Someone spilled the beans early....Just found this on the Green Bay Press Gazette.

http://www.greenbaypressgazette.com/art ... locomotive" target="_blank

I was really hoping a new steamer would get it's chance to polish the rails again, but I can't say I'm surprised or disappointed by this news.

John.

I am pleased by this news, although part of me is still cautious and not going to believe it until I hear or read the words from Steve Sandburg's mouth himself or see "Owned by the Friends of 261" stenciled somewhere on the 261's tender. While it appears to be a happy ending for both parties involved, it is a shame that the 261 has been in limbo for nearly 2 years during time that could have been invested in its overhaul. With that said, I'll be interested in reading a recap of Steve's announcement in Chicago tomorrow.

Steven Ashley
Spartanburg, SC

From the Train Newswire:

MINNEAPOLIS - The longtime operator of Milwaukee Road 4-8-4 steam locomotive No. 261 will buy the engine for $225,000 and continue operating it in excursion service. The deal, announced today, ends a long-standing feud between the engine's owner and operator that nearly saw it returned to static display.

The National Railroad Museum in Green Bay, Wis., owns the engine, but has leased it to the Minneapolis-based Friends of the 261 since 1995. The two sides have been at loggerheads over a lease price going forward, and the engine hasn't operated since 2008.

No. 261 is a 1944 Alco product, and ran for the Milwaukee Road for 10 years. The railroad donated the engine to the museum in 1956. In 1992, a for-profit corporation, North Star Rail Inc., leased the engine from the museum and restored it to operation the following year. North Star dropped out in 1995, and the nonprofit friends group took over. From 1993 to 2008, Milwaukee 261 was a stalwart of steam, running at least one trip each year, a record unmatched by any other mainline steam engine. It pulled excursions until September 2008, when it came due for its federally mandated inspection and overhaul. That's when the rent dispute engulfed the engine.

Last fall, the museum put No. 261 up for sale through broker Sterling Rail for $225,000. It found a taker in a California businessman who hoped to buy the engine and have the friends overhaul and operate it. That deal fell through this March, and the museum then contacted Steve Sandberg, the friends' chief operating officer, offering to sell it. This week, a purchase agreement was signed and the sale went forward.

In a TRAINS interview, Sandberg describes the sale as a winner for both sides. "We're pleased that we were able to purchase 261 and that it can now be overhauled," he said. "While it was not originally our intention to buy the locomotive, after the museum offered it to us, we decided that was the only option if 261 was to run again," he said.

While Sandberg's group now owns the engine, hurdles remain. The group had to use much of the cash it had originally earmarked to restore 261 on the purchase, which means it now doesn't have enough money on hand to complete the rebuild. Sandberg said that while crews will resume work on the 261's rebuild immediately, the group would also concentrate on fundraising.

"Through the years of negotiations, many people came to me and said, 'If you ever buy the engine, let me know and I'll make a donation.' Well, now I'm asking those people and anyone else who will listen that we need their help if 261 is to run again."

Museum Operations Manager Bob Lettenberger said money the museum is raising through the sale will go toward restoration of rolling stock displayed there. Bob Young, the museum's acting executive director, said he's pleased the engine will continue to operate as part of the agreement.

Donations can be sent to Railroading Heritage of Midwest America, friends affiliate, at 4322 Lakepoint Court, Shoreview, MN 55126 or by visiting http://www.261.com. - Steve Glischinski

It was as inevitable as the sun rising in the east as soon as NRM cut the price to $225,000.

One wonders how related this is to the head of the museum leaving (presumably to go make headaches for someone else).

Steve

Well, some good news from a previously not so good situation. I am glad that NRM finally decided to be at least reasonable. Essentially they got about scrap price plus the expense of getting another locomotive out of a park or another museum and moving it to the Friends' shop location, so I'd say the price was fair, but it wasn't a super steal by any means.

Mike

Im not a real big fan of the 261, but am very glad a steamer is saved and able to run in a few years. Now since the "FO261" own it, they should pull a couple a freight trains while their at it. =]

Im not the biggest MLW 261 fan out there, but it would be really cool to see her out in California. I was kinda wishing that Steve found that NYC Hudson in the barn.....

If you're not a fan, you may just not have seen it...

Pete Lerro ran a two and a 1/2 day charter and one of the days she ran (without a diseasel) with a solid consist of Hiawatha cars and she looked amazing! Google up Milwaukee Road and you may never return. Aside from the engine itself, the railroad has a fascinating history.

MILW #261 #1

MILW #261 #2

MILW SKYLOUNGE

I'm glad to see it back especially when you consider how many Milwaukee liveried cars the group already owns, many specific to the MILW.

On a side note, I thought for sure Steve and the Friends were going to get a better deal then $225,000.00 - the last price the Museum caved to without a buyer.

/Mitch

Well it's good news, but to be honest, I'm underwhelmed. I had real hopes of seeing a CB&Q Hudson getting her chance. Cest la Vapeur.

This sale of the 261 absolutely makes the most sense. They've already got all her parts, know her quirks inside & out as they've run here for what, 10 years now ? There won't be any real surprises as they rebuild her. Plus her mechanics and other workers already know her too !

Let's all start donating some $ her way :)

Mike

So, now that it is settled, can anyone who was teasing us with the "inside info" about the California rumor spill the beans now?

Rob

Don't worry Steve, 765 went the same route.

You may have a head start and maybe it won't take 4 years to bring 261 back.
I suggest getting an existing mainliner steam like 765 to run some fundraising trips.

Can someone recall the history? What is the difference between North Star Rail and the current organization/