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Reviewed by:
  • American Railroads *
  • Jon R. Huibregtse (bio)
American Railroads. By John F. Stover. Chicago: University of Chicago Press, 1997. Pp. xviii+306; illustrations, index. $43.00 (cloth); $16.95 (paper).

John F. Stover and the University of Chicago should be commended for publishing a second edition of his book, American Railroads. In the preface to the first edition, editor Daniel J. Boorstin wrote that Stover’s work “is a parable of the changing American economy and the changing role of the government in American life” (p. xiv). The second edition, which could be subtitled, “The Rise, Fall, and Rebirth of an Industry,” further illustrates the incisiveness of Boorstin’s comment. When first published in 1961, railroads seemed to be dying a slow death, but the industry and government have adapted to numerous challenges, so railroads remain a vital element of the American economy.

Stover has added two chapters that examine the evolution of the industry since 1960. The carriers and government eventually responded to changing circumstances with uncharacteristic vigor. In the same pithy style he used to discuss the growth of the American railroad network in earlier chapters, Stover analyzes the challenges of the 1960s and 1970s. Both passenger and freight traffic declined dramatically, primarily because of increased use automobiles, trucks, and jets. Railroads responded by seeking to merge with competitors. “In 1957 about 50 merger applications had been proposed to the Interstate Commerce Commission. The ICC approved less than half of the requests” (p. 231). Mergers that were well planned and executed often saved struggling carriers, allowing them to eliminate repetitive service and to cut labor and maintenance costs. The merger of the two largest roads, the New York Central Railroad and the Pennsylvania Railroad, was upheld by the United States Supreme Court in 1968, but the new Penn Central filed for bankruptcy in June 1970, in one of the largest business failures in American history.

After the collapse of the Penn Central, the federal government responded by creating the National Railroad Passenger Corporation to relieve the Penn Central and twelve other struggling carriers of their unprofitable passenger service. The new legislation created Amtrak which began operations in May 1971. The relationship between the government [End Page 666] and the railroads changed dramatically by the 1970s. For most of the twentieth century the federal government had maintained tight regulatory control over railroads, forcing carriers to seek permission whenever they wanted to increase rates or alter service.

In the final chapter Stover turns his attention to the Staggers Act of 1980. Signed by President Jimmy Carter in October, the new legislation “loosened ICC regulations on ratemaking, marketing, mergers, and abandonments” (p. 245). Deregulation pleased railroad executives, who were relieved to be free of some of the more onerous aspects of ICC supervision. Deregulation was the palliative that many had hoped regulation would be a century earlier. By the 1990s deregulation, cost cutting, and technological advancements had again made railroads a strong, integral part of the economy. In 1995 freight traffic reached a record high, 1,305 billion ton-miles, and railroads carried 40.6 percent of intercity freight.

The first eight chapters will be familiar to those who have read the first edition. Stover crisply reconstructs the story of the American transportation network prior to the introduction of railroads in the 1820s. His discussion of the growth of turnpikes, canals, and railroads is illuminating. Just as the industry adapted to challenges in the late twentieth century, railroads accommodated institutional and government changes in the previous century. During the turnpike and canal era governments first assisted private corporations, setting an important precedent for railroads. Canals and turnpikes grew to meet demand, but railroads quickly surpassed both because they offered cheaper, more dependable service.

The strength of Stover’s narrative is its economy. American Railroads is a succinct synthesis of railroad history. As Stover notes, little has been written concerning railroads in the twentieth century. His two new chapters add useful data concerning the impact of deregulation and begin to fill a void in the historiography. Scholars, students, and railroad enthusiasts will find the updated annotated bibliography and list of important dates useful tools.

Jon R. Huibregtse

Dr. Huibregtse teaches twentieth...

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