Fifty years ago today, Amtrak operated its first passenger trains, a fact that President Biden celebrated a day early yesterday. Biden wants people to think that Amtrak is enough of a success that it deserves $80 billion in additional funding. But the reality is it is just a big loser.
Rail fans remember May 1, 1971, as the day America lost more than half of its passenger trains. On April 30, ten trains left the Midwest for the West Coast: the Empire Builder, Western Star, North Coast Limited, and Mainstreeter (all of which went to Seattle with sections to Portland), City of Portland, Portland Rose, City of San Francisco, San Francisco Chief, City of Los Angeles, and Super Chief. The next day, Amtrak killed all of them except the Empire Builder (and it killed the leg to Portland), Super Chief, and City of San Francisco (which was cut to three days a week). That’s a loss that’s hard to forgive.
Business analysts remember that the idea of a national passenger railroad was sold to Congress as a profitable enterprise. Rather than a normal government agency, Amtrak was created as a for-profit corporation with stockholders and, potentially, investors. The railroads were supposed to give it seed money based on the amount of money they claimed they had lost in the previous three years. After spending that to get started, as I noted six months ago, Amtrak was supposed to make money. Continue reading →
