QUOTE: Originally posted by arbfbe I can give three examples of railroads who managed their companies with the goal of a white kniight in a merger clothing coming along to save the day. Once the decision was made to merge that became the goal. All other management plans to build the business, improve the infrastructure and serve the customers went by the wayside. Moneys which should have gone towards maintenance instead went to dividends or building a small cash holding so as to look more appealing to any suitors. Developing a Plan B in case the merger Plan A failed to actualize would be prima facia evidence the managers had doubts. Now when have you ever heard top managers admit they were hedging their bets account there were cloudy areas they could not see into. That just does not happen. Successful managers are bold and sure and steady to implement "the plan". Allowing for something to fail would encourage underlings to seek their own alternative plans or even take over the top job with a plan to insure success of Plan A. The C&NW was treading water waiting for first the MILW and later the UP to take the load off management. Given the UPs need for a connection to Chicago and later the C&NWs access to the PRB they finally pulled it off and the UP took them over. That was after the cash flows from the PRB were coming in. Next look at the Rock Island. They even had the UP carrying the paper on thier new locomotives. Unfortunately the merger took so long account all the other carriers that wanted protection the RI managements deferred maintenance caught up with them and they lost it all. Finally, the MILW. Merger with the C&NW to eliminate competition in both railroads core business areas. Those railroads could not come to terms, one side or the other had to feel they were coming out on top. So next the MILW cast it's lot with the BN. After all, the original BN merger mandated the BN had to consider inclusion on the MILW after a specified time. But the BN did not want yet a third line to Seattle and account the huge capital expenses of the PRB could not afford to take on the MILW in its ragged state. Again management rode the merger unicorn into the dirt and lost it all. Ouch, indeed.
Thanks to Chris / CopCarSS for my avatar.
QUOTE: Originally posted by futuremodal QUOTE: Originally posted by cornmaze Bert, Just walk away from this thread and find something more useful to do with your time. Like perhaps go back and get your GED!
QUOTE: Originally posted by cornmaze Bert, Just walk away from this thread and find something more useful to do with your time.
An "expensive model collector"
QUOTE: Originally posted by MichaelSol QUOTE: Originally posted by n012944 I think the most telling financial analysis was that it was ABANDONED. Don't need a law degree to figure that one out. Bert Bert A nice neat little world of a priori reasoning, there. Airtight, apparently. "Lincoln is dead. Therefore Lincoln deserved to die." Don't need any degree to see instantly the logical fallacy of your proposition and the inability to support empty conclusions by any reference to experience or a factual record. [
QUOTE: Originally posted by n012944 I think the most telling financial analysis was that it was ABANDONED. Don't need a law degree to figure that one out. Bert Bert
QUOTE: Originally posted by n012944 If the PCE was indeed a moneymaker as you and the other Kool-Aid drinkers say, someone would have bought it from the MILW and kept it in service. There were no serious takers however.
QUOTE: Originally posted by MichaelSol QUOTE: Originally posted by n012944 If the PCE was indeed a moneymaker as you and the other Kool-Aid drinkers say, someone would have bought it from the MILW and kept it in service. There were no serious takers however. I would make just a wild guess that you weren't there and don't really know. Just a wild guess. Milwaukee Road's own ICC Application to Abandon showed that the line was profitable; not just maybe, that it was consistently profitable through the most recent operating year, 1978. Not many US railroads were able to say that consistently during that time period, 1975-1978. Milwaukee Road's own consultants, Booz Allen Hamilton, could not offer a configuration that would be profitable without including the line. With the line, they projected profitability. The most profitable configuration they projected was only the transcon -- dump the rest. There were three serious efforts to buy the line, one included shipper/ESOP financing, one included shipper/investment bank/ESOP financing, and one involved state and federal financing. They were S.O.R.E., NewMil Corp., and Montana Rail Corporation. In addition, Southern Pacific Railway considered purchasing the transcontinental line, but feared it would get stuck with the Midwestern core as well. Milwaukee Road's own bankers, Continental Illinois Bank and Harris Bank testified that in their view, Milwaukee Road could not be reorganized successfully without the transcontinental line. Now, what is the specific basis for your statement?
QUOTE: Originally posted by n012944 Like I said, no serious takers, anytime there is an abandonment, plant closure or the like the employees seem to ban together and say "if we ran it, we would make it work." Very rarley does it work however. I know, I had the experiance of being management at a bankrupt company, always the know it all "experts" much like on this board, who think that management is out to get them and stupid. However they rarley have the big picture. I'm sure the three examples you used were underfunded and did not want to pay the scrap value of the line. As for the SP and its fears, funny how the CP is making the midwest core work just fine. As for the line "showing" the it was profitable, ask anyone at Enron how easy it is to make things look good on the books. Bert
QUOTE: Originally posted by n012944 [ I know, I had the experiance of being management at a bankrupt company, always the know it all "experts" much like on this board, who think that management is out to get them and stupid. However they rarley have the big picture. I'm sure the three examples you used were underfunded and did not want to pay the scrap value of the line.
QUOTE: Originally posted by n012944 As for the line "showing" the it was profitable, ask anyone at Enron how easy it is to make things look good on the books. Bert
QUOTE: Originally posted by Murphy Siding QUOTE: Originally posted by n012944 Like I said, no serious takers, anytime there is an abandonment, plant closure or the like the employees seem to ban together and say "if we ran it, we would make it work." Very rarley does it work however. I know, I had the experiance of being management at a bankrupt company, always the know it all "experts" much like on this board, who think that management is out to get them and stupid. However they rarley have the big picture. I'm sure the three examples you used were underfunded and did not want to pay the scrap value of the line. As for the SP and its fears, funny how the CP is making the midwest core work just fine. As for the line "showing" the it was profitable, ask anyone at Enron how easy it is to make things look good on the books. Bert You lost me with the reference to SP and CP. Can you elaborate?
QUOTE: Originally posted by n012944 Like I said, no serious takers, anytime there is an abandonment, plant closure or the like the employees seem to ban together and say "if we ran it, we would make it work." Very rarley does it work however.
QUOTE: Originally posted by nanaimo73 QUOTE: Originally posted by Murphy Siding QUOTE: Originally posted by n012944 As for the SP and its fears, funny how the CP is making the midwest core work just fine. Bert You lost me with the reference to SP and CP. Can you elaborate? Bert was thinking CP has the Midwest core of the Milwaukee Road. All they have is the Twin Cities-Chicago mainline. CP's 400 miles is not the midwest core, that would be more like 4000 miles.
QUOTE: Originally posted by Murphy Siding QUOTE: Originally posted by n012944 As for the SP and its fears, funny how the CP is making the midwest core work just fine. Bert You lost me with the reference to SP and CP. Can you elaborate?
QUOTE: Originally posted by n012944 As for the SP and its fears, funny how the CP is making the midwest core work just fine. Bert
QUOTE: Originally posted by cornmaze QUOTE: Originally posted by MichaelSol You seem to be the one who "knows it all" here, without seeming to actually know anthing about it. ... I keep asking these specific questions, since only if you had answers would you be able to make the statement, but you never seem to have any facts or answers, just broad conclusions. .... You still know it all. Got it all figured it. And if the facts are contrary -- then reality is wrong, you just simply know all about it. "a priori" Another posting from Captain Irony. The irony, of course, is he is pointing out things in his oppent's reasoning that he himself is guilty of . I think it's the politician's tactic of accusing your opponent of the same weaknesses you have as a way of deflecting attention off of you and onto him. The above poster again says, "a priori." Well the irony of course is that he himself is guilty of making fallacious arguments, and more guilty than his opponent, indeed, because he does it knowingly. Examples: The poster stated on another thread that because all other railroads of the world use DC electric power, that therefore DC power is the way to go. Sorry, that's the old fallacy of numbers. Does not mean or prove anything. Ten-thousand Elvis fans can be wrong. Then there's the poster's comment that the trustee discovered his error, and then resigned, leading us to believe that the discovery of the error caused his resignation. Sorry, that's the old fallacy that because things happen in a sequence one therefore caused the other. Elvis died in 1979; the Milwaukee Road abandoned the lines west less than a year after. Therefore the death of Elvis caused the Milwaukee Road to abandon the PCE. Rubbish. Then there's the poster's comment on another thread that because something he published in CTC Board Magazine went unchallenged by anyone, that it should therefore be taken as true. (The factoid in question was that "76% of Seattle Port traffic belonged to the Milwaukee Road.") Sorry, that's another fallacy. Just because someone can't disprove something you say, does not make it true. Futuremodal is Elvis. I can't disprove it... it must be true!
QUOTE: Originally posted by MichaelSol You seem to be the one who "knows it all" here, without seeming to actually know anthing about it. ... I keep asking these specific questions, since only if you had answers would you be able to make the statement, but you never seem to have any facts or answers, just broad conclusions. .... You still know it all. Got it all figured it. And if the facts are contrary -- then reality is wrong, you just simply know all about it. "a priori"
QUOTE: Originally posted by MichaelSol QUOTE: Originally posted by n012944 As for the line "showing" the it was profitable, ask anyone at Enron how easy it is to make things look good on the books. Bert Do you think about what you write? The Trustee, in filing an Abandonment Petition, wanted to make it look profitable? Don't you think it was more plausible that he did everything he could to make it show a loss? He was trying to abandon it, after all. Unbelievable.
QUOTE: Originally posted by MichaelSol QUOTE: Originally posted by n012944 Like I said, no serious takers, anytime there is an abandonment, plant closure or the like the employees seem to ban together and say "if we ran it, we would make it work." Very rarley does it work however. North Western seemed to have made it work.
QUOTE: Originally posted by Randy Stahl What pisses me off are the large assortment of people who never set foot on the MILW property forming opinions from WHAT ???? All of us on the Milw knew exacly what was going on , the trains for the coast were moving in endless fashion . If you weren't there.... SHUT YOUR HOLE !!!
QUOTE: Originally posted by kenneo What??? No recent controversies? A part of the MILW that has not been talked about much (or at all?) is the Montana Northern (or was it Northern Montana) Branch from Harlowton to Great Falls. Right out in the middle of the "flatlands" up towards Great Falls there is or was a series of tunnels. Story I have heard is that part of the line was built over Bentonite and every time is got wet, the line moved, and then every time it got dry, the line moved again. I also heard that one of the tunnels litterly blew away leaving a daylighted tunnel. Is all of this true??
QUOTE: Originally posted by n012944 QUOTE: Originally posted by Randy Stahl What pisses me off are the large assortment of people who never set foot on the MILW property forming opinions from WHAT ???? All of us on the Milw knew exacly what was going on , the trains for the coast were moving in endless fashion . If you weren't there.... SHUT YOUR HOLE !!! Maybe it was they were moving so slow from all the slow orders they just never seemed to end[:D] But anyways, I am sure that the PCE was doing so good that the trustee, the ICC and the bankruptcy court were just plain blind as to what was going on out there. Sure, right.[X-)] Bert
QUOTE: Originally posted by arbfbe While there are a couple sections of line with problems account blue shale the scenario you have presented concerning the Northern Montana line is quite an exageration. One tunnel was daylighted by the railroad after shifting soils moved the concrete lining to a tilted state. Who could build a tunnel through soils so soft the wind could blow it away? There are still segments the Central Montana Railroad and Montana DOT's highway section deal with near the town of Square Butte that seem to be in a constant state of movement. One of the large trestles on the line needed stabilization on some of the piers to keep it from sinking into the ground.
QUOTE: Originally posted by arbfbe For a similar debacle check out the Montana Power bankruptcy. Just the quick highlights. Take a blue chip electrical and gas utility that has paid dividends for nearly 100 years. Move in a new manager who decides the company should be in the fiber optics business instead of regulated power. Never mind deregulation is immenent and there is surplus fiber optic in the ground at the time. So Montana Power investors lose it all. Hundreds of millions of dollars gone in a relatively short time. Bob Gannon has yet to apologize to all those people who got screwed.
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