So what happened?

Essentially, the railroads became hostage to free markets in which little room exists for cooperation among various interestsin a rail environment where working together is a golden rule. Railroads demand a work force that can maintain a meticulous infrastructure consistently throughout vast regions.

Bad timing apparently was one of the reasons that the United States didn't build an inter-city electric rail service. Steam locomotives were replaced by diesel in America earlier than in Europe. Americans replaced steam with diesel locomotives during World War II while Europe was being devastated by the bombings and barely held on to their steam infrastructure. Once the war was over, the new electric technology was available, too late for the United States' newly built railroad, but just in time for rebuilding in Europe.

Diesel-powered electric engines came to be used in the United States in a locomotive developed by General Motors. Since then, inter-city trains haven't changed much in this country, and the diesel system is used to carry freight and passengers from city to city.

Inter-city electric rail does exist in this country, however, and in the Northeast is being expanded. Recently, the commuter lines of the Northeast were electrified as part of government-funded extension of the Washington D.C.-to-Boston line where electric rail was installed from New Haven, Connecticut to Boston.

But in the U.S. electrification was based on economic considerations. If electrification occurred, interest rates for financing it would go up because the railroads would show a lower profit margin. In Europe, and most notably in the Soviet Union, electrification and other modernization occurred at a rapid pace if for no other reason than to show the opposing side of the Cold War that a communist government could be modern and prosperous.

What About Privatization?

Amtrak is broke. 'It's heavily subsidized and not sustainable,' said Kleindienst. 'Some or all of its funds are in jeopardy.'

According to the Congressional Research Service, during the last 10 years Amtrak's revenue from inter-city passenger service, after adjustment for inflation, was flat, and Amtrak ridership declined about 10 percent, from 5.9 billion passenger-miles to 5.3 billion passenger-miles.

Congress has appropriated funds to pay for a group, the Amtrak Reform Council, to discuss the future of the rail system. And if the Republican-dominated council has its way, trains and rail lines in America would be up for grabs. But the AFL-CIO has already sought an injunction against the group.