11/06/06 Grain rail hearing a "Tale of Two Cities"

Farm and Ranch November 6, 2006 Farmers and grain shippers have been at odds with railroads since the late 1800s. And after hearing from both sides at a hearing last week at the Surface Transportation Board, its chairman Charles Nottingham was reminded of a 19th century author. Nottingham: "I am sort of reminded of the great Dickens' piece of work "A Tale of Two Cities." We are hearing two very different depictions of what is going on out in the world between this panel the other panels. It is interesting but somewhat frustrating as well because we are here to try and get to the bottom of what's happening." STB vice chairman Francis Mulvey was reminded of an author too. Mulvey: "Well as long as we are referencing 19th century authors I'll recall Mark Twain with his "lies, damn lies and statistics." The STB had called the hearing in the wake of a GAO report which found that since the Staggers Act of 1980 rail freight rates generally have been lower, but grain rates have not followed that trend. A representative of Burlington Northern Sante Fe called the report old news based on old data and said if you adjusted grain freight rates for inflation, which the GAO didn't, they haven't kept up with inflation. Farmers and grain industry representatives at the hearing pointed out that shippers in numerous states are captive shippers and that the Class I railroads are making exorbitant returns on variable costs. Tomorrow, barley and the railroads. I'm Bob Hoff and that's the Northwest Farm and Ranch Report on the Northwest Ag Information Network.