Chicago & North Western Railway Co. “Great Train Robbery"

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You The Railroad is a main artery to the heart of the community From the beginning it has been a pioneer force For as the iron rails extended into the virgin land settlers who were at first reluctant Became eager to occupy the territories made accessible by the new dependable transportation For farmers admit a way to get the harvest and livestock to market Towns began to spring up along the lifeline of steel Basic industry became feasible For the lumber that was felled and the iron and copper that was mined could now be shipped and sold to broader and broader markets Manufacture and exchange were stimulated by growing needs As the nation flourished it spread out in all directions across the land, but the country remained indivisible Bound by the growing network of railroads that carried forth an uninterrupted flow of people the males and goods of all kinds to the far corners a new era dawned The economics of what was to become the largest producing and wealthiest nation in the world Was spurred by wheels spinning along the iron rails No area in the nation was more dependent upon the railroads for its economic growth than the Midwest The spreading lines of rails were forerunners of new enterprises and new communities in profusion In the middle of the 19th century This growing area was linked to another territory that had just discovered riches California this link was accomplished by the railroads cooperating with each other For when in 1869 the Golden Spike was driven at promontory in Utah to forge the first rail connection between the Midwest and the far west The Chicago and Northwestern Railway had for two years been hauling the rails and supplies to Omaha Thus expediting the stretch of the Union Pacific lines westward Soon after came other Midwestern railroads to funnel goods from throughout the Middle West into the lifeline to the West Coast Agriculture and heavy industry found in the accessible railroads great incentive to locate and operate the rails push forward to stimulate growth with service and service fostered growth The Midwest became a foremost center of the nation's agriculture and industry Today many railroads link Chicago to California via the historic overland route each Interchanging freight with the Union Pacific at Omaha and Kansas City Like a giant tree turned on its side the regional railroads form the roots which course throughout the Middle West Carrying goods of all kinds to and from the trunk line that spans the West and branches out along the Pacific Coast In the past decade many of the nation's railroads have faced economic hardships They have had to fight an uphill battle to hold their own against new forms of competition Which are aided and abetted by government subsidies that are not available to railroads Trucks travel government -built highways and Barges sail rivers on which channels and other navigational aids are maintained by government Such inequities give an edge to competition while railroad resources are strained The brunt of these financial pressures have been borne by the regional railroads such as those of the Midwest Because of the low return on high -cost operations they render in providing vital branch line service to thousands of communities Much study has been given to the dilemma of how to strengthen the nation's essential rail transportation Merger is one solution that has fortified weaker systems By combining such roads it is possible to affect economies through the elimination of overlapping services and facilities by pooling resources Improvements can be made that individually the railroads could not afford but there are different kinds of mergers One type of merger can revitalize weak railroads and improve services Another could so injure competing roads as to leave a trail of havoc in its wake a Prime example of a merger that destroys rather than bills is the one that has been proposed between the Union Pacific and the Rock Island railroads Such a merger would have far -reaching consequences upon the economic climate of the Midwest The Union Pacific wishes to extend its main line which now terminates at Council Bluffs, Iowa directly into Chicago via the Rock Island tracks at present Freight is divided among the Midwestern railroads at Union Pacific terminal points at Omaha and Kansas City With entry on Rock Island tracks the Union Pacific would be in a position to monopolize this long -distance traffic It would also gain entry into other strategic gateways such as the Twin Cities Peoria and st.

Louis traffic on the regional roads would shrink substantially In conjunction with its merger proposal the Union Pacific has agreed to sell the southern half of the Rock Island comprising some 3 ,500 miles of railroad to another giant Western Railroad the Southern Pacific This would open to the Southern Pacific as well as the Union Pacific New territories and create a depressing effect on existent railroads in those areas In the main this is a device which the Union Pacific is using to invade new sections of the country It would enable the Union Pacific and the Southern Pacific to blanket the Western two -thirds of the United States and whereby introduce the threat of railroad monopoly The Union Pacific's professed reason for merger is that it could give better transcontinental service and compete more effectively with trucks But it's hidden and real reason was revealed in a subpoenaed document which was compiled by the Union Pacific itself Clearly showing that the potential gain would come not from the Rock Island Not from trucks, but by diversion from many other railroads The Union Pacific's own study reveals that such diversion could reach the staggering amount of 229 million dollars a year the combination of the Union Pacific with the Rock Island and the Southern Pacific with the Rock Island Would provide opportunity for additional diversion of traffic not contemplated in the Union Pacific study The problems that could emerge from this Pandora's boxcar are incalculable the Midwestern railroads service thousands of communities with mainly marginal operations branch lines providing industry and agriculture with much -needed rail conveniences are costly to maintain For such roads as the Northwestern The Chicago Omaha route offers one of the few long hauls in the Midwest where freight traffic is Concentrated and heavy enough to help offset the high -cost operation of marginal branch lines With the proposed merger the revenue that has sustained the regional railroads would be appropriated by the already favored Union Pacific and Southern Pacific the loss of revenue would do irreparable damage to the many Midwestern and Southwestern railroads as well as other lines whose average hauls are substantially less than those of the Union Pacific and the Southern Pacific a decrease in revenue represents the difference between profit and deficit for a number of key railroads They would become vulnerable targets for the competition of trucks and water carriers Those most acutely affected might be forced into bankruptcy While others would have to curtail services and defer maintenance and improvements in order to keep solvent This merger would permit the Union Pacific and the Southern Pacific to skim off the cream of the long haul business while assuming no Responsibility for maintaining the extensive services now being rendered throughout this territory by railroads.

They would harm The Midwestern railroads have always been involved in the development and continued prosperity of this region They have been instrumental in locating thousands of industries along their lines Representing hundreds of millions of dollars in investments by these companies With long haul revenue diverted from these roads something would have to give Industries which have grown up with the regional railroads would find unavailable Railroad services which they have come to rely upon Reduced numbers of branch lines less frequent runs scarcity of specialized freight cars and switching facilities Breakdowns due to aging equipment and less maintenance all would be a deterrent to existent Let alone new services Industry Marginal branch lines which are needed seasonally or in times of big harvest May have to be abandoned in order to reduce expenses as total revenues of each railroad diminish Long -term investments to upgrade facilities and equipment would decrease Commuter services So indispensable to the solution of urban congestion would suffer a setback Trains would run less frequently and make fewer stops Equipment which has been modernized for optimum efficiency and comfort would deteriorate Already crowded highways would become cluttered Payrolls would shrink with traffic Loads With spreading stagnation school districts Municipalities and states in the middle and southwest would feel the pinch of declining railroad and industrial taxes Merger benefits for a few towns along the rock island would be offset many times over By losses to other communities and by the waste of existing railroad facilities slumping into disuse a Union pacific rock island merger would weaken the nation's transportation By upsetting the vital rail system at its center The disaster would reverberate far and wide It is not in the public interest to make the union pacific and the southern pacific Already favored and wealthy land -grant railroads richer and more powerful at the expense of the marginal railroads Which with present traffic volume can continue efficient operation only by resourceful management It is not in the public interest to trigger the decline of the midwestern railroad system Which is integrally a part of the well -being of this region It is in the public interest to insist upon the development of a strong growing and progressive midwestern railroad system Serving the core of our nation its large and small industries businesses farms And the people who depend on them You

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