Hotline #66 - December 23, 1998

The Amtrak Board announced its appointment of George Warrington as Amtrak's President and CEO, at a news conference in Washington Union Station on December 21. Warrington joined Amtrak in mid-1994, and was Northeast Corridor president until becoming acting president of all of Amtrak a year ago. Board members lavished praise on Warrington for the job he has done so far and for his vision for the future.

Board Chairman and Wisconsin Gov. Tommy Thompson said the Board's choice was unanimous, and noted, "I also served with Claytor and Downs. I think George is going to be the star of all of them." Meridian Mayor John Robert Smith, who headed the search, said the competition was tough but the decision was not. Another Board member, former Massachusetts Gov. Michael Dukakis, said, "We're satisfied we have the right guy," and said that he was much more optimistic about Amtrak's future than he was last June. Former Virginia Gov. Linwood Holton praised Warrington's ability to work with the freight railroads. Warrington later said, "In the face of all the problems Union Pacific has had, CEO Dick Davidson and his people have been extraordinarily responsive in working to get our trains over the railroad."

Deputy DOT Secretary Mort Downey cited Warrington's role as coalition builder and consensus builder. Downey also gave Warrington credit for full funding of Amtrak in the budget, perhaps the first public statement that President Clinton's fiscal 2000 budget will have the $571 million for Amtrak the Federal Railroad Administrator Jolene Molitoris promised earlier this year. The big question mark for federal funding remains nationwide high-speed rail, which could get $35.25 million if all authorized funds are provided.

Warrington said his appointment was "a genuine honor ... the proudest day of my life except for when my son was born. I want to thank the workers of this railroad. The turnaround Amtrak is experiencing is due in large part to them." He also gave special thanks to Congress and the Administration, governors, mayors, local officials, labor leaders and organization, business partners, and NARP.

Warrington continued, "With the support we've received, our goals for the future are well within reach. We will enhance and expand corridors nationwide ... We are doing the first market-based study ... introducing service standards to enhance quality and consistency of service on all our trains. We can no longer exist only with a survivor mentality, focused on cost-cutting and being apologists for mediocrity. Our future depends upon growth -- identifying and attracting new customers."

Warrington said about travel-agent commissions, "We are convinced we made the right decision." He said the Northeast high-speed rail project is on schedule for opening in November or December 1999.

Amtrak Reform Council Acting Chairman Paul Weyrich, a prominent conservative, charter member of NARP, and former Amtrak board members, told Associated Press that Amtrak's finances show "positive signs" but said it is unclear how much of that has resulted from the humming economy.

Amtrak's westbound Texas Eagle derailed on December 20, ten minutes west of Dallas, while running at a reduced speed (36 mph in a 60-mph zone) because earlier trains encountered rough track. Hospitals treated and released 15 passengers and four crew. The train earlier struck and killed a deaf woman walking on the tracks and was delayed almost three hours while Dallas police and coroner investigated.

In Houston Gulf Coast proceedings, the Surface Transportation Board, in a pro-Union Pacific decision served December 21, said rail service had improved considerably. The Board said a shippers' plan to give some customers access to more railroads amounted to open access and was beyond the Board's authority. The Board did order UP to include an infrastructure report in its annual oversight filings, which suggests that the Board read NARP's filing carefully.