Federal Highway Act Of 1921: A Case Study

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The Federal Highway Act of 1921 brought many rules to the transportation industry. This result would be the ground work for future rules and regulations that will be brought up over the years. The act has several important parts to it that help support the overall foundation of the nations roads. In addition, the Highway Act impacted the logistics and transportation industry heavily. With the introduction of the Federal Highway Act in 1921 resulted in several regulations being implemented into the nation. This program mandated that the funds be concentrated on roads that were interstate in character and expedited the completion of the highway system (2013). This was a successful program as the national funding was increased to $75 million annually. With this also came a way of raising more money for the whole project. According to the Federal Highway Administration, the first President to sight the Federal gas tax into law was President Hoover (2013.). The regulation has several aspects to it and …show more content…

One of the positive ways was due to the fact that the roads became easier to pass and resulted in goods getting transferred faster and easier. This can be seen in the agricultural industry very quickly. Prior to the construction of roads the only way to get perishable goods from one spot to another quickly and effectively was the railroad system. This resulted in the cost of the goods being higher due to cost the railroad company charged the farmers. The negative to this whole situation is that the industry would be taxed on several aspects as well. This would be in not only the amount of weight they carried, but also the fuel they had to buy to move the goods. Companies could overcome this by charging more and putting more material into each load. I think the regulation was a very important aspect to the development of our

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