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

Southern Pacific wins direct line to Chicago

October 03, 1990|By Stanley Ziemba.  (Chicago Tribune)

After trying for more than a century, the Southern Pacific railroad finally has been able to establish a direct track line from the West Coast into Chicago.
Southern Pacific Lines said Tuesday it has obtained the necessary authorization from the Interstate Commerce Commission to extend its service east from Kansas City to Chicago, enabling the firm to offer direct service for the first time between Chicago and California.

 

The Kansas City-based railroad company said it will be operating over trackage rights obtained from the Burlington Northern Railroad between Kansas City and Chicago and will be using its own trains and crews.
``We`ve wanted to get Southern Pacific trains into Chicago from the West Cost for over a century. Now we`re finally there, with a highly efficient service route,`` said Southern Pacific President Mike Mohan.
``Obtaining trackage rights on the 466-mile Burlington Northern route across Missouri and Illinois gives us a fast, competitive route from points in California to Chicago via Kansas City,`` he said.
Nearly 1,000 shippers and many state and local government agencies supported the Southern Pacific`s efforts to get ICC approval for the Kansas City to Chicago route, Mohan said.
Limited operations over the Burlington Northern`s tracks between Kansas City and Chicago began Friday, Mohan noted. He said operations will be increased over the next several weeks as crews are qualified and tariffs for the new route take effect.
Until now, Southern Pacific had been the only major Western railroad without direct access to Chicago, the nation`s transportation hub. And it wasn`t until recently that the railroad had access to the city from the Gulf Coast and the Southwest.
That access was achieved last November, when Southern Pacific`s parent company, Rio Grande Industries Inc., bought a 282-mile line between St. Louis and Chicago from the Chicago, Missouri & Western Railroad.
Mohan said the operating unit for the Southern Pacific on the new Kansas City to Chicago route will be its subsidiary, the SPCSL Corp., which already has operating rights in the Chicago area needed to support Southern Pacific`s new route.
In addition, Mohan noted that Southern Pacific has reached agreements with the Norfolk Southern Railroad for the use of a portion of the Burlington Northern`s track in Missouri that Norfolk Southern controls jointly with Burlington Northern.
Earlier this year, the Southern Pacific won ICC approval to acquire some rail lines between Chicago and Kansas City owned by the Soo Line Railroad Co. in an effort to establish a link for itself between the West Coast and Chicago. That plan, however, was dropped in favor of the joint trackage agreement with Burlington Northern, Mohan said.

Map of the Milwaukee & St. Louis Air Line

From an 1874 edition of the "Wisconsin Lumberman".  A high resolution image is available here.


Note that while it seems to follow the Alton from Varna to Washburn, it also includes a proposed portion from Washington, IL to Springfield, IL via Fremont, Delevan, & Middletown.  I am guessing here but perhaps St. Louis would be reached via trackage rights from Springfield?  I only say that due to the lack of online towns shown between St. Louis & Springfield.  With the numerous references to Varna in other places I would assume that the route shown includes using the Chicago & Alton between Varna and Washington, IL.

More Milwaukee & St. Louis Air Line tidbits

From the "Financier, Vol 4".  Not sure how Beloit fits into the route plan(?).

Milwaukee & St Louis Air Line

-A project for building a road from Milwaukee southwest to Varna IL to connect there with the Jacksonville division of the Chioago & Alton road is being discussed by Milwaukee people and others The estimated distances are given as follows:

From Milwaukee to .......
-state line 44
-Woodstock 55
-Sycamore 75
-Mendota 116(?)
-Peru 133
-Varna 156

The line in Wisconsin passes through Muskego Waterford Rochester Burlington Richmond and Beloit The following are names and addresses of those connected with the project Guido Pfister EH Ball WE Smith and EP Allis of Milwaukee CC Merrick of Chicago Charles Kellum Sycamore 111 JH Johnson Woodstock 111