The South Shore Line has survived as the country's last electric interurban railway. The modest beginnings date from 2 December 1901 when the Chicago & Indiana Air Line Railway was incorporated with a route from South Bend to East Chicago, Indiana. A 1904 corporate name change, to the Chicago, Lake Shore & South Bend Railway, signaled the owners' intentions for direct service to Chicago. After 1921 the railway's fortunes declined. The Midland Utilities Company bought the railway, and renamed the line Chicago, South Shore & South Bend Railroad. The late twenties were a time of success but by 1931 the effects of the depression were felt and the company deteriorated, and on 30 September 1933 the South Shore entered bankruptcy. By early 1938 a plan of reorganization had been worked out and the bankruptcy ended. With the outbreak of war in December 1941 traffic on the South Shore set records. After the war years, passenger traffic fell off sharply but was offset by the South Shore's continued growth as a freight carrier. The bumpy years of the late 1950s led to large deficits but in 1961 cost reductions, traffic expansion, and an internal reorganization helped to convert the annual loss into a profit. The Chesapeake & Ohio in 1967 assumed control of the line and increased its competitive position for freight traffic but losses from passenger traffic continued to mount and by 1976 the railroad was ready to end all passenger service. In 1977 the Indiana General Assembly passed legislation to form the Northern Indiana Commuter Transportation District. The NICTD was the agency through which federal, state, and local funds were made available to support South Shore passenger service. Between 1979 and 1983 the NICTD made improvements possible and passenger traffic was back up to its highest level since 1970. Early in 1984 the Indiana General Assembly passed legislation that would permit NICTD to acquire ownership of the railroad and by 1990 the NICTD eventually acquired ownership of all the railroad's Indiana trackage and facilities. Since it's near demise in the late 1970s, the South Shore has been transformed into a modern, efficient commuter rail line, carrying an average of 12,000 passengers each weekday to their jobs in Chicago. The public awareness of the railroad's unique historical status as the country's last electric interurban has grown, and the South Shore's future seems secure.
From the description of Collection, 1906-1989. (Indiana Historical Society Library). WorldCat record id: 60610060
