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These were extreme examples, of course. Of the 36 tap lines in Arkansas only 16 finished fiscal 1911 on the profit side of the ledger, according to their financial reports in the authoritative Poor's Manual of Railroads. Eleven showed financial deficits in their operations, and nine submitted no financial reports to Poor's. Of these, ICC records show that three were making a profit, two operating at a loss, and four filed no reports to the ICC, despite the fact that such reports were required by law of all common carriers. It was generally understood that operating deficits incurred by tap lines were made good by the parent companies and written off as overhead expense (13).
The threat posed by the Commission's decision was obvious. Deprived of the hundreds of thousands of dollars per year in rate divisions, the tap lines would probably be doomed. Most were marginal operations at best, and if forced to function in a purely competitive environment their existence as more than industrial roads would be unjustifiable. The timber companies took immediate steps to counteract decision.
- Some companies like the Memphis, Dallas & Gulf, the largest tap
line in the state, and one of the most profitable, initiated legal action
to block the application of the ICC ruling. Lawyers for the MD&G, along
with attorneys for the Prescott & Northwestern and a group of Louisiana
tap lines, sought injunctions to force a delay in the enforcement of the
decision until redress could be had through the courts (14).
- __________________
- 13. Showing a profit were the Blytheville, Leachville & Arkansas Southern; Brookings & Peach Orchard;
- Central Ry. of Ark; Doniphan, Densett & Searcy; El Dorado & Wesson; Fordyce & Princeton; Fourche River Valley & Indian Terr.; Little Rock, Sheridan & Saline Valley; Malvern & Freeo Valley; Memphis, Dallas & Gulf; Mississippi, Arkansas & Western; Ouachita Valley; Thornton & Alexandria; Warren, Johnsville & Saline River; Warren & Ouachita Valley; and Wilmar & Saline Valley. Deficits were listed by Blytheville, Burdette & Miss. Valley; Crittenden; DeQueen & Eastern; Gould Southwestern; Griffin, Magnolia & Western; L'Anguille; Little Rock, Maumelle & Western; Louisiana & Pine Bluff; Prescott & Northwestern; Saline Bayou; and Saline River. No data was reported on Arkansas & Gulf; Arkansas Eastern; Bearden & Ouachita River; Beirne & Clear Lake; Caddo & Choctaw; Crossett; Homan & Southeastern; Manila & Southwestern; and Wilson Northern. The I. C. C. Statistics of Railways lists the Bearden & Ouachita R.; Crossett; and Manila & Southwestern as showing profits. The Wilson Northern & Beirne & Clear Lake are listed with deficits and no reports were submitted by the Arkansas & Gulf; Arkansas Eastern; Caddo & Choctaw; and Homan & Southwestern.
- 14. These legal efforts are hinted at in Clifton E. Hull, Shortline Railroads of Arkansas, (Norman,
- Okla., 1969), 295-296, 377.
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