In a message dated 12/11/2006 1:59:48 P.M. Eastern Standard Time,
[EMAIL PROTECTED] writes:
Penn Central in 1968 (I think).
The LARGEST bankruptcy in the world (til that time) that became PennCentral
actually started in the mid-fifties. NYC President Pearlman wanted the
property the two railroads owned, really had NO interest in running trains.
Factor in Federal gov't disallowance of closing of marginal and outright
losing
lines, sidings and services and the recipe for disaster was written. The
1948
PENNSYLVANIA RAILROAD annual report to the shareholders stated the RR paid
MORE in property taxes in New Jersey alone than they took in in GROSS revenue
in the State of New Jersey. Scary, huh??? Also the PENNSY and all other
RR's were a shambles by 1948 because of the unrepaired wear and damage of WWII
traffic. The FEDS taxed every dollar the Railroads made during the war,
didn't allow them to spend ANY money on maintainance during the entire war,
any
products that could have been used went to the war effort. Problems didn't
crop up overnight, they built up over a number of years. Factor in the
powerful
Highway Lobby and the Air Lobby, and you've got it. Railroad passengers
don't send money to Congressmen as a rule, Lobbyists do.
Jim "livin' on the rebuilt (tax money) Keystone Main" Lyle
[Non-text portions of this message have been removed]
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