“Better Homes wants to have a fair shake:” Fighting Housing Discrimination in Postwar South Bend

Better Homes of South Bend Neighborhood in South Bend, Indiana. Photo by Peter Rigenberg, accessed Better Homes of South Bend by Gabrielle Robinson, 121.

On May 21, 1950, a group of African American Studebaker workers and their wives formed a building cooperative in South Bend, Indiana called “Better Homes of South Bend.” Like other building cooperatives, the group appointed officers and a lawyer, drew up incorporation papers, and set times for regular meetings. Unlike other organizations, members decided their cooperative’s activities had to be kept secret to succeed. The cooperative’s first meeting minutes even stressed “no information is to be given out.”

1928 aerial view of Studebaker plant in South Bend, accessed Michiana Memory.

Better Homes of South Bend members had good reason to be cautious. Discrimination in the local housing market had long limited African Americans to dwellings in the southwest part of South Bend, near the Studebaker Factory. Many members were part of the Great Migration of millions of African Americans from the South to the North for war industry jobs in the 1940s. Many had hoped to escape segregation and Jim Crow policies.

However, those with sufficient finances to make down payments found virtually no homes available to them and no banks willing to loan them money. Many of the city’s landlords would not rent to black residents. Real estate agents refused to show black home buyers houses in all-white neighborhoods and developments. White homeowners who tried to sell to black buyers risked physical threats and vandalism. Historian Emma Lou Thornbrough notes that the housing situation in South Bend was so dire for African Americans in the 1940s that many black families were forced to crowd into one or two bedroom units in substandard buildings.

Transcript from a public hearing in South Bend that exposed examples of discrimination in the local housing market from the late 1940s through the early 1960s. March 19, 1963, accessed Michiana Memory.

Alan Pinado, one of the only black real estate agents in South Bend in the postwar era, noted in an oral history of the Civil Rights Heritage Center that:

There were no first quality homes being built for middle class, middle income blacks in South Bend . . . The federal government was part and parcel of the segregated housing pattern. It was legally mandated that new communities be kept segregated.

Federal housing and real estate policy strengthened prejudice in the housing market, not just in South Bend, but nationwide. The federal government first became heavily involved in the housing market in the 1930s. After the 1929 stock market crash and the ensuing Great Depression, the feds created several new agencies, like the Home Owners Loan Corporation (HOLC), the Federal Home Loan Bank (FHLB), and the Federal Housing Administration (FHA), to try to stem the collapse of regional housing markets and bolster the failing economy.

Federal Housing Administration brochure, ca. 1935, accessed columbia.edu.

Before the federal government stepped in, few became home owners. Banks spread mortgages only over three to five years. These mortgages required large payments that few could afford, especially during the Great Depression. In the 1930s, the government introduced the long-term, low-interest, self-amortizing mortgages most homeowners are familiar with today. Since these mortgages required smaller payments, home ownership became more economically feasible. Additionally, the federal government insured these loans through the FHA, making them an incredibly low risk for banks.

The government developed appraisal schemes to determine eligibility for these new loans. They adopted guidelines real estate associations had developed in the 1910s and 1920s to keep neighborhoods segregated. These associations erroneously decreed that the introduction of a non-white family into an all-white neighborhood would decrease surrounding property values. This policy kept many African Americans in poor neighborhoods, despite their income. For example, HOLC created survey maps of neighborhoods in 239 cities that color coded risk. Neighborhoods were coded into four groups, A-D. Only the best rated neighborhoods, marked A and B, would receive long-term loans. One criteria to receive an A or B rating included that the home in question sat in an all-white neighborhood.

HOLC security map for South Bend, Indiana. Accessed Mapping Inequality.

Similarly, the FHA Underwriting Manual, written in 1936, told appraisers to investigate areas surrounding a house for sale to “determine whether or not incompatible racial and social groups are present” because “if a neighborhood is to retain stability it is necessary that properties shall continue to be occupied by the same social and racial classes.” The manual further encouraged the use of local zoning and deed restrictions, like racially restrictive covenants that prevented potential black buyers from purchasing a home from a white homeowner.

The JD Shelly family fought to live in this house in St. Louis, after a neighbor sued to enforce racially restrictive covenants. The Supreme Court ruled in favor of the Shelly family. Accessed nps.gov.

By the time Better Homes of South Bend was established, the FHA insured 1 in 3 mortgages for new construction. However, the appraisal practices described above became standard practice and permeated the entire housing market. Though the Supreme Court ruled these practices unconstitutional in Shelly v. Kraemer in 1948, FHA did not stop publicly endorsing such actions until 1950 and prejudice in the housing market continued well after. Even in 1961, the United States Commission on Civil Rights admitted that housing still:

seems to be the one commodity in the American market that is not freely available on equal terms to everyone who can afford to pay.

Better Homes of South Bend members formed their building cooperative to combat this prejudiced housing market in 1950. According to scholar Jessica Gordon Nembhard, African Americans have established co-ops since the Civil War help fight economic racism. Cooperatives, or “companies owned by people who use their services,” work by pooling resources to satisfy an economic need created by a marketplace failure.

Advertisement for M.W. Jones’s African American apartment co-op in Indianapolis. Indianapolis Recorder, November 11, 1950, 14, accessed Hoosier State Chronicles.

The first large African American housing co-operatives began in Harlem in the late 1920s. Many early African American co-ops in Indiana were markets or grocery stores, formed in the 1930s or 1940s. Better Homes of South Bend was likely one of the first successful African American building co-ops in the state. Only one other similar co-op, an apartment co-op in Indianapolis started by M.W. Jones in 1950, described in the Indianapolis Recorder as the “first Negro co-op Apartments in the city and the State,” is known to have existed.

Better Homes of South Bend had many of their meetings at the Hering House, an African American civic center in South Bend. Accessed Michiana Memory.

At the first meeting, Better Homes members elected officers to run the group: Lureatha Allen as President, Earl Thompson as Vice President, Louise Taylor as secretary, Ruby Paige as assistant secretary, and Bland Jackson as treasurer. Eventually, twenty-two couples joined the group. Many members were neighbors along Prairie Avenue or Western Avenue. Eighteen of the twenty-two male members worked at Studebaker. Most of the women stayed home to take care of children. Since many of the women had more flexible schedules than their husbands, they often took on leadership roles in the cooperative.

Better Homes of South Bend lawyer J. Chester Allen, accessed Indiana Legal Archive

After incorporating, Better Homes members had to find land to build their homes. Their lawyer, J. Chester Allen, secured twenty-six lots on the northwest edge of the city on the 1700 and 1800 blocks of North Elmer Street from his acquaintance, George Sands, a prominent white lawyer in South Bend. Only a few families, all white, lived in this relatively undeveloped area. US Census and Housing Data, which divides South Bend into six wards containing roughly five to six thousand households. The data indicates that only seven “non-white” households lived in the ward containing 1700-1800 North Elmer Street in 1950. In contrast, all Better Homes of South Bend members lived in Ward 2 or Ward 6 at the time, both of which contained 530 and 835 non-white households, respectively.

DeHart Hubbard, accessed University of Michigan.

At a general meeting in September 1950, members enjoyed divvying up the lots and receiving their house numbers. The next steps involved getting loans to finance construction and a contractor to build homes on the lots. Better Homes enlisted the help of DeHart Hubbard, who worked as a race relations advisor at the FHA office in Cleveland. The FHA had finally started cracking down on racially restrictive covenants in their mortgages, after years of pressure from civil rights groups.

Through Hubbard, Better Homes got the FHA to handle their permanent mortgages and found four local banks to handle financing. Many members worried about meeting with local bank executives because they had heard bankers often denied home loans to African Americans, especially those who wanted to build outside black neighborhoods. Hubbard accompanied members to meetings with banking executives to remind the bankers that the federal government was insuring Better Homes’ loans and that members had good credit, therefore there was no reason to deny financing. In Better Homes of South Bend, member Leroy Cobb told author Gabrielle Robinson:

What I was really proud of was that here was a black man standing up to white executives and telling them that Better Homes wants to have a fair shake. It inspired me.

Leroy Cobb, a few years before joining Better Homes of South Bend, 1946, accessed Michiana Memory.

Better Homes also had to find a competent contractor. Member Margaret Cobb noted in an oral history for the Civil Rights Heritage Center at Indiana University South Bend, that contractors they met with “wanted to give us substandard materials,” to build their homes because members were black. Construction companies at the time often employed a double standard in building, using higher quality materials on homes for white homeowners and cheaper stock for similar African American homes. Leroy Cobb remembered in Better Homes of South Bend that one prospective contractor refused to put doors on closets in their homes. After two years, Better Homes finally found two contractors that supplied good plans at reasonable prices. All the houses were to be one-story frame construction on a concrete slab. Most floor plans contained five rooms and one bathroom.

Before construction could start, the city had to install sewer and water lines. Though the postwar building boom strained the city’s resources, negotiations between the city and Better Homes attorney J. Chester Allen stretched over years. Members suspect that the process might have taken so long because of an unwillingness for the Better Homes families to move to North Elmer Street.  After two years of letters and petitions, the group finally got sewers installed and construction began.

1700 block of North Elmer Street in 2015, the former homes of members Earl and Viro Thompson, Gus and Josie Watkins, and Bland and Rosa Jackson. Photo by Peter Rigenberg, accessed Better Homes of South Bend by Gabrielle Robinson, 86.

In the late fall of 1952, the first family, Bland and Rosa Jackson, moved into their home at 1706 North Elmer Street. By the mid-1950s, all twenty-two families had moved in between 1700 and 1841 North Elmer Street. Leroy and Margaret Cobb moved in on November 1, 1953 to 1702 North Elmer Street. Leroy Cobb told Gabrielle Robinson that on move-in day, “I was elated.” Finally, he and Margaret had enough space for their family.

Baton twirlers in the annual Elmer Street Parade, August 1962. Photo courtesy Vicki Belcher and Brenda Wright, accessed Better Homes of South Bend, 97.

In August 1954, the group celebrated their new neighborhood with a picnic featuring cakes, pies, potato salad and barbecued chicken and ribs. Over the years, Better Homes members grew a vibrant community, filled with family cookouts and outdoor activities like baseball, kickball, and building snowmen. There was even an annual Elmer Street Parade.

The Indiana Historical Bureau will honor Better Homes of South Bend with a new state historical marker.  The marker will be revealed at a ceremony open to the public July 1, 2017 at 1702 North Elmer Street in South Bend. Check on our Facebook page and website for upcoming details.

Better Homes of South Bend members at their celebratory picnic in August 1954. Photo courtesy Leroy Cobb, accessed Better Homes of South Bend, 91.

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 DAMNED THING WORKS!:” Philo T. Farnsworth & the Invention of Television

Philo T. Farnsworth with early television camera, 1930s
Philo T. Farnsworth with early television camera, 1930s, courtesy of the J. Willard Marriott Digital Library, University of Utah.

It is notable that in this age of celebrity worship, most people cannot name the inventor of the television. Even the meticulous Aaron Sorkin confused the details of Farnsworth’s life in his stage play. Woefully unrecognized, Farnsworth conceived of the idea for electronic television at the age of 14 and brought his conception to fruition in 1927 with his first electronic transmission.

Like Apple founder Steve Jobs, Farnsworth nurtured a broad, idealistic vision of how his invention would change the world, envisioning how television might increase literacy, facilitate the sharing of cultures and even prevent wars through global discourse. Farnsworth’s greatest resource, much like Jobs’, was unconventional thinking and an ability to assemble a small team of determined ingénues like himself. Farnsworth’s wife, Elma “Pem” Farnsworth, attributed her husband’s success to “intuitive thinking, logic, and hard work,” as well as his ability to combine “seemingly unrelated elements into new instruments of amazing effectiveness.”

Farnsworth's childhood home in Indian Springs Utah
Farnsworth’s childhood home in Indian Springs Utah, courtesy of The Philo T. Farnsworth Archives.

The inventor of television grew up in Utah prior to the existence of power lines, making his radical electronic concepts all the more remarkable. Farnsworth’s family moved to a farm in Rigby, Idaho, where Farnsworth delighted at the sight of a Delco power system, immersed himself in scientific magazines and invented tools that facilitated household chores. While working on the farm, a teenaged Farnsworth observed the straight rows created by the horses as he plowed, and abruptly thought “he could build the image like a page of print and paint the image line after line . . . with the speed of the electron, this could be done so rapidly the eye would view it as a solid picture.”

According to Pem, Farnsworth reasoned that by using an image dissector tube, he could manipulate electrons to “change a visual image into a stream of electrical current, transmit that to another vacuum tube at the receiver, and on a fluorescent screen turn the current back into the visual image again.” Farnsworth sketched his idea on the blackboard of his high school chemistry teacher, Justin Tolman, and presented him with a drawing of it, which would prove invaluable years later during a 1935 patent suit ruling.

Philo T. Farnsworth's sketch for teacher Justin Tolman
Philo T. Farnsworth’s sketch for teacher Justin Tolman, courtesy of philointhehall.com.

In 1923, Farnsworth moved to Provo, Utah and pursued formal education, enrolling at Brigham Young University (BYU) to study mathematics and physics, although, like Jobs, never graduated. Ironically, his lack of formal training contributed to his success, as fundraiser George Everson recalled that Farnsworth “attacked the whole assignment with no engineering experience and little engineering knowledge, but to compensate for these inadequacies he had courage and genius.” After leaving BYU, Farnsworth worked for Everson as an organizer at the Community Chest Campaign, who, along with fundraiser Leslie Gorrell, funded Farnsworth’s electronic television idea. With this financial backing, Farnsworth moved to California, eventually establishing a lab on Green Street in San Francisco and hand-picking a team of scientists and innovators.

In the team’s early days, engineers shuffled in and out of the lab with various instruments, a “glittering array of crystals, prisms, and lenses.” This activity attracted the attention of police in the Prohibition era and Pem stated “it’s not hard to imagine how suspicious our operation must have looked to an outsider. Strange packages were being brought in, and the curtains were drawn for demonstrating the light relay.” Pem reassured two policemen, who came to investigate the lab, that she and her husband were not operating a still and continued their electronic experiments.

Farnsworth’s 202 Green Street lab in San Fransisco, courtesy of The Philo T. Farnsworth Archives.

Farnsworth focused on perfecting the image dissector tube with the help of Pem’s glassblowing brother, Cliff Gardner. The scientific team constructed numerous models before developing a bulb that was delicate, yet strong enough to transmit an image electronically. After years of failed experiments and twelve hour work days, on September 27, 1927 Farnsworth transmitted the first “electronic television image.” With Farnsworth and his staff at the receiver, Cliff inserted the slide into the Dissector and a small line materialized in the receiver room, ushering in the television age. Farnsworth wired Gorrell a simple message: “THE DAMNED THING WORKS!” and applied for his first television patent on January 7, 1927.

Farnsworth was “the first to form and manipulate an electron beam” and according to his biographer Paul Schatzkin “that accomplishment represents a quantum leap in human knowledge that is still in use today.” Farnsworth’s ability to harness electrons negated the need for mechanical objects to transmit images and later contributed to breakthroughs in radar and electron microscopy.

Farnsworth Television Model, 1936, courtesy of the J. Willard Marriott Digital Library at the University of Utah.

However, transforming his historic achievement into a commercial product involved years of financial and legal problems. Farnsworth struggled to maintain a balance between scientific experimentation and his financial backers’ desire for a return on investment. In 1928, Farnsworth met with impatient investors who demanded to see “some dollars” in his invention, and stunned them when an image of a dollar sign materialized in the screen before them. This presentation bought Farnsworth more time, but later that year the backers repealed their support, forcing Farnsworth to rally his team to continue with the development of television.

In the period between his first transmission and first public demonstration of the television in 1934, Farnsworth continued to navigate around financial problems, company reorganization, and protests by radio and film actors fearing the new medium could jeopardize their jobs. The primary obstacle to commercialization was RCA’s lawsuit regarding his 1927 television system patent. Russian scientist Dr. Vladimir Zworykin attempted to devise an electronic television system and applied for a patent in 1923, despite lacking proof of its feasibility. Farnsworth invited Zworykin, a former employee of Westinghouse, to see his San Francisco lab in 1930 in hopes that Westinghouse might fund his invention. Unbeknownst to Farnsworth, Zworykin no longer worked for the company and his visit to the lab was motivated by personal objectives.

Farnsworth’s television system patent, contested over in the 1935 patent suit against RCA, accessed Google Patents.

Farnsworth demonstrated how to construct an Image Dissector for Zworykin, who later replicated the tube and presented it to RCA. Farnsworth’s refusal to sell his patents to RCA prompted the company to sue for priority of invention, so as to introduce commercial television to the public. The U.S. Patent Office settled the “David and Goliath confrontation,” as described by Farnsworth’s wife Pem, when it ruled in Farnsworth’s favor based on Justin Tolman’s presentation of Farnsworth’s high school Image Dissector sketch. For the first time in RCA’s history, the company had to pay patent royalties, rather than receive them. The ruling also established Farnsworth as the inventor of television, despite ongoing debate and distortions to the historical record like Aaron Sorkin’s stage play proclaiming RCA the victor of the suit. Schatzkin provides a superb synopsis of the debate about the inventor of television and errors punctuating the narrative in The Boy Who Invented Television.

Farnsworth continued to fight against RCA’s appeals and his refusal to bow to the corporation taxed his mental and physical health. While struggling with depression, exhaustion and a dependence on liquor to cope with the stress, Farnsworth vowed to bring television from conception to commercialization. He aimed to get into broadcasting, but because the FCC would not yet allocate spectrum space for television, Farnsworth decided to enter into manufacturing, which would lead him to Fort Wayne, Indiana.

According to the J. Willard Marriott Digital Library at the University of Utah, in 1938 the Farnsworth television show was taken on a country- wide tour and was very well received.

Read part II: Philo T. Farnsworth: Conversing with Einstein & Achieving Fusion in Fort Wayne here.

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 Midwestern Making of Kenneth Rexroth: Robbing Cash Registers and Reading the Classics

At times described as cantankerous, paranoid, and bitter, Kenneth Rexroth, the trail-blazing Hoosier poet, cajoled and harangued some of the best poets of the Beat Generation. At the same time, he worked tirelessly to promote their work. Rexroth’s own radical poetry both preceded and inspired the Beats, though at times he refused to be associated with the movement that he thought had lost its meaning by the late 1950s, and especially that “hipster” Jack Kerouac.

Kenneth Rexroth, accessed via Poetry Foundation.

As important as Rexroth’s poetry is to American literature, his life story is perhaps even more fascinating. And while much has been written about his years in San Francisco laying the groundwork for a literary renaissance in that city that grew into the larger Beat movement, little has been written about his time in Indiana, Illinois, and Ohio – a period when the budding poet rubbed elbows with anarchists, burlesque dancers, criminals, and the artistic and literary elite of the Midwest and the world.

Kenneth Rexroth Home, South Bend, Indiana, 2016, accessed Google Maps

Kenneth Rexroth was born on December 22, 1905 in South Bend, Indiana. Young Rexroth’s first residence was a house at 828 Park Avenue in South Bend which still stands and will soon be the site of an Indiana State Historical Marker commemorating his life and career. In Kenneth Rexroth: An Autobiographical Novel, he described the house as “substantial and comfortable,” near to the Oliver Hotel and Mr. Eliel’s drug store. According to a 1905 article in the Elkhart Daily Review, Rexroth’s father was working as a traveling pharmaceutical salesman.

In 1908, the Rexroth family moved to a home on East Beardsley Avenue in Elkhart, Indiana, a relocation that made the local newspaper.

Elkhart Daily Review, June 29, 1908, 1, accessed NewspaperArchive.com
“Surface Car Terminal, Elkhart, Indiana,” photograph, ca. 1910, The Indiana Album.

Rexroth wrote a description of the Elkhart home as well:

This was a quiet residential street above the river where all the best homes in the town were in those days, where the patent-medicine people, the musical-instrument people, the buggy-works people, the corset people, and all the other leading citizens of the town lived in their wooden, sometimes Palladian or Romanesque mansions, and we had our own little Palladian house.

While Rexroth was born into a comfortable life, his family’s circumstances soon deteriorated. His parents, Charles Marion and Delia Rexroth, had difficulties with alcohol, chronic illness, and each other. Rexroth wrote that his mother was drinking champagne when she went into labor and bluntly called his father a “drunk” and a “constant gambler.” When he was five, circa 1910, they left the lovely house on East Beardsley due to his father’s diminishing finances. The family moved more often then, mostly renting, but Rexroth remembers living in a “run-down Victorian house” on Second Street that he believed they owned. Despite setbacks, he remembered his childhood in Elkhart fondly. His mother taught him to read early and immersed him in classical literature. He spent time at the library, learned French, explored the neighborhood, and fell in love with Helen, “the little girl next door,” when they were just six or seven. His parents were able to afford a family tour of Europe, which made quite an impression on young Rexroth.

However, his mother continued to succumb to a chronic illness that multiple doctors were unable to diagnose, and his father intensified his drinking and gambling. Sometime around 1914, when Rexroth was nine, the family moved briefly to Battle Creek, Michigan, and then to Chicago the following year, where they lived with relatives. Rexroth’s father’s alcoholism put him near death on at least one occasion and he left the family, likely for some sort of sanitarium. Rexroth moved with his mother into a small apartment and they rarely saw his father. After a painful period fighting what was likely tuberculosis, Delia Rexroth died in 1916. Eleven-year-old Rexroth went to live with his father and grandmother in Toledo, Ohio. Here, Rexroth began to seek and find trouble.

Photograph, 1916, accessed Linda Hamalian, A Life of Kenneth Rexroth (New York and London: W. W. Norton & Company, 1991), 120.

Rexroth had little supervision in Toledo. He began running around town with a gang of boys who would rob cash registers and, despite his young age, he ran various money-making hustles that involved running errands for “brothels, cardrooms, and burlesque shows.” He also witnessed the Willys-Overland labor strike that turned riotous. Rexroth wrote that this was a significant moment in his youth and he “started off in the labor movement.” In 1919, at this uncertain juncture in Rexroth’s early adolescence, his father also died.

Rexroth’s aunt, Minnie Monaham, retrieved the thirteen-year-old trouble maker and brought him back to Chicago to live with the rest of the Monahams. The 1920 U.S. Census shows that the nine person household was located on Indiana Avenue, but they soon moved to an apartment on South Michigan Avenue in the Englewood neighborhood on the South Side of Chicago. Rexroth enrolled in the nearby Englewood High School. School administrators quickly expelled him for his poor attitude and attendance. It was outside of the Chicago public school system, however, that Rexroth pursued a more profound education.

Carl Sandburg, “Chicago,” 1916, Chicago Historical Society, accessed via Encyclopedia of Chicago.

Perhaps in the same manner he was able to gain access to the burlesque theaters of Toledo, Rexroth found access to the clubs of the poets and writers gathered in this Midwest city during the second wave of the Chicago Literary Renaissance. Among these were important local poets such as Carl Sandburg and Harriet Monroe, writers and intellectuals such as Hoosier-born Theodore Dreiser, and political thinkers such as famous Hoosier socialist, Eugene Debs, as well as the “big names” of the international art and literature worlds. This intellectual elite met at formal and informal clubs and locations around the city.

Rexroth also explored the radical political movements of the period at venues such as the Washington Park Bug Club, also known as Bughouse Square, which met in a “a shallow grassy amphitheater beside a lagoon off in the middle of the park,” according to Rexroth. Bughouse Square was, for a time, “the most celebrated outdoor free-speech center in the nation and a popular Chicago tourist attraction,” according to the Chicago Historical Society. Here, people with a host of different ideas would get on their soapboxes (sometimes literally) and orate to the crowds that would gather. Rexroth wrote that “here, every night until midnight could be heard passionate exponents of every variety of human lunacy” such as:

“Anarchist-Single-Taxers, British-Israelites [or Anglo-Israelite], sell-anointed archbishops of the American Catholic Church, Druids, Anthroposophists, mad geologists who had proven the world was flat or that the surface of the earth was the inside of a hollow sphere, and people who were in communication with the inhabitants of Mars, Atlantis, and Tibet, severally and sometimes simultaneously. Besides, struggling for a hearing was the whole body of orthodox heterodoxy — Socialists, communists (still with a small “c”), IWWs [International Workers of the World], De Leonites, Anarchists, Single Taxers (separately, not in contradictory combination), Catholic Guild Socialists, Schopenhauerians, Nietzscheans — of whom there were quite a few — Stirnerites, and what later were to be called Fascists.”

“Dill Pickle Club Entrance,” photograph, n.d., Newberry Library, Dill Pickle, Box 2, Folder 32, Chicago Historical Society, accessed via Encyclopedia of Chicago.

Another inspiring haunt for Rexroth was the Dill Pickle Club, not far from Bughouse Square, where artists and writers along with socialists and anarchists gathered for social and artistic experimentation. Rexroth wrote that there were independent theater productions Wednesdays, Thursdays and Fridays. On Sunday night, there were lectures on various topics. On Saturday nights “the chairs were cleared away and the Chicago jazzmen of the early Twenties played for a dance which lasted all night.” Rexroth remembered the actors and sets as being awful but somehow they produced plays that were “the very best.” Lectures were given by “every important scholar who came through the town, and all those who were attached to the universities.”

Most significantly, however, Rexroth gained entrée to the salon at the home of Jake Loeb, where he encountered the leaders of the local literary movement, international visitors such as D. H. Lawrence, and access to books of artists and writers who would greatly influence him, such as Gertrude Stein. In his autobiography, Rexroth referred to Loeb’s home as “a more important Middle Western cultural institution in 1923 than the University of Chicago, the Art Institute, the Symphony, and the Chicago Tribune put together.” He wrote that he met “everybody who was anybody in the Chicago of the Twenties and everybody who was anybody who was passing through town.” He continued:

“Besides the famous transients, many of whom stayed in the place, the house was full every night of the cream of Chicago’s intellectuals in the brief postwar period of Chicago’s second renaissance. It seems rather pointless even to list them — any of them — because they were all there. . . It is not that I met famous people — it is that I learned by listening to impassioned discussion among mature people, all of whom were out in the world putting their ideas into effect.”

Rexroth was also starting to put his ideas into effect. Although he had shown little academic or literary promise thus far, Rexroth became “a prolific painter and poet by age seventeen,” according to the Poetry Foundation. By this point he was running from one cultural hot-spot to another, performing the poetry to which he was being exposed. He wrote in his autobiography that if he hustled he could make over fifty dollars in a weekend. He continued, “Thus began my career as a boy soapboxer, bringing poetry to the masses.”

“Self Portrait” by Kenneth Rexroth, published in Chicago Review 55.2/¾, accessed via Chicago Review tumblr.

He began working a number of odd jobs, and in his free time, experimenting with oil paints and piano. One such job was at the Green Mask on Grand Avenue and State Street. Rexroth referred to the Green Mask as a “tearoom,” but it was probably more accurately a cabaret, and it was located in the basement of a brothel. Rexroth wrote, “The place was a hangout for bona-fide artists, writers, musicians, and people from show business.” He continued, “In the Mask there gradually formed a small, permanent family of oddities who were there every night and never paid for their coffee.” Here Rexroth was able to see and perform poetry with some of the era’s best poets and musicians, both black and white, local and national. These included the “seclusive and asocial” poet Edgar Lee Masters, local African American poet Fenton Johnson, nationally-acclaimed black poet and playwright Langston Hughes, the local jazz drummer Dave Tough (who Rexroth called Dick Rough in his autobiography), and an assortment of dancers, singers, and drag queens. This group held weekly poetry readings and lectures and jazz performances. Rexroth and others began combining jazz and poetry, a technique he would become known for by the time he headed out west and one that would greatly influence the Beat Generation. He wrote that here, at the Green Mask, “happened the first reading of poetry to jazz that I know of.” About this early Chicago jazz scene, he wrote:

“I’m afraid that I can’t provide any inside information about the formative years of jazz, for the simple reason that none of us knew that this was what was happening. We didn’t know we were making history and we didn’t think we were important. . . Jazz was pretty hot and made a lot of noise. People talked loud to be heard above it, got thirsty and drank too much and made trouble, so we tried to keep the jazz small and cool . . . I remember many nights going over to the piano and saying, ‘For Christ’s sake, cool it or you’ll get us all busted!'”

Chicago Tribune, January 11, 1923, 1, accessed Chicago Tribune Archives.

As he predicted, the Green Mask did get busted. In 1923, the Chicago Tribune reported that thirty-five “Bohemians” were arrested in a raid at the Green Mask. The Tribune article stated: “The police entered the place after standing outside for some time listening to what they say was the reading of indecent poetry by George Lexington.” The owner was booked as “keeper of a disorderly house.” Rexroth was also arrested because he was considered part owner for investing some small amount of money into the place. He was sentenced to a year in jail.

Photograph, 1922, in G. A. Claussenius, The House of Correction of the City of Chicago : a retrospect covering a half century of endeavor from the founding of the institution to the present time, 1871-1921 (City of Chicago, 1922), 7, accessed via Internet Archive.

He described the conditions on his arrival to the Chicago House of Corrections, or the “Bandhouse” as it was called:

This was quite a place. It had been built back in the Seventies or Eighties, with long, narrow windows like the archers’ slots in medieval castles, and a warped and muddy stone floor where the water oozed up in winter between the paving blocks. This was the only running water in the place. Each cell was given a one-gallon pail of water once a day and provided with a battered old bucket for a privy. It was a cage-type cell house. The cells were all in the center about thirty feet away from the walls, so the only view was through the heavy iron grilles and door which looked out on brick walls and filthy windows through which it was impossible to see anything. The inner cells looked out on the tier opposite. The whole thing was built of iron, and any movement in it resounded as though it had happened inside a bell; any cough or groan or cry was magnified as if by an immense megaphone. In each cell there were four iron-slatted bunks that folded up against the wall. There were no mattresses, and each fish [inmate] was provided, along with his slops, with a filthy khaki Army blanket full of holes.

Rexroth spent the winter in these circumstances and explained that he “got a little closer to the underworld.” When he got out of the Bandhouse, he spent most of his time pursuing various young women, two of whom lived in the same building, and writing them poetry. He became more involved in local theater productions and continued pursuing radical social theories and chasing down works of avant-garde literature. He began reading more spiritual works and even spent a few months in a monastery. He also began a period of traveling and recording his observations of nature in his poetry – something else he would become known as a master of in later life.

Photo accessed Linda Hamalian, A Life of Kenneth Rexroth (New York and London: W. W. Norton & Company, 1991), 120.

In late December 1926, Rexroth met the artist Andrée Schafer through friends, just briefly outside their door. When his friends asked him what he thought about her, Rexroth replied, “I intend to marry her.” They began working on paintings together, both of them working on the same canvas, “like one person,” according to Rexroth. They married a few weeks later in January 1927 and left for a new life on the West Coast that spring. In San Francisco, instead of experiencing a cultural Renaissance, Rexroth would create one.

Check back next week for more about this Hoosier rebel in part two of this story: Kenneth Rexroth: Poet, Pacifist, Radical, and Reluctant Father of the Beat Generation

For more information:

Kenneth Rexroth, An Autobiographical Novel (Garden City, New York: Doubleday & Company, Inc., 1966).

Linda Hamalian, A Life of Kenneth Rexroth (New York and London: W. W. Norton & Company, 1991).

Marches, Gas Masks, and Trash Sculptures: The First Hoosier Earth Day

Centerville High School students marching in Centerville, Indiana to demonstrate against automobile pollution for Earth Day, Palladium-Item, April 22, 1970, accessed newspapers.com.

Indianapolis Mayor Richard Lugar proclaimed April 22, 1970 as “a day for contemplation, conversation, and action to halt and reverse the impending crisis of the decay of man’s environment.” Throughout Indiana, Hoosiers acted to raise awareness about the imminent pollution crisis.  In addition to general clean up campaigns, panel discussions, and seminars, students built monuments made of trash and participated in marches. Some even donned gas masks or abandoned their cars, all to dramatize the need for citizens to “Give Earth a Chance.”

This was the first Earth Day. Historian Adam Rome describes the day as “the most famous little-known event in modern U.S. history.” He notes it was “bigger by far than any civil rights march or antiwar demonstration or woman’s liberation protest in the 1960s.” A whopping 22 million Americans took part in the first Earth Day. About 1,500 colleges and 10,000 schools, in addition to numerous churches, temples, city parks, and lawns in front of various government and corporate buildings hosted Earth Day activities. The event was so popular that Congress even shut down on Earth Day. About two-thirds of congressmen, both Democrats and Republicans, returned home to speak to their constituents at Earth Day rallies. President Richard Nixon, one of the only major politicians not to make a public speech on Earth Day, even admitted in a press release that he felt “the activities show the concern of people of all walks of life over the dangers to our environment.”

Earth Day participants blocked Fifth Avenue in New York, front page of The New York Times, April 23, 1970, accessed Project for Public Spaces.
Senator Gaylord Nelson, accessed Congress.gov

Senator Gaylord Nelson, a Democrat from Wisconsin, conceived Earth Day in 1969. After the Santa Barbara oil spill in January and February of that year, Nelson decided to ignite a mass protest in support of increased environmental action. He had crafted environmental legislation throughout the 1960s, including efforts to ban harmful chemical products, like the pesticide DDT and non-biodegradable detergents. He found few supporters for his initiatives in Congress. However, he surmised many citizens, worried about radioactive fallout, suburban sprawl, and smog, would care. Inspired by anti-war teach-ins in the 1960s, Nelson envisioned a nationwide teach-in event to educate people about pollution and encourage them to take action. If constituents supported environmental regulation, it was reasoned, politicians would follow.

Judy Hoody working at Environmental Teach-In Inc, 1970, Associated Press, accessed USATODAY.

Though Nelson came up with the general premise of Earth Day, he knew the movement would not flourish if he dictated the event. Instead, he announced plans for the teach-in in September 1969 and enlisted the help of Pete McCloskey, a Republican, as co-chair. Soon, individuals all over the country called Nelson’s office, asking for more information. To handle all the activity, Nelson set up a separate organization, Environmental Teach-In Inc., in December 1969. A small staff of twenty-somethings ran the organization. Though Nelson originally created the organization to help local organizers implement ideas and make contacts, Environmental Teach-In mainly became a publicity hub. Community organizers, which often included housewives, students, and scientists started planning Earth Day events before the organization opened.

Thus, the national office spent most of their time fielding calls from journalists to inform them about Earth Day plans in locales across the nation. Organizers planned programs to explore a variety of topics including population growth, pesticide use, nuclear fallout, waste disposal, suburban sprawl, in addition to mainstays like air, water, and land pollution.

Back in the Hoosier state, Governor Whitcomb issued an executive order endorsing Earth Day activities in Indiana. He wrote “I urge all of our citizens to act responsibly to alleviate the pollution menace to the environment.” In particular, Whitcomb noted:

Our educational institutions have the expertise and capability both to inform us of present dangers resulting from the ways we use our natural resources and to define and develop new technologies and systems needed to abate the pollution problem.

Whitcomb’s emphasis on educational institutions highlighted the primary role students played in Indiana Earth Day. Most of these activities took place at universities, colleges, and schools, which were all open to broader community members. However, it was mostly students, rather than faculty that organized the day’s events. Elizabeth Young, a sophomore at St.-Mary-of-the-Woods College near Terre Haute summarized why young Hoosiers rallied around Earth Day. She told the Indianapolis Star “if the kids our age don’t do something, we won’t live to be the age of our professors.”

LS Ayres sponsored Earth Day ad, Indianapolis Star, April 19, 1970 accessed newspapers.com.

Though most activities took place on April 22, students and community members often could attend ecological events at their local university or college throughout the week. Almost all the major secondary education institutions in Indiana sponsored panels, lectures and discussions featuring a variety of speakers, including politicians, scientists, and industry representatives. Senator Nelson even spoke at rallies at IU Bloomington and Notre Dame. Most of the Indiana congressional delegation returned from Washington, D.C. to speak to their constituents. At Purdue, industry representatives from Inland Steel, Eli Lilly, and General Motors participated in a panel discussion. Each talked about the measures their company was taking to abate pollution and answered questions from audience members. Many universities organized tree planting ceremonies or litter clean-up operations along Indiana waterways.

A student adding cans to the non-disposable monument in front of the Arts Terrance; Daily News, April 23, 1970, 4 accessed Ball State University Archives and Special Collections.

A few students staged more dramatic events to draw attention to environmentalism. At Ball State University, students constructed a pile of cans and bottles they collected from Muncie residents and created a “non-disposable, non-returnable monument” on the terrace of the Art Building. The monument symbolized junk, which students perceived as one of America’s primary pollution problems. At Purdue, students picked up litter along the Wabash River and displayed it all in front of the Lafayette courthouse for the public and local government representatives to see. DePauw students sponsored bus tours for community members to take throughout Greencastle, which would showcase Putnam County’s dirtiest and cleanest spots, including a junkyard, a pig feed next to a stream, homes designed specially to preserve the terrain, and an industrial plant featuring the latest pollution control measures. Others specifically tackled air pollution issues. Tri-State College in Angola (now Trine University), initiated a campaign urging students and faculty to leave their cars at home and walk to campus. One DePauw student rode a horse to campus bearing the sign “Ban the automobile.” DePauw also put an electric car on display.

Litter along the Indianapolis Canal looking South on Vermont Street with the State Office Building in the background, Indianapolis Star, April 22, 1970, accessed newspapers.com

Numerous younger students participated as well. Schools received packets detailing available speakers, films, materials, and suggested programs and activities to coordinate for Earth Day activities. Elementary school students picked up litter and participated in art and essay contests about environmental issues. In Portland, elementary students started a “Be a Pollution Policeman” campaign and created posters advising community members to report polluters that they later put up all over town.

Christy Miller, a student at Northwestern High School in Kokomo, stands among trash picked up around the school and asks other students to sign a petition against pollution, Kokomo Tribune, April 23, 1970, accessed newspapers.com.

North Central High School students in Indianapolis hosted an Earth Day program filled with speakers, seminars, and films. Students created a pollution themed skit and a collage made with all the litter they collected in the area. Several student musicians played music alongside a slide show of photographs of local pollution. At Southport High School, a group of students all wore gasmasks to class to highlight air pollution. Logansport physics students marched through town sporting posters and signs. At Edinburgh, high school students even produced a television program “Project Earth Day,” aired on a Columbus news station that examined water, air, and land pollution in the area.

Despite the major successes of Earth Day, a lot of issues remained unsolved. Whitney M. Young Jr. addressed the major deficit of the Earth Day celebration and of the ensuing environmental movement, in the Indianapolis Recorder in 1970: Earth Day programs often failed to incorporate race or class into the problem of pollution. Though pollution was finally spreading to the suburbs, people of color had often been forced to live and work in places containing dangerous pollutants for years through zoning ordinances and prejudiced real estate practices. He noted, “I get the uneasy feeling that some people who have suddenly discovered the pollution issue embrace it because its basic concern is improving middle class life.” He concluded:

The choice isn’t between the physical environment and the human. Both go hand in hand, and the widespread concern with pollution must be joined by a similar concern for wiping out the pollutants of racism and poverty.

Earth Day did, however, inspire landmark legislation and institutions to address pollution. In later years, some environmental justice organizations tackled the issues Young brought up. Adam Rome notes Earth Day “inspired the formation of lobbying groups, recycling centers, and environmental studies programs. Earth Day also turned thousands of participants into committed environmentalists.” Before Earth Day, Americans addressed environmental issues in disjointed ways. Old conservation groups from the Progressive era focused mainly on wilderness preservation. Other groups focused on single issue campaigns, like air pollution. Earth Day pushed numerous related environmental concerns into one platform and provided a space for concerned citizens to come together and decide how America should fight the environmental crisis of the 1970s. The constituent support Earth Day garnered encouraged Congress to enact a swell of landmark environmental legislation after Earth Day, including the creation of the Environmental Protection Agency in December 1970, the Clean Air Act amendments of 1970, the Clean Water Act in 1972, and the Endangered Species Act in 1973.

Advertisement for Marlin McDaniel for State Senate, emphasizing his work with the environment, including checking Gary air pollution and sampling industrial pollution in the White River, Palladium-Item, May 5, 1974, 56 accessed newspapers.com.

Indiana politicians also dedicated more of their time to environmental issues after Earth Day. Governor Whitcomb started “Operation Cleansweep” in May 1970, a massive campaign to clean up polluted and littered landscapes across the state. On the first anniversary of Earth Day in 1971, Mayor Lugar launched Indianapolis’s first recycling program to collect cardboard and metal.  Indiana also became the first state in the nation to ban phosphate detergents, which scientists discovered as a major polluter of waterways, in 1971. Additionally, more Hoosiers joined or formed environmental organizations to make sure the state government stayed on top of environmental regulation. For example, the Indiana Eco-Coalition formed in 1971 to serve as an umbrella organization to represent the majority of Indiana’s environmental activist groups and provide information on impending environmental legislation.

Clearly, when people shouted “Give Earth a Chance,” it worked.

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 Decades-Long Struggle to Electrify Rural Hoosierdom

The Daily Banner, September 30, 1936, accessed Hoosier State Chronicles.

On Wednesday September 30, 1936, The Greencastle Daily Banner heralded the announcement that President Franklin Delano Roosevelt officially started his reelection campaign the day before. On the same page came news of another federal concern, the allocation of over $800,000 to projects of the Rural Electrification Administration (REA). The news was an important victory for Indiana’s rural electrification projects, which had received a boost in the previous year.

IHB historical marker.

Indiana has a long history with electrical power. In March 1880, the Wabash County Courthouse installed electrically powered lamps, reportedly becoming the First Electrically Lighted City. By the late 1880s, companies were providing electrical services to Indianapolis proper. In 1887, Purdue University hired its first Head of the School of Applied Electricity, and the next year formally opened its School of Electrical Engineering. These engineers continued pursuing the development of better systems for electrical use during the era of Edison, Westinghouse, and Tesla.

According to Hoosiers and the American Story (2014), in 1900 the creation of a massive electrically-powered interurban train system carried Hoosiers throughout the state, linking towns to Indianapolis and other areas with close to 400 trains running on a daily basis. In 1912, one of Edison’s former employees, Samuel Insull created the Interstate Public Service Company by combining the resources of several predecessors into a single Indianapolis-based company (the company would eventually come to be known as Duke Energy). By this time, the interurban system began to recede in light of the introduction of automobiles.

Around the same period, Purdue began doing outreach to rural communities through the Co-Operative Extension Service (Extension) first through state funding, and then as a part of the Smith-Lever Act of 1914. These programs were facilitated by County Extension Agents who served as journeymen experts, arranging workshops and showcases to spread agricultural, and eventually home-economics, lessons from techniques developed at Purdue. It took until the early 1920s, though, before research literature began to tackle the question of rural electrification.

Ad, South Bend News-Times, November 30, 1915, accessed Hoosier State Chronicles.

This is not to imply that efforts were not consistently underway to encourage electrical use. On the contrary, the Indiana & Michigan Electric Company hosted an Electrical Prosperity Week in November 1915; their advertisement on page four of the November 30, South Bend News-Times announced “You can spend a couple of hours most enjoyably—and very profitably—at the Electric Show, and it will cost you nothing.” Beyond the showcase, the next page announced a $10.00 prize for the best 200-word essay on the utility of electricity. The Swartz Electric Company ran a promotional train with examples of the modern conveniences provided by electricity, “under the auspices of Purdue University, with equipment suggested for modern farm homes.”

Ad, Indianapolis News, May 29, 1920, accessed Hoosier State Chronicles.

Yet, with all this promotion, the vast distances and relatively low potential for return on investment limited most electrification to cities and larger towns. As late as 1925, one researcher noted this problem in “Electrifying the Farm and Home,” stating “in order to make a profit they [power companies] have charged the farmers so high a rate that it has kept them from using the service.” Indiana had begun to reach out to their rural communities, just not with power, yet.

Historian Audra J. Wolfe’s “‘How Not to Electrocute the Farmer:’ Assessing Attitudes Towards Electrification on American Farms, 1920–1940,” tracks the process and problems of making this rollout happen. Several early research reports document the hazards of incorporating electrical equipment, particularly generators and batteries, into farming homes, as Wolfe notes, “many women avoided them [substations and gas-powered electric appliances] as they had a tendency to explode.”

Muncie Post-Democrat, June 5, 1925, accessed Hoosier State Chronicles.

On June 5, 1925, The Muncie Post-Democrat carried news of an announcement by researchers at Purdue that they would be undertaking the experimental electrification of two farms, one in northern part of the state run by the Calumet Gas & Electric Company and one in the southern part of the state run by the Interstate Public Service Company. These experiments would include checking on the efficacy of implementing electrical components into crop, animal, and household farm operations, as well as to begin developing the resources necessary for statewide electrification. Starting in January 1927, the Daily Banner announced that Purdue would be sending out a “traveling school on wheels” via the interurban system to “demonstrate the employment of electricity” and included experts in agriculture as well as presentations by a home economist, “to attract the feminine eye.” In 1933, Extension published and distributed Leaflet No. 187, “Care and Operation of Electric Household Equipment.” In it, the author outlines some of the variety of electrical appliances and tools which were becoming available to rural homemakers, and notes that “More than 30,000 Indiana farms are now using electricity . . .” Certainly, the university believed that rural electrification was a matter of probability and time, not a question of possibility.

The Daily Banner, January 18,1927, accessed Hoosier State Chronicles.

More assistance was needed though for rural electrification to become a reality in the homes of Indiana farmers. Researchers continued to push and though it took some time, by the middle of the next decade, Hoosier lawmakers decided that the time had come to intervene. In 1935, Indiana became part of a growing number of states to enact legislation aimed at developing electrification capacity. According to statistics from the Indiana Law Journal, when Indiana passed its act allowing for the incorporation of rural electric membership corporations who could seek federal financing, almost 150,000 farm homes lacked the ability to access electric power.

The Daily Banner, August 6, 1935, accessed Hoosier State Chronicles.

On July 22, 1935, the Boone County Rural Electric Membership Corporation (REMC) became one of the first funded federal electric projects in the country, and the first in the state. On August 6, the Daily Banner announced the creation of the Indiana Statewide Rural Electric Membership Corporation. In January 1936, Boone County REMC ran its first 5 miles of power lines to the Clark Woody farm.

This legislation was given an important boost when in 1936, President Roosevelt established the REA and began allowing for distribution of public support dollars. In Indiana, the process of establishing REMCs and encouraging electrification fell to the Extension Service. Over the next four years, Extension Agents helped to form numerous REMCs across the state. In 1937, Extension began distributing Bulletin 215, “Selection, Operation, and Care of Electric Household Equipment,” an update to their 1933 publication which boasted “More than 35,000 Indiana farms are now using electricity . . .” This progress was not always consistent, but it was certainly effective. According to Dwight W. Hoover, between 1930 and 1940 electrified Hoosier farms went from 1-in-10 to 1-in-3. According to Teresa Baer, “By 1965, nearly all Hoosier farms had electricity.” Thus, it took nearly eight decades of sustained effort for most rural Hoosiers to gain access to one of the utilities that we so often take for granted today.

Suggested Reading:

D.L. Marlett and W.M. Strickler, “Rural Electrification Authorities and Electric Cooperatives: State Legislation Analyzed,” Journal of Land and Public Utility Economics, 12, no. 3 (Aug. 1936), pages 287–301).

Barbara Steinson, “Rural Life in Indiana, 1800–1950,” Indiana Magazine of History, XC (1964), pages 203–250.

Audra J. Wolfe, “ ‘How Not to Electrocute the Farmer:’ Assessing Attitudes Towards Electrification on American Farms, 1920–1940,” Agricultural History, 74, no. 2 (Spring 2000), pages 515–529.

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”