Railroad Bankruptcies and Mergers from Chicago West: 1975-2001 - 1st Edition - ISBN: 9780762310791, 9780080944043

Railroad Bankruptcies and Mergers from Chicago West: 1975-2001, Volume 7

1st Edition

Financial Analysis and Regulatory Critique

Authors: Michael Conant
Hardcover ISBN: 9780762310791
eBook ISBN: 9780080944043
Imprint: JAI Press
Published Date: 12th February 2004
Page Count: 166

Institutional Access


Table of Contents

Introduction. Railroad regulation and misallocation of resources. Rock Island bankruptcy. Milwaukee road bankruptcy. Illinois central merger and sales of lines. Union pacific mergers: 1982 and 1988. Burlington Northern-Santa Fe merger. Union Pacific-Southern Pacific mergers. Appendix: maps. Index.

Description

Two major U.S. Midwestern railroads, the Rock Island Lines and the Milwauke Road, filed for bankruptcy after 1975 and the Court ordered them dismembered. This study explains the economic factors causing financial failure such as total rail line excess capacity in the region leading to low density of freight traffic; in addition, labor union rules required unnecessary large train crews. The regulations of the Interstate Commerce Commission aggravated the economic problems by limiting rail line abandonments and mergers designed to improve efficiency. Congress passed the Staggers Act in 1980 to correct a large part of the regulatory limitations to efficient reorganization of the U.S. rail system, but it was too late to save the Rock Island and the Milwaukee Road.

The later chapters are economic analyses of the more recent mergers of the large railroads from the Mississippi River to the Pacific Coast. A key saving resulted from the court ruling that segments of rail line could be sold to new short-line railroads without the selling carrier having to pay special compensation to rail workers who were discharged. The Illinois Central Railroad was a prime example of a carrier that sold almost all of its branch lines. Great efficiencies in operations were realized as the Union Pacific acquired the Missouri Pacific and the Southern Pacific. Comparable efficiencies were realized by the Burlington Northern acquisitions of the St. Louis-San Francisco and the Atchison, Topeka & Santa Fe.

Readership

Included in Transportation Cluster Leaflet, Mailed February 2004. Also to be included in cluster email - August/ September 2004.


Details

No. of pages:
166
Language:
English
Copyright:
© JAI Press 2004
Published:
Imprint:
JAI Press
eBook ISBN:
9780080944043
Hardcover ISBN:
9780762310791

About the Authors

Michael Conant Author

Affiliations and Expertise

University of California, Berkeley