By Josh Mitchell Of DOW JONES NEWSWIRES WASHINGTON -(Dow Jones)- The chief executives of CSX Corp. (CSX) and Union Pacific Corp. (UNP) warned Wednesday that the industry would scale back hiring and infrastructure spending if shippers succeed in pushing through tighter regulations. CSX CEO Michael Ward, speaking at a hearing by the federal agency that regulates the industry, said he has "grave concern" that proposed regulatory changes pushed by rail customers would cut into industry profits and scare off investors. "Any action by this board to limit long-term freight-rail movements and force the opening of our private networks would artificially constrain profits and scale down our investment plans and job creation," Ward told the Surface Transportation Board. Union Pacific CEO James Young said Wall Street investors have voiced concerns about the proposed regulations. "Shareholders are very aware of this proceeding and its implication," Young said. Rail customers, including farmers, coal companies and manufacturers, have long argued for tighter regulation of the freight-rail rates, contending that industry consolidation in recent decades has left the industry in the hands of a few major railroads that use excessive market power to charge exorbitant rates. -By Josh Mitchell, Dow Jones Newswires; 202-862-6637; joshua.mitchell@dowjones.com
