|
|
|
|
|
|
|
||||||
|
|
 |
202-789-4365 ckolton@hdmk.org CSX 3RD QUARTER EARNINGS SHOW RAILROAD RICHES DESPITE CLAIMS OF WEAKNESS IN BLOCKING RAIL REFORM Confirms Recent Senate Report about Financial Strength of Freight Rail Windfall is Latest Example of Fleecing of Shippers, Says CURE WASHINGTON – CSX reported record third quarter earnings today of $414 million (or $1.08 a share), up from $290 million (or $0.73 a share) from the same period last year, the latest sign that the freight rail industry continues to enjoy robust growth. Despite this strong health, the freight rail industry is working to defeat bipartisan rail reform legislation on the basis that it is unaffordable. According to news reports, U.S. carload volumes are now just 11.2 percent below their April 2008 peak, while intermodal shipments are off only 2.4 percent from their peak. "The freight rail monopolies are booming as the rest of the country remains mired in recession and joblessness. Instead of continuing to fleece farmers, manufacturers and consumers, we hope the railroads drop their opposition to reasonable regulatory reform and work towards a fair solution," said Glenn English, Chairman of Consumers United for Rail Equity (CURE), a coalition of freight rail customers seeking changes in federal law to allow for more competitive railroad pricing and reliable service. "Despite the railroads' consistent claims that they must rely on private capital for their infrastructure, companies like CSX continue to receive billions of dollars in federal stimulus money to upgrade their track systems for possible future high speed passenger rail service and for other infrastructure improvements. At the very least, the railroads shouldn't be getting any more corporate welfare and precious tax dollars until this issue is addressed," continued English. A recent report by the Senate Commerce Committee concluded that the railroads are some of the "most highly profitable businesses in the U.S. economy," but found a consistent pattern over the past several years of the railroads downplaying their success to the federal government in order to preserve regulatory protections. The railroads then use these protections to extract excessive rates from American businesses and farmers. For more information about CURE, please visit www.railcure.org. |
|
 |
