The other night I was having a conversation with another frequent poster here. We often talk about mergers past, present, and future. The topic of EL came up. Erie didn't really need the Lackawanna. Merging it gave Erie more market penetration, especially in Pa, and the Southern Tier. They were also able to combine the eastern terminal, and parallel lines, especially Binghamton to Buffalo. On the other hand, it gained a much more complex passenger operation, in NJ. It also gained more access to NE Pennsylvania, which was already over saturated.
Here is the major question. Did Erie want to kill some competition? Look at the C&NW-CGW merger. On the other hand, did they do it to keep someone else out? Nickel Plate refused to merge, due to Lackawanna's poor financial state. If it was allowed to fail, could Nickel Plate have picked it up in a fire sale? If that happened, might Lackawanna have been able to cut commuter service, and facilities, under federal bankruptcy protection? The resulting merger would have certainly made a better system, than the Erie had. NKP served more industrialized sections of OH, and IN, and also served St. Louis.
Let me know what you think about this theory.
Here is the major question. Did Erie want to kill some competition? Look at the C&NW-CGW merger. On the other hand, did they do it to keep someone else out? Nickel Plate refused to merge, due to Lackawanna's poor financial state. If it was allowed to fail, could Nickel Plate have picked it up in a fire sale? If that happened, might Lackawanna have been able to cut commuter service, and facilities, under federal bankruptcy protection? The resulting merger would have certainly made a better system, than the Erie had. NKP served more industrialized sections of OH, and IN, and also served St. Louis.
Let me know what you think about this theory.