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> but why to ask California State for subsidy? Why not to build it using private funds?

Because you can't, in practice, acquire the rights of way necessary to build a substantial railroad/hyperloop/freeway or other major infrastructure project of that type without government (specifically, without use of eminent domain).

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But as I recall, the gov't can use eminent domain to give land to a private entity if they're in favor of the idea for the "public good." Or am I way off base here...?

Rinon, you are correct. The Supreme Court (perhaps foolishly) decided that private to private transfer of land is permissible under eminent domain.

http://en.wikipedia.org/wiki/Kelo_v._City_of_New_London

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