The Changing of the Guard

Abstract

This chapter examines the changing of the guard at Union Pacific Railroad following its merger with Southern Pacific Railroad. The first major piece of business for the new Surface Transportation Board was the Union Pacific–Southern Pacific merger. The size of the two railroads ensured that it would be a complicated process. Although Burlington Northern Santa Fe had been appeased with trackage rights, other railroads wanted a piece of Southern Pacific as a condition for not opposing the merger. The Texas Railroad Commission voted 3–0 to oppose key provisions of the merger. Meanwhile the return of Union Pacific Corporation to its roots in transportation took another major step in September 1996 when the company completed its spinoff of Union Pacific Resources by distributing the remaining 83 percent of its stock to Union Pacific stockholders.