Of the few socialized railroads in the United States, the largest is the Grand Trunk Western, which is controlled by the Canadian government. The operating losses of the Grand Trunk became so large that the Canadian National management decided that they should no longer be incurred. A new local management was installed with directions to adopt efficiency criteria. While operating losses have been cut from $27 million in 1970 to $7.5 million in 1975, it is unlikely that such losses can be cut further without major abandonments of light-density railroad lines. Coordination with other carriers in southern Michigan and major disinvestment can only derive from long-run investment efficiency as a policy goal and intense efforts to secure ICC permits to abandon losing lines.
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