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Milwaukee Road

From Alfawiki
Chicago, Milwaukee, St. Paul and Pacific Railroad
Company typeRailroad
IndustryRail transport
Founded1847
Defunct1986
FateIntegrated into Soo Line Railroad (Canadian Pacific Railway subsidiary)
Headquarters
Chicago
,
United States
Area served
Midwestern United States and Pacific Northwest
ProductsRail freight and passenger transport

The Chicago, Milwaukee, St. Paul and Pacific Railroad (CMStP&P), commonly referred to as the Milwaukee Road, was a Class I railroad that operated across the Midwestern United States and the Pacific Northwest from 1847 until 1986.

Throughout the 1970s and 1980s, the railroad encountered significant financial difficulties, culminating in bankruptcy in 1977. In 1980, it discontinued its Pacific Extension line that traversed Montana, Idaho, and Washington. The remaining segments of the railroad were integrated into the Soo Line Railroad, a subsidiary of Canadian Pacific Railway, effective January 1, 1986. Numerous sections of its original track are still in use today under different rail operators. The Milwaukee Road's legacy persists through landmarks such as the historic Milwaukee Road Depot and preserved locomotives like Milwaukee Road 261, which continues to operate excursion services.

Chicago, Milwaukee, St. Paul and Minneapolis Railroad

The Milwaukee Road traces its origins to the Milwaukee and Waukesha Railroad established in Wisconsin with the goal of linking Milwaukee—a port city on Lake Michigan—to the Mississippi River. Founded in 1847, it was renamed the Milwaukee and Mississippi Railroad in 1850 prior to commencing construction. The initial segment between Milwaukee and Wauwatosa opened in November 1850, extending subsequently to Waukesha, Madison, and Prairie du Chien by 1857.

Following financial strain during the Panic of 1857, the railroad entered receivership in 1859 and was taken over by the Milwaukee and Prairie du Chien Railroad in 1861. In 1867, businessman Alexander Mitchell consolidated this line with the Milwaukee and St. Paul (previously known as the La Crosse and Milwaukee Railroad Company) under the unified name Milwaukee and St. Paul. Prominent investors included Mitchell himself, Russell Sage, Jeremiah Milbank, and William Rockefeller—whose participation secured vital land grants essential for financing.

After extending its reach to Chicago by 1872, the company adopted the name Chicago, Milwaukee and St. Paul Railway Company in 1874. Its expansion continued through acquisitions such as the Chicago and Pacific Railroad Company in 1879—which constructed what would become known as the Bloomingdale Line (now The 606) and part of today’s Milwaukee District West Line—and the Milwaukee and Northern Railroad acquired in 1890. By this time, its network covered Wisconsin, Minnesota, Iowa, South Dakota, and Michigan’s Upper Peninsula.

The corporate headquarters relocated from Milwaukee to Chicago’s Rand McNally Building by 1890; however, car and locomotive shops remained based in Milwaukee. Later administrative offices were situated within Chicago’s Railway Exchange Building before moving to Chicago Union Station in 1924.

Pacific Extension

In an effort to maintain competitiveness during the 1890s, company leadership resolved to extend their rail line westward to reach the Pacific. A survey conducted in 1901 estimated construction expenses at $45 million, which increased to $60 million by 1905. To manage this project, they established the Chicago, Milwaukee and Puget Sound Railway Company as a subsidiary in 1905, charged with building from the Missouri River all the way to Seattle and Tacoma. Horace Chapin Henry from Seattle oversaw construction on the western portion.

Work commenced in 1906 and concluded by 1909. Although this route was shorter than those of competitors and featured more favorable grades, it proved expensive due to limited land grant availability. This necessitated extensive land purchases along with acquiring smaller railroads. The line crossed several major mountain ranges—the Rockies and Cascades—presenting considerable engineering challenges that required additional locomotive power.

The railroad navigated diverse terrain with five mountain crossings: Belts, Rockies, Bitterroots, Saddles, and Cascades. Some historians have criticized this route for avoiding population centers while paralleling the Northern Pacific Railway, thereby limiting opportunities for local freight traffic. Trains described it as a "disaster," while George H. Drury listed it among management's "wrong decisions" that contributed to the railroad’s eventual decline.

Starting from 1909, several smaller rail lines were acquired to serve as branch lines along this Pacific Extension:

  • The Montana Railroad formed part of the mainline through Sixteen Mile Canyon along with a North Montana Line connecting Harlowton to Lewistown, which accounted for roughly 30% of Milwaukee Road's traffic by the 1970s.
  • The Gallatin Valley Electric Railway linked Bozeman to Three Forks; in 1927, the company constructed the Gallatin Gateway Inn, facilitating passenger transfers en route to Yellowstone National Park.
  • The White Sulphur Springs & Yellowstone Park Railway primarily transported lumber and agricultural goods.

Operating conditions across mountainous areas were harsh: winter temperatures frequently fell below , complicating steam locomotive operations on steep inclines and tight curves. To enhance efficiency between 1914 and 1916, Milwaukee Road electrified a 438-mile stretch between Harlowton, Montana and Avery, Idaho using a 3,000-volt DC overhead system. Encouraged by this success, an additional electrification project covering 207 miles from Othello to Tacoma was completed between 1917 and 1920. This section included passage through the single-track Snoqualmie Tunnel beneath the Cascades near Snoqualmie Pass, adjacent to a company-operated ski area that existed from 1937 to 1950.

At that time, this represented the world's largest main-line electrification project and remained unmatched within the United States until similar efforts by Pennsylvania Railroad during the 1930s. Due to differing terrain challenges, these two electrified districts—Montana-Idaho and Washington—remained separate systems. The electrification investment totaled $27 million but yielded annual savings exceeding $1 million through improved operational efficiency.

Bankruptcies

On January 1, 1913, the Chicago, Milwaukee, and Puget Sound Railway was integrated into its parent corporation. The Pacific Extension project, which included electrification, ultimately cost the Milwaukee Road $257 million—exceeding the initial $60 million estimate by more than fourfold. To fund this venture, the company issued bonds maturing in the 1920s. However, traffic volumes failed to meet expectations, and financial troubles intensified in the early 1920s following the acquisition of several heavily indebted railroads in Indiana. The company filed for bankruptcy in 1925 and emerged from reorganization in 1928 under the new name Chicago, Milwaukee, St. Paul and Pacific Railroad. In 1927, it introduced a revamped version of the Olympian luxury passenger train and inaugurated its first railroad-operated tourist hotel, the Gallatin Gateway Inn in Montana. By 1929, the railroad's total trackage extended to 11,248 miles.

The reorganization brought limited improvement prior to the onset of the Great Depression. Despite technological advancements such as the high-speed Hiawatha trains capable of surpassing 100 mph, Milwaukee Road declared bankruptcy again in 1935 and remained under trusteeship until December 1, 1945. During World War II, it supported the U.S. Army’s 757th Railroad Shop Battalion.

Postwar

Following World War II, Milwaukee Road experienced a brief resurgence. After emerging from bankruptcy and with the removal of wartime restrictions on passenger services, it modernized its fleet: the Olympian Hiawatha resumed operations between Chicago and Puget Sound in 1947, while the Twin Cities Hiawatha received new rolling stock in 1948. The transition to diesel locomotives accelerated and was completed by 1957. In 1955, Milwaukee Road assumed responsibility for Union Pacific’s streamliner trains running between Chicago and Omaha from Chicago and North Western.

Nevertheless, industry downturns during the late 1950s and into the 1960s severely impacted Milwaukee Road due to excess capacity in the Midwest and fierce competition along transcontinental routes. The flagship Olympian Hiawatha was discontinued in 1961. The departure of President John P. Kiley in 1957 and his replacement by William John Quinn signaled a strategic pivot toward pursuing mergers as a potential remedy for ongoing financial difficulties.

Mergers among railroads required approval from the Interstate Commerce Commission (ICC). In 1969, the ICC rejected Milwaukee Road’s proposed merger with Chicago and North Western Railway (C&NW), imposing conditions that C&NW found unacceptable. Concurrently, the "Hill Lines" consolidation led to formation of Burlington Northern Railroad.

Early 1970s

The creation of Burlington Northern in 1970 through a merger of Northern Pacific, Great Northern, Burlington Route, and Spokane, Portland and Seattle Railway intensified competition along Milwaukee Road's routes. The ICC granted Milwaukee Road access rights to connect with these new western railroads via Burlington Northern tracks, which increased Pacific Extension traffic to more than four trains daily each direction. This development expanded interchange opportunities with Southern Pacific at Portland, Oregon and Canadian railroads at Sumas, Washington. Prior to service declines after 1974, Milwaukee Road controlled nearly 80% of originating transcontinental freight and half of container shipments from the Port of Seattle.

In 1970, Chicago and North Western's president proposed selling that railroad to Milwaukee Road; however, President William John Quinn declined this offer, believing that only a merger with a larger system could salvage Milwaukee Road’s future. Attempts by Milwaukee Road to join the Union Pacific merger involving the Chicago, Rock Island and Pacific Railroad were unsuccessful.

By the mid-1970s, deferred maintenance accumulated during the previous decade—intended to enhance financial statements for merger prospects—began to hinder operations significantly. Financial pressures increased as leased railcars were sold to financial institutions, leading to higher lease expenses and reduced capital available for acquiring new equipment. Consequently, an aging fleet combined with car shortages discouraged customers.

Milwaukee Road discontinued mainline electrification as its electric locomotives became obsolete while newer diesel models such as the EMD SD40-2 and GE Universal Series demonstrated greater efficiency. The final electric freight service reached Deer Lodge, Montana on June 15, 1974.

Facing persistent financial challenges, Milwaukee Road applied in 1976 for inclusion within Burlington Northern; however, the ICC denied this petition on March 2, 1977.

Final bankruptcy

From 1974 through 1977, the Milwaukee Road incurred losses amounting to $100 million, culminating in its third bankruptcy filing within 42 years on December 19, 1977. The bankruptcy proceedings were supervised by Judge Thomas R. McMillen until the railroad’s eventual sale in 1985. A fundamental challenge for the company was maintaining an oversized physical network relative to its income; in 1977, it controlled of track, with 36% of that infrastructure producing merely 14% of total revenue. To address this imbalance, trustees aimed to sell or abandon unprofitable segments to establish a leaner, financially viable railroad rather than pursuing outright liquidation.

In 1980, the stretch between Marquette, Iowa and Rapid City, South Dakota was embargoed and subsequently acquired by the South Dakota Department of Transportation. Between 1977 and 1984, the total route mileage decreased to , effectively ending transcontinental service to the West Coast. Although traffic volume rose due to the Burlington Northern merger, deteriorating track conditions necessitated slower speeds. Attempts to restore the Pacific Extension were unsuccessful, resulting in the cessation of operations west of Miles City, Montana by February 1980.

By 1982, the downsized railroad achieved modest profitability. That same year, its commuter rail operations were transferred to the Northeast Illinois Regional Commuter Rail Corporation (currently known as Metra). During reorganization efforts, three potential purchasers emerged: Grand Trunk Corporation, Chicago and North Western Railway, and Soo Line Railroad. The Interstate Commerce Commission sanctioned bids from both Soo Line and C&NW; however, Judge McMillen approved Soo Line’s offer in February 1985. Soo Line then restructured the assets as Milwaukee Road, Inc., completing a full merger by January 1, 1986. In 1990, Canadian Pacific acquired Soo Line and eventually merged it with Kansas City Southern Railway.

In 1982, Burlington Northern purchased remaining mainline segments leading to Miles City via Aberdeen and other Montana routes.

Following Soo Line’s acquisition, the Milwaukee Land Company (which reverted to Chicago Milwaukee Corporation control) managed residual real estate holdings extending from Bedford, Indiana to Washington state. These properties were redeveloped into commercial or industrial facilities. However, Chicago Milwaukee Corporation encountered significant legal and financial difficulties related to environmental remediation at former railroad sites and filed for bankruptcy under various corporate identities until its ultimate liquidation in 2010.

Numerous abandoned corridors of the Pacific Extension have been transformed into recreational rail trails such as the Palouse to Cascades State Park Trail (Washington), Milwaukee Road Rail Trail (Idaho), Route of the Hiawatha Trail (Idaho/Montana), Midtown Greenway (Minnesota), Bugline Trail (Wisconsin), and Milwaukee Road Transportation Trailway (Indiana). Presently, former Milwaukee Road and Soo Line tracks constitute parts of Midwest routes operated by Canadian Pacific Kansas City.

After abandonment in 1984, various entities acquired sections of the Pacific Extension in Washington. In 1989, Tacoma Rail purchased lines south of Tacoma and leased them to Tacoma Eastern Railway until assuming freight operations itself in 1998. The Centralia–Curtis segment was bought by Weyerhauser for lumber transport and later leased to heritage operator Chehalis–Centralia Railroad established in 1986; ownership transferred through Port of Chehalis before reverting back to the railroad in 2019. A portion running from Royal Slope to Othello was acquired by Port of Royal Slope in 1982 and operated as Royal Slope Railroad until control passed to Washington State Department of Transportation in 1994.

The Milwaukee Road Historical Association retains trademarks and copyrights related to Milwaukee Road branding except for AAR reporting marks (MILW), which remain under Soo Line Railroad’s control operating as Canadian Pacific Kansas City Railway within the Midwest region.

Passenger train operations

Throughout its existence, the Milwaukee Road actively promoted its passenger services, consistently delivering high standards until private intercity rail operations ceased in 1971. The railroad’s reputation for pioneering, vibrant trains and self-manufactured rolling stock played a significant role in Union Pacific’s decision to transfer its prestigious "City" streamliners to Milwaukee Road management in 1955.

Among its distinguished trains were the Pioneer Limited, recognized as one of the earliest named trains, and the renowned Hiawatha streamliners, which established new benchmarks in design following World War II.

Beginning in November 1955, Milwaukee Road collaborated with Union Pacific to operate UP’s flagship trains: City of Los Angeles, City of Portland, City of Denver, and Challenger, along with the joint UP/Southern Pacific City of San Francisco. Subsequently, Milwaukee Road adopted Union Pacific’s Armour yellow, grey, and red color scheme to streamline maintenance efforts.

Most of the streamlined equipment was constructed internally at Milwaukee’s Menomonee Valley facilities, including four successive generations of Hiawatha trains produced between 1933 and 1948. Notable designs featured the 1930s "Beaver Tail" observation cars and Brooks Stevens’ 1940s "Skytop Lounge" cars. The extended Skytop Lounges used on the Olympian Hiawatha were later augmented by Pullman-manufactured cars; some trainsets were eventually sold to Canadian National Railway.

Prior to Amtrak’s takeover in 1971, regional routes included the Twin Cities Hiawatha serving Minneapolis, the Sioux running to Madison, the Milwaukee Express, and the Varsity also connecting to Madison. Amtrak continues to operate key services along former Milwaukee Road corridors: the long-haul Empire Builder between Chicago and St. Paul, the corridor service Hiawatha linking Chicago and Milwaukee, and starting in 2024, an additional daily route named the Borealis from Chicago to St. Paul.

The Milwaukee Road also managed extensive commuter rail networks within Chicago’s northern and western suburban areas until its bankruptcy in 1982. These commuter lines were transferred to the Regional Transportation Authority and are currently operated by Metra as the Milwaukee District North Line and Milwaukee District West Line. Freight operations on these routes continue under trackage rights granted to Canadian Pacific, which also oversees dispatching.

In popular culture

  • The 1930 motion picture Danger Lights was filmed on location within Milwaukee Road’s yard and shop facilities at Miles City, Montana, as well as along its mainline tracks.

See also

References

Further reading

External links

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