Wikipedia:WikiProject Trains/ICC valuations/Kansas City, Mexico and Orient Railroad

Interstate Commerce Commission, Valuation Reports, Volume 135

Kansas City, Mexico & Orient Railroad

Location and General Description of Property

The railroad of The Kansas City, Mexico & Orient Railroad Company, herein called the carrier, is a single-track, standard-gauge, steam railroad, located in Kansas and Oklahoma. It consists of two sections of main line, one extending southwesterly from Wichita, Kans., to Foley, Okla., and the other from Ewing, Okla., to the Oklahoma-Texas State line, aggregating 258.741 miles of road. There are no branch lines. The carrier also owns and uses 53.787 miles of yard tracks and sidings. Its owned and used road thus embraces 312.528 miles of all tracks, classified by States in the trackage table in Appendix 1. In addition, the carrier owns but does not use 0.227 mile of sidetracks at Eldorado, Kans., which are leased to the Missouri Pacific Railroad Company. The carrier has trackage rights over the road of the St. Louis-San Francisco Railway Company from Foley to Ewing, Okla., 12.73 miles, which forms a connection of its two sections of owned main line. The carrier thus operates a continuous line from Wichita, Kans., to the Oklahoma-Texas State line. A controlled company, the Kansas City, Mexico and Orient Railway Company of Texas, which operates its own property, continues such operations from the Oklahoma-Texas State line to Alpine, Tex.

Introductory

The carrier is a corporation of the State of Kansas, having its principal office at Wichita, Kans. It is controlled by a purchasing committee which represents a majority of the former bondholders of The Kansas City, Mexico & Orient Railway Company, through the Columbia Trust Company of New York, as trustee. All of the outstanding stock issued by the carrier, except directors' qualifying shares, is held by the above-named trustee, such stock being pledged to secure an issue of two-year 6 per cent gold notes issued by the carrier. On the other hand, the carrier, itself, controls on the date of valuation, through ownership of a majority of its outstanding capital stock, the Orient of Texas, which operates its own property. It controls jointly with the Santa Fe, the Rock Island, and the St. Louis-San Francisco, through ownership of 25 per cent of the capital stock, The Wichita Union Terminal Railway Company, whose property it does not now use. The property of the carrier was operated by its own organization from July 6, 1914, to April 16, 1917; by William T. Kemper, receiver, from April 17, 1917, to December 31, 1917; and by the United States Railroad Administration from January 1, 1918, to date of valuation. At date of valuation the receivership had not been terminated.

Corporate History

The carrier was incorporated July 6, 1914, under the general laws of the State of Kansas, for the purpose of acquiring and operating the lines of railroad formerly owned and operated by the Kansas City, Mexico & Orient Railway Company. Pursuant to this purpose, the carrier acquired by purchase on July 6, 1914, through the purchasing committee, the property, rights, and franchises of the predecessor company referred to.

Development of Fixed Physical Property

The owned mileage, 258.741 miles, was all acquired by purchase from, and was constructed by, the Kansas City, Mexico & Orient Railway. The dates the various portions of the lines were placed in operation, and the manner in which the carrier acquired the property, are indicated in the following table:

	Mileage
Acquired through foreclosure proceedings from the Kansas City, Mexico & Orient Railway, constructed by that company:
Milton, Kans., to Carmen, Okla., Apr. 1, 1903.	74.83
Carmen, Okla., to Fairview, Okla., Sept. 13, 1903.	21.82
Milton, Kans., to Wichita Junction, Kans., Nov. 13, 1904.	27.12
Fairview, Okla., to Longdale, Okla., July 1, 1905.	11.55
Longdale, Okla., to Canton, Okla., Sept. 22, 1905.	6.37
Canton, Okla., to Oakwood, Okla., Dec. 9, 1905.	11.00
Oakwood, Okla., to Foley, Okla., July 6, 1906.	21.09
Ewing, Okla., to Clinton, Okla., Oct. 1, 1906.	2.03
Wichita, Kans., to Wichita Junction, Kans., Dec. 1, 1907.	4.30
Clinton, Okla., to Elmer, Okla., Jan. 1, 1908.	77.69
Elmer, Okla., to Oklahoma-Texas State line, Dec. 1, 1908.	1.92
Total recorded mileage.	259.72
Difference between total recorded mileage and mileage inventoried as of date of valuation.	0.979
Mileage inventoried as of date of valuation.	258.741

In addition, the Kansas City, Mexico & Orient Railway constructed about 237 miles of road in the Republic of Mexico. The records reviewed do not indicate that title to the property in Mexico had passed to the carrier at date of valuation. However, the carrier recorded as owned by it securities issued on the lines in Mexico by its predecessor, aggregating $6,560,000 par value, at book value of $18,812,883.33. The line from Wichita, Kans., to Lone Wolf, Okla., was constructed by the Union Construction Company, and the line from Lone Wolf, Okla., to the Oklahoma-Texas State line by the International Construction Company, both Delaware corporations. Both companies were organized and controlled by the Kansas City, Mexico & Orient Railway or its agents. The Union Construction Company also constructed the lines in Mexico.

Leased Railway Property

The carrier used on December 31, 1917, facilities owned by other companies and leased its facilities to other companies to the extent indicated below.

	Rentals
Solely owned, but not used; leased to Missouri Pacific, 0.227 mile of yard tracks and sidings at Eldorado, Kans.; period and terms of use and the amount of rentals accrued and credited to income for the year ended Dec. 31, 1917, not ascertained.	......
Jointly used, but not owned:
Owned by St. Louis-San Francisco Railway Company—
Tracks, 12.73 miles, from Foley, Okla., to Ewing, Okla.; annual rental $500 per mile per annum; maintenance, operating expenses, and taxes apportioned on car-mileage basis; amount of rental accrued and charged to income for year ended Dec. 31, 1917, not ascertained.	......
Yard track at Wichita, Kans.; annual rental, $300; maintenance, operating expenses, and taxes apportioned on wheelage basis; amount of rental accrued and charged to income for the year ended Dec. 31, 1917, not ascertained.	......
Owned by the Santa Fe; interlockers at Anthony and Harper, Kans.; period and terms of use and the amount of rentals accrued and charged to income for the year ended Dec. 31, 1917, not ascertained.	......
Amount of rentals accrued for the use of all the facilities jointly used but not owned, and charged to income for the year ended Dec. 31, 1917.	$10,862.69

Predecessor Company

The Kansas City, Mexico & Orient Railway

Introductory

This company was incorporated May 1, 1900, in the State of Kansas. It was controlled on date of foreclosure sale under a 10-year voting trust expiring January 1, 1917. The voting trustees were A. E. Stilwell, W. W. Sylvester, Wm. A. Rule, W. S. Woods, Robt. H. Law, H. J. Chinnery, D. J. Neame, Frederick Hurdle, Harold D. Arbuthnot, and Alleyne A. Boxall. On the other hand, the company controlled, at the date of foreclosure sale, the Orient of Texas, through the deposit by the holders thereof of the stock of that company as collateral security for its bonds.

The property of this company was operated by its own organization from the date the first section was placed in operation, April 1, 1903, until the receivership March 7, 1912. From that date until the date of foreclosure sale, it was operated by receivers. The railroad owned and operated was a single-track, standard-gauge, steam railroad, located in Kansas and Oklahoma, and aggregating 258.741 miles. The road extended from Wichita, Kans., in a southwesterly direction, to Foley, Okla., 177.356 miles, and from Ewing, Okla., to the Oklahoma-Texas State line, 81.385 miles. The company used under trackage rights 12.73 miles of the road of another carrier to connect its disconnected main lines between Foley and Ewing, Okla.

Development of Fixed Physical Property

All of the mileage owned on date of foreclosure sale had been acquired by construction. The road from Wichita, Kans., to Foley, Okla., and from Ewing to Lone Wolf, Okla., was built by the Union Construction Company. The road from Lone Wolf, Okla., to the Oklahoma-Texas State line was built by the International Construction Company (Delaware). These two construction companies were closely affiliated with the railway company. Further 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.