Amtrak warns of discontinued service

Amtrak warned Friday that all long-distance train service will be discontinued in October if a $1.2 billion appropriations request from Congress is not met. The railway announced a $258 million package of spending cuts and capital investment deferrals, including a 4% cut in staff. Overall, Amtrak's current base of 24,600 positions will be cut by 1,000. Amtrak said the business actions announced today are necessary to counter $120 million in losses for 2001-2002 due to the recession, and a loss of $52 million in financing. "Everyone knows that you can't make a profit while running a network of unprofitable trains, but that is exactly what we are expected to do," said Amtrak President George Warrington.