U.S. regulators open hearings on the fate of future rail mergers

WASHINGTON, D.C. (March 8, 2000) Ð The U.S. government opened four days of hearings on the railroad business yesterday to investigate how to handle consolidation in the industry.

Facing the prospect of the merger of Canadian National and Burlington Northern Santa Fe, a deal that would create North AmericaÕs largest rail network, the U.S. Surface Transportation Board will hear testimony from about 160 witnesses, many of them customers worried that mergers are hurting competition and causing severe service disruptions.

The outcome of this week’s hearings is expected to determine whether the STB should take a tougher stand on approving rail mergers. STB Chairwoman Linda Morgan has expressed concern that the combination of CN and Burlington Northern will provoke the remaining railroads to rush into a new round of consolidation and eventually leave the country with only two giant railroads.