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Well, now we know that Ken thinks the earth is flat. His *example* to prove me wrong is itself a faulty premise.  He forgets that most captive customers are either located on the mainlines, or are former branch customers who now must truck their product to the mainline (and as such are still captive to that railroad, albeit with higher initial shipping costs added on).  There are little if any additional fixed cost allocations, merely variable costs, yet the customers are paying a rate that far exceeds those variable costs.  Meanwhile, the railroads are bringing in imported goods are rates that are near or under the STB's 180% R/VC standard as they compete irrationally for double stack business, which means that such moves are not covering both variable costs and an allocation of fixed costs.  Somewhere along the line, someone somewhere has to make up the deficit to keep the tracks in decent running condition, and that someone is those who pay the rates that exceed 180% of R/VC. Only a purposefully blinded individual would look at that disparity and not call that cross subsidization.
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