Santa Fe Pacific Corporation
| Santa Fe Pacific Corporation | |
|---|---|
| legal form | Corporation |
| founding | December 23, 1983 |
| resolution | December 22, 1995 |
| Reason for dissolution | Merger with Burlington Northern Inc. |
| Seat |
Chicago (1983–1990) Schaumburg (Illinois) (1990–1995) |
| Branch | Transportation, energy |
The Santa Fe Pacific Corporation (SFP) was an American holding company that existed until 1995 . Until 1989 the name of the company founded in 1983 is Santa Fe Southern Pacific Corporation (SFSP). Its most important subsidiaries were the railway companies Atchison, Topeka and Santa Fe Railroad (ATSF) and Southern Pacific Transportation (SP).
history
The Santa Fe Industries (Atchison, Topeka and Santa Fe Railway) and the Southern Pacific Company (Southern Pacific Transportation) also intended to use the new freedoms in the deregulated American railroad sector after the Staggers Rail Act was passed . The two companies founded the Santa Fe Southern Pacific Corporation in October 1983 , mainly at the instigation of the new chairman and chief executive officer of the ATSF, John J. Schmidt . The merger, which was carried out in the form of a share swap, was valued at $ 5.2 billion and took place on December 23, 1983. A share in Southern Pacific was exchanged for 1,543 shares in SFSP and a share in Santa Fe Industries for 1,203 shares in SFSP. The two railroad companies were the most inefficient of the large US railroad companies at the time. The merger of the two railway companies to form the Southern Pacific & Santa Fe Railway still had to be approved by the Interstate Commerce Commission .
The new company had assets of approximately $ 11 billion. The property and real estate management of the two companies generated around a third of the revenues (2.1 billion dollars). The Santa Fe owned areas of around 16,200 km² with mining rights and the SP owned 4.3% of the territory of California. However, during the two-year inspection period by the ICC, the two railway companies were not allowed to operate together. The Southern Pacific was therefore held in trust and the proceeds did not benefit the SFSP. After the end of the review period, the ICC ordered in 1986 that one of the railway companies had to be sold because it determined that the railway company would become monopoly. In fiscal 1986, Santa Fe Southern Pacific Corporation posted a loss of $ 138 million. The request to revise the ICC decision was rejected in 1987. John J. Schmidt then resigned as CEO. The rejection of the merger was also attributed to the stubborn and unrepentant behavior of Schmidt, as he did not make any concessions to competing railway companies as part of the examination and hearing. Far-reaching concessions were only made after the merger was rejected, but this no longer led to a change in the decision. He was succeeded by Robert D. Krebs , President and CEO of Southern Pacific Transportation.
In order to improve the business results, subsidiaries, including three pipeline companies (Black Mesa Pipeline, Gulf Central System [to Koch Industries ], Chaparral System [to Koch Industries]), the leasing company Bankers Leasing and Financial Corp., were established Robert E. McKee construction company and Santa Fe Pacific Timber Company ($ 17 million annual profit; to Sierra Pacific Industries ) were sold. At the end of 1987, after there were already several interested parties ( Kansas City Southern Industries , Norfolk Southern Corporation ), the sale of Southern Pacific to Rio Grande Industries by Philip Anschutz for 1 billion dollars was announced. The company's 1987 annual profit after these sales was 373.5 million.
With the threat of a hostile takeover (including by Union Pacific Corporation ), the company began recapitalizing $ 4.7 billion. Despite the restructuring and the sale of subsidiaries, the company was still highly diversified . Not only was it the seventh largest rail company, it was also the second largest operator of oil pipelines, one of the largest land managers, and it ruled the sixth largest domestic oil and gas company. In 1988 the company's loss was $ 46.5 million.
In 1989 the name was changed to Santa Fe Pacific Corporation. With effect from December 4, 1990, the company split into three companies. The subsidiaries Santa Fe Energy Resources (oil) and Catellus Development Corporation, formerly Santa Fe Pacific Realty Corporation (real estate, land development), became independent companies. Santa Fe Pacific Minerals Corp., Santa Fe Pacific Pipelines and ATSF remained with Santa Fe Pacific Corporation. In 1993 the SFP Coal Corporation was incorporated into the Santa Fe Pacific Minerals. In the same year it was renamed Santa Fe Pacific Gold. On September 30, 1994, Santa Fe Pacific Gold became an independent company. SFP Properties Inc. was incorporated into SFP on April 29, 1994. At the end of 1994 the company, including its subsidiaries, had 15,750 employees.
On September 22, 1995, the Santa Fe Pacific Corporation and Burlington Northern Inc. merged to form the Burlington Northern Santa Fe Corporation ( BNSF Railway )
subsidiary company
In 1987 the company had the following structure:
- Santa Fe Southern Pacific Corporation
- Santa Fe Industries
- Atchison, Topeka and Santa Fe Railway
- Gulf Central Pipeline Company
- Kirby Forest Industries Inc.
- Robert E. McKee Inc.
- Santa Fe Energy Company
- Santa Fe Pacific Pipelines Inc.
- Santa Fe Pipeline Company
- SF Minerals Company
- Southern Pacific Company
- Bankers Leasing and Financial Corporation
- Black Mesa Pipeline Inc.
- Pacific Motor Trucking Company
- Santa Fe Pacific Realty Company
- Southern Pacific Pipe Lines Inc.
- Southern Pacific Transportation Company
- St. Louis Southwestern Railway
- Santa Fe Industries
At the end of 1994 the following subsidiaries existed:
- Atchison, Topeka and Santa Fe Railway
- Santa Fe Pacific Pipelines
Chairman and CEO
- 1983 – April 1987: John J. Schmidt (former Chairman and CEO of Santa Fe Industries)
- April – July 1987: John S. Reed (Chairman until June 1988)
- July 1987–1995: Robert D. Krebs (also Chairman from June 1988)
Company headquarters
The company was based in Chicago in the Railway Exchange Building 228 South Michigan until the end of 1990 . Then the seat in Schaumburg (Illinois) was in the "Two Century Center" 1700 East Golf Road.
literature
- Don L. Hofsommer: The Southern Pacific, 1901–1985 . Texas A&M University Press, ISBN 978-1-60344-127-8 .
Web links
- encyclopedia.com: International Directory of Company Histories: Santa Fe Pacific Corporation
- Annual Report 1994
Individual evidence
- ^ New York Times October 9, 1983: A Sprawling rail empire emerges form the Santa Fe
- ^ New York Times April 21, 1987: Chairman resigns at Santa Fe
- ↑ Chicago Sun-Times October 13, 1987: Santa Fe Southern sells unit ( Memento of the original from October 25, 2016 in the Internet Archive ) Info: The archive link was inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice.
- ↑ Chicago Sun-Times January 16, 1988: Santa Fe Southern sells two pipelines ( Memento of the original from October 25, 2016 in the Internet Archive ) Info: The archive link was inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice.
- ↑ Chicago Tribune April 26, 1989: Shareholders of Santa Fe Southern Pacific Corp. voted to ...
- ↑ Chicago Tribune November 20, 1990: Santa Fe Pacific to split into 3 publicly held firms
- ↑ Annual Report December 31, 1993
- ↑ Annual Report 1994
- ^ R. Whiteside, G. Bricault, S. Carr (Eds.): The International Corporate 1000 . A Directory of Who Runs The World's 1000 Leading Corporations, 1987 Edition. Monitor Publishing Company & Graham & Trotman Limited.
- ↑ Chicago Sun-Times, July 3, 1990: Santa Fe, all the way - to Schaumburg ( Memento of the original from October 25, 2016 in the Internet Archive ) Info: The archive link was inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice.
