The Chicago & Northwestern Railroad history

History

The Chicago and North Western Railway was chartered on June 7, 1859, five days after it purchased the assets of the bankrupt Chicago, St. Paul and Fond du Lac Railroad. On February 15, 1865, it merged with the Galena and Chicago Union Railroad which had been chartered on January 16, 1836. Since the Galena & Chicago Union started operating in December 1848, and the Fond du Lac railroad started in March 1855, the Galena and Chicago Union Railroad is considered to be the origin of the North Western railroad system. Other lines acquired and added to the network included the Chicago, St. Paul and Fond du Lac Railroad in 1859, the Winona and St. Peter Railroad in 1867, the Sioux City and Pacific Railroad in 1880, the Fremont, Elkhorn and Missouri Railroad in 1884, and the Milwaukee, Lake Shore and Western Railway in 1893. They also held extensive property in Michigan, particularly its Upper Peninsula, to the point where they were one of the largest property owners in the state.

Changing traffic patterns and competition with automobiles and trucking disrupted the railroad's profitability by mid-20th century. After nine years in bankruptcy, the C. & N. W. was reorganized in 1944. It had turned rapidly to diesel power, and established a huge diesel shop in Chicago. Its Proviso Freight Yard, located 12 miles (19 km) west of the city center in suburban Cook County, was constructed between 1926 and 1929 and remained the largest such in the world, with 224 miles of trackage and a capacity of more than 20,000 cars.

Potatoes from the west were a main crop loading of the C. & N. W., and its potato sheds in Chicago were the nation's largest. It also carried western sugar beets and huge amounts of corn and wheat. This road, like other lines depending strongly on transportation of crops, was adversely affected by government agricultural credit policies which sealed a lot of products on the farms where they were produced. Although it stood sixteenth in operating revenue in 1938, it was eighth in passenger revenue among American railroads. It served Chicago commuters; its 400 streamliners provided intercity transportation, and it provided an eastern link to bring the Union Pacific's passenger from Omaha, Nebraska and points west to Chicago.

The North Western had owned a majority of the stock of the Chicago, St. Paul, Minneapolis and Omaha Railway (Omaha Road) since 1882. On January 1, 1957, it leased the company, and merged it into the North Western in 1972. The Omaha Road's main line extended from an interchange with the North Western at Elroy, Wisconsin,  to the Twin Cities, south to Sioux City, Iowa, and then finally to Omaha, Nebraska.

The North Western acquired several important short railroads during its later years. It completed acquisition of the Litchfield and Madison Railway on January 1, 1958. The Litchfield and Madison railroad was a 44-mile (71 km) bridge road from East St. Louis to Litchfield, Illinois. On July 30, 1968, the North Western acquired two former interurbans — the 36-mile (58 km) Des Moines and Central Iowa Railway (DM&CI), and the 110-mile (180 km) Fort Dodge and Southern Railway (FDDM&S). The DM&CI gave access to the Firestone plant in Des Moines, Iowa and the FDDM&S provided access to gypsum mills in Fort Dodge, Iowa.

On November 1, 1960, the North Western acquired the rail properties of the 1,500-mile (2,400 km) Minneapolis and St. Louis Railway. In spite of its name, it ran only from Minneapolis, Minnesota, to Peoria, Illinois. This acquisition provided traffic and modern rolling stock, and eliminated competition.

On July 1, 1968, the 1,500 mi (2,400 km) Chicago Great Western Railway merged with the North Western. This railroad extended between Chicago and Oelwein, Iowa.  From there lines went to the Twin Cities, Omaha, Nebraska, and Kansas City, Missouri. A connection from Hayfield, Minnesota to Clarion, Iowa, provided a Twin Cities to Omaha main line. The Chicago Great Western duplicated the North Western's routes from Chicago to the Twin Cities and Omaha, but went the long way. This merger provided access to Kansas City and further eliminated competition. After abandoning a plan to merge with the Milwaukee Road in 1970, Benjamin W. Hieneman, who headed the CNW and parent Northwest Industries since 1956, arranged the sale of the railroad to its employees in 1972; they formed Northwest Industries to take over the CNW in 1968. The words "Employee Owned" were part of the company logo in the ensuing period. The railroad was renamed from Chicago and North Western Railway to Chicago and North Western Transportation Company. The railroad's reporting marks (CNW) remained the same.