Wikipedia:WikiProject Trains/ICC valuations/Minneapolis, Red Lake and Manitoba Railway

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CORPORATE HISTORY

The carrier was incorporated June 14, 1904, for a period of 100 years from June 15, 1904, under the general laws of Minnesota. The date of organization was June 17, 1904. The purpose for which the carrier was incorporated was to purchase the property of the Red Lake Transportation Company which was to be sold under foreclosure proceedings. This latter company had been incorporated November 23, 1897, under the general laws of Minnesota. Under its charter the carrier was permitted to acquire by construction or otherwise an operating railroad from Minneapolis, Minn., via Lower Red Lake, to a point west of the Lake of the Woods, on the boundary between the State of Minnesota and the Province of Manitoba in the Dominion of Canada.

DEVELOPMENT OF FIXED PHYSICAL PROPERTY

The owned mileage of the carrier, 33.6 miles, was acquired by purchase or construction, as follows:

By purchase from the Red Lake Transportation Company under foreclosure proceedings, Redby to White Fish Lake Nov. 1, 1906 11.9

By construction, Nebish to Bemidji Nov., 1904, to Nov. 1905 24.2

Total acquired 36.1

Less abandonments, Nebish to White Fish Lake 1905 2.5

Total road mileage owned and operated on date of valuation 33.6

In the construction of the 24.2 miles of road built for the carrier and the reconstruction of 9.4 miles of the road purchased, Halvoorson, Carlson & Company were employed as contractors. This firm was not affiliated with the company. The property of the Red Lake Transportation Company, consisting of a narrow-gauge line extending from Redby to White Fish Lake, was purchased by the carrier at foreclosure sale. That part of the line from Redby to Nebish, about 9.4 miles, was reconstructed and the gauge standardized. That part of the line from Nebish to White Fish Lake about 2.5 miles, was abandoned. The carrier then extended the line from Nebish to Bemidji, a distance of about 24.2 miles.

HISTORY OF CORPORATE FINANCING

Predecessor Company

RED LAKE TRANSPORTATION COMPANY PREDECESSOR OF THE CARRIER

The accounting records of the Red Lake Transportation Company are not obtainable, therefore, no information can be given from the accounts in connection with the finances, operations, aids, investments, or original cost of this company. Certain details obtained from the correspondence files of the secretary of the carrier are given below. The records reviewed did not indicate that the company was controlled by any individual or corporation on June 28, 1904, the date of sale, nor on the other hand, that it then controlled any other common-carrier corporations.

The Red Lake Transportation Company owned on date of sale about 12 miles of single-track narrow-gauge steam railroad, extending from Redby to White Fish Lake, Minn., and a steamboat operating on Red Lake.

The Red Lake Transportation Company defaulted in its obligations and its affairs were placed in the hand of a trustee. Subsequently its property and franchises were sold at sheriff's sale under foreclosure proceedings, sale confirmed by court June 28, 1904, and conveyed to the carrier by sheriff's deed dated June 29, 1904, and trustee's deed dated June 30, 1904.

The authorized capital stock of the Red Lake Transportation Company was $100,000 par value as stated in its articles of incorporation. The Red Lake had issued $100,000 par value first-mortgage 6 per cent bonds, dated January 10, 1903, and maturing January 10, 1913, which were held by the Swedish American National Bank of Minneapolis, Minn., as collateral security for loans.

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