Joe- Yeah, I have been told of several stupid decisions made during the merge.
Curt: Bevan wielded more power than he should have been permitted to wield. Even the CEO, James Symes - during the PRR Days; was intimidated by Bevan. Meanwhile, on the side, Bevan was running what we now call a Hedge Fund, with other private (non railroad), investors. Their strategy, was to pick emerging companies to invest in, then as CFO of the PRR and PC, he would heavily invest railroad money into the same investment, inflating the price. Just like in the Penny Stock scams you see on TV, the initial investors cashed out, and did well, the PRR and PC were left holding the bag.
The PRR, in the '60s lacked any vision what so ever. The nature of the railroad business was changing. Much has been made of the regulatory process holding up progress, but the real reason the PRR was in shabby shape, was the outright refusal of the PRR to invest in infrastructure improvements, almost from the time that Bevan was brought on board. Bevan saw no future in the railroad industry, and had aspirations of leading a Berkshire - Hathaway styled Conglomerate, built using Railroad Capital, and dumping the railroad itself, on to the hands of the highest bidder. Bevan would not even approve AFEs for connections with the NYC, agreed to in the Merger Agreement. Obviously, none of this was illegal, like much in business, but it pushed hard on the envelope. Merging with the NYC, only postponed the inevitable, for another year or so... It was that bad.