the Milwaukee Road filed for bankruptcy in the late 1970’s,. Part of the bankruptcy included the abandonment of the entire Pacific Extension from Terry, MT to Renton, WA, over 1100 miles, making it the single largest abandonment in American History.
It was just before Christmas 1977 the Milwaukee Road filed for reorganization. Federal Judge Thomas R. McMillen, Northern District of Illinois presided over the entire case. I had about 7 years of service at that point and was not optimistic. The railroad had just hired Worthington Smith and Paul Cruikshank as president and vice-president marketing. Both came from hi- level executive positions with the BN, and many of us wondered where their loyalties were. After Judge McMillen fired the first trustee, he replaced the guy with Richard Ogilvie. “Oh joy,” was the collective response. The judge eventually ruled the railroad as it was could never survive, and expressed the intent to break in down to a “core,” and sell it. The abandonment between Terry, Mt. and Renton, Wa. reflects that intent. In the end there were four core bidders: 1) Soo Line Railroad (CP Rail), 2) GTW Railroad (CN), 3) CNW Railroad and 4) a group of investors. The CNW made an offer almost twice that of the Soo, and Ogilvie recommended to the court that it accept the offer. To everyones astonishment Judge McMillen said,”Soo Line,” tapped his gavel and the long case came to an end. Soo President Dennis Cavanaugh told the railroad legal department to be ready to close on the deal in 24 hours. Apparently the point was to preclude a CNW appeal. A Milwaukee Road attorney, Thomas Ploss, wrote a self published book after the reorganization entitled, “The Nation Pays Again,” wherein he expresses the opinion that the proceedings were unnecessary. (The book is pricey, but available all over the web.)
It was just before Christmas 1977 the Milwaukee Road filed for reorganization. Federal Judge Thomas R. McMillen, Northern District of Illinois presided over the entire case. I had about 7 years of service at that point and was not optimistic. The railroad had just hired Worthington Smith and Paul Cruikshank as president and vice-president marketing. Both came from hi- level executive positions with the BN, and many of us wondered where their loyalties were. After Judge McMillen fired the first trustee, he replaced the guy with Richard Ogilvie. “Oh joy,” was the collective response. The judge eventually ruled the railroad as it was could never survive, and expressed the intent to break in down to a “core,” and sell it. The abandonment between Terry, Mt. and Renton, Wa. reflects that intent. In the end there were four core bidders: 1) Soo Line Railroad (CP Rail), 2) GTW Railroad (CN), 3) CNW Railroad and 4) a group of investors. The CNW made an offer almost twice that of the Soo, and Ogilvie recommended to the court that it accept the offer. To everyones astonishment Judge McMillen said,”Soo Line,” tapped his gavel and the long case came to an end. Soo President Dennis Cavanaugh told the railroad legal department to be ready to close on the deal in 24 hours. Apparently the point was to preclude a CNW appeal. A Milwaukee Road attorney, Thomas Ploss, wrote a self published book after the reorganization entitled, “The Nation Pays Again,” wherein he expresses the opinion that the proceedings were unnecessary. (The book is pricey, but available all over the web.)
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