Grand Rapids and Indiana Railroad - Lumber To Tourism

Lumber To Tourism

During the last quarter of the 19th century, Northern Michigan had few residents, but the railroad netted a profit of over $300,000 as early as 1876. Most of the profit came from hauling lumber from northern Michigan south. The 244,000 tons of lumber hauled in 1876 represented 70 percent of the railroad's freight business for that year, and shipping forest products remained the main source of business for the railroad for the next decade.

By the late 1880s the forests were depleted and the railroad began to depend more on tourist business. Even before completing the line to Mackinac City, the railroad marketed itself as "The Fishing Line" and published tourist guides advertising the fishing opportinities and resorts along its line.

In 1886 the Grand Rapids & Indiana joined with the Michigan Central Railroad, which had built its own line into Mackinaw City in 1881 and the Detroit and Cleveland Steamship Navigation Company to form the Mackinac Island Hotel Company. This new company built the Grand Hotel on Mackinac Island, which opened in 1887.