RAIL REORGANIZATION: THE PANACEA THAT PASSED

Reorganization under bankruptcy laws, which in the past usually solved a railroad problem for at least a generation, today does not seem to solve anything. Bankruptcy and reorganization offers no solution for a carrier that cannot cover operating costs. The rail industry as a whole earned only one and one-half percent on its invested capital, much of which is sunk. But capital is mobile, and that which can flow out from the railroad industry will do so. Many railroads have moved to an industries' setup. A severe disinvestment in the railroad industry seems inevitable. Perhaps one-half or two-thirds of existing trackage will be scrapped. The process should have a stopping point. As marginal lines disappear and total investment is reduced, competition among railroads will diminish, and the stronger survivors will have a greater volume of traffic to route over their main lines. If economic factors are allowed to follow their course, we should soon see a leaner but healthier rail system.

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  • Corporate Authors:

    Kalmbach Publishing Company

    21027 Crossroads Circle
    P.O. Box 1612
    Waukesha, WI  USA  53187-1612
  • Authors:
    • Shaw, R B
  • Publication Date: 1973-2

Media Info

  • Features: Photos; Tables;
  • Pagination: p. 26-28
  • Serial:

Subject/Index Terms

Filing Info

  • Accession Number: 00039901
  • Record Type: Publication
  • Source Agency: Trains
  • Files: TRIS
  • Created Date: Apr 2 1974 12:00AM