I don't know why in 60s the PRR and New York Central merged into Penn Central, Who initiate the merger project? and what makes it fails?
http://www.youtube.com/watch?v=GHmyYqfNYnc
The video clearly said that the merged corporate fails, the video is intended to ask Federal Government to intervene, and it does! the Penn Central later became Conrail, Government-owned RR (like AMTRAK but dedicated to freight jobs) and later after Conrail became profitable enough, it was bought by the two survivors, Chessie (merged B&O and Seaboard and becomes CSX, later added half portions of Conrail), and Norfolk Southern (Also formed by the mergers of N&W and Southern Railway. the two very different railroads ran very different ways, Norfolk and Western is dilligent railroad, perfected everything in both era, Southern Railway is considerably lazy, Dieselize so early to avoid maintenance and reinvestment costs which it proved to be inevitible) got another portions not acquired by CSX
At the railroad golden age, Pennsylvania Railroad and New York Central are bitter rivals, merging one lesser railroads to gain momentum over another, but avoiding mergers with each other! (and even avoid merging with B&O) for some good reasons
1. Both railrad serves same major cities, and thus having parrallel routes in NEC, Chicago, and St. Louis. the differences are westbound routes. PRR goes all the way west from Philadelphia to Altoona (where major shop is, new engines (including GG1) and rollin' stocks were once churned out of there) to Pittsburgh, NYC parrallels (and replaces) Erie canal all the way west. too much fiddlings between New York to D.C. and the use of 4 to 6 tracks in the main lines where in its heyday these were needful, merger adds excessive rail assets that is more hinderance than help.
2. Prestige.
the reasons of merger might be due to the management problems of both. by 60s every class 1 railroads finished dieselizations. thus everyone in the industry feels the same sting inflicted by the diesel life cycle trap. (Sherrick already said it all). Interesting fact is that PRR dieselize very late (just few years before N&W was forced to buy new diesels), PRR focuses on both steam and electrics, yet it failed to electrify the entire mainlines where it could payoffs. I see nothing wrong with late dieselizations because both N&W and PRR runs the coal-rich region, the benefits of easy access to coal fuel source is obivious so maxing out steams whenever possible prevents switching costs due to diesel infrastructure investments. for PRR (where they were prosperious in 50s). they should electrify the whole system instead. (and so should NYC) but in 50s. oil might be cheaper and no one thinks it will become much more expensive in the next 20 years! and thus diesels were chosen because it was attractive by then. IF i were PRR CEO and must toss steam, i choose electrification with all wealths available by then.
so back to another questions when Penn Central became Conrail and divided again by NS and CSX.
1. What happens to four-tracks? did it stays four or dismantled?
2. Who got electrified sections? do the new railroads run electric engines too? Neither N&W, Southern Railway, nor Chessie has any experiences running electric motive power.
3. Amongs the two new Class 1 railroad, who got PRR tracks, and who got NYC assets?