During a recent House Transportation and Infrastructure Subcommittee on Railroads, Pipelines, and Hazardous Materials hearing entitled “Investment in the Rail Industry” U.S. Rep. Nick Rahall (D-WV) expressed his concerns about the future of the railroad industry in southern West Virginia, including the increased influence of a foreign-based hedge fund on the CSX Railroad and the Greenbrier Resort.

“After many years of decline, the railroad industry is on its way to regaining its status as a crucial component of the American economy,” said Rahall. “Now, more than ever, we must pay careful attention to any investment or business transaction regarding railroads that could jeopardize the transportation infrastructure and economy of our Nation.”

As Vice-Chairman and long-time member of the House Transportation and Infrastructure Committee, Rahall has been deeply involved in the revitalization of the railroad industry across the Nation, especially in West Virginia.

"In West Virginia, coal and railroads are bound together like rails and ties—both must succeed for either to prosper,” said Rahall. “Railroads like CSX are some of our largest employers—providing good, high-paying jobs for thousands of hard-working railroad employees—and a crucial component of statewide economic development.”

During the hearing, Rahall questioned representatives from the Children’s Investment Fund (TCI)—an activist hedge fund based in London and registered in the Cayman Islands—about their future intentions involving CSX. TCI’s increased interest in CSX has raised many concerns due to the tendency of hedge funds to focus on the “short-term” financial outlook and the fact that TCI is foreign-owned and, therefore, not regulated by the Federal Securities and Exchange Commission (FEC).

Rahall also expressed his concerns for the future of the CSX-owned Greenbrier Resort in White Sulphur Springs. TCI’s increased involvement in management of CSX could lead to the sale of the resort to a hotel chain, bringing the management of the 230 year-old estate into question. The Greenbrier Resort employs over 1,500 southern West Virginians and is one of the largest tourist attractions in the State.

“The Greenbrier is renowned worldwide for offering unmatched old-fashioned southern charm and hospitality, in a luxurious setting, a tradition in which West Virginians take great pride, and one we wish to continue,” said Rahall. “As Vice Chairman of the Transportation and Infrastructure Committee, I will closely monitor any transactions that could adversely affect the Greenbrier or CSX, so that future generations can experience this historic and cultural landmark for years to come.”