Some of you who are really in the know on this subject please comment on what chance this legislation has and what effect it will have if passed. Most of what I have read blames the per-1980 regulation for the near bankrupcy of the industry back then.
Thanks,
George
Hi George,
Indeed the regulation of the industry prior to the Staggers Act stifled many railroads by not allowing them more freedom at setting their own freight rates and abandoning surplus lines (i.e., like with the granger roads and PC whom had hundreds of miles of redudant trackage).
In any event, there is a good discussion ongoing here where you can learn a lot more about this bill and its chances of making it through. From what I have read and heard, at present, the bill doesn’t seem to have gained much headway/backing and hopefully it will remain that way as if passed we could very likely find ourselves repeating the 1970s all over again… [sigh]
George -
You have asked a huge question. There are currently several different regulatory and legislative matters being pushed at the moment which may cause various regulatory distress to the railroads. Which specific legislation are you referring to?
LC
Well, I know that there is a bill out there sponsored by Obestar (D Minn)that would reregulate frieght rates. I think it is being pushed by the American Chemistry Council and others. Railway Age had talked about this one. Also, I think there is a bill out there to force the railroads to open up their tracks to shippers running their own trains. This is what I am talking about.
George
George,
My apologies, I should have been more clear but indeed, the Obestar bill is the one I was referring to. So far it doesn’t seem to have gained much headway and hopefully it will remain that way.