Daily Archives: August 3, 2006

Kellar Branch

Shell game afoot with Kellar carrier?

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As reported here on Tuesday, the carrier Peoria hired to operate the Kellar Branch and western spur, Central Illinois Railroad Co. (CIRY) which is owned by DOT Rail, looks to be acquired by a mysterious company called Central Illinois Railroad Holdings, LLC.

I tried unsuccessfully to find out any information on this “Holdings” company. The document doesn’t disclose who the directors are in the company, and there’s no information on the internet about them. Making things more questionable, their address is for a third-floor suite in a building in Willow Springs, Illinois, that the West Suburban Chamber of Commerce still shows as for lease. All indications are that this LLC was created solely to acquire DOT Rail’s assets, which begs the questions “why?” and “who are the players here?”

That’s exactly what Pioneer Railcorp would like to know. In a filing yesterday with the Surface Transportation Board (STB), Pioneer seeks to at least delay the approval of this transaction until further information is disclosed. Pioneer has an interest because there is litigation pending in state court between Pioneer and CIRY, and this could be an attempt by DOT Rail to shield their assets in the event the court rules in Pioneer’s favor.

Pioneer brings up several other oddities about this transaction. For instance, the petition was submitted on CIRY letterhead, not “Central Illinois Railroad Holdings, LLC” letterhead. Yet the “Holdings” company is the petitioner. Also, the attorney who filed on behalf of “Holdings” is Melinda Sammons, the CFO of CIRY! As Pioneer succinctly put it, “This places Ms. Sammons in the position of being both the attorney for the buyer and as also having a fiduciary duty to the seller.”

I can’t help but wonder what the City of Peoria thinks of this transaction. They have an interest, too, of course. Even Pioneer points this out:

As previously noted, the Board is fully aware of the ongoing litigation surrounding CIRY, PIRY [Pioneer], and the Kellar Branch. Would Holdings’ acquisition of CIRY change that litigation? Does Holdings plan to continue pursuit of CIRY’s discontinuance once it acquires control? Would Holdings use its newfound control and ownership to actually operate the Kellar Branch? What about the Western Connection and the interchange with UP, will those continue to operate as they do today? There is absolutely no information contained in the record of this proceeding to help the Board and the public understand the answers to these questions. Yet, Holdings’ control of CIRY could completely impact or subvert the Board’s decision making process in those other proceedings.

Is the city even aware of this? It doesn’t appear they’ve filed any objection to it yet. You’d think they’d want to know who this new carrier is going to be and perhaps get some assurance from them that their contract with the city will still be honored.

This transaction gets curiouser and curiouser.

UPDATE: Central Illinois Railroad Holdings, LLC, has withdrawn their petition before the STB (today, 8/3/06). Melinda Sammons states, “It is my understanding from my discussions with Mr. [Marc] Lerner [Branch Chief in Office of Proceedings] that this filing is not required.” So, it looks like this will go through without any oversight at all, leaving us all to wonder what will happen next.

Israel

Olmert defends Israel’s “proportional” attack

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The Times Online (London) has published an interview with Israeli Prime Minister Ehud Olmert that is as billed: a full and frank exchange. I was especially impressed with his answer to the reporter’s question about “proportionality.”

Q: But there is a sense in the world, and you must be aware of it, of lack of “proportionality”. Many people question how after two soldiers kidnapped and eight killed by Hezbollah we are now seeing upwards of 400 dead and rising in Lebanon. How can such an initial incident justify such a huge response from Israel?

A: I think that you are missing a major part. The war started not only by killing eight Israeli soldiers and abducting two but by shooting Katyusha and other rockets on the northern cities of Israel on that same morning. Indiscriminately.

Now we know that for years Hezbollah – assisted by Iran – built an infrastructure of a very significant volume in the south part of Lebanon to be used against Israeli people. The most obvious, simple, way to describe it to the average British person is: can you imagine seven million British citizens sitting for 22 days in Manchester, Liverpool, Birmingham in Newcastle, in Brighton and in other cities? Twenty two days in shelters because a terrorist organisation was shooting rockets and missiles on their heads? What would have been the British reaction to that? Do you know of a country that would have responded to such a brutal attack on its citizens softer than Israel did? Based on my knowledge of history no country in Europe would have responded in such a restrained manner as Israel did.

I don’t want now to draw comparisons [but] one could ask the question what precisely did the European forces [do] in Kosovo 10 years ago. How many innocent civilians were killed in Kosovo 10 years ago? We can draw on and on these comparisons.

What are we talking about? More than a million Israelis are sitting 22 days in shelters because of the fear of terrorists. In every single case…that we kill an uninvolved civilian in Lebanon, we consider it as a failure for Israel. And you know how many Israelis raise their voices as a result of this? And they don’t have to because we feel that we failed when we killed uninvolved people.

The difference between us and Hezbollah is that when we kill innocent people we consider it a failure, when they kill innocent people they consider it a success.

Tell me, who are they aiming at when they shoot already 2800 rockets on Haifa, Hanariya, Akko, Sefat, Afula and the rest of the places, if not to kill innocent people? So I’m sorry for every individual that was killed that was not involved.

And by the way, how do you really know that 400 innocent civilians were killed? How do you know who is innocent and who is not? Why? This is not an army. They don’t wear uniforms that distinguish them from other civilians. We didn’t attack any of the Christian quarters of Beirut. We didn’t attack any of the Christian residential areas in any part of Lebanon. We attacked only those areas where they had the Katyusha launchers, where they had the missile launchers, where they had the command positions of Hezbollah, where they had the storage houses, the logistic centres and so on and so forth.

So the fact that people were killed there who were not dressed in uniforms doesn’t mean that they were innocent civilians. There were Hezbollah people, they are the terrorists. Did you ever see terrorists dressed with military uniforms like we have in our army? No.

“Katyusha” refers to multiple rocket launchers first built by the Soviets during WWII and “able to deliver a devastating amount of explosives to an area target in a short period of time, although with low accuracy,” according to Wikipedia.

To paraphrase Olmert for American audiences, one could say, can you imagine seven million American citizens sitting for 22 days in Chicago, New York, Dallas, and in other cities?  “Twenty two days in shelters because a terrorist organisation was shooting rockets and missiles on their heads?”  What would have been the American reaction to that?икони