Wikipedia:WikiProject Trains/ICC valuations/Minneapolis, St. Paul and Sault Ste. Marie Railway

Interstate Commerce Commission, Valuation Reports, Volume 143

Minneapolis, St. Paul & Sault Ste. Marie Railway
Tentative valuations as of June 30, 1916, of the properties of Minneapolis, St. Paul & Sault Ste. Marie Railway Company, hereinafter called the Soo Line, and Minnesota Northwestern Electric Railway Company, and as of June 30, 1917, of the properties of Wisconsin Central Railway Company, Central Terminal Company, Gogebic and Montreal River Railroad Company, and Wisconsin & Northern Railroad Company, were completed and notices thereof were served upon the respective carriers and other interested parties.

Introductory
The Soo Line is a corporation of Michigan, Wisconsin, Minnesota, and the former Territory of Dakota. Its principal office is in Minneapolis, Minn.

The Soo Line caused to be incorporated a company known as the Tri-State Land Company, whose capital stock is owned entirely by the Soo Line. The Tri-State Land Company's operations, in the main, were the purchasing of large tracts of land along the proposed routes and surveys of the Soo Line's road. Of such lands, portions were sold to settlers, portions were used for town sites, and portions were transferred to the Soo Line for transportation purposes.

On April 1, 1909, an agreement was entered into between the Soo Line and the Wisconsin Central, under the terms of which control of all the property of the Wisconsin Central was transferred to the Soo Line for a period of 99 years from April 1, 1909. This agreement covered the acquisition of the voting rights of the Wisconsin Central through an exchange of $11,176,800 par value of the Soo Line's leased line stock certificates for $11,176,800 par value of preferred stock of the Wisconsin Central. The agreement recites that the preferred stock of the Wisconsin Central should be deposited with the Agents Bank of Montreal, New York, N. Y., as trustees, which was to effect the exchange of securities. In this manner, the carrier acquired control of the Wisconsin Central. In the event of default in the payment of $4 per share per annum on each of the Soo Line's 4 per cent leased line stock certificates, the trustee is to return the preferred stock to the original holders and cancel the leased line stock certificates.

The so-called lease is more in the nature of an operating agreement than a lease. The Soo Line does not participate in the profit realized or the losses sustained in the operation of the property of the Wisconsin Central, nor does it pay a rental of any description in connection with the lease. All profits or losses accrue to the Wisconsin Central. The salaries of certain officers of the Soo Line who are also officers of the Wisconsin Central are paid proportionately by both companies.

The control of the Soo Line on date of valuation was with the Canadian Pacific Railway Company through ownership of $19,082,800 par value of the $37,810,200 par value of capital stock outstanding.

The Soo Line, through stock ownership, controls other companies solely or jointly. The Central Terminal, the Western Express Company, and the Tri-State Land Company are controlled solely through ownership of all their capital stock. The Wisconsin Central is controlled solely through ownership of 72.7 per cent of that company’s capital stock.

The names of companies controlled jointly by the Soo Line with other carriers and the percentage of stock owned is as indicated below:

Location and General Description of Property
The railroad of the Soo Line is a standard-gauge, steam railroad, located in Michigan, Wisconsin, Minnesota, South Dakota, North Dakota, and Montana. The principal main line extends from Sault Ste. Marie, Mich., southwesterly to St. Paul and Minneapolis, Minn., thence northwesterly to Portal, N. Dak., on the international boundary. Other main lines reach Duluth, Thief River Falls, and Noyes, Minn., and points in North Dakota. The main line and branches serve large portions of the States of Minnesota and North Dakota, the northern peninsula of Michigan, the northern part of Wisconsin, and small sections of South Dakota and Montana. The Soo Line wholly owns and uses 3,803.567 miles of tracks, and owns but does not use 20.123 miles of tracks, and jointly owns and uses trackage with other carriers. It also operates, under a lease or operating agreement, which will be hereinafter more particularly described, the common-carrier properties of the Wisconsin Central and of its lessors, the Central Terminal and the Gogebic and Montreal.

The Soo Line wholly owns and uses 3,803.567 miles of tracks, and owns but does not use 20.123 miles of tracks, which are classified in the trackage table in Appendix 1. It also owns or uses trackage with other carriers as shown in Appendix 1.

Corporate History
The Soo Line was created under the laws of Michigan, Wisconsin, Minnesota, and the former Territory of Dakota, through filing the agreement for the consolidation of the Minneapolis, Sault Ste. Marie and Atlantic Railway Company (of 1887). The Minneapolis and St. Croix Railway Company, The Aberdeen, Bismarck and Northwestern Railway Company; and The Minneapolis and Pacific Railway Company. The articles of consolidation were signed June 11, 1888, filed in the then Territory of Dakota on June 12, 1888, and in the States of Michigan, Wisconsin, and Minnesota on June 13, 1888. The term of years for which the Soo Line is incorporated is stated in the agreement for consolidation as being the same as that of the consolidating companies. The articles of incorporation for the Minneapolis, Sault Ste. Marie and Atlantic (of 1887) and the Aberdeen, Bismarck and Northwestern do not specify the term. The term for the Minneapolis and St. Croix was 100 years from September 15, 1883, and for the Minneapolis and Pacific, 100 years from September 15, 1884. The Soo Line's stated purpose was to acquire, own, hold, possess, use, exercise, and enjoy all the rights, powers, privileges and immunities owned, held, possessed, used, exercised, and enjoyed by each of the companies consolidated.

The corporate history of the Soo Line involves fifteen predecessor companies all of which are reported upon herein. The following chart shows the names of the corporations, the respective dates of incorporation, and of succession, the immediately succeeding corporation and the manner of succession. Reference to each of these companies is made in the last column by its respective number shown in the first column:

1 Although included in the consolidation of June 11, 1888, the property, rights, and franchises of 5 had been sold in January, 1888, to 2.

Development of Fixed Physical Property
The mileage of road wholly owned by the Soo Line on date of valuation, amounting to approximately 3,145 miles, was acquired as follows:

By consolidation and direct purchase.—The location of property acquired by purchase, the names of predecessor companies involved in their construction when completed, and of companies which sold them to the Soo Line, the dates of construction, and mileage of road are shown in the following tabulation: 1 Although included in the consolidation of June 11, 1888, the property, rights, and franchises of this company had been sold in January, 1888, to the Minneapolis, Sault Ste. Marie and Atlantic (of 1887).

By construction.—The location of property acquired by construction, the dates constructed and placed in operation and the mileage of road are shown in the following tabulation:

Leased Railway Property
The Soo Line uses on date of valuation facilities owned by other companies and other companies use facilities owned by the Soo Line to the extent indicated in the statement below. The description of the property, the period and terms of use, and the rentals accrued and charged or credited to income for the year ending on date of valuation, are as follows:

The Soo Line accrued as rental paid for the use of property of others for the year ended on date of valuation an aggregate of $580,908.64. It accrued as rental received from others for the use of property during the same year a total of $277,740.32.

Minneapolis, Sault Ste. Marie and Atlantic Railway (of 1887)
Introductory

This company was created on March 22, 1886, by the consolidation of The Minneapolis, Sault Ste. Marie and Atlantic Railway Company (of 1883) and The Menominee and Sault Ste. Marie Railway Company. Articles of consolidation were filed in the office of the secretary of state of Michigan, on March 30, 1887, and of Wisconsin, on April 13, 1887. It was controlled by W. D. Washburn, of Minneapolis, Minn., and his associates. On June 11, 1888, the company was consolidated with The Minneapolis and Pacific Railway Company, The Minneapolis and St. Croix Railway Company, and The Aberdeen, Bismarck and North western Railway Company to form the Soo Line.

At the date of consolidation, the company owned and operated about 500 miles of single-track, standard-gauge railroad, extending eastward from Shoreham, in Minneapolis, Minn., to Sault Ste. Marie, Mich., about 490 miles, with branches extending southward from Cardigan Junction to Soo Line Junction in St. Paul, Minn., about 5 miles, and northward from Dresser Junction to St. Croix Falls, about 5 miles. It also operated, under trackage rights, about 0.75 mile of railroad of the Northern Pacific Railway Company between Camden and Northtown Junction, in Minneapolis.

Development of Fixed Physical Property

Of the 500 miles of road owned on the date of demise, 67 miles was acquired from The Minneapolis, Sault Ste. Marie and Atlantic (of 1883), 41 miles from The Minneapolis and St. Croix, and 392 miles through construction. Details with respect to the construction of this property are given in the chapter on development of fixed physical property of the Soo Line.

The Minneapolis, Sault Ste. Marie and Atlantic Railway (of 1883)
Introductory

This company was incorporated under the general laws of Wisconsin, on September 29, 1883, for an unstated period. It was incorporated by W. D. Washburn, of Minneapolis, Minn., and his associates, and was controlled by them from its inception, to March 22, 1886, on which date the company was consolidated with The Menominee and Sault Ste. Marie Railway Company, forming Minneapolis, Sault Ste. Marie and Atlantic Railway Company (of 1887).

At date of consolidation, the company owned and operated about 67 miles of single-track, standard-gauge railroad, extending from Turtle Lake to Main Creek, Wis., all of which was acquired by construction in 1884–85. In addition, the company owned about 195 miles which was under construction, 37 miles between the Minnesota-Wisconsin State line and Turtle Lake, and 158 miles between Main Creek and the Wisconsin-Michigan State line.

The Menominee and Sault Ste. Marie Railway
This company was incorporated under the general laws of Michigan, on April 20, 1885, for a period of 100 years, by W. D. Washburn of Minneapolis, Minn., and his associates, and was controlled by them from its inception to March 22, 1886. On March 22, 1886, the company was consolidated with The Minneapolis, Sault Ste. Marie and Atlantic Railway Company (of 1883) to form the Minneapolis, Sault Ste. Marie and Atlantic Railway Company (of 1887). The company constructed no railroad and made no expenditures for railroad property.

The Minneapolis and St. Croix Railway
This company was incorporated under the general laws of Minnesota on September 15, 1883, for a period of 100 years by W. D. Washburn, of Minneapolis, and his associates, and was controlled by them from its inception to June 11, 1888.

Although the railroad property, rights, and franchises of this company were sold to the Minneapolis, Sault Ste. Marie and Atlantic (of 1887) in January, 1888, it was also included in the consolidation of June 11, 1888, to form the Soo Line. The reason for this is not disclosed in the records.

The property of this company, at the date it was sold, consisted of about 36 miles of single-track railroad, extending from a point known as Shoreham in Minneapolis, Minn., to a connection with the railroad of the Minneapolis, Sault Ste. Marie and Atlantic (of 1887) at a point on the boundary line between Minnesota and Wisconsin, also about 5.5 miles, extending from Cardigan Junction, Minn., to a point known as Soo Line Junction in St. Paul, Minn. The former line was constructed during 1887 and the latter during 1887 and 1888. These lines were placed in operation on September 12, 1887, and February 22, 1888, respectively, by the Minneapolis, Sault Ste. Marie and Atlantic (of 1887), which exclusively operated all of this company's property under the terms of a lease running for a period of 40 years from January 1, 1886.

No books of this company were obtained. Therefore, no complete statement of its financial affairs can be made. The outlay for constructing this company’s property is included in the investment in road and equipment account of the Minneapolis, Sault Ste. Marie and Atlantic (of 1887), but can not be separately identified therein.

In the consolidation of June 11, 1888, the Soo Line issued $1,200 par value of its stock in exchange for an equal par value of the stock of this company, although the stock-certificate book of this company indicated that none of its stock was outstanding. No information concerning the discrepancy was obtained.

The Aberdeen, Bismarck and Northwestern Railway; The Ordway, Bismarck and Northwestern Railway
Introductory

This company was incorporated on June 1, 1883, under the provisions of chapter 46 of the public laws of the Territory of Dakota, approved February 18, 1879, for an unstated period, as The Ordway, Bismarck and Northwestern Railway Company. On June 1, 1887, its name was changed to The Aberdeen, Bismarck and Northwestern Railway Company. The company was controlled by the Northwestern Construction and Improvement Company, a Minnesota corporation, of which Thos. Lowry was president. It is pointed out that Thos. Lowry was associated with W. D. Washburn and others in the incorporation of The Minneapolis and Pacific Railway Company, another one of the companies consolidating on June 11, 1888, to form the Soo Line.

On June 11, 1888, the company was consolidated with The Minneapolis, Sault Ste. Marie and Atlantic Railway Company (of 1883), The Minneapolis and Pacific Railway Company, and The Minneapolis and St. Croix Railway Company to form the Soo Line. At the date of the consolidation, the company owned about 113 miles of graded roadbed and certain right of way between Aberdeen and Bismarck, in the then Territory of Dakota. The right of way was acquired and the grading was done by the construction company, between October, 1886, and May, 1888, on behalf of the railroad company.

The Minneapolis and Pacific Railway
Introductory

This company was incorporated under the general laws of Minnesota on September 4, 1884, by W. D. Washburn and Thomas Lowry, of Minneapolis, and their associates, and was controlled by them from its inception to June 11, 1888, when it was consolidated with The Minneapolis, Sault Ste. Marie and Atlantic Railway Company (of 1887); The Minneapolis and St. Croix Railway Company; and The Aberdeen, Bismarck and Northwestern Railway Company to form the Soo Line.

At date of consolidation the company owned and operated about 286 miles of single-track, standard-gauge railroad, extending from Minneapolis, Minn., to Boynton, in the Territory of Dakota, of which about 187 miles was situated within the State of Minnesota and 99 miles within the Territory of Dakota. The railroad was constructed mainly by Langdon and Company, contractors, of Minneapolis, Minn., on behalf of the railroad company, in 1886–87.

The Rice Lake, Dallas & Menominee Railway
Introductory

This company was incorporated under the provisions of chapter 87 of the annotated statutes of Wisconsin on February 9, 1893, for an unstated period. Insufficient records were obtainable from which to determine the ownership of its capital stock. On November 15, 1899, and October 1, 1900, all the property, rights, and franchises of the company were sold to the Soo Line, possession being given November 1, 1900. The property consisted of two lines of single-track railway. One of them, about 7 miles in length, constructed in 1894, extended from a connection with the railway of the Soo Line at Rice Lake, Wis., to Cameron, Wis. The other, about 18 miles in length, constructed in 1900, extended from a connection with the railway of the Soo Line at Barron, Wis., to Ridgeland, Wis.

Rice Lake & Northern Railway
This company was incorporated on March 12, 1901, under the provisions of chapter 87 of the revised statutes of Wisconsin, of 1898, for an unstated period. No general books of this company and but few records of any kind were found. For that reason very little information can be stated with respect to its affairs. The minutes show that all its capital stock was subscribed to by Geo. Tullen, of St. Paul, Minn., and Geo. M. Huss, of Chicago, Ill. Funds for the construction of the road were supplied by the Soo Line and charged to its own investment account, but such charges can not be identified therein from charges for the Soo Line's own property. Construction of the railroad was commenced in 1901 and continued until February 20, 1902, when its property, rights, and franchises were sold to the Soo Line. The property consisted of about 16 miles of railroad, extending from a connection with the Soo Line's road at Rice Lake to Birchwood, Wis.

Bismarck, Washburn and Great Falls Railway; Bismarck, Washburn and Fort Buford Railway
Introductory

This company was incorporated under the general laws of North Dakota on May 13, 1889, as the Bismarck, Washburn and Fort Buford Railway Company. Its period of existence was not stated. On January 10, 1900, its name was changed to Bismarck, Washburn and Great Falls Railway Company. All this company's stock, excepting 20 shares issued as directors' qualifying shares, was held by Wm. D. Washburn, of Minneapolis, Minn., but was pledged by him as security for a loan by the Soo Line to the company. On May 7, 1904, all the property, rights, and franchises of this company were sold to the Soo Line, possession being given on May 15, 1904. At the date of sale, the property consisted of about 58 miles of single-track railroad between Bismarck and Underwood, N. Dak. In addition to the railroad, the company owned two steamboats, one ferry boat, and two barges, which were operated on the Missouri River, but the exact location and extent of their operations are not known. All of the railroad was acquired by construction. Details with respect to the construction of this property are given in the chapter on development of fixed physical property of the Soo Line.

Superior, Balsam Lake and Southern Railway
This company was incorporated under the laws of Wisconsin on April 14, 1900, for an unstated period. The company did not construct any railroad. On May 1, 1901, it sold to the Soo Line all its right and title to construct a railroad between a point near Milltown, Polk County, Wis., and a point on the north boundary of Polk County, Wis. The records that were obtained disclose that the promotion expenses of this company, aggregating $6,881.77, were either paid or assumed by John H. Savage, secretary of the company. He was reimbursed by the Soo Line through its purchase of certain of this company’s rights. The company's authorized capital stock was $100,000. If any of it was issued, the consideration received therefor can not be ascertained. Some 14 of the shares were subscribed for by J. W. Park and 13 other citizens of Polk County, Wis.

Tony & North Eastern Railway
This company was incorporated on October 6, 1902, under chapter 87 of the revised statutes of Wisconsin of 1898, for an unstated period. Insufficient records were obtained from which to ascertain the ownership of its capital stock, although all of it, excepting one share, was subscribed for by John Hein, A. F. Hein, John Hein, Jr., and Peter Hein of Tony, Wis. Certain records in the possession of the Soo Line show that, on January 9, 1903, all of the property of this company, together with the rights and franchises appurtenant thereto, excepting only its rolling stock, were sold to the Soo Line. The property consisted of a railroad, extending from a connection with the railroad of the Soo Line at Tony, Wis., to a point about 2 miles northeasterly thereof. The road was constructed during the winter of 1902–1903 by the company. The rail and track fastenings used therein were furnished by the Soo Line, which retained title thereto. Immediately upon completion of the road, it was sold to the Soo Line for $6,602.90. No further information with respect to this company's activities was obtained.

Cuyuna Iron Range Railway
This company was incorporated on October 17, 1908, under chapter 58 of the revised statutes of Minnesota, of 1905, for a period of 999 years.

The property owned by this company was constructed by its own forces. Construction of the road was commenced in 1909 and was continued until March 4, 1910, when all the property, rights, and franchises, excepting only its franchise to be a corporation, were sold to the Soo Line. The property consisted of about 36 miles of uncompleted railroad, extending from a connection with the Soo Line's railroad near Lawler Junction, to Cuyuna, Minn.

Fairmount and Veblen Railway
Introductory

This company was incorporated under the laws of South Dakota of 1907 on December 18, 1912. By charter amendment, dated April 30, 1913, its period of existence was made indefinite. On January 30, 1915, all the property, rights, and franchises of the company, excepting its franchise to be a corporation, were sold to the Soo Line, possession being given July 1, 1915. On June 30, 1916, the date of valuation of the Soo Line, the company had not been formally dissolved, but its capital stock, which had been owned by the Soo Line, was canceled. The railroad consisted of about 87 miles of single main track, extending from a connection with the Soo Line's railroad at Fairmount, N. Dak., in a southwesterly direction to Grenville, S. Dak., together with about 8 miles of other tracks. This railroad was constructed under the Soo Line's supervision, by various independent contractors, in 1913–14.