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Amtrak's "shadow board" reports By Frank N. Wilner
Such a response could have been made by Amtrak's board of directors and
senior management after the congressionally-created Amtrak Reform Council
last month issued its first assessment of the 29-year-old,
government-owned, heavily subsidized passenger carrier. The ARC-perceived
by some as an intrusive shadow board-said that Amtrak management is
ineffective, financial statements are clothed in smoke and mirrors, and
labor productivity is lagging.
But rather than attack the messenger or deny the message, Amtrak Chairman
and Wisconsin Governor Tommy Thompson reacted calmly, accentuated the
positive, and demonstrated why he is Amtrak's most precious asset. Rudyard
Kipling said it best, even though he had another Tommy in mind: "For it's
Tommy this an' Tommy that an' check 'im out, the brute! But it's savior of
'is country, when the guns begin to shoot."
Thompson offered a studied response to the ARC report's condemnations,
graciously assuring the ARC that many of its recommendations, such as
better identifying risks and alternative strategies and making the
profitable Mail & Express operation a stand-alone business unit, have
merit.
Thompson also convinced the ARC to retreat from a draft-report desire that
Amtrak divest itself of maintaining and dispatching the federally-owned
Northeast Corridor. "We are the only entity that in a sense holds this
vital artery together," said Thompson, explaining that only Amtrak
operates along its entire length between Washington, D.C., and Boston and
is the only railroad authorized to operate faster than 110 mph.
The ARC's members largely reflect the politics of House and Senate
Republicans hostile to government ownership, yet reluctant themselves to
cut the railroad's funding or eliminate routes. Lawmakers have deputized
others to undress, observe, poke, pinch, and prod Amtrak as if it were a
guinea-pig patient at the mercy of a class of medical students. Since
1995, there have been nearly 20 oversight hearings by five different
congressional committees, nearly 12 reviews by the General Accounting
Office, two reports by the Department of Transportation's inspector
general, and separate inquiries by congressional staff investigators and a
congressionally created "Blue Ribbon Commission." No private sector firm
could function efficiently with such federal meddling.
Yes, Congress expects Amtrak to cover its operating costs from the farebox
by September 2002. But if Amtrak, with the permission of Congress, bends
traditional accounting rules slightly so some maintenance costs and
equipment depreciation are excluded from calculations for the goal to be
met, it seems more reasonable that the ARC should rejoice in the progress.
Voters want Amtrak's 22,000-mile, 45-state, 530-station national passenger
train network expanded. To the credit of Amtrak's board and senior
management, they have embarked on a politically-risky mission of a
market-based network analysis to identify routes making no economic sense.
Although the ARC criticizes stagnant ridership, it makes no recommendation
on how Amtrak might better compete with subsidized airlines engaging in
predatory pricing or highway driving where gasoline taxes don't reflect
the full costs of government-funded highways, police presence, or military
defense of petroleum shipping lanes.
And whether Amtrak failed to negotiate the "best" labor agreements, ARC
cannot say. As National Mediation Board member Frank Duggan said, "The
best solution to any problem is what the parties agree to." It may be so
that Amtrak workers earn more than counterparts at non-union commuter
airlines or those in the motor coach industry, but they also earn less and
work under fewer work-rule restrictions than unionized employees of
commuter and freight railroads. As Deputy Federal Railroad Administrator
Jack Wells once inquired, "Do we want Amtrak to precipitate a battle with
its unions that will shut the railroad down?"
Again to quote from Kipling, objectives are best achieved "if you can keep
your head when all about you are losing theirs and blaming it on you."
Keeping their heads and staying the course are precisely what the Amtrak
board and its senior management are doing. They deserve more credit than
was accorded by the ARC.
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Copyright © 2000. Simmons-Boardman Publishing Corp. |
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