Law suit for Springfield Terminal..

what???? Springfield Terminal not paying?....that is nothing new!!
The Lowell Sun news today....


" Freight car giant targets Billerica railway company in $230G lawsuit
By ERIK ARVIDSON, Sun Statehouse Bureau



BOSTON -- A company that leases freight rail cars is suing a subsidiary of Billerica-based Guilford Transportation Systems Inc., alleging that the rail company is delinquent on payments for rail car services.

GATX Financial Corp. of Chicago filed the lawsuit in U.S. District Court on Wednesday seeking $231,748 "

http://www.lowellsun.com/front/ci_3949600

...Another argument in favor of doing away with private car mileage altogether.

Cowford wrote:...Another argument in favor of doing away with private car mileage altogether.

I must have missed that part of the article.

I would say it's more of an argument for "doing away with" companies that fail to live up to binding agreements to which they are a party.

Amen, LCJ. But private car mileage is an anachronism that should have been done away with years ago. It is accounting nightmare that provides little benefit in only a few instances for shippers. And it NEVER benefits a railroad... that is unless you collect the money and then never disburse it!

Cowford wrote:...that is unless you collect the money and then never disburse it!

That apparently sums up the ST approach!

I understand it's a headache, but how does the Cowford plan address private car owners' compensation?

Look for another Hamilton Berger/Perry Mason mis -match with the Big G liars prevailing again.

I understand it's a headache, but how does the Cowford plan address private car owners' compensation?

Easy - phase out private car mileage and offer only "zero" mileage rates. About 75% of private car movements are zero-rated as it is. Full mileage payout (MPO) rates are a bit a shell game, really... Charge a rate that includes the MPO and disburse it back to the shipper through the car owner three months later. It is an accounting NIGHTMARE! Zero MPO rates are simply lower rates that are net of the MPO.

Many may not know, but when the Mexican railroads privatized back several years ago, they abolished the private car MPO system... in part from advice by former Conrail folks acting in a consulting capacity.