Per Diem rates were/are set by a formula that factors in the building cost of the car ,its age and of course market demand for the car type. This is done through an AAR committee/bureau.
When I worked in the BN Chicago Regional Office there was still a pamphlet from the 1950s explaining per diem and stressing how important it was to get that foreign car off Q rails prior to midnight in order to save a days per diem charge.
What Ted mentions is overall true. Car owners generally felt that per diems were too low and those holding and using the cars felt they were too high(or at least said that publicly). Keep in mind that per diem only applies to Railroad marked cars,not private cars that have an 'X' as the last reporting mark. Those cars are handled by a totally separate system of mileage compensation and tank cars by an even more complicated system called "equalization".
Even today there are hundreds, no thousands, of box cars wearing a RR reporting mark that are actually owned by a leasing company,bank,financial institution, etc. that are running on what's called a per diem lease. The true car owner gets compensated when the car is off the line of the RR who's mark it is wearing. Today these tend to be older cars running out their final years.
Just think of the effect Precision Railroading should have on per diem, at least in theory !
Leo Phillipp Hello everyone,
I am going to question John's statement about per diem. Someone more knowledgeable should comment and correct
During the '60's and '70's, when working for the railroad, I always understood per diem rates were very low and not worth the cost of the equipment. East coast RR's were notorious for hording western roads equipment, because per diem was cheaper than building cars for themselves. Possibly special duty flat cars had more worthwhile per diem rates?
I would assume the Q had the special duty flats so they could participate in the pool and in long hauls the pool created of over size loads. The loads were probably on a foreign flat car, but were good profitable revenue moves.
Hoping someone with knowledge of per diem and rates will comment.
Agree with John, the CBQ flat was seldom on Q rails.
Ted Schnepf 126 Will Scarlet, Elgin, Ill. 60120
847=697-5353
The heavy duty flat cars of the various railroads were in a sort of nationwide pool ran by the AAR Car Service Bureau. Since they spent most of the time, off home rails and the owning road collected per diem, they were money makers for their owners!
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