You know it amazes me to still here this from folks. I'll let you in on a little secret. The reason Amtrak was formed was because the Penn Central was bleeding money and they had the Northeast Corridor (NEC). Since a lot of Congressmen and Senators actually rode the train into DC this could be a problem if the Penn curtailed or discontinued service. Of course it couldn't because it had a long standing agreements with the government to provide passenger service. As a matter of fact all of the huge land tracks that were granted to railroads in this country included little hooks for passenger rail service. Sure, the railroads from post WWII were losing money on passenger service because people were buying cars and the feds were sponsoring airports and the national highway system. But instead of letting the railroads drop unprofitable lines, the government pushed them to continue their agreements. The government regulated Railroads and some thing airlines are the most regulated, think again. The CFR (Code of Federal Regulations) covering Railroads is extensive and still in force even in a deregulation climate. Some of the passenger services became shadows such as running an RCD (Rail Car Diesel) as a train for example instead of a multi-car train. The point is the government has been involved in Railroads in this country for a very long time. Republican or Democratic administrations, it doesn't matter hell the PRR received a $77m loan for electrification from the new deal which was a chunk of change back then. For comparison the Hoover dam only cost $46m during the same era.
So in the late 60s the Penn Central now with more absorbed Railroads consolidated and more miles of track and debt tied on started losing money, so much so that it filed for bankruptcy in 1970. This sent a shock wave up and down the east coast. Backroom deals were being hashed because a Federal Bankruptcy judge would allow the Penn Central to abandon less profitable passenger service, even if they had contracts and deals to provide it. What would the east coast people do and more importantly how would the Senators and Congressman who'd become accustomed to getting to / from DC quickly do? So a backroom deal was done and Amtrak was created but when other Railroads heard about the deal they said "hey, no fair" and lobbied their Congressmen and Senators and that's why boys and girls all interstate passenger rail service went to Amtrak as part of the Rail Passenger Service Act of 1970 Of course the NEC was untouched but most of the country lost passenger service. At that point the Feds were 100% in the Railroad business and because it was set up as a for profit corporation under the DOT that meant that nobody in Amtrak could ever do anything like drop or add routes without bureaucrats or congressional approval. That's not a company, that's a federal service and more importantly Amtrak is the Federal Governments toy railroad with special earmarks having been placed in front if it all along the way to add or improve service. That's all politics and Amtrak could be viable if it was allowed to drop everything but the NEC but that's not going to happen and really, think about this: Amtrak's total budget request for 2014 was $2.6 billion. Considering how much money we put into horseshit in this country that's not a lot of money but if you want Amtrak to be a independent corporation, which it isn't, it has to have an independent board who aren't appointed by the DOT and it has to be given enough funding to stretch into profitability and also, regrettably it needs to abandon routes that don't make financial sense.