Wikipedia:WikiProject Trains/ICC valuations/Chicago, Terre Haute and Southeastern Railway

Interstate Commerce Commission, Valuation Reports, Volume 97

Location and General Description of Property
The railroad of Chicago, Terre Haute & Southeastern Railway Company, hereinafter called the carrier, owns and operates a railroad extending from Chicago Heights, Ill., south through the eastern portion of Illinois and the, western portion of Indiana through Terre Haute to Elnora, Ind. From Elnora its line extends east, passing through Bedford and Seymour, to Westport, Ind. Between Chicago Heights and Blue Island, Ill., it operates under trackage rights over the Baltimore & Ohio Chicago Terminal Railroad and owns a terminal yard at Blue Island. In Indiana it owns several short branch lines and spurs. Passenger-train service is maintained between Terre Haute and Westport, the eastern terminus, and between Terre Haute and West Dana, Ind. North of West Dana freight service only is given. The mileage of tracks owned and used by the carrier is as follows:

Corporate History
The carrier is a successor to the Evansville & Richmond Railroad Company, Southern Indiana Railway Company, Chicago Southern Railway Company, Bedford Belt Railway Company, and The Chicago, Terre Haute & Southeastern Railway Company of Illinois. Of the predecessors of the carrier, all but the Evansville & Richmond Railroad Company retain their corporate identity, but none of them owns or operates any railroad property. These immediate predecessors of the carrier, except the Chicago, Terre Haute & Southeastern Railway Company of Illinois were originally controlled through stock ownership by John R. Walsh.

The capital stock of the Chicago, Terre Haute & Southeastern Railway Company of Illinois and the Bedford Belt Railway Company is owned directly, and of the Southern Indiana Railway Company and the Chicago Southern Railway Company indirectly by the carrier, the stock of the companies last named being owned by the Illind Securities Company, the capital stock of which is in turn owned by the Bedford Belt Railway Company. The carrier was incorporated on November 26, 1910, under the general laws of Indiana. Its principal offices are at Terre Haute. Control is vested in certain voting trustees of the carrier's capital stock and in the trustee under the income mortgage of the carrier, the bonds issued thereunder having voting rights.

Further details under this heading, including the corporate history of predecessor companies and a statement of the development of physical property of the carrier, are given in Appendix 2.

Corporate History (2)
The carrier and its predecessors are discussed below in the order of their incorporation:

Evansville & Richmond Railroad Company was incorporated at the instance of the Evansville & Terre Haute Railroad Company on September 10, 1886, under the general laws of Indiana, for the purpose of constructing a railroad from Elnora to Westport, Ind., a distance of approximately 102 miles, which line was operated by the Evansville & Terre Haute Railroad Company as a separate unit until February 27, 1894. Between that date and June 4, 1897, when the property rights and franchises passed to the Evansville & Richmond Railway Company, the road was in receivership.

The Southern Indiana Railway Company was incorporated under the name of Evansville & Richmond Railway Company. Incorporation was effected May 27, 1897, under the general laws of Indiana for the purpose of acquiring the property rights and franchise of the Evansville & Richmond Railway Company. The name of the corporation was changed to the Southern Indiana Railway Company on December 1, 1897. Myron J. Carpenter was appointed receiver on August 19, 1908. The property of the company was sold at foreclosure and conveyed to the carrier on November 30, 1910. The receiver continued operation until December 31, 1910. The corporate existence of the Southern Indiana Railway Company is still maintained.

As is indicated above, 102 miles of road was acquired from the Evansville & Richmond Railroad Company on June 4, 1897, by the Southern Indiana Railway Company while it was still operating under the name of Evansville & Richmond Railway Company. Between 1899 and 1905, the Southern Indiana Railway Company constructed 131 additional miles of road, extending from Elnora, Ind., to the Indiana-Illinois State line, including branch lines. Of the road constructed by the Southern Indiana Railway Company, 12 miles, from Elnora to Linton, Ind., were opened for operation on January 22, 1900; 85 miles, from Linton to Terre Haute, Ind., and branches on September 17, 1900; and 34 miles, from Terre Haute to the Indiana-Illinois State line, and a branch, in 1905.

With the exception of preparing roadbed and bridges for superstructure, which was done by contractors, and furnishing superstructure for steel bridges, all work was performed by the Southern Indiana Railway Company with its own forces. That part of the line of the Evansville & Richmond Railroad Company between Bedford and Westport, about 60 miles, had been washed out in March, 1897, and was in that condition when taken over by the Southern Indiana Railway Company. It was put in shape for operation by January, 1898, and the entire line from Elnora to Westport was reconstructed between that date and October, 1904.

Chicago Southern Railway Company was incorporated on September 26, 1904, under the general laws of Illinois, for the purpose of acquiring, by construction or otherwise, a railroad from Chicago to a point on the Indiana-Illinois State line in Edgar County, Ill., thence to Paris, and from some point on this line in Vermillion County, Ill., to East St. Louis, and from some point on the line last mentioned in Shelby County, to Salem, Ill. At reorganization it owned about 114 miles of road, Chicago Heights to Quaker, Ill., which was double tracked for several miles. The road was substantially all constructed for the Chicago Southern Railway Company by others. T. W. Kinser & Co. graded the roadbed and made foundations for bridges, J. H. Roberts laid the track from Chicago Heights to within a short distance of the southern terminus, and the Southern Indiana Railway Company completed the track laid. The Chicago Bridge & Iron Works furnished material and constructed all steel bridges. Construction was begun in 1904 and the road was finished and opened for operation in November, 1907. From August 26, 1908, to December 31, 1910, the property was operated by a receiver. The property of the Chicago Southern Railway Company was acquired by the Chicago, Terre Haute & Southeastern Railway Company of Illinois on December 1, 1910. The Chicago, Terre Haute & Southeastern Railway Company of Illinois, however, never operated the property but on December 22, 1910, conveyed it to the carrier.

Bedford Belt Railway Company was incorporated on March 31, 1892, under the general laws of Indiana for the purpose of constructing the railroad described below. At date of transfer to the carrier it owned about 4 miles of main track between Bedford and Oolitic, Ind., which had been constructed by the Western Contract & Construction Company and had been opened for operation on May 1, 1893.

Chicago, Terre Haute & Southeastern Railway Company of Illinois was incorporated on November 30, 1910, under the general laws of Illinois. As previously stated, it acquired the property of the Chicago Southern Railway Company on December 1, 1910, and on December 22, 1910, conveyed it to the carrier.

The carrier was incorporated on November 26, 1910, under the general laws of Indiana, specifically for the purpose of acquiring the railroad and property of the Southern Indiana Railway Company. The charter permits the carrier to acquire other railroad property either by purchase or construction. Its principal office is in Terre Haute. In addition to the mileage acquired by purchase, to which reference has been made in the discussion of predecessor companies, the carrier has constructed from time to time spurs to coal mines, etc., aggregating 16 miles. A recapitulation of the manner in which the carrier acquired its line is given below.

Development of Fixed Physical Property
The owned mileage of the carrier, 362 miles, was acquired as follows:

Leased Railway Property
There is nothing to report under this heading for the Evansville & Richmond Railroad Company or the Bedford Belt Railway Company.

Southern Indiana Railway Company operated the property of the Chicago Southern Railway Company from November, 1907, to August 10, 1908, date of appointment of receiver, under lease providing for the payment by the Southern Indiana Railway Company of interest on bonds of the Chicago Southern Railway Company, taxes, and interest on cost of additions and betterments.

Under lease dated July 1, 1898, the Southern Indiana Railway Company operated the property of the Bedford Belt Railway Company at a rental equal to 40 per cent of the gross earnings from operation. This rental was later increased to 50 per cent of the gross.

The main features of agreements under which the carrier uses property of other companies and under which other companies use the tracks and facilities of the carrier are as follows:

Property of others used jointly by the carrier and names of owning companies are as follows:

The carrier uses jointly 12.47 miles of track between Harvey Junction and Chicago Heights, Ill., under a lease from the Baltimore & Ohio Chicago Terminal Company for a period of 99 years, from August 1, 1913, at a fixed rental of $21,000 per annum plus maintenance, operation, taxes, etc., on a wheelage basis. During 1916 the income accruals amounted to $23,111.51 and accruals of operating expenses to $25,692.22.

The carrier uses jointly with the Vandalia Railroad Company, successor to the Terre Haute & Indianapolis Railroad Company, 0.30 mile of track and a depot at Terre Haute, Ind. The carrier uses the track of the Vandalia Railroad Company under a lease for a period of 25 years from October 1, 1900, entered into by predecessor companies and assumed by the carrier, at a consideration of $200 a month. The carrier used the depot, under a lease for the period September 1, 1900, to August 15, 1913, and thereafter until terminated by one year's notice, which was also entered into by predecessor companies and was assumed by the carrier, at a rental based on the number of cars handled in and out of the station.

Property of the carrier used jointly by other companies is as follows: The Chicago & Eastern Illinois Railroad Company uses jointly 6.63 miles of the carrier's tracks between Starr and Brewer, Ill., under a lease for a period of 25 years from July 8, 1915, which was entered into by the predecessor companies and assumed by the carrier, the consideration for which is 2.5 per cent of the cost of construction, plus maintenance, operation, and taxes, on a wheelage basis. During 1916 income accrued amounted to $13,985.53 and operating expenses accrued to $11,961.58.

The Chicago, Indianapolis & Louisville Railway Company uses jointly 1.34 miles of the carrier's tracks near Gilmour, Ind., under a lease running from year to year from July 20, 1912, and subject to cancellation upon 60 days' notice by the lessee, at a rental of $921.20 a year, with maintenance, repairs, and free switching of all cars routed via the carrier's railroad. The income accrued during 1916 amounted to $441.20 and operating expenses accrued to $480.