The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1903-09-21
STEADY GROWTH
OF RIO GRANDE
ANNUAL Report of President JEFF
fiery Very FIattering.
BRANCH LINES ARE PAYING
DETAILED STATEMENTS OF NET
EARNINGS AND DIVIDENDS.

The annual report OF President r. T.
Jeffery of the RIO Grande railroad,
which has just been issued to the stock
and bondholders. contains long and
detailed account OF the enormous con-
structiOn work done during the past
twelve months. and what is being done
now, and outlines future developments
contemplated. He points TO the fact
that smaller branch roads are paying.
thereby fulfilling the expectations Of
the management and making good the
promises made i'm the IiasJ TO both
bond and stockholders. Other sections
of the report are devoted to describing
recent bond issues, what was done
with the money, and explaining what
is 10 be accomplished i'm the future
with the surplus
The annual report is accompanied by
detailed statements showing where the
decrease i'm maintenance has occurred
where the net earnings have de-
creased, and comparative figures since
1872. The report of President Jeffery
Is as follows:
Branch Roads Are Paying.
In the last annual report your directors
referred 90 the construction of a branch
from Delta station along the north fork
OF the GUnnlsOn. known as the NCrJn
was being done, for convenience under
the charter of the Rio Grande Railroad
company This branch. forty-three miles
long. through a valley prolific I'm farm
and orchard products. and in the proNlm-
lty of large coal deposits WAS completed
and placed under traffic about the close
OF 1902. To has thus far fulfilled the eX-
pectations OF the management and al
ready given assurance of being a Vdiu-
able addition 10 the system.
For convenience i'm operation and ac-
1cct to your approval at the coming an
> nual meeting has been taken over by the
Denver & Rio ftrande Railroad company
and nearly the entire cost Of 70 has been
paid for by the proceeds OF SSj0.01o first
consolidated mortgage { per cent bonds,
being part of INC 5000 6O1 reserved un-
der the terms OF the mortgage for Ger
tain purposes set forth fully in former
reports.
New improvements Made.
A year ago your attention was called to
the construction Of the Castle Valley cut
off on the Rio Graude Western railway,
commenced I'm the spring of 1902, and you
were informed that a contract had been
let for twenty-one miles Of grading. This
portion of the line has been completed,
but no further contracts have been let
nor is il contemplated to extend the
branch during the current calendar year
To cover the cost of the constructed mile
age. 100000 Rio Grande Western first
consolidated mortgage 4 per cert bonds
were issued.
In former reports IL was sta -. that
the work of standard gquging the Creede
branch was in progress and that year
9gO fourteen miles, from Monte Vista To
Del NOTte. were changed from narrow TO
standard gauge. This work was cOntin-
ned during the year covered by this re-
port for a further distance Of thirty-ninc
miles. to Creedc. an important mining
district az the end Of the branch so thar
the entire line from Alamosa 90 Creole. a
distance Of seventy miles Is now stand
ard gauge. Nearly all the cost of this
work has been charged 20 operating eX-
penses dUrinE the last three OF four
years.
Increase in Road Equipment
Your directors desire TO call your at
teution TO the large Increase in the
equipment of the system In the last two
gauge locomotives. twelve narrow gauge
locomotives. twenty standard gauge pas
spnger coaches two baggage. mail and.
express cars. one dining car and 45)O
freight ears OF various classes.
Their reasons FOR making these large
additions to equipment is the growing
business. both passenger and freight. I'm
tho territory tr2VeUsed by the system. and
more especially iu the coal output of the
Colorado Fuel g. Iron company. the priU-
Cipal coal and coke producer IN Colorado.
a large portion OF whose traffic is trib-
utary 20 your system; together with the
growth en- business of the Utah Fuel COM
pauy. which Is controlled 10y YOUR COM
Tany, and whose development has been
quite gratifying.
It was therefore 90 meet the demands
OF the growing business that YOUR direc-
tors considered 30 prudent to- arrange for
large additions To the freight equipment,
and further additions are under cOnsid-
+. r. JEFFERY.
President.