Re: PC: What If -Reply

["Bill K" <pontiac@xxxxxxxxxxxxxx>]

Two notes:

Hurricane Agnes is what killed the EL - before that they were planning on
upgrading a yard and had the cash to do it, but when the hurricane hit they
had to spend to fix the mainline instead - 

The LV actually made money by their bookkeeping standards in 1975 - the
biggest reason this road went bankrupt is because it was 97% owned by the
bankrupt PC.

Was the RDG bankrupt?  they bought new engines on their own as late as '74
(where the LV got engines with USRA financing).  I know C&O took a beating
dumping their shares of RDG stock.

What it comes down to is the PC collapse killed most of the other roads,
with owning some or sharing assets with them, and because the PC merger
took away a lot of traffic from all of them (Maybrook traffic, Williamsport
RDG traffic to the NYC, etc.).  That's my opinion anyhow based on the facts
as I understand them - 

Bill's Syracuse rail page 
 
http://www.dreamscape.com/pontiac/rail.html

----------
: From: Jim Homoki <JHOMOKI -AT- mbakercorp.com>
: To: penn-central -AT- smellycat.com
: Subject: Re: PC: What If -Reply
: Date: Monday, July 27, 1998 8:16 AM
: 
: OK, I can't resist adding my thoughts to this topic, and taking
: some exceptions to what is being said:
: 
: The New Haven was a wreck long before PC took over.
: Why else would the Feds insist on a merger?
: 
: The PRR was able to unload the LIRR on New York.  The NH
: main line was in three states, but if the PC didn't absorb them, then
: an agency would have had to be created to keep the commuter
: trains running.  At the very least operations would have to be
: subsidised the way NJDOT helped out CNJ and EL.
: 
: Passenger service was a massive drain, even if the books
: weren't slanted to show losses greater than they were.
: 
: Despite inept merger strategies, the PC would have gone under
: in FOUR or FIVE years instead of two, no matter who ran it.  To
: support this look at what happened to the other Northeastern
: roads, EL, LV, RDG, B&M, the perpetually bankrupt CNJ, and even
: the midwestern Milwaukee Road.
: 
: Diversification was not a bad idea.  Look at the great Real Estate
: the NYC had in Manhattan.  Too much was made of PRR and PC
: investments that did not work out.  Just look at Penn Central today,
: now known as American Premier Underwriters.  This company
: survived on non-railroad businesses.
: 
: The above are opinions, but based on fact, trying not to favor
: one RR over another.
: 
: Jim
: