Ann Arbor Railroad History

Aids, Gifts, Grants and Donations to Railroads, Michigan Railroad Commission - 1919

November 15, 1866 The Blue Line, a second cooperative fast freight line, is organized at Albany. (The Red Line had been organized in the spring, running over the NYC and Wabash) The line will operate over the New York Central, the Great Western of Canada and the Michigan Central to Chicago as soon as Great Western lays a third rail for standard-gauge cars. It will run west of Chicago on the Illinois Central, Chicago, Burlington & Quincy, Chicago & North Western and the Chicago & Alton. The line will own 7,000 cars. (The T,AA & NM will assign a block of cars to this line)

From national politics to railroad building-that's the story of Jim Ashley in a phrase, "John M. Morgan".

It is not easy for a man who has passed the age of fifty and achieved fame in on line of human endeavor to abandon that field and attempt to build a new career in one totally different. A field, which provides many exceptions to this, is politics. There have been many successful educators, business and professional men who have transferred their efforts and talents to the public service. Even here, however, it is rare to find a noted political leader building a new business enterprise. We deal in this story with just a man. The man was James M. Ashley, who served for ten years as Toledo's representative in the Congress of the United States. There he had been counted as a leader amongst the Radical Republicans, and received credit as author of the Thirteenth Amendment to the U.S. Constitution freeing the slaves. After his defeat in 1868, he serviced a year as governor of the Territory of Montana, and then returned to Toledo to take part in the Liberal Republican revolt against President Grant. After this he had been mentioned for several political offices, but had not actually run for anything in several years. As he later put it to a friend, in 1877 he was out of a job in politics, so he decided to build a railroad. Ashley at this time was part of 'Ashley & Pillars', Attorneys & Solicitors of Patents.^¹

Actually, the decision was quite that spontaneous. In 1875 the Ashleys had removed to Ann Arbor, Michigan, where the two eldest children attended the University of Michigan Law School. One son that, while waiting for a train to Toledo (probably at it, where a change was necessary) Ashley was reminded of a long dormant project to build a direct line from Toledo to Ann Arbor records it. As he was then without a permanent business connection, and, like most of his contemporaries, probably believed in railroads as the great business opportunity, the idea of completing the abandoned project no doubt had immediate appeal. And, as usual, with James M. Ashley, an appealing idea meant action.^²

At this point it is advisable to give a brief description of the rail system of Northwestern Ohio and Southeastern Michigan in 1877. Toledo was already one of the major rail hubs of the nation. East, South and West of that city there spread an intricate web of rail communication, which, despite many alterations of name and management, has had few major physical changes to this day.^³

North of the city of Toledo, one direct line ran to Detroit. The rest of the important lines in Michigan, the Lake Shore & Southern, the northern branch of the Wabash, the Canadian Southern, the Michigan Central, the Detroit & Lansing and the Grand Trunk all ran east and west, focusing on Detroit. The only remaining north-south line of importance was the Grand Rapids & Indiana, on the shore of Lake Michigan.^⁴

This situation had two consequences of importance for Ashley's plans. First, as few towns were served by more than one line, there was no competition, and thus rates were high. In the second place, there was no way for cross-state traffic to proceed from one line to another except by going all the way to the Lakes, either east or west.

On August 16, 1855, at a citizen meeting in the city of Ann Arbor appointed a committee to investigate the possibilities of local support for a railroad line. The report was so favorable that another committee was appointed to make a preliminary survey of a route Toledo through Ann Arbor and Howell to Corunna and thence to some point in the Saginaw Valley.^⁵ A few weeks later the citizens appointed several other committees, one for each of the principal towns along the route, to solicit subscribers for the stock. These committees met with such poor success that, for a few years, the whole idea of a north and south railroad through Ann Arbor was abandoned.

Nothing further was done until after the Civil War. A small amount of stock was subscribed in 1865, at one of the many meetings that was held but no real action came until 1869.

At a meeting held in the courthouse on August 23, 1869, the citizens enthusiastically agreed to aid in the construction of the proposed road to the amount of $125,000. The principal leaders at this meeting were: E. M. Gregory, E. B. Pond, J. A. Scott, Captain Beahan, Dr. A. W. Chase, A. Widenmann, R. E. Frazer, James B. Gott, Charles H. Richmond, D. Kramer, E. W. Morgan, A. H. Partridge, James McMahon, and a man named Clancy. Another meeting was held October 20 of that year and plans for the railroad promoted still further. Before many months had passed, however, the company which grew out of these meetings went into liquidation and it was succeeded by another company called the Toledo, Ann Arbor and Northern Railroad, with E. W. Morgan of Ann Arbor as president.

Before the year 1869 had closed Ann Arbor people were convinced of the desirability of the road and a "Railroad Election" was held to give it support. By a vote of 895 to 10 in the city, and vote of 135 to 20 in the town of Ann Arbor, the citizens agreed to back the project to the extent of $100,000 for the city and $15,000 for the town. The vote authorized the issue of bonds to raise the money, a procedure followed in every other town and village along the proposed route. By August 6, $190,000 had been obtained and the right-of-way was then considered to be worth but $50,000. On December 9, the stockholders elected as a board of directors, E. W. Morgan, Silas H. Douglas, Thomas M. Cooley, Charles Tripp, David Henning, Ebenezer Wells, James Clement, R.A. Beal, Christian Eberbach, H. G. Williams, and Joseph Wilcox. Douglas soon supplanted Morgan as president, and the latter accepted the position of secretary while Charles Tripp was chosen vice-president.

The Toledo, Ann Arbor & Northern Railroad Company was chartered in Michigan on November 26, 1869, to build a railroad line from the Ohio State line to Shiawassee County, a distance of 100 miles.

Owosso and Big Rapids articles filed Aug. 16, 1869; capital stock $2,000,000; amendment changing name to Owosso and Northwestern Railroad Company filed Dec. 29, 1871, Termini: Owosso and Big Rapids.^⁶

We take great pleasure in calling the attention of the people of this county to the action taken at Toledo and Ann Arbor, as related in this paper, to secure the construction of the Toledo, Ann Arbor and Northern railroad. The name, it will be seen is changed to Ohio and Michigan Midland railroad. We have other communications, and assuring statements of Ohio newspapers, relative to the arrangement, which we have not space for in this issue, all calculated to increase confidence and establish undoubting faith that the road will ultimately be built from Toledo to Manistee, via Ann Arbor, Howell, Byron, Owosso and Big Rapids. The people on the proposed line are expended to do just as much as if this arrangement had not been effected, and we have no doubt they will do it. Let the work speed on.

WHEREAS, there has been subscribed to the Capital Stock of the Toledo, Ann Arbor & Northern Railroad Company the full number of shares of said Capital, and the subscription books having been closed and the stock distributed among the subscribers thereof as provided by law:

Notice is Hereby Given, That there will be a meeting of the stock-holders of said Toledo, Ann Arbor & Northern Railroad company held for the election of Directors of said company, at the Court House in the city of Ann Arbor, in the county of Washtenaw, on Thursday next, at 10 o’clock in the forenoon of said day. The poll will be open from 10 o’clock A. M. until 4 P. M.

JOHN H. GOTT,
C. H. RICHMOND,
IRA MERRILL,
HARMON ALLEN,
JOSEPH WILCOX,
Commissioners
Ann Arbor, October 11, 1870 – 4:8

Between 1869 and 1874 the right of way was secured from the City of Ann Arbor to the Michigan state line at Alexis, Ohio, in the spring of 1872 roadbed grading commenced, with some bridging and other engineering work finished. In a letter to the stockholders of the new railroad, President, S. H. Douglass, stated: The right of way was located during the autumn and winter of 1871, and early in March of 1872, the contract for grading the road was let to Messrs. Crane & Thomson, who began the earthwork between the above points in April of 1872, and by July, about 30 miles of the road-bed are completed, and the balance of the work is being done as rapidly as the finances of the company permit. Contracts for building the bridges and culverts have been let, and two of the three large and seven of the smaller pile bridges are completed, the timber has been purchased and delivered for nearly all of the remaining bridges, the piles are being driven, and the entire work will be completed at an early day. A large portion of the timber for the culverts is delivered and paid for, and their construction well underway. Contracts for building the cattle guards have also been let, and the work will begin immediately. About 50,000 ties have been purchased; nearly all paid for, and delivered along the line. With over 33 miles of the right of way secured--a large proportion of which has been paid for by stock certificate of the road. The remaining right of way is being secured by purchase at reason prices, or condemned by legal process, as the lands are wanted for the construction of the road.

Station grounds have been given to the Company in York several gentlemen in the city of Ann Arbor have made (Urania), Milan, Reeves (Azalia), Dundee, Ida and Bedford, and liberal propositions for the same. Arrangements have been effected with the city of Toledo whereby the Ohio portion of the road (Toledo & State line RR) is to be immediately built, and the use of the large bridge across the Maumee and the great Union Depot is guaranteed to the Company, on a pro rata basis with the old railroad companies; also the use of the present and prospective tracks of one of the best lines in that city, with other valuable franchises.

President, S. H. Douglass, main problem was getting the subscribers of stock to pay the percentages as required while construction of the railroad progressed along.

Noticing an article copied from your paper of a recent date into the Commercial of this morning, in which you refer to some uneasiness in the minds of your citizens on the question, how the “Toledo and Ann Arbor Railroad” is to be ironed and run when graded, the thought occurred to the writer of this that question would be affected very much by the route the road shall take north from Ann Arbor. If you shall decide to build the road to Saginaw by either of the routes proposed, it might be a question whether any eastern line, entering at Toledo, would be willing to do it, as we have already two lines to the Saginaw Valley, and possibly we may have one or more by the way of Detroit and Bay City and Canada Southern & Port Huron. But should you decide to build your road to Owosso, and there form a connection with the Owosso & Northwestern route to Frankfort, Escanaba and Duluth, there can be but little question that either of the four great eastern lines from Toledo would grab at the opportunity of securing what must be one of the best feeders in the State of Michigan. You are doubtless aware that the road from Owosso northwest is being rapidly built, and that the portion between Owosso and Alma, a thriving town on the Pine River, in Gratiot County, will be completed this season. This road runs through as fine farming and lumbering lands as there are in the State, and there can be no question that the road will pay, especially when we consider that this generation will probably see most of the pine timber cut and marketed on the water courses, and that we must reply on these internal roads for most of our lumber. Now it may be though easy enough to secure the ironing of the road from Toledo to Ann Arbor, but if you wish to make the question doubly sure, secure an early alliance with the “Owosso & Northwestern.” It would seem that Toledo nor Saginaw could have a very deep interest in the building of another line between their cities, but direct your line to the northwest and it is easy to see that Toledo will have a great interest in it.

Note – Our Toledo correspondent is probably not cognizant of the fact that the northern terminus of the “Toledo, Ann Arbor and Northern Railroad” is fixed by the articles of association at Owosso, and that the very connection he suggests was in the minds of organizers. The “East Saginaw and Ann Arbor Company,” having its route from East Saginaw to this city via Corunna, is an independent organization, and the Flushing route has probably been given up.

East Saginaw and Ann Arbor articles filed Oct. 31, 1872; capital stock $300,000, termini: East Saginaw and Ann Arbor^¹⁰

In Oct. 1869, the company secured pledges from Howell and Cohoctah Township to extend the line into Livingston County. Ninety-three Howell citizens pledged $20,000. These pledges ranged from $25 to $2000, but only five percent were ever collected. Cohoctah Township agreed to raise $16,200 by a vote of 166 to 19. This bond issued was recalled and canceled. At this point the directors of the wanted to change the route to South Lyon where favorable interchanges could be made.

The depression of 1872 had a crippling effect, however, and in May of 1874 the line road went into bankruptcy^¹¹. The enterprise had to be liquidated to meet a debt of only $20,000. It is stated that the Toledo and Ann Railroad north to Owosso will be completed, as soon as that portion of the line between Ann Arbor and Toledo is finished -- certainly during the ensuing fall.^¹² The $25,000 required of Isabella County to the Owosso & Northwestern Railroad is already guaranteed and the line will soon be graded to Mt. Pleasant. It is thought that it will be in operation as far as Alma this year.^¹³ On September 28, 1875, the company sold its line at foreclosure sale to several private parties. The Toledo, Ann Arbor and Northern had to be liquidated to meet a debt of only $20,000.

Toledo, Ann Arbor & North Michigan - 200 miles projected, 0 completed, $20,000 in stock

May 23, 1874, proceedings in bankruptcy are to be commenced against this company. This is done in order to bring it into the US court, when, it is believed, delinquent subscribers to the stick can be made to pay up.

Aug. 8, 1874, the assignee in bankruptcy has commenced processing to compel subscribers to stock to pay up.

Sept. 4, 1875, the partly graded roadbed of this road will be sold at auction in Ann Arbor, Mich., Sept. 14, by the assignee in bankruptcy.

The bankruptcy sale of the property of the property of this company, which was postponed from Sept. 14, took place Sept. 27. Benjamin J. Crane, of Ann Arbor, MI., bought the property, consisting of right of way and partly graded roadbed, for $1000.00. It is said that he represents parties who will go on and finish the road.

Dec. 8, 1875, authority says that Mr. Crane, who bought this road at recent sale, has made arrangements by which work will at once resumed on the road, and that it will be completed as a narrow-gauge line.^¹⁴

Jan. 14, 1876, arrangements are being made to organize a new company to complete this road, and Mr. Crane, the contractor who bought the partly graded roadbed at bankrupt sale, offers to dispose of it for $17,000. It is said that parties in Toledo will put in $200,000, if $100,000 can be raised in Ann Arbor. It is proposed to make the road a narrow gauge, and extremely liberal promises are made to the people along the line as to accommodations for local traffic.

Ashley & Pillars, Attorneys & Solicitors of Patents, 4 Fort Industry block (52 Summit – 1877 to 1878)

In June, 1877, new life came to the almost dead project, Governor Ashley of Ohio, then resident in Toledo, acting in connection John B. Alley, prominent Boston capitalist, contracted for all the rights and franchises of the Toledo and Ann Arbor Railroad.

Jim Ashley, Sr., gave mortgages on his Toledo real estate amounting to $114,000 - the estate at that time being worth about that amount - as additional collateral to the entire issue of stock and bonds of the railroad company. The right of way was nearly all graded and supplied with much material, so that the original cost of completing the railroad, to them, was probably about $5,000 a mile, or $250,000 in all.

These parties gave assurance that they would advance two-thirds of the money necessary to put the road in good running order if the people in the towns along the route would donate the remainder. Ann Arbor's share amounted to $25,000. June 15, Governor Ashley came up to Ann Arbor from Toledo and made an address to the citizens gathered in the courthouse in the interest of his scheme. While he was gracefully received, he did not get the support for his cherished project. Neverless, a simple event did what his oratory had failed to do. The subscriptions were coming in very slowly when, July 25, a strike of trainmen on the Michigan Central between Ann Arbor and Jackson was called. Trains continued to Detroit from Ann Arbor and Back, but for two days car wheels west of our city did not revolve. For the first time Ann Arbor people were made to realize how dependent they were on the services of Michigan Central Railroad. It was during those two days that Governor Ashley's subscription list was comfortably filled, the final sum being added within a short time.

On June 9, 1877, the Toledo, Ann Arbor and Northern property was sold to the Toledo & Ann Arbor Railroad. The organizer was of the Company, was B. P. Crane, of Ann Arbor. Apparently, he intended to complete the line as a narrow gauge railroad, but was unable to raise the necessary capital for the project.^¹⁵

- The citizens of Ann Arbor have subscribed $10,000 for the Toledo, Ann Arbor & Northern Railroad, with promises of more.^¹⁶

On July 7, 1877, a letter appeared in all papers in Toledo and Ann Arbor, a letter bearing the signature of James M. Ashley. It announced that he had bought the Toledo & Ann Arbor Railroad, including the franchise, right of way, roadbed and property in Ann Arbor. Also involved in the sale were 72,000 ties and pledges totaling $39,000. To be paid in installments of one-fifth for each eight miles of iron laid. He informed the public that he had borrowed two-thirds of the funds required to complete the road, the loan being conditioned upon his ability to raise a subscription of $80,000. He also needed about three and a half miles right of way. All interested parties were to fill out a note printed at the end of the letter an mail it to Ashley's office in the Ft. Industry Block in Toledo, the Toledo & Ann Arbor office was located in room 4. James Ashley was practicing law from the same address. The notes were payable thirty days after cars were running regularly on the new road. A further communication on August 4, 1877, explained that the Ashley line would be a standard gauge, a return to the original plans as against the narrow gauge plans of Mr. Crane.^¹⁷

The Toledo & Ann Arbor were much in the news in Toledo for the next three or four months. On August 6, the 'Toledo Blade' printed a letter from C. A. King, a prominent local grain merchant, endorsing the road not only as a local necessity, but a public enterprise.^¹⁸ The distinction may be between the Michigan towns, which needed a new outlet, and Toledo, which desired the business.

The eighth of August brought the announcement that Governor Ashley had gone out along the right of way to hold meetings, the first at 'Week's Station,' ten miles out. In the same issue there was another Ashley appeal, and further material by C. A. King, proving that Detroit was out of the way as an outlet for half of Michigan, with Toledo as the logical substitute.^¹⁹ One cannot help but suspect that good many copies of this were distributed up the line.

All of this was ostensibly presented as the viewpoint of those interested in the new railroad, though the prominent position of the various articles might indicate that the editors of the 'Blade' were in agreement with it. On September 15, 1877, however, the paper definitely committed itself in an editorial, Now is the time, which accompanied another letter from Ashley. In this letter Ashley announced the receipt of pledges of $1000 each from C. A. King, Horace Walbridge, M. A. Scott, and the firm of St. John and Norton. Toledo's share, he said, would be $40,000, and the city would be canvassed on September 17, 1877.^²⁰

Apparently, this article did not stir up as much popular response as had been hoped for. On the sixth of October the 'Blade' had again to remind it readers of the potential value of the Ann Arbor road to Toledo. For the first time, mention was made of possible extension to Owosso. The editors complained that Ashley was fighting alone what should be the battle of all citizens of the city.^²¹

Oct. 12, 1877, The required amount ($50,000) having been secured, work was begun at Dundee, MI, this week. It is said that Mr. Ashley has secured assistance from some Boston parties.

A reporter interviewed Ashley on November 6th; he was then leaving for Boston to confer with Eastern Capitalists. The time for raising the $80,000 had already been extended. Toledo was still $8,000 short, but only $1,800 remained to be pledged along the line, and the former congressional leader was confident of success.^²² Ultimately the amount actually collected, as distinguished from pledged, and was only about $50,000.

The Eastern Capitalists seem to have been primarily one man, former congressman John B. Alley^²³, a wealthy shoe manufacturer of Lynn, Massachusetts. Alley was a conservative business manufacturer, who demanded full security even from his former colleague. In return for the money to complete the road Ashley had to pledge not only the entire issue of stock and the bonds of the new company to be formed, but also his own real estate in Toledo, valued at $114,000.^²⁴

After this, there was no mention of either Ashley or his road until the twenty-eighth of November. A dispatch from the Ann Arbor 'Courier' announced that on the November 27th there had been formed in that town the Toledo & Ann Arbor Railroad Company, with James M. Ashley of Dundee as President, A. W. Hamilton as Secretary. It is the intention of the company to push the road through to a completion at the earliest possible moment, and workmen are now at work near Dundee. As nearly all the roadbed is completed, many of the ties have been got out, and some of the bridges made, the work of finishing the road ready for the iron can soon be accomplished.^²⁵ Ashley persistence had carried it through.^²⁶

Two major problems remained outstanding after the financing had been completed. One, of course, was that of laying the rails and actually putting the line into operation. The other was to secure a connection from Alexis, the end of the old Toledo and Ann Arbor roadbed, and the City of Toledo. Each was an operation, which would require the full energy of any man, even Ashley, for a considerable period. Two Jim Ashleys were now needed, so two were provided.

The Toledo and Ann Railroad Company, has been organized by the election of James M. Ashley of Dundee, Michigan, President, and A. W. Hamilton, Secretary, The Ann Arbor 'Courier' says 'It is the intention of the company to push the road through to a completion at the earliest possible moment, and workmen are now at work near Dundee. As nearly all the roadbed is completed, many of the ties have been got out, and some of the bridges made, the work of finishing the road ready for iron can soon be accomplished.'^²⁷

James M. Ashley, Jr., the eldest son of the Governor, was at this time twenty-four years of age. He was a giant of a man, six feet four, powerfully built, and with ability for self-expression only slightly impaired by a speech impediment.^²⁸ He now became General Superintendent of the Toledo & Ann Arbor, and took personal charge of the construction.^²⁹ Possessed of much of his father's ability and all of his energy, he drove the work steadily forward. By the fifteenth of March 1878, he could report that the track was laid from Dundee to Milan. Bridges had been finished over the Macon and Raisin Rivers, and one train was in operation hauling ballast, ties and iron, and there was enough of the last on hand to complete the track to Toledo. The schedule called for the laying of one mile per day in April.^³⁰

1878 The Saginaw Valley and St. Louis road, extending from East Saginaw to St. Louis, 34 miles, has been built during the past year and the cars are running. The extension of this line to Grand Rapids was in contemplation at the period of the inception of the enterprise, and it may yet be built.

1878 The Owosso and Northern road is a new project, with Frankfort, on Lake Michigan as its ultimate objective point. It has been graded for the distance of forty miles northward from Owosso. The proposed road crosses the Flint and Pere Marquette road at Evart, and the Grand Rapids and Indiana at Clam Lake [Cadillac].^³¹

Note. In 1873, the Canadian Southern Railroad ran the first passenger route through the Dundee area. This line was later sold to the Detroit, Lima & Northern, in 1898, (pre- DT&I). It is mostly likely from this line where Ashley received building material and railroad equipment. When the Detroit & Lima Northern purchased the Canadian Southern Railroad line from Trenton to Dundee, a 'wye' track is mention as a connecting point. Dundee was the end of the line for the Canadian Southern and turning of engines for have been required. The Lake Shore & Michigan Southern may have also been a receiving point for material, but no interconnection was ever made with this railroad at Federman (Monroe Junction).

Ex-Governor Ashley, of Toledo, who is constructing the Toledo, Ann Arbor and Northern railroad with a fair prospect of completing it this coming season between Toledo and Ann Arbor, has been in Lansing to hear what the business men of that place have to say in favor of making the line of the road to that place. We understand that Mr. Ashley will also visit Owosso if citizens express a desire to have the road come here. If there be such a desire here, it is about time it was made manifest for there can be no doubt that Mr. Ashley means to push the road through somewhere.

By May 16, 1878, track was completed between Alexis and Ann Arbor. James Ashley and others have filed a certificate of incorporation with the Secretary of the State of Ohio, of the Toledo & Ann Arbor Company, capital stock $450,000, in shares of $100. On June 21, the first train of freight into Ann Arbor arrived, on June 24, 1878; regulator train service was begun between Toledo and Ann Arbor. Meanwhile, Big Jim had not been idle.^³³ The Toledo & State Line Railroad had built the required line from Alexis to Toledo, in 1872. Toledo & State Line Railroad was built as an extension of the Woodville & Toledo Railroad, was chartered in 1870, from Elm Street to connect with the Detroit, Toledo and Canada Southern and the Lake Shore and Michigan Southern Railroad, at Alexis. Articles of Association were filed 6/30/1872 as an Ohio Corporation, 5.65 miles of line from Toledo to State line. In operation August 5, 1871, consolidated May 1, 1878, operated by Pennsylvania Company until 5/28/1878. This company was subsidiary of the Pennsylvania Railroad Company, so Ashley went to Philadelphia. He was not going completely without a plan. During the days when he had been a prominent figure in Washington, he had come to know Secretary of War Edwin M. Stanton, but also the Assistant Secretary in charge of government railroads. Tom Scott, Scott had resumed his job as President of the Pennsylvania Railroad after the war, and it was to his office that Ashley made his way.^³⁴

Scott promptly dropped all his business and invited Ashley to be his guest for his stay in the Quaker City. Finally Ashley got around to inquiring about the Toledo & State Line Railroad property. Scott said he had all the securities in his safe, and wanted to know why Ashley was interested. When he was told that the intention was to establish a line to and beyond Ann Arbor, he tried to persuade Ashley to drop the matter, as it would not pay. He told Ashley that he would find a regular railroad a different proposition from the pre-war Underground Railroad. In the latter, he said, every time you delivered a colored man in Canada you could declare a dividend.^³⁵

Ashley persisted, however, and finally Scott said that he would let him have the line. When queried as to the terms he replied that Ashley should name his own terms. This suited the latter exactly, for he had no money with which to pay for the road. In the end, Ashley walked out with the bonds of the Toledo & State Line, paid for only by his promise to give Ann Arbor bonds in return later. $300,000 worth of the latter was later handled over to the Pennsylvania for property supposed to be worth $1,500,000 though Scott said at the time that he did not consider it worth 300,000 cents. Later, when the Wheeling & Lake Erie and other railroad lines bridged the Maumee River into North Toledo, the terminal and track rights acquired proved very valuable indeed.^³⁶

With the Toledo & State Line went the right to use the Pennsylvania Station in Toledo, and the engine, which later became Toledo, Ann Arbor & Northern No. 1, as well as George Pucipher, engineer, and Mike Purcell, fireman. They, the oldest operating employees of the road, were among the causes of the strike that marked the end of Ashley's control of the Ann Arbor Railroad of the road, fifteen years later.^³⁷

The company completed an agreement of Consolidation with the Toledo & State Line Railroad. This consolidation of the sections of railroads gave the Toledo & Ann Arbor Railroad a line from downtown Toledo, Ohio to Ann Arbor, Michigan, about 45 miles in length, and a value of $450,000. The railroad then purchased four used steam engines.

Not only did this purchase bring their railroad well into the City of Toledo. But put their enterprise fully upon its feet, but the revenue they derived from renting track privileges to the Michigan Central for its coal traffic with the Columbus and Toledo railroad (which also used the Pennsylvania. terminal at Toledo) was sufficient to pay a large interest on their purchase price from the start, and soon on a sum several times as large. Mr. Alley wished to sell the property, and make a bargain with Calvin S. Brice, afterward a senator from Ohio. As Brice separated from Alley and Ashley, however, after a talk of the subject, he made a remark that changed the history of the parties. "You know," said he, "that with me nothing is done till it is done." Mr. Ashley was puzzled by this remark and said, "What do you suppose he meant by that?" "Simply this -- that he does not consider himself bound by anything said thus far, unless he wants to take advantage of it."

After a pause and reflections on the part of both, which no doubt were of a serious character Mr. Ashley said: "Now, Mr. Alley, if Brice is not bound neither are you; and I want you to give me the same offer you have given Brice."

Mr. Alley agreed to this and Mr. Ashley made a loan sufficient to take up the railroad securities from Mr. Alley's hands almost immediately and thus for the first time acquired the real ownership of the property. Still his tenure of it was by slender and precarious; for he pledged the railroad securities to a Mr. Hale for $300,000 to raise the necessary funds.

This visit to Philadelphia would seem to have removed the last serious obstacle to completion of a railroad from Toledo to Ann Arbor. But there was to be one more bit of excitement before that end was achieved. On June 1, 1878, the Toledo & Ann Arbor was completed except for a short stretch in the vicinity of Alexis, covering the crossings of the Lake Shore, and of the Canada Southern, both Chicago to Detroit lines. On Sunday, June 2, the crossing of the Lake Shore was completed, that day being selected because there was no train schedule to interrupt. All was finished except a few feet on either side of the Canada Southern right of way. At this point the latter road backed two engines over the spot where the crossing was to be made, supported these with a large force of about 100 men, and forbade the crossing.^³⁸ With money payments waiting on the opening of traffic, and no funds to fight a long court case, the Ashleys were in trouble.^³⁹ The Ashley working crew called for reinforcements, which were quickly raised and rushed to Alexis. There was a brief free for all, in which the newer railroad's force of about 400 men was victorious. The Canada Southern group was driven back, and held at bay while the crossing was completed. Ashley on Monday then appealed to Judge Rouse for an injunction for bidding further opposition, on the grounds that the old Toledo & Ann Arbor had owned the right of way eight days before the Canada Southern. The injunction was granted, and Sheriff Linton served it at once. At nine o'clock James M. Ashley went to Ann Arbor in a special train, and returned to Toledo with the Directors of the Company and their wives.^⁴⁰

April 24, 1878, Pennsylvania Company agrees to sell entire stock of Toledo and State Line Railroad to John B. Alley to be merged with Toledo and Ann Arbor Railroad; Pennsylvania Company to be paid in $80,000 bonds of merged company; lease of Toledo and State Line to Pennsylvania Company canceled.^⁴¹

May 1, 1878, Toledo and State Line Railroad became part of Toledo and Ann Arbor RR, this also reported as May 28, 1880.^⁴²

On May 10th, 1878, editor Beal of the "Ann Arbor Courier" reported "about twenty workmen are busily engaged in constructing the road bed for the Toledo and Ann Arbor railroad just south of town. The track was laid into Ann Arbor on Thursday, May 16th.

The first excursion train over the Toledo and Ann Arbor RR from Ann Arbor to Milan on flat cars May 17th, 1878. With regulator passenger service began in Dundee on May 18, 1878.

On June 8, 1878, James M. Ashley and others have filed a certificate of incorporation with the Secretary of the State of Ohio, of the Toledo & Ann Arbor Company, capital stock $450,000, in shares of $100.

The first through train from Ann Arbor to Toledo departed the morning of Monday, June 3rd, carrying Gov. Ashley and a complement of company and local officials, many of whom were accompanied by their wives. The general public was offered its first opportunity to enjoy the new direct route to Ohio with the announcement, appearing in the paper for June 14th, of an excursion to a "red ribbon" (reform club) rally in Toledo planned for June 20, 1878. The fare from Ann Arbor was $1.00, from Milan $.75, and from Dundee $.50.

On the twentieth of June 1878, an excursion on the line took place, when 1,360 Ann Arborites came to Toledo, aboard ten passenger, two flat cars and one baggage car, being met there by the Toledo Cadets, with band, and the Toledo Temperance Reform Club. Then on June 28th saw six hundred men and women, including, by special invitation, the Toledo Beach and Bar Association, boarded the morning train for Ann Arbor. The train of nine cars also carried Milverstedt's 16th regiment band, and, on a flat car at the rear, AA gun of Captain Hopkins 4th battery. The latter kept booming salutes all the way up the line.

The excursionists were surprised at the smoothness of the road, which was comparable to roads, which had been operated for years. A ride of two and half-hours brought them to Ann Arbor in time to witness the conferring of 136 degrees, in the University of Michigan commencement. After a lunch, provided by the ladies of Ann Arbor, the Toledoians wandered about the University City until the train was ready to leave. The jaunt was pronounced a complete success.^⁴³

June 21, 1878 the first passenger train on the Toledo & Ann Arbor arrives in Ann Arbor.

In 1878 the Toledo & Ann Arbor opened a depot with the Chicago and Canada Southern RR, in Dundee. The two railroads crossed at First Street (southeast side) would be a possible location for this depot, the Chicago & Canada Southern RR already had a depot about a half mile west of this location. The Ann Arbor Railroad had a depot on the north side of the Raisin River at the turn of the century. Regularly scheduled service was commenced on the first of July 1878. Scheduled daily passenger service to Toledo commenced on July 8th, with a train departing from Ann Arbor at 6:30 AM. The railroad ran on "Columbus time" which was seven minutes faster than Ann Arbor time. The railroad completed its turntable at Ann Arbor around the first of July. The device was promptly overwhelmed by a crowd of boys wishing to observe first-hand how it worked. In the ex-suing confusion, Austin McGuire suffered a badly crushed foot.^⁴⁴ The effects of the new road on the surrounding country were immediate and obvious. The first carload of wheat into Ann Arbor was delivered July 26th and the first carload departed August 6th. In a year's time an Ann Arbor paper was able to announce that competition offered to the Michigan Central by the Ann Arbor was so effective that the rate on a ton of coal had fallen from $2.25 to 55 cents. It further credited the line with an increase in the Ann Arbor grain market from 128,000 bushels for the year ending June of 1879, to 480,000 bushels for the year ending in June of 1879. This was due to the fact that the producers received six cents a bushel more by using the Toledo route. Toledo & Ann Arbor RR timetable of June 27, 1880, reported the following stations; Toledo, *^⁴⁵North Toledo, Detroit Junction (Alexis), *Hawthorn, Samaria, Seola, *Lulu, Monroe Junction (Federman), Dundee, *Macon, Azalia, Milan, Nora, *Urania, Pittsfield, and Ann Arbor (no mileposts given). Four scheduled trains with average running time from Ann Arbor to Toledo about two hours, with a local train in each direction. In 1883 an editorial stated that the only danger to Ann Arbor is that the Toledo road might fall into the hands of Michigan Central. The Ashleys are credited with the pluck and ability to hold the fort. Still later, when Cadillac was requested to aid in the northward extension of the line, it was said that savings on the coal rates alone amounted to more than the $150,000 Ann Arbor had raised for construction.^⁴⁶

After the road was in operation between Toledo and Ann Arbor, Ashley operations may be divided into two parallel struggles one to retain control of the Company, and the other to extend the line north into the virtually untapped northwest portion of the Lower Peninsula. In order to avoid interruption of the continuity of either story, the latter will here be outlined, after which the control fight will be sketched down to its final denouement in 1894.

The first move to extend the road got under way less than a year after the completion of the original line. The northward plans inherited from the old company called for a drive in the direction Owosso, some sixty miles northwest of Ann Arbor.^⁴⁷ Ashley, however, decided to make his first extension northeast, to Pontiac. Here he would gain contact with the Grand Trunk, thus picking up some more of the exchange traffic and track rental income, which was proving so valuable on the southern portion of the line.

In 1878, James Ashley and Dr. John Stanton joined forces to promote a railroad running from Ann Arbor though Pontiac to Caseville, the home of Ashley's friend, Francis Crawford. But before Ashley could charter the line from Pontiac to Caseville, Dr. Stanton and his friends chartered two other lines, one running from Oxford to Altmont (April 27, 1879) and one from Pontiac to Port Austin (May 13, 1879) called the Pontiac, Oxford and Port Austin Railroad.

On September 26, 1878, Ashley chartered the Toledo, Ann Arbor & North-Eastern Railroad, to build a line from Ann Arbor to Pontiac, a distance of 33 miles. With J. J. Green as President, L. W. Staton as Secretary, J. D. Norton as Treasury, and J. Teneyck as Attorney. The 'Argus' carried a notice that Eastern Capitalists, presumably Mr. Alley again, would provide the means to complete the extension if the right of way and $40,000 were donated locally.^⁴⁸ A surveying party was reported running the line, headed by Professor Charles E. Greene of the University of Michigan.^⁴⁹ It was pointed out that the line would connect with the Detroit, Lansing & Northern, Flint & Pere Marquette, Detroit & Milwaukee and Detroit & Bay City, as well as the Grand Trunk. The Toledo and Ann Arbor Railroad having decided it would be advantageous for their company to connect with the intersection of the above railroads, The 'Argus' opinionated that the matter could be arranged in thirty days if the citizens would cooperate. A meeting was held in Pontiac to raise $10,000 on June 12. Ashley addressed the meeting and announced that ten miles of right of way had been obtained and $3000 had already been raised in South Lyons, fifteen miles northeast of Ann Arbor. Later the paper complained that farmers were raising land prices on the new right of way, and noted that, as Ashley's means were largely involved in the completed section of the road, local aid must carry the matter through. On August 8, the call went out for a grand rally. The meeting was to be held at the courthouse, with Judge Cooley speaking, and $6,000 still needed.^⁵⁰

1878 Bridges - Dundee – Truss – wood 132 feet bridge; Dundee – span – wood 125 feet; Milan – span – wood 100 feet; Ann Arbor – span – wood 52 feet; 2 express & baggage cars, 4 passenger cars; Oct. 6 Richard Nash, conductor, and Richard Adams, brakeman, Milan; cattle on track caused derailment – both killed; Dec. 7 Herman Viets, brakeman, Dundee; coupling cars - killed

May 1, 1879, Northwestern Ohio Railway sells 0.07 mile from Ash Street to North city line in Toledo to Toledo and Ann Arbor Railroad.^⁵¹

3 locos - 30 tons, 3 pass – 4 wheel, 15 box cars, 16 flat cars, 16 stations (13 Michigan), 47.07 miles of track

1880 Toledo and Ann Arbor – 4 locomotives average weight 66,000 pounds, owned by John B. Alley, Boston, also 2 baggage and express cars, 3 passenger cars, 28 freight cars. 66 employees, 6 telegraph operators, 2 conductors, 3 engineers, 3 foremen, 2 brakemen, 2 baggage men, and 9 station agents.^⁵²

May 7, 1880, work has begun on the bridge over the Huron River at Ann Arbor, and grading of the extensions between Ann Arbor and south Lyons.

June 21, 1880, Wabash interest let contract for Butler & Detroit Railroad to General Jack S. Casement and Daniel T. Casement of Painesville, Ohio; Jack Casement is famed as builder of Union Pacific Railroad.^⁵³

The line of the Toledo & Ann Arbor railroad passes through the grounds of the Orchard Lake military academy, on the Pine Lake side. Work in that spot began last Monday, and it is expected that trains will snorting through to Pontiac by December 1.^⁵⁴

September 17, 1880, Pennsylvania Company Executive Committee reports Toledo and Ann Arbor Railroad has declined to sign contract for use of Pennsylvania Railroad terminal at Toledo.^⁵⁵

Sept. 17, 1880, it is reported that John B. Alley, of Boston, who has been chief owner of the road, and provided the money for its construction, has sold out his interest. And that it has been bought by parties who will extend the road from Ann Arbor northeast to Pontiac, about 35 miles, whence a connection may be had by the Michigan Air Line with the Grand Trunk. It has been reported that the Grand Trunk would assist in this project and use the whole road for a connection with Toledo. But the construction of a line in the interest of the Wabash to Detroit will give it access to most of the Toledo traffic without any further expenditure on its part, and persons connected with the company deny that it has anything to do with the Ann Arbor project.

The Canada Southern Railway uses tracks from Toledo to Detroit Junction (Alexis 5 miles)

Construction moved fast, for Ashley reported the line finished between Ann Arbor and South Lyons by May 1881, with normal service by July 29, 1881. Measuring from present MP 45.5, the line left the present line at MP 47.3, Leland (Emory) depot was MP 52.4, Emory, Wash. County, named for Emory Leland, 1831, post office opened February 20, 1884, named Emory. Worden was MP 54.9; the line crossed Five-mile road about three quarters of a mile west of Pontiac Trail. At that place it crossed a farm owned by, E. S. Worden, a station was built on this farm and named 'Worden'. Train brought mail to this station for the 'Peebles Corners' post office. Apparently through this association with the name 'Worden', 'Peebles Corners' became 'Worden'. Peebles Corners was at the intersection of Five Mile road, Pontiac trail and South Lyons MP 60.4. This line represented an additional 14.9 miles of line.

A circular has been issued announcing the consolidation, Oct. 14, 1880, of the Toledo and Ann Arbor RR Company and the Toledo, Ann Arbor and Northeastern RR Company, resulting in the organization of the Toledo, Ann Arbor and Grand trunk Railway Company.^⁵⁷

The Toledo and Ann Arbor Railroad and the Toledo, Ann Arbor and Northeastern Railroad merged resulting in the organization of the Toledo, Ann Arbor & Grand Trunk Railway October 14, 1880.^⁵⁸

But, for once, the Ashleys were forestalled. The Grand Trunk ran its Jackson branch to South Lyons and met the Toledo, Ann Arbor and Grand Trunk Railway there^⁵⁹. The Governor made the best of the matter. Arranging for Grand Trunk Traffic to pass over his road to Toledo, getting regular passenger service from that city to Portland, Maine, and securing permission from the Ohio city of Toledo, run a joint Ann Arbor-Grand Trunk spur down Water Street to connect with the Wabash freight yards.^⁶⁰ Most of the trackage was already installed by other railroads, a small bridge and a short length of trackage was all that was required.

This failure to complete the extension into the Michigan thumb area as planned compelled the abandonment of a further Ashley project, the Pontiac, Oxford & Port Austin, running from Pontiac to the tip of the thumb of the Lower Peninsula.^⁶¹ This road was later finished by other people, and operated for some years.^⁶² Though cut out of Pontiac, the Ashley interests had gotten the traffic exchange with the Grand Trunk.

Mr. Hale intended to get control of the property, and so sure was he of doing this that he himself built a railroad -- the Pontiac, Oxford and Port Austin -- designed to connect with the Ann Arbor. Payment of the $300,000 was duly demanded and on the last day when payment could be made without default -- when at three o'clock Mr. Hale intended to go through the form of selling out the collateral for the purpose of him buying it -- Mr. Ashley walked into his office at 2:45 PM with a certified check for the money. Mr. Hale turned pale from the shock of getting his money when he did not want it, but was obliged to surrender the notes and bonds and stocks. He soon afterward fell ill and died of disappointment over ill success of his scheme, it was said. Mr. Ashley raised the money to pay Hale by a loan from old "Commodore" Garrison. The Commodore did not take a collateral note, but said: "You leave with 400 bonds. If you pay me in a year I'll give you the bonds, if not I'll keep them."

In August of 1882, Dr. Stanton died, which was Ashley aid in building the line to Pontiac. Several months later Ashley pulled out of the Thumb Area and sold his graded rail line from South Lyons to Pontiac, 23.6 miles, to the Michigan Air Line Railroad, the line had been completed by Ashley's crew to New Hudson. The partly graded line was sold on October 25, 1882, for $45,000, this line later became part of the Grand Trunk Railroad System. The Michigan Air line Railway finished the line and listed passenger service in the Jackson Weekly Citizen on Oct. 30, 1883.

1883 Depot at foot of Mulberry St. - Pennsylvania Station, General Offices - Fort Industry Block

Reached South Lyon Aug. 1881 – trackage 61 miles, locos 4 – 30 tons, 2 – 20 ton, passenger cars 9, box cars 80, flat cars 90; Wabash, St. Louis and Pacific rental $1200 & expenses; Oct. 9^th, Abraham Regal, mason, Dundee, intoxicated, laying on track, killed

During February 1883, floods on the Maumee River in Toledo, Ohio brought total destruction to the trestlework along the Maumee River, and the consequent suspension of all business - out of our connections, with Pennsylvania and Hocking Valley Railroads at Toledo.

During 1883, the railroad rebuilt it trackage along the Maumee River and increases the rail size from Toledo to Alexis from 52 pound to 67-pound steel rail.

WALSTON H. BROWN, WILLIAM B. HOWARD, and COLUMBUS R. CUMMINGS v. THE ESTATE OF CHARLES P. DIBBLE, DECREASED

Michigan Reports – Michigan Supreme Court Vol. 65 Feb. 3, 1887 to May 5, 1887 page 520

On the twenty-third day of November, 1883, the consolidation entered into a contract with the Toledo & Ann Arbor Railroad Company to obtain the use of the line of the latter company from Dundee across the State line to Toledo, covering the entire line and only line which the Toledo & Michigan Company has been organized to build, and the south-eastern part of the Toledo & Milwaukee road. The purpose was stated to be for--

“Avoiding the expense of building an independent track over so much of the line adopted by it as already covered the track of the Ann Arbor Company.”

The Toledo & Michigan Railway Company was a Michigan company, organized in 18979 to construct a road from the State line, where crossed by the Toledo & Ann Arbor Railroad, to Allegan.

It is claimed that in October, 1883, the Toledo & Milwaukee Railway Company became consolidated with an Ohio company, called the Toledo & Michigan Railway Company, alleged to have been incorporated in Ohio, to construct and operate a railroad from Toledo to the point on the former road was to start. This new combination was to called the Michigan & Ohio Railroad Company.

The first train ran from Toledo to Marshall on one of the latter days of November. But the company never built any road beyond Dundee, and the whole distance from Dundee to Toledo, more than half of which was in Michigan, was run over the Toledo & Ann Arbor road, under an arrangement made on the twenty-third of the same month of November, 1883. This was not a lease of the section from Dundee southward, but was a permission to use the track and appurtenances in common with the Ann Arbor road, at a rate of $800 a month for the first year, and $1,000 a month thereafter, and a fair share of the cost of maintenance. The road was to continue in the possession and control of its owners, and all persons employed by either road were to be under the direction of subject to suspension or dismissal by the Ann Arbor Company. The privilege was subject to termination on 30 days' notice, upon any default. After five years, the Ann Arbor Company could terminate it, and after five years, the Ann Arbor Company could terminate it, and after 18 months the licensee could do so. All local business between Dundee and Toledo was to belong to the Ann Arbor Company.

Toledo, Ann Arbor & Mackinaw – The first board of directors is as follows; H. W. Ashley, E. A. Todd, Jr., T. W. Whitney, I. A. Fancher, F. S. Chandler, F. Gossman. They have elected the following officers; I. A. Fancher, President; H. W. Ashely, Vice-President and General Manager; F. S. Chandler, Secretary and Treasurer. The headquarters of the company will be at Owosso, Michigan.^⁶³

The Toledo, Ann Arbor & North Michigan transfer steamer was put in commission this week, thus opening the through freight line via the North Michigan and the Green Bay, Winona & St. Paul roads.

The steamer was fully described in the Railroad Gazette on Aug.19. The vessel is the first of two building, and is 267 ft. long on deck, 52 ft. beam and 18 feet molded depth, drawing l2 ft. of water, with a displacement of 2,550 tons. She has twin screws in the stern and a screw in the bow. The vessel can carry 22 loaded freight cars. The ferry transport is from Frankfort, Mich., across Lake Michigan to Kewanee, Mich., 60 miles.^⁶⁴

March 14, 1883, a derailment in Ann Arbor caused 12 cars to go down the embankment, with one person killed.

July 20, 1883, This Company lately has offered in the London, England, $600,000 of its first-mortgage bonds, being the balance remaining unsold of the total issued of $1,260,000. The bonds bear 6 percent, 40-year issue.

On the 27th of November 1883, the Board of Directors approved and ratified a lease made by the President of this Company to the Michigan & Ohio Railroad. For the joint use of our tracks, side tracks, station houses and transfer grounds, between Toledo, Ohio and Dundee, Michigan, a distance of twenty-two miles.

The early completion of the Belt Road, (Toledo Terminal) which is secured, will give to the Company, in addition to our present Pennsylvania and Hocking Valley connections. Competitive connections of great value with all the railroads on the south side of the Maumee River, (New York, Lake Erie & Western, the Baltimore & Ohio, the Cincinnati, Hamilton & Dayton, the Ohio Central, and the Toledo & Indianapolis).

The older idea of extending the line via Owosso was now revived. The idea was as old as the idea for the Toledo to Ann Arbor section; the original incorporation papers filed in 1866 were for the Toledo, Ann Arbor & Northern, not just the Toledo & Ann Arbor.^⁶⁵ The latter name had been changed to Toledo, Ann Arbor & Grand Trunk in 1883. A new company was now formed, under the title of Toledo, Ann Arbor & North Michigan, to take on the task of the Owosso expansion^⁶⁶. The plan inherited from the original company was build to Owosso itself, but the Ashley scheme did not stop here. The new plan called for a sustained drive northwest across the Lower Peninsula to Lake Michigan, somewhere between Manistee and Charlevoix. To forward the work Ashley had secured the graded line of the defunct Owosso and Northwestern, from Owosso to St. Louis. The Owosso & North Western Railroad was chartered on December 22, 1871, originally chartered as the Owosso & Big Rapids Railroad on August 16, 1869, 81 miles long. The 1873 atlas of Michigan shows a line running west of Elsie from a connection with the Jackson, Lansing & Saginaw RR (MC) between Juddville Road and Cronk Road, connection was made by running rights on the Jackson, Lansing & Saginaw RR to Owosso Junction. In 1883 the Owosso and Northern railroad sold its charter rights and graded line to the Toledo, Ann Arbor and North Michigan.^⁶⁷ This company had reported only one year to Michigan Railroad Commissioner, in 1877. In that year President Thomas D. Dewey reported that the proposed terminus were Owosso and Frankfort, on Lake Michigan, a line of about 150 miles. Grading was nearly complete to St. Louis, 40 miles;^⁶⁸ proposed route would have crossed the Flint & Pere Marquette at Evart, and the Grand Rapids & Indiana at Clam Lake. On Dec. 28, 1883, a connection with the Detroit, Grand Haven & Milwaukee Railroad was installed, near Owosso Junction (1875 map atlas). By April 11, 1884, track lying had reached Elsie (14 miles), June 3, 1884, the track reached Ithaca, the line was finished and opened for business, in St. Louis, on June 27, 1884. The contractors, who tracked that old roadbed, were permitted to open it to local traffic, running mixed passenger and freight trains over the line. The first one went north to St. Louis on June 25th, 1884, to the usual accompaniment of artillery salutes, church bells and brass bands. Profits from the traffic, if any, were to go to the parent company. On the eighth of August the Toledo, Ann Arbor & Grand Trunk and the Toledo, Ann Arbor & North Michigan was merged, taking the name of the latter. The joint capital was listed as $3,640,000.50. The Ashley plans did not confine the road to Frankfort or any other specific place, as a terminus, however.

During June of 1883, Ashley had gone on another fund raising tour over the proposed line. Bonds of the Toledo, Ann Arbor & North Michigan were to be subscribed for, with Livingston, Shiawassee and Gratiot counties each expected to take $135,000 worth. By the nineteenth, Howell, in Livingston County, reported that it had raised $40,000. By the end of September 1883, it was announced that the necessary capital had been provided.^⁶⁹ Work was beginning on the ninety-five miles from Ann Arbor to St. Louis.^⁷⁰ Apparently the relations with the Grand Trunk were to help the process, providing a connection between Durand and Owosso, until such time as the Ashley road could build a parallel route.^⁷¹ A similar agreement was to be made with the Detroit & Lansing, using its tracks from South Lyon to Howell. Ehen this latter agreement failed to materialize, Howell was told it would have to raise another $20,000 to secure the new line.^⁷² This was promptly done.^⁷³

1884 Macon branch 2 miles; locos 7 – 30 tons, 3 – 20 tons, caboose 2, trackage rights on Michigan Central Toledo (Union Station) to Alexis; Michigan and Ohio RR track rights Toledo (Manhattan Junction) to Dundee rental $9600 annum; Great Eastern Fast Freight Line, Boston Mass. – T, AA & GT supplied cars as its quota; March 14^th William Fey, brakeman, Ann Arbor, unknown accident

During February 1884, flooding in Toledo caused total destruction of the trestlework along the Maumee River. During 1884, property was purchased in Toledo with a view of making additions to the transfer grounds at the junction of the Wheeling & Lake Erie road and securing a larger dock frontage on the Maumee River and also for building engine-house and machine shops.

The Pontiac, Oxford & Port Austin road has been completed and considerable traffic is expected from this line.

On June 27, 1884 the Toledo, Ann Arbor and North Michigan reached St. Louis. General offices Fort Industry Block, using Pennsylvania depot

On the 24th of June, 1884, the agreement for consolidation, which had been formally, approved the respective boards of directors of the "Toledo, Ann Arbor & North Michigan Company" and the "Toledo, Ann Arbor & Grand Trunk Company" was submitted to a vote of the stockholders of each of said companies. And was duly ratified and confirmed by unanimous vote of each Company, then legal name of the corporation will be 'Toledo, Ann Arbor & North Michigan Railway Company'. The joint capital was listed as $3,640,000.^⁷⁴

There only remained to build the section from Ann Arbor to Durand, replacing that which the Detroit, Lansing & Northern had refused to rent. The contract with W. V. McCracken & Co., for the construction of that part of our road between Durand, Shiawassee County, and Hamburg, Livingston County a distance of 32 miles, was let in 1884, to be completed by November 1, and was usable by winter time. The railroad then accepted this section of the line and work was completed by the railroad the following year.

The contractor opened the line from Owosso to St. Louis in October 1884. The contractor who tracked that old road bed was allowed to open it to local traffic, running mixed passenger and freight trains over the line.^⁷⁵ The first one went north to St. Louis on June 25^th, 1884, to the usual accompaniment of artillery salutes, church bells and brass bands.^⁷⁶ Profits from the traffic, if any, were to go to the parent company.^⁷⁷ Connection was made to remaining railroad by running rights over Grand Trunk Railway. The construction of the remaining link from South Lyons to Owosso is under contract to be completed in 1885.

The Circuit Court of Appeals last week sustained Judge for the Ricks, of Ohio, in his decision fining James Lennon, a Lake Shore & Michigan Southern engineman $50 for refusing to haul cars going to the Toledo, Ann Arbor & North Michigan, at the time of the strike on the latter road, in March, 15, 1893. This decision is final, as the Supreme Court has refused to consider the case. In his decision on this case Judge Ricks discussed the general question of the "right to quit" (six other enginemen, having resigned at the time that Lennon tried to aid the strikers without resigning), but it did not come up such a shape as to demand exhaustive treatment, and Judge Ricks turned it off with very few words. The essential point in the charge against Lennon was discrimination, in refusing to move cars for one party, while not refusing to move any others. Another case of interest before the United States courts is that of the Brotherhood of Railroad Trainmen against the Receivers of the Philadelphia & Reading, which was presented to Judge Dallas at Philadelphia last Monday. The proceeding seems to increased be a premeditated attempt of the Brotherhood to get a decision as to the ''rights of organized labor" on a railroad, without much regard to whether there is or is not a grievance of any consequence in this particular instance. The case appears to have been managed in a bungling manner. In the first place, two or three lawyer, apparently not well known in Philadelphia, asked for an order restraining the receivers from discharging certain employees because they belonged to a Brotherhood, but the name of the Brotherhood was carefully concealed from the reporters. On further hearing, however, it was shown that the employee had been at work for the road only one week, and had signed an agreement not to belong to a Brotherhood. The status of the second employee was precisely same, but the railroad company had lost the paper he signed, and agreed not to dismiss him. Then the lawyers for the Brotherhood withdrew both names and wanted to substitute in the petition the name of a new man, but this the judge would not allow. Grand Master Wilkinson then asked leave to appear. But the judge ruled that he including had no standing in court. Evidently the Reading has been rigid in requiring employees to renounce the Brotherhood and to put the agreement in writing, and Mr. Wilkinson's Brotherhood is going to challenge the legality Regular of such action.^⁷⁸

A reorganization plan for this property was formulated this week by a committee consisting of George W. Murray Thomas A. McIntyre, William H. Hale, Joseph Richardson and Henry S. Redmond of New York. It is proposed to have a new company issue $7,000,000 50 year 5 per cent bonds. Of this $5,767,100 will be used to exchange for bonds of the present company, leaving $1,232,900 for reorganization and future purposes. Now 5 per cent non-cumulative preferred stock to the amount of $2,850,000 will be issued for old bonds, accrued interest and for the cash assessment on the old stock. New common stock to the amount of $6,500,000 will be exchanged for old stock upon the payment of $5 cash a share. The exchange of new securities for the old divisional and consolidated bonds will be on a basis which it is asserted is equitable to the various liens. The annual fixed charges on the new mortgage bonds will be $288,355 against $420,670, the present fixed charges, an annual saving of $132,315. The bonded debt for a mile of road under the plan will be $2.045, against $26,654 at present.

The publication of this plan started into activity other committees, representing conflicting interests of the company. Henry Clews, representing first mortgage divisional bondholders, and G. W. Quintard. Chairman of another committee, announces that his committee is preparing a plan of reorganization and security holders are requested not to assent to the present plan, pending the publication of this second plan. The Railroad Gazette

Opposition has developed on the part of certain interests of the stockholders to the proposed reorganization plan of the Bondholders Committee briefly outlines in a previous issue. A committee, of which James A. Blair, of New York, is Chairman, has been formed which claims to represent a majority of the outstanding stock and is preparing a new reorganization scheme. The Railroad Gazette

A short time before the road Went into the hands of a receiver, in April, 1893, the company bought from Post, Martin & Co. 1,000 freight cars and 10 locomotives for about $600,000. Car Trust security was given on the rolling stock bought and the company also undertook to give Post, Martin & Co. a lien on the old equipment of the company valued at some $300,000 or $400.000, Post, Martin & Co. assuming the balance of $60,000 due on that equipment. The bondholders have maintained that the railroad company had no right to give a lien on this equipment prior to the lien of the mortgage securing the bonds, and Judge Picks has tendered a decision in favor of the bondholders, which entirely releases this equipment from the lien of the car trust. The court has also ordered the receiver to return 500 cars and five locomotives to Post, Martin & Co. on August 1, and the other half of the equipment on August 15, and no more regular payments will be made on the car trust. A master has been appointed to determine -what amount is equitably due to Post, Martin & Co.

Receiver Wellington R. Burt, of Toledo, has filed in the United States Court, at Toledo, an answer to the recent suit of President James M. Ashley, in which be claimed that the company owed him over $400,000 for unpaid salaries and money advanced. Receiver Burt makes a general denial of all the claims in Mr. Ashley's petition.

Two boards of directors were elected last week in Toledo, Ohio. The annual meeting was called for April 20, but the Vote for directors was not begun on that day before six o'clock, when one of the two factions contending for control of the property withdrew from the meeting. On April 2l the representatives of the bondholders’ committee elected the following directors; Amos N. Eoo, John Jacob Astor, George N. Qunintard, Edward Simmons, Robert M. Gallaway, H. Livingston Rogers, Alfred de Cordova, Charles R. Quiney, T. W. Childs and E. S. Kissam. The three examiners appointed by the court cerified to this election and Wellington R. Burt, Chairman of the meeting, recognized the directors so elected as the legal directory. The board afterward organized by the re-election of Amos F. Eno, President; John Jacob Astor, Vice-President; F. S. Chandler, Secretary; and D. C. Tate, Assistant Secretary and Transfer Agent. The stockholders' committee proposed the following as directors and they report that 30,517 shares of stock were voted for their election as directors on April 20, James A. Blair, William Martens. George W. Murray, George H. Sheldon, Joseph Walker, Jr., Thomas C. Platt, E. P. Goodwin. G. K. Clark, Jr., George N. Crouse, of New York, and William M. Green and Edwin J. Mc M of Ohio. The bondholders' committee claims that 20,000 shares were voted for the directors nominated by them.

Ex-President Ashley has filed a suit against that company to recover $322,000 for salary as President, and sums alleged to have been advanced to the company.

Opposition has developed on the part of certain interests of the stockholders to the proposed reorganization plan of the Bondholders' Committee briefly outlines in a previous issue. A committee of which James A. Blair of New York, is Chairman, has been formed which claims to represent a majority of the outstanding stock and is preparing a new reorganization scheme.

Some details of the reorganization plans proposed by the bondholders' committee have been published during the past week. It is proposed to foreclose the divisional bonds, issuing in place thereof a $7.000.000 mortgage, hearing four per cent. The amount of the stock assessment has not been determined, but it will perhaps be $10 a share. This question is one of the causes of delay in perfecting the plan. Preferred stocks will he issued to an amount between $3,500,000 and $4,000,000. It is proposed to reimburse the assessment with preferred stock at par. Preferred stock will probably be issued in settlement of interest in default on the first mortgage and will be given to the holders of the first mortgage in consideration of the scaling of interests from six to four per cent. The floating debt is about $1,250,000, independent of the car trusts, a large portion of which represents companies' indebtedness against which the consolidated fives were hypothecated. The committee holds a resignation of all the Ashleys and a complete release of any and all their claims against the company.

The decisions, of Judges Ricks and Taft in the strike cases were delivered in the United States Court at Toledo, Ohio, last Monday. Judge Ricks released seven of the Lake Shore enginemen who quit work rather than move the obnoxious Ann Arbor freight holding that they had a perfect right to resign at the time they did; and imposed a fine of $50 and costs on James Lennon, who twice refused to handle cars from the Ann Arbor road, but did not resign his place. Lennon was let off with a light punishment; he disclaimed the intention of disobeying the law. His case has already been appealed. Judge Ricks discusses at great length the right of a Court of Equity to decide a case like this, but the essential question (whether quitting without notice in disobedience of the injunction) is treated very briefly, and the warning to the men that they could not always decide for themselves, regardless of the interests of the public when to quit work, which Judge Ricks delivered to the men when they were arrested, is ignored. The question of the greatest popular interest, there receives no illumination from Judge Ricks at present. He gives no warning, however, that if there is any further disobedience of his injunction the case "will be dealt with in a spirit and purpose quite different" from this. Of course every sensible men and law-abiding citizen must regard the substance of this decision as just. As enginemen who tries to discriminate between different connecting roads is an enemy to the whole public. But the right to quit is so immeasurably broader question, and on this point the present case would fail perhaps fail on technicalities. As these technicalities will doubtless be strenuously argued when the appeal is heard we may not got much light on the vital question even then.

Judge Tuft continues the injunction against Mr. Arthur ordering him not only to refrain from actual discrimination between roads, but to refrain from endeavoring induce employees to do so. The Judge evidently accepts the averment of the complainant that Arthur has a controlling influence over his members, and that his notice to divisions to “obey the laws of the brotherhood" in effect empowered the members, if it did not command them, to begin the boycott. Mr. Arthur testified that his assistant signed his (Arthur’s) name to this notice without due authority, but the Judge, so far as we have seen does not discuss this point. But all persons combining to carry out this boycott rule of the brotherhood are punishable under Section 5.440 of the Revised Statutes which imposes imprisonment and a heavy fine for conspiring to commit any offense against the United States. Judge Tuft continues:

The probable inconvenience or loss which its employees might impose on the complainant company the Ann Arbor by withholding their labor would, under ordinary circumstances be a legitimate means available to them for inducing a compliance with their demands. But the employees of defendant companies (the Lake Shore) are not dissatisfied with the terms of their employment. So far as appears those terms of mutual benefit to employer and employed. What the employees propose to do is to deprive the defendant companies of the benefits thus accruing from their labor unless the companies will consent to do a criminal and unlawful injury to the complainant. Neither law nor morals can give a man the right to labor or withhold his labor for much a purpose. Under the principle above stated Arthur and all members of the brotherhood engaged in causing loss to the complainant are liable for any actual loss inflicted in pursuance of their conspiracy.

Judge Taft defends his order directing Arthur to rescind a boycott notice which had already been issued, saying that there was absolutely no other way of maintaining the status quo. Judge Taft's decision like the other, will have general approval, for this boycott role of the engineers not only runs against the common law, as all boycotts do, but conflicts with a plain and just provision of the Interstate Commerce law (Sections 3 and 10). But at the came time the decision affects no one but Mr. Arthur and the power of the rank and file of the brotherhood to Indulge in illegal discrimination without any formal rule and without any visible action of any leader remains about as strong as ever. There has been considerable boasting about power and the possibility of its being used, but we shall not be surprised if this decision has a very wholesome effect, for there is a large body of men in the engineer's brotherhood who will see and acknowledge the justice of the principle involved in it.

A bill asking for the appointment of a Receiver for the railroad was last week filed in the United States Court at Toledo, 0hio, at the instance of the Craig Shipbuilding Co., of Cleveland. The Court appointed Wellington R. Burt; of Saginaw, Mich. Mr. Burt is the son-in-law of J. M. Ashley the President of the road. This action of the Craigs was brought to secure the balance due on the two transfer boats, Ann Arbor No.1 and No.2, built by them for the road, and which transport freight cars across Lake Michigan.

It appears that the Brotherhood of Locomotive Engineers acknowledges a moral responsibility, if not a legal one, for the boycott which it attempted against the Toledo, Ann Arbor & North Michigan road last spring, as it is announced in a press dispatch from Toledo that Mr. Arthur has paid the costs amounting to $6,000, of the suit brought against him by the Ann Arbor road for $300,000 damages, and the suit has been dismissed. It will be remembered that the Brotherhood engineers on the Lake Shore & Michigan Southern tried to divert freight from the Ann Arbor road, against which they had a grievance, and that one of them was fined for refusing to handle cars going to the Ann Arbor road. The regulations of the Brotherhood are such that the Chief (Mr. Arthur) could virtually approve of such a boycott without taking any positive official action, and it was thought that the suit would be defended on this technical ground; but the outcome proves otherwise, and it is, as claimed by the road's attorney, a decided victory over the boycotters.^⁸²

Two boards of directors were elected last week in Toledo, Ohio. The annual meeting was called for April 20, but the Vote for directors was not begun on that day before six o'clock, when one of the two factions contending for control of the property withdrew from the meeting. On April 2l the representatives of the bondholders’ committee elected the following directors; Amos N. Eoo, John Jacob Astor, George N. Qunintard, Edward Simmons, Robert M. Gallaway, H. Livingston Rogers, Alfred de Cordova, Charles R. Quiney, T. W. Childs and E. S. Kissam. The three examiners appointed by the court certified to this election and Wellington R. Burt, Chairman of the meeting, recognized the directors so elected as the legal directory. The board afterward organized by the re-election of Amos F. Eno, President; John Jacob Astor, Vice-President; F. S. Chandler, Secretary; and D. C. Tate, Assistant Secretary and Transfer Agent. The stockholders' committee proposed the following as directors and they report that 30,517 shares of stock were voted for their election as directors on April 20, James A. Blair, William Martens. George W. Murray, George H. Sheldon, Joseph Walker, Jr., Thomas C. Platt, E. P. Goodwin, G. K. Clark, Jr., George N. Crouse, of New York, and William M. Green and Edwin J. Mc M of Ohio. The bondholders' committee claims that 20,000 shares were voted for the directors nominated by them.

Ex-President Ashley has filed a suit against that company to recover $322,000 for salary as President, and sums alleged to have been advanced to the company.

The contract was recently let for building a short line from Hamburg to Hamburg Junction, Mich. At present the tracks of the Grand Trunk are used between these points, about five miles, and with the building of this section the company will secure a through track of its own from Toledo to Frankfort on Lake Michigan. Drake, Stratton & Co. of Philadelphia has the contract for building the line and is to complete the work as promptly as possible. The construction of the line will involve considerable heavy grading^⁸³

This company has secured the right of way for a new line from Hamburg to Hamburg Junction, Mich. 3 1/2 miles, and also for a new line from Howell Junction, Michigan, and one mile long. It has also laid 3 1/2 miles of track on the Lake George cut-off and also on that from Temple to Clarence, Mich. A further cut-off is being constructed from Ann Arbor to Whitmore Lake a distance of 7 1/2 miles. All these lines are being built to eliminate bad curves and grades.^⁸⁴

Grading has been completed on the two and one half miles of new terminal lines at Toledo, and grading is in progress on the line from Temple to Clarence, Mich., three and one-half miles The latter is a relocation, as is also the cut-off from Lake George, Mich., south one and one-half miles, upon which grading has been completed. Surveys are in progress for a 14-mile cot-off from Ann Arbor to Hamburg Junction, Mich., to eliminate bad curves and grades.^⁸⁵

Locomotives 10 - 30 ton, 3 – 20 ton, caboose 4; April 8 broken rail passenger derailed, 8 injured

In 1885, the citizens of Howell had by a vote of 427 to 6 granted the railroad $20,000 in bonds payable in 10 years at 6 percent interest. It was hoped that with this grant the railroad's repair shops would be located here. However, Owosso with a population of 2,500 (Howell's population was 2,176) received the shops. Owosso granted the railroad $25,000 with an additional "bonus."

Wesley A. Dudley and Manley Dudley v. The Toledo, Ann Arbor and North Michigan Railway Company

Michigan Reports – Michigan Supreme Court Vol. 65 Feb. 3, 1887 to May 5, 1887 page 722

The present case shows that the defendant railroad company contract with W. V. McCracken & Co. to construct and grade a portion of its railroad. McCracken & Co. sublet a portion of the work to McLane & Wilson, and they in turn entered into a subcontract with one Harvey S. Heywood. The plaintiffs were engaged in merchandising, under the name of Dudley Brothers, at Byron. The largest portion of the claim for which a recovery was had in the court below was for the indebtedness of the subcontractor Heywood. Their claims against the company which they hold in their own right are based upon orders drawn by Heywood, a copy of one which is as follows:

“Dudley Bros.: Please let C. H. Closeman have merchandise to the amount of two dollars and fifty cents. October time. H. S. Heywood”

On orders such as this they delivered to the man presenting them goods from their store amounting to $149.73. Heywood charged the orders directly to the person in whose favor they were drawn as so much paid to him. The question presented is, did these orders, so drawn and received by Dudley Brothers, constitute an assignment of the claim of the labor for the amount due him for labor from Heywood? We do not discover how it can operate as an assignment of the laborer's claim for labor performed for Heywood. Heywood treated the order as payment to the laborer; and the labor had no claim against Heywood, after receiving the amount the order called for, either in goods or money. The case cannot be distinguished from Martin v. Michigan & Ohio R. R. Co., 62 Mich. 458.

At the time of construction of the Ann Arbor Railroad, Bancroft, MI, which already had the pre-Grand Western Railroad in town, they lost the Junction point by being too sure that the air line from Byron to Owosso would ultimately bring the road there and the town would not grant such concessions as the railroad company needed.

The contract has been let for a branch of the road extending from Manistee to Sherman, Mich. The line is about three miles long, and is built to connect the Ann Arbor with several large mills at Sherman. The line is being constructed by the people of Sherman.^⁸⁶

This company has been organized to succeed the Toledo, Ann Arbor and North Michigan. The Directors elected are: W. R. Burt, G. W. Quintard, J. E. Simmons, R. M. Galloway, R. C. Martin, C. J. Lawrence, John Jacob Astor, R. D. Murray, Benj. Perkins, E. W. Tolerton, A. C. McClure, A. W. Wright.^⁸⁷

C. H. Braman & Co., of Toledo, has the contract for building a new line between Ithaca and Alma, Mich. This is one of the several new lines building by this company this year to shorten the distance of the present main line across Michigan. Although only five miles long this new line will shorten the present Ann Arbor line between the towns named fully 2½ miles. The cut-off at Howell Junction, Michigan the construction of which bas been in progress for some weeks, will be ready for traffic shortly. The company is also building a new line between Hamburg and Hamburg Junction, which will give it a line of its own between these two towns, the Grand Trunk tracks having been used heretofore between those two towns.

In Oct. 1885, land was purchased for shops at Byron, a few miles south of the Detroit & Milwaukee RR.

Dec. 11, 1885, the repair shops & freight house at Toledo, were destroyed by fire, with two locomotives and several cars -- loss $25,000.

The Frankfort and Southeastern Railroad Company, termi from the village of Frankfort in the county of Benzie to the upper Weldon bridge in the township of Weldon, Benzie county, proposed length 20 miles, articles filed Dec. 2, 1885

Here the previous history of the crossing of the Canada Southern repeated itself. Everything was completed without especial difficulty except the crossing of the Detroit, Lansing & Northern line at Howell. That road, like the Chicago & Canada Southern in 1878, objected to the crossing, and attempted to resist by force. The Ashley men, headed by James M. Ashley, Jr., had everything ready except the crossing itself by January 1, 1886. As in the previous fight, the chosen day was Sunday, when there was no scheduled train service. This had the advantage of giving the Ann Arbor forces unimpeded use of their own line, and also greatly reduced the chances of a damage suit, growing out of interrupted service on the other.

Howell crossing: A condemnation of the right of way to cross under the Detroit, Lansing & Northern, was made in probate court and before the Detroit and Lansing Railroad had time to appeal, Ann Arbor Railroad employees took possession of the junction, and put in an underground crossing by force. The Supreme Court of Michigan over turned this condemnation of right of way, when appealed by the DETROIT, LANSING & NORTHERN, due to varies errors, defects, and jurisdictional insufficiency.

The Central Trust of New York, filed a bill of complaint on Oct 19 in the United States Court at Toledo, asking for the foreclosure of a mortgage for $2,120.000, which is a first mortgage on a part of the road, and also praying that a new receiver be appointed and the present officers of the company be restrained from disposing of any of the property.^⁸⁸

A good deal of work is now being carried on by this railroad, continuing the policy begun a year or two ago of reducing grades and building short connecting lines on various parts of the road. At Toledo, where important new terminals are being built, the rails have now been laid on the new line to Cherry Street, where the new station building of the company is being erected. At Whitney, O. where a new line is being built to shorten the distance by the present line, several steam shovels are employed and a large force of men and the work is being pushed rapidly. At a number of other points along the line work of a similar nature is going on.^⁸⁹.

On Oct. 20 the company commenced to operate the new Ann Arbor Whitmore Lake Cutoff, which has been built this season by A. McArthur and Co., of Chicago, contractors, under the direction of Mr. John White, Engineer. The location was made in 1895 by H. E. Riggs, then Chief Engineer. The total length of the new line is 7 6/10 miles, saving 2 5/10 miles in distance over the old line. The total curvature on the new line is 185 degree 7 minute, saving 24 degree 46 minute. The maximum curvature of the new line is 2 degree on the old line was 6 degree. The grades on the old and the new lines are shown below:^⁹⁰

Menominee and St. Paul – work is begun, according to report, at Menominee, Mich., on the belt line to be used by this company and the Ann Arbor. The M. & S. P. was recently incorporated to build from Menominee west 300 miles, to St. Paul. W. R. Burt, of Saginaw, Mich., President of the Ann Arbor, is an incorporator (Sept, page 650).^⁹¹

On Jan. 2, 1886, South Lyon agent, Phillips of the TOLEDO, ANN ARBOR AND NORTH MICHIGAN had recruited 120 men, on a very hours notice, and shipped them hurriedly to Howell to take part in the battle for Annpere crossing.

On Saturday evening of January 2, 1886, by fraudulently obtaining an illegal injunction, and by force, a large force of men, shovelers, carpenters, and men who carried their tools in their hip pockets left Toledo on a special train for Howell. A second wave left on Sunday.^⁹² The crossing was to be made under grade, that is the Ann Arbor track passed under the right of way of the Detroit, Lansing & Northern. This meant a much digging and the construction of an eighty-foot bridge for the rival road. Nearly three hundred men worked all day Sunday, led by the two elder Ashley sons, Jim and Harry, the latter having become general manager of the road. By nightfall much of the excavation, cutting through an embankment, 14 feet above the general ground level, was finished, and the bridge which raised the grade of the defendant's road about 12 inches, was complete. As this meant that the Detroit, Lansing & Northern could resume service without interruption the next day, it looked as if the battle had been won, and Henry Ashley returned to Toledo. The crossing point is described as; beginning at a point two thousand two hundred and seventy-seven feet west, fifty-six degrees and four degrees and four minutes east, from a point six hundred and seventy-one feet north from the quarter post on the east side of section number one, in township two north, of range three east, on the line between the township of Marion and the township of Genoa, in said county of Livington: thence south, fifty-six degrees and four minutes west, one hundred feet; thence north, fifty-six degrees and four minutes west, sixty-six feet; thence north, thirty-three degrees and fifty-six minutes east, one hundred feet, -- to the place of beginning; and being a strip of land sixty-six feet wide.

The rival road had assembled a watching party almost equal to the working force, though, as the `Toledo Blade' put it, not so well prepared. Monday morning, shortly after he arrived in Toledo,^⁹³ Henry received a telegram from his brother, announcing that the other side had been reinforced, and there was grave danger that the crossing might be retaken. Henry replied with a hold the fort, for I am coming, with greased wheels.^⁹⁴ Both sides ignored the legal aspects of the struggle for the moment, and concentrated on force. The Detroit, Lansing & Northern, led by general manager John Mulliken, recovered the crossing, and attempted to refill the cut by running in trainloads of gravel and dumping them where they would do the most good. When the Ashley reserves arrived, they mounted a counterattack, which cleared not only the cut itself, but also the track for some distance on each side. They then tore up the other road's line on both sides to prevent any further gravel trains from getting in range, and rapidly the work on their own road. At this point both railroads bethought themselves of the courts. The Detroit, Lansing & Northern service had, of course, be been completely disrupted by the breaking of their track. Among the trains, which had failed to get through, was one carrying the United States Mail. This road therefore had James M. Ashley, Jr., arrested for obstruction of the mails. After ANNPERE battle the 300 warriors joined happily in offering up the person of President Ashley to a US Marshal who hustled him, under arrest, to the federal court in Detroit. There he was put under a peace bond of $200.

On the other hand, James M. Ashley, Sr., with his crossing a fait accompli, got an injunction filed on Jan. 6, 1886, to preventing DETROIT, LANSING & NORTHERN from any further interference with his operations, at the crossing point. This settled the matter. Mulliken took his force up the line to wipe out a dam that was in his way, leaving the Ashleys in possession of the field.^⁹⁵ Jim Ashley, Jr., later stated that the Company saved $7,500 by making the crossing,^⁹⁶ and as the fine for obstructing the mails was only $100,^⁹⁷ it is not likely that he overly regretted the incident.

The `Railroad Gazette', January, 1886, stated the following about the Detroit, Lansing & Northern; "the Toledo, Ann Arbor & North Michigan Co. last week attempted to make a crossing over this Company's track near Howell, Michigan. And in order to prevent interruption tore up the track for some distance on each side of the crossing and cut the telegraph wires. Companies brought a large force of men to the disputed crossing, and for some time an armed conflict appeared probable. The case has now been transferred to the courts, the Detroit, Lansing & Northern having brought suit against the Ann Arbor Co. for an injunction, and also to recover $50,000 for damages done to the road, and for interruption of travel. The Ann Arbor co. claims that it made no unnecessary trouble, but cut a passage under the other road and put in a good bridge." On Nov. 17, 1886, the Supreme Court of Michigan, ruled on the 'Howell Crossing', awarding $10,000 to the DETROIT, LANSING & NORTHERN and ordering the crossing to stay intact and ordered neither railroad to disturb the other except in harmony with the court order.^⁹⁸

The railroad entered Howell from the southeast, through the center of town, and then veered north parallel to Byron road. The railroad fared many problems within the village, not the least of which as many sinkholes, before the route left the town on the northwest. As the route passed Grand River at the site of the old tollgate, it would cut the old fairgrounds in half. The livestock area would be separated from the grandstands, so the railroad paid for the removal to a new site on the northeast corner of the present M-59 and Byron road. During the 1890's the fairground was foreclosed when payments couldn't be made.

The cemetery at Barnard Street was in the path of the tracks. Stones and monuments were removed from the area and stored for future placement when all the bodies were removed to the present cemetery site. Relatives were responsible for the removal, with some compensation from the railroad. In removing bodies, people were careless to dig up their own relatives and carelessly threw dirt aside. Several bodies couldn't be found and the track ran over the top of them.

Howell because of a steep grade that would be necessary, a two block "tunnel" bore would have to be dug from Barnard Street to just east of the depot site. Special crews had to be brought into the village to dig the tunnel. These workers were housed in run down buildings on north Michigan. Once the bore had been dug, plank boards were placed above the tracks, thus creating a "tunnel” for several years the plank boards, North street, were used as a though fare. The "tunnel" was used to curb the unpleasant smoke odor in one of the best residential neighborhoods. Hopefully, the tunnel would cause horses not to be frightened; however horses were frightened by the sounds under the street.

Per the Ionia Standard, "Howell can have the Toledo & Ann Arbor car shops if they whack up $25,000, ten acres of land. Build a 'wye' for the company and an elegant residence for President Ashley, board the employees of the road free of charge for 100 years, and buy a corner of the earth for their use. Howellites ought not to object to this liberal proposition. More than that, they should be perfectly willing to change the town name to Ashleyville."

The railroad built a $3000 brick depot, because the railroad "thought highly of Howell," they used brick instead of wood, which was the customary material of the day. Other facilities built by the railroad included an engine house, water-tower, a brickyard located at the southwest corner of Page Field, a loading platform for milk cans and a large covered structure for coal cars, that would be pushed up on to the structure by a locomotive, and the coal would be dumped from the bottom of the car.

An interesting sidelight in the "Howell Crossing" is that John Mulliken had been a clerk in Ashley's drug store in Toledo, thirty years before. It was said that he had no doubt often dandled young Jim on his knee, and that now he undoubtedly wished that the had dropped him.^⁹⁹

With the conclusion of the "Howell war," the Toledo, Ann Arbor & North Michigan had a complete line from Toledo to St. Louis, Michigan, except for the stretch between Owosso and Durand, the Toledo, Ann Arbor & North Michigan reached Durand in 1885, which was completed later in the year. The railroad paralleled the Grand Trunk, whose right of way the Ashley road had used until its own line was ready.^¹⁰⁰

Even before this affair had been settle. The next move in the northwestern drive got underway. It was announced that the line north of Mt. Pleasant was under contract for completing by July 1. Mt. Pleasant was reported to be expecting a boom.^¹⁰¹ Originally he had planned to start at St. Louis and build directly north and then angle northwest to reach Mt. Pleasant, completely ignoring the city of Alma, which was to be three miles to the west of the road. This attracts the attention of, A. W. Wright, Alma's leading citizen. When his attempts to attract the Ashley enterprise his way failed, he organized a railroad of his own, the Lansing, Alma, Mt. Pleasant & Northern. It was designed to run roughly parallel to the Ann Arbor, and with its access to the Detroit, Lansing & Northern, and the Michigan Central at Lansing, it would be a most serious competitor for the traffic of Northern Michigan. Mr. Wright was no fool in the operation, for started to build, not from Lansing, but from Alma north. Thus he was in position to play the Ashleys against the Detroit, Lansing & Northern, which was already into Alma via its line from Grand Rapids to Saginaw, and which would be interested in the new road as a feeder.^¹⁰² During 1885, Wright managed to build 11 miles of railroad line.

Mr. Wright, a wealthy lumberman, could afford to build himself the others had to come to him. One of associates at this time was William N. Brown. Mr. Brown was making a trip east, when it seemed certain that the Wright road would link either with the Detroit, Lansing & Northern or the Michigan Central. He happened to Henry Ashley, whom he had known previously, and had come to respect. The latter persuaded him to visit his father in New York before he gave his pinion to Mr. Wright. Shortly thereafter, Brown met the manager of one of the largest systems in the state, who told him that Jim Ashley was one of the worst scoundrels still outside of the state prisons. This of course made him doubt the value of his proposed visit, but while on the train he met his old friend, Major Mc Kinley, of Canton. When Brown mentioned his problem, the future president heartily endorsed Governor Ashley as one of the Grand men of the country, and urged Brown to see him by all means. After the meeting brown returned to Mr. Wright, and persuaded him that the people to join were Toledoians.^¹⁰³ The Ann Arbor reports for 1885 and 1886, contain the documentary support for this, the former announcing that satisfactory agreement had been reached with, Lansing, Alma, Mt. Pleasant & Northern while the latter shows the new first vice-president and board member of the road to be Mr. A. W. Wright.^¹⁰⁴ The physical evidence lay in the lie of the road's right of way. From St. Louis it curved sharply back to the southwest to Alma, whence it resumed its northwesterly course over the Wright line to Mt. Pleasant.^¹⁰⁵ What might have been a fatal setback, had been turned into a major stride forward, largely attributable to the personality of the governor and the loyalty of his friends.

This proved to be the last major hurdle in the completion of the main line of the Toledo, Ann Arbor & North Michigan. Now, however, there began to appear a possibility that this road might become the nucleus of the Ashley railroad system, dominating the trade of a large part of Northern Michigan. On December 4, 1885 Lansing, Alma and Mt. Pleasant Railroad leased to the Toledo, Ann Arbor and Northern Michigan Railroad for 99 years.

Sept. 1886, a branch line was built to Stone Quarry. This point became Macon Jct., named for the river at this point; Dundee Cement now owns this area.

In 1886, the Michigan & Ohio Railroad leased 20.9 miles of running rights over the Toledo, Ann Arbor and North Michigan Railway, from Dundee to Manhattan Junction, then 2.1 miles over the Wheeling & Lake Erie Railroad to their Cherry Street station, which was located next to the Ann Arbor's Cherry Street station.

The Gratiot Journal says the agents of the Toledo, Ann Arbor & Northern Railroad Company have served an injunction on C. J. Rumsey, of Muir, for forbidding his putting any more logs in the Maple River near where their road crossed the stream. It looks as though the Ashley gang proposed to try to run the whole state. This looks like a malicious pieced of business. Even if the injunction is dissolved the delays of law will seriously damage Mr. Rumsey, who will be obliged to defend the matter in courts while the winter and excellent sleighing is slipping away.

On May 7, 1886 the Toledo, Ann Arbor and Northern Michigan Railroad absorbed the Lansing, Alma, Mt. Pleasant and Northern Railroad.

The next step in the extension of the main line was the formation of the Toledo, Ann Arbor & Cadillac, to build the line from Mt. Pleasant to Cadillac, proposed length of 63 miles, with capital stock of $630,000.^¹⁰⁶ This Company was organized and built by a group of Cadillac businessmen, led by Jacob Cummer, a prominent lumberman who desired a connection with Toledo.^¹⁰⁷

Late in 1886, Ashley purchased the abandoned logging railroad, the George & Muskegon River built in 1876, starting at the Muskegon River on the north end and a southeastward direction toward Farwell, with several branch lines. A section of The Lake George and Muskegon River from Muskegon River to a point 4 miles west of Farwell was utilized as the road went into Redding Township, but later, as traffic became heavier, the steep grades and soft sinkholes had to be bypassed.

The railroad commissioner gives the distance completed as 63.6 miles. The 1889 and 1891 'Michigan manuals' give distance as 63.8 miles. The present distance between depots at Mt. Pleasant and Cadillac is 63.2 miles. Between Mt. Pleasant and Farwell the line is on its original grade, as is the section between the Muskegon River and Cadillac. There was extensive relocation work between Lake George and Temple. Ashley connected to the east end of the Lake George & Muskegon River grade at about MP 193.8 and also had a connection built between the west end of the Lake George & Muskegon River grade and approximately MP 202.3. Between MP 196.7 and MP 202 the grade was about 1/4-mile southwest of the present line. Lake George depot apparently originally was located at or near Sheldon's Crossing near MP 193.0. The Company's report for 1887 announced that the rails had been laid but the station had yet to be built, and there was some ballasting still to be done. It was promised that the new section would be ready for operation by June of 1888, and the Construction Company would be consolidated with the main organization at that time. It was estimated that the traffic originating from this section might run to half a million tons annually, mostly lumber and forest products.

In 7/16/1886, per 'The Clare Press', Clare willing and anxious to have it cross here. A largely attend and enthusiastic meeting was held at the town hall last Friday evening, the object being the question of securing the new railroad for Clare. N. Bicknell president and A. J. Doherty were appointed secretary. Messrs. Perry, Wheaton, Gibesson, Beebe, and others made speeches.

It is stated that Vernon and Gilmore has each been asked to contribute $4,000.00 or more for the road, but that neither would do so if Farwell route was selected.

On 4/22/1887, surveyors arrived at Clare for depot layout, work on the rail line to begin on both ends (Mt. Pleasant & Clare) on Monday. The railroad is to cross the F&PM just above Boorn's Mill, with possible site for the depot being at the railroad crossing or at Fifth Street; the F&PM depot was located near the downtown area. Coming into Clare from the south, the railroad grade goes through the marshes of the Little Tobacco River. Martin Clone had nearly sixty men working for weeks hauling fill, along with thirty teams of horses who were transporting sand on the sluice scrapers. They were filling in the grade through the marsh, which was ten feet below grade.

Charter announced 4/8/1887, by the Toledo, Ann Arbor & North Michigan to build a line to connect with and be a branch of Toledo, Ann Arbor & North Michigan, at Mt. Pleasant to Big Rapids.

Citizens of Harrison were titillated as rumors began to circulate of that the Toledo, Ann Arbor and Cadillac passing through on its way to Houghton Lake. Indeed, when Harrison agreed to put up $15,000 and the Ashleys for $24,000 cash purchased a ten-mile road from the Roscommon Lumber Company, the deal looked solid. Negotiations got hung up on the purchase of the Saginaw and Clare County branch from the Flint and Pere Marquette. There was still a lot of timber coming down the hills of Hatton and the Saginaw people weren't selling. The T, AA&NM did relocate the branch line connection to Harrison, at the connection point on the F&PM East of Farwell to Clare, to avoid building an interlocking plant at their junction.

In 1887 an act was passed by the legislature granting a charter to the village of Sherman, and the first village election was held on the 5th day of May 1887. One of the principal objects in securing the charter was to enable the village to issue bonds for the purpose of securing the Toledo, Ann Arbor & Northern Michigan Railroad, which was then being pushed from Harrietta on to Frankfort. The bonds were issued and delivered to the Railroad Company, but owing to a decision of the Supreme Court of the state just prior to that time it found difficulties in negotiating them, and they were returned to the village authorities. The result was that the proposed 'spur' was never built, although it has appeared on the county atlas for the past twelve years. The failure to get this railroad connection was another severe blow to Sherman, as it made possible the building up of another trading point, the village of Mesick, thus dividing the business which should have all gone to one town to have it grow and prosper.^¹⁰⁸^¹⁰⁹

On 1/25/1889 engine No. 12 was destroyed in a wreck at Clare, at 4:00 P.M. near the north side of the depots, engineer Waters.

2-15-1889 J. M. Ashley of the T. A. A. & N. M. railroad is in the city (Manistee). (Not noted whether junior or senior.)

5-10-1899 it is reported that the Frankfort & South Eastern railroad will now be built as rapidly as possible, so as to have it in running order as far as Bear Creek some time in August. Trains will run from the latter place into this city (Manistee) over the M. & N. E. This will open considerable more territory tributary to Manistee.^¹¹⁰

5-17-1889 two engines for the Frankfort & South Eastern railroad arrived here (Manistee) Wednesday. They will be taken to Frankfort today on a scow. Passenger and freight cars will be here next week. By August track will be laid to the Manistee & North Eastern road, when trains will be run from this city to Frankfort.^¹¹¹

6-7-1889 H. M. Smith of Frankfort has contract for building an addition to the Pt. Betsey life saving station. A new town called Harriette is growing up on the T. & A. road five miles from Sherman.^¹¹²

6-28-1889 Mr. Shafer of Cleon has given the T. & A. road two acres of land for depot buildings, at Cleon Center. This road has over two hundred teams at work on the grade in that neighborhood.^¹¹³

A man named Ed Tracy was struck and killed by a Toledo, Ann Arbor & Northern train, near Cadillac, Tuesday night. An empty whiskey bottle in his pocket told how it happens.^¹¹⁴

The Wexford County Pioneer gives the following picture of the bright future of the township of Cleon: The people of feel justly elated over their railroad prospects. The Douglas road is already running up to the south line of town; the T. & A. has commenced grading about the center of the town on their line running in a northwesterly direction; the Frankfort & Southeastern will pass through town when completed; and last but not least it is given out that the C. & W. M. road will strike the town on its western border. At any rate it is certain that two roads will traverse the town, one in a northwesterly and the other in northeasterly direction. The farmers who have hitherto had to draw their hay, grain and potatoes from twenty to forty miles will be apt to thoroughly appreciate this advent of a railroad which will bring market right to their door.^¹¹⁵

Conrad Sherman, a T. & A. railroad employee, at work on the bridge over the Manistee River near Sherman, was badly injured one day last week, by a fall from the top of the bridge. He fell a distance of about twenty-eight feet striking partially on an iron rod and partly on a stick of timber. One elbow was thrown out of joint and one of the bones of his arm fractured, otherwise his injuries consist only of bruises which through very bad are not thought to be dangerous.^¹¹⁶

The T. & A. A. and M. & N. E. railroad companies have purchased 160 acres of land at the junction of these roads in Cleon, and propose to plat a village at this point. (Copemish)^¹¹⁷

The steel rails on the T., A. A. & L. M. are laid to the Manistee River, and trains running to that point. It is thought that trains over this road will reach Manistee as early as October 1.^¹¹⁸

[Sherman and the T. & A. RR] - Wexford Township, Wexford County foolishly bonded the town for $2,500 to be paid the T. & A. A. R. R. Company if said company would run their road at or near section four of said Wexford Township. The railroad did not exactly fulfill the contract and now there is a vast amount of trouble, the township has ordered the bank in which the bonds are deposited for the railroad, not to let the railroad company have them. The people of Wexford Township are not all one on the subject, but are pretty evenly divided as to whether to pay or not. If, at a special town meeting which is to be called to decide the matter, the majorities are in opposition to paying the bonds, the town will probably stand back and let the courts decide the matter. It is to be hoped that people will learn that it is folly to pay corporations to build roads or factories for their (the corporations) own benefit.^¹¹⁹

Copemish – Is the name of the new town located at the junction of the Manistee & North Eastern and the Toledo, Ann Arbor & North Michigan railroads. This point will also be the junction of the Frankfort division of the former system. The name Copemish, we are told, means Beach City, a very doubtful assertion. The town is owned by Buckley & Douglas of Manistee and H. W. Ashley, general manager of the Toledo, Ann Arbor & North Michigan railroad, and they intend to boom the town for all it is worth. The papers are full of glowing accounts in which described as having a very fine location on level ground and surrounded by dense growth of hardwood.^¹²⁰

In December of 1889, passenger trains ran two round trips to Cadillac and East Saginaw.

The village of Harrietta was platted in April 1889, by the Ashleys, who were building the Toledo & Ann Arbor Railroad.

November 25, 1889 The Toledo, Ann Arbor & North Michigan Railroad (later the Ann Arbor) begins service between Toledo and Frankfort.

November 25, 1889 The Frankfort & Southeastern Railway (later AA) reaches Copemish MI.

1890 - Of the $10,000,000 new consolidated mortgage 5 per cent bonds, $5,040,000 are held to retire the outstanding divisional mortgages as they become due, or are acquired, from time to time, by the company. There have also been paid for out of the proceeds of these bonds; 54 miles of road built, and 80 miles of road which have been bought and which are tributary to the company’s main line. It is also intended to construct an additional miles of road. The company was authorized to sell $200,000 of bonds, the proceeds of which will be used for the purpose of building a dock and for steamers to ply on Lake Michigan. The remainder of the issue $1,200,000 are to be held in the treasury and can be issued only for new mileage construction, at the rate of $18,000 per mile.^¹²¹

In the Supreme Court of Michigan, Jan. 17, 1890, Field versus Ashley, it is shown that J. M. Ashley purchased engine(s) and personal property of the Roscommon Lumber Company for $30,000, with the last payment due Oct. 15, 1887. The personal property appeals to be mainly the right of way for the Roscommon Lumber Company.

The Toledo, Saginaw & Muskegon Railroad, filed articles of construction 1/25/1886, the line was to run from Muskegon to Saginaw, proposed length 140 miles, with capital stock of $2,800,000. The Toledo, Saginaw & Muskegon Railroad was organized in the interest of the Toledo, Ann Arbor & North Michigan railway. In 1988, the line was leased to the Grand Trunk, and then later sold to the Grand Trunk. Jim Ashley, Jr. and David Robinson, Jr. (president), William Baker and John Cummings making a profit on the construction but losing control of the road.

The decision to make Frankfort the Lake Michigan terminus of the road had apparently been reached some time earlier. In the Railroad Commissioner's report of 1888, Toledo, Ann Arbor & North Michigan the filed the intent of building to Frankfort from Cadillac, with a branch line to Manistee. The Toledo, Ann Arbor & Lake Michigan Railway Company was then formed and filed articles on 3/29/1888, proposed length of 60 miles. It was finished to Harriette in 1887, by 12/31/1888, had built 25 miles from Cadillac and to Copemish in 1890, and was incorporated into the Toledo, Ann Arbor & Michigan on January 10, 1890. Amendments to the charter of Toledo, Ann Arbor & North Michigan Railway Co., was filed with the Railroad Commissioner changing its route from Toledo, Ohio to Copemish, MI, on May 22, 1890.

In the annual report for 1885 President Ashley had told the stockholders of another new company, the Frankfort & Southeastern, organized in the port city of Frankfort, for the purpose of building inland to a junction with the rapidly advancing line of the Toledo, Ann Arbor & North Michigan from Toledo.

When it became apparent that the Frankfort & Southeastern company could not extend all the way inland to Cadillac, the Toledo, Ann Arbor & Lake Michigan, to bridge the gap from Copemish to the Frankfort & Southeastern, a 2.4 miles extension was built and leased to the Frankfort & Southeastern.

The Toledo, Ann Arbor & North Michigan, was a much discussed the 'Durand Express' with several items appearing in this small paper; "two corps of engineers are in the field from the T&AA, locating their line west from Cadillac", "about tens cars on T&AA detailed at Whitmore Lake, Monday", "the T&AA changes its time next Monday, and will run three trains daily each way, making connections on the morning and evening trains at Cadillac for Petoskey and north,” the construction of the T, S & Mack RR is progressing rapidly. The rails are laid on this end to within a couple of miles of Flushing, which place will doubtless be reached this week. On the north end the iron is also laid to the crossing of the Flint River, a distance of eleven miles from East Saginaw. Depots are being erected at Lennon, Flushing and East Saginaw.” "The T&AA recently paid Alex. McKercher, of Duffield, a judgment of $460.00 for forcible occupancy of some land.” and showed the following passenger timetable;

No. 2 northbound 9:30 AM No. 3 southbound 9:30 AM
No. 4 northbound 7:20 PM No. 5 southbound 4:36 PM
Central standard time

By Nov. 25, 1889, the Frankfort & Southeastern had extended its line from Frankfort to Breecher, with 22.50 miles of main line and a .25 miles branch to South Frankfort, 2.00 Miles of sidings, and a additional 2.20 miles of line was leased, from south end of main line at Breecher, (Breecher, located east side of the present Ann Arbor RR in Thompsonville), to .70 miles southwest of Thompsonville, from the junction of the Toledo, Ann Arbor and North Michigan. This line operated for three years from Frankfort through Thompsonville, to Copemish.

The Ashleys intended to take over the Frankfort & Southeastern is evidenced by the fact that they contracted for the construction of two car ferries as early as 1890. The Frankfort & Southeastern was leased and merged into the operation of the Toledo, Ann Arbor & North Michigan on May 14, 1892.^¹²² The Toledo, Ann Arbor & North Michigan started building a line on the south side of Betsie Lake (the F&SE had a short siding to South Frankfort at this time).

The Frankfort & Southeastern line had been built at very low cost, and required substantial rebuilding before heavy equipment could operate on it.^¹²³

In 1888, the railroad had reached the Manistee River Valley, and Ashley toyed briefly with the idea of terminating the line at Manistee. He negotiated for the purchase of Manistee & Northeastern Railroad or at least the use of their tracks into Manistee, at that time the Manistee & Northeastern RR, had reached a point three miles north of Kaleva, some 28 miles from Manistee. But Ashley couldn't get the deal he wanted and pushed on north - after threatening to run a separate line into Manistee. After Manistee & Northeastern RR build into Copemish, the Toledo, Ann Arbor & North Michigan RR run passenger service over the Manistee & Northeastern RR to Manistee, dates listed on timetables between 1890 and 5/14/1893.

On December 28, 1888, Ashley had announced plans to build from Cadillac to Springville, 20 miles distance, and then build from the Manistee River Junction to Manistee next year.

Construction was started on a line from Copemish to Henry, as part of the threat to build into Manistee. This line to Henry was finished in 1896, 3 miles in length, using second hand rail and then leased to the Arcadia & Betsey River RR, which allowed them to reach Copemish, on December 12, 1896.

During the 1888s, the Ashleys bought a piece of land and platted the present village of Harrietta, the name being a combination made from Harry Ashley and the name of his intended wife, Henrietta Burt.

Another feeder development was a line to tap the lumber and other resources of the Saginaw valley. This road, the Toledo, Saginaw & Mackinaw, was built by a group of wealthy Saginaw lumbermen, headed by Wellington R. Burt, who was Henry Ashley's father-in-law. The portion from Saginaw to the Ann Arbor junction at Durand was built for cash.^¹²⁴

In the fall of 1888, the Toledo, Saginaw and Mackinaw, was completed from Durand to East Saginaw, a distance of 39.2 miles. The portion from Saginaw to the Ann Arbor junction at Durand was built for cash, the only part of the Ashley system built without bonded indebtedness. This stretch was only a beginning, however. The line was intended to extend northward along the eastern coast of the Lower Peninsula through Alpena to Mackinaw. The Toledo, Ann Arbor & North Michigan operated this railroad while it was under construction, and negotiated for the control of this property, while continuing its daily operation. On Dec. 26, 1889, the Toledo, Saginaw & Mackinaw RR was reorganized as the Cincinnati, Saginaw & Mackinaw RR, and officially opened for business on Jan. 11, 1890.

In the fall of 1888, the Toledo, Saginaw and Mackinaw, was completed from Durand to East Saginaw, a distance of 39.2 miles. The Toledo, Ann Arbor & North Michigan operated this railroad while it was under construction, and was negotiating for the control of the property, while the Toledo, Ann Arbor & North Michigan continued it daily operation. On Dec. 26, 1889, the Toledo, Saginaw & Mackinaw RR was re-organized as the Cincinnati, Saginaw & Mackinaw RR, and officially opened for business on Jan. 11, 1890.

The lease of the Cincinnati, Saginaw and Mackinaw ended with the sale of the line on October 31, 1890, to the Cincinnati, Saginaw and Mackinaw Rail Road Company, which had incorporated in on Dec. 28, 1889, 350 miles in length, from the Michigan-Ohio state line to Mackinaw City. A branch line had been built from West Bay City to Oaatka Beach, 9.03 miles, and while under lease to the Toledo, Ann Arbor and North Michigan.

3/22/1889, the terminus of the extension northwest from Cadillac will be Glean Arbor in Leelanau County. Frankfort, Crystal Lake & Glen Arbor RR Company, articles filed March 20, 1890, 44 miles, Frankfort to Glean Arbor, capital stock $400,000.

5/9/1889, Active construction work will soon be commenced on the Chippewa Valley extension from Mt. pleasant to Manistee, on Lake Michigan, 117 miles. Of these 37 miles is completed. This is the narrow gauge Manistee & Luther, which is now being changed to standard gauge. It is intended to complete the entire road this year. An issued of $1,800,000 five per cent bonds has been authorized, of which $700,000 has been issued on the completed portion.

6/28/1889 - extension done to Sherman, line under contract to Weldon, contractors are Wallace & Dingman, Charles Warner and W. Pickard.

7/19/1889 - work commenced on extension from Mt. Pleasant to Big Rapids - proposed to continue this extension north to Manistee.

9/20/1889 - line to Manistee Jct. from Harriette - 41 miles, no further construction for year.

11/29/1889 - a 5% mortgage for $10,000,000 on the consolidated line of the company by Farmers Loan & Trust Company of New York to cover all bonds, equipment and road - for 50 years and to allow construction of docks at Toledo and terminals on Lake Michigan.

12/27/1889 - a survey is to begun in a few weeks from River Rouge, just west of Detroit to Ann Arbor.

2/1889 - A. J. Paisley - General Passenger & Ticket Agent, Will Bennett - General Freight Agent.

11/1889 - The headquarters for the Master of Transportation, Train dispatcher & Car Service Dept. moved from Toledo to Owosso

11/8/1889 - Harriette via Sherman - Weldon - to Manistee Junction in service, 40.5 miles, in service.

12/6/1889 - J. B. Conners appointed Superintend, at Owosso, after 12/15, Master of Transportation Office will be abolished.

1/31/1890 - The extension of the road known as the Toledo, Ann Arbor & Lake Michigan road was, at a recent meeting of the directors consolidated with the main line. The road is now running trains through from Toledo to Lake Michigan via Frankfort and Manistee from Copemish Junction.

3/21/1890 - A consolidated mortgage on the road will file for record shortly. It provides for the issue of $10,000,000 five per cent bonds to take up $5,040,000 outstanding divisional bonds as follows: T, AA & GT $1,260,000; T, AA & NM $2,120,000; T, AA & Mt Pl $400,000; T, AA & Cad $1,260,000; also to purchase the T, AA & LM. The executive committee of the company is authorized to issue and sell $200,000 of the bonds to pay for terminal properties to be acquired and to establish a line of steamers across Lake Michigan to operate in connection with the company's railroad. About $800,000 of the bonds is to be issued for new mileage as needed. The new bonds are to be exchanged for old bonds at par.

5/9/1890, The Company proposes to abandon the branch between Lelands and South Lyon 5.5 miles, as it has never paid operating expenses. The petition of the company for permission to abandon the line is opposed by the residents of South Lyon, as the company received a subscription of $50,000 for building the branch.

The Advocate complains that the Cleon farmers get goods shipped from Detroit on the Toledo & Ann Arbor road cheaper than they can cam get them on the Manistee & North Eastern from Manistee.^¹²⁵

Two hundred Men Stop Work on the Railroad and Want more Pay. About 200 men working on the Canfield railroad in the south part of the city struck and quit work Monday because of low wages.

This road paid $1.00 per day in the early spring, then $1.10 later, and at the time of the strike they were paying $1.20 per day. The men wanted $1.50 – the same as is paid by the Manistee & North Eastern, Chicago & West Michigan, the Toledo & Ann Arbor, and in fact by about every other railroad t5hat is now building in the state. The foremen told the men he could get 500 men in this city for $1.00 per day, and they told him to get them. About 20 teams left also at the time.

On Tuesday the men began to coax others on the line to stop work and the railroad company sent the sheriff to disperse them. The sheriff found them along the railroad line perfectly quiet and peaceable, and after cautioning them not to resort to force, he left.

On Wednesday a delegation from the strikers had an interview with Mr. Canfield and he told them that Mr. Salling was managing the work on the road, and was away, but that when he got back, doubtless some satisfactory arrangement would be made. Since then a number of the men have gone away to the other roads that pay $1.50, and many of the teams went across the lake, where team work is said to be in great demand. They were only paying $3.00 per day for man and team hauling earth. The usual price is about $4.00.^¹²⁶

Oct. 3, 1890 To the general managers of the Frankfort & South Eastern Railroad and the Chicago & West Michigan Railway. Special order approving the interlocking and derailing switch at the crossing of the two roads at Thompsonville.^¹²⁷

Oct. 10, 1890, To the Toledo, Ann Arbor and North Michigan Railway, and the Detroit, Lansing & Northern Railroad Companies. Special order modifying the order of August 6, 1888, relative to the approval of the interlocking device at Howell Junction.^¹²⁸

Dec. 10, 1890, To H. W. Ashley, General Manager of the Toledo, Ann Arbor & North Michigan Railway. Special order to make general repairs of the bridge over Huron River, and to decrease speed of trains over the same until such repairs are made.^¹²⁹

8/2/1890 a man named Miller was hurt on the railroad at Manistee crossing, near Copemish, a day or two since by pulling rail. Thursday he suddenly died. The sheriff and coroner went up there and brought the remains here. A coroner’s jury said he died of his injuries.^¹³⁰

11/14/1890 - C. Stein, has been appointed Roadmaster between Owosso and Copemish, headquarters at Mt. Pleasant.

In 1890, a new passenger station was opened in the city of Ann Arbor, at the cost of $4000.00. In 1887, property belonging to Luther James was appraised at $340.00 and he was allowed that amount for the depot site. In 1888, the railroad allowed $3500.00 for construction of a depot, and the City of Ann Arbor then opened Second Street to allow traffic from the business section to reach the depot.

Additional branch lines in service were; Alma-main line to river 1.25 miles, main line to Ithaca 1.75 miles - 276 miles in service, (Taymouth) added station, 77 stations listed

Commencing October 1, 1890 all remittances to First National Bank, Toledo, Ohio.

Jan. 28, 1891, To the Toledo, Ann Arbor & North Michigan Railway, Grand Rapids & Indiana Railroad, and the Cadillac and Northeastern Railroad Companies. Special order, approving the safety gates at the crossing of the Gimlet and Mill tracks, so-called, in the city of Cadillac.^¹³¹

June 24, 1891, To the general manager of the Toledo, Ann Arbor & North Michigan Railway and the Cadillac & Northeastern Railroad. Special order to station and maintain a flagman at the crossing of North Street in the city of Cadillac.^¹³²

August 14, 1891, To H. W. Ashley, general manager Toledo, Ann Arbor & North Michigan Railway. Special order to station and maintain a flagman at the crossing of Harris Street, in the city of Cadillac, between the hours of 7 AM and 9 PM from May 1^st until the close of navigation on Clam Lake.^¹³³

5/8/1891 - General Offices located Second floor, Pythian temple, corner Jefferson & Ontario Streets, Toledo, Ohio.

During 1891, a new bridge over the Huron River and the railroad grade was raised in the City of Ann Arbor.

The Toledo, Walhonding & Ohio RR in 1891, operated a large yard area next to the Maumee River, near the end of the original main line.

The T, AA&NM shops located at Troy and Michigan Streets, Northwest corner of Manhattan Junction 1891 through 1913.

In 1891, the Toledo, Marion & Mackinaw Railway Company was formed, to run from Marion, MI to the Straits of Mackinaw, length of 141 miles, with capital stock of $2,800,000, articles were filed, Feb 17, 1891. This line was promoted very strongly by the Toledo, Ann Arbor and North Michigan directors, which would have gave them a major connection at Marion. This proposed railroad line would have crossed through the major logging projects of the time; this line was later known as the Detroit, Charlevoix & Mackinaw RR. This line was to run from the straits south through Petoskey, and Charlevoix to the main line of the Ann Arbor at Marion.^¹³⁴

The first board of directors is as follows: H. H. Ashley, E. A. Todd, Jr., T. W. Whitney, I. A. Fancher, F. S. Chandler, F. Gossman. They have elected the following officers: I. A. Fancher, President; H. H. Ashley, Vice-President and General Manager; F. S. Chandler, Secretary and Treasurer. The headquarters of the company will be Owosso. These are officers of the Toledo, Ann Arbor & North Michigan.

The Chief Engineer reports the completion of the locating survey on about 30 miles of the Mackinaw extension from Marion, on the main line, north to the Manistee River. H. E. Riggs, Chief Engineer, is making the location. The preliminary surveys have been completed to Charlevoix and Mackinaw.

The company will commence work on the construction of its new extension from Marion, north to Mackinaw, within 10 days. It will take a couple of years to complete the work.

A preliminary survey has been made for the proposed extension from Marion, a town on the main line, 18 miles south of Cadillac, northerly to Charlevoix, on Lake Michigan, in the northern part of the state. This survey is now being corrected and the line on a part of the route. The extension will be 90 miles long. The company has not yet decided to build any part of the line this year, and even if work is begun no effort will be made to complete much more than half the distance.

The extension to South Lyons didn't prove as profitable as they anticipated so early one Sunday morning, on March 29, 1891, the Toledo, Ann Arbor & North Michigan Railway Company brought a large crew of men to South Lyons and they tore up the tracks. This was done on Sunday, as on that day it would be impossible to get an injunction to halt the operation. Remands of the old railroad bed may be seen on the east side of Pontiac Trail south of town. The Water street line in Toledo to the Wabash Railroad was largely in place in the late’s, the rebuilding of Toledo downtown area has removed almost all of the line.

There was a riot on Saturday night, March 28, 1891, the likes of which has never been seen before or since. For ten years, up to that date, South Lyon had been the northern terminus of the Toledo, Ann Arbor & North Michigan RR.

Suddenly word got out that the Toledo, Ann Arbor & North Michigan was planning to abandon the line from Leland, near Pontiac Trail and E. Territorial Rd., to South Lyon. Practically every able-bodied citizen of the town gathered that Saturday night at "the diamond," one block from the center of town, where an interlacing of Grand Trunk, Pere Marquette and Ann Arbor tracks^¹³⁵

This was the last consolidation of rail lines northwestward and the name of the railroad at that time was the Toledo, Ann Arbor and North Michigan.

Plans called for ferry slips at South Frankfort, (now Elberta) and Keewaunee, Wisconsin, and the work commenced in April of 1892. The right of Way for a connection line from what is presently known as Junction Switch on the railroad towards the present Boat Docks in Elberta, was granted by the Crane lumber Company of South Frankfort, across the swamp and across Waterfront lots fronting on Frankfort Avenue as shown on the record plat of Village of Frankfort City, Benzie county, (which is Elberta's Main Street).

The deed for the property stated, "Provided said Railway Company shall within 90 days construct and afterwards operate and maintain a standard gauge steam railway across said lands and through said Village of Frankfort city to the Frankfort Furnace company's Docks and shall build and construct passenger and freight depots in said village and shall run regular through passenger and freight trains daily from Toledo, Ohio to Frankfort city, Michigan, and shall make Frankfort City the terminus of said railway within one year from date, (June 18, 1892).

Provided further that said Railway Company shall on demand build a switch from the main line of said railway at a point most convenient to the Crane Mfg. Company, planing mill, now in the course of erection in said Village of Frankfort City. The Crane Lumber Company is to secure right of way.

Provided further that said Crane Lumber Company reserves the right to cross said lands on water lots mentioned above at such points as it may hereafter designate.

Provided further that in event said Railway Company shall fail to perform any of the conditions as above stated to be formed on their part or shall fail to make Frankfort City the terminus of said Railway and run through daily passenger and freight trains from Toledo, Ohio, to Frankfort City, Michigan, and continuously operate said railroad as above stipulated, then these presents shall be null and void and the rights granted herein to revert to the grantor herein and its assigns.

Together with all the privileges and appurtenances to the same belonging, to have and to hold the same to the grantee its successors and assigns forever; hereby contenting that the title conveyed is clear, free and unencumbered by any act of the grant or herein.

In witness whereof the Crane Lumber Company has by its President and Secretary affixed their hands and the corporate seal of said Crane Lumber Company this 18th day of June A.D. 1892.

Chandler, ‘The Crane Lumber Company’ by L. W. Crane, President and M. Crane, Secretary and Treasurer.^¹³⁶

The Railroad Company had acquired the necessary right of way and all the lands of the Frankfort Furnace Company from Isobel Blacklock Anderson, widow of the Furnace Company owner, and several acres of land for the ferry slip. They unable to acquire 1000 to 1200 feet of land between the slip and Furnace Company property owned by Edmund G. Chambers who had been Assistant Secretary of War under Secretary Stanton in the Lincoln Administration. This is the same Mr. Chambers who had used his connections and knowledge to procure the original appropriations for the harbor construction in the 1860's. His property formed a bluff some 20 feet higher than the general level, fronted on Lake Betsie, and was occupied by 2 good sized two story houses which had been built and used by the Furnace Company Officials during its operation. Mr. Chambers did not want a railroad in front of his summer home. He would not give or sell any part of the property. The Railroad builders had been confronted with like obstacles a number of times in their progress through Michigan and were well versed in methods to be used in like circumstances. They quietly went forward with the construction of the ferry slip, but were forced to boat all the material by water around Chamber’s land. Chambers was a Lawyer of great ability and a fighter who did not propose to give up his land without a fight and served an injunction on the railroad to prevent them from crossing. He knew, however, that they would have to cross to get to the slip and prepared in advance for their move. He enlisted some of the men of the area to be ready on short notice and they armed themselves to prevent the crossing while he kept a sharp eye on their construction progress. In the meantime the Railroad Company laid their tracks to the edge of his property, constructed the tracks for switching purposes, converted the stone building of the old Iron Furnace buildings into a roundhouse and finished the ferry slip. They had a crew of about 200 men and a steam shovel, and held them at Copemish until ready to move in. Railroad Officials in the meantime went to the area court in Cadillac, Michigan posted sufficient surety and gained an injunction against interference from Mr. Chambers. The following day, they moved in early with the steam shovel and their 200 men, and outnumbered Chamber's Army. When the papers were served on him, he looked them over, decided he was outsmarted, and proceeded to put on a display of profanity second to none. It was said the little switch engine always seemed to hurry a little faster when it went across Chamber’s lands for many years thereafter, as if to avoid the man's wrath. Mr. Chambers had a very difficult time reaching an agreement with the railroad, later received an award of $10,000.00 from the courts after some four or five years in court.

Land for the new car ferry docks at Kewaunee was acquired from George Grimmer. For the deed executed May 2, 1892, Grimmer received sixty shares of common and thirty preferred of Kewanuee, Green Bay & Western stock.

Kewaunee yard construction started in August, 1892, with piling driving for the ferry slips following the plans drawn by Ann Arbor's Assistant Chief Engineer, Mr. Augustus Torrey.

An agreement was forged between Kewaunee, Green Bay & Western, Green Bay, Winona & St. Paul, Toledo, Ann Arbor & North Michigan Railway and DL&W on December 19, 1891. It called for establishing of a permanent through routing from the Northwest to the Atlantic Seaboard via Kewaunee. It was to run between all points east of Manistee and Frankfort, Michigan and St. Paul - Minneapolis, Minnesota Transfer, La Crosse and Winona on the western end. The Toledo, Ann Arbor & North Michigan, jointly with K, GB & W and DL&W, agreed to supply the suitable steamers, guaranteeing daily service, weather permitting, between Kewaunee, Frankfort, and Manistee. The Green Bay roads would be responsible for storage and handling at Kewaunee and control of territory between Kewaunee and points west of the lake. Choice of a lake line was left open as a traffic option for Kewaunee, Green Bay & Western. Line east would make no higher rates to Kewaunee than to Milwaukee, Grand Haven, and Ludington, the competing routes. Lines west of Kewaunee would have rates no higher than from Milwaukee west, to acquire a fair proportion of westbound traffic from eastern roads.

The agreement forged a new system and introduced a new partner in Michigan: The Toledo, Ann Arbor & North Michigan Railway. There was press comment about the possibilities of the D&LW route using a line from Manistee to a connection with the Ann Arbor. The Frankfort & Southeastern Railway was completed to Cadillac in 1885 and, at the moment of Vanderbilt truth, became part of the new route. The sale was completed on January 8, 1892.^¹³⁷

The arrangements between TOLEDO, ANN ARBOR AND NORTH MICHIGAN and Kewanuee, Green Bay & Western were revised in the spring of 1892 as Osceola's serviced called for improvement. Seth Champion of Kewanuee, Green Bay & Western hired the Steamer City of Marquette to operate from May 1, 1892 to April 27, 1894. The two railroad companies "will jointly assume all marine and lake risks on hull and machinery of said steamer and cargo from the furies of the sea." Rate and divisions would remain the same with Grand Trunk Railway and DL&W carrying transfers TOLEDO, ANN ARBOR AND NORTH MICHIGAN. Kewanuee, Green Bay & Western and TOLEDO, ANN ARBOR AND NORTH MICHIGAN would split the costs of operation of the City of Marquette. In a letter sent to Manager Champion, Joseph Walker, Jr. stated that TOLEDO, ANN ARBOR AND NORTH MICHIGAN Manager J. M. Ashley had agreed to turn over the steamer's operation to Champion. To allow the three cents per hundred weights, "delivered to the rail of the boat, the boat to bear expense of handling inside of the rail out of their earnings." Evidently, Osceola's adventures were burdensome to the leasing companies. In the mid 1890's losses were substantial on the break-bulk steamers, both vessels costing $21,302.65.

The news of the Toledo, Ann Arbor & North Michigan Railway car ferries broke in January 1892 while Osceola was struggling to keep schedule on Lake Michigan. Kewanuee, Green Bay & Western sidings were filling up with back-logged flour cars from the Omaha Road transfers and by March 5^th a sturgeon Bay newspaper observed that a craft longer than Brunel's Great Eastern would be required to transport forty cars, the ferry's supposed capacity. Exaggeration of the coming ferries' size only fed the fires of marine gossip. On June 16^th a Green Bay, Winona & St. Paul rate division agreement was made with TOLEDO, ANN ARBOR AND NORTH MICHIGAN which stated that "the Ann Arbor Company is now building boats for the ferrying of car, with provision made for rate division on mileage." Soon the plans for the new vessels would be published in The Railroad Gazette, furnished by its builder, Craig Ship building Co., of Toledo. The 260-foot boats would carry 24 cars and price tag for each vessel was $250,000. The first was to be launched about September 15^th and the second six weeks later.

With the anticipated ferry connection, Ashley of Ann Arbor and Joseph Walker visited the proper authority in Washington to promote harbor improvements on behalf of the coming innovation. During the spring months, the pair went to Cape Charles, Virginia, to examine its ferry system in operation. Returning to Toledo, they inspected the construction at Craig's. They were certain that their system would save three day's transit time. In June, Samuel Sloans's General Manager B. A. Hegemann rode with A. Fell, Joseph Walker, Jr., James Ashley and Seth Champion on the steamer, crossing from Frankfort to a series of meetings along the busy, bullish route to the Mississippi.^¹³⁸

Plans called for ferry slips at South Frankfort, (now Elberta) and Kewaunee, Wisconsin, and the work commenced in April of 1892. The right of for a connection line from what is presently known as Junction Switch on the railroad towards the present Boat Docks in Elberta was granted by the Crane Lumber Company of South Frankfort. Crossing the swamp and across waterfront lots fronting on Frankfort Avenue as shown on the record plat of Village of Frankfort City, Benzie County, (which is Elberta's Main Street).

Toledo, June 29, 1892, a gigantic railway scheme is announced by which the Delaware, Lackawanna and Western will control a large share of northwestern traffic. About two years ago the Lackawanna secured the Green Bay Winona road, and several small roads south of Winona, Minn. This summer it is said a line will be built from Winona to St. Paul and Minneapolis, thus making a direct line from these cities to Green Bay.

The Toledo, Ann Arbor and North Michigan Railway will have a line to Kewaunee in full operation as soon as the line of ferryboats has been constructed. The Toledo, Ann Arbor and North Michigan and the Lackawanna with the line from Kewaunee to Green Bay have between St. Paul and Toledo the shortest possible route. After reaching Toledo the companies can enter into traffic arrangements with several lines to haul to Buffalo. The Lackawanna Company owns some of the most powerful freight carries on the lake, and could establish a line of steamers between Toledo and Buffalo second to none on the chain.

The time had now come for the testing of Ashley's contention that freight cars could be ferried across the open sea. Investors, Railroad men, and freight shippers all expressed great skepticism. It was predicted that the ferries, with their load above the water line, would roll over in a heavy sea. Mr. Ashley had procured the services Frank Kirby, a noted boat designer in Detroit and had him design the ships. The Craig Shipyards in Toledo, Ohio agreed to build the was designed to be converted into a passenger and package freighter if the transporting of the railroad freight cars did no work out. The keel was laid for the Ann Arbor No. 1 with an appropriate celebration. The Ann Arbor No. 1 was launched in Toledo on September 29, 1892. It cost $260,000 to build the car ferry. The vessel is the first of two build, and is 267 feet long on deck, 52 feet beam and 18 feet molded depth, drawing 12 feet of water, with a displacement of 2,550 tons. She has twin screws in the stern and a single screw in the bow. The vessel can carry 22 loaded freight cars. Ann Arbor car ferry No. 1 left Toledo on November 10 and arrived at her berth in the west slip in South Frankfort on November 16, 1892. The ferry transport service is from Frankfort, Mich., to Kewanee, Mich., 60 miles.

Toledo, June 29, 1892, a gigantic railway scheme is announced by which the Delaware, Lackawanna and Western will control a large share of northwestern traffic. About two years ago the Lackawanna secured the Green Bay & Winona Road, and several small roads south of Winnona, Minn. This summer it is said a line will be built from Winona to St. Paul and Minneapolis, thus making a direct line from these cities to Green Bay.

The Toledo, Ann Arbor & North Michigan, which has for some time been perfecting its arrangements for a through freight line from the West to the East, has now building two large steamers for Lake Michigan, described below. This freight line is to be kept running through summer and winter. Its main western terminus is at Winona, Minn., the end of the Green Bay, Winona & St. Paul railroad, this company and the Toledo, Ann Arbor & North Michigan being the principal members. The eastern connections are the Grand Trunk and the Delaware, Lackawanna & Western, with which the western lines have, traffic contracts. The Green Bay, Winonna & St. Paul has a connection at Merrilian, Wis., where it can receive St. Paul and Minneapolis traffic from the Chicago, St. Paul, Minneapolis & Omaha. The distance thence to Green Bay is 148 miles. Thence the route is over Kewaunee, Green Bay & Western, a leased line, to Kewaunee, 34 miles. From here freight is taken across Lake Michigan to Frankfort, 60 miles, and the Toledo, Ann Arbor & North Michigan carries it across Michigan to Durand, whence it is taken eastward by the Grand Trunk and the Delaware, Lackawanna & Western. Companies in very close relations with each other operate this route, and for traffic purposes it is practically one line.

For the greater economy of operating the route, the Toledo, Ann Arbor & North Michigan is having built at the yards of the Craig Ship Building Co. at Toledo Two transfer boats capable of carrying 24 freight cars each. One of these will launched by Sept. 15, and will go into service about Oct. 1; the other will follow some six weeks later. The first, the "Ann Arbor," is illustrated in the engravings. The car transport service of 60 miles at this point is attended with all the difficulties found in taking cars across the mouth of the Chesapeake Bay and some difficulties peculiar to the situation. There are deep water and heavy seas, and in winter heavy running ice; consequently it was necessary to make the transfer boat with high and strong bows. The cars are loaded at the stern and the bow is decked for a distance of 50 ft. back and rises 25 ft. above the load line. The vessel is 267-ft. long, 32-ft. beam and 18 ft. molded depth. It is calculated to draw 12 ft. of water and to have a displacement of 2,550 tons at that draft.

The vessel is built of oak with a solid frame up to 2 ft. above the loading line and will have a belt of iron 6-ft. wide to protect the planking from the ice. Extra deck beams are placed at the load line to prevent crushing in if the vessel is nipped in the heavy ice. She is strengthened longitudinally by a steel cord with diagonal steel ties every 4-ft running to the keel. The keelson is strengthened with a steel plate 2-ft. wide and three-quarters of an inch thick. The vessel is so modeled as to ride over and crush down ice rather than cut it thought.

There are twin screws in the stern and a single screw in the bow, which are worked by three horizontal compound condensing engines of 20 and 40 in. diameter and 36 in. stroke. There are three boilers 10 ft in diameter and 14 ft. long calculated for 125 lbs. of steam pressure. The vessel will be equipped with the latest appliances such as steam steering, steam windlasses, electric lighting and an electric searchlight to insure safety in night navigation.

The cars will be secured by a method different from any heretofore practiced. There are four tracks, and there will be two posts on each side of each car between, which posts keys, as shown in the cross section, will wedge the cars. These posts are connected longitudinally by heavy stringer, and diagonal tie rods will be put in place between each two cars. These tie rods will be provided with turnbuckles to properly adjust their length. By this arrangement any damage at any part of the structure will be largely localized. The car will held to the deck by four chains attached to the trucks, each with a turnbuckle. These attachments are also shown in the cross section.

The Toledo, Ann Arbor and North Michigan Railway will have a line to Kewaunee in full operation as soon as the line of ferryboats has been constructed. The Toledo, Ann Arbor & North Michigan and the Lackawanna with the line from Kenaunee to Green Bay have between St. Paul and Toledo the shortest possible route. After reaching Toledo the companies can enter into traffic arrangements with several lines to haul to Buffalo. The Lackawanna Company owns some of the most powerful freight carriers on the lake, and could establish a line of steamers between Toledo and Buffalo second to none on the chain.^¹⁴⁰

September 24, 1892 Car ferry service begins from Elberta MI to Kewaunee WI. It is the first railroad ferry to cross open water. (Some sources say November 27)

The D. L. & W. Railroad agreed to route shipments from their line over the ferry route but were slow materializing in any quantity. Ashley put pressure on a company, which supplied coal for the railroad and got 4 carloads of coal for the first trip. At 8 A. M. November 24, 1892, the Ann Arbor No. 1, with the Ashley family aboard, left the South Frankfort slip destined for Keewaunee, Wisconsin. The weather was foggy and the captain and crew unfamiliar with the Wisconsin shore line and the navigation instruments of the new ship. Ann Arbor No. 1 went aground north of Keewaunee and was not released until November 26, and continued to Keewaunee. Being there was no damage to the ship; Ann Arbor No. 1 took on 22 carloads of flour from the Pillsbury Mills in Minneapolis, Minnesota, which was destined for England.

The second crossing proved less majestic. Steaming westward in a fog, her officers somewhat unfamiliar with the new route, the 1128-gross-ton leviathan drove full force into a gravel reef two miles north of Ahnapee. Up to the instant of collision with the, No. 1 hand logged four hours and fifty minutes for sixty miles, an otherwise commendable achievement. The ferry was stuck fast 300 feet from shore and was levered about 28 inches above her normal depth marks. Captain Kelley ordered her scuttled to prevent waves pounding the hull against the reef and signal for tugs. The Sturgeon Bay canal lifesaving station rescued the crew who set up camp ashore to direct wrecking operations. Shortly after, the Leathem & Smith wrecking tug fleet was dispatched from Sturgeon Bay, including Favorite of Sheboygan, stood off and put lines aboard No. 1. Thousands of horsepower moved the ferry only three feet. The barge Mary Mills finally came alongside and lightered off six carloads. Then, in an unforgettable display of steam-era tuggery, the eight shepherds of cold, northern waters dragged the car ferry off the bar. The tug Seagull, billed as a salt-water rig of great power, parted a 17-inch hawser in the ordeal.

Being there was no damage to the ship; Ann Arbor No. 1 was released to service, seven days after the first trip. While in Kewanuee alterations were made to fit two additional cars on apron end.

The Ann Arbor carferry No. 2 was launched in Toledo, Ohio, and departed on December 24, 1892. Having experienced damage to hull steel plate, fighting Lake St. Clair 5 inch ice, she laid into Port Huron for repairs. After taking a week to make the trip from Toledo to Frankfort, she went into operation as soon as she arrived at South Frankfort. Ann Arbor No. 2 arrived in Kewaunee on January 4, 1893, with eight loads, loaded with 22 cars of flour and departed.

1893, the General offices are located in the Pythian Castle building located on the southwest corner of Jefferson and Ontario streets, in Toledo, with the depot on the foot of Chestnut Street.

Feb. 1, 1893, one of the new eight drive wheel engines of the T. & A. A. was thrown in the ditch on Sunday near Cadillac. The engineer, Mr. Lovett, of this city, was badly scalded. The engine rolled completely over and is greatly damaged.

Feb 1, 1893, the T. A. A. & N. M. proposes to calm the angry waves outside the piers near Frankfort, and thus pass the boats to the harbor with ease and safety. Underground pipes will be laid and extended into the lake about 1000 feet. An oil tank will be placed on one of the piers and jets of oil will be sent out into the lake. This plan has been recommended by Lieut. Cordon of the U.S. Navy. The scheme will be in operation within a few weeks.

Engine 40, one of the new compound engines of the T. & A. A., blew up on Saturday morning near Cadillac, killing the fireman, Patrick O'Neil, and injuring engineer Miner, both of this city. The dropping down of the crown sheet caused the explosion of the boiler. So violent was the explosion the Mr. O'Neil was thrown clear over the tender striking the freight cars with great force. Mr. O'Neil was young man about 25 years old. His remains were taken to Canada, his former home, for burial.

Trouble between the T & AA Railway Company and its locomotive engineers has been brewing since last Thursday. The engineers through their organization ask for an increase in wages. The company refuses to grant their requests. Many companies refuse to grant their requests. Many conflicting reports have been circulated. It was reported and published in Detroit and Toledo papers that Supt. Conners had issued a bulletin requiring all engineers to withdraw from the Brotherhood. Mr. Conners yesterday said the report was absolutely false, as he had issued no such bulletin.

The Company has a large number of applications for work from competent engineers who are out of employment and several new men have been given work. The Brotherhood's Committee has been in Toledo conferring with General Manager Ashley by no agreement has yet been reached.

The PRESS endeavored but was not able, to secure for publication a copy of the communication from the Brotherhood to Mr. Ashley. Mr. Ashley's reply was as follows:

I have examined the request made through you for changes in compensation of and regulations governing the locomotive engineers and firemen employed by this company.

The scale suggested in your memorandum is equivalent to an increase of about 15 per cent. In the amount paid to the engineer and firemen or about $13,000 per annum. This would not be possible under the present condition of the Company's property.

The men in locomotive service are hauling a less number of cars per train and these cars are earning the Company a less rate per train and per ton than ever before since the road began business. Financial condition of the property precludes the possibility of meeting the wishes of those you represent. The result of the work your are performing does not justify the demand for higher pay.

The regulations, which you ask, are now and always have been operative. Exceptions have been numerous, growing out of exigencies of the Company's business and condition. We will continue the same methods in these respects as heretofore and will be ready to take up individual cases of difference at any time the aggrieved party may desire. It is not to the interest of a small company like this one to make such ironclad rules as may work to advantage on a large system. I decline to do so.

This petition is in effect a demand that I discharge all engineers and firemen who are not members of the brotherhoods.

During the past three months this company has lost some $9000.00 by accident, attributable to ignorance and carelessness of engineers. Three boilers have been burned. The Company has no recourse even for suck criminal ignorance - these men were, I am told all members of your orders.

Not with standing this experience you ask that in the future the locomotive service of this Company be confined entirely to members of your brotherhood.

You personally know that this would be an act of perilous ingratitude to some of the Company's oldest, most faithful and most efficient men.

It is your proposition, was to provide this help at a rate 15 per cent lower instead of 15 per cent higher than we are now paying, it would be equally distasteful to me and unworthy of an organization of intelligent workmen.

It is a financial impossibility for me to comply with requests for larger expenditure for train service at present. On reflection, your better judgement will show you that I cannot be unfaithful to men who have done hard duty for the Company at times and under circumstances where few, if any, of your number would be accepted the employment they undertook and performed.

The Vice President of the Road, Unable to meet sudden calls for money, loses all of his holding – a costly year in Wall Street – The Toledo, Ann Arbor and north Michigan Railroad Boom

The misfortune which has so suddenly overwhelmed J. M. Ashley, Jr., the first vice president of the Toledo, Ann Arbor and North Michigan Railroad, forms a peculiar, if not pathetic, chapter of Wall Street history. An abrupt call for the repayment of heavy loans, a tumble of twenty points in the stock of his road, and Mr. Ashley was wiped out financially.

The situation is thus summed up in Mr. Ashley’s own language to a reporter yesterday: “At noon yesterday I did not dream of such a change. Now I have not $50.”

Just about a year ago J. M. Ashley, Jr., came to New York as the representative of the Toledo, Ann Arbor and North Michigan Railroad, of which his father is President. The main line of that road runs from Toledo, Ohio, to Beecher, Mich., a distance of 274 miles. A leased line, about two and half miles long, extends the road to Frankfort, on the shores of Lake Michigan, and there is a railroad ferry from Frankfort to Kewaunee, Wis., operated by the railroad company.

The Messrs. Ashley, father and son, thought that they saw a great deal of money in the development of this property. Together they took 25,000 shares out of a total of 62,000 shares of stock and obtained control of the road. Mr. Ashley, Jr. says that he put in about $200,000 of his own money. Extensive improvements were planned and negotiations for important connections were opened. The 25,000 shares were put up collateral for some large loans. The Ashley management soon made itself felt because of its energy and push. New piers and trestles were built, new rolling stock purchased and new ferryboats were built to convey the cars across Lake Michigan. These new boats were the largest and finest of their kind.

In the imagination of the Ashleys there grew up a great and prosperous freight route to the Northwest. The lake ferry between Frankfort and Kewaunee made it the shortest of all. The only things needed were connections, and overtures were made to Samuel Sloan for close traffic agreements with the Green Bay, Winona and St. Paul Railway and the Lackawanna Road. Mr. Sloan is President of both lines and reputed to be the chief owner of the Green Bay Road. A few months ago it was whispered about Wall Street that contracts were about to be signed between the Toledo, Ann Arbor and North Michigan Company and Mr. Sloan’s two roads. Such whispering helped the stock of the Ann Arbor Road to rise. Mr. Sloan said yesterday that no such contracts ever existed or were contemplated by him.

In the meantime Vice President Ashley, having an office in this city, devoted himself assiduously, it is said, and he kept a sharp eye on the stock market and occasionally took a “flier.”

For a long while the price of the stock of the Toledo, Ann Arbor and North Michigan Railroad was quoted in Wall Street at about 39. On Monday last it opened at 38 ¼, and within an hour on the afternoon of that day it fell to 26 ½. Yesterday it dropped down 18 ¼. Various explanations were forthcoming for this remarkably agile performance of this stock that for many months had been quiet and steady. There were sensational rumors of financial irregularities in the management of the company’s affairs, and there were reports that Mr. Ashley, Jr., had gotten into various speculative entanglements, including the selling of a large number of “puts” on the stock of his road.

Mr. Ashley admitted yesterday afternoon that he had been tripped up by unexpected calls for large loans. He could not meet his obligations, and certain securities which he had been carrying on margins had to go by the board. The called loans were held by three large Wall Street houses, but Mr. Ashley declined to name them. He asserted emphatically that the calamity was purely a personal one. The railroad company, he said, was not involved. No loans of the company had been called. When asked whether any bonds of the company had been hypothecated, Mr. Ashley replied that some of them might have been sold to sustain the market. He declared that he was completely cleaned out financially, that he would have to give notes for what he owned, and begin all over again.

The following carefully considered statement was furnished for publication last evening by Vice-President Ashley’s friends, as coming from Mr. Ashley:

“The present depression in the stock is due to the sale of a large block of stock which I personally held on a margin. When the unexpected decline began I was caught in another transaction and had no money with which to increase my margin on a minute’s notice. My stock was thrown on the market, and caused the present low price. The railroad company itself has met with no loss in the fall in price, as it held no stock. The road is in good running order, and has a largely increased earning capacity over last year. There is no reason in the affairs of the road why such a decline should take place. On the contrary a traffic alliance has just been completed with the Lake Shore and the Chicago and Northwestern Roads which furnishes all the business the road can handle. The Directors meet on Friday to order the usual payment of interest on the bonds.”

While Mr. Ashley did not care to give any figures, current rumor in Wall Street put the amount of his losses at about half a million dollars. The aggregate amount of the loans called was believed to be about $400,000. Whether the railroad company or Mr. Ashley senior will be seriously affected by this crash remains to be seem.^¹⁴¹

Toledo, Ohio, April 30. The most important development in all the troubles through which the Toledo, Ann Arbor and North Michigan Railroad has passed came to light at a late hour Saturday night in this city. As is generally known, Vice President James M. Ashley, Jr., was compelled to maintain under certain conditions the rate of 38 on the company’s stock in the New York markets. The bears got after the road and the stock was greatly depressed. Under the stipulations by which Mr. Ashley was enabled to retain the value he was called upon from day to day by his brokers for more cash, until his resources, both available and borrowed, were practically exhausted.

It now develops that those who were ostensibly holding Ann Arbor stock as collateral for actual cash advanced were in fact really securing it in the interest of the Delaware, Lackawanna and Western Company, who have heretofore used the Wheeling and Lake Erie Road as traffic entrance to Toledo and the West in general. A meeting was held here Saturday which was generally supposed to be for the purpose of easing the situation and enabling the Ashleys to so adjust their finances as to have Receiver Burt relieved from control of the road and throw it back into their hands. The meeting was not held for that purpose. The Ashleys, it is now generally understood, are to be unceremoniously thrown overboard and the road made a part of the Lackawanna system.

They have been figuring upon this deal for a long time. Vice President Walker of the Green Bay Road and others came to Toledo in the guise of creditors, but in reality to put the finishing touches on the gigantic deal by which the Lackawanna system is to be most advantageously extended.

Mr. Walker when seen positively refused to say a word either to affirm or deny the rumors regarding the deal. He is a very conservative man, and when asked point blank if the Lackawanna would at once proceed to pay the outstanding indebtedness of the road and take action to relieve Receiver Burt, he simply declined to answer. It is learned from what is believed to be a thoroughly trustworthy source that such will be almost immediate conclusion, and that President Ashley and his son who is the Vice President of the road, will quit very heavy losers. In fact, if the deal goes through as predicted, it is a practical conclusion that Gov. Ashley will suffer equally with his son, Vice President J. M. Ashley, Jr. It is asserted that it will not involve to any alarming extent the resources of the other son, General Manager H. W. Ashley.

Particulars are extremely meager, owning to the persistence with the Eastern parties as well as the Ashleys avoid newspaper men.^¹⁴²

Then came the panic of 1893 rendering it impossible to procure loans. At this juncture some one who knew or guessed the situation sold enormous blocks of Ann Arbor stock short in the New York market, hammered the price from 40 to 10 in a few hours, and thus caused all the company's loans to be called. It could not of course respond. A receiver was appointed; the property sold for $2,627,000, less than half of its bonded debt, and Gov. Ashley's equity was wiped out. A few years afterward the railroad had a market value of $12,000,000, or twice the old bonded debt, showing that could he have tided over this crisis, the railroad property would have made him very wealthy.

By March 24, 1893, the Toledo, Ann Arbor and North Michigan had arranged a through freight service between Minneapolis and New York called the 'Northwest Dispatch', running time 5.5 days.

Another traffic delay on Kewanuee, Green Bay & Western materialized when the Ann Arbor suffered an engineers strike. The road's president, Governor James M. Ashley, was confronted by an organizer's committee of the Brotherhood of Locomotive Engineers who pressured Ashley to discharge two senior engineers not interested in joining the union. Ashley refused, precipitating a strike in which TOLEDO, ANN ARBOR AND NORTH MICHIGAN cars were refused by union crews at transfer points. The action led to an injunction against the union for interfering in interstate commerce and the strike was broken. The traffic starvation on compounded Ann Arbors financial woes and on April 28, 1893 The Honorable Wellington R. Burt of Saginaw, Michigan was appointed receiver for the company. During the month prior to the strike the ferries made 21 trips, transporting some 70,000 barrels of flour. During the strike the two ferries remained on the Wisconsin side, while strikebreaking engineers highballed the Michigan road's trains. In May 1893 Craig's of Toledo obtained a judgment against Ashley for unpaid amounts on the two ferries, alleging that only $151,000 was paid. TOLEDO, ANN ARBOR AND NORTH MICHIGAN stock fell on the market from 39 to 12 and the long night of the 1890's recession set in, chilling enterprise for many years. Joseph Walker, Jr. and his associates were the principal creditors of TOLEDO, ANN ARBOR AND NORTH MICHIGAN, who bough up the road's stock during the crash of May 1983. Reorganization included Joseph Walker, Jr. and John Jacob Astor on the TOLEDO, ANN ARBOR AND NORTH MICHIGAN directory.

During 1893, the railroad Division offices were moved to Durand from Owosso, at this time Durand was a very important point in railroading for inter-change connections.

Engine 38 blew up in front of the depot at Emery (about 2 miles East of Northfield church) killing the fireman T. Wilson– W. G. Diaper letter to C. T. Stoner

Below possible wreck of engine 36 at Pettysville – W. G. Diaper letter to C. T. Stoner

Oct. 22, 1893 - INTO A SINK HOLE, DASH A FREIGHT TRAIN ON THE T.A.A. & N. RAILROAD, THREE TRAINMEN BURNED TO DEATH AMIDST OIL AND DEBRIS

Three trainmen met a horrible death on the Toledo, Ann Arbor & North Michigan Railroad at Hamburg Junction. A northbound freight train jumped the track and the engine sunk in a sinkhole. A coal and oil car immediately back of the tender caught fire and two of the victims were burned to death in the flames from these. The dead are: J. H. Bealieaus, engineer; George Roberts, fireman; Thomas Mulligan, brakemen. All were married and lived in Owosso.

The engine was completely capsized in a ditch, two oil tanks were poled on the engine, and three cars of coal on top of the latter, and the wreck took fire in a flash. The bodies of the fireman and engineer were burned to ashes. Three men who were in the caboose at the time of the accident were not hurt. The track was through a tamarack swamp and had recently been raised six or eight feet. The weight of the new dirt and the freight train sunk the track tree feet of more. All trains have had orders for the past month not to exceed ten miles per hour in running over this spot. Engine No. 36 was running up grade at a slow rate when the accident occurred.

The fire was intense for awhile. An Attempt was made to reach the buried men before fire caught them, but the heat was so intense that the rescuers were driven away.

April 1884 ACCIDENT ON THE NEW ROAD, THE OLD PIONEER ENGINE NO. 5 MAKES HEAR LAST TRIP

Last Saturday, as the gravel train on the new road was about two miles this side of Elsie, the old pioneer locomotive, No. 5, broke an axle on her forward truck and was thrown from the track, completely wrecking her and making her utterly unfit for further use. At the time of the accident, the train was running very slow--not over three miles an hour, and on the locomotive were five persons -- four in the cab, and a German by the name of August Arantez was sitting on the end of the tender, facing the cars. This seemed to be a favorite place for the German to ride, and the engineer and others had repeatedly warned him that he would sometime receive an injury if he persisted in riding there. When the engine left the track, she broke from the tender, and went over on her left side, the four men in the cab going with her. All escape injury. The German was thrown from the tender to the track, and on of his legs was caught between the tender and a flatcar. He was held in this painful position for fifteen minutes, before he could be released, never uttering a word while the car was being jacked up.

A messenger was immediately dispatched to Elsie for a doctor, who arrived on a handcar, and amputated the limb in two places. Farmers residing in the vicinity of the disaster were very kind, furnishing blankets and other necessaries.

The man was taken to his home in this city, on a hand car; up to this writing he is said to be doing as well as could be expected.

"No. 5" was one of the oldest locomotives in the country, but never the less she answered all purposes. Had the engine been stronger, those on her at the time of the accident would probably have fared worse. The moment she left the track, the cab went to pieces, which gave the men a better chance for their lives.

June 1884 The Headlight - Sparks from the new Road, Passenger trains will commence running between Owosso and St. Louis next month.

Seaver & Lewis of Ithaca received the first freight over the new road June 4, cheese from Elsie.

The St. Louis people intend to give the railroad employees a big supper when they reach that place.

Last Thursday night as the gravel train was nearing the city, one of the flues of locomotive No. 1, blew out, creating considerable confusion on the engine, by escaping steam. The locomotive was hauled to Owosso "dead" and after considerable trouble the flue was repaired.

We expect that all the towns long the line of the road will be represented at our grand celebration, July 4th. Turn out everybody, and make us a visit. We will open a keg of nails and cut the largest watermelon we can find in Owosso when you come. Over $2500.00 will be raised for this great "blow out."

Fred Bracy, who has charge of the track laying, is in a hurry to get through to St. Louis, as he then goes to Iowa, where he has a contract to put down 460 miles of road.

The engine used by the trackmen is "No. 1," and is called a "dinkey" by the railroad boys. She was formerly on the Saginaw Valley & St. Louis road, and is an old settler.

The water tank at Bannister is receiving a new coat of paint. It is the finest tank on the road.

Too much praise cannot be given to E. A. Todd, for the manner in which he the conducted the excursion last week.

The St. Louis people are making big preparations to receive the people of Owosso upon the completion of the road to that place. Let's take it in.

Main street crossing is 288 feet in length, 36 feet in width, and has a good railing on both sides. (Owosso?)

Thirteen cars of freight and a large number of passengers are what the first regular train brought from the north last Monday morning, to Owosso.

Names of stations on the road as far as completed: Owosso, Carland, Elsie, Banister, Ashley, Douglass, Ithaca, Church's, S. V. & St. L. Crossing, and St. Louis. Distance from Owosso to St. Louis, 39 miles.

The new freight house at St. Louis is nearly completed, and a new passenger depot will soon be commenced at that place.

The new passenger engine is a fine looking locomotive, and makes good time. George Gabel manipulates the throttle, and Oscar Throop rings the bell and drives the cattle off the track.

On account of the fences not being completed, a cow or some other animal comes to grief almost every day, unless they are made to take a walk.

The way Teddy Conroy makes the boys "get to the front" in the yard is surprising. The boys now and then put up a job on "Ted" which make him very "huffy” or in other words, very "hot."

The new passenger coaches are painted bright red, and decorated with gilt letters.

The railroad has been a great benefit financially to Owosso during its construction, notwithstanding what a few disaffected say to the contrary. The boarding houses have all reaped a rich harvest as well as other branches of business. Go to the company's temporary freight office, and you will be surprised to see the large amount of merchandise ready for shipment to the small towns northward. Towns along the line are growing rapidly, and Owosso is to them what Detroit is to us, comparatively speaking. Owosso is bound to be benefited by the road, and the sooner the "knickers" see it in this light and speak an encouraging word for the road the better it will be all around.

An elaborate plan and agreement for the reorganization of the Toledo, Ann Arbor and North Michigan Railroad has been prepared by the Reorganization Committee and will officially promulgate today. The committee is composed as follows: George W. Murray, Chairman; Thomas A. McIntyre, William H. Male, Joseph Richardson, and Henry S. Redmond. The Messrs. Hoadly, Lauterbach, and Johnson are counsel to the committee.

Prefacing the plan is the following statement of the company’s present financial condition:
First mortgage bonds of the several divisions.
(a.) Toledo, Ann Arbor and Grand Trunk, 6 per cent $1,260,000
(b.) Toledo, Ann Arbor and North Michigan, 6 per cent 2,120,000
(c.) Toledo, Ann Arbor and Mount Pleasant, 6 per cent 400,000
(d.) Toledo, Ann Arbor and Cadillac, 6 per cent 1,260,000
(e.) Toledo, Ann Arbor and Lake Michigan, 6 per cent 767,000
Total first mortgage bonds $5,807,000

Consolidated Mortgage Bonds
Toledo, Ann Arbor and North Michigan, 5 per cent $1,443,00

Bonds on Purchased Property
Frankfort and Southeastern $235,000
Common stock, 65,000 shares, at $100 each 6,500,000
Car trusts 65,000
Floating debt 220,000

The common stock now has but little value, and no prospective value, except under a sound reorganization.

Under the proposed plan of reorganization a new railroad company will be created to acquire all the rights, franchises, and property of the present company. The new company will create and issue a new fifty-year gold bond of $1,000, bearing 5 per cent interest and secured by a mortgage or deed of trust, which, upon the satisfaction of existing liens, will become a first lien upon all the new company’s property, rights, and franchise, and which shall contain such provisions for the protection and security of the holders of said bonds as counsel shall advise. These bonds will bear interest from the 1^st day of January, 1895, and be limited in amount to $7,000,000, and they will be exchanged on equitable terms with the old bonds of the company.

Holders of any of the old classes of bonds are to deposit them with the Farmers’ Loan and Trust Company, and receive therefore negotiable reorganization receipts. Application will be made to list these reorganization receipts on the New York Stock Exchange as soon as a sufficient number of bonds shall have been deposited.

Holders of the common stock of the present company shall, upon the surrender of their stock and the payment of $5 in cash per share, become entitled to receive, upon the completion of the reorganization, an equal number of shares of the common stock of the new company. For the amount of the cash assessment paid in, they shall receive at the completion of the reorganization an equal amount of 5 per cent noncumulative preferred stock of the new company at par. The assessments, which are payable in two or more installments, are payable at the Atlantic Trust Company’s office, this city. The new company will issue the following securities, which shall be the only liens upon all its property, rights, and franchises:
New 5 per cent gold fifty year bonds $7,000,000
To exchange for bonds of present company 5,767,100
Leaving in the treasury, to be used for acquiring additional stock, to
procure terminals, if necessary, betterments, and such other
purposes as may be deemed by the committee for the best interests
of the road, (all bonds not used in the reorganization of the
property will be turned over to the new company by the committee.) $1,232,100
New 5 per cent non-cumulative preferred stock 2,850,000
(Issued in exchange for old bonds, in settlement of accrued interest
and for the cash assessment on the old stock.)
New common stock, 65,000 shares, at $100 each $6,500,000
(Issued in exchanged for old stock, upon the payment of $5 cash per share.)^¹⁴³

The line from Thompsonville to Frankfort, MI, was conveyed on June 12, 1895, by A. C. Hall and G. L. Day purchasing trustee, to the Escanaba, Frankfort and Southeastern RR Co., then to the Toledo, Ann Arbor & North Michigan Railway on 10/15/1895. On 10/14/1895, the line between Toledo, OH and Thompsonville, was conveyed by the purchasing trustee, R.C. Martin, to the Toledo, Ann Arbor & North Michigan Railway, this combined trackage formed the main line from Toledo, Ohio to Frankfort, MI.

A new three mile long line was build from Hallet tower to Cherry Street in Toledo, along the north side of the old Miami Canal project, where a passenger station, which also housed the general offices for the railroad, was built. Later this property would be expanded to include a freight house and a small switching yard called 'Elm Street'.

Meanwhile, the foundations for a surrounding system of feeder lines had been laid. The first was the Toledo, Saginaw & Muskegon^¹⁴⁴. James M. Ashley, Jr., himself took a hand here, the only case where he found the means to do so. The President and leading spirit of this line was Mr. David Robinson, of Toledo, a friend of the Governor's, and longtime member of the board of the main company, and a prominent and wealthy owner of street railroads in the Ohio city.^¹⁴⁵ The Saginaw portion of the line was deferred, and finally abandoned, but the western section, from the village of Ashley, on the Toledo, Ann Arbor & North Michigan main line, to Muskegon, a total of ninety-six miles was put in operation in 1887.^¹⁴⁶ A joint service passenger/freight depot serviced both railroads. This line put the Ashleys in competition with the Grand Trunk and the Detroit, Lansing & Northern for the business of west-central Michigan as well as giving them an outlet to Lake Michigan several years before the main line reached that objective, at South Frankfort.

It will be recalled that Mr. William Brown played an important role in the deal, which brought the Wright interests into the Ashley system. He continued interested in the operation and expansion of the combined organizations, and helped to raise funds for the later additions. On one occasion, when he approached an acquaintance that he thought might be induced to invest, he was met with this argument. The gentleman conceded that when the Toledo, Ann Arbor & North Michigan reached Lake Michigan, it would be the most valuable railroad property in Michigan, with the exception of the Michigan Central itself. He said, however, that the lake was only about sixty miles wide there, and that this would never stop Jim Ashley. The Governor would either bridge it or tunnel it and Mr. Brown’s prospect did not wish to have to put up money for a project like that. Brown told Ashley the story as a joke, but instead of a laugh, he got the answer that the intention was to do a sort of combination of both, though it would not cost as much as most people thought.^¹⁴⁷ The combination was to go neither above nor below the surface of the lake, but on it, using car ferries.

The idea of railroad car ferries as such was not new, for many railroads had ferried their trains across rivers and empty cars had been deck-loaded on lake and ocean-going ships. No one had thought it feasible to build a ship which would take complete, loaded trains, however, and a further obstacle was provided in the fact that navigation of Lake Michigan was obstructed for several months each year by ice. As an additional problem, the ships would have to be built on credit, and no shipbuilder was willing to take the risk of failure.

Making provision for conversion of the ferries to passenger service and locating a shipping concern, which would use them for that if the railroad project proved unworkable, solved the last problem. The Craig Shipbuilding Company of Toledo then undertook the work.^¹⁴⁸ The ferries were built as ice-breakers, with a small bow propeller which projected a jet of water forward, raising the ice and cracking it to facilitate the profess of the bow. Fresh-water icebreakers have since generally adopted the system. James M. Ashley, Jr. is credited with invention of this feature.^¹⁴⁹

At first no one would risk a shipment, but President Ashley finally put pressure on the Coal Company from which the railroad bought its fuel, and soon both No. 1 and No. 2 were fully employed.^¹⁵² Considerable trans-lake trade developed due to the fact that up to two days time could be saved over the Chicago route. No. 1 ran aground on her first trip, but was easily pulled off, and Ashley used the incident to advertise the sturdy construction of his ships.^¹⁵³

The Ann Arbor RR started its own express business on May 1, 1898, after using the Adams Express Company.

With the forming of a new railroad, came the problems of financing it and paying the Ashley interests, for their property. To over come these problems the Ann Arbor Railroad, floated its first loan, a bond issue.

This indenture made the 1st of July 1895, by and between the Ann Arbor Railroad and the Metropolitan Trust Company of the City of New York.

Whereas, the Railroad Company is the owner of a line of completed railway extending from Toledo, in the State of Ohio, to Frankfort, in the State of Michigan, together with certain piers, docks, steamboats and other real and personal property, here in after more fully and at large described, an is authorized under and by virtue of the laws of the State of Michigan to maintain and operate said line railway. Whereas, the Board of Directors of the said Railroad Company, under and in pursuance of a resolution passed by the stockholder of said Company, at a meeting duly called for that purpose according to law, on the 21st day of September, 1895, have resolved that said Railroad Company shall make, execute and deliver, under its corporate seal, seven thousand bonds of the denomination of $1,000 each, and numbered from one to seven thousand, both inclusive, and bearing even date with these presents, payable to the bearer thereof, at the office or financial agency of the Railroad Company in the City of New York, on the 1st day of October, 1995, in gold coin of the United States of America of the present standard of weight and fineness, and bearing interest at the rate of 4 per cent per annum, payable quarterly, in like gold coin, on the first days of October, January, April and July, in each and every year, according to the tenor of the coupons or interest warrants there unto annexed. All payments, both of principal and interest, to be made free and clear of all taxes; said bonds to be numbered consecutively from one upwards, and each of said bonds to be duly executed under the seal of the Railroad Company, signed by its President or Vice-president and attested by it Secretary or Assistant Secretary, and the interest coupons thereto annexed or belonging, to be authenticated by or with the engraved signature of its Treasurer. Whereas, in order to secure the payment of the principal and interest of all of the said bonds, equally and ratably, without priority or distinction, irrespective of the date of the issue of the same, the Railroad Company has by due and legal action of its stockholders and Board of Directors, as aforesaid, determined to execute and deliver this Indenture, and it has further determined that each of said bonds shall be certified by the Trustee, which certificate shall be conclusive proof that the same is secured by this Indenture, and that each of said bonds shall be substantially.

Know all Men of these Presents, that The Ann Arbor Railroad Company, a corporation organized and existing under and by virtue of the laws of the State of Michigan, for value received hereby acknowledges itself indebted unto and promises to pay to the bearer of this bond, or, if this bond be registered, then unto the registered holder hereof, the sum of one thousand dollars in gold coin of the United States of America of the present standard of weight and fineness, at the office or financial agency of the said Company in the City of New York, on the first day of July, AD on thousand nine hundred and ninety-five, and to pay interest thereon, in like gold coin, from the first day of July, 1895, at the rate of four per cent per annum quarterly, on the first days of October, January, April and July in each and every year, at said office or financial agency, upon the presentation and surrender of the coupons or interest warrants hereto annexed, and those to be hereafter annexed, as is in the coupon warrant hereto annexed provided, as they severally become due and payable.

All payments upon this bond, both of principal and interest, shall be free and clear of any and all taxes which the Railroad Company may be required to pay or to retain therefrom under or by reason of any present or future law or laws, the Railroad Company hereby agreeing to pay all such taxes.

This bond is one of a series of bonds amounting in the aggregate to the sum of seven million dollars ($7,000,000), and consisting of 7,000 bonds, numbered from 1 to 7,000, inclusive, for $1,000 each. All of said bonds are of even date and like tenor, and the payment of each and every one thereof is equally secured by a mortgage or deed of trust bearing even date with this bond made by said The Ann Arbor Railroad Company to the Metropolitan Trust Company of the City of New York, as Trustee, conveying, upon the terms and conditions therein set forth, all the franchises and property, real, personal and mixed, of the said Railroad Company, mentioned and described in said mortgage or deed of trust, and all the tolls, incomes, issues and profits therefrom, as the same shall accrue, as is in said mortgage or deed of trust more fully and at large set forth. If default be made in the payment of any of the coupons hereto annexed and to be annexed, and such default continue six months, then the principal of this and all others bonds issued under and secured by the mortgage and all other bonds issued under and secured by the mortgage or deed of trust herein before referred to will be liable to become due and payable, in the manner and upon the conditions provided in said mortgage or deed of trust, and in case of any proceedings under said mortgage or deed of trust, or to enforce the lien thereof, the said Company waives the benefit of any exemption, stay, redemption or appraisement laws now existing or which may hereafter exist.

This bond shall not be valid until authenticated by a certificate endorsed heron, duly signed by the said Trustee, or its successor or successors in the trust.

In Witness Whereof, the said The Ann Arbor Company has caused this bond to be signed by its President or Vice-president, and its corporate seal to affixed hereto, and attested by its Secretary or Assistant Secretary, and has likewise caused a fac-simile of the signature of its Treasurer to engraved on each of the Annexed coupons and coupon warrant this first day July, AD 1895.

This bond may be registered in the owner's name on the Company's books in New York City, such registry being noted on the Bond by the Company's transfer Agent, after which no transfer shall be valid unless made on the Company's books by the registered owner, and similarly noted on the bond, but the same may be discharged from registry by being transferred to bearer, after which it shall be transferable by delivery, but it may be again registered as before.

The registry of the bond shall not restrain the negotiability of the coupons by delivery merely.

September 21, 1895 The Ann Arbor Railroad is formed to succeed the Toledo & Ann Arbor. (Some sources say September 20.)

Along with the new name, the Ann Arbor Railroad Company came much needed upgrading and rebuilding of the original build railroad, new construction; Ann Arbor to Whitmore Lake, 7.5 miles, this new construction allowed the Ann Arbor to abandon its trackage from Horse Shoe Lake to Leland via Emery, 6 miles. The abandonment of this property along with the sale of the remaining property to pre-GTW railroads completed the abandonment of the South Lyons extension. Hamburg to Hamburg Junction (Lakeland), 3.0 miles, eliminated the joint operation over this trackage by the Ann Arbor and pre-GTW railroads. A new place on the railroad Howell Junction (Annpere 1906), the crossunder of the Ann Arbor railroad under Detroit, Lansing & Northern RR the was eliminated by moving the junction point several rods east and crossing the two railroads at grade level, starting two miles south to two miles north of the Detroit, Lansing & Northern RR, a new line was installed and the old one removed also a new passenger station and interlocking tower was also constructed.

During 1896, the Pere Marquette RR Company obtained on a long term lease its own entrance into Toledo, by leasing 5.6 miles of trackage, including station faculties at both Toledo shops and station faculties at Cherry Street and Alexis stations, for a period of 990 years from January 27, 1896, at rental of $26,000 per annum, with maintenance and operation on a tonnage basis. The Pere Marquette then added a six stall roundhouse jointing the Ann Arbor's roundhouse, sharing the same turntable and builds several auxiliary buildings for their own use.

The Arcadia & Betsey River RR, mainly a logging railroad, running mixed train service reached Copemish on Dec. 12, 1896. This connection was over roadbed constructed by the TOLEDO, ANN ARBOR AND NORTH MICHIGAN and never railed, giving the Ann Arbor RR another interchange connection point.

1897 a spur built from one mile west of Sherman, to the Ann Arbor RR built by the people of Sherman. Where a burg called West Sherman or Claggetville was located, the site had a large stave and heading mill.

In 1896, the Toledo, Ann Arbor & North Michigan Railway Company received permission from the Secretary of War to add 400 feet to the south pier extension under the supervision of the Engineer Officer in change of District, work was done 1897.^¹⁵⁴

Before any work was done at this place the Government the natural outlet from Frank Lake (Lake Aux Becs Scies) to Lake Michigan had been slightly improved by local enterprise and a narrow channel with a navigable depth of from 3 to 4 feet temporarily obtained. This outlet was abandoned by the Government when work was commenced under the appropriation made by the river and harbor act of June 23, 1866, and the project then adopted was dredge a straight channel from lake to lake about 750 feet south of the old outlet and protect it by revetments and piers 250 feet apart, extending to the 12 foot curve in Lake Michigan, the object having been to establish a reliable entrance channel with a navigable depth of 12 feet. By the river and harbor act of June 3, 1896, a navigable depth in the channel of 18 feet is authorized.

At the Close of the last fiscal year a contract was in force with Conald A. and William McLeod for the extension of the north pier 400 feet and of the south 200 feet. The cribs had been sunk in their proper position and a portion of the superstructure had been put in place. The superstructure completed, filled with stone, and decked over by September 11, 1896.

Minor repairs were also made to the piers by day labor and Government plant. A number of holes in the north pier near the shore line were closed by sheet piling, waling replaced that had been injured or removed, 59 cords of stone added where needed, and a sand fence 160 feet long and 7 feet high built in the south pier.

The available depth of water at the close of the last fiscal year was 13 feet. Under a contract with William A. Starke, dated May 1, 1896, dredging was begun on September 8. A channel 90 feet wide was excavated to 19 feet below the zero of gauge (17 feet at the prevailing stage of Lake Michigan) from the inner ends of the piers to deep water in the lake, a distance of about 2,000 feet. The work was completed October 10, and 37,593 cubic yards of material were removed.

On June 25, 1897, bids were opened for reconstructing the superstructure of the north pier between Stations 3+96 and 8+47, and of the south pier between Stations 1+87 and 6+99.

In addition to the work done by the Government, the Toledo and Ann Arbor Railway Company, under authority issued by the Secretary of War, January 10, 1896, has added 400 feet to the south pier, at its own expense, for the better protection of its trans-lake car ferry service. The work was done the supervision of this office, and consists of four cribs, 100 by 30 by 18.5 feet, with a continuous superstructure 6 feet high. Each crib rests on 64 piles having a penetration of from 17.5 to 22.5 feet, and sawed off at an elevation of 18.8 feet below the zero of gauge. The method of construction was similar to that of the cribs built the Government in the preceding year and described in the last Annual Report.

The total amount expended in improving this harbor to June 30, 1897, is $324,348.53, of which $33,124.10 was spent during the last fiscal year.^¹⁵⁵

Through exchange of right of way and track with the Detroit, Grand Rapids and Western RR Co. on 15, 1897, the follow grade was acquired, Alma to Ithaca, 7 miles. This line was built originally as the Ithaca & Alma Railroad, and then became the Ithaca branch of the Saginaw Valley and St. Louis Railroad, turning south from a point west of the Pine River, present North Court Street. A 1.25-mile addition was built from this line to connect with the Ann Arbor crossing the Pine River. Then abandoning the Ithaca to St. Louis, 9 miles (St. Louis branch), the grade from Alma, MI, to St. Louis, 3 miles (St. Louis branch). Then abandoned Ithaca to St. Louis - 9 miles (St. Louis branch), these actions eliminated the main line and operations through St. Louis by the Ann Arbor railroad.

After the Ann Arbor Railroad removed its trackage to St. Louis, the city of St. Louis, bought suit against the railroad, the railroad won the lawsuit and finally settled out of court by returning $10,000.00, to the St. Louis investors, of the $17,446.00 they had invested in bonus money. Congressman Archibald B. Darragh and other citizens of St. Louis sued the Ann Arbor Railroad Company to recover the amount of their subscriptions to the company to assist in constructing the abandoned line. A circuit curt jury gave them a judgment for $18,000, and the railroad company appealed to the Supreme Court. They claimed the act under which recovery was had was unconstitutional. They also raised other important objections. On Wednesday morning, May 8th, Benton Hanchett, attorney for the Ann Arbor Company made Searl and Krell, attorneys for the plaintiffs, an offer of $10,000 and costs of the litigation. The settlement was accepted and the case was closed.

The running rights on the Ann Arbor Railroad were leased to the Grand Trunk Railroad between the Owosso Junction connection with the Grand Trunk Railroad, and Ashley, at its connection with the Toledo, Saginaw & Muskegon Railway Company, 21.5 miles. This agreement is a year to year basis with year's notice, under agreement dated June 1, 1897. Jim Ashley Jr. and the other investors had sold the Toledo, Saginaw and Muskegon Railway to the Grand Trunk Railway.

The first advertisement for the Ann Arbor RR Express Company appeared, located at the corner of Cherry and Seneca Streets, with local office at 507 Jefferson. The Pythian Castle building located at southwest corner of Jefferson and Ontario is also the offices for the Ann Arbor RR.

On June 14, 1899, the Menominee and St. Paul Railway Company were chartered to run from Menominee, MI to the Wisconsin State line, some 10 miles. In 1900, Menominee and St. Paul was placed into service, with 1.49 miles of track, under an operating contract with Chicago & North Western RR.

2-15-1900 the station on the Ann Arbor RR formerly known as Harlan, is now known as Carpenter's Corners.^¹⁵⁶

6-21-1900 The AARR people have three carloads of lumber here for the new (?) depot. It had served as a depot at a small station south of Cadillac (Lucas)^¹⁵⁹

The Ann Arbor steam shovel went north, Sunday night, begun work north of Beulah. Copemish is coaling station and boarding point for work crew day and night.^¹⁶¹

11-29-1900 Frankfort tracks is laid-up Main Street as far as the island.^¹⁶³

12-6-1900 PM has 40 men working at Baldwin, laying five tracks, with engine house^¹⁶⁴

3-11-1901 due to snow 11:20 AARR train to Frankfort cancelled, G. M. Disbrow, operator for AARR.^¹⁶⁵

On 8-25-1901 excursion to Crystal Lake and Frankfort by special train leaving Thompsonville at 11:00 AM, fare for the round trip 50 cents.^¹⁶⁶

On 9-8-1901 excursion to Crystal Lake and Frankfort by special train leaving Thompsonville at 11:00 AM, fare for the round trip 50 cents.^¹⁶⁷

On April 22, 1902, an interlocking plant with the Detroit, Ypsilanti, Ann Arbor, and Jackson Railway has installed in Ann Arbor.

8/2/1902 - building PM depot, depot to have basement, heat by steam, walls hand finished, men and women waiting rooms, office to have bay window^¹⁶⁹

12-30-1903 – Next spring, so the rumor goes, the Ann Arbor Railroad Company will straighten its tracks as it approaches this city (Owosso) from the east. It will cross the Corunna road near the Derham farm and come up past the water works through the company’s extensive yards.^¹⁷⁰

Gross earning of this company for the year ending 1903 were $2,037,215, an increase of $143,805. Operating expenses were $1,324,052, an increase of $101,430, leaving an increase in net earnings of $76,274. The average rate tons ton-mile increased slightly, while the revenue tons per train-mile increased from 280 to 292 and the average revenue per train mile increased from $1.91 to $2.92. The trans-lake service of the company produced 42.5 per cent of the total freight earnings for the year. In order to keep this traffic up to the present standard, a new freight-car boat, with a capacity of 30 cars has been ordered. The trackage rights have been leased to the Wabash, been Milan and Toledo, at a fixed rental of $20,000 per year.^¹⁷¹

Ann Arbor, two spans of the Ann Arbor Railroad's steel trestle bridge across the Huron River gave way at 4:15 o'clock Wednesday afternoon just as a heavily loaded freight train was crossing, and THIRTEEN of the cars are lying on the ice beneath. The ill-fated train was an extra from Toledo to Frankfort, comprising twenty-seven cars, all laden with general merchandise. Just as the coal car reached the place where the break occurred, it went down and dragged the other cars with it. The train had just come up a steep grade and was being pushed by the yard engine, which dragged the caboose and three cars back as soon as the engineer noticed that something was wrong. The engineer at the front of the train, when he noticed the shock, set his brakes hard and succeeded in breaking the couplings and saving ten cars from going down. Traffic is entirely suspended on the line so far as freight is concerned, though the managers of the road have made preparations for the transfer of the passengers to trains that will come down on the other side of the river.

The bridge is about fifty feet above the ice, and was designed in 1880 by the late Dean Charles E. Greene of the University of Michigan. It was the first trestle bridge in the United States to be built on a curve.

Ann Arbor Engineer Purcell was injured last night by the breaking of a side rod on his engine last night, Ann Arbor Engineer Micheal Purcell of Toledo, formerly of this city, received serious injuries, two ribs being broken by the flaying bar, Internal hurt is also feared, but it is believed that Mr. Purcell will recover.

Mr. Purcell's own engine was not in commission, and engine 24 was pulling the train, which was the evening northbound passenger No. 3. About two miles south of Bannister, while the train was bowling along at thirty miles an hour, the whirling side rod broke in the center and flew upward. The first revolution knocked the engineer from his seat into the gangway of the engine, fortunately out of range of further trouble. The rod then demolished the cab.

Mr. Purcell was to his home in Toledo by a special train, and the engine was returned the shops. The regular train was delayed some hours.

Feb. 29, 1904 - A double-header northbound on the Ann Arbor met with a mishap near Owosso Junction Yesterday. Engine 25 in charge of engineer William Byerly of this city was torn in two, the engine proper parting from the tender under the strain of moving heavy freight. No. 25 was sidetracked and will be repaired at the Owosso shops.

No. 1 northbound 10:57 AM No. 2 southbound 9:45 AM
No. 3 northbound 6:55 PM No. 4 southbound 6:40 PM
Trains No. 2 & 3 - carry sleeper car, No. 1 & 4 - carry chair car

The Ann Arbor work trains are making the long hauls now, running from Chilson to Forest Hill and from there to Mt. Pleasant where the gravel is plowed off.^¹⁷²

The Ann Arbor RR is not yet using the new Union Depot, constructed by the Grand Trunk here, but it is believed satisfactory arrangements will soon be made. There have been several conferences between officials of the two systems recently, and that they would come to terms. Offices have been reserved for the Ann Arbor officials here. When such a move is made the Ann Arbor depot will be consigned to the scrap pile, although it is as good a depot as our sister city, Owosso, possesses.^¹⁷³

The Ann Arbor is building another observation car like the "Crystal Lake."^¹⁷⁴

During 1904, Superintendents offices were moved back to Owosso. Early in 1905 the Ann Arbor RR came under control of H. B. Hollins and Company and Eugene Zimmerman and associates, who were heavily interested in the Detroit, Toledo and Ironton Railway Company, of which Eugene Zimmerman was president.

On the Saturday morning the operators along the old Canadian Southern line between Dundee and Trenton, MI, received word that the officials from Detroit & Lima Northern were going to inspect the line, when the inspection train arrived at Dundee, it was discovered that the wye track between the Ann Arbor RR and the old Canada Southern had be removed. This forced the inspection train to go to Milan, then over the Wabash RR to Romulus and the PM to Carleton, to gain access to their own tracks.

March 18, 1905 a wreck on the Ann Arbor RR between passenger and work trains near Mesick, caused by failure to observe a flag. Both firemen were killed and the engineers were badly injured.

Dundee Suffers Disastrous Fire – Mill, Coal Yard, and Stores Destroyed.^¹⁷⁵

Dundee, Michigan, April 30 – Started from gasoline in Station – loss $17,000

The most disastrous fire in years occurred here at about noon today. Agent Ridge of the Ann Arbor road, while building a fire at the station, by mistake threw gasoline instead of coal oil into the stove. An explosion followed, badly burning him about the face and hands, while the flames shot into the room and before the alarm could be turned in the building was in a blaze. Mr. Ridge managed to save his tickets and some of the records. A high west wind was raging, carrying the flames across the track to Frank Strongs’ grain elevator, feed mill, and coal yards, completely destroying the entire outfit. Box cars standing on the siding filled with merchandise and the large water tank of the road were also burned.

The loss to the railroad is over $2,000, with no insurance. Strong’s loss will reach $15,000 or more, with $2,000 insurance.

On June 1, 1905, Detroit, Toledo & Ironton RR acquired control of the Ann Arbor RR Company by purchasing $3,010,000 of its common stock and $2,190,000 of its preferred stock, in all say 72% of its capital stock

September 25, 1905 The Durand (MI) Union Depot is re-opened after a disastrous fire the previous April.

In 1906 a contract with the American Palace Car Company for use of four parlor sleeping cars

March 1906, arrangements with the American Locomotive Company for 4 Atlantic (4-4-2) type locomotives and 6 consolidation (2-8-0) type freight locomotives.

On Feb. 1 the federal court sitting at Toledo imposed a fine of $15,000 on the Ann Arbor Railroad for giving rebates. The road was indicted in December on 155 counts; six of these were admitted and the other 149 were not pressed. The present owners claimed the road’s former owners paid the rebates and that they knew nothing about the transaction. The alleged rebates were paid to the Toledo Ice & Coal Company on shipments of ice from Whitmore Lake to Toledo.

March 2, the following official notice has been sent to the holders of the preferred stock of this company: "The board of directors of the Detroit Toledo & Ironton Railway Company having authorized the acquirement of the outstanding preferred stock of the Ann Arbor Company by the issuance in purchase thereof at par of its consolidated mortgage 4 1/2 per cent gold bonds, notice is hereby given that this company is prepared to deliver in full payment and exchange there for each 10 shares of preferred stock of the Ann Arbor Railroad company $1,000 in its consolidated mortgage 4 1/2 per cent gold bonds with the coupons due August 1, 1906, and all subsequent coupons attached, upon delivery of the shares of stock to the Knickerbocker Trust Company, 66 Broadway, at any time prior to March 31, after which time the right to exchange shall cease. For fractional shares scrip, convertible into bonds in domination of $1,000, will be issued. The consolidated 4 1/2 per cent bonds are August 1, 1980, and interest is payable on February 1 and August 1."

March 15, an order has been placed with the Pullman Company for two coaches and two combination coach and cafe cars, all for delivery June 1.

April 27, 1906, Ann Arbor Railroad has just built at its Owosso shops 26 box cars, 36 feet in length and of 80,000 pounds capacity, and five cabooses, and now has under construction two 65-foot combination mail and passenger cars. The Saint Louis Car Company is building two cars for use on this road for delivery on July 1. These will be owned by the American Palace Car Company and are quite similar to the private car Columbia described in The Railway Age of Nov. 3, 1905.

During 1907, the 60# rail between Homestead and Thompsonville replaced with 85# A.S.C.E. rail.

July 12, 1907, The Ann Arbor is reported that this company plans to extend its line by building from Menominee, Mich., on the west shore of Lake Michigan, northwesterly to Duluth and Minneapolis. The Ann Arbor Company now reaches Menominee by car ferry line from its terminus at Frankfort, Mich., across the lake. One reported reason for the extension is the discovery of iron ore in large quantities on lands owned by President Zimmerman in Iron County, Michigan. The distance from Menominee to Duluth is something like 250 miles.^¹⁷⁶

Beginning Dec. 1, 1907, Detroit, Toledo & Ironton ran trains from Napoleon, Ohio to Dundee, MI over Wabash RR (Napoleon to Gould), Toledo Terminal RR (Gould to Toledo), and Ann Arbor RR (Toledo to Dundee) 22.03 miles, where they then ran over their own tracks from Dundee to Detroit.

In 1907, the contract with Palace Car Company was cancelled, and the railroad entered into a contract with the Pullman Company, whose parlor and sleeping cars are now operating on through trains. Also a through sleeping car line between Columbus, was established on July 1st, operating tri-weekly for tourist season, ending September 1st.

This is a combination of two small weak railroads. The combined lines run from the Ohio River to the northern part of Lake Michigan, from which there is connection by car ferry with a number of different ports on the western shore of the lake. The southern end of the line, from Frankfort, Mich., is Toledo, Ohio, is the Ann Arbor Railroad. The southern line, from Detroit, Mich., south to Ironton, Ohio is the old Detroit Southern, now reorganized as the Detroit, Toledo and Ironton. The two roads were united in the hope of developing a larger aggregate of traffic by the alliance. This was successfully accomplished in 1906, the first year of combined operation. In which, the combined net earnings were $1,200,000, against $720,000 on 1905 and the combined operating ration 67 per cent, against 78 per cent in the earlier year. The second annual report of the two roads shows that in 1907 there was only a slight increase in gross earnings, a decrease in net earnings and, owning to the application for the full year of the interest charges on the new Detroit, Toledo and Ironton bonds, a large decrease in net income. The consolited results for the last two years are shown in the table at the end of this review. In general the report takes up each of the two roads separately.

The Detroit, Toledo and Ironton, which showed great progress in 1906, went backward last year. Freight earnings decreased 4 per cent and passenger earnings 3 per cent, while operating expenses increased 12 per cent. The reason gross earnings were larger than in 1906 is that earnings from car per diem, car mileage and hire of equipment, which are included in gross earnings, were over twice as large as in the previous year. Receipts, from these sources amounted to $434,324, against $205, in 1906, an increase of 111 per cent. The 1907 figure is over twice as large as the total receipts from passenger, mail, and expresses earnings. It is probable that there is no other railroad with as much mileage (138), which makes this showing. These earnings, instead of being as advantage to the road, are small recompense for being of a large part of its equipment for several weeks or months of the year. It has a large tonnage of coal for domestic consumption, which moves mostly in the fall and early winter and is destined to great many different points off the line. Once these cars leave the road they are generally not returned till spring. Meanwhile the company is unable to satisfy the legitimate demands of its own shippers. Last year these shippers, unable to obtain cars, complained to the Railroad Commission of Ohio. In rely the Ohio authorities threatened to revoke the charter of the company if cars were not furnished more promptly to shippers. The company’s position is that if it had ten times as many cars they would, under present conditions, be loaded out during October and November and not returned, and shippers would be little better off than they were last year during the winter months. The Detroit, Toledo & Ironton, therefore, is a road on which the present conditions of the car interchange have fallen with particular severity. The raising of the per diem rate from 25 cents to 50 cents a day last summer will increase its car service earnings, but it is obvious that even this increase will nowhere nearly make up for the hardship of being deprived of large numbers of cars for which loading is available. This state of affairs is probably largely responsible for the decrease in freight earnings.

One reason for the increase in operating expenses was that more was spend on the maintenance accounts. There was only a small increase in the non-productive accounts. Maintenance of way cost $723 per mile, against $628 in 1906; and repairs and renewals of equipment $1,704 per locomotive, against $1,055 in 1906; $474 per passenger car, against $322 in 1906, and $28 per freight car, against $22 in 1906. These are low figures, particularly in the freight car item. An average of $25 a year will not maintain modern freight equipment. The showing is made worse by the fact that no new equipment of any kind was bought during the year.

Net earnings were $555,000, while fixed charges amounted to $927,000, leaving a deficit for the year of $372,000. There was a previous profit and loss deficit of $365,000, so that the Detroit, Toledo and Ironton on June 20, 1907 showed a total profit and loss deficit of $677,000.

The Ann Arbor spent less than in previous year on maintenance. Its increase in operating expenses was in conducting transportation. Maintenance of way cost $864 per mile, against $1.029 in 1906. This is a large decrease, particularly for a year, when costs were generally higher. Equipment repairs and renewals costs were generally higher. Equipment repairs and renewal cost $1,337 per locomotive, against $1,462 in 1906; $678 per passenger car, against $519 in 1906, and $63 per freight car, against $69 in 1906. The locomotive figure is low; the other fairly adequate.

The prospects for the present year are said to be favorable for both roads. Whether the increased capacity and activity of the different industries mentioned would continue in face of the present depression is a question. A new traffic development in the beginning of special train service from Toledo to Detroit to handle coal for the Solvay Process Company and coal dealers in Detroit. This train has had an average of about 20 cars per day since it has been running. The Ann Arbor is increasing its summer tourist travel. To extend its possibilities in this direction it has canceled its contract with American Palace Car Company and made a contract with Pullman Company. As a result a Pullman sleeping car line was established on July 1, 1907, between Columbus, Ohio, and Frankfort, Michigan, in connection with the Hocking Valley between Columbus and Toledo. This car was operated in each direction three times a week until September 1 and bought satisfactory returns.

The following table shows the results of the past two years, during which time the two roads have been operated together. The detailed figures of earnings and expenses of the Detroit, Toledo and Ironton and the Ann Arbor are added so as to show them for the combined properties.

^¹⁷⁸Bands man John Phillip Sousa and associates were riding the rails from Toledo to Ann Arbor to fulfill their concert obligation when their “special” was derailed from the Ann Arbor tracks on Dec. 9, 1907 just north of the Sherman Road crossing, south yard limit of Milan.

None of the Sousa bands men were injured and another train was sent from Ann Arbor so they could complete their journey.

The bad new were that the locomotive engineer, Charles W. Stever, sustained a broken back in the pile-up. He was taken to the University Hospital where he died on January 28, 1908 at the age of forty-three years, two months and 28 days. Charles was a native-born Milanite and He was buried in Marble Park cemetery.

By Feb. 1st, 1908, Detroit, Toledo & Ironton were placed in the hands of the receivers, after action filed by the Knickerbocker Trust Company. This action followed default on a mortgage in default had covered monies borrowed to help buy the Ann Arbor stock in 1905.

March 13, 1908, Detroit Toledo & Ironton - A new Committee has been organized to represent holders of the 5 per cent collateral trust notes. As follows: F. Lothrop Ames, Charles F. Ayer, Boston; P. G. Gossler, George W. Young, Henry A. Murray and E. Rollins Morse, New York; C. D. Warren, Toronto, Ont. This committee announces that it will aid in the formation of plans intended to develop traffic for the two railroads, which the note holders are interested [the Detroit Toledo & Ironton and the Ann Arbor]. And they also will co-operate in the development of coal and timberlands in which some of the members of the committee are interested. The development of which will give added tonnage to these roads. Horton C. Rorick, of Spitzer & Co., Toledo, has started suit in the Michigan state courts to secure an accounting for the Detroit Toledo & Ironton of the profits stated in the suit at $1,281,500, made by the syndicate which sold the stock controlling the Ann Arbor to the Detroit Toledo & Ironton. The coupons due on March 1, 1908, on $4,495,000 underlaying Detroit Southern first mortgage bonds were paid on March 2.^¹⁷⁹

Sept. 11, 1908, Detroit Toledo & Ironton - The $867,000 5 percent collateral trust notes held as security for a loan by Rudolph Kleyblte & Co. have been sold at auction, selling as high as 70. An agreement has been reached between the two interests controlling the Detroit Toledo & Ironton collateral trust notes, which are secured by the Ann Arbor stock. The Ramsey committee will be allowed to choose successors to the three directors of the Ann Arbor retiring at the annual meeting Sept. 19. There are 11 directors on the Ann Arbor board.^¹⁸⁰

On Oct. 10, 1908, Detroit, Toledo & Ironton discontinued running rights over Ann Arbor RR between Toledo and Dundee, and leased running rights over the Lake Shore & Michigan Southern from Tecumseh to Dundee were obtained. The Detroit, Toledo and Ironton had already built a line to Tecumseh, MI, from Napoleon, Ohio.

Nov. 20, 1908, Detroit Toledo & Ironton - The Collateral securing $5,500,000 5 per cent notes of the Detroit Toledo & Ironton is to be sold at public auction on December 1 for the account of the United States Mortgage & Trust Co. This consists of $5,000,000 4 1/2 per cent consolidated mortgage bonds of 1905-1908 of the Detroit Toledo & Ironton, and $3,001,000 preferred stock of the Ann Arbor and $2,190,000 common stock of the Ann Arbor.^¹⁸¹

November 25, 1908 train wreck between Hamburg – Lakeland, engines DT&I 107 (2-8-0) Geo. Crocker engineer and 45 (4-6-0) Billy Ryan engineer, engine crew of northbound train was killed.^¹⁸²

Dec. 11, 1908, Detroit Toledo & Ironton - A temporary injunction has been issued restraining the United States Mortgage & Trust Co. and the Knickerbocker Trust Co. from selling $5,000,000 Detroit Toledo & Ironton 4 1/2 per cent consolidated Mortgage bonds, and $3,000,100 Ann Arbor preferred stock and $2,190,000 Ann Arbor common stock. These securities were pledged under $5,500,000 notes of the Detroit Toledo & Ironton.

Building line from Owosso to 6-mile coal mile, 5/28/1909, and bridge over Shawnee River with 1/2 mile of track 9/1909.

The United States District Court in Detroit, MI, held hearing in Sept. 1909, after suit brought by the Knickerbocker Trust Company, of New York, trustee for bonds of the Detroit, Toledo and Ironton Railroad, to secure the bondholders rights in $9,357,000 of bonds. Contented that no foreclosure could be made on the $5,000,000 of 4.5% bonds pledged with U.S. Mortgage and Title Company. The reason was given that it represented the purchase price of the Ann Arbor RR in 1905, by the DT&I and under Michigan law one railway cannot acquire the stock of another. F. J. Lisman & Co., of New York, who, with other parties object to the management of the road as now carried on assert that the proper steps where not taken under the mortgage to have the $5,000,000 of bonds issued.^¹⁸³

A temporary injunction has been issued restraining the United States Mortgage & Trust Co. and the Knicker Trust Co. from selling $5,000,000 Detroit, Toledo & Ironton 5.5 percent consolidated mortgage bonds, and $3,000,100 Ann Arbor preferred stock and $2,190,000 Ann Arbor common stock. These securities were pledged under $5,500,000 notes of the DT&I.^¹⁸⁴

On December 1, 1908, the preferred and common stock of the Ann Arbor Railroad held by the DT&I, along the $5,500,000 5 per cent notes of the DT&I are to be sold at public auction. An agreement has been reached between the two interests controlling the DT&I collateral trust notes, which are secured by the Ann Arbor stock. The Ramsey committee will be allowed to choose successors to the three directors of the Ann Arbor retiring at the annual meeting September 19, 1908.

May 29, 1909 "Ann Arbor Car ferry No. 4" capsizes at Manistique due to uneven loading. No one is injured, but the boat will be out of service until September.

On Sept. 16, 1909, the court invalidated the purchase of the Ann Arbor by the DT&I RR. Sale of the Ann Arbor was completed Nov. 25, 1910, ending Eugene Zimmerman's dream of a consolidated DT&I - AA Railroads.

1909, trackage rights over Lake Shore & Michigan Southern Railway - Toledo to Alexis - Union Passenger Station 8.9 miles.

April 22, 1910, the Detroit, Toledo & Ironton RR no longer controlled Ann Arbor RR.

Nov. 25, 1910, Detroit, Toledo & Ironton stock of Ann Arbor RR sold to Joseph Ramsey, Jr. the only bidder, in behalf of the protective committee of these notes, for $2,500,000.

Detroit, Toledo & Ironton stock control of Ann Arbor RR sold on Nov. 25, 1910, to Newman Erb and Associates

November 26, 1910 the car ferry "Ann Arbor No.5" is launched. She's the largest car ferry on the Great Lakes at the time of her launch. She's also the first on the Lakes to use a seagate to keep out the high waves.

Ann Arbor Company - incorporated Jan. 5, 1911, under laws of Delaware, as holding company, to whom the Ann Arbor RR stock was transferred, for Ann Arbor Railroad Company by Newman Erb & Associates

Toledo, Ann. Arbor & North Michigan.-The Central Trust Co., which is trustee of the bonds authorized in January, 1910, amounting to $l0, 000,000, began an action last week in the District Court of Ohio for the discharge of the present Receiver and the appointment of a new receiver to represent its interests and the bondholders who have asked that this action he brought. The Receiver now in possession is Wellington R. Burt a son in-law of President J. M. Ashley of Toledo. The appointment was made in April, 1893, in a suit brought by the Craig Shipbuilding Co., of Toledo. Vice-President J. M. Ashley, Jr., speaking of the suit begun by the Central Trust Co., says that under an agreement in the mortgage proceedings for foreclosure can only begin six months after default has been declared, and the default only occurred in July last. Mr. Ashley also says that a reorganization committee which will conclude its labors about the middle of October has been planning a new organization which will doubtless be acceptable to all parties and to all interests. This Committee is practically in charge of affairs. It represents two-thirds of the bondholders and stockholders and will make friendly arrangements with the creditors. The cause of action will not accrue until after Jan 1, and by that time the new organization will probably be arranged.^¹⁸⁵

In April 1911, the Ann Arbor RR obtained the operating control of the Manistique and Lake Superior RR, through stock ownership. The Ann Arbor railroad through a ferry connection at Manistique, MI interchanges with the Manistique and Lake Superior railroad, the line being 45 miles in length, running to Shingleton and Doty near Lake Superior.

Ann Arbor RR running motor cars, May 6, 1911, from Owosso to Ann Arbor (until 1925), has Jackson, Ann Arbor and Chicago RR Bonds.

Schedule of passenger train service to allow twelve trains a day to pass through Ithaca, as follows;

This new schedule takes effect July 4th; the Ann Arbor has now completed its new schedule and put on both motor cars which double the road between Owosso and Cadillac daily. The summer night train has been restored so that now Ithaca has six trains each way every day. This service is unsurpassed on any road in the country and the Ann Arbor officials are to commend for their enterprise. Just one more thing is needed and the Herald feels sure that the officials of the road, after seeing the conditions existing at Ithaca cannot fail to be impressed with the fact that we are greatly in need of a new depot.

All motor trains run daily and not only make all regular stops but stop at nearly every crossroad in the populous sections. Trains 51 and 52 run daily including Sunday. Train 55 runs daily except Monday and 56 daily except Saturday.

May 31, 1915, Ann Arbor passenger train left the rails and turned over between Pittsfield and Milan, caused by spreading rails, no injuries.^¹⁸⁶

1915 - 28.82 acres leased to Pere Marquette RR, at Toledo, Ohio, 7.46 acres under lease to Manistee & North-Eastern RR, Bagnall Gravel Pit listed as $13,194.58 asset^¹⁸⁷.

November 8th, 1915, Ann Arbor Railroad posted a notice stating that, "commencing Monday November 22nd, passengers will be required to purchase tickets (were tickets offices are maintained) before boarding trains of this Company." Help your town by buying your ticket at the railroad station, which the company maintains for that purpose.

The Ann Arbor Boat Company has been incorporated on xxx 1916, to operate a ferry service between Frankfort, Michigan, the western terminus of the Ann Arbor RR across Lake Michigan to Manitowoc and Kewaunee, Wis., and Menominee and Manistique, Mich. All of the stock is owned by the Ann Arbor RR, which operates the property under long term lease at a rental, payable monthly, in excess of amounts required to meet interest and maturing principal of the 6% equipment bonds.

March 2, 1916, Judge Sessions in the United States District Court, at Detroit, Michigan, March 2, rendered a decision in the suit if the Ann Arbor RR to compel the state authorities of Michigan to suspend the 2-cent passenger fares and increases certain freight rates. The court denied the relief sought by the railroad. The railroad had set up the claim that 2-cent rate fixed by the legislature, and certain freight rates fixed by the state railroad commission, were confiscatory in that they forced the road to run at a loss or without adequate returns on its investment. The principal basis for the rejection of this claim by the court is found in the clause of the decision which places the blame for inadequacy of returns in large part upon interstate freight revenue and that therefore the state's rates are not at fault. Judge Sessions says in this clause:

"The evidence shows that much more than one-half of plaintiff's revenues are derived from the transportation of interstate freight and that a large part of such freight is low grade and inadequacy of returns of which complaint is made results from this traffic rather than from intrastate business of the road. Plaintiff has failed in its attempt to prove that the intrastate rates fixed by the Michigan statute and by orders of the state railroad commission are confiscatory."

The decision involved a number of issues relative to methods of computing values, etc. The court says, in the decision, that the value of the road is of necessity a most important factor, as are the income and the expenses. The real contest was on values and expenses and their apportionment and in this connection the court sustained, almost without exception, the contentions made by the attorney-general and his staff, despite the fact that the state's force was opposed by railroad experts of national repute. Among a number of questions over which there has always been much contention was that of present value. The railroad's contention was that its value was represented by the reproduction new value less the total of a flat percentage of annual depreciation. Judge Sessions admitted this to be frequently recognized by courts in many cases but held that it did not sufficiently recognized the lessening of value of equipment by reason of its becoming obsolete.

The state's objections to the method of determining land value of right of way, etc., by giving it the value of adjacent property irrespective of whether the adjacent property had buildings upon it, was also sustained. The court also held with the state on the methods of computing the value of right of way fencing, which the Railroad Company placed at $125,000 and the state at $54,000.

The court admitted the railroad's claims that its working capital was entitled to draw earnings by it declared very plainly that the railroad's expert, in arriving at the amount of the Ann Arbor's working capital, was "attempting to capitalize the debts of the company." This was done when the company's expert attempted to designate the "average excess of working liabilities over working assets, exclusive of cash on hand, fuel, material and supplies on hand" as the working capital. Cash on hand for special deposits to meet interest or other obligations was entitled to earning, the courts held.

The question of dividing trackage and right of way and other expenses figuring in joint use by passenger and freight traffic so as to get the proportions for each, was, the court said, one of the most difficult problems, but the railroad's plan, the so-called "locomotive ton mile ratio" was not sanctioned. This ratio is growing in favor with western roads, especially for use in litigation, the court said, but it was very obviously not a true measure. The plan assumes that the ton weight of the locomotive, exclusive of tender, multiplied by the number of miles traveled, represents the measure of use of track and roadbed in the service in which the locomotive is engaged. Judge Sessions held that it was obvious that this rule was unfair as it could hardly be shown that a light passenger train would not be nearly as wearing upon roadbed and track structure as a heavy locomotive pulling a long train of loaded freight cars.

In introducing his decision, Judge Sessions dwelt to some extent upon the question of what constituted a fair profit and determination was that the same percentage as is allowed by law as interest upon money was approximately sufficient profit to prevent a court from interfering with the railroad rate laws. Judge Sessions said: "The sole question to be determined in this case is whether, as applied to the plaintiffs’ railroad, the Michigan 2-cent fare law and certain freight rates established by the Michigan railroad commission are confiscatory. This question is mainly one of facts." The decision states:

"The power to control and regulate Public Utility Corporation is vested in the legislative and not in the judicial branch of the government. Courts can neither make rates nor review and revise those made by competent authority. Unless the lawmaking body so far transgresses fundamental law as to commit a legislative theft, the courts may not interfere. With reference to permitted returns upon invested capital, the margins between full and complete adequacy and confiscation may be quite wide. Hence, in a doubtful case, court may not substitute its judgment for that of the legislature. Hence, also, the settled rule that to warrant a decree declaring a state statute invalids the proof that such statute necessarily results in confiscation must be clear, satisfactory and convincing. Precisely what the just compensation without which the federal constitution forbids the taking of property for public use is seldom easy to determine.

"It cannot be measured by any yardstick of mathematical certainty. It must vary with the varying conditions and circumstances of each particular problem. Rates, which with efficient and economical management, yield a return equal to that received in other business ventures of similar character and attended with like risks, can never be adjudged to be confiscatory, but the rate-making power is confined to such narrow limits."

The courts ruled against the railroad by refusing to grant an injunction for which the Ann Arbor had applied. Judge Sessions refused to grant it, declaring against the practice of granting injunctions to prevent continuance of an act already in force, unless some immediate danger could be shown. He advised the Ann Arbor to bring suit in the ordinary way, placing the merits of the rates before the court.

October 15, 1916, a fire at Mauke Lumber Company destroyed two large sheds owned by the Ann Arbor Company, a portion in another shed owned by Mr. Mauk. These sheds were located near various switching track of The Toledo Terminal Railroad Company and other switching tracks of the Ann Arbor Railroad Company (Elm Street yard).^¹⁸⁸

1917 Ann Arbor Company dissolved; the Owosso to 6-Mile Creek - 7.26 miles (New Haven Mine) branch first listed, 44 tugboats listed in equipment.

On December 31, 1917, the operating control of the company was, pursuant to the proclamation of the President of the United States, taken over by Hon. W. G. McAdoo, Director General of the Railroads, as a war measure, which control continued until March 2, 1920, when the Railroad Company resumed full control under the provisions of the Federal Transportation Act of 1920.

The Arcadia & Betsey River received the permission to abandoned operations between Henry and Copemish on October 25, 1918 Michigan Railroad Commission order D-1277 and did so on Nov. 30, 1918. The rails and fastenings on this section were the property of the Ann Arbor RR, to whom they were returned upon abandonment of this section of line in 1918.

During the 1920's the Wheeling & Lake Erie RR obtained running rights of the Ann Arbor RR, from Manhattan Junction to reach the Temperance Yard of the Detroit, Toledo & Ironton RR, also rights were obtained to reach the Michigan Central's North Yard and the Pere Marquette's Ottawa Yard.

May 23, 1920 PRR begins passenger service to Detroit (Fort Street) via Ann Arbor Railroad to Alexis Jct., Pere Marquette to Romulus, and Wabash to Delray and ends service over Michigan Central between Toledo and Detroit; Clevelander/Buckeye Limited restored; Cincinnati Limited established westbound. (Guide)

Waste Merchants' Association of New York v. Director General, Ann Arbor R. R. Co. et al.

On complaint that carriers serving tariff-named piers and stations in New York and Brooklyn, N.Y., failed to render the service of loading carload shipments of waste-paper stock, provided for under the rates in their tariffs, thereby compelling complainant's members to furnish such service by means of their own employees, and that in consequence rates were exacted which were in violation of section 1, 2, and 3, Held, that the variance of the practice from the tariff undertaking was as much in the interest of complainant's members as of defendants; that the rates collected were not unreasonable, unjustly discriminatory, or unduly prejudicial for the transportation service rendered.^¹⁸⁹

Waste Merchants' Association of New York v. Director General, Ann Arbor R. R. Co. et al.

Petition for mandamus to compel the commission to award reparation dismissed.^¹⁹⁰

Jan. 15, 1921, the Interstate Commerce Commission has approved a loan of $400,000 to the Ann Arbor Railroad Co. to aid the carrier in meeting maturing indebtedness aggregating $620,000. The company itself is required to finance $220,000 to meet the loan of the government.

On August 7, 1921, there was operated on the Ann Arbor RR from Owosso, Mich., to Toledo, Ohio, a freight train said to be the longest ever operated in the state of Michigan and which is believed to be one of the longest trains ever operated on a continuous trip of 104 miles and made up of mixed equipment. This train left Owosso at 6:15 AM with 53 loads and 97 empties, 3,932 tons, and arrived at Toledo at 4 PM with 53 loads and 98 empties, 3951 tons. This train was handled by one locomotive, Santa Fe type, 70,000 tractive efforts, equipped with Duplex stoker, with the exception of having a pusher out of Owosso yard for distance of four miles, which is the regular operation. The entire trip was made without a mishap of any character. The ruling grade over which this train was handled ranges from 0.54 to 0.43 per cent for a distance of two miles. There are many "dips" though which this train was handled successfully without a break in two. One of the features of the trip was the testing of a front-end exhaust pipe designed by J. E. Osmer, superintendent of motive power of the Ann Arbor RR. One of the main features claimed for this exhaust pipe is the saving of fuel and water. The records indicate that on this trip there were eighteen tons on coal consumed.

Waste Merchants' Association of New York v. Director General, Ann Arbor R. R. Co. et al.

Decision of lower court reversed with directions to issue the writ prayed for, the court holding that a shipper was entitled to mandamus to compel the commission to make an allowance, where the commission refused to award compensation for service rendered to the carriers, because it misconceived the effect of the statute requiring such compensation, as that statue had been interpreted by the Supreme Court.^¹⁹¹

Waste Merchants' Association of New York v. Director General, Ann Arbor R. R. Co. et al.

Decision in 277 Fed. 538 reversed, the court holding that mandamus will not lie to compel the commission to set aside a decision upon the merits and decide the matter in another specified way.^¹⁹²

Apr. 26, 1922 PRR and Ann Arbor Railroad agree to operate parallel lines between Galena Street, Toledo, and Alexis Jct. as a single double-track railroad. (Church)

1922 a contract has been negotiated with the Pennsylvania RR Co. for use of track by that company at Toledo, to Alexis, a distance of 4.37 miles, and the construction of an additional track for joint use, the funds for and the construction of an additional track for joint use, the funds for such construction estimated cost $560,000 are provided for by that company.

May 23, 1922 PRR trains begin operating Toledo-Detroit via temporary trackage rights over Ann Arbor Railroad, Pere Marquette, and Wabash; NYC is furious with this invasion of its territory and refuses to cooperate with PRR as it had during the "Community of Interest" period. (C&C, WWA 47/47)

A decision has been handled down in the court of appeals of the state of Ohio sustaining the contention of the Ann Arbor Railroad that the reorganization of the Pere Marquette Ry., five years ago automatically terminated the contract for the use of the Ann Arbor terminal at Toledo, Ohio, by the Pere Marquette and requiring the latter road to enter into a new contract, retroactive five years.

March 10, 1923, lengthening operation of car ferry No. 3 of the Ann Arbor RR, Railway Review article

Due to the increased tonnage now handled by the Detroit, Toledo and Ironton Railroad to the northwest and southwest, a new train has been inaugurated to operate from Detroit to Sand Creek. This train is known as No. 102, leaving Detroit daily (except Sunday) at 7 a. m. arriving Dundee to meet Ann Arbor Railroad connection at 10 a. m. and Sand Creek 12 noon, connecting at this point with Wabash fast train for St. Louis.^¹⁹³

Ann Arbor Car Ferry No. 3, operated by the Ann Arbor Railroad on Lake Michigan, between Frankfort, Mich., and Manitowoc, Wis., just recently left the plant of the Manitowoc Shipbuilding Corporation, where the vessel received extensive alterations. The ship was placed in the large steel floating dry-dock, cut in two, lengthened 48 feet, giving it an increase in car carrying capacity of 33 per cent. The keel length of the vessel is now 307 feet. New crew's quarters were fitted on the upper decking a new deck house, and the work involved also increased the passenger carrying capacity to a considerable extent.

During the lengthening operation, the old propelling machinery, consisting of two horizontal compound engines, and two natural draft Scotch boilers, were removed, and an entire new installation of modern propelling machinery was made. This consisted of two triple expansion engines and two Scotch boilers operated under forced draft. The engines are of the vertical, three cylinders, and direct-acting type, directly connected to out board turning propellers. As is usual on Great Lakes service, the engines are of the jet condensing type, both exhausting into an independent condenser, with a vertical double acting air pump of sufficient capacity to maintain a working vacuum of 24 inches, with both main engines at full power.

The cylinders are 15.5, 26 and 44 inches diameter, with a piston stroke of 26 inches, and each engine is capable of developing 700 horsepower at 110 revolutions per minute. The handling gear of both engines is brought together at a central station between the engines on the lower engine room floor, so that one operator can handle both.

The propellers are of cast steel, and of the four-bladed solid type, of sufficient weight to stand up under the severe ice conditions of winter service.

Two Scotch boilers supply steam at a working pressure of 100 lbs. per square inch; 13-ft. diameter by 11 ft. 6 ins. long each fitted with two corrugated furnaces 48 ins., inside diameter with separate combustion chambers.

The boilers are operated under the "Howden" system of forced draft, the necessary air being supplied by a large engine driven fan, situated in the engine room, and as usual, with this system of draft, the air is highly heated before delivery to the ash pits.

The feed water to the boilers is heated to 210 degrees F. before entering the boilers, by being passed through a large heater of the Reilly Type. The ashes are disposed of through two ash guns operating with high-pressure water jets, and discharge overboard, clear of the ship.

The vessel is fitted with very complete equipment of modern pumps, including ballast, feed, general service, sanitary and fresh water, and is electrically lighted throughout by means of two 10-kw generating sets.

On the trip the Ann Arbor carferry No. 3 made the trip from Manitowoc to Frankfort, with 26 cars aboard, at a speed exceeding 13 miles per hour, the average revolutions of the main engines being 105 per minutes.

The Ann Arbor Railroad initiated the first lake car ferry movement where sea operation was contemplated, known to transportation. They conceived the idea in 1890, and at that time they constructed two wooden car ferries Nos. 1 and 2. These vessels had a carrying capacity of approximately 24 cars, the cars being generally about 30 ft. The No. 1 and No. 2 were placed in commission in November and December 1892. The first steel car ferry, now known as the No. 3, was constructed and placed in operation 1898 and in 1906 the No. 4 was put into service. The two wooden car ferries were then retired. In 1910, Car Ferry No. 5 was built, and during 1917 Ferry No. 6 was placed in commission. These vessels are so constructed and powered as to be able to navigate without any difficulty during the winter as well as the summer months.

J. S., newly appointed president of the Ann Arbor Railroad and head of J. S. Bache & Co., New York financiers, has announced that negotiations are under way for the sale of the road but declines to state whom the possible purchaser might be.

Ann Arbor No. 7 was launched December 30, 1924 at Manitowoc. The event was attended by a number of Green Bay shippers and Ann Arbor president Newman Erb. Five thousand people watched Miss Jane Reynolds, daughter of Marine superintendent R. H. Reynolds, christen No. 7. An independent Ann Arbor Railroad would be short lived. Investor Jules S. Bache began acquiring Ann Arbor common stock and became Ann Arbor's new president shortly after Erb's death in early 1925. Walter P. Chrysler was elected to the directorate and finally Wabash purchased the Ann Arbor.^¹⁹⁴

Jan. 1925 B&O, NYC and Van Sweringens make joint proposal to ICC for four-system East; NYC to get LV, NYO&W and most of BR&P; PRR to get N&W, Alton and Grand Trunk Western; B&O to get Reading, WM, Monon, Ann Arbor, Buffalo & Susquehanna, DT&I, Cincinnati, Indianapolis & Western, and Wabash east of the Mississippi; Van Sweringens to get the Virginian, DL&W and B&LE in addition to current holdings; all four to jointly control the C&EI, Wheeling & Lake Erie, D&H, L&HR, L&NE; PRR is opposed, particularly over the loss of the LV, which it considers in its traditional sphere of influence; ICC refuses to adopt plan. (verify date and details)

May 19, 1925 Wabash Railway acquires control of Ann Arbor Railroad. (Moody’s)

The Wabash Railway in May 1925 had purchased 13,000 shares of the 13,000 shares of the 72,500 shares of Ann Arbor RR stock, of both preferred and common stock. The Ann Arbor stock is divided 40,000 shares of preferred and 32,500 shares of common.

The Ann Arbor stock was purchased from Jules H. Bache, at $67.50 for preferred and $40.00 for common stock.

President J. E. Taussing of the Wabash Railway announced that they had purchased the Ann Arbor RR, subject to approval of the Interstate Commerce Commission.

November 7, 1925 The ICC approves the takeover of the Ann Arbor Railroad by the Wabash.

The Interstate Commerce Commission has authorized the Wabash Railway November 7, 1925, to acquire control of Ann Arbor RR. The Wabash will acquire 10,929 shares of preferred stock and 13,352 shares of common stock. This stock, together with the present holdings of the Wabash, will constitute a controlling stock interest. On June 4, 1925, Wabash held 99.44% of the outstanding stock of Ann Arbor RR Company?

1925 Pennsylvania, Ohio & Detroit Railroad builds one track along Ann Arbor Railroad (built on old Toledo & State Line Railroad right-of-way) between Toledo and Alexis (4.45 miles) and operates as one double-track railroad. (Check Church)

1927 the Michigan Electric Railway - removed trackage between Corunna and Owosso on Corunna Avenue.

Feb. 1, 1927 Banker F.J. Lisman issues favorable analysis of L.F. Loree's "Fifth System", projecting $350 million a year gross earnings on capital of $1.18 billion; system is to include D&H, LV, WM, BR&P, Wabash, P&WV, Ann Arbor, Green Bay & Western and Minneapolis & St. Louis, as well as New York, Pittsburgh & Chicago Railroad. (NYT)

Car ferries handling loaded cars also experienced inflated figures which climbed from 50,390 forty-ton cars in 1924 to 60,861 in 1927, while 1926's figure of 64,358 was higher; the dip was again related to Ford's model changeover. Ann Arbor had organized a subsidiary, Ann Arbor Boat Company, in 1916. It was a Michigan Corporation, which operated its ferry fleet under a long-term lease with monthly rentals; securities included a first mortgage on ferries No. 6 and No. 7, a combined value of $1,516,000. Ann Arbor's 1928 auto tonnage accounted for more than 107,000 tons of revenue tonnage of 3,337,929 for the year. The brisk trade brought about a 1926 order for ferry WABASH built about twenty feet longer (366 feet) than No. 7 Boat of 1925. Wabash sported a unique covered forecastle, which was distinction of her late design. The new boat was ready for service in late June 1927. Competitor Pere Marquette launched two new ferries in August and November of 1929. Namely CITY OF SAGINAW and CITY OF FLINT, which inappropriately steamed straight into the great depression, courtesy of their new turbo-electric drives.^¹⁹⁵

The Ann Arbor Railroad was awarded the National Safety Council's Railroad Safety trophy for group 'F' 2.81 million man-hours, accident reduction rate of 90.91 percent since 1923.^¹⁹⁶

4-6-1923 COMPANY TO ERCT NEW ROUND HOUSE FIRST, THEN NEW MACHINE SHOP, ON CALEDONIA SITE

Purchase New Engines, Will Enlarge Ferry System, to Handle Big Through Tonnage to Northwest

The Ann Arbor Railroad company will build a new round-house, first, then a new machine shop, on the 17 acre site between Owosso and Corunna, donated by the business interest of the city some years ago. Just when these will be built, is not yet certain, but it will be in the near future.

This was the statement of Newman Erb, president of the road, who passed through here late Thursday afternoon after a trip of inspection to the northern end of the line. With Mr. Erb were E. F. Blomeyer, vice president and general manager of the road, and several other officials, including S. E. Summerfield of New York, a heavy stockholder and member of the board of directors. George E. Carr, trainmaster, joined the party here and went to Toledo with the officials.

Mr. Erb also confirmed the Flint story that the Ann Arbor would go into Flint before long, and that if it is unable to come to terms with the Grand Trunk railroad for the use of its tracks between Durand and Flint, it will build a new line, paralleling the Grand Trunk main line. There is no chance for the proposed Flint branch to start from Owosso, Mr. Erb said, because of the increased distance.

“From Durand to Flint is approximately 17 miles” said Mr. Erb. “From Owosso to Flint is between 25 and 23 miles. There are two things to consider. First, that of the original cost of building the road, and second, the cost of operation, afterwards. It would cost nearly twice as much to build from Owosso to Flint and nearly twice as much to operate after it was built.

“in these days of low revenues and high wages, when no railroad is paying its stockholders any dividends, we must conserve every dollar.”

Mr. Erb said that the motive of the company in seeking entrance to Flint was that the enormous tonnage in and out of Flint might be secured for the Ann Arbor, which he said is the logical road to connect the Toledo gateway with the northwest.

“Flint,” said Mr. Erb, “uses enormous quantities of raw materials, steel and coal, that must all come through the Toledo gateway. She also puts an enormous tonnage of finished products for the east and west. The Ann Arbor road, with a Flint branch, could connect Flint directly with both the Toledo gateway and the northwest.

“Our ferry system has been enlarged and we are planning on enlarging our dock and terminal facilities at Frankfort and at Manitowoc, Wis. As a matter of fact it is our cross lake business that keeps the road going. If it were not for this business, we would have to tear up the rails and quit this business.

Mr. Erb cited the fact that the Chicago, Burlington & Quincy railroad, with the Great Northern and North Pacific, contemplated the acquisition of lines to Great Lakes reached by the Ann Arbor, as proof of the soundness of the company’s theory that the big railroad business of the future lies in the transportation of through tonnage from manufacturing centers, and that the Ann Arbor railroad is ideally located for this. Big shippers are now seeking transportation over roads that will permit them to avoid congestion and delay in the big centers, particularly Chicago. Shipment over the Ann Arbor will do just that.

The new branch line to Flint will not affect Owosso directly, Mr. Erb said, but it will mean that, as the business of the road grows, it will give employment to more men and with division headquarters here, Owosso will benefit.

“We have needed the new shops badly for years and have been very anxious to build them, but things have not broken right for us.

Been made, including the laying of 85-pound steel rails and the purchase of two new ferries, as well as the purchase of new engines and rolling stock have had to be made out of bond issues.

“But we must have a new round house. The present building is far too small. We plan to build a new one as soon as we can on the site given us some years ago, east of the city. Then a new machine shop will be built. The large site will give us ample room, out there, and the removal of the present building will give us more yard capacity here.

Mr. Erb said that the company had just purchased five new engines, all larger than now in service on the road. This makes a total of 52 engines the company will have.

“While numerically this purchase increases our engine capacity ten per cent, it will increase our tonnage capacity nearly 20 per cent.^¹⁹⁷

Feb. 19, 1929 B&O files with ICC to control 10 railroads to create 13,814-mile system, including Reading, CNJ, Western Maryland, L&HR, BR&P, DT&I, Wabash, Ann Arbor, and Chicago, Indianapolis & Louisville. (NYT)

5-17-1929 when the last car of the Lansing - Owosso line of the Michigan Electric Railways pulls out of Owosso tonight, it will be the last of the interurban for Owosso.^¹⁹⁸

9-1-1929 Work on tearing up the tracks of the Michigan Electric Railway continues this week. About a mile of track near the Rennington Road has been torn up.^¹⁹⁹

Nov. 1929.Fire in Paint shop and coach repair shop of the Ann Arbor Railroad. The loss was estimated at $100,000.

Feb. 20, 1930 B&O becomes first Trunk Line to accept ICC's consolidation plan; agrees to submit revised plan without Wabash and Ann Arbor in line with ICC's plan. (NYT)

June 10, 1930, The Federal Radio Commission canceled the radio transmitting station licenses for the Ann Arbor and Pere Marquette Railroads, on the grounds that the transmitting stations were being used for private and not public commutation use.

Jan. 2, 1931 Presidents of PRR, NYC, B&O and C&O/Nickel Plate meet at Pres. Atterbury's office; agree to appoint a committee to work with Ivy Lee on publicity for their "Four-Party Plan" of voluntary railroad consolidation; Presidents sign a letter drafted by Lee submitting plan to ICC; PRR is allowed to keep the Wabash; Detroit, Toledo & Ironton; and N&W and is to retain certain running rights over the Lehigh Valley, which is assigned to the C&O; NYC gets the DL&W, P&LE, NYO&W and connection with the Virginian at Deepwater; B&O gets Ann Arbor, Reading, CNJ, BR&P, Western Maryland, Monon, Buffalo & Susquehanna, Alton and L&HR; C&O gets Hocking Valley, Erie, NKP, B&LE, Pere Marquette, W&LE, C&EI, LV, and P&WV; joint control to be exercised over L&NE, D&H, Monongahela, Montour, PC&Y, EJ&E, and AC&Y; PRR and C&O are to jointly control the Virginian; Pres. Willard, who is facing $55 million in debt maturities in 1932, also raises possibility of negotiating a peaceful wage cut. (Wheeler)

Oct. 25, 1931 Assistant to the VP in Charge of Operations Walter S. Franklin named President of Wabash Railway and Ann Arbor Railroad at St. Louis, following death of William H. Williams. (NYT)

Dec. 4, 1931 Ann Arbor Railroad enters receivership as result of Wabash bankruptcy. (Moodys)

Justice Hahn appointed the same receivers for the Wabash the Ann Arbor went into receivership on December 4, 1931, three days after the parent company, the Wabash, and William S. Franklin and Frank C. Nicodemus, in the federal district court at Toledo, Ohio, On Dec. 4. The Appointment followed the filing of a petition by the Jennison - Wright Company, alleging indebtedness of $17,169, which the road was unable to pay. Interest payments totaling approximately $436,000, due Oct. 31, are unpaid. The company at the end of 1930 had funded debt of $13,012,439 and capital stock of $7,250,000. Its fixed charges in that year totaled $448,870.

In 1932, the receivers for Wabash/Ann Arbor bankruptcy to the Reconstruction Finance Corp. for additional loan of $365,243 for interest requirements and principal payments on equipment obligations.

On April 13, 1932, the Interstate Commission approved a loan of $634,757 to the Ann Arbor RR from the Reconstruction Finance Corporation. The loan is to be advanced over an of period of three years.

March 1932, the joint receivers have applied to the Reconstruction Finance Corporation for an extension for five years of the $600,000 of their loan, after making a partial payment of $34,757.

April 1932, Reconstruction Finance Corporation approved a three-year extension of $600,000 of the receiver’s loan. Which is to be reduced from $634,757 by a cash payment?

Ann Arbor No. 6 eased into Kewaunee Friday, February 5^th, 1937, with a special load. It had to be an extraordinary morning for a small group of on lookers at Kewaunee Ferry Yard that gray day. Green Bay & Western No. 401 lumbered ashore backward at 8:45 A. M., as Grover Byers, Frank Halliday, E. V. Johnson, and AA's O. T. Larson observed GB&W first large engine as it was placed securely onto Wisconsin rails. On the 7^th, No. 402 was unloaded, again from Ann Arbor No. 6, and went "dead in Train" to Norwood, Wisconsin.^²⁰⁰

July 23, 1938, contracts have awarded the Ross & White Company of Chicago, ILL., for construction of automatic, electric, direct engine coalers East Switch, Iowa and Owosso, MI.

While the Green Bay & Western prospered, a competitor in Cross Lake Traffic collapsed. Hard luck bedeviled Wisconsin & Michigan, finally gave up the fight June 30, 1938.^²⁰¹

Dec. 1939, joint receivers of this railroad, pursuant to order of the U.S. District Court, on Dec. 22, paid the balance of outstanding receiver certificates held by the Reconstruction Finance Corporation originally issued in 1932 to evidence a loan of $634,757 from that corporation. It was announcing that with this payment all such certificates have been retired, including all outstanding equipment trust obligations of the company.

July 1942, the National Council of Railway Patrolmen's Unions, AF OF L., as represents for Ann Arbor Railroad patrolmen, were including sergeants and bridge guards.

July 1942, the ICC Div. 4, has granted the Ann Arbor Railroad a 'grandfather clause' certificate under Part III of the I.C.A. covering operations as a common carrier by water in the transportation of passengers and vehicles loaded or empty when accompanied by drivers between the Lake Michigan ports. The ferry operations in so far as they involve the transportation of railroad cars, were found to be exempt from Part III.

Receivership proceedings of the Ann Arbor were terminated, and Norman B. Pitcairn and Frank C. Nicodemus, Jr., released as receivers, by an order entered at Toledo, Ohio, on December 31, 1942, by the United States district court for the western division of the Western district of Ohio, which directed the surrender to the company of all its properties for the resumption of operation as of January 1. The Ann Arbor is the third class I carrier to wind up its equity proceeding during 1942, the Norfolk & Southern and the Wabash having been previously restored to corporate control.

Feb. 5, 1944, the Pere Marquette RR, filed for abandonment of the Harrison to Clare line.

July 29, 1944, forty passenger on the Toledo bound Ann Arbor Railroad train had a narrow escape today when a three-car train stuck a gasoline truck on the outskirts of Ann Arbor and immediately burst into flame. Soldiers and sailors drilling on Ferry Field helped extinguish the fire at State St. crossing of the railroad.

In 1944, the commission ruled that the passenger must be continued until six months after official termination of World War II.^²⁰²

President Truman on June 23 issued an Executive Order creating an emergency board to investigate a wage and rules dispute between the Grand Trunk Western, Chesapeake & Ohio, Wabash and Ann Arbor and employees in their Lake Michigan car-ferry services who are represented by the National Maritime Union. The railroads involved among those which are under federal control and operation by the Secretary of the Army; and in that connection the Executive Order creating the board said that nothing in it "shall be construed to derogate the authority of the Secretary of the Army" under the seizure order.

The members of the board are Judge R.G. Simons of the Supreme Court of Nebraska, J.L. Miller of Washington, D.C., and Judge T.F. Gallagher of the Supreme Court of Minnesota.

Acting upon petitions wherein the parties reported that they had reached an agreement "substantially in compliance" with-it July 26, 1945, order in No. 29030 and the related No. 29045, Division 2 on the Interstate Commerce Commission has vacated that order which related to compensation received by the Chicago & North Western for terminal facilities and switching services provided at Manitowoc, Wis., in connection with the car-ferry operations of the Pere Marquette and Ann Arbor. The vacation of the order is "without prejudice to the right of any party to these proceedings to petition for reinstatement."

As noted in the Railway Age of 18 August, 1945, page 314, the proceedings grew out of a complaint filed by the Chicago & North Western which protested that it was receiving inadequate compensation under unpublished arrangements for use of its Manitowoc facilities and switching services performed there for the car-ferry lines. Among other things, this complainant asked the commission to require the ferry roads to establish joint rates with it on all traffic to and from Manitowoc; but the ferry roads filed a cross-complaint asserting that the failure of the Chicago & North Western to publish switching charges applicable in connection with their operations was unreasonable, and that the North Western's joint-rate proposal was an attempt to eliminate them as originating carriers at Manitowoc.

The commission rejected the joint-rate proposal, and its order required the use of the Chicago & North Western terminal faculties to the ferry lines on the basis of charges published in tariffs. Which charges the committee said it would prescribe, after hearing parties did not reach some such agreement as that which brought the vacation order.

Railway car-ferry operations on the Great Lakes and rail movement of coal to the lake ports for transshipment via water were seriously hampered this week by a strike of employees of some of the lake carriers, members of the National Maritime Union. Effective August 15, the strike resulted in immediate disruption of car ferry service on Lake Michigan and on the St. Clair River at Detroit, Mich. However, on August 16, the Lake Michigan operations were resumed. The following day seamen employed by the Grand Trunk Western in its car-ferry operation between Muskegon, Mich., and Milwaukee, Wis., again walked out and had not returned to work on August 21. The G.T.W. ferry is also used by the Pennsylvania Railroad between Muskegon and Milwaukee.

The Ann Arbor ferries between Frankfort, Mich., and Manitowoc, Wis., Kewaunee, Marinette and Manistique, Mich., and the Pere Marquette ferries between Ludington, Mich., and Milwaukee, Manitowoc and Kewaunee all been strike-bound for the second time on August 18, and to August 21, had not resumed operation.

On the St. Clair river, the Wabash and Pere Marquette car ferries between Detroit and Windsor, Ont., ceased operation on August 15 and had not returned to service to August 21. These roads were using detour arrangements via the Michigan Central's Detroit tunnel. The Canadian National, which also operates car ferries in this service, has so far been unaffected by this strike as its employees are under the jurisdiction of Canadian authorities. The Pere Marquette also detoured some freight via the Grand Trunk's tunnel between Port Huron, Mich., and Sarnia, Ont., for movement over the PM's Sarnia-Bleheim, Ont. - branch.

On Lake Erie, the New York Central reports that its coal dumpings at Toledo, Ohio, have been effected and describes the port as under an embargo and permit system. However, up to August 21, there had been no formal railroad embargoes placed except at South Chicago, Ill., on August 15, which was canceled on August 10 and Ashtabula, Ohio, on August 19 and 20. Movements of ore from Ashtabula were nearly normal up to August 21. The Pennsylvania reported that up to that date its movement of coal via Sandusky, Ohio, was normal. However, on August 19, this road issued an embargo against all traffic routed via the Penn-Ontario car ferry between Ashtabula, Ohio, and Port Burtwell, Ont. This embargo was followed by a similar one affecting southbound movement via this route, placed by the Canadian Pacific the following day.

According to responsible railway officers, no dispute exists between the railways and the National Maritime Union and no demands have been served on the roads. Apparently this view is also held by the National Mediation Board, as Frank P. Douglass, its chairman, sent the following telegram to Philip Murray, president of the C. I. O., on August 19:

"Strike of marine employees on the Great Lakes and St. Claire River in progress for the last week has resulted in employees of the Pere Marquette, Wabash, Ann Arbor and Grand Trunk Western railroads being called out by the National Maritime Union. the Maritime Union now represents and has contracts for certain marine employees with above four railways which the organization has an obligation to protect, until changed in accordance with the provisions of the Railway Labor Act, which covers marine employees on boats operated by railroad companies. We are informed that no notice has been served by the employees as required by Section 6 of the act for changes in working conditions. If any dispute exists, it should be progressed under provisions of the act, which provides for peaceful and orderly methods and which must be utilized without stoppage of work. The Mediation Board respectfully urges you immediately to cancel the strike on the above railroad-operated boats and that the National Maritime Union is directed to protect the provisions of its existing agreements."

Operation of railroad car ferries on Lake Michigan and in the St. Claire River at Detroit was resumed on August 25 and 26 following an agreement between the striking members of the National Maritime Union and the four railroads affected. According to N.M.U. announcement, the strike settlement resulted from an agreement by the railways that there would be no discrimination against the strikers and that the pre-strike rights of the striking employees would remain unaffected.

Settlement of the strike was expected to pave the way for a discussion of the status of the car ferry workers who appear to be covered both by the Railway Labor Act, as railway employees, and by Great Lakes marine regulations, as seamen on the Lakes. According to P. D. Harvey, a representative of the National Mediation Board, the railways have agreed to open talks in 30 days on the question of a 40 hours week and other concessions for these workers.

The Wabash ferries at Detroit resumed operation a 3 P.M., August 25, and were followed shortly by those of the Pere Marquette. On Lake Michigan both the P.M. and the Grand Trunk Western reported their ferries in normal operation by August 26, while those of the Ann Arbor returned to service at noon of that day.

August 1945, Unless the Chicago & North Western, Pere Marquette and Ann Arbor agree upon terms by which the first-named road is compensated by the other two for their joint use of its terminal facilities at Manitowoc, Wis., and the terminal switching service it performs for them, and publishes tariffs accordingly, the Interstate Commerce Commission, after hearing, will prescribe appropriate charges, according to a report and order by Division 2 in the No, 29030 and related proceedings.

The case grew out of a complaint to the commission by the C. & N. W. that its revenue for terminal service performed at Manitowoc in connection with the car ferry operations of the other two railroads on Lake Michigan was inadequate. The ferry lines have no tracks or other physical facilities for handling cars at that point and for many years their vessels have used C&NW ferry slips and that road has used its crews and power to move cars to and from the decks of the ferries and to and from its freight house, team tracks and industrial sidings, being compensated therefor under arrangements that have been modified from time to time, but have not been published in a tariff, except for a limited amount of business handled by joint rates.

In 1943 the C&NW served notice on the ferry lines that the charge of $7.50 per car on carload freight and $4.05 per car on L.C.L. received by it for its switching and terminal service, on traffic load to Manitowoc, was unsatisfactory. It asked the commission to require the ferry roads and their eastern and southern connection to establish joint rates with it on traffic to and from Manitowoc not subject to such rates, by the ferry roads filed a case complaint with the commission asserting that the failure of the C&NW to publish switching charges applying to its service in connection with their ferry operations was unreasonable, and that it was unlawfully attempting to eliminate them as originating carriers at Manitowoc. Local shippers in general supported the position of the ferry lines, arguing that their advantageous location the border between Official and Western territories would be jeopardized if those carriers should cease to function at Manitowoc as originating and terminating lines as result of the division arrangement, under which they would be succeeded in such respects by the North Western.

In a proposed report, Examiner Williams A. Disque, as noted in Railway Age of October 28, 1944, page 665, recommended that the commission should find that the failure of the ferry lines to agree to publication of joint rates to and from Manitowoc was not unreasonable, and that it should prescribe switching charges to be published in a tariff for absorption by the ferry lines such charges to substantially higher than those formerly paid under the agreement which the C&NW terminated.

In effect, the division followed the examiner's recommendation with respect to the joint rate proposal, but not where the prescription of a terminal charge was proposed. The division said it was unable to find that joint rates are necessary as there is no public demand for them, and shippers' would be best promoted by continuance of direct service at Manitowoc by the ferry lines. On the other hand, the ferry lines' proposal that C&NW should receive the same switching charge from them as from the SOO Line, with which the North Western has a reciprocal switching arrangement at that point, did not impress the division favorably, since the element of reciprocity world be absent in the case of the ferry lines because they maintain no tracks or motive power there.

Basing its action of section 3(5) of the Interstate commerce Act, which, it observed, affords a shipper as well as a carrier a remedy in instances where the use of terminals is involved, the division held that it could properly require the continued joint use by the ferry lines of the North Western's Manitowoc terminal facilities, inasmuch as such use will be practicable without impairing that line's ability to handle its own business. Tariffs should be published covering the terminal changes agreed on, it pointed out, and such compensation should cover not only the ferry lines' use of the C&NW the freight house and team tracks by the terminal switching service which that company performs for them.

The division's report was accompanied by an order requiring use of the C&NW terminals at Manitowoc by the ferry lines. It was indicated that Commissioner Splawn and Chairman Rogers.

In addition to the controversy as to whether the ferry lines should continue joint use of the Manitowoc facilities, the proceedings also involved complaints by the C&NW that its divisions from existing joint rates with those applying to cheese and eggs are inadequate, but the division did not find that the evidence supported that claim.

23 ALLEY, John Bassett, a Representative from Massachusetts; born in Lynn, Essex County, Mass., January 7, 1817; attended the common schools; at the age of fourteen was apprenticed as a shoemaker, but was released at nineteen; moved to Cincinnati, Ohio, in 1836; freighted merchandise up and down the Mississippi River; moved to Lynn, Mass., in 1838 and entered the shoe manufacturing business; established a hide and leather house in Boston in 1847; member of the first board of aldermen of Lynn in 1850; member of the Governor’s council 1847-1851; served in the State senate in 1852; member of the constitutional convention of 1853; elected as a Republican to the Thirty-sixth and to the three succeeding Congresses (March 4, 1859-March 3, 1867); chairman, Committee on the Post Office and Post Roads (Thirty-eighth and Thirty-ninth Congresses); was not a candidate for re-nomination in 1866; became connected with the Union Pacific Railroad; abandoned active business pursuits in 1886 and lived in retirement until his death in West Newton, Mass., January 19, 1896; interment in Pine Grove Cemetery, Lynn, Mass.

35 Ibid., p. 14, 15

Ibid., p. 15

Ibid, p. 15, Charles S. Ashley said the actual purchase price was only $80,000. See Montana, p. 199

61 The earliest reference to this is in a prospectus of the Toledo, Ann Arbor & Grand Trunk issued in 1881, a copy of which may be found in the Transportation Library at the University of Michigan

65 The proposed termini were the Ohio state line and Owosso. See the report of the Commissioner of Railroads for the State of Michigan for 1872, p. 341, and Riggs, p. 18. A meeting was held in 1876 to raise funds for the section above Ann Arbor. Toledo Blade, January 29, 1876

66 The articles were filed October 16, 1882. See p. XXXVII of the Eleventh Annual Report of the Commissioner for the State of Michigan. The line is given as running from South Lyon to St. Louis, 87 miles, and the stock issue is to be $1,740,000

92 Toledo Blade, January 4, 1886, and January 6, 1886. Reports that dynamite was used, either to blow up the right of way, or to remove a derailed car full of stone appear in Riggs, p. 41, and in the Owosso Argus-Press, June 29, 1936, but are substantiated in the contemporary accounts.

134 Ibid. pp. 10-11. Some right of way had been purchased. Another projected tributary, the Chippewa Valley R.R. from Mt. Pleasant via Big Rapids to Lake Michigan does not seem to have passed the initial planning stage, and is therefore omitted

149 Interview with Captain Edward Ashley, grandson of the Governor and nephew of James M. Ashley, who adds to a general interest in lake shipping and his family tradition the experience in a lifetime in the naval and merchant service.

	Old line	New line	Saving in new
Against northbound traffic – total rise feet	138.5	48	90.5
Against southbound traffic – total rise feet	245.5	155	90.5
Maximum grade, southbound, ft. per mile	105.6	30
Maximum grade, northbound, ft. per mile	79.2	40

Main line Toledo., to Cadillac		234.30 miles
Branches:	South Lyons: Leland to South Lyons Quarry: Macon to Quarry St. Louis: S. V. & St. L. crossing to St. Louis	8.00 1.61 1.38
Sidings, 23.03 miles, Rail: iron 50 miles; steel 170.04 miles 56 and 67 lbs.
12/31/1887; engines 33, cars – passenger 13; baggage mail express 8; freight : box 495, platform 255, caboose 12, other 2

		1907	1906
Mileage worked		734	728
	Passenger earnings	$637,474	$618,715
	Freight earnings	3,001,368	3,056,050
	Per diem and equipment earnings	434,334	224,702
Gross earnings		4,298,925	4,118,809
	Maintenance of way and structures	699,140	602,626
	Maintenance of equipment	699,140	602,626
	Conducting transportation	1,624,783	1,510,564
Operating expenses		2,978,604	2,775,628
Net earnings		1,320,320	1,343,181
Net Income		5,819	159,764
Year’s surplus		5,819	159,764

Northbound		Southbound
No. 55 – steam	1:40 AM	No. 56 - steam	2:13 AM
No. 57 – steam	7:25 AM	No. 54 - steam	7:52 AM
No. 7 – motor	9:38 AM	No. 8 – motor	11:43 AM
No. 51 – steam	12:13 AM	No. 52 – steam	3:50 AM
No. 9 – motor	4:10 AM	No. 10 – motor	6:47 AM
No. 53 – steam	8:17 AM	No. 58 – steam	9:14 AM