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WISCONSIN CENTRAL REFUTES C&NW TRACK USE PROPOSAL IN ICC FILING

 WISCONSIN CENTRAL REFUTES C&NW TRACK USE PROPOSAL IN ICC FILING
 New Railroad Will Bring $60 Million in Public Benefits;
 Job Outlook Improves
 ROSEMOUNT, Ill., Sept. 2 /PRNewswire/ -- Wisconsin Central Transportation Corporation (WCTC) (NASDAQ: WCLX) on Tuesday refuted Chicago and North Western's (C&NW) arguments for trackage rights as self-serving, adding that its "competitive" remedies, if granted, would kill WCTC's plans to have its Fox Valley & Western (FV&W) subsidiary buy the operating assets of the Green Bay and Western and Fox River Valley railroads for $63 million.
 In a nine-volume filing with the Interstate Commerce Commission late Tuesday, numerous transportation experts including two former C&NW marketing officials, and the vice president of marketing for the J.B. Hunt truck line disproved the North Western's arguments for increased rail-to-rail competition and its claims that trucks are not a competitive factor in this case.
 Much of the testimony attacked C&NW's credibility -- citing recent reversals of that railroad's own arguments when it sold the Fox River Valley Railroad in December, 1988, as well as C&NW's sworn evidence when it attempted to buy the Milwaukee Road in 1984. Another irony is the North Western's call for dual railroad access to industries after its six-year fight to deny the Soo Line access to Midtec Paper (now Repap Wisconsin), at Kimberly, Wis. More Jobs:
 In the same filing, Wisconsin Central President Edward Burkhardt said that approximately 30 more positions would be needed, increasing to about 260 the number of employees that will be needed initially as a result of the GBW-FRVR sale.
 The company also detailed more than $60 million of net public benefits resulting from the transaction, including removal of grade crossings, elimination of bridges, development of double-stack container service and redevelopment of excess rail property. Truck Competition:
 Thomas Sanderson, vice president of marketing for J.B. Hunt, contradicted testimony filed by the North Western about certain "rail dominant" commodities. "If that is true, it will come as real news to our sales and marketing people. The fact is that Hunt hauls many, if not all, of these commodities in the Wisconsin market.... To classify the commodities on that list as rail dominant is just not correct."
 C&NW's former sales manager at Green Bay, Wis., who had been with the railroad for 25 years, said the amount of rail business siphoned off by motor carriers "was so substantial that I do not believe there is hardly enough rail business left in the Green Bay area to support one railroad, let alone three." C&NW Conditions Would "Kill the Deal"
 Thomas Power, WCTC executive vice president and chief financial officer, took note of C&NW's proposal to divert from WCTC to itself all overhead traffic from the Upper Peninsula of Michigan to Milwaukee, which represents almost 37 percent of all FRVR carloads in 1991. "If FRVR had accepted this condition from C&NW at their closing," he said, "FRVR would have been bankrupt in months.... This condition, if imposed, would unequivocally kill the deal."
 Also troublesome is C&NW's plan to use significant portions of Wisconsin Central and FV&W track to serve the same customers. In addition to reducing the railroad's volume, increasing unit cost, and inconveniencing the public, Power said, "this condition would render FV&W non-viable and is a deal killer." He estimated $46 million annually could be diverted from the revenue base of the FV&W and WCL, because C&NW would be using capital from the two smaller railroads on an "as needed" basis. He said the annual trackage rights charges paid by C&NW would amount to about $2 million in order to gain access to over $46 million in revenue."
 Robert Dowdy, president of GBW-FRVR said the C&NW's power of attorney as it exists today, "is not pro competitive, but is used solely to protect C&NW's interest in a long haul -- even at the expense of its 'de facto' single-line partners, FRVR-GBW."
 The rail lines are to be acquired from Itel Rail Corporation and encompass 479 route miles and annually generate more than 100,000 carloads with revenues of approximately $42 million.
 Wisconsin Central Transportation Corporation in publicly traded on the NASDAQ under the ticker symbol WCLX. The company's principal subsidiary, WCL, operates more than 2,100 miles of railroad serving Wisconsin, Illinois, Minnesota, Michigan's Upper Peninsula and Ontario.
 -0- 9/2/92
 /CONTACT: Tom Power, executive VP for Wisconsin Central, 708-318-4600/
 (WCLX) CO: Wisconsin Central Transportation Corporation; Chicago and North
 Western ST: Illinois; Wisconsin IN: TRN SU:


KH -- MN019 -- 6068 09/02/92 16:29 EDT
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Date:Sep 2, 1992
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