NationMaster - Encyclopedia: Penn Central Transportation

The Pennsylvania and New York Central Transportation Company, almost always called Penn Central, was an American railroad company that operated from 1968 until 1976. It was created by the merger on February 1, 1968 of the Pennsylvania Railroad and the New York Central Railroad. The New York, New Haven and Hartford Railroad was added to the merger at the insistence of the ICC on January 1, 1969. The headquarters of the merged railroad was in Philadelphia. Image File history File links LKwok_Penn_Central. ... Reporting marks on two CP Rail covered hoppers passing Wisconsin Dells, Wisconsin, June 20, 2004. ... Nickname: The Windy City, The Second City, Chi Town, The City of Big Shoulders The 312 Motto: Urbs In Horto (Latin: City in a Garden), I Will Location in Chicagoland and Illinois Coordinates: Country United States State Illinois County Cook Incorporated March 4, 1837 Mayor Richard M. Daley (D) Area... New York, New York redirects here. ... Alternative meanings: Boston (disambiguation) The 18th_century Old State House in Boston is surrounded by tall buildings of the 19th and 20th centuries. ... 1968 (MCMLXVIII) was a leap year starting on Monday (the link is to a full 1968 calendar). ... 1976 (MCMLXXVI) was a leap year starting on Thursday. ... Conrail 6114, a GE Dash 8-40CW, leads a train westbound out of Altoona, Pennsylvania. ... Acela Express in West Windsor, NJ Amtrak Cascades service with tilting Talgo trainsets in Seattle, Washington Amtrak train in downtown Orlando, Florida For other uses, see Amtrak (disambiguation). ... Rail gauge is the distance between two rails of a railroad. ... A foot (plural: feet) is any of several old units of distance or length, measuring around a quarter to a third of a meter. ... Mid-19th century tool for converting between different standards of the inch An inch is an Imperial and U.S. customary unit of length. ... A millimetre (American spelling: millimeter, symbol mm) is an SI unit of length that is equal to one thousandth of a metre. ... As railways developed and expanded one of the key issues to be decided was that of the rail gauge (the distance between the two rails of the track) which should be used. ... Nickname: City of Brotherly Love, Philly, the Quaker City Motto: Philadelphia maneto (Let brotherly love continue) Location in Pennsylvania Coordinates: Country United States State Pennsylvania County Philadelphia Founded October 27, 1682 Incorporated October 25, 1701 Mayor John F. Street (D) Area - City 369. ... This is the top-level page of WikiProject trains Rail tracks Rail transport refers to the land transport of passengers and goods along railways or railroads. ... 1893 map The Pennsylvania Railroad (AAR reporting mark PRR) was an American railroad that was founded in 1846 and merged in 1968 into Penn Central Transportation. ... The New York Central Railroad (AAR reporting mark NYC), known simply as the New York Central in its publicity, was a railroad operating in the North-Eastern United States. ... The New York, New Haven and Hartford Railroad (AAR reporting mark NH) was a railroad that operated in the northeast United States. ... The Interstate Commerce Commission (ICC; 1887 - 1995) was a regulatory body in the United States created by the Interstate Commerce Act of 1887, which was signed into law by President Grover Cleveland. ... Nickname: City of Brotherly Love, Philly, the City That Loves You Back, the Quaker City, The Birthplace of America Motto: Philadelphia maneto - Let brotherly love continue Location in Pennsylvania Coordinates: Country United States State Pennsylvania County Philadelphia Founded October 27, 1682 Incorporated October 25, 1701 Mayor John F. Street (D...

Background of the merger

The Penn Central was created as a response to challenges faced by all three railroads in the late 1960s. The northeastern quarter of the United States, these railroads' service area, was the most densely populated region of the U.S. While railroads elsewhere in North America drew a high percentage of their revenues from the long-distance shipment of commodities such as paper and iron ore, Northeastern railroads traditionally depended on a much more heterogeneous mix of services, including: Regional definitions vary from source to source. ... Piece of A4 paper Paper is a thin material produced by the amalgamation of plant fibres, which are subsequently held together without extra binder, largely by hydrogen bonds and to a large degree by fiber entanglement. ... This heap of iron ore pellets will be used in steel production. ...

These labor-intensive, short-haul services were all vulnerable to the four-lane highway. In 1956, the U.S. Congress had passed, and President Eisenhower had signed, the Federal-Aid Highway Act of 1956. A Connex commuter train stands by the platform in Melbourne, Australia Regional rail systems, or commuter rail systems, usually provide a rail service through a central business district area into suburbs or other locations that draw large numbers of people on a daily basis. ... Restored passenger cars on display at the Mid-Continent Railway Museum in North Freedom, WI. A passenger car is a piece of railway rolling stock that is designed to carry passengers. ... The Railway Express Agency was a rail express service, at one point the only one in the United States. ... A boxcar (the American term; the British call this kind of car a goods van) is a railroad car that is enclosed and generally used to hold freight. ... The Congress of the United States is the legislative branch of the federal government of the United States of America. ... Dwight David Ike Eisenhower (October 14, 1890–March 28, 1969), American soldier and politician, was the 34th President of the United States (1953–1961) and supreme commander of the Allied forces in Europe during World War II, with the rank of General of the Army. ... The Federal-Aid Highway Act of 1956, popularly known as the National Interstate and Defense Highways Act, was enacted on June 29, 1956, when a hospitalized Dwight D. Eisenhower signed this bill into law. ...

Another significant problem was the inability of the New York Central and Pennsylvania railroads to respond to market conditions. The railroad industry at the time was heavily regulated by the Interstate Commerce Commission and was unable to change the rates it charged shippers and passengers. Therefore, reducing costs was the only way to become more profitable. Government regulation and agreements with labor unions tightly restricted what cost-cutting could take place. Merger seemed to be a promising way out. The Interstate Commerce Commission (ICC; 1887 - 1995) was a regulatory body in the United States created by the Interstate Commerce Act of 1887, which was signed into law by President Grover Cleveland. ...

The merged railroad: red lights ahead

As it turned out, the merged Penn Central was little better off than its constituent roads were before. A merger implementation plan was drawn up, but not carried out. Attempts to integrate operations, personnel and equipment were not very successful, due to clashing corporate cultures, incompatible computer systems and union contracts. Track condition deteriorated (some of the deteriorating track conditions were inherited from the three merged railroads) and trains had to be run at reduced speeds. This meant delayed shipments and personnel working a lot of overtime. As a result operating costs spiraled. Derailments and wrecks became frequent, particularly in the midwest.

Penn Central management created a holding company, the Penn Central Company, and tried to diversify the troubled firm into real estate and other non-railroad ventures, but in a slow economy these businesses performed little better than the railroad assets. In addition, these new subsidiaries diverted management attention away from the problems in the core business. To make matters worse, management insisted on paying dividends to shareholders to create the illusion of success. The company had to borrow more and more to keep operating. The interest on the loans became an unbearable financial burden. A holding company is a company that owns enough voting stock in another firm to control management and operations by influencing or electing its board of directors. ...

The American financial system was seriously shocked when after only two years of operations, Penn Central declared bankruptcy on June 21, 1970. It was the largest corporate bankruptcy in American history up until that time. Bankruptcy in the United States is a matter placed under Federal jurisdiction by the United States Constitution (in Article 1, Section 8), which allows Congress to enact uniform laws on the subject of Bankruptcy throughout the United States. ...

During the bankruptcy: yellow lights

The Penn Central's bankruptcy was the final blow to long-haul private-sector passenger train service in the United States. The troubled line filed to abandon most of its remaining passenger rail service, causing a chain reaction among its fellow railroads. The federal government stepped in and, in 1971, created Amtrak, a virtual government agency, which began to operate a skeleton service on the tracks of Penn Central and other U.S. railroads. This article is about trains in rail transport. ... Acela Express in West Windsor, NJ Amtrak Cascades service with tilting Talgo trainsets in Seattle, Washington Amtrak train in downtown Orlando, Florida For other uses, see Amtrak (disambiguation). ...

The Penn Central continued to operate freight service under bankruptcy court protection. After private-sector reorganization efforts failed, Congress nationalized the Penn Central under the terms of the Railroad Revitalization and Regulatory Reform Act of 1976. The new law folded six northeastern railroads, the Penn Central and five smaller, failed rails, into the Consolidated Rail Corporation or Conrail. The act took effect on April 1, 1976. The United States Railroad Revitalization and Regulatory Act of 1976, funded the reorganized bankrupt Northeast and Midwest railroads that formed Conrail in 1975. ... Conrail 6114, a GE Dash 8-40CW, leads a train westbound out of Altoona, Pennsylvania. ...

Facing continued loss of market share to the trucking industry, the railroad industry and its unions were forced to ask for deregulation. The 1980 Staggers Act, which deregulated the railroad industry, proved to be a key factor in bringing Conrail and the old Penn Central back to life. Deregulation is the process by which governments remove restrictions on business in order to (in theory) encourage the efficient operation of markets. ... The Staggers Rail Act of 1980 deregulated the railroad industry to a significant extent, replacing the regulatory structure that existed since the 1887 Interstate Commerce Act. ...

Image File history File links Download high resolution version (900x598, 374 KB) Summary Penn Central 4801 & 4800 hauling freight - North Elizabeth NJ - 12-13-75. ... Image File history File links Download high resolution version (900x598, 374 KB) Summary Penn Central 4801 & 4800 hauling freight - North Elizabeth NJ - 12-13-75. ... The Pennsylvania Railroads GG1 class of electric locomotives were built between 1934 to 1943 at the PRR shops in Altoona, Pennsylvania, with a total of 139 units constructed. ... Map of Elizabeth in Union County Union County Court House Elizabeth is a City in Union County, New Jersey, in the United States. ...

After the bankruptcy: yellow, then green

The deregulated Conrail had the muscle to implement the route reorganization and productivity improvements that the Penn Central had unsuccessfully tried to implement in 1968-1970. Many miles of old Pennsylvania and New York Central track were abandoned to adjacent landowners or rail trail use. A profitable Conrail was refloated on Wall Street in 1987, and operated as an independent, private-sector railroad in 1987-1999. Rail trails are former railway lines that have been converted to paths designed for pedestrian, bicycle, skating, equestrian, and/or light motorized traffic. ... Elaborate marble facade of NYSE as seen from Broad and Wall Streets For other uses, see Wall Street (disambiguation). ...

The holding company: 1976 and beyond

Meanwhile, the Penn Central Transportation Company had been merged into Conrail; but the holding company, the Penn Central Company, continued as a separate firm. In the 1970s and 1980s, the new Penn Central was a small conglomerate that largely consisted of the diversified sub-firms acquired by the old Penn Central before the crash. Among the properties the Penn Central Holding Company owned when Conrail was created in 1976 were Madison Square Garden (which stands above Penn Station), and its prime tenants, the New York Knickerbockers basketball team and New York Rangers hockey team. A holding company is a company that owns enough voting stock in another firm to control management and operations by influencing or electing its board of directors. ... Madison Square Garden, often abbreviated as MSG, known colloquially simply as The Garden, has been the name of four arenas in New York City, United States. ... The New York Knicks, short for knickerbockers, are a professional basketball team based in New York City. ... The New York Rangers (NYR) are a professional ice hockey team based in New York City, New York, USA. They play in the National Hockey League (NHL). ...

Though the new Penn Central retained ownership of some rights of way and station properties connected with the railroads, it continued to liquidate these and eventually concentrated on one of its subsidiaries in the insurance business. The former Penn Central Corporation changed its name to American Premier Underwriters in March 1994. It is today part of the Cincinnati financial empire of Carl Lindner and his American Financial Group. Cincinnati, Ohio viewed from the SW, across the Ohio River from Kentucky. ... Carl Lindner, Jr. ... American Financial Group Incorporated is a holding company based in Cincinnati, Ohio. ...

Although its subsidiary left the railroad business many years ago, American Financial Group, as of 2006, still owns Grand Central Terminal in New York City. The New York Metropolitan Transportation Authority is the station's current lessee. The cash value of the station is limited, as the building is listed for purposes of historic preservation and cannot, under current law, be torn down for redevelopment. The main concourse Grand Central Terminal at Night Grand Central Terminal (GCT, often unofficially called Grand Central Station) is a terminal rail station at 15 Vanderbilt Avenue (42nd Street and Park Avenue) in Midtown Manhattan in New York City. ... Nickname: Big Apple; City that never Sleeps; Gotham Location in the state of New York Coordinates: Country United States State New York Boroughs The Bronx Manhattan Queens Brooklyn Staten Island Settled 1613 Mayor Michael Bloomberg (R) Area - City 1,214. ... The Metropolitan Transportation Authority (MTA) is a public benefit corporation of the State of New York chartered by the New York State Legislature in 1965. ... It has been suggested that Cultural heritage be merged into this article or section. ...

Corporate history

The Pennsylvania New York Central Transportation Company was formed February 1, 1968, as an absorption of the New York Central Railroad by the Pennsylvania Railroad. The trade name Penn Central was adopted, and on May 8 the company was officially renamed to the Penn Central Company. The Penn Central Transportation Company was incorporated April 1, 1969, and its stock was assigned to the new Penn Central Holding Company. On October 1 the PCTC merged into the Penn Central Company. The next day the Penn Central Company was renamed to the Penn Central Transportation Company, and the Penn Central Holding Company became the Penn Central Company. February 1 is the 32nd day of the year in the Gregorian Calendar. ... 1968 (MCMLXVIII) was a leap year starting on Monday (the link is to a full 1968 calendar). ... The New York Central Railroad (AAR reporting mark NYC), known simply as the New York Central in its publicity, was a railroad operating in the North-Eastern United States. ... 1893 map The Pennsylvania Railroad (AAR reporting mark PRR) was an American railroad that was founded in 1846 and merged in 1968 into Penn Central Transportation. ... A trade name, also known as a trading name or a business name, is the legal name of a business, or the name which a business trades under for commercial purposes. ... May 8 is the 128th day of the year in the Gregorian Calendar (129th in leap years). ... April 1 is the 91st day of the year (92nd in leap years) in the Gregorian calendar, with 274 days remaining. ... 1969 (MCMLXIX) was a common year starting on Wednesday (the link is to a full 1969 calendar). ... October 1 is the 274th day of the year (275th in leap years) in the Gregorian calendar. ...

The old Pennsylvania Company, a holding company chartered in 1870 and reincorporated in 1958, remained through the merger. The Pennsylvania Company was a major holding company, owning and operating much of the Lines West territory (west of Pittsburgh and Erie, Pennsylvania) of the Pennsylvania Railroad, including the Pittsburgh, Fort Wayne and Chicago Railway, the PRRs main route to Chicago, Illinois. ... A holding company is a company that owns enough voting stock in another firm to control management and operations by influencing or electing its board of directors. ... 1870 (MDCCCLXX) was a common year starting on Saturday (see link for calendar) of the Gregorian calendar or a common year starting on Monday of the 12-day-slower Julian calendar. ... 1958 (MCMLVIII) was a common year starting on Wednesday of the Gregorian calendar. ...

References

Contents

Background of the merger

The merged railroad: red lights ahead

During the bankruptcy: yellow lights

After the bankruptcy: yellow, then green

The holding company: 1976 and beyond

Corporate history

References

See also

External sources

External links

Contents

Background of the merger GA_googleFillSlot("encyclopedia_square");

The merged railroad: red lights ahead

During the bankruptcy: yellow lights

After the bankruptcy: yellow, then green

The holding company: 1976 and beyond

Corporate history

References

See also

External sources

External links

Background of the merger