It was always difficult to figure out what was in the records in Cleveland. We made our reports, and that was that. I don't know if there were any surprises in there. I believe the reason for the inventory was to decide if any of the equipment should be retired or written off the books for tax purposes. Years 1968 and 1969 were very unusual for EL - it made a profit, and profits mean taxes. Under the accounting and tax laws that were in effect then, a railroad would be able to retire property and realize less than the book or depreciated value, then charge the difference against the taxable profit. There was nothing shady about it; it was simply the way it worked. That was how a railroad stayed in operation while it continued to lose money. It was consuming its own plant and equipment. Gordon Davids >Gordon, > >Interesting story about the inventory trip. In 1969 there would have been a lot of old equipment scatttered around the system. Did you or your colleagues come across any forgotten antiques hidden away that Cleveland was not aware of? > >Philip Albano The Erie Lackawanna Mailing List Sponsored by the ELH&TS http://www.elhts.org ------------------------------
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