Wikipedia:WikiProject Trains/ICC valuations/Gary and Western Railway

Interstate Commerce Commission, Valuation Reports, Volume 28

Gary & Western Railway

Location and General Description of Property

The railroad of the Gary & Western Railway Company, herein called the Gary & Western, is a single-track, standard-gage, steam railroad, located in northwestern Indiana. The main line extends easterly from a connection with the tracks of The New York Central Railroad Company at Ivanhoe to a connection with the tracks of the same company at Gary, a distance of 7.529 miles. The company also owns 0.869 mile of second main track and 4.007 miles of yard tracks and sidings. Its road thus embraces 12.405 miles of all tracks owned and used.

The Gary & Western is controlled by the Chicago, Lake Shore and Eastern Railway Company (Elgin, Joliet and Eastern Railway Company, lessee). It is a nonoperating company. Its property is used jointly by The New York Central Railroad Company and The Indiana Harbor Belt Railroad Company under an informal arrangement stated in the chapter on leased railway property in Appendix 2.

Introductory

The Gary & Western is a corporation of the State of Indiana, having its principal office at Chicago, Ill. No accounting records of the Gary & Western were obtained. Therefore, no information can be given from its accounts regarding its financial dealings, corporate operations, or investments. However, certain data indicated below were obtained from the accounting and other records of the Chicago, Lake Shore and Eastern Railway Company. The Gary & Western is controlled by the Chicago, Lake Shore and Eastern Railway Company, its capital stock being held by individuals for the benefit of that company. On the other hand, the records reviewed do not indicate that this company, itself, controls any common-carrier corporation.

The Gary & Western is a nonoperating company. Its property has always been used jointly by the Indiana Harbor Belt Railroad Company and the Chicago, Indiana and Southern Railroad Company, and the latter's successor, The New York Central Railroad Company, under a reciprocal arrangement with the Chicago, Lake Shore and Eastern Railway Company, as hereinafter referred to in the chapter on leased railway property.

Corporate History

The Gary & Western was incorporated October 6, 1906, under the general laws of the State of Indiana for the purpose of constructing a railroad from Gibson, Ind., a station on the line of the Chicago, Indiana and Southern Railroad Company to a point on the line of the same company about 9 miles west, all in Lake County, Indiana.

Development of Fixed Physical Property

The owned mileage of the Gary & Western, extending from a connection with the tracks of The New York Central Railroad Company at Ivanhoe, Ind., to a connection with the tracks of the same company at Gary, Ind., a distance of 7.529 miles, was constructed by or under the supervision of the Chicago, Lake Shore and Eastern Railway Company for the Gary & Western, during the period from March, 1907, to December, 1910.

Leased Railway Property

The entire property of the Gary & Western is used jointly by the Indiana Harbor Belt Railroad Company and The New York Central Railroad Company under a reciprocal arrangement with the Chicago, Lake Shore and Eastern Railway Company, a lessor company of the Elgin, Joliet and Eastern Railway Company.

Under agreement dated October 29, 1906, between the Chicago, Lake Shore and Eastern Railway Company and the Chicago, Indiana and Southern Railroad Company (a predecessor of The New York Central Railroad Company), the former agreed to relocate, procure right of way, and construct a certain section of the road to be substituted by the Chicago, Indiana and Southern Railroad Company as its main line, the Chicago, Lake Shore and Eastern Railway Company agreeing to convey to that company the relocated line and the Chicago, Indiana and Southern Railroad Company agreeing to convey to the Chicago, Lake Shore and Eastern Railway Company the abandoned line. This agreement also provided for the Chicago, Lake Shore and Eastern Railway Company to cause the railroad of the Gary & Western to be constructed and upon completion the Chicago, Indiana and Southern Railroad Company was to have perpetual use under lease of the road so constructed, and that company was to grant to the Chicago, Lake Shore and Eastern Railway Company the full, joint and equal right to use in common with itself and the Indiana Harbor Belt Railroad Company, all of its tracks so relocated and constructed. This agreement further provided for the payment by each grantee, of $16,000 per annum, for the use granted to it, also all maintenance of the property and such proportion of taxes as may be equitably chargeable to the property used.

Before this reciprocal lease arrangement was completed, negotiations were opened for the conveyance to the Chicago, Indiana and Southern Railroad Company of the Gary & Western property instead of the conveyance to that company of the relocated section of railroad. This transfer and exchange of property had not been accomplished as of date of valuation.

As above stated, the property of the Gary & Western is jointly used by the Indiana Harbor Belt Railroad Company and The New York Central Railroad Company under an informal reciprocal arrangement, under which no rental is paid or accrued.

The telegraph pole line located along the railroad of the Gary & Western and owned by it, is jointly used by the Western Union Telegraph Company under an agreement dated October 27, 1909 with the Chicago, Indiana and Southern Railroad Company, a predecessor of The New York Central Railroad Company.