What are cities, without freight of some kind?
Railways in the USA, even in their heyday, overwhelmingly favored freight over passenger service--a lot of books in the late 1800s got written complaining about this (with titles like "the railroad problem" etc).
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The incentive then, as now, is pretty simple: you can profit from carrying freight much more easily than from carrying passengers (frequency isn't a big deal, comfort is irrelevant, etc etc)
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