Trains News Wire
Great Lakes Basin’s Net Worth was $151 in 2016
Railroad Promoter has Accumulated Hundreds of Thousands of Dollars in Expenses with No Income
June 26, 2017
By Richard Wronski
CHICAGO — Officials with the private corporation seeking to develop a new $2.8-billion railroad to bypass Chicago congestion said it had a net worth of $151 at the end of 2016, according to a filing with federal regulators.
Great Lakes Basin Transportation Inc. listed $802,000 in accounts payable for its current liabilities in 2016. Equity included $473,573 in stockholder investment but a negative $71,878 in retained earnings and net income of a negative $1,203,445, according to the statement.
In an accompanying statement, the Crete, Ill.,-based company said it had no net income in 2016. The company listed $401,544 in investment revenue from stock sales in 2016, but nothing was left after expenses. The largest category was $312,828 for consultants, followed by $66,360 for legal expenses.
The balance sheet and income statement was filed June 21 by Great Lakes Basin with the U.S. Surface Transportation Board, which had requested the information earlier this month.
Great Lakes Basin also filed a list of its 10 top shareholders, led by Frank Patton, the chairman, who controls slightly more than 87 percent. Patton founded and managed Portfolio Dynamics, a software company, according to a company biography on Great Lakes Basin’s website.
The next largest shareholder, with five percent, is James T. Wilson, the vice chairman. Wilson worked for 18 years for the Atchison, Topeka & Santa Fe, and 20 years as a railroad industry consultant, according to his biography.
The disclosure followed the board’s rejection of Great Lakes Basin’s claim that its list of principal stockholders was “highly confidential” and should not be released.
Great Lakes Basin officials seek authority from regulators to build and operate a 261-mile rail line around the Chicago area from southeast Wisconsin and northwest Illinois to northwest Indiana.
The line is intended to relieve Chicago’s rail congestion and would interchange with each major rail line operated by the six Class I carriers serving Chicago, along with six regional railroads, at 26 points.
The proposed project has drawn extensive grass-roots opposition, according to filings with the board. Opponents include at least six groups from at least four Illinois counties, the Illinois Farm Bureau and six county farm bureaus, and the Chicago-based Environmental Law & Policy Center.
Kevin Brubaker, deputy director of the Environmental Law & Policy Center, pointed to the disclosure that Great Lakes Basin claimed a net worth of $151.
“That’s enough to buy about ten used railroad ties,” Brubaker said in a statement to Trains News Wire. “It is hard to imagine how they will demonstrate financial fitness to the Surface Transportation Board.”