TTSI Resume 9




During 1995 Short Line expanded from limited specialty and
movie operations to regularly scheduled passenger excursions
and dinner train operations. The 1996 schedule featured excursions
every Sunday beginning in February, Murder Mystery and Hollywood
Express dinner theater trains were inaugurated on Saturday nights
during the spring and fall and Saturday night Bar-B-Que trains
during the summer. Movie business continued to be a revenue mainstay.
The end of 1996 saw a major change in the company. Mr. David
Wilkinson purchased the Fillmore and Western Railway Co. and
the Short Line Enterprises name from the corporation. This sale,
entered into in November of 1996 was completed in January of
1997. Mr. Garner, one of the company’s founders, agreed to remain
with the new company to handle the movie business, certain operating
requirements and as a general consultant.

After the sale, three of the four Shareholders in Short Line
Enterprises, Inc elected to redeem their stock for cash. Logan
S. Garner became the sole shareholder of Short Line Enterprises,
Inc. The terms of the sale required the Company give up the Short
Line Enterprises name. After considering several alternatives,
including a return to SLE,Inc., the name was changed to The Train
Source, Inc. on December 1, 1997.

During the final stages of the sale the Company became involved
in a project to operate a special train for a rock band using
private cars operating on Amtrak routes. This was a new direction,
offering opportunities not previously available. As part of this
project, the Company was working with Mark L. Dees, a good friend
and private car owner who kept a baggage/lounge car at the railroad
in Fillmore. Mark was killed in a tragic accident in December
of 1996. Mr. Garner continued to work with the Dees estate until
the project was cancelled. Based on further interest in this
type of project the Company went ahead and bought former Canadian
Pacific Baggage Express car #4210, PPCX 800320 Pony Express,
from the Dees Estate on June 22, 1997.

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