Repairing bad order cars is profitable.
If railroad A received a damaged car from railroad B, and railroad A’s carmen discover the damage, then railroad A will bad order the car, repair it, and bill railroad B per the standard FRA interchange manual rates for parts and labor.
So it pay for each railroad to find and repair damaged cars before they forward them, simply because the charge to repair it “in house” is often less than the FRA billing rate they will be charged by the railroad they forward the car to.
As an example…lets say I or someone on my railroad bends a grab iron on a hopper, and we just send the car on without repairing it…the FRA book says to replace a grab iron on a hopper cost $50.00 for the grab iron, and 1.0 hours labor, or 1.25 hours if the rivets have to be drilled out.
So, if we forward this car with out repairing it, and the railroad we send it to catches this bent grab iron, we will be billed somewhere around $150.00 to repair it, plus we would pay the daily storage rate while the car sits still.
On the other hand, if we fix it before we forward the car, the grab iron bought in bulk, (300 or so per box) cost about $10.00, and a good torch man can blast off the old iron and rivets in about 5 minutes, mount and rivet the new iron in and be done with the car in under 30 minutes.
Our in house cost, about $60.00 with labor.
Which one would you want to pay?
So it benefits each railroad to find and repair cars before they are forwarded out, and to find and repair cars they receive from other railroads…pretty much a win, win all the way around.
If you think about it, this keeps railroad B from bending the heck out of a few cars, then forwarding them on and trying to make them someone else’s problem…whoever they forward them to will inspect them on the inbound or receiving track and any damaged cars will be bad ordered…then who ever forwarded the car pays the bill…so if you miss a damag