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Dakota Minnesota & Eastern a Modern Granger Railroad by Cummings & Huddleston
Dakota Minnesota & Eastern a Modern Granger Railroad by Andy Cummings and Jerry Huddleston
Soft Cover
Copyright 2005 FIRST PRINTING
136 pages
CONTENTS
Introduction 7
Acknowledgements 9
Chapter I - A Granger Legacy 11
Chapter II - Business, Politics and Survival23
Chapter III - Making Tracks of Their Own 47
Chapter IV - A Leap of Faith81
Subdivisions
Waseca 99
Tracy 103
Huron 107
Huron Terminal 111
Pierre 113
Pierre - Rapid City 117
Black Hills 121
Branch Lines 125
Motive Power Roster 129
Bibliography 135
About the Authors 136
The CEO of any organization is its public face, a role Pete McIntyre and I have been privileged to share over the course of DM&E's history. But I think it is safe for me to speak for both of us in admitting how little we have had to do with its success. The same can be said of the IC&E's relatively short, but equally colorful and successful history. It is the employees of the combined system (DM&E and IC&E), and its faithful customers and committed owners, who have come through time and time again to force success in the face of overwhelming odds that dictated failure a dozen times over. DM&E and IC&E are sister railroads, jointly served by Cedar American Rail Holdings. Combined, they are a single system that has grown remarkably over the years, and yet has been able to retain its small family feel.
The story of this railroad system is a powerful one. It's about more than beating the odds. It's about the positive influence of politics on public policy. It's about true entrepreneurial risk and the vision to see it through. But mostly it is about family. Hundreds of people came together to first save an important service that would have been lost, and then turn it into a success no one imagined.
When the authors originally called for an interview, my first reaction to a book about the history of the DM&E was to encourage them to expand it to include the IC&E, and to the Powder River Basin project that is so important to both railroads. Each would be a compelling story in itself. I hope the contribution of this book encourages further development of the overall story, and how all those pieces come together. The IC&E acquisition and start-up was one of the longest, most difficult and ultimately rewarding challenges in which I've ever been involved. By focusing on the DM&E, the authors have established a solid base in our history that I hope will be built upon by others in future years. In the course of the authors' questioning, I learned things about our company that even I did not know. I think this project will be well served by the authors' detailed knowledge of and genuine interest in railroads generally, and this company in particular.
This is the early story of a railroad that - by all logical accounts shouldn't be here today. The former Class I owner (C&NW) would have been given permission to abandon what is now part of the DM&E in 1983 but for a series of fairly accidental political twists of fate, and the commitment of a former boss and enduring friend, Senator Larry Pressler. From my vantage point on his staff during those years, it is also obvious to me that we were extremely fortunate that C&NW's desire to abandon this line coincided with the apparent determination of the Interstate Commerce Commission (today's Surface Transportation Board) to be something other than a rubber stamp for rail line abandonments in this country. The former chairman of that agency, Reese Taylor, and its government affairs director, Bruce Hatton, were particularly instrumental in reshaping the federal government's role in dealing with the human impact of abandonments. Jerry Conlon, one of the smartest adversaries-turned-friends I've ever known, was a critical transitional figure who helped sort through the vague realities of politics and translate them into the specific realities of the business world.
The owners who invested in this risky venture and their representatives on its Board have stood by this company throughout its tentative history, investing and reinvesting in its employees and infrastructure with a long-term view instead of shortsighted slash-and-run tactics that sometimes give corporate America a black eye. They stuck with a vision when fainter hearts would have pulled up the spikes years ago. There is true irony in the old speculation that they were buying DM&E for scrap steel when the company was first formed. No group could have demonstrated a truer commitment to make this venture a success for the long run. To date, they have reinvested every nickel of profit in the company's infrastructure and its employees, and have yet to pay themselves their first dividend check. The communities, shippers and employees who rely on this system are fortunate it is in the hands of good stewards.
Our shippers have demonstrated a shared faith in this enterprise by staying loyal to us throughout, investing and believing in us to help build a stronger infrastructure and secure future. One of the early selling points for converting Class I branch lines into short lines was the smaller railroad's ability to grow the business through closer personalized customer contact. DM&E's history emphasizes that characteristic through our tailored customer service and marketing outreach. Our customers know us and we know them well. The business has grown through a mutual commitment and a personal touch that cannot be duplicated in a modern Class I organization. The customers are the reason for this company. They are a good reason for being.
But it is the employees who have breathed life into this rail system, and who have willed it to survive with their endless capacity to go on -even in the toughest of times. Both DM&E and IC&E employees have seen their respective properties through extraordinarily difficult periods, and have been the key in this enterprise of bringing them together. I am exceedingly proud to work for them. They are a daily inspiration and example to me. Through droughts and fires and explosions and bankruptcies and human tragedies, they are always there, pulling together, refusing to give up the ship, ready to do whatever it takes to keep it afloat and make whatever steam necessary to move it forward. My daughter and frequent advisor, Brooke, approvingly reflects on how much time I spend on employee issues. She has come to appreciate at an early age that it is people who make a difference between a company's success and failure. We have been blessed with the best.
As we continue to grow, the single biggest challenge I see for our company is to figure out how to keep the family "smallness" that has been so critical to our success to date. We succeeded where a Class I could not because we are a close knit family - customers, employees, owners and supporters. My background from a large family - led by the example of an extraordinary mother - taught me life lessons about drawing strength from mutual reliance and trust, with accountability to each other and for ourselves. Through bliss and bickering we remain a family who can depend on each other. That is the kind of atmosphere we will work hard to maintain within our professional railroad family as we grow and expand in the years to come.
I have been blessed with many rewarding jobs in my life - none more so than working for this company and with this group of people. We are proud of our accomplishments and the fact that others are taking note of our quiet success on the prairie. These are exciting times in an exciting company. I am hopeful that the history shared in this book will not only allow us to reflect with pride on our past, but will help us all to take stock and gain perspective in how best to achieve the promise of our future.
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