If the PRR and NYC had decided that the Penn Central merger wasn't worth it because of the ICC's condition of taking in the New Haven. I mean, UP did it with the Rock Island when the ICC tacked on alot of conditions that they refused to abide by, so why not the PRR and NYC? Would a crisis have been averted? How long would the PRR and NYC have survived on their own? (Especially the PRR. The NYC was being managed rather well by Perlman, so we can assume that it would have continued down that path.) What would have happened to the New Haven? What about the eastern railroads like the Reading that were decimated by the Penn Central?
I have thought about this question myself at various times. I agree that the New York Central was far better managed than
the Pennsylvania was and may well have made it on its own. Perlman was a very good railroader and he had some very good
people under him. Sometimes his theory was that you had to spend money in order to save money down the road and he was
very good at that.
As for the New Haven, I worked for them at the time and of course like all of the other New Haven people, I was very
concerned over just what was going to happen. As it was the main line was just too important to let go and I think the local
governments (states and cities) were beginning to realize that. It sure took them a long time to act.
Unlike some others, I do not put the full blame on the Penn Central for the cuts that took place on the New Haven after they
took it over, business was falling by the wayside as industry closed down or moved away leaving nothing but abandoned
buildings and vacant property as they left. It was very, very evident that the New Haven could not survive on its own any
longer and the authorities though the Penn Central was a cure all, turned out it was and did not cure anything.
There are a lot of reasons that the Penn Central did not make it, poor management especially from the PRR side was a prime
reason, the pasenger losses did not help, the loss of freight business did not help either. High taxes by some communities
and excessive benefits to some employees added to the problems. There are probably some more too.
Noel Weaver