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The proposal, as modified, was to split the Rock Island between UP and SP, UP getting essentially everything north of Kansas City, and SP everything south. The ICC attached numerous trackage rights and traffic-solicitation conditions to the merger (which WAS approved) that were unacceptable to UP, and UP backed out of the merger. <br /> <br />The essential problem with the merger is that the UP connected with six Iowa roads at Council Bluffs -- Rock Island, Milwaukee, Illinois Central, Chicago Great Western, Chicago & North Western, and Burlington (plus Wabash coming up from the south). Whichever Iowa road UP merged with would of course end up starving the others, though the Burlington was sufficiently strong west of Omaha to do without UP interchange, CGW was merged out of existence, and Wabash was a non-player anyway. The ICC merger approval attempted to reconcile all this, but from UP's point of view, that would simply give them more expense without enough additional income. What would be the point of buying a line to Chicago if you had to give some of your traffic to competitors to your own line? None, really! <br /> <br />Ultimately, it was all sorted out anyway -- Burlington merged to become BN, Rock went bankrupt and the Iowa line became a regional, Milwaukee and Wabah to Omaha were abandoned, and IC to Omaha became a regional. C&NW became part of UP.
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