Start Your Aircraft Engines!: Aviation Accomplishments in Speedway During World War II

Note: For those interested in learning more about aviation in the Speedway area during World War I, see “Speedway: An Aviation Hub During World War I.”

This weekend, some 300,000 fans are expected to descend upon the Town of Speedway to watch the 102nd running of the Indianapolis 500. The Speedway area has been home to the “Greatest Spectacle in Racing” since 1911. The race attracted drivers and fans from all over the world. It has only been cancelled on two occasions: during World War I (1917-1918) and World War II (1942-1945). While there was no roar of race cars, the area was by no means quiet. Instead, the Speedway area became a hub for wartime production, with aircraft engines taking center stage.

James A. Allison, photo courtesy of Allison Transmission: History and Heritage.

Entrepreneur and Indianapolis Motor Speedway co-founder James Allison quite literally shifted gears when he devoted his precision machine shop’s resources on Main Street, just south of the track, to the war effort in 1917. Allison originally built the shop to redesign and rebuild foreign and domestic racecars. By mid-1918, the War Department awarded government contracts to Allison Experimental Company to build parts for the Liberty aircraft engine. According to the National Museum of the United States Air Force, the Liberty represented “America’s major technological contribution to World War I.” The United States’ auto industry produced over 20,000 of these engines during the war and Allison’s Speedway company played its part in this endeavor. The Speedway area also saw the development of an aviation repair depot where workers helped repair, modify, and test hundreds of airplanes and aircraft engines.

Allison Engineering Company Main Street Building and Employees, 1921, photo courtesy of Indiana Memory.

Just one month after the war’s end, in December 1918, the owners of the Indianapolis Motor Speedway announced that the Indianapolis 500 would resume in May 1919. The focus in the Speedway area quickly shifted back to automobiles and racing, but interest in aviation there had just begun. During the 1920s, Allison Experimental Company (Allison Engineering Company by 1921) worked on rebuilding and inverting Liberty engines.

Liberty 12-A Inverted Engine on display at the National Museum of the United States Air Force.

Following James Allison’s death in 1928, General Motors Corp. filed an appropriation request to buy the company the following year. According to the request, General Motors planned to continue Allison’s work in the aviation industry. The Indianapolis Chamber of Commerce promoted the acquisition, stating that with General Motors’ purchase of the company:

Development of this city as a center for the nation’s aviation industry seems assured.

General Motors Corporation Appropriation Request to Purchase Allison Engineering Company. Courtesy of Rolls Royce Heritage Trust – Allison Branch Archival Collection.

The Chamber of Commerce was not far off the mark. During the 1930s, Allison Engineering Co. focused its efforts on developing a 1,000 horsepower liquid-cooled aircraft engine in the Speedway area. Known as the V-1710, it would become the primary engine that powered Allied fighter aircraft during World War II. Norman Gilman, chief engineer and general manager for the company, reasoned that a liquid-cooled engine could be placed inside the fuselage, where a radial type engine could not and therefore developed high wind resistance or drag, particularly at higher speeds. Despite initial hesitation from both the U.S. Navy and U.S. Army, the Navy placed an order with Allison Engineering Co. for a liquid-cooled airplane engine of 750 horsepower in June 1930. The company designed, built, and delivered this engine to the Navy in March 1932. After completing a 50-hour development test, the Navy accepted the engine in September of that year. The Army Air Corps followed suit and soon after placed an order for the engine with the company.

Throughout the mid-1930s, Allison Engineering Co. worked to improve the engine, with the goal of making it 1,000 horsepower. After several tests and improvements to the design, the company delivered the engine to the Army Air Corps at Wright Field in Dayton, Ohio in March 1937. One month later, the V-1710 passed the 150-hour acceptance test.

AllisoNews, March 31, 1942, vol. 1, no. 18, photo courtesy IUPUI Digital Collections, Allison Transmission.

By 1939, as war clouds gathered over Europe, Allison Engineering (renamed Allison Division of General Motors in January 1941) committed itself to mass production of the V-1710 aircraft engine in Speedway. At the time, Allison employed 600 people, but this number grew exponentially as orders for the V-1710 came pouring in. In April 1939, newspapers reported that the company would soon triple its facilities with construction of a new plant that would span 200,000 sq. ft. By the end of the year, employment figures had almost doubled to 1,200. Allison Division constructed additional plants in Speedway and the Indianapolis area throughout the war years and with these plants came thousands of additional employees.

V-1710 engine, photo courtesy Allison Transmission: History and Heritage.

Demand for the V-1710 engine made Allison Division one of the three principal manufacturers of aircraft engines in the country during the war, alongside Pratt & Whitney and Wright Aeronautical. In January 1941, Life magazine ran a feature on the engine, highlighting it as the “plane motor on which the Army puts its biggest bet.” By July 1941, the War Department awarded Allison a new contract for the engines. With this contract, total orders for Allison engines since the beginning of the defense emergency program totaled approximately $242,000,000.

America has bet heavily on the Allison engine in its aircraft defense plans, just as the war industries board in 1917 bet everything on the Liberty engine . . . the Allison engine has been delivering regularly for the R.A.F. [Royal Air Force]. Allison is now producing 400 aviation engines a month, where a year ago it was delivering only 150, and expects to approach 1,000 engines a month by the end of 1941. – “More Air Power,” Mason City [Iowa] Globe Gazette, August 13, 1941, 4.

Curtiss P-40, photo courtesy AllisoNews, July 18, 1941, 4.,

Orders and output for the V-1710 engine continued to grow, particularly after the Japanese attack on Pearl Harbor in December 1941. By this point, employment at Allison Division surpassed 12,000. It swelled to 23,019 in October 1943. The company’s growth impacted the Town of Speedway as well. As early as 1940, Indianapolis newspapers commented on Speedway’s growing pains, reporting that officials from the town were seeking state aid to address problems that had come about from the influx of workers to the plants. These problems included the need to improve streets, sanitary conditions, and the need for a better water system. The Indianapolis Times noted that with more employees at the Allison plants came “more money, more home buying, more eating, etc.” School enrollment in the area doubled, church attendance rose greatly, and many new homes were built.

Bell Airacobra P-39, photo courtesy AllisoNews, August 1, 1941, 6.

Meanwhile, Allison Division continued to impress. By March 1944, it built and delivered its 50,000th liquid-cooled engine. By the war’s end, the total figure reached 70,000. These engines powered many of the United States’ fighter planes during the war, including the P-38 Lightning, the P-39 Airacobra, and the P-40 Warhawk. The engine was also used in several fighter planes flown by the Royal Air Force of the United Kingdom.

Lockheed P-38, photo courtesy AllisoNews, August 15, 1941, 4.
Program for the Presentation of the Army-Navy Production Award to Allison Division, General Motors Corporation, November 5, 1942.

Allison Division received high praise for the fine precision, workmanship, and durability of the V-1710. It won the Army-Navy “E” Award for excellence in production four times during the war: in October 1942, March 1944, October 1944, and June 1945. By the spring of 1945, Allison Division reduced production schedules of the V-1710 to focus more of its time on building jet engines, which could power planes at much higher speeds. The U.S Army Air Forces had awarded Allison a contract for the production of jet propulsion units in the fall of 1944. The Navy followed the Army’s lead and placed their own order with Allison in the summer of 1945, citing Allison’s “well established reputation for delivering the goods on time.” This reputation would continue through the end of the war in August 1945 and through the post-war years.

As had happened following the conclusion of World War I, racing returned to the Speedway area in 1946 to much fanfare. Left abandoned for nearly five years, the Indianapolis Motor Speedway had fallen into disrepair during World War II. Tony Hulman purchased the track in November 1945 and worked to restore it in preparation for the May 1946 500-mile race. Fans came in droves to witness the 30th running of the Indianapolis 500 that year, as racing returned to center stage in the Speedway area.

AllisoNews, March 1944, 1, accessed IUPUI Digital Collections, Allison Transmission.

Allison’s work in Speedway and its commitment to technological advancements did not end with World War II, but rather continues through today. In addition to continuing its investment and development in the aviation industry following the war, Allison also organized a new department for the design and development of transmissions. The transmissions were manufactured for commercial and military use, with many powering tanks during the Korean War. Their production ushered in a new chapter in the company’s history. Today, James Allison’s experimental company in Speedway , now known around the globe as Allison Transmission, is one of the world’s largest manufacturers of fully automatic transmissions.

Speedway: An Aviation Hub During World War I

Speedway’s aviation repair depot was bordered by Main St. on the west, 14th St. on the north, Polco St. on the east, and roughly contemporary Ford St. and 10th St. on the south. Photo courtesy of William Menkel, “‘New Plans for Old’: The Work of the Aviation Repair Depots,” Aerial Age Weekly, September 1, 1919, 1129, accessed Google Books.

May is finally here and with it racing fans from around the world will soon begin flocking to the Indianapolis Motor Speedway to attend practices and qualifying races in preparation for the Indianapolis 500. For the past century, the Speedway ─ both the track and the adjacent areas of the town ─ have become synonymous with motorsports and racing.

Fort Wayne Sentinel, March 23, 1917, sec. 2, p. 1, accessed Newspapers.com.

In addition to racing though, the area holds another important place in Indiana and U.S. history ─ as an innovative aviation hub during both world wars. During World War I, the track was used as a landing and flight test field and hangars built on site helped house aircraft. Just south of the track, the Allison Experimental Company manufactured parts for the Liberty Engine, arguably one of America’s greatest contributions to the war. And at Speedway’s aviation repair depot, workers restored 313 planes, 350 engines, and numerous aircraft parts. Their work helped keep our nation’s pilots in the air and made the Speedway area a center for military aviation during the war.

The United States lagged far behind the British, French, and Germans in military aviation when it entered World War I in April 1917. Those countries had been fighting  for three years and in that time had understood and capitalized on the value of military aircraft for combat and reconnaissance. American entry in the war spurred rapid expansion of the industry in the country. Although time constraints forced the U.S. to purchase much of its military aircraft from the British and French during this period, the country made great strides in preparing pilots for air service abroad and in the production and repair of engines and training aircraft.

Liberty 12 Model A V-12 Engine. Photo courtesy of the National Air and Space Museum.

Indianapolis’ central location made it a prime site for aviation repairs and flight testing. Nearby flying fields included Chanute Field in Rantoul, Illinois and Scott Field in Belleville, Illinois, McCook Field and Wilbur Wright Field in Dayton, Ohio, and Selfridge Field in Mt. Clemens, Michigan, among others. Additionally, the proximity of railroad lines in the city and automobile centers in Ohio, Michigan, and Illinois made it easier to access raw materials such as steel, aluminum, and lumber, as well as supplies and spare parts used in repairing wrecked aircraft. Perhaps even more importantly though was the leadership of men like Carl Fisher and James Allison, co-founders of the Speedway, who dedicated their manufacturing resources in the area and the Indianapolis Motor Speedway to the war effort.

Airplanes waiting to be placed in “roundhouse” at Speedway. “Aviation Repair Depot at Speedway City May Become Permanent When Aerial Mail Service is Extended to Midwestern Country,” Indianapolis News, August 10, 1918, accessed Newspapers.com.

The U.S. Army established the aviation repair depot in Speedway on February 4, 1918 with the arrival of the 810th Aero Squadron from Kelly Field in San Antonio, Texas. According to William Menkel, former captain in the U.S. Air Service and commanding officer of the depot, it was the first of the repair depots to get under way and begin repairs in the U.S. Other repair depots later opened in Dallas, Texas and in Montgomery, Alabama. In addition to the 810th Aero Squadron, the Speedway depot was also home to the 809th, 811th, and 821st squadrons. 150 men served in each squadron.

821st Aero Squadron. Photo courtesy of the Indianapolis Motor Speedway Collection.

In October 1918, the Speedway Dope, the newsletter of the aviation repair depot, reported that “the commissioned and enlisted personnel [at the depot] constitutes a cosmopolitan community. Mechanicians, [sic] clerks, cooks, and chauffeurs have come from all parts of the Union, and at the Speedway there is no East or West or North or South.” The majority of the civilian mechanics at the repair depot had little knowledge of aircraft before American entry in the war, but within a short time they became experts in the industry and in repair work. The U.S. Air Service established training schools for these men across the country and provided classes in engine assembly and wing and fuselage construction, while also teaching skills such as making and fastening metal parts to the aircraft, sewing fabric on wings, and applying dope varnish to the aircraft. The first wrecked aircraft arrived in April 1918.

Small Parts and Welding Department at the aviation repair depot. Photo courtesy of William Menkel, “‘New Plans for Old’: The Work of the Aviation Repair Depots,” Aerial Age Weekly, September 1, 1919, 1129, accessed Google Books.

Damaged planes were unloaded and often sent to the Dismantling Department where the engine, landing gear, tail surfaces, and other parts were removed, cleaned, and worked on separately before reassembly began. While some of the planes that arrived only needed minor repairs before being shipped back out, others were total wrecks that needed to be completely rebuilt and tested.

By July, output reached three completed planes a day. Perhaps even more impressive though were the modifications made to the aircraft to help increase pilot safety. Workers at the repair depot analyzed incoming wrecks in order to find patterns in destruction. They then used this information to make improvements in design of the aircraft. For example, in his 1919 report on repair depots, Captain Menkel noted that many damaged planes that arrived in Speedway had smashed instrument boards. The instrument board was located so close to the pilot that in the case of a crash their head was likely to hit it. Workers at the depot moved the instrument boards farther away from the pilot’s seat during their repairs. This extra space reduced the chance that the pilot would hit it in a crash, thereby improving the pilot’s safety and lowering the chance of damage to the instrument board.

Propeller Room. Photo courtesy of William Menkel, “‘New Plans for Old’: The Work of the Aviation Repair Depots,” Aerial Age Weekly, September 1, 1919, 1129, accessed Google Books.

The information learned from wrecked aircraft that arrived at the depot also resulted in other modifications, including the reinforcement of longerons and other parts of the plane to lower the chances of damage or fatal injury of the pilot and cutting out sections of the cowl frame to provide more distance between it and the pilot.

In a post report to Washington in January 1919, the Speedway Dope reported 313 airplanes repaired at the depot during 1918, representing a total value of $1,195,550.00 and 350 airplane motors valued at $638,699.00. In addition to these figures, the report noted repairs of wings, ailerons, elevators, rudders, and other miscellaneous parts valued at approximately $300,000.00. Added together, repairs at the depot well exceeded $2,000,000.00. Beyond the economic benefits and savings to the government was the fact that those working at the repair depot helped keep pilots in the air, reducing their chance of injury or death and ultimately giving the U.S. a better opportunity to win the war.

Articles in the Speedway Dope reiterated these sentiments, noting that those who trained or repaired airplanes in the Speedway area might be inclined to downplay the role they played in the war because they were not in the trenches abroad or flying in France. The repair and reconstruction of airplanes was a vital part of the war effort though.

Speedway Dope newsletter letterhead.

The third side of aviation has not only been neglected, but the public generally does not know that it even exists. The repair and reconstruction of damaged planes and motors, constitutes a bit part of the game of aviation. It is that part of the game that must be done and done right, or the other parts would fail to accomplish anything. True it does not carry any of the romance or glamour that follows the course of the pilot and his plane, and neither does it require the enormous financial outlay that goes with production . . . Yet this third side of aviation has been well taken care of and thousands of men who enlisted for service in France have remained at home repair depots and made it possible for others to enjoy foreign service and win international fame.

“The Third Side of Aviation-Rebuilding,” Speedway Dope, November 30, 1918, 1, accessed Indiana State Library Collections.

In the days immediately following the armistice on November 11, 1918, the Speedway Dope wrote that even though the war had ended, production at the depot should continue, as there was still plenty of work to do before completion of the final peace terms. Major Guy L. Gearhart, former commanding officer of the depot agreed. Maj. Gearhart recognized the important role the airplane would play in transportation after the war and believed the repair depot would become a permanent fixture in the Speedway.

A group of the Aviation Repair Depot Officers at the Flying Field, Speedway Motor Track. Left to right – Lt. A. D. McIlvaine, Sen. Instructor Frank Mills, Lt. James Wallace, Lt. William Groom, Lt. Col. A. W. Robins, Capt. Edward Laughlin, Lt. A. L. Maurer, Lt. Ralph M. Snyder, Lt. H. A. Knudson, Lt. R. J. Brandi, Lt. R. A. Ballard, Lt. Kincaid. Photo courtesy of the Speedway Dope, November 16, 1918, 1, accessed Indiana State Library.

The depot’s future remained unclear though. With the war over, immediate aviation interests in the area took a backseat to racing and motorsports. The Indianapolis 500, which had been cancelled in 1917 and 1918, recommenced in May 1919. The resumption of the annual race led to questions and concerns about the track and infield being used for aircraft. Despite initial orders calling for the closing of the depot in March 1919 though, the South Bend News-Times reported that recruitment for men for the U.S. Air Service at the Speedway aviation repair depot continued as of July. By the following year, however, the status of the aviation repair depot was again called into question. Some speculated that it would be removed from the Speedway area and relocated to Fairfield, Ohio. The government officially ordered the abandonment of the repair depot in September 1920 and publicized the sale of buildings and utilities in November of that year.

Although work in the Speedway area shifted back to racing and motorsports, aviation interests did not disappear completely. The Allison Experimental Company (Allison Engineering Company by 1921), located just west of the repair depot, continued to work to improve the Liberty aircraft engine into the 1920s. When General Motors purchased the company in 1929, it expressed a commitment to expanding its work in the aviation field. It was this commitment that made the Speedway area an aviation hub once again during World War II.

Be sure to check back in a few weeks when we examine the vital role the Speedway area played in military aviation in World War II!

Sources Used and Research Note:

William Menkel, “‘New Plans for Old’: The Work of the Aviation Repair Depots,” Aerial Age Weekly, September 1, 1919, 1129-1133, 1144, accessed Google Books.

Much of the information about the aviation repair depot came from articles in the Speedway Dope. The publication ran from September 28, 1918 until February 1, 1919. Copies of the paper can be located at the Indiana State Library.

The Indiana Historical Bureau installed a new state historical marker commemorating the aviation repair depot in Speedway on April 24, 2018. Marker sponsors included Rolls-Royce North America, Rolls-Royce Heritage Trust – Allison Branch, and the Town of Speedway. For more information on the aviation repair depot and additional sources, see: https://www.in.gov/history/markers/4406.htm

This slideshow requires JavaScript.

National Aspirations, Financial Chicanery and the Ultimate Destiny of the Bee Line Railroad

Leander M. Hubby (Biographical Cyclopedia and Portrait Gallery of the State of Ohio, Vol. 4. Cincinnati: Western Biographical Publishing Company, 1887); First Annual Report Cover, Cleveland, Columbus, Cincinnati and Indianapolis Railway, books.google.com.

On December 5th 1868, a home gas stove explosion nearly killed and “terribly burned” longtime Cleveland, Columbus and Cincinnati Railroad (CC&C) president, Leander M. Hubby. For more than a decade Hubby had led this regional powerhouse as it solidified its financial grip on the Bee Line component railroads. Along the way, he earned an almost patriarchal reputation among officers and men of the road’s operating corps.

Routes of the Cleveland, Columbus and Cincinnati Railroad , Cleveland, Columbus, Cincinnati and Indianapolis Railway
Routes of the Cleveland, Columbus and Cincinnati Railroad (green; Bee Line), Bellefontaine Railway (red) and Cleveland, Columbus, Cincinnati and Indianapolis Railway (green and red), courtesy of Erin Greb Cartography.

In May 1868 Hubby had assumed the presidency of the successor railroad that, for the first time, combined the Bee Line components roads into a single legal entity: the Cleveland, Columbus, Cincinnati and Indianapolis Railway (CCC&I). Unfortunately, his near-death experience effectively sidelined Hubby until he officially resigned his role in September 1870.

Oscar Townsend (Crisfield Johnson, History of Cuyahoga County, Ohio. D.W. Ensign & Co., 1879.); Hinman B. Hurlbut (J. Fletcher Brennan, ed., Biographical Cyclopedia and Portrait Gallery of the State of Ohio, Vol. 1. Cincinnati: John C. Yorston & Co., 1880.)

Into this leadership vacuum stepped a new duo of recently ensconced Bee Line board members. Oscar Townsend’s board appointment in September 1868 closely followed Hinman B. Hurlbut’s similar election at the formation of the CCC&I that May. Then, following Hubby’s unfortunate accident and subsequent resignation in 1870, the Townsend/Hurlbut duo formally assumed their heretofore-tacit responsibilities as president and vice president. They could not have written a more perfect script.

Hurlbut had joined the Bellefontaine Railway’s board and finance committee at its formation in 1864. His Cleveland-centric banking business included numerous Cleveland Clique clients. Soon he was part of the group. Hurlbut had purchased the charter of Cleveland’s Bank of Commerce in the 1850s and reorganized it as the Second National Bank.

Oscar Townsend began his career with the CC&C as a laborer in 1848. Between 1856 and 1862 he advanced through the ranks of its Cleveland freight office. Townsend shifted to Hurlbut’s Second National Bank in 1862, learning his banking skills at Hurlbut’s knee.

The CC&C’s longstanding general ticket agent S. F. Pierson reported, in an exposé on the demise of the railroad, that Hurlbut had tapped the bank of its financial strength by the time he left it in 1865. While one flattering biographer characterized Hurlbut’s exit as due to “the arduous labors and close application necessitated by these and other financial tasks he had undertaken,” Pierson had a different take.

Samuel F. Pierson
Samuel F. Pierson (The Biographical Directory of The Railway Officials of America for 1887. Chicago: The Railway Age Publishing Company, 1887: 252)

From Pierson’s perspective, Hurlbut “retired, consequent upon the destruction of more than its [the Second National Bank’s] entire surplus, and some of the securities and private deposits of the Bank. These…had been abstracted, and the money lost in speculation. The cashier had ended his own life in a painfully tragic manner, and Mr. Hurlbut was permitted to retire.”

It was about this time that Oscar Townsend also left the bank and segued to a superintendent’s role overseeing the Western Department of the Empire Transportation Company. Such businesses were immensely profitable and important extensions of the railroads they served in the post-Civil War era. Responsible for developing relationships with key shippers, businesses such as the Empire Line “fast freight” often decided which railroads would transport the huge amounts of freight under their control.

Empire Line “fast freight” boxcar
Empire Line “fast freight” boxcar (The Official Railway Equipment Register, Vol 23, No 9, February, 1908. New York: The Railway Equipment and Publication Company, 1908: 50.)

At the same time, nearly all railroad presidents quizzed by an 1867 Ohio Special Legislative Committee confessed they had been offered fast freight line stock “on favorable terms, or as a gratuity.” Enticed railroad directors began to work in concert with the “fast freights” to direct high-value freight traffic over their favored “fast freight”. This left only bulkier and less profitable local freight for the railroads themselves.

Inasmuch as the CCC&I started life in 1868 as a “financiers” railroad, Townsend and Hurlbut fit right in. By the time of Hubby’s retirement in 1870, they took control.

David Kilgore, author’s personal collection.

In the Bee Line’s new form, an old and wily politician to handle the Hoosier “good old boy” network was no longer needed. The long railroad career of David Kilgore came to an end in February 1870. And with his departure went the last vestige of the Hoosier Partisans.

Routes of the Atlantic and Great Western Railway, Erie Railway, Cleveland, Columbus, Cincinnati and Indianapolis Railway, Cincinnati, Hamilton and Dayton Railroad
Routes of the Atlantic and Great Western Railway (blue), Erie Railway (orange; partial), Cleveland, Columbus, Cincinnati and Indianapolis Railway (green; Bee Line), and Cincinnati, Hamilton and Dayton Railroad (purple). Courtesy of Erin Greb Cartography.

Only one significant transregional railroad would be constructed during the Civil War. The amalgam of railroads that became known as The Atlantic and Great Western Railway Company (A&GW) would stand by itself. With huge capital infusions from London and Continental investors, the road opened for business in August 1865 along its entire 388 mile route from Salamanca in Upstate New York to Dayton Ohio.

The first Atlantic and Great Western train arrives in Kent, Ohio, 1863
The first Atlantic and Great Western train arrives in Kent, Ohio, 1863. Courtesy of Kent (Ohio) Historical Society.

Nefarious London rail broker-cum-financier James McHenry had cajoled voracious  English and European investors to fund the improbable A&GW project. Exploiting his role as proxy for these complacent capitalists, McHenry seized control of the road Ohioan Marvin Kent had brought to life in the 1850s. And by the early 1870s, he also commandeered the board of the Eastern trunk line intersecting with the A&GW at Salamanca: The Erie Railway. Now, he needed an outlet to St. Louis to complete his domination of railroads extending from New York City to the West.

(L to R): Marvin Kent, courtesy of Allegheny University, Pelletier Library Special Collections, Reynolds Collection; James McHenry, Courtesy of Pelletier Library (Reynolds Collection), Allegheny College, Meadville, PA.; Peter H. Watson (Edward Harold Mott, Between the Ocean and the Lakes: The Story of Erie. New York: John S. Collins, 1901.)

James McHenry’s financial flimflam with A&GW’s European investors always left free cash with which to subsidize his own schemes. He had used some of those funds to insert Peter H. Watson as president of the Erie Railway in 1872. Watson became McHenry’s conduit to Hinman B. Hurlbut and the Bee Line. McHenry would sprinkle a substantial amount of cash on Hurlbut, and their subterfuge to assume control of the CCC&I.

Within weeks of Watson’s elevation to Erie’s presidency, he penned a letter to McHenry:

I opened negotiations with the parties controlling this road [CCC&I], and my success was greater and more rapid than I could have hoped. The result is embraced in the conditional agreement made by you with Mr. Hurlbut.

Hurlbut convinced members of the Cleveland Clique to sell their shares before word of an impending takeover became public. He then conveyed the acquired shares, and others from the Bee Line treasury, to McHenry. As S. F. Pierson noted:

…several members [of the CCC&I board] were …retired from active pursuits, and not disposed to take much trouble in the matter; and of the balance, one portion used the Vice-President [Hurlbut] to further some scheme of their own, and the other hoped he might want to use them.

When the A&GW’s plans for the CCC&I became public in early 1873, members of the Cleveland business establishment and other New York investors were completely flummoxed. After all, the A&GW showed assets of less than $40 million while reporting liabilities of more than $120 million. By comparison, the CCC&I was of robust but declining financial health. S. F. Pierson was stunned, noting, “Vice President [Hurlbut] has unbolted our doors from within.”

John H. Devereux (J. Fletcher Brennan ed., Biographical Cyclopedia and Portrait Gallery of the State of Ohio, Vol. 1. Cincinnati: John C. Yorston & Co., 1880.)

John H. Devereux, soon to become a key player in the final destiny of the Bee Line, painted a more colorful picture. He characterized the possibility as “an attempt to chain a living man to a dead corpse.” Before long, as orchestrated by James McHenry, Devereux would become President of both the Bee Line and the A&GW, and vice president at the Erieall at the same time!!

McHenry had arranged for Devereux’s CCC&I presidential appointment as soon as the A&GW assumed financial and board control of it in April 1873. Devereux’s installation quelled some of the Bee Line stockholders’ angst, given his upstanding reputation as a railroad executive. But when Ohio’s legislature blocked McHenry’s plan to lease the CCC&I to the anemic A&GW, the Bee Line shareholders’ attitude shifted.

Still seeking to run the A&GW and CCC&I as a single entity in spite of his failed leasing scheme, McHenry orchestrated Devereux’s appointment as general manager at the A&GW. By January 1874 he was bumped up a notch to president – while still heading the rival Bee Line!

The Bee Line shareholders had had enough. In an effort to oust McHenry’s A&GW and Erie board proxies, they orchestrated a massive CCC&I shareholder turnout for the March 1874 annual meeting. The opposition candidate slate included several former Cleveland Clique members, New York investors, and one Hoosier: David Kilgore.

And in an interesting twist, deposed CCC&I president Oscar Townsend headed the opposition – until Hinman Hurlbut brought to light Townsend’s involvement in a freight payola ring. The revelation tipped the balance. The opposition suffered a narrow defeat. There would be no Hoosier Partisan revival.

Longer term, James McHenry’s self-induced financial problems would only mount. His tenuous grip on the A&GW and CCC&I slipped away at the hands of Peter Watson’s 1874 Erie Railway successor: Hugh H. Jewett. Jewett would extricate the Erie from McHenry’s grasp, and push him to near-bankruptcy.

(L): Hugh J. Jewett (Edward Harold Mott, Between the Ocean and the Lakes: The Story of Erie. New York: John S. Collins, 1901.) (R): William H. Vanderbilt (Harper’s Weekly 29, no. 1513 [December 19, 1885].)

John Devereux remained president of both the Bee Line and A&GW (exiting bankruptcy as the New York, Pennsylvania and Ohio Railroad [NYPA&O; Nypano]) until 1881. At that time William H. Vanderbilt, of New York Central Railroad fame, sought control of the Bee Line to assure an entry into Cincinnati and St. Louis. Devereux had taken control of the linchpin to Cincinnati: the Cincinnati, Hamilton and Dayton Railroad. He soon yielded to Vanderbilt’s advances.

By 1889 the Bee Line and the Indianapolis and St. Louis Railroad it controlled (between Indianapolis and St. Louis) would be folded into another Vanderbilt-controlled railroad and emerge as the Big Four route.

Route Map of the Big Four Route
Route Map of the Big Four Route (the Cleveland, Cincinnati, Chicago and St. Louis Railway), c1900. Courtesy of the New York Central System Historical Society.

In making this decision Devereux, in his role as president of the NYPA&O, effectively parted ways with a livid Hugh Jewett and the Erie. A week later Devereux resigned. Soon, the Erie would subsume the NYPA&O.

Route Map of the Erie Railroad 1930
Route Map of the Erie Railroad, c1930.

The die was now cast for the future of the Bee Line as well. Its destiny would lie with Vanderbilt’s New York Central.

Oliver H. Smith
Oliver H. Smith, Courtesy of the Indiana Historical Society.

It had been a long journey since 1848, when Oliver H. Smith challenged the citizens of east central Indiana to avoid being bypassed by the technological marvel of the age. They would heed his warning by their investment in the Indianapolis and Bellefontaine Railroad – the Bee Line’s Indiana segment.

Smith’s prescient vision proved to be uncannily accurate. It was if he had penned Indiana’s state motto: “the Crossroads of America.” But for the Bee Line, it might never have come to pass.

Interested in the Bee Line?

Click on the Bee Line book Cover to LEARN MORE

Push and Pull of the Hoosier Partisans and Cleveland Clique: Consolidation of the Bee Line Railroads

See Part VI to learn how the Hoosier Partisans moved for autonomy as the Cleveland Clique tightened its grip on the Bee Line railroad.

image of Steam Locomotive Explosion, 19th century
Steam Locomotive Explosion, 19th century, courtesy of Martin F. Wintermute.

In the summer of 1859, the Indianapolis, Pittsburgh and Cleveland’s (IP&C’s) Madison locomotive exploded near Kilgore Station in Yorktown, Indiana – killing the engineer and fireman. A month later, near the same location, an intoxicated man fell from the station’s platform and was killed by a passing train.

These tragic events occurred just weeks after the Hoosier Partisans’ scheme to achieve their independence, by leveraging on the IP&C’s strategic position as a funnel to the West, had failed. The accidents seemed eerily suggestive of the Hoosier Partisans’ plight in the face of the Cleveland Clique’s mustered financial power.

Map of the Indianapolis, Pittsburgh and Cleveland Railroad (formerly the Indianapolis and Bellefontaine Railroad), ca. 1855
Route of the Indianapolis, Pittsburgh and Cleveland Railroad (formerly the Indianapolis and Bellefontaine Railroad), ca. 1855. (Reprinted from Map of Indiana. New York: J. H. Colton & Co., 1855. Courtesy of Ball State University Libraries, Map Collections. Annotated by Erin Greb Cartography.)

By the IP&C’s May 1860 board meeting the Partisans were resigned to their fate: “we know of no other means by which we can extricate ourselves from our monetary difficulties and save the road . . . We deem it best to extend and continue said [joint operating] contract with said Bellefontaine and Indiana Railroad (B&I).”

Indiana board members had again faced the reality that the railroad business, on many levels, could be a perilous endeavor. The push and pull of the Hoosier Partisans and Cleveland Clique would ultimately result in the legal consolidation of the Bee Line Railroad components roads.

Map of the Bee Line’s Bellefontaine Line joint operating railroads and the Columbus, Piqua and Indiana Railroad
Map of the Bee Line’s Bellefontaine Line joint operating railroads (Indianapolis, Pittsburgh and Cleveland [blue], Bellefontaine and Indiana [red]), and the Columbus, Piqua and Indiana Railroad [brown], courtesy of Erin Greb Cartography.
Clearly sensing the IP&C would be reluctantly compelled to extend its joint operating agreement with the B&I, John Brady, the receiver for the Columbus, Piqua and Indiana Railroad (CP&I), demanded that the IP&C honor its 1852 through-line agreement with them. He recited the agreement’s language regarding freight and passenger traffic between Columbus, Ohio and Indianapolis, which mandated “sending any/all east/west traffic which can be done” over this connection.

Incredibly, Brady was able to pull off what the Hoosier Partisans had been unable to accomplish in their effort to effect a divorce from the Cleveland Clique – at least until 1863 when the CP&I was once again reorganized.

Ironically, the advent of the Civil War in 1861 would bring prosperity to the anemic component roads of the Bee Line – now operating jointly as the Bellefontaine Line. The combination of enhanced demand for grain to feed the troops and bolster poor harvests on the European continent spelled profits for the railroads.

Map of the Eastern trunk line railroads, c1855
Map of the Eastern trunk lines, c1855 (Baltimore and Ohio Rail Road, Pennsylvania Railroad, Erie Railway [New York and Erie Rail Road 1832-1861], New York Central Railroad), courtesy of Erin Greb Cartography.
During this time, frustrations had mounted among East Coast merchants and the railroad trunk lines that served them. West of the Appalachians they were dealing with a fractured network of independent short lines and their inefficient freight handling between lines. Add to this the further stress of moving troops and supplies quickly, and something had to be done.

The demands of war pushed operational efficiency forward – driven by the trunk lines.  The resulting more integrated rail networks also led to enhanced profitability, and opened the door for the Eastern trunk lines to expand their footprint west.

The Bee Line roads finally got their financial houses in order. By June 1863 the IP&C declared its first dividend in years—3 percent. Taking advantage of newfound prosperity, it declared another 3 percent dividend in December and voted to increase capital stock by $300,000.

Ostensibly this was done to pay for new equipment, new terminals, and road improvements. In reality it provided a convenient opportunity for the Cleveland Clique to increase their stock position and thereby dominate upcoming shareholder votes. To that end they determined, once and for all, to quell the IP&C board’s irritating Hoosier independence.

images of John Brough, Thomas A. Morris, Alfred Kilgore
(L to R): John Brough, courtesy of the Ohio History Connection; Thomas A. Morris, courtesy of the Indiana Historical Society; Alfred Kilgore, author’s personal collection.

Courtesy of the Clique’s voting block, John Brough returned as IP&C president at the February 1863 annual meeting – following Hoosier figurehead Thomas A. Morris’ 3½-year tenure. In a last-ditch effort to stem the Clique’s board dominance, Alfred Kilgore—Yorktown’s first station agent, son of director David Kilgore, and an Indiana state legislator— introduced a House bill in January 1863. Had it passed, all Indiana railroad corporations would have been required to elect three-quarters of their board from stockholders resident in the state. It died in committee.

image of State Flag of Ohio
State Flag of Ohio, officially adopted 1902.

Beyond Brough’s return to the IP&C’s presidency, he emerged as the front-runner in Ohio’s governor’s race in the summer of 1863. Orchestrated by the Cleveland Clique, Brough’s candidacy leveraged on his earlier but noteworthy Ohio political career and effective pro-Union speechmaking style. The War Democrats and Republican Union parties joined forces to secure his nomination. He was overwhelmingly
elected in October 1863.

image of Stillman Witt
Stillman Witt (J. Fletcher Brennan, ed., Biographical Cyclopedia and Portrait Gallery of the State of Ohio, Vol. 2 Cincinnati: John C. Yorston & Co., 1880.)

Stillman Witt, Cleveland Clique heavyweight and by then the second-largest individual holder of Bee Line roads stock, had encouraged and supported his close friend’s candidacy. On Brough’s election as governor Witt volunteered to fulfill his duties as president of the Bee Line roads. He insisted Brough draw his IP&C presidential salary while serving as governor.

During 1864 Witt steered the Bee Line roads toward a brisk legal consolidation. At the IP&C’s June board meeting a committee was appointed “to agree upon mutual and just terms for consolidating the capital stock of this company with that of the B&I.” Reprising its once central role in the history of both the IP&C and B&I, Union and its Branham House was chosen as the site for the decisive shareholder consolidation vote.

image of Branham House Hotel, Union, Indiana.
Branham House Hotel in Union, Indiana, courtesy of the Preservation Society of Union City.

Finally, after years of Hoosier Partisan and Cleveland Clique push and pull, the two lines were legally consolidated on November 24, 1864 – emerging as the Bellefontaine Railway Company. For the first time since its inception in 1848, the railroad extending from Indianapolis to Union failed to exist as a stand-alone Hoosier-based—if not completely controlled—entity.

Brough was elected the new entity’s first president at its inaugural meeting in Union on December 22nd. It would be a short tenure, however, as Brough died in office on August 29, 1865 while also serving as Ohio’s last wartime governor.

After Brough’s death, Witt officially assumed the role he had been occupying as Brough’s proxy. His style was businesslike and close to the vest. Board minutes reflected meetings run with a limited agenda, focused on few topics, and with little discussion noted.

Witt saw to it that the Cleveland Clique began to recoup investments made in the road’s predecessor lines. Hardly a board meeting would go by over the next three years in which a dividend was not declared. And there were up to three board meetings a year.

The Cleveland Clique was not done tightening its grip on the Bee Line. In addition to Brough’s election as president in December 1864, a landslide of Cleveland Clique members took eight of eleven seats on the Bellefontaine Railway’s board. Included among this number was an individual destined to alter the Bee Line’s future trajectory: Hinman B. Hurlbut.

Hoosier David Kilgore, the only surviving original director from the Indianapolis and Bellefontaine Railroad (I&B) days, assumed one of the three crucial executive committee positions.

images of Hinman B. Hurlbut and David Kilgore
(L to R): Hinman B. Hurlbut (J. Fletcher Brennan, ed., Biographical Cyclopedia and Portrait Gallery of the State of Ohio, Vol. 1. Cincinnati: John C. Yorston & Co., 1880.); David Kilgore, author’s personal collection.

By the spring of 1868 the Cleveland Clique decided to finally consolidate all three of the original Bee Line component roads – then comprised of the Bellefontaine Railway and the Cleveland, Columbus and Cincinnati Railroad (CC&C). The need for additional monies to restructure debt and fund an expanding footprint was justification enough to tap the CC&C’s solid financial underpinnings.

In reality the freed and raised cash by the consolidation would be spent on both business expansion and personal enrichment. To a greater extent than marketed to the public the new road was being recast, like many others in the post-Civil War era, as a “financiers’” railroad.

Leander M. Hubby, First Annual Report Cover, Cleveland, Columbus, Cincinnati and Indianapolis Railway
Leander M. Hubby (Biographical Cyclopedia and Portrait Gallery of the State of Ohio, Vol. 4. Cincinnati: Western Biographical Publishing Company, 1887.); First Annual Report Cover, Cleveland, Columbus, Cincinnati and Indianapolis Railway, books.google.com.

On May 13, 1868, the Cleveland, Columbus, Cincinnati and Indianapolis Railway (CCC&I) sprung to life under the leadership of former CC&C president Leander M. Hubby. Hubby had established a long, profitable, and almost patriarchal reputation among his management team over the course of more than a decade at the helm of the CC&C. He and the newly recast Bee Line faced two immediate and significant obstacles to their future viability.

One challenge was to finally complete and/or control a rail line between Indianapolis and St. Louis. By 1867, the Cleveland Clique had assembled what it thought was a consortium of six similarly-interested rail lines to sign an expensive long-term lease of a road between Terre Haute and St. Louis. It proved to be otherwise.

The poorly engineered, indirect, and financially tenuous St. Louis, Alton and Terre Haute Railroad (StLA&TH) was its only option. And by the time the lease was signed the original consortium had essentially dwindled to two: the Bee Line and another Clique-affiliated railroad.

Annotated Map of the routes of the St. Louis, Alton and Terre Haute; St. Louis, Vandalia and Terre Haute; Indianapolis and St. Louis; Terre Haute and Indianapolis; Indianapolis, Pittsburgh and Cleveland railroads
Routes of the Cleveland, Columbus, Cincinnati and Indianapolis (partial; blue), St. Louis, Alton and Terre Haute (green), Indianapolis and St. Louis (red), Terre Haute and Indianapolis (purple), St. Louis, Vandalia and Terre Haute (“Vandalia Line”, brown), courtesy of Erin Greb Cartography.

More to the point, as the consortium disintegrated, the road between Indianapolis and Terre Haute – by then called the Terre Haute and Indianapolis Railroad (TH&I) – backed out. Instead, it would align with Pennsylvania Railroad interests to complete John Brough’s dream of a direct line to St. Louis, under the colloquial Vandalia Line moniker. As a result, consortium participation with competitors made no sense.

However, the TH&I’s realignment with Pennsylvania Railroad interests meant the Bee Line was left without a link between Indianapolis and Terre Haute. And the TH&I would not entertain an arrangement to let the Bee Line utilize its tracks.

By the fall of 1867 the Clique’s Bee Line board made the financially difficult decision to build its own parallel line between Indianapolis and Terre Haute. The Indianapolis and St. Louis Railroad (I&StL), headed by Thomas A. Morris, would be built in less than three years. And soon, it would fold and operate the StLA&TH under its banner. But it had been a costly decision.

Hubby’s other immediate Bee Line challenge was more sinister in its design. And, at least initially, Hubby would be unaware of its existence. But, in fact, it would threaten the Bee Line’s very survival and that of its Cleveland Clique benefactor.

Check back for Part VIII, the final blog in the Bee Line series, to learn more about how the national aspirations of other railroads, and their financial chicanery, recast the Bee Line Railroad’s ultimate destiny.

Interested in the Bee Line?

Click on the Bee Line book Cover to LEARN MORE

image of Forging the Bee Line Railroad book cover

The Hoosier Partisans Move for Autonomy as the Cleveland Clique Tightened Its Grip on the Bee Line Railroad

See Part V to learn about the Cleveland Clique’s elusive grasp for control of the Bee Line Railroad.

Map of Bee Line Railroad Component Lines: the Indianapolis, Pittsburgh and Cleveland, the Bellefontaine and Indiana, and Cleveland, Columbus and Cincinnati
Map of Bee Line Railroad Component Lines: Indianapolis, Pittsburgh and Cleveland (blue), Bellefontaine and Indiana (red) and Cleveland, Columbus and Cincinnati (green), courtesy of Erin Greb Cartography.

In the four months since John Brough left the presidency of the Bee Line’s Indianapolis, Pittsburgh and Cleveland Railroad (IP&C) in February 1855, more than just its name had changed. The Hoosier Partisans’ move for autonomy would take concrete form as the Cleveland Clique tightened its grip on the Bee Line Railroad

Calvin Fletcher, reluctantly elected president in John Brough’s stead, had met with a litany of key personnel and other midwestern railroad presidents to gain a broader perspective. He had also dealt with a variety of operational, cash flow and accounting issues left unaddressed by Brough.

Images of John Brough and Calvin Fletcher
(L to R): John Brough, courtesy of the Ohio History Connection. Calvin Fletcher, courtesy of the Indiana Historical Society.

As a result, by April the line’s Superintendent had resigned. At the same time, Fletcher engaged an individual to look into unaccounted for and delayed freight. He pushed for cost reductions at the engine shop at Union, and restructured the road’s finances.  John Brough, reflecting on his own performance, acknowledged: “It appeared there were large discrepancies between the books of the Superintendent and those of the Secretary…As President I should have discovered these discrepancies and applied the remedy.”

Map of the proposed route of the Mississippi and Atlantic Railroad, the Terre Haute and Richmond Railroad, and the Indianapolis, Pittsburgh and Cleveland Railroad
Map of the proposed route of the Mississippi and Atlantic Railroad (orange), Terre Haute and Richmond (magenta) and Indianapolis, Pittsburgh and Cleveland (blue), courtesy of Erin Greb Cartography.

On top of Brough’s lapses while heading the IP&C, he had been removed as President of the Mississippi and Atlantic Railroad (M&A) by late May 1855 in favor of Chauncey Rose – founder and former president of the Terre Haute and Richmond Railroad. The M&A, the Cleveland Clique’s bet to reach St. Louis, was in its death throes. It had taken a public relations beating at the hands of Illinois river town and Chicago politicians, who questioned the road’s legal legitimacy – and John Brough’s managerial track record. Investors abandoned the M&A, leaving Brough without portfolio.

Image of Chauncey Rose
Chauncey Rose, courtesy of the Indiana Historical Society.

Calvin Fletcher, frustrated by what he discovered as president of the IP&C, informed the Hoosier Partisans: “I feel that my official duties in the RR are oppressive & that I must leave them…There is a degree of corruption in relation to it that I cannot arrest—or rather the effects of which already passed that I cannot overcome.”

As the July 1855 annual meeting approached, the Partisans pushed Fletcher to continue on as president. They soon faced reality:  he would not remain. As late as the day before the meeting Fletcher could not figure who would become his successor. It soon became clear, however, the Cleveland Clique had been making plans as well. Incredibly, John Brough would be resurrected not only to retake his prior role at the IP&C, but also be anointed as president of the Bee Line’s Bellefontaine and Indiana Railroad (B&I) at the same time!

Brough’s operational and financial shortcomings would have been obvious to the Cleveland Clique by then. On the other hand he was loyal, politically savvy, and possessed an Ohio pedigree. Given the newly redefined and more limited scope of the president’s role, and with strong Clique operational and financial expertise now present on both boards, Brough was serviceable.

Effectively, the Cleveland Clique would now control both the B&I and IP&C. While not yet legally consolidated, the two roads would be run as one while John Brough and the Clique considered the calculus to officially bind them together.

Sparked by Brough’s Clique-masterminded elevation to the dual Bee Line presidential roles, the IP&C’s Hoosier Partisans squirmed under the terms of the joint operating agreement foist upon them by the Cleveland Clique the year before. Both the perpetual nature of the contract and mandate to consolidate with the B&I “at the earliest possible moment” were not sitting well. Discovering the Cleveland, Columbus and Cincinnati Railroad (CC&C) had never technically executed the contract, the Hoosier Partisans made a move to modify its language.

By the IP&C’s March 1856 annual meeting, revised terms of the joint operating agreement had been hammered out. A newly reconstituted and more representative overall executive/finance committee was arranged. At the same time, the contract term was reset to five years, instead of being perpetual. Any party to the contract could now terminate it with three months’ notice. However, this clause could only be exercised after the agreement had been in place for three years.

Map of the Bee Line Railroad component lines, and Columbus, Piqua and Indiana and other roads aligned with the B&O (to Wheeling WV), Pennsylvania (to Pittsburgh PA) and New York Central (to Buffalo NY) trunk lines.
Map of the Bee Line Railroad component lines (blue, red, green), and Columbus, Piqua and Indiana (brown) and other roads aligned with the B&O (to Wheeling WV), Pennsylvania (to Pittsburgh PA) and New York Central (to Buffalo NY) trunk lines, courtesy of Erin Greb Cartography.

Fortunately for the Hoosier Partisans, the IP&C’s three-year joint operating obligation ended as the Columbus, Piqua and Indiana Railroad (CP&I) finally reached Union in the spring of 1859. Now the IP&C could anticipate a substantial revenue boost as freight and passengers traveled to/from Columbus across CP&I track to Union. From Columbus, Pittsburgh could now be reached – and the Pennsylvania Railroad headed to Philadelphia – via affiliated lines.

Union and the IP&C were proving to be a pivotal funnel for other traffic as well. Freight and passengers headed to/from New York across the CC&C and aligned roads to the fledgling New York Central Railroad at Buffalo would find their way to Union. Similarly, via the CP&I link between Union and Columbus OH, the Baltimore and Ohio Railroad (B&O) could now be accessed at Wheeling WV. And, courtesy of a new through-line arrangement connecting the B&O’s eastern terminus at Baltimore with New York City, a second alternative for reaching this center of commerce from Union became a reality.

The IP&C would be the clear beneficiary of these new connections to the east – if only it could effect a separation, if not a divorce, from the B&I as well as the CC&C. Then, standing individually, the IP&C could strike lucrative through-line agreements with each of the eastern trunk lines and their local affiliates. By way of these arrangements, the Hoosier Partisans could once again regain control over their own destiny.

At the March 1859 IP&C board meeting, Partisan David Kilgore proposed a three-person board committee be appointed to “pursue a line of fair and impartial conduct between our two connections at Union.” The concept was for the IP&C to direct traffic under its control and destined for New York, Philadelphia, Boston, and Baltimore to these connecting roads “in proportion to the trade and travel received from the several points named above.”

Images of David Kilgore, Thomas A. Morris, and Stillman Witt
(L to R): David Kilgore, from the author’s personal collection; Thomas A. Morris, Courtesy of the Indiana Historical Society; Stillman Witt (J. Fletcher Brennan, ed., Biographical Cyclopedia and Portrait Gallery of the State of Ohio, Vol. 2. Cincinnati: John C. Yorston & Co., 1880.)

In addition to David Kilgore, ubiquitous Indiana railroad construction engineer, recent president of the Indianapolis and Cincinnati Railroad and IP&C board/executive committee member Thomas A. Morris, and Cleveland Clique and CC&C strongman Stillman Witt were appointed to the committee.

The stars were aligning from an operational standpoint as well; a March 28 letter from the receiver of the CP&I announced they “will be prepared in a very few days to transport passengers and freight” between Union and Columbus OH.

A crucial series of IP&C-arranged meetings with presidents and general managers of several of the eastern trunk lines and their Ohio-affiliated roads took place in Columbus, Ohio that May. The importance of Union and the IP&C’s Indianapolis connection west toward St. Louis were obviously not lost on the roster of kingpins who decided to attend the Columbus confab.

As might be expected, there were two distinct perspectives on the IP&C’s postulated autonomy. Those regional lines aligned with the Pennsylvania Railroad or B&O via CP&I connections at Columbus OH endorsed the IP&C’s move toward independence. Not surprisingly, those roads associated with the New York Central via Bee Line alignments at Cleveland, or with the Pennsylvania Railroad via the Ohio and Pennsylvania Railroad [O&P] (passing near the B&I’s eastern terminus at Galion OH) took the opposite position. Among this group was the CC&C’s then president, Leander M. Hubby.

Image of Leander M. Hubby
Leander M. Hubby, (Biographical Cyclopedia and Portrait Gallery of the State of Ohio, Vol. 4. Cincinnati: Western Biographical Publishing Company, 1887.)

Shortly after the meeting, as Hubby contemplated the implications of the IP&C’s stratagem – with its alternative access to New York City via the B&O – he balked. “This company would not quietly submit to receiving a divided business from the IP&C.” Hubby went on, and to the heart of the matter, “this company contributed largely in money and credit to the completion and opening of the Bellefontaine Line…I think it my duty to say…this Company…will at once form other connections which are being offered them.”

Bee Line financier Richard H. Winslow of Winslow, Lanier & Co. tag-teamed with Hubby, mounting an attack on the IP&C’s soft financial underbelly. “In view of your embarrassments growing out of the large debt falling due the 1st of January next, we should think it a hazardous experiment and one that may lead to very bad consequences.”

In many respects the Hoosier Partisans’ dream of an independent IP&C had been dashed years before when it accepted the financial help of “foreign” interests—be they in New York, Cleveland, or Europe.

Hollow recognition was paid to the Partisans in the wake of the Union episode. At the annual IP&C board elections in July 1859, Thomas A. Morris was elected president. In turn, John Brough stepped down from the IP&C presidency but continued to hold dual roles as president of the B&I and chairman of the overall Bellefontaine Line executive committee. The title of general superintendent was also added to his dossier. Brough and the Cleveland Clique would control eight seats on the IP&C board to the Hoosier Partisans’ seven.

At the May 1860 board meeting, extension of the revised Bee Line joint operating contract was considered. Swallowing its pride and with a financial gun to its head, the IP&C board reluctantly moved to accept it.  If anything, the Union episode crystallized the Cleveland Clique’s determination to drive the B&I and IP&C to a formal and final consolidation under their direct control.

And while the IP&C’s contract extension with the B&I had taken more than a year to be resolved, the Union episode hastened the day when the IP&C would no longer exist as a separate entity. And with it, the Hoosier Partisans’ dream of maintaining control of their own destiny faded to a smoldering ember.

Check back for Part VII to learn more about the push and pull of the Hoosier Partisans and Cleveland Clique, leading to the legal consolidation of the Bee Line component railroads.

Continue reading “The Hoosier Partisans Move for Autonomy as the Cleveland Clique Tightened Its Grip on the Bee Line Railroad”

The Cleveland Clique’s Elusive Grasp for Control of the Bee Line Railroad

See Part IV to learn how the Cleveland Clique leveraged on John Brough to solidify its control of the Bee Line and a route to St. Louis.

John Brough, Henry B. Payne
(L) John Brough, courtesy of the Ohio History Connection. (R) Henry B. Payne, courtesy of the Library of Congress.

With John Brough’s election to president of the Indianapolis and Bellefontiane Railroad [I&B] on June 30, 1853, the Cleveland Clique cemented its position as the Midwest’s dominant railway cabal. Brough’s dual roles, both there and as president of the Mississippi and Atlantic Railroad (about to initiate construction between Terre Haute and St. Louis), personified the Clique’s reach.

It was also a visible sign of president Henry B Payne’s effectiveness crafting and implementing the Cleveland, Columbus and Cincinnati Railroad’s [CC&C’s] growth strategy. Now his attention turned to commanding the Bee Line component railroads and a line to St. Louis, both physically and legally. But, the Cleveland Clique’s grasp for control of the Bee Line Railroad would be elusive at best.

Map of railroads between Indianapolis and Cleveland c1860, annotated to show component Bee Line railroads, and the Columbus, Piqua and Indiana railroad
Map of the Bee Line component lines: CC&C, B&I in red, I&B in blue; Columbus, Piqua and Indiana Railroad (CP&I) in brown, courtesy of Erin Greb Cartography.

Just prior to Brough’s promotion, the I&B’s Clique-influenced board had resolved to convert its 4’ 8½” ‘standard gauge’ track (lateral dimension between rails) to the 4’ 10” ‘Ohio gauge.’ By law, the Ohio legislature had mandated that all railroads chartered there must be constructed to this dimension. As a result both Ohio legs of the Bee Line, the Bellefontaine and Indiana [B&I] and CC&C, had been built to this dictated standard. The Indiana-chartered I&B’s non-conforming gauge, however, prevented uninterrupted service between Cleveland and Indianapolis.

The I&B moved carefully to implement its gauge-change resolution. This was because, in early 1852, former president Oliver H. Smith had come to terms on a through-line agreement with a rail line being built between Columbus OH and Union IN – the Columbus, Piqua and Indiana Railroad [CP&I]. When completed, this important link would provide a connection to lines extending toward Pittsburgh, and on to Philadelphia over one of the growing trunk line giants: the Pennsylvania Railroad.

image of Oliver H. Smith
Oliver H. Smith, courtesy of the Indiana Historical Society.

As part of through-line negotiations to coordinate schedules and share facilities, the CP&I had acceded to Smith’s demand that it petition Ohio’s legislature to build to the I&B’s ‘standard’ gauge. It soon received a legislative exemption and began building. However, the CP&I met financial headwinds almost immediately – most notably from the Pennsylvania Railroad, which failed to meet its guarantee commitment when the company defaulted on construction bonds. Unfortunately, following bankruptcy reorganization, the CP&I would not complete construction to Union until 1859.

From the I&B’s perspective, the CP&I’s financial problems and construction delays seemed insurmountable. In contrast, the temptation to avail itself of lucrative east-west business across the combination of Ohio gauge B&I and CC&C lines proved irresistible. Under cover of a finely crafted resolution to skirt its through-line agreement with the CP&I, the I&B board resolved to lay track using the Ohio gauge as “other circumstances and relations for the welfare of the Road may require.” Under this guise, by the summer of 1853, it had re-laid track between Union and Muncie to the “Ohio gauge”.

Given this developing situation, the CP&I felt compelled to act. It successfully sought a preliminary injunction to block further track/gauge conversion. The Bee Line was effectively stymied in its effort to achieve a uniform gauge run from Cleveland to Indianapolis. Although the I&B argued the 1852 through-line agreement was silent on the CP&I’s track conversion accord, Smith’s apparent sidebar pact proved compelling to the court. I&B president John Brough, backed by a new board replete with Clique members, was directed to move decisively to resolve the problem in late summer 1853. It proved to be a particularly costly settlement.

Together, all component roads of the Bee Line agreed to guarantee the CP&I’s performance on $400,000 of bonds issued to complete the road to Union. Beyond eventually finding themselves on the hook for this issue, the Bee Line roads would provide another, and then another tranche of funding by the time the CP&I limped into Union in 1859. At least the I&B could now finish its Ohio gauge track conversion between Muncie and Indianapolis. And, under terms of the settlement, the CP&I also re-laid its track to the Ohio gauge.

Winding up the CP&I lawsuit had been a prerequisite to inking a Cleveland Clique-initiated through-line agreement among all Bee Line component roads. The day after securing the CP&I settlement, the Bee Line’s through-line agreement was signed. There were two telling provisions that spoke to the different vantage point of the Cleveland Clique and Hoosier Partisans.

Map of midwestern railroads c1860, annotated to show Bee Line component railroads and intersecting rail lines to Pittsburgh
Map of the Bee Line component railroad: I&B, B&I in blue, CC&C in red; lines to Pittsburgh in brown: CP&I to S&I/P&S, O&P, courtesy of Erin Greb Cartography.

On the one hand, the agreement allowed the B&I and I&B to make “fair and eligible connections and business arrangements . . . to secure . . . their legitimate share of the business between the cities of Philadelphia, Pittsburgh and Indianapolis.” While this clause provided a degree of freedom for the Hoosier Partisans and their Ohio counterpart to step away from their CC&C overseer, the other clause was engineered to reign in these independently minded stepchildren: “The B&I and I&B shall be consolidated at the earliest practicable moment.”

As to the latter clause, it would be easier for the Cleveland Clique to do its bidding if the Hoosier Partisans’ influence was diluted in a newly constituted board. At the same time, combining the two lines could prevent the Partisans from cutting their own agreement with the CP&I to carry traffic back and forth to Columbus and toward Pittsburgh via Union – totally avoiding carriage over the B&I and CC&C. And there was also a second option to reach Pittsburgh, via the Ohio and Pennsylvania Railroad (O&P) – passing near the B&I’s eastern terminus at Galion OH. Still, at the time, the Clique’s consolidation mandate only served to draw the two smaller lines more closely together in their common struggle for independent decision-making. As unfolded for the Cleveland Clique, however, its consolidation directive would not be accomplished easily or quickly.

image of David Kilgore
David Kilgore, from the author’s personal collection.

Squirming under the Clique’s dictate, and recognizing its strategic position as the funnel for rail traffic to and from Indianapolis to either Cleveland (and New York) or Pittsburgh (and Philadelphia), the I&B board served up its own subtle message. Essentially touting its option to bypass Cleveland through separate links to Pittsburgh, Hoosier Partisan David Kilgore proposed a name change “from and after the first day of February 1855. . . . The said Corporation shall be known by the name and style of the ‘Indianapolis, Pittsburgh and Cleveland Railroad Company’ [IP&C].” It was overwhelmingly adopted.

The name change really symbolized much more. The locally controlled and focused I&B railroad era was gone. The newly rechristened road would now test its wings as a regional player—hoping, like a teenager seeking freedom from parental control, to stand apart from the clearly parental CC&C.

Map of the proposed Mississippi and Atlantic Railroad route from excerpt of Map of the Bellefontaine and Indiana Railroad 1852
Map of the proposed route of the Mississippi and Atlantic Railroad. Excerpt from “Map of the Bellefontaine and Indiana Railroad and connecting lines” (W. Milnor Roberts, Chief Engineer: 1852). Courtesy of the Library of Congress.

Separately, in 1854, John Brough was ramping up his Mississippi and Atlantic Railroad [M&A] – destined to link Terre Haute and St. Louis. After an arduous legal effort to validate its claim to an Illinois charter, the M&A had prevailed against Chicago and Mississippi River town political interests earlier in the year. However, it would soon be faced with another trumped-up legal challenge and a concerted public relations effort to undermine its viability and management capabilities. Such obstacles were having a detrimental effect on Wall Street investors.

In March 1854 a legal opinion by Abraham Lincoln’s Illinois law office asserted the illegality of the M&A’s corporate existence. Then, a New York newspaper article questioned Brough’s managerial track record at the Madison and Indianapolis Railroad. The investor community was beginning to shy away from the M&A.

Nonetheless, with short-term funding secured, Brough pressed on with the M&A’s building phase. He issued a marketing circular and let contracts for the whole line by May, announcing the line would be completed by the summer of 1856. Brough would spend an increasing amount of time on this effort as 1854 wound down.

By the beginning of 1855 it was becoming clear Brough had the M&A on his mind. At the very least, the M&A’s pivotal role in the Cleveland Clique’s Midwest control strategy virtually mandated Brough’s full-time attention. Rumblings of his imminent departure reached IP&C board members by early February. He resigned as IP&C president on February 15, noting “experience has demonstrated to me that in this event my entire time and attention will be required on that [M&A] line.”

image of Calvin Fletcher
Calvin Fletcher, courtesy of the Indiana Historical Society.

Former I&B director (1852-53) Calvin Fletcher, among Indianapolis’ most prominent civic and business leaders, was elected president in Brough’s stead. Reluctantly thrust into the role, Fletcher noted, upon hearing of his election: “I learned to my regret I was appointed President of the Bellefontaine R.R. Co.”

Fletcher’s reticence to assume the post was understandable, based on his close familiarity with the affairs of the I&B. “I fear their affairs are desperate . . . It needed my character & acquaintance to unravel the mischief of the finances. . . . The president Brouff [Brough] has no influence on the road. All employees eschew his authority & claim that the Superintendent is the man to look to & not the President. The road & its business is [sic] in great confusion.”

image of James F. D. Lanier, c1877
James F. D. Lanier, Sketch of the Life of J. F. D. Lanier, self-published, 1877.
image of Chauncey Rose
Chauncey Rose, courtesy of the Indiana Historical Society.

Even though Brough was dealing with M&A matters full time beginning in mid-February 1855, the concerted efforts of powerful Chicago and Mississippi River town political interests had swept away investor confidence. James F. D. Lanier, the M&A’s financier through the Wall Street firm that bore his name – Winslow, Lanier & Co. – decided to take desperate action.

On May 20th the M&A board, controlled by Lanier, demoted Brough to Vice President in favor of Chauncey Rose. Rose, founder of the Terre Haute and Richmond Railroad linking Indianapolis with Terre Haute, assumed the presidential mantle. In spite of his impeccable reputation as a railroad executive, Rose’s presence failed to sway the investor community.

John Brough would not live to see the Mississippi and Atlantic Railroad completed to St. Louis. And, more to the point, how would the Cleveland Clique view Brough as their pawn in its broader Midwest railroad control strategy?

Check back for Part VI to learn more about the Hoosier Partisans move for autonomy as the Cleveland Clique tightened its grip on the Bee Line Railroad.

Continue reading “The Cleveland Clique’s Elusive Grasp for Control of the Bee Line Railroad”

The Cleveland Clique’s Bee Line Railroad Control Strategy to St. Louis: John Brough

See Part III to learn about how the Bee Line and other Midwest railroads reset, and sought to accomplish, their goal – to reach St. Louis.

Bee Line railroads map, excerpt from Bellefontaine and Indiana 1852 Railroad Map

Proposed Mississippi and Atlantic Railroad route map, excerpt from 1852 Bellefontaine and Indiana Railroad Map
Top: Map of the Bee Line component railroads. Bottom: Map of the proposed route of the Mississippi and Atlantic Railroad (both excerpts from “Map of the Bellefontaine and Indiana Railroad and connecting lines,” 1852, courtesy of the Library of Congress).

With John Brough’s elevation to the presidency of the Bee Line’s Indianapolis and Bellefontaine Railroad [I&B] segment – between Indianapolis and Union – on June 30, 1853, the Cleveland Clique was understandably euphoric. Brough’s newly arranged presidential authority there and at the Mississippi and Atlantic Railroad [M&A], about to begin construction between Terre Haute and St. Louis, personified the Clique’s growing regional dominance. By all appearances they, through the Cleveland, Columbus and Cincinnati Railroad (CC&C) and president Henry B. Payne, would soon control the key Midwest rail corridor linking the East Coast and the West.

At the same time, the closer-to-home Bellefontaine and Indiana [B&I] – linking the I&B at Union with the Clique’s marquee railway, the CC&C, at Galion OH – had already found itself under the financial sway of the Cleveland band.  Incredibly, the strategy to command a string of railroads tying St. Louis to the Eastern truck lines then breaching Ohio’s eastern boundary had been orchestrated by the CC&C’s Henry Payne in little more than two years.

image of John Brough, image of Henry B. Payne
(L) John Brough, courtesy of the Ohio History Connection. (R) Henry B. Payne, courtesy of the Library of Congress.

In the almost giddy atmosphere that prevailed following John Brough’s coronation, an impromptu trip was arranged. Why not visit Terre Haute, and the Illinois state line for that matter, and then travel in a single day from Terre Haute to Cleveland? It would underscore what the Clique had accomplished, provide an on-the-ground view of the new western terminus of the coordinated lines, and draw them closer to the independently minded stockholder/management team at the controls of the Terre Haute and Richmond Railroad [TH&R] – the only gap in the Clique’s string of pearls between Cleveland and St. Louis.

image of James H. Godman, image of Calvin Fletcher
(L) James H. Godman, courtesy of the Marion (Ohio) County Historical Society (R) Calvin Fletcher, courtesy of the Indiana Historical Society.

Members of the Cleveland Clique along with president James H. Godman of the B&I, newly minted I&B president John Brough as well as board member Calvin Fletcher and secretary Douglass Maguire boarded a special train destined for Terre Haute on July 1st. It had been less than twenty-four hours since the Clique’s I&B annual meeting coup. None of the original I&B Hoosier board members went along for the ride.

In one respect the trip was a success. They drank brandy and wine with Samuel Crawford, president of the TH&R, supped together and made it to a symbolic bridge spanning the Wabash—peering across wide stretches of western Indiana farmland toward Illinois. Truman P. Handy and William Case, board members of the Cleveland Clique’s cornerstone CC&C railroad, continued on to the Illinois line by horse and returned to Terre Haute by 3 a.m. Now they could boast of having made it from the Illinois line to Cleveland in a single day.

image of Truman P. Handy, image of William Case
(L) Truman P. Handy, Biographical Cyclopedia and Portrait Gallery of the State of Ohio, Vol 2. (Cincinnati: John C Yorston & Co, 1880). (R) William Case, courtesy of Cleveland Public Library.

A private train left Terre Haute before dawn on July 2nd. It ran at a blistering thirty miles per hour until hitting a cow near Belleville—knocking the engine and car off the track. It was a near-death experience, as Calvin Fletcher recounted. Still, they were in Indianapolis by 6:30 a.m.

Fletcher did not record whether they accomplished the lofty goal of making it to Cleveland that day, as he remained in Indianapolis. All the same, except for the lack of participation by original I&B board members, it had been a notable start to John Brough’s presidency – and provided a glimpse of the Clique’s mechanism for expansion. The Hoosier Partisan’s absence would prove to be a telling sign of issues looming ahead.

Two weeks later Calvin Fletcher was among a sizable number of Indiana business and political nobility who, along with their spouses, received an invitation from the Cleveland Clique. The request was to join them for an all-paid junket to Niagara Falls. “I had an invitation with our citizens, those of Lafayette, Crawfordsville, Terre Haute, Dayton, Cleveland, Bellefontaine &c…a number have an invitation here.”

image of Daniel Yandes, image of David Kilgore, image of Thomas A. Morris
(L) Daniel Yandes, courtesy of the Indiana Historical Society. (M) David Kilgore, author’s personal collection. (R) Thomas A. Morris, courtesy of the Indiana Historical Society.

Hoosier Partisans Alfred Harrison, Daniel Yandes and David Kilgore as well as ubiquitous Indiana railroad construction engineer and soon to be I&B board member Thomas A. Morris were among the throng. They all boarded a special train awaiting them in Indianapolis on the morning of July 20th. In his diary, Calvin Fletcher would capture both the spectacle of the excursion and the travails of travel during this era.

Map of railroads between Indianapolis to Niagara Falls, annotated to show 1853 excursion route.
Map of Cleveland Clique junket from Indianapolis to Niagara Falls, over the Indianapolis and Bellefontaine, Bellefontaine and Indiana (both in red), Cleveland, Columbus and Cincinnati (blue), by ship to Buffalo (orange dash), and rail to Niagara Falls (orange). Cities visited in colored rectangles. Courtesy of Erin Greb Cartogarphy.

The conductor to Union was none other than Fletcher’s recently hired son Stoughton Jr., who helped the party around a derailed freight train along the way. They arrived at Union about 10:30 a.m. Connection delays added to a tardiness that precluded the Hoosier contingent from stopping at Marion, Ohio, for a B&I board–arranged dinner. Instead, they raced on to Galion to connect with CC&C cars coming from Columbus. The crowd reached Cleveland at 7:30 p.m., only to find the boat hired to take the assembled masses to Buffalo had broken down.

image of Cleveland Railway Station and Docks, 1854
Cleveland Railway Station and Docks, 1854. (James Harrison Kennedy, A History of the City of Cleveland: Its Settlement, Rise and Progress 1796-1896. Cleveland: Imperial Press, 1896.)

Because the politicians of Erie, Pennsylvania had made smooth rail travel between Cleveland and Buffalo nearly impossible during the early 1850s, going by this route was not a viable option. To force passengers and freight to overnight in Erie, city fathers had mandated different track ‘gauges’ (the lateral distance between iron rails) for railways entering/leaving the city from the east and west. The Erie “war of the gauges”, in combination with intentionally and poorly synchronized railroad schedules, wreaked havoc on passengers and shippers alike. Erie thrived on this senselessness until 1855, during which time near-riots by local merchants and warehouse workers nearly scuttled a move to finally synchronize schedules and re-lay rails to a uniform gauge.

It was midnight before more than 750 passengers stranded in Cleveland boarded a replacement vessel to Buffalo – arriving the next day at noon. There, a train of nearly fifteen cars met the ship and whisked its guests the final miles to Niagara Falls. They took in the falls and were awestruck by the engineering feat of the recently completed railway suspension bridge traversing the Niagara River. The revelers were then ferried behind the tumultuous sheets of water before dinner and a moonlit trip to Goat Island. The excursion lasted less than twenty-four hours. On the return boat trip to Cleveland the assembled guests lunched, ironically, at Erie, Pennsylvania.

image of Niagara Railway Suspension Bridge, c1876
Postcard image of the Suspension Bridge across Niagara Falls circa 1876, courtesy of the Library of Congress.

That evening Cleveland’s mayor hosted what Fletcher referred to as a “soirée” of dinner, music, and speeches. He called it “a most splendid affair that I ever witnessed.” As might have been expected, newspaper editors and writers had been invited gratis. They clearly earned their passage by publishing effusive articles in the regional and national press.

The editor of the Indianapolis-based Locomotive gushed: “We have never taken an excursion with which we were so well pleased. Every arrangement was made in princely style for the accommodation of the invited guests; and everything free as air, from our railroad bills down to our omnibus bills, including hotels and everything necessary.” It had proved to be the most incredible public relations feat of its day.

Finally, on the return leg from Cleveland to Indianapolis, the B&I board hosted the earlier-deferred dinner party at Marion, Ohio. Toasts were exchanged, a “three cheers” shouted, and the Hoosiers were off to Union the next morning. There they waited an hour for connecting passengers coming from Cincinnati. Exhausted, the entourage supped at Muncie and finally arrived back in Indianapolis by 11 p.m.

Still, for the people of the era, it had been both an awe-inspiring event and a technological marvel. To the parochial Hoosier Partisans, it brought home the sobering reality that the Cleveland Clique outgunned them financially and politically. The sheer number of interconnected board, business, banking, and government relationships represented at the Cleveland festivities was astounding. And they had gathered with a single purpose: to focus their wide-ranging powers on dominating the Midwest rail corridor between Cleveland and St. Louis.

The I&B, basking in the afterglow of this landmark event, which drew investor attention to its pivotal role as a funnel for traffic from Ohio to Indianapolis, saw its stock and bond prices jump. Nonetheless, Calvin Fletcher decided to sell all but $5,000 of his stock in August. He found a ready market: “I distributed among my friends who seemed to want it & one demanded, as a matter of right as I had offered to others, that he should have a portion. The stock soon fell & it was fortunate I let it go.”

Fletcher’s unemotional view was sprinkled with a candid and ominous reality, however: “Brough the president has failed to establish his right to go through to St. Louis straight. This I think will effect [sic] the road materially.” And he was right.

Whatever the reason for the I&B’s price bounce, it did not reflect the financial or business reality with which John Brough and the Cleveland Clique were faced.  Brough’s usefulness to the Cleveland Clique appeared, for the moment, to be in question.

Check back for Part V to learn more about how the Cleveland Clique turned their attention to binding the various component parts of the Bee Line together both physically and legally – to the irritation of the Hoosier Partisans.

Continue reading “The Cleveland Clique’s Bee Line Railroad Control Strategy to St. Louis: John Brough”

The Bee Line and Midwest Railroads reset their goals – to St. Louis: Gateway to the West!

See Part II to learn about the Bee Line’s financing dilemma – the loss of control to the Cleveland Clique and Wall Street.

Advertisement, California, Gold Rush, circa 1850
Advertisement for ships to California during the Gold Rush, circa 1850.

Gold! In January 1848 gold was discovered at Sutter’s Mill in California. The Gold Rush had begun. And with it, the nation turned its gaze to the West.

image of John Brough
John Brough, courtesy of the Ohio History Connection.

The Bee Line and other Midwest railroads would also reset their goals – to reach Chicago or St. Louis: Gateway to the West. And for John Brough, president of the Madison and Indianapolis Railroad [M&I], the prospects were particularly tantalizing. While he had already begun to implement a strategy to extend the M&I’s control to the potentially lucrative Indianapolis and Bellefontiane Railroad [I&B] building toward the Ohio state line, the thought of constructing and controlling a line to St. Louis was pure gold.

Midwest Railroads Map, circa 1860, showing the Madison and Indianapolis [M&I], Terre Haute and Richmond [TH&R], and component roads of the Bee Line: Cleveland, Columbus and Cincinnati [CC&C]; Bellefontaine and Indiana [B&I]; Indianapolis and Bellefontaine
Midwest Railroads Map, circa 1860, showing the Madison and Indianapolis [M&I], Terre Haute and Richmond [TH&R], and component roads of the Bee Line: Cleveland, Columbus and Cincinnati [CC&C]; Bellefontaine and Indiana [B&I]; Indianapolis and Bellefontaine [I&B], courtesy of Erin Greb Cartography.
A Cleveland Clique of connected businessmen, politicians and railroad investors had already struck gold of their own. The opening of the Midwest’s first regional railroad in 1851 between Cleveland and Columbus – the Cleveland, Columbus and Cincinnati Railroad [CC&C] – had proved to be successful beyond their most optimistic expectations. They began to consider expanding their reach, not by building, but by buying or controlling the purse strings of other roads headed west . . . to Cincinnati, Indianapolis . . . and St. Louis.

image of Chauncey Rose
Chauncey Rose, courtesy of the Indiana Historical Society.

John Brough’s strategic and financial needs were more immediate, as the M&I’s business calculus began to wane. One of Brough’s peers on the Indianapolis Union Station’s Indianapolis Union Railway board, Chauncey Rose of Terre Haute, had already assembled a circle of businessmen from Indiana’s largest town west of Indianapolis. In 1847, along with Rose’s New York-based financier brother John, they had gathered the funds necessary to construct the first leg west from Indianapolis toward St. Louis: the Terre Haute and Richmond Rail Road [TH&R]. It would be renamed the Terre Haute and Indianapolis Railroad [TH&I] by 1865, to more accurately reflect its final route.

Importantly, the Rose brothers also insured the Terre Haute circle would retain substantial financial control in spite of tapping into the newly available public markets of Wall Street. They would control their own financial destiny, unlike nearly all other Midwest railroads, until well into the 1870s. On February 14, 1852 the first train completed the entire seventy-three mile trip to Indianapolis. The line proved to be the juggernaut for rail travel to St. Louis and the West via Indianapolis.

Railroads west from Indiana, including the Terre Haute and Richmond [TH&R], Ohio and Mississippi [O&M], Mississippi and Atlantic [M&A], and St. Louis, Alton and Terre Haute [StLA&TH]
Railroads west from Indiana, including the Terre Haute and Richmond [TH&R], Ohio and Mississippi [O&M], Mississippi and Atlantic [M&A], and St. Louis, Alton and Terre Haute [StLA&TH], courtesy of Erin Greb Cartography.
Rose and Brough were running into obstacles, both political and economic, in organizing a rail line spanning the unpopulated expanse of Illinois to St. Louis. While Rose initially focused on indirect connections via Vincennes and the nearly complete Ohio and Mississippi Railroad [O&M] extending across the southern third of Indiana and Illinois, Brough had a different plan. He would leverage on an 1846 Illinois charter – then moribund – for a direct route between Terre Haute and St. Louis through the former state capital (1820-1840): Vandalia. In 1850 Brough teamed with Vandalia business and political leaders – as well as James F. D. Lanier’s Wall Street firm of Winslow, Lanier & Co. – to resurrect the charter as the Mississippi and Atlantic Railroad [M&A]. He soon became its president.

James F. D. Lanier, Sketch of the Life, 1877
James F. D. Lanier. Sketch of the Life of J. F. D. Lanier (self published, 1877).

Brough’s venturesome efforts to reach St. Louis did not go unnoticed by the Cleveland Clique. It comported with the Clique’s and Henry B. Payne‘s (then president of the CC&C) vision for reaching and controlling lines to the West. And since Winslow, Lanier & Co. and the Cleveland Clique were already digging their financial talons into the two Bellefontaine lines that would soon carry the publicly-dubbed Bee Line moniker, the collective financial support for Brough’s effort was assured. Along with Brough’s M&I, the component Bee Line roads anted up several hundreds of thousands of dollars in spite of the tenuous financial footing of all except the CC&C – courtesy of the Clique’s urging and Lanier’s financial wizardry or skullduggery.

But Brough was having other problems. As the M&I revenue picture darkened, the I&B’s brightened. Now connected with the Bellefontaine and Indiana [B&I] and CC&C to reach Cleveland, the I&B’s passenger and freight revenue per mile spiked during the first year of through service in 1853. In addition, new traffic carried between Indianapolis and Cincinnati – via a connection at the increasingly critical junction town of Union – translated into booming business along the band of steel known as the I&B.

Oliver H. Smith
Oliver H. Smith, courtesy of the Indiana Historical Society.

Even before the I&B reached Union, however, the M&I was having trouble meeting its obligations under the five year operating contract the two had inked in 1850. The M&I’s inability to supply and maintain a sufficient number of locomotives and cars capable of handling the increasing traffic across the partially completed I&B was obvious. By the summer of 1852, I&B president Oliver H. Smith had initiated a series of discussions with Brough to recast the arrangement. Brough’s stance was adamant, as Smith reported: “They [M&I] claimed by resolve to run the whole Road for the time specified.” But Brough’s ego did not reflect the reality of his situation.

The Bellefontaine and Indiana’s “Sidney” Locomotive, built by Niles & Co., 1853 (rebuilt 1856)
The Bellefontaine and Indiana’s “Sidney” Locomotive, built by Niles & Co., 1853 (rebuilt 1856), courtesy of New York Central System Historical Society.

At the same time, Smith approached the I&B board with specific proposals to purchase additional rolling stock and motive power equipment. He also proposed building machine shops, an engine house and depot buildings. Smith mapped out a game plan to finance the expansion. It would require selling stock and/or floating $150,000 of bonds on Wall Street. Board member Calvin Fletcher reflected the Hoosier Partisans’ growing concern about Smith: “It was doubted by myself & others whether the Embassader [sic] intended had the qualifications to act in the matter.” Newly dominant shareholders Daniel Yandes and Alfred Harrison would handle the funding question.

image of Calvin Fletcher
Calvin Fletcher, courtesy of the Indiana Historical Society.

Things were coming to a head on many fronts. At the I&B board meeting in February 1853 a resolution was passed to terminate the M&I operating agreement effective May 1st, more than two years earlier than anticipated. The M&I and Brough were becoming an afterthought.

Then, in March, Oliver Smith challenged the I&B board to endorse his continued presidency. Given his intransigence on moving the Indianapolis depot closer to the new Union Station – for personal business reasons – Smith’s demand fell on deaf ears. Waxing eloquent, Calvin Fletcher penned a response on behalf of the Hoosier Partisans: “We have no doubt, from your standing in this country . . . that you can do for yourself and the country much better than to remain the President of the said Road.” Smith would resign the presidency on April 6th.

On hearing of the I&B’s bold move to terminate its operating contract with the M&I, Brough was beside himself. As May 1st arrived, Fletcher was concerned, noting “Did not sleep very well having been notified that the M&I would not permit the I&B to have possession & that they would defend with force & arms.” Fortunately, cooler heads prevailed during daylong meetings between Brough, Yandes, Harrison and Fletcher. The next day the operating contract was dissolved.

image of The Madison and Indianapolis Railroad [M&I] and involved roads: the Peru and Indianapolis Railroad [P&I], extending north from Indianapolis, and the Mississippi and Atlantic Railroad [M&A], extending west to St. Louis. Terre Haute and Richmond [TH&R]
The Madison and Indianapolis Railroad [M&I] and involved roads: the Peru and Indianapolis Railroad [P&I], extending north from Indianapolis, and the Mississippi and Atlantic Railroad [M&A], extending west to St. Louis. Terre Haute and Richmond [TH&R] also shown, courtesy of Erin Greb Cartography.
Adding insult to injury, Brough’s strategy to tighten the M&I’s grip on a second railroad heading north from Indianapolis – the Peru and Indianapolis [P&I] – was also in peril. While a combination with the M&I would be effected in 1853 as the Madison, Indianapolis and Peru Railroad, it unwound the next year. E. W. H. Ellis, president of the Peru and Indianapolis Railroad, lamented upon the dissolution of the combination: “It is to be regretted that, in the days of its [M&I’s] prosperity, the road, its rolling stock and machinery, were permitted to run down and that these heavy burdens are thrown upon the company.” The I&B was already wise to the M&I’s deficiencies.

Still, the prospect of Brough’s push to St. Louis seemed all but certain. Winslow, Lanier & Co. had successfully attracted adequate funds to begin letting construction contracts. The Mississippi and Atlantic Railroad [M&A] had overcome political obstacles thrown in its path by an alliance of Chicago and Mississippi River town interests. They much preferred a route to a smaller river town, on Illinois turf, just north of St. Louis. Much like Indiana’s push to establish Madison as its improbable center of commerce on the Ohio River, against all odds Illinois opted to create Alton as its alternative to St. Louis along the Mississippi River.

Henry B. Payne, courtesy of the Library of Congress.

To the Cleveland Clique and CC&C president Henry B. Payne, Brough’s progress in establishing and constructing a direct line to St. Louis, in the form of the M&A, was a dream come true. Controlling this line as well as the Bee Line would solidify the Clique’s plan for the West. And, as his tenure at the M&I grew tenuous, Brough would find Payne’s forthcoming offer incredibly attractive.

To the shock of the Hoosier Partisans, Brough was elected president at the I&B’s annual meeting on June 30, 1853. He was now at the head of three roads simultaneously: the M&I, M&A and I&B. Fletcher’s observations on Brough’s election summed up the feelings of the Hoosier Partisans: “In order to carry out the design we had to take Mr. Brough as president who had acted for the Madison RR . . . where interest . . . adverse to the I&B created a hostility to him. But it was obvious that we had to forgo the objection & take him.” It was not an easy pill to swallow for the Hoosier Partisans.

While it may not have been obvious at that point, the Hoosier Partisans’ decision to accept funding from the CC&C and Winslow, Lanier & Co. – let alone seeking counsel from the Cleveland Clique – would be fraught with long-term consequences.

Check back for Part IV to learn more about the fate of the Mississippi and Atlantic Railroad, and the related destiny of John Brough with the Bee Line – under influence of the Cleveland Clique.

Continue reading “The Bee Line and Midwest Railroads reset their goals – to St. Louis: Gateway to the West!”

The Bee Line Railroad Financing Dilemma: Loss of Local Control

Indianapolis and Bellefontaine Railroad 1853 advertisement-schedule
Indianapolis & Bellefontaine RR train schedule, printed in Calvin Fletcher’s diary, courtesy of the Indiana Historical Society.

See Part I to learn about the origins of the Bee Line and the men who brought it to life.

The Bee Line Railroad almost never was. At the dawn of the Midwest railroad era Hoosiers were slow to embrace what became the technological marvel of the 19th century. Dependent on state funds or newly emerging Wall Street for cash, initial railroad financing prospects looked dim. Instead, canals were the preferred method of transportation in the mind of the public.

The State of Indiana began planning for a litany of “internal improvements” from its inception in 1816.  In his 1827 message to the General Assembly, Governor James B. Ray (1825-1831) admonished the legislators, noting that railways could convey “equal burdens to any that can be transported on a Canal . . . and with double the velocity.” However, at the time, the legislature was not moved by his argument.

Indiana Governor James B Ray and Wall Street financier James F. D. Lanier
(L) Governor James B. Ray, courtesy of the Indiana Historical Society (R) James F. D. Lanier, Sketch of the Life of J. F. D. Lanier (self-published, 1877).

Finally, as interest in railroads began to percolate by 1832, legislators approved charters for eight – including the Madison, Indianapolis and Lafayette Rail-Road Company. Prominent among its board members was Madison banker James F. D. Lanier, destined to become the leading Wall Street financier of virtually all Midwest railroad era lines during the mania of the 1850s, including the Bee Line.

More than thirty Indiana railroads were chartered between 1832 and 1838. Nonetheless, attempts to lure private capital via stock subscriptions fizzled. Only a mile and a quarter of experimental track had been laid near Shelbyville by the end of the decade.

Madison and Indianapolis Rail Road 1850 Annual Report Cover
Annual Report Cover, Madison and Indianapolis Rail Road Company, 1850, courtesy of the Indiana State Library.

Indiana’s infatuation with canals was reflected in the Mammoth Internal Improvements Act of 1836, which appropriated one-sixth of the state’s wealth for the effort. Of eight state projects funded, only one was for a railroad – what became Indiana’s first: the Madison and Indianapolis Railroad [M&I].

Much of the debt to fund these efforts was taken up by the financial barons and financiers of Europe. Rolling mills and metal fabricators in the United Kingdom (UK) were then seeking new markets for their locomotive and rolled rail products. American manufacturers capable of producing such articles were only just beginning, as the Industrial Revolution reached its peak in Europe a full generation before doing so in the U.S. It became a mutually dependent relationship through the 1850s: English products for American dollars.

By the early 1840s Indiana’s failed internal improvements push had become obvious. The state called on Lanier to extricate it from near financial ruin. Before Lanier sailed to Europe in 1847 to negotiate Indiana’s financial exit plan, it had already jettisoned its canal and railroad holdings.

Beyond his success ensuring the state’s survival, Lanier returned from Europe with the confidence of the barons of Continental and English finance. Since the UK was America’s primary source for finished iron rails until the Civil War, the importance of such developed trust was pivotal. These relationships became the cornerstone of Lanier’s success as the Midwest’s preeminent member of Wall Street’s new financial sector: investment banking.

Wall Street Investment House floor circa 1865
Wall Street Investment House, circa 1865.

As part of its privatizing move in 1842, the Indiana legislature had authorized the M&I to borrow money and issue bonds to complete the line to Indianapolis not later than 1848. In his role on the M&I’s reconstituted board, Lanier orchestrated placement of $50,000 (in 1845) and $100,000 (in 1846) of private bonds through the Wall Street firm which would soon bear his name: Winslow, Perkins & Co.

With funds in hand, the M&I finished the final fifty-six miles of track to Indianapolis by October 1847, at a cost of $628,000. Daniel Yandes, subsequently the Indianapolis and Bellefontaine Railroad’s primary stockholder, had won a bid to construct ten miles of the road. The whole task was finished nearly a year before its targeted completion date. In comparison, as a state-run company, it had taken seven years and over $1.5 million to lay the line’s first twenty-eight miles.

The M&I’s Wall Street firm of Winslow, Perkins & Co. began to weigh in on the railroad’s managerial approach after suffusing it with cash. It foretold the more active role financiers would take in operational decision-making of businesses they were funding. To that end, a new president arrived at the M&I in August 1848: John Brough of Ohio, whose life would revolve around the Bee Line railroad.

John Brough image
John Brough. Courtesy of the Ohio History Connection.

Brough had been a youthful and powerful member of Ohio’s legislature. As a freshman legislator at the age of 26, he chaired the Committee on Banks and Currency. Subsequently he was chosen the state’s auditor, a position he held until 1845. Brough had come to Madison, Indiana from Cincinnati, after a three year stint with his brother running the emerging Cincinnati Enquirer newspaper.

By the time Brough issued his first report to shareholders in January 1849, the newly christened Wall Street financial firm of Winslow, Lanier & Co. held more than $92,000 of M&I cash equivalents. Both Merssrs. Winslow and Lanier held positions on the board of directors.

Wall Street was fast becoming the financial clearinghouse for matching Eastern Seaboard and European investors with Midwest railroad securities. A new class of private bankers arose, backed by European firms, which began to serve as investment middlemen. These newly coined “investment bankers” evaluated the quality of securities, served as investment advisers to individuals with surplus capital, acted as financial agents for the railroads, and frequently took investment positions themselves. They also allocated investment capital among the many railroads seeking cash infusions.

Map of Midwest Railroads, with Madison and Indianapolis, Indianapolis and Bellefontaine, Bellefontaine and Indiana, and Cleveland, Columbus and Cincinnati railroads annotated in color
Map of Midwest Railroads, with the Madison and Indianapolis [M&I], and Bee Line component lines: Indianapolis and Bellefontaine [I&B], Bellefontaine and Indiana [B&I], and Cleveland, Columbus and Cincinnati [CC&C] annotated in color. Courtesy of Erin Greb Cartography.
Initially, Brough developed a strategy to build, invest in, or otherwise secure favorable operating agreements with a planned web of railroads radiating from Indianapolis. And invest he did. The M&I, Brough reasoned, would gather agricultural goods from the southern two-thirds of Indiana and funnel them via Indianapolis to Madison for transport on the Ohio River.

To assure its dominant position, Brough used his politically powerful board to block a railroad charter for a rail line headed from Indianapolis toward Cincinnati (Lawrenceburg). He also rejiggered timetables to prevent convenient connections over a newly chartered branch line extending toward Louisville (Jeffersonville) from Columbus, Indiana.

David Kilgore image
David Kilgore, from the author’s personal collection.

David Kilgore, director of the 1848-chartered Indianapolis and Bellefontaine Railroad [I&B] – first leg of the Bee Line extending from Indianapolis to the Ohio state line – noted Brough’s aggressive, anti-competitive tactics: “now they would put their feet upon the neck of competition . . . And why? . . . Rival interests are springing up at other points, and if they can be crippled, so much the better for this city [Indianapolis] and Madison.” It would not be long, however, before Brough would prove unable to stem the tide of competition.

Brough’s involvement planning Indianapolis’ Union Station in the early 1850s, with M&I’s investment in the Indianapolis Union Railway Company, yielded insights about the financial health and intentions of other lines terminating there. Unfortunately for him, in 1851 Indiana’s new constitution was adopted, including a mandate to craft general incorporation laws. No longer would special charters be required to form new railroads. It signaled the end of the M&I’s political agility to stifle competition.

Indianapolis Union Station image circa 1906
Indianapolis Union Station, circa 1906, courtesy of the Indiana Historical Society.

As a result, Brough shifted strategies. He now sought to make two of the newborn and financially anemic lines dependent on the M&I. Brough would set his sights on the Indianapolis and Bellefontaine, building northeast from Indianapolis. It was already making plans to connect with roads angling to another key center of economic growth: Cleveland. And with the help of Lanier and his Wall Street firm, the lure would prove to be almost irresistible.

Cleveland Railway Station and Docks 1854
Cleveland Railway Station and Docks, 1854 (James Harrison Kennedy, A History of the City of Cleveland: Its Settlement, Rise and Progress 1796-1896. Cleveland: Imperial Press, 1896).

To the surprise of investors, as well as the Indianapolis and Bellefontaine’s board, costs of funding construction and operation of the new railroad had been grossly underestimated. Without access to substantial credit facilities, motive power equipment, rolling stock, iron rails and operating personnel, the I&B was going nowhere. There to “help” was Brough and Winslow, Lanier & Co.

The M&I, as orchestrated by Brough, guaranteed newly issued I&B bonds that Lanier had floated.  Now, it could purchase the M&I’s surplus iron rails, and lease its motive power and rolling stock equipment. The basis of the bargain was a lucrative five-year operating agreement, which commenced in 1850. The M&I would not only supply all personnel, but also collect and distribute ticket and freight receipts, paying itself from the proceeds it handled.

Whose railroad was it anyway? By the time the I&B started partial service between Indianapolis and Pendleton in 1851, the railroad was the Indianapolis and Bellefontaine in name only. It was all as Brough had planned.

image of Henry B Payne, president of Cleveland, Columbus and Cincinnati Railroad 1851-1854
Henry B Payne, courtesy of the Library of Congress.

There was another important aspect of the new line’s financial health. By 1853, when the I&B commenced service all the way to Union, the dominant regional player – the Cleveland, Columbus and Cincinnati Railroad [CC&C] through its president Henry B. Payne – had loaned the I&B and its sister Bellefontaine and Indiana line in Ohio a combined sum of over $100,000.

Thus, no sooner had the smaller combined Bellefontaine lines, now known collectively as the Bee Line, begun full service than they began to lose a grasp on their own destiny. Pulling the financial strings were John Brough, James F. D. Lanier, and a Cleveland Clique of businessmen and bankers headed by Henry B. Payne, then at the controls of the CC&C. The resulting tug of war between the Cleveland Clique and Hoosier Partisans for control of the Bee Line would continue throughout the 1850s.

Map of the Madison and Indianapolis, Indianapolis and Bellefontaine, Mississippi and Atlantic, Terre Haute and Richmond railroads annotated
Map of the Madison and Indianapolis [M&I] and involved lines: Indianapolis and Bellefonatine [I&B] and Mississippi and Atlantic [M&A] annotated in color, as well as the Terre Haute and Richmond [TH&R]. Courtesy of Erin Greb Cartography.
But Henry Payne and the Cleveland Clique had other aspirations as well. Controlling rail lines all the way to St. Louis would cement its dominant role among Midwest railroads. And John Brough, recognizing the need for the M&I to control other railroads heading to more viable destinations, had – with the help of James Lanier – already turned his gaze to St. Louis.

Check back for Part III to learn more about John Brough and the Cleveland Clique’s pivotal play to reach St. Louis, as well as the resulting impact on the Bee Line and its Hoosier Partisans.

Continue reading “The Bee Line Railroad Financing Dilemma: Loss of Local Control”

The Bee Line Railroad: At the Dawn of the Midwest Railroad Era

Bee Line Train, Bellefontaine Railway 1864
A Bee Line Train; Bellefontaine Railway 1864 Annual Report Cover. Courtesy of the Indiana State Library.

On May 11, 1848, as the Midwest railroad era dawned, Connersville-based former Indiana Congressman and Senator Oliver H. Smith took to the podium in Indianapolis: “The time has now come when central Indiana has to decide whether the immense travel, emigration, and business of the west should pass round or go through central Indiana…and not force them round by either Cincinnati on the east, or Chicago on the north.”

Smith, who had also sponsored a bill to extend the National Road through Indiana during his Congressional term in 1828, foresaw the potential economic synergies in linking Midwest railroads from the heartland with East Coast markets. Now, its citizens would need to make the financial investment to make it happen. And the mechanism to ignite this explosive rush was not a rutted path or canal, but a new form of transportation in the Midwest: a railroad. It would be among Indiana’s first.

By July, Smith had tallied the necessary stock purchase commitments or “subscriptions” to incorporate the railroad destined to link Indianapolis to Cleveland on one end, and to St. Louis on the other. In legal terms, it was called The Indianapolis and Bellefontaine Railroad [I&B], extending 83 miles northeast from Indianapolis to an undefined location in the wilderness along the Ohio state line.

Soon, it connected with two others Ohio railroads to reach Cleveland – one with a confusingly similar name: The Bellefontaine and Indiana Railroad [B&I]. The other was already the regional powerhouse that soon financed, controlled and finally swallowed the other two: The Cleveland, Columbus and Cincinnati Railroad [CC&C]. But to the traveling public the complete or partial string of railroads linking these economic centers became known as the Bee Line – like a bumblebee’s nearly straight-line path between these two cities.

Bee Line Railroad, circa 1860
Route of the Bee Line Railroad, circa 1860. Courtesy of Erin Greb Cartography.

The pedigree of Smith’s first board of directors read like a Who’s Who of eastern Indiana politicians and business leaders. Because the bulk of initial stock subscriptions came from county boards through which the line would pass, representatives from Marion, Hancock, Madison, Delaware and Randolph counties populated the first board.  Many were closely affiliated with Oliver Smith in terms of shared political and legal careers – such as Jeremiah Smith of Randolph County and David Kilgore of Delaware County.

Indianapolis & Bellefontaine Railroad route, circa 1855
Route of the Indianapolis & Bellefontaine Railroad, circa 1855. Reprinted from Map of Indiana. New York: J. H. Colton & Co., 1855. Courtesy of Ball State University Libraries, GIS Research and Map Collection (annotated by Erin Greb Cartography).

The two Smiths had met in the mid 1820s when both served as state and county prosecuting attorneys. Oliver appointed Jeremiah to chair the Indianapolis and Bellefontaine’s committee to locate its eastern terminus somewhere along the Ohio state line. Once determined, the Smiths moved quickly to capitalize on their insider information. They purchased the land and platted what shortly became known as Union – today’s Union City. Jeremiah in particular would profit handsomely, as Union became a key Midwest railroad junction town by the mid 1850s.

And because early railroad companies did not allow locomotives or rail cars to travel beyond their geographic/corporate boundaries, Union bustled with activity. Oliver Smith rationalized that the avoidance of potential accidents and repairs to cars sent out of state “would more than counter balance any inconvenience growing out of transfers at the State Line, from one line to another.” One can only guess the passengers’ reaction to this rationale, as they were often forced to stay overnight at Union’s Branham House hotel awaiting an onward train.

Oliver and Jeremiah Smith
(L) Oliver H. Smith. Courtesy of the Indiana Historical Society. (R) Jeremiah Smith. Courtesy of the Preservation Society of Union City.

David Kilgore, on the other hand, had been active with Oliver Smith in Indiana Whig politics. They often served as lawyers on the same case, and grew close as Smith purchased the land and platted Kilgore’s Yorktown hometown in 1837. Kilgore owned a parcel adjacent to Yorktown as well as a sizeable farm on the Indianapolis Road between Yorktown and Daleville. Conveniently, the Bee Line would slice through both parcels of Kilgore’s land – not to mention curving through Smith’s Yorktown.

David Kilgore
David Kilgore. From the author’s personal collection.

As prominent editor Henry V. Poor of the nationally renowned American Railroad Journal spouted about the route of the Bee Line: “the road undoubtedly should have been constructed on a direct line between Indianapolis and Union…why did he not take this line for the Bellefontaine road? Because he owned some property at Yorktown or Muncietown and curved the road to promote his private interests.” Railroading was about more than just railroading.

Daniel Yandes
Daniel Yandes. Courtesy of the Indiana Historical Society.

The opportunities for personal gain abounded in building the railroad as well. Nearly all of the directors gained lucrative contracts to supply ties for long stretches of the route, for building depots, and representing the Bee Line in right-of-way disputes. Then, as funding grew thin, Indianapolis entrepreneur Daniel Yandes and banker Alfred Harrison teamed up to finance and complete construction of the route from Chesterfield to Union – essentially taking stock and board control of Smith’s railroad even before the first train reached Union in 1853.

Oliver Smith’s eagerness to cut lucrative side business deals connected to the Bee Line ultimately proved to be his undoing. In 1853, Indianapolis led the country by constructing the nation’s first “Union Station“. Remarkably, until then, different railroads terminating in the same metropolitan center did not share a common station or depot. They would often be miles apart from each other. While good for local transportation companies, warehouses and hotels, it made little long-term business sense. Although the Indianapolis and Bellefontaine’s depot in the northeast corner of Indianapolis was the outlier among all others, Smith refused to place a machine or repair shop facility closer to Union Station.

Indianapolis Depots map, 1852
Indianapolis Depots Map, from SD King Map of Indiana, 1852. Courtesy of the Library of Congress (annotated by Erin Greb Cartography).

Calvin Fletcher, the highly-regarded Indianapolis civic leader and banker through whose land the Bee Line passed – and who assumed a board position in mid 1852 – took note of Smith’s rationale for resistance. Recounting the board issue in his diary, Fletcher observed: “The subject of removal of the Depo [sic] now built on the North East part of the town would be adjitated [sic]. This I knew would be extremely offensive to Mr. O.H. Smith…as he was, as I supposed, connected with Billy Young in the property in its vicinity.”

Calvin Fletcher
Calvin Fletcher. Courtesy of the Indiana Historical Society.

Smith was still laboring under the misimpression that his authority was all but absolute. He had clearly dismissed the board power shift that occurred the year before when Daniel Yandes and Alfred Harrison struck a stock payout deal to complete building the road to Union. The emerging Hoosier Partisans power group which grew to include Calvin Fletcher – whose board election they orchestrated – and David Kilgore, however, relegated Smith to the sidelines.  By the Spring of 1853 they accepted his resignation from the board of the railroad he had toiled to bring to life.

As was typical of early Midwest railroad boards, the Bee Line far underestimated the amount of capital required to bring such a massive undertaking to life. For early Midwest businessmen, financing and operating such large corporate organizations were matters of first impression. And with hard cash virtually non-existent, individuals could commit to purchase stock by pledging labor, materials or land. Such arrangements often left the railroad cash poor and unable to meet its obligations. County governments, with pushback from both its citizens and Indiana’s governor, had reached their limit as well.

Bee Line, Indianapolis, Madison, Railroad
Map of the Indiana portion of the Bee Line, and the Madison and Indianapolis Railroad circa 1860. Courtesy of Erin Greb Cartogarphy.

Fortunately for the Indianapolis and Bellefontaine and Indiana’s first railroad, the Madison and Indianapolis Railroad [M&I] (completed in 1847), their pressing mutual financial problems would be the solution for each. The M&I had a supply of unused rails, underutilized equipment, and a solid credit position – courtesy of its earlier birth as a state-run and funded railroad. But it was slowly diminishing in importance as its route to Indiana’s Ohio River port city of Madison could not rival the well establish and larger commercial cities just up and down river – Cincinnati and Louisville. And the situation became more acute when Indiana’s legislature allowed any group of individuals able to raise $50,000 to build a railroad to anywhere in the state without a special charter. Those headed toward Cincinnati and Louisville were at the top of the list.

On the other hand, the I&B possessed an enviable route pointed toward Cleveland and ultimately the East Coast. However, it needed the credit to which the M&I had access – not to mention rails to finish its construction, and equipment and operating personnel to actually run the line. It appeared to be a ‘win-win’ for both. M&I’s President, John Brough, saw this opportunity and capitalized on the situation.

By the time the Bee Line’s first segment, the I&B, opened between Indianapolis and Pendleton in 1851, Brough’s M&I would be supplying rolling stock and operating personnel as well as financial backing. It would not come without a cost. The balance of his life and career would be closely tied to the Bee Line. However, this new relationship also signaled the beginning of a love-hate affair between Brough and the Hoosier Partisans.

Check back for Part II to learn more about John Brough’s career and relationship with the Bee Line, and the financier behind the growth of Midwest railroads: Indiana’s James F. D. Lanier.

Continue reading “The Bee Line Railroad: At the Dawn of the Midwest Railroad Era”