Van Sweringen railroad holdings
Encyclopedia
In addition to streetcar lines, the Van Sweringen Brothers
of Cleveland, Ohio
owned a vast network of steam railroads.
had owned the closely parallel New York, Chicago and St. Louis Railroad
since 1882, soon after its opening. Due to fears of prosecution under the 1914 Clayton Antitrust Act
, the NYC sold the line on July 5, 1915 to the newly formed Nickel Plate Securities Corporation, a holding company
formed by the Vans. They were at first only interested in the line to provide a right-of-way
for their Shaker Heights Rapid Transit to downtown.
By 1920 the Vans had decided they wanted control of other railroads, including the Lehigh Valley Railroad
, Delaware, Lackawanna and Western Railroad
, Western Maryland Railway
, Wheeling and Lake Erie Railway
, Pittsburgh and West Virginia Railway
, Pere Marquette Railway
, Cincinnati Northern Railroad
and Toledo, St. Louis and Western Railroad
(Clover Leaf), as well as partial ownership in the Lake Erie and Western Railroad
and Philadelphia and Reading Railway.
The Vaness Company was incorporated in Delaware on January 9, 1922 as a holding company
to own all the other holding companies. The Clover Leaf Company was incorporated February 25 to own the Toledo, St. Louis and Western Railroad
, and the Western Company March 11 for the Lake Erie and Western Railroad
. The LE&W was bought for $3 million from the New York Central Railroad
on April 26. On July 1, 1923 and LE&W and Clover Leaf were merged into the Nickel Plate.
For the next several years, the Vans bought up the stock of the Chesapeake and Ohio Railway
(including its Hocking Valley Railway
), the Pere Marquette Railway
and the Erie Railroad
. On August 20, 1924 they announced plans to merge the four companies into the New York, Chicago and St. Louis Railroad
(Nickel Plate) to form a new New York, Chicago and St. Louis Railway. They applied to the Interstate Commerce Commission
on February 21, 1925, but were denied March 2, 1926 due to unsound financing. The plan was opposed by many C&O stockholders.
On February 3, 1927 the Vans, along with the New York Central Railroad
and Baltimore and Ohio Railroad
, bought the Wheeling and Lake Erie Railway
. Four days later the Vans announced that they would make the C&O the centerpiece of their system, selling the Erie and Pere Marquette to them.
The Alleghany Corporation was incorporated January 26, 1929 in Maryland
to hold the Vans' stock in the Nickel Plate, Chesapeake Corporation, Erie and C&O, as well as a partial ownership of the Buffalo, Rochester and Pittsburgh Railway
(traded to the Baltimore and Ohio Railroad
in March for the B&O's part of the W≤ the Vans acquired the rest of it from the NYC at the same time). In April 1930 the Alleghany Corporation bought the Chicago and Eastern Illinois Railroad
and 46% of the Missouri Pacific Railroad
, gaining a majority of the MoPac on May 13. The Hocking Valley Railway
merged into the C&O April 30, 1930.
Due to the Great Depression
, the planned "Fourth System" failed. The new Midamerica Company bought most of the old assets on September 30, 1935 in an attempt to reorganize.
The Pere Marquette Railway
merged into the Chesapeake and Ohio Railway
on June 6, 1947. The Nickel Plate leased the Wheeling and Lake Erie Railway
on December 1, 1949, and on October 16, 1964 the Nickel Plate was merged into the Norfolk and Western Railway
. The Erie merged into the Erie-Lackawanna Railroad on October 17, 1960. This left three pieces of the old system - part of the N&W, part of the EL, and the C&O. On August 31, 1965 the N&W and C&O announced a planned merger, with a holding company
named Dereco to own the EL and several other lines. Dereco was incorporated March 1, 1968, acquiring the EL April 1. But the planned merger never happened. The C&O has since become part of CSX Transportation
, the N&W part of the Norfolk Southern Railway
, and the EL part of Conrail, split between CSX and NS in 1998 (at which time most of the former Erie went to NS).
Van Sweringen brothers
Oris Paxton Van Sweringen and Mantis James Van Sweringen were brothers who became railroad barons in order to develop Shaker Heights, Ohio. They are better known as O.P. Van Sweringen and M.J. Van Sweringen, or by their collective nickname, the Vans...
of Cleveland, Ohio
Cleveland, Ohio
Cleveland is a city in the U.S. state of Ohio and is the county seat of Cuyahoga County, the most populous county in the state. The city is located in northeastern Ohio on the southern shore of Lake Erie, approximately west of the Pennsylvania border...
owned a vast network of steam railroads.
History
The New York Central RailroadNew York Central Railroad
The New York Central Railroad , known simply as the New York Central in its publicity, was a railroad operating in the Northeastern United States...
had owned the closely parallel New York, Chicago and St. Louis Railroad
New York, Chicago and St. Louis Railroad
The New York, Chicago and St. Louis Railroad , abbreviated NYC&St.L, was a railroad that operated in the mid-central United States. Commonly referred to as the Nickel Plate Road, the railroad served a large area, including trackage in the states of New York, Pennsylvania, Ohio, Indiana, and Illinois...
since 1882, soon after its opening. Due to fears of prosecution under the 1914 Clayton Antitrust Act
Clayton Antitrust Act
The Clayton Antitrust Act of 1914 , was enacted in the United States to add further substance to the U.S. antitrust law regime by seeking to prevent anticompetitive practices in their incipiency. That regime started with the Sherman Antitrust Act of 1890, the first Federal law outlawing practices...
, the NYC sold the line on July 5, 1915 to the newly formed Nickel Plate Securities Corporation, a holding company
Holding company
A holding company is a company or firm that owns other companies' outstanding stock. It usually refers to a company which does not produce goods or services itself; rather, its purpose is to own shares of other companies. Holding companies allow the reduction of risk for the owners and can allow...
formed by the Vans. They were at first only interested in the line to provide a right-of-way
Right-of-way (railroad)
A right-of-way is a strip of land that is granted, through an easement or other mechanism, for transportation purposes, such as for a trail, driveway, rail line or highway. A right-of-way is reserved for the purposes of maintenance or expansion of existing services with the right-of-way...
for their Shaker Heights Rapid Transit to downtown.
By 1920 the Vans had decided they wanted control of other railroads, including the Lehigh Valley Railroad
Lehigh Valley Railroad
The Lehigh Valley Railroad was one of a number of railroads built in the northeastern United States primarily to haul anthracite coal.It was authorized April 21, 1846 in the U.S. state of Pennsylvania and incorporated September 20, 1847 as the Delaware, Lehigh, Schuylkill and Susquehanna Railroad...
, Delaware, Lackawanna and Western Railroad
Delaware, Lackawanna and Western Railroad
The Delaware, Lackawanna and Western Railroad Company was a railroad connecting Pennsylvania's Lackawanna Valley, rich in anthracite coal, to Hoboken, New Jersey, , Buffalo and Oswego, New York...
, Western Maryland Railway
Western Maryland Railway
The Western Maryland Railway was an American Class I railroad which operated in Maryland, West Virginia, and Pennsylvania. It was primarily a coal hauling and freight railroad, with a small passenger train operation. The WM became part of the Chessie System in 1973 and ceased operating its lines...
, Wheeling and Lake Erie Railway
Wheeling and Lake Erie Railway (1916-1988)
The Wheeling and Lake Erie Railway was a Class I railroad mostly within the U.S. state of Ohio. It was leased to the New York, Chicago and St. Louis Railroad in 1949, and merged into the Norfolk and Western Railway in 1988...
, Pittsburgh and West Virginia Railway
Pittsburgh and West Virginia Railway
The Pittsburgh and West Virginia Railway was a railroad in the Pittsburgh, Pennsylvania and Wheeling, West Virginia areas. Originally built as the Wabash Pittsburgh Terminal Railway, a Pittsburgh extension of George J. Gould's Wabash Railroad, the venture entered receivership in 1908 and the line...
, Pere Marquette Railway
Pere Marquette Railway
The Pere Marquette Railway was a railroad that operated in the Great Lakes region of the United States and Canada. The railroad had trackage in the states of Michigan, Ohio, Indiana and the Canadian province of Ontario. Its primary connections included Buffalo; Toledo; and Chicago.The company was...
, Cincinnati Northern Railroad
Cincinnati Northern Railroad (1894-1938)
The Cincinnati Northern Railroad was a railroad that stretched from Franklin, Ohio north to Jackson, Michigan, a distance of about . It was acquired by the Cleveland, Cincinnati, Chicago and St. Louis Railway in 1901 and the New York Central Railroad several years later...
and Toledo, St. Louis and Western Railroad
Toledo, St. Louis and Western Railroad
The Toledo, St. Louis and Western Railroad, often abbreviated TStL&W and commonly known as the Clover Leaf, was a railroad company that operated in northwestern Ohio, north central Indiana, and south central Illinois during the late 19th and early 20th centuries.-History:The TStL&W originated with...
(Clover Leaf), as well as partial ownership in the Lake Erie and Western Railroad
Lake Erie and Western Railroad
The Lake Erie and Western Railroad was a railroad that operated in Ohio, Indiana and Illinois.-The beginning:The Seney Syndicate linked several short railroads in Ohio, Indiana, and Illinois to form the Lake Erie and Western Railroad in 1879 and 1880...
and Philadelphia and Reading Railway.
The Vaness Company was incorporated in Delaware on January 9, 1922 as a holding company
Holding company
A holding company is a company or firm that owns other companies' outstanding stock. It usually refers to a company which does not produce goods or services itself; rather, its purpose is to own shares of other companies. Holding companies allow the reduction of risk for the owners and can allow...
to own all the other holding companies. The Clover Leaf Company was incorporated February 25 to own the Toledo, St. Louis and Western Railroad
Toledo, St. Louis and Western Railroad
The Toledo, St. Louis and Western Railroad, often abbreviated TStL&W and commonly known as the Clover Leaf, was a railroad company that operated in northwestern Ohio, north central Indiana, and south central Illinois during the late 19th and early 20th centuries.-History:The TStL&W originated with...
, and the Western Company March 11 for the Lake Erie and Western Railroad
Lake Erie and Western Railroad
The Lake Erie and Western Railroad was a railroad that operated in Ohio, Indiana and Illinois.-The beginning:The Seney Syndicate linked several short railroads in Ohio, Indiana, and Illinois to form the Lake Erie and Western Railroad in 1879 and 1880...
. The LE&W was bought for $3 million from the New York Central Railroad
New York Central Railroad
The New York Central Railroad , known simply as the New York Central in its publicity, was a railroad operating in the Northeastern United States...
on April 26. On July 1, 1923 and LE&W and Clover Leaf were merged into the Nickel Plate.
For the next several years, the Vans bought up the stock of the Chesapeake and Ohio Railway
Chesapeake and Ohio Railway
The Chesapeake and Ohio Railway was a Class I railroad formed in 1869 in Virginia from several smaller Virginia railroads begun in the 19th century. Led by industrialist Collis P...
(including its Hocking Valley Railway
Hocking Valley Railway
The Hocking Valley Railway was a railroad in the U.S. state of Ohio, with a main line from Toledo to Athens and Pomeroy via Columbus. It also had several branches to the coal mines of the Hocking Valley near Athens...
), the Pere Marquette Railway
Pere Marquette Railway
The Pere Marquette Railway was a railroad that operated in the Great Lakes region of the United States and Canada. The railroad had trackage in the states of Michigan, Ohio, Indiana and the Canadian province of Ontario. Its primary connections included Buffalo; Toledo; and Chicago.The company was...
and the Erie Railroad
Erie Railroad
The Erie Railroad was a railroad that operated in New York State, New Jersey, Pennsylvania, Ohio, Indiana, and Illinois, originally connecting New York City with Lake Erie...
. On August 20, 1924 they announced plans to merge the four companies into the New York, Chicago and St. Louis Railroad
New York, Chicago and St. Louis Railroad
The New York, Chicago and St. Louis Railroad , abbreviated NYC&St.L, was a railroad that operated in the mid-central United States. Commonly referred to as the Nickel Plate Road, the railroad served a large area, including trackage in the states of New York, Pennsylvania, Ohio, Indiana, and Illinois...
(Nickel Plate) to form a new New York, Chicago and St. Louis Railway. They applied to the Interstate Commerce Commission
Interstate Commerce Commission
The Interstate Commerce Commission was a regulatory body in the United States created by the Interstate Commerce Act of 1887. The agency's original purpose was to regulate railroads to ensure fair rates, to eliminate rate discrimination, and to regulate other aspects of common carriers, including...
on February 21, 1925, but were denied March 2, 1926 due to unsound financing. The plan was opposed by many C&O stockholders.
On February 3, 1927 the Vans, along with the New York Central Railroad
New York Central Railroad
The New York Central Railroad , known simply as the New York Central in its publicity, was a railroad operating in the Northeastern United States...
and Baltimore and Ohio Railroad
Baltimore and Ohio Railroad
The Baltimore and Ohio Railroad was one of the oldest railroads in the United States and the first common carrier railroad. It came into being mostly because the city of Baltimore wanted to compete with the newly constructed Erie Canal and another canal being proposed by Pennsylvania, which...
, bought the Wheeling and Lake Erie Railway
Wheeling and Lake Erie Railway (1916-1988)
The Wheeling and Lake Erie Railway was a Class I railroad mostly within the U.S. state of Ohio. It was leased to the New York, Chicago and St. Louis Railroad in 1949, and merged into the Norfolk and Western Railway in 1988...
. Four days later the Vans announced that they would make the C&O the centerpiece of their system, selling the Erie and Pere Marquette to them.
The Alleghany Corporation was incorporated January 26, 1929 in Maryland
Maryland
Maryland is a U.S. state located in the Mid Atlantic region of the United States, bordering Virginia, West Virginia, and the District of Columbia to its south and west; Pennsylvania to its north; and Delaware to its east...
to hold the Vans' stock in the Nickel Plate, Chesapeake Corporation, Erie and C&O, as well as a partial ownership of the Buffalo, Rochester and Pittsburgh Railway
Buffalo, Rochester and Pittsburgh Railway
The Buffalo, Rochester and Pittsburgh Railway was one of the more than ten thousand railroad companies founded in North America, most of which came and went. It lasted much longer than most, serving communities from the shore of Lake Ontario to the center of western Pennsylvania.One of the minor...
(traded to the Baltimore and Ohio Railroad
Baltimore and Ohio Railroad
The Baltimore and Ohio Railroad was one of the oldest railroads in the United States and the first common carrier railroad. It came into being mostly because the city of Baltimore wanted to compete with the newly constructed Erie Canal and another canal being proposed by Pennsylvania, which...
in March for the B&O's part of the W≤ the Vans acquired the rest of it from the NYC at the same time). In April 1930 the Alleghany Corporation bought the Chicago and Eastern Illinois Railroad
Chicago and Eastern Illinois Railroad
The Chicago and Eastern Illinois Railroad was a Class I railroad that linked Chicago to southern Illinois, St. Louis, and Evansville. Founded in 1877, it grew aggressively and stayed relatively strong throughout the Great Depression and two World Wars before being purchased by the Missouri Pacific...
and 46% of the Missouri Pacific Railroad
Missouri Pacific Railroad
The Missouri Pacific Railroad , also known as the MoPac, was one of the first railroads in the United States west of the Mississippi River. MoPac was a Class I railroad growing from dozens of predecessors and mergers, including the St. Louis, Iron Mountain and Southern Railway , Texas and Pacific...
, gaining a majority of the MoPac on May 13. The Hocking Valley Railway
Hocking Valley Railway
The Hocking Valley Railway was a railroad in the U.S. state of Ohio, with a main line from Toledo to Athens and Pomeroy via Columbus. It also had several branches to the coal mines of the Hocking Valley near Athens...
merged into the C&O April 30, 1930.
Due to the Great Depression
Great Depression
The Great Depression was a severe worldwide economic depression in the decade preceding World War II. The timing of the Great Depression varied across nations, but in most countries it started in about 1929 and lasted until the late 1930s or early 1940s...
, the planned "Fourth System" failed. The new Midamerica Company bought most of the old assets on September 30, 1935 in an attempt to reorganize.
The Pere Marquette Railway
Pere Marquette Railway
The Pere Marquette Railway was a railroad that operated in the Great Lakes region of the United States and Canada. The railroad had trackage in the states of Michigan, Ohio, Indiana and the Canadian province of Ontario. Its primary connections included Buffalo; Toledo; and Chicago.The company was...
merged into the Chesapeake and Ohio Railway
Chesapeake and Ohio Railway
The Chesapeake and Ohio Railway was a Class I railroad formed in 1869 in Virginia from several smaller Virginia railroads begun in the 19th century. Led by industrialist Collis P...
on June 6, 1947. The Nickel Plate leased the Wheeling and Lake Erie Railway
Wheeling and Lake Erie Railway (1916-1988)
The Wheeling and Lake Erie Railway was a Class I railroad mostly within the U.S. state of Ohio. It was leased to the New York, Chicago and St. Louis Railroad in 1949, and merged into the Norfolk and Western Railway in 1988...
on December 1, 1949, and on October 16, 1964 the Nickel Plate was merged into the Norfolk and Western Railway
Norfolk and Western Railway
The Norfolk and Western Railway , a US class I railroad, was formed by more than 200 railroad mergers between 1838 and 1982. It had headquarters in Roanoke, Virginia for most of its 150 year existence....
. The Erie merged into the Erie-Lackawanna Railroad on October 17, 1960. This left three pieces of the old system - part of the N&W, part of the EL, and the C&O. On August 31, 1965 the N&W and C&O announced a planned merger, with a holding company
Holding company
A holding company is a company or firm that owns other companies' outstanding stock. It usually refers to a company which does not produce goods or services itself; rather, its purpose is to own shares of other companies. Holding companies allow the reduction of risk for the owners and can allow...
named Dereco to own the EL and several other lines. Dereco was incorporated March 1, 1968, acquiring the EL April 1. But the planned merger never happened. The C&O has since become part of CSX Transportation
CSX Transportation
CSX Transportation operates a Class I railroad in the United States known as the CSX Railroad. It is the main subsidiary of the CSX Corporation. The company is headquartered in Jacksonville, Florida, and owns approximately 21,000 route miles...
, the N&W part of the Norfolk Southern Railway
Norfolk Southern Railway
The Norfolk Southern Railway is a Class I railroad in the United States, owned by the Norfolk Southern Corporation. With headquarters in Norfolk, Virginia, the company operates 21,500 route miles in 22 eastern states, the District of Columbia and the province of Ontario, Canada...
, and the EL part of Conrail, split between CSX and NS in 1998 (at which time most of the former Erie went to NS).