> the railroad industry literally made this argumentNo, they didn't. The article you cite misdescribes the situation (for ideological reasons that are old hat to anyone familiar with the history of socialism). The railroads didn't argue that they should be able to spend zero money and make all the profits. They argued that they were paying money: they were paying employees fairly and adequately for their efforts. And having done that, they, as the owners of the company, took the profits that were left after meeting all company expenses, including paying labor fairly and adequately for its efforts. That's literally what owning a company means. An employee is not an owner. Profits are what the owners get after paying their employees.
A much better argument against the railroads in this case is that the railroad routes that their companies have exclusive rights to are granted by government regulation, not in a free market, so the revenues that are available to them, and which determine what their profits are after paying their employees, are not due to their sound business acumen, but to their ability to buy government regulations that favor them. But the article you cite does not say that (again, for well known ideological reasons).