[photo indianapolisTerminal 600]
Service on intercity electric railways – known as “interurbans” – began in Indianapolis in 1900. The service was well used, and by 1910, twelve separate companies operated routes to all major towns within 120 miles of Indianapolis. Interurbans offered more frequent and more convenient schedules and less expensive fares than the steam railroads that travelers had relied on before the advent of electric lines.
In 1904 the Indianapolis Traction Terminal opened to consolidate the stations of the various interurban lines that had been established; this relieved traffic congestion from the loading and unloading in the city’s streets. The terminal complex included a nine-story office building and a nine-track train shed. During its first week, which coincided with the State Fair, the terminal handled an average of 10,000 passengers per day. The freight terminal was originally located within the Traction Terminal complex, but as freight traffic increased, more space was needed. In 1918 a separate freight terminal was opened on Kentucky Avenue.
By the end of the 1920s, interurban passenger usage had declined by almost forty percent due to the emerging popularity of the private automobile and the creation of paved roads. Smaller lines either went out of business or merged into larger companies. In 1930, the Indiana Railroad was formed from two large companies, Union Traction and Interstate Public Service; it took over the Terre Haute, Indianapolis and Eastern Company the following year. In 1935, legislation was passed that required the separation of power and railway operations, leaving the railways without the resources of public utilities. Additional factors, such as the 1937 floods, which interrupted service, and a 1941 fatal accident, put an end to the interurbans in Indiana. The tracks in the Traction Terminal were paved over for bus service. After construction of a new bus station, the train shed was torn down in 1968, and the terminal’s office building was razed in 1972. The Indianapolis Traction Terminal reputedly had been the largest traction terminal in the world. -- Indiana Historical Society