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Re: (erielack) Re: commuter railroads
- Subject: Re: (erielack) Re: commuter railroads
- From: ELRRco_@_aol.com
- Date: Sun, 20 Aug 2006 08:50:08 EDT
Dear All,
If the Erie Lackawanna and others either received a subsidy or been placed
on a level playing field with tax abatements or another "carrot" to compensate
for the massive investment and support of commuter and passenger rail
competitors, then yes, they would have been a very force in the nation's
transportation system.
Rail gets the short end of the stick money-wise at the government level
because it does very little politically for those who do appropriations
(Congress, State Legislatures, etc.), and can also generate trouble with NIMBY/BNANAs
that can be avoided. Its much easier to strike a chord in a voter's mind when
he is driving to work over an expansive highway to vote for Senator Big
Spender on Tuesday, than it is for the idea to pop into that same voter's mind
while reading the Wall Street Journal in a Comet I coach passing through the
Meadowlands.
But that all is beside the point that railroads could have done and do more
to support passenger and commuter services rather than simply complaining
about how unjust the government financing of the Interstates and other highways
was--and is. The issue goes back to the pre-Interstate Commerce Act times,
when railroads had just as powerful a lobby as firms like ExxonMobil do today.
Having a strong lobby permitted them to grow and for the most part thrive
without too much meddling. However, remember that railroads welcomed the ICC and
its rate-setting powers because they felt it would end the ruinous
competition that resulted from having multiple participants in most markets of
consequence and the collapse of the rate pools that would appear from time-to-time.
With this thought, the industry quickly became fat and sassy not only with
operating styles and customer service, but also with lobbying efforts--meaning
that it was easy for state governments and the Federal Government to support
and protect the "infant industries" of trucking and air carriers, both of
which helped directly and indirectly siphon off passengers and produce some of
the problems for passenger and commuter train services.
Would a strong rail lobby permitted New Jersey's well-known tax policy of
the bygone era that made important rail assets such as the Hoboken Terminal, and
the Erie Lackawanna's lines in the state subject to taxes unheard of
anywhere else? The correct answer is a resounding NO, and if one questions that, you
can tell by the present day efforts in many NJ communities to continue
property tax reassessments which soak homeowners and only happen because of a very
weak 'lobby' among voters who could prevent this.
Many railroads also did not make much of an effort to provide high levels of
flexible and innovative service on the passenger and commuter services, that
would be aimed at not only eating into the competitor's markets, but
eviscerating their market share. After all, what does it matter if the airport,
interstate, or other limited-access highway is funded by the state if the
truckers, airlines, and bus companies are out of business--and the automobile is a a
relatively niche product? This is a tried-and-true business concept that
happened in pre-ICC days, and happens in any new industry. While you might argue
that railroading was a mature business by the time things became dire for
passenger and commuter trains, the industry should have reverted to greater
investments in all aspects of the service, but also find every means of
adjusting each aspect of the service with the idea of becoming #1 or #2 in each
market served--and making the service of such a high level, that profitable rates
will be maintained. Yes, its difficult for organizations to justify this to
shareholders, but the good ones like Microsoft and Google will do it, and the
results will be borne out in the returns generated, corresponding share price
increases, and longevity of the firms.
And finally, It is very difficult for me to understand that why we are
lovers of railroads (and in some cases leaders of them) would want to wait for
governmental support of our favored mode of transportation in the first place. I
for one do not believe that whether we have a train that goes to point X
should only happen if we can convince the staff of Senator Big Spender that its a
politically viable option for him to support a study of it, and maybe years
from now, serious consideration. Strong, private, innovative, and operations
produces great rail service--just remember how the Southern gave the Green
Light to innovation--and great, high-level rail service makes money, whether it
is carrying passengers or freight.
Phil
_ELRRco_@_AOL.com_ (mailto:ELRRco@AOL.com)
- - Had Erie Lackawanna and the others been treated equally, re: receiving
subsidies for commuter and intercity passenger traffic, would they be a
"force"
in our national transportation system?
2- Since our taxes support all, but to a very small degree, subsidizing the
rails, can anyone honestly answer why rail transportation (both freight and
passenger service) gets the short end of the stick?
Again, SGL, you're not off topic, actually, you're right on. And you are
correct when you say that passenger service never made a profit. Maybe it
did in
some places, maybe not. Overall, the consensus is that it didn't.
The movement of people back then was considered to be a necessity and it
was
indeed. Today, our federal and state governments do not consider the
movement of people to be a necessity because people have independent ways of
travelling, i.e., cars.
Once the gas prices continue to rise to European levels and Americans can't
afford to fuel their gas guzzling SUVs and understand that the money we
spend
on our gas guzzlers only continues to finance those who bombed my town on
September 11, 2001, maybe then, we'll see those who wish to be elected
understand that we can rely upon ourselves to do what our forefathers did,
in
effect, take care of us on our own. We can.
Those who really want to see this country move forward will invest the
bucks
in our infrastructure, including what was Erie Lackawanna and the others
throughout the country.
Yes, T, it can be done but it won't until we tell those running for
election
that this is priority.
Rick
The Erie Lackawanna Mailing List
Sponsored by the ELH&TS
http://www.elhts.org
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