Washington Terminal Company

The Washington Terminal Company is a railroad infrastructure and terminal-support corporation established in Washington, D.C., in 1901. It was created by the Baltimore and Ohio Railroad and the Philadelphia, Baltimore and Washington Railroad, the latter controlled by the Pennsylvania Railroad, to consolidate the terminal functions required by the railroads serving the capital. Its principal asset and operating focus became Washington Union Station and the associated approaches, platforms, tracks, and switching facilities. Union Station opened in 1907 as a major passenger gateway for Washington. The terminal company owned and operated the station during the period when several competing railroads used it, including the Baltimore and Ohio, Pennsylvania, Chesapeake and Ohio, Richmond, Fredericksburg and Potomac, Southern, Atlantic Coast Line, and Seaboard Air Line railroads. Rather than functioning primarily as a consumer-facing railway brand, Washington Terminal Company provided the shared physical plant and operating services that allowed passenger trains from different railroad systems to enter, leave, reverse, switch, and pass through the Washington terminal district. Its historical railroad property included approximately five miles of track in the Washington area. The company also became significant in American transportation law. In 1914, it was the defendant in Richards v. Washington Terminal Company, a United States Supreme Court case associated with disputes over railroad-terminal operations and property rights. The case is one of the most notable legal references connected with the company and reflects the broader public importance of railroad infrastructure in a dense capital-city environment. A major institutional change occurred in 1981, when Amtrak assumed the terminal company's operations. Washington Terminal Company nevertheless remained a legally separate corporation rather than being dissolved or fully merged into Amtrak. Amtrak now holds approximately 99.7 percent of the company, while the small residual interest is held by Amtrak employees. The company's officers are Amtrak employees, and most of its directors are also associated with Amtrak. Through the terminal company, Amtrak shares ownership interests in Union Station facilities with the United States Department of Transportation. The ownership is divided by asset: the Department of Transportation owns the station building and surrounding parking areas, while Washington Terminal Company owns the platforms and tracks. This structure leaves the terminal company as an infrastructure owner and legal operating entity even though the visible passenger services at the station are associated with Amtrak and other rail operators. The company's separate legal status has practical regulatory consequences. Unlike Amtrak, Washington Terminal Company is not exempt from the Interstate Commerce Act. That distinction became relevant when Virginia Railway Express objected to an attempt by Amtrak to remove it from Union Station after VRE declined to automatically rehire Amtrak as its operating contractor. VRE indicated that it could seek relief from the Surface Transportation Board to enforce access rights. Amtrak ultimately withdrew from the threatened exclusion, preserving VRE's access. Washington Terminal Company has also had a distinctive equipment history. Among its former locomotives was a Romanian FAUR road switcher built in 1974. Originally numbered LDH125-107 and nicknamed “Quarterhorse,” the diesel-hydraulic locomotive had been tested on the United States railroad network before being rejected by American railroads because of limited interest in diesel-hydraulic traction. Washington Terminal Company acquired and operated the locomotive until the late 1980s, after which it was scrapped. Today, Washington Terminal Company is best understood as a specialized terminal and railroad-property entity within the Amtrak structure. Its importance lies less in an inde…

Washington Terminal Company was formed in 1901 by two major railroad interests serving Washington, D.C.: the Baltimore and Ohio Railroad and the Philadelphia, Baltimore and Washington Railroad, which was controlled by the Pennsylvania Railroad. The purpose of the new company was to create a common terminal organization for the railroads entering the capital. By centralizing terminal ownership, switching, and passenger-train support, the company reduced the need for competing railroads to maintain separate facilities in the same urban district. The company's central undertaking was Washington Union Station, which opened in 1907. Washington Terminal Company owned and operated the station and approximately five miles of associated track in the Washington area. Its facilities supported passenger trains operated by a broad group of railroads, including the Baltimore and Ohio, Pennsylvania, Chesapeake and Ohio, Richmond, Fredericksburg and Potomac, Southern, Atlantic Coast Line, and Seaboard Air Line. The company therefore functioned as a shared railroad utility: it did not represent one principal long-distance passenger system, but instead supplied the physical plant and terminal services needed by several railroads. The company's infrastructure role also placed it in important legal disputes. In 1914, it was the defendant in Richards v. Washington Terminal Company, a United States Supreme Court case. The litigation contributed to the company's historical significance beyond ordinary railroad operations and illustrates how terminal railroads could become involved in questions of property, access, and public transportation infrastructure. The growth of federally supported intercity passenger rail changed the company's institutional position. In 1981, Amtrak took over Washington Terminal Company's operations. The transfer did not eliminate the company as a separate corporation. Instead, Washington Terminal Company became closely integrated with Amtrak while retaining its own legal identity and ownership interests in Union Station infrastructure. Amtrak owns approximately 99.7 percent of the company, with the remaining interest held by Amtrak employees. The company's officers are Amtrak employees, and most of its directors are also Amtrak-associated personnel. The ownership arrangement at Union Station is divided among entities and asset classes. Through Washington Terminal Company, Amtrak shares ownership of the station complex with the United States Department of Transportation. The Department of Transportation owns the station building and the surrounding parking lots, while Washington Terminal Company owns the platforms and tracks. This division helps explain why a relatively obscure corporation remains relevant to the continuing operation and governance of one of the United States' principal passenger rail terminals. Washington Terminal Company's separate legal status has also affected questions of rail access. Unlike Amtrak, it is not exempt from the Interstate Commerce Act. That difference became material in a dispute involving Virginia Railway Express. After VRE indicated that it would not automatically retain Amtrak as its operating contractor, Amtrak attempted to remove VRE from Union Station. VRE responded by threatening to ask the Surface Transportation Board to enforce its access rights. Amtrak abandoned the proposed exclusion, leaving VRE's access intact. The company's former locomotive fleet included an unusual Romanian-built FAUR road switcher. Built in 1974 for testing on the American railroad network, the locomotive was originally designated LDH125-107 and became known as “Quarterhorse.” American railroads showed little interest in diesel-hydraulic propulsion, but Washington Terminal Company later acquired the unit and operated it into the late 1980s. It was eventually scrapped. Washington Terminal Company remains active as a legally distinct railroad terminal entity associated with Amtrak. Its contemporary significance comes from ownership and support of the tracks and platforms at Union Station, rather than from a separately marketed passenger timetable. The company represents the continuing institutional role of terminal railroads: managing shared infrastructure and access for different passenger operators in a major metropolitan transportation hub.

1. 1981Amtrak takes over operations

   Amtrak assumed the company's operations while leaving Washington Terminal Company as a separate legal entity.

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2. 1914Richards v. Washington Terminal Company

   The company was the defendant in a landmark United States Supreme Court case concerning issues connected with railroad-terminal operations and property rights.

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3. 1907Washington Union Station opens

   Union Station opened as the company's principal terminal facility, serving passenger railroads entering and passing through Washington.

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4. 1901Company established

   The Baltimore and Ohio Railroad and the Pennsylvania-controlled Philadelphia, Baltimore and Washington Railroad formed Washington Terminal Company to coordinate railroad terminal facilities in Washington, D.C.

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5. Amtrak becomes nearly complete owner

   Amtrak came to hold approximately 99.7 percent of Washington Terminal Company, with the balance held by Amtrak employees.

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A specialized railroad infrastructure owner and terminal-support company rather than a consumer-facing passenger rail operator. Its role is to maintain and support shared facilities used by multiple passenger rail services at Washington Union Station.

• Union Station terminal infrastructureRail terminal infrastructure1907

  Washington Terminal Company's principal physical role is associated with Washington Union Station. The company owns the station's platforms and tracks, which support passenger trains using the terminal and trains passing through the Washington area. The station building and surrounding parking areas are owned by the United States Department of Transportation, making the terminal a divided-ownership transportation complex.

• Railroad switching and terminal supportRailroad operating service1901

  Historically, the company provided switching and related terminal services for passenger trains operated by multiple railroads. Its function was to coordinate access to shared tracks, platforms, and terminal approaches rather than to sell a distinct passenger service to the public.

• 1981Transfer of operations to AmtrakStrategy

  Washington Terminal Company had historically operated the shared terminal facilities used by several railroads in Washington, D.C. The company was subsequently placed within Amtrak's operating structure.

  What changed. Amtrak took over the company's operations while preserving Washington Terminal Company as a separate legal corporation.

  Aftermath. The company became a nearly wholly owned Amtrak subsidiary and continued to hold specified interests in Union Station's platforms and tracks.

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• Amtrak withdraws proposed exclusion of Virginia Railway ExpressOther

  A dispute arose after Virginia Railway Express declined to automatically rehire Amtrak as its operating contractor. Amtrak then attempted to oust VRE from Union Station.

  What changed. VRE threatened to seek an Interstate Commerce Act-related access remedy before the Surface Transportation Board. Amtrak backed down from the proposed exclusion.

  Aftermath. VRE retained access to Union Station, highlighting the regulatory significance of Washington Terminal Company's separate legal status.

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• 1981Amtrak assumes Washington Terminal Company operations

  Amtrak took over the company's operations, while Washington Terminal Company remained a separate legal entity and continued to hold specified terminal infrastructure interests.

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• 1907Union Station opens under Washington Terminal Company operation

  Washington Union Station opened as the central passenger terminal supported and operated by Washington Terminal Company for multiple railroads serving the capital.

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• 1901Washington Terminal Company established to serve Washington railroads

  The Baltimore and Ohio Railroad and the Pennsylvania-controlled Philadelphia, Baltimore and Washington Railroad created Washington Terminal Company to provide shared terminal and switching functions for railroads using Washington, D.C.

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• Access dispute involving Virginia Railway Express

  Virginia Railway Express threatened to seek Surface Transportation Board enforcement of its access rights after Amtrak attempted to exclude it from Union Station following a disagreement over whether Amtrak would be retained as VRE's operating contractor. Amtrak subsequently backed down.

  RegulationLawsuit
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1. Washington Terminal Company