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The term originally referred to a network of railway lines operated by nationalized companies under the control of the Railway Institute. Later, the Railway Ministry and Ministry of Transportation and Communications took over control of JNR. During World War II, many JNR lines were dismantled to supply steel for the war effort.
In 1947, JNR was reorganized into a state-owned company by a directive of the U.S. General HQ in Tokyo. The new JNR 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 ¥25 trillion ($70 billion). That year, the network was privatized by an act of the Diet of Japan, and divided into several companies collectively called the Japan Railway (JR) Group. Contemporary offspring of JNR include the East Japan Railway Company, West Japan Railway Company, and Central Japan Railway Company.