My understanding is that transfer cabooses are usually used when transferring freight cars from one yard to another within city limits or surrounding metropolitan areas. They are for very short hauls and provide shelter for the rear end crew. My guess is that they are no longer used or are rarely used.
Being a former railroader, the biggest reason for them was to protect back up moves, You might have to shove a train a half mile out of a yard to go the other direction, and it did afford the crew members some protection..
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