Federal probe of spending on local rail line warranted
While the 36-mile rail line that runs from Youngstown to Darlington, Pa., is now under a new operator, the financial records of this troubled railroad deserve to be scrutinized by the General Accounting Office of the federal government. Why? Because the Surface Transportation Board, which oversees the nation's railways, has raised the specter of improper conduct on the part of the Columbiana County Port Authority, which owns the line, and the Central Columbiana & amp; Pennsylvania Railway, Inc., which had operated it until recently.
In reviewing the records of repairs made to a section of the line, the STB wrote, "These suspicious bids demonstrate, at best, the unprofessional nature with which CCPA/CCPR documented repairs, or at worst, their effort to mislead the Board. In either case, such conduct by CCPA/CCPR is disturbing."
Seeing as how the port authority received $1.53 million in grants from the federal and state governments to help pay for the repairs to the line, an investigation by the General Accounting Office into the transportation board's concerns is not only warranted, but demanded.
Tracy Drake, the port authority's chief executive officer, has said his agency intends to challenge the STB's findings. That's not surprising. But given the numerous complaints that have been voiced by residents in Mahoning and Columbiana counties about the line, a point-counterpoint hearing won't get to the heart of the matter.
Business assumptions
From the time the port authority decided to buy the line in 2001 from Railroad Ventures Inc., a Boardman-based partnership that acquired it from Youngstown & amp; Southern Railway in 1996, there have been questions about the business plan.
However, the state and federal governments gave the Columbiana County Port Authority their blessing, and the Surface Transportation Board set the purchase price at $1.08 million. The STB also granted the port authority permission to withhold $375,000 of the amount to pay for repairs necessitated by Railroad Ventures' neglect of the line.
The recent decision by the STB grew out of Railroad Ventures' asking the federal board to reopen the proceeding and CCPA/CCPR seeking an order to compel Railroad Ventures to provide pertinent documents.
After reviewing all the filings, the STB refused to reconsider the sales price, ordered Railroad Ventures to turn over records on easements and assets, and ordered the port authority to pay $217,282, plus interest, to Railroad Ventures on the grounds that the authority had improperly spent the money.
It is this finding that justifies a full-scale probe.