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House Co-Sponsorship Memoranda
House of Representatives
Session of 2015 - 2016
Regular Session
MEMORANDUM
| Posted: | January 13, 2016 02:59 PM |
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| From: | Representative Jeffrey P. Pyle and Rep. John Taylor, Rep. William F. Keller, Rep. Robert F. Matzie |
| To: | All House members |
| Subject: | The Proposed Merger by Canadian Pacific Railway to Acquire Norfolk Southern Corporation |
| On November 9, 2015, Canadian Pacific (CP) Railway submitted an unsolicited proposal to the U.S. Surface Transportation Board (STB) to acquire through merger Norfolk Southern (NS) Corporation. CP has publicly stated that if it acquires NS then it would target approximately $1.8 billion in “synergies” that could result in significant employment cuts, asset reductions and potentially a poor freight-rail service to shippers doing business in Pennsylvania. So, in the near future, we will introduce a resolution directed to the STB to carefully review any plans submitted by CP to acquire NS. We also ask that the STB to view approval of any voting trust as triggering a domino effect that could soon after result in more mergers resulting just two major North American rail companies. We further ask that Congress review the rail industry's current antitrust exemption which prevents the U.S. Department of Justice (DOJ) from stopping the merger even if a review produces evidence of restricted competition and urge Congress to exercise regulatory control and oversight in order to maintain fair competition, adequate connections with short line railroads and efficient, low-cost service for rail shippers Pennsylvania ranks first in the country in the number of operating railroads. NS currently manages one of the largest railroad systems in the state with more than 5,200 Pennsylvania-based employees, over 2,300 route miles of track, 22 rail yards and other assets that contribute to the Commonwealth’s economy and interconnected transportation system. Please join us in supporting this important resolution regarding the proposed merger because of its potentially-negative impact to building a more efficient freight network in this Commonwealth. If you have any questions, please feel free to contact Eric Bugaile, E.D. for the House Transportation Committee, at Ebugaile@pahousegop.com. Thank you |
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| View Attachment | ||
Introduced as HR649