December 11, 1973
Page 40708
RAIL SERVICES ACT OF 1973
The Senate continued with the consideration of the bill (S. 2767) to authorize and direct the maintenance of adequate and efficient rail services in the Midwest and Northeast region of the United States, and for other purposes.
Mr. MUSKIE. Mr. President, in the midst of the energy crisis, we in the Senate today are considering legislation to deal with a crisis of similar magnitude for our Nation – the crisis in rail transportation. Unless the Federal Government acts, the rail transportation network of the Northeast and near Midwest will collapse in the bankruptcy proceedings now in progress. The bill we consider today, S. 2767, the Rail Services Act of 1973, would prevent that drastic
short-term result. I hope it also leads to a long-term future of sound health for our Nation's rail transportation system.
For years, we have ignored the consequences of the deterioration of our rail network. As with other issues of economic development, our transportation growth has been marred by the lack of a sound transportation growth policy. We have ignored the declining health of the railroads, and ignored the consequences of their difficulties – the effect of diminished rail services on our environment, our population growth patterns, and on the future health of our economy.
Under S. 2767, the reorganization of affected railroads would be in the form of a final system plan setting out which rail properties would be continued and which would be abandoned. The plan would be developed by the Department of Transportation with the commentary of a new Railroad Emergency Planning Office within the ICC, within 300 days after enactment. This final system plan would be adopted by the Government National Railway Association. It would then be submitted for approval within 120 days to a new special three-judge court, before which all rail reorganization suits in the region would be consolidated. Congress would have the right to disapprove the plan. Upon approval of the plan, and financing by the Government National Railway Association, the affected railway properties would be turned over to the United Railway Corp. to be operated. The Government National Railway Association would finance the operation through federally guaranteed debt securities up to a limit to be established by Congress.
In addition to the organization of the United Rail Corp. and the Government National Railway Association, the bill provides for a variety of operating subsidies, equipment improvement loan programs, and other measures to aid the rail system. It provides initial emergency assistance to affected railroads, and in guaranteed loans, to carry those railroads through the formative periods; subsidies for rail operations, to be given on a 75-25 matching basis to States who choose to subsidize rail operations which otherwise would be abandoned under the reorganization; guaranteed equipment improvement obligations, to be administered by a new Obligations Guarantee Board in the Department of Transportation; a computerized National Rolling Stock Information System; and a new Railroad Equipment Authority – established as a new Federal independent agency – authorized to fund new rolling stock. The bill also provides for employee protective provisions, to give liberal support to displaced rail employees. The bill in addition contains a worthwhile provision which directs the ICC and Federal Maritime Commission to impose freight rates favorable to recyclable materials and allows the EPA to intervene in such proceedings.
Mr. President, finally, I give my support to an amendment to this bill which would provide for study of a plan for consolidation of all American railroads under a single private corporation.
This innovative plan was first advanced by E. Spencer Miller, president of the Maine Central Railroad. The study hopefully will provide us with evaluation of at least one option for a national solution to our rail transportation problem.
I give my support to the Rail Services Act in the hope that it will create a new era of health for rail transportation.