Who Side Are They On?

There is a bill before congress which would use the funds of fuel sales tax, currently being placed on Class 1 rail carriers, to fund an Emergency Shortline Fund.  The fund would assist shortlines and entities in repairing track and other infrastructure.


When you reading the testimony of the of Edward R. Hamberger President and Chief Executive Officer Association of American Railroads", he makes clear that AAR is clearly only interested in Class 1 interest. Which I guess, is as it should be in his case, since that his who pays his check?   Here below is part of his testimony to the members of congress on July 25th..

"AAR's membership includes freight railroads that operate 75 percent of the line-haul mileage, pay 92.6 percent of the deficit reduction fuel taxes, and account for 93 percent of the freight revenue of all railroads in the United States; as well as passenger railroads that operate almost all of the nation's intercity passenger trains and provide commuter rail service."

"AAR opposes H.R. 4746 because it could undermine industry efforts to repeal the unfair 4.3 cent-per-gallon tax on railroad diesel fuel; it would create a new federal program funded by Class I tax revenues even though the tax's original purpose of reducing the federal deficit has been achieved; and it would establish a Railroad Trust Fund that Class I carriers neither want nor need.  "

In reading his testimony and listening to Class 1 representatives, their stance is pretty much the same "we eventually get all the shipments anyway.... what do we care if they come from trucks or other shortlines."

The AAR is aggressively fighting this tax, which would help fund the emergency shortline bill.

The Class 1 carriers, via AAR, point out that there is no need for assistance. Obviously they either are ignoring the problems arising due to their abandoning branch lines, or are not caring to look.
DepotNews 08/08

Also refer to Railroad Rehabilitation Improvement Finance Program