The Canada Southern Railway established the Chicago and Canada Southern Railway to extend west toward Chicago.[4] Between 1871 and 1888 four companies bore the name Chicago and Canada Southern Railway. The first was incorporated on May 19, 1871, in Indiana. The company constructed no track, and was consolidated on July 3 of that year with the Michigan Air Line Railroad, an Illinois company.[a] This new company existed only three days before being consolidated with the North Western Ohio Railroad to form the third Chicago and Canada Southern Railway. Finally, on October 25, 1871, this company was consolidated with the South Eastern Michigan Railway to form the fourth Chicago and Canada Southern Railway.[5]
Construction began in 1872. On July 4, 1872, it was opened between the Lake Shore and Michigan Southern Railway's (LS&MS) main line at "Grosvenor" (near Blissfield, Michigan) and Fayette, Ohio. It was completed between Grosvenor and Grosse Ile on November 13, 1873.[6] The Panic of 1873 halted any further expansion. The company hired John S. "Jack" Casement, who had worked on the Union Pacific Railroad, but Fayette remained the southern extent of the line.[7] The LS&MS leased the Chicago and Canada Southern Railway in November 1879. The LS&MS reorganized it as the Detroit and Chicago Railroad on September 25, 1888.[4]