Circumstances that kept the RGZ out of Amtrak for so long

How did Rio Grande operate the RGZ for so long after the formation of Amtrak, only to finally bow out in 1983? What were the cicumstances involved?

-otto-

Initially, D&RGW didn't want to give into Amtrak's demands on running a daily train, on Amtrak's schedule, with priority over freight, on the (mostly) single track D&RGW, while the somewhat parallel UP multi-track mainline got away with NO Amtrak service whatsoever. Also, the cost of joining Amtrak in the first place was prohibitive to the cash-strapped road. So, D&RGW continued to run what was, arguably, the classiest tri-weekly service in the country (while it lasted), with more dome-seats per passenger than any train that ever existed. By 1983, the cost of operating the RGZ was becoming a burden, and the equipment was wearing out (it was 35 years old by then). Freight traffic was down, anyway. So, the little railroad finally succumbed and joined Amtrak. I don't recall the financial details in 1983; but, I believe, the cost of joining was probably nothing more than the transfer of the rolling stock to Amtrak (which, in turn, sold most of it, since they were now well into the Superliner era).

Adding to Mr. Laubenheimer's thoughtful response, we should note the measurement period for determining the Amtrak entry fee of 100% fully allocated loss as determined by the ICC, or 200% of the avoidable loss as determined by Arthur Andersen in their capacity as consultants to the Incorporators, into Amtrak was Calendar Year 1969. During 1970, the California Zephyr became tri-weekly, presumably reducing losses by either forumla. Therefore, the DRGW, would not have received the same "bang for the buck" as would a road that had not reduced service to such an extent between the measurement period and A-Day.

I believe if one takes a hard look at the experience of other "holdouts', such as SRY and CRIP, one would find a parallel situation.

Gil,

Didn't CRI&P's failure to join Amtrak become a non-issue after their liquidation to SP?

John

GBN,

If the losses were taken from 1969 books, hadn't the stagflation of the 70s made that number rather attractive, thus a good call to "join now?"

John

Killing 4/7ths of your passenger train miles during an interim between measurement and enactment will override any inflation considerations.