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How'd you like 20,000 bosses?

I like it great... especially

with them giving me so much reason to "blow my horns" about how our railway is moving ahead!

This is Rocky speaking. I work for all the people at Great Northern Railway. (You'll still see a lot of me in Glacier National Park, my original home. But my greatest claim to fame is being part of GN's trademark.)

Anyway, the view from my mountain top gets better all the timebecause this railway is way ahead of the game, right up and down its 8,280 mile line in ten states and two Canadian provinces. And I know. I ride on GN locomotives, freight cars and trucks. I'm on train schedules and travel folders-maps, calendars and letterheads. And I even have speaking parts in advertisements like this.

So let me tell you about what's making Great Northern so great these days. (And I notice we're at the first picture already!)

You know what this is— a shipment of new automobiles. For many years Great Northernand lots of other railways-hauled fewer and fewer automobiles. But there's been a change. You should see us now. We load up to 15 autos on tri-level carriers-sort of piggyback-and away we roll!

And GN's schedules get those new cars to their destinations in a hurry. Which gets me into a favorite subject: Great Northern's Coordinated Shipping Services. That's "train talk" for the way we team up freight car, truck and piggyback.

For example: ship some goods into Minnesota or Montana by freight car. Then Great Northern trucks will take over for delivery to outlying points. Or use a combination of piggyback and truck.

Coordinated Shipping Services put you on the right track. And-at mighty advantageous rates! Check with your local GN freight representative.

Whatever you ship (from perishables to pig iron) . . . wherever you ship (from the Great Lakes to the great Pacific Northwest) . . . however you ship (LCL, carload or trailerload) ... Great Northern's

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NEXT MONTH WE HAVE THE HONOR OF PUBLISHING
ARTHUR D. DUBIN'S PHOTO-SPECTACULAR OF THE

BROADWAY LIMITED . . . IN FEBRUARY TRAINS

..

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$6.00

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76 pgs..
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76 pgs.,
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$4.50
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NEWS & EDITORIAL COMMENT

edited/DAVID P. MORGAN

NYC+PRR AND THE I.C.C.

1 THOSE who thought it was im

possible to further complicate the Eastern railroad merger picture received a surprise November 8, 1961, when New York Central and Pennsylvania jointly declared their intention to marry-just four years and seven days after their first courtship began back in 1957. No one disputed then (or will now) estimated savings of 100 million dollars a year from consolidation of the nation's two largest railroads, nor has anyone contested the acute need for such savings (both roads expect to wind up 1961 in the red). What concerned many was the fact that so huge a proposition as NYC + PRR automatically ruled out any possibility of two or more competitively balanced railroad systems in the East. By all indices of size but route-mileage and profits, NYC+PRR overshadows any other railroad, proposed or in being, in the U.S., to say nothing of the East. Indeed, size was a publicly acknowledged reason why Central quit dating Pennsy in January 1959 and its President A. E. Perlman suggested that the Eastern Railroad Presidents Conference explore the possibilities of voluntarily creating three or four balanced systems from among its ranks. The ERPC ignored that proposal, Central couldn't find another partner, and finally the nation's No. 2 railroad found itself unable to crash the party of C&O-B&O and panicked by the "gargantuan empire" it felt Pennsy was constructing through the agency of Norfolk & Western (in which PRR has a third ownership interest).

Renewal of NYC+PRR merger proceedings resolves some present problems in the East, namely Central's stern and weighty objections to C&O control of B&O as well as N&W's bid for NKP and Wabash. But Chesapeake & Ohio's joy would surely be of brief duration. Suppose Chessie acquires control of B&O and subsequently absorbs it — what next? Every other road of consequence in the East has now been spoken for. And despite protestations of independence from both parties, Pennsy and N&W must be considered blood relatives so long as the former owns a third of the latter. Chessie, then, is not confronted with simply NYC +PRR but rather NYC + PRR+N&W + NKP + Wabash. Plus Erie-Lackawanna as well as little Pittsburgh & West Virginia, which have dropped their objections to N&W's empire building in exchange for a promise to be included in the ceremony. The only palatable alternative, it would appear, would be to merge all Eastern railroads, which is at this date unthinkable. Either that, or have Pennsy dispose of its stock interests in both N&W and Wabash, which is also unthinkable.

Less than a month before NYC and PRR began holding hands again the man who knows more about railroad mergers than anyone else in the country issued a prediction which may turn out to be more meaningful as a result of the news. Said John W. Barriger: "I venture to predict that the next great step in mergers will be a regional plan for the East, promulgated or sponsored by the Interstate Commerce Commission. If the Commission defaults in performing this duty, then some other Governmental body will of necessity undertake it. The public interest will ultimately be served."

Barriger's enthusiasm for a master plan stems from the fact that all roads would merge simultaneously whereas what he terms the "present, piecemeal, incomplete and nationally and regionally irresponsible approach to consolidation on a 'pick and choose' basis" means that "railroads excluded from major mergers and their service areas . . . become 'orphans of the storm,' doomed to inferior status, with the only prospect of rescue from it coming from the cheerless possibility that their resulting fiscal deterioration may finally make these properties available for acquisition on a fire sale basis. . . ."

No

Exactly. What exposes so many merg-
er proposals to criticism is the fact that
they are designed for the exclusive bene-
fit of the participants and make little if
any allowance for the fact that railroads
are an interdependent industry. Earn-
ings stem from and could not exist with-
out the interchange of traffic which makes
national freight service possible.
other region, for example, so urgently re-
quires the financial therapy of a merger
as New England, yet consolidation dis-
cussions there ended in a stalemate be-
cause relatively prosperous Bangor &
Aroostook was aghast at the idea of mix-
ing its securities with those of bound-
for-bankruptcy New Haven. And yet
should NH disappear, followed by B&M
and Maine Central, BAR would die in a
vacuum. Naturally no strong property
wants to buy into the debt of Central, say,
or the commuters of C&NW or the thinly
trafficked Pacific extension of Milwaukee
Road, and yet such "orphans of the
storm" are the roads which need merger
benefits most critically.

The Interstate Commerce Commission
reacts rather than acts in our time and
thus far it has considered only merger
proposals submitted by individual car-
riers and has thereby defaulted on its
legal right to draw up regional plans of its
own design. We would prefer that the As-
sociation of American Railroads acting
nationally, or such groups as the ERPC
operating regionally, would face up to the
inevitable and blueprint over-all merger

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Kalmbach Publishing Co. 1961. Title reg. Pat. Off. Published monthly by Kalmbach Publishing Co., 1027 N. 7th St., Milwaukee 3, Wis., U.S.A. BRoadway 2-2060. Western Union and cable address: KALPUB Milwaukee. A. C. Kalmbach, President. Joseph C. O'Hearn, General Sales Manager. Ward Zimmer, Advertising Manager. TRAINS assumes no responsibility for the safe return of unsolicited editorial material. Acceptable photographs are held in files and are paid for upon publication. Second-class postage paid at Milwaukee, Wis. Printed in U.S.A.: YEARLY SUBSCRIPTION, $6; 2 YEARS, $11; 3 YEARS, $15. For life, $60. Outside the Americas, 50 cents a year additional (for life, $5 additional).

MEMBER

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ARRIVALS & DEPARTURES

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HOT: Burlington's hotshot, Advance CD,
covers the 1000-plus miles from Chicago to Den-
ver in 21 hours 45 minutes (pre-Zephyr limited
of 1935, the Aristocrat, took 25 hours 45 min-
utes), and fastest-ever freights CN-7 and NC-8
of Illinois Central are now scheduled over 928-
mile Chicago-New Orleans run in 28 hours flat.
EQUIPMENT: For hauling tobacco in hogsheads,
Southern has come up with world's biggest box
car, a 92-foot 11⁄2-inch job so long it needs sky-
lights in roof at each end to illuminate re-
cesses of interior. . . . Illinois Central re-
cently purchased seven 60-foot postwar (Pullman
1946) streamlined coaches from C&EI for $8050.
Each car cost $60,000 total (purchase price plus
overhaul) vs. an estimated $176,000 apiece for
brand-new cars. Numbered 2500-2506, they're in
service on City of Miami (four), City of New
Orleans (two), and Green Diamond (one). HURRY
UP, I.C.C.!: There's been another train-tank-
truck disaster. On June 21, 1961, a tractor-
trailer with 6200 gallons of gasoline failed to
stop at a grade crossing in Bettendorf, Ia., and
was struck by a Burlington freight moving 10-15
mph with headlight on, horn blowing, and bell
ringing. Resultant fire killed engineer, fire-
man, head brakeman, and driver. I.C.C. investi-
gation of all such accidents is pending. ON UP:
Although carloadings generally were off 7.6 per

cent in the first 46 weeks of 1961 vs. the same
period in 1960, piggyback loadings climbed 5.5
per cent.
Today 59 Class 1 roads originate TOFC
traffic. CHANGING TITLES: Miracle-man William
N. Deramus III, who left the Chicago Great West-
ern to rescue ailing Katy in 1957, has now moved
into the Kansas City Southern president's chair
vacated by his father W. N. Deramus who retains
KCS chairmanship. Charles T. Williams, formerly
Katy's executive v.p., now heads the road. IN
EVENT OF MERGER: Participants have promised no
reduction in Empire Builder, North Coast Lim-
ited, and Zephyr passenger services "as long as
public patronage warrants" in the event of Great
Northern Pacific & Burlington Lines merger.
ROADBLOCKS DOWN: The smoothest merger manager
in the land, Norfolk & Western's Stuart T. Saun-
ders, has pacified two objectors to his proposed
N&W-NKP-Wabash consolidation by offering to ac-
quire Pittsburgh & West Virginia and to reach
"some form of affiliation" with Erie-Lackawanna.
THE FAMOUS FADE: Claiming losses of more than
$6400 a day, Chicago & North Western wants to
drop Twin Cities 400's and Chicago-Mankato
(Minn.) Rochester 400. Bus-level fares and
$1.25 dinners haven't stemmed decline of riders.

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