CSX Fined $298,000

efin98 wrote:There is such a thing, the myth that "any publicity is good publicity" is just that- a myth. Bad publicity hurt a hell of alot more than it helps,especially for a for-profit publically traded company like CSXT.

You are still under the impression consignees care that CSX was fined. They don't. That makes no difference to customers--I'll wager few of them even know it happened.

It could happen, and has happened in the past to other companies who had alot of bad publicity- especially ones involving safety. It was already stated by another person that the money takes away from the company, and the additional revenues lost through the bad publicity will only multiply those losses. Just watch the stocks on the company, the people in charge sure are.

I know, Norfolk Southern has declared bankruptcy and laid off thousands due to that incident in South Carolina.

Face it--CSX's customers will only care if their rates go up, which won't happen, either.

That $ 300,000 fine is bound to get the CSX bigwigs attention, which will put the heat on the bosses in charge of the department that got smacked. However the way it works is, CSX will send their lawyers up to Washington and plea the fine down to 40 or 50 grand. One of the many loop holes the railroads have to get around the FRA fine structure. This time it is possible due to all the trouble CSX management seems to involve it self in, particularly systemic 15 to 20% under maintained infrastructure, the plea down may fall on deaf ears. BTW this is NO reflection on the capabilities of CSX rank and file employees. As we are well aware it costs BIG bucks to maintain a system as huge as CSX in a state of good repair. Wall street has put heavy pressure on the current CSX management to produce profits and I believe they are going down the wrong road under maintaining the fixed plant.

Zeke wrote:That $ 300,000 fine is bound to get the CSX bigwigs attention, which will put the heat on the bosses in charge of the department that got smacked.

look into how much Snow and other CSX officials's "golden parachutes" cost the company

then get back to me...

you have absolutely no idea about monetary effects on large companies apparently

crazy_nip wrote:look into how much Snow and other CSX officials's "golden parachutes" cost the company

then get back to me...

you have absolutely no idea about monetary effects on large companies apparently

You think a nearly $300,000 fine will go unheeded by upper management?

Unfortunately yes, some mid/lower level magt may/will get their seats realligned, but like Nip stated earlier, it's pocket change for a company this size. It's actually cheaper to pay the fines and continue on than institute major changes. To the shareholders and exec.s, it's all about the bottomline.

roadster wrote:Unfortunately yes, some mid/lower level magt may/will get their seats realligned, but like Nip stated earlier, it's pocket change for a company this size. It's actually cheaper to pay the fines and continue on than institute major changes. To the shareholders and exec.s, it's all about the bottomline.

You see stats on how much money CSX makes and then you make a subjective assertion like "that's pocket change." That's an opinion! $300,000 is not chump change to any company large or small when it's a fine. If you honestly feel that CSX's (or any other company's brass) doesn't care about this, you're simply mistaken.

Sorry if I sound like I'm flaming, but I'm not trying to do so. If this was nearly $300,000 spent on a golden parachute or some pie-in-the-sky management project, it would be looked at differently--but when it's a fine and the company outright loses that money, everyone takes notice.

to put things in perspective since you are too lazy to look it up...

John Snow got 15 MILLION in severance when he left CSX...

you just have no idea how much money gets thrown around in big corporations...

apparently less than no idea

300 grand wouldnt buy a corporate luncheon

crazy_nip wrote:to put things in perspective since you are too lazy to look it up...

John Snow got 15 MILLION in severance when he left CSX...

you just have no idea how much money gets thrown around in big corporations...

apparently less than no idea

300 grand wouldnt buy a corporate luncheon

You keep comparing two arbitrary numbers and formulate a very subjective opinion based on that.

The company budgeted his pension. They did not expect a sudden $300,000 fine (well, not in enough to time to compensate for it more than likely). It has to come out of someone's budget, and if you think that upper management takes $300,000 lightly, it's obvious you lack any knowledge of how [any] business operates. No matter what you compare it too, 300 grand is not chump change. Sorry.

Avro Arrow, I'm curious about something. You've characterized Roadster's comment as "a subjective assertion" and Crazy-nip's comment as "a very subjective opinion." I was wondering if your comments on the fine issue have also been offered as subjective opinions, or do you have some special insight into CSXT that should cause us to afford particular weight to the thoughts that you've expressed?

roadster's assertion is an opinion and nothing else

my statement about John Snow's severance is a FACT

you can argue about semantics all day, I stand by what I said

Jay Potter wrote:Avro Arrow, I'm curious about something. You've characterized Roadster's comment as "a subjective assertion" and Crazy-nip's comment as "a very subjective opinion." I was wondering if your comments on the fine issue have also been offered as subjective opinions, or do you have some special insight into CSXT that should cause us to afford particular weight to the thoughts that you've expressed?

What do I know, I only work for a railroad (and other industries). I've seen firsthand how much difference $300,000 makes to any department when it is not budgeted. Assuming CSX isn't able to bargain the fine down, that means it will be coming out of someone's budget.

Is that unrealistic, or does it just not match your [flawed] view that companies are rolling in money and they all have a huge vault where they can go swimmming in their sea of gold coins like Scrooge McDuck?

crazy_nip wrote:roadster's assertion is an opinion and nothing else

my statement about John Snow's severance is a FACT

you can argue about semantics all day, I stand by what I said

I never said it wasn't a fact. I don't doubt you at all. But the two numbers have no correlation to each other other than the fact they are dollar amounts. The big difference is that Snow's golden parachute was planned for, whereas a $300K fine wasn't. If you think CSX is just going to write that much off as an "unfortunate event" and move on, your're just wrong. $300 grand will have to come for somewhere, and it's not going to be from the railroad's Magic Money Machine.

Nip you are 100% correct I have no idea about monetary effects on large companies, however I have an idea about monetary effects on large RAILROAD companies working 35 years and counting on four Railroads. What you are failing to realize is ANY large FRA fine imposed on ANY railroad gets the attention of top management for several reasons, one is they do not like bad publicity, number two the outside lawyers who sue railroads on a regular basis for a host of reasons point to that fine as evidence of willful disregard, also it casts doubt on railroad managerial capabilities to interested parties such as board members, shareholders, shippers etc. This sets a chain of events in motion that usually result in the HEAT being applied from the top to the particular Railroad department ( C & S, T & E, Track, M of E etc ) the fine was directed to, up to and including terminating the manager or rank and file employees involved in the classic railroad game of passing the buck. Now I do not for one second think that CSX is going to mend it's ways any time soon, but I do know that the FED/GOV is getting tired of endless spectacular Railroad accidents particularly after NTSB / FRA investigations determine they could have been avoided if proper maintanence procedures were being followed.

Avro Arrow, no I don't think that your comments are "unrealistic"; and I never suggested that they were. My question was whether those comments had been "offered as subjective opinions" or whether you had "some special insight into CSXT". In other words, I'm just sitting out here trying to decide whether--as you seem to think--I should pay closer attention to your comments than I should to the comments, made by others, that you consider to be merely "opinions". So far, at least, I don't see any reason to do that.

You asked about my "(flawed) view that companies are rolling in money". I don't really have a view--"flawed" or otherwise--on that issue. I suppose it depends on the company.

Thanks for the support Nip, by the way Mr. Snows severence was actually 67 million which includes loans from the company which the board forgave.
As far as opion, this info. was drwan from ap news info. at the time Mr.Snow was resigning from CSX for his current Federal position.. If you forgot it was heavily discussed on this forum at the time the Supebowl ticket purchases were announced and debated, also, not to mention UTU and BLE sites. "Judge lest ye be Judged", you have no idea where I have received my info and visa versa. If you have facts please state the source. If not it's all opinion which most of this thread is including your assumptions.
As far as 300K, being important to this company. This company spent over 7 million on superbowl tickets, suites, and the like to impress customer excec,s, and various company officals. I can see this tread turning into a battle of oppinions and there isn't going to be a satisfied response from anybody. Since I have been judged to be offering only oppinions I have stated mine, Good luck to the rest of you, hope you find the answers your searching for or open minds to respect others oppinions.

Jay Potter wrote:Avro Arrow, no I don't think that your comments are "unrealistic"; and I never suggested that they were. My question was whether those comments had been "offered as subjective opinions" or whether you had "some special insight into CSXT". In other words, I'm just sitting out here trying to decide whether--as you seem to think--I should pay closer attention to your comments than I should to the comments, made by others, that you consider to be merely "opinions". So far, at least, I don't see any reason to do that.

You asked about my "(flawed) view that companies are rolling in money". I don't really have a view--"flawed" or otherwise--on that issue. I suppose it depends on the company.

Enjoy being wrong, Zeke pretty much nailed it.

roadster wrote:Thanks for the support Nip, by the way Mr. Snows severence was actually 67 million which includes loans from the company which the board forgave.
As far as opion, this info. was drwan from ap news info. at the time Mr.Snow was resigning from CSX for his current Federal position.. If you forgot it was heavily discussed on this forum at the time the Supebowl ticket purchases were announced and debated, also, not to mention UTU and BLE sites. "Judge lest ye be Judged", you have no idea where I have received my info and visa versa. If you have facts please state the source. If not it's all opinion which most of this thread is including your assumptions.
As far as 300K, being important to this company. This company spent over 7 million on superbowl tickets, suites, and the like to impress customer excec,s, and various company officals. I can see this tread turning into a battle of oppinions and there isn't going to be a satisfied response from anybody. Since I have been judged to be offering only oppinions I have stated mine, Good luck to the rest of you, hope you find the answers your searching for or open minds to respect others oppinions.

Still, what do superbowl tickets and a boar member's pension plan have in common with a fine?