(erielack) MERGER DEVELOPMENTS IN THE NORTHEAST (Jan/Feb 1963 E-L Mag)

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

Page 14 provides another blast from the past:


MERGER DEVELOPMENTS
IN THE NORTHEAST

THREE major railroad systems
are emerging in the North-
east: The Chesapeake & Ohio-
Baltimore & Ohio system, which was
approved by the I.C.C. last Decem-
ber, when it authorized the C&O
to acquire stock control of the B&O;
the Norfolk & Western-Nickel Plate-
Wabash system, on which hearings
have been concluded, but which is
still before the I.C.C. for approval;
and the Pennsylvania-New York
Central system, on which hearings
are currently being held and is like-
wise still before the Commission.

Erie-Lackawanna is supporting
the approval of the N&W-NKP-
Wabash system, because the lines
of the Nickel Plate and the Wabash
terminate at Buffalo, and that mer-
ger will increase our interchange
traffic through the Buffalo Gate-
way. In addition, Erie-Lackawanna
and the Norfolk & Western have
entered into an agreement which
provides that, promptly upon ap-
proval by the Commission of the
N&W-NKP-Wabash system, the
two companies will attempt to agree
upon a plan for some form of affili-
ation which would be mutually ad-
vantageous to both E-L and the
enlarged N&W system.

In the Pennsy-NYC case, E-L
filed a petition dated January I0,
1963, opposing that merger unless
our company is included upon equi-
table terms. We did this in the
event that E-L and the N&W are
unable to accomplish an affiliation.

Our first interest is in a prompt
approval of the N&W-NKP-Wa-
bash application so that we may be-
gin negotiations with that system.

In anticipation of that event, a
full-time committee, headed by the
N&W and consisting of representa-
tives of the N&W, NKP, E-L, and
Wabash, was formed in February
of '62.

The purpose of the committee is
to explore thoroughly the potential
savings that would accrue to the
N&W by the inclusion of Erie-
Lackawanna in that system.

The study, involving all phases of
railroad operation, is expected to be
ready for report before April 1st.


Henry

J. Henry Priebe Jr.       Blue Moon President & Network Administrator
root_@_bluemoon.net         www.bluemoon.net - Blue Moon Internet Corp
V.90, X2 & K56flex        www.railfan.net  - The Railfan Network

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