The American Association of Railroads challenged assumptions and criticisms made by the Consumers United for Rail Equity, a shippers advocacy group, in CURE's public response to Berkshire Hathaway's acquisition of Burlington Northern Santa Fe Corp.

In particular, the railroad industry group's spokesman, Arthur Holly, called attention to the reduction of railroad shipping costs.

"Average inflation-adjusted rail rates have dropped by nearly half since the Staggers Act partially deregulated the railroad industry in 1980," Holly said in an email. "That has meant billions of dollars in savings for American consumers every year."

He also questioned the logic of CURE's suggestioin that BNSF Railway, if and when its owner's stock is no longer publicly traded, won't be as transparent because it wouldn't report to the Securities and Exchange Commission.

"It is the Surface Transportation Board (STB), an independent agency within the U.S. Department of Transportation, as the economic regulator of the railroad industry, with (rate) oversight here," Holly said. "The company's regulatory reporting requirements will not change as a result of the proposed transaction."

He also addressed CURE's suggestion that rates imposed on CURE's membership, captive shippers, pad railroad profits.

"While it is fair to say that railroad earnings have improved in recent years, they cannot reasonably be accused of earning excess profits," Holly said. "If you look at return on total capital - a common way to measure profitability - railroads are only now equal to the median for all other industries. Using return on equity, another common way to measure profitability, the rail industry in 2008 barely exceeded the average among all industries - for probably the first time in modern history."

Railroads are still below several of the highly profitable industries and firms represented in the CURE coalition, Holly said.

Railroads since 1980 have reinvested more than $440 billion into their systems and vastly improved rail service - that's more than 40 cents of every revenue dollar, according to Holly.

"Unlike trucks, barges and airlines, America's freight railroads operate almost exclusively on infrastructure they have built, maintain and pay for themselves," Holly said. "These investments, made possible by improved railroad company earnings, are a positive development for America - they will ensure that when the economy rebounds, freight rail will be there to carry more people and the goods that we need."