Shenandoah Valley Railroad (1867–90)

Shenandoah Valley Railroad
Locale Maryland, West Virginia and Virginia
Dates of operation 18671890
Successor Norfolk and Western Railway
Track gauge 4 ft 8 12 in (1,435 mm) standard gauge
Headquarters Roanoke, Virginia

Shenandoah Valley Railroad was a line completed on June 19, 1882, extending down the Shenandoah Valley from Hagerstown, Maryland through the West Virginia panhandle into Virginia to reach Roanoke, Virginia and to connect with the Norfolk and Western Railway (N&W). The development of this railroad had considerable backing from the Pennsylvania Railroad. In September 1890 it went into bankruptcy and was reorganized as the Shenandoah Valley Railway. In December 1890, it became part of N&W. Today the tracks are a major artery of the Norfolk Southern system.

South of Harrisonburg, Virginia, a former part of the Norfolk Southern System a few miles west was a parallel line originally called the Valley Railroad. It was built in the late 19th century by Baltimore and Ohio Railroad, a fierce competitor of the Pennsylvania Railroad. The line was purchased in 1942 by the Chesapeake Western Railway. A portion extending northward from Staunton, Virginia in Augusta County and Rockingham County became a new short-line railroad formed late in the 20th century by several major shippers. The historic name of the once rival was adopted for the current privately owned intrastate Shenandoah Valley Railroad.

Planning

The organizers of the SVRR planned to construct a railroad from the Pennsylvania Railroad (PRR) station in Hagerstown, Maryland (a branch out of Harrisburg, PA called the Cumberland Valley Railroad) to the Virginia and Tennessee Railroad (V&T) in Salem, Virginia. The route called for 243 miles (391 km) of new construction. The line follows closely the great iron ore belt along the western slope of the Blue Ridge Mountains.

Peter Bouck Borst of Page County, Virginia introduced a charter for the railroad for a bill before the Virginia General Assembly in 1866. The ambitious plan was to build a railroad from Harpers Ferry, West Virginia, to the Virginia Central Railroad somewhere near Staunton, to a connection with the V&T around Salem, and finally to somewhere near the southwest corner of Virginia to meet the East Tennessee and Virginia Railroad at Bristol, Virginia.

Since the route traversed three states (Maryland, West Virginia, and Virginia) three legislative authorizations were required. Virginia provided approval on February 23, 1867. West Virginia approved the construction idea on February 25, 1870. Maryland provided the final approval needed on April 4, 1870.

On March 14, 1870, the company was formed and the first president, Peter Bouck Borst, was elected.

Rival railroads

After Maryland approved construction of a bridge over the Potomac river anywhere between Harpers Ferry and Williamsport, the Pennsylvania Railroad (PRR) took notice. There could be link with rival B&O railroad, as well as a link with its own Cumberland Valley Railroad, just north of Williamsport in Hagerstown. This new north/south line would be the key to capturing the traffic on numerous just-acquired southern lines and directing it to the port of Philadelphia. The competing B&O wanted to divert the riches of the area to the port of Baltimore and expand into the south. Each tried to cut off the other from the south. Meanwhile, Virginia really didn’t want either to succeed so that traffic would be directed to the Norfolk port.

The PRR began purchasing stock in the SVRR, and took effective control of it. B&O took control of a competing north/south line called the Valley Railroad. The plans showed the railroads were to run parallel to each other through the valley, sometimes just a few miles apart. The race was on.

Main line construction (1870–1882)

The Central Improvement Company (a subsidiary of Pennsylvania Railroad) was awarded a contract to construct 224 miles (360 km) of the SVRR from Shepherdstown to Salem for $35,000 a mile. The work was to be completed by August 1872. The major source of capital came from the sale of 6% mortgage bonds backed by the Pennsylvania Railroad.

In 1871, Thomas A. Scott was elected as the second president of SVRR; he was also a Vice President of the Pennsylvania Railroad. Peter B. Borst was forced out because of his involvement with a competing plan for a similar rail line called the Luray Valley Railroad Company that was pushed through the Virginia General Assembly in 1870.

In August 1871, the Central Improvement Company submitted a proposal to cancel the construction contract, asking for payment only for work completed. The proposal was rejected by SVRR. In 1872, the deadline for completion of the railroad was extended to January 1875 and 94 miles (151 km) of work south of the C&O railroad in Staunton eliminated. Service began between Shepherdstown, WV and the Shenandoah River on December 15, 1879.

In September 1872, the Cumberland Valley Railroad (a subsidiary of Pennsylvania Railroad) was asked to construct the tracks from their station in Hagerstown, MD to Shepherdstown, WV. Service began on that stretch in 1880.

Problems with PRR escalated over the inability to obtain a traffic contract with the Cumberland Valley Railroad. SVRR sent a team of surveyors during the summer of 1880 into Pennsylvania indicating a desire to build a line to Harrisburg to connect with the competing Philadelphia and Reading Railroad line. The bluff worked and a contract was worked out. But the split with PRR was now inevitable.

Also in 1880, service began on the section south of the Shenandoah River between Elkton and Waynesboro. In 1881 the north and south sections were connected. Finally, in 1882, it stretched south to meet the Norfolk and Western Railroad in the new railroad town of Roanoke, Virginia. The track was now complete.

Meanwhile, rival Valley Railroad (VRR) was trying to raise capital. With Robert E. Lee as its spokesman, it convinced Baltimore to authorize $1,000,000 to secure funding by other Virginia counties. Baltimore was to gain considerably by having the traffic from the richest parts of the south directed its way. Many delays occurred, particularly after the recession on the 1870s, but traffic finally began between Harrisonburg and Staunton in 1883. The southern section was never constructed.

Recession, strikes and bankruptcy (1882–1890)

The financial panic of 1873 brought a deep recession that suppressed business into the 1880s. In 1882 SVRR received a loan of $79,000 from Philadelphia financiers E.W. Clark & Co. to cover that year’s shortfall. The life of all the bridges was ending and significant funds would be needed in the coming years.

In 1882, N&W made a deal with PRR to swap the SVRR share capital for N&W common stock. SVRR got a loan from N&W of $600,000, plus up to $200,000 per year for 3 years. PRR kicked in $150,000 as advanced payment for highly discounted future traffic contracts. Control of SVRR stock was now with N&W. In 1883, SVRR floated $1.8 million of income bonds. Revenues continued to be far below forecast due to the bad economy.

In early 1885, SVRR defaulted on its loan interest, taxes, payrolls, and bills. A Roanoke judge put the line in a receivership, but in December, the mortgage company holding its notes filed suit for liquidation of the road’s assets. The Norfolk and Western Railroad fought a legal battle for the next four years to regain control. On September 30, 1890, the SVRR was reorganized as the Shenandoah Valley “Railway”, with stockholders approval to sell to N&W. On December 2, the Shenandoah Valley Railway acquired the rights to the franchise of the Washington and Western Railroad. On December 15, 1890, N&W purchased the company outright for $6,000,000 of stock and added the rails to its system.

The competing Valley Railroad ran out of capital to build in 1884 and struggled until it went into receivership in 1896. The final length of that line was 36 miles (58 km) from Staunton to Lexington, the southern 51 miles (82 km) to Salem never finished. The line was never profitable.

Stations

Mile Location
0.0Hagerstown, (Washington County) MD
5.9Saint James, MD
9.0Grimes, MD
14.1Antietam, MD
16.9Shepherdstown, (Jefferson County) WV
19Morgans Grove, WV
23.1Shenandoah Junction, WV
28.4Charlestown, WV
32.5Wheatland, WV
33.7Rippon, WV
36.2Gaylord, (Clarke County) VA
39.9Berryville, VA
46.2Boyce, VA
49.2White Post, VA
53.2Ashby, (Warren County) VA
56.4Cedarville, VA
59.2Riverton, VA
62.1Front Royal, VA
66.4Manor, VA
72.9Bentonville, VA
75.6Overall, (Page County) VA
79.8Rileyville, VA
Mile Location
83Vaughn’s Summit
85.1Kimball, VA
86Elgin, VA
88.8Luray, VA
95.6Marksville (Stanley), VA
101.9Ingham, VA
104.0Grove Hill, VA
106.7Milnes, VA
112.5Elkton, (Rockingham County) VA
??Sellers
127.2Port Republic
130Grottoes
129.1Weyer’s Cave, (Augusta County) VA
132.1Patterson
133Harriston
136.9Crimora, VA
141Dooms, VA
143.2Waynesboro Junction, VA
148.0Lyndhurst, VA
150.0Lipscomb, VA
153.0Stuart’s Draft, VA
159.4Greenville, VA
Mile Location
162.7Lofton, VA
167.6Vesuvius, (Rockbridge County) VA
174.9Midvale, VA
179.7Riverside, VA
186Buena Vista, VA
186Loch Laird, VA
188.7Thompson, VA
191.0Buffalo Forge, VA
197Glasgow, VA
198.6Natural Bridge, VA
207Solitude
208.9Arcadia, (Botetourt County) VA
214.2Buchanan, VA
219.2Lithia, VA
224.6Houston, VA
225Nace, VA
227.9Troutville, VA
232.2Cloverdale, VA
234Hollins, (Roanoke County) VA
236.5Tinker Creek
239.3Roanoke, VA

Historical timeline

1867
  • Shenandoah Valley Railroad chartered 2/23/1867
1870
  • Shenandoah Valley Railroad organized as a subsidiary of the Pennsylvania Railroad.
  • Work on the road (railroad track) begins.
1873
  • Work is suspended because of difficulty with contractor
1879
  • Construction resumes in the spring of 1879.
  • Train service begins between Shepherdstown and the Shenandoah river on 12/15/1879 (42 miles).
1880
  • Service extended southward from Shenandoah River to Front Royal on 4/1/1880.
  • Service extended southward to Bentonville on 5/10/1880.
  • Service extended northward to Hagerstown on 8/19/1880.
  • Service extended southward to Milford (now Overall) on 9/6/1880.
  • Separate section of service between Elkton and Waynesboro (area now called Basic City) begins on 11/22/1880.
  • The northern section extended south to Shenandoah Iron Works on 12/20/1880.
1881
  • Elsewhere: Norfolk & Western Railroad Company (N&W) formed from purchase of Atlantic, Mississippi, and Ohio Railroad.
  • Virginia, Tennessee, Georgia Air Line was formed via a contract between SVRR, N&W, and the East Tennessee, Virginia, and Georgia Railroad. The Air Line was between Hagerstown, MD and Norfolk, VA.
  • The northern and southern sections of track are connected on 4/18/1881. Service is now from Hagerstown MD to Waynesboro VA.
1882
  • Track completed southward from Waynesboro (Basic), VA to Roanoke, VA on 6/19/1882. Connection with Norfolk & Western Railroad is established.
  • A contract between SVRR and N&W is signed on 12/29/1882 (ratified by stockholders on 2/12/1883). The majority of SVRR share capital was traded for N&W common stock. N&W agreed to loan SVRR up to $200,000 per year, for a maximum of 3 years from 1/2/1883, if it loses money.
1883
  • First-ever annual report is published. It is called the “Third Annual Report” to coincide with the N&W numbering scheme.
  • Loss of $183,648.16 is covered by $200,000 loan from N&W for year 1883.
1884
  • The Southern Despatch Line is formed between Pennsylvania Railroad, Cumberland Valley Railroad, Western Maryland Railroad, SVRR, N&W, and East Tennessee, Virginia and Georgia Railroad.
  • $135,000 loan from N&W for year 1884.
1885
  • Shenandoah Valley Railroad forced into receivership 04/01/1885.
1890
  • In September, Shenandoah Valley Railroad sold under foreclosure and reorganized as the Shenandoah Valley Railway; in December, Shenandoah Valley Railway is acquired and absorbed by Norfolk & Western Railroad.

Stations and other railroad locations

The names listed are for the station or siding, not necessarily the name of the town they were near or in. Many times the station names were changed because they were the same as another station on another line, which after the lines were connected became very confusing to customers. Towns that grew up around stations often chose the station name as their name.

Tracks were moved over time to eliminate steep grades and sharp curves, so the mile post values changed slightly throughout history. The mileage values listed are from the SVRR era, mostly the late 1880s. Most of these markers still exist along the tracks today, each showing H and a number to designate the mileage from Hagerstown.

The first date in parentheses is when the location first appeared in literature, whether there was station or not. A second date is the date the location/stop was eliminated (if known). A most definitive source of these dates are the annual reports, as they contain station/siding listings. Most stations were demolished in the 1950s, a listing of these has not yet been located.

Now: Saint James MD 2004
Shepherdstown WV 2005
The very first train to Shepherdstown arrived on January 1, 1879. However, that was just a construction train. Although lots of people were on hand to see the first train arrive, the town decided to mark the event with a little more fanfare a week later when passengers arrived. People from the SVRR, the contractors who built the track, and many other dignitaries were invited to attend. A parade made up of the Town Council, the local band and others started at Shepherd College (now McMurran Hall) and marched to the station to meet the train. It arrived at about 12:15 p.m. on January 8, 1879, to loud cheering, music from Criswell’s Cornet Band, and the ringing of every church bell in Shepherdstown.
The first train station (built before 1884) was a wooden structure, located south of Princess St. (behind the Southern States). It looked very much like the Antietam station at Sharpsburg. In Nov of 1884 the safe in the station was robbed of about $60 by professionals who drilled a hole into it and blew it up with powder. Some time later the current station was built exclusively for passengers, and the old station was used exclusively for freight. As of 2006, the passenger station has been restored and is accessible though it is being used commercially.
Morgan's Grove Siding 2005
Gaylord VA Post Office 2005
The railroad agency was discontinued around 1956. Shortly before station closure, the large waiting room was rented to the Post Office Department and became the town's post office. The building was sold and the land under it was leased by the N&W Railway. During the time that it was a post office, other portions of the station were used by a FISH charity and also for livestock feed storage.
After the Post Office was moved to a new location on West Main Street, the station was sold and renovated as a restaurant with few modifications to its interior. Subsequently, it was owned by the Winchester Chapter, National Railway Historical Society, then by Bridgehead Fine Woodworking. In 2003 it was purchased by the Railway Mail Service Library and is now the home of an archival post office and railroad collection. A portion of the small waiting room is occupied by Railway Station Press, a historical letter-press collection.
White Post VA Building 2005
In 1879, the three major businesses were the Riverton Flour Mills, Warren Manufacturing, and the Riverton Stone and Lime Company. The later was the first large traffic generator for the railroad, the reason why Riverton was the end of the first phase of the railroad. Today, the tracks appear to be under the bridge leading to Front Royal. The SVRR station was located somewhere north of the river.
Peter Bock Borst, involved heavily with SVRR, was the postwar development spokesperson for the Shenandoah Valley. With the motto, "It is better to wear out than rest out," the latter part of his life was filled with labor. On April 24, 1882, while in the service of legal matters at the Rust House, and in the presence of Judge Bird and several other lawyers, suddenly and noiselessly Borst fell back in his chair, and although a dozen hands were willing to go to his assistance he was dead from apoplexy, by the time they could lay him on the bed. Borst was laid to rest in Green Hill Cemetery. Isabella would survive her husband for several more years before passing in 1916 and being laid to rest next to Peter.
Now?: Stanley VA 2006
Marksville, according to Page's veteran auctioneer George Bailey, got its name from a family by the name of Marks who long since lived at that place. All the family members are gone. It is unclear what was the relationship between Marksville and Stanley, though an 84-year-old lifelong resident of the area indicated that they were the same. A nearby bridge was called East Liberty, another name found on 1890 RR maps.
In Stanley, VA 2006
Named after William Milnes (1827–1889). He was born in England on December 8, 1827, and was eventually a Representative from Virginia. He immigrated to the United States in 1829 with his parents, who settled in Pottsville, Pa. He attended the public schools, learned the machinist’s trade, engaged in mining and shipping coal, then moved to Virginia in 1865 and settled in Shenandoah. There he engaged in the iron business, was a member of the State house of delegates in 1870 and 1871. Upon the readmission of Virginia to representation, he was elected as a Conservative to the Forty-first Congress and served from January 27, 1870, to March 3, 1871. After which he resumed the iron business, became president of the SVRR, and eventually died 08/14/1889 and buried in the family plot in Old Cemetery.
Through the work of William Milnes, Shenandoah became the midpoint between Roanoke, Virginia and Harrisburg, Pennsylvania and enabled town industries to ship out their goods through means other than the river. Milnes took advantage of the railroad's presence and erected the Big Gem Cast Iron Furnace. The Big Gem was completed in 1882 and produced 110 tons of iron ore per day. It became a popular tourist destination as well because of the sparks that could be viewed each night as red hot cinder was poured down the cinder bank.
On June 27, 1882, the name of the post office was changed from Shenandoah Iron Works to Milnes. On February 12, 1884, an Act was passed by Virginia General Assembly to incorporate the town. It bore the name Milnes, in honor of William Milnes, Jr., President of the Shenandoah Valley Railroad. He died in 1889. On March 8, 1890, the name of the post office was changed from Milnes to Shenandoah. Thereafter, the name of the town was changed, by an Act of the General Assembly, from Milnes to Shenandoah City. During the following years, the word "city" was informally dropped from the town’s name.
Hotchkiss' Grottoes Land Company mapped out a town called Shendun, an alternate pronunciation of Shenandoah, which became a reality in 1891 with 700 residents. The Plumber's Supply Works and a brass factory were being built. There were two brick factories, Jordan Brick Works and Law Brick Factory, a woolen mill, a plaster factory, a tile factory and a sash and blind factory started about this time. Many of these factories had borrowed money from the Grottoes Company to initiate their business. A tin shop was ready to open and a twenty-four room hotel was under construction. In that year mail service started, a bank was built, the roads were paved, a newspaper was founded, and businesses flourished. On February 16, 1892, the Virginia General Assembly incorporated Shendun.
The following year, however, was not good. Not only was the nation plunged into a depression, but also Hotchkiss' company and the newspaper failed and the Grottoes Hotel burned to the ground. By the early 20th century, many businesses had started anew, including the Bank of Grottoes, which opened in 1908. In 1912, the town started fresh with a new name, Grottoes.
On Grottoes' southwestern outskirts is Grand Caverns Regional Park. Grand Caverns is the reason for the name of Grottoes. Like the village of Weyers Cave to the west, Grottoes was named for this tourist attraction, but unlike Weyers Cave, which actually has no caverns, this is the real place.
Sherando is an alternative spelling of Shenandoah. A post office was established here in 1853 and discontinued in 1913. Sherando Station, as it was once called, was the site of a porcelain pottery business after a vein of pure white kaolin was discovered. An extensive fire at the pottery and the economic crash of 1873 put an end to that operation. Iron, manganese and sand have also been mined in the area. Mount Torry Furnace, the remains of which can be seen along Va. 664, was built in 1804 by Englehard Yeiser and is located 4-1/2 miles from the station location. During the Civil War the furnace supplied iron to the Confederate cause and thus suffered the wrath of Union General David Hunter in 1864. The ironworks reopened after the war but closed permanently in 1884. The ruins of the furnace are listed on the National Register of Historic Places.
Another mine, on the Kennedy Iron Tract, was adjacent to the Furnace. In 1884 it consisted of good quality 31% manganiterous iron ore and 17% metallic iron ore. Nearby (but not known where) was the Catopaxi Furnace which was abandoned around 1860. In 1884 a mine was on Newton’s property 3 miles (4.8 km) east of the furnace, 4 miles (6.4 km) from the SVRR.
Under the management of A.T. Barclay, the Buena Vista Company was created in 1889 to promote the development of the iron resources of the vicinity, to utilize the water power of the North River (now known as the Maury River), and to create an industrial and manufacturing center. Within a year, Buena Vista (other possible names were Green Forest and Glasgow) was established as a town with a population of approximately 400 and all the promise of good things to come. The construction of the Norfolk and Western Railroad helped trigger a great land boom in 1889. The station opened in 1890. People eager to take advantage of the opportunities relocated to the town and by February 15, 1892, it had a population of 5,240 persons. The city of Buena Vista quickly became the center for this "boom" activity in the county. It was incorporated as a first class city in 1891 and thus became politically independent of Rockbridge County.
The attraction to Buena Vista was iron ore which was located in the foothills, The Buena Vista Company decided to build a furnace to convert pig iron to steel and opened an old mine which had been use for many years before by John Jordan. Though the furnace was operated for many years , the supply of local ore only lasted a short time and the furnace had to be fed by ores transported over a long distance. Subsequently, a fertilizer factory was built along with a glass plant, woolen mills, firebrick plant and a foundry. The Buena Vista Paper Mills manufactured from eight to ten tons of books, news and wrapping paper per day. The Buena Vista Cassimere Mills, producer of cassimere and woolen cloths, was capable of 650 yards (590 m) per day of 3 quarter goods. The Marr Egg Crate Company manufactured its owner's patented invention designed for the safe transportation of eggs. The Wise Wagon Works, which was capable of producing 1,000 wagons per year, and the Wilbourne Saddle and Harness Factory, were also located in Buena Vista. The panic of 1893 signaled the end of the land boom. and like many other boom towns of the period, Buena Vista suffered.as a result. By that time it had over 5,000 residents and 19 industries employing 1,000 workers. Buena Vista's hearty people survived the crash better than most other towns that experienced the same disappointments. and has always managed to bounce back so that progress is steady toward the establishment of a viable economy.
On September 17, 1892, a procession of fine polished carriages began to arrive through the newly lighted street lamps of Glasgow's mammoth Hotel. People from all across the nation and from more than a dozen foreign countries attending the opening night gala. The hotel boasted more than 200 rooms and suites in Queen Anne style, as well as a roof garden, a daring architectural innovation in the 1890s. On the very night of the gala opening, however, the failure of the Baring Brothers International Bankers touched off an alarm that was soon felt across the Atlantic. The economic panic of 1893 put the Rockbridge Company out of business.
The panic was caused by the Reading Railroad, a major eastern line, going out of business. It was soon magnified by the failures of hundreds of banks and business that were dependent upon the railroads. The United States Treasury experienced a drain on its gold reserves, which developed into a full-fledged panic in 1893. The Rockbridge Company's stock and land values plummeted, and the company failed. The stock market reacted with a dramatic plunge and European investors started pulling their funds from United States Stocks. With the end of the Rockbridge Company, plans for Glasgow's development ended

See also

References

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