NYSW future?

As everyone knows..Walter Rich does have cancer..I was discussing this with some buddies last night..what will happen to the railroad in the future? I personally think Walter knew last fall that he had cancer and the outlook wasn't good. Remember the OCS last October? I think shared assets might step in and take it over..thats pure speculation however. I was wondering if anyone else has heard anything on this. Could make sense since NYSW is owned by both CSX/NS. Get the SU99s and 100s now..this traffic could go elsewhere if shared assets gets a hold of things.

I thought about this when I first heard the sad news about Mr. Rich and thought along the same lines you did. However I have come to realize that a company is not 1 man. I'm sure there have been provisions for an event like this in place for years. All big companies have safeguards built in for accidental deaths, and illnesses of their CEO's, and other major company officers. The DO and the NYS&W will most likely go on as is with a new CEO/President in charge IF and when the time comes.

I thought about this when I first heard the sad news about Mr. Rich and thought along the same lines you did. However I have come to realize that a company is not 1 man. I'm sure there have been provisions for an event like this in place for years.

That is the way it should be, however the person who logically would have taken over no longer works for DO. Right now the company's lawyer is running the company - at best I would call it being in "caretaker mode".

Since Walter Rich personally owns most of the stock in DO, there is the very real issue of estate taxes that may force his ownership interest to be sold. My understanding is that NS and CSX have the right of first refusal in buying this interest.

My spies at NS and CSX tell me each company has a different outlook on what to do with the NYS&W. Both involve some degree of breaking it up, but CSX's plan is much more severe, with the NYS&W essentially ceasing to exist.

This will be both interesting and sad to watch. The NYS&W is by far the oldest railroad in NJ operating under the same name (since 1882).

The company is more than one man, and neither Walter nor anybody else fools or stupid. You are talking about a real busines, a corporation, and there are mechanisms in place to carry on the work of the company. The telephone didn't die with Alexander Graham Bell, nor did the electricty go off when Thomas Alva Edison passed. There is no reason for the Delaware Otsego System, NYSW, CNY, or any other entity within the company, to be non existant for any reason.

My spies at NS and CSX tell me each company has a different outlook on what to do with the NYS&W. Both involve some degree of breaking it up, but CSX's plan is much more severe, with the NYS&W essentially ceasing to exist

Although the speculative break up of NYSW and the impending chance that NYSW will no longer exist is very sad, I do think some positive may come out of it! If, as you say, CSX is planning to completely break up the NYSW, it may actually lead to the NYSW line and Southern Tier playing a more important role. I do envision traffic picking up on this line as CSX may route a few trains to Syracuse this way as to take the burdon off of the Riverline. I also don't see how the customers along the NYSW (especially in Sparta) would just dry up overnight. Infact, IMHO, they (CSX or NS) would probably continue to serve these customers under a Shared Assets agreement.

Yeah, you may not see any more NYSW yellowjacket paint schemed engines, but I highly doubt the NYSW/DO lines would be abandonded!

Trying to put more positive perspective on things...

"There is no reason for the Delaware Otsego System, NYSW, CNY, or any other entity within the company, to be non existant for any reason."

Only partly true. Delaware Otsego could go on operating other ventures. But NYSW is just one of those ventures that could easily be bought out, broken up, or shut down at the whim of its stockholders. Maybe "whim" isn't the right word... but when you look at on-line traffic levels and possible alternate routes, NYSW is on thin ice.

I'm going to move this into the Susquehanna forum for additional exposure and points of view.

-otto-

Being that the the NYSW has been around for so long, I would imagine the corporation has plans in place for any CEO who leaves for one reason or another. Like it was said before, the company is more than one man.

I've read that NS/CSX do not have any ownership in NYSW any longer. NS/CSX gave WR the money to buy his share of stocks which has been since paid back. Leaving Mr. Rich majority owner if not full owner.

Where did you read this?

I've read that NS/CSX do not have any ownership in NYSW any longer. NS/CSX gave WR the money to buy his share of stocks which has been since paid back. Leaving Mr. Rich majority owner if not full owner.

Rich owns 80% of the stock, NS and CSX each own 10%. However, DO currently has a three person board of directors with equal voting power, so NS and CSX can outvote Rich 2-1 (or, obviously any combination of 2 votes wins, but one of the people who was one of the directors at one time told me all votes either go 3-0 or 2-1 with Rich being the one).

RE: NYSW and/or DO System: see Mark Twain.

What and why are we talking about this here and now anyway? There is no real reason to believe that there will be any major changes in the immediate future. All parties know what is happening. All parties have been prepared for what is happening. All parties are beyond our presuppositons! Unless there have been plans already announced for the future of the NYSW there is no reason right now to believe that there will be changes just because Walter should pass away.

Steamtown Observer wrote:

I've read that NS/CSX do not have any ownership in NYSW any longer. NS/CSX gave WR the money to buy his share of stocks which has been since paid back. Leaving Mr. Rich majority owner if not full owner.

Rich owns 80% of the stock, NS and CSX each own 10%. However, DO currently has a three person board of directors with equal voting power, so NS and CSX can outvote Rich 2-1 (or, obviously any combination of 2 votes wins, but one of the people who was one of the directors at one time told me all votes either go 3-0 or 2-1 with Rich being the one).

Thanks for clearing that up. Otto, a nysw employee had told us on the nysw yahoo boards.

I also forgot to add this, if something were to happen, why would NYSW make all these capital improvements? Such as all the grade crossings rehabs, all there engines getting completely rebuilt, second sidings/mains, signal masts up in bingo?

I come from a moderate-sized family business that operates amongst giants, sort of like NYSW amongst CSX and NS. Although many times a succession plan and estate/trust is pre-planned, this is not always the case. Since nobody seems to know exactly the state of Mr. Rich's health, legal, or personnel plans, it's a little presumptuous of us to make these predictions. I'm not criticising anybody, but let's wait for some more facts. I've seen many cases of good succession and many cases where the family/board had ample warning of a large change, and didn't act, leading to a mess. Out of respect for Mr. Rich, it might be a good idea to wait til we have more facts.

Also, I too, love NYSW, even though I've never had the pleasure of railfanning it or even seeing their power. All our photos and the work in the magazines highlights a truly unique operation that would be a huge loss to our community of fans, foamers, and pros were it to disappear.

Stay clear of "hearsay", or wild speculations. This topic will remain viable, but PLEASE, add facts, not fiction, or just add your feelings about Walt, and the railroad. Either way, MY personal feelings go out to him, and his family, in this very difficult time. Whatever the outcome, this is some very disturbing news, about the "Q".

GOLDEN-ARM wrote:Stay clear of "hearsay", or wild speculations. This topic will remain viable, but PLEASE, add facts, not fiction, or just add your feelings about Walt, and the railroad. Either way, MY personal feelings go out to him, and his family, in this very difficult time. Whatever the outcome, this is some very disturbing news, about the "Q".

I agree with what you said. To me this entire topic comes right up to the edge of "none of our business". But as long as it is done with out speculation and rumor mongering, it should be ok.