more VGN AFE's

[NW Mailing List]

And thank you, Tom, for the additional information.

Sam

----- Original Message ----- 
From: "NW Mailing List" <nw-mailing-list at nwhs.org>
To: <nw-mailing-list at nwhs.org>
Sent: Thursday, April 03, 2008 1:56 PM
Subject: Re: more VGN AFE's



> AFE's are common on all US railroad and are a result of the ICC's ruling 

> in 1915 that freight rates were to be based on the value of the railroads 

> property (Thus is common to call much of this stuff Valuation records.) 

> Those of us who have worked with this material refer to the ICC ruling as 

> the "Accountants and Attorneys Full Employment Act of 1915)

>

> The RR's were required to document the value (cost) of their property. 

> The higher the value - the higher the rate they were allowed to charge. 

> Naturally the RR's wanted to maximize their rates so they tried to 

> maximize the value of their property (buildings, rolling stock, 

> locomotives, ballast etc.)  The gov'ies naturally assumed that big 

> business would puff or inflate or cook their books to achieve their higher 

> desired number.  Therefore the gov'ies (in the opinion of RR management) 

> low balled the numbers provided to them.

>

> The result was tons of documentation and a centuries worth of hearings and 

> litigation between each RR and the ICC.  Great for accountants, lawyers 

> and railroad researchers of the 21st century.

>

> The records left behind begin in 1916 and one of the most valuable are the 

> Valuation studies conducted by independent teams of engineers and 

> accountants.  EVERY structure (including outhouses) was measured and 

> general plans and often side elevations were made.  Inventory of 

> everything, yes everything, were also included.  Usually a photograph was 

> included of every major structure and bridge etc.  In the Archives at 

> Roanoke we possess the entire collection of N&W studies, including 

> photographs from 1916.  The VGN records have most of the studies but NO 

> photos from these surveys.

>

> In order to keep an accurate and up to date accounting of the value of the 

> road, the AFE process was institued and a Valuation Dept was established 

> to keep track of every improvement and retirement of equipment.  The 

> manager of this department was an important figure.

>

> The AFE process could begin with field personnel submitting requests for 

> new or better equipment or services.  This paperwork flowed up through the 

> approval process and was either rejected or approved.  The project was 

> tracked and upon completion the Valuation department updated the NUMBER. 

> Often in the VGN's case, the researcher noticed that the project 

> completion date was often months before the AFE approval date.  Apparently 

> field personnel were yet to be convinced of the important of proper 

> paperwork.  Often there are small location drawings included and rarely 

> more detailed drawings.  One in awhile manufacturers documents are in the 

> file.

>

> Serendipity often ruled.  One AFE was to spend $50 for office equipment 

> while another was for millions to construct the Guyandotte River Branch. 

> Of the 5000 in NWHS possession their sources vary.  It appears that we 

> received them in 1000 (or so) lots.  Some from MOW offices, some from the 

> engineers office, some from the valuation dept. and other odd lots and 

> ends.  Some are chock full of stuff and some are single sheets of paper 

> with the AFE title and some signatures and dates.

>

> For the VGN enthusiast their value was immense because it is only recently 

> that other material and drawings have come to light.  Not too many years 

> ago this AFE collection was literally all that was in the public record. 

> As the NWHS Archives grew, both in collection size and stature (thanks Jim 

> G. and all others) it became the magnet for all large VGN collections. 

> Today Roanoke houses all the early Deepwater, Tidewater and VGN accounting 

> books, all VGN property records (all property sales agreements including 

> AJ Mullins), many locomotive maintinance records as well as a document 

> labled "RFP".

>

> These RFP's are some of the most valuable items in the VGN collection 

> because they begin in 1905 and are the Request for Proposal letters on 

> every major construction project.  Roadbed, bridges, stations and most 

> have the original drawings included.  (Some archive volunteers call this 

> material Contract Acceptance files).  Many have the losers bid  included 

> and there are many many manufactures drawings, specifications and promo 

> literature attached.  There are few documents relating to progress, 

> performance nor monies spent after the contract date in these files).

>

> Tracking the AFE's and RFP's allows the researcher to follow along on the 

> railroads issues and progress without even seeing the material.  The 

> Archives sells the VGN Reference CD - 

> http://www.nwhs.org/commissary/cd.html

> which includes all 9000 AFE's in a searchable spreadsheet, along with all 

> 800 or so RFP's in the collection (the RFP list was recently updated and 

> the CD will soon follow with that update).  Another tool is the Society's 

> searchable database available on line.

>

> Even better, come to the Archive work sessions and get yourself really 

> musty and dusty.  You will learn a lot.

>

> Tom Salmon

>

>

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