locomotives that are scraped?

depends

What do you mean?????

 

They better be owned by SOMEONE, or they would be "stolen", right?

Hmmm.

 

Pielet Bros. acting as a chop-shop for black market F7 parts?  Did any of these parts wind up on Battle Train?

 

Seriously, I would imagine the scrapper holds the title or does the dirty deed under contract for the owner.

 

Rusty

I think he is referring to how many locos display trust plates of the title holder. I worked for a bank for 30 years and I don't fully understand all the reasons around this practice.

But by the time a unit gets to a scrapper it very well may no longer be held by a trust. At any rate someone with the authority has given the scrap order.

 

On a side note while we were on the 765 trip we saw a number of CN F units at the NS Altoona loco shops.....parts for the Exec units I figure!

 

I heard something more along the lines of NS wanting a whole backup set of exec power.

Back in the day, a typical Diesel loco trust agreement ran for fifteen years. What has never been entirely clear to me anyway, is WHO actually owns the chooch when the trust is paid up.  

Scraped? As in scraping the paiint off? Or scraping dirt off?

 

Or did you mean "scrapped" as in dismantlled?  

Or he could have meant "Dismantled" 

If it's not too badly scraped, you can usually just touch up the paint.

 

EdKing

Several Clinchfield Challengers sat around the shop at Erwin, Tenn. long after the road had dieselized because their trusts were still in effect, and they couldn't be scrapped as long as the plates were on there.

 

Ed King

I know Scrappy had a scrape.

Then there were the geeps which belonged to a railroad in Maine.  Somehow they had a co-lease agrement with the PRR.  Half a year in Maine, half on PRR.  In the maine's RR livery!

Rich.... Did they scrap engines while owing money on them or only able to scrap engines when paid in full was my question.
$oo

Glad you pointed that out, Rich. As I'm sure you well know, if one were to correct all the bad grammar on the Forum, it almost would be a full time job! At times it seems some people must have slept through 5th grade English classes.  

If the railroad has financed the engine, or if it is owned by a bank trust or some other organization as an investment, of course there would be contractual provisions for compensation of the owner if the engine is scrapped before payment or the lease period is completed. If you lease a car, with or without option to purchase, and wear the car out or total it before the lease has expired, there are provisions for compensation to the leasing company according to some formula. Same thing, essentially, for any leased/financed item, including railroad equipment.

 

In all likelihood, some engines were always owned by an investor, whether a trust or some other organization, and were leased to railroads during their entire useful life.

 

Trusts are the same as individual people as far as ownership. Owners may be various organizations or individuals. In fact, individuals can and do own railroad cars as investments and rent/lease them to railroads or companies that operate railroad cars. Union, teacher, and many other pension funds, or insurance companies, can own such items. In fact, they are large owners of real estate in the United States.

 

You'd be amazed at how many downtown office buildings in cities are owned by big insurance companies. They, like banks and trusts and pension funds, have to invest their money somewhere. Owning railroad equipment and leasing it to railroads is just another type of investment, and certainly the owner will be compensated if its property is scrapped or destroyed while they still own it. If scrapped, it wouldn't be done without the approval of the owner and completion of financial arrangements and adjustments according to the terms of the lease agreement or financing agreement. 

thanks to all who replied and of how they deal with items going to the scrap yard for disposal.

 

$oo