Wikipedia:WikiProject Trains/ICC valuations/Denver and Rio Grande Railroad

Interstate Commerce Commission, Valuation Reports, Volume 26

Location and General Description of Property
The railroad operated by The Denver and Rio Grande Railroad Company, herein called the carrier, is a steam railroad located in Colorado, Utah, and New Mexico. The operated mileage comprises a principal main line between Denver, Colo., and Ogden, Utah, with many branch lines serving the mining districts of the territory traversed. The railroad is single track with the exception of 141.436 miles of second main track at various locations. The principal main line and some of the more important branches are standard gage and the remainder are narrow gage. Some of the standard-gage tracks contain a third rail in order to operate narrow and standard-gage equipment over the same tracks, while in some instances two extra rails are laid between standard-gage tracks for sole use of narrow-gage equipment.

The owned railroad includes the portions of the principal main line extending in a general westerly direction from Denver to Rifle, Colo., via Pueblo; and from Grand Junction, Colo., to Ogden, Utah, via Salt Lake City. The more important branch lines project from Pueblo to Trinidad, Cuchara Junction to Creede, Antonito to Silverton, Salida to Grand Junction, via Montrose, all in Colorado; Alamosa, Colo., to Santa Fe, N. Mex.; Carbon Junction, Colo., to Farmington, N. Mex.; and Thistle to Marysvale, Utah. Property owned by a lessor of the carrier forms a connecting link in the main line between Rifle and Grand Junction, Colo., while property leased from other carriers provides additional branch lines in Colorado. The principal cities served by this road are Denver, Colorado Springs, Pueblo, Trinidad, Alamosa, Durango, Salida, Leadville, and Grand Junction, Colo.; Santa Fe, N. Mex.; and Provo, Salt Lake City, and Ogden, Utah.

The carrier wholly owns and uses 2,419.274 miles of road, of which 1,674.652 miles is standard gage and 744.622 miles is narrow gage; wholly uses but does not own 104.522 miles of road, of which 68.482 miles is standard gage and 36.040 miles is narrow gage; jointly owns and uses 1.732 undivided miles of standard-gage road, and jointly uses but does not own 0.716 undivided mile of standard-gage road. There is located along the wholly owned and used standard-gage tracks 100.677 miles of third rail; and along the jointly owned and used standard-gage tracks 0.781 undivided mile of third rail.

The property wholly used but not owned by the carrier comprises 65.616 miles of standard-gage road leased from two lessor companies included in this report, as hereinafter described, and 38.906 miles leased from other companies. The latter mileage consists of branch lines projecting from Chicosa Junction to Forbes Junction, Parlin to Quartz, and Gunnison to Baldwin, all in Colorado, aggregating 37.207 miles of road, of which 1.167 miles is standard gage and 36.040 miles is narrow gage, leased from The Colorado and Southern Railway Company; and a branch line extending from Hezron Junction to Hezron, Colo., comprising 1.699 mile of standard-gage road, leased from The Colorado & Wyoming Railway Company. The mileage jointly used but not owned consists of tracks in the vicinity of Chandler Junction, Colo., owned by The Colorado and Southeastern Railroad Company, and used jointly by the carrier and The Atchison, Topeka and Santa Fe Railway Company.

Introductory
The carrier is a corporation of the States of Utah and Colorado, having its principal office at Denver, Colo.

The books of account of The Denver and Rio Grande Railroad Company (of 1886) were not closed at date of consolidation in 1908, but were continued to record the transactions of the carrier, without separation of the accounts, to date of valuation. For that reason portions of this report include the transactions of both companies.

The records reviewed do not indicate that the carrier is controlled by any individual or corporation. On the other hand, the carrier controls, through ownership of a majority of their outstanding capital stock, the Rio Grande Southern Railroad Company, The Salt Lake City Union Depot and Railroad Company, the Globe Express Company and The Rio Grande Junction Railway Company. Each of the above-named companies operates its own property except The Rio Grande Junction Railway Company, whose property is leased to the carrier. The carrier controls equally with four other railroad companies The Pueblo Union Depot and Railroad Company and with five other railroad companies The Denver Union Terminal Railway Company, whose properties are separately operated for the benefit of the controlling companies.

The property of the carrier has been operated by its own organization from July 31, 1908, the date of consolidation, to December 31, 1917, since which date the property has been operated by the United States Railroad Administration.

A judgment in favor of the Equitable Trust Company, trustee of a mortgage securing first-mortgage bonds of the Western Pacific Railway Company which were guaranteed by the carrier, resulted in the receivership of the carrier, effective January 26, 1918, which had not been terminated on date of valuation.

Corporate History
The carrier was incorporated July 31, 1908, under the general laws of Colorado and Utah, for the purpose of acquiring, by consolidation, the property, rights, and franchises of The Denver and Rio Grande Railroad Company (of 1886) and The Rio Grande Western Railway Company. Pursuant to the above purpose, the carrier acquired at its organization the properties, rights, and franchises of the companies named, and later acquired by purchase the properties of other companies. The carrier, itself, and those corporations, together with their predecessors, total 42 different corporations and comprise the line of corporate succession culminating in the carrier as at present constituted. The following chart shows the names of the corporations, the respective dates of incorporation, and, for each predecessor, the date of succession, the immediately succeeding corporation, and the manner of succession. Reference to each of these corporations is made in the last column by its respective number shown in the first column.

Development of Fixed Physical Property
The owned mileage of the carrier, amounting to 2,419.274 miles was acquired partly by consolidation, partly by purchase, and partly by construction. Of the 41 corporations that comprise the line of succession culminating in the carrier as at present constituted, 12 corporations did not construct any road or other common-carrier property. Those corporations were:
 * The Denver and Rio Grande Western Railway Company (first company).
 * The Grand Valley Railway Company.
 * The Leadville, Ten Mile and Breckenridge Railway Company.
 * The Poncho, Marshall and Gunnison Toll Road Company.
 * The Rio Grande and Santa Fe Railroad Company.
 * Salt Lake and Fort Douglas Railway Company (of 1883).
 * Salt Lake and Park City Railway Company.
 * The Santa Fe Southern Railway Company.
 * Sevier Valley Railway Company.
 * The State Line and Denver Railway Company.
 * The Trinidad and Denver Terminal and Railway Company.
 * Utah Western Railway Company.

The mileage of road constructed by the carrier itself and remaining corporations, the years when the various portions of the line were constructed, and the manner in which the carrier acquired the property are indicated in the following table, wherein, to facilitate comparison with the table showing the corporate succession, previously given, the same order of corporations is maintained:

In addition to the 2,419.274 miles inventoried as of date of valuation, the carrier owns jointly 1.732 miles of road.

The recorded mileage shown above in amount 2,653.99 miles is that stated by the carrier in its report on its corporate history. The reason for the difference of 14.736 miles between the recorded mileage after adjustments and the mileage inventoried as of date of valuation has not been determined from the records reviewed. The carrier has not filed any report in response to the valuation order in respect to property abandoned, and the records reviewed do not indicate what portion of the difference of 14.736 miles is due to abandonments, conversion of main or branch line tracks to other classifications, or to changes of line incidental to conversion of the road from a narrow gage to a three-rail and later to a standard-gage line.

The greater portion of the road was constructed originally as a narrow-gage line, 1,635 miles of road having been so constructed as of January 1, 1890. During the period from 1882 to 1902, the narrow-gage mileage had been reduced to 918 miles by conversion of 360 miles to three-track road, and the remainder to standard gage. As of date of valuation, the narrow-gage mileage had been reduced further to 744 miles and the three-rail mileage had been reduced to 100 miles.

Leased Railway Property
The carrier used property owned by other companies and other companies used property owned by the carrier, on December 31, 1917, to the extent indicated below. The arrangements then in effect have been continued by the United States Railroad Administration and are in effect as of date of valuation.

In addition to the foregoing, the carrier and The Colorado Railroad Company each own a single-track road, 46.51 miles, between Southern Junction, at Pueblo, and Walsenburg, Colo. Each company has trackage rights over the line of the other company. No rental is paid.

The carrier has arrangements with other companies, covering the sole or joint use of common facilities, the details of which have not been ascertained.

The carrier owns certain telegraph property along its road and the Western Union Telegraph Company exercises the privilege of using jointly with the owner certain of this telegraph property. On the other hand the carrier has the joint use of certain telegraph property owned by the Western Union Telegraph Company. The details covering the terms of use were not obtained from the records reviewed.

Certain locomotive and passenger-train-car equipment of the carrier is used by other companies, under lease, and the carrier uses certain roadway machines owned by others. No details of the terms of use were obtained from the records reviewed.

Lessor Companies

 * Rio Grande Junction Railway
 * Kenilworth and Helper Railroad

The Denver and Rio Grande Railroad Company (of 1886)
Introductory

The records reviewed do not indicate that The Denver and Rio Grande Railway[sic Railroad] Company (of 1886) was controlled by any individual or corporation on July 31, 1908, the date of consolidation. The largest stockholders were George J. Gould and H. M. Walker. On the other hand, this company controlled directly through ownership of capital stock and indirectly through ownership of capital stock of The Rio Grande Western Railway Company, the following transportation companies whose common-carrier properties it operated:

This company similarly controlled, but did not operate, the properties of the following-named companies:

The Denver and Rio Grande Railroad Company (of 1886) owned about 60 per cent of the capital stock of The Rio Grande Junction Railway Company whose property it operated jointly.

The property of The Denver and Rio Grande Railroad Company (of 1886) was operated by its own organization from the date of its formation, July 14, 1886, until July 31, 1908, date of consolidation. The railroad operated by The Denver and Rio Grande Railroad Company (of 1886) was a single-track, steam railroad, located in Colorado, New Mexico, and Utah, and aggregated about 2,554 miles. Of the 2,554 miles of road operated, 1,551 miles was standard gage, 795 miles was narrow gage, and 208 miles was three-rail track.

The owned mileage amounted to 1,662 miles and consisted of three main lines extending from Denver to Rock Creek, Colo., Cuchara Junction to Silverton, Colo., and Salida, Colo., to the Colorado-Utah line. The principal branches reached Engleville, Wagon Wheel Gap, Manitou, Dillon, and Anthracite, Colo., and Espanola, N. Mex. The main lines were connected by lines operated under lease.

The mileage operated under lease and through stock ownership amounted to 820 miles extending from the Colorado-Utah State line to Ogden, Utah, with branch lines to various points in Utah, Colorado, and New Mexico.

The Denver and Rio Grande Railroad Company (of 1886) used under trackage rights 69 miles of the road of other carriers.

Development of Fixed Physical Property

Of the 1,662 miles of road owned by The Denver and Rio Grande Railroad Company (of 1886) on the date of consolidation, it had acquired 1,301 miles by purchase and 361 miles by construction. Details with respect to the construction of the property are given in the chapter on development of fixed physical property in the report on the carrier.

Denver and Rio Grande Western Railway Company
Introductory The general accounting records of the Denver and Rio Grande Railway Company that were obtained were incomplete for the period from July 1, 1881, to date of sale. Therefore, but partial information can be given from its accounts regarding its financial dealings, corporate operations, or investments. However, certain information indicated hereinafter has been taken from sources other than the accounting records of the company. The records reviewed do not indicate that the Denver and Rio Grande Railway Company was controlled by any individual or corporation on July 14, 1886, the date of foreclosure sale, nor, on the other hand, that it then controlled any common-carrier corporation.

The property of this company was operated by its own organization from January 1, 1872, when the first section of the road was placed in operation, until the date of sale, except during the period from December 13, 1878, to about August 14, 1879, when it was operated by the Atchison, Topeka and Santa Fe Railroad Company under lease. The railroad operated by the Denver and Rio Grande Railway Company on date of sale amounted to 1,293.6 miles, all owned. It consisted of a single-track, narrow-gage, steam railroad, located in the States of Colorado and New Mexico, and extended from Denver to Engleville, Wagon Wheel Gap, and Rock Creek, Colo., with various branches.

Development of Fixed Physical Property

Of the 1,293.6 miles of road owned by the Denver and Rio Grande Railway Company on date of sale, it had acquired 2 miles from The Canon Coal Railway Company, 22.3 miles by purchase from the Pueblo and Arkansas Valley Railroad Company, and 1,269.3 miles by construction. The construction work was performed by the Union Contract Company and The Rio Grande Extension Company. The secretary of the Union Contract Company was also secretary of the Denver and Rio Grande Railway Company. Further details with respect to the construction of this property are given in the chapter on development of fixed physical property in the report on the Denver and Rio Grande.

The Canon Coal Railway Company
No accounting records of The Canon Coal Railway Company were obtained. Therefore, no information can be given from its accounts regarding its financial dealings, corporate operations, or investments. However, certain data given below were obtained from the articles of incorporation and from the report of the carrier on its corporate history. The records reviewed do not indicate whether The Canon Coal Railway Company was controlled by any individual or corporation on November 1, 1878, the date of sale, nor, on the other hand, whether it then controlled any common-carrier corporation.

The report of the Denver and Rio Grande on its corporate history states that the property of The Canon Coal Railway Company was operated by its on organization from November 1, 1872, when construction was completed, until the date of sale. The railroad owned by this company on the date of sale consisted of 2 miles of single-track, narrow-gage, steam railroad, extending from La Bran (Florence) to Coal Mines, Colo., and was acquired by construction during 1872.

The Leadville, Ten Mile and Breckenridge Railway Company
No accounting records of The Leadville, Ten Mile and Breckenridge Railway Company were obtained. Therefore, no information can be given from its accounts regarding its financial dealings or investments. However, certain data given below were obtained from the articles of incorporation and from the deed covering the sale of the property. The records reviewed do not indicate whether The Leadville, Ten Mile and Breckenridge Railway Company was controlled by any individual or corporation on August 6, 1880, the date of sale, nor, on the other hand, whether it then controlled any common-carrier corporation.

This company did not construct any railroad, but owned on the date of sale a right of way between Leadville and Breckenridge, Colo., on which some work had been performed. This property was sold to the Denver and Rio Grande Railway Company for $15,000 cash.

The Poncho, Marshall and Gunnison Toll Road Company
No accounting records of The Poncho, Marshall and Gunnison Toll Road Company were obtained. Therefore, no information can be given from its accounts regarding its financial dealings or investments. However, certain data given below were obtained from the articles of incorporation and from an agreement relating to the sale of the property. The records reviewed do not indicate whether The Poncho, Marshall and Gunnison Toll Road Company was controlled by any individual or corporation on February 17, 1881, the date of sale, nor, on the other hand, whether it then controlled any common-carrier corporation.

This company did not construct any railroad, but owned on the date of sale a wagon road located in Colorado, a description of which was not obtained. This property was sold to the Denver and Rio Grande Railway Company for $13,000 cash.

The Grand Valley Railway Company
No accounting records of The Grand Valley Railway Company were obtained. Therefore, no information can be given from its accounts regarding its financial dealings or investments. However, certain data given below were obtained from the articles of incorporation and agreements on file. The records reviewed do not indicate whether The Grand Valley Railway Company was controlled by any individual or corporation on May 24, 1887, the date of sale, nor, on the other hand, whether it then controlled any common-carrier corporation.

This company did not construct any railroad, but owned on the date of sale certain right of way in the counties of Eagle, Pitkin, and Garfield.

The Trinidad and Denver Railroad Company
No accounting records of The Trinidad and Denver Railroad Company were obtained. Therefore, no information can be given from its accounts regarding its financial dealings, corporate operations, or investments. However, certain data given below were obtained from the articles of incorporation and from the records of The Denver and Rio Grande Railroad Company (of 1886). The records reviewed do not indicate whether The Trinidad and Denver Railroad Company was controlled by any individual or corporation on September 7, 1888, the date of sale, nor, on the other hand, whether it then controlled any common-carrier corporation.

The report of the carrier on its corporate history states that the property of The Trinidad and Denver Railroad Company was operated by its own organization from August 2, 1887, when construction was completed, until the date of sale. The railroad owned, by this company on the date of sale consisted of 4.26 miles of single-track, narrow-gage, steam railroad, extending from El Moro to Trinidad, Colo., and was acquired by construction during 1887.

The Colorado Railway Company
No accounting records of The Colorado Railway Company were obtained. Therefore, no information can be given from its accounts regarding its financial dealings or investments. However, certain data given below were obtained from the articles of incorporation, an agreement relating to the sale of the property and from the records of The Denver and Rio Grande Railroad Company (of 1886). The records reviewed do not indicate whether The Colorado Railway Company was controlled by any individual or corporation on December 24, 1888, the date of sale, nor, on the other hand, whether it then controlled any common-carrier corporation.

This company did not construct any railroad, but owned on the date of sale a partially graded roadbed between Glenwood Springs and Elk Creek, Colo. in connection with which it expended $26,551.50. The Denver and Rio Grande Railroad Company (of 1886) in its acquisition of the property of this company issued its voucher to The Colorado Railway Company for that amount, which it charged to an account styled "Rifle Creek Extension."

The Trinidad and Denver Terminal and Railway Company
No accounting records of The Trinidad and Denver Terminal and Railway Company were obtained. Therefore no information can be given from its accounts regarding its financial dealings or investments. However, certain data given below were obtained from the articles of incorporation and from the report of the carrier on its corporate history. The records reviewed do not indicate whether The Trinidad and Denver Terminal and Railway Company was controlled by any individual or corporation on June 9, 1899, the date of sale, nor, on the other hand, whether it then controlled any common-carrier corporation.

The records reviewed do not indicate that this company constructed any railroad property.

The Denver, Clear Creek and Western Railway Company
No accounting records of The Denver, Clear Creek and Western Railway Company were obtained. Therefore, no information can be given from its accounts regarding its financial dealings, corporate operations, or investments. However, certain data given below were obtained from the articles of incorporation and from the records of The Denver and Rio Grande Railroad Company (of 1886). The records reviewed do not indicate whether the company was controlled by any individual or corporation on August 12, 1889, the date of sale, nor, on the other hand, whether it then controlled any common-carrier corporation.

The report of the carrier on its corporate history states that the property of The Denver, Clear Creek and Western Railway Company was operated by its own organization from January 21, 1889, when construction was completed, until the date of sale. The railroad owned by this company on the date of sale consisted of 2.51 miles of single-track, steam railroad, extending from Military Junction to Fort Logan, Colo., and was acquired by construction which was completed January 21, 1899.

The Rio Grande Western Railway Company
Introductory

The Rio Grande Western Railway Company and The Denver and Rio Grande Railroad Company (of 1886) were consolidated to form the carrier, as the result of arrangements made by the stockholders about 1901 which were not legally consummated until articles of consolidation were signed on June 9, 1908, and deeds were given to the carrier on July 31, 1908.

The accounting records of The Rio Grande Western Railway Company were opened as of July 1, 1889, and were discontinued as of June 30, 1902. As of July 1, 1902, The Denver and Rio Grande Railroad Company (of 1886), which had then acquired over 99.8 per cent of the capital stock of The Rio Grande Western Railway Company, in anticipation of a consolidation which was not effected until July 31, 1908, took over the operation of the latter company's railroad, and recorded in its own accounts that company's assets and liabilities. All transactions relating to the operation and improvement of The Rio Grande Western Railway Company's property for the period from July 1, 1902, to July 31, 1908, are inseparably included in the accounts of The Denver and Rio Grande Railroad Company (of 1886). Certain issues of The Rio Grande Western Railway Company's securities, and certain dealings in investment securities owned by The Rio Grande Western Railway Company, for the period from July 1, 1902, to July 31, 1908, were separately recorded in the accounts of The Denver and Rio Grande Railroad Company (of 1886) and have been separately stated in this report.

The Rio Grande Western Railway Company on date of consolidation was controlled, through ownership of over 99.9 per cent of its capital stock, by The Denver and Rio Grande Railroad Company (of 1886), which latter company had acquired such stock, principally in 1901, through exchange of its own stock in anticipation of a consolidation which was not effected until July 31, 1908. On the other hand, The Rio Grande Western Railway Company then controlled the following-named common-carrier corporations:
 * Castle Valley Railway Company.
 * Copper Belt Railroad Company.
 * Sevier Railway Company.
 * Tintic Range Railway Company.
 * Utah Central Railroad Company.

The common-carrier properties of these companies were operated, through lease or through stock control, by The Denver and Rio Grande Railroad Company (of 1886) on date of consolidation. The company also controlled the San Pete Valley Railway Company, which operated its own properties.

The property of The Rio Grande Western Railway Company was operated by the company's own organization from the various dates of acquisition to June 30, 1902, and was operated through stock control by The Denver and Rio Grande Railroad Company (of 1886) from July 1, 1902, to date of consolidation. The railroad owned by The Rio Grande Western Railway Company on date of consolidation was a single-track, steam railroad, located in the States of Utah and Colorado, and aggregating 511.27 miles. It consisted of a main line extending from Ogden, Utah, to Crevasse, Colo., with numerous branches. All the mileage, except a few unimportant tramways, was standard gage.

Development of Fixed Physical Property

The Rio Grande Western Railway Company acquired its owned mileage in the manner indicated hereunder.

The mileage acquired in the reorganization and consolidation of 1889 was changed from narrow to standard gage, principally in 1889 and 1890.

Of the mileage constructed for this company, a part was built under contract by The Rio Grande Western Construction Company, an affiliated corporation. The remaining mileage was constructed for this company either by its own forces or by forces of The Denver and Rio Grande Railroad Company (of 1886). Further details regarding the construction of mileage are given in the development of fixed physical property chapter in the report on the carrier.

The State Line and Denver Railway Company
The State Line and Denver Railway Company was incorporated incident to the reorganization of The Denver and Rio Grande Western Railway Company. The committee conducting the reorganization secured the incorporation of The State Line and Denver Railway Company on May 16, 1889, with charter rights authorizing the ownership and operation of railroad property in Colorado, and on the same date consolidated that company with The Denver and Rio Grande Western Railway Company, a Utah corporation, to form The Rio Grande Western Railway Company.

The State Line and Denver Railway Company did not maintain accounting records, it did not acquire or operate any railroad property, and it did not issue any securities.

The Denver and Rio Grande Western Railway Company
Introductory

No accounting records of The Denver and Rio Grande Western Railway Company were obtained. Therefore, no information can be given from the accounts regarding its financial dealings, corporate operations, or investments. Certain information shown below was obtained from the company's latest trial balance, from annual reports to this commission, and from other sources, as indicated. The records reviewed do not indicate whether or not this company was controlled by any individual or corporation on May 16, 1889, the date it was reorganized, through consolidation with The State Line and Denver Railway Company, to form The Rio Grande Western Railway Company. On the other hand, the records reviewed do not indicate that this company, itself, then controlled any other common-carrier corporation.

The property of this company was operated by its own organization from the dates acquired by it to July 31, 1882; under lease by the Denver and Rio Grande Railway Company from August 1, 1882, to July 11, 1884; by a receiver from July 12, 1884, to July 31, 1886; and again by the company's own organization from August 1, 1886, to date of reorganization and consolidation. The railroad owned on date of reorganization and consolidation consisted of about 368 miles of single-track, narrow-gage, steam railroad, located in Utah. It consisted of a main line extending from Ogden to a point on the Utah-Colorado State line, with several branches.

Development of Fixed Physical Property

Of the 368 miles of road owned by The Denver and Rio Grande Western Railway Company on date of reorganization and consolidation, it had acquired 18.3 miles by purchase from the Bingham Canon and Camp Floyd Rail Road Company, 16.2 miles by purchase from the Wasatch and Jordan Valley Railroad Company, 60.3 miles by purchase from the Utah and Pleasant Valley Railway Company, and 289.9 miles by construction. Of the mileage acquired by purchase, 16.7 miles were abandoned about 1882. The construction work was performed by The Rio Grande Western Construction Company, an affiliated corporation. Further details with respect to the construction of this property are given in the chapter on development of fixed physical property in the report on the carrier.

Sevier Valley Railway Company
No accounting records of the Sevier Valley Railway Company were obtained. Therefore, no information can be given from the accounts regarding its financial dealings or investments. Certain information shown below was obtained from other corporate records of the company. The records reviewed do not indicate whether the Sevier Valley Railway Company was controlled by any individual or corporation on July 21, 1881, date of consolidation, nor, on the other hand, whether this company, itself, then controlled any common-carrier corporation. The records reviewed do not indicate that this company owned any common carrier property on the date of consolidation. The authorized capital stock of the Sevier Valley Railway Company was $10,000,000 par value, divided into shares of $100 par value each, all of which was classified as common stock. How much of the stock was actually issued and what considerations were received therefor could not be ascertained from the records reviewed.

Salt Lake and Park City Railway Company
No accounting records of the Salt Lake and Park City Railway Company were obtained. Therefore, no information can be given from the accounts regarding its financial dealings, corporate operations, or investments. Certain information shown below was obtained from other corporate records of the company. The records reviewed do not indicate whether the Salt Lake and Park City Railway Company was controlled by any individual or corporation on July 21, 1881, date of consolidation, nor, on the other hand, whether this company, itself, then controlled any common-carrier corporation. The records reviewed do not indicate that this company owned any common-carrier property on the date of consolidation. The authorized capital stock of the Salt Lake and Park City Railway Company was $520,000 par value, divided into shares of $100 par value each, all of which was classified as common stock. How much of the stock was actually issued and what considerations were received therefor could not be ascertained from the records reviewed.

The Denver and Rio Grande Western Railway Company (First Company)
No accounting records of The Denver and Rio Grande Western Railway Company (first company) were obtained. Therefore, no information can be given from the accounts regarding its financial dealings or investments. Certain information shown below was obtained from other corporate records of the company. The records reviewed do not indicate whether The Denver and Rio Grande Western Railway Company (first company) was controlled by any individual or corporation on July 21, 1881, the date of consolidation, nor, on the other hand, whether this company, itself, then controlled any common-carrier corporation. The records reviewed do not indicate that this company owned any common-carrier property on date of consolidation. The authorized capital stock of The Denver and Rio Grande Western Railway Company (first company) was $37,480,000 par value, divided into shares of $100 par value each, all of which was classified as common stock. How much of the stock was actually issued and what considerations were received therefor could not be ascertained from the records reviewed.

Bingham Canon and Camp Floyd Rail Road Company
No accounting records of the Bingham Canon and Camp Floyd Rail Road Company were obtained. Therefore, no information can be given from the accounts regarding its financial dealings, corporate operations, or investments. Certain information shown below was obtained from other corporate records of the company. The records reviewed do not indicate whether the Bingham Canon and Camp Floyd Rail Road Company was controlled by any individual or corporation on September 1, 1881, the date of sale, nor, on the other hand, whether this company, itself, then controlled any common-carrier corporation.

The report of the Denver and Rio Grande on its corporate history states that the property of the Bingham Canon and Camp Floyd Rail Road Company was operated by its own organization from 1873, when construction of its road was completed, until the date of sale.

The Bingham Canon and Camp Floyd Rail Road Company owned on the date of sale 18.3 miles of single-track, narrow-gauge, steam railroad, extending from Sandy to Bingham, wholly within the State of Utah. This property was all acquired by construction during the year 1873. It is not known whether the construction work was performed by the forces of the Bingham Canon and Camp Floyd Rail Road Company or by contract.

Wasatch and Jordan Valley Railroad Company
No accounting records of the Wasatch and Jordan Valley Railroad Company were obtained. Therefore, no information can be given from the accounts regarding its financial dealings, corporation operations, or investments. Certain information shown below was obtained from other corporate records of the company. The records reviewed do not indicate whether the Wasatch and Jordan Valley Railroad Company was controlled by any individual or corporation on December 31, 1881, date of foreclosure sale, nor, on the other hand, whether this company, itself, then controlled any common-carrier corporation.

The report of the Denver and Rio Grande on its corporate history states that the property of the Wasatch and Jordan Valley Railroad Company was operated by its own organization from 1873, the date of completion of the first section of its road, until the date of sale. The Wasatch and Jordan Valley Railroad Company owned on the date of sale 16.2 miles of single-track, narrow-gage, steam railroad, extending from Sandy to Alta, wholly within the State of Utah. This property was all acquired by construction during the period 1873 to 1876. It is not known whether the construction work was performed by the forces of the Wasatch and Jordan Valley Railroad Company or by contract.

Utah and Pleasant Valley Railway Company
No accounting records of the Utah and Pleasant Valley Railway Company were obtained. Therefore, no information can be given from the accounts regarding its financial dealings, corporate operations, or investments. Certain information shown below was obtained from other corporate records of the company. The records reviewed do not indicate whether the Utah and Pleasant Valley Railway Company was controlled by any individual or corporation on June 14, 1882, date of foreclosure sale, nor, on the other hand, whether this company, itself, then controlled any common-carrier corporation.

The report of the Denver and Rio Grande on its corporate history states that the property of the Utah and Pleasant Valley Railway Company was operated by its own organization from 1878, the date of completion of the first section of its road, until the date of sale. The Utah and Pleasant Valley Railway Company owned on the date of sale 60.3 miles of single-track, narrow-gage, steam railroad, extending from Provo, to Pleasant Valley, wholly within the State of Utah. This property was all acquired by construction during the years 1878 and 1879. It is not known whether the construction work was performed by the forces of the Utah and Pleasant Valley Railway Company or by contract.

Carbon County Railway Company
Introductory

The Carbon County Railway Company was incorporated in the interests of The Rio Grande Western Railway Company, and was controlled, through ownership of its capital stock, from the date of its incorporation until April 2, 1910, the date of its dissolution, by employees of The Rio Grande Western Railway Company, by The Rio Grande Western Railway Company, itself, or by that company's successor, the carrier. On the other hand, the records do not indicate that this company, itself, ever controlled any other common-carrier corporation.

The railroad owned by the Carbon County Railway Company was operated through stock control by The Rio Grande Western Railway Company from 1899, the date construction was completed, to January 30, 1900, the date of sale to that company. The railroad owned on date of sale consisted of about 23.24 miles of single-track, standard-gage, steam railroad, all in Utah. It comprised two separate lines, one extending from Mounds to Sunnyside and the other from Scofield to Clear Creek.

Development of Fixed Physical Property

The mileage owned by this company on date of sale had been constructed for it by The Rio Grande Western Construction Company, an affiliated corporation, during 1899.

Utah Eastern Railway Company
Introductory

No accounting records of the Utah Eastern Railway Company were obtained. Therefore, nothing can be given from its accounts regarding its financial dealings, corporate operations, and investments. The information given in this report has been taken from the records of The Rio Grande Western Railway Company, The Rio Grande Western Construction Company, and the carrier. The Utah Eastern Railway Company was incorporated in the interests of The Rio Grande Western Railway Company, and was controlled, through ownership of its entire capital stock, from the date of its incorporation until April 2, 1910, the date of its dissolution, by The Rio Grande Western Railway Company or that company's successor, the carrier. On the other hand, the records do not indicate that this company, itself, ever controlled any other common-carrier corporation. The railroad owned by the Utah Eastern Railway Company was operated through stock control by The Rio Grande Western Railway Company from September 22, 1898, the date construction was completed, to January 31, 1900, the date of sale to that company. The railroad owned on date of sale consisted of about 15 miles of single-track, standard-gage, steam railroad, all in Utah, extending from Mile Post 11 on the line of The Rio Grande Western Railway Company to Heber.

Development of Fixed Physical Property

The mileage owned by this company on date of sale had been constructed for it by The Rio Grande Western Construction Company, and affiliated corporation, which completed the road on September 22, 1898.

San Pete Valley Railway Company
Introductory

No accounting records of the San Pete Valley Railway Company were obtained for the period prior to September 1, 1907, on which date control passed to The Rio Grande Western Railway Company and new books of account were opened to record assets and liabilities then existing. Therefore, only partial information can be given from the accounts regarding its financial dealings, corporate operations, or investments. Certain information shown herein was obtained from other sources as described hereinafter. This company was controlled on date of sale, August 1, 1908, by the carrier through ownership of its entire outstanding capital stock. On the other hand, the records reviewed do not indicate that this company, itself, then controlled any common-carrier corporation.

The report of the carrier on its corporate history states that the property of the San Pete Valley Railway Company was operated by its own organization from about 1882, the date of completion of the first section of its road, until the date of sale. The San Pete Valley Railway Company owned on the date of sale 49.60 miles of single-track, standard-gage, steam railroad, extending from Nephi to Morrison, with branches, wholly within the State of Utah.

Development of Fixed Physical Property

Of the owned mileage of the San Pete Valley Railway Company, 49.6 miles, it acquired 8.09 miles from the California Short Line Railway Company and 41.51 miles by construction. This company acquired 62.1 miles of road of which 12.5 miles were abandoned during the years 1884 and 1902. It is not known whether the construction work was performed by the forces of the San Pete Valley Railway Company or by contract. Further details with respect to the construction of this property are given in the chapter on development of fixed physical property in the report on the carrier.

California Short Line Railway Company
No accounting records of the California Short Line Railway Company were obtained. Therefore, no information can be given from the accounts regarding its financial dealings or investments. Certain information shown below was obtained from other corporate records of the company. The records reviewed do not indicate whether the California Short Line Railway Company was controlled by any individual or corporation on August 31, 1889, the date of sale, nor, on the other hand, whether it then controlled any common-carrier corporation.

The records reviewed indicate that to date of sale the California Short Line Railway Company had completed construction of 8.09 miles of narrow-gage road extending from Chester, Utah, to Draper Junction, Utah, and had performed some grading on right of way between Draper Junction and Nephi, Utah.

Sevier Railway Company
Introductory

The Sevier Railway Company discontinued its accounting records about June 30, 1900. Certain information for the period from July 1, 1900, to August 1, 1908, date of sale to the carrier, has been taken from records of affiliated companies, as mentioned hereinafter. The company was dissolved April 2, 1910. It was controlled during its entire life, through ownership of its capital stock, by the Rio Grande Western Railway Company and that company's successor, the carrier. On the other hand, this company itself, did not control any other common-carrier corporation on date of sale.

Its property was operated under lease by The Rio Grande Western Railway Company and the Denver and Rio Grande Railroad Company (of 1886) from the date of construction to date of sale. The railroad owned on date of sale consisted of 70.88 miles of single-track, standard-gage, steam railroad, all in Utah, extending from Manti to Marysvale.

Development of Fixed Physical Property

The mileage owned on date of sale had been acquired by construction during the years 1891, 1896, and 1900. The road was constructed by the Rio Grande Western Construction Company, an affiliated company, accepting the last 8.92-mile section terminating at Marysvale, Utah, which was constructed either by this company's own forces or by forces of the Rio Grande Western Railway Company.

Tintic Range Railway Company
Introductory

The Tintic Range Railway Company discontinued its accounting records about June 30, 1900. Certain information for the period from July 1, 1900, to August 1, 1908, the date of sale to the carrier, has been taken from records of affiliated companies as mentioned hereinafter. The company was dissolved April 2, 1910. It was controlled during its entire life, through ownership of its capital stock by The Rio Grande Western Railway Company and that company's successor, the carrier. On the other hand, this company, itself, never controlled any other common-carrier corporation.

Its property was operated under lease by The Rio Grande Western Railway Company and The Denver and Rio Grande Railroad Company (of 1886) from the dates of construction to date of sale. The railroad owned on date of sale consisted of 43.7 miles of single-track, standard-gage, steam railroad, located in Utah and extending from Springville to Silver City.

Development of Fixed Physical Property

The mileage owned on date of sale had been acquired by construction during the years 1891 and 1893. It was constructed under contract by The Rio Grande Western Construction Company, an affiliated corporation.

The Rio Grande Gunnison Railway Company
No accounting records of The Rio Grande Gunnison Railway Company were obtained. Therefore, no information can be given from its accounts regarding its financial dealings, corporate operations, or investments. However, certain information shown below was obtained from the report of the carrier on its corporate history, from reports filed with the commission, and from other corporate records. The records of The Rio Grande Gunnison Railway Company indicate that it was controlled on August 1, 1908, the date of sale, by the carrier through ownership of its entire outstanding capital stock, but the accounts of the latter do not record such stock ownership. On the other hand, the records reviewed do not indicate that this company, itself, then controlled any common-carrier corporation.

The property of this company was operated under lease by the Denver and Rio Grande Railroad Company (of 1886) and its successor, the carrier, from December 2, 1891, the date it was placed in operation, to the date of sale. The Rio Grande Gunnison Railway Company owned on date of sale 9.59 miles of single-track, standard-gage, steam railroad, extending from Wagon Wheel Gap to North Creede, wholly within the State of Colorado, all of which was acquired by construction. The records reviewed indicate that the grading was performed by Levy and Moore under contract. The records reviewed do not indicate whether the remaining construction work was performed by the forces of The Rio Grande Gunnison Railway Company or by contract. The records reviewed indicate that this company made an exchange of certain of its right of way with the Wason Toll Road Company. Further details with respect to the construction of this property are given in the chapter on development of fixed physical property in the report on the carrier.

The Rio Grande and Santa Fe Railroad Company
Introductory

The Rio Grande and Santa Fe Railroad Company acquired its property by deed dated July 2, 1895, from Charles W. Waterman, who had received conveyances from both The Santa Fe Southern Railway Company, which had held and operated the property from 1889 to June 26, 1895, and from the Texas, Santa Fe and Northern Railroad Company, which had been declared by court to be the real owner of the property. Further details with respect to the acquisition and holding of the property by the corporations mentioned are given in the reports on those companies. The Rio Grande and Santa Fe Railroad Company was controlled on the date of sale by the carrier through ownership of its entire capital stock. On the other hand, the records reviewed do not indicate that the company, itself, then controlled any common-carrier corporation.

The property of the company was operated by The Denver and Rio Grande Railroad Company (of 1886) from July 2, 1895, the date of purchase, to August 1, 1908, the date of sale. The railroad owned by the company on date of sale consisted of 33.97 miles of single-track, narrow-gage, steam railroad, extending from Espanola to Santa Fe, N. Mex.

Development of Fixed Physical Property

The entire 33.97 miles of road owned by The Rio Grande and Santa Fe Railroad Company on the date of sale was acquired by purchase under conditions described in the introductory chapter.

The Santa Fe Southern Railway Company
No accounting records of The Santa Fe Southern Railway Company were obtained. Therefore, no information can be given from its accounts regarding its financial dealings, corporate operations, or investments. However, certain data given below were obtained from court records and its articles of incorporation.

Although this company held the property constructed by the Texas, Santa Fe and Northern Railroad Company under deed dated February 7, 1889, and operated it from about that time to July 2, 1895, the deed of conveyance was held by decree of court to have been null and inoperative. A deed of trust executed by the Texas, Santa Fe and Northern Railroad Company was held by court order to have been a prior lien on the property over the deed of conveyance to the Santa Fe Southern Railway Company and after sale at foreclosure of the property under the deed of trust this company was directed to convey property to The Rio Grande and Santa Fe Railroad Company. The property was conveyed by deed dated June 26, 1895, to Charles W. Waterman, who, in turn, on July 2, 1895, conveyed it to The Rio Grande and Santa Fe Railroad Company.

The records reviewed do not indicate whether The Santa Fe Southern Railway Company was controlled by any individual or corporation on July 2, 1895, the date the property was conveyed to The Rio Grande and Santa Fe Railroad Company, nor, on the other hand, whether it then controlled and common-carrier corporation.

The property held by this company was operated by its own organization from January 24, 1889, to June 26, 1895. The railroad held by this company on the date it ceased operations under conditions mentioned above consisted of 33.97 miles of single-track, narrow-gage, steam railroad, extending from Espanola to Santa Fe, N. Mex.

Texas, Santa Fe and Northern Railroad Company
No accounting records of the Texas, Santa Fe and Northern Railroad Company were obtained. Therefore, no information can be given from its accounts regarding its financial dealings, corporate operations, or investments. However, certain data given below were obtained from the articles of incorporation, court records, corporate history, and files of the carrier.

The property of this company was conveyed by masters' deed of February 27, 1886, to George C. Preston in satisfaction of a mechanic's lien. Preston conveyed it to Calvin C. Brice on May 19, 1886. Brice conveyed it to Frank Daniels on February 27, 1889, and Daniels conveyed it to The Santa Fe Southern Railway Company on the same date. The trustee of the mortgage securing the bonds of this company brought suit for foreclosure of the mortgage whereupon the court decreed in March, 1895, that the deed of February 27, 1886, to Preston and the subsequent transfers of the property were void as against the trustee. The property was ordered sold and it passed by deed of June 3, 1895, to Charles W. Waterman, who conveyed the property to The Rio Grande and Santa Fe Railroad Company by deed of July 2, 1895.

The records reviewed do not indicate whether the Texas, Santa Fe and Northern Railroad Company was controlled by any individual or corporation on date of sale, nor, on the other hand, whether it then controlled any common-carrier corporation.

The report of the carrier on its corporate history states that the property of this company was operated by its own organization from the time of its construction in 1886 to January 24, 1889. The railroad owned by this company on the date it ceased operations consisted of 33.97 miles of single-track, narrow-gage, steam railroad, extending from Espanola to Santa Fe, N. Mex. The entire 33.97 miles of railroad owned by the Texas, Santa Fe and Northern Railroad Company were all acquired by construction. The records reviewed do not indicate whether the construction work was performed by the forces of the Texas, Santa Fe and Northern Railroad Company or by contract. Further details with respect to the construction of this property are given in the chapter on development of fixed physical property in the report on the carrier.

Utah Central Railroad Company
Introductory

Although the Utah Central Railroad Company did not acquire title to its original property until January 3, 1898, and conveyed its property to its successor by deed dated August 1, 1908, its accounts record the results of corporate operations as from January 1, 1898, to June 30, 1908, during which period the property is stated to have been operated under lease. This company was controlled from the date of its organization to August 1, 1908, the date of sale, through ownership of its entire outstanding capital stock, by The Rio Grande Western Railway Company and that company's successor, the carrier. On the other hand, the records reviewed do not indicate that this company, itself, then controlled any common-carrier corporation.

The property of this company is stated to have been operated under lease by The Rio Grande Western Railway Company from January 1, 1898, to June 30, 1902, and by The Denver and Rio Grande Railroad Company (of 1886) from July 1, 1902, to June 30, 1908. The railroad owned by the Utah Central Railroad Company on date of sale amounted to 30.69 miles, wholly within the State of Utah. It consisted of a single-track, standard-gage, steam railroad, extending from Mill Creek to Park City and from Mill Creek to Wilford.

Development of Fixed Physical Property

Of the 30.69 miles of road owned by the Utah Central Railroad Company on date of sale, it had acquired by purchase 27.86 miles from the Salt Lake and Eastern Railway Company, 10.37 miles from the Salt Lake and Fort Douglas Railway Company, and 1.50 miles by construction. Of the mileage thus acquired, 6.73 miles were abandoned in 1898 and 2.31 miles in 1900. The records reviewed do not indicate whether the construction work was performed by the forces of the Utah Central Railroad Company or by contract. Further details with respect to the construction of this property are given in the chapter on development of fixed physical property in the report on the carrier.

Salt Lake and Eastern Railway Company
No accounting records of the Salt Lake and Eastern Railway Company were obtained. Therefore, no information can be given from the accounts regarding its financial dealings, corporate operations, or investments. Certain information shown below was obtained from other corporate records of the company. The records reviewed do not indicate whether the Salt Lake and Eastern Railway Company was controlled by any individual or corporation on April 8, 1890, the date its rights and franchises east of Park City, Utah, were acquired by the Utah Central Railway Company. Neither do the records reviewed indicate whether any individual or corporation controlled the company on December 24, 1897, the date its constructed property, rights, and franchises west of Park City, Utah, were sold under foreclosure sale to Henry Graff and Anthony J. Dittmar, who later conveyed it to the Utah Central Railroad Company. On the other hand, the records reviewed do not indicate whether the Salt Lake and Eastern Railway Company, itself, ever controlled any other common-carrier corporation.

The report of the carrier on its corporate history states that the property of the Salt Lake and Eastern Railway Company was operated by its own organization from July 1, 1889, when construction of its road was completed, until April 8, 1890. The records reviewed do not indicate by whom or the conditions under which the property was operated from April 8, 1890, to date of sale. The Salt Lake and Eastern Railway Company owned on date of sale 27.86 miles of single-track, narrow-gage, steam railroad, extending from Mill Creek to Park City, wholly within the State of Utah. This property was all acquired by construction during the year 1889. The records reviewed do not indicate whether the construction work was performed by the forces of the company or by contract.

Utah Central Railway Company
No accounting records of the Utah Central Railway Company were obtained. Therefore, no information can be given from the accounts regarding its financial dealings, corporate operations, or investments. Certain information shown below was obtained from other corporate records of the company. The records reviewed do not indicate whether the Utah Central Railway Company was controlled by any individual or corporation on December 24, 1897, the date of foreclosure sale to Henry Graff and Anthony J. Dittmar, who later conveyed it to the Utah Central Railroad Company, nor, on the other hand, whether the Utah Central Railway Company, itself, on the date of sale, controlled any common-carrier corporation.

The report of the carrier on its corporate history states that the property of the Utah Central Railway Company was operated by its own organization from April 8, 1890, the date of incorporation, until May 8, 1897. The records reviewed do not indicate by whom or the conditions under which the property was operated from May 8, 1897, to date of sale. The Utah Central Railway Company constructed during the year 1890, 1.97 miles of single-track, narrow-gage, steam railroad, extending from a connection with the Salt Lake and Fort Douglas Railway Company, to Sugar House, wholly within the State of Utah. During the year 1897, 1.87 miles of road had been abandoned, leaving 0.10 mile of road owned on the date of sale, classified as yard tracks and sidings. The successor company did not record the acquisition of any main-line mileage. It is not known whether the construction work was performed by the forces of the Utah Central Railway Company or by contract.

Utah Western Railway Company
No accounting records of the Utah Western Railway Company were obtained. Therefore, no information can be given from the accounts regarding its financial dealings or investments. Certain information shown below was obtained from other corporate records of the company. The records reviewed do not indicate whether the Utah Western Railway Company was controlled by any individual or corporation on April 8, 1890, the date of sale, nor, on the other hand, whether it then controlled any common-carrier corporation. The records reviewed do not indicate that this company owned any common-carrier property on date of consolidation.

Salt Lake and Fort Douglas Railway Company
No accounting records of the Salt Lake and Fort Douglas Railway Company were obtained. Therefore, no information can be given from the accounts regarding its financial dealings, corporate operations, or investments. Certain information shown below was obtained from other corporate records of the company. The records reviewed do not indicate whether the Salt Lake and Fort Douglas Railway Company was controlled by any individual or corporation on December 24, 1897, the date of foreclosure sale to Henry Graff and Anthony J. Dittmar, who later conveyed it to the Utah Central Railroad Company, nor, on the other hand, whether the Salt Lake and Fort Douglas Railway Company, itself, then controlled any common-carrier corporation.

The report of the carrier on its corporate history states that the property of the Salt Lake and Fort Douglas Railway Company was operated by its own organization from 1887, when construction of its road was completed, to May 8, 1897, and by receivers from May 8, 1897, to date of sale. The Salt Lake and Fort Douglas Railway Company owned on the date of sale 10.37 miles of single-track, narrow-gage, steam railroad, located in Salt Lake City and extending therefrom to Red Butte, and from Military Post to Emigration, wholly within the State of Utah. This property was all acquired by construction during the year 1887. It is not known whether the construction work was performed by the forces of the Salt Lake and Fort Douglas Railway Company or by contract.

Salt Lake and Fort Douglas Railway Company (of 1883)
No accounting records of the Salt Lake and Fort Douglas Railway Company (of 1883) were obtained. Therefore, no information can be given from the accounts regarding its financial dealings, corporate operations, or investments. Certain information shown below was obtained from other corporate records of the company. This company was incorporated for the purpose of constructing a railroad between certain points in the State of Utah. Articles of incorporation of its successor, the Salt Lake and Fort Douglas Railway Company, indicate that the latter was incorporated partly for the purpose of acquiring the property, rights, and franchises of the Salt Lake and Fort Douglas Railway Company (of 1883). The records reviewed do not indicate that any road was built by the Salt Lake and Fort Douglas Railway Company (of 1883), nor do they indicate how title to the rights and franchises passed to its successor.

The Rio Grande, Pagosa and Northern Railroad Company
No accounting records of The Rio Grande, Pagosa and Northern Railroad Company were obtained. Therefore, no information can be given from its accounts regarding its financial dealings, corporate operations, or investments. However, certain data given below were obtained from the report of the carrier upon its corporate history and records. The Rio Grande, Pagosa and Northern Railroad Company was controlled on August 1, 1908, the date of sale, by the carrier through ownership of its entire outstanding capital stock. On the other hand, the records reviewed do not indicate that this company, itself, then controlled any common-carrier corporation.

The corporate history states that the property owned by this company was operated by its own organization from November 17, 1900, the date it was placed in operation to the date of sale, although the records reviewed indicate that the road was operated under stock ownership by The Denver and Rio Grande Railroad Company (of 1886). The Rio Grande, Pagosa and Northern Railroad Company owned on date of sale about 30.85 miles of standard-gage, steam railroad, extending from Pagosa Junction to Pagosa Springs, Colo. The railroad owned on date of sale was all acquired by construction. The construction work was performed by Sullenberger and Newton, lumber dealers, under supervision of forces of The Denver and Rio Grande Railroad Company (of 1886). Details with respect to the construction of this property are given in the chapter on development of fixed physical property of the carrier.

The property was constructed under an agreement, dated April 28, 1899, between The Denver and Rio Grande Railroad Company (of 1886) and Sullenberger and Newton. The agreement provided among other things, that the lumber dealers were to furnish the labor and the material except rails and certain track fastenings, and that they were to be reimbursed for such outlays at the rate of $25,000 monthly out of the gross revenues of the property. Under this agreement, The Denver and Rio Grande Railroad Company (of 1886) paid the Pagosa Lumber Company, assignee of Sullenberger and Newton, $131,025.15. This amount, together with $41,251.46 representing the value of rails and fastenings, making a total of $172,276.61, was carried by the carrier as its investment in the stock of this company.

The Rio Grande Railroad Company
Introductory

The Rio Grande Railroad Company did not maintain complete accounting records. Therefore, the information given hereinbelow in connection with its financial dealings and investments has been taken from the accounting records of The Denver and Rio Grande Railroad Company (of 1886). The Rio Grande Railroad Company was controlled during its entire life, through ownership of its capital stock, by The Denver and Rio Grande Railroad Company (of 1886) and that company's successor, the carrier. On the other hand, the records reviewed do not indicate that this company, itself, ever controlled any common-carrier corporation.

Its property was always operated under lease by The Denver and Rio Grande Railroad Company (of 1886). The railroad lines owned by this company consisted of 42.47 miles of single-track, narrow-gage, steam railroad, extending from Delta to Somerset, all in Colorado, which mileage was sold June 23, 1903, to The Denver and Rio Grande Railroad Company (of 1886), and 34.92 miles of single-track, standard-gage, steam railroad, comprising lines from Texas Creek to Westcliffe and from Maitland Junction to Big Four, all in Colorado, which mileage was sold August 1, 1908, to the carrier.

Development of Fixed Physical Property

The railroad owned by this company on the respective dates of sale was constructed for it by The Denver and Rio Grande Railroad Company (of 1886). Further details are given in the chapter on development of fixed physical property in the report on the carrier.

The Rio Grande Sangre de Cristo Railroad Company
No accounting records of The Rio Grande Sangre de Cristo Railroad Company were obtained. Therefore, no information can be given from its accounts regarding its financial dealings, corporate operations, or investments. However, certain data given below were obtained from the articles of incorporation and from the accounting records of The Denver and Rio Grande Railroad Company (of 1886). The Rio Grande Sangre de Cristo Railroad Company was controlled by the carrier on August 1, 1908, the date of sale, through ownership of capital stock. On the other hand, the records reviewed do not indicate that the company, itself, then controlled any common-carrier corporation.

The report of the carrier on its corporate history states that the property of The Rio Grande Sangre de Cristo Railroad Company was operated under lease by The Denver and Rio Grande Railroad Company (of 1886) from August 22, 1901, the date construction was completed, until the date of sale. The railroad owned on the date of sale consisted of 16.96 miles of narrow-gage, steam railroad, extending from Moffat to Cottonwood, Colo. The road was acquired by construction, as explained below:

The Denver and Rio Grande Railroad Company (of 1886) contracted to secure the construction of the road, and to accept in payment $299,300 par value of The Rio Grande Sangre de Cristo Railroad Company's capital stock. The Denver and Rio Grande Railroad Company (of 1886) entered into a contract with The San Luis Valley Land and Mining Company, the latter company agreeing to provide the necessary right of way at its own expense, and the former company agreeing to construct the road, partly at the expense of The San Luis Valley Land and Mining Company and partly at the expense of The Rio Grande Sangre de Cristo Railroad Company. Further, The Denver and Rio Grande Railroad Company (of 1886) agreed to operate the property, and to reimburse The San Luis Valley Land and Mining Company for all right of way and construction expenditures borne by the latter, such reimbursement to be based on 30 per cent of the gross earnings from operating the line. The total cost of building the road was stated to have been $142,986.95, of which $112,025.68 was the portion borne by The San Luis Valley Land and Mining Company, and the remaining $30,961.27 was to be borne by The Rio Grande Sangre de Cristo Railroad Company.

Castle Valley Railway Company
Introductory

The Castle Valley Railway Company did not maintain accounting records. Certain information given below has been taken from its corporate records and from the accounting records of affiliated companies, as mentioned hereinafter. It was controlled, during its entire life, through ownership of its capital stock, by The Rio Grande Western Railway Company and that company's successor, the carrier. On the other hand, this company, itself, never controlled any other common-carrier corporation.

Although the property of this company was taken over for operation by The Denver and Rio Grande Railroad Company (of 1886), it was not actually operated, owing to the washout of the major portion of its roadbed. The property owned on August 1, 1908, date of sale to the carrier, consisted of 20 miles of single-track, standard-gauge, steam railroad, located in Utah, and extending from Salina to Nioche.

Development of Fixed Physical Property

The railroad owned on date of sale had been acquired partly by purchase and partly by construction. Franchise rights for the construction of a road to extend east from Salina, Utah, together with a partly graded road, were purchased July 30, 1901, from the Sevier Railway Company. The construction of the road was completed during 1902 and 1903, principally by forces of The Rio Grande Western Railway Company and The Denver and Rio Grande Railroad Company (of 1886).

Copper Belt Railroad Company
Introductory

The Copper Belt Railroad Company was controlled on August 1, 1908, the date of sale, by the carrier through ownership of its entire outstanding capital stock. On the other hand, the records reviewed do not indicate that this company, itself, then controlled any common-carrier corporation.

The records reviewed indicate that the property of this company was operated through stock ownership by Wm. Bayley from November 17, 1900, to December 31, 1904, and by The Denver and Rio Grande Railroad Company (of 1886) from January 1, 1905, to date of sale, but the accounts for the results of corporate operations are recorded in books of the Copper Belt Railroad Company from November 17, 1900, to June 30, 1908, just as though the operations had been conducted by the company's own organization. The carrier has stated in the report upon its corporate history that the property of the Copper Belt Railroad Company was operated by its own organization from 1901, the date of completion of construction of the first section of the road, to the date of sale.

The railroad owned by the Copper Belt Railroad Company on date of sale amounted to 4.27 miles, wholly within the State of Utah. It consisted of three branches of single-track, standard-gage, steam railroad, extending from a connection with the road of The Rio Grande Western Railway Company to Commercial Mine; from a connection with that road to the Boston Consolidated Mine, and from a connection with the road of the Copper Belt Railroad Company to Yampa Smelter.

Development of Fixed Physical Property

The entire 4.27 miles of road owned by the Copper Belt Railroad Company on date of sale was acquired by it through construction during the period 1901 to 1903. The construction work was performed under contract by the Utah Construction Company, an independent organization. Further details with respect to the construction of this property are given in the chapter on development of fixed physical property in the report on the carrier.

The Rio Grande, Pueblo and Southern Railroad Company
No accounting records of The Rio Grande, Pueblo and Southern Railroad Company were obtained. Therefore, no information can be given from its accounts regarding its financial dealings, corporate operations, or investments. However, certain data given below were obtained from its minute book and articles of incorporation. It was controlled on August 1, 1908, the date of sale, by the carrier through ownership of the entire capital stock. On the other hand, the records reviewed do not indicate that the company, itself, then controlled any common-carrier corporation.

The property owned by this company was operated by The Denver and Rio Grande Railroad Company (of 1886) from August 1902, when it was placed in operation, to August 1, 1908, the date of sale. The Rio Grande, Pueblo and Southern Railroad Company owned on date of sale about 3.36 miles of standard-gage, steam railroad, extending from Zinc Junction to Blende, Colo., all of which was constructed for the company by the forces of The Denver and Rio Grande Railroad Company (of 1886).