Actually, Phil, the mechanics of all of these mergers is even more nightmarish than you describe.
Up until the sale to Anschutz, the D&RGW was the richest Class I railroad, per track mile, in the USA. Bach then there were also corporate cannibals, like KKR, Blackstone, and others who were on the lookout for companies just like the D&RGW. Anschutz found them first. He convinced the board of Rio Grande Indstries to sell out to him for a seemingly lucrative price. They sold. He went in and raided all of the accounts that the D&RGW had set up over the years for unclaimed freight, OS&D (Over, Short and Damaged), Equipment Renewal, track renewal, etc., and paid Rio Grande Industries WITH THEIR OWN MONEY, for their own business.
When the UP announced the merger with WP and MP was when Anschutz went on the prowl for another connection as up to that time the MP and WP were friendly D&RGW connedtions to the west and south. He found one in the SP, which had been pretty effectively raided by the ATSF after their aborted merger. He merged the now weaker D&RGW and SP into the D&RGW and changed the name to SP. At the same time he acquired another company with SP, the SP Railroad INTernal Communications CO. also known by its acronym "SPRINT".
As things unfolded, he sold SPRINT, started Qwest, took over Mountain Bell and merged the SP into the UP, but not necessarily in that order. As the sole owner of the D&RGW/SP he immediately became the largest single stockholder in UP and got a seat on its Board of Directors. Shortly after that the construction equpment was out digging trenches on either side of the right-of-way laying down fiber optic cable for (who else?) SPRINT! (and, to be fair, Level 3, as well).
I don't know the Anschutz's personally and this is all from personal observation, business journals, and talks from some of those involved. It has ben reported that Anschutz is unloading some of his UP stock, but with as much as he's got he has to be careful not to flood the market. Mr. Anschutz got his initial financing from the Oil and Gas exploration business owned by his family.
But the story has not ended, no sir! With stars in his eyes, Anschutz bought Regal Cinema's, a chain that was in financial trouble and has been busily turning them around. He also started a production company called "Walden Media" which produced, among other things, the C.S. Lewis tale, The Lion, the Witch and the Wardrobe from the Lewis series The Chronicles of Narnia. How does this relate to the Railroad? I'll let you guess on which fiber optic network the digital movies are transmitted to the various Regal Cinema's.
So, Sprint or Level 3 or Qwest or whomever pays the UP for the easement on their Right-of-Way, Walden pays Qwest for the use of their cables, in addition to millions of individual dnd corporate consumers. Regal pays Walden for the transmission of their productions, Walden pays Regal a royalty for the use of their theatres. Movie goers, freight shippers, phone, cable and internet users AND oil consumers all pay for these services of which a percentage ends up in Phillip Anschutz's pocket through the privately held Anschutz corporation.
My dear friend Mr. Johnson, you don't need to work to be a Billionaire like Mr. Anschutz, all ou need is the foresight and luck to be able to think like one.
Me Neither........
Rick
