The record-breaking railroad bankruptcy – Penn Central



In today’s video, we take a look at the Penn Central railroad and how it drove itself into the ground in just 2 years

Please subscribe for more

This video falls under the fair use act of 1976.
This video is available to use under the appropriate Creative Commons Licence.
Any images used that fall under any Creative Commons Licence belong to their respective owners.

source

46 thoughts on “The record-breaking railroad bankruptcy – Penn Central”

  1. I feel like many of us train/railroad/railway YouTubers are currently going through a phase where the main topic is Penn Central; The Railroad You Can't Trust With Your Potatoes. But, I'm not complaining as the 70s were really an interesting time for American rail and the Penn Central was a big player despite being the biggest loser of it all and how incredible it is to see how Penn Central and the old rivalry between the two former railroads pushed the rest of the rail companies in the country in the direction we have now.

    Reply
  2. One other issue that caused problems was a difference in operating philosophy. The Pennsy concentrated on drag freights, serving heavy industry and coal mining. The NYC emphasized carload service and fast freight.

    Reply
  3. I love railways and it's a shame to see one fail.
    I heard that Florida apparently has a quite-new railway company that is apparently doing well – good to hear!
    Maybe lessons from that successful railway could be applied to Penn Central if anyone decides to resurrect what remains of it.

    Reply
  4. Note about Penn Central passenger service……

    Amtrak only addressed part of Penn Central's passenger dilemma. All three component railroads had extensive commuter operations, none of which fell under Amtrak's intercity service mandate. Commuter fares were regulated by the various states' public service commissions, and these were often obstinately opposed to permitting fare hikes, even reasonable ones that would help to improve service. It's why commuter trains into the 1960s and 70s used such decrepit equipment and worn out locomotives. The commuter agencies we know today did not, for the most part, get formed until the 1980s and deregulation.

    The funny thing is, this noose around the railroads' necks wasn't all bad. If there had been deregulation earlier, say in the 1960s or even the 1950s, long-distance and commuter trains might have vanished by the 1980s, and cities like New York and Chicago might now look like Los Angeles with 10, 16, or 20-lane ribbons of clogged highways full of the commuters handled by the LIRR, NJT, Metra, etc.

    Reply
  5. As an aspiring railroad fan, I grew up thinking Amtrak was a company that did travel on rails. I equated it to being the Railroads United Airlines. I was today years old when I found out Amtrak was government owned. Now I know why American passenger services suck

    Reply
  6. The New York, New Haven and Hartford Railroad had already been the victim of the scam run by Patrick B. McGinnis, making it a very poisonous addition to Penn Central.

    And never forget that the competition to the railroads was subsidized: If the roads and air traffic control system had to pay for themselves, the railroads would have been in much better shape.

    Reply
  7. Honestly, it sounds like the Pennsylvania Railroad not only managed to destroy themselves, but every other railroad they touched too.

    Yes, I know the commission didn't help, but I feel even without it, PR would have still found a way to mess things up for everyone.

    Reply
  8. Now while penn central was a bust, the employees that stuck through it were the toughest men I’ve seen in years.

    Hell my great uncle on my dad side was one of em.

    Hired out in the late 30s as a Freight Conductor for the Pennsy and was around right up into early 80s Conrail. Why am I mentioning this? He was photographed and featured in the company’s Employee Magazine around early 1973. Good stuff man.

    Reply
  9. I can never get enough Penn Central content. I’m not even a huge rail fan, but the PC intrigues me because poor planning (or lack thereof), and horrible execution turned two once great railroads into a three ring circus. The merger was doomed from the start. Government overregulation was actively killing the railroad industry, the two railroads were also wholly incompatible. NYC’s president, Alfred Perlman, had intended on NYC merging with the C&O and B&O, while his design had the PRR merge with N&W. Perlman viewed the PRR as a house of cards about to fall, as did N&W. He also knew that there were too much duplicate infrastructure, and management styles too different for them to work together. However, obstinance from the ICC forced them into a match made in hell. Penn Central’s death, ironically was the event that saved the railroad industry in the US.

    Reply
  10. As a Hispanic American I can say that we lived right next to Penn Central tracks back in the 1960’s-70’s here in Maryland we had one forgotten accident when a Penn Central train crashed into the old wooden store thankfully no one was in there and no one was killed or injured but the store was scrapped after the destruction and replaced by a metal one it still stands there but will get a overhaul but no one but my family knows this accident I know this thanks to papa’s brother but hopefully this never happens again

    Reply
  11. What I do know about the Penn Central Railroad is that it was a merger between the Pennsylvania and the New York Central Railroads. Also that it was a complete failure. Before the merger, the Pennsylvania Railroad operated the General Electric GG1 electric locomotives. I believe the best merger was between the Canadian Pacific Railway and Kansas City Southern Railroad to become Canadian Pacific Kansas City (CPKC). It's a profitable win-win situation for the USA & Canada. Increased collaboration between two mighty countries.

    Reply
  12. forget the pun but Penn Central was a train wreck from the start. Adding the New Have just put piss on the fire. It should be noted that Penn Central is the reason we have Six Flags. Because they bought a controlling interest in an amusement park in Texas which became Six Flags Over Texas. I read that in 1974 a Bankruptcy court deemed that PC couldn't be reorganized into a new company. I think the Holding company became Pepsi America. Oh no that was IC.

    Reply
  13. Imagine if the Penn Central decided to go out of business and file a Chapter 7 Bankruptcy to do so. We probably would have seen a cascading collapse of the nation's railroads and a forced nationalization of all the railways under an interstate railway act.

    Reply

Leave a Comment