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Too Many Abandoned Railroads

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Posted by mudchicken on Monday, January 4, 2010 12:39 PM

Wondering if some of the "railbanking" confusion has to deal with STB "Discontinuance of Service" issues where a line is not abandoned, but is sitting out in the weeds a-la UP's Tennessee Pass line or NS' old CR/PC/NYC-P&E line in Illinois between Mansfield and Bloomington along I-74 (Peoria to Urbana line)

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Posted by The Butler on Monday, January 4, 2010 1:02 PM

Is "Discontinuance of Service" the same as being listed o/s?

James


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Posted by aricat on Monday, January 4, 2010 1:07 PM

In the February issue of Trains we have a map of the Penn Central in 1969. What is apparent is Penn Central is overbuilt with duplicating lines like St Louis to Indianapolis among others. How we got from this map to the creation of Conrail is legal, political, and historical story. Part of this is that cute political animal known as the ICC. I think it is important to know the why and the wherefore and Messrs Richards,Metzger,and Van Hattem did that without using the words liberal or conservative or a US President.

Anyone who follows the Passenger or Transit forums knows that politics lurks just below the surface. The big buzz word is Federal funding and state subsidies. It is tough not to cross the boundary sometimes.Are we crossing the line if we say that a politican supports favorable railroad legislation  or as happened in Don Phillips column that a certain politican is a railfan ?

I feel that this issue posed it this thread did cross the line because it asked a political question and sought a political conclusion.

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Posted by mudchicken on Monday, January 4, 2010 1:16 PM

Sometimes. Other times it is "embargoed" or lost its common carrier status for multiple reasons. Your Missouri Central/ CRIP main falls into the discontinuance of service catagory west of Union MO plus MODOT did a really stupid stunt on US-65(?) over by Sedalia which effectively cut the line in two without permission. 

The Butler

Is "Discontinuance of Service" the same as being listed o/s?

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Posted by blownout cylinder on Monday, January 4, 2010 2:21 PM

mudchicken

Wondering if some of the "railbanking" confusion has to deal with STB "Discontinuance of Service" issues where a line is not abandoned, but is sitting out in the weeds a-la UP's Tennessee Pass line or NS' old CR/PC/NYC-P&E line in Illinois between Mansfield and Bloomington along I-74 (Peoria to Urbana line)

Is that like the scenario being played out on Stampede pass out west? Last I heard there was no traffic going over Stampede but that it was being sent over Stevens instead---or was it the other way 'round---

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Posted by mudchicken on Monday, January 4, 2010 2:25 PM

Stampede is running and back in BNSF's hands since the late 90's..... When it was in Washington Central's hands, Cle Elum over the hill to almost Kent was embargoed and almost discontinued due to a washout.

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Posted by mudchicken on Monday, January 4, 2010 2:30 PM

Railway Man

BT CPSO 266

Gas companies are looking to railroads to aid in the drilling. The only problem is the rail industries flexibility.

The railroads are focusing on intercity intermodal movements and a focus on perfecting their steel interstates. 

I have no idea what you are talking about.  Could you explain?

RWM

Any chance that this was somehow twisted in some convoluted way from the pipeline industry's whining and bawling about having to play by the railroad's rules every time they show up at a proposed pipeline crossing at the last minute and totally clueless?
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Posted by blownout cylinder on Monday, January 4, 2010 3:10 PM

mudchicken

Stampede is running and back in BNSF's hands since the late 90's..... When it was in Washington Central's hands, Cle Elum over the hill to almost Kent was embargoed and almost discontinued due to a washout.

That explains that then---I saw on another forum recently that there seemed to be something messing it up again and that somehow Steven's Pass was thrown in there. One of the two was reported to have some traffic being rerouted or somesuch----AACH!!--whateverBlush

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Posted by schlimm on Monday, January 4, 2010 3:48 PM

mudchicken
NS' old CR/PC/NYC-P&E line in Illinois between Mansfield and Bloomington along I-74 (Peoria to Urbana line)

 

I remember that line going behind the dump I lived in in Urbana as an undergrad.  It had night trains back then (late 60's).  I heard somewhere a chartered train brought the West Point football team there in 1959.  Is anything left of it?

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Posted by mudchicken on Monday, January 4, 2010 5:02 PM

In Champaign-Urbana closest to the school, the NS uses a rail line that is the cobbled together combination of the remnants of the Wabash  and P&E parallel rights of way on one main track that is 105# and 112# jointed with poor allignment. Both railroads were relatively narrow in R/W width.  

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Posted by TomDiehl on Monday, January 4, 2010 5:26 PM

Anyone else notice that our original poster hasn't been back on this thread?

Smile, it makes people wonder what you're up to. Chief of Sanitation; Clowntown
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Posted by schlimm on Monday, January 4, 2010 5:29 PM

mudchicken
remnants of the Wabash  and P&E parallel rights of way on one main track that is 105# and 112# jointed with poor allignment

The C-U area used to be great railfanning back in the late 60's:  IC, IT, P&E and C&EI and NKP not too far away.  I had forgotten about the Wabash, but never saw their engines over in Urbana.  But the ROW did parallel Rt. 47 and saw the Bluebird once or twice.

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Posted by blownout cylinder on Monday, January 4, 2010 5:50 PM
TomDiehl

Anyone else notice that our original poster hasn't been back on this thread?

Noticed that awhile ago-----no editorial from this'un!!

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Posted by gabe on Monday, January 4, 2010 7:19 PM

Railway Man

Convicted One

I'm sure I will end up hating myself for opening my big mouth without having my own source at arms reach, but I have a vague memory of reading a source that claimed that the Cloverleaf was a line that was strategically dismantled  by the acquiring Class 1 to assure no one would pop up and compete with their nearly parallel former Wabash. This was done despite active protests from line side shippers that wished to continue using the line.

This was before the regulated era? I wasn't looking back more than about 50 years in time.  Prior to the regulated era many interesting things happened.

If it was during the N&W acquisitions, then I disbelieve the source.  Lots of small shippers complain during abandonments.  If you can get them to be honest, their expectation is that their service is either a "right" or "should be subsidized by large shippers somewhere else."  Again, no railroad will walk willingly away from a business opportunity that pays its costs.  Railroads don't necessarily even have to turn a profit on the opportunity because it can generate system efficiencies that generate the profit.  However, there are many cases where the line doesn't generate enough traffic to cover its costs, but still has a few small shippers on it who lose their rail service.  It leads to the question of whether the many should pay for the misfortune of a few. 

RWM

RWM

I believe the "strategic severance" of the Clover Leaf/Nickle Platte line was a little more complex than that, Convicted One.  The initial discontinuance of through-train service was wrought by a fire on a fairly large wooden bridge (just northeast of Metcaff, Illinois I seem to remeber).  Once the line was severed via fire, N&W claimed that there was no reason to undergo the expense to rebuild the bridge, and so beganeth the dismantling of the south western brance of the Clover Leaf. 

It was clearly arson that started the fire.  Of course, shippers/conspiracy theorists claimed the fire was set by the N&W (I am pretty sure that the line was N&W at that time, rather than Wabash) in order to facilitate abandonment proceedings and not allow a potential competitor to use the Clover Leaf.

Of course, I don't have any idea wheather the black-helicopter believers (thanks for giving me yet another great term RWM) are right or wrong on this one.  However, interestingly, the way I learned of the bridge fire, in 1992ish, NS wanted to build a spur to a landfill near Litchfield, Illinois.  A building was in the way of NS' desired spur, and was basically blocking the multi-million dollar deal.  The building burned as a result of arson a week later.  Tragically, a volunteer fire fighter was either killed or severely injured (I can't remember which) in the attempt to fight the fire.  Of course, people blamed NS for the fire fighter, and cited the burning of the bridge as NS' history of starting fires to achieve its end (I am still surprised NS did not sue the paper for the defamatory inuendo on that one, other than the fact that it was judgment proof).

At the time, I more or less believed that NS/N&W was responsible for both fires.  Now, as an attorney, there is no way I believe that NS has such temerity, as the risk/reward for such criminal activity for a non-judgment proof corporation simply is not worth the risk.  Also, it is noteworthy that NS eventually passed on the landfill deal and did not build the spur.

In any event, the initial severance of the Clover Leaf line was from this bridge fire, rather than a straight abandonment.

Gabe

P.S.  RWM, the reason I am copying you on this one is, I seem to remember an individual with unequalled knowledge of the railroad industry and whom I have very high respect for once told me at a University of Depaul rail confernce that there was a Missouri Pacific line that was abandoned more or less to keep it from falling into the hands of a competitor.  Of course, I am not contending that this disproves the claim that railroads do not abandon lines for such reasons, but I am wondering whether the MoPac line (that I believe saw SP freight, or vice versa) was some kind of exception that proves the rule.

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Posted by Andrew Falconer on Monday, January 4, 2010 7:36 PM

If a rail line is converted to a trail, there is no need to rip up the tracks.

Just put 3" of asphalt or concrete over the ties. Allow the flanges to clear the rails.

In an emergency the trains can detour back over the "abandoned" rail lines.

Andrew

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Posted by mudchicken on Monday, January 4, 2010 9:22 PM

The only place asphalt or concrete belongs is under the ballast. No railroader worth his salt is going to consent to rrunning for miles on that type of scenario. Whistling

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Posted by BaltACD on Monday, January 4, 2010 9:52 PM

Andrew Falconer

If a rail line is converted to a trail, there is no need to rip up the tracks.

Just put 3" of asphalt or concrete over the ties. Allow the flanges to clear the rails.

In an emergency the trains can detour back over the "abandoned" rail lines.

Andrew

As long as there is ties, rail and roadbed....be prepared to pay taxes on it....'abandoned' or not.

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Posted by blownout cylinder on Monday, January 4, 2010 11:30 PM

mudchicken

Stampede is running and back in BNSF's hands since the late 90's..... When it was in Washington Central's hands, Cle Elum over the hill to almost Kent was embargoed and almost discontinued due to a washout.

OK--My brain went into spasm mode----Black Eye

The track that I was thinking about was the BNSF line on the Snoqualmie Pass. There were sections in/out of service(?) that are being dealt with and the one section that I caught recently was that the state of Washington recently had extended some kind of an agreement to sometime in July of 2010 for something to be done between Ellenburg and Lind. So now what?

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Posted by Falcon48 on Tuesday, January 5, 2010 1:05 AM

cx500

Convicted One

Railwayman's explanation that at abandonment anyone may purchase a defunct line at cost is certainly intriguing, but I have to suspect that in  many instances - railroads have gone out of their way to prevent potential competitors from picking up valuable corridors

 

There is certainly an appearance in some cases that this strategy has in fact been reality.  Incremental abandonment effectively prevents anyone else taking over and I suspect it has been so used. 

First of all abandon say 30 miles in the middle of the line.  There is no way that that can become a viable operation on its own, and the rails disappear.  Then shorten one or both stubs by another 15 miles; again completely unviable for any other operator.  Finally the rest get abandoned.  A short line or regional might have been able to succeed with the entire line, perhaps developing new local business, connecting parts of their local empire, or to a new interchange.  But it would be foolish for them to buy up the portions as they came up for abandonment since there would be no possible return on the investment until the whole route was available, at best many years in the future and possibly never.

The above is a hypothetical case, but I have seen some instances in Canada that resembled this approach more than a little.  The old rules under the ICC and other state (and Canadian) agencies made it very difficult for the railroads to get out of money losing lines.  That all too often led to bankruptcy of a railroad; we are well rid of that rigid and confiscatory regulatory regime. 

On the other hand I can see value for some control to discourage incremental abandonment, perhaps by requiring an interval, say 10 years, before the next portion can be abandoned.  Usually the entire route has no role in the long term strategy of a Class 1.  This would encourage them to make it available as whole and give the line a better chance of survival under a local operator.

John

I've been involved in close to a hundred rail abandonments.  "Incremental abandonment" may look good as a conspiracy theory, but it doesn't match reality.  If you look at the actual economics, there's no way you can make a line more "abandonable" by abandoning a money losing segment of a longer line.  It's the other way around.  If the railroad's end game is to abandon the entire line, it's better from a regulatory perspective to treat it as a single line.  The reason railroads abandon segments of longer lines is because they see the remaining segments as potentially viable, at least for the short term.

With respect to "rails to trails", I doubt if any railroads do trail deals as a way to preserve the ROW for future rail reactivation.  If a railroad wants to preserve a ROW for potential reactiveation, it does a "discontinuance" (for example, Tennessee Pass).  From a railroad's standpoint, a trail deal is normally a convenient way of liquidating a right of way for which the railroad has no use.     

   

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Posted by Bob-Fryml on Tuesday, January 5, 2010 2:28 AM

gabe

A few points:

(2) Greyhounds, I 50% agree with you.  However, I think there are two lines that should not have been abandoned--and I think there are a lot of people in Chicago who agree with me that the North Shore was a tragic loss and would be extremely useful to have today.

Gabe

Gabe:-  Concerning the late, great, Chicago, North Shore & Milwaukee, emotionally I have to agree with you.  Everytime my travels take me from Waukegan to North Chicago, I have to detour along all of those side streets and back alleys to inspect what was once a great interurban right-of-way, and by extension my favorite railroad.  To this day I can never make that journey without getting a little misty-eyed. 

But in the end the North Shore Line's competition wasn't just the modernizing, air conditioned commuter trains operated by the CNW and MILW, but the motorist who abandoned the North Shore for the Edens Expressway, competing toll roads that lead northwards out of Chicago, and the connecting freeways into Milwaukee.  If taxpayer financed operating subsidies and capital grants would have been available exclusively to the North Shore in 1962, I seriously doubt Ben Heineman would have been as enthusiastic about improving comuter services and equipment along the Kenosha Subdivision as he was.

Now let's entertain a dream.  What was essentially the Shore Line Route of the C.N.S.& M. could be resurrected fairly easily and at less cost than one might think. 

How, you ask?

  1. Build a short, multi-billion dollar connection between the CTA's Howard St. terminal and the Kenosha Sub. - remember, this would be a State of Illinois government project (hence the outrageous price tag).
  2. Hang wire all the way to Milwaukee!

An amusing fantasy, no?

    

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Posted by Bob-Fryml on Tuesday, January 5, 2010 2:41 AM

During the late 1960s or early '70s Trains editor David P. Morgan commented quite vigorously about The Milwaukee Road's attempts to abandon two money-losing branchlines in northwestern South Dakota.  The longer of the two lines connected with the Puget Sound Extension a few miles west of Mobridge and extended to Faith.  The other line branched from this one and ran to Isabell(?).  If I recall correctly, the upshot of Mr. Morgan's argument for abandonment centered around the U.S. Constitutional question of the taking of private property - in this case the railroad stockholder's equity and profits - without fair and just compensation.

Also, if I recall correctly, the case surrounding the abandonment of these two branchlines led to the development of an I.C.C. formula that effectively said that a branchline had to generate so many revenue loads per route mile annually in order to be considered economically viable.

QUESTION:  Does anyone recall what that I.C.C. formula was?   

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Posted by Bob-Fryml on Tuesday, January 5, 2010 3:15 AM

During the 19th century period of railway expansion, the real money was made in building lines, not operating trains.  Once the construction of a branchline between "Nowhere" and "West Podunk" was completed, operating trains may have been an afterthought.  But as expressed elsewhere in this thread, as long as there were no paved roads, automobiles, or trucks to provide competition, somehow the branch could be made to pay.

In today's world, Class-1-to-branchline spinoffs don't necessarily mean that the branchline is unprofitable.  The spinoff may have occurred because the branch has become a seasonal, one commodity piece of railroad and because it will need significant upgrades to track structure in the future.  Such upgrades would include heavier rail, crosstie renewals, and the replacement of aging trestles that can barely handle today's 132-to-157 ton freight cars.  Spending money for those upgrades, particularly if they're going to cover a declining traffic base, could mean the difference between profitability and a losing proposition.

If the future of the line looks marginal, spin it off to "Ma & Pa" (and I don't mean the Maryland & Pennsylvania Railroad).  Let Ma & Pa operate it, and when the line becomes too decrepit, let Ma & Pa either abandon it or ask for a government handout for rehabilitation.  Politics being what they are today, it's a whole lot easier for a shortline operator to get a taxpayer subsidy to keep a marginally useful line open than a big, bad, old, "robber-baron driven," "bottomless-well-of-money" Class 1.    

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Posted by bobwilcox on Tuesday, January 5, 2010 6:17 AM

After many years of foolishness by the ICC they settled on allowing the railroad abandoning a line to account for its "opportunity costs",  At the C&NW in the late 1970s our oppurtuinity cost was equal to about 6% of the lines liquidation value. It was a very low hurdle to appease ag. shippers who didn't want to lose rail service.

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Posted by BT CPSO 266 on Tuesday, January 5, 2010 12:52 PM
mudchicken

Railway Man

BT CPSO 266

Gas companies are looking to railroads to aid in the drilling. The only problem is the rail industries flexibility.

The railroads are focusing on intercity intermodal movements and a focus on perfecting their steel interstates. 

I have no idea what you are talking about.  Could you explain?

RWM

Any chance that this was somehow twisted in some convoluted way from the pipeline industry's whining and bawling about having to play by the railroad's rules every time they show up at a proposed pipeline crossing at the last minute and totally clueless?
I have posed a new thread discussing the PA railroads involvement in the gas drilling industry. I posed a link to the article on the subject. This may answer your questions. As for what I said about intermodal, I am simply stating that the Class 1's are just investing and counting on a future in intermodal transportation. Intermodal is their future and have to focus on speed and efficiency if they are to remain a profitable industry. I mean coal isn't going to carry them forever.
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Posted by ValleyX on Tuesday, January 5, 2010 4:57 PM

It's interesting to note that both the west end and the east end of the Cloverleaf were eventually abandoned and/or dismembered as a result of bridge catastrophes.  The east end of the Cloverleaf ceased as a through route after September, 1968, when a load failed to clear a bridge over the Auglaize River at Dupont, OH, causing damage to the structure.  Some said that the N&W did this purposely, too, to speed up the process of ending the through route.

The east end of the Cloverleaf, east of Frankfort, IN, was never used as a mainline like the west end was after 1933, when the NKP rerouted traffic. 

The Cloverleaf, as most know, was built as a narrow gauge railroad, had a heavy, twisting grade out of Cayuga, IN, was dark-territory (unsignalled) railroad for most of its length, and no route into St. Louis proper.  It was doomed from the start of the N&W/NKP/WAB unification.

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Posted by greyhounds on Tuesday, January 5, 2010 9:33 PM

Bob-Fryml

gabe

A few points:

(2) Greyhounds, I 50% agree with you.  However, I think there are two lines that should not have been abandoned--and I think there are a lot of people in Chicago who agree with me that the North Shore was a tragic loss and would be extremely useful to have today.

Gabe

Now let's entertain a dream.  What was essentially the Shore Line Route of the C.N.S.& M. could be resurrected fairly easily and at less cost than one might think. 

How, you ask?

  1. Build a short, multi-billion dollar connection between the CTA's Howard St. terminal and the Kenosha Sub. - remember, this would be a State of Illinois government project (hence the outrageous price tag).
  2. Hang wire all the way to Milwaukee!

An amusing fantasy, no?

    

I think Gabe is right too. My bad in leaving out the North Shore.

But I disagree with the connection between the "L" and the Kenosha Sub.  Do it in Evanston where the lines are virtually side by side.  Those North Shore (the place, not the railroad.) commuters would love to get off their tains closer their work on the east side the Loop and on Michigan Avenue.

'Course they'd all want the rest of us to pay for it.  And bein' it's Illinois, by the time everyone was paid their customary fee there wouldn't be enough money left to buy a shovel.

"By many measures, the U.S. freight rail system is the safest, most efficient and cost effective in the world." - Federal Railroad Administration, October, 2009. I'm just your average, everyday, uncivilized howling "anti-government" critic of mass government expenditures for "High Speed Rail" in the US. And I'm gosh darn proud of that.
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Posted by Falcon48 on Tuesday, January 5, 2010 11:57 PM

bobwilcox

After many years of foolishness by the ICC they settled on allowing the railroad abandoning a line to account for its "opportunity costs",  At the C&NW in the late 1970s our oppurtuinity cost was equal to about 6% of the lines liquidation value. It was a very low hurdle to appease ag. shippers who didn't want to lose rail service.

The ICC never allowed lines to be abandoned based solely on "opportunity costs" ( ie., the return the railroad could have earned by reinvesting the net liquidation value of a rail line) unless the abandonment was unopposed.  In contested abandonments, the ICC always required that there be an actual operating loss.

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Posted by Falcon48 on Wednesday, January 6, 2010 12:04 AM

Bob-Fryml

During the late 1960s or early '70s Trains editor David P. Morgan commented quite vigorously about The Milwaukee Road's attempts to abandon two money-losing branchlines in northwestern South Dakota.  The longer of the two lines connected with the Puget Sound Extension a few miles west of Mobridge and extended to Faith.  The other line branched from this one and ran to Isabell(?).  If I recall correctly, the upshot of Mr. Morgan's argument for abandonment centered around the U.S. Constitutional question of the taking of private property - in this case the railroad stockholder's equity and profits - without fair and just compensation.

Also, if I recall correctly, the case surrounding the abandonment of these two branchlines led to the development of an I.C.C. formula that effectively said that a branchline had to generate so many revenue loads per route mile annually in order to be considered economically viable.

QUESTION:  Does anyone recall what that I.C.C. formula was?   

  The ICC "formula" was a presumption that a line generating less than 35 carloads per mile per year was a loser.  This "formula" didn't last very long. The ICC abandoned it after the 1976 4R Act.

The constitutional issue is something called a "regulatory taking".   The issue is the extent to which the government can require a business to provide a money losing service without having to pay compensation.  The basic principal is that the government can do so as long as the enterprise as a whole is profitable, but cannot do so if the company as a whole is unprofitable. 

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Posted by Falcon48 on Wednesday, January 6, 2010 12:39 AM

mudchicken

Wondering if some of the "railbanking" confusion has to deal with STB "Discontinuance of Service" issues where a line is not abandoned, but is sitting out in the weeds a-la UP's Tennessee Pass line or NS' old CR/PC/NYC-P&E line in Illinois between Mansfield and Bloomington along I-74 (Peoria to Urbana line)

  Rail banking can be very confusing, because it is based on a "legal fiction".  The "fiction" is that the railroad is, essentially, still there, even though the tracks may have been ripped up and the ROW paved over. The reason for this "fiction" is to prevent reversionary interests that may vest on cessation of rail use from taking effect. The STB treats trail use as a form of "discontinuance", but it's fundamentally different from "classic" discontinuance (like Tennessee Pass).  In a "classic" discontinuance, the rail infrastructure is mostly left in place.  In a "Trails Act" discontinuance, any infrastructure not usable for a trail (like the track) is typically removed. 
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Posted by Falcon48 on Wednesday, January 6, 2010 1:01 AM

With respect to comments about railroads abandoning rail lines to "keep them out of the hands of a competitor", this isn't a viable strategy.  Under the "offer of financial assistance" provisions of the 1980 Staggers Act, a rail line approved for abandonment is available for sale to a person proposing to continue rail service for "net liquidation value".  If a railroad believes that a competitor might be interested in a rail line and wants to keep the line out of the competitor's hands the very last thing it would do is file for abandonment. 

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