Program is an innovative program designed to enhance the educational and career opportunities of exceptional students pursuing degrees with an environmental emphasis at member institutions of UNCF and other targeted historically black colleges and universities. CSX designed the CSX Scholars Program in cooperation with the National Audubon Society (Audubon) and The United Negro College Fund (The College Fund/UNCF). CSX committed $1.5 million over three years to launch the initiative.

"This is a very select group and we are honored to have each of them in the program," Snow said. "We have high hopes for the program and each of our scholars," he added.

The Scholars, listed with their colleges and hometowns, include:

Keysha Curry, Alabama A&M University; Huntsville, AL Sabrina Lewellen, Florida A&M University; Jonesboro, AK Shaminique Bodie, Wiley College; Nassau, Bahamas Erika Sheppard, Paul Quinn College; Miami, FL Claudia Boucher, South Carolina State University; Brooklyn, NY Jason Barber, South Carolina State University; Columbia, SC Rashad Darby, South Carolina State University; Cordova, SC Dale Tyson, Claflin College; Trinidad, W.I. William Bowman, Edward Waters College; Racine, WI Delia Brennen, North Carolina A&T University; Long Island, NY

Open to rising college juniors, seniors and, this fall to graduate students, the program's goal is to encourage study of the environment and to expose UNCF students to career opportunities in the transportation and environmental fields. Students selected will receive full one year renewable scholarships and paid summer internships at CSX and Audubon.

As part of the program, each scholar is paired with an academic mentor from his or her college and a professional mentor from CSX or Audubon.

"This program will offer one of the best combinations of educational assistance and practical training available," Snow said. He explained that CSX created the program as a means of demonstrating the company's commitment to the environment and its interest in exposing talented minority students to career opportunities in transportation.

"Sound environmental stewardship is extremely important to us and to the future of our transportation business," Snow said. "We have a commitment to the environment, and a commitment to building a work force that reflects the people in the communities in which we operate." -CSX Corporation

SHAREHOLDERS ELECT BOARD

Shareholders of CSX Corporation yesterday elected 11 members to the company's board of directors.

Elected to the board were Elizabeth E. Bailey; Robert L. Burrus Jr.; Bruce C. Gottwald; John R. Hall; Robert D. Kunisch; James W. McGlothlin; Southwood J. Morcott; Charles E. Rice; William C. Richardson; Frank S. Royal; and John W. Snow, chairman, president and chief executive officer of CSX.

In other actions at today's Annual Meeting of Shareholders, the appointment of Ernst & Young LLP as the company's independent certified public accountants was ratified; the amended 1987 Long-term Performance Stock Plan was approved; and the non-binding, advisory shareholder proposal regarding Shareholder Rights Plan was approved. -CSX Corporation

NEW SIGNALS FOR OLD RAILROAD

CSX signal crews are replacing several cantilever signal installations on the North Mountain Subdivision. Signals at MP 222 (near Staunton) and at the east end of Crozet have been replaced with left hand ground masts. The new signals are the "Safetrans" design common on the NS, with small targets instead of the wider targets more common on CSXT. Another new signal installation has been placed in service at Howardsville on the Rivanna Subdivision. These heads have the bigger targets. More of the cantilevers may fall as they cost more to maintain than ground masts. Another remnant of the steam and long hood forward days is disappearing. -Paul Wilson

  CN POISED FOR THE NEXT CENTURY

Canadian National is forging a North American rail system for the 21st century by penetrating southern U.S. rail freight markets and expanding its reach in the U.S. Midwest, says CN President and Chief Executive Officer Paul M. Tellier.

CN's recently announced merger with Illinois Central Corporation (IC) and marketing agreement with IC and Kansas City Southern Railway (KCSR) are essential to prepare CN - and its customers - for new opportunities in the next century, Tellier told share-holders and employees at the Company's annual general meeting today. Specifically, the transactions will:
 

• Position CN to take full advantage of rapidly growing north-south freight traffic;
• Inject new rail competition into the market place, and
• Benefit shippers by giving them access to new North American markets.
CN and KCSR have also signed a separate access agreement regarding haulage and trackage rights, which is contingent upon United States Surface Transportation Board approval of CN's merger with IC. CN is confident that the STB will recognize the strengths of the end-to-end CN-IC merger.

Tellier said the decisions to penetrate U.S. freight markets more fully reflect the new CN, a railway that is "bold, resourceful and focused ... and driven by the need to pro-vide service to customers and to increase shareholder value."

Tellier stressed that nothing in the Company's U.S. expansion will "diminish CN's commitment to serve the customers who rely upon our east-west network in Canada. We've invested heavily in improving our east-west flow and we will continue to do so."

Tellier reminded shareholders that CN had the best year in its history in 1997, after a record year in 1996. Revenue, carloads and on-time performance all reached record levels last year, with CN also posting its best-ever safety performance.

Progress continued in the first quarter of 1998 with net income of $104 million, com-pared with net income of $71 million for the year-earlier period. During the most recent quarter, CN also recorded a substantial year-over-year improvement in on-time train performance and accident and injury rates.

Despite its achievements, CN is still a work in progress, Tellier said. CN's operating ratio - a key measure of financial performance in the rail industry - is still more than 10 points behind the leading North American railway; labor productivity is 35 per cent be-low the best in the U.S. and the competition's performance continues to improve.

Tellier said cost reduction - the thrust of the turnaround strategy launched by CN in 1992 - will remain a focus of management, but so too will a more recent and growing emphasis on disciplined, profitable revenue growth. -Canadian National

  COULD IT BE?

New York Susquehanna & Western SD70M 4050 is heading back east on Union Pacific with a May 1 ETA in Proviso, IL.  Could the unit head home from there?  Will UP continue to hold the 4050 captive?  Will the 4050 see more virgin territory for NYSW units?  Time will tell...  -Kevin Burkholder

EXCURSIONS

RAIL TO THE FAIR COVERS RARE MILEAGE

The seventh annual RAIL to the FAIR excursion from Philadelphia to the Delaware State Fair at Harrington will operate on Saturday, July 25th. The air-conditioned, chartered Amtrak train is tentatively scheduled to leave 30th Street Station at 9:00 am and arrive at the fair at 12:37 pm.  Intermediate stops to pick up passengers will be made in Delaware at Claymont, Wilmington, Newark, Middletown, and Dover.

The train will operate on Amtrak's Northeast Corridor Line from Philadelphia to Newark, then follow the normally freight-only Conrail Delmarva Secondary line the rest of the way to Harrington.  For those especially interested in traveling over rare mileage, the train will continue over Conrail's Indian River Secondary line to Frankford and then return to Harrington.

The train is tentatively scheduled to leave the Harrington fairgrounds at 5:45 pm and arrive back in Philadelphia at 8:48 pm.  Round trip adult fares from Philadelphia are $47.50 to Harrington and $67.50 for those continuing on to Frankford.  Fares from intermediate stops are lower, children age 10 and under pay less than adults, and those 2 and under who share a seat with an adult ride for free.  All passengers get free admission to the State Fair.

Detailed information on the trip is available by calling (302)  577-3278, option 5 or by writing to Delaware Transit Corporation, RAIL to the FAIR, 400 South Madison Street, Wilmington, Delaware 19801-5114. -Delaware Valley Association of Railroad Passengers

Please check this location daily, as new information will be posted, as it becomes available. If you have news to report or information regarding railroads in the Eastern United States, please send e-mail to Kevin Burkholder at KBurkholder@psghs.edu