Question about repaints?

[jflessne]

Can someone explain [FONT=Arial, Default Font] CN - IC Repaint's....I'm assuming they are former IC engines now working for the CN railway???? Why leave the rements of the IC?
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[doctorwayne]

It could be just a polite nod to the heritage of the loco, but it's more likely done for tax purposes. I'm uncertain as to what the advantages would be, although GTW, GT, CV, DW&P, and WC all are, or were, part of CN's American holdings, and all kept their individual identities.

Wayne

 

[railohio]

Probably for accounting purposes. Railroads don't buy motive power, they lease it with long-term agreements. Keeps track of which units belong to which financial institution easier. This allows CN to project a unified corporate image and not have to merge all the books right away.

 

[jflessne]

Brian i'm not sure I understand. Are you saying CN is "leasing" the equipment? From who? Illinois Central is long gone.

 

[railohio]

All railroads lease their equipment; it's owned by financial institutions. In this instance it was probably just easier to keep the records for the engines on the books for the IC than to roll them all under the CN banner at the time of the takeover.

 

[Triplex]

Railroads often own subsidiaries, which ususally have the same or similar paint schemes as the parent road but are lettered for the subsidiary. Often, eventually, subsidiaries are absorbed outright.

I'm a railfan, not a corporate law expert. I won't pretend to know all the reasons why railroads own subsidiaries. Some examples, though:
At one time, Texas law said that no railroad chartered outside the state could operate within it. Major railroads thus built smaller lines into Texas, or bought lines that were already there. I think this was why SP had the Texas & New Orleans. ATSF ended up with two Texas subsidiaries: the Gulf, Colorado & Santa Fe and the Panhandle & Santa Fe.