Public Squabble Continues Over Railroad Negotiations Stalemate

Private talks have been bogged down for two months between transportation officials and the Santa Fe Railway over hundreds of miles of track for a regional commuter rail system, but public feuding between the two sides continued unabated Tuesday.

Santa Fe Vice President Robert L. Edwards, in a growing public relations war, accused the Southern California Regional Rail Authority of “bureaucratic wheel-spinning and public posturing” in the 3-year-old negotiations, which have been deadlocked since early September.

“Instead of working with us to meet the challenge of creating a world-class commuter rail network in Southern California, SCRRA staff has launched yet another in a series of futile public relations schemes,” Edwards said at a downtown Los Angeles news conference. “They have done everything except negotiate seriously.”

Regional rail authority officials responded to the criticism by issuing a five-page news release that characterized Santa Fe’s negotiating stance as “outrageous.” The officials pointed to successful deals negotiated with Southern Pacific and Union Pacific railroads, and called on Santa Fe to follow the “leadership” of its rivals.

Edwards’ remarks and a harshly worded seven-page news release came in response to a recent move by the rail authority to seek federal intervention in the negotiations.

Citing a compelling public interest, rail authority officials filed a plea Oct. 21 with the Interstate Commerce Commission to force Santa Fe to allow commuter trains on Santa Fe track between Los Angeles and San Bernardino--whether or not the two sides agree on a fee for that service.

Regional rail officials said they had no choice but to appeal to the commission in Washington because the rail authority and Santa Fe are about $500 million apart on a deal for the railway’s 242-mile Southern California line. The rail authority has offered $300 million to buy or share the tracks, while Santa Fe has asked for $800 million.

Without a deal or intervention by the federal commission, the rail authority would be forced to start the proposed Los Angeles-to-San Bernardino service on lower quality, out-of-the-way track once owned by Southern Pacific Railroad. The line would end, at least initially, at Claremont.

At the news conference, Edwards accused the rail authority of using the Interstate Commerce Commission filing as a bargaining ploy. In releasing Santa Fe’s response to the filing, Edwards charged that regional officials have been trying to intimidate Santa Fe into lowering its price.

“Ironically, this latest scheme firmly establishes SCRRA, the public agency charged with creating a viable commuter rail network in Southern California, as the principal stumbling block to its timely creation,” Edwards said.

In an interview, Neil Peterson, the rail authority’s negotiator, said Santa Fe has a public obligation to negotiate in good faith. He said the $800-million asking price exceeds the book value for the entire railroad as determined by the State Board of Equalization.

“They think that since they are the only people who own the right of way, that they can hang on, outlast us, and watch us eventually cave,” he said. “But the question is what is the true value of the property and what is best for the taxpayer.”