The history of railway development in Kansas

565 78 45MB

English Pages 608

Report DMCA / Copyright

DOWNLOAD FILE

Polecaj historie

The history of railway development in Kansas

Citation preview

THE HISTORY OF RAILWAY DEVELOPMENT IN ’fcANStAS

VOL. I

by Leonard Wilson Thompson

A dissertation submitted in partial fulfillment of the requirements for th© degree of Doctor of Philosophy, In the Department of Economics, in the Graduate College of the State University of Iowa February, 1942

ProQuest Number: 10592961

All rights reserved INFORMATION TO ALL USERS The quality o f this reproduction is d e p e n d e n t upon th e quality o f th e c o p y subm itted. In th e unlikely e v e n t th a t the author did not send a c o m p le te manuscript an d th ere are missing pages, these will b e noted. Also, if m aterial had to b e rem o ved , a no te will indicate th e deletion.

uest. ProQuest 10592961 Published by ProQuest LLC (2017). Copyright o f the Dissertation is held by th e Author. All rights reserved. This work is p ro te c te d against unauthorized copying under Title 17, United States C o d e Microform Edition © ProQuest LLC. ProQuest LLC. 789 East Eisenhower Parkway P.O. Box 1346 Ann Arbor, Ml 48106 - 1346

AOKMOWLlDGM SOTS Much has been written ©bout the promotion of Individual railroads In Kansan, but the effort to combine these into a general history la lacking.

It is to fill

part of this gap that the following pagea have been written# The difficulties to be encountered in chronicling the railroad history of a state arc self evident.

The problem

of what to include, and what not to Include, as well as the emphasis to be placed upon each portion hee not yet been solved*

Ho doubt many th’rtgo have been minimised or omitted

which should have been dwelt upon, and on the other hand, it is probable that some of the subjects treated ore given unnecessary space.

For all omissions the author must take

full responsibility# The omission of numerous chart© end all maps from t&e work ha© been done consciously.

The few charts used are

self-explanatory and a map of the state will afford ©11 the geographical information necessary to follow the various segments of road.

Likewise the author has excluded any

reference to a road outside of Kansas.

To have followed

the vicissitudes of the linos beyond the border of the state would have been the writing, not of a State history, but a system development,

such woo not the purpose of the study*

Because of the nature of this study it hec been necessary to draw material from many sources— newspapers, periodicals, railroad guides and compendium©, government

iii publications, personal letters and interviews, and unpublished data willingly furnished by government and railroad officials. Wherever good secondary accounts exist they have been drawn upon freely and cay indebtedness to the work of others is but inadequately revealed by the acknowledgments in the text* Particular indebtedness is felt toward Dr. Sidney L* Miller of the University of Iowa, under whose encouragement and guidance the work has been undertaken*

Credit is due

•Dr. Chester A* Phillips, Dean of the College of Commerce, University of Iowa, and other members of his faculty who aided with helpful suggestions and criticisms in the form­ ative stage of the work•

In addition to the references

given in the text, I am indebted to the following who have cooperated in many ways by furnishing information, or making information available, necessary for a continuance of the study:

Mr, L. W* Baldwin, Missouri Pacific Lines; Mr.

I* W. Barriger, III, Chief Examiner, Railroad Division, Reconstruction Finance Corporation; Mr. W* 1. Burton, Assistant to Chief Engineer, Missouri Pacific Railroad Company; Mr. A. B* Griggs, Valuation Engineer, The Atchison, Topeka and Santa F© Railway Company; Mr. J, R. Hubbard, Special Representative, The Atchison, Topeka and Santa Fe Railway Company; Mr. W* H. Hulsizer, Valuation, Land & Tax Officer, Union Pacific Railroad Company; Mr* Curtis S. Hunter, Rate Expert, Kansas State Corporation Commission; Mr. C. E. Johnston, President, The Kansas City Southern Railv/ay Company; Mr. E. J. Lev/is, Director, Interstate

Iv Commerce Commission, Bureau of Valuation; Mr. Nyle H* Miller, Kansas Historical Society; Mr. M. G. Moore, St. Louis-San Francisco Hailway Company; Honorable Clyde M. Heed, United States Senate Committee on Interstate Commerce; and Mr. T. CT. 0 *Shaughnessy, Assistant, Executive Department, The Chicago, Rock Island and Pacific Railway Company# To all the aforementioned individuals and to all other individuals as they have aided either by their speech or by their writing, the greatest of thanks are given.

For

the errors that remain, of course I am alone responsible.

V

CONTENTS Chapter I Introduction .......................

*

II Acceptance of the Hallway....... . . . Charters Granted by Territorial Legislatures.............. * * Grants In Aid and Expansion of the Net * ................. 22 Hepre cuss ion. ................. Resume, . . . . ...............• III System Development within the state of Kansas ♦ • . * ................. 70 The Atchison, Topeka and Santa Fe Hallway Company . . . . . . . . . The Dodge City and Cimarron Valley Hallway Company . . . The Garden City, Gulf and Northern......... . . * . , Kansas City, Mexico and Orient Railway Company * * . Kansas Southern Railway Company* • * .......... 181 Salina and Santa Fe Hallway Company* . . * ........ 184 Chicago, Burlington & Quincy Rail­ road Company ...... Chicago, Rock Island & Pacific Railway Company . . . . . . . . . Garden City Western Railway Comoany . . . . . . . . . . . . . Kansas City Southern Hallway Company ............. Midland Valley Railroad Company— Lessee of the V/Ichita. and Midland Valley Railroad Company ....... Missouri-Kansas-Texas Railroad Company . . . . . . . ......... Missouri Pacific Railroad Company . Kiowa, Rardtrxer and Pacific. . St. Louis-San Francisco Railway Company . . . . . . . ......... Ksxisas City, Fort Scott and Memphis Railway Company. . . Union Pacific Railroad Company. . . St. Joseph and Grand Island Railway Company...........

1 8 9 50 61

70 91 91 177

188 199 222 224 228 231 253 354 355 385 418 498

vi IV

Abandonment of Branch and other Rail­ road Mileage in Kansas........... *

520

Bibliography * * . . . • • * * * . * .

563

Appendix Mileage Owned in Kansas, Single Track (Exclusive of Side­ track)* . . . . . . . . . . Kansas Components of Present Day Railway Corporation© Operating In the State. * *

572

592

vi x TABLES

I II III XV V

FI

VII

Growth of Population in Kansas, 1860 to 1930 .............. * .......... *

67

Miles of Railroad in Kansas, and its Three 3ub~RegIons

69

Kansas Incorporations of the Atchison, Topeka and Santa Fe Hallway Company .

72

Mileage of the Atchison, Topeka and Santa Fe Railway Company in Kansas, ,

83

Kansas Incorporations of the Chicago, Burlington & Quincy Railroad Company,

189

Acquisition of Mileage In Kansas by the Chicago, Burlington & Quincy Railroad Company, * * • # . . . , * .

191

Corporations Predecessor to th© Present Chicago, Rock Island and Pacific Railway Company: Parent Company and Kansas Incorporations , ...........

200

VIII

Development of Fixed Physical Property of The Chicago, Rock Island and Pacific Railway Company, Kansas *. . 201

IX

Kansas Incorporations of The Kansas City Southern Railway Company . ,• • 224

X XI

XII XIII

Mi3saurI-Kansas-T©3cas--ia Kansas.

.. , 239

Corporations Forming Present Missouri Pacific Railroad— Parent Company and Kansas Incorporations . . . . . . . .

256

Kansas Incorporations of the St* LouisSan Francisco Railway Company , .« • 358 Kansas City, Fort Scott and Memphis Railway Company and its Kansas Predecessors,

38?

XIV

Kansas Incorporations of th® Union Pacific Railroad Company..............419

XV

Kansas Incorporations of the St. Joseph and Grand Island Railway Company , , . . ................... $00

viii XVI

Miles of Line Operated la Kansas* * . * . 561

1 Chapter X INTRODUCTION The State of Kansas embraces within its boundaries the geographical center of th© United States*

Those bound­

aries are defined thus in the Act admitting it as a state:3* "Beginning at a point on th© western boundary of the State of Missouri, where the thirty-seventh parallel of north latitude crosses the same; thence running west on said parallel to the twenty-fifth meridian of longitude, west from Washington; thence north, on said meridian to the fortieth parallel of north latitude; thence east on said parallel to the western boundary of th© State of Missouri; thence south, with the western boundary of said State, to the place of beginning." The State is 204 miles in width from north to south, and slightly exceeds 400 miles in length from east to west*

It

contains an area of 81,318 square miles* Th© Territory of Kansas, formed by / ct of Congress May 30, 1854, embraced, besides th© area of th© Stst© above described, " a H the lends oetween the parallels of 37° and 40° north latitude, westward to the Rooky Mountains, except that part of New Mexico lying north of the thirty-seventh parallel*"2

*[email protected] area of the Territory including what is

now the State of Kansas, was 126,283 square miles.3 It was, with the exception of a small tract later noted, a part of the Louisiana purchase made by President Jefferson from France, April 30, 1803*

2 3

By the terms of

United States Statutes at Lar&e. vol. 12, chap. 20, sec* 1 (1863 }. United States Statutes at Lar&e. vol. 10, chap. 59, sec. 19 (1^4). Statutes* Kansas TerritoryT vol. 1 (1855).

the treaty, France ceded to the United States all the country drained by th© Mississippi and its tributaries to which she had any right or title.

The boundaries

were ill-defined, touching on the south and southwest th© spanish-Mexioan possessions, and on th© east th© Spanish Province of West Florida*

To the west of the

Mississippi it extended northward to Its source, embrac­ ing the entire Missouri River valley, and extended west­ ward-north of the Spanish-Arnerioan possessions across th© Rooky Mountains to the Pacific Ocean and as far north on th© Pacific Coast as th© British possessions.

Its

boundaries on the west and east were not definitely settled between this country and Spain until February 22, 1819, at which tim© a treaty was signed defining those boundaries wherever contiguous to Spanish territory.

Th© final adjust

ment Is given in the Ninth United States Census Report, vol* I, pp. 573-4, as follows: "April 30, 1803, by treaty with France the province of Louisiana was ceded* Its western boundary, us finally adjusted, February 22, 1819, by treaty with Spain, ran up th© Sabine River, to and along th© twenty-third meridian (100th Green­ wich ), to and along the Arkansas River, to and along th© Rocky Mountains, to end along the twentyninth meridian (106th Greenwich), to and along the forty-second parallel to th© Pacific Ocean* Its northern boundary was conformed to th© boundary established between the British possessions and th© United States. On the east it was bounded by th© Mississippi River as far south as the thirtyfirst parallel, where different boundaries were claimed. The United States construed the cession of Franc© to include ©11 the territory between th© thirty-first parallel and the Gulf of Mexico, and between th© Rivers Mississippi and Perido, the letter of which is now th© western boundary of the State of Florida. Under this construction of the

3 cession, th© Province of Louisiana is now covered by those portions of the States of Louisiana, Arkansas, Missouri, Iowa, Nebraska, Oregon, Minnesota, west of the Mississippi, and Kansas (except the small portion thereof, south of th® Arkansas River and west of the twentythird meridian *lQQth Greenwich*); by the Territories of Dakota, Montana, Idaho, Washington, and that known as the Indian country; and by the portion of the Territory of Colorado lying eest of the Rocky Mountains and north of the Arkansas River, and all the Territory of Wyoming north of th© forty-second parallel end that portion of th© Territory of Wyoming which is south of that parallel and east of th© Rocky Mountains. In 1800, however, the *Province of Louisiana* had been ceded to Spain by France, Spain claim­ ing that she ceded to Franc© no territory east of th© Mississippi River except th© ’Island of Hew Orleans*, and also contending that her province of West Florida included all of th© territory south of the thirty-first parallel and between th© Perido and Mississippi Rivers, except the ’Island of Hew Orleans.,rt Under th© terms of th© Spanish treaty of 1819, the western boundary was defined as above stated and, in con­ sideration of the relinquishment by the United States of her claims to Texas, Spain ceded West Florid© (now Alabama and Mississippi) and relinquished to th© United States all claim to territory lying south of the thirty-first parallel and east of the Mississippi*

Thus, that portion of Kansas

lying west of th© twenty-third meridian and south of the Arkansas River was ceded to Spain*

On the achievement of

independence by Mexico in 1824, It passed into th© posses­ sion of that Republic.

Texas, on gaining her independence

In 1836, claimed it as pert of her domain, which claim was subsequently confirmed by the treaty between the United States and Mexico at the close of th© Mexican Aar, February 22, 1848.

It finally became e p rt of the

4 Government domain by purchase, it being a part of the territory ceded to the United states by Texas in 1850* Kansas is a relatively level plain, gently slop­ ing from an elevation of around 4*000 feet at its western border to about 750 feet at its eastern border*

There ere

no striking physiographic features such es mountains or precipitous escarpments.

Because of th© broad level

topography of the plains, however, certain minor features are noticeable, such as minor erosional forms along the streams in th© High Plains# th© esearprnent of th© High Plains, and the ridges of resistant rock In eastern Kansas. Except for th© Ozark Highlands in the extreme southeastern corner of the state, only two principal physiographic provinces enter Kansas, th© Great Plain© and the PrairiePlain©.

With the exception of the Kansas and its Smoky Hill

branch, most of th© streams of the ©tat® flow from the north­ west to the southeast. Lying as it does in the geographical center of th© United States, far removed from any large body of water, and extending 400 miles athwart one of the main paths of interchange of air current© between the tropics end polar regions, Kansas has a typically continental climate*

It is

characterized by wide extremes of temperature, great varia­ tions in rain and snowfall from season to season* much sun­ shine, and dry bracing air, with a good wind movement. Th© topography of th© eastern part consists of rolling prairies broken by wooded streams, the average

5 elevation being a little less than 1,000 feet.

This

elevation increases gradually to the treeless plain of the west, reaching a maximum of slightly more than 3»5GG feet near the Colorado line* Precipitation decreases with remarkable uniform­ ity from 42 inches in the southeastern counties to just a little more than 1$ inches along the western boundary*-** If we assume than an average precipitation of twenty inches or more is "safe” for crop production, we find that, with the exception of about 25 counties in the western part of the state, Kansas should be a dependable farming state; precipitation in the western portion is, however, somewhat irregular in occurrence*

Torrential

downpours of 4 to 6 inches have occurred in almost ©very county and there are rather numerous instances in extreme western counties of 24*hour falls of 6 to 8 inches.

Occa­

sionally periods of drought or periods of abnormally heavy precipitation will persist for several years, with corre­ spondingly wide variations in crop yield*2 Until the state-wide meterologlcal record was begun in 1887, records of droughts were fragmentary; th© most notable droughts prior to thit year occurred in I860, 1864*65, and 1874— the last mentioned being known to old * o A

U* S* Department of Agriculture, Weather Bureau. Summary of the Climatoloftioal Data for th© United States. Kansas. P*

U* 3* Department of Agriculture, Weather Bureau* Climatic Summary of the United States. 3ec* 30* Western Kansas, p* 1#

settlers as "grasshopper year."^

Th© years 1885-1887*

inclusive, were "dry years" for much of the state***

Other

droughts of marked severity affecting much of the state occurred in 1901, 1911, 1913, 1917, 1918, 1930, and 1934.3 Kansas was organized as a territory in 1854, the Kansas-Nebraska Bill passing on May 30 of that year*

This

bill provided that Kansas and Nebraska were to b© organized as two separate territories, with th© provision that th© question of slavery should be settled by popular sovereign­ ty*

The South saw in the passage of this bill an Intention

on the part of the Federal government that Nebraska was to be & .free state, Kansas a slave state.

The South felt justi­

fied, therefore, in doing everything possible to discourage wfree-staters" from coming into Kansas#

The North, on th©

other hand, determined that Kansas should be free, sent nu­ merous organized colonies of settlers into the Territory*

Th©

South was able to ©Jiert pro-slavery influence in Kansas through th© adjacent slave state of Missouri#

Missourians

were able to step across th© border, stake out claims, and return to Missouri*

They participated freely— even fraud­

ulently— in th© Territorial ©lections, coming across the border in wagon loads, voting and returning to Missouri. They were able to control th© Territorial Legislature until ■** U# 5• Department of Agriculture, Leather Bureau# Surmary of th© Climatologioal Data for th© United States# Kan­ sas * p# 2m 2 Board of Railroad Commissioners, Kansas, Sixth Annual o Report, p. 5 (1888). Kansas State Planning Board, Progress Report# p, 7, (September, 1934)*

1858, th© free-stete party first carrying e stat© election in the fall of 1857. Kansas was admitted into the Union under th© Wyandotte Constitution, on January 21, 1861*

ft the time

of admission there were five miles of railroad in the state a line from Blwood to w&thena had been opened in I860 by the Marysville or Palmetto & Roseport Railroad Company*

8 Chapter II ac ce pt anc e of t h e r a i l w a y

Starting about 1822, traders began to cross Kansas to reach Santa Fe, th© principal trading point in northwestern Mexico*

The Santa F© trail was established,

and travel rapidly increased over it*

Westport, now a part

of Kansas City* Missouri, because the starting point for traders*

In 1342 emigrant trains began to undertake th©

long journey to the Oregon country, passing through north-* eastern Kansas*

In 1848 gold was discovered in California,

and the transcontinental migration that followed was respon­ sible for making vast numbers of people acquainted with th© area now included in the state of Kansas, for Kansas wbb on the main route of travel*

Thirty thousand people ore estim­

ated to have crossed Kansas enroute for the Pacific Coast in 1849, end double that number in 1850*^ /t the time Kansas was organized as © territory in 1854 the means of transportation west of the Mississippi River were extremely limited and ©low*

Immigrants came by

water from St. Louis to wh^t is now Kansas City, from which point the trip westward had to be made by wagon over a country through which satisfactory wagon roads had not yet been established*

Under such conditions th© need for better

transportation facilities early engaged th© attention of the Kansas pioneers* ^

Kansas State Planning Board, People of Kansas* p. 20, (October, 1936}*

9 Charters Granted by Territorial Legislatures Th© first Territorial Legislature, meeting in 1$55* granted charters to live railroad companies; these were The Kansas Central;-** the South Kansas;^ the Leaven­ worth, Pawnee & Western;3 the Leavenworth 8c Lecompton,^ and the Kansas Valley.^

among the incorporators or The

Kansas Central were John Calhoun, S. D. Lecompte, A. S. White and John Duff#

This railroad was chartered to serve

from "Any point on th© Missouri River to any point on th© Western boundary of Kansas Territory*'* and extensions:

For its branches

"To the northern boundary of said terri­

tory to a point or place where the Nebraska City and Marys­ ville Railroad shall cross the line dividing the terri­ tories of Kansas and Nebraska."

Th© original capital stock

was fixed at §1 ,000,000 and could be increased "up to amount expended on account of said road*" The South Kansas Railroad Company was empowered to build a main line from th© 'Missouri State line due west of Springfield, Missouri, thenoe to extend the southern branch of the Pacific Railroad in the direction of California to the western boundary of the territory*"

a. J* Dorn,

William J* Godfroy, James M. Linn, Joseph 0 , Anderson and Others were named as incorporators. I 5 }

t 5

The capital stock

Statutes of Kansas Territory, vol. X, p. 904 (1855). Ibid.. 0 . 908. IbM. p. 914 . issr.! p. 921 . I M i - , p. 9-6.

10 was fixed at #3*000*000; construction was to begin within nine years* ©ad th© line had to be completed not later than twenty years after receiving the charter. W* H* Russel* J. M. Alexander, s. I). Lecompte, E* H< Dennis and 0. H. drover were among the incorporators of the Leavenworth, Pawnee & Western Railroad which was to build a line between the points named in the charter.

They

were to begin the line within five years and complete it within twelve years thereafter.

In 1857 a supplemental Act

was passed, authorising this company at any time within nine years to commence and continue to constzmct branch roads "from any point on th© main line to the west or south line of the s t a t e . T h e name of this road was changed by ©n Act of th© Legislature of 1S61* to th© Leavenworth, Port Riley & Western Railroad Company*2

On June 6, 1863*

the name was again ©hanged to Union Pacific Railway Company, Eastern Division,^ and on March 3, 1869 the road assumed th© name of th© Kansas Pacific Railway Company,^ this company going Into receivership November 21, 1876.^

On

January 24* 1880 th© Kansas Pacific Railway Company con­ solidated with other companies to form The Union Pacific Railway Company*^ ^

Title to th© property of this company

Lav/a of Kansas Territory, p. 218 (1857)* Laws of Kana as 7 nV 238 (1861). 3 Interstate Coiimerce Commission, 44 Valuation Reports 98 , (1934)* (Cited hereinafter as "Valuation Reports." ^ United States Statutes et Lar&e, vol. 15, P* 348 (1869)* f 44 Valuation Reports 1^58^ 6 Xbi&.. p. "97* 2

11 passed to th© Union Pacific Railroad Coxapany, the present owner, at foreclosure sale terminating a receivership in** stituted October 13, 1893.* Th© main line of the Leavenworth and Lecompton Railroad Company was to serve between the points named, end, the privilege was accorded of constructing "branches to any point in any of th© counties through which the road shall pass."

It was to begin construction within five years

and complete the road within ten years ©fter receiving its charter.

H* D* KcMeekln, John A, Halderman, R. R. Bussell,

Daniel Woodson, 3. D* Lecompte, and C* H. Grover were among th© incorporators of this road. The first directors of the Kansas Valley Railroad Company were Thoms Johnson, H* J. 3trickier, /. J. Isaacs, Rush Elmore, John P. Wood, Johnston Lykins, Andrew McDonald, Thomas H* Stinson, and Cyprian Chouteau*

This property was

to be constructed from the "boundary of Missouri, south side of Kansas River at Western terminus of Pacific Railroad, and to pass through Lawrence, Benicia, Douglass, Lecompton, Tecumseh, and Pawnee; with branches to any point in any of the counties through which the road shall pass*" Sixteen charters were granted to railroad compa­ nies by the legislature of 1857*

The Grand Central Gulf

Railroad Company^ was to build from the Northern to the Southern boundary of the Territory" with branches as seem ^ 2

kU Valuation Reports 97* Laws of Kansas Territory, p. 189 (1857).

12 desirable*

Governor John W* Geary, Samuel J. Jones,

John Calhoun, J* A* Halderman, P. T* /bell, end a number of others were named as the incorporators# The Marysville or Palmetto and Roseport Railroad Company1 was chartered to build a line of road from "Marys­

ville or Palmetto to Roseport 00 as to connect with th® Hannibal and 3t# Joseph Railroad0 and "to build branches to any point in ©ay county through which it passed*"

The

Atchison and Fort Riley Railroad Company^ was to construct a road between the points named.

P. T* "bell and J. H.

Stringfellow were the chief promoters of this project*

Th©

Missouri River and Rocky Mountain Railroad Company? was to begin construction "On the Missouri line— -any point between the Delaware and Kansas Rivers to any point on the western boundary of the Territory," with the privilege of construct­ ing a branch line to th© southern boundary*

John Calhoun

and D* / # N# Grover were instrumental in obtaining the charter for this road.

The charter of th© Kansas Central4 was

changed in 16$7 to permit the roed to assume th© name of the Delaware and Lecompton Railroad Company with the power to construct © road between Delaware and Le compton.

Th© Min©

Hill Railroad snd Mining Company? was incorporated to build "From within twenty miles of Council Grove to Leeompton via Topeka and Lecompton." i 3

4 ?

Ibid*. p. 193* M I * > p. 19s. Ibid.,

0 .202.

Ibid*, p. 207. Ibid., p. 208.

Th© Atchison and Palmetto City

13 Railroad Company! we© to build a line of road from

tchison

to Palmetto City on the Blue River* A measure supplemental to an Act entitled, "An Aot to Incorporate the Leavenworth, Pawnee and Western Hailroad Company,"2 was approved by the second Territorial Legislature, declaring that the company could, within nine years, begin the "construction of a railroad, to be called the #Bouthera Branch and Gulf Railroad,* beginning on the main line and extending southwestwardly to terminate on the southern boundary of the Territory of Kansas."

The company

was also granted the privilege of constructing branches to the western boundary and ©Iso to the northern boundary of the territory.

The Act provided that in addition, "Th© said

company shall have, hold and enjoy th© free right and privi­ lege of keeping and maintaining a public ferry ©cross the Missouri Biver, at the point of terminus of said road on said river; and also across other streams on th© line of said road, where said company may deem such ferry prefer­ able to a bridge, or until such time as said company can procure bridges." The Eastern Kansas and Gulf Railroad Company^ was to build a lineof railroad

"Southof

th©Kansas

to any point on th©Southernboundary." Thomas

River

Johnson,

Johnston Lykins, John 0. McCoy, David Lykins and A • K. Coffey were instrumental in securing the charter* i

Ibid., p* 214*

5 >

ifria* * P.

218.

Ibid.. p. 219*

The

14 Palermo and St* Joseph*- and the Palermo and Lecompton 2 Railroads* were chartered by this session of the Legislature ■

with th© powers, conditions, and provisions of an /ct entitle ©d "An Act to incorporate the Central Railroad Company*

The

Prairie City and Missouri State Line Railroad Comp©ny3 was chartered to build a line between the points named and also two branches from Prairie City to say point in Kansas Territory.

The /tchison and Leoompton^ was also chartered

to build between the points named. The Central Railroad Company of Kansas Territory5 was chartered to build from Roseport to Leoompton, thence down th© Heoaho Valley to the border of Kansas Territory. Aristrides Bodrique, Daniel Woodson, W. P. Richardson and

John w. Forman were among the incorporators, The Missouri River and Hem&ha Valley

R a i l r o a d ^

was chartered through th©

efforts of Wilson Shannon, John Calhoun, R. B. Rees, L. J. Eastin and their associates to build a road from © point in Doniphan county on th© Missouri River weatwardly, thence toward Fort Kearney.

The St. Joseph and St. George Rail­

road? and th© St. Joseph and Topeka Railroad® Companies were chartered to build between the respective points ncmed in their title. 1 2 3

Ibid.. p. 224. Ibid. P. 223. TFid. p. 224 •

4 fETd.

p.

8

p. p. p• p.

I7 S B : iblff. Ibid.

229. 233* 237* 241• 247.

15 It Is to be noticed that th© principal incorporators of the proposed railroads during the first three years of the Territorial existence of Kansas were prominent proslavery m©n--Caihoun, Woodson, Lecompte and many others* In the election which took place in the fall of 1857, the free-state party came into power, and a new group of rail­ road promoters cam© to th© front*

The legislature of 1858—

the first controlled by th© "free-statersff— -granted charters to a number of railroad companies, in every instance th© incorporators being members of th© free-state party. A number of railroads were incorporated by the legislature of 1858.

The Elwood, Palermo end Fort Riley

Railroad Company*- was to construct a road between the points named in th© title*

This Incorporation Act named forty in­

corporators, among whom were 0. K* Holliday, Thomas Ewing Jr., J. H* Lane, H. Miles Moore, J. P. Root and A* L* Lee.

7Governor lohn A* Martin*

It met with hearty and enthusiastic popular approval,

and th© following call was prepared and circulated for signers by Col* 0* K* Holliday of Topeka, who was one of its most enthusiastic advocates:** Railroad Convention nA convention will be held at Topeka, Kansas on Wednesday, th© l?th day of October, I860, for th© purpose of devising a system of railroad land grants for the territory, to be petitioned for at the next session of Congress* A full representation from all parts of the territory is earnestly solicited*”

The convention was held as advertised2 and th© i

Freedom*© Champion* tchison, August 18, I860* wIlTer^^Sanie 1 W'•', Armais of Kansas, p* 249 (1875)*

23 toll owing resolution was adopted :*• "That a memorial be presented to Congress ask­ ing an appropriation of public lands to aid in tJae construction of th© following railroads in Kansas: First, a railroad from th© western boundary of th© State of Missouri where the Osag© Valley & southern Kansas Railroad terminates, westwardly, by th© way of Emporia, Fremont, and Council Grove, to the Fort Riley military reservation; second, a railroad from the city of Wyandotte (connecting with the P. G# R. railroad and the Pacific railroad) up th© Kansas valley, by way of Lawrence, Lecompton, Tecumseh, Manhattan, and th© Fort Hiley military reservation, to th© western boundary of the territory; third, a railroad running from Lawrence to th© southern boundary of Kansas, in th© direction of Fort Gibson and Galveston bay; fourth, a railroad running from Atchison, by way of Topeka, through th© territory in th© direction of Santa Pe; fifth, a railroad from Atchison to the western boundary of Kansas," On March 20, 1060, Mr* Wilder states:

"Iron

arrives In Kansas, and track-laying begins on th© Klwood and Marysville Railroad*

This is th© first railroad iron

laid down on Kansas soil*"2 The Elwood Free Press of April 28, 1860 carried this items ^ "On Monday last, April 23d, the directors of th© Blwood and Marysville H* R# placed on their track the locomotive *Albany,* an engine which had been used from Boston to th© Missouri, as railroads have successively stretched their length toward the setting sun* "On Tuesday, several cars were brought across th© river, and a large concourse of people gathered to celebrate the aothel opening of the first section of the Great Pacific Road* Gol, M, Jeff* Thompson, President of the Blwood and Marysville road; Willard P* Hall, President of th© St* Joseph and Topeka road; Gov* Robert M* Stewart, of Missouri, and others, addressed th© crowd on the great topic of th© day*" J Glick, George W*, op* Pit. ~ Wilder, Daniel W., op, cit*, p. 241* Ibid*, p* 246*

24 On «Tune 13, I860 ground was broken at Atchison for the construction of the Atchison and Pike»s Peak Kailt road and on «Tuly 25, 1860 ground was broken at Kansas City, Missouri, for the construction of the Missouri Pacific Rail­ road*^

Exeept for these beginnings, the Civil War brought

railroad construction in Kansas to an almost complete halt* Aside from the five miles of road from llwood to Wathena, which was completed on April 28, I860,** by the Marysville or Palmetto and Roseport Railroad Company^ (the Blwood and Marysville Railroad was not a legally chartered company but simply a name used locally to designate the termini of the roed), the only other track laid in Kansas while the Civil War was in progress, was on the Kansas Pacific from Kansas City to Lawrence (1864)^ a distance of 39 miles and from Lawrence to Topeka, 2? miles in 1865*** This dearth of construction is not strange because % * * from the very outset Kansas was the battle­ ground between th© North end south, and the ©vents of its early history are inseparable parts of the Nation*® history* In fact, unlike every other Terri­ tory, it was settled, not so much by men who wanted to farm, as by men who wanted to fight for or against the extension of slavery; and herein lies the main­ spring of the otherwise improbable fact, that Kan­ sas furnished more soldiers than it had voters* It * 2 3

Ibid.. p. 248. Idem. Andreas, A. T*, History of the State of KansasT p, 241 (1883)*

4 Laws of Kansas Territory* p. 193 (1857)* 3 Atchison, Topeka and Hants F© Railway Company, Chief Engineer’s Office, Topeka, Kansas, file 2Q5*00Qf March 25, ✓ 1925. 6 Ibid*

24 On June 13# I860 ground was broken at Atchison for the construction of the Atchison ©ad Pike's Peak Rail1 road and on July 25 $ I860 ground was broken at Kansas City, Missouri, for the construction of th© Missouri Pacific Rail­ road*2

Except for these beginnings, the Civil War brought

railroad construction in Kansas to an almost complete halt* Aside from the five miles of road from llwood to ¥/athena, which was completed on April 26, 1860,^ by the Marysville or Palmetto and Roseport Railroad Company^ (the llwood and Marysville Railroad was not a legally chartered company but simply a name used locally to designate the termini of the road), the only other track laid in Kansas while the Civil War was in progress, was on the Kansas Pacific from Kansas City to Lawrence (1864)^ a distance of 39 miles and from Lawrence to Topeka, 2? miles in 1865*^ This dearth of construction is not strange because % * * from the very outset Kansas was th© battle­ ground between the Horth and south, and the events of its early history are inseparable parts of the Ration's history# In fact, unlike every other Terri­ tory, it was settled, not so much by men who wanted to farm, as by men who wanted to fight for or against the extension of slavery; and herein lies the main­ spring of the otherwise improbable feet, th^t Kan­ sas furnished more soldiers than it had voters* It * 3

Ibid.. p. 248.

IAndreas, S*

A* T*, History of the State of Kansas, p, 2^1 (1883)* ^ Laws of Kansas Territory, p# 193 (1857)* 3 Atchi son, Topeka and Santa F© Railway Company, Chief Engineer's Office, Topeka, Kansas, file 205*000T March 25, , 1925* 5 Ibid*

25 supplied 20,097 men, or 3,433 more than its quota* In every one hundred families, not less than seventyfive had a representative in the ©rmy; and, as a rule, only the wife and little ones were found on the ram*** During the War the energies of the people had been devoted to the conflict, and not to intensive develop­ ment; the population of the state, however, showed continual increase*

In 1855 the population of th© territory was

placed at 8,60152 In i860 It had Increased to 107 ,206 ,^ and by the close of the War in 186$ Kansas had a population of 140 ,179 *^

The indecision and lassitude succeeding the

close of th© War represented a natural reaction; after a prolonged tension of mind and th© heavy physical drain incident to the struggle for self-preservation, such spirit was almost inevitable*

Th© government no longer furnished

a market for

hay, com, pork, and flour. There were no

railroads to

tempt a surplus from the soil by furnishinga

transportation to market*

Only on© railroad convention had

been held since 1660 and that was in June, I864 , when the eastern border counties held a meeting at Paola to ask for a land grant and appropriation for © railroad from th© Missouri River to th©

Gulf*^

th© army and survived

sought homes andopportunity In the

South or ventured farther West* 1

Many of th©men whohad

entered

Th© development of the state

State Board of Agriculture* Centennial Edition, Fourth Annual Report* p» 22 (1876)* 2 wilderV’^Daniel W., op* cit*, p* 44* FifteenthCensus of''the United States * Kansas* p. 399 (1930)* 4 Sts to Census* In' senate ? o u r E iis651 * 5 wilder, Daniel W*, op* oit.» p. 376*

26 seemed at a standstill*

Thex*e had been some companies

organized for the purpose of constructing railroads, but it was difficult to obtain capital for th© purpose* In the light of the above conditions and the sub'* sequent results, no other single Act of th® legislative assembly of 1866 so served th© general welfare of th© state as that assigning th© proceeds from the sal© of 500,000 acres of public lands granted by the Federal government to th© state for specified internal i m p r o v e m e n t T h i s Act provided that such proceeds be donated to the Northern Kansas Railroad Company; the Kansas & Heosho Valley Rail­ road Company; the Union Pacific Railway, Southern Branch; and the Leavenworth, Lawrence & Fort Gibson Railroad Company# The construction of these lines coincident with the con­ struction of th© Union Pacific Railway, Eastern Division and the Central Branch Union Pacific, both of which received aid from th© Federal government, gave both stability and impetus to agriculture and commerce at a critical period in the statedevelopment# At th© time this Act was passed much adverse criticism appeared concerning the disposition of the lend* The United States Congress, by Section 8, of an Act approved September 4, 1641, entitled ">n

et to appropriate proceeds

of sales of public lands and th© granting of preemption rights,” granted to each state then and thereafter to be admitted into the Union ”500,000 acres of land for purposes *

Laws of Kansas* chap* 61, sections 1*10 (1666),

27 of Internal improvement*"^

Up to the year 1664, the several

states had disposed of lands received under this legislation in various ways*^

Those Kansans who asserted that the 500,-

000 acres of land belonged to th® publio-school fund based their claim upon the words in Section 7 of th© ordinance which is the prelude to the Wyendott constitution, tinder which Kansas became a state#

That ordinance attempted to

name the terms upon which Kansas would relinquish the right to tax government lend after state sovereignty was establish­ ed; and two of those conditions were set forth in Sections 5 and 7— that "all mines, with th© lands necessary for their full us©, shall be granted to th© state for works of public improvement,” and "that the 500,000 acres of land to which the state is entitled under the act of Congress entitled 9An Act to appropriate the proceeds of the sales of public

lands and grant preemption rights,* approved September 4, 1841, shall be granted to the state for the support of ooumon schools#”3 To the conditions thus set forth in th® ordinance Congress did not assent, but in Section 3 of th© Act of Admission whereby Kansas became a state is found these word®i

"Nothing in this Act shall be construed as an assent

by Congress to all or any of th© propositions or claims ^

3

United States statutes at Large> vol# 5, PP* 453-455

j xstxn Federal Coordinator of Transportation,

Public Aids to Trans nortation. vol* XI, p* 9 (1938)* Senerai Statutea of Kansas* p. XXXIX (1935)*

28 contained in the ordinance of said constitution of the people of Kansas,1 . * ♦ but the following propositions are hereby offered to the said people of Kansas for their free accept­ ance or rejection, which, if accepted, shall be obligatory on the United States and upon th© said State of Kansas, to wit,” and here follow six different propositions and con­ ditions, but xione of them include the 500,000 acres of land given by th© Act of September 4* 1841, for internal improve­ ments .

And th© fact that Kansas was organized as a state

under this act of Congress forever berred the ordinance interpretation as to th© disposal of the 500,000 acres of land; and by inference, therefore, the state must have accept­ ed it for "internal improvements*"

Railroad construction

is to such an extent public enterprise and a phss© of "internal Improvements" as to be under legislative control, and, there­ fore, worthy of state and local aid. That it had been th© accepted interpretation by others in Kansas prior to the introduction of th© bill apportioning it among certain railroads is evident from the fact that bills had been introduced in previous legislatures to dispose of the land for internal-improvement purposes, especially for the construction of highway bridges. In fact, on the 11th day of January, 1866, Senator Legate, of Leavenworth, introduced Senate Bill Mo. 14,2 authorizing the sale of th© 500,000 acres, th© proceeds 1

2

Ibid.. p. LXXVIIX* Senate Journal, p. 39 (1866).

29 to be devoted to the construction of highway bridges over the Missouri River at Leavenworth and over the Kaw Hiver at Wyandotte| Desoto, Lawrence and Topeka« Senate Bill Ho* L9,1 introduced by Senator Manning, ,fA» act donating the 500,000 acres of land donated by Con­ gress to the state to aid in the construction of certain railroads,Tt was introduced on the l?th day of January, 1666, and experienced a stormy history*

It had its origin among

the members of the senate and house from northeastern Kansas* Th© original Pacific railroad bill vs/hich finally passed Congress in July, 1862, provided a grant to th© Hannibal and St# Joseph Railroad Company of Missouri, which assigned its rights under th© act to th© Atchison and Pike*a Peak Railroad Company#

2

This section of the bill was unsat­

isfactory to Kansans of th© Hebraska border counties, who had hoped to have a railroad built directly west from Bt* Joseph to connect with th© Union Pacific, Eastern Division— this railroad having been designed originally to turn north­ ward from Fort Riley to connect with the Hebraska Union Pacific near Port Kearney*

To give th© people of th© border

counties a chance for their road still, Senator John B# Henderson of Missouri offered an amendment— which was adopt­ ed— to the bill before th© United States Senate, providing that if an actual survey should show it desirable and th© consent of the Kansas Legislature could be obtained th© 1

2

Ibid.. p. 92 . United States Commissioner of Railroads, Annual Report, p. 62 (1883).

30 road should b© continued directly west from St. Joseph.1 This amendment failed to accomplish its purpose, and great indignation followed.

Th© members of th© Kansas Legislature

from th© northern tier of counties effected a combination with the senators and representatives from counties along the Neosho River, from Junction City southward, and counties along th© ©astern border from Kansas City southward, and as a consequence the Manning bill was passed in the Senate, dividing the 500,000 acres among three railroad companies. The Leavenworth, Lawreno© & Galveston railroad was a slumbering project and its friends wanted a portion of the land.

Lawrence at that time was zealous of its

cultured civic conscience and constitutional construction, and a public meeting of leading citizens assembled to protest against the passage of th© bill*

Th© proceedings of the

meeting, containing startling statements end denouncing the unconstitutional raid upon the publio-sohool lands, etc., were published in John Speer1© Tribune.^ and a large bundle of these papers was sent to Topeka to be distributed among the members of th© Legislature.

It happened, however, that

the members of the Legislature who were opposed to the measure had, on the same evening, assembled in caucus; and, by getting the two members from Topeka to join them, they had from e majority of the house members an agreement never to vote for this bill--disposing of the 500,000 acres as ^ 2

Session Laws. Kansas, chap. 61, pp. 142-146 (1866). 3 e© editorial in the Tribune of January 25, 1866.

31 it did— or for any other like disposition of that acreage* Th© members who lived along th© line of th® proposed Leavenworth, Lawrence & Galveston railroad were a part of this caucus*

Before daylight the managers of the

bill conceded to cut th© lands into four parts and let the Leavenwortht Lawreno© & Galveston Railroad C ompany in* all of which news did not get to Lawrence until Speer*© Tribune was enroute to Topeka by rail*

j\b

soon as Speer learned of

the turn taken* he telegraphed to Topeka to have his extra Tribunes suppressed# or destroyed before they could be delivered to their intended destination*

This was done,

and Speer hired & saddle horse to carry him to Topeka where he aarrived not long after the train— there assisting to adjust the unconstitutional act to th© constitutional scruples of the Lawrence objectors; the essential modifi­ cation being that the Lawrence railroad receive one-fourth ©f th© land* which it did*

Thus the Federal grant did

breathe the breath of life into four railroad promotions# the constitutional objectors being the minority not served by the prospective beneficiaries* The original senate bill dividing the land among three railroad companies was defeated in th© house, and subsequently, February 2, Senator Barber, from Lawrence, Introduced a new bill, Senate Bill No* 105,^ dividing the land among the four railroads previously named, and that bill became law. *

Session Laws* Kansas, chap* 61, p* 142 (1866)*

32 Thus the construction of railroads was revived and charter grants were resumed.

In fact, during the following

57 years 1,112 charters were recorded in the office of the Secretary of State; 900 of these projects appear to have heen but paper roads, leaving 212 corporations that at one time or another actually constructed and maintained a railroad in the state Of the so-called paper roads we find no uniformity in their charters*

From 1865 to 1869 there were 54 roads

chartered that were never constructed; from 1870 to 1874* 154; from 1875 to 1S79* 87; from 1880 to 1884* 117; from 1885 to 1889* 3393 from 1890 to 1894, 35; from 1895 to 1899, 26; from 1900 to 1904, 22; from 1905 to 1909, 33; from 1910 to 1914* 175 from 1915 to 1919, 6; and from 1920 to 1924, 5#

In addition* there were 3 charters for which filing

dates were not given.

Neither does this summary include

the 54 Territorial roads, few of which reached the con­ struction stage. Following the Civil War, the railroads became zealous press agents for th© state, broadcasting superlative descriptions of its resources throughout th© nation and in foreign lands*

Land speculators, town-site promoters,

and the local press added their glowing account to the 1

An alphabetical list of the charters, together with amendments, consolidations, cross-references and guide to th© volume of the Corporations of Kansas, secretary of State, ha© been prepared by the author end placed in the Kansas State Historical Society Library, Topeka, Kansas

33 already abundant volume Of reputed advantages, while many individual cities and counties subsidised publicity programs as well as the prospective roads*

But ~YanT 256. Board of Railroad Coiiaissioners, Kansas, Fourth Annual Report« p* 5 (1886)* £dem*'~ 45 Valuation Reports 438*

42 la addition, on© corporation bad received #500,000 of bonds In exchange for stock as early as 1865. The Atchison, 'Topeka and Santa F© Hallway reports,^ that certain of its predecessors received #4,833,300 in exchange bonds as well as #623,000 par value bonds as gifts from Kansas sources.

Th© report also declares, "The minute

books state that in some instances the exchange of stock for bonds was made with th© understanding that, upon com­ pletion of the road to certain points, the capital stock would b® returned without consideration."

p

The earliest direct Federal grants to railroads which are of concern to Kansas were those under th© Act of July 1, 1862,^ to the Kansas Pacific Railway Company^ and th© Central Branch Union Pacific Railroad Company.^ These were allotted alternate sections within 10 miles on each side of the track and a 400-foot right-of-way in aid of construction.

Because of the magnitude and

Interstate Commerce Commission, Reports. vol. 127, PP* ^ 277-278 (1928). Hereinafter cited as "I. C. C." \ Ibid., p. 282. United States Statutes at large, vol. 12, p. 489 (1863). 4 Chart©red by the' Territorial Legislature of Kansas on August 30, 1855 ns th© Leavenworth, Pawnee and Western Railroad Company; name changed to Union Pacific Hallway Company, Eastern Division on June 6, 1863 end to Kansas Pacific Railway Company on March 3, 1869* Union Pacific Railroad Company, Valuation, Land and Tax Department, Omaha, Nebraska, Unpublished Report. August 15» 1939* r > The grant was to th©'"Hannibal and At. Joseph Railroad Company of Missouri, which assigned its rights under th© Act to the Atchison and Pike*s Peak Railroad Company. The name of the latter was changed to Central Branch Union Pacific Railroad Company in 1867. United Btates Commissioner of Railroads, Annual Report, p. 62 (1883).

financial hazard of the undertaking, the original grants were enlarged by th© amendment of July 2, 1864^ to include the alternate sections v^ithin 2 0 miles on each side of th© line* For th© same reason, neither of these roads was required to transport Government mail, troops, or property at reduced rates as a consideration for the grants* Xhider the provisions of th© Act as amended, these roads were ©Iso aided by the Federal government through loans of its bonds in the amount of $16,000 per mile.^ The Kansas Pacific was authorized by th© original act to construct a line from Kansas Olty, Missouri, to a junction with th© Onion Pacific in Nebraska at th© onehundredth meridian; but, by th© amendments of July 3, 1866,^ and March 3, 1869#^ it was authorized to build west to Denver, Colorado, and thenc© northerly to a junc­ tion with th© Union Pacific at Cheyenne, Wyoming*

The

amendments provided that the railroad should receive lands in aid of the entire mileage over th© new rout© at the same rat© per mil© as had been authorized over the original rout©, but that th© total Federal bond aid should not exceed the amount the railroad would have received, had ^ 2 3 4

United States Statutes at Large* vol. 13, p. 356 (1864)* Federal' ’boord£nSr€or~oi'"Trensportation, Public Aids to Transportation * vol. II, p. 13 (1938). Ignited'StatesStatutes at Large, vol. 12,pp. 489-496* tfettted Sta tesSt©tut eg' at" Large. vol. 14, p* 79 (1866). United States Statutes et Large, vol. 15, p* 324.

44 It constructed its 11ns to a connection with th© Union Pacific at the oae-hun&redth meridian*1

Th© Kansas Pacific

constructed a line from Kansas City to Denver, 639 miles, and received Federal bond aid for 393 15/16 miles— between Kansas City and a point near Monument, Kansas*

The Kansas

Pacific assigned its rights under the amended act to the por­ tion of th© proposed line between Denver and Cheyenne to the Denver Pacific Railway and Telegraph Company*

The latter

company built a line from Denver to Cheyenne, 106 miles*2 Th© Central Branch Union Pacific constructed 100 miles of tracfe from Atchison to Waterville, Kansas which mileage is now a part of th© Missouri P a c i f i c U n d e r th© original plan this line was to connect with the Kansas Pacific, but th© change in the route of the Kansas Pacific left the Central Branch Union Pacific without a western connection* Two Kansas predecessors of the Atchison, Topeka and Santa F© were aided in th© construction of their lines by Federal land grants.

These were the Atchison, Topeka 4 and Santa Fe Rail Road Company, and the Leavenworth, Lawrence & Galveston Railroad Company, 5 each of which was accorded 1 2

United States Statutes at Large, vol. 14, p* 79* tJnited States Cornmissioner of Railroads, Annual Report, pp. 21, 119, 120 (1683). 3 statement* General Land Office, United States, pp* 10-11 (February 23, 1915). 4 Originally chartered aa: Atchison & Topeka Railroad Company* See First Annual Report. Board of Railroad Commissioners /^Kansas, p. 47 (1883) * 5 Chartered originally as the Leavenworth, Lawrence & Fort Gibson Railroad Company: Se© Laws of Kansas Territory. General, pp. 126-133 (1857-1658)*

45 under the Act of March 3# 1863,1 alternate sections of land to a depth of 10 miles on each side of th© line built. Aided by the grant to it, the Leavenworth, Lavjrenc© & Galveston constructed 143 miles of line from Lawrence to Coffeyvlll©, Kansas, between 186? and 1871, which was sold at foreclosure sale in 18?8 and, after consolidating with th© lines of a number of other companies, was finally pur­ chased by th© Atchison, Topeka and Sants F© Hailway Company in 1899.^

Aided by the land grant to it, the Atchison,

Topeka and Santa Fe Hail Road Company constructed a 469-mile line from .Atchison, Kansas, to the Kansas Colorado line between 1869 and 1872#^

This latter company went into

receivership in 1893 and, under foreclosure proceedings, its properties passed in December, 1893* to th© Atchison, Topeka and Santa F© Railway Company.^ Other Kansas roads receiving Federal aid were: the Union Pacific Railroad Company, Southern Branch,5 and the Northern Kansas Railroad Company*^

The Union Pacific

Railroad Company, Southern Branch, is now a part of The Missouri, Kansas ~nd Texas R a i l w a y t h © Northern Kansas ^ United States Statutes at Large* vol. 12, p. 772. 2 steteixient. General Lend Office > Feb* 23, 1915, pp. 12-13. 3 SbVra of^Hailroed Commissioners, Kansas, First Annual . Report, p. 47 (1883). ^ 127 I. C. G* 213# 358, 359. 5 United States Statutes at Large,vol. 12, pp. 772-774. 6 United States Statutes at Large, vol. 13, pp. 339-340. ' on March 31, 1870 , a eertif1catewas filed with the Secretary of state, Kansas, changing the name of the Union Pacific, southern Branch, to the Missouri, Kansas & Texas Railway Company; Corporations. Secretary of State, Kansas, vol. 3, P* 297; vol. Ai, p. 244.

46 Railroad Company ie a part of th© St. Joseph and Grand Island Railway Company,*' which is In turn operated under lease by the Union Pacific Railroad Company.2 The Federal government also granted to th© Kan­ sas and Neosho Valley Railroad every alternate section of land or parts thereof, designated by odd numbers, to th© extend of 10 section per mil© on each sid© of said road, to b© selected from within twenty miles of the line of road.^

This railroad, as authorized, was not built, and

Congress in 1877^ repealed the portions of the Act of July 25, 1866, granting alternate sections of land to th© extent of 10 sections per mile on each sid© of the track; they did not, however, repeal the portion granting a right-of-way. The railroad was released from its obligations under the grant; but, pursuant to provisions in th© repealing Act, th© railroad reconveyed to th© Government the entire 21,342 acres patented to it under the grant except for 52? acres sold by it, for which latter it paid the Federal government th© amount realised from sales, yl,499.^ Th© net patented acreage received by the

tchison,

Topeka and Santa F© Hail Road Company from th® Federal Chartered by special act of th© Territorial Legislature as th© Marysville or Palmetto and Ho a©port Railroad Company: Laws of Kansas, pp. 193-198 (1857)* 2 44 Valuation Reports 340. ? Unliea''States''statutes at Large. vol. 14, V* 236. 4 United States IJtaWFe^'Tt Xarge. vol. 19, p. 404. 5 statement« Gene ral Lend Offloe, United States, February 23, 1915,

47 government amounted to 2 ,928,828 acres and was sold for #9*495,091.*'

From the same source the Central Branch

Union Pacific received 221,793 acres which sold for 1676,501;2 the St. Joseph & Denver City received 455,764 acres and sold them for $1,205,53!;^ the Kansas Pacific received 6 ,928,828 acres, but as the amount received in the sale of

lands granted to th© Union Pacific system, of which th© Kansas Pacific is now a part, is not allocated to the various predecessors it is impossible to state th© amount received in the sale of th© Kansas lands.4

in addition to th© above

roads the Kansas City, Port Scott & Gulf received 89,6?2 acres from the state, disposing of the grant for 0234 ,168 ;-* the Leavenworth, Lawrence & Galveston received 114,324 acres from the Federal government and 123,543 acres from the state which were sold for #532,686;^ and the Missouri, Kansas & Texas through one of its subsidiaries, the Union I^acific Railroad Company, Southern Branch, received from the Federal government 572,081 acres which it disposed of for $861 ,093*^ net and 88,369 acres from the state which it sold for 4249 ,173 .S 1

2 f

4 5 ,

127 I. c. C. 279. 40 Valuation Reports 436*

44 Valuation Heports 351. 40 Valuation Reports 436. Board of Railroad Commissioners, Kansas, First Annual Report, pp. 148-149 (1883).

% 127 XV C* C. 280.

* Federal Coordinator of Transportation, Public lids to

Transportation. vol. II p. 109 (1938). 34 Valuation Reports 434.

48

Xu some instances, unearned or uupatented grants of land or portions thereof were revoked by subsequent legislation and in other instances forfeited*

The grants

of Congress, as well as those of the state required com­ pletion of the aided roed within specified periods on penalty of forfeiture*

In s.chulen.berg v* Harrlman^ the

Supreme Court of the United States held that the Federal grants were in praeaenti* immediately transferring titles within the place limits, though subsequent proceedings might be necessary to give precision to the titles and attach them to specific tracts, and that the provisions for reversion were conditions subsequent, which became operative only in instances whei*© the Government took steps to enforce the forfeitures*

Pursuant to this ruling und

th© urgent demands of settlers that the railroads patent their granted lands or forfeit them; the state Legislature in 1883

empowered th© Eon* s* «T* Crawford to represent

th© state of Kansas In securing a proper adjustment of certain railroad land grants* On April 4» 1884,3 Mr* ^ohn A* Anderson, a Rep­ resent© tiv© from Kansas, reported that the estimated number of acres granted by Congress to railroads in Kansas were 9,407,066, and that 3,412,411 acres had been patented as of Xun® 30, 1883*

Th© report makes no mention of th© grant to

th© Central Branch Union Pacific,^ however, and its figures 1 ~ 3 4*

21 "Pll. 44 (1874). Lawa of Kansas, ohap. cxxvi, pp. 197-198 (1883). Report Mo. 1113a 48th Congress, let >©ssion, United States Commissioner of Railroads, Annual Report, p, 62 (1883).

49 do not agree with the report of the railroads as to the number of acres patented****

It la, none the less, indicative

of th© fact that the railroads were negligent in obtaining patents to their land-grants— due in a measure, no doubt, to th© fact that much of the land was considered worthless* Litigation and absence of enough land to fulfill the terms of the grants were also factors of no little importance* The United States Supreme Court held* in Leavenworth* Lawrence & Galveston Railroad Company v* United States* that title to alternate sections of land within Indian reservations did not pass under lend grants by Congress in aid of railroad construction*^

The St* Joseph and Grand

Island states that if all lands proffered in the grant to its predecessor had been available, it would have received 1,4^2,600 instead of 455*764*39 acres*3

The Missouri, Kan­

sas & Texas reports that 270,970*76 acres were deducted from its grant because they were in the Osage Ceded Reser­ vation*^*

Col* Samuel J* Crawford in his report to the

governor of Kansas in 1890^ announced that he had recovered a large portion of th© original land grants, the largest being th© remaining unpatented acres of the /tchison, Topeka

* * j 4 ^

Board of Railroad Commissioners, Kansas, Annual Report* (1863). 92 U* S* 733* 44 Valuation Reports 351* 34 Valuation Reports 434* Crawford, Samuel f*, Report of the State gent to the Governor of Kansas, p. 9 (1890)•

50 and Santa Fe Rail Road amounting to 833*900 acres being from near Kinsley to the west line of th© state.'*'

"The people of the State and the owners of rail­ road securities are to be congratulatedit is declared in the Report of the Railroad Commissioners for 1890,^ "upon the Indications that the mania for railroad build­ ing in Kansas Is a thing of the past*

The construction

and maintenance of hundreds of miles of illogical and superfluous lines of road is bearing its legitimate fruit, and demonstrating so fully the unwisdom of the policy which prompted it as to preclude the probability of its repeti­ tion*

Th© construction of the present year (1890) amounts

to but eighty-five miles." By 1888 systems of railroads which were operating a part of their mileage in Kansas reported th t out of 6,813 miles of non-self-supporting road, 4,619 miles were within the state.^

t& might be supposed, the major portion

of this deficit was Incurred by mileage more recently con­ structed, but a portion flowed from older roads whose vol­ ume of traffic had been out by competing lines built later* It is impossible to determine the amount of stock sold or bonds issued J ^ 3

nd sold to the investing public.

An

Crawford, Samuel J., on. oit.. p. 10 (1892)* Board of Railroad Commlasloner©, Kansas, Eighth nnnal Report * p* iv (1890)* Board of Railroad Commissioners, Kr-nsas, sixth annual Report, p* 6 (1888).

51 Illustration or two will show that at least some fraud­ ulent bonds were issued,

Mr* T* A, MoHeal says:*

"During the early seventies it occurred to a number of enterprising thieves that the organ­ ization of counties in central and western Kansas offered an inviting field for exploitation at comparatively little rich to the exploiters, There were practically no permanent residents in that part of th© state at that time and con­ sequently few who had a personal Interest in preventing th© robbery consummated under forms of law, "The statute governing the organization of new counties required at that time at least 600 bona fide inhabitants within the territory to be organized* In 1872 there were probably not more than 100 bona fide inhabitants in the territory included within the boundaries of th© proposed Barber county, * • • A census taker was appoint­ ed and from convenient hotel registers he copied the requisite number of names, swore that they were bon© fide residents within the territory of the proposed county, , * , ., "At the instance of members of the gang a railroad corporation celled th© Hebraska, Kan­ sas & Southwestern waa organized. Hot only In th© language of a former member of the Kansas Legislature did this road *not terminate ©t either end* but it had no existence except on paper* Xet th© looters managed to put over an alleged bond election by which th© new county voted tlQQ,000 ten per cent bonds to this mythical corporation and then, in vio­ lation of the spirit If not th© letter of the law under which the road was supposed to be built before the bonds were issued, the board of commissioners Issued and sold th© bonds without there being a single mile of road con­ structed* Th© bonds passed into th© hands of an English capitalist, © member of the British Parliament, Afterwards th© taxpayers of Barber resisted payment of th© bonds, end carried th© litigation through the courts up to the supreme court, but they lost In th© end and had to pay both principal and interest on that utterly fraudulent obligation*" 1

When Kansas Was Young, pp« 20-23*

52 Many of the proposed roads were not remembered long and were remembered with little gratitude by those who suffered pecuniary loss#

Not all county, township

and municipal bonds voted were issued because, in many instances the roads-— even though built— did not abide by th© terms of the contract#

A few random illustrations

taken from Andreas1 History of the State of Kansas will illustrate this fact#

In regard to Butler,1 Coffey^

and Cowley-* counties, Mr* Andress says: "The railway history of any county on the broad surface of Kansas is a record of trials and tribulations, of hard struggles to secure th© co-operation of settlers in necessary expenditures, of retreat from the field of companies for which so much had been done, or final success and the arrival of the iron bands which unite th© world* The first railway to solicit the aid of this county was th© Kansas-Nebraska, which proposed to build across the county in consideration of th© subscription of #150,000 to the stock of th© railway company and the issuing of an equal amount of bonds of th© county* This proposition was carried by © vote of 1,18? to 811, but the penic of 1873 coming on, the building of th© road was deferred and finally abandoned* The Kansas City, Burlington & Southwestern Railway and Telegraph Company made overtures for aid to th© amount of not over #4,000 per mile in running an east and west line through Butler county* Th© proposition was favorably consider­ ed but the matter stopped there and th© road was never built* On February 21, 1880, the townships of Douglass and Walnut in Butler county voted aid to th© St# Louis, Wichita & Western Railway, but th© road was never constructed* "The Topeka, Burlington & Verdigris Railroad Company was chartered July 16, 1869. This road \

* 3

P. 1430. Ibid.. p. 650. Ibid.. p. 1588.

53 was to run from Topeka to th© south line of th© state, via Burlington* Coffey oounty voted to issue bonds to th© amount of #150,000 in exchange for stock in this railroad, and Wilson county voted to issue #200,000 in bonds to the same road in exchange for its stock* The panic of 1873 killed th© enterprise* On June 29, 1867, the people of Coffey county voted to subscribe for ©took to th© amount of #200 ,000 , end to authorize th© Board of County Commissioners to issue bonds therefor, to th© Union Pacific Hailway Company, Southern Branch* On November 14, 1868, the railway company assigned these bonds to th© Land Grant Railway & Trust Company to build, ©quip and operate a railroad from Junction City to the south line of the state* Th© Land Grant Railway & Trust Company was chartered by th© State of Pennsylvania, and was authorized to do business in any state, territory or oounty, except Pennsylvania* It was this company that built and operated th© road* In th© spring of 1870 when this company demanded the $200,000 of bonds of Gcffey county, the Commissioners refused to deliver them on the ground that the Land Grant Railway & Trust Company had no legal existence outside of the state of Pennsylvania which had created th© organization* Mandamus proceedings were Instituted in th© Supreme Court against the County Commiesloners; but, at th© July term, 1870, the writ of mandamus was refused, the Supreme Court sustaining th© position of the County Commissioners* Coffey county thus evaded th© Issuance of these bonds. "Cowley county in March, 1873, voted to subscribe for #150,000 of the stock of the Manaa©-"Nebraska Railway issuing an equal amount of oounty bonds* The road was not constructed,” Not all elections were favorable to th© railroads, nor were all of them peaceable* son oounty may b© cited*

As an illustration Jeffer­

Soon after the close of th© Civil

War th© citizens of Jefferson county began an effort to secure a north-and-south line of railroad.

As early as

1865 th© Kansas Pacific was built across the southern part of the oounty, and the same year the Atchison,

54 Topeka and Santa Fe Rail Hoad Company promised that, for 1300,000 in bonds, they would construct their road across th® oounty*

An election was held and the bonds defeated.

Again in the fall of 106? the question of voting bonds was agitated* templation?

This time two lines of road were in con­ the Atchison, Topeka and Santa Fe, and the

Atchison, Oskaloosa & Lawrence Railroad, each of which roads asked $130,000 in county bonds*

Soon an election

was held, and the bond proposition carried by a small majority*

Those opposed to this bond issue had mad© ©

strong and bitter fight; this fight to prevent issuance of the bonds was continued, the charge being made that there had been fraudulent voting in Grasshopper Falls Township where a heavy majority was received*

At th©

time of the canvass of the votes by the Oounty Commis­ sioners, no objection was raised; but, just at its clos®, th© opposition lodged an objection to the inclusion of the Grasshopper Falls1 vote, demanding the poll books for the county— *which were given them.

When these were returned,

the Grasshopper Fallsf book was found missing*

When this

was noted by the County Commissloners, they summoned the trustee of that township, th® proper custodian of th© book, to appear before them.

On being sworn he stated he knew

nothing of its whereabouts# thereafter.

It was returned sometime

At th© time of the canvass of th© votes

Terry Critohfield was County Clerk, but © short time after­ ward (January, 1868) Walter H# Allen, who had been elected

55 before, took charge of the affairs of the office, end championed the cause of th© anti-bond men#

Some time

during th© period of the dispute the Atchison, Topeka and Santa !*© Bail Hoad Company demanded th© issue of the bonds, whereupon two member© of th© Board of Gomaissloners, John Coffey and William Gragg, ordered th© Clerk to issue bonds of $150,000 to the above named road#

The third Com*

miseioner, John Davis, refused to sign this order*

Allen,

firmly convinced that the election had not been legal, refused to issue the bonds*

A suit of mandamus to compel

him to do so was then brought; he ©till refused to sign, whereupon he was remanded to jail*

Still holding out

strongly, he was in a short time released*

In October,

1869, he was removed from office, and on© L# A* Myers appointed in his place#

Th© Commissioners again ordered

the Issuance of bonds as payment for ©took, which order was executed# In January, 1870, the Board of County Commis­ sioners, now having a majority opposed to the bonds, allow­ ed Walter 351# Allen $1,200 to b© used in defending himself and the county against the payment of the bonds#

An in­

junction against their payment was issued, and on May 31, 1871 this injunction was made permanent#

Th© case was

before the courts for © number of years, th© decision finally being that the election was illegal because of th© large number of votes fraudulently cast; issued were declared null and void*

oounty bonds

Many more of th© 1,112 roeda that represented little more than a charter and a legal organization offered proposition© to the counties they were planned to traverse* Some of th© promoters were in earnest, no doubt:

many

propositions were mad© to "feel out" the sentiiaent of th© voters, not only with th© idea of having bonds voted and given In exchange for stock (then having th© stock returned to the company for a very modest sum, as Illustrated from the records of Franklin oounty) but also to gauge th© possibility of selling stock to residents of th© interested territory* 'fh© first railroad in Franklin oounty vms th© Leavenworth, Lawrence & Galveston, which was built from Lawrence to Ottawa in 1867*

At th© election of November

9, 1866, the electors of Franklin county voted to sub­ scribe |125,000 of oounty bonds to purchase capital stock of the railroad, but these bonds were forfeited**

On

September 27, 1867, however, th© electors voted 365 to 533 to exchange 1200,000 of county bonds for stock of the

railroad*

On January 30, 1868, th© Commissioners assign­

ed #100,000 of these bonds to

S* Fotwin and Company,

contractors for th© railroad, ^ and on June 16 th© remain­ der were Issued to th© railroad.4

/gents of the Leaven­

worth, Lawrence and Galveston asked the County Commissioners "Record," 1858-1868, pp* 342-349, Commissioners* Journal* entry 2* | jbldl. p » 398. ? JI32*, pp* 440-444. 4 2HI*, p* 460. 1

57 for the surrender of the certificates of its stock held by Franklin county, claiming this would remove the only obstacle to operation of the road#

The Commissioners,

wanting th© road to operate end being "unwilling that our county should occupy 00 objectionable a position before th© people of th© state," agreed Tuly 19, I869 , to transfer th© county*s stock for the sum of JlOO*^ Poor but gave expression to a fact widely known in declaring;

"That vast amounts of fictions capital

were floated during this period is well known and univer­ sally acknowledged*"2 Financial depression, produced a condition decidedly unfavorable to th© profitable operation of railroads in the state# "The Western railroad© had to get across the plains," says vebb#

"To stop on the plains would have

been fatal, because there was nothing for which to stop#"3 Xt follows, then, that a. railroad on th© plains was almost inevitably a losing financial venture in so far as it depended upon th© plains for revenue#

To build a rail­

road across th© plains meant tying up great sums from which, by th© very nature of things, there could be ex­ pected Isanedlately no adequate return# 1 2

IMi** P* 78 (1869-1872). Foor, H. V#, Manual of the Railroads of the United State© « p# Iviii (1900T# 3 W e W T w . P.. Th# Great Plains, pp. 274-275.

5S In th© older states of the East, population end established Industries, equal to the maintenance of a railroad, were conditions precedent to their construction* There, Investors were tempted to such enterprises by the likelihood of immediate earnings adequate to meet interest on their investment*

In Kansas, by contrast, railroads

were built over the tenantless prairies in advance of population or any transportation-supporting industries* They were built to invite population and make supporting industries possible upon their projected lines*

Building

was stimulated by the volume of "easy Etoney" in the Bast and in Europe which sought an outlet, and furthered by th© readiness of pioneer areas to vote subsidies to obtain without delay the desired railroad transportation*

Th©

history of railroad building In Kansas is both a marvel and a novel of investment and enterprise*

It was no less

than history-making, with no possible hop© of return In th© form of earnings from traffic except as construction Itself made possible the necessary development* The®© conditions necessarily exerted a determin­ ing influence upon railroad capitalization*

Investors

could not be tempted to enter such an untried field with­ out public aid and a reasonable promise of an iumediat© profit upon the work of construction— these to protect them from loss of interest during the period of settlement end Industrial development, from th© possible loss of

principal itself*

Hence debt incumbrance and stock issue

were characteristically in excess of the cost of con­ struction and equipment, even though bonds h ;d been placed at par, which was rarely— if ever— th© case.

It was a

speculative outlay of funds, rather than sound Investment, which gave Kansas in 1890, vdlth less than one and one-half million population, a greater railroad mileage than th© state of New York— possessed of a population of 5 ,997 ,853 * vast natural and manufacturing industries developed, a seaport which made It the chief entrepot of commerce,

b

world1s

Its mileage was in excess of that of Pennsylvania

with its 5 ,258,014 population, limitless resources of coal and iron, and its manufacturing and agricultural industries furnishing more than fifty times th© passenger and freight traffic of Kansas; end th© Kansas mileage was e thousand end fifty miles more than that of the whole of Hew Eng­ land— possessed of an aggregate population of 5 ,010 ,535 , and more than a century's preeminence a a the manufactur­ ing center of our country and this continent* No further Illustrations than these should b© required to show th© excess of Kansas railroad mileage over available traffic for their maintenance*

In fixing

the responsibility for this unbalanced condition, we should not ignore reason and justice*

It is a truth of

history that th© Impulse whioh led to this extensive rail­ road construction was not all, nor chiefly, with those interested as investors or present owners.

It was only

60

one of meny Instance© of over-riuoiuentuia in Western ambition and energy#

Public eld was offered; first in Federal land

and money subsidies, then the state donated the proceeds from the sale of 500,000 acres of land to railroads*

Hot

being content with this the State legislature provided ample power to all its municipal governments to vote aid in a sum equal to one-third of the cost of the railroad per mile,

Bvery city, oounty and hamlet in Kansas had

one or more railroad projects in hand continuously, to which they offered all that the lav* would allow them to give, and often more in individual subscriptions*

Hot

content, those with one road secured wanted two, and those with two were not less clamourous for more* These bids, together with the phenomenal growth of the state, led to an ambition among the leading railway companies for conquest and mastery of such a promising field.

They paralleled their own main lines, and sent

out collateral branches uncalled for, if not illogical and a perpetual mistake*

This race for territorial conquest

wsystem completion"— was always sustained by a popular demand along th© proposed line and commonly benefltted from municipal eld to the maximum legal limit* After the "boom," the "boomerang."

The companies

found themselves confronted with fixed charges on nonpay­ ing trackage; municipalities were equally unhappy under a debt of aid bonds and extravagance in public expenditure*

61 Th© on© ©ould not find relief through resort to excessive charges, nor the other through a repudiation of contract obligations; the majesty of the law would not permit it* th© Railroad Commissioners of 1890 reported:1 *We have 1,500 miles of railroad which is worse than worth­ less to its owners, and a burden upon the commerce of the state as a whole, although a blessing to the country along its line#

It came by invitation, encouragement and support

of th© people,* Railroad mileage in Kansas to June 30, 1885, was reported as consisting of 4,168#48 miles#2

In 1890, total

mileage reported was 8 ,787 *37 ;'* in 1928 it stood at 9 ,537.39 *^ Thus it appears that, during th© first 3$ years of statehood, mileage increased to 4 ,168 .48 ; that during the five-year period, 1885-1889 inclusive, mileage Increased by 4 ,628 ,89 , or 460,41 miles more than th© total for th© first thirtyfive years; end that, during the next 38 years, an increase in mileage occurred of only 740.02 miles. Besum© from th© preceding discussion It can be seen that the first phase of pioneer development in Kansas was characterized by subsistence faming; the next was Board of Railroad Commissioners, Kansas, Report» p. Ix (1890). 2 Board of Railroad Commissioners, Kansas, Report, p. 198 (1885)* 3 Board7 of Railroad Commissloners, Kansas, Report, p. xxx (1890). 4 fublic Service Commission, Kansas, Ninth Report, p. 1017 (1926-1928 ). 1

Eighth Annual Third Annual Eighth Annual Biennial

62

characterized by relatively large-scale farming for a market, created to a considerable extent by the extension of the rails*

This extension of the rails was due, in no small

part, to the liberal lend grant policy of the Government and the willingness of the municipalities to extend aid by issuing their bonds in exchange for stock of th© rail­ road*

The growing foreign demand for Amex’iean agricultural

products, the application of scientific methods to agri­ culture— including the invention of implements and develop­ ment of techniques suited to extensive farming, th© rapid population growth, and th© abundance of ©astern capital seeking an outlet in the growing west played their part. The total population of th© state approximately quadrupled during th© two decades after 1870 , the most remarkable growth being made in central and western counties which had been practically uninhabited at the beginning of the period*

/s advance guard of civilization helping to

clear th© way for agricultural development of th© plains, appeared th© rang© catti© industry.

Rang© grazing represent­

ed th© first successful utilisation by the white man of the resources of th© plains area*

By 1867

G, McCoy had

established at /bilene a market, with shipping facilities over th© Kansas Pacific, for Texas cattle,

For five years

this original Mcow town" was th© main objective of th© great northward drives} a total of 1 ,460,000 head having been driven there between 1867 and 1871.1 1

’ebb, W, P., on. olt*. chap. VI.

As the railroads

63 advanced, other points became in succession the objective for drovers; among these should b© mentioned Wichita, Ellsworth, Newton, 111is, Bodge City, Caldwell and Hunnewell. By 1880 from four to five million cattle had been driven to these "cow towns’1 during successive periods of dondnence* Some cattle were unfit for shipment after th© long drive, and at times the market was glutted, so that surplus herds were regularly turned out on the Kansas prairie until ready for shipment,

Soon th© open range

of western Kansas was stocked with great herds of the hardy longhorns.

This period of the open-range cettle

industry was relatively short, but its consequences upon settlement were far-reaching,

It ushered a crude but

ingeniously adapted civilization into an area previously wild and untamed, A series of important inventions hastened the progress of farm settlement in the plains section, and soon curtailed th© operations of those who relied upon the open range.

The introduction of th© steel "prairie

breaker" in the seventies, followed by the sulky and gang plows of the eighties and nineties, greatly expedited th© task of breaking the grass lands and bringing the land under cultivation.

Invention of other tillage implements,

such as the adjustable straight tooth harrow, the disc harrow, the field cultivator, and the lister encouraged extensive farming methods adapted to conditions on the

64 plains, greatly reducing labor requirements end lowering c o s t s A t th© same time there were introduced new or improved varieties of crops adapted to th© Kansas climatic conditions, beginning with the hard winter wheat imported by th© Mennonites, and eventually including droughtresisting sorghums and alfalfa.

Improvements in harvest­

ing machinery, too, did much to further the development of grain production by extensive methods, Th© greatly Increased yields resulting from these new agricultural techniques, aided by a series of years of plentiful moisture and high prices for both wheat and corn during th© early eighties, produced a wave of prosperity that soon reached the proportion® of a boom. Settler® poured into Kansas, particularly into the counties of the Central Sub-Region,2 where fertile lends could be purchased at lew price®, In the flow of immigrants who came during the "boom years" came many who were speculators rather than dirt farmers,

Although th© fertility of the new farm

lands and th© efficiency of the improved methods of extensive faiming provided a sound basis for a moderately growing population and © reasonable Increase in land values and railroad extension, there was no justification for th© bonanza scale of growth either in population or railroad 1 2

Rogin, Leo, The Introduction of Farm Machinery in Relation to the Productivity of Labor, University of California Publications in Economics, vol. IK, part 1 (1931). see p. 69 , supra.

65 mileage nor for th© exorbitant prices paid for land at th© peak of th® boom. astounding*

Changes during th© "boom years" were

Th© population of many counties in the central

and western parts of the state increased more than 100% in the five years preceding th© boom’s collapse*

Railroads

were rapidly extended, not on the basis of legitimate need but as a means of increasing land values further.

Town­

ships, cities and counties bonded themselves heavily to encourage such railroad construction*

Money was easy to

obtain for purposes of speculative expansion and th© mortgage Indebtedness borne by real property reached un­ precedented heights*

The inflated economic values of the

"boom" period collapsed in 1888#

Falling prices for fern

crops, th© high cost of the heavy d©bt burden, end in the western counties rainfall insufficient to produce satis­ factory crop yields, contributed to the inevitable crash* Th® most disastrous effects of th© "boom" were suffered by the counties in th© middle section where expansion had been most rapid and extrmm • Most towns in this area lost heavily In population, some being left with fewer than onehalf th© inhabitants they boasted in peak years*

Not a

few wer© abandoned outright when projected railroad lines failed to materialize*

Others, finding their deflated

property valuations to be less than their total debt, became hopelessly insolvent* But, while the more spectacular collapse occurred In th© towns and cities, th© heaviest sufferers were farmers

66 who had bought land at "boom" prices,

In some counties in

the Central 3ub~R©gionf* three-fourths of all farms were mortgaged, the debt not infrequently exceeding the value of the farm when the deflation came*

Three out of every

five acres listed for taxation in the state were encumbered 2 in 1890* To make matters worse, several bad crop seasons followed, and grain prices continued at low levels.

The

rural suffering during these years has probably never been equalled, before or since, in the history of the state,3 From one standpoint the expansion of the eighties may be viewed as an unsuccessful invasion of the dry belt. It met with temporary success largely because the years from 1878 to 1886 were favored with rainfall considerably above the annual average*

The return of seasons of insuffi­

cient moisture caused a disorderly retreat from the western area and mad© it clear that it could not be won by the same methods that had brought success to the pioneers farther east.

The last phase of pioneer settlement in Kansas has

been the successful occupation and profitable exploitation of this sub-humid portion by farmers and stockmen* ^ 2

See p, 69 , sunra, Miller, R* C",, "Background of Populism In Kansas,* Mississippi Valley Historical Review* vol, XI, p, 482 Ii924-i925). ^ '' ' ir"r"....... 3 Board of Railroad Gomsaissloners, Kansas, Tenth Annual Report, p* xi (1892). '(3o great was the distress in consequence, that thousands of settlers abandoned their claims and removed temporarily to more favored localities, while nearly a H who remained were enabled to do so only through the timely assistance of friends and a generous public;*

67 The foregoing discussion of geographic factors and the process of pioneer settlexaent is significant in evaluating the statistical facts relative to the state’s population growth*

If the main facts concerning the

land, the climate {particularly rainfall), end the move­ ment of the frontier are kept in mind, the data concern-* ing growth and distribution of population and railroad mileage will have added meaning. Table 1 Growth of Population in Kansas, I860 to 1930*3Tear

Total Population

Increase over Preceding Decade Number

1860

364,399

1880

996,096 1 ,428,108

1910 1920

1930

Per Gent

107,206

1870 1890 1900

.Average Density (Population per Square Mile)

1,470,495 1,690,949 1,769,247 1,880,999

1.3

257,193 631,697 432,012

239.9 173*4 43*4

42,387 78,308

3.0 15.0 4*6

111,742

6.3

220,454

4.5 12.2

17.5 18.0 20.7 21.6

23.0

The percentage increase in population of 18?0 over that of I860 was great, though this was due largely to the fact that the population of the base year was relatively smell.

The largest absolute gain occurred in

the decade ending in 1880, when 631,697 were added to the population, and the second largest in the decade end­ ing in 1890 , when the increment was 432 ,012 . 3- Adapted from United states Census, 1930, Population, vol* 1, Kansas, Table 1, p. 399*

68 it w i n be recalled that these two decades covered

the period of most rapid pioneer expansion, stimulated by such factors as railroad development, improvement in agri­ cultural technology, and unusually favorable moisture conditions,

this amazing growth from a total population

of 364,399 in 18?0 to 1 ,428,108 In 1890 tells briefly but in impressive fashion the story of the Kansas "boom". While the crash c.me a year or so before the census enu­ meration for 1890 , its effect on the population growth curve is not revealed until the following decade.

The

population increase of 1900 over 1890 was only 42,3^7, a gain of but three per cent— the smallest of any in the state *s history. In 1860 only a dozen counties in the extreme ©astern portion had an average density of more than five persons per square mile.

The invasion of the central

portion was evident by 1870,

By 1880 only 17 western

counties had fewer than one person per square mile end by 1890 not a county in the state had fewer than an average

of one person per square mile. The part that railroad construction played in this extremely rapid development of th© central and western sections, Including its contribution to the "boom* and the reckless financing that led to its collapse, has received previous comment.

Although progress in railroad building

was only on© of many factors affecting the population

69 growth of Kansas, the importance of its influence down to 1890 is strongly indicated by tk© following table which gives the number of miles of railroad existing in the state and each of its sub-regions by five year periods from 1870 to 1905*

The railroad mileage increase in the

various sub-regions corresponds surprisingly with the increase in number of inhabitants or average density. Table 2 Miles of Railroad in Kansas, and its Three Sub-Regions 1870 to 1905.1 Area.

Humber of Miles of Railroad 1870

1875

1880

1885

1890

a a b b b 4,181 8,706 State 2,117 1,124 3,104 Sub-Reg ion X 652 1,148 1,456 1,782 2,860 Sub-Region II 266 548 1,213 1,915 4,146 Sub-Region III 206 421 216 333 1,700 Ihiorgeni&ed Twrrltdry 218 151 ^

1896 b 8,829 2,930 4,231 1,668

Clark, Carroll D* and Roberts, Roy L., Peopie o f 'Kanaes. Stott* Plaiming Board, (October, 1936). a Hull, 0* C., "Railroads in Kansas," Kansas His tor ioal ^ Collections, vol. 12, pp. 37-46 (1911-T§12l7 ~ b Special compilation from Biennial Report. Auditor of State, pp. 261-265 (I860): pp. 150-155 (1885); pp. 174-184 (1890)5 pp. 116-127 (1895); pp. 295-306 (1900); pp. 57A 69 (1905). a This total is given in the auditor's report for this year, p* 312. The total mileage by counties as given in the same report i© 8,719* (The authors have divided the sub-regions as follows: Sub-Region I: All counties east of and including; Nemaha, Jackson, Shawnee, Osage, Coffey, Woodson, Wilson and Montgomery. Sub-Region II* All counties west of Sub-Region I and eest of and including; Smith, Mitohell, Lincoln, Ellsworth, Barton, Stafford, Pratt and Harper. Sub-Region III: All counties west of Sub-Region II.

70 Chapter III SYSTEM PTOLOFMEOT WITHIH THE STATE OF KANSAS The Atchison* Toneka aad Santa Fe Railway Company! The Atohisonf Topeka and Santa Fe Hallway is a Kansas corporation, having its principal office at Topeka, Kansas, its general administrative office at Chicago, Ill­ inois*2

It controls directly, through ownership of capital

stock to the extent shown (directors* qualifying shares in­ cluded), three companies operating in Kansas*3

'Two of these

companies are operated by the Atchison, Topeka and Santa Fe Railway, one by a separate organizations Operated by the Atchison, Topeka and Santa F© Railways

stock owner* ship* Per cent#

Dodge City and Cimarron Valley Railway Carden City, Gulf and Northern

100 98

Operated by separate organization; The Kansas Southwestern Railway Company

100

The Atchison, Topeka and Santa Fe Railway Company was incorporated December 12, 1895, under the general laws of the State of Kansas, for the purpose of acquiring the property, rights, and franchises of the and Santa Fe Rail RoadCompany*^

tchison, Topeka

The following chert

shows

the names of th© Kansas corporations which compose aportion 1 2

? *

127 I* C* C. 1. Ibid*, p* 204, Idem* Ibid* i p* 206 *

Asof June 30, 1916*

71 of the present Atchison, Topeka and Santa Fe Railway, the respective dates of incorporation, end for each predecessor the date of succession, the immediately succeeding corporation, uad 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*1

x

12? I* C* C* 207-211.

72

.Table 3 Kansas Incorporations of the Atchison, Topeka and Santa Fe Railway Company^ ho*

mm

IM00RP0RAT10M

SUOCBSSIOH

1* The Atchison, Topeka and Santa Fe Railway Company,

Under general laws of Kansas, Deo. 12,

2, Atchison, Topeka and Santa Fe Rail Road Company*

See 3*

Sold at foreclosure sale Dec* 10, [email protected]> after receivership begun ' Dec,. 24, 1893, add reor** ganiaed Bee* 12, 1895, as 1#

3, Atchison and Topeka Railroad Company.

Under special act of Territory of Kansas, Feb. 11, 1859*

Mam© changed to 2, Mov. 24, 1863*

4,

Under general laws of Kansas, through articles of con­ solidation, dated July IS, li§9* filed in Kansas July 24, 1889.

Sold at foreclosure sale Bee. 30, 1898* and con* veyed to 1* Bee* 31, 1898, after receivership begun Feb. 1, 1895* ■

5. The Wichita and Western Railroad Company*

tinder general laws of Kansas , Bay-17, 18S3*

Consolidated July 24, 1889, with 6 to form 4*

6* Th© Kingman, Pratt & Western Railroad Company,

Under general laws of Kansas, Sept, 11, 188 5. •■ }■ Under’general laws of Kansas, through art!** ales of consolidation, dated July 13* 1875, filed, In Kansas Sept/ 2f, 1875*

Consolidated July 24, 1889, with 5 to form 4*

The Wichita & Western Railway Company,

7* Kansas City* Topeka and Western Rail-, road Company,

1 127 1 , 0 , 0 , 207-211.

1895*

Sold to 1, Fib* 15, 1899*

73 m.

NUMB

INCORPORATION

succession

The Lawrence and Topeka Railroad Company*

Under general laws of Kansas* Deo* 2, 1S68.

Consolidated Sept* 29* 1875, with 9 to form 7#

'9* Kansas Midland Rail Hoad Company*

Under general- laws of Kansas, May 29* 1873*

Consolidated Sept* 29, 1875, with 8 to form y,

10.

See- 11*

Sold at foreclosure sale Feb. 23* 1877* and con* veyed on Mar. 6, I877* to Frank Morisen who, by deeds dated Oct. 18, 1877 conveyed that portion of the property extending from Lawrence to Corliss * Kansas, to 7* and the remainder— -extending ■ from Corliss, Kan.* to Pleasant Hill* Mo*— *to ' the Pleasant^Hill and Be Soto- Railroad Company* a predecessor' of the'Kan­ sas City, Clinton and Springfield Railway Company,

II * The St. Louis * Lawrence and Denver Railroad Company.

Under general laws of Kansas* through articles of con­ solidation, datad lune 28, 1872* filed in Kansas lan* 15* 1873*

Name changed to 10, Feb, 26, 1874,

12*

Under general laws of Kansas, duly 31, 1071 *

Consolidated Jan., 15, 1 1873* with 13 to form 10,

Under general laws of Kansas, through articles of consolidation* dated Nov. 10* 1870, filed in ■Kansas Nov# 14* 1870.

Consolidated. Ian# 15* ■ 1873* with 12'to form 10.

8*

St. Louis* Lawrenoe and western Railroad Company.

Lawrence and Oarbbsudal® Railway Company#

1.3* The St* Louis* "Lawrence & Denver Railroad Company*

74

ho,

mm

INCORPORATION

SUCCESSION

14*

Saint Louis, Lawrence ant Denver Railroad Company*

Under general laws of Kansas, through articles of con­ solidation, dated Apr* 30, 1670, filed in Kansas May 24,

ConsolidateA;.Nov* 14, 1870, with Pleasant Hill'and Lawrence Branch of the Pacific Railroad company, to form 13*

1870*

15*

The St* Louis, Lawrence and Denver Rail Road Company*

16. Leavenworth* northern

and Southern Railway Company*

Under general laws of Kansas, July 20, 1865.

Consolidated Kay 24, 1870, with 16 to form 14.

Under general laws Of Kansas, Oct* 24* 1885*

Bold to 1, Feb* 15, 1899*

17*

The Southern Kansas Railway Company*

Under general laws of Kansas,, through arti* olaa of consolidation* dated April 16, 1885, filed irrKansas April 16, 1885*

Sold to- 1#.Feb* 15, 1899*

18*

The Kansas Southern Railway Company*

Under general laws of Kansas, through arti­ cles of consolidation, dated Feb*,15* 1884, filed in Kansas Feb* 15, 1884.

Consolidated Apr* 16* 1885, With 22, 23, an 37 to form 11,7*

19*

The Crawford County Railroad Company*

Under general laws of Kansas, fob* 7, 1884*

Consolidated Feb* 15,. 1884, with 21 to- form 18.

20,

The Nebraska, Topeka , Iola and Memphis Hailroad company#

Under general laws of Kansas, June 17* 1881*

Sold at foreclosure Jan* 21, 1884, conveyed Feb* -6, 1884#■ to F* Wilder, .who- caused in­ corporation of 19 to acquire the property*No record.of'teed to 19 recorded*

Under general, laws of Kansas, June 1* 1883*

Consolidated.Feb*.15, ' 1884,'with. If to form. 18*

Under general laws of Kansas, Dec* 11, 1880*

Consolidated -Apr* 16*■ 188,5* with 18, 23, and 37 to form 17#

21* Kansas Southern Railroad Company* 22,

The Kansas City and Emporia Railroad Company*

75

NO.

NAMF

INCORPORATION

SUCCESSION

23*

Southern Kansas Railway Company*

Under general laws of Kansas| through artl~ oles of consolidation* dated June 6# 1883*. filed in Kansas July 16, 1883*

Consolidated Apr* 16, 1885:, with 18, 22, and 37 to form 17*

24*

Kansas City, Lawrence and Southern Kansas Railroad Company*

Under general laws of Kansas, through arti~ cles of consolidation, dated Bov, 20, 1880* filed in Kansas Deo* 15, 1880*

Consolidated July 16, 1883, with 34 and 35 to form 23*

25*

Southern [email protected] and Western Railroad Company*

tinder general laws of Kansas, Feb* 11, 1879*

Consolidated Dec* 1$, 1880, with 26 and 33 to form 24*

26* Kansas City, Lawrence and Southern Railroad Company*

Under general laws of Kansas, through art!** dee of consolidation, dated March 19, 1879, filed in Kansas Mar*' 29, 1879*

Consolidated Deo* 15, 1880, with 25 and 33, to form 24.

27*

Lawrence & Galveston Railroad Company*

Under general laws of. Kansas, Jan* 27, 1879*

Consolidated .tor, 29, 1879 s with 30 -and 31 to form 26*

28*

Leavenworth* Lawrence h Galveston Railroad company*

See 29*

Sold at foreclosure Aug* 9, 1878, conveyed by deeds dated Oct.■22, 1070, and Jan* 14, 1879, to interests-which oon* veyed property to 27 on Mar* 3, 1879*.

29* L eavenworth, Lawrence & Fort Gibson Railroad Company*

Under special Act of Territory of Kansas, feb* 12, 1858•

Bam© ©hanged, to 28, Feb* 24, 1866*■

30.

Southern Kansas Rail load Company*

Under general laws of Kansas, June 26, 1871*

Consolidated Mar* 29, 1879,- with. 27;and 31 to form 26.

31.

Kansas City and Santa Fe Railroad Company*

Under general laws of Kansas, liar* 8, 1879*

Consolidated M&r* 29, ■1879, with 27 and 31 to form 26*

76 NO,

NAll

INCORPORATION

SUCCESSION

32#

Kansas City and Santa F© Railroad and Telegraph Company#.

Under general laws Kansas,-Mar* 25,

Sold at foreclosure Feb# 4, 1879, conveyed Mar# 3, 1879, to interests which conveyed property to 31 on Maroh 12, 1879*

33. Sumner County Railroad Company#

Under general laws of Kansas, April 5, 1880*

Consolidated Deo* 15, 1880, with 25 and 26 to form 24*

34* Kansas City and Olathe Railroad Company*

Under general laws of Kansas, June 18, 1881*

Consolidated July 16, 1883, with 24 and 35 to form 23*

35*

Ottawa k Burlington Railroad Company#

Under general laws of Kansas,:Feb *-19, 1881#

Consolidated July 16, 1883, "with 24 and 34 to fora 23*"

36* Kanaas City , Burlington and Santa fe Railway Company*

Under general laws...of Kansas, Feb* 4.,•1370*

Sold at foreclosure Jan* 4, 1881, to interests which conveyed property to 35 on March 31* 1881*

37*

The Harper & Western RaiIroa d Company*

Under general laws of Kansas■July 1, 1884*

Consolidated April 16, 1885,:with 18, 22, 23 to.fora 17*

The Burlingame and Northwestern Railway Company*

Under general laws of Kansas, July 29, 1098*

to 1, Apr* 1,

Manhattan, Alma and Burlingame Railway Company*

Under general laws of Kansas, Sept.* 3, 1872#

Sold at foreclosure Apr* .18, 1898, after receiver* ship instituted Feb.* 1, 1895 , and -conveyed June 23, 1393 * to Adiel Sher-* wood, an agent or trustee for the Santa Fe, who by deed"dated .July 30, 1898, conveyed that portion of the property .extending from Burlingame to Alma,-. Kansas, to 38, and abandoned that portion of the property extending from Alma to Manhattan, Kansas-, August 1, 1898*

77 INCORPORATION

SUCCESSION

40i* The Kansas & southeastern Railroad Company*

Under general laws of Kansas, Aug* 16*. 1897*

Sold to 1, Dec* 20, 1899*

41.

The Hutchinson and Southern Railway Company*

Under general laws of Kansas, Deo* 21, 1897*

Sold to 1, Dee* 20, 1899*

42,

The Hutchinson & Southern Railroad Company*

Under general laws of Kansas, through arti­ cles' of consolidation* dated Got* 5* 1889, filed in Kansas O.ot*'7* 1889*

Sold to 41 at foreclosure Ian* 21, 1898, after re- . eeivership hegun Aug* 9, 1893.

43*

The Hutchinson , Oklahoma and Gulf Railway Company*

Under general laws of Kansas, Mar, 7, 1889*

with 44 to form 42*

44*

The McPherson, Texas and Gulf Railroad Company*

Under general laws of Kansas, May 31, 1887,

Consolidated Got* 7, 1889, with 43 to fora 42*

45*

The Kansas* Oklahoma Central and South­ western Railway Company*

Uhder general laws of the Territory of Okla­ homa and State of Kan­ sas, lune 14# 1893# and Aug* 1?, 1894*. respec­ tively*.

Sold at foreclosure ‘ June 29, I9OO, and conveyed to"1, July 2#. 1900*

46* florenae, 11 Dorado and Walnut Valley Railroad Company*

Under general laws of Kansas, Mar, 10, 1877*

Sold to 1, Apr* 10, 1901*

47*

Under general laws of Kansas, through arti­ cles of consolidation, dated May 31# 1886, filed in Kansas May 31, 1886*

Sold to 1, Apr* 10, I90I*

48* The Arkansas River and Western Railroad Company*

Under general laws of Kansas, Aug*. 4, 1885*

Consolidated May 31# 1886.# with 49, 50, 51, 52* 53, 54# .55*' 56# and '5? to fora 47*

49*

Uhder general laws of Kansas, Ho t *. 21, 1885*.

Consolidated May-31* 1886, with 48, 50# 51# 52, 53* 54, 55* 56 and 57 to fora 47.

ho*

make ;

The Chicago* Kansas & ■Western Railroad Company*

The Chicago, Kansas k Western Railway Com­ pany*

Consolidated Got* ?, 1889,

78 INCORPORATION

SUCCESSION

50* Colony, Neosho falls and Western Railroad Company#

Under general laws of Kansas, oeo* 10;, 1885*

Consolidated May 31, 1886, with 48, 49* 51, 52* 53* 54, .55#' 56, and 57 to. form 47*

51.

Bmporia & Eldorado Short Line Railroad Company*

Under general laws of Kansas, Deo* 29# IBS5*

Consolidated May 31* 1886* with 48, 49* 50, 52, 53* 54, 55, 56 and 57 to form 47*

52*

The Independence & South-Western Railroad Company#

Under general laws of ■ Kansas., Inly 25* 1885*

Consolidated May 31* 1886, with 48* 49, 50, 51, 53* 54, 55*. 56, 'and 57 to ; form 47*

53* Kansa s, Oklahoma and Texas Railway Company*,

Under general laws of Kansas, Sept* 10, 1885*

Consolidated May 31, 1886, with 48, 49, 50, 51, 52* 54, 55# 56, and 5? to -" form 47*

54*

Leroy h Western Railway Company*

Under general laws of Kansas, Mot * 27, 1885*

Consolidated May 31, 1886, with 48, 49, 5-0* 51* 52* 53* 55* 56, and 57 to form 47*

55*

Ottawa, Osage City and Connell dreve Rail Road Company#

general laws of Kansas, Aug* 18, 1883*

Consolidated May 31* 1886, with 48* 49, 50* 51, 52, 53* 54, 56* and 57 to . form 47*

56* The Pawnee Talley and Danwer Railroad Company*

Under general laws of Kansaa,,Sept * 28, 1885*

Consolidated May 31, 1886, with 48* 49* 56* 51, 52, 53, 54* 55*'and'57 to form 47*

57* The Walnut Talley & Colorado Hallroad Company*

Under general laws of Kansas, Aug'# 26, 1885*

Consolidated May 31, 1886# with 48, 49, 50, 31* 5-2, 53, 54, 55* and 56 to form 47*

58#

Uhder general laws of Kansas, July 28, 1886*

Sold to-.47, Jam* 1* 1890,'

Under general laws of Kansas, through arti­ cles of c©nso1IdatIon, dated Sept# 6, 1882, filed in Kansas

Sold to 1, Apr* 10, 1901*'

MG*

$W 33

The southern Kansas and Panhandle Railroad Company#

59* Kansas City, Imporia and Southern Railway Company#

Dot* 8* 1882#

79 HO,

NAME

1H00HP0R4TIOH

SUCCESSION

60,

Kansas City* Emporia and Southern Railroad Company,

Under general laws of Kansas, Jan. 23, ■1677.

Consolidated Oct* 6, 1882, with 61 to form 59*

61*

The Ilk and dhatauq.ua Railroad Company*

Under general laws of Kansas, Deo# 13, 1878*

Consolidated Cot* 6, 1882, with 60 to form 59.

62* Marlon and McPherson Railway Company*

Under general laws of Kansas, through arti­ cles of consolidation, dated Sept* 6, 1882, filed In Kansas . Cot* 6, 1882*

Sold to X, Apr* 10, 1901*

63* The Marion and Methereon Railroad Company*

Under general laws of Kansas, Hot* 5, 1878*

Consolidated Get* 6, 1882, with 64 to form 62*

Uhder general laws of Kansas, Fan* 1, 1881*

Consolidated Got* 6, 1882, with 63 to form 62*

64*

Marion and McPherson Extension Railroad Company*

65. Wichita and Southwestern Under general laws of Railway Company.* Kansa &, through artioles of consolidation* dated Sept* 8, 1882, filed in Kansas Cot* 6, 1882:# ■ :

Sold -to 1, Apr* 10, 1901*

Under general laws of Kansas, June 22, 1871#

Consolidated Dot* 6, 1882, with 6? and -68 to form .65*.

Under general laws of Kansas, Cot* 28, 1878*

Consolidated Got* 6.,' 1882, wi%..66 and 68 to form ■65* ■

Under general : ■laws of Kansas, Dee* 6, 1880*

Consolidated-Get# 6, 1882, with 66 and 67 to form 65*

69* The Montgomery County Bailway -Company#

Under general laws ■of = Kansas,-Apr* 4, 1903*

Sold to 1, Opt* 24, 1903*

70*

Under general laws of Kansas, July 13, 1899*

Sold homa Mar* pany June

66*

Wichita and South Western Rail Road Company*

67* The Cowley,. Sumner and Fort Smith Railroad Company* 68*

The Harrey County Railroad Company,

The Kiowa, Ghichasha, and Fort smith Railway Company*

to The lastexa Okla­ Railway Uompany 1 14, 19041 whioh -oom* was -sold -to. 1, 20, 1907*

M3U5

INCORPORATION

SUCCESSION

The Denver, Kansas and Gulf Railroad Company*

See 72*

Sold to The Denver, Bnld and Gulf Railroad Company, Apr* 3* 1907, which company was sold to The Eastern Oklahoma Railway Company on May22, 190?* The latter company « i conveyed to 1, June.20, 1907*

The Denver, Kansas and Gulf Railroad Company*

Under general laws of Kansas, Aug* 18, 1905*

Nam© changed to 71* Get* .17, 1905*

ai fhe road wholly owned by the Atchison* Topeka and Santa F® Hailway in Kansas has been acquired partly through foreclosure and reorganization of the Atchison, Topeka end Santa F© Rail Road Company; partly through sub­ sequent purchases, construction end completion of construc­ tion and completion of construction begun by a predecessor company#

Of th© corporations which comprise the line of

succession in Kansas, culmination in the Atchison, Topeka and Santa F© Railway as at present constituted, the three following named corporations did not construct or improve any property;* Lawrence and Carbondale Railway Company; The Hutchinson, Oklahoma end Gulf Railway Company; Th© McPherson, Texas and Gulf Railway Company# Th© following acquired property from predecessors, but either those predecessors have no records or the records reviewed do not show whether th®y improved such property while they owned it;2 St# Louis, Lawrence and Denver Railroad Company; Th© Crawford County Railroad Company; Lawrence & Galveston Railroad Company; Kansas City and Santa Fe Railroad Company; end Ottawa & Burlington Railroad Compeny. The following named roads improved property completed by others:^ The Wichita & Western Railway Company; St. Louis, Lawrence and Western Railroad Company; Th© Kansas Southern Railway Company; *

127 I. C. C. 212.

3 iff!:, p. 213.

82 Southern Kansas Hallway Company; Kansas City, Lawrence and Southern Kansas Railroad Company; Kansas City, Lawrence and Southern Railroad Company; The Burlingame ©nd northwestern Railway Company; nd Marion and McPherson Railway Company, Th© data with respect to miles of road construct­ ed by the remaining Kansas corporations, the years in which the various portions of the line were constructed, and the manner in which the Atchison, Topefce and Santa F© Railway acquired the property are shown in the following table, wherein-*to facilitate comparison with the table previously givea«the same order of corporation© is maintained:1

1

127 I. 0. 0. 213-219

83 Table 4 Mileage of th© Atchison, Topeka and Santa Fe Railway Company in Kansas Recorded miles# Constructed by th© Atchison, Topeka and Santa Fe Railway Company: At Carden City* Kansas, 1911 At Dodge City, Kansas, 1913

0,25 0.04

Construsted partly by The Montgomery County Railway Company and Completed by the Atchison, Topeka and Santa f© Railway Company, Havana to Caney, Kan­ sas* 1903

5.39

5.68

Acquired through reorganization committee, from th© Atchison, Topeka and Sant© Fe Rail Road Company* Dec* 12, 1895, and constructed by that company: Topeka to Burlingame, Kansas, I869 Burlingame to Emporia, Kansas, 1870 Emporia to Newton, Kansas, 1871 Newton, Kansas to Kansas-Colorado state line, 1872 Atchison to Topeka, Kansas, 1872

26.6? 33.63 73*60 283.04 50.46

Acquired by purchase: From The 'Wichita & Western Railway Com­ pany, Dec. 31, 1898: Constructed by the Wichita and Western Railroad Company Wichita to Kingman, Kansas, 18831884 Constructed by Th© Kingman, Pratt & V/©stera Railroad Company Kingman, Kansas, to west ling of Kiowa Gouhty, Kansas, 18861887 Less mileage abandoned by The Wichita & Western Hailway Company, Dee# 10, 1895;

44.93

79.71

467.42

34

Pratt, Kansas, to west line of Kiowa County, Kansas From the Kansas City, Topeka ©nd western Railroad Company, Feb. 15» 1399® Constructed by The Lawrence and Topeka Railway Company Lawrence to Topeka, Kansas, 1371 Constructed by the Kansas Midland Rail Road Company Missouri-Kensas state line to Corliss, Kansas, 1375 ®nd placed in operation by the Kansas City, Topeka and Western Railroad Com­ pany, Oct* 1, 1875 Constructed by The St. Louis, Lawrence and Denver Rail Road Company Lawrence to Corliss, Kansas, I865 Less5 That part constructed partly by The St* Louia, Lawrence & Denver Rail Road Company and completed by The St. Louis Lawrence & Denver Railroad Com­ pany, Corliss, Kansas to Pleasant Hill, Missouri, 1865*1371* Sold at fore­ closure sale Feb* 23, 1877, end con­ veyed on Mar* 6, 1377 to parties who, by deed of Cot. 18, 1877, conveyed to Pleasant Hill and D© Soto Railroad Company* (In Kansas)

44.85

26*36

21*90 16*52

22.95

From th© Leavenworth, Northern end Southern Railway Company, Feb. 15, 1899 5 Constructed by that company Hawthorn© to Wilder, Kansas, Dec., 1886, to Nov. 1, 1887 From The Southern Kansas Railway Company, Feb* 15, 1899s Constructed partly by The Harper & Western Railroad Company and com­ pleted by The Southern Kansas Rail­ way Company Attica, Kansas to the KansasOklehome state line, near Kiowa, Kansas, 1884-Aug. 6, 1885 Attica to Medicine Lodge, Kansas 1884-Jan* 11, 1886 Constructed by Th© Southern Kansas Railway Company

79.79

41*83

45*37

22*41 21.01

85

Arkansas City , Kansas to KansasGklehorns state line, 1086-June 12, 188? 3.99 Girard, to Pittsburg, Kansas, placed in operation,June 12, 1887 12.39 Constructed by Th© Nebraska, Topeka, Xola and Memphis Railroad Company Girard to Walnut, Kansas, 1882May 1, 1883 16.00 Constructed by the Kansas Southern Railroad Company Ch.©nute to Walnut, Kansas, placed in operation Jan. 1,1884 24.28 (This company also acquired during 1883 ®ud 1884 certain right of way and an undetermined amount of engi­ neering and grading between Inde­ pendence and Elgin, Kansas, sub­ sequently used by The Independence & South-Western Railroad Company and The Chicago, Kansas & Western Ra tiros d Comps ny•) Constructed by The Kansas City and Emporia Railroad Company North Ottawa to Emporia, Kansas, 1883-Feb. 1, 1884 54.19 Constructed by the Southern Kansas and Western Railroad Company Independence to Harper, Kansas, 1879-1880 137.51 Constructed by the Leavenworth, Lawrence & Galveston Railroad Company Lawrence to Coffeyville, Kansas, 1867-/ug. 28, 1871 142.82 Constructed by Southern Kansas Rail Road Company Cherryval© to Independence, Kansas, {Prior to 1879) 9.70 Constructed by the Kansas City and Santa F© Railroad end Telegraph Company Olath© to North Ottawa, Kansas, placed in operation Aug. 22, 1870 32*20 Constructed by the Sumner County Railroad Company Wellington to Hunnewell, Kansas, placed in operation June 16, 1880 18.32 Construeted by the Kansas City and Olath© Railroad Company

86

Olath© to Holliday Junction, Kansas, placed In op©i*ation June 1, 1862 Constructed by th© Kansas City, Burlington and Santa Fe Hallway Com­ pany Burlington Junction to Burlington, Kansas, 1877-April 1, 18?8 Constructed by The Harper & V,©stern Railroad Company Harper to Attica, Kansas, placed in operation Nov* 10, 1884 From Th© Burlingame and Northwestern Railway Company, April 1, 1899 J Constructed by the Manhattan, Alma and Burlingame Railway Company Burlingame to Manhattan, Kansas, 1880 less mileage abandoned by /dial Sherwood, trustee, Alma to Manhattan, Kansas, Aug# 1, 1898 From The Hutchinson and Southern Hall­ way Company, Dec. 20, 1899* Constructed by The Hutchinson & Southern Railroad Company Hutchinson to Kingman,Kansas, 1889 Kingman, Kansas, to KansasG&lahoms state line, 1890 From the Florence, El Dorado and Walnut Valley Railroad Company, April 10, 1901: Constructed by above company Florence to El Dorado, Kansas, placed in operation Aug# 1, 1877 El Dorado to Douglas, Kansas, placed in operation Aug* 1, 1881 Douglas to Winfield, Kansas, placed in operation, Nov. 1, 1886 less revisions From The Chicago, Kansas & Western Railroad Company, April 10, 1901: Constructed by above company Gladstone, Kansas to KaasesNebrasfca state line, 1886-1888 Abilene to Selina, Kansas* 1887** Nov. 15, 188? Manchester to Barnard, Kansas, placed in operation Jan. 1, 1888

14.10

41.40

11.46

561.78

56.62 22.39

34.23

31.58 48.10

79.68

29.32 24.27 19.14 1.15

162.72 22.55 43.38

71.58

£7 Little River to Holyrood, Kansas, 1886-1887 Augusta to Mulvene, Kansas, 1886Oct. 1, 1887 Benedict function to Madison function, Kansas, 1886-ley 1, 1887 (Certain preliminary survey for th© line from Benedict Junction to Madison Junction, Kansas, was Biade by The Chicago, Kansas & Western Bailway Company during 1886.) Constructed pertly by Th© Arkansas River and Western Railroad Company end completed by The QhSbesgo, Kansas & Western Railroad Company Hutchinson to Kinsley, Kansas, 1885-Jam 1, 188? Constructed partly by The Chicago, Kansas & Western Railway Company and completed by The Chicago, Kansas & Western Railroad Company Burlington to Gridley, Kansas, 1885-May 1, 1887 Constructed partly by th© Colony, Heosho Falls and Western Railroad Company and completed by The Chicago, Kansas & Western Railroad Company Colony to Yates Center, Kansas, 1886-Aug. 1, 1887 Constructed partly by the Emporia & II Borado Short Line Railroad Company end completed by the Chicago, Kansas & Western Railroad Company Ellinor to Bazar, Kansas, 1885Oct. 1, 1887 Constructed partly by Th© Independ­ ence & South-Western Railroad Company and completed by The Chicago, Kan­ sas & Western Railroad Company Independence to Ge&arvale, Kan­ sas, 1885-Jan. 1, 188? (Certain right of way and an undetermined amount of engineer­ ing and grading used for this line had been acquired by the Kansas Southern Railroad Company during 1883 and 1884*)

30.27 20.41 40.61

84.23

10.89

24.74

10.00

54.71

B8 Constructed partly by the Kansas, Oklahoma and Texas Railway Com­ pany ©nd completed by Th© Ghiesgo, Kansas & ?/@st©rn Railway Company Ohanute to Longton, Kansas, 1885-Jan. 1* IBB? Constructed partly by th© Leroy & Western Railway Company, and com­ pleted by The Chicago, Kansas & Western Railroad Company Mulvane, Kansas to east line of Clerk County, Kansas, 1885-1687 Constructed partly by th© Ottawa, Osage City and Council Grove Rail Road Company ©nd oompleted by Th© Chicago, Kansas & Western Railroad Company Osage City to ^uenemo, Kansas, 1885-Jan. 1, 188? Constructed partly by The Pawn©© Valley end Denver Railroad Company and completed by Th© Chicago, Kan­ sas & Western Railroad Company Lamed to Jetmore, Kansas 18851887 Constructed partly by The Walnut Valley & Colorado Railroad Gompaxiy and completed by Th© Chicago, Kan­ sas & Western Railroad Company Great Bend to Selkirk, Kansas, 1885-1868 Construct©d by Th© Southern Kansas and Panhandle Railroad Company East line of Clark County, Kan­ sas to Englewood, Kansas, 18861BBB Less mileage abandoned by Th© Chicago, Kansas & Western Railroad Company: Abandonment end revision of line near strong City, Kansas 5*94 Revision of line between Little River and Holyrood, Kansas 3*96 Ellinor to Gladstone, Kansas abandoned 3*23 Scott City to Selkirk, Kan­ sas, abandoned Ray 3, 1896 35.23

43*33'

138.01

19*45

46.33

155.50

28.34

48.36

887*13

89 From the Kansas City, Emporia and Southern Railway Company, April 10, 1901s Constructed by above company Howard to Moline, Kansas, 1896 Constructed by the Kansas City, Emporia and Southern Railroad Company Emporia, Kansas to the south line of Greenwood County, Kansas, placed in operation Oct, 1, 1879 Constructed by The Elk and Chatauq.ua Railroad Company South line of Greenwood County, Kansas to Howard, Kansas, 1879Dot* 1* 1880 From the Marlon and McPherson Railway Company, April 10, 1901: Constructed by The Marion ©nd McPherson Railroad Company Florence, Kansas to th© east line of Barton County, Kansas, 18791880 Constructed by the Marion ©nd McPherson Extension Railroad Company last line of Barton County, Kan­ sas to Ellinwood, Kansas, placed in operation Sept* 1, 1881 From the Wichita and Southwestern Railway Company, April 10, 1901s Constructed by th® ©have company Wellington, Kansas to a con­ nection with the railroad of The Southern Kansas Railway Company, 1887 Constructed by th© Wichita ©nd South Western Rail Road Company Newton to Wichita, Kansas, 1871-May*

1872

Constructed by Th© Cowley, Sumner ©nd Fort Smith Railroad Company Wichita to Arkansas City, Kan­ sas, placed in operation Jan* 1, 1880 Mulvane to Caldwell, Kansas, 1879-June 15,1880

7*20

63*93

12,16

83.29

93*09

3*21

2*62

27*12

51*05 44.17

98*30

90 Less revision of line by that company between Wichita and Arkansas City, Kansas Mulvane and Wellington, Kansas Constructed by The Harvey County Railroad Company Sedgwick to Halstead, Kansas, placed in operation Jan* 1, 1882 Less mileage abandoned by the Wichita and Southwestern Railway Company Wellington, Kansas to a connection with the railroad of The Southern Kansas Railway Company Sedgwick to Halstead, Kansas, December 15, 1895 From The Eastern Oklahoma Railway Company, J'un© 20, 190? t Constamoted by The Denver, Kan­ sas and Gulf Railway Company Oklahoms-Kansas state line near Kiowa, Kansas to Belvidere, Kansas, 1906-1907 Total

1,04 3*58

8* 89

2*62 8*89

117*72

49*30 2*646.05

91 The Dod^e City and Cimarron Valley Railway Company la © Kansas corporation# haTing its principal office at Dodge City, Kansas#1

It is controlled by the Atchison,

Topeka and Santa F© Railway, which owns its entire capital stock#2

’ The property of this railway has always been operat­

ed under lease by the .Atchison, Topeka and Santa Fe Railway, The Dodge City and Cimarron Valley Railway was Incorporated November 17# 1911# under the general laws of the state of Kansas*^ The mileage owned by this road, amounting to 119*403 miles, extending from Dodge City to Elkhart# Kansas, was constructed for it by the Atchison, Topeka and Sant© Fe Railway during the period from November, 1911 to July 1, 1913.4 The Garden City, Gulf and Northern is a cor­ poration of the state of Kansas, having its principal office at Garden City, Kansas#

It is controlled by the /tchison,

Topeka and Santa Fe Railway through ownership of ©bout 98 per cent of its capital stock.

The property of the Garden

City, Gulf and Northern extends from Garden City to Scott City, Kansas#

This property has always been operated under

leas© by the Atchison, Topeka end Santa Fe Railway.^

I

127 1. c. c. 311. Idem* 3 t e h .. p. 312. j Idem. 5 H H » . p. 315.

92 The Garden City, Gulf and northern was incor­ porated January 4# 1907# under the general lews of the state of Kansas. **“ The mileage owned# amounting to 37*335 miles, was constructed for it by the Kansas Construction & Irriga­ tion Company.

The construction work was begun in 1907#

and the road was completed and placed in operation early in 1910.2 The Garden City# Gulf and northern had issued capital stock to June 30 , 1916# for the following recorded %

consideration:^ Cash | 10,420. Construction performed under contract by the Kansas Construction & Irrigation Company 508,230. County and township bonds acquired# par value1* 79#500* Short-term notes reacquired, par value 850. 1599,000. The Garden City Gulf end Northern issued #600,000 par value of its first-mortgage 6 per cent bonds, all of which were delivered at par to the Kansas Construction & Irrigation Company In part payment for construction per­ formed under contract*^ * 2

127 I. c. C. 316. Idem.

3

Idem.

4

Ibid.. p. 319.

Finney County# Kansas Valley Township* Kansas Scott Township, ScottCounty, Kansas 5

127 I. C. C. 317.

#47*000. 20,500. 12.000. §79, $00.

93 Under an agreement of June 29, 1910, the Atchison, Topeka and Santa Fe Railway purchased in July, 1910, from

the Kansas Construction & Irrigation Company #519*500 par value of the capital stock and the entire issue of bonds, #600,000 par value, for $463*978.70 oash.^

1 127 I. 0. C, 317.

94 Provision for til© construction of © railroad from th© Missouri River across Kansas Territory to the Southwest was first mad© in the charter of the St. Joseph and Topeka Railroad Company, approved by the Territorial Legislature FebfUary 10, 1857#

Th© road, as projected, was to be built

from St* Joseph^Missouri, opposite Elwood, Doniphan county, across the Missouri, through Doniphan, Atchison and Jefferson counties to Topeka*

The charter was later ©mended,

permitting extension of the road to the southern or western line of the Territory in the direction of Santa Fe, thus authorizing its location over essentially the present route of the Atchison, Topeka and Santa Fe Railway. The desire for prompt and direct railroad com­ munication with the Missouri Hiver led the citizens of Topeka and other inhabitants of the Territory along the line of the proposed rout© to look with favor upon it, although its eastern terminus was beyond the territorial limits of Kansas* The citizens of Atchison desired to make their thriving town the terminus of © great transcontinental system and were strongly opposed to © project— just than taking form— which would at best make Atchison but a way station on the greet road and might pesa it by entirely. To avert the threat to its future it was determined, if possible, to make 'tchison the ©©stern terminus of the proposed road*

The city accordingly loaned its credit to

95 the ©mount of $150,000;^ aided by this subsidy, e railway was built on th© Missouri side of the river from St. Joseph to s point opposite Atchison, then across th© Missouri. Then, under another charter, with Atchison, Kansas, instead of St. Joseph, Missouri# as the eastern terminus, th© enterprise was pressed#

Th© people of th© Territory were

more enthusiastic In support of the new project because it promised the same advantages as the otherewith the added prestige of being wholly a Kansas corporation. The Atchison and Topeka Railroad Company was incorporated by Act of the Territorial Legislature, dated February 11, Act weret

Hamed as incorporators by the

3* 0* Pomeroy, Atchison; C» K* Holliday, Topeka;

Luther 0* Challiss, Atchison; Peter T* /bell, Atchison; Milton 0. Dickey, Topeka; Asaph Allen, Topeka; Samuel Dickson, Atchison; Wilson L. Gordon, Topeka; George S. Hillyer, Grasshopper Falls; Lorenzo D. Bird, Atchison; leremiah Murphy, Topeka; Georg© K* Fairchild, Atchison; and F# L. Crane, Topeka*

The charter authorized th© company

*# . .to survey, locate construct, complete, alter, maintain and operate a railroad with one or more tracks, from or near Atchison in Kansas Territory to the town of Topek© in Kansas Territory, and to such point on th© southern or western boundary of said Territory, in the direction of Santa Fe, as may be convenient and suitable for th© con­ struction of said road, end also to construct a branch to any point on the southern line of said Territory in the direction of the Gulf of Mexico," ^

Ingalls, John J., History of tchiaon County, p. 175* Private Laws of Kansas7"Territory. 'p* 57 (1859).

96 The authorized stock was #1,500,000, with per­ mission to increase to such amount as should be required in the course of construction of the road* The first meeting for organization under the charter was held at the office of Luther 0# Challiss, in /1chison on September 15* 1859.

this meeting & 52*000 of the

initial subscription was paid to enable a preliminary survey to be mad©.^

The first Board of Dii'eetors and

officers were also chosen at this meeting.

As Directors

were designated L* 0* Challiss, Georg© H* Fairchild, p. T* Abell* 8, 0. Pomeroy, L* D. Bird* C. £. Holliday, F* L. Oran©, K* G* Ross, Joel Huntoon, M* 0. Dickey, Jacob Ssfford, H. H* Weightman and J. H. [email protected]*

Officers chosen

were 0* K# Holliday, President; P. T, Abell, Secretary; and M* C* Dickey, Treasurer* The terrible drought of 1860 wholly paralyzed every business enterprise of the Territory and, with the organisation completed as stated above, work on the road was held in abeyance until more propitious times should warrant a beginning thet might promise success*

The famine

was so complete and general as to impoverish the whole farming community*2

In th© natural course of events,

even should no farther disasters befall them, it seemed ^ 2

Andress, A* T., History of Kansas* p.,243 {1883)• Gliok. George V\:.7 ""The ‘Drought'of I860.Tt Kansas Historical Collections* vol* 9, p. 480 11905-1906J,

97 unlikely that th© settler© could so far recuperate as to render any adequate aid to the project for years to come, At this Juncture the directors determined to pres© th© claims of Kansas for a national subsidy, end, as early as the session of 1859-60, C* K« Holliday and his associates were in Washington working with discretionary zeal for a land grant for the great transcontinental rail­ way,

At length the desired aid was obtained#

On March

3, 1863,^ by Act of Congress, a grant of land was made to the State of Kansas, giving alternate sections, one mile square, ten in width, on either side of the proposed road, amounting to 6,400 acres per mile, on condition that the road should be finished within, or at the expiration of, ten years from the approval of th© Act*

The grant was

accepted by the state and transferred to th® Atchison. Topeka and Santa Fe Rail Hoad:2 & new charter had been granted by th© Kansas Legislature March 3, 1863, to th© corporation named, absorbing the rights end franchises of th® Atchison and Topeka Railroad Company as of February 9, 1864* These being the years of th© Civil War, with Kansas deeply involved, little could b© done further than to maintain the organization and hold secure the land grant conferred as a basis of credit for th© ultimate com­ pletion of th© road# ^ 2

February 17, 1864, eight days after

Hhlted States Statutes at Larger vol* 12, p# 772 (1863)• Laws'of a « 'p»r149 (1864)*

93 the land grant was legally available to the corporation, a meeting of stockholders was held to elect officers and transact such other business as the new order of things required*

Chosen as directors were S. C. Pomeroy, L. C*

Challiss, B* F* stringf ©How, Atchison; B. L. Lakin, Jefferson County; 0* K. Holliday, F. L* Crane, Jacob Safford, Topeka; H» W. Farnsworth, Kaw Agency; s. H* Wood, Council Grove; Joseph Frost, Lyon county; w* R* Saunders, Coffey county; and W* F. U* Arny, Sants re. The officers selected were S. 0. Pomeroy, President; S* H. Wood, ¥ioe President; C. K. Holliday, Secretary; and B* L. lakin, Treasurer. A cormaittee, consisting of Jacob Safford, G. K. Holli&sy and D. L. Lakin, was appointed to draft e bill end secure its passage through the Hanses Legisleture, authorizing the counties along the proposed line to loan their credit to the road by issuing bonds in exchange for stock of the company*

This committee had the distinction

of framing and presenting the measure v/hich, passed on March 1, 1864,^ inaugurated grant of local subsidies to railroads in Kansas.

In accordance vd.th the provisions

of this law "The counties of /tchison, Jefferson, Shawnee, and ell other counties through or near which the proposed lines of th© 1

tchison, Topeka and Santa Fe Hail Road and

Lews of Kansas. p. 35 (1864)*

99 it® branches shall peso, are each h e r e b y empowered to take stock In the company and to issue bonds for the same* not to exceed the amount of $200,000 dollars•”

Such bonds were

not to be Issued, however, except bb t h © proposal had been submitted to, and accepted by, the voters of each county* In 1365,

another

ct was passed which provided that "The

board of county commissioners of any county, to, into, through, from, or near which, any railroad may be located, may subscribe to the capital stock of any railroad cor­ poration not to exceed $300,000*"

Subsequent legislation

enabled townships and municipalities to exchange their bonds for stock in railroad companies.

Under these acts

the Atchison, Topeka and Santa Fe Hail Road had received, by the close of 1883, $683*500.2 A committee was appointed to open books and procure subscriptions for the stock.

They were to offer

the stock first to citizens of the state and, failing thus to procure the needed support, were to solicit funds in eastern monetary centers.

Th© committee consisted of s. 0.

Pomeroy, 3. H. Wood, Jacob Safford and C. K* Holliday. G. K. Holliday, one of the stock committee before mentioned, went to Hew York during the spring of 1864, and there first presented the merits of the project to the attention of eastern capitalists, vdth a view to placing

1 2

haws of Kansas, p. 41 (186$), Boerff of Railroad Commissloners, Hanses, First /nnual Report. pp. 42-46 (1883).

3

Andreas, /* T . , op. cit.. p. 2^3.

100 til© stock and contracting or otherwise providing for building th© road.

H© returned without having completed any definite

arrangement, but reported progress.

3. 0. Pomeroy, taking

up th© work where Mr# Holliday had left it, went to New York and, early in 1865, closed negotiations with one Willis Gaylord; sufficient stock was sold end credit other­ wise secured to warrant Initiating construction*

Th© com­

pany entered into an agreement with George b* Beach, dated October 12, 1867, for construction of its line from Parnell, Kansas, to the western boundary line of the state.^

Mr*

Beach cam© to Topeka with a view to beginning the work*

He

aeems to have been a zaan of good intentions, great pretentions, and of more than ordinary executive ability.

He lacked,

however, the money required to start the undertaking, and could not inspire his associates with sufficient confidence to induce them to invest under his management.

It is un­

necessary to recount the various but always futile attempts mad© by him even to begin th© work.

The directors, \^ho were

powerless to tek© further action until th© expiration of his contract, became increasingly impatient at the delay. In the spring of 1868 C. K. Holliday, D. L. Lakin and Jacob Safford, while In New York, met Thomas J. Peter, then s civil engineer of acknowledged ability, who had been for years successfully engaged In railroad building in the western states.

They prevailed on him to visit Kansas and

look into th© merits of their project, then inactive because

1 127 I. 0. C. 360.

101 of Beach's failure*

His visit resulted in the transfer of

Mr* Beachfs interest to a new construction company.

The

new organization* with Mr* Peter as Chief Engineer and General Manager, combined all the elements essential to success, viz .i

the best engineering skill, practical

energy, and the commend of ample credit and ready means* The members of the construction company were;

T. J. Peter,

Charles W* Piero©, Carlos Pierce, Henry Keyes, C. K. Holliday, D« L. Lakin, M. L* Sargent, end Jacob Safford, all of Kan­ sas; Esmonds Raymond, Boston; A* P. Balch, Hanover, M. H * ; Thomas Sherlock, Georg© A. Hill, H. 0. Lord, N. Lord, Jr., F# Bodge and H* Stearnes, Cincinnati; 0. J. Brosdwell, flillis Gaylord, G* Opdyke, Dr. Caswell, J. W. Ellis, Perkins, Livingstone & Post, New York; A. E. Burnside, Rhode Island; B. M* Smith and w* Dennison, Columbus, Ohio* In November, 1868, nearly ten years after the granting of th© first charter, th© work of building the road was begun at Topeka by the construction company under the direction of Thomas J. Peter.

The first objective of the

road, as it was driven southwest, was the coal region of Osage county#

Construction was completed to Burlingame by

th© Atchison Associates, th© name of th© construction com­ pany organized by Mr. Peter,•** at which point the contract was canceled by th© Rail Road Company; almost oil members of th© Atchison Associates were also stockholders in the

1

127 I. c, C. 360.

102 road, and construction was continued to completion under the direction of the Atchison, Topeka end Sente Fe Rail Road Company, Mr* Beach remaining as th© General Manager until the road was finished*

Progress and mileage appear In th©

paragraph following* Hoed commenced at Topeka in October, 1868; opened to Garbondale, 18 miles from Topeka, July, 1869; to Burlingame, 2? miles, September, 1869J to Osage City, 35 miles, May, 1870; to Reading, 45 miles, June 1870; to Emporia, 62 miles, July 1870; to Cottonwood, 82 miles, March 1871; to Florence, 107 miles, May 1871; to Peabody, 119 miles, June IS?!; to Newton, 136 miles, July 18?1; to Sedgwick, 147 miles, April 1872; to Wichita, 163 miles, May 1872; Atchison to Topeka, 49 miles, May 18?2; Newton to Hutchinson, 217 Biles from Atchison, June 1872; to Great Bend, 269 miles, July 1872; to Earned 291 miles, August 1872; to Dodge City, 351 miles, September 1872; to th© western state line, 470 miles, Dec­ ember 23, 1872*

Th© complete time required for construction,

once work began, was four years and three months.1 Th© government land grant as of March 3, 1863, previously mentioned, aggregating almost 3,000,000 acres in alternate sections extending to a depth of ten miles on each side of the road for its entire length in the state of Kansas was thus secured to th© Rail Road.

In cases where

title to lands granted had already passed, other lands were 1

Andres a, A, T. ,

op

.

olt.. p. 2

103 to be designated and conveyed in their stead.

At the time

of the grant the ©astern portion of th© state had been generally occupied by settlers; her© the grant was extended to e depth of twenty miles, the presumption being that this was sufficient to provide for replacement in occupied terri­ tory*

Under this arrangement the grant wss located as

follows;

th© eastern line of th© grant crossed the road at

Elinor, Chase county, extending northwesterly twenty miles to near th© center of Morris county, and southeasterly from the same point, twenty miles, to near th© southeast corner of Chase county#

V»rest from this point, th© grant

embraced alternate sections, twenty miles on each side of the road, for a distance of 187 miles to Nettleton on the dividing line of Pawnee and Edwards counties; thence to the western boundary of th© state, the grant comprised alternate sections for a distance of ten miles on each side of the railroad.

In these counties the twenty-mile width on each side was applicable;

Morris, south of Council Grove;

Chase, almost entire; Marion, almost entire; Butler, north­ west corner; Harvey, entire; McPherson, soutn half; Reno, a H , except southwest oorner; Rice, all, except northeast corner; Stafford, north three-fourths; Barton, south seveneights; Pawnee, almost entire; and southeast corner of Rush, In these counties th© grant extended but ten miles on each side;

Edwards, north half; Ford, north half; Hodgeman, south

quarter; Gray, middle half; Sequoyah, middle half; Kearney,

104

south two-thirds; Hamilton, north two-thirds.1 In addition to the land grant along the line of th© railroad, the company purchased under the provisions of a treaty with the Pottawatomie Indian tribe © large tract of their reservation in August, 1668* of land embraced 338,766 acres.2

This tract

The Leavenworth, Pawnee

6 Western Bailway Company, In whom the right to purchase the land was first vested, having declined to purchase It, the Atchison, Topeka and Santa Fe Bail Hoad Company bought the land for on© dollar an acre*

It was located in the

counties of Pottawatomie, Jackson, and Shawnee.

The com­

pany mortgaged these lands for #800,000, which greatly elded in the early construction of the

r a i l r o a d *

3

The Atchison, Topeka and Santa Fe Rail Road Company was placed in receivership December 24, 18935 its properties were sold et foreclosure sale December 10, 1893 to The

tchison, Topeka and Santa Fe Railway Company

incorporated under th© general lews of Kansas, December 12, 1695, which has since operated end extended those properties *5 The Atchison, Topeka and Santa Fe Rail Road Company was not controlled by any individual, association, or coloration on the date of reorganization.

It then con­

trolled, however, the Kansas companiesnamed below J 2

^ 7

*

through

Andreas, A* T., on* pit**p* 244. Wilder, Daniel W * , Annals of Kansas* p. 640 (1875)* Andreas, * T*, ^p • 245"* Cited hereinafter as "Sent© Be." 127 X* 0 . C* 207 .

105

stock ownershipA Controlled companies whose properties were operated under lease by the receivers of the Atchison, Topeka and Santa F© Hail Hoad Company: Th© Chicago, Kansas & Western Railroad Company; Florence* ElDorado and Walnut Talley Railroad Company; Kansas City, Topeka and Western Railroad Company; Kansas City, Kmporia and Southern Railway Company; Leavenworth, Northern and Southern Railway Company; Marion and McPherson Railway Company; and Wichita and Southwestern Railway Company. Th© following company was controlled through other subsidiary companies, whose property was operated under lease by the receivers of the Atchison, Topeka end Santa .Fe Hall Road Company: The Southern Kansas Railway Company* Controlled companies whose properties were not operated by the receivers of the Atchison, Topeka and Sant© Fe Hail Road Company: Leavenworth, Topeka and South Western Railway Company (controlled jointly with the Union Pacific Railway Company); Manhattan, Alma and Burlingame Railway Company (controlled jointly with th© Union Pacific Railway Company); end The Wichita & Western Hallway Company (controlled jointly with the St* Louis and San Francisco Rail­ way Company) * The property of the Atchison, Topeka and Santa P© Rail Road Company was operated by its own organization from the date its first section of road was pieced in operation during 1869 until the receivership, December 23, 1893, ©nd by receivers from December 24, 1893, to December 31, 1895* * 4

The railroad operated by the receivers on the

127 I. 0. C. 359. Idem,

106 date of r©organisation consisted of a standard-gauge steam railroad^ of which 467*42 miles were owned, the remainder being operated under

lease

*2

The construction of the line from Topeka to Burlingame, 2? miles, was under the direction of the Atchison Associate©, but the construction contracts with the Associates were canceled and the work completed by the Atchison, Topeka and Santa Fe Hail Hoad

C o m p a n y *

^

since records of th©

Associates have not been obtained, no information regarding their financial activities can be given, except that in Hay, 1871, the Atchison, Topeka and Santa Fe Kail Hoed Company recorded the following items in its own accounts, stated to be balances transferred from, th© books of th© Associates*^ Credits to stock and funde&^debt accounts, as indicated below, stated to represent securities of th© railroad company which had been issued to th© Associates to finance the construction work: Capital stock,par value First«-mortgag© 7 per oent bonds, par value Pottawatomie reserve la nd-mortgage bonds, par value Total

fl,088,700*00 192,000.00 768*500.00 $2*049.200.00

Debits to: Investment in road and equipment stated to represent the Associates* *

Except as comment is made to the contrary— *all lines under consideration are of the type described by this phrase. * 127 I. 0. C. 360. f Idem. 4

107 expenditures for construction and equipment

#

749*309*06

*fDistribution a c c o u n t l a t e r transferred to Investments in Hoad and Kqaipment, stated to represent bonuses given by the Assoclatee in connection with selling securities of th® railroad company

1,093*300.00

Profit and loss account, 3bated to represent th© 'ssoei&tes* operat­ ing loss

83,640.00

Miscellaneous current-liability accounts, current-esset accounts, and expense and revenue accounts, net debits Total

122.750.94 fe.049.200.00

f.fter May, 1871, the company issued an additional A21,300 par value of its stock end #8,000 par value of its first-^mortgage 7 per cent bonds to pay debts of the Associ­ ates.^*

To secure funds to complete the construction work

started by the Associates, the Atchison, Topeka and Santa Fe Hail Road Company issued 56,855,000 per value of its capital stock to various subscribers at par for cash.

It recorded

that 59,294,000 par value of its funded debt and $4S$3,000 per value of county and township bonds were given aa bonuses to subscribers of the stock.2

In accordance with a contract

dated in September, 1870, Kidder, Peabody and Company of Boston, Massachusetts, became the financial agents of the railroad company.**

\ 127 I. C. G. 361. ?

Idem. Idem.

Under the agreement the railroad

108

company issued #1,350,000 par value of ita securities to tiiis firm for #880,000 cash, and recorded th.© trans­ action as follows:*’ Securities Issued

Par value

Capital stock

#200,000

First-mortgage

7 per cent Land-grant 7 per cent Land-grant 7 per cent

bonds mortgage bonds mortgage bonds

Discount

Bonus #200,000

600,000

#120,000

500,000

100,000

50,000

Commission

#50,000

The Atchison, Topeka ©nd Santa Fe Rail Road Company financed the sidiary companies

construction of linesofvarious

In the development ofitssystem*

sub­

Its

policy in most eases was to accept the bonds of these companies in liquidation of construction advances end the capital stock in consideration for guaranteeing payment of the principal of and interest on their b o n d s A part of th© bonds so received by it from subsidiary companies were offei'ed for sale to its stockholders under various circulars*

In on© of th© circulars, dated February 14,

1887, it made the following offer to Its stockholders: for each #2,000 received in cash, there were offered #1,000 per value of its own collateral-trust 5 per cent bond®! $1,000 par value of The Chicago, Kansas & Yvestern Railroad Company firet-mortgege 5 per cent bonds; and 1 2

127 1. 0. 0. >61. Idem*

109 §500 par value of Th© Chicago, Kansas & western Railroad

Company*s Income bonds.

Under this circular disposition

vs/as mad© of $6 ,500,000 par value, $6 ,500,000 par value, and #3 ,250,000 par value, respectively, of the above mentioned classes of securities by the Atchison, Topeka and Santa F© Rail Road Company for $13,000,000 cash*

The

discount of 13 ,250,000 was assigned entirely to the income bonds.* A reorganization of the company took place in 1899 due to the foot that interest charges of the company

and its controlled companies had increased beyond earning capacity*

In the reorganisation the company reacquired

#47 ,289,700 par value of its own old bonds and acquired #103 ,060,220 par value of its controlled companies* bonds* In exchange the company issued #202 ,707 ,699*75 par value of its own new bonds.

Of this amount 1123,575,776.55

represented general-mortgag© 4 per cent bonds and th© remainder, $79,131,923*20, income-mortgage 5 per cent bonds. The net increase in its own outstanding funded debt, taken alone, was #155 ,417 ,999*75 par value; while the net in­ crease in its own outstanding funded debt and that of its controlled companies , taken together, was § 52 ,357,779 *75 *^ A few years after the financial reorganization of 1889 , the company mad© further financial adjustments, authorizing the issuance of 1100,000,000 par value of second«»2nortgage bonds, dated July 1, 1892 , due July 1 , 1989* * 2

127 I. 0 , 0 . 361. Ibid.. pp. 362-364.

110 Of the authorized issue, $80,000,000 par' value, designated B& 61®as A bonds, bearing interest at the rate of 2j, 3,

and 3i per cent for the first, second, and third years, respectively, and 4 per cent thereafter, were to be ex­ changed, par for par, for the income-mortgage 5 per cent bonds then outstanding. #78,544*900

The company actually issued

value of th© new second-mortgage bonds. 3-

Th© income accounts for the period July 1, 1869, to December 31* 1895* shows an aggregate net income of #36,775*039*20, distributed as follows:

income applied to

sinking and other reserve funds #2,778,625*18; dividend appropriations of income |28,666,6l3*25| the remainder #5*329*800,77, transferred to profit and loss.

Th© profit

end loss account had e debit belence of #1,899*022,26 as of December 31* 1895*2 The company recorded dividends aggregating 146,743,863*25 during th© period from 18?9 to 1888, of which 128,666,613.25 was charged to income end #18,077,** 250 to profit and loss account.

Of the total recorded

dividends, #28,666,613*25 was payable with cash end #18,077*250 was payable with capital stock at per.^

Of

the letter amount, #2,356,350 was recorded as e 50 par cent ©took dlvident as of October 7, 1881, to subscribers hold­ ing #4,712,700 par value of stock.

This item appears to

represent discount on stock rather then a dividend.4 i 127 1 . 0 . ? p i d ., p. ? S H * . p* M I .. P.

4

0 . 364 . 369 .

373. 365.

Ill The Wichita & Western Hallway Company was in­ corporated under th© general laws of Kansas through articles of consolidation dated July 18f 1889* and filed July 24# 1889*^

It was controlled on December 30f 1898,

the date of sale, by th© Santa F© through ownership of a majority of its capital stock#2

The report of the Santa

Fe on the corporate history of The Wichita & v/eotern Railway Company states that the property of the latter was opei’ated by its own organization from January 1, 1889, until the receivership, February 1, 1895# and from th© letter date until date of sale by © receiver*

However, certain records

indicate that during the period from July 1, 1890, to the date of receivership the property was operated by the Atchison, Topeka and Santa F© Rail Road Company, as agent, under agreements dated July 1, 1890 #3

company owned

on th© date of sale 79*79 miles of line extending from Wichita to Pratt, Kansas; 44*93 miles of this road had been acquired from The Wichita and Western Railroad Company and 34*86 miles from Th© Kingman, Pratt & Western Railroad Company*^

The road originally acquired from th© latter

company consisted of 79*71 miles extending from Kingman to the west line of Kiowa county, Kansas; on December 10, 1895# however, that part of th© road west of Pratt, Kansas, 44*85 miles, was abandoned.^ *

127 I. Ibid.. SSI* h HH*, 5 ibid#, %

C. C. 207. p. 378. p* 379* p* 213*

112 The articles of consolidation provided for the issuance of capital stock of #1,035*000 par value, of which #655*000 was issued to holders of the capital stock of The Wichita and Western Railroad Company and The King­ man, Fratt & Western Railroad Company, and #380,000 was issued to th© treasury, representing a like amount of capital stock of The Kingman, Pratt & Western Railroad Company, which had been acquired from th© latter company in th© consolidation*^ The income accounts for the period January 1, 1889, to December 3Q* 1898, show a total deficit of #1,225,751*48 which was transferred to profit and loss; th© latter account showed a debit balance on date of sale amounting to #1,362,303*15*2

The company had not declared

any dividends on its capital stock to date of

sale

*3

Th© Wichita and Western Railroad Company was incorporated Hay 17, 1883, in the state of Kansas*^ It was jointly controlled on July 24* 1889, the date of consolidation, by the Atchison, Topeka and Santa Fe Rail Hoed Company and th© St* Louis and San Francisco Railway Company through ownership of its capital stock.^ The property of the company was operated by its own organization from th© date of Initial operation to the * ,

127 X. 0. C. 379. Ibid.. P. 381.

3 1 O T . , p. 382, ^ 7513 .. p. 207 . 5 2gJ!•» P- 382.

113 date of consolidation and consisted of 44*93 miles of line, wholly within the state of Kansas and extending from Wichita to Kingman*^* The road was constructed during 1883 and 1884 by the forces of th© /tohiaon, Topeka end Santa F© Hall Hoed Company#2 this company receiving 1430,000 par value capital stock and #730,000 of funded debt for its services *3 Dividends were declared in 1886 end 1887 in the amounts of #43*000 ®nd #31,500, respectively, both sums being charged to income.**’ The Kingman* Pratt & Western Railroad Company was a Kansas incorporation of September 11, 1885*^

It

was controlled by The Wichita and Western Railroad Oompany through ownership of a majority of Its capital stock on July 24* 1889* the date of consolidation.& The property of the company was operated by its own organization from the date it initiated service until th© date of consolidation*?

The railroad operated

on this latter date 79*71 miles of line, was ©11 owned*** It consisted of a line of road extending from Kingman to the west line of Kiowa county, Kansas, and hed been acquired by construction during 1886 and 1887.9 1 2 3 4 5 £ 6 7 8 9

127 I* Ibid .. Ibid.. idem. ib'ld.. pit.. Idem* Ibid.« iSexa.

e* C* 382* P* 383. P* 384. P* 207* P* 385. PP * 213* 385

1X4 Capital stock of $585#000 par value and funded debt amounting to #956,000 was outstanding on the date of 1 consolidation* During 188? th© company acquired, in ex­ change for like par value amounts of its capital stock, #85,000 par value of Kiowa county, Kansas, bonds and $120,000 par value of Pratt county, Kansas, bonds*

2

Th© remain­

der of th© stock, #380,000, was issued to Th© Wichita and Western Railroad Company in consideration of its guaranty of the principal and interest on the bonds of the company*

3

Ho dividends were declared by th© company on its capital stook^ and, on date of consolidation, the profit and loss account had © debit balance of #114,762*36* The iDrnsas City* Topeka and Western Railroad Com­ pany was formed through articles of consolidation dated July 13, and formally filed with the state of Kansas September 29, 1875*^

The company was controlled on Feb­

ruary 15, 1899, the date of ©ale, by th© Santa P© through 7 ownership of it© capital stock* Th© Kansas City, Topeka and Western Railroad Company controlled The Southern Kan­ sas Railway Company through ownership of a majority of its capital stock end also jointly controlled, with other companies, The Kansas City Belt Railway Company* i

127 I

f

Ibid.

\ sur. I |Tstar. 7

8

HH-

C* p. p. p.

C* 385* 387. 386* 207.

P* 362*

p. 207. p. 399.

&

115 The property of this company was operated under lease successively by the Atchison, Topeka and Santa Fe Hail Hoad Company, the receivers thereof, end the Santa Fe from the date of acquisition to the date of sale*

The

line owned on date of sale ©mounted to 66*06 miles and extended from Kansas City, Missouri, to Topeka, Kansas. This road was acquired by consolidation, purchase, and construction as follows :**• Recorded mileage Consolidation of September 29, 1875 From The Lawrence and Topeka Rail­ way Company, Lawrence to Topeka, Kansas From the Kansas Midland Hail Road Company, Missouri-Kansas state line to Corliss, Kansas Furohas© from Frank Morison: that portion of the road formerly owned by th© St* Louis, Lawrence and Western Railroad Company, between Lawrence and Corliss, Kansas

26.36 21*90

48*26

16*52

Construction, union depot at Kansas City, Missouri, to th© MissouriKansas state line Total

1.28 66.06

For the properties of Th© Lawrence and Topeka Hallway Company end th© Kansas Midland Kail Road Company, th© Kansas City, Topeka and Western Railroad Company paid #399,953.64 cash and issued #160,000 per value of its capital stock in exchange for an ©quel par value of the 1

127 I. C. C. 399.

116 Kansas Midland Rail Road Company.1

The accounts of the

purchasing company do not# separately record what part of* the cash payment was applicable to each of the properties acquired in the consolidation*

In the acquisition of that

part of the road between Corliss and Lawrence, Kansas, formerly owned by the St* Louis, Lawrence and Western Railroad Company, the company gave its securities aggregat­ ing |595»000 par value and $25,000 o&sh,^ Dividends aggregating #1,170,685 were declared during the period 1879 to 1886, and on date of sale the profit and loss account had a credit balance of $384,-* 519.25.3 The Lawrence and Topeka Railway Company was incorporated December 2, 1868, in the state of Kansas and consolidated with the Kansas Midland Rail Road Com­ pany on September 29, 1875, to form the Kansas City, Topeka and Western Railroad Company,^

The company owned

and had operated from the date of its organization to the date of consolidation 26,36 miles of railroad extending from Lawrence to Topeka, Kansas,^ The Kansas Midland Hail Hoad Company was incor­ porated May 29, 1873, in the state of Kansas*^

The mileage

of this company had not yet been placed in operation when 1 127 I. c. 0 . 399. f Idem* , s . p. 401.

I

Ibid., p, 404

117 consolidation was effected, but the company owned 21*90 miles of railroad extending from the Missouri-fensas state line to Corliss, Kansas, which it had acquired by eon-* struct! on* ^ The 8t» Louis*. Lawrence and Western Railroad Company was incorporated in the state of Kansas on Jan-* uary 15* 1873* a® The Bt* Louis * Lawrence and Denver 2 Ha H r oad Company* The name was changed on February 26, 1874*

The company operated its property from Fan**

uary 15* 1873* the date it was acquired, to February 23, 1877, the date of foreclosure sale*

The road ex­

tended 61*34 miles from Lawrence, Kansas, Tie I>© Boto Function {now Corliss) and Olathe, Kansas, to Pleasant Hill, Missouri; of this total 49*47 miles lay in Kan­ sas*

The entire mileage had been acquired from The St,

Louis, Lawrence & .Denver Railroad Company In the con­ solidation of Fanu ry 15, 1873, by which this company was formed***

The property, rights, and franchises of the

company were sold atforeclosure

sale onFebruary23, 1877*

and conveyed by special master*s deed dated

March6, 1877*

to Frank Morison, who by deeds dated October 18, 1877, conveyed the portion extending from Lawrence to Corliss, Kansas, 16.52 miles, to th© Kansas City, ^opeka end Western Railroad Company and th© remainder extending from Corliss, Kansas to Pleasant Hill, Missouri, 44*82 miles, to the *

127 I. C. 0. 404.

:

IMS.-» p» 207.

3

Ibid*, p* 404#

na Pleasant Hill end Be Soto Railroad Company, a predecessor of th© Kansas City, Clinton and Springfield Railway Company 1 Th© Lawrence and Carbondale Xieilway Company was incorporated in Kansas July 31, 1871.

2

The company did

not construct or operate any railroad*^

The company

consolidated with Th© St* Louis, Lawrence & Denver Rail­ road Company on January 15, 1873, to form the St* Louis, Lawrence and Western Railroad Company*^ Th© St* Louis. Lawrence & Denver Railroad Company was incorporated in th© state of Kansas, November 14, 1870, under articles of consolidation dated November 10, 1870, filed November 14, 1870*^

The property of the company

was operated by its own organization from th© date of acquisition of its original railroad to the date of con­ solidation*

The owned property consisted ox’ a line ex­

tending from Lawrence, Kansas, via I)© 3oto Junction (now Corliss) and Olathe, Kansas to Pleasant Hill, Kissouri, 61*34 miles, 49*37 miles being in Kansas*

This property

was acquired in the consoli&a tioxi of th© Pleasant Hill and Lawrence Branch of th© Pacific Railroad Company (incorporated about 1869 in the state of Xissouri, under th© Oeneral

ct

of Kerch 21, 1868) and the Saint Louis, Lawrence and Denver Railroad Company*^

At the time it was acquired,

16*52 miles ere known to have been completed and previously

119 in operation; it is not clear as to what pert of the remainder, 44*82 miles, was completed after its acquisition by the St* Louis, Lawrence & Denver Railroad Company.3* The Saint Louis, Lawrence and Denver Railroad Company was formed by the consolidation of The St. Louis, Lawrence and Denver Rail Road Company and Th© Lawrence and Pleasant Hill Railway Company (Missouri Incorporation) on May 24, 1870*^

This company

date of consolidation, 16*52

ownedon

November 14.,1B70,the

mile©ofcompleted road, ex­

tending from Lawrence to Corliss, Kansas, together with cer­ tain other property rights which it acquired from The Lt* Louis, Lawrence and Denver Rail Road Company in the con­ solidation. ^ The St. Louis. Lawrence and Denver Rail Road Company was incorporated in Kansas July 29, 1865.^

Any

portion of this company’s road that had been placed in operation was operated by the company itself during its period of existence.

Th© road owned and known to have

been completed on date of consolidation, May 24 , 1870, comprised 16.52 miles of line extending from Lawrence to Corliss, Kansas.'*

In addition, the company owned 44*82

miles (22*95 miles in Kansas) of road which the records indicate we© under construction, although some undetermined part of it may have been completed at that time.6 \ %

127. I. C. C. 406. Ibid.. p. 207.

{► Ibid** P* 207 ? ibid.. p. 407 6 IS51.

120 The Leavenworth. Northern end Southern Railway Company was incorporated October 24, 1885, in the state of Kansas.3- The company was controlled on February 15, 1899$ the date of sale by the Santa F© through ownership of its capital stock*2 Th© property of this company was operated in turn, under leas© by th© Atchison, Topeka and Santa Fe Rail Hoad Company, th© receivers thereof, and the Santa Fe frcm November 1, 1887, the date it was placed in operation,

to the date of sale.

The railroad owned on date of sal©

45*37 miles of line extended from Hawthorne to Wilder, Kansas* 3

This road was constructed by the Atchison, Topeka

end Santa fe Rail Road Company for this company during the period from December, 1886, to November 1, 1887*^ Capital stock of #140,000 par value wes issued to th© city, and county of Leavenworth, Kansas, in ex­ change for an equal par value of their bonds under the condition that th© stock would b© returned to the company without consideration if th© railroad was completed through Leavenworth county, Kansas, by August 1, 1877*

This con­

dition was met and th© stock of #140,000 par value wes returned to the company*

The county end city bonds of

#140,000 par value, together with th© #140,000 par value of stock which had been surrendered, were subsequently *

127 I. 0. 0. 207.

z, I M A * , p* m s .

}

4

ifff.. p. 214. S S * » P* ws*

121 given to the Atchison, Topeka and Santa Fe Rail Hoad Company in part payment for construction of th© road,3The authorized capital stock was #10,000,000 of which #641,600 wes outstanding on date of sale, being owned by th© Santa F© and pledged under its general mortgage.2 The funded debt issued by the company consisted of firstmortgage 6 per cent bonds of #646,000 per value and secondmortgage 6 per cent bonds of #508,000.

These bonds were

Issued in part consideration for construction of road.^ Both bond issues were acquired by th© Santa Fe in the re­ organization of th© Atchison, Topeka and Santa Fe Rail Road Company and were pledged by the former under its general mortgage of December 12, 1895* until April 8, 1901, when they were released as collateral end burned.^ The Southern Kansas Railway Company was incor­ porated under th© general laws of Kansas through articles of consolidation, dated April 16, 1885, and filed on the same date.**

The company was controlled on February 15,

1899, the date of ©ale, by the Kansas 01 ty, Topeka and Western Railroad Company through ownership of a majority of its outstanding capital stock.

Th© Kansas City, Topeka

and Western Railroad was, in turn, controlled by the Santa A Fe through ownership of the entire capital stock* Th© J 127 I. C. C. 408. ? IMd.„ p. 409. 3 TOE. 4 Idem. I

M > »

p

* 207.

P* 410.

122 property was operated from the date of its formation to the date of sale, as indicated below:^ Operated by:

From

Own organissation

April

Under leas© by: /tchison, Topeka and Santa F© Rail Road Company Jan, Receiver of the Atchison, Topeka and Santa Fe Rail Road Company Deo* Santa F©

Jan,

'To 16, 1885 Dec* 31,

1887

1, 1888 Dec. 23,

1893

24, 1893 Deo. 31, 1895 1, 1896 Date of Sale.

Th© railroad owned on the date of sale wes located in Kansas and Oklahoma and aggregated 829-40 miles of line* Of this total 561.78 miles lay in the state of Kansas*

It

consisted of two disconnected main lines and seven branch lines*

One main line extended from Holliday Junction,

Kansas, via Cherryvale, Kansas, to th© Gklahoma-Texas state line near Goodwin, Oklahoma, with numerous branch line© in Kansas.

These extended from North Ottawa to

Lawrence, North Ottawa to Emporia, Burlington Junction to Burlington, Chanute to Pittsburg, Cherryvale to Coffeyville, Wellington to Hunnewell, and Attica to Medicine Lodge* Th© other main line extended from /rkeneas City, Kansas, to Purcell, Oklahoma.

Th© mileage acquired from each

predecessor and that constructed by this company is shown in the following statement.2 1 2

127 I. o. 0. 410. Ibid.. p. 411.

123 mileage Acquired by consolidation of April 16, 1885* From Southern Kansas Hallway Company From Th© Kansas City and Emporia Railroad Company From The Kansas Southern Railway Company From The Harper & Western Railroad Company

396*05 54.19 40.28 11*46

Acquired by completion of construction begun by The Harper & Western Railroad Company Acquired by construction

501*98

43 *42 284*00

Total mileage owned on date of sale

829*40

Dividends aggregating $556,578 were declared by the company during the years 1885 nnd 1886, which v5,000,000 par value

of first-mortgege 10 per cent bonds*

These bonds were

offered to the public at 90 per cont of par value, th© * 2 3

127 I. 0. 208. Ibid*, d . 436*

15 eZ.

ItSs*

141

purchasers thereof being entitled to a like amount of its capital stock* 1 The minute book of the company indicates that on February 14* 1874, it owned #1,272,000 par value of bonds issued by various counties and the city of Independence, Kansas, as follows:

2

Douglas County, Kansas F ranklin Count y , Kan se a Anderson County, Kansas .Montgomery County, Kansas Allen County, Kansas Johnson County, Kansas City of Independence, Kansas Total

$

300,000 250,000 200,000 200,000 150,000 100,000 75*000

#1,275,000

The considerations, if any, given for these bonds were not ascertained*

However, the minute book

of the company indicated that it was to issue like amounts of its capital stock to th© city end counties*

The minute

book also indicates that ©t least part of the counties were to return to th© company the stock so issued, when th© railroad was completed to © certain point*

Th©

principal of and interest on these county and municipal bonds were guaranteed by the company and th© bonds were offered to its stockholders at 65 per cent of par value* The Sumner County Railroad Company was incor­ porated April 5, 1880, in the state of Kansas.**

Th© com­

pany was controlled on December 15, 1880, the dote of \

127 I. C. G. 437.

-

Idem* Idem* ISIS'.. p. 208.

*

4

3

142 consolidation with the Southern Kansas and Western Rail Hoad Company and the Kansas Gity, Lawrence and Southern Railroad Company, by Charles Kerriam, trustee, through title to e majority of its oapit&l stock.1

The latter com­

pany operated the property from the date it was placed la

operation, June 16, 1880, to th© date of consolidation* The railroad owned on th© date of consolidation consisted of 18.32 miles of line extending from Wellington to

Hunaewell, Kansas, and had been acquired by construction during 1880*^

To provide funds for th© construction,

a plan dated May 3, 1880, was submitted to th© stockholders of the Kansas City, Lawrence and Southern Railroad Company

and the Southern Kansas and Western Railroad Company whereby the holder of 125 shares of stock of either or both of these companies was entitled to subscribe for the

securities of this company on the following basis

Capital stock at par First-mortgage 7 per cent bonds at 20 per cent of par Total

Par value

Cost

#

700

#?00

1.Q00

200

#1,700

#900

The company issued, and had outstanding on the date of consolidation, #214,200 par value of stock and #266 ,000 par value of first-mortgage 7 per cent bonds.** A statement in an annuel report of the Kansas City, 1

127 I. C. 0. 208, 439.

~

Idem.

?

4

Idem.

143 Lawrence and Southern Kansas Railroad Company for 1880 indi­ cates th© total cost of the property of the Sumner County Railroad Company to the date of consolidation was #236,768*-

Gn June 18, 1881, the Kansas City and Olathe Rail­ road Company was incorporated in the state of Kansas.2

The

Kansas City, Lawrence and Southern Kansas Railroad Company controlled the company on July 16, 1883, the date it was consolidated with the above road and th© Ottawa and Burling­ ton Railroad Company to form the Southern Kansas Railway Company, by virtue of the ownership of its capital stock.

3

Th© Kansas City, Lawrence and Southern Kansas Railroad Com­ pany operated under leas© the property from th© date it was placed in operation, June 1, 1882, to the date of consoli­ dation.

The company owned on the date of consolidation 14.10

miles of railroad extending from Olathe to Holliday Junction, Kansas, all of which had been acquired by construction. 4 The Ottawa & Burlington Railroad Company was Incorporated February 19, 1881, in the state of Kansas. On July 16, 1883, the date of. consolidation, the railroad was controlled by the Kansas City, Lawrence and Southern Kansas Railroad Company through ownership of its capital stock.^ * f

127 I. Ibid., SSI* * 4 Idem. § Ibid•* 6 MM* #

C. 0. 440. p. 20S. p* ^40 . p. 208. P* 442.

144 Th© latter company also operated th® property under lease from April 1, 1881, to the date of consolidation*

The

property of this company, consisting of 41*40 miles of railroad extended from Burlington Junction to Burlington, Kansas, and had been acquired from one Alden Spear© and his associates, who had acquired it previously at a foreclosure sal© on January 4, 1861, from the Kansas City, Burlington and Santa Fe Railway Company*^ The Kansas City. Burlington and Santa Fe Rail­ way Company was incorporated February 4, 1870, in the state of Kansas* 2

The property of the company was operat­

ed by its own organization from the date of completion, April 1, 1878, until the receivership, about November 10, 1880*

From th© latter date until th© date of sale, Jan­

uary 4, 1881, its property was operated by a receiver* This was th© 41*40 miles of line just mentioned, extend­ ing from Burlington Junction to Burlington, Kansas; it had been acquired by construction during 1877 ©nd 1878.3 July 1, 1884, Th© Harper & Western Railroad Com­ pany was incorporated in th© state of Kansas and on April 16, 1883, th© date of consolidation, it was controlled by the Atchison, Topeka and Santa Fe Rail Road Company through subscription to its capital stock.^

The completed railroad

of this company was operated under lease by th© Southern *

127 I. 0. C. 442.

? ?

Ibid.. p. 208. B i d .,p. 443.

4

B i d ..pp. 208, 443.

145 Kansas Hallway* Company from Hovember 10, 1884, the det© it was opened for operation, to th© dal© of consolidation*^" Th© company owned on th© date of consolidation 11*46 miles of completed railroad extending from Harper to /ttica, Kansas*

it also had under construction lines extending

from Attica, Kansas, to th© Kansas-Gklahoma state line near Kiowa, Kansas, a distance of 22*41 miles, and from Attica to Medicine lodge, Kansas, a distance of 21.01 miles*

Th© entire 11*46 miles of railroad and the par­

tially constructed roads on the date of consolidation had been acquired by construction* The Burlingame and Northwestern Hailway Company was incorporated July 29, 1898, in the state of Kansas.^ It was controlled on April 1, 1899, the date of sale, by th© Santa [email protected] through ownership of a majority of the capital stock*

Th© property of this company, 34*23 miles of line

extending from Burlingame to

lma, Kansas, was operated

by its own organization from August 1, 1898, to the date of sale.

Th© entire 34.23 miles had been acquired through

a reorganization following foreclosure sal© of th© Man­ hattan, Alma and Burlingame Hallway Company under deed dated July 30, 1898,^ 127 I. C. C. U3. ia*E. r U S . , p* 208* Ihid* * p. 444*

\

i

146 The Manhattan, A i m and Burlingame Hallway Company

was incorporated September 3, 1872, in the state of Kansas.^ The Santa Fe controlled the road on April 18, 1898, the date of sale, through ownership of its capital stocM* The company owned 56*62 miles of roed extending from Burlingame to Manhattan, Kansas, on date of sale, this mileage having been acquired by construction during 1880.^ The property of this company was operated by its own organisation from August 1, 1880, the date it was placed in operation, until the receivership, Feb­ ruary 1, 1895*

From th© latter dote to July 31, 1898,

the property was operated by a receiver.3

The property

of this company was sold under foreclosure proceedings to Adiel Sherwood on April 18, 1898, who deeded that portion of the property extending from Burlingame to Alma, Kan­ sas, 34*23 miles, to The Burlingame and Northwestern Railway Company on July 30, 1898*

The remainder of the

road, extending from Alma to Manhattan# Kansas, 22*39 miles, was abandoned by Sherwood on August 1, 1898*^

The

Santa Fe recorded a credit of #72,856*81 to its road and equipment investment account, this credit being describ­ ed as proceeds from the sal© of salvage recovered from th© abandoned line* 5 I t

127 I. C. 0. 208. ifrifl** P* 446*

Ibid

Th© corapany issued capital stock In exchange for the following recorded consid©retions;1 Bonds of Wabaunsee County, par value Bonds of Burlingame Township, parvalue Issued to J# T, Dillon, as trustee for? The Atchison, Topeka and Santa F© Hail Road Company The Union Pacific HallwayCompany (the last two items were charged to the road and equipment investment account.) Total par value

f

138,700 24,000 418,650 41o,650

#1,000,000

Outstanding on date of sale, canceled on sal© of the property

#1,000,000

The company issued #678,000 par value of firstmortgage 6 per cent bonds In part consideration for con­ struction.

These bonds were all outstanding and were

held by the Santa [email protected] on date of sale.^ The investment of the Manhattan, Alma and Burlingame Railway Company in road and equipment, includ­ ing land, on date of sale was stated in its books at #1,696,862.99*

Th© following is a general analysis of

th© investments^ For construction and additions and betterments: Recorded money outlay Funded debt issued at par value 1 \

3

127 I. G. 0. 446. Idem. Ibid.. p. 447.

#159,909*86 678.000,00

$

837»909.

146 Other items, charges;

Capital stock issued to J# T# Billon as trustee for the Atchison, Topeka and Santa Fe Hail Hoad Company and ‘The Union Pacific Hallway Company, for which no con­ sideration was identified in the records loss on sale of county and township bonds

#837,300*00 31*633*13

Total recorded on date of sale

t

838*953*13

#1,696,862*99

In addition, the .Atchison, Topeka and Santa j?e Hall Hoad Company made expenditures aggregating #368*43 for additions and betterment© to the property of this company, which it charged to investments in advances *-JThe company made no adjustment in its books for th© line of 22*39 miles abandoned between Alma end Manhattan, Kansas,^ On the date of sale there were outstanding #30,979*2? of short-term notes issued by th© receiver* The notes were all held by the Sente Fa*

They were not

recorded ©s assumed by the successor company, The Burlin­ game and Northwestern Bailway Company, but v^ere subsequently canceled by the Santa F© in the acquisition of the property 3 of the letter company*

The only amount recorded in the profit and loss account on July 31» 1S98, was #292,945*33, representing * ?

127 I. c. C. 448. Idem* ISS*» P* 447.

149 the income debit balance transferred from income*

1

No

dividends were ever declared by th© company on its capital stock *^ The Kansas &, Southeastern Railroad Company was incorporated August 161 1897, in the state of Kansas *3 It was controlled on December 20, 1899, the date of sale, by the Sant© Fe through ownership of its capital stock Th© property of this company, about 9*07 miles of rail­ road extending from the Kansas-Oklahoma state line near Hunaewell, Kansas, to Braman, Oklahoma, was constructed during 1898; it was operated by the receivers of The St* Louis, Kansas and Southwestern Railroad Company until February 19, 1899, and by the Santa Fe from February 20, 1899, to the date of sale.^ The records of the Santa Fe indicate that Th© Kansas & Southeastern Railroad Company issued #300,000 par value of capital stock to th© receiver of The St* Louis, Kansas and Southwestern Railroad Company for construction of the road*

These records also indicate

that th® funds for construction were obtained by the above-mentioned receiver from th© sale of #120,000 par value of receiver1s certificates Issued to him*^ \ i 7

* ?

127 X. C. C. 447. Idem* P* 20B*

i H d *, p. 448* Idem* S 3 2 * » P* W # •

150 The Hutchinson and Southern Hallway Company was incorporated December 21, 1897, in the state of Kansas*1 It was controlled on December 20, 1899, the date of sale, by th© Santa F® through ownership of its capital stock* The property of the company was opei^ated by its own organ­ ization from date of acquisition to date of sale*

The

railroad owned end operated on date of ©ale amounted to 141* 36 mile s, extending from Hut ehlnson, Kanses, to Pone© City, Oklahoma.2 Of the 141*36 mile© of road, the company had acquired 88*14 miles from Th© Hutchinson & Southern .Rail­ road Company, 38.74 miles from the Gulf Railroad Company, and 14*48 miles by construction*

The construction work

was performed by w. A* Bradford, Jr., contractor, who does not appear to have been affiliated with the company* 3 The Hutchinson & Southern Railroad Company was incorporated under th© general laws of the state of Kansas through articles of consolidation, dated October 5, 1889, filed October ?, 1889*^

The property of this company was

operated by its own organization from the date it was placed in operation until th© receivership, August 9, 1893*

From

the latter date until February 28, 1898, the property was operated by receivers.

5

The railroad owned on date of sale,

©mounting to 88*14 miles, extending from Hutchinson, Kansas, i ?

127 X. G. 0. 208. Ibid., p. 449.

?

E ss.

£

US*. 2°9. m i . * p* 452 .

5

151

to Kakita, Oklahoma, had been acquired by construction.1 Th© company issued #7,320,000 per value capital stock and #1 ,025,000 par value 5 per cent mortgage bonds. These bonds were pledged with the Union Pacific Railroad Company as security for a note of #768,500 par value, and in 1698 these bonds were issued to the receiver of the Union Pacific Railroad Company at a recorded value of #350,000 in part payment of the above-mentioned note. Receivers* certificates of #91,000 par value were Issued between June 10, 1895, and July 1, 1896.

The above-des-

cribed seourities were canceled in the sale of the property. On March 7, 1889, The Hutchinson. Oklahoma and Gulf Railway Company was incorporated in the state of Kan­ sas. ^

On October 7, 1889, th© company was consolidated

with Th© McPherson, Texas and Gulf Railroad Company to form The Hutchinson & Southern Railroad Company.^ *3s

Th©

company owned no common carrier property on the date of consolidation. Th© McPherson. Texas and Gulf Railroad Company, incorporated in the state of Kansas May 31, 1887,** con­ solidated with Th© Hutchinson, Oklahoma and Gulf Railway Company on October 7, 1889, owned no oomon carrier property on the date of consolidation. 6 *

127 1. Ibid.. 7 Ibid.. 7 Idem. | HS. 6 Ibid., i

c. 0. 452. p. 453* p. 209. p. 4*54.

2

152 Th# Kansas. Oklahoma Central and South-Western Railway Company was incorporated June 14, 1893, in the then Territory of Oklahoma # and on August 17, 1894, in the State of Kansas.^-

The property of th© company was

sold at foreclosure sal© on June 29, 1900, and conveyed to the Santa F© on July 2, 1900.

This company was con­

trolled by local interests until February 18, 1899, after which date it was controlled by the Santa Fe through owner­ ship of a majority of its outstanding capital stock.^ The railroad owned on date of sale, 56.85 mile3 , extended from the Kanses-Gklahoma state line, near Caney, Kansas, to Qwasso, Oklahoma.

The railroad was constructed

In 1899, the first segment being turned over to the Santa Fe for operation on August 1, 1899, and the remaining mile­ age on November 1, 1899-

Some preliminary construction

work was performed by independent contractors prior to February, 1899, after which date the construction was com­ pleted through advances made by the Santa Fe.^ The Floi'enc©. 11 Dorado and Walnut Valiey Railroad Company was incorporated March 10, 1877, to the state of K a n s a s T h e company was controlled through ownership of it© capital stock by the Atchison, Topeka and Santa Fe Rail Road Company end by that company's successor, th© Atchison, Topeka and Sant© Fe Railway. i

12? X. C. C. 209.

? Ibid., p. 493# r Z B 4 Ibid.. p. 210.

The Atchison,

153 Topeka and Santa F© Hall Hoad Company and Its receivers operated th© road from August 1, 1877* the date the first section of road was placed in operation, to December 31* 1895* sad by its successor* the Santa Fe* from January 1 9 1896* to the date of ©ale.*** The railroad extended from Florence to Winfield, Kansas, 71.58 miles, end was constructed by or for the company during the years 1877 to 1886, inclusive*2

The first section between Florence

and El Dorado was constructed under contract dated June 28, 1877, by the Walnut Talley Construction Company, and was opened for operation on August 1, 1877.

The section

between El Dorado and Douglas was constructed under con** tract by the Atchison, Topeka and Santa F© Hail Hoad Com­ pany, and the section between Douglas and Winfield was constructed by the company itself,*^

These two latter

sections were opened for operation on August 1, 1881, and Bovember 1, 1886, respectively. Ho copy of th© contract with the Walnut Valley Construction Company for the construction of the line between Florence and El Dorado* Kansas, is available.^

The agree­

ment with the Atchison* Topeka end Sant© Fe Rail Road Com­ pany for the construction of the line from 11 Dorado to Douglas, Kansas provided that the Florence, 11 Dorado and Walnut Valley Railroad Coxopany issue its capital stook at i

127 I. C. C. 497.

I xE^;. P. 198 * lacs;

the rate of #15,000 par value per mile, its first-mortgage bonds at the rate of $10,000 par value per mile, additional oapital stock of #122,000 par value end pay #9,456*03 in cash and deliver all county and township bonds received in aid of construction.^

In settlezrient under th© con­

tracts these companies received th© following:^ v/alnut Valley Construction Company (Construction of line from Florence to FI Dorado, Kansas. Capital stock, par value #248,000*00 First-mortgage bonds, par value 310,000*00 Township bonds, par value (including #39,000 not record­ ed in the accounts) 80,000.00 Credit given la a current account less cash, etc., received on account of incomplete# work 8,877.56

Atchison, Topeka and Santa Fe Rail Road Company {Construction of line from El Dorado to Douglas, Kan.) #472,000.00 278,000.00 39 ,000.00

9,456.03

The Atchison, Topeka and Santa Fe Rail Rosd Com* pany advanced funds amounting to #315,733.45 for construction of th© line from Douglas to Winfield, Kansas, end for improvements of th© entire road.

Part of these advances

were retired by the Florence, El Dorado end Walnut Valley Railroad Company with its first-mortgage bonds and with th© cash proceeds from th© sale of city and township bonds.^

155 Th® Investment of the company in road and equip­ ment, including land, on September 30, 1S89, was stated in its hooks as #1,712,553*45**^

The construction records

state that the Walnut Valley Construction Company expended #251,382*16 cash In constructing the line from Florence to El Dorado, Kansas, and that the Atchison, Topeka ©nd Santa Fe Rail Road Company expended 1375,930*59 cash in constructing the line from El Dorado to Douglas, Kansas*^ The Florence, 11 Dorado and Walnut Valley Railroad Company acquired #134,000 par value of city and township bonds in exchange for an equal par value of its own stock* It delivered $80,000 par value of such bonds to the Walnut Valley Construction Company in part payment for construction and sold the remaining #54,000 par value for #45,180 cash, or at a loss of #8,820, which was charged to th© road ©nd equipment Investment account*^

The Florence, 11 Dorado

and Walnut Valley Railroad Company also received ®s donations $39,000 par value of bonds of townships in Butler county, Kansas, which it delivered to the Atchison, Topeka and Sant© Fe Rail Roed Company in pert payment for construction. It did not record the acquisition or disposal of these bonds In Its account©*^

i ,

127 I. C. 0. 500. Idem.

I Idem* urn*

*

156 The. Cli.jLpQ.fio* Kansas & Western Railroa d. Company was incorporated May 31, 1886,1 under the general lavs of th© state of Kfins&s) as 0 consolid tion of ten corporations# It was incorporated In the interest of the Atchison, Topeka and Sente F© Hail Hoad Company, and was always controlled through stock ownership by that company or its successor, th® Santa Fe#

2

The property was operated by or for It until September 30, 1889* and was operated under lease by the Atchison, Topeka end Santa F© Rail Hoed Corapeny end that companyfs successor, the Santa Fe, from October 1, 1889, to April 10, 1901, th© date of sale to the Santa Fe*

Th©

railroad owned on date of sale aggregating 88?#13 miles, all being located in Kansas, consisted of branch lines extending from Hutchinson to Kinsley, Chanute to Longton, Augusta to Mulvane, Independence to Havana, Osage City to QMenemo, Abilene to Sallna, Manchester to Barnard, Little Elver to Holyrood, Burlington to Grid ley, Colony to Yates Center, Benedict Junction to Madison Junction, Havana to Gedarvale, Mulvane to Englewood, Lamed to Jetmore, Great Bend to Scott City, Bazar to Gladstone, Gladstone to Strong City, and Neva to the Kansas-Nebraska state line.3 The 887*13 miles of road owned on date of sale was acquired as follows:^ I i

127 I* C* 0. 210,

*

Idem*

rbii*» p* soi*

157 Recorded mileage By construction, performed by or under supervision of the Atchison, Topeka ©nd Santa Fe Hall Hoad Company, 1886 to 1888 By purchase from The Southern Kansas and Panhandle Railroad Company, Jan* 1, 1890 Total acquired

907.1$ 28* 34 935.49

Less remeasurement©, reductions in straightening line, and abandonments Mileage owned on date of sale

-48.36 887.13

According to th© construction records, the Atchison, Topeka and Sants Fe Rail Road Company had performed certain construction work for th© predecessor oosipanies of The Chicago, Kansas & Western Railroad Company prior to May 31, 1886, th© date those companies consolidated to form The Chicago, Kansas & Western Railroad Company.

Th© construction

of the lines was completed after May 31, 1886, end Is repre­ sented in the 907*1$ miles of road shown above as acquired by construction*^ The financial arrangements Included th© issuance

of securities to th© Atchison, Topeka and Santa Fe Rail Road Company in payment for construction*

The construction work

was performed by the Atchison, Topeka and 3ante Fe Rail Road Company under contracts dated January 6, 1886, and June 1$, 1886, which provided that, in consideration therefor, The Chicago, Kansas & Western Railroad Company would issue #10,000 par value of stook, #14,000 par value of first1

127 I. c. 0. 501.

158

mortgage bonds, and #7,000 par value of income bonds for each mile of road constructed, and also transfer all county and municipal bonds received in eld of construction.* From th© date of its incorporation to September 30, 1889, the company Issued stock and funded debt and incurred non-negotleble debt to affiliated companies aggregating #27,770,802*44 P&f value, all of which wes actually outstand­ ing on date of sale.

The company issued |6,542,300 par

value of stock, #4,700,000 of which was given to the Atchison, Topeka ©nd Santa Fe Rail Road Company in part pay­ ment for construction work performed under contracts, #1*841,000 was issued to various cities, townships, and counties in exchange for equal amounts of their bonds, and #1,300 was issued without consideration to qualify directors. The city, township, and county bonds acquired In exchange for stock were turned over to the Atchison, Topeka and Santh Fe Rail Road Goripanf a® additional payments for construction*

The #6,542,300 par value of capital stock

issued wes actually outstanding on date of sale, being held by th© Santa F©«^

The company issued #19,926,000 par value

of funded debt to the Atchison, Topeka and Santa Fe Rail Road Company in part payment for construction work.^ According to the construction records, the outlay 5 for constructing this property was #13,848,385.06 in cssh. * ? 3

127 I. c. 0 . 502. Idem. Idem.

2

159 The general accounts of The Kansas Southern Hall­

way Company and the construction records shows money out­ lay aggregating #20 ,665.12 expended during 1883 and 1884 by th© Atchison, Topeka and Santa Fe Rail Hoad Company in behalf of th© Kansas Southern Railway Company, for certain right of way and an undetermined amount of surveying and grading between Independence and Elgin, Kansas.

After

September 30, 1889, when th© company discontinued its accounts, th© Atchison, Topeka and Sant© Fe Rail Road Company, less©©, recorded cash expenditures of #75 ,618.62 for improvements on th© leased property for th© period from October 1, IS89 , to December 31, 1895*

After th© latter date and until th©

property wes sold, such expenditures were not separably recorded by th© Santa Fe, lessee, in It© additions and betterments account©*^ The company acquired capital stock of #300,000 par value from Th© Southern Kansas and Panhandle Railroad Company, v/hioh it recorded at a nominal value of #1.

In

consideration of such stock, it financed the construction of th© road of The Southern Kansas and Panhandle Railroad Company*

This stock wes canceled, or held for cancellation,

when th© property of the issuing company was purchased on January 1, 1890*

The company also acquired $121,300 par

value of Clark county bonds from The southern Kansas and Panhandle Railroad Company In the purchase of the property of that company. 1

These bonds were sold for $90,975 cash,

127 I. 0. 0. 504.

160

which wo® collected by the Atchison, Topeka and y^nte Fe R©il Hoad Company*

The Chicago, Kansas & Testern Railroad

Company also acquired a& donations, but did not record in Its accounts, $54,000 par value of county and city bonds which were transferred to the Atchison, Topeka and Santa Fe Rail Road Company in part payment for construction.* The Southern Kansas and Panhandle Railroad Company was incorporated July 28, 1886, under the general lews of the state of Kansas,2

It was controlled, through ownership

of capital stock, by Th© Chicago, Kansas & 'Western Railroad Company. The property was operated under lease by The Chicago, Kansas & Western Railroad Company from 188? or 1888 to September 30, 1889, and under lease by the Atchison, Topeka and Santa fe Rail Road Company from October 1, 1889, to January 1, 1890, the date of sale of its property to The Chicago, Kansas So Western Railroad

Company.3

The company

owned on date of sal© 28.34 M ies of railroad extending from the east line of Clerk county, Kansas, to Englewood, Kansas, this mileage had been constructed by, or for, it in 188? end 1888.4 The Southern Kansas and Panhandle Railroad Company Issued #422,000 par value capital stock to The Chicago, Kan­ sas So Western Railroad Company as co nsi derat ion for financ­

ing the construction of the road, and $121,300 was issued 127 1. * Ibid.. ? IbH., 4 Ibid.. \

0. p. p. p.

C. 504. 210. 507. 508.

161 In exchange for a like amount of bonds of Clark county, Kansas*

According to the construction records of The

Chicago, Kansas & Western Railroad Company, $268,942.69 in cash wa® expended on the construction of the property of The Southern Kansas and Panhandle Railroad Company.* The Arkansas River and Western Railroad Company was incorporated August 4, 1885, in th© state of Kansas.2 It was authorized to construct a line of railroad extending from Hutchinson to Kinsley, Kansas, a distance of ebout 84

miles.3

The Chicago. Kansas A, Western Hallway Company was Incorporated in Kansas on November 21, 1885#^

It was

authorized to construct a line of railroad extending from Burlington to G-ridley, Concordia to the Kensas-Nebraska state line, ©nd Benedict Junction to Madison Junction, a total of about 90 miles, all in th© state of

Kansas*3

The Colony* Neosho Falls and Western Railroad was incorporated under th© general laws of Kansas, December 10, 1885,^ to construct a line of railroad extend­ ing from Colony to Yates Center, Kansas, a distance of about 25 miles.?

The Emporia & B1 Dorado Short Lin© Railroad Company & wes & Kansas incorporation of December 29# 188$. It was I

?

f

127 I. C. C. 508.

Ibid.

PP*

5 IbldT. f 6

Z 8

U S *

Ibid. I¥Id.

p*

p. p* p. p. p* p.

210* 504. 210. 504. 210. $05 * 210.

162

authorised to construct © line or reilroud extending from Kllinor to Bazar, Kansas, a distance of about 10 miles.1 Th® Independence & Souths- ©stern Railroad. Company was incorporated July 2$, 188 5, under the general laws of Kansas,

2

This company was to construct a line of railroad

extending from Independence to Cedarvsle, Kansas, a distance of about 55 miles*^ The Kansas, Oklahoma and Texas Railway Company, a Kansas incorporation of September 10, 1385,^ was empowered to construct a line of railroad extending from Chanute to Longton, Kansas, a distance of about 43 miles,5 The he Hoy & Western Hallway Company was ineax*porated in Kansas November 27, 1885*

fi

Th© company was

authorized to construct a line of railroad extending from Mulvane to th© east line of Clark county, Kansas, a distance of about 138 miles.* The Ottawa, Qsa&e City ©nd Council Grove Hail Hoad Company, a Kansas Incorporation of August 16, 1883, was authorized to construct © line of railroad extending from Osage.City to quenemo, Kansas, e distance of about 20 miles*9 i 127 I. ? Ibid... 3 iblS , ^ I H cl , 5 IE5 , 6 m j , 1 IHI , 8 IbM , 9 Ibid #

0. C. 505. p. 2X0. p. 505. p, 210, p, 506, p * 210 • p, 506. p * 210 « p. 506.

163 The Pawnee Talley and Denver Railroad Company Incorporated In Kansas September 28, 1885,1 was authorized to construct © line of railroad extending from Lamed to Jetmore, approximately 46 miles*2 The Walnut Talley & Colorado Railroad Company was incorporated August 26, 1885, under the general lew© of the state of Kansas.^

It was authorized to construct

a line of railroad extending from Great Bend to Selkirk, Kansas, a distance of about 156 mile s.^ There is no record that The Arkansas Elver and Western Railroad Company, The Chicago, Kansas 8c Western Hallway Company, the Colony, Neosho Falls and Western Railroad Company, the Emporia

?

G.

0. 366.

227 assumption of this company* s agreement with the oity of Pittsburg, Kansas."1

1

75 I. 0. 0. 365*

228 ta and Th© Wichita and Midland Talley Railroad Company la a Kansas corporation, having its principal office at Wichita, Kansas.1

The Wlohita ana Midland Valley was

incorporated July 29, 1910, under the general laws of Kansas as The. Wichita . McPherson Sc, Gulf Railroad Company for the purpose of constructing and operating a railroad and telegraph line from Arkansas City to McPherson, Kansas, about 100 miles.

Actually, 50.04 miles of line were con-

strueted between Arkansas City and Wichita, Kansas.

2

Th©

name of the corporation was changed by charter amendment February 28, 1911, to its present designation, The Wichita and Midland Talley Railroad Company* The property was operated by the Midland Valley Railroad Company under lease agreement from the date of its completion, October 1, 1911, to January 1, 1918.

From Jan­

uary 1, 1918, to torch 1, 1920, It was operated by the United States Railroad Administration ©a a part of th© operating unit of the Midland Valley Railroad Company.

On

March 1, 1920, the Midland Valley Railroad Company again assumed the operation of the property* The owned mileage of The Wichita and Midland Valley Railroad Company was acquired by it through construotion between July 1910, and October, 1911.

TUe con­

struction work was performed under contract by The Midland 1

1 U I. 0. 0. 439. » i d . , P. 389*

as

of June 30, 1919.

229 Construction Company, an affiliated company organized by the group controlling the Midland Valley Railroad Company.1 The Wichita and Midland Valley Railroad Company issued #900,000 par value of its capital stock and #1 ,025 ,000 par value of first-mortgage bonds, ©Iso the transfer

of $116,500 par value of county and city aid bonds to Th© Midland Construction Company in payment for the construction of its property.

2

The Wichita and Midland Valley Railroad

Company acquired this total of aid bonds as follows:

#86,500

in exchange for an equal par value of its capital stock and the remaining #30,000 as a donation.

Of the securities

received by The Midland Construction Company, it transferred #460,000 par value of common stock to the Midland Valley Railroad Company for no consideration other than the agree­ ment of the latter to leas© and operate The Wichita and 3 Midland Valley Railroad Company. Th© lease, dated March 14, 1911, continues until July 29, I960, the annual rental

being 25 per cent of the gross earnings from operating the leased line, with a minimum guarantee of a sum equal to the lessor’s taxes and bond Interest* to be disbursed in the following order:

The sum received was payment of lessor's

preferred stock5 and payment of any balance to the lessor. However, in the financial reorganization of February 1, 1913 » the rental provisions were modified to the extent that

* 5

141 X. 0 . 0 . 439* Idem. Ibid., pp. 439-44C*

230

Th© Vieiiite and Midland Volley's preferred stockholders agreed, in case th© Midland Valley Railroad earning® were insufficient to pay interest on its adjustment-mortgage income bonds, to waive their rights to dividends in favor X of the holders of such income bonds.

1 141 I. G, C. 436.

231 Missouri-Kansas-Texas Railroad Company The Missouri-Kansas-Texas had its genesis in the land grant policy of th© United

States, purposed to

develop the W e s t through the construction of railroads.

Beyond the desire on the part of th© Federal government to stimulate western development was a need during that period of a ralirasa into Indian Territory to facilitate the maintenance and. movement of troops west of th© Mississippi and in the Southwest*

Tedious marches

would bring troops to points needed, but speedy trans­ portation between posts, In response to emergency needs, was wholly lacking.

Recognition of this lack gave birth

to the idea of connecting the main army posts by rail, 1

By an Act of Mar c h 3, 1863,

while th© Civil War was at it®

height, Congress, to bring army posts into closer touch as well

as to promote a general policy of western development,

offered alternate sections of land to aid in the construction of a line along e route f r o m Emporia, Kansas, down th©

Neosho Valley, to a point where It would connect with the Leavenworth, Lawrence & Fort Gibson Railroad, then building from Fort Leavenworth to th© southern boundary of Kansas, in the direction of Galveston Bay; also to aid In th© con­ struction of a line of railroad extending from th© city of Atchison, via Topeka, to the western line of the state, in 1

United Gtctea Statutes at Large, vol. 12, p. 772*

the direction of Fort Union and Santa Fe, New Mexico*

232 This

Act constituted the initial step toward the construction of the Missouri—Kansas—Texas Railroad th&t nine years later carried its rails into what is now Muskogee, Okla­ homa, and the following year crossed th© Red River on its way to Galveston Bay, then its objective and now one of its southern termini* Fort Gibson, established as a military post in 1824 and Oklahoma's most historic spot, was the line's objective, so fcr a© th© Indian country was concerned. Th© idea was to connect Fort Leavenworth, then the big western supply depot, with Fort Gibson by the Leavenworth, Lawrence & Fort Gibson lln©, and also th© Emporia branch of the Fort Union line at Ghanute, Kansas, with the Inten­ tion of having the latter extend to Junction City, Kansas, adjoining the Fort Hiley military reservation#

By an Act

of the Kansas Legislature of February 9, I864,1 the Federal

grant of the year before was formally accepted and the rights were conferred upon the Atchison, Topeka and Santa Fe, in part.

On July 1, 1864,2 Congress passed an Act

making an additional grant of land to the State of Kansas

to aid in the construction of railroads end telegraph lines. Provision was made that a line be constructed from Emporia, via Council Grove, to a point near Fort Riley, on the Union Pacific Railway Company, Eastern Division, the line

1 Laws of Kansas, p* 149 (1864). 2

United States Statutes at,Large, vol. 13» P* 33V

233 to receive the alternate sections of land designated by odd numbers for a distance of ten miles on each side of such line, "Provided, That this grant shall be subject to all the provisions, restrictions, limitations, end conditions, in regard to selection and location of lands and otherwise, of an Act of Congress approved March three, eighteen hundred and sixty-three, entitled *An Act for a grant of lands to the State of Kansas, in alternate sections, to aid In the construction of certain railroads and telegraphs in said State':

Provided, That

said railroad shall be a public highway and shall trans­ port troops and munitions of war of th© United States free of charge#" This Act was accepted by the Atchison, Topeka and Santa Fe Hail Hoad Company, but no work was done on th© road.

On Kerch 6, 1866, the above rights were transferred

to the Union Pacific Hallway Company* Southern Branch. The assignment was recognized by the Legislature of the State of Kansas throxigh "Resolutions Ratifying, the transfer of certain Railroad Lands."1

There followed, soon after, the Act of Congress of July 25, 1866,2 granting lands to the State of Kansaa to aid In the construction of the Kansas and Neosho Valley Railroad end Its extension to the Red River.

i

Laws of Kansas, p. ISO (1867). United"St©tea' Statutes at Large, vol. 14, P*

,

234 The Act further provided: "That should the Leavenworth, Lawrence and Fort Gibaon Railroad Company, or the Union Pac­ ific Railway Company, Southern Branch* construct and complete its road to that point on the southern boundary of the State of Kansas where the line of said Kansas and Neosho Valley Railroad shall cross the same* before the said Kansas and Neosho Valley Railroad Company shall have con­ structed and completed its said road to said point* then and in that event the company so first reaching in completion th© said point on the southern boundary of the State of Kan­ sas shall be authorized* upon obtaining the written approval of the President of the United States* to construct and operate its line of railroad from said point to a point at or near Preeton.*' On October 10* 1860* the name of th© Kansas & Neosho Valley Railroad Company was changed to Th© Missouri River, Fort Scott & Gulf Railroad Company.

In May* 1870*

th© name of th© Union Pacific Railway Company* Southern Branch* was changed to Missouri. Kansas & Texas Railway Company. In the spring of 1870* an exciting race occurred between The Missouri River* Fort Scott & Gulf, th© Leaven­ worth* Lawrence & Fort Gibson, and the Missouri, Kansas & Texas for th© prize of building through Indian Territory to Fort Gibson and Fort Smith. Strang© stories survive of th© rivalry, but the only one supported by the records is that the Missouri, Kansas & Texas, 30 days before its line reached the Kan­ sas border, [email protected] a "flying squadron" to th© spot where It was to cross th© Kansas state line to establish priority

235 by building © section of track between the State and Indian Territory*

The company was halted in this by an

executive order of President Grant’s, on report by Sec­ retary Cox of th© Department of the Interior*

let, du©

to withdrawal from the race by the Leavenworth, Lawrence & Fort Gibson and to the fact that The Missouri Elver, Fort Scott & Gulf Company, reaching Indian Territory first, had. built its line in the Spring River Valley (about sixteen miles west of the Neosho Elver) into th© Q,u©paw Reservation, where it had no rights, instead, of into th© Cherokee Nation, the Missouri, Kansas & Texas won the coveted right to build the north and south line through Indian Territory* On July 12, 1870, Secretary Cox reported to th© President that th© Missouri, Kansas & Texas had crossed the Kansas state line ©t noon on June 6, a few miles south of Chetope, Kansas* An account of this construction is contained in th© first annual report of th© Company, issued in May, 1672, reporting its operations up to and including March 31, 1872, from which th© following is an excerpt: "Your road has been constructed, and well constructed, with perhaps unparalleled rapidity* Work was first eouanenoed under a contract mad© with the Land Grant Railway and Trust Company, in November, 1868, for th© construction of th© line from Junction City to Chetopa, 182 miles; th© contract requiring that th© whole line should be completed by May 1, 1872* It was completed and accepted by the company, October 1, 1870, or nineteen months sooner than was required by contract*

236 "In October, 1869# th© ©am© company under­ took the construction of the line from Sedalia to Parsons, ©bout 160 miles, and this line was completed through, and accepted March 1, 1871. At the same time work was being carried on in the Indian Territory, and on th© Holden & Paol© line, and has sine© progressed, until today there are 551 miles of completed road, that have been constructed since November, 1868— forty-two months— being an average of a little over half a mil© of completed railroad for ©very working day during the past three and a half years." The Missouri, Kansas & Texas Company suffered serious financial reverses during the period of con­ struction*

It lost the bonds of Davis county, amounting

to #165,000, because of failure to complete the road to the south line of the county within the prescribed time. The over-run was only a few days and was caused by a flood that washed away the railway bridges across th® Smoky Hill River end did other damage to the road*

The bonds were

refused by th® County Commissioners and their position was sustained by the Supreme Court of th© S t a t e T h e Commissioners of Coffey County also refused to issue th© bonds voted to the company by that county, amounting to #200,000, on th© ground that th© Land Grant Hallway & Trust Company, the contracting party, had no legal right to transact business in th© State of Kansas; this position was also sustained by th© Supreme Court*2 The company *

Land Grant Railway & Trust Company and another vs*

2

Board 0omms si oners Davis Count y, b Kan. 3*56. Railway & ‘Trust Company w * Board County Conmiissloners Coffey County, b Ken. 149*

237 lost 270,970*7® acres of lands granted, because it was within the 0M g e Ceded Reservation,3- th© United states courts holding Congress had exceeded its authority in voting a grant of Indian lands; 126,93®#79 acres of lands granted were lost by reason of conflicting limits with other road© and preemption claims.^ On December 1, 1880,^ the physical property of the Missouri, Kansas & Texas Railway Company was leased to the Missouri Pacific Railway Gojspany, but th© lease was terminated after the appointment of receivers for the former railroad property in June, 1S8S, because of default in payment of interest* Under a plan of reorganisation, dated November 27* 1869, the company was reorganised, without foreclosure, by unanimous consent of all security holders, the old securities being retired by th© substitution ©nd exchange of securities. On June 8, 1691, the receivers were discharged and the property delivered to the Missouri, Kansas & Texas Railway Company*

On November 24, 1899, ’fh© Kansas City

& Pacific Railroad Company and th© Missouri, Kansas & Texas Hallway Company (1865 corporation) consolidated under the name of th© Missouri, Kansas & Texas Railway Company.

i

4

34 Valuation Reports 434*

23& A receiver was again placed in control of the property on September 27, 1915, this receivership oontiau1 ing until April 1, 1923* At judicial sal© in December, 1922, the properties of the Missouri, Kansas & Texas Rail­ way Company, except for certain minor segments were pur­ chased by a new corporation, the Miss ouri-Kan.sag-Texas Railroad Company* On April 1, 1923, the new owners assumed control and operation of the property.

2

Th© following table shows the names of the Kansas 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 in the first column*

2

34 Valuation Reports 294, 395* Ifeia.. p« 294.

239 Table 10 [email protected]~Texa$ Railroad Company— An Kansas

1*

KAME

IIieOHPOMflOH

Kiss auri~KansaB~Texas

Under general lawn of Missouri, 1922*

Railroad Company, 2, Missouri, Kansas k Texas Railway Company,

Under general laws of■ Kansas, Nov.* 24, 1899,

by consolidation of 5 and ?, 3,

The Missouri * Kansas and northwestern Rail­ road Company,

Under general laws of Kansas, May 17, 1900,

SUCCESSION

Sold at foreclosure sale December, 1922* 'Trans* ferred to 1, April I, Sold to; Missouri, Kansas and Northwestern Railroad Company, May 13, 1902,.

which was sold to 2, day 20, 4*

The Fort Scott, Iole. and Western Railway

Under general lews of Kansas, Fun©'24, 1901,

Bold to 2, April 10, 1902*

Under general laws of Kansas,, duly 24, 1886,

Consolidated with 7, Moir* 24, 1899 to form 2#

Company»

5*

The Kansas City & Pac■ifie Railroad Company,

6,

Parsons ©n& Pacific Railroad Company,

Under general laws of Kansas, Deo* 16, 1885*

sold to 5 , m y 27,

7,

Missouri, Kansas A Texas Hallway Company

Tee 8,

Consolidated with 5' to form 2, Nov* 24,

Missouri, Kansas A Texas Railroad Company,

Under general lews of Kansas, May 15, 1870*

Hame changed to 7,

9,

Missouri, Kansas k Texas Railway Company,

Bee 10*

Consolidated-with 12. end.'

10,

Union Pacific- Railway 0ompany, Bouthera Branch,

Under general laws of Kansas, Sept* 25, 18'

(1865 corporation),

8,

34 Valuation Reports 397*

Dec* 12, 1670*

13 to form 8, lay 15, 1870* Mame Changed to 9, . May 23, 18?0*

HAM1

INCORPORATION

SUCCESSION

The Southwestern Mineral Railway Com­ pany*

Under general laws of Kansas, Sept* 22, 1894*

Property conveyed to 7, Nov* 23, 1894* Merged with 7#'July 13, 1896*

Neosho Valley end Bolden Railway Company*

Under general laws of Kansas, May 7, 1870*

Consolidated with 7 and 13 to form 8, May'15, 1870*

Mabett® and Se&alia Railway Company*

Under general laws of Kansas, May 7, 1870,

Consolidated with 7 and 12 to form 8, May 15, 1870*

241 Til© kissouri4Kansas~Texas Railroad Company, the present corporation, was created after the Missouri, Kansas & Texas Railway Company was sold at judicial sale in December, 1922,1 MlQaQuri, Kansas & Texas Railway Company was incorporated under the general lews of Kansas, Bovember 24, 2 1899* lb formed by consolidation and merger of the Missouri, Kansas & Texas Railway Company {1865 corporation) and The Kansas City and Pacific Railroad Company, for the purpose of forming a single corporation, under the name of the Missouri, Kansas & Texas Railway Company.^3 The initial financial requirements of the Missouri**[email protected] were met through the issuance of capital stock and funded debt, the greater part of which were issued to the Land Grant Railway and Trust Company, the International Railway Improvement Company, and three affiliated companies, namely, the Southwestern Company, the Southv*est©ra Development Company, and the Southwestern Goal and Improvement Company, at agreed rates per mil® for road constructed or purchased by them for the Katy*^5 The principal issues of the Katy*s funded debt that were sold for oash were handled by Speyer and Company on a commission basis, 6 i f ? \ i

34 Valuation Reports 294. Ibid.. P. 39^ Ibid., p. 393. Hereinafter called "Katy.’ 34 Valuation Reports 400. Idem.

242 During the receivership of 1888-1891, certain bondholders and stockholders of the Katy designated Frederick P. Olcott, president of the Central Trust Company, of Hew York, Joel F. Freeman, treasurer of the Standard Oil Company, Henry w. Poor, of Poor and Greenough, Henry Budge of Hallgarten & Company, Colgate Hoyt, of J. B* Colgate & Company, and Louis Fitzgerald, Pres­ ident of the Merchant a Txmst Company, of New York, as a committee for the purpose of purchasing the property of the Katy at foreclosure sal© for account of a newly created organization.^ tTnder th© plan of reorganisation, dated November 27, 1889, th© ooimitte© secured the return of the property to th© Katy on June 30, 1891, without foreclosure sale*^ Under an Act of Congress, approved March 3, 1863,^ and various subsequent acts, the state of Kansas received certain Government lands in that state to aid in the construction of certain railroads, and by an Act approved February 13, 1864,^ and various subsequent Acts by the Legislature of the state of Kansas, th© Katy was granted 971,990.78 acres of land, of which 572,081.21 acres were sold.

Of the remaining portion, 270,970.78

acres were lost because they were located within th© ^ 2 f ^

34 Valuation Reports 400-401. i b i ' & T 40l7 United States Statutes at Lar&e* vol. 12, p. 772* L & w a o*'XU9 (1864)»

243 Osage Ceded Reservation* the remainder, 128,938*79 acres, was lost because of conflicting limits with other roads and preemption claims* Under an Act of th© Legislature of the 3tate of Kansas, approved February 23, 1866, th© Land Grant Rail­ way and Trust Company purchased from the State of Kansas 89>095*&!> acres of land for consideration amounting to o #396,252.40* By deed dated January 2, 18?1, the Land Grant Railway and Trust Company conveyed to the Kety 89,416.35 acres of land without reported consideration and by deed of March 19, 1874, the Katy received 40 acres of land from th© Atchison, Topeka and Santa Fe Rail Road Company.

The Katy reports a net amount of #1,120,266.35

as having been received from the sale of 660,450.35 acres.2 Various parcels of land donated to the Katy and its absorbed companies by th© city of Parsons, Kan­ sas, and various individuals and companies were reported as having

a value of$140,132.93A

Inaddition

the Katy received $18,386.75 incash from

to lands,

thecity

of

Parsons and bonds from the city of Fort Scott, Kansas, having a par value of #25>000* The Kety issued #365,000 par value of its capital stock to Lyon county and Morris county, Kansas, | 34 Valuation Reports 434. ? Idem. * sis* I SSI** P* 433. 5 M m P* 434*

244 In exchange tor an equal par value of county bonds.

It

later transferred th© bonds in part payment for construc­ tion.^ The Missouri. Kansas and northwestern Railroad Company was incorporated May 17, 1900, in the state of •s Kansas** The property of this company was controlled on May 13, 1902, the date it was sold to th© Missouri, Kan­ sas and Northwestern Railroad Company, a Missouri cor­ poration, by F. J. Finney through ownership of its entire capital stock,

Mr* Finney represented the Katy as con­

sulting engineer in the construction and acquisition of new lines. 3 The Missouri, Kansas and Northwestern Railroad Company owned on date of sale approximately 23*20 miles of line extending from Mineral, Kansas, easterly to the Kansas-Missouri state line*

This mileage had been acquired

by construction in 1901*^ The authorised capital stock of The Missouri, Kansas and Northwestern Railroad Company was |10,000 par value, divided into shares of #100 par value each.

How

much was actually issued and th© considerations received therefor were not ascertainable from the records obtained.

i 34 FaluetIon Reports 433* 5 Itoia* : p*rT73* f Idem« 7 idem.. ^ S®.

5

245

The Fort Scott. lola and v/eatern Railway Company was incorporated June 24, 1901, in the state or Kansas.1 The carrier was controlled on April 10, 1902, the date it waa sold to th© Missouri, Kansas & Texas Railway Company, toy B, P* McDonald of Fort Scott, Kansas, then a director of th© Katy, through ownership of a majority of its out­ standing capital stock. Th© Fort Scott, lola and Restern Railway Company owned on date of sale 15*20 miles of railroad, extending from Moran to lola, Kansas, which it had acquired by construction during 1901-1902* 2

The construction contract

v/aa mad© with J* B* Henderson, of St. louia, Missouri, who assigned it to th® Middle States Construction Compeny *3 Th© Fort Scott, lola and Western Hallway Company issued $270,000 par value of capital stock but the con­ siderations received therefor were not ascertainable from available records.

All of th© stock issued was actually

outstanding on date of sal© and was exchanged for an ©cjusl par value of capital stock of the successor Th® Kansas City & Pacific Railroad Company was ^ 5 Incorporated in th© state of Kansas on July 24, l£>b6, and was controlled on November 24, 1899, the date it was i Z

7

34 Valuation Reports 397* Ibid*» p. 474* I5SS-

k3 PSfr Ibid!, p.

397*

246 consolidated with the Missouri, Kansas & Texas Railway Company (1865 corporation), to form the Missouri, Kansas & Texas Hallway Company, by the Southwestern Coal and Improvement Company through ownership of a majority of its outstanding capital stock.1

The Southwestern Coal

and Improvement Company was controlled by the Katy through stock ownership.^ Th© property of Th© Kansas City & Pacific Rail­ road Company was operated by its own organization from th© date of acquisition to July 7, 1839*

From that date

to November 24, 1899, it was operated by the receivers of the Katy, and from the latter date to date of con­ solidation the property was operated by th© reorganized Missouri, Kansas and Texas Railway Company*

Th© Kansas

City & Pacific Railroad Company on th© date of consolidation owned 130 miles of line, extending from Paola, Kansas, to a point in Indian Territory about five miles south of 4 Coffeyvill®, Kansas* Of the 130 miles of road owned by The Kansas City & Pacific Railroad Company on the date of consolidation, It hed acquired 31.25 miles from the Parsons and Pacific Railroad Company and 98*75 miles by construction*

Th©

construction work was done in part by th© International 1 ? 3 4

34 Valuation Reports 475. Idem., idem.* Idem. tdeS,

247 Construction Company and th© Cherokee Construction Gompany, and in part by Eddy and Cross, receivers of the Katy.1 The Kansas City & Pacific Hallway Company issued a portion of Its stocks and bonds to the two construction companies at the rate of #20,000 and $16,000, respect­ ively, per mile of constructed road, and a portion for th© purchase of the Parsons and Pacific Railroad Company.^ Under an agreement of May 13, 1890, the con­ struction companies sold to Poor and Greenough, bankers of New York, $1,673*000 par value of capital stock and #2,125*000 par value of first-mortgage 6 per cent bonds of this company for #1,000,000 cash and #833*000 par value of The Kansas City & Pacific Railroad Company’s firstmortgage 4 per cent bonds, which were to b© issued under a new mortgage,

This agreement further provided that

Poor and Greenough were to furnish funds, not exceeding #50,000, for the construction of a five-rail© extension 3 of the line into Indian Territory, On th© same date, May 13, 1890, the Katy leased th© property of The Kansas City & Pacific Railroad Com­ pany for a period of 999 year©#

Interest was guaranteed

by the Katy on th© 4 per cent bonds and the Katy received from Poor and Greenough the #1,875,G00 par value of The Kansas City & Pacific Railroad Company’s stock in exchange ^ ? ^

34 Valuation Reports 475* Idem# Idem#

248 for $300,000 par value of its own stock*

The $1,675,000

par value of capital stock was later sold by the Katy to the Southwestern Coal & Improvement Company for $134,000

in cash.

1

* From the date of its incorporation to date of

consolidation. The Kansas City & Pacific Railroad Company issued and assumed capital stock and long-term debt aggregating $7,625,000 par value, of which $5,000,000 was outstanding at date of consolidation*^ The authorized capital stock of The Kansas City & Pacific Railroad Company was $28,000,000 par value, divided into shares of $100 par value each*

The minutes

state that Of this amount $625,000 par value was Issued in pert payment for the Parsons and Pacific Railroad Com­ pany purchased, and $1,875,000 was issued to the con­ tractors in part payment for road constructed*

All of the

stock issued was outstanding on date of consolidation and was exchanged for an e^ual par value of capital stock of the successor*-* The xaiautes state that, in the purchase of the

property of the Parsons and Pacific Railroad. Company, Th© Kansas City & Paoific Railroad Company assumed $500,000

par v a l u e of that company*© 3G~yeer , 6 per cent bonds, dated September 1, 18S6, due September 1, 1916* ^

34 Valuation Reports 475.

2 ibia;; v; 476* 3

idem*

The

249

minutes also state that It issued first-mortgage 40-year 6 per cent bonds, dated June 1, 1887, due June 1, 1927, of #2,125,000 par value, and that of this amount $50Q,000 par value was issued to retire th© Parsons and Pac­ ific Eeilroed Company1© first-mortgage bonds; #1,500,000 par value was issued to the contractors in part payment for construction; and #125,000 par value was issued in settlement of #163,873*82 of interest due on bonds,^ It also Issued first-mortgage 100-year 4 per cent bonds, dated August 1, 1890, due August 1, 1990, of #2,500,000 par value*

These bonds were issued to

retire the #2 ,125,000 par value of 6 per cent bonds.

The

entire issue of 4 per cent bonds was assumed by the Katy in th© consolidation,

2

Th© Parsons and Pacific Railroad Company was incorporated in the state of Kansas on December 16, 1885* 0a July 2?, 1887, the property was sold to The Kansas City and Pacific Railroad Company.^ Th© Parsons and Pacific Railroad Company owned on date of sale approximately 31*25 miles of railroad, 5 extending from Parsons to Coffeyville, Kansas.-'

The Parsons end Paoifio Railroad Company had securities outstanding on date of sale as iollows!

1 f ? ‘t

34 Valuation Reports 476. Idem. Ibid.» P. 397. Ibid.. p. 477.

6

Idem.

5 USE.

6

3

250 Capital stock First-mortgage 30-yesr 6 per cent ^OG^s

#

625.000

500.OQQ

#17125,000

In the sal® of the property the capital stock was exchanged for an equal par value of capital stock of the successor, and th© bonds were assumed by th© successor* The,,.,SQuthwesteTO. Mineral Hallway Company was a 1 Kansas incorporation of September 22, 1894* The company conveyed all of its property, rights, and franchises except its right to be a corporation, to th© Katy on November 23, 1894, and by indenture of consolidation filed July 13, 1896, the company was consolidated with th© Katy* The Southwestern Mineral Hailway Company was con­ trolled on November 23, Ib94, the date of sale, by John A* James, contractor, through ownership of its entire capital 3 stock except directors’ qualifying shares* On July 13, 1896, the date of consolidation, it was controlled by The Southwestern Company through stock ownership*

The South­

western Company was affiliated with the Katy through ownership by th© Katy of Southwestern’0 capital stock.

4

The property of the company was operated by Th© Southwestern Company from date of its completion to May 1, 1895, on which date it was turned over to th© Katy. The railroad of The -southwestern Mineral Railway Company

i ^

? k

34 Valuation Reports 397* Ibid* 7 P * 480*' I55Sia and Associates, contractors, providing for the construction of the road*

On the same date th© contract was assigned

to Guy Phillips of Mew York, as contractor, who was ©a officer of The Missouri Pacific Railway Company (of 1880). There is nothing of record to indicate that Phillips was actually engaged in the building of th© road*^

The records

of The Missouri Pacific Hallway Company (of 1880) indicate that it furnished all the material used ©nd made ail pay­ ments in connection with construction of th© road* Th© company Issued part of its capital stock and all of its bonds to Guy Phillips, under the terms of the contract, in payment for road constructed.

These s©curiti©s

eventually reached The Missouri Pacific Railway Company (of 1880) which treated them as having been received in liquidation of th© advances that it had made in construct­ ing th© road*^ The authorised capital stock was originally #3,000,000.

This was increased to #5,^00,000 par value

by an amendment of the articles of incorporation dated April 29, 1886.

Of th© amount authorised, #485,700 par

value was issued to the contractor at par for an unappor­ tioned part of road constructed, and $216,000 par value was issued in exchange for an equal par value of bonds of o \

4° Valuation Reports 530* Idem.

several Kansas townships*

300 All of the stock was outstanding

on data of consolidation and was exchanged for an equal par value of stock of The Kansas and Colorado Pacific Rail­ way Company| under terms of the agreement for consolida­ tion*^

The contractor received $705,000 per value of first-

mortgage 6 per cent bond© of th© company for an unapportioned part of road constructed under contract*

As these bonds

were outstanding on date of consolidation, they were assumed by The Kansas and Colorado Pacific Railway Company in the oonsolida tioa*^ The lessee apportioned the earning ©nd operating expenses of the company, with the exception of interest on funded debt, on the total mileage operated by it*

For

the period October, 1886, to December 31, 1890, under this method of apportionment, a loss of $182,981*42 was incurred*^ The Missouri Pacific Railway Company (of 1880) recorded in its accounts th© following in constructing the railroad of this company;

recorded money outlay, #404,-

283,24; and transportation of materials, #71,022*42 The Verdigris Valley, Independence and Westera 5 Railroad Company was incorporated May 6, 1885, in Kansas,^ The property was operated under an implied leas© through­ out its separate corporate existence by The Missouri Pac­ ific Railway Company (of 1880) which company ©Iso controlled i

? 3

40 Valuation Report© 531* Idem* .

301 it on January 10, 1891, the date of consolidation.1

On

the date of consolidation the railroad owned © mileage of 80*63, extending from ieRoy to Bearing, Kansas, which mile­ age was all acquired by construction * The line from LeHoy to Winton, Kansas, was constructed under contract by E* B* and J* B* foster, contractors, and was completed in Aug­ ust, 1886*

About this date The Missouri Pacific Hailway

Company (of 1880) acquired control of the company and subsequently placed the road In operation*

An extension

from Winton to Peering, Kansas, was constructed in 1888, The Missouri Pacific Beilway Company (of 1880) furnishing the material and making all payments therefor*12 The authorized capital stock was #1,000,000*

The

company issued #804,900 of this amount for the following considerations;

unapportioned part of road constructed,

issued to contractors, #503,100; unapportioned part of road constructed, issued to lessee company, #56,900; in exchange for #244,500 par value of township bonds, $244r* 500; not known, but recorded at #400*

The entire issue was

outstanding on date of consolidation ©nd was subject to ex­ change, par for par, for stock of The Kansas and Colorado Pacific Hallway Company, the consolidated company, under the terms of agreement for consolidation* The company issued its first-mortgage 5 per cent bonds in exchange for the following considerations; 1

40 Valuation Reports 532.

3

Idem*

302 unapportioned part of road constructed, issued to contrac­ tors i #750,000; unapportioned part of road constructed, issued to lessee company, #56,000*

Th© entire issue, $806,-

000 par value, was outstanding on date of consolidation and was assumed by The Kansas and Colorado Pacific Railway Company I& the consolidation*^* The Grouse Creek Railway Company was incorporated 2 under the general laws of Kansas, April 2, 1887* It was controlled by The Missouri Pacific Railway Company (of 1680) on January 10, 1891, the date of consolidation, through stock ownership*

Th© property was operated under an Implied

lease by the same company from the date it was acquired to date of consolidation*

On the date of consolidation the

railroad owned amounted to 25*07 miles, situated wholly in Kansas and extending from Dexter to Arkansas City#

Xt had

been acquired by construction under a contract with James Hill of Arkansas City, K a n s a s About July, 1887, The Missouri Pacific Railway Company (of 1880) acquired con­ trol of th© property through purchase of the ©eeurltie© which had been issued to the contractor In payment for con­ structing the road*4

some ©mall expenditures were subse­

quently made by the controlling company to complete con­ struction of th© road* 1

40 Valuation Reports 532*

|

Ibid., p. 40fe.

f H U . . P. 533. 4 rnm*

303 The company issued part of Its capital stock and all of its bonds in payment for road constructed*

The

authorized capital stock was #600,0-00 par value, classified a® common, of which #397,400 was issued at par to the con­ tractor in part payment for road constructed and #104,000 par value was Issued in exchange for ©n equal par value of township bonds*

This stock, outstanding on date of con­

solidation, was exchanged for m

equal par value of the

stock of ./The Kansas and Colorado Pacific Railway Company, the consolidated company, under the terms of agreement for consolidation*

The contractor received 1376,000 par value

of. first-mortgage 6 per cent bonds from th® company inpart payment for road constructed, ail of which were out­ standing on date of consolidation and were assumed by The Kansas and Colorado Pacific Railway Company.^ A loss of #131,147.51 from operations ws®-record­

ed by the lessee for the period February, 1888, to December 31, 1890,

The lessee absorbed all earning® and #et ©11

operating expenses, apportioning these to the carrier on th© basis of the total mileage operated by it. It is of record that in July, 188?, all the securities which th© contractor had received in payment for construction, 1773,400 par value, were acquired by The Mis­ souri Pacific Railway Company (of XS80) In payment of its advances of #225,630 for the construction of the property i

40 Valuation Report® 534* , ldem*

of the company*

the lessee recorded in its accounts

|707*SO of money outlay in connection with the completion of the railroad of the company*^ The Interstate Railway Company was incorporated under the general law® of Kansas, through articles of con-* solidation, dated June 30, 1890, filed in Kansas, July 3, 1890*

2

On January 10, 1891, the date of its consoli­

dation, it wa© controlled by The Missouri Pacific Hall­ way Company (of X8B0), through stock ownerships

Th©

railroad owned by th© company on date of consolidation was a property 101*43 sidles in length*

On© section ex­

tended from Monluth Junction, Missouri, to LeRoy, Kansas, 74*31 miles 5 the other from Interstate Junction to Madison, Kansas, 27*12 miles*

Of the 101*43 miles of road owned by

the company, 53*26 miles were acquired from The Inter-State Railroad Company and 48*1? miles from The St* Louis & Emporia Hail Road Company*^ The authorized capital stock was #5,000,GOO of which #1,622,800 was issued In exchange, par for par, for #770,700 par valu® of stock of The St. Louis & Emporia Rail Road Company and #852,100 par value of stock of Th© Inter-State Railroad Company*

This stock was outstand­

ing on date of consolidation and was exchanged for an equal par value of stock of Th© Kansas and Colorado

305 Pacific Railway Company in the consolidation forming that c o m p a n y T h e records of The Kansas and Colorado Pacific Railway Company indicate that The Interstate Railway Com­ pany issued #1,622,000 par value of first-mortgage 6 per cent bonds*

The considerations received for the bonds

when issued were not ascertainable from the available records, The bonds were assumed by The Kansas and Col­ orado Pacific Railway Company in the consolidation form2 lag that company* The St*.Louis & Emporia Rail. Road Company* a Kansas incorporation of February 2, 1881, was controlled by Th© Missouri Pacific Railway Company (of 1080) on July 3, 1890, the date of consolidation, through stock ownership*

Th© latter company also operated the property

through an implied lease from the date it was placed In operation to th© date of oonsoildatlon# On the date of consolidation the company owned 48.17 miles of road, a U in Kansas, sections:

It consisted of two

on© section extended from a point on th© Ean-

sas-Mlssouri state line southwest through Linn county to the east line of Anderson county, 27,91 miles; the other extended from a point on the west line of Rich township, Anderson county, westerly to the town of LeRoy, 20.26 miles,**' i 40 Taluatlon Heports 535* ? Idem, 7 231] •> PP* 406, 535* 4 Ml*, P* 535*

306 A contract for construction was made with Th© Kansas and Colorado Construction Company which was sub­ sequently assigned to th© Kansas and Missouri Improvement Company, but to what extent the road was constructed under 1 these contracts was not determined* About November, 1886, The Missouri Pacific Hallway Company (of 1880) obtained control of th© property by acquiring th© capital stock which had been Issued to th© construction companies.

The

records of The Missouri Pacific Hallway Company (of 1880) indicate that expenditures were mad© by that company in constructing th© road of Th© St* Louis A Emporia Hail Hoad Company, beginning about October, 1884*

2

Earnings accrued to, and operating expenses were met by, th© lessee,

These Items, with th© exception

of interest on funded debt, were apportionments made by th© lessee based on th© total mileage operated by it*

A

condensed summary of the income accounts for the period from November, 1886, to July 3, 1890» shows thes© totals: railway operating revenues, JlS9#.397*195 railway operating expenses, #201,548,04; railway tax accruals $19,034*43; and non-operating income $376*43*

An income debit bal­

ance of #30,308*85 was transferred to profit and loss#^ Of th© authorized capital stock of $6,000,000 par value, $643,200 was issued to th© construction com­ panies and #127,500 was issued in exchange, per for par, i ?

40 Valuation Reports 535* idem* Ibid*» p. 536#

307 for township bonds*

All of the stock issued was out­

standing at date of consolidation and was exchanged for stock of The Interstate Railway Company in the consolidation*

2

The investment in road and equipment of the

company, Including land, at the date of consolidation was stated in its books as #770,700— this being the total of th© capital stock issued* Beginning in October, 1884, Th© Missouri Pac­ ific Railway Company (of 1880) recorded in its accounts outlays in connection with construction of the property of this company as follows:

recorded money outlay, #409,-

685*56; and transportation of materials, $29,413*64.^ The Inter-State Railroad Company was incorporated May 29, 1885, in K a n s a s O n July 3, 1890, the date of consolidation, it was controlled by The Missouri Pacific Railway Oompahy (of 1880), through stock ownership*

Th©

latter company also operated th® property from the date of its acquisition to date of consolidation under an implied lease*

Th© railroad owned on date of consolidation amount­

ed to 53*26 miles, 37*65 miles in Kansas, and 15*61 miles in Missouri.

It consisted of three sections:

one extended

from Interstate Junction to Madison, Kansas, 27.12 miles; another froxa a point on the Linn-Anderson county line to the east line of Rich township, Kenses, 10*53 miles; and th© third from Monluth Junction, Missouri, to a point on \

40 Valuation Reports 536.

1 Mm* i Idem*

4 Ilia., p. 406 .

th© Missouri-Kansas border* 15.61 miles. age was acquired by construction*^

All of this mile­

The records indicate

that a contract was mad© with th© Kansas and Missouri -Con* struction Company* but to what extent the road was oonstructed under the contraot was not determined*

2

About

November, 1886, Th© Missouri Pacific Hailway Company (of 1880} obtained control of the company by acquiring capital stock which had been issued to th© construction company* The Missouri Pacific Kailway Company (of 1880) beginning with October* 1886* made expenditures totalling #115*652.57 in connection with the construction of the road of The Inter-State Bailroad Company*3 The authorised capital stock was $5*000,000 per value* of which #795*100 was issued at par to th© con­ struction company and #57*000 was issued in exchange for an equal par value of bonds of various townships*

This stock*

outstanding on date of consolidation* was exchanged for stock of The interstate Hallway CoBipany*^ Th© earnings accrued to* and operating expenses were met by, the lessee*

Th© lessee mad© apportionments

of all items* other than interest on funded debt, on the basis of the total mileage operated by it*

Computed thus*

the results of corporate operations for the period November* 1886, to July 3* 1890, shows e. debit balance of $33,512.63* 40 Valuation Reports 536. ? Ibid** p. 537. f Idem. « Idem* *' Idem* t

309 The Fort Soott, Wichita and Western Baliway Company was a Kansas incorporation of July 6, IBS?,3* The property of this company was sold on ^uly l f 1891, to Th® Kansas and Colorado Pacific Hailway Company*^

It was con­

trolled on the date of Its sale by The Missouri Pacific Hallway Company (of 1880) through stock ownership.

Th©

property wes operated by its own organization from August 1, 1887, th© date the property was acquired, to the date of 3 sale. The railroad owned lay in Kansas, and aggregated 309.25 miles***' It consisted of a main line extending from the west side of the Harms ton River at Fort Scott in a west­ erly direction to Kiowa, Kansas, and a branch line extending from Eldorado to McPherson, Kansas, which had been acquired from th© St* louis, Fort Scott & Wichita Railroad Company by purchase after foreclosure under deed of The Union Trust 5 Company of Bew York, trustee, dated August 1, 188?* The par value of capital stock and long-term debt Issued by the company in acquiring th© property of th© predecessor company in the reorganization of 188? was 1385,114.45 more than th© par value of the actually outstanding securities of that company immediately prior thereto.^

Th© authorized capital stock was #7,000,000

par value, share® #100 each, all of which was issued at

i 40 Valuation Reports 406* § Idem* ? E H * . P‘ 538. 7 Idem. f 22s* IdeS.

3X0 par in consideration for road and equipment purchased* This stock was actually outstanding on date of sale and was exchanged at par for stock of the successor**■ The company issued §5*666,000 par value of funded debt at par in part consideration for roed and equipment purchased*

Included in this total were #4,666,000 par

value of first-mortgage, 7 per cent bonds, and $1,000,000 par value of second-mortgage, 6 per cent bonds*

Both

issued were outstanding on the date of sale and were assumed by th© successor*^ A condensed statement of the income accounts for the period August 1, 188?, to date of sale, show© these totals:

railway operating revenue® $2,140,555*94;

railway operating expenses $2,769,133*25; railway tax accruals #235,360.49; deductions from gross income #1,279,* 261.66; and © consequent debit balance transferred to profit and loss of #2,143,199*46, which was also the debit balance in the profit and loss account on date of sale*-' The company did not declare any dividends* The investment In road and equipment, including land, on date of sal© was stated in the books as $12,666,000; offsetting were #7,000,000 in stock, $4,666,000 in first-mortgage 7 per cent bond®, and $1,000,000 secondmortgage 6 per cent bonds*^ \

|

40 Valuation Report© 53^. Idem.

311 The

tt Fort Scott & Wichita Railroad

Company was incorporated under the general laws of Kansas, through articles of consolidation dated October 20, 1885, filed in Kansas, October 29, 18$5*^

The property of this

company was sold at foreolQsur© sale June 28, 188?, after receivership begun January 20, 1887, to th© agent of holders of defaulted obligations and acquired August 1, IBS?, by The Fort Scott, Wichita dad Western Hailway Company/2 The St* Louie* Fort Soott. and Wichita Hailroad Company was incorporated under th© general law© of Kan* sas, February 23, 1880; and on August 26, I860 the name was changed to Saint Louis» Fort Scott and Wichita Hail* road Company 3 The St. Louis> Fort Soott & Wichita Hailroad

Company was formed under the general laws of Kansas, through articles of consolidation, dated October 20, 1885, filed in Kansas, October 29, 1885 by th© Saint Louis, Fort Soott and Wichita Hailroad Company— fomerly the St* Louis, Fort Scott and Wichita Hailroad Company-*and the Ellsworth, McPherson, Hewton and Southeastern Railway Company.^

The

accounting record© of th© St. Louis, Fort Soott & Wichita Hailroad Company and the Saint Louis* Fort Soott and Wichita Railroad Company are continuous without distinction made a© between the two companies* 1 r

40 Valuation Reports 538.

rMfK, p. 40b.

Therefore, for the

312 purposes of till® 3?©port, th© two companies are treated as one, reference herein being made to the St* Louis, Fort Scott & Wichita Hailroad Company* On the date of consolidation, October 29, IBS5# the Saint Louie, Fort Scott and Wichita Hailroad Company controlled the Blleworth, McPherson, Newton and South1 eastern Hallway Company through stock ownership. Th© St* Louis, Fort Scott & Wichita Hailroad Company was controlled on June 28, 1887, the date of foreclosure sale, by Th® Missouri Pacific Hallway Company {of 1880} through stock ownership* The property of this company was operated by its own organisation from July 1, 1881, the date the first section of the road was placed in operation, until the receivership, January 20, 1887.

From that date the prop­

erty was operated by a receiver until it was conveyed to the Fort Soott, Wichita and Western Hallway Company, Aug­ ust 1, 188?*^

As previously noted the property owned lay

in Kansas, and totalled 309*23 miles*

It consisted of a

main line extending from th© west aid© of the Mama ton Biver at Fort Scott, in © westerly direction to Kiowa, Kansas, and © branch line extending from Eldorado to Mc­ Pherson, Kansas.*1, ^ 1 f

40 Valuation Escorts 339* Idem. Idem* Idem*

Of the road owned by the company on date of foreclosure sale, It had acquired 31.73 miles from the Ellsworth, McPherson, Newton and Southeastern Hallway Company and 277*50 miles by construction*

An undetermined

part of the road between Fort Scott and Iola, Kansas, was constructed on right-of-way, partially graded, form­ erly owned by the Fort Scott, Humboldt and Western Hall­ way Company.

The construction work of the company prior

to 1884 was performed pertly by contractors, none of whom appears to have been affiliated with the company, and partly by company forces*

Certain extensions built during

the years 1884-1886 were constructed under contracts with Ouy Phillips, an officer of The Missouri Pacific Railway Company (of 1880).1 The company disposed of |2,73$,000 par value of its first-mortgage bonds for cash at 95 through Moran Brothers, bankers of New York City, who acted a© financial agents under a contract dated December 23, 1880*

Moran

Brothers received as compensation for their services #623,000 par value of the capital stock of the company and $15,000 cash,2 Th© authorized capital stock was #7,000,000 par value, ©here® #100 each, ©11 classed as common.

This com­

pany issued stock in exchange for the following recorded cons id©rations s^ * 2

W Faluatlon Reports 539. xbid*V P* !>40.

314 Unapportioned part of property of the Fort Scott, Humboldt and Western Railway Company Uhapportioned part of property of The Ellsworth, McPherson, Newton and Southeastern Railway Company Investments in Kansas town and township bonds Charged to Wichita Township in open account Total considerations Issued to incorporators of th© company for services and eommissions in connection with the exchange of stock for Kan­ sas town and township bonds, and charged at par to invest­ ment in road and equipment account Issued to Moran Brothers, bankers of New York City, aa © bonus in connection with th© ©ale through them of #2 ,738,000 par value of bonds, and charged at par to the investment in road and equipment account Total par value issued end outstanding, canceled on sale of property

#3 ,600,000.00 484,500.00 501,885.55 3.500.00 $4,589,885.55

1 ,400,000.00

625.000.00

#6,614,685.55

As previously noted a funded debt consisting of #4 ,666,000 par value of first-mortgage 7 per cent bonds and

n

,000,000 per value of second-mortgage 6 per cent

bonds was outstanding.

These bonds were exchanged for

bonds of th® successor.1

Discounts aggregating #775,*

447 *22 , together with expense of #160,121.43, were

charged to Investment la road and equipment.® * 2

40 Valuation Reports 541. Idem.

A condensed summary of the Income accounts for the period July 1, 1881, to August 1, IBB7, shows

these items:

railway operating revenues, #2 ,890,252.015

railway operating expenses, f2 ,240 ,096 -475 railway tax accruals, #143,131.805 non-operating income, $558 ; deductions from gross income, #1 ,000 ,193 .2?; and a resultant income debit balance transferred to profit and loss of #493 ,413 .53 .1 A condensed summery of the profit end loss

accounts for the corresponding period shows credits totalling #15,417.19 ©nd debits #515,931.66— with a con­ sequential resulting debit balance on August 1, 188? of #500,514.47.

The credit© ©re miscellaneous item® of #15,

217 *19 , and the remainder, #200 , representing the value

assigned to #2,000 par value of Hillerton Town Company stock*

The debits represent the net debit balance trans­

ferred from income #493 ,413 .53 , and miscellaneous debits 2 #22 ,518*13 . Mo dividends were paid by this company* Investment in road and equipment, including land, on dat© of .foreclosure sale was stated in the books as #12 ,399 ,001 .24 , analyzed as follows:*' For property of the Fort Scott, Humboldt and Western Hailway Company acquired by purchase, recorded money outlay, #64,137.84, i 3

40 Valuation Reports 542. Idem. Hem.

316 and stock issued at par, #3,6GG,~ 000 For property of the Ellsworth, McPherson, Mewton and South­ eastern Railway Company acquired in the consolidation of 1883* capital stock issued at par Construction and additions and betterments, recorded money out­ lay, #2,382,875*70$ first-mortgage 7 per cent bonds Issued at par, #1,444,000; first-mortgage 7 per cent bonds issued at per in pay­ ment of liability of the Ells­ worth, McPherson, Mewton and Southeastern Railway Company, incurred in the construction of Its road, #484,000; secondmortgage 6 per cent bonds Issued at par, #175,000; equipment notes issued at par, $161,354*41; nonnegotiable debt, representing credit given the Missouri Pacific Railway Company (of 1880} in open account, #354,200; short-term notes issued at par, #44,578.50; Investments in Kansas town and township bonds, recorded value, $141*500; interest during con­ struction, nature of outlay not determined, #37,925*12; trans­ portation of materials, recorded amount I52,919*97; use of equip­ ment, recorded amount, #5*047.41 Total of above items Less retirements, equipment credited at Met of above items Other items, charges, capital stock issued to incorporators of the company for services and com­ missions in connection with the exchange of stock for Kansas town and township bonds, $1,400,GG0; stock Issued to Moran Bro­ ther®, bankers of Hew York City, ©a © bonus in connection with the

13,684,137*84

484,500.00

5.283.401.11 #9,452,038.95 4.922.04 #9,447,116.91

317 sale of bonds, $625,000; discount on funded debt, #775,447*22 ex­ pense incurred in issuance of bonds, #23,221*43; expenses incurred ih acquiring Kansas town and township bonds, $1,638*18; cDismissions on sales of Kansas town and township bonds, #33,943*56; loss on Kansas town end township bonds sold, |27,591*42; overpayment to contractors, 13,244*85; payment incident to canceling contract, no details, #12,366; cancellation of uncol­ lectible part of draft taken for collection, consideration not ascertained, #239; interest on equipment notes, #49,192.6? Total recorded as of date of sale

2*951.884*33 #12,399,001*24

The Fort s.oott * Humboldt and Western Hallway Company wes incorporated under the general laws of Kansas, through articles of consolidation, dated October 31, 1871 o The property was sold at foreclosure sale Fun© 21, 1875* This company acquired the property and rights of the Fort Scott and Alien County Railroad Company through the eon3 solidation of those companies on October 13, 1871* A partially constructed roadbed between Fort Scott and Humboldt, Kansas, was acquired by the holders of defaulted obligations.

The Saint Louis, Fort Scott and Wichita

Railroad Company acquired the property in turn on September 25, IS80 W 0 % 1

Valuation Reports 406. Ibid.. p. 543. Idem* 232* % P* 406.

31B The Fort Scott* Humboldt and Pacific Hallway SsSESZi a Kansas incorporation of August 5, 1371,^ was consolidated with the Fort Scott and Allen County Bail** road Company on October 13* 1871» to form the Fort scott, Humboldt and Western Hailway Company#

Ho property was

acquired by this company to the date of its consolidation* ^ The Fort Scott and Allen County Railroad Company was incorporated under the general law© of Kansas, June 1, 3 1370* This company consolidated its properties with the Fort Scott, Humboldt and Pacific Railway Company on Oct** 4 ober 13, 1871. A contract was negotiated by the company under which it would issue its capital stock in exchange at per for bonds of Bourbon county, Salem and Humboldt townships and the city of Humboldt, Kansas, and, in turn, surrender the county, to w ship and city bonds to the con** 5 tractor for grading its road* It also contracted to issue first-mortgage 8 per cent bonds at the rate of #15 ,000 par value per E&le for the construction of its railroad, including equipment, and to secure.the surrender of #300,000 par value of stock, issued in exchange for county, township, and city bonds, to the contractor, or, in lieu thereof, to issue to the contractor #350,000 par value of 7 per cent preferred stock. ^

40 Valuatioh Reports 544* \ Ibid** p. 406V , Idem# * IHI., p. 544. 5 TaSS.

6

319 ^he Ellsworth, t McPherson. Hewton and Southeastern Ei-llwsy Compsny, Incorporated In Kansas Kay 10, 1884,*^ was controlled by the Saint Louis, Fort Scott and Wichita Railroad Company on October 20, I$$5, the date of its consolidation with that company to form the St* Louis, Fort Scott So Wichita Railroad Company, through stock ownership*

2

The railroad owned on date of consolidation

amounted to 31*75 miles and extended from Eldorado to Hewton; It was acquired by construction under a contract with the West Kansas Construction

Company

*3

The company agreed to issue its stock and bonds to the West Kansas Construction Company, each at the rat© of f15,000 par value per mile of road constructed, also to surrender to that company all city and township bonds voted in aid of construction that might be received by this company in exchange at pax* for its capital stock* In lieu of the flrst^mortgeg© bonds which the West Kansas Construction Company was to receive as part consideration for the construction of the property, it accepted an equal par value of first-mortgage bonds of the St* Louis, Fort Scott & Wichita Railroad Company, which had acquired this company*a property in the consolidation*4 The authorized capital stock was |2,000,000 par value, shares #100 each, classified as common, of which i * j 4

40 Valuation Reports 406* m a . T V r 5U* x5©m» ILld*. p* 545*

320 #670,000 per value was Issued in exchange for the following recorded considerations:^ Ohapportioned part of road constructed 11 Dorado Township, bonds, par value Plum Orove Township, bonds, par value Milton Township, bonds, par value Richland Township, bonds, per value Hewton Township, bond®, per value City of Hewtoh. bonds, par value To various official®, charged to Investment in road and equipment account

#484*000 30,000 20,000 20,000 19,000 14,000 40,000 50,000

The entire Issue was outstanding on date of consolidation, 1484,000 being exchanged for stock of successor and 1193,-* 500 being not recognized in the consolidation* The investment in road and equipment, including land, on date of consolidation is stated in the books at #539,000, of which 1535*000 was for road constructed* This was offset by $484,500 stock issued at par; #50,500 stock issued to officials of the company at per; and #4,000 listed as other items, charge®, amount due under the construction contract in lieu of an equal par value of township and city bonds surrendered to officials of this company in consideration of their resignation*^ The contractor was entitled, under the terms of the construction contract, to receive first-^mortgage bonds at the rate of #15,O00 per mile of constructed road*

In

lieu of these bonds, the contractor accepted an equal par value of the first^mortgage bonds of the St# Louis, Fort Scott & Wichita Railroad* 1 2

40 Valuation.Reports 545* Idem.

321 The Central Branch Railway Company was incor­ porated In Kansas, June 29, 1898*^

Xt was controlled on

August 9* 1909, the date of its consolidation by The Missouri Pacific Hallway Company (of 1909), through stock ownership*

The property of the company was operated by

the latter company from the date it was acquired to the date of consolidation*

Th© railroad owned on date of con­

solidation 388*19 milea of line, all in Kansas, and con­ sisted of two main lines, one extending from Atchison to Lenora and the other extending from Downs to Alton, with branch lines extending from Greenleaf to Washington, from Yuma to Warwick, and from lamestown to Burr Oak*

Of the

road owned, 100,01 miles had been acquired from The Central Branch Union Pacific Hallway Company, 254*78 miles from The Atchison, Colorado & Pacific Hallway Company, and 33*40 miles from The Atchison, Jewell founty & Western Hallway Company. 2 The articles of consolidation provided for the issuance of capital stock of 17*585,000 par value, of which #4 ,500,000 was issued to holders of the capital stock of The Atchison, Colorado & Pacific Railway Company, #585,000 to holders of the stock of The Atchison, Jewell County & Western Railway Company, and #2,500,000 bo holders of the stock of The Central Branch Union Pacific Railway Company*3 The articles of consolidation also provided for the issuance ^

40 Valuation Reports 406.

f Ibid., p.' "5457" S S m

P« 546*

322 ©£ $3*459*000 per value of firat-mortgage bonds, to be secured by the property of The Atchison, Colorado & Pac­ ific Hallway Company and of The Atchison, Jewell County U Western Hallway Company, already constructed.^*

Of this

total $3*052,300 were issued in payment of a promissory not© of $4*500,000 issued by $h© Atchison, Colorado & Pacific Hallway Company, and $406,500 were issued in pay­ ment of a promissory note of $585,000 Issued by The Atohi7

son, Jewell County & Western Railway Company. ** The par value of capital stock and long-term securities issued or assumed by the company in acquiring the property of the constituent companies in the consolidation of July 8 , 1899 * was #1 ,626,000 less than the per value of the actual­

ly outstanding securities of those companies at the date of 3 consolidation. The company assumed $2 ,500,000 funded debt of the consolidating companies,^

The entire amount

of funded debt issued and assumed was outstanding on date of consolidation and was assumed by The Missouri Pacific Railway Company (of 1909 )*^ A condensed summary of the income accounts for the period June 12, 1899* to August 9, 1909* follows;6 Operating income; Hallway operating revenues Railway operating expenses 0 ?

40 Valuation Reports 546. Idem. f Idem, c Idem. 13H I*» PP* 546, 547. Idem.

$15*310,436.59 10 , 1.06,2isa&a.

323 Met revenue© from railway operation© Hallway tax accruals Total operating income Mon-operating income Gross income Deductions from gross income Met income

5,244,521*46 979.504.21 $ 4,265,017.27 74.589.37 # 4 ,339 .606.64 3.109.256.75 1,230,349.89

f

Disposition of net income, dividend appropriation© of income Income credit balance trans­ ferred to profit and loss

1.213.600.00 #

16,749*89

A condensed summary of the profit and loss account

follows Credits: Met credit balance transferred from income Miscellaneous credits consisting of proceed© from sal© of assets of predecessor companies acquir­ ed in the consolidation, #334>784*21; current assets of The Central Branch Union Pacific Hallway Company, #63,488.79; surplus earnings of consoli­ dated companies transferred to this company, #136,067*73; and other miscellaneous credits, 2 062.30

$,

Total Debits; Dos© on retired road and equipment Miscellaneous debits consisting of expenses paid in connection with foreclosure and receivership pro­ ceedings, #38,242.495 purchase of claim of Union Pacific Railway Company ©gainst The Central Branch Union Pacific Railway Company, #5,120.28; current liabilities of consolidating companies assum­ ed in consolidation, $60,237*35; and other miscellaneous debits,

1677*68 ^

4^ T&Iuatton Reports 547*

#

16,749.89

sakd&hsti 1113,152^92 48,038*18

l£tk»2Zh&>.

324 Total Credit balance consolidation

#152.315.96 date of #400,836.94

The investment In road and equipment, including land, on date of consolidation was stated in the books as #13,544 ,000, analyzed as follows:^ For property acquired in the consolidation of July 8, 1899, from the following: The Atchison, Colorado & Pacific Railway Company, stock issued at par, #4,500,000; funded debt issued at par, #3,052,500 #7,552,500.00 The Atchison, Jewell County & Western Railway, stock issued at par, #585,000; funded debt issued at par, #406,500 991,500.00 The Central Branch Union Pacific Railway Company, stock issued at par, #2,500,000; funded debt assumed at par, #2,500,** 000

Total recorded on date of oonsolidation

5 V000.000.00

$13,544,000«00

Besides the outlays above summarized the company charged to income #165*012*96, purported to cover additions and betterments to road and equipment, and #335,970*54 purported to have been spent for new equipment*

It is not

possible, solely from an analysis of th© accounts, to deter­ mine whether such charges represent the cost of additional property still in existence on the date of consolidation or outlays for renewals or replacements, in whole or in part, of property already charged to the investment in road 1

40 Valuation Reports 547#

325 and equipment account ana not written out,1 $ M Q m t m l Branch Union Pacific Railway Company, incorporated in Kansas, June 29, 1898, was controlled on July 8 * 1899* the date of consolidation, by the Union Pacific Hailway Company through stock ownership,2

The

property was operated by The Missouri Pacific Railway Com­ pany (of 1880} from the date it was acquired to the date of consolidation.

The company owned on date of consoli­

dation 100,01 miles of line extending from Atchison to Waterville, Kansas, which was acquired by purchase.^ The authorized capital stock was $2 ,500,000, The total amount authorized and #2,500,000 par value of first-mortgage 4 per cent bonds ware issued to the vendors In payment for the property of the company,^ The results of corporate operations, as shown in the income account of the company, for the period June 30* 1898 , to June 12 , 1899 * follows:**

railway operating rev­

enues, #568 ,901 .39 ; railway operating expenses, #370 ,982 ,83 ; railway tax accruals, #38 ,169*56 ; non-operating income, #8 ,085 ,04 ; and deductions from gross income, #108,333.33* A net income of #59*500.71 resulted* The Central Branch Union. Pacific Railroad Com­ pany was incorporated as the Atchison and Pike *3 Peak Railroad Company under a special Act of the Territorial i

40 Valuation Rup. qeM Idem, l Idem, T Idem, 5 1-3*5. 3

548.

326 Legislature of Kansas, February 11 , 1839#

The name was

changed to Central Branch Union Pacific Railroad Company, •January 1, 186? The company was controlled on June 27, 1898, the date of its foreclosure, by the Union Pacific Railway Com­ pany, through stock ownership.

The property of this com­

pany was operated by its own organization from the date of completion* September 8, 1868, until December 6, 188G.2 On that date, operation of the property was assumed by The Missouri Pacific Railway Company (of 1880} and con­ tinued until the receivership, October 13, 1893#

From

October 13» 1893, until June 30, 189§, it was operated by the receivers*

The railroad operated by the company com­

prised 388*19 miles of line:

e main line of 100*01 miles,

extending from Atchison to Waterville, was owned; the re­ mainder, 288118' mile®, was operated under lease*

The leas­

ed lines comprised two main lines, one extending from Waterville to Lenora, Kansas, the other from Downs to Alton, Kansas, end branch lines extending from Oreenleaf to Washington, from Yuma to Warwick, and from Jamestown to Burr Oak, Kansas.^

The mileage owned had been acquired by con­

struction, the construction work having been performed by William Osborn under a contract dated May 9, 1865#

The

first 40.01 miles of road from Atchison west was completed January 1, 1867, and the remaining 60.00 miles, January 20, i ? 3

40 Valuation Reports 406# B e e ' w ^ ^ 7 supraT 40 Valuation Reports 549#

327 1868, the entire property having been turned over to the company by the contractor on September 8, 1868*^ On April 3, 1865, sundry persons, subscribers to the capital stock, agreed to furnish not to exceed #480,000 to finance the original construction in return for which they were to receive #875,000 par value of capital stock and to share proportionately In the profits of the enter­ prise*

One of the subscribers, William Osborn, was on

May 9* 1865, awarded the contract for the construction of the road; he assigned certain fractional interests in the contract, together with the profits and proceeds to be derived therefrom, to R* M* Pomeroy and others# Under an Act of Congress, approved July 1, 1862, and subsequent Acts, the United States Government loaned its credit ?,to aid in the construction of © railroad and telegraph lihe from the Missouri River to the Pacific Ocean and to secure to the Government the use of the same for 3 postal, military and other purposes*” The amended Act provided for the issuance of 30-year 6 per cent bonds by the Government, these to be delivered to the Hannibal and Saint Joseph Railroad Company#

On May 26, 1865, these rights

were acquired by the Atchison and Bike’s Peak Railroad Com­ pany and subsequently by the Central Branch Union Pacific Railroad Company*

The interest upon these bonds was pay­

able by the Government as it fell due, but the railroad i 3

40 Valuation Reports 549* United states 'statutes at Large. vol. 12, p* 489* United' St© tea"'"Statutes at Large * vol* 13, P* 356*

328 company was obligated to make payments from its income to a sinking fund to reimburse the Government for the amounts so paid and to meet the principal of the bonds at maturity# A proportion of the amounts due the railroad company for

transportation service rendered was retained by the Govern­ ment to be applied, with the sinking fund, to the discharge of the debt at the maturity of the bonds*

The bonds to which

the railroad company was entitled, under these provisions, were for 100 miles of road at $16,000 for each mile, a total of fl^OO.QOO.1

TJhder the anumAed feet, this debt was laade

a lien upon the aided road subordinate to the first mort­ gage, limited to an amount not in excess of the par value of the Government bonds#

2

The Central Branch Union Pacific recorded the sale of the #1,600,000 par value Government bonds for #1,576,604#

Default occurred in the first-mortgage obliga­

tions, end the railroad was sold at foreclosure June 27, 1898, to the agent of the holders of the defaulted obliga­ tions and acquired as of June 30, 1898, by The Central Branch Union Pacific Hailway Company#

This aid thus pro­

vided by the Government became a loss to the United

S t a t e s

The authorized capital stock was #1,000,000* The entire amount authorized was Issued:

#600,000 for an

undetermined consideration to parties interested in th© 1 2

United States Statutes at Large* vol* 13, P* 356#

3

Ileoonstruotion Finance Corporation, Railrood Division, Report on th© Missouri Pacific Railroad System* p. 15, October, 1935*

r

"

r-11

1

JIr .

I ir i- Ii

1 11m i. 1.

*3

329 contract with William Osborn for construction of road, and #400,000 as a bonus to holders of stock options who received first-mortgage 6 per cent bonds in exchange for cash and other consideration*^

The company issued or assumed #3,-

830,000 of funded debt, the entire ©mount of which was out­ standing on date of sale*2

A total of #2,576,167*33 in

non~n©gotiabl© debt was also outstanding on date of sale.** A condensed summary of th© income accounts for the period October 1, 1868, to June 30, 1898, show© the following;

railway operating revenues, #23,994,956*09;

railway operating expenses,. #16,254,704*30; railway tax accruals, #1,734,26?.71| non-operating income, #254,798*13; and deductions from gross income, $11,744,818*89*

This

resulted in ©n income debit balance transferred to profit ©nd loss of #5,484,036.68*^ A condensed summary of the profit and loss accounts for the period October 1, 1868, to June 30, 1898, show® credits of #528,364*15 and debits of #6,206,802.78, with a debit balance on June 30, 1898, of #5,676,438*63*

The

credits ere all miscellaneous credits, of which 1447,232*05 represents net profit on sale of land, town lots, etc.; profit on sale of securities, 135,787*24; proceeds from sale of right-of-way and town lots $6,200; and other miscel­ laneous credits, #39,134*86. \

? ? ^

40 Valuation Report© 550* Idem* Ibid** p. 551* £dem»

The debits are net debit

330 balance transferred from income, #5 ,484 ,036 *68 ; dividend appropriation® of surplus, $230 ,000 ; miscellaneous debits, 1472 ,766 #10 , of which #330 represented loss on investments

(of which disposition had been mode) in other companies; and other miscellaneous, #472 ,216 *10 .^ The investment in road and equipment, including land, on date of foreclosure was stated in the books as #3 ,998 ,019 *76 , ©nalyaed as follows:^ Balances in construction and equipment account of William Osborn, con­ tractor, on October 1, 1068, (for which no analysis has been obtained), transferred to this account August 31, 1871 12,372,023*81 Additions and betterments and equip­ ment, recorded money outlay 558*496*13 ,130,519*94 less separately recorded retirements, proceeds from property sold 40*505*18 Met of above items

13,090,014*76

Other items: Charges* Mew York office aocouht, no detail* $742 ,765.04

Mew York ^-reasurer1® account written off Balance in old bills, account William Osborn Bohd coupon paid Interest paid on equip­ ment notes Total Credits# Depreciation on equipment Stock not issued Land sales Total credit® i

40 Yaluetion Report® 551* lb1,d*, p* 552*

155 ,040*72

36,186*94 30*00 15 *262*80 #949*285* 50 #23,370*50 14,600.00 3 »310*00 #41,280*50

331 Net oharg©

90S*005.QQ

Total recorded on date of foreclosure

13*996,019.76

The actual coat of the construction of this line was #2,731*347.00.

fhe railroad secured f2,537,469 from 1 the sal© of securities Atchison* Colorado & Pacific Railway Company

was incorporated under the general laws of Kansas, Jxme 1, Th© company was controlled on ^Tuly 8, 1899, the date of its consolidation with the Central Branch Railway Companyv by the Union Pacific B&ilway Company, through stock ownership* Th© Missouri Pacific Railway Company (of 1880) operated the property from the date it was acquired to the date of consolidation*

The company owned 254.76 miles of

railroad in Kansas on the date of consolidation.

It con­

sisted of two main lines, on© extending from waterville to Lenora, th© other extending from Dawns to Alton, with branch lines extending from Oreenleaf to Washington end from Yuma to Warwick, all of which had been acquired by purchase.^ The authorized capital stock of the company was #4,500,000 par value.

The total authorized par value of

stock and a promissory not© of $4,500,000 par value were Issued to the reorganization committee of the bondholders 1 ®

White, Henry K*, History of the Union Pacific Hallway, p# 49* in Valuation Report© 406 i.aA 40

Ibid.. p. S5fe.

In payment for th© property of The Atchison* Colorado and

Pacific Railroad Company*

The 14*500,000 par value of stock

was retired by exchange for stock of the same par value issued by The Central Branch Railway Company.^

Under the

terms of an agreement dated September 28, 1899* the bond­ holders reorganization committee sold the capital stock of this company, together with #585*000 per value of capital stock Issued by The Atchison, Jewell County & Pestern Rail­ road Company, to The Missouri Pacific Railway Company {of 1880) for an agreed consideration of #75,000*

Under the

terms of this agreement, the reorganization committee ac­ cepted #3*052,500 par value of first-mortgage bonds of The Central Branch Railway Company in exchange for the promissory note of #4 ,500,000 par value issued by this company* The Atchison* Colorado and Pacific Railroad Comnany was incorporated in Kansas, June 23* 1879*

%

through

articles of consolidation with The Atchison, Colorado & Pac­ ific Railway Company*

Th© Union Pacific Railway Company

controlled the property of this company on December 21, 1898, the date of foreclosure*^

The property was operated

by The Central Branch Union Pacific Railway Company under lease from the date it was acquired to July 1, 1898, and by Th© Missouri Pacific Railway Company (of 1330) for account of the receiver, from July 1, 1898, to the date of for©closure. 5 1 2 j

40 Valuation Reports 552. ibia.. p . 553.

TKi«

v% j.rv7

333 Th© railroad owned on date of foreclosure con­ sisted of 254*78 miles of line in Kansas*

The property

consisted of two main lines, one extending from Watervill© to Lenora, the other from Downs to Alton*

Its branch lines

lay between Ureenleaf and Washington and frpm Yuma to war-1 wick* Of the 254*78 miles, it had acquired 187*20 mile® of completed road, 51*28 miles of partially constructed road by consolidation, and 16*30 miles by construction*

2

The company Issued #1,351,700 per value of its authorized capital stock of #8,000,000*

It also issued

first-mortgage 6 per oeat toads of #4»0?0,000 par value.3

For th© period January 1, 1380, to December 21, 1898 the carrier reported a net inooiee of #151,489*16. 4 were paid by the company.

Ho dividends

Th© investment in road and equipment, including land, on date of foreclosure was stated in th© books as #5,595,496* 75; this covered property acquired in th© con­ solidation of December 22, 1879; outlays for completing construction of road acquired from th© Atchison end Denver Railway Company acquired In th© consolidation; and expend­ itures for construction of road under charter of The /tchlsoa, Republican Valley and Pacific Railway Company*

Of this

amount, #1,351,700 Represents stock Issued, #170,700 stock liability for conversion, #4,070,000 funded debt issued, I 40 Valuation Reports 553* 3 Idem* I f P * ^54 * 4 US*

334 ©ad #3,096*73 recorded money outlays***’ The Wateryill© and Washington Railroad Company was incorporated in Kansas, April 10, 1876^ and was consolidated with the Atchison, Colorado and Pacific Railroad Company on 3 December 22 , 1879* In the ratification of the consolidation agreement of December 22, 1879, by persons holding two-thirds of the outstanding capital stock, $60,000 of th© $73,000 par value Represented in the ratification was held by Washington township, Washington county, Kansas*^* The property was operated by th© Central Branch Union Pacific Railroad Com­ pany under lease from the date it was completed to th© date of consolidation*

At that time the company owned approx­

imately 20 miles of railroad extending from watervllle to 5 Washington, Kansas# Th© authorised capital stock was $600,000 per value#

Under the terms of th© consolidation agreement it

was provided that the stockholders of the company should receive capital stock of Th© Atchison, Colorado end Pacific Railroad Company at the rate of #6,000 par value for each mil© of road constructed in lieu of capital stock of this company surrendered*^ The Republican Valiev Rail Way Company was incor­ porated under the general laws of Kansas, November 3, 1876.? 1 0

40 Valuation Reports 534#

Ibid** p. 407* idem# 5 H H * t P* 554*

1 7

6 7

Ibid*# p. 407*

335 In the consolidation agreement with The Atchison, Colorado and Pacific Railroad Company of December 22, 1879, $249,800 par value of capital stock was represented: $60,100 par value owned by The Central Branch Union Pacific Rail­ road Company! $70,000 par value by th© county of Cloud, Kansas! #20,000 by the township of Clifton, Washington County, Kansas; and the remainder, #99,700 par value, by various Individuals*^ The Central Branch Union Pacific Railway Company operated the property under lease during its separate ex­ istence*

The company owned on date of consolidation approx­

imately 41*70 miles of railroad, extending from Greenleaf o

to Con© ordie, Kan aas»

The authorised capital stock was $900,000 per value*

Under the terms of the consolidation agreement of

December 22, 1879, entered into by persons holding twothirds of the outstanding capital stock, it was provided that the stockholders of this company should receive capital stock of The Atchison, Colorado and Pacific Railroad Com­ pany at the ret© of $6,000, par value for each mile of road constructed, in lieu of capital stock of this company %

surrendered *^ The Atchison* Solomon Talley and Denver Railway Company was a Kansas incorporation of August 16, 1878*^ i ?

40 Valuation Reports 55.5* Idem*

336

Persona holding two-thirds of the outstanding capital stock ratified a consolidation agreement with The Atchison, Col­ orado and Pacific Railroad Company as of December 22, 1879, #214 ,800 par value of capital stock being represented: #52,900 par value owned by Th© Central Branch Union Pac­ ific Railroad Company, the remainder being represented by various Individuals.^*

Th© property was operated by th©

Central Branch Union Pacific Railroad Company under lease from the date it was completed to the date of its corporate demise*

The company owned, on that date, approximately

71.20 miles of line located in Kansas.

It extended from

Concordia to Cawker and from Downs to Alton.

2

The authorized capital stock was #1,000,000* The stockholders of this company ©greed to exchange their stock for capital stock of The Atchison, Colorado and Pac­ ific Railroad Company at th© rat© of #6,000 par value for each mile of road constructed.^ Th© Atchison* Republican Talley and Pacific Railway Company was incorporated und©r th© law© of Kansas Aug­ ust 16, 1878*^

A total of #77,700 par value of capital

stock was represented in the ratification of & consolidation agreement with Th© Atchison, Colorado and Pacific Railroad Company December 22, 1879.^

Th© Central Branch Union Pac­

ific Railroad Company represented ®21,700 par value, th© i *

40 Valuation Reports 555* Idem.

7 Mm*

\

Ifrld.* P* 407* M m P* 555.

337 remainder was represented by various Individuals.^

A line

of railroad approximately 14*50 miles long was owned on date of consolidation.

It served from Yuma to scandia, Kansas.2

Stock of The Atchison, Colorado and Pacific Railroad Com** paay was to be exchanged for stock of this company at th© rate of $6,000 par value for each mile of road constructed by this company.^ Th© Atchison and Denver Hallway Company was incorporated in Kansas, December 27, 1878*

k

The company was con**

trolled on December 22, 1879, the date of its consolidation, 5 by Barnes P. Pomeroy, through stock ownership. The com** p&ny owned on date of consolidation approximately 39*30 miles of railroad from Gawker Oity to Kirwin, Kansas, and approximately 51*28 miles of partially constructed road extending from Kirwin to Lenora, Kansas*^ Capital stock of $6,400,000 par value was authori&-» ©d by the charter*

Under the terms of the consolidation

agreement it was provided that th© stockholders of this company should receive capital stock of The Atchison, Col-* orado and Pacific Railroad Company at the rat© of $6,000 par value for each mile of road constructed in lieu of capital stock of this company surrendered.7 ^

I

6 7

L O 1f»1 m a t i rm R e w o i-ts

Idem, Ibid.. Ibid.. SSiS•. Ideiu ibid..

p* 556. p* 407. p. 556. p* 407.

338 T M Atchison* Jewell County & Western Railway Company was incorporated under the general laws of Kansas, June 1, 1898*^

This company was controlled on July 8,

16999 th© date it was consolidated with Th© Central Branch Hallway Company, by the Union Pacific Hallway Company through stock ownership.

The Missouri Facifio Railway

Company (of 1880} operated the property from the date it was acquired to th© date of consolidation*

The company

owned, at time of consolidation, 33*40 miles of railroad extending from Jamestown to Burr Oak, Kansas, all of which was acquired from th© Atchison, J©well County and Western Railroad Company* Th© authorized capital stock was #563,000 par value*

Th© total amount authorised and a promissory not©

of #585,000 par value were issued to the bondholders* reorganisation committee in payment for the property pur* chased*

The #585,000 par value of stock of this company

was retired by exchenge for stock of the seme par value issued by The Central Branch Hallway Company.

Under th©

terms of an agreement dated September 28, 1899, th© bond* holders* reorganization committee sold the stock of this company, together with #4,500,GOG par value of stock issued by Th© Atchison, Colorado and Pacific Railroad Company, to Th© Missouri Pacific Railway Company (of 1880) for an agreed consideration of #75,000* ^

2

40 Valuation Reports 407* Jbi,dVf 'rp7 55S*

Under the terms of this

339 agreement, th© reorganization committee accepted $406*500 par value of firat-mortg&ge bonds of Th© Central Branch Hallway Company In exchange for the promissory note of $535*000 par value Issued by this company.^ The Atchison* Jewell County and Western Railroad Company was a Kansas incorporation of July 5* 1S?9#

2

On

December 21* 1898, the date of foreclosure* this company was controlled by the Union Pacific Railway Company through 3 stock ownership. The property was operated from the date it was completed until February 7, 189$, by the Central Branch Union Pacific Railroad Company and its successor, 4 The Central Branch Union Pacific Railway Company* On the date of consolidation the company owned 33#40 miles of line extending from Jamestown to Burr Oak, Kansas, which mileage had been acquired by constructioh in 1080*^ Construction work had been performed by James P* Pomeroy, a contractor, and the road was completed March 15* 1380*u Th© authorized capital©took value, of which $202,400 par value

was$4,000,000 par

was issued for an

unapportloned pert of road constructed ©nd was out stand-* ing on date of sale*

The company el so issued $542,000

par value first-mortgage 6 per cent bond© at per for an 7 unapportioned part of road constructed. These bonds were ^

t }

t

? « f

40 Valuation Reports 556* p* 4°7. Ibid.» p. 557* Idem* Idem. j»wBU idem*

also outstanding on data of aale.^

The total stocks and

bonds issued war© recorded in the road and equipment account as being the original cost of constructing the road#** A condensed summary* of the income accounts for the period February 1, I860, to December, 1898, shows the following:

railway tax accruals, #2,515.88; railway operat­

ing revenues, #11,317*17; railway operating expenses, #21,167,03; non-operating income, #601,056.42; deductions from gross income, #588,030.

Met income on date of fore*

closure was #660.68* The Hooka County Railroad Company was incorporated under the general laws of Kansas, March 12, 1885.^

This

company was controlled on August 9, 1909> the date of con-* solidation with The Missouri Pacific Hallway Company (of 1909)* by The Missouri Pacific Hallway Company (of 1880) through stock ownership.

The latter company also operated

tk© property of this company from Mot ember 4, 1885, the 5 date of its completion, to the date of consolidation.. The railroad of this company consisted of 18.25 miles of line extending from Alton to Stockton, Kansas, which line was acquired by construction.^

This mileage was con­

structed by The Missouri Pacific Railway Company (of 1880), capital stock and funded debt being issued in payment. 40 Valuation Reports. 557. ? Idem. ? a s . 4 \

341 The capital stock authorized, was #500,000 par value*

This was issued in exchange for the following con­

siderations:

unapportioned part of road constructed,

#440,000; in exchange for an equal par value of Rooks county bonds charged to investment in road and equipment, 180,000*

All of this stock was outstanding on date of con­

solidation, at which time #60,000 was exchanged for stock of the successor corporation and #440,000 was canceled on sal© of the property**-

The company Issued fir at-mortgage

6 per cent bonds aggregating #275*000 per value in con­ sideration for an unapportioned part of road constructed* The entire amount Issued was assumed by The Missouri Faoific Railway Company (of 1909) in the consolidation* The investment in road, including land, on date of consolidation, is stated in the books as $775,000, this being the total of the stock and funded debt issued* equipment was owned*

Ho

The outlay for construction of the

property as recorded ih the accounts of The Missouri Pac­ ific Hallway Company (of I860) was $193,912*99.*^ The Heva&a and Minden Railway Company of Kansas was a Kansas incorporation of December 14, 1885*4

The

Missouri Pacific Hallway Company (of 1880) controlled the pK>perty of this company on August 9, 1909, the date of consolidation, through stock ownership* i i i

4

40 Valuation Reports 558. Idem* fSVm* xfria** p* 407 *

The latter

342 company also operated tb© carrier from the date of its completion, August 1, 1886, to the date of consolidation.*** The railroad owned consisted of 41.15 miles extending from a connection with The Nevada and Minden Railway Company, a Missouri corporation, at the Missouri-Kansas border to Chetopa, Kansas, which mileage was acquired by construction* The construction work was performed by the forces of The Missouri Pacific Railway Company (of I860) All of the authorized capital stock, $675,000 par value, was issued to The Missouri Pacific Railway Company (of 1880) in payment for the property*

The Mis­

souri Pacific Railway Company (of 1880} recorded expend­ itures of $502,036.72

constructing the property of this

company*^ The Kansas City .and Southwestern Railway Company was incorporated under the general laws of Kansas, December 24, 1864^

The company was controlled on August 9, 1909,

the date of consolidation, by The Missouri Pacific Railway Company {of 1880} through stock ownership.

The property

waa operated by The Missouri Pacific Hallway Company (of 1880} from December 1, 1866, the date it was acquired, to the date of consolidation*

It consisted of 27 miles of

line extending from the Missouri-Kansas state line to Paola, Kansas, which was acquired by construction* i ? 1 4

4° Valuation Reporta 559. Idem* Idem. Ibid:** p. 407*

The construction

343 work was performed under contract by vu V. McCracken and Company*3" The authorized capital stock was #700,000 par value, of which #26?,000 par value was issued.

Of the

total issued, $30,000 par value was given in exchange at par for $30,000 par value of township and city bonds.

The re­

mainder, #246,000 par value, was issued to the contractor in part consideration for construction of the property. Records of The Missouri Pacific Railway Company (of 1880) show recorded money outlay of #375,675.30 for constructing the property of this company, including the property of the Kansas city and Southwestern Railway Company of Missouri, 20.70 miles, the amount® not separable.

2

The Fort Scott Central Railway Company, incor­ porated in Kansas under articles of consolidation dated ^uly 20, 1891,^ was controlled on August 9# 1909, the date of con­ solidation, by The Missouri Pacific Railway Company (of 1880) through stock ownership. the property or placed

The latter company also operated

of thiscompanyfrom the

date it wasacquired

in operation to the date of consolidation#^

The

railroad owned by the company in Kansas and Missouri aggre­ gated 83.65 miles.

Its main line® extended from Fort Scott,

Kansas to Rich Hill, Missouri, from Fort Soott to Cornell, Kansas, and included a belt line v^lthia the corporate limits - 40 Valuation Report® 559. I ibid,,

, iViS.,

p. 407.

4

p

TE H ..

. 561.

344 of fort Scott, Kansas*

Branch lines extended from Tebb

City to Mears Mine* Missouri, and from 1 ebb City to Orinogo, 1 Missouri# Of the road owned by the company on date of con­ solidation* it had acquired 26*27 miles from Th© Fort Scott & Eastern Hallway Company* 26.0? miles from The Fort Scott & Southern Railway Company, ©nd 3-91 miles from The Fort Scott Belt Terminal Railway Company*

The mileage from

Webb City to Bears Mine, Missouri, and from Webb City to Orinogo, Missouri, 26*60 miles, was constructed under the charter of this company by The Missouri Pacific Hallway Company {of 16$ 0)* ^ The Fort Scott. & Eastern Hallway Company was incorparsted under the laws of Kansas, October 12, 1069*

%

This

company was controlled on August 1, 1091» the date of con­ solidation, by The Missouri Pacific Railway Company (of I860) through ©took ownership#

The property was ©Iso operated by

the seme company from the date it was placed in operation 4 to the date of consolidation* Cuy Phillips, an officer of The Missouri Pacific Railway Company {of 1880), accepted a contract to construct the 26*27 miles of road owned by this company on date of consolidation*

The Missouri Pacific

Hallway Company (of 1680) advanced funds to the contractor for th© construction of the property of this company ©nd i

40 Valuation Henorts 361*

|

Ibtf.» p7

552*

? p M > » P* 4074

SZ&»

P* 563.

345 received in liquidation of auch advances its stock and bonds* The authorised capital stock was #2,700,000 par value* of which §394*000 par value was issued at par to Guy Phillips for an unapportioned part of road constructed* All of tlx© stock was outstanding on date of consolidation and was exchanged for $525*300 par value of capital stock of Th© Fort Scott Central Bailway C o m p a n y T h i s company also Issued $394,000 par value of first-mortgage 5 per dent bonds at par to Guy Phillips for an unapportioned part of road constructed*

These bonds were assumed by The Fort Scott

Central Railway Company at the date of consolidation*

2

The records of The Missouri Pacific Hallway Com­ pany (of 1880} show a recorded money outlay of #389,140*92 for the construction of the property*^ The Fort Scott & Southern Railway Company was incorporated in Kansas, October 12* 1889*^

The company was

controlled on August 1, 1891* the date of consolidation* by The Missouri Pacific Hallway Company (of 1880) through stock ownership*

This company was operated by The Missouri Pacific

Hailway Company (of 1880) from the date it was placed in 5 operation to date of consolidation* On date of consoli­ dation the company owned 26*87 miles of railroad in Kansas* This road extended from Fort Seott to Cornell and was acquir­ ed under a construction contract with Guy Phillips* an | i

40 Valuation Reports. 563* Idem.

Ibid** p* 407* 5 M I * , P* 563*

i

346 officer of The Missouri Pacific Hallway Company (of 188G). Forces of The Missouri Pacific Railway company (of 1880) did th© construction5 it advanced the funds to the contractor and received in liquidation of such advances the ©took and bonds of the Fort Scott & Southern*^ Guy Phillips received #363,500 par value of th® #3 »O0G*GQO authorized capital stock*

This stock was out­

standing on date of consolidation and was exchanged for #511,300 par value of stock of The Fort Soott Central Rail­ way Company*2

This company issued #383,000 par value of

first-mortgag© 5 p©r cent bonds at par to Guy Phillips for an unapportioned part of road constructed#

These bonds

were assumed by The Fort Scott Central Hallway Company at the date of consolidation.^

The records of The Missouri

Pacific Hallway Company (of 1880) show a recorded money out­ lay of #389 ,452*28 for construction of the property The Fort Scott Belt Terminal. Railway Company was incorporated under the laws of Kansas, October 12, 1889*** Th© company was controlled on August 1, 1891, the date of consolidation, by Th© Missouri Pacific Beilway Company (of I860) through stock ownership.

It was operated by the

above company from the date it was placed in operation to th© date of consolidation.

Th© property consisted of a belt

line 3.91 miles In length In Fort Soott, Kansas, which 1

40 Valuation Reports 563* I XbidV, pj 5"S4* ? Him. t Idem. 5 M . , p. 407,

347 property was acquired by construction.^

The construction

work was performed by forces of The Missouri Pacific Rail­ way Company (of 1880) , which advanced funds to the con­ tractor, Guy' Phillips, an officer of the above company, for the construction of the property of this company*

He re­

ceived in liquidation of such advances the stock and bonds of this company* The authorized capital stock was #2,000,000, of which #195,500 par vHue was issued at par to Guy Phillips as part consideration for construction*

This stock was out­

standing on date of consolidation and was exchanged for #76,200 par value of stock of The Fort Scott Central Rail­ way Company*

This company issued #195,000 par value of

first-mortgage 5 per cent- bonds to Guy Phillips for an unapportioned part of road constructed.

These bonds were

assumed by The Fort Scott Central Railway Company at date of consolidation.^ Th® records of The Missouri Pacific Railway Com­ pany (of I860) show a recorded money outlay of #202,594*06 for the construction of the property of this company*^ The Kanocolis and Kansas Central Railway Company was incorporated in Kansas, October 25, 1886, and was con­ trolled on August 9, 1909, the date of consolidation, by Th® Missouri Pacific Hallway Company (of 1880) through i ? 3

40 Valuation Reports 564. Idem. X'Si'd.* p.

348 ©tack ownerships

The property was operated

lay

The Mis­

souri Pacific Hallway Company {of 1880) from December 28, 188?, the date of its completion* to the date of consoli­ dation*

The railroad owned on date of consolidation con­

sisted of 14*16 miles of line extending from Geneseo to Kanopoli©, Kansas, which mileage was acquired by construc­ tion performed under contract by H* M« Beatty*^ The charter authorised an issue of #10,000,000 par value ©took*

Of this amount, #300,000 was issued for

th© following considerationsi un&pparttoned part of road constructed, #26$,000$ #25,000 par value bonds of Empire township, #25,000; ©nd bonds of the city of Kanopolis, #10,000#

Of the total issued, #265,000 were canceled in

th© consolidation, end 135,000 were exchanged for stock of the successor corporation*

The company issued first-

mortgage 6 per cent bonds of #225,000 par value in part consideration for road constructed, all of which were assumed by The Missouri Fee if lo Hallway Company (of 1880} in th© 3 consolidation* The Missouri Pacific Railway Company (of 1880) recorded #124,484*78 in its accounts as th© outlay to create th© property of this company*

This amount was advanced to

th© contractor for his construction of th© property*

Th©

contractor turned over to Th© Missouri Pacific Hallway 1

40 Valuation Reports 407. 565#

f ibi'a'::"57'T617 JSs*

349 Company (of 1880) th© stock and bonds h© had received for the construction of th© road, in payment of the advances 1 made by that company* The Kansas Southwestern Hallway Company* a Kansas incorporation of November 26* 1886, was controlled on Aug­ ust 9, 1909, the date of consolidation, by The Missouri Pac­ ific Hailway Company (of 1880), through stock ownership*^ Th© above company also operated th© property of this com­ pany from the date it was put into operation, December 13, 188?, to the date of consolidation*

On the date of consolt-

datioh th© company owned 20*09 miles of railroad extending from Olcott to Inks, Kansas*

During the year 188? th© com­

pany acquired by construction 24*91 miles of road from Oloott to the ©nd of track west of luka, Kansas#

The con­

struction work was performed by th© Fii&gersld-Eallory Construction Company*

During th© year 1902, 4*82 miles of 3 roed at the end of track west of luka were ©b&ndoaed* The authorized capital stock was #12,600,000 par value*

Of this amount, 1397,440 par value was issued:

#339,940 to Fitzgerald-Mallory Construction Company for unapportioned part of road constructed, and #57,500 par value for county ©nd township bonds* ered to th© Construction Company.^

These bond a were deliv­

Th© company also issued

to the company #372,000 per value of first-mortgage 6 per i f f

40 Valuation Reports 566. Ibid.* p. 408* Ibid.# p« 566#

*■ 13ST.

350 cent bonds, as part consideration for road constructed. These bond© were outstanding at date of consolidation and were assumed by The Missouri Pacific Railway Company {of 1909 h 1 The property of the company was operated from the date it was placed in operation, December 13, 1SS7, to the date of consolidation by The Missouri Pacific Railway Com­ pany (of 1880)*^ The LeBoy and Oaney Talley Air Libe Rail Road Company * a Kansas incorporation of Fun© 10, 1885,^ was con­ trolled on August 9# 1909, the date of consolidation, by The Missouri Pacific Hallway Company {of 1880} through stock ownership*

The above company also operated the prop­

erty of this company from the date It was placed in opera­ tion to the date of consolidation*^ The railroad owned consisted of 51*78 miles of line from Roper to Peru, Kansas, which mileage had been 5 acquired by construction* The road was completed and put into operation in two sections:

From Eoper to Elk City,

Kansas, 29*98 miles, completed December 21,1886; and from Elk City to Peru, Kansas, 21*80 miles, completed May 4, 188?* Th© construction work was performed by Warren H* Loss ©nd by Simmons ©nd S i d e H , contractors* 1 t 1

i | 0

40 Valuation Reports 566* Ibid.* p, 5o77 lb id *, p; 4 0 8 Ibid** p* 567* Mem* Idem. *

6

351 Th© authorized capital stock was #1,000,000 par value, of which #480,000 par value was Issued*

Of th© total

amount issued, the contractors received #360,000 for part consideration of road constructed, #120,000 par value was exchanged for township bonds, the bonds being delivered to th© contractors as partial consideration for construction of road.

Of the total issued, $360,000 were canceled in

the consolidation of the property and #120,000 were ex­ changed for stock of the successor corporation*

This com­

pany issued #520,000 par value of first-mortgage 5 par cent bonds to the contractor® for an unapportioned part of road constructed*

These bonds were all outstanding at date of

consolidation and were assumed by The Missouri Pacific Rail­ way Company {of 1909) The investment in road and equipment of th© com­ pany, including land, on date of consolidation was stated in its book® as $1,000,000 for original construction; this we® the total of the stocks and bonds issued*

The Missouri

Paoiflo Railway Company (of 1880) recorded In its accounts money outlay of #71,468*27 in connection with the eoastructlon of the road of this company*

2

The Kansas and Arkansas Valley Railroad Company was incorporated under th© general lews of Kansas, November 13, 1888,^ and was controlled by the St# Louis, Iron Moun­ tain and Southern Railway Company on Fsnuary 10, 1890, th©

o 4® Valuation Reports 567* Z Ibi& *» p V 5M . 3

Xbi 1910.^ * ? >

4

40 Valuation Reports 463# Mem# Reconstruction Finance Corporation, Railroad Division, Report on the Missouri Pacific Railroad System, p. 57* October, 1935# 40 Valuation Reports 464 #

355 St. Louis"San Franc1boo He ilway Company

1

The St* Louis-San Francisco Railway Company holds a charter from the state of Missouri, and was incorporated August 24* 1916, for a period of 900 years.

2

The purpose for which the Frisco, by which name this property is commonly known, was incorporated was to purchase the lines of railroad of the 3t* Louis and San Francisco Railroad Company and the franchises and property appertaining thereto,

This purchase was made September 15»

1916* pursuant to and for the promotion of the provisions of the plan and agreement dated Hereafter 1, 1915, for th© reorganization of the

company*^

Th® St* Louis and San Francisco Railway Company was incorporated September 10, 1B76, under the laws of Missouri*

In 1B9Q control of the company was acquired by

th© Atchison, Topeka and Santa fe Rail Road Company; but, on December 24, 1693, as © result of its failure to pay interest on Its consolidated mortgage bonds, receivers were appointed for th© company*

A committee of consolidated

mortgage bondholders, those held In the interests of the Atchison, Topeka and Santa Fe Rail Road Company not being represented, was formed; this committee, after e series of negotiations with the latter company (whioh, in the mean* time, had been succeeded by the Atchison, Topeka and Santa ^ ? 3

41 Valuation Reports 139* As of June 30, 1916* Ibid.. P. 301. idem.

356

Fe Hallway Company), approved a plan dated April 21, 1696, for the reorganization of the company, independent of the Atchison, Topeka and Santa F© Hallway Company.

Under this

plan, the St. Louis and San 'Francisco Railroad Company was formed, and th© franchises and property of the St* Louis and Ban'.Francisco Railway Company wer© sold at public auction under foreclosure of its consolidated mortgage, on June 27, 1696, to a purchasing committee*

Th© purchasing

committee conveyed such franchises and property to th© at. Louis and San Francisco Railroad Company on June 30, 1696, and the latter commenced operations of the property on July 1, 1696*^

la 1903 th© Chicago, Hock Island and Pac­

ific Hallway Company purchased a majority of th© outstand­ ing capital stock*

In December, 1909* th© stock held by the

latter we© sold to B. F* Yoakum and associates who controll­ ed th© property at the time it was taken over by receivers on May 27, 1913.2 The receivership proceedings, instituted by James Campbell of the Horth .American Company, holder of e shortterra note of th© company, resulted In a sale of the property at foreclosure on July 19, 1916, to B* B. Finer and W. P. Phillips, representing the reorganization managers, who assigned their bid and conveyed the property to th© Frisco on September 15, 1916*^ I ^ 3

W- Valuation Reports PP* 459-400. Ibid., p. 43B« Idem.

357

Th© corporate history of the Frisco properties in Kansas is given in the following table, which shows th© names of th© predecessor corporations, the respective dates of incorporetion, the immediately succeeding corporation, and the manner of succession*

Reference to each of the

corporations is made in the last column by its respective number shown ih the first column.

Table 12 Kansas Incorporations of th© St* Louis-Sen Francisco Bailway Company^ HO.

HAKE

INCORPORATION

1.

St. Louls-San 'Francisco Railwey Co&pany *

Under the general laws of Missouri, Aug* 24, 1916*

2.

Th© Missouri and West­ ern Railway Company.

Under general lews of Missouri and Kansas, Mar* 22, 1875, and Mar. 19, 1875, respec­ tively.

Property in Kansas sold to St* Louis and San Francisoo Railway Com­ pany, July 29, 1879*

3.

Oswego and State Line Railroad Company.

Under general laws of Kansas, Feb, 16, 18?5*

Consolidated with Th© Pierce City and Kansas Railroad Company to form 2, Mar* 6, 1875*

4, Memphis, Carthage and Northwestern Railroad Company.

Under general laws of Missouri and Kansas, Apr, 13, 1872, and Apr, 12, 1872, respectively.

Bold to 2, Feb, 7, 1877*

5. The State Line, Oswego and Southern Kansas Railway*

Under general laws of Kansas, Apr, 5» 1872.

Consolidated with Memphis, Carthage and Northwestern Railroad Company (Missouri) to form 4, Apr, 12, 1872*

6*

Joplin Railway Company.

Under general laws of Missouri and Kansas, Feb* 25. 1882, and Jfeb* 23, 1882, respectively.

Property in Kansas sold to­ st, Louis and San Fran- cisco Railway company, March 27, 1882*

?*

Joplin and Galena Rail­ way Company (Kansas).

Under general laws of Kansaa , Sept, 28, 1880,

Consolidated with Joplin and Galena Railway Company (Missouri) and .Joplin. Railroad Company (Missouri and Kansas), to form 6, Feb« 23, 1882,

8.

Joplin Railroad Company (Missouri and Kansas)*

Under general laws of Missouri and Kansas, Feb* 23, 1876, and Feb, 25, 1876, respectively.

Consolidated with 7. hhd lia and Galena Railway Com­ psay (Miss ouri), to for® 6, Feb* 23* 1882.

1 41 Valaatlon Reports 302*304.

SUCCESSION

359 NO.

N/:ME

9* Joplin Railroad Company (Kansas)* 10

, St*

Louis, Wichita and Western Railway Company,

11. Kansas City and South­

western Railroad Company*

IMCORPOHATIOH

SUCCESSIGH

Under general laws of Kansas, Dei* 22, 1875*

Consolidated with Joplin Railroad to form 8, fed* 23, 1876*

Under general laws of Kansas, March 21, 1879.

Sold to St* Louis and San Francisco Railway Company, Mar* 28, 1882#-

Under statutes of Kan­ sas, Mar# 2?» 1834*

Sold to st#. Louis and San Francisco Railroad Company, Apr * 91 1897 *

. 12.

Th© Kansas Midiand Railroad Company.

Under lews of Kansas, Sept* 2$, 1900*

Sold to St# Louis and San franclsoo Railroad Company, Oct* 1, 1900*

13*

The Kansas Midland Railway Company.*

Under laws of Kansas, Feb* 8, 1886*

Sold to 12, Get* 1, .1900#

360 The Missouri and Western Railway Company was incorporated under th© laws of Missouri and Kansas by the consolidation of the Piero© City and Kansas Railroad Company, a Missouri corporation, and the Oswego and State line Railroad Company, a Kansas corporation#

Articles of

consolidation dated March 6, 1375, were filed in Missouri on March 22, 1875, and In Kansas on March 19, 1875, no period of existence being stated# The two underlying companies named above were incorporated by Joseph seligman and Josiah Macy, Jr#, to assume the franchises and property of th© Memphis, Carthage and northwestern Railroad Company, which had been purchased by Seligmaa and taaoy at foreclosure*

Seligman

and Maoy represented three Mew York banking housest J* & W# Seligman Sc Company, Josiah Ms cy and Sons Sc Company, and Perkins, Livington and Post.

These houses controlled the o corporation during its entire existence * In July, 1879, th© company ©old its franchises

and property to the St# Louis and San Francisco Railway Company.

Th© property was conveyed by two deeds:

that in

Missouri by a deed dated July 26, 1879, and that in Kansas by a deed dated July 29, 1879*

The purchaser took formal

possession of the property on August 1, 1S?9. 1 ? *

41 valuation Reports 500. Ibid*, p. 501. Idem.

3

361 On date of sale th© company owned about 82 miles of railroad, of which about 73 miles were main-line trackage and about 9 miles were branch-line.

The main line extended from

'Pierce Oity, Missouri, to Oswego, Kansas, and the branch line 1 from Oronogo Junction, Missouri, to Joplin, Missouri* Of this mileage, 29.83 lay In Kansas.

2

The company had origi­

nally acquired 46 miles of completed road and 2? miles of graded roadbed from Joseph Seligman and Francis H. Macy, which they had purchased from the Memphis, Carthage and north­ western Railroad Company#

The 27 miles of uncompleted road

was finished by the company. 3 branch line#

It also constructed 9 miles of

The deed executed by Seligsaen and Kacy, conveying the property of the Memphis, Carthage and Northwestern Rail­ road Company, named the following considerations to be paid 4 by the Missouri Western* #

500,000 Ml6t?00 63,300 1,000,000

in in in in

7 per cent preferred stock of the company common stock of th© company cash and note© a demand note of the company

Ho information has been obtained to show that those considerations were actually paid* As compensation for the franchises and property, the St# Louis and San Francisco Railway Company Issued #1,100,000 of its first-mortgage bonds, Missouri and Western 1 2 ~ r

*

41 Valuation Reports. 501. ^ , Board' 0?'Railroad Commissioners, Kansas, Fourth ininual Report, p* 273 (1886) 41 Valuation Reports 501 * Idem*

362 division, to the Missouri end western Railway Company#

In

addition to the transfer of franchises and property, th© Missouri and Western Hallway Company paid #44,000 in cash to the St* Louis and San Francisco Hallway Company,^

The

disposition made by th© Missouri and Western Railway Com­ pany of the bonds so received could not be ascertained, but its franchises and property were delivered to th© St, Louis end San Francisco Railway Company free from all claims ©nd liabilities on August 1, 1879.2 Th© Oswego ahd State Lin© Railroad Company was incorporated February 16, 1875, under th© laws of Kansas for a period of 100 years,^

The Pierce City and Kansas

Railroad Company was incorporated in Missouri*^ porations owned no physical property.

These cor­

They were incorporat­

ed by Joseph Seligm&n and Josiah M©oy, Jr., to take over th© property and franchises of th© Memphis, Carthage and north­ western Railroad Company, which had been sold under fore­ closure « On March 6, 1875, this company and the Pierce City and Kansas Railroad Company were consolidated to form The Missouri and Western Railway Company, and the franchises and property before mentioned were conveyed direct to th© last-named company,*^

The authorized capital stock of this

company was # 500 ,000 , but no records are available to show how much capital stock, if any, was actually 3* 41 Taluation Reports 302, ? Idem* 3 TSia,, p, 503. 4 ibia * p. 502. l XtOT I p. 503*

i s s u e d ,

^

363 The Memphis. Carthage and Hortirwestern Railroad Company was a consolidation of the Memphis, Carthage and northwestern, a Missouri corporation, hereinafter called th® Memphis, Carthage and Northwestern Railroad Company (Missouri), and The state Line, Oswego and Southern Kan­ sas Hallway Company*^

Articles of consolidation, dated

April 8, 18?2, were filed in Kansas on April 12, 1872, and in Missouri on April 13, 1$72*2 Th® company was initially controlled by L» P* Cunningham of Carthage, Missouri, ©nd certain of his associates*

On November 1, 1872, there was a default upon

the payment of interest on the company*® first-mortgage bonds; on January 4, 1875, the trustees under the mortgage, in accordance with the terms thereof, conveyed the company*a property and franchises to Joseph Sellgman and Josiah M’acy, Jr*, these men being the legal representatives of the three 3 banking houses previously mentioned, which owned all the 4 outstanding bonds* On February 7, 1877, Joseph Seligman and Francis H# Maoy, the legal heir of Josiah Macy, Jr*, conveyed such franchises and property to The Missouri and Western Railway Company, which had been organized by those Interests to deceive the property*^ On th© date of sale th© company owned about 46 miles of completed railroad extending from Pierce City, 1

41 Value tIon Re ports 302.

2

i b i d .# p .

f Z

See p. 360. 41 Valuation Reports 503*

5

MSB*

£ q

Y *

364

Missouri, to Brownsville* Kansas* of which 26 miles had been purchased from the Memphis, Carthage and northwestern Bailroad Company (Missouri) and 20 miles had been constructed by th© company*

in addition* it had constructed a roadbed

and built bridges from Brownsville to Oswego, Kansas* about 27 miles, but had not laid the track thereon.**’

The State Bine, Oswego and Southern Kansas Hell* way Company was incorporated April 5, 1S72, under the laws 2

of Kansas,' for a period of 99 years.

^

This company did

not keep a set of general books, and no property was owned by it.

On April 8, 1872, three days after it was incor­

porated, it entered into an agreement of consolidation with th© Memphis, Carthage and Northwestern Railroad Company (Missouri) to form a new company having the same name as th® latter.

Articles of consolidation were filed in Kansas on

April 12, 1872, and in Missouri on April 13* 1872.

This

company1© authorised "Capital stock was #1,000,000, but the records reviewed do not show how much stock was actually issued, if any,1* The Joplin Bailway Company was incorporated uhder th© laws of Milssour i ©nd Kansas by th® consolidation of the Joplin Railroad Company and two other companies, each having the m m © of Joplin and Galena Railway Company:

one was incor

porated in Missouri and the other in Kansas, end they are 1 41 Valuation Report© 303. 2 2:bidV. p . 3 o £V , S S * > p* 505. 4 idem.

365

hereinafter called the Joplin and Galena Railway company (tisaourl) and the Joplin end Galena Railway Company (Kansas), 1 respectively* Articles of consolidation, dated December 28, 1881, were filed in Missouri on February 25* 1882, and in Kansas on February 23, 1882, the authorised period of ex* lstenee being 99 y e a r s T h e company was controlled by the at* Louis and San Francisco Railway Company*

It did

not keep a set of general books, all its transactions hav­ ing been recorded on the books of the latter, from which source the information contained herein has been obtained*

3

On torch 1?, 1882, and March 27, 1882, the com­ pany executed deeds conveying its property, right®, and franchises in Missouri and Kansas respectively to the St* Louis and San Francisco Railway Company*

At that time it

owned about 50 miles of line of which about 44 Biles were main-line and about 6 miles were branch-line trackage*

The

main line extended from Girard, Kansas, to Joplin, Missouri*^ On© branch line extended from Litchfield Junction to Litch­ field, Kansas, about 3 miles; the other was a belt line with­ in the city of Joplin, Missouri, about 3 Bile® in length. ^ All of the 50 miles of road owned by th© Joplin Railway Company on the date of its corporate demise had been acquired by consolidation#

Of the total, it had

acquired 42 miles from the Joplin Railroad Company, 6 miles *

41 Valuation Reports 509#

* Idem# b Tblg*. pp. 509-510. 5 BaCT.. p. 510.

366

from the Joplin end Galena Bailway Company (Missouri) and 2 miles from the Joplin and Galena Hallway Company (KansasJ.1 The Joplin Hallway Company financed the acquisition of its property by the assumption of the liabilities of the companies forming it, and by the issuance of it© capital stock in exchange for the capital stock of the predecessor companies*

2

The property of the Joplin Hallway

Company was operated from the beginning to the date of sale by the St* Louis and San Francisco Railway Company* The Joplin and Galena Hallway Company (Kansas) was incorporated September 23, 1330, under the laws of Kansas. 3 Til© company was organised and controlled by the St* Louis and San Francisco Bailway Company*

It did not keep a

set of general books, all its transactions having been re-* corded on the books

ofthelatter, from whichsource

formation herein has beensecured*^

On December

the in­

28, 1881,

the Joplin and Galena Bailway Company (Missouri), the Joplin and Galena Hallway Company (Kansas), and the Joplin Rail­ road Company consolidated to form the Joplin Railway Company.-* On date of consolidation, the Joplin and Galena Railway Company (Kansas) owned about 2 miles of railroad located entirely in Kansas, extending from a point on the boundary line between Kansas and Missouri in a southwesterly i \

41 Valuation Reports $10* Idem *

7

P* 302.

4

T S 1 X , p* 511.

Idem»

direction to Galena*

The property was constructed between

May, 1381, and October, 1881, by the forces of the St. Louis a n d San Francisco Hallway Company, and was placed in operation during the last-named month by the latter.^ The amount of capital stock authorised was #35,000, all of which was issued to the St* Louis and San Francisco Hallway Comp&ny without consideration.

2

The necessary

funds for the construction of the property were furnished by the St* Louis e n d San Francisco Bailway Company.

That

company advanced 172,611*14 for construction of the prop­ erty of this company and the Joplin and Galena Railway Com­ pany (Missouri), but no separation of that amount es between the two companies was made*

Those advances were assumed in

the consolidation b y the Joplin Hallway Company*

3

The Jonlin Railroad Company was incorporated under the laws of Missouri and Kansas b y the consolidation of the Joplin Railroad (Missouri) and the Joplin Railroad Company, a Kansas corporation, hereinafter called the Joplin Rail­ road Company (Kansas)*^

Articles of consolidation, dated

February 22, 1676, were filed in Missouri on February 23, 18?6, and in Kansas on February 2$, 1876.

B y virtue of the

consolidation, the Joplin Railroad Company came into posses­ sion of ell the powers, rights, privileges, and franchise©

i ?

41 Valuation Report© 511* Idem*

?

irai., p * 5i2.

368 of the consolidating companies, and had a corporate life of 99 years.^ The company was initially controlled b y John B. Sergeant and B» R. Moffat of Joplin, Missouri, but on May

26, 1879* control passed to the St* Louis and San Francisco Railway Company through purchase of a majority of the out­ standing capital stock.

After M a y 26, 1879, the property

of the company was operated b y the St* Louis and San Francisco Railway Company as a part of its lines*

2

The books

of the company were discontinued on that date, all its trans­ actions being recorded on the books of the St. Louis and San Francisco Railway Company thereafter. O n December 28, 1881, the company consolidated with th© Joplin a n d Galena Railway Company {Missouri), and the Joplin and Galena Railway Company (Kansas), to form the Joplin Railway Company.

This consolidation was msde in

the interest of th© St. Louis and San Francisco Railway Company. On the date of consolidation the company owned about 42 miles of railroad, of which about 26 miles were main-line and about 6 miles were branch-line trsckag©.

Th©

m a i n line extended from Girard, Kansas to Joplin, Missouri, and the branch lines from Litchfield Junction to Litchfield, about 3 m i l e s ; in addition, there was a belt line Ih the city of Joplin, Missouri, about 3 mile & in length#

1

2

41 Valuation Reporta 512. m a . . p* 513. ..

All of

369 this mileage had been acquired by construction. T h e Joplin Railroad Company acquired $7,500 par value of bonds issued b y Baker township, and 116,500 par value of bonds issued b y Crawford township, both townships being in Orawford county, Kansas, in exchange for which It Issued an equal par value of its capital stock. township bonds were sold for #3,72$,

The Baker

and the Orawford town­

ship bonds for 18,200.^ The Joplin Railroad Company (Kansas) was incor­ porated December 22, 1875, under the laws of th® state of Kansas*

2

The company was incorporated by John B. Sergeant

and B. R. Moffat of Joplin, Missouri; but, aside from per­ fecting an organization, nothing was ever done, physical property was owned*

and no

On February 22, 1876, it con­

solidated w i t h the Joplin Railroad (Missouri) to form a new company, the Joplin Railroad Company (Missouri and Kansas). The amount of capital stock authorized by the charter was

#300,000.3 The St* Louis. Wlohita and Western Railway Com­ pany was incorporated March 21, 1879, under th© laws of Kansas and under its charter was to enjoy a perpetual existence.^

Th© company did not keep a set of general books,

all its transactions having been recorded on the books of the St. Louis and San Francisco Railway Company.

h 2 ?

Ibia>t p, 302.

4

Idem.

41 Taluatlon Reports 516.

Ibid.. P- 516.

During

370 Ita entire existence it was controlled by the latter.

On

March 2S, 1882, the company executed a deed conveying its p r o p e r t y , rights, end franchises to the St. Louis and San Francisco Hailway Company.

On that date it owned about 142

miles of line located entirely in Kansas, extending from Oswego to Wichita. construction,

2

This mileage had ell been acquired by

tinder a construction contract of July 26,

1879* the St. Louis, Wichita and Western Railway Cai^sny issued its securities to the St. Louis and San Francisco Railway Company, in payment for the construction of its 3 property, as follows: Capital stock First-mortgage bonds Income bonds Total

#

700,000 2,000,000 750.000

13,450,000

In addition, it delivered to th© St. Louis and Sen Francisco Railway Company the following municipal end county bonds,

4

which It had acquired in exchange for equal

amounts In par value of its capital stock:

Issued by Townships of; Cherry, Kansas Twin Groves, Kansas Little Walnut, Kansas Spring, Kansas A ugust a , Kansas

Par value

| 23,000 15,000 17,000 18,000

23,000

o t

43* Valuation Reports 517. Idem.

4

i d e m . The names of the counties in v.’hloh the various townships were located was not recorded.

371 Bruno, Kansas Mount Pleasant, Kansas Mound Valley, Kansas City of Augusta, Kansas County of Vilson, Kansas

IB,000 10,000 20,000 13,000 100,000

Total

#239,000

To retain control of th© comp a n y , the St. Louis and San Francisco Railway Company deposited the

1700,000

of capital stock under © trust agreement, against which was issued an equal amount of certificates for stock held in trust#***

Th© St* Louis and San Francisco Railway Company

then sold such stock-trust certificates and the #2,000,000 of first-mortgage bonds for #1,523,702*11*^

it also sold

all the municipal bonds, except |15,000 par value issued b y the city of Augusta, Kansas, for

#184,373*$4; an60,881*14 due the Kansas & Missouri Railroad Com­ pany, which passed with other assets and liabilities to the Kansas City, Fort Scott and Springfield Railroad Com1 pany* Th© property of th© company was leased August 1, 1882, to til© Kansas City, Fort Soott and Gulf Railroad Company for 99900 p®a? value of cap­ ital stock and $1,000 of first-mortgage 30-year 7 per cent bonds, for $1,000* bonds at 50*

The stock was priced at per and the

The bonds were guaranteed both as to prin­

cipal and interest by the Kansas City, Fort Scott and Gulf 1 Railroad Company. From the date of incorporation, ISay 11, 1330, to the date of consolidation, the Rich Hill Railroad Com­ pany issued capital stock and funded debt and incurred-nonnegotisble debt to affiliated companies, as indicated by its records, aggregating $564#639#54 par value, all of which were outstanding on the date of consolidation*

The

authorised capital ©took of the Hioh Hill R§llroa& Company was #400,000 par value, divided into shares of $100 each, and classed as common stock. was issued for cash at par.

Stock of $130,500 par value On January 3, 1888, it was

retired by stock of the Kansas City, Fort Scott and Spring2 field Railroad Company, par for par* The Rich Hill Rail­ road Company issued funded debt of $370,000; these were •first-mortgage, 30-yesr 7

i 41 Faluation Reports 663* Idem.

cent bonds and yielded

416 $190,377*50 cash.

The $370,000 par value, outstanding on

date of consolidation, was assumed by the Kansas City, Fort Scott and Springfield Railroad Company es of January 4, 1 1888. Nonnegotfable debt was incurred to the Kansas City, Fort Scott and Gulf Railroad Company aggregating $14,189.54 to the date of consolidation, all of which was owing on the date of consolidation and was assumed by the Kansas City, Fort Scott and Springfield Railroad Company.

This debt

was incurred on the part of the Rich Hill Railroad for money spent by the Kansas City, Fort Scott and Gulf Railroad in constructing a portion of the company’s property.

2

The property of the Rich Hill Railroad Company was leased to the Kansas City, Fort Scott end Gulf Railroad Company for 999 years from July 1, 1830, and was operated by the lessee from its completion to the date of consoli­ dation.

The less©© paid all taxes and the interest on the

funded debt, agreeing also to pay dividends to the stock­ holders of the company at the same rate as were paid on the common stock of the lessee.

The Kansas City, Fort Scott

and Gulf Railroad Company acquired all of the company’s stock, by the issue of its own stock at per, about the date the road was pieced in operation*

The maintenance by the

lessee of a sinking fund of 1 per cent a year was required by the.lease, this to be invested In the bonds of the lessor for the retireicent of those bonds. o r 3

41 Valuation Reports 663* Ibid., p. 664. X3S.

3

The recorded investment in rcn.d and. equipment the Rich. Hill Railroad-Company at the date ox' consoli­ dation was $564,689*54, all assigned to road, a a- there 1 was no equipment owned.

41 Valuation Reports 664*

Union Pacific Railroad Company The Union Pacific Hailroad Company was incor­ porated 3uly 1, 1B97* in Utah! for the principal purpose of acquiring the property, rights and franchises of The U&ioa Pacific Hallway Company*^*

It also had the power to

acquire the lands and land grants and all rights with re­ spect thereto of that company or of its constituent com­ panies, and to construct, purchase, or otherwise acquire and operate branches, extensions, and connecting or auxil iary lines* The following table shows the names of the Kan­ sas corporations, the respective dates of incorporation, and for each predecessor the date of succession, the immediately succeeding corporation, and the manner of sue cession*

Reference to each of these corporations is made

in the last column by it© respective number shown in the first column*

1 2

2

44 Valuation Reports 96 As of June 36, 19l6V

Table 14 Kansas incorporations of the Union Pacific Hailroad Company^ HO.

1.

HAME

DATE Of XM0QRPQEATXON m KANSAS

Union Pacific Hailroad Company.

General laws of Utah, July 1, 1897*

SUCCESSION

2. The Union Pacific Hallway Company.

Act of Congress approved July 1, 1862, amended July 2, 1864, through articles of consolida­ tion dated January 24, 1680; filed with Dept, of Interior January 26, 1880; In Nebraska, Sept. 20, 1880; in Colorado, August 2, 1880; in Kan­ sas, April 30, I860.

3* The Union Pacific Railroad Company*

Act of Congress approved Consolidated January 24, 1880, with 4 and 5 to July 1, 1862, amended form 2, July 2, 1864*

^4.

Denver Pacific Hallway and Telegraph Company*

5. Kansas Pacific Railway

General laws of Colo­ rado, November 19, 1867,

Consolidated January 24, I860, with 3 and 5 to form 2,

See 6*

Consolidated January 24, 1880, with 3 &n& 4 to form’2,

See ?,

Hama changed to 5 by authority Joint Resolu­ tion of■Congress, approved March 3# 1869*

Special Act of Terri­ torial Legislature of Kansas, August 30,

Hama changed to 6 ©a June 6, 1863*

Company.

6#

Union Pacific Hallway Company, Eastern Division.

7* Leavenworth, Pawnee and Western Hailroad Com** peny.

1855*

^ 44 Valuation Reports 97-99.

Sold under foreclosure after receivership begun Dot* 13, 1893# and con­ veyed in 10 parts from Jan* 22, 1898, to Aug, 9, 1901 to 1,

420

BATE OF IMCORPORATIGH IN KANSAS

moGMmsim Sold under foreclosure after receivership begun October 13, 1893* a M con­ veyed October 4, 1898* to 1.

8*

Omaha end Republican Valley Railway Company*

General laws of Heferaslce and Kansas, through articles of consolida­ tion dated February 3, 188?j filed in Nebraska and Kansas, February 14, 188?*

9*

Blue Valley Railway Company*

General laws of Kansas, Consolidated February 3, through articles of I88?# with 14 to form 8, consolidation dated July 1, 1886; filed Jan­ uary 1, 188?*

10*

The Manhattan and Blue Valley Railroad Gompany,

General laws of Kansas, July 28, 18?9*

Consolidated July 1, 1886* with 12 to form 9* ‘

11,

Manhattan and Korthwestern Railroad Company,

General laws of Kansas, June 2, 1871,

Sold, under foreclosure and conveyed July 15* 1879, to R* 1* Donnell, trustee^who deeded property July 19* 1879* to 1, B» Purcell; conveyed by Purcell and wife July 28, 1879 to 10,

12.

The Marysville and Blue Valley Railroad Com** pany.

General laws of'Kansas* July 5, 1879.

Consolidated.July 1, 1886, with 10 to form 9*

13*

The Union Pacific, Lincoln and Colorado Railurey Company *

General laws of Kansas and Colorado, through articles of consolida­ tion dated August 1* 1888; filed in Kansas* November 5* 1888; in' Colorado, October 6* 1888*

Sold under foreclosure after receivership begun October 13, 1893* and con­ veyed October 4* 1898 to 1,

14* Th® Union Pacific, Lincoln and Colorado Railway Company in Kansas*

General laws of Kansas* June 8* 1888*

Consolidated August 1*. 1888,. with 18 to form 13*

15*

General laws of Kansas, August 12*. 1885*

Capital stocK exchanged for stools: of 14* July 25, 1888*

Salim * Lincoln and Western Railway Com* pany*

421 HO.

NAME

DATE OF INCORPORATION IN KANSAS

smomBXQM

16.

The Lincoln and Colo­ rado Railway Company*

General laws of Kansas, January 8, 188?*

Capital stock exchanged for stock of 14* July 25, 1888.

17*

Oakley and Colby Rai1way Compsny *

General laws of Kansas, November 16, 1885.

capital stock exchanged for stock of 14# July 25, 1888.

18.

The Onion Pacific*, Lincoln end Colorado Railway Company In Colorado.

General laws of Colo­ rado, June 8, 1888.

Consolidated August 1, 1888, with 14 to form 13.

19*

Inaction City and fort Kearney Railway Com­ pany.

General laws of Kansas, June 291 18?!..

Sold under foreclosure after receivership begun October 13, 1893, and con­ veyed May 29# 1899* to 1*

20.

Saline and South West­ ern Railway Company*'

General laws of Kansas, through artielea of con­ solidation dated 'Decem­ ber 21, 1880| filed February 24* 1881#

Sold at foreclosure after receivership begun July 13, 1900, and conveyed Sep­ tember 21, 1900, to ly

21. The Saline and South­ western Railway Com­ pany.

General laws of Kansas, December IS, .1878*

Consolidated December 21, 1S80, with 22.to. form 20,

22. The Kansas and South­ western Railway Com­ pany.

General laws of Kansas, July 15, 1879,

Consolidated December 21, 1880, with 21 to form 20*

23*

Th® Solomon Railroad Company,

General laws of Kansas, August 13, 1877* •

Sold at foreclosure after receivership begun July 21, 1900, and conveyed Sep­ tember 2.1, 19Q0# to- 1.

24*

The Topeka & North* western Railroad Company*

General laws of Kansas, June 9# 1904*

Sold to 1, Kay 30, 1908*

422 The Union Paoif io Railway Company was incor­ porated under an Act of Congress, approved July 1, 1862,^ amended July 2, 1864,

2

through articles of consolidation,

dated January 24, 1880, filed with the Department of the Interior, Washington, D. 0., January 26, 1880; in Neb­ raska September 20, 1880; in Colorado August 2, 1880; and In Kansas April 30, 1880.^

It was a consolidation of

The Union Pacific Hailroad Company, the Kansas Pacific Railway Company, and the Denver Pacific Railway and Tele­

graph Company.

On February 1, 1898, the date of reorgan­

isation, the company controlled through ownership of cap­

ital stock the Junction City and fort Kearney Railway Com­ pany, The Solomon Railroad Company* Kansas incorporations, and the Golden, Boulder and Caribou Railway Company, a Colorado corpora tion.^ Shortly before its property passed

to the Union

Pacific Railroad Company, this company recorded the dis­ posal of nearly all of its investments in stoekf, bonds, etc., by sale under foreclosure proceedings or by court 3 order. The securities so sold included stocks of the following Kansas corporations:

Atchison, Colorado and Pac­

ific Railroad Company; Atchison, Jewel County and Destern Railroad Company; Central Branch Union Pacific Railroad 1 ? ? ; * t

United states Statutes at Large, vol. 12, Unitedsta: tea'la'taiutes' a'i''Laris. vol. 13, 4 4 Vaineti on RepoftsW I Ibid.« c T 1407 Idem.

p. 4^9. p# 356.

423 Company; Kansas Central Railroad Company; Lawrence and Emporia Railroad Company; Omaha and Republican Talley Hallway Company; Saline and South Western Hallway Company; and The Union Pacific, Lincoln and Colorado Railway Company, The property of Th© Union Pacific Railway Com­ pany was acquired by th© Union Pacific Railroad Company under a "Flan and Agreement for the Reorganization of The Union Pacific Railway Company* including its Kansas Pac­ ific Lines", dated October 15, 1895, devised through nego­ tiation between depositing stockholders and bondholders of the company end a committee consisting of Louis Fitzgerald, Jacob H. Sohiff, T* Jefferson Cooli&ge, Jr., Ohaunoy M. Bepew, Marvin Rughitf, and Oliver Ames, 2d,

This plan was

modified in 1896 and was declared operative on June 24# 1897*

It declared amongst other things, that the system

of The Union Pacific Railway Company had become dismembered, and that the main difficulty in effecting a prompt reorgan­ ization of Its affaire was in connection with the secondary liens held by th© United States Government upon certain I portions of th© road, The plan of reorganization provided for the form­ ation of a company which should issue new securities.

The

mortgage debt for which provision was made under the plan was exclusive of certain m©In-line bonds which were held 4k Valuation Reports 100-101*

424 in trust© or sinking funds under mortgages included in the proposed reorganization* under the plan without

'The bonds that were avs liable th© necessity for th© issuance of

new securities were stated to amount, in the aggregate, to * 1 #6,708,85® par value* The plan did not include provision for the collateral-trust obligations of Th© Union Pacific Railway Company, as th© seourities embraced in those trusts were stated to be largely those of companies which had already, by orders of the court mad© in th© original gen­ eral receivership cause or in independent foreclosure proceedings, lost their character as portions of what was distinctively known as

th© Union PacificSystem*

The secu­

rities to be issued by

the new company underthe plan aggre-

getefi $236,000,000.2 Settlement of the affair© of Th© Union Pacific Railway Company was complicated by the secondary lien held by the United States Government on a

part of the property

as a consequence of the issuance of bonds

of the United

States Government as a loan to The Union Pacific Railroad Company and to the Kansas Pacific Railway Company in aid of constructions

first, mileage from Omaha, Mebr&ska, to

a point 5 mile© west of Ogden, Utah, known as the Union Division; and second, mileage from Kansas City, Missouri, to milepost 394 in Kansas, a part of 1

2

44 Valuation Reports 101*

m d — p, lo'a*

whet was known as the

425 Kansas Division* The record© of th© Treasury Department indicate, and the report of the Government directors of The Union Pacific Railway Company to the Secretary of the Interior under date of September 30, 1898, states, %imt #6,303,000 was received as payment on nn indebtedness on #12,890,293*71, that applied to a part of th© so-called Kansas Division#

After July 1, 1899# ®n additional payment of

#1,525#466*50 was mad®, bringing th© total payments on the Kansas Division debt to #7,828,466*50, resulting in a loss to the United States of #5 *061,827* 21 2

By Act of Congress approved July 1, 1862, and 3 4 amended by sets of July 2, 1864* July 3, 1866, and March 5 3, 1869, it was provided that th© Kansas Pacific and th© Union Pacific be granted every alternate section of public lands to the amount of 10 sections per mile on each side of th© constructed road within the limits of 20-miles on each side thereof, including timber thereon but excepting mineral lands (other than coal and iron) not ©old, reserved or otherwise disposed of at the time the line of road was definitely fixed*

Under such grants The Union Pacific Rail­

road Company received 11,464,667*65 ©ores and th© Kansas 6 Pacific Hallway Company 6,273,910*05. The Denver pacific 1 § f 4 1

44 Taluation Report© 102. Ifelteil Stat® ©''Statutes at Lar^e. Waits!''''S'ta^u't©© at"'large. xjhiite! staies Statutga^at Lar&e> UnitecL.^t^t©a .wt,^tut.g.a ffiJLaagft* 44 Valuation Reporta 130V

vol. 12, p. 489* vol. 13, P* 356. vol. 14, P* 79. vol. 15, p. 324.

426 Hailway and Telegraph Company received 622,000 acres also under the laws above cited. 1 A portion of the above acreage was sold by the various companies as follows:

The Union Peoific Hailroad

Company, 1,585,591.31 acres for 17,206,071.84; Kansas Pac­ ific Railway Company, 1,433,435.01 ©ores for #4,996,346.63; The Union Pacific Railway Company, 9,369,481*90 acres for #20,611,914.20*-Union Pacific Railroad Company, 3,248,267*77 acres for 19,158,465.24; and not assignable to a particular company, 3,957,31 ©ores*2 The Isnd-gr&at lends of the Kansas Pacific Rail­ way Company were acquired at foreclosure sale in April, 1898, by the Union Pacific Land Company, a subsidiary of the Union Pacific Hailroad Company which had been organised for that purpose.

Th© considerations given in the acquisition of such

lands were all of th© issued securities of the Union Paoifio Land Company, comprising #100,000 per value of its capital stock and $10,000,000 par value of its funded debt*

3uch se­

curities were Issued to th© Union Pacific Hailroad Company*^ In addition to aids already noted, certain pred­ ecessor companies of the Union Pacific Hailroad Company received, from towns, townships, and counties In Kansas, bonds in exchange for an equal par value of their capital stock.

The names of th© recipients, the donors, and the

o 44 Valuation Reports 130* ? Idem. •* Idem*

427 par value or the bonds received follow;’1 Kansas Pacific Hailway Company Leavenworth County The Manhattan and Blue Valley Hailroad Company Jackson Township Selina, Lincoln and Western Railway Company $ 16,000 Flainville Township Falrview Township 21,000 Lincoln County 70,000 The Lincoln and Colorado Hall­ way Company Wild Hors© Township 17,000 Hal! City Township 10,000 Logan Township, Rooks County 12,000 Logan Township, Sheridan County 18,000 Northampton Township 15,000 6,000 Hiebland Township Solomon Township 15tooo Valley Township 18,000 Kenneth Township 14*000 Junction City and Fort Kearney Hallway Company 100,000 Clay County 100,000 Davis County Lawrence Township 12,000 24,000 Lincoln Township 1,000 Clyde City 20,000 Belleville Township 15,000 Freedom Township The Selina and Southwestern Hallway Company 10,000 Smoky View Township 14,000 Smoky Hill Township Th© Kansas and Southwestern Railway Company 30,000 McPherson Township 2,000 McPherson City Th© Solomon Hailroad Company 100,000 Ottawa County 7,000 Solomon Township The Kansas Central Railroad Company 10,000 Starr Township 15,000 Mill Creek Township Total 1

#250,000 17,000

107,000

125,000

272,000

24,000

32,000 107,000

25.000 #960,000

44 Valuation Reports 131. The counties in which the town­ ships are located were not given*

428 In addition to the above the Junction City and fort Kearney Hallway Company issued to Elk Township, Kan­ sas, |20,100 par value capital stock in exchange for $20,1 000 par value of bonds, The Topeka h Northwestern Hail­ road Company received #5,153 in bonds as a donation and Sharon Springs township, Wallace county, Kansas, donated o flJfCOO in bonds to the ’ Onion Pacific Hailroad Company, The property of this company, except that part extending 5 miles west of Ogden, Utah, leased to th© Central pacific Railroad Company, was operated by its own organ­ ization from the date acquired to October 13, 1893#

From

that dab© to th© date of foreclosure sales, it was operated by receivers.

The successor corporation took over th© main

line for operation on February 1, 1898, and of the remain­ der of the railroad property on April 1, 1898, Of the 1,819*38 miles owned on date of sale, it acquired 1,042,41 miles from The Onion Pacific Railroad Com­ pany, 674#43 miles from the Kansas Pacific Railway Company, and 106 miles from the Denver Pacific Railway and Tele­ graph Company through consolidation,

Th© Chion Pacific

Hallway Company constructed ©bout 10*52 miles and abandoned or reclassified approximately 14 miles of line, A dividend of 6 per cent was declared in 1880; 7 per cent, 1881 to 1883, and 1*75 per cent In 1884*

These 3 dividends totalled #16,619,534.26 and were paid in cash.-'

1 2

3

44 Valuation Resorts 131# Ibi^ #; p/ 129/

SH- .

p*

ui>.

'

429 la the stumer of 1855 the Territorial Legislature of Kansas ©bartered the Leavenworth. Pawnee fe Western Hail­ road Company, with © capital stock of #5,000,000, to con­ struct a railroad "from th© west hank of the Missouri River, in the town of Leavenworth, in Kansas Territory; and from thence west to the town of Fawn©©, or to some point feasible and near to th© government reservation of Fort Riley, with th© privilege of extending the same to the western boundary of the territory," which at that time was located on th© divide in th© Hooky Mountains* Th© company was also given the [email protected] to construct branches "to any point in ©ny county through which the said road may be located;" also a branch to the town of Kiokapoo* For th© above purposes the company could hold a strip of land, "not exceeding one hundred feet In width."

Th©

company was to begin the construction of its road within five years and complete the same within twelve years there­ after.

Also the company "shall determine what kind of

carriages shall be used thereon, and by whom, and in what 1 manner." Th© director© as provided by the charter, were: W* E. Russell, J* Marion Alexander, 3* I>. Lecompte, Amos Rees, James Davies, W* ?. Dyer, Robert Wilson, James Findlay, 1. 3. Wllholt, Edward 11. Dennis, C. H. Grover, Wilburn Chrlstinson, M. P. Hlvely, Charles Hayes and

^

Statutes of Kansas Territory, vol. 1, p. 914 (1855).

430

Cornelius M# Burgess. On November 5, 1861, © treaty was concluded at the Pottawatomie Agency in Kansas between William W. Hose, Commissioner, on the part of th© United States, and the

chiefs, braves, and head men of the Pottawatomie Nation, which provided for th© disposal of © portion of the res­ ervation of that tribe to the Leavenworth, Pawnee & Western Hailroad Company, and for a right-of-way for such railroad through the reservation*

The reservation consisted of

five hundred and seventy-six thousand acres*

According to

the treaty the whole tract was to be surveyed in the same manner as th© public lands were surveyed, and all those members of the tribe who desired to hold lands in severalty were to be assigned lands , under the direction of the Commissioner of Indian Affairs, as follows;

To each chief,

one section; to each head man, one half section; to ©aeh other head of a family, on© quarter section; end to each other person, eighty acres.

To those members of th© tribe

who desired to hold their lands in conation, there was set apart an undivided quantity sufficient to allow one section to each chief, one half section to each head man, one quarter section to each other head of 8 family, and eighty acres to each other person.

After the assignment of the

lands thus provided, the Leavenworth, Pawn©© & Western Rail­ road Company had the privilege of purchasing the remainder at the rate of $1.25 per acre#

This treaty was confirmed

by President Lincoln April 19, 1862.

431 To secure a patent to all the lands in question at this rate, the oompany, or its assigns, must within six years "construct and fully ©quip a good and efficient railroad from Leavenworth City through the reservation and to its western boundary."

During 1865 and 1866 the

Uhion Pacific Railway Company, Eastern Division, an assignee of th© Leavenworth, Pawnee h Western had completed a road from Leavenworth to e point beyond the western boundary i of the reservation, but the railroad company had not purchased th© Pottawatomie lands. An Act was passed by Congress on July 1, 1862, 2 "to aid in the construction of a Railroad and Telegraph line from th© Missouri Elver to the Pacific Ocean, and to seoure to the Government the use of the same for Postal and Military and other purposes."

For this purpose a

right-of-way "is granted to said railroad to the extent of two hundred feet in width on ©aoh side of said railroad where it may pass over the public lands."

In addition,

the railroad was to receive "every alternate section of public land, designated by odd numbers, to the amount of five alternate sections per mile on each side of said railroad, on the line thereof, and within the limits of ten miles on each side of said road."

The lends not sold

"within three years after th© entire roed shall hev© been completed shall b© subject to settlement and preemption, o

44 ¥aluation Reports 159* United States Statutes at Largea vol. 12, p. 489.

432 like other lands, at © price not exceeding one dollar and twenty-five cents per acre, to he paid to said company*" Mineral lands, with the exception of timber, were exempt under th© Act*

Upon th® completion of forty consecutive

miles the Secretary of the Treasury was Instructed to "issue to said company bonds of th© United States of one thousand dollars each, * * . to the amount of sixteen of said bonds per mile."

The issue of the bonds and delivery

to th© company *. * * shall, ipso facto, constitute a first mortgage on th® whole lln© of railroad and telegraph, to­ gether with th© rolling stock, fixtures and prop­ erty of every kind and description, and in con­ sideration of which said bonds may b© Issued; and on the refusal or failure of said company to re­ deem said bonds, or any part of them, when required so to do by the Secretary of the Treasury, in accordance with the provisions of this act, the said road, with all the rights, functions, immunities, and appurtenance thereunto belonging, and also all lands granted to the said company by the United States, which, at th© time of said default, shall remain In the ownership of the said company, may be taken possession of by th© Secretary of th© Treasury, for the use and benefit of th© United States; Provided, This section shall not apply to that part of any road now constructed* "And be it further enacted, That the Leavenworth, Pawnee and Western Railroad Company of Kansas is hereby authorized to construct a railroad and telegraph line, from the Missouri River, ©t th© mouth of the Kansas River, on th© south side thereof, so as to connect with the Pacific Railroad of Mis­ souri, to the aforesaid point, on th© on© hundredth meridian of longitude west from Greenwich, a© herein provided, upon the same terms and conditions in all respects as are provided In this act for the con­ strue ti on of th© railroad and telegraph line first mentioned, end to meet and connect with the same at the meridian of longitude aforesaid; and in case the general route or line of road from the Missouri River

433 to the Rooky Mountains should be so located as to require a departure northwardly from the proposed line of said Kansas railroad before it reaches the meridian of longitude aforesaid, the location of said Kansas road shall be made so as to conform thereto; and said railroad through Kansas shall be so located between the mouth of the Kansas River, as aforesaid, and the aforesaid point, on the one hundredth meridian of longitude, that the several railroads from Missouri and Iowa, herein authorized to connect with the same, can make connections within the limits prescribed in this act, provid­ ing the same can be don© without deviating from the general direction of the whole line to the Pacific coast.” It was also provided that the Kansas company should complete on© hundred miles of their road within two years after accepting the conditions of the above Act, and one hun­ dred miles per year thereafter until the road was completed* *1116 Leavenworth, Pawnee & Western Railroad Com­ pany did not complete any road and, on June 6, 1863, the name was changed to Union Pacific .Railway Company» Eastern D i v i s i o n Books had been opened by the Leavenworth, Pawn©© & Western Railroad Company as early as December 26, 1856, to receive subscriptions to stock and to secure from Oongrass a grant of land* 2 A meeting was also called at Leavenworth on January 3, 1857, to elect a board of directors. wTh© Leavenworth, Pawnee & Western Hailroad Company was organized in January, 1857, at Leaven worth, by subscription of #156,700 of stock, and the choice by the stockholders of a board of directors and other officers* Since then other subscriptions of stock within the limits of th© i 44 Valuation Reports 98* f Leavenworth^ "Janua ry 3, 1857* ** Idem*

3

charter have been made; new directors and officers at various times chosen; and th© company, pursuant to th© provisions of its charter, kept in constant and efficient existence* The construction of the road wa® commenced in May, 1857, and in that year surveys and profiles of the me in line were mad©, and th© location completed from Leavenworth to Fort Riley under th© direction of Mr* Edward L* Berthoud* In November last, final estimates and adjustments of the line were commenced by Col* Sylvester Medbury, of Columbus, Ohio, an engineer of known ability and experience, and are now being continued from Leavenworth to Fort Riley* Th© right-of-way and depot grouh&s for nearly that entire length of the line have been obtained— th© right through the reser­ vation of th© Delaware Indians having been se­ cured by the twelfth article of the treaty of I860, and the right through the reservation of the Pottawatomie Indians having been expressly granted by the .fifth article of th© treaty of 1862— and If the bill now pending should become a law, the company can enter at one© and vigor­ ously upon the construction of the road**’i A contract for th© construction of the first mileage was given 3©ptes&er 9* 1862, to Hoes, Steel &■ Co a contracting firm of Montreal, Canada, which began eonstruct Ion work at lyandotte, Kansas*

2

Gen. John 0* Fremont, Senator Benton*s sonin-law, and Samuel Hallett, of Steuben county, Hew York, having purchased a majority of th© stock of the company and having had th© name changed to Union Pacific Railway Company, Eastern Division, announced that their company would ignore th© construction contract of Boss, Steel & Company, ©n& construct th© road themselves*

Accordingly

1

Thomas Ewing, Jr., Extract from a pamphlet entitled Th© Charters of th© Leavenworth* Pawnee & Western 'Laws of Kan §as Affeeting ^ ^ — 'Lieb'illties* Hew York, 1864*

2

44" '¥aluatioin Weports 158*

435 on June 15 and July 1# 1863, the new company executed two deeds of trust to Hunt & Euggles, trustees; bond Issues of 15,760,000 and #7,200,000 were secured by road built and to be built as well as by th© lands of th© company* These deed© of trust completely disposed of all the assets of the corporation and conveyed away th© entire property upon which Ross, Steel & Company were to be secured for building the road*

Having received no pay for the work

already done, they brought an Injunction suit against th© Union Pacific Railway Company, Eastern Division, to prevent th© issuance of th© bonds*

Th© suit was heard

in the United States circuit court, before Associate Justice Miller, at Keokuk, Iowa* 1 to the contractors*

Th© decision was adverse

Mr. Hallett soon lost patience with the citizens of Leavenworth*

They continued to believe it was, a® Judge

Means had characterized it at the Railroad Convention of I860, the metropolis of Kansas, the great port of entry on the Missouri Elver; that all roads led to that city and the outlying counties had to go ther© for their supplies, and hence should consult her interests and meet her demands* Since its people believed Leavenworth indispensable to Hallett as the only possible ©astern terminus of the road 1

Federal Oases in tfoe Circuit and District Courts of th©r"lTnitiT'States* vol. 20, p* 1,245* See also.' l>eiaVex^^ Conservative* September 13, 25, and OctobeFT47'TS6T; October 23, 1863.

436 he was building, they demanded exorbitant prices for land and supplies*

Haliett proceeded to transfer the title to

all property of the Leavenworth, Pawnee & Western to the Union Pacific Railway Company, Eastern Division, removed th® personal property to Wyandotte and made that the terminus of the road in accordance with the terms of the charter* Incidentally, we might add, work was resumed on the Leaven­ worth and Lawrence branch July I, 1865* Samuel Haliett was given a contract February 13, 1864, by the Union Pacific Railway Company, Eastern Divi­ sion, to complete construction of th® work begun by Boss, 1 Steel & Company in 1862* "It is said that Samuel Haliett was a man of clear intellect and fine presence. He went to Johnstown, Pennsylvanis, to purchase the iron for his newly acquired road, rejjresenting that the road bed was graded and tied, and that bonds had been voted and would be forthcoming as 4Soon as the iron was delivered, all of which proved Mr, Haliett to'be © huge prevaricator* He did, however, receive enough iron to build the road to Lawrence. Mr, Haliett also went to the bank in St* Louis, Missouri of which Mr* John D. Perry was president, and represented that the road was graded and tied, and that iron to build to Lawrence was paid for* He wanted #15,000 to pay freight* This sum was advanced by the bank.”* Th© rolling stock and railroad iron was brought by barge from Weston, Missouri, the terminus of the Platte County Railroad, and th© nearest rail point to Wyandotte* 1 *

44 Valuation.B® port a 158. The Capital * Topeka * Kansas, June 2, 1888* Kansas &lWtorical 8oo1©ty, Wyandotte County Clippings, vol. 3, 1898-1913, p. 120.

437 The first rail was laid without pomp or ceremony April 14, 1864, in Wyandotte, for the purpose of handling material brought by river and landed at the levee*

To

obtain government subsidy this 1.82 mile branch was incorporated into the system*

A wood-burning locomotive

was brought by barge from Weston and, as the bank of the river was high above th© barge, a cut was made, rails were laid from the water*a edge to the deck of the barge, and on these the engine was landed*

J* H* Haliett, a

brother of Samuel Haliett, fired the boiler and used the engine to draw a small car.

The amateur engineer somehow

lost control, and the locomotive coasted over the end of the track and nosed into the river*

Fortunately for

Haliett, the cab remained out of water; none the less, for several days th© entire motive power of the Union Pacific Railway Company, Eastern Division, was. prostrate* A© Samuel Haliett was confident of success, he sent invitation© to high official© and to men of wealth throughout the nation to be present at the completion of the first forty miles of road*

His invitation ran as

follows i UNION PACIFIC RAIU.AY COMPAHY Eastern Division St* Louis, July 1, 1864* "Dear Sir— The government of th© United States, a little more than a year ago, with s wisdom look­ ing far beyond the burdens and anxieties of the hour, provided aid for the construction of a rail­ road from the Missouri river to the Pacific ocean*

436 Stimulated by its liberality and by the spirit of American enterprise, the work has been undertaken; and already the first section of forty lilies is approaching completion# The opening of this sec­ tion**-giving earnest to the people of the country that, within the time prescribed by law, the great highway will be built to 3en Francisco— bringing into close union the states of the Atlantic and Pacific, and offering to the industrial enterprises of our people the incalculable wealth of a continent— is an event worthy of commemoration by the leading men of America*. "You ere respectfully invited to attend the celebration, end will be received by the committee of arrangements at Weston, Missouri, on the 18th day of August next, on the arrival of the morning train from the east# "Upon the receipt from you of an acceptance of this Invitation, addressed to me at 58 Beaver Street, Mew York, you will be furnished with a free pass to Kansas and return, good over all the principal intermediate roads# Faithfully yours, Sam’Ulallett." The celebration never took place#

Shortly after

the date of Mr# Haliett*a letter of Invitation, and before the date set for the excursion, Mr# Haliett was shot and killed at Wyandotte by 0# A# Talcott# The history of the tragedy is related differently by different narrators, but all agree that it grew out of some difficulties about the construction of th© road and money matters connected therewith, in which Mosers. Haliett and Telcott were personally involved.

Haliett was con­

tractor and general manager of the Union Pacific Railway Qompamy, Eastern Division, and Talcott was its chief engineer, representing the capitalists*

439 Mr* John D# Cruise* says: T,X was an eye witness to the killing of Samuel Haliett. It occurred about 1*20 p.m., July 27* 1864. President Lincoln had been Informed by 0. -iB.* Talcott * Wi.io was a personal acquaintance of Mr* Lincoln* and who had been acting as chief engineer of the line, that the road was not being constructed by Haliett & Co* according to requirements; that Haliett & Co. were dishonest and owed nearly everybody (which was true), among them Talcott for services rendered. Samuel Haliett was shown .these letters from Talcott* He therefore wired his brother at Wyandotte to discharge Talcott and kick him out in the street if he called at the office and made any demands. Thomas Haliett, a large* burly man* on the strength of the message* slapped Talcott and threw him out of the office a few days later* Talcott was a small man and had had a stroke of paralysis and was physically no match for Tom Haliett* Talcott bided hi® time, remarking that if 8am Haliett was destroyed* it would end the regime of that family* and h© was correct, for it did* Samuel Haliett was sitting by me at the dinner table at the Gerno House* remark­ ing as he rose to go, fI will leave a telegram in your officei do not hurry your meal; it is not important*'1 He crossed the street to write the message— it was a very warm day* and he recrossed to get his umbrella* and started north on third street toward the general offices, which were in what was known as the Brick Block, the building in which the Wyandotte constitutional convention had been held. He had gone half a block, spoke to persons sitting in front of Holcomb1® drug store* Talcott among the rest* for he was a very affable, gentlemanly man. Talcott* after he had passed, raised the heavy repeating rifle which he carried and shot him in the back* Talcott had been in my office just before noon, and 1 had asked him to dine with me* but he refused. Jack Beaton, John M. Funk* the mayor and myself had just finished our meal, and ©aw the whole proceeding. We all ran to the scene, picked up Haliett and carried him back to the Garno House* but h© expired before we reached th© hotel. The bullet cut th© strap of his white duck trousers and lodged in hi© abdomen near the navel* but did not pass through* He exclaimed, *My God! my God!* Talcott instantly mounted his horse* which he had hitched conveniently* and rod© off towards Qulndaro* where he lived ©t the tl ^

Cruise, John D* ffLerly Days on the Union Pacific*w ICansas Historical Collections, vol. 11, p. 53# (1909).

440 John D, Pexry of St, Louis became president of th© road after Mr* Hallett*s death, end his company, John 0. Ferry & Company, completed the first 40-mile section of the road, which was accepted by the President of the United States on October 28, 1865. l In 1864* Congress amended the Act "to aid in the Construction of a Railroad and Telegraph Lih© from the Missouri Elver to the Pacific Ocean,” passed July X, 1862, by providing for a right-of-way "not exceeding in width one hundred feet on each side of its center line" through privately owned lands.

The land grant was

also increased to 12,800 acres per mil©, and the term "mineral land" was not to include coal and iron land. Mo lands which were selected under the provisions of an Act entitled "An Act donating lands to the several states and territories which may provide college© for the benefit of agriculture and the mechanic arts," approved July 2, 1862, could b© claimed by the railroad either under th© Act of July 1, 1862, or the Act of July 2, 1864.

The railroad was granted the privilege of issuing

its first mortgage bonds "to an amount not exceeding the amount of the bonds of th© United States, « * . And the lien of the United States bonds shall be subordinate to that of the bonds of any or either of said companies." Aid was to be granted upon th© completion of each and ^

United States Statutes at Large, vol. 13, p. 356,

441 ©very section of not less than twenty miles instead of forty as originally provided. "And he it further enacted, That the Leaven­ worth Pawnee & Western Railroad Company, now known as the Union Pacific Railway Company, Eastern Div­ ision* shall build a railroad from the mouth of the Kansas River, by the way of Leavenworth, or if that be not deemed the best route, then the said company shall within two years, build a railroad from the city of Leavenworth to unit© with the main stem at or near th© city of Lawrence; but to aid in the construction of said branch the said company shall not be entitled to any bonds* And if the Union Pacific Railroad Company shall not be preceding in good faith to build th© said road through the territories when th® Leavenworth, Pawnee & Western Railroad Company, how known as th® Union Pacific Railway Company, Eastern Division, shall have com­ pleted their road to the hundredth degree of longi­ tude, them the last-named company may proceed to make said road westward until it meets and con­ nects with the Central Pacific Railroad Company on the same line* And the said railroad from the month of the Kansas River to the one hundredth meridian of longitude shall be made by the way of Lawrence and Topeka, or on th© bank of th® Kansas River opposite said towns." One of th© interesting episodes of Kansas history, pertaining to the location of the Uhion Pacific Railway Company, la atern Division, in such manner ss to touch the 1 towns of Lawrence and Topeka, is related by lohn Speer: "The proposition of the contractors was to build to the north of Lawrence and Topeka, saving two miles and a half at Lawrence, and about one and three-quarters mile® at Topeka* Senator Lane pre­ sented to Samuel Hallett, contractor, a petition signed by thirty-six United States Senators, and en­ dorsed by Abraham Lincoln, asking that the road touch these two towns. Hallett refused, demanding $300,000 from Lawrence* Lan© then ted a bill passed by Congress authorizing the construction of th© road to these points, but atill $300,000 was demanded." ^

Speer, John, Life of General James H.

Lane,

pp. 272-278.

442 Speer says he was present in Lane's room when Samuel Hallett and John D* Perry called and informed Lane that they had determined not to change the location of the road unless Lawrence would vote them $300,000 bonds. 1 Mr, Speer continues; "Lane way lying upon his bed when this proposition was made* Hi® eyes flashed a© h© raised himself up and replied. ’Before you get a dollar out of that burned and murdered town (this was less than a year after the Lawrence massacre), you will take up ©very stump and every old log you have buried in your grade to save money, and stone ballast every mil© of road to Lawrence; and even then, when you get your first subsidies, let Jim Lane know.’ After a couple of similar meetings, Hallett, on June 13, 1864, wrote th© following letter to Lane; ’An inquiry into the wishes of the government and th© facts in th© case has induced me to adopt your suggestion in locating the main line of th© Union Pacific Railway, Eastern Division, so that it shall approach the Kansas river at the nearest practicable points opposite Lawrence and Topeka# 1 shall telegraph my brother to so make the location.,ft On July 1, 1863, contracts for th© construction of the road from milepost 40 to Fort Riley, Kansas, about 97 miles, end a branch line from Lawrence to Leavenworth, Kan­ sas, 31*9 miles, were given to R. M. Shoemaker & Company. This firm performed the construction work during 1863 and 1866,2 By amendments to th© Act of July 1, 1862, passed by Congress July 3, 1866,^ and March 3, 1869*^ the Union * Speer, John, op. oit. , pp. 272-278 . ? 44 Valuation Report® 159. \ 7 United1'BbaSaBtalSutes at Large. vol. 14, P* 79 vlcooj* 4 gpl'tefl'States atetutea at m r i e . vol. 15, P* 324 (1869).

443 Pacific Hailway Company, Eastern Division, was authorized to extend its road to a connection at the city of Denver with the road of th© Denver Pacific Railway and Telegraph Company, extending from Denver to Cheyenne, Wyoming, to form a continuous line of railroad from Kansas City by way of Denver, Colorado, to Cheyenne, Wyoming*

This Act

provided also for land grants as in the Act of 1862, but did not provide for a subsidy in United States bonds.

As

th© roed was not constructed ©long the route originally planned, the Federal bond© received were issued ©gainst constructed mileage equivalent to the distance between th© Miesouri-Kansas state line and the point of connection with the road of Th© Union Pacific Railroad Company between Omaha and Ogden, at the one hundredth meridian.

On Jan­

uary 24, 1S80, the date the successor of this corporation, th® 'Kansas Pacific Hallway Company; Th© Union Pacific Railroad Company; and, the Denver Pacific Hallway and Tele­ graph Company, were consolidated the company had recorded the receipt from th© Government of bonds with par value of #6,303,000, which sum was advanced to aid the construction of 393.9375 miles of road ®t #16,000 per mile.

These bonds

had been sold or otherwise disposed of, according to th® records, for #6,197,201.17.^ On October 1, 1866, a contract for the construc­ tion of the road from Fort Riley to a point on th© Diaoky ^

44 Valuation Reports 160.

444 Hill Elver which was later determined as the limit of the Government bond issue, about 257 miles, was given to Shoemaker, Miller & Company*

The firm performed this con­

struction work and also extended th© road about 11 miles beyond, to milepost 405, during the period from 1666 to

1868,1 E* M* Shoemaker & Company and Shoemaker, Miller & Company were associations whose capital was subscribed by numerous individuals who were to share according to their subscriptions in th© profits arising from, the- constructlon contracts*

2

The principal members of the

associations and the principal subscribers were also officers and directors of this company* The Kansas Pacific, successor to the Union Pac­ ific Hallway Company, Eastern Division, with its own forces, pressed construction,from milepost 405 to Denver, Colorado, about 234 miles, during 1869 and 1870.

It also constructed

a braaeh line from Detroit to Enterprise, Kansas, 1*95 miles, during 1878 and 1879* The segments were placed in operation as follows:** 1866, January 1 To: Topeka, Kan* 66.70 miles June 20, Wamego, Kan* 103*50 August 20, Manhattan, Kan. 117.80 October 15, Port Biley, Kan. 134*10 November 12, Junction City, Kan. 138.00 1867, May 8, Saline, Ken* 185*10 i

44 Valuation Escorts 159* Idem* 3 3oard of Railroad Commissioners, Kansas, First Annual Report. p. 92 (1883)*

445 July 15, October 14, 1868, January 4, June 5* August 22, 1870, April 1, September 1

111©worth, Kan. Hays, Kan* Coyote, Kan. Monument, Kan* Sheridan, Kan. Kit Carson, Col Denver, Col.

222.80 288.60 335*00 386.00 405.00 487.00 639.00

Th© branch road from Lawrence to Leavenworth was placed in operation on May 15, 1866* It will be noted that on August 22, 1868, the road reached Sheridan, here construction was halted, no further work being don© for a year.

This was because of

th© certainty that th© road would be blocked at Cheyenne from further extension directly westward*

Surveys were

mad© for © line to San Diego end San Francisco,'*' following essentially the route later taken by the Atchison, Topeka and Santa Fe.

The company was unable to interest Congress 2 or eastern capitalists iii th© scheme, however. Th© early corporate records indicate that th© com­

pany received subscriptions to its capital stock and author­ ised the issue of mortgage bonds prior to July 1, 1865, for 3 which period no accounting record® have been obtained.^ Th© available accounting records indicate that th© capital stock outstanding on July 1, 1865* when those records were opened, amounted to $104*750, but the consideration received therefor when Issued was not ascertainable*

No other

**• Anderson, George L., General. ? illiam J. Palmer « A_„,pecade of Colorado Railroad Building 1870-1880, in Colorado „ Coilege Publication®, p. 2$ (October, 1936). 2 Schmidt, 1. 0., "Story of the Union Pacific," The Topeka State Journal. October 30, 1935. 44 Falua tion Re ports 160.

446

securities were recorded as outstanding on July 1, 1065. However, other records Indicate that there had been issued to th® United States Government, as trustee for the Delaware Indie as , $286,742.15 par value of bonds in payment for lands, which bonds were outstanding in 1865.

‘The Delaware

Indians sold 223*890.84 acres of their lands to the Leaven­ worth, Pawnee and western Railroad Company2 and, under th® terms of a construction contract with H. M. Shoemaker & Company, dated July 1, 1865* the company sold part of these lands for the benefit of and the remaining part to, these contractors» who assumed the liability for the retirement of the bonds*

The records indicate that the arrangements

mentioned hereunder v/ere mad© by the company in connection with the Issuance of securities subsequent to July 1, 1865* During 1865 and 1866 the company issued #1,996,000 par value of certificates at par in part for cash, in part for other consideration®,

flies© certifies tea war© to

b© retired by mortgage bond© at 20 per cent discount, a part of which discount was to be paid with capital stock. Th© company issued #2,240,000 par value of Eastern Division first-mortgage bonds and f208,000 par value of capital stock in reacquiring th© #1,996,000 par value of certificates, and It also received #4*000 cash in the exohang© of securities. o

44 Valuation Heports 160. wilder. Daniel w.T Annals of Kansas, quoting a report from the Department'''of' interior, Office of Indian ^ Aff%irs, p. 640. 44 Valuation Reports 160.

4

447 Itoder -e contract with R, M* Shoemaker & Company, dated July 1, 1865, th© company agreed to pay $50,000 per mile for th© construction and equipment of a railroad between milepost 40 and Fort Riley, Kansas, the payment© to be made one half In capital stock and one half in cash. Settlement was mad© for construction work on the basis of #50,000 per mile for 97 miles of road, but was paid with #1,455,000 per value of capital stock, $970,000 par value of income bonds, and the remainder of #2,425,000 was paid through open account, the details of which were not aseer** 1 teined. Under a second contract with R* M* Shoemaker & Company, also dated July 1, 1865, the company agreed to pay for the construction and equipment of a branch road from Lawrence to Leavenworth, Kansas, by transferring #250,000 par value of Leavenworth county bonds, by Issuing #600,000 per value of its own Leavenworth branch bonds, and by Issuing Its capital stock at th© ret© of #22,000 par value per mile.

Payment® in th© form of Leavenworth county and

Leavenworth branch bonds were actually made, but capital stock was issued et #12,000 par value per mile, amounting to #379,200 par value, and income bonds were issued at #10,000 par value per mile, amounting to #316,000 par value* This contract ©Iso provided for the disposal of the Delaware Indian lands and the retirement of $286,742*15 P£;r value of ^

44 Y&1ua 11on Re ports 160-161.

44 &

bonds which had been issued prior to 1865 in acquiring these lands, as stated above.1 The transactions of the Hallway Company with R. M* Shoemaker* & Company, recorded In open account, show a total indebtedness incurred of #7,710,336.73, of which #6,518,576.92 was charged to investment In road and equipment• Total payments amounted to #7*790,005*62, the excess of #79,618.69 being canceled and charged to the investment in road and equipment account.

2

Uh&er © contract dated October 1, 1866, with Shoemaker, Miller &■ Company, the Union Pacific Hallway Com­ pany, Eastern Division agreed to pay $50,000 per mil© for th© construction and equipment of Its road between Port Hlley, Kansas, and a point on the Smoky Hill River, the payments to be made #16,000 in United States bonds, |16,000 in first-mortgag© bonds, and #10,000 in Income bonds, and #8,000 in capital stock,

The securities actually issued

to the contracting firm at the contract rotes consisted of $3,920,000 par value of United States bonds, #4*000,000 par value of middle division bonds, #2,539,350 par value of income bonds, and $2,071,500 par value of capital stock. Thee© securities did not comprise full payment for the approximately 268 miles of road constructed.

Xn & final

settlement #582,400 par value of lend-soript notes were issued to Shoemaker, Miller & Company, in lieu of th© i *

44 Valuation Heports 161. Idem.

449 additional contract payments*

1

Under this contract of October 1, 1866, the com­ pany issued an additional §600,000 par value of capital stock and $400,000 par value of income bonds to Shoemaker, Miller & Company, which company agreed to "pay the unfunded cash debts and obligations” of th© company existing at the termination of the construction contracts, in an amount not to exceed #500,000*

The company charged the contractors in

open account with #500,000 as consideration for the soourities so issued*

2

The company maintained an open account with Shoe­ maker, Miller & Company in which it charged them a total of #2,287,792*02 and credited them with a total of $2,213*** 275#94#

The balance of #74*516*6$ owing by Shoemaker,

Miller & Company in January, 1871, was canceled and charged 3 to the investment in road and equipment account* By a Joint Resolution of Congress, approved March 3, 1869, the name of the Union Pacific Railway Company, East­ ern Division was changed to th© Kansas Pacific Hailway 4 Company* During 1871 th© 'Kansas Pacific Railway Company offered to issue |200 par value of its capital stock and 1100 par value of its land-grant gold bonds In payment for each #100 in cash received.

The company received

't 44 Taluatlon Reports 161*

? Idem* i Idem* 4 Waited atetea Statutes at Large, vol. 15, p. 34$.

450 subscription® under this plan aggregating #1,900,000 and issued #3,800,000 par value of capital stock ©ud fl,900,000 par value of land-grant gold bonds to the subscribers*

In

accounting for the issue of the securities, th© stock we® recorded a® issued ©t a discount of 85 per cent and the landgrant bonds at © discount of 30 per cent*'1 In 18?2 the company offered to issue its second-mortgage land-grant bonds under an arrangement whereby each subscriber was to pay 96 percent of his subscription in cash, and was to re­ ceive securities as follow®s

the full amount of the sub­

scription in th© second-mortgage land-grant bond®, 68 percent of the subscription in capital stock, and 22 percent in income bonds*

Subscriptions aggregating #1,055*000 were

received under this arrangement.

In accounting for the

issuance of these securities, th© land-grant bonds were recorded as issued at a 4 per cent discount, and th© stock and Income bond®, issued at the approximate rates stated above, were recorded as bonuses* 2 The Kansas Pacific Bailway Company defaulted upon its interest obligations in 1873, but a funding arrangement was effected, deferring receivership until November 21, 1876.

Henry 7111ard and Carlos S. Greeley

were appointed receivers by the Uhited States court and operated th© railroad to June 14, 1879*

Th© receivership

was terminated without foreclosure of any of th© mortgages, o 44 Valuation Reports 162. 2 Mm*

451 when ooss&itteea representing the various classes of bond­ holder© consented to the issuance by th© oompany of a new mortgage to secure #30 ,000*000 par value of consol­ idated first-mortgage bonds*

Of this, #24,000,000 par

value were to be used to retire the principal and inter­ est of all outstanding funded debt, except th© United States bonds, and to acquire seeuritles of other companies* Th© remaining $6,000,000 par value were to be used to finance th© acquisition of extensions*

Only $3,453,855

par value of the consolidated mortgage bonds had been issued on January 24, 1860, th© date this company was consolidated with th© Denver Pacific and The Union Pacific Railroad Oompany to form Th© Union Pacific Hallway Company* Th® Kansas Pacific issued capital stock of $10,000,000 par value, ©hares $50 each, classified as com­ mon, for considerations recorded thus; Cash Part payment of construction by R* M f Shoemaker & Oompany Part payment of construction by Shoemaker, Miller & Oompany Leavenworth county bonds, acquired per value Interest on funded debt Services charged to income Outstanding July 1, 1365, when th© available accounting records were opened, charged to investment in road and equipment Issued with other securities to Shoemaker, Miller & Oompany Given as bonus©© with funded debt issued* charged to the 44 Valuation Reports 162*

# 570,000 1,834,200 2 * 071,500

250*000 120,600 100,000

104,750 600,000

452 investment In road and equip­ ment account Issued to the treasury Unapportioned part of the property constructed

925 ,450 191,500 2 ,000

The discount charged toinvestment in road and equipment account was $3*230,000#

Th© company reacquired, through

credits in open account, |250 per value, and held $191*750 par value, leaving a net of $9 *$08,250 P&r value outstand­ ing on date of consolidation#

This sum was subsequently

exchanged for the stock of the successor corporation* The company issued 132,949>775•59 per value of funded debt for considerations recorded as follows:

^

44 Valuation Reports 162-163*

0 0 0 **

1

O O O * >

4? ,486 ,595. 01 •*

Cash Open-aooount transactions, lohn D* Ferry & Oompany Fart settlement of open account with Thomas 0* Durant ' Legal expense® and services, charged to investment in road and equip­ ment account Part payment for construction by E* M* Shoemaker & Company, charged in open account Account of construction contract of Shoemaker, Miller & Oompany Open-aooount transaction, B. $4# Shoemaker & Oompany Investment securities acquired Interest on funded debt Debt of |2,000,000 owing lay Gould in open account settled for Settlement of other open account® Interest, salaries, and expenses Other considerations— not itemized Exchange for short-term notes Settlement of current liabilities

00

304 ,000*00 36 ,000*00 1 ,866 ,000*00

7 ,171 ,750 *00 467 ,945*47 2 ,405 ,863* 60 2 ,355 ,150* 12 1,500 ,000. 00 47 ,000. 00 28 ,454* 53 85 ,000. 00 766 ,649 *64 463 ,4bl.55

453 Th© total issued Tor considerations of determined recorded value was $32*949*775•59» on which th© discount was #2,344,079*53*

There must be added also:

character and

recorded value of consideration not ascertained, owing to missing records, #50,000; issued with other securities to Shoema&er, Miller & Company, contractors, $400,000; bonds stolen $24,000; and issued to the treasury #728,000# The total par value of all Issued bonds was #36,495,855.12* The oompany incurred open-aooount Indebtedness to Jay Gould aggregating #7,283,447*23 to date of consoli­ dation, of which |1,$92,778*95 bad been repaid, leaving #5,390,668*28 owing on date of consolidation#^ A condensed ©UM&ary of th© income accounts for th© period from January 1, 186?, to January 1, 1880, ©hows these major itemss^

railway operating revenues, #41,9$9,~

797*50; railway operating expenses, $25,3$0,47$*52J rail­ way tax accruals, #1,553,821*66; non-operating income, #23,980*85; deductions from gross income, #19,658,793*8$* A debit balance of |4,579,306*71 was transferred, therefore, to profit and loss* Mo dividends were declared during th© 3 above period. Th© profit and loss accounts show miscel­ laneous credits of $6,971,092.30; this included net receipts for sales of granted lands, #1,465,011*76; profit on purchase and sal© of investment securities, #8,414; o 44 Valuation Reports 164* ? MSB*

adjustments increasing the book value of investment secu­ rities, 13,959>902# 195 adjustment to bring to per value funded debt issued and reacquired at a. cost less than par value, #1,331,535*31} and other miscellaneous credits, #206,229*04#

Here, too, are shown a. debit balance trans­

ferred from income, 14,579,306*71; surplus appropriated for investment in physical property (additions end better­ ments charged by th© company direct to surplus), $3,603,171.41; debt discount extinguished through surplus, 1781,510*57; and miscellaneous debits #530,050*66#

A

net debit balance is recorded as of January 31, 1880, of

, , ..

12 572 947 05

In addition, the company recorded credits aggre­ gating 12,465,473*92, covering net proceeds from sales of granted lands, in a ledger account which was open on date of consolidation, which is not included above. The record© do not Indicate whether the Kansas Pacific Railway Company was controlled by any individual or corporation on January 24, I860, the date of consoli­ dation with The Union Pacific Railroad Company and th© Denver Pacific Railway and Telegraph Company to form The Union Pacific Railway Company.

However, at the date of

consolidation Jay Gould owned #4,000,000 of the #9,808,250 outstanding capital stock#^ o 2

44 Valuation Reports 164. Idem* ibid*, pp. 158, 162*

This company controlled on

455 date of consolidation, through ownership of capital stock, the following aoimon-eairrier corporations:

Denver Pacific

Railway and Telegraph Company; Golden, Boulder and Caribou Railroad Company; Junction City ©n& Fort Kearney Railway Company; The Solomon Railroad Company; the Central Branch Bhion Pacific Railroad Oompany; The Saint Joseph Bridge Building Company; and the Kansas Central Railroad Company,^ The property of this oompany was operated by its own organization from the dates the several sections were placed in operation to November 20, 1876, by receivers from November 21, 1876, to June 14, 1879, and by its own organization from June 15, 1879 to date of consolidation*

2

The company owned on the date of consolidation 674*43 miles of line located in the states of Kansas and Colorado; this mileage extended from the UXa aouri-Kansa a State line at Kansas City to Denver, Colorado, with branches to Leavenworth, Enterprise, and Wyandotte, in Kansas, Th© entire property had been acquired by construction a© detailed In previous sections. As previously mentioned, Jay Gould, at th© date of consolidation of the Kansas Pacific, owned #4*000,000 of the outstanding #9,808,250 par value capital stock* The material which follows indicates more clearly Gould*s relation to the Pacific Railways; especial attention being given to those located in Kansas* i

44 Valuation Reports 158*

Mm*

456

It was early in 1878 that Jay Gould first be cane interested in th© Kansas Pacific, and he straightway set about an attempt to do something which had been discussed X as early as 1875 ~**hariuoniaixig the managements of the Kansas Pacific and of the Union Pacific.

The hostility

between the two roads had been detrimental to both.

In

fact, th© Kansas Pacific assigned as the cause of its bad financial condition th© refusal of the Union Pacific to prorate its traffic westward from Cheyenne*

The right to

prorate was claimed by th© Kansas Pacific under the Act of 1862,

which provided that the various Pacific roads

should be operated as one system.

The reply of th© Union

Pacific sufficiently showed the injustice of the demand, even if it did not meet the legal aspect of the control versy.

It was this:

the portion of th© Union Pacific

lying west of Cheyenne was far more expensive, both to construct and to maintain, than either the Kansas Pacific or th© line from Omaha to Cheyenne.

It would be no more

than just, then to charge more for hauling freight through th© mountains than for hauling it over th© plains.

A

wholly sufficient cause for the financial misfortunes of th© Kansas Pacific was found in its too great capitalisation* ^

Fiftieth Congress, first session; Senate Executive Documenta, No. 51 Heport of the Commission and of the Minority Commissioner ofthe United states Pacific gailway 'Qo^Isaion Appointe& by the Act of Congress. ApprovedMarch '3 1887. K » Patt is on, Chairman, p. 450. Hereinafter cited as th© "Pacific Railway Comics ion.1* United States Statutes at L a r g e , vol. 12, p. 489.

457 The plan by which Gould hoped to quiet dissension between the two roads was embodied in the Kansas Pacific Pool Agreement, signed April 24, 1878,

By this agree­

ment twelve large holders of Kansas Pacific securities bound themselves to do certain things; vis., to unite in interest the Kansas Pacific and the Union Pacific so that they should be operated as one roed; to provide for the reorganization of th© Kansas Pacific on a sound basis; to secure th© payment of its bonds; and to apportion th© new stock which should be issued according to th© holdings of the various subscriber© to the agreement,

A schedule

of rates was fixed at which securities might be put Into th© pool, for which th© managers of th© pool would Issue oertifioetea to th® owners.1

At that time the funded debt of th© Kansas Pacific was 127,727,350,00, most of it bearing 7 per cent interest, but some of It 6 per cent and some as high as 10 per cent. The annual interest charge was #1,892,134*50.2 If this plan had been executed there would have resulted a company with no lien on its property except the first-mortgage over its whole length, the government lien on part of It, and |4,BOO,GOO of stock.

But for Its

success It was necessary that all th© securities outstand­ ing should com© into th© pool.

If part only were canceled,

the rest would i>@ thereby mad© more valuable. 0 1

Pacific Bailway Gomlssion, p. 162. ibid., pT SfSTT Sid., p. 455#

3

To attract

453 outside holders, the pool prices war© made somewhat higher than the market rates.1

But still some holders of securities

refused to make deposit, and it soon became evident that th© sohem© would not work. There was then perfected the plan of the con­ solidated mortgage which bears the date of May, 1879*^ Its objects were to get a uniform security and to make 3 a saving In interest. Of these new bonds there were |8,453,955 par value issued to date of consolidation, January 24, 1880.^ To complete our story of Gould#s relation to th© Kansas Pacific and the Union Pacific, it Is necessary for us to digress briefly and relate rather fully th© history of another Pacific railway in Kansas— the Central Branch Union Pacific. Railroad construction in northern Kansas— except the 4*6 miles westward from Blwood, built In I860 by the Marysville ox* Palmetto and Rose port Railroad Company 5 and almost immediately abandoned — began with the tchison and Pike#s Peak Railroad, incorporated by special Ret of th© Territorial Legislature of Kansas, February 11, 1859.^

This oompany was authorised to con­

struct a railroad from Atchison westwardly in the direction

i IkM*

9

P*

454•

Ibid.* p. 455* ? 44 Valuation Reports 162* « Idem* f Andreas, A* T#, on* Pit*,. p. 246 . Special Laws of Kansas Territory, p* 62 (1859).

459 of Bike’s Peak, ©mi it acquired the rights of the Hannibal and Saint Joseph Railroad Company under the Federal Pacific Railways Act of 1882, these rights included Government aid for 100 miles west from the Missouri River,1

Con­

struction was started about 1865, and by January, 1867, 40 miles of roed had been built westward from Atchison, 2 Kansas, On January 1, 186?, the name of the company was changed to Central Branch Union Pacific Railroad 3 Company, This company completed construction of th© remaining 60 miles westward to Aatervilie, Kansas, on 4 January 20, 1868. Evidently those who drafted th© Pacific Railways Act war© of the opinion that the line from Atchison would not need to exceed 100 miles in length to connect with the Leavenworth, Pawnee and Western (Kan­ sas Pacific}.

At any rate, it was to receive for not

more than one hundred miles of its length the same sub5 sidies given to other Pacific railways* On March 27, 1865, the company authorised the issuance of $1,600,000 of first-mortgage bonds secured by its property and franchises, with th© intention of using th© proceeds in cohstruction*

On April 3, 1665, sundry

persons, subscribers to th© capital stock, agreed to furnish not to exceed 4480,000 to finance the original construction 1 f

United States Statutes at Large, vol. 12, p. 489* 40 TValueW o n Re ports' $%9*

f

Ibid,, p. 466*

* Ibid., p. 549* Uhited States Statutes at Large* vol. 12, p. 489*

460 in return for which they were to reeeiv© $875,000 par value of capital stock aad to share proportionately in th© profits of the enterprise*

One of the subscriber®, William Osborn,1

was on May 9# 1665» awarded, the contract for construction of the road, and he immediately assigned to R* M* Pomeroy and others sixty of the sixty-four parts into which he di­ vided the road for purposes of construction*

All profits

and proceeds derived from construction were to belong to the various contractors*

2

The contract called for th® payment

of practically all of the asset® of the road*^

At © later

date Osborn*a share was bought up and, the other oonsentiag, the contract was canceled* After March, 1866, the sale of bond®, together with th© sale of stock option®, furnished most of the funds for building the road*

Th© subsidy bonds for the

first completed section of twenty miles were issued Aug­ ust 2, 1866*

Those for th© fifth and last section were 4 issued lanusry 24, 1868* Although this last iasu© of

bonds indicate® that a United States Commissioner had, in January, 1868, examined the last twenty mile® of road and sworn that it fulfilled th© requirements of the law, it was not until September 8, 1868, that th© contractor turned over to th© oompany the last 60 mile®* 1

Pacific Railway Commission, p* 5303* % 40 Valuation Reports 549* f Pacific Hallway Oomiesioii, P* 4091* 5 Ibid* * p* 1^03* 5 231*, P* 5304*

461 The actual cost of the construction of this line was #2,731,357*23*

Th© railroad ©©cured #2,537,489*22

from the sal© of securities as follows:

#$67,612*14 from

#1,600,000 of its first-mortgage bonds; #1,577,651*5$ from fl,600,000 of Government bonds loaned it; and #392,22$*$3 from stock option®. It would herdly be correct to say that th© com­ pany received #2,$37,489#22 from the sale of it© securities, because from the first item above noted, namely, th© sal© of th© company*a #1,60-0,000 first-mortgage, only #491,612,14 was received in cash; #?6,000 was recorded as services and credits on account.

Of this issued 842

bonds of #1,000 par value each were disposed of without any clear account being rendered,1 The Central Branch Union Pacific received 223,035 acres under its land grant.

2

The amended Act of 1864

3

provided for a land subsidy of 12,800 acres per mile throughout the subsidised length of 100 miles,

Th© de­

ficiency of 1,059,96$ acres was due to an insufficient ©mount of land available within the limits of the grant, When the Kansas Pacific turned westward from Port Riley to go to Denver instead of to its proposed junction with th© Union Pacific at the one-hundredth merid­ ian,^ the Central Branch Union Pacific was left without a o }

4

Pacific Railway Commie®Ion■ p* 5331* Pu6iior^Aids td Transportation,,. qp* clt*, vol. II, p. Ill, at large,., vol. 13, P* 356. United W ate e Statutes ©t large, vol. 14, p. 79,

462

Pacific road connection*

It thus became e spur terminating

on th® prairie, with no western connection.

But sound law­

yers said that the Act of Fuly 3, X866, could not be con­ strued to deprive the Central Branch of its right uhder th© Act of 1862 to continue its rosd up the old rout© of the Kansas Pacific to a junction with the Union Pacific:1 it was provided In the original Act that, should the road not desire to connect with the Kansas Pacific, it might connect instead with the line westward from Omaha, hut in this case its subsidy was to cover only the on© hundred miles lying next to th© Missouri River*

2

Other lawyers would go only so far as to say that this action of th© Kansas Pacific which Congress h&d sanctioned gave th© Central Branch a strong equitable claim on Congress for remedial legislation*

Senator

Fessenden, Maine, who had prior to this time been an opponent of Pacific railway subsidies, recognized the force of this reasoning; he approved the action of th© company in pressing its claim*

A bill was introduced In Congress

to declare that th© rights of th© Central Branch were in no way affected by the Act allowing the Kansas Pacific to follow th© Smoky Hill fork of th© Kansas River*

This action

was opposed by th© Kansas Pacific, and defeated by only 3 a narrow margin in the senate* 1 \

Pacific Railway Commission* pp. 4144-46. ttoite'a 'States Statutes gt L a m , vol. 12, p. 4$9* PnolfXc'Railway 'Commies Ion * p# 4093*

463

Th© claim was pressed before the executive branch of the government, however, end th© company was finally allowed to file a map for the extension of the road to a junction with th© Union Pacific*

President Grant signed

this map, and the matter seemed to be settled.

later,

however, certain men whose inspiration seems to have been drawn from Wall Street oonvinoed the President that his previous action in signing th© map had been urged upon him by those who wished to manipulate th© stock market;

in yaauary* 1873, therefore, to ©void being

used a© the tool of speculators, he sent to th© Department of the Interior for the map and tore off his signature.1 Attempts were made for several years to get redress for this ill-advised action, but without success* Having lost th© advantage which It was expected would accrue to it through connection with the Pacific railway system th© Central Branch initiated a program of short-line construction into the area west of the sub­ sidized portion, for the purpose of developing local ti^affie. In 1877 Oliver Ames began to take an active interest in th© 2 affairs of the Central Branch. H© had inherited from his brother, Oakes Ames, 666 shares of stock and 27 bonds. 1878 and 1879 he increased his holdings by purchases of stock ©t price© varying from $0 or less up to 160. 1 2

Pacific Railway Commission, p. 4096. p.

902.

In

464 In th© fall of1879 negotiations the sale of the property the Kansas Pacific#

were begun for

to Jay Gould, who then controlled

Am©a, with strong financial support,

was pressing construction with the avowed intention of reaching Denver*

Gould, who claimed this territory for

the Kansas Pacific, was building a parallel line, the Kansas Central, so near to the Central Branch that they ©t times disputed over right-of-way*

At the same time

that Ames was negotiating for a sale of his line to the Chicago, Burlington and Quinoy, he was Garrison of th© Missouri

in touchwith.

Pacific— even had some discussion

with Palmer of the Chicago, Hock Island and Pacific# was offering hi© stock at #300 per ©hare*

He

Finally, he

offered Gould five-eighths of the #1,000,000 outstanding, at #2J0 a share and the offer was accepted*1

On November

7, XS79, the contract we© drawn, Gould agreeing to pay In equal amounts of Union Pacific collateral trust bond© and of Kansas consolidated mortgage bonds*

On this day

Ames owned only 2,890 shares, yet he had agreed to deliver 6,250 ©hare©*

On Havener 11, 1879> Gould ©greed to accept

©n additional 1,000 shares at #250, a further block of 1,000 at $175, payment to be mad© in Kansas Pacific consols* On November 19, Gould gave Ames a thirty days* option to ©ell him the remaining 1,620 shares or any part thereof at #150.2 1 2

Between November 11 and December 30, 1879, Ames

Pacific Railway Commission* p* 80S* ^bia*"'* p V 'r526*

2

465 turned over 6,250 shares et $250, 1,000 shares at $200, and 366 shares at #175» receiving therefor #1,826,500* Payment was mad® in Union Pacific 6fs to the amount of #913»500, and in Kansas Pacific 6,s to the amount of #913,000*

Ames also delivered to Oould a majority of

the stock of the Atchison, Colorado and Pacific* company

This

a consolidation of the Vaterville and Washing-*

ton; the Republican Valley; the Atchison, Solomon Valley and Denver; the Atchison, Republican Valley and Pacific; and the Atchison and Denver Railway*

These properties,

together with the Central Branch, extended approximately 300 miles west from Atchison*

Ames also delivered to

Could 8,443 shares, e majority, of the stock of the Atchison, Jewell County end Western— another leased line*2 On January 24, 1880, Oould transferred this property to the Kansas Pacific, receiving therefor #1,826,500 in securities; #913,500 being Union Pacific 6 #s and the re~ msin&er, #913,000 being Kansas Pacific 6fs*

This, it will 3 be noted, is just what G-ould paid for the property* Thus this little road, 100 miles in length, during the few years that it maintained a separate existence

went through various phases of Interesting railway exper-* ience.

It was built for profit, yet run at a loss.

It

guaranteed the bonds of other roads, yet was in default 1 f J

pacific Railway Commissiona p. 524* Ibid** p. 809* " Ibid*. P* 527*

466 OB the interest of its own.

It leased a system of feeders

with an aggregate mileage double its own length*

While

continuing to pile up deficits and with a record of no dividends paid, its stock was sold at 250 to the shrewdest railway manipulator of the age*

Then it was transferred

to the Kansas Pacific, another roed with a history character** iaed by financial failure, remained in its control for a few hours, and at last lost its identity by absorption into the reorganized Union Pacific Hailway system.

The

Union Pacific proceeded, In turn, to lease the road to the Missouri Pacific and, to prevent a westward extension of the property, incorporated in the lease of September 30 , 1885» n proviso prohibiting the extension of the

Central Branch by the Missouri Pacific,^

On July 8, 1899,

the Missouri Pacific purchased the property, paying $2,500,000 in common stock and #2,500,000 par value of 2 first-mortgage 4 per cent bonds, therefor. The men -who built the Union Pacific Hallroad accepted the stock as a highly uncertain profit on the investment*

The Union Pacific Hallroad stock was, from

the beginning, speculative in characters

as early as 1869^

James Flak mad© an unsuccessful attempt to control it. ^

In

He construct ion Finance Corporation, Railway Division, Report, on the Missouri Paolfio 'System, p. 14 (Octobef 1935). ? 4d TaXuation' Report s 548 . riT 3 Forty-second"'bongress, third session: House Report No. 77, February 18, 1873 (Credit iSdblller Investigation-Mr. Polard, Chairman), Testimony taken by the Commission, p. 260.

467 1872 Horace F. Clark and his friends bought a controlling interest at 30 or thereabouts, the plan being to throw Union Pacific traffic over the Vanderbilt road— Clark being Commodore Vanderbilt fs son-in-law and a director of the Hew York Central. During the next year, at Clark’s death, this stock

wbs

put on the market, and it chanced that an order

from *F®y Gould to his brokers to buy what was offered at 1 35 or less was given about the same time. Gould thus c a m into possession of Clark’s stock.

Soon after this

the price was depressed to 14, and Gould, in alarm, began to investigate.

He found that there was an inmense float­

ing debt, carried at high rates of interest; 110,000,000 of income bonds were soon to fall due; and there were various other unsatisfactory features of the situation. By giving the matter almost his whole time and ^Instituting much-needed reforms, Gould succeeded within three years in placing the road on a dividend-paying basis;

2

and,

during a period of less than five years thereafter, the 3 Union Pacific paid dividends amounting to £11,942,125* The dividend-paying period was marred by the hostilities with the Kansas Pacific which led to discussion of the consolidation of the two properties.

Between 1073

end 1878 Gould increased his Union Pacific stock holding© from about 100,000 share© to double that amount, or ]- Pacific Hallway Commie.eio.tti P* 446.

| ’

Ibid.'. Idem.

» 4477^

46 8

1 five—ninths of th© total issue,

During th© next two years,

however* ho decreased his holdings, surrendering his abso­ lute control of the road, Gould*s sal® of Union Pacific stock and his purchase of Kansas Pacific stock Indicates his estimate of th© relative value of the two roads.

The fact that the

Union Pacific was a link in th® only rail route across the continent had assured to it at one® a place of importance in the commercial world and an immediate income.

The import­

ance of the Kansas Pacific came later, and Gould seems early to have recognised that importance. By the summer of 1879 th® physical condition of the Kansas Pacific had, under Gould’s management, been greatly improved.

The movement of settlers into its

territory had increased business and permitted increased outlay of funds for the betterment of th© property*

A

short time before, during a trip abroad Gould had observed with admiration th® compact, essentially non-competing railway systems of England, and perhaps he was influenced by this to advocate the consolidation of the Union Pacific and the Kansas Pacific,^

His chief interest was in the

southern road, but th© Union Pacific management agreed with him perfectly in his desire to eliminate competition.

Con­

solidation would have been effected sooner than it was but for th© differences that developed over the relative values 1 2

Pacific Hallway Comission> P* 451. p#

173,

469 of th© properties#

Union Pacific interests disputed sharply

Gould1a assertion that th© Kansas Pacific stock was worth more per share than the stock of the Union Pacific*^ Gould argued for his position somewhat in the following manner*

Th© Kansas Pacific is capitalized at

#60,278, and the Denver Pacific at #43,216 per mile,

The

Union Pacific carries a capitalization of #110,870 per mile* Th® Kansas Pacific has, therefore, lighter fixed charges; it runs fifty miles further east, and so has a longer stretch of agricultural country to draw from; it lies 2,000 feet lower than the Union Pacific, and so is in less danger from snows; It© land grant is more valuable; its terminals at both Kansas City ©nd Denver are very valuable*

2

On the other hand, Union Pacific interest© point­ ed out that their road was earning a net of #5,616*66 per mil© per year; that the Kansas Pacific had an earning of only #1,601*77 and the Denver Pacific #1,332*70.3

They

also pointed with pride to the large dividends which they had paid and to the fact that the other two road© had 4 never paid © dividend. Gould had been improving the physical condition of the Kansas Pacific, and th© territory served by this road was being rapidly settled:

this gave some basis for

th© claim that it would soon exceed th© Union Pacific in ~ 2 f

Pacific Hallway OosmiBsion. p. 660. Xfrj[dtt 897.“ I44 & 0 E * »p* 4,988. yaluation He port a 153, 157, 164.

470 earning capacity.

As an argument of another sort Gould

showed how, by an extension of its branches, th© Kansas Pacific could seriously out into the Union Pacific traffic. Although all that Gould said was acknowledged to b© reasonabl© enough, th© Union Pacific group still held back, and tills irritated Gould.

.Finally he began a series

of maneuvers which quickly brought them to terms.

Before

th© end of the year 1879 Gould had strengthened his position in the western railroad field by purchasing the Central Branch, as previously related, and the Kansas Central. This latter road was a narrow-gauge line extending from Leavenworth, Kansas, westward for about 150 miles*

These

two roads, lying between the Union Pacific and the Kansas Pacific, were bought for the joint protection of the latter two properties*

Commodore Garrison was at that time extend­

ing th© Missouri Pacific, which then consisted of © scant 300 miles of road,'*’ into Kansas Pacific territory.

Gould

threatened to build the Kansas Pacific as far east as Garrison built the Missouri Pacific west.

Many interviews

ensued, end finally Garrison suggested that the cheapest way to stop the fight was for Gould to buy th© Missouri Pacific.2

This proposal met Gould’s favor, and November

13, 1879,3 th® contract was drawn, #3,000,000 being paid 4 for 4,000 shares of stock— #750 per share* *

Pacific Railway Commission, p. 506.

2

ft-lAVr W

509. liia., p. 506. 4MI-» p* 529.

'

471

Having bought the Central Branch and the Kansas Central to protect both the Union Pacific and the Kansas Pacific, and th© Missouri Pacific to protect the latter, Gould announced his next move*

Since the Union Pacific

lay north of the richest mineral belt of the Hooky moun­ tain® and the Southern Pacific ©outh of it, there was a place for a road between them. this road*

Gould proposed to furnish

Th© Missouri Pacific and the Kansas Pacific

being operated harmoniously, it was only necessary to build westward from Denver through Loveland Pass to Ogden* connecting there with the Central Pacific, in order both to tap the mineral belt and also to secure the shortest rout© aoros© th© continent.^

This would have rained the

Union Pacific,2 and the Union Pacific group knew it.

To

say that they were perturbed would be putting it mildly* Frequent interviews with Gould were held, and it was urged upon him that he had already committed himself to the previously planned consolidation*

Although Gould had th©

matter entirely in his own head,3 he acknowledged the force of this statement, and at last consented to consolidation on th© term© which he had originally off ©red— share for share*

Th© first of th© papers necessary to th© completion

of this bargain was drawn on January 14, 1880; the final articles of consolidation were signed January 24, 1880.^ 1

Pacific Ballway CoBnalsstcm. p. 505.

2 ibid.”. ''p/Tofr

3 TfTS.. p. 558. 4 For text see ibid,, p. 668.

472

ThB

Valiev Railway Company was

Incorporated in Nebraska and Kansas through articles of con­ solidation, dated February 3, 1887, and filed February 14, 1887, by the Blue Talley Railway Company and the Omaha and Republican Talley Railway Company of Nebraska.1

It was con­

trolled on October 4, 1898, the date of sale, by th© Union Pacific Railroad Company through ownership of its capital stock,

Th© property was opera.ted by The Union Pacific Rail­

way Company from th® date of incorporation to October 13, 1893#

Thereafter and to date of sale it was operated by

receivers.

2

The railroad owned on date of sale consisted of 481.6? miles of line located in Kansas and Nebraska.3

The

Kansas mileage, 6?.75 miles, was acquired from th© Blue Talley Railway Company.^

The Omaha and Republican Talley

Railway Company Issued #486,199*15 par value of capital stock and assumed a liability of $19,526.23 for the con­ version of th© remaining outstanding stock, in th© aoc qulsition of the Kansas property.-'

The Blue Valley Railway Company waa Incorporated in Kansas through, articles of consolidation, dated July 1, 1886, and recorded January 1, 1887, unifying The Man­ hattan and Blue Valley Railroad Company and The Marys­ ville and Blue Valley Railroad Company.6 i * 3 I ? 6

44 Valuation Reports 97-98. Ibid.'. p. 16 9 . TSSL m . P. *73. ibid., pp. 174 ,176. ISIS.* p. 98.

The records

473 examined do not Indioat© that this company maintained any accounting records, that it actually issued any securities or incurred any other Indebtedness, or that it operated any railroad property.

The companies that were consoli­

dated to form this company end the company that was formed as a result of th© consolidation of this company with another, were then controlled by Th© Union Pacific Hallway Company.

Th© property was operated from the date of its

Incorporation to th© date of consolidation by The Union Pacific Hallway Company. The company owned on date of consolidation 67*75 miles of railroad extending from Manhattan, Kansas, to th© Kansas-Nebraska boundary.1

Of this, it acquired 12*80

miles from The Marysville and Blue Valley Railroad company and 33*25 miles by completion of construction begun by that company* Th© Manhattan and Blue Talley Railroad Company was incorporated July 28, 1879» under Kansas laws.

2

The

compeny was controlled on July 1, 1886, the date of con­ solidation, by The Union Pacific Railway Company through ownership of its capital stock* The railroad owned on date of consolidation extended 21.70 miles from Manhattan to Randolph, Kansas. Of this total about 6 miles were acquired through fore­ closure of the Manhattan and Northwestern Railroad Company 1

44 Valuation Reports 173*

2

IbiftT r ' i r W *

474 and 15*70 miles by completion of construction begun by that company.

In addition, it owned a proposed line

between Randolph and Marysville, Kansas, 33.25 miles, on w h ic h

mx ^mcd©t© ^m ^lnied ajdxoxmt o f

O 'O ix s t-fr ic tio n h a d

b ee n , n o n e

*1

The authorised capital stock was #500,000 par value, shares #100 each*

The company received #17,000

par value bonds of Jackson township, Riley county, Kansas, in exchange for an equal par value of its capital stock.2 A condensed summary of the income statement for the period June 1, 1836, to December 31, 1836, shows: railway operating revenues to have been, #41,841.56 and railway operating expenses, #35,424.93~~wibh a resulting credit balance of $6,406*63*

Th© profit and loss account *

contained only the net credit transferred from income* No dividends were declared by this company.

%

The Manhattan and Northwestern Railroad Company was incorporated June 2, 1371, in Kansas,^

The property

of this company was sold at foreclosure sale on July 15, 1879*

The railroad owned on date of sal® consisted of about

6 miles of line extending from Manhattan, Kansas, to a point on the Blue River.

This mileage was constructed during the

period June, 1872, to November, 1874*

In addition, it

owned about 2? mile© of grade extending from th© Blue River to a point near the north line of Riley county, Kansas. 1 | f

*

44 Valuation Report® 173* IblAV, pp. 173-1747" l£id., p. 174* Ibid., p. 98.

475 Of sueb grad© about 15 sidles was abandoned or not utilized by the successor company*

X

Th© authorized capital stock was #1,$00,000 par value, shares #50 par value each*

How much was actually

issued and the consideration received therefor were not ascertained,

Th© court records in proceedings, incident

to the foreclosure of its property, indicate that this company issued #84,000 par value of its firstH&ortgage 8 per cent bonds dated September 1, 1874, due September 1,

1894*

The considerations received for these bonds when

issued were not ascertained.

2

The treasurer*s cash book indicates expenditures aggregating $167,633.47 for the construction of its road and uncompleted grade,^ The Kayysvilla and Blue Talley Railroad Company was incorporated July 5, 1879, under a Kansas charter,^

It

was controlled on July 1, 1886, the date of consolidation by The Union Pacific Hallway Company through ownership of its capital stock*

The property was operated by Th© Union Pec*

ific Railroad Company and The Union Pacific Railway Company 5 from January 1, 1380, to the date of consolidation. The company owned on date of consolidation 12*80 mile© of railroad extending from terysvill©, Kansas, to 44 Valuation Reports 175* Idem* 7 Mem* \ M S * . P* 98. 5 M m P. 175. 2 \

476 th© Kansas-Nebraska border, ©11 of which mileage was acquir­ ed by construction during the period July, 1879, to Jan­ uary 1, 1880.

Construction work was performed by The Onion

Pacific Railroad Company and Th® Onion Pacific Railway Company*^ from the date of its incorporation to date of consolidation the company issued capital stock and long­ term debt aggregating #194»719*88 par value, of which #186,403*01 was outstanding on date of consolidation.

Th©

authorized capital stock was #1,000,000 par value, shares #100 each, classified ©s

c o m &o u

stock*

Of this amount,

#64,000 was issued in part payment for constraction and equipment but was subsequently reduced by #6,612*73* or to #57,367*27, with a corresponding reduction in the invest­ ment in road and equipment account.

This adjustment was

necessary to reduce the stock liability to an amount equal to $$*000 per mil© of road, the basis of capitalization of the Omaha and Republican Talley Railway Company, which acquired th® property through a subsequent consolidation. Th© company issued #128,000 par value of its first-mortgege 7 per cent bonds in pert payment for construction of road ©ad equipment • All of these bonds were outstanding on date of consolidation and were subsequently assumed by the Omaha and Republican Talley Railway Company. ^

44 Valuation Reports 175#

2

Ibid., p .

176.

2

477 The investment in road and equipment, including land, on date of consolidation was #18$,107*13. this wore three items:

Offsetting

#57,387*2? par value capital stock;

#128,000 par value funded debt, issued to The Union Pac­ ific Hallway Company for construction; and #2,719*8$ in nonnegotiable debt to an affiliated company, representing credit given by The Union Pacific Railway Company in open account for addition® and betterments*^

The books of The

Uhion Pacific Railroad Company and The Union Pacific Rail­ way Company indicate that those companies recorded money outlay of #364,833*29 in the construction and equipment of the property of this company* A condensed summary of the income accounts for

the period January 1, 1880, to December 31, 1886, records the following items?

railway operating revenues, #35,704*-

74; railway operating expenses, #59,031*04; railway tax accruals, $1,849*56; non-operating income, #26,880; and deduction® from gross income, #62,720* 2

anoe resulted of $61,01$*86*'

A net debit bal-

Ho dividends were declared.

The Union Pacific* Lincoln and Colorado Railv< Company was incorporated under the general laws of Kan­ sas and Colorado, through article® of consolidation dated August 1, 1888,

These were filed in Kansas November 5,

1888, and in Colorado October 6, 1888. 1 2 J

44 Valuation Reports 176-177. Ibid., p. 176.

ibid*, p.

It was controlled

478 on October 4, 189$, th© date of sale, by the Union Pacific Railroad through ownership of its capital stock*1

The prop­

erty was operated by The Union Pacific Railway Company from the date of incorporation to October 13, 1893.

Prom this

date until date of sale it was operated by receivers. The company owned on date of sale a railroad of 225.35 miles extending from Selina to Colby, Kansas, 203.35 miles, and from Oakley, Kansas, to Colby, 21.96 miles*

Of

the road owned on date of sale, 95*12 mile© had been acquired from The Union Pacific, Lincoln and Colorado Railway Company in Kansas and 130*91 miles by completion of construction begun by two predecessors of that company*

Decreases in

mileage in consequence of abandonments in excess of additions, resulting from line changes, amounted to 0*68 miles.

The

property acquired from The Union Pacific, Lincoln and Colo­ rado Hailway Gompany in Colorado consisted of a surveyed line from the Kaasas-Golorado State line to River Bend and to Byers, Colorado; for this line © part of the right-of-way had been acquired and some grading don©*

The construction

of the road in Colorado was never completed, and the project was later abandoned. 2 The authorized capital stock was $27,500,000 par value*

Th® company Issued capital stock in exchange

for the following recorded considerations:-*

for con­

struction of its property, $70$,600*00; settlement of 1 5

44 yaluatlon Re ports 183*

Ibid., pp. 183-184.

479 advances for account of th© Minneapolis, Stockton and Pacific Hallway Company {premium $57*92), $26,457*92; acquisition of properties obtained through consolidation, $1,122,800.00; nonnegotiabl© debt repaid (discount $38 *64 ), $139 ,961,365 premium and discount net credit, #19*2S. Outstanding on date of ©ale, held by or for the Union Pacific Railroad Company, was stock totalling 11,997,300 par value* Th© Company incurred or assumed aonnegotiabl© debt to The Union Pacific Railway Company aggregating #997,832.85 to date of sale, of which #296,137.40 remained due on date of ©ale.

Book© of The Union F&elflo Railway

Company indicate that its claim against the company was ©old for 1500, under court order; th© remainder, |295,~ 637*49, was canceled.1 The books of Th© Union Pacific Railway Company indicate that its recorded money outlay in the eon©trac­ tion of th© line from PlainvllI© to Colby was $1,502,699.2

This line was begun by The Lincoln and Colorado

Railway Company and completed by Th© Union Pacific, Lincoln and Colorado Hallway Company#

A condensed summary of th®

income accounts for th© period October 1, 18B8, to October 31, 1898, gives the following:

railway operating revenues,

#2,206,449*62; railway operating expenses, #1,460,703*11; t 2

44 Valuation Report© 185* Ibid*. p. 1S6..

480 non-operating income, #494,407.59; end deductions from gross income, #2,484,281.97.

A debit balance of #1,244,-

127.87 was transferred, therefore, to profit and loss.

No

dividends were declared by this company,*The Onion Pacific, Lincoln and Colorado Railway Company in Kansas was incorporated June 8, 1888, under the

general laws of Kansas#

The records do not indicate th&t

It maintained any accounting records, that it actually Issued any securities or incurred any other indebtedness, or that it operated any railroad p r o p e r t y T h © property was operated from the date of its incorporation to the date of consolidation by The Union Pacific Bailway Company*^ The company owned on date of consolidation 95 *12 miles of line extending from saline to Waldo, and from Colby to Os&ley, all in Kansas#

The road owned, with

oertain partially constructed lines, had been acquired from its predecessor companies, as follows?

from th© Salinef

Lincoln and Western Railway Company, Salina to Waldo, 73#16 miles, also from this same company a partially constructed road from Tftaldo to the west line of Plainville township; from the Oakley and Colby Railway Company, a partially con­ structed road from Oakley to Colby, 21*96 miles; and from Th© Lincoln and Colorado Hallway Company a projected and partially constructed road extending from the west line i ;

44 Valuation Heport© 185* Ibid,7 %7''W.

? IIS.. P. 186.

** l a w .

4S1 of Plainvllle township to Colby , 96*52 miles Th© Saline*. Lincoln and We stern Railway Company was © Kansas incorporation of August 12* 1885*^

It was

controlled on July 25» 1888, the date it was sold, by The tJhion Pacific Railway Company through ownership of its capital stock:*

The property of this company was operated

by The Union Pacific Hallway Company from the dates the successive sections of road ware placed in operation to the date of merger with the property of th© parent company* The company owned on the dat© its separate identity was lost a railroad of 73*16 miles extending from Oalina to Waldo, Kansas* construction*

This mileage had been acquired wholly by In addition, it owned a partially constructed

road between Waldo and the west line of Plainville town** ship.3 Authorised capital stack: was #1,200,000 par value, issued at #100 per shore, and classified as common stock* Of the authorised ai&ount the company Issued #1,050,000 par value for construetioh of its property and $150,000 par value for purposes which were not determined*

The total

#1,200,000 issued were exchanged for stock of The Union Pacific, Lincoln and Colorado Railway Company in Kansas*4 The company issued #1,097,000 par value of first-mortgage 6 per cent bonds dated December 1, 1885, due December 1, * 44 Valuation Reports 136* 2 Ibid,, p* 98*.... ? '£fe"id»» pp* 188-137* 4 Ibid* * p. 137.

482 1915* in part payment for construction of its property* These bonds were subsequently assumed by The Union Pacific, Lincoln and Colorado Railway Company in Kansas*

The com­

pany also incurred nonnegotiabl© debt to Th© Union Pacific Railway Company aggregating 1105,197.90, classified as open account, all of which was owing on July 25, 1888, the date this company was merged with The Union Pacific, Lincoln and Colorado Railway Company in Kansas.^ A condensed summary of the income account© for the period September 1, 1886, to September 30, 1888, shows the following itemss

railway operating revenues, $128,-

.440*13 5 railway operating expenses, #128,852*93; end deduc­ tions from gross income, #104,290*00.

An income debit

balance resulted, therefore, of #104,702.80.

Ho dividends

were declared* The books of The Union Pacific Railway Company indicate that it made & recorded money outlay of #1,393,032.67 in the construction of the property of this company from Saline to Waldo and in the completion of the partly constructed road from Waldo to Plainville.^ The Lincoln and Colorado Railway Company came into existence January 8, 188?, under a Kansas charter.

5

On July 25, 1888, the date this company lost its separate 44 Valuation Reports 187. Idem. 7 i&s* t m i * * p * ias* * Ibid., p. 98. \

?

identity to Th© Union Pacific, Lincoln and Colorado Hall­ way Company in Kansas, the company owned a projected road extending from the west line of Plainville township. Hooks county, toward Colby, a distance of 96.52 miles, all in Kansas, which road had been partially constructed under contract by Lewis T# Wolle#

In addition, it owned about

IS.70 miles of graded roadbed between Colby and the Kansas** Colorado boundary, which property was subsequently abandoned. The authorized capital stock was $6,500,000- par

value, shares of $100 each.

The stock book indicates that,

of the authorized amount, #125,000 par value mas issued in 2

exchange for certain aid bonds of townships in Kansas#

The Union Pacific, Lincoln and Colorado Railway Company in Kansas, which acquired the property through a subsequent consolidation, incurred stock liability of #125,000 for conversion of this stock, but the records of that company 3 do not indicate that any conversion was accomplished* Th® Oakley and Colby Hallway Company was incor­ porated November 16, 1835, under the general laws of Kan­ sas

and it was controlled on July 25, 1888, the date it

was merged with Th® Union Pacific, Lincoln and Colorado

Railway Company In Kansas, by The Union Pacific Railway Com­ pany through ownership of its capital stock#^

* 44 Valuation Report,a. 188. Idem# 3 i BH* * IHd. , p. 98# \

The property

484 was operated by The Union Pacific Hallway Company from November 13# 1887* the data it was placed in operation, to July 25, 1888#

Th© company owned on July 25, 18S8, ©

railroad extending from Oakley to Colby, all in Kansas, which road had been acquired by construction during 1886** 1887.1 The authorized capital stock was #1,500,000.

Of

this ©mount,, #109,800. was issued to The Union Pacific Hail** way Company and charged at par value to investment in road and equipment#

The books of that company Indicate that

the stock was received as a bonus in consideration of pur** ©has© of bonds of the company.

This stock was later ex­

changed for an equal par value of The Union Pacific, Lincoln and Colorado Railway Company in Kansas.^

The company

issued #236,000 per value of first-mortgage 5 per cent bonds dated June 1, 1886, due June 1, 1916, to The Union Pacific Railway Company, these being charged at par to investment in road and equipment.

The books of the Union Pacific

Indicate that the bonds were applied as part settlement of outlay for construction of the property of this company. These bonds, outstanding on July 25$ 1888, were assumed by The Union Pacific, Lincoln ©nd Colorado Railway Company in Kansas.3 The company incurred nonnegotiable debt to The Union Pacific Railway Company aggregating #20,155*37, which * ?

44 Valuation Reports 189# Idem.

485 was assumed by the suooessor corporation, The Union Pacific, Lincoln and Colorado Railway Company in Kansas; this amount represented the net deficit from operations. The investment in road, including land, no equip­ ment being owned, was stated in th© books at #245,800, This sum was equal to the par value of the capital stock and funded debt which had been Issued to The Union Pacific 2

Railway Company*

The books of Th© Union Pacific Kailway

Company indicate that its recorded money outlay for the con­ struction of the property of this company was #264,409*90* The Junction City and Port Kearney Railway Com­ pany was incorporated June 30, 1871, under a Kansas char­ ter*^

It was controlled on May 29# 1899# the date of sale,

by the Union Pacific through ownership of its outstanding

capital stock*

The property of this company was operated

by the Kansas Pacific Railway Company and its recetvers from the date it was pieced in operation, February 13,

1873, to February 1, 1880, and by The Union Pacific Rail­ way Company and its receivers from February 1, 1880, to the date of sal©*4

Th© company owned on date of sal© 88*01

miles of line in Kansas: this consisted of mileage from Junction City to Concordia, 70*86 miles, with a branch line from Lewrenceburg to Belleville, 17*15 miles, ell of which had been acquired by construction from 1873 to 1884. \ ? i

4

44 Taluetion Reports 189. Idem*

i P* 98. M I m P* W .

486 Construct Ion work on the line from Junction City to Clay Center,. 33 miles, was performed under contract with B* K. Carr and associates*

Carr at that time was president of

th© Kansas Pacific Hallway Company*^* Th© authorised capital stock was #2,000,000 par value#

Of this #1,056,100 par value were issued for the

following recorded considerations; for construction of its property, #764 ,0005 investment securities in the form of aid bonds, #292,0005 discount on aid bonds, #100#

The

company Issued first-mortgage 7 per cent bonds in the amount of #970 ,000 , and first-mortgage 5 per cent bonds in the amount of #171 ,000 # These bonds, aggregating #1 ,141 ,000 , were issued for two purposes;

consti’uction of property,

#1 ,021 ,000 ; and #120,000 in settlement of a nonnegotiable debt of #96 ,000,2 A condensed summery of the income accounts for the period February 13, 1873, to May 29, 1899, gives the following items;

railway operating revenues, #3,155,902*-

53; railway operating expenses, #2,455,022#87; railway tax accruals, #373,337*98; non-operating income, #31,808*59; and deductions from gross income, 11,736,425*00*

A debit bal­

ance of #1,377,074*73 was transferred to profit and loss* Th© profit and loss account for th© same period shows two credits;

net loss from operations from October 13, 1893,

to August 31, I896 , charged to receivers of The Union ^

44 Valuation Reports. 190*

2

Idem.

487 Pacific Hallway Company by court order, #88,394.15, and other miscellaneous credits, $2,165.00. twos

Debits shown were

net debit balance transferred from income, $1,377,-

074*73, and miscellaneous debits, #5,020.46*

A net debit

balance of $1,291,536*04 resulted a© of date of s a l e N o dividends were declared by this company. The Salina and South Western Hallway Pompany was incorporated under the general laws of Kansas through arti­ cles of consolidation dated December 21, 1880, and filed February 24, 1880, by The Saline and Southwestern Railway 2 Company* It was controlled on September 21, 1900, the date of sale, by the Union Pacific Railroad Company through ownership of its capital atook.

The property was opei^ated

by Th© Union Pacific Railway Company from the date of incor­ poration to October 13, 1893? by receivers from October 13, 1893* to April 15, 1898; and by the Union Pacific Railroad Company from the latter date to th© date of aale.^ Th© company owned on date of sale 35*46 miles of

railroad extending from Selina to McPherson, all in Kansas. Of th© road owned on date of sale, it had acquired 20.83 miles from The Saline and Southwestern Railway Company and 14.63 miles from Th© Kansas and Southwestern Railway Com­

pany.

It constructed 3.20 miles in Saliha and abandoned

3.18 miles in Saline and 0*Q2 mile in McPherson during

^ ? 3

44 Valuation Reports 191* Ibi000 \

44 Valuation Reports 202

3 i n f .. p. 203.

#1 ,000,500*00 575,000*00

107,000.00

495 For services, capital stock issued, par value

1,350.00

For additions and betterments Honnegotiable debt to affiliated coi&pany* The Union Pacific Hailway Company

22*040*98 #1,705,890.98

The #107,000 par value of construction aid bonds did not reach the treasury of the company*

Th® Kansas

Pacific Railway Company acquired bonds of #50,000 par value and disposed of them for #42,000 cash*

The Union

Pacific Railway Company acquired bonds of #7,000 par value, receiving for them #5,950* in part settlement of an open account*

There is no record as to the remaining #50,000*^ The Topeka and northwestern Railroad Company was

a Kansas Incorporation of June 9, 1904*^

It was controlled

on May 30, 1908, the date of sale, by th® Union Pacific Railroad Company through ownership of its capital stock* The property of this company was operated by Its own organ­ ization from th® date it was completed, February 5, 1906, to July 1, 1906, and by the Union Pacific Railroad from th®latter date to cU t©

of sal©*

During the period of

operation by th© Union Pacific Railroad Company, that com­ pany received all revenues and paid all expenses and taxes* Ro rental was recorded as accrued or paid for the use of th© property by th© Union Pacific Railroad Company.3 ^ I

44 Valuetion Reports 203* , p. 9 9 ^

496 Th© company owned on date of sale a railroad of 37.50 miles extending from Mencken to Onaga, Kansas. In addition* it owned a partially constructed road between Onaga and Carden, Kansas*

The property of this company

had been acquired by construction during 1904-1906*^ The authorized capital stock was #1,740,000 par value, shares of #100 each, classified a© common*

Of

the amount authorized, #174,000 was Issued at par in part payment of nonnegotlable debt to affiliated companies and was outstanding on date of ©ale*

The company Issued #1,700,-

000 par value of first-mortgage 6 per cent bonds in part payment of nonnegotlable debt to affiliated companies, all of which were actually outstanding on date of sale, and were canceled by the successor company*

The company incur­

red to date of sale a nonnegotlable debt to the Union Pac­ ific Railroad Company of #2,226,009.17, classified as open accounts; of this sum, #1,980,713.73 had been repaid, leav­ ing #247,295.44 yet due*2 The Investment of the company in road, Including land, no equipment being owned, on th© date of sale was stated In its books as $2,121,295.44.

This represented a cash

outlay for construction of #2,004,137.11 &&& #120,390.83 as interest on money borrowed from th© Union Pacific Railroad Company— offset by credits as follows: 1

2

44 Valuation Reports 210* Idem*

$2,932*56 the

497 unexpended portion of #10,000 appropriated by th© city of Onaga, Kansas, to acquire station ground, and cash sub­ scriptions of |300 received from citizons of Della, Kansas, 1 toward the purchase of station ground#

^

44 Valuation Reports 211.

498 ^ ♦.....Joseph and Grand Island

Company

The St* Joseph and Grand Island is incorporated in both Kansas and Nebraska, with its principal office at Blwood, Kansas, and its general and adiuiniatrative office at St* Joseph, Missouri#1

It i© controlled by the Union

Pacific Railroad Company through ownership of 94*42 per cent of its capital stock*2 The recorded mileage owned by the St. Joseph and Grand Island Railway Company amounts to 258.40, of which 251*55 miles were acquired by consolidation and 6.85 males by construction*3

Th© main line extends northwesterly

from St* Joseph, Missouri, to Grand Island, Nebraska, a distance of 251*35 allies, of which 138 miles is In the ©tat© of Kansas*

A branch line of 7 miles in Kansas

extends from Stout to Highland.^ The property of the St* Joseph and Grand Island was operated by its own organization from the dates of acquisition to December 31, 1917*

From January 1, 1918,

to March 1, 1920, its common-carrier property was operated by th© United states Railroad Administration*

Since that

time it has been operated again by its own .management* Th© St. Joseph and Grand Island was incorporated February 23, 1897, in Kansas and Nebraska as a consolidation 44 Valuation Reports 340. &a of June 30, 1919. 2 Idem* 3 Ibid*, p* 342* 4 tmfon Pacific Railroad Company, Valuation, Land and Tax Department, Omaha, Nebraska, Unpublished leport, August 15f 1939#

\

499 of the St* Joseph, Hanover & Restern Railway Company and the Grand Island* Hastings & Southeastern Railroad Com~ pany*^

Thes© companies had been incorporated for the

purpose of reorganizing the St* Joseph & Grand Island Rail­ road Company, which had been sold at foreclosure to Frederic P* Olcott, chairman of a reorganization committee; it was immediately conveyed by Olcott to the above-named companies which shortly thereafter consolidated to form the St* o Joseph and Grand Island Hailway Company* Th© St. Joseph and Grand Island and the three companies named above, together with their predecessors (of which one underwent a change of name) total eleven corporations— all domiciled in Kansas, and comprise the line of Kansas corporate succession culminating in the St* Joseph and Grand Island as at present constituted* The names of the corporations (in Kansas), the respective dates of incorporation* and for each predecessor 3 the date and manner of succession follow:"^

i ? 3

44 Valuation Reports 340. Ibid** p* 353* Union Pacific Railroad Company, Valuation, Land and Tax Department, Omaha, Nebraska, Unpublished Report August 15* 1939*

500

Table 15 Kansas Incorporations of The St* Joseph and Grand Island Hailv; NO.

mim

X. fhe st* Joseph and Grand Island Hallway Company*

INCORPORATION

Company SUCCESSION

General laws of Kansas and Nebraska, through articles of consolida­ tion dated Feb* 22, 189?: filed in both states Feb* 23, 1697#

2*

St* Joseph, Hanover & Western Railway Company*

General laws of Kansas, Dec# 28, 1896*

Consolidated February 22, 1896 with Grand Island, Hastings &■Southeastearn Railroad Company to form 1*

3*

St* Joseph k Grand

General laws of Kansas and Nebraa&a through articles of consoli­ dation dated June 22* lS$5i filed in Kansas June 22, 1885; in Nebraska June 23, 1885*

Sold at foreclosure Feb# 16, 1887, after re* ©eivershlp begun Goto** bar 13, 1893,'to Frederic ?.# Olcott, who, on. same date, conveyed title in Missouri and Kansas properties to 2, and laNebraska to the Grand Island, Hastings k South* ©astern Railroad Company#

Island Railroad

Company*

k*

St*

Joseph and Marys** Till© Railroad Company*

General law$ of Kansas, June 11, 18$5*

Consolidated June 22, 1885# with the Grand Island and Marysville'Railroad Com# pany, to form 3*

%

The St. Joseph and Western Railroad Company*

General lawk of Kansas and Hebraskk, through articles of! eonsell** dation &ate|l March 30, 18771 filed in Kansas, April 21, 1$77; in

Sold at foreclosure ■ June 19i 1885, and June 22, 1865 $' after receivership begun January 1884# to James H* Benedict, Francis K. Pendleton, and Isaac H* Bromley* who conveyed • title in the Kansas- prop# ©rby to 4, and in the Nebraska- property to the Grand Island and Marysville Railroad Company, June 22, ' 1885#

N ebraska Dep.* 5 , 1879#

501 ho.

mm

INCORPORATION

SUCCESSION

6* The Saint Joseph and Pacific Railroad Company#

General laws of Kansas, August 1, 1S?6*

Consolidated March 30, 1877, with 7 to form 5*

7. Kansas and Nebraska Hallway Company of Kansas *

General laws of Kansas, August 1, 1876*

Consolidated March 30, 18??, with 6 to form §*

8#

St* Joseph and Denver City Railroad Company {of 1866).

General laws of Kansas, through articles of eon** solidation dated Aug# 11, 1866; filed Septem** bar IS, 186?*

Gold at foreclosure Aug* 30, 1876, after re* ceiverahip begun June IS, 1875, to George J* Forrest, J* Augustus Johnson, and John J* McCoofe, as purchasing committee, who, on Septem­ ber 23, It?6.# conveyed a portion of the property to 6 and the remaining portion to 7*

9.

St* Joseph and Denver City Railroad Company (of 1862)*

Gee 10#

Consolidated August 11# 1866, with 11 to form §.*

10* Marysville or Palmetto and Roseport Railroad Company*

Special Act of Terri# torial Legislature of Kansas, Feb* 1?, 1857*

Name changed to 9, May 12, 1862*

11*

General laws of Kansas, January 17, 1666*

Consolidated August II, 1866, with 9 to form 8*

Northern Kansas Railroad Company*

502

The 3t* Jqs.eph* Hanover & Visat era Hallway ComM S £ was Incorporated Deoomber 28, 1896, in Kansas.1

Tiie

Grand Island, Hastings & Southeastern Railroad Company was Incorporated December 24# 1896, in Nebraska.

2

These

companies did not maintain any accounting records, issue any securities or incur any other Indebtedness or construct or operate any railroad property**^

They were short-lived

corporations which were created by a reorganization com­ mittee to take title to the property owned by th© St. Joseph k Grand Island Railroad Company and, in turn, to consolidate as the St. Joseph & Grand Island Railway Company* The railroad of the St. Joseph & Grand Island Railroad Company, which extended from St* Joseph, Missouri, to Grand Island, Nebraska, about 252 miles, had been sold at foreclosure February 16, 1897, to Frederic P. Olcott, chairman of a reorganization committee*

On. the same day

Olcott conveyed th® Missouri and Kansas portions of the property to the St. Joseph, Hanover & Vestern Railway Com­ pany, and th® Nebraska portion to the Grand Island, Hastings & Southeastern Railroad Company.**

By articles of consol­

idation dated February 22, 1897, these two companies con­ solidated to form the 3t* Joseph and Grand Island Railway Company* * i

3 4

44 Valuation Reports 355* Idea. idem. S H « . PP* 355-356.

503 The St. Joseph fo Grand Island Railroad Company was incorporated la Kansas and Hebrask© through articles of consolidation (dated June 22, 1885) filed by the St. Joseph and Marysville Hailroad Company and the Grand Island and Marysville Hailroad Company#3* The property of this company was operated by its own organisation from the date acquired to January 1, 1890, and from January 1, 1892* to October 12, 1893*

It was

operated by the TJhlon Pacific Hailway Company from January 1, 1890, to December 31, 1891, and by receivers from Oct­ ober 13* 1893* to February 16, 1897* the date of sale.2 The railroad on date of sale operated 231#55 miles of line and extended from St. Joseph, Missouri, to Grand Island, Nebraska*

Of this, 250.27 miles had been

acquired from the St* Joseph and Marysville Hailroad Com­ pany ©ad the Grand Island and Marysville Railroad Company, the remaining 1.28 miles had been acquired from The Saint 3 Joseph Bridge Building Company. The authorised capital stock was $4*600,000 par value.

Of this #4,556,100 was issued:

#4*056,100 for

property acquired in the consolidation of 1885, and $500,000 for property acquired from The Saint Joseph Bridge Building Company.** 1

44 Valuation Reports 356. \ Maa* ? nss. 4 Mem.

504 Of the $8,713,592*04 funded debt outstanding at date of sale, #8,678,992*04 was exchanged under the plan of reorgani&ation for securities of the successor company.

Disposi­

tion of the remainder, 134,600 was not ascertained.^ A condensed summary of the income accounts for the period toy l t 1885, to February 28, 1897, follows; railway operating revenues, #11,364,407.10; railway operat­ ing expenses and railway tax accruals, #8,221,338.59; non­ operating income, #915,228.83; and deductions from gross income, #5,157,904*33#

An income debit balance of #1,099,**

506,99 was transferred to profit and loss.

The profit and

loss account showed, in addition to the #1,099,506,99 noted, miscellaneous credits of #400*

There existed, then, a net

debit balance of #1,099,106*99*2

Ho dividends were declared,^

The investment of the company in road and equip­ ment, including land, on date of sale was stated In its boohs as #13,520,599*73, separated as follows;^ For property acquired in the consolidation of 1885s Capital stock Issued, per value Liability for conversion of capital stock of The St. Joseph and Western Hailroad Company, par value

i

44 Valuation Reports 357*

|

Ibid.. P. 358.

*

Idem* Mm*

#4,056,100.00

43,900*00

505 funded debt of The St. ^oseph and Western Rail­ road Company assumed, 6 575 000*00 par value Allowance for past-due interest on certain first-mortgage bonds ass timed 848,226*21 Recorded money outlay for expenses of reorgan­ ization committee and disbursements of Special Master in connection with foreclosure and sale of property of The St* Joseph and Western Hailroad Company 38,657*90 Current liabilities of The St* Joseph and Western Railroad Company assumed or paid, recorded amount 18.113.03

,,

fll.579,997.14

For property purchased from The Saint Joseph Bridge Building Company} Capital stock issued, par # 500,000,00 value Funded debt of The Saint Joseph Bridge Building Company assumed, par value 784,000.00 Current liabilities of The Saint Joseph Bridge Building Company assumed or paid 7.419.34

1,291,419.34

For equipment and additions and betterments, recorded money outlay} Road Equipment Total Less retirements, credited at

Net of above Items

$ 718,413.68 269.049.41

987.463.09 #13,858,879.57 331.480.15

#13,527,399.42

506 Other items.

Credits;

Adjustments of book values of securities owned Cash donations Income from unfunded securities and accounts and from funded debt held in treasury Frofit on track material sold Traok*crossing privilege Total, other credits

,025.18 338*75

27,381.58 1,410•21 5.000.00

,155.72

Charges; Discount on funded debt Expense of issuing bonds Recorded outlay in conneotion with retire­ ment of old track material and relaying of new rail

&ukll*2A

Total, other charges

*50.356,03

Het credit Total recorded as of date of sal©

2.256.75 2.683.75

&*2SL

#13,520,599.73

Th© Investments of the 8t* Joseph & Grand Island Railroad Company in other companies on date of sal© were stated In its records at a total book value of 197*800; here were carried stocks of affiliated carrier corporations of #1,948,500 per value, Th© 3t. Joseph and Marysville Hailroad Company i was incorporated June 11, 1885, in Kansas, Th© Grand Island and Karysvill© Railroad Company was Incorporated ^

44 Valuation Reports 359#

June 12* 1865» in N e b r a s k a T h e s e oompanies were short­ lived corporations which were organized by a reorganization committee to take title to the property formerly owned by The St* Joseph &

Railroad Company, and to consolidate

to form the St* Joseph & Grand Island Railroad Company* They did not maintain any accounting records, issue any securities or incur other indebtedness; neither did they own or construct any railroad property*^ The railroad of The St* Joseph and Western Rail­ road Company which extended from limed, Kansas, to Grand Island, Nebraska, about 252 miles, had been sold at fore­ closure June 19* 1685* and June 22, 1885, to James M* Benedict, Francis E* Pendleton, and Isaac H* Bromley*

These

individuals on June 22, 1885, conveyed the Kansas portion of th© property to the St* Joseph and Marysville Railroad Company and the Nebraska portion to the Grand Island and Marysville Railroad Company*^

These two oompanies con­

solidated June 22, 1885, to torn the St* Joseph & Grand Island Railroad Company* The Saint Joseph and Pacific Railroad Company and the Kansas and Nebraska Railway Company of Kansas wore in­ corporated August 1, 1876, in Kansas.^

The material

reviewed does not Indicate that they maintained any accounting records or constructed or operated any railroad

50a property.

They were short-lived corporation© which were

organised by a purchasing committee to take title to the property formerly owned by the St, Joseph and Denver City Hailroad Company (of 1866) and to consolidate as fixe St, Joseph and Western Hailroad Company,**" Th© railroad of the St, Joseph and Denver City Hailroad Company (of 1866) which extended from Klwood, Kansas, to Heatings, Nebraska, about 227 miles, had been

sold at foreclosure sale August 30, 1876, to George J, Forrest, J, Augustus Johnson, and John J. McOook, a purchasing committee.

On September 23, 1876, these individ­

uals conveyed that portion of th© property extending from Elwood to Marysville, Kansas, to Th© Saint Joseph and Pacific Hailroad Company, and th© remaining portion, ex­ tending from Marysville, Kansas, to Hastings, Nebraska, to the Kansas and Nebraska Railway Company of Kansas,

These

two companies were consolidated on March 30, 1877# to form

3 Th© St* Joseph and Western Hailroad Company*' The records of th© successor indicate that Th© Saint Joseph and Pacific, for th© purpose of acquiring

property from its predecessor, issued securities as follows; capital stock with par value not ascertained; first-mortgage 7 per eent bonds, $1,900,000$ and second-mortgage 7 per cent

bond®, 11,200,000# i ?

The Kansas and Nebraska Railway Company

44 yaluation Report® 362* Idem#

3 S'iieS*

509 of Kansas issued;

capital stock, par value not ascer­

tained; first-mortgage 7 per cent bonds, #1,900,000; secondmortgage 7 per cent bonds, #1,200,000*

The successor com­

pany issued its stock, par for par In exchange for the undetermined amount of stock, and assumed the funded debt#^ Th© st* Joseph and Western Hailroad Company was incorporated in Kansas and Nebraska under articles of con­ solidation dated March 30, 1877, and filed by The Saint Joseph and Pacific Hailroad Company and the Kansas and Nebraska Railway Company of Kansas;

filed in Kansas, April 2 21, 1877, nnd in Nebraska, December 5, 1879* The property of this company was operated by

receivers from th© date of organization to May 27, 1879# and from January, 1884, to June 19, and June 22, 1885, the dates of sale*

It was operated by its own organization from

May 27, 1879, to January 31, 1880, and by the Union Pacific Railway Company from the latter date to December 31, 1883*3 The property owned consisted of 251*68 miles of railroad located in Kansas and Nebraska, extending from Elwood, Kansas, to Grand Island, Nebraska,

Of this, 22?

miles had been acquired from The Saint Joseph and Pacific Railroad" Company and the Kansas and Nebraska Railway Company of Kansas in the consolidation of those companies, and 24*68 miles from the Hastings and Grand Island Railroad Company t 44 Valuation Reports 362. 2 Ibid.. P. 360. ? ips* Idem*

510 Th© authorized capital stock was #10,000,000, shares #100 par value each, classified as eomoa* this, #3,580,400 was Issued:

Of

$2,780,400 was issued for

property acquired in the consolidation of 1877, and #800,~ 000 for property purchased from the Hastings and Grand Island Railroad Company*

This stock was exchanged for a

like amount of stock of the successor corporation** Stock liability to the amount of #519,600 was Incurred for the conversion of capital stock of predecessor companies, all of which was unconverted on date of sale* Th© records of the successor company indicate that ©11 but 143,900 of such liability was discharged by It#

The com­

pany assumed #6,575,000 par value of funded debt of the consolidating oompanies, all of which was outstanding# The company also assumed $113,000 par value of receiver1© certificates of the St. Joseph and Denver City Railroad Company (of 1866) in consideration of an unapportioned part of property of the consolidating companies#

These were

retired through th© normegotlabl© debt account** The company incurred open account indebtedness to th© Union Pacific Railway Company, aggregating #166,423*89, as a consequence of the following:

additions and better­

ments to road and equipment, 141,798*72; receiver*s certif­ icates retired, #133,000; and settlements of receiver*s account, #11,625.17* 1 2

This was repaid through net credit

44 Valuation Reports 360* Idem*

511 from operations, $281,571>07* and as a consequence of other considerations of $7,252.95, a total of #288 ,824.025 thus a balance of $122,400.13 was due this company on December 31, 1883,1

While th© accounts of this company do not record nonnegot iable debt# the Union Pacifio Railway Company recorded advances to The St* Joseph and Western Hailroad Company in open account subsequent to December 31, 1883, aggregating #246,905*73:

cash, #20,022; payments for equips

ment, $42 ,000 ; and net deficit from operations, #183,883*?$* After deducting the balance of #122,400*13 detailed above, the Union Pacific Hallway Company recorded the ad­ vances settled as follows;

cash, #120,419*36; balance

of #4,086*09 sold by receivers of the Uhion Pacific Hail­ way Company for proceeds of #6*00, resulting in a reminder of #4,080*09, which was transferred to profit and loss* A condensed stuunary of the income accounts for th© period October, 1879, to December 31, 1883, follows; railway operating revenues, #3,493,664*91; railway operat­ ing expenses and railway tax accruals, #3,149,388.61; deductions from gross income, #3,662,211*06; and a net income debit balance# therefor, of #3,518,134*76 transferred to profit and loss.

The profit and loss accounts for th© same

period show these items:

miscellaneous credits, 1340; net

1

44 Valuation Reports 361*

2

M m .

51 2

debit balance transferred from income, #3,518,134*765 misoellaneoua debits, #98*74; &&d total debits, #3,518,233.50%

The net debit balance was, in consequence, 13,517,893.-

JO on December 31, 1883#^

Ho dividends were declared.^

As of December 31, 1883, the total of the invest­ ment in road and equipment was #10,827,498.72, analysed as follows i^ For property acquired in the consolidation of 1877% Capital stock issued, par value #2,780,400 Liability for conversion of capital stock 519,600 Funded debt assumed 6,200,000 Receiver*s certificate© assumed 113.000

# 9,613,000#00

For property purchased from Hastings and Orand Island Railroad Company* Capital stock Issued Funded debt assumed

#800,000 375,000

1,175,000*00

For additions and betterments: Honnegotiable debt

42.068.72

Total

#10,830,068.72

Less credits: Property retired For track crossing privilege Total on December 31, 1883 i ?

44 Valuation Reports 361. Urn*

X S & » PP* 361-362*

#2,300 2?Q

, , 2#520*00 #10,827,498.72

513 3o much had been written and so many speeches had been mad© on the subject of railroad transportation, that the people of northeastern Kansas, not unlike the people of other sections of the United States, became enthusiastic concerning th© future of their commonwealth and of the possibilities that railroads seemed to prophesy* On February 17» 1857,^ by a special Act of the Territorial Legislature, th© Marysville or Palmetto and Roseport Hailroad Company was incorporated and granted power to construct a railroad from Marysville or Palmetto City to Roseport, in the territory of Kansas, connecting with the Hannibal and St* Joseph Hailroad* Th© line from Blwood to Wathena, a distance of 4*6 miles, was completed and placed in operation on April 28, 1880*

On that date th© first locomotive in the present

State of Kansas, the "Albany," made its maiden trip between those points# 3 It was a gala day.

For miles around people cam®

to see this strange sight and the Blwood FyeePreas in its issue of April 28, I860, told th© story In the following language: *0n Monday last th© directors of th© JSlwood & Marysville railroad placed on their track a locomotive, the »Albany,1 an engine which had i Laws of Kansas Territory*, p. 193 (1857)* a WrrSer""Sanle1 W*, opTolt** p* 246* 3 schmidt, 1* 0*, "Story of the Union Pacific,” in “ ‘ State Journal* October 30» 1935*

514 been used from Boston to Missouri, as railroads have successfully stretched their length toward the aetting sun* wGn Tuesday several oars were brought across th© river and a large concourse of people gathered to celebrate the actual opening of th© first section of th© great Pacific road# "Col* M. J# Thompson, president of the Elwood & Marysville road; W# F. Hall, president of the St* Joseph & Topeka road; Gov* R* M* Stewart, of Missouri, and others addressed the crowd on the great topic of th© day* "The speakers were eloquent and f©llcitious in their remarks, and the congratulations were re­ ceived with mighty cheers# *•About 4 o#clock the engine was coupled to the cars* The oars were crowded by a dense mass of m&n and amid th© ringing of bells, shrill screeches of whistle© and deafening cheers, the first train of car© rolled over a Kansas railroad. "The people wore assured by the directors that by th© first of July trains would run to Troy and that during the present season th© road would be ex­ tended thirty or forty miles west." Alas, fate in th© form of th© Civil War Intervened to block extension that year to the westward*

In a short

time th© engine was ferried back across the river#

Farmer©

hitched oxen to th© flat cars to haul wood and, finally, the tie© rotted and sprouting oottohwoods grew up between th© rails* On May 12, 1862,1 th© name of th© corporation was changed from Marysville or Palmetto and Roseport Railroad Company to St* Joseph and Denver City Railroad Company* This company did not construct any road.^ *

*

44 Valuation Report a 341* 342.

ibilv; o?ig?r*

The

515 i»ea Incorporated January 17, 1866,

This

corporation constructed no road, likewise. On August 11, 1 1866, the St* Joseph and Denver City Railroad Company (oj? 1862} end the northern Kansas Railroad Company con­ solidated, forming the St* Joseph and Denver City Kailroad Company (of 1866) * Th© consolidated company con­ structed lines from Watheaa northwestward to the Nebraska State line in 1868-1872, a distance of 137*4 miles.2 On July 23, 1866,^ Congress passed an Act grant­ ing lands to the State of Kansas to aid in the construction of the northern Kansas Railroad and Telegraph Company.

The

grant was mad© "for the us© and benefit of the Saint Joseph and Denver City Railroad Company/* which was to effect a junction with the Union Pacific Railroad, or any branch thereof not further west than the one hundredth meridian of west longitude.

The railroad was to receive "every alternate

section of land designated by odd numbers, for ten section© in width on each side of said road, to the point of inter­ section. ** Upon certification by the Governor of Kansas that the road was completed for ten consecutive miles, the Sec­ retary of the Interior was to issue patents to the designated number of acres as "lie opposite and coterminous with the said completed sections.** Should there be an insufficient

* 3

Fir., ium^q Report» p. 126 (1883)* tfnlted States Statutes at L a m © , vol. 14, p* 210.

516 ©mount of land within ten miles, the secretary of the Interior eould select lend within twenty miles from the line of th© road. The road received 455,764.39 acre© under this grant and disposed of it for #1,205*531.32.1 By the Act of September 4, 1841,2 Congress granted to certain designated states, and each public-land state admitted to th© Union thereafter, 500,000 acres of public lands for specified internal improvements.

This grant

was aocepted by th© State of Kansas in 1866,^ the legislature decreeing that the proceeds from the sale of said land should be divided between certain designated railroads, the northern Kansas Railroad Company being one of those named# The records of the Jt* Joseph and Denver City Railroad Company (of 1866) Indicate th© receipt of municipal, county, and precinct bonds aggregating #929,000 par value, for which th© company issued an equal amount of capital stock.^

Th© company also issued #1,400 in stock for labor,

and stock to th© amount of #127,500 was recorded as issued in amount® of #42,500 each to Doniphan, Brown, and larshall counties for their proportionate share of lands received from th© ©tat© of Kansas*

In addition a total of #1,443,600

was issued as a bonus in connection with the sale of v3*609,000 par value of bonds# ^

f f

Nemaha county voted to subscribe

44 Valuation Reports 351* ffiitit^ l a f l r i ^ t ^ © at La rase* vol. 5, PP* 453-455* Saws' 'oFlisas'.'*p* 142 (1866)* 44‘1"VolWtlon ^©ports 352.

517

for #125,000 of th© stock, issuing bonds in payment*

Later

th© county refused to pay it© subscription, and an attempt to collect it by legal means failed,*** Eighty miles of road were placed in operation by October, 18?0*

In October, 1871, 128 miles were in operation,

and th© next year Hastings, Nebraska was reached,

The total

amount expended In building the road to this point was #5,449,620,77; of this sum the stockholders had provided #1,400; State and municipal aid, #782,727*10; and the remainder, #4*665,493*67, had been obtained from the sale Of #6,755,900 mortgage bonds.^ The 3t* Joseph and Denver City Railroad Company was placed in receivership June 18, 1875*

It was sold under

foreclosure August 30, 1876, to George J* Forrest, J. Augustus Johnson, and John J* McGook as Purchasing Committee, who con­ veyed on September 23, 1876, to the Kansas end Nebraska Rail­ way Company of Kansas, incorporated August 1, 18?6, the portion west of Marysville, conveying on the same date to Th© Salat Joseph and Pacific Railroad Company, incorporated August 1, 1876, that portion of the railroad east of Marys­ ville *3

As the Federal judge refused to release the property

until taxes incurred during receivership were paid, the property was operated by the receiver until May 27, 1879* 1

The State, ex rel. The 3t. Joseph & Denver City Kailroad

2

Company, v. ComiBa loners of Nemaha Oomit.y. Kansas. 10 j kBgaa-j;69tl,73yf ; ; „4, . Poor, Henry V., Manuel of the Hallroads ot tne onlte* „

,

States, p. 705 (1875-1876)'. 44 W l u a tion Re nort© 341*

518 The Kansas and Nebraska Railway Company of Kansas

and The Saint Joseph and Pacific Railroad Company did not construct any line.1

They were consolidated on March 30,

1877 to form The St. Joseph and Western Railroad Company, articles of incorporation being filed in Kansas, April 21, 2 1877* Likewise this corporation constructed no line of 3 road. On January 3* 1884, The 3t» Joseph and Western Railroad was placed in receivership, and on June 22, 1885, It was sold to James H. Benedict, Francis K. Pendleton and Isaac H. Bromley, who on the same date conveyed the property in Kansas to the St. Joseph and Marysville Railroad Company, incorporated June 11, 188$ On June 22, 188$,^ the St. Joseph and Marysville Railroad Company consolidated with th© Grand Island and Marysville Railroad Company to form the St. Joseph & Grand Island Railroad Company, whose articles of incorporation were filed in Kansas on June 22, 188$.

This new consolidated

company was placed in receivership on October 13, 1893, and continued thus until December 23, 1896.

On February 16,

1897, it was ©old under foreclosure proceedings to Frederic ?, Olcott as Chairman of the committee of First Mortgage Bondholdex*s who conveyed the property in Kansas on the same 1

44 Valuation Reports 362. Ibid.. p. '341. ? Ibid.. P. 360. i jbid.» P* 341.

%

i

®

m s * > p* 359* ’ U nion Pacific Railroad Department,

15, 1939.

Omaha,

Company, Valuation, Land and Tax Nebraska, Unpub 11she d Rep o r t . August

519 date to the St. Joseph, Hanover & Western Railway Company, incorporated December 28, 1896*1

On February 22, 1897,^

this company consolidated with th© Grand Island, Hastings & Southeastern Railroad Company to form The St. Joseph and Grand Island Railway Company, the present corporation, whose articles of incorporation were filed in Kansas, February 23, 1897*

1

2

44 Valuation Reporta 352. Idem.

520

Chapter IV ABANDONMENT OF BRANCH AMD OTHER RAILROAD MILEAGE IN KANSAS

Abandonment of railroad mileage in Kansas prior to the decade of the thirties was limited*

Few records of

abandonment are to be found prior to the time th© Inter­ state Commerce Comalsslon began to take the matter in hand*

Railroads and Railroad Commissions reported progress

in mileage constructed* but the matter of mileage abandoned seemed to be distasteful; it did not contribute, at least* to a picture of progress* Undoubtedly some short lines were constructed in order to obtain bonds and other aids in construction and then abandoned*

Others were economically unsound at the

time of construction* in many instances due to th© fact that they paralleled other roads:

illustrative of this is

The Chicago, Kansas and Nebraska Railway Company* which constructed in 1888 a line from Herington to salina via Abilene* Kansas* paralleling the lines of Th© Chicago* Kan­ sas & Western Railroad Company which had built 22*55 miles of line from Abilene to Salina in 1887— 'this mileage itself paralleling a line laid down in 1867 by the Union Pacific Railway Company* Eastern Division* Other properties were built in th© western half of th© state during th© "boom* period of railroad construction in Kansas* 1885-1890* and these had no alternative but to

521

cease operations when the "boom" collapsed;

such was

th© fete of the Dodge City, Montezuma and Trinidad* incor­ porated April 18, 1887* which constructed 26*40 miles and ceased operations in 1893 .^ The Scott City Northern Railroad Company filed Its charter on August

3, 1910{2 during the fall of that

year and th© first six months of 1911, th© company con­

structed a line from Scott City, on th© main lin© of th© Missouri Paoifie, northward to Winona, on the main line of the Missouri Pacific, a distance of 53 miles*

3

This

line passed through a portion of Scott county which had

a population density in 1910 of 4*3 par square mile* and the county of Logan, with a population density of but 3*9*

The total population of th© two counties, indeed*

was merely 8,121,^ with a majority living in or near Scott City and Oakley— the latter on the main line of the Union Pacific and approximately 20 miles from the line of the Scott City Northern*

After two years of unsuccessful

operation the name of the company was changed on July 16 ,

1913 to th© Colorado, Kansas and Oklahoma Railroad Company©x Changing th© name failed to change traffic conditions and the road soon ceased to exist*

^

Board of Railroad Commissioners, Kansas, Eleventh Annual

4 £7 0 4 254* 260 (October© 1936 )* , U

5

w

U

y c ^

W V

.

w y

■ n.i



" ,l" "

.......................

Secretary of State, Kansas, Corporations * vol* 81, p* 270*

522

Th® St. Louis and San Franolsoo Hallway Company in 1877 abandoned 3 miles of the Joplin Railroad Company, the abandoned segment serving from Litchfield Junction to Litchfield, Kansas.1

in 1891, the St, Louis and San

franclsoo purchased from L, D. Latham and Company, con­ tractors, a branch line of 2 miles in length extending from a connection with their road to Hunnewell, Kansas, This branch was abandoned in 1891,2 According to Poorf& # th© Topeka, Western and Marysville Railroad Company abandoned their H u © of road, 5 miles, and took up the track in 1892-1893*^

It is stated

by the same authority that the Topeka, Okmulgee and Gulf Railroad Company abandoned 16 miles of reed on May 20, 1896,

L

road.^

and that the Denver, Wichita and Memphis junked its During 1894 the Kansas city, Clinton and Spring­

field abandoned 11*49 miles of road extending from Cedar Junction to Olathe, Kansas#

6

This road had been acquired

from th© Pleasant Hill and DeSoto Railroad Company In 1885 and was not operated after that time* The L&vfrenoe and Emporia Railroad Company, incor­ porated in 1869 to construct and maintain a railroad and telegraph line from Lawrence, in Douglas county, through \

? 3 . \

5

41 Valuation Reports 306, 513# Ibid *"% p# "306# ?oor, Henry V*, Manual of the Railroads .of the. United States* p* 94 U 9 W 7 ~ Idem# Ibid** p. LXXJ* "0' %luatlon Reports 728#

523 the county of Osage to Emporia, in Lyon county, completed its line from Lawrence to Carbondale, 31.90 miles*

March

22 , 1894, that part of the road which had been built was

abandoned.^ On December 10, 1895, The Wichita and Western Bailway Company abandoned a line of road extending from Pratt to th© west line of Kiowa county, Kansas, a distance 2 of 44*85 miles* This line was paralleled by The Chicago,

Kansas and Nebraska’s line to Liberal*

Th© Wichita and

Southwestern abandoned 11*51 miles of road on December

15 of the same p m r :

2,62 miles extended from Wellington,

Kansas, to a connection with the Southern Kansas Railway 3 Company and 8*89 miles from Sedgwick to Halstead* The Chicago, Kansas & Western Railroad Company abandoned on May 3, 1896, a 35*23 mile segment of its road paralleled by the Denver, Memphis and Atlantic from Scott City to Selkirk, in Scott and Wichita counties, Kansas*^ This company also abandoned 3*23 miles between Ellinor and Gladstone; they also revised their line near strong City eliminating 5*94 miles of the former distance; they also eliminated 3*95 miles of line between Little Biver and 5 V‘ Holyrood through a revision of mileage* 1

2 I %

Board of Railroad Commissioners, Kansas, Fourteenth Annual Report, p, 19 (1896). 12? I* C. c7~213*

Ibid** Wem* Idem*

p,

217*

The Manhattan, A i m and Burlingame Railway Com­ pany was incorporated September 3, 1872,1 under the general laws of the Bbute of Kansas*

The company constructed a

line between the points named in the title and operated it from August 1, I860, until it was placed in receivership on February 1, 1395*

From the latter date to July

31, 1898, the property was operated by a receiver*

The

property was sold at foreclosure sal© April 13, 1898, and conveyed on June 23, 1898, to Adi el Sherwood, an agent . or trustee for the Atchison, Topeka and Santa Fe*

By deed

dated July 30, 1898, he conveyed that portion of the prop­ erty extending from Burlingame to Alma, Kansas to Th© Burlingame and Northwestern Bailway Company and abandoned the 22*39 miles which extended from Alma to Manhattan, Kansas, on August 1 of the same year*

2

In 1889, The Chicago,

Kansas and Nebraska Railway Company completed its line from McFarland to Belleville, Kansas*

This main line paralleled

from Alma to Manhattan the Manhattan, Alma and Burlingame, a stub road:

in the face of this handicap, the letter—

a weak line— could not survive# The Kansas, Southern A Gulf Railway Company ceased operation November 15, 1910*

The road as originally

planned was to extend from th© Canadian wheat fields to the Gulf of Mexico; actually 18 miles were constructed# \ %

127 I. C. 0. 208. ibid** pp. 208, 445* The Topeka State Journal, December 15, 1910*

3

525 This line was the only rail outlet for KestJEoreland, oounty seat of Pottawatomie oounty, and was built in 1898 by Pottawatomie oounty people, principally those living in Westmoreland,

In 1898 Book Creek township, in which

Westmoreland is located, voted #31,000 worth of bonds to aid in building the line.

The property was heavily mort­

gaged, and in 1904 the mortgage was foreclosed.

The line

was sold under order of the Federal court for #13,000, the eity of Westmoreland being the purchaser:

it issued

#15 ,000 worth of improvement bonds and used the money obtained to buy the railroad*

The trustees appointed

by the eity transferred th© road to a newly formed company for purposes of operation*

In 1908 th© company voted

bonds to extend th© road to Manhattan, where it would connect with the Chicago, Hook Island and Pacific and the Bhion Pacific#

Th© amount of bonds issued was $750,000,

and the property was mortgaged to th© American Trust and 1 Savings Bank Company* The road was not extended to Manhattan*

On July 16, 1914, the Westmoreland Interurban

Hallway was chartered to take over th© property of the above company which had been sold at receiver’s sale* latter corporation never electrified the road;

This

as motive

power, automobile® with flanged wheels were used#

This

operation continued for a few years and then was abandoned; th© property was ultimately sold for junk. ^

The Toneka Daily Capital# June 28, 1909*

526 On July 25, 1915,^ the Atchison, Topeka & Santa F© and th© Chicago, look Island and Pacific Railway Com­ panies entered into an agreement wh©x*©by the Santa F© would use 1Q.9? miles of line owned toy the Rock Island from a point near Solomon to one near Salina, Kansas, and th© Rook Island would use 10*33 miles of th© Santa F© trackage from near Abilene to near Solomon; in consequence, th© operation of parallel and now unused mileage was discontinued#

Th© segments of unused track

were scrapped# The Kansas Gity, Wyandotte & Northwestern Hall­ way Company was organised under th© general laws of Kan­ sas November 23, 1885#

From th© date of its incorporation

to February, 1339, the company placed in operation 141 miles of road, extending from Wyandotte to Seneca, with branches from Manager Junction to Leavenworth, and from Axtell to the Kanses-Netoraska line near Simmerfield#

On

March 24, 1890 , a receivership was instituted as a consequence of a foreclosure suit brought by the Farmers Loan & Trust Company, trustee of a mortgage executed January 2, 1388*

Newman Brb was appointed receiver*

Th© road

was sold, pursuant to a decree of th© Circuit Court of th© Baited States for the District of Kansas, on January 5» I894 , to George C# Smith and R* P# Waggoner, Purchasing Trustees for th© Missouri Pacific#

1 127 I. 0. G. 239.

On June 28, 1894, th©

527 Missouri Pacific deeded the property* to Th© Kansas City* Northwestern Railroad Company, incorporated under the gen­ eral laws of Kansas December 30, 1893* The Kansas City Northwestern Railroad Company was controlled by Th© Missouri Pacific Railway through stock ownership*

On January 18, 1910, the property was conveyed by

deed to the parent company, which operated the line until the receivership in 1915#

When the Missouri Pacific was reorgan­

ised in 1917, the Kansas City Northwestern was dropped from the Missouri Pacific System*

After operating for a year or

two, the Kansas City Northwestern was sold for scrap; it® terminal properties at Kansas City and Leavenworth were ac­ quired by the Missouri Pacific Railroad Company by purchase*^ Th© Atchison, Topeka & Santa Pe Hallway Company, on April 30, 1930,

o

was Issued a permit by th© Interstate

Commerce Commission for the abandonment of a line of rail­ road extending from milepost 61 plus 2,019 feet, south of Harper, in a southerly direction to milepost 69 plus 900 feet, north of Anthony, a distance of 7*79 miles, all in Harper county, Kansas#

The line in question, a part of a

branch extending from Hutchinson, Kansas, to Ponca City, Oklahoma, about 141 miles, was constructed in 1890 by th© Hutchinson & Southern Railroad Company#*^ 1 $ %

In 1898 th©

Reconstruction Finance Corporation, Railroad Division, Report on the Missouri Pacific System, p. 20 I'October, 1^3 57* 162 I. 0* 0* 474* For a complete history of this road see* 127 I* 0* C# 452#

528 properties of this company were sold under foreclosure, and in 1899 they were purchased by the Santa Fe*

There

was no record of any donations or grants in connection with the original construction of the line which was abandoned#

The service performed by the abandoned line

was continued by the closely adjacent line of the Kansas City, Mexico & Orient Railway, operated under lease by the Bant© Fe*

This adjacent line Is a part of th© Santa Fe’s

Fairview district#

Ascot, about midway between Anthony

and Harper, and the only point on the abandoned line at which there was a siding, receives its service on the adjacent line at Meyer, 1 mil© distant* The territory traversed is entirely agricultural, there being no incorporated cities or villages#

approx­

imately 300 people lived within 3 miles of the line#

The

Fairview district line has more uniform grades than th© abandoned line*

At no point wax*© th© two main tracks more

than 0*25 mile ©part, and, as all the traffic could be handled on one, th© operation of both was unnecessary# On June 16, 1930,^ Th© Leavenworth & Topeka Rail­ road Company filed an application with the Interstate Com­ merce Commission to abandon its entire mileage extending from Leavenworth in a general westerly direction to Meriden Junction, approximately 47 miles in Leavenworth and Jefferson counties, Kansas* i *

Constructed In 1881-1882,2 th© line was

170 I. C. C. 410. For a complete history of this road see;

llo 1# C* C# 512*

first operated by th© Kansas & Eastern Railroad Construc­ tion Company; later It was operated by the Atchison, Topeka & Santa Fe Hail Hoad Company and the tXnion Pacific Hallway Company* successively#

After a receivership which

began in April, 18%, and terminated in January, 1900, the property was taken over and operated by the Leavenworth & Topeka Railway Company*

After passing through another

receivership between March, 1916, and May, 191B, the line was acquired by The Leavenworth and Topeka Railroad Com­ pany#

The total population served by th© carrier did not

exceed 4,000# The line paralleled the Bnion Pacific and th© Atchison, Topeka & Santa Fe at distances ranging from 6 to 12 miles#

Humorous hard-surfaced highways traverse the

territory and, as farming was the chief industry, trucking was prevalent*

Service was discontinued on the western

most 10 miles of the line in 1926, due to a lack of traffic* The line was built with heavy grades, much curvature, and many bridges*

It was estimated that it would take at least

$200,000 to rehabilitate the property and, as the road had not paid out-of-pocket costs for several years, th© Com­ mission , on March 11, 1931, granted th© application of abandonment# Three applications were filed with th© Interstate Commerce Commission in 1932 for abandonment of lines in Kansas*

The Chicago, Burlington & Quincy Railroad Company

530 on August 25 , 1932,^ applied far permission to abandon a branch line of railroad extending northwesterly from a point 1*10 mile© north of Atchison, Kansas, to Rulo, Nebraska: of a total of 44*72 miles, 27*57 miles were in Atchison and Doniphan counties, Kansas, th® remainder, 17*15 miles, was in Richardson oounty, Nebraska*

The Hulo branch, as

it was called, roughly parallels the west bank of the Missouri River, and th© applicant had a line on the east sid© of the river* Construction of the branch was completed In 1871*

2

For about 28 years the applicant operated the road

under leas© from th© Atchison & Nebraska Railroad Company, but In 1910 became th© owner*

Th© road was laid with 56

and 66 pound rails and had excessive curvature, with maximum grades of 1*6 per cent in each direction*

A con­

siderable part of th© line was located along or near streams and under bluffs and was subject to frequent damage from floods, washouts and slides#

In other places It was low

and had poor drainage; maintenance was, therefore, difficult and expensive* Th© branch served an agricultural territory which supported a population of approximately 3,900*

From a

survey of branches known to be light-traffic lines, it was determined by th© applicant that the Eulo branch was its 193 1 . c. 0 . 233. ** For a complete history of this road sees

i

_ j_ _





143 I* G* G*

531

outstanding example of unwarranted drain on system revenues; maintenance was unusually costly and revenues were progres­ sively declining because of a continuing shift of traffic from railroad to highway* The number of passengers transported on the branch decreased from 3,499 In 1927 to 734 In 1931*

Carlot ship­

ments of corn, wheat and cattle, the principal commodities shipped on the line, decreased from 483 in 1926 to 139 in 1931*

At the time the application was filed, there

were 42 for-hire truck operators In th© territory, and there were also numerous trucks owned by farmer© and merchants— all of which transported both outbound and inbound freight to and from important distribution pointsi

among these

were 8b# Joseph, Missouri; Atchison, Kansas; and Falls City, Nebraska*

Use of the branch by the people of the

tributary territory had been, therefore, materially reduced through diversion of their travel and freight to motor vehicles operating on th© highways.

As there was little or

no prospect of regaining lost traffic, the applicant was permitted to abandon the segment# Application to abandon another branch line was mad© by the Atchison, Topeka & Santa ?e Railway Company on September 23, 1932.1

This line extended from Colony in a

generally southwesterly direction to Tates Center, approx­ imately 24*74 miles, all in Anderson, Allen, and Woodson

1 193 I. C. 0. 591.

532 counties, Kansas# Th© line was constructed in part by the Colony, Neosho Falls and Western Railroad Company;** in 1886 Th© Chicago, Kansas & Western Railroad Company assumed respon­ sibility for construction, completing the property August I, 1887*

Th© applicant acquired th© road on April

10, 1901, and operated it from that date as a branch line* All incorporated towns on the line were served by other railroads, and the branch had no connections except with the applicant’s main line at Colony. The population served by the carrier was approx­ imately 4,600* farming*

Practically the only industry served was

The land® in the counties traversed were largely

prairie, with some bottom land® along the Neosho River and various creeks*

Numerous improved .highways were available

to th® people in this territory, and the trucks were haul­ ing from 50 to 60 per cent of the Xess-th&n-oar-lot business* This road, with little prospect of regaining lost traffic and a burden upon system revenue, was abandoned by the owners with th© approval of the Coxrmlssion. The third branch line to be abandoned In 1932 was a Missouri Pacific property.

This road on December 1

applied to the Commission for permission to abandon part of a branch line or railroad extending from a point at or 1 2

127 I. C. 0. 505. Ibid.. pp. 216, 501.

533

th® south city limit® of Fredonia in a generally south­ erly direction to Peru Junction, approximately 40 miles, in Wilson, Montgomery and Chautauqua counties, Kansas.*1 The road was built in 1886-188? by the LeRoy & Caney Valley Airline Railroad Company,^ and title passed to the Missouri Pacific through reorganization of a predecessor company in 1917* The territory served by the line was devoted largely to stock raising and grazing and supported about 3,373 people*

The road had a maximum of 1*33 per cent

grad© northbound and 1.10 per oent southbound* still laid with th© original 56-pound rail*

It was

At one tim®

the line was used as a cut-off, since it was about 23 miles shorter than the company’s line via Bearing* The applicant attributed the loss of traffic on the segment to th© long-continued decline in the movement of stock from Oklahoma for grazing in the territory and to Increased us® of highway transports

it contended that

these changes made the service over th© segment of little importance to the public*

The Commission agreed with the

applicant, and the road was abandoned* On February 17, 1933,^ the St* Louis-San Francisco asked permission to abandon a branch line of railroad 8.40 miles in length extending from the Junction with the Frisco I 193 I. C. C. 659. i 40 Valuation Reports 567* * 199' CT53V'

534 mala line near Olathe in a general easterly direction to the end of the line at Stanley, Johnson county, Kansas* The branch originally formed part of a project undertaken in the early seventies to construct a railroad between Lawrence, Kansas, and Pleasant Hill, Missouri#3* In 1885, th© completed portion of this railroad was acquired by the Kansas City, Clinton & Springfield Railway Company, which operated it between Olathe, Kansas and Ash Grove, Missouri, approximately 155 miles, from May, 1886, to November, 1924*

On the latter date, th© Frisco began

operation under leas© and continued to do so until Sep­ tember 1, 1928, when it acquired the property* On October 1, 1928, operation was abandoned between Stanley and Belton, Missouri#

2

As a result of this,

the line remaining in operation on the west became the Stanley branch*

Trains were run only when service was

required by the two stations on the branch and, as the branch was of light construction, locomotives of the lightest type had to b© used# Of the local products, wheat end hay were shipped by rail, while livestock was moved by truck#

The territory

was amply supplied with paved highways and, being near Kansas City, a central market and distributing point, these roada were used by farmers and merchants, as well as by for-hlre truck operators, to deliver a major portion of 1 2

41 Valuation Reports 745* 145 X* 0 . 0 .379*

535 th© products from and to th® territory*

As It was judged

the branch did not render a necessary transportation service, abandonment was permitted. The Missouri Pacific Railroad Company on March 13, 1 9 3 3 applied for permission to abandon, (15 part of a branch line or railroad extending northwest from Fort Scott to Lomax, 90*5 miles, in Bourbon, Linn, Ander­ son, Coffey and Osage counties, Kansas, and, (2) part of a branch line extending generally westward from Mound City to LeRoy, 46*8 miles, in Linn, Anderson and Coffey counties* Th© Fort Soott-Lomax segment, was a part of th© Missouri Pacific’s Topeka branch extending from Topeka, through Lomax, Garnett, and Blue Mound, to Fort Scott, 130*5 miles*2

It was built in 1886-188? by the Kansas,

Nebraska & Dakota Railway Company,

It connected with

system lines at Lomax, Garnett, and Fort Scott.

Th© Mound

City-LeRoy segment was an Intermediate portion of th® Missouri Pacific*0 Madison branch extending from Madison to LeRoy and thence, by th© Inclusion of a short stretch of main-line track, through Blue Mound, Bound GIty, and Pleas­ anton, to Monteith Junction, Missouri, near Butler, Missouri, 104*4 miles#

The Madison breach was built in 1886 for the

St* Louis So Emporia Railroad Company and th© Interstate Railroad Company.^

\ 2 3

The Missouri Pacific acquired title to

199 I* 0. 0. 363, 40 Valuation Reports 527, Ibid.. p. 535.

536 the above-mentioned railroad properties in 1917 , through reorganization of a predecessor company# The Kansas, Nebraska and Dakota and the Interstate crossed at Blue Mound, both serving agricultural areas* Their primary market, both for products shipped out and inbound supplies, was Kansas City* Th© Kansas, Nebraska and Dakota was crossed by line® of tiie Mlasouri-Kaas&s-Tex&a and th© Atchison, Topeka & Santa F© Hailway Company*

Th© Interstate was also crossed

by these roads and, in addition, by th© St# Louis-San Francisco#

The segments were built primarily for the purpose

of developing the territory served and for many years much of the bridge traffic that might have been routed over them had been diverted, in th© interest of efficient and econ­ omical operation, to main-line routes* The proposal to abandon the above segment® resulted from a study of system branch lines by a management com­ mittee appointed by the Missouri Pacific*

This committee

reported that the lines in question traverse a generally poor agricultural country; that the demand for c o m and hay for use In cities had diminished because of displacement of the horse by motor vehicles; that the utility of th© line® had been affected also by a shift in population to the larger town® and by adverse economic conditions; the t much traffic had been lost to competitors using th© highway®; that there was no prospect of increase in the traffic on the

537

lines; and that* out-of-pocket loaves from operation of the segments imposed a serious burden on system revenues. The Kansas, Nebraska & Dakota was cheaply con­ structed through rolling territory and mostly across the drainage*

It had 105 bridges, including 97 wooden trestles,

aggregating 8,604 feet in length, and heavy grades.

The

track was laid chiefly with 56-pound rail rolled in 1885 # The Interstate was similar to the Kansas, Nebraska & Dakota as to location and type of construction#

Furthermore, the

territory traversed by the segments was well served by truck lines*

Whatever feeder value the branch lines once

m y have had had largely vanished because of effective and aggressive highway competition. The Commission granted the request for the abandon­ ment of th© Fort Scott to Lomax segment and the mileage from Blue Mound to LeRoy; it withheld permission, however, to abandon the 12 mile© between Blue Mound and Mound City, pending a trial period of operation.

At th© close of the

trial period, no improvement having been shown, th© com1 pany was permitted to abandon this section. The Atchison, Topeka & Santa Fe Railway Company on April 13, 1933,2 applied for permission to abandon a branch line of railroad extending from ^uenei&o in-a north­ westerly direction to Osage City, 19.45 miles, ell in Osage oounty, Kansas, \

2

212 I. C. C, 145. 193 X. C, C, 230, 629.

538

The line was constructed in 18863* and acquired by the applicant April 10, 1901, from which date it was operated as a branch line#

At its termini it connected with a main

line of th© Missouri Pacific and a main line of th© appli­ cant*

Th© main line of the former, extending from Kansas

City to Pueblo, Colorado, passes through Osag© City and parallels the branch, at no point being distant more than about 3 miles.

Lyndon, population 738, about 10 miles

from both Q,[email protected] and Osag© City and approximately two miles from th© Missouri Pacific station, was the only Incorporated town served by th© road.

Th© population of th© territory

tributary to th© branch was estimated at about 2,200# Th© records of the applicant showed that the traffic of th© branch had diminished to such an extent that there had been an operating loss for several years and that there was no prospect of future profitable operations because of highway competition#

Permission was given for

abandonment* The St* Joseph &, Grand Island Hallway Company and the Chicago, Hook Island & Pacific Railway Company, operating parallel tracks between Blwood and Troy, on May 17, 1933,2 filed a joint application with th© Interstate Commerce Comission asking for a certificate, (1) to permit th© Grand Island to abandon that part of its line from mile­ post 7*4, between Vfathena and Blair, to milepost 13*9 nt

1 2

127 I. C. 0. 501, 506. 199 I. C. c. 95.

539 Troy, approximately 6*5 miles, and the Rook Island to abandon that part of its line from milepost 0,27, east of Klwood, to milepost 7.0, between Wathena and Blair, about 6*73 miles; and (2), to authorise the Grand Island to operate, under trackage rights, over the Rook Island’sline between milepost 7*0 and milepost 13,47, approximately 6*47 miles, and the Hook Island to operate, under trackage rights,

o t er

the line of the Grand Island between milepost

0,67 and milepost 7*4, about 6,73 miles, all in Doniphan county, Kansas, This plan for joint use of facilities was urged by the applicants because of more uniform and favorable grades, as well as the elimination of difficulties arising from stream encroachment.

Objection was made to the abandon­

ment of the Grand Island’s line from Troy to Appleton, about 1,25 miles, as this segment served an Important apple-grow­ ing region,

The application was approved as requested

except as it applied to this short segment* The tJnion Pacific Railroad Company on July 1, 1933,X sought and received p©mission,2 (1) to abandon that part of its Leavenworth-Western branch extending from Knox, in the vicinity of Leavenworth, westerly to Clay Center, 143*156 miles, In Leavenworth, Jefferson, Atchison, Jackson, Pottawatomie, Riley and Clay counties, Kansas;^ (2) to I

* 3

202 X* C, C. 319* 207 I, 0 . 0 * 279* yor a complete history of this road see* Reports 205#

44 Valuation

540 abandon all of its Belleville branch, extending northerly* from Lawrenceburg to Belleville, 17*15 miles, in Cloud and Republic counties, Kansas;^ (3 ) to abandon that part of its Junction City branch extending northwesterly from Clay Center to Concordia, 33*81 miles, in Olay, Washington and Cloud counties, K a n s a s (4 ) to operate under trackage rights over a line of the Atchison, Topeka & Santa F© Hailway Company extending northwesterly from Miltonvale to to Concordia, 20*6 miles, in Cloud county, Kansas\ and (5) to construct a connecting track 800 feet long at or near Concordia to facilitate such operations# The first two segments of the Leav©nwortk-W©stern branch were constructed as a narrow-gauge railroad by The Kansas Central Railroad Company in 1872 and 1877#^

The

Kansas Central Railroad Company completed the line of road to Miltoaval© and ohanged the track to standard gauge in 1889 and 1890#^

The company was controlled on May 25, 1908,

the date of sal©, by the Union Pacific through ownership of its capital stock* The road served an agricultural population, with little or no increase in that population for more than 30 years#

The road was constructed through generally rough

country and followed the contours of the land# 1 2 1

l 5

It was

44 Valuation Reports 190* w ^ por a" complete history of this road see s 44 Valuation Reports 190# K valuation Reports 210* |Mi* » p. W . I S H * • v* 205.

5a constructed across the usual drainage and m a n y bridges had to be maintained# The territory tributary to the Leavenworth-Western branch w a s well supplied w i t h improved highways and there was considerable movement b y truck, both in- and outbound, between that territory and Kansas City, St* Joseph and other market centers*

The total volume of freight traffic handled

over the Junction City branch had

diminished-from 5$,579

tons in 1929 to 19,502 tons in 1932*

The total number of

passengers declined f r o m 10,676 in 1928 to 1,570 through those years*

The total volume of freight traffic handled

over the Belleville branch, had decreased f r o m 23,308 tons in 1928 to 8,749 tons in 1932*

The total number of pas­

sengers dropped f rom 3,829 in 1928 to 630 in 1932* In exchange for trackage rights over the Santa F© from Miltonvale to C o n c o r d i a , the Union Faeifio granted the Santa Pe the privilege of operating under trackage rights over its line between Abilene and S a l i n a , Kansas, approxi­ mately

23 miles, where the two carriers had paralleling

lines,^ The abandonment of the Leavenworth-Western left 24 small coimiunlties without rail connection*

Hon© of them,

however, was over 15 miles b y highway to stations o n other lines#

One community on the Belleville branch was left with­

out rail connection, but It was only 4 miles to a station on

1

199 I* C* 0* 609.

542 the Burlington railroad,

One community, located 3,5 miles

f r o m a station on the Burlington, was left without rail connection b y the abandonment of the portion involved of the Junction City branch. There was undisputed evidence presented at the hearing that the use of motor vehicles as a means of trans­ portation, in preference to the railroad, was general throughout the territory* The Missouri Pacific Railroad Company, in accord­ ance w i t h a n application filed in 1 9 3 3 was given permission to abandon a branch line of railroad extending from Yetes Center in a southeasterly direction to West Junction,

5,1

miles, in Woodson county, Kansas* The b ranch was constructed in 1886

as part of

the m ain line of the former Missouri Pacific Railway between LeRoy and Winton, Kansas*

In 1902-1903 a parallel line

w i t h lower grades wa s constructed east of Yates uenter and

most of the traffic was diverted to it.

Passenger service

was continued on the branch until July, 1928, and occasional freight movement© were made over it until January 1, 1930* After that date the track was used only for the storage of surplus cars.

There were no communities on the line.

Local

taxes of approximately #1,500 per year were being assessed against the line and, as the branch served no transportation

i

199 I# C. 0, 145.

*

For a complete history of this road sees

Reports 532*

40 Valuation

543 need, the Commission could see no reaeon for its continued existence. The St* Louis~San Francisco applied on November 2 2 i 1933,*** to abandon the Weir branch, about 2*7 miles, all in Crawford and Cherokee counties, Kansas*

The branch

w a s constructed in X878 to serve coal mines in the territory and w a s acquired by a constituent company of the Frisco in 1888*

It connected at both ends w i t h lines of the Frisco.

There were no intermediate stations, and the coal deposits were practically exhausted:

there were at the time no

mining operations and no traffic for the branch.

A s it

was deemed the branch was not performing a necessary tr&nsportation service, abandonment was permitted* Abandonment of a line f r o m milepost 24#00, approx­ imately 2 miles northwest of L e a venworth, in a general west­ erly direction to Hawthorn®, approximately 21*37 miles, all in Leavenworth and Atchison counties, Kansas, by the Atchi­ son, Topeka & Santa F© Railway Company was approved by the Interstate Commerce Commission under an application filed January 22, 1934*

2

The abandoned segment was completed

in 1687 by the L e a v e n w o r t h , Northern & Southern Hallway Company3 and was operated under the Santa Fe

lease b y predecessors

of

until February 15, 1899, when it was purchased

b y the latter*

The segment connected at its termini w i t h

other lines of the Santa F© and was closely paralleled b y | 2

3

212 I. 0. 0. 423. I b i d * , p. 779* fo r a complete history of this road sees

127

X* 0* 0* 408*

544 a line of the Missouri P a c i f i c ; at no point, in fact, were the lines separated by more t han $ miles* The region served b y the segment was rough and hilly, and cut b y small streams*

Agriculture, fruit grow­

ing and stock raising ar© the chief industries of the area, and none of it is more than fifteen miles from either Leavenworth or Atchison. In r eturn for the privilege of abandoning the segment, the Santa P© agreed to continue its existing rat© on grain and grain products, with transit privileges at Kansas City, Missouri, Leavenwox’bh and Atchison, Kansas, using the most convenient and economical route. The Atchison, Topeka & Santa F© Railway Company on September 20, 1934#

applied for permission to abandon a

branch line of railroad extending from Havana westerly to Oedarvale, Kansas, approximately 38*73 miles, all in M o n t ­ gomery and Chautauqua counties, Kansas* ©trusted during 1885-1887

p

The line was con-

by predecessor© of the applicant

and was acquired by the latter in 1901*

The area traversed

is hilly and rough, adapted principally to stock raising. Due to protests, the G o m i s s i o n granted a further test for a period of on© year from t o rch 24, 1936#

On

September 10, 1937, the railroad company asked that the requisite certificate for abandonment be issued#

hearing was held on January 14, 1938 .3 i ? 3

2121, C. G, 423. 1271. G. C. 216, 501, 507. 230I, 0, 0. 15.

A further

The territory was

545 well served by Improved highways*

The Post Office Depart­

ment, on J uly 1, 1938, discontinued the use of the branch for handling mall traffic, motor truck*

transferring all mail to a

The protestants insisted that abandonment

of the line would reduce their property values; would inconvenience shippers and receivers of freight, in part because the highways serving the area were not sufficient to handle the trucking operations; and would adversely affect schools because of the loss of taxes paid b y the branch.

The Gormission stated that under the law they

must base their findings upon "the present and future public convenience and necessity” and that It was clear that such matters as depreciation of property values, loss of taxes, and the effect of abandonment upon employment could not be controlling in oases of this character*

No Improve­

ment being noted after the trial period, the Commission approved abandonment of the road. The Atchison, Topeka & Santa F© Bailway Company on February 23# 1934,1 applied for, sion to abandon a line

and received,

of railroad extending

permis­

from Medicine

Lodge southerly to Gerlane, 7*59 miles, all in Barber county, Kansas*

The line was built along Medicine River

f r o m Kiowa to Belvidex-e,

2

a distance of approximately 50

miles, most of which was In Barber county.

Soon after the

line was completed b y The Denver, Kansas and Gulf Railroad

* 2

202 I. C. C, 508. 127 I. C. C. 589.

546 Company it was sold to the applicant. F r o m Medicine Lodge a line of the Santa Fe runs easterly 21 miles to Attica, a point on the main line between Kiowa and Wichita.

The line from Attica through

Medicine Lodge to Belvidere was known as the Attica branch# Another branch of the Santa Fe connected with the main line at Kulvarxe, 15 miles south of-Wichita:

it runs from

Eulvane westerly to Belvidere, continuing then to Engle­ wood, some 60 miles beyond# The line between Belvidere and Kiowa was subject to frequent floods and consequent damage#

In the summer of

1923 the I?-mile segment between Kiowa and Medicine Lodge was largely washed out:

train service between these points

was suspended on September 30 of that year and Gerlane, the only intermediate station, was without rail service. Citizens of Gerlan© petitioned the Public tftility Com­ mission of Kansas asking that the Santa Fe be required to repair and rebuild its line, and to restore service#

After

a hearing the Kansas Commission issued an order dated July 1, 1924, requiring the railway company to reconstruct Its tracks between K iowa and Gerlaae and to restore daily service between those points, but the Commission found that further evidence would be required to show the necessity of restoring the line north from Gerlane*

The Santa Fe

complied w i t h the order issued, and It appears that no further action was taken b y the State Commission:

the

547 oomunity was satisfied with the decision*

The Santa Fe

promised the people that the same freight rates would apply as though the entire line were in operation, and this

policy has been followed# It was estimated that It would have cost at least | 1 4 1 ,518 fee have rebuilt the Gerlsne-Belvlder© segment,

and an additional #16,19$ per year to provide triweekly train service.

The testimony was that it would not be

possible to extend the run from Kiowa and Gerlane to Medicine Lodge without exceeding the 16-hour limit, and

that to operate out of Medicine Lodge would require a special train and crew with payment for a 100-mil® run.

The only

substantial ground of objection offered to the proposed abandonment was that it would increase rates to Medicine Lodge and points in western Barber county* The Atchison, Topeka & Santa Fe Railway Company and the Chicago, Rock Island and Pacific Railway Company on February 31, 1934,

1 (s i c .) filed with the Interstate

Commerce Commission a joint application w h i c h was approved*

In accordance with this application, the Santa Fe was to, (1) abandon It© railroad extending westerly from Abilene, 9.77 miles, to a connection w i t h a line of the Rook Island approximately 2 miles west of Solomon,

(2) to abandon

operation under trackage rights over the railroad of the Rook Island extending w este r l y from said connection to S a l i m , 10.14 miles,

1

199 I. 0. C. 609.

(3) to operate under trackage rights

543 over the railroad of the Union Pacific Railroad Company between Abilene and S a l i n a , 19*61 miles, and (4) to con­ struct a connecting track at .Abilene, 0.17 miles long, to facilitate such operations* were to be modified thus:

Operations of the Hock Island it was

(1) to abandon its rail­

road between Galina and the connection given above, 10*14 miles;

(2) to abandon operation under trackage rights over

the rails of the Santa Fe between said connection and Abilene, 9.77 miles;

(3) to operate under trackage rights

over the Union Pacific between Abilene and oalina, 19.61 miles;

and (4) to construct a connecting track at or near

Galina, 0.18 mile long,

to facilitate such operation, all

in Dickinson a n d Saline

c o u n t i e s , Kansas.

Am noted previously, these three lines used almost adjoining rights-of-way from Abilene to Galina*

Por­

tions of the Santa Fe and Hock Island lines were abandoned in 1915*

There being no economic reason for the continuance

of the lines, the Union Pacific m i n t a i n i n g a main line w i t h ample facilities for carrying all the traffic of the branches in addition to its own, the segments of the Santa Fe and Rock Island above mentioned were abandoned*

An application, granted In part and denied in part, w a s filed by the Kansas southwestern Railway Company and th© Atchison, Topeka & Santa Fe Hallway Company, lessee, on March IS, 1935*^

1

212 I. C, 0. 119.

In this application the

Kansas

549 Southwestern sought to abandon a segment of its railroad extending In a general easterly direction from a point at or near South Haven to a connection with the St* Louis-San Francisco Railway at or near Arkansas City, approximately 21 miles, ©11 in Sumner and Cowley counties, Kansas; the Santa Fe, operating this mileage under lease, sought per­ mission to abandon operation of that part of the line* Except for directors * qualifying shares, the Santa Fe owns @11 th© capital stock of the Kansas southwestern*

1

The railroad of the Kansas Southwestern, con­

structed in !$S5~1$$6 by th© St* Louis, Kansas and South­ western,^ extends In a general easterly direction from a connection with the line of th© Santa [email protected] at Anthony, through Caldwell and South Haven, to a connection with the St* LouisSan Francisco Hallway at Arkansas City, approximately 60 miles*

Th© company proposed to abandon the eastern portion

of this railroad beyond South Haven, 21 miles# Th© segment traversed an agricultural district of southern Kansas about 40 miles south of Wichita#

Th©

towns on th© segment between its termini, from west to ©ast, ar© Portland, Ashton and Geuda Springs, having populations of 59, 102 and 340, respectively.

These towns ar© located

from 1*5 to 3*5 miles north of a hard-surfec© gravel high­ way extending from South Haven directly to Arkansas City*

\ 184 I. C, 0, 522. 2

116 I. C. C. 860.

550

Th© segment was laid with 52-pound rails, rails laid when th© line was originally constructed*

The records

indicated that th© portion of the segment requiring heaviest maintenance outlays was a section about 3*5 miles long In the Arkansas River b o t t o m between Gouda Springs and A r kan­ sas City:

here wash-out© were frequent* The Coimlssion could find little or no neces­

sity f o r the retention of the easterly portion of th© segment between Geuda Springs and Arkansas City* but they found that the line west of Geuda Spring© was in good condition, except for the rail* and that th© rail would last a© long on this segment as it would on the remainder of th© road, all rail being of th© same age and weight* The Commission permitted th© Kansas Southwestern Hallway to abandon that portion of its line of railroad extending easterly f r o m Geuda Spring© to Arkansas City, approximately 6*3 miles, but denied the petition to abandon that portion of th© segment extending easterly from South Haven to

Geuda springs# Frank 0# Bowden, James E. Gorman, and Joseph B# Fleming, as trustees in reorganization proceedings of th® Choctaw, Oklahoma and Gulf Railroad Company on Oct­ ober 1$, 1935,1 applied for permission to abandon a line of railroad extending northeasterly from a connection w ith the m ain line of the Chicago, Rock Island and Pacific

1

217 I* 0* 0* 290*

551 R a i lway Company, at or near Ingersoll, Oklahoma, to Anthony, Kansas, approximately 32.83 miles*

Of this line

approximately 18*14 miles was in Alfalfa county, Oklahoma, and 14*69 miles In H a r p er county, Kansas.

As trustees of

the Hook Island these same parties sought permission on behalf of the Rock Island to abandon operation over this line* Th e segment which the Commission permitted the Choctaw and Hook Island to abandon was constructed In 1901-1902*

It was the northerly portion of a

branch line extending f r o m Geary, on the Hock Island's east-and-west m a i n line, through 0*Keene and Ingersoll to Anthony, Kansas, w h e r e connections were made with the Atchison, Topeka & Santa Fe Railway and the Missouri Pacific Railway*

The total length of the branch was 124*3

miles« Th© entire mileage was laid with 65-pound rails that originally laid ©t time of construction*

The line

crossed th© Salt F ork River between Ingersoll and Drift­ wood and th© Medicine River between Driftwood and Amorita* In May, 1935, the bridges on the segment crossing those streams were severely damaged b y floods t

several panels of

the bridge over the Balt Fork Elver were entirely destroyed, while some of the bents of piling in th© bridge over th© Medicine River were destroyed, and several hundred feet of roadbed and embankment war© washed out at both ends

552 of th© bridge*

Th© bridge over the Salt Fork River was

afterward repaired to enable the Rock Island to resume service to Driftwood, but the bridge over the Medicine River was not restored* Aft e r the damage occurred, th© Rock Island rendered Irregular train service over that portion of th© line north of the bridge by use of a short ©ection of Santa F© trackage extending westerly from Caldwell to Anthony, moving then over th© segment to Amorita and return* Some service was rendered over the southerly portion of the segment, also* The Atchison, Topeka & Santa Fe Hallway Gamp©my was granted permission, under a petition filed with the Interstate Commerce Commission on -November 9, 1936,

1

to

abandon Its line of railroad extending west from a point near Mulvan© to V i o l © , approximately 21 m i l e ® , all in Sumner and Sedgwick counties, Kansas# The line, which was a portion of the appli c a n t fs Inglewood branch, w a s constructed in 1335-1$$7^ and was acquired by th© Santa Fe In 1901*

It crossed a main line

of the Rock Island at Reck and a line of the Missouri RaeIfle at Clearwater, but did not connect w i t h those carriers* At Viola connection was mad© with the Kansas City, Mexico & Orient Railway*

There were no other Intermediate stations*

i

221 I. 0. 0* 509*

^

For a complete history of this road see:

501-506*

127 I* 0* C.

553 Th© us© of th© Orient , control of which was granted to the Santa Fe in 1928, between Wichita and Viola b y trains once using the route via Mulvane and the

segment to Viola

saved about 16 miles* On t o y 17, 1937,

1

the tons as and Oklahoma Bail-

road Company applied for permission to abandon its entire lim© of railroad extending from state Lin© through Liberal to Woods, a distance of 19 miles, all in Seward and Stevens counties, Kansas*

Permission to abandon operation of the

line w a s granted by th© Commission on July 13, 1933*

2

Operation had b e e n discontinued on M a y ?, 1935 and was not later resumed although the applicant had intended Initially to resume operation of the line as soon as traffic war­ ranted# The road was constructed in 1922-1923 b y Th© Liberal Construction Company for the applicant*^

Taxes

were not paid on the line after 1933, &nd th® company had no m o n e y with w h i c h to pay them and could obtain th© neces­ sary funds only through salvage of th© road# was estimated at from $13,000 to #18,000*

Salvage value

Ho work had been

done on th© track sine© 1935, and b y 1937 the company estimated that 75% of th© road was covered with dirt and sand, in some places to depths of 2 and 3 feet*

i

221 I. C, 0, 513.

Z

20? X. 0* 0. 503# F o r a complete history of this road see • Reports 795*

^

43 Valuation

554 Th© Wichita Northwestern Railway Company was incorporated as th© A n t h o n y & Northern Railway Qompany,

December 12, 1912.

On November 1 0 , 1922, a receivership

was instituted which continued until November 2 9 , 1 940 : at that time permission was granted the reoeivers b y th© Interstate Commerce Commission to abandon th© entire line extending f r o m luka to Vaughn, Kansas,2 a distance of 100,0 m i l e s * 3

While the foregoing is not a complete listing of abandonment of branch and other railroad mileage in Kansas;

it is sufficiently inclusive to show little first-

line trackage has been withdrawn f rom use:

abandonments

have been restricted largely to parallel and branch lines, During th © decade f r o m 1885 to 1895 much parallel con­ struction took place;

this was illustrated b y the Santa

?©, Rock Island and Union Pacific tracks from Abilene to S a l i n e ; the Chicago, Kansas & Nebraska and the Wichita & Western lines f rom Pratt to the west line of Kiowa county; the Missouri Pacific and Santa Pe from Scott City to the west line of Wichita county; the Chicago, Kansas & Nebraska and th© Manhattan, Alma and Burlingame from Alma to W n hattan; Th© Chicago, Kansas & Nebraska and th© Junction City branch of th© Union Pacific from Springfield to Clyde;

1 2

97 I. 0. C, 524. , „

242 I. C, 0, 613-616. 97 X* 0* Q# 518,

F o r a oomplat© history of this road sees

518.

97 1. 0. C.

555 Th® Chicago, Kansas and Nebraska and the Santa Fe from Wellington to Caldwell; and m a n y others. The Interstate Commerce Commission says:

"The

circumstances that induced the promoters to construct a line, or th© motives that Influenced purchase of it, ar© not material after years have elapsed*

The use in the

nearer past and particularly the present use and the prospective use of the territory through which it operates, th© ©ffeot of operation on the people and on the general 1 transportation system are controlling circumstances *** Neither Is the fact "that a railroad has received municipal

aid controlling on its right to abandon*"

2

"The financial

status of the c a r r i e r ’s line is on© of the essential factors considered in authorising abandonment*"3

"If a

r a i l r o a d ’s facilities serve no useful purpose, and there is no transportation need to b ® met, smch facilities may b© withdrawn without serious injury or Inconvenience to the public*In

authorizing abandonment, the Commission con­

siders as essential factors "th© value and magnitude of th© ca r rier’s service, its financial status, the character and extent of the population and industries served,

and th©

probable effect on both th© general community and on the lessee system,"3 should the property be operated under lease.

556 Appe n d e d is a statement in tabular form of abandonments of railroad mileage in Kansas, records disclose such faction.

so far as the

There was, no doubt, rail­

road mileage constructed and abandoned in Kansas prior to the establishment of the Railroad Commission in 1683 of w h i c h o nly local records remain.

The Kansas Railroad Com­

missions war© not interested in reporting abandonments; consequently their notices of such are fragmentary*

A

complete record has b een available only since 1920 when the Interstate Commerce Commission was granted authority over construction and abandonment of railroad mileage. FROM TO

Atchison, Topeka & Santa F©

Colony Yates Center

24.74

11-1-33

-^uenemo Osage City

19*45

12-13-33

Leavenworth Hawthorn©

21,37

6 —8 —36

Abilene Solomon

10,0?

1-8-351

Solomon Saline

10*97

19153

Medicine

MILEAGE (KANSAS)

ABANDON­ MENT

CARRIER

7 *59

9-30-23 1

Lodge aerlane Havana Oedarval©

38,72

1934^

Mulvan© Viola

21# 00

8-15-371

Wellington Caldwell

19*76

12-3-185

557

CARRIES

Kansas South­ western

FBGM TO

MILEAGE (KARSA3)

ABANDON-

m m

H arper A nthony

7*79

19306

Cue da Springs Arkansas City

6*30

6-22-361

Ohlosgo, Burling­ Atchison ton & Quincy Rulo, Kebr,

27.57

10-31-331

Chicago, Kansas & Western

35.23

5-3-967

Ell inor Gladstone

3.23

Ho date given^

Hear Strong City

5*94

Ho date given'

Hear Holyrood

3.96

Mo date given?

llwood Hunt Spur

6*62

3-31-341

Chicago, Booh Island & Pac­ ific

Scott City Selkirk

Salina Solomon

10*03

1-8-35X

Solomon Abilene

10*33

1915®

Kismet Hayne

12*00

19399

I n g er s o l l , Oklahoma Anthony, Kan*

14*69

1 9 3 510

Colorado, K a n ­ sas and Okla­ homa

Soott City Winona

53.00

About 191711

Dodge City, Montezuma & Trinidad

Dodge City Montezuma

26,40

189312

Kansas City, Clinton & Springfield

Cedar 3ot* Olathe

11.49

189413

Choctaw, Oklahoma & Gulf

558 QABEI m

PBGM

$0 Kansas City, Lawrence &

MILEAGE (KANSAS)

Lawrence Carbon Hill

31*90

Kansas City* Monett & Southern

Hose Hill Kansas City, Kansas

7.11

Kansas City Northwe stern

Wyandotte Seneca

Wichita

U ? * 50

ABANDON-

m m 3-22*94

3-31-341

1917-191915

Axtell Nebr. state line

12.00

1917-191915

Manager Jot. South Leaven* worth

12,00

1917-191915

Kansas & O kla­ homa

State Line Woods

19.02

5-5-351

Kansas* South* ern & Gulf

Westmoreland Blaine

B.00

Leavenwoi'tii & fopelsa

Leavenworth Meridan Jet*

47*00

3-11-31^

Manhattan, Alma and Burlingame

Alma Manhattan

22.39

8-14-9816

Missouri Pacific

Eredania Eredonia Peru Jet.

39 * 31

1-1-341

fort Soott Lomax

90.95

5-15-34^

Blue Mound i LeRoy

34*24

5*"15**34^'

Blue Mound ] M o u n d City

12.50

3-15-361

Yates Center Can Yates

11*15*10^

5*69

3-1~34^

2.41

1933^

West Jet. North Eastern Oklahoma

5arena Carona ;est Mineral

559 CABBXEE

FROM TO

St* «Tosoph & G r a n d Island

St* Louis-San Francisco

St. Loula and Sa n Franciseo

St. Louis-*San Francisco

MILEAGE {KANSAS)

ABAIfDONKBHT

Troy Hunt Spur

6.43

2-15-341

Appleton Blair

6.43

2-15-341

Olathe Stanley

3.42

3-1-341

Empire Hero, Missouri

2.17

4-24-341

Baxter Springs Webb City, Mo*

2.17

4-24-34

Litchfield yet. Litchfield

3.00

187717

F r o m a point on Company line Hunnewell

2.00

1S9118

Weir City Weir let*

2.70

6-26-341

Weir let* Mackte

3.50

8-3-341

Stanley Clinton, Mo.

3.02

7-29-351

Topeka, Okmulgee and Gulf

16.00

5-20-96^

Topeka, western and Marysville

5.00

1892-1892

Onion Pacific

Knox Olay Center

143.53

1-8-351

Lawrenceburg Belleville

17.15

1-8-351

Clay Center Concordia

37.29

1-8-351

560 CARRIER Wichita and northwestern Wichita and Southwestern

Wichita & western

1 0

1 /

t ? ~

L o y .* w .

Xd

1-4 tf ** -

rr 49

MILEAGE

ABANDON­

(KANSAS)

MENT

luka Vaughn

100,00

11-29-4021

Wellington Connection with South era Kansas

2*62

12-15-9522

Sedgwick Halstead

S.89

12-15-9523

44.85

12-10-9524

Pratt West line of Kiowa coun­ ty

State Corporation C o m i s s i o n , Kansas, Thirteenth Biennial Be port . p* 23 (1934-1936)* 212 iT