Quotulatiousness

January 26, 2021

The brief and inglorious life of Penn Central

Filed under: Books, Economics, History, Railways, USA — Tags: , , , , , — Nicholas @ 04:00

In City Journal, Nicole Gelinas recounts the tale of the fateful merger of two great American railroad systems that lasted just long enough to support massive financial chicanery before descending into inevitable bankruptcy:

More than 50 years on now, the spectacular collapse of the Penn Central railroad in 1970 is little remembered today, but its legacy is still with us — not so much as a warning, but as a prelude: to New York City’s own near-bankruptcy in the 1970s; to four decades of financial engineering, beginning in the 1980s; to the 2001 Enron downfall; to the 2008 financial crisis and its “too big to fail” bailouts — and yes, even to the public discontent that elected President Donald Trump.

As America emerged from World War II, most people would have laughed at the idea of the nation’s two premier freight and passenger railroads, the Pennsylvania and the New York Central, going broke in a quarter-century’s time. By design, the Pennsy and the Central were not fierce competitors but complementary “frenemies” that had long agreed not to undercut one another’s monopoly profits. From Massachusetts to Missouri, the two railroads dominated freight and passenger travel in the northeast quarter of the United States, with nearly 21,000 miles of track between them.

Yet even as America built its powerhouse postwar economy, the railroads struggled. As Joseph R. Daughen and Peter Binzen write in The Wreck of the Penn Central, their cult-classic chronicle of the Penn Central’s demise, during the war the then-separate railroads had been running their equipment 24 hours a day to transport troops and supplies, leaving them with “worn-out” equipment.

In the fifties and sixties, moreover, new competitive pressures prevented them from catching their breath. Trucks competed with the railroads for freight hauling via the new, free highways the nation was building. Commuter-rail passengers moved to the highways as well, while long-haul rail passengers took to the skies. The railroads’ decline accelerated in the sixties, partly because of the collapse of northeast manufacturing.

In 1962, the two companies decided to merge. But railroading was one of the most heavily regulated industries in the United States, so the merger took six years, as it wound its way through multiple levels of public approval for the creation of the 100,000-worker, 100,000-shareholder, 100,000-creditor behemoth. Meantime, government-set rates already fell short of the railroads’ long-term costs.

The combined entity that would become the Penn Central made significant concessions to win political support for the merger, including no-layoff pledges that would hamper its ability to cut spending and a promise to take on the independent (and chronically insolvent) New York, New Haven, and Hartford passenger railroad.

After the merger, the railroads discovered that they had incompatible computer systems, which threw railyards into chaos and angered customers. The Penn Central’s three top officials, too, were incompatible. They “scarcely spoke to one another,” write Daughen and Binzen. Stuart Saunders, the board chairman, was a political guy. Alfred Perlman, the president, was a trains guy. These different outlooks could have complemented each other, but personalities got in the way. Rounding out this dysfunctional triumvirate was Penn vet David Bevan, the top financial official, perpetually “angry and humiliated” at not being picked for the top job.

Penn Central route map from us.leforum.eu
http://us.leforum.eu/t1355-Photos-du-Penn-Central-PC.htm

H/T to Ed Driscoll at Instapundit, who also posted this video the combined entity put together to celebrate the merger:

£760m to connect Bicester and Bletchley? That’s … very spendy

Filed under: Britain, Economics, Railways — Tags: , , — Nicholas @ 03:00

At the Continental Telegraph, Tim Worstall looks at the economic case for building the East-West railway line — in “reverse Beeching” style — to connect Oxford and Cambridge:

The cash from the Department of Transport will be used to lay track along a disused railway line between Bicester and Bletchley, in Buckinghamshire, with services beginning in 2025.

Excuse me? £760m to link Bicester and Bletchley? Other than the fact that that is £50m/mile, which should be the cost of rail lines made from crushed Faberge eggs and unicorn hair, how many people want to travel between Bicester and Bletchley by train? That’s roughly £10K/person in those small towns. OK,that then extends to Oxford, but that allows around 30,000 more people to go by train to Oxford. Which is not a particularly busy commuter metropolis anyway.

The aim is to complete the whole project by the end of the decade, according to the government minister overseeing it.

2 miles per year? Are they going to use canals and horses like Brunel?

[…]

Elsewhere, the new railway will shorten journey times between routes outside of London. Travellers from Oxford for example, will no longer have take a train into the capital and back out again to reach Milton Keynes, but could travel there via Bicester.

Again, what’s the demand for this? How many people want to do this, and would it be cheaper to just hire some chauffeurs to drive each passenger in a Ferrari from Bicester to where they want in Milton Keynes? I doubt it will be any quicker than a car because this only gets you to Bletchley, and then you have to get off a train to get to Milton Keynes, and then get where you want in Milton Keynes.

This used to be an active railway corridor before the Beeching cuts in the 1960s, which slashed a lot of uneconomic branch lines from British Rail’s network. If the land wasn’t sold off, then it’s just a matter of re-laying the track and ensuring that any existing bridges, embankments and drainage culverts are still capable of handling the renewed rail traffic. It seems unlikely that the mere engineering aspects of the project would require several hundred million pounds to complete, so perhaps there are some land issues that need to be re-acquired to allow the railway to become active again.

Here’s the route in question on Google Maps.

Tank Chats #92 | Challenger 2: Part 2 | The Tank Museum

Filed under: Britain, History, Military, Weapons — Tags: , , , , , — Nicholas @ 02:00

The Tank Museum
Published 17 Jan 2020

Part 2 of a two-part episode on Challenger 2 [part 1 was posted here]. As David Willey had so much to say about this British in-service vehicle, it has been split into two parts. The second part examines the Challenger 2 in service. David talks to soldiers currently serving on the Challenger 2, looks at where it has seen service and some of the tank’s features. With thanks to the British Army for their assistance.

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#tankmuseum #tanks #challenger2 #britisharmy #davidwilleytankchat #davidwilleychallenger2

QotD: “A world organized around institutional mass slavery”

Filed under: China, Economics, Europe, Greece, History, Quotations — Tags: , , , , , — Nicholas @ 01:00

An example: We’ve discussed all the cool steampunk shit the Greeks could’ve had, if only Archimedes had … well, that’s just the thing, isn’t it? We look at the aeolipile and see a prototype steam engine; they looked at it and saw, as best we can tell, a party trick. Back when, I suggested, Marxist-style, that labor costs were a sufficient explanation for why nobody took the obvious-to-us next step of hooking the thing up to something productive and kicking off the Industrial Revolution. Machines are labor-saving devices; the ancient world had a gross excess of labor. Calling the aeolipile a steam engine, then, is a category error.

New hypothesis: It’s a category error, all right, but not because they didn’t think in terms of labor costs. It’s because they couldn’t think in terms of labor costs.

A world organized around institutional mass slavery is, in a very real sense, a timeless world. Herodotus (I think) actually says somewhere that nothing worth mentioning happened before him, and you can see echoes of this attitude even as late as the Antebellum South. You see their attitude described as “conservative,” but since that’s egghead shorthand for “evil” you can ignore it. They weren’t consciously backward-looking; rather, they were deeply rooted to their place and station. To the outsider, it looked like they were trying to hold time back, but to the insider, time — clock time, industrial time, the time of the Protestant work ethic — barely existed at all.

So with the Classical World. The Romans, for instance, are endlessly frustrating to their admirers (of which I am an ardent one). Their only economic fix, for instance, was debasing the currency, i.e. a primitive form of inflation. You guys could figure out how to hew an artificial harbor out of some desert rocks — a trick we’d have a hard time pulling off today — but you couldn’t figure out fiat currency? Or a better political system than the tetrarchy? Or that the forts-and-legions paradigm just isn’t cutting it? Or … etc.

Stuff like that is why Spengler said classical, Apollonian culture was fundamentally different from, and incompatible with, our Faustian culture. According to Spengler, the master metaphor for the Apollonian is the human body, which is beautiful but changeless (emphasis mine, not Spengler’s). You can improve your body somewhat, but only within certain tight limits, and the body’s fundamental form is always the same (we could time warp Julius Caesar into the Current Year and still recognize him as a fellow homo sap., no matter how different his mind might be).

The Faustian, though — that would be us — organizes his worldview around space, infinite space. Practically speaking, this results in our attitude of innovation-for-innovation’s sake. We send a man to the moon because we can, but such an idea would never occur to the Romans, for the same reason they didn’t apply all their awesome engineering knowledge to the problems of governance. Hacking a harbor out of the desert is a tremendous feat, but it’s a local feat — a one-shot deal, a very specific response to a very specific local problem, with no broader applications.

This, I suggest, is because the timeless world of institutional mass slavery naturally selects for the kind of man who is at home in the world of institutional mass slavery. It’s a world of very low future time orientation, because “time” hardly exists at all. Forget machinery for a sec; the Roman world was full of enormous problems that had teeny-tiny, head-slappingly obvious fixes. Julius Caesar, for instance, was considered some kind of prodigy because he could sight-read books. Which really was a noteworthy feat, because Romans didn’t even put spaces between their words, much less use any sort of punctuation marks. And they were radical innovators compared to the Ancient Egyptians, since at least Roman writing all ran left-to-right; hieroglyphics can be read in any direction, including vertically, and I’m pretty sure there are examples of them changing text orientations in the middle of the same inscription. It’s not hard to imagine some legion commander actually losing a battle because he had to stop and sound out an important communique from a subordinate …

… and yet the Romans, for all their technical skill, never even figured that tiny change out. See also: The Chinese doing fuck-all with movable type, vs. (Faustian) Europeans using it to conquer the world. China, too, was a timeless society. As Derb says somewhere, Classical Chinese isn’t even really writing; it’s more of an aide-memoire — designed to remind readers of stuff they already know, not to communicate new information.

Your post-Roman European, by contrast, lived in a world where high future time orientation was an absolute must. You don’t need hypotheses like the famous “lead in the drinking water pipes” to explain the seemingly bizarre things the Romans did, or didn’t do; all you need is time orientation, a fundamental attitude of “this is a variation on an old problem” vs. “this is an entirely new situation that requires a new response.” Life in the post-Roman world was solitary, poor, nasty, brutish, and short — every man for himself; think through the consequences of your actions very carefully before you do them, or die horribly. Those who failed to do so died. Bake that into the genetic cake for a few generations, and you get Renaissance Man, who’d see a million possible applications for the aeolipile.

Severian, “Bio-Marxism”, Rotten Chestnuts, 2020-09-24.

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