Detailed History: The Intermountain Rail System (1997, IRS) began life as the Red Creek Railroad in 1906. With the completion of the Canadian Pacific Railway in 1885, exploration had begun in earnest into the mountain ranges of interior British Columbia. Large deposits of bituminous coal were discovered along Red Creek, which were exploited almost immediately.

On June 25, 1902, the Red Creek Mine & Coal Company was officially opened as a subsidiary of the Alberta-based Crowsnest Coal Company. The first shipments of coal were initially routed by wagon to Revelstoke, where they were turned over to the CPR. As mining continued, however, it quickly became apparent that a more reliable means of transport would be necessary. The unpredictable mountain weather wreaked havoc on the already treacherous road, and it was often impassible for weeks at a time. Several loads of coal were lost when wagons became stuck or slid off the road into the valley below. At the end of the summer the mine was already flirting with bankruptcy.

Desperate for a solution, management began to explore the idea of constructing a railway line. The proposal was initially presented to the CPR as a branch line operation, but was turned down due to a dispute over financing. As the mine was the only industry in an otherwise remote location, CPR wanted the mine to pay for 45 percent of the construction costs of the line, but wanted all future trackage and industry rights. When their terms were refused, CPR backed away from the table, thinking that the mine would reconsider. Instead, plans were drafted for a standard gauge railroad to be built independently and operated as a subsidiary of the Crowsnest Coal Company. During the summer of 1903 the line was surveyed, financing was secured, and construction began immediately. Despite difficulties encountered in areas where rocky terrain required extensive blasting, work went relatively quickly and the line reached Revelstoke on November 7, 1904.

With a reliable transportation system in place, operations at the mine flourished and Red Creek grew considerably and became somewhat of a business center for the area. Settlements also sprang up at Summit and Blackwater, fueled by traffic from the line. Passenger service was introduced in April 1906, serving Red Creek, Summit, and Revelstoke. A branch line to Blackwater was completed later that year, and passenger service was provided via an exchange at Red Creek.

The completion of the Grand Trunk Pacific Railway in 1914 created an influx of new business to the area. Spurred on by the economic developments, the towns of Blackwater and Red Creek grew rapidly as several logging companies began to realize the potential for profit in the heavily forested interior ranges. Backed by a group of Vancouver businessmen, the Northwestern Logging Co. secured contracts to log the valleys of the Adams, Seymour, and Goldstream rivers. Immediately, the Crowsnest Coal Company met with Northwestern to discuss the idea of sharing the costs of extending the rail line from Red Creek north to the GTP line, exchanging near what is now Blue River. The idea was for the extension to serve the new logging camps while at the same time providing a bridge route between the two railways. Northwestern agreed to share construction costs on the condition that the completed railway would become its own corporate entity, run by a board of directors with representatives from both companies. The Crowsnest Coal Company was only too happy to comply. Representatives were chosen, and the position of chairman was given to J.A. Spencer, an Albertan with extensive experience in Railway development. The railway operations were formally reorganized on July 6th, 1914, and the name officially changed to the Monashee Central Railway.

Work on the new line went quickly and the exchange with the GTP was completed in May 1915. However, construction was not over. Red Creek and Blackwater were booming, with coal and timber demand skyrocketing due to the war effort. Though short, the bridge route proved a valuable time saver for shippers and was soon in high demand, with through traffic tripling almost overnight. In addition to the timber and coal production, smaller industries began to spring up in Red Creek and Blackwater. A sawmill was constructed near the logging camp of Lodgepole so Northwestern could save costs by cutting their own lumber instead of having to send the rough logs to Vancouver. The railway posted record profits in 1916 and 1917, and Spencer began to think big.

Opportunity knocked almost immediately. In 1918 the Canadian Federal Government assumed ownership of the Canadian Northern Railway, and the Grand Trunk Pacific faltered in early 1919 and went into receivership, ultimately falling under the control of the Federal Government. The Canadian National Railway Company was formed that summer, and began to consolidate by selling off disused and redundant trackage. Parts of the original Canadian Northern Main became available, as did several subdivisions of the GTP. Spencer acted quickly, snapping up the lines at minimal cost. Plans were drafted to graft the new lines into a new mainline across the Rockies, and to lay track eastward from the terminus of the Blackwater sub, through Howse Pass and down to Calgary.

Construction began on the eastern portion of the line in March 1921, Reaching Blackwater in October 1923. Work continued throughout the winter, constructing a second line in the Blackwater subdivision to join with the western section near Lodgepole and form a new main line. The western section was to prove somewhat more problematic. Work had begun simultaneously to tie together the lines purchased from GTP, but creating a viable route would require the blasting of several tunnels and surveying and preparation of nearly 400 Km of roadbed. The old Canadian Northern main would prove nearly useless, and was largely ripped up and relocated to bridge gaps in the new route. The line from Lodgepole to Horseshoe Bay was completed on June 20, 1924, and running rights negotiated with Pacific Great Eastern (now BC Rail) as far as Vancouver.

The effect was almost immediate. Traffic began to flow steadily in from the east, as the Monashee Central found itself in direct competition with CP and CN for the lucrative grain trade. Within 5 years, the railway had already recouped the cost of its construction and was turning a profit. Additional funds were gained by selling off the unused portions of the old GTP lines for scrap, and the profitable spurs were upgraded to handle the increased traffic.

Through smart management, the railway was able to make it through the depression relatively unscathed. World War II brought increased profits with the high demand for coal, and the railway purchased its first diesel locomotives in 1947. The last steam locomotive to run on the Monashee Central was retired on September 4th, 1962 and is now preserved at Lodgepole.

Passenger service declined gradually throughout the 1950s, and the Monashee Central entered into an equipment pool with CP and CN in 1958, which eliminated passenger service over the Calgary-Vancouver line. Passenger operations on the Red Creek line were scaled back but continued until 1977, when they were dropped entirely.

The 1970s were not kind to the Monashee Central. Both CP and CN continued to expand their interests, and it became clear that Monashee Central was losing the battle of what had come to be known throughout western Canada as “the big three”. Through traffic began to decline, and the on-line forestry and mining industries were caught in an economic roller coaster. Equipment and sections of track fell into disrepair, and several branch lines were abandoned. The bridge route between Revelstoke and Blue River continued to be profitable, but the line from Calgary to Vancouver became a financial albatross. Careful management kept the railway alive, but only seemed to postpone the inevitable. On April 13, 1981, the Monashee Central filed for protection from its creditors and declared bankruptcy. The Canadian Federal Government stepped in, taking control of the railway’s assets and dissolving the existing board of directors. Operations were ceased over the Calgary-Vancouver line and scaled back on the bridge route, running two trains a day in either direction.

In 1986 CP expressed interest in acquiring the bridge route, but the Federal Government was only interested in selling the railway system as a whole and the deal fell through. In August 1987, however, an agreement was reached when the Government sold exclusive trackage rights for the entire rail system to CP for roughly the same cost as buying the bridge route outright. The lines themselves remained Government property, but all railway assets, operating rights, and maintenance responsibilities were transferred to CP. CN immediately cried foul, claiming that the deal was an unfair form of Government subsidy and demanding that the matter be reviewed. An internal investigation was conducted and found the deal to be legit, but CN’s board of directors was incensed and took the matter to court. The dispute dragged on for over two years, until finally on July 6, 1990, the Supreme Court of Canada ruled in CN’s favor. CP appealed the decision but was rejected outright and railway operations on the former Monashee Central system were suspended on August 1st.

CP and CN met with the government several times over the winter to discuss the future of the ex- Monashee Central lines. In the end it was decided that CN and CP would share trackage rights to the Calgary-Vancouver main, as it was found that its grades and curves were gentler and more conducive to westbound traffic than either of their own main lines. The bridge route itself was to be operated by a new railway, of which ownership would be shared three ways. The Federal Government would retain 52% ownership, with CP and CN each holding 24%. The new railway was organized as the Canadian Rocky Mountain Belt, and operations begun over the bridge route on June 1st, 1991.

Fortune smiled on the new railway, as the newly-passed North American Free Trade agreement drove the price and demand for timber climbed back up. The Red Creek mine was purchased by Fording Coal and modernized extensively, and production increased as new contracts were secured overseas. CN and CP continued to share running rights over the old Calgary-Vancouver line, but the relationship was anything but harmonious. The two railways were constantly bickering over timetables and could not decide on an acceptable profit sharing agreement for the lineside industries. After their purchase of the Illinois Central, CN began to experience some integration problems and decided to simplify things by concentrating their western service on their own main line, dropping service altogether on the ex-MC main. In February 1996, CN sold their shares of the Canadian Rocky Mountain Belt to a Calgary consortium called Western Canadian Railways, spearheaded by southern Alberta businessman Adam Meeks. WCR approached the Federal Government with a proposal to privatize the once again profitable line, and in May 1997 the Government sold it’s remaining shares to WCR, giving them a 76% controlling interest in the railway. CP was very cooperative with the sale, and operations were officially transferred to WCR on June 30. A new board of directors was put in place, and Mr. Meeks assumed the position of Chairman. The railway changed its title once more, becoming the Intermountain Rail System on October 11th, 1997.