"From what I remember from the history of this, a particularly nasty/deadly accident on the PRR (can't recall exactly where, but I think it was in Maryland or Delaware) was the reason this ruling was made by the ICC and implemented in 1922. Note that this was long before diesel-electric or electric power on the PRR."
I believe that the accident in question was the one that occurred in 1906 in Washington DC less than 1/4 mile from the Maryland & District boarder on the B&O.
"Deadly 1906 Washington DC Train Wreck Near Fort Totten"
http://brooklandavenue.com/blog/?p=845
Which occurred within yards of the accident occurring on the WMATA Red Line at Fort Totten on June 22 2009
http://en.wikipedia.org/wiki/Washington_Metro
The Red Line runs alongside CSX tracks that are also used by Amtrak (Chicago Limited) & MARC (Brunswick) that at one time was B&O right of way.
The cause of the Fort Totten wreck in 2009, was as I predicted within hours of the accident, an Impedance Bond (Z Bond) defect.
I thought that either the stopped train had stopped incorrectly positioned and was straddling it, hiding the signal, or that the Z-Bond failed (as they frequently do).
Anyway, the 1906 accident began the discussion that did not bear fruit until 1922 after there had been many more wrecks, likely including some nasty ones in the Northeast Corridor with PRR. The 1922 ICC legislation also mandated the first use of the Diesel Electrics. The rule required that Coal Fired Steam not be used within large metropolitan areas as a yard engine due to its heavy polluting coal dust. Many RRs used Tank Engines, but most used Diesel Electrics developed by GE, Westinghouse and Baldwin (jointly) as well as others.