(Letter 7)
Mr. R. E. Carter
General Chairman, UTU-T
P. O. Box 1333
Pocatello, Idaho  83204

Mr. D. L. Smith
General Chairman, UTU C&T
165 South West Temple
Arrowpress Square, Suite 110-6
Salt Lake City, Utah 84101

Dear Gentlemen:

        Your(sic) have consistently expressed concern about how
Article X(2) will be applied. This  section addresses the
commitment that "no one will be furloughed as a result of the
implementation of this Agreement. "

        In order that there is no misunderstanding as to the
Carrier's intentions, we have agreed to the following for
employees on the roster on implementation day:

(1) No trainmen will be furloughed as a result of this
    Agreement.
(2) Trainmen will be furloughed only as a result of a
    decline in business.
(3) Prior to furloughing any trainmen, the Carrier will
    notify the General Chairman advising of the number of
    trainmen to be furloughed and the reasons why.
    Trainmen may be furloughed following this notification.

(4) Should the General Chairman reject the Carrier's
    decision, the General Chairman may request expedited
    arbitration.

(5)  The arbitration shall be governed by the following:
    (a) The Carrier pay the costs and expenses of the
        arbitrator.
    (b) The arbitration shall be held within 20 days of
        the General Chairman's request for arbitration
        and the arbitrator shall render a decision within
        20 days of the arbitration hearing.
    (c) The Carrier shall have the burden of proving the
        furloughs were the result of a decline in
        business.
    (d) Should the arbitrator find the Carrier did not
        meet its burden of proof, furloughed trainmen
        shall be entitled to lost wages.

        I trust this correctly reflects our understanding and
eliminates your concerns. Should the above be acceptable to you,
please acknowledge by signing below.

Yours truly,

L. A. Lambert
Director Labor Relations

AGREED:

R. E. Carter
General Chairman UTU-T

D. L. Smith
General Chairman, UTU-C