Railpax Questions and Answers
Introducing Rail Pax
New rail passenger corporation~now being formed-will provide service over basic nationwicle network shown on map at head of this article 1$ 1 Come May 1, many of the country's passenger trains start rolling for a new owner, The National ~ Railroad Passenger Corporation. Popularly called Railpax, the new corporation will take over and provide intercity rail passenger services across a basic coast-to-coast network. The questions and answers which follow explain how and why N.R.P.C. was created and what plans have been formu- lated for it so far. Q How was the National Railroad Passenger Corpo- oraion (NRPC) created? A This past October 14, Congress passed the Rail passenger Service Act, creating NRPC. The bill was then signed into law by President Nixon on October 20~ NRPC is not a Federal agency, but a 'for-profit corporation established under the District of Columbia Business Corporation Act. Q-What is the purpose of NRPC? A-NRPC's mission is "to prevent the complete aban- donment of intercity rail passenger services and to pre- serve a minimum of such service along specific corrI- dors" House Report 91-15801 NRPC is also charged with revitalizing rail passenger service across the na- tion on a sound financial basis modeled along private- enterprise lines. 0-What about railroads now running passenger trains? A-All roads are eligible to contract with NRPC to be relieved of further responsibility of providing pas- senger service. Lines joining the corporation will be involved only as contractors providing crews and operating 'facilities. But, of course, they do not have to join. If they don't, however, they must continue to run all trains now in operation-both within and outside the basic system-at least until January 1, 1975. Commuter operations are not included in the NRPC system. 0-Where will "Railpax" trains run? A-last November 30, Secretary of Transportation John A. Volpe announced in a preliminary report points and routes to be included in the minimum basic system. Principal cities across the nation are linked together by a network which will give rail passenger service to approximately 85 percent of what has been described as the Standard Metropolitan Statistical Area (SMSA) served by trains now presently operated by the various lines. The routes (see map at top of this article) reach from coast to coast and from the Great Lakes to the Gulf and Florida. Sixteen different rail passenger routes are proposed, the terminating cities described as "city-pair end points." Among the city-pair end points recommended by Secretary Volpe's November 30th report are Chicago to Miami and New York to New Orleans. The basic system is a minimum net- work, and NRPC is free to go beyond it, if additional services are warranted and if they are consistent with prudent management. 0-What type of service will be offered? A-Under NRPC service requirements, trains will be scheduled to serve markets at reasonable hours, con- sistent with demand. Running times shall be as fast as conditions permit, and trains will be scheduled over the selected routes one or more times daily in each direction unless patronage and other factors indicate such frequency is not warranted. Schedules, so far as possible, will be adjusted to provide convenient connections between routes. Through cars will be provided between each set of end points; food service and/or sleeping cars be offered, as dictated by length of trips or by over night schedules. 0-What's the timetable for getting NRPC going? A-Secretary Volpe's preliminary report setting forth recommendations for the basic national system went to railroads, the Interstate Commerce Commission, labor organizations, state and public utility commissions and other interested groups. All these bodies were,by December 30, to have offered comments on the Sec. retary's preliminary proposals. By January 28, Mr. Volpe must submit his final re. port, which will officially designate the NRPC system; On or before May 1, NRPC will then offer a contract to each railroad (or regional agency) now operating intercity passenger trains. Acceptance of such con tracts will relieve a railroad of its entire responsibiliy for intercity passenger service. Once NRPC gets going it can negotiate with railroads to provide the specified services: service requirements, station operations, main tenance and the type of payments required of joining lines. NRPC will be required to provide service over the basic network (which begins functioning May 1 1 until at least JuJy 1, 1973. A five-year moratorium mean while has been declared on halting intercity runs by lines which will have not contracted with NRPC. The moratorium expiresJanuary l~ 1975, and non-NRPC lines can then apply to discontinue their trains through normal discontinuance procedures. 0-What about equipment? A-The best of present equipment-cars mostly built since 1950-will become available from joining rail roads for use over the minimum network. This equiuip ment will be renovated inside and out, and the De- partment of Transportation hopes much of that work can be completed by May 1. Cars and locomotives for system will carry NRPC identification. New equipment will be introduced as rapidly as possible, and as the system is expanded. These cars wi11 be designed to increase the comfort and con- vinience of riders and contribute, it is hoped, to the growth and performance of the overall NRPC network. Q Who puts up the money for the new rail system? A Congress has authorized up to $40 million to get NRPC going while more money is expected to come from railroads joining the corporation. The funds are intended to cover organizational expenses, establish- ment of a reservation system, advertising, research, possible new track changes or connections, and the servicing, maintenance and repair of equipment. The Secretary of Transportation also is authorized to gurantee up to $100 million in loans to NRPC, and may help finance, through direct loans or guaran- tes up to $200 million, the costs to railroads con- tracting with NRPC. Railroads may figure costs for joining NRPC in one three ways: 1) 50 percent of fully distributed passenger deficits in 1969; 2) 100 percent of the avoidable loss of all intercity passenger service operated by them during the single year; or 3) 200 percent Qf the avoidable loss-also '69- intercity passenger services they ran between desig- ated points in the proposed NRPC network. These amounts may be paid by each railroad in Cash , equipment contributed, or by providing future service, at the discretion of the corporation. In return for payments, railroads will receive common stock in par value to their payments unless they waive right, in which case they would receive a tax deduction for the contribution. Q Who will manage the new corporation? A NRPC will be run by 15 directors and a 15-man offical advisory panel. They, in turn, will appoint officers of the corporation. Eight of the directors will ~appointed by the President; three selected by common (rail) stockholders, and four by preferred -rail) stockholders. Members of the advisory special panel will include representatives from rail- roads, banks and the public at large. Charles R. Yates, L&N s vice~president, finance, Atlanta, has been named to this panel. See "L&N'ens in the News" item on 28 telling more concerning Mr. Yates' appoint- to this very important body.) Q What about employees? A As earlier indicated, roads joining NRPC also will be involved in providing crews and operating Personal. Meanwhile, they are required under the new law to provide "fair and equitable arrangements to protect the interests of employees affected by dis- continueances of intercity rail passenger services." Q Are any L&N lines to be included in NRPC? On Secretary Volpe's preliminary report, possible routes via L&N are mentioned between the end points Chicago-Miami and New York-New Orleans. Q-Will L&N join NRPC? A-L&N is considering joining and is making studies as to its feasibility. Q-What's the future of rail passenger service in America under NRPC? A-In 1929, some 20,000 passenger trains operated through the United States. In 1970, there were less than 400, and over 100 were involved in discontinu- ance proceedings. America's reliance since 1929 on buses, airplanes and especially the private automobile is quite obvious. However, all these modes now face serious problems of their own. They simply will not be able to keep pace with future intercity travel needs. In approving legislation setting up NRPC, the House Interstate and Foreign Commerce Committee noted that, while intercity trains do not now carry a signifi- cant share of the passenger market, this highly serv- iceable transportation medium should not be aban- doned completely. "To solve the problems arising from the side effects of our several modes-such as pollution and conges- tion-we must preserve and improve railroad passen- ger service," the committee declared. "This legislation (Rail Passenger Service Act creating NRPC) thus en- visions a completely new effort to save and promote rail service."
Charles B Castner L&N;
