Explores the impact of steam-powered locomotives and major advances in rail technology in transforming the nation in the nineteenth century. Once the power of the railroads prompted government intervention, regulation proved damaging to the industry. Railroads were particularly disadvantaged during the period after World War II, when they faced subsidized competition from highway and air transportation. Argues that the current era, starting with the founding of Amtrak in 1971 and the passage of deregulation legislation in1980, is one of renewed promise for rail transportation. In the new, more competitive environment, American freight and passenger rail have both prospered, pointing to the