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[quote]QUOTE: Originally posted by Bob-Fryml In 1972 the C.& N.W. went "Employee Owned." Financially, during the four or five years of employee ownership, the railroad lived pretty much a hand-to-mouth existence and worked extremely hard to bring whatever pennies it could to the bottom line. When the railroad went into the power market it largely purchased second hand units. Rail and crosstie replacements were abysmally low. But here's the amazing part: a $10,000 investment on the day the company went "Employee Owned" was worth a cool million the day the company went public again. Given the generally mediocre condition of the property and all of the moribund branchlines the company was saddled with, to my way of thinking there is no way on God's green earth that any rational person could accept that the value of C.& N.W. stock could increase a hundred fold in such a short period of time. If there was ever an example of irrational exuberance, this was it! [/quote] The stock in the original "employee ownerership" was split the first time as a 60-to-1 deal, meaning that everyone that invested in the first offering made $60 for every $1 invested. Many officials (and a few in operating) invested very heavily at the beginning; there were many rumors that certain "elite" officials and their freinds were privy to insider information, and knew the split would likely happen. Many became millionares overnight. The second split was, if memory serves, a 4-to-1 split; I believe there was another split, but I am not sure. When word got out about the $$$ made by the officials (while the operating and other departments were working with bubblegum and string trying to hold the place together), employee morale went so low as to actually go into negative numbers. BTW-I'm kidding about the negative numbers, but not about the rest.
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