Wikipedia:WikiProject Trains/ICC valuations/St. Louis Southwestern Railway of Texas

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Corporate history.—The Southwestern of Texas was incorporated January 12, 1891, under the general laws of Texas for the purpose of acquiring the property, rights, and franchises of The St. Louis, Arkansas & Texas Railway Company in Texas, whose property had been sold at foreclosure January 9, 1891, to Louis Fitzgerald, purchasing trustee, for a reorganization committee. On October 6, 1899, the Southwestern of Texas acquired the property, rights, and franchises of the Tyler Southeastern Railway Company and on July 7, 1903, the property, rights, and franchises of the Texas and Louisiana Railroad Company were acquired. The principal office is at Tyler, Tex. The Southwestern of Texas is controlled by the carrier through ownership of capital stock. The detailed facts as to the development of the fixed physical property are given in Appendix 2.

CORPORATE HISTORY

The Southwestern of Texas was known at the date of valuation as a "Gould road," being organized as a part of what is popularly known as the St. Louis Southwestern System, controlled by the Gould family. The carrier may be considered the parent company. It owns all the stock of the Southwestern of Texas, of its own three leased lines, and also of the Stephenville North and South Texas, which is leased to the Southwestern of Texas. In addition, it owns nearly all the funded debt of all the corporations belonging to the so-called system. The Southwestern of Texas acquired its first property through a joint reorganization committee of the bondholders, which had acquired all the rights, property, and franchises of the St. Louis, Arkansas & Texas in Texas, and of the St. Louis, Arkansas & Texas of 1887, after foreclosure sale to Louis Fitzgerald on January 9 and February 5, 1891. Under the joint reorganization plan and agreement between the stock and bondholders of the two companies, three new companies were formed about the same time and as part of the one reorganization scheme; namely, the carrier, the Southwestern of Texas and the Tyler Southeastern Railway Company. The purchasing trustee deeded the property of the St. Louis, Arkansas & Texas of 1887 to the carrier; that of the St. Louis, Arkansas & Texas in Texas, except the Lufkin branch, to the Southwestern of Texas; and the Lufkin branch to the Tyler Southeastern.

DEVELOPMENT OF FIXED PHYSICAL PROPERTY

The owned mileage of the Southwestern of Texas was acquired as follows:

In reorganization, Jan. 13, 1891, property of the St Louis, Arkansas & Texas in Texas:

Texarkana to Gatesville 305

Mount Pleasant to Sherman 109

Commerce to Fort Worth 99

Corsicana to Hillsboro 40

Purchase:

Oct. 6, 1899, property of the Tyler Southeastern, Tyler to Lufkin 90

July 7, 1903, property of the Texas and Louisiana Railroad Company, Lufkin to Monterey 22

Sept. 14, 1907, Railroad of the Lufkin Land & Lumber Company, Warsaw to White City 16

Construction:

1903, Addison to Dallas 12

1904, Monterey to Warsaw 4

Total 697

HISTORY OF CORPORATE FINANCING

are as follows:

Solely used, but not owned, leased from—

Stephenville North and South Texas: Entire property, 106 miles, for a period of 10 years with option of renewal for 40 years at an annual rental equal to interest on outstanding bonds, all taxes and assessments. The principal and interest of the bonds are guaranteed by the carrier $130,350.00

Solely owned but jointly used, used with—

[...]

Total solely owned but jointly used 68,989.44

Jointly used but not owned, owned by—

The Texas and Pacific Railway Company: Line from Hodge to Fort Worth, Tex., 7 miles; indefinitely from Apr. 1, 1900, at 40 cents per mile and 50 cents per train for switching trains in yard 2,060.74

Texas and Pacific Railway Company: Passenger station, Fort Worth, Tex.; indefinitely from Apr. 1, 1900; annual rental $4,800 2,400.00

Gulf, Colorado and Santa Fe Railway Company; Freight station and team tracks at Fort Worth, Tex.; indefinitely from Dec. 9, 1912, at an annual rental of $1,000, a switching charge of $2.50, per car, and 50 cents per loaded car for maintenance, taxes, etc. 1,701.48

Dallas Terminal Railway & Union Depot Company: Main track at Dallas, Tex., with yard tracks and all facilities, 2 miles; 30 years from May 1, 1903, at an annual rental equal to the interest on outstanding bonds and agreed proportion of operating expenses, taxes, etc. 50,417.52

Fort Worth & Rio Grande Railway Company (contract of Stephenville assumed): Main track at Stephenville, Tex., with yard tracks and passenger and freight station, 1 mile; 10 years from July 27, 1907, for 2.5 per cent interest on the valuation as rental and a proportion of the operating expenses 1,105.56

Total, jointly used but not owned 57,685.30

The logging trains of the Lufkin Land and Lumber Company use the line of the Southwestern of Texas between Lufkin and White City, Tex., for which privilege that company paid $4,566.20 during the year ending June 30, 1915, at the rate of 20 cents per train-mile.

Predecessor Companies

THE ST. LOUIS, ARKANSAS & TEXAS RAILWAY COMPANY IN TEXAS

This company was incorporated on January 29, 1886, under the laws of the State of Texas, for the purpose of acquiring the property, rights, and franchises of Texas & St. Louis Railway Company in Texas, which had been sold at a foreclosure sale on February 10, 1886, to a bondholders' committee, with the exception of its land grant, which had been sold separately. This committee conveyed the property to the company by deed dated February 11, 1886, and acting for the bondholders of The Texas and St. Louis Railway Company in Missouri and Arkansas, it also acquired the property and franchises of that company at foreclosure sale and conveyed the same to the St. Louis, Arkansas & Texas of 1887, which was incorporated on April 15, 1886.

On April 29, 1887, the company acquired the property, rights, and franchises of the Kansas and Gulf Short Line Railroad Company.

On May 13, 1889, S. W. Fordyce was appointed receiver of the property of the company and on the same day was appointed as receiver for the property formerly belonging to the Kansas and Gulf Short Line. On June 23, 1889, A. H. Swanson was appointed co-receiver for both properties.

Under decrees of foreclosure, both of the properties were sold to Louis Fitzgerald, purchasing trustee, representing the bondholders who, on January 13, 1891, conveyed that of the company to the Southwestern of Texas, and that of the Kansas and Gulf Short Line to the Tyler Southeastern Railway Company. The receivers operated the properties until June 1, 1891, when they were turned over to the new companies. The same interests controlled both the St. Louis, Arkansas & Texas of 1887 and the company and the properties were operated as one system.

The company owned and operated about 643 miles of single-track railroad, all in Texas, extending from a connection with the St. Louis, Arkansas & Texas of 1887 at the Texas-Arkansas State line in Texarkana to Gatesville, [?] The owned mileage of the company was acquired as follows:

By reorganization, main line, February 11, 1886, narrow-gauge railroad of the Texas & St. Louis Railway Company in Texas, Texarkana to Gatesville 305

By purchase, branch, Apr. 29, 1887, narrow-gauge railroad of the Kansas and Gulf Short Line, Tyler to Lufkin 90

By construction, standard gauge, branch lines:

1887, Mount Pleasant to Sherman 109

1888, Corsicana to Hillsboro 40

1888, Commerce to Fort Worth 99

Total 643

The entire narrow-gauge line of the Texas & St. Louis Railway Company in Texas, acquired at reorganization, was all changed to standard gauge by January 12, 1887. The branch from Tyler to Lufkin remained narrow-gauge.

HISTORY OF CORPORATE FINANCING

TEXAS & ST. LOUIS RAILWAY COMPANY IN TEXAS, THE TEXAS AND ST. LOUIS RAILWAY COMPANY, TYLER TAP RAILROAD COMPANY

CORPORATE HISTORY

The initial steps toward the subsequent formation of the Texas & St. Louis in Texas were taken on December 1, 1871, when under a special act of the Texas Legislature the Tyler Tap Railroad Company was incorporated. The act provided for a grant of a 200-foot right of way over state lands and a land grant of 12 sections (640 acres each) for each mile of narrow gauge line, or 16 sections for each mile of standard-gauge line constructed. By an amendment dated May 14, 1879, the name of the company was changed to The Texas and St. Louis Railway Company and by another amendment dated August 16, 1881, it was changed to Texas & St. Louis Railway Company in Texas.

W. R. Woodard was appointed receiver on January 16, 1884, and was superseded by S. W. Fordyce on April 1, 1885. As a result of foreclosure proceedings the property with the exception of the land-grant lands was sold by a special master in chancery to a bondholders' committee consisting of William Mertens, Georgie Coppell, Lewis S. Wolff, M. Gernsheim, and J. W. Paramore. The sale was approved by the court on January 2, 1886, and on February 10, 1886, the property was conveyed by master's deed to the purchasers. By deed dated February 11, 1886, the bondholders' committee conveyed the St. Louis, Arkansas & Texas Railway Company in Texas, which company took possession on May 1, 1886.

DEVELOPMENT OF FIXED PHYSICAL PROPERTY

The company owned and operated about 305 miles of single-track, narrow-gauge railroad, extending from the Arkansas-Texas State line at Texarkana, in a southwesterly direction to Gatesville, all in Texas. It was closely affiliated with the Texas and St. Louis in Missouri and Arkansas, with which it connected at Texarkana. Both companies were under the same control and operated as one system.

The line of the Texas & St. Louis in Texas was constructed as follows:

Big Sandy to Tyler Oct. 1, 1877 21

Texarkana to Mount Pleasant Feb. 25, 1880 61

Mount Pleasant to Pittsburg Apr. 4, 1880 12

Pittsburg to Gilmer June 2, 1880 19

Gilmer to Big Sandy July 12, 1880 15

Tyler to Athens Dec. 26, 1880 37

Athens to Corsicana Apr. 2, 1881 38

Corsicana to Waco Sept. 11, 1881 56

Waco to McGregor July 22, 1882 19

McGregor to Gatesville Oct. 21, 1882 27

Total 305

The line from Tyler to Big Sandy was completed and opened for operation about October 1, 1877, while the corporation was known as the Tyler Tap Railroad Company.

Although the contracts for the construction and equipment of the remainder of the line were made between the Texas & St. Louis in Texas and R. C. Kerens and George B. Hibbard, each for part of the line, for an agreed amount of capital stock and bonds per mile of road constructed, the actual construction was performed by individual contractors, under contract with the Texas & St. Louis in Texas and by company forces. The Kerens and Hibbard contracts are discussed in the chapter on capital financing.

HISTORY OF CORPORATE FINANCING

TYLER SOUTHEASTERN RAILWAY COMPANY

CORPORATE HISTORY

The company was incorporated under the laws of Texas on January 12, 1891, for the purpose of taking over the property, rights, and franchises of the Kansas and Gulf Short Line Railroad Company which had been sold at foreclosure sale and acquired by Louis Fitzgerald, purchasing trustee, on January 9, 1891. Fitzgerald conveyed the property to the company on January 13, 1891, which took possession on June 1, 1891. The company was operated separately until July 1, 1899, when operation was taken over by the Southwestern of Texas, to which company its property, rights, and franchises were deeded on October 6, 1899. Prior to its demise, the capital stock of the company was owned by the carrier.

DEVELOPMENT OF FIXED PHYSICAL PROPERTY

The railroad of the Kansas and Gulf Short Line acquired by the company consisted of a narrow-gauge line extending from Tyler to Lufkin, Tex., 90 miles. The line was changed to standard-gauge between 1895 and 1897, but no extensions were made thereto during the life of the company.

HISTORY OF CORPORATE FINANCING

THE KANSAS AND GULF SHORT LINE RAILROAD COMPANY

CORPORATE HISTORY

This company was incorporated under the laws of Texas on February 18, 1880, to construct, own, and operate a railroad from Tyler, Smith County, Tex., to Sabine Pass, Jefferson County, Tex. On January 22, 1881, it acquired the property, rights, and franchises of The Rusk Transportation Company, from Messrs. Francis, Bonner, et al., who had purchased the same at foreclosure sale. On April 29, 1887, the company sold its property, rights and franchises to the St. Louis, Arkansas & Texas in Texas. Notwithstanding this sale, when S. W. Fordyce was appointed receiver for the St. Louis, Arkansas & Texas in Texas on May 13, 1889, he was also appointed receiver for the property of the company on the same day. On June 23, 1889, A. H. Swanson was appointed co-receiver of both companies. The property of both companies was sold at foreclosure sale to Louis Fitzgerald, purchasing trustee for the bondholders, and deeded to him on January 9, 1891. On January 13, 1891, Fitzgerald conveyed that part of the property formerly owned by the company to the Tyler Southeastern Railway Company. The receivers operated the property until June 1, 1891, when it was turned over to the new company. With the exception of a minute book of stockholders' and directors' meetings, and certain memoranda, no records are obtainable.

DEVELOPMENT OF FIXED PHYSICAL PROPERTY

The property consisted of 90 miles of narrow-gauge railroad, extending from Tyler to Lufkin, Tex., all of which was constructed by the company. The line from Tyler to Rusk, about 40 miles, was completed on December 18, 1882. Parts of the old tram roadbed, formerly owned by The Rusk Transportation Company, were used in constructing that part of the line between Jacksonville and Rusk. The remainder of the line, about 44 miles, from Rusk to Lufkin, was completed about July 1, 1895.

HISTORY OF CORPORATE FINANCING

THE RUSK TRANSPORTATION COMPANY

CORPORATE HISTORY

This company was incorporated under special act of the State of Texas on May 2, 1874, for the purpose of constructing and operating a first-class tram railway or horse-car road from a point on the International and Great Northern Railroad in Cherokee County to the town of Rusk. An amendment, approved February 13, 1875, provided for a grant of 10,240 acres of State land to the company for each mile of road completed. The act granting this land was repealed on January 1, 1882, and no State land was ever received either by this company or its successor, the Kansas and Gulf Short Line Railroad Company. It appears that the company constructed a tram road of some description between Rusk and Jacksonville, Tex., about 17 miles. The property, rights, and franchises of the company were sold at foreclosure sale and were conveyed on January 7, 1879, to Messrs. Francis, Bonner, et al., for the sum of $1,000. On January 22, 1881, these parties deeded the property to the Kansas and Gulf Short Line in consideration of that company undertaking to construct and operate a narrow-gauge railroad between the towns of Jacksonville and Rusk, and further agreed to procure additional right of way for the company and pay it the sum of $7,000 in cash, if the road were finally completed by January 1, 1882. With the exception of a minute book of stockholders' and directors' meetings, no records are obtainable. There is no record of the amount of money expended on the property up to the date of sale.

TEXAS AND LOUISIANA RAILROAD COMPANY

CORPORATE HISTORY

The company was incorporated on July 24, 1900, under the laws of Texas for the purpose of constructing and operating a railroad from Lufkin to Newton, Tex. The company owned and operated a single-track, standard-gauge, railroad between Lufkin and Monterey, about 22 miles, with 4 miles under construction east of Monterey at date of demise. The road was acquired from the Lufkin Land and Lumber Company. It was laid with 35-pound rail and was not ballasted. The company was controlled by the Lufkin Land and Lumber Company, or parties affiliated with it, until the carrier purchased all of its capital stock in August, 1902. The real purpose of the incorporation of the company was to take over the then existing logging railroad belonging to the Lufkin Land and Lumber Company, and to extend the same. On July 7, 1903, the property, rights, and franchises of the company were conveyed to the Southwestern of Texas which took over operation of the property as of July 1, 1903.

HISTORY OF CORPORATE FINANCING