Wikipedia:WikiProject Trains/ICC valuations/Rio Grande Junction Railway

[Interstate Commerce Commission, Valuation Reports, Volume 26]

The Rio Grande Junction Railway

Location and General Description of Property

The railroad of The Rio Grande Junction Railway Company, herein called the Rio Grande Junction Railway, is located within the State of Colorado and extends from Rifle to Grand Junction, a distance of 62.091 miles. This road forms a part of the carrier's [The Denver & Rio Grande Railroad] principal main line between Denver and Ogden.

Introductory

The Rio Grande Junction Railway is a corporation of the State of Colorado, having its principal office at Denver, Colo. It is controlled by the carrier through ownership of about 98 per cent of the outstanding capital stock. On the other hand, the Rio Grande Junction Railway does not control any common-carrier corporation.

Its property has been leased for operation since November, 1890, the date construction was completed, jointly to the carrier and The Colorado Midland Railroad Company, or these companies' respective predecessors, referred to hereinafter as the joint lessees, and was so operated to December 31, 1917. The property of the Rio Grande Junction Railway was taken over for operation by the United States Railroad Administration on January 1, 1918, as a part of the system of the carrier, and it is so operated on date of valuation. The Colorado Midland Railroad Company discontinued operation over this property on August 4, 1918, since which time the carrier has been sole lessee.

Corporate History

The Rio Grande Junction Railway was incorporated June 26, 1889, under the general laws of the State of Colorado, for the stated purpose of acquiring and operating a railroad to extend from Rifle Creek to Grand Junction, Colo. It perfected its organization July 1, 1889. In connection with the construction of this company's railroad, certain rights of way and franchises owned by The Roan Creek Toll Road Company and The Colorado Southwestern Railway Company were purchased under an agreement dated October 25, 1889. These two companies had been incorporated under the general laws of the State of Colorado on August 30, 1884, and August 24, 1888, respectively.

Development of Fixed Physical Property

The owned mileage of the Rio Grande Junction Railway was constructed for it by The Link Railway Construction Company under a construction contract dated October 26, 1889. The construction was begun about October, 1889, and was completed in November, 1890. The records examined do not indicate whether the Rio Grande Junction Railway and The Link Railway Construction Company were affiliated. Information regarding the financing of the construction is given in the chapter devoted to history of corporate financing. In connection with the construction of this mileage, certain rights of way and franchises of The Roan Creek Toll Road Company and The Colorado Southwestern Railway Company were purchased on October 25, 1889. Settlement for this purchased property was made by The Link Railway Construction Company.

Leased Railway Property

The Rio Grande Junction Railway's property was operated by the joint lessees, as hereinbefore explained, from the date of completion to December 31, 1917, under an agreement dated December 24, 1889. From January 1, 1918, to date of valuation the common-carrier property of the Rio Grande Junction Railway has been operated by the United States Railroad Administration as a part of the system of the carrier. Details with respect to the operation of this property are given in the chapter on leased railway property in the report on the carrier.

The carrier has been sole lessee since August 4, 1918, on which date The Colorado Midland Railway Company discontinued operations, including operations over the leased line.

Predecessor Companies

The Roan Creek Toll Road Company; The Colorado Southwestern Railway Company

No records of The Roan Creek Toll Road Company or The Colorado Southwestern Railway Company have been obtained, and no information can be given regarding their financial dealings or investments. It has not been ascertained whether or not these two companies were controlled by any individual, association, or corporation. There is no record that they controlled any other common-carrier corporation. The franchises and certain rights of way owned by these two companies were conveyed to the Rio Grande Junction Railway by an agreement dated October 25, 1889.