Preliminary work on changeover to DC power. Eight new substations built at Hammond, Gary, Ogden Dunes, Tremont, Michigan City, Tee Lake, New Carlisle, and South Bend. Five were 1500kw capacity, three were 750kw. July 13th - South Bend to Michigan City changed to DC power. Michigan City to Gary changed over one week later.
Service ends on the local line between East Chicago and Indiana Harbor.
1927 February 20th - Dining and Parlor Car service started. Three Diners and two Parlor car trips each way per day. Total of 70 trains including 40 limited. May 21st - Gala opening for Michigan City 11th St Station and bus garage. Spring - South Bend to Chicago takes 2hr 30min, or 2hr 10min for limiteds.