Wonder if this is really true or not…
Figures Lie and Liars figure.
Many of the locations pictured are from Larry’s Truck & Electric in the Lordstown-Youngstown area of Ohio.
Companies manage their locomotive fleet based upon their REAL and Expected business forecast, PSR calculations pumped up the ‘surplus’ power equation.
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At about 18:45 in that video, the track in the foreground makes a wicked turn! [that I don’t believe any actual locomotive could negotiate]
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This undercuts the railroads’ claims of being environmentally friendly.
One thing not mentioned in that video (IIRC) is whether the trust on the locomotive is still active. If it is, the railroad can’t get rid of it.
As I recall, going back in history, Western Maryland held on to the Challenger steam engines for several years after they dieselized their operation because the equipment trusts that allowed the purchase of the Challengers in the first place still had time to run and monies to be paid.
Much of the reputation of the PRR T1s as incurable dogs was likely related to desire to get out of their equipment-trust obligation as early as possible.
Harry Rentschler said that Ecolaire stayed in the business of supplying Baldwin locomotive parts into the 1970s in large part because they were waiting out equipment-trust obligations.
I believe you can but you’d have to pay it off. Just like an outstanding car loan or home mortgage.
If you can’t sell it for the outstanding amount it becomes an immediate and immense cash outflow. Cheaper to just keep paying the payments instead.
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Railroad rolling stock under an equipment trust can only be sold or scrapped before the expiration date of the trust if the railroad pay the remaining balance of the trust to the trustee. The trustee holds the legal title. As a rule, the railroad does not incur a penalty if it pays off the trust before the scheduled termination date.
My first job out of college was in the Corporate Trust Department of a Wall Street Bank. We had a significant number of Southern Pacific Railroad Equipment Trusts among others. I remember being introduced to the Treasurer of the Southern Pacific when he was visiting with us. I was thrilled.
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