Shenandoah Valley Railroad (1867–1890)

South of Harrisonburg, Virginia, a former part of the Norfolk Southern System a few miles west was a parallel line originally called the Valley Railroad.

The historic name of the once rival was adopted for the current privately owned intrastate Shenandoah Valley Railroad.

The line follows closely the great iron ore belt along the western slope of the Blue Ridge Mountains.

After Maryland approved construction of a bridge over the Potomac river anywhere between Harpers Ferry and Williamsport, the Pennsylvania Railroad (PRR) took notice.

The competing B&O wanted to divert the riches of the area to the port of Baltimore and expand into the south.

The major source of capital came from the sale of 6% mortgage bonds backed by the Pennsylvania Railroad.

Peter B. Borst was forced out because of his involvement with a competing plan for a similar rail line called the Luray Valley Railroad Company that was pushed through the Virginia General Assembly in 1870.

In August 1871, the Central Improvement Company submitted a proposal to cancel the construction contract, asking for payment only for work completed.

Problems with PRR escalated over the inability to obtain a traffic contract with the Cumberland Valley Railroad.

With Robert E. Lee as its spokesman, it convinced Baltimore to authorize $1,000,000 to secure funding by other Virginia counties.

In 1882, N&W made a deal with PRR to swap the SVRR share capital for N&W common stock.

A Roanoke judge put the line in a receivership, but in December, the mortgage company holding its notes filed suit for liquidation of the road’s assets.

The Norfolk and Western Railroad fought a legal battle for the next four years to regain control.

On September 30, 1890, the SVRR was reorganized as the Shenandoah Valley "Railway", with stockholders approval to sell to N&W.

On December 2, the Shenandoah Valley Railway acquired the rights to the franchise of the Washington and Western Railroad.