You are right, "my bad:"
First, I've never traveled with pets. Amtrak rules DO prohibit animals in baggage--carry-on and otherwise--except for "service animals." The woman I described, apparently, was claiming her (minature) dog as an emotional support/service animal. She had her compartment door open when I walked by and I noticed her dog was not in a kennel and walking on the bed. In addition, the conductor had to ask her to keep the dog on the floor when she was in the dining car. Sounds like an abuse of the "emotional support" clause.
However there was also a time when one could bring kennels on as carry-ons as I do remember those items in the overhead rack on the Northeast Corridor trains. Obviously, that's been "outlawed."
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