The ICC abandonment procedure relies on outdated precedents which treat applicant railroads unfairly. The Commission does not recognize all costs associated with continued operation of the line proposed for abandonment. There is no uniform accounting system for determining branch line costs and evaluations are based on costs determined for an abandonment decided in 1939. The ICC breakeven criterion of 34 carloads per mile, determined from 39 abandonments decided during 1969-1970, is not representative of all applications. Consideration is not given to return on net salvage value as an avoidable cost and to depreciation of track structures as a cost. It is recommended that in responding to the Railroad Revitalization and Regulatory Reform Act of 1976, the ICC establish a uniform accounting system for branch line analysis, develop a fair breakeven standard, and provide for return on net salvage value and track depreciation in decision making.

  • Corporate Authors:

    U.S. General Accounting Office

    441 G Street, NW
    Washington, DC  United States  20548
  • Publication Date: 1976-7-23

Media Info

  • Features: References;
  • Pagination: 11 p.

Subject/Index Terms

Filing Info

  • Accession Number: 00141427
  • Record Type: Publication
  • Report/Paper Numbers: CED-76-125
  • Files: TRIS
  • Created Date: Nov 3 1976 12:00AM