The ULTIMATE Historical Guide To North American Railroads (200+ Railroads)

Alton

The Alton & Sangamon Railroad was chartered in 1847 to build a railroad connecting the agricultural area centered on Springfield, Ill., with Alton, on the east bank of the Mississippi River 20 miles north of St. Louis. The railroad opened in 1851. During the ensuing decade, it built a line north through Bloomington to Joliet and was renamed the St. Louis, Alton & Chicago Railroad. The Chicago & Alton Railroad was organized in 1861 to purchase the StLA&C. 

In 1864 the Chicago & Alton leased the Joliet & Chicago Railroad to gain access to Chicago. Timothy B. Blackstone, president of the Joliet & Chicago, became president of the C&A. In 1870 the C&A leased the Louisiana & Missouri River Railroad (Louisiana Mo. to the north bank of the Missouri River opposite Jefferson City) and in 1878 it leased the Kansas City, St. Louis & Chicago Railroad (Mexico, Mo.-Kansas City), creating the shortest Chicago-Kansas City route. (In 1888 the Santa Fe completed a Chicago-Kansas City route that was 32 miles shorter.)

By the end of the nineteenth century, the Chicago & Alton had attracted the notice of Gould, Rockefeller, and Harriman, each of whom could find a place in his rail empire for the road. Harriman formed a syndicate of railroad finances who were able to meet Blackstone's terms (basically $175 per $100 share of common stock and $200 per share preferred; Blackstone controlled one-third of the stock), and in 1899 the syndicate purchased 95 percent of the stock. The Chicago & Alton then issued bonds, which the stockholders bought cheap and resold dear to the public, and the railroad used the proceeds of the bond sale to issue a 30 percent cash dividend on its stock. 

The Chicago & Alton Railway was incorporated on April 2nd, 1900, to take over a line from Springfield to Peoria, and on the following day, it leased the Chicago & Alton Railroad. The two companies were consolidated as the Chicago & Alton Railroad in 1906. In 1904 control passed to Union Pacific and the Rock Island, and in 1907 to the Toledo, St. Louis & Western (the Clover Leaf, later part of the Nickel Plate).

In 1912 the Chicago & Alton began a string of deficit years that continued almost unbroken to 1941. It lost much of the coal traffic it had carried to Chicago, and the cattle trade from Kansas City disappeared (Blackstone had been one of the developers of the Chicago Union Stockyards). In 1922 the Chicago & Alton entered receivership. 

The Baltimore & Ohio, perhaps in an expansionist mood brought on by the Interstate Commerce Commission's proposal to consolidate U.S. railroads in 19 systems, purchased the road at foreclosure sale in 1929. B&O incorporated the Alton Railroad on Jan. 7th, 1931, and on July 18th of that year, the Alton purchased the property of the Chicago & Alton Railroad. For 12 years the Alton was operated as part of the B&O, but on March 10th, 1943, B&O restored its independence. 

Several midwestern railroads considered purchasing the Alton but declined; Gulf, Mobile & Ohio offered merger. In 1945 GM&O paid B&O approximately $1.2 million for all its claims against the Alton and all its Alton stock. The effective date of the merger was May 31st, 1947.