http://www.tnonline.com/online/localnews/05friday/carbon.html

Positive changes
eyed for rail line
By KAREN CIMMS
kcimms[at]tnonline.com
The Carbon County commissioners said Thursday that a railroad historical society's plans to remove a section of tracks from county property will not change the direction they are heading, nor hinder their plans.
The commissioners were commenting on the intentions of the Lackawanna Chapter of the Railway & Locomotive Historical Society, to remove about a mile of track, that it uses to store equipment owned by George Hart and Rail Tours. The tracks had belonged to Hart, but were conveyed to the historical society last year.
Hart's long-term agreement with the county and C&S Railroad will end at the end of this year, when his passenger tourist train service will be replaced by Reading, Blue Mountain and Northern Railroad. RBMN owner Andrew Muller became a part owner of C&S late last fall. Muller and C&S president Jim Zurn decided earlier this year to replace Hart. As the operator of the county's shortline railroad, C&S has the authority to make those decisions.
The county was interested in obtaining ownership of the tracks, but rejected the three proposals it was offered by the historical society, one of which was to purchase the lines outright for $250,000. Earlier this year Muller had estimated the value of the rail lines at about $20,000. A consultant hired by the railroad commission this summer, Joseph Bubble, has said they are worth between $20,000 and $25,000.
The TIMES NEWS was sent a copy of a notice sent to owners of locomotives and other property currently stored on the historical society's tracks, asking those owners to remove their equipment by Nov. 22, so the society could begin removing the lines.

It is most important to understand that a non-profit does not exist to earn full market value for it's assets or efforts. This is true for everything from a steam railroad museum to the local soup kitchen.

The R&LHS says, "The role of the Railway & Locomotive Historical Society has since 1921 been and will continue to be, to preserve, promulgate and interpret the accomplishments of the railroad form of transportation down through history."

These guys are on the low ground here and sinking fast. The silence from both the local and national organizations demonstrate that these guys are not a quality organization. The actions and threats demonstrate that they are not walking the walk when it comes to making good on why they claim to exist in the first place.

It is time for these guys to step up and do what is proper and not worry about market value.

I have been involved with non-profit 501c3 organizations, but not in rail preservation. In my experience, when a 501c3 engages in behaviors that jeopardize their non-profit tax status, the IRS increases scrutiny of all similar organizations. If one organization loses it's 501c3 status, others may follow.

I'm not suggesting that the Lackawanna Chapter or the National R&LHS has actually done anything to violate 501c3, but if the IRS audits them, even the appearence of impropriety may force NRHS and 501c3 rail musuems to have to further justify their tax-exempt status to the IRS.

I'm not suggesting that the Lackawanna Chapter or the National R&LHS has actually done anything to violate 501c3, but if the IRS audits them, even the appearence of impropriety may force NRHS and 501c3 rail musuems to have to further justify their tax-exempt status to the IRS.

I have pieced together a list of donations that the Lackawanna Chapter R&LHS received in the last two years. In addition to the donation of the track in Jim Thorpe they received several grants and in-kind donations for their restoration effort of the Delaware Water Gap station. They have received pro-bono legal services for their lawsuit to gain custody of DL&W 952. These donations, plus membership dues and several raffles run by them brought in well over $25,000 per year for the last two years. They have not filed a Form 990 for either 2002 or 2003 which they were legally required to do. One wonders if they will file one for 2004 if they receive a cash payment for scrapping this track.

I think one thing is being overlooked here. Even non-profits, whether they be tax-exempt entities or not (that's right, not all non-profits are tax-exempt) are obligated to manage their assets in a prudent manner to ensure the perpetuity of the organization. Just like any other entity. -- Ray

They're not obliged to manage their assets in a manner that flies in the face of their mission statement.

While I applaud any and all efforts to attempt to find a solution to the Jim Thorpe issue, I must add a note of caution to the County Commissioners announced intent to seek a meeting with the Chapter.
The Commissioners have been disingenious at best with thier public statements on this issue and I must say that the chances of this proposed meeting being anything other then a classical politicol CYA move is remote.
I sure hope I'm wrong, but unless either the County or one of the railroads(really the two railroads are the same thing as they're both controlled by former steam enthusiast Andy Mueller) make a legitimate offer for these assets and VERY soon then the scrappers torch will light on 11/22 and all concerned will be losers!
It's time for solid action-not meetings!!
Ross Rowland

Ross, with all due respect, your position (which I assume to be that of the chapter) is absurd, and that is that Andy Muller or the county need to PAY DEARLY for properties they recieved for FREE under the assumption that they would or could protect it from destruction.

If transferring ownership to the county or the C&S prevents the destruction of the property, then that would be not only logical but MANDITORY to the spirit of not only the society's charter, but also to the spirit in which Mr. Hart made the donation.

This appears to be nothing more than another no-good historical society trying to make a profit they're not entitled to.

The burden does NOT rest on Andy Muller to make an offer.. the burden lies on the society to PRESERVE the historical property they've been entrusted with by Mr. Hart.

With due respect to Mr. Wowak, I do not,repeate do not,in any way represent the Chapter. As previously posted I am a member, but all postings are strictly one mans opinion!
The Chapters position is that they feel that the County has dealt with Mr. Hart in a rude and disrespectful manner in terminating his 30 year relationship with Jim Thorpe the way they did, and despite this the Chapter made a bona-fide offer to the County(with 3 very fair options in my view) to which the County aswered "no interest"!
Why should the Chapter forfit substantial monies, when all acknowledge that the track is duplicative and the table is not needed??? I'm certainly a strong supporter of preserving and celebrating railroadings proud heritage( I would hope my track record testifys to that) but I must agree with the Chapters stand that in this case the right choice is to turn the unneeded assets into cash that can be better used somewhere else!
Ross Rowland

If the assets were un-needed and had no historic value, Mr. Hart would obviously have scrapped them himself, instead of donating them to a historic society whose intention is obviously now to pillage them for cash value instead of ensuring their continued historic existance, as Mr. Hart obviously intended.

You say that if the scrappers torches are lit, everybody loses.. thats not accurate. Everyone loses except the Society. They make money they don't deserve. This is preservationist blood money, pure and simple.

Maybe since we can't come to agreement on who owns that Lackawanna Camelback, we should scrap it too and split up the revenue?

In reply to Mr. Wowaks assumptions regarding Mr. Harts motivation(s) in giving the track/table to the Society I can only say that I've known George Hart since 1961 and can state that I have never witnessed him dispose of anything by sale or scrapping.
Perhaps he did feel that these assets were duplicative and beyond thier usefull life and would be better scrapped and the money used elsewhere and he knew he couldn't bring himself to do it???
Mr. Wowaks implied suggestion that some of the money the Chapter will recieve from the scrapper be used to persue its lawsuit against the St. Louis museum over the 952 is a good one, and I'm guessing that's where some of the money will go? Ross Rowland

OK readers--

the moderators have been watching this thread for some time now. This is a matter on which firm views are to be expected, and we understand that. But, even allowing for that, the rhetoric in this thread is now scraping the outer edge of our comfort zone.

Let me remind everyone of the core of the RyPN Interchange Guidelines: we ask for "Polite, constructive criticism, and polite responses to same."

We can continue to discuss this organization and its decisions, and even critize and critique them, but only if we keep the discussion measured, and stay away from purely inflammatory characterizations. If we can't hew to these guidelines, we will have to lock the topic.

I certainly hope you do not "lock" the topic as I feel we've been having a meaningful discussion on an important subject and from the views generated and the participation that seems to be the opinion of many members!
I support civility and manners and don't see anything in this thread that threatens either.
Let's not get so sanitized that all we're allowed to discuss is pablum!
Ross Rowland

Erik,
I would have to agree with Mr. Rowland. Please do not lock this thread. I may disagree with his thougths on this topic and others, but his opinions give you pause to think, I think this discourse, though hot, has been civil.
Scott

The whole topic of nonprofits using real property for granting writeoffs/generating revenue has attracted a lot of interest -- from the IRS. So much so that on June 30, the IRS issued an advisory that might be of interest to all parties concerned - and any other nonprofit that has been donated property:

http://www.irs.gov/pub/irs-drop/n-04-41.pdf