Why do people keep blaming Norfolk Southern for the East Palestine derailment?! The most common irrational explanation stems from he notion that Norfolk Southern's lack of good safety practices had something to do with the derailment. Since most people don't understand mechanical failures of railcar journal boxes, it's easy to dismiss the truth that a failed wheel bearing caused the derailment. We know that the nature of mechanics is that mechanical failures are inevitable. It's much easier believe "cooperate greed" or "unsafe corporate culture " or "opposing common sense railway legislation" for what is actually a mechanical failure. Blaming a mechanical failure of a wheel bearing on Norfolk Southern is standard in the mass media and now passed to Ancora Holdings in the name of horse crap, cheap politics.
Ancora Holdings is described as an "activist" investment firm that sank $1 billion into Norfolk Southern for the purpose of taking it over. We often wondered what the shareholders and investors thought of Alan Shaw and the current board's efforts to "make it right" in East Palestine. "Making it right" included remodeling the village's park with soccer fields, basketball courts, swimming pools, and an outdoor stage-amphitheater, a $25 million gift to a village of 5,000 people. Well. maybe it pissed off some shareholders and investors?!
No, apparently not, or at least Ancora isn't telling anyone. Ancora does not tell us just what a better response to the aftermath of the East Palestine derailment should have looked like. Ancora does argue that "poor corporate governance" and "poor safety practices" led to the derailment in East Palestine. The investment firm claims that Norfolk Southern's response to the East Palestine community as a "tone-deaf crisis response," along with "underperforming" and "shrinking margins." "Tone deaf" to exactly what?!
"Calling NS’s response to East Palestine “tone-deaf” is ridiculous, unfair, unnecessary, thoroughly irresponsible and harmful to the railway industry. Leave it out of the discussion, unless you (Ancora) have what you think is a better response. The slide below from the “The Case for Leadership, Safety and Strategy Changes at Norfolk Southern” quoting social media posts from politicians promotes pure political horse manure. It’s meaningless, mean-spirited nonsense..." William C. Vantuono
Ancora Holdings needs to stick to advocacy for the interests of investors and shareholders. Norfolk Southern has done a commendable job in Making it Right in East Palestine and has done so probably knowing that the cause was a failed wheel bearing and not negligence. If there is a case for better governance of Norfolk Southern based on what matters to shareholders and investors, larger dividends, a better CEO, board, than that is their argument. It has proposed a lot of former CSX people as candidates (railroad experienced people). These folks have a lot of experience and expertise to bring from their former positions to NS if they are successful in their election to NS's Board of Directors. The irrational cause of the East Palestine derailment and NS's response have nothing to do with Alan Shaw's actual governance and being an alleged "incompetent, 30-year insider."
Is it "corporate greed" or "corporate mismanagement?" Two very different interests, Ancora Holdings and far left socialists, are claiming two different "reasons" for the East Palestine derailment. So, is it "corporate greed?" "Profits over people?" Is it "corporate mismanagement?" Is it "opposing common sense railway legislation?" What caused that mechanical failure of a railcar journal box?!
This should show us how irrational it is to blame Norfolk Southern for the mechanical failure of a wheel bearing, journal box.
Ancora Holdings needs to stick to addressing what it sees as NS's "underperformance." and "shrinking margins" and drop the East Palestine propaganda.
Let's hope that shareholders vote for the best choices for Norfolk Southern...they probably will.
See Ancora's site Move NSC Forward for more reading.
Read Norfolk Southern's reply...Norfolk Southern statement on board of directors nominations.
Articles used here:
Investor group nominates new leaders for Norfolk Southern. Ismeta Mujdragic. Investing.com Feb. 20, 2024.
Investor Group Announces Slate of Highly Qualified, Independent Director Candidates and Proposed Management Team for Norfolk Southern Corporation. Business Wire, Fed. 20, 2024.
Ancora Accelerates NS Takeover Attempt (Updated). William C. Vantuono. Railway Age. Feb 20, 2024.
Activist investor seeks to install former UPS president to run Norfolk Southern (updated). Trains! David Lassen. Feb. 20, 2024.
