At the same time, railroads carried a substantial tax burden. A World War II–era excise tax of 15% on passenger rail travel survived until 1962.[24] Local governments, far from providing needed support to passenger rail, viewed rail infrastructure as a ready source for property tax revenues. In one extreme example, in 1959, the Great Northern Railway, which owned about a third of one percent (0.34%) of the land in Lincoln County, Montana, was assessed more than 91% of all school taxes in the county.[15] To this day, railroads are generally taxed at a higher rate than other industries, and the rates vary greatly from state to state.[25]
Railroads also were saddled with antiquated work rules and an inflexible relationship with trade unions. Work rules did not adapt to technological change.[15] Average train speeds doubled from 1919 to 1959, but unions resisted efforts to modify their existing 100 to 150 mile work days. As a result, railroaders' work days were roughly cut in half, from 5–7½ hours in 1919 down to 2½–3¾ hours in 1959. Labor rules also perpetuated positions that had been obviated by technology; for example, requirements that diesel locomotive have a "fireman" aboard at all times, even in switching yards.[citation needed] Between 1947 and 1957, passenger railroad financial efficiency dropped by 42% per mile.
Today, the burden of nascent railroad worker pensions, including those of freight railroad workers, are financed by Amtrak, regardless of whether such workers were ever employed by Amtrak or worked in passenger railroad service. In effect, Amtrak subsidizes the pensions of thousands of railroad workers who would otherwise not receive any pension.
Railroads also were saddled with antiquated work rules and an inflexible relationship with trade unions. Work rules did not adapt to technological change.[15] Average train speeds doubled from 1919 to 1959, but unions resisted efforts to modify their existing 100 to 150 mile work days. As a result, railroaders' work days were roughly cut in half, from 5–7½ hours in 1919 down to 2½–3¾ hours in 1959. Labor rules also perpetuated positions that had been obviated by technology; for example, requirements that diesel locomotive have a "fireman" aboard at all times, even in switching yards.[citation needed] Between 1947 and 1957, passenger railroad financial efficiency dropped by 42% per mile.
Today, the burden of nascent railroad worker pensions, including those of freight railroad workers, are financed by Amtrak, regardless of whether such workers were ever employed by Amtrak or worked in passenger railroad service. In effect, Amtrak subsidizes the pensions of thousands of railroad workers who would otherwise not receive any pension.
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