Volume 2, Issue 11
November 2, 2001

Inside this issue:
K&O celebrates Grand Opening
Railroading takes Wiles on trip of a lifetime
Customer pleased with train ride for Open House
Employee News
Anniversaries
Staying healthy controls costs for Watco Companies

K&O celebrates Grand Opening by Julie Madl Newsletter Coordinator

The Kansas and Oklahoma Railroad celebrated a successful startup and promised continued success for years to come during a Grand Opening event October 6th.

Rick Webb speaks to the audience gathered at the Grand Opening of the Kansas and Oklahoma Railroad as Dick Webb listens. Photo: Kristy McKechnie

The event began with words of present success and promises to continue customer satisfaction backed by long-term commitment. Rick Webb, CEO of Watco Companies, said although the first few months have been successful, customers should only expect the service to continue to improve.

"We are here to supply the best service possible to our customers. We give them the choice to have rail service, and that allows them to grow and prosper along with us," he said.

Along with Rick Webb, Dick and Kaye Lynne Webb, owners of Watco Companies, Ed McKechnie, Dir. of Gov. Affairs and Lt. Gary Sherrer shared their joy in the success the K&O has created.

A ribbon cutting followed the ceremony and representatives from many areas participated. Black and gold ribbon stretched the width of the railroad tracks, while representative lined up to make the scissorcut signifying the beginning of a long-term commitment to improved service in the Wichita area.

Participating in the ribbon cutting were Lt. Gov. Sherrer, Lucky Mitchell, GM of the K&O, The Webb families, representatives of ODOT, KDOT, The Farmers Co-op, Vulcan Chemicals, DeBruce Grain, the Wichita Chamber of Commerce and the Mayor of the City of Pittsburg.

K&O Railroad customers, Kansas officials, Watco Family members and others cut the ribbon at the Grand Opening Ceremony. Photo: Kristy McKechnie

McKechnie said it was important to bring supporters of the rail industries together for a celebration of this kind.

"Railroads have been kind of notorious for doing things their own way. What we want to do is make the railroad easier for customers to use and bring about the realization that the customers are the reason we are here. Their satisfaction is our number one concern," he said.

The Watco Companies tradition is built on a promise to provide the best transportation related services in the most efficient and economical manner possible, in an environment that allows the company and the people to improve and grow, passing on to future generations a company with an outstanding reputation for customer service, profitability and quality.

The addition of the K&O didn't change the promise made by the people who carry that responsibility on their shoulders. It only added another reason for those same people to continue to follow up on that promise.

My car is my office, an engine my workstation." That's how Jack Wiles explains his life working for the Kansas and Oklahoma Railroad.

As Trainmaster for the K&O, Wiles is responsible for a large area that stretches from Hutchinson, Kansas, to Towner, Colorado. Not only does he have a broad area to cover, but a broad range of responsibilities also.

"There are a lot of things I'm responsible for...but the customers are my main concern. I just manage this part of the railroad, the schedules and whatever a customer wants," Wiles said.

Wiles is a former Burlington Northern Santa Fe employee who just kind of fell into a job with the Central Kansas Railway in the summer of 1997.

Beginning with the BNSF in 1972 as an "Engineer Helper", Wiles was in Galveston, Texas.

"I had taken the buyout from the BNSF after 25 years with them, when Lucky Mitchell (General Manager of the K&O) called me. I had known Lucky for years and he heard I was no longer with the BNSF, so he called to see if I could help with harvest."

A few opportunities came around while Wiles was helping out during harvest.

"I started working as an engineer and after two months the trainmaster position opened up so I worked in Wichita. After a bit in that area, I moved out to the Great Bend/Hoisington area."

Years of railroad experience and moving location to location came with Wiles' job for the BNSF. He was a "hostler", who moved engines around the shop for the mechanics; he also trained on locomotive simulators in Topeka, Kansas. From Kansas, he went back to Galveston for a few years before transferring to Slaton, Texas, to be the Road foreman of Engines. When asked why he moved so much, Wiles had a direct answer.

"They railroad was afraid we would grow grass under our feet, so they moved us pretty often. We didn't have a choice...if we wanted to work, we went where they told us," he said.

And the moving wasn't over either. From Slaton, Wiles moved to Amarillo, Texas, as Road Foreman, but after 4 years was promoted to Assistant Superintendent of Operating. Needles, California, is the next place Wiles called home, again as Superintendent of Operating. Finally, just before taking the buyout from the BNSF, 3 years were spent in Silsbee, Texas in the same position.

Wiles is glad he made the move to the CKRY. And since the acquisition of the K&O by Watco Companies, Wiles says things continue to improve.

"It's really refreshing to be working for railroaders again. The company that owned the CKRY worked mainly with real estate and didn't quite understand railroading. This has been a very positive experience," Wiles said.

Wiles has been married for 38 years and his wife, Patricia still lives in Amarillo, Texas. They have one son and one daughter, and 2 granddaughters and 2 grandsons. His plan is to move back home to Texas after retirement, but wonders is he'll ever retire.

"Railroading is one of those things that gets into your blood. Once you start--you can't stop. I really don't know if I'm a retiring kind of guy."

September 15th, Ash Grove Cement, a customer of the South Kansas and Oklahoma Railroad, held a daylong open house and family day to introduce it new state-of-the-art "dry-process" plant.

Since 1907, Ash Grove has used the "wet-process", but the new "dry process" will allow the improved facility the capacity and available raw materials to triple its current production.

One of the main attractions of the Open House was the train-ride provided by the SKO and Watco Companies. Three passenger cars complete with conductors transported over 2,000 visitors from downtown to the plant, a journey almost 2 miles.

Each passenger clutched a free ticket issued by a "Harvey House Girl", named for the waitresses in the Harvey House restaurants in early 1900's Santa Fe railroad depots. A total of 7 roundtrips were made. David Palmer, who works in public relations for CJRW Outmarketing, said the whole day was a success, and the use of the passenger cars made the day an even bigger success.

"We really enjoyed the hospitality of Watco Companies, providing the train service. Most of the visitors had never ridden a passenger train, so it was a great opportunity."

James Wren joined the Kansas and Oklahoma Railroad in Wichita, Kansas, as a conductor last month. James has spent the last few years in retail management, accounting and farming and trucking.

Kenneth Bowmaker also joined the K&O last month. Kenneth brings experience with welding, and large machinery with him to the Kansas and Oklahoma.

Another addition to the K&O is Timothy Baline. Timothy will be working in the train service area. Timothy has experience in the railroad industry with the Union Pacific as brakeman, switchman and conductor.

The K&O also welcomes Jeffrey Dick. Jeffrey will be working as a conductor/engineer. Jeffrey has worked as a switchman/conductor, engineer, yardmaster, trainmaster and DSLE for the CSX Railroad.

Michael Thille came to the K&O as a conductor last month. Michael has a colorful background of jobs including roofing and dry-walling, commercial fishing, sales, customer service and surveying.

Jody Kurth comes to Watco Companies corporate office as a payroll clerk. Jody has worked in payroll and accounting with medical and insurance backgrounds. She has 5 children, Anthony, 18 months; Sarah, 10; Bekah, 8; Kirah, 6; and Alix, 8. Jody and her fiancée', Scott Murphy, are planning a spring wedding.

Betty-Jo Anthon joined the Finance and Accounting Department at the corporate office in Pittsburg as a Financial Analyst in August. She has many years of experience in accounting and office management. She and her husband Cliff have 4 daughters, Aimee, Diane, BeLinda and Betsy, and 12 grandchildren children. Their daughter Betsy, is married to Randall Readinger, CFO in Pittsburg. Cliff and Betty Jo will celebrate their 41st Wedding Anniversary this month.

Congratulations to the following dedicated employees who celebrate anniversaries with Watco Companies, Inc., in the month of November.

• 1 year- Patrick Fugate, Allen Wheeler, Thomas Gothard, William Clifford, David Binder, Ladonna Watts, Gary Westlake and Patrick Oxley.
• 2 years- Leon Forsythe, Michael Kinsley, Tyler Robertson, Kenneth Clark, James Adams III, Ronnie Hice, David Thomas, Brian Riceman and Kelley Scarrow.
• 3 years- Robert DeLuna.
• 4 years- Edward Cullinan.
• 5 years- Paul Loper, Spike Pitman, Brian Guy, Brian McCoy and James Ayers.
• 6 years- Tim Brinkerhof.
• 7 years- Theodore Burnett and Tony Tatum.
• 8 years- John Ostrander, Donovan Kohler, Ron Setser, John Brown, Jack Lisle and Lloyd Payne.
• 9 years- Franklin Miller.
• 10 years- Bennie Hill.
• 16 years- David Bidleman, Victor McClure and Linda Stalford.
• 18 years- Rolan Herman
• 26 years- Herbert Callahan.

While attending the recent budget/management meeting in Pittsburg, Kansas, I was especially interested in the use of Human Resources Director, Walter Keener's, topic of discussion-Health Care Cost. Watco Companies understands that health and accident insurance has become necessary for most families and had put faith in its employees by fully self-insuring them. There may be a few of us who don't understand being self-insured. Being self-insured means that a medical claim is paid for them from Watco's pocket until the stop-loss portion of the insurance kicks in. Watco Companies is not alone in this practice of self-insuring its employees, so there are statistics for comparison and our medical claims were well below the average for dollars spent per employee.

It is of great importance that we all continue to do our part in keeping health care dollars under control, for these dollars effect the bottom line the same as any other dollars spent in the company. The question was asked what can we do to keep health care costs under control. Choosing Blue Cross/Blue Shield health care providers and using generic drugs controls costs but are secondary to the savings experienced by being healthy. Fortunately, there are several ways in which we can stay healthy, prevent certain types of disease, improve quality of life and save health care dollars. Walking two miles in thirty minutes or less four days per week will reduce your chances of developing heart disease by nearly fifty percent. Encourage your family to take part in your walks so all can benefit by controlling weight, keeping blood pressure in check and reducing stress. If you smoke, cut back or stop. Tobacco use cost U.S. companies billions of dollars each year in health care costs, not to mention the dollars that tobacco users spend themselves. Improve your diet by eating more fruits and vegetables and whole grains and reducing fats and sugars. By doing this you greatly lessen your chances of heart disease, diabetes, obesity and some forms of cancer.

Watco Companies does not discriminate against its employee's health, so let's all be accountable for our own health and health of our family.

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