Wikipedia:WikiProject Trains/ICC valuations/Mineral Range Railroad

Interstate Commerce Commission, Valuation Reports, Volume 26

Location and General Description of Property
The railroad of Mineral Range Railroad Company herein called the carrier, is a single-track, standard-gage, steam railroad, located in the most northerly part of the Upper Peninsula of Michigan. The owned mileage is in two separate parts: One part extends westerly from Keweenaw Bay to Riddle Junction and includes one short branch line extending westward from Mass. The other part extends northeasterly from Houghton to Laurium and from St. Mary's Junction on that line southeasterly to Point Mills. The two parts are joined by tracks of The Duluth, South Shore & Atlantic Railway Company, which runs from Houghton to Keweenaw Bay and beyond. The carrier also operated, under lease, other properties, as shown below.

Corporate History
The carrier was incorporated on November 3, 1871, under the general laws of the State of Michigan as the Mineral Range and L'Anse Bay Railroad Company. Its object was to construct and operate a narrow-gage railroad from the head of Keweenaw Bay in a northerly direction, via Houghton and Hancock, Mich., to the north line of Houghton County. On November 8, 1872, its name was changed to Mineral Range Rail Road Company and the proposed route to one extending in a westerly and southwesterly direction from Keweenaw Bay to a point on the Ontanagon River.

On June 1, 1888, as a result of the mismanagement of finances by certain of its officers, C. O. Wright was appointed receiver of the carrier and remained in control of its affairs until November 30, 1889.

Development of Fixed Physical Property
The owned mileage of the carrier was constructed by company forces, in sections, as follows:

In 1897 the carrier's line was changed from narrow to standard gage.

Leased Railway Property
Leased from others. — On June 1, 1901, the carrier leased in perpetuity, the narrow-gage line of the Hancock and Calumet, including 22.797 miles of road. In consideration the carrier standardized the roadbed and track, guaranteed the payment of the principal and interest on the lessor's consolidated 5 per cent bonds, of which $325,000 were outstanding, and agreed to apply its earnings and income to payment of maintenance and operating costs, including all taxes, and also cost of necessary additions and improvements, the balance, if any, to be paid as dividends on capital stock of the Hancock and Calumet. If the earnings and income are insufficient for the purpose specified, the carrier agreed to assume the difference without creating any further lien on the property of the Hancock and Calumet. By the provisions of the lease the carrier took over all the assets and liabilities of the Hancock and Calumet, crediting the excess of its current assets over current liabilities, amounting to $22,863.29, to improvements on leased railway property.

On September 3, 1901, the Hancock and Calumet leased for a term of five years, consideration not of record, the industrial railroad of the Mohawk Mining Company, including 15.875 miles of road. This lease was assumed by the carrier and upon its expiration a new lease was entered into between the carrier and the Mohawk Mining Company for a term of five years, at an annual rental of $1,700, which at expiration was extended for a term of six years at an annual rental of $2,700. No record appears in the accounts of the carrier showing payment of any rental.

The carrier, under verbal agreement with The Duluth, South Shore & Atlantic Railway Company, is granted trackage rights between Houghton and Pilgrim, about 2 miles, for which they pay at the rate of $5 per car out of the through transportation charge, all the expense of transportation being borne by the carrier.

The carrier acquired from the county of Houghton, under lease dated February 18, 1902, the right to construct a track and to use jointly with the Copper Range Railroad Company the under deck of the steel draw span over Lake Portage between Houghton and Hancock, Mich., about 1 mile, at an annual rental of $250.

Leased to others. — The use of Portage Lake bridge is granted to the Copper Range Railroad Company for an annual consideration of $2,800 and 50 per cent of the maintenance expenses.

Agency agreement. — Passenger service, on the line of the carrier north of Houghton, is conducted by the Duluth, South Shore & Atlantic Railway Company, which furnishes the equipment and bears the entire cost of such operation without cost to the carrier. The Duluth, South Shore & Atlantic Railway Company retains all the revenue earned except that portion of the mail and express revenue between Houghton and Calumet, which goes to the carrier. In addition, The Duluth, South Shore & Atlantic Railway Company pays 40 cents per train mile. There is no written agreement covering the arrangement.