Wikipedia:WikiProject Trains/ICC valuations/Beech Creek Railroad

Interstate Commerce Commission, Valuation Reports, Volume 27

Beech Creek Railroad

The railroad of the Beech Creek Railroad Company, herein called the Beech Creek Railroad, is located within the State of Pennsylvania and extends from Jersey Shore Junction to Mahaffey Junction with many mine spurs, some of which are disconnected from the main section of road. With the exception of 11.458 miles that are double track, the railroad is single track and aggregates 164.709 miles of road.

Introductory

The Beech Creek Railroad is a corporation of the State of Pennsylvania, having its principal office at Philadelphia, Pa. The accounting records of the Beech Creek Railroad do not include income or profit and loss accounts for the period prior to January 1, 1908. Therefore, only partial information can be given from its accounts regarding its corporate operations. The records reviewed do not indicate that the Beech Creek Railroad is controlled by any individual or corporation on the date of valuation, nor, on the other hand, that it controls any common-carrier corporation. The property of the Beech Creek Railroad was operated by its own organization from June 30, 1886, the date the first section of its road was put in operation, to October 1, 1890. From the latter date to the date of valuation, it has been operated under lease by The New York Central and Hudson River Railroad Company and its successor, the New York Central.

Corporate History

The Beech Creek Railroad was incorporated June 30, 1886, under the general laws of the State of Pennsylvania, for the purpose of acquiring the property, rights, and franchises of The Beech Creek, Clearfield and South Western Rail Road Company. The date of its organization has not been ascertainable from the records reviewed.

Although the Beech Creek Railroad was incorporated June 30, 1886, as stated, it entered into a subsequent so-called consolidation agreement on May 11, 1898, for the purpose of acquiring the property of the Cambria County Railroad Company, and, in this so-called consolidation agreement the corporate name of the consolidated company was designated as the Beech Creek Railroad Company. However, the accounting records have been continuous from the date the Beech Creek Railroad opened its books, to the date of valuation. No new securities were recorded as being issued in any such consolidation, and the property so acquired was taken over by the Beech Creek Railroad as though by purchase or merger and is so considered in this report.

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.

No.	Name	Incorporation	Succession
1	Beech Creek Railroad Company.	Under general laws of Pennsylvania, June 30, 1886.
2	The Beech Creek, Clearfield and South Western Rail Road Company.	See 3.	Sold at sheriff's sale June 4, 1886, to bondholders' committee and reorganized June 30, 1886, as 1.
3	The Susquehanna and South Western Rail Road Company.	Under general laws of Pennsylvania, Aug. 12, 1882.	Name changed to 2, Mar. 20, 1883.
4	Cambria County Railroad Company.	Under general laws of Pennsylvania, Aug. 31, 1896.	Acquired by 1, under so-called consolidation agreement May 11, 1898.

Development of Fixed Physical Property

The owned mileage of the Beech Creek Railroad, 164.709 miles, was acquired partly by purchase, partly by so-called consolidation, and partly by construction. The years in which the various portions of the line were constructed and the manner in which the Beech Creek Railroad acquired the property are indicated in the following table, wherein, to facilitate comparison with the table showing corporate succession, previously given, the same order of corporations is maintained.

Mileage inventoried as of date of valuation: 164.709 miles.

Acquired by construction: 28.07 miles.
- Kerrmoor to Mahaffey Junction, Pa., 1892. 11.94 miles.
- Various branches, various dates. 16.13 miles.
Acquired from committee of bondholders:
- From the Beech Creek, Clearfield and South Western Rail Road Company, June 30, 1886— 125.43 miles.
  - Constructed by that company—
    - Jersey Shore Junction to Munson, Pa., 1884. 66.55 miles.
    - Munson to Kerrmoor, Pa., 1885. 33.82 miles.
    - Kerrmoor to Gazzam, Pa., 1885. 2.98 miles.
    - Wye at Jersey Shore Junction, Pa. .50 miles.
    - Viaduct, Pa., to Pleasant Hill Mine. 7.89 miles.
    - Munson to Philipsburg, Pa. 7.52 miles.
    - Hawk Run, Pa., to Morrisdale No. 2 Mine. 2.24 miles.
    - Clearfield Junction to Clearfield, Pa. 3.93 miles.
Acquired under so-called consolidation agreement:
- From the Cambria County Railroad Company, May 11, 1898— 18.44 miles.
  - Constructed by that company—
    - Wigton Junction to Spangler, Pa., 1897. 8.06 miles.
    - Various branches, various dates 2.32. 10.38 miles.
Difference between total recorded mileage and mileage inventoried as of date of valuation. 0.829 miles.

The records reviewed indicate that the construction work of the Beech Creek Railroad was performed by the forces of The New York Central and Hudson River Railroad Company (first corporation).

Leased Railway Property

The entire property of the Beech Creek Railroad is leased to the New York Central for a term of 999 years from Oct. 1, 1890. The terms of the lease and the rental accrued for the year ending on date of valuation are given in the chapter on leased railway property in the report on the New York Central.

Predecessor Companies

The Beech Creek, Clearfield and South Western Rail Road Company, Formerly Named The Susquehanna and South Western Rail Road Company

Introductory

The Beech Creek, Clearfield and South Western Rail Road Company was incorporated August 12, 1882, in the State of Pennsylvania as The Susquehanna and South Western Rail Road Company, and its name was changed March 20, 1883, to The Beech Creek, Clearfield and South Western Rail Road Company. The accounting records of the Beech Creek, Clearfield and South Western Rail Road Company do not include income or profit and loss accounts for the period prior to the date of sale of its property. However, subsequently to that date, certain entries were recorded in its profit and loss accounts which were explained as having been made for the purpose of "the distribution pro rata among the stockholders in 1892 of the undivided cash on hand at that time." The records reviewed do not indicate that The Beech Creek, Clearfield and South Western Rail Road Company was controlled by any individual or corporation on June 4, 1886, the date of sale, nor on the other hand, that it then controlled any common-carrier corporation.

The property of this company was operated by its own organization from the date it was completed to the date of sale. The railroad operated by The Beech Creek, Clearfield and South Western Rail Road Company on the date of sale amounted to 125.43 miles, all owned. It consisted of a single-track, standard-gage, steam railroad, wholly within the State of Pennsylvania and extending from Jersey Shore Junction to Gazzam, Pa., a distance of 103.85 miles, with branches aggregating 21.58 miles.

Development of Fixed Physical Property

The entire 125.43 miles of road owned by The Beech Creek, Clearfield and South Western Rail Road Company on the date of sale had been acquired by construction. The construction work was performed by George J. Magee, contractor, who does not appear to have been affiliated with the 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 Beech Creek Railroad.

Cambria County Railroad Company

The Cambria County Railroad Company was incorporated August 31, 1896, in the State of Pennsylvania. No accounting records of the Cambria County Railroad Company were obtained. Therefore, no information can be given from its accounts regarding its financial dealings, corporate operations, or investments. However, certain data indicated below were obtained from its minute book and from the records of The New York Central and Hudson River Railroad Company. The Cambria County Railroad Company was controlled on May 11, 1898, the date of merger, by The New York Central and Hudson River 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 the company was operated under lease by The New York Central and Hudson River Railroad Company from the date it was completed to the date of merger. The railroad owned by the Cambria County Railroad Company on the date of merger consisted of approximately 10 miles of single-track, standard-gage, steam railroad, extending from Wigton Junction to Spangler, Pa., a distance of approximately 8 miles, together with four branches to mines, aggregating approximately 2 miles.

The 10 miles of road owned by the company on the date of merger had been acquired by construction. The construction work was performed by the forces of The New York Central and Hudson River Railroad 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 Beech Creek Railroad.

The authorized capital stock of the Cambria County Railroad Company was $165,000 par value, divided into shares of $50 par value each. All of this stock was issued to The New York Central and Hudson River Railroad Company in payment for construction advances. The latter company recorded $165,000 as money outlay expended by it, including $3,330.70 for interest during construction, in constructing the property of the Cambria County Railroad Company.