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This JOC story just to keep you up to date. In this case, a smooth
transition is significant and relevant to the CPR (StL&H/D&H) as significant
changes result in the East.

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CONRAIL BREAKUP
Day one of merger: on track to success


NS, CSX employees express both relief and apprehension


BY RIP WATSON
Journal of Commerce Staff

Norfolk Southern Corp. and CSX Corp. steamed through an apparently
trouble-free first day of service to former customers of Conrail Inc. with a
sigh of relief and a whiff of employee apprehension.

Those twin messages emerged from interviews with more than a dozen NS and
CSX executives and employees in Jacksonville, Fla., and Altoona, Pa., during
Tuesday's "Day One," when the two carriers divided up Conrail and formally
began operations over their own expanded systems that move virtually all
Eastern railroad traffic.

"I'm cautiously optimistic," said Randy Coho, a member of the Transportation
Communications Union that represents clerical workers in Altoona. "Everybody
is assuming that wait and see attitude."

Dennis Appleman, local chairman of the International Association of
Machinists in Altoona, said most of his union's members "are concerned about
their jobs. We have 460 machinists on June 1, 1999. How many will there be a
year from now?"

"Employment is always a concern," said 23-year Conrail veteran Jerry Conrad,
a boilermaker in Altoona.

"We're grateful we have a chance here. We are all waiting to see what
happens."

NS is the fourth employer for some Altoona workers, following Conrail, Penn
Central and Pennsylvania Railroad.

'Just another merger'

Conrad also said, "For a lot of people here, this isn't anything new. We're
just going through another merger."

It was another day at the office for CSX's director of train operations,
Carl Caldwell, a 41-year industry veteran of 10 rail mergers.

"We've had an excellent day," Caldwell said. "It's one of the best days
we've had in a long time."

"Our people have been so apprehensive," said Don Menefee, a general chairman
of the Brotherhood of Locomotive Engineers in Jacksonville.

He praised CSX President Pete Carpenter for helping smooth the transition.

"Many of these people are concerned for their jobs," said Federal Railroad
Administrator Jolene Molitoris, who visited Altoona and Jacksonville for a
first-hand look.

"They have been through several mergers," she said. "Their experience has
not always been good.

"It's incumbent on the unions, NS and FRA to assure that these people have
enough information in a timely way that the insecurity is taken away."

Prodded by Rep. Bud Shuster, R-Pa., NS promised to spend $67 million to
upgrade the Altoona facilities and move 178 jobs there.

"These commitments were only a down payment," Molitoris said. "Our
responsibility is assuring that those commitments are met."

Attracting business

Another commitment made by NS and CSX is to use their new assets to attract
new business.

"Railroads have to be strong for the 21st century," Molitoris said. "We care
a lot about market share at FRA. If the railroads can't gain market share,
things don't look too great."

Executives at both railroads tried to project a business-as-usual attitude.

"Everything seems to be running fine," said NS Chairman David Goode. "We
have a good beginning."

"We came out of this weekend in great style," said Michael Ward, CSX
executive vice president. "I've had a most wonderful day. Hopefully, this is
a harbinger of what will happen in the future."

The excitement showed through in others.

Ray Thigpen, CSX assistant vice president, was in Jacksonville, but he
really wanted to be on the first train running east from Chicago -- an
intermodal service loaded with parcel traffic.

Menefee injected some caution by discussing operations in Chicago, where the
railroad and the union battled over the procedures for qualifying current
CSX workers to run trains over former Conrail lines.

Chicago also was a focal point, because UTU General Chairman Carl Cochran
said CSX provided crews for several Norfolk Southern trains there because of
a temporary NS crew shortage.

'Great safety record'

Safety at NS, which has won the industry's top safety award for 10
consecutive years, also was a prominent topic.

Asked about differences between his old and new employers, Coho said
"Norfolk is more safety-conscious."

"NS has a great safety record," Appleman said. "They don't vary. If it's a
rule, it's a rule."

A recent NS bulletin to Conrail engineers underlined that view.

"An engineer will be subject to discipline when speeding results in an
accident and/or whenever the train is operated at an excessive speed," the
notice said.

"To repeat, engineers guilty of excessive speed will be subject to
dismissal," the bulletin said in closing.

Molitoris said, "That letter was in a very traditional railroad mode. You
can get the facts out about safety in a way that is not harsh. I believe NS
will revise it (the way safety messages are sent)."I
Rip Watson can be reached at
(410) 494-9959 or
rwatson@...