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Chicago, Peoria & St. Louis Railroad: Frought with Financial Issues

Published: February 4, 2025

By: Adam Burns

The Chicago, Peoria & St. Louis Railroad (CP&StL), while often overlooked within the broader scope of American railroad history, was once a notable system connecting St. Louis and Peoria with a history tracing as far back as 1853.

During the age when railroads were the lifeblood of industrial growth and societal transformation in the United States, CP&StL emerged as a vital connector for local economies and communities within Illinois.

However, like many other regional railroads of the era, it faced challenges of much more prosperous systems serving much larger markets.

Following years of financial difficulty, the property underwent foreclosure and was subsequently sold to a handful of other railroads. The segment extending north of Springfield evolved into the Illinois & Midland Railroad.

Meanwhile, the rest of the line was largely decommissioned, with the exception of a section near St. Louis, which is currently under the ownership of the Norfolk Southern.  The history of the CP&StL is a tale of ambition, competition, and adaptation, reflecting broader trends in the American rail industry.

System Map (1909)

Early History

The Illinois River Railroad was the earliest component of what later became the Chicago, Peoria and St. Louis Railway (CP&StL).  It was established under a charter by the Illinois General Assembly in February 1853.

This charter envisioned a rail line extending from Jacksonville to La Salle via the Illinois River Valley. The section from Virginia to Pekin entered service in 1859. Subsequently, in May 1864, following foreclosure proceedings, ownership transferred to the Peoria, Pekin and Jacksonville Railroad—a corporation established in June 1863 for this purpose.

This enterprise later acquired an additional route from Pekin to Peoria in May 1868 from the Peoria and Hannibal Railroad. By 1869, the line had further expanded southwest to the Toledo, Wabash and Western Railway (Wabash) at Jacksonville. The segment obtained beyond Pekin in 1868 was eventually sold in November 1880 to the Peoria and Pekin Union Railway, specializing in terminal operations for those cities.

A separate line, the Springfield and Northwestern Railroad, was chartered in March 1869 to build a route from Springfield to Rock Island. This line reached completion in December 1874, running from Springfield (which also hosted Wabash lines) to Havana. From Havana, the line utilized trackage rights on the Peoria, Pekin and Jacksonville Railroad to access Peoria.

Upon its inauguration, the line was leased to the Indianapolis, Bloomington and Western Railway—entities extending eastward from Havana and Pekin—but this lease was forfeited in 1875. Shortly thereafter, the company underwent reorganization as the Springfield and Northwestern Railway, with a new incorporation in May 1878.

Both lines, linking Jacksonville and Springfield to Pekin, were acquired in 1881 by Wabash. However, following Wabash’s default, ownership transferred mid-1888 to the newly formed Chicago, Peoria and St. Louis Railway, a subsidiary of the Jacksonville Southeastern Railway.

This parent company was later reorganized in 1890 as the Jacksonville, Louisville and St. Louis Railway. The entity further expanded its network, the "Jacksonville Southeastern Line," by leasing the St. Louis and Chicago Railway (connecting Springfield to Litchfield) in September 1890.

Additionally, as part of CP&StL, a line was constructed from Litchfield to Madison (near East St. Louis) by November 1890. In December of the same year, the company, in collaboration with the Atchison, Topeka and Santa Fe Railroad, introduced a through Pullman car passenger service between Chicago and St. Louis.

The CP&StL was typical of many Midwestern railroads in that it functioned primarily as a regional carrier. Its main lines and branch routes were integral in transporting raw materials, agricultural products, and manufactured goods.

In addition to freight services, the railroad also ran passenger services, which were vital in a time before automobiles became the predominant form of transportation. Towns along the CP&StL’s path benefitted from improved accessibility and economic integration, which facilitated local industries and helped smaller communities grow.

However, the early 20th century posed challenges for not just the CP&StL but for many local lines. The rise of automobile travel, coupled with the construction of better roads, began to erode the monopoly railroads had once held over long-distance and regional transportation.

The CP&StL's most prominent issue was larger competitors such as the Illinois Central, Wabash, and the Alton Railroad which linked Chicago and St. Louis directly.  As a result, the CP&StL struggled financially and operationally to compete with these expansive, well-capitalized entities.

Financial Issues and Final Years

In 1893, the rail system was dismantled with the Jacksonville, Louisville and St. Louis, and the Chicago, Peoria and St. Louis railways being assigned separate receiverships.

By December 1895, the lease held by the latter for the St. Louis and Chicago had lapsed, leading to the formation of the new St. Louis, Peoria and Northern Railway. Consequently, the Chicago, Peoria and St. Louis Railway was reorganized in January 1896 as the Chicago, Peoria and St. Louis Railroad of Illinois.

This reorganization included its original connections from Pekin to Jacksonville and Springfield, alongside a disconnected extension from Litchfield to Madison. Without direct access from Springfield to Litchfield, the CP&StL negotiated trackage rights over the St. Louis, Chicago and St. Paul Railroad, known as the "Bluff Line," to reach Waverly, and further over the Jacksonville Southeastern to Litchfield.

By July 1896, the pathway was altered to utilize the line between Jacksonville and Litchfield. In March 1900, the CP&StL obtained the Bluff Line as its St. Louis linkage and divested the Litchfield-Madison route.

In its final form the CP&StL comprised a main line extending from Pekin to Granite City/Madison, with branches leading to Jacksonville and Grafton. Despite these adjustments, the railroad organization continued to face financial challenges.

The Chicago, Peoria and St. Louis Railroad, incorporated in December 1909, assumed control of the previous company's assets in January 1913.  The decline in profitability due to market saturation and rising operational costs resulted in little hope for the system to remaing in service.

Operations persisted until November 1924, when foreclosure resulted in the division of the property among four separate companies:

1. The Alton and Eastern Railroad acquired the segment from Granite City to Grafton, including the Alton Terminal Railway lease, later leased to the Illinois Terminal Company in 1930 and merged in 1937; this area is now part of the Norfolk Southern Railway.
2. The Chicago, Springfield and St. Louis Railway took over from Lockhaven to Springfield, which was eventually abandoned.
3. The Springfield, Havana and Peoria Railroad managed the route from Springfield to Pekin, leased to the Chicago and Illinois Midland Railway in 1926 and merged in 1936, currently under the Illinois and Midland Railroad.
4. The Jacksonville and Havana Railroad operated from Jacksonville to Havana, which was eventually abandoned.

Timetables (1909)

Legacy

Despite its absorption, the legacy of the CP&StL remains embedded in the communities it once served, and in the broader narrative of Midwestern railway history.

Its routes laid the foundation for continued rail service in some parts of Illinois, and the economic connections forged by its tracks contributed to the growth and prosperity of towns and cities within its reach.

The story of the CP&StL is emblematic of many smaller railroads during that era—marked by ambition and vision, but ultimately consumed by industrial evolution and the inexorable march of technological progress.

Today, while the Chicago Peoria and St. Louis Railroad is no longer operational as an independent entity, it serves as a historical reference point, illustrating the powerful role railroads played in shaping American commerce and community development in the late 19th and early 20th centuries. Its history is preserved in the stories of the communities it touched and the broader narratives of rail transportation in the United States.