Wikipedia:WikiProject Trains/ICC valuations/Batesville Southwestern Railroad

Interstate Commerce Commission, Valuation Reports, Volume 46

Batesville Southwestern Railroad

Location and General Description of Property

The railroad of Batesville Southwestern Railroad Company, herein called the Batesville Southwestern, is a single-track, standard-gage, steam railroad, situated within the State of Mississippi, extending from Batesville to Crowder, a distance of 16.249 miles. The Batesville Southwestern also owns 1.660 miles of yard tracks and sidings, or 17.909 miles of all tracks.

The property of the Batesville Southwestern is operated by RJ Darnell, lessee.

Introductory

The Batesville Southwestern is a corporation of the State of Mississippi, having its principal office at Chicago, Ill.

The railroad of the Batesville Southwestern was projected in the joint interest of the Illinois Central Railroad Company and R. J. Darnell, Incorporated, a lumber company of Memphis, Tenn., under agreement dated June 7, 1910, between the Illinois Central, on the one hand, and R. J. Darnell, Incorporated, and R. J. Darnell, individually, on the other. This agreement also provided for the operation of the line by the Darnell interests. However, although R. J. Darnell, Incorporated, was a party to the agreement, R. J. Darnell, individually, has in fact discharged the obligations assumed jointly by him and R. J. Darnell, Incorporated.

The Batesville Southwestern is controlled by the Illinois Central Railroad Company. Although no capital stock or bonds had been issued as of date of valuation, the Batesville Southwestern did provide for the issue of $100,000 par value of capital stock in 1917, all of which, with the exception of directors' qualifying shares, was subscribed by and leased to the Mississippi Valley Corporation, a holding company controlled by the Illinois Central.

Corporate History

The Batesville Southwestern was incorporated on June 7, 1910, under the laws of Mississippi.

Development of Fixed Physical Property

The date on which the 16.249 miles of road, constructed under the aforementioned agreement, was opened for operation is not of record. All of the right-of-way was deeded to the Batesville Southwestern by R. J. Darnell, and title to construction work and material used and improvements to the property was conveyed to the Batesville Southwestern under the terms of the agreement of June 7, 1910.

Leased Railway Property

The property of the Batesville Southwestern is operated by R. J. Darnell under an agreement running for 20 years from June 7, 1910, unless sooner terminated. The agreement provides that R. J. Darnell is to pay no rental for the use of the property, his obligation consisting of the maintenance of the property, toward which the Illinois Central pays $143 per mile per annum. R. J. Darnell agreed that all logs to be transported would be delivered to the line of the latter company for shipment to the mills of the R. J. Darnell, Incorporated, in Memphis, Tenn.

The agreement specifies that upon expiration of the contract, or, if terminated prior thereto, upon 60 days' notice, all of the property would be turned over to the Illinois Central subject to the payment by that company to R. J. Darnell of not exceeding $2,000 per mile, as reimbursement for labor and material furnished by him, and that the Illinois Central would make reimbursement in full for any right-of-way he was required to purchase.