I have a question. What was the real reason for the break up of Conrail? Was it pressure from CSX or NS. Is there any operating Conrail divisions left? Matt
I think you are correct. I have a feeling Conrail was making a profit and NS, CSX complained about this to the government? When those two rail companies put pressure on Conrail, the government looked the other way.
I think the whole idea was that government didn't plan to keep Conrail forever. Once it stood solidly on it's own feet, it was to go back into private sector. Boxcab E50
That sounds like a pretty rude way a government can work. If one of the major carriers started to fail, would the government do the same for them like Conrail? Matt
Matt- That's what they did, in creating Conrail. A major carrier was failing badly. That's what our government did, in propping up a major automotive firm, Chrysler. In both of these instances, things worked out well. The other current rail carriers could indeed have sour times. Behind the public facade, things may not be so rosy as the picture their PR pros, (propagandists), paint. Hope we don't see that day, as there'd be major turmoil. Boxcab E50
We will see that day, when I do not know. However, if one major carrier fails, say in the northeast. What a vacum that will create. The government should not step in if something like this hapens. Let the rail carriers sort the mess out. They are the people who know the industry well enough. Matt
Matt, Letting the RR people work things out sounds like good advice. But thats what happened in the early 70`s and it led to the collapse of the Penn Central, and the Feds stepping in to form Conrail from the ashes. The RR execs didnt take care of the problem. Along with that and things like the decline of industry in the northeast, and Hurricane Agnes among other issues was the death blow for the northeast RR`s. Conrail was a private, profitable company since the mid 80`s. It had great routes for intermodal traffic which we all know is the future. And all but controlled the NYC area. Thats a few reasons why NS and CSX wanted to part it out. Just good business sense led to the end of Big Blue.
