Bear with me. If you’re not interested in why the railroad did what it did then
delete this post now. It has to do with rates,charges,etc not equipment or
facilities.
Im working on an article for the BRHS Bulletin about what had to have been a
somewhat or possibly totally unique one of kind run when it was established in
the 1880/90’s. It lasted into the late 1950’s/early ‘60’s. The article will
cover highlights of its existence up to the merger. The title of the article
will be “The Moonlight Job”. There are only three to five people left reading
this post besides myself who know what the name means. To them; please dont
expound on what that term means as that will give away the article.
I want to make a statement in the article explaining why the “Q” went to this
likely unprecedented move to protect/serve a certain segment of business. I
want to be sure that my statement will be correct. Is there anyone out there
that can confirm my limited understanding of the following terms ? They have to
do with rates charged by the RRs through the various tariff bureaus and how
those rates were shared among carriers. I want to keep it simple and not get
into the numerous rabbit holes of this quagmire aspect of railroad finances.
Back in the day up to about 35-40 years ago the RRs shared freight charges on a
move. The originating carrier billed the customer for the entire movement over
any number of carriers. They then split the money based on terms like “division
of rates,joint and several,originating and terminating carrier” etc,etc. The
originating carrier sent the other carriers involved in the move their share
of the charges when collected from the shipper or consignee.
Heres the point i want to make “The Q would be happy to go after this
Manufactured product business despite the short Q haul and set up a new,unique
run with limited duties because as originating carrier it would earn a higher
percentage of all revenue on the cars movements and a premium as originating
carrier.” Am I right in my understanding of how the basic system worked ?
If you can point me to a written source I’d be most appreciative. My crude
understanding is formed from 53 years employment in the industry and lots of
reading and conversations.
As background comparison for probably at least the last 25-35 years railroads
each bill their services individually for their portion of the haul. I deal
with this a today in my job.
Here’s the catch in todays system if carrier “A” handles the car from industry
to carrier “B” and the move is,for example, 25 miles and the carriers “minimum
line haul charge” is $2,200 for anything under 350 miles that shipper pays the
originating carrier $2,200.
Then the next carrier charges its “minimum line haul charge” or mileage rate if
over its minimum. Wonder why there isn’t more short haul interchange business ?
And yes shippers and carriers can enter into contracts that soften some of this
pain. But you need to be a large shipper.
If anyone can direct me to a source to confirm my understanding I would
appreciate it.
Thanks,
Leo Phillipp
Ps-Pete,Wayne ?
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