Railway Express Agency

The Railway Express Agency (REA) was a national monopoly set up by the United States federal government in 1917. Rail express services provided small package and parcel transportation using the extant railroad infrastructure much as UPS functions today using the road system. The United States government was concerned about the rapid, safe movement of parcels, money, and goods during World War I and REA was its solution to this problem. REA ceased operations in 1975, when its business model ceased to be viable.

The first parcel express agency in the United States is generally considered to have been started by William Frederick Harnden (1812-1845), 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 parcel express pioneers include Henry B. Plant, who formed Southern Express Company, Alvin Adams who founded Adams Express Company, and John Warren Butterfield. Express delivery in the early 19th century was virtually all done via horse, either via stagecoach or by riders.

The express business flourished in the latter half of the 19th century, and by 1900 there were four principal parcel express companies, all of which included the rapidly advancing railways as one of their means of transport: 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.

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