Eric, you are correct about the Hammond Belt being part of the original route. The C&O of Indiana's predecessor was the Chicago, Cincinnati & Louisville. I believe the CC&L's charter was limited to Indiana, so the Hammond Belt was chartered in Illinois to complete the route and connect the CC&L to existing trackage.
The CC&L route through Hammond was south of the Conkey track and paralleled Kenwood as you mentioned. The Monon was crossed just north of South Hammond Yard at a manned tower. The line then angled to the NW through what was called West Hammond at the time, now Calumet City. There is a short angled street in Cal City that is a legacy of the RoW. The line joined the IHB near Torrence Ave. in Burnham, IL at Louisville Junction, named for the original CC&L.
From Louisville Jct, the IHB was used to Highlawn in Riverdale, then the IC for the remainder of the way to Chicago. The route from HY Tower to Louisville Jct was taken out of service after the CC&L was aquired by the C&O. Afterward, the C&O used the Erie through downtown Hammond, then either the Erie and C&WI, or the NKP north of the Grand Calumet River bridge, depending on the time frame. A legacy of the original route was a downtown freight house in the midst of IC's South Water St. facilities that C&O used well into the 1960s.