The silver state. [volume] (Winnemucca, Nev.) 1909-1925, 1911-05-20
FINANCES Of THE
WESTERN PACIFIC

The Boston News Bureau has the
following comment on Western Pacific
finances:
Western Pacific construction ac-
count will be closed June 80. after
which earnings and credit will be ex-
pected to provide for current operat-
ing and interest requirements. When
the first mortgage bonds began to
draw interest September /, 1905, It
was charged to construction account,
as expenses have been since the line
was opened for traffic over a year ago.
Revenues from traffic have been cred
tied to this account and for this rea-
son officials have in the past year de-
clined to reveal what revenue progress
the road was making.
with the new fiscal year earnings
will be published monthly. and owners
OF Western Pacific and Of Denver 4
Rio Grande securities will be let into
the secret of the formers earning ca
pacity.
cific will have charged to construction
$14,50O.0O0, or five and one-sixth
years interest on first mortgage bonds.
As proceeds of sale of the $50,O0O.00O
firsts with bank interest amounted to
only $48.0S8.000. with the property has
actually received the benefit Of only
about $34.000,O00 from this issue. In
addition Western Pacific sold $25,O0O,-
600 second mortgage bonds to the
Denver. which, with interest, realized
s1S,7S4.000. Denver had further ad-
vance to June 80 last $4.6O6. 900, real
lied largely from sale of 100000 of
its own preferred. Western Pacific's
total cost and interest up to June 80,
1910. amounted to $70.438.000, exclu-
sive of accrued interest on its second
mortgage bonds. Denver carries on
its books a deficiency charge against
Western Pacific which amounted to
$5,579.000 on June 3. 1910. At pres
ent the charge probably exceeds that
amount by $2.00O.O0O.
although bringing the Pacific coast
extension to the producing stage has
exceeded original estimates by over
s25. 100000. the new line is expected In
a reasonable length of time to Justify
the additional burden placed on Dem
ver's finances.
I'm the first half of the present fiscal
year the company was said to BE-
earning close to $1,000 per mile per
annum. Under better business condi-
tions it should easily exceed this
amount Its modern construction and
easy grades will eventually make low
operating costs possible. 1t pene-
trates the largest fruit section of CAL
tfornia, and in Nevada one of the
largest virgin timber regions in the
West. estimated to contain over 100.
100000 carloads. Through Nevada
and Utah it penetrates regions Of
abundant water supply and great irri-
CATION possibilities. For this reason
Western Pacific is expected within two
years to earn gross of between $4,000
and $4,000 per mile.
AN important factor is the traffic
contract between Denver and Missouri
Pacific. which provides for operation
Of main lines Of those companies and
OF Western Pacific as a joint through
line between st. Louis and San Fran
cisco. Improvement in operating con-
ditions on Missouri Pacific. now fairly
assured. will be followed by corre-
spending increase in through traffic
between these points. Geographically,
no other trans-continental is better sit
uated to secure this through business
nor has any other line as favorable
grades over the Sierra as the Western
Pacific"