The problem really started in 1969 when the Southern Pacific was converted into a holding company and many of the assets, that had been divisions, became corporations owned by the new holding company. It was at that time the railroad became the Southern Pacific Transportation Company. As such the Southern Pacific became attractive for a takeover. Santa Fe grabbed the company, with the aid of Biaggini, and sold many of the assets, including nearly a billion dollars that SP had received for SPRINT. The ICC stated that they could not keep both railroads so the Southern Pacific Transportation Company was sold to Phil. Phil borrowed most of the money to buy the railroad, but he was able to sell much of the railroad's real estate to pay off the debt. He had promised the ICC that he would keep the SP for at least five years, but it was in real trouble in only four years. Phil brought Moyer in as President to salvage to company. Moyer did too good a job, so he was sacked after only a year. The five years were up, so Phil sold the mess to the UP, and Nudge is correct, it was the employees that lost out.