U.S. RAILROADS FINED WHEN CARTELS HIDE DRUGS ON TRAINS

Union Pacific Refuses To Pay, Says It's Unable To Stop Smugglers

EL PASO, Texas - A border security program to X-ray every train
rolling into the country has prompted as much as $400 million in
fines against U.S. railroads, which are held responsible for the
pungent bales of marijuana, tight bundles of cocaine, and anything
else criminals cram into the boxcars and tankers as they
clickety-clack through Mexico.

Union Pacific, the largest rail shipper on the U.S.-Mexico border
and the largest recipient of fines, refuses to pay what now amounts to
more than $388 million in fines, up from $37.5 million three years
ago when the screening began.

In federal litigation the railroad argues that it's being punished
for something it cannot control: criminals stashing illegal drugs in
rail cars in Mexico.

'Our actions should be applauded, not punished,' said Vice President
Bob Grimaila. Union Pacific spends $3.6 million a year on its own
police officers and has spent an additional $72.5 million supporting
federal efforts on the U.S.-Mexico border, building observation
towers, training federal law enforcement officers, adding fencing
and lighting at border crossings and developing computer profiles to
identify drug traffickers.

The Justice Department also says Union Pacific, which owns 26 percent
of Mexico's railroad Ferromex, is responsible for controlling the
trains in Mexico. However, the railroad says it cannot be expected to
'send unarmed personnel into Mexico to battle Mexican drug cartels
that maliciously murder and wage a war against the Mexican military.'
The railroad's argument may be gaining traction: The federal
government recently signed a partial settlement with the railroad,
releasing 10 seized rail cars in exchange for $40,000, and agreed to
return to negotiations with the railroad, according to court records.
There was no admission of wrongdoing, and Union Pacific agreed to
remove any hidden compartments in the railcars.

In addition, the railroad's own commissioned police force is now
working with Mexican law enforcement, tracking back illicit
shipments to their source and targeting them.

Mexican army officials say that in March, using Union Pacific
information and U.S.-provided screening machines, they seized 1,350
tons of marijuana in two different tank cars on trains en route from
Aguaruto, Sinaloa to El Paso, Texas.