CN's 2700 series Dash 9's

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David Collins
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CN's 2700 series Dash 9's

Unread post by David Collins »

I'm currently working on a train your brain video talking about why CN kept their railroads they bought out as "on-paper" companies.

One thing though that I've never understood that I would like to point out in the video is the 2700 series Dash 9's that CN has, which sport the IC reporting mark under their cab.

I've never seen a photo of video of these units in an IC livery. Were they delivered after the merger with IC/CN? If so, why do they have an IC reporting mark under the cab if they never entered service with the central?

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Re: CN's 2700 series Dash 9's

Unread post by PatAzo »

There would be significant costs to fully merging the IC and the other subsidiaries into the CN. Consider for example all of the property that would have to transfer to the essentially new owner entailing legal work etc. Leaving the IC as paper company is cheaper and CN can still call the shots. To conduct business in the U.S. the CN also needs a domestic entity. Which CN company buys/leases the locomotives will be driven by things like taxes. Where the purchase is best implemented and for example if they can maneuver a subsidiary to show minimal profits.

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Talk
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Re: CN's 2700 series Dash 9's

Unread post by Talk »

i believe that those IC Dash 9's were ordered by the IC but CN Took Delivery.
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DaveO
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Re: CN's 2700 series Dash 9's

Unread post by DaveO »

IC isn't a paper company. It has assets other than a right-of-way.
A paper company would be one that built a railroad but was leased to another company which did everything except actually own the right-of-way.

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Saturnalia
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Re: CN's 2700 series Dash 9's

Unread post by Saturnalia »

The IC, GTW, WC, DMIR, etc aren't "paper companies", they're wholly owned subsidiaries, that act as one seamless system.

They are kept separate because, as mentioned above, the US doesn't want them merged into a foreign entity. CN is allowed to own, but not integrate them. Theoretically, easier and faster to de-integrate in case the government ever decided that was best. There are for sure other reasons as well, but that's the big one.

Same reason why there is no such thing as the CP in the US. It's all run as the SOO Line, often labeled as "Soo Line D/B/A Canadian Pacific".

A paper company is typically viewed as something slightly different than a wholly owned subsidiary. If they'd fully integrated all of the assets, payroll, union contracts, etc, then maybe there'd be an argument for that. But it's all be left alone.
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Re: CN's 2700 series Dash 9's

Unread post by SD80MAC »

To farther elaborate, the blue cards on CN power show actual ownership and operators, too. The newest ET44ACs all say “Grand Trunk Western” on the blue cards.
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