The United States Railway Association (USRA) was a government-owned corporation created by United States federal law that oversaw the creation of

Conrail Conrail , formally the Consolidated Rail Corporation, was the primary Class I railroad in the Northeastern United States between 1976 and 1999. The trade name Conrail is a portmanteau based on the company's legal name. It continues to do busi ...

, a railroad corporation that would acquire and operate

bankrupt Bankruptcy is a legal process through which people or other entities who cannot repay debts to creditors may seek relief from some or all of their debts. In most jurisdictions, bankruptcy is imposed by a court order, often initiated by the debto ...

and other failing freight

railroad Rail transport (also known as train transport) is a means of transport that transfers passengers and goods on wheeled vehicles running on rails, which are incorporated in tracks. In contrast to road transport, where the vehicles run on a prep ...

s. USRA operated from 1974 to 1986.

Legislation and establishment of USRA

In the Regional Rail Reorganization Act of 1973, also known as the "3R Act,"

Congress A congress is a formal meeting of the representatives of different countries, constituent states, organizations, trade unions, political parties, or other groups. The term originated in Late Middle English to denote an encounter (meeting of ...

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 The Supreme Court of the United States (SCOTUS) is the highest court in the federal judiciary of the United States. It has ultimate appellate jurisdiction over all U.S. federal court cases, and over state court cases that involve a point o ...

affirmed the

constitutionality Constitutionality is said to be the condition of acting in accordance with an applicable constitution; "Webster On Line" the status of a law, a procedure, or an act's accordance with the laws or set forth in the applicable constitution. When l ...

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 Railroads (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.U.S. Railway Association (USRA), Washington, DC (1975-02-26). "Fact Sheet: The Preliminary System Plan for Restructuring the Railroads of the Northeast and Midwest." USRA published the Final System Plan on July 26, 1975.USRA (1975-07-26). ''Final System Plan for Restructuring Railroads in the Northeast and Midwest Region pursuant to the Regional Rail Reorganization Act of 1973.'' ("FSP"):Vol. 1

Vol. 2
/ref> The plan called for Conrail to consist of the complete Penn Central network (a conglomerate of three massive former northeastern systems — the

Pennsylvania Railroad The Pennsylvania Railroad (reporting mark PRR), legal name The Pennsylvania Railroad Company also known as the "Pennsy", was an American Class I railroad that was established in 1846 and headquartered in Philadelphia, Pennsylvania. It was named ...

New York Central Railroad The New York Central Railroad was a railroad primarily operating in the Great Lakes and Mid-Atlantic regions of the United States. The railroad primarily connected greater New York and Boston in the east with Chicago and St. Louis in the Midw ...

and

New York, New Haven & Hartford Railroad The New York, New Haven and Hartford Railroad , commonly known as The Consolidated, or simply as the New Haven, was a railroad that operated in the New England region of the United States from 1872 to December 31, 1968. Founded by the merger of ...

) as well as the following six railroads: * Ann Arbor Railroad (bankrupt 1973) *

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 & Western Railroad. The official motto of the line was "The Friendly Service Route ...

(1972) *

Lehigh Valley Railroad The Lehigh Valley Railroad was a railroad built in the Northeastern United States to haul anthracite coal from the Coal Region in Pennsylvania. The railroad was authorized on April 21, 1846 for freight and transportation of passengers, goods, ...

(1970) * Reading Company (1971) *

Central Railroad of New Jersey The Central Railroad of New Jersey, also known as the Jersey Central or Jersey Central Lines , was a Class I railroad with origins in the 1830s. It was absorbed into Conrail in April 1976 along with several other prominent bankrupt railroads of ...

(1967); and * Lehigh & Hudson River Railway (1972). Controlled railroads and jointly owned railroads such as

Pennsylvania-Reading Seashore Lines The Pennsylvania-Reading Seashore Lines was a railroad that operated in South Jersey in the 20th century. It was created in 1933 as a joint consolidation venture between two competing railroads in the region: the Pennsylvania Railroad and the Rea ...

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.USRA. FSP, Vol. I, Appendix to Part II, Section D: "Designations to ConRail for Acquisition by Transportation Authorities." Congress approved the final plan on November 9, 1975. President Gerald Ford signed the

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 fo ...

of 1976 (the "4R Act") on February 6 of that year, 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.

Dissolution

Congress abolished the USRA effective January 1, 1987.Omnibus Budget Reconciliation Act of 1986, Pub.L. 99-509, title IV, Sec. 4031, 100 Stat. 1906. Approved 1986-10-21. .

References

{{Authority control Conrail United States railroad regulation 1974 establishments in the United States 1987 disestablishments in the United States

Legislation and establishment of USRA

Mandate to create plan for Conrail

Dissolution

See also

References