Wikipedia:WikiProject Trains/ICC valuations/Choctaw, Oklahoma and Gulf Railroad

Interstate Commerce Commission, Valuation Reports, Volume 24

Location and General Description of Property
The railroad of Choctaw, Oklahoma and Gulf Railroad Company, herein called the Choctaw, Oklahoma and Gulf, is a single-track, standard-gauge, steam railroad, of which the main line extends from Hopefield, Ark., a point on the Mississippi River opposite Memphis, Tenn., westwardly through the States of Arkansas and Oklahoma, to the Texas-Oklahoma boundary at Texola, Okla. Branch lines extend from Benton to Hot Springs and Malvern, Ark.; Branch Junction to Ardmore, Okla.; Tecumseh Junction to Asher, Okla.; and Geary, Okla., to Anthony, Kans. Besides the above-described property, the Choctaw, Oklahoma and Gulf owns certain track other than main track located at Memphis, Tenn. All of the carrier property of the Choctaw, Oklahoma and Gulf is leased to and operated by the carrier. The wholly owned mileage of the Choctaw, Oklahoma and Gulf embraces the following:

The Choctaw, Oklahoma and Gulf also owns jointly with other carriers 3.067 miles of track other than main track located at various terminals along its line.

Corporate History
The Choctaw, Oklahoma and Gulf was incorporated under act of Congress, approved August 24, 1894, for the purpose of acquiring the property, rights, and franchises of the Choctaw Coal and Railway Company, which had been sold under foreclosure, on September 8, 1894, to a reorganization committee. This property, embracing approximately 98 miles of main line, was conveyed to the Choctaw, Oklahoma and Gulf on October 3, 1894. The Choctaw, Oklahoma and Gulf subsequently, on the dates indicated below, acquired the property, rights, and franchises of the following companies, the main-line mileage acquired being also given in the table below:

The Choctaw and Memphis Railroad Company was preceded by five antecedent companies. None of the other companies, the property of which was acquired by the Choctaw, Oklahoma and Gulf, acquired any of its property from predecessors.

Development of Fixed Physical Property
The owned mileage of the Choctaw, Oklahoma and Gulf was acquired as follows:

Leased Railway Property
The entire property of the Choctaw, Oklahoma and Gulf, except its coal mining property and unsold land-grant lands, is leased for a period of 999 years to the carrier for sole operation, under agreement dated March 24, 1904. Under the terms of this lease, the carrier pays as rental a sum equal to the interest on the Choctaw, Oklahoma and Gulf's funded debt obligations. Such interest amounted to $729,850 for the year ended June 30, 1915. The carrier is also obligated to pay all taxes on the property.

Provision is made in the lease that the Choctaw, Oklahoma and Gulf shall, at the termination of the lease, reimburse the carrier for all additions and betterments made to the property by the carrier at the then value, and will assume any mortgage on the property created to improve it, the amount of which shall be applied to reduce the Choctaw, Oklahoma and Gulf's liability to the carrier. To date, the carrier has expended $4,420,175.24 in additions and betterments to the property of the Choctaw, Oklahoma and Gulf.

Provision is also made in the lease for the assumption by the carrier of the Choctaw, Oklahoma and Gulf lease of the property of the White & Black River Valley Railway dated June 30, 1900. The terms of this lease are discussed in the report on the carrier.