LVRR takeover of CNJ Penna operations

As I understand it, the CNJ did not renew their lease of the L&S in 1972 and ended operations in PA. However, the LVRR took over their PA operations and trackage, including the massive A'town yard.

Did the LV sign a lease with the LC&N to use the L&S? Did they actually buy the tracks, yard, etc? Or did the CNJ just deed everything to them free of charge to get rid of it?

The CNJ ended ops with little notice and without approval of the ICC. The ICC then gave the LV an emergency order to operate the lines...

At that time the Reading owned all of the L&S lines, purchased from the LC&N in 1963, and leased back to them from that point on. The LC&N was the sub-lessor to the CNJ and then the LV.

And even with the CNJ traffic, the LV couldn't make it financially

Never did make sense to me why the LV wanted the CNJ main along the Lehigh River since it paralleled theirs on the other side. I think after '72 the LV used the CNJ main more than and downgraded their own.

I'm pretty sure the LC&N owned the rail lines until 1978 (not 1976) when they sold them to Conrail.

[edit] never mind - thanks, 56-57, for filling in the missing piece. Moody's says

In June 1978 Conrail acquired from the Lehigh Coal & Navigation Co. its leasehold interest in the Lehigh & Susquehanna Railroad for a cash consideration of approximately $5,200,000.

So did Conrail acquire title to the lines from the Reading in 1976, subject to the LC&N lease? Or did the Reading trustees continue to own the lines until later?

I don't know.

I had heard 1978 as the year CR paid LC&N for their interest. If I'm not mistaken, the same went for the Allentown Terminal Railroad, which still existed as a corporation. And, interestingly enough, was owned 50/50 between LC&N and the Reading Co. LC&N did NOT sell their portion to the Reading, and so until 1978, the mile or so of mainline between R tower and East Penn Jct,/Auburn St. was partially owned by a nearly bankrupt coal company!

See if Moody's alludes to that if you could. I'd be curious to see if it's correct as I recall reading it.

Micah

The LV and CNJ started combining their PA operations in the mid 60's, since the traffic levels were dropping and could not support the maintenance on two parallel lines. When the LV started using CNJ's A-town yard, they closed Richards and most of Florence Yards. Lehighton Yard also was downsized and a connection from the CNJ 'down the ramp' to the LV was installed.

The LV kept their freight line between A-town and Easton partly as a by-pass around A-town Yard. I think the Apollos and Mercurys (TOFC) used this route to avoid congestion in the Yard. Most traffic used the LV from Easton to Bethlehem, where a connection was installed on the RDG bridge over the Lehigh River. They then ran on the CNJ up to Lehighton, then back on to the LV for the trip through the Gorge.

So, since the LV was already dependant on the CNJ's physical plant, this made them the natural RR to take over service in '72.

In "Death of a Great Company" a book about the LC&N company, it was explained that the LC&N sold the L&S to Conrail for $5.2 Million and then took the money and invested it into a confectionery company. At that time, the lease payments the L&S generated were essentially the LC&N's last revenue source. Everything else had been sold and distributed as special dividends.

About the Allentown Terminal:

Moody's 1976 wrote:History: Chartered under the laws of Pennsylvania, Aug. 20. 1888, and opened for operation in 1890.
Lease: In 1889 the road was leased for 999 years to The Lehigh Coal and Navigation Co. and the Philadelphia & Reading R.R. Co., at an annual rental equal to the interest on bonds, taxes and 5% on the capital stock. Now operated jointly by the Central R.R. of New Jersey and the Philadelphia & Reading Ry. Co. (latter merged Jan. 2, 1924, into, and its agreement assumed by the Reading Co.)
Line of Road: Extends from East Allentown. Pa., to a connection with the Lehigh & Susquehanna R.R. 2.85 miles. Branches, 0.93; total, 3.78. In addition there are 0.37 mile of additional track, 4.12 miles of sidings. Standard gauge.
[...]
Capital Stock: 1. Allentown Terminal Railroad Co. stock; par $50:
AUTHORIZED—9,000 shares; outstanding, 9,000 shares; par $50.
OWNERSHIP—Central R.R. of New Jersey owns 4,500 shares, pledged under that company's general mortgage. The Lehigh Coal & Navigation Co. also owns 4,500 shares.

I believe Conrail acquired the Allentown Terminal property in 1976, meaning that all the LC&N retained was its partial leasehold interest. I can't find anything relating to this after 1976.

Outstanding! Thanks for finding that and posting it!

MJK

56-57 wrote:The CNJ ended ops with little notice and without approval of the ICC. The ICC then gave the LV an emergency order to operate the lines...

At that time the Reading owned all of the L&S lines, purchased from the LC&N in 1963, and leased back to them from that point on. The LC&N was the sub-lessor to the CNJ and then the LV.

The sudden end of operation in PA makes more sense to me. For starters, I'm pretty sure that the CNJ signed a 999 year lease on the Lehigh & Susquehanna, not a 99 year lease. Besides, the CNJ operated it for a little over 100 years, so the idea that they let a 99 year lease expired kind of falls apart. Although I can see how people would think that. Of course, if I'm wrong, someone please correct me.


What about the Lehigh & New England Railway that the CNJ operated? I know that was their "subsidiary" that operated the former LNE lines which they took over after that railroad ceased operations. Did CNJ abandon that operation too when the left PA? If so, who operated it? Did the LV operate it or possibly the RDG?

Well, to start, the CNJ signed a 101 year lease with LC&N for the L&S. So really all the trustee did was elect to let the contract lapse. (How's that for good timing!?!)

The L&NE Railway continued operating as a CNJ subsidiary until 1975. So yes, there was a CNJ RS3 in Tamaqua until then, and a few of them running between Bethlehem and Uhlers too. The L&NE Rwy. was profitable for the CNJ, and as such didn't qualify for a (USRA??) garenteed loan for which they applied. When they were denied the loan, the CNJ pulled the plug. RDG ran the segment from Tamaqua to wherever the trees took over (Lansford I suppose), while the LV then ran the Cement lines. I don't know if ownership was transferred or not. I do know that of all the constituent railroads that formed CR, all of them settled out of court with the Federal Government on prices for their properties, EXCEPT the CNJ and L&NE RWY.

Quite a bit behind the scenes, eh?

MJK

The LC&N lease was for 999 years:

ICC Finance Docket No. 16211, Central Railroad Company of New Jersey Securities Modification, 1949 wrote: Generally speaking, the lines of the applicant lying within the State of New Jersey are owned by it, while its Pennsylvania properties are operated by virtue of a lease, entered into on March 31, 1871, with The Lehigh Coal & Navigation Company, together with related agreements, pursuant to which the applicant leased the so-called Lehigh and Susquehanna and branches during the corporate existence of the respective companies but not in excess of 999 years.

Honestly, I'd heard both 101 years and 999 years quoted. However, you're showing evidence to back up 999 years, and I'll accept that.

MJK

It's likely that 101 years was someone else's misinterpretation that was passed to you.

Do you know who operated the present "Palmer Township Rail Trail", splitting off the L&S near PA 33 west of Easton and curving around to parallel Hope Road, after 1972? This was owned by CNJ subsidiary and lessor Central Railroad of Pennsylvania, formerly the Easton and Western Railroad; did the LV take over its operation too?
There was also the ex-Wilkes-Barre and Scranton Railway along the west bank of the Lackawanna south of downtown Scranton, which was conveyed outright to the CNJ in 1963. However, it had been leased to the LC&N in 1888 (and immediately subleased to the CNJ), so it may have been grouped with the LC&N-leased property owned by the Reading. (Rather strange setup if that's true - CNJ owns the line and leases it to the LC&N, which subleases it back to the CNJ.)

I hate to say it, but I don't honestly know.

An educated guess would tell me the LV was at least given the authority to run over those lines, whether or not they did, or had to, is another matter.

I like this, it's like CNJ Jeopardy!

Micah