Re: (erielack) Beginnings of Mergers

[Fish_76_@_webtv.net (Joseph D. Fisher)]

I've often gave this concept some thought. Trust me, this is not the
first time this discussion came around.

Here are some of my choices.

DLW+NKP. We all know about the attempt of hostile take-over by the DLW
of the Nickel Plate. But, think, if it actually came to fruition, what
would've happened. Granted, the NY to Chicago route is "redundant" but
there are also gateways to Peoria, and St. Louis, which, with some
creative interchange agreements for NY to West Coast trains, that long
dreaded "extra day" of moving a train through Chicago could be
eliminated.

Going back a bit further in time, lets look at the Lehigh and Hudson
River. Gee, think that if back in the day, when the "United Companies"
who owned the Belvidere and Delaware Railway (also owned the Bordentown
RR and the Camden and Amboy RR) granted the lease of these properties to
the Lehigh and Hudson River. In order to make this one complete, LHR
would also have the obtain the lease of the Central New England Railroad
(New Havens Maybrook Line).

Talk about one hell of a freight by-pass around NYC. 

On another note, not a merger, but rather smarter management of a
railroad, I've always said that if the CNJ quit Pennsylvania operations
completely in 1966 instead of 72, and then pumped money into its
southern division, and "sell" its benefits of large land lots for
manufacturing, I think the CNJ would've not been bankrupt. 

Realize, at the time, PRR was looking for ways to close down all the
branches into Central and Southern NJ. PRR was a big company, and was
looking to rid itself of this dead weight.

CNJ, being a smalled company, could've monopolized on this opportunity,
and re-invented itself. 

This would've worked marvelously, simply cause the costs of running such
a railroad which for the most part, was a duplicate of the Lehigh
Valley, killed it. By reducing this track, and then concentrating on an
area with NO COMPETITION, the tables could've very well turned in favor
of the CNJ.

Run trains to the Reading and B+O (bound brook), and the Erie-Lackawanna
(Croxton or Kearny) and they are pretty well set. CNJ could've lived as
a "terminal railway" of sorts, reaping delivery and "point of origin"
charges, without needing to pay taxes on so many miles of its railroad
track which it could've lived without.

This would also reduce the need for so many locomotives, and instead of
having to live on hand-me-down locomotives from the B&O, they could've
cleaned house, and got leases on much more reliable equipment like
GP-38's for instance. (for all those who question, alot of CNJ's monies
were spent on keeping junker loco's running, which could've more wisely
been spent on a lease instead. Locomotive utilization was poor at best)

I think if this would've been the way of the CNJ, granted, the SD-40's
would never have needed to be leased, (the SD-35's would've worked well
for runs out to the Reading and Transfers to the EL) and the ability to
retire all those rolling hulks of junk could've brought the much needed,
lower horsepower, fuel efficient GP-38 to the roster instead.

and the final question, IF it was only the Penn Central who was busted
finacially, would it still have become Conrail? or would the government
have split her up to two or three differnet parties again? Who would've
been the buyers?


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