The railroad of Wilkes-Barre Connecting Railroad Company, hereinafter called the Wilkes-Barre Connecting, is a double-track standard-gauge steam railroad, operated for freight service only, located in the northeastern part of Pennsylvania. The carrier owns 4.187 miles of double-track road in two parts and has trackage rights over 2.454 miles of road, making a continuous line from Buttonwood to Hudson, Pa., a distance of 6.641 miles. The carrier's line thus provides a direct connection between the tracks of the Pennsylvania Railroad Comany and the Northern Coal and Iron Company. The latter is entirely controlled by the carrier. The owned mileage of the Wilkes-Barre Connecting consists of 4.187 miles of first track, 4.187 miles of second main track, and 0.149 mile of yard and side tracks, making a total of 8.523 miles of all tracks owned.
The Wilkes-Barre Connecting was incorporated under the general laws of Pennsylvania and by letters patent of the Governor of Pennsylvania dated November 18, 1912. Its organization was perfected on December 3, 1912. It has been maintained and operated since completion for the joint benefit of the Pennsylvania Railroad Company and the carrier. Operations are conducted by the Pennsylvania Railroad Company, and the carrier as agents without benefit or loss to the Wilkes-Barre Connecting, as fully explained ... under the caption Leased Railway Property.
Construction was begun in 1913. Trackage rights were obtained over a portion of the railroad of the Northern Coal and Iron Company between Buttonwood and the Plymouth branch of the carrier, about 1.6 miles, and over a portion of the line of the Wilkes-Barre and Eastern Railroad Company from a point 0.75 mile west of Plains Station to a point 0.25 mile west of a bridge over the Susquehanna River, about 0.854 mile. The total of 2.454 miles of road thus obtained was rehabilitated and improved to meet the general plan of construction adopted by the Wilkes-Barre Connecting, which charged the recorded expenditures as improvements on leased railway property. The entire line of 6.641 miles was completed and placed in operation on March 29, 1915.
The balance sheet of the Wilkes-Barre Connecting at June 30, 1916, records investments in affiliated companies amounting to $131,384.92, which were found to cover cash advances to the Kingston Realty Company, a corporation controlled jointly by the carrier and the Pennsylvana Railroad Company through ownership of the entire capital stock outstanding.
On date of valuation, the Wilkes-Barre Connecting controlled through leases the following property of others:
The Wilkes-Barre Connecting acquired trackage rights over a portion of the Buttonwood branch of the Northern Coal and Iron Company, consisting of 1.6 miles of main track, together with 2.26 miles of yard tracks and sidings and 0.27 mile of spur track, from March 29, 1915, for the period of the corporate existance of the Wilkes-Barre Connecting, under an agreement dated December 29, 1914. By the terms of this agreement the Wilkes-Barre Connecting is required to pay 4.5 per cent per annum on a valuation of $520,770.20 for the railroad and facilities. The rent accrued payable for the year ended on date of valuation amounted to $29,488.58. Under the terms of this agreement the Wilkes-Barre Connecting is required to pay all taxes and assessments, insurance, and all operating and other expenses necessary for the upkeep of the railroad; also to provide for all addition-and-betterment work, which expenditures shall be repaid by the carrier in case the agreement is terminated. The leased property is maintained and operated by the carrier acting as agent for the Wilkes-Barre Connecting.
The Wilkes-Barre Connecting also acquired trackage rights over the tracks of the Wilkes-Barre and Eastern Railroad Company from a point about 0.75 mile west of Plains Station to a point about 0.25 mile west of the bridge over the Susquehanna River, being about 0.854 mile in length, for 99 years, with option to renew, under agreement dated December 30, 1913. The annual rental is stated to be 5 per cent per annum on the original cost of this section. The rent recorded as payable for the year ended on date of valuation was $9,650.61.
On date of valuation the companies mentioned below had rights to use all or portions of the property of the Wilkes-Barre Connecting:
The Pennsylvania Railroad Company and the carrier each have equal right to use the tracks and the other property owned or used by the Wilkes-Barre Connecting under the agreement dated December 29, 1914, which agreement provides for the construction, operation, and maintenance of the railroad of the Wilkes-Barre Connecting. Such property is to be maintained and operated by either the Pennsylvania Railroad Company or the carrier, as agent for the Wilkes-Barre Connecting. The rental payable in equal proportions by the Pennsylvania Railroad Company and the carrier for the trackage and other rights and privileges covers the interest upon any bonds and other outstanding obligations of the Wilkes-Barre Connecting, and any sums payable by the carrier as rental for trackage rights and any sums required to pay dividends, at the rate of 5 per cent per annum upon the outstanding capital stock of the Wilkes-Barre Connecting, less any sums receivable from others using any portion of the Wilkes-Barre Connecting's property. All expenses of maintenance and operation, less portions collected from others, are to be assumed by the Pennsylvania Railroad Company and the carrier in equal proportions. The joint-facility rent income recorded as receivable for the year ended on date of valuation, from the Pennsylvania Railroad Comapny, the carrier, and the Wilkes-Barre and Eastern Railroad, amounted to $39,139.19. This amount agrees with the rental recorded as payable to the Wilkes-Barre and Eastern Railroad and to the Northern Coal and Iron Company.
The Wilkes-Barre and Eastern Railroad participates with the Pennsylvania Railroad Company and the carrier in the use of the 2.41 miles of track between a point about 0.25 mile west of the upper bridge over the Schuylkill River  to a point of connection with the Plymouth branch of the carrier leased to the Wilkes-Barre Connecting. The rental payable by the Wilkes-Barre and Eastern Railroad is a wheelage proportion of rental it receives for the property it leases to the Wilkes-Barre Connecting. It also assumes a wheelage proportion of the maintenance and operating expenses connected with that particular property.
Note 1: I suspect the ICC confused two hard-to-spell Pennsylvania rivers and meant to write "Susquehanna" here. Back
|Original data source:||Decisions of the Interstate Commerce Commission Vol. 116 pp 819-820, 825, 828-829|
Interstate Commerce Commission
Although published in 1926, the report is "...as of date of valuation" which was 30 June, 1916