[Congressional Record Volume 142, Number 77 (Thursday, May 30, 1996)]
[House]
[Page H5653]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




     IMPACT ON AGRICULTURE OF UNION PACIFIC-SOUTHERN PACIFIC MERGER

  (Mr. STENHOLM asked and was given permission to address the House for 
1 minute and to revise and extend his remarks.)
  Mr. STENHOLM. Mr. Speaker. I rise to express my deep concern 
regarding the proposed merger between the Union Pacific and Southern 
Pacific Railroads which is under consideration by the Surface 
Transportation Board.
  If approved, this merger would be the largest rail merger in the 
history of the United States. It will result in only two railroads 
controlling the entire western half of the Nation. This massive 
consolidation of rail transportation could hurt competition in the rail 
industry, and ultimately, hurt farmers, ranchers, and shippers in the 
agriculture industry.
  It is no secret that rail service is critical to the economic well-
being of this Nation's agricultural and rural economies. Nearly half of 
all grain produced in the United States moves to market by rail. In 
fact, in 1995, grain, grain mill products, and other farm products 
accounted for more than 2.14 million rail loadings.
  The very survival of farmers and ranchers depends on their ability to 
ship commodities at a competitive price and in a timely fashion. Access 
to reliable, cost-effective rail transportation is the only way they 
can remain competitive in markets here and overseas. With this proposed 
merger, they may not have that critical access.
  With this merger, competition for rail transportation of agricultural 
products will be eliminated in some areas. With reduced competitive 
transportation options, agricultural shippers could be faced with 
higher rates and prices for rail services.
  Farmers and local shippers in many rural areas will become captive 
customers, totally dependent on only one carrier to supply grain cars 
and ship to distant markets.
  The proposed merger seems to be on a dangerous fast track. As the 
Surface Transportation Board considers this merger, we must urge them 
to consider all alternatives to monopoly and duoploy.

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