Holly Trolley w/Santa at the Como Harriet Streetcar Line

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Horrible news... Milwaukee Road 261 to go back to the National Railroad Museum!  Here's the press release by Steve Sandberg, Chief Operating Officer of North Star Rail:

Friends of the 261 to return Milwaukee Road 261 to National Railroad Museum

MINNEAPOLIS, Minnesota, Nov. 20, 2009:

The “Friends of the 261” was unable to accept the final offer for an extension of its lease agreement for Milwaukee Road 261 from the National Railroad Museum of Green Bay, Wis. As a result, the famous steam locomotive, which was built in 1944 and used by the “Friends” in excursion service from 1993 to 2008, will eventually return to the Museum as a display.

The National Railroad Museum, which owns the 261, and the “Friends” have been attempting to negotiate a new lease for the past several years. The Friends asked for at least a 15-year lease agreement while the NRM’s final offer was for a ten-year term. Friends of the 261 and North Star Rail Chief Operating Officer Steve Sandberg said the decision to return 261 was based on simple economics. “The Museum’s latest offer would only extend us a ten-year lease, but under current Federal regulations boiler overhauls have a 15-year term. The cost for the 10-year lease was $20,000 per year with a four percent increase annually compounding. After incurring the cost of rebuilding the locomotive, the Friends would be paying in addition an average of $25,000 per year for the 10-year period. After ten years we would have to give the locomotive back with 33 percent of its service life still left. It’s hard to amortize the cost of a 15-year boiler overhaul in a ten-year time frame. We just could not economically justify spending $400,000 to $600,000 on an overhaul, plus paying a substantially increased lease payment, for only a ten-year lease term.”

For several years the “Friends” has been cross subsidizing the cost of 261 operations by leasing or chartering passenger cars from a fleet of cars it has built up over the years. This has enabled the not for profit Friends of 261 to keep the 261 in operation – the only privately sponsored mainline steam organization to do so, year after year.

Sandberg said it has been a privilege to restore and operate 261 over the past 15 years. “It has been one of the joys of my life to operate Milwaukee Road 261, especially since my grandfather used to run the locomotive on the Milwaukee Road when it was in regular service. I want to thank the National Railroad Museum for entrusting our organization with this historic engine for the last decade and a half.”

Even with the conclusion of 261 operations, the Friends of the 261 will remain active. The group will continue to charter and lease its extensive fleet of passenger cars for Amtrak and excursion trips. In 2010, the group is working to bring another main line steam locomotive to Minneapolis for several excursions, and, in the long run, may acquire another steam locomotive to restore to operation.

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This is horrible news for all the friends of Milwaukee Road 261 that are out there.  The National Railroad Museum's policy of "money first/railfans second" has given them a huge black eye over this.  I encourage ALL railfans everywhere to write or email the National Railroad Museum in their disgust over this terrible decision.  A link to their website for comments is HERE.  Please write them about your disapproval over this.  I've rode and chased this locomotive for years and will miss it dearly.  Godspeed 261...