History of The Michigan Central Railroad Company


History of The Michigan Central Railroad Company and its predecessors from the 1913 Annual Report of The New York Central Railroad System.


THE MICHIGAN CENTRAL RAILROAD COMPANY.

In 1836, the Detroit and St. Joseph Railroad Company, chartered June 29, 1832, began the construction of the road. Before the completion of any portion of the line, that Company sold its property and franchises to the State of Michigan, April 22, 1830, and the Central Railroad Company of Michigan was created. The road was completed by the State between Detroit and Kalamazoo, February 2, 1846. March 28, 1846, the State of Michigan passed an Act granting a special charter to The Michigan Central Railroad Company, and authorizing the sale of the Central Railroad to said Company for $2,000,000. The Michigan Central Railroad Company was organized, paid the consideration and took possession of the property under such, September 25,1846. The road was extended and operated to Niles and New Buffalo, and the further extension and change of line to Kensington, Illinois, was completed in May, 1852, and at the same time trains were run to Chicago, Illinois, over the tracks of the Illinois Central Railroad from Kensington. Under an agreement with the Illinois Central Railroad Company dated June 14, 1871, in lieu of all former agreements, The Michigan Central Railroad Company has perpetual running rights between Kensington and Chicago. The special charter was repealed by Act 2 of the Public Acts of Michigan, extra session 1900, and at a meeting of the stockholders, December 4, 1901, the Company, subject to the provisions of said Act, resolved to surrender its charter and to continue its incorporation under the general railroad law of Michigan. The certificate of such surrender and incorporation was filed in the office of the Secretary of State, December 30, 1901.

JOLIET AND NORTHERN INDIANA RAILROAD COMPANY

Incorporated January 9, 1854, under the laws of Indiana. Consolidated with the Oswego and Indiana Plank Road Company of Illinois July 1, 1854. Operated under perpetual agreement, dated September 7, 1851, by which, as amended The Michigan Central Railroad Company maintains the road and pays a rental of $15,000 per annum, being five per cent. on the capital stock of $300,000 and interest on funded debt and all taxes and expenses, and receives all revenues. Bonds of The Michigan Central Railroad Company issued for $1,500,000 secured by a mortgage on the property of the Joliet and Northern Indiana Railroad Company (under which mortgage the issue of bonds of The Michigan Central Railroad Company to an amount not exceeding $3,000,000 is authorized), have been substituted for such funded debt. The Michigan Central Railroad Company owns the entire capital stock.

MICHIGAN AIR LINE RAILROAD COMPANY

This Company is a consolidation of the Grand Trunk Railway Company of Michigan and the Grand Trunk Railway Company of Indiana, Articles of Consolidation being dated July 14, 1868, and filed August 27, 1868. There was a further consolidation with the St. Joseph Valley Railroad Company October 7, 1870. The road was complete in February, 1871. Operated under perpetual agreement, dated January 1, 1870, by which The Michigan Central Railroad Company maintains that portion of the original line west of Jackson, and pays interest on funded debt, and all taxes and expenses, and receives all revenues. Bonds of The Michigan Central Railroad Company issued for $2,600,090 secured by mortgage on the Michigan Air Line Railroad Company's property have been substituted for such funded debt. The Michigan Central Railroad Company owns a majority of the capital stock.

KALAMAZOO AND SOUTH HAVEN RAILROAD COMPANY

Incorporated April 15, 1869. The road was completed January 2, 1871. Operated under perpetual agreement, dated July 1, 1870, by which The Michigan Central Railroad Company maintains the road, pays interest on funded debt and all taxes and expenses, and receives all revenues. Bonds of The Michigan Central Railroad Company issued for $700,000 secured by mortgage on the property of the Kalamazoo and South Haven Railroad Company have been substituted for such funded debt. The Michigan Central Railroad Company owns a majority of the capital stock.

THE GRAND RIVER VALLEY RAILROAD COMPANY

Chartered May 4, 1846. Reorganized under General Laws of Michigan April 25, 1894. Road completed in spring of 1870. Operated under perpetual agreement dated August 15, 1870 by which The Michigan Central Railroad Company maintains the road and pays rental of $24,560 per annum, being five per cent. on the capital stock of $491,200 and $150 corporate expenses, and interest on funded debt, and all taxes and expenses, and receives all revenues. Bonds of The Michigan Central Railroad Company issued for $1,500.000 secured by a mortgage on the property of The Grand River Valley Railroad Company (under which mortgage the issue of Michigan Central bonds to an amount not exceeding $4,500,000 is authorized), have been substituted for such funded debt. The Michigan Central Railroad Company owns a minority of the capital stock.

JACKSON, LANSING AND SAGINAW RAILROAD COMPANY

The original company which built the first portion of this railroad was incorporated in 1857 under the name of the Amboy Lansing and Traverse Bay Railroad Company, commonly known as the Ramshorn Road. A considerable land grant was made to it. It began with the construction of the road north of Lansing and completed about twenty miles between Owosso and Lansing before 1861. February 23, 1864, the Lansing and Jackson Railroad Company, as purchaser of the property of the Lansing and Jackson Company, which had been organized to build a railroad between Lansing and Jackson , filed articles of association, and on February 23, 1865, filed amended articles changing the name to the Jackson Lansing and Saginaw Railroad Company. March 18, 1965, the State of Michigan authorized the latter Company to buy the railroad and property, including the land grant, of the Amboy Lansing and Traverse Bay Railroad Company, and on October 26, 1866, the contract of purchase was executed. The road was thereupon completed from Jackson to Lansing and from Owosso to Saginaw and Bay City, and in July, 1873, extended to Gaylord, and on December 31, 1881, all of the railroad from Jackson to Mackinaw City was completed. Operated under perpetual agreements dated August 31, 1871, September 1, 1876, and January 31, 1887 by which The Michigan Central Railroad Company maintains the road and pays rental of $70,750 per annum, being, 3 and one-half per cent on the capital stock of $2,000,000 and $750 for corporate expenses, interest on funded debt, and all taxes and expenses, and receives all revenues. Bonds of the Michigan Central Railroad Company, issued and now outstanding for $1,114,000 secured by mortgage on the property of the Jackson Lansing and Saginaw Railroad Company have been substituted for such funded debt. Such outstanding bonds are subject to reduction from time to time by purchase and retirement with funds arising from sales under the land grant. (See Trustees Report on another page). The Michigan Central Railroad Company owns one-third of the capital stock.

DETROIT AND BAY CITY RAILROAD COMPANY

The road was completed from Detroit to Bay City, Michigan, July 31, 1873, by the Detroit and Bay City Railway Company. The Detroit and Bay City Railroad Company was organized February 21, 1881, and acquired e the property of the Detroit and Bay City Railway Company. Operated in perpetuity under an agreement dated March l0,1881. The Michigan Central Railroad Company has issued its bonds for $4,000,000, secured by a mortgage on the property, and owns the entire capital stock.

BATTLE CREEK AND STURGIS RAILWAY COMPANY

Acquired that portion of a road which had been constructed between Battle Creek and Sturgis, Mich., in 1888 by the St. Louis Sturgis and Battle Creek Railroad Company. The road from Battle Creek to Findley Mich., is operated under an agreement dated February 1, 1890. The Michigan Central Railroad Company pays the interest on $421,000 issued December 1, 1889., at 3 percent, or $12,630, and owns 4,175 shares of the capital stock. The Lake Shore and Michigan Southern Railway Company operates road from Findley. Mich., to Sturgis ' Mich., under an agreement dated February 1, 1890, pays the interest on $79,000 bonds issued December 1, 1889, and owns 825 shares of the capital stock.

BAY CITY AND BATTLE CREEK RAILWAY COMPANY

Incorporated November 14, 1889, and acquired the road from West Bay City to Midland, Mich., constructed by the Battle Creek and Bay City Railroad Company; completed December 27, 1889. Operated under an agreement dated February 1, 1890 by The Michigan Central Railroad Company which pays interest on $250,000 bonds issued December 1, 1889, at three per cent, or $7,500. The Michigan Central Railroad Company owns all the capital stock.

THE DETROIT DELRAY AND DEARBORN RAILROAD COMPANY

Incorporated September 19, 1895, to build a connecting road near the southwesterly limits of Detroit, between the Toledo Canada Southern and Detroit tracks at Delray and the Michigan Central Railroad tracks at Dearborn. The road was completed October 5. 1896. The Michigan Central Railroad Company owns all the capital stock and operates the road.

DETROIT MANUFACTURERS' RAILROAD

Incorporated January 30 1902, and acquired the tracks and property of the Detroit Terminal Railway, (formerly Detroit Transit Railroad). Leased to The Michigan Central Railroad Company April 1, 1902, for a term of twenty-five years from January 1, 1903, at a rental of $12,000 per annum for five years from January 1, 1903, and $15,000 per year for twenty years thereafter; all taxes and assessments, and $150 per annum for organization expenses.

DETROIT TOLEDO AND MILWAUKEE RAILROAD COMPANY

Incorporated July 1 1897, taking over the Michigan Division of the Cincinnati Jackson and Mackinaw Railway. Allegan to Dundee, Mich., l33.14 miles. The Michigan Central Railroad Company owns 7,500 shares and The Lake Shore and Michigan Southern Railway Company 7,500 shares of the total 15,000 shares of capital stock outstanding. The road from Dundee to Homer, Mich., 66.58 miles, is operated by The Lake Shore and Michigan Southern Railway Company and from Homer to Allegan, Mich., 66.56 miles, by The Michigan Central Railroad Company under agreements entered into with The Detroit Toledo and Milwaukee Railroad Co. dated January 1, 1905. During the year 1913 the westerly 39.17 miles of this road, between Battle Creek and Allegan , was sold and possession thereof delivered to the Michigan and Chicago Railway Company, reducing the mileage operated by The Michigan Central railroad Company to that extent. New agreements for the operation of the remainder of the road by The Michigan Central Railroad Company and The Lake Shore and Michigan Southern Railway Company are under negotiation.

ST JOSEPH SOUTH BEND AND SOUTHERN RAILROAD COMPANY

Incorporated January 25, 1899. Acquired the property of the Indiana and Lake Michigan Railway Company; leased to the Indiana Illinois and Iowa Railroad Company February 23, 1900, at a rental of $20,000 per annum; lease transferred to The Michigan Central Railroad Company February 15, 1905. Lease expires February 23, 1950 and may be renewed for a term of fifty years upon notice one year before expiration. In connection with this property, the Indiana Illinois and Iowa Railroad Company constructed an extenuation from St. Joseph to Benton Harbor, Mich., 1.62 miles, and acquired dock property at St. Joseph, Mich. This line and property was leased to The Michigan Central Railroad Company under date of February 15, 1905, at a rental of $5,000 per annum. The lease remains in force so long as The Michigan Central Railroad Company shall remain in possession of the St. Joseph South Bend and Southern Railroad Company.

DETROIT RIVER TUNNEL COMPANY

A consolidation, August 15, 1905, of the Michigan and Canada Bridge and Tunnel Company and the Canada and Michigan Bridge and Tunnel Company , under the laws of the State of Michigan and the Dominion of Canada, organized for the purpose of constructing a tunnel under the Detroit River between Detroit, Mich., and Windsor Ont., and acquiring terminal facilities in connection therewith. The work was begun in October, 1906, and the tunnel completed in October, 1910. It was put into experimental use for through freight traffic October 9, 1910. The Chief Engineer of the Canadian Railway Commission inspected and approved the work, and the Commission issued its order authorizing the use of the tunnel, October 14, 1910. Regular freight and passenger service was inaugurated October 16, 1910. It is operated by The Michigan Central Railroad Company under lease of December 19, 1906, as amended by agreement dated May 10, 1911. The Terminal Station building at Detroit, in process of erection, is nearly completed and was put into actual use for trains and the offices largely occupied December 26, 1913. The Michigan Central Railroad Company owns all of the capital stock.

LANSING TRANSIT RAILWAY COMPANY

Incorporated August 31, 1886, for the purpose of constructing a spur track at Lansing, Mich.; leased February, 1888, for a term of ninety-nine years; The Michigan Central Railroad Company to maintain and operate. The Michigan Central Railroad Company and The Lake Shore and Michigan Southern Railway Company, are equal owners of the entire capital stock outstanding. Under an agreement dated July 31, 1888 between The Michigan Central Railroad Company and The Lake Shore and Michigan Southern Railway Company, the last named road has a fifty per cent interest in results from operation.

THE CANADA SOUTHERN RAILWAY COMPANY

Incorporated February 28, 1868. Absorbed the Erie and Niagara Railway Company July, 1893, and the Leamington and St. Clair Railway Company and the Sarnia Chatham and Erie Railway Company August, 1904. Leased with owned and leased lines January 1, 1904, to The Michigan Central Railroad Company for the term of nine hundred and ninety-nine years. Rental two and one-half per cent to January 1, 1910, and three per cent thereafter on $15,000,000 capital stock and interest on funded debt.

TOLEDO CANADA SOUTHERN AND DETROIT RAILWAY COMPANY

Consolidation, July 19, 1872, of the Detroit and State Line Railroad Company and the Junction Railway Company. Leased January 2, 1906, for the period of its corporate existence, The Michigan Central Railroad Company agreeing to pay the principal and interest on $4,500,000 four per cent first mortgage bonds as they may be issued in accordance with the terms of said lease. The date of maturity of these bonds is fifty years from January 1, 1906 and the amount now outstanding is $3,100,000. Of this amount $1,500,000 is held by The Canada Southern in accordance with the terms of an agreement dated January 2, 1906, between the Toledo Canada Southern and Detroit Railway Company, The Michigan Central Railroad Company and The Canada Southern Railway Company, and will not draw interest while in the possession of The Canada Southern Railway Company. The interest on the remaining $1,600,000 of bonds outstanding is paid by the lessee. Under the terms of the agreement above referred to, in consideration of the guarantee by The Michigan Central Railroad Company of both principal and interest of the $4,500,000 bond issue, The Canada Southern Railway Company is to deliver to The Michigan Central Railroad Company upon satisfaction of the Canada Southern second mortgage which matured March 1, 1913, the $1,500,000 bonds held by that company and the entire capital stock of the Toledo Canada Southern and Detroit Railway Company, which bonds and stock were subject to the lien of said second mortgage.

CANADA SOUTHERN BRIDGE COMPANY

Incorporated August 20, 1873. Line completed September, 1873. Leased to, and stock owned by The Canada Southern Railway Company.

ST CLAIR AND WESTERN RAILROAD COMPANY

Articles of association dated September 24, 1906; filed September 25, 1906; succeeding the Michigan Midland and Canada Railroad Company which was incorporated September l7, 1872, and road opened December 4, 1874. Controlled by The Canada Southern Railway Company through ownership of stock.

ST CHARLES AIR LINE

The agreements of The Michigan Central Railroad Company with respect to the St. Charles Air Line, a switching road in the city of Chicago, owned jointly by this company, the Chicago Burlington and Quincy Railroad Company, the Chicago and Northwestern Railway Company and the Illinois Central Railroad Company are contained in a book entitled, "History of the St. Charles Air Line Railroad in Chicago," compiled and published by the Illinois Central Railroad Company in April, 1902.

DETROIT TERMINAL RAILROAD COMPANY

Organized December 7, 1905 for the purpose of constructing a switching road from a point on the Detroit River east of to a point on the Detroit River west of Detroit. Articles filed December 8, 1905. During the year 1906 the greater portion of the construction work from a point on the Detroit River east of the city to the junction with the road of the Detroit and Bay City Railroad Company was completed, and in December, 1909, the road was extended to a connection with the Detroit Grand Haven and Milwaukee Railway and a short distance west thereof to Woodward Avenue and in 1910 was farther extended west of Woodward Avenue to the right of way of the Pere Marquette Railroad Company, a short distance south of Grand River Avenue, and was further extended in 1913 to a connection with the main line of The Michigan Central Railroad Company near the overhead bridge of the Pere Marquette Railroad a distance of 4.21 miles, making the total mileage completed to December 31, 1913, main line 17.48 miles. This railroad is owned one-fourth each by The Michigan Central Railroad Company, The Lake Shore and Michigan Southern Railway Company, the Grand Trunk Railway Company of Canada and the Detroit Grand Haven and Milwaukee Railway Company, and is operated under agreement made from time to time by the managing officers of said companies. .

CHICAGO KALAMAZOO AND SAGINAW RAILWAY COMPANY

Incorporated January 7, 1883; Articles amended December 10, 1887. Road completed from Kalamazoo to Woodbury September, 1889, and from Pavilion to Kalamazoo, December, 1901. The Michigan Central Railroad Company owns a majority of the capital stock.

DETROIT AND CHARLEVOIX RAILROAD COMPANY

Incorporated January 2, 1901. Road completed from Frederic to East Jordan, September, 1901. The entire capital stock is owned by The Michigan Central Railroad Company.

LANSING MANUFACTURERS RAILROAD

Incorporated January 25, 1904, for the purpose of building a belt line around the city of Lansing. Road leased to The Michigan Central Railroad Company and The Lake Shore and Michigan Southern Railway Company, July 1, 1905; at a rental of $7,500 per annum, and $50.00 for organization expenses, they to operate and maintain.

DETROIT BELT LINE RAILROAD

Organized May 18, 1909. Road located at Detroit, Mich., and is 4.39 miles in length, extending from a connection with the Detroit and Bay City Railroad, at Belt Line Junction (so called), near Chene Street, in the township of Hamtramck, Wayne County Mich., to a connection with the Detroit Manufacturers Railroad, at Wight Street, near the corner of Meldrum and Guoin Streets, in the city of Detroit, Mich. The entire capital stock is owned by The Michigan Central Railroad Company, and the road is operated by that company under agreement dated July 20, 1909.
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