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Re: (erielack) new cars delivered to Erie

Brian -

First, if the car owner served the car builder, new cars were placed in service and on the books at the builder's plant, unless there was a sales tax issue.  New York charged a sales tax on those transactions, but I don't know of any freight car builders in New York State at the time.  The D&H took delivery of locomotives in Pennsylvania for that reason.

Second, if another railroad was receiving the cars, it depends on whether or not they had an agreement with the serving railroad to put the cars in service at the plant, and let the serving railroad take them for loading.  In that case, they generally went into service at the plant and the serving railroad started paying per diem on them when delivered.  I don't know of a case where the owning railroad paid the freight to ship them somewhere else on the serving railroad and then put them in service.

If the owning road didn't have an agreement with the serving road, then the owner paid freight to ship the cars to themselves, usually a mileage rate to the nearest interchange, or to another closer railroad that had agreed to take them into service.

Sort of on topic - When the D&H was purchased by Dereco, the "personal" property (not "real" property - land, track and structures) located in New York State was taxable for the sales tax on its depreciated value.  The D&H moved as many of its cars, locomotives and work equipment as it could into Pennsylvania on June 30, 1968 to avoid paying sales tax to NY.  For a few days the D&H looked like the EL in New York, with nearly all the trains powered by EL locomotives.

Gordon Davids

From: "Brian Carlson"<prrk41361_@_yahoo.com>
Subject: (erielack) new cars delivered to Erie

The discussion of new cars over the EL prompted me to wonder what the
procedure was for deliveries of new cars. When delivered to the Erie (or EL,
or dL&W) when would the cars be placed in service. Could they go into
service as soon as they were picked up or would they be delivered to the
nearest class yard first, Hornell, Meadville, Marion, etc?



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