quote:

As the President of the Board of Directors, it is my duty to clarify the National Railroad Museum’s position regarding the lease of the 261, and our relationship with the management team currently leasing the locomotive.

Since 1957, the engine has been a museum piece owned by the National Railroad Museum, but is leased to Railroading Heritage of Midwest America Inc., out of St. Paul, Minnesota. It is the Museum’s first acquisition, and with the possible exception of the UP Big Boy, it is arguably the most important steam locomotive in our collection. Although it may sound trivial at first, this is in fact is an important point. As some of your members may know, the current lease agreement for the 261 is set to expire in late 2011, and the Museum’s Board and the management team that runs the engine have been in negotiations for over two years, so far without result.

On August 15, 2008, the Museum’s executive director, and two board members went to Milwaukee to see the 261 in action. They had been invited as guests that night on one of the short excursions. It was a great experience. We deeply appreciated the chance to see the terrific operation that the management team runs. What most impressed them was the corps of dedicated, friendly, and knowledgeable volunteers who have kept our 261 working in fine fashion. Simply, it’s lovingly cared for. For that, we are grateful.

I speak for the entire Board of Directors when I say that we want nothing more than to continue to lend our museum’s only operating steam locomotive to this management group. But the future of this arrangement greatly depends on them. It goes without saying that the Museum’s Board of Directors has a fiduciary responsibility to keep the National Railroad Museum financially strong so that it can continue to maintain its collections and continue to interpret the nation’s railroading past. But in these tough economic times, all museums—not just the National Railroad Museum — are all looking at their assets, and trying to find ways to maximize their returns. It would be irresponsible for us to ignore this lease agreement as it impacts our ability to continue to meet our mission – fostering an understanding or railroading and its significance to American life.

Over the next few weeks, your members might read or hear about the negotiations regarding the 261. Again, we want to continue to make this engine available for excursions so that as many rail fans can enjoy our railroading past as possible. We appreciate the dedicated work of the Friends of 261 and would like to maintain our relationship with that group as well as the management group who runs the engine. I think we can all agree a fair and equitable business arrangement is the best way to do this. However, I would ask for everyone’s patience as the management team who runs the engine decides what relationship they would like with the National Railroad Museum, with its Board of Directors, and with our locomotive.

Dr. Paul Koch
President Board of Directors, National Railroad Museum

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Originally posted by Hot Water:
The Green Bay Museum wants to "kill the goose that lays the gold egg" so to speak. The fifteen year lease originall negoated between the Friends of 261 and "The Museum" caled for a monthly payment by the Friends of 261 to "The Museum". Without getting into specific dollar amounts, "The Museum" now wants TEN TIMES that monthly mayment!

Thus, 261 goes back to "The Museum"!

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Originally posted by ironlake:

quote:

Originally posted by Hot Water:
The Green Bay Museum wants to "kill the goose that lays the gold egg" so to speak. The fifteen year lease originall negoated between the Friends of 261 and "The Museum" caled for a monthly payment by the Friends of 261 to "The Museum". Without getting into specific dollar amounts, "The Museum" now wants TEN TIMES that monthly mayment!

Thus, 261 goes back to "The Museum"!

The rest of the story as told to me by a 261 conductor on the fall excusion pulled by 4449. The green bay museum is in financil trouble and wants a new lease fee of approximately 80,000 bucks and steve offered the usual 1.00 fee.
If the 261 goes back the museum gets to take it as is , all apart with no flue work or any assembly being done. How do you take back a steamer that is all apart???????????????????????????????
In case you do not know ,261 is all appart for its 15 year flue removal and will sit like that until the friends get a good lease for whatever they will pay. I would guess they will stay at the 1.00 but that is my feelings.
Let the big wigs figure out what they will do with a big engine all apart and how will they get it back to the muesum hundreds of parts.

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And so at the end of the day, the museum gets back its 261, smug in the assumption that the other group will come crawling back. At some point down the road the engine will have deteriorated to the point of a major overhaul. The museum of course won't have the money, and the other group doesn't want to get burned again. A no-win deal.
Simply put from my view...GREED.

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Originally posted by OGR Webmaster:
If they grossed only $80,000, by the time they paid all the bills (Amtrak's fee, insurance, 4449's fee, fuel costs, lubricants, water treatment chemicals, maintenance reserve for the coaches and the locomotive plus the cost of the merchandise they sold on the train) I would be very surprised if they had $5,000 left after all the bills were paid.

It is indeed possible to make a small fortune running a steam locomotive, All you have to do is start with a big one.