Opinion | Bondon: Missourians Should Not Trust the Union Pacific Merger

As Cass County Auditor, I evaluate what is truth when determining what’s in the best publicinterest before I publicly speak against an issue.  With that oath, I step forward to address the seriousness of Union Pacific’s proposed $85 billion acquisition of Norfolk Southern.

While UP touts this merger is good for our great state, I hope you’ll pardon me for being a Missourian by asking; “show me?”

When I see the approach Union Pacific has taken to move this merger forward, the Auditor in me demands more transparency.  After all, this proposal would result in one company operating half of the U.S. rail network further controlling the impact to our freight movement, items like food, clothing, energy and much more.

I am not alone though.

Our Congressman, Mark Alford, expressed concerns in a letter with 47 of his Congressional Republican Caucus colleagues.  It is not a partisan issue, there are many bipartisan concerns, state legislative leaders concerns, rail customers concerns, opposition by the American Farm Bureau Association, and worries from state Agricultural Leaders, including Missouri’s.  And then there is MoDOT’s unease .

Why are so many of us who are watching this billion-dollar purchase concerned?  BecauseUnion Pacific’s argument for why this is good for Missourians and Americans just doesn’t make economic sense.  Worse than that, their justification seems to change every time it comes under scrutiny.

Again, it isn’t only me noticing this inconsistency.

In January, the Surface Transportation Board – the federal regulator reviewing the proposal, unanimously rejected the companies’ original application as incomplete.  A revised application was accepted in May, but the Board still found several aspects unclear, underdeveloped, and sought additional information before the review could proceed.

Recently, STB Board member Richard Kloster shared: “There has been a lack of transparency and depth in the application.”  He added, the Board should not have to “sift through vague language” to identify deficiencies and possible safeguards.  Neither should our communities.

And what does this mean for you and me?

Start with the railway workers based in our towns.  In a move of political theater, Union Pacific has claimed that the merger has support from “the majority of unions representing Union Pacific and Norfolk Southern employees.”

Just. Not. True. Unions representing over 70% of the combined Union Pacific and Norfolk Southern work force see through the promised ‘jobs for life’ and oppose the merger.  The data requested by the STB shows Missourians will lose railroad jobs.

Then there is the issue of public disruptions. This one particularly resonates with me because of its effect on our communities like Pleasant Hill that experience heavy Union Pacific traffic every day.  When Federal Railroad Administration records show UP has more than double the number of blocked crossing complaints than any other railroad, we need to know the specifics.

The pages of application documents from UP only leave us with more questions about train traffic and length of trains than answers.

It appears, Union Pacific will run at least two new train services through our communities, and multiple new trains per day. And it remains unclear the length of the trains, and the disruption it may cause especially because their filings to investors and their filings in our communities simply don’t match.

The Auditor in me is asking these questions for you, yet again, don’t take my word for it.

Seven state attorney generals’ – including those from Missouri’s neighbors Iowa and Kansas—have argued that the applicants have not shown the merger would serve the public interest or enhance rail-to-rail competition.  Missouri Attorney General Hanaway has also made her intent known to take a harder look at UP’s claims.  They warned that reduced competitive options could increase costs for businesses and raise prices for consumers.

That’s the point. This is why as a Show-Me-State Auditor I say Union Pacific has not earned our trust.  UP has yet to Show Me how this proposed merger is not bad for you and our community. For me, more control by one company can only negatively impact us and is bad for Missouri.

Jack Bondon

Jack Bondon serves as the Elected Auditor of Cass County, Missouri for four years. Prior to that, Bondon served 3 terms as the State Representative for the Missouri House 56th District, where he was the chairman of the House Financial Institutions Committee.