Imágenes de páginas
PDF
EPUB

The Waldens Ridge Railroad Company, first-extension mortgage 5 per cent bonds issued, par value__

The Tennessee Valley Railroad Company, recorded money outlay....

Construction and additions and betterments:

Road and equipment—

Recorded money outlay....
Long-term notes, par value............

Other items:

Discount suffered on securities issued____

First-extension mort

gage, 5 per cent bonds $36, 300. 00 Equipment and improve

ment 5 per cent mort

$500, 000. 00

82, 154. 86

$3, 359, 750. 10

13, 500. 00

3, 373, 250. 10

411, 300. 00

[blocks in formation]

The outlay made by the company for construction and additions and betterments, as shown in the foregoing tabulation, amounting to $3,373,250.10, covers expenditures from July 1, 1886, date of incorporation to June 30, 1889, for additions and betterments and for the construction of 14.90 miles of road placed in operation June 30, 1888. The outlay made for construction and additions and betterments from July 1, 1889, to June 30, 1894, can not be ascertained, on account of missing records.

In addition to the road and equipment acquired by purchase as shown in the foregoing tabulation the company acquired by purchase the property, rights, and franchises of six other companies; namely, the Tennessee and Ohio Railroad Company; The Brierfield, Blocton and Birmingham Railway Company; The Knoxville and Augusta Railroad Company; the Cincinnati, Selma and Mobile Railway Company; the Rome and Decatur Railroad Company; and the Johnson City and Carolina Railway Company. The actual considerations involved in the acquisition of these properties can not be ascertained on account of missing records. The considerations, as stated in the deeds conveying the property to the East Tennessee, Virginia and Georgia Railway Company, are shown below. Tennessee and Ohio Railroad Company:

$320,000 in first-extension 5 per cent mortgage bonds of the East Tennessee, Virginia and Georgia Railway Company.

Brierfield, Blocton and Birmingham Railway Company:

Money advanced for construction, amount not stated.

Knoxville and Augusta Railroad Company:

$320,000 in first-extension 5 per cent mortgage bonds of the East Tennessee, Virginia and Georgia Railway Company.

Cincinnati, Selma and Mobile Railway Company:

$90,000 and retirement of $1,500,000 par value of Cincinnati, Selma and Mobile Railway Company first-mortgage bonds.

Rome and Decatur Railroad Company:

$832,000 in cash.

Johnson City and Carolina Railway Company:

$320,000 in general-mortgage bonds of the East Tennessee, Virginia and Georgia Railway Company.

INVESTMENT IN OTHER COMPANIES

The annual report rendered by the East Tennessee, Virginia and Georgia Railway Company to the commission for the year ended June 30, 1894, reports investments in other companies on hand as of that date, aggregating $11,741,274.05, consisting of the following:

[blocks in formation]

The considerations recorded as passed in acquisition of the above are summarized below.

Cash...

$641, 192. 08

Securities and other liabilities issued and assumed incident to

3, 428, 275. 00

7, 671, 806. 97

acquiring the property and assets of the East Tennessee, Virginia and Georgia Railroad Company.. Indeterminable account of missing records..

Total_____

11, 741, 274. 05

In addition to the above, the East Tennessee, Virginia and Georgia Railway Company acquired during the period July 1, 1886, to June 30, 1889, investments in other companies at a recorded book value of $247,000, all of which had been disposed of, at June 30, 1894.

The more important investments of the East Tennessee, Virginia and Georgia Railway Company in other companies, by virtue of which it exercised control, are narrated upon as follows:

Memphis and Charleston Railroad Company.-The East Tennessee, Virginia and Georgia Railway Company acquired $2,656,525 par value of capital stock of the above-named company as part of the assets of the East Tennessee, Virginia

and Georgia Railroad Company which it recorded at a book value of $2,656,525. It subsequently acquired additional capital stock having a par value of $117,500, which was recorded at a book value of $76,515.38. The East Tennessee, Virginia and Georgia Railway Company made advances to the above-named company aggregating $139,564.50, all of which were unpaid at June 30, 1894.

Knoxville and Ohio Railroad Company.-On June 30, 1894, the East Tennessee, Virginia and Georgia Railway Company owned $767,000 par value of capital stock of the above-named company which was carried at a book value of $767,000. This stock was acquired by the East Tennessee, Virginia and Georgia Railway Company as part of the assets of the East Tennessee, Virginia and Georgia Railroad Company.

Alabama Great Southern Railway Company, Limited.-The East Tennessee, Virginia and Georgia Railway Company, during the year 1890, acquired a controlling interest in the above-named company, an English corporation, through the purchase of a majority of its outstanding capital stock. The class of stock, par value, and book value are shown below.

[blocks in formation]

The actual considerations given by the East Tennessee, Virginia and Georgia Railway Company in the acquirement of this stock can not be ascertained on account of missing records. In February, 1890, the East Tennessee, Virginia and Georgia Railway Company disposed of $6,000,000 par value of its Cincinnati extension-mortgage bonds, the proceeds of which, as stated in the minute books, were to be used in the acquirement of a controlling interest in the above-named company, and for the purchase of 5,001 shares of capital stock of the Cincinnati, New Orleans and Texas Pacific Railway Company.

The Alabama Great Southern Railway Company, Limited, controlled the Alabama Great Southern Railroad Company and controlled 10,000 shares of the Cincinnati, New Orleans and Texas Pacific Railway; thus through the acquirement of a controlling interest in the Alabama Great Southern Railway Company, Limited, and through the purchase of 5,001 shares of capital stock of the Cincinnati, New Orleans and Texas Pacific Railway Company, the East Tennessee, Virginia and Georgia Railway Company exercised control over the three companies, viz., the Alabama Great Southern Railway Company Limited, the Alabama Great Southern Railroad Company, and the Cincinnati, New Orleans and Texas Pacific Railway Company.

Louisville Southern Railroad Company.-Under the terms of a lease agreement dated June 27, 1890, and supplement dated May 28, 1891, the East Tennessee, Virginia and Georgia Railway Company received $3,500,000 par value of capital stock of the above-named company. The available records indicate that this stock was received by the East Tennessee, Virginia and Georgia Railway Company without cost as consideration for leasing the property of the Louisville Southern Railroad Company and the guarantee by the East Tennessee, Virginia and Georgia Railway Company of the payment of the principal and interest on $5,000,000 par value of its first-mortgage bonds. The East Tennessee, Virginia and Georgia Railway Company subsequently acquired additional stock having a par value of $5,000, thereby giving it control. Advances were made by the East Tennessee, Virginia and Georgia Railway Company aggregating $673,202.12, to the Louisville Southern Railroad Company, all of which were unpaid at June 30, 1894.

Mobile and Birmingham Railway Company.-By virtue of an agreement executed on March 15, 1887, the East Tennessee, Virginia and Georgia Railway Company guaranteed bonds of the above-named company and received as a consideration therefor $1,530,000 par value of common stock of the Mobile and Birmingham Railway Company. The East Tennessee, Virginia and Georgia Railway Company subsequently acquired additional stock of this company having a par value of $970,000. It also acquired $1,100,000 par value of its first-mortgage bonds in settlement of advances made, which were recorded at a book value of $861,092.08. Advances made by the East Tennessee, Virginia and Georgia Railway Company amounting to $50,640.39 were unpaid at June 30. 1894.

THE TENNESSEE VALLEY RAILROAD COMPANY-PREDECESSOR OF THE EAST TENNESSEE, VIRGINIA AND GEORGIA RAILWAY COMPANY

No accounting records of The Tennessee Valley Railroad Company were obtained. Therefore, no information can be given from its accounts regarding its financial dealings, corporate operations, or investments. On October 5, 1888, the date of demise, The Tennessee Valley Railroad Company owned and operated about 3.70 miles of single-track, main-line railroad, all in the State of Tennessee, extending from a connection with the New River branch of the Knoxville and Ohio Railroad to coal mines near Panola. This property was acquired through construction, completed in 1888.

JOHNSON CITY AND CAROLINA RAILWAY COMPANY-PREDECESSOR OF THE EAST TENNESSEE, Virginia and Georgia RailwAY COMPANY

No accounting records of the Johnson City and Carolina Railway Company were obtained. Therefore, no information can be given from its accounts regarding its financial dealings, corporate operations, or investments. On date of demise, January 21, 1891, the Johnson City and Carolina Railway Company owned no road mileage.

KNOXVILLE AND AUGUSTA RAILROAD COMPANY-PREDECESSOR OF EAST TENNESSEE, VIRGINIA AND GEORGIA RAILWAY COMPANY

No accounting records of the Knoxville and Augusta Railroad Company were obtained. Therefore, no information can be given from its accounts regarding its financial dealings, corporate operations, or investments. Early in 1881 the Richmond and West Point Terminal Railway and Warehouse Company acquired control of the Knoxville and Augusta Railroad Company and retained its interest until 1890, when the property was sold. On date of its demise, February 19, 1890, the Knoxville and Augusta Railroad Company owned and operated about 16 miles of single-track, main-line railroad, extending from Knoxville to Mary. ville, all in Tennessee. This road was acquired from the purchaser of the Knoxville and Charleston Railroad Company. The consideration named in the deed of the property to the Knoxville and Augusta Railroad Company is $100,000. KNOXVILLE AND CHARLESTON RAILROAD COMPANY-PREDECESSOR OF THE KNOXVILLE AND AUGUSTA RAILROAD COMPANY

No accounting records of the Knoxville and Charleston Railroad Company were obtained. Therefore, no information can be given from its accounts regarding its financial dealings, corporate operations, or investments. Certain information stated hereinafter was obtained from returns made by the Southern and other sources.

On date of its demise the Knoxville and Charleston Railroad Company owned and operated about 16 miles of single-track, main-line railroad, extending from Knoxville to Maryville, Tenn. This road was acquired by construction, completed during 1867.

On January 20, 1871, the State of Tennessee filed a bill to foreclose the State lien for $816,500 due from the Knoxville and Charleston Railroad Company. On April 2, 1873, the company was sold to the State of Tennessee, and from that date until June 1, 1874, the State operated the property.

On June 1, 1874, the State of Tennessee leased the property to Allen Hay, and others for two years, and on April 10, 1875, sold the property to Thomas O'Connor and others and decree confirming the sale was issued December 14, 1875. The purchasers incorporated November 14, 1878, under the name of Knoxville and Augusta Railroad Company and subsequently conveyed title to the property to that company.

CINCINNATI, SELMA & MOBILE RAILWAY COMPANY-PREDECESSOR OF THE EAST TENNESSEE, VIRGINIA AND GEORGIA RAILWAY Company, FormERLY NAMED SELMA AND GREENSBORO RAILROAD COMPANY

INTRODUCTORY

Because of the fragmentary and incomplete accounting records of the Cincinnati, Selma & Mobile Railway Company, complete information can not be stated from the accounts in connection with its finances, investments, operations, or original cost. The historical data given below was obtained from returns made by the Southern and other sources:

The Cincinnati, Selma & Mobile Railway Company owned and operated on the date of demise, April 29, 1890, about 53 miles of single-track, standard-gauge railroad, extending from a connection with the East Tennessee, Virginia and Georgia Railway at Marion Junction, Ala., to a connection with the Alabama Great Southern Railroad at Akron, Ala. It also had trackage rights over the East Tennessee, Virginia and Georgia Railway from Marion Junction to Selma, Ala., about 14 miles.

DEVELOPMENT OF FIXED PHYSICAL PROPERTY

Of the 53 miles owned, 43 miles, extending from Marion Junction to Sawyersville, Ala., was acquired by purchase after foreclosure from The Selma, Marion and Memphis Railroad Company, and 10 miles, extending from Sawyersville to a connection with the Alabama Great Southern Railroad at Akron, Ala., was acquired by construction. Details with respect to the construction of this property are given in the chapter on development of fixed physical property in the report on the Southern. In addition to the mileage constructed as stated, a line was constructed by the Cincinnati, Selma & Mobile Railway Company south from Marion Junction to a connection with the New Orleans and Selma Railroad at Elizabeth Junction, Ala., but this line was abandoned in 1886.

HISTORY OF CORPORATE FINANCING

The records of the Cincinnati, Selma & Mobile Railway Company record that it issued capital stock and funded debt obligations aggregating $3,000,000, of which $2,832,000 were outstanding on the date of demise, as follows:

Capital stock___

Mortgage bonds...

$1,500, 000
1, 332, 000

The authorized capital stock of the company was $1,500,000 par value, divided into shares of $100 par value each, and classed as common stock, all of which

« AnteriorContinuar »