Operated such railroads, coastwise steamship lines, inland waterways, and telephone and telegraph companies as were seized by the government in the interest of national defense. Entered into compensatory agreements with seized carriers pursuant to the Federal Control Act, March 21, 1918.

Railroads and other seized carriers were returned to private control on March 1, 1920, under terms of the Transportation Act, February 28, 1920. USRA functions thereafter concerned with liquidation and final settlement of accounts.