Wikipedia:WikiProject Trains/ICC valuations/Flint River and Northeastern Railroad

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The railroad of The Flint River & Northeastern Railroad Company, hereinafter called the carrier, operates and claims to own a single-track standard-gauge steam railroad extending from Pelham, Ga., in a northeasterly direction to Ticknor, Ga., a distance of a little more than 23 miles. The title to substantially all of this property is now in litigation. The property consists of 23.236 miles of main line and 3.299 miles of yard tracks and sidings. Its road there[sic] embraces 26.535 miles of all tracks.

Corporate history.—The carrier was incorporated under the general laws of Georgia on June 26, 1903, for the purpose of operating a railroad from the east bank of the Flint River to Doerun, Ga. The principal office is at Moultrie, Ga. No individual stockholder holds stock enough to control the corporation. The principal stockholders of the carrier also own stock in The Georgia Northern Railway Company and in some cases officers hold office in both companies. But where officers of The Georgia Northern Railway Company act as officers of the carrier, both their salaries and office expenses are carried entirely by The Georgia [sic] Railway Company. On valuation date the ownership of some 22 miles of this road was in dispute. The annual reports of this commission indicate that during the year 1907, 1 mile of line between Wilma Junction and Pelham was built and put into operation, giving the carrier its own entrance into Pelham, which, apparently, before that had only been reached over the tracks of the Atlantic Coast Line Railroad Company. From the same source we learn that considerable improvements were made to the property during the years 1913 and 1914. In neither case are details shown beyond the classification of the expenditures by primary accounts. Further details in regard to the corporate history are to be found in Appendix 2.

APPENDIX 2

CORPORATE HISTORY

The original property was constructed for logging purposes, the Higgiston Lumber Company owning about one-half of it, from Pelham to Sale City, and the Mallete-Gray Lumber Company owning the remainder. On January 1, 1904, the carrier took a lease of the two sections for two years, with the privilege of renewal and the option of purchase. Subsequently the two owning companies transferred their interests to the Thomas N. Baker Lumber Company, which agreed, on May 11, 1906, to convey the entire line of railroad to certain individuals, including some now interested in the carrier and presumably acting for it, for the sum of $100,000. A controversy arose with reference to the conveyance of the property before the payment of the final installment of the agreed purchase price, and there has apparently been no formal transfer of the property, although the carrier has uniformly included it in its annual reports to the commission as owned, and has mortgaged it as security for an issue of bonds. Legal proceedings were instituted and are now pending with a view to the establishment of title to the property in the carrier.

CORPORATE FINANCING