locked Re: SD40-2 initial delivery questions


George Eichelberger
 

There are quite a few waybills and shipping notices for Southern diesel deliveries in the SRHA archives. The Monon was used for deliveries from EMD many times using the Monon-Southern line through French Lick. Waybills for locos to Louisville, French Lick, etc. typically did not show them as final destination for the move.

By including delivery to, say, Danville, KY, on a waybill via Louisville, the Southern participated in part of the freight charge. That charge was usually pre-paid by the shipper (as part of the quoted price and with Southern’s approval) and the Southern computed their portion of the shipment as a “discount” on the loco purchase. In the Louisville-Danville example, the locos would be “intercepted” and put in service at Louisville.

In other examples, the final destination on the waybill (“delivered” by the Southern) was in a state with low, or no, sales tax.

Note the attached EMD "shipment notice” for Sou 2329 on Dec. 19, 1968. IHB-Monon to Southern at Louisville was typical, the final destination, Jeffersontown, KY here was probably decided because of the tariff in effect at the time. We have several examples of the calculations the Southern prepared to find the best cost, route and destination for various orders By the late 1960s, deliveries avoided the PC because locos were damaged when PC handled them.

Ike

PS Delivery charges for new equipment were very (!) important factors when Southern was deciding on equipment purchases. PC&F submitted proposals for box cars several times but the cost to move cars across the country priced them out of the competition. Fruit Growers in Alexandria, VA had the best advantage. As both Southern and FGE were Virginia corporations, there was no sales tax.



On Feb 17, 2022, at 8:14 PM, Stuart Thayer via groups.io <StuThayer@...> wrote:

Charlie,
 
Wasn't it true that a lot of the new EMD deliveries to the Southern came down the Monon (later L&N)?  I know I have seen photos of brand new Southern units in SB Monon trains.
 
Stuart Thayer

In a message dated 2/17/2022 11:19:08 AM Eastern Standard Time, charlesspowell@... writes:
 
David,
Southern would typically take receive new units dead in tow, from EMD at Louisville. Since Southern used K&IT terminal in Louisville the new units would continue in tow to Danville, KY where the Mechanical Dept. would inspect and officially take delivery. They would then operate to Chattanooga. As Carl has said on Southern merchandise trains standard power was three SDs or four GPs so the SD40-2 got mixed in pretty quick. One exception was that once they proved  their reliability, solid consists of SD40-2s became standard power on a number of the unit coal trains.
Charlie

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