NEIL: GARRETT TENNEY, THANK YOU
FOR THAT.
MEANTIME HERE A NUMBER OF
RESIDENTS OF EAST PALESTINE HAVE
BEEN OFFERED 1000-DOLLAR CHECKS
TO HELP COMPENSATE THEM FOR ANY
DISLOCATIONS GOING ON.
MICHAEL O’SHEA, A LAWYER
REPRESENTING MANY OF THOSE
RESIDENTS.
HE SAID DON’T BE SO QUICK TO
TAKE THE CHECKS.
HE IS A LEO GROUP PRINCIPAL AND
OWNER.
MICHAEL, GOOD TO HAVE YOU.
CAN YOU TELL US A LITTLE BIT
ABOUT THE CHECKS NORFOLK
SOUTHERN IS OFFERING?
>> I APOLOGIZE AT FIRST GLANCE.
I’M COMING IN THROUGH MY iPAD
I TRY TO ASSIST YOU GUYS ON.
NEIL: THAT’S OKAY.
>> WE’RE BOOTS ON THE GROUND.
WE’RE OUT HERE RIGHT NOW.
SO, BUT THE BIG CONCERN THAT
WE’RE HAVING, THANK YOU FOR
GETTING THIS OUT TO YOUR
LISTENERS, IS THAT THE ACCEPT
TANS OF THIS, THEY’RE
ESSENTIALLY OFFERING TWO TYPES
OF FEES.
ONE WE WOULD CALL REIMBURSEMENT
FEE WHICH NORFOLK AND SOUTHERN
CLAIMS THEY WILL GIVE TO PEOPLE
WITHIN ONE MILE RADIUS FOR
HOTELS, OTHER TYPES OF
NECESSITIES IMMEDIATELY AFTER
THE EVACUATION.
THE SECOND IS THIS THING CALLED
INCONVENIENCE FEE, STANDARD
1000-DOLLAR PER PERSON CHECK.
WE’RE SUGGESTING TO FOLKS THAT
CAN AFFORD, WE RECOGNIZE SOME
CANNOT, THAT THEY DON’T ACCEPT
THAT, EITHER OF THOSE TWO FEES
BECAUSE IT MIGHT BE ARGUED LATER
AS A SETTLEMENT OF ANY CLAIM
THAT THEY HAVE PAST, PRESENT FOR
FUTURE AGAINST THE RAILROAD FOR
WHAT THEY DID HERE.
WE HAVE A LITTLE HISTORY HERE.
BACK IN 2005 THEY HAD A, YOU
KNOW A RAILROAD ACCIDENT WHERE
THEY WENT AROUND OFFERING WHAT I
WOULD CALL DANGLE MONEY, TRICKLE
MONEY TO FOLKS.
THEY TOOK IT, LATER ARGUED THAT
FOLKS SETTLED THEIR CLAIMS.
WE WANT TO GET OUT THE WORD TO
FOLKS, DO NOT, IF YOU CAN AFFORD
IT EMPHASIZING IF YOU CAN AFFORD
IT, DO NOT TAKE THIS UP FRONT
MONEY.
BUT IF YOU DO, YOU KNOW BE AWARE
THESE FOLKS MIGHT ARGUE LATER
THAT, THAT THIS IS PAYMENT IN
FULL.
I WILL TELL YOU THAT I WAS ON
THE PHONE YESTERDAY WITH A
LAWYER FOR MORE NORFOLK AND
SOUTHERN WE PREPARED A DOCUMENT
MEMORIALIZED THE PRESS RELEASES
SENDING OUT TO EVERYBODY, THIS
IS NOT PAYMENT IN FULL,
COMPROMISE FOR ANY CLAIMS.
THANK YOU, GOOD.
CAN YOU SIGN THE AGREEMENT THAT
BASICALLY RATIFIES WHAT YOUR
PUBLIC RELATIONS FOLKS ARE
SAYING?
THEY SAID THEY WOULD NOT.
THAT GOT OUR SPIDEY SENSE IF I
CAN USE THAT TERM, MORE TINGLING
WHAT IS GOING ON.
THAT IS WHERE WE ARE RIGHT NOW.
NEIL: THERE IS NOTHING WRITTEN
OR ATTACHED TO ANY OF THESE
CHECKS, MICHAEL, ALL RIGHT, IF
YOU ACCEPT THIS ANY FURTHER EVEN
UP TO LITIGATION CANNOT BE
CONSIDERED AGAINST NORFOLK
SOUTHERN THAT WE KNOW OF?
>> THAT WE KNOW OF.
SOME FOLKS IN ORDER TO, WOULD
COMBINE CHECKS REIMBURSEMENT AND
INCONVENIENCE FEE IN ONE CHECK.
THEY HAD TO FILL OUT A FORM.
WE’LL TALK ABOUT THE W 9 ISSUE
IN A SECOND.
NEIL: OKAY.
>> THAT CLAIM THEY HAD TO SIGN.
I GAVE THE EXAMPLE OF THE OTHER
DAY IF SOMEBODY BACKS INTO YOUR
CAR, GET OUT SAY I’M SORRY, GIVE
YOU $100 CASH, TAKE IT, PUT IT
IN YOUR POCKET, GO BACK TO THE
REPAIR SHOP, THE REPAIR SHOP
GUY, IT WILL BE $800 TO FIX THE
CAR, YOU GO BACK TO THAT PERSON
THAT GAVE YOU THE 100 BUCKS,
THEY SAY NO, COURT AND
SATISFACTION.
I GAVE YOU 100 BUCKS, YOU
ACCEPTED IT, PUT IT IN YOUR
POCKET.
YOU CAN’T COME AFTER ME, SAY IN
THAT EXAMPLE 700 BUCKS.
NEIL: DO WE KNOW MICHAEL,
WHETHER NORFOLK OR
REPRESENTATIVE FROM NORFOLK WILL
BE IN ATTENDANCE AT THIS MEETING
TO NIGHT WITH RESIDENTS?
>> NO IDEA IF THEY’RE GOING TO
BE THERE.
I KNOW THAT WE ARE GOING TO BE
DOWN THE STREET DOING OUR OWN
ANSWER AND QUESTION PRESENTATION
WITH A NATIONWIDE LAW FIRM,
MOTLEY RICE.
THERE IT IS, YOU GOT THE FLYER.
WE ANSWER A BUNCH OF FOLKS
QUESTIONS.
THEY REACHED OUT TO US, MAKE IT
CLEAR TO THEM WE’RE HERE TO
HELP.
THAT REIMBURSEMENT AGREEMENT WE
PUT ON THE WEBSITE, WHETHER OUR
CLIENTS OR NOT, PROTECT ANYBODY
THAT MIGHT BE AT RISK.
NEIL: HOW MANY CLIENTS, MICHAEL,
WHO ARE RESIDENTS, YOU LINED UP
OR ARE REPRESENTING IN THIS?
>> I WOULD SAY AT LAST COUNT
WE’RE UP TO SOMEWHERE 35, 45, WE
CATEGORIZE THEM AS FAMILY
CLAIMS.
SOME HOUSEHOLDS HAVE FIVE OR SIX
PEOPLE LIVING IN THEM AND SOME
OF THEM ARE ADULTS, SOME ARE
KIDS.
SO IT IS HARD TO DO THE TALLY
RIGHT NOW.
NEIL: SO ANOTHER THING THE
COMPANY CLAIMED AT LEAST THE
TOWN CLAIMED ALL THE WAY UP TO
THE GOVERNOR CLAIMED THEY
EXAMINED AND STUDIED AIR, THE
ENVIRONMENT RIGHT AROUND THAT
ONE MILE RADIOS AND THAT IT’S
FINE.
THAT THERE IS NO ANOMALIES GOING
ON, NOTHING DANGEROUS TO REPORT
YET AGAIN.
THAT SEEMED TO BE RESTRICTED
AROUND THE ONE MILE AREA WHICH
THIS FIRST OCCURRED.
OBVIOUSLY THAT IS SUBJECT TO
CHANGE.
WE LEARNED FROM 9/11 AND
DOWNTOWN NEW YORK THAT IT MOST
DRAMATICALLY CHANGES BUT WHAT IS
YOUR SENSE OF WHAT THE OFFICIALS
SO FAR ARE SAYING, THAT LOOKS
WORSE THAN IT IS?
>> WELL, OPTICS CAN BE VERY
DECEIVING WHEN IT COMES TO TOXIC
CHEMICALS AND STUFF LIKE THAT.
LET ME TELL YOU THIS, YEARS AGO
WE REPRESENTED A BUNCH OF POOR
WORKERS FROM A PLANT IN OHIO
HERE CALLED GEN CORP., THAT
PRODUCED VINYL CHLORIDE.
IT HAS A SWEET CANDY LIKE SMELL
TO IT.
IF YOU WERE SMELLING IT AND
WORKING WITH IT, NOBODY, THE CAN
BE KNEW ABOUT IT BUT THE WORKERS
SURE DIDN’T, THAT IT IS
BASICALLY CAUSING YOUR BODY
SERIOUS HARM, WHICH I HAVE TO
EMPHASIZE, OFTEN DOESN’T MATURE,
THE INJURY FOR STEAMS 10 OR 15
YEARS.
IT HAS A LATENCY PERIOD TO IT.
NEIL: RIGHT.
>> IT COULD LAST A LONG TIME.
SO THERE IS NO WAY THAT THEY CAN
ASSESS BOTTOMED DILLY INJURY
FACTORS AT THIS TIME.
THERE IS JUST NO WAY.
LET ME TELL YOU THIS, THE SECOND
MOST IMPORTANT CATEGORY OF
DAMAGES THAT OUR CLIENTS ARE
EXPERIENCING WHAT WE CALL
PROPERTY LOSS.
I SPOKE TO A POOR WOMAN THE
OTHER DAY, ONE OF OUR CLIENTS,
WHO RUNS A BED AND BREAKFAST UP
THERE, SERVE BREAD AND BUTTER IF
YOU WILL AND SHE IS NOT GETTING
ANY BOOKINGS FOR THE INDEFINITE
FUTURE.
CERTAINLY NOT NOW.
I SPOKE TO A BOMB WHO HAD HER
HOUSE LISTED FOR SALE BEFORE THE
ACCIDENT.
LOOKING FOR A TARGET PRICE OF
100 GRAND.
NO ONE IS MAKING A OFFER ON HER
HOUSE NOW.
I TALKED TO A FARMER, EASTERN
AREA OF THAT EAST PALESTINE AREA
OVER 100 YEARS.
NO ONE IS GOING TO BUY MY CROPS
ABOUT THEY KNOW THEY COME FROM
EAST PALESTINE, THINK ABOUT IT.
THOSE PEOPLE REGARDLESS OF
BOTTOMED DILLY INJURY
MANIFESTATIONS WHICH WE THINK
WILL POP UP IN THE YEARS TO
COME, ONE OF THE MORE IMMEDIATE
DAMAGES TO THESE FOLKS IS THEIR
LIVELIHOOD.
THEIR ABILITY TO LIVE LIKE, THEY
WERE ABLE TO LIVE BEFORE THE
ACCIDENT.
NEIL: YOU KNOW ANOTHER THING THE
COMPANY HAS SAID, I DON’T KNOW
THE LETTER OF THE LAW HERE AS
WELL AS YOU, MICHAEL, IN FACT
NOT EVEN CLOSE, THIS WAS NOT
CLASSIFIED AS A HAZARDOUS
MATERIAL TRAIN BECAUSE ONLY ONE
OF THE CARS WHAT WAS CARRYING
WHAT WOULD BE DEEMED HAZARDOUS
MATERIAL.
SO BY THE RULES OF ALERTING
OFFICIALS AHEAD OF TIME OF
POTENTIALLY HAZARDOUS MATERIAL
TRAIN COMING THEIR WAY THEY WERE
EXONERATED.
THAT IS THE WAY THEY’RE
PRESENTING IT.
IS THAT TRUE?
>> I CAN TELL YOU THIS, I WOULD
BE STUNNED IN NORFOLK AND
SOUTHERN TRIES TO DEFEND THIS ON
WHAT WE CALL LIABILITY GROUNDS.
I BET THEY ALREADY DECIDED TO
THROW IN THE TOWEL FOR PUBLIC
RELATIONS STANDPOINT, THIS IS
OUR FAULT BEING, WE NOKIAED OVER
THE GLASS, WE’LL CLEAN IT UP.
NEIL: I’M SORRY, MICHAEL, DO YOU
KNOW THAT IS THE CASE, THAT THEY
HAVE ESSENTIALLY MOVING BEYOND
THE 1000-DOLLAR SETTLEMENT PER
AMERICAN OR INITIAL PAYCHECK PER
PERSON AND WE’RE INTO THIS MUCH
DIFFERENT WAY?
>> WE KNOW THEY ALREADY NOTIFIED
THE GOVERNMENT, STATE OF OHIO,
WE’LL CLEAN UP THIS MESS F
THEY’RE MAKING THAT COMMITMENT
TO THE STATE OF OHIO I ASSUME
THEY’RE MAKING THE SAME
COMMITMENT TO THE PEOPLE, THE
INDIVIDUALS THAT ARE INJURED.
NEIL: CLEANING UP THAT MESS IS
AT LEAST TENS OF MILLIONS OF
DOLLARS, JUST THE MESS.
I WOULD IMAGINE THIS WOULD BE
CONSIDERABLY HIGHER RIGHT?
>> I DON’T THINK THEY WILL HAVE
A PRICE TAG FOR CLEANUP FOR
MONTHS IF NOT YEARS.
IT IS WAY TOO EARLY TO PUT A
PRICE TAG.
NEIL: WHAT ABOUT THE PEOPLE YOU
REPRESENT JUST AS THEIR LAWYER,
DO YOU ADVISE THEM TO BE OUT OF
TOWN, NOT TO ATTEND THIS MEETING
TONIGHT?
THAT IT IS PHYSICALLY RISKY FOR
THEM TO DO SO?
>> WHAT IS REALLY RISKY MORE
THAN ANYTHING ELSE, PEOPLE THAT
HAVE WELLS FOR WATER, OKAY?
AS OPPOSED TO PIPING.
IT IS ONE OF THE ISSUES THAT HAS
COME UP.
I’M SORRY.
LET ME DO THIS.
I KNOW THIS HAPPENS FROM TIME TO
TIME.
MY PHONE IS RIGGING.
SO WE’RE REALLY WORRIED ABOUT
THAT.
THEY’RE CONTINUING TO DO WHAT WE
ALL AIR QUALITY MONITORING,
STUFF LIKE THAT, BUT THESE
FOLKS, I WANT YOU TO IMAGINE
WHAT YOU KNOW, I WAS UP THERE
LAST WEDNESDAY, TO GIVE YOU AN
EXAMPLE AND I WAS DRIVING
THROUGH TOWN.
I WAS TRYING TO MAKE MY WAY TO A
MEETING WE WERE GOING TO HAVE
WITH SOME OF THESE FOLKS.
LIKE THESE PICTURES ARE SHOWING
YOU, THIS ENTIRE TOWN WAS
CORDONED OFF LIKE CONTAGION
MOVIE.
YOU COULDN’T GET INTO CERTAIN
AREAS OF DOWNTOWN I DROVE BY.
ALL BUSINESSES ESSENTIALLY
CLOSED DOWN, QUIET, NO CARS IN
THE PARKING LOT.
ALL YOU SAW WAS GUYS IN FATIGUES
AND STATE TROOPER UNIFORMS AND
STATE DEPUTY SHERIFF UNIFORMS
ALL AROUND, BLOCKING OFF
TRAFFIC, NOT LET ANYBODY GETTING
IN.
THAT IS HOW SCARED THEY WERE
WHAT THE, WHAT THE PROXIMITY
FACTOR WAS HERE.
NEIL: SO FINALLY, WANT TO GET A
HANDLE ON THIS, WHO GAVE THE
GREEN LIGHT FOR EVERYONE TO GO
BACK AFTER THE EXPLOSION AND THE
DELIBERATE BURN, ALL OF THAT?
WAS WAS IT NORFOLK AND DID
NORFOLK TELL LOCAL OFFICIALS UP
TO THE GOVERNOR’S OFFICE, FOR
ALL KNOW THE TRANSPORTATION
DEPARTMENT, FEDERAL
TRANSPORTATION DEPARTMENT FOR
RESIDENTS TO GO BACK?
WHO HAS TO CHECK SOMETHING LIKE
THAT OFF, MICHAEL?
>> I BELIEVE IT IS EITHER THE
FEDERAL EPA OR THE OHIO EPA.
NEIL: OKAY.
>> LOOK IT, THOSE FOLKS DO GREAT
WORK BUT I THINK THERE IS
TREMENDOUS PRESSURE BROUGHT UPON
THEM TO GIVE AND ALL-CLEAR THAT
MAY BE A WAY TOO EARLY
ALL-CLEAR.
NEIL: IT WOULD BE UNUSUAL TO
TAKE IT JUST ON THE ADVICE OF
THE PERPETRATOR OF THIS
ACCIDENT, NOT THAT THIS WAS
SOMETHING DELIBERATE, THIS WAS A
NORFOLK TRAIN THAT WENT OFF THE
RAILS PHYSICALLY AND LITERALLY.
>> I WOULD NEVER TAKE THEIR WORD
FOR IT.
NEIL: TAKE ADVICE JUST FROM THE
COMPANY BEHIND IT?
>> I WOULD NEVER TAKE THE ADVICE
FROM NORFOLK AND SOUTHERN ON
ANYTHING RIGHT NOW.
I’M SORRY IF I’M ANSWERING TOO
GENERICALLY.
NEIL: NO YOU’RE NOT.
PRESCRIBING CALL, I KNOW YOU’RE
BUSINESSES.
THE PHONE IS RINGING.
THANK YOU VERY MUCH, MICHAEL
O’SHEA REPRESENTING A LOT OF
FOLKS REPRESENTED BY THIS QUICK
PEEK AT NORFOLK SOUTHERN STOCK,
AT WORST AFTER THE ACCIDENT, IT
TUMBLED MORE THAN 6%.
REBOUNDING A LITTLE BIT TODAY.
AT OUR LOWS WE WERE DOWN
ADDITIONAL 3% COMING BACK A
LITTLE BIT.
I STRESS A LITTLE BIT.
A LOT OF THIS MIGHT BE BUILT ON
TRANSPORTATION STOCKS IN GENERAL
RESPONDING WELL TO A STRONG
RETAIL SALES REPORT.
THERE IS, THINKING THAT PEOPLE
ARE STILL BUYING STUFF.
THEN THERE’S DEMAND FOR THE
STUFF THAT TRAINS CARRY AND THEY
DON’T ALL CARRY HAZARDOUS
MATERIALS.
THAT COULD EXPLAIN HOW NORFOLK
IS SORT OF HOLDING UP THROUGH