Quotulatiousness

November 13, 2020

Oddly, the Canadian media evince no interest whatsoever in the Trudeau government’s malign plans for the Internet

Filed under: Business, Cancon, Government, Media — Tags: , , , , , , — Nicholas @ 03:00

In The Line, Peter Menzies shows how little the mainstream media outlets in Canada care about the power grab the feds are attempting with their proposed “get money from web giants” shakedown:

Canadian Heritage Minister Steven Guilbeault, 3 February 2020.
Screencapure from CPAC video.

In order to understand where media and public attention has been the past couple of weeks, all you had to do was listen in on Monday morning’s Ottawa news conference.

Six days after Heritage Minister Steven Guilbeault had introduced ground-breaking legislation to regulate content online, Prime Minister Justin Trudeau announced more cash to bring better Internet to rural and remote communities. There were also some COVID-19 updates and something about help for agriculture.

And, of course, the questions asked by the media were about the U.S. election. What else could possibly be of interest?

Eventually there were a few inquiries about Telesat and low-Earth-orbit satellites, but you get the point: things that matter to people’s daily lives such as cable bills, data plans, Netflix, cellular service, crappy WiFi and slow Internet connections haven’t been of much interest to Canadian media lately.

So there has been a dearth of chatter about Guilbeault’s controversial plan to (my words, not his): restrict consumer choice, tax Netflix to finance certified Canadian content (Cancon) and bring to an end the greatest period of prosperity in the history of the Canadian film and television industry. Did I mention stifling innovation, increasing streaming subscription costs and scaring away investment? No? My bad. Those too.

Guilbeault has decided that the agency dedicated to defining the nation’s TV and radio diet — the Canadian Radio-television and Telecommunications Commission (CRTC) — is now going to be in charge of what you are allowed to dine on online as well. No longer will you be able to manage your preferences. No more popcorn and candy for you. Going forward, Cancon spinach and broccoli will be on your plate every evening. Breathtakingly, Guilbeault has “modernized” communications legislation by giving authority over the Internet to something called a “radio-television” commission by using something still called the “broadcasting” act.

November 9, 2020

Maine conducts brave and daring experiment with an $18 per hour minimum wage

Filed under: Business, Economics, Politics, USA — Tags: , — Nicholas @ 03:00

It’s a bold move, says Jon Miltimore, let’s see if it pays off:

While Florida, which on Tuesday passed a $15 an hour minimum wage referendum, was the only state to have the minimum wage on the ballot in 2020, some localities also voted on the issue.

One of those cities was Portland, the largest city in Maine. The referendum sought to increase the minimum wage from $12 an hour to $15 by 2024. The measure also mandated that workers receive time and a half during a civil emergency (like, say, a pandemic).

Despite opposition from the city’s mayor, seven members of the city council, and dozens of Portland businesses, the measure passed with 60 percent of the vote. That means as early as next month the minimum wage will be $18 an hour, since Maine has declared a civil emergency. (The time-and-a-half will kick in on the $12 minimum wage.)

Businesses already ravaged by stay-at-home orders from the coronavirus have expressed worry about how they will manage to stay in the black.

“In the last 7 months business has dropped from 30 to 50 percent and food costs have skyrocketed. This added increase on a business already depressed due to the pandemic is tough,” one Portland business owner who declined to speak on camera told WCSH, an NBC-affiliate. “We may have to either cut employee hours or cut back on business hours.”

Cutting employee hours is just one of the ways employers negatively respond to laws that artificially raise the price of labor. Other responses include cutting other forms of compensation, such as health care or 401k benefits, replacing workers with robots, and simply assigning employees to do more work.

These are hardly the only unintended consequences. For example, economists David Neumark and William Wascher found that higher minimum wages decrease the number of teens enrolled in high school because they encourage high-skilled teens to drop out; this in turn displaces low-skilled workers.

November 8, 2020

QotD: Tribal and post-tribal economies

… it was a problem of permitting, by and large. Portugal isn’t as bad, mind, nowhere near but in the seventies a lot of places were designated “green belts” everywhere, so that to build on them (and you had to build on them, or you were stymied in growth) you had to know who to bribe, and of course have the money to do it. This isn’t the only reason why favelas end up housing even the middle class. There’s a ton of other reasons, including but not limited to land ownership and property rights, and a shit-ton of stuff. But permitting is part of it.

This is because people don’t view their public posts as something they do to make society better/serve society or even do a job, but as a way to enrich themselves/benefit their friends/make it easier to make money in the future.

Everything, from truly shoddy workmanship to rushed, corner/cutting work, to outright corruption comes from viewing a job not as something you take pride in and work to do your best at, but from viewing a job as an opportunity to enrich yourself and your family while doing as little work as humanly possible. In fact in some societies, this is viewed as a duty. As someone in comments cited there are places in Africa where locals can’t run a shop, because all their relatives near and distant will expect to be given merchandise for free … or even money out of the till.

A lot of this is because the idea of the individual as independent of the tribe and the family is a very new thing in most of the world. We kind of have a head start on it because we are/are descended from those who left family and tribe behind.

[…]

Also in most of the world working for money is vaguely shameful. Particularly so if you’re working for someone else. […] And even here not only does that attitude persist, but it’s trying to make itself normal. Particularly in politics.

So, take pride in what you do, and do the best job you can. It’s not just important for you, it’s a building block of society. Do the best you can, and control as much as you can, so maybe you will have just reward which is an incentive to do better.

This way is civilization built. This way do things actually improve.

Sarah Hoyt, “BUILD!”, According to Hoyt, 2018-07-25.

November 5, 2020

America on the Brink of Revolution? | BETWEEN 2 WARS: ZEITGEIST! | E.02 – Winter 1919

Filed under: Britain, Business, France, History, Media, USA — Tags: , , , , , , , — Nicholas @ 04:00

TimeGhost History
Published 4 Nov 2020

There is revolution and fear of revolution throughout the world in the winter of 1919. But cultural and technological revolutions are also bringing hope to many. A new age of Jazz and Cinema is about to reach America and Europe.

Join us on Patreon: https://www.patreon.com/TimeGhostHistory

Hosted by: Indy Neidell
Written by: Indy Neidell, Francis van Berkel, and Spartacus Olsson.
Director: Astrid Deinhard
Producers: Astrid Deinhard and Spartacus Olsson
Executive Producers: Astrid Deinhard, Indy Neidell, Spartacus Olsson, Bodo Rittenauer
Creative Producer: Maria Kyhle
Post-Production Director: Wieke Kapteijns
Research by: Indy Neidell, Francis van Berkel, and Spartacus Olsson.
Archive Research: Daniel Weiss
Edited by: Daniel Weiss
Sound design: Marek Kamiński

Colorizations:
Daniel Weiss – https://www.facebook.com/TheYankeeCol…
Mikołaj Uchman
Norman Stewart – https://oldtimesincolor.blogspot.com/

Sources:

From the Noun Project:
– Money by Gilberto
– lightbulb By Maxim Kulikov

Soundtracks from Epidemic Sound and ODJB:
– “One More for the Road” – Golden Age Radio
– “The Last Journey” – Line Neesgaard
– “Tiger_Rag” – ODJB
– “Not Safe Yet” – Gunnar Johnsen
– “Please Hear Me Out” – Philip Ayers
– “Dark Shadow” – Etienne Roussel
– “The Inspector 4” – Johannes Bornlöf
– “I Won’t Give You Up” – Almost Here
– “The Charleston” – Macy’s Voice
– “Defeated” – Wendel Scherer

Archive by Screenocean/Reuters https://www.screenocean.com.

A TimeGhost chronological documentary produced by OnLion Entertainment GmbH.

From the comments:

TimeGhost History
2 days ago (edited)
As in life, this series will always be a curious balance of light and dark. In the winter of 1919, one Parisian might have tickets to see the Original Dixieland Jass Band while their neighbour lies destitute after the war, and a well-to do man in Glasgow might be at the cinema while tanks rolls into his city to quell industrial unrest.

Troubled and fascinating times then and troubled fascinating times now here in 2020. All of us here at TimeGhost hope that all of you are healthy and staying safe. And hey, if you need some entertainment to pass the time, you can find plenty of Between 2 Wars episodes alongside WW2 In Real Time and BIO Specials!

Fallen Flag — the New York, Ontario and Western Railway

Filed under: Business, History, Railways, USA — Tags: , , , — Nicholas @ 03:00

This month’s Classic Trains featured fallen flag is the New York, Ontario and Western, which ran from Oswego on the south shore of Lake Ontario down into the New York City megalopolis. Sadly, the line is best remembered as the only Class 1 US railway to be completely abandoned. John R. Taibi outlines the history of the NYO&W from formation to abandonment in 1957:

Preserved NYO&W General Electric 44-ton switcher number 104 preserved at the Southeastern Railway Museum in Duluth, GA.
Photo by Harvey Henkelmann via Wikimedia Commons.

The New York, Ontario & Western Railway struggled to find its place among the many transportation systems serving New York City, but in the end it was able only to secure a place in history as the first Class I railroad to be abandoned in entirety. Despite this unenviable status, “the O&W,” as it was known, did endear itself to the communities along its line. After all, it was the carrier that had brought boxcars full of prosperity to every community along the line during its 76-year life.

Begun on January 21, 1880, the O&W set a goal of improving the Oswego–New York corridor, as well as the branches to New Berlin, Delhi, and Ellenville, N.Y., it had inherited from the New York & Oswego Midland. The O&W developed a new entrance to Gotham from Middletown, N.Y., that ran to Cornwall on the Hudson River, thence to Weehawken, N.J., by rights on the New York, West Shore & Buffalo Railway (later New York Central).

[…]

As it improved its physical characteristics, the O&W also acquired modern motive power to haul its numerous coal, milk, passenger, and general freight trains. Where previously Camelback 4-4-0s, 2-6-0s, and 2-8-0s were as common as the road’s wooden coaches and country depots, a corps of end-cab locomotives helped usher in the new era. E-class Ten-Wheelers (1911), W-class Consolidations (1910-11), X-class 2-10-2 “Bull Mooses” (1915), and Y-class Mountains (1922 and ’29) provided the power for passenger trains to the Catskills, milk trains to Gotham, and coal trains to Oswego, Cornwall, and Weehawken. Still, many Camelbacks worked into the mid-1940s.

This familiar, widely circulated O&W map was created by cartographer Crawford C. Anderson.
Classic Trains.

[…]

Dieselization was hoped to be a savior, and under [O&W bankruptcy trustee, Frederick E.] Lyford’s direction a handful of GE 44-ton switchers arrived in 1941. Nine two-unit EMD FTs came in 1945 and were put into fast merchandise service between Scranton and Maybrook, and Scranton and Norwich. Lyford’s successors in 1948 acquired additional F3 and NW2 diesels, enough to banish steam locomotives from service by that summer.

By that time, though, O&W’s accumulated losses amounted to $38 million. It was beyond the ability of trustees, the reorganization court, and diesel locomotives to extricate the carrier from financial ruin. Nevertheless, passenger trains from Weehawken to Walton (then only to Roscoe) kept running until mail contracts gave out in 1950; the service was suspended in September 1953. Although milk and coal trains were a memory, gray-yellow-and-orange diesel locomotives soldiered on, leading a dwindling number of ever-shorter freight trains.

By the mid-1950s, the reorganization court — which had been searching for a buyer for the road now truly earning another of its nicknames, the “Old & Weary” — was advocating total abandonment. Additionally, the U.S. government was suing for taxes and retirement payments that were in arrears, and New York state began planning on how best to use the O&W right of way for highway improvements.

The Range Rover Story

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

Big Car old account
Published 26 Feb 2019

To help me continue producing great content, please consider supporting me: https://www.patreon.com/bigcar

Help support my channel through these Amazon UK affiliate links:
Range Rover t-shirt: https://amzn.to/2WVHiLX
Land Rover baseball cap: https://amzn.to/2D4DP67
Range Rover diecast model car: https://amzn.to/2U3tTzk
Range Rover keyfob: https://amzn.to/2D4HmRQ

If Maria Von Trapp had driven a Range Rover, she’d have climbed every mountain, forded every stream and driven to every Austrian folk festival with the entire Von Trapp family singers in the back. Her and the Captain would have been able to roll up to the fanciest Salzburg dinner party in their finest glad rags after a day yodeling sweet nothings to each other on top of a mountain.

The Range Rover is the ultimate go-anywhere luxury SUV. It was born out of Rover’s desire to sell more cars in the USA, and its design was a complete accident. So how did a company known for saloon cars and agricultural off-roaders invent a car that created a brand-new market segment?

Much credit for this video has to go to aronline.co.uk for their excellent articles.

#RangeRoverClassic

QotD: The idiocy of tariffs

Filed under: Business, Economics, Government, Politics, Quotations — Tags: , , , — Nicholas @ 01:00

The entire point of trade, the very purpose of it, is to gain access to the imports. Those things which Johnny Foreigner makes cheaper or better than we do. To tax ourselves because he makes things cheaper or better than we do is simple idiocy. […] Over and above this stupidity there’s the depressing point that trade and trade protection really is a spiral. Here we’ve got the two largest economies on the planet tripping over themselves to punish their own citizenry for their temerity in buying foreign. And as we can see, it is a tit for tat spiral. A little bit of sabre rattling, a response, a larger amount of shouting, a response, then truly impoverishing levels of rock throwing into own harbours and off we go into making our own people less wealthy.

The true sadness here being that the spiral works the other way too. But hugely, vastly, more slowly. GATT was founded in 1947, it became, the process was transferred to, the WTO and it has taken them since then, that two generations, to reduce tariff levels to where they’re not really all that important in trade matters. Something that is being undone in just a couple of months of foolishness. GATT being something of a response to the economic demolition work done by Smoot Hawley of course.

Trade protection does spiral up and spiral down, the sadness being that here’s an asymmetry to the process. The reductions that make us richer take very much longer than the nonsenses that impoverish.

Tim Worstall, “The China, US, Trade War – It’s All Mutual On The Way Down As Well As Up”, Continental Telegraph, 2018-07-11.

November 2, 2020

Federal government to web giants: “BOHICA!”

Filed under: Bureaucracy, Business, Cancon, Government, Media — Tags: , , , , — Nicholas @ 03:00

Michael Geist provides an unauthorized backgrounder on the Canadian government’s quixotic attempt to shakedown the likes of Netflix for money to give to “struggling” Canadian media companies:

Canadian Heritage Minister Steven Guilbeault, 3 February 2020.
Screencapure from CPAC video.

Canadian Heritage Minister Steven Guilbeault is set to introduce his “Get Money from Web Giants” Internet regulation bill on Monday. Based on his previous public comments, the bill is expected to grant the CRTC extensive new powers to regulate Internet-based video streaming services. In particular, expect the government to mandate payments to support Canadian content production for the streaming services and establish new “discoverability” requirements that will require online services to override user preferences by promoting Canadian content. The government is likely to issue a policy direction to the CRTC that identifies its specific priorities, but the much-discussed link licensing requirement for social media companies that Guilbeault has supported will not be part of this legislative package.

These reforms mark the culmination of a dramatic reversal in government digital policy. After then-Heritage Minister Melanie Joly unveiled her 2017 digital cancon strategy that focused on market-based solutions and emphasized exports of Canadian culture, extensive lobbying gradually let to a major policy flip flop. The CRTC reversed its prior position on Internet streaming regulation in 2018 with a regulate-everything approach, the deeply flawed Yale report released earlier this year provided the blueprint for CRTC-led regulation, and Guilbeault jumped on board with a declaration that his top legislative priority was to “get money from web giants.”

On Monday, the government will undoubtedly line up the lobby groups that supported the reform to provide positive quotes, suggest reforms will lead to billions in new revenues, and claim the bill ensures regulatory fairness by requiring that everyone contribute. Yet much of the policy is based on fictions: that this levels the playing field, that there is a Cancon crisis, that discoverability requirements respond to a serious concern, that this will result in quick payments to the industry, that this is consistent with net neutrality, or that consumers will not bear the costs of reform.

None of this is true. But beyond those issues – each discussed in further detail below – this most notably represents a significant new source of speech regulation. We do not require government authorization to publish newspapers, blog posts, or to simply voice our views in a public forum. That we require governmental authorization in the form of licensing for broadcasters was largely justified in furtherance of cultural policies on the grounds of limited access to scarce spectrum. That justification simply does not apply to the Internet, no matter how many times Guilbeault refers to the inclusion of Internet companies within the “broadcast system.” This is not a matter of Internet exceptionalism. Laws and regulations such as taxation, competition, privacy, and consumer protection are all among the rules that apply regardless of whether the service is offline or online. But speech regulation by the CRTC should require a far better justification than the lure of “free money” from Internet companies.

October 29, 2020

How to fix the CBC

Filed under: Business, Cancon, Government, Media — Tags: , , , — Nicholas @ 03:00

… aside from cutting off the massive subsidies from the federal government, which would be my preferred solution if “nuke it from orbit” isn’t a viable choice. Let it sink or swim as a purely private media entity — I’d be betting on the “sink”, personally because they don’t currently have to compete thanks to their funding from the feds and are not noted for their quick adaptation skills. However, Peter Menzies isn’t quite as anti-CBC as I am:

In a recent piece here at The Line, I lamented the current status of the CBC. That’s easy enough to do, but it’s fair to ask what can actually be done to fix it. These ideas don’t provide all the answers but, implemented with conviction and speed, here’s where to start. Because there are some things that can be done, and relatively quickly, to revitalize the institution: the CBC may well be hell-bent on its own destructive dualism but clarifying its role and purifying its soul are still possible by getting it out of the advertising business and turning it into a proper public media.

Right now, the CBC is neither fish nor fowl. Sometimes, as with radio, it is a popular public broadcaster. At others, with its television channels, it fancies itself a commercial broadcaster, albeit a publicly-funded and relatively unpopular one. It plows both of those personalities into its commercial online operations and supplements them with reportage of the kind traditionally associated with newspapers. Like a creature of mythology, it shape-shifts through all of these roles as best suits its needs and moods.

On top of that, its OMG obsession with Trump’s America has drawn it far away from its content mandate to ensure Canadians learn about each other wherever they live in this vast and beautiful country. While its performance indicates otherwise, CBC’s purpose is not to secure a large audience share in the GTA or, in French, in Montreal, in order to earn more revenue. Nor is CBC News Network’s mandate to compete with CNN. The Corp’s raison d’etre, as defined in legislation, is to tell Canadians each other’s stories — even if the GTA and Montreal don’t care.

The only way to purify the CBC then, is to ban it — once and for all — from collecting advertising revenue from domestic consumption of its product. As its radio operations are already advertising-free this means no more ads on its TV or websites. Done. Finished.

October 27, 2020

QotD: Trader Joe’s

Filed under: Business, Food, Humour, Quotations, USA — Tags: , — Nicholas @ 01:00

Remember grocery shopping? You might not have done it in a while, at least in person. But one place that’s fun to shop is Trader Joe’s. Describing itself as “your neighborhood grocery store,” Trader Joe’s has some pretty good products at pretty good prices. It’s the place to go if you like Whole Foods but you can’t afford Whole Foods. The vibe is laid back, the staff is always friendly, there are fun little oddities you can’t get anywhere else, and it has inexpensive but almost always drinkable booze. Usually the biggest problem with shopping at TJ’s is navigating through the crowd of rude liberals who don’t think they need to be civil to other people in real life because they donate to Greenpeace and the Sierra Club.

Jim Treacher, “Trader Joe’s Apologizes for Being Racist”, P.J. Media, 2020-07-20.

October 22, 2020

Carbon taxes may be the most efficient way to address GHG emissions, but no government has implemented them properly

I was persuaded by the economic arguments in favour of a carbon tax to address the externaly of greenhouse gas emissions, but I’ve long been skeptical that governments would actually implement them in a way to minimize economic distortion. A report from the Fraser Institute this week shows I was right to be doubtful, as none of the 31 OECD countries in the study have managed to introduce some form of carbon pricing without political “tinkering” … rather than replacing inefficient regulations, taxes and mandates with the carbon tax, they’ve generally just added carbon pricing on top of existing rules, making the carbon pricing scheme merely another tax grab that fails to achieve the stated goals:

Most economists consider human-made greenhouse gas (GHG) emissions an unintended negative externality of production and consumption. A negative externality occurs when the effects of producing or consuming goods and services impose costs on a third party which are not reflected in the prices charged for said goods and services. In the context of GHG emissions, this negative externality is calculated using the “social cost of carbon,” which is the future damage to society (adjusted to present value) of one additional tonne of carbon emitted to the atmosphere today.

Governments have a wide variety of policy alternatives to address the negative externality of emissions depending on the degree and depth of the policy intervention. They can either mandate individuals and firms to change their behaviour through com­mand-and-control regulations, grant subsidies and tax credits to foster cleaner energy sources, or use market-based mechanisms to correct the misalignment of incentives. It is widely acknowledged that carbon pricing, one of these market tools, is the most cost-effective policy to reduce emissions, as it relies on price signals and trade to provide flex­ibility to economic agents as to where and how emissions mitigation occurs.

[…]

This report includes thirty-one high-income OECD countries, where each country has either implemented a carbon tax, an ETS [emissions trading system], or a combination of both pricing mechan­isms. Carbon taxes are being implemented in 14 of them whereas 25 of these countries have their emissions covered by an ETS. Our analysis finds that, on average, 74 percent of carbon tax revenues in high-income OECD countries go directly into their general budget with no earmarking for any specific expenditure, while 12 percent are ring-fenced for environmental spending, and only 14 percent for revenue-recycling measures. This means that most governments are using carbon taxes as a revenue-raising tool rather than a mechanism to internalize the negative externalities of emissions in a cost-effective man­ner. Additionally, the vast majority of ETS revenues are being used to artificially acceler­ate the use of renewable energy sources, infrastructure, and technology.

The study also finds that no high-income OECD country has used carbon pricing to repeal emission-related regulations, but instead have introduced new ones following the adoption of the carbon tax or the ETS. Emissions caps, mandated fuel standards, technology-based standards, and renewable power mandates are just some examples of these regulations that undermine the cost-effectiveness of carbon pricing mechanisms. The majority of high-income OECD countries have a combination of support schemes for renewable energy sources, carbon pricing tools, and command-and-control regulations.

Overall, no high-income OECD country is following the textbook model of an optimal carbon pricing system, undermining their theoretical efficiency by design and implementation.

October 17, 2020

Actually, his photo has that effect on me too …

… except that I still keep the beard. David Warren, on the other hand, is clean shaven:

“Jack Dorsey, Twitter and Square founder, in a London cafe in November 2014.” by cellanr is licensed under CC BY-SA 2.0

Every time I see a photograph of Jack Dorsey, I want to wash and shave. It is seldom that another human being has such an hygienic effect on me; especially one I have never personally met. Thanks to him, I may report to gentle reader that, up here in the privacy of the High Doganate (surrounded by jackhammers), I am quite clean-shaven this morning. I was able to resist the temptation to bathe in Dettol, but my shower was the next best thing.

I’m going out on a limb here. I am assuming my reader knows who Jack Dorsey is. (It’s not hard to find his picture.)
The boss of Twitter is among the “deep tech” executives who have, in a less ambiguous way than ever before, shut the accounts of the Trump campaign, within three weeks of a national election, and are blocking those (rather numerous) subscribers who are trying to forward the meaty revelations appearing in the New York Post. Those, incidentally, unambiguously show that one of the presidential candidates (Biden, of all people) is seriously fraudulent and corrupt. Who’d have guessed it? (Well, I did.)

Now, when I write “deep tech,” some reader will accuse me of touting a conspiracy theory. I use this expression on the analogy of “deep state.” Curiously, I don’t think this is a conspiracy at all. In the District of Columbia, where the bureaucratic institutions of the Merican Nanny State are chiefly located, Democrats routinely take well over 90 percent of the vote. Republicans do not necessarily finish second, however. That the labour pool for these institutions is overwhelmingly “progressive,” is something I infer.

Ditto for Silicon Valley. The residents do not need to conspire, although the speed at which identical editorial decisions are reached, is amazing. This I attribute to their electronic hardware.

Some seven years ago, under the influence of well-intended friends, I did a three-month experiment of “being on Twitter.” They said it would immensely increase my “hits,” and it did — while dramatically decreasing attention to them. I was flattered by all the fan-mail I received, because I am a shallow person, but when the three months were up I got off. For I do not covet a mass audience, or that kind of fame. Engaging in live-time battles of wits with other Twitterers is fun for a while, but sooner or later one recovers one’s self-respect. Or at least some people do.

October 8, 2020

Fallen Flag — The Pacific Electric Railway

Filed under: Business, History, Railways, USA — Tags: , , , — Nicholas @ 03:00

This month’s Classic Trains featured fallen flag is southern California’s iconic Pacific Electric Railway Company, whose streetcars, interurbans, and buses served the vast area in and around Los Angeles and San Bernardino from 1901 until the passenger services were sold off in 1953. The electric service was converted to bus and the last electric rail line was discontinued in 1961. At its peak in the 1920s the “Red Cars” service was said to be the largest electric railway system in the entire world.

G. Mac Sebree covers the origins of the line in the late nineteenth century:

The story begins in 1895, when a line was completed from Los Angeles to Pasadena; a mere 10 years later, the system was virtually complete. To a great degree, PE was the brainchild of Henry Huntington, nephew of one of the Central Pacific’s “Big Four,” Collis P. Huntington. An active real-estate promoter, Henry needed the Big Red Cars and the transportation they provided to help sell lots and homes in the hinterlands.

His uncle’s Southern Pacific took control of the PE in 1911 in a deal that left the Los Angeles Railway, the narrow-gauge intracity system, in the nephew’s hands. The PE was built to standard gauge, and SP saw a brilliant future in freight for the interurban.

Pacific Electric route map.
Original data from http://sharemap.org/public/Los_Angeles_Pacific_Electric_Railways_(Red_Cars) via Wikimedia Commons.

Interurbans were not considered Class I railroads (or any other class — they were not “steam railroads”), but from the very start, PE was big business. The California Railroad Commission said the property was worth $100 million in Depression dollars. Atypically for an interurban, the system served as a gathering network for carload freight shipments from citrus groves, manufacturing plants, oil refineries, warehouses, and the harbor at San Pedro. The three line-haul railroads serving southern California — Santa Fe, Union Pacific, and especially SP — depended on the Pacific Electric to some degree.

Yet in its heyday, PE carried huge numbers of passengers. As late as 1953, 50 percent of its revenue came from riders — but absolutely none of its profit. An all-time list shows that PE operated 143 distinct passenger routes. Despite the so-called “Great Merger of 1911,” in which local and interurban services were supposedly separated, the heaviest PE passenger lines largely served the L.A. urban area. An example was the street-running L.A.–Hollywood–Beverly Hills line, in which two-car trains rumbled down Hollywood Boulevard at 10-minute intervals.

At one time or another, PE single-truck Birney cars plied local lines in Pasadena, Long Beach, Santa Monica, Redlands, Santa Ana, and San Pedro, although the 1920s were not far along before management sought to sell off or abandon these albatrosses.

After World War 2, the writing was on the wall for the Red Cars, as urban expansion and greatly increased car ownership cut at the economic basis for rail passenger service in southern California, especially as the new freeways were built.

After the war, though, things went downhill rapidly. As soon as buses were available, Pacific Electric began wholesale rail passenger-service abandonments. The new freeways were regarded as the rapid transit of the future. PE President Oscar Smith saw one possibility for saving rail service — if the state would pay. Just before the war, a short section of freeway between Hollywood and the San Fernando Valley had been built, with the PE tracks relocated to the center of the new highway.

Why not replicate this all over the basin? The PE would cooperate, but public officials turned a deaf ear, and that was that. Freight service, meanwhile, prospered, but by the mid-1950s, PE began replacing its electric locomotives and box motors with diesels (a few steam locomotives also had been used during the war). Over the years, PE rostered about 100 electric locomotives and at least 75 box motors — big business, indeed.

In 1953, PE sold its passenger service (four rail lines out of the 6th and Main station, two out of Subway Terminal, and many bus lines) to Metropolitan Coach Lines. The Metropolitan Transit Authority, first formed in 1951, bought MCL on March 3, 1958, and the end for electric passenger service came in 1961. SP continued the freight work with diesels, and merged PE away on August 13, 1965. Today under the Union Pacific shield, a good bit of the old PE freight lines remain in service, unique survivors, busier than ever.

A veteran Pacific Electric “Big Red Car” already lettered for successor Metropolitan Coach Lines in the 1950s.
Photo by Voogd075 via Wikimedia Commons.

October 5, 2020

Winchester Lever Action Development: Model 1866

Filed under: Business, History, USA, Weapons — Tags: , , , , — Nicholas @ 02:00

Forgotten Weapons
Published 7 Jun 2017

While the Henry Repeating Rifle had been an serious leap forward in firearms capability, it was not without problems. The biggest single weakness of the Henry was its magazine. The tube magazine was open to dirt and debris, the follower could easily come to rest on the shooter’s hand or anything used as a rest and stop the weapon from feeding, and the while system was rather prone to being damaged.

These problems would all be addressed with the addition of Nelson King’s new loading gate idea, which allowed Winchester to omit the exposed follower entirely, solving a bunch of complaints all at once. The new system was more durable, more reliable, and allowed the rifle to be loaded without the awkward manipulation required by the Henry. The King improvement also allowed the addition of a wooden handguard, which was a welcome addition — it does not take very many black powder rounds for a barrel to become uncomfortably hot to the touch.

At the same time that these improvements were being made, company politics were taking shape to end Benjamin T. Henry’s involvement with the company. Henry attempted to take over ownership of the company because he felt he was not profiting as much as he should, but he had assigned his patent rights to Oliver Winchester in exchange for his contract to manufacture the guns. As a result, Winchester was able to create a new company (the Winchester Repeating Arms Company) with full rights to the design patents and sideline Henry.

The 1866 rifle, which was formally called simply the Winchester Repeating Rifle would continue to use the .44 Henry Rimfire cartridge, but would be made in a wider variety of configurations than the Henry had been, including carbine, rifle, and musket barrel lengths. It would prove to be a very popular rifle, and opened the path to further improvement, as it put the Winchester company on excellent financial footing.

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October 2, 2020

QotD: Price “gouging” in emergencies

Filed under: Business, Economics, Liberty, Quotations — Tags: , , , , — Nicholas @ 01:00

Consider price fixing on goods as necessary as water. During the Texas floods of last year, the price of water rose to heights of $99 per case, from the average of $5 per case. The cruelty of a store owner to do this during a time of emergency offends us all, but to people that think empathetically, it’s especially offensive. This was counterbalanced by Puerto Rico that had strict price controls on water.

In spite of the fact that per capita, there were more emergency responders sent to Puerto Rico and more funds sent to Puerto Rico than Texas, their problem persisted while the Texans very quickly received aid. The answer to the question why is: because of price fixing.

The free market, in seeing the price jump recognized the shortage of supply and responded quickly supplying Texans with an abundance of water cases because of the excessive profit margins – the increased supply eventually caused market competition and the price quickly dwindled to a more reasonable price.

Meanwhile, the market ignored Puerto Rico because the market was asked to ignore them by their own leaders through price fixing. Texans received water, quickly, and at reasonable prices, while Puerto Ricans didn’t.

If water is selling for $99/case, by the end of the day someone will have airlifted water into the region at $50/case, and the next morning water will be selling for $30/case. This will go on for a day or so, and the water crisis is quickly resolved. This was never permitted to happen in Puerto Rico.

Brandon Kirby, “Why Women Generally Aren’t Libertarian”, Being Libertarian, 2018-06-27.

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