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Toledo Blade May 21, 1986

Railroad Resumes Under Self-Insurance Fund

One of two Michigan short-line railroad companies that ceased operating May 6 because of insurance woes has resumed service with a self-insurance fund approved by the the state, Governor Blanchard's office said yesterday.

Tuscola and Saginaw Bay Railway Co. returned to service Monday night using a fund developed by the Michigan Insurance Bureau, the state department of transportation, the railway, and its shippers, the governor's office said.

The fund is secured by lines of credit furnished by the shippers. No public money is involved.

The shutdown of the railroad affected some shipments through Toledo because the TS&B connected with the Ann Arbor Railroad in Ann Arbor.

Matt McPherson, Ann Arbor manager of sales and industrial development, said about 20 carloads of freight, were expected to be interchanged today. The shipments will be moving into and through Toledo on Ann Arbor connections with other railroads, he said.

Sand, grain, and some shipments of auto parts were routed to other lines while the T&SB was idle. The railway, based in Vassar in Saginaw County, operates about 530 miles of track, employs 64 workers, and serves 64 Michigan companies.

The Hillsdale County Railway Co., also forced to shutdown May 6 when its liability insurance company, Midland Insurance Co. of New York, was ordered to liquidate its assets by a court in that state, is attempting to set up a similar fund, according to Will Gamble, general manager.

July 15, 1986, Ann Arbor Freight and yard office (dispatcher) burned, building 60'x22', empty at time.

Aug. 8, 1986, a garbage truck struck south-bound train derailing 390 and 393 along with seven cars just south of the village of Elsie at Meridian Road.

10/23/1986 - Cherry Street branch, out of service, due to City of Toledo Greenbelt project.

12/8/1986 - CSX crossover at Hallet Tower re-installed, switches now point in opposite direction.