CN Seeks to Overturn Canadian Transportation Agency Decision to Hear Amended Running Rights Application of Ferroequus.Business Editors MONTREAL--(BUSINESS WIRE)--April 5, 2002 Canadian National (NYSE NYSE See: New York Stock Exchange :CNI) (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :CNR) said today it will launch a legal challenge to a Canadian Transportation Agency (CTA An abbreviation for cum testamento annexo, Latin for "with the will annexed." ) decision to hear an amended running rights application by Ferroequus Railway Company Limited (FE). CN will seek leave to appeal the CTA decision to Canada's Federal Court of Appeal on the basis that the CTA lacks jurisdiction to proceed with the FE amended application. The CTA said today it plans a public hearing on this application on April 29, 2002, in Winnipeg. CN said FE's amended application is an abuse of process. The CTA has twice set aside FE attempts to gain forced access to CN's network and customers - the first time in May 2001 because the agency lacked jurisdiction; the second time last month because of a flawed application. Now FE is mounting a third attempt with its amended application. FE is a "virtual railroad" with no network, no employees, no locomotives and no rolling stock. Its running rights application is an attempt to enter the rail business, not by investing in its own network, but by "cherry-picking" CN traffic through regulatory means. FE's request, if granted, would effectively permit the expropriation The taking of private property for public use or in the public interest. The taking of U.S. industry situated in a foreign country, by a foreign government. Expropriation is the act of a government taking private property; Eminent Domain is the legal term describing the of a key segment of CN's network in Western Canada by a company that did not build it, does not maintain it and is not responsible for upgrading the service it provides. The danger is that forced access would threaten the survival of low-density sections of CN's Canadian network, undermine future rail investment by CN and potentially require the return to taxpayer subsidization of Canadian railways. Deregulation Deregulation The reduction or elimination of government power in a particular industry, usually enacted to create more competition within the industry. Notes: Traditional areas that have been deregulated are the telephone and airline industries. of Canadian railways has benefited shippers substantially, providing them better service, lower rates and competitively strong rail industry. Canadian National Railway Company Canadian National Railway Company (NYSE: CNI, TSX: CNR) is a Canadian rail transportation company that operates the Canadian National Railway. It was created in December, 1918 as a Crown corporation of the Government of Canada to nationalize several bankrupt rail systems spans Canada and mid-America, from the Atlantic and Pacific oceans to the Gulf of Mexico Noun 1. Gulf of Mexico - an arm of the Atlantic to the south of the United States and to the east of Mexico Golfo de Mexico Atlantic, Atlantic Ocean - the 2nd largest ocean; separates North and South America on the west from Europe and Africa on the east , serving the ports of Vancouver, Prince Rupert, B.C., Montreal, Halifax, New Orleans, and Mobile, Ala., and the key cities of Toronto, Buffalo, Chicago, Detroit, Duluth, Minn./Superior, Wis., Green Bay, Wis., Minneapolis/St. Paul, Memphis, St. Louis, Jackson, Miss., with connections to all points in North America. |
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