In addition to

streetcar A tram (called a streetcar or trolley in North America) is a rail vehicle that travels on tramway tracks on public urban streets; some include segments on segregated right-of-way. The tramlines or networks operated as public transport are ...

lines, the

Van Sweringen Brothers Oris Paxton Van Sweringen (April 24, 1879 – November 22, 1936) and Mantis James Van Sweringen (July 8, 1881 – December 12, 1935) were American brothers who became railroad barons in order to develop Shaker Heights, Ohio. They are better know ...

Cleveland, Ohio Cleveland ( ), officially the City of Cleveland, is a city in the U.S. state of Ohio and the county seat of Cuyahoga County. Located in the northeastern part of the state, it is situated along the southern shore of Lake Erie, across the U.S. ...

owned a vast network of steam railroads.

History

The

New York Central Railroad The New York Central Railroad was a railroad primarily operating in the Great Lakes and Mid-Atlantic regions of the United States. The railroad primarily connected greater New York and Boston in the east with Chicago and St. Louis in the Midw ...

had owned the closely parallel

New York, Chicago and St. Louis Railroad The New York, Chicago and St. Louis Railroad , abbreviated NYC&St.L, was a railroad that operated in the mid-central United States. Commonly referred to as the "Nickel Plate Road", the railroad served parts of the states of New York, Pennsylvan ...

since 1882, soon after its opening. Due to fears of prosecution under the 1914

Clayton Antitrust Act The Clayton Antitrust Act of 1914 (, codified at , ), is a part of United States antitrust law with the goal of adding further substance to the U.S. antitrust law regime; the Clayton Act seeks to prevent anticompetitive practices in their incipie ...

, the NYC sold the line on July 5, 1915 to the newly formed Nickel Plate Securities Corporation, a

holding company A holding company is a company whose primary business is holding a controlling interest in the securities of other companies. A holding company usually does not produce goods or services itself. Its purpose is to own shares of other companies ...

formed by the Vans. They were at first only interested in the line to provide a

right-of-way Right of way is the legal right, established by grant from a landowner or long usage (i.e. by prescription), to pass along a specific route through property belonging to another. A similar ''right of access'' also exists on land held by a gov ...

for their

Shaker Heights Rapid Transit RTA Rapid Transit (generally known as The Rapid) is a rapid transit, light rail, and bus rapid transit system. The system is owned and operated by the Greater Cleveland Regional Transit Authority (GCRTA). The system serves Cleveland and surrou ...

to downtown Cleveland. By 1920 the Vans had decided they wanted control of other railroads, including the

Lehigh Valley Railroad The Lehigh Valley Railroad was a railroad built in the Northeastern United States to haul anthracite coal from the Coal Region in Pennsylvania. The railroad was authorized on April 21, 1846 for freight and transportation of passengers, goods, w ...

Delaware, Lackawanna and Western Railroad The Delaware, Lackawanna and Western Railroad (also known as the DL&W or Lackawanna Railroad) was a U.S. Class 1 railroad that connected Buffalo, New York, and Hoboken, New Jersey (and by ferry with New York City), a distance of . Incorporated in ...

Western Maryland Railway The Western Maryland Railway was an American Class I railroad (1852–1983) which operated in Maryland, West Virginia, and Pennsylvania. It was primarily a coal hauling and freight railroad, with a small passenger train operation. The WM beca ...

, Wheeling and Lake Erie Railway,

Pittsburgh and West Virginia Railway The Pittsburgh and West Virginia Railway was a railroad in the Pittsburgh, Pennsylvania and Wheeling, West Virginia, areas. Originally built as the Wabash Pittsburgh Terminal Railway, a Pittsburgh extension of George J. Gould's Wabash Railroad, ...

Pere Marquette Railway The Pere Marquette Railway operated in the Great Lakes region of the United States and southern parts of Ontario in Canada. It had trackage in the states of Michigan, Ohio, Indiana and the Canadian province of Ontario. Its primary connections in ...

, Cincinnati Northern Railroad and

Toledo, St. Louis and Western Railroad The Toledo, St. Louis and Western Railroad, often abbreviated TStL&W and commonly known as the Clover Leaf, was a railroad company that operated in northwestern Ohio, north central Indiana, and south central Illinois during the late 19th and early ...

(Clover Leaf), as well as partial ownership in the

Lake Erie and Western Railroad The Lake Erie and Western Railroad was a railroad that operated in Ohio, Indiana and Illinois. The Lake Erie and Western Depot Historic District at Kokomo, Indiana, was listed on the National Register of Historic Places in 2008. The beginning ...

and

Philadelphia and Reading Railway The Reading Company ( ) was a Philadelphia-headquartered railroad that provided passenger and commercial rail transport in eastern Pennsylvania and neighboring states that operated from 1924 until its 1976 acquisition by Conrail. Commonly called ...

. The Vaness Company was

incorporated in Delaware The Delaware General Corporation Law (Title 8, Chapter 1 of the Delaware Code) is the statute of the Delaware Code that governs corporate law in the U.S. state of Delaware. Adopted in 1899, the statute has since seen Delaware become the most im ...

on January 9, 1922 as a

to own all the other holding companies. The Clover Leaf Company was incorporated February 25 to own the

, and the Western Company March 11 for the

. The LE&W was bought for $3 million from the

on April 26. On July 1, 1923 and LE&W and Clover Leaf were merged into the Nickel Plate. For the next several years, the Vans bought up the stock of the

Chesapeake and Ohio Railway The Chesapeake and Ohio Railway was a Class I railroad formed in 1869 in Virginia from several smaller Virginia railroads begun in the 19th century. Led by industrialist Collis P. Huntington, it reached from Virginia's capital city of Richmond t ...

(including its

Hocking Valley Railway The Hocking Valley Railway was a railroad in the U.S. state of Ohio, with a main line from Toledo to Athens and Pomeroy via Columbus. It also had several branches to the coal mines of the Hocking Valley near Athens. The company became part of ...

), the

and the

Erie Railroad The Erie Railroad was a railroad that operated in the northeastern United States, originally connecting New York City — more specifically Jersey City, New Jersey, where Erie's Pavonia Terminal, long demolished, used to stand — with Lake Erie ...

. On August 20, 1924 they announced plans to merge the four companies into the

(Nickel Plate) to form a new New York, Chicago and St. Louis Railway. They applied to the

Interstate Commerce Commission The Interstate Commerce Commission (ICC) was a regulatory agency in the United States created by the Interstate Commerce Act of 1887. The agency's original purpose was to regulate railroads (and later trucking) to ensure fair rates, to eliminat ...

on February 21, 1925, but were denied March 2, 1926 due to unsound

financing Funding is the act of providing resources to finance a need, program, or project. While this is usually in the form of money, it can also take the form of effort or time from an organization or company. Generally, this word is used when a firm uses ...

. The plan was opposed by many C&O stockholders. On February 3, 1927 the Vans, along with the

and

Baltimore and Ohio Railroad The Baltimore and Ohio Railroad was the first common carrier railroad and the oldest railroad in the United States, with its first section opening in 1830. Merchants from Baltimore, which had benefited to some extent from the construction of ...

, bought the Wheeling and Lake Erie Railway. Four days later the Vans announced that they would make the C&O the centerpiece of their system, selling the Erie and Pere Marquette to them. The

Alleghany Corporation Alleghany Corporation is an American investment holding company originally created by the railroad entrepreneurs Oris and Mantis Van Sweringen as a holding company for their railroad interests. It was incorporated in 1929 and reincorporated ...

was incorporated January 26, 1929 in

Maryland Maryland ( ) is a state in the Mid-Atlantic region of the United States. It shares borders with Virginia, West Virginia, and the District of Columbia to its south and west; Pennsylvania to its north; and Delaware and the Atlantic Ocean to ...

to hold the Vans' stock in the Nickel Plate, Chesapeake Corporation, Erie and C&O, as well as a partial ownership of the

Buffalo, Rochester and Pittsburgh Railway The Buffalo, Rochester, and Pittsburgh Railway was one of the more than ten thousand railroad companies founded in North America. It lasted much longer than most, serving communities from the shore of Lake Ontario to the center of western Penns ...

(traded to the

in March for the B&O's part of the W&LE; the Vans acquired the rest of it from the NYC at the same time). In April 1930 the Alleghany Corporation bought the

Chicago and Eastern Illinois Railroad The Chicago and Eastern Illinois Railroad was a Class I railroad that linked Chicago to southern Illinois, St. Louis, and Evansville. Founded in 1877, it grew aggressively and stayed relatively strong throughout the Great Depression and two Worl ...

and 46% of the

Missouri Pacific Railroad The Missouri Pacific Railroad , commonly abbreviated as MoPac, was one of the first railroads in the United States west of the Mississippi River. MoPac was a Class I railroad growing from dozens of predecessors and mergers. In 1967, the railroad ...

, gaining a majority of the MoPac on May 13. The

merged into the C&O April 30, 1930. Due to the

Great Depression The Great Depression (19291939) was an economic shock that impacted most countries across the world. It was a period of economic depression that became evident after a major fall in stock prices in the United States. The economic contagio ...

, the planned "Fourth System" failed. The new Midamerica Company bought most of the old assets on September 30, 1935 in an attempt to reorganize. The

merged into the

on June 6, 1947. The Nickel Plate leased the Wheeling and Lake Erie Railway on December 1, 1949, and on October 16, 1964 the Nickel Plate was merged into the

Norfolk and Western Railway The Norfolk and Western Railway , commonly called the N&W, was a US class I railroad, formed by more than 200 railroad mergers between 1838 and 1982. It was headquartered in Roanoke, Virginia, for most of its existence. Its motto was "Precisio ...

. The Erie merged into the

Erie-Lackawanna Railroad The Erie Lackawanna Railway , known as the Erie Lackawanna Railroad until 1968, was formed from the 1960 merger of the Erie Railroad and the Delaware, Lackawanna & Western Railroad. The official motto of the line was "The Friendly Service Route" ...

on October 17, 1960. This left three pieces of the old system - part of the N&W, part of the EL, and the C&O. On August 31, 1965 the N&W and C&O announced a planned merger, with a

named Dereco to own the EL and several other lines. Dereco was incorporated March 1, 1968, acquiring the EL April 1. But the planned merger never happened. The C&O has since become part of

CSX Transportation CSX Transportation , known colloquially as simply CSX, is a Class I freight railroad operating in the Eastern United States and the Canadian provinces of Ontario and Quebec. The railroad operates approximately 21,000 route miles () of track. ...

, the N&W part of the

Norfolk Southern Railway The Norfolk Southern Railway is a Class I freight railroad in the United States formed in 1982 with the merger of Norfolk and Western Railway and Southern Railway. With headquarters in Atlanta, the company operates 19,420 route miles (31 ...

, and the EL part of

Conrail Conrail , formally the Consolidated Rail Corporation, was the primary Class I railroad in the Northeastern United States between 1976 and 1999. The trade name Conrail is a portmanteau based on the company's legal name. It continues to do busin ...

, split between CSX and NS in 1998 (at which time most of the former Erie went to NS).

References

PRR Chronology
*James C. Bonbright,

Gardiner C. Means Gardiner Coit Means (June 8, 1896 in Windham, Connecticut – February 15, 1988 in Vienna, Virginia) was an American economist who worked at Harvard University, where he met lawyer-diplomat Adolf A. Berle. Together they wrote the seminal work of ...

, ''The Holding Company: Its Public Significance and Its Regulation'', pp 253–262 McGraw-Hill, 1932.{{ISBN? New York, Chicago and St. Louis Railroad Erie Railroad Chesapeake and Ohio Railway Pere Marquette Railway History of Cleveland United States railroad holding companies