What do you think the PRR should have done instead?
A. Let New York Central slide so far into bankruptcy that the PRR would have to buy them
B. Extend electrification to Chicago
C. Stay as they were
D. other
A) Would have been useless. PRR would have gone bankrupt well before the Central.
B) Too costly.
C) Would have bankrupted themselves. Just more slowly.
My choice is D)
What they should have done is to stop their obsession with competition with the other railroads in the Alphabet route and focused on competition with trucks. Of course, really, it was too late. The Alphabet Route was taking too much away from them for the PRR to stay solvent anyway. Merging with the NYC was a horrible idea, as the mismanagement of the assets, and the complete opposite business practices doomed it from the start.
The NYC probably would have survived, but just barely.
The PRR, unfortunately for them, probably woudn't have. They had too many assets that were draining money, such as the LVRR. They should have cut free the LVRR, and allowed the CNJ, the Reading and the LVRR to merge, as was proposed in the early 70s. Of course, due to the lack of the Penn Central, the Reading would have still been solvent due to interchange traffic that wouldn't have been taken away.
But, of course, cutting these assets would have weakened the PRR, and strengthened the Alphabet Route, and probably wouldn't have helped them anyway.
Really though, the key is deregulation of the railroads. If they could have just held out a bit longer, they probably could have survived. The regulation was even worse for big railroads like the PRR. Smaller lines like the Reading were affected, but not as much. Especially with things like the Bee Line Service.
Oh and Cascade. Yeah, that was two people that wanted that in Congress. Not the entire US government. And it never happened. Hell, the railroads, after dieselization, were actually pretty big purchasers of oil products. Also, oil trains were more cost effective than oil trucks for longer distances. While other commodities went to the trucks, oil stayed relatively on the rails.
Also, in the 1970s there was the oil embargo. During this time, the US government was paying big subsidies to the energy departments to switch to coal in the powerplants in order to alleviate the crisis. Hell, the L&N and other railroads were actually short on locomotives. Of course, this was mainly Bituminous coal, so it didn't help anthracite, but that doesn't matter in the case of the PRR which was a minority player in the anthracite market.
TL;DR Cascade doesn't know what he is talking about. The US government, if hungry for oil, wouldn't have pushed for companies to switch to coal.