Eastern Railroad Discussion > CP + NS or CSX and the Chicago factor

Hunter Harrison's big dream is to control Chicago.  He's said as much.  That means getting control of either BRC or IHB.

IHB was owned 51% by Conrail and 49% by CP.  The CR portion is now 25.5% for each of NS and CSX.  It doesn't matter who CP merges with it would control IHB. 

If that happens everyone else will get screwed you can bet on it.

Bill Miller
Galt, ON

CCMF Wrote:
-------------------------------------------------------
> Hunter Harrison's big dream is to control
> Chicago.  He's said as much.  That means getting
> control of either BRC or IHB.
>
> IHB was owned 51% by Conrail and 49% by CP.  The
> CR portion is now 25.5% for each of NS and CSX. 
> It doesn't matter who CP merges with it would
> control IHB. 
>
> If that happens everyone else will get screwed you
> can bet on it.


Unless the STB makes them sell 24.5% to CSX...lol

I dont see any way another merger of this magnitude would be allowed to fly, either by "regulating bodies" (whom we all know can be bought off) or more importanly, the other major railroads and shippers.  The lawsuits and court actions in response would go on for years.  An older example would be the CMSP&P (milwaukee road) merger talks with the Rock Island and the CNW in their various forms.  If one of these mergers had gone through there is quite the possibility that the pacific extension would still be around.  Instead, lawsuits and court actions and disagreements over the terms went on for over a decade and by the time it was given the ok, the CNW at least, was no longer interested, instead going with the UP.  I just dont see this being an open/shut merger.

CCMF Wrote:
-------------------------------------------------------
> Hunter Harrison's big dream is to control
> Chicago.  He's said as much.  That means getting
> control of either BRC or IHB.
>
> IHB was owned 51% by Conrail and 49% by CP.  The
> CR portion is now 25.5% for each of NS and CSX. 
> It doesn't matter who CP merges with it would
> control IHB. 
>
> If that happens everyone else will get screwed you
> can bet on it.

Don't count on it...

The Conrail division was stymied by the question of who would control the lucrative NJ ports and terminal area. And less so by who would get Philly and Detroit. That's where the concept of Conrail Shared Assets came in.

It's not inconceivable that something similar might come out of combining parts of BRC and IHB and certain other facilities into a true terminal railroad as part of any future combination of rail companies.

Not saying it will happen but there's a good workable alternative if it's needed.