WASHINGTON, D.C. – Freight rail customers from across the country, concerned with how the abusive pricing power being exerted by the railroad monopoly is hurting the U.S. economy and costing American jobs, stepped up pressure on Congress today to pass rail reform legislation.
“The current lack of protections against monopoly pricing is hurting our economy,” said Amy Fredregill, Chair of Gopher Consumers United for Rail Equity (CURE). “Congress can provide debt-free economic stimulus and restore fairness to railroad pricing by removing the monopoly protections that railroads have been exploiting.”
Captive shippers and other rail customers met with leaders in Congress for Rail Customer Day to urge enactment of the Surface Transportation Board Reauthorization Act of 2009 (S.2889) and the Railroad Antitrust Enforcement Act of 2009 (S.146/H.R. 233). Passage of legislation this year would reinstitute some of the rail restrictions lifted in the 1980s when train companies were in financial jeopardy.
Members of Gopher CURE met with the Minnesota Congressional Delegation to ask for their assistance in addressing the concerns of captive rail customers that have led to higher consumer prices. Minnesota has many Congressional champions of rail customers and consumers, including Congressman Oberstar, Senator Klobuchar and Congressman Walz, who are sponsors of important federal legislation.
Captive shippers and customers who use rail to move agriculture, chemical and forest products underscored the need for rail reform by highlighting the following:
· The railroad monopoly is hurting consumers, forcing them to pay artificially high prices for their utilities, groceries and other products.
· A new U.S. Department of Agriculture report, “USDA Study of Rural Transportation Issues,” includes dramatic findings about the cost to Americans from the lack of competition in the freight rail industry.
· As an example, a captive shipper recently filed a complaint with the Surface Transportation Board saying a rail company with monopoly pricing powers has been charging rates that are between 400 percent and 1100 percent of variable costs.
In addition to numbers meetings with Members of Congress, Customer Rail Day included a breakfast rally with Senators Amy Klobuchar (D-MN), Herb Kohl (D-WI), Jay Rockefeller (D-WV), and Byron Dorgan (D-ND) and a reception with Representatives James Oberstar (D-MN), Tim Walz (D-MN), John Conyers (D-MI), and Tammy Baldwin (D-WI),
Gopher CURE is the state chapter of Consumers United for Rail Equity (CURE), a national rail customer coalition comprised of businesses in many industries. For more information about Gopher CURE, please visit www.railcure.org
