Wikipedia:WikiProject Trains/ICC valuations/Kentwood and Eastern Railway

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The railroad of Kentwood & Eastern Railway Company, hereinafter called the carrier, is a single-track steam railroad located in the eastern part of Louisiana with the exception of a short spur track which extends into the southern part of Mississippi. The owned mileage is a standard-gauge line which extends from Bolivar Junction, La., to Pineview, La., a distance of 14.163 miles. The carrier also owns yard and side tracks of which 3.662 miles are standard gauge in Louisiana, 1.607 miles are narrow gauge in Louisiana, and 1.83 miles are narrow gauge in Mississippi. The narrow-gauge tracks in Louisiana are along lines leased to the carrier and the narrow-gauge track in Mississippi is the spur track mentioned above. The road leased to the carrier extends from Kentwood, La., to Hackley, Louisiana., of which the portion from Kentwood to Bolivar Junction has three rails, used both as a standard and a narrow gauge line and the portion from Bolivar Junction to Hackley is narrow gauge.

The carrier owns 21.162 miles of all tracks and uses under lease 36.914 miles of all tracks as follows:

Corporate history.—The carrier was incorporated on December 6, 1906, for a period of 99 years, under the laws of Louisiana. The purpose of the corporation, as declared in its articles, was to construct, purchase, and operate a continuous line of railroad from the town of Kentwood, Tangipahoa Parish, La., to the eastern and northern boundary of the State of Louisiana, thence through the State of Mississippi and other States necessary to reach the Atlantic seaboard or deep water on the Gulf of Mexico. The principal office of the carrier is at Kentwood, La. On date of valuation, control of the carrier was held by Brooks–Scanlon Company, of Minneapolis, Minn., and individuals connected with that company through ownership of a majority of the outstanding capital stock. The detailed facts as to the development of the fixed physical property are given in Appendix 2.

The carrier constructed all of its owned property, and with the exception of the grading and clearing, which were performed by independent contractors, the work was done by the railway's own forces. The exact dates on which the various pieces of construction were begun are not of record. The approximate dates of the completion of the various sections and the existing owned mileage are as follows:
 * APPENDIX 2
 * DEVELOPMENT OF FIXED PHYSICAL PROPERTY

Beginning with the date of its incorporation, the carrier has operated exclusively, under lease from Brooks–Scanlon Company, 30.02 miles of main track, which was reduced to 29.817 miles through revisions made by the carrier in January, 1909. It also converted 3.259 miles of this line, between Kentwood and Bolivar Junction, into a combination three-rail standard-gauge and narrow-gauge track.


 * HISTORY OF CAPITAL FINANCING

Through lease from the Brooks–Scanlon Company the carrier operates exclusively a line of railroad, extending from Kentwood to Hackley, La., 29.817 miles in length (known as the Kentwood and Eastern Railroad). The lease covers a period of 20 years, from July 1, 1906, and provides for the payment by the lessee of an annual rental of $10,000 and all taxes, [...] 60 per cent by the lessor.

The property known as the Kentwood and Eastern Railroad, leased from the Brooks–Scanlon Company, apparently was never incorporated. The initial line of approximately 3 miles was constructed in 1890 by the Isabella Lumber Company, now defunct, which extended the property from time to time to a total length of approximately 8 miles, and operated the same until November 1, 1895.

On November 1, 1895, all of the timber holdings and other property of the Isabella Lumber Company were disposed of through United States marshal's sale, for a consideration of $32,500, to the Banner Lumber Company, Limited, of Kentwood, La., which operated the railroad property apparently as a lumber-plant facility, and extended same at various times to a total length of 30.02 miles.

On November 1, 1905, the Banner Lumber Company, Limited, sold all of its holdings, excepting some cut-over timberlands, to the Brooks–Scanlon Company, for a consideration of $450,000, which included the railroad property and equipment, timberlands, sawmill, and sundry property in Kentwood. As of the date of sale, the books of Banner Lumber Company, Limited, indicate the investment in the railroad property to have been, for road [...] Immediately upon its acquisition of the property, the Brooks–Scanlon Company appraised the railroad, fixed property and rolling stock at $160,000, and on May 14, 1907, sold the rolling stock to the carrier for the total sum of $37,500.