This examination of the relationship of the economy to political process in the United States from 1877 to 1916 shows how the railroad industry encouraged and relied on national politics to solve its economic problems, and created a precedent for government regulation of the economy in the twentieth century. The continuity in governmental regulation from 1877 to 1900, in the Progressive Era, and in the administrations of Roosevelt, Taft, and Wilson are pointed out. The origin of each major federal railroad act and contending forces is analyzed. Federal regulation of the railroads, probably the most important example of federal intervention in the economy from the Civil War to World War I is used as a key in reassessing the motives behind Progressivism. Originally published in 1965. The Princeton Legacy Library uses the latest print-on-demand technology to again make available previously out-of-print books from the distinguished backlist of Princeton University Press. These editions preserve the original texts of these important books while presenting them in durable paperback and hardcover editions. The goal of the Princeton Legacy Library is to vastly increase access to the rich scholarly heritage found in the thousands of books published by Princeton University Press since its founding in 1905.

Pursuant to a congressional request, GAO reviewed the principal factors affecting the railroad industry's ability to compete with other transportation modes for intercity freight, focusing on how federal laws: (1) affect railroad labor costs; and (2) influence the railroads' competitive position. GAO found that: (1) reduced federal regulation has given railroads greater freedom to competitively price their services, but as the railroads have become more competitive, so have their competitors in the trucking and barge industries; (2) the Railroad Retirement Act of 1937, the Federal Employers' Liability Act, and the Railway Labor Act of 1926, which govern railroad employee benefits and labor relations, have resulted in higher overall labor costs; (3) if railroads could reduce their labor costs, they would be in a better position to competitively price their services and compete for intercity freight; (4) publicly financed interstate highways and waterways give the trucking and barge industries a competitive price advantage over railroads, since freight railroads maintain their own rights of way with minimal federal assistance, while trucks and barges use rights of way that the public helps to fund; and (5) rail rates could become increasingly attractive compared with truck or barge rates, if all modes operated under the same labor laws and were equally responsible for their rights of way.

The story of imposing government regulation on the American rairoad industry in the early 20th century.

Numerous countries have attempted to improve the performance of their railways by introducing more competition, but there is fierce debate and no consensus on how this is best achieved. This book reveals how railways were an obvious target for reform because they were often losing traffic and money, and because the government was typically deeply involved as either owner or regulator.