CN files suit to speed up EJ&E decision

The Canadian National Railway is hoping the federal courts will give it what the federal government won't in its battle to acquire the smaller Elgin, Joliet and Eastern railroad.

CN filed a lawsuit with the U.S. Court of Appeals in Washington, D.C., Thursday asking justices to force the Surface Transportation Board to rule on the merger with the EJ&E quickly. If CN doesn't get final approval from federal regulators soon, a deal with the EJ&E's owner, U.S. Steel, will fall through on Dec. 31.

Just recently, the transportation board denied a request from CN to divide the decision process in half by ruling on the business merits of the merger before the end of the year and deciding on environmental factors later.

CN's plan would reduce freight traffic on its tracks in Chicago and nearby suburbs so it's getting backing from municipalities that would benefit. But towns along the EJ&E that would see marked increases in freight traffic are fighting the merger along with many lawmakers.

"When Canadian National could not change the rules, they decided to change the referees," U.S. Sen. Dick Durbin said in a statement. "This is the kind of corporate sleight of hand which destroys any confidence Illinois communities have in this railroad."

But CN CEO Hunter Harrison countered that "given the substantial, wide-ranging public benefits of our planned acquisition of the EJ&E, we cannot permit regulatory delay to imperil this transaction."

CN spokesman Jim Kvedaras defended the company's latest actions while at a conference on train safety in Oak Brook. "There's too much at stake in benefits for the Chicago region for this to be held up by federal inaction," he said.

CN has asked U.S. Steel to extend its deadline past Dec. 31 with no luck, he added.