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Re: PC: RE: Re: Why no money?

> In other words, the merger was conceived and executed without any clear

> idea of how it would move the corporation toward profitability or when
> would be achieved.

One of the reasons for this was that Penn Central was a last ditch
measure for survival. Every other possible merger that the PRR and NYC
tried with other roads was shot down by the ICC. PRR + NYC was all that
they left, and when you only have one chance to escape a sinking ship you
try that one chance.

Another prime example of how the ICC would kill a road just to stop a
merger that made someone else unhappy was when the UP tried to save the
Rock Island. The ICC kept dragging its heels when the Rock still had a
little value. When the ICC finally realized that the Rock was dying they
said OK. Unfortunately, the Rock was in such bad shape that the UP no
longer wanted it. The Rock Island struggled on for a decade or so, but
finally they just evaporated. At least the Penn Central was salvageable.

Bryan Turner

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