FOR RELEASE
Contact: Dennis Watson
07/24/98 (Friday)
(202) 565-1596
No. 98-45
FIRS 1 (800) 877-8339
www.stb.gov


PUBLIC & MEDIA ADVISORY: SURFACE TRANSPORTATION BOARD ANNOUNCES RECEIPT OF "CANADIAN NATIONAL-ILLINOIS CENTRAL RAILROAD" RAILROAD CONTROL APPLICATION; OUTLINES OPTIONS AVAILABLE FOR PUBLIC EXAMINATION, COPYING OF APPLICATION



Surface Transportation Board (Board) Chairman Linda J. Morgan announced today that on Wednesday, July 15, 1998, the Canadian National Railway Company, Grand Trunk Corporation, and Grand Trunk Western Railroad Incorporated (collectively referred to as “CN”), and Illinois Central Corporation, Illinois Central Railroad Company (ICR), Chicago, Central and Pacific Railroad Company, and Cedar River Railroad Company (collectively referred to as “IC”) [FOOTNOTE 1: CN and IC are referred to collectively as "Applicants."] filed an application with the Board seeking authority for the acquisition by CN of control of IC.


Filed with the Board in the case entitled Canadian National Railway Company, Grand Trunk Corporation, and Grand Trunk Western Railroad Incorporated--Control--Illinois Central Corporation, Illinois Central Railroad Company, Chicago, Central and Pacific Railroad Company, and Cedar River Railroad Company, STB Finance Docket No. 33556, the application is the second major railroad consolidation transaction (the “CSX-Norfolk Southern-Conrail” merger proposal was the first) presented to the Board under the Interstate Commerce Commission Termination Act (ICCTA). The application is comprised of 5 paperbound volumes [FOOTNOTE 2: Volume 1 of 4 contains supporting information, summary of benefits, exhibits, statement of the applicants’ principal officers, other supporting statements, and a related application, Finance Docket No. 33556 (Sub-No. 1). Volume 2 of 4 contains traffic studies, an operating plan, a labor-impact statement, density charts, and supporting statements. Volume 3 of 4 contains statements of shippers, public officials, and others in support of the application. Volumes 4A and 4B of 4 contain agreements, Form 40-Fs, Form 10-Ks, Form F-4, Schedule 14D-1, and annual reports.] representing over 3,000 pages of text (also available on computer disks) and supporting information. The Board will review the application and a record will be developed according to a procedural schedule that will be established, assuming that the Board accepts the application as complete and so announces 30 days after the July 15, 1998 filing date, according to Section 1180.4(c)(7) of Title 49, Code of Federal Regulations [49 CFR 1180.4 (c)(7)].



Railroad mergers, such as the CN-IC proposal, require review and approval by the Board to ensure that the public will continue to receive adequate transportation services, that competition will not be harmed unduly, that employees will be afforded appropriate protection, and that environmental issues are fully addressed. The Board’s review of major rail mergers extends beyond assessing potential anticompetitive effects to considering potential economies and efficiencies in the national rail system that could result from such transactions. Other, additional factors that the Board is required to address include the effect of the proposal on essential services provided by other railroads in the pertinent region, the financial viability of the consolidated carrier, the effects of the proposal on railroad employees, and whether other railroads should be included in the transaction. The Board’s merger review procedures will afford all interested persons the opportunity to participate fully, as required by the Administrative Procedure Act, the ICCTA, and ICCTA implementing regulations.



The following options are available to the public for inspection and copying of the application:



2. COPYING.


B. Paper copies.



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