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Fall 2015
ISSN 0890-913X
Volume 30, Number 3

Generations of Transit Disaster: The New York City Subways

Gregory Bresiger, New York, New York
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/index.php?action=ajax&rs=GDMgetPage&rsargs[]=2015 Journal of Private Enterprise vol 30 no 3 parte3.pdf&rsargs[]=0
GenerationsofTransitDisaster:TheNewYorkCitySubwaysTheJournalofPrivateEnterprise30(3),2015,5177GregoryBresigerNewYork,NewYork______________________________________________________AbstractTheNewYorkCitysubwaysareamess.Bothroutinemaintenanceandnewlinesareoftendelayed.Thelastseventy-fiveyearsofsubwayhistorydemonstratethefailureofthecurrentsystemofgovernmentownershipandoperation.Previously,thesystemincludedsomeprivatemanagementcompanies,whichbuiltthefirstlinesinwhatwasthesubwaysgoldenera.Thisperiod,from1904toroughly1920,wasatimewhenthesubwayswereconsideredanengineeringmarvel.Thelinesalsomademoney.Thispaperdocumentsthesystemsdecline.______________________________________________________JELCodes:N71,N72,N91,N92Keywords:NewYorkCitysubways,publictransportation,governmentownershipI.IntroductionIfevertherewereanexampleofastateenterprisewithaprotractedhistoryoffailure,itisNewYorksdeterioratingsubways.Completegovernmentownershipandoperationofthesubwaysthisyearmarkstheseventy-fifthanniversaryoftheousterofthelastprivatemanagementcompanieshasturnedaoncegreatsystemintoanightmare.Problemsincludedelayedmaintenance,politicalunaccountability,poorcommunicationssystems,angrytransitunionsthreateningtoshutdownthecityandsometimesdoingso,asinthe1966strikethatcrippledthecityseconomyforweeksandtheproblemofalmosteveryotherbusinessoperatedbygovernments:relentlessredink.Delaysconstantlyplaguethesystem,asillustratedbyendlessstoriesinNewYorknewspapers(see,e.g.,Harshbarger2015;Soria2015).Whathappenedtothesubways,whichwereonceregardedasatransportationjewel?Andwhydidtheprivatemanagementcompanieseventuallydepart,sellingtheirassetstothecity,whicheventuallytransferredcontrolofthesystemtoastateauthority?Governmentpricecontrolsandpoliticaltinkeringdrovetheownersofprivatemanagementcompaniestodestructionastheyran51
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