Thursday, February 16, 2012

Amtrak

The National Railroad Passenger Corporation, doing business as Amtrak (reporting mark AMTK), is a government-owned corporation that was organized on May 1, 1971, to provide intercity passenger train service in the United States. "Amtrak" is a portmanteau of the words "America" and "track". It is headquartered at Union Station in Washington, D.C.

All of Amtrak's preferred stock is owned by the U.S. federal government. The members of its board of directors are appointed by the President of the United States and are subject to confirmation by the United States Senate. Common stock was issued in 1971 to railroads that contributed capital and equipment; these shares convey almost no benefits but their current holders declined a 2002 buy-out offer by Amtrak.

Amtrak employs more than 20,000 people. It operates passenger service on 21,200 miles (34,000 km) of track primarily owned by freight railroads connecting more than 500 destinations in 46 states and three Canadian provinces. In fiscal year 2011, Amtrak served 30.2 million passengers.

Amtrak's origins are traceable to the sustained decline of private passenger rail services in the United States from about 1920 to 1970. In 1971, in response to the decline, Congress and President Richard Nixon created Amtrak. The Nixon administration secretly agreed with some railroads that Amtrak would be shut down after two years. After Fortune magazine exposed the manufactured mismanagement in 1974, Louis W. Menk, chairman of the Burlington Northern Railroad remarked that the story was undermining the scheme to dismantle Amtrak. Though for its entire existence the company has been subjected to political cross-winds and insufficient capital resources, including owned railway, Amtrak's ridership has maintained consistent growth.

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