Railway Express Agency Sign: Vintage 1930’s Porcelain Depot Sign – VS6336

Railway Express Agency History

Railway Express sign, Northern Pacific Railway Depot, Washington St. & Railroad Ave, Ritzville, Washington, U.S. The depot is a contributing property of the Ritzville Historic District. (Wikimedia Commons)

The Railway Express Agency (REA) was a significant American transportation company that played a crucial role in the distribution and transportation of goods via railways. It was founded in 1917 as a consolidation of several smaller express companies, including American Express's railway express division.

The Railway Express Agency (REA), founded as the American Railway Express Agency and later renamed the American Railway Express Inc., operated in the United States from 1918 to 1975. REA arranged transport and delivery via existing railroad infrastructure, much as today's UPS or DHL companies use roads and air transport. It was created through the forced consolidation of existing services into a national near-monopoly to ensure the rapid and safe movement of parcels, money, and goods during World War I.

Here is a brief history of the Railway Express Agency:

1. Early Express Services (19th Century): Before the formal establishment of the REA, various express companies handled the transportation of goods and packages via railroads. These services were crucial for businesses and individuals to ship items across the country.
2. Formation of REA (1917): In 1917, during World War I, the United States government took control of the nation's railroads. This led to the consolidation of various express services into a single entity, creating the Railway Express Agency on July 1, 1917. The government sought to streamline and improve the efficiency of express transportation during the wartime period.
3. Post-War Expansion: After World War I, the Railway Express Agency continued to grow and expand its services. It became a vital part of the transportation and logistics infrastructure, handling shipments of goods ranging from small packages to large freight.
4. Challenges and Changes: The REA faced various challenges over the years, including competition from other modes of transportation, such as trucks and airplanes. Changes in the overall transportation industry and the decline of passenger rail service also affected the express agency.
5. 1960s and 1970s: During the 1960s and 1970s, the Railway Express Agency encountered financial difficulties. The rise of interstate highways and the trucking industry led to a decline in rail transport for express shipments. Additionally, changes in regulations and increased competition further strained the company.
6. Decline and Dissolution: In 1975, the Railway Express Agency filed for bankruptcy and ceased operations. The company's decline was attributed to a combination of factors, including increased competition, changing transportation dynamics, and financial challenges.
7. Legacy: Although the Railway Express Agency no longer exists, its legacy is evident in the history of express transportation in the United States. The rise of modern courier and package delivery services can trace some of their roots back to the earlier express agencies like the REA.