Technological Change and Internal Economies in Railroad Transport: Some Implications for the Great Plains

The failure of the railroads in recent decades to maintain either their relative position among the transportation industries or their absolute capital investment does not necessarily presage a continuing withdrawal of resources from the industry. Not only do reported rates of return generally understate the actual rates, but also recent innovations have improved expectations with respect to the future. The unit train, which has both improved service and markedly reduced costs per ton-mile, is of special relevance to a region heavily dependent upon the exportation of grain to distant markets. Furthermore, owing to the comparatively low traffic density of the railroads traversing the Great Plains, the merger of parallel routes would also appear to promise operating economies to an extent not realizable in other sections of the country.