"Satisfied that all highway traffic has stopped, the engineer pulls out the throttle, and the engine emits a belch of black smoke in response. Note the cars that follow: a trio of tanks, a flat loaded with farm machinery and two boxcars. Bringing up the rear are four big covered hoppers boldly advertising the Tuscola & Saginaw Bay Railway as their owner." -Railfan & Railroad
After declining revenue from passengers and the depletion of the forests to the south and east of Bay City, the New York Central's agricultural industries were what kept it going. The Penn Central merger in 1968 did not do anything to improve the sagging health of the line. Service began to deteriorate drastically after the Penn Central bankruptcy in 1970, but the line continued to run on other freight traffic there was to be had and the agriculture business.
On 1 April 1976, the USRA transferred ownership and operation of the line to the GTW and the D&M. The GTW was also offered 21 miles of trackage from Munger through Vassar to Millington, a 22-mile branch from Vassar to Colling, and a 9-mile branch from Harger to a connection with the Munger-Vassar line at Denmark junction. The GTW refused this offer because they felt the line would not be profitable if they took over.
Taking note of the early success of the Hillsdale County railroad in southern Michigan, several industries and grain elevators on the affected lines assembled and formed the Tuscola & Saginaw Bay Railway Company. The businesses that organized the T&SB (TSBY-reporting marks) supplied enough money to buy stock in the new company which would operate by its shipper-owners on track leased from the Penn Central "estate". The Michigan State Transportation Commission agreed to subsidize the anticipated losses to assure the funds required for regular service.
The original T&SB system operated 54 miles of trackage through it's three namesake counties in central Michigan. Since beginning operations in 1977, the TSBY has been expanding its services to online grain elevators and other industries.
1 October 1977, the TSBY officially took over the responsibility for operations from Conrail on the lines from Munger through Vassar to Millington, plus the branch from Vassar to Colling. The line from Denmark Jct. to Harger was transferred to the GTW, with Denmark Jct. being established as the freight interchange point with the GTW. 3 October 1977, after on dedication services in Vassar, the first T&SB train for Caro and Colling departed behind leased GTW GP9 4900.
On 1 October 1977, the TSBY already had some of its fleet of covered hoppers on line for use by elevators ready to begin shipping corn, beans, wheat, and soybeans. The first of the hoppers, numbered 3000, was painted golden yellow with the name spelled out on the side. The TSBY established its headquarters in Vassar and chose the 1890 Michigan Central passenger depot there for the main office. Much work was needed to renovate the depot for use by the TSBY.
The GP9s rented from the GTW were used until the engines on order could be delivered. The first to arrive on the property in December 1977 was NW2 1977, named Big Chief. This EMD switcher, formerly UP 1034, was rebuilt and upgraded to 1200 HP at rock Island's Silvis shop. The second locomotive to arrive was ALCO RS1 2394. It was named Corkpine Express and arrived in January 1978. Originally built in 1951 as Rutland 402, it was chopnosed by Southern Rail Inc.
With a good reception from shippers, the T&SB was able to develop a steady increase in traffic volume. In a very short amount of time, the original fleet of covered hoppers was inadequate for the amount of business and the TSBY began investigating financing for additional cars. When spring of 1978 arrived, the TSBY was able to offset the slackening of agricultural outbound shipping by bringing agricultural chemicals. The biggest annual customer for the TSBY is Michigan Sugar Company at Carol. Locally grown sugar beets are processed at the plant and the products (molasses, sugar and beet pulp) are shipped out by rail. The plant also requires a steady shipment of coal, and regular movement of Kentucky bituminous.
When track maintenance was finished, the T&SB raised speed limits to 50 mph. This allowed trains to safely move over the entire system and provide service to customers on all three lines on the same day. This was a welcome change, as business was continually growing.
During the summer of 1979, the TSBY took delivery of 50 ACF covered hoppers, painted with the same light yellow and black style lettering that was used on engine 1977. Another group of covered hoppers was built by Richmond Tank Car in Houston, TX, and delivered to the T&SB in 1980. These last 50 cars are painted grey and lack the big lettering of the ACF hoppers. The rest of the freight fleet includes and insulated boxcar of reading ancestory and 11 refrigerator cars that originally were owned by American Refrigerator Transit. The boxcar and reefers were purchased to protect traffic from Dykhouse Pickle Co. of Vassar.
In March 1982, 2394 threw a rod and was forced out of service. Since 1977 was on lease to Kent-Barry-Eaton Connecting, a replacement had to located. On 25 March 1982, the TSBY purchased ALCO RS2 466 from the D&M. (this locomotive has an interesting history. for more click here.)
In May 1982, the TSBY began operating unit trains for grain products. The TSBY would collect the seperate cars from the differnt companies it served and assemble them into a unit train, which lowered the car rates.
On 1 October 1982, the TSBY signed a 1-year contract with the Michigan State Transportation Commission and began operating 124 miles of the Ann Arbor Railroad. The tracks extend from Osmer to Alma, and from Owosso to Swan Creek. The Michigan Northern operates from Alma to Frankfort and the Michigan Interstate operates from Osmer south to toledo.
The old AA's GP35s are used by the TSBY to operate these lines. To handle the increased traffic on the new lines, more covered hoppers were leased from Chicago Refrigerator Dispatch and renumbered in the 8700 series. The activity on the Ann Arbor Division is subject to shipper demand, so the schedule is often changed to meet their needs.
The T&SB has become involved with a steam engine rebuilding project. The TSBY provides an indoor home for Pere Marquette 2-8-4 1225 in an Ann Arbor backshop that is not in the way of TSBY operations. (a link for Project 1225 can be found here)
*Most of this was taken from an old Railfan & Railroader magazine.
The Huron & Eastern and the Saginaw Valley now operate the original TSBY trackage. The TSBY still operates the Ann Arbor Division.
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