Beginnings.

Amtrak, the public/private corporation formed to operate passenger rail service in the United States, went into operation on 1 May 1971. Created by the National Railroad Passenger Act of 1970, Amtrak was made necessary by the bankruptcy in June 1970 of the Penn Central system. The Penn Central had been formed in 1968 through the merger of the New York Central and Pennsylvania railroads. Since its founding in 1971 Amtrak ridership has more than doubled, though the corporation has not been able to forgo its government subsidy.

Subsidies.

Subsidized by the federal government — 36 percent of its budget in 1986 — Amtrak was to provide nationwide passenger rail service. Its route system of over twenty-four thousand miles, including over twenty-six hundred miles of track that it owns, took over all noncommuter rail service in the United States. Amtrak began operation with the aging fleet of rail equipment, many without heating and air...