Interstate Commerce Commission, Valuation Reports, Volume 106

The railroad of the Central Indiana Railway Company, hereinafter called the carrier, consists of 117.697 miles of single-track standard-gauge steam railroad, located wholly in Indiana, and comprises two main lines. One main line extends from Muncie, in a general westerly direction, to Waveland Junction, the other extends from Sand Creek, in a general southerly direction, to Brazil. In addition it owns 22.442 miles of yard tracks and sidings. Its road thus embraces 140.139 miles of all tracks. It also jointly owns with other carriers 0.261 of a mile of yard tracks and sidings. The company uses under trackage rights 9.38 miles of road of The Pittsburgh, Cincinnati, Chicago and St. Louis Railroad Company, which connects its main lines between Waveland Junction and Sand Creek, Ind.

The carrier is a corporation of the State of Indiana, having its principal office at Anderson, Ind. Although the carrier acquired title to its property on March 16, 1903, it did not commence recording the results of the operations of its property in its books until April 1, 1903. Therefore, the accounting data in this report cover the period from April 1, 1903. The carrier is controlled jointly by The Cleveland, Cincinnati, Chicago and St. Louis Railway Company and the Pennsylvania Company through ownership of its entire outstanding capital stock. On the other hand, the records do not indicate that the carrier, itself, controls any other common-carrier corporations. The property of the carrier has been operated by its own organization from April 1, 1903, to date of valuation.

The carrier was incorporated March 16, 1903, under the general laws of the State of Indiana, for the purpose of acquiring the property, rights, and franchises of the Chicago and South Eastern Railway Company. The date of its organization was not determined. Pursuant to the above purpose, the carrier acquired at its organization the property, rights, and franchises of the Chicago and South Eastern Railway Company. The carrier, itself, and its predecessors total five different corporations, of which one underwent a change of name, and comprise the line of corporate succession culminating in the carrier as at present constituted. The following chart shows the names of the corporations, the respective dates of incorporation and for each predecessor the date of succession, the immediately succeeding corporations, and the manner of succession. Reference to each of these corporations is made in the last column by its respective number shown in the first column.

The owned mileage of the carrier, amounting to 117.697 miles, was all acquired by purchase after foreclosure. The property constructed by the four corporations that comprise the line of succession culminating in the carrier as at present constituted, the years when the various portions of the line were constructed, and the manner in which the carrier acquired the property are indicated in the following table, wherein, to facilitate comparison with the table showing the corporate succession, previously given, the same order of corporations is maintained.

Mileage inventoried as of date of valuation, 117.697 miles.

• Acquired by purchase after foreclosure from the Chicago and South Eastern Railway Company, March 16, 1903, 117.860 miles:
  • Constructed by the Chicago and South Eastern Railway Company, Muncie to Anderson, Ind., 1894-1900, 18.98 miles.
  • Constructed partly by the Midland Railway Company and completed by the Chicago and South Eastern Railway Company—
    • Sand Creek to Bridgeton, Ind., 1891-1892, 10.66 miles.
    • Carbon to Brazil, Ind., 1891-1892, 5.74 miles.
  • Constructed by the Midland Railway Company, Noblesville to Waveland Junction, Ind., 1885-1890, 58.87 miles.
  • Constructed by the Cleveland, Indiana and St. Louis Railway Company, Anderson to Noblesville, Ind., 1872-1876, 18.32 miles.
  • Constructed by The Fort Wayne, Terre Haute and Southwestern Railroad Company, Bridgeton to Carbon, Ind., 1891-1892, 5.29 miles.
• Less, difference between total recorded mileage and mileage inventoried as of date of valuation, .163 mile.

The carrier jointly uses on date of valuation facilities owned by another company and other companies jointly use facilities owned by it to the extent indicated below. The description of the property, the period and terms of use, and the rentals accrued and charged or credited to income for the year ending on date of valuation, are as follows:

• Solely owned but jointly used, used with:
  • Muncie Belt Railway Company, tracks, 0.8 mile from Belt Junction to Avondale, Ind., for indefinite period from November 1, 1912; stipulated payment 20 cents per engine of the company moving over the track, $88.40 rental.
  • The Cleveland, Cincinnati, Chicago and St. Louis Railway Company, tracks, 1 mile, at Muncie, Ind.; for indefinite period from November 1, 1912; stipulated payment of 20 cents per engine of the company moving over the track, $135.00 rental.
• Jointly used, but not owned, owned by:
  • The Pittsburgh, Cincinnati, Chicago and St. Louis Railroad Company, tracks, 9.38 miles, from Waveland Junction to Sand Creek, Ind.; for indefinite period from August 19, 1905; stipulated payment $3,600 per annum and one-half of taxes, plus proportion, on car basis, of cost of maintenance and operation, $5,293.24 rental.

There are other facilities of minor importance, such as crossings, interlockers, yard tracks, and sidings, in which the company grants or receives joint use, that are not listed in this chapter.

Introductory

No accounting records of the Chicago and South Eastern Railway Company for the period from the date of its organization to September 1, 1902, were obtained. For that reason only partial information can be given from its accounts regarding its financial dealings, corporate operations, or investments.

Although the property of this company was sold on February 19, 1903, and was conveyed to its successor by deed dated March 16, 1903, the accounts of the company and of the receivers, for the results of corporate operations, advances received, and certain additions and betterments to the property, continued to March 31, 1903. The accounting data in this report, therefore, cover the period September 1, 1902, to March 31, 1903.

This company was controlled jointly by The Cleveland, Cincinnati, Chicago and St. Louis Railway Company and the Pennsylvania Company, on February 19, 1903, the date of sale, through ownership of its outstanding capital stock. On the other hand, the records reviewed do not indicate that it then controlled any common-carrier corporations.

The property of this company was operated by its own organization from the date the original 77.19 miles was acquired, October 20, 1891, until the receivership, December 13, 1902. From that date the property was operated by the receivers until it was surrendered to the carrier April 1, 1903, although it was conveyed to the latter company by deed dated March 16, 1903.

The railroad operated by the receivers on the date of sale was a single-track, standard-gauge steam railroad, located in the State of Indiana and aggregating 117.86 miles, all owned. It consisted of two main lines; one extended from Muncie to Waveland Junction, Ind., and the other extended from Sand Creek to Brazil, Ind.

This company and the receivers used under trackage rights 9.38 miles of road of the Terre Haute & Logansport Railway Company extending from Waveland Junction to Sand Creek, Ind. This property, together with its owned railroad, formed a through line from Muncie to Brazil, Ind.

Development of Fixed Physical Property

Of the 117.86 miles of road owned by the Chicago and South Eastern Railway Company on the date of sale, it had acquired 5.29 miles from the Fort Wayne, Terre Haute and Southwestern Railroad Company, 77.19 miles from the Midland Railway Company, 16.40 miles by completion of construction begun by the company last mentioned, and 18.98 miles by construction. The records reviewed do not indicate whether the road constructed for the Chicago and South Eastern Railway Company was constructed under contract or by company forces. Further details with respect to the construction of this property are given in the chapter on development of fixed physical property in the report on the carrier.

No accounting records of the Midland Railway Company were obtained. Therefore, no information can be given from its accounts regarding its financial dealings, corporate operations, or investments. However, certain data given below with respect to the issuance of stock and bonds were obtained from articles of incorporation and other documents on file.

The records reviewed do not indicate whether the company was controlled by any individual or corporation on October 20, 1891, the date of sale, nor, on the other hand, whether it then controlled any other common-carrier corporations.

The property of the company was operated by its own organization from July 8, 1885, the date it acquired its original 18.32 miles of road, to 1889. From the latter date to 1890 it was operated by a receiver, and from 1890 to date of sale the property was operated by its own organization.

The company used under trackage rights 9.38 miles of road of the Terre Haute and Logansport Railroad Company extending from Waveland Junction to Sand Creek, Ind.

The company owned on October 20, 1891, the date of sale, 77.19 miles of single-track, standard-gauge, steam railroad, between Anderson and Waveland Junction, Ind., and two sections of partially constructed single-track, standard-gauge, steam railroad, one section extending from Sand Creek to Bridgeton, Ind., 10.66 miles, and the other extending from Carbon to Brazil, Ind., 5.74 miles. The records reviewed do not indicate whether the road was constructed under contract or by company forces. Further details with respect to the construction of this property are given in the chapter on development of fixed physical property in the report on the carrier.

No accounting records of the Cleveland, Indiana and St. Louis Railway Company were obtained. Therefore, no information can be given from its accounts regarding its financial dealings, corporate operations, or investments. However, certain data given below with respect to the issuance of stock and bonds were obtained from articles of incorporation and other documents on file. The records reviewed do not indicate whether the company was controlled by any individual or corporation on July 8, 1885, the date of sale, nor, on the other hand, whether it then controlled any other common-carrier corporations.

The property of the company was operated by its own organization from the date of completion, about 1876, to December 12, 1878. From the latter date to the date of sale it was operated by a receiver. The railroad owned by the company consisted of 18.32 miles of single-track, standard-gauge, steam railroad, extending from Anderson to Noblesville, Ind., which was acquired by construction. The records reviewed do not indicate whether the road was constructed under contract or by company forces. Further details with respect to the construction of this property are given in the chapter on development of fixed physical property in the report on the carrier.

No accounting records of The Fort Wayne, Terre Haute and Southwestern Railroad Company were obtained. Therefore, no information can be given from its accounts regarding its financial dealings, corporate operations, or investments. However, certain data given below were obtained from other sources.

The records reviewed do not indicate whether the company was controlled by any individual or corporation on July 17, 1901, the date of sale, nor, on the other hand, whether it then controlled any other common-carrier corporations.

The completed property of the company was operated by the Chicago and South Eastern Railway Company from about 1892, exact date indeterminable, to the date of sale. The company owned on date of sale approximately 5.29 miles of completed railroad extending from Carbon to Bridgeton, Ind., all of which was acquired by construction. The records reviewed indicate that the company also partially constructed approximately 6.5 miles of railroad extending from Bridgeton, Ind., to a point near Mansfield, Ind., all of which was graded and rails laid for approximately 4.5 miles. This line had been abandoned and the material removed therefrom, prior to the date of sale. The construction work of the company was all performed by E. P. Reynolds and Company, contractors. Further details with respect to the construction of this property are given in the chapter on development of fixed physical property in the report on the carrier.