Saint Paul and Pacific Railroad

Saint Paul and Pacific Railroad

Company type	Private
Industry	Railroad
Predecessor	Minnesota and Pacific Railroad
Founded	1857
Defunct	1879
Fate	Assets acquired by St. Paul, Minneapolis and Manitoba Railway
Headquarters	Minnesota , United States
Key people	James J. Hill, Egbert E. Litchfield, E. Darwin Litchfield
Products	Rail transport services

The Saint Paul and Pacific Railroad (SP&P) was a regional railroad in Minnesota that operated from 1857 until 1879. It initially launched as the Minnesota and Pacific Railroad, marking the state's first functioning railroad, but after facing bankruptcy, it was rebranded as SP&P. Following a second insolvency, ownership transferred to James Jerome Hill and his associates, who utilized the line as a foundation for creating the Great Northern Railway.

Early history

Established by Minnesota's territorial legislature in 1857, the Minnesota and Pacific Railroad was intended to construct a standard gauge railway stretching from Stillwater to St. Paul, continuing westward to Breckenridge near the Dakota Territory boundary. The plan included branch lines extending to St. Cloud, Crow Wing, and St. Vincent. It received a significant land grant covering , ranking seventh among seventy-five railroad land grants issued nationwide between 1850 and 1871.

Construction commenced in late 1856, supported by a $5 million bond authorized by the state in 1857. Nevertheless, poor financial oversight and misappropriation of assets resulted in bankruptcy by 1860. Subsequently, the state legislature acquired its properties for $1,000.

Saint Paul and Pacific

In 1862, the state reorganized the failed railroad under the name St. Paul and Pacific Railroad. That same year saw the opening of a 10-mile segment between St. Paul and St. Anthony. Egbert E. Litchfield gained control of most shares; by 1867, the line extended to Sauk Rapids, with funding primarily sourced from Dutch bondholders. Although only about 210 miles of track had been laid by 1865 and expansion was minimal between 1867 and 1871, SP&P actively encouraged settlement along every , significantly contributing to Minnesota’s development.

In December 1870, ownership shifted to the Northern Pacific Railway, which itself succumbed to bankruptcy during the Panic of 1873. E. Darwin Litchfield repurchased SP&P but was forced by Dutch investors—who held majority stock—to place it into receivership for three years, during which progress stalled.

Seeing value in SP&P’s land holdings and strategic position, James J. Hill joined forces with financiers such as John S. Kennedy (representing Dutch bondholders), fur trader Norman Kittson, Hudson's Bay Company executive Donald Smith, and railroad executive George Stephen to invest $5.5 million for controlling interest in 1878. This acquisition was formalized through transferring Dutch bonds in March of that year.

Construction was financed through bonds that paid up to $10,000 per mile completed, incentivizing rapid progress. In February 1879, Hill’s consortium purchased the Litchfields’ stake using a combination of cash and bonds issued by the new entity. Reporting profits of $500,000 for 1878, SP&P exited bankruptcy by March after court approval, paving the way for its evolution into a key regional railway under Hill’s leadership.

Demise and future ownership

On May 23, 1879, principal investors established the St. Paul, Minneapolis and Manitoba Railway (StPM&M) to acquire SP&P’s assets, effectively dissolving SP&P by June of that year.

On September 18, 1889, James J. Hill renamed the Minneapolis and St. Cloud Railway—a nominal railroad with extensive land grants—to the Great Northern Railway. By February 1, 1890, Hill consolidated ownership of StPM&M, Montana Central Railway, and additional lines beneath Great Northern’s umbrella, thereby reinforcing its presence across the Midwest and Pacific Northwest.

Since 2018, Progressive Rail Corp., headquartered in Minnesota, has operated freight services in Santa Cruz County, California under the historic St. Paul and Pacific name with reporting marks SP&P/SPP.

Bibliography

• Dreiser, Theodore. Tragic America. London: Constable, 1931.
• Fitzsimmons, Bernard. 150 Years of North American Railroads. Hadley Woods, Hertfordshire, U.K.: Winchmore, 1982.
• Ingham, John N. "Litchfield, Paul Weeks." In Biographical Dictionary of American Business Leaders. Westport, Conn.: Greenwood Press, 1983.
• Lovoll, Odd S. Norwegians on the Prairie: Ethnicity and the Development of the Country Town. St. Paul: Minnesota Historical Society, 2007.
• Malone, Michael P. James J. Hill: Empire Builder of the Northwest. Norman, OK: University of Oklahoma Press, 1996.
• Smalley, Eugene Virgil. History of the Northern Pacific Railroad. New York: G.P. Putnam's Sons, 1883.
• Yenne, Bill. Great Northern Empire Builder. St. Paul, Minn.: MBI Publishing, 2005.