Zett,
Great write-up on an old steam locomotive that is near and dear to me.
Glad you survived to; it goes without saying there is very little safe about Gary these days!
I grew up a few more miles east of that very location along route 12 in the small beach community of Ogden Dunes along the South Shore Line. Now living out in Seattle.
Growing up, both my parents worked in Gary so trips out that way had us passing that train on a regular basis. I remember always looking forward to passing by and getting a glimpse of it!
Also, there's a cheater entrance to the Indiana Tollroad right there where you don't actually have to pay a toll to get on (see above statement about the safety of downtown Gary), so trips to Chicago would always have us passing by.
If I remember correctly, it was touched up several years ago (a decade?), since it was in even worse shape than it is now. So what you saw was better than it could've been if efforts hadn't gone into preserving what they did.
I agree with you though, that is no longer the appropriate final resting place for such a historic icon.
Also, great job on digging up some old photos of 765 from "back in the day". I'll be sure to share the link to your site with the family, since I know a few of them would be interested in seeing the photos of that familiar train from back in her glory days.