For Immediate Release
July 15, 1997
Information
F. Colin Pease
(508) 663-1186
GUILFORD URGES SECRETARY SLATER TO PRIVATIZE AMTRAK
In a July 14 letter to Department of Transportation Secretary Rodney Slater, Guilford Rail President David Fink urged the Secretary to immediately begin the process of privatizing Amtrak. In his letter Fink detailed research performed by Guilford and raised numerous serious conflicts which exist within the Department in its multiple roles as safety regulator, budget overseer and member of Amtrak's Board of Directors.
In support of his recommendation to the Secretary, Fink stated, "The Group (referring to a report by the House Working Group on Intercity Passenger Rail) described Amtrak as 'awash in red ink, buffeted by conflicting missions and ballooning in debt. Amtrak faces a major liquidity crisis and probable bankruptcy."
Mr. Fink continued, "The situation has become so severe that Amtrak is now actively borrowing from its unsecured line of credit to meet basic operating expenses, essentially following the downward spiral foretold by Mr. Gillespie." Mr. Fink was referring to an earlier public statement by Amtrak Vice President Tim Gillespie, who stated, "We'll continue to borrow money until the line of credit runs out and we go bankrupt."
On May 26 Guilford Rail wrote Secretary Slater offering to purchase or lease Amtrak's Northeast Corridor. The Department has not yet responded to the May 26 letter. Prior correspondence is available on the Guilford Rail web site at www.GuilfordRail.com. The July 14 letter will be posted on the web site on July 16.
The full text of Mr. Fink's letter is attached