Toledo, Peoria and Western Railway

Toledo, Peoria and Western Railway
Company type	Shortline railroad
Industry	Rail transport
Predecessor	Peoria and Oquawka Railroad, Logansport, Peoria and Burlington Railroad, Toledo, Peoria and Warsaw Railway
Founded	1849 (as Peoria and Oquawka Railroad)
Headquarters	Bound Brook, New Jersey (under TP&W Acquisition ownership), United States
Area served	Illinois, Indiana
Key people	Gordon Fuller (president under TP&W Acquisition)
Products	Freight rail transport
Owner	Genesee & Wyoming Inc. (as of 2024)

The Toledo, Peoria and Western Railway, once informally known as the "Tip-Up", is a shortline railroad that operates approximately 168 miles of track connecting Mapleton, Peoria, Illinois, and Logansport, Indiana. The TP&W maintains interchange relationships with several regional railroads and holds trackage rights on routes between Peoria and Galesburg, Logansport and Kokomo, as well as from Reynolds to Lafayette. As of 2024, the railroad is under the ownership of Genesee & Wyoming Inc.

Company formation and expansion

The earliest forerunner of the Toledo, Peoria and Western was the Peoria and Oquawka Railroad, which was chartered in 1849 with the goal of linking the Illinois River at Peoria to the Mississippi River. By 1857, the railroad had completed its line between Peoria and East Burlington, Illinois. Despite its name suggesting otherwise, it did not serve Oquawka, Illinois due to opposition from local residents.

By 1860, the track extended eastward to the Illinois-Indiana border at Effner, Illinois, where it connected with the newly formed Logansport, Peoria and Burlington Railroad (LP&B). After entering receivership in 1859, the Peoria and Oquawka was absorbed by the Chicago, Burlington and Quincy Railroad (CB&Q). In 1861, ownership of the line from Peoria to Effner was transferred to LP&B, which reorganized as the Toledo, Peoria and Warsaw Railway (TP&W) in 1864.

Although "Toledo" appeared in its name, the railway never actually reached Toledo, Ohio. In 1868, TP&W acquired the route between Peoria and Warsaw, Illinois from the Mississippi and Wabash Railroad. By 1871, it inaugurated two lines: a main route crossing the Mississippi River between Hamilton and Keokuk, Iowa, plus a branch from La Harpe to Lomax, allowing interchange with CB&Q. Additionally, TP&W gained trackage rights over CB&Q’s branch extending from Lomax to Burlington, Iowa.

Financial struggles in the late 1870s led to a reorganization in 1880 under the name Toledo, Peoria and Western Railroad (TP&W), which was leased by the Wabash, St. Louis and Pacific Railway until 1884. The Toledo, Peoria and Western Railway was incorporated on March 28, 1887 to recommence operations independently. In 1893, control was acquired by the Pennsylvania Railroad (PRR), which leveraged TP&W to extend its western terminus to Keokuk and facilitate interchange with CB&Q at Lomax. Shortly thereafter, ownership of TP&W became jointly held by CB&Q and PRR.

George McNear ownership and disputes

By the early twentieth century, Peoria had emerged as a crucial hub for several class I railroads including CB&Q and PRR. Declining traffic caused TP&W to operate at a loss during this period; it entered receivership in the mid-1920s. Passenger numbers dwindled as paved highways developed parallel to its routes. Both CB&Q and PRR sought to absorb TP&W; however, in 1926 George P. McNear Jr., a former executive at New York Central and investor, purchased the railway for $1.3 million.

As president of TP&W, McNear ended receivership by selling assets for $500,000—including a terminal sold to the Peoria and Pekin Union Railway—and issued bonds worth $800,000. He discontinued excess connections with CB&Q at Lomax in favor of establishing links with the Atchison, Topeka and Santa Fe Railway (Santa Fe). TP&W promoted itself as an alternative bypass route circumventing congestion around Chicago and St. Louis rail traffic corridors, gaining popularity among neighboring railroads.

Under McNear’s leadership, TP&W modernized its equipment fleet and accelerated freight services while discontinuing passenger and mail operations. In 1937, six H-10 class 4-8-4 "Northern" locomotives were acquired from ALCO—known as North America’s lightest engines of this type—improving operational performance. Remarkably, TP&W remained profitable throughout the Great Depression when many railroads struggled.

However, McNear’s stringent labor policies sparked conflicts with thirteen unions that led to multiple strikes. A significant strike erupted on December 28, 1941 after TP&W implemented new wage scales and working rules. This strike concluded on March 21, 1942 when President Franklin D. Roosevelt placed TP&W under federal control to support wartime logistics; John W. Barriger III was appointed federal manager. Control reverted back to McNear in 1945 but labor unrest resumed immediately with strikes that lasted nineteen months amid violent confrontations including fatal shootings.

In December 1946 a federal injunction compelled TP&W to resume operations. On March 10, 1947 McNear was fatally shot during a blackout; his murder remains unsolved but is widely suspected to be connected to labor disputes. Subsequently management passed to trustees of McNear’s estate while J. Russell Coulter from Frisco Railway assumed presidency. Coulter reinstated most prior labor policies by May 1947 ending the strike.

These labor conflicts caused TP&W to lose half its traffic volume along with key personnel departures. Nevertheless by the early 1950s under Coulter’s guidance the railroad regained lost traffic levels and returned to profitability. Coulter spearheaded dieselization using ALCO and EMD locomotives completed by October 1950. TP&W increased marketing efforts positioning itself as a bypass route and origin point for Peoria freight while broadening interchange partnerships with PRR, Santa Fe, CB&Q, Minneapolis and St. Louis Railway (M&StL), Nickel Plate Road (NKP), and New York Central.

PRR and Santa Fe management

In January 1960, the Pennsylvania Railroad (PRR) and the Atchison, Topeka and Santa Fe Railway jointly acquired the TP&W from the McNear estate, each obtaining a 50% ownership stake. Throughout the 1960s, TP&W experienced a downturn in traffic volumes as several crucial interchange partners were absorbed by larger railroads: Minneapolis and St. Louis was taken over by Chicago and North Western in 1960; Norfolk and Western acquired NKP and Wabash in 1964; and PRR merged with New York Central to create Penn Central in 1968.

Santa Fe constructed a bypass around Streator, Illinois, enabling direct interchange with New York Central, while TP&W secured trackage rights over Santa Fe’s line between Lomax and Fort Madison to preserve its interchange alternatives. By 1970, TP&W operated 239 miles of its own tracks within a total of 323 miles of trackage and reported revenue freight totaling 520 million ton-miles.

In February 1970, a barge tow accident caused the collapse of TP&W’s Illinois River bridge at Peoria. Unable to finance a replacement bridge, TP&W obtained trackage rights over the nearby Peoria and Pekin Union Railroad bridge. Upon Conrail’s establishment in 1976, TP&W purchased the former PRR track segment between Effner and Logansport to maintain eastern connections.

Santa Fe bought out PRR’s share in TP&W from Conrail in 1979, making TP&W a fully owned subsidiary. After the Staggers Rail Act of 1981, Conrail ceased its interchange with TP&W at Logansport in favor of its NYC Streator connection, which contributed to further reductions in traffic.

To counteract these losses, Santa Fe introduced intermodal container services on TP&W. In 1983, the Hoosierlift Intermodal Terminal was established near Remington, Indiana. Although initially challenged by competition from Santa Fe’s Chicago terminal, TP&W’s intermodal operations soon became profitable. On December 31, 1983, TP&W was merged into Santa Fe’s Illinois Division, allowing for abandonment of most of the Pekin Branch.

Post-Santa Fe developments

On February 3, 1989, Santa Fe divested the former TP&W right-of-way along with nineteen EMD GP20 locomotives to TP&W Acquisition, a company led by SeaLand service director Gordon Fuller. This transaction revived TP&W as an independent railroad. The leveraged buyout imposed significant debt obligations to investment firms including Toronto-Dominion Bank; however, Fuller prioritized directing profits toward debt repayment during his tenure as president.

Fuller established TP&W’s headquarters in Bound Brook, New Jersey, strategically close to major shipping enterprises. The railroad cultivated interchange agreements with CSX Transportation at Watseka, Illinois; Illinois Central at Gilman; and Southern Pacific at Chenoa. For a time, it operated unit coal trains through CSX before losing that business to Chicago and North Western.

By the mid-1990s, intermodal container shipments accounted for approximately 55% of TP&W’s traffic volume, primarily transporting automotive components for major customers such as an Isuzu facility in Lafayette, Indiana; a Mitsubishi plant in Normal, Illinois; and Caterpillar Inc. Additionally, TP&W recovered some freight near Logansport following the establishment of the Winamac Southern Railway. Several locomotives were repainted in gray New York Central colors as homage to Fuller’s early career.

Following Santa Fe’s merger with Burlington Northern Railroad to form BNSF Railway in 1995, TP&W obtained trackage rights on BN lines between Peoria and Galesburg. In May of that year, Fuller sold a 40% interest to New York, Susquehanna and Western Railway (NYS&W) for $2.25 million; by 1996 Delaware Otsego Corporation (DO), NYS&W’s parent company, assumed full ownership. Fuller became DO’s executive vice president while continuing oversight of TP&W operations.

Under DO's ownership, TP&W functioned as a western terminus for NYS&W's intermodal services originating from New York City. The headquarters relocated to DO's Cooperstown facility where dispatching was consolidated. Nine GP20 locomotives were rebuilt and repainted in NYS&W's distinctive yellow-and-black livery and occasionally operated on NYS&W routes. By 1998, TP&W reported revenues of $13.4 million from hauling over 59,000 freight and intermodal trains.

Despite these gains, NYS&W experienced financial challenges due to declining intermodal traffic. In response to Conrail’s announced division between CSX and Norfolk Southern in 1997, DO CEO Walter Rich sought shareholder solutions by organizing a joint acquisition of DO shares with CSX and NS. Subsequently, in August 1999, DO sold TP&W to RailAmerica for $24 million.

By 2010, TP&W’s traffic composition had shifted predominantly toward agricultural commodities such as grain and chemicals along with completed tractors; intermodal services had been discontinued. In December 2012 Genesee & Wyoming Inc. acquired RailAmerica—and thereby TP&W—repainting its locomotives with G&W’s orange-and-black color scheme.

Transfer of track ownership to Keokuk Junction Railway

On December 24, 1986, the Santa Fe divested a 28-mile segment of the TP&W line stretching from La Harpe to Keokuk, selling it to the Keokuk Junction Railway (KJRY), which had been established to manage former Rock Island tracks in the Keokuk area. Subsequently, KJRY commenced service to a corn-processing facility operated by Roquette America.

In March 1996, Pioneer Railcorp acquired KJRY as a subsidiary. Later, on February 11, 2005, KJRY expanded its operations by purchasing the western portion of the TP&W route between La Harpe and Peoria, thereby incorporating an additional 76 miles into its system.

Notable accidents and incidents

On August 10, 1887, an excursion train operated by TP&W derailed near Chatsworth, Illinois, resulting in the tragic Great Chatsworth train wreck with 80 fatalities.
On February 2, 1965, westbound TP&W freight train number 23 collided with a semi-trailer at a Route 66 grade crossing in Chenoa, Illinois, causing derailment and extensive damage to the locomotives.
On June 21, 1970, eastbound freight train number 20 of TP&W derailed within Crescent City, Illinois; ruptured propane tank cars caught fire, devastating much of the local commercial district and causing injuries to 64 individuals.

Bibliography

Ottesen, Mark (March 1997). "The new Toledo, Peoria & Western". Trains. Kalmbach Publishing. pp. 56–61.

External links

Toledo, Peoria & Western Railway (TPW)