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Antitrust lawsuit against railroads dismissed
Associated Press ^
| March 1, 2013 4:24 PM EST
| Margery A. Beck
Posted on 03/05/2013 9:55:58 PM PST by Olog-hai
A federal judge has dismissed a lawsuit that accused Union Pacific and BNSF Railways of price fixing.
Oxbow Carbon & Minerals LLC said in its lawsuit that the two biggest railroads in the western U.S. worked to avoid direct competition with each other to keep rates high, and that Union Pacific has refused to ship coal from its Oxbows Elk Creek Mine in western Colorado to avoid competing with BNSF.
The lawsuit brought by Oxbow and six of its companies also said the railroads fuel surcharges arent based on actual costs and simply raise shipping rates.
But U.S. District Court Judge Paul Friedman said in an opinion Tuesday that Oxbow failed to present adequate facts to back their allegations of price fixing.
(Excerpt) Read more at bigstory.ap.org ...
TOPICS: Business/Economy; Crime/Corruption; News/Current Events; US: District of Columbia
KEYWORDS: antitrust; bnsf; oxbowcarbon; unionpacific
BNSF is Warren Buffetts railroad. I doubt that he engaged in price fixing.
posted on 03/05/2013 9:56:09 PM PST
posted on 03/05/2013 10:14:43 PM PST
(We must surrender only to our Holy God and never to the evil that has befallen us.)
Their strong Unions are in control of the facts.
posted on 03/05/2013 10:24:28 PM PST
Railroads are not the same as public highways, UP would have to lease track from BNSF if the customer doesn’t have track connecting to a UP owned track, that is, assuming that their business in territory only serviced by BNSF track. That would swamp any rate discount. I highly doubt UP would pass up the business if they thought it would be economically feasible for them and the customer.
posted on 03/05/2013 10:53:37 PM PST
(We are the producers, the creators. Grow it, mine it, build it.)
Union Pacific has refused to ship coal from its Oxbows Elk Creek Mine in western Colorado to avoid competing with BNSF.
Sounds like they are confusing The Octopus with The Oxbow Incident.
posted on 03/05/2013 11:59:27 PM PST
(Love me, love my guns!©)
The protagonist railroad in Octopus was taken over by Union Pacific in 1996, interestingly enough.
posted on 03/06/2013 12:04:50 AM PST
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