Chicago Pacific - successor to Rock Island?

Discussion relating to The Chicago & North Western, the Chicago, Rock Island & Pacific, the Chicago, Milwaukee, St. Paul & Pacific Railroad (Milwaukee Road), including mergers, acquisitions, and abandonments.

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Chicago Pacific - successor to Rock Island?

Postby ThePointyHairedBoss » Sun Apr 20, 2008 7:44 pm

Wasn't this the holding company that controlled the Rock? If I'm correct they owned not only the railroad, but oil along the Rocks routes in Oklahoma and Texas, along with Hoover vacuums and various other non-rail activities.

I remember reading that some people blame Chicago Pacific for the eventual collapse of the Rock Island, in that they were created with the sole purpose of using the land along the railroad for real-estate development, and the idea was that after the Rock was cast off to UP, that they could focus on their energy and consumer endeavors. They robbed capital that would have helped the railroad survive, so that they could finance these. The bankruptcy of the railroad after the UP rejection was more than likely so that they could find someone who wanted the CRIP (or parts of it). The trustees got rid of the oil division in 1978(?) to help prop up the railroad, but that failed, and they liquidated the railroad, leaving their desired "core" behind. What happened to Chicago Pacific? Did they go bankrupt? Did they change their name?
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Chicago Pacific

Postby NebraskaZephyr » Mon Apr 21, 2008 12:27 am

Chicago Pacific was not a holding company for the Rock Island: It WAS the old Rock Island.

After the railroad was shut down and portions liquidated, the CRI&P was able to reorganize and come out of bankruptcy. As part of the reorganization (and to publically distance itself from the railroad business it was no longer in), Chicago, Rock Island & Pacific dropped the "Rock Island &" to become simply Chicago Pacific Corp.

Flush with nearly $250 million in cash after the sale of assets, and having paid off all creditors IN FULL...one of the most successful bankruptcy reorganizations in business history...Chicago Pacific began investing in and buying a diversified portfolio of consumer-related companies. One of those purchases was the company that made Hoover vacuum cleaners.

(you may insert your favorite "sucking" joke here)

It was the desire to add a line of vacuum cleaners to their home appliance line that led Maytag to acquire Chicago Pacific in the mid-80s.

In the intervening years, Maytag gradually sold off most of the remaining rail-related assets, like the remaining real estate, interest in various property leases, etc. What was left of the Rock Island estate was gone before Maytag was itself swallowed up by Whirlpool Corp. a few years ago.

Hope this was of some help,

NZ
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Re: Chicago Pacific?

Postby ThePointyHairedBoss » Thu Jun 19, 2008 9:25 am

:-D Wow! Thanks! I never knew that. So Whirlpool is the legit. corporate successor to the Rock Island? But it's ironic that most of the Rock Island ended up in Union Pacific's hands. UP was the very railroad who refused the merger in 1975, now they own the Spine Line, The Golden State Route, and the O-K-T. Pretty much a connected system if one was to spin it off. So, in many ways, UP DID merge with the Rock Island, albiet slowly and in pieces.
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Re: Chicago Pacific?

Postby 57A26 » Mon Jun 30, 2008 10:48 pm

The Union Pacific has ended up with quite a bit of the Rock Island. One notable exception is what UP wanted most. The Council Bluffs to Chicago line.
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Re: Chicago Pacific - successor to Rock Island?

Postby Hirr » Thu Sep 22, 2011 2:55 pm

Does anyone know anything about the quit claim deeds issued by Chicago Pacific versus those issued by the CRI&P during the last bankruptcy?
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Re: Chicago Pacific?

Postby Minneapolitan » Wed Oct 26, 2011 8:06 pm

57A26 wrote:One notable exception is what UP wanted most. The Council Bluffs to Chicago line.


Why hasn't anyone else acquired this line since? I know the Iowa Interstate Railroad is largely redundant since both UP and BNSF now have good track between Chicago and Omaha, and therefore there isn't much to be gained in connections by entering Omaha (and Omaha isn't very big anyway). But CN still operates former IC across northern Iowa. And CP bought the DM&E/IC&E in part because of growing ethanol traffic, which IAIS also has. Or perhaps CSX in an attempt to compensate for NS's former Wabash line to Kansas City?
Nickel Plate Road should have merged with ERIE.

Duh.
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Re: Chicago Pacific - successor to Rock Island?

Postby Desertdweller » Wed Oct 26, 2011 11:31 pm

The old RI Omaha Main IS the Iowa Interstate.

The Rock Island was the first railroad in Iowa. Iowa City was the state capital before Des Moines. The Rock served them both.
Rock Island also was the biggest railroad in Iowa in terms of track miles. In addition to the Omaha Main, it also had the Spine Line (Des Moines to Minneapolis) and branch lines to Muscatine, Estherville, and Decorah. The Decorah line was abandoned north of Postville. The Davenport-Muscatine line went to CP. The Spine Line went to CNW. I don't remember who got the Iowa Falls-Esterville sub.

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Re: Chicago Pacific - successor to Rock Island?

Postby FMFan » Thu Oct 27, 2011 6:54 pm

57A26 wrote:
One notable exception is what UP wanted most. The Council Bluffs to Chicago line.

Why hasn't anyone else acquired this line since? I know the Iowa Interstate Railroad is largely redundant since both UP and BNSF now have good track between Chicago and Omaha, and therefore there isn't much to be gained in connections by entering Omaha (and Omaha isn't very big anyway). But CN still operates former IC across northern Iowa. And CP bought the DM&E/IC&E in part because of growing ethanol traffic, which IAIS also has. Or perhaps CSX in an attempt to compensate for NS's former Wabash line to Kansas City?

RE: Above, While it might be "redundant" the IAIS line from Blue Island (Ex-RI Chicago area yard) to Omaha still sees quite a bit of traffic, lots of ethanol shipments, among others. There is a fair amount of traffic on this line and the IAIS has bought new techno toasters painted in snazzy RI inspired scheme. Yes, before anyone jumps on it technically the RTA owns the line from Chicago to Joliet (including suburban branch) for commutes and CSX owns from Joliet to Bureau and south to Henry, IAIS has trackage rights and they maintain power for switching at BI. IAIS had a big derailment recently near Tiskilwa, lots of explosions and fires, that ethanol really burns.

Long Live the Rock

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