Selections from railroads, 1983

December 1, 1979 New Milwaukee Lines (ESOP) submits Plan to ICC.

December 10, 1979 John Wiles travels to Chicago - Re: Employee Stock Ownership Plan.

December 11, 1979 Jim Myers travels to Rock Valley, Iowa - To meet with Rail User Group, Canton to Sheldon, Iowa.

December 12, 1979 State Legislature's Interim Appropriations Committee authorizes a $460,000 Milwaukee Project Rail Users Fund to funnel local matching monies through the State to the Trustee for the Mainline Rehab. Project.

December 14, 1979 FRA and Division urge ICC not to accept New Mil Plan (ESOP) because it is not financially sound.

December 18, 1979 John Wiles travels to Washington, D.C. - Re: ESOP Oral Arguments.

December 31, 1979 ICC turns down New Mil ESOP Plan - financially unsound.

1980 ACTIVITIES:

January 2, 1980 Jim Myers applauds ICC decision to turn down the New Mil ESOP Plan.

January 7, 1980 FRA provides $50 million loan to Trustee to keep entire system running until March 1, 1980.

January 16, 1980 Governor Janklow presents a State Rail Program to the 1980 State Legislature including purchase authority for 800 plus miles of trackage, rolling stock and a subsidy for a private rail operator over the State owned system. The State core rail system would gateway with the Milwaukee Road at Aberdeen to flow east or west on the Mainline. The ICC recommended abandonment of 354 miles of Milwaukee trackage in South Dakota to the Court.

January 16, 1980 John Wiles travels to Chicago - 77B-8999 Oral Hearings on abandonment proceedings on S.D. lines.

January 17, 1980 Jim Myers travels to Chicago - Meet with 4 USDOT and FRA officials.

January 18, 1980 S.D. House passes a bill to deregulate railroad unanimously.

January 19-31, 1980 Governor and Democrats at State and national level argue about best approach to save rail service in South Dakota. Governor defends his rail program across the State.

January 22, 1980 The "New Milwaukee Lines" ESOP presents another plan to ICC for the Milwaukee Road.

January 23, 1980 Governor Judge of Montana says the State will issue $25 million in State bonds to buy Milwaukee Mainline from Miles City, Montana to Marengo, Wash.

January 30, 1980 State Legislature recesses for 1 day to discuss all aspects of the State rail problem - Worthington Smith, Milwaukee, and Garold Thomas, FRA address the Legislators.

January 30, 1980 ICC recommends to Court that all Milwaukee lines West of Miles City be abandoned.

February 3, 1980 Governor Judge of Montana applies to FmHA for a $55 million loan to buy Milwaukee Mainline between Miles City and Marengo, Washington. Montana legislative leaders unhappy about lack of legislative involvement.

February 5, 1980 Jim Myers warns that state rail legislation must be ready by March 1 because the Milwaukee will shut down on most lines in the State at that time.

February 11, 1980 S.D. Chamber of Commerce releases poll showing their members favor the State rail program 4 to 1. Jim Myers tells Sioux Falls Chamber of Commerce that no Federal "Lone Ranger" will arrive to save rail service before March 1st.

February 14, 1980 Bill Brodsky - New Mil Lines ESOP - sends letter to State Legislators saying New Mil has a better plan to save rail service in South Dakota than the Governor's Rail Plan. Governor Janklow says New Mil ESOP cannot guarantee rail service for South Dakota - will cost millions in subsidies. Jim Myers warns that many other rail lines in South Dakota are in jeopardy - not just Milwaukee lines.

February 15, 1980 State Legislature adjourns till March 12th without funding the State Rail Program.

February 25, 1980 Jim Myers travels to Washington, D.C. - With Governor Janklow to appear before the ICC at a formal hearing relative to ICC recommendations on Milw. reorganization plan.

February 29, 1980 Governor Janklow calls on State Legislators to find a compromise on State Rail Program and to return 2 days early to work out an agreeable package.

March 1, 1980 Judge McMillen orders embargo of services on 975 miles of Milwaukee track in South Dakota.

March 4, 1980 17 railroad companies and 15 rail labor unions agree on job protection measures for Rock Island and Milwaukee Road employees - (Miami Accords).

March 5, 1980 Jim Myers says the Division has negotiated interim service agreements with C&NW to service some Milwaukee track shippers in Rapid City, Mitchell, Sioux Falls and Dell Rapids - ICC authorizes C&NW service in Sioux Falls, Mitchell and Lake Preston on March 6.

March 11, 1980 BN announces it is negotiating a purchase package with the Milwaukee to buy 475 miles of line including Madison to Wentworth and Linton, North Dakota to Eureka, South Dakota. Division Attorney, John Wiles, quickly acts to insure that South Dakota's rail access to the West Coast at the Miles City Gateway is preserved - becomes part of the purchase agreement. North Dakota preserves wheat shipment through the gateway. Minnesota doesn't take any action at this time. Agreement also calls for Columbia coal trains to move over the Mainline from Miles City to Wisconsin.

March 12, 1980 State Legislature meets for last day - 13 hours of debate - pass compromise rail program - $25 million from 1¢ sales tax to purchase rail lines - but no rail operation subsidy or rolling stock purchases authorized. Approved $200,000 to study rolling stock utilization of shipper owned cars.

March 12, 1980 Public hearing at Bismarck on Basin Electric's proposed location for Sunrise Power Plant Project. 103 persons from S.D. attended. Governor Janklow support letter read, State Legislature's Concurrent Resolution read, and Trustee Ogilvie's letter read. (All pledging efforts to keep Milwaukee Mainline alive). The Trustee said the Line does not provide sufficient revenue at this time but it can become self supporting if States and local shippers help rehabilitate the Line. The Trustee is in the process of applying for 34.8 million in FRA loans for a major rehab. project during 1980-82.

March 14, 1980 Jim Myers says the Court will not order any directed service on Milwaukee lines.

March 15, 1980 Governor issues Executive Order making 1¢ sales tax effective April 1.

March 17, 1980 Court gives tentative approval for BN purchase of Milwaukee track. Agreement amended in Court to keep South Dakota's gateway west at Miles City for our products. Governor of Montana opposes sale.

March 19, 1980 ICC rejects all three Milwaukee reorganization plans - Liquidation, Milwaukee II, and New Mil (ESOP).

March 20, 1980 Trustee indicates they will submit a revised plan to ICC.

March 23, 1980 Service is embargoed on the bankrupt Rock Island Line.

March 23, 1980 Jim Myers travels to Washington, D.C. - To review impact of ICC Decision on Milw. Mainline with FRA and a planning meeting with Billig Law Office relative to actions pending before the ICC and the Bankruptcy Court.

March 24, 1980 FRA pledges cost to keep Milwaukee going until Trustee comes up with a viable reorganization plan - loans up to $50 million.

March 28, 1980 IRATE files in State Supreme Court to stop collection of 1¢ sales tax for state rail purchase.

March 28, 1980 Jim Myers travels to Chicago - To meet with Milw. Officials.

March 31, 1980 State Supreme Court prohibits collection of tax and places Jim Myers under Court Restraint - can't implement State Rail Program.

April 1, 1980 BN begins rail service to Madison.

April 2, 1980 Jim Myers travels to Chicago - With Governor to meet with Trustee Ogilvie relative to reorganization status of Milw. II.

April 8, 1980 Governor Janklow expresses concern that the proposed state rail system will be torn up before we can buy it because of Supreme Court order to delay.

April 10, 1980 Jim Myers says track in State rail system may be scraped because of Court Order.

April 12, 1980 Montana asks ICC to defer action of the BN purchase of Milwaukee lines.

April 14, 1980 LRC establishes a Special Committee on Railroad Operations - chaired by Senator George Shanard, R., Mitchell - study operating alternatives.

April 17, 1980 State Supreme Court rules the 1¢ sales tax is constitutional - begin collections May 1.

April 17, 1980 Jim Myers travels to Minneapolis - Meeting of DOT and rail planning personnel from 5 states to unify position on Milw. II.

April 28, 1980 John Wiles travels to Washington, D.C. - FRA briefing for upper Midwestern states on Milw. reorganization and meeting with PMM&Co., relative to Milw. Mainline.

May 2, 1980 Jim Myers travels to Bismarck, N.D. - Discussion with Milw. RR and power companies and the States of N.D., S.D., and Minnesota relative to Mainline.

May 6, 1980 Jim Myers warns that FRA officials are urging the Trustee to abandon the Miles City-Minneapolis Mainline.

May 8, 1980 Jim Myers says South Dakota is taking steps to counter FRA efforts to get the Milwaukee Mainline excluded from Milwaukee II. Division hires PMM&Co. to study economic alternatives for the line. State urging the development of unit train loading facilities on the line.

May 9, 1980 John Wiles travels to Chicago - Agreement between the State and the Trustee relative to Dell Rapids to Sioux Falls in U.S. District Court.

May 15, 1980 Trustee files a new reorganization plan with the Court. Plan calls for abandonment of New England and Sisseton branch lines. State and federal assistance needed for a $35 million rehab. on the line - marginal profits. Milwaukee II could show a profit by 1982.

May 15, 1980 Jim Myers tells Sioux Falls Transportation Club that a private operator on the State core system will need 4 to 7 years of subsidy before breaking even.