Re: The Staggers Act Is 30 Years Old
Author: OldPoleBurner
Date: 10-12-2010 - 10:51

There is darn good reason why Mr Hamburger does not identify who he really is; as the A.A.R., under his tenure, has become well known as one of the most exceptionally one sided, provincial, and narrow-minded of industrial organizations there ever was. So much so, that it actually does a major dis-service to the industry - over the long run. Thus the effort to pull back on Staggers a bit, despite the now ineffective protests of the A.A.R.

Granted, the Staggers act did much good in reversing the damage done by years of over zealous and discriminatory federal regulation; but it also went way too far in relieving the railroads of their common carrier obligations. Now we have the railroad industry cherry picking only the low hanging fruit and leaving the rest to rot.

With much of the country now having no access to competitive rail service, the whole American ideal of a universal interstate commerce has been thoroughly thrashed. That was in fact a critically important goal of the writers of the Constitution in the first place. As it was, the rail industry earned its profits and its government protected existence, by serving that goal; and thus the WHOLE country benefited.

But now, only those regions that still have rail competition can successfully compete with other areas. Those in areas without it, have only the choice of paying much higher rail rates, or using trucks - both of which leave them at a competitive disadvantage. Enough so that many regional areas, especially rural areas, are now chronically depressed. They are unable to attract any new big industry, and what is there already, is slowly dying or moving away.

But of most concern to any real rail advocate, must be the overall health and preeminence of the rail industry as a whole, which has been profoundly trashed by the unintended effects of Staggers. As much as the whole country desperately needs a better way than trucking to move goods, the rail industry is now but a mere shadow of its former self. It is as it now stands, unable to do the job.

It now cannot attract enough private capital - thus the begging at the public trough by Mr Hamberger 'n company (while still flatly refusing any attached strings). Ninety percent of the growth in the transport market since Staggers, has gone to trucking. The industry has become totally irrelevant to most Americans; many of whom think railroads have all but shutdown.

The Staggers era has in truth, been an era of massive rail industry retrenchment - not the panacea touted by the supporters of Staggers. Only the very short term stockholder bottom line has been served. Indeed, the scale of retrenchment has been breathtaking to say the least! Maybe one could even say - staggering!

With rails natural efficiencies, a truly viable rail industry would have taken the lions share of that market growth - not just 10% of it. Universal rail competition would have sharpened the industry, and long haul trucking would instead be a small fraction of the market. It would indeed have been a growth business all along; but only became so very recently, by default as trucking faltered - and trucking faltered only because of its inherent inefficiencies.

And before anyone throws up Mr Warren Buffet's recent investments in rail - realize the Mr. Buffet is a very shrewd businessman. He is buying into the industry at its very lowest ebb; and even so, only the best run rail company at that. He has expressly disavowed any interest in any of the others.

No - I do not want to return to the pre-staggers era of draconian and discriminatory federal regulations. But properly crafted regulation, re-instituting common carriage rules, and a universally competitive rail environment; would be grandly beneficial to the industry as a whole and to the country.

Mr Hamberger, like most "Harvard Business" Grads, needs to get a vision of the bigger picture - and get their collective hands out of the proverbial cookie jar - with just one cookie at a time - the rest will come in due time.

OPB



Subject Written By Date/Time (PST)
  The Staggers Act Is 30 Years Old Marty Bernard 10-11-2010 - 19:56
  Re: The Staggers Act Is 30 Years Old I wish I really could use my real nam 10-11-2010 - 22:02
  Re: The Staggers Act Is 30 Years Old Richard Elgenson 10-11-2010 - 22:31
  Re: The Staggers Act Is 30 Years Old Bill Bowling 10-12-2010 - 10:09
  Re: The Staggers Act Is 30 Years Old OldPoleBurner 10-12-2010 - 10:51
  Re: The Staggers Act Is 30 Years Old J 10-12-2010 - 14:13
  Re: Buffet's slice of the pie I wish I really could use my real nam 10-12-2010 - 15:36
  Re: The Staggers Act Is 30 Years Old R Ruiz 10-12-2010 - 14:37
  Re: The Staggers Act Is 30 Years Old mook 10-12-2010 - 17:47
  Re: loose cars Severe Duty 10-12-2010 - 22:13
  Re: loose cars Curtis R. Milburn 10-12-2010 - 22:33
  Re: loose cars George Andrews 10-12-2010 - 22:46
  Re: loose cars J 10-13-2010 - 04:44


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