How NOT to merge/run a railroad! The Penn Central Railroad.

ICC just gave trucking a free run of everything while holding the railroads back. My dad worked for Pennsy back then and they knew the merger would be a mess, there was so much different, changes made after the merger talks began didn't help either, between the two companies. It was a shame things the went the way they did but a lesson there, but not neccessarily learned now.

Strike one: Inflexible ICC Strike two: Being forced to bring in the NH Railroad Strike three: Arrogant Pennsy management living in the past

It was my understanding that the reason that Robert Young killed himself was because he lost control of the NYC, NOT because the job was too big for him

I also want the story of Penn. Amtrak to be taught, not just in colleges but, in all American schools.

A great informative video. I always learn a lot from your work. Thanks for posting.

Next locomotive documentary when?

The Eastern Railroads, or any railroads really depended on freight traffic for their bottom line, much less so for passenger revenue. The Southern, N&W and C&O are examples of very profitable coal haulers. I recall riding on a single car RDC on the Reading with an engineer, 'fireman', conductor and trainman. I believe 'featherbedding' was the term. Between the overregulation by the ICC, the intransigent unions and trucking companies subsidized by highway construction, the railroads were operating from a disadvantaged position.

One other critical thing to understand is that the PRR owned substantial stock in many other railroads, some to the point that the PRR all but controlled them. A significant amount of their corporate income came from dividend payments from railroads like the Norfolk & Western, Wabash, etc. Stuart Saunders, PRR and eventually PC Chairman, was the former president of the N&W. The ICC demanded the PRR divest itself from these other corporations in order to merge with the NYC. That deprived the PRR of necessary income. The merger was hoped to save enough money through rationalization and reduction in staff and tracks to offset that loss of income.

Great book on this ill failed merger: The Wreck of the Penn Central

I enjoy all of your video's, thank you!

Jesus! Your microphone pop at only 3 seconds just about blew my subwoofer out. Dude?!

I pretend that the Penn Central days never happened. 😂

I believe what you say about Pennsy's slowness to convert to diesel power was inaccurate. They were too slow but by 1950 diesel power was a major part of the routine and I believe that a majority of freight and passenger trains were powered by diesel or electric. I don't have specific statistics at hand but I think you might re-check your sources on that. On my birthday in 1957, the Pennsy operated its last diesel powered train on regular schedule --- a commuter train from the old Exchange Place terminal in Jersey City to Point Pleasant/ Bay Head. You said they had their first diesel power in 1937 and did not really put emphasis on conversion to diesel power for 22 years. In fact they were 100% converted to diesel + electric in 20 years. I also doubt what you say about anthracite steam engines on the Pennsy. In my study of rail road history it as appeared to me that the Lackawanna (DL&W) was the only US railroad to make extensive use of anthracite power. Their anthracite burners were of an entirely different design from bituminous locos. Burning anthricite in the typical steam engines of the day was never successful.

Peen central?

as ususal a great video sir, butt like i alawys say when they became conrail it was like when the us government bailed out the car makers, a waste of taxpayer s cash.if your that big thats your problem not ours,

Good-ish but no longer a case study ... very archaic 20th C. Business is no longer conducted this way. (But living in NYC territory, I do recall the merger mess as a teen.)

Great video, almost makes me want to be a libertarian. Similar stories happened in other countries where government control by unelected officials ruined industries like rail, then blamed it on 'fat cat' rail management. It's sad to think what could have been.

All my homies HATE Penn Central

Too bad the Central didn't merge with The B&O and not go anywhere The Pensy!!

UNIONS DESTROYING AN INDUSTRY!?!? Say it ain't so!! Yes i know the ICC started the downfall and pennsys mgmnt fucking sucked- but you'd think the employees would at least try to do their part to save the company instead of just not giving a shit.... but i would've loved to see how NYC could've done if deregulation was done in 1960 instead of after Conrail showed profitability