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(AP) - The trustee for the Canadian Pacific
Railway Corp.'s acquisition of the Dakota, Minnesota and Eastern
Railroad says DM&E President and CEO Kevin Schieffer has left the
company to pursue other opportunities.

      Trustee Richard Hamlin, a private consultant who built a 30-year
career as a transportation executive, said Schieffer's departure is
effective immediately.


      Officials say Ed Terbell, the chief operating officer, and Kurt
Feaster, the chief financial officer, will manage the day-to-day
operations while the Sioux Falls-based DM&E remains in trust.


      On Sept. 30, the Canadian Pacific received U.S. Surface
Transportation Board approval to acquire control of the DM&E and
its subsidiaries. Hamlin says the Canadian Pacific expects to
assume control of the DM&E Oct. 30.


      When the STB approval was announced, a Canadian Pacific
spokesman the company had not yet decided if it will continue with
the DM&E's plans to build new track into Wyoming coal fields and
ship coal east across South Dakota and southern Minnesota.


      The deal calls for Canadian Pacific to pay $1.48 billion in cash
for the DM&E, with future payments of up to $1 billion depending on
progress on the expansion project.


      One of the people Schieffer clashed with was former Gov. Bill
Janklow, who has done legal work for the Mayo Clinic and represents
landowners along the route.


      "I wish him well," Janklow said of Schieffer. "He was a
worthy adversary. He did phenomenal things for that railroad. He
accomplished their missions. He and I didn't get along, we weren't
personal friends, but that's irrelevant. He did what that railroad
wanted done and he did it how they wanted it done."


      Janklow said he doesn't see Schieffer's departure as having any
effect on anything, including the land condemnation process for new
track in western South Dakota.


      "My complaint with the condemnation is the process. That's our
complaint. It's the way it's done, it's how people are treated
that's important."


      Supporters of the project have praised Schieffer for his efforts
to get the project built, and they said he has been sensitive to
the views of those along the line.


      Project supporter Sen. John Thune, R-S.D., said it is "probably
not a big surprise" that Schieffer left the DM&E. Schieffer, who
was a top aide of former Sen. Larry Pressler, was a strong backer
of Thune.


      Thune told KCCR Radio in Pierre that it probably was only
natural for the Canadian Pacific to have its own staff in
leadership positions. Schieffer may have decided to leave on his
own, Thune added.


      The existing track runs through Rochester, Minn., where civic
leaders have long expressed safety concerns about the coal train
project.


      Dennis Hanson, president of the Rochester City Council, said
CP's purchase of DM&E affords the opportunity for a fresh start on
discussing safety issues.


      "I think when Mr. Schieffer was on board, there was a lot like
oil and water trying to mix and it just didn't work," Hanson said
in an interview. "I think hopefully with this new ownership that
we can start fresh and both meet at the table and discuss things in
a civil manner and hopefully get some great things accomplished."


      Chris Gade, a spokesman for Mayo Clinic in Rochester, echoed the
safety concerns.


      "From our perspective as Mayo Clinic regardless of who has the
responsibility for leadership of the organization, we really feel
the highest priority has to be placed on safety, safety for
patients, the staff and the community of Rochester," Gade said.


      "We look forward to, as we've said, the opportunity to work
with a new set of leadership for the organization. We feel it's
appropriate that they're transitioning to new leadership."


      Hanson said CP representatives are expected to visit Rochester
and other communities on the line.


      `We're just waiting for that to happen and sit down and have
some face-to-face negotiations," he said.


      "I think right now everything is on the table. Safety is our
No. 1 issue. Those are things we'll express to whoever comes to the
table and see if we can get off to a little better start than we
did last time with Mr. Schieffer."

      Schieffer could not be reached for comment.


      After the sale was announced a year ago, officials from
Rochester and the Mayo Clinic filed documents with the STB, saying
more and faster trains carrying hazardous materials on unsafe
tracks would be an environmental and safety risk. 


They argued the
project could lead to dangerous spills of hazardous materials along
the line, which is only a few blocks from the clinic.
      

Gallery

Federal board approves Canadian Pacific merger

Rochester, Mayo still not satisfied with DM&E safety assurances

DM&E sale may move expansion forward

Business and Economic News

Kevin Scheiffer, who has fought for nearly a decade to expand the DM&E railroad through  southern Minnesota, has resigned his position as president and CEO.

DM&E's Schieffer leaves the company

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