An Open Letter to D.L Goode and Stockholders Concerned with Norfolk Southern Railway:

Mr. Goode:

It is with great trepidation I write to you concerning your continuing poor performance in leading my beloved Norfolk Southern Railway System. I am a retired railroader and stockholder in the System and have followed your inept attempt at consolidiating the purchase of Conrail and the subsequent disaster that it brought to my Railroad, my fellow employees, and, sadly, to my portfolio.

I have watched in horror as you gave early retirements to experienced personel, spent millions to impliment Conrail with absolutely no workable plan, abandoned and dismantled track, cut forces, made bad investments, reduced service, sold productive property to short lines, implemented systems already found to be faulty and abandoned by other railroads, used lip service quality programs and generally spiralled into an abyss that, at one point, even hired outside non-railroad companies at an obscene stipend to advise you how to run a railroad. This has caused this once focused industry to become a sad ghost of itself.

In all that time, I thought you, or some member of your management team, would rise above the struggle and realize what made the Norfolk Southern Railway System the industry leader in the first place, its employees and its customers. As a retired railroader, my contacts with both management and union employees illustrate my concern. Management workers are only intrested is surviving until age 55. Working 12 to 18 hour shifts 6 and 7 days and working Districts that at one time were handled by two and three times the supervisors lead them to believe the Company is callous and has no regard for their welfare, their families or their safety. These managers complain that consolidated territories force them to run from one fire to the next, only reacting to problems. There is no time to teach and council and supervise. They have turned from being dedicated, improvising, competent employees to hangers-on, not rocking the boat and waiting for that magic 55 and the golden parachute. The union employees are even worse. They complain that no one trains them except by investigation. They are continually given conflicting instructions or instructions that change from day-to-day or from supervisor to supervisor. There are union runners on your property, Mr. Goode, waiting for any injury to call the lawyers. They work in fear of being fired and they use the lawyers to get as much from the Company before that day comes.
The rash of employees quiting after years of service should be a signal to you that something is wrong. What has happened to the dedicated people who ran the best railroad in the world? Why are the employees disgruntled? Why is there no teamwork between management and union employees? Why is distrust rampart and reporting of officers to EEOC the highest in the history of this railroad? These questions beg for answers for they are the crux of your problems that must be answered if you are to return this Railroad to its former status. Presently, I see no trend to answer the personel problem you created. Nor do I see any movement in improving customer service.

It is somewhat disheartning to see the customers reporting that Norfolk Southern uses lip service on them as well. To fail to perform real time service for your customer should not be tolerated by you or your management, but it has been, time and time again. Why must customers call a Division Supertendent or a General Manager or you to get cars placed and pulled? Why are so many good customers of the NS starting to truck their merchandise? Why has the bottom line fell to such a low level in the third quarter? NS Newsbreak blames it on the economy and the terrorism of September 11. Can we stockholders buy that? I think not, Mr. Goode.

Your direct competitor, the CSX runs similar routes and uses similar crews and their third quarter earnings skyrocketed. What are they doing that you aren't? Isn't it obvious. They are getting your (and the trucks) business. They are spending money to make money. This might seem like a novel concept to you, but it seems to be working for them. They run extra trains when they are needed. They service customers without anyone having to call the Assistant Vice President of Train Operations. They even brag about whipping the mule. But, it ain't brag when you can do it. They have a team to obtain and contain business and are utilizing it. While it seems like my Railroad is mired in fiftys management techniques, managing through fear and intimination to reduce the bottom line, even if it means the customers cars are not switched, their railroad shows strong finiancial gains. While my railroad is worried about cost-ratios and operation percentages, the CSX is servicing customers. While Norfolk Southern spends millions on mixing centers to service one customer, the CSX spends equally to service ALL customers. Every customer is not Ford Motor Company, but you must treat every customer like it is.

As I see nothing in your plans short range or long range to solve any of the aforementioned problems, I think it is time, Mr. Goode, for you and your management team to take advantage of the 55 year retirement option you installed (After all, you and your management team were among the few who didn't take advantage of the last buyout). If only one of your Vice Presidents retire, you will save more than you could have ever saved by not servicing your customers plants. It is time for new thinking and new blood to try and rebuild this system. It is time for you to step down.

Sincerely,