The Erie and Pittsburgh is a corporation of the State of Pennsylvania, having its principal office at Erie, Pa. The report filed by the Erie and Pittsburgh with us for the year ending on date of valuation states that control of the company is not vested in any individual or corporation. The records do not indicate that it controls any carrier corporation.
Operation of the property of the Erie and Pittsburgh commenced in March 1860. For an indeterminate time it was operated jointly with the Buffalo & State Line Rail Road, and thereafter by the Erie and Pittsburgh's own management until February 28, 1870. From March 1, 1870, to March 31, 1871, it was operated by the Pennsylvania Railroad under a 999-year lease dated March 23, 1870. Since April 1, 1871, the property has been operated by the Pennsylvania Company by assignment of this lease.
The Erie and Pittsburgh was incorporated in Pennsylvania under provisions of a special act of April 1, 1858, subject to the provisions of the general law of February 19, 1849, regulating railroad companies, and acts supplementary thereto for the purpose of completing the road between Girard Junction and Jamestown, Pa., then being constructed by the Erie and North East Rail Road Company, it having been suggested that the act of April 22, 1856, was defective in authorizing the latter company to do this work under its own corporate name. The Erie and Pittsburgh was also authorized under the act of incorporation to extend the road within five years from Jamestown to New Castle, Pa., and from Girard Junction to Erie, Pa.
The following chart shows the names of the corporations comprised in the corporate history of the Erie and Pittsburgh, their respective dates of incorporation, and manner and date of succession.
|1||Erie and Pittsburgh Railroad Company.||Under special act of Pennsylvania, Apr. 1, 1858.|
|2||Erie Canal Company.|
|Under special act of Pennsylvania, Mar. 7, 1843.||Sold at sheriff's sale on Nov. 29, 1870, and at other times to W. L. Scott, trustee in interest of the Erie and Pittsburgh and the Pennsylvania Railroad. Franchise conveyed to 1 by deed of Mar. 22, 1871. Lands sold to various purchasers; certain lands conveyed to Pennsylvania Company.|
|3||Erie and North East Rail Road Company.||Under special act of Pennsylvania, Apr. 12, 1842.||Completed property consolidated with Buffalo & State Line Rail Road Company on June 30, 1867, to form The Buffalo and Erie Rail Road Company, now a part of the New York Central system. To complete remaining road 1 was organized, to whom the Erie and North East Rail Road Company turned over its property.|
|4||The Pittsburgh and Erie Railroad Company.||Under special act of Pennsylvania, Apr. 21, 1846.||Sold in part Aug. 18, 1857, to Meadville Rail Road Company, now a part of the Erie Railroad system. Remainder of uncompleted road sold at sheriff's sale to individuals, from whom it was afterwards purchased by 1.|
The railroad owned by the Erie and Pittsburgh on date of valuation was acquired in part by direct purchase and in part by construction, as follows:
|Acquired by direct purchase:|
|From Erie and North East Rail Road Company, constructed in part by that company and completed by the Erie and Pittsburgh during March, 1860, Girard Junction to Jamestown, Pa.||40|
|From individuals, constructed in part by The Pittsburgh and Erie Railroad Company and completed by the Erie and Pittsburgh in about 1864, Greenville to Shenango River, between Clarksville and Sharpsville, Pa.||9||49|
|Jamestown to New Castle, Pa., other than the 9 miles shown above, opened for operation Aug. 1, 1864||31|
|Dock Junction to Erie, Pa., opened for operation during 1865||3||34|
|Total recorded mileage owned on date of valuation||83|
Construction of the above 34 miles of road was in part by various contractors and in part by the company's own forces. The Erie and Pittsburgh has constructed approximately 24.84 miles of second main track, in Pennsylvania, as follows:
|New Castle to Harbor Bridge|
Wheatland to Sharon
|Harbor Bridge to Wheatland||1903||13.19|
|Dock Junction to Erie||1903||0.84|
|Sharon to Sharpsville||1905||1.94|
|Remainder of second track, Dock Junction to Erie||1907||0.50|
|Sharpsville to interlocking tower||1908||0.62|
The manner in which the Erie and Pittsburgh acquired certain of the property of the Erie Canal Company, most of which the latter disposed of, is set forth in the subsequent report on that company. [That report is reproduced at the foot of this page.]
The Erie and Pittsburgh had investments in other companies on date of valuation of a par value of $43,700 and a book value of $41,372.46. These investments are asd follows:
|Class||Par value||Book value|
|Capital stock, nonaffiliated carrier corporations:|
|Pennsylvania Railroad, common||30,700.00||33,901.38|
|Pittsburgh, Bessemer and Lake Erie Railroad Company, common||8,000.00||3,171.08|
|Bonds, nonaffiliated carrier corporations, Illinois Central Railroad Company collateral-trust 4 per cent gold bonds, due in 1953||5,000.00||4,300.00|
The entire common-carrier property of the Erie and Pittsburgh was leased to the Pennsylvania Railroad under a 999-year lease dated March 24, 1870, effective March 1, 1870. This lease was assigned to the Pennsylvania Company on April 1, 1871. Under the terms of the lease the Pennsylvania Company pays to the Erie and Pittsburgh an amount equal to 7 per cent per annum on the outstanding capital stock of the Erie and Pittsburgh, interest on the outstanding bonds, all taxes on the property and earnings, and $2,500 per annum for maintenance of investment organization. All expenses of maintenance and operation of the property are paid by the lessee. The Erie and Pittsburgh credited its income account with $418,694.24 as Income for the use of its property during the year ended on date of valuation.
Note 1: There seems to have been some confusion caused by this entry in the Corporate History. This canal does not appear to be the Erie Canal across New York State. There was no "Erie Canal Company" associated with that canal. It was built, maintained and operated by the State of New York under its own authority without need for a corporation. This was essentially the same arrangement under which Pennsylvania built the Main Line of Public Works.
As I understand the situation when the Commonwealth got out of the canal business, business interests in Erie, Pa., believing it vital to have canal connections to the Ohio River and Pittsburgh, formed a company to purchase and operate certain former state canals. That is the Erie Canal Company referred to in this report.
See also the Valuation Report for the Pennsylvania Company, which indicates the Pennsylvania Company obtained the canal properties. The Corporate History above indicates that the E & P obtained the franchises held by the Erie Canal Company. Back.
No accounting records of this company were obtainable. The information hereafter given is taken from the return of the Erie and Pittsburgh.
The company acquired by purchase from the State of Pennsylvania those parts of the old Pennsylvania canal constructed by the State, known as:
|Beaver Division Canal, from mouth of Beaver River, near New Brighton, to a point 6 miles north of New Castle||30.75|
|Erie Extension Canal, from a point 6 miles north of New Castle to Erie||105.50|
|French Creek Feeder, from the outlet of Conneaut Lake to the main canal, with a reservoir at Hartstown||27.00|
|Franklin Line, from main canal 7 miles below Meadville to Franklin on the Allegheny River||22.25|
|TOTAL (in Pennsylvania)||185.50|
Construction of the Beaver Division Canal was commenced in 1831 and completed by the State on May 28, 1844; the Erie Extension Canal was commenced in 1827, and completed in part by the State in 1844. The remaining portions of this section to Lake Erie were completed by the Erie Canal Company in 1845. These canals were operated by the Erie Canal Company until 1870, when the Erie and Pittsburgh acquired control. The Pennsylvania Railroad, lessee of the Erie and Pittsburgh, operated the canal for about one year without written agreement.
Capital stock of $64,000 par value and bonds of $835,758 par value appear to have been outstanding on November 29, 1870, the date of the sale of the property at sheriff's sale.
The State of Pennsylvania recorded expenditures on the aforementioned canals as follows:
|French Creek to Franklin||817,779|
|Original data source:||Valuation Reports Vol. 23 pp 516-517, 530, 628|
Interstate Commerce Commission
Although published in 1929, the report is "...as of date of valuation" which was 30 June, 1916