Bachmann - 4360 - Passenger Train, Electric, North American, Modern Era - Penn Central

Prototype History: The modern era of rail transportation service in North America is dominated by Amtrak and Via Rail. Amtrak serves the United States and Via serves Canada. Local light rail in the form of various commuter railroads is also prevalent in major metropolitan regions.

The replacement of rail transportation by the highways system and modern air travel spelled the doom of competitive rail transportation in the 1970s. The only way rail passenger service could continue was with consolidation and subsidization under the respective national governments. All passenger service routes and equipment was consolidated and transferred to the new rail systems during this period.

Electric rail is primarily limited to commuter rail and the Northeast Corridor in the United States.

Road Name History: The Penn Central Transportation Company, commonly abbreviated to Penn Central, was an American Class I railroad headquartered in Philadelphia, Pennsylvania, that operated from 1968 until 1976. It was created by the 1968 merger of the Pennsylvania and New York Central railroads. The New York, New Haven & Hartford Railroad was added to the merger in 1969; by 1970, the company had filed for what was, at that time, the largest bankruptcy in U.S. history.

The Penn Central was created as a response to challenges faced by all three railroads in the late 1960s. The northeastern quarter of the United States, these railroads' service area, was the most densely populated region of the U.S. While railroads elsewhere in North America drew a high percentage of their revenues from the long-distance shipment of commodities such as coal, lumber, paper and iron ore, Northeastern railroads traditionally depended on a mix of services.

As it turned out, the merged Penn Central was little better off than its constituent roads were before. A merger implementation plan was drawn up, but not carried out. Attempts to integrate operations, personnel and equipment were not very successful, due to clashing corporate cultures, incompatible computer systems and union contracts. Track conditions deteriorated (some of these conditions were inherited from the three merged railroads) and trains had to be run at reduced speeds. This meant delayed shipments and personnel working a lot of overtime. As a result, operating costs soared. Derailments and wrecks became frequent, particularly in the midwest.

The American financial system was shocked when after only two years of operations, the Penn Central Transportation company was put into bankruptcy on June 21, 1970. It was the largest corporate bankruptcy in American history at that time. Although the Penn Central Transportation Company was put into bankruptcy, its parent Penn Central Company was able to survive.

The Penn Central continued to operate freight service under bankruptcy court protection. After private-sector reorganization efforts failed, Congress nationalized the Penn Central under the terms of the Railroad Revitalization and Regulatory Reform Act of 1976. The new law folded six northeastern railroads, the Penn Central and five smaller, failed lines, into the Consolidated Rail Corporation, commonly known as Conrail. The act took effect on April 1, 1976.

Read more on Wikipedia.

Brand/Importer Information: Bachmann Industries (Bachmann Brothers, Inc.) is a Bermuda registered Chinese owned company, globally headquartered in Hong Kong; specializing in model railroading.

Founded in Philadelphia, Pennsylvania, the home of its North American headquarters, Bachmann is today part of the Kader group, who model products are made at a Chinese Government joint-venture plant in Dongguan, China. Bachmann's brand is the largest seller, in terms of volume, of model trains in the world. Bachmann primarily specializes in entry level train sets, and premium offerings in many scales. The Spectrum line is the high quality, model railroad product line, offered in N, HO, Large Scale, On30, and Williams O gauge all aimed for the hobbyist market. Bachmann is the producer of the famous railroad village product line known as "Plasticville." The turnover for Bachmann model trains for the year ended 31 December 2006 was approximately $46.87 million, a slight increase of 3.36% as compared to 2005.