Railroad Bankruptcies and Mergers from Chicago West: 1975-2001: Financial Analysis and Regulatory Critique (Volume 7)

by Michael Conant

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.

166 pages, Hardcover

First published February 12, 2004

About the author

Michael Conant is the publisher and founder of Incorgnito Publishing Press.

Before entering the world of book publishing, Michael spent over twenty years in b2b publishing. He served as a circulation, sales, and marketing executive, managing products across several industries, with a concentration in financial publications.

Prior to his foray into publishing, Michael pursued his love of theater as an actor, singer, director, and producer at regional theaters, dinner theaters, and at several Off-Off Broadway theaters. Michael introduced New York audiences to the American premier of Hal Shaper's musical adaptation of Jane Eyre, which featured Michael as Rochester along with a very young Alyssa Milano as his ward, Adelle.

Shortly after moving to Pasadena, CA, Mr. Conant was introduced to Cure Mito, an organization of "Mito Moms" dedicated to funding Mitochondrial Disease research in support of Dr. Richard Boles at Los Angeles Children's Hospital. Michael helped the group secure non-profit status and was elected as the organization's first president.

In between his publishing duties and new writing efforts, Michael plays a lot of tennis with his South Pasadena, Arroyo Secco teammates. He also spends free time visiting with family and getting "puppy" kisses from his niece's lovable, crazy Bernedoodle, Bentley. (b3ntley_zefluff on Instagram)

Mr. Conant is also the co-author of David Margrave: The plumber who outwitted the IRS. He may be contacted at mconant@incorgnitobooks.com
https://www.incorgnitobooks.com