June 25, 2001
Amtrak senior management has gone too far; there is nothing apologists can say for this behavior.
Members of the United States Senate, John McCain of Arizona and Phil Gramm of Texas, have questioned Amtrak’s handling of its finances and the necessity of mortgaging parts of Penn Station for $300 million. Since each of these gentlemen hold seats on the Senate Commerce, Science and Transportation committee, the authorizing committee for Amtrak in the Senate, they have requested copies of the mortgage.
Amtrak, citing that the mortgage was a “private matter,” has refused.
How does any civil person refuse the request of two United States Senators? These two senators are part of a committee that says whether or not Amtrak lives or dies, and hold the keys to Amtrak’s future. It does not matter what opinion these two gentlemen have of Amtrak. They are United States Senators. Their office, like the presidency, demands a certain element of respect.
Does Amtrak senior management arrogantly think that because the nominal control of the Senate changed from Republican to Democratic that they can blow off two members of the Senate? Do they not have the basic understanding that in the United States Senate, Republicans, Democrats, and Independents are all members of the same club, and all hold near and dear basic rules of Senatorial etiquette and how Senators are to be treated by other members of government who are dependent on government funding and approval for the future?
This foolish arrogance has got to stop immediately.
Equally disturbing was the revelation in the letter that the mortgage, to cover three months of operating costs will require 17 YEARS to repay, at an amount of interest equal to the principal of the loan. That’s $300 million of principal, and an ADDITIONAL $300 million in interest payments, for a total repayment of $600 million. How many potholes on the NEC would this fix? How much new rolling stock would this buy? How much terminal track could be upgraded to speed up running times all across the country?
This is beyond the shadow of pale.
The two Senators also note the ongoing dishonesty of Amtrak senior management about the company’s shaky financial condition.
All of us are equally tired of this charade.
We’re tired of being told lies about record revenues and record ridership, but not told about record expenses, which are much higher than revenues.
We’re tired of wondering whether or not a national passenger railroad system will still be alive in 18 months, or, for that matter, when a change in senior management finally occurs, whether or not there will be anything left to save.
We’re tired of wondering about mail and express, whether this “miracle cure” for passenger trains is actually working in the other direction.
We’re tired of documented stories from vendors, some holding Amtrak accounts receivables that are over six months old. How many small businesses, thinking they were dealing with the United States Government, instead found themselves the victims of poor Amtrak financial management, and are financing this billion dollar corporation through nonpayment of receivables?
We’re tired of amateur railroading, such as not being able to handle the annual PREDICTABLE snowfall in December in Chicago, and annulling trains because somebody forgot to plug in the heaters.
We’re tired of the civil war between management and labor. When senior management finally does change, how many years is it going to take for labor to believe ANYTHING the new management has to say?
We’re tired of far too many senior staff management positions in various headquarters, yet not enough front line management positions to staff terminal and station stops when trains pass through.
We’re tired of being told that to cut expenses, mandatory safety and customer service staffing like coach attendants have to be cut to levels below those found in third world countries.
And, we’re tired of so much else.
Now is the time for everyone to come to action. Now is the time for all state and national organizations to demand change instead of apologizing for current senior management’s arrogance and foolishness.
Now is the time for new senior management at Amtrak. Not tomorrow, next week, or next month. NOW is the time.
We’re seeing Amtrak struggle through a summer season that should at least be keeping even with previous years, not losing ground yards at a time.
If something doesn’t happen soon, there will be no Amtrak to save.
Bruce Richardson
President, URPA
Jacksonville, Florida