MILW 261 goes the way of the N&W 1218 and 611.

Trains Magazine General Discussion
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Im not sure if it is common knowledge yet,but The Friends of the MILW 261 will return the MILW 261 to the National Railroad Museum in an inoperable state.

MINNEAPOLIS, Minnesota, Nov. 20, 2009:

The “Friends of the 261” was unable to accept the final offer for an extension
of its lease agreement for Milwaukee Road 261 from the National Railroad Museum
of Green Bay, Wis. As a result, the famous steam locomotive, which was built in
1944 and used by the “Friends” in excursion service from 1993 to 2008, will
eventually return to the Museum as a display.

The National Railroad Museum, which owns the 261, and the “Friends” have been
attempting to negotiate a new lease for the past several years. The Friends
asked for at least a 15-year lease agreement while the NRM’s final offer was for
a ten-year term. Friends of the 261 and North Star Rail Chief Operating Officer
Steve Sandberg said the decision to return 261 was based on simple economics.
“The Museum’s latest offer would only extend us a ten-year lease, but under
current Federal regulations boiler overhauls have a 15-year term. The cost for
the 10-year lease was $20,000 per year with a four percent increase annually
compounding. After incurring the cost of rebuilding the locomotive, the Friends
would be paying in addition an average of $25,000 per year for the 10-year
period. After ten years we would have to give the locomotive back with 33
percent of its service life still left. It’s hard to amortize the cost of a
15-year boiler overhaul in a ten-year time frame. We just could not economically
justify spending $400,000 to $600,000 on an overhaul, plus paying a
substantially increased lease payment, for only a ten-year lease term.”

For several years the “Friends” has been cross subsidizing the cost of 261
operations by leasing or chartering passenger cars from a fleet of cars it has
built up over the years. This has

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This seems from the outside to be a tremendous shame. If there is a group that is willing to pay a museum actual cash money on a regular schedule AND maintain a steam engine in operating condition, and that group has the credibility to convince Class 1 railroads to allow them to operate the engine on mainline tracks, I don’t understand why the museum would object.

I don’t know all the details, but I find it almost impossible to believe that the NRM will find someone willing to step up to the plate who is able to work with Class 1’s the way the Friends of the 261 have.

I saw my first operating mainline steam this summer, when 4449 came through my area, and it was captivating. I have never seen interest in a railroad close to what was generated by the 4449 operating on the Staples Sub as it traveled between the Twin Cities and Fargo. I hate to see any of these machines go out of service for any reason. I also can’t believe this move is in the long term best interest of the NRM.

Best wishes to the Friends in finding another locomotive to operate. And thanks for all they do.

Jim

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A sad time for all. It seems beyond expressing my chagrin, but then I go back to the days when all trains were pulled by steam engines and diesels were thought of as just a fad. I should just think of this as another nail in the old coffin.

Good luck to the friends and all other groups who have worked hard and spent much to keep the old locomotives operating.