Katrina recovery continues
NS offers support to employees, communities

Hurricane Katrina struck Louisiana , Alabama and Mississippi with a vengeance Aug. 29 bringing massive flooding and damage to the area.

As the storm approached, Norfolk Southern employees worked to protect property and equipment moving rolling equipment inland and staging people, ballast, rail and equipment just outside the hurricane’s path. Transportation planners used the railroad’s Thoroughbred Operating Plan to plot “what if” scenarios in advance of Katrina’s arrival, allowing for efficient rerouting of freight.

Freight that regularly traveled through New Orleans for connection to other carriers was rerouted through the railroad’s other gateways.

After the hurricane struck, NS crews inspected some 1,400 miles of railroad and removed thousands of trees on lines in the Gulf States.

To help affected employees and communities NS is providing $1 million for community recovery efforts while enhancing its other relief-related programs in the wake of Hurricane Katrina.

In communities along its lines in Louisiana , Alabama and Mississippi , NS is contributing a total of $500,000 directly to local and state emergency responders and other community organizations.

At the same time, NS is matching employee donations to designated national relief organizations, up to a maximum corporate donation of $500,000.

“Norfolk Southern has served the people and industries of the Gulf Coast for more than 130 years,” said NS Chairman and Chief Executive Officer David R. Goode . “For our local employees, customers and neighbors, we join with those around the world who are devoting their resources to the relief effort.”

NS expanded its financial program for employees in areas of Louisiana , Alabama and Mississippi who sustained losses due to Katrina. The revised program has two levels:

Under the first level, NS will grant up to $4,000 to eligible affected employees to help cover their un-reimbursed losses and temporary living expenses.

Under the second level, NS will provide interest-free loans up to $15,000 to eligible affected employees to cover uninsured residential or property damages or losses.

In addition, NS employees who want to personally participate in on-site hurricane recovery efforts can apply for paid leave. The railroad will provide two weeks paid leave for up to 20 employees serving recognized relief organizations in communities affected by the hurricane.

For information on how to participate in these programs, employees should call the Human Resources Help Desk at 800-267-3313 or send an e-mail to hrhelpdesk@nscorp.com. For further information they can visit the NS Web site at www.nscorp.com.

Other recovery efforts under way at NS include:

• Providing temporary job relocation assistance to employees who sustained hurricane-related losses;
• Promoting local relief campaigns, for example on the railroad’s Illinois Division where employees are launching their own fund-raising drive.
• Donating flares for use by law enforcement in Louisiana ;

NS was rerouting freight that formerly would travel through New Orleans , and operations were normal with the exception of those in New Orleans itself and on the railroad’s bridge over Lake Pontchartrain . Repairs continued on the bridge, which when reopened will be a key artery for transporting rebuilding supplies and equipment.

Court approves Graniteville class action settlement

During a fairness hearing Aug. 17 in federal court, U.S. District Judge Margaret Seymour approved a class action settlement that provides restitution for minor personal injury, property damage, business and wage loss, expenses and inconvenience associated with Norfolk Southern’s Jan. 6, 2005, derailment at Graniteville, S.C.

Judge Seymour granted formal approval of the settlement reached by NS and counsel representing many residents of Graniteville and other class members, finding the class settlement to be fair, adequate and reasonable.

“We are pleased with the court’s approval of the class action settlement, which provides full and fair compensation to the class members,” said Bob Wells, general manager casualty claims. “This settlement will resolve the majority of claims resulting from the derailment without the delay and expense of lengthy litigation. In fact, Norfolk Southern is processing the first payments of claims submitted through the proof-of-claim process preliminarily approved by Judge Seymour in May and finally approved at today’s hearing.

“This settlement is another step forward in our unwavering commitment to help the people of Graniteville recover from the accident. We continue to work with those who were not included in the class, and with their counsel, to resolve the remaining claims,” Wells said.

The settlement agreement was subject to final approval by the court after members of the class were given an opportunity to review and object to the terms of the settlement. Judge Seymour found no merit in any of the objections filed. Class members have until Sept. 15, 2005, to submit a claim form to the Claims Settlement Office.

NS handles record coal volumes in second quarter

Norfolk Southern handled a record 45.7 million tons of coal in the second quarter of 2005. This was the company’s highest level of coal volume since the consolidation with Conrail in 1999 and was up 3.9 percent compared with last year. The second-quarter record exceeded the previous record, set in the first quarter of 2001, by 1.9 percent. NS also set a new record in the second quarter for total coal, coke and iron ore volume, which reached 47.3 million tons, an increase of 2.6 percent over the previous record, set in last year’s fourth quarter. For all coal, coke and iron ore, NS has set new volume records in two of the last three quarters.

The major contributing factor to the increase in volume was coal moving to utilities, which continued to rebuild stockpiles. Additional growth also came from coal shipments to a new coke plant and strong first-half domestic metallurgical coal markets.

Interested in an NS scholarship? Read on

It’s time for high school juniors who are children of Norfolk Southern employees to start thinking about applying for one of the four-year NS scholarships to be awarded in 2007.

National Merit Scholarship Corporation, an independent, nonprofit organization, administers the scholarship program. No officer or employee of NS plays a part in the selection of scholarship winners.

For detailed descriptions of these NS scholarships, go to the NMSC Web site at www.nationalmerit.org. Competition for these scholarships is open to children of active, retired or deceased employees of NS and its participating subsidiaries. Applicants must be in their junior year of high school and plan to enter college in 2007.

To compete for a scholarship, a student must take the Preliminary SAT/National Merit Scholarship Qualifying Test on Oct. 12 or Oct. 15, 2005. Students who are starting their junior year must make arrangements with principals or counselors in September 2005 to take the PSAT/NMSQT.

Entry forms and program outline for the 2007 NS scholarship program can be downloaded from the Employee Resource Center. They also can be obtained by either writing to Norfolk Southern Corporation, Scholarship Program Coordinator, Three Commercial Place, Norfolk, Va., 23510, or sending an e-mail to nseducation@nscorp.com, or by MEMO to NSEDUCAT. Students should return the completed forms to the above address postmarked no later than Dec. 31, 2005.

The amount of each NS scholarship is determined individually and can range from $1,000 to a maximum of $4,000 a year for up to four years of college study, or until baccalaureate degree requirements are completed, whichever comes first. The amount is determined by NMSC.

NS to observe Hispanic Heritage Month Sept. 15 – Oct. 15

Norfolk Southern celebrates the traditions and contributions of Hispanic culture during Hispanic Heritage Month, which is observed Sept. 15 – Oct. 15. The company’s Diversity Council is sponsoring the celebration.

In 1968, Congress authorized President Lyndon Johnson to proclaim National Hispanic Heritage Week. The observance was expanded in 1988 to a month-long celebration. During this month, America celebrates the traditions, ancestry and experiences of U.S. residents who trace their roots to Spain, Mexico and the Spanish-speaking nations of Central America, South America and the Caribbean. Sept. 15 was chosen as the starting point for the celebration because it is the anniversary of independence of five Latin American countries — Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua. In addition, Mexico declared its independence on Sept. 16 and Chile on Sept. 18.

There is a special section of the NS Web site at www.nscorp.com devoted to information about Hispanic heritage.

Send us your stories about military service

We’re looking for stories about Norfolk Southern employees and family members who have served in the military for our November issue of Newsbreak. Send your stories, anecdotes and photos to editor Andrea Just via e-mail at andrea.just@nscorp.com, or U.S. mail at Three Commercial Place, Box 224, Norfolk, Va., 23510.

2006 calendar contest winners announced

Competition heated up in the 2006 Norfolk Southern calendar contest, with eight first-time winners. More than 150 slides and digital images were submitted, and the 11-person judging committee had its toughest time ever making their choices.

“The quality and diversity of the photos just keep getting better,” said Rhonda Broom, manager advertising and promotions, who manages the contest. “We are continually amazed at how employees find new and interesting locations to feature.”

Here are this year’s winners:

Cover: Casey Thomason, locomotive engineer, Columbus, Ga., was in the right place at the right time to capture a double rainbow over Norris Yard in Birmingham, Ala.

December 2005: Locomotive engineer John Stanovich of Chicago caught two trains passing at Holmesville, Ind., on a snowy winter day.

January: Conductor John Lindquist of Marion , Ind. , photographed a flock of geese at White River in Muncie as an NS train passed on the bridge overhead.

February: Russell Gaus, a student electrician in Enola, Pa., shot an eastbound auto-rack train crossing the Juniata River in Mt. Union, Pa.

March: Jared Hopewell, management trainee, Atlanta, used a sycamore tree to frame a mixed freight train crossing the Susquehanna River near Montgomery, Pa.

April: Solomon P. Jackson, property manager, Columbus, Ohio, found a train carrying coil steel moving through Monroe, Ohio, on a wet spring day.

May: Willie Brown, locomotive engineer, Mingo Junction, Ohio, captured redbuds in bloom at Natural Tunnel, Va., as an NS train passed through.

June: Robert Forsyth, assistant track supervisor, Richmond, Va., photographed an NS train rounding a curve beside the James River.

July: Charlie Juda, yardmaster, Gang Mills, N.Y., got a dramatic shot of a coal train at sunset at Cameron, N.Y.

August: Locomotive engineer Steve Rathke of Toledo, Ohio, used the walkway of his locomotive to get a closeup train shot of a new locomotive on the adjacent track.

September: Train dispatcher Rich Borkowski photographed a train for Triple Crown services reflected in the calm waters of a pond near New Galilee, Pa.

October: Eddie Brouse, yardmaster, Enola , Pa., captured an NS train passing over a bridge in Keating, Pa , in front of a mountain brimming with fall colors.

November: Jim Haag, locomotive engineer, Carlisle, Pa., found an NS train passing through Boiling Springs, Pa., in a pastoral setting with the added bonus of several Holsteins.

December: Section Foreman Thomas Eller of Ashtabula , Ohio , was out during an unexpected spring snowstorm as an NS train made its way through Madison, Ohio .

Back Cover: Bob Bahrs, conductor, Suffern, N.Y., captured an NS train beside a New Jersey Transit train at Kearny Junction, N.J.

NS’ 2006 wall calendar will be available for distribution to customers and employees in early November.

New NS scholarship established

Daughters of Norfolk Southern employees who wish to attend Converse College in Spartanburg, S.C., may be eligible for a newly endowed scholarship. Converse College is a small, residential college offering programs in the liberal arts, music, and selected professional areas for women at the undergraduate level and selected coeducational graduate programs.

The Norfolk Southern Endowed Scholarship at Converse College was established by former NS Director George Dean Johnson Jr. and his wife Susan of Spartanburg, S.C., in honor of David R. Goode and Norfolk Southern Corporation and is to benefit daughters of NS employees. The Office of Financial Assistance in conjunction with the Office of Admissions at Converse will award the scholarship. The college handles all aspects of the selection of winners and the administration of their awards.

This scholarship is open to children of active, retired or deceased employees of NS and its participating subsidiaries. Applicants must be in their senior year of high school and plan to enter college in 2006.

Who is eligible?

High school senior women who are daughters of Norfolk Southern employees are eligible for this scholarship. In any year in which no one fills this criterion, Converse College will consider students from the communities served by Norfolk Southern. Such students also must apply and meet all requirements for admission at the college.

How are winners selected?

All Norfolk Southern Scholarship winners in 2006 will be chosen from students who are invited to participate in the Milliken Scholarship competition that is generally held in January. Any student who meets the eligibility requirements for this scholarship must indicate so at the time of application to Converse and must also submit a letter from her parent’s supervisor or human resource director verifying her eligibility.

What is the amount of the award?

Awards can range from $1,000 to a maximum of $20,000 per year for up to four years of college undergraduate study or until baccalaureate degree requirements are completed whichever occurs first.

Are there requirements that scholarship winners must meet?

Yes. The formal offer of a Norfolk Southern scholarship that Converse College sends to qualified students specifies terms for acceptance and continuation of the award. Recipients must enter Converse in the fall term following selection and must enroll as a full-time student. Also, the recipients must enroll in a course of study leading to one of the traditional baccalaureate degrees, and remain in good academic and disciplinary standing.

Who handles scholarship procedures?

Questions may be addressed to:
Office of Admissions, ConverseCollege
580 E Main Street, Spartanburg, SC29302

(864) 596-9040 or (800) 766-1126 or www.converse.edu or Office of Financial Assistance (864) 596-9019 or www.nscorp.com/ERC

NS hurricane relief challenge

Once again, major disaster has struck, this time leaving thousands in our own territory homeless and without basic necessities. As they were for last year’s tsunami devastation, our employees are ready to help in any way they can. In that spirit, Norfolk Southern Foundation has launched a special grant program to enable eligible active employees to maximize the value of their contributions to the three national organizations listed here for their hurricane relief efforts.

As someone who was born and grew up in the area affected by the storm, I want to encourage you to read the program details below. Your generosity will be remembered by our employees, customers and neighbors in those communities that have
suffered so greatly.

Wick Moorman, President

Program details: Under the special program, effective through Oct. 31, 2005, Norfolk Southern Foundation will donate, up to a maximum corporate contribution of $500,000, one dollar for each dollar contributed by eligible active employees to the three designated organizations listed here (no others are eligible).

To facilitate implementation of this special grant, active employees should use the regular NS Foundation Matching Gifts Program Form and clearly mark “2005 Hurricane Assistance” in the “purpose” space. This form can be downloaded from www.nscorp.com (click on the “Employees” tab, then on “Retirees” to link to the form).

Eligible gifts must be in the form of checks, credit card payments or donations of marketable securities, and the minimum eligible gift is $50. Gifts made by payroll deduction or bank account debit are not eligible. If you send a check by mail, attach to it the Matching Gifts Program Form, with Part A filled out and signed; send it to the designated organization. If you make a credit card donation over the internet, please attach a copy of the recipient organization’s email acknowledgment of donation to you along with a copy of the Matching Gifts Program Form and send them to NS Foundation, P.O. Box 3040, Norfolk VA 23514 (in this case only, the recipient organization does not need to fill out Part B; the employee still must fill out Part A).

For any questions, please call the Foundation’s director, Deborah Wyld, at 629-2881 (microwave) or 757-629-2881 (e-mail Deborah.wyld@nscorp.com).

Eligible organizations:

United Way of America/Hurricane Katrina Response Fund
P.O. Box 630568
Baltimore, Md. 21263-0568
1-800-272-4630
www.unitedway.org

Salvation Army/Hurricane Relief Fund
P.O. Box 4857
Jackson, Miss. 39296-4857
1-800-SAL-ARMY
www.salvationarmyusa.org

American Red Cross/2005 Hurricane
P.O. Box 37243
Washington, D.C. 20013
1-800-HELP-NOW
www.redcross.org

NS provides help for employees affected by Hurricane Katrina

The company will offer interest-free disaster loans to employees who sustained losses caused by Hurricane Katrina.

“Our hearts go out to the people suffering in the wake of this devastating natural disaster, and we hope that offering interest-free loans to our affected employees will help them and their families get back on their feet,” said John P. Rathbone, executive vice president administration.

Information about the loans and obtaining applications should be directed to the Human Resources Help Desk by calling 800-267-3313 or by e-mailing hrhelpdesk@nscorp.com. The loans will be issued up to a maximum $15,000, and the payment terms will be up to five years.