Re: [CBQ] Rollers

["William Hirt" <whirt@fastmail.com>]

Charlie,

The study has numbers for cars handled at Chicago for Racine Avenue, the Chicago Produce Terminal, Wood Street (C&NW) and set at an industrial siding.

There is a table of out of pocket costs and management costs for the cars included in the study.

The study says:

"It will be noted that CB&Q expenses were greater than revenues on those cars going to all locations on an out-of-pocket cost bsis, which this was true only at the Chicago Produce Terminal when management costs were applied. The revenue deficit was less at Wood Street than at Racine Avenue and the Chicago Produce Terminal on an out-of-pocket costs basis while revenue was greater at Racine Avenue than Wood Street and the Chicago Produce Terminal on a management cost basis."

The study goes on state that had been consideration about closing Racine Avenue due to high demurrage costs of BREX cars set there. However the study concluded that closing Racine Avenue would just add more costs by shifting to other terminals and cost the CB&Q more.

In the study summary, it states:

"Compensatory nature of traffic has often been questioned. Studies of Trans-continental perishables handled by the Burlington in June 1966 discloses that revenues are generally insufficient to recover out-of-pocket costs. However, revenues generally exceeded management costs by varying amounts, depending on the commodity, gateway and type of equipment."

"The least desirable traffic terminates in Chicago where heavy terminal expense almost depletes revenues. About 15 per cent of the cars in our study were consigned to Chicago."

That is why the GN forwarding pattern of produce traffic from 1968 is interesting. The Q obviously got word to the parents after this study that Chicago terminating produce traffic was a loser (the GN gave such traffic to the C&NW per the wheel reports) and only forward the Q through produce cars to be interchanged at Chicago to eastern lines.

Bill Hirt

On 4/14/2021 2:45 PM, Charlie Vlk wrote:

All-

Those on the list that have better information can comment on why it was so unprofitable for the CB&Q to deliver cars to the C&NW Wood Street “Potato Yard”….

Seems to me the problem might be the double transfer from Clyde…..to Western Avenue, then to a transfer from there (using the SCAL?) to Wood Street.  Would shipper routing prohibited the Q from handing off the car to the IHB Congress Park/C&NW Proviso/Wood Street or using a C&NW transfer run from Clyde?

Charlie Vlk

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