Hello all, after a 2 year sojourn into building an HO Modular Layout I am back to working on my home N Scale layout. The PRR Allegheny Division is giving way to the proto-freelanced Grand Trunk Southern which runs from the Buffalo Gateway to New York City allowing CN access to eastern U.S. markets in the same manner as GTW allowed access to Chicago. In doing research for the railroad I wondered how prototypical it would be to have CN power running south on the GTS and remembered from my railfan experiences in the late 60's early 70's seeing very little Canadian power south of the border other than as transfers at the gateways. Similarly, I knew that roads like Wabash and Pere Marquette (C&O) had dedicated "Canadian" units. My question was how prototypical would it be if I ran CN units to my main yard which is loosely based on Salamanca in the B&O years.
Research uncovered something known as "The Wilgus Agreement". Negotiated in 1922 by William J. Wilgus who had been Chief Engineer of the NYC at the turn of the century and responsible for such engineering feats as Grand Central Terminal and the electrification under the Hudson and the Detroit Tunnels under the St. Clair River. Wilgus moved on to handle the rail network in France during WW1 and then went into consulting. It was as a consultant that he negotiated an agreement between the Canadian and U.S. Governments in 1922 that allowed locomotives to enter the other country and stay for a period of 72 hours without the payment of any duties or taxes. What this meant for CN was that GTW locos on passenger trains such as The Maple Leaf could run from Chicago to Toronto right through as long as they returned to the U.S. within 72 hours of their departure. Similarly, CN locomotives could run through from Toronto to Chicago as long as they were turned around quickly and left the U.S. within the 72 hour period.
I also know from first hand experience that both CN and CP extensively used leased power from lines such as B&O/C&O, IC, Bessemer, B&M, etc. in the period 1970-1974. I'm unclear how that worked.
Today, run through power is common and we often see units from BNSF, WC, SOO Line, and others such as NS and UP up here in Ontario. I tried to research this as well by looking at sites such as the FRA in the U.S. and Canada Customs. I was able to find a Remission Order signed here in Canada in November 1974 that appears to excuse duty or taxes on railroad locomotives as long as they are used in direct service between points in Canada and the U.S. This meant that they could not be diverted and used on a train between two Canadian points, however, it would also appear to negate the 72 hour deadline. A review of the provisions of NAFTA signed in 1989 would appear to reinforce this as being the current status quo. If that were true then CN units operating on U.S. Lines must be dedicated U.S. units and the same would apply to CP units working on the old D&H.
I would be interested if anyone else had thought about this and had additional information they could share on how this system worked both in the period around 1970 and today. I am also interested in whether The Wilgus Agreement is still in effect or whether it has been superceded.
John
