Download Locomotives in Detail 4: Maunsell 4-6-0 King Arthur Class: Maunsell 4-6-0 King Arthur Class (v. 4) PDF, azw (Kindle), ePub
Format: PDF / Kindle / ePub
Size: 7.08 MB
Downloadable formats: PDF
All of this came at a time when real competition was emerging that would have broken monopoly in the marketplace - automobiles, trucks and airplanes. ^ ' \^ Regulation destroyed flexibility and initiative *~^- • 6% requirement meant railroads now could no longer lower rates without permission either u -fr a f A * 1 ^ _ couldn't respond to competition from trucks, busses, airplanes. ^ • Posted rates (that were public knowledge - no competitive edge) took 1 months to adjust - railroads couldn't respond quickly to market fluctuations • Railroad management substituted goal of decreasing costs for traditional goal of increased traffic/profit — shift in management culture Effective result — government "management' substituted for private control • Unable to replace "all the traffic will bear'* rate setting philosophy with something better • ICC (government) incapable of long-range planning, responding to competition " w^ " -**T Uc^L^ - .*~~~5^ y^H ^--u^ y^ ekf****^ l^^LU d*-u~J^ ' "-^ ^^"^ 1 940 Transportation Act of 1 940 • Extended jurisdiction to all modes of transportation (with glaring exceptions) • Released railroads from charging lower rates for mail/government transportation (land grants provision) ,^-j ,, ^rp^^h-^/ ^^ v+rjfj ********* The Years of Decline. r. 1945-1961 ^ ^ ^ -^- ef "gfj™ iJfc ^ _^_. ^^^ - **. m ***** W<" *?^ 1946 After record earnings and traffic levels during World War II, decline continues • Management attitude that was unable to adapt • ICC policy did not allow railroads to compete with other modes (6% issue) • Indirect subsidies to other transportation modes (highway construction, etc.) 1 947 Reed-Bulwinkle Act • Legalized rate bureaus, subject to ICC approval (triumph of regulated monopoly) • Effect was to stifle new technology - intermodal 1954 Interstate Commerce Commission authorizes railroads to carry truck trailers (piggyback service) - several railroads join trucking industry in fighting decision - stunts development for many years 1 954 Weeks Committee finds railroads are over-regulated and recommends changes Several railroad presidents warn that, unless changes are made, industry will not survive 1 956 Interstate Defense Highway System Act passed 1 957 New York Ontario & Western declares bankruptcy - liquidated instead of reorganized, the first major railroad to be so eliminated zM*~*~*i ***• Railroads carry less than one-half of inter-city freight shipments for 'CTL^ * -I^XU^ the first time for t*-*v~c~ **-*-! y«A*ik> 1 958 Transportation Act of 1 958 • Allowed for quicker discontinuance of passenger service on short notice and placed burden of proof on public agencies k*^ Taxes paid to Washington D.