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Strange stuff

June 15, 2005 11:05PM
While some of these stories might seem far fetched, the fact is that taxes and divisions had a significant impact on the economics, and therefore how stuff got handled.
With regard to the post above about the NCO's handling of fuel oil, I would guess that it actually makes a lot of sense when you consider that under the old revenue division rules, an originating or terminating carrier got a disproportionately large piece of the revenue pie. So taking delivery of the shipment at somewhere other than the interchange point made all kinds of economic sense, since it made the NCO part of the revenue routing. Even if the fuel eventually came back as company material to the interchange point. It is quite possible that the through rate to some obscure point on the NCO was little different than to the interchange point, but by being a handling carrier the NCO got a significant part of the revenue rather than zero if they were just the consignee at the interchange point.
That is why carriers like the NWP, PE, VE, SD&AE, etc. survived so long even though they were operationally just another part of the SP. By being "seperate" carriers they increased the piece of the revenue pie accruing to the "greater SP".
Similarly taxes created strange motivations. Perhaps another reader can fill in more details or correct me, but I seem to remember SP always took delivery of equipment outside of California, and used the equipment outside of California long enough to make it legal, in order to avoid California tax.
Strange but true.
JBW
Subject Author Posted

Fuel Oil Facilities

Kevin June 14, 2005 12:25PM

NdeM *PIC*

John West June 14, 2005 01:01PM

conundrum

El Coke June 14, 2005 01:26PM

Question about the photo

Kevin June 14, 2005 01:54PM

Re: Question about the photo

J.B.Bane June 14, 2005 02:35PM

Re: Question about the photo *PIC*

RBrinton June 14, 2005 03:35PM

South Baker... *PIC*

Taylor Rush June 14, 2005 07:01PM

Re: South Baker...

J.B.Bane June 14, 2005 08:32PM

SPNG Laws Oil Tank

Andrew Brandon June 14, 2005 04:57PM

Re: SPNG Laws Oil Tank

Brian Norden June 14, 2005 08:34PM

Re: Fuel Oil Facilities

Ed Stabler June 14, 2005 06:51PM

Re: Fuel Oil Facilities C&S

Mike Trent June 14, 2005 08:57PM

Re: Fuel Oil Facilities

Tom Armstrong June 15, 2005 05:24AM

Re: Fuel Oil Facilities

Ray Cadd June 15, 2005 10:26AM

Re: Fuel Oil Facilities

John Cole June 15, 2005 07:04PM

Re: Fuel Oil Facilities

Brian Norden June 15, 2005 09:44PM

Strange stuff

John West June 15, 2005 11:05PM

Re: Strange stuff

Brian Norden June 17, 2005 11:04PM

Re: Strange stuff

Skonk June 18, 2005 11:49AM

Re: Fuel Oil Facilities

Tom Armstrong June 18, 2005 11:57AM



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