Wikipedia:WikiProject Trains/ICC valuations/Augusta and Summerville Railroad

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The railroad of Augusta and Summerville Railroad Company, hereinafter called the carrier, is a single-track standard-gauge steam railroad, operating exclusively as a transfer road, connecting all the railroads and reaching industries in Augusta, Ga. The track is laid largely in the streets of Augusta. The carrier owns main-line track aggregating 2.207 miles. It also owns yard and side tracks totaling 1.100 miles. Its road thus embraces 3.307 miles of all tracks owned.

Corporate history.—The carrier was incorporated under a special act of the Legislature of the State of Georgia of March 20, 1866, for a term of 30 years, authorizing the construction and operation of a horse-car railroad from the lower Broad Street Market, in the city of Augusta, to the United States Arsenal, in the village of Summerville, about 5.5 miles, with branches thereto approximating 2 miles. The charter of the carrier was amended December 28, 1866, by an act of the legislature authorizing the use of steam motive power, and by an act of November 13, 1889, authorizing the use of any motive power desired, an increase of capital stock, and the issuance of bonds. The organization of the carrier was perfected September 24, 1866. The original charter expiring March 20, 1896, the carrier secured a renewal on January 6, 1896, for a further term of 50 years, under the general railroad laws of the State of Georgia. The carrier's principal office is located at Augusta. The detailed facts as to the development of the fixed physical property are given in Appendix 2.

APPENDIX 2

INTRODUCTORY

During the period from January 8, 1868, to February 18, 1897, the carrier operated its property and performed switching service for the several railroads entering Augusta, under and by virtue of a certain contract of franchise with the city of Augusta. Charges for these services were regulated by Individual contracts between the carrier and each of the railroads interested. Upon the expiration of its original charter, March 20, 1896, the city council of Augusta declined to continue the carrier's franchise for doing a terminal and transfer business, although the carrier had obtained a renewal of its charter from the State. Thereupon the controlling companies acquired from the State and city the right to lay down and operate tracks in the streets formerly exclusively used by the carrier for terminal and transfer purposes, and at the same time purchased from the public the entire outstanding capital stock of the carrier. As the carrier owned tracks already located in the streets when its charter terminated, and as the city council refused to give it permission to do the terminal and transfer business it had theretofore done, but granted that right and privilege to the controlling companies, those companies rented the tracks of the carrier and operated them from February 18, 1897, to March 1, 1900, with their own engines, equipment, and employees and under their own franchises, State and municipal.

Under an agreement dated March 1, 1899, between the controlling companies, the carrier was reestablished as a terminal company to perform certain limited and nominal services, and from March 1, 1900, to date of valuation the carrier operated its property for the joint benefit of the controlling companies under a joint-facility contract dated March 1, 1900. The net income resulting from the operations under this contract was recorded in the accounts of the carrier as nonoperating income.

DEVELOPMENT OF FIXED PHYSICAL PROPERTY

The original 7.5 miles of railroad and the buildings of the carrier were constructed by Hoy-Kennedy Company of New York under a contract dated March 20, 1867. John P. Kennedy, a member of the firm, was apparently Interested in the carrier through stock ownership, but to what extent could not be determined from the records obtainable. Construction work was begun in the latter part of the year 1866, and the property was placed in operation January 8, 1868. Subsequent to the date of completion of the original road, sundry extensions and additions and betterments were made to the property by the carrier with its own forces.

On July 31, 1890, the street-car properties, consisting of 5.5 miles of track and equipment, owned by the carrier, were sold to the Augusta Railway Company, thereby reducing the mileage of the carrier on date of valuation to 3.307 miles, consisting entirely of switching and industrial tracks connecting the railroads entering the city of Augusta with one another and with industries in and near the city.

HISTORY OF CORPORATE FINANCING