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Esch–Cummins Act

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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.

Other short titlesEsch–Cummins Act
Long titleAn Act To provide for the termination of Federal control of railroads and systems of transportation; to provide for the settlement of disputes between carriers and their employees; to further amend an Act entitled "An Act to regulate commerce," approved February fourth, eighteen hundred and eighty-seven, as amended, and for other purposes
Enactedbythe 66th United States Congress
EffectiveMarch 1, 1920
Quick facts Other short titles, Long title ...
Transportation Act of 1920
Great Seal of the United States
Other short titlesEsch–Cummins Act
Long titleAn Act To provide for the termination of Federal control of railroads and systems of transportation; to provide for the settlement of disputes between carriers and their employees; to further amend an Act entitled "An Act to regulate commerce," approved February fourth, eighteen hundred and eighty-seven, as amended, and for other purposes
Enacted bythe 66th United States Congress
EffectiveMarch 1, 1920
Citations
Public lawPublic Law 66-152
Statutes at Large41 Stat. 456
Codification
Acts amendedInterstate Commerce Act of 1887, Railway Administration Act of 1918
Acts repealedTitle III repealed by Railway Labor Act (1926)
Legislative history
  • Introduced in the House of Representatives as H.R. 10453 by John J. Esch (R‑WI) on November 8, 1919
  • Committee consideration by House Committee on Interstate and Foreign Commerce
  • Passed the House of Representatives on November 17, 1919 (203–115)
  • Passed the Senate on December 20, 1919 (46–30)
  • Reported by the joint conference committee on December 22, 1919 – February 18, 1920; agreed to by the House of Representatives on February 21, 1920 (250–150) and by the Senate on February 23, 1920 (47–17)
  • Signed into law by President Woodrow Wilson on February 28, 1920
United States Supreme Court cases
Railroad Commission of Wisconsin v. Chicago, Burlington & Quincy Railroad Co. (1922), Dayton-Goose Creek Railway Co. v. United States (1924)
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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

Footnotes

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