[PRCo] Re: Port Authority approves huge cuts in bus, trolley service | Allegheny Co. News - WTAE Home

[John Swindler]

  Thank you, Ed I need to save this somewhere where I can find it. Trust all is well with you and Janis CheersJohn
 > From: trams2 at comcast.net
> To: pittsburgh-railways at dementix.org
> Subject: [PRCo] Re: Port Authority approves huge cuts in bus, trolley service | Allegheny Co. News - WTAE Home
> Date: Wed, 2 May 2012 15:43:23 -0400
> 
> When West Penn Railways was assembled from its underliers, it came into
> possession of substantial power generation capacity.  West Penn Power was
> assembled from other underlying companies, and had a separate corporate
> existence apart from Railways, although under a common parent.  In 1914, the
> parent entered bankruptcy due to the shenanigans the bankers from McKeesport
> (the Kuhns) played in buying western lands that couldn't be farmed, dammed
> or sold, etc.  Two years later the parent emerged from receivership ON THE
> STRENGTH OF THE RAILWAYS COMPANY'S EARNINGS.  That was probably the first
> and only time it ever happened in the trolley industry!
> 
> But I digress...also in 1916 the West Penn companies were reorganized to
> better match their corporate purposes, and in the process, Power took over
> the generation and supply properties.  In return, Railways got 833,000, give
> or take, shares of Power common stock, which of course was paying a
> dividend, as was Railways at the time.  Naturally, most of those internal
> dividends made their way to the parent.  But after 1920, Railways was no
> longer able to pay its debt service out of the fare box, and instead relied
> on the dividend income to pay the interest on the due-in-1960 bonds.  This
> is why Railways always showed a profit, even in the darkest days of the
> Depression.  It was clear to the company as early as 1930 that they would be
> getting out of the streetcar business; they just didn't know when.  But as
> long as the Railway company wasn't costing anything in the way of capital
> expenses, the powers that be figured that the trolley company represented a
> small cost of being a really good neighbor, all the while helping to grow
> the Power company.
> 
> In 1948, the final reorganization took place, at a time when Power had great
> need of capital to expand its reach to the fast-filling suburbs.  The parent
> took the Power stock from Railways, and simultaneously accepted
> responsibility for paying off that 1960 bond issue.  Abandonments occurred
> shortly thereafter...first, to see if bus substitution would work (it did
> not), and thereafter as revenue declined sufficiently to preclude
> continuation.
> 
> Questions?
> 
> Ed
> 
> -----Original Message-----
> From: pittsburgh-railways-bounce at lists.dementix.org
> [mailto:pittsburgh-railways-bounce at lists.dementix.org] On Behalf Of Phillip
> Clark Campbell
> Sent: Wednesday, May 02, 2012 11:39 AM
> To: pittsburgh-railways at dementix.org
> Subject: [PRCo] Re: Port Authority approves huge cuts in bus, trolley
> service | Allegheny Co. News - WTAE Home
> 
> Please tell us what Mr.Lybarger wrote.
> 
> 
>  
> Phil
> 
> 
> 
> 
> ----- Original Message -----
> From: John Swindler <j_swindler at hotmail.com>
> To: pittsburgh-railways at dementix.org
> Cc: 
> Sent: Wednesday, May 2, 2012 11:18 AM
> Subject: [PRCo] Re: Port Authority approves huge cuts in bus, trolley
> service | Allegheny Co. News - WTAE Home
> 
> I like the idea of a mix of support for transit.  The state provides a
> 'floor', and then the locals can decide how much additional transit service
> is wanted.  As it is, $184 million can buy a lot of transit service.  That
> was the state operating subsidy last year for PAT.  But PAT costs are about
> $150 per vehicle hour, about the same as SEPTA which runs a commuter rail
> service.  The costs elsewhere is around $70-$90 per vehicle hour.  There's
> just something strange about PAT's expenses, but could never figure it out. 
> Remember what Ed once said about West Penn power dividends?? 
> 
> 
> 
> 
>