Judge allows Union Pacific to break 149-year-old contract with Palestine The City of Palestine moved on Tuesday to file an initial response to a lawsuit involving Union Pacific. (Source: KLTV News) By Stewart Smith | February 5, 2021 at 11:53 AM CST - Updated February 5 at 2:38 PM
TYLER, Texas (KLTV) - A federal judge in Tyler has ruled that Union Pacific Railroad is no longer bound by old contracts with the City of Palestine.
In 1872, Union Pacific entered into a contractual relationship with the City of Palestine and Anderson County, wherein Union Pacific agreed to run its rail line to and through Palestine, while also agreeing to “locate and establish and forever thereafter keep and maintain” its “general offices, machine shops and roundhouses” in Palestine. The City of Palestine for their part promised to raise $150,000 in bonds for the railroad from the citizens of Anderson County.