Wikipedia:WikiProject Trains/ICC valuations/Kansas City Southern Railway

Interstate Commerce Commission, Valuation Reports, Volume 75

Location and General Description of Property
The railroad of The Kansas City Southern Railway Company, hereinafter referred to as the carrier is located in the States of Kansas, Missouri, Arkansas, and Oklahoma. Its main line extends from Armourdale, Kans., on the outskirts of Kansas City, Mo., to Belt Junction, Mo., a distance of 17.973 miles; from Air Line Junction, Mo., to Independence, Mo., a distance of 5.585 miles; from Grand View, Mo., to Mena, Ark., a distance of 356.271 miles; and from Spiro, Okla., to Fort Smith, Ark., a distance of 16.434 miles. It also owns a second main line from Armourdale, Kans., to Belt Junction, Mo., embracing 5.391 miles. Its total main-line mileage is 401.654 miles. In addition to main-line tracks owned, the carrier owns 222.721 miles of other track. It embraces 624.375 miles of all tracks.

The tracks of the St. Louis & San Francisco Railroad Company between Belt Junction, Mo., and Grand View, Mo., a distance of 11.028 miles, are used under a trackage arrangement to unite the main lines of the carrier terminating at those points.

In addition to this mileage the following properties are owned by organizations separate and distinct from that of the carrier, but the carrier owns all of the securities and operates the properties:

By means of tracks owned and operated as above, and through the operation of the tracks of the Texarkana & Fort Smith Railway Company in Texas by that company, a direct main line from Kansas City, Mo., to Port Arthur, Tex., a distance of 789 miles, is provided.

Introductory
The Kansas City Southern Railway Company, hereinafer styled the carrier, is a Missouri corporation having its principal operating and accounting offices in Kansas City, Mo., and its principal financial office in New York City.

It owns two stretches of single-track standard-gauge railroad, one extending from Armourdale, Kans., on the outskirts of Kansas City, Mo., to Belt Junction, Mo., the other from Grand View, Mo., to Mena, Ark., connection between the two being had over the tracks of the St. Louis & San Francisco Railroad Company from Belt Junction to Grand View. A branch extends from Spiro, Okla., to Fort Smith, Ark. The property owned lies in the States of Missouri, Kansas, Oklahoma, and Arkansas, and the general direction taken by the road is south from Kansas City.

The carrier operates the owned main and branch line mileage; in addition it operates that portion of the property of the Texarkana & Fort Smith Railway Company lying within the State of Arkansas and the property of Kansas City, Shreveport & Gulf Railway Company. This latter named property lies wholly within the State of Louisiana. The Texarkana & Fort Smith Railway Company so operates those portions of its line within the State of Texas as to give continuity to the system generally known and popularly designated as The Kansas City Southern Railway Company extending from Kansas City, Mo., on the north to Port Arthur, Tex., on the south. The Port Arthur Canal & Dock Company operates its property at the latter-named point so as to supply the connecting link between the railway and deep water.

The carrier owns all of the outstanding capital stock of the three other companies mentioned, and by reason of that fact dominates and controls them. As a result the accounts and records have been so established as to obscure, and to a very considerable extent render indeterminable, many facts essential to an investigation respecting the properties owned. The investment accounts of the other two railway companies have been merged with that of The Kansas City Southern Railway Company, because the latter regards itself as the proprietor of the entire line of railway from Kansas City, Mo., to Port Arthur, Tex., with the exception of that portion used under trackage rights, even though it owns in fee simple a portion only of the property embraced in that line.

The carrier is independent of, and is not dominated by, any other railway system, or by any group of financial interests. The majority of its securities are held by the general public, large blocks of its stock being owned by citizens of Holland.

Corporate History
The carrier was incorporated on March 19, 1900, under the laws of the State of Missouri, for 999 years. The purpose of the corporation as declared in its articles was to construct, maintain, and operate a standard or broad gauge railroad for public use in the conveyance of persons and property. The incorporators were nominees of the Philadelphia Reorganization Committee, which represented the bondholders of the Kansas City, Pittsburg & Gulf Railroad Company, and its allied companies. The real and immediate purpose of the corporation, which was consummated on March 22, 1900, was to purchase and take title to the property, rights, and franchises of the Kansas City, Pittsburg & Gulf Railroad Company, then insolvent, and whose affairs were being administered by receivers.

On January 4, 1902, the carrier came into possession of the franchises, properties, and rights of the Kansas City & Independence Air Line, the Union Terminal Railroad Company, and the Kansas City Suburban Belt Railroad Company through foreclosure proceedings.

The franchises and properties of the corporations thus acquired were those of Missouri corporations with the exception of the Union Terminal Railroad Company, which was a Kansas corporation.

The corporations whose franchises and properties have gone to make up the present company and the dates of the changes in those several corporations are shown in the following table:

Development of Fixed Physical Property
The fixed physical property of the carrier was acquired under foreclosure proceedings. That acquired from the Kansas City, Pittsburg & Gulf Railroad Company extended from Grand View, Mo., to Mena, Ark., with the branch from Spiro, Okla., to Fort Smith, Ark., while that acquired from the terminal companies extended from Armourdale, Kans., on the outskirts of Kansas City, to Belt Junction, Mo.

The carrier has built no extensions to these properties but has made many changes in them, such as the relocation of certain stretches, reduction of grades, elimination of curves, widening of embankment, filling trestles, and sundry others to overcome flood conditions. The accomplishment of this program necessitated the abandonment of many stretches of the original track and was not confined alone to the property owned by the carrier but was extended to the controlled properties which the carrier operated.

The classification of the mileage operated by the carrier is as follows: The carrier affords trackage rights over its rails to other companies as follows: 1 The boundary line between the States of Louisiana and Texas.

Leased Railway Property
The carrier uses jointly terminal facilities and tracks of other carriers, as follows:

Main line of the St. Louis & San Francisco Railroad Company from Grand View, Mo., to Belt Junction, Mo., a distance of 11.028 miles, for which an annual rental is paid of 3 per cent on a fixed valuation of $165,450 plus expenditures for additions and betterments, together with 50 per cent of the cost of operation and taxes, and a portion of the maintenance cost divided on a wheelage basis.

Joplin Union Depot Company's passenger station and facilities, at Joplin, Mo., are used jointly with other railroads, for which the carrier pays an annual rental of 14 per cent of $650,000 plus a portion of the cost of operation and maintenance, which is divided on a car basis.

The passenger station facilities at Shreveport, La., owned by The Kansas City, Shreveport & Gulf Terminal Company, are used jointly with several other railroads, for which the carrier pays an annual rental of $4,200.

The carrier also uses numerous unimportant facilities of other carriers, such as interlockers, etc., which are not considered pertinent in connection with this report.

Kansas City, Pittsburg & Gulf Railroad, formerly Kansas City, Nevada & Fort Smith Railroad
Corporate History

The Kansas City, Nevada & Fort Smith Railroad Company was incorporated under the general laws of the state of Missouri on November 6, 1889, for the purpose of building a standard-gauge railroad to extend from Kansas City, Mo., to the southern boundary of that State. The term of the corporate existence of the company was fixed at 50 years and its principal offices were established in Kansas City, Mo.

The organizers were Edward L. Martin, Arthur E. Stilwell, and William S. Taylor, who were at the time officers and directors of the Missouri, Kansas,[sic] & Texas Trust Company of Kansas City, Mo.

On January 31, 1890, the property, rights, and franchises of the Kansas City, Rich Hill & Southern Railroad Company, a Missouri corporation were purchased.

On January 26, 1893, the name of the Kansas City, Nevada & Fort Smith Railroad Company was changed by appropriate charter amendment to that of the Kansas City, Pittsburg & Gulf Railroad Company, hereinafter designated as the Gulf, and at the same time the charter was amended so as to permit the extension of the line by construction, purchase, or lease to the Gulf of Mexico, through the states of Missouri, Kansas, Arkansas, Texas, and Louisiana.

In the meantime the promoters of this company, operating through the Arkansas Construction Company, had caused the latter, for purposes of control, to acquire on December 13, 1892, the securities of the Texarkana & Fort Smith Railway Company, a Texas corporation. This acquisition enabled the Gulf to consummate its plans for a line of railway through the State of Texas, which prohibits foreign corporations from owning property or doing business within that state.

As the laws of the state of Louisiana at that time denied the right of eminent domain to foreign corporations, the Gulf, in order to fulfill its plans, caused the incorporation in the state of Louisiana of the Kansas City, Shreveport & Gulf Railway Company on September 27, 1894.

On September 25, 1894, the Gulf purchased the property, rights, and franchises of the Kansas City, Pittsburg & Western Railroad Company and of the Pittsburg, Fort Smith & Southern Railroad Company, both Kansas corporations.

On October 30, 1897, the Gulf purchased the property, rights, and franchises of the Kansas City, Fort Smith & Southern Railroad Company through one of the construction companies that had previously acquired the property and rehabilitated it.

Because of default in the payment of interest on its bonds, the affairs of the Gulf were placed in the hands of receivers on April 1, 1899; the property, rights, and franchises were sold under decree of foreclosure and sale on March 22, 1900, to The Kansas City Southern Railway Company, which took possession and began operating the property on April 1, 1900.

Development of Fixed Physical Property

The railway of the Gulf, including that acquired by it from other corporations, was built by construction companies organized for that specific purpose by the Missouri, Kansas & Texas Trust Company, except that the 50 miles of road between Joplin, Mo., and Sulphur Springs, Ark., was originally built by an independent corporation and was subsequently purchased by one of the construction companies referred to, rehabilitated and the title conveyed to the Gulf.

The line owned by the Gulf extended from Grand View, in Jackson County, Mo., in a general southerly direction to Mena, in Polk County, Ark., a distance of approximately 356.31 miles, with a branch line extending from Spiro, Okla., to Fort Smith, Ark., a distance of approximately 16.40 miles.

The dates the several sections of the line were completed and placed in commercial service are shown in the table exhibited below: 1Date placed in service by construction companies; operated by Gulf from January 1, 1893.

The Gulf operated all of the owned mileage stated above, and in order to reach Kansas City secured trackage rights over 11.01 miles of the line of the St. Louis & San Francisco Railroad Company from Grand View, Mo., to Belt Junction, Mo., where connection was made with the Kansas City Suburban Belt Railroad Company, whose tracks were used into Kansas City. Mo., a distance of 11.99 miles.

The Gulf as the controlling corporation operated that portion of the mileage of the Texarkana & Fort Smith Railway Company lying outside of the State of Texas aggregating a total of 105.29 miles. It also operated all of the proprty of the Kansas City, Shreveport & Gulf Railway Company, consisting of approximately 252 miles of road situated wholly within the State of Louisiana. The operation by the Texarkana & Fort Smith Railway Company of its mileage within the state of Texas was so conducted as to complete the through line of railway from Kansas City, Mo., on the north to Port Arthur, Tex., on the south, contemplated in the charter of the Gulf.

Kansas City, Rich Hill & Southern Railroad
This company was incorporated on August 2, 1887, under the general laws of the state of Missouri for the purpose of building, operating, and maintaining a standard-gauge railroad from a point near the union depot in Kansas City, Mo., to Rich Hill, Mo., a distance of approximately 80 miles. The incorporators were S. F. Scott, E. L. Martin, and others of Kansas City, Mo. The development of this company did not proceed beyond the initial surveys and the acquisition of a small amount of right of way.

On January 31, 1890, the property, rights, and franchises were conveyed by deed to the Kansas City, Nevada & Fort Smith Railroad Company for $400,000 of the securities of that company, divided equally between stocks and bonds.

The Kansas City, Pittsburg & Western Railroad
This company was incorporated under the laws of the State of Kansas on July 22, 1892, at the instance of the controlling interests of the Kansas City, Nevada & Fort Smith Railroad Company.

It was chartered— "to build, construct, maintain, and operate a standard-gauge line of railroad, and telegraph lines in connection therewith, from a point on the state line between the states of Missouri and Kansas on the east side of Crawford county, Kans., and forming a connection with the Kansas City, Nevada & Fort Smith Railroad Company's track as the same shall be hereafter located and constructed, and running thence through the counties of Crawford, Cherokee, LaBette, Montgomery, Chautauqua, and Cowley, in the state of Kansas, to a point at or near the southwest corner of said county of Cowley. And the estimated length of said railroad is two hundred and fifty (250) miles."

About 9.5 miles of track were constructed from a point in Crawford county, Kans., on the boundary line between Kansas and Missouri, to a point at Seventh Street and Michigan Avenue in the city of Pittsburg, Kans., which upon completion in 1893, was operated by the Gulf.

[...]

The property, rights, and franchises of this company were sold on September 25, 1894, to the Gulf, and deed was executed as of that date. The considerations named in the deed were (a) one dollar, (b) moneys advanced to defray cost of construction, and (c) the assumption of this company's agreement with the city of Pittsburg, Kans.

Pittsburg, Fort Smith & Southern Railroad
This company was incorporated under the laws of the State of Kansas on July 22, 1892, at the instance of the controlling interests of the Kansas City, Fort Smith & Nevada Railroad Company[sic]. It was chartered— "to build a standard-gauge railroad from the city of Pittsburg in Crawford county, Kans., thence through the counties of Crawford and Cherokee in the state of Kansas, and thence on by the most practicable route to the city of Fort Smith in the state of Arkansas. And the estimated length of the said railroad is two hundred (200) miles."

About 9.5 miles of railroad were constructed in 1893 for this company from Seventh Street and Michigan Avenue in the city of Pittsburg, Kans., in a southerly direction to a point on the Kansas-Missouri State line, where connection was had with the line of the Gulf, which operated the property upon completion.

[...]

On September 25, 1894, the property, rights, and franchises of this company were sold to the Gulf and a deed executed as of that date. The considerations named in the deed consist of (a) one dollar and (b) moneys furnished to defray the cost of constructing this company's line of railroad.

Kansas City, Fort Smith & Southern Railroad
This company was incorporated under the general laws of the state of Missouri on March 7, 1887, and appears to have been an independent enterprise not affiliated in anywise with any other railroad project. It was chartered— "to maintain and operate a standard-gauge railroad from Kansas City, Mo., to Splitlog City and southward to the State of Arkansas, and be of the length of 200 miles in Missouri through the counties of Jackson, Cass, Bates, Vernon, Barton, Jasper, Newton, and McDonald."

It owned a standard-gauge single-track railway extending from Joplin, in Jasper county, Mo., to Sulphur Springs, in Benton county, Ark., an approximate distance of 50 miles, which was constructed during the years 1890 and 1891.

The Missouri Coal & Construction Company purchased the property in January, 1893, for the sum of $742,500 for the purpose of rehabilitating and delivering it to the Gulf as part of the mileage which the construction company was then under contract to build for that railroad. The deed conveying the property, rights, and franchises to the Gulf is dated October 30, 1897.

Kansas City Suburban Belt Railroad
Corporate History

On July 14, 1892, The Kansas City Suburban Belt Railroad Company and the Consolidated Terminal Railway Company of Kansas City, both Missouri corporations agreed to unite, join together, and combine their property, rights, and franchises and form a new company, and to that effect articles of consolidation were filed with the secretary of State of Missouri on July 25, 1892, creating the Kansas City Suburban Belt Railroad Company, hereinafter designated the Belt, which, under the terms of the articles of consolidation, came into possession of the property, rights, and franchises of the two companies so combined and united.

On December 31, 1901, the property of the Belt was sold under decree of foreclosure and sale to The Kansas City Southern Railway Company and deed executed by the master commissioner on January 4, 1902, conveying the property, rights, and franchises of the Belt to the purchaser, The Kansas City Southern Railway Company.

Development of Fixed Physical Property

The records of the Belt indicate that on December 31, 1901, it owned: When the Belt took over The Kansas City Suburban Belt Railroad Company the latter's records indicated that it owned 11.64 miles of main track and some side-track mileage the extent of which was not a matter of record. The property taken over from the Consolidated Terminal Railway Company consisted of 1.5 miles of principal track, which was at the time under construction, besides sidetracks, the amount of which is not a matter of record.

The Belt operated all of its own mileage, and in addition it operated from January 1, 1898, the property of the Kansas City & Independence Air Line; it also operated the property of the Union Terminal Railroad Company from the time that property was opened for commercial service, March 26, 1895.

The mileage owned and operated by the Belt on December 31, 1901, is shown in the following table: From July 25, 1892, to December 31, 1901, the Kansas City, Pittsburg & Gulf Railroad Company and its successor, The Kansas City Railway Company, used the property of the Belt jointly with the owner in order to reach the terminal facilities in Kansas City, Mo. Likewise, the Kansas City & Independence Air Line used the Belt's property between July 25, 1892, and December 31. 1897, for the same purpose.

On behalf of the controlling company, the Missouri, Kansas & Texas Trust Company, the Belt constructed the line of the Kansas City & Northern Connecting Railroad Company, which extended from Kansas City, Mo., north to Pattonsburg, Mo., a distance of about 74 miles. That mileage, however, has never formed any part of the Belt's property, nor has it been operated by the Belt.

The Kansas City Suburban Belt Railroad
Corporate History

The above-named company, hereinafter styled the Suburban, was incorporated under the general laws of the state of Missouri on January 8, 1887, and its corporate existence continued until July 25, 1892, when its property, rights, and franchises were consolidated with those of the Consolidated Terminal Railway Company of Kansas City to form the Kansas City Suburban Belt Railroad Company.

It was incorporated by E. L. Martin, S. F. Scott, and seven persons, residents of Kansas City, Mo., for the purpose of constructing, maintaining, and operating a standard-gauge railroad from a point near the old Union Depot in Kansas City, Mo., eastwardly to a point near the Blue River, thence along that river and Brush Creek via the most practicable route to a point at or near the place of beginning. The company was incorporated for a period of 100 years and its principal office was established in Kansas City, Mo.

Development of Fixed Physical Property

The line owned was constructed in two sections, known respectively as the first division and the second division, and consisted of the following mileage: Certain sidetrack mileage was provided, but the records do not indicate the extent thereof.

Early in the fall of 1889 the construction of the first division was begun under contract by the Kansas City Terminal Construction Company, a Missouri corporation organized by A. E. Stilwell and his associates for the specific purpose of building this line. This contract was canceled in May, 1890. The construction company was paid for the work it had done. The Suburban undertook the completion of the work begun by the construction company and also assumed the liabilities of the latter. The division was opened for commercial service on August 18, 1890.

Shortly after taking over the work begun by the construction company the Suburban commenced the construction of its second division. Local contractors and the building department of the Missouri, Kansas & Texas Trust Company participated in this work. By January 21, 1891, the line was in such a condition as to permit the movement of trains over it, although the construction work was not entirely completed.

Consolidated Terminal Railway of Kansas City
Corporate History

The above-named company, hereinafter styled the Consolidated, was incorporated under the laws of the state of Missouri on May 21, 1891, and continued its corporate existence until July 25, 1892, when its property, rights, and franchises were consolidated with those of The Kansas City Suburban Belt Railroad Company to form the Kansas City Suburban Belt Railroad Company.

The purpose of the Consolidated was to construct, maintain, and operate a standard-gauge railroad from a point on Second Street between Holmes and Walnut streets in Kansas City, Mo., in a general westerly direction, to a point on the boundary line between the States of Missouri and Kansas where it would connect with the line of the Union Terminal Railroad Company.

The Consolidated was incorporated at the instance of The Kansas City Suburban Belt Railroad Company. The incorporators were E. L. Martin, A. E. Stilwell, A. A. Mosher, and five others who were at the time connected with both the Missouri, Kansas & Texas Trust Company and The Kansas City Suburban Belt Railroad Company.

The consolidation of this company and The Kansas City Suburban Belt Railroad Company was effected before the Consolidated had completed the construction of its mileage and it was therefore never an operating company.

Development of Fixed Physical Property

This company undertook, but did not complete, the construction of about 1.5 miles of its principal track. The construction of sidetrack mileage was also commenced, but the extent of it is not a matter of record. It also participated in the construction of a bridge across the Kansas River to permit of connection with the line of the Union Terminal Railroad Company. The work begun by the Consolidated was completed by its successor company, the Kansas City Suburban Belt Railroad Company.

Kansas City & Independence Air Line
Corporate History

The above-named company, hereinafter styled the Independence company, was incorporated under the general laws of the State of Missouri on January 23, 1891, and maintained a corporate existence until December 31, 1901, when its property, rights, and franchises were sold under decree of foreclosure to The Kansas City Southern Railway Company. The purchaser took immediate possession and the deed of conveyance was executed by the master commissioner on January 4, 1902.

The incorporators of the company were A. E. Stilwell, E. L. Martin, and their associates, who were at the time also identified with the Missouri, Kansas & Texas Trust Company of Kansas City, Mo., and the railways promoted by it.

Development of Fixed Physical Property

The main track of this company was merely a spur leading off from the main line of the Kansas City Suburban Belt Railroad Company, an affiliated corporation, and consisted of the following tracks: The construction of this line was let to the Kansas City Terminal Construction Company, a Missouri corporation, also a creature of the Missouri, Kansas & Texas Trust Company. The contract provided that the construction company should furnish the necessary right of way, construct the line, and equip it with sufficient rolling stock and motive power. The construction company sublet a considerable part of the work, and much of the structural work was done by the building department of the Missouri, Kansas & Texas Trust Company. Work was started in the summer of 1891 and the line was opened for commercial service on March 18, 1892. The track was afterwards ballasted and other betterments were made to the property, the principal one being the protection work installed along the Missouri River.

Union Terminal Railroad
Corporate History

The above-named company, hereinafter styled the Union company was incorporated under the laws of the State of Kansas on December 30, 1891, for a period of 99 years. Its incorporators were E. L. Martin, A. E. Stilwell, and five others who were at the time affiliated with the Missouri, Kansas & Texas Trust Company and sundry other railroad companies fostered by it.

The avowed purpose of the corporation was to build and operate a railroad which would encircle the city of Kansas City, Kans., and which was to connect with the line of the Consolidated Terminal Railway Company of Kansas City at the Missouri-Kansas State line and extend thence to Argentine, Kans.

A default in the payment of bond interest resulted in the appointment of receivers on September 6, 1900. On December 31, 1901, the property, rights, and franchises of the Union company were sold to The Kansas City Southern Railway Company, the present owner of the property.

Development of Fixed Physical Property

The property owned by the Union company was constructed for it by the Kansas City Suburban Belt Railroad Company, which sublet part of the work to the building department of the Missouri, Kansas & Texas Trust Company. The work was started in November, 1892, but due to litigation the line was not completed and placed in service until March 26, 1895.

As originally constructed it consisted of a principal side track built to reach an industrial center. Its principal track was about 5.18 miles long, and connecting with it were about 5.77 miles of spur and sidetrack, all situated wholly within Wyandotte County, Kans. The construction work was paid for in the securities of the Union company.