Re: (erielack) RE: commuter rail-

[AL TILLOTSON <"CPLNAJT_@_njtransit.state.nj.us">]

New Jersey's operating subsidy payments to the EL (and other railroads) date
back to at least 1961, when over $2 million in subsidy payments were made to
the EL (that's about $11.5 million in "today" dollars).  The amounts increased
dramatically in the late 1960's, and capital equipment purchases started
thereafter too (like the U34's).  I recall EL officers quoted to the effect
that NJ commuter service was not a financial issue from the late 60's on.

One of Conrail's commuter fears was liability for labor protection.  The
legislation creating CR included substantial earnings guarantees to workers. 
There was a fund created by the Feds to pay for these guarantees, but it had a
fixed amount.

The concern was if commuter agencies pulled the plug on commuter trains,
commuter workers would be entitled to earnings guarantees from the CR
legislation, which would unexpectedly drain the fund set up by the Feds, and
place subsequent financial obligations directly in Conrail's lap.  And at that
time things were a little dicey for most commuter agencies, so plug pulling was
not beyond the realm of possibility.

AJT


>In reference to the comment below, back in 1971 when Amtrak took over, none of
>the current commuter rail operators existed in their current format.  No one
was
>giving out millions in 1971 to anyone for commuter operation, and there was no
>one champing at the bit to operate competing intercity service to Amtrak.  All
>of the private RRs wanted out of the commuter business, even more than they
>wanted out of the intercity business.  Losses on commuter services far
exceeded
>intercity losses for the railroads with big commuter operations.
>
>In 1971, when Amtrak came along, there were only a few locations in the US
where
>there was public funding for commuter rail.  NJ bought the U34CHs for EL, the
>GP40Ps for CNJ, and some minimal operating support.  New York state owned
LIRR,
>and provided capital and operating support.  Connecticut bought new MUs for
Penn
>Central for the Connecicut service, and New York state bought some for the
>Hudson/Harlem lines.  Everything else was privately owned, funded and
operated.
>
>What changed things was the creation of Conrail in 1976, and Conrail's desire
to
>get out of the commuter business at the same time as the energy crises, and
>increasing awareness of transportation issues.  People began to realize that
>they would lose all rail commuter service unless public authorities stepped in
>and began funding and/or directly operating commuter services.  So, mid-late
>70s/early 80s was the birth of the public commuter rail operators.  Prior to
>this, there was no issue of anyone wanting to operate longer-distance commuter
>operations that Amtrak would consider "competition".
	


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