MAC Commends Coleman for
Supporting Railroad Anti-trust Legislation
St. Paul, Minn. (March 14, 2007) – The Minnesota Association of Cooperatives (MAC) commends U.S. Senator Norm Coleman (R-Minn.) for introducing legislation this week to promote competition within the railroad industry. Sen. Coleman joins U.S. Senator Herb Kohl (D-Wis.) as a co-sponsor of this legislation.
This new legislation, the Railroad Antitrust Enforcement Act of 2007 (S. 772), would subject railroads to the same rules of competition as other industries and eliminate obsolete antitrust exemptions, a move that would greatly help Minnesota’s cooperatives.
“Minnesota and Wisconsin are the top two cooperative states in the nation. The bi-partisan cooperation between Senators Coleman and Kohl means that help is on the way for cooperatives that depend on rail shipment of goods such as coal, fertilizer, and grain. Without access to competition for freight delivery, we have become captive shippers to certain railroads and experience crippling cost increases and jeopardized service. This situation threatens the vitality of our rural economy,” said Amy Fredregill, MAC vice president.
Currently, railroads have no incentive to provide reasonable rates or reliable service because a select few railroad companies enjoy monopoly control in the marketplace. Rail customers like Minnesota’s cooperatives are forced to pass on the costs from rail rate increases to consumers and members.
“Rural Minnesotans are being hard hit by the increased costs experienced by captive rail shippers. Our state’s farmers are typically members of the rural electric co-ops that are experiencing much higher rates due to the railroads increasing the cost of coal transportation. These farmers are also being squeezed by costs being passed off to members of grain elevator co-ops that have to build new rail shuttle loaders and pay higher rail fuel surcharges,” said Fredregill.
Joining Senators Kohl and Coleman in introducing this legislation are Russ Feingold (D-Wis.), David Vitter (R-La.) and Jay Rockefeller (D-W.Va.).
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