Railroads and the need for National Socialism

Now for something not election related. Yeah!

We often talk about the National part of National Socialism: the community, the race, the Volk; White heritage and culture. What often gets neglected, however, is the Socialist part of the equation.

This is understandable.

As Americans, we have an inherent distrust of the Socialism. We’ve been taught it is akin to Communism where everything is taken from the masses and given to an elite few; it evokes images of ass-hats like Bernie Sanders who talk of equality while jetting between one of his three houses; it is seen as the antithesis of the American Dream® (BlackRock Investments, all rights reserved).

It’s more acceptable in Europe, of course, where they have a long tradition of Socialism in various forms and are more accepting of centralized government control of industry and commerce. But here in ‘Merica, we worship “Independence” and “Rugged Individualism”, the lone cowboy riding over the mesa toward the setting sun. We nod knowingly when someone quotes Reagan from a 1986 news conference when he says: “The nine most terrifying words in the English language are ‘I’m from the government and I’m here to help.’” It is the American story. Go west young man. And at one point in time, a person really could pack-up and ride off to chase the dream on their own terms (never mind the Comanches and other life-threatening challenges). Outliers aside, those days are long gone.

The facts give lie to the myth. Over two-thirds of the material wealth in this country is controlled by an elite class making up less than ten-percent of the population. Let that sink in for a minute and try to grasp some of the implications.

In our so-called “free”capitalist society, we all experience some token of socialism. To name just a few: welfare, social security, medicare, medicaid, public schools, public water companies, public infrastructure spending, public transportation, public parks, and, of course, the military (although this last is debatable).

However, whereas true socialism is concerned with “the greater good”, putting the welfare of all above the selfish interests of the few, American socialism is backwards, consisting of top-down crumbs from the table of the ruling elite. Just enough socialism sprinkled into the American cake to keep the masses alive, but perpetually impoverished. A sop to ward off the spectre of revolt.

In short, socialism in America doesn’t go far enough.

A recent article in Washington Monthly by Phillip Longman called “Train Drain” offers a telling example. He explains in detail how the deregulation of the rail system in 1980 has, over time, destroyed the industrial capacity of this nation while providing vast profits for hedge funds and modern-day robber barons. I recommend reading the article in full. But for our purposes, it serves to touch on some of its key points to illustrate why National Socialism, emphasis here on the Socialism, might be the best answer to an increasingly dangerous problem.

We take trains for granted. We see them running parallel to the freeway while we’re driving, or blocking our intersections from time to time, and don’t give them a second thought. But for industries large and small, rail is vital. In order to produce goods, manufacturers require raw materials.

Once manufactured, these goods have to get to markets both domestic and overseas. Ranchers, too, rely on rail to bring the feed they need for their livestock. Farmers have to get their crops to national and international markets.

Many of these materials and goods are simply too heavy, or shipped in too great a volume, to be efficiently transported by anything other than train. Because of this dependence on rail transport, whoever controls the trains ultimately controls the industrial capacity of this nation, directly impacting the American worker. No product to produce, no job.

As railroads spread across the nation in the 19th century, so too did American prosperity. Many other countries eventually had rail systems, but in America in particular, it developed in such a way as to link small and mid-sized towns together, giving independent farmers and ranchers access to larger or more distant markets.

Loading cattle on the train at a Texas stockyard.

But the nature of railroads, with it’s capital requirements, is such that it has always lent itself to control by big money. According to the article: “By the late 19th century, even proponents of laissez-faire had come to realize that without regulation railroads threatened to distort the workings of the free enterprise system. In most places, a single railroad held a local monopoly, which it used to extract wealth from the community and retard its economic development. Meanwhile, in places served by more than one railroad, typically large mid-Atlantic cities, the competing carriers often engaged in price wars, giving those places an unfair and unearned economic advantage over rural America and midsize heartland cities.”

The Modern Colossus of (Rail) Roads ~ William Henry Vanderbilt, president of the New York Central Railroad and several other railroads, Cyrus West Field, of the New York Elevated Railroad Company, and Jay Gould, of the Union Pacific Railroad and other western railroads.

To address this problem, states began regulating the railroads as early as the 1860s, and in 1887, Congress passed the Interstate Commerce Act which served to level the playing field between rail customers by preventing price gouging and other monopolistic practices. “Shippers, regardless of their market power, had to pay roughly the same price per ton and per mile for transporting the same kinds of goods for the same distance. Where railroads lost money on low-volume and high-cost services, such as serving a grain mill at the end of a branch line used by local farmers only at harvest time or running local passenger trains, they were expected to make up the difference from their high-profit routes and lines of business.”

It wasn’t a perfect system by any means, but “…this regulatory structure was nonetheless critical to ensuring fair terms of competition between different businesses and different places and thereby helped launch America as a broadly prosperous economic powerhouse.” This process was called “common carriage” and it more or less worked.

Then it all got tossed out the window in 1980.

In the midst of an energy crisis and a precipitous decline in American manufacturing, and no doubt at the insistence of lobbyists, President Carter signed the Staggers Rail Act, essentially gutting the power of the Interstate Commerce Commission and the provisions of the Interstate Commerce Act.

President Peanut signing the Staggers Act, October 14, 1980

It is a classic example of the road to Hell being paved with good intentions: the manufacturing decline was putting strain on many railroads. Congress feared having to take them over and lawmakers hoped that deregulation would forestall this and improve their viability.

It worked only too well. Large railroads gobbled up under-performing or bankrupt rail lines, creating monopolies, which then became highly profitable by shutting off access to smaller markets and price gouging.

Where there’s money to made it doesn’t take long for the financial vultures to circle, and ““activist” investors … gained effective control over most rail management. Their first order of business was to install new managers who would drive up short-term profits through ruthless cost cutting and downsizing.

The most notorious of these was the hard-charging railroad executive E. Hunter Harrison, who pioneered a new business model called “precision-scheduled railroading,” or PSR, that has now been almost universally adopted by the nation’s major railroads. Despite its label, PSR has little to do with running trains on time. Instead, it mostly involves the common private-equity playbook of driving up share prices by downsizing workforces, selling off assets, and degrading services while raising prices. It is estimated that Harrison, who was affectionately known as the “trains whisperer” by Wall Street, created $50 billion in increased returns to shareholders during his tenure as CEO of four major North American railroads.” He’s also proof that greed and avarice are not the exclusive province of Jews.

E. Hunter Harrison

By raising shipping prices thirty-percent faster than the rate of inflation, reducing their workforce by another thirty-percent, and reducing the number of freight cars used and branch lines served, railroads have become cash-cows for hedge-fund managers focused on profits to shareholders over the needs of the communities they once served. Examples include livestock feed sitting at large distribution centers, waiting on rail cars to carry it to farming communities that are delayed or that never arrive; lumber from family farms forced to rot in the yard because a rail line like CSX has decided they will no longer service a smaller branch line.

And of course, the most egregious recent example being the derailment in East Palestine: “…from 2016 to 2023, Norfolk Southern, which along with CSX controls most rail infrastructure east of the Mississippi, spent $8.4 billion more on dividends and stock buyback than its cash flow provided [which can only by done by selling-off assets and downsizing]. The money likely would have been better spent on safety and operational maintenance. After the 2023 wreck of a Norfolk Southern train in East Palestine, Ohio, that sent a mushroom cloud of toxic chemicals across 16 states, federal investigators laid blame on the company’s insufficient investment in wayside sensors that could have detected a failing roller bearing.” (As an aside, I’ll give you three guess who the second largest shareholder of Norfolk Southern is, but you’ll only need one: BlackRock. If you guessed Vanguard or State Street, you weren’t far off: they’re the first and fourth largest shareholders.)

East Palestine, Ohio

What, you may ask, does this have to do with National Socialism?

Simply put, this state of affairs would not be allowed to happen under a National Socialist system. The rail system is too important to the well-being of the public good to be left in the hands of multi-national corporations and hedge-fund managers whose sole motivation is profit above all else. Under National Socialism, railroads would be controlled by the State to serve the greater good, the needs of the Volk, over the profit motives of a select few. This was the case with the Deutsche Reichsbahn in National Socialist Germany, and a watered down version of it is still to be found throughout most of Europe.

The people, the Volk, need trains. For our nation to thrive, and for individuals to be free from unnecessary financial burden, we need a strong economy founded on the principal of a fair day’s wage for a fair day’s work. This, in turn, requires a fair and just transport infrastructure so that the fruits of our labor can find a home. I like to think of it in terms of the relationship of the fingers to the hand. Individuals are the fingers. The Volk, our community, is the hand. They are inextricably linked, and the importance and functionality of one is dependent on the other. What good is one without the other?

Because of the misapplication of the term Socialism and its conflation with Communism, most Americans believe National Socialists want to take your “stuff” and tell you what to do. Nothing could be further from the truth. We don’t want to take your car, we want to make sure you have good roads to drive it on. We want to help the company that is employing the American worker by ensuring it can obtain the raw materials it needs to build it at fair and reasonable price so that you can, in turn, buy the car for a fair and reasonable price. We want to help the American farmer, who cannot otherwise compete with Conagra, get his crops to market by guaranteeing access to small-line rail. When the greater good is served, so too are the individuals which comprise it. As the ANP says, it’s What We Stand For.

To quote Gottfried Feder*:

Common good before self-interest.

Only in the service of the community, only as a serving member within the framework of the nation as a whole, does the individual awaken to a higher life…Only under the rule of this basic idea will the individual gain the feeling of security and recognize that only under this dominant idea can a richly structured, organic national economy emerge from today’s predatory economy, for the benefit of the whole – and thus also for the benefit of each individual.”

Amerika Erwache!

*”Gemeinwohl vor Eigennutz.
Nur im Dienste der Gemeinschaft, nur als dienendes Glied im Rahmen der Gesamtnation erwacht der einzelne zu einem höheren Leben…Nur unter der Herrschaft dieses Grundgedankens wird der einzelne das Gefühl der Geborgenheit gewinnen und erkennen, dass nur unter diesem herrschenden Gedanken aus der heutigen Raubwirtschaft eine reich gegliederte, organische Volkswirtschaft entstehen kann, zum Wohle des Ganzen – und damit auch zum Wohle jedes einzelnen.“ – The Program of the NSDAP and its General Conceptions, 1932

4 responses to “Railroads and the need for National Socialism”

  1. HAK Avatar
    HAK

    Thanks for proving to readers that there is more to National Socialism than a gnawing concern about race mixing. Indeed, National Socialism is not about uniforms, street fights, pageantry, militarism.

    National Socilism is first and above all about a folk community based on economic grit and durability, reason and rightfulness. Capitalism is all about profits and shareholders, greed and exploitation.

    This post is a welcome reminder of the fact that National Socialism is an economic order as well as an aspiration to a fully engaged social community.

    The railroads, once the forerunner of the industrial age, were owned by the worst of the notorious 19th Century robber barons who wrote the book on capitalism. The US Founding Fathers made laws that required corporations to dissolve after 30 years in business, to prevent wealth accumulating for the benefit of one person, one family, or one group of shareholeders. In 1886, it was the Southern Pacific Railroad that brought suit against this law in order to keep all the wealth gathered where it did the most good, or so the R.R. executives claimed: in the hands of owners. Southern Pacific Railroad Company, 118 U.S. 394 (1886), is that corporate law case brought before the United States Supreme Court. The case is most notable for a headnote stating that the Equal Protection Clause of the Fourteenth Amendment grants constitutional protections, i.e. personhood, to corporations. And since then, workers have been screwed, regaining access to profits however they could via labor unions that evcentually also succumbed to profit motives, for corrupt union leadership. State and federal goverment reacted to the corporate “personhood” by beginning to tax ralroads in the early 1900s. Those taxes grew, and grew. Rail passengers had to pay a 10 federal tax on every ticket.

    But as to the essay posted here, it should also be noted that 187 years after the invention of the railroad, the steel wheel on the steel rail is sill the mode of transport most economical because it is nearly free of friction in movement. A rubber tire on pavement is flattened anywhere from one-half to one full square foot at point of contact. A steel wheel on the steel rail occupies 1/8 inch, on heavier loads the point of contact per wheel is about the size of a dime. An 18-wheeler truck on the highway is draging against as much as 18 square FEET of friction. A common 8-wheel freight rail car is pulled against a mere one to four friction square INCHES.

    The amount of fuel needed to haul one trailer of freight 1,000 miles by highway is the same amount of fuel required by a pair of diesel locomotives to haul 80 trailers on flatcars the same distance.

    Capitalism sustains the waste for the benefit of the unregulated trucking companies (and btw ask any pro truck driver if he can make a living wage without driving dangerously beyond his fatigue rating). The railroads were first taxed to death then funnelled into merger conglomerates to compendate for taxation, mergers that reduce competition between the railroads and the trucking firms. No one benefits. Except holding companies, hedge funds, and wealthy holders of multiple thousand shares of preferred stock.

    The US in the 1920s boasted of 250,000 miles of track, plus 18,000 miles of interurban electric railroads. By 1970 trackage had sunk to 125,000 miles. The interurbans perished slowly with every mile of highway constructed (by taxpayer money). Today one interurban survives (approx. 100 miles) and rails are back up to 155,000 miles due to new construction, much of it replacement of mileage torn up after 1970. At long last there is a growing awareness of rail transport importance.

    1. Johann Rhein Avatar

      Thanks HAK great comment! I had no idea about 1886 court case (corporations as persons? Still trying to get my head around that), and “An 18-wheeler truck on the highway is dragging against as much as 18 square FEET of friction. A common 8-wheel freight rail car is pulled against a mere one to four friction square INCHES.” – holy smokes. I knew trains were more efficient than trucks, but not to that astonishing degree.

  2. Dan Schneider Avatar
    Dan Schneider

    Deregulation. It really is a dirty word. It is the cause of many of our current problems. Ronald Reagan is often considered one of the greatest presidents of all time. He was not. He was one of the most popular. Not one of the best. It’s because of what Reagan started in the 1980s that we are in the financial mess we are today.

    Reagan began a program of deregulation that has spiraled out of control. Not just the railroads. Banks most of all. Before Reagan there was no such thing as “too big to fail” banks. Due to regulation, they were not huge corporations. Most were partnerships. As regulations were stripped away, these banks grew and grew until they were able to incorporate and sell stock and grow even more.

    Before Reagan, when you borrowed money from a bank to buy a home, you paid the bank back directly. It was in the bank’s best interest to make sure everyone who applied for a loan was able to pay it back. All that changed after deregulations.

    After Reagan, when you borrowed from a local bank, they would sell your mortgage to huge investment firms like Fannie Mae, Freddie Mac, Lehman Brothers, or Bears and Stern’s. They in turn would put your mortgage into an investment packet called CDOs, or Collateralized Debt Obligation, which is a complex financial product that bundles different types of debt into a single security and sells it to investors.

    They also insure your mortgage with a mortgage insurance company. Basically, the banks speculate on investments which include your mortgage at zero risk to themselves. If the mortgage is paid back, they make a profit. If too many borrowers default on their mortgages, the insurance company pays the banks. That means the worst a bank can do on a CDO is break even. Sounds pretty sweet unless you are the insurance company.

    This encouraged predatory lending. People who could not pay back their loans were given mortgages. As this practice increased, a greater strain was placed on the insurance companies. Finally, they collapsed. Now the banks were stuck with billions of dollars worth of bad mortgages and they began to collapse. This is how the real estate crash of 2008 happened and the government had to bail out the banks because they were so large that if they failed the entire economy would have crumbled.

    Regulation is absolutely necessary in business. People are greedy by nature. They cannot be trusted to police themselves. By allowing the financial industry to police themselves, it is literally like putting the mouse in charge of the cheese.

    1. Johann Rhein Avatar

      Fantastic summary Comrade! I work in the financial services industry and couldn’t have explained the CDO/2008 market crash any better or succinctly. Of course the idea of regulation is abhorrent, in a perfect world. But we don’t live in a perfect world. Human nature is human nature. Even a well-run home has rules and regulations to live by. It would be great if we could all “just get along”, but I think the scale of society has something to do with it. A small town or village might well be able to “police” itself: everyone is a neighbor and you’re probably related to a third of the town anyway. But as the population gets larger and people become more removed from each other… Funny story about small village policing: one of my 11th great-grandfathers and his buddies, being sailors from Ireland, got drunk in the recently founded Massachusetts Bay Colony in 1639 and into a little trouble. Their punishment was 40 shillings for drunkenness and to “stand at the meeting house door next lecture day with a “cleft stick” [like a clothes pin] upon his tongue and a paper upon his hat [think dunce cap] for gross premeditated lying.” Shame = punishment. He was lost at sea in 1654.

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