Billboard Reefers


Russ Strodtz <sheridan@...>
 

Tim,

It is interesting to note that much later some GTW cars started
showing up with the logo of a processed foods company about a
foot square stuck on them. I will acknowledge this could have been
just a loading dock Foreman with a good supply of stickers but I
doubt there was any effort made to cover them up or remove them.

Russ Strodtz

----- Original Message -----
From: Tim O'Connor
To: STMFC@...
Sent: Sunday, 25 March, 2007 20:26
Subject: Re: [STMFC] Billboard Reefers


Guy Wilber wrote

>"Advertisements of any shipper, consignee or product,
prohibited on all cars
> except special cars of Mechanical Designation "L" and tank
cars of Mechanical
> Designation "T". In Interchange.
>
>Note. -- The name of the "home point" of the car owner or
lessee, a trade
>mark or symbol, or the name of the owner or lessee, or any
part thereof, will
>not be considered advertising."


Thanks Guy, although excepting "trade marks" would seemingly
cover a lot of
what is usually considering to be advertising. Like Tony's
example of the
Chateau Martin cars (which were not T or L) bearing 40 foot
slogans, e.g.

"For Good-ness Sake ... drink Chateau Martin Wines"

If that's just a declaration of ownership or a simple trade
mark, then I
guess I don't understand the meaning of the word "advertising".
I wonder if
you have any evidence of further relaxation of the 'ban' in the
1950's or
afterwards?

Tim O'Connor


Anthony Thompson <thompson@...>
 

Richard Hendrickson wrote:
Ah, but Tim, the Chateau Martin cars WERE T class cars, specifically
class TG, "tank car having one or more glass lined containers."
The post-war ORER I have says they were all XT and BMT cars. CLass TG was for conventional tank cars which happened to have glass linings, not for box car bodies with internal tanks.

Tony Thompson Editor, Signature Press, Berkeley, CA
2906 Forest Ave., Berkeley, CA 94705 www.signaturepress.com
(510) 540-6538; fax, (510) 540-1937; e-mail, thompson@...
Publishers of books on railroad history


Richard Hendrickson
 

On Mar 25, 2007, at 6:26 PM, Tim O'Connor wrote:

....excepting "trade marks" would seemingly cover a lot of
what is usually considering to be advertising. Like Tony's example of
the
Chateau Martin cars (which were not T or L) bearing 40 foot slogans,
e.g.

"For Good-ness Sake ... drink Chateau Martin Wines"
Ah, but Tim, the Chateau Martin cars WERE T class cars, specifically
class TG, "tank car having one or more glass lined containers."
Remember, these were former milk cars, i.e., express reefers with tanks
for bulk milk shipments, which Chateau Martin purchased second hand for
shipments of bulk wine.

Richard Hendrickson


Anthony Thompson <thompson@...>
 

Guy Wilber's list of exception-classes for advertising (mechanical designations T and L) is interesting because it does NOT include the cars we've been discussing: the R classes. I think we need to know more about this . . . <g>.

Tony Thompson Editor, Signature Press, Berkeley, CA
2906 Forest Ave., Berkeley, CA 94705 www.signaturepress.com
(510) 540-6538; fax, (510) 540-1937; e-mail, thompson@...
Publishers of books on railroad history


Tim O'Connor
 

Guy Wilber wrote

"Advertisements of any shipper, consignee or product, prohibited on all cars
except special cars of Mechanical Designation "L" and tank cars of Mechanical
Designation "T". In Interchange.

Note. -- The name of the "home point" of the car owner or lessee, a trade
mark or symbol, or the name of the owner or lessee, or any part thereof, will
not be considered advertising."

Thanks Guy, although excepting "trade marks" would seemingly cover a lot of
what is usually considering to be advertising. Like Tony's example of the
Chateau Martin cars (which were not T or L) bearing 40 foot slogans, e.g.

"For Good-ness Sake ... drink Chateau Martin Wines"

If that's just a declaration of ownership or a simple trade mark, then I
guess I don't understand the meaning of the word "advertising". I wonder if
you have any evidence of further relaxation of the 'ban' in the 1950's or
afterwards?

Tim O'Connor


Westerfield <westerfield@...>
 

Tony - You're right - a slip of the keystroke. - Al Westerfield

----- Original Message -----
From: Anthony Thompson
To: STMFC@...
Sent: Sunday, March 25, 2007 3:07 PM
Subject: Re: [STMFC] Billboard Reefers


Al Westerfield wrote:
> The worst problem in my opinion was that the per diem that the
> railroads had pay to haul long distance shipments in the leased cars
> was so great that the lessees' lease cost was more than covered by the
> per diem. In essence they were leasing the cars for free. Only a
> fool wouldn't take advantage of such a situation. As a result there
> were twice as many reefers as needed in 1930 and the ones sitting idle
> belonged to the railroads. This is also covered in the 1934 ICC
> decision.

Correct, Al, except they were NOT per diem payments, they were
mileage payments. Some lease contracts provided for subtracting the
mileage payments on a car (for that month) from the lease
charge--permitting a literal profit just by moving cars more
extensively. It appears from the ICC testimony that only a few shippers
were aggressively taking advantage of this, but by removing the
legality of such contracts, the ICC intended to avoid the rest of the
shippers (in Al's words) deciding not to be fools.

Tony Thompson Editor, Signature Press, Berkeley, CA
2906 Forest Ave., Berkeley, CA 94705 www.signaturepress.com
(510) 540-6538; fax, (510) 540-1937; e-mail, thompson@...
Publishers of books on railroad history


Guy Wilber
 

In a message dated 3/25/2007 10:36:33 AM Central Daylight Time,
timboconnor@... writes:

So there you have it. I suppose one should preface one's question with
"What is the answer today?" since it seems likely to change tomorrow.
Tim,

The AAR eventually moved their language within Rule 3 to Section (a)
Paragraph (7). I will have to dig a little deeper to find that exact date, but as
of 1946 it read as follows. I think you will find the exceptions (within)
interesting in reference to your mention of Boraxo covered hoppers, etc., in
your post from Saturday.

"Advertisements of any shipper, consignee or product, prohibited on all cars
except special cars of Mechanical Designation "L" and tank cars of
Mechanical Designation "T". In Interchange.

Note. -- The name of the "home point" of the car owner or lessee, a trade
mark or symbol, or the name of the owner or lessee, or any part thereof, will
not be considered advertising."

Kind Regards,

Guy Wilber
West Bend, WI





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Anthony Thompson <thompson@...>
 

Al Westerfield wrote:
The worst problem in my opinion was that the per diem that the railroads had pay to haul long distance shipments in the leased cars was so great that the lessees' lease cost was more than covered by the per diem. In essence they were leasing the cars for free. Only a fool wouldn't take advantage of such a situation. As a result there were twice as many reefers as needed in 1930 and the ones sitting idle belonged to the railroads. This is also covered in the 1934 ICC decision.
Correct, Al, except they were NOT per diem payments, they were mileage payments. Some lease contracts provided for subtracting the mileage payments on a car (for that month) from the lease charge--permitting a literal profit just by moving cars more extensively. It appears from the ICC testimony that only a few shippers were aggressively taking advantage of this, but by removing the legality of such contracts, the ICC intended to avoid the rest of the shippers (in Al's words) deciding not to be fools.

Tony Thompson Editor, Signature Press, Berkeley, CA
2906 Forest Ave., Berkeley, CA 94705 www.signaturepress.com
(510) 540-6538; fax, (510) 540-1937; e-mail, thompson@...
Publishers of books on railroad history


Westerfield <westerfield@...>
 

The worst problem in my opinion was that the per diem that the railroads had pay to haul long distance shipments in the leased cars was so great that the lessees' lease cost was more than covered by the per diem. In essence they were leasing the cars for free. Only a fool wouldn't take advantage of such a situation. As a result there were twice as many reefers as needed in 1930 and the ones sitting idle belonged to the railroads. This is also covered in the 1934 ICC decision. - Al Westerfield

----- Original Message -----
From: Tim O'Connor
To: STMFC@...
Sent: Sunday, March 25, 2007 1:23 PM
Subject: Re: [STMFC] Billboard Reefers



I agree with you, Tony. :-) I always understood the intention of
the 'ban' was to curb such abuses, whereas advertisement of one's
own products on one's own freight cars (covered hoppers, reefers,
box cars) did not incur so much regulatory wrath. Which may have
something to do with why it's not hard to find photos of freight
cars carrying product advertising in the 1950's and especially
from the 1960's onwards.

If you think about it, once the railroads began to put passenger
train advertising on their freight cars, you had railroads forced
to carry freight cars that advertised competitors' services! Here
the 'injured party' would be a railroad and not a shipper, so maybe
the ICC didn't consider it to be unfair. Or maybe it was just such
a longstanding practice that no one challenged it.

Tim O'Connor

>Kurt Laughlin wrote:
>> Maybe it's the same thing stated another way, but my impression was
>> that it was the small shippers who complained about using cars with
>> their competitor's logos all over them, and argued to the ICC that the
>> free advertising provided by the logos was tantamount to an illegal
>> rebate for the large shippers.
>
> As I stated back in 2002, this aspect was a very small part of
>the abuses which the ICC stepped in to correct. The free advertising
>was indeed ruled a rebate, but this is summarized briefly in the
>ruling, while there are pages and pages on the remainder of the docket
>issues. (The biggest had to do with mileage-charge abuses by roundabout
>or unnecessary car movements, and with lease contracts in which
>shippers had an incentive to create extra mileage.) It is my impression
>from reading some of the ICC testimony that the assignment of one
>lessee's cars to another shipper was unusual, but the free advertising,
>not offered to smaller shippers, was a really big complaint.
>
>Tony Thompson


Tim O'Connor
 

I agree with you, Tony. :-) I always understood the intention of
the 'ban' was to curb such abuses, whereas advertisement of one's
own products on one's own freight cars (covered hoppers, reefers,
box cars) did not incur so much regulatory wrath. Which may have
something to do with why it's not hard to find photos of freight
cars carrying product advertising in the 1950's and especially
from the 1960's onwards.

If you think about it, once the railroads began to put passenger
train advertising on their freight cars, you had railroads forced
to carry freight cars that advertised competitors' services! Here
the 'injured party' would be a railroad and not a shipper, so maybe
the ICC didn't consider it to be unfair. Or maybe it was just such
a longstanding practice that no one challenged it.

Tim O'Connor

Kurt Laughlin wrote:
Maybe it's the same thing stated another way, but my impression was
that it was the small shippers who complained about using cars with
their competitor's logos all over them, and argued to the ICC that the
free advertising provided by the logos was tantamount to an illegal
rebate for the large shippers.
As I stated back in 2002, this aspect was a very small part of
the abuses which the ICC stepped in to correct. The free advertising
was indeed ruled a rebate, but this is summarized briefly in the
ruling, while there are pages and pages on the remainder of the docket
issues. (The biggest had to do with mileage-charge abuses by roundabout
or unnecessary car movements, and with lease contracts in which
shippers had an incentive to create extra mileage.) It is my impression
from reading some of the ICC testimony that the assignment of one
lessee's cars to another shipper was unusual, but the free advertising,
not offered to smaller shippers, was a really big complaint.

Tony Thompson


Anthony Thompson <thompson@...>
 

Kurt Laughlin wrote:
Maybe it's the same thing stated another way, but my impression was that it was the small shippers who complained about using cars with their competitor's logos all over them, and argued to the ICC that the free advertising provided by the logos was tantamount to an illegal rebate for the large shippers.
As I stated back in 2002, this aspect was a very small part of the abuses which the ICC stepped in to correct. The free advertising was indeed ruled a rebate, but this is summarized briefly in the ruling, while there are pages and pages on the remainder of the docket issues. (The biggest had to do with mileage-charge abuses by roundabout or unnecessary car movements, and with lease contracts in which shippers had an incentive to create extra mileage.) It is my impression from reading some of the ICC testimony that the assignment of one lessee's cars to another shipper was unusual, but the free advertising, not offered to smaller shippers, was a really big complaint.

Tony Thompson Editor, Signature Press, Berkeley, CA
2906 Forest Ave., Berkeley, CA 94705 www.signaturepress.com
(510) 540-6538; fax, (510) 540-1937; e-mail, thompson@...
Publishers of books on railroad history


Kurt Laughlin <fleeta@...>
 

----- Original Message -----
From: Richard Hendrickson

What prompted the ICC ruling was the extensive practice by car leasing
companies like North American, Northwestern Refrigerator Line, Union
Refrigerator Transit, etc. of leasing reefers to small shippers and
plastering the shippers' advertising all over them, which then in
effect rendered the cars unacceptable for loading by any other shipper.
The railroads complained that this amounted to providing shippers with
a sizable benefit for which they were not charged, as well as making
the cars unavailable when the railroads had traffic (back-hauls, for
example) that otherwise could have been loaded in them.
----- Original Message -----

Maybe it's the same thing stated another way, but my impression was that it was the small shippers who complained about using cars with their competitor's logos all over them, and argued to the ICC that the free advertising provided by the logos was tantamount to an illegal rebate for the large shippers.

KL


Anthony Thompson <thompson@...>
 

Tim O'Connor wrote:
So there you have it. I suppose one should preface one's question with "What is the answer today?" since it seems likely to change tomorrow.
Read Richard Hendrickson's clear summary. My 2002 comments about 1946 and thereafter were based on a misunderstanding of the rule. It is clear that "advertisement" was applied in a very specific sense.

Tony Thompson Editor, Signature Press, Berkeley, CA
2906 Forest Ave., Berkeley, CA 94705 www.signaturepress.com
(510) 540-6538; fax, (510) 540-1937; e-mail, thompson@...
Publishers of books on railroad history


Richard Hendrickson
 

On Mar 24, 2007, at 9:49 PM, Jim Betz wrote:

Your post to Malcolm on this topic has me confused. I thought that the
ban on 'advertising on freight cars' was only related to those
markings
that were for products other than those products 'made' by the company
who owned the car. Ie. a reefer that was owned by Rath could have any
thing Rath wanted on the side ... but if the car was owned by some
other
company then it could not. Isn't that actually what the ruling was?
However - most of the billboard reefers were affected by the change
and - per Al Westerfield (in a post here on this list?) the majority
of
the billboard reefers were gone in '37 and they 'all' were gone in
'38.

I do not have the date of the actual court ruling. Any one know it?
How about the court case name and venue?
Jim, as Tony Thompson has already posted, the ruling was made by the
Interstate Commerce Commission. The ICC ruling took effect early in
1934, after which billboard advertising could not be applied to new or
repainted cars. Such advertising had to be removed from cars already
in service by 1938, so Al Westerfield is correct that most billboard
cars were gone ca. 1937 and all were gone by 1938.

What prompted the ICC ruling was the extensive practice by car leasing
companies like North American, Northwestern Refrigerator Line, Union
Refrigerator Transit, etc. of leasing reefers to small shippers and
plastering the shippers' advertising all over them, which then in
effect rendered the cars unacceptable for loading by any other shipper.
The railroads complained that this amounted to providing shippers with
a sizable benefit for which they were not charged, as well as making
the cars unavailable when the railroads had traffic (back-hauls, for
example) that otherwise could have been loaded in them.

From the outset the ICC ruling permitted cars owned by, or on long-term
lease to, a shipper to have the shipper's logo on them IF they were in
assigned service and were never used to carry products made by anyone
else. There were a few examples of this in the late '30s and '40s, and
more examples (especially on RSMs used by meat packers) in the 1950s.
Specific products could not be advertised, however, unless the cars
were used exclusively for those products, or for the raw materials used
to make the products, a situation that was relatively rare though there
were a few examples of it in the 1950s.

None of this is mysterious except to those who seem bent on being
contentious without examining the documentation.

Richard Hendrickson


Tim O'Connor
 

Jim, here is what Tony Thompson posted on 6/6/2002 --

Guy Wilber wrote
In 1936, the AAR's Arbitration Committee added a new paragraph (6) to
section (r) of Interchange Rule No. 3 to read as follows: Refrigerator
cars bearing advertisements of any shipper, consignee or product will
not be accepted, effective January 1, 1937. In Interchange.
Thanks for adding this item, Guy. I was not aware of the specifics of
the AAR regulation. The ICC case on which this was based, Docket No. 3887,
was decided on July 2, 1934, and was concerned with many abuses by shippers
using leased refrigerator cars, of which advertising furnished free by
lessors was a very minor part.
The AAR rule was certainly not in force as early as the spring of 1946;
there is an Al Rose color photo of the spectacular Chateau Martin purple
wine car scheme, which is "ultimate billboard" in size, dated at that time.
So there you have it. I suppose one should preface one's question with
"What is the answer today?" since it seems likely to change tomorrow.

Tim O'Connor


----------------------------------------------------------------------
Jim Betz wrote:
I do not have the date of the actual court ruling. Any one know it?
How about the court case name and venue?
Jim (and Tim), it was an ICC ruling. Not AAR and not a court.
Richard and I have both retrieved all the details from ICC documents,
and he has laid it out clearly in the text of the billboard reefer book
he wrote with Ed Kaminski. It's in our pipeline to publish.

Tony Thompson


Tony Thompson
 

Jim Betz wrote:
I do not have the date of the actual court ruling. Any one know it?
How about the court case name and venue?
Jim (and Tim), it was an ICC ruling. Not AAR and not a court. Richard and I have both retrieved all the details from ICC documents, and he has laid it out clearly in the text of the billboard reefer book he wrote with Ed Kaminski. It's in our pipeline to publish.

Tony Thompson Editor, Signature Press, Berkeley, CA
2906 Forest Ave., Berkeley, CA 94705 www.signaturepress.com
(510) 540-6538; fax, (510) 540-1937; e-mail, thompson@...
Publishers of books on railroad history


Jim Betz
 

Richard,

Your post to Malcolm on this topic has me confused. I thought that the
ban on 'advertising on freight cars' was only related to those markings
that were for products other than those products 'made' by the company
who owned the car. Ie. a reefer that was owned by Rath could have any
thing Rath wanted on the side ... but if the car was owned by some other
company then it could not. Isn't that actually what the ruling was?
However - most of the billboard reefers were affected by the change
and - per Al Westerfield (in a post here on this list?) the majority of
the billboard reefers were gone in '37 and they 'all' were gone in '38.

I do not have the date of the actual court ruling. Any one know it?
How about the court case name and venue?
- Jim in San Jose