Wikipedia:WikiProject Trains/ICC valuations/Gulf and Ship Island Railroad

Interstate Commerce Commission, Valuation Reports, Volume 106

Location and General Description of Property
The railroad of Gulf and Ship Island Railroad Company, hereinafter called the carrier, is a single-track, standard-gauge steam railroad, located entirely within Mississippi in the southeastern quarter of the State. The main line extends from Jackson south-southeast through Mendenhall, Hattiesburg, and Maxie to Gulfport on the Gulf of Mexico, a distance of 160.944 miles, including main track in the Gulfport Terminal. A semicircular branch extends southward from Mendenhall and then swings around to the east and joins the main line again at Maxie, a distance of 104.834 miles. Another branch extends from Saratoga in a general easterly direction through Laurel to Kingston, a distance of 42.648 miles. The entire owned road mileage thus comprises 308.426 miles. The carrier also owns 106.422 miles of yard and side tracks. The property thus includes in its entirety 414.848 miles of all tracks.

Corporate History
The carrier was first incorporated March 3, 1850, by special act of the Mississippi Legislature. After a lapse of the charter, a renewal of it, and another lapse from the time of the Civil War, a new incorporation under a perpetual charter was made February 23, 1882, by special act of the Mississippi Legislature. The charter conferred the right to reclaim, own, use, or dispose of submerged lands in a strip 1 mile wide and extending 6 miles from the Gulf coast at Gulfport. This provision was designed to afford the carrier piers and wharves for a water terminal.

On August 16, 1892, the carrier was forced into receivership and so remained until September 15, 1896, when its obligations were discharged by J. T. Jones, of Bradford, Penna. Jones was in control of the construction company, which had assumed a contract made by another party with the receiver for the completion of certain construction work. In this transaction Jones acquired all of the outstanding capital stock, except eight directors' qualifying shares, and has since controlled the carrier.

On September 24, 1900, the carrier acquired the Columbia, Lumberton & Gulf Railroad Company from the construction company, which had purchased it at foreclosure sale the preceding August 1.

Development of Fixed Physical Property
On October 20, 1885, the carrier entered into a contract under which convict labor from the Mississippi State Penitentiary was to be used by the construction contractor in building the road. A section of road was built under this contract in the northern part of the State, in accordance with the project as originally planned, but was lost through foreclosure sale August 1, 1889, and is now part of the Gulf, Mobile and Northern Railroad Company.

Meanwhile construction under this contract was also begun at the southern end of the projected line, from Gulfport northward. But financial difficulties led to the abrogation of the arrangement for the use of convict labor. After the work had been taken up and then abandoned by each of two construction companies in turn, the carrier itself completed the work and put in operation, early in 1887, about 20 miles of line from Gulfport northward to just beyond Saucier. Some 50 miles more, extending as far north as Hattiesburg, was under construction by the carrier when the receivership was established in August, 1892.

The receiver, on September 26, 1895, contracted with S. S. Bullis for repairing the 20 miles already under operation, completing the construction to Hattiesburg, and erecting a pier and dock at Gulfport. This contract was assigned by Bullis to the construction company. It was in connection with this work that J. T. Jones, on behalf of the construction company, paid off the obligations of the carrier and lifted the receivership, at the same time acquiring control of the carrier.

The construction company completed the line to Hattiesburg January 1, 1897, and in July, 1900, completed some 91 miles more to Jackson. On August 1, 1900, the construction company bought at foreclosure the property of the Columbia, Lumberton & Gulf Railroad Company, comprising some 49 miles of line from Maxie, on the carrier's own line, northwestward to Columbia, and on September 24 following turned it over to the carrier. This branch was extended for the carrier some 56 miles by the construction company in a sweeping curve to the northward until it met the carrier's line again at Mendenhall, about 32 miles from Jackson. The construction company turned this extension over to the carrier in sections at different times from February, 1904, to April, 1906.

A logging road had been built, some 20 miles westward from Laurel, in 1889 by Eastman, Gardiner and Company, a lumber company. The construction company bought this property, added about 22 miles to bring it into connection with the carrier's line at Saratoga, and turned the entire property over to the carrier in July, 1900. These developments have brought the carrier's line to its present composition on date of valuation.

The construction of harbor facilities for light-draught vessels at Gulfport was begun by the receiver in 1895, but there is no record of when these facilities were completed.

Under a contract with a representative of the United States Government, dated February 20, 1901, and made pursuant to an act of Congress of March, 1889, the carrier dredged a ship channel some 7 miles long from Ship Island to the harbor at Gulfport and an anchorage basin adjacent to the docks at that point, completing the work in 1902. The contract provided that, subject to appropriation by Congress, the Government would pay $150,000 toward this work and $10,000 annually for five years for maintenance. In 1906 Congress appropriated $150,000 toward the reimbursement of the carrier for this outlay, but it has not been found whether the carrier received any aid toward the maintenance of this channel and basin. The next year Congress took over for the Government the maintenance of the channel in lieu of the annual payment to the carrier therefor. This property has been used by sailing vessels since January 25, 1902, and by ocean steamships since November 15, 1902.

Exclusively Used Property
Owned or leased by carrier and leased to others

The carrier owns certain rail which, with other rail leased by it from Illinois Central Railroad Company, it leases to various parties, as follows: There was leased by the carrier from the Illinois Central Railroad Company, 671 tons of rail and 43 tons of angle bars; annual rent, 6 per cent of valuation of $23 per ton. No record of rental accrued on this rail; part of it had been leased only a few months and more was being received on date of valuation. The above rail, together with a quantity owned by the carrier, is leased to others, as follows:

To various lumber companies, 2,200 tons of rail at the rate of $1 per ton per annum. The rental accrued during the year ended on date of valuation is $1,617.97.

To Ingram Day Lumber Company, 327 tons of rail for $1 per annum for the entire tonnage. No rental accrued for this during the year ended on date of valuation.

Jointly Used Property
Owned by carrier, jointly used by others

The carrier grants to other companies a joint use of certain of its property, as stated hereunder. The amounts shown as rentals accrued for the year ended on date of valuation are that part only of the stipulated consideration which is creditable to joint-facility rents.

To Mississippi Central Railroad Company, main track to extent of 0.49 mile, at Hattiesburg, and station facilities comprising the lower floor of Hotel Hattiesburg, which, as noted below, is leased by the carrier for station purposes. The carrier sublets the joint use thereof. For the joint use of all these station and track facilities by the Mississippi Central Railroad Company the consideration stipulated is $600 per annum. The rental accrued during the year ended on date of valuation is $600.

To Cumberland Telephone and Telegraph Company, carrier's right of way for telephone and telegraph pole line. The stipulated consideration for this joint use is a lump payment of $20 per mile. In 1906 the carrier received, with no mention of time limit, a total of $6,104.

To Eastman, Gardiner & Company, main track between Saratoga and Laurel, 40.98 miles. When this property was conveyed to the construction company for improvement and extension and later conveyed to the carrier, Eastman, Gardiner & Company reserved the right to use the track for logging trains without consideration.

To Camp & Hinton Company, main track between Maxie and Columbia, 48.35 miles. When this property was conveyed by Camp & Hinton Company to the construction company for improvement and subsequent conveyance to the carrier, Camp & Hinton Company reserved the right to use the tracks for logging trains without consideration.

To certain lumber companies, named hereunder, traffic contracts with four lumber companies, executed between 1910 and 1915 for handling the output of lumber mills, grant those companies the joint use of certain tracks, but do not specify the rent to be paid the carrier. The names of the lumber companies and the tracks in point are, respectively, as follows:

Owned by others, jointly used by the carrier

The carrier enjoys the joint use of property owned by other companies, as here stated. The accrued rentals shown are the parts of the respective stipulated considerations that are chargeable to joint-facility rents.

Owned by Illinois Central Railroad Company: Station facilities and 0.44 mile of main track and 0.12 mile of other tracks, all for passenger trains only, at Jackson, Miss. The consideration stipulated for the use of this property is 2.5 per cent per annum on an agreed valuation of $16,083.85 for the tracks and a wheelage proportion of 5 per cent per annum on an agreed valuation of $179,663.43 for the station facilities. Additions and betterments are added to the agreed valuations. The carrier also pays a wheelage proportion of the operating expenses. During the year ended on date of valuation the rental accrued for the use of this property was $1,377.08.

Owned by Great Southern Hotel Company: The lower floor of Hotel Hattiesburg, at Hattiesburg, Miss. This is leased by the carrier for use as a passenger station, but a joint use is sublet by the carrier to Mississippi Central Railway Company, as noted above. The stipulated rental by the carrier to the owner is $1,500 per annum. The rental accrued during the year ended on date of valuation was $1,500.00.