Railroads, coal suppliers to challenge merger moratorium in court

MONTREAL (May 8, 2000) — Canadian National Railway, Burlington Northern Sante Fe, and the Western Coal Traffic League filed a court brief challenging the legality of the 15-month merger moratorium imposed by the U.S. Surface Transportation Board on March 17.

Canadian National said the moratorim is unlawful because the board is required by Congressional mandate to review common control applications under strict deadlines.

The moratorium has stalled regulatory approval of a merger application filed by Canadian National and Burlington Northern which would result in a new company, North American Railways Inc., which would operate 500,000 route-miles of track in the U.S. and Canada.

Arguments will be heard by the district appeals court in Washington, D.C., on June 13.