OMAHA, Neb. — Union Pacific wants a court to invalidate an 1872 pact requiring it to keep a certain number of jobs in an East Texas town indefinitely.
The agreement with the town of Palestine, which has been amended several times over the decades, is a vestige of railroad history that was made by one of the railroads Union Pacific bought years ago. The lawsuit challenging the agreement was filed Wednesday in Texas.
The railroad argues the local agreement is invalid because railroads are regulated by the federal government, and this deal requiring jobs be maintained in Palestine improperly limits its options.