Who railroaded the Amtrak inspector general?

Who railroaded the Amtrak inspector general?
by Michelle Malkin
Creators Syndicate
Copyright 2009
Watchdogs are an endangered species in the Age of Obama. The latest government ombudsman to get the muzzle: Amtrak inspector general Fred Weiderhold. The longtime veteran employee was abruptly “retired” last month –just as the government-subsidized rail service faces mounting complaints about its meddling in financial audits and probes.
Question the timing? Hell, yes.
On June 18, Weiderhold met with Amtrak officials to discuss the results of an independent report by the Washington, D.C. law firm, Willkie, Farr & Gallagher. The 94-page report has been made publicly available through the office of whistleblower advocate Sen. Charles Grassley (R-Iowa). It concluded that the “independence and effectiveness” of the Amtrak inspector general’s office “are being substantially impaired” by the agency’s Law Department. Amtrak bosses have effectively gagged their budgetary watchdogs from communicating with Congress without preapproval; required that all Amtrak documents be “pre-screened” (and in some cases redacted) before being turned over to the inspector general’s office; and taken control over the IG’s $5 million portion of federal stimulus dollars.
Moreover, the report revealed, Amtrak regularly retained outside law firms shielded from IG reach. In another case, Amtrak’s Law Department appeared to meddle in an inspector general investigation of an outside financial adviser suspected of inflating fees. The consultant ran to the Law Department when the IG demanded documents; the Law Department repudiated the IG’s instructions on complying with a subpoena.
These interventions (ongoing since 2007) have “systematically violated the letter and spirit of the Inspector General Act,” according to Sen. Grassley. IG staffers now fear retaliation – and with good reason. Their boss, Weiderhold, lost his job on the very day Amtrak received the Willkie, Farr & Gallagher report. It may be hot and humid in the rest of the Beltway, but every inspector general’s office is feeling an Arctic chill.
The transparent sacking comes just as Amtrak is awash in more than $1.3 billion of new federal stimulus funds. It comes on the heels of the unceremonious dismissal of Gerald Walpin, the AmeriCorps inspector general who dared to probe financial shenanigans by Obama cronies. (See “Obama’s AmeriCrooks and cronies scandal,” June 17, 2009.) And it comes on the heels of the stifling of veteran Environmental Protection Agency employee Alan Carlin, the researcher who dared to question the Obama administration’s conventional wisdom on global warming. (See “EPA’s game of global warming hide-and-seek,” June 26, 2009).
Question the timing? You betcha.
So, who is behind the railroading of the Amtrak inspector general? As with the story of the AmeriCorps firing, which has First Lady Michelle Obama’s fingerprints on it, the Amtrak case smells like cronyism. Investigative journalist Robert Stacy McCain, who has watch-dogged the watchdog stories, noted last week that Amtrak’s vice president and general counsel is Eleanor Acheson.
Acheson, an old friend of Hillary Clinton, also has close ties to Vice President Joe “Mr. Amtrak” Biden. She hired Biden’s nominations counsel Jonathan Meyer to serve as her deputy general counsel. The two had also worked together in the Clinton Justice Department. Meyer called his hiring at Amtrak by Acheson a “happy coincidence,” according to Legal Times. (In another “happy coincidence,” Biden’s lobbyist son, Hunter, sits on Amtrak’s board of directors.) Acheson oversees the very Law Department accused of interfering repeatedly with the taxpayer advocates in the inspector general’s office.
Sen. Grassley has requested that Amtrak supply information on Weiderhold’s unexpected retirement, as well as internal and personal materials related to his departure and the report on Amtrak managers’ meddling. On the House side, Reps. Edolphus Towns (D.-N.Y.) and Darrell Issa (R.-Calif.) announced a probe Monday into Amtrak’s actions. They zeroed in on Amtrak’s choice of Lorraine Green to replace “retired” IG Weiderhold. (Click here for their letter to Amtrak Chairman of the Board of Directors Tom Carper.)
Who is Lorraine Green? She’s a former Amtrak human resources executive and faithful Democrat donor with no experience in the inspector general business. Her expertise? Managing “diversity initiatives” for the agency. Watchdog out. Lapdog in.
Can someone open a window? The fetid odor of Hope and Change is really starting to stink up the joint.
***
More:
D.C. Streets Blog – Capitol Hill:
As the oversight committee’s chairman, Rep. Edolphus Towns (D-NY), and senior Republican, Rep. Darrell Issa (CA) explained in a letter sent yesterday to Amtrak chairman Thomas Carper:
[T]he legal analysis found that Amtrak management claims that all expenditures of funds designated for the Inspector General must be approved by Amtrak management. In other words, the Inspector General may not use funds provided by Congress to investigate potential waste and fraud in stimulus programs without the consent of the organization being investigated. This is contrary to the clear intent of Congress and is unacceptable.
In a statement released yesterday, Amtrak noted that it had no opportunity to weigh in on the Willkie Farr report and stated that “there was no relationship between the timing of Mr. Weiderhold’s retirement and this report.” Carper added that the rail corporation “would like to maintain an open line of communication and are looking forward to cooperating fully” with the congressional inquiry.
Willkie Farr’s allegations of IG interference at Amtrak ranged beyond the stimulus law. Weiderhold’s office began a review of New York’s Moynihan Station project in March 2008, focusing on the apartment leased by the project manager as well as “the use of lobbying firms and consultants in connection with the project,” the law firm’s report states.
But when one of Weiderhold’s inspectors tried to get a copy the Moynihan project manager’s personnel documents, senior managers would only give him “two board meeting minutes, one which had been redacted,” according to the Willkie Farr report.
The oversight committee has not announced plans for any hearing on the Amtrak issues, but we’ll keep you posted.
Stacy McCain: IG round-up.
Moe Lane: The latest on the latest on the IG situation
***
Contact the House Oversight Committee to support a hearing into the Amtrak railroading.
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And just think were probably not even an eighth of the way in on Hilldebeasts demands of ‘the deal” made with His Royal Odopeyness in November.
Shouldn’t this be “last” month?
Then again there are a lot of favors to be done for the Party Faithful-they served The One well and must be compensated. Let us not let petty things such as the Law get the way of Hope and Change.
Amtrak Inspector General Fred Weiderhold could have an accident or sudden illness–it does happen; the Fort Marcy Park Effect.
Silly you, still have family in the old country?
(you might be a little young to remember that line from way too many spy movies)
I was going to suggest that someone keep a running tally of the instances of cronyism and partisanship, but Michelle is doing a fine job documenting it all.
Too bad the “real” journalists (see also, O.J.’s “real” killers) can’t be bothered to do the same.
Washington Post has had at least 2 stories on the firing and investigation.
You all see the pattern developing here?
When crooks breaks into a place to steal and engage in other illegal acts……. the first thing the criminals do is take out the guards.
Obama’s administration is in the process of neutralizing all of the guards so that his cronies can operate without fear of anyone pulling an alarm.
When is something more than requests for documents going to happen? I want to see Federal Grand Juries convened and indictments handed down.
Makes perfect sense to me: load up the IG offices with compliant Democrats who will oversee the distribution of wealth to those deemed appropriate. American politics and diversity at its finest. Remember: we have to spread the wealth around. The One told us so.
Let’s see here…. “Thirty days have September, April, June, and November, all the rest…”
DOH!!!
Another day…
another, “Dude, where’s my country…?!?!?”
moment.
Corrected. I wrote the column yesterday.
Hu….
zah…
How long before every agency has a ‘party oficer’ appointed by the polit-boro ?
(“ve haf wayz of maekeeng you ‘not talk’”
It is sad that the administration thinks it is above the law.
But I want to use this post to provide my support to a high speed rail system across the USA. I know it would be expensive, but it would provide jobs until it was completed.
If we could go by rail from NY to LA in 4 hours, we would save oil. Lots of people would use the train instead of the airline if it were as convenient. I know I would.
Ok folks, let us start writing the Senate Judicary and House Justice commities and demand an investigation, starting with AG Eric Holder.
I use the ‘knuckle’ system. Ball your hand in a fist and count the months using the knuckles and the spaces in between the knuckles for each month. The months that fall on the knuckle are 31 days, the others are 30 or less days.
Count the last knuckle as two (July and August). and then come back to complete the months.
Anyway it works for me. . . and I don’t have to remember anything. It’s the fist calendar.
What airline do you use that goes from NY to LA in 4 hours?
With Eric Holder’s Assistant Attorneys General convening? Let’s see here…. “Thirty days have September, April, … I am not hopeful.
Amtrak Inspector General Fred Weiderhold might get indicted for not removing his Amtrak Parking decal in a timely manner.
The Politics of Destruction is a Liberal’s Family Value.
That is encouraging. However, I’d like the broadcast networks and the White House press corps to start asking some pointed questions.
One would hope that all journalists will understand that there is a clear difference between partisanship and corruption.
The Good Airship Lollipop airline.
A government running wild and nobody to answer to. They are so confident that they don’t even try to hide their corruption anymore.
Hey I have an idea. The government is doing such a fine job running amtrak and the airline industries … subsidizing … not running … as we know the government does not want to “run” private industries … let’s give the government even more power to fully abscond with all powers related to private industry, health care and everything else that we the people are incapable or unwilling to provide for ourselves. Then everybody can hold hands, sing Kumbaya and live happily ever after … all equally of course … just that some people have to be a little more equal than others to make this happen.
/BARF!
Non-stop it is actually 3 “relative” hours, after you set your watch to local time.
HELP ME! I am starting to think like Harry Reid!
If you could do it by train, would you? Of course. We could lead the world in bullet train technology and reduce the need for oil consuming aircraft.
you could do it at 600 mph. I’ve driven it in 36 hours.
Once, not that long ago, there were common law grand juries, if something I read recently is true. Look it up.
They were pretty much “people’s grand juries”…the place where the term “run-away grand jury” originated.
Sort of makes one think….
Remember when the Democrat[ic Socialist]s were moaning about a lack of oversight in the Bush administration?
Projection, once again. They accuse Republicans of that which they themselves are guilty.
The next time you hear a Democrat accuse a Republican of wrongdoing, look closely at the Democrat… they are likely many times more guilty of that very same thing.
This is all so distressing.
Is it me or is there really this difference like night and day between the ethics of the 2 parties?
The Dems seem so blatantly corrupt and I didn’t hear AS much about the Reps. when they were in power, even with the rantings of Pelosi.
Were the republicans equally as bad and we just chose not to see it?
Boggles the mind.
I love high speed rail and that’s my means of xportation when in Europe. For the most part, very efficient and convenient. But!! From what I understand, it is highly and forever will be subsidized by the governments of each country (EU now?). That is something that is one long term committment and, in this country requires much planning. In other words, shouldn’t be in a bill that was not read/written and run thru like poop through a goose. (can i say poop?)
As to poop, apparently…
What’s wrong with ending the AMbroke monopoly, and seeing if there are free marketeers out there that would like to do some rail innovation?
Works every time it is tried…
***
I bet that Princess “SanFranNan” Pelosi’s “private” government jet probably goes from Washington, D.C. to Kalifornia in about 4 hours.
***
As far as Amtrak–it can not compete with the airlines without massive government (read TAXPAYER) SUBSIDIES–not in time–not in cost. Most passenger rail transport exists to satisfy nostalgia buffs like me–those who like Sopwith Camels, Harleys, Colt .45 revolvers, Jack Daniels, charcoal grilled steaks, girls, etc. Only I pay for my own items–I don’t expect someone else to do so!
***
Only businesses that can survive on their own should exist. The free market sorts things out pretty well.
Those that can not survive should go the way of the horse and buggy, dinosaurs, Ford Pintos, etc.
***
John Bibb
***
I won’t speak for all of Amtrak, but this is simply untrue of the Northeast Corridor. It is highly used and highly profitable.
From Amtrak’s 2008 Business Plan:
I actually prefer the Wild Turkey (Straight Kentucky Bourbon Whiskey as opposed to Sourmash which is what your Jack Daniels is) The charcoal after taste is just too unpleasant also whereas the aftertaste of the used wine casks that are used for aging Wild Turkey give it a little bit of extra flavor and not just pucker factor … but then again, who am I to say … budweiser and AOL make lots of money too.
I am with you on the single action Colt .45 though.
Exactly.
I’d liken the USA today to a person who is suffering from a fever: you can try ice packs or potions to try to reduce the symptoms, but in the end the only way out of it is to go through it.
With Hope-a-Dope at the helm, the House completely out of control under Pelosi and Reid sitting on a 60-vote, filibuster-proof majority, there’s not much that conservatives can do but wait and see if donk fever breaks in 2010.
The donks know this, too, which is (1) why they’re being so brazen, and (2) why they’re trying to do as much damage as they can before 2010, in the hope of making the patient so sick that he’ll never recover.
Those donks in the New York legislature, who refused to stand for or recite the Pledge of Allegiance because a Republican was reciting it? That’s the face of today’s donkey party: totalitarian-minded, petulant thugs who can only love their country when they’re running things.
Everything else is just variations on a theme.
Wow that bus be full by now. He better nationalize Greyhound soon!
I wonder, is it accurate for any of us to refer to these people as Clinton cronies? Wouldn’t it be more accurate to label them “Friends of Rahm?”
Then it would make a great item for a market sale.
There is no excuse for government monopoly.
To paraphrase Frank Pentangeli, “Your father did business with Barry Hussein. Your father respected Barry Hussein. But your father never trusted Barry Hussein.”
You can’t count the bodies on the undercarriage…
Hey knucklehead…when I was in school, we learned the “30 days hath September” ditty. It is short, easy, and after all these years, I still use it a lot. Back in the “old days”, school actually taught us some valuable things we could use in our daily lives. I don’t know how old you are, but if you had learned that fomula, you wouldn’t have to count on your knuckles. Just saying…
Oh, and Thacker, I am going out of town shortly so you won’t have to worry about my nasty comments to you for a few days. Happy Independence Day!!!
I am still waiting for Barrack Hussein Obama to pay for our house, our cars, our vacations, our medical insurance our bills, our and our children’s education all the way through to our doctorates and Medical degrees, etc.
My wife has heard enough from me saying, “Isn’t great! We don’t have to worry about anything any longer. Barrack Hussein Obama (Peace be unto him, Praise his Holy Name – tee hee) will take care of everything. He will pay all our bills, have our home renovated, buy us a new car, send us on vacation to Italy, India, Argentina, Hawaii, Morrea and Bora Bora, and so on!”
She has responded with, “You say that all the time, but I am still waiting. I haven’t seen Obama do anything for us, so I wouldn’t count on him.”
Recently, while at the lake in our nearby county park, the kind of park which is densely populated with wildlife, a plethora of flora and fauna, etc., I could have sworn that I saw our Savior, our Messiah, our Lord, Barrack Hussein Obama walking across the surface of the lake. There were birds alighting on his shoulder and he carried a lamb in one arm, while the tiger and the lion walked by each of his sides, wagging their tails in delight.
Oh, what a wonderful, peaceful world, full of love, light, and joy our Master has brought us!
He is so honest that Jesus the Christ walks away in shame!
All hail our Savior, our Master, our Messiah, our Lord, Barrack Hussein Obama (Peace be unto him, Praise his Holy Name), the ultimate Divine incarnation of God in human form, the ocean of honesty, integrity, mercy, and compassion!
We are so blessed to have such a man, and his wife and administration, with such integrity, such honesty, such compassion.
Mahalo!
Maui no ka oi!
William
/sarcasm off
Wow! And we’re only 6 months into the Obamessiah.
Chavez better watch out, Obama is going to put his Marxist takeover of Venezuela to shame.
Atlas Shrugged.
Hello “happyscrapper” and “ThackerAgency”
My wife, who is quite bright and well educated, learned to use the “knuckle” system of keeping the 31 and 30 day months in order, while I learned the “Thirty days have (hath) November, April, June, and November, all the rest of 31, except February, which as 28, until leap year comes, then it has one more.”
I had not recollection of ever seeing the “knuckle system” before I met my wife. When my wife first showed me the “knuckle system” I thought she was cute, or even adorable. The system actually works pretty good.
Nevertheless, I taught our children the “30 days have [hat) November, April, June … ” method.
Anyway,
Isn’t great that so many whistle blowers are being shut down in the new era of “Hope and Change?”
Yes, We can – silence dissent and anyone who dares blow the whistle on inappropriate and dishonest behavior.
600mph TRAINS?
LOL!!!! The air resistance! The red-hot front of the train!! The enormous barriers that would have to be put alongside the track to divert the blast wave and noise! The tens or hundreds of billions of $$$ to construct tracks and barriers, demolish buildings for right-of-way! The depoiling of millions of acres of wilderness, forest etc by frackin trains!
What about 600mph trains from NY to chicago? Or Chicago-San Francisco? How about LA to Chicago? Each track costing billions, each requring right-of-way?? See where this is going??
Simply crackpot. Not within the realm of technology. Or physics. Or economics.
Ever ask yourself why people invented airplanes in the first place? So they could go faster w/o having to spend $$ on building rails and roads?
Doi!!!
Oh and btw: where what’s gonna power these trains? Unless it’s electricity generated by nuclear power, there will be no net decrease in greenhouse gases.
Crackpotism to the nth.
Great point, “Common Sense!”
I was going to say that the government takeover of the news media and government take over of the energy system and business might come about soon, but I forgot, Barrack Hussein Obama is already being worshipped by the news media here and abroad and our energy system is being taken over by Obama and his government, as has businesses.
It’s started.
In this particular bill that the house just passed? Free Marketeers, you were kidding, right? Running slow today..
How much do we spend subsidizing civilian air travel through the FAA? ($14 billion in 2007) and the TSA? (about 7 billion).
Yes, the government taxes tickets, which presumably offsets some of the costs, but not nearly all.
I won’t even begin to get into the subsidization of car travel, building all those nice roads for all you drivers out there (I ditched my car last month). In 2008 alone the Federal Highway Trust Fund required an 8 billion dollar injection from general funds…
By comparison the $500 million or so subsidy for train travel is a relative bargain.
No, not kidding, Gladz…
Just following principals, rather than what we have to deal with in this bizzaro world we are living…
This is called “infrastructure”. It is a legitimate provision by a central Constitutional government.
But, hey, I’m good with it being a completely separate budget item, with the direct users paying fully for the costs.
You?
Same as above. I also think that private road-building is completely practical and should be employed.
You?
Yes, if only they could use some of that money to buy Sherrif Joe Biden a one-way ticket to somewhere else.
And why do you not consider rail “infrastructure”?
No. Because even those that do not directly use a particular portion of infrastructure derive benefits from its existence.
Same answer as above. WRT private roads, I say go for it. Public/private are not mutually exclusive. Just ask UPS.
zero hates ethical employees, so he finds a way to dismiss them. when one thrives on being unethical, honesty is like shining a light on cockroaches.
Now is anyone shocked that a Federal Official (and his spouse) from Chicago are up to no good?
The question is what, if anything, can we do about it?
First, it was privately owed.
Second, there is no intrinsic need for the government to build, maintain, or control it.
This is the classic (bankrupt) socialist argument. There are “free-riders” in the system, sooo… You are justified in socializing the system to make the “free-riders” pay. Ummm, no. There are ALWAYS free riders, if you drill down deep enough. That is NO excuse for socialism.
But a private enterprise CANNOT be successful in competition with government. One reason for this is the FACT that no private enterprise may impose a tax. They have to earn their money.
Another reason, as applied to roads, is that there is a practical limit to the number of roads that can be built. The government controls the ground, so to speak, and effectively monopolizes the field.
Ask UPS? You may be too young to recall, but FedX and UPS made a move to provide direct competition to the USPS back in the 70s. They were barred, by law.
Thank you, #44,fulldroolcup, for enumerating the obvious impracticality of supersonic trains.
OT…if you want to delineate corruption in DC.
From WaPo
Inouye calls Treasury to get a bailout for a local Hawaiian bank he is heavily invested in, yet:
So if you’re a Democrat Senator, you can get a federal bailout ($135M) to cover your investment and there is no problem, yet the peons you represent cannot exercise their free speech rights and run certain advertisements within so many days of your campaign?
I’m SURE the GOP will be all over this…
Not only invested in, but one he helped found, yet there is nothing wrong with this?
Not to mention the results of a train going 600mph hitting a cow.
moooooo..splat….
Ha!!
But, but, but, think of all the cow farts that will no longer pollute our precious Mother Earth.
Okay…your point is? When private industry was about to abandon it, the federal government moved in to protect what they felt was an integral part of the infrastructure.
What is the intrinsic need for the government to provide air control for private commercial flights? You are simply holding rail to a different standard because you more than likely don’t take it.
Drill down deep enough? Please. It sits right on the surface. Do you really not think that I as a non-driver, don’t benefit greatly from others being able to drive? Again, I think it is simply a matter of bias toward the particular aspects (roads, planes) that you personally use and labeling that “infrastructure” and dismissing the aspects that you may not use (rail) as “socialism.”
Planes flying into each other and crashing into cities.
Please support that with some evidence.
I agree as to the point on air control.
I repudiate your personal assumption. Why did you feel the need to do that? Please, rest assured that I would gladly use a fast, comfortable and efficient rail system…that was privately run.
The railroads own their right-of-ways and all their own facilities. If the government provided ROW, rails, and maintenance like it does for the trucking industry, railroads, including passenger traffic, would be fabulously profitable. What few ROWs are government-owned are leased to the operators.
ECS
From the original public law:
Next, I am a bit unclear as to what exactly you’re saying wrt air traffic control. Do you oppose the government providing that for private flights?
And okay, you repudiate my personal assumption. I didn’t think concluding that you probably don’t use rail based upon your opinion of it was terribly offensive. But so be it. I apologize. Perhaps you could just tell me then, how much you use rail to travel so I don’t have to assume.
Your statement was the government was compelled to take over passanger service because private providers were abandoning it.
I don’t give a flying flip what lie Congress uttered in their take-over.
It does nothing to support your statement.
I have not traveled on a passenger train since I was a child. As I said, I would be delighted to travel on a rail alternative to a car or plane that was comparable and competitive…and PRIVATE.
Anybody see a pattern here…????
Hmmmmmm…..?????
What part, exactly do you dispute? That private providers were abandoning passenger service? Here, read this.
If your issue is that you do not believe that Congress took it over to save it from dying…then…uhh… okay. I showed you the freaking preamble to the bill. If you think Congress was lying, great but the burden of proof is back on you.
Lemme help you, Chaps, since you cannot honestly provide your support.
The GOVERNMENT had screwed with the market by:
1. regulating rates
2. mandating service in uneconomic sections
3. favoring unions
4. intervening in, and prohibiting market transactions (i.e., mergers, entry into the market, trading in authorized routes, etc.)
5. taxation (imposing costs that other transport did not face)
6. restricting competition (awarding routes, etc)
That made passenger service unprofitable, substandard, and antiquated.
Then, SHAZAAM, they found that private providers were going out of business.
So, their response…then as now…after SCREWING up an entire sector of our economy…
Was to impose a fascist system.
This was done under, and by, Nixon, who was no conservative.
It was not due to the private rail companies failing. It was done as the result of GOVERNMENT intervention in the market FAILING.
Hope that clarifies this topic for you.
If everything you say is true, I have no doubt that is part of the reason, how does that change one bit my simple assertion that private rail wanted to abandon passenger service? I am not arguing whether or not the gunshot to the foot was self inflicted. I am merely pointing out the big hole in your foot.
Hope that clarifies my previous posts for you. Sorry I didn’t provide you with the necessary support for something I never said.
Government imposed restrictions and taxes on rail carriers causing them to suffer, then bought them up at bargain proces when the private operators couldn’t make a profit. All in the interest of the public good.
Does that sound like…
The mortgage industry?
The auto industry?
The energy industry?Sorry, got a bit ahead of myself.Wanted to abandon…?
That is like saying the legitimate owner of a business targeted by Tony Soprano wanted to abandon his or her enterprise.
But, I think our little demonstration is complete. Thank you for participating.
Another misleading use of the word “subsidize”. The word doesn’t mean “regulate”, or “oversee”. The stock market is not “subsidized” by the SEC. The FDA doesn’t “subsidize” the drug industry.
(never mind that the SEC has been completely ineffective in its regulatory function)
Here’s the definition of subsidy:
“Monetary assistance granted by a government to a person or group in support of an enterprise regarded as being in the public interest.”
The airlines do not receive “grants” by the government to help run their business. They do not profit from regulation, any more than restaurants profit from health regulations . Anyone who thinks airlines welcome the idiocy of the TSA hasn’t a clue.
As for
It’s called “public safety”, which is a basic function of government, especially in a federal system where some standards and regs must be unified to be effective.
Otherwise private flights could collide with military flights. Get it? GET IT?
Full; think with me on this…
Could a private organization do what the FAA does in terms of national air traffic control? No question that the function is a public safety necessity. Is the Federal government the only…or even the best…entity that can provide it?
I see, you want to make some silly pedantic argument about the nature of desire. Of course no one wants to abandon a profitable business, if it is IN FACT profitable, not if it could be profitable in the freaking abstract land of fairies and rainbows.
But, conceding your reasons, passenger rail service was not. Faced with reality, I suppose private providers wanted to shed themselves of presumably unprofitable ventures. Again, please note I am not arguing the reasons for the unprofitability (though the role government regulation played in the demise of private passenger service is hardly as open and shut as you seem to think). Merely the result.
Uh TA, that would require a 600 MpH (LA to NYC = ~2463 miles) train. A little excessive for rail travel isn’t it? It sure would decrease the amoount of time spent waiting at rail crossings. Although the occasional sonic boom as increasingly faster rail travel eventually breaches the sound barrier would get old quick!
Chaps;
“The patient died. Never mind that he was shot.”
The demise of private rail service in America is not merely and open and shut case, it is manifestly cause and effect.
But I don’t expect you to see the models all around you. That would take eyes that are open.
Right. The government subsidizes private commercial flight by providing a service necessary to the industry. How hard is that to understand?
If it was just about public safety, why not just mandate that private carriers pay for their own air traffic control?
And don’t think that air traffic is the only subsidization. How much money do existing or new airports receive from the federal government? How is a nonexistent airport a safety concern?
Rags, if we were a smaller country w/o a federal system (like the UK), a private organization might be able to run an air traffic control system.
But here in the US such an organization would necessarily require federal backing , since even the “private” FAA would have to deal with military aviation, let alone work with and within each state to handle civil aviation.
I suspect a private entity would have to be given immunity from lawsuits as well. Otherwise any crash that involved the “private” FAA’s employers (such as traffic controllers) or equipment (a faulty radar or weather detector) would lead to ruinous lawsuits). Lawyers would be able to second-guess capital expenditures (“If you had only replaced that radar dome last year this crash would never have happened.”)
Statistically such a private entity would be sued every year or so, if not given immunity—not something potential investors would want to contemplate
(Think a private FAA wouldn’t have been sued for allowing those birds near the end of the runway in NY?)
I support privatization, in general, but not when “public safety” is involved. Ergo no private armies either.
(We saw on “24″ where that leads!
)
Sorry, but that is NOT the definition of a subsidy. Maybe in your own mind you can distort the language to make ALL government services “subsidies”, but in the world of rational people you will justly be ignored, if not mocked.
Does the government subsidize you by having an army and navy? Does it subsidize you by building interstates you use to commute? No, you pay taxes to support those valid functions, which in turn benefit you and the rest of society.
Because obviously nothing short of a fully coordinated and integrated system will provide for nationwide safety. In any case the airlines do pay a variety of user fees to help pay for the services they get. The traveling public pays them in the end, though, through higher ticket prices — just as happens in all other industries getting services from the government.
(Not so with real subsidies, such as the ones given domestic sugar growers)
Sorry, but if you want to argue that providing for national infrastructure that permits essntial businesses to function is not a valid function of the federal goverment, you are on your own.
As for “new airports”, leftist NIMBYs have made damn sure no major airports have been built for over 20 years. I think Denver was the last.
But don’t try comparing that to Amtrak, which has consistently lost money and could not exist unless the government continually contributed to its operating and capital budgets.
The airlines have never been big moneymakers, but they at least didn’t get government money when most went into, and emerged from, bankruptcy. Unlike AMTRAK they pay their way.
If I knew what your point is, I might respond.
Full:
There are many successful private fire departments and ambulance services.
An air traffic control system deals in information. Couldn’t a private FAA equivalent have the same information?
Every industry is liable for a deviation from the standard of care. Nothing else, generally speaking. I know this, because I am a suer (I sue, and defend, people and businesses).
When an industry faces risks, they buy insurance against those risks. When they CAN be liable, isn’t there a strong incentive to avoid liability? Would that not auger toward greater safety?
Birds are an “act of God”. That’s a very good defense, BTW.
Remember a few years ago when the FAA paid gazillions for a new, whiz-bang radar system…that didn’t work? Would a private firm be as likely to make that gaff? If it did, would you and I have paid for it?
Private armies, no. But then, the Constitution provides for our common defense.
Just submitted for your consideration.
fulldrool:
Fact: The commercial airline industry could not function without air traffic control.
Fact: The various fees and taxes charged to passenger tickets don’t come anywhere CLOSE to covering its cost.
If you don’t like my definition of subsidization, fine, use whatever word you like to call the fact that the government is covering the difference between the actual costs and what it charges the industry.
No. My argument is that passenger rail is part of that same infrastructure.
How do you think they would do if they actually had to pay for all of their costs? If they had to pay to build their own airports?
My point here is that federal dollars go all the time to building new airports, or expanding new ones so that they can have more flights or accommodate bigger planes. If you want to get worked up about Amtrak’s subsidies, maybe you should try to muster up some rage for aviation project outlays that are not directly related to safety.
I disagree with Rags for the most part, but at least he is consistently indignant about government spending.
Sources, please.
Ummm….what about the MANY fees that are paid by cargo carriers?
When the DFW Airport was built, an IMMENSE bond issue was subscribed to by local people. I’m sure there was Federal money, but was it necessary?
If you want to pour over this to verify, be my guest, but essentially the FAA budget is about $15 billion. Its take from the all the various excise taxes is about $5.6 billion.
Chaps;
Looking a page 21, I see a very close match between receipts and outlays.
Arghhh! My posts are not getting through.
Chap: the problem with your argument is that AMTRAK pays no income taxes or user fees, and thus contributes nothing to the construction of its own track bed and equipment.
Airlines and cargo carriers do pay taxes that indirectly go to airport construction and maintenance, plus all the other user fees they pay.
Your use of the word “subsidy” is downright PERVERSE.
Are YOU “subsidized” when YOU use an inter-state to commute to work?
Finally, why do people and institutions invest in airport bond issues, when they know (according to you) that the airlines won’t pay their fair share?
To call what you pass as “argument” as sophistry would be giving you too much credit.
You are misreading. That is not the FAA’s budget. That is the budget for the Airport and Airways Trust Fund, which collects all those excise taxes. Line 4504 gives the the amount of those excise taxes that go to FAA functions.
You do know they charge you to ride the train right? So to say that Amtrak contributes nothing to its own maintenance is patently absurd.
And my point is that they pay in less than their total costs. If your only definition of “subsidize” is that absolutely 100% of the amount is paid from general funds, well…then..forget it..it is pointless to argue with you. Try to follow this analogy. Giving you a painting worth $100,000 is a gift of that amount for tax purposes. Selling you the same painting for $25,000 is still a gift to the extent of $75,000.
To the extent that gasoline taxes do not pay for 100% of all of the costs associated with building and maintaining highways, yes I am subsidized.
That reading would make the cash receipts several times the outlay. Wanna read that again…?
The receipts are $12 billion plus.
Thanks for the heads-up, Michelle.
I wrote the House Oversight Committee, and noticed they say they will investigate the Amtrak IG ‘retirement’, hope it’s a real investigation and not smoke-blowing.
Right. Only 5.6 of which goes to the FAA. That makes up, what? 40% of the FAA’s total budget. The rest of that trust money goes to other programs related to aviation.
No, its revenues help pay its operating expenses, and NOT its capital expenses. That’s the way accounting works. Revenue minus COGS is profit. Profit, as retained earnings, is used to fund capital expenses, as is other sources of capital, such as borrowing.. Amtrak’s income statemetns clearly show the capital contributions coming from the feds, year after year.
Airlines fund their own capital expenses, mainly in the form of their airplanes and facilities. Airlines have to pay back their creditors; Amtrak doesn’t. Amtrak doesn’t even pay for its trains. Airlines pay income taxes and user fees. Amtrak doesn’t.
Totally off-point, due to your narcissistic attempts to impose YOUR definitions on the world.
Try to follow THIS: an airport is not a thing or “service” that someone can “give” you for free, or to which anyone can impute INCOME. Its “value” cannot be determined by divvying up some number, because some of what it is and does depreciates over time, while other things do not. Some of what it does comes from capital expenses paid for by long-term bonds, IOUs. Other parts don’t directly affect the profitability of the airlines at such as parking and restaurants, which are big moneymakers at all airports.
The task of the airport authority is to recapture its capital costs over time, to repay its debts, and to at least break even.
YOU seem to think airport authorities operate in the red all the time. Evidence for that?
Logan Airport in Boston was in the black for 2006-2008. Kinda explodes yer premise, doesn’t it.
I say again: why do bondholders accept IOUS for airport construction , knowing that airports aren’t paying their share?
You refuse to answer that, which is telling.
And I am the Queen of Sheba.
Bush fired some attorneys for NOT doing their job. Obama fires them FOR doing their job.
Culture of corruption indeed.
Heck, even if some Obama crony did get arrested or indicted, Holder would just let them off anyway, a la the New Black Panther poll thugs and community activists.
Wrong. They fund some of them. The federal government helps out too. If you want to make a silly argument about whether a cost is capital or operating, be my guest. It is difference without distinction in this context.
Did they pay back federal grants? Did they pay for the air traffic control they depend on? Did they pay for the TSA that they depend on? Its easy to make a profit when Uncle Sam is picking up a nice chunck of the tab. Which is also why they are able to pay back all those nice bondholders.
You are being a tool on this. Your definition of subsidize is stupid and narrow.
Enough with you. Go ahead and hate Amtrak all you want, big fella.
Chaps:
You are all over the place here, and it isn’t pretty.
You claimed that the taxes and fees charged by the FAA don’t cover the costs of civilian aviation. The figures prove you wrong.
I have no doubt that the FAA spends more than it takes in from the sources noted, but a lot of what they do has little or nothing with airlines or cargo carriers. I read their happy BS budget.
You claim that fuel taxes don’t cover the cost of highways. I haven’t seen anything to support that.
You claimed that the private passenger carriers “abandoned” their interests. I showed you they were driven out of business by government interference in their market.
Nothing here is getting through, is it?
So, this reduces to a demonstration of your kind of thinking vs. ours.
Citation please. I don’t think you are getting that the FAA does not receive all of the money from those excise taxes. In simplest terms, their budget in 15 billion. They get 5.6 billion from the trust that collects the ticket excise taxes. Please show me where you dispute this. Cite a page number in the report if you can.
Citations, please. What things? Also, what percentage of their budget is comprised of these items that you claim have nothing to do with airlines or cargo carriers.
I think I read that around 1/3 of all highway spending is paid for by gas tax. I am looking for the cite.
I said they wanted out because it was losing money. I was even willing to concede your arguments as to why they were losing money. “Wanted out” b/c they couldn’t make a profit v. “forced out” is stupidly pedantic. If that is the extent of your thinking as opposed to mine, I am glad to be on the other side.
Chap, if a federal grant to expand the services or physical infrastructure of an otherwise profitable public enterprise such as most airports is a “subsidy”, then I STILL am the Queen of Sheba.
Because a science grant to a university has to be “subsidy” too, right?
Of course it does, because (accordin to you)everything the govt spends money on is a “subsidy”, right down to national defense, which is “really” a defense contractor subsidy.
If government spends billions to propr up an otherwise UNprofitable enterprise, wee, that’s just fine with Chap, because it serves a social purpose.
But if profitable enterprises don’t contribute an unquantified “more”, Chap just shoots off his yap claiming (w/o ANY evidence here) that they don’t pay enough.
UNLESS the govt. $$ is spent on are bogus airoprt projects like your HERO Jack Murtha, which I guess is OK with Chap. But major airports MAKE money for their states, and airlines and cargo carriers MAKE money for themselves, as well as enrich their communities. Amtrak makes no money, doesn’t even come close to paying its own way, and can’t compete with airlines, trucks and cars.
Chap, If brains were C4 you wouldn’t have enough to blow yer frackin nose.
You ask for citations but ignore ours.
Again:
Logan Airport in Boston was in the black for 2006-2008. Kinda explodes yer premise, doesn’t it.
google it yourself.
I say again: why do bondholders accept IOUS for airport construction , knowing that airports aren’t paying their share?
Answer that or STFU.
What a frackin moron.
You are lgm with an (alleged) law degree.
Idiot. I never said every government expenditure is a subsidy. And the military is not a private profit making venture. So your analogy is as inane as the rest of your arguments thus far.
Sounds like you might have some issues to discuss with your therapist next session.
Show me that airlines would be profitable if they absorbed all the actual costs inherent in flying.
I have no idea what the hell you are spouting here. Please provide a droolcup to saneperson translaion.
Ours? Huh? Show me one freaking citation you have made. I just checked your posts and you have provided jack. I guess you are just sucking off Rag’s teat when you claim citations, since he can actually make an argument.
Jack Murtha is not my hero and is apparently only slightly more senile and imbecilic than you.
Sure. But do they pay back all the money the government sinks itno them? Answer my question for a change. WOULD AIRLINES BE PROFITABLE IF THEY HAD TO ASSUME ALL, AGAIN ALL, OF THEIR ACTUAL COSTS????
Your stupid argument that “Logan was in the black” (which doesn’t “explode” any “premise” I put forth, fwiw) and that airport authorities have bondholder confidence totally ignores that the airline industry is already starting with a head start in the profit game by virtue of the fact that the US government provides essential services to these entities at below cost. The rest of that is made up from general funds. I have no problem with this. I agree airports do enrich their communities and the US as a whole. I also think rail does as well. That is my point, genius. Again, dollars to donuts, you don’t use rail and thus have an irrational bias against it.
I want to get to the top of the next page.
One more and I get to the top again!