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Isn't that because the freight companies are the ones that actually built, own, and operate the tracks? If Amtrak or another passenger company owned the tracks,
by daemin 9y ago
Isn't that because the freight companies are the ones that actually built, own, and operate the tracks? If Amtrak or another passenger company owned the tracks, their trains would get priority.
- pstuart 9y agoOn land gifted to them by the government.
- mseebach 9y agoGiven the key function railroads had in opening up the west, I think you'll struggle to argue that that was even close to a bad deal. Indeed, that, if anything, is exactly the kind of investments that a government should be making.
- dnautics 9y agonongovernment investments tend to be more sustainable, because they are driven by observed demand, instead of cronyism or politics. This was one of the few railways to survive the great railway crash, it's still operated today: https://en.wikipedia.org/wiki/Great_Northern_Railway_(U.S.) https://en.wikipedia.org/wiki/Great_Northern_Railway_(U.S.)
- jychang 9y ago> This was one of the few railways to survive the great railway crash The government well made its money back before the great railway crash. Let's say the Internet suffers a crash in a few decades. Few would argue that any previous investment into the Internet was not worth it.
- dnautics 9y agoyou're cherry picking an example that succeeded. Let's say DARPA's investment in ESP doesn't turn out in a few decades. Few would argue that any previous investment into ESP was not worth it. (disclaimer: I'm being paid on a stupid darpa grant now)
- icebraining 9y agoNon-governmental investment - except for the 3 million acres in Federal land grants.
- bufordsharkley 9y agoIf in the mid-19th century these were gifted to the railroad companies as 99 year leases, the value to the companies wouldn't have been very different, but we wouldn't be in thrall to them today.
- BRAlNlAC 9y agoand what if the railroads looked at the 99 year lease offer and said, "no thanks fam"? What if is such a pointless game to play.
- bufordsharkley 9y ago99 year leases have been very, very common throughout history. Simply doing a present value calculation yields the result that to an investor, a 99 year lease and a 999 year lease are approximately the same value today.
- jcranmer 9y agoThe land grants weren't for the land that the railroads ran on. It was for adjacent property that they could develop or sell. And not all the transcontinentals relied on land grants (e.g., Great Northern).
- jey 9y agoNo, Amtrak supposedly has priority by law: https://www.washingtonpost.com/news/powerpost/wp/2016/04/29/getting-there-on-time-who-goes-first-amtrak-or-a-freight-train-a-court-rules/?utm_term=.619c2ba90f5d https://www.washingtonpost.com/news/powerpost/wp/2016/04/29/...
- mseebach 9y agoYes, and that law didn't come out of the blue. More pertinently, a purpose built passenger rail line will have priority for passengers.
- dvanduzer 9y agoBased on this article, I'm under the impression that the law was overturned. The most recent article I can find about the status of adjudication suggests that Amtrak will have a very difficult time upholding that law: http://lyldenlawnews.com/2016/09/22/u-s-faces-a-choice-on-amtrak-case/ http://lyldenlawnews.com/2016/09/22/u-s-faces-a-choice-on-am...