America on Track: Passenger Rail in U.S. History
May 1, 1971 marked the beginning of Amtrak, America’s national passenger railroad company. The founding of this federally chartered corporation, which has long been responsible for operating intercity passenger rail travel, signified one of many turning points for transportation innovation in the U.S. All aboard as we discuss key moments in passenger rail, from its inception in the 19th century to ongoing modern-day innovations.
Laying the Tracks
Passenger rail existed in the U.S. as early as 1827, when the Baltimore and Ohio railroad was chartered. It spanned Virginia, Maryland, West Virginia, Pennsylvania, Washington, D.C., Ohio, Indiana, Illinois, and eventually Missouri.
From there, rail technology continued to modernize. Although the Civil War halted railroad production for several years, usage continued to rise during this period. Once the war ended, the construction of the nation’s first transcontinental railroad was completed in 1869, with four more built by 1894. By the dawn of the 20th century, rail travel dominated the U.S.
The Train Gets Competition
In 1916, rail travel accounted for 98% of long-distance trips, carrying over 40 million passengers. At the time, privately owned rail companies managed both freight and passenger services.
As the 20th century progressed, however, trains began losing ground, with Americans increasingly opting to travel via automobiles, buses, and eventually airplanes. Even the introduction of sleek, modern diesel trains couldn't halt the decline. By 1940, rail’s share of passenger traffic had dropped to 67%, with total passenger-miles shrinking from 42 billion in 1916 to just 25 billion.
World War II provided a temporary resurgence, as wartime restrictions such as gas rationing and troop transport needs drove ridership to new heights. During this time, rail’s market share climbed to a record 94 billion passenger-miles.
After the war, railroads upgraded their aging fleets with stylish, high-speed streamliners, but the resulting rail travel revival proved to be short-lived. By 1950, passenger rail’s share of the travel market had fallen again. Further contributing to rail’s mid-century decline was the emphasis on federal funding for highway and airport development, on top of the fact that the growing popularity of cars and planes were reshaping American travel habits.
When the postal service shifted mail transport away from trains in 1967, many routes lost crucial revenue. With the railroads seeking to abandon most passenger services, the federal government stepped in.
Passenger Rail Revival
As intercity passenger rail declined, multiple rescue efforts were proposed. One early suggestion, the 1961 Doyle Report by Air Force Officer John P. Doyle, advocated for consolidating private rail services into a unified system.
By 1969, a range of congressional proposals aimed to revive passenger service. The urgency escalated when the Penn Central line, which encompassed a large swath of the northeastern corridor, announced it would discontinue 34 passenger routes amid bankruptcy. Finally, Congress passed the Rail Passenger Service Act in October 1970, which President Nixon signed into law.
The Act established the National Railroad Passenger Corporation (NRPC), a quasi-public entity that would operate like a private company while receiving government funding.
Railroads could opt into the system by contributing cash or equipment based on their recent losses. In return, they received NRPC stock and were relieved of the obligation to run intercity passenger trains after May 1, 1971, unless selected for inclusion in a new federally funded core network.
Of the 26 railroads still offering intercity service, 20 joined the NRPC. Many in Washington saw the move as a temporary fix, one that would merely delay the inevitable. However, public support proved resilient. Instead of a farewell, Amtrak became a long-term fixture in American transportation.
Passenger rail travel has been an integral part of American life for more than 100 years now. Despite shifts in technology and advancements in other realms such as aerospace, millions of Americans still enjoy traveling via Amtrak each and every year.
