Wikipedia:WikiProject Trains/ICC valuations/Missouri, Oklahoma and Gulf Railway

Interstate Commerce Commision, Valuation Reports, Volume 135

Missouri, Oklahoma and Gulf Railway

Location and General Description of Property

The railroad of the Missouri, Oklahoma and Gulf Railway Company, hereinafter called the Missouri, Oklahoma and Gulf Railway, is a single-track, standard-gauge, steam railroad. The owned mileage is located in Oklahoma and consists of a main line extending southerly from Wagoner to the Red River bridge at the Oklahoma-Texas State line, with branch lines from Dewar to Deep Fork, Bromide Junction to Bromide, and Muskogee Junction to Muskogee. The company also owns certain machines and machinery along the lines of its lessors, in Oklahoma and Kansas. The property used under lease is located in Oklahoma and Kansas, and consists of a line extending from Wagoner, Okla., to Baxter Springs, Kans., and a bridge over the Red River. It has trackage rights over lines of other carriers from Baxter Springs, Kans., to Joplin, Mo., about 15.44 miles, and thus maintains through service from Joplin, Mo., to the Oklahoma-Texas State line. An affiliated company, the Missouri, Oklahoma & Gulf Railway Company of Texas, which operates its own property, continues such service from the Oklahoma-Texas State line to Denison, Tex. The Missouri, Oklahoma and Gulf Railway wholly owns 216.046 miles of road, all of which it uses. It also wholly uses 98.324 miles of road, comprising the entire properties owned by two lessors, described in the following paragraphs.

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The Missouri, Oklahoma and Gulf Railway wholly owns and uses 265.456 miles of all tracks, and wholly uses but does not own 112.307 miles of all tracks. These tracks are classified in the trackage table in Appendix 1. The company also jointly owns and uses with another carrier 0.406 undivided mile of all tracks, also shown in Appendix 1.

Introductory

The Missouri, Oklahoma and Gulf Railway is a corporation of the State of Oklahoma having its principal office at Muskogee, Okla. It is controlled by William Kenefick, of Kansas City, Mo., and associates, through ownership of a majority of the outstanding capital stock. On the other hand, the records do not indicate that this company controls any common-carrier corporation. The property of the company was operated by its own organization from the date of acquirement thereof to December 11, 1913, and by receivers from December 12, 1913, to December 31, 1918. From January 1, 1919, to date of valuation it has been operated by the United States Railroad Administration.

Corporate History

The Missouri, Oklahoma and Gulf Railway was incorporated October 24, 1904, under the laws of the then Territory of Oklahoma, for the principal purpose of constructing and operating a railroad from a point on the Missouri-Oklahoma State line to a point on the Red River, Okla. It acquired at its organization the property, rights, and franchises of the Muskogee Union Railway. The details of corporate succession are given in the following table:

No.	Name	Incorporation	Succession
1.	Missouri, Oklahoma and Gulf Railway Company.	Under laws of the then Territory of Oklahoma, Oct. 24, 1904.
2.	Muskogee Union Railway.	Under laws of the then Territory of Oklahoma, May 26, 1903.	Sold to 1, Oct. 29, 1904.
3.	Muskogee Bridge Company.	Under laws of the then Territory of Oklahoma, June 16, 1903.	Sold to 2, July 20, 1904.

Development of Fixed Physical Property

The owned mileage of the Missouri, Oklahoma and Gulf Railway, 216.046 miles, was acquired partly by purchase and partly by construction, as detailed in the statement below.

		Mileage
Acquired by purchase:
From the Muskogee Union Railway, Oct. 29, 1904; constructed by the Muskogee Union Railway, Wagoner to Okay, Okla., 1904.		8.30
Acquired by construction:
Okay to Muskogee, Okla., 1903-1904.	8.30
Muskogee to Dustin, Okla., 1904-1905.	53.60
Dustin to Lamar, Okla., 1907-1908.	13.20
Lamar to Calvin, Okla., 1907-1909.	16.20
Calvin to Red River, Okla., 1908-1910.	102.20
Muskogee Junction to Muskogee, Okla., 1903-1904.	1.44
Bromide Junction to Bromide, Okla., 1911.	4.66
Dewar to Mile Post 4, Okla., 1905-1908.	4.00
Mile Post 4 to Deep Fork, Okla., 1911.	4.26
Arkansas Junction to Hyde Park, Okla., 1909.	2.00
	209.86
Less track abandoned and partly removed, Arkansas Junction to Hyde Park, Okla., 1915.	2.00
		207.86
Total recorded mileage.		216.16
Difference between total recorded mileage and mileage inventoried as of date of valuation.		0.114
Mileage inventoried as of date of valuation.		216.046

The road was constructed under contracts with the William Kenefick Company and the J. W. Hoffman Construction Company, which companies were controlled by William Kenefick, then president of the Missouri, Oklahoma and Gulf Railway.

Leased Railway Property

The Missouri, Oklahoma and Gulf Railway used on December 31, 1918, facilities owned by other companies, and other companies used facilities owned by the Missouri, Oklahoma and Gulf Railway to the extent indicated in the statement below. The description of the property, the period and terms of use, and the rentals accrued and charged or credited to income for the year ended December 31, 1918, are as follows:

	Rentals
Solely owned but jointly used, used with—
Okmulgee Northern Railway Company, branch line, 8.259 miles, from Dewar to Deep Fork, Okla., main line, 2.0 miles, from Dewar to Henryetta, Okla.; monthly rental, $450.	$5,400.00
Solely used but not owned, leased from—
Missouri, Oklahoma and Gulf Railroad, entire property, leased for 99 years from Sept. 21, 1912, under the lease Missouri, Oklahoma and Gulf Railway pays out of the gross revenue derived from the operation of the property, all operating expenses and renewals, all interest on funded debt outstanding except on bonds of the lessor company, held by the lessor company, all sums necessary for the acquisition of additional equipment, and the principal of such bonds of the lessor company which may become payable or which may be called for redemption during the term of the lease; provision made that out of any surplus remaining, the lessee may set aside a fund to be divided between the stockholders of the lessor and lessee on the basis of the capital stock of each outstanding; property has been operated as a part of the system of the Missouri, Oklahoma and Gulf Railway; no rental for this property recorded in the accounts as such; interest on funded debt of the lessor accrued in its own accounts and carried as unpaid on date of valuation.	No rental.
The Missouri, Oklahoma & Gulf Railroad, entire property, leased for 17 years from Feb. 1, 1913; annual rental equal to interest on funded debt and amount of taxes, assessments, and Government charges accruing; property operated as a part of the system of the Missouri, Oklahoma and Gulf Railway; no rental for this property recorded in the accounts as such; interest on funded debt of the lessor accrued in its own account and carried as unpaid on date of valuation.	No rental.
Jointly used but not owned, owned by—
The Kansas City, Fort Scott and Memphis Railway Company, leased line of the St. Louis-San Francisco Railway Company, main track, 7.28 miles, from Baxter Springs, Kans., to Galena, Kans., main line, 7.16 miles, from Galena, Kans., to Ruth, Mo.; annual rental for the 14.44 miles $600 per mile, one-half of insurance and taxes, and a share of cost of operation and maintenance based on car mileage.	24,217.37
Missouri Pacific Railroad Company, main track, 1.00 mile, from Ruth, to Joplin, Mo., and terminal facilities at and near Joplin, Mo., including yard tracks, roundhouses, and freight and passenger depots; annual rental $4,200 and an amount equal to 2 per cent per annum on all expenditures for additions and betterments, also a proportion of cost of operation based on ticket sales, tonnage, and car mileage, and one-half of all taxes assessed.	42,494.43

Lessor Companies

Predecessor Companies

Muskogee Union Railway

The Muskogee Union Railway was incorporated May 26, 1903, in the Territory of Oklahoma. Its accounting records were not obtained. Therefore, no information can be given from the accounts regarding its financial dealings, corporate operations, or investments. The information stated below was obtained from other sources.

The records reviewed do not indicate whether the company was controlled by any individual or corporation on October 29, 1904, the date of sale of its property, nor, on the other hand, whether it then controlled any common-carrier corporation. The railroad owned on date of sale consisted of 8.30 miles of single-track, standard-gauge steam railroad, extending from Wagoner to Okay, Okla., all of which was acquired by construction in 1904. Two bridges owned by the company were acquired by purchase of the property of the Muskogee Bridge Company.

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Muskogee Bridge Company

The Muskogee Bridge Company was incorporated June 16, 1903, in the Territory of Oklahoma. Its accounting records were not obtained; therefore, no information can be given from the accounts regarding its financial dealings, corporate operations, or investments. The records reviewed do not indicate whether the company was controlled by any individual or corporation on July 20, 1904, the date of sale of its property, nor, on the other hand, whether it then controlled any common-carrier corporation. The company owned on date of sale two railroad and highway bridges, one crossing the Verdigris River and the other the Arkansas River.

Oklahoma Union Railway, formerly named Missouri, Oklahoma & Gulf Railroad Company

The Oklahoma Union Railway was originally incorporated July 28, 1910, in the State of Oklahoma, as the Missouri, Oklahoma & Gulf Railroad Company. The name was changed to Oklahoma Union Railway, December 11, 1911. Its accounting records were not obtained; therefore, no information can be given from the accounts regarding its financial dealings, corporate operations, or investments. However, certain information stated below was obtained from other sources. The records reviewed do not indicate whether the Oklahoma Union Railway was controlled by any individual or corporation on February 15, 1912, the date of sale of its property, nor, on the other hand, whether it then controlled any common-carrier corporation. The property owned on the date of sale consisted of a bridge across the Red River at a point north of Denison, Tex., acquired by construction in 1910.