Wikipedia:WikiProject Trains/ICC valuations/Kensington and Eastern Railroad

Interstate Commerce Commission, Valuation Reports, Volume 46

Location and General Description of Property
The railroad of the Kensington and Eastern Railroad Company, herein called the Kensington and Eastern, is a double-track, standard-gage railroad, constructed for electric service, located in the northeastern part of Illinois. The owned mileage extends from Kensington southeasterly to the Illinois-Indiana State line.

The company does not operate its property. A portion of its road is operated jointly by the Illinois Central and the Chicago, Lake Shore and South Bend Railway Company. With the exception of two short stretches of track the remaining mileage is operated exclusively by the Chicago, Lake Shore and South Bend Railway Company.

The Kensington and Eastern owns but does not use 16.584 miles of all tracks, as classified in appendix 1.

Introductory
The Kensington and Eastern is a corporation of the State of Illinois, having its principal office in Chicago, Ill. It is controlled by the Illinois Central through ownership of its entire outstanding capital stock. It owns 6.973 miles of standard-gage, steam railroad, classified as first main, and 6.402 miles of second main track, all in Illinois.

On date of valuation the Kensington and Eastern did not operate or use any of its property. A portion of the road extending from Kensington to One Hundred Twenty Fifth Street, Chicago, was operated jointly under lease by the Illinois Central, for freight service only, and the Chicago, Lake Shore and South Bend Railway Company, an electric railway. With the exception of 0.197 mile of second main track at Kensington and 0.397 mile of siding for the Knickerbocker Ice Company's plant, used by the Illinois Central, the remainder of the road was operated exclusively by the Chicago, Lake Shore and South Bend Railway Company as a part of its main line in reaching Chicago.

Corporate History
The Kensington and Eastern was incorporated October 10, 1904, under the general laws of Illinois for the purpose of constructing and operating a railroad from a point of connection with the Illinois Central at Kensington (Chicago), to a point on the Illinois-Indiana State line.

Development of Fixed Physical Property
The railroad of the Kensington and Eastern was acquired by construction. Preliminary surveys were begun in July 1904 but actual construction did not commence until January 1907. The north track was ready for use under the lease April 4, 1909. The south track was opened for operation September 1, 1909. With the exception of the bridge work, which was by contract, the road was constructed by company forces.

Leased Railway Property
By indenture of October 18, 1904, provision was made for the construction and leasing of the property of the Kensington and Eastern. Subsequent indentures dated April 3, 1909, July 11, 1911, and May 16, 1914, provide for use of the tracks and facilities by the Chicago, Lake Shore and South Bend Railway Company, a portion of the line exclusively, and a portion jointly with the Illinois Central. The joint tracks are maintained by the Illinois Central and the expense apportioned to tenants on basis of cars handled. The Chicago, Lake Shore and South Bend Railway Company maintains at its own expense the tracks used exclusively by it, and pays interest of 2 to 5 percent per annum on the cost of the property.

The Illinois Central pays no fixed rental for the portion of the property it uses. The rentals payable by the Chicago, Lake Shore and South Bend Railway Company are collected by the Illinois Central and retained by it as interest on the unliquidated advances made to the Kensington and Eastern. The rental so retained for the year ended on date of valuation amounted to $39,949.77, being assessed on the following valuation: Taxes paid by the Chicago, Lake Shore and South Bend Railway Company for the year ended on date of valuation amounted to $3,940.18.