The Peoria and Eastern Railway was incorporated on February 21, 1890, for the purpose of constructing or acquiring a railway between Pekin, Illinois

Pekin, Illinois

Pekin is a the county seat of Tazewell County in the U.S. state of Illinois. Located on the Illinois River, Pekin is also the largest city of Tazewell County, and a key part of the Peoria metropolitan area. As of the 2010 census, its population is 34,094. A small portion of the city limits extends...

, and Indianapolis, Indiana

Indianapolis, Indiana

Indianapolis is the capital of the U.S. state of Indiana, and the county seat of Marion County, Indiana. As of the 2010 United States Census, the city's population is 839,489. It is by far Indiana's largest city and, as of the 2010 U.S...

. The following day, the company acquired such a railroad from Charles H. Coster and Samuel Spencer

Samuel Spencer (Southern Railway)

Samuel Spencer was an American civil engineer, businessman, and railroad executive. With an education interrupted by service in the Confederate cavalry late in the American Civil War, he completed his education at the University of Georgia and the University of Virginia.Spencer spent his career...

, who had purchased the railroad in a foreclosure sale of the Ohio, Indiana and Western Railway, which had become insolvent the previous year. On the same day, the company entered into an agreement with the Cleveland, Cincinnati, Chicago and St. Louis Railway

Cleveland, Cincinnati, Chicago and St. Louis Railway

The Cleveland, Cincinnati, Chicago and St. Louis Railway, also known as the Big Four Railroad and commonly abbreviated CCC&StL, was a railroad company in the Midwestern United States....

, surrendering operation and control of the railroad to that company, also known as the "Big Four".