The Chicago and North Western Transportation Company (C&NW) purchased the controlling interest in the Winona and St. Peter in 1867.

The 34th United States Congress passed a land grant act to the Territory of Minnesota for the purpose of constructing railroads on March 3, 1857.

[7][8][3] In response to the act, the Minnesota Territorial Assembly allocated lands for four rail projects in 1857,[1] with the Transit railroad among them.

[12] In 1867 the Chicago and Northwestern Railway Company purchased the controlling shares in the Winona and St Peter.

[12] Further railroad milestones were: Janesville, Minnesota, in 1870, St. Peter in 1871, New Ulm (via Nicollet and Courtland) in 1872, and the western boundary of the state in 1874.

[1] Towns established along these tracks provided a ready market for goods manufactured in Winona and channeled agricultural products into the city, spurring Winona's growth as an industrial and shipping hub from 1870 to 1900 and making it the third largest city in Minnesota for three decades.

[15] The completion of the Baraboo Air Line Railroad between Madison and Winona Junction meant that the C&NW had a through route from Chicago to South Dakota on home rails.

That route is the Dakota, Minnesota and Eastern Railroad (DM&E) subsidiary of the Canadian Pacific Railway.