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Re: Another Assault on the Common Carrier Status of Railroads
Author: Margaret (SP fan)
Date: 10-21-2014 - 16:58
mook --
Thank you for the very interesting and informative links.
Railroads should be no more or less regulated than any other
industry.
Because of the insane "race to the bottom" economically
under our form of capitalism, the railroads -- and every other
industry -- have been doing almost nothing but cutting as many
expenses as possible -- for many decades. Be "lean and mean"
has been the mantra -- but that did not permit any growth, and
led to corporations being just plain mean -- and, IMO, stupid.
I completely agree with David Smith: American railroads desperately
need to lay more track. They are trying to stuff (probably) four
tracks worth of traffic onto only one, or maybe, two tracks.
That simply will not work and does not work. Just look at
the BNSF's and NS's problems for evidence that I am right about
this.
Railroads also need to hire a lot more operating employees.
The numbers of people hired is deceptive, as what really matters
is how many TY&E employees that are still working one year later.
I read somewhere that railroads are lucky if 10% of those hired
are still working after one year has passed.
Now, when there is quite a bit of growth, the railroads cannot
"haul *all* goods ' and passengers proffered" because they no
longer have the track capacity or equipment or employees --
because they cut too much.
Railroading is a very labor-intensive business and requires a lot
of track capacity when done well, which it cannot do now..
The railroads have dug themselves into a huge hole, and digging
out will take a gigantic amount of money and a lot of time.
Railroads should never have had to pay taxes on unused track.
Never. They reacted by pulling up that then-unused rail, but
that, along with a shortage of operating employees and (I think)
locomotives and definitely cars, prevented them from handling
any future growth in a timely manner.
Part of the blame for this can be laid directly at the feet of Wall Street,
which has, for quite some time, adamantly refused to fund any long-term
projects. Wall Street's entire focus is on the next quarter's profits.
This shortsighted view totally prevents corporations from engaging
in really good long-term planning. But railroads, as well as all other
industries, must do this in order to anticipate any future growth or
shrinkage, and deal with it.
Thank you for the very interesting and informative links.
Railroads should be no more or less regulated than any other
industry.
Because of the insane "race to the bottom" economically
under our form of capitalism, the railroads -- and every other
industry -- have been doing almost nothing but cutting as many
expenses as possible -- for many decades. Be "lean and mean"
has been the mantra -- but that did not permit any growth, and
led to corporations being just plain mean -- and, IMO, stupid.
I completely agree with David Smith: American railroads desperately
need to lay more track. They are trying to stuff (probably) four
tracks worth of traffic onto only one, or maybe, two tracks.
That simply will not work and does not work. Just look at
the BNSF's and NS's problems for evidence that I am right about
this.
Railroads also need to hire a lot more operating employees.
The numbers of people hired is deceptive, as what really matters
is how many TY&E employees that are still working one year later.
I read somewhere that railroads are lucky if 10% of those hired
are still working after one year has passed.
Now, when there is quite a bit of growth, the railroads cannot
"haul *all* goods ' and passengers proffered" because they no
longer have the track capacity or equipment or employees --
because they cut too much.
Railroading is a very labor-intensive business and requires a lot
of track capacity when done well, which it cannot do now..
The railroads have dug themselves into a huge hole, and digging
out will take a gigantic amount of money and a lot of time.
Railroads should never have had to pay taxes on unused track.
Never. They reacted by pulling up that then-unused rail, but
that, along with a shortage of operating employees and (I think)
locomotives and definitely cars, prevented them from handling
any future growth in a timely manner.
Part of the blame for this can be laid directly at the feet of Wall Street,
which has, for quite some time, adamantly refused to fund any long-term
projects. Wall Street's entire focus is on the next quarter's profits.
This shortsighted view totally prevents corporations from engaging
in really good long-term planning. But railroads, as well as all other
industries, must do this in order to anticipate any future growth or
shrinkage, and deal with it.
