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

Interstate Commerce Commission, Valuation Reports, Volume 34

Location and General Description of Property
The railroad of The Missouri, Kansas and Texas Railway Company of Texas, herein called the Katy of Texas, is a standard-gage steam railroad, located in the States of Texas and Louisiana. It is single-track, except for 14.371 miles of double track. The owned mileage of the company is situated entirely within the State of Texas. The principal main lines extend from the Red River, via Denison, Greenville, and Dallas, southerly to Smithville, thence easterly to Houston. Galveston is reached by means of trackage rights from Houston, 50 miles. Other important main lines extend from Fort Worth to Hillsboro, Granger to Austin, and San Marcos to San Antonio. The principal branch lines extend from Denison to Gainesville, McKinney to the Texas-Louisiana State line, Greenville to Mineola, Denton to Dallas, San Marcos to Smithville, and Trinity to Colmesneil. The latter line does not connect with any other part of the road owned. The Katy of Texas also uses under trackage rights portions of other railroads to connect its owned lines between Whitesboro and Fort Worth, 71.18 miles, and between Austin and San Marcos, 29.64 miles. Shreveport, La., is served by means of tracks leased from another carrier for sole operation.

Details with respect to the ownership and use of the principal freight and passenger terminals used by the Katy of Texas will be found in Appendix 2.

The Katy of Texas wholly owns 1,115.645 miles of road and jointly owns with another carrier 0.353 undivided mile of road. It also wholly uses 508.086 miles of road owned by other companies, of which 17.007 miles, from the Texas-Louisiana State line (near Waskom) to Shreveport, La., is owned by the Vicksburg, Shreveport and Pacific Railway Company. The road wholly owned but not used by the Katy of Texas consists of 1.087 miles of main-line track through the union terminal at Dallas, Tex., which is leased to The Union Terminal Co. (Dallas, Tex.).

There is given below a short description of the properties of the lessor companies, included in this report, which own the remaining 491.079 miles of road leased from other companies. They are standard-gage, single-track, steam operated railroads and are used in their entirety by the Katy of Texas.

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The Katy of Texas wholly owns and uses 1,580.327 miles of all tracks, wholly owns but does not use 1.087 miles of all tracks, and wholly uses but does not own 598.375 miles. These tracks, consisting of first main track, second main track, and yard tracks and sidings, are classified in the trackage table in Appendix 1. In addition, the Katy of Texas jointly owns and uses with other carriers 0.969 undivided mile of all tracks and jointly uses but does not own 3.038 undivided miles of all tracks which are jointly owned by its lessors with other carriers, as shown in the trackage table in Appendix 1.

Introductory
The Katy of Texas is a corporation of the State of Texas, having its principal office at Dallas, Tex.

The Katy of Texas is controlled by the individuals composing its board of directors, who are nominated by the Missouri, Kansas & Texas Railway Company.

The United States Trust Company of New York, trustee, holds the stock of the Katy of Texas for the benefit of the stockholders and bondholders of the Missouri, Kansas & Texas Railway Company, and gives its irrevocable proxy to vote the stock, to the individuals nominated by the Missouri, Kansas & Texas Railway Company.

On the other hand, the Katy of Texas does not independently control any other corporation. It jointly controls, with seven other companies, the Union Terminal Company, of Dallas, Tex.

The property of the Katy of Texas was operated by its own organization from January 1, 1892, to September 27, 1915, by a receiver from September 28, 1915, to December 31, 1917, and by the United States Railroad Administration from January 1, 1918, to date of valuation.

At date of valuation the receivership had not been terminated.

Corporate History
The Katy of Texas was incorporated October 28, 1891, under the general laws of the State of Texas, for the purpose of acquiring and operating the railroad properties of the Missouri, Kansas & Texas Railway Company located in the State of Texas, and for the construction or acquisition of other railroad property within the State of Texas.

Prior to the incorporation of the Katy of Texas, the Missouri, Kansas & Texas Railway Company, under authority of an act of August 2, 1870, of the Texas Legislature, had acquired on various dates, and was operating property formerly owned by certain Texas corporations. It also had constructed in Texas under its own rights certain other mileage. The corporations referred to, the dates acquired, the mileage owned by each, and that constructed by the Missouri, Kansas & Texas Railway Company under its own rights, are shown below.

The right of the Missouri, Kansas & Texas Railway Company to own property in the State of Texas was contested, sometime after the sales of the first companies in 1881, by the State of Texas through legal proceedings in the case of the East Line and Red River Railroad Company with the result that the Supreme Court of Texas, on February 17, 1890, upheld the decree declaring the charter of the East Line and Red River Railroad Company forfeited.

While two of these companies were not deeded to the Missouri, Kansas & Texas Railway Company until 1891, after the date of the court decision, those two, as well as all the others, excepting the East Line and Red River Railroad Company, were reconveyed by the Missouri, Kansas & Texas Railway Company to the Katy of Texas, which had been incorporated with authority to acquire all of the above described property in Texas. Further, each of the Texas corporations, excepting the East Line and Red River Railroad Company and the Missouri, Kansas and Texas Extension Railway Company, whose charter was not kept alive after the transfer of the property to the Missouri, Kansas & Texas Railway Company, made another deed conveying its property to the Katy of Texas. Most of these latter deeds were made in January, 1892.

Pursuant to the above purposes, the Katy of Texas acquired at its organization the property, rights, and franchises of eight of the nine companies originally deeded to the Missouri, Kansas & Texas Railway Company and 223.20 miles of the road constructed by the Missouri, Kansas & Texas Railway Company. The Katy of Texas, itself, and those corporations, together with their predecessors and other companies subsequently acquired, total 16 different corporations, of which two underwent a change of name, and comprise the line of corporate succession culminating in the Katy of Texas 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 wholly owned road of the Katy of Texas amounts to 1,115.645 miles, of which 206.35 miles were purchased direct from predecessor corporations, 724.45 miles were acquired from the Missouri, Kansas & Texas Railway Company, and 189.41 miles were constructed by the Katy of Texas. Subsequent line changes and remeasurements reduced the acquired and constructed mileage by 4.565 miles.

In the construction of 223.20 miles of road built in the State of Texas for the Missouri, Kansas & Texas Railway Company, included in the 724.45 miles acquired, the construction work was performed by the International Railway Improvement Company for securities issued, and in the construction of 189.41 miles of road built for the Katy of Texas, the construction work was performed by either the Southwestern Company, the Southwestern Coal & Improvement Company, or the Southwestern Development Company, affiliated companies which received the securities of the carriers mentioned in payment for the construction.

Of the 15 corporations that comprise the line of succession culminating in the Katy of Texas as at present constituted, one, the Trinity, Cameron and Western Railroad 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 of Texas 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. In addition to the above, the Katy of Texas jointly owns with the International and Great Northern Railway Company 0.353 mile of main track at Mineola, Tex.

Leased Railway Property
The Katy of Texas used on December 31, 1917, facilities owned by other companies, and other companies used facilities owned by the Katy of Texas 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:

Lessor Companies

 * Wichita Falls and Northwestern of Texas
 * Wichita Falls Railway
 * Wichita Falls and Wellington
 * Wichita Falls and Southern
 * Denison, Bonham and New Orleans
 * Beaumont and Great Northern
 * San Antonio Belt and Terminal
 * Texas Central

The Granger, Georgetown, Austin & San Antonio Railway Company
The Granger, Georgetown, Austin & San Antonio Railway Company was incorporated December 5, 1902, in the State of Texas. Only partial accounting records of The Granger, Georgetown, Austin & San Antonio Railway Company were obtained. Therefore, only partial information can be given from its accounts regarding its financial dealings, corporate operations, or investments.

The records reviewed indicate that The Granger, Georgetown, Austin & San Antonio Railway Company was controlled on May 13, 1903, the date of sale, jointly by A. A. Allen and the Southwestern Development Company, through ownership of its capital stock. A. A. Allen was general manager of the Missouri, Kansas & Texas Railway Company, and the Southwestern Development Company was affiliated with the latter company through stock ownership. On the other hand, this company did not control any common-carrier corporation.

The Granger, Georgetown, Austin & San Antonio Railway Company owned on the date of sale approximately 15.5 miles of single-track railroad, extending from Granger to Georgetown, Tex., which it had acquired in an uncompleted state by purchase from Thomas S. Miller, who had acquired it at sheriff's sale from the Georgetown and Granger Rail Road Company.

[...]

The Granger, Georgetown, Austin & San Antonio Railway Company did not operate the property while it was in its possession.

The company recorded the receipt of $50,198.76 cash, of which $50,000 was received for capital stock at par value and $198.76 was interest received on bank balances. The records reviewed indicate that of the cash received $39,897.34 was paid to the Southwestern Development Company in liquidation of advances for construction and the balance of $10,301.42 cash was turned back to the South western Development Company.

Georgetown and Granger Rail Road Company
The Georgetown and Granger Rail Road Company was incorporated December 13, 1890, in the State of Texas. The accounting records of the company were not 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 records in possession of the Katy of Texas and the Missouri, Kansas & Texas Railway Company.

The records reviewed do not indicate whether the Georgetown and Granger Rail Road Company was controlled by any individual or corporation on December 22, 1902. However, it was purchased by Thomas S. Miller at sheriff's sale December 2, 1902, and by him deeded to The Granger, Georgetown, Austin & San Antonio Railway Company on December 22, 1902. On the other hand, the records reviewed do not indicate that the Georgetown and Granger Rail Road Company controlled any common-carrier corporation.

The Georgetown and Granger Rail Road Company owned on the date of sale, approximately 15.50 miles of partially constructed railroad, extending from Granger to Georgetown, Tex. This property was all acquired by construction performed under the company’s own direction.

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Trinity, Cameron and Western Railroad Company
The Trinity, Cameron and Western Railroad Company was incorporated January 18, 1892, in the State of Texas. The accounting records of the company were not obtained. Therefore, no information can be given from its accounts regarding its financial dealings, corporate operations, or investments. The only reference found to this company was that all of the right, title, or interest that it had in the Georgetown and Granger Rail Road Company was included in the sheriff's deed of December 2, 1902, transferring the property of the Georgetown and Granger Rail Road Company to Thomas S. Miller.

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 Missouri, Kansas & Texas Railway Company.

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. On the other hand, the records reviewed do not indicate that this company controlled any common-carrier corporation. The property of this company was operated by the Missouri, Kansas & Texas Railway Company from the date of its completion to January 1, 1892, and that part of it in the Indian Territory until May 13, 1903, the date of sale. From January 1, 1892, to the date of sale, that part of the property in Texas was operated by the Katy of Texas.

The railroad owned by the Denison & Washita Valley Railway Company on the 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 Missouri, Kansas & Texas Railway Company May 17, 1893, and 11.71 miles by construction. The construction was performed under contract by W. B. Munson, then president of the Denison & Washita Valley Railway Company, and by the Southwestern Coal & Improvement Company. Further details with respect to the construction of that part of this property sold to the Katy of Texas are given in the chapter on development of fixed physical property in the report on that company.

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

Main line | Spur."

tracks Miles Miles The Katy of Texas, Warner to Ray, Tex-- 6.40 15.15 Missouri, Kansas & Texas Railway Company, Atoka to Lehi 9.68 Texas & Oklahoma Railroad Company, igh to Coalgate, I.T--- 5.31 10.14 Total.--- 21.39 25.29

The Sherman, Shreveport & Southern Railway Company
Introductory

The Sherman, Shreveport & Southern Railway Company was incorporated February 28, 1893, in the State of Texas.

The accounting records of The Sherman, Shreveport & Southern Railway Company were of such fragmentary nature that only partial information could be obtained from them regarding its financial dealings, corporate operations, or investments. However, certain data given below were obtained from its annual reports to the Railroad Commission of the State of Texas and other records in possession of the Katy of Texas.

The Sherman, Shreveport & Southern Railway Company was controlled on May 6, 1901, the date of sale, by the Central Trust Company of New York, holder of its entire outstanding stock in trust for the benefit of the stockholders and bondholders of the Missouri, Kansas & Texas Railway Company. On the other hand, the records reviewed do not indicate that this company controlled any common-carrier corporation.

The property of this company was operated by its own organization from February 1, 1893, as of which date it was purchased, to the date of sale. The railroad operated by The Sherman, Shreveport & Southern Railway Company was a single-track, standard-gage, steam railroad, located in Texas and Louisiana, aggregating about 202 miles. The owned mileage amounted to 184.45 miles extending from McKinney to Waskom, Tex.

The mileage operated under trackage rights amounted to about 18 miles. extending from Waskom, Tex., to Shreveport, La.

Development of Fixed Physical Property

Of the 184.45 miles of road owned by The Sherman, Shreveport & Southern Railway Company on the date of sale, it had acquired 155 miles from the East Line and Red River Railroad Company and 29.45 miles by construction. Details with respect to the construction of this property are given in the chapter on development of fixed physical property of the Katy of Texas.

East Line and Red River Railroad Company
Introductory

The East Line and Red River Railroad Company was incorporated March 22, 1871, in the State of Texas.

The accounting records of the East Line and Red River Railroad Company were discontinued as of November 28, 1881. Therefore, no information can be given from its accounts regarding its financial dealings, corporate operations, or investments for the period after November 28, 1881. However, certain data given below other than those found in its accounts were obtained from records of the Katy of Texas, the Missouri, Kansas & Texas Railway Company, and other information in possession of the latter.

The East Line and Red River Railroad Company was controlled by the Missouri, Kansas & Texas Railway Company May 25, 1889, the date its charter was declared forfeited by the State of Texas. From that time until the sale of the property to The Sherman, Shreveport & Southern Railway Company it was in the hands of receivers. On the other hand, the records reviewed did not indicate that the East Line and Red River Railroad Company controlled any common-carrier corporation.

The property of the East Line and Red River Railroad Company was operated by its own organization from December 1, 1876, to November 28, 1881; by the Missouri Pacific Railway Company, as lessee of the property of the Missouri, Kansas & Texas Railway Company, from November 28, 1881, to October 31, 1888; by Federal court receivers of both the Missouri, Kansas & Texas Railway Company and this company from November 1, 1888, to April 13, 1891; and by the receiver appointed by a Texas court from April 13, 1891, to January 31, 1893, the date of sale to The Sherman, Shreveport & Southern Railway Company.

The railroad owned by the East Line and Red River Railroad Company on the date of its sale to The Sherman, Shreveport & Southern Railway Company amounted to 155 miles. It consisted of a single-track, standard-gage, steam railroad, extending from McKinney to Jefferson, Tex.

The East Line and Red River Railroad Company originally conveyed its property to the Missouri, Kansas & Texas Railway Company on November 28, 1881. The State of Texas later protested this sale through the courts with the result that the Supreme Court of Texas on February 17, 1890, upheld the decree declaring the charter of the East Line and Red River Railroad Company forfeited. On April 13, 1891, the receivership was transferred from the Federal court to the Texas State court.

Development of Fixed Physical Property

The entire 155 miles of road operated by the receiver of the East Line and Red River Railroad Company on the date of foreclosure sale had been acquired by construction. About 124 miles of the road between Jefferson and Greenville was originally constructed as a narrow-gage road. It was constructed by several contractors, none of whom appears to have been affiliated with the company. This section of road was changed to standard gage in 1892, under a contract between the receiver and The Southwestern Company, a West Virginia corporation affiliated with the Missouri, Kansas & Texas Railway Company.

The extension of 31 miles, Greenville to McKinney, was constructed as a standard-gage road, under a contract with the International Railway Improvement Company. 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 of Texas.

Dallas and Waco Railway Company
Introductory

The Dallas and Waco Railway Company was incorporated December 23, 1886, in the State of Texas.

The accounting records of the Dallas and Waco Railway Company were not 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 of the Katy of Texas, the Missouri Kansas & Texas Railway Company, and other information in possession of the latter.

The Dallas and Waco Railway Company was controlled on November 12, 1891, the date of sale to the Missouri, Kansas & Texas Railway Company, by the Southwestern Company through ownership of its capital stock. It was indirectly controlled on that date by the Missouri, Kansas & Texas Railway Company through its ownership of the stock of the Southwestern Company and its guarantee of the bonds of this company.

The property of the Dallas and Waco Railway Company was operated by the receivers of the Missouri, Kansas & Texas Railway Company, and by that company itself from the date of its completion to November 12, 1891.

The railroad owned by the Dallas and Waco Railway Company on date of sale amounted to 67 miles. It consisted of a single-track, standard-gage, steam railroad extending from Dallas to Hillsboro, Tex.

The Dallas and Waco Railway Company was one of the companies that deeded their properties to the Missouri, Kansas & Texas Railway Company, which subsequently deeded them to the Katy of Texas, as heretofore explained. The deed by the Dallas and Waco Railway Company to the Missouri, Kansas & Texas Railway Company was made November 12, 1891. The deed from the latter to the Katy of Texas was dated November 18, 1891, and the deed of the Dallas and Waco Railway Company to the Katy of Texas was made January 19, 1892.

Development of Fixed Physical Property

The entire road owned by the Dallas and Waco Railway Company on date of sale was acquired by construction during the period 1887 to 1891. Part of the road was constructed by the Missouri Pacific Railway Company, acting for the contractor, Guy Phillips, and part by the receivers of the Missouri, Kansas & Texas Railway Company. The dates of completion of the various parts of the road were not indicated by the records reviewed.

The Sherman, Denison & Dallas Railway Company
Introductory

The Sherman, Denison & Dallas Railway Company was incorporated March 20, 1890, in the State of Texas.

The accounting records of The Sherman, Denison & Dallas Railway Company were not 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 of the Katy of Texas, the Missouri, Kansas & Texas Railway Company, and other information in possession of the latter.

The Sherman, Denison & Dallas Railway Company was controlled on November 11, 1891, the date of sale, by the Missouri, Kansas & Texas Railway Company through ownership of its entire outstanding capital stock. On the other hand, the records reviewed do not indicate that this company controlled any common-carrier corporation.

The property of The Sherman, Denison & Dallas Railway Company was operated under lease by the receivers of the Missouri, Kansas & Texas Railway Company from the date of its completion to June 30, 1891. From July 1, 1891, to November 11, 1891, it was operated by the Missouri, Kansas & Texas Railway Company.

The railroad owned by The Sherman, Denison & Dallas Railway Company on date of sale amounted to 10 miles. It consisted of a single-track, standard gage, steam railroad, extending from Denison to Sherman, Tex.

The Sherman, Denison & Dallas Railway Company was one of the companies that deeded their properties to the Missouri, Kansas & Texas Railway Company, which subsequently deeded them to the Katy of Texas as heretofore explained. The deed by The Sherman, Denison & Dallas Railway Company to the Missouri, Kansas & Texas Railway Company was made November 11, 1891. The deed from the latter to the Katy of Texas was dated November 18, 1891, and the deed of The Sherman, Denison & Dallas Railway Company to the Katy of Texas was made January 26, 1892.

Development of Fixed Physical Property

The entire road owned by The Sherman, Denison & Dallas Railway Company on date of sale was acquired by construction. 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 of Texas.

The Taylor, Bastrop and Houston Railway Company, originally named Bastrop and Taylor Railway Company
Introductory

The Taylor, Bastrop and Houston Railway Company was incorporated April 26, 1886, in the State of Texas, as the Bastrop and Taylor Railway Company. The name was changed October 27, 1886.

The accounting records of The Taylor, Bastrop and Houston Railway Company were not 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 of the Katy of Texas, the Missouri, Kansas & Texas Railway Company, and other information in possession of the latter.

The Taylor, Bastrop and Houston Railway Company was controlled on December 2, 1886, the date of sale, by Guy Phillips and associates through ownership of a majority of its outstanding capital stock. On the other hand, the records reviewed did not indicate that this company controlled any common-carrier corporation.

The property of The Taylor, Bastrop and Houston Railway Company was sold to the Missouri, Kansas & Texas Railway Company before November, 1887, the date of its completion.

The railroad owned by The Taylor, Bastrop and Houston Railway Company amounted to 102.75 miles. It consisted of a single-track, standard-gage, steam railroad, extending from Taylor to Boggy Tank, Tex., 86.75 miles, and from Lockhart to San Marcos, Tex., 16 miles.

The Taylor, Bastrop and Houston Railway Company was one of the companies that deeded their properties to the Missouri, Kansas & Texas Railway Company, which subsequently deeded them to the Katy of Texas, as heretofore explained. The deed by The Taylor, Bastrop and Houston Railway Company to the Missouri, Kansas & Texas Railway Company was made December 2, 1886. The deed from the latter to the Katy of Texas was dated November 18, 1891, and the deed of The Taylor, Bastrop and Houston Railway Company to the Katy of Texas was made January 29, 1892.

Development of Fixed Physical Property

The entire road of The Taylor, Bastrop and Houston Railway Company was constructed during the period November, 1886, to November, 1887, but it was sold before completion. The records reviewed indicate that the road was constructed by the Missouri Pacific Railway Company, acting for the contractor, Guy Phillips. 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 of Texas.

The Gainesville, Henrietta and Western Railway Company
Introductory

The Gainesville, Henrietta and Western Railway Company was incorporated July 23, 1886, in the State of Texas.

The accounting records of The Gainesville, Henrietta and Western Railway Company were not 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 of the Katy of Texas, the Missouri, Kansas & Texas Railway Company, and other information in possession of the latter.

The Gainesville, Henrietta and Western Railway Company was controlled on January 25, 1887, the date of sale, by Guy Phillips and associates 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 property of The Gainesville, Henrietta and Western Railway Company was operated by the Missouri Pacific Railway Company, as lessee of the property of the Missouri, Kansas & Texas Railway Company, from April 30, 1887, the date of its completion to October 31, 1888. During part of November, 1888, the date the property was sold to the Missouri, Kansas & Texas Railway Company, it was operated by the receivers of that company.

The railroad owned by The Gainesville, Henrietta and Western Railway Company amounted to 70 miles. It consisted of a single-track, standard-gage, steam railroad, extending from Gainesville to Henrietta, Tex. The Gainesville, Henrietta and Western Railway Company was one of the companies that deeded their properties to the Missouri, Kansas & Texas Railway Company, which subsequently deeded them to the Katy of Texas as heretofore explained. The deed by The Gainesville, Henrietta and Western Railway Company to the Missouri, Kansas & Texas Railway Company was made January 25, 1887. The deed from the latter to the Katy of Texas was dated November 18, 1891, and the deed of The Gainesville, Henrietta and Western Railway Company to the Katy of Texas was made January 27, 1892.

Development of Fixed Physical Property

The entire road of The Gainesville, Henrietta and Western Railway Company was acquired by construction during the early part of 1887. The records reviewed indicate that the road was constructed by the Missouri Pacific Railway Company acting for the contractor, Guy Phillips. 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 of Texas.

Dallas and Greenville Railway Company
Introductory

The Dallas and Greenville Railway Company was incorporated February 15, 1886, in the State of Texas.

The accounting records of the Dallas and Greenville Railway Company were not 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 of the Katy of Texas, the Missouri, Kansas & Texas Railway Company, and other information in possession of the latter.

The Dallas and Greenville Railway Company was controlled on December 2, 1886, the date of sale, by Guy Phillips and associates 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 property of the Dallas and Greenville Railway Company was sold to the Missouri, Kansas & Texas Railway Company, before December 18, 1886, the date of its completion.

The railroad owned by the Dallas and Greenville Railway Company amounted to 52.165 miles. It consisted of a single-track, standard-gage, steam railroad, extending from Dallas to Greenville, Tex.

The Dallas and Greenville Railway Company was one of the companies that deeded their properties to the Missouri, Kansas & Texas Railway Company, which subsequently deeded them to the Katy of Texas, as heretofore explained. The deed by the Dallas and Greenville Railway Company to the Missouri, Kansas & Texas Railway Company was made December 2, 1886. The deed from the latter to the Katy of Texas was dated November 18, 1891, and the deed of the Dallas and Greenville Railway Company to the Katy of Texas was made January 19, 1892.

Development of Fixed Physical Property

The entire road of the Dallas and Greenville Railway Company was acquired by construction completed December 18, 1886. The records reviewed indicate that the road was constructed by the Missouri Pacific Railway Company, acting for the contractor, Guy Phillips. 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 of Texas.

Trinity and Sabine Railway Company
Introductory

The Trinity and Sabine Railway Company was incorporated September 28, 1881, in the State of Texas.

The accounting records of the Trinity and Sabine Railway Company were not 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 Missouri Pacific Railway Company, the Katy of Texas, the Missouri, Kansas & Texas Railway Company, and other information in possession of the latter.

The records reviewed do not indicate whether the Trinity and Sabine Railway Company was controlled by any individual or corporation on December 9, 1882, the date of sale, nor, on the other hand, whether it then controlled any common-carrier corporation.

The property of the Trinity and Sabine Railway Company was sold to the Missouri, Kansas & Texas Railway Company prior to its completion in 1883, therefore, it was not operated during the period of this company's ownership. The railroad of the Trinity and Sabine Railway Company as of date of sale amounted to 67 miles.

The Trinity and Sabine Railway Company was one of the companies that deeded their properties to the Missouri, Kansas & Texas Railway Company, which subsequently deeded them to the Katy of Texas as heretofore explained. The deed by the Trinity and Sabine Railway Company to the Missouri, Kansas & Texas Railway Company was made December 9, 1882. The deed from the latter to the Katy of Texas was dated November 18, 1891, and the deed of the Trinity and Sabine Railway Company to the Katy of Texas was made January 30, 1892.

Development of Fixed Physical Property

The entire road of the Trinity and Sabine Railway Company was acquired by construction during 1881–1884. The records reviewed do not show who was employed as contractor in the construction of the first 38 miles. The remainder of the road, from Milepost 38 to Colmesneil, 29 miles, was constructed by the Missouri Pacific Railway Company, lessee of the Missouri, Kansas & Texas Railway Company. 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 of Texas.

Dallas and Wichita Railroad Company
Introductory

The Dallas and Wichita Railroad Company was incorporated December 2, 1871, in the State of Texas.

The accounting records of the Dallas and Wichita Railroad Company were not 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 of the Katy of Texas, the Texas and Pacific Railway Company, the Missouri, Kansas and Texas Railway Company, and other information in possession of the latter.

The records reviewed do not indicate whether the Dallas and Wichita Railroad Company was controlled by any individual or corporation on December 15, 1881, the date of sale, nor on the other hand, whether it then controlled any common-carrier corporation. The operation of the property of the Dallas and Wichita Railroad Company prior to December 15, 1881, cannot be definitely determined from available records.

The railroad owned by the Dallas and Wichita Railroad Company on date of sale amounted to 39 miles. It consisted of a single-track, standard-gage, steam railroad, extending from Dallas to Denton, Tex.

The Dallas and Wichita Railroad Company was one of the companies that first deeded their properties to the Missouri, Kansas & Texas Railroad Company which subsequently deeded them to the Katy of Texas, as heretofore explained. The deed of the Dallas and Wichita Railroad Company to the Missouri, Kansas & Texas Railway Company was made December 15, 1881. The deed from the latter to the Katy of Texas was made November 18, 1891. The deed of the Dallas and Wichita Railroad Company to the Katy of Texas was made January 19, 1892.

The Dallas and Wichita Railroad Company having defaulted in the payment of its obligations, a receiver was appointed in 1879.

In February, 1880, the Texas and Pacific Railway Company purchased the outstanding receiver's certificates and a majority of the outstanding bonds of the Dallas and Wichita Railroad Company, thereby acquiring control.

On May 4, 1880, the property, including the charter of the Dallas and Wichita Railroad Company, but excluding the land-grant certificates, were sold to representatives of the Texas and Pacific Railway Company and on July 16, 1880, they reorganized the Dallas and Wichita Railroad Company under its original charter.

Development of Fixed Physical Property

The entire road owned by the Dallas and Wichita Railroad Company on date of sale was acquired by construction. It is not known whether the construction work on the 20 miles of road between Dallas and Lewisville, completed in May, 1874, was performed by the forces of the Dallas and Wichita Railroad Company or by contract. The remainder of the road was constructed by the forces of the Texas and Pacific Railway Company. 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 of Texas.

Missouri, Kansas and Texas Extension Railway Company, originally named The Denison and Southeastern Railway Company
Introductory

The Missouri, Kansas and Texas Extension Railway Company was incorporated July 28, 1877, in the State of Texas, as The Denison and Southeastern Railway Company. The name was changed March 23, 1880.

The accounting records of the Missouri, Kansas and Texas Extension Railway Company were not 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 records of the Katy of Texas.

The Missouri, Kansas and Texas Extension Railway Company was directly controlled on November 26, 1881, the date of sale, by the Union Trust Company of New York, trustee, through its holding of the capital stock of the company under the terms of an agreement, dated January 1, 1880. Under the provisions of that agreement an indirect control of the Missouri, Kansas and Texas Extension Railway Company by the Missouri, Kansas & Texas Railway Company was accomplished. The agreement also provided among other things for the ultimate acquisition of the property of the Missouri, Kansas and Texas Extension Railway Company by the Missouri, Kansas & Texas Railway Company. On the other hand, the records reviewed do not indicate that this company controlled any common-carrier corporation.

The property of the Missouri, Kansas and Texas Extension Railway Company was operated by the Missouri, Kansas & Texas Railway Company as lessee from the date of its completion to November 30, 1880. From December 1, 1880, to November 26, 1881, it was operated by the Missouri Pacific Railway Company, as lessee of the property of the Missouri, Kansas & Texas Railway Company.

The railroad owned by the Missouri, Kansas and Texas Extension Railway Company on the date of sale amounted to 94 miles. It consisted of a single-track, standard-gage, steam railroad, extending from Denison to Gainesville, Tex., about 42 miles, and from Denison to Greenville, Tex., about 52 miles.

The Missouri, Kansas and Texas Extension Railway Company deeded its property to the Missouri, Kansas & Texas Railway Company on November 26, 1881, and that company conveyed it to the Katy of Texas November 18, 1891, under authority of a special act of the Legislature of the State of Texas, approved April 16, 1891.

Development of Fixed Physical Property

Of the 94 miles of road owned by the Missouri, Kansas and Texas Extension Railway Company on the date of its sale, it had acquired 42 miles from The Denison and Pacific Railway and 52 miles by construction. The construction work on about 20 miles of the road between Denison and Greenville was performed by John Scullin, a contractor, who, the records indicate, was not affiliated with the company. It is not known whether the remainder of the road was constructed by forces of the Missouri, Kansas and Texas Extension Railway Company or by contract. 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 of Texas.

The Denison and Pacific Railway
Introductory

The Denison and Pacific Railway was incorporated April 24, 1878, in the State of Texas.

The accounting records of The Denison and Pacific Railway were not 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 other information in possession of the Katy of Texas.

The records reviewed do not indicate whether The Denison and Pacific Railway was controlled by any individual or corporation on March 11, 1880, the date of sale, nor, on the other hand, whether it controlled any common-carrier corporation.

The property of The Denison and Pacific Railway was operated by its own organization from the date of the completion thereof to date of sale.

The road owned by The Denison and Pacific Railway on the date of sale amounted to 42 miles. It consisted of a single-track, standard-gage, steam railroad, extending from Denison to Gainesville, Tex.

Development of Fixed Physical Property

The entire road owned by The Denison and Pacific Railway on the date of sale was acquired by construction. It was constructed by the Southwestern Construction Company which was controlled by John Scullin and associates. 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 of Texas.