CN in agreement with Joliet over EJ&E acquisition

Canadian National Railway Co. said Monday it has reached agreement with Joliet, Ill., over the company's proposed acquisition of part of a railway company.

The company said the agreement settled Joliet's concerns over quiet zones and other issues surrounding CN's acquisition of a major portion of the Elgin, Joliet & Eastern Railway Co. CN said it will meet its promises within three years.

Gordon T. Trafton, a CN senior vice president, said the Joliet agreement would be the first of many between the company and cities along the Elgin, Joliet & Eastern line.

The federal Surface Transportation Board is considering CN's effort to gain control over the Elgin, Joliet & Eastern, a short-line railway owned by a subsidiary of United States Steel. This month, CN asked the regulators to make a final decision by Oct. 15, possibly approving the deal while an environmental review is pending.

CN announced last year it would pay $300 million for a major portion of the railway in northern Illinois and northwestern Indiana. The Canadian operator said the deal would let its trains bypass congested tracks in Chicago, and the city supports the sale.

But Chicago suburbs and cities in Indiana that would see an increase in rail traffic have raised safety and traffic issues.

U.S.-traded shares of CN fell 89 cents to $49.90 in midday trading.