Wikipedia:WikiProject Trains/ICC valuations/Interstate Transfer Railway

Interstate Commerce Commission, Valuation Reports, Volume 26

Interstate Transfer Railway

Location and General Description of Property

The railroad of Interstate Transfer Railway Company, herein called the Interstate, likewise leased to and operated by the Missabe, is a single-track line in Wisconsin, extending easterly from the St. Louis River Bridge to South Itasca, Wis., a distance of 10.284 miles.

The property of the Interstate has been operated by the Missabe, under lease, since August 1, 1915, when it was placed in operation.

Introductory

The Interstate is a corporation of the State of Wisconsin, having its principal office at Duluth, Minn. It is controlled through ownership of its entire capital stock by the Federal Steel Company, a subsidiary of the United States Steel Corporation. On the other hand, the records do not indicate that the Interstate controls any common-carrier corporation. The property of the Interstate has been operated by the Missabe, under lease, since August 1, 1915, when it was placed in operation.

Corporate History

The Interstate was incorporated July 26, 1907, under the general laws of the State of Wisconsin, for the purpose of acquiring and operating a railroad in Douglas County, Wisconsin, and in St. Louis County, Minnesota, with branches.

Development of Fixed Physical Property

The owned mileage of the Interstate, amounting to 10.284 miles, was acquired by construction. The construction work began in 1907, but was discontinued in 1913. The work was resumed in 1915, and the road was completed in August, 1916. Operations over part of the road were begun August 1, 1915.

Leased Railway Property

The Interstate has leased its entire property to the Missabe for a term of 99 years from August 1, 1915. The annual rental is equal to 5 per cent on the property valuation reduced by $500,000, plus 7 per cent on the lessor's outstanding capital stock of $500,000 par value, plus $1,000 for maintenance of the lessor's investment organization. The lessee also pays the taxes on the property leased. The Interstate accrued $88,666.62 in its accounts as income from lease of road for the year ending on the date of valuation.