For decades, the primary mode of transportation in the United States was the railroad. The iron horse brought goods, passengers, and civilization to parts of the country that were otherwise unreachable. On into the middle of the 20th century, railways pumped lifeblood into communities.

With the completion of the interstate highway system, however, 18-wheelers became the preferred mode of transportation for products as automobiles became the way to move people. Miles of track lay virtually unused, towns that once benefited from the bustle of railway traffic waste away as the interstates passed them by.

As other railways faded with the glory of their era, one company stayed on and continued to provide an east to west connection across the state. Since 1878, the Columbus and Greenville Railway has served towns throughout north central Mississippi, providing railway service with an emphasis on service.

John Berry, purchasing manager with USG Interiors of Greenville, said, "C&G has good customer relations and provides good service. They are in tune with their customers and responsive to their needs. Through our business, I work with larger railroads throughout the country, but I prefer to work with C&G."

From its inception, the C&G Railway was in private hands being owned from the 1920s to 1972 by the Stovall family. In 1972, the line became part of the Illinois Central Gulf Railroad.

President and CEO of C&G Railway Roger Bell said, "When the railroad was bought by Illinois Central Gulf, it was controlled by folks from Chicago and did not serve the interests of the local communities. In 1975, local shippers and employees who had been involved with the railroad made an effort to save it and we purchased it back from Illinois Central Gulf."

By regaining local control, C&G was able to be more responsive to the needs of its shippers and that local touch means a great deal to the people served by the railway.

Vice President and General Manager of Cooperative Elevator of Greenwood Lester Shipley, said, "C&G is very important to us in our connections to the west and east. Because they are locally owned, they show more interest in their customers and remain close to our operation."

In 1987, railway’s management and Board of Directors formed a holding company named CAGY, Inc. The C&G stock was tendered to the CAGY in an effort for the company to diversify and strengthen its position in the transportation field.

Since that time, CAGY Industries has acquired two additional railroads that are wholly owned subsidiaries. Chattooga and Chickamauga Railway, that runs 67 miles from northwest Georgia to Chattanooga, Tennessee, which was created in 1989 and carries chemicals, latex, and plastic pellets which are predominantly used in the carpet-making industry.

In 1996, CAGY bought the Luxapalila Valley Railway that runs 35 miles from Columbus, Mississippi, to Belk, Alabama. This railroad carries a great deal of forest products with Georgia Pacific and Weyerhaeuser being its largest customers along with a timber and pole treating facility.

"We created these two lines in an effort to diversify the markets served. These systems are not dependent on agriculture, as is the C&G. They have worked out very well and have complimented the C&G operation," Bell said.

The C&G is heavily dependent on the agriculture industry in Mississippi with a large portion of its business coming from the Delta. According to Bell, with the exception of one company, the railway’s five largest shippers are agriculturally-related businesses.

The commodities shipped include rice and rice mill products, cotton seed and meal products, and grains for catfish feed and hog feed ingredients. The largest shipper on the line is USG Interiors out of Greenville that receives raw materials to be used in production of ceiling tiles.

The railroad industry had greatly decreased into the late 1970’s and early 80’s. But with the passage of the Staggers Act, which allowed for deregulation, and the near saturation of the interstate system, the industry received its second wind. The revitalization has been successful over the last 10 to 15 years, so much so that in 1996 the industry handled a greater percentage of the nation’s freight than ever before in the recent history.

"Because of deregulation," Bell said, "the large railroads could sell off their less-profitable lines to short-line operators that could run them in a more profitable manner and run them with the shippers’ and local communities’ best interests in mind."

Even with the good that is taking place in the industry, the fact remains that railroads are expensive to operate and maintain.

"There are 3,100 cross ties in every mile, each one costing approximately $32. In the case of the C&G, most streams run north and south and the railroad runs east and west, therefore there are many bridges to cross and bridges are extremely expensive to maintain. But, even with the high costs, there are bright spots for the industry in Mississippi," Bell said.

"The state has done well in recruiting new jobs and industries that will help the existing shippers that we have. The highway system is nearing capacity, and this is a good opportunity for railroads that can offer good quality service. Equally important is that railroads are safe, fuel efficient, and are environmentally friendly; we have a good opportunity before us.

"We have been here a long time and the C&G has been through many struggles. The company has a vested interest in our communities, our employees, and stockholders. We have local ownership with a good management team and a Board of Directors made up of people who are focused on improving our physical plant for the long-term.

"In the last few years we have bought the most modern locomotives ever operated on the C&G and 220 railcars, adding to our fleet of 25 locomotives and 1100 railcars. We are doing things that make sense for the long run, not just for the immediate future," Bell said. DBJ

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Site last updated January 10, 1999.