Lake Shore and Michigan Southern Railway The Indiana Northeastern Railroad's oldest existing line from Hillsdale to Coldwater dates back to the 1830s when the state of Michigan began planning a railroad between
Monroe, Michigan and
Chicago. Rails reached Hillsdale from the east in 1843. The state of Michigan sold the line in 1846 and it became the Michigan Southern Rail Road. Construction of the line continued west of Hillsdale and by 1852 it became part of a line to Chicago through Coldwater and Sturgis, Michigan. This line would eventually become unofficially known as "The Old Road" and in 1869 came under the
Lake Shore and Michigan Southern Railway (LS&MS) when the Michigan Southern Rail Road and the Lake Shore Railway merged that year. IN's connection from Hillsdale to the unincorporated area of Bankers was originally built as the Detroit, Hillsdale and Indiana Rail Road in 1871. A line that ran from Bankers to
Ypsilanti. The line was also acquired by the Lake Shore and Michigan Southern in 1881. The trackage was eventually abandoned northeast of Hillsdale. IN's north–south route from Bankers to Stubenville, Indiana started as the
Fort Wayne, Jackson and Saginaw Railroad in 1870. The route was intended to compete for northbound traffic from Fort Wayne, Indiana. It was also acquired by the LS&MS in 1882. The tracks south of Stubenville were eventually abandoned. IN's seven-mile branch north to Litchfield was part of the
Northern Central Michigan Railroad as a route north from Jonesville to Lansing. It was acquired soon after the company began operation by LS&MS in 1897. The tracks immediately north of Litchfield were abandoned.
Wabash Railroad 4th District Indiana Northeastern's southernmost route from South Milford, Indiana to its
interchange point with the Norfolk Southern Railway in Montpelier, Ohio was originally built by the
Wabash Railroad in 1892 and 1893. The line originally known as its "Chicago Extension" ran from a junction with Wabash's Detroit to Fort Wayne line in Montpelier directly west to
Gary, Indiana terminating at a junction known as Clark Junction. At the junction Wabash trains would then run over the
Baltimore and Ohio Chicago Terminal and
Chicago and Western Indiana switching and terminal railroads to connect with the Chicago area rail network and Wabash's own Chicago rail yards. The line would eventually be designated as Wabash's 4th District and became part of the shortest route for trains between Detroit and Chicago. A connection from Montpelier to
Toledo, Ohio would also be added after 1900. The 4th District would become the first Wabash district to be dieselized (operating with diesel locomotives instead of
steam) in 1950 and the last rail line in Indiana to operate
mixed trains in 1962. Wabash would continue to operate the line until the railroad was acquired by the
Norfolk and Western Railway (N&W), through lease in 1964 and full ownership in 1970. N&W would designate the line as its Gary District and continue to operate it until the 1980s. The line lost its through-train passenger service in the 1930s when the Pennsylvania Railroad wanted to compete in the Chicago – Detroit passenger market. The two railroads reached an agreement to run trains on the PRR between Chicago and Ft. Wayne, IN and then switch to the Wabash trackage for the Ft. Wayne to Detroit portion of the trip. This eliminated the necessity of the Montpelier, OH to Chicago, IL portion of the line.
Hillsdale County Railway On February 1, 1968, the New York Central Railroad and
Pennsylvania Railroad formally merged creating the
Penn Central railroad. Which would mean all the former LS&MS NYC lines would be owned and operated by Penn Central. Penn Central's bankruptcy in 1970 and the dire financial condition of other
Northeast and
Midwest railroads prompted the
federal government to enact legislation creating
Conrail in 1976. Conrail would take over the rail operations of the financially struggling carriers and merge them into a new rail system. However, the Penn Central routes in Hillsdale County, west to Quincy in Branch County and south to Stubenville, Indiana would not be included in the new Conrail system. The State of Michigan, faced with the abandonment of 200 miles of track when Penn Central would cease rail operations, stepped in and create a subsidy program to continue rail service on Michigan trackage that would not be acquired by Conrail. With the assistance of the subsidies the Hillsdale County Railway Company (HCRC) was incorporated on January 27, 1976, and began operations on April 1, 1976, on the former Penn Central routes in Hillsdale County, west to Quincy and south to Stubenville. The company started with routes approximately 60 miles in length and it acquired a handful of first-generation
EMD diesel locomotives. The new railway could interchange traffic with Conrail at Quincy and with the
Norfolk and Western Railway at Stubenville. In November 1976 the State of Michigan expanded its support of rail service by enacting the State Transportation Preservation Act of 1976 (Act 295 of 1976). This further authorized the Michigan Department of State Highways and Transportation (now
MDOT) to purchase Michigan rail lines in jeopardy of abandonment and contract with a rail carrier to be the designated operator of the lines the state acquired. The state purchased from the Penn Central Corporation the tracks that the Hillsdale County Railway was operating on within Michigan and HCRC would be the designated operator.
Pigeon River Railroad In 1980 the
Staggers Rail Act was enacted by the federal government which deregulated the United States railroad industry. The legislation made it easier for railroads to set rates, negotiate shipping contracts, seek abandonment of unprofitable routes and get merger approval. Within two years in 1982 the Norfolk and Western Railway and the
Southern Railway created the Norfolk Southern Corporation; both railways would be completely merged by 1990. N&W also began to rationalize its routes and in 1983 began abandonment of segments of its Gary District in favor of its route from Detroit to Chicago through Fort Wayne.
Indiana Northeastern Railroad In the early 1990s the Hillsdale County Railway was heavily in debt. Its trackage was suffering from deferred maintenance and derailments were becoming a common occurrence. Then in 1992, a 50-car eastbound unit train from South Milford hauled by HCRC derailed near
Hamilton, Indiana costing the South Milford Grain Company $30,000. The grain elevator company's owners decided to assume HCRC's $1 million in debt and it acquired the railway. The grain company then created the Indiana Northeastern Railroad Company to take over the rail operations of the HCRC and its Pigeon River Railroad on December 22, 1992. The IN immediately began to repair and rebuild trackage, spending $3 million on track improvements within its first two years of operation. In 1994 the railroad gained back on-line customers that had turned to trucking and by 1996 the railroad was hauling 3,400 carloads a year of grain, flour, sugar, food products, fertilizer, plastic and other commodities. Since it began the IN has continued to spend millions of dollars to upgrade its tracks with roadbed, rail, bridge and grade crossing improvements which enables the railroad to haul heavier trains at higher speeds. The RUA sold its more than 19 mile long Coldwater to Sturgis segment to Indiana Northeastern in 2004. In 2012 IN applied to abandon this segment due to an absence of traffic. Upon abandonment it was anticipated that the route would become a
rail trail however, local opposition led to the abandoned segment being deeded to the adjoining property owners. IN also continued to supplement the diesel locomotive fleet it acquired from HCRC with rebuilt second generation EMD locomotives. In 2012 the railroad opened a new $1.6 million locomotive maintenance facility in
Hudson, Indiana. The facility includes three tracks, two that extend inside the facility, a lighted service pit, a 25-ton crane and other equipment to service locomotives and railcars. Indiana Northeastern celebrated its 25th year in operation in 2017. Through numerous track rehabilitation projects over its nearly 130 miles of routes and careful management of its resources, the railroad has been a solid, stable and dependable operation capable of handling a diverse flow of traffic in a timely, professional manner. ==Motive Power==