Not as simple as it may seem. The annual taxes on Penn Station equaled or exceeded the total revenue that passed across the ticket counters; the money to actually run the trains had to come out of freight revenue. This is dealt with in some posts going too far back to dig up, but briefly, the PRR sought some kind of tax abatement from the City of New York and was told that the property was taxed at the same rate as adjoining properties. Quite true, but when the PRR pointed out that those properties housed high-rise office buildings that generated enough income to pay the taxes, the City's response amounted to "well then, you know what you have to do." (This was reported in the New York Times at the time.). The result was Madison Square Garden and a high-rise office building. Also, the conventional wisdom at the time was that intercity passenger trains were soon to disappear; an ICC commissioner (name of Hosmer, as I recall) was on record around then as saying that if things continued as they were, passenger trains would disappear in 10 years, and had it not been for the Amtrak legislation of 1970 that's just what would have happened.