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 The letter sent to the Surface Transportation Board raised
concerns over the impact it could have on railroad jobs in
Pennsylvania and said the merger could lead to "disinvestment" in
rail infrastructure in the state.
Senator Bob Casey and five members of the U.S. House of
Representatives, all Democrats, also wrote that they were deeply
concerned about the voting trust structure Canadian Pacific has
proposed in its bid for the No. 4 U.S. railroad.
The Canadian company in mid-November disclosed its $28 billion offer
to buy the Norfolk, Virginia-based railroad.
Norfolk Southern has rejected Canadian Pacific's advances, setting
the stage for a possible proxy battle.
 The Surface Transportation Board would have to review a merger of
the two railroads, which would be a test case since the regulator
rewrote the rules for approving takeovers in 2001. The review
process would include public hearings where rail customers, labor
groups and elected officials would be allowed to weigh in.
In their letter, the Pennsylvania Democrats wrote that they believe
the acquisition could hurt thousands of rail shippers, manufacturers
and local communities, as well as rail workers, in the state, and
urged a thorough review of any proposed merger.
Canadian Pacific has said that a takeover of Norfolk Southern would
lead to $1.8 billion in annual savings.
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In early January, two senior Democrats in the U.S. House of
Representatives urged the board to reject any merger of Canadian
Pacific and Norfolk Southern.
A number of industry groups and rail customers, plus a couple of the
unions representing workers at Norfolk Southern have also come out
against any merger.
Last week, the board posted letters from some rail customers who
argue that, on the contrary, a merger of Canadian Pacific and
Norfolk Southern would create a transcontinental railroad that would
result in better service.
(Reporting By Nick Carey; Editing by Jonathan Oatis)
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