Re: Per Diem


Gene Green <bierglaeser@...>
 

Wouldn't the per diem be offset by the NYO&W's share of the revenue
for whatever was being shipped?
Gene Green

--- In STMFC@..., Malcolm Laughlin <mlaughlinnyc@...>
wrote:

The Jan., 1953 ORER shows the NYO&W as having 146 cars suitable for
interchange. For an over 400-mile Class One pike, this road must have
had substantial per diem costs. No wonder that they went under in
1957.
Steve Lucas
----------------

The per diem deficit is not necessarily a sign of a weak
railroad. Mopst railroads bought cars to protect their on-line
loading. A well managed primarily terminating road should have a per
diem deficit. If you are a small railroad without ready access to
the capital markets, it might be much cheaper to rent cars than to
own them. Especialy if except for coal you are a terminating
railroad. W eshould remember that in the 50's the railroads that
were buying a lot of cars also were screaming about the per diem rate
being too low to pay for their cost of car ownership. The
terminating roads in the east were probably much better off renting
cars thanif they had had to pay the costs of buying and maintaining
those cars.


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

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