Based on the ideas of
Update: Changed whole thing
Update: Changed function of ownership.
Update: Added Erie and Lackawanna to NS region
UPDATE: added PRR and Reading to NS region, removed Canadian properties.
In 1943 the whole common carrier railroad infrastructure of the United States of America needed to be secure and working in the Second World War. So a man named Edward Durand came to the White House with his solution, which was based on how railroads in his native France worked.
The system was modeled off the French SNCF which was federally run without the dissent of state governments and was divided into different regions to decentralize management into different regions.
This was modified to make it more capitalistic. For example, an individual railroad in a region was run by a buisiness man. Who was controlled by the private leader of that region in a matter similar to a trust. Then government funding was split among the regions. Then finally among the owners of the railroads.
Each of the railroads were grouped into regions, depending on where they served and who was deemed fit to operate them.The Chairman was a government appointed man who would lead the region of the network. Then, he was followed by some business men who ran the railroads in each region, handling issues like labor unions and traffic, so on and so on.
With the approval of Franklin D Roosevelt and the Supreme Court. Headquartered in Chicago. After the war despite being a political success. New Transportation subsidies for public roads, suburban real estate developments, and airport expansions took their toll on the departments non tax revenues, but luckily during the the late 40's and 1950's, the railroad was not auctioned back to the 100% private sector. Instead, they were run by "Enterprises" which ran various railroads with govt. funding. So there where no fears of the railroad's dismissal, but the Interstate Highway act of 1956 later damaged alot of the passenger trains of the country for several dark years of stagnation and neglect.
Luckily halfway around the world In 1964, with the introduction of the worlds first bullet train taking passengers from Osaka to Tokyo in response to 1964 Summer Olympics in that selected city. A new bill was written to congress by the Northwest Region of the network, on the proposal of building the first bullet train line in the country running from Washington DC to Boston. A year later, LBJ accepted the bill and by the Summer of the 1970 the project was completed to show the America public that the railroads where just as important to the American identity as the individual automobile.
Despite the use of diesels on high speed trains, steam locomotives continue to be used on non high speed passenger trains, and freight trains. This was due to easy labor (an advantage railroads took of the situation of immigrants fleeing from unrested places like the Middle East and Latin America.) and the fact the US has far more coal than oil. This success lead to the innovation of many other railroad routes and regions and by the 1980's, the passenger division was fully back to 40’s splendor.
The rise of the gas prices during the 1970's oil embargoes were a major help to the passenger renaissance as well, and the with the 1977 proposal of reducing the number of international airports and interstate Freeway Roads to the square mileage of the 1940 and 1950 census files was accepted by Jimmy Carter's energy vision and with the help of the government spending cuts of Ronald Reagan's cabinet. Their was a boost of rail traffic during the late Cold War years that by 1990, our country was on par with the countries of Western Europe in terms of quality public transport. The final boost was during the 1990's in the state of California with the remodeling of the former Southern Pacific's Coastal Daylight line for a high speed electric route as a alternative for Los Angeles and Bay Area commuters to take from the overcrowded highways of their selective urban and suburban commutes.
In the 1990's the railroads sought to take advantage of the autorack and the amount of people who preferred automobiles to trains. Essentially the Auto Train had passengers on the train while their car was inside autoracks situated behind the train. This was tested by the Seaboard and the RF&P over their rails betwen Lorton, VA, and Sanford, FL. Operating without stops between the two cities. Eventually, this became a service of all railroads.
Chessie- Seaboard Enterprises
Pacific Central Enterprises
Norfolk Southern Enterprises