The Chicago and North Western was a Class I railroad in the Midwestern United States. It was also known as the "North Western". The railroad operated more than of track at the turn of the 20th century, and over of track in seven states before retrenchment in the late 1970s. Until 1972, when the employees purchased the company, it was named the Chicago and North Western Railway (or Chicago and North Western Railway Company).

The C&NW became one of the longest railroads in the United States as a result of mergers with other railroads, such as the Chicago Great Western Railway, Minneapolis and St. Louis Railway and others. By 1995, track sales and abandonment had reduced the total mileage to about 5,000. The majority of the abandoned and sold lines were lightly trafficked branches in Iowa, Illinois, Minnesota, South Dakota and Wisconsin. Large line sales, such as those that resulted in the Dakota, Minnesota and Eastern Railroad, further helped reduce the railroad to a mainline core with several regional feeders and branches. Union Pacific (UP) purchased the company in April 1995 and integrated it with its own operation.

History 1859 to 1968 The Chicago and North Western Railway was chartered on June 7, 1859, five days after it purchased the assets of the bankrupt Chicago, St. Paul and Fond du Lac Railroad. On February 15, 1865, it merged with the Galena and Chicago Union Railroad, which had been chartered on January 16, 1836. Since the Galena & Chicago Union started operating in December 1848, and the Fond du Lac railroad started in March 1855, the Galena and Chicago Union Railroad is considered to be the origin of the North Western railroad system. Other lines acquired and added to the network included the Chicago, St. Paul and Fond du Lac Railroad in 1859, the Winona and St. Peter Railroad in 1867, the Chicago, Milwaukee and North Western Railway in 1883, the Sioux City and Pacific Railroad in 1880, the Fremont, Elkhorn and Missouri Valley Railroad in 1884, and the Milwaukee, Lake Shore and Western Railway in 1893. They also held extensive property in Michigan, particularly its Upper Peninsula, to the point where they were one of the largest property owners in the state. By 1899, the company had rostered 1,380 locomotives, 1,176 passenger cars, and 49,484 freight cars.

The first repair facilities for rolling stock were located along the Chicago River near the center of Chicago, but these were abandoned for a more extensive, 240-acre plot of land to the west along West Kinzie Street. The facilities were expanded in 1900 and became known as the 40th Street Shops, which at that point included three roundhouses, extensive locomotive overhauling capabilities, and a complete set of passenger and freight car shops. These shops served the eastern section of the CNW system. Meanwhile, the western section was served by back shops in Clinton, Iowa and the northern section was served by facilities in Winona, Minnesota. In 1911 a new freight yard and shops were built 13 miles west of Chicago in Proviso Township, which featured a mammoth, 58-stall roundhouse (a twin of the one in Fulton, Illinois).

Changing traffic patterns and competition with automobiles and trucking disrupted the railroad's profitability by mid-20th century. After nine years in bankruptcy, the CNW was reorganized in 1944. It had turned rapidly to diesel power, and established a huge diesel shop in Chicago. Its Proviso Freight Yard, located west of the city center in suburban Cook County, was constructed between 1926 and 1929 and remained the largest such in the world, with 224 miles of trackage and a capacity of more than 20,000 cars.

Potatoes from the west were one of the main crops carried by the CNW, and its potato sheds in Chicago were the nation's largest. It also carried western sugar beets and huge amounts of corn and wheat. This road, like other lines depending strongly on transportation of crops, was adversely affected by government agricultural credit policies, which sealed a lot of products on the farms where they were produced. Although it stood sixteenth in operating revenue in 1938, it was eighth in passenger revenue among American railroads. It served Chicago commuters; its 400 streamliners provided intercity transportation, and it provided an eastern link to bring the Union Pacific's passengers from Omaha, Nebraska, and points west to Chicago.

The CNW had owned a majority of the stock of the Chicago, St. Paul, Minneapolis and Omaha Railway (Omaha Road) since 1882. On January 1, 1957, it leased the company, and merged it into the North Western in 1972. The Omaha Road's main line extended from an interchange with the North Western at Elroy, Wisconsin, to the Twin Cities, south to Sioux City, Iowa, and then finally to Omaha, Nebraska.

The CNW acquired several important short railroads during its later years. It completed acquisition of the Litchfield and Madison Railway on January 1, 1958. The Litchfield and Madison railroad was a bridge road from East St. Louis to Litchfield, Illinois. On July 30, 1968, the North Western acquired two former interurbans—the Des Moines and Central Iowa Railway (DM&CI), and the Fort Dodge, Des Moines and Southern Railway (FDDM&S). The DM&CI gave access to the Firestone plant in Des Moines, Iowa, and the FDDM&S provided access to gypsum mills in Fort Dodge, Iowa.

On November 1, 1960, the CNW acquired the rail properties of the Minneapolis and St. Louis Railway. In spite of its name, it ran only from Minneapolis, Minnesota, to Peoria, Illinois. This acquisition provided traffic and modern rolling stock, and eliminated competition.

1968 to 1984 On July 1, 1968, the Chicago Great Western Railway merged with the North Western. This railroad extended between Chicago and Oelwein, Iowa. From there lines went to the Twin Cities, Omaha, Nebraska, and Kansas City, Missouri. A connection from Hayfield, Minnesota, to Clarion, Iowa, provided a Twin Cities to Omaha main line. The Chicago Great Western duplicated the North Western's routes from Chicago to the Twin Cities and Omaha, but went the long way. This merger provided access to Kansas City and further eliminated competition. After abandoning a plan to merge with the Milwaukee Road in 1970, Benjamin W. Heineman, who headed the CNW and parent Northwest Industries since 1956, arranged the sale of the railroad to its employees in 1972; they formed Northwest Industries to take over the CNW in 1968. The words "Employee Owned" were part of the company logo in the ensuing period. The railroad was renamed from Chicago and North Western Railway to Chicago and North Western Transportation Company. The railroad's reporting marks (CNW) remained the same.

After the Chicago, Rock Island and Pacific Railroad (Rock Island) ceased operating on March 31, 1980, the North Western won a bidding war with the Soo Line Railroad to purchase the roughly "Spine Line" between the Twin Cities and Kansas City, Missouri, via Des Moines, Iowa. The Interstate Commerce Commission (ICC) approved North Western's bid of $93 million on June 20, 1983. The line was well-engineered, but because of deferred maintenance on the part of the bankrupt Rock Island, it required a major rehabilitation in 1984. The company then began to abandon the Oelwein to Kansas City section of its former Chicago Great Western trackage, which duplicated Spine Line service.

1985 to 1995 In 1985, the CNW Corporation was formed to take over the Chicago and North Western Transportation Company; the employee-owned stock of the Chicago and North Western Transportation Company was transferred to the new CNW Corporation.

In 1988, the Blackstone Capital Partners formed the Chicago and North Western Acquisition Corporation to purchase the CNW Corporation; the CNW Corporation was acquired by Blackstone Capital Partners under the Chicago and North Western Acquisition Corporation subsidiary from the employee owned stock; Blackstone Capital Partners controls the CNW Corporation and the Chicago and North Western Transportation Company under the Chicago and North Western Acquisition Corporation subsidiary. Chicago and North Western Holdings Corporation (or "CNW Holdings Corporation" and "Chicago and North Western Holdings Company") was formed and took control of the Chicago and North Western Acquisition Corporation, which controlled the CNW Corporation and which the CNW Corporation controlled the Chicago and North Western Transportation Company.

The Chicago and North Western corporate structure under the Blackstone ownership: Chicago and North Western Holdings Corporation Chicago and North Western Acquisition Corporation CNW Corporation Chicago and North Western Transportation Company (formerly Chicago and North Western Railway) In 1993, several of the C&NW's routes became flooded by that year's Great Flood, which also affected other railroads that operated in the Midwest. The first routes on the C&NW to be flooded were the routes south of St. Paul, Minnesota. Ten miles of their line between North Freedom, Baraboo, and Devil's Lake were also flooded, and it isolated the C&NW's quarry supply in Rock Springs (a vintage diesel switcher from the nearby Mid-Continent Railway Museum assisted the Rock Springs quarry, until the flood cleared). During July, the C&NW's dry mainline through Iowa also became flooded. Upon learning about the flooding, some C&NW employees called into work during their time off, in order to help the railroad through the flood. By the time the flood ended, most of the C&NW's rail lines remained intact and were quickly reopened.

In February 1994, the Chicago and North Western Acquisition Corporation and the CNW Corporation merged into the Chicago and North Western Holdings Corporation, leaving only the Chicago and North Western Holdings Corporation and the Chicago and North Western Transportation Company. In May 1994, the Chicago and North Western Transportation Company reverted to its original name, Chicago and North Western Railway and the Chicago and North Western Holdings Corporation was renamed to the second Chicago and North Western Transportation Company.

The Chicago and North Western corporate structure: Chicago and North Western Transportation Company (formerly Chicago and North Western Holdings Corporation) Chicago and North Western Railway (formerly Chicago and North Western Transportation Company)

In April 1995, the Union Pacific Corporation acquired the former Chicago and North Western Holdings Corporation (the second Chicago and North Western Transportation Company) under subsidiary UP Rail, Union Pacific controls the former Chicago and North Western Holdings Corporation (now the second Chicago and North Western Transportation Company) and the Chicago and North Western Railway (formerly the first Chicago and North Western Transportation Company) under UP Rail subsidiary.

The Chicago and North Western corporate structure under Union Pacific ownership: UP Rail Chicago and North Western Transportation Company (formerly Chicago and North Western Holdings Corporation) Chicago and North Western Railway (formerly Chicago and North Western Transportation Company)

The Union Pacific Corporation merged UP Rail into Union Pacific and then merged the second Chicago and North Western Transportation Company and the Chicago and North Western Railway into the Union Pacific Railroad; the Chicago and North Western system became part of the Union Pacific Railroad system. A joint UP-CNW subsidiary, Western Railroad Properties, Inc., was also merged into the Union Pacific system in the acquisition.

Post-CNW