SP was badly overbuilt. Much was the result of trying to prevent competition. Apparently the thinking was that if we build a track between point A and point B, no competitor will. Many branches never created enough business to justify their cost. Also who needs three main lines up the Central Valley of California? But this didn't prevent a predecessor of Santa Fe from building one.

The planned SP-Santa Fe merger robbed SP of its crown jewels, almost all its real estate. After the merger was prevented by the ICC, SP was condemned to eventual failure.