The March 2005 Issue of Trains Magazine describes the Erie Lackawanna titled "An Awful Beautiful Life".
Contents:
By the People, For the People
A White Knight
David among Goliaths
The Friendly Service Route
Older and deeper in debt
Erie Lackawanna was not so much a merger, it had to to with the Erie taking over the Lackawanna. Erie people dominated the board of directors and management and created a hostile manipulative environment for the Lackawanna folks. Rivalries everywhere from engine cabs to the executive suites diverted attention from the railroad's financial problems and shrinking traffic.
William White revived the railroad from 1963-1967, During this time is when Dereco came up and a merger with N&W was discussed.
The article explains that the railroad wanted to keep it's lines west of Marion to Chicago. Greater Savings could have come by a rehabilitation of Marion Yard, but EL never had enough cash to undertake the project nor did it's mainlines recieve the attention they needed, Fast freights, powered by heavy six-axle units wheeled around curves that were still super-elevated for long gone passenger streamliners, causing the track to deteriorate at an accelerated pace.
Hurricane Agnes is what killed the EL in the end.
Plus I understand the PC was behind on its payments and revenue splits with other railroads, I have heard that the PC being overdue on payments contributed to putting the RDG out of business, I'm sure (if true) that it wouldn't have helped the EL.
Dave H. Painted side goes up. My website : wnbranch.com
Well...
I can't imagine the EL completing a successful reorganization. The 1981 recession would have been too devastating. EL was a steel road at heart, most of their biggest customers lay between Meadville and Cleveland - one of the areas hit hardest by big steel's decline. The peak year for steel production in the US was 1973. At this point EL was planning to reorganize on its own. By early 1975 the steel industry was way off and the trustees changed their minds and joined CR. Smart move as this was just the beginning, plants started closing in Youngstown in 1977 and by 1982 the industry was just a shadow of its former self in this area. IIRC one of the trustees of the EL worked for Republic Steel, EL's biggest shipper, I think he saw what was about to happen to the traffic base. In addition to the steel, Ford Mahwah was closed in 1980. George Elwood has a list of their largest 26 customers on the lines to be sold to Chessie - of these 17 have closed, including 14 of the biggest 17 and most of the other 9 are no where what they once were. I can see a Rock Island style ending where cash ran out and the road was simply liquidated.
I've heard people say that Hurrican Agnes did a lot of damage to the EL infrastructure. Was this the biggest deciding factor in EL joining Conrail? If the Hurrican hadn't done so much damage would the EL join Conrail? How did the other railroads in the area fair with Agnes?
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