The Minneapolis & St. Louis Railway was created on May 26, 1870 by a group of Minnesota investors interested in establishing a railroad connection between Minneapolis and the agricultural regions to the south. Minneapolis was home to the largest flour milling operations in the country at that time. Wheat was the primary commodity grown in southern Minnesota and Northern Iowa.

The Toledo, Peoria & Warsaw Railway was chartered in 1863, and opened in 1868 from the state line at Indiana across Illinois to the Mississippi River at Warsaw. This line was reorganized as the Toledo, Peoria & Western Railroad in 1880 and leased to the Wabash, St. Louis and Pacific Railway.