Eminent domain and state ownership of the rail r.o.w. would certainly be a more palatable option than outright subsidies to untrustworthy and self serving private corporations; especially "gifts" of capital, such as freight capacity expansion.

Inadequately maintained and capitalized r.o.w. is not just a problem for small, under utilized branches. It is pandemic and industry wide, affecting even the high and mighty.

Hundreds of millions in public money has already been spent; with many billions more proposed, by the likes of Norfolk Southern, CSX, UP; most of it for increased freight capacity in Chicago, Central Texas, the Eastern Seaboard, etc. Only a relatively small part of these proposals by the railroads include the carot stick of increased passenger options.

In return for public money, the public interest must be served! But what gaurantee is there.
With the bad passenger record of the CSX and UP, and with major railroads dumping small shippers and short hauls everywhere you turn, who should believe that any public benefit will accrue. Only company interests will be served!

Even if public or private partnerships pay for repairs on lines such as Coos Bay, who can gaurantee that CORP won't still - only run it while their interest is served (profits) and then turn their backs on their partners the minute the going gets rough. OH GEE! Already done that! Got that teashirt on already! And its still too damn tight! Same goes for the likes of Watco, UP, NS, CSX, etc.

At least with state owned equity in the r.o.w. (even if by eminent domain), the public then has much more leverage, and can even provide a rail infrastructure (for an adequate fee) to any and all who are willing to provide the needed services. Even those services that attract no vendors could of course still be provided directly by the state. Hence the full public interest is finally preserved in return for the public involvement in rail infrastructure that has always been there all along (since at least Abraham Lincoln anyhow).

OPB