02Pilot said:
I know I posted this previously, but I caught the Pan Am OCS rolling (slowly) through Old Orchard Beach, ME two years ago. It was a pretty train - you'd never know the rest of the railroad was such a dumpster fire.
That's a pretty rare catch with PAR #2 leading, usually it was PAR #1 in the lead. Funny thing is that those GMD (not EMD, because they were built in Canada) FP9s came from Conway Scenic. They had bought them from VIA Rail and then ended up trading them for an ex-Maine Central GP38 and an ex-NS high hood GP35, when Conway started moving towards second-gen road switcher power for their primary usage. The B&M F7s we rode behind last year at Conway are not owned by Conway, but by 470 Railroad Club. (Side note, I'd like to go on that 470 Railroad Club charter again this year, now that I have an actual camera, and see if it's a little better run)
I've read a lot on the D&H side of Guilford Rail Systems/Pan Am, and it's pretty sad. By that point, the D&H was in fairly bad shape, Norfolk & Western wanted rid of it before the Norfolk Southern merger went through, and N&W was offering the whole railroad, all the tracks, equipment, buildings, everything, for just $500,000. Tim Mellon, who had already bought the Maine Central and was in the process of buying the Boston & Maine, expressed interest and everyone really thought that it was a great idea at the time. As early as 1967, D&H president Frederic "Buck" Dumaine had put forth the idea of a B&M/MEC/D&H merger and tried to force it through, but lost the fight to the D&H board and was ousted. At the time, the D&H was pretty profitable still and the board was worried about diluting their stocks by going in with the sickly New England roads. The B&M was also supposed to be included into N&W control under Dereco, alongside the Erie-Lackawanna and D&H, but missed their window due to shortsightedness by B&M management.
The D&H interchanged with B&M pretty heavily, although a lot of the traffic from the B&M was not terribly profitable due to the short haul between Mechanicville to Binghamton and expensive trackage rights further west from Binghamton to Buffalo, and the Maine Central extended their reach all the way up the Atlantic coastline. Tim Mellon was quite wealthy (he's of the Andrew Mellon family) so a lot at the D&H thought of it as "Oh, this wealthy billionaire is going to step in and save us. It's going to be great." The D&H had a lot of great people and a decent customer base, but it needed the money to overhaul the infrastructure and get some new locomotives, and Mellon could potentially provide that. Guilford promised that D&H carloads would go up by a 45,000 cars annually once it was integrated into the system, which also sounded great.
It pretty much started to fall apart immediately. Kent Shoemaker, who was really only supposed to be a temporary president when he signed on in '78 anyways, wanted out and so David Fink installed his buddy Charlie Mckenna as president, even before Guilford took over. Providence & Worchester actually protested that move, saying that Guilford was exerting influence over D&H before they owned it, but by that time the sale had already gone through. When the sale went through, they had a big press event at Billerica and David Fink was up on a podium saying "All these other railroads, CSX and ATSF and BN, they're just initials, but here at Guilford, we're a family", and then immediately stepped down off the podium and literally right onto D&H Vice President for Administration and Strategic Planning Bill Collins' shoes. Collins said it was a pretty fitting start for how things kicked off, and he still has the shoes with the crushed-in tips as a reminder.
Jervis Langdon Jr., who was director of the D&H and had brought Bill Collins on board, had led the charge for the sale to Guilford, thinking that it was the only way out for the D&H, after the federal government had so badly screwed the D&H in the 1976-1981 and N&W had largely neglected the D&H from 1968-1981. He left pretty early into Guilford ownership and even though Langdon never came out and said anything so, those who knew him said they always got the feeling that Langdon felt that he had made a major mistake getting them in bed with Mellon and Fink and Guilford Rail System as a whole. Later on, Langdon told the NYSDOT that "When Guilford started, it had some fine people, but they have all left or been fired. Tim Mellon, who knows nothing about the business, has delegated authority to those who think they know but actually don't."
Also, pretty early on, Bill Collins said that his office should have been equipped with a revolving door. Employees were constantly coming in and going "Hey, Bill, how do I get out of this place?" and a lot of the major talent quickly beat feet out the door. Guilford was reselling all the D&H locomotives to Maine Central or Springfield Terminal, selling off buildings and real estate left and right, and not really reinvesting anything into the D&H. Howard Hontz, who was assistant president of operations and had been with the D&H for 41 years and change, saw what was happening and didn't like what was happening to the D&H and turned in his resignation, which was met with argument from Dave Fink who told him that they wouldn't accept it because they were going to make Hontz the head of the entire north east. Hontz told them like hell they would and left.
D&H chief mechanic officer Fred Cheney mentioned how for a while he struggled to figure out how Dave Fink would always know every little bad thing that happened at the D&H. He then realized that D&H and B&M employees lived right next door to each other in Mechanicville. Cheney reported directly to general manager Dick Williams, and Williams lived in Mechanicville and was friends with VP of operations at the B&M, Sydney Culliford. Williams would anecdotally tell some of the going-ons at the D&H, and Culliford would immediately go run to Dave Fink and tattle on the D&H over any of their screw-ups to earn brownie points. Then Fink would call up Charles Mckenna and send Mckenna to the D&H offices loaded for bear and tear them a new one.