Re: Revenue Divisions Between Railroads

Alex Huff
 

Confirming what Fred Crissey said, divisions of revenue between railroads were not governed by the ICC (at the time), they were privately negotiated between carriers.  When Michigan Northern Railway took over an ex-PRR line between Mackinaw City, MI and Grand Rapids, MI, it inherited by adoption (as required by the ICC) "all rates, routes and divisions".  This occurred on April 1, 1976, the same day Conrail started up.  Because MIGN had a connection with the Soo Line via the carferry Chief Wawatam at Mackinaw City, we had a gateway connection between the Western Territory and the Eastern Territory.  Chicago was another gateway.  After developing a fair amount of overhead traffic by declining to participate in an Ex Parte increase in freight rates during the Carter inflationary era, MIGN had to contact lots of railroads to get copies of division sheets.  Some were from a long undisturbed file apparently.  They had a musty odor and the division percent was hand written in ink in a Spencerian hand.  Partial deregulation in 1980 freed the railroads to renegotiate and/or cancel divisions.  Consolidation into the big six, BNSF, CN, CP, CSX, NS, and UP was one of the results.
Alex Huff, an incorporator of MIGN.                    

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