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Japanese Nation! al Railways
The term Kokuy? Tetsud? "state-owned railway" originally referred to a network of railway lines operated by nationalized companies under the control of the Railway Institute following the nationalization in 1906 and 1907. Later, the Ministry of Railways and the Ministry of Transportation and Communications took over control of the network. The ministries used the name Japanese Government Railways (JGR) to refer their network in English. During World War II, many JGR lines were dismantled to supply steel for the war effort.
In 1949, JGR was reorganized into a state-owned public corporation by a directive of the U.S. General HQ in Tokyo. The new corporation enjoyed many successes, including the 1964 inauguration of high-speed Shinkansen service. However, the network's rapid expansion also pulled it further and further into debt as it took out huge loans to fund new capital projects.
By 1987, JNR's debt was over ¥27 trillion ($280 ! billion at 2009 exchange rates) and the company was spending ¥! 147 for every ¥100 earned.[1] That year, the network was privatized by an act of the Diet of Japan, and divided into several companies collectively called the Japan Railways Group (JR Group). Contemporary offspring of JNR include the East Japan Railway Company, West Japan Railway Company, and Central Japan Railway Company.
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