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Kit Menkin's Leasing News
www.leasingnews.org Wednesday, March 6, 2002 ----------------------------------------------------------------------- Headlines---- "Yes, we have no banana's for sale" at First International
Bank You Guessed it---Fred Van Etten "This is Your life." Credit Reporting Industry Warns About False E-Mail National Leasing Introduces a New Identity Bob T. Tells Kit M. About "New Website" ELA San Francisco Conference Oct 13-15 Financial Federal Reports 19% Earnings Denis J. Stypulkoski Joins The Alta Group Krueger Joins Farm Credit Leasing Sr. Mgmt. Team Amtrack Progress in NorthEast Needs Your Support ### Denotes Press Release _____________________________________________________________ "Yes, we have no banana's
for sale" at First International Bank First International Bank is
still considering broker business, according to UPS Capital spokesperson Irene
Moore. " We have consolidated
the operation to service our UPS customers," she explained. " We have
over 1.8 million UPS customers. We
want to service them first." The original premise is similar
to American Express Business Finance Leasing approaching American Express
card customers. In this instance,
the customer is a sender or receiver of
UPS packages. While a different
department, Irene Moore says there is an
excellent customer relationship. " If someone walks in
the door, as you asked, and wants a lease, we would be happy to be of assistance,
" she explained. "We
also will continue to consider other
business applications as First International has in the past." First International Bank was
formerly named First National Bank of New England. It was sold to UPS
Capital and is now First International Bank, a UPS Capital Company. The web
site is www.firstinterbank.com. The officers we have spoken
to have been "reassigned." Dennis Cesan is now working with the 100 or so
bank loan officers to develop leasing business from the UPS customer . Other officers have gone into direct leasing sales. So although the company
MAY be taking broker business
now and in the future, it will not be through
the same First International
Bank group we worked with in the past. Leasing News spoke to several
sources, who did not want to be quoted, who told us they were being assigned
a territory, and his mandate is to sell equipment leasing to existing
UPS customers. Leasing News
learned Dennis Cesen, is being given the responsibility
of getting other producers at the old First International Bank,
who were previously selling SBA loans, etc., to start offering leasing as
well. It did not sound as if they
were laying anyone off, at the old 1st International Bank. It is more about reassigning people and making
sure that they are getting out in
front of customers. There
did not seem to be any "unhappiness"
in the new assignment. The reaction was more " I still have a job." One person while very happy with the new assignment,
did not want to say anything on the
record. An article in the February
20th Wall Street Journal said they would now be doing a lot of "cross-selling."
Of course, sending packages and making equipment leasing decision
often doesn't come from the same person at the company, but saying you are
from UPS, might get you past the secretary.
Although on the other hand,
if you have all this cash to invest in leasing, why did you recently raise
the UPS rates for sending overnight mail and packages? ( While UPS Capital spokesperson Irene Moore was an excellent public
relations person for her company,
it did appear pretty vague. "we'll take anything that comes through the door" is a far
cry from "we'll buy broker business". It appears
they are not the funding source they were before, and assigning officers in the field
instead of handling the desk, the entire process, and emphasis will
be toward existing United Parcel Service customers. ( There is no truth to the rumor Federal Express wants to buy CIT.
) ( Disclaimer: We use UPS more
than Federal Express or Airborne, but our driver has never approached
us if we wanted to lease something.
I can hear the telemarketers now, "
If you liked the way we delivered your UPS package, wait until you hear our automatic
approval up to $250,000 on an application only basis, as you have been
a long standing customer of ours, YOU ARE APPROVED---Ironically, when
called, UPS does not give credit ratings on accounts. editor ). --------------------------------------------------------------------- Whatever Happened to.... Fred Van Etten February 4th, Leasing News
asked if anyone knew where Fred Van Etten was? He e-mailed and the next day, and February
6th, we printed his response that he was in Houston,
Texas. http://www.leasingnews.org/archives/Feb2002/2-06-02.htm When Mark McQuitty allowed
us to print the abridged letter to about the demise of Republic
Leasing of Anaheim ( we had the letter since October, but that
is another story , including McQuitty's brilliant observations on aggregate
leasing and dot coms in December, 1999), it became public that
the man sent to fire McQuitty as "branch manager" in Apirl,2000,
was also the same person he recommended in June, 2000 to become the new CEO
and replace Tom Depping, Leasing News decided the readers should know more about this "very
interesting" person, especially
since he was acknowledged a
key "mover and shaker" to raise the money
to start First Sierra/Sierra Cities.
We also learned he was considering
starting up a leasing company because he and American Express made
a settlement ( and that is also another story ). "When you look up either
"good guy" or "salesman" in the dictionary, you will find a picture of Freddie
Van Etten. Freddie always has a smile on his face and the salesman's
positive attitude that the cup is half full instead of half empty. The
only place you cannot trust Freddie is on the golf course. His handicap is
a 2, not the 19 he claims when the bets are placed. Freddie, you are one
of the best and I wish you the best of success with your new venture
with the Redstone Group." Charlie Lester, LPI Financial, Atlanta, Georgia " Nicest man in the world;
always has a smile on his face. Always
has something nice to say about
somebody. I make it a point
that when I am in Houston to visit him every time. Truly, a great guy." Greg McIntosh, Snider Leasing, Sacramento, California Whatever Happened to.... Fred Van Etten Hello everyone_. As previously
mentioned in Leasingnews.org, I am still in Houston, Texas, and healthy,
happy, wiser and still occasionally hitting the little white ball on weekends.
I am with The Redstone Companies, which is a large privately held holding
company comprised of several different companies. Redstone has investments in companies involved in the banking, securities,
hospitality, real estate, golf
management, development, and ownership, and various others. Redstone as
you may remember gave First Sierra Financial our start from ground zero as the
primary investment capital and were involved in the company all the way
through to the sale to American Express. Most of you remember me from
First Sierra as one of the founders (in fact my wife, Julie gets credit for
coming up with the name) but I had been in the Leasing Industry prior to that
for most of my career, beginning with McDonnell Douglas Finance Corp
in 1978. From Long Beach, California, I was moved to Houston by MDFC in
1981 and I have been primarily here working in leasing and asset finance since
then. That probably makes
me one of the longest surviving leasing nuts
in this area! But at only 48 years old there is still a lot of drive which
keeps me going and enjoying the chase and the relationships I have built
in this business. Having been an originator,
seller, buyer, and manager with public and private companies I have to
marvel at the way our industry has changed, both good and bad, throughout those
years. Remember the TEFRA act in 1986? Leasing was supposed to be
finished then, but, as we have seen many times the industry changed to meet
the times, not disintegrated because of them. It seems that as most everything in life, things are cyclical, things
tend to repeat themselves in similar
business cycles. Looks like now the industry is going through what the Equipment
Leasing Association describes as "The Perfect Storm" brought
on by credit and liquidity issues. This too shall pass as soon as margins widen
enough in our business to begin to re-attract capital. The question is, who
will the survivors be_ To me the one thing that has
made this a great business is that it is people oriented and relationship based.
Doing business with people you know and trust has safeguards. You have
heard it said that the first lesson of lending is to "know your
customer" Certain people
have tried, and are others are continuing to try
and completely automate our business. Over the last few years people proclaiming
that the industry would be dead because of the "New Paradigm"
of E-commerce selling have so far been proven wrong. Do I believe that more companies
over time will use the Internet to promote and inform customers? Of course,
and will companies sell more in the future over the Internet? Yes, of
course, but the change won't take place over night as many have predicted.
People still buy stocks, cars, books and everything else that the e-commerce
wizards said would be automated, from traditional sources, not purely
from the Internet. So far the Internet is only a fabulous information
source. Oh well, enough preaching_ Redstone has kept me very busy
since arriving in February of 2001. Initially I ran the business development
activities at Northwest Bank, a wholly owned Redstone Financial company.
I was there until we sold it to The Whitney Bank from New Orleans in October
of 2001. I then moved over to Redstone Bank in a similar capacity and have been
working on all aspects of trying to help this bank grow. Redstone Bank is
only two years old and basically was a branch of Northwest Bank. When we sold
Northwest we decided to keep Redstone Bank. We are now looking at re-capitalizing
the bank, starting a holding company and adding a few specialty
finance companies under the bank holding company umbrella. We are continually
looking at all areas of specialty finance and we have come to the conclusion
that there are some very attractive areas which we may be able to compete
in on some selected basis. We should have some announcements on those
areas in the second quarter of this year. Lot's of things going on in
Houston right now (yes, other things than Enron!!!) like the worlds largest
rodeo, Mardi Gras in Galveston (OK, so it's not New Orleans) and the
excitement which is building for our new football team, The Houston
Texans. Don't worry, the games wont be played at Enron field!! That's the Astros
field. Houston has had it's
up and downs as well, but for me it's always
been a wonderful place to live and work. Julie and I had the best holiday
season ever, and we enjoyed being with all our friends here and in Phoenix/Scottsdale
where we spent Christmas and New Year's. I continue to hear
from and stay in touch with most of my colleagues from the First Sierra days.
In fact I think most people know that Roger Gebhart previously EVP of First
Sierra has joined us here at Redstone as well. One final note regarding Redstone,
the Redstone Golf Club, a new development here in Houston was just awarded
the 2003 through 2013 Shell Houston Open PGA tournament which was previously
played at The Woodlands. It will bring a lot of notoriety to Redstone
and will help with that side of our business, which manages and develops
golf courses. All my best to all my friends
in the industry. Fred Van Etten Executive Vice President Redstone Bank N.A. 713-316-3675 www.Redstonebank.com ______________________________________________________________________ Credit Reporting Industry Warns
About False E-Mail WASHINGTON, / -- Creditors and Consumers are being advised to
be wary of an e-mail message that has
been circulating that contains false information about consumer credit reports.
Contrary to the e-mail, credit reporting agencies do not provide
personal consumer data to "anyone
who requests it." Federal law prohibits such a practice. The toll-free number included in the e-mail is only for consumers
who want to remove their names
from mailing lists for pre-approved offers of credit generated by the major
credit reporting companies. That
number has been in effect and available
to consumers since 1997. The same e-mail was circulated last July and the Consumer Data
Industry Association (Associated Credit
Bureaus at the time) issued a news release noting the message was in error.
Creditors and Consumers can access the release by clicking on "Media Room" at
http://www.cdiaonline.org . ________________________________________________________________ #### ########################################
############### National Leasing introduces
a new corporate identity. Winnipeg,- In a move to further
strengthen its leading position in the equipment leasing industry
in Canada, Winnipeg based National Leasing introduces a new corporate
identity. "Our new corporate identity
symbolizes a company who is forward-thinking, progressive, innovative and
eager to meet the challenges and demands of our customers," says Nick
Logan, CEO and President. "The stylized "N" reflects
our goal to provide a myriad
of product options and friendly, professional service." "On behalf of everyone
at National Leasing, it gives me great pleasure to introduce our new corporate
identity. This new image accurately reflects our vision for the future and supports
our continued commitment to providing proven financing solutions
for our customers." Headquartered in Winnipeg,
Manitoba, National Leasing is 100% Canadian-owned and operated with local offices
and representation in thirteen centers across the Canada. For more
than 30 years, National Leasing has offered proven financial solutions
to business throughout Canada and the United States. A recognized leader
in equipment financing in every business sector; including agriculture, health
care, construction, manufacturing, computer technology and office interiors,
National Leasing has built a strong reputation for innovative ideas
backed by professional service. For more information, please
contact: Grant Shaw Marketing Manager National Leasing Phone:(204)954-9059 Toll Free: 1 800 665-1326 Email: grant.shaw@nationalleasing.com ( courtesy of ELAonline.com
) #### #################################
########### Bob T.to Kit M. re "New
Website" Kit: It seems you have jumped
the gun on the subject of the merger of leasing associations. But what
a stroke of genius for the name of the merged group, "UAELB" ! Bob Teichman, CLP Teichman Financial Training 3030 Bridgeway, Suite 213 Sausalito, CA 94965 Tel: 415-331-6445 Fax: 415-331-6451 e-mail: BoTei@aol.com "Providing education and
training to the equipment leasing and financing industry." Bob--- What typo? What are you talking about? The typo was right at the top
in the mention of UAEL's new website. Kit Menkin's Leasing News
www.leasingnews.org Tuesday, March 5, 2002 ------------------------------------------------------------------------- Headline--- Leasing Innovations Wins San Diego BBB 2001 Award NAELB Proposes Multi-Association Committee New UAELB Website Up and Running Bob--- Now how do I correct that???
Of all the things to screw up!!!! The site is www.uael.org _____________________________________________________________________ Equipment Leasing Association
October 13-15 San Francisco Conference The 41st Annual ELA Convention
may be many months away, but planning has already started for this premier
event, scheduled October 13-15, 2002 at the San Francisco Marriott, in
San Francisco, California. This
year's theme, LEADERSHIP MATTERS, emphasizes
a renewed focus on what matters most. Leadership takes many forms.
Individuals, companies, markets, systems and products can all be examined
in terms of their leadership characteristics. Nearly 30 sessions showcasing over 100 individuals and companies
are planned for each ELA convention.
We invite you to submit your
idea for a session at the 2002 convention. Submissions are due ELA by close of business April 8,2002. For your copy of the Call for Presentations, click here: http://elaonline.com/events/2002call.htm
You may also email jfianko@elamail.com to have the Call for Presentations
sent to you. Thank you, Michael Fleming, President ELA UPDATE YOUR INFORMATION WITH
ELA To update your personal information,
areas of interest, and receive your ELA USERNAME/PASSWORD visit: http://www.elaonline.com/memberDir/Profile/IndivForm.cfm #### #################################
##################### Financial Federal Corporation
Announces Record Earnings For The Second Fiscal Quarter Ended January
31, 2002 NEW YORK-- --Financial Federal
Corporation ("FIF" - NYSE), a nationwide, independent financial services
company specializing in equipment financing and leasing for middle market
businesses, reported net earnings of $9.2 million for its second fiscal
quarter ended January 31, 2002, a 19% increase over the $7.7 million earned
for the comparable quarter last year. Diluted earnings per share
for the quarters ended January 31, 2002 and 2001 were $0.50 and $0.43, respectively,
a 16% increase. The increase in diluted earnings per share was lower
than the increase in net earnings, due primarily to the effect that
the Company's convertible notes had on the diluted earnings per share
calculation. New business originated during the quarter amounted to $215 million.
Finance receivables outstanding increased by 12% to $1.38 billion at
January 31, 2002 from $1.23 billion at January 31, 2001. For the six months ended January
31, 2002, net earnings were $18.1 million compared to $15.0 million for
the comparable period last year, a 20% increase. Diluted earnings
per share for the six months ended January 31, 2002 and 2001 were $0.98 and
$0.84, respectively, a 17% increase. Paul R. Sinsheimer, Chairman,
commented, "We are pleased to report our 51st consecutive quarter of growth
in assets and earnings. The Company has benefited from a sharp decline
in short term interest costs while the economy has endured the effects
of the recession as well as September 11th. During this difficult period,
the Company has benefited from the lending disciplines it has embraced
since its inception in 1989. There are conflicting opinions as to
the current direction of the economy, and from our view, it is still too early
to make a definitive call. We remain confident of our ability to
perform in the current environment." Steven F. Groth, CFO, commented,
"Delinquencies over 60 days increased from 2.58% to 3.02%, non-performing
assets rose from 3.12% to 3.34%, and net annualized credit losses expanded
from 0.22% the previous quarter to 0.24%. While these statistics trended
in a negative direction, they remain below current industry levels. The
Company's outstanding long-term record of accomplishment resulted from
management's understanding and knowledge of the assets financed. Finally, I
want to point out that all of the Company's assets and liabilities are
and have always been included in our consolidated balance sheet." Financial Federal Corporation
specializes in financing industrial and commercial equipment through
installment sales and leasing programs for manufacturers, dealers and
end users nationwide. For additional information, please visit the Company's
website at www.financialfederal.com. #### #############################################
############## Information Technology Veteran
Joins The Alta Group Adding IT Expertise to Global
Consulting Services LAKE TAHOE, Nev., --The Alta
Group has announced a new alliance that will expand its consulting expertise
intoenterprise-wide technology strategy development, evaluation and
selection services. Denis J. Stypulkoski, president of ForteSolutions,
LLC, a technology management consulting firm, has joined this leasing consulting
firm as an associate. Forte Solutions helps global,
multi-billion dollar Fortune 100 companies select and implement systems
that manage lease lifecycles. The company's independent perspective on
software crosses many industries and software platforms. Stypulkoski'sfocus
will be on helping Alta clients maximize their information technology (IT)
investments to ensure that their technology isstrategically aligned with
their business objectives. "We have enormous respect
for his wealth of experience and for the leadership role he played in
setting the standard for e-commerce in our industry," said John C.
Deane, managing principal of The Alta Group, based in Lake Tahoe, Nev. "We
will be increasing the value proposition to our clients by offering them a
more complete evaluation and more detailed advice." Stypulkoski is a 20-year IT
veteran with more than a decade of experience in the equipment leasing industry.
He has held CIO-level positions at AT&T Capital, Newcourt Credit Group
(acquirer of AT&T Capital) and Seismiq, the application service provider
launched in 2000. He started Forte Solutions in 2001 after resigning from Seismiq
when its headquarters relocated from the New Jersey office he had established
and managed in Florham Park to an existing Seismiq software development
facility in San Bruno, Calif. >From 1991 to 1999, at Newcourt
Credit, Parsippany, N.J., Stypulkoski was vice president of information
technology andassumed increasing responsibilities after Newcourt's
acquisition of AT&T Capital. His organization grew from 85 to
150members and supported the Newcourt global network as well as Internet
business development, software development, datacenter operations, end-user
technology support, contract management and procurement. >From 1998 to 1999, he also
served as the IT leader for
the Lucent Technologies Product Finance
organization, a joint venture between Lucent and Newcourt where he established
a series of award-winning web sites servicing Lucent's dealers,
sales force and customers. Stypulkoski has a B.S. in computer
science and mathematics from Seton Hall University, graduating magna
cum laude in 1984. Tom Wajnert, an Alta principal,
former CEO of AT&T Capital and founder of Seismiq, has known Stypulkoski
for many years. "Denis understands the
leasing marketplace and knows that the best technology solution is the
one that most appropriately aligns to your business strategy, operational
plans, processing requirements and time frames," he said. "His
IT leadership capabilities propelled him through all levels of operations at AT&T
and then to the challenges of a start-up experiencing breakaway growth
and now to a marketplace that is pragmatic and seeking a flexible framework
for longevity and stability." The Alta Group (www.thealtagroup.com)
is a leading source of corporate consulting and advisory services,
education and training to the global equipment leasing and finance
industry. It is composed of
12 principals former CEOs, company founders
and industry organization leaders--who have more than 200 years of combined
experience. Based at Lake Tahoe, Nev., it was founded in 1992 by John
Deane, John Giddens, Bill Montgomery and Norm Chapman. ############## ########################### +++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++ United Association of Equipment
Leasing ORANGE COUNTY REGION PRESENTS: Anatomy of a Lease 101 Friday, April 5, 2002 8:00am - 4:00pm (1 hour lunch
break) Location: Pacifica Capital 8105 Irvine Center Drive, #500
* Irvine, CA 92618 $99.00 - UAEL Members * $129.00
- Non-Members History of Leasing: This segment
covers in brief the evolution of leasing from 'captives' to modern day
leasing. A brief discussion of the classification of leases from
the perspective of accountants,
the IRS and the law will be included. Credit: We'll overview this
process to give some insight into the role and purpose of credit, the elements
of small, medium and large ticket credit decisions, and credit enhancements.
Documentation: Included in this discussion will be an overview
of 12 lease documents and their purpose.
A short discussion will also cover sales, property and income taxes.
Funding: Included in this topic are discussions regarding
Sources of financing for the Broker, Lessor
and Funder, a 'due diligence' checklist, and an introductory discussion
of discounts, reserves and holdbacks. Collections: This topic includes
introductory discussions of the signs of delinquency, progression of
the collection process and remedies. We'll also explore types of repossession
and the concept of the commercially reasonable sale. Sales and Marketing: This is
a basic overview. We'll discuss target marketing, prospect lists,
telemarketing and outside sales techniques. Joanie Dalton - Chief Operating
Officer UAEL - United Association of
Equipment Leasing 520 Third Street, #201 Oakland, CA 94607 (510) 444-9235 x27 (510) 444-1346 fax joanie@uael.org www.uael.org ----------------------------------------------------------------------------- ------------------- ### ################################
###################### Krueger Joins Farm Credit Leasing
Senior Management Team MINNEAPOLISKevin Krueger recently
joined Farm Credit Leasing (FCL or the company) as senior vice president
and general manager of the company's Commercial Business Unit, which
provides cooperatives, agribusinesses, and energy and communications companies
with customized lease-financing solutions. Krueger now oversees
the unit's sales, operations and marketing activities. He reports directly
to FCL CEO and President Philip J. Martini. Krueger brings more than 20
years of equipment leasing experience to his position. He was most recently
chief marketing officer of savvybridges, inc., a software and professional
services company serving the leasing industry. Prior to that, Krueger
spent 18 years with Cargill Leasing/Firstar Equipment Finance in various
management capacities ranging from sales to operations. He left the company
as senior vice president of its Capital Equipment Group. Krueger has
also worked with GATX Corporation, Congoleum Corporation and Coopers &
Lybrand. He has a bachelor's degree from St. Mary's College of California
and an MBA from De Paul University. FCL provides equipment leasing
and related services for all types of vehicles, equipment and machinery.
It is among the nation's 50 largest leasing companies with more
than $2.1 billion in assets under management. FCL is part of the 86-year-old,
$101 billion Farm Credit System, one of the largest and oldest cooperatives
in the nation. Today, this national network of approximately 125 borrower-owned
banks, associations and service corporations provides production
agriculture with approximately one-quarter of its credit and financial
needs. CoBank, one of seven banks in the Farm Credit System, is FCL's majority
common stockholder. With $25 billion in assets, CoBank specializes
in agribusiness, agricultural export, rural communications and rural energy
financing. AgFirst Farm Credit Bank of Columbia, S.C., is FCL's minority
common stockholder. The $12.9 billion bank provides funding and financial
services to 24 farmer-owned financial cooperatives in 15 eastern
states and Puerto Rico. The remaining five Farm Credit Banks also have an ownership
stake of preferred stock in the company. In addition to its corporate
headquarters, FCL maintains 11 sales offices throughout the country. CONTACT: Farm Credit Leasing, Minneapolis
Brian Delgado, 763/797-3418
Fax: 763/797-3555 email: bdelgado@fcleasing.com
#### ########################
################################### Amtrak president says progress
in Northeast can be repeated with more federal funds By Laurence ArnoldASSOCIATED PRESS WASHINGTON - More people are traveling
between New York and Washington
by train than by air, Amtrak President George Warrington said Tuesday. The route is served by Amtrak's premier train, the high-speed Acela
Express, as well as conventional
trains. To introduce Acela Express, Amtrak relied heavily on its most
recent major infusion of federal funds - $2.2 billion approved by Congress
in 1997. "This is the first time ever in the history of Amtrak that we
are dominating that market,"
Warrington said in an interview with The Associated Press. Amtrak competes with
hourly shuttles offered by US Airways and Delta between New York and Washington.
Warrington said Amtrak captured
52 percent of the air-rail market between the two cities in the last
three months of 2001. David Castelveter, a spokesman for US Airways, said
the airline does not disclose how many people ride its shuttles. Peggy Estes, a spokeswoman for Delta, said, "The discerning
customer remains loyal to the Delta
Shuttle." Warrington said Amtrak's market share will continue to grow if track
improvements in the Northeast help reduce travel times. But that will
take more federal dollars - Warrington's top priority. He is pressing Congress
for a major increase in funding even as lawmakers weigh proposals to
close or restructure Amtrak, the nation's provider of intercity passenger
trains for 31 years. "This nation spends more money annually on cleaning up roadkill
on highways and on salt for snow removal"
than on passenger rail, Warrington said. He urged Congress to recognize
that intercity train service is a public service, worthy of federal
support, rather than a business that can achieve profitability. Amtrak has received federal appropriations of $521 million each of
the last three years - less than 1 percent
of all federal transportation spending. President Bush has proposed
the same amount for the fiscal year that begins in October. Amtrak has requested
$1.2 billion and has threatened to cut some or all of its 18 long-distance
trains unless it receives that amount. Warrington said 30 years of "muddling through" has left
Amtrak with a $5.8 billion backlog in needed work
to its trains, tracks, rail yards and stations. A key Amtrak ally,
Sen. Ernest Hollings, D-S.C., plans to propose legislation Wednesday that
would extend Amtrak's existence five more years and authorize up to $4.6 billion
a year for Amtrak operations, renovations to Amtrak-owned tracks in the
Northeast and development of new high-speed corridors around the country.
Hollings spokesman Andy Davis said the bill envisions a major rail development
program, on par with the construction of the interstate highway system.
"He's saying we need a larger vision for transportation in this country,"
Davis said. Warrington said the Hollings bill is significant because it proposes
a level of federal funding sufficient
to maintain the national rail system that lawmakers demand. Compared
to federal spending on aviation and highways, Warrington said,
the money in the Hollings bill "is a drop in the bucket." But funding for
Amtrak, always a contentious topic on Capitol Hill, is a particularly hot subject
this year. Amtrak lost $1.1 billion in 2001, the most in its 30-year history.
To cut costs, Amtrak is eliminating
1,000 of the company's 24,600 jobs and making other cuts in training, advertising
and equipment maintenance. The Amtrak Reform Council, created by Congress in 1997, released
a plan last month that called for
breaking up Amtrak and franchising out some routes to introduce competition
into passenger rail. Sen. John McCain, R-Ariz., a leading congressional
critic of Amtrak, has proposed a radical restructuring that would abolish
Amtrak and maintain only those routes taken over by the private sector. Warrington scoffed at the idea that private companies would be interested
in running passenger trains.
"If there was money to
made, and this were a profitable enterprise, there would be a long line at my
door," he said. "There never has been, and there never will be." He also
disagreed with those who say Amtrak's long-distance overnight trains primarily
serve leisure travelers. On the Net: Amtrak: www.amtrak.com Policy Statement Policy Statement---Nothing
is sent out that is not "fair." Always unbiased reporting. Fairness always.
If it is questionable, we will ask the writer's permission to quote them. We
will print information without attribution, but feel as long as we do not name
the person who sent it, we can use the information. Any information
we think is suspicious, we try to have if substantiated first by at least
two reliable people. We will not purposely send out "negative"
news. We prefer "positive" news. We have no "axe"
to grind or are not paid or seek
or accept any remuneration for product or promotion. We do not spam anyone.
To be added to the mailing list, you must request it. We do not send
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We do not share our mailing list with anyone. We try not to send more than
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