Wikipedia:WikiProject Trains/ICC valuations/Central New England Railway

Interstate Commerce Commission, Valuation Reports, Volume 97

Location and General Description of Property
The railroad of the Central New England Railway Company, hereinafter called the carrier, is a partly double-track standard-gauge steam railroad located in the States of Connecticut, Massachusetts, and New York. The owned mileage is wholly within the State of New York and extends from Boston Corners to Campbell Hall and Dutchess Junction, from Hopewell Junction to Poughkeepsie Junction, and from State line to Silvernails. It owns terminal properties at Campbell Hall and Poughkeepsie, N.Y., and uses other terminal properties, under lease or rental, at Beacon and Rhinecliff, N.Y.; Danbury and Hartford, Conn.; and Springfield. The terms under which these terminals are used are shown in Appendix 2, under the caption Leased Railway Property.

The carrier wholly owns 135.665 miles of road, all of which it uses. It also wholly uses 159.310 miles of road owned by other carriers, of which 34.984 miles, consisting of main and branch lines between Hopewell Junction, N.Y., and Danbury, Conn., is owned by The New York, New Haven and Hartford Railroad Company. The remaining 124.326 miles of leased line is owned by the Hartford and Connecticut Western Railroad Company, hereinafter called the Hartford and Connecticut Western, and is described in the part of this report devoted to that company.

By means of trackage rights granted to the Hartford and Connecticut Western over the line of the Boston and Albany Railroad Company from Agawam Junction to Springfield, Mass., a distance of about 4 miles, the carrier reaches Springfield. In Appendix 1 will be found a more complete description of the property owned or leased by the carrier.

Corporate History
The carrier was incorporated under the general railroad law of New York on basis of agreement dated June 7, 1907, effective June 25, 1907. Such agreement provided for the consolidation of a predecessor of the carrier of the same corporate name with four other corporations, namely, the Newburgh, Dutchess and Connecticut Railroad Company, the Poughkeepsie Bridge Railroad Company, the Dutchess County Railroad Company and The Poughkeepsie and Eastern Railway Company. Under this consolidation the carrier succeeded to the property, rights, and franchise of its predecessor in name and the four other companies. It adopted the capital stock of its predecessor in name, which had previously been incorporated January 12, 1899, under the stock-corporation law of New York, and the accounts of such predecessor were continued as if for a single continuous corporation.

The Philadelphia, Reading and New England Railroad Company, predecessor of the Central New England Railway Company of 1899, was the final stage of several corporate successors as follows: The Pennsylvania and New England Construction Company was organized to further railroad development east and west of the Hudson River, in connection with the completion of the Poughkeepsie bridge. While the bridge was being completed in 1888, the Philadelphia Air Line Trust succeeded to the interest of the Pennsylvania and New England Construction Company in the plan of development and acquired control of the Hudson Connecting Railroad Company, which had the right to build a railroad from the west end of the bridge to Campbell Hall, N.Y., and of The Poughkeepsie and Connecticut Railroad Company, which had the right to build from the east end of the bridge to Silvernails, N.Y. Under this control these two roads were built and consolidated in 1889 as the Central New England and Western Railroad Company. When the Philadelphia Air Line Trust was dissolved in March, 1889, the control of this consolidated road passed to the Delaware and New England Company, a holding corporation, which controlled The Poughkeepsie Bridge Company, also. In 1892, following failure of both the Central New England and Western Railroad Company and The Poughkeepsie Bridge Company to pay their bond interest, a reorganization of the two was effected as the Philadelphia, Reading and New England Railroad Company.

On April 13, 1908, the property of The East Granby and Suffield Railroad Company, which had been incorporated in Connecticut on August 21, 1901, was acquired by the carrier and the corporation was dissolved.

The preceding incorporated companies, together with their successive relations, are shown in the following schedule:

The Dutchess and Columbia Railroad Company consolidated with the Putnam and Dutchess Railroad Company and the New York and Boston Railroad Company to form the New York, Boston and Northern Railroad[sic] Company, which latter company consolidated with the Hudson[sic] Extension Railroad Company to form the New York, Boston and Montreal Railroad[sic] Company. The obtainable records do not show that these corporations, although a part of the corporate succession, contributed anything to the corporate development of the existing company or to the growth of its physical property. They, therefore, are given no place in this report.

Development of Fixed Physical Property
The following tabulation shows the elements of trackage that go to make up the mileage of road owned by the carrier on date of valuation. Mileage as measured by our engineers, 135.665 miles.
 * By consolidation, 157.85 miles:
 * From the Central New England Railroad[sic] Company of 1899, 57.60 miles.
 * Constructed by The Poughkeepsie Bridge Company—
 * Bridge and Loyd to Bridge east end, N.Y., 1888, 4.60 miles.
 * Constructed by The Poughkeepsie and Connecticut Railroad Company—
 * Poughkeepsie to Silvernails, N.Y., 1889, 25.00 miles.
 * Bridge east end to Poughkeepsie, N.Y., 1889, 2.00 miles.
 * Constructed by the Hudson Connecting Railroad Company—
 * Loyd to Campbell Hall, N Y., 1889, 26.00 miles.
 * From the Newburgh, Dutchess and Connecticut Railroad Company, 56.84 miles.
 * Constructed by the Dutchess and Columbia Railroad Company—
 * Dutchess Junction, N.Y., to Connecticut State line, 1870, 56.84 miles.
 * From the Dutchess County Railroad Company, 12.40 miles.
 * Constructed by the Dutchess County Railroad Company—
 * Poughkeepsie to Hopewell, N.Y., 1892, 12.40 miles.
 * From The Poughkeepsie and Eastern Railway Company, 35.00 miles.
 * Constructed by The Poughkeepsie and Eastern Railroad Company—
 * Poughkeepsie to Stissing, N.Y., 1872, 21.00 miles.
 * Pine Plains to Boston Corners, N.Y., 1872, 14.00 miles.
 * Boston Corners, N.Y., to Connecticut line, 1872 (6 miles sold to the Hartford and Connecticut Western)
 * By construction, 7.98 miles:
 * Constructed by the carrier, 3.99 miles.
 * Various small additions, 1908, 1.49 miles.
 * Poughkeepsie & Eastern Junction to State Hospital, N.Y., 1916, 1.36 miles.
 * Hospital branch, N.Y., 1916, 1.14 miles.
 * Road abandoned, 25.73 miles.
 * West Salt Point to West Pine Plains, N.Y., 1910, 15.90 miles.
 * Poughkeepsie & Eastern Junction to Vassar coal trestle, N.Y., 1911, 1.39 miles.
 * Poughkeepsie Junction to Salt Point, N.Y., 1914, 7.41 miles.
 * Wicopee Junction to Dutchess Junction, N.Y., 1916, 1.03 miles.
 * Loss in remeasurement, 4.435 miles.

The carrier in 1902 acquired 4 miles of road from The East Granby and Suffield Railroad Company which it abandoned, removing the rails.

This statement does not include 0.769 mile of yard tracks in which the carrier has joint ownership with the New York, Ontario and Western Railroad Company. The carrier maintains station and other joint facilities and participates in the use of like facilities maintained by other companies. These facilities are more fully discussed under the caption Leased Railway Property.

Leased Railway Property
The following statement shows property where, by ownership or use, the interest of another carrier becomes joint with the carrier, with annual accrual at date of valuation:
 * Owned by other carriers, used exclusively by the carrier:
 * Under date of February 4, 1890, the Hartford leased its property, consisting of 124.326 miles of single-track road, until August 30, 1940. The lease was granted originally to the Western and successively assigned to the Philadelphia and to the carrier. The lessee pays all taxes and other charges, maintains the property, and pays as rent the interest on the debt and 2 per cent annually on the capital stock. In addition, the lessee is obligated to pay the cost, not to exceed $1,000 per year, of maintaining the lessor's organization. Actually, however, there is no separate payment for organization purposes, for all officers of the lessor serve that corporation in connection with their duties to the lessee, and the other organization expenses are included with the expenses of the lessee. For the year ended on date of valuation the rent paid was (payable) $131,829.08.
 * The property of the New York, New Haven and Hartford Railroad Company, consisting of tracks and facilities between Danbury, Conn., and Hopewell, N.Y., and between Wicopee Junction and Beacon, N.Y., in the aggregate 34.948 miles of road, was used solely by the carrier on date of valuation under an agreement for joint use. The agreement for this joint use recites that a reasonable rent for the whole use of the property is $10,000 per month and provides that the carrier shall share in the payment of this rent, the taxes, and the cost of maintenance and operation in such proportion as its use shall bear to the total use by both companies. On valuation date the carrier paid the full amount of the rent agreed upon, besides bearing all expenses for taxes, maintenance, and operation (payable) $120,000.00.
 * Owned by the carrier, used jointly with other carriers:
 * Freight and classification yards at Maybrook, N.Y., joint with the New York, New Haven and Hartford Railroad Company, on basis tenant company pays proportion of agent's salary, wages of his force, and supplies, on the basis of tonnage handled and proportion of cost of transferring freight, on the basis of tonnage transferred. ......
 * Freight and classification yards at Maybrook, N.Y., joint with the Erie Railroad Company, on basis tenant company pays proportion of all expenses and fixed charges on basis of service rendered. Rental (receivable) $51,498.68.
 * Freight and classification yards at Maybrook, N Y., joint with the Lehigh and Hudson River Railway Company, on basis tenant company pays proportion of all expenses and fixed charges on the basis of services rendered. Rental (receivable) $83,612.04.
 * Yard tracks at Simsbury, Conn., joint with the New York, New Haven and Hartford Railroad Company, on basis of use of tracks considered as part of station facilities, for which tenant pays 40 per cent of maintenance. ......
 * Trackage, North Street to Hospital station on Hospital branch, 1.16 miles, at Poughkeepsie, N.Y., joint with the Poughkeepsie & Wappinger Falls Electric Railway, on basis tenant company maintains line and pays one-third of taxes for privilege of handling passenger traffic. ......
 * Owned by other carriers, used jointly with the carrier:
 * Freight yard at Danbury, Conn., joint with the New Haven and Hartford Railroad Company on basis tenant company pays proportion of expenses and fixed charges for freight house and office on basis of tonnage handled and for yard on basis of cars handled. Rental (payable) $645.00.
 * Engine terminal at Danbury, Conn., joint with the New York, New Haven and Hartford Railroad Company on basis tenant company pays proportion of expenses and fixed charges on basis of engines handled. Rental (payable) $540.00.
 * Trackage 4.05 miles Springfield, Mass., to Agawam Junction, Mass., joint with the Boston and Albany Railroad Company on basis tenant company pays $15,000 per year, also proportion of cost of water and use of engine house at $1 per stall. Rental $15,000.00.
 * Passenger station at Danbury, Conn., joint with the New York, New Haven and Hartford Railroad Company on basis tenant company pays proportion of expenses and fixed charges on basis of ticket sales. Rental (payable) $380.00.
 * Passenger station at Winsted, Conn., joint with the New York, New Haven and Hartford Railroad Company on basis tenant company pays 45 per cent of wages, maintenance, and supplies, and rental per year (payable) $3,173.93.
 * Passenger station, main tracks, and connecting tracks at Hartford, Conn., joint with the New York, New Haven and Hartford Railroad Company on basis of annual payment of $1,500 (payable). Rental $1,500.00.
 * Owned jointly with other carriers, used jointly with other carriers:
 * Yard tracks and sidings, 0.769 mile, at Campbell Hall, N.Y., joint with the New York, Ontario and Western Railway Company on basis of joint use. ......
 * Passenger station at Canaan, Conn., joint with the New York, Ontario and Western Railway Company on basis of 50 per cent of cost of supplies and maintenance. ......
 * Passenger station at Campbell Hall, N.Y., joint with the New York, Ontario and Western Railway Company and the Lehigh and New England Railroad Company on basis of joint use. ......

Corporate History
The Hartford and Connecticut Western was incorporated March 31, 1881, under a special law of Connecticut that gave authority to holders of the defaulted first-mortgage bonds of the Connecticut Western Railroad Company to form a new company and take over that property. In February, 1882, the rights and property of the Rhinebeck and Connecticut Railroad Company were acquired by an issue of stock, and on April 1, 1884, some 6 miles of road were purchased from the Poughkeepsie, Hartford and Boston Railroad Company for cash and notes. The location of the principal office is at Hartford, Conn., although the chief business office, where the accounts are kept, is at New Haven, Conn. The Hartford and Connecticut Western was operated under lease successively since August, 1889, by the Central New England and Western Railroad Company, the Philadelphia, Reading, and New England Railroad Company, and the carrier. The preceding incorporated companies, together with their successive relations, are shown in the following schedule [refer to Corporate History section of Central New England Railway].

Development of Fixed Physical Property
The following tabulation shows the elements of trackage that go to make up the mileage of road owned by the Hartford and Connecticut Western on date of valuation. Mileage as measured by commission's engineers, 124.326 miles.
 * Acquired by purchase after foreclosure:
 * From the Connecticut Western Railroad Company, 69 miles.
 * Constructed by the Connecticut Western Railroad Company, Hartford, Conn., to State Line, N. Y., 1881, 69 miles.
 * From the Rhinebeck and Connecticut Railroad Company, 35 miles.
 * Constructed by the Rhinebeck and Connecticut Railroad Company, Rhinecliff to Boston Corners, N. Y., 1882, 35 miles.
 * From the Poughkeepsie, Hartford and Boston Railroad Company, 6 miles.
 * Constructed by the Poughkeepsie, Hartford and Boston Railroad Company, Boston Corners to State Line, N. Y., 1884, 6 miles.
 * Acquired by construction:
 * Constructed by the Hartford and Connecticut Western, 14 miles.
 * Tariffville, Conn., to Agawam, Mass., 1902, 14 miles.
 * Gain in remeasurement, .326 mile.

Leased Railway Property

 * Owned by the Hartford and Connecticut Western, used exclusively by the carrier
 * The entire property of the Hartford and Connecticut Western is used by the carrier under a lease dated February 4, 1890, which expires August 30, 1940. The property was first leased for one year from August 30, 1889, to the Central New England and Western Railroad Company, a predecessor of the Philadelphia, Reading, and New England Railroad Company, which was in turn succeeded by the Central New England Railway Company of 1899. At the end of the first term the present lease became effective. The lessee is obligated under the lease to pay 2 per cent per annum on the capital stock, all interest charges, taxes, and the cost of maintenance, and to pay the cost, not in excess of $1,000 per year, of maintaining the organization of the lessor. The dividends and interest are paid by the lessee directly to those entitled to receive them, but no payment is made for maintaining the lessor's organization. The books of the Hartford and Connecticut Western do not show these payments to its security holders or the receipt of income from lease of road, although these items are returned by it in its annual reports. Its books do not show how the expense of maintaining its organization is met. At the date of the lease the value of the equipment, machinery, and tools was appraised at $209,125, which amount the lessor, at the termination of the lease, is entitled to claim either in cash or in kind. The lease, as interpreted by the counsel for the carrier, provides a dual method of reimbursing the lessee for additions and betterments which it may put upon the property. For additions and betterments required by law the lessor is required to pay, not the full amount of the lessee's expenditure, or any interest thereon, but the fair value of the improvement in its condition at the termination of the lease. For additions and betterments not required by law the lessor is required to reimburse the lessee by the issue of stocks and bonds. The improvements made by the lessee are not accounted for as improvements on leased railway property, but as advances by the lessee. The Hartford and Connecticut Western has reimbursed the lessee for part of these advances, but since no separate accounts for these two classes of additions and betterments have been kept it can not be stated how the repayments in stocks and notes are to be apportioned between them, if indeed any part may be considered during the life of the lease, as applicable to additions and betterments required by law, for which the obligation is the fair value at the termination of the lease. The unpaid part of these advances is carried on the balance sheet as nonnegotiable debt to affiliated companies.
 * Owned by another carrier, used jointly by the carrier with other carrier
 * The Hartford and Connecticut Western had the right to use the tracks of the Boston and Albany Railroad Company from Agawam to Springfield, Mass., about 4 miles. This right passed under the lease, with its other property, to the lessee.