Wikipedia:WikiProject Trains/ICC valuations/Keokuk and Des Moines Railway

Interstate Commerce Commission, Valuation Reports, Volume 24

Keokuk & Des Moines Railway

Location and General Description of Property

The railroad of Keokuk & Des Moines Railway Company, herein called the Keokuk & Des Moines, is a single-track, standard-gauge, steam railroad, located entirely within the State of Iowa, and extending from Keokuk in a northwest direction to Des Moines. The owned mileage embraces 162.285 miles of first main track and 28.008 miles of other tracks, or 186.293 miles of all tracks.

Corporate History

Share of the Keokuk and Des Moines Railway Company, issued 6. November 1890

The Keokuk & Des Moines was incorporated January 6, 1874, for 50 years, under the general laws of Iowa. On February 12, 1874, it acquired the property, rights, and franchises of that portion of the line of the Des Moines Valley Rail Road Company located between Keokuk and Des Moines. The latter company had been incorporated in 1853. The road disposed of was completed in 1866 and sold at foreclosure to a purchasing committee representing its bondholders November 10, 1873, which committee, on February 12, 1874, conveyed the property to the Keokuk & Des Moines. On May 14, 1878, its railway was leased to the Chicago, Rock Island and Pacific Railroad Company (second corporation), since which date the property has been operated by the latter company and its successor, the carrier [Chicago, Rock Island and Pacific Railway].

Leased Railway Property

The entire property of the Keokuk & Des Moines is operated solely by the carrier under indenture dated May 14, 1878, between the Keokuk & Des Moines and the Chicago, Rock Island and Pacific (second corporation). This lease is in effect from October 1, 1878, to January 6, 1924, the date the charter of the Keokuk & Des Moines expires. Under this indenture the carrier pays an annual rental equal to 25 per cent of the gross earnings from the operation of the leased property, with a minimum of $137,500, the expense of maintaining the corporate organization of the Keokuk & Des Moines and all taxes levied on the property. The minimum rental payment is the amount of the annual interest on the outstanding first-mortgage 5 per cent bonds of the Keokuk & Des Moines the payment of which is guaranteed by the carrier. The agreement also provides that the carrier shall maintain the property in as good condition as when it was delivered to it and at its own cost furnish such additional equipment, buildings, and other structures or appliances as it may deem necessary for the conduct and development of the business, and at the end of the term surrender the railroad in condition and equipment as good as when received by it. The amount of the rental paid by the carrier for the year ended June 30, 1915, was $177,106.27.