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RE: PC: It was a bad move anyway?!?
- Subject: RE: PC: It was a bad move anyway?!?
- From: "Armstrong, John A" <ArmstronJA@xxxxxxxxxxx>
- Date: Mon, 17 Apr 2000 10:12:03 -0400
- Content-return: allowed
The government received all of their investment when they sold the stock? Hardly!!!! The government invested nearly 7 Billion dollars in Conrail itself. That includes what it cost to purchase the property from the companies themselves and the amount CR invested in improvements. It does not include the amount of the "loans" given to the bankrupts to continue operations prior to the merger. In the end, Uncle Sam received about 2.5 billion from the IPO. Anyway you slice it, WE lost over 4 BILLION on our Conrail investment.
> conrail may have gotten federal funds but it all returned when the stock
> was sold the govt didnt lose any money. i also read the wreck of the pc.
> when cr was formed the money was all returned. then cr made some inroads
> by getting rid of some rail lines that were non profitable. then the
> states took over these non profitable lines and that is when these short
> line carriers took over. and each year the states dropped the percentage
> and the shortlines had to take on more responsibility. that went on for
> 5 years. now they must go it alone. if the line didnt have a 100 cars
> per mile then cr got rid of them, no profit.
> want me to keep going on?
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