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[CBQ] RR Ops

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Subject: [CBQ] RR Ops
From: Gerald Edgar <vje68@hotmail.com>
Date: Sat, 5 Mar 2011 12:29:14 -0600
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 As has been pointed out, many basic industries were vertically integrated but 
post-WWII there has been a move to focus on core businesses and outsource 
non-core work.  Beyond the CB&Q & other RR's being largely self-reliant, take 
the steel, farm implement & auto industries as examples.  Ford owned iron ore 
deposits, Great Lakes ore boats, smelters, etc and even used the by-products 
from wood use (back when cars had some wood content - think wheel spokes, etc) 
to let Henry's brother-in-law start Kingsford Charcoal (read the story on the 
bag!)  International Harvester had a steel mill in Chicago & like Ford, U.S. 
Steel, Bethlehem and others, its own railroad.  Company hospitals (pre-Work 
Comp) were not uncommon among larger companies but RR's were bigger than most.  
Bear in mind in 1900 one in six Americans worked for a railroad or a railroad 
supplier.  
 
For the non business majors, more major companies now are horizontally 
integrated (i.e. have a big share of one level of an industry whether it be raw 
materials, assembly or distribution) rather than vertical when they handled the 
goods or service from mine & field to your business or table.   The Burlington 
did try to become somewhat horizontally integrated when it began its bus & 
truck subsidiaries and even attempted FAA approval for an airline (read 
Overton) in the 20's & 30's.  
 
The CB&Q labs in Aurora were perhaps one of the big success stories right up 
there with developing a Vista-Dome but its obvious which development has more 
P.R.!  The lab was even highlighted in some magazine ads and in an Annual 
Report.  Beyond the normal loco fuel, lubricant & water testing (still done to 
some extent by RR's) they got into special coatings for interior & exterior of 
covered hoppers, etc.  The nearby foundry also got them to look into 
metallurgy. CB&Q was among the few (PRR being another) to develop its own 
distinct rail profile (in conjunction with Colorado Fuel & Iron).  Extensive 
work was done with creosoting (Aurora) and experimenting with ties (see post a 
couple yrs ago re: CB&Q testing triangular shaped ties!).   It's fair to say 
though that among RR's, the Q was a leader in innovation for a long time.  This 
is evidenced by its reputation as the 'Road of presidents' - i.e. the number of 
its mgt team that wnet on to become CEO's of other RR's (also touted in some 
CB&Q advertisements).  
 
The Burlington has a lot to offer the fan, researcher or collector beyond the 
obvious.  (which is why we're Q fans, right?)   :-)
 
Gerald 


                                          

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