Congress to hear consolidation plan for five railroads

The consolidation of many as five of the nation's railroads into “one strong Midwestern road” will be proposed to Congress in hearings scheduled today by the House transportation subcommittee.

John W. Ingram, president of the Chicago, Rock Island and Pacific Railroad, who said he would propose the plan, disclosed yesterday that he would seek to link the Rock Island with some sections of the Chicago, Milwaukee. St. Paul and Pacific Railroad and the Iowa and South Dakota lines of the Illinois Central Gulf Railroad.

 

As part of the plan—known as FarmRail — both the Missouri‐Kansas‐Texas Railroad and the Kansas City Southern Railway might also become part of the consolidation, he said. He said that “FarmRail will not be a Midwestern Conrail"—a remark apparently meant to convey that the proposed road would not look to the Government for support. Nevertheless, he said that the plan might be moved along more quickly through Government loans authorized under the Railroad Revitalization and Regulatory Reform Act of 1976.

 

Mr. Ingram did not mention any specific loan to be sought, although $1.6 billion in Federally guaranteed funds have been earmarked for that purpose under the act.

   

The Rock Island executive, outlining the plan in broad strokes, said FarmRail would not necessarily be a corporation on its own but added that it “eventually could be.”  It will not be an operating railroad,” he added, “it will be a consortium of railroads, operated in their joint best interest.”

 

Moreover, he maintained, no monopoly would he created because of competition from the Chicago and North Western Railway between Chicago and Omaha. He further noted that no investment would be‐required to set up the system.

 

Those taking part would use joint terminals, rail yards and equipment and share each other's tracks. The Rock Island, for example, late last year completed arrangements with the Milwaukee Road to share the same line between Kansas City, Mo. and Davenport, Iowa, a 243 mile stretch, that will cut duplicate trackage, reduce costs and eliminate safety hazards.

 

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NY Times 1/5/1978

The Pacific Short Line

Chicago - August 26

The Pacific Short Line will be offered for sale at public auction next Tuesday under foreclosure proceedings by order of the United States Circuit Court.  It is expected that there will be a sharp contest for the possession of the property, as several companies are known to have had a covetous eye on it for some time and will make the most of this opportunity to secure it.  Among the bidders, it is understood, will be the Chicago, Milwaukee & St. Paul, Chicago & North Western, and the Illinois Central Company, besides syndicates of the original bond holders.

In railroad circles much interest has been manifested in the Pacific Short Line project from the first.  It was originally an Illinois Central scheme, but was abandoned by that company and afterward taken up by the Wyoming Improvement Company.  The intention was to build a line from Sioux City to Ogden, paralleling the Union Pacific and shortening the distance by several hundred miles from the Missouri River to the Pacific coast.  Sioux City men added $1,000,000 to the amount that was put into the enterprise be Eastern capitalists.  The whole line was surveyed and laid out, three different companies were incorporated, and 130 miles of the road, between Sioux City and O'Neill, Neb, were constructed and put into operation.

The enterprise looked promising enough, until the financial panic of last Fall, after which the outlook was changed.  Jay Gould had gobbled the Union Pacific and was understood to be hand in glove with Huntington, who controls the Central Pacific.  The latter road, which is the only outlet from Ogden to the Pacific coast, was in hostile hands and the Pacific Short Line people decided that it would be folly to complete their line under such circumstances.  The property was allowed to go into the hands of a receiver and is now to be sold by order of the court.  The Illinois Central is said to be anxious to get possession of the road and thereby gain access to the Black Hills territory.

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NY Times 8/27/1891

Railroads map merger

3 Midwestern Carriers ask for I.C.C. Permission

Washington, May 10 (UPI) - Three Midwestern railroads controlled by the Canadian Pacific Railway have formally applied to the Interstate Commerce Commission for permission to merge, it was announced today.

The three carriers, which have been studying a merger for the last year, are the Minneapolis, St. Paul & Sault Ste. Marie (Soo Line), the Wisconsin Central and the Duluth, South Shore and Atlantic.  The merged company would be known as the Soo Line Railroad.

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NY Times  5/11/1960

Illinois Central - stance on the C&NW-MILW merger

Stockholders of the Illinois Central were also contacted by their management yesterday.  In an eight-page pamphlet, the carrier outlined its objection to a planned merger of the Chicago & North Western and Chicago, Milwaukee, St. Paul & Pacific Railroads.

The Illinois Central said it would not oppose the merger if it was given the opportunity to purchase a 70-mile portion of the Milwaukee's tracks and right-of-way, "or alternatively to use" the line, which stretches from Lyle to Northfield, Minn.  This trackage would create a new primary rail route between Chicago and Minneapolis-St. Paul.

The Illinois Central, since 1960, has reached the Twin Cities from Chicago via the so-called Albert Lea route, whereby Illinois Central trains operate directly to Albert Lea, Minn., and jointly with the Chicago & North Western from Albert lea to the Twin Cities.

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NY Times 12/6/1966

Two Chicago roads interested in Gulf, Mobile & Ohio Line

Two Chicago railroads expressed interest yesterday in the Gulf, Mobile & Ohio Railroad, one through a study of a possible merger and the other by substantial stock purchases.

The Illinois Central and the GM&O announced jointly that they had opened a study to determine the feasibility of a merger of the two lines.

The Chicago & North Western Railway disclosed that it had acquired 135, 128 shares, or about 13.3% of the outstanding common stock of the G.M.&O because of its "high regard for the management of the G.M.&O. and  the territory it seves so well."

The two developments came as a surprise to many rail observers.

Operations of the Illinois Central, with 6,466, miles of track, and the G.M.&O. , with 2,747 miles of track, largely parallel to each other from Chicago to the Gulf of Mexico.  The G.M.&O. has it headquarters in Mobile, ALA.  The Illinois Central also has an east-west line from Chicago to Nebraska, Iowa, and South Dakota.  The Chicago & North Western operates 10,729 miles of track out of Chicago to Wisconsin, Iowa, Minnesota, South Dakota and Nebraska.

No Seats Sought- A North Western spokesman said the line was "not now" seeking representation on the G.M.&O. board.  He declined to say whether the road planned to acquire more shares or to seek outright control.

A C.&N.W. consolidation with the G.M&O. would be an end-to-end merger, whereas an Illinois Central merger with the G.M.&O. could eliminate duplicate facilities.

Many rail observers were surprised by the brief announcement concerning the Illinois Central's interest in the G.M.&O. because the Illinois Central already has a merger study pending with the Missouri Pacific Railroad.

The Illinois Central and the Missouri Pacific are also awaiting an Interstate Commerce Commission ruling on their applications to acquire control of the Chicago & Eastern Illinois Railroad.

The Chicago & North Western has had merger negotiations with the Chicago, Milwaukee, St. Paul and Pacific Railroad, although those talks reached an impasse early in 1961 because of a failure to agree on terms of a consolidation.

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NY Times 7/12/1962

IC northern expansion

A New Line. —lt is currently reported that the Illinois Central and Wisconsin Central Railroad Companies have coalesced to carry out a scheme which is of considerable importance to marine men.
It is to establish a line of steamers between Chicago, Green Bay and Ogdensburg. It is settled that the line will becomposed of the propellers N. L. Frost, W. J. Averill, and W. A. Haskell, which were operated by a New York railroad company last season. They are the largest and finest propellers ever built for the Welland Canal trade, but the New York Company could not bold them because there is a law in New York which prohibits railroad companies owning steam boats. Last winter the boats were sold under the hammer, and were bid on by the Detroit Dry Dock Company, and  ever since negotiations have been going on between this company and the two railroad companies mentioned for their purchase. Recently, the Wisconsin Central Railroad has purchased or has secured full control of the Green Bay, Winona and St. Paul Railway; they also have a through line from Winona to St. Paul. It is their object to make Green Bay a great distributing point for Northwestern wheat and corn, and to do this they want the steamboats mentioned.

---- The Manitowoc pilot.  April 02, 1885

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—Lake Superior News: The air is thick with rumors about the new railroad connections at Duluth,
in which the Illinois Central, the Wisconsin Central, and the Duluth and Winnipeg railroads figure
extensively. The fact is “things are a working,” but those who really know how matters stand are mum, because it is not time yet to disclose their plans. We could give any number of rumors, but facts are what people want.

----The Superior times, September 21, 1878

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ILLINOIS CENTRAL TO EXTEND
Manitowoc May be Included in New Road From Madison.
It is reported that the Illinois Central R. R. is planning to extend its line from Madison to Green Bay via the Fox river valley. In this case it is probable that Manitowoc may be included as the officials of that road visited here when the project was first entered upon about two years ago. The project is being financed by bankers of Cleveland and it is estimated that the line will cost $3,000,000.

----- The Manitowoc pilot.  October 15, 1903

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Illinois Central to Enter Manitowoc.
There is a probability that Manitowoc will have another railroad added to its present shipping facilities. Indications point to a desire on the part of the Illinois Central Railway Company to enter
there and establish a terminal. William.1. Bowles, freight and traffic manager of the road, has been in the city looking over the advantages afforded by the city. Mr. Bowles stated that he was favorably impressed with the facilities offered and that the matter would be thus reported by him to the Illinois Central officials.

-----Vernon County Censor.  April 16, 1902