The BH&W or Black Hills & Western was created by the Dakota, Minnesota & Eastern Railroad in 1992 as a subsidiary designed to operate the C&NW's Colony Line. CNW had filed to abandoned the line and DM&E immediately launched at the opportunity to buy the Colony Line. The Railroads announced a deal was made where the DM&E would buy the line for $6.2 Million. DM&E & C&NW officials thought highly of the deal. However in DEC of 1992 the C&NW scrapped the deal citing that the DM&E didn't have the financing and that the option to Buy the line had expired. The C&NW President at the time, said that after all the work they had put into the deal that they were angry that the DM&E failed to handle it. The DM&E eventually bought the Colony Line in 1996 when the C&NW was merged into the Union Pacific. The line was a island on the UP and the knew it. DM&E ran the first train 14 minutes after the deal with 4 out of the 6 ex CP rebuilt SD40-3's.
The Facts:
DM&E was supposed to pay $6.2 million for the branch line.
DM&E cleared budget for 12 new locomotives that they still bought when they officially bought it in 1996. (6 Rebuilt SD40-3's ex CP SD40's & 6 Rebuilt GP38-3's ex IC GP40's.)
DM&E didn't have the finances the first time to buy the line and make this subsidiary.
DM&E's option to buy the line ran out.
The Black Hills & Western - What Could Have Been...
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The Black Hills & Western - What Could Have Been...
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