Montana Grain Group Opposing Bn Merger
The Montana Wheat and Barley Committee says it has filed a protest against Burlington Northern Railroad’s proposed merger with Santa Fe Pacific Railway.
The committee said it was prompted by BN pricing schemes that gouge Montana shippers, captives because BN has no competition in Montana.
Wheat can be shipped from Alliance, Neb., to Portland, some 1,471 miles, for $278 less per hopper car than from Billings, only 992 miles from Portland, the committee said. BN has competition in Nebraska.
The committee said its protest was filed with the International Commerce Commission earlier this month.
Fred Elling of Rudyard, committee chairman, said BN already is funding costs of the proposed merger by “sticking it to Montana, and because we have no alternative we will be forced to pay the bill.”
A class action suit against BN’s rate charges in Montana was filed in 1980. Known as the McCarty Farms suit, it remains unresolved.