Wikipedia:WikiProject Trains/ICC valuations/New Orleans, Texas and Mexico Railroad

Interstate Commerce Commission, Valuation Reports, Volume 29

The New Orleans, Texas & Mexico Railroad

Location and General Description of Property

The railroad of The New Orleans, Texas & Mexico Railroad Company, herein called the New Orleans, Texas & Mexico, is a standard-gage, steam railroad, located in the State of Louisiana. Its owned mileage extends from Anchorage to DeQuincy, La., 137.630 miles, with branch lines from Eunice to Crowley, La., and from Erwinville to Mix, La., aggregating 35.256 miles. Of the total mileage stated, 0.620 mile is double track. The New Orleans, Texas & Mexico solely uses, under lease, terminal property at New Orleans.

Trains of the New Orleans, Texas & Mexico are transferred by boat across the Mississippi River between Baton Rouge and Anchorage, La. Through trackage rights over lines of other carriers; the New Orleans, Texas & Mexico operates from DeQuincy, La., to the Louisiana-Texas State line, to the Louisiana-Texas State line, and from Baton Rouge to New Orleans, La., a total distance of 113.15 miles.

The New Orleans, Texas & Mexico wholly owns 172.886 miles of road, all of which it uses. It also wholly uses, under lease, the property of the Louisiana Southern Railway Company, which consists of a single-track, steam railroad, extending from New Orleans, La., to Bohemia and Shell Beach, La., aggregating 65.658 miles of road. The lessor company is reported upon in section 2.

The New Orleans, Texas & Mexico wholly owns and uses 228.399 miles of all tracks and wholly uses but does not own 81.714 miles of all tracks. These tracks are classified in the trackage table in Appendix 1.

Introductory

The New Orleans, Texas & Mexico is a corporation of the State of Louisiana, having its principal office at New Orleans, La. It is controlled by the St. Louis and San Francisco Railroad Company through ownership of the entire capital stock, except, directors' qualifying shares.

The property was operated by its own organization from September 1, 1909, to July 5, 1913, when A. D. Lightner was appointed temporary receiver. On July 9, 1913, the United States District Court for the Eastern District of Louisiana appointed J. D. O'Keefe receiver, who has continued to operate the property to date of valuation.

Corporate History

The New Orleans, Texas & Mexico was originally incorporated May 8, 1905, under the laws of the State of Louisiana, as the Colorado Southern, New Orleans and Pacific Railroad Company. By amendment to the charter on March 21, 1910, the name of the corporation was changed to New Orleans, Texas & Mexico Railroad Company.

Development of Fixed Physical Property

The owned mileage of the New Orleans, Texas & Mexico, amounting to 172.88 miles, was constructed by or for account of the New Orleans, Texas & Mexico and the Colorado Southern, New Orleans and Pacific. Preliminary surveys were begun in May, 1905, and were completed in the early part of 1906.

Under contract dated October 18, 1905, as supplemented by another contract dated January 22, 1906, entered into by and between the Colorado Southern, New Orleans and Pacific and the Gulf Construction Company, which was affiliated with the St. Louis and San Francisco Railroad Company, the construction company obligated itself, among other things, to construct about 142 miles of main line and 50 miles of branches. The construction company on November 8, 1905, contracted with Kenefick, Hammond, and Quigley for a portion of the construction of certain located mileage of the Colorado Southern, New Orleans and Pacific. On April 14, 1906, before any payments had been made to the contractors by the construction company, an agreement was entered into by and between that company and the Colorado Southern, New Orleans and Pacific, under the terms of which the contracts of October 18, 1905, and January 22, 1906, were canceled and the Colorado Southern, New Orleans and Pacific assumed all contracts made by the construction company for the construction of the line, and the acquisition of certain property, and acquired the assets of that company. In consideration of the above the Colorado Southern, New Orleans and Pacific paid to the construction company $2,200,000 in cash.

The original line of road, from Anchorage to DeQuincy, La., approximately 137.63 miles, and from Eunice to Crowley, La., about 22.37 miles, was constructed partly by independent contractors and partly by the company's own forces. The principal contractors engaged on the original line were Kenefick, Hammond, and Quigley; Kenefick, Hodman, and Quigley; and Kahmann and McMurray. Both lines were opened for operation on September 1, 1909.

The roadbed and bridges of the branch line from Erwinsville to Mix, La., about 12.88 miles, were constructed by P. M. Johnston, Son and Allhands, under contracts of May 31, 1910, and May 15, 1911. The remainder of the work was completed by the forces of the New Orleans, Texas & Mexico and individuals and companies, with whom no formal contracts were made. This line was completed and opened for operation some time in 1911.

Leased Railway Property

The New Orleans, Texas & Mexico uses on date of valuation property owned by other companies and other companies use property owned by the New Orleans, Texas & Mexico to the extent indicated in the statement below.

The description of the property, the period and terms of use, and the rentals accrued and charged or credited to income for the year ending on date of valuation are as follows:

	Rentals
Solely owned, but not used, leased to Frisco Refrigerator Line:
Under an indenture dated Dec. 31, 1911, the New Orleans, Texas & Mexico, subject to the agreement of conditional sale of Sept. 1, 1911, between it and the Guaranty Trust Company of New York, leased to the Frisco Refrigerator Line, a corporation of the State of Missouri, 1,000 steel refrigerator cars for a term of five years from Jan. 3, 1912, and thereafter until the lease should be terminated by six months' notice in writing by either party. The New Orleans, Texas & Mexico agreed to keep the series complete by making necessary replacement of units destroyed. Under the terms of the indenture and supplement thereto dated Mar. 25, 1913, the lessor agreed to pay an annual rental equal to 6 per cent on the original cost of the equipment, the value of each unit being fixed by the parties to the agreement at $1,206.20, amounting in the aggregate to $1,206,200, the rental for any period to be based on the actual number of units in existence and use during that period; to pay an additional 6 per cent per annum on the agreed valuation as depreciation to cover ordinary wear and tear during the term of the lease; to pay all taxes levied or assessed upon the equipment; to keep and maintain the equipment in good order and repair and to collect promptly from those responsible for damage to or destruction of cars the amount of the damage or value of the equipment destroyed and to pay the amounts as collected to the New Orleans, Texas & Mexico. On date of valuation there were 992 of these cars in existence. The records of the New Orleans, Texas & Mexico show the rentals accrued for the year 1914 to be...	$65,774.08
Solely owned, but jointly used, used with—
The Morgan's Louisiana and Texas Railroad and Steamship Company— The Texas and Pacific Railway Company—
Yards and terminals at Anchorage, La.	13,837.12
Jointly used but not owned:
As previously stated, the New Orleans, Texas & Mexico uses 113.15 miles of tracks of other carriers under trackage agreements. The rentals accrued for the use of this mileage during the year ending on date of valuation are as follows—
DeQuincy, La., to Louisiana-Texas State line, 18.50 miles.	14,382.49
Baton Rouge to Shrewsbury, La., 87.81 miles.	84,730.89
Shrewsbury to New Orleans, La., 6.84 miles, and passenger station and terminal yards at New Orleans, La.	60,446.16
Solely used, but not owned:
Under an agreement of Feb. 1, 1911, the New Orleans, Texas & Mexico operates under lease the entire property of the Louisiana Southern Railway Company, hereinbefore described. The lease provides for the payment of $5 per annum, payment of taxes, interest on funded debt, 2½ per cent on outstanding capital stock, and an additional amount of $10,000 per annum for the expense of maintaining and administering the offices of the Louisiana Southern. No rental has been accrued in the accounts of the New Orleans, Texas & Mexico for the use of this property.	......