THe posts below about CSX and the B&O made me a little surprised until I considered that I've generally found most posts here witten by what I believe to be decent, well meaning folks.

Therefore, I guess I shouldn't be surprised by the relative naivete about how corporate charitable decisions are made.

Folks,good-faith responsibility and budgets have NOTHING to do with it.

I have something of an interest in corporate philanthropy because of how it really works. In some cases-some company will fund something because its a CEO's pet cause. In the old days, it was very common to fund the local opera or something-with the understanding that Mrs. CEO ran it. In some cases-the funding was insurance so that the executive would have a nice sinecure after retirement. Economists commonly refer to that as the "agency" problem.

Today, its a little different. You see many companies giving money to some organization that generally produces mounds of anti-corporate literature. Why? because if Woody's antes up for Greenspeed they won't be accused (very publicly) of tearing down the forest. This sort of tactic has been used successfully by high-profile individuals such as Jesse Jackson and others.

We are by and large a small group and I dare say generally above average intellectually so we can't send out a simple-minded charge on a newsletter, or rant on crossfire with a well-known individual and corral millions to boycott a company. Similarly, we don't own a congressman who will dream up exotic tax or regulatory provisions to punish major companies for not donating to the pressure group that delivers votes, so we don't have the ability to demand tribute like barbarians at the gate.

If RR preservastion is ever to get a substantial increase in corporate donations-its not coming from the Fortune 500-but from smaller concerns, to invisible to be subject to the kind of shakedown thats the cost of doing business on Wall Street. We'll have to find "angels" that care about what we care about-preserving our heritage. Heritage doesn't mean much to a multinational. It might mean something to the third-generation owner of a local store trying to obtain goodwill in the community.

In short, Think Main Street, not Wall Steet.

Some will point out that the Freedom Train was heavily corporate-sponsored. Well I worked for 10 1/2 years for one of the sponsors-an insurance company on rocky road (wink)-and that was a lifetime ago.

Today that organization would never donate for various reasons:

1.) Doesn't promote diversity (whatever the hell that is)

2.) Produces carbonaceous emission-not very green.

3.) Legal department would likely assume (probably rightly so) that a grade crossing accident meant "sewage" from those on the dark side of the law.

4.) See above.



superheater@rrmail.com

My favorite corporation when it comes to giving is Berkshire Hathaway (Warren Buffet's company). Each year they ask each stockholder what charity they would like the company to give to. The total corporate giving amount is determined and then checks go out to each charity prorated by the number of shares requesting that charity.

Buffet feels that this prevents management from unfairly giving to its own pet projects.

Erie Lackawanna Dining Car Preservation Society
tstuy@eldcps.org

Tim, thanks for pointing out a commendable and notable exception.

Superheater@rrmail.com

In my area North Texas several of the large grocery chains issue discount cards which also allow a portion of your yearly purchases to be donated to the charity of your choice which includes the Southwest Railroad Historic Society/Age of Steam. Not a large scource of revenue, but every little bit helps.

tcox@parknet.pmh.org

> In my area North Texas several of the large
> grocery chains issue discount cards which
> also allow a portion of your yearly
> purchases to be donated to the charity of
> your choice which includes the Southwest
> Railroad Historic Society/Age of Steam. Not
> a large scource of revenue, but every little
> bit helps.

Think you could share how that works in detail as an article?

Superheater@rrmail.com

Corporate philanthropy is by no means extinct, but it's not universal and when it happens it's guided by the answer to the question, "What's in it for us?" When a gift to your railroad museum can buy a corporation something it wants, you'll get the gift.

Typically this is in the form of some kind of corporate halo, or a favorable contribution to an ad campaign or some other aspect of public image. Again, if the public image of your museum is such that you contribute to a corporation's image by association, you'll score.

The chain grocery stores mentioned above are a good example. Last night I saw a big poster at the local Target variety store, emphasizing how much "local giving" the chain does. Target knows it could become, like Wal-Mart, the object of anti-corporate propaganda campaigns mounted by anti-growth crusaders and retail unions, so it tries to head off opposition by contributing to local charities and cultivating the image of a main-street business. Seems to work, although it hasn't bought them the kind of adulation that their corporate ancestor, Detroit's J.L. Hudson Co. got with its massive and highly-visible charity gestures in the last century. When the Hudson name was finally erased last fall, the new corporate name, Marshall Field, had to promise that it would continue the tradition of corporate giving. There is an element of extortion here, but I'll take the proceeds anyway.

The Steam Railroading Institute has had some success in cooperative promotions with a Michigan retail chain, such as hustling 1225-related merchandise, and in some outright gifts of money or materiel. This was all arranged at the local-store level. (This chain is big time, but is privately-held and still operates as if it were run by the Dutch anarchist union organizer who founded the first grocery store in 1934 and grew rich cashing dole checks when the Main Street Babbitt grocers wouldn't.)

Aarne H. Frobom
The Steam Railroading Institute
P. O. Box 665
Owosso, MI 48867-0665

> Think you could share how that works in
> detail as an article?
I would suggest that anyone interested in the program contact Southwest Railroad Historic Society/Age of Steam CEO Bob LaPrelle directly, but here is what I know about the program. The three stores that I am know participate are Kroger, Albertsons, and Tom Thumb, which was a local chain that I believe is now owned by Safeway. I believe Kroger started the program in North Texas and they issued Kroger Cares Cards to the organizations which are given to the members and are scanned before paying for your purchases and they then donate 1% of your purchase to that organization. I believe that the Kroger program only operates in Texas. The other two companies tie the donation to their discount card and the organization receives a number which is then tied to your card.

I think all you have to be is a 501(c)(3) or a school to participate. I know the SRHS/AOS is involved with Kroger and Tom Thumb but the Albersons program may be only for schools.

I believe Hume was on the SRHS/AOS board at the time the program started about 5 years ago and maybe he remembers something too. It is actually a pretty good way for a company that is going to contribute to the community to allow consumers to direct donations.



tcox@parknet.pmh.org

Of course, their stock sells for $61,700 per share (today's close). Perhaps selling a share and giving the proceeds to the railway preservation organization of your choice would be more effective!

pnichol6@prodigy.net