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MENOMINEE AND ST. PAUL RAILWAY COMPANY History taken from

I.C.C. VALUATION DOCKET No. 127
ANN ARBOR RAILROAD COMPANY AND MENOMINEE, ST. PAUL RA1LWAY COMPANY
Submitted November 3; 1922 - Decided July 5, 1924

Location and general description of property — The railroad of the Menominee is a single-track, standard-gauge connection between the car-ferry slip of the carrier at Menominee, Mich., and the track of Chicago and North Western Railway Company, hereinafter called the North Western.  The Menominee owns 0.646 of a mile of main track and 0.847 of a mile of sidings, a total of 1.493 miles of all tracks.  All of its property is used by the carrier under a arrangement not reduced to writing.  The actual operation is conducted by the North Western, as agent for the carrier, under an agreement dated September 28, 1909.

Joinly used property – The Menominee has no jointly owned and used property.

Traffic connections -— The railroad of the Menominee connects with the line of the North Western at Menominee and by means of the car ferry with the line of the carrier.

Physical condition affecting construction — Construction was entirely within the urban Limits of Menominee, Mich.

Economic conditions relating to traffic —This road is a connecting link, with no territory of its own.  Its traffic is entirely dependent on the carrier and the agreement with the North Western.

Corporate history — The Menominee was incorporated on June 14, 1899, under the general laws of the State of Michigan, for the purpose of constructing a standard-gauge railroad extending from Menominee, Mich., to the Wisconsin State line, approximately 10 miles.  It was organized in the interest of the carrier to provide access, in connection with car ferries, to the then undeveloped territory to the northwest of Menominee, Mich. The North Western arrived at an understanding with the carrier whereby the latter was assured a maximum tonnage for its car ferries at Menominee and the line as originally proposed was not constructed.  Construction of the tracks and facilities at Menominee was completed in 1900.

History of corporate financing, capital stock, and long-term debt — Capital stock of the par value of $50,000 was issued to the carrier, in liquidation of advances for construction and operation.  No other securities have been issued.

Gross and net earnings of the carrier.—There are no accounting records of the Menominco in existence.

General balance sheet — There being no accounting records of the Menornuxee, no general balanco sheet has been cast.  The only apparent liability consists of the capital stock issue of $50,000 and the only apparent asset consists of road investment as indicated by advance account of the carrier amounting to $22,006.45.

Investment in road and equipment — The Menominee’s line was constructed by the carrier and the expenditures wore carried by it in an advance account.  This account, which does not disclose the cost of construction, also contains items which are without doubt operating expenses and certain credits for switching performed.  The net balance in this account, $22,060.45, is carried in the accounts of the carrier as its investment in the Menominee’s capital stock.  The Menominee owns no equipment.

Oriqinal cost to date — The original cost to date of the property of the Menominee can not be ascertained, for the reason that the records are not obtainable.

Cost of reproduction new and cost of reproduction less depreciation — The cost of reproduction new and cost of reproduction less depreciation of all common-carrier property, other than land, wholly owned by the Menominee, and used by the carrier are $69,241 and $43,795, respectively.

Cost of lands, rights of way, and terminals at the time of their dedication to public use, and present value of same — The Menominee owns 4.75 acres of lands devoted to common-carrier purposes.  The Menominee claims the original cost of these lands to have been $10,000, which amount is supported by substantial deed considerations only.  The present value of those lands is found to be $5,338.96.

Property held for purposes other than those of common carrier — The Menominee owns no property held for purposes other than those of a common carrier.

Aids, gifts, grants of rights of way, and donations - No record was found of any aids or donations having been granted to or received by the Menominee.  Returns submitted by it show that it obtained 3.17 acres of lands owned and devoted to carrier purposes through deeds reciting nominal consideration only.  These lands through deeds are considered as aids.  Their present value is found to be $3,802.96, which amount is included in the preceding summary of present value of lands owned.  The value of these lands at the time acquired could not be ascertained.

Materials and supplies.—The Menominec owns no materials or supplies.

Final value — After careful consideration of all the facts submitted in this proceeding, including appreciation, depreciation, going-concern value, and all other matters which appear to have a bearing upon the value reported, the value for rate-making purposes of the property of the Menominee owned but not used devoted by the Carrier to common-carrier purposes is found to be $50,000.

No working capital, including materials and supplies, is found to be owned -and used by the Menominee.

Henry F. Burger 1/7/2007