Fort Wayne And Southern Railroad

When one looks at a railroad map of Indiana, especially ones like one of my favorites for this subject like this from 1898 (Railroad map of Indiana. | Library of Congress (loc.gov)), it is easy to see that the numerous railroad companies sprang up independently to connect the towns of Indiana. Unfortunately, the truth is never quite that simple. Today, I want to look at a railroad that had goals of being a rather long route, but ended up being bits and pieces of other larger companies: the Fort Wayne & Southern Railroad.

The mid-1800’s were a railroad building boom in the state of Indiana. Many companies were chartered to put down rails across the state. Some of these never came to be in their original form. Others were influenced by eastern companies with loans and bond purchases to allow construction. In a special act of 15 January 1846, the Indiana General Assembly chartered a railroad company that was to connect Fort Wayne to the Ohio River at Jeffersonville. Over the years, this would be a link in the railroad system that would make Fort Wayne a major railroad hub in northern Indiana.

Construction started slowly on the route. The plan was to build the road from Fort Wayne, through Bluffton, Hartford City, Muncie, New Castle, Rushville, Greensburg, Vernon and Charleston to finally end at Jeffersonville. The plan sounded rather extravagant, but it made sense in the grand scheme of things. Jeffersonville, being near the Falls of the Ohio, was a natural breakpoint in traffic transiting the Ohio River from Pittsburgh to the Mississippi. Ohio River traffic, at the time, had to stop at Jeffersonville, New Albany and Louisville to change from one barge to another. Building a railroad from the Falls of the Ohio to Fort Wayne allowed, it was thought, to funnel freight into Indiana’s second largest city. Ultimately, this, along with connections to Fort Wayne from Lake Michigan, Lake Erie, and points east (like Pittsburgh), would open the markets of the city, and towns along the railroads, to the entire nation.

Grading was started at two different places on the planned Fort Wayne & Southern. First, a route between Fort Wayne and Muncie. Second, the road was graded between Vernon and Jeffersonville. No rail had been put down on either of these sections. The company floundered as it tried to find funding for construction.

The question that comes up is, what happened to the company? No map ever showed a single company route that connected Fort Wayne and Jeffersonville, although such a route existed through the use of three different companies.

The Fort Wayne & Southern, like many railroads in Indiana, fell into receivership. The company found itself in a situation where they were still spending money on a route that wasn’t completed, in any section, enough to allow traffic to offset the losses. The entire route was sold at foreclosure on 19 January, 1866. But that sale was set aside, and the company continued to flounder until the route was conveyed to new owners on 7 November 1868.

But unlike other railroad companies in Indiana at the time, the Fort Wayne & Southern was broken into two different sections when it changed hands.

The section from Fort Wayne to Muncie, and then further to Rushville, would become a new railroad company, the Fort Wayne, Muncie & Cincinnati Railway. In June 1869, the former Fort Wayne & Southern between Muncie and Fort Wayne would merge with the Cincinnati, Connersville & Muncie to create the Fort Wayne, Muncie & Cincinnati Railroad Company. With the addition of rails to the route, this would connect Fort Wayne to Connersville. The FtWM&C Railway did not complete any construction before the merger with the CC&M. The railroad would open nearly 64 miles of track from Muncie to Fort Wayne in 1870.

The southern section, 53 miles of graded roadbed from Vernon to Jeffersonville, was conveyed to the Ohio & Mississippi Railway Company. That company was a consolidation of several companies that would build a railroad from St. Louis, Missouri, to Cincinnati, Ohio. This would create a branch to connect the company to another point on the Ohio River.

The complete route, from Fort Wayne to Jeffersonville, would ultimately be built…but not by one company. The 16 mile section from New Castle to Muncie would be opened in 1868 under the title Cincinnati, Connersville & Muncie Railroad. The next section, from New Castle to Rushville, would be completed in 1881 by the New Castle & Rushville Railroad. This route was 24 miles in length.

Another company that came into existence in 1879 would be the Vernon, Greensburg and Rushville. It would connect the title towns with rails opening in 1881.

All of the above would complete the original plan of the Fort Wayne & Southern. It would ultimately fall into three major railroad company systems. For a while, the section from Rushville to Fort Wayne would fall under the control of the New York Central system as the Lake Erie & Western, and later, the Nickel Plate. This would end when the New York Central sold its interest in that road. The Vernon, Greensburg & Rushville would be leased by what would become the Big Four Railway. The Big Four would later replace the Nickel Plate in the New York Central system.

The Ohio & Mississippi, after several consolidations, would become a leased company called the Baltimore & Ohio Southwestern Railroad. Although still legally a separate entity, in 1925 the management of the B&OSW was replaced by management of the Baltimore & Ohio.

Today, the entire route can be seen in the Hoosier landscape. The Baltimore & Ohio section would be abandoned piecemeal in the 1980s. 28 miles from North Vernon to Nabb was abandoned in 1980, and from Nabb to Charleston following in 1985. Two very short sections in Charleston were abandoned in 2000 and 2001.

The ultimate owners of the Nickel Plate, the Norfolk & Western, would attempt to abandon what was called the New Castle branch from New Castle to Rushville. Since it was withdrawn, there is no date of that attempt in my source. Ultimately, this would happen, however.

Parts of the route that was to be covered by the Fort Wayne & Southern are still in use today as parts of the Norfolk Southern and CSX. A map is available at the Library of Congress for the railroad at A section of Colton’s large map of Indiana with the Fort Wayne and Southern Rail Road marked upon it, as located also a map of the United States showing Road and its connections together with a profile of the Ohio river and lands adjoining and a section of the double track rail road tunnel under the Ohio river at Louisville, Kentucky & Jeffersonville, Indiana for the year 1855 ending Oct. 1, W. J. Holman, President and Chief Engr. | Library of Congress.

Indiana Vs. Terre Haute and Indianapolis Railroad

In 1899, the state of Indiana brought forth a lawsuit against the Terre Haute & Indianapolis Railroad for tax money due for the school fund. It started with a charter. In the early days of Indiana, to create a railroad company (and basically any company, as far as that goes), a charter for the company and its goals would have to be written and taken before the Indiana General Assembly for approval. I would love to say that these things were basically rubber stamped…but I truly have no way of knowing without extensive research.

The Terre Haute & Indianapolis Railroad was issued it original charter by the Indiana General Assembly in 1831. The name on the charter was the Terre Haute & Indianapolis. The TH&I was then issued a special charter as the Terre Haute & Richmond Rail Road on 24 January 1847. The company was to build a railroad between the two title cities, through Indianapolis. The official name of the company had changed twice between the special charter of 1847 and the court case of 1899. First, in 1850, the space was taken out between rail and road, making it the Terre Haute & Richmond Railroad legally. Then, in 1865, the name was changed to suit the actual extent of the railroad company. It became the Terre Haute & Indianapolis Railroad Company.

Newspapers of the time often refer to the legal action against the Terre Haute & Indianapolis as the Vandalia Case. By the time of the legal action, the TH&I was already leasing the St. Louis, Vandalia & Terre Haute, the only line (for a while) connecting Indianapolis to St. Louis. The St. Louis, Vandalia & Terre Haute was known most of the time as the Vandalia. The Vandalia was in financial trouble while under construction. Money was floated from five railroad companies to complete the route in 1870: Terre Haute & Indianapolis, Pennsylvania, Panhandle, Steubenville and the Indiana Central. The last three being consolidated later into the Pittsburgh, Cincinnati, Chicago & St. Louis Railway, also nicknamed the Panhandle. The Pennsylvania would gain control of the Panhandle and the Vandalia…although the Terre Haute & Indianapolis would fight it the entire way.

The whole case stemmed from how the charter for the TH&I was read, and who was doing the reading. The State of Indiana was of the opinion that the TH&I owed the School Fund somewhere between $1.2 and $2 million dollars. Obviously, the TH&I was of the opposite opinion. The entire case stemmed from a special charter that had been issued for the company in 1847, give or take a year. The new charter, keeping a provision from the old one, would allow the railroad to set its own passenger and freight rates, and allow for a 15% profit to be split among its shareholders after all of the construction bills have been paid.

The state, in its case, claimed that the TH&I was setting its rates to a point where it was earning 18% to 35% profits. Since the limit was 15%, the rest, the state continued, would be required to be paid to the state school fund. Vandalia saw things differently.

The South Bend Tribune of 4 October 1899 describes the beginning of the case as such: “Noble C. Butler, as master in chancery, began taking testimony, Monday afternoon (2 October 1899), in the case of the state against the Vandalia railroad for money due the school fund on account of the special charter under which the road operated 20 years ago.”

“Experts have been examining the company’s books to ascertain the exact earnings and the proportionate amount due the state, and their testimony is expected to be interesting. About $2,000,000 is claimed to be due the school fund from the railroad.” (Source: South Bend Tribune, 4 October 1899, pp 1 via newspapers.com.)

When the time came to defend itself, the Vandalia brought out John G. Williams, a man, according to the Indianapolis News of 17 January 1900, “who is said to know more about the affairs of the road than any other man.” Attorney Williams started talking about the charter of the Terre Haute & Richmond, the charters of other railroads, and the fact that when the original charters were written for the early railroads, the company had a choice between building a railroad and building a toll road. The state saw no real difference between the two.

He also mentioned that, according to the News, “one of the first roads built in the State was the Baltimore & Ohio. In the beginning, its cars were moved by horses and, when the wind was favorable, sails were hoisted on the cars to help propel them.” I would be that the News meant in the United States, as the Baltimore & Ohio wouldn’t have been in Indiana in 1831.

Reference is also made by the attorney for the railroad that in the beginning, the B&O charged 4 cents a ton a mile for moving of freight. “Modern railroads” (1900) are lucky to get one half cent per ton/mile. And passengers were actually weighed and charged essentially a pro-rated charge of 4 cents per ton/mile. If I am reading this right, since I weigh 200 pounds, it would cost me eight cents to travel by train from Indianapolis to Greenfield in those days. If I lived then…and the train actually was built to connect the two.

Mr. Williams went on to argue that the ability to regulate tolls by the state was left out of the charters of seven of the eight railroads that were incorporated in 1832. All eight of these charters allowed for the company to build a railroad or turnpike. Also in 1832, a company applied for a charter to build a bridge across the Ohio River at the Falls, the location of New Albany and/or Jeffersonville, and Louisville on the Kentucky side.

In 1832, five more railroads were incorporated, including the Evansville & Lafayette. It, like the Terre Haute & Indianapolis (1831 charter), had a clause stating that the State of Indiana could purchase the road after a certain period. Very few railroad company charters included the state regulation of the amount of dividends to its shareholders.

Ultimately, the Vandalia won the original case. Special Master Butler determined that the state was owed nothing by the Vandalia. The State appealed to the Superior Court, in which it was determined that the Vandalia owed the state of Indiana $913,000.

According to the Indianapolis Journal of 18 June 1902, as the case was being brought before the Indiana Supreme Court, “the charter provided that the company should pay the State its surplus earnings over the operating expenses and 10 per cent to the stockholders. The company surrendered its special charter in 1873 and has since operated under the general railroad law.” The company claimed that the surplus money was spent to improve the road, and there was no money left to pay the state.

The case before the Indiana Supreme Court lasted three days, ending on 19 June 1902. When the ruling went against the Vandalia, the Pennsylvania Railroad announced that they would appeal the decision to the United States Supreme Court. That decision was made on 28 November 1902.

The Indiana Supreme Court judgement ruled that the Vandalia must pay $913,905, and a six percent interest from the date of the Superior Court judgement. This brought to total to $1,028,143. Of course, the state was to only receive $771,107 of that, with the rest going to attorney’s fees. The Vandalia would fall into receivership after the ruling, and arguments between Illinois and Indiana receivers would follow.

31 May 1904, and the United States Supreme Court ruled, after much deliberation, that the Vandalia Railroad owed a grand total of nothing to the state of Indiana School Fund. This would go on to allow the Vandalia to consolidate the following railroads into one corporate entity: Terre Haute & Indianapolis, Indianapolis & Vincennes, Logansport & Toledo, Terre Haute & Logansport, and the St. Louis, Vandalia & Terre Haute. A consolidation which created the Vandalia Railroad Company on 1 January 1905.

Dec 1917: Main Market Roads Officially Announced

When the law creating the Indiana State Highway Commission was passed in early 1917, the announcement was also made that there were would five main market highways, later known as state roads, designated by that commission. There was a general idea of which roads would be involved, bot nothing set in stone. That is, until December 1917.

The Fort Wayne Journal-Gazette of 12 December 1917 announced the selection of the new main market highways. ISHC officials traveled throughout the state deciding which roads would be part of the new, and yet controversial, system. “A former election of four of the five routes was tentative, and although the general directions of the four roads announced formerly have been adhered to in the official selection, many changes have been made.”

The plan was to create a system which was typical of Indiana’s general demeanor: serve as many people as possible with as little cost and intrusion as possible. Due to the shape of the state of Indiana, it was decided that there would be three roads crossing the state, west to east, from the Illinois state line to the Ohio state line. One north-south road would be designated through the middle of the state. This was the basis of the first four main market roads. A fifth road would connect the fourth road to the Illinois state line in the southern part of the state. The December 1917 system included roughly 800 miles of roads.

The main market highways were officially described as follows: “No. 1. The highway beginning at the Indiana and Michigan state line, thence southerly through South Bend, Plymouth, Rochester, Peru, Kokomo, Westfield, Carmel, Indianapolis, Franklin, Columbus, Seymour, Scottsburg, Sellersburg, New Albany and Jeffersonville.” In the Auto Trail era, there was no one highway this route followed. It seems that it was planned very early to have a split in the highway at the south end, with one branch going to New Albany, and one going to Jeffersonville. And although the route numbers have changed, that split has existed in one form or another since that time.

Main Market Road #2: “The highway passing through the northern part of the state, beginning, at the Illinois and Indiana state line, thence easterly through Dyer, Valparaiso, Laporte, South Bend, Goshen and Fort Wayne via the Lincoln Highway to the Ohio and Indiana state line.” Depending on how one reads that, it could be that the Lincoln Highway was only used from Fort Wayne to the Ohio state line. This is far from true. It was decided that the entire original route of the Lincoln Highway through the state would be used for Road #2.

Main Market Road #3: “The highway crossing the central part of the state, commonly called the old national road trail, beginning at the corner of the Illinois and Indiana state line, thence easterly through Terre Haute, Brazil, Putnamville, Plainfield, Indianapolis, Greenfield, Knightstown, Cambridge City and Richmond to the Ohio and Indiana state line.”

Main Market Road #4: “The road crossing the southern part of the state, beginning at Evansville, thence easterly through Boonville, Huntingburg, Jasper, West Baden, Paoli, Mitchell, Bedford, Seymour, North Vernon, Versailles, Dillsboro, Aurora and Lawrenceburg to the Ohio and Indiana state line.”

Main Market Road #5: “The road connecting Vincennes and Mitchell, via Wheatland, Washington, Loogootee and Shoals.” Basically, this road was designated to connect main market road 4 to Vincennes. Again, this is due to the shape of the state. A (more or less) straight line across Indiana from Cincinnati west would, as is shown by the route of the current US 50, connect to Vincennes, leaving people south of there without a main market road. Evansville was, and still is, one of the top five largest cities in the state, population wise. So ignoring that city would not have been possible.

The article ends with the following: “The total mileage of the roads represents less than one-half of the total 2,000 miles of ‘main market highways’ which the commission may designate under the new state highway commission law prior to 1921.” The law that passed in 1917 created a state highway system so that Indiana could benefit from federal money for good roads. It wasn’t until the law was redone in 1919, with all of the 1917 law’s Constitutional questions answered, that the Indiana State Highway System was officially made part of the landscape.

Flooded Indiana

Weather in Indiana. Anyone that has been in the state at this time of year knows that we are entering what best can be described as the rainy season. With it comes the almost annual flooding that will inevitably occur. Flooding is something, though, that can happen at any time of the year. January is notorious for it. Though, it is not as though the flooding is a new thing. It has happened in Indiana for as long as there has been a state of Indiana. And possibly long before. Some of the floods make massive changes to the landscape of the state. Some just get a shrug of shoulders and a shake of the head.

One of the most changing floods in the modern history of Indiana has to be that of 1913. One of the most famous (road) victims of that flood had to be the Washington Street bridge in downtown Indianapolis. But the entire state was punished that January 1913. New Albany, at the Falls of The Ohio (a natural low water point in the entire river channel) almost everything south of the Southern Railroad and Pennsylvania Railroad tracks was under water. The Pennsylvania Railroad ordered that its freight house in New Albany be abandoned. Said freight house had been under five feet of water in floods of 1907. In Evansville, the Ohio Street bridge (I would assume over Pigeon Creek) is “paritally submerged by water,” according to the Evansville Press of 15 January 1913. Especially hard hit were towns along the Ohio River. Several of these would be partly wiped out. Some would be moved to higher ground.

The flood that changed Indiana the most was that of 1937. The area had been devastated by floods in 1936…but the winter of 1937 was more damaging. January 1937 saw the massive closing of state roads due to ice and flooding. The list that was published in newspapers on 23 January 1937 included large numbers of roads. Just the US Highways listed included: US 31 north and south of Seymour, south of Memphis, at Speeds and north of New Albany; US 31E north of junction with SR 231 and junction SR 62; US 41 at Hazelton and Patoka; US 50 west of Brownstown, from Lawrenceburg to Aurora, west of Washington; US 52 from Brookville to West Harrison; US 150 west of Palmyra, at Fredricksburg, at Prospect, and east of Shoals. The list of closed highway is roughly 12 column inches long in the Richmond Item of 23 January 1937. The same newspaper mentions that the only road open from Richmond to Cincinnati is US 127 through Eaton, Ohio.

The aftermath of the 1937 floods would change the landscape across the state quite a bit. In addition to plans for 13 new reservoirs (many of which would not be built), levee and bridge construction would be commenced throughout the state. It was noted that many of the city street bridges at Indianapolis were too short to be safe in case of a flood rivaling or beating that of 1913. Improvements would be planned, and budgeted, for the Warfleigh section of Indianapolis, the Fall Creek area of Indianapolis, sections of the Wabash River in Peru and Logansport, and the White River at Anderson and Muncie.

There are additional reports of flooded state roads and such from many years between 1927 and 1950. January 1932 reported that three sections of SR 37 between Bloomington and Bedford have been damaged by rock slides caused by the same rain that had that part of SR 67 between Romona and Gosport, and at Edwardsport, under water. More flooding reports appear in March 1925, March 1927, November 1927, January 1930, March 1933, May 1935, August 1938, February 1942 and April 1948. This is just a quick look at the available newspaper data.