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July 1989 - Page 12

s urplus a s s e t s than m a n a gement could. The April 1 9 announcement fur ther befuddled observers by stating Japonica's intention to pay a "substan tial premium" over the $31 -per-share Gibbons, Green, von Amerongen pro posal of 1 987, and noting its receipt of proposals to finance such a bid, which it was "evaluating . " Analysts com mented that the offer to beat $31 per share was practically worthless be cause CNW was already trading at $40 per share on the open market. Antho ny Hatch of Paine Webber told the C HICAGO TRIBUNE t hat, because of Japonica's antics, "people can't figure out whether they're just inept or have something really clever up their sleeves." Preparing for the expected battle for CNW at the May 1 6 annual meeting, Japonica said that if it gains control of the company, it would fire the present management, substituting C. Howard Hardesty, former president of Purola tor Courier Corp., as chairman; c.L. Pecchinino, former IC Industries chief operating officer, and Japonica princi pal Paul Kazarian as vice chairmen; and Henry Borgsmiller, former Illinois Central Gulf vice president, as chief operating officer.

C. R. Prather
MdeIP Farewell

Thanks to Carl Swanson and Michael M. Bartels.


The all-steam Ferrocarril Mexicano del Pacifico (Mexican Pacific Railroad) is expected to cease operations at the end of the 1989 sugar harvest, which usual ly ends by July. MdelP's sole customer is a sugar mill (ingenio) at Los Mochis, Sinaloa, that the government-con trolled sugar administration is closing as part of a nationwide program to eliminate inefficient operations. The railroad's two 2-6-2s, Nos. 6 and 7, and 2-8-2 No. 4, are used to switch cars at the ingenio and to interchange freight cars with the FNM (ex-CHP). At one time, MdelP was used to haul sugar cane to the mill. The November 1 969 Official Guide listed two branches on the Mexican Pacific, the 10.47-mile main line to Mochicahui and an 1 l .95-rnile branch to Camp 14. The listing for MdelP had an interest ing note that indicated the sole pur pose of the line-"Service suspended from July 1 st to December 1 st." An effort to save the mill and rail road as a museum and tourist railroad has been started, but the scrap value of the complex may cause the sugar ad ministration to sell the property. When sugar production at Los Mochis ends, the last steam industrial railroad will bank its fires in Mexico.
Passenger News

Twen ty new regular first-class coaches have been completed by CNCF this year. The Mexican railcar builder has delivered its first newly constructed diner. There is no new Star Service train to report on this month. FNM is again proposing to operate a second day train on the Mexico City-Quare taro route. The new train would run to Mexico City in the morning and return to Queretaro in the afternoon. Extra cars have been added to El Tren del Pacifico (G uadalajara -Nogales / Mexi cali) and, because of the number of passengers, the free dining car meals have been replaced by box lunches. The diner is still on the train for those who are willing to pay for a hot meal. This was the only Star Service train that gave coach passengers dining car meals.
E lectrification

(Repro. . mfg. date stamped on back) C onductors Cap w/Sripes C onductors Cap w/o Stripes

Conductors Cap Badge only



(Cap only no badge) . . . . . . 28.00
..... ..........

Conductors Cap w/Badge

28.00 55.00 BaseballStyle Cap (NYBM Lines logo) . . . . . . 6.95 BaseballStyle Cap (Gateway logo) . . . 6.95 TShirts (NYBM Lines logo) . . . . . . 8.95 TShirts {Gateway logo) . . . . . . . . . . . . 8.95 Rutland Notepads . . . . . . . . . . . . . . . 4.00
(Cap only no badge)
O RIGINAL Conductor or Trainman Badge

. . . $48.00

FNM has adopted three strategies for its passenger service: eTo continue providing service be tween major population centers with heavy passenger demand; to make the service more comfortable and punctu al; and to continue to offer reduced rates for the lowest-income population. eTo establish new passenger trains of high quality. These trains will com pete with the bus, airlines and private autos for the middle-income traveler. eTo restructure or discontinue ser vices that are unproductive, especially where highway service is more effi cient. The federal government has stopped paying FNM some of the subsidies for the operation of passenger service. The railroad hopes to make money on the new "Star Service" trains and use the profits to finance the money-losing op erations.

T he long-delayed electric operation of the Mexico City-Quaretaro line is expected to begin limited operation this summer. The railroad will finally be able to use the 39 GE E60Cs (EA1EA39) that were purchased in 1 983. The Mexican Government is looking at the possibility of increasing the elec trified trackage to 600 km by adding 84 km from Queretaro to Irapuato and in stalling catenary on the Mexico City Veracruz (via Orizaba) route between Los Reyes and Paso del Macho, with a segment from Cordoba to Tierra Blan ca. Some readers will recall that the Mexican Railway electrified this same route between Esperanza (seven km east of Los Reyes) and Paso del Macho in 1 923, but the new electrification will be on the new lower-grade route be tween Los Reyes and Encinar (near Orizaba). The 1923 electrification was used until about 1 974 when the NdeM dieselized the line with an order of C630s from MLW.
S horts

T Order: Please specify style, logo, size, etc, Add $3,00 o

Shipping & handling per order, Vermont residents add

4% sales tax, No P,O, addresses. Street adress required
for UPS delivery, Send check or money order to:

Depot Hobbies & Antiques
43P Hemlock Rd., Milton, VT 05468

The ex-FUS trackage to Merida is re ported to be in poor condition. There' are numerous slow orders and trains are running very late . . . Work has begun on the Monterrey subway sys tem . . . The ORANGE COUNTY REGISTER r eports that FNM has a new service whereby reservations and ticketing can be done in the USA. The address is: Mexico by Rail, PO. Box 3508, Laredo, TX 78044 . . . PA4 DH- 1 9 made two trips between Empalme and Guadala jara in March before being released into regular (Star) service . . . There is talk of establishing rail service between San Antonio, Texas, and a connection with E l Regiomontano at Nuevo Laredo.

Thanks to Sam King, Ed Von Nordeck, Bill Farmer and EXCELSIOR

12 J ULY 1989

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