(erielack) E-L and N&W Merger

[Blue Moon Network Administrator <root_@_net.bluemoon.net>]

Nov/Dec 1961 E-L Magazine, p. 16:

     Merger
Possibilities with
  Enlarged N&W
    System

On October 30, when the I.C.C.
hearing on the Norfolk & Western-
Nickel Plate-Wabash merger-lease
application was reconvened, M. C.
Smith, Jr., Vice President and Gen-
eral Counsel, notified the Commis-
sion that the Erie-Lackawanna
Railroad was withdrawing its op-
position and would support the
proposed merger.

This action resulted from an
agreement reached with the Nor-
folk & Western and the Nickel
Plate which specifies that imme-
diately upon approval by the I.C.C.
of the present application, negotia-
tions would be entered into in an
attempt to work out a plan for
some form of affiliation whereby
the Erie-Lackawanna could become
a part of the enlarged Norfolk &
Western System.

In a statement read into the rec-
ord, Stuart T. Saunders, President
of the N&W said, "Since the pro-
posed N&W-Nickel Plate-Wabash
system and the Erie-Lackawanna,
to an appreciable extent, serve the
same territory, have a substantial
amount of duplicating or parallel-
ing lines, and connect a number of
common points, it would appear
that the Erie-Lackawanna would
be a logical component of the
N&W-Nickel Plate-Wabash sys-
tem."

As an" indication of "earnest-
ness" in carrying out such an
agreement, the N&W agreed to in-
vest not less than $1 million and
the Nickel Plate not less than
$500,000 in Erie-Lackawanna se-
curities before December 31, 1962.

Further hearings on the N&W-
Nickel Plate-Wabash application
are to be resumed in Washington
on December 11 before I.C.C. ex-
aminer Lester R. Conley.


Did the N&W and NKP ever make that investment?

Henry

J. Henry Priebe Jr.       Blue Moon President & Network Administrator
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