Rusty Driver
Posts: 195
Joined: Mon Sep 04, 2017 6:22 pm
1948 KB5 Railway Express
On June 1917 a Subcommittee on Express Transportation, part of a Special Committee on National Defense, was formed for the purpose of coordinating the work of the express companies with the efforts of the railroads in meeting the nationwide transportation problems confronting the Untied States and its involvement in the war. The subcommittee was made up of four members, each a vice president of the then Adams, American, Southern, and Wells Fargo Express Companies.
The Adams Express Co. was established in 1839. The American Express Co. was established in 1850. The Southern Express Co. was established in 1861. The Wells Fargo Express Co. was established in 1852. The express companies carried mail, packages, and offered banking service such as transporting money, payrolls, and gold. Most began through the services of the stagecoach and horse, but this later branched out into railroad services and later airline services.
The four member committee created a private corporation by consolidating the the four principal express companies mentioned above. This new corporation was called The American Railway Express Company (ARE) headed by Chairman D. S. Elliot who was the vice president of the American Express Co. After the President assumed Federal control of the railroads on December 17, 1917, the subcommittee ceased to function as a part of the Special Committee on National Defense.
On May 28, 1918, an agreement between the Director General of Railroads and the representatives of the four companies entered into a contract with the government to conduct the express business on all railroad lines that were under Fedeal control and that the Amercian Railways Express Co. would be the sole agent of the Government in conducting such business. The contract did not come into force until July 1, 1918. This gave the new company time to consolidate all the equipment for common use and set up a uniform accounting system. George C. Taylor was named the president of the company.
On July 10, 1918, the Express and Mail Section, Division of Traffic of the United States Railroad Administration was created. The function of this section was to represent the United States Railroad Administration in matters relating to the contract between the Director General of Railroads and ARE and to represent the United States Railroad Administration in matters involving questions over payment between individual railroads carrying the mail and the Post Office Department.
Questions involving rates, labor, and other issues began to arise within the business of the American Railways Express Company. To address and eliminate any problems, the President issued a proclamation on November 16, 1918, taking over the American Railways Express Co. and its business operations and placing them under Federal control. The company and its operations were now assigned directly to William McAdoo, Director General of the Railroads.
The American Railways Express Company was released from Federal control and returned to private control in March 1920. It was decided to keep the company intact as a whole rather then break it apart making it a private corporation. The company colors of dark green and red were adopted in 1921.
The growth of the post office, railroads, and airlines in the 1920's offered express services which were making it difficult for a private corporation to show profitability. In December of 1928, the Interstate Commerce Commission which governed the railroads suggested that they begin to operate their own express services.
In early 1929, 69 railroads came together to organize a new company known as the Railway Express Agency (REA). On March 1, 1929, REA purchased ARE. The new company was formed as the sole agency for rail express services and was based on the sales of stocks issued to any railroad that wanted a stake in the new company. The investment railroad had to purchase a minimum of 1,000 shares in REA to obtain a contract for the express services, with the first contract being issued in February 1929. The railroads provided all shipping and terminal space and had to subsidized the business. Any financial losses had to be absorbed by the railroads. In all, 86 Class I railroads bought a controlling interest in REA over its existence.
With the financial investments of the railroads, REA expanded services across the nation. New trucks were purchased and more employees were hired. Almost any town or city with a train depot had an REA office. Over the years as railroad freight declined and competition from the US Post Office, UPS, and Fed-Ex increased, REA began to show financial distress and large losses. By 1975 the company filed for bankruptcy with the end of the line coming in 1979.
The Railway Express Agency used the York-Hoover Body Company in York, Pennsylvania, to convert truck chassis for use with a commercial box body. The company was a well known commercial body builder for both cars and trucks. Some of the truck chassis used by REA were Ford, Chevrolet, Studebaker, and International. The box was of a basic design and custom fitted to a truck cab and chassis. The box was grafted to just behind the truck manufacturer's firewall and cowling section using the trucks dashboard, steering column, and wheel. Obvious differences in the box bodies over the years can be seen in the side door windows and windshield arrangement.
The truck seen here is a 1948 International KB5 cab/chassis, originally painted red at the factory, and then fitted with the York-Hoover commercial box body and painted in the REA colors. This Railway Express Agency truck was based out of Roanoke, VA. The truck when purchased showed 41,000 miles on the odometer and was in solid, but worn and neglected condition. Frame VIN B5-118429