Wikipedia:WikiProject Trains/ICC valuations/Wisconsin, Minnesota and Pacific Railroad

Interstate Commerce Commission, Valuation Reports, Volume 35

Location and General Description of Property
The railroad of Wisconsin, Minnesota, & Pacific Railroad Company, hereinafter called the Wisconsin, Minnesota & Pacific, which also is leased to and operated by the carrier [ Chicago Great Western Railroad ], is a single-track, standard-gage line extending easterly from Mankato to Red Wing Minn., thence southerly through Simpson, Minn., to Osage, Iowa. Branch lines extend from Simpson to Winona, Minn., and from Goodhue to Bellechester, Minn. The Wisconsin, Minnesota & Pacific owns 272.125 miles of road, and also yard and sidetracks as shown in the trackage table in Appendix 1.

Introductory
The Wisconsin, Minnesota & Pacific is a corporation of the State of Minnesota, having its principal office at Chicago, Ill. From the date of its incorporation to June 1, 1899, the Wisconsin, Minnesota & Pacific was controlled by The Chicago, Rock Island and Pacific Railway Company. Since June 1, 1899, it has been controlled by the Chicago Great Western Railway Company and the latter's successor, the carrier, through ownership of the entire outstanding capital stock. On the other hand, the records do not indicate that the Wisconsin, Minnesota & Pacific controls any carrier corporation.

The property of the Wisconsin, Minnesota & Pacific was operated for it by the Minneapolis & St. Louis Railroad Company from October 27, 1897, the date of consolidation, to May 31, 1899, and by the Chicago Great Western Railway Company from June 1, 1899, to April 30, 1901. Since May 1, 1901, its property has been successively operated under lease by the Chicago Great Western Railway Company and the carrier. Through certain provisions in the consolidation agreement the books of the Wisconsin, Minnesota & Pacific record the results of operations of the consolidated companies as and from May 1, 1894.

Corporate History
The Wisconsin, Minnesota & Pacific was incorporated on October 27, 1897, through filing, in the State of Minnesota, an agreement dated October 13, 1897, providing for the consolidation of the property, rights, and franchises of the Wisconsin, Minnesota and Pacific Railroad Company and the rights, franchises, and land grants of the Wisconsin, Minnesota and Pacific Railway Company. The Wisconsin, Minnesota & Pacific also subsequently acquired the properties of two other companies. The following chart shows the companies comprised in the corporate history of the Wisconsin, Minnesota & Pacific, their respective dates of incorporation and 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 railroad, owned by the Wisconsin, Minnesota & Pacific on date of valuation was acquired in part by consolidation and purchase and in part by construction. In the following table are shown the years in which and the companies by which the several parts of the property were constructed and the manner in which they were acquired by the Wisconsin, Minnesota & Pacific: Two surveys for a proposed railroad between Red Wing and Mankato, Minn., a distance of about 82 miles, were made by The Cannon River Improvement Company, but no construction work was performed prior to the demise of that company.

Leased Railway Property
The entire property of the Wisconsin, Minnesota & Pacific is operated by the carrier under a 100-year lease dated April 30, 1901. The lease provides that out of the net earnings from the operation of the leased property the carrier will, on the first day of June and December in each year, pay the coupons on the Wisconsin, Minnesota & Pacific's bonds, and that any surplus of net earnings in any six months shall be regarded as a trust fund in the hands of the carrier and carried forward in its accounts and held available for the payment of future bond interest. Such trust fund, it is provided, is to be construed only as an agreement of the carrier to pay the bond interest as it matures to the extent of the net earnings of any six months plus the aggregate amount of surplus in the trust fund.

As hereinbefore explained, no rental for the use of the property or accrued interest has been recorded by the Wisconsin, Minnesota & Pacific since July 1, 1913.

Wisconsin, Minnesota and Pacific Railroad
The Wisconsin, Minnesota and Pacific Railroad Company was organized on April 9, 1894, by a purchasing committee, acting on behalf of The Chicago, Rock Island and Pacific Railway Company, for the purpose of taking title to the railroad property, but not the rights, franchises, and land grants, of The Wisconsin, Minnesota and Pacific Railway Company. The purchasing committee had acquired, through foreclosure sale, the railroad property of this company, consisting of 215.23 miles of main track and 1.4 miles of jointly owned track.

The Wisconsin, Minnesota and Pacific Railroad Company issued $5,000,000 of its capital stock to the purchasing committee for transfer to it on April 9, 1894, of the above-mentioned railroad property. In making the transfer, the purchasing committee executed a mortgage on the property, which was placed in trust for the benefit of The Chicago, Rock Island and Pacific Railway Company.

Because of doubtful title to land-grant lands patented to and sold by The Wisconsin, Minnesota and Pacific Railway Company, due to certain stipulations respecting the application of the proceeds from the sale of such lands, the property, rights, and franchises of the Wisconsin, Minnesota and Pacific Railroad Company and the rights, franchises, and land grants of The Wisconsin, Minnesota and Pacific Railway Company were consolidated under agreement dated October 13, 1897, to form the Wisconsin, Minnesota & Pacific. Wisconsin, Minnesota and Pacific Railroad Company's stock was surrendered and canceled in the consolidation.

No books of account of this company are obtainable. The consolidation agreement provided that the accounts of both this company and The Wisconsin, Minnesota and Pacific Railway Company that accrued after May 1, 1894, were to be consolidated on the books of the new company.

The Wisconsin, Minnesota and Pacific Railway; The Minnesota Central Rail Road
Introductory

The Wisconsin, Minnesota and Pacific Railway Company, a corporation of the State of Minnesota, was controlled by the Minnesota Central Construction Company until July 1, 1884, and by The Chicago, Rock Island and Pacific Railway Company from the latter date to October 13, 1897, the date of consolidation.

It owned on March 21, 1894, the date of the sale, at foreclosure, of its railroad property, about 215.23 miles of main track, consisting of two detached lines. One of the lines, 93.73 miles in length, extended from Red Wing to Mankato, Minn., and the other, 121.50 miles, from Morton, Minn., to Burlington, Cedar Rapids and Northern Junction, S. Dak. Between the last-named point and Watertown, S. Dak., this company owned about 1.4 miles of main track jointly with the Burlington, Cedar Rapids & Northern Railroad Company.

The first section of road, Red Wing to Waterville, Minn., was operated by the Minneapolis & St. Louis Railroad Company as agent for the aforementioned construction company from September, 1882, to July 1, 1884. The net proceeds from operation during this period were paid to the construction company. From July 1, 1884, to date of sale, the Minneapolis & St. Louis Railroad operated the property as agent for The Chicago, Rock Island and Pacific Railway Company, and the net proceeds from operation were paid to that company.

Development of Fixed Physical Property

The road owned on the date of sale had been acquired by construction. The section of road from Red Wing to Waterville, Minn., 66 miles, was constructed by the construction company. The remainder of the mileage was constructed by the Wisconsin, Minnesota and Pacific Railway Company. Further details with respect to the construction of the property are given in the chapter on development of fixed physical property of the Wisconsin, Minnesota & Pacific.

The Cannon River Improvement Company
The Cannon River Improvement Company was originally incorporated in 1865 in Minnesota to construct canals, locks, dams, and generally for the purpose of constructing facilities for slack-water navigation from the Mississippi River, via Cannon River and Lake Elysian, to the Mississippi River near Mankato, Minn. Its charter was amended on March 19, 1872, to permit it to construct and operate a railroad from the Mississippi River through the Cannon River Valley in the general direction of the proposed canal and slack-water navigation.

Through an act of the legislature of the State of Minnesota, dated March 2, 1865, The Cannon River Improvement Company was granted, in aid of construction, 300,000 acres of swamp land, to be patented, in stated proportions, upon the completion of each 10-mile section of the project authorized in its charter. By an act of February 27, 1875, the land grant was extended to January 1, 1881, the State of Minnesota to reserve one-twelfth of the lands earned by this company should it elect to build a railroad in lieu of the navigation project. The land grant and franchises of The Cannon River Improvement Company were merged, on December 3, 1878, with The Wisconsin, Minnesota and Pacific Railway Company, by authority of an act of the Legislature of the State of Minnesota dated March 10, 1873.

Up to the date of the merger, two surveys had been made for a proposed railroad between Red Wing and Mankato, Minn., a distance of about 82 miles, but no actual construction work had been performed. No records are obtainable showing what expenditures were made by The Cannon River Improvement Company.

The Duluth, Red Wing and Southern Railroad
Introductory

The Duluth, Red Wing and Southern Railroad Company was a corporation of the State of Minnesota. Its incorporators also organized the Red Wing, Duluth and Sioux City Construction Company, which controlled the Duluth, Red Wing and Southern Railroad Company, through stock ownership, until June 21, 1901. On this date a majority of its stock was acquired by the Interstate Investment Trust, Limited, an organization acting on behalf of the Chicago Great Western Railway Company.

The Duluth, Red Wing and Southern Railroad Company owned on July 5, 1901, the date of the sale of its property, about 25 miles of single-track, main-line railroad, extending from Red Wing to Zumbrota, Minn. From the date of completion, May 13, 1889, to February 23, 1893, this property was operated by the Red Wing, Duluth and Sioux City Construction Company, and from the latter date to the date of sale it was operated by The Duluth, Red Wing and Southern Railroad Company.

The accounting records of this company were not obtainable. Details obtained from the minute books and from reports filed with the Railroad and Warehouse Commission of Minnesota have been given in appropriate sections of this report.

Development of Fixed Physical Property

The road owned on date of sale had been acquired by construction, under contract with the Red Wing, Duluth and Sioux City Construction Company. The road was completed and placed in operation on May 13, 1889.

Winona and Western Railway
Introductory

Winona and Western Railway Company was a corporation of the State of Minnesota. Its incorporators, officers, and majority stockholders were similarly identified with the Winona & Southwestern Improvement Company. It owned on September 10, 1901, the date of the sale of its property, about 120.75 miles of single-track, standard-gage railroad, consisting of a main line extending from Winona, Minn., to Osage, Iowa, about 113.20 miles, and a branch line extending from Simpson to Rochester, Minn., about 7.55 miles. Winona and Western Railway Company operated its property from the date of acquisition to the date of sale.

Development of Fixed Physical Property

Winona and Western Railway Company purchased, on November 28, 1894, the property formerly owned by The Winona and Southwestern Railway Company, about 114.5 miles in length, extending from Winona, Minn., to Osage, Iowa, which had been acquired at foreclosure by a purchasing committee representing the stockholders of the Winona & Southwestern Improvement Company. In addition to the purchased road, the Winona and Western Railway Company constructed, in 1901, a branch line from Simpson to Rochester, Minn., 7.55 miles. Through revisions of line, 1.3 miles were abandoned, leaving approximately 120.75 miles of road owned on date of sale.

The Winona and Southwestern Railway; The Winona and LaCrosse Railroad
Introductory

The Winona and Southwestern Railway Company, which originally bore the name The Winona and LaCrosse Railroad Company, a corporation of the State of Minnesota, was controlled from about 1872 to October 27, 1894, the date of the sale of its property, by individuals identified with the Laird-Norton Lumber Company of Winona, Minn. It owned on the date of sale about 114.5 miles of single-track, standard-gage railroad, extending from Winona, Minn., southwesterly to a point on the west line of Osage Township, near Osage, Iowa. From the date of completion to November 21, 1893, the property of this company was operated by the Winona & Southwestern Improvement Company and by The Winona and Southwestern Railway Company. On November 21, 1893, the property was placed in the hands of a receiver, who operated it until it was sold at foreclosure on October 27, 1894.

Development of Fixed Physical Property

Of the 114.50 miles of road owned by The Winona and Southwestern Railway Company on the date of its demise, 113.15 miles had been acquired by construction, and 1.35 miles by purchase from the Winona, Osage & Southwestern Railway Company. The mileage acquired by construction was built by the Winona & Southwestern Improvement Company under contract. Details with respect to the construction of this property are given in the chapter on development of fixed physical property of the Wisconsin, Minnesota & Pacific.

Winona, Osage & Southwestern Railway–Predecessor of The Winona and Southwestern Railway
Introductory

Winona, Osage & Southwestern Railway Company was a corporation of the State of Iowa. Its principal incorporators and officers were identified with the Winona & Southwestern Improvement Company and were also officers and directors of The Winona and Southwestern Railway Company, whose records show that the Winona, Osage & Southwestern Railway Company was contemplated “as a part of and an extension of” that company.

Winona, Osage & Southwestern Railway Company owned on October 20, 1891, the date of the sale of its property to The Winona and Southwestern Railway Company, 1.35 miles of single-track railroad, extending from connection with the line of the Illinois Central Railroad in Osage, Iowa, to the west line of Osage Township, Mitchell County, Iowa.

No accounting records of this company were obtainable. Little information can be given, therefore, with reference to its financial and other transactions.

Development of Fixed Physical Property

The road owned by the Winona, Osage & Southwestern Railway Company on the date of its demise was constructed for it under contract with the Winona & Southwestern Improvement Company concurrently with the construction of the last section of The Winona and Southwestern Railway Company's road in Iowa.