The point is well-made especially when you consider the poor financial performance of the Gulf & Mississippi after it was split off from ICG.
The problem here is that some of the post-EL merger decisions would have had to be made differently for this to work. Compare the ‘fifth system’ discussions of the mid-Twenties, which understood some of the potential of DL&W/NKP as a high-speed bridge connection. Then look at the early EL decision to transfer through freight to the ex-Erie line and eliminate the high-speed line via Garret Mountain completely to build the I-80 cut. Arguably the presence of established high-speed through traffic via the Nickel Plate – within very recent memory with the Berkshires! – would have given a reason to retain and perhaps improve the Cutoff and other parts of the DL&W line specifically for New York traffic, just about the time that pig and then container traffic opportunities were developing.
Anyway you look at it, the US rail map today is a mess. Competition has been eliminated in so many cities and states and left with only one railroad in town like CSX who has the Public Be Damned attitude, “You can ship with us or take your freight and shove it in a rusted potbelly stove of a caboose in some railroad museum”.
Thank goodness for the mother truckers!