United States Railway Association
Encyclopedia
The United States Railway Association (USRA) was a government-owned corporation
created by United States federal law that oversaw the creation of Conrail, a railroad corporation that would acquire and operate bankrupt and other failing freight railroads. USRA operated from 1974 to 1987.
provided interim funding to bankrupt railroads and authorized creation of the Consolidated Rail Corporation (Conrail), another government corporation.
The 3R Act authorized the USRA to take over the powers of the Interstate Commerce Commission
(ICC) with respect to allowing the bankrupt railroads to abandon unprofitable lines. The USRA was incorporated February 1, 1974, and Edward G. Jordan, an insurance executive from California, was named president on March 18 by President Richard Nixon
. Arthur D. Lewis of Eastern Air Lines
was appointed chairman April 30, and the rest of the board was named May 30 and sworn in July 11.
The U.S. Supreme Court affrimed the constitutionality
of the 3R Act in deciding the Regional Rail Reorganization Act Cases on December 16, 1974.
(AAR), an industry trade group. USRA announced a preliminary plan on February 26, 1975, and the ICC then conducted public hearings on the draft plan. USRA published the Final System Plan on July 26, 1975.Vol. 1. Vol. 2 The plan called for Conrail to consist of lines from Penn Central and six other companies: the Ann Arbor Railroad (bankrupt 1973), Erie Lackawanna Railway
(1972), Lehigh Valley Railroad
(1970), Reading Company
(1971), Central Railroad of New Jersey
(1967) and Lehigh and Hudson River Railway
(1972). Controlled railroads and jointly owned railroads such as Pennsylvania-Reading Seashore Lines
were also included. (See List of railroads transferred to Conrail.) The final plan also identified certain commuter rail lines (not designated for freight service) that could be purchased by state transportation agencies from Conrail following the initial transfer.
Congress approved the final plan on November 9, 1975, and on February 5, 1976 President Gerald Ford
signed the Railroad Revitalization and Regulatory Reform Act
of 1976 (the "4R Act"), which included this Final System Plan, into law.
USRA published a supplementary report in 1986 which provides a complete overview of the disposition of the affected rail lines and related properties.
Government-owned corporation
A government-owned corporation, state-owned company, state-owned entity, state enterprise, publicly owned corporation, government business enterprise, or parastatal is a legal entity created by a government to undertake commercial activities on behalf of an owner government...
created by United States federal law that oversaw the creation of Conrail, a railroad corporation that would acquire and operate bankrupt and other failing freight railroads. USRA operated from 1974 to 1987.
Legislation and establishment of USRA
In the Regional Rail Reorganization Act of 1973, also known as the "3R Act," CongressUnited States Congress
The United States Congress is the bicameral legislature of the federal government of the United States, consisting of the Senate and the House of Representatives. The Congress meets in the United States Capitol in Washington, D.C....
provided interim funding to bankrupt railroads and authorized creation of the Consolidated Rail Corporation (Conrail), another government corporation.
The 3R Act authorized the USRA to take over the powers of the Interstate Commerce Commission
Interstate Commerce Commission
The Interstate Commerce Commission was a regulatory body in the United States created by the Interstate Commerce Act of 1887. The agency's original purpose was to regulate railroads to ensure fair rates, to eliminate rate discrimination, and to regulate other aspects of common carriers, including...
(ICC) with respect to allowing the bankrupt railroads to abandon unprofitable lines. The USRA was incorporated February 1, 1974, and Edward G. Jordan, an insurance executive from California, was named president on March 18 by President Richard Nixon
Richard Nixon
Richard Milhous Nixon was the 37th President of the United States, serving from 1969 to 1974. The only president to resign the office, Nixon had previously served as a US representative and senator from California and as the 36th Vice President of the United States from 1953 to 1961 under...
. Arthur D. Lewis of Eastern Air Lines
Eastern Air Lines
Eastern Air Lines was a major United States airline that existed from 1926 to 1991. Before its dissolution it was headquartered at Miami International Airport in unincorporated Miami-Dade County, Florida.-History:...
was appointed chairman April 30, and the rest of the board was named May 30 and sworn in July 11.
The U.S. Supreme Court affrimed the constitutionality
Constitutionality
Constitutionality is the condition of acting in accordance with an applicable constitution. Acts that are not in accordance with the rules laid down in the constitution are deemed to be ultra vires.-See also:*ultra vires*Company law*Constitutional law...
of the 3R Act in deciding the Regional Rail Reorganization Act Cases on December 16, 1974.
Mandate to create plan for Conrail
Under the 3R Act, the USRA was to create a "Final System Plan" to decide which lines should be included in the new Consolidated Rail Corporation. Unlike most railroad consolidations, only the designated lines were to be taken over; the others were to remain with the old companies along with non-rail related properties. The plan was formulated by the Association of American RailroadsAssociation of American Railroads
The Association of American Railroads is an industry trade group representing primarily the major freight railroads of North America . Amtrak and some regional commuter railroads are also members...
(AAR), an industry trade group. USRA announced a preliminary plan on February 26, 1975, and the ICC then conducted public hearings on the draft plan. USRA published the Final System Plan on July 26, 1975.Vol. 1. Vol. 2 The plan called for Conrail to consist of lines from Penn Central and six other companies: the Ann Arbor Railroad (bankrupt 1973), Erie Lackawanna Railway
Erie Lackawanna Railway
The Erie Lackawanna Railway , known as the Erie–Lackawanna Railroad until 1968, was formed from the 1960 merger of the Erie Railroad and the Delaware, Lackawanna and Western Railroad...
(1972), Lehigh Valley Railroad
Lehigh Valley Railroad
The Lehigh Valley Railroad was one of a number of railroads built in the northeastern United States primarily to haul anthracite coal.It was authorized April 21, 1846 in the U.S. state of Pennsylvania and incorporated September 20, 1847 as the Delaware, Lehigh, Schuylkill and Susquehanna Railroad...
(1970), Reading Company
Reading Company
The Reading Company , usually called the Reading Railroad, officially the Philadelphia and Reading Rail Road and then the Philadelphia and Reading Railway until 1924, operated in southeast Pennsylvania and neighboring states...
(1971), Central Railroad of New Jersey
Central Railroad of New Jersey
The Central Railroad of New Jersey , commonly known as the Jersey Central Lines or CNJ, was a Class I railroad with origins in the 1830s, lasting until 1976 when it was absorbed into Conrail with the other bankrupt railroads of the Northeastern United States...
(1967) and Lehigh and Hudson River Railway
Lehigh and Hudson River Railway
The Lehigh and Hudson River Railway was the smallest of the six railroads that were merged into Conrail in 1976. It was a bridge line running northeast-southwest across northwestern New Jersey, connecting the line to the Poughkeepsie Bridge at Maybrook, New York with Easton, Pennsylvania, where it...
(1972). Controlled railroads and jointly owned railroads such as Pennsylvania-Reading Seashore Lines
Pennsylvania-Reading Seashore Lines
Pennsylvania-Reading Seashore Lines was a railroad that operated in southern New Jersey in the 20th century. It was created as a joint venture of the Pennsylvania Railroad and the Reading Company .- History :...
were also included. (See List of railroads transferred to Conrail.) The final plan also identified certain commuter rail lines (not designated for freight service) that could be purchased by state transportation agencies from Conrail following the initial transfer.
Congress approved the final plan on November 9, 1975, and on February 5, 1976 President Gerald Ford
Gerald Ford
Gerald Rudolph "Jerry" Ford, Jr. was the 38th President of the United States, serving from 1974 to 1977, and the 40th Vice President of the United States serving from 1973 to 1974...
signed the Railroad Revitalization and Regulatory Reform Act
Railroad Revitalization and Regulatory Reform Act
The Railroad Revitalization and Regulatory Reform Act of 1976, often called the "4R Act," is a United States federal law that established the basic outlines of regulatory reform in the railroad industry and provided transitional operating funds following the 1970 bankruptcy of Penn Central...
of 1976 (the "4R Act"), which included this Final System Plan, into law.
USRA published a supplementary report in 1986 which provides a complete overview of the disposition of the affected rail lines and related properties.