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Clandestine control, "puppet strings" and laughing all the way to the bank.

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Clandestine control, "puppet strings" and laughing all the way to the bank.
Posted by Anonymous on Wednesday, July 20, 2005 10:07 AM
Recently I read here about how UP had control of Chicago nortwestern long before they assimilated them.

Historically, there are some interesting relationships of how PRR had control of the Wabash, NYC had the "Big Four" and the Nickle Plate,, and even the story about how the dividends paid by N&W on their stock were the only profit made by PRR some years.

Are there any other instances where one big name owned another, where It was not made common knowledge to the man in the street, for whatever reason?
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Posted by dehusman on Wednesday, July 20, 2005 10:31 AM
The B&O controlled the Reading, the Reading controlled the CNJ. The PRR controlled the LV.

At one time Gould controlled the MP, DRGW, and MKT among others.

Dave H.

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Posted by Anonymous on Wednesday, July 20, 2005 10:36 AM
QUOTE: Originally posted by dehusman

The B&O controlled the Reading, the Reading controlled the CNJ. The PRR controlled the LV.

At one time Gould controlled the MP, DRGW, and MKT among others.

Dave H.


Thanks, speaking of Gould, didn't he also own the Wabash and the Western Pacific, in his bid to build a transcon?
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Posted by tree68 on Wednesday, July 20, 2005 10:41 AM
I'd have to go to the books on this one. There were any number of railroads who were controlled, openly or less so, by other roads. In the tycoon era a number of railroads were formed simply to create competition with another RR, often for nefarious purposes.

As for specifics, how about Pere Marquette. C&O even used a PM color scheme on some of its trains...

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Posted by nanaimo73 on Wednesday, July 20, 2005 10:49 AM
I think everyone knew who owned who. The clandestine parts seemed to be making the move to buy a railroad without the others finding out. Once purchases were completed it did not seem to matter.
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Posted by spbed on Wednesday, July 20, 2005 11:04 AM
In the UPRR/CNW case if not mistaken the UPRR only owned a quite large block of stock in CNW not even a majority. Because they were a large stockholder they may have been able to sway the CNW management BUT the CNW management was totally seperate from the UPRR management team until merger took place. I was in CNW Chicago HQs enough times to be sure of that fact[:o)][:D][:p]

Originally posted by TheAntiGates
[

Living nearby to MP 186 of the UPRR  Austin TX Sub

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Posted by nanaimo73 on Wednesday, July 20, 2005 11:16 AM
The Nickel Plate (New York, Chicago and St. Louis) was under NYC control from 1883 until 1916 when the Van Sweringens got it. They also had the Erie, Chesapeake and Ohio, Hocking Valley, Pere Marquette and the Wheeling and Lake Erie. Robert R Young tried to merge them together but the NKP shareholders said no in 1945. Young then tried to merge his C&O with the New York Central and ended up with the NYC and without the C&O.
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Posted by CSSHEGEWISCH on Wednesday, July 20, 2005 12:06 PM
Less visible "control" would be among the various jointly owned terminal railroads such as BRC, TRRA, HB&T, KCT, etc. Illinois Terminal would fall in this category since it was jointly owned after 1954 for its terminal trackage in Illinois opposite St. Louis.

In the 1960's and early 1970's, N&W had indirect control of EL and D&H through its Dereco subsidiary.
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Posted by jeaton on Wednesday, July 20, 2005 12:37 PM
The Union Pacific held a large block of Illinois Central Railroad stock at least as late as the 1970's. Essentially a passive ownership, the UP didn't excercise any direct managerial control and also didn't favor the IC in any special way for Chicago-Omaha traffic.

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Posted by Anonymous on Tuesday, July 26, 2005 6:54 AM
Allegheny Corp. and First American Securities Corp. tend to be the largest registered stockholders in both BNSF, CSX, and CN.
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Posted by Anonymous on Tuesday, July 26, 2005 10:58 AM
And I guess they are mutual fund type outfits?
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Posted by Anonymous on Tuesday, July 26, 2005 11:32 AM
What we are seeing today with just two owners of east of Chicago railroads is what happened when the Van Swergins of Cleveland consolated most of the railroads in there region
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Posted by CSSHEGEWISCH on Tuesday, July 26, 2005 12:17 PM
The Van Sweringen brothers amassed their empire on a shoestring with lots of borrowed money and the whole thing came unravelled in the 1930's. The only merger that came out of that was C&O-Pere Marquette after World War 2. Today's consolidations are on a more solid fincncial base and cover more area than the Van Sweringens ever did.
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Posted by nanaimo73 on Tuesday, July 26, 2005 12:44 PM
TheAntiGates,
Heres some reading for you, if you have the time
www.ripon.edu/faculty/bowenj/antitrust/NORTHSEC.htm
You could also look up Pennroad to see how the Pennsylvania owned roads that they were not allowed to.
Dale
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Posted by Anonymous on Tuesday, July 26, 2005 3:49 PM
nanaimo73-

I've gotta say a sincere thanks for those suggestions, MIGHTY interesting reading.

The fine toothed examination of the empires built by the old robber barons and greed barons of yesteryear has always been one of my favorite aspects of railroading[:)]
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Posted by alstom on Wednesday, July 27, 2005 1:59 PM
Canadian National controlled the Grand Trunk Western
N&W controlled the Akron Canton & Youngstown
C&NW controlled the Chicago Great Western
CP controlled the Soo Line
and thats about all the others.
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Posted by Anonymous on Wednesday, July 27, 2005 2:24 PM
How did UP come across control of the Los Angeles & Salt Lake? Wasn't there some sort of flim-flammery involved there?
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Posted by nanaimo73 on Wednesday, July 27, 2005 2:44 PM
"He who sells what isn't his'n,
Must buy it back or go to prison."
-Quote from Daniel Drew, who along with Jim Fisk and Gould, got into all kinds of nonsense, mostly on the Erie Railroad.
www.u-s-history.com/pages/h874.html

Union Pacific
www.pbs.org/wgbh/amex/tcrr/sfeature/sf_scandals.html
Dale
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Posted by Junctionfan on Thursday, July 28, 2005 6:05 AM
Did the NYC buy the Michigan Central and when?
Andrew
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Posted by nanaimo73 on Thursday, July 28, 2005 7:24 AM
Vanderbilt started buying Michigan Central stock in 1869. NYC leased the MC in 1930..
TheAntiGates,
In the 1980s the railways lost a billion dollar antitrust suit from the coal slurry pipeline guys . I could not find it on a google.
Dale
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Posted by CSSHEGEWISCH on Thursday, July 28, 2005 9:11 AM
While Chicago & North Western absorbed the Chicago Great Western in 1968, it never had actual control. William Deramus was president of CGW prior to his turns on MKT and KCS. Note that all three had primarily red paint on their power while Deramus was president.

New York Central went with a lease of Michigan Central and the Big Four after an especially expensive buyout of Lake Shore & Michigan Southern in the 1870's or 1880's.
N&W absorbed Wabash and Pittsburgh & West Virginia in 1964 by way of a lease.

NS's Cincinnati-Chattanooga main (including the Rat Hole) is owned by the Cincinnati Southern Railroad, which is 100% owned by the City of Cincinnati. It is leased to the Cincinnati, New Orleans & Texas Pacific RR, a 100% owned subsidiary of NS.
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Posted by jimrice4449 on Friday, July 29, 2005 9:27 PM
The Wabash ownership of the Ann Arbor was no secret, the only difference in Wab and AA paint schemes was the name. Ann Arbor even had a flag logo w/ Ann Arbor instead of Wabash. What's not so widely known is the PRR had a considerable interest ( I don't recall the percentage) in Wabash.
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Posted by Anonymous on Friday, July 29, 2005 10:03 PM
QUOTE: Originally posted by jimrice4449

What's not so widely known is the PRR had a considerable interest ( I don't recall the percentage) in Wabash.


well, I sure didn't know it until just a year ago or so... And I grew up in a town where both served, and I always thought they 'competed'...but then I was just a kid.

I guess that if you were an adult transportation agent for a company that shipped by rail a lot, the common ownership would be the kind of thing it was your job to know.

But, for just the average dumb cluck in the street, maybe not?

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