CHEHALIS, Wash. — The president of the Chehalis-Central Railroad and Museum has resigned as the railroad deals with its shutdown because of a lack of insurance, saying in an email that the “organization is doomed to fail and I will not be a part of that failure.”
The Centralia Chronicle reports that James Folk, who was elected president in January, announced his resignation in an email send to members of the organization on Friday, citing disagreements within the organization’s board of directors.
“It has become very clear that the majority of you have no interest in listening to any outside guidance or making any changes to resolve our current situation,” Folk wrote.
The heritage operator shut down on March 5 after insurers declined to renew its operating liability insurance when it expired on March 6. In a subsequent meeting, the organization’s insurance broker said losses of more than $1 million resulting from operating accidents, led to the insurers declining to provide insurance [see “Accident losses led to end of insurance …,” Trains News Wire, March 10, 2022].
The broker, Tripp Salisbury of Borden Perlman McRail, said the railroad should seek premises liability insurance, which would allow it to continue some activities and protect its property. But he also said the organization would need to make significant changes, including developing more of a business structure.
In his letter, Folk said he was being fought on the effort to obtain premises insurance by individuals who “feel our broker is untrustworthy and they need to do his job for him. That is simply unacceptable.”
Folk told the newspaper the only way the organization could survive was with new leadership “with business experience and railroad industry experience.”
The organization’s vice president, Mary Kay Nelson, told the newspaper she and the board are currently working “to strategically plan their next steps.”
