The Indiana Rail Road Co.

• Author: Partington, Marta
• Position: Regional railroad company - Includes related article on a dining train - Company profile

A third-generation railroadman joins Indiana's rail revival.

For years, entrepreneurs dreamed big dreams about the resurgence of the rails in this country, but their dreams fizzled and died as the railroads disintegrated. Bad tracks, bad management and government regulation all contributed to the demise of the industry. So why would anyone in his right mind attempt a revival of the railroad system, especially in indiana?

Thomas G. Hoback, president and CEO of Indiana Rail Road Co., makes a good case for the return of the regional railroad. In fact, he's staked his life on it, or at least his money and venture-capitalist money. What makes Hoback so sure he can pull off what other financiers found to be a hopeless case? For one thing, the railroad business is in his blood.

Hoback, 42, grew up in the industry. His father spent more than 50 years working on the Atchison, Topeka & Santa Fe Railroad, finally retiring in 1976. Even further back, his grandfather was head of one of the big shops that repaired locomotives for the Burlington Route.

Hoback himself knew as early as high school that he wanted a career working on the railroad. ignoring a high-school guidance counselor's advice, Hoback attended Golden Gate University in San Francisco, where he pursued a major in transportation and a minor in economics.

Hoback started his railroad career with the Western Pacific Railroad working in marketing and cost analysis. In 1977, he moved back to the Midwest, joining the illinois Central Railroad in Chicago. When Conrail formed in 1976, many railroads were sold off or abandoned. At that time, Hoback pursued the idea of buying his own railroad. He did his homework first, looking at 75 or 80 different railroads.

"I was looking for a property for a strong regional railroad with a substantial amount of growth potential," recalls Hoback. "It had to have a good existing volume, but one which could develop more business. About that time, the illinois Central wanted to abandon this line and concentrate on its main line between Chicago and St. Louis. I pursued negotiations with them, but the Federal Railroad Administration offered them a large grant of several million dollars. They took the money to renovate the track and decided not to sell. Instead they offered me a position in marketing."

Hoback took the position and bided his time. Finally, he approached management in the early 80s and in late 1985 struck a deal to purchase 117 miles of track stretching...