Wikipedia:WikiProject Trains/ICC valuations/Grand Rapids and Indiana Railway

Interstate Commerce Commission, Volume 23, Valuation Reports

Location and General Description of Properties
The railroad of Grand Rapids & Indiana Railway Company, herein called the Grand Rapids & Indiana, is a single-track, standard-gauge, steam railroad, situated in Michigan and Indiana. The owned mileage consists of a main line extending from Fort Wayne, Ind., to Mackinaw City, Mich., and from Plaster Junction, Mich., to Comstock Park, Mich., 366.515 miles, and of numerous branch lines, aggregating 110.146 miles, all in Michigan. These branches extend from Muskegon Junction to Muskegon, Missaukee Junction to Michelson, Lake City Junction to Lake City, Falmouth Junction to Falmouth, Jennings Junction to Jennings, Walton Junction to Traverse City, Lake Junction to Walloon Lake, and from Kegomic to Harbor Springs.

[...]

The Grand Rapids & Indiana wholly owns and uses 731.874 miles and jointly owns and uses 9.929 miles of all tracks, and uses but does not own 111.451 miles of all tracks, which are classified in the trackage table in Appendix 1.

Entrance into the cities of Fort Wayne and Richmond, Ind., is by means of trackage rights over the tracks of other carriers.

Economic Conditions Relating to Traffic
The lands adjacent to this railroad from Grand Rapids, Mich., south to Richmond, Ind., are all under cultivation and are very productive. North of Grand Rapids the soil is less fertile and proportionately less developed. The principal farm products are grain, celery, potatoes, hay, garden truck, dairy products, and livestock. Manufacturing is extensive and varied. The chief manufactures are agricultural implements, automobiles, railroad supplies, hosiery, furniture, various mill products, household utensils, and plaster. Canning is also an important business.

Physical Characteristics of Road
From data submitted by the Grand Rapids & Indiana it appears that the maximum grade on northbound traffic varies from 1 per cent to 2.47 per cent, and on southbound traffic from 1.02 per cent to 2.03 per cent. The ruling grade likewise varies from 0.30 per cent to 1.42 per cent on northbound traffic and from 0.85 per cent to 1.41 per cent on southbound traffic. The maximum curvature varies from 3° to 10°.

The grading, for a road of this character, is very light, and is almost entirely common excavation.

Ties vary in number from 2,950 to 3,200 per mile. About 27 per cent are treated. On the main line the rail is principally 70, 85, and 100 pound new rail; on branch lines the rail is principally 60-pound new or relay rail.

Introductory
The Grand Rapids & Indiana is a corporation of the States of Michigan and Indiana, having its principal office at Grand Rapids, Mich. The Grand Rapids & Indiana is controlled by the Pennsylvania Company through ownership of a majority of its capital stock. The records do not indicate that the Grand Rapids & Indiana controls any other carrier corporation. The first entries recorded in the accounting records that are obtainable which relate to the Grand Rapids & Indiana's financial transactions or property investments were recorded on November 1, 1896. The first entries relating to the operation of the property were recorded on August 1, 1896, the date the Grand Rapids & Indiana took possession and began the operation of its property, as explained in the chapter following. The Grand Rapids & Indiana continued to operate its property from this date to date of valuation.

Corporate History
The Grand Rapids & Indiana was incorporated under the general laws of Michigan and Indiana as a reorganization of the Grand Rapids and Indiana Railroad Company (No. 4). Articles of incorporation, dated July 7, 1896, were filed with the secretaries of State of Michigan and Indiana on July 11 and July 13, 1896, respectively. The property of the reorganized company, which consisted of a railroad extending from Fort Wayne, Ind., to Mackinaw City, Mich., with numerous branch lines, aggregating about 427.32 miles of road, was sold at foreclosure on June 10, 1896, and conveyed by deed of John S. Lawrence, master in chancery, dated July 2, 1896, to John C. Sims, who organized the Grand Rapids & Indiana. On July 8, 1896, Sims submitted to the board of directors of the Grand Rapids & Indiana, which appears to have been then in process of organization, a plan of purchase of the property which he had acquired. Under this plan certain securities of the Grand Rapids & Indiana were to be issued to Sims to be used in liquidating certain liabilities of the Grand Rapids and Indiana Railroad Company (No. 4) and in settlement of certain claims against that company. This plan was approved and the property conveyed by Sims to the Grand Rapids & Indiana by deed dated July 25, 1896. Sims continued to operate the property as the Grand Rapids and Indiana Railroad Company (No. 4) until July 31, 1896.

On May 1, 1917, the Grand Rapids & Indiana acquired by direct purchase the properties of the Muskegon, Grand Rapids and Indiana Rail Road Company and the Traverse City Rail Road Company.

The following chart shows the names of the corporations comprised in the corporate history of the Grand Rapids & Indiana, 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.

The Grand Rapids & Indiana also acquired from the Widdicomb Furniture Company, by deed dated March 30, 1898, 3.42 miles of railroad known as the Widdicomb extension of the Herrick branch.

Development of Fixed Physical Property
The railroad owned by the Grand Rapids & Indiana on date of valuation was acquired for the most part by purchase. In the following table are shown the years in which and the companies by which the several portions of the property were constructed and the manner of their acquisition by the Grand Rapids & Indiana. No property was constructed by The Grand Rapids and Fort Wayne Railroad Company and The Grand Rapids and Southern Railroad Company, and three other companies did not complete the construction of their properties, as indicated hereinafter.


 * Acquired by purchase, July 25, 1896, representing the property of Grand Rapids and Indiana Railroad Company (No. 4), constructed by—
 * Grand Rapids and Indiana Railroad Company (No. 4)—
 * Osceolo branch, 1885-1892. 9.78
 * Plaster Mill extension, 1890. 3.93
 * Missaukee branch, 1890-1894. 8.64
 * Manistee branch, 1891, Haaks Spur. 4.09
 * Bear Lake branch, 1892. 1.07
 * 27.51
 * Grand Rapids and Indiana Railroad Company (No. 3) partly constructed by The Grand Rapids and Indiana Railroad Company (No. 2), Grand Rapids and Mackinaw Railroad Company, and The Grand Rapids and Indiana Railroad Company (No. 1)—
 * Main line—
 * Grand Rapids to Cedar Springs, Mich., 1867. 21.1
 * Cedar Springs to Morley, Mich., 1869. 19.3
 * Fort Wayne, Ind., to Sturgis, Mich., 1870. 55.8
 * Morley to Paris, Mich., 1870. 21.1
 * Sturgis to Kalamazoo, Mich., 1870. 36.3
 * Kalamazoo to Grand Rapids, Mich., 1870. 48.5
 * Paris to Cadillac, Mich., 1871. 36.3
 * Cadillac to Fife Lake, Mich., 1872. 25.5
 * Fife Lake to Petoskey, Mich., 1873. 67.4
 * Petoskey to Bay View, Mich., 1876. 1.1
 * Total. 332.4
 * Branch lines—
 * Manistee branch, 1880-81. 14.51
 * Missaukee branch, 1880. 7.64
 * Long Lake branch, 1881. 0.77
 * Deer Lake branch, 1883. 6.96
 * Total. 29.88
 * 362.28
 * Grand Rapids, Indiana and Mackinaw Railroad Company, Bay View to Mackinaw City, Mich., 1882. 34.11
 * Bay View, Little Traverse and Mackinaw Railroad Company, Kegomic to Harbor Springs, Mich., 1882. 5.76
 * D. A. Blodgett and Company, Herrick branch (unincorporated). 5.39
 * Total. 435.05
 * Less branch lines abandoned by The Grand Rapids and Indiana Railroad Company (No. 4), 1889-1894. 7.73
 * Total conveyed to the Grand Rapids & Indiana. 427.32
 * Less branch lines abandoned, 29.03 miles, or reclassified, 0.13 mile, by the Grand Rapids & Indiana, 1896-1902. 29.16
 * Total. 398.16
 * Acquired by direct purchase, May 1, 1917, from The Muskegon, Grand Rapids and Indiana Rail Road Company, Muskegon Junction to Muskegon, Mich., 1886. 36.85
 * Acquired by direct purchase, May 1, 1917, from Traverse City Rail Road Company, Walton Junction to Traverse City, Mich., 1872. 25.86
 * Acquired by direct purchase, Mar. 30, 1898, from Widdicomb Furniture Company, Widdicomb extension of Herrick branch (unincorporated). 3.42
 * Total acquired by direct purchase. 66.13
 * Less mileage abandoned by the Grand Rapids & Indiana, 1912. 0.68
 * Total. 65.45
 * Acquired by construction:
 * Widdicomb extension, 1900. 3.17
 * Harbor Springs extension, 1901. 0.53
 * Bear River branch, 1905. 1.43
 * Missaukee branch extensions, 1906-1908. 13.57
 * Veneer spur extension, 1907. 2.97
 * Total. 21.67
 * Less mileage abandoned, 3.17, and reclassified, 0.37 mile 3.54 Total. 18.13
 * Total recorded mileage. 481.74
 * Difference between recorded mileage and mileage inventoried, representing tracks classified by the Grand Rapids & Indiana as main tracks, inventoried as sidings. 5.079
 * Total mileage owned on date of valuation. 476.661

Included in the 29.03 miles of road shown as abandoned by the Grand Rapids & Indiana are 4.09 miles of railroad, known as the Luther branch, which the Grand Rapids & Indiana charged, on the date of its acquisition, to miscellaneous physical property account. It has not been determined from the records that are obtainable whether or not this branch was ever used by the Grand Rapids & Indiana as part of its main-track mileage. This branch was abandoned some time during the period 1896 to 1900. Further information as to the manner of construction of the Grand Rapids & Indiana's property is given in the reports on the respective predecessor companies.

Leased Railway Property
The Grand Rapids & Indiana solely operates the property of the Cincinnati, Richmond and Fort Wayne under the terms of a lease and agreement dated June 1, 1871, and the terms of a notice dated August 1, 1896. The property of this company was leased on June 1, 1871, to the Grand Rapids and Indiana (No. 3) for a period of 99 years. The lease stipulated that as rental for the property the lessee would pay the net earnings from the operation thereof, and would also pay one-third of any deficiency in net earnings, to meet the interest on the outstanding first-mortgage, 7 per cent guaranteed bonds of the lessor. Payment of the remaining two-thirds of the interest was guaranteed by The Cincinnati, Hamilton and Dayton Railway Company and the Pennsylvania Company, which also were parties to the lease.

At the time the Grand Rapids & Indiana succeeded to the property of the Grand Rapids and Indiana (No. 4), on August 1, 1896, it gave notice that it would not assume any of the obligations incurred by that company, as successor to the Grand Rapids and Indiana (No. 3), under the terms of the lease and agreement of June 1, 1871, but that it would temporarily operate the property, account for the net earnings and apply the same toward the payment of the interest on the bonds of the Cincinnati, Richmond and Fort Wayne.

The accounting records of the Grand Rapids & Indiana indicate, however, that it has operated the property of the Cincinnati, Richmond and Fort Wayne from August 1, 1896, to date of valuation, in accordance with the terms of the lease and agreement of June 1, 1871, and that it pays one-third of the deficiency in net earnings, to meet the interest on the Cincinnati, Richmond and Fort Wayne's outstanding 7 per cent first-mortgage bonds, payment of the remaining two-thirds of the interest being guaranteed by the Pennsylvania Company and The Pittsburgh, Cincinnati, Chicago and St. Louis Railroad Company.

Grand Rapids and Indiana Railroad Company (No. 4)
Introductory

This company, a corporation, of the State3 of Indiana and Michigan, owned and operated on the date of its demise, June 9, 1896, about 427.32 miles of railroad. Its main line extended from Mackinaw City, Mich., to Fort Wayne, Ind., about 367 miles, and its numerous branch lines, aggregating about 60 miles, extended principally from the main stem of its railroad in Michigan to points in that State. It also solely operated about 157 miles of railroad of other carriers, and used under trackage agreements about 12 miles of tracks of other carriers, as more fully described in the portion of this report devoted to leased railway property.

The company operated its owned and leased lines from October 1, 1884, to June 10, 1896. On the latter date its property was sold at foreclosure to John C. Sims, who continued to operate the property under the name of the Grand Rapids and Indiana Railroad Company (No. 4 ) until July 31, 1896.

Development of Fixed Physical Property

Of the mileage owned by the company, 396.39 miles, less 7.73 miles abandoned in 1889-1894, were acquired in the consolidation of 1884, 5.76 miles by purchase at judicial sale, 5.39 miles by direct purchase, and 27.51 miles by construction. Details with respect to the construction of this property are given in the chapter on development of fixed physical property of the Grand Rapids & Indiana.

Leased Railway Property

On June 9, 1896, the company solely operated about 157 miles of railroad of other carriers, the operation of which was continued by John C. Sims until July 31, 1896, as explained hereinbefore. The mileage so used was as follows:

The company also solely operated from October 1, 1884, to December 31, 1887, without written agreement, about 6 miles of railroad of the Bay View, Little Traverse and Mackinaw Railroad Company. It also had trackage rights over about 12 miles of track of other carriers.

Grand Rapids and Indiana Railroad Company (No. 3)
Introductory

This company, a corporation of the States of Indiana and Michigan, owned and operated on Sept. 30, 1884, the date of demise, 362.28 miles of single-track, standard-gauge, steam railroad, in Indiana and Michigan. Its main line extended from Bay View, Mich., to Fort Wayne, Ind., 332.40 miles, and its numerous branch lines, aggregating 29.88 miles, extended principally from the main stem in Michigan to points in that State. In addition to its owned road the company solely operated about 151.41 miles of road of other companies, as explained more fully in that portion of this report devoted to leased railway property. From the date the first section of its railroad was placed in operation in December, 1867, to date of demise, the property of this company was operated as follows:


 * By own organization. December, 1867, to Jan. 19, 1869.
 * By Jesse L. Williams, receiver. Jan. 20, 1869, to July 26, 1870.
 * By Continental Improvement Company. July 27, 1870, to Nov. 30, 1873.
 * By own organization. Dec. 1, 1873, to Sept. 30, 1884.

No accounting records covering the period from June 16, 1866, to November 30, 1873, are obtainable. This period includes that in which the first section of the property of the company was first operated by its own organization, the period in which it was operated by Jesse L. Williams, receiver, and the period during which the major portion of its railroad was constructed and operated by the Continental Improvement Company. The accounting records that are obtainable, covering the periods from July 1, 1857, to June 15, 1866, and from December 1, 1873, to September 30, T884, are incomplete and fragmentary, as are also the accounting records of the Continental Improvement Company that are obtainable.

Development of Fixed Physical Property

The railroad owned and operated by the company, comprising about 362 miles of road, had been acquired by construction between 1867 and 1883. Some construction work had been done by predecessors. About 310 miles of this road was constructed by the Continental Improvement Company under contract dated May 1, 1869. Details with respect to the construction of this property are given in the chapter on development of fixed physical property of the Grand Rapids & Indiana.

Leased Railway Property

On the date of its demise the company solely operated about 151.41 miles of other companies, as follows:


 * Without written agreement: Mileage
 * Grand Rapids, Indiana and Mackinaw, Bay View to Mackinaw City, Mich. 34.11
 * Bay View, Little Traverse and Mackinaw, Bay View to Harbor Springs, Mich. 5.70
 * 39.81
 * Under lease or agreement:
 * Traverse City Rail Road, Walton Junction to Traverse City, Mich. 26.00
 * Cincinnati, Richmond and Fort Wayne, Richmond Junction to Adams, Ind. 85.60
 * 111.60
 * Total. 151.41

The company also solely operated, during the period from November 25, 1873, to December 31, 1882, under arrangement and lease, 12 miles of railroad of the Mansfield, Coldwater and Lake Michigan Railroad Company, from Allegan to Monteith, Mich.

Grand Rapids, Indiana and Mackinaw Railroad Company
Introductory

This company, a corporation of the State of Michigan, was controlled on the date of demise by the Grand Rapids and Indiana Railroad Company (No. 3) through ownership of the entire outstanding capital stock. It owned on October 1, 1884, the date of the consolidation of its property, about 34 miles of single-track, standard-gauge, steam railroad, extending from Bay View, Mich., northwardly to Mackinaw City, Mich. This property was operated by the Grand Rapids and Indiana (No. 3), without written agreement from July 3, 1882, the date it was opened for operation, to the date of demise.

Bay View, Little Traverse and Mackinaw Railroad Company
Introductory

This company, a corporation of Michigan, was controlled on the date of its demise by the Grand Rapids and Indiana Railroad Company (No. 4) through ownership of a majority of the outstanding capital stock.

On January 17, 1888, the date of the sale of its property, it owned about six miles of single-track, standard-gauge, steam railroad, extending from Harbor Springs to a connection with the Grand Rapids and Indiana (No. 4) at Kegomic, Mich. From the date it was placed in operation until December 31, 1887, the property of this company was operated by the Grand Rapids and Indiana (No. 4) and its predecessor, the Grand Rapids and Indiana (No. 3). The manner of operation from January 1 to January 17, 1888, the date of conveyance of the property, is not of record. The accounting records of the company do not reflect the results of operations during this period.

Development of Fixed Physical Property

The road owned by this company was constructed by the Grand Rapids and Indiana (No. 3) under agreement of June 24, 1881, and was opened for operation on February 1, 1882.

The Grand Rapids and Indiana Railroad Company (No. 2)
Introductory

This Company was a corporation of Indiana and Michigan. On June 30, 1857, the date of its demise, it owned no completed mileage. Its charter authorized the construction of a railroad from Hartford, Ind., northwardly to Grand Rapids, Mich., about 179 miles, of which about 14 miles, from Sturgis, Mich., northwardly, had been partially constructed.

The company, on February 25, 1857, formally accepted the terms of an act of the Michigan State legislature, approved February 14, 1857, which provided for transfer to it of certain land grant lands acquired by the State of Michigan through a Federal act approved June 3,1856, located along the route of a railroad which the company agreed to construct from Grand Rapids northwardly to a point on or near Little Traverse Bay, Mich., about 190 miles. The charter for construction of this road was subsequently acquired by the Rapids and Mackinaw Railroad Company.

The records of this company include, in addition to its own accounts, certain stock and stock subscription accounts of the Grand Rapids and Mackinaw Railroad Company, and the Grand Rapids and Fort Wayne Railroad Company, which were treated by the Grand Rapids and Indiana (No. 2) as though they were a part of its own accounts.

Development of Fixed Physical Property

As previously explained, the company, at its demise, owned no completed mileage. A contract was let during the year 1856 for the construction of about 14 miles of railroad, extending northwardly from Sturgis, Mich., but none of this road was completed or opened for operation prior to the demise of the company.

Grand Rapids and Mackinaw Railroad Company
This company was a corporation of Michigan. It performed some construction work, but did not complete or own any mileage. No accounting records of this company are obtainable. The articles of association authorized it to issue capital stock in the amount of $1,720,000. The accounts of the Grand Rapids and Indiana (No. 2), in whose interest this company was organized, record that the former received subscriptions to the Grand Rapids and Mackinaw's capital stock aggregating $215,695, and that $215,695 par value of this stock was issued, as detailed in the report on that company.

The Grand Rapids and Fort Wayne Railroad Company
This company was a corporation of Indiana. It constructed no railroad and owned no completed mileage. No accounting records of this company are obtainable. The articles of association authorized it to issue capital stock in the amount of $400,000. The accounts of the Grand Rapids and Indiana (No. 2) record that it received subscriptions to this company's capital stock aggregating $52,600, but no issuance of any of this capital stock was recorded.

The Grand Rapids and Southern Railroad Company
This company was a corporation of Michigan. It constructed no railroad and owned no completed mileage. No accounting records of this company are obtainable. The articles of association authorized the issuance of capital stock in the amount of $696,000. The accounts of the Grand Rapids and Indiana (No. 1) recorded that that company received subscriptions to the Grand Rapids and Southern's stock aggregating $87,200, but no issuance of any of this stock was recorded.

The Grand Rapids and Indiana Railroad Company (No. 1)
Introductory

This company was a corporation of Indiana. On the date of its demise, September 1, 1855, it owned no completed mileage, but some construction work had been done by it. The records of the company, in addition to its own accounts, include certain stock subscription accounts of The Grand Rapids and Southern Railroad Company, which were treated by The Grand Rapids and Indiana (No. 1) as though they were a part of its own accounts.

Development of Fixed Physical Property

As previously stated, the company, at its demise, owned no completed mileage. Its route from Hartford, Ind., to the Indiana-Michigan State line was surveyed and located during the year 1854. A contract was let during May, 1855, for clearing, grubbing and grading, under which some work was performed, but no portion of the railroad was completed or opened for operation.

The Muskegon, Grand Rapids and Indiana Rail Road Company
Introductory

This company, a corporation of Michigan, was controlled on the date of its demise by the Grand Rapids & Indiana through ownership of the entire outstanding capital stock. It owned on April 30, 1917, the date of the sale of its property, about 37 miles of single-track, standard-gauge, steam railroad, extending from a connection with the Grand Rapids & Indiana at Muskegon Junction to Muskegon, Mich. From the date it was placed in operation to the date of sale, the property of the Muskegon, Grand Rapids and Indiana was operated for it by the Grand Rapids & Indiana and its predecessor, the Grand Rapids and Indiana Railroad Company (No. 4).

Development of Fixed Physical Property

The road owned by the company was acquired by construction, commenced in January, 1886, and completed in December, 1886. In the construction of this road the great part of the work was performed by contractors who appear, from the records that are obtainable, not to have been affiliated with the company.

Traverse City Rail Road Company
Introductory

This company, a corporation of Michigan, was controlled on the date of its demise by the Grand Rapids & Indiana through ownership of a majority of the outstanding capital stock. The company owned on April 30, 1917, the date of the sale of its property, about 26 miles of single-track, standard-gauge, steam railroad, extending from Traverse City to Walton Junction, Mich. From the date it was placed in operation to the date of sale, the property of the company was operated for it by the Grand Rapids & Indiana and its predecessors.

Development of Fixed Physical Property

The road owned had been acquired by construction, commenced in January, 1872, and completed in December, 1872. In the construction of this road the Continental Improvement Company was employed as contractor. The contractor was affiliated with the railroad company in the respect that, by agreement of December 28, 1871, with the contractor for the completion of the construction of the railroad, it was stipulated that the contractor should receive a controlling interest in outstanding capital stock of the railroad company.

Cincinnati and Fort Wayne Railroad Company
Introductory

This company, a corporation of Indiana, owned, at its demise, an uncompleted railroad lying between Richmond and Adams, Ind., on which no rail had been laid. The accounting records which are obtainable are so incomplete that a full statement of property, investments, or finances can not be given. No entries which could be identified were recorded in the records subsequent to March 15, 1866. However, for the purposes of this report, July 5, 1866, is shown herein as the date of demise of this company.

Development of Fixed Physical Property

The construction of the property of this company was begun about the year 1853, construction work being performed principally by Wm. Sturgis, contractor. It could not be ascertained from the records that are obtainable whether or not the contractor was in any way affiliated with the company. It states that little construction work was performed after 1855.