>> Coming up on "Need to Know," Joe Klein of Klein Steel Service expense while -- explains why his company is starting to rail.
We'll talk about what political candidates are dealing with in cyberspace.
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>> Rochester's news magazine since 1997.
This is "Need to Know."
Thanks for joining us.
I m Julie Philipp.
According to the Association of American real roots, a decent amount of can move one ton of a freight 436 miles on just 1 gal. of fuel.
That is led people to look at rail as a smart option for the transport of goods.
This includes people like Joe Klein, the see of it Klein Steel Service.
-- The CEO of Klein Steel Service.
Despite is site's proximity to the highway, he's just as interested in the train tracks out back.
>> We are a processor and distributor.
We are kind of like weapons -- wegmann's.
>> This is the CEO of Klein Steel Service, a family-run businesses since 1971.
>> We have ankles and plates and stainless and aluminum.
If he were, say, Kodak, you'd buy material from us.
We might have had solid, but holes in it for you.
>> When the company decided to move to the new application for years ago, they had something different in mind.
It was predicated on having a rail line.
Something like you see here.
To become more cost efficient and environmentally safe and transporting raw material.
>> The rail is much cheaper, more than taking it by trucks.
These oversize plates -- there is no premium for rail.
The advantage to the community will take hundreds of trucks off the road.
From ecological viewpoint, the carbon footprint has about 1/5 or less the carbon footprint.
>> This steel business is on track with going green, taking the breaks of the real way that was behind its business.
>> We are putting it into a new place.
It was decommissioned and reconditioned.
>> This is a strategy Joe says they saw coming.
>> Specifically for us, diesel would be rising.
We guessed, especially with plates we were going to be buying, they would not fit of the truck anymore.
This plate as to come by rail.
This one here is just about 12-foot-by-30-foot.
>> That is a big -- be able to move bigger bites -- bigger bites a lesson to cut costs in half, which he will pass on to a customer.
-- he will pass the savings to the customer.
Trains will be bringing in much larger less than trucks, like this one, carrying 23 votes.
-- 23 loads.
>> You can have four times as much as you did on the one truck.
It is environmentally much more friendly.
Even got a lot of weight, a lot of distance, -- you can go a lot of fight, a lot of distance, with very little energy.
A lot of our customers are excited that we will be able to get the bigger play.
We will save them money because of the handling issues.
I lot of people are excited that we're putting it in.
>> For "Need to Know," I am Carlet Cleare.
>> The state is developing a plan to revive rail transport for both freight and passengers.
Karen Rae, deputy commissioner for the state Department of Transportation is here to talk about it.
Thank you for being here.
He released a draft of the New York State Real plan.
-- you released a draft of the New York state rail plant.
>> There are three issues.
Number one, we have not had a comprehensive Rail Plan for it New York State for 22 years.
For the first time ever in history, is a real way moving in Washington.
A lot of people worked many decades to achieve that.
It is more focused on the passenger side, but it opens the door for money for both passenger and freight operations.
But more important, it is just good business.
It is important to know what real can do and how factors into our decision making.
>> What is the vision compared to what we have now in terms of infrastructure?
>> What we're starting to do is talk about what should be the goal of the rail system.
And what our strategies and priorities that would help us move forward the real agenda?
We are facing 30 years of disinvestment in this particular mode.
Over the same 50 years we have been investing in the highway and the airlines.
I would like to have people look and say -- in literally the last 30 years, 40 percent said the money for transportation to highways and 20% for Aviation and all% for a public transportation and 4% went to rail.
-- 12% for public transportation and 4% went to rail.
>> Could you compare our contrast how much New York uses -- trains to transport freight vs trucks?
>> We are seeing at huge growth.
Mr. Klein's store is one of many here across the state, about the growing demand in the economy, and more fuel efficiency.
We're seeing a big shift to rail.
The real by itself is targeting and proposing a strategy that would say that we need to increase by at least 25% our market share, and the amount of service we give for the free to be moved on to rail.
-- for the freight to be moved on ramp.
-- rail.
We expect a doubling in use of freight in the next 20 years.
If you a badge and a doubling of truck traffic, that is a scary thought.
-- if you imagine a doubling of truck traffic, that is a scary thought.
>> It is not ready to handle significant increases yet?
>> We are looking at strategic investment points.
A truck moving to a train, or a train moving to a truck from intermodal.
It is an integrated system.
>> When you get to the end of the train line, you need a truck to get to -- Kline does need a truck, because he cannot bring -- Joe Klein does need a truck, because it cannot bring the plates into the building the other way.
But environmentally and public safety-wise, it is smart to move some of these things on rail lines.
Chemical, transport, is that part of an issue with this plan?
>> Many people said that we worry about certain things moving on the rail line.
The National Safety Board will tell you that the statistics are far sicker to move something ought to the rail line.
There is a sit -- far safer to move something on a rail line.
Especially with the ball to tell issues, ethanol being one of them, there is a proven record for rail being much as a fur -- rail being much safer than the truck environment.
>> You have to identify the strategic places to start making the change and revitalizing the trains.
Have you identified with those places are in New York?
>> There are many places where we can set the blueprint up.
We also have to defer to private investors.
Investors like Joe Klein, to determine where those spaces are put in place is really the private sector.
We are working on developing the last about an actor.
-- the last-mile connected.
It is the core line to which Joe Klein is connected.
Those lines the be improved and upgraded.
-- those lines need to be improved and upgraded.
We need to have at the same as Pearse in place.
We want to set up a framework where business looking to locate in New York can go to an even more vibrant course.
>> Is the money there?
Is the federal government in particular -- it just has not invested.
>> There is far more conversation and actually some action, more of the passenger side.
There is some credit language going to Florida would actually give tax investment credits to buy Ralph, being discussed in Washington.
-- tax investment credits to freight rails, being discussed in Washington.
There and significant investments in rail even with no federal partners.
Interestingly, I give the question, should we be subsidizing or supporting a private company, a railroad company?
My question is, should we or should not be supporting the aviation history?
We have private airlines that operate freely provide money for the airports, the Ave.
-- we have a private airlines that operate.
We provide money for the airports, the airlines.
It can be a rational investment to be made it public dollars.
>>.
Starting to see a significant and credit growth in passenger -- we are starting to see a significant growth in passenger area.
>> It is exciting to see the growth, if you look at the Albany-to-Buffalo corner.
There is a 20% to 25% growth in ridership.
We are still seeing this growth.
The governor has expressed -- he is interested in improving the freight and passenger side of rail in the state.
Getting that is important to us and how it fits into his strategy.
>> You said there was a 25% increase in ridership from the Rochester Station?
I'm guessing that is linked directly to gas prices.
>> We have a surveys we've been talking about doing, but just from conversations on the train, it is heavily based on that.
It is also based on growing costs of air travel.
Some people are seeing the price skyrocket for air travel.
>> I know that train and air travel was at one point is equivalent for a ticket.
Is it shipping out?
-- Is it shifting now?
>> From Rochester it is pretty much is still a fair even have not.
-- a fairly even amount.
The New York market is seeing more and more people say, "well, what is the trade-off?"
Some people have told me that they do not like the pressure of wonder whether you'll be able to land.
>> Definitely.
Interest in passenger train.
I appreciate you -- definitely a renewed interest in the passenger train.
I appreciate you coming up.
Now I notice from the -- a note from the web.
WXXI has a complete elections web site.
Log on to www.wxxi.org/election.
We turn to politics now.
Dirty politics in particular.
In the past there have been misleading television commercials and attacks on a politician's personal life.
But there are new techniques where they're getting more savvy, the Internet.
Nicholas Difonzo is a professor of psychology at the Rochester Institute of technology.
His written a book about rumors called "the Watercooler Effect."
Thank you for joining us.
Has the web increased the number of rumors out there in general, and in particular campaign rumors?
>> Without a doubt the World wide Web has increased the speed by which rumors can proliferate, and reach of rumors.
They can go very far, very quickly.
We do not scientifically know whether or not the Web has caused rivers to become more numerous than they used to be -- has caused rumors to be more numerous than they used to be.
But as they become more popular and reach far and wide, they also present the potential for people to object to the rivers or to try to refute the rumors.
We know that it can degenerate, which it has in this case.
>> Presidential candidate Barack Obama in particular has taken on those rumors by setting up his own website to counter those rumors.
By he did not think he's doing a great job of capturing those rumors -- but you do not think he's doing a great job of countering those rumors.
>> I think he's doing a pretty good job.
I would give him a high b.
He is trying to give a point-by-point refutation of the rumors.
He was on cbn network just before the South Carolina primaries.
>> What would he need to do to get an a?
>> He needs to recruit and tout the third-party sources within the groups.
There was a pure research center's survey that not too long ago -- pew research center survey where there was a rumor, the rumor that he is a Muslim, which is a false rumor.
These groups tend to believe the rumor just slightly more than the national average.
Among these groups, I would recommend that he find perceive it-as-trusted spokespeople, and have them very slightly on his website.
-- very saliently on his website.
>> It is getting hard to figure out for the average person.
Someone sent out a fake maureen dowd column that she had not written, but it looks like she had written it and she was a credible source who had a fan who believe her.
Is this increasing the damage that can be done with a rumor in political campaign?
>> A lot of damage can be done with regard to rumors.
Often they take got that "authoritative source."
This is by a to the advent of the -- prior to the advent of the Internet as well.
They seem crafted.
But sometimes they just happened to arrive that way.
They seem to be offered by an authoritative source.
>> It is an old tactic given a new wings with the Internet basically.
>> That is correct, and people are aware, so normally when people see an e-mail account the normal course is to not check them.
But it seems plausible, people send them on to their friends, either out of concern or interest, or just because it seems to be the interesting thing.
>> This is a new aspect of their campaigns, something they have to put a lot of effort into.
>> They have to monitor it a lot more closely.
Obama has been doing and McCain has done some work in that regard.
They need to respond quickly because rumors that snowballed much more quickly than they used to.
In the blog is here, -- in the blogosphere, there is a misinformation clout that can spread.
>> I look forward to your book.
Thank you for being here.
It is time for the business section with the "Democrat and Chronicle."
Matt Daneman joins us from the "Democrat and Chronicle."
But before we hear from him, we have a clip of small business owner doubt that.
The costs are going up and that clientele is shrinking.
When it came time to raise prices last week, he decided to take a very direct approach.
>> This sign appeared in the window of O'Bagelo's last week.
The big as one of 25 cents per piece and there is less Friday.
-- that they also went up 25 cents per piece and there is less variety.
>> I am a little dog.
You fight real hard to stay alive.
When he thinks -- when you see things come about that you cannot control, and has a long impact.
>> Thank you for coming in.
We all see them in the grocery store, at the gas pump, and small business people are hurting.
How serious is it?
>> It is not just small business, it is big business, too.
There is consumer price inflation and wholesale prices going up.
There are rates recently that we have not seen in a number of years.
The Consumer Price Index, the stuff you and I buy, but in June, the biggest job in 80 years.
-- the biggest jump in the teenage years.
-- jump in 18 years.
You are looking at everybody getting hammered by higher and higher prices.
It boils down to the same sort of thing we've heard about and talked about here.
Food prices and energy prices.
Energy prices in a lot of guys are driving food prices up, too.
It comes out to oil.
>> You look at vito and he is at sea and end in sight.
-- and he does not see an end in sight.
>> It is getting more and more expensive.
Going into the winter, when you have heating oil at prices going up, too, it does not look like a good time real soon.
>> Another bit of bad news when we look at Rochester's jobless rate.
>> We lost 3100 additional jobs from to one year ago.
The and implement rate last year was 5.4% -- the added plummet rate last year was 5.4%.
The troubling thing with these jobless numbers is that this is the same time that Buffalo and Syracuse it numbers that are actually increasing.
And yet Rochester is still in the doldrums.
What is at having to it about is that there is not been as much seasonal employment.
>> Construction, Ruark, that sort of thing.
-- construction, roadwork, that sort of thing.
>> I would not be surprised if oil and consumer prices are pushing that too.
I am not sure why it is that Buffalo is doing pretty well, and that is the benchmark by which Rochester is judged.
The old.
A quite Mall, -- the old Irondequoit mall, there's been talk of redeveloping that for years.
The idea that incident a shopping mall, which is not working very well, -- instead of a shopping mall, which is not working for a walk, they are looking at condos, a hotel there, and street level shopping.
That sort of thing with housing built in, as opposed to a shopping mall.
The question is whether he can at the Capitol for this.
>> Thank you for coming in.
That wraps up this edition of "Need to Know."
I am Julie Philipp.
If you are on Facebook and want to learn about "Need to Know," look me up.
Next week we will have a report from Letchworth State Park.