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The Place of Railroads in an Era of Economic and Environmental Reform, 1966-80

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The Place of Railroads in an Era of Economic and Environmental Reform, 1966-80 Switching Tracks: The Place of Railroads in an Era of Economic and Environmental Reform, 1966-80 A thesis presented to the faculty of the College of Arts and Sciences of Ohio University In partial fulfillment of the requirements for the degree Master of Arts Benjamin W. Wollet March 2012 © 2012 Benjamin W. Wollet. All Rights Reserved. 2 This thesis titled Switching Tracks: The Place of Railroads in an Era of Economic and Environmental Reform, 1966-80 by BENJAMIN W. WOLLET has been approved for the Department of History and the College of Arts and Sciences __________________________________________________ Paul C. Milazzo Associate Professor of History __________________________________________________ Howard Dewald Interim Dean, College of Arts and Sciences 3 ABSTRACT WOLLET, BENJAMIN W., M.A., March 2012, History Switching Tracks: The Place of Railroads in an Era of Economic and Environmental Reform, 1966-80 (170 pp.) Director of Thesis: Paul C. Milazzo To stave off the collapse of the feeble and bankrupt U.S. railroad industry in the 1970s, federal policymakers enacted major regulatory reforms. The creation of Amtrak and Conrail, significant rehabilitation projects, and an overhaul of transportation laws enabled the railroads to pare down their lines and retool their businesses. Each of these rapid developments in economic and business policy also reshaped natural and built landscapes. Using congressional and executive documents and secondary materials, this thesis shows how environmental regulations, historical preservation, and public awareness of ecology and resource scarcity informed the process of railroad reform. The environmental impact statement redefined how federal bureaucrats approached railroad infrastructure projects and line abandonment, while new pollution rules and energy- efficiency programs affected the rails’ biggest customers, like coal and manufacturing. Two important trends in postwar domestic policy—new social regulation and economic deregulation—intersected to jumpstart U.S. railroading in the 1970s. Approved: _______________________________________________________________ Paul C. Milazzo Associate Professor of History 4 ACKNOWLEDGMENTS The guidance and support of many individuals and institutions helped me create this piece of scholarship. A grant from the Gerald R. Ford Presidential Foundation allowed me to conduct research at the Ford Library in Ann Arbor, Michigan. Archivists Bill McNitt and Jeremy Schmidt were instrumental as I prepared my project and pored through documents. The entire library staff made my research experience a true pleasure. A generous fellowship from the Contemporary History Institute introduced me to the rich resources of Ohio University. The faculty of the History Department deepened my understanding of the past and refined my approach to historical methods and inquiry. Paul Milazzo inspired me to search for the interconnections between environmental change and public policy. Katherine Jellison, Geoff Buckley, and Chester Pach all helped me hone my writing and place my work in a broader historical context. My professors and mentors at Ohio Northern University also deserve my sincere thanks. John Lomax taught me how to conduct historical research and think critically. Perhaps one day I will write with his clarity and vigor. Ellen Wilson, Rob Alexander, Russ Crawford, Pat Croskery, and others gave me the finest undergradutate education. For their camaraderie, inspiration, and late-night conversations, I thank my peers in Athens and Ada. Andrew Magyar, Rose Emrich, Morgan Burke, and Sebastian Hurtado Torres continue to awe me with their intellect and talent. And, simply put, Doug Chapel and Justin Purl are the best friends one can have. Lastly, I thank my parents, Kathie Wilkens and Joe Wollet. I am forever indebted to their guidance, patience, care, and love. 5 TABLE OF CONTENTS Abstract...........................................................................................................................3 Acknowledgments...........................................................................................................4 List of Figures.................................................................................................................6 List of Abbreviations.......................................................................................................7 Chapter 1: Introduction The Junction of Environment and Economy in U.S. Railroading................................8 Chapter 2: The 19th-Century Rail Network and Regulatory Regime Endure................... 18 Competition and Decline .........................................................................................23 Stagnation and Doubt .............................................................................................. 28 The Saga of Penn Central ........................................................................................32 Chapter 3: The Emergence of Environmental and Preservation Regulation, 1966-76 ..... 36 Analyzing the Place of Railroads .............................................................................37 Preservation and the Perception of Rail....................................................................42 The National Environmental Policy Act of 1969......................................................53 The DOT and Environmental Research....................................................................62 Land Use and the Railroads .....................................................................................67 Pollution and Energy Consumption..........................................................................70 “But he doesn’t care about the environment” ...........................................................76 Government Support for U.S. Railroads...................................................................84 Line Abandonment: The Ecology of Transportation................................................. 87 The Urban Railroad .................................................................................................94 Chapter 4: Reassessing Economic Regulations and Federal Agencies, 1970-80.............98 The Principles of Economic Regulation...................................................................99 Sounding the Call for Change................................................................................ 108 The Challenge of Reforming the ICC..................................................................... 112 Regulation and the DOT........................................................................................ 121 Amtrak: Passenger Rail Clings to Life................................................................... 125 Early Reform Attempts and 3R.............................................................................. 133 Conrail: The Bridge from 3R to 4R........................................................................ 138 4R: The Ford Administration in the Switchyard..................................................... 143 Staggers: Moving Beyond 4R ................................................................................ 150 “New challenges, huge opportunities” ................................................................... 155 Bibliography ............................................................................................................... 161 6 LIST OF FIGURES Figures 1. Rusting rail bridge in Cleveland............................................................................... 17 2. 1890 map of Nebraska rail lines............................................................................... 20 3. Abandoned rail tunnel near Zaleski, Ohio................................................................35 4. Repurposed passenger station in Kalamazoo............................................................44 5. Art and architecture at Cincinnati Union Terminal................................................... 47 6. Altoona Railroaders Memorial Museum ..................................................................49 7. Intermodal freight yard in Cincinnati ..................................................................... 143 8. Gerald Ford and Bill Coleman, February 1976....................................................... 145 7 LIST OF ABBREVIATIONS 3R Regional Rail Reorganization Act of 1973 4R Railroad Revitalization and Regulatory Reform Act of 1976 AAR Association of American Railroads CAA Clean Air Act of 1970 CAB Civil Aeronautics Board CEQ Council on Environmental Quality DOT Department of Transportation EIS environmental impact statement EPA Environmental Protection Agency FRA Federal Railroad Administration GRFL Gerald R. Ford Library HSR high-speed rail ICC Interstate Commerce Commission LDL light-density line N&W Norfolk & Western Railroad NEC Northeast Corridor NEPA National Environmental Policy Act of 1969 NIMBY “not in my backyard” NLUPA National Land Use Policy Act PC Penn Central Railroad PRR Pennsylvania Railroad SCRAP Students Challenging Regulatory Agency Procedures STB Surface Transportation Board TES Environment, Safety, and Consumer Affairs (DOT) TEU Environment and Urban Systems (DOT) UP Union Pacific Railroad USRA United States Railway Association 8 CHAPTER 1: INTRODUCTION The Junction of Environment and Economy in U.S. Railroading Members of the board of Penn Central met in Philadelphia on the morning of February 1st, 1968 to discuss their brand new firm, which overnight had become the largest surface
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