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U.S. NEWS Thursday 3 OcTOber 2019

Lawsuits: Nation’s biggest

railway companies fixed prices

By REBECCA BOONE tion industry, that they were ment systems have made
BOISE, Idaho (AP) — More legal and simply intended railroads more efficient,
than two dozen major to recover the skyrocketing bringing significant ben-
companies ranging from cost of fuel at the time. efits to consumers because
Campbell’s Soup to Kia In one of the lawsuits, filed businesses can order just
sued the nation’s four big- Monday by The Amalgam- what they need when they
gest railway companies, ated Sugar Co. in Boise, need it, said Kenneth But-
contending they had a Idaho, attorneys said the ton, a professor in the Schar
price-fixing scheme to ille- scheme began roughly 16 School of Policy and Gov-
gally boost profits. years ago amid declining ernment at George Mason
In the lawsuits filed Monday rail rates. At the time, the University. In this July 20, 2017, file photo, a Union Pacific Railroad Com-
around the U.S., the com- four railways controlled “In retail you get greater pany employee stands on a locomotive in Council Bluffs, Iowa.
panies said BNSF Railway about 90% of all rail freight reliability. Everyone knows Associated Press
Co., CSX Transportation traffic in the U.S., according when their stocks are com-
Inc., Norfolk Southern Rail- to the lawsuit. ing in,” Button said. “All that eral prices they are pay- across the transportation
way Co. and Union Pacific Attorneys for the sugar big data has brought down ing.” industry, Button said, par-
Railroad Co. conspired to company wrote that the for the consumer the gen- Fuel price surcharges occur ticularly during fuel crises.q
boost prices starting in 2003 four railways had meet-
by imposing coordinated ings, phone calls and email
fuel surcharges, ultimately communications through
pocketing billions of dollars which they embarked on
in profits. the conspiracy to apply
The price-fixing allegations the fuel surcharges to gen-
have been making their erate profits.
way through U.S. courts for “Prior to conspiring, defen-
years, with several compa- dants operated as busi-
nies filing similar lawsuits in nesses should: They actively
2007. competed against each
Attorneys then sought class- other over rates generally
action status on behalf of and with respect to fuel re-
16,000 shippers against the covery mechanisms to the
four railroads, but earlier this benefit of their customers,”
year a U.S. appellate judge the lawyers said.
said the cases would have Congress largely deregu-
to be brought individually lated railroads in 1980. Over
or broken down into groups the next several years, rail-
of similar shippers with simi- way companies consoli-
lar situations. The deadline dated, eventually leading
for filing those individual to the four big railroad ship-
cases was Monday. pers _ BNSF and Union Pa-
An attorney for Union Pa- cific serving much of the
cific Railroad declined to West and CSX and Norfolk
comment and attorneys for Southern in the East.
the other three railways did Though the companies are
not immediately respond individual entities, they are
to requests for comment. legally allowed to work to-
In previous stages of the gether to some degree to
lawsuits, the railroads have ensure the continuity of the
generally contended that nation’s railroad network.
fuel surcharges are com- Today, improved technol-
mon across the transporta- ogy and data manage-