The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1899-04-15
Rio Grande Western Attracts At
tention In the East.
PAYING BIG DIVIDENDS
PLEASANT VALLEY BRANCH TO
BE EXTENDED.
Stockholders Hold a Meeting and
Authorize New Consolidated
Four Per Cent Mortgage-Utah &
Pacific Will Soon Reach State Line
Southern Pacific Election.
lsnccial TO The Herald.D

New York. April IA large increase
IL earnings, the establishment of the )
per cent preferred stock dividend rate,
and an important new financial plan
have served to direct attention 10 the
progressiveness OF the Rio Grande
Western railroad. Though of small
mileage, the Rio Grande Western &C
cupies a secure position IN growing
community. Feeling quickly the eftects
OF the hard times of 1894 and 1882 II has
recovered its ground with no less rapid
ity. In physical condition, the line mas
no superior in the Rocky Mountain re-
giGn The directors, in their annual ana
Special reports, take the pubic 1ully
into their confidence and both bonds
and preferred stock have lately shown
decided advances. This is the natural
outcome of a good name, well deserved.
High-water mark in gross earnings
prior to 1898 was reached in 1892, Ut
s.. 643 925. From this level the total
dropped to S. 100000 in 1894. The next
three years showed no pronounced re-
covery, but in 1898 the gross receipts
rose to SO, So, 2SS. or u per cent more
than the year before. The gain IN net
earnings the same year was 5532 per
cent. Dividends on the preferred STOCK
We're suspended during the panic years,
or, rather, to a 8 per cent rate, with :
per cent adjustments, subsequently, at
che close of 1897.
The directors have now in the IL per
cent dividend declared for May l re-
turned formally to the regular per
cent annual rate, payable in UNIFORM
quarterly installmentS. The common
stock last September was given a dlVl-
dend of per cent on preferred stock,
in, vic pf q
business conditions is not unlikely TO
get another share Of the profits about
June So
Western Colorado and all of Utah are
developing rapidly, the reports of re-
cent gold and copper discoveries being
particularly gratifying to the RIO
Grande Western management. The
company reported for the fiscal year a
surplus of S220.000, after the payment OF
5 per cent on the preferred shares, This
amount was earned without question
No doubt can be thrown upon the integ-
Iity OF the net earnings. The eXpendi-
lures for the seven years, 1892 to 1898,
Inclusive, for maintenance of way.
averaged $671 per mile Of road.
EXTENSIONS ANNOUNCED.
The next step is to provide for growth
The passenger mileage last year in
creased SO per cent and the freight
mileage 20 per cent over 1897. The line
needs much additional equipment A
branch ten miles long mus be built at
once up the Provo River canyon, to-
ward Park City, in order to save the
charter, and a fifteen-mile extension OF
the Pleasant Valley branch has also
been determined on.
To provide for this work and to can
eel the existing equipment obligations.
as well as to insure funds for future de-
Velopments, the new fifty-year 4 per
cent gold loan has been revived. The
amount of the present issue is $1,000, 600.
Ultimately bonds of the new series VIII
replace the existing first mortgage and
thus become the first lien upon the en-
tire property. They viii be from the
start the first lien upon the recent and
the projected extensions as well Is
upon the equipment to be acquired. The
addition of $50, 900 to the annual charges
will impose no hardship bearing in
mind she particularly large amount of
the car mileage payments that the new
equipment will offset
The Rio Grande Westerns financing
since the conversion into a standard
guage line has been remarkably simple
and safe. The ton-mile rate on the RiC
Grande Western has shown usual
downward course by stages from Ill
cents in 1892 to 1.22 cents in 1898. Even
the latter price for freight transporta-
ton is significant of the companys ge-
ographical location.