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NORFOLK SOUTHERN RAILWAY AND N.C. RAILROAD CO. DISCUSS CONTINUATION OF RELATIONSHIP CONCERNING N.C. RAILROAD COMPANY'S PROPERTY

 NORFOLK SOUTHERN RAILWAY AND N.C. RAILROAD CO. DISCUSS CONTINUATION OF RELATIONSHIP CONCERNING N.C. RAILROAD COMPANY'S PROPERTY
 RALEIGH, N.C., May 14 /PRNewswire/ -- Joint statement by E. Stephen Stroud, President, North Carolina Railroad Company, and Robert E. L. deButts, Executive Vice President of Norfolk Southern (NYSE: NSC):
 Norfolk Southern Railway Company and North Carolina Railroad Company announced today they have begun discussing the continuation of their relationship with respect to part or all of the North Carolina Railroad Company's property.
 The North Carolina Railroad Company's line, which extends about 317 rail miles from Charlotte to Morehead City, has been the subject of a series of leases with Norfolk Southern due to expire Dec. 31, 1994.
 The North Carolina Railroad Company was incorporated in the mid-19th Century and has played a major role in North Carolina's economic development. Of the company's 4,283,470 shares outstanding, the State of North Carolina owns about 75 percent and private shareholders own about 25 percent.
 On behalf of the N.C. Railroad Company, Stroud expressed appreciation for Norfolk Southern's "major contribution" in providing quality rail service to Tar Heel shippers. The State of North Carolina and the N.C. Railroad Company have been important to Norfolk Southern's success over the years, deButts said. Both expressed hope that the relationship between Norfolk Southern and the North Carolina Railroad can continue.
 Stroud and deButts agreed that any long-term lease must be fair to both parties and include provisions which assure property maintenance, a reasonable rate of return for the N.C. Railroad Company and continuation of quality rail service. The two officials said their companies are committed to satisfactorily addressing these matters during the negotiations.
 Stroud and deButts are designating negotiating teams to represent their respective interests. The two men expressed hope that, although the leases do not expire until the end of 1994, the negotiating teams will move expeditiously to address the issues.
 -0- 5/14/92
 /CONTACT: Robert M. Auman, Norfolk Southern, 703-981-5426, or Scott M. Saylor, North Carolina Railroad Co., 919-829-7355/
 (NSC) CO: North Carolina Railroad Co.; Norfolk Southern Railway Co. ST: North Carolina IN: TRN SU:


JZ -- CH014 -- 0491 05/14/92 17:42 EDT
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Publication:PR Newswire
Date:May 14, 1992
Words:364
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