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2 members of embattled Public Belt Railroad board submit resignations

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4 others say they will step down amid reports of excessive spending

At the request of Mayor Mitch Landrieu, two members of the embattled New Orleans Public Belt Railroad board have submitted letters of resignation and at least four others have verbally committed to stepping down in the wake of reports of excessive spending at the quasi-city agency.

new_orleans_public_belt_railroad_logo.JPGThe logo of the New Orleans Public Belt Railroad is displayed on one of its three Pullman cars.

The resignations of cement company president Arnold Baker and finance firm owner Tina Owen came after the departure Monday of General Manger Jim Bridger, whose free-wheeling spending habits were questioned by the state auditor.

Landrieu said Walter Chappell, Roy Mack, Paul Wegener and another board member whose name he didn't disclose have indicated they wil resign.

At a news conference Wednesday, Landrieu asked all 14 members of the Public Belt's board of commissioners to step down. As mayor, Landrieu serves as the board's president; two board seats have been vacant since he took office in May.

Though he stopped short of accusing every board member of blessing Bridger's rampant spending on meals, his investment of $2 million in public money on antique rail cars used to host private events and excessive overtime spending, Landrieu said members should have been more attentive.

"The board failed to exercise proper oversight of what Mr. Bridger was engaged in," the mayor said. "It really wasn't much of a secret. ...I find it a bit disingenuous that some board members now express surprise at what they found."

Landrieu said his top aides have tried to contact all 14 board members to pass along his request for their resignation. A few, including president pro tempore Jim Baldwin, have said they'll consider it, he said.

Landrieu said he plans to ask the City Council to remove board members who refuse to resign, though he allowed that the option may not be possible for a handful of commissioners who are appointed by the board itself as a result of the dissolution entities that used to fill the posts, such as the city's now-defunct cotton and sugar exchange boards.

Meanwhile, Landrieu said his chief administrative officer, Andy Kopplin, will meet next week with representatives of the six Class 1 railroads that use the Public Belt to assure them that the city-owned railroad will continue to serve their needs during the leadership shake-up.

Kopplin said he plans to reach out particularly to the Burlington Northern Santa Fe Railway, which was once the Public Belt's largest customer but pared its use of the New Orleans railroad after a recent tussle with Bridger over schedules and rates.

The New Orleans Public Belt Railroad is a century-old state-chartered agency that oversees 25 miles of track stretching across the Huey P. Long Bridge, through the Port of New Orleans and on to eastern New Orleans. Financed by user fees, the agency receives no tax revenue but operates tax-free.

Michelle Krupa can be reached at mkrupa@timespicayune.com


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