Wasn't there some late seventies legislation that eliminated many of the government regulations that required railroads to maintain unprofitable spur lines? I did advertising for the Association of American Railroads in the early 1980s. I recall doing a series of ads that were intended to combat the coal companies efforts to repeal legislation that had removed restrictions from railroad operations. I remember one ad that featured a quote from Thomas Jefferson. It was something like, "Business will manage best when left to manage for itself." Those might not be Tom's exact words, but, hey, it was twenty years ago or more.
Paul
On Feb 14, 2004, at 5:17 PM, [EMAIL PROTECTED] wrote:


Frank,
The biggest lament of the US railroad industry in the '60's and '70's was the competition from trucks. They were faster, more flexible, and used cheaper labor (independent truckers) than the railroads. They didn't pay to maintain a system of roadbed/rails, and government regulations didn't force them to keep that 3 mile spur line to Ma & Pa's grain elevator open for that one carload of revenue traffic they got per year.
The deck was stacked in favor of trucks from the beginning!
Regards, Bob S.


Frank writes:

Now, your line about truckers "stealing business" from trains got me to
thinking, and it brings me back to conspiracy theories (which were mentioned
by Tom earlier) of the auto industry killing competing industries:


One of the reasons that trucking has stolen business from trains is the
current model of low inventory factories, made possible by "just in time
delivery". Trains are great at moving large volumes cheaply. But they
can't compete with trucks when a factory says, "we want a certain number of
widgets (but not too many) delivered between 2 and 3pm on Tuesday". In
essence, the truck becomes the warehouse. Warehousing and storage costs are
kept down, and more factory space can be devoted to actual manufacturing.


IIRC, this low inventory "just in time delivery" model was developed or at
least championed by the auto manufacturers. But, who makes trucks? Could
it be the auto manufacturers? Yeah, I know, GM makes locomotives (gee, they
never made steam locomotives though - hmmmm! <g>), but does
Ford or Chrysler
(sorry, Daimler-Chrylser)?


It's all starting to make sense now...


Reply via email to