Wikipedia:WikiProject Trains/ICC valuations/Lansing Manufacturers Railroad

Interstate Commerce Commission, Valuation Reports, Volume 28

Lansing Manufacturers Railroad

Location and General Description of Property

The railroad of the Lansing Manufacturers Railroad is a single-track, standard-gage, steam-operated, belt line, partly circumscribing the city of Lansing, Mich. The company owns 5.221 miles of main track line and 2.697 miles of yard tracks and sidings. Its road thus embraces 7.918 miles of all tracks owned, all of which is used jointly, under lease, by The Michigan Central Railroad Company and The New York Central Railroad Company.

Introductory

The Lansing Manufacturers Railroad is a corporation of the State of Michigan, having its principal office at Detroit, Mich. The accounting records of the Lansing Manufacturers Railroad were destroyed by fire in 1915 and none has been subsequently maintained. Therefore, no information can be given from its accounts regarding its financial dealings, corporate operations, or investments. However, certain data indicated below were obtained from its minute book, agreements on file, annual reports to this commission, and from the records of The Michigan Central Railroad Company. The records reviewed do not indicate that the Lansing Manufacturers Railroad is controlled by any individual or corporation, nor, on the other hand, that it controls any common-carrier corporation.

The property of the Lansing Manufacturers Railroad has been operated under leases by The Michigan Central Railroad Company and The Lake Shore and Michigan Southern Railway Company and its successor, The New York Central Railroad Company, from the date it was put in operation to December 31, 1917. On January 1, 1918, the property was taken over for operation by the United States Railroad Administration as a part of the operating systems of The Michigan Central Railroad Company and The New York Central Railroad Company, and it is so operated on date of valuation.

Corporate History

The Lansing Manufacturers Railroad was incorporated August 30, 1904, under the general laws of the State of Michigan, for the purpose of constructing, operating, and maintaining a railroad to connect railroads already constructed in the city of Lansing and to furnish facilities to serve industries located within the county of Ingham, all in the State of Michigan.

Development of Fixed Physical Property

The owned mileage of the Lansing Manufacturers Railroad, 5.221 miles, was all acquired by construction during 1904 and 1905. The construction work was performed principally by Tench & Company, contractors, as indicated in the minute book.

Leased Railway Property

The property of the Lansing Manufacturers Railroad was solely operated under leases by The Michigan Central Railroad Company and The Lake Shore and Michigan Southern Railway Company and its successor, The New York Central Railroad Company, from the date it was placed in operation to December 31, 1917. From January 1, 1918, to date of valuation the property has been operated by the United States Railroad Administration as a part of the operating systems of The Michigan Central Railroad Company and The New York Central Railroad Company.

The entire property of the Lansing Manufacturers Railroad was leased to The Michigan Central Railroad Company and The Lake Shore and Michigan Southern Railway Company for sole operation under agreement dated May 29, 1905, amended May 29, 1911, for a term of 25 years from July 1, 1905, at a stipulated rental of $7,550 per annum, plus taxes, assessments, and maintenance. Under agreement of December 29, 1905, between The Michigan Central Railroad Company and The Lake Shore and Michigan Southern Railway Company, the former company maintained and operated the property and each company paid 50 per cent of the rental and expenses.

The Lansing Manufacturers Railroad reported to this commission for the year ended December 31, 1917, rental accrued during that year of $7,550 as income from lease of road, of which amount $3,775 was charged to The Michigan Central Railroad Company and $3,775 to The New York Central Railroad Company, successor of The Lake Shore and Michigan Southern Railway Company.

It was agreed and arranged between The Michigan Central Railroad Company and The New York Central Railroad Company that, effective January 1, 1918, subject to termination at the end of any calendar year by either company upon written notice given to the other before the first day of December of such year, the net earnings or deficit of the Lansing Manufacturers Railroad shall be divided between the two companies mentioned in the proportion that the number of cars handled for each company bears to the total number of cars handled for both companies.