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| Re: ''It always stinks in Elizabeth! What is that smell?'' (Friday's Trip & Pics) (495550) | |||
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Re: ''It always stinks in Elizabeth! What is that smell?'' (Friday's Trip & Pics) |
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Posted by kp5308 on Wed Sep 26 13:13:13 2007, in response to Re: ''It always stinks in Elizabeth! What is that smell?'' (Friday's Trip & Pics), posted by Olog-hai on Wed Sep 26 09:08:33 2007. The Staggers Act was written in large part to deregulate the pricing structure railroads were forced to use to try & sell transportation. Back then, as a whole, the freight railroads were returning less than 2% on investment, consequently not attracting much private capital for improvements. The pricing flexibility after the bill was passed basically saved the freight railroads from becoming nationalized, which was a real possiblity back then. The idea was not to raise speeds or make improvements to passenger service, but to try & give the system a chance to save itself as a private, for-profit industry.As far as the merger movement, Staggers is somewhat resposible, in that the improving financial health of the industry attracted capital for these acquisitions. But, the ultimate decision rests w the ICC/STB. Just ask John Reed, Santa Fe chairman when the ICC shot down the SPSF merger. I really don't think the Feds actually knew what they were putting into motion when they passed that bill. It was named for a retiring Congressman, Harley Staggers, as a farewell gesture. He had nothing to do with the bill! |
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