Rails were in use nonstop. But despite greater traffic, they struggled for cash flow. Two separate events were squeezing the rail companies. The rate rules that the ICC had been imposing since the passage of the Hepburn Act had indeed kept rates that railroads might charge lower. But companies were finding their costs were higher, as well as their taxes. Meanwhile, workers were demanding pay increases to keep pace with their own costs. The railroads could not keep up with the demands of war. To serve the war effort, Wilson was contemplating nationalizing the railroads.
