Interstate Commerce Commission, Valuation Reports, Volume 33

The railroad of the Montour Railroad Company, herein called the carrier, is a single-track, standard-gage, steam railroad, located in southwestern Pennsylvania. The main line extends southerly from Montour Junction to Longview Junction, 42.241 miles; a short branch line extends from North Star Junction to North Star; a disconnected section of road extends southerly from Groveton to Moon Run, 5.559 miles; some disconnected yard tracks and sidings and other facilities are located at Mifflin Junction. The property at Mifflin Junction is located upon a graded right of way leased from the Monongahela Southern Railroad Company. The carrier owns 48.512 miles of main tracks and 22.730 miles of yard tracks and sidings. Its road thus embraces 71.242 miles of all tracks owned and used.

The carrier has trackage rights over 2.93 miles of road of The Pittsburgh & West Virginia Railway Company, from Longview Junction to Mifflin Junction.

The carrier is an industrial railroad. Practically all of its revenue tonnage comprises bituminous coal, and it is controlled by and serves the Pittsburgh Coal Company.

The carrier is a corporation of the State of Pennsylvania, having its principal office at Pittsburgh, Pa. It is controlled by the Pittsburgh Coal Company through ownership of substantially all of the capital stock. The records reviewed do not indicate that the carrier controls any carrier corporation. The consolidation by which the carrier had been formed was effective in its accounts as of January 1, 1913. The property of the carrier has been operated by its own organization during its entire life.

The carrier was incorporated January 6, 1913, under the general laws of the State of Pennsylvania, for the purpose of acquiring and consolidating the property, rights, and franchises of the Montour Railroad Company (of 1877), The Pittsburgh & Moon Run Railroad Company, and the North Star & Mifflin Railroad Company. Pursuant to this purpose, the carrier acquired at its organization, the property, rights, and franchises of the three corporations named. The carrier itself and those corporations, together with their predecessors, total five different corporations, 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 corporation, 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 48.512 miles, was acquired partly by construction and partly by consolidation. Of the five corporations that comprise the line of succession culminating in the carrier as at present constituted, two corporations did not construct any road or other common-carrier property. These corporations were the North Fayette Railroad Company and North Star & Mifflin Railroad Company. The property constructed by the remaining corporations, 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:

• Acquired by construction:
  • Imperial to Longview Junction, Pa., 1913-15, 31.50 miles.
• Acquired by consolidation:
  • From the Montour Railroad Company (of 1877)—
    • Constructed by that company, from Montour Junction to Imperial, Pa., 1878-79, 12.00 miles.
  • From The Pittsburgh & Moon Run Railroad Company—
    • Constructed by that company, Groveton to Moon Run, Pa., 1891, 6.00 miles.
• Less, difference between total recorded mileage and mileage inventories as of date of valuation, 0.988 mile.

Mileage inventoried as of date of valuation, 48.512 miles.

In 1913 the carrier purchased from the Pittsburgh Coal Company certain property located at Montour Junction, Pa., which included land for transportation purposes, station and office buildings, water stations, shops and engine houses, shop machinery, and power-plant machinery.

The carrier uses on date of valuation certain facilities owned by another carrier, and that carrier has the right to use certain facilities owned by the carrier, as indicated below. The description of the property, the period and terms of use, and the rentals accrued and charged to income for the year ended on date of valuation, are as follows:

• Jointly used, but not owned, owned by The Pittsburgh & West Virginia Railway Company:
  • Tracks, 2.93 miles, from Longview Junction to Mifflin, Pa., term 25 years from Oct. 1, 1913; maintenance and operating expenses apportioned on basis of cars handled; annual rental 3 per cent on valuation, $8,373.84 rental.
    • (Note — Under the terms of an agreement dated October 1, 1913, the carrier granted the Pittsburgh & West Virginia the right to use jointly about 3 miles of its road near Longview Junction, Pa. The Pittsburgh & West Virginia, however, does not exercise the right.)
• Solely used, but not owned, owned by the Monongahela Southern Railroad Company:
  • Land at Mifflin Junction, Pa .; term 22 years from Aug. 1, 1915, at annual rental of $401.64 rental.

Introductory

The accounting records of the Montour Railroad Company (of 1877) for the period September 10, 1877, to October, 1890, have not been obtained. Therefore, only partial information can be given from its accounts regarding its financial dealings, corporate operations, and investments. The information given herein pertaining to that period has been taken from its corporate minutes and from other documents on file. The consideration of the Montour Railroad Company (of 1877) with two other corporations to form the carrier was made effective in its accounts as of December 31, 1912.

The Montour Railroad Company was controlled on January 6, 1913, the date of its consolidation, by the Pittsburgh Coal Company through ownership of the entire capital stock. The records reviewed do not indicate that this company then controlled any carrier corporation.

The property of the Montour Railroad Company (of 1877) had been operated by its own organization from the date of completion, about July, 1880, to the date of consolidation. The company owned on date of consolidation about 12 miles of single-track, standard-gage, steam-operated railroad that extended from Montour Junction to North Star, all in the State of Pennsylvania.

Development of Fixed Physical Property

The entire 12 miles of road owned on date of consolidation had been acquired by construction. The corporate minutes of the company indicate that its road had been constructed under contract with the Imperial Coal Company, a predecessor of the Pittsburgh Coal Company. Other 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.

The records of the North Fayette Railroad Company have not been obtained. Therefore, no information can be given from its records regarding its transactions. The records of the Montour Railroad Company (of 1877) indicate, however, that the North Fayette Railroad Company had not issued any securities or acquired any property. On August 1, 1879, the company was incorporated for the purpose of constructing and operating a single-track, standard-gage, steam railroad, of about 5 miles in the county of Allegheny, Pa. The authorized capital stock of the company was $25,000 par value, divided into shares of $50 par value each, all classified as common stock. On September 10, 1879, the North Fayette Railroad Company merged its rights and franchises with those of the Montour Railroad Company (of 1877).

Introductory

The accounting records of The Pittsburgh & Moon Run Railroad Company are incomplete. Those reviewed do not indicate the results of corporate operations for the period July 1, 1892, to December 31, 1901. Therefore, only partial information can be given from its accounts regarding corporate operations. Certain information given herein has been taken from the reports of the company to us.

The Pittsburgh & Moon Run Railroad Company was controlled on January 6, 1913, the date of its consolidation, by the Pittsburgh Coal Company through ownership of its entire capital stock. The records reviewed do not indicate that this company then controlled any carrier corporation.

The property of the company had been operated by its own organization from the date of completion in 1892 to the date of consolidation. The railroad of The Pittsburgh & Moon Run Railroad Company was a single-track, standard-gage, steam-operated railroad that extended from Groveton to Moon Run, about 6 miles, all in the State of Pennsylvania.

Development of Fixed Physical Property

The entire 6 miles of road owned, Groveton to Moon Run, on date of consolidation had been acquired by construction in 1891. The work on the original construction was performed partly by forces of Cleveland, Brown and Company, contractors, and partly by forces of the Moon Run Coal Company.

Introductory

The North Star & Mifflin Railroad Company was controlled on January 6, 1913, the date of its consolidation, by the Pittsburgh Coal Company through ownership of substantially all of the capital stock. The records reviewed do not indicate that this company then controlled any carrier corporation. The North Star & Mifflin Railroad Company projected a railroad to extend from North Star to Mifflin, Pa., a distance of about 35 miles. It acquired certain lands and buildings, but did not construct any road.