Are railroads still subsidized by the government?

Some short lines may get some sort of subsidy from the state they operate in, but the big class I Railroads is NO. However they may get some state or federal money for a particular project, such as moving their track so it goes around a city rather than going through it. or for enhancing commuter traffic flow.



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Railroad companies operate a pretty straightforward business. They charge companies for carrying cargo over their network of rails and railcars. Their rates and other aspects are overseen by the Surface Transportation Board.

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Federal Railroad Administration (FRA) | USAGov.

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Still, many skilled workers were leaving the cash-poor railroads to work in the booming armaments industry or to enlist in the war effort. By the end of 1917, it seemed that the existing railroad system was not up to the task of supporting the war effort and Wilson decided on nationalization.

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Railroads are USA's most profitable industry with a 50% profit margin. The US economy is colossal. In fact, it represents more than 20% (1/5th) of the entire global economy.

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Receiving millions of acres of public lands from Congress, the railroads were assured land on which to lay the tracks and land to sell, the proceeds of which helped companies finance the construction of their railroads.

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Funding for California high-speed rail has come from the legislative appropriation of state special funds and from federal competitive grants. No funding comes from traditional state sources, such as the gas taxes or general fund dollars.

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Misguided railroad regulation was a major factor behind the rail industry's decline. For example, the ICC set maximum and minimum rates for rail shipments, with rates often unrelated to costs or demand.

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Railroads Were at the Forefront of Political Corruption “Railroads need monopoly franchises and subsidies, and to get them, they are more than willing to bribe public officials,” White says. The Central Pacific Railroad, for example, spent $500,000 annually in thinly disguised bribes between 1875 and 1885.

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The investor owns 8.29% of the outstanding Canadian National Railway stock. The first Canadian National Railway trade was made in Q3 2002. Since then Bill Gates bought shares sixteen more times and sold shares on seven occasions. The stake costed the investor $5.31 Billion, netting the investor a gain of 12% so far.

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