Cincinnati Southern Railway
Cincinnati is the only municipality in the United States to own an interstate railroad.
The story of that railroad began before the Civil War when Cincinnati was a major destination for steamboats. However, after the war, it was more economical to ship to the South via Louisville instead of Cincinnati because of the newly built Louisville & Nashville (L&N) Railroad.
Since there was no rail line connecting Cincinnati to the Deep South, the city's leaders decided to build one.
An Ohio law enabling the creation of the Cincinnati Southern Railway was enacted May 4, 1869. A resolution was adopted designating Chattanooga as the southern terminus one month later.
The Cincinnati Southern Railway was intended to expand the economy of Cincinnati.
Construction of the railroad was a huge engineering task. The 336-mile rail line was built through rugged terrain, which included 27 tunnels and 105 bridges.
Understanding that it would be difficult for a city to run a railroad, it was decided that the line would be leased to a rail operator. In October 1881 a lease was awarded to the Cincinnati, New Orleans and Texas Pacific (CNO&TP) Railway. In 1893, the CNO&TP came under the control of the Southern Railway and, as a result of a subsequent merger, now Norfolk Southern.
The city receives over $20 million a year from Norfolk Southern for the lease. The proceeds from the lease are dedicated to city infrastructure projects, so designated in the 1980s by recommendation of the Smale Commission.