Posted on 06/24/2002 11:40:18 AM PDT by gjpino
Bush Administration to Help Amtrak, Torricelli Says
Sen. Robert Torricelli, D-N.J., said Monday afternoon Transportation Secretary Norman Mineta has assured him the Bush administration will help resolve Amtrak's financial crisis and prevent a shutdown, the Associated Press reported.
An Amtrak spokesman told Transport Topics the nation's passenger railroad derives more than $140 million a year from hauling mail and express freight. While there is some competition between Amtrak and trucks, there are also business partnerships between the railroad and most major less-than-truckload carriers.
In case of a shutdown, that freight would probably move to the highways, along with rail passengers, who would likely turn to their cars for transportation.
Mineta has called Amtrak’s board of directors to an emergency meeting for Monday in response to congressional warnings that inaction in the face of a shutdown threat could throw the New York region into chaos, AP said.
Amtrak President David Gunn recently said he would begin a shutdown of the railroad by the middle of this week if it could not obtain $200 million in financing.
Mineta said one option would be an emergency appropriation of $200 million from Congress, which controls the federal purse strings.
Sens. Charles Schumer of New York and Torricelli and Jon Corzine of New Jersey, all Democrats, said Sunday that the crisis could be easily averted, AP said.
At a news conference in New York’s Pennsylvania Station, Torricelli said the problem threatens the economic infrastructure.
Mineta has also asked Congress to be prepared to take action on financing options if necessary for Amtrak.
Speaking on a television program, House Speaker Dennis Hastert did not say what Congress might do, but did criticize Amtrak for failing to correct money-losing policies, AP said.
Amtrak has not been able to obtain credit from its banks because of its poor financial condition, Reuters said.
By Transport Topics
I like Denny Hastert for the most part, but this statement is complete and utter bullship. The reason Amtrak can't end money-losing ventures is because Congress won't let them. Just try ending route X through Senator Blowhard's state or Congressman Hot Air's district, and see what happens.
Amtrak is mandated by Congress to maintain money-losing routes.
Oh, yeah, they were off the last couple of days--that's why.
That's ONE AIRLINE...United....1.8 BILLION....
After all, Conservatives are in the bag. Where else can they go? </pissed off sarcasm>
No, I understand that the Northeast corridor is the only self sustaining Amtrak route. It's the rest of the country that's the problem.
Seems to me that with the run-up of airline pricing, and the mandatory security and airport fees, that Amtrak has a pricing opportunity that it could take advantage of to get into the black.
Plus, until pilots are armed, lots of folks won't consider flying, another Amtrak opportunity!
I don't think this is a case of liberal vs. conservative. It's a matter of economic survival for the already hard hit tri-state area. Amtrak owns all tracks and switches going into Penn Station. In addition to shutting down Amtrak's own trains they would also be shutting down seven New Jersey Transit commuter lines from throughout the state as well as the Long Island Railroad lines. This would affect thousands of commuters.
And on Wednesday, to counter critics who say the house pet insurance act (HPIA) will be too expensive, Secretary of Health and Human Services Tommy Thompson will announce a mandatory exercise program for all pets.
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