Rip 261

As no-one else has mentioned it yet, a victimof greed:

News Release
Contact: Steve Sandberg
Friends of the 261 to return Milwaukee Road 261 to National Railroad Museum

MINNEAPOLIS, Minnesota, Nov. 20, 2009:

The “Friends of the 261” was unable to accept the final offer for an extension of its lease agreement for Milwaukee Road 261 from the National Railroad Museum of Green Bay, Wis. As a result, the famous steam locomotive, which was built in 1944 and used by the “Friends” in excursion service from 1993 to 2008, will eventually return to the Museum as a display.

The National Railroad Museum, which owns the 261, and the “Friends” have been attempting to negotiate a new lease for the past several years. The Friends asked for at least a 15-year lease agreement while the NRM’s final offer was for a ten-year term. Friends of the 261 and North Star Rail Chief Operating Officer Steve Sandberg said the decision to return 261 was based on simple economics. “The Museum’s latest offer would only extend us a ten-year lease, but under current Federal regulations boiler overhauls have a 15-year term. The cost for the 10-year lease was $20,000 per year with a four percent increase annually compounding. After incurring the cost of rebuilding the locomotive, the Friends would be paying in addition an average of $25,000 per year for the 10-year period. After ten years we would have to give the locomotive back with 33 percent of its service life still left. It’s hard to amortize the cost of a 15-year boiler overhaul in a ten-year time frame. We just could not economically justify spending $400,000 to $600,000 on an overhaul, plus paying a substantially increased lease payment, for only a ten-year lease term.”

For several years the “Friends” has been cross subsidizing the cost of 261 operations by leasing or chartering passenger cars from a fleet of cars it has built up over the years. This has enabled the not for profit Friends of 261 to keep the 261 in operation – the only privately sponsored mainline steam organization to do so, year after year.

Sandberg said it has been a privilege to restore and operate 261 over the past 15 years. “It has been one of the joys of my life to operate Milwaukee Road 261, especially since my grandfather used to run the locomotive on the Milwaukee Road when it was in regular service. I want to thank the National Railroad Museum for entrusting our organization with this historic engine for the last decade and a half.”

Even with the conclusion of 261 operations, the Friends of the 261 will remain active. The group will continue to charter and lease its extensive fleet of passenger cars for Amtrak and excursion trips. In 2010, the group is working to bring another main line steam locomotive to Minneapolis for several excursions, and, in the long run, may acquire another steam locomotive to restore to operation.

http://www.railpictures.net/viewphoto.php?id=298239&nseq=9

 

765 is indeed in that catagory, but,with the exception of this year has not operated on the mainline or a public excursion for that matter for well over ten years as the corporate US roads and insurance brokers have been less simpathetic to steam operation

 

765 has been operational again, following that very thougah overhaul, since 2005. Sinde then she hasbeen in steam Didcot style in the society yards only, apart frum a test run in 2006 and the excursions run this year.

http://www.765.org/