(The Associated Press circulated the following article on March 6.)
BURLINGTON, Iowa — Burlington Northern Santa Fe Railway Corporation says a 1985 contract it signed with the City of Burlington did not require the company to keep its principal repair shops in the eastern Iowa city.
Stung by a series of layoffs, the city sued the company one year ago after the railway eliminated 258 jobs in January 2003 and transferred 130 more jobs to other U-S locations.
The city claims the railroad violated an 1858 contract, which allowed the railroad to use riverfront property for free as long as it maintained its principal shops in the city.
The city is hoping the railroad finds it less costly to move jobs back to Burlington than to pay up 146 years of back rent.
The railway, in court documents, says a 1985 contract signed with the city overrides the earlier agreement and does not mention keeping jobs in Burlington.
The company has asked a federal judge to dismiss the case and order the city to pay its legal fees.