Wikipedia:WikiProject Trains/ICC valuations/El Paso and Northeastern Railroad

Interstate Commerce Commission, Valuation Reports, Volume 45

The El Paso and Northeastern Railroad

Location and General Description of Property

The railroad of The El Paso and Northeastern Railroad Company, herein called the El Paso and Northeastern Railroad, is a single-track, standard-gage, steam railroad, located in western Texas. The main line extends northeasterly from El Paso to the Texas-New Mexico State line, a distance of 19.943 miles. The company also owns 15.423 miles of yard tracks and sidings. Its road thus embraces 35.366 miles of all tracks wholly owned and used. In addition, the El Paso and Northeastern Railroad jointly owns and uses with other carriers 1.996 undivided miles of main track and 3.779 undivided miles of yard tracks and sidings, totaling 5.775 undivided miles of all tracks. Its portion of this mileage, based on ownership, is 0.998 mile of main track and 1.890 miles of yard tracks and sidings, totaling 2.888 miles of all tracks. The El Paso and Northeastern Railroad forms a part of the El Paso and Southwestern system. Its line is an important link in a through route extending from Dawson, N. Mex., via El Paso, Tex., to Tucson, Ariz.

The El Paso and Northeastern Railroad has operated its property since January 1, 1899, the date it was placed in operation. In connection with the operations, it has been ascertained that the El Paso and Southwestern Company has acted as fiscal agent for the El Paso and Northeastern Railroad since April 1, 1908, making all collections and disbursements for, and periodically crediting or charging such items in an open account to, the El Paso and Northeastern Railroad.

Introductory

The El Paso and Northeastern Railway is a corporation of the State of New Mexico, having its principal office at Alamogordo, N. Mex. The El Paso and Northeastern Railway is controlled by the El Paso and Northeastern Company through ownership of its outstanding capital stock. The El Paso and Northeastern Company is solely controlled by the El Paso and Southwestern Company through stock ownership. On the other hand, the records reviewed do not indicate that this company controls any common-carrier corporation. The property of the El Paso and Northeastern Railway was operated by its own organization from January 1, 1899, the date of completion of its first section, to March 31, 1908, and since April 1, 1908, it has been operated under lease by the El Paso and Southwestern.

Corporate History

The El Paso and Northeastern Railroad was incorporated under the general laws of Texas, the articles of incorporation being filed with the secretary of state on June 5, 1896. The purpose of incorporation was to construct, own, and operate a railroad in El Paso County, Tex. The date of organization was December 1, 1897.

The same interests which incorporated the El Paso and Northeastern Railroad also caused the incorporation of four other railroad companies in the State of New Mexico. They also incorporated the El Paso and Northeastern Company, which acted as a construction company for the five railroad companies mentioned and holds control of all of them. Phelps, Dodge & Company (of New York) acquired control of the El Paso and Northeastern Company in 1904, and transferred the control to the El Paso and Southwestern Company in February 1907.

Development of Fixed Physical Property

The railroad owned by the El Paso and Northeastern Railroad was constructed by the El Paso and Northeastern Company, under contract, during the period October 1897 to December 1898. The line was opened for operation on January 1, 1899. A part of the right-of-way used by the contractor in the construction was acquired by purchase, and comprised a portion of the property formerly owned by the Kansas City, El Paso & Mexican Railway Company of Texas. The property of the latter company, consisting of about 10 miles of partly constructed road, had been sold in April 1892, and 8.19 miles of its right-of-way was acquired on November 16, 1897, by C. B. Eddy, acting for the El Paso and Northeastern Railroad and for the contractor. Eddy transferred his title to the El Paso and Northeastern Railroad on February 15, 1898. Of the property so acquired, 4.03 miles of right-of-way was abandoned and the available construction material thereon was used by the contractor on other portions of the line. The remainder of the property acquired, consisting of 4.16 miles of partly constructed roadbed, was reconstructed and completed by the contractor and forms a part of the El Paso and Northeastern Railroad's present owned mileage. In connection with this right-of-way, it subsequently developed that the Kansas City, El Paso & Mexican Railway Company of Texas had not secured a valid title to some of its land, and the El Paso and Northeastern Railroad expended $45,198.75 in perfecting the title.

The owned mileage, 150.826 miles, was all acquired by construction. Approximately 149.686 miles were constructed under contract by the El Paso and Northeastern Company and 1.140 miles by the El Paso and Southwestern. The years when the various portions of the line were constructed are as follows: Texas-New Mexico State line to Jarilla, N. Mex., 1897 to January 1, 1899, 106.660 miles; Jarilla to Capitan, N. Mex., July to September 1899, 41.750 miles; Capitan to North Capitan, N. Mex., June 1901, 1.120 miles; Jarilla to Zora, N. Mex., 1916, 1.140 miles; increase due to remeasurement, 1913, 0.130 mile; total recorded mileage, 150.800 miles. The difference between recorded mileage and mileage inventoried as of date of valuation is 0.026 mile.

Leased Railway Property

The entire property of the El Paso and Northeastern Railway was leased for sole operation to the El Paso and Southwestern under a lease agreement dated May 1, 1908, effective April 1, 1908, for an indefinite period, the annual rental being $189,000. The rental received for the year ended June 30, 1917, was $189,000.