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On a Long Train Trip, Rare Pleasures Return
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<p>I visit our local public library two or three times a week. A better name for it would be public information center, since many of the people who go there use the library's computers or other information sources as opposed to checking out a book. </p> <p>If Amtrak had not operated its long distance passenger trains in FY2010, it would have had avoidable cost of $575.5 million before depreciation and interest. Outside of the NEC Amtrak's depreciation and embedded interest is relatively low. These items apply only to its equipment, which in most instances is fully depreciation or nearly so. The savings during the first year of discontinuance would be less than the potential savings because of severance packages and associated discontinuance costs.</p> <p>Moreover, if Amtrak had increased its average ticket price by $12.95 for its short corridor services, or $7.41 spread across the NEC and short corridor services, it would have broken even before depreciation, interest, and miscellaneous charges, assuming application of the NEC operating profit to the short corridor losses. And Amtrak would have begun to look like a real business.</p>
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