An important factor in the development and material progress of Montgomery County has been the railroads, which the energy and enterprise of her people have secured. No history would be complete which omitted mention of this interest, and the marvelous changes it has wrought. In 1848, in the early days of railroading in Indiana, the legislature of this state granted to a corporation, the main projectors of which resided at New Albany, a charter allowing it to construct a line of railroad "from New Albany to Salem, and thence to any other point or points in the State of Indiana." The organization effected under this charter, constructed the road from New Albany to Salem, a distance of thirty miles. It was completed in 1850, only two years after the undertaking was begun. The illiberality of the legislature toward railroad enterprises at this period, and the reluctance with which it granted charters for them, paradoxical as the statement may seem, were the means of securing to Montgomery County a railroad much sooner than would have been the case had the legislation respecting them been of a more friendly character. The Michigan Central railroad was, at this time, earnestly but successfully petitioning the legislature for a charter granting it the right to extend its line around the shore of Lake Michigan through this state to Chicago. Baffled in its attempt to secure this privilege, the Michigan Central found in the liberal provision of the New Albany & Salem charter, as quoted above, a solution of what had been a hard problem. This company at once began to agitate the extension of the New Albany & Salem railroad from Salem to a point on Lake Michigan. In the final accomplishment of this design the Michigan Central obtained relief from its embarrassment. Under the impetus given to the enterprise by its aid and liberal subscription to the stock, work was immediately begun on the northern end of the road, and soon afterward on the entire line. In 1850 the citizens of Crawfordsville and Montgomery County organized a company for the construction of the Crawfordsville & Wabash railroad, a line projected from Crawfordsville to La Fayette, a distance of twenty-eight miles. The construction of this road was exclusively a Montgomery county enterprise. The county commissioners subscribed for $100,000 of the capital stock, and issued bonds for its payment. The enterprise met with many obstacles, not the least of which was the determined opposition made by La Fayette. This thriving young city looked with extreme disfavor on the establishment of a rival trade center with shipping facilities equal to her own, and in the midst of a territory hitherto monopolized by her merchants. The enterprising tradesmen of La Fayette with their own funds built a plank road, which has long since rotted away, from that city to within one mile of Crawfordsville, hoping thereby to retain the very profitable trade which they had built up with the people of Montgomery County. But, notwithstanding this organized opposition, the railroad was pushed rapidly forward to completion. An organization had been effected by the election of Major L C. Elston as president, and Alexander Thomson as secretary. To the large executive ability and untiring industry of these two men, in a great measure, was due the success which eventually crowned the enterprise. The Crawfordsville & Wabash railroad was completed to La Fayette in 1852. About three years later it was consolidated with and became a part of the New Albany & Salem railroad, the name of which was afterward changed to that which it now bears, the Louisville, New Albany & Chicago railroad. In 1859 the entire road was completed, and a train of cars ran through from New Albany to Michigan City. The county never realized anything from the $100.000 of stock subscribed to the Crawfordsville & Wabash road, and' the amount may be put down as a donation to the company.

Source: History of Montgomery County, together with historic notes on the Wabash Valley By Hiram Williams Beckwith, P. S. Kennedy, Davidson, Thomas Fleming