Wikipedia:WikiProject Trains/ICC valuations/Louisiana Southern Railway

Interstate Commerce Commission, Valuation Reports, Volume 29

Location and General Description of Property
The railroad of the Louisiana Southern Railway Company, herein called the Louisiana Southern is a single-track, standard-gage, steam railroad, extending from New Orleans southerly along the east side of the Mississippi River to Bohemia, a distance of 50.053 miles, with a branch from Poydras Junction to Shell Beach, a distance of 15.605 miles, all in Louisiana. The Louisiana Southern also owns 16.056 miles of yard tracks and sidings. Its road thus embraces 81.714 miles of all tracks owned, all of which is leased to the New Orleans, Texas & Mexico Railroad Company for common-carrier purposes.

Introductory
The Louisiana Southern is a corporation of the State of Louisiana, having its principal office at New Orleans, La. It controlled by the Gas, Water, and General Investment Trust, Limited, of London, England, through ownership of a majority of the outstanding capital stock.

From July 10, 1911, to December 31, 1917, the property of the Louisiana Southern was operated by the New Orleans, Texas & Mexico Railway Company and its immediate predecessor. On January 1, 1918, the common-carrier property of the company was taken over for operation by the United States Railroad Administration, which operates it on date of valuation.

The records of the Louisiana Southern for the period from February 27, 1897, to June 1, 1902, were destroyed by fire, and those for the period from July 1, 1902, to February 1, 1911, are incomplete. Therefore, only partial information can be given from the accounts in connection with the finances, operations, aids, investments, or original cost.

Corporate History
The Louisiana Southern was incorporated February 27, 1897, under the general laws of the State of Louisiana, for the purpose of acquiring, owning, and operating the railroad formerly owned by the New Orleans & Southern Railroad Company. Pursuant to this purpose, the Louisiana Southern acquired at its organization the property, rights, and franchises of the New Orleans & Southern Railroad Company. The Louisiana Southern itself, and the New Orleans & Southern Railroad Company, together with its predecessors, total eight different corporations, and comprise the line of succession culminating in the Louisiana Southern as at present constituted. The following chart shows the names of the corporations, 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.

Development of Fixed Physical Property
The road owned by the Louisiana Southern, amounting to 65.658 miles, was acquired by purchase from the New Orleans & Southern Railroad Company.

Of the seven corporations which comprise the line of succession culminating in the Louisiana Southern as at present constituted, four corporations did not construct any property. Those corporations were—
 * New Orleans & Southern Railroad Company.
 * New Orleans and Gulf Railroad Company (1).
 * Southeastern Railroad Company.
 * St. Bernard Railroad Company.

The data with respect to the miles of road constructed by the three remaining corporations, the years in which the various portions of the line were constructed, and the manner in which the Louisiana Southern acquired the property, are indicated in the following table, wherein, to facilitate comparison with the table showing corporate succession, previously given, the same order of corporations is maintained:

Leased Railway Property
The property of the Louisiana Southern devoted to common-carrier purposes was operated by the New Orleans, Texas & Mexico Railway Company and its immediate predecessor, effective July 10, 1911, under lease agreement dated February 1, 1911, until December 31, 1917. From January 1, 1918, to date of valuation, the property has been operated by the United States Railroad Administration as an operating unit of the New Orleans, Texas & Mexico.

Under the terms of the lease, which expires February 1, 1923, the New Orleans, Texas & Mexico acquired for sole operation the entire railroad owned by the Louisiana Southern.

The lease provides for the following on the part of the lessee: Payment of $5 per annum as rental; application of net earnings from use and operation of property firstly toward payment annually to lessor of $10,000 in quarterly installments for its organization expenses; secondly, toward payment of all taxes and assessments on property or earnings; thirdly, toward payment of interest on bonds of lessor; and, fourthly, toward payment of an annual dividend of 2½ per cent upon par value of stock of lessor, noncumulative. Of any excess of net receipts over above payments to be made the lessee retains one-half payments made to lessor as dividend and any residue to be divided two-thirds to lessor and one-third to lessee.

New Orleans & Southern Railroad Company
The New Orleans & Southern Railroad Company was incorporated April 8, 1871, under the general laws of Louisiana.

This company acquired 65.658 miles of road formerly owned by the New Orleans and Gulf Railroad Company (No. 2) by deed executed by Ernest B. Kruttschnitt, dated July 29, 1891. The consideration named in the deed was $200,000 par value of capital stock and $1,000,000 par value of 6 per cent first mortgage bonds.

This company did not construct any additional road. Approximately 20 miles of the road between Poydras and Bohemia was abandoned and the tracks taken up by the receiver of the New Orleans & Southern Railroad Company just prior to the sale of the property to the Louisiana Southern on April 30, 1897. This mileage was later restored. With its own organization it operated the road acquired, from July 29, 1891, to October 26, 1896, excepting for a short time when the property was in the hands of United States courts.

The property of this company was sold on October 26, 1896, under foreclosure of deed of trust to E. A. Hopkins, acting for and in behalf of the Louisiana Southern, and Hopkins executed deed to the property to the Louisiana Southern on April 30, 1897.

New Orleans and Gulf Railroad Company (No. 2)
The New Orleans and Gulf Railroad Company (No. 2) was formed on October 26, 1886, through consolidation of the Mississippi, Terre-aux-Boeuf and Lake Railroad Company and the New Orleans and Gulf Railroad Company (No. 1). No records of the New Orleans and Gulf Railroad Company (No. 2) have been obtained.

This company acquired in the consolidation of October 26, 1886, all the property, rights, and franchises of the consolidating companies. The property thus acquired consisted of a railroad from Shell Beach to Poydras, 15.605 miles, and from Poydras, to New Orleans 13.17 miles, a total of 28.775 miles. From August 27, 1886, to July 2, 1887, the company constructed a railroad from Poydras to Bohemia, 36.883 miles, making the total owned mileage as of date of sale, July 23, 1891, 65.658 miles.

The property owned by the company was operated by its own organization from October 26, 1886, until July 23, 1891, excepting for a short time when the railroad was in the hands of United States courts.

The property of the company was sold July 23, 1891, under foreclosure of deed of trust to E. B. Kruttschnitt, who executed a deed on July 29, 1891, to the New Orleans & Southern Railroad Company.

New Orleans and Gulf Railroad Company (No. 1)
The New Orleans and Gulf Railroad Company (No. 1) was incorporated August 13, 1886, under the general laws of Louisiana. No records of this company have been obtained. The company did not construct any railroad, and on October 26, 1886, it was consolidated with the Mississippi, Terre-aux-Boeuf and Lake Railroad Company to form the New Orleans and Gulf Railroad Company (No. 2).

Mississippi, Terre-aux-Beouf and Lake Railroad Company
The Mississippi, Terre-aux-Beouf and Lake Railroad Company was incorporated by special act of the Legislature of Louisiana, approved March 23, 1887. No records of this company have been obtained.

On December 21, 1882, this company acquired by purchase from W. A. Gordon, the railroad formerly owned by the Southeastern Railroad Company, extending from Shell Beach to Poydras, La., a distance of 15.605 miles. Subsequent to December 21, 1882, and prior to August, 1886, the company constructed an extension of its railroad from Poydras to its present terminus in New Orleans, La., a distance of 13.17 miles. It operated the 28.775 miles from the date acquired by purchase and the date of construction, until October 26, 1886.

On October 26, 1886, this company was consolidated with the New Orleans and Gulf Railroad Company (No. 1) to form the New Orleans and Gulf Railroad Company (No. 2).

Southeastern Railroad Company — Predecessor of the Mississippi, Terre-aux-Beouf and Lake Railroad Company
The Southeastern Railroad Company was incorporated by special act of the Legislature of Louisiana, approved March 15, 1855. No records of this company have been obtained.

This company, on January 26, 1867, purchased from the Estate of A. Gordon, the railroad formerly owned by the Mexican Gulf Railway Company. This company did not construct any additional railroad, and on May 1, 1868, on account of nonpayment of the purchase price, the property was returned to the estate.

W. A. Gordon, son of A. Gordon, came into complete possession of the property, rights, and franchises, through suits in the Civil District Court (transferred from the twenty-second District Court of Louisiana) on April 2, 1869, and in the Fifth District Court on August 12, 1874.

On December 21, 1882, W. A. Gordon disposed of the property by sale to the Mississippi, Terre-aux-Boeuf and Lake Railroad Company.

Mexican Gulf Railway Company — Predecessor of the Southeastern Railroad Company
The Mexican Gulf Railway Company was incorporated in 1837 by a special act of the Legislature of Louisiana and reincorporated by a further special act in 1845. No records of this company have been obtained.

At some time subsequent to its original incorporation in 1837, this company constructed a railroad from Proctor's Landing (now Shell Beach), La., on Lake Borgne, to Poydras Landing on the Mississippi River, a distance of 15.605 miles. This original line is now known as the Shell Beach branch of the Louisiana Southern.

The railroad owned by this company was operated by its own organization from 1837 to March 26, 1850, when the property, with all rights and franchises, was disposed of by sheriff's sale to the Estate of A. Gordon.

The property was disposed of by the Estate of A. Gordon by sale to the Southeastern Railroad Company on January 26, 1867.

Southeastern Railroad Company — Predecessor of the Mexican Gulf Railway Company
The Southeastern Railroad Company was incorporated under a special act of the Legislature of Louisiana, approved March 10, 1834. No records of this company have been obtained.

The records of St. Bernard Parish, La., were lost when the courthouse was destroyed in a storm. Therefore, the history of this company can not be obtained. The company did not actually construct any railroad, but transferred all its rights and franchises to the Mexican Gulf Railway Company.