Interesting question re: 261

Alexander D. Mitchell IV · **Posted:** Sun May 09, 2010 11:32 pm

So, here we have a locomotive with a proven track record, in prime operating condition (well, after sinking in a couple hundred grand in mandated repairs that are arguable more bureaucratically mandated than actually required)......... up for sale.......

.......... and the price was "only" (reportedly) $225K..........

I wonder if this will somehow impact the "sale price" of other potentially-for-sale or openly-for-sale steamers. Like if someone had reason to make an offer for Reading 2100, or B&LE 643, or Chessie 614, or Grand Canyon RR's SP&S 539, or.......

JimBoylan · **Posted:** Mon May 10, 2010 9:10 am

Alexander D. Mitchell IV wrote:

or.......

PRR 7002 or 425 or even 1361? Money is scarce in Pennsylvania, at both the state and the museum levels! The State of Pennsylvania already had an auction of surplus Museum pieces.

o anderson · **Posted:** Mon May 10, 2010 1:31 pm

Is this question related to the 261 discussion of January-February this year? What I hope is that this sale will affect the reality for folks who want to sell a slightly dilapidated plain wooden coach for $500,000 or more. I think Bob Harbison summarized the previous discussion well with this post:

Quote:

Sadly, restoring steam, especially big steam, is like working on a $500 used car. When the transmission goes out, and you put $1500 in it for a new tranny, what you get in return is.... a used car worth $500.

While nobody likes the fact that the base price for big steam is determined mostly by a scale and the current value of scrap iron, the used locomotive market has shown that all too often that's exactly the case.

http://server.rypn.org/forums/viewtopic.php?f=1&t=28695&p=135394

filmteknik · **Posted:** Mon May 10, 2010 2:52 pm

It's pretty simple. If you need or want a working steam locomotive it's worth the scrap value plus the amounts you *don't* have to put into the hulker to get it running.

If you don't need or want a working steam locomotive then it's just worth the price of the scrap metal plus what one might get for various parts and appliances that could be stripped and sold.

I would presume to take, say, MILW 265 and buy her at scrap + jewelry prices, and get her into the same state 261 is now (which I presume is excellent running order minus only checking the boiler shell, replacing the tubes and whatever other small repairs they have planned) would cost a lot more than they are paying for 261. So for them it's a good deal in terms of price although not having to buy at all and just paying rent would probably be better.

Maybe someone will step forward and give them a loan under terms similar to what they had been or would have been willing to pay under a lease. That would leave them with capital for the overhaul AND outright ownership (presuming they do not default).