The Transportation Act, 1920, commonly known as the Esch–Cummins Act, was a United States federal law that returned railroads to private operation after World War I, with much regulation.
[1] It also officially encouraged private consolidation of railroads and mandated that the Interstate Commerce Commission (ICC) ensure their profitability.
On December 26, 1917, President Woodrow Wilson had ordered that U.S. railroads be nationalized in the public interest.
This order was implemented through the creation of the United States Railroad Administration.
[2] Congress ratified the order in the Railway Administration Act of 1918.