The Salt Lake herald-Republican. [volume] (Salt Lake City, Utah) 1909-1918, 1910-03-13
WESTERN PACIFIC
ASSURED TRAFFIC
Increased Freight Business in
Sight for Gould Extension
to Coast.
MUST EARN So, 900 A. MILE
THIS NECESSARY TO MEET FULL
INTEREST CHARGES OF ROAD.

The Western Pacific railroad. according
to unofficial advices, has secured con-
siderable traffic for the new line, and with
flood trouble eliminated and with passen-
ger service innovated about June 1, the
extension of the Gould system to the
coast gives promise of ranking high in
the western railroad world. Greatly in
creased freight traffic is assured the
system, and that it viii secure its share
of the passenger business is confidently
predicted.
Until the recent washouts, which tied
Up the road west of Wells, New, two
through freight trains were being operated
daily, in addition to the locals, the time
between Salt Lake and San Francisco
averaging six days. This through traffic
will be restored some day this week. A
new schedule between these points was
recently put into effect which called for
running time of 10l hours eastbound and
los hours Westbound. Owing to the ire
quent washOuts this schedule has been
maintained only on rare oc easions. An
official of the company said: Now that
the rainy season is about over, we expect
TO make the 101-hOur schedule regularly,
and when the road is thoroughly shaken
down, this time can be considerably bet
tered"
The traffic department is not yet thor
oughly organized. and the road has TO
date been depending upon the system 5
agents TO secure traffic for ii. WHAT
traffic the road has obtained has been
derived from It's NFDutQ allA4ialtOHS- It's
own agencies will soon be established in
the principal cities of the country, and it
will then be put on an active competitive
basis with the other lines soliciting
through traffic TO and from the Pacific
coast.
March Interest Paid.
The March interest on the company
so 100000 first mortgage bonds was paid
out of the sum set aside for that purpose
at the time the bonds were sold. This is
ion
count against which al interest pay
ments to date have been charged. The
semi-annual interest on the second mort
gage sinking fund bonds will next be due
on July l. The cOmpany's' directors have
not vet decided whether in the immediate
future interest charges will be taken care
NJ out of earnings or be charged up TO
construction account. Earnings develop
ments of the next few months will have
TO determine this question.
In order to meet the full interest charges
on both the first and second mortgage
bonds which amount to s., 600 per annum
per mile, the Western Pacific, if it can
operate at cost of 60 per cent OF gross,
must show earnings of over 5000 mile.
This, il is asserted, it will have no diff
Guilty in doing. Should il reduce It's opera
ating ratio to So per cent, earnings OF only
slightly over $500 a mile will be neceS-
sary. At G. per cent slO,39O would be re
quired and at 20 per cents Sl2slO0 mile
of gross revenues.
The ultimate earning possibilities and
cost of operation is of course largely
prOblematical at this time, and for this
reason officials of the company viii make
no predictions. Inasmuch as the road is
constructed along the most modern lines,
with heavy rail and standard equipment,
the cost of operation for the first year
at least can be reduced to a minimum.
Furthermore its grades are the lowest OF
any road over the Sierras. The maximum
grade in no case exceeds l per cent, or
% FEET rise to the mile. Westbound for
50. per cent Of its length the heaviest
grade is only fourteenth of l per cent, or
about 20 feet to the mile. It's nearest
compe titOrs have maximum grades rang
ing from 116 feet for the Central Pacific,
10 10 feet per mile for the Atchison.
Earnings Still Low.
The question of making reports of oper-
alton to the interstate commerce commits
sion has not vet been taken up by the
company's directors and the inference
therefore follows that earnings are not
sufficient to warrant the publication of
the figures. Necessarily some time must
Yet eiapse before the road is earning
enough for its keep. and still more must
elapse before it will be in position to
earn sufficient to take care of its interest
charges.
The real significance Of these figures
bears on the saving which this means not
only in the cost of operation, but in main
tenance and cost Of equipment as well. AS
a result Of its easy grades. the Western
Pacific can haul as heavy a train over
the summit of it's line with one locomO-
tive as the best of other existing lines
can handle with three, and it expects to
make as good il not better time between
Salt Lake and San Francisco.