California Western/Mendecino Coast

Bob Yarger · **Posted:** Sat Dec 07, 2002 8:43 pm

This is slightly off-topic, but the recent announcement of possible bankruptcy for the California Western reminded me of a question I've had for some time. If you think it is too off-topic, please respond privately.

When the railroads began union busting during the Reagan Administration, there was an ICC decision made regarding the Mendecino Coast Ry., which somehow is (I think) another name for the California Western. This employee protection decision is sometimes still quoted regarding RR line leases. Can someone explain this decision and what it has to do with the CW? Was Mendecino Coast a holding company, a real RR, or what?

ryarger@rypn.org

Earl Knoob · **Posted:** Mon Dec 09, 2002 10:01 am

Bob: The actual details are a bit foggy, but "Mendicino Coast Ry" was a corporate subsidiary of Kyle Rys set up to operate/own the CWR. They did this with a couple of other operations too. The LK&P was operated by "Railroads of Hawaii" and the C&TS was operated by (I kid you not) "The St. Louis Car Company". All were subsidiaries of Kyle Rys.

> This is slightly off-topic, but the recent
> announcement of possible bankruptcy for the
> California Western reminded me of a question
> I've had for some time. If you think it is
> too off-topic, please respond privately.

> When the railroads began union busting
> during the Reagan Administration, there was
> an ICC decision made regarding the Mendecino
> Coast Ry., which somehow is (I think)
> another name for the California Western.
> This employee protection decision is
> sometimes still quoted regarding RR line
> leases. Can someone explain this decision
> and what it has to do with the CW? Was
> Mendecino Coast a holding company, a real
> RR, or what?

Jim · **Posted:** Tue Dec 10, 2002 2:02 am

Mendocino Coast is a ICC settlement involving the lease of the CW to a new corporation. A twenty day notice of intent is filed and at the end of the waiting period, the lease can take effect without a settlement being reached.

Pretty standard protective conditions apply as far as relocation for affected employees, wage continuation for a period of years after the change, etc.

jimhollis@ev1.net