The Road to Deregulation

This article examines the history of regulation and deregulation of the railroad industry. The author explains how both the trucking and railroad industries were both regulated, but adapted to market changes differently. The 1887 Act to Regulate Commerce and the Motor Carrier Act of 1935 are both discussed, as well as how the rise of the suburbs in post-World War II favored private trucking and the advantages trucking has in the short haul market. The author also explains how railroads lost most of their transcontinental produce market in the 1970s, but are working to regain it. Finally, the author suggests that although railroads won their battle for deregulation, they need to improve service.