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(erielack) Newberry Junction
List - c. 1959 the Erie Railroad's "Susquehanna, Tioga and Delaware
Divisions" had 21 Joint Facility Agreements with foreign railroads. Four
agreements were with the NYC concerning the Newberry Junction operation.
Pending some more research it is my understanding that the principal
Newberry agreement was entered into 8 Nov 1897 about the time the NYC&HR was
wrapping up control of the Fall Brook Railroad. I think that this agreement
replaced previous Erie-FB-Newberry Junction-RDG routings and effectively
bought off the Erie's possible opposition to the deal (though at that time
there was no effective forum to protest these things as the ICC hadn't
extended its dead hands over these matters -- yet).
Anyway the base agreement is effective 8 November 1897 and was
supplemented 28 Nov 1913, 1 Dec 1921, and 8 Apr 1947. The precis of the
agreement is: NYC grants Erie trackage rights between Corning and Newberry
Junction for the handling of through freights destined to or originating at
points north and west of Corning and beyond Newberry Junction. (The Erie is
not permitted to handle freight in either direction originating or destined
to points on Erie lines or beyond, east of Corning.) The Erie pays the NYC
35% of the gross revenues accruing in the joint trackage territory.
Supplemental agreement dated 28 Nov 1913 provides for the NYC to do all
switching and other terminal operations for the Erie at Newberry Junction.
Supplemantal agreement dated 1 Dec 1921 provides [cost and service] basis
for use of Engine House facilities [at Newberry Junction]. Supplementalo
agreement dated 8 Apr 1947 provides a new basis for dividing liability.
Cancellation cklause - none.
It is my understanding that in practice the Erie would make up a
Newberry Junction train at Corning (or Gang Mills after c. 1951) with Erie
power and caboose but that the train wiould be crewed by NYC men who would
submit an Erie timeslip and be paid directly by the Erie Railroad. This
matter of being paid by both railroads resulted in some later negotiations
to apportion NYC and Erie vacation and other liability for the men involved.
I haven't "run the numbers" but the agreement which provided,
effectively, that the NYC would be paid 35% of the Erie's revenue with the
Erie still absorbing the power, car hire, and crew costs of Trackage Rights
traffic sounds rather excessive compared to other Trackage Rights agreements
entered into between railroads at the time. The Erie probably was
negotiating from a relatively weak position and got the best it could. I
believe the key questions is what the "joint trackage territory" is that the
35% of revenue applies to. If the Erie's entire movement (say,
Chicago-Newberry junction) then this is not a good deal. If it is 35% of
Corning - Newberry Junction then it probably was OK. I don't think,
however, that Corning-Newberry Junction revenue was ever isolated (other
than as an NYC division of earnings factor). Anyway, until more research
(I'm on it) into what the real divisions were, the earnings question is
open.
The Erie's internal "competition" for Newberry Junction-RDG traffic
was, I believe, Erie-CNJ-Allentown-RDG which, while additing one more
railroad to the mix, looks to have given the Erie a better yield. I would
opine that the RDG favored Newberry Junctuion because it maximized its
revenue (it being the RDG's longest haul from Philadelphia, for example).
Photographs of any trains, NYC or Erie, along the Corning-Newberry
Junction line, are rare as is the general understanding of the working of
this agreement.
Hope this puts some light to the subject.
M J Connor
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