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Dec 31, 2001: 2001 News ReleasesHigh Speed Rail Bill Pushed; Amtrak Market Share
Grows - December 21, 2001
HIGH SPEED RAIL BILL PUSHED; AMTRAK MARKET SHARE GROWS December 21, 2001 Four organizations wrote to key senators earlier this week urging inclusion of the High Speed Rail Investment Act in any economic stimulus legislation sent to the White House. The letter was signed by:
Although Congress adjourned without passing a stimulus bill, prospects for high speed rail legislation next year benefit from a developing consensus on the form of such legislation. One reflection of that: The version included in the stimulus bill passed by the Senate Finance Committee closely tracks with provisions in H.R.2329 (introduced by Reps. Oberstar, D-MN, and Houghton, R-NY). Meanwhile, November maintained the pattern of increased market share for Amtrak. Compared with one year ago, airline ridership and average fares fell sharply, while Amtrak nationwide ridership was flat and passenger revenues were up. The economic context includes a record 5.7% unemployment rate, and a 15-17% drop in U.S. hotel room revenues vs. a year ago. On domestic routes, "enplanements" dropped 19.5%. The average fare (normalized for a 1,000 mile trip) fell 16.3% to $123.68 (figures in this sentence only exclude Southwest Airlines). (Source: Air Transport Association website). Systemwide, Amtrak ridership dropped 0.5%, while ticket revenues increased 14%. Total Northeast Corridor ridership was "essentially flat," but the higher fare Acela Express and Metroliner products had ridership and revenue increases of 40% and 66%, respectively. Nationwide, sleeping-car ridership and revenues increased 1% and 11%, respectively, with about 60% of all departures sold out in either or both of the standard or deluxe rooms. Text of the joint letter, which was sent to Senate Majority Leader Thomas A. Daschle (D-SD), with copies to Max Baucus (D-MT) and Charles E. Grassley (R-IA) [Finance Committee chairman and ranking member, respectively] and to John D. Rockefeller IV (D-WV): "The undersigned rail industry and passenger associations are writing to express our strong support for the provisions for tax credit bonds for high-speed rail development contained in the economic stimulus bill passed by the Senate Finance Committee. We urge Senate conferees to advocate inclusion of these provisions in the final economic stimulus bill that is agreed to by Senate and House conferees. "Bonds for investments in high-speed rail would have the type of immediate economic stimulus the country needs and that are the intent of the legislation. States and regions around the country have identified rail projects on designated high-speed rail corridors that are 'ready to go.' States are willing to put state matching dollars toward these high-speed rail projects but states need a federal partner to move forward. Each billion dollars invested in infrastructure projects such as rail generates approximately 42,000 jobs. Moreover, every dollar spent on infrastructure has a multiplier effect of 3-5 times, amplifying the economic benefit of the investments. "The terrorist attacks of September 11 made clear to citizens and policy makers the wisdom of a transportation system that provides travelers with choices, including the choice of intercity passenger trains. The attacks underscored the vulnerability of an American economy so dependent on a single mode of transportation. Three months after September 11, ridership on our nation's intercity passenger rail system remains strong. In the Northeast, where the new Acela Express high-speed trains and Metroliner services operate between Washington D.C., New York and Boston, ridership is up 40% over the same time last year. Citizens in other regions of the country want, deserve and would benefit from development of high-speed rail. "Now, more than ever, it makes sense to invest in high-speed rail service in corridors around the country as an efficient, relaxing and safe complement to highway and airline travel. We urge you and Senate conferees on the economic stimulus bill to urge inclusion of the tax credit bonds for high-speed rail development in the final economic stimulus bill agreed to by conferees. "Thank you for your leadership and your attention to our concerns."
NARP HAILS DOWNEASTER INAUGURAL December 14, 2001 Ross B. Capon, Executive Director of the National Association of Railroad Passengers, delivered the following remarks this morning at North Station: "Today we celebrate an important step forward in building the balanced transportation system that Americans long have been saying they want. And we thank Gov. King, Commissioner Melrose, Michael Murray, Wayne Davis and the many other people whose work helped make today possible. We are grateful for Wayne's determination and stubbornness! "The restoration of Boston-Portland passenger train service after almost 37 years -- and Boston-Dover service after more than 34 years -- is a great victory not just because of what it immediately provides, but as the next step towards closing the infamous gap between North and South Stations in Boston. "This new service will add to pressure for creation of the Rail Link, and for connecting the Northeast Corridor from Portland to Miami into a seamless, modern transportation network. "We at NARP are proud to join the legions of railroad advocates in this region in celebrating the arrival of the Downeaster, both as advocates of better rail service in general, and as parties to some of the legal efforts that were necessary to make the Downeaster possible. Today's success is also a testament to the to the increasing willingness of New England states to work together in common purpose. "To Governors Swift, Shaheen and King, we pledge our best effort in helping you build constituency for the Downeaster ... In combination with Amtrak's steadily improving Boston-New York service ... you have a model worth exporting to other regions of the nation. Hopefully, Congress will get the message and soon pass legislation making the federal government a reliable partner with states for getting intercity passenger rail projects done. "Thank you again to everyone who helped make today possible."
STATEMENT BY NARP ON THE ARC'S FINDING November 9, 2001 The Amtrak Reform Council met in Washington today and approved a resolution, on a 6-5 vote, to report formally to Congress a finding that the ARC believes Amtrak will continue to require operating grants after December 2, 2002 -- in other words, miss the 1997 legal requirement of operational self-sufficiency. Significantly, the resolution was opposed by DOT Secretary Mineta's representative (Mark Yachmetz of the Federal Railroad Administration) and by the Council's Republican chairman, Gilbert Carmichael (who served former President Bush as Federal Railroad Administrator). Also, the leading proponent of the resolution, Paul M. Weyrich, a long-time member of this Association, has made clear that he supports a national rail passenger system. Weyrich emphasized that, in spite of today's vote, "no trains are going to stop." That last quote is important: the trains will keep running. [A similar point needs to be made with respect to the lawsuit filed yesterday against Amtrak by Bombardier -- the Acela Express high-speed train sets will continue to operate, and Bombarider will continue to deliver the five remaining sets in the 20-set order.] With regard to the Council's action, NARP is concerned, however, that at a time of national crisis -- one directly related to intercity passenger transportation -- Amtrak, whose resources already are stretched to the limit, now must find time to draft a plan within 90 days for its own liquidation. Additional staff time doubtless will be consumed dealing with potentially negative consequences of that task on the its relationships with its lenders, and perhaps even with the willingness of customers to make long-term travel plans with Amtrak. NARP believes that the ground under the U.S. transportation establishment has shifted fundamentally -- and favorably towards rail -- as a result of September 11.
The fundamental problem facing passenger rail is inadequate public funding in general, and -- in particular -- the lack of a federal program for partnering with states on improving tracks which would in turn improve the economic performance of trains (including long-distance trains) running on the various federally designated high-speed corridors. We do not see an Amtrak reorganization as likely to solve that problem. Enactment of the High Speed Rail Investment Act and adquate annual appropriations for Amtrak are critical if the U.S. is to get the balanced transportation system we need to face the challenges of the new century.
RAIL PASSENGERS: TRAGEDY UNDERLINES NEED FOR NATIONWIDE RAIL PASSENGER NETWORK September 25, 2001 In the wake of the terrible tragedy of September 11, it is important -- in the words of Transportation Secretary Norman Y. Mineta -- that "we do not allow the enemy to win this war by restricting our freedom of mobility." The U.S. desperately needs a more balanced transportation system in which rail plays a much bigger role. Amtrak took on unusual importance right after the tragedy. During September 12-18, ridership was up nationwide and the increase on the long-distance trains was 35%. However, we believe that intercity rail must play a bigger role over the long term -- particularly for discretionary trips of any length, and for shorter-length business trips. [The Washington Post September 24 editorial, "Keep the Trains Running," included an endorsement of the long-distance trains. Today's New York Times editorial is "Trains Need Help, Too."] It has become more apparent than ever that our transportation system and economy would be far stronger and more resilient if we had a world class passenger rail system. As the Milwaukee Journal Sentinel editorialized September 21, "The horrible events of September 11 should make clear to everyone, especially members of Congress, that the solution to national transportation problems isn't simply safer planes, but better trains." It is critical that the High Speed Rail Investment Act (S.250, H.R.2329) be enacted this year. Enactment would let states begin to invest in corridors DOT already has identified. Finally, we support Amtrak's $3 billion short-term request to meet safety, security and capacity needs, like repairing out-of-service equipment so nationwide capacity can be enhanced quickly, and speeding up the much-criticized timetable for completing fire and life safety work on the New York tunnels. NARP Executive Director Ross B. Capon observed, "This important emergency package is no substitute for a long term commitment to a nationwide system. We note that Amtrak has clarified that -- just as most of the repaired existing cars will run outside the Northeast -- the ten new train sets in this package may also serve markets outside the Northeast." People want and need meaningful travel choices -- including modern train service. On the last day Congress was in session in 2000, Senators Lott and Daschle promised action this year on the High Speed Rail Investment Act. To this end, NARP strongly urges the Congress and President Bush to act now. The issue has become too important to become the subject of another call to "wait until next year."
NARP, STATES TESTIFY AT HOUSE PASSENGER RAIL HEARING July 25, 2001 "Given halfway decent service, people are riding in impressive numbers. With still better service, they will ride in droves." This was the message that Ross B. Capon, Executive Director of the National Association of Railroad Passengers, gave today in testimony before the Subcommittee on Railroads of the House Transportation and Infrastructure Committee. The hearing, chaired by Jack Quinn (R-NY), was reviewing the status of Amtrak and High Speed Rail. His written testimony noted substantial ridership growth in California, New York, North Carolina and the Pacific Northwest. He expressed concern about fares that are pricing family and leisure travel off some corridors and strong support for the long-distance train network. He supported Amtrak President George Warrington's characterization of that network as "skeletal," noting that a number of important routes such as Chicago-Atlanta-Florida do not even exist. Responding to a question, he expressed concern about the impact of the express initiative on schedules and on-time performance and confidence that Lee Sargrad, Amtrak's new President--Mail & Express, will be able to improve the bottom-line for express. Capon testified on a panel that also included David King of North Carolina DOT, representing States for Passenger Rail. King emphasized the importance of enacting the High Speed Rail Investment Act (HSRIA) soon because "the states are ready to go" in making rail passenger investments when the federal government is ready to partner. Capon urged that the HSRIA not be held hostage to the possibility of major changes in next year's Amtrak reauthorization, noting that if such changes did occur, necessary adjustments in the HSRIA could be made then. Also on the same panel, Sam A. Williams, president of the Metropolitan Atlanta Chamber of Commerce, testified on behalf of the Southeastern Economic Alliance, which includes 13 cities that support the HSRIA because "business leadership in the Southeast emphatically believes that congestion on our roads and at our airports limits our ability to perform as a cohesive economic region." Reflecting strong interest in the subject by committee members, the first hour of the hearing was devoted to opening comments by a large number of members. Chairman Quinn and Ranking Member Bob Clement (D-TN) concluded the hearing by noting that it had been one of the most informative they had seen.
NARP ON GAO REPORT July 17, 2001 The National Association of Railroad Passengers issued the following statement today: The General Accounting Office today released a report on S.250, the Senate version of the High Speed Rail Investment Act. (The House version, H.R. 2329, was introduced June 27.) This bill would provide states with a federal match for their intercity passenger rail investments, and requires a state contribution of at least 20%. The absence of a federal match is a major shortcoming in current transportation policy. The bill would let Amtrak sell $12 billion in bonds over 10 years; bondholders would get federal tax credits. The GAO report, requested by seven long-time Amtrak critics, notes that direct appropriations would be somewhat cheaper than the approach in S.250. The report, however, fails to explain that the bond bill exists because there is no politically feasible alternative. The highway and aviation trust funds have been "firewalled," that is, made unavailable for passenger rail even in situations where passenger rail would help solve congestion highway and aviation congestion problems. Indeed, one reason those problems are so serious is the federal government's failure to develop passenger rail. The firewalls, combined with caps on total transportation spending, mean that the practical choice today is the bond bill or inaction. The GAO report also reports an Amtrak "preliminary estimate" which "puts the capital costs for fully developed high-speed rail corridors and its Northeast Corridor at between $50 billion to $70 billion over 20 years." The GAO fails to note two important points: first, virtually every stage of a rail investment program would have benefits even if no further steps were taken -- this is not an "all or nothing" deal; second, $60 billion over 20 years sounds like a lot of money but is less than twice what the federal government alone expects to spend on highways this year ($31.4 billion). The single-year federal pricetag for aviation spending -- $12.0 billion -- is also impressive; fully 20% of the suggested 20-year total for passenger rail. GAO's use of multi-decade spending estimates to make proposed rail amounts seem outrageously impractical should not blind policymakers to the benefits of meaningfully developing our passenger rail system-benefits with regard to quality-of-life, safety, service reliability, the environment, energy efficiency and-in many markets-speed of travel.
CAPITAL COMMITMENT TO RAIL URGED June 22, 2001 The National Association of Railroad Passengers issued the following statement today: Release yesterday of the latest report on Amtrak by the DOT Inspector General reinforces the message that serious capital investment is needed if America is to have a passenger rail network worthy of the increased usage today's network enjoys. (Amtrak has proposed investing $1.5 billion a year.) FY 2000 was the fourth straight year in which Amtrak ridership rose, and is up 6.4% in the first seven months of FY 2001 (October-April). Impatience with highway and air congestion is a major factor which will only become more significant in the future. As for oft-discussed "what ifs" surrounding a possible failure of Amtrak to meet the statutory operational self-sufficiency target, Amtrak management maintains that Amtrak will meet the target. Moreover, a failure to meet the target should not -- as current law requires -- force Amtrak into drafting a "bankruptcy plan" (or the Amtrak Reform Council a "restructuring plan"). While Congress could ignore both plans, mere existence of efforts to draft such plans would chill Amtrak's relationship with its various lenders and efforts to expand the business partnerships that are an important part of Amtrak's ongoing health. Such partnerships include those that produce new express freight business which helps improve the economics of the long-distance trains; that bring new companies to participate in Amtrak's Guest Rewards (frequent traveler) plan; and which result in real estate development projects beneficial both to Amtrak and the affected cities. Indeed, Amtrak Reform Council Vice Chairman Paul M. Weyrich for over a year has urged postponement of the self-sufficiency target date to one year after Amtrak gets all 20 of the ordered high-speed train sets, since the delay in receipt of those train sets is a major factor in the presumed difficulty of Amtrak's meeting its target. Separately, NARP questions the appropriateness of the operational self-sufficiency target in the first place. The federal government has every right to expect Amtrak work constantly to improve its efficiency, but it is not clear that operational self-sufficiency is possible even with an efficient operation, nor is it achieved in many countries where rail plays an important role. Finally, in response to discussions about routes losing over $100 dollars per passenger:
BUSINESS, LABOR AND LOCAL LEADERS URGE PASSAGE OF PASSENGER RAIL INVESTMENT BILL June 7, 2001 Jointly issued by:
About 100 leaders from rail-related industries, as well as from labor unions, passenger rail groups and state and local government associations, are meeting with Senator Joseph Biden (D-DE) and Representatives Jack Quinn (R-NY) and Bob Clement (D-TN) before fanning out to meet with other congressional leaders and representatives of their home districts. All of the companies and groups represented in today's effort believe a revitalized passenger rail system can and should play a major role in meeting America's transportation needs. Despite Broad Support and Many Benefits, Federal Commitment Lacking Supporters say greater investment in passenger rail systems would create new jobs and business opportunities, especially in the many communities that have under-developed rail resources. Travelers would get more options and better service, including faster trip times and better amenities. Infrastructure upgrades would improve the speed and reliability of all trains, including freight and commuter trains, that use the upgraded tracks. Rail expansion plans are not just pipe dreams; they are coming alive across the country. Thirty-eight states are working with Amtrak to develop high-speed rail projects. The U.S. Department of Transportation has designated 11 high-speed rail corridors around the country that are eligible for federal support. To cite two examples of strong ridership growth realized before significant speed improvements:
Groups Outline Their Legislative Program In their meetings with Senators and Representatives, the groups are urging Congress to enact the High-Speed Rail Investment Act and provide the President's full request for Amtrak appropriations in FY '02. The High-Speed Rail Investment Act, sponsored by Senators Joseph Biden (D-DE) and Kay Bailey Hutchison (R-TX), and soon to be introduced in the House of Representatives by Representatives James Oberstar (D-MN) and Amory Houghton (R- NY) would authorize intercity rail authorities to issue $12 billion in bonds over ten years to invest in high-speed rail projects. The funds would be invested in upgrading existing rail infrastructure, building new lines, purchasing new equipment, and improving or eliminating grade crossings. States choosing to participate in the program would be required to match at least 20% of a project's costs -- although many states will continue to match at a higher rate. The state matching funds would be set aside in a privately managed account to guarantee repayment of the bond principal -- an innovative, low-cost financing mechanism supported by the bond community. The High Speed Rail Investment Act (S. 250) currently has 57 cosponsors. A similar bill last year was endorsed by the National Governors Association; the U.S. Conference of Mayors; the National Conference of State Legislatures; more than 40 business, consumer, labor and environmental groups; and more than 30 newspapers across the country. The groups participating today also support President Bush's request of $521 million for Amtrak appropriations in FY '02 with 100% of the funds provided at the beginning of the fiscal year. High-Speed Rail Day was organized by the American Passenger Rail Coalition; the High-Speed Ground Transportation Association; the National Association of Railroad Passengers; the Rail Labor Division of the Transportation Trades Department, AFL-CIO; and the Railway Progress Institute. Participating companies and organizations include: Brotherhood of Locomotive Engineers
"SHRINKING AMTRAK" WRONG ANSWER June 6, 2001 The National Association of Railroad Passengers (NARP) reacted with surprise today at recent assertions by Transportation Secretary Norman Y. Mineta that Amtrak should ameliorate its financial problems with service cuts -- by looking "at selected routes rather than blanket the country with rail service that is not...really viable" (Washington Post, June 6):
NARP is a non-profit, non-partisan membership organization that works for more and better passenger train service in the U.S.
RAIL PASSENGER IMPROVEMENTS URGED AS PART OF ENERGY PLAN May 18, 2001 Below is the text of a letter sent today to Secretary of Transportation Norman Y. Mineta from NARP Executive Director Ross B. Capon: Improved intercity passenger rail service should be part of any comprehensive energy plan. There is already ample evidence that even modest service improvements produce impressive ridership growth. As well, Oak Ridge National Laboratory statistics (1998 BTUs per passenger-mile) indicate that Amtrak is 1.6 times more energy efficient than domestic airlines, and 4.5 times better than the rapidly growing general aviation sector. Moreover, as explained below, these system average numbers understate rail's advantage. (1) Short-distance flights-a substantial portion of all U.S. domestic
flights-are less energy efficient than aviation as a whole, while short-distance
rail corridor services are more energy efficient than Amtrak as a whole.
On the Eugene, Oregon-Vancouver, B.C. "Cascadia" Corridor, ridership has grown from 226,000 in 1993 to about 600,000 this year. Major factors: modest frequency increases, a modest speed-up in Portland-Seattle running times (excluding long-distance trains, average speed rose from 47.5 to 53.1 mph), and a dramatic improvement in the traveling environment as modern, stylish Talgo trains replaced older "Amfleet" cars. California ridership likewise has developed strongly with frequent trains and good bus connections. We urge the Administration to endorse the High Speed Rail Investment Act, in part because of its prospective contributions to the energy situation (as well as to issues of all-weather reliability, congestion relief, and traveler convenience). Better train service is not about sacrifice. It conserves energy while giving travelers more choices.
BURCH SAFETY AWARD GOES TO AMTRAK'S DAMIAN GARDEN April 26, 2001 The Dr. Gary Burch Memorial Safety Award for 2000 will be presented
tonight to Damian Garden, of Yalesville, Conn., an Amtrak maintenance-of-way
supervisor. The annual Award goes to the individual
Currently, Garden oversees inspections of all track and switches on the New Haven-Springfield and New Haven-Boston lines. He directly contributed to many of the infrastructure improvements that support Amtrak's new high-speed rail service. Garden has worked in the track department for over 25 years. He has been described as the consummate "go-to" guy because of his availability and willingness to help various Departments -- Customer Services, Communications and Signals, and Buildings and Bridges--with operational-related problems.
PASSENGERS HONOR LEIF ERIK LANGE April 26, 2001 The National Association of Railroad Passengers today will present its first annual John R. Martin Passenger Rail Advocacy Award to Leif Erik Lange of Elk Grove, Cal. The award, established in honor of the Association's late president, will be given at the Association's annual Washington reception, at the Columbus Club in Union Station, this evening at about 6:30 pm. Lange is a former board member and vice president of the association. The award recognizes his "over 20 years of dedicated commitment to, and work for, the improvement and expansion of rail passenger service." He also has been a board member of the Train Riders' Association of California, a rail planner at the California Department of Transportation, and a staff member of the California Assembly Transportation Committee. The plaque continues, "Mr. Lange's professional and personal efforts were critical to the significant growth in California passenger train service-both intercity and commuter rail-that occurred over the past two decades. His work helped lay the foundation for further growth in the years to come." Lange's involvement included writing rail-friendly bills that were passed by the Legislature, and helping the effort to pass ballot issues that provided billions for passenger rail in California.
PASSENGERS HONOR LATE PRESIDENT April 26, 2001 The National Association of Railroad Passengers today will remember its late president, John R. (Jack) Martin, by presenting the George Falcon Golden Spike Award in his honor to his wife, Faye Mounce Martin, of Atlanta, Ga. The award will be presented at the Association's annual Washington reception, at the Columbus Club in Union Station, on Thursday, April 26, at about 6:30 pm. Martin was president of the organization from 1979 until his death on September 1, 2000. NARP President Alan M. Yorker who will present the award, has written of Martin, "He was a uniquely talented man who gave his all to the cause of supporting passenger rail in the United States. He earned the respect of virtually everyone with whom he came in contact. As a longtime friend and mentor to me, he will be sorely missed, but we should all know that his blessing is with us to continue on the path he so brilliantly lighted. Passenger trains in our country have a bright future in no small measure due to Jack Martin." The plaque to be awarded today additionally recognizes Martin's "vision and work in Georgia helped lay the foundation for a rail passenger network that will prove to be an important legacy for future Georgians."
NARP STATEMENT ON RELEASE OF ARC REPORT March 20, 2001 Note -- This release was written for distribution at the March 20 meeting at which the ARC report was released for the first time, based upon concepts which appeared in a fall 2000 ARC working paper (concepts which NARP understood to also appear in the final paper). We appreciate the fact that most Amtrak Reform Council members want intercity rail passenger to expand and prosper. We believe they share our view that the U.S. economy, environment and quality of life would not be well served by continuation of a mostly "fly-drive" transportation investment program. Thus, we do not want to reject out of hand a Council report that we have not read. However, based on recent news accounts, we offer the following caution with respect to creation of a new infrastructure agency. (See also our October 6, 2000, comments to the Council.) The current issue of The Economist (U.K.), [cover date March 17-23, page 55] after reporting that Britain's railways "are still a mess," states flatly: "At the center of the [British] railway industry's problems is the division of track from trains which sets up an adversarial relationship between Railtrack [private track-owning corporation] and the train operating companies…The chairman of the Association of Train Operating Companies, Richard Brown, believes that track and trains should be reunited. In a study published this week by Transport 2000, called 'The Railways: Where do we go from here?', he points out that National Express, the train operator he heads, already runs three vertically integrated franchises in Australia…Sir Alastair [Morton, chairman of the Strategic Rail Authority] acknowledged that there could be a pilot trial of vertical integration in Scotland." Similarly, last week's magazine [March 10-16] at page 8 has a letter from Edward Burkhardt, "the first chairman-CEO of Britain's largest rail-freight carrier after privatization." Commenting on the current debate about whether or how to reorganize the London Underground, he asks whether "separation of railway infrastructure and operations can ever be successful. In my opinion it cannot. I served as the first chairman-CEO of Britain's largest rail-freight carrier after privatization." Burkhardt calls Railtrack "a major obstacle" to improving customer service, reducing costs, and managing a large rolling-stock program. "More recently, safety, and economic and investment issues created by vertical separation have caused huge problems on Britain's rail network and there is increasing disenchantment with the industry structure in place." To the extent that an Amtrak restructuring is seen as a way to reduce public investment needs, it should be noted that British public investment in rail is planned to increase since privatization. The British government's Strategic Rail Authority has announced a program to invest $88 billion dollars (£60 billion) into the UK railway system, over ten years, in order to "...lay the foundation for a 50% increase in passenger numbers and 80% more freight on the country's rail network..." We doubt that creation of a new infrastructure authority, which apparently would have an even greater Northeast bias than Amtrak does today, would make it easier to get Congress to vote the funds that are widely acknowledged to be needed if passenger rail is to flourish across the U.S. |
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