Jan, Rupert gave some reasons for various companies. Often the construction
company was a front, with intentions for turning over operations once
construction was completed. It also protected the parent company for
financial ruin or litigation if the line was not completed. Local
farmers/business people could not sue the Q for breach of contract when it
was the B&M, or whoever, building the line. Other reasons include state
regulations. If a RR's charter did not permit it to operate in a given
state, a new RR company was formed for the purpose of construction. Texas
was especially known for this, hence the creation of the Dallas & Forth
Worth. And let us not forget the many little local charters that were issued
and even sometimes built. Remember the Q consolidated a lot of these
operations into the Q proper in 1904 (I believe).
Douglas Harding
Iowa Central Railroad
http://d.harding.home.mchsi.com
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