ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Saturday, November 23, 1996 TAG: 9611250151
SECTION: BUSINESS PAGE: A-7 EDITION: METRO
DATELINE: WASHINGTON
SOURCE: Associated Press
Eleven members of Pennsylvania's congressional delegation and one from New Jersey urged Conrail and its potential merger partners Friday to retain the company's headquarters in Philadelphia.
Richmond-based CSX Corp. has proposed a merger with Conrail, and Norfolk Southern Corp. is seeking to derail the deal by making a hostile takeover bid. CSX has promised to remain in Philadelphia and to retain most of Conrail's executives, promises that Norfolk Southern, based in Norfolk, has not made.
The letter sent to Conrail chairman David LeVan, CSX chairman John Snow and Norfolk Southern chairman David Goode makes a case for staying in the city.
``Philadelphia makes the most sense for the corporate and operating headquarters for the new railroad,'' Rep. Tom Foglietta, D-Philadelphia, wrote in the letter signed by 10 colleagues. ``The Port of Philadelphia is centrally situated within easy rail access throughout the critical Northeast, Southeast and Midwest.''
Federal law requires that Conrail have its headquarters in Philadelphia, but questions remain over whether the provision would apply to a new Conrail. The new company also could get around the requirement by keeping a skeletal staff in Philadelphia and retaining a headquarters in name only.
Other members who signed the letter were Sens. Arlen Specter and Rick Santorum, R-Pa.; Reps. Robert Borski, Chaka Fattah, Tim Holden and Paul McHale, D-Pa.; Reps. James Greenwood, Curt Weldon, Jon Fox and Joseph McDade, R-Pa.; and Rep. Robert Andrews, D-N.J.
LENGTH: Short : 38 lines KEYWORDS: 2DAby CNB