LaFayette, Muncie and Bloomington Railroad
| Company type | Railroad |
|---|---|
| Industry | Rail transport |
| Founded | July 13, 1869 |
| Defunct | April 28, 1879 |
| Fate | Acquired by Lake Erie and Western Railroad |
| Headquarters | United States |
Area served | Indiana, Illinois |
Key people | Ashal Gridley (president), Richard Price Morgan (chief engineer) |
The LaFayette, Muncie and Bloomington Railroad (LM&B) was officially formed in Indiana on July 13, 1869, and operated across Indiana and eastern Illinois until its acquisition by the Lake Erie and Western Railroad on April 28, 1879. The railway connected Muncie westward through Lafayette en route to Bloomington. The board of directors included four members from New York City, one from Springfield, Illinois, and several representatives from nearby communities. Ashal Gridley of Bloomington served as the initial president. Funding primarily came from bonds issued by municipalities along the railroad's path. The construction contract was awarded to Howard and Weston, while Richard Price Morgan held the position of chief engineer.
Construction commenced in 1869, leading to the establishment of new settlements along the line. Laborers resided in company-provided boarding shacks, with their living expenses deducted directly from their paychecks. Early financial challenges caused construction delays until new contractors took over the project. By November 1871, the tracks extended to Saybrook in McLean County, marked by a celebratory event featuring a locomotive named "General Gridley." Freight service began operating by 1872.
A derailment involving a construction train occurred near Paxton in Ford County on June 18, 1872, resulting in seven fatalities and twenty-five injuries. Shortly thereafter, customers raised concerns about "unfair rates," shipment delays, and a shortage of freight cars during harvest season. Local taxpayers expressed opposition to bond repayments for a service they could not influence. In October 1876, LM&B expanded its operations by leasing the Lafayette, Bloomington and Mississippi Railroad.