Wikipedia:WikiProject Trains/ICC valuations/Portland and Rumford Falls Railroad

Interstate Commerce Commission, Valuation Reports, Volume 30

Portland and Rumford Falls Railroad

Introduction

The Portland and Rumford Falls Railroad neither owns nor operates carrier property. It leases from the Portland and Rumford Falls Railway and from the Rumford Falls and Rangeley Lakes their property, which it subleases to the carrier for operation.

Corporate History

The Portland and Rumford Falls Railroad was incorporated on March 19, 1907, under the private laws of the State of Maine, for the purpose of combining into one organization the properties of the Portland and Rumford Falls Railway and the Rumford Falls and Rangeley Lakes. Hugh J. Chisholm, president of these two companies, organized the Portland and Rumford Falls Railroad. On April 1, 1907, the Portland and Rumford Falls Railroad leased these two properties and subleased them on May 1, 1907, to the carrier, which operates them. The principal office of the Portland and Rumford Falls Railroad is at Portland, Me.

Leased Railway Property

Leased from others. — On April 4, 1907, the Portland and Rumford Falls Railroad leased the entire property of the Portland and Rumford Falls Railway for a term of 1,000 years from April 1, 1907, at an annual rental of 8 per cent upon $2,000,000 of the lessor's capital stock and an allowance of $300 for organization expenses. The lessee is, in addition, obligated to pay all interest on the lessor's funded debt and to comply with the sinking-fund requirements of the lessor's mortgages. The lease provides that "the lessee may from time to time make or provide or cause to be made and provided new und additional buildings, tracks, rails, equipment or other appurtenances, necessary or beneficial for the purposes of the demised property, and also such changes of location as may be so necessary or beneficial, but not so as to divert the same substantially from the existing route, nor to impair the value or any part thereof. Additional securities shall be issued by the lessor at the request of the lessee to provide funds to enable the lessee to make necessary permanent additions and improvements upon the leased property, secured by mortgage upon said additions and improvements, and all such securities shall bear interest at the rate of four per cent per annum, and lessee shall guarantee and pay the same or cause the same to be guaranteed and paid both principal and interest, in addition to the rental and other payments called for by the lease; said bonds, however, shall be subject to all present outstanding bonds."

On April 4, 1907, the Portland and Rumford Falls Railroad leased the entire property of the Rumford Falls and Rangeley Lakes for a term of 1,000 years from April 1, 1907, at an annual rental of 2 per cent on $300,000 of the lessor's capital stock and an allowance of $200 for organization expenses. The lessee and lessor are under the same additional obligations as stated above in connection with the lease of the property of the Portland and Rumford Falls Railway.

Leased to others. — On April 26, 1907, the Portland and Rumford Falls Railroad leased all of its noncarrier property and subleased its leased railway property to the carrier for a term of 999 years from May 1, 1907, at an annual rental of $328,000. The lease provides that "the lessee may from time to time make such permanent additions and improvements in and upon the demised premises as the requirements of the business may make proper and necessary. To meet the cost of such permanent necessary additions and improvements, additional securities shall be issued by the lessor at the request of the lessee, all such securities to bear interest at the rate of four per cent per annum, and the payment of such securities, both principal and interest, shall be guaranteed and paid by the lessee in addition to the stipulated annual rental, and such securities shall be subject to all outstanding bonds." The lessee is obligated to maintain the property and to pay all taxes and insurance.