In 1967 the Chicago, South Shore & South Bend was purchased by the Chesapeake & Ohio. Although the South Shore was best known for its passenger service, it also did a thriving freight business and made connections with many of the lines entering Chicago. In particular, coal traffic for the Bailly Generating Station west of Michigan City was already over a million tons per year and still rising. These second-hand GP7's wear the C&O's blue and yellow, broken only by the orange South Shore herald, here seen passing the Hohman Avenue passenger station.