Wikipedia:WikiProject Trains/ICC valuations/Denison, Bonham and New Orleans Railroad

Interstate Commerce Commission, Valuation Reports, Volume 34

The Denison, Bonham and New Orleans Railroad

Location and General Description of Property

The railroad of The Denison, Bonham and New Orleans Railroad Company, herein called the Denison, Bonham and New Orleans, extending from Bonham Junction to Bonham, 24.047 miles.

Introductory

The Denison, Bonham and New Orleans is a corporation of the State of Texas, having its principal office at Bonham, Tex.

The accounting records of the Denison, Bonham and New Orleans prior to May 1, 1914, were not obtained. Therefore, only partial information can be given from its accounts regarding its financial dealings, corporate operations, or investments. Certain data given herein were obtained from its minute book and from the records of the Katy of Texas.

The Denison, Bonham and New Orleans is controlled by the Missouri, Kansas & Texas Railway Company through ownership of a majority of its outstanding capital stock. On the other hand, the records do not indicate that this company controls any common-carrier corporation.

The property of the Denison, Bonham and New Orleans was operated by the Katy of Texas under agreements dated April 9, 1901, and April 20, 1914, to December 31, 1917. From that date until date of valuation it has been operated by the United States Railroad Administration as a part of the operating unit of the Katy of Texas.

Corporate History

The Denison, Bonham and New Orleans was incorporated January 24, 1901, under the general laws of the State of Texas, for the purpose of constructing and operating a railroad from Denison to Wolfe City, Tex., and acquiring the right of way and partially constructed roadbed between Denison and Bonham, Tex., formerly owned by the Denison, Bonham and New Orleans Railway Company. The articles of incorporation were amended by the Denison, Bonham and New Orleans filing a certificate dated January 7, 1907, providing for the construction of a branch line from Ravenna to Gilmer, Tex.

Development of Fixed Physical Property

The owned mileage of the Denison, Bonham and New Orleans, 24.047 miles, was constructed during 1901. The road was constructed under contract by the Southern Railway Construction Company which utilized in part or in whole the right of way and partially constructed roadbed between Denison and Bonham, Tex., formerly owned by the Denison, Bonham and New Orleans Railway Company, which it acquired and caused to be conveyed to the Denison, Bonham and New Orleans. The records examined do not state what disposition was made of that part of the old right of way between Denison and Bonham Junction, if any, between those points was owned by the Denison, Bonham and New Orleans Railway Company.

Leased Railway Property

The entire property of the Denison, Bonham and New Orleans is leased to the Katy of Texas for a term of 99 years from May 1, 1914. The terms of the lease and the rental accrued for the year ended on December 31, 1917, are given in the chapter on leased railway property of the report on the Katy of Texas.

Predecessor Company

Denison, Bonham and New Orleans Railway Company

The accounting records of the Denison, Bonham and New Orleans Railway Company were not obtained. Therefore, no information can be given from its accounts in connection with its financial dealings, corporate operations, or investments. However, certain data indicated below were obtained from its minute book and from the records of the Denison, Bonham and New Orleans.

Prior to 1901, the Denison, Bonham and New Orleans Railway Company acquired right of way between Denison and Bonham, Tex., and partially completed the construction of a roadbed between those two points.

The minute book referred to indicates that the Denison, Bonham and New Orleans Railway Company received funds for acquisition of right of way and construction through the sale of its capital stock, through donations, and through loans from local banks.

On March 2, 1901, the Denison, Bonham and New Orleans Railway Company transferred by deed to the Denison, Bonham and New Orleans all of its right, title, and interest in its right of way and graded roadbed, extending from Denison to Bonham, Tex. The consideration named in the deed was $1 and other valuable considerations.