The Why and When of Amtrak

On May 12, 2015, an Amtrak Northeast Regional train (#188) bound for New York City derailed and crashed on the Northeast Corridor in the Port Richmond neighborhood of Philadelphia, Pennsylvania. Eight passengers died and over 200 were injured. The incident is still under investigation as of the time of this post.

With the Amtrak system in the news, it is worth taking a look at the history of rail travel in America and the changes over time that led to the creation of Amtrak.

Amtrak: The Preservation of Rail Travel

From the mid-19th century until approximately 1920, nearly all intercity travelers in the United States moved by rail. The rails and the trains were owned and operated by private, for-profit organizations. Over 60,000 railroad passenger cars were in use in 1929.

Beginning in the 1920s, passenger rail’s popularity diminished. Rail passenger revenues declined dramatically between 1920 and 1934 because of the rise of automobile ownership. During the same period, many Americans abandoned rail travel in favor of interstate bus companies like Greyhound Lines.

In the 1930s railroads tried to recapture travelers with service improvements and new, faster diesel-powered streamliners, such as the gleaming silver Pioneer Zephyr and Flying Yankee. Despite the improvements, rail ticket sales continued to decline relative to other options. By 1940 railroads held only 67 percent of passenger-miles in the United States.

World War II broke the malaise. During the war, troop movements and restrictions on automobile fuel generated a sixfold increase in passenger traffic compared to its lowest point during the Great Depression.

After the war, railroads rejuvenated overworked and neglected fleets with fast and often luxurious streamliners – epitomized by the Super Chief and California Zephyr – which inspired the last major resurgence in passenger rail travel.

The postwar resurgence was short-lived. Few trains generated profits and most produced losses. By 1965, only 10,000 rail passenger cars were in operation, 85 percent fewer than in 1929.

In the late 1960s, the end of passenger rail in the United States seemed imminent. Requests for termination of services began for some lines followed by bankruptcy filings by many rail companies.

In 1970, Congress passed, and President Richard Nixon signed into law, the Rail Passenger Service Act. Proponents of the bill sought government funding to assure the continuation of passenger trains. They conceived the National Railroad Passenger Corporation (NRPC), a hybrid public-private entity that would receive taxpayer funding and assume operation of intercity passenger trains. The original working brand name for NRPC was Railpax, but shortly before the company started operating it was changed to Amtrak. There were several key provisions:

  • Any railroad operating intercity passenger service could contract with the NRPC, thereby joining the national system.
  • Participating railroads bought into the NRPC using a formula based on their recent intercity passenger losses. The purchase price could be satisfied either by cash or rolling stock; in exchange, the railroads received NRPC common stock.
  • Any participating railroad was freed of the obligation to operate intercity passenger service after May 1, 1971, except for those services chosen by the Department of Transportation (DOT) as part of a “basic system” of service and paid for by NRPC using its federal funds.
  • Railroads that chose not to join the NRPC system were required to continue operating their existing passenger service until 1975 and thenceforth had to pursue the customary ICC approval process for any discontinuance or alteration to the service.

Amtrak began operations on May 1, 1971. The corporation was molded from the passenger rail operations of 20 of the 26 major railroads in operation at the time. The railroads contributed rolling stock, equipment, capital, and crews. In return, they received approval to discontinue their passenger services, and their choice of tax breaks or common stock in Amtrak. Amtrak received no rail tracks or right-of-way at its inception. Railroads that shed passenger operations were expected to host Amtrak trains on their tracks, for a fee.

On September 21, 2012, Amtrak launched a new website, History.Amtrak.com, dedicated to providing a view into its extensive archive and as a place to share in its rich history. The site features a collection of historic photographs, ads, route guides, timetable covers and other resources celebrating Amtrak’s more than 40 years as the nation’s intercity passenger rail provider.

The Amtrak History site contains an excellent Archive of Amtrak photos, advertisements, and posters like the items below.

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One thought on “The Why and When of Amtrak”

  1. In its early days there was apparently pressure by members of Congress for Amtrak to include their states or districts in its routes.

    Senate Majority Leader Mike Mansfield was particularly miffed about proposed service in Montana.
    This snippet comes from the Toledo Blade for 29 April 1971.

    1amtrak

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