RE: PC: It was a bad move anyway?!?

["Armstrong, John A" <ArmstronJA@xxxxxxxxxxx>]

Larry,

I have probably done more home work on this subject than most.  I am not going to give you my resume, but I have a fairly clear picture on what went on. 

The NYC and PRR were both in trouble going into this merger.  The NYC had pursued a vigorous program of reinvestment in the physical plant and freight equipment and during the last three years - locomotives.  The PRR invested in a large fleet of equipment but it also pursed the diversification program to a greater extent than the NYC.  

Both methods were ultimately unsuccessful, as neither company was healthy by the merger 1968.  A merger of two weak companies usually results in a bigger one and that is what you got in PC.  No management team could overcome the business climate that all of the CR predecessor's were working under.  It took an act of Congress and nearly 7 BILLION dollars of public money (of which the government got back about 2.5 Billion) to make railroading profitable again in the northeast.

John

> ----------
> From: 	larryzong -AT- webtv.net[SMTP:larryzong@webtv.net]
> Reply To: 	penn-central -AT- smellycat.com
> Sent: 	Friday, April 14, 2000 6:54 PM
> To: 	penn-central -AT- smellycat.com
> Subject: 	Re: PC: It was a bad move anyway?!?
> 
> since i am a former prr pc and conrail employee now of the info you are
> stating is not what really happened. i agree it was probably a bad
> marriage but from what i have been reading in this back and forth
> messages i have been reading is far from the truth. you had better talk
> to some former employees in the upper echleon and try to figure out the
> truth. one reason it was to diversified. 4 hotels in new york and an
> airline that drained the money and not enough money was being put back
> in the plant. also there were to many employees and they had to be
> severed.
> i could go on and on. the red and green didnt mix as it should have.
> conrail must have been doing a good job because the stock split about
> three times. at about 115 when it was pulled from the stock exchange.
> all you people should do a lot of homework before you know the truth.
>  the 2 computers were not interchangeable at the time and a new computer
> system had to be established.
> i could keep going on and on but do your homework and yoou will see what
> really happened.
> i remain larry e zong.
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