Railroads: A Model of Inefficiency

U.S. management is supposed to be able to solve almost any business problem once it is identified. That is certainly not the case with the commuter railroads of the East, which have been going from bad to horrendous. Private enterprise has little interest in keeping up the money-losing commuter service.

A Philadelphia city official charges that the Penn-Central, for example, has no budget for maintaining the 248 cars that haul 32,500 riders daily into that city. The railroad denies it, but is un able to supply any budget figures. Bos ton's creaky commuter lines — the New Haven and...

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