Do railroads have a free ride?
(The following story by Jia Lynn Yang of Fortune Magazine appeared at CNN.com on April 25, 2009.) NEW YORK The railroad industry is an old-time business, and for a while it was indeed stuck in the past — choked by regulation and constantly beset with bankruptcies. Then railroads won more freedom to dictate prices and, as one of the only industries exempt from federal antitrust law, they’ve enjoyed an unexpected renaissance ever since. But controls over the industry could tighten again — thanks to a group of proposals from powerful legislators — and send Wall Street investors running. Over the past several years, the railroad industry has undergone a renaissance, attracting a new generation of talented corporate leaders who have streamlined operations and convinced investors that railroads — which are notoriously capital intensive — could be a greener, cheaper alternative to trucks. And investors fell in love. Warren Buffett plowed money into one of the biggest rail companies, Burl
