Early history The first attempt to construct a railroad along the Eel River was by the
Toledo, Logansport and Northern Rail Road in 1856; however this company was unsuccessful. In 1872 the section between
Denver and
Auburn was opened, On October 18, 1873, the section between Auburn and Butler was completed. The entire line opened in 1874, completed by the Detroit, Eel River and Illinois Railroad. The company was reorganized in 1877 as the Eel River Railroad.
Wabash Railroad controversy Struggling financially, on August 26, 1879, the
Wabash, St. Louis and Pacific Railway signed a 99-year lease agreement with the railroad. This lease worked out profitably for the Wabash, giving it a direct line from
Detroit to its main line at Logansport, and they used the line as a key connecting link between
St. Louis, Missouri, and the
East Coast. Problems occurred by 1890 with the lease agreement when the Wabash leased the
Peru and Detroit Railway running between
Peru and
Chili to ease movements with a connecting line from Chili to Peru, abandoning the line between Chili and Logansport. Bondholders residing in the Logansport area, in outage, began a ten-year legal battle. A court ruled that the Eel River Railroad's charter was forfeited by its lease to a competing company (the Wabash), leading to the bondholders regaining control of the railroad. The Wabash continued to use the line on an interim lease until 1902, when the Wabash completed a line between
New Haven and Butler.
Vandalia Railroad era With local shareholders back in control, the line was reorganized as the
Logansport and Toledo Railway (L&T) and bought by the
Pennsylvania Railroad in 1901, when operations were transferred to the PRR's
Terre Haute and Indianapolis Railroad. This gave the PRR a route between St. Louis and Toledo, via a connection with the
Lake Shore and Michigan Southern Railway at Butler. In 1905, the L&T was merged with other lines (including the TH&I) to form the
Vandalia Railroad, a new operating subsidiary of the PRR. The Vandalia gained
trackage rights over the Wabash from Butler into Toledo's
Union Station on June 1, 1913, allowing for through freight and passenger service from Toledo to St. Louis and
Chicago. The Vandalia was merged into the
Pittsburgh, Cincinnati, Chicago and St. Louis Railroad on January 1, 1917, and the
Pennsylvania Railroad began operating the branch directly on January 1, 1921, with a lease of the PCC&StL.
Abandonment As the Vandalia line, the track gave purely local services, and business declined as did the quality of the rail line. With an
embargo placed on the line between Auburn and Butler due to poor conditions, abandonment of the line began in 1954 with complete abandonment by 1977. ==Cities and towns along the Butler Branch Railroad==