Steam Locomotive, Diesel Electric Locomotive, Interstate Highway System, Airplane, Air Travel, Refined Petroleum Products and Pipelines

Posted by PITHOCRATES - March 21st, 2012

Technology 101

The Diesel Electric Locomotive could pull a Train Cross Country and into the Heart of a City with Minimal Pollution

The 1920s were transformative years.  The Roaring Twenties.  It’s when we moved from animal power to mechanical power.  From the horse and plow to the tractor.  From steam power to electric power.  From the telegraph to the telephone.  From the gas lamp to the electric light.  From crowded mass transit to the freedom of the automobile.  From manual labor to the assembly line. 

You can see a glimpse of that world in 1920’s Steam Train Journey Across the United States – Westward Ho!  The beginning of the modern city.  With modern street lighting.  Electric power and telephone overhead wiring.  Streets crowded with automobiles.  Tractors and mechanical harvesters on the farm.  And, of course, the steam locomotive.  Connecting distant cities.  Transferring the freight to feed the modern industrial economy.  And shipping the finished goods.  As well as all that food from the farm to our grocer’s shelves.  Proving the 1920s were vibrant economic times.  With real economic growth.  And not a speculative bubble.  For there was nothing speculative about all of this technology becoming a part of our way of life.

Of course the technology wasn’t perfect.  The coal-burning locomotives belched black smoke and ash wherever they went.  Which wasn’t all that bad in the open country where a train or two passed.  But it was pretty dangerous in tunnels.  Which had to be short lest they suffocated their passengers.  (One of the reasons why all subways use electric trains).  Making for some long and winding railroads in mountainous terrain.  To go around mountains instead of under them.  Slowing trains and increasing travel time.  And they were pretty unpleasant in the cities.  Where the several rail lines converged.  Bringing a lot of coal-burning locomotives together.  Creating a smoky haze in these cities.  And leaving a layer of ash everywhere.  The cleaner diesel-burning locomotives changed that.  The diesel electric locomotive could pull a train cross country and into the heart of a city with a minimal amount of pollution.  As long as they kept their engines from burning rich.  Which they would if they operated them with dirty air filters.  Reducing fuel efficiency by having the air-fuel mixture contain too much fuel.  And causing these engines to belch black smoke.  Similar to diesel trucks running with dirty air filters.

Airplanes can travel between Two Points in a Direct Line at Faster Speeds than a Train or Bus with Minimal Infrastructure

Trains shrunk our country.  Brought distant cities together.  Allowing people to visit anywhere in the continental United States.  And the railroads profited well from all of this travel.  Until two later developments.  One was the interstate highway system.  That transferred a lot of freight from the trains to trucks.  As well as people from trains to buses and cars.  And then air travel.  That transferred even more people from trains to airplanes.  This competition really weakening railroads’ profits.  And pretty much put an end to passenger rail.  For people used the interstate highway system for short trips.  And flew on the long ones.  Which was quicker.  And less expensive.  Primarily because airplanes flew over terrain that was costly to avoid.

Highways and railroads have to negotiate terrain.  They have to wind around obstacles.  Go up and down mountainous regions.  Cross rivers and valleys on bridges.  Travel under hilly terrain through tunnels.  And everywhere they go they have to travel on something built by man.  All the way from point A to point B.  Now trucks, buses and cars have an advantage here.  We subsidize highway travel with fuel taxes.  Trucking companies, bus lines and car owners didn’t have to build the road and infrastructure connecting point A to point B.  Like the railroads do.  The railroads had to supply that very extensive and very expensive infrastructure themselves.  Paid for by their freight rates and their passenger ticket sales.  And when there were less expensive alternatives it was difficult to sell your rates and fares at prices high enough to support that infrastructure.  Especially when that lower-priced alternative got you where you were going faster.  Like the airplane did.

Man had always wanted to fly.  Like a bird.  But no amount of flapping of man-made wings got anyone off the ground.  We’re too heavy and lacked the necessary breast muscles to flap anything fast enough.  Not to mention that if we could we didn’t have any means to stabilize ourselves in flight.  We don’t have a streamline body or tail feathers.  But then we learned we could create lift.  Not by flapping but my pushing a curved wing through the air.  As the air passes over this curved surface it creates lift.  Generate enough speed and you could lift quite a load with those wings.  Including people.  Cargo.  Engines.  And fuel.  Add in some control elements and we could stabilize this in flight.  A tail fin to prevent yawing (twisting left and right) from the direction of flight.  Like a weathercock turns to point in the direction of the wind.  And an elevator (small ‘wing’ at the tail of the plane) to control pitch (nose up and nose down).  Ailerons correct for rolling.  Or turn the plane by rolling.  By tipping the wings up or down to bank the airplane (to turn left the left aileron goes up and the right aileron goes down).  And using the elevator on the take-off roll to pitch the nose up to allow the plane to gain altitude.  And in flight it allows the plane to ascend or descend to different altitudes.  Put all of this together and it allows an airplane to travel between points A and B while avoiding all terrain.  In a direct line between these two points.  At a much faster speed than a train, bus or car can travel.  And the only infrastructure required for this are the airports at points A and B.  And the few en route air traffic controllers between points A and B. Which consisted of radar installations and dark rooms with people staring at monitors.  Communicating to the aircraft.  Helping them to negotiate the air highways without colliding into other aircraft.  And air travel took off, of course, in the 1920s.  The Roaring Twenties.  Those glorious transformative years.

Refined Petroleum Products have Large Concentrations of Energy and are the Only Fuel that allows Air Travel

The most expensive cost of flying is the fuel cost.  The costlier it is the costlier it is to fly.  Not so for the railroads.  Because their fuel costs aren’t the most expensive cost they have.  Maintaining their infrastructure is.  They can carry incredible loads cross country for a small price per unit weight.  Without swings in fuel prices eating into their profits.  Making them ideal to transfer very large and/or heavy loads over great distances.  Despite dealing with all the headaches of terrain.  For neither a plane nor a truck can carry the same volume a train can.  And heavier loads on a plane take far greater amounts of fuel.  This additional fuel itself adding a great amount of weight to the aircraft.  Thus limiting its flight distance.  Requiring refueling stops along the way.  Making it a very expensive way to transport heavy loads.  Which is why we ship coal on trains.  Not on planes.

Trains are profitable again.  But they’re not making their money moving people around.  Their money is in heavy freight.  Iron ore.  Coke.  And, of course, coal.  To feed the modern industrial economy.  Stuff too heavy for our paved roads.  And needed in such bulk that it would take caravans of trucks to carry what one train can carry.  But even trains can’t transport something in enough bulk to make it cost efficient.  Refined petroleum.  Gasoline.  Diesel.  And jet fuel.  For these we use pipelines.  From pipelines we load gas and diesel onto trucks and deliver it to your local gas station.  We run pipelines directly to the fuel racks in rail yards.   And run pipelines to our airports.  Where we pump jet fuel into onsite storage tanks in large fuel farms.  Which we then pump out in another set of pipelines to fueling hydrants located right at aircraft gates.

These refined petroleum products carry large concentrations of energy.  Are easy to transport in pipelines.  Are portable.  And are very convenient.  Planes and trains (as well as ships, busses and cars) can carry them.  Allowing them to travel great distances.  Something currently no renewable energy can do.  And doing without them would put an end to air travel.  Greatly increase the cost of rail transport (by electrifying ALL our tracks).  Or simply abandoning track we don’t electrify.  Making those far distant cities ever more distant.  And our traveling options far more limited than they were in the 1920s.  Turning the hands of time back about a hundred years.  Only we’ll have less.  And life will be less enjoyable.

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Carnegie, Rockefeller, Morgan, Interstate Commerce Act, Sherman Antitrust Act, Sherman Silver Purchase Act, Federal Reserve, Nixon and Reagan

Posted by PITHOCRATES - January 31st, 2012

History 101

Government Induced Inflation caused the Panic of 1893 and caused the Worst Depression until the Great Depression

Britain kicked off the Industrial Revolution.  Then handed off the baton to the United States in the latter half of the 19th century.  As American industry roared.  Great industrialists modernize America.  And the world.  Andrew Carnegie made steel inexpensive and plentiful.  He built railroad track and bridges.  And the steel-skeleton buildings of U.S. cities.  Including the skyscrapers.  John D. Rockefeller saved the whales.  By producing less expensive kerosene to burn in lamps instead of the more expensive whale oil.  He refined oil and brought it to market cheaper and more efficiently than anyone else.  Fueling industrial activity and expansion.  J.P. Morgan developed and financed railroads.  Made them more efficient.  Profitable.  And moved goods and people more efficiently than ever before.  Raising the standard of living to heights never seen before. 

The industrial economy was surging along.  And all of this without a central bank.  Credit was available.  So much so that it unleashed unprecedented economic growth.  That would have kept on going had government not stopped it.  With the Interstate Commerce Act in 1887 and the Sherman Antitrust Act of 1890.  Used by competitors who could not compete against the economy of scales of Carnegie, Rockefeller and Morgan and sell at their low prices.  So they used their friends in government to raise prices so they didn’t have to be as competitive and efficient as Carnegie, Rockefeller and Morgan.  This legislation restrained the great industrialists.  Which began the era of complying with great regulatory compliance costs.  And expending great effort to get around those great regulatory compliance costs.

Also during the late 19th century there was a silver boom.  This dumped so much silver on the market that miners soon were spending more in mining it than they were selling it for.  Also, farmers were using the latest in technology to mechanize their farms.  They put more land under cultivation and increased farm yields.  So much so that prices fell.  They fell so far that farmers were struggling to pay their debts.  So the silver miners used their friends in government to solve the problems of both miners and farmers.  The government passed the Sherman Silver Purchase Act which increased the amount of silver the government purchased.  Issuing new treasury notes.  Redeemable in both gold and silver.  The idea was to create inflation to raise prices and help those farmers.  By allowing them to repay old debt easier with a depreciated currency.  And how did that work?  Investors took those new bank notes and exchanged them for gold.  And caused a run on U.S. gold reserves that nearly destroyed the banking system.  Plunging the nation in crisis.  The Panic of 1893.  The worst depression until the Great Depression.

Richard Nixon Decoupled the Dollar from Gold and the Keynesians Cheered 

J.P. Morgan stepped in and loaned the government gold to stabilize the banking system.  He would do it again in the Panic of 1907.  The great industrialists created unprecedented economic activity during the latter half of the 19th century.  Only to see poor government policies bring on the worst depression until the Great Depression.  A crisis one of the great industrialists, J.P. Morgan, rescued the country from.  But great capitalists like Morgan wouldn’t always be there to save the country.  Especially the way new legislation was attacking them.  So the U.S. created a central bank.  The Federal Reserve System.  Which was in place and ready to respond to the banking crisis following the stock market crash of 1929.  And did such a horrible job that they gave us the worst depression since the Panic of 1893.  The Great Depression.  Where we saw the greatest bank failures in U.S. history.  Failures the Federal Reserve was specifically set up to prevent.

The 1930s was a lost decade thanks to even more bad government policy.  FDR’s New Deal programs did nothing to end the Great Depression.  Only capitalism did.  And a new bunch of great industrialists.  Who were allowed to tool up and make their factories hum again.  Without having to deal with costly regulatory compliance.  Thanks to Adolf Hitler.  And the war he started.  World War II.  The urgency of the times repealed governmental nonsense.  And the industrialists responded.  Building the planes, tanks and trucks that defeated Hitler.  The Arsenal of Democracy.  And following the war with the world’s industrial centers devastated by war, these industrialists rebuilt the devastated countries.  The fifties boomed thanks to a booming export economy.  But it wouldn’t last.  Eventually those war-torn countries rebuilt themselves.  And LBJ would become president.

The Sixties saw a surge in government spending.  The U.S. space program was trying to put a man on the moon.  The Vietnam War escalated.  And LBJ introduced us to massive new government spending.  The Great Society.  The war to end poverty.  And racial injustice.  It failed.  At least, based on ever more federal spending and legislation to end poverty and racial injustice.  But that government spending was good.  At least the Keynesians thought so.  Richard Nixon, too.  Because he was inflating the currency to keep that spending going.  But the U.S. dollar was pegged to gold.  And this devaluation of the dollar was causing another run on U.S. gold reserves.  But Nixon responded like a true Keynesian.  And broke free from the shackles of gold.  By decoupling the dollar from gold.  And the Keynesians cheered.  Because the government could now use the full power of monetary policy to make recessions and unemployment a thing of the past.

Activist, Interventionist Government have brought Great Economic Booms to Collapse 

The Seventies was a decade of pure Keynesian economics.  It was also the decade that gave us double digit interest rates.  And double digit inflation rates.  It was the decade that gave us the misery index (the inflation rate plus the unemployment rate).  And stagflation.  The combination of a high inflation rate you normally only saw in boom times coupled with a high unemployment rate you only saw during recessionary times.  Something that just doesn’t happen.  But it did.  Thanks to Keynesian economics.  And bad monetary policy.

Ronald Reagan was no Keynesian.  He was an Austrian school supply-sider.  He and his treasury secretary, Paul Volcker, attacked inflation.  The hard way.  The only way.  Through a painful recession.  They stopped depreciating the dollar.  And after killing the inflation monster they lowered interest rates.  Cut tax rates.  And made the business climate business-friendly.  Capitalists took notice.  New entrepreneurs rose.  Innovated.  Created new technologies.  The Eighties was the decade of Silicon Valley.  And the electronics boom.  Powering new computers.  Electronic devices.  And software.  Businesses computerized and became more efficient.  Machine tools became computer-controlled.  The economy went high-tech.  Efficient.  And cool.  Music videos, CD players, VCRs, cable TV, satellite TV, cell phones, etc.  It was a brave new world.  Driven by technology.  And a business-friendly environment.  Where risk takers took risks.  And created great things.

History has shown that capitalists bring great things to market when government doesn’t get in the way.  With their punishing fiscal policies.  And inept monetary policies.  Activist, interventionist government have brought great economic booms to collapse.  Who meddle and turn robust economic activity into recessions.  And recessions into depressions.  The central bank being one of their greatest tools of destruction.  Because policy is too often driven by Big Government idealism.  And not the proven track record of capitalism.  As proven by the great industrialists.  And high-tech entrepreneurs.  Time and time again.

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Trade, Steam Power, Reciprocating Steam Engine, Railroading, Janney Coupler and Westinghouse Air Brake

Posted by PITHOCRATES - January 25th, 2012

Technology 101

Early Cities emerged on Rivers and Coastal Water Regions because that’s where the Trade Was

The key to wealth and a higher standard of living has been and remains trade.  The division of labor has created a complex and rich economy.  So that today we can have many things in our lives.  Things that we don’t understand how they work.  And could never make ourselves.  But because of a job skill we can trade our talent for a paycheck.  And then trade that money for all those wonderful things in our economy.

Getting to market to trade for those things, though, hasn’t always been easy.  Traders helped here.  By first using animals to carry large amounts of goods.  Such as on the Silk Road from China.  And as the Romans moved on their extensive road network.  But you could carry more goods by water.  Rivers and coastal waterways providing routes for heavy transport carriers.  Using oar and sail power.  With advancements in navigation larger ships traveled the oceans.  Packing large holds full of goods.  Making these shippers very wealthy.  Because they could transport much more than any land-based transportation system.  Not to mention the fact that they could ‘bridge’ the oceans to the New World.

This is why early cities emerged on rivers and coastal water regions.  Because that’s where the trade was.  The Italian city-states and their ports dominated Mediterranean trade until the maritime superpowers of Portugal, Spain, The Netherlands, Great Britain and France put them out of business.  Their competition for trade and colonies brought European technology to the New World.  Including a new technology that allowed civilization to move inland.  The steam engine.

Railroading transformed the Industrial Economy

Boiling water creates steam.  When this steam is contained it can do work.  Because water boiling into steam expands.  Producing pressure.  Which can push a piston.  When steam condenses back into water it contracts.  Producing a vacuum.   Which can pull a piston.  As the first useable steam engine did.  The Newcomen engine.  First used in 1712.  Which filled a cylinder with steam.  Then injected cold water in the cylinder to condense the steam back into water.  Creating a vacuum that pulled a piston down.  Miners used this engine to pump water out of their mines.  But it wasn’t very efficient.  Because the cooled cylinder that had just condensed the steam after the power stroke cooled the steam entering the cylinder for the next power stroke.

James Watt improved on this design in 1775.  By condensing the steam back into water in a condenser.  Not in the steam cylinder.  Greatly improving the efficiency of the engine.  And he made other improvements.  Including a design where a piston could move in both directions.  Under pressure.  Leading to a reciprocating engine.  And one that could be attached to a wheel.  Launching the Industrial Revolution.  By being able to put a factory pretty much anywhere.  Retiring the waterwheel and the windmill from the industrial economy.

The Industrial Revolution exploded economic activity.  Making goods at such a rate that the cost per unit plummeted.  Requiring new means of transportation to feed these industries.  And to ship the massive amount of goods they produced to market.  At first the U.S. built some canals to interconnect rivers.  But the steam engine allowed a new type of transportation.  Railroading.  Which transformed the industrial economy.  Where we shipped more and more goods by rail.  On longer and longer trains.  Which made railroading a more and more dangerous occupation.  Especially for those who coupled those trains together.  And for those who stopped them.  Two of the most dangerous jobs in the railroad industry.  And two jobs that fell to the same person.  The brakeman.

The Janney Coupler and the Westinghouse Air Brake made Railroading Safer and more Profitable

The earliest trains had an engine and a car or two.  So there wasn’t much coupling or decoupling.  And speed and weight were such that the engineer could stop the train from the engine.  But that all changed as we coupled more cars together.  In the U.S., we first connected cars together with the link-and-pin coupler.  Where something like an eyebolt slipped into a hollow tube with a hole in it.  As the engineer backed the train up a man stood between the cars being coupled and dropped a pin in the hole in the hollow tube through the eyebolt.  Dangerous work.  As cars smashed into each other a lot of brakemen still had body parts in between.  Losing fingers.  Hands.  Some even lost their life.

Perhaps even more dangerous was stopping a train.  As trains grew longer the locomotive couldn’t stop the train alone.  Brakemen had to apply the brakes evenly on every car in the train.  By moving from car to car.  On the top of a moving train.  Jumping the gap between cars.  With nothing to hold on to but the wheel they turned to apply the brakes.  A lot of men fell to their deaths.  And if one did you couldn’t grieve long.  For someone else had to stop that train.  Before it became a runaway and derailed.  Potentially killing everyone on that train.

As engines became more powerful trains grew even longer.  Resulting in more injuries and deaths.  Two inventions changed that.  The Janney coupler invented in 1873.  And the Westinghouse Air Brake invented in 1872.  Both made mandatory in 1893 by the Railroad Safety Appliance Act.  The Janney coupler is what you see on U.S. trains today.  It’s an automatic coupler that doesn’t require anyone to stand in between two cars they’re coupling together.  You just backed one car into another.  Upon impact, the couplers latch together.  They are released by a lifting a handle accessible from the side of the train.

The Westinghouse Air Brake consisted of an air line running the length of the train.  Metal tubes under cars.  And those thick hoses between cars.  The train line.  A steam-powered air compressor kept this line under pressure.  Which, in turn, maintained pressure in air tanks on each car.  To apply the brakes from the locomotive cab the engineer released pressure from this line.  The lower pressure in the train line opened a valve in the rail car air tanks, allowing air to fill a brake piston cylinder.  The piston moved linkages that engaged the brake shoes on the wheels.  With braking done by lowering air pressure it’s a failsafe system.  For example, if a coupler fails and some cars separate this will break the train line.  The train line will lose all pressure.  And the brakes will automatically engage, powered by the air tanks on each car.

Railroads without Anything to Transport Produce no Revenue

Because of the reciprocating steam engine, the Janney coupler and the Westinghouse Air Brake trains were able to get longer and faster.  Carrying great loads great distances in a shorter time.  This was the era of railroading where fortunes were made.  However, those fortunes came at a staggering cost.  For laying track cost a fortune.  Surveying, land, right-of-ways, grading, road ballast, ties, rail, bridges and tunnels weren’t cheap.  They required immense financing.  But if the line turned out to be profitable with a lot of shippers on that line to keep those rails polished, the investment paid off.  And fortunes were made.  But if the shippers didn’t appear and those rails got rusty because little revenue traveled them, fortunes were lost.  With losses so great they caused banks to fail.

The Panic of 1893 was caused in part by such speculation in railroads.  They borrowed great funds to build railroad lines that could never pay for themselves.  Without the revenue there was no way to repay these loans.  And fortunes were lost.  The fallout reverberated through the U.S. banking system.  Throwing the nation into the worst depression until the Great Depression.  Thanks to great technology.  That some thought was an automatic ticket to great wealth.  Only to learn later that even great technology cannot change the laws of economics.  Specifically, railroads without anything to transport produce no revenue.

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