Railroads: Rolling the Permian Basin

The going has been so rugged for U.S. railroads that the Government has not authorized the building of an all-new road since 1924. And that one, the Wenatchee in Washington State, never got off the planning boards. But last week the Permian Basin Railroad Co. of Odessa, Texas, announced that it will begin construction in the spring and hopes to open track from Odessa to Seagraves, Texas, by early 1970. Construction costs will be a modest $9,000,000 because the all-freight Permian Basin will be only 78 miles long.

Every mile has been bitterly contested. Incorporated in 1960 by businessmen in and around Odessa, the Permian Basin petitioned the ICC in 1963 for approval to begin construction. Backers argued that their road would provide vital services for farmers and merchants in lonely West Texas. They argued that the line would show profits in only five years by hauling grain, sugar beets, iron ore, oil, castor beans, peaches, potatoes and cotton to Odessa and Seagraves for transshipment to major markets.

An ICC examiner refused the petition, but the Commission itself overruled him. Said the ICC: "If those most directly concerned are willing to risk their capital with full knowledge of all relevant circumstances, the Commission should be reluctant to deny them an opportunity to improve the economy of their area." The Texas & Pacific Rail way, which carries freight out of Odessa, and wanted no new competition, appealed the ICC decision. The Santa Fe, which stops at Seagraves, joined the appeal. Last week the Supreme Court ruled for the Permian Basin.

The road's jubilant backers are already busy blueprinting operations. At first, the Permian Basin will use three or four rented diesels on a single track. It will connect with the Santa Fe at Seagraves, with the T & P at Odessa, and along the way make stops at Andrews (pop. 11,000) and Seminole (pop. 6,000). It will have only 50 employees, but it will be highly automated. The founders are confident that it will not only make money hauling commodities out of the area, but more important, attract new industry.