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Chicago & Northwestern Railroad

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Posted by nanaimo73 on Monday, September 26, 2005 11:51 AM
Union Pacific took out an option to buy the Iowa Interstate in May 1989 while Japonica Partners launched a hostile takeover bid for the C&NW. UP would have put in double track and CTC and certainly could have built a large yard away from Chicago, much as they have done at Rochelle. Perhaps they would have purchased the EJE east of Joliet and interchanged with NS, CSX and Conrail in Indiana.
The Rochelle webcam would have been at Wyanet.
http://terraserver.microsoft.com/image.aspx?T=1&S=13&Z=16&X=176&Y=2863&W

This is a photograph of a CRI&P train ducking under the BN main.
http://www.rrpicturearchives.net/showPicture.aspx?id=86468
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Posted by Murphy Siding on Monday, September 26, 2005 12:14 PM
QUOTE: Originally posted by Murphy Siding

QUOTE: Originally posted by bobwilcox

The C&NW recognized the potental in the PRB in the early 1970s but could not find a way to finance the project. During this time I was a Market Manager at the C&NW.

The BN initically announced they were going to object to the C&NW coming into the PRB. Robert Spafford, Chairman of the ICC, invited Larry Provo, CEO of the C&NW and Bob Dowding, CEO of the BN to a meeting in Washington. He pointed out to his guests that the US faced an energy crisis and the national interest required the C&NW coming into the PRB as soon as they could arrange financing and specifically without a long drawn out ICC case about the C&NW getting access. The two CEOs agreed with Mr Spafford's view.

bobwilcox: What is/was a Market Manager, at CNW?

Thanks

However, the C&NW was unable to finance the project via the Cowboy Line or a connection with the UP in NE. Therefore, the UP thought the C&NW should step aside and not object to the UP coming in from Nebraska via the North Platte River. The C&NW's counter proposal was that they set up a joint venture(Northwest Town Properties). The C&NW contributed their geographic position and the UP contributed their borrowing power to the new joint venture.






It seems I forgot how to use the quote feature[:I]. I was asking bobwilcox what a Market Manager was at CNW.
Thanks

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Posted by Murphy Siding on Monday, September 26, 2005 12:21 PM
QUOTE: Originally posted by nanaimo73

Union Pacific took out an option to buy the Iowa Interstate in May 1989 while Japonica Partners launched a hostile takeover bid for the C&NW. UP would have put in double track and CTC and certainly could have built a large yard away from Chicago, much as they have done at Rochelle. Perhaps they would have purchased the EJE east of Joliet and interchanged with NS, CSX and Conrail in Indiana.
The Rochelle webcam would have been at Wyanet.
http://terraserver.microsoft.com/image.aspx?T=1&S=13&Z=16&X=176&Y=2863&W


Deja-Vu! Makes you wonder why UP didn't jump right in and buy CNW at that time?

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Posted by CSSHEGEWISCH on Monday, September 26, 2005 12:52 PM
QUOTE: Originally posted by Murphy Siding

QUOTE: Originally posted by nanaimo73

Union Pacific took out an option to buy the Iowa Interstate in May 1989 while Japonica Partners launched a hostile takeover bid for the C&NW. UP would have put in double track and CTC and certainly could have built a large yard away from Chicago, much as they have done at Rochelle. Perhaps they would have purchased the EJE east of Joliet and interchanged with NS, CSX and Conrail in Indiana.
The Rochelle webcam would have been at Wyanet.
http://terraserver.microsoft.com/image.aspx?T=1&S=13&Z=16&X=176&Y=2863&W


Deja-Vu! Makes you wonder why UP didn't jump right in and buy CNW at that time?

Since a hostile takeover bid was involved, UP management probably (and wisely) decided not to get involved in a bidding war with Japonica and wind up overpaying for the North Western.

RI had less than ideal connections in Chicago with eastern carriers, except maybe for NS (ex-NKP). It also connected with BRC from east of Clearing, so any unclassified interchange for an Eastern carrier would have to go over Clearing's hump twice. Anybody who has watched Iowa Interstate's interchange moves with IHB would appreciate the difficulty of interchange with CSX and NS (ex-NYC).
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Posted by daveklepper on Monday, September 26, 2005 2:31 PM
But the Rock was in an ideal position with respect to run-throughs with Eastern Railroads, better than anyone else.
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Posted by CSSHEGEWISCH on Monday, September 26, 2005 2:36 PM
The only run-throughs with Rock Island and Eastern carriers of which I am familiar are with Erie Lackawanna in Chicago and with Penn Central over the Kankakee Belt.
The daily commute is part of everyday life but I get two rides a day out of it. Paul
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Posted by bobwilcox on Monday, September 26, 2005 3:47 PM
Each market manager at the C&NW was in charge of a group of commodities. I did chemicals while other people did grain, autos, coal, lumber,food, etc. It was our job to design the services our customers required, set the price for the service and then promote the C&NW's services to the customers. Most of the time I was doing this prior to the Staggers Act so the pricing part had serious limitations. However, we were able to get block shipments of potash and grain up and running prior to Staggers.

In addition the CNW in the 1970s had three basic strategies. We were to get the comuter service deficits off our back and on to the backs of the taxpayers in NE IL. We were to abandon the 60% of the mileage that only produced 4% of the revenue. We were to build a strong relationship with the UP after the CRIP fiasco when the UP and CNW were at each others throats. All of our market plans had to complement these three strategies.
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Posted by Murphy Siding on Monday, September 26, 2005 8:29 PM
QUOTE: Originally posted by bobwilcox

Each market manager at the C&NW was in charge of a group of commodities. I did chemicals while other people did grain, autos, coal, lumber,food, etc. It was our job to design the services our customers required, set the price for the service and then promote the C&NW's services to the customers. Most of the time I was doing this prior to the Staggers Act so the pricing part had serious limitations. However, we were able to get block shipments of potash and grain up and running prior to Staggers.

In addition the CNW in the 1970s had three basic strategies. We were to get the comuter service deficits off our back and on to the backs of the taxpayers in NE IL. We were to abandon the 60% of the mileage that only produced 4% of the revenue. We were to build a strong relationship with the UP after the CRIP fiasco when the UP and CNW were at each others throats. All of our market plans had to complement these three strategies.


Can you elaborate on designing the services your customers required? If most was regulated, what could CNW do to differentiate it from other railroads, in order to keep from competing soley on price?

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Posted by Anonymous on Monday, September 26, 2005 10:41 PM
I have to agree the UP should have taken over the RI line at C.B. Iowa because it was right there at their own Yard. It would have been a very good connection for the UP.

As for the Cowboy line, What was happening to the Cowboy was happening to the E/W line too. Lack of Maintence was very quickly catching up to the Boone sub. Am I correct or am I wrong.

One quick Question.......Just why did the UPRR buy the CNW in the first place?
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Posted by nanaimo73 on Tuesday, September 27, 2005 1:25 AM
Union Pacific bought the C&NW for the line from Council Bluffs to Chicago. It was competing with ATSF for Chicago-California traffic and with BN for Pacific North West-Chicago traffic and it needed that line to be in top shape. UP was concerned C&NW would let the line degrade. UP had the morgage on the WRPI and would have gotten that one way or another. The rest of the C&NW was not that important to UP.
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Posted by bobwilcox on Tuesday, September 27, 2005 6:33 AM
QUOTE: Originally posted by Murphy Siding

Can you elaborate on designing the services your customers required? If most was regulated, what could CNW do to differentiate it from other railroads, in order to keep from competing soley on price?


Often we would combine faster more reliable service with spot off line equipment supply when cars got tight. Using soda ash as an example we had enough volume between North Platte and Elkhart, IN to block trains in NP that ran straight through via UP-FREM-CNW-CHI-CR. In this way we could offer service that was at least a day faster than the BN or IC. In addition the service was very reliable. On top of this the UP was short of covered hoppers in Green River. They gave us and the MP the first crack at making up the shortage which we did with 200 cars each. The shippers were grateful for the help and shifted business to us from the BN and IC as a result. This approach let us increase our soda ash volume from 16% of the market to 75% of the market. At that time we the "profit" margin of soda ash was 100%.
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Posted by Murphy Siding on Tuesday, September 27, 2005 6:47 AM
QUOTE: Originally posted by nanaimo73

Union Pacific bought the C&NW for the line from Council Bluffs to Chicago. It was competing with ATSF for Chicago-California traffic and with BN for Pacific North West-Chicago traffic and it needed that line to be in top shape. UP was concerned C&NW would let the line degrade. UP had the morgage on the WRPI and would have gotten that one way or another. The rest of the C&NW was not that important to UP.



Other than a few busy lines, CNW & UP pretty much got rid of the rest.

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Posted by Chris30 on Tuesday, September 27, 2005 12:23 PM
The UP had interests in the CNW system other than the CNW's portion of the Overland Route:
-Belvidere Sub that serves a large Chrysler Plant (orig G&CU main)
-Harvard Sub that serves a large GM plant in Janesville, WI
-UP has kept all of the lines that serve the Waukegan, Pleasant Prarie & Sheyboygan coal plants.

CC
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Posted by Murphy Siding on Tuesday, September 27, 2005 6:31 PM
I seem to have *lost* the post from BNSF railfan about the abandonded CNW track north of Hooper, Neb. (Insert "duh" smilie here). Are you speaking of the section that is used by the Fremont and Elkhorn Valley (?) tourist railroad?

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Posted by Murphy Siding on Tuesday, September 27, 2005 10:25 PM
As part of the BN merger, CNW was granted (?) a *Gateway* to the BN at Oakes, N.D. Did they use this? And, did it do them any good? Of course, the line is gone now.[:(]

Thanks

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Posted by Anonymous on Wednesday, September 28, 2005 8:10 AM
QUOTE: Originally posted by bobwilcox

QUOTE: Originally posted by up829

UP rerouted much of it's traffic ..


The UP or any other railroad does not have traffic to reroute. The person paying the freight routes the traffic. There are no exceptions except for a emergency situation such as a derailment or a flood.


Perhaps reroute is the wrong word and I should have said shifted? In any case, during the late 60s UP was short-hauling itself over the CB&Q via Grand Island to avoid the CNW Omaha line into Chicago. Once Heineman was gone, CNW did major repairs to the line, opened the Fremont cutoff and as you mentioned in another post, relations and traffic improved greatly. Some other things CNW did that made it desireable to UP was the opening of Global 1 at Wood street , development of Intermodal business, the Falcons. etc. The line was aleady double-track and capable of high speed without needing major re-alignments like the RI and Milw routes would have required.

Regarding the buyout, I seem to recall that UP owned a big chunk of non-voting stock as part of the coal line deal. They were also a major player in the Blackstone Group which served as a white knight against the Japonica bid. I believe they owned something like 30% of the stock at the time of the buyout and probably controlled more through other partners in Blackstone.

IMHO both roads ultimately benefited. The partnership with UP in the coal line saved CNW from becoming just another granger, while the Omaha line continues to be the vital eastern part of the Overland Route, just as it has been since the beginning.
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Posted by bobwilcox on Wednesday, September 28, 2005 8:11 AM
QUOTE: Originally posted by Murphy Siding

As part of the BN merger, CNW was granted (?) a *Gateway* to the BN at Oakes, N.D. Did they use this? And, did it do them any good? Of course, the line is gone now.[:(]

Thanks


It was useful for lumber roller cars consigned to Marshalltown, IA. The CNW's lumber market manager, Don Cape, looked upon it as something for nothing so why not?
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Posted by Murphy Siding on Wednesday, September 28, 2005 11:45 AM
QUOTE: Originally posted by up829

QUOTE: Originally posted by bobwilcox

QUOTE: Originally posted by up829

UP rerouted much of it's traffic ..


The UP or any other railroad does not have traffic to reroute. The person paying the freight routes the traffic. There are no exceptions except for a emergency situation such as a derailment or a flood.


Perhaps reroute is the wrong word and I should have said shifted? In any case, during the late 60s UP was short-hauling itself over the CB&Q via Grand Island to avoid the CNW Omaha line into Chicago. Once Heineman was gone, CNW did major repairs to the line, opened the Fremont cutoff and as you mentioned in another post, relations and traffic improved greatly. Some other things CNW did that made it desireable to UP was the opening of Global 1 at Wood street , development of Intermodal business, the Falcons. etc. The line was aleady double-track and capable of high speed without needing major re-alignments like the RI and Milw routes would have required.

Regarding the buyout, I seem to recall that UP owned a big chunk of non-voting stock as part of the coal line deal. They were also a major player in the Blackstone Group which served as a white knight against the Japonica bid. I believe they owned something like 30% of the stock at the time of the buyout and probably controlled more through other partners in Blackstone.

IMHO both roads ultimately benefited. The partnership with UP in the coal line saved CNW from becoming just another granger, while the Omaha line continues to be the vital eastern part of the Overland Route, just as it has been since the beginning.


Are you saying CNW opened Global 1? I thought UP did?

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Posted by Chris_S68 on Wednesday, September 28, 2005 12:09 PM
QUOTE: Originally posted by Murphy Siding
Are you saying CNW opened Global 1? I thought UP did?


Global One/Wood street = CNW
Global Two/Proviso = CNW
Global Three/Rochelle = UP
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Posted by Murphy Siding on Wednesday, September 28, 2005 12:14 PM
QUOTE: Originally posted by Chris_S68

QUOTE: Originally posted by Murphy Siding
Are you saying CNW opened Global 1? I thought UP did?


Global One/Wood street = CNW
Global Two/Proviso = CNW
Global Three/Rochelle = UP


Thanks for the info. I guess I knew that, must have had a brain fade or something.[D)]<<< just pretend that is Bart Simpson saying "doh".

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Posted by MP173 on Wednesday, September 28, 2005 3:45 PM
I recall there was an article in Trains (late 70's) that gave a in depth look at the Falcons.

It was in the form of the writer riding the Falcon from Chicago to the handoff to the UP.

Might be good looking up for more historical info for you CNW fans.

It might have been titled "Route of the Falcons" or "Where Falcons Fly" something like that.

ed

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Posted by bobwilcox on Wednesday, September 28, 2005 5:04 PM
QUOTE: Originally posted by up829

Perhaps reroute is the wrong word and I should have said shifted? In any case, during the late 60s UP was short-hauling itself over the CB&Q via Grand Island ...


Regarding the buyout...


The UP-Q route provided very good service with pool train crews working between Lincoln and N. Platte! However, once the BN merger took place the UP became uncomfortable with a connection that also served Oregon and Washington.

The C&NW managers who did not go to work for the UP did very well financially on their stock and 401-k. The CNW had a very rich, performance based, 401-k for non-agreement employes.
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Posted by Murphy Siding on Wednesday, September 28, 2005 9:24 PM
QUOTE: Originally posted by MP173

I recall there was an article in Trains (late 70's) that gave a in depth look at the Falcons.

It was in the form of the writer riding the Falcon from Chicago to the handoff to the UP.

Might be good looking up for more historical info for you CNW fans.

It might have been titled "Route of the Falcons" or "Where Falcons Fly" something like that.

ed




What were the falcons?

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Posted by Anonymous on Wednesday, September 28, 2005 9:32 PM
Maybe someone could give me a brief explanation of what/who Japonica was?
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Posted by Murphy Siding on Wednesday, September 28, 2005 9:44 PM
QUOTE: Originally posted by farmer03

Maybe someone could give me a brief explanation of what/who Japonica was?


Japonica Partners was a group of "corporate raiders" who made a lot money off an attempted hostile takeover of CNW in the late 80's. It does sound like the name for a Steven Spielberg movie though,doesn't it?[;)]

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Posted by Anonymous on Thursday, September 29, 2005 7:18 AM
QUOTE: Originally posted by Murphy Siding
[
What were the falcons?

Thanks


The Falcons were scheduled high speed run-through TOFC/COFC trains. I believe the service started in the early to mid 70s. Wood Street was used as the terminal because it was close to the city with good access from nearby expressways. There were cutoff times for trucks and the trains left on time with whatever they had. CNW did a really good job marketing the service and it was very successful.

When double-stack serviice started, Wood Street and an old B&O yard adjacent to it were turned into Global One.
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Posted by Murphy Siding on Thursday, September 29, 2005 10:16 PM
QUOTE: Originally posted by up829

QUOTE: Originally posted by Murphy Siding
[
What were the falcons?

Thanks


The Falcons were scheduled high speed run-through TOFC/COFC trains. I believe the service started in the early to mid 70s. Wood Street was used as the terminal because it was close to the city with good access from nearby expressways. There were cutoff times for trucks and the trains left on time with whatever they had. CNW did a really good job marketing the service and it was very successful.

When double-stack serviice started, Wood Street and an old B&O yard adjacent to it were turned into Global One.


Is there a UP equivilent of the Falcons? It sounds like a good program that was a little before it's time.

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Posted by Anonymous on Friday, September 30, 2005 8:14 AM
Well with the HOTTEST Train that runs though town eveyday should be considered as such........
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Posted by Chris30 on Friday, September 30, 2005 11:28 AM
QUOTE: By: Murphy Siding:
Is there a UP equivilent of the Falcons? It sounds like a good program that was a little before it's time.


ZCSLT - High priority intermodal, Canal St, Chicago, IL to Lathrop, CA (Sometimes this train is symboled as ZCSOA for Oakland, CA). A lot of orange Schneidner trailers. Used to see this train roll through Elmhurst, IL at @1:30pm
ZLTCS - Lathrop, CA to Canal St, Chicago, IL

ZCSSC - Canal St, Chicago, IL to Salt Lake City, UT. A lot of UPS trailers. Used to see this train roll through Elmhurst, IL at @9:45pm.
ZSCCS - Salt Lake City, UT to Canal St, Chicago, IL

CC
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Posted by Murphy Siding on Friday, September 30, 2005 7:47 PM
QUOTE: Originally posted by Chris30

QUOTE: By: Murphy Siding:
Is there a UP equivilent of the Falcons? It sounds like a good program that was a little before it's time.


ZCSLT - High priority intermodal, Canal St, Chicago, IL to Lathrop, CA (Sometimes this train is symboled as ZCSOA for Oakland, CA). A lot of orange Schneidner trailers. Used to see this train roll through Elmhurst, IL at @1:30pm
ZLTCS - Lathrop, CA to Canal St, Chicago, IL

ZCSSC - Canal St, Chicago, IL to Salt Lake City, UT. A lot of UPS trailers. Used to see this train roll through Elmhurst, IL at @9:45pm.
ZSCCS - Salt Lake City, UT to Canal St, Chicago, IL

CC


Good that the tradition carried through, but the name doesn't have quite the *cool* factor as "falcon"[;)]

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