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NewsSaturday, July 28, 2007 8:15 PM CDT
Cities, individuals benefit from $9.7 million railroad settlement
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BLOOMINGTON — About 20 years ago, Wally Furrow bought much of the abandoned Illinois Central Railroad line in the El Paso area. | Complete List (PDF) | Individual Claim Form (PDF) | Municipal Claim Form (PDF) | Corporation Claim Form (PDF)

Some of it ran past the grain elevators he owned, and he bought another 17 miles just because the railroad “offered it for sale.”

This December, Furrow will get back all the money he paid for the land — more than $100,000 — plus interest.

And he’s not alone.

More than 630 municipalities, individuals and companies who bought the abandoned railroad track will benefit from a $9.7 million settlement recently handed down in a case that has been tied up in court for 15 years.

The court found the railroad, which is now part of the Canadian National Railway Co., wrongly charged for the property it had received free through a federal land grant.

The city of Bloomington will get back about $74,000; Normal, $89,000; Minonk, $90,000; El Paso, $38,250; and Lostant, $20,000. Interest could add another 5 percent to each of those amounts.

El Paso City Clerk David Fever was surprised by the news.

“I didn’t know,” he said.

El Paso, like many municipalities, has turned the abandoned railway line into a trail system. In Bloomington-Normal, the land served as the beginning of Constitution Trail.

Furrow also was unaware of the lawsuit until about five weeks ago, when a Chicago attorney called him about the lawsuit.

“I hadn’t heard any more and it had been at least five weeks, so I thought it didn’t happen,” Furrow said Friday.

Darrell Woolums, a Decatur attorney who started the class-action suit in 1992, said few people or municipalities are aware of the settlement. But that’s about to change.

Woolums and Chicago attorneys Mike O’Rourke, Mitch Katten and Rick Linden will be sending letters to the original purchasers.

Legal notices also will be published in newspapers in municipalities along the former railroad line in an attempt to reach everyone.

Woolums said any unclaimed money will return to the railroad — something he doesn’t want to see after all his hard work.

He’s been involved with the issue since 1989, when he was an attorney for the village of Maroa and the railroad approached city officials about buying the former line that ran right through town.

“I looked at the title and saw the railroad got (the land) through a federal land grant,” Woolums said. “They were given every even-numbered section for six miles on either side of the railway. It was a lot of land — maybe as much as Rhode Island.”

Through further research, Woolums learned Congress adopted a policy in 1920 stating if a railroad abandoned the line and didn’t want the land back, municipalities could have it.

Woolums decided to file a class-action suit on behalf of the property purchasers the length of the line in Illinois.

“They put up a stiff defense,” Woolums said of the railroad. “We were at the appellate court nine times.”

Todd Greenburg, city attorney for Bloomington, was Normal’s assistant attorney when the town was negotiating with the railroad for the abandoned line in 1986.

“We questioned one title company very strongly (about having to purchase the land,)” he said. “We thought we owned it anyway.”

The title company insisted the town didn’t own it and Normal paid for the property that is now Constitution Trail.

“I’m so happy to get this money back to the people who were taken advantage of,” said Woolums.

Take a look
An Illinois Central Gulf Railroad signal still stands as part of the Atwood Wayside, on the Constitution Trail along Robinson Street at Monroe in Bloomington. Photos on July 27, 2007 Pantagraph/STEVE SMEDLEY
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Reader comments on this story - 15 total

Note: All views and opinions expressed in reader comments are solely those of the individual submitting the comment, and not those of the Pantagraph or its staff.

To YadaYada wrote on Jul 28, 2007 10:14 PM:

" The Illinois Central did abandon the line and pulled up the tracks and hauled the tracks and ties away. They then sold the land which they were given when the railroad was first put in. The railroads had already sold other adjoining land they were granted by the government as an incentive for building railroads through undeveloped areas. (The T. P. & W. was selling land for $2.50-$6.00 per acre in 1856 for land that bordered the railroad from Eureka to El Paso. They weren't allowed to sell the land until rail service was available.) The article also states that *municipalities* could get the land. I see nothing about private citizens being given the land, especially if it did not adjoin property they already owned. I doubt that we've heard the last of this one. "

Another Question wrote on Jul 28, 2007 6:17 PM:

" What would be more interesting to learn is how much did the attorney's make? "

To Questions wrote on Jul 28, 2007 6:04 PM:

" Why do I get the feeling that you work for the IRS? "

yo wrote on Jul 28, 2007 1:01 PM:

" bet the IRS gets into this and gets their share out of it. the 1920 railroad act said to give the land back to the original owner. those that are getting it now because the owner is not around from death, etc. the new owner is recieving a gift from the railroad and will most likely have to pay taxes on it. the judge is gone and "HERE COMES THE IRS" "

Bloomington/Normal wrote on Jul 28, 2007 11:31 AM:

" You had both better use this "found" money for the bike trail. None of that lottery magic the state used either for schools. This is extra money that can be used to fund and expand the trail. Will you do the right thing? "

Questions wrote on Jul 28, 2007 11:29 AM:

" What about Mr Furrow? Does he have to give all that land he "purchased" to El Paso or the County? As for the original purchasers. If they have sold it since they bought it what about taxes? Does this change capital gains? Do they need to file an amended return? If someone other than a municipality purchased it and then sold it does this mean it no longer has a clean title? So many questions. Can of Worms is now open!! "

lets hope... wrote on Jul 28, 2007 11:14 AM:

" the judge in the case that determines the settlement makes the Railroad company pay fopr the lawyers fees as well. Otherwise the municipalities had to pay 30% for land they, by rights, owned anyway. "

OK wrote on Jul 28, 2007 10:43 AM:

" The word attorney should not be allowed to appear more than 5 times in any single article. "

One question wrote on Jul 28, 2007 9:49 AM:

" What happens if you bought some land that was not next to your property. Should the town or township have received the money. I am sure they were not doling the land out free. "

Taxpayer wrote on Jul 28, 2007 9:40 AM:

" Well, that's .001% of the Big Judy debt right there! "

YadaYada wrote on Jul 28, 2007 9:21 AM:

" I did read the article and it said, "Congress adopted a policy in 1920 stating if a railroad abandoned the line and didn’t want the land back, municipalities could have it." First of all, that statement should not be relied upon, because Congress does not adopt policies; Congress legislates laws and the Executive Branch formulates policies, based upon its interpretation of those laws. And, policy is not law. But, putting that aside, temporarily, there are still two parts of the policy to consider: 1) railroads must abandon the line and 2) railroads must not want the land back. Considering part 1), railroads SELLING lines is a far cry from ABANDONING the lines. Considering part 2) in light of the appellate court's ruling, what makes you think the railroad does not want the land back? "

But wrote on Jul 28, 2007 8:41 AM:

" How much will the land owners really get, after the lawyers get their cut? "

Hey Yada wrote on Jul 28, 2007 8:27 AM:

" If you read the article, you'll see that the FEDERAL law states that if abandoned, it goes to the municipalities, not the federal government. "

Glad for 'good news' wrote on Jul 28, 2007 7:57 AM:

" Good to hear a story that gives back to the communities instead of losing something. Hopefully, the municipalities involved will use the funds to improve or extend existing facilities "

YadaYada wrote on Jul 28, 2007 7:51 AM:

" If railroads inappropriately sold property that was originally acquired free through federal land grants, then should not that same property revert back to the federal government? Methinks I'll start a class action lawsuit. "

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