Santa Fe Pacific Corporation
Encyclopedia
The Santa Fe Pacific Corporation was formed as the Santa Fe Southern Pacific Corporation in 1984 by the merger of Santa Fe Industries
, which owned the Atchison, Topeka and Santa Fe Railway
, with the Southern Pacific Company, which owned the Southern Pacific Railroad
. After the Interstate Commerce Commission
denied their plan to merge their railroads as the Southern Pacific Santa Fe Railroad
the holding company name was shortened and the Southern Pacific Railroad sold.
The holding company retained all the non-rail interests of both predecessors (mainly real estate and natural resources, but Southern Pacific had also formed the telephone company known as Sprint, which was sold shortly before the merger). It was initially headquartered in Chicago
and later in Schaumburg, Illinois
, former Southern Pacific executive Robert Krebs
succeeding Santa Fe head John J. Schmidt as CEO.
Almost immediately after the Southern Pacific was sold, Santa Fe Pacific issued a massive dividend, so large it was considered a return of capital
, and financed by issuing a large amount of debt.
A few years after that, they spun off most of the company's natural resources interests as Santa Fe Gold and spun off all their non-track real estate interests, including railway stations, as Catellus Development.
In September 1995 what was left of the company merged into Burlington Northern and the Santa Fe railroad became part of the Burlington Northern Santa Fe
, with Krebs becoming head of the merged company until his retirement.
The Santa Fe Pacific Corporation was not related to the Santa Fe Pacific Railroad, which operated from 1897 to 1902.
Santa Fe Industries
Santa Fe Industries was the diversified parent company, headquartered in Chicago, of the Atchison, Topeka and Santa Fe Railway. Formed in 1968, its non-railroad operations included construction, real estate, and energy units. In the early 1980s, after longtime head John Shedd Reed had been...
, which owned the Atchison, Topeka and Santa Fe Railway
Atchison, Topeka and Santa Fe Railway
The Atchison, Topeka and Santa Fe Railway , often abbreviated as Santa Fe, was one of the larger railroads in the United States. The company was first chartered in February 1859...
, with the Southern Pacific Company, which owned the Southern Pacific Railroad
Southern Pacific Railroad
The Southern Pacific Transportation Company , earlier Southern Pacific Railroad and Southern Pacific Company, and usually simply called the Southern Pacific or Espee, was an American railroad....
. After the Interstate Commerce Commission
Interstate Commerce Commission
The Interstate Commerce Commission was a regulatory body in the United States created by the Interstate Commerce Act of 1887. The agency's original purpose was to regulate railroads to ensure fair rates, to eliminate rate discrimination, and to regulate other aspects of common carriers, including...
denied their plan to merge their railroads as the Southern Pacific Santa Fe Railroad
Southern Pacific Santa Fe Railroad
In the 1980s, the Atchison, Topeka and Santa Fe Railway and Southern Pacific Transportation Company attempted a merger. It began with the merger of holding companies Santa Fe Industries and Southern Pacific Company on December 23, 1983 to form the Santa Fe Southern Pacific Corporation , which...
the holding company name was shortened and the Southern Pacific Railroad sold.
The holding company retained all the non-rail interests of both predecessors (mainly real estate and natural resources, but Southern Pacific had also formed the telephone company known as Sprint, which was sold shortly before the merger). It was initially headquartered in Chicago
Chicago
Chicago is the largest city in the US state of Illinois. With nearly 2.7 million residents, it is the most populous city in the Midwestern United States and the third most populous in the US, after New York City and Los Angeles...
and later in Schaumburg, Illinois
Schaumburg, Illinois
Schaumburg is a city located in Cook County in northeastern Illinois. A common misspelling of the city name is Schaumberg, a spelling which persists on some modern maps. Schaumburg is located just under northwest of downtown Chicago and approximately northwest of O'Hare International Airport. As...
, former Southern Pacific executive Robert Krebs
Robert Krebs
Robert D. Krebs has headed three major United States railroads in succession, leading the Southern Pacific when it was acquired by Santa Fe Industries, rising to lead the resulting Santa Fe Pacific Corporation, and finally being chosen to head the new Burlington Northern Santa Fe when Santa Fe...
succeeding Santa Fe head John J. Schmidt as CEO.
Almost immediately after the Southern Pacific was sold, Santa Fe Pacific issued a massive dividend, so large it was considered a return of capital
Return of capital
Return of capital refers to payments back to "capital owners" that exceed the growth of a business. It should not be confused with return on capital which measures a 'rate of return'....
, and financed by issuing a large amount of debt.
A few years after that, they spun off most of the company's natural resources interests as Santa Fe Gold and spun off all their non-track real estate interests, including railway stations, as Catellus Development.
In September 1995 what was left of the company merged into Burlington Northern and the Santa Fe railroad became part of the Burlington Northern Santa Fe
BNSF Railway
The BNSF Railway is a wholly owned subsidiary of Berkshire Hathaway Inc., and is headquartered in Fort Worth, Texas. It is one of seven North American Class I railroads and the second largest freight railroad network in North America, second only to the Union Pacific Railroad, its primary...
, with Krebs becoming head of the merged company until his retirement.
The Santa Fe Pacific Corporation was not related to the Santa Fe Pacific Railroad, which operated from 1897 to 1902.