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Re: Oldpoleburner Quote "CTC to rule in April on UP Donner Funding
Author: OldPoleBurner
Date: 03-23-2008 - 01:17
Please do not misunderstand -
Though I have been critical of the UP in the past when they have deserved it and will be in the future I'm sure, that was not my intent on this issue.
My point was that all railroads, like all businesses, truely have no means to measure success except the financial bottom line. But "Public Need" or "Social Good" cannot be measured financially. That is why they can not and will not do anything they don't absolutely have to do - including the common carrier haulage they were created for in the first place. Since most traffic just doesn't fit their modern one size fits all operating plans, they are discouraging it or outright refusing it. And besides, some loads just plain don't have as much profit margin as other loads.
Make no mistake - they are judged with increasing hostility by their own stockholders - especially the "Hedge Fund" managers, who have recently gained control of more that one railroad and thrown out the railroader CEO, who was dutifully funding his own capital expansions. By the way, CSX is next, and is already under assault by a hostile takeover.
Despite recent record return on investments, more and more quick returns are demanded - even at the expense of prudent spending for capital expansion, or even for vital maintenance (think C.O.R.P). Now in this environment, what railroad CEO can dare go for anything but the low hanging fruit, leaving the rest to rot, or go by truck.
Now this is clearly not in the public interest. So why should public money fund it? The American Ideal of a "Univeral Economy" accessable to all anywhere in America, will not survive this). That is why congress created common carrier corporations in the first place.
The target of my criticism was these hedge fund managers, who are banking on the public's newly found hope to relieve highway congestion by funding railroad expansion.
With your money, they (hedge funds) will get the tools to expand their businesses, and thus their profits; without paying a dime for it - and still they will continue to turn away all but the easiest loads and trash passenger schedules. They profit - but the investor (the state) gets nothing! They could never get such a sweet deal from the stock market without going to jail - but they sure are getting it from the statehouses.
While I am not opposed at all to public investment in railroads - I'm all for it in fact. But without rigid controls and the public's high expectations actually being enforced, it will only line the pockets of a narrow group on Wall Street and do nothing else.
The only real way I know to protect the public's interest, is for the public to share ownership and share control of what it shares investment in. Without that, I am unalterably opposed. If you pay for it, you own it - period!
OPB
Though I have been critical of the UP in the past when they have deserved it and will be in the future I'm sure, that was not my intent on this issue.
My point was that all railroads, like all businesses, truely have no means to measure success except the financial bottom line. But "Public Need" or "Social Good" cannot be measured financially. That is why they can not and will not do anything they don't absolutely have to do - including the common carrier haulage they were created for in the first place. Since most traffic just doesn't fit their modern one size fits all operating plans, they are discouraging it or outright refusing it. And besides, some loads just plain don't have as much profit margin as other loads.
Make no mistake - they are judged with increasing hostility by their own stockholders - especially the "Hedge Fund" managers, who have recently gained control of more that one railroad and thrown out the railroader CEO, who was dutifully funding his own capital expansions. By the way, CSX is next, and is already under assault by a hostile takeover.
Despite recent record return on investments, more and more quick returns are demanded - even at the expense of prudent spending for capital expansion, or even for vital maintenance (think C.O.R.P). Now in this environment, what railroad CEO can dare go for anything but the low hanging fruit, leaving the rest to rot, or go by truck.
Now this is clearly not in the public interest. So why should public money fund it? The American Ideal of a "Univeral Economy" accessable to all anywhere in America, will not survive this). That is why congress created common carrier corporations in the first place.
The target of my criticism was these hedge fund managers, who are banking on the public's newly found hope to relieve highway congestion by funding railroad expansion.
With your money, they (hedge funds) will get the tools to expand their businesses, and thus their profits; without paying a dime for it - and still they will continue to turn away all but the easiest loads and trash passenger schedules. They profit - but the investor (the state) gets nothing! They could never get such a sweet deal from the stock market without going to jail - but they sure are getting it from the statehouses.
While I am not opposed at all to public investment in railroads - I'm all for it in fact. But without rigid controls and the public's high expectations actually being enforced, it will only line the pockets of a narrow group on Wall Street and do nothing else.
The only real way I know to protect the public's interest, is for the public to share ownership and share control of what it shares investment in. Without that, I am unalterably opposed. If you pay for it, you own it - period!
OPB
