Was PRSL solvent going into Conrail?

Discussion relating to the PRSL

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tomjohn

Was PRSL solvent going into Conrail?

Post by tomjohn »

I don't know if this was already posted, I heard some where in the past that THE P.R. S. L RR was the only solvent segment of CONRAIL, is this fact or just fiction?

Tom S.

mitch kennedy
Posts: 117
Joined: Sun Jun 04, 2006 8:45 pm
Location: Lewiston Maine

Post by mitch kennedy »

HI-this is part fact, part conjecture based on fact, so other opinions are welcome... on paper, according to all the PRSL books, they lost money save for a year or two during the second world war. But this was account of how the PRR and Rdg set the PRSL up financially. All costs for per diem (car hire owed foreign roads on a daily basis ,based on type of car and age) was owed the PRR/PC and Rdg on a 2/3-1/3 basis based on ownership. This was why, intentionally, no PRSL revenue freight equipment existed. Look at a Moody's Annual in the 60's and only a handful of class one lines ever broke even on this, so the PRSL with no cars had no chance. In fact, when the PRSL sold off a large parcel of land on the Penns Grove line for a million or so, when the PRSL wanted to use it for motive power, the Rdg, in chapter 11 at the time, strongarmed the PRSl into giving it all on past due car hire costs. Add in the fact the PRSL was charged for every piece of PRR/PC motive power, caboose and passenger equipment leased up to CR, and you can see it was an accountant's fantasy come true. As for actual revenue, one could look up FRA data on line, but I suspect even discounting subsidized passenger losses, the originating/terminating nature of the operations made for a high operating ratio, but probably appreciably lower than other CR constituents. We welcome opposing points of view, along as they don't disagree!!! Hope this helps!
Mitch

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