The first commercial diesel-electric locomotive in the United States began service in 1925. It was used as a switch engine. The Burlington Zephyr, the world's first main-line train powered by a diesel-electric locomotive, began regular passenger service in 1934. The year before, the first of the new streamlined passenger trains, the Union Pacific's City of Salina, had begun operation. Other railroads soon put similar trains into service. These trains included the Santa Fe's Super Chief and the New York, New Haven, and Hartford's Comet. The Santa Fe put the first regularly scheduled diesel-electric freight train into service in 1940. By 1960, these trains had entirely replaced steam locomotives on main-line railroads in the United States.
Economic recovery -- and decline. After the United States entered World War II in 1941, the nation's railroads handled more business than ever before. Passenger and freight trains ran day and night, and almost every train was packed to capacity. During the war, the government left the railroads under private control.
When the war ended in 1945, much railroad equipment was nearly worn out from overuse. During the late 1940's and early 1950's, the railroads spent billions of dollars to replace worn-out equipment. But they continued to have difficulty meeting the ever-increasing competition from other forms of transportation. The financial condition of the industry worsened. In 1958, Congress passed legislation enabling the railroads to discontinue hundreds of unprofitable passenger runs. But some railroads continued to lose money during the 1960's.
Railroads today. In 1970, the U.S. government established Amtrak to run the nation's intercity passenger trains and so save the railroad companies millions of dollars yearly in losses. But the financial condition of some railroads -- especially those in the Northeast -- continued to worsen. The Railroad Reorganization Act of 1973 was designed to help reverse the huge losses of several railroads and to guarantee continued rail service. In 1976, six bankrupt Northeastern railroads were reorganized by the federal government as a private corporation called the Consolidated Rail Corporation (Conrail). In this reorganization, the federal government became the corporation's chief stockholder. In 1987, the government sold its Conrail stock to private investors.
In 1980, Congress passed the Staggers Rail Act, which was designed to help railroads increase their profits. The law greatly reduced regulation of rates and various other aspects of railroad operations. It helped railroads become more competitive with other forms of transportation, and the financial health of major U.S. railroads improved in the 1990's.
Contributor: William L. Withuhn, M.B.A., Curator of Transportation, National Museum of American History, Smithsonian Institution.
Additional resources
Level I
Fisher, Leonard E. Tracks Across America: The Story of the American Railroad, 1825-1900. Holiday Hse., 1992.
Flatley, Dennis R. The Railroads: Opening the West. Watts, 1989.
Miller, Marilyn. The Transcontinental Railroad. Silver Burdett, 1986.
Spangenburg, Ray, and Moser, D. K. The Story of America's Railroads. Facts on File, 1991.
Level II
Armstrong, John. The Railroad--What It Is, What It Does. Rev. ed. 1990. Reprint. Simmons-Boardman, 1993.
Drury, George H., comp. The Train-Watcher's Guide to North American Railroads. 2nd ed. Kalmbach, 1992. The Historical Guide to North American Railroads. Rev. ed. 1991.
Jane's World Railways. Jane's, published annually.
SOURCE: IBM 1999 WORLD BOOK