Western and Atlantic Railroad - Leasing

Leasing

Through 1870, it was called the State Road, and was operated directly by the state under a superintendent appointed by and reporting to the governor of Georgia. On December 27 of that year, operations were transferred to the Western & Atlantic Railroad Company, a group of 23 investors including Georgia's wartime governor Joseph E. Brown, who leased it (both tracks and rolling stock) from the state for $25,000 per month. This expired exactly 20 years later in 1890, when the Nashville, Chattanooga & St. Louis (NC&StL) leased it for 29 years. The railroad that was handed over to the NC&StL was in very poor condition. The locomotives that were transferred consisted only of those listed on the 1870 lease as property of the State. All of the new ten-wheel locomotives purchased by Gov. Brown's Western and Atlantic Railroad Company were sold to other railroads. While most of the passenger equipment was usable, almost all of the locomotives were condemnable and all of the freight cars were scrapped. The value of the locomotives was disputed for some twenty years. A major change in the new lease in 1890 stipulated that all improvements made to the road by the lessee would become property of the state at the termination of the lease. Included in the definition of improvements were modifications to the facilities, right of way and new equipment purchased for use over that line including but not limited to passenger cars, freight cars and locomotives. As it turned out, the NC&StL would continue to hold the lease to the Western and Atlantic Railroad of the State of Georgia until it was absorbed by its parent company, the Louisville and Nashville Railroad which was itself owned by the Atlantic Coast Line-one of the principal railroads in the Family Lines System and later CSX Transportation which continues to operate the line as the Western and Atlantic Subdivision. CSXT signed the current lease on the W&A from the State of Georgia in May 1986, set to expire on December 31, 2019.

After being captured by the Union in mid-1864 and until the end of the war in 1865, the line was briefly operated by the United States Military Railroad (USMRR).