How a small timber railroad survived the collapse of the American industrial rail era
In short: The Escanaba and Lake Superior Railroad began in 1897 to haul timber in Michigan. While many regional lines vanished during the 20th century, this shortline survived by pivoting to boxcar leasing, strategic acquisitions of bankrupt competitors, and adapting to the shifting needs of the Upper Peninsula’s paper and mining industries.
Founded in 1897 to tap hardwood timber stands near Wells, Michigan, the Escanaba and Lake Superior Railroad (E&LS) initially served as a specialized logging line. By the early 1900s, it expanded its reach, connecting to major Class 1 carriers like the Milwaukee Road and the Chicago and North Western. This early integration allowed the railroad to diversify its traffic, hauling iron ore from the Groveland and Iron River mines to docks in Escanaba. However, the mid-20th century brought significant instability, including the 1937 termination of its lucrative ore-hauling agreement with the Milwaukee Road and a sharp decline in carloads following a 1969 strike at the Escanaba Paper Company.
The railroad’s most dramatic transformation occurred in the late 1970s. After being purchased by John Charles Larkin and his father in 1978, the E&LS attempted to stabilize its finances by entering the boxcar leasing market. When that market collapsed, the company pivoted again, acquiring vast stretches of track from the bankrupt Milwaukee Road, including the critical route to Ontonagon. This expansion was not without conflict; the E&LS faced stiff opposition from the Chicago and North Western and its former owner, Hanna Mining, but ultimately secured legal victories that allowed it to maintain its network. These acquisitions were bolstered by significant state and federal funding, which enabled the rehabilitation of neglected trackage to meet modern safety standards.
Today, the E&LS operates as a Class III shortline, managing a complex legacy of trackage that has seen both expansion and contraction. While it abandoned its northernmost route to Lake Superior in 2011 following the closure of a paper mill in Ontonagon, the railroad remains a vital link for regional industry, such as the LP Building Solutions plant in Sagola. Beyond freight, the E&LS maintains a unique cultural footprint through its private passenger excursions, which continue to run on select routes. By evolving from a simple timber hauler into a versatile regional operator, the E&LS has navigated the volatile landscape of American railroading for over 125 years.
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