Leaders Count

[Engineer Spike]

I read Leaders Count again. It talked about MP having been a better merger partner than Frisco, due to the chemical traffic in the Gulf region.

Should the Frisco merger have been three way, and include Katy? This would at least given BN a eastern route to Texas. Did Katy have any of the chemical traffic?

In hind sight, UP now has the Katy and MP, as well as Cotton Belt. This sewed up that region, except for the trackage rights given to BNSF, as a result of the SP merger. Please give me your thoughts.

[Buffalobillho]

Spike: One thing you have to remember was, Lou Menk was CEO of the BN when the Frisco deal was done, and he had been previously President of the Frisco. He was very familiar with the property. Also the Frisco was a relative bargain compared with what the UP paid for the MoPac a few years later. All of that Captive Chemical traffic pushed up the price.
Bill

[Engineer Spike]

I realize that Frisco was cheaper. I just think that they should have gone for Katy too. It was a weak company, which might have given the combined BN-Frisco better market penetration into the south central region. It would have been cheap to buy too.


My perspective is whether it would have put BNSF in a better position against UP. As I stated, UP has MP, Cotton Belt, AND Katy lines wrapped up.