NEW YORK -- David L. Gunn is a former top executive of the
transit systems in Boston, New York, Philadelphia and Washington,
according to the New York Times. He will turn 65 on Friday but was
called out of retirement last month to be the president and chief
executive of Amtrak, the national passenger railroad
company.
The company, subsidized by the government, has
recently dropped all pretense of reaching self-sufficiency, a
requirement imposed in 1997 by Senator John McCain, Republican of
Arizona, and others in Amtrak's last authorization, and says it
needs billions of dollars in federal subsidies in coming years just
to maintain the level of service it now provides. In an interview
last week in Washington, Mr. Gunn spoke about Amtrak's future.
Q. You told employees recently that Amtrak would have to
shut down in July without new financing in place by the end of June.
Why would a bank lend Amtrak money?
A. We're going to get an
appropriation. I'm fairly confident that we'll get it. We've had
expressions of support from large numbers of people on the Hill. We
have signatures of support from the House, over 160, and from the
Senate, 30 or 40.
Even Senator McCain, for example, has come
out and said he wants to work with Amtrak to see us through this
period, and he's been a long-term critic.
Q. How critical is
Amtrak's condition?
A. Amtrak's had problems for years,
financially, but if you just look at the history, you look at what's
happened in terms of cash flow, and in terms of the maintenance
activities and so forth, we've basically done all the tricks that
are in our control to avoid needing cash.
With the cash
problems that we've had, a lot of heavy maintenance has been stopped
or deferred. For example, on the car fleet, we used to do an
overhaul every four years. The car might be 30 years old but the
passenger compartment would look fairly fresh.
That all
stopped. The cars look a little tired, and we're short of
cars.
Wrecked or damaged cars — we have 97 of them. These are
cars that should be in service. All that stuff's got to be restored.
We're going to do it. My philosophy is, you've got to do it. I don't
know how. My management philosophy is, I'd rather beg forgiveness
than ask permission.
Q. Why should the government subsidize
Amtrak?
A. No passenger operation in this country today, even
the airlines — except maybe for Southwest — covers capital costs.
They certainly don't pay for the airports and all that
stuff.
You have this desire to say we have to do what the
airlines can't do, operate without a subsidy. Highways are even more
subsidized, although a lot of it's hidden. Look at Manhattan. It's
the most valuable real estate in North America, and yet what percent
of it is paved over for the automobile, which they don't pay for?
It's an incredible subsidy. The problem is, we are a creation of the
federal government. When they set it up, we were supposed to be off
subsidies in three years. It's nuts. I knew it was nuts then. We
have this absolutely Jekyll-and-Hyde situation, where you go up on
the Hill for support you need to run trains. What you get is 50
cents of support and it costs you a dollar.
Q. Would cutting
the long-distance trains help?
A. Mathematically, there is no
way you can take this company, carve it up, and get the service you
require. The long-distance trains require subsidy, the Northeast
Corridor requires less subsidy. The long-distance trains don't need
that much capital, but the corridor needs lots of
capital.
You can't be all things to all people. We need
national support for any part of the system, even the Northeast
Corridor. There's no way you're going to get the money out of
Congress for the Northeast Corridor if you don't have broad-based
support in other areas.
Q. The Amtrak Reform Council, the
advisory group established by Congress, raised the idea of competing
companies to run trains, and giving ownership of the Northeast
Corridor to a separate entity. Others have talked about high-speed
rail corridors in the Midwest run by new companies. Would that
work?
A. This business of saying someone else is going to run
the Midwest corridors — where are these people going to come from?
It's going to be another one of these situations where you're
starting from scratch. This isn't a new business. There are certain
skills you need to run it. We have those skills and do a pretty good
job at it.