Wikipedia:WikiProject Trains/ICC valuations/Intermountain Railway

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The railroad of Intermountain Railway Company, hereinafter called the carrier, is a single-track standard-gauge steam railroad located in the south-central part of Idaho. The owned mileage extends northerly from Arrowrock Junction to Centerville, Idaho, a distance of 27.991 miles. The carrier also owns yard and side tracks totaling 3.881 miles, of which 2.242 miles are at Barber, Idaho, on the United States Reclamation Service Railroad. Its read thus embraces 31.872 miles of all tracks owned. The carrier also has trackage rights over the United States Reclamation Service Railroad, between Barber Junction and Arrowrock Junction, a distance of 11.80 miles. In Appendix 1 will be found a general description of the property of the carrier.

Corporate history.—The carrier was incorporated on July 19, 1907, under the laws of the State of Idaho, for a period of 50 years, by four residents of Eau Claire, Wis., and one of Boise, Idaho, the principal incorporator being James T. Barber. Organization was perfected on the same day, at a meeting of stockholders held after the articles of incorporation were filed. It was planned to construct and operate a railroad from the Boise River, near the Barber sawmill in Ada County, Idaho, to Centerville, in Boise County, about 45 miles, the purpose being to make accessible large tracts of standing timber. The principal office of the carrier is at Boise, Idaho. The carrier was at first controlled by the Barber Lumber Company, but in June, 1914, the Boise–Payette Lumber Company obtained control through ownership of a majority of the capital stock. The detailed facts as to the development of the fixed physical property are given in Appendix 2.

History of corporate financing, capital stock, and long-term debt.—

APPENDIX 2

DEVELOPMENT OF FIXED PHYSICAL PROPERTY

The property owned by the carrier on date of valuation was acquired by construction. The original survey adopted was for a line to run from a connection with the Oregon Short Line Railroad Company at Barber Junction to Centerville, Idaho. In February, 1907, prior to incorporation, grading was begun about 0.25 mile east of Barber Junction. It was completed to a point about 1.75 miles east of Barber Junction by September, 1907, when work was discontinued. On May 2, 1911, an agreement was made with the United States Reclamation Service granting it an easement for the construction of a railroad from Barber Junction to Arrowrock Junction, Idaho, so far as the original survey, completed grading, etc., of the carrier were concerned. Under this agreement a railroad was constructed between those points by the United States Reclamation Service and trackage rights over it were granted to the carrier.

Surveying of the carrier's own road between Arrowrock Junction and Centerville was begun in March, 1914, and completed in May, 1915. Actual construction of the section between Arrowrock Junction and Big Bend, Idaho, was begun in June, 1914, and completed in December, 1914, though the road was not turned over for operation until May 1, 1915. Construction of the section from Big Bend to Centerville was begun in April, 1915, and completed in June, 1915, the section being turned over for operation July 1, 1915. Grading, masonry, and other work between engineer stations 620 and 1340 were performed under contract by the Wasatch Grading Company of Salt Lake City, Utah. Between stations 1340 and 1972, the work was done by the same company under a contract made with the Boise–Payette Lumber Company, and between stations 1972 and 2110, the work was done by Thomas Helean, of Boise, Idaho. The bridge-construction work was performed by the Oregon Bridge & Construction Company of Portland, Oreg. These contracts named cash considerations based on work done or materials furnished, computed at specified unit prices, and there is no indication that any of the contractors were affiliated with the carrier or its officials.

Under date of June 5, 1914, an agreement was made between the Boise–Payette Lumber Company and the carrier whereby the former, in order to reach a large body of timber owned by it, agreed to construct the road from a point at or near the confluence of Grimes and Moores Creeks to a point at or near the confluence of Granite and Grimes Creeks. The carrier agreed to furnish the necessary right of way, except where the line crossed property owned by the Boise–Payette Lumber Company, in which cases the latter agreed to deed a 100-foot right of way without cost. The carrier also agreed to haul all material over its road from Barber and to return all unused material and equipment to Barber without charge. An engine, cars, and work equipment for tracklaying were to be provided free for the Boise–Payette Lumber Company, which was to pay the engine and train crews, and to furnish at actual cost, plus 10 per cent, all material and labor for completing the road. Under these conditions the line was extended to Big Bend, Idaho. This line was later extended to Centerville, Idaho, a distance of 2.50 miles, construction of which extension was commenced in April, 1915, and completed in June, 1915.

The Boise–Payette Lumber Company agreed to accept in settlement for the work done and materials furnished 7 per cent notes of the carrier, payable on or before 10 years from date thereof, and secured by a first mortgage on that part of the road included in the contract, or to take first-mortgage bonds covering the same portion of the road and drawing 7 per cent interest. It does not appear that either plan of settlement was followed, as the Boise–Payette Lumber Company has been credited in open account with the construction expenditures and cash advances.

No part of the surfacing and ballasting was contracted for. This work was done by forces of the carrier, as was that part of the tracklaying not done by the Boise–Payette Lumber Company.

In November, 1914, the construction of certain yard tracks at Barber was begun but they were not completed at date of valuation. To that date there had been constructed 27.99 miles of main track and 3.88 miles of yard tracks, sidings, and spurs.

HISTORY OF CORPORATE FINANCING