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At its meeting on February 16, 1961 the Board of Directors approved an arrangement under which this Company would acquire the stock interest then held by the Wabash Railroad Company in The Ann Arbor Railroad Company – 32,487 shares of common representing 99.96% of the outstanding common stock and 39,968 shares of preferred representing 99.92% of the outstanding preferred stock of that Company for a price of $3,000,000. Pursuant to this authority an agreement and purchase money obligation was executed by the President of this Company and the President of the Wabash Railroad Company on March 31, 1961. Application for requisite approval was made to the Interstate Commerce Commission on July 28, 1961 and a hearing was held at Toledo, Ohio on November 8, 1961 in connection therewith. The Commission decision is expected within a short time.¹

Mar. 22, 1961 ICC begins hearings on PRR control of LV; NYC and EL to oppose, fearing combination of PRR, LV, N&W, NKP, Wabash, DT&I and Ann Arbor. (MB)

July 28, 1961 Detroit, Toledo & Ironton applies to ICC to acquire control of Ann Arbor Railroad.

After 3:01 P. M. Tuesday, November 20^th, 1962, Lakeland will be discontinued as train order and telegraph office. Automatic Interlocking placed in service to govern movements over GTW crossing at Lakeland.

Ann Arbor Boat Company and Menominee and St. Paul Railway Company subsidiaries ceased operation November 30, 1958. Assets transferred to and liabilities assumed by parent company.

At hearing held on the Ann Arbor, DT&I merger, I.C.C. was told of improvements of $3 million planned. The Detroit, Toledo & Ironton Railroad will spend $3 million in improving service of the Ann Arbor Railroad if permitted to acquire control of the line and its subsidiary, the Manistique and Lake Superior Railroad Co., David Smucker, DT&I president, said yesterday.

He was one of 10 witnesses testifying at a hearing conducted by William J. Gibbons, Washington, and examiner for the Interstate Commerce Commission. The all-day hearing was held at the Chamber of Commerce.

Mr. Smucker said DT&I last February offered $3 million for the Ann Arbor which has 293 miles of tracks and runs between Toledo and Frankfort, and also operates freight car ferries to ports on the west side of Lake Michigan. The DT&I have 464 miles of tracks between Detroit and Ironton, Ohio.

The DT&I president emphasized that the Ann Arbor would be operated as a separate railroad if the ICC sanctioned its application. However, the general offices of the Ann Arbor would be moved from St. Louis, Mo., to Dearborn, Mich., headquarters of the DT&I. The Ann Arbor is owned by the Wabash Railroad, which has headquarters in St. Louis.

Although he did not directly oppose the deal, Richard L. Lyman, Toledo attorney representing the Railway Executives Association, Washington said he was concerned about protecting the rights of the employees involved if the sale is permitted. He said he feared some employees would be laid off, perhaps even affecting the Wabash.

Mr. Smucker said not more than half a dozen employees of the Ann Arbor would be laid off in event of merger.

Philip B. Carter, manger of the world trade and transportation department of the Toledo Area Chamber of Commerce, testified that the chamber's board of trustees had voted to support the DT&I's a plan to take over control of the Ann Arbor line.

"The chamber holds the firm belief this acquisition of control would strength the two rail carriers. Further, it is felt that rail service improvements on the two lines can be expected for shippers," Mr. Carter said.

Improvements of the Ann Arbor planned by Mr. Smucker include:

Expenditure of $1.5 million to complete replacement of Diesel locomotives put in service in the 1940's and 1950's with new engines.

Convert the coal-fired steam ferries to oil, which would increase their speed on Lake Michigan between Frankfort and Menominee, and Manitowoc, Kewaunee and Sturgeon Bay, Wis.

Spend $600,000 on the railroad line between Toledo and Frankfort in miscellaneous needed improvements.

O. C. Grimshaw, vice president-traffic for DT&I, emphasized in his testimony that fast overnight service would be provided between Frankfort and Toledo in each direction, operating six days a week.

The traffic official also testified that daily passenger train service between Toledo and Frankfort in each direction would be put in effect. There also would be supplementary local service, he said, on a turn-around basis between Toledo and Ann Arbor, and between Owosso and Clare, Mich.

The ICC hearing examiner said testimony would be studied and he expected to give a decision on the application in 45 days.^.2