From the inception of railroads in the U.S., commercial freight railroads operated private passenger service. However, by the 1960s, travel by air and interstate highways dominated, and it was no longer profitable to operate passenger railroads.
As a result, private railroads in the U.S. were not doing well. Passenger service was one of many headwinds they had in the business, and they were essentially looking to end it. The federal government did not want to see a wholesale failure....