BP and BNSF

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Marv Tripp

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Nov 14, 2013, 8:05:52 PM11/14/13

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Jeanette & I watch PBS NEWS HOUR on a regular basis. Two of the continuing sponsors are BP (oil) and BNSF (Railroad). The BP commercial ends by telling how "our commitment to the Gulf has never been stronger."

Since their commitment wasn't very high to begin with, being stronger isn't much of a reach.

The BNSF story is a bit more subtle. From my notes (THE FINE PRINT, David Cay Johnston):

Warren Buffett bought out the shareholders of BNSF in 2009. Nobody questioned him as to why. While the rest of the stock market fell, the BNSF grew 375%. BNSF ships coal, but it also ships grain via the only railway out of the Dakotas and Montana......gouging farmers enormous fees. BNSF got away with it because hidden in the fine print, there are rules about who can sue for price-gouging complaints. Altho farmers bear the cost of shipping, grain companies who buy from farmers contract for shipping. Those grain companies can file complaints. But farmers don't have standing. They can't sue.

Government agencies, created to control rapacious conduct have few appointees with a background advocating for consumers. When a business has a monopoly, as railroads do in many parts of the country, regulation is supposed to level market forces. But typically they advocate for industry. Easy profits enable companies to make more political donations to further tilt the system in their favor.