Wikipedia:WikiProject Trains/ICC valuations/Cape Girardeau Northern Railway

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The railroad of Cape Girardeau Northern Railway Company, hereinafter called the carrier, is a single-track standard-gauge railroad, located in the southeastern part of Missouri. The line extends from Ancell to West Chester, with a branch from Saline Junction to Farmington, and embraces 105.431 miles of main line and 7.425 miles of sidings and spurs, or a total of 112.856 miles of all tracks.

Corporate history.—The carrier was incorporated, at the instance of the St. Louis & San Francisco Railroad Company on January 11, 1913, under the laws of Missouri, for a term of 999 years. The carrier is controlled by the St. Louis & San Francisco Railroad Company, which owns a majority of its capital stock. On April 13, 1914, foreclosure proceedings were begun, the company at an earlier date having defaulted in the payment of its bond interest, and the following day a receiver was appointed. The company's affairs have remained in his hands since the date of his appointment.

With the exception of 0.133 mile of road built by the carrier, its entire line was acquired by purchase on February 21, 1913, from the Chester, Perryville & Ste. Genevieve Railway Company, Cape Girardeau & Chester Railroad Company, Cape Girardeau & Thebes Bridge Terminal Railroad Company, and the Saline Valley Railroad Company. The mileage acquired from these companies is as follows:

Cape Girardeau & Thebes Bridge Terminal Railroad Company Ancell-Cape Girardeau 6.00

Cape Girardeau & Chester Railroad Company Cape Girardeau-Highland 44.69

Chester, Perryville & Ste. Genevieve Railway Company Highland-West Chester 19.63

Saline Valley Railroad Company Saline Junction-Farmington 35.00

Total mileage purchased ¹105.32

1. This total is slightly in excess of the portion of the carrier's line now owned which was purchased, which is 105.298 miles.

The Cape Girardeau & Chester Railroad Company was successor to the St. Louis, Cape Girardeau & Southern Railroad Company, but acquired no mileage from it. The Chester, Perryville & Ste. Genevieve Railway Company was successor to the Chester, Perryville, Ste. Genevieve & Farmington Railroad Company. All six companies which thus became one were organized, and controlled and their properties were constructed by Louis Houck. These predecessors of the carrier are further discussed in Appendix 2.

APPENDIX 2

CAPE GIRARDEAU NORTHERN RAILWAY COMPANY

INTRODUCTORY

As previously stated, all six of the carrier's predecessor companies were organized, constructed, and controlled by Louis Houck, Houck thus in each instance becoming at once organizer, contractor, and majority stockholder. The facts with regard to their corporate history, history of corporate financing, capital stock and long-term debt, gross and net earnings, etc., in so far as could be ascertained from available records, and other facts with regard to the carrier which have not been previously set forth, are related below.

CORPORATE HISTORY

The Chester, Perryville, Ste. Genevieve & Farmington Railroad Company was incorporated on April 19, 1894, under the laws of Missouri. A line of 16.60 miles between Perryville and West Chester, and one of 3 miles between Claryville Junction and St. Mary's were completed and opened for commercial operations on January 1, 1895; and a line of 8 miles between St. Mary's and Ste. Genevieve was partially built, but was not completed by this company. The road was built and equipped by Houck under contract.

About three years after its incorporation, it defaulted in payment of its bond interest, and its property was sold to satisfy the mortgage. In October, 1897, proceedings were begun by the T. J. Moss Tie Company, and on October 13, 1898, a decree of foreclosure was entered. On January 10, 1899, the property was sold to a reorganization committee that operated it until April 12, 1899. On the latter date it was sold to the Chester, Perryville & Ste. Genevieve Railway Company, which company was organized by Houck and others for the purpose of buying it. By quitclaim deed, dated June 10, 1899, the company formally conveyed its property, rights, and franchises, including the lines above described and certain equipment, to the purchasers.

The Chester, Perryville & Ste. Genevieve Railway Company was incorporated on March 31, 1899, under the laws of Missouri. On April 12, 1899, it purchased from the reorganization committee, above referred to, the property, rights, and franchises of the Chester, Perryville, Ste. Genevieve & Farmington Railroad Company, which, as previously stated, were transferred to it on June 10, 1899, by quitclaim deed.

The property thus acquired, which has been described in the discussion with respect to the Chester, Perryville, Ste. Genevieve & Farmington Railroad Company, was later in part sold by the Chester, Perryville & Ste. Genevieve Railway Company, other property was leased by the Chester, Perryville & Ste. Genevieve Railway Company, still other property was purchased, and finally its entire holdings were sold to the carrier. The partially constructed line between St. Mary's and Ste. Genevieve, purchased from the Chester, Perryville, St.[sic] Genevieve & Farmington Railroad Company, was completed just prior to August 7, 1899, by Louis Houck. On February 2, 1902, the roadway property between Perryville Junction and Ste. Genevieve, a distance of 11 miles, except the rails, angle bars, and bolts, was sold to the St. Louis, Memphis & Southeastern Railroad Company for $140,000 in first-mortgage 4 per cent gold bonds of the purchaser. On September 1, 1904, the Chester, Perryville & Ste. Genevieve Railway Company leased all the property of the Cape Girardeau & Chester Railroad Company, consisting of 47.72 miles of railway between Perryville and Cape Girardeau and certain equipment, for a term of 29.5 years, the lease by mutual agreement becoming inoperative between July 1, 1907, and June 30, 1909. In consideration of this lease, the Chester, Perryville & Ste. Genevieve Railway Company guaranteed by indorsement the principal of the bonds of the Cape Girardeau & Chester Railroad Company and agreed to pay the interest thereon. Later, on June 8, 1907, in consideration of the continuance of this guaranty by the Chester, Perryville & Ste. Genevieve Railway Company during the period while the lease was inoperative, the Cape Girardeau & Chester Railroad Company conveyed to the Chester, Perryville & Ste. Genevieve Railway Company the 3.03 miles of its road between Perryville and a point near Highland. So that, at February 21, 1913, the Chester, Perryville & Ste. Genevieve Railway Company owned 19.63 miles of railway between West Chester and a point near Highland and leased 44.69 miles between this point near Highland and Cape Girardeau. On that date it voluntarily sold to the carrier all its property rights and franchises.

The St. Louis, Cape Girardeau & Southern Railroad Company was incorporated on November 20, 1900, under the laws of Missouri. The company acquired title to 97 parcels of land for right-of-way purposes on a line which it surveyed and located between Cape Girardeau and Perryville. It also acquired the franchise to lay a track over and across Independence Street in the city of Cape Girardeau. Further than this, it undertook no construction work. By quitclaim deed, dated October 3, 1902, the company conveyed all its rights of way, franchises, and surveys to the Cape Girardeau & Chester Railroad Company, the deed showing $8,350 and divers other considerations.

The Cape Girardeau & Chester Railroad Company was incorporated on June 5, 1902, under the laws of Missouri. The company acquired certain rights, and built a railroad which it first leased and then sold. In furtherance of its plans on October 3, 1902, it acquired title by quitclaim deed to all the rights of way franchises, and surveys of the St. Louis, Cape Girardeau & Southern Railroad Company. Utilizing the property acquired construction was begun subsequent to July, 1903, by Houck, and in September, 1904, was completed between Cape Girardeau and Apple Creek, and in the fall of 1905, between Apple Creek and Perryville. On September 1, 1904, the Cape Girardeau & Chester Railroad Company leased all its property to the Chester, Perryville & Ste. Genevieve Railway Company at the terms previously set forth. Finally, on February 21, 1913, the company sold all its property, rights, and franchises to the carrier. The property at that time consisted of 44.69 miles of railway between a point near Highland and Cape Girardeau, together with certain equipment.

The Cape Girardeau & Thebes Bridge Terminal Railroad Company was incorporated on April 24, 1902, under the laws of Missouri. The company acquired certain rights of way which it subsequently relinquished, and built a railroad which it never operated but sold. Prior to the incorporation of the company, all the rights of way from Fremsdorf Junction to Thebes Bridge, except 1,700 feet, had been acquired by Houck in the name of the corporation; but in 1904, a portion of these rights of way passed to the Southern Illinois and Missouri Bridge Company through condemnation proceedings. During the period between March, 1904, and July, 1909, 6 miles of road between a connection with the St. Louis Southwestern Railway Company at Ancell, Mo., and a connection with the Cape Girardeau & Chester Railroad Company at Cape Girardeau was built, under contract, by Louis Houck. This line was never opened to commercial operations by this company. In October, 1912, the company conveyed 1,320 lineal feet of its right of way to the Little River Drainage District, a Missouri corporation, and, in consideration of this conveyance, was awarded $10,000 payable in bonds of the Little River Drainage District, by the Circuit Court of Butler County, Mo.,[sic] On February 21, 1913, the company voluntarily sold all its property, rights, and franchises to the carrier.

The Saline Valley Railroad Company was incorporated on July 28, 1904, under the laws of Missouri. The road, built by Houck, was never formally opened to commercial operations, but was sold. Construction was begun at Saline Junction, and during the years 1904, 1905, and 1906, 18.85 miles were built; between August, 1907 and February, 1912, 3 miles were built, and between February, 1912 and September, 1912, 13.15 miles were built, thus completing the road between Saline Junction and Farmington, a distance of 35 miles, together with 1.343 miles of yard tracks and sidings. In building this line, a portion of the right of way of the Chester & Iron Mountain Railroad Company, a defunct concern incorporated in 1872, was used. Upon this portion the former owners expended about $169,000 for engineering, grading, and masonry, but in 1873 they abandoned the project. The property was never formally opened by the Saline Valley Railroad Company to commercial operations, but some commercial traffic, consisting principally of crossties, was handled by the contractor over that part of the road completed prior to 1908. On February 21, 1913, the Saline Valley Railroad Company voluntarily sold its property, rights, and franchises to the carrier.

The carrier.—The corporate history of the carrier is related in the body of this report.

HISTORY OF CORPORATE FINANCING, CAPITAL STOCK, AND LONG-TERM DEBT