Track Warrants

"The Electronic Internet Newsletter of Western Railroading"
P.O. Box 720301
San Jose, CA 95172
USA

Issue No. 23

July 4, 1996


Steve Sloan
Send news, correspondence and images to: stevesln@aimnet.com
(Alternative for photos for web posting: stevesln@aol.com)


The web version of this photo of BNSF 9297 origionally posted on :
http://www.en.com/users/brianr/bnsf.jpg

EDITORIAL

Kodawoes and other stuff
Kodak has quietly discontinued Kodachrome 64 film in 120 size and, I am told, Kodachrome 40 Tungsten in 35mm. I have been told Kodak is committed to the Kodachrome line but am disturbed by the recent downsizing of the Kodachrome family. Kodachrome is the film that made Kodak. It is the film of railfanning as well as the historic film of choice of publications such as National Geographic. Why?, because it gives good color without garish contrast, because it is accurate and, most of all, because it lasts!

I wish Kodak marketed these attributes more. Perhaps they don't because they also make films that do not share the attributes of Kodachrome and they don't want to take away from these films.

If so that's too bad. I personally believe Kodak is missing an opportunity. Kodak is the sole producer of Kodachrome type K14 films. When Kodachrome films loose market share, other films, using a process shared by Kodak's competitors, gain market share. There are some things about business I obviously do not understand. How does Kodak come out ahead in this equation? As for me, I will continue to shoot Kodachrome as long as I can get the film (and get it processed.)

On another note...Susie (my wife) had her list of honey-do's ready for me after I graduated. My sons & I poured concrete, put a floor in the attic (and our family had a heck of a party!) Oh yea, we got the train layout set up. As I type my middle son is running double headed SP steam in the garage.
Steve

PS-To the Santa Clara Chapter of the NRHS: Thanks for inviting me to show slides on the 21st. That was a lot of fun.


AMTRAK

SUNTAN CANCELED
Jun27--Bad news for the Cruz. Henry Luna, Excursion Director for PLA and Key Holidays has informed me that the Suntan Special to Santa Crux for August 24th has been canceled. The railroad feels that this is not the best time for an excursion train to Santa Cruz. The future may hold hope.
(To close to the merger???)
Vic Neves

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IS IT HOLLYWOOD, OR IS IT A REAL TWISTER?
May31--The AMTRAK from Chicago was delayed by two hours into Denver Friday (5/30/96) morning by tornado damage among other things.

Several spectacular tornadoes occurred about 5 p.m. (MDST) on Thursday evening, including "sisters". These twin funnels danced over primarily rural Colorado plains area near Ft. Morgan. Damage bypassed the populated town areas and impacted on a house and barn. Also included in the wind/water impact were railroad signal outages.

Does Speilberg have good movie release time sense or what?
Eric Sondeen, Littleton Fire; Colorado Operation Lifesaver (Railroad Safety)

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I STREET BRIDGE CLOSED AGAIN???
Jun26--Overheard conversation on SP PBX a few minutes ago regarding Amtrak #728 terminating at Davis tonight (6/26/96). #726 was to deadhead from Sacramento to Davis after discharging passengers.

Is this another I Street Bridge closure? If so, look for Amtrak #11 to shuffle on down the West Valley Line again tomorrow morning.
Matthew Vurek

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RE: I STREET BRIDGE CLOSED AGAIN???
You were correct, Homeboy. We were routed down the west valley line for our return Starlight trip today. The CalNorthern Pilot was put on at Dunsmuir (Why so far north?) and when the headend crew told the conductor that the pilot was aboard and he was advising 3 hours 15 minutes running time from Gerber to Davis, I realized what was in store for us. This was just as the train was leaving Dunsmuir (on time) sometime around 0130 hours or so. Neat trip what I saw of it during daylight, but slow.
James Groenke


BNSF

STAMPEDE TROUBLES
Jun27---With reference to all the community problems BN is having in the Green and White River Valley towns and cities because of their Stampede problems.

Some years ago the city of Wildwood FL gave whatever the name of the railroad was that week (SCL, FL, SBD, CSX -- I am not sure. I don't think they were either.) a lot of grief over plans to expand the facility there to replace Baldwin, Moncrief, Lakeland, as THE major FL class yard and service center. In fact Wildwood, which is not as large as "metro Sea-Tac," really made life difficult and simply would not compromise. At the time it was a major crew change point, a diesel shop, a car shop, an engine service area, and a serious classification point for trains to and from Miami via Auburndale or Tampa via Lakeland as well as the terminal for four daily locals. The railroad could not get to first base.

Guess what is left at Wildwood in 1996? Nothing. The depot stands, to be sure, and the signal maintainer and roadmaster use it for supply storage. And you can catch an Amtrak train there, but there are almost no freight crew changes, only one CSXT employee on the day shift--if he is still there--and none at other times, no engine track at all, no car shop, and almost no yard -- there is an interchange with the FL Central. Wildwood looks like an impoverished ghost town with a huge hole on the west side where the railroad was. Even the line to Miami via Auburndale is dug up.

That's what Wildwood wanted; that's what Wildwood got.

Seattle and Tacoma want to compete with Long Beach/LA, Portland, and Vancouver for container traffic. If they do not get behind the Stampede line, then in another decade their ports may look like a very wet, brackish Wildwood.
Wayland Y. Brown via John Kinzel via The Railroad List (edited for length-Steve Sloan)

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BNSF DEDICATES EXPANDED SAN BERNARDINO INTERMODAL FACILITY
Jun17--BNSF today dedicated its expanded San Bernardino Intermodal Facility, located at 1535 West 4th Street, at an 11 a.m. ceremony. The $30- million, four-year expansion project increases trailer and container freight handling capacity at San Bernardino more than 150 percent, to more than 400,000 units annually. Intermodal traffic volume, the movement of trailers and containers on railcars, has increased at San Bernardino from 35,000 units in 1989 to 160,000 in 1995.

Four overhead cranes and one side-loader Piggy Packer are used to load and unload trailers and containers onto or off of railcars at San Bernardino. The facility is lighted, fenced, landscaped and has a security system that includes 40 surveillance cameras. A new, 10,000-square-foot intermodal operations office was constructed, in addition to a checkpoint with 14 truck lanes and 12 checkpoint stations capable of processing a total of 100 trucks-per-hour.

BNSF is investing $1.9 billion in facilities, track and equipment in 1996. Since 1993, BNSF has invested nearly $100 million for new, expanded or upgraded facilities and track in the San Bernardino area, including a new bulk commodity transfer facility, a new automobile distribution center, additional main line track, signal system improvements and track realignment. In cooperation with Southern California's commuter rail agency, Metrolink, BNSF worked out an agreement which allowed construction of a fly-over structure so commuter trains can arrive and depart San Bernardino efficiently, without any delays.
via James Czarnecki and Brian P. Kreimendahl

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SEATTLE APL/INTERMODAL NEWS
Jun19--- U.S. Transportation Secretary Federico Pena joined Port of Seattle, business and community leaders today to break ground for an expanded $260 million container-shipping terminal for American President Lines, its partners and clients, a project that will strengthen Seattle's position as an international trade gateway and create as many as 1,500 new jobs.

When completed in 1998, the expansion will nearly double APL's existing Terminal 5 in the southwest harbor from 83 acres to 160 acres with an option for an additional 30 acres. Increased container traffic through the expanded terminal is expected to generate an additional $220 million annually in business revenue for the region.

In addition to APL cargo, the terminal is expected to handle cargo volumes for the company's global alliance partners: Orient Overseas Container Line and Mitsui O.S.K. Lines Ltd. The terminal also will serve other customers of APL's stevedoring unit, Eagle Marine Services, Ltd.

The terminal will feature the latest in container- handling technology designed to speed the transportation of goods. On- dock rail facilities will allow the terminal operator to assemble two full trains at the terminal. The existing dock will be extended by 400 feet.

The Port will provide nearly six acres of public access along the shoreline, including parking, a paved pathway and view tower to observe terminal operations. The Port also is creating new fish and wildlife habitat along the shoreline.
via Brian P. Kreimendahl

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NEW LOCOMOTIVE PAINT SCHEME FINALIZED FOR GE ORDER
FIRST UNITS TO BE DELIVERED IN MID-JULY
Jun19---The new BNSF paint scheme, featuring Great Northern, Northern Pacific, Burlington and Santa Fe predecessor colors -- orange, forest green, red and silver -- was well received in the trial run of locomotive 9297 during the past two weeks. As a result, it will be used on the previously announced order of 164 new General Electric Dash-9 locomotives with some minor modifications: A 3-inch-wide red pinstripes that runs from the nose to the rear of the locomotive will be used on both sides of the engine, as it garnered the most votes from employees; and -- the new BNSF logo on the nose will be green and orange when you see these new Dash-9s. "Initially, this paint scheme will be used on these GE locomotives, which will operate primarily on the Northern Lines," says Vice President and Chief Mechanical Officer Carl Ice. "For now, we plan to continue to use the red and silver "warbonnet" scheme on the General Motors' EMD SD-75s and to keep the SD-70MAC colors too."

New freight cars will display the new BNSF logo in white with the words picking up the car's basic color, red, green or aluminum, for example. All car numbers will also be in white.

Later in the year, we will determine which paint scheme will be used on the other former BN and Santa Fe EMD and GE line-haul units, Ice indicated.

With regard to the new BNSF logo, guidelines are being drafted for its application to letterhead, business cards, sinage, brochures and merchandise. Those guidelines will be available later in June.
Leonard Ruback, via L. G. Ruback [ On Track Ltd ]

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TWO RATHER SPARKLING WARBONNETS
Jun15---Passing by Clyde Yard in Cicero, IL on the way home from Chicago, I noticed two rather sparkling warbonnets near the diesel house. Upon further inspection, the two locomotives were actually two GP60M's, 124 & 107, painted in the red and silver paint with BNSF on the hoods. I wasn't able to stick around long enough to see if they left on a train. There is a nice repainted ATSF GP30 working the east end of the yard.
dslattery, via L. G. Ruback [ On Track Ltd ]

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BNSF AT PADUCAH
Jun14---VMV shipped out 2 ATSF GP60M's this morning wearing fresh warbonnets and new BNSF lettering on the sides(similar to the SD75M's). The lead unit on BNSF train 448 this morning was GP60M 107. (I didn't catch the unit number on the second GP60M).

Also, IC is sending their SD70's back through Paducah for warranty repairs and they're reportedly looking at GE's if they decide to purchase new units this year. Some speculation is that they'll pick up more ex-BN SD40-2's though.
Chad Cowan

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CF-7
Jun12---I am preparing a magazine article and hopefully a full-length manuscript on the CF-7 locomotive which was rebuilt in Cleburne, TX. Many of the units have ended up on shortlines and I would like to seek the assistance of members of this railfan group. In preparing the book, I would like to include as many paint schemes as possible. I am asking the members of this discussion group to circulate my request for slides on the shortlines, particularly those of New England. Being in Texas, I have a good number from this area and the southeast, but New England is a bit out of my area.

And lastly, would anyone know the address of the Anthracite Historical Society of Pennsylvania. This museum (?) holds the very first CF-7, the #2649. Thank you in advance for any help, advice, or direction you can forward to me. Email address is attached, snailmail address is as follows.
Cary Poole, 1714 Kansas Ave. San Angelo, TX 76904 915-942-6111 (h)
Cary.Poole@Rampo.Angelo.Edu

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BNSF BAKERSFIELD/INTERMODAL NEWS
Jun08--A sign marking the future site of the "gateway to the world" went up at the edge of a carrot field between Bakersfield and Shafter.

The site, at the northeast corner of Seventh Standard Road and Santa Fe Way, has already been named part of the Department of Commerce-designated Worldport Los Angeles foreign trade zone, meaning companies operating within that zone can assemble goods with foreign parts and avoid duty taxes until the products are sent to market in the United States.

Ron Wareham and Joe Baker, co-owners of the center, hope to break ground before the end of the year.

The intermodal facility would take 125 of the 1,740 acres the center may occupy once it is completed. Kern County already is the 11th largest trade area among the Western states, even ahead of Fresno, according to data from the Department of Commerce.
via Brian P. Kreimendahl


EMD

EMD+SIEMENS
Jun27-- General Motors Electro-Motive Division and the Transportation Systems Group of Siemens AG have signed a letter of intent (LOI) to pursue the feasibility of establishing a joint venture of their diesel locomotive businesses. The LOI was signed earlier this week by R. William Happel, vice president, General Motors Corp., general manager Electro-Motive Division, and Wolfram O. Martinsen, president of the Transportation Systems Group and member of the Managing Board of Siemens AG. The joint venture would design, manufacture and market diesel locomotives worldwide.

Electro-Motive Division (EMD) and Siemens jointly introduced heavy-haul (freight) AC traction technology in North America in 1985 and in January 1994 won the largest locomotive order in the world totaling nearly $1 billion from the Burlington Northern Railroad.

"This potential joint venture would be a natural evolution of the successful work that we have done together and would build on that strong foundation for success in global markets in the future," Martinsen of Siemens said. "It would solidify the long-standing working relationship between our two companies. In short, we are looking to expand and build upon a relationship that has been mutually beneficial."

The joint venture discussions contemplate that General Motors' Diesel Division locomotive operations in London, Ontario, would be aligned with Siemens' diesel locomotive operations in Kiel, Germany. Similarly, the diesel locomotive design and sales organizations of the two companies will also be aligned. GM's Happel said the parties expect that General Motors would retain a majority stake in the joint venture.

Both GM and Siemens believe that this potential joint venture will better serve customers by bringing new products to the marketplace faster with overall lower costs, while expanding business opportunities worldwide. The joint venture is expected to be established in early 1997. Although the parties are optimistic about the formation of this joint venture, no assurances can be made that the joint venture will be consummated.
via Brian P. Kreimendahl


MK Rail

1ST OF 24 LOCOMOTIVES FOR THE HOUSTON PORT TERMINAL
Jun6---On the local news (Boise, ID) this evening. MK Rail announced the completion of the 1st of 24 locomotives for the Houston Port Terminal Association. The 9601 is a 1500 HP Switcher painted in the Dallas Cowboy colors and has stars on the cab. No other details was given about the unit. They plan on having all 24 delivered by the end of the year. MK Rail officials stated that company have a backlog of work and the business is on the upswing. They plan on hiring some of the laid off workers back.
Bryan Loftin, via L. G. Ruback [ On Track Ltd ]


RAILTEX

RAILTEX TO PURCHASE I&O
Jun03---According to a recent report Railtex is going to buy the Indiana & Ohio short line. This will be the first purchase of an existing shortline for Railtex. They are buying only the freight operations. I&O operates some passenger service and this is not included in the deal. Railtex operates 3300 miles of freight service on various short-lines. Railtex is based in San Antonio, Texas.
Myron Malone


SOUTHERN PACIFIC

Octopus swallowed up by The Borg (see UP below)

CP POWER IN THE BAY AREA
Jun28---Last night, I was driving around Oakland, and I wandered on over to Adeline street. Pulling out onto the main was a long cut of intermodal cars, so naturally, I drove right on down to trackside to see what the power was.

The power was, SP 8489/ SP 8367/ Canadian Pacific 5755!! This is the first time that I've ever seen or heard of CP power in the Bay Area! The mechanical dept. personnel that came up to administer the air test said that this was the BACIT (Bay Area-City of Industry Trailers) train.

Also, there was one of the new 3-platform KCS Gunderson articulated all-purpose husky stacks in the train as well. KCS 9033.. They look nice in red with the traditional KCS herald on the side.
Harry K. Wong

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SP MOVIE TRAIN FOR SWIFT ROADRAILERS
Jun18---On June 18, the SP operated a special Movie Train for photographing a string of Swift Roadrailers. At 15:00, the train was spotted tied down on the main line of the Walker Line at Walker Siding (Randolph St. between Garfield and Eastern). Consist is 7246 and 7260 with 50 53' SWFZ Swift Roadrailers with WNCR bogies.
Ron Lehmer

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IS THIS THE 90'S OR THE 70'S?
Jun06---At Ozol this morning at 9 AM, SP 3883 (chopnose GP9) was moving around, coupled to 4820 and Rio Grande 3117. Next to the 3883, on the eastbound main, was Rio Grande 5326 on the point of an eastbound freight, with Gyralight working!

Wow. Blast from the past. The whole consist of the eastbound was 5326-2635- 8632-7648. The 3883 was cut off from the 4820 and RG 3117, and the latter two units were used for the local to Suisun and Davis. So the 3883 is probably still at Ozol, unless they are using it for the Pittsburg turn.

At Ozol last night at 8 PM was SP 3789 (hi-nose GP9), but it was gone this morning. AND, an eastbound Santa Fe light power set went through Franklin Canyon this morning at 8:45 with 206-5843-3061. The 3061 is, of course, a GP20.

Long live the old stuff!
Eric Blasko


UNION PACIFIC

Alias, THE BORG

Prepare to be assimilated
$54 BILLION MERGER APPROVED
July03---The three member Surface Transportation Board unanimously sanctioned the merger of the Union Pacific and Southern Pacific railroads. It set a series of conditions designed to minimize the anti-competitive aspects of the merger. Most of these conditions involved giving expanded access to UP-SP tracks and facilities to the BNSF.

The board stopped short of forcing divestiture of tracks to other competitors, like Conrail. Board commissioner Gus Owen said, "what we have achieved will allow the greatest good to be achieved with the minimum harm."
via staff and via Brian P. Kreimendahl

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July03---The Surface Transportation Board voted unanimously to approve the UP/SP merger, with conditions. A hotline caller reports there are 25 conditions attached. I don't have any details on the conditions yet. The final written decision is due to be issued August 12. I believe the merger can take place 30 days after that date.
Bill Farmer

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July02--- Assistant Attorney General Anne Bingaman, on Monday urged rejection of the deal, calling it "the most anti-competitive rail merger in our history." Decreased rail competition would lead to higher prices for shippers and eventually consumers, Bingaman said. "Approval of this merger would result in a monopoly in many markets and a rail duopoly throughout the West forever," she said.

The fate of the proposed merger, which would create the nation's largest railroad, lies in the hands of the three-member Surface Transportation Board (STB). The STB is currently holding hearings and will decide Wednesday whether to reject the merger or accept it in whole or with certain conditions attached. The proceedings were interrupted several times by appearances by political figures.

The deal would put 90 percent of all freight traffic west of the Mississippi in the hands of UP-SP and BNSF. UP-SP say they'd achieve $750 million in annual savings, some of which would result from the planned cut of 3,400 jobs.

"Rates will continue to go down and competition will be incredibly vigorous because both of these railroads (UP-SP and BNSF) will be much more competitive," Union Pacific lawyer Arvid Roach told the board. "Rail competition is vital, it is the heart of this transaction," he added. "We're increasing it, not decreasing it."
via Brian P. Kreimendahl

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July01--If the merger does goes through, 90 percent of all freight traffic west of the Mississippi River would be controlled by two railroads. The Justice, Transportation and Agriculture departments want to scuttle or attach conditions to the deal. They say it would cost consumers $800 million annually in higher prices while also harming farmers and U.S. exporters.

Among those appearing to testify at the hearings were Sen. Kit Bond, R-Mo., Assistant Attorney General for antitrust affairs Anne Bingaman, Utah Governor Mike Levitt and Texas Congressman Lloyd Doggett, D-Texas. Merger foes were insisting that UP put major parts of the united UP-SP system up for sale as a condition for letting the merger go through. Arvid Roach, UP attorney, insisted that all of the divestiture proposals tabled so far were completely unacceptable to UP.

The three-member STB panel chaired by Linda Morgan, a Democrat, appeared less interested in killing the deal than in focusing in on compromises that would permit the deal to go forward. Exchanges with Justice Department lawyers, who argued the deal should be scrapped entirely, became heated at several points in the hearing.

Discussion kept returning to Union Pacific's proposal to allow for a five-year transition period for combining the line that would be closely supervised and accompanied by annual hearings by the STB. Also mentioned were possible sanctions that would be imposed on UP if antitrust fears proved justified, including penalties and possible requirements that UP be forced to sell off lines where it attained monopoly power. Concern is focused on three key sets of routes: first, the Cotton Belt , routes into and out of Mexico and the routes between the Pacific Northwest and southern California along Interstate 5.

The issue raised was whether UP should be forced to sell off some of it's track in order to retain competition on the routes or whether UP's offer to permit Burlington Northern/Santa Fe to use the rails under a trackage rights agreement would be sufficient. The Justice, Agriculture and Transportation departments argued that a sale would be required in order to give competitors incentive to compete. Backers of the merger insisted that they had built enough safeguards into the agreement with BN/SF to ensure competition while permitting UP to keep possession of the track. Under UP's proposal, the STB would review competition in the region each year to make sure that competition was sufficient. In the case of Utah, where UP would have a virtual monopoly on all rail traffic, Gov. Levitt suggested that UP could give rebates to shippers when local shipping costs rose faster than comparable costs elsewhere in the country.
via Brian P. Kreimendahl

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MORE MERGER STUFF (OPINION)
On Mon, 3 Jun 1996 toconnor wrote:
=====================================================
Why Unions Backed Rail Merger
Documents detail agreements struck with Union Pacific
Kenneth Howe, Chronicle Staff Writer
=====================================================
[snip]
Neither the UTU nor the BLE returned phone calls for comment on the agreement.
However, at least one other union was quick to condemn the deal.

``We think this is a sellout,'' said Mac Fleming, president of the Brotherhood
of Maintenance of Way Employees, which represents 100,000 railroad construction
and maintenance workers nationwide.

He characterized the agreement as ``a joke,'' claiming that the promises Union
Pacific made are already guaranteed by current rail merger law. Moreover, he
added, the UTU and the BLE ``don't have a lot to lose'' by cutting a deal with
Union Pacific because most of their engineer and yard worker members will be
retained in a merger.

In other words, cut a deal with the unions you're going to have to cut a deal with anyway, and tough luck to the unions that you don't need quite so badly. What's interesting in this case is not that the UP struck a deal with the BLE and UTU (which is smart politics) but that the BLE and UTU have in essence sold out the clerks, shop, and M-of-W unions instead of looking for a good deal for all employees, and that the BLE and UTU aren't paying much attention to the AFL-CIO policy either. So much for union solidarity; so long as unions are willing to sell out other unions or new members the corporations the unions ostensibly detest will continue to win the battles.
Mark W. Hemphill

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THE RAILROAD'S PERSPECTIVE
For the railroad's perspective try:

http://www.uprr.com/uprr/notes/corpcomm/merger.htm

Steve Sloan

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THESE SUCKERS ARE HUGE
July01--UP 7044 !!/ CNW 8703 ! FF
That is.. a UP AC4400CW/6000CW Convertible with a CNW DASH9-44CW behind it. The CNW was belching flames out of the exhaust stack, and much smoke, as it wasn't very healthy, but the UP 7044 is the first recorded instance that I am aware of that a UP AC6000CW convertible has made it into the SF Bay Area. These suckers are HUGE!

The AC6000CW convertible looks like a DASH9 on steroids..

Thanks go to the two fans at Franciscan Hobbies who gave Arved and I the tip for this one!
Cheers, Harry Wong

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BOB DOLE TRAIN?
July01--I understand that Bob Dole is planing to take a train from Oakland to San Diego for the convention in August. Any information on what route or road? Hope the summer finds you well.
Kevin G. Roznowski

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OS HEARST SIDING
Jun23---After being alerted by the dispatcher at 11:00 that there were light engines awaiting pick up at Hearst, I hurried over and found GP40 677, GP15s 1599, 1591, 1590, 1575, SD40-2 3966, SD60M 6125 and C41-8 9481 idling on the siding. Soon along came CNW C44-9s 8711 and 8657 on an eastbound empty stack train to pick them up. All that power made for great shots from the bluff above Hearst. Glad I had the flexibility of my spiffy new 28-70 zoom lens! It was nice to be in the right place at the right time for a change.
Jon Porter


TAKING STOCK



The Rail Stock Report, Compiled by Jim Czarnecki, is now available at:
http://www.primenet.com/~jimc/



This document was last updated July 5, 1996.


Steve Sloan, Sloan Family Webmaster stevesln@aimnet.com
TRACK WARRANTS
P.O. Box 720301
San Jose, CA 95172
USA