MOUNT VERNON — The days of single-line railroad service may be coming to an end. According to supporters of new legislation pending in Congress, it will benefit farmers by ending the exemption from federal antitrust rules that have allowed single-rail line suppliers to have monopolies in rural areas of the United States, including Ohio. The Railroad Antitrust Enforcement Act (H.R. 1650 and S. 772) has already passed the House and Senate Judiciary Committees by a bipartisan vote. It awaits action by the full House and Senate.
“Railroad monopolies are crippling economic growth in Ohio’s 18th congressional District,” said Rep. Zack Space, D-Dover. “Our farmers, our manufacturers and our business owners are being devastated by the exorbitant cost of transporting their goods. That’s not only damaging to these businesses, but it’s horrible for consumers.”
Space is vice chairman of the House Transportation and Infrastructure Committee’s Subcommittee on Railroads.
Most sections of the 18th District are served by only a single rail line; the exceptions are Chillicothe, which is served by Norfolk Southern and CSX Transportation, and the northeast corner of the district, including Dover and New Philadelphia, which is served by the Wheeling & Lake Railroad, the Ohi-Rail Corp. and R.J. Corman Railroad out of Cleveland. The vast majority of the northern half of the 18th District is served exclusively by Ohio Central Rail Systems, based in Coshocton.
OCRS spokesman John B. Corns declined to comment on the legislation, citing the pending sale of the company, which was reported in the Mount Vernon News on Aug. 4. Corns said the sale of the company is progressing and should be finalized next week.
The legislation is supported by a coalition of interest groups, including the American Farm Bureau Federation, the National Farmers Union, the American Corn Growers Association and the National Rural Electric Cooperative Association.
“It’s a real problem,” said Knox County Farm Bureau president Marilyn Ruprecht, who noted that in more isolated Western states, some farmers have formed co-ops just to buy short-line railroads in order to avoid hauling fees and limited car availability. She added that with the decline in railroads in recent years, it is becoming more and more time consuming for farmers’ cooperatives to get rail cars, as fewer are now in service.
Larry Batdorf of the Farmers Exchange central office in Marion said the cooperative doesn’t see too many surplus charges, as those tend to be levied against buyers. He said the one exception to this is fertilizer shipments, which incur surcharges on an incoming basis. Batdorf said the Farmers Exchange did not harbor any concerns regarding the sale of OCRS.
Knox County Farmers Union president and 90th District State Representative candidate Duane Grassbaugh hopes business can continue as usual, as rail service is a critical part of the picture for farmers in rural central Ohio.
“Having the rail service provides our local farmers with a viable grain market closer to home, which saves time and money for them,” Grassbaugh said.
He added that with current fuel prices, the cost effectiveness of railroads looks better than ever.
Parts of the 18th District, including Millersburg, McConnelsville, Centerburg, Fredericktown, Danville, as well as many other towns in heavy agricultural areas, are not served by rail at all any more. Many old rail lines have been converted to bike or walking paths, or have simply been abandoned. The recent energy crisis has provoked talk of restoring at least some of these discontinued lines.
“We need tax credits and greater federal funding to expand infrastructure in Ohio,” Space said.