Wikipedia:WikiProject Trains/ICC valuations/Watertown and Sioux Falls Railway

Interstate Commerce Commission, Valuation Reports, Volume 125

Location and General Description of Property
The railroad of the Watertown and Sioux Falls Railway Company, hereinafter called the carrier, is a single-track standard-gauge steam railroad, located in eastern South Dakota. The main line extends northerly from Sioux Falls to Watertown, a distance of 101.790 miles. The carrier also owns 10.428 miles of yard tracks and sidings. Its road thus embraces 112.218 miles of all tracks wholly owned and used. In addition, the carrier jointly owns and uses with another carrier 0.253 undivided mile of sidings at Arlington, S. Dak., its portion based on ownership being 0.127 mile. The carrier is controlled by the Great Northern Railway Company and its railroad forms a part of the latter carrier's system.

Introductory
The carrier is a corporation of the State of South Dakota, having its principal office at Sioux Falls, S. Dak. Although it acquired title to its property on June 28, 1916, it did not commence recording the results of the operations thereof in its books until July 1, 1916. The carrier is controlled by the Great Northern Railway Company through ownership of its entire outstanding capital stock. On the other hand, the records reviewed do not indicate that the carrier itself controls any common-carrier corporation. The property of the carrier was operated by its own organization from July 1, 1916, to December 31, 1917. On January 1, 1918, its common-carrier property was taken over for operation by the United States Railroad Administration, which still operates it on date of valuation.

Corporate History
The carrier was incorporated June 24, 1916, under the general laws of the State of South Dakota, for the purpose of acquiring the property, rights, and franchises of The South Dakota Central Railway Company. The date of its organization was June 27, 1916. Pursuant to the above purpose, the carrier acquired by master's deed dated June 28, 1916, the property, rights, and franchises of The South Dakota Central Railway Company, which had been sold at foreclosure sale on June 12, 1916, to Charles O. Kalman, who designated the carrier as his assignee. The South Dakota Central Railway Company, the only predecessor of the carrier, was incorporated August 7, 1902, under the name of The Sioux Falls & Manitoba Railway Company, and its name was changed on December 30, 1903, to The South Dakota Central Railway Company.

Development of Fixed Physical Property
The owned mileage of the carrier, 101.790 miles, was all acquired by purchase through foreclosure from The South Dakota Central Railway Company. The years when the various portions of the line were constructed and the manner in which the carrier acquired the property are indicated in the following table. The South Dakota Central Railway Company during 1915 rebuilt about 2 miles of road north of Chester, S. Dak., and abandoned the original line at this point on account of drainage into Brant Lake. After the carrier purchased this property, it reconstructed and improved the road.

Leased Railway Property
The property of the carrier devoted to common-carrier purposes was taken over for operation by the United States Railroad Administration on January 1, 1918, and is so operated on date of valuation. The arrangements of the carrier with other carriers, in effect December 31, 1917, covering the use of joint facilities have been continued by the United States Railroad Administration during the period January 1, 1918, to date of valuation. The description of the property, the period and terms of use, and the accrued rentals charged or credited to income by the carrier or the United States Railroad Administration for the year ending on date of valuation are as follows: There are other facilities of minor importance, such as yard tracks and sidings, in which the carrier grants or receives joint use, that are not listed in this section. During the period January 1, 1918, to date of valuation the carrier has recorded accrued rental amounting to $25,669.74, as due from the United States Railroad Administration, for the use of its common-carrier property.

The South Dakota Central Railway Company, formerly named The Sioux Falls & Manitoba Railway Company
Introductory

The South Dakota Central Railway Company was originally incorporated as The Sioux Falls & Manitoba Railway Company under the general laws of South Dakota on August 7, 1902. The name was changed on December 30, 1903. Although the property of this company was conveyed to its successor by deed dated June 28, 1916, the accounts of the company and its receiver, for the results of corporate operations, continued to June 30, 1916, and other accounts were not closed until that date. The accounting data in this report, therefore, cover the period to June 30, 1916. The records reviewed do not indicate whether this company was controlled by any individual or corporation on June 12, 1916, the date of foreclosure sale, or, on the other hand, whether it then controlled any other common-carrier corporation.

The property of this company was operated by its own organization from July 1, 1904, the date its first section of road was placed in operation, until April 1, 1915. From that date the property was operated by a receiver until it was surrendered to the carrier at midnight, June 30, 1916. The railroad of this company consisted of a single-track standard-gauge steam railroad, extending from Sioux Falls to Watertown, S. Dak., a distance of 103 miles.

Development of Fixed Physical Property

The 103 miles of railroad owned by The South Dakota Central Railway Company on date of its sale was all acquired by construction. The construction work was performed by numerous contractors, none of whom appear to have been affiliated with the company. Further details with respect to the construction of this property are given in the section on development of fixed physical property in the report on the carrier.