Court won't stall CN merger with EJ&E

A Washington, D.C., appeals court Thursday denied attempts by Barrington, Aurora and other towns to delay the merger of CN and the EJ&E railroads, which may cause changes in freight traffic soon.

The towns "have not satisfied the stringent standards required for a stay pending court review," justices wrote.

The implementation date of the merger was set for Friday but that doesn't mean the battle is over, opponents of the transaction said.

"We are disappointed the court denied the stay but we plan to continue with the appeal process," Barrington Mayor Karen Darch said.

But Buffalo Grove Trustee Jeff Berman countered the merger would "create a more efficient transportation system not only for our community but the entire region."

A CN official told the village Monday the railroad would begin moving some trains onto the "J" shortly after the transaction is completed, Berman said.

The U.S. Surface Transportation Board on Dec. 24 approved CN's purchase of the EJ&E, which runs in a semicircle between Waukegan and Gary, Ind., saying it was in the public interest.

CN wants to move freight trains from its lines in Chicago and nearby suburbs onto the "J," a relatively quiet railroad. The move would reduce a bottleneck in the city, officials contend.

Not surprisingly, municipalities such as Barrington located by the EJ&E fought the plan, raising fears about traffic, hazardous spills, pollution and noise.

Attorney Richard Streeter, who represents The Regional Answer to Canadian National - a coalition of communities against the merger, said the court's decision wasn't surprising and wouldn't affect a pending appeal. "I do think the STB's decision was lacking," he said.

CN stated it was eager to move forward with the transaction and intends to close the purchase of the EJ&E from U.S. Steel Friday or shortly after. The merger "will bring real rail relief to the congested lines through and around Chicago," CN executive Karen Phillips said.

Also Thursday, local lawmakers introduced policy in Congress aimed at promoting the STAR line, a future suburb-to-suburb commuter system intended to travel partly on the EJ&E that has met some resistance from CN. "We're going to bat for it," said Matt Vriesema, a spokesman for U.S. Rep. Peter Roskam of Wheaton.

Elected officials, including Democrat Rep. Melissa Bean and Illinois Democrat Sen. Dick Durbin, have said the project "has untold negative consequences on communities in our region."

Nearly a dozen parties joined in the motion, including DuPage County, Naperville and Aurora. They said they feared the expected tripling of Canadian National traffic from a few trains a day to 15 or more, some 14,000 feet long, would pose safety risks and snarl traffic. Their filing followed similar petitions filed by the Barrington and Will County.

Associated Press contributed to this report.