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Secretary Vilsack Letter to STB

Secretary Vilsack Letter to STB

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Published by dhmontgomery
A letter written by U.S. Agriculture Secretary Tom Vilsack to the federal Surface Transportation Board, supporting South Dakota's position in a dispute over whether Canadian Pacific Railway kept its promises to invest in track it purchased from the DM&E railroad.
A letter written by U.S. Agriculture Secretary Tom Vilsack to the federal Surface Transportation Board, supporting South Dakota's position in a dispute over whether Canadian Pacific Railway kept its promises to invest in track it purchased from the DM&E railroad.

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Published by: dhmontgomery on Sep 24, 2013
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09/29/2013

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USDA
-
nhed
StatesDepartment
of
Agriculture
SEP
2
0
2013
TheHonorable Daniel
R.
Elliott IIIChairmanSurfaceTransportation Board395 EStreet,SW.Washington,D.C.20423
Offi
ceof
the SecretaryWashington,D.C.20250
RE: Finance DocketNo. 35081 Sub.
No.2,
CanadianPacific RailwayCompany,
et
al.-
Control-Dakota,Minnesota &Eastern Railroad Corporation.
et
al.
Dear ChairmanElliott:This letter
1
isinsupport
of
the petition
of
the State
of
SouthDakota,actingby andthrough its Department
of
Transportation
to
enforce Canadian PacificRailwayCompany's (CP)investment representations
to
theSurfaceTransportationBoard (STB). OnMarch 4,2008,theU.S.Department
of
Agriculture (USDA) filed comments withSTB in support
of
the merger
ofCP
andDakota,Minnesota &EasternRailroad Corporation (DM&E), whichhad interchangeswith all sevenmajor railroads. USDA providedits support
of
the mergerontheconditionthatCP kept a
ll
currentconnectionstothese otherrailroadsopen at economically competitive andnon discriminatory rates.USDA also encouraged CP
to
makesufficientinvestment inthe formerDM&Eline
to
maintainorimproveits condition. SouthDakotais served by only two major railroads, theBNSF RailwayCompany and the formerDM&Eline, whichis nowoperated by CP.The formerDM&Elineistheonly east-westrail line thatcrossesthe middleportion
of
theState.
It
has improvedshippers'competitive access tomarkets inChicago,thePacificNorthwest,Texas, andtheeastern
Un
itedStateswithitsconnectionstoallmajor railroads. The loss
of
this
li
ne, ormajorportions
of
it, could eliminaterailservice
to
amajor portion
of
theState. Even whereservice would remain, agricultural shippers would onlyhaveaccess
to
asinglerailroad, which could increaserailratesforagricultural shippers and receivers
of
corn, wheat,soybeans,ethanol, distillers, dried grains,flour,fertilizer,andseeds. This,in
turn,
couldreducefarmincome andincreasetruck traffic onrural roadsand bridges.
1
The AgriculturalAdjustmentAct
of
1938 (7 U.S.C.§129
1)
and the AgriculturalMarketing Act
of
1946(7 U.S.C.16210))provide USDA authoritytorepresent the interests
ofthe
agriculturalshippingindustry to the STB(andother Federal transportation regulatory bodies) with respect to rates,charges,tariffs, and practices relating to the transportation
of
farm products.
An
Equal
Opportuni
ty
E~
r

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