The consolidation of many as five of the nation's railroads into “one strong Midwestern road” will be proposed to Congress in hearings scheduled today by the House transportation subcommittee.
John W. Ingram, president of the Chicago, Rock Island and Pacific Railroad, who said he would propose the plan, disclosed yesterday that he would seek to link the Rock Island with some sections of the Chicago, Milwaukee. St. Paul and Pacific Railroad and the Iowa and South Dakota lines of the Illinois Central Gulf Railroad.
As part of the plan—known as FarmRail — both the Missouri‐Kansas‐Texas Railroad and the Kansas City Southern Railway might also become part of the consolidation, he said. He said that “FarmRail will not be a Midwestern Conrail"—a remark apparently meant to convey that the proposed road would not look to the Government for support. Nevertheless, he said that the plan might be moved along more quickly through Government loans authorized under the Railroad Revitalization and Regulatory Reform Act of 1976.
Mr. Ingram did not mention any specific loan to be sought, although $1.6 billion in Federally guaranteed funds have been earmarked for that purpose under the act.
The Rock Island executive, outlining the plan in broad strokes, said FarmRail would not necessarily be a corporation on its own but added that it “eventually could be.” It will not be an operating railroad,” he added, “it will be a consortium of railroads, operated in their joint best interest.”
Moreover, he maintained, no monopoly would he created because of competition from the Chicago and North Western Railway between Chicago and Omaha. He further noted that no investment would be‐required to set up the system.
Those taking part would use joint terminals, rail yards and equipment and share each other's tracks. The Rock Island, for example, late last year completed arrangements with the Milwaukee Road to share the same line between Kansas City, Mo. and Davenport, Iowa, a 243 mile stretch, that will cut duplicate trackage, reduce costs and eliminate safety hazards.
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NY Times 1/5/1978
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