By Karen Gleason
The 830 Times
County commissioners court members have postponed action on sending a letter to the Surface
Transportation Board opposing the planned merger of two of the nation’s largest railroad
companies.
Val Verde County Commissioners Court members discussed the issue during their December
regular term meeting Wednesday. Commissioner Pct. 1 Kerr Wardlaw requested the court discuss
the potential submission of a letter to the Surface Transportation Board opposing the proposed
merger between Union Pacific Railroad and Norfolk Southern Railroad.
Union Pacific announced in July it had reached an agreement to acquire Norfolk Southern and
touted the deal as creating the country’s first transcontinental railroad. The merger is under
review by the Surface Transportation Board, an independent federal agency with regulatory
oversight of the country’s railroads.
Wardlaw told the court he had received a letter opposing the proposed merger of the two railroad
companies and noted, “They have 54 legislative leaders from 24 states, six trade organizations,
18 senators, because it will reduce competition and trade.”
Wardlaw also said he participated in a webinar hosted by the U.S. Council on Foreign Relations
concerning the U.S. agricultural policy outlook with Joseph Glauber, senior research fellow at
the International Food Policy Research Institute.
Wardlaw said, “I asked him what his thoughts (on the merger) were, and he said yes, (the price)
of agricultural products would go up, as well as all products that move on the trains. Our
consumer costs will go up because of the merger.”
Wardlaw said he could answer any questions other members of the court might have about the
issue.
County Judge Lewis G. Owens Jr. said, “So it would be the merger of Union Pacific and Norfolk
Southern, which is an $85 billion merger, that would have 50,000 route miles put together that
would cross 43 states, and it would link 100 ports together. There are two major unions that are
against it, the Brotherhood of Locomotive Engineers and Trainmen is one, but the largest union
is actually for it, and I think it’s picked up the support of the Oval Office. President Trump is
supporting the merger.”
Owens said two other major rail companies, BNSF and CSX, also oppose the merger, but added
the court only needs to take a vote to send the letter.
Owens said, “There are pros and cons on both sides. . . so whatever you all want to do.”
Commissioner Pct. 4 Gustavo “Gus” Flores asked, “This merger, there’s nothing illegal about
it?”
Owens replied, “One of the major concerns is what Commissioner Wardlaw said, is there going
to be a monopoly? The federal government has not given their blessing yet on the merger itself.
They are going through that process right now. Like I said, one of the largest unions is for it and
on the 22 nd, it said President Trump – what it said was ‘the Oval Office’ – gave their stamp of
approval, and I don’t know how much weight that carries, but the federal government has not
officially said okay. They are looking as to whether it would create a monopoly.”
Commissioner Pct. 2 Juan Carlos Vazquez asked, “So they’re looking into it right now, judge?
Studies and so on?”
“They’re doing that, yes,” Owens said.
“Do we have to take any kind of action right now?” Flores asked.
“It’s up to you,” Owens replied.
“Maybe see how it plays out and later on make that decision,” Flores added,
Owens said, “It’s up to you all, whatever you all want to do.”
Vazquez said, “What do you think, Commissioner Wardlaw?”
Wardlaw responded, “It also says here (in my research) that the last time the Union Pacific
Railroad merged was with Southern Pacific, and I’m sure you all remember that, it cost the Texas
economy nearly $1 billion, and that would be close to $2 billion in today’s money.”
Owens reiterated the federal government is looking to see whether or not the merger would
create a monopoly.
Vazquez then made a motion the item be tabled and brought back before the court after more
research. Wardlaw gave the second, and the court unanimously approved the motion to table.
The writer can be reached at delriomagnoliafan@gmail.com
