Re: (erielack) EL vs. PC

[Njricky2_@_aol.com]

In a message dated 10/7/06 10:10:44 A.M. Pacific Daylight Time,  
gkazin_@_yahoo.com writes:
 
"Wreck of the Penn Central" is a very good read overall but it does go  heavy 
on the details. Sparse mentions of EL, mostly regarding possible  pre-merger 
line ups, i.e., DL&W-NKP, etc.
 
Rick

- --- 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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