Several things come into play. We've all seen trust plates on various freight cars. In that case the bank owned the car. Many new cars from ACF, Pullman Standard, Greenville, etc were financed. Cars built by home road car shops were more typically fully owned by the railroad. The later cars would be depreciated over a 10 to 20 year depreciation schedule. Just like your personal auto, a 10 year old freight car isn't worth what you paid for it. This factors into the overall capital value of the fleet, and would have been used in the ICC Valuation of rolling stock report. Financed cars would also have been depreciated, but probably at a rate that was the same as the finance period. 

It's the accountants telling operations when portions of the fleet are worthless and are at the end of their lives. Afterwhich any serious repairs cause the car to be white lined. 


From: Tim O'Connor timboconnor@... [STMFC]
Sent: Monday, April 10, 2017 9:58 PM
To: STMFC@...
Reply To: STMFC@...
Subject: Re: [STMFC] Re: ORERs


Ok, Mark, you have me stumped. What does depreciation of cars have to
do with any of this?

Tim O'

 > Mark Landgraf wrote Monday, April 10, 2017 6:48 PM

 > I suspect the accountants may have driven the periodic changes in the
 > remaining cars in the fleet. While most of the cars that were coming off
 > the road were fully depreciated, there was still the need of the accountants
 > to know the periodic value of the whole fleet.


My reply was really directed to Ike's post but I had not seen it,
only your reply...

Anyway I thought of an EXCELLENT reason why ALL railroads were very interested
in the exact number of freight cars they owned - Per Diem! There had better be
an account of every single car's whereabouts at midnight every night and if they
were offline, the account had better be paid!


Join { to automatically receive all group messages.