21 März 1918 Jahr - Element 8 - The Railroad Control Act & 1918 Joint Resolution

Beschreibung:

OMAHA PLATFORM
Element: #8, Public ownership of railroads, telephone, telegraph
Location: Transportation Platform
Goal/Importance: Government should own and operate in interest of the people railroads, telegraph, and telephone.

EVENT
People/Party: U.S. Government
Location: Washington, D.C.
Impact: Temporary government control of all U.S. railroads, telephones, and telegraphic services

DETAILS
The Hepburn Rate Act of 1906 caused economic struggles for the railroad industry. Intended to give the Interstate Commerce Commission (ICC) power to regulate "fair, just, and reasonable" passenger and shipping rates charged by the railroads, the rate caps proved unprofitable for some railroad systems and forced them into receivership to repay debts. The railroad system also faltered under heavy demands of the wartime economy in 1917 preventing materials from being loaded and shipped on trains. During World War I on December 26, 1917, President Woodrow Wilson issued order for federal government to nationalize entire railroad system under the U.S. Railroad Administration and on March 21, 1918 the Railroad Control Act was passed into law. The federal government made grand efforts to consolidate and streamline services investing more than one-billion in transpiration systems. Congress on July 16, 1918 adopted a joint resolution that gave the president the power to possess and control all U.S. telegraph and telephone systems during war time, which soon after on July 22, 1918, the President enacted. Justification was mostly aimed at Western Union's telegraph service's monopoly status, exorbitant rates, quality and information control, and public service concerns. Eventually, all services were returned to their private owners for all services.

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