Executive Report
By BRIAN T. TOWNSEND

ONCE again, someone has stepped in to rescue the Rock Island Railroad. The federal Railroad Administration is presently making temporary authority service available to the bankrupt railroad. Authority groups, approved by the Interstate Commerce Commission (ICC), subsidize bank-rupt lines and have the option of buying the raiload. Fifteen railroads are conducting emergency service on the Rock Island lines until May 31. Portions of the line which did not obtain the temporary authority service began to feel, in late March, the effects of an embargo on shipments outside the system which went into effect March 15.

Chicago commuters were also saved by a last minute agreement reached March 23 by the Regional Transportation Authority (RTA)and the Chicago Northwestern Railroad. The agreement allowed Northwestern to operate the 40-mile Rock Island commuter line with subsidies provided by the RTA and prevented a labor walkout that was scheduled to begin March 24. The Northwestern, which serves as a commuter and freight line, will service the Rock Island until June 2.

Rock Island service had been operating under ICC direct service since September 1979. A direct service order authorizes another railroad to manage a bankrupt line while the ICC pays operating deficits with federal subsidies for a limited period of time. In the Rock Island's case, these deficits amounted to about $300,000 a day. The ICC extended direct service 21 days after operations were scheduled to cease March 1.

The Rock Island provides service for 14,000 commuters and 300 businesses, affecting nearly 3,000 employees in Illinois. Borg-Warner Chemical, DuPont, Caterpillar, B.F. Goodrich, International Harvester, the Locomotive Division of General Motors and Sherwin-Williams have used the Rock Island as a major form of transportation.

Gov. James R. Thompson has joined with 11 midwestern governors to push for federal legislation aimed at insuring continued service on the bankrupt Rock Island lines. Shippers and receivers who depend on the Rock Island are also backing the federal legislation which would settle labor and financial questions blocking the purchase of the Rock Island by other railroads and insuring continued service.

Temporary authority groups interested in buying portions of the Rock Island system — and the RTA, which wants to buy the 40 miles of commuter line — are hoping for swift passage of the legislation which primarily concerns labor protection for Rock Island workers who want to remain on the job after the railroad is purchased by a new owner. A 45-day service extension period by the ICC is also being sought in the proposed federal legislation. Senate Bill 6519 has already passed the Senate, but House Bill 2253 has been "trapped in the House," according to Linda Murdock, a spokesperson for the Illinois Department of Transportation's bureau of railroads. Murdock said railroad matters, unrelated to the Rock Island situation, are attached to the bill and are complicating matters. She added that eastern congressmen have shown little enthusiasm for the bill which they feel only involves the Midwest.

The Rock Island isn't the only troubled railroad serving Illinois. On March 1, an embargo went into effect for all service on the Milwaukee Railroad. All operation has ceased, and no groups are interested in taking over the Milwaukee line which largely serves agricultural areas. Murdock said, however, that the shutdown is not yet crucial because of the season of the year.

The Illinois Central Railroad is just beginning to experience the problems of the Rock Island and Milwaukee railroads. The Illinois Central is neither bankrupt nor under embargo, but several lines have been abandoned, and there has been talk of selling the IC to other lines. It appears that Illinois' financially troubled railroads still have a lot of rough track to travel.

May 1980/Illinois Issues/27