Railway Express Agency - Early History

Early History

The first railway express agency in the United States is generally considered to have been started by William Harriden, who in 1839 began regular trips between New York City and Boston, Massachusetts as a courier transporting small parcels, currency and other valuables. William G. Fargo, a New York Central freight clerk at Auburn, N.Y., and Henry Wells, a leather worker at Batavia, N.Y., organized Wells Fargo & Co. in 1853. Other railway express pioneers include Henry B. Plant, who formed Southern Express Company, Alvin Adams who founded Adams Express Company, and John Warren Butterfield.

The express business flourished in the latter half of the 19th century, and by 1900 there were four principal railway express companies: Adams Express Company, Southern Express Company, American Express Company, and Wells Fargo. In 1913 the U.S. Post Office introduced its Parcel Post service, which offered major competition for the express companies. Despite this, private railway express business increased steadily through the end of World War I.

During World War I, the United States Railway Administration (USRA) took over the nation's railroads. Under the USRA, the four major and three minor express companies were consolidated as American Railway Express, Inc., save the portion of Southern Express that operated over the Southern Railway and the Mobile & Ohio.

In March 1929, the assets and operations of American Railway Express Inc. were transferred to Railway Express Agency (REA). REA was owned by 86 railroads in proportion to the express traffic on their lines - no one railroad or group of railroads had control of the agency. In response to customer demand, REA added a Chicago, Illinois-based refrigerator car line. In 1927, REA began an Air Express Division. In 1938, the remainder of Southern Express also joined the consolidated REA.