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(erielack) EL vs. PC
It's been a long time since I read "The Wreck of the PC", but I seem to recall a claim that PC chairman Stu Saunders (ex-PRR, of course) believed that jumbo jets would eventually take all the RR's long distance traffic, including coal ! I don't know whether or not this was true, but high-level management brilliance and commitment was in short supply at that outfit. Those interested in the PC fall will want to look at "Penn Central RR" by Peter Lynch. This book is much more focused on the operational side and I recommend it.
Gary is correct, PC's collapse weakened the entire industry, including RR's like EL that were primarily competitors, since so much traffic was interline. The revenue shortfalls tended to outweigh the benefits of traffic diversion.
Paul B
"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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