Nancy Pelosi's Jobs Plan: Shut Down Non-Union Plants in Right to Work States (Except for GE's)

House minority leader Nancy Pelosi has weighed this week in on the ongoing dispute between Boeing and the National Labor Relations Board, stating that the aircraft manufacturer's South Carolina facility should shut down if it can't unionize [video at link- NANESB!].

Interestingly, Pelosi's comments come more than two years after workers at the Charleston, SC plant voted overwhelmingly to decertifty their union.

In a move that seemingly went under the radar back in May, General Electric [NYSE: GE] announced that they were constructing a new 500,000 square foot facility to build locomotives in right-to-work Fort Worth, TX- shifting production from closed-shop Erie, PA with no apparent objection from either Congresswoman Pelosi or the NLRB.

Other venues under consideration included Lynn, MA and Mexico. With rival Caterpillar's [NYSE: CAT] subsidiary Progress Rail opening up a new facility in Indiana, GE and Local 201 of the International Union of Electrical Workers were unable to come to any sort of agreement regarding wages.

While GE's Railway unit CEO Lorenzo Simonelli disclosed that a Mexican site had been under consideration by GE they ultimately chose the Ft. Worth site for largely political reasons.

The Fort Worth choice saves Immelt from the potential embarrassment of having the facility go south of the border while he serves as chairman of President Barack Obama's Council on Jobs and Competitiveness.

The Obama Administration had previously lavished Immelt's General Electric with millions in stimulus money and 'green energy' grants while the conglomerate continued to outsource jobs overseas. Prior to January of this year, GE was also the parent company of NBC/Universal entertainment, whose networks frequently act as the Obama Administration (or Obama campaign's) unofficial mouthpiece. Earlier this year, Comcast [NASDAQ: CMCSA] gained a majority control of the NBC networks.

Since the May announcement about the Texas locomotive facility, General Electric has announced they are breaking ground on two more projects in right-to-work states.

Last month, the conglomerate announced that they will be building a $95 million 236,000 square foot facility that will make components for mining equipment- also in Ft Worth, TX.

Meanwhile, in Auburn, AL, GE is breaking ground on a new jet engine component factory this month. Like the two facilities in Fort Worth, the NLRB apparently sees no problem with Immelt's GE setting up shop in right-to-work states as they've remained conspicuously silent on the matter.

[Hat tip: Director Blue, Lonely Conservative, Eat it or Wear It]

Today's Train of Thought- Crossing a Warrior; September 7, 2011

Today's train of thought takes us to one of WATCO's operations in the Heart of Dixie- the Alabama Southern, which operates some 80 miles between Columbus, MS and Tuscaloosa, AL.

Thus portions of the line was originally chartered as part of the Mobile & Ohio Railroad, which became part of the Gulf Mobile & Ohio towards the end of the Great Depression in 1940. In 1972, the GM&O merged with the Illinois Central to form the Illinois Central Gulf. By the mid 1980s, the line was part of several hundred miles worth of trackage from Minnesota to Alabama that the ICG had divested, forming half a dozen regionals in the process. The Columbus-Tuscaloosa segment became part of the Mid-South railway, which in turn was acquired by the Kansas City Southern in 1994. However, KCS for the most part seemed primarily interested in the Shreveport, LA to Meridian, MS portion of the former Mid South line and in 2005, leased the 80+ miles between Columbus and Tuscaloosa, AL to Kansas-based WATCO Companies. WATCO began operations under the name Alabama Southern that year and has been hauling steel, lumber, aggregates and other commodities ever since.

Earlier this year, the railway suffered a significant setback when one of the many deadly tornadoes that tore through the region knocked down the steel Hurricane Creek trestle east of Tuscaloosa. The 1909 built structure was one of the largest steel structures in the southeastern USA. According to a local conservation group, they have been in direct consultation with both WATCO and Opelika, AL-based Scott Bridge on guidelines for a replacement structure. Since the tornadoes, the Alabama Southern has been interchanging with CSX in Birmingham, AL via a detour on Norfolk Southern.

However, to the west, the 1898-built combination steel and timber trestle across the Black Warrior River in Tuscaloosa still stands. Here, railpictures.net contributor Chris Martin caught WAMX (Webb Asset Management) SD40-2 # trundling across the eastern end of the Black Warrior River trestle at a brisk 5 MPH with a trip of SD40-2s and some general freight in February 2008.

Iron Horse Update for July 2011- 32 Killed in China High Speed Rail Collision; Zephyrs & Iron Horses Gather in Quad Cities, CSX vs Trial Lawyers

ILLINOIS: Rock Island's Train Festival 2011 is in the books and organizers say the four-day event drew more than 40,000 people to the Quad Cities, translating to millions of dollars put into the local economy.

"For each individual that comes in, they spend 200–300 dollars a day in restaurants, hotels, and entertainment. That's spent after they leave the festival," Nelson said, "this is good clean economic industry. They bring in their money and then they leave."

Folks from at least 46 states and 14 foreign countries are checking out the locomotives

Among the featured locomotives at the 2011 event were Nickel Plate 2-8-4 Berkshire #765 and Iowa Interstate's two Chinese made 'QJ' class 2-10-2 steam locomotives.

Photo- Tom McNair

The Nickel Plate #765 travelled from Logansport, IN to and from the Quad Cities over a Norfolk Southern/Toledo Peoria & Western/Iowa Interstate routing and powered eastbound excursions to Rock Island and Bureau IL and back and westbound excursions over the Government Bridge and west to Walcott, IA along with IAIS QJ 2-10-2 #6988.

Photo- PeytonG

Although Santa Fe 3751 wasn't able to make it out from California this year, the Illinois Railway Museum in Union, IL managed to step up and send their Nebraska Zephyr trainset that they purchased from the Chicago, Burlington & Quincy in 1968. Although operational, this is the first time the Nebraska Zephyr trainset has ventured out from the Illinois Railway Museum under it's own power in more than 43 years.

Curiously, with Nickel Plate #765 being made by Lima Locomotive Works in 1944 and the Iowa Interstate's Chinese QJ steam engines fabricated by the Datong Locomotive Factory in 1986, the 1936-made Nebraska Zephyr trainset featured the oldest motive power hauling excursions at Train Fest 2011. According to the Illinois Railway Museum, CB&Q E5(A) #9911A is also the last surviving locomotive of its kind. On Sunday July 24, the Zephy trainset powered an excursion from Rock Island to Bureau, IL and back over the Iowa Interstate's former Rock Island Chicago-Council Bluffs, IA line.

The Nebraska Zephyr travelled on Canadian Pacific's former Iowa, Chicgao & Eastern (ex I&M Rail Link exx Soo Line nee Milwaukee Road) Chicago line before crossing the Mississippi RIver and turning south towards the Quad Cities at Subula, IA and heading south on the ex-Milwaukee Road line (now CP Rail) to Davenport. Also along for the ride were the museum's CB&Q EMD SW7 #9255 and Chicago & North Western F7A #411.

Other attractions at the 2011 Train Festival included Flagg Coal 0-4-0 #75, Lehigh Valley Coal 0-6-0 #126, Viscose 0-4-4 #6 and replica Central Pacific 4-4-0 #63 (aka Leviathan).

Nor date or venue has been announced for Train Festival 2012 yet. With the combination of the state's centennial and ongoing restoration work towards Santa Fe 4-8-4 #2926, I wouldn't be shocked to learn if the event moved out west to the Land of Enchantment. But then again, it's also Arizona's centennial and the Grand Canyon Railway already has established a history of running steam-powered excursions. Then again, that's just idle speculation on my part.

photo- Kevin Burkholder

PROVIDENCE & WORCESTER: Providence & Worcester [NASDAQ: PWX] is reportedly leasing a trio of former Oakway Leasing SD60s from GATX [NYSE: GMT]. GMTX SD60s #9014 and #9059 were spotted transiting via the New England Central in White River Jct, VT on July 25 (above) destined for the P&W. Reportedly the cab signal equipment that Amtrak requires to operate on the Northeast Corridor were scavenged from the P&W's two GE Super 7s. According to Kevin Burkholder, the cabs and rooflines have been modified for the six-axle leasers to operate under the catenary on the NEC in Rhode Island as well as between New Haven CT and Queens, NY.

The 6-axle EMD leasers represent a departure for the P&W, who have demonstrated an affinity for burly, 4-axle GE products purchased secondhand from the New York, Susquehanna & Western, BNSF or CSX. It is thought that the blue & white EMD's will be powering the stone trains from the Tilcon Stone quarry in North Branford, CT to the New York & Atlantic interchange in Queens, although some have expressed doubts that Metro-North (the commuter agency that operated the NEC between Penn Station and Connecticut) is reluctant to allow 6-axle units on their rails.

The SD60s were leased to the Burlington Northern in 1986 through Oakway, Inc- a subsidiary of Corrnell Rice & Sugar- in a first of it's kind "Power by the hour" arrangement in which BN purchased nothing more than the electrical output from the fleet of SD60s and leased on a kilowatt hour basis.

Xinhua photo

CHINA: At least 35 people were killed and nearly 200 injured when two high speed trains collided in the eastern province of Zhejiang on July 23rd.

The first train was traveling south from the Zhejiang provincial capital of Hangzhou when it lost power in the lightning strike and was hit from behind by the second train in Wenzhou city at 8:27 p.m. (1230 GMT) Saturday, the official Xinhua News Agency said. The second train had left Beijing and both trains were destined for Fuzhou in eastern Fujian province.

The Ministry of Railways said in a statement that the first four carriages of the moving train and the last two carriages of the stalled train derailed.

Begun in earnest in 2007, China's high speed rail projects were hailed by many as an example America should follow if it were to remain competitive on the world stage. However, in recent months, allegations of graft, kickbacks and corruption have resulted in many senior level officials in China's Railway Ministry being forced to resign, including Railways Minister Liu Zhujin.

Domestic media coverage of the crash has been uncharechteristicaly critical, with Party censors ordering reporters to discontinue their probe into the crash and focus on 'touching stories'. Comments questioning the official version of events or sharply critical of the Communist Party's handling of the aftermath are appearing on Chinese microblogging sites like Weibo, often faster than government censors can delete the offending comments.

CSX: Nearly a decade after paying out in asbestos-related lawsuit settlement, CSX [NYSE: CSX] is suing Pittsburgh-area trial law firm of Robert Pierce & Associates alleging fraud and racketeering in pursuit of claimants and settlements.

CSX's lawsuit against the Peirce firm is rooted in the last days of the mass asbestos lawsuits, when plaintiffs' firms routinely rounded up hundreds or thousands of people who had been exposed to the cancer-causing flame retardant, and brought gargantuan claims against manufacturers and employers.

CSX alleged that in 1999, an employee named Danny Jayne went to an asbestosis screening set up by the Peirce firm or its affiliates. A doctor found abnormalities on his x-ray, and in 2002, the company agreed to settle his claim for $7,000.

Meanwhile, the company alleged, another CSX employee named Ricky May was screened and tested negative for asbestosis.

But at a subsequent screening in 2000, a contractor working for the Peirce firm helped arrange for Mr. Jayne to pretend to be Mr. May, CSX claimed. That resulting x-ray was used by the firm to justify a claim on behalf of Mr. May, which CSX settled for $8,000.

CSX said the law firm took advantage of an expedited court system that didn't allow for scrutiny of individual cases and pursued the cases with fraud and negligence. The Peirce firm didn't deny that Mr. May and Mr. Jayne had pulled a fast one, but argued that they had acted without the lawyers' knowledge or encouragement.

In August 2009, a federal jury in West Virginia found that the Peirce firm and its contractor weren't liable for fraud. That, however, didn't end the matter.

CSX has since pursued a broader theory, outlined in detail for the first time in a July 14 court filing: that the Peirce firm pursued "a calculated and deliberate strategy" of "unlawful conduct, including bribery, fraud, conspiracy and racketeering."

CSX said the firm used "intentionally unreliable mass screenings" by a radiologist who had a criminal history and a doctor who has been accused of tailoring diagnoses to fit lawsuits.

The company pointed to 11 cases in which Peirce-paid professionals found no signs of asbestosis in an employee, then later screened the employee again and found the disease. It settled just one of the cases, for $25,000.

CSX is going after the Peirce firm using the civil provisions of the 40-year-old Racketeering Influenced and Corrupt Organizations, or RICO, statute. RICO is a law more often used by law enforcement to prosecute organized crime.

The firm "repeatedly used or caused their agents to use the mails and wires," CSX said in a July 14 court filing, characterizing the communications as "mail fraud" and "wire fraud."

Neither CSX nor the Peirce firm would discuss details of the case, now before Senior District Judge Frederick P. Stamp Jr.

Legal experts are hard pressed to think of another case where a corporation on the recieving end of mass litigation retaliated by invoking RICO against trial lawyers. Even if CSX falls short in their attempt to being RCO charges against Pierce & Associates.

According to Attorney Mark Behrens of the Washington, D.C., defense firm Shook Hardy & Bacon CSX would be the third company in recent years to take such action against a law firm. The two other companies won their respective suits- interestingly, one of them was another railroad. In 2010, a judge and jury ruled that MacComb, MS based lawyer and former Democratic state senator William Guy pay the Illinois Central Railroad $420,000 in damages after representing plaintiffs thay they knew had been awarded a settlement from an earlier suit.

photo- Ray Peacock

ARKANSAS & MISSOURI: As part of its ongoing 25th anniversary celebration, the all-ALCo Northwestern Arkansas shortline Arkansas & Missouri continues to operate a slew of excursions between Springdale and Fayetteville, AR.

This includes an August 14 run between Springdale and Winslow, AR that will be a fundraiser to help in the ongoing efforts in rebuilding Joplin, MO after May's deadly F5 tornado tore through the city center. Riders are also invited to bring paintbrushes, theater makeup and fabric to help the East Middle School's art and theater department after the tornado levelled the school.

ALABAMA: Rail America [NYSE- RA] announced in April that it would be acquiring the Gulf & Ohio's three disconnected Alabama shortlines, the 15-mile Conecuh Valley Railroad, the 36-mile Three Notch Railroad and the 20-mile Wiregrass Central.

The acquisitions by Rail America come a few months after the Gulf & Ohio acquired the previously independent Lancaster & Chester in North Carolina. That deal was finalized in November 2010.

Photo Matt Adams

PATRIOT RAIL: Boca Raton, FL-based Patriot Rail announced their aquisition of six railroads formerly operated by the Weyerhaeuser company [NYSE- WY] was finalized this year.

• the DeQueen and Eastern Railroad (DQE) operates over 50 miles in southwest Arkansas;
• the Texas, Oklahoma & Eastern Railroad (TOE) operates over 41 miles in southeast Oklahoma and connects directly with the DQE at the Oklahoma/Arkansas border;
• the Columbia & Cowlitz Railway (CLC) operates over 14 route miles in southwest Washington;
• the Patriot Woods Railroad (PAW) operates over 23 route miles in southwest Washington and connects directly to the CLC;
• the Golden Triangle Railroad (GTRA) operates over 9.5 route miles in central Mississippi; and
• the Mississippi & Skuna Valley Railroad (MSV) owns 22 route miles in Mississippi.

This brings the total number of railroads owned and operated by Patriot Rail to 13 (although under Weyerhauser, there was little if any distinction between the Texas, Oklahoma & Eastern and DeQueen Easter and the Columbia & Cowlitz and Weyerhauser Company Forestry railroad). In the above photo, a quartet of Weyerhauser Woods SW1500s is seen crossing a trestle in Ostrander, WA just north of Longview, WA in March 2006.

Today's Train of Thought- Courtesey the Red White & Blue

Prior to the nation's 1976 bicentennial, a number of American railways decided to mark the occasion by introducing one-of-a-kind bicentennial paint schemes. The paint scheme was usually limited to one or two engines- some of which were renumbered 1776 or 1976 for the occasion.

A number of these locomotives have since been repainted, sold, retired or scrapped since then, but there were a number of holdouts. The Alaska Railroad had a pair of F7As that remained in the bicentenial scheme well into the 1980s. Belt Railway of Chicago had one of their then-new MP15AC's delivered in a red, white & blue scheme which didn't get repainted until the late 1990s. Pennsylvania's Pittsburgh and Shawmut was apparently so taken with their bicentinial scheme that they repainted the remainder of their small fleet of SW9s in red white & blue until their 1999 takeover by Genesee & Wyoming. ALCo holdout Delaware & Hudson had a chop-nose RS3u renumbered 1976 that was stored serviceable by the time then-parent company Guilford divested themselves of the D&H. The locomotive never saw service again with the D&H, but it found a home along Pennsylvania's Northern Tier hauling freight and excursion trains for the Tioga Central- where it still remains in its bicentennial colors.

With that in mind, today's star spangled train of thought takes us to the deep south and features some red white and blue engines hard at work.

A solid set of rent-a-wreck SD40-2s- with red, white and blue Helm Leasing #6204 and #6206 leading the way- trundle across the Chattahoochee River Bridge between Phenix City, AL and Columbus, GA with Norfolk Southern stone train 67G in October 2007. Interestingly, railpictures.net contributor Casey Thomason was watching the train approach from another Time Zone as the Georgia-Alabama state line marks the boundary between the Eastern and Central Time Zones.

As all-American as this scene might look, the leading pair of locomotives started out life in Canada, built at EMD's London, ON shops for BC Rail. Not too long after the SD40-2s were delivered, the BC Rail went from a two-tone green paint scheme to red white and blue up right up until their 2003 takeover by Canadian National. The CN deemed the units surplus and they were acquired by Helm Financial and subleased to railroads like Norfolk Southern, Pan Am Railways or Kansas City Southern.

At Least 269 Killed As Second Round of Deadly Storms, Tornadoes Rake Southeastern US

At least 269 people were killed in 6 states after another storm system moving through the southeastern USA spawned deadly tornadoes on Wednesday.

Dozens of tornadoes roared through north-central Mississippi, Alabama and Georgia on Wednesday, splintering towns and families in one of the deadliest natural disasters in U.S. history. The worst of it fell along a path that began in Tuscaloosa and stretched eastward through Birmingham, where 100-mph winds crushed houses, schools and businesses.

"There is massive devastation out there," a grim Gov. Robert Bentley said during an appearance today on Good Morning America.

Bentley, a Tuscaloosa native, declared a state of emergency and mobilized about 2,000 Alabama National Guardsmen. He said emergency responders were still trying to locate survivors and identify the bodies of the deceased.

Across the Southeast, more than 200 were confirmed dead in one of the deadliest outbreaks in nearly 40 years. Dave Imy, a meteorologist with the National Weather Service, said the number of deaths was the most in a tornado outbreak since 1974, when 315 people died.

The 1974 'Super Outbreak' was through to have generated 148 tornadoes from Laurel, MS to as far north as Windsor, ON, Canada. The Southwestern Ohio town of Xenia bore the brunt of a ½ mile wide funnel cloud that killed more than 30 people.

Wednesday's storms had nearly matched the 1974 outbreak in terms of scope and casualties.

The National Weather Service's Storm Prediction Center in Norman, Okla., said it received 137 tornado reports into Wednesday night. The storms forced authorities in some places into makeshift command posts after their headquarters lost power or were damaged, and an Alabama nuclear plant was using backup generators to cool units that were shut down.

A tornado expert at the Oklahoma center said it appears some of the tornadoes were as wide as a mile and likely packed a wallop that only 1 in 100 twisters ever reach. It could be days, however, before scientists make an official determination.

Footage from storms chasers north of Philadelphia, MS on Apr. 27, 2011

The storm killed at least 33 people in Mississippi prompting Gov. Haley Barbour to declare a state of emergency for 39 Mississippi counties.

Another Horn of Africa Update: U.S. Commandos Re-Take Japanese Tanker; Danish Yacht Seized by Pirates

OMAN: U.S. Commandos have boarded a Japanese oil tanker that was seized by pirates off the coast of Oman and re-taken the vessel without firing a shot on Sunday.

Twenty-four crew members on the MV Guanabara took refuge in a protected part of the vessel after reporting they were under attack Saturday, roughly 328 nautical miles southeast of Duqm in southern Oman.

A special unit from the destroyer USS Bulkeley boarded the oil tanker Sunday and detained the suspected pirates, according to a news release from the Combined Maritime Forces (CMF). No shots were fired and no injuries were reported.

"The ships and aircraft under my command have today scored a real and immediate victory through the disruption of a suspected act of piracy and the detention of individuals believed to be engaging in piracy," CMF's counter-piracy commander, Abdul Alheem, said in a statement.

Two vessels from the NATO counter-piracy task force- the USS Bulkeley and the Turkish frigate TCG Giresun- received a distress call from the Guanabara and shadowed the vessel before it was boarded by the commandos.

The captured pirates will reportedly face trial in Tokyo.

PUNTLAND: Seven Danish nationals were captured by Somali pirates in the Indian Ocean on Feb. 24th after their yacht was seized. This captives includes a family of five (the parents and three children) as well as 2 crew members.

An official from the village of Bandarbeyla in Puntland said that it was likely the Danes were being held in a mountainous region called Hul Anod. The official also said that a warship was spotted some 1.5 miles off the coast of the village and cautioned against any sort of military operation after the massacre of 4 Americans at sea last month.

According to piracy expert, the average ransom payout for a large shipping vessel and its crew is in the neighborhood of $5 million. A couple from the UK were released in September 2010 reportedly after a ransom of $1 million was paid out.

MOGADISHU: Somali officials have reported that an American from Alabama who joined the Al Shabaab Islamist group was killed in clashes with soldiers from the Somali transitional government and African Union peacekeepers this week.

Somali Defense Minister Abdihakim Mohamud Haji Fiqi told The Associated Press that Somali officials do not have a body and that the intelligence reports have not yet been confirmed.

"We have information saying that he died," Fiqi said. "I'm not sure 100 percent sure but this is the information that we get from different sources. We need to make sure."

Omar Hammami, who grew up in the middle-class town of Daphne, Alabama, joined the al-Qaida-linked Somali militants in 2007 while he was in his early 20s. He became the most high-profile American member of al-Shabab and had taken on the nom de guerre of Abu Mansour al-Amriki, or "the American."

Forces from the Somali transitional government, backed by African Union peacekeepers have been mounting a countrattack against the Islamist al Shabaab militia. On Monday, the Somali and multinational forces were able to seize control of the border town of Bulo Hawo- along the Kenyan and Ethiopian border- from Al Shabaab; the first time forces from the UN-backed Transitional government were able to exert control over territory outside of Mogadishu.

[hat tip: Jammie Wearing Fool]