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(erielack) Meat reefers

Listers:

 

In my younger days (i.e. the 60's), I noticed a number of reefer trains (or
trains with a significant # of reefer cars in their consist) coming through
Wellsville, NY.

 

A number of them were letter with logos from meet companies such as, Hormel,
Swift, John Morrell, etc.

 

There was also a discuss and statistics given as to volume in carloads of
meat on the DL&W and what it ranked in terms carloads by lading during the
1950's.

 

Now this raises, IMHO, an interesting issue and an area of great curiosity
that I've had for some time on this list and other rr related forums.  The
topic I'm talking about, is does anyone have any data on the economics of
handling various types of freight (and for passenger traffic, also) to see
what was, at least in terms of gross operating margins (i.e. revenue less
direct operating expenses, before other costs, such as overhead, general and
admin costs, selling, marketing etc.) was the most profitable (or least loss
causing) not only on a per car basis, but on an overall total $ basis (i.e.
total revenues less total direct operating costs)?  



This info could be on a quarterly basis, annual etc.   I think it would be
interesting if we could get a better understanding of the operating
economics of the RR's we follow on this list, if the info. is available.

 

We seem to be inundated with non-financial operating statistics (e.g.
tonnage, carloads, ton-miles, both in total and by types of lading, rolling
stock utilized, etc.), but little is given to a very important (not that the
non-financial statistics are less important) group of information that the
RR's used to manage their businesses and certainly investors used to make
decisions about investing or selling their positions in these companies.

 

I also realize that the amount and quality of information going back to the
EL and Erie / DL&W days is not as abundant as it is today with businesses
having, what seems at least, almost limitless computing power with massive
amounts of IT resources at their disposal.  It makes me think about
something I read, in either one of the Trains issues, or on a list like this
about someone commenting about during the 60's, the sales forces at many
RR's had no idea what the true costs of intermodal (specifically piggyback)
were and how to price the service accordingly.  They went on to say that in
80's and 90's, with the massive amounts of IT power at hand, they had a much
better handle on what their costs were and could make pricing and operating
decisions that made it more profitable.  They also lamented on how they
during the 60's and 70's, in many cases, had decimated profitable boxcar
business to migrate it to less profitable or even unprofitable TOFC
business.

 

Anyway, my $0.02.  I think if any of this info is available, it would
provide a very interesting insight into how the EL, Erie and DL&W were run
and provide part of the explanation why the two mergers that come about that
resulted in their ultimate demise.

 

Regards,

 

Chris Thurner

 

 

 

Christopher Thurner

 

 



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