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To cover its costs and add to the bottom line, a product line (passenger train) has to have revenues to cover its direct costs, indirect costs, and allocated overheads in deriving an operating profit. Revenues would have to be sufficient to cover all administrative costs (direct and allocated) to arrive at net income before depreciation, interest, and taxes. And they would have to be sufficient to cover these variables.   The railroads were amongst the first corporations to implement sophisticated accounting and finance systems in the U.S.  I am reasonably sure that they had the ability to gather, process, and produce meaningful financial statements for each passenger train that they operated.  I don't know how much of the information was made public, but they had it.  At one time, as I remember the argument, opponents of train-off petitions argued that passenger trains lost money according to ICC accounting rules, but did not lose money or not as much money as appeared to be the case under GAAP rules.
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