CN won't appear at Tuesday's congressional public hearing

Canadian National officials won't be answering questions about their proposed purchase of the Elgin, Joliet and Eastern Railway Co. before members of the Illinois Congressional delegation Tuesday.

In a letter to U.S. Rep. Melissa Bean, CN President and CEO E. Hunter Harrison declined the invitation to appear at the public hearing in Chicago because he said the lawmakers are unwilling to consider the deal's benefits.

Harrison said CN has met with Bean and her staff multiple times to explain its stance.

"Yet, you and your Congressional colleagues who will be holding the hearing have been consistently outspoken in your opposition to this transaction, and, so far as we can tell ... unwilling to acknowledge in a positive way any of CN's efforts or the benefits this transaction would provide to rail customers and to dozens of the communities in the region," Harrison wrote.

Bean had no immediate comment on the letter.

But in a related move Thursday, the Barrington Congresswoman, along with fellow Illinois U.S. Reps. Judy Biggert of Hinsdale, Bill Foster of Geneva, Don Manzullo of Ogle County and Peter Roskam of Wheaton, as well as Rep. Peter Visclosky of northwest Indiana, took another step toward trying to block the deal.

They proposed legislation to give more consideration to the impacts of railroad transactions on local communities.

"The current process puts the interests of industry over those of American families and taxpayers," Bean said in a prepared statement. "This legislation provides balance and better reflects American values by protecting the rights of our constituents and communities."

The bill would require the U.S. Surface Transportation Board to reject an acquisition if its adverse effects on safety outweigh its benefits.

CN wants to pay $300 million to buy the EJ&E, which runs in an arc from Waukegan to Gary, Ind. CN wants to use the line to reroute some freight traffic from congested Chicago and inner suburban lines.

Last week, the Surface Transportation Board released a draft environmental impact study on the proposal.

Several congressmen who oppose the deal are hosting Tuesday's meeting to gather input from groups like IDOT, Metra and affected towns.

Bean, Biggert, Foster, Manzullo and Roskam have all come out against the deal, with U.S. Reps. Mark Kirk of Highland Park and Jan Schakowsky of Evanston endorsing the transaction.

A Bean spokesman said the hearing at the Dirksen Federal Building will go on Tuesday without CN's appearance. A time hasn't been finalized.

Officials said all statements made Tuesday will be included in the final environmental impact statement. That should be released between Dec. 1 and Jan. 31.

The board has also scheduled a host of meetings for the public to weigh in: Aug. 26 in Mundelein, Aug. 27 in Barrington, Aug. 28 in Bartlett and Sept. 9 in Aurora.

In the letter to Bean, Harrison said CN will participate in those meetings, and will also work with towns along the line to address specific concerns.

CN has offered to pay about $40 million toward offsetting the impact of increased freight trains in some towns, a sum opponents call insufficient.

Illinois Sens. Barack Obama and Richard Durbin have also voiced opposition to the deal.

Thursday, Durbin, Bean, Foster, Manzullo and Roskam met with transportation board Vice Chairman Frank Mulvey to discuss the environmental impact study and upcoming public hearings.

"We were trying to understand their process," Durbin said, "but also let them know how important this decision is."

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