[Congressional Record Volume 143, Number 159 (Wednesday, November 12, 1997)]
[Extensions of Remarks]
[Page E2341]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                    CONCERN ABOUT FEDERAL SUBSIDIES

                                 ______
                                 

                           HON. BOB SCHAFFER

                              of colorado

                    in the house of representatives

                      Wednesday, November 12, 1997

  Mr. BOB SCHAFFER of Colorado. Mr. Speaker, I rise today to share with 
you the thoughts of a fellow Coloradan who is concerned, like all of 
us, about Federal subsidies. As the proposal to privatize Amtrak 
proceeds, Mr. Scott Slusher of Colorado has composed sensible views on 
this subject which I now submit for the Record.

       Congress is currently working to reauthorize the Intermodal 
     Surface Transportation Efficiency Act which lays out the 
     federal government's plan for the nation's transportation 
     infrastructure. The legislation affects everything from 
     highways and interstates to airports and waterways. One of 
     the more contentious topics is the future of railroad policy 
     and more specifically, Amtrak and passenger rail service.
       On one side of the argument are train enthusiasts and 
     boosters of the rail service, and on the other side are 
     critics such as Sen. John McCain who argue it is time for the 
     federal government to get out of the railroad business.
       What is ignored is that the free market, individual 
     citizens, and American industry have already made their 
     choice. The truth is that the country's railroad industry can 
     be divided into two parts--one healthy and competitive, the 
     other perennially on the brink of bankruptcy. The privately 
     owned and operated freight rail companies continue to make a 
     substantial contribution to the nation's economy, and their 
     future as a mode of freight transportation is secure well 
     into the next century. On the other hand, passenger rail 
     service, though heavily subsidized by the government, 
     continues to lose passengers to faster and more cost-
     effective means of travel.
       The numbers themselves make this contrast clear (statistics 
     from 1993). Measured by the volume of freight transported, 
     railroads accounted for 38.1 percent of domestic transport 
     and were the number one method for transporting goods. Truck 
     accounted for 28.1 percent of goods transported and were the 
     second most common method of transporting freight. The 
     private rail freight companies are clearly an essential part 
     of our economy, and their continued success is a result of 
     adapting to the modern economy and providing a competitive 
     and cost effective service.
       Passenger rail service, however, has been less successful. 
     In 1993, intercity railways accounted for approximately 0.4 
     percent of the total number of passenger-miles traveled in 
     the United States. Comparatively, private automobiles on the 
     nation's highways and interstates accounted for 80.8 percent, 
     and domestic air travel was responsible for 17.4 percent. 
     Even intercity bus travel, with 1.1 percent, was more 
     successful at attracting passengers.
       The relative inability of Amtrak to attract passengers 
     comes in spite of the $18 billion in subsidies the federal 
     government has given the railroad since its creation in 1971. 
     While the initial plan was for Amtrak to be self-supporting 
     in two years, it has consistently lost money for the last 25, 
     and as it is currently managed, is not expected to ever be 
     profitable.
       While there was a time in which intercity railways carried 
     the bulk of people across the country, the advent of cheap, 
     fast airline travel, and the construction of the vast 
     interstate highway network, has given Americans many more 
     choices. They have responded by relying on the convenience of 
     their automobiles, or availing themselves of the ability to 
     travel from coast-to-coast in a few hours, as opposed to a 
     few days.
       The relative measure of passenger miles bears this fact 
     out, but it also points out an opportunity to strengthen the 
     vibrant portion of the railway industry. By allowing private 
     freight companies the freedom to compete without undue 
     government interference, and by encouraging innovation in the 
     railway freight industry, we can assure a place for America's 
     railroads in the 21st century.
       Clearly, passenger rail service will continue where it is 
     economically viable. Capital assets could be sold to private 
     companies all along the Northeast corridor between Boston and 
     Baltimore. The commuter railroads in major urban centers 
     would continue uninterrupted. However, spending scarce tax 
     dollars on a service that the traveling public has rejected 
     clearly must come to an end.

  Mr. Speaker, as we continue the debate on the Federal funding of 
Amtrak I ask my colleagues to keep these comments in mind as we search 
for solutions.

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