Esch–Cummins Act

The Transportation Act, 1920, commonly known as the Esch–Cummins Act, was a United States federal law that returned railroads to private operation after World War I, with much regulation.^[1] It also officially encouraged private consolidation of railroads and mandated that the Interstate Commerce Commission (ICC) ensure their profitability. The act was named after Rep. John J. Esch and Sen. Albert B. Cummins.

Background

The United States had entered World War I in April 1917, and the government found that the nation's railroads were not prepared to serve the war effort. On December 26, 1917, President Woodrow Wilson had ordered that U.S. railroads be nationalized in the public interest. This order was implemented through the creation of the United States Railroad Administration.^[2] Congress ratified the order in the Railway Administration Act of 1918.^[3]

Major provisions

• Terminated federal control of railroads from March 1, 1920.
• Authorized the government to make settlements with railroad carriers for matters caused by nationalization, such as compensation and other expenses.
• Directed the ICC to prepare and adopt a plan for the consolidation of the railway properties of the United States into a limited number of systems. See Ripley Plan to consolidate railroads into regional systems.
• Granted authority to the ICC to set minimum shipping rates, oversee railroads' financial operations, and regulate acquisitions and mergers.
• Established procedures for settling labor disputes between railroads and employees. A Railroad Labor Board was created to regulate wages and settle disputes.^[4]

Subsequent legislation

Title III of the Esch–Cummins Act, which pertained to labor disputes, was repealed in 1926 by the Railway Labor Act.^[5]

See also

• Interstate Commerce Act of 1887
• Elkins Act of 1903
• Mann-Elkins Act of 1910
• Railway Labor Act of 1926
• History of rail transport in the United States