Port Authority of New York and New Jersey - History

History

In the early years of the 20th century, there were disputes between the states of New Jersey and New York, over rail freights and boundaries. At the time, rail lines terminated on the New Jersey side of the harbor, while ocean shipping was centered on Manhattan and Brooklyn. Freight had to be shipped across the Hudson River in barges. In 1916, New Jersey launched a lawsuit against New York over issues of rail freight, with the Interstate Commerce Commission (ICC) issuing an order that the two states work together, subordinating their own interests to the public interest. The Harbor Development Commission, a joint advisory board set-up in 1917, recommended that a bi-state authority be established to oversee efficient economic development of the port district. The Port of New York Authority was established on April 30, 1921, through an interstate compact between the states of New Jersey and New York. This was the first such agency in the United States, created under a provision in the Constitution of the United States permitting interstate compacts. The idea for the Port Authority was conceived during the Progressive Era, which aimed at the reduction of political corruption and at increasing the efficiency of government. With the Port Authority at a distance from political pressures, it was able to carry longer-term infrastructure projects irrespective of the election cycles and in a more efficient manner. Throughout its history, there have been concerns about democratic accountability, or lack thereof at the Port Authority. The Port District is irregularly shaped but comprises a 1,500-square-mile (3,900 km2) area roughly within a 25-mile (40 km) radius of the Statue of Liberty.