I received this press release forwarded to me a few minutes ago. (Disclaimer: I am an officer of the Baltimore Chapter NRHS, named at the end of the release.)


Friends of the Stewartstown Railroad, Inc.
A Pennsylvania non-stock not-for-profit organization.
Tax-exempt under section 501(c)(3) of the Internal Revenue Code.
P.O. Box 456
Stewartstown, Pennsylvania 17363-0456
(717) 654-7530
We’re on the web at: http://www.stewartstownrailroad.com

FOR IMMEDIATE RELEASE
December 3, 2009

NEW CHALLENGES FOR STEWARTSTOWN RAILROAD

The Stewartstown Railroad: Can it make the transition from one man’s mission to a viable heritage tourism railway? Or will this unique, quaint piece of York County’s history go the way of so many other small businesses? Amazingly, that decision seems to be in the hands of a historical society in Bucks County Pennsylvania. And their answer appears to be, “show us the money now!” Is it possible, a historical society that doesn’t care about history outside of its own jurisdictional boundaries? An organization intent on its own agenda without consideration of the collateral damage to other equally worthy preservation efforts.

While it served the transportation needs of many agricultural and business concerns in rural southern York County from 1885 through the early 1990s, the Stewartstown Railroad now finds itself in, if not the first, perhaps the toughest fight for survival it has ever faced. Having survived the Great Depression, the onslaught of the automobile and truck, the wrath of Hurricane Agnes in 1972, the financial collapse of the Penn Central (which was its connection to the outside world) and the twelve years of inactivity that followed, it is now at the mercy of a distant historical society apparently unwilling to see the diamond in the rough the railroad’s hometown supporters can envision so clearly.

Why the fight to save this small, yet nonetheless significant, piece of York County history? The Stewartstown Railroad may well be the very last of its kind in the Commonwealth and perhaps the entire country. And that kind is the “farmer's railroad.” These operations, built by and for the lineside farming communities, were the lifeline that enabled the farmer’s products to reach the city markets efficiently and economically. They connected hamlets and villages bypassed by the likes of the Pennsylvania Railroad and other famous names now consigned to the history books. They did so with the lightest of rails and the smallest of locomotives. They were kept running by the practical know how and conservative common sense of the farmers and local businessmen who owned them. Indeed, save for the fact that steel wheels ran on steel rails, operations of this sort represent a stark contrast to the more well known traditional history of railroading.

To this day, the Stewartstown remains completely intact, its entire original mileage lies ready to be restored to operation and it remains in business under its original charter of 1884. Recent research has documented that the Stewartstown Railroad is, in fact, the single oldest surviving American railroad corporate entity in existence today, never having been merged with another railroad, sold or been subject to any form of corporate reorganization. All seven significant railroad structures along the 7.4 mile line has been listed on the National Register of Historic Places. The entire railroad itself was deemed eligible for listing on the National Register in 1997 and efforts are now underway to complete that nomination. The railroad’s physical plant has not been significantly modernized since 1914. The Stewartstown Railroad is not merely a “trip back in time” recreated as an amusement. This is the real thing, a living piece of York County history, as it stubbornly clings to life in a world fast being overrun by suburban housing developments and shopping malls.

Beginning in the late 1980s, after the railroad resumed local freight service in the wake of Hurricane Agnes, it also began seasonal passenger excursions. These excursions, particularly the Christmas and Easter specials, along with the Haunted Train specials operated for the Stewartstown Lion's Club, were resounding successes for the company and also the community, helping to generate significant business for local restaurants and other attractions. Previous management let legendary rail historian George Hart, as the President of the company and its largest shareholder, conduct business as he saw fit. And while his financial generosity enabled the company to continue in operation, it also indebted the company to him and discouraged attempts to guide the railroad back towards the path of self-sufficiency. Despite concerns from some company officials at the time, the company agreed to acknowledge his contributions as a lien. Prior to his death, it was widely believed that Mr. Hart had made arrangements for the debts to be forgiven following his passing. Regrettably those arrangements were never made and that lien has now passed to Mr. Hart’s estate and will soon be turned-over to the Bucks County Historical Society. The BCHS has thus far refused to even meet with Stewartstown Railroad officials to consider the railroad’s plight or to recognize the historical significance of this unique property.

The situation is critical and the time for action is now. Since Mr. Hart’s passing, the Board of Directors has been reassembled and steps have been taken to improve the management of the Company’s business affairs. A detailed market research study and a viable business plan to return the line to operating status have been prepared. Repairs have been started on the station in Stewartstown, the locomotives have received maintenance, the line has been opened for motor cars (small inspection vehicles sometimes referred to as “speeders”), plans have been made to repair washouts, and track material is being accumulated to rebuild the track and resume operations. Decades worth of debris is being cleaned up and historic records are being archived and organized. Open houses and other activities are capturing the imagination of local citizens and creating interest from a new generation of volunteers. And yet, it may be too late. If the Bucks County Historical Society insists on immediate payment of the $350,000 lien, the only way to accomplish this is to substantially liquidate the railroad. Unfortunately, presently the Stewartstown Railroad is worth more dead than alive. While supporters are making contributions through the Friends, there is no consistent income stream to justify a bank loan and income generating operations are still a year or more away.

What is the solution? The railroad that was so much of Mr. Hart’s life (and which he inexplicably abandoned after 35 years of stewardship even as he led its decline) has enough liquidation value to ensure that Bucks County Historical Society’s lien is not at risk. If Bucks County Historical Society can be convinced to forego payment for several years, the Friends feel that the Stewartstown Railroad can be rejuvenated and turned into a self-sustaining operation that can support a loan or other arrangement for the repayment of the lien.

Please contact the Bucks County Historical Society and ask them to consider meeting with and cooperating with the Stewartstown Railroad and the Friends to try and preserve and maintain this small jewel of railroading. The Bucks County Historical Society's address is 84 South Pine Street, Doylestown, PA 18901-4999, their telephone number is 215-345-0210 and their email address is info@mercermuseum.org.

The Friends of the Stewartstown Railroad, Inc. is a 501(c)(3) non-profit corporation
created to preserve the historic Stewartstown Railroad. Correspondence and questions regarding this news release may be addressed to the
Friends of the Stewartstown Railroad, Inc.
P.O. Box 456
Stewartstown, Pennsylvania 17363
(717) 654-7530

For further historical background on the Stewartstown Railroad, please visit
http://www.stewartstownrailroad.com or see the books The Story of the Stewartstown Railroad, available from the Baltimore Chapter of the National Railway Historical Society, and Steel Rails to Stewartstown, available from the Friends.
The Friends would like to acknowledge the dedicated support of the Stewartstown Historical Society, also a 501(c)(3) non-profit corporation, and their contributions to preserving the Stewartstown Railroad.

I've sent a letter & hope others do the same. In fact, since Doylestown is not far away, I'll head up there & personally (and politely) express my feelings.

I joined friends of the Stewartstown a few months ago. I'll send a letter to the folds in Bucks County. The folks at Stewartstown need to get organized and build broad support. I hope they can do so.

I don't understand. This sounds very unusual for a lien to be given to an historical society. Did the HS give anything to Mr. Hart's estate in exchange for the lien? What is the back story to this transaction?

From what I understand, George Hart owned the railroad (or a controlling portion) but it was still an independent company. He loaned the railroad a large sum of money (350K?). He left most or all of his estate to the Bucks County Historical Society. This included an I-owe-U from the railroad for said loans. The folks in Bucks see the note as hard cash that has fallen out of the sky and want to cash out the note.

On the one hand, the Bucks historical society has a fiduciary responsibility to the society (hey, it's not THEIR fault Hart didn't properly attend to his financial desires, if he wanted to absolve the debt or whatever).......

On the other hand, it IS a society supposedly dedicated to the preservation of history. Should they not have an obligation to work with fellow preservationists of history to ensure the preservation thereof?

If negotiations are proceeding in good faith and on good terms--that is, the Bucks HS isn't demanding all $350K by Dec. 31st or the Stewartstown Friends aren't demanding automatic dismissal of the entire debt--then it's a matter between those two parties. If Bucks is demanding all monies right away, this would be a choice opportunity for the Friends to unleash a PR campaign (nice expository articles in the Philadelphia Inquirer, Harrisburg Patriot-News, and local papers, of course) exposing the Bucks Co. HS for the "greedy Scrooges" they would thus be acting like.

At the same time, however, we are forced to ask whether the railroad has a prayer in hell of raising that kind of money in any reasonable length of time, plus sustaining itself as either a freight railroad and/or a viable tourist operation. Given the past history of the operation, it seriously looks like a literal replay of the movie The Titfield Thunderbolt, and as charming as such a "country railroad" may be even in preservation, we have to seriously consider the real role such an operation deserves in the 21st century. Absent assumption of the asset responsibilities by York County or the Commonwealth, can this work?

This can be a tough question for that historical society to decide. 350K is a lot of money to further their mission, but it comes at the price of destroying a National Register eligible historic treasure in the process. The Stewartstown Railroad people need to get that National Register nomination done ASAP, and we need to continue sending letters of support to the historical society. Make them aware of the quandary that they are in.

The further sad truth here is that George Hart gave the Bucks County HS his family's estate mansion and huge chunk of land it sat on in Doylestown,Pa. a few years ago. Since his gift, the BCHS has sold much of the very valuable land off to developers who have put up expensive private homes. I'm not sure of the total value of that gift but it certainly was in the millions.

The real tradegy here is that George left next to nothing in his estate for the thing that was his lifelong passion...railroad preservation and history!!

Unfortunatly, the language in the Will is the ruling factor here and will prevail in the end!!

Very sad but true.

Ross Rowland

Translation: Unless they are guilty of grotesque misappropriation or financial mismanagement, they have money.

Inference: They damn well don't need that $350K any time really soon.

Okay. NOW I'm informed enough to write that letter.

Language in a will is not the final word. Remember the college in Philadelphia that was supposed to be for underpriveleged white children? That was challenged in court ad the will overturned. There is only one guarantee in life; we are all going to die.

Later!
Mr. Ed

One additional note: The Stewartstown Railroad is holding "open houses" at its station in Stewartstown on two consecutive Saturdays, December 12 and 19, 2009, from 1:00 p.m. to 5:00 p.m. The open houses are being hosted by the Friends of the Stewartstown Railroad, Inc.

And to further clarify: The Stewartstown Railroad is owned by the Stewartstown Railroad Company, a closely-held stockholder-owned corporation. The four coaches on the Stewartstown Railroad property were George Hart's personal property and are now part of his estate. The Friends of the Stewartstown Railroad, Inc., is a non-profit, 501(c)(3) tax-exempt membership organization dedicated to help preserve the railroad. The Friends has submitted an offer to the estate to acquire one or more of the coaches.

Ray Reter
VP/Secretary, Friends of the Stewartstown Railroad, Inc.
Member of the Board, Stewartstown Railroad Company

Update from today's Intelligencer (Bucks County), which takes away some possible speculation unfortunately:

http://www.phillyburbs.com/news/local/t ... -back.html


More at the article.

I can't get the story to load. It's so sad that a historic society is so greedy that they will destroy history for cold cash.

From the story it appears that the HS doesn't have a say in this. The executor of the estate is required to obtain this money as part of fulfilling the requirements of the will.

Here is the pertinent quote:

"The historical society is the residual beneficiary in Hart's will, meaning it gets everything that isn't specifically set aside for someone else, including the lien. A third-party executor is responsible for collecting the lien payment, not the society, said James Gillotti, the Lackawanna County attorney overseeing the will's settlement. The railroad has been given until Jan. 30 to repay its debts - a reasonable timeline, Gillotti said, considering it's had since Hart's death in April 2008 to make the necessary arrangements.

The Bucks County Historical Society could theoretically influence if or when the lien was paid, "but that would be very unusual," he said. "That's just not the way things work."

So lets see, the future of the Southern Michigan Railroad is uncertain, the Stewartstown Railroad is going to be liquidated. There are painful lessons here to learn. Don't let your railroad fall victim to what is trying to kill off these operations.

On a positive note, the Bucks County Historical Society is now saying they are willing to listen to the railroad's proposal. That wasn't the case just a couple of months ago in September.