> it's worth pointing out that nearly all transportation projects from the "old days" around the world were done by private companies, and often met a swift end in bankruptcy... Only our sepia-colored glasses and the survival bias of remaining parts makes it look like people back then had it figured out, and we don't.
This is true, but only part of the story. The private railroads (and indeed much internet infrastructure) had two phases. In the first, early entrants made big profits by picking the low hanging fruit (i.e. most profitable opportunities) in a new market.
This created investor euphoria just as the opportunities for "easy" profits were drying up. So things turned towards speculative, even fraudulent investments that left the investors out of pocket. But, as you point out, even the second phase left some infrastructure on the ground that could be operated at a profit once bought at firesale prices.
In NYC specifically, the problem was the city government introduced price caps that made the privately owned lines unprofitable, then refused to raise them. So, of course the trains went out of business. It was set to 5 cents in 1904 and remained there for
over 40 years. Not even the lowest hanging fruit could survive such a thing.
Yeah I believe you, I had taken temp-dude's comment to be more about railroads in general and not suburban railways or NYC in particular. And those are different, always were more government related.
This is true, but only part of the story. The private railroads (and indeed much internet infrastructure) had two phases. In the first, early entrants made big profits by picking the low hanging fruit (i.e. most profitable opportunities) in a new market.
This created investor euphoria just as the opportunities for "easy" profits were drying up. So things turned towards speculative, even fraudulent investments that left the investors out of pocket. But, as you point out, even the second phase left some infrastructure on the ground that could be operated at a profit once bought at firesale prices.