by Otto Vondrak
RussNelson wrote:Why shouldn't everything be affordable, Otto? Why not subsidize everything? Heck, why not make everything free?C'mon, I'm not trying to say that. Not everything is black and white. And I'm not trying to attack you, I just disagree with your idea.
No, my argument isn't simplistic. I want to know: from whence comes the right to force somebody to pay for something? I don't have that right, no collection of railroad.net members has that right, how does government suddenly gain that right?Simple. We gave the government the authority to collect taxes. I'm sure its in the Constitution in there somewhere. We give the government the authority to collect tax revenue, then we charge them with coming up with a budget that benefits as many people as possible. Those benefits include schools, roads, garbage pickup, parks, museums, and yes, public transit service. What we don't get to do is pick and choose where our tax contribution goes. But like I said, you can lobby your elected officials and let them know what is important to you.
Easy. They had a monopoly on transportation until private automobiles became practical
They did NOT have a monpoly on transportation. There were steam railroads, there were horse-drawn cabs, people could walk, or ride a horse.You're right, Russ, I should have been more specific. Trolleys and interurbans had a pretty good hold on the markets they served. For instance, if you wanted to get somewhere, and you didn't want to ride your horse or walk, you dug out a nickel and paid the trolley to take you there. The trolley ran down the side of the road, through the city streets, out accross a farmer's field, down the hill to another city and down their city streets. They ran places steam railroads did not, or chose not to. And the places where trolleys did compete with steam railroads, the zippy electric cars often gave them healthy competition. Why wait for the steam train that comes twice a day when I can take the trolley that runs every 15 minutes or so and gets me there quicker?
and roads were improved so people could get around. Say, who improved those roads, anyway? Ah yes. The state. And later on, the Federal government. Hrm. Using Russ' logic, "Why are they making me pay for a highway if I want to take the train instead?"
What gives us the right to force people to pay for things they won't willingly buy? How can this be moral when a certain group of people does it, when it's NOT moral for other groups of people to do it? Or is morality simply not a concern for you?I don't know why you're questioning my morality... or the morality of anyone who supports public transit... but like I said, you can't pick and choose where "your" tax dollars go. I mean, I guess you could stop paying taxes, but that will get you in trouble. I mean, really, I don't have a good answer for you- or at least an answer that satisfies your morality question. I don't want to pay for a new highway to the airport, but I'll gladly pay for a new rail link. But I don't get to make those decisions. Are my elected officials amoral because they didn't build the railroad I wanted?
Many of the trolleys went bankrupt due to effects of the Great Depression and the inability to adequately raise fares to meet inflation and reinvest in the physical plant. The raising of fares meant approval from the government (in this case, the New York State Public Services Commission, since the trolleys and interurbans were intrastate services).
That only explains how the government helped kill trolleys. That doesn't explain how trolleys were profitable in the first place.Well, trolleys were profitable on volume. If you runs more trolley cars, you can transport more people and collect more nickels. One would think, as a private enterprise, the trolley company could raise the fare as needed in order to meet rising operating costs. However, many companies were working under a franchise agreement. "You have the right to run your trolleys in the city streets as long as you promise to maintain a nickel fare in perpetuity," or something like that was how many of them read. It didn't seem like a problem at first... but later it came to haunt the operating companies. Though many trolley companies had other revenue streams- some were also electric utilities (think of the Rochester Railway & Light Co., for instance). Also, some trolley companies carried mail (government contract) and some carried express shipments (Adams Express or Railway Express). When costs were low, and volume was high- the trolley companies were profitable. When costs began to rise, and more people purchased automobiles, and with more improved roads, trolley companies were in trouble. Which is why many converted to bus operations in later years! No tracks to maintain, no overhead wire, no electricity to produce or purchase. I could go on and on about the trolleys, but I think we're getting far afield from OnTrack.
To bring it back to OnTrack, and to revive an old explanation about passenger trains in America... passenger trains don't make money. Sure, they made money in the early days of railroading when they were the successor to walking, horses, and wagons. Then, as costs began to rise, railroads were still making a healthy profit from freight. They also carried a lot of U.S. Mail (government contract) and express shipments (Adams or REA). If the passenger trains were losing a little money, they simply dipped into the freight profits. Traffic was still high, the losses from passenger trains were minimal, and the railroads were proud of their passenger services. Fast forward to the 1950s with the advent of the Interstate Highway System and commerical jet aviation, the costs to run passenger trains were skyrocketing. The government moved the mail contracts to the jets. REA went out of business. Now the railroads didn't have any additional revenue streams to support passenger operations, and they were losing millions a year. Passenger train service either ended, was taken over by Amtrak, or was subsidized and operated by local state agencies for commuter trains. Passenger trains were recognized as a public service that the private companies no longer could afford, so they were subsidized or abandoned. If you really really want to debate this point, please take it to the Amtrak Forum, this point comes up often.
Let's keep the discussion related to the NYSW and OnTrack, if we can.
But this thread is about OnTrack's dirty laundry, which includes subsidization.Okay, if you insist. >shrug< Can we discuss the OnTrack subsidy and not the broad topic of subsidy across the board? Does anyone even know what kinds of subsidy the service got besides the company getting a tax break?
-otto-
Last edited by Otto Vondrak on Mon Mar 24, 2008 2:49 pm, edited 1 time in total.
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