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Thanks for this comment: I learned something! I guess I had just assumed passenger services would be the priority but it make sense that railroad operators would follow the money!
In Europe, you often have freight trains pull into a passing siding to let the commuter train with passengers pass.
The reason for this can be traced to size, cultural focus on cars for transport which caused US passenger operations to fall out of favor when the Interstate road network got big and airlines solved the cross continent problem of distance.
Across the pond with older cities, we do not have the luxery of a lot of space to focus on the car / fancy road networks, and older cities aren't something you can just knock down to make room either.
So the train have gotten a lot more favor and accepted as a means of transportation throughout time.
Also the trackage is often owned by the government rather than a private company in some cases even interesting state owned companies.
This does mean that crossing borders with trains in Europe can get... interesting with different signalling equipment / electrical systems, although there are some standards happening, it is far from universal.
All in all, this means that on this fictional part of the US we have to operate, you can do either or operations you want.
I really like that you do not have to worry about passenger opinion or timetables...
Especially as we had a derail and had to put two cars in the repair shop for a couple of days... FULL of passengers! :D
Here in the UK passenger traffic has absolute priority and signalling staff are assessed on the minutes lost by passenger trains, with the distinct possibility of a meeting with the regional controller if their minutes lost are high or are above minimum on too many occasions.