Re: Freight car distribution - long way around

Malcolm Laughlin <mlaughlinnyc@...>

Posted by: "" It's all relative Dave. A trickle on the SP would be a flood on the D&RGW.
By the 1960's SP itself strongly preferred the long way around for lumber
-- Oregon to St Louis by way of San Antonio and Pine Bluff...

You have to wonder whether that increased or decreased net income. The percentage increase in line haul cost was much higher than the percentage increase in their divison of revenue, divisions being based on short line mileage. For traffic that had a less than, for example, a five percent margin it could have been a loer, but a winner at 18 % margin. The 50's was when you could lose money on every move but make it up on volume. PRR was famous for that.

Railroad costs were 80 % variable with ton-miles. We know that becasue after years of study the ICC said so.

Malcolm Laughlin, Editor 617-489-4383
New England Rail Shipper Directories
19 Holden Road, Belmont, MA 02478

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