Wikipedia:WikiProject Trains/ICC valuations/Tennessee Western Railroad

Interstate Commerce Commission, Valuation Reports, Volume 39

Tennessee Western Railroad

Location and General Description of Property

The railroad of the Tennessee Western Railroad Company, hereinafter called the Tennessee Western, is a single-track, standard-gage, steam railroad, extending in a general northwestwardly direction from Iron City to Collinwood, Tenn., a distance of 17.516 miles. The Tennessee Western also wholly owns and uses 3.851 miles of yard tracks and sidings. Its road thus embraces 21.367 miles of all tracks owned. The property is operated by the Louisville and Nashville Railroad Company, as agent for the Tennessee Western. Only the land, grading, bridges, trestles, culverts, and ties in this railroad are owned by the Tennessee Western; the rails, other track material, and all other fixtures are owned by the Louisville and Nashville Railroad Company.

Introductory

The Tennessee Western is a corporation of the State of Tennessee, having its principal office at Nashville, Tenn. It is controlled by the Tennessee Valley Iron and Railroad Company, through ownership of its entire outstanding capital stock, and is operated by the Louisville and Nashville Railroad Company, as agent for the Tennessee Western.

Corporate History

The Tennessee Western was incorporated by the Tennessee Valley Iron and Railroad Company under the general laws of the State of Tennessee, through filing articles of incorporation with the secretary of state of Tennessee on June 27, 1912. The purpose for which the Tennessee Western was incorporated was to construct and operate a railroad from a point at or near Iron City to Olive Hill, all in the State of Tennessee, to provide an outlet for the products of the Tennessee Valley Iron and Railroad Company. The date of organization was June 26, 1912.

Development of Fixed Physical Property

The owned mileage of the Tennessee Western, 17.516 miles, was acquired by construction. Construction work was begun in August, 1912, and was completed on November 13, 1913, on which date it was opened for operation by the Louisville and Nashville Railroad Company, as agent for the Tennessee Western, under an agreement dated October 8, 1912. The property of the Tennessee Western was constructed partly by the Tennessee Valley Iron and Railroad Company and partly by the Louisville and Nashville Railroad Company, under the agreement of October 8, 1912, previously referred to.

This agreement was between the Tennessee Valley Iron and Railroad Company and the Louisville and Nashville Railroad Company, and provided that the former would procure the right of way for the Tennessee Western, prepare the roadbed and purchase all ties, and upon the proper completion of the roadbed and the delivery of the necessary ties, the Louisville and Nashville Railroad Company, at its own expense, would furnish the necessary rails and other track material, construct and lay the railroad track, and maintain and operate the railroad for a period of 20 years. The rails and other track material thus furnished by the Louisville and Nashville Railroad Company were to remain the property of that company unless sold to the Tennessee Valley Iron and Railroad Company or the Tennessee Western. The records of the Louisville and Nashville Railroad Company and the inventory made by us disclosed that the rails and other track material, together with certain improvements placed on the property, remain the property of the Louisville and Nashville Railroad Company at date of valuation.

Leased Railway Property

The property owned by the Tennessee Western has been continuously operated by the Louisville and Nashville Railroad Company, as agent for the former, from the date it was placed in operation to date of valuation, under the terms of an agreement dated October 8, 1912, between the Tennessee Valley Iron and Railroad Company and the Louisville and Nashville Railroad Company. This agreement was effective for a term of 20 years from November 13, 1913, and provided that for use of the property the Louisville and Nashville Railroad Company would pay the Tennessee Western the gross earnings from the operation of the property. In event of loss from operation, the Louisville and Nashville Railroad Company may terminate the agreement on 30 days' written notice and remove the property owned by it on the Tennessee Western's right of way; however, the Tennessee Valley Iron and Railroad Company or the Tennessee Western has the option of paying the Louisville and Nashville Railroad Company the amount of the loss suffered by it in the operation of the property, and to purchase at a fair value the fixed property on its right of way owned by the latter.