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A RESOLUTION ADOPTED BY THE

FIVE-STATE LEGISLATIVE CONFERENCE

RAPID CITY, SOUTH DAKOTA, SEPTEMBER 27-29, 1981

AS AMENDED

RESOLUTION

WHEREAS, certain United States railroads received a total of 128,000,000 acres of federal land to encourage and assist in railroad construction; and

WHEREAS, the total land grants enjoyed by the railroad displace 9.3 percent of the total land area of the United States, exclusive of Alaska and Hawaii; and

WHEREAS, the railroads receiving these land grants built about 18,000 miles of roadway, approximately eight percent of the total railroad mileage of the country; and

WHEREAS, four major western railroads, the Burlington Northern (through the Northern Pacific), the Union Pacific, the Southern Pacific, and the Sante Fe received 88 percent of the 128,000,000 acres; and

WHEREAS, the land grant railroads have retained ownership of some land and much of the mineral rights obtained through said land grants; and

WHEREAS, said land and mineral rights are extremely valuable and they contain farmland, coal, oil, gas, timber, and other resources; and

WHEREAS, the land grant railroads derive significant income from such land and mineral rights; and

WHEREAS, the land grant railroads have also formed holding companies to separate the land, mineral, and natural resource assets from their railroad operations; and

WHEREAS, the railroads (particularly Burlington Northern) have announced intentions to abandon a significant portion of branch line networks in the next few years; and

WHEREAS, rail transportation is vitally necessary to rural states to gather and ship bulk agricultural and other commodities; and

WHEREAS, the abandonment of branch lines will result in a shift in fiscal responsibilities from the private sector to the public sector to maintain a road and highway system;

NOW, THEREFORE, BE IT RESOLVED that the Five-State Legislative Conference and the respective state legislative branches of government in the five member states develop a cooperative effort to influence the retention of a sound railroad network by the land grant railroads and an efficient and economical operation of this system and the benefit of the citizens of those states; and

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Federal
Aid to
Railroads

PART III

Grants of Public Lands to Railroads

Jesse J. Friedman & Associates

Economic Consultants

Washington, D.C.

March 1980

Copyright© 1980
Jesse J. Friedman & Associates

This study was commissioned by
Water Transport Association

and American Waterways Operators, Inc.

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