In 1905, the Illinois Midland Coal Company purchased the Pawnee Railroad - a short line railroad connecting Pawnee with trunk line railroads. The railroad was renamed the Chicago & Illinois Midland. By 1914 the C&IM had been enlarged and was a busy coal carrier.

The American Locomotive Company built the first "Mikado" type locomotives used on the C&IM and delivered two in 1914. They were designated as Class E-1 and given road numbers 521 and 522. Two more came from ALCO in 1918 and were assigned road numbers 523 and 524. These locomotives were very similar to the Class E-1s, but they did weigh about 3,000 pound more and were designated as Class E-2.

More motive power was needed in 1928. This time Lima was given an order for two 2-8-2s. Lima delivered them in September of the same year and another in 1931. They were designated as Class F-4 and assigned numbers 550-552. By 1934 traffic had increased and the C&IM purchased two used 2-8-2s with 51" diameter drivers from the Sewell Valley Railroad. Because of the 51" drivers they were designated as Class E-3. They were given road numbers 525 and 526. Another used 2-8-2 with 51" drivers was bought from the Minarets & Western and assigned road number 527 and was designated as Class E-4.

The last "Mikados" the C&IM bought were two used ALCO Built locomotives from the DL&W in 1945. This pair was designated as Class F-5 and assigned road numbers 560 and 561.

There is one surviving C&IM 2-8-2 "Mikado" type locomotive. It is number 551, retired in 1955, and is on display at the Museum of Transportation in St. Louis, MO.