PC: "Unmerging" of the Penn Central

[Jerry Jordak <jer@xxxxxxxxxxxxx>]

Hey guys,

Tonight I was looking through one of the legal documents issued by the
STB on the Conrail acquisition by the PRR and NYC. (I got this through
John Krattinger's CRTS mailing list.) Anyway, about 1/3 way through
the 52 KB file, I came across the following paragraphs that I found
really interesting:

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Formation of NYC and PRR

    To effect the Division, CRC will form two wholly owned subsidiaries
(referred to collectively as the Subsidiaries): New York Central Lines
LLC (NYC) and Pennsylvania Lines LLC (PRR). CSXC will have exclusive
authority to appoint the officers and directors of NYC; NSC will
likewise have exclusive authority to appoint the officers and directors
of PRR; and CRC, as the sole member of the Subsidiaries, will (with
certain exceptions) follow CSXC's and NSC's directions with respect
to the management and operation of NYC and PRR, respectively.

Allocation of Conrail Assets and Liabilities

    On the date of the Division, CRC will assign to NYC and PRR certain
of CRC's assets. NYC will be assigned those CRC assets designated to be
operated as part of CSX's rail system (the NYC-Allocated Assets), and
PRR will be assigned those CRC assets designated to be operated as part
of NS's rail system (the PRR-Allocated Assets). These assets will
include, among other things, certain lines and facilities currently
operated by CRC, whether owned by CRC or operated by CRC under trackage
rights. Certain additional assets (referred to as the Retained Assets)
will continue to be held by CRR and CRC (or their subsidiaries other
than NYC and PRR) and will be operated by them for the benefit of CSX
and NS. 

[snip--the rest of the document describes who gets what]
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So while the public will see CSX and NS simply dividing CR, under the
legal covers, they will be using subsidiary companies named after the
PRR and NYC as legal vehicles for conveying the assets that CSX and
NS are to receive to their new owners. In essence, the Penn Central
merger is being undone. The Pennsy will live again (sort of). Now if NS
would just start painting their power Tuscan Red, we'd be all set!

ObNotes on the PC Web Site: A new section in the Maps area for
Official Track Diagrams has been created. These are actual PRR, NYC,
or PC company track diagrams. I have posted ones of North East, PA;
Girard Junction, PA; and the south end of "my" railroad, the PRR
Erie & Pittsburgh Branch. Enjoy! More updates to come (hopefully soon).

Later,
-Jer

-- 
Jerry W. Jordak               The boxcars and flatbeds, whistle blowin' steam
mailto:jer@smellycat.com      That was yesterday
http://prozac.cwru.edu/jer/   Now those big trains don't come anymore
Acts 16:31   <><                  -- Restless Heart, "Big Iron Horses"