Re: (erielack) EL vs. PC

["Gary R. Kazin" <gkazin_@_yahoo.com>]

- --- Fred Stratton <erief7_@_msn.com> wrote:
> Keep in mind when talking about the EL and PC, it took the EL 16
> years to fall while it took the PC only 872 days. Much of the EL's
> financial woes were not the mismanagement of money, although at
> times some practices were questionable. However the fall of the PC
> in part involved not puting finances back into the physical plant.
> This is verified in the book " wreck of the Penn Central." They
> were more interested in other ventures and let the RR go to H _ _ _
> in a handbasket.

Once PC declared bankruptcy, they were 'protected'.  They didn't have
to pay their past bills from other railroads until the courts sorted
things out.  Going forward, they could delay paying demurrage, etc,
yet demand the other lines pay them on time.  This sucked most of the
cash out of the other lines in the northeast, one of the major
reasons for the EL, Reading, CNJ, LV, and L&H all going under.

Gary R. Kazin
DL&W Milepost R35.7
Rockaway, New Jersey

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