Wikipedia:WikiProject Trains/ICC valuations/Missouri, Kansas and Texas Railway

Interstate Commerce Commission, Valuation Reports, Volume 34

Location and General Description of Property
The railroad operated by the Missouri, Kansas & Texas Railway Company, herein called the Katy, is a standard-gage, steam railroad located in Missouri, Kansas, and Oklahoma. The railroad is single track with the exception of 54.213 miles of second main track in Oklahoma.

The owned railroad consists of a principal main line extending from Machens, Mo., in a general southwesterly direction through Parsons, Kans, to the Red River at the Oklahoma-Texas State line near Denison, Tex. Other important main lines extend from New Franklin to Hannibal, Mo.; Parsons to Paola, Kans.; Bryson, Mo., to Paola, Kans.; Parsons, Kans., to Oklahoma City, Okla.; and Oklahoma City to Atoka, Okla., with many branch lines. The properties used under lease consist of terminal facilities at St. Louis, Mo., and Oklahoma City, Okla., and a bridge over the Missouri River at Boonville, Mo. The principal cities served by the Katy are St. Louis, Jefferson City, Joplin, Columbia, Hannibal, Sedalia, Nevada, and Kansas City, Mo.; Parsons, Coffeyville, and Junction City, Kans.; and Bartlesville, Muskogee, Oklahoma City, McAlester, Tulsa, Shawnee, and Ada, Okla.

By means of trackage rights, through service is maintained between St. Louis, Mo., and the Oklahoma-Texas State line. A controlled company, The Missouri, Kansas and Texas Railway Company of Texas, which operates its own property, continues such service from the Oklahoma-Texas State line to Denison, Tex., and points south thereof.

The Katy wholly owns 1,622.238 miles of road, all of which it uses. It also wholly uses 4.158 miles of road owned by lessors, whose entire common-carrier properties it leases and operates, as described in the paragraphs below.

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In addition to the foregoing, the Katy uses under trackage rights 80.67 miles of the road of other carriers, including that portion of the Chicago, Burlington & Quincy Railroad Company's line between St. Louis and Machens, Mo., a distance of 22.96 miles, and that portion of the St. Louis-San Francisco Railway Company's line between Kansas City, Mo., and Paola, Kans., a distance of 42.29 miles, which afford access to its terminals at St. Louis and Kansas City. Further details with respect to these trackage rights are given in the chapter on leased railway property in Appendix 2.

The Katy wholly owns and uses 2,309.291 miles of all tracks, wholly owns but does not use 0.188 mile of all tracks, wholly uses but does not own 26.614 miles of all tracks, and jointly owns and uses with other carriers 10.231 undivided miles of all tracks. These tracks, consisting of first and second main tracks and yard tracks and sidings, are classified in the trackage table in Appendix 1.

Introductory
The Katy is a corporation of the state of Kansas, having its corporate office at Parsons, Kans., its executive office in New York, N.Y., and its general offices in St. Louis, Mo. and Parsons, Kans.

In the chapters of this report devoted to corporate history and development of fixed physical property, the present company is shown as having been incorporated November 24, 1899. It is pointed out that under an agreement entitled "Indenture of Consolidation," the Missouri, Kansas & Texas Railway Company (party of the second part) and The Kansas City & Pacific Railroad Company (party of the first part), agreed among other things, to the following:

"The party of the first part agrees to and hereby does consolidate with the party of the second part, and for that purpose, to merge its capital stock, franchises, property and rights with the capital stock, franchises, property and rights of the party of the second part, so that the said parties of the first and second part shall form a single corporation under the name of the Missouri, Kansas & Texas Railway Company.

"And the said party of the second part agrees to accept such merger and consolidation with said party of the first part and to increase its common capital stock by an amount equal to the capital stock of the party of the first part, so to be merged.

"The party of the second part agrees, when authorized in conformity with law to increase its common capital stock, to place in the hands of the president of the party of the first part an amount of its common capital stock equal to the capital stock of the party of the first part, to be exchanged on such consolidation for the stock of the party of the first part."

However, no new books were opened as of November 24, 1899, to show separation of the accounts relating to a corporation expiring as of November 24, 1899, and the one commencing as of that date, and it is not possible from an analysis of the accounts to ascertain, accurately, the details applicable to a time preceding and subsequent to November 24, 1899. For the purpose of this report the details as to corporate operations, financing, and investments have been stated as for one corporation continuing without interruption since the incorporation on September 25, 1865, of the Union Pacific Railway Company—Southern Branch, which changed its name in 1870 to Missouri, Kansas & Texas Railway Company (Katy).

The Katy is controlled by no individual or corporation. On the other hand, the Katy controls, through ownership of 99 per cent of their entire capital stock, the Missouri, Kansas & Texas Terminal and the Boonville Railroad Bridge Company, whose common-carrier properties it operates.

It controls, further, through ownership of 99 per cent of their capital stock, the Wichita Falls & Northwestern Railway Company, and the Houston and Brazos Valley Terminal Company, which operate their own respective properties. The Wichita Falls & Northwestern Railway Company, in turn, controls The Wichita Falls and Northwestern Railway Company of Texas, The Wichita Falls Railway Company, and the Wichita Falls and Wellington Railway Company of Texas.

The Katy controls The Missouri, Kansas and Texas Railway Company of Texas through a right to name the board of directors of that company, by whom it is controlled. The United States Trust Company of New York, trustee, holds the stock of The Missouri, Kansas and Texas Railway Company of Texas for the benefit of the stockholders and bondholders of the Katy, and gives its irrevocable proxy to vote the stock to the individuals nominated by the Katy.

It indirectly controls five other companies whose properties are operated under lease by The Missouri, Kansas and Texas Railway Company of Texas. The voting power of the stock of these companies was surrendered, under a court decree, to the board of directors of The Missouri, Kansas and Texas Railway Company of Texas, which board, through a right previously mentioned, is named by the Katy. The Katy owns over 90 per cent of the stock of these companies, which are as follows:
 * The Wichita Falls and Southern Railway Company.
 * The Denison, Bonham and New Orleans Railroad Company.
 * Beaumont and Great Northern Railroad.
 * San Antonio Belt and Terminal Railway Company.
 * Texas Central Railroad Company.

The Katy jointly controls, with others, the following companies:
 * Kansas City Terminal Railway Company.
 * Terminal Railroad Association of St. Louis.
 * Missouri and Illinois Bridge and Belt Railroad Company.
 * Joplin Union Depot Company.
 * Hannibal Union Depot Company.
 * Galveston, Houston and Henderson Railroad Company.
 * Houston and Brazos Valley Railway Company.

The property of the Katy was operated by its own organization from November 24, 1899, to September 27, 1915, from that date to December 31, 1917, it was operated by a receiver and from January 1, 1918, to date of valuation it has been operated by the United States Railroad Administration. It was operated by the Missouri, Kansas & Texas Railway Company (1865 corporation) from October, 1870, to December 31, 1874, and from July 1, 1891, to November 24, 1899; by receivers and trustees from January 1, 1875, to November 30, 1880, and from November 1, 1888, to June 30, 1891. From December 1, 1880, to October 31, 1888, it was operated under lease by the Missouri Pacific Railway Company.

At date of valuation the receivership had not been terminated.

Corporate History
The Katy was incorporated November 24, 1899, under the general laws of Kansas. It was formed by consolidation and merger of the Missouri, Kansas & Texas Railway Company (1865 corporation) and the Kansas City & Pacific Railroad Company, for the purpose of forming a single corporation, under the name of the Missouri, Kansas & Texas Railway Company, whose board of directors, management, officers, etc., would be those of the Missouri, Kansas & Texas Railway Company (1865 corporation) existing at that time, and to retire the outstanding capital stock of The Kansas City & Pacific Railroad Company through equal exchange for stock of the Katy.

Pursuant to the above purpose the Katy acquired the properties of the consolidating companies as of November 24, 1899, and subsequently acquired the property of six other railroad companies.

Prior to the incorporation of the Katy, the Missouri, Kansas & Texas Railway Company (1865 corporation) had acquired on various dates, under an act of August 2, 1870, of the Texas legislature, and operated the property of certain Texas corporations. It had also constructed and operated certain road in Texas under its own right. The corporations referred to, the dates acquired, the mileage owned by each and that constructed by the Missouri, Kansas & Texas Railway Company (1805 corporation) in Texas, are shown below.

The right of the Missouri, Kansas & Texas Railway Company (1865 corporation) to own property in the State of Texas was contested by the State of Texas through legal proceedings in the case of the East Line and Red River Railroad Company with the result that on February 17, 1890, the Supreme Court of Texas upheld a decree declaring the charter of the East Line and Red River Railroad Company forfeited. On April 13, 1891, under an order of the United States District Court, the property of the East Line and Red River Railroad Company was surrendered to a receiver, who had been appointed by the Texas State Court. On January 31, 1893, it was sold by the receiver to H. W. Poor, trustee, representing the Missouri, Kansas & Texas Railway Company (1865 corporation), and by him deeded on March 8, 1893, to the Sherman, Shreveport & Southern Railway Company, a predecessor of The Missouri, Kansas and Texas Railway Company of Texas.

Under authority granted by an act of the Texas legislature, approved April 16, 1891, the Missouri, Kansas & Texas Railway Company (1865 corporation) on November 18, 1891, sold the property it had acquired from eight of the Texas companies shown above and that constructed in Texas by it, aggregating 724.45 miles, to The Missouri, Kansas and Texas Railway Company of Texas.

Not including the 9 Texas companies above referred to, the Katy, itself, and the other corporations whose property it acquired, together with their predecessors, total 25 different corporations, 2 of which underwent a change of name, and comprise the line of corporate succession culminating in the Katy 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
Of the owned mileage of the Katy, amounting to 1,622.238 miles, approximately 1,146 miles were acquired in the consolidation of 1899, 456 miles were acquired by purchase, and 20 miles were constructed by the Katy.

Of the 25 corporations that comprise the line of succession culminating in the Katy as at present constituted, two, the Neosho Valley and Holden Railway Company and the Labette and Sedalia Railway Company, did not construct any road or other common-carrier property.

The property constructed by the remaining corporations, the years when the various portions of the line were constructed, and the manner in which the Katy acquired the property are indicated in the following table, wherein, to facilitate comparison with the table showing the corporate succession, the same order of corporations is maintained: The foregoing does not include any of the mileage of the Texas corporations nor that constructed in the State of Texas by the Missouri, Kansas & Texas Railway Company, detailed in the chapter on corporate history, all of which was disposed of in 1891.

Leased Railway Property
The Katy used on December 31, 1917, facilities owned by other companies, and other companies used facilities owned by the Katy, 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 ended December 31, 1917, are as follows: The item of $49,806.53 representing part of the rent payable for the use of the property of the Boonville Railroad Bridge Company has not been included in the income account by the Katy as rent paid.

Lessor Companies

 * Missouri, Kansas & Texas Terminal
 * The Boonville Railroad Bridge Company
 * Oklahoma Belt Railroad

Missouri, Kansas & Oklahoma Railroad Company (of 1903)
Introductory

The Missouri, Kansas & Oklahoma Railroad Company (of 1903) was incorporated December 12, 1903, in the Territory of Oklahoma. The Missouri, Kansas & Oklahoma Railroad Company (of 1903) was controlled on November 3, 1904, the date of sale, by the Katy under the terms of agreements made by the Texas & Oklahoma Railroad Company and the Missouri, Kansas & Oklahoma Railroad Company (of 1901) which were assumed by this company in the consolidation and under which the stock issued was held in trust for the Katy and the funded debt issued or assumed was guaranteed by the Katy. On the other hand, the records reviewed do not indicate that this company then controlled any common-carrier corporation.

The property of the Missouri, Kansas & Oklahoma Railroad Company (of 1903) was operated by the Katy from the dates acquired and completed to date of sale. The railroad owned by the Missouri, Kansas & Oklahoma Railroad Company (of 1903) on date of sale amounted to 394.39 miles of single-track, standard-gage, steam railroad. Its main lines extended from Stevens to Dewey, Oklahoma Territory, and from Bartlesville, Oklahoma Territory, via Oklahoma City, to Lehigh, Indian Territory, with one branch line extending form Fallis to Guthrie, Oklahoma Territory, and another from Osage, Oklahoma Territory, to Wybark, Indian Territory.

Development of Fixed Physical Property

Of the 394.39 miles of road owned by the Missouri, Kansas & Oklahoma Railroad Company (of 1903) on date of sale, it had acquired 45.31 miles of completed road from the Texas & Oklahoma Railroad Company and 166.17 miles of completed road from the Missouri, Kansas & Oklahoma Railroad Company (of 1901). It acquired 182.91 miles of road from those companies which was in course of construction, which it completed under the construction agreements of those companies. Further details with respect to the construction of this property are given in the chapter on development of fixed physical property in the report on the Katy.

Missouri, Kansas & Oklahoma Railroad Company (of 1901)
Introductory

The Missouri, Kansas & Oklahoma Railroad Company (of 1901) was incorporated December 23, 1901, in the Territory of Oklahoma. The Missouri, Kansas & Oklahoma Railroad Company (of 1901) was controlled on December 12, 1903, the date of consolidation, by the Katy under the terms of an agreement of May 1, 1902, which provided for exchange of the capital stock of this company for capital stock of the Katy and the ultimate acquisition of the property by the Katy. On the other hand, the records reviewed do not indicate that this company then controlled any common-carrier corporation.

The property of the Missouri, Kansas & Oklahoma Railroad Company (of 1901) was operated by the Katy from the dates of completion to date of consolidation. The road owned by this company on date of consolidation consisted of 166.17 miles of completed single-track, standard-gage railroad in three separate sections, one extending from Wybark, Indian Territory, to Hominy, Oklahoma Territory, one from Oklahoma City to (near) Agra, Oklahoma Territory, and one from Stevens to Dewey, Oklahoma Territory. It also had about 105.31 miles of road in the course of construction.

Development of Fixed Physical Property

The entire 166.17 miles of completed road owned by the Missouri, Kansas & Oklahoma Railroad Company (of 1901) was acquired by construction. The principal part of the work was performed by the Grigsby, Kinser Construction Company, which does not appear to have been affiliated with the company. The rail, ties, and other material was purchased from the Katy. Further details with respect to the construction of this property are given in the chapter on development of fixed physical property in the report on the Katy.

Texas & Oklahoma Railroad Company
Introductory

The Texas & Oklahoma Railroad Company was incorporated May 15, 1902, in the Territory of Oklahoma. Some of the financial transactions of the Texas & Oklahoma Railroad Company were not recorded in its accounts and certain information given below in connection therewith was obtained from contracts and other documents in possession of the Katy.

The Texas & Oklahoma Railroad Company was controlled on December 12, 1903, the date of consolidation, by the Katy under the terms of an agreement dated May 16, 1902, effective July 1, 1902, details of which are given in the chapter on history of corporate financing, and which is designated herein as the five-party agreement. On the other hand, the records reviewed do not indicate that this company then controlled any other common-carrier corporation.

The property of this company was operated by the Katy from the date of acquirement thereof to date of consolidation. The completed road owned by the Texas & Oklahoma Railroad Company on date of consolidation consisted of 45.31 miles of single-track, standard-gage, steam railroad, extending from Lehigh to Ada, Indian Territory. Its proposed line of 77.60 miles, from Ada to Oklahoma City, was in course of construction.

Development of Fixed Physical Property

Of the 45.31 miles of completed road owned by the Texas & Oklahoma Railroad Company on date of consolidation, 40 miles had been acquired by construction and 5.31 miles by purchase from the Denison & Washita Valley Railway Company. A large part of the construction work was performed by McArthur Brothers Company, which was not affiliated with the Texas & Oklahoma Railroad Company. It was not determined whether the remainder of the work was performed by company forces or by contract. Further details with respect to the construction of this property are given in the chapter on development of fixed physical property in the report on the Katy.

Denison & Washita Valley Railway Company
Introductory

The Denison & Washita Valley Railway Company was incorporated January 8, 1886, in the State of Texas. No accounting records of the Denison & Washita Valley Railway Company were obtained. Therefore, no information can be given from its accounts regarding its financial dealings, corporate operations, or investments. Certain information stated below was obtained from its minute books, records of its successors, and records of the Southwestern Coal & Improvement Company, which was controlled by the Katy. The Denison & Washita Valley Railway Company was controlled on May 13, 1903, the date of sale, by the Texas & Oklahoma Railroad Company through ownership of its capital stock. The Texas & Oklahoma Railroad Company was then controlled by the Katy. On the other hand, the records reviewed do not indicate that this company then controlled any common-carrier corporation.

The property of this company was operated by the Katy from the date of its completion to January 1, 1892, and that part of it in Indian Territory until May 13, 1903, the date of sale. From January 1, 1892, to date of sale, that part of the property in Texas was operated by The Missouri, Kansas and Texas Railway Company of Texas. The railroad owned by the Denison & Washita Valley Railway Company on date of sale amounted to 21.39 miles of single-track, standard-gage, steam railroad in two separate sections. One extended from Warner to Ray, Tex., 6.40 miles, the other from Atoka to Coalgate, Indian Territory, 14.99 miles.

Development of Fixed Physical Property

Of the 21.39 miles of railroad owned by the Denison & Washita Valley Railway Company on date of sale, 9.68 miles were acquired by purchase from the Katy, May 17, 1893, and 11.71 miles by construction. The construction was performed in part under contract by W. B. Munson, then president of the Denison & Washita Valley Railway Company, and in part by the Southwestern Coal & Improvement Company. Further details with respect to the construction of that part of the property sold to the Katy and the Texas & Oklahoma Railroad Company are given in the chapter on development of fixed physical property in the report on the Katy.

The property of this company was sold May 13, 1903, to three other companies, as follows:

Missouri, Kansas and Northwestern Railroad Company
The Missouri, Kansas and Northwestern Railroad Company was incorporated March 29, 1900, in the State of Missouri. No accounting records of the Missouri, Kansas and Northwestern Railroad Company were obtained. Therefore, no information can be given from its accounts regarding its financial dealings, corporate operations, or investments. However, certain data given below were obtained from its minute book and from other information in possession of the Katy. The Missouri, Kansas and Northwestern Railroad Company was controlled on May 20, 1902, the date of sale, by F. N. Finney through ownership of a majority of its outstanding capital stock. F. N. Finney was a director of and represented the Katy as consulting engineer in the construction and acquisition of new lines. On the other hand, the records reviewed do not indicate that this company then controlled any common-carrier corporation.

The Missouri, Kansas and Northwestern Railroad Company owned on date of sale approximately 28.85 miles of single-track, standard-gage, steam railroad, extending from Joplin, Mo., to Mineral, Kans. Of this it has acquired 23.20 miles from the Missouri, Kansas and Northwestern Railroad Company and 5.65 miles by construction.

The authorized capital stock of the Missouri, Kansas and Northwestern Railroad Company was $550,000 par value, divided into shares of $100 par value each. The entire amount authorized was issued but the considerations received therefor were not ascertainable from the records obtained. All of the stock issued was actually outstanding on date of sale and was exchanged for an equal par value of capital stock of the successor.

The Missouri, Kansas and Northwestern Railroad Company
The Missouri, Kansas and Northwestern Railroad Company was incorporated May 17, 1900, in the State of Kansas. No accounting records of The Missouri, Kansas and Northwestern Railroad Company were obtained. Therefore, no information can be given from its accounts regarding its financial dealings, corporate operations, or investments. However, certain data given below were obtained from its minute books and from other information in possession of the Katy.

The Missouri, Kansas and Northwestern Railroad Company was controlled on May 13, 1902, the date of sale, by F. N. Finney through ownership of its capital stock. F. N. Finney represented the Katy as consulting engineer in the construction and acquisition of new lines. On the other hand, the records reviewed do not indicate that this company then controlled any common-carrier corporation.

The Missouri, Kansas and Northwestern Railroad Company owned on date of sale approximately 23.20 miles of single-track, standard-gage, steam railroad, extending from Mineral, Kans., easterly to the Kansas-Missouri State line. The entire 23.20 miles of road owned by the company on date of sale had been acquired by construction in 1901.

The authorized capital stock of The Missouri, Kansas and Northwestern Railroad Company was $10,000 par value, divided into shares of $100 par value each. How much was actually issued and the considerations received therefor were not ascertainable from the records obtained.

The Fort Scott, Iola and Western Railway Company
The Fort Scott, Iola and Western Railway Company was incorporated June 24, 1901, in the State of Kansas. No accounting records of The Fort Scott, Iola and Western Railway Company were obtained. Therefore, no information can be given from its accounts regarding its financial dealings, corporate operations, or investments. However, certain data given below were obtained from its minute book and from the records of the Katy. The Fort Scott, Iola and Western Railway Company was controlled on April 10, 1902, the date of sale, by B. P. McDonald of Fort Scott, Kans., then a director of the Katy, through ownership of a majority of its outstanding capital stock. On the other hand, the records reviewed do not indicate that this company controlled any common-carrier corporation.

The railroad owned by The Fort Scott, Iola and Western Railway Company on date of sale amounted to 15.20 miles. It consisted of a single-track, standard-gage, steam railroad, extending from Moran to Iola, Kans. The entire road owned by The Fort Scott, Iola and Western Railway Company on date of sale had been acquired by construction during 1901-1902. The construction contract was made with J. E. Henderson, of St. Louis, Mo., who assigned it to the Middle States Construction Company.

The Fort Scott, Iola and Western Railway Company issued $270,000 par value of capital stock but the considerations received therefor were not ascertainable from the records obtained. All of the stock issued was actually outstanding on date of sale and was exchanged for an equal par value of capital stock of the successor.

Missouri Midland Railway Company
The Missouri Midland Railway Company was incorporated December 27, 1898, in the State of Missouri. No accounting records of the Missouri Midland Railway Company were obtained. Therefore, no information can be given from its accounts regarding its financial dealings, corporate operations, or investments. However, certain data given below were obtained from its minute books and from the records of the Katy. The Missouri Midland Railway Company was controlled on February 28, 1901, the date of sale, by Otto H. Miller of Cleveland, Ohio, through ownership of its entire outstanding capital stock. On the other hand, the records reviewed do not indicate that this company then controlled any common-carrier corporation.

The property of the Missouri Midland Railway Company was operated by its own organization from the date it was placed in operation to date of sale. The railroad owned by the Missouri Midland Railway Company on date of sale consisted of a single-track, standard-gage, steam railroad, extending from McBaine to Columbia, Mo., 8.55 miles, which had been acquired by construction during 1899. The construction work was performed by Johnston Bros. & Faught, contractors.

In the deed of the Missouri Midland Railway Company dated February 28, 1901, conveying its property to Otto H. Miller, it is stated that the company had outstanding on that date $99,300 par value of capital stock and $142,000 par value of first-mortgage 5 per cent bonds. The capital stock was exchanged for an equal par value of capital stock of the Katy when that company acquired the property of the Missouri Midland Railway Company. The final disposition of the bonds was not determined.

The Kansas City & Pacific Railroad Company
Introductory

The Kansas City & Pacific Railroad Company was incorporated July 24, 1886, in the State of Kansas. No accounting records of The Kansas City & Pacific Railroad Company were obtained. Therefore, no information can be given from its accounts regarding its financial dealings, corporate operations, or investments. However, certain data given below were obtained from its minute books and from the records of the Katy. The Kansas City & Pacific Railroad Company was controlled on November 24, 1899, the date of consolidation, by the Southwestern Coal and Improvement Company through ownership of a majority of its outstanding capital stock. The Southwestern Coal and Improvement Company was controlled by the Katy through stock ownership. On the other hand, the records reviewed do not indicate that The Kansas City & Pacific Railroad Company controlled any common-carrier corporation.

The property of The Kansas City & Pacific Railroad Company was operated by its own organization from the date of acquirement thereof to July 7, 1889. From that date to November 24, 1899, it was operated by the receivers of the Katy, and from the latter date to date of consolidation by the Katy. The railroad owned by The Kansas City & Pacific Railroad Company on the date of consolidation amounted to 130 miles. It consisted of a single-track, standard-gage, steam railroad, extending from Paola, Kans., to a point in Indian Territory about five miles south of Coffeyville, Kans.

Development of Fixed Physical Property

Of the 130 miles of road owned by The Kansas City & Pacific Railroad Company on the date of consolidation, it had acquired 31.25 miles from the Parsons and Pacific Railroad Company and 98.75 miles by construction. The construction work was done in part by the International Construction Company and the Cherokee Construction Company, and in part by Eddy and Cross, receivers of the Katy. Further details with respect to the development of this property are given in the chapter on development of fixed physical property in the report on the Katy.

Parsons and Pacific Railroad Company
The Parsons and Pacific Railroad Company was incorporated December 16, 1885, in the State of Kansas. No accounting records of the Parsons and Pacific Railroad Company were obtained. Therefore, no information can be given from its accounts regarding its financial dealings, corporate operations, or investments. However, certain data given below were obtained from the records of The Kansas City & Pacific Railroad Company. The records reviewed do not indicate whether the Parsons and Pacific Railroad Company was controlled by any individual or corporation on July 27, 1887, the date of sale, or, on the other hand, whether it then controlled any common-carrier corporation.

The Parsons and Pacific Railroad Company owned on date of sale approximately 31.25 miles of railroad, extending from Parsons to Coffeyville, Kans. The records reviewed do not indicate the manner in which the property was acquired.

The Parsons and Pacific Railroad Company had securities outstanding on date of sale as follows: Capital stock. $625,000 First-mortgage 30-year 6 per cent bonds. 500,000 [Total.] 1,125,000

In the sale of the property the capital stock was exchanged for an equal par value of capital stock of the successor and the bonds were assumed by the successor.

Kansas City, Eldorado & Southern Railway Company
The Kansas City, Eldorado & Southern Railway Company was incorporated June 28, 1892, in the State of Missouri. No accounting records of the Kansas City, Eldorado & Southern Railway Company were obtained. Therefore, no information can be given from its accounts regarding its financial dealings, corporate operations, or investments. However, certain data given below were obtained from its minute book and from records of the Katy. The Kansas City, Eldorado & Southern Railway Company was controlled on October 23, 1899, the date of sale, by Otto H. Miller of Cleveland, Ohio, through ownership of its entire outstanding capital stock. On the other hand, the records reviewed do not indicate that this company then controlled any common-carrier corporation.

The property of the Kansas City, Eldorado & Southern Railway Company was operated by its own organization from the date it was placed in operation to date of sale. The railroad owned by the Kansas City, Eldorado & Southern Railway Company on date of sale consisted of a single-track, standard-gage, steam railroad, extending from Walker to Eldorado Springs, Mo., 14.25 miles, which had been acquired by construction during 1898 and 1899. The construction work was performed by the Middle States Construction Company, contractors.

In the deed of the Kansas City, Eldorado & Southern Railway Company, dated October 23, 1899, conveying its property to Otto H. Miller, it is stated that the company had outstanding on that date $231,000 par value of capital stock and $231,000 par value of bonds. The capital stock was exchanged for an equal par value of capital stock of the Katy when that company acquired the property of the Kansas City, Eldorado & Southern Railway Company. The final disposition of the bonds was not determined.

The Missouri, Kansas and Eastern Railway Company
The Missouri, Kansas and Eastern Railway Company was incorporated February 10, 1892, in the State of Missouri. No accounting records of The Missouri, Kansas and Eastern Railway Company were obtained. Therefore, no information can be given from its accounts regarding its financial dealings, corporate operations, or investments. However, certain data given below were obtained from its minute book and from the records of the Katy. The Missouri, Kansas and Eastern Railway Company conveyed all of its property, rights, and franchises, except its right to be a corporation, to the Katy on June 1, 1896, and by indenture filed April 27, 1897, the company was merged with the Katy.

The Missouri, Kansas and Eastern Railway Company was controlled on June 1, 1896, the date of sale, by The Southwestern Company, through ownership of its entire outstanding capital stock. The Southwestern Company was affiliated with the Katy through that company’s ownership of its capital stock, On the other hand, the records reviewed do not indicate that this company, itself, then controlled any common-carrier corporation.

The property of The Missouri, Kansas and Eastern Railway Company was operated under lease by the Katy from the date it was placed in operation to date of sale. The railroad owned by The Missouri, Kansas and Eastern Railway Company on date of sale consisted of a single-track, standard-gage, steam railroad, extending from New Franklin to Machens, Mo., 162.27 miles. Of this it had acquired 16 miles by purchase from The Southwestern Company and 146.27 miles by construction. The 16 miles of road, together with 55 miles of graded roadbed, purchased from The Southwestern Company, had been acquired by that company from J. H. Bethune and the American Construction Company, who had acquired it at a foreclosure sale May 10, 1890, from the Cleveland, St. Louis & Kansas City Railway Company.

The remainder of the road owned, 146.27 miles, was acquired by construction under a contract of March 5, 1892, made between The Missouri, Kansas and Eastern Railway Company and The Southwestern Company, contractors. This contract provided that The Missouri, Kansas and Eastern Railway Company should pay The Southwestern Company for constructing and equipping the line and for conveying the 16 miles of road and other property formerly owned by the Cleveland, St. Louis & Kansas City Railway Company, $4,319,000 par value of capital stock, $4,000,000 par value of first-mortgage bonds, and $500,000 par value of second-mortgage bonds.

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Cleveland, St. Louis & Kansas City Railway Company
The Cleveland, St. Louis & Kansas City Railway Company was incorporated March 26, 1888, in the State of Missouri. No accounting records of the Cleveland, St. Louis & Kansas City Railway Company were obtained. Therefore, no information can be given from its accounts regarding its financial dealings, corporate operations, or investments. However, certain data given below were obtained from the records of the Katy. The records reviewed do not indicate whether the Cleveland, St. Louis & Kansas City Railway Company was controlled by any individual or corporation on May 10, 1890, the date of sale, nor, on the other hand, whether it then controlled any common-carrier corporation.

The railroad owned by the Cleveland, St. Louis & Kansas City Railway Company, on date of sale, consisted of about 16 miles of track, with sidings, between St. Charles and Hamburg, Mo., about 20 miles of graded roadbed east of St. Charles and 35 miles of graded roadbed west of Hamburg, together with certain right of way, equipment, and miscellaneous lot of construction material. Of the 16 miles of completed road owned by the Cleveland, St. Louis & Kansas City Railway Company on date of sale, it had acquired about 10 miles from the Central Missouri Railway Company and 6 miles by completing construction begun by that company.

The entire property of this company was sold May 10, 1890, under foreclosure of contractor's lien, to J. H. Bethune, who purchased it for himself and the American Construction Company. The consideration named in sheriff's deed June 12, 1890, was $142,700. On March 5, 1892, Bethune and the American Construction Company conveyed the same described property to The Southwestern Company. The consideration named in the deed was $260,000.

Central Missouri Railway Company
The Central Missouri Railway Company was incorporated February 19, 1885, in the State of Missouri. No accounting records of the Central Missouri Railway Company were obtained. Therefore, no information can be given from its accounts regarding its financial dealings or investments. However, certain data given below were obtained from its deed to its successor and the records of the Katy. The Central Missouri Railway Company was controlled on March 31, 1888, the date of sale, by J. T. K. Hayward, of St. Louis, Mo., and his associates, through ownership of a majority of its outstanding capital stock. On the other hand, the records reviewed do not indicate that this company then controlled any common-carrier corporation.

The railroad owned by the Central Missouri Railway Company on date of sale consisted of about 10 miles of single-track, standard-gage, steam railroad between St. Charles and Hamburg, Mo., and a partially graded roadbed east of St. Charles and west of Hamburg, all of which had been acquired by construction. The line was still in the hands of the United Railway Improvement Company, contractors, on date of sale. In addition to the property described above, the Central Missouri Railway Company had acquired authority to construct bridges over the Missouri River at or near Arrow Rock, Mo., and St. Charles, Mo., originally granted by Congress to the Hannibal Southwestern Railway Company and to the St. Louis & Kansas City Short Line Railway Company.

The authorized capital stock of the Central Missouri Railway Company was $3,750,000 par value, divided into shares of $100 par value each. How much was actually issued and the considerations received therefor were not ascertainable from the records obtained. The Central Missouri Railway Company issued $250,000 par value of first-mortgage 40-year 5 per cent bonds, maturing June 1, 1927. The consideration received for these bonds when issued was not ascertainable from the records obtained. By the terms of the sale of the property to the Cleveland, St. Louis & Kansas City Railway Company, the latter company was to pay all the debts and liabilities, including advances made by the contractors and to assume the funded debt of the Central Missouri Railway Company.

The St. Louis & Kansas City Railway Company
The St. Louis & Kansas City Railway Company was incorporated March 4, 1895, in the State of Missouri. No accounting records of The St. Louis & Kansas City Railway Company were obtained. Therefore, no information can be given from its accounts regarding its financial dealings, or investments. However, certain data given below were obtained from its minute book, contracts, and from the records of the Katy. The St. Louis & Kansas City Railway Company conveyed all of its property, rights, and franchises, except its right to be a corporation, to the Katy on July 31, 1895, and by indenture of consolidation, filed April 24, 1897, the company was consolidated with the Katy. The St. Louis & Kansas City Railway Company was controlled on July 31, 1895, the date of sale, by The Southwestern Company through ownership of its entire outstanding capital stock. The Southwestern Company was affiliated with the Katy through that company's ownership of its capital stock. The railroad owned by The St. Louis & Kansas City Railway Company on date of sale consisted of an unfinished line then under construction, extending from Bryson to Holden, Mo., 32.39 miles. The construction work was performed by The Southwestern Company under an agreement of June 5, 1895. The road was completed about January 1, 1897.

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The Southwestern Mineral Railway Company
The Southwestern Mineral Railway Company was incorporated September 22, 1894, in the State of Kansas. No accounting records of The Southwestern Mineral Railway Company were obtained. Therefore, no information can be given from its accounts regarding its financial dealings, corporate operations, or investments. However, certain data given below were obtained from its minute book, contracts and records of the Katy. The Southwestern Mineral Railway Company conveyed all of its property, rights, and franchises except its right to be a corporation, to the Katy on November 23, 1894, and by indenture of consolidation filed July 13, 1896, the company was consolidated with the Katy.

The Southwestern Mineral Railway Company was controlled on November 23, 1894, the date of sale, by John A. James, contractor, through ownership of its entire capital stock except directors' qualifying shares. The records reviewed indicate that on July 13, 1896, the date of consolidation, it was controlled by The Southwestern Company through stock ownership. The Southwestern Company was affiliated with the Katy through that company's ownership of its capital stock. On the other hand, the records reviewed do not indicate that The Southwestern Mineral Railway Company controlled any common-carrier corporation.

The property of the company was operated by The Southwestern Company from date of its completion to May 1, 1895, on which date it was turned over to the Katy. The railroad of The Southwestern Mineral Railway Company was in course of construction on date of sale. When completed it consisted of a single-track, standard-gage railroad, extending from Cherokee Junction to Mineral, Kans., about 17 miles. The entire road owned by the company on date of sale had been acquired by construction under a contract of October 30, 1894, made with John A. James, contractor.

This contract provided that The Southwestern Mineral Railway Company in consideration for construction of its road would issue to the contractor its entire authorized capital stock, except directors' qualifying shares, and also first-mortgage bonds at the rate of $20,000 par value per mile of road completed. It was specified in the contract that about 16 miles of road were to be constructed, but that the contractor when called upon would complete construction of the company's proposed road to Joplin, Mo., for the consideration only of $20,000 per mile payable in bonds.

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Hannibal and Central Missouri Rail Road Company
The Hannibal and Central Missouri Rail Road Company was incorporated February 13, 1867, in the State of Missouri. No accounting records of the Hannibal and Central Missouri Rail Road Company were obtained. Therefore, no information can be given from its accounts regarding its financial dealings, corporate operations, or investments. However, certain data given below were obtained from the records of the Wabash Railway Company and from records and other information in possession of the Katy. The Hannibal and Central Missouri Rail Road Company was controlled on June 1, 1873, the date of sale, by the Land Grant Railway and Trust Company, through ownership of its entire outstanding capital stock. On the other hand, the records reviewed do not indicate that this company then controlled any common-carrier corporation.

The property of the Hannibal and Central Missouri Rail Road Company was operated by The Toledo, Wabash & Western Railway Company, a predecessor of the Wabash Railway Company, as lessee, from the date of its completion to date of sale. The railroad owned by the Hannibal and Central Missouri Rail Road company on date of sale consisted of a single-track, standard-gage, steam railroad, extending from Hannibal to Moberly, Mo., 70 miles. The entire road owned by the Hannibal and Central Missouri Rail Road Company on date of sale had been acquired by construction during 1871-1872.

The records of The Toledo, Wabash & Western Railway Company indicate that it made certain advances to enable the Hannibal and Central Missouri Rail Road Company to complete its construction and equip the road, and upon completion The Toledo, Wabash & Western Railway Company took over the property for operation. The amount of capital stock actually issued or the amount of nonnegotiable debt actually incurred and the considerations received therefor were not ascertainable from the records obtained.

The Hannibal and Central Missouri Rail Road Company issued $768,000 par value of first-mortgage 7 per cent bonds, dated May 1, 1870, due May 1, 1890, and $32,000 par value of second-mortgage 7 per cent bonds, dated May 1. 1872, due May 1, 1892. The considerations received for these bonds when issued were not ascertainable from the records obtained. In the purchase of the property of the Hannibal and Central Missouri Rail Road Company, the Katy assumed the above bonds.

Tebo and Neosho Railroad Company
The Tebo and Neosho Railroad Company was incorporated January 16, 1860, in the State of Missouri. No accounting records of the Tebo and Neosho Railroad Company were obtained. Therefore, no information can be given from its accounts regarding its financial dealings, corporate operations, or investments. However, certain information given below was obtained from agreements, deeds, and records of the Katy. The Tebo and Neosho Railroad Company was controlled on May 23, 1872, the date of sale, by the Katy through an agreement for exchange of stock and assumption of all liabilities. On the other hand, the records reviewed do not indicate that this company then controlled any common-carrier corporation.

The railroad owned by the Tebo and Neosho Railroad Company on date of sale amounted to 72.00 miles. It consisted of a single-track, standard-gage, steam railroad, extending from Sedalia to Moberly, Mo. In addition to the above this company had owned 110.50 miles of road, extending from a point on the Missouri-Kansas State line near Fort Scott, Kans., to Sedalia, Mo., which it sold on October 11, 1870, to the Katy. The entire 182.50 miles had been acquired by construction. The records of the Katy indicate that the construction work was performed by the Land Grant Railway and Trust Company, which was affiliated with the Katy.

The amount of capital stock of the Tebo and Neosho Railroad Company, authorized at the time of incorporation, was $5,000,000 par value divided into shares of $100 par value each. How much was actually issued and the considerations received therefor were not ascertainable from the records obtained. The records of the Katy indicate that some of the capital stock was issued in exchange for bonds issued by various counties, cities, and towns. In the sale of the 110.50 miles of road to the Katy $3,657,500 par value of outstanding capital stock of the Tebo and Neosho Railroad Company was exchanged for an equal par value of capital stock of the Katy. In the sale of the remaining property to the Katy it was stated in the deed that the Katy would issue one share of its capital stock for each 10 shares of Tebo and Neosho Railroad Company then outstanding. In acquiring the property the Katy issued $2,710,000 par value of its capital stock, but to what extent this stock replaced capital stock of the Tebo and Neosho Railroad Company was not ascertainable from the records obtained.

The Tebo and Neosho Railroad Company issued $1,991,000 par value of first mortgage 7 per cent bonds and $1,440,000 par value of first-mortgage 7 per cent northeast extension bonds. The considerations received for these bonds when issued were not ascertainable from the records obtained. In the sales of the property, these bonds were assumed by the Katy.

Saint Louis & Santa Fe Railroad Company, Missouri Division
The Saint Louis & Santa Fe Railroad Company, Missouri Division, was incorporated April 20, 1869, in the State of Missouri. No accounting records of the Saint Louis & Santa Fe Railroad Company, Missouri Division, were obtained. Therefore, no information can be given from its accounts regarding its financial dealings, corporate operations, or investments. However, certain data given below were obtained from records and other information in possession of the Katy. The records reviewed did not indicate that the Saint Louis & Santa Fe Railroad Company, Missouri Division, was controlled by any individual or corporation on May 29, 1872, the date of sale, nor, on the other hand, whether it then controlled any common-carrier corporation.

The railroad owned by the Saint Louis & Santa Fe Railroad Company, Missouri Division, on date of sale, consisted of a single-track, standard-gage, steam railroad, extending from Holden, westerly to the Missouri-Kansas State line, about 38 miles. The entire road owned by the Saint Louis & Santa Fe Railroad Company, Missouri Division, on date of sale had been acquired by construction during 1871.

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Neosho Valley and Holden Railway Company
The Neosho Valley and Holden Railway Company was incorporated May 7, 1870, in the State of Kansas. On the same date the Neosho Valley and Holden Railway Company entered into an agreement providing for the consolidation and merger of the company with the Katy which was done. The Neosho Valley and Holden Railway Company did not construct any railroad.

Labette and Sedalia Railway Company
The Labette and Sedalia Railway Company was incorporated May 7, 1870, in the State of Kansas. On the same date the Labette and Sedalia Railway Company entered into an agreement providing for the consolidation and merger of the company with the Katy which was done. The Labette and Sedalia Railway Company did not construct any railroad.

Missouri, Kansas & Texas Terminal Company of Kansas City
The Missouri, Kansas & Texas Terminal Company of Kansas City was incorporated April 26, 1905, in the State of Missouri. The Missouri, Kansas & Texas Terminal Company of Kansas City was controlled on April 6, 1906, the date its property was conveyed, by the Katy through ownership of its entire capital stock except directors' shares. On the other hand, the records reviewed do not indicate that this company then controlled any common-carrier corporation.

The property of this company was placed in operation April 1, 1907, after it was sold to the Katy. The railroad property of this company on the date of its sale consisted wholly of terminal tracks and facilities located in or adjacent to Kansas City, Mo. This company was caused to be incorporated in the interest of the Katy. Since the sale of all of its physical property to the Katy the latter has maintained its corporate existence.

The Missouri, Kansas & Texas Terminal Company of Kansas City acquired certain lands in Kansas City, Mo., and constructed tracks and terminal facilities thereon, during the years 1905 and 1906, all of which property was sold to the Katy, being transferred by deed dated April 5, 1906.