Re: D&RGW to US Navy

Paul Grasha Wrote:
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> Why would you need an Authority for Expenditure to
> retire/sell something to someone else?


The short answer is "because everyone understands what it is, and there's no point in creating a different piece of paper."

When I was with BellSouth, we used the same process and paperwork to retire old equipment as we we did to install new equipment. Same principal.

We tend to forget that rates charged by railroads (and energy, and telecommunications) were much more strictly regulated then, and the companies were operated for the benefit of the economy as a whole, not just their shareholders.

Capital expenditures, depreciation, retirements, and operating costs fed into formulas at the state (public utilities commission) and Federal (ICC) levels to determine shipping rates for intrastate and interstate tariffs.

The goal was to keep rates as low and consistent as possible, while still allowing a 'reasonable' return on capital. If a particular branch line lost money, the railroad was still expected to operate it for the public convenience if no other conveyance (i.e. roads, buses, trucks, etc.) was available.

JAC