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Post by alexweihmann on Feb 28, 2007 20:37:34 GMT -5
The PC was the so called soultion to both the Pennseyvainia railroads problems and the New york central. The railroads merged on February 1, 1968 and that first day was an operating disaster. The PC was the nation's largest corporate merger in US history at that time, worth $4.5 billion. The railroads demise was a result of many problems, first the two railroads were former competeters this caused them to have the managment bot to agree. Another issue was its many legal problems, a few being its involment in Corpret aviation jet (broke monopoly laws) and its involvment in an investing group called PenPhil (I think thats what its called.) The railroad also had a large cash drain, they issued many forms of "paper money" and to make matters worse, management payed dividends to shareholders to create the illusion of success even though they were almost broke. Penn Central declared bankruptcy on June 21 1970. After bankrupty PC and other railroads joined into the goverment backed Conrail.
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rrredneck
Conductor
Proud to be a railroad redneck! YEEHAAW!!
Posts: 156
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Post by rrredneck on Mar 1, 2007 10:40:25 GMT -5
Ah, the big blue blob!
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Post by alexweihmann on Mar 1, 2007 19:30:17 GMT -5
Gotta love the big blue connies
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