Judge: Union Pacific allowed to break contract with Palestine
A federal judge ruled Wednesday that Union Pacific Railroad is no longer bound to its 149-year-old contract with the City of Palestine and Anderson County.
County officials called the move a blow to local railroad workers and the local economy, effectively gutting the future of the railroad jobs in the area.
Through the original 1872 contract, Union Pacific agreed to establish a railroad hub in Palestine with offices, machine shops and roundhouses. The contract also stipulated that Union Pacific will retain a facility and certain number of employees in Palestine – currently set at 65. In return, the city agreed to raise $150,000 in bonds for the railroad.
United States Federal Judge for the Eastern District of Texas Jeremy Kernodle denied the city of Palestine’s motion to dismiss Wednesday, Feb. 3.
Read more: https://www.palestineherald.com/news/judge-union-pacific-allowed-to-break-contract-with-palestine/article_8310453e-67ee-11eb-b46d-8f1c1137df5a.html
