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The Truman Area Community Network
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The Kansas City, Osceola and Southern Railway Company was incorporated April 22, 1891, under the laws of Missouri, for a period of 999 years. The general books of the company can not be located, and complete information concerning its affairs has not been obtained. It was organized by John I. Blair of Blairstown, N.J. During its entire existence it was controlled by Blair and the Blair estate.
On November 4, 1897, the company entered into an agreement with the St. Louis and San Francisco Railroad Company, which provided for an extension of its railroad from Osceola to a connection with the tracks of the St. Louis and San Francisco Railroad Company at Bolivar, and for lease of its property to the latter upon completion of such extension. This agreement also gave the latter an option ot p[urchase the franchises and property of the company at any time within five years fromthe date of the agreement. On March 19, 1900, the St. Louis and San Francisco Railroad Company served notice of its election to execute such option, and on June 1, 1900, the company conveyed its franchises and property to that company free from all claims and liabilities at that date. The consideration was $3,059,000 of the first-mortgage bonds of the St. Louis and San Francisco Railroad Company, subject to the expenditure by the company of $1,018,000 for reconstructing and equipping its property. The amount actually expended for such purposes was $856,857.94, the difference, $161,142.06, being paid to the St. Louis and San Francisco Railroad Company in cash.
On June 1, 1900, the date of the sale, the company owned about 147 miles of standard-gage, single-track railroad, located entirely in Missouri, extendinf from Kansas City to Bolivar.
Of the 147 miles of road owned by the Kansas City, Osceola and Southern Railway Company on date of demise, it has acquired about 106 miles from John I., Blair, who had purchased it at foreclosure sale from the Kansas City and Southern Railway Company. The remaining 41 miles of road was acquired by construction. Details with respect to the construction of the property are given in the chapter on development of fixed physical property of the Frisco.
Following from page 306, Development of Fixed Physical Property of the St. Louis and San Francisco Railroad:
Kansas City, Osceola and Southern Railway Company:
Osage River, near Osceola, to Osceola, Mo., in 1897 3
Osceola to Bolivar, Mo., 1898 38
____ 41
Kansas City and Southern Railway Company:
Osage River, near Osceola to East Lynn, Mo., 1885 54
East Lynn to Kansas City, Mo., 1889 52
____ 106
No details of the manner of financing the extension from the north bank of the Osage River to Osceola can be obtained. Construction of the line from Osceola to Bolivar was financed by Blair, who made a cash deposit of $600,000 with Blair and Company, bankers of New York, for that purpose. From that fund, the company expended $484,819.04 for construction of that extension, $7,783.24 for legal expenses in connection with lease contract, for repairs to roadway, and for salaries and expenses of the president of the road; $91,080.54 for repairs and improvements to the line from Kansas City to Osceola in order to put it in good physical condition, and $10,000 was deposited with the St. Louis and San francisco Railroad Company to cover cost of additional improvements made by it. The balance of the fund, $6,317.18 was returned to Blair.
The amount expended in reconstructing and equipping the line, $856,857.94, and the cash paid to the St. Louis and San Francisco Railroad Company, $161,142.06, was furnished by the Blair estate, which, as owner of all the company's securities, received $3,059,000 of the St. Louis and San Francisco first-mortgage bonds. The Blair estate also financed the settlement of all the current assets and liabilities of the company as of the date of sale. No further informationm regarding the financial transactions between the company and Blair and the Blair estate could be secured.
At the date of sale, all of the capital stock and funded debt of the Kansas City, Osceola and Southern Railway Company had had been issued, were outstanding, as follows:
Capital stock-----------------------------$2,000,000
Funded debt--------------------------------2,000,000
__________
Total-------------------------------------$4,000,000
Capital stock--A total of $3,300,000 in capital stock was authorized, of which $2,000,000 was issued to John I. Blair, as herinfore explained. At the date of sale, the entire issue was owned by the Blair estate, and was surrendered to the St. Louis and San Francisco Railroad Company for cancellation.
Funded debt:--The funded debt consisted of an issue of first-mortgage 4 per cent 50-year gold bonds, dated January 1, 1892, authorized and issued to John I. Blair in the amount of $2,000,000, as previously explained herin. At the dae of sale, these bonds were owned by the Blair estate and were surrendered to the St. Louis and San Francisco Railroad Company for cancellation.
As the general books are not obtainable, a statement of the results of the corporate operations of the property of the Kansas City, Osceola and Southern Railway Company can not be made. The property was operated by the company until August 31, 1898, but from September 1, 1898, until the date of sale, it was operated by the St. Louis and San Francisco Railway Company under lease.
Since the general books can not be located, the investment in road and equipment can not be state. For the line from Osage River to Osceola, about 3 miles, including bridge across the Osceola River, no accounting records of the outlays for its original construction have been found. For the line from Osceola to Bolivar, about 38 miles and for new equipment, the outlay for creating the property and acquiring the equipment is recorded at $671,935.41 in money.
The Kansas City and Southern Railway Company was incorporated June 10, 1880, under the laws of Missouri, for a period of 999 years. The general books of the company can not be located, and very little information concerning its affairs has been obtained. it was organized by Joseph E. Young of Chicago, Ill. and certain of his associates, in order to acquire the property of the Kansas City, Memphis and Mobile Railroad Company, which had been sold at public auction on April 11, 1877. By deeded date December 15, 1880, the company acquired such property, which consisted of some right of way and graded roadbed between Clinton, Mo., and Kansas City, Mo.
Between 1881 and 1884, some little construction work was performed, but in the last-named year, construction began in earnest, and in May, 1885, the company had completed a railroad from the north bank of the Osage River, opposite Osceola, Mo.,, to East Lynne, Mo., about 54 miles. About January 1, 1889, the line was completed from the last-named point to Kansas City, Mo., about 52 miles, making in all about 106 miles of standard-gage, single-track railroad, owned and operated by the company.
The company's authorized capital stock was $3,000,000, and it authorized an issue of $6,500,000 of first-mortgage bonds under a mortgage dated January 1, 1883. The exact amount of securities issued is not known, but on July 1, 1890, the company defaulted the payment of interest on its first-mortgage bonds then outstanding and in accordance with the terms of the mortgage, , the Farmers' Loan and Trust Company of New York,, trustee thereunder, sold the company's franchise and property at public auction on April 321, 1891, to John I. Blair, of Blairstown, N.J., for $250,000. Payment of the purchase price was made partly in cash and partly in defaulted bonds. On June 10, 1891, the Farmers' Loan and Trust Company executed a deed conveying the franchises and property to Blair. The latter organized the Kansas City, Osceola and Southern Railway Company, and conveyed the property to that company on June 16, 1891.
No further information covering the company or its property is obtainable.
The Kansas City, Memphis and Mobile Railroad Company was incorporated August 23, 1871, under the laws of Missouri for a period of 99 years. The general books of the company can not be located, and very little information concerning its affairs has been obtained. It was organized by various residents of Missouri, and its authorized capital stock was $7,000,000. Between 1871 and 1876 it acquired some rights of way and performed some grading between Clinton, Mo., and Kansas City, Mo., but no completed railroad was constructed.
On petition of certain creditors, in the United States District Court for the Western District of Missouri, the company was, on February 15, 1876, adjudged to be bankrupt, and on April 11, 1877, its franchises and property were sold at public auction to John D. Bancroft of Kansas City, Mo., for $15,025. The money with which to make the payment was furnished by 25 subscribers, for whom, Thomas K. Hanna, Benjamin McLean, and John D. Bancroft were elected trustees. On December 15, 1880, these trustees executed a deed conveying the franchises and property to the Kansas City and Southern Railway Company.
No further information concerning the company, or its property, can be secured.