U.s. Government Seizes Railroads | Research & Encyclopedia Articles

U.s. Government Seizes Railroads

United States 1917-1920

Synopsis

The nation's railroads were under government control during World War I. Some 360,000 miles of track and more than two million workers were directed by the United States Railroad Administration (USRA) from 26 December 1917 until the passing of the Transportation Act of 1920 on 28 February 1920. The act, also known as the Cummins-Esch Law, remanded operation of the railroads to private control on 1 March 1920. Railroads benefited from regulatory control, functioned efficiently, and prospered from construction and infrastructure improvements. Additionally, the government guaranteed a six-month profit after the transfer and agreed to dispense more than $530 million in federal funds to the railroads. The act was President Woodrow Wilson's final victory for comprehensive federal railroad regulation, which he implemented to lend stability and rationale to the industry. Further, the act permitted railroads joint use of facilities and allowed traffic agreements between railroads that previously had been illegal under the Sherman Antitrust Act (1890) and the Clayton Act (1914).

Timeline

• 1898: United States defeats Spain in the three-month Spanish American War. As a result, Cuba gains it independence, and the United States purchases Puerto Rico and the Philippines from Spain for $20 million.
• 1903:

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