Re: Operations of Private-owner cars

gary laakso

Normally, a customer will lease cars for a number of years and use them for its needs only. FMC may only have a one time or 2 year contract to supply P&G and the minimum lease term is 10 years. FMC needs to sell its products and it cannot afford to miss a sale because its buyer is not in a position to supply cars. P&G did not go out and lease other tank cars in case a supplier could not otherwise support its sales.

gary laakso
south of Mike Brock

----- Original Message -----
From: Aley, Jeff A
To: STMFC@...;Ry-ops-industrialSIG@...
Sent: 9/7/2008 8:35:59 PM
Subject: [STMFC] Operations of Private-owner cars

Hi Folks,

I have a question about private-owner cars (e.g. leased tank cars) and how they were operated circa 1950.

Let us suppose that Food Machinery & Chemical (FMC) has a factory that produces phosphoric acid.
Let us also suppose that FMC ships the acid to Proctor & Gamble (P&G) for the manufacture of laundry soap.

Would the acid have been shipped in cars leased by FMC, or in cars leased by P&G?

Generically, if a company owned or leased freight cars, would they be used only for outbound shipments, or would they also be used for inbound raw materials?

A secondary example would be the fact that Swift & Co. owned stock cars. How would they have been used? [E.g. Farmer sells his cattle to Swift, so Swift has their car sent to the loading point so that Mr. Farmer can put his stock on the Swift car???]


-Jeff Aley

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