This month’s Classic Trains featured fallen flag is the Michigan-based Ann Arbor Railroad which operated rail services from Toledo, Ohio to Elberta and Frankfort, Michigan, along with lake ferry service across Lake Michigan to Manitowoc and Kewaunee, Wisconsin and Menominee and Manistique in Michigan’s Upper Peninsula. Robert I. Warrick provides an outline of the history of the line:
The Ann Arbor Railroad was as much a steamship line as a railroad. Built from Toledo, Ohio, northwest to Frankfort, Mich., it existed for one reason — to move freight in car ferries across Lake Michigan to bypass Chicago. From 1910 to 1968, “the Annie” operated 320 car ferry route-miles versus 292 miles of railroad. AA was at the forefront of car ferry design and innovation, from the first wooden-hulled vessels to the most advanced car ferry to ever sail Lake Michigan.
During the 1940s, up to six ferries made the round trip from Boat Landing, as AA called its yard in Elberta on the south side of Frankfort harbor, to two Wisconsin and two Michigan Upper Peninsula ports. The boats ran year-round on a tight schedule, timed to match with three pairs of scheduled Toledo freights, where AA interchanged with five trunk lines. Well-kept 2-8-2s powered those short, fast trains across AA’s rolling profile until 1950, when Alco FA2s took over.
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The Eastern mergers of the 1960s ultimately doomed the old Ann Arbor. As planning for Penn Central went on, the Norfolk & Western merged with Wabash, Nickel Plate, and two smaller roads in 1964. N&W wanted no part of the Ann Arbor and its costly ferries, so AA was foisted off on DT&I, which was profitable by the 1960s.
With ICC approval, DT&I took over the Ann Arbor on August 31, 1963, and soon replaced the tired FA2s with 10 GP35s, riding on Alco trucks and painted in DT&I orange with large “Ann Arbor” lettering. DT&I’s GPs often mixed with the Annie’s.
DT&I had ferry Wabash refitted, changed her name to City of Green Bay, and loaned AA $2.5 million to rebuild Ann Arbor No. 7. The railroad renamed No. 7 Viking, lengthened it, installed four EMD 2,500 h.p. 567 diesels. But even with the bigger boats, capacity remained an issue as car sizes increased. AA was losing money. First the ferry route to Manistique, Mich. (and AA subsidiary Manistique & Lake Superior), was discontinued, then the one to Menominee, Mich.
Ann Arbor’s fate was sealed. A firm was hired to liquidate Pennsylvania Company assets, including AA and DT&I. Ann Arbor defaulted on the loan for the Viking on November 1, 1972, and filed for bankruptcy on October 15, 1973, leading to AA’s inclusion with other bankrupts in the Regional Rail Reorganization Act of 1973 that resulted in Conrail.