WHY HASN'T DICK DAVIDSON BEEN UNCEREMONIOUSLY FIRED BY NOW?

(1)First, UP Chairman Dick Davidson mangled the C&NW takeover.
(2)Next, he made the SP takeover the laughing-stock of the railroad
industry, and very nearly ruined his entire railroad in the process.
(3)UP cannot run its trains on time; routinely has trains outlaw;
lost a high-speed UPS contract due to "meltdown"; mishandles AMTRAK's
"SUNSET LIMITED" grotesquely on a routine basis; et al.
(4)Finally, from the railfan perspective, his minions recently rejected
my own request to charter #844 or #3985 to run a steam passenger
special over the Rio Grande side from Denver to Glenwood Springs
and return, in October, 2005. I easily solved the Moffat Tunnnel
"steam problem" by suggesting to Steve Lee that a diesel haul the
entire consist (with a simmering steam locomotive) both ways through
the Moffat Tunnel. Yet, UP "management" refused to run ONE TRAIN
nearly a year from now over a secondary route, on the grounds of
"poor liquidity on the railroad." The great builders and past leaders
of the UP are doubtless turning over in their graves at the shambles
that the Davidson regime has made of the railroad. How can this
destructive and incompetent executive still be running the show? UP appears to be spending more time tampering with grade-crossing accident evidence (per a recent NEW YORK TIMES expose) than fixing its sagging product. Any responsible Board of Directors would have tossed
him out on his ear at least a year ago.

DonPevsner wrote:(1)First, UP Chairman Dick Davidson mangled the C&NW takeover.
(2)SP takeover the laughing-stock.
(4)Finally, from the railfan perspective, his minions recently rejected
my own request to charter #844 or #3985 to run a steam passenger
special over the Rio Grande side from Denver to Glenwood Springs
and return, in October, 2005. I easily solved the Moffat Tunnnel
"steam problem" by suggesting to Steve Lee that a diesel haul the
entire consist (with a simmering steam locomotive) both ways through
the Moffat Tunnel. Yet, UP "management" refused to run ONE TRAIN
nearly a year from now over a secondary route

Yes he did a bad job with the SP as well as a CNW take over. Why wouldn't he let them. Did Steve Lee agree or disagree? That is so dumb that they wouldn't allow them to run it on a secondary line. Yes he did a bad job SP with all the issues SP was already the laughing stock of the RR industry. Also I would of fired Davison long time ago. Another thought they only run like 20 Trains a day in the Moffat Line why wouldn't they allow it and if they can't allow it on that line don't run it on the Triple Track in NE.

John

DonPevsner wrote:(1)First, UP Chairman Dick Davidson mangled the C&NW takeover.
(2)Next, he made the SP takeover the laughing-stock of the railroad
industry, and very nearly ruined his entire railroad in the process.
(3)UP cannot run its trains on time; routinely has trains outlaw;
lost a high-speed UPS contract due to "meltdown"; mishandles AMTRAK's
"SUNSET LIMITED" grotesquely on a routine basis; et al.
(4)Finally, from the railfan perspective, his minions recently rejected
my own request to charter #844 or #3985 to run a steam passenger
special over the Rio Grande side from Denver to Glenwood Springs
and return, in October, 2005. I easily solved the Moffat Tunnnel
"steam problem" by suggesting to Steve Lee that a diesel haul the
entire consist (with a simmering steam locomotive) both ways through
the Moffat Tunnel. Yet, UP "management" refused to run ONE TRAIN
nearly a year from now over a secondary route, on the grounds of
"poor liquidity on the railroad." The great builders and past leaders
of the UP are doubtless turning over in their graves at the shambles
that the Davidson regime has made of the railroad. How can this
destructive and incompetent executive still be running the show? UP appears to be spending more time tampering with grade-crossing accident evidence (per a recent NEW YORK TIMES expose) than fixing its sagging product. Any responsible Board of Directors would have tossed
him out on his ear at least a year ago.

I wonder why too. Just reading your post makes me think this guy's off his rocker. I hope he gets fired soon.

DonPevsner wrote:Any responsible Board of Directors would have tossed him out on his ear at least a year ago.

The Board represents the interests of the shareholders. If the shareholders were unhappy with the way things were going, they would insist on a Davidson-free Union Pacific. Apparently, the shareholders are satisfied.

I believe UP management systems are archaic. The response to your request demonstrates that the manager in charge of such things is afraid to make a decision that could come back to haunt him. Look for UP managers to overreact in this way for some time to come.

You guys ever watch/read "Barbarians at the Gate"? It's a book and movie about how F. Ross Johnson ran RJR Nabisco with the sole goal of living a king's lifestyle, flying their German Shepard in the LearJet and have fleets of limos. Moral of the story: Johnson manipulated and bribed the directors to the point that if they fired him, they would lose $500k/year "consulting" contracts and opportunities to play at pro-am golf tourneys with guys like Jack Nicklaus. Sometimes CEO's can instill a big "don't rock the boat" mentality, and it could be likely Davidson has done the same with UP. Just remember, RJR Nabisco gets bought out by Kohlberg Kravis Roberts and Johnson loses his job in the end. KKR is like business purgatory - you don't want to end up there.

LCJ wrote:
The Board represents the interests of the shareholders. If the shareholders were unhappy with the way things were going, they would insist on a Davidson-free Union Pacific. Apparently, the shareholders are satisfied.

I believe UP management systems are archaic. The response to your request demonstrates that the manager in charge of such things is afraid to make a decision that could come back to haunt him. Look for UP managers to overreact in this way for some time to come.

It USED to be that boards represented the interests of the shareholders, but there have been some high profile failures of this system as of late. What's really interesting is a recent lawsuit against the board of Worldcom by a group of shareholders. It's creating quite a buzz in the investment community, and it is hoped that this will get board members to take their responsibilities seriously, and not just rubber-stamp senior management's actions.

UP is no Worldcom, but hopefully their Directors will get some fear put in them by these shareholder rebellions.

I'm suprised the shareholders aren't getting
restless. UP stock underperformerd all of its
rail competitors in 2004. In addition, and
probably more alarmingly for UP, UP lost
market share. According to:

"http://railfax.transmatch.com/"

BNSF actually *overtook* Union Pacific to claim
the No. 1 spot in railroad traffic market share
for the first time in 2004. Intermodal seemed
to be the driver behind BNSF's success - and
UP's failure.

- Ed Kyle

Hmmmm! While intermodal losses are not good, UP is gaining share in other areas, and as a matter of fact, it's capacity is strained at the peak of the container shipping season. All of that aside, lets look at what mangement is judged by.


When a local comes into your terminal, how long before those loaded cars get out on the manifest they are scheduled for? One day? Two? How about in some cases on the West Coast or Texas, a week? Yep. I noted a manifest out of W. Colton, finally departed the yard 5 days after it was originated. And the others for the days following had not moved either. I am talking initial terminal, not a run-through.

Are your local customers current on their car orders? What areas tend to be the worst in returning cars for your customers? West Coast? Texas? Yep. We get empty tanks from New Jersey faster than Roseville, by a week sometimes.

Look at the numbers where incidents like derailments occur more frequently. Does the West Coast and certain Texas locations come to mind?

lastly, Service Unit Superintendants. How come some places always seem to get turn over of Superintendants, and other do not? Performance? High injury or safety rate? High incidence of derailments? Manpower issues? I'll let you guess on this one.


When I see places like North Platte, move tonnage on a timely basis, I wonder why other terminals cannot. Sure, no place is perfect. Chicago at times has prolems shoving trains into or through the terminal. Capacity issues? Yes. Even my small terminal, which has been running at over 85% capacity in the last two years, has had it's share of issues. Yet nothing near what I see when I look elsewhere.

I think Davidson has done well considering. Yes, he has shoved lots of money onto some problems, more than what might be needed. Some areas still need more capacity, and they are getting it. Not all the money spent fixed the problems of local management however. I think the people under Davidson are capable, and seasoned railroad men. However the front line people in certain areas need to find other lines of work where they might be more successful. It has started in some places. But as you all can see, more replacements are needed.

Another factor has been added to the woes. New Hires. Lots of them. So many, that it will take longer for them to get up to speed (from what I have seen of the recent crop, some may never get to the caliber of those retiring). They don't have the mentoring of the old heads they are hired to replace. Think of your company? If your plant or office had 100 new people in six months, how efficient would it be? How many mistakes would they make?

Now on the CNW merger. Yes, it was screwed up. Yet now what is the former CNW properties like? Much progress was made. Lots of investements are being made on new business. And more is yet to come. Attitudes in Omaha changed as well. Yes, some managers there ate crow. Although from what all was said about that time, UP underestimated the property (other than the E/W main). So when that $5 corn wanted to move, UP had no plans in place to meet that need. Now they not only have the plan, but the branch lines are in the best shape they have been in 3 decades. (some like the old Rock Island lines, never saw welded rail or real rock ballast. The main line rail was dated 1905).

Oh well, I got too long winded. But my comments come from conversations and observations inside.

It's easy to look from the outside, and find nothing but failure.

AmtrakFan wrote: Why wouldn't he let them. Did Steve Lee agree or disagree? That is so dumb that they wouldn't allow them to run it on a secondary line.

And I suppose you know why that manager made that decision? Was it capacity? Crew issues?

Also I would of fired Davison long time ago.

On what basis?

Another thought they only run like 20 Trains a day in the Moffat Line why wouldn't they allow it and if they can't allow it on that line don't run it on the Triple Track in NE.

John

What is the difference in capacity on the Overland Route where they have 3 main lines, and a place like Moffat where they may have only one main line? Is the Moffat CTC or dark territory? Are they planning any signifcant MoW projects during that time they wanted 3985 to run? Like replacing curved rail from April to late August? How about the culverts being worked on between May and August. Would that effect capacity? Maybe there are reasons you and I don't see.

RRKen wrote:

AmtrakFan wrote: Why wouldn't he let them. Did Steve Lee agree or disagree? That is so dumb that they wouldn't allow them to run it on a secondary line.

And I suppose you know why that manager made that decision? Was it capacity? Crew issues?

Also I would of fired Davison long time ago.

On what basis?

Another thought they only run like 20 Trains a day in the Moffat Line why wouldn't they allow it and if they can't allow it on that line don't run it on the Triple Track in NE.

John

What is the difference in capacity on the Overland Route where they have 3 main lines, and a place like Moffat where they may have only one main line? Is the Moffat CTC or dark territory? Are they planning any signifcant MoW projects during that time they wanted 3985 to run? Like replacing curved rail from April to late August? How about the culverts being worked on between May and August. Would that effect capacity? Maybe there are reasons you and I don't see.

Ken,
1st off during the Service crisis my Dad had UP Stock so he lost 1/2 of his value in it he got from the SP Merger so after that I have started being anti-Davison plus with his attatiude towards Amtrak I don't really like him
2nd Moffat had thier MOW in 04 I believe it is ABS.

Article today in Salt Lake Tribune:

UP board sued over penalties on safety

AmtrakFan wrote: Ken,
1st off during the Service crisis my Dad had UP Stock so he lost 1/2 of his value in it he got from the SP Merger so after that I have started being anti-Davison plus with his attatiude towards Amtrak I don't really like him

Do you have a basis for not liking him? Is it a railfan thing, or is there some sort of business reasoning?

I bought 250 shares in 1996. Since then, I have not lost, but gained. UNP has closed at or over $60 in most of 2005, reaching $70. The stock did not make $60 but once in 2001. In 2000 it was lucky to make $50. Prior to the CNW merger, UNP was running in highs of $70. I think anyone who has held UNP since 1998 has gained.

This is not to say UP is ok where it sits. It has a lots of areas of opportunity, and is not earning to it's potential. It's growth seems slowed, yet strained for capacity.

2nd Moffat had thier MOW in 04 I believe it is ABS

Oh? They are not laying curved rail this year? Someone forgot to tell gang 9012 as they have already gotten from Prospect to Clifton. How rare!

RRKen wrote:

AmtrakFan wrote: Ken,
1st off during the Service crisis my Dad had UP Stock so he lost 1/2 of his value in it he got from the SP Merger so after that I have started being anti-Davison plus with his attatiude towards Amtrak I don't really like him

Do you have a basis for not liking him? Is it a railfan thing, or is there some sort of business reasoning?

I bought 250 shares in 1996. Since then, I have not lost, but gained. UNP has closed at or over $60 in most of 2005, reaching $70. The stock did not make $60 but once in 2001. In 2000 it was lucky to make $50. Prior to the CNW merger, UNP was running in highs of $70. I think anyone who has held UNP since 1998 has gained.

This is not to say UP is ok where it sits. It has a lots of areas of opportunity, and is not earning to it's potential. It's growth seems slowed, yet strained for capacity.

2nd Moffat had thier MOW in 04 I believe it is ABS

Oh? They are not laying curved rail this year? Someone forgot to tell gang 9012 as they have already gotten from Prospect to Clifton. How rare!

Ken,
This was in 96/97. I don't like him from an aspecet of both reasons.

I do not have to like or dilike ANY member of ANY board in which I hold shares.

I have to make a judgment call decision: Is the stock adding value (and will continue to do so in the future) to my portfolios, or is it causing a paper loss in value?

If I have a paper loss, then I have to make a business decision: Do I sell and convert the paper loss into a capital loss, or do I stay (or even buy)?

Those who know me know I have a small IRA position in UNP. So far, I've stayed the course. I've also been an active participant in corporate governance, voting my shares my way.

John Perkowski

edkyle99 wrote:I'm suprised the shareholders aren't getting
restless. UP stock underperformerd all of its
rail competitors in 2004. In addition, and
probably more alarmingly for UP, UP lost
market share. According to:

"http://railfax.transmatch.com/"

BNSF actually *overtook* Union Pacific to claim
the No. 1 spot in railroad traffic market share
for the first time in 2004. Intermodal seemed
to be the driver behind BNSF's success - and
UP's failure.

- Ed Kyle

I just love it when people who know nothing about RR economics or the actual business side of the industry choose well placed blurbs to try and prove a point. OK, everyone.. lets take a look beyond the sound-byte and take a look at some facts. Follow me here:

** Fact: Intermodal business, while growing is not nearly as profitable for the RR's as other carload traffic. It just isn't. So while growth is good, it's not the most profitable growth. Check the annual reports published by the class I's if you don't believe me. It doesn't take a CPA or MBA to figure them out.

** Fact: Could the UP's sluggish growth in Intermodal business be tied to the West Coast rail ramp strikes during Q1 of last year? How many weeks were the ramps shut down for? Anyone remember? Keep in mind, the UP operates many more ramps in California than the BNSF. Will this negatively impact intermodal business? You bet. Do you think the UP's numbers for 2005 will be affected by the track wash-outs from earlier this year? You bet.

** Fact: Do any of you actually work in the transportation industry? Do you know how many shippers were SCREAMING for equipment during Q4 of 2004? It just wasnt there! Could that have negatively impacted UP earnings? You bet. The situation became so critical that in order to out-gate equipment for loading east-bound movements from the LA Basin, shippers were required to pay up to $500 per container ON TOP OF LINEHAUL RATES for APL Stacktrain and CSXU equipment. For every container available, there were probably 10 loads that needed to be shipped. I think that may have played a part in slowing the UP's intermodal business. Do you agree?

Here are some facts about the wonderful BNSF Intermodal program:

** Fact: The BNSF is withdrawing from all rail-controlled TOFC trailer programs. That's right, they are trying to restrict their intermodal capacity. They will continue to move privately owned trailers.

** Fact: In trying to turn away westbound reloads into the LA Basin the BNSF now hits shippers with massive ramp-storage fees and unrealistic parameters for avoiding these fees.

** Fact: In response to this, the steamship lines who reposition containers into LA for international movements are moving to the UP from the BNSF in select lanes! This will only continue! I know of 2 steamship lines who have already done this.

So before we decide to bash the big bad UP and how horrible they are, lets take a look at the FACTS. And crowing about how wonderful the BNSF Intermodal program is, based on a simple blurb of text is pretty shameful.