History question...
#1
How common was it back in the old days (1900s-1930s) for a railroad company to acquire trackage from another railroad that had become defunct and bank-owned? I'm working on writing the history for my freelanced road, and I want to ensure some degree of accuracy.
Tony
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#2
The first question is, how often did railroads go bankrupt then?
Fan of late and early Conrail... also 40s-50s PRR, 70s ATSF, BN and SP, 70s-80s eastern CN, pre-merger-era UP, heavy electric operations in general, dieselized narrow gauge, era 3/4 DB and DR, EFVM and Brazilian railroads in general... too many to list!
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#3
Wouldn't be a matter of "buying" a defunct railroad back then. More like a buying up of the railroad's stocks. Sometimes, as with the case of the New Haven, leasing desirable routes, stipulating that their trains had priority. Eventually leading to the owner of the "right of way" the New Haven was leasing from, declaring bankruptcy, and the NH buying up the stock at a considerable small amount. Don't forget, that was the era of the "Robber Barons"

As with the case of the real Central New England(I model a modern version "What if"), the New Haven wanted the CNE's route and the bridge over the Hudson River in Poughkeepsie NY., to reach the coal fields in Pennsylvainia. They quietly started buying up stock. Since the NH was interchanging with the CNE, they purposely started delaying trains for interchange. Eventually, the CNE fially declared bankruptcy, and as with the norm for the NH, they bought the reamining stock.

Its your railroad. As long as the story sounds plausable , A neat thing would be to interlace actual history, of a fallen flag, with a plausible story of how your railroad came to being, such as I did with my Central New England.
You can read the history, actual and imaginary here:
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Torrington, Ct.
NARA Member #87
I went to my Happy Place, but it was closed for renovations.
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#4
Thanks 88fan, that puts things in perspective and gave me the inspiration I needed to complete the history of my freelanced road.
Tony
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#5
Canadian National Railways was formed 1919 - 1923 from the Intercolonial, Grand Trunk, Canadian Northern, and Canadian Government Railways (itself a collection of railways that didn't quite work out...). The Grand Trunk and CNor were an "unsuccessful" competitors to the Canadian Pacific. CPR was the first trans-Canada road, itself acquiring competitors both defunct and competitive as it "fleshed out" its routes beyond the track from Montreal to Vancouver.

Part of the reason that there was so much available is that it was often more profitable to build a railway than to run it. It was (as Ed says) the age of the Robber Baron, and railways were the "dot com" of the time.

However, both CNR and CPR continued to acquire rights throughout the early 20th century to roads built by others, a practice that has lead them to be two of the biggest roads in North America today.

So whatever your scenario, it is entirely possible, and probably likely, that there is a similar prototype story out there.

Andrew
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#6
Glad to help.
Hope we see a short history of your line here.
Torrington, Ct.
NARA Member #87
I went to my Happy Place, but it was closed for renovations.
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#7
Writing the history, can be as much fun as building the railroad. The history also opens the door to what type of businesses, homes, and topographical features, make up the layout. Then, there are the characters who work and live there, and how they came to be there. Someday I'll give the characters names, but for now, the two principle characters are the mayor, and the owner of the shipyard. The primary topic is the small piece of property needed to ease the one bad curve on the narrow gauge. Then, there is the NYC Hudson, found buried in a scrap yard, before it could be cut up.
Hmmmmm, this "history" could become a series of books. I'd better finish the layout before I start writing. Big Grin
We always learn far more from our own mistakes, than we will ever learn from another's advice.
The greatest place to live life, is on the sharp leading edge of a learning curve.
Lead me not into temptation.....I can find it myself!
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#8
Well, I dunno about short...but here's my road's history. You can also view it (with pics) on the Erie & Southern History page on my website.

The Early Years

The origins of the Erie & Southern Railroad can be traced as far back as the 1860’s. Originally a narrow-gauge shortline that serviced Ohio’s coal fields, through mergers and timely acquisitions, the lines steadily grew into a Class I railroad.

Under the guise of shared prosperity, several mine owners joined together to form the Goshen-Amsterdam Railway, named after area coal fields, in 1859. Founded on little more than a handshake over a bottle of whiskey, the railroad was led by Arden L. Cain, owner of the Empire Coal Corporation. Within a year, rails were laid to reach over two dozen tipples. Trains took coal to ports at both Steubenville, Ohio and Wheeling, West Virginia.

Financial windfall and bickering among coal company magnates over its operation forced an agreement to sell off the line so that focus could shift back to running their respective mines. In 1872, the railroad was sold to foreign investors looking to gain a foothold on the budding US railway industry. Based out of Canton, Ohio, the new conglomerate extended their rails south and aptly renamed the road the Canton & Ohio River Railroad.

Prohibition and WWII

By the turn of the century, rails had been upgraded to standard gauge and reached north to Lake Erie via Akron and Cleveland. Due to a fire at the main office in Canton in 1923, records were destroyed and it is unknown how the railroad came into such a state of dire disrepair by the prohibition era.

In 1931, area businessmen from Norwalk, Ohio held a meeting at the home of Hon. David M. Buchannon. The Norwalk Railway was then formed partly due to a trackage rights agreement with the Nickel Plate Road between the NKP’s home yard in Bellevue and the city of Norwalk. In 1932, the newly formed Wauseon Railroad begins laying track, and in 1933, both roads reach Bowling Green, Ohio at nearly the same time. Soaring construction costs force the competitors to examine their situation more closely. Talks of a merger begin in late August, 1936.

With its first issuance of public stock in 1937, the merger is completed and the Wauseon & Norwalk Railroad is founded. Still reeling from construction costs and the impact of the Great Depression, the budding railroad is unable to operate in the black for several years. With a healthy stock purchase from NKP, the W&N is finally able to retire old motive power and upgrade its entire operation in 1939.

With a greater vision in mind, W&N president James. R. Fitzgerald quietly began buying up stock in the nearly defunct Canton & Ohio River Railroad. As operating cash dwindled over the next several years, Fitzgerald practically stole the ailing company as weeds began to grow between their ties. Upon becoming majority shareholders in 1941, the W&N leased C&OR tracks to other railroads, generating capital for themselves and driving down the value of C&OR stock.

In 1942, as the US enters WWII, the railroad shifts its focus almost entirely to the war effort. The former Lima Locomotive Works facility is purchased by the Army Ordinance Division, and is slated to serve as an intermediate depot for modifying combat vehicles, including tanks. Nearly all W&N engines were diverted to serving this new facility.

By 1945, the war was winding down and the railroad had resumed normal freight operations. With a new injection of funds, the W&N sought to aggressively expand. It purchased the rest of C&OR stock for pennies on the dollar and restructured, giving birth to the Erie & Southern Railroad in May of 1946. All lines and motive power were upgraded, depots refurbished, and for the first time in its history, the railroad adopts a formal paint scheme. Passenger service operations began in 1947.

The Cost of Prosperity

1948 brought about even more changes. Corporate headquarters were moved to Norwalk, Ohio and the company bought back large portions of NKP-owned stock. Under the guidance of a new CEO, the railroad streamlined and standardized all operations. It began to offer wages and benefits to its workers that were previously unheard of in the industry. Combined, these and other decisions sent the railroad to the brink of bankruptcy by the end of 1950.

Fall, 1953 (current day) – The Erie & Southern is once again operating at a profit, largely do to its very public “safety first” campaign which has energized the masses about traveling by train. The railroad is lauded for providing excellent service by both the private and industrial sectors. Though a marginal part of its operations, the E&S recently purchased two new EMD F7 units, which are dedicated solely to passenger service.

The majority of E&S operations take place between their Norwalk yard, and the NKP yard, located at Bellevue where switchers perform daily tasks of making and breaking trains for the Nickel Plate Road. Like with its labor practices, the E&S is again attempting to be an industry leader and is among the first to use covered hopper cars for the purpose of grain loading and unloading.
Tony
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#9
It happened commonly amongst the narrow gauge railroads of the Rockies.
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#10
Good story.
Very believable.
Torrington, Ct.
NARA Member #87
I went to my Happy Place, but it was closed for renovations.
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#11
Sounds feasible enough to be real.. Thumbsup
Larry
Engineman

Summerset Ry

Make Safety your first thought, Not your last!  Safety First!
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