In the 1870's, Illinois had a law that a railroad in Illinois, owned by an
Illinois corporation could not be sold to a foreign or a non-Illinois
corporation. I'm sure many states had similar laws so many times railroads
would form a new company incorporated in that state to buy existing or
bankrupt railroads or even obtain a charter to build a railroad. I have
seen several charters where you had no idea who the railroad was, only to
see that it ultimately was swallowed up by a existing railroad after the
construction was completed. Another way around it was to lease trackage
rights and if the existing railroad went out of business, the foreign
railroad could buy the assets. I know the CB&Q and CM&StP did this many
times.
CB&Q did this for the line they built to the Black Hills. The original
charter from the Dakota Territory was issued to a railroad that was
incorporated in Nebraska, who's name escapes me, but I do remember that
Grand Island was part of the name.
Keith Nystedt
Home Lending Officer
LaSalle Bank Home Lending Center - -Westmont
(630) 241-6422 Direct
(630) 964-0309 Fax
keith.nystedt@abnamro.com
Ask about our Interest Only Mortgage!
"Douglas
Harding" To: <CBQ@yahoogroups.com>
<d.harding@mchsi cc:
.com> Subject: [CBQ] RE: Various Q
Questions...
Sent by:
CBQ@yahoogroups.
com
08/06/2005 09:58
AM
Please respond
to CBQ
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
Yahoo! Groups Links
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