More on mass transit & some recent political history

WASHINGTON — Of all the presidential prospects, Sen. John McCain appears the least likely to lift Amtrak out of the long, waking nightmare it has endured for decades. Amtrak has no more dedicated foe in the Congress than McCain, R-Ariz.

The GOP’s likely nominee is also the least likely to care about a national transportation policy. The absence of such a plan is at the heart of why motorists and airlines — and now grocers — are gagging at the price of fuel these days. ...

...In the 1990s, Moynihan was not cash-conscious. Then a Democratic senator from New York and a power on the public works committee, he wanted the federal government to invest in high-speed intercity rail. President Bill Clinton’s minions smothered Moynihan’s hopes.

The nation’s governors also turned up their noses at almost all of the mass transit subsidies Moynihan offered them.

Clinton’s disinterest in rail and mass transit might be a reflection of Sen. Hillary Rodham Clinton’s views. She supports modest Amtrak subsidies like most Democrats, but she has invested little or no campaign time talking about it. Nor has Sen. Barack Obama, D-Ill., her rival for the presidential nomination.

To their credit, neither has voiced the righteous outrage at Amtrak support that McCain has at every opportunity. Someone should mention that 12 states that control 180 of the 270 electoral votes needed for election are highly dependent on Amtrak.

Under President Bush, Amtrak intercity service has limped along, deteriorating by the week. Service from Buffalo to Albany is now hampered by track work that can add up to an hour to the trip.

Five days a week, Amtrak travelers from Buffalo to Boston must take a bus on the Rensselaer-Boston leg because of track work. Thanks to the Clinton administration’s creation of regional freight rail monopolies that have no oversight.

After 16 months in office, congressional Democrats have finally produced a bill reauthorizing Amtrak. It offers only anemic operating cash to the line, and fails to extend the heavily traveled Northeast Corridor into Virginia and North Carolina, whose roads choke with traffic.

But the bill backed by Rep. Brian Higgins, D-Buffalo, offers $24 billion in tax-exempt bonds and 80 percent reimbursement to states for high-speed rail construction.

The business is there. Gas prices, clogged skyways and air travel hassles have driven more customers to Amtrak, hamstrung as it is. Business is up 11 percent nationally, and almost 20 percent on the rickety line from Buffalo Niagara to Manhattan.

What is needed is an unapologetic presidential commitment for a nationalized passenger system on the scale of the Interstate Highway program. President Dwight Eisenhower, who built it, was no communist.

For full article click here.

My Most Recent Local Activism Attempt--Reviving the Interurban

When thinking of ways to improve and sustain my community in the event of higher energy prices (which anyone reading this blog would most likely agree is a given), I wrote the article below in an attempt to create dialogue within the community and to spark ideas. There was a nice response to my article in the Sunday newspaper but it hasn't been published online yet. I will include it in another blog entry when it comes up.

I would've worded some things differently in hindsight but the issue was a burning one in my mind at the time so I just typed it out and hit send after a few revisions only. I guess my writing habits have worsened with the advent of discussion boards where one tends to "freewrite" whatever is in mind at the time of writing! Oh well...I threw it out there anyway!

Read original article here.

— Someone with experience recently told me that it takes about 50 years for an idea to be accepted by a community and become a reality. For example, the Hoosier Heartland idea was birthed in 1960. So I am beginning now. My idea involves transportation of the public kind — local mass transit.
Many years ago, in the early 1900s, I believe, there was local public transit here and elsewhere known as the “interurban.” It was an electrified light passenger rail car that traveled to and from surrounding points such as Kokomo, Peru, and Royal Center, etc. The interurban eventually lost out to the automobile. I would like to see it return and service the people all points along the ways of Winamac, Royal Center, Peru, Monticello, Delphi, Flora, Lafayette, Rochester and Kokomo.
Why? Because energy is not likely to be any cheaper in the future than it is today. The most recent credible reference to evidence my claim would be Nov. 19th’s front page of the Wall Street Journal and the most recent outlook report from the EIA. Some would argue that alternatives such as ethanol and biodiesel will take the place of oil in transportation. However, it’s not generally understood that any alternative will cost as much or more than oil. Even if we quit using foreign oil, we will still pay a price for any alternatives or domestic oil. At some point, it will take more energy to extract any oil, requiring two or more barrels of oil to produce one barrel of oil. This is based on “energy returned on energy invested.” When it costs more to get that oil out of the ground, refine it and transport it, the cost will be so high no matter where it comes from that the average person won’t be able to afford it and demand destruction will develop. Hence, the price will not be able to be logically lowered due to decreased demand because it will cost more to produce that one barrel of oil no matter what. There is also the potential of supply not being able to keep up with demand. Either way, the future price is going nowhere but up.
So, what advantages would an interurban passenger rail have for our area? I have three initial answers: College students, drunk drivers and low wage homeowners who don’t work in their hometowns.
Presently, this region is blessed with many schools of higher education including Ivy Tech, Indiana University and Purdue among others. Speaking from personal experience, many adult learners who attend these schools to improve their future have a difficult time providing their own reliable transportation. An interurban rail line would help them do this without worrying about a reliable vehicle and the cost of gas during their quest for a higher education. An interurban would also accommodate those younger students who live on campus to come and go to this area if they have no transportation of their own.
Also, many people who love the nightlife and like to come into town or drive out of town often need to have a designated driver. Sometimes it doesn’t happen. Those who decide to drive back while drinking pose a great risk to themselves and others as some do.
An interurban would allow enjoyment of food and commerce around the region that might otherwise be passed over and could reduce the risk to our well-being via drunk drivers on the road.
Most importantly, I think of low-income wage earners working outside of their counties. Not only is there a personal cost of transportation but also a cost of the viability of each county. If the cost of transportation doesn’t decrease (which I believe it won’t), these populations of people will end up moving closer to their employers and any home ownership they may now have in said county may bring a decrease in tax revenues from property taxes to local income taxes if they decide it’s not cost effective for them to remain here and travel every day. In simpler terms, our tax base could decrease. An interurban could allow this group to remain in the area, keeping revenues in place.
I’ve no knowledge of what must be done to make this idea a reality. I’ve nothing to help with the cost of the project, although I believe a regional/community investment such as this would pay for itself in time by keeping people here as well as alleviating hardship on the local subcultures mentioned above.
All I have are ideas. This would not only require the efforts of our local leaders, but they would have to work in conjunction with the other leaders in the surrounding communities also potentially serviced. It could be a joint regional effort. Too costly? What about interurban buses?
In 50 years, it might be more costly when people can’t afford to travel to their workplace or attend school for lack of cheap transportation. Hopefully, some of the leaders of the community are reading this and will understand my call for an “interurban revival.” Who will follow my cue?
Gwen Ashby is a resident of Logansport.

Yahoo Finance: The Railroad Industry-Warren Buffet's Latest Big Bet

Click here for full article.

So where could the value that Buffett so clearly sees be coming from? Two things spring immediately to mind:

1. The coverage maps of the three railroads are somewhat complimentary - BNI and UNP operating in different portions of the west, NSC operating in the east. A merger could create efficiencies that increase the value of the combined companies that do not currently exist.
2. With the passing of "Peak Oil" and higher gas prices, railroads will increase in value as they are the most efficient method to move cargo across the country.

Regardless of what Buffett sees in the railroads, this is the most significant "loading up" we've seen from them in quite some time. It's been years, almost decades, since they made their initial stakes in American Express, Coca-Cola, Gillette (since bought by PG), and Wells Fargo, and you may have missed that boat. However, right now it seems that railroads are his next great investment and those who knew about that initial Form 4 filing have entered on the ground floor with him.