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Union Pacific sues to nullify old jobs pact with Texas city

Omaha, Neb. — Union Pacific wants a court to invalidate an 1872 pact requiring it to keep a certain number of railroad jobs in the Texas town of Palestine indefinitely.

The agreement has been amended several times over the decades and is a vestige of railroad history 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 agreement is invalid because railroads are regulated by the federal government, and this deal requiring jobs be maintained in Palestine improperly limits its options.

Palestine City Manager Leslie Cloer says she hasn’t seen the lawsuit, but she hopes Union Pacific will maintain its operations in Palestine.

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