Why the Government Was Wrong to Shutdown Fung Wah Bus Company

The iconic Chinatown bus service was destroyed by regulatory incompetence

(Page 3 of 3)

The most serious charge in the shutdown order is that Fung Wah drivers "made fraudulent or intentionally false entries" on the simple inspection forms they're required to fill out at the end of every shift. When asked how the FMCSA knows that Fung Wah drivers were knowingly committing fraud on these forms, agency spokesperson Duanne DeBruyne declined to comment.

The new regulatory regime that ensnared Fung Wah is in danger of bringing intercity busing back to what it was like for much of the 20th century, when a cartel of large companies (particularly Greyhound) dominated a declining industry. President Reagan deregulated busing in 1982. That made it possible for Pei Lin Liang and others to open their own companies and reinvent the business 15 years later. The new competition forced Greyhound and the other big carriers to relearn how to fight for customers; with all the shutdowns, they won’t have to fight so hard.

[*] Only the past two years of driver and vehicle violations are available on the FMCSA website. Through a Freedom of Information Act request, I’ve asked for data for all 12 years of Fung Wah’s service. Once I receive the information, I’ll post an update on Hit & Run.

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  • Live Free or Diet||

    One of these "chinese buses" (as they're known around where I usedto live) made big news when it crashed. Then again, so did Miley Cyrus' bus when it did pretty much the same thing.

    I don't remember anyone saying that's why Miley shouldn't tour.

  • ||

    I don't remember anyone saying that's why Miley shouldn't tour.

    Only because there's so many better reasons...

  • Doctor Whom||

    This is how government promotes mass transit and provides transportation options to the less affluent. Alternatively, this shows that the private sector cannot be trusted with transportation, which should be left to public authorities with spotless safety records, like WMATA.

  • gimmeasammich||

    Or that efficient, safe, always on time Amtrak service.

  • UnCivilServant||

    The big thing causing Amtrak scheduling trouble is that the rails proper are owned by the freight haulers, and their contracts require the cargo be given precedence over the passenger trains (I think the Acela line might be the exception to this) I'm not saying it's well run, indeed, allowing such a disadvantageous contract clause to be left in for decades is a sign that there's something amiss.

  • Sevo||

    ..."indeed, allowing such a disadvantageous contract clause to be left in for decades is a sign that there's something amiss."

    If Amtrak had to lay its own rail, we wouldn't have it.
    The taxpayers are only of average intelligence, but the cost for that would have meant all those rent-seekers on the NY/DC route would have to pay full-boat.

  • Rhywun||

    Amtrak owns most of the track in the NE corridor, if I am not mistaken.

  • Doctor Whom||

    The question of who owns the track on which Amtrak operates still doesn't absolve the horrible service given by WMATA, whose subway lines have their own ROW.

  • Rhywun||

    Oh, no doubt - all these agencies offer horrible service for reasons we all understand.

  • Sevo||

    Rhywun| 7.16.13 @ 10:45AM |#
    "Amtrak owns most of the track in the NE corridor, if I am not mistaken."

    Yes, the NY(actually Boston)/DC ROW is theirs, or at least most of it. It was acquired through the bankruptcy of several carriers; i.e. bargain-basement costs. That's the only stretch that could possibly be owned; it represents 25% of Amtrak's revenue. By their reckoning, that stretch is 'profitable'.
    Imagine the cost of paying for the rest of the country's ROW with the remainder. I'm pretty sure no politico has enough 'capital' to push that cost on the taxpayers.

  • Bryan C||

    But the freight hauling companies don't set Amtrak's schedules, Amtrak does. If the rights-of-way which currently exist can't reliably meet the schedules that Amtrak promises then they should stop pretending otherwise.

  • Andrew S.||

    Given that the owners of the bus company were Chinese immigrants, they should have seen it was exactly like at home: If you bribe the right people, rules don't apply to you, and they seem to start applying to the other guy even more harshly.

  • Pro Libertate||

    "The Wing Kong exchange? The most dangerous cutthroat den of madmen in Chinatown? You can't just waltz in and out of there like...."

  • Robert||

    I've noticed very recently a trend toward using words like "shutdown" and "setup" as verbs. I use them as nouns only, and "shut down" and "set up" as verbs. Makes more sense that way. The bus line is shut down, and then you can complain about the shutdown. Later they can again be set up, and then you can admire the setup.

  • Radioactive||

    is that like rob bert is a verb and robert is a noun...haha see what i did there?

  • Sevo||

    If they hadn't hired the driver Som Ting Wong, they wouldn't be in this situation.

  • AlexInCT||

    I thought the driver was called Ho Lee Fuk?

  • Sevo||

    Only after Wi Tu Low got fired.

  • Robert||

    Whatever. Fung Wah has shown that cheap intercity bus travel is possible, so someone else will eventually come along and provide same.

  • Sevo||

    Until they get shut down.

  • Paul.||

    Will they? You going to invest time, effort and money into a business idea that has an extremely high likelihood of being shut down?

  • Robert||

    Well, see, that's the question faced by any biz anywhere. What's the political climate going to be?

    So what reason do we have to think the political climate's going to continue to be bad for bus lines? It was good for long enough that it paid for these guys to go in business. Maybe it'll be another 30 yrs. before the next crackdown.

  • Sevo||

    Robert| 7.16.13 @ 2:29PM |#
    "Well, see, that's the question faced by any biz anywhere. What's the political climate going to be?"

    That's fine, but the model that these guys used is now illegal.
    What "cheap intercity bus travel" are you proposing? And yes, I mean "you"; you are the one who blew off the shutdown and suggested it's easy to start up again, right?
    OK, how easy? Given it's so easy, what do YOU propose?

  • Peco||

    Fung Wah has plenty of competitors - they always have. Sunshine and Lucky Star were the two original ones, then there were buses like Bolt and Mega, which are very cheap and very much thriving.

  • Rhywun||

    I am reminded of the wildly excessive safety requirements imposed on train travel in the US but nowhere else. Trains are basically designed like tanks. They must endure head-on collisions within certain strict tolerances, as if those happen every day. One result for example is that NYC subway cars are two or three times heavier than they need to be, which has obvious impacts on cost.

  • Tim||

    "Unexplained fires are a matter for the courts..."

  • Rhywun||

    this "wacky-yet-lovable institution" was "even more dangerous than we already knew."

    I wonder how much of this is ignorance, vs. straight-up racism.

  • Sevo||

    "I wonder how much of this is ignorance, vs. straight-up racism."

    Dunno if you're old enough to remember when 'Made in Japan' meant crummy. Well, 'Made in China' is the new 'Made in Japan'. If you go to China, it'll be obvious pretty quickly that the crap that gets the rep is that way because we pay that amount.

  • Rhywun||

    I don't think the buses are made in China, just the drivers.

  • Radioactive||

    yeah those buses...totally korean

  • PH2050||

    So, after getting Fung Wah and others shut down, the rules get changed to be less onerous. I'd say that, for Greyhound and others, this seems very...convenient.

  • Rhywun||

    The Church Lady agrees.

  • ||

    Fung Wah should file a lawsuit against the FMCSA. If the report is based on falsified or incorrect data, then there's got to be some legal basis for challenging the order.

  • JW||

    Fung Wah is now defunct. In March 2013, the Federal Motor Carrier Safety Administration (FMCSA) forced the company to cease operations, claiming it was an “imminent hazard to public safety.”

    Why?

    Follow
    The
    Money

  • Paul.||

    We're told, for instance, that the TSA is a "highly dangerous job". Could someone provide the number of TSA agents killed in the line of duty?

  • Raven Nation||

    You'd be in danger too if you were consuming all the food & drink confiscated not to mention the tools you experiment with.

    http://www.naturalnews.com/034.....urity.html

    http://infinitelegroom.com/201.....ted-items/

  • Raven Nation||

    And let's not forget this gem:

    http://reason.com/24-7/2013/03.....ive-collea

  • Ray||

    I really hate to be that guy, but nanny has a point here. I'm from Boston, and the Fung Wah bus was an absolute menace to society. If you were traveling down the Mass Pike and you saw a big white bus spewing black smoke and weaving in and out of its lane, you didn't even have to drive up close to know it was the FWB. They were notorious for being involved in hit and runs and failing to report incidents to the police except when it couldn't be hidden (I.e. when the bus rolled over or caught fire), hence the misleading "excellent safety record" cited in the article. That and the fact that even Masshole drivers learned to give them a WIDE berth.

  • Anonymoose||

    Yeah I'm sure a large bus filled with witnesses got away with dozens of unreported hit and runs...

  • Robert||

    I could easily believe that. The witnesses have an interest in collaborating with the driver in keeping such incidents unreported, because the passengers know they're at little risk in collision with smaller vehicles, and are benefiting by cheap service on a regular basis. It's like if you knew the auto shop you frequented gave you better prices because they used stolen parts. "We cheat the other guy and pass the savings on to you."

  • Ray||

    The culture among recent Chinese immigrants is not to report anything to the police (police in China simply show up and extort money from you). This is why organized crime is so powerful in Chinatowns. They may also have had an "inside man," which is the only reason I can think of why they were allowed to operate as long as they did.

    I can also attest to the fact that driving into Boston every single weekday for years, that Fung Wah Bus had an awfully hard time staying within its own lane, and rarely had any other cars within 100 feet of it.

  • Bryan C||

    "(police in China simply show up and extort money from you)."

    You mean you can pay the cops in China not to shoot your dog? That'd be awesome.

    "They may also have had an "inside man," which is the only reason I can think of why they were allowed to operate as long as they did."

    Or perhaps they did not have an inside man, and Greyhound does. Or perhaps they didn't have nearly as many problems as you think they did.

  • Robert||

    So then Jim Epstein ignored a class of info in his research, i.e. anecdote. I have to concede that for all it's denigrated, sometimes anecdote provides more accurate info than official stats. Whether that's the case here, I don't know, but it could be that enforcement looks unfair because of the stats but was based unofficially on anecdote.

  • Anonymoose||

    I heard somewhere you're a moron.

  • Anonymoose||

    and a pedophile.

  • Rhywun||

    How do you hide a hit and run when the cause is big bus traveling at a known place and time and driven by a known company? That just sounds... far-fetched.

  • Sevo||

    Ray| 7.16.13 @ 1:24PM |#
    "I really hate to be that guy,.."

    Well, you'd do better if you had a point.
    Let's say the buses are so bad that even Mass drivers avoid them; and the cops never notice?
    Sorry; if they're driving recklessly, the solution is to cite them. Enough of those and either it fixes itself or they go broke.
    Fail.

  • Ray||

    They were cited, repeatedly, and they changed absolutely nothing.

  • Denki||

    Comparisons of incident numbers are made between Fung Wah and Greyhound, these should have been cited in percentages since Greyhound operates a vastly larger network than Fung Wah.

    Statistics comparing car and bus accidents should have also been cited in percentages. Of course 34:23,000 sounds like a huge gap, but we all know the ratio of intercity bus to private car trips is not 1:1. The article also fails to distinguish wether those 23,000 fatal car accidents are intercity trips or local urban trips.

    Why did Van Hool refuse comment and not back up the claim by the article's author that the inspectors mis-interpreted their maintenance procedure? Van Hool wants to sell buses to any company so it's in their best interest to make such a statement, if it were true.

    Fung Wah failed to adequately monitor their employees work schedules and do alcohol and drug testing - yet this is written off because you could find these problems at any company. Just because these problems might be found elsewhere, does that mean they aren't problems?

    Read the shutdown order for yourself, specifically Section IV (page 6) that outlines the requirements Fung Wah needs to meet in order to be permitted to resume operations. This list is not particularly long or unreasonable, and contains courses of action we would expect from any transportation operator, be it land, sea, or air.

  • Sevo||

    "This list is not particularly long or unreasonable, and contains courses of action we would expect from any transportation operator, be it land, sea, or air."

    I see a WHOLE LOT of innuendo, claims absent evidence and then the statement quoted; it's just 'reasonable', right?
    Sniff, sniff; what is your incentive? It stinks.

  • GLK||

    "There are about 34 fatal intercity bus accidents annually as compared to 23,000 fatal passenger car crashes."

    I dislike it when people use stats like these to make their case. The only way this can be relevant is by breaking it down to miles traveled per person. It's like when people say airline travel is safest but never control for the fact that far more people travel by car. When comparing deaths per mile (as opposed to mindlessly stating a lot less Americans died in plane crashes than car crashes) the risk of death by flying and driving are actually about equal.

    To be clear I'm not defending the shut down of FWB, and I hate Government intervention as much or more than using bogus statistics to make a point.

  • Chris Dubuisson||

    "And if saving lives is the whole idea, regulators should more logically prohibit intercity travel in passenger cars"

    Not to worry, sooner or later they will. And they'll probably cite your statement in support of the initiative. Something along the lines of: "Even right wing libertarian Jim Epstein advocates banning long distance automobile travel."

  • Chris Dubuisson||

    "There are about 34 fatal intercity bus accidents annually as compared to 23,000 fatal passenger car crashes."

    A lot more people get sunburn during the day than at night, too.

  • d_remington||

    Anyone else try to figure out the joke until they realized that it was an actual bus company name?

  • Jcarlton||

    If Fung Wah was so safe, why did I get that little chill every time I saw on of their busses coming up behind me. In my extensive experience sharing the road with their busses, Fung Wah had the worst drivers and were most likely to tailgate and bully in traffic. I saw a lot of their busses daily and I can't remember one that wasn't driven aggressively. Nor one of their busses that didn't seem to have dents on their bumpers from previous encounters. Frankly I won't miss them or, for that matter any of the other casino bus operators.

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