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Kansas City Southern history
Kansas City Southern company history timeline
Splitlog organized The Kansas City, Fort Smith and Southern on March 7, 1887, for he too, had ambitious plans for building southward through the Indian Territory (now eastern Oklahoma) to the Gulf of Mexico.
In 1887, Arthur Edward Stilwell and Edward L. Martin began construction on and incorporated the Kansas City Suburban Belt Railway in suburban Kansas City, Missouri.
Succeeding C. P. "Pete" Couch, was William Neal Deramus, born at Cooper, Alabama March 25, 1888 (d.
The KCP&G had been organized on November 6, 1889 and Stilwell had plans for the railroad to provide the shortest route to the Gulf of Mexico, connecting its namesake city with the coast.
Thus in 1889 the Kansas City, Nevada and Fort Smith Railroad was organized.
Beginning operations in 1890, the railroad served the Argentine District in Kansas City, Kansas; Independence, Missouri; and the riverside commercial and industrial districts of Kansas City.
In just over six months, he raised $2.5 million and in 1891 extended the line southward to Fort Smith, Arkansas.
On October 24, 1892, the northsouth Louisville, New Orleans & Texas became part of the Yazoo & Mississippi Valley Railroad, an Illinois Central subsidiary, and Vicksburg remained a busy railroad town into the 20th Century.
In 1892 George O'Brien, George Carroll, Pattillo Higgins, Emma John, and J. F. Lanier, founded the Gladys City Oil, Gas & Manufacturing Company.
Tracks then were laid as far as Joplin, Missouri, and in October 1893, another small line, The Kansas City, Fort Smith and Southern -- owned by Mathias Splitlog (b.
Stilwell, in turn, proposed they not stop at Hume, but continue south to Pittsburg, Kansas, to additional coal deposits, then on to the lead and zinc mines at Joplin, Missouri (reached in 1893); and even farther south to the ArkansasOklahoma coal lands.
Within a few years nearly half the group had given up but in 1895 a determined Anthony Lucas signed a lease with the remaining partners, believing strongly that oil was located in the Gulf Coast's salt domes.
Each of the prospects subscribed the exact amount Stilwell asked, the company was saved from receivership and, after McKinley's election in 1896, the Dutch investors took their bonds.
According to the KCSHS the earliest predecessor of the first L&A was launched by logger William Buchanan around 1896 to serve his sawmill near Stamps, Arkansas.
The LR&N's earliest predecessor was the Shreveport & Red River Valley Railroad, a project started by William Edenborn in 1896 to connect Shreveport with New Orleans.
Through service between Kansas City, Missouri, and Port Arthur, Texas, began after the last spike was driven about 12 miles north of Beaumont, Texas, on September 11, 1897.
1897), a wealthy Indian Chief was purchased.
1897 – Bucking the trend in railroad building, Stilwell completes the Kansas City, Pittsburg and Gulf Railroad Company (KCP&G) with a route running not east and west but north and south from Kansas City to Shreveport, Louisiana, terminating at Port Arthur, Texas, which is named for him.
100, built in February 1898 the first all steel business car ever built by the Pullman Company.
On March 18, 1898 it was officially chartered as a common-carrier, the Louisiana & Arkansas Railway, as Buchanan looked to continue growing his timber holdings.
Another project that put Mena in the limelight was the building by Stilwell interests of Wilhelmina Inn atop nearby Rich Mountain, which opened June 22, 1898.
The line was completed between Shreveport and Coushatta, Louisiana, and began operating about October 1, 1898.
In 1898 a terminus on Lake Sabine, Texas, was reached, which was named Port Arthur.
1900 – KCP&G becomes The Kansas City Southern Railway Company (KCSR).
In 1900 the company was reorganized as the Kansas City Southern Railway, with, among others, Edward H. Harriman as representative of the Dutch interests on the board.
In 1901, America's first gusher oil well the famous Lucas No.
The next extension southward was to Winnfield, Louisiana, reached on May 31, 1902.
The Louisiana Railway & Navigation Company was organized on May 9, 1903, to purchase all the property of the Shreveport & Red River Valley Railroad and to complete construction of the line into New Orleans.
On December 24, 1903 the line was extended south to Jena, Louisiana to reach large timber holdings in that vicinity, sawmills having been built at Trout and Good Pine.
As story has it, the car was considered such a perfect example of rail luxury that it was displayed at the Louisiana Purchase Exhibition in 1904 in St Louis, Missouri.
In 1905, a group of ambitious citizens in southwest Arkansas had sufficient faith in the future of the area to incorporate a railroad whose terminal points were to be Memphis, Tennessee, and Paris, Texas.
On June 16, 1906, a new charter was granted the corporate title of Memphis, Paris & Gulf, a standardgauge road from Nashville, Arkansas, to Ashdown, Arkansas. twentyfive miles to the southwest, where connection could be made with the Kansas City Southern at Ashdown.
On June 20, 1906, surveyor equipment began to arrive at Nashville, with horses, wagons and tools.
On the morning of October 19, 1906, the first carload of rails for the MP&G arrived.
The year 1906 saw the beginning of immigration in the Nashville area.
With a newfound source of revenue, and new leadership under Leonore Fresnel Loree (1906), the KCS looked towards expansion during the 20th century.
Through passenger service was inaugurated between Shreveport and New Orleans on April 14, 1907
The first car of logs to travel over the MP&G rolled into the mill on April 27, 1907.
By 1907, under President Edson's experienced guidance, the KCS had been built into a well equipped progressive property that was able to weather the depression which began the latter part of that year.
With the coming of winter in 1907, the MP&G had joined the towns of Nashville and Ashdown.
In the first week of February 1909, President W. W. Brown and Chief Engineer Le Mamla left Nashville on a scouting survey to find a suitable route into Hot Springs.
On August 20, 1909, W. W. Brown officially announced at Nashville that the MP&G was going to build into Hot Springs from Murfreesboro.
On June 1, 1910 its name was changed to the Memphis, Dallas & Gulf controlled by the Graysonia & Nashville Lumber Company.
A major step in the development of the property was the completion of the line into Shreveport largest and most important city in Northern Louisiana, on July 1, 1910.
September 6, 1910) was President during Edson's brief absence as Federal Manager for Kansas City, Mexico & Orient, KCS and Midland Valley Railroads.
Therefore, by 1910, a railroad of more than 300 miles had been built by William Buchanan without a cent of outside capital.
The eastern extension of the rails began when, on Saturday, March 11, 1911, Superintendent Dodson announced that he had awarded a contract to T. H. Sater for building east from Murfreesboro.
Both the Kansas City Southern Industries and The Kansas City Southern Railway Company make its home office at Eleventh and Wyandotte Streets, Kansas City, Missouri, where the Railway Company has been located in the same beautiful building since its construction in 1912.
Tracklaying east from Murfreesboro to Shawmut began on May 7, 1913.
A huge celebration was held March 17, 1914, in honor of the first train into Hot Springs.
On March 21, 1915 it opened between Hot Springs and Texarkana, Arkansas via Ashdown comprising a system of some 115 miles.
June 6, 1921) presided over the railroad, strengthening bridges and improving poor track conditions to make way for heavy unit coal trains serving various new electric generating utility power plants along the KCS lines.
Smith & Western Railway was incorporated in 1921 to purchase the Ft.
On August 15, 1922. it was sold at public auction in Nashville by receiver Martin Walsh.
Trackage rights were secured from the Texas & Pacific between Waskom, Texas, and Shreveport, and the Louisiana Railway & Navigation Company of Texas began operations April 1, 1923.
Looking to the west it acquired a former branch of the Missouri-Kansas-Texas Railroad ("The Katy") between McKinney, Texas and the Louisiana state line (near Waskom, Texas) on April 1, 1923.
By 1926, the MurfreesboroNashville Southwestern Railway had taken over operations between these two towns, and the GN&A became a 32mile line from Nashville to Ashdown.
Seeing the advantage of having its own means of transportation, it purchased the railroad in 1927.
1928. operating from Shreveport and connecting with Missouri Pacific at Hope, Arkansas.
Later that year, on July 7th he formed a second Louisiana & Arkansas Railway Company combining both into the new L&A on May 8, 1929.
On April 14, 1930. the corporate name of the Louisiana Railway & Navigation Company of Texas was changed to Louisiana.
Shortly thereafter, Vicksburg's rail transportation status was enhanced with completion on April 28, 1930, of a bridge across the Mississippi River by the citizens of Warren County, Mississippi, for both highway and rail traffic.
The "Texas" line was extended to Dallas, Texas, on July 1, 1932, through trackage rights with the Missouri-Kansas-Texas Railroad of Texas.
1937, a connection was established with the Gulf, Colorado & Santa Fe (The Atchison, Topeka and Santa Fe) at Farmersville, Texas, thence into Dallas, and operation over the MKT was discontinued.
The system began using diesel-electric locomotives on its "Flying Crow" passenger trains Kansas City to Port Arthur, Texas, in 1938.
Arkansas & Texas Railway was purchased by and became a part of the Louisiana & Arkansas Railway Company July 1, 1939.
In 1939 part of the abandoned Fort Smith and Western was acquired as the Fort Smith and Van Buren Railway.
On September 2, 1940, the Kansas City Southern inaugurated its "Southern Belle" passenger train serving "Streamlined Hospitality" between Kansas City and New Orleans, via Shreveport.
In the late 1940's, a Chevrolet truck was equipped with flanged wheels and was to be used as an economical experiment in delivering mail and express on a daily roundtrip basis between Nashville and Ashdown.
In 1940 KCS reported 1345 million net ton-miles of revenue freight; L&A had 778 million.
A bitter battle ensued in 1944, when local businessmen wrested control of KCSR from East Coast investors, demanding the resignation of then Chairman Charles P. Couch.
June 11, 1945) was brought in as President of KCS, bringing with him expertise from his presidential tenure with the Santa Fe, with thoughts of even greater expansion.
By 1950, the KCS owned a network of 962 miles and had it forever remained this size would likely be only a Class II, "regional," today.
Shortly after, the road began supplanting steam freight locomotives with diesels, and the railroad was entirely dieselized by 1951 .
In 1951, steam disappeared from the roster of the GN&A when a 660horsepower diesel was acquired.
Deramus Yards at Shreveport, Louisiana, named for W. N. Deramus, was officially dedicated March 24, 1956.
After the nation's severe 1958 recession (also referred to as the Eisenhower Recession), the KCS experienced a slow and worsening decline.
On January 29, 1962, Kansas City Southern Industries was incorporated for the purpose of engaging in diversified business and manufacturing enterprises.
1962 – To pursue investments in non-rail business, KCSR President William N. Deramus, III, establishes Kansas City Southern Industries Inc. (KCSI).
226, eastbound, Shreveport to Meridian, called "Northeastern Limited". Passenger service on the Vicksburg Route continued until 1968.
A new company, DST Systems Inc., was incorporated in 1968 to market these systems to the financial services industry.
As the 1970's waned. however, the ICG began the piecemeal abandonment and sale of the old LNO&T secondary main.
Keith L. Bryant, Jr., Arthur E. Stilwell, Promoter with a Hunch (Nashville, Tenn.: Vanderbilt University Press, 1971).
Another lawsuit was brought forward in 1971, challenging the merger of Supervised Investors Services and Kemperco Inc. and asking payment of profits made through the stock swap.
IC became Illinois Central Gulf with the 1972 merger of the Magnolia State's other major railroad. the Gulf, Mobile & Ohio.
Under the direction of new president Thomas S. Carter in 1973, who replaced Deramus's son (William N. Deramus III), the modern day KCS system began to take shape.
Schafer notes that 1974 cost the railroad $2 million in damages via 41 derailments.
The hazardous bridge was bypassed on October 17, 1977, when the Interstate 20 bridge, built 330 feet downstream from the old structure, was opened.
In 1983 DST Systems Inc. went public, filing an initial public offering of 1.38 million shares.
MidSouth's first day of operation was April 1, 1986.
The GWWR was itself a new startup for the defunct Chicago, Missouri & Western Railway, launched on April 28, 1987 over yet more former Illinois Central Gulf trackage.
(Excerpted from "Rebirth of the Vicksburg Route" by Louis R. Saillard, appearing in TRAINS Magazine, April 1989, Pages 3041)
Export coal volume grew tremendously in 1989, and KCSR was poised to handle overflow from eastern ports into ports on the Gulf of Mexico, notably Port Arthur.
On January 9, 1990 the new Gateway Western Railway was formed by a New York investment firm, acquiring the 408 miles from St Louis to Kansas City via Springfield while the remainder into Chicago was purchased by Southern Pacific.
The railroad acquired total ownership of the facilities in Port Arthur in 1991.
By the end of 1991 managed assets had grown to nearly $1.4 trillion.
DST's operating income dropped 33 percent in 1992 after losing Vanguard as a customer.
The GN&A remained a small short line operation until its acquisition by KCS on July 13, 1993.
DST was the leader in providing third-party services to the mutual fund industry in 1993, holding 40 percent of the market.
1994 – Acquisition of the MidSouth Rail Corporation extends KCSR’s service territory to Meridian, Mississippi; Counce, Tennessee; and Tuscaloosa and Birmingham, Alabama, with trackage rights into Gulfport, Mississippi.
With the formation of the North American Free Trade Agreement in 1994 and the consequent changes in North American shipping patterns, it was the ideal time for this expansion.
The GWWR became successful in part due to the Santa Fe, which utilized trackage rights to reach St Louis (until the Burlington Northern Santa Fe merger of 1995).
In 1995 it was purchased by Union Pacific.
1995 – KCS enters into an agreement with Grupo TMM, S.A. de C.V., a Mexican-based ocean shipping and logistics company to pursue the concessions of one of Mexico’s soon-to-be privatized rail lines.
1996 – The Surface Transportation Board provides Tex Mex trackage rights to connect with KCSR at Beaumont, Texas, linking KCSR and Tex-Mex and opening the way to KCSR's expansion.
1996 – KCS and its partner Grupo TMM submit their bid for the Northeast Line rail concession, the premiere Mexican rail corridor.
The second significant addition was the purchase of Gateway Western (and its subsidiary, Gateway Eastern) in May of 1997.
1997 – With the Northeast Line rail concession in place, Transportacion Ferroviaria Mexicana, S.A. de C.V. (TFM) begins commercial operation.
1998 – KCS invests in the Panama Canal Railway Company, which operates the first transcontinental railroad in the world.
Kansas City Southern's logo was virtually unchanged throughout its life while it featured a number of different paint schemes over the years ranging from whites, reds, blacks, and grays to its switch back to the classic Southern Belle scheme of Brunswick Green, yellow, and red during the mid 2000's.
Looking toward the year 2002, KCS still maintains the same vision just as Arthur Stilwell had intended: THE SHORTEST ROUTE FROM KANSAS CITY TO SALT WATER The Kansas City Southern Railway Company!
2002 – Stockholders approve changing KCSI's name to Kansas City Southern to reflect a new focus on rail transport.
2004 – KCS acquires Grupo TMM’s shares of TFM to become majority owner.
2005 – KCS acquires the remaining 20 percent interest in TFM. TFM becomes a wholly-owned subsidiary of KCS and is officially renamed Kansas City Southern de Mexico (KCSM).
In 2006 KCS announced they would rebuild the Macaroni Line (through subsidiary Tex Mex) to end the need for trackage rights on a circuitous Union Pacific route.
The railroad began first clearing the right-of-way for rehabilitation in 2007 and had it ready for service within a few years.
In June 2009, the Kansas City Southern began operating on new trackage between Victoria and Rosenberg, Texas, known as the Macaroni Line .
In September 2020, the company rejected takeover offers from Global Infrastructure Partners that ranged up to $23 billion; the final offer valued the company at a 17% premium over its share high in February 2020 despite the COVID-19 pandemic.
In March 2021, Calgary-based Canadian Pacific Railway offered over $25 billion to purchase KCS. The purchase would allow the Canadian company to create the first rail network connecting the United States, Mexico and Canada.
However, in May 2021, Canadian National Railway announced a superior bid to CP's, which KCS management later agreed to support.
However, the Surface Transportation Board unanimously killed the voting trust on August 31, 2021, which paved the way for the renewed CP-KCS merger.
In August 2021, CP announced an increased bid that, while still less than CN's bid, was claimed by CP to have a greater chance of regulatory approval.
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Kansas City Southern competitors
| Company name | Founded date | Revenue | Employee size | Job openings |
|---|---|---|---|---|
| Genesee & Wyoming | 1899 | $2.3B | 7,300 | 158 |
| Watco | 1983 | $1.0B | 3,000 | 115 |
| CSX | 1978 | $14.5B | 20,908 | 19 |
| Celadon Group | 1985 | $1.1B | 5,975 | 5 |
| Yellow | 1924 | $5.2B | 19,000 | 2 |
| GATX | 1898 | $1.6B | 1,904 | 56 |
| Pioneer Railcorp, Inc. | 1986 | $28.3M | 100 | - |
| TTX | 1955 | $1.1B | 1,685 | 28 |
| Canadian Pacific Railway | 1881 | $10.6B | 11,904 | 47 |
| BNSF Railway | 1996 | $20.7B | 41,000 | 227 |
Kansas City Southern history FAQs
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Kansas City Southern may also be known as or be related to Kansas City Southern and The Kansas City Southern Railway Company.