There was another reason that there was a sudden surge in boxcar constuction in the 1970's that's not been mention up to this point. During this timeframe the Interstate Commerce Commission allowed Incentive Per Diem rates to go into effect. This spurred investment in car fleets by many seeking tax shelters and brought abut the existance of such companies as National Railway Utilization Corp. which managed these fleets of new and colorful cars. These higher per diem rates were a boon to many shortline and regional railroads but costly to the Class I's who fought to have them repealed. When that happened many of these car management firms collapsed and the finacial institutions which financed them siezed the cars and sold them off to recoup their investments. Very few of the railroads whose reporting marks appeared on these cars actually owned them. Take for example the Middletown & New Jersey R.R. in Middletown, NY. They intially leased 68 Pickens R.R. 50 ft. XM cars for outbound loading as car supply was a problem. Shortly after the boom started a total of 500 cars bearing M&NJ markings were built. The M&NJ got 10% of the per diem for allowing the use of their reporting marks and had a fairly predictable supply of good cars for Polytherm Plastics for their outbound loads. NRUC and M&NJ both made money until the incentive rates were repealed. Then the cars returned in droves and were stored on the M&NJ's unused main line below Slate Hill, NY. At one point there was a 4 1/2 mile line of baby blue boxcars strung out through the valley. NRUC went bankrupt and the M&NJ got paid to store the cars and eventually make repairs and air brake updates as the cars were sold and shipped out. Many of these cars are still in service today but now were the less colorful schemes of Conrial, CSXT and other Class I's. A few of the shortlines still maintain smaller fleets if they have the outbound traffic to warrant the expense. Al Holleuffer ------------------------------------------------------------ Visit the erielack photopage at http://el-list.railfan.net ------------------------------
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