The Sidney herald., 1961-01-25
Railroad Plans To
Merger Opposition
Killed In House

hAHhkCW Ill HEUUSC
Helena = House Joint Memorial
No. 4, which would have express
ed the Montana legislatures oppos-
ition to announced plans of a mer-
ger of two major Montana rail-
roads and discontinuance of pass
enger service on a third, died
Friday on the floor of the House
when attempts to defeat a commit
tees do not pass report failed
following debate.
Rep Jerome Anderson, R-Yel-
lowstone, Republican Majority
Leader, led the debate to adopt
the committee motion and cited
the memorial as being too broad
in scope and having contradictory
detectives.
The memorial proponents ex-
pressed concern over the effects
the railroad economy plans would
have on Montana's economy and
attempted to imply that the COM
mittee had favored rail represent
atives in the hearings conducted
on the memorial.
Rep. Ray M. Loman, R-Lake,
Chairman of the Business and In
dustry Committee, in a statement
after the vote, stressed that the
committee had listened TO both
sides at length with all committee
members present at most hearings.
"The central issue before the
committee" Loman said, twas in
the best transportation service to
the state of Montana. However,
before any merger can take place,
the Interstate Commerce Commits
sion must give its approval and
this will not be done until after it
has conducted hearings in all the
states served by the railroads.
Therefore, the committee felt it
was not in position to express an
opinion, which is all a memorial
amounts to at this time"
Three subjects which concern
the committee and Montanans,
Loman said, in connection with
The proposed railroad changes are
taxes, service and employment.
Testimony offered by the rails
indicate that no tax loss will be
suffered because properties will
remain the same and there is a
good possibility that they would
increase because the economies
sought in operations by the pro-
posed merger would be reflected
in profits which are taxable.
In connection with service, the
rails would not discontinue any
existing service offered and could
not do so without ICC approval
Particular mention was made in
reference to the present fast, over
night non-feed cattle shipping SER
vice out of Billings to Midwest
markets which the industry pledg-
ed to continue. Mention was made
also that with the combined cal
pools the perennial boxcar short
age in the states grain growing
areas each fall could be helped.
Most important consideration ir
the issue is probably employment
Cali of us are aware of the fear:
that workers will lose jobs; how
ever, before taking any hasty
action it would be well to bear il
mind the job loss fro mthe pro
posed merger would be absorbed
by normal labor turnover. TIL,
rails estimate that there will b.
an 8 percent reduction in jobs
however, by federal law, the EN-
ployees are protected and will no
be laid off arbitrarily" Lomal
said.
Dan Dykstra. R-Lewis AMI
Clark. Vice Chairman of the Com
mittee. called the committee con
sideration of the memorial fai
and impartial and pointed out tina
in studying the economics OF tn
problem, neither the railroad o
the opponents statistics were &C
copied without question. Instea'
the committee compared these sta
tistics with an Independent stats
teal summary of railroad incom'
and earnings.
Dykstra expressed his sentiihei
that a short-term viewr
blindly opposing the Milwauxv
roads request could lead to dan
gerous consequences later on. II tn
railroad is forced to continue t
operate at a loss, it may becom
!; bankrupt and the result woul
be greater loss of jobs, losses i
taxes and a deterioration of ser
vice.