Milwaukee Road

The Chicago, Milwaukee, St. Paul and Pacific Railroad (CMStP&P), better known as the Milwaukee Road (reporting mark MILW), was a Class I railroad that operated in the Midwest and Northwest of the United States from 1847 until 1986.

The company experienced financial difficulty through the 1970s and 1980s, including bankruptcy in 1977 (though it filed for bankruptcy twice in 1925 and 1935, respectively). In 1980, it abandoned its Pacific Extension, which included track in the states of Montana, Idaho, and Washington. The remaining system was merged into the Soo Line Railroad (reporting mark SOO), a subsidiary of Canadian Pacific Railway (reporting mark CP), on January 1, 1986. Much of its historical trackage remains in use by other railroads. The company brand is commemorated by buildings like the historic Milwaukee Road Depot in Minneapolis and preserved locomotives such as Milwaukee Road 261 which operates excursion trains.

The railroad that became the Milwaukee Road began as the Milwaukee and Waukesha Railroad in Wisconsin, whose goal was to link the developing Lake Michigan port City of Milwaukee with the Mississippi River. The company incorporated in 1847, but changed its name to the Milwaukee and Mississippi Railroad in 1850 before construction began. Its first line, 5 miles (8.0 km) long, opened between Milwaukee and Wauwatosa, on November 20, 1850. Extensions followed to Waukesha in February 1851, Madison, and finally the Mississippi River at Prairie du Chien in 1857.

As a result of the financial panic of 1857, the M&M went into receivership in 1859 and was purchased by the Milwaukee and Prairie du Chien Railroad in 1861. In 1867, Alexander Mitchell combined the M&PdC with the Milwaukee and St. Paul (formerly the La Crosse and Milwaukee Railroad Company) under the name Milwaukee and St. Paul. Critical to the development and financing of the railroad was the acquisition of significant land grants. Prominent individual investors in the line included Alexander Mitchell, Russell Sage, Jeremiah Milbank, and William Rockefeller.

In 1874, the name was changed to Chicago, Milwaukee and St. Paul Railway Company after constructing an extension to Chicago in 1872. The company absorbed the Chicago and Pacific Railroad Company in 1879, the railroad that built the Bloomingdale Line (now The 606) and what became the Milwaukee District West Line as part of the 36-mile Elgin Subdivision from Halsted Street in Chicago to the suburb of Elgin, Illinois. In 1890, the company purchased the Milwaukee and Northern Railroad; by now, the railroad had lines running through Wisconsin, Minnesota, Iowa, South Dakota, and the Upper Peninsula of Michigan.

The corporate headquarters were moved from Milwaukee to the Rand McNally Building in Chicago, America's first all-steel framed skyscraper, in 1889 and 1890, with the car and locomotive shops staying in Milwaukee. The company's general offices were later located in Chicago's Railway Exchange building (built 1904) until 1924, at which time they moved to Chicago Union Station.

In the 1890s, the company's directors felt they had to extend the railroad to the Pacific to remain competitive with other railroads. A survey in 1901 estimated costs to build to the Pacific Northwest as $45 million ($1.35 billion in 2024 dollars). In 1905, the board approved the Pacific Extension, now estimated at $60 million ($1.62 billion in 2024 dollars). The contract for the western part of the route was awarded to Horace Chapin Henry of Seattle. The subsidiary Chicago, Milwaukee and Puget Sound Railway Company was chartered in 1905 to build from the Missouri River to Seattle and Tacoma.

Construction began in 1906 and was completed three years later. The route chosen was 18 miles (29 km) shorter than the next shortest competitors, as well as better grades than some, but it was an expensive route, since Milwaukee Road received few land grants and had to buy most of the land or acquire smaller railroads.