Wikipedia:WikiProject Trains/ICC valuations/Georgia Railroad and Banking Company

Interstate Commerce Commission, Valuation Reports, Volume 125

Location and General Description of Property
The railroad of The Georgia Rail Road and Banking Company, herein called the Georgia, is a single-track standard-gauge steam railroad, located in the north-central part of Georgia. Its main line extends from Augusta to Atlanta, with branches between Union Point and Athens, Barnett and Washington, and Camak and Mogul. The property of the Georgia is operated by the present lessees, through the carrier. Following is a summary of the mileage owned and leased to other carriers:

Corporate History
The Georgia was incorporated by a special act of the Legislature of Georgia, approved December 21, 1833, as the Georgia Rail Road Company. The name was changed to its present designation by an amending act approved December 18, 1835. The organization was completed on March 10, 1834. The Georgia operated its property from May, 1837, until April 1, 1881, since which date its railroad property has been operated by the present lessees. The Georgia's charter vested it with banking powers and privileges. It operated a banking department from March 10, 1834, until January 1, 1893, on which date its banking business was transferred to the Georgia Railroad Bank, a subsidiary corporation created for that special purpose. The principal office of the Georgia is located at Augusta. The detailed facts as to the development of the fixed physical property are given in Appendix 2.

Development of Fixed Physical Property
The property owned by the Georgia on date of valuation was acquired as follows:

Acquired by Construction
The Georgia constructed about 214 miles of its line of railway. The construction work was performed either by the Georgia's own forces or by contractors working under its supervision. The first surveys were commenced in November, 1834, the first actual construction work was begun in June, 1835, and the first mileage, from Augusta to a point about 11 miles west of that place, was opened for operation in May, 1837. The line was extended to Atlanta in sections, the last being completed in September, 1845. The branch line between Camak and Warrenton was opened for operation in January, 1838, and that between Union Point and Athens in December, 1841.

Acquired by Merger
The Georgia was authorized, by a special act of the Georgia Legislature, approved January 21, 1852, to merge the property of the Washington Rail or Plank Road Company, extending from Barnett to Washington, approximately 17 miles. On March 2, 1880, the Georgia purchased the railway of the Macon & Augusta Railroad Company at foreclosure sale. This line extended from Warrenton to Macon, about 74 miles. By this purchase, the branch line previously constructed from Camak to Warrenton was extended to Macon. In February, 1881, a flood destroyed a railroad bridge and washed away part of the track between M. & A. Junction (near Mogul), and Macon, the terminus. Since that time the line between those two points, about 4 miles, has not been operated, and it has been dismantled. However, some yard tracks in Macon were still owned on date of valuation.

Leased Railway Property
By a lease agreement dated May 7, 1881, but effective 99 years from April 1, 1881, the Georgia leased to Wm. M. Wadley all of its rights and property, including the right to collect the income on certain investment securities and the power of attorney to vote certain investment stocks, but excluding the banking house, privileges and business, the cash assets, and also the lands, houses, and tenements, except an elevator and appurtenances in Augusta, not necessary or used for railroad purposes.

The lessee assigned equal interests in this lease to Louisville and Nashville Railroad Company and the Central Railroad & Banking Company of Georgia, on May 17, 1881, and June 1, 1881, respectively. The one-half interest of the Central Railroad & Banking Company of Georgia in the lease was acquired February 2, 1898, by Louisville and Nashville Railroad Company, which on August 9, 1899, assigned a one-half interest therein to Atlantic Coast Line Railroad Company. The Louisville and Nashville Railroad Company and Atlantic Coast Line Railroad Company each retained their one-half interest in the lease on date of valuation. The operation of this property has been conducted by the carrier during the entire expired period of the lease.

The lease agreements provide for an annual rental of $600,000, payable quarterly. The rent accrued by the Georgia for the year ended on date of valuation was only $450,000. The lessee is permitted to make necessary improvements to the property, for which the lessor must pay at the termination of the lease period at their then fair value.

A small portion of the Georgia's property is operated exclusively by carriers other than the carrier, either through lease from the Georgia or sublease from the lessees. However, the carrier collects the rental for the use of such property. The terms of such leases, and the amount of rental accrued, follow:

Macon & Augusta Railroad Company, name changed from Milledgeville Railway Company
The Milledgeville Railway Company was chartered by special acts of the Legislature of the State of Georgia, the original act being approved December 26, 1837, and a reviving act approved December 22, 1847. It was authorized to construct and operate a line of railway from Warrenton to Milledgeville, both in Georgia. By an act approved February 8, 1850, it was authorized to extend its line from the latter point to Macon. By a further act, approved February 23, 1866, the company's name was changed to Macon & Augusta Railroad Company.

The company was organized July 9, 1853. Its line, when completed in 1870 or 1871, extended from Warrenton (the terminus of one of the Georgia's branch lines) to Macon, approximately 74 miles. The road was operated by the company from the time it was completed until September 1, 1878. On the latter date, the property was taken over by the trustee of a mortgage, and it was operated by the Georgia under lease from the trustee until March 2, 1880. On that date it was sold at foreclosure sale to the Georgia for $50,000 cash, subject, however, to the outstanding indebtedness of the former owner. The Macon & Augusta Railroad Company went out of existence after its property was sold.

The above information is taken from the records of the Georgia. Since no accounting records of the Macon & Augusta Railroad Company are obtainable, no information can be given respecting its financial history, the cost of its property, or the results of operating its road.

Washington Rail or Plank Road Company
The Washington Rail or Plank Road Company was chartered by a special act of the Legislature of the State of Georgia, approved February 5, 1850. It was authorized to construct and operate a line of railway from Barnett to Washington, both in Georgia. By a special act, approved January 21, 1852, the Georgia Legislature authorized the Georgia to merge this company's property with that of its own by exchanging its stock, par for par, for the stock of the other company. The Washington Rail or Plank Road Company completed the construction of its line from Barnett, a point on the Georgia's main line, to Washington, approximately 17 miles, about August 1, 1853. The Georgia began operating the property on that date and shortly thereafter recorded the issuance of $156,000 par value of its stock to the stockholders of the other company, thereby completing the merger.

No records of the Washington Rail or Plank Road Company are obtainable. The information given above is that developed from the records of the Georgia.