Final answer:
Amtrak was created following the Rail Passenger Service Act as a response to decreased passenger rail travel, which had suffered due to the rise of the automobile. The government's involvement in railroad regulation dates back to the Interstate Commerce Act of 1887 and the Hepburn Act of 1906, paving the way for Amtrak's establishment to maintain national rail services.
Step-by-step explanation:
Amtrak was established shortly after the Rail Passenger Service Act was passed. This act was a pivotal point in the history of U.S. rail service, as it led to the creation of a government corporation known as the National Railroad Passenger Corporation, colloquially referred to as Amtrak. The institution of Amtrak was in direct response to the dramatic decline in passenger rail travel observed in the 1950s and 1960s, driven largely by the increasing popularity of the automobile.
Historically, government intervention in railroad operations dates back to the 19th century, with significant legislation such as the Interstate Commerce Act of 1887, which demanded standardization of fares and outlawed discriminatory practices against small farmers. The focus on fair competition and regulation of railroads continued with the Hepburn Act of 1906, which further expanded the power of the Interstate Commerce Commission (ICC) to set maximum railroad rates.
These earlier acts laid the groundwork for future government involvement in the railroad industry, culminating in the establishment of Amtrak. By consolidating the remaining passenger rail services, Amtrak aimed to maintain an essential network of passenger trains across the nation, even as profits diminished and the private sector retreated from these services.