The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1912-11-17
BUSINESS AND TRADE.

The chief business event of the week
is of sensational Importance. 1t is the
sale of the Bamberger railway line be-
tween this city and Ogden to Mr.. M, b.
lIereley, the great traction expert OF
Chicago. It is understood that nego-
tiations for the sale are practically COM
pletcd, and that they are to cover not
only the Bambergcr line from this city
TO Ogden, but the Eccles line north OF
Ogden, and the line southward to Pay
son and Ncpbi, The consideration for
the properties taken is said TO be $lo,-
100000 and Mr.. Simon Bamberger an
nounces that every cent of this will be
used i'm Utah, either direct in making
improvements and building, or in low
interest loans TO individuals for the
purpose of building up the city. All Of
which is splendid news for this region.
The system of interurban traction
which is indicated by this big transfer,
Will, undoubtedly, be q most valuable
asset paying venture Of high and per
manent quality. It is understood that
Mr.. Hereley has at his command ample
money to put through all of the enter
prises that he may contemplate. and to
add to the mileage OF the interurban
system which his negotiations will take
over, as rapidly and as extensively as
business foresight will Justify. 1t is
one OF the greatest transactions ever
negotiated in Utah, and it will, un"
doubtedly, be fruitful Of many exten-
sions Of transportation facilities.
Douglas White, industrial agent for
the Salt Lake Route, speaks enthusias-
tically Of improvements along that line,
and Of the great work that the Panama
California Exposition at San Diego will
do for irrigation.
The Chicago Northwestern Office here
has received authority to increase It's
field force in this territory on account
of increased business.
A dispatch from Denver indicates
that the Moffat road will be pushed
hither in spite of Colorado s vote
against the tunnel project.
Mr.. Kruttschnitt Of the Hartman
ditions as he found them in his recent
inspection trip over the line.
The Denver & Rio Grande is to spend
s3,000,000 in making detour around
Soldier Summit in order to reduce the
grade from four per cent as now, to two
per cent. Other great improvements
are contemplated by that road in its
line between here and Denver, includ-
inc a good deal OF work in Utah aside
from the Soldier Summit grade reduc-
ton.
W. T. Maddox, superintendent Of the
southern division of the Southern Pa
eific Electric Company Of Los Angeles,
has been chosen assistant general man
ager Of the Utah Light & Railway
Company of this city.
The general railroad situation from
the standpoint OF the railroad interests
is concisely stated in the following sum-
mary:
The compiled reports OF 80 per cent OF
American railroads show that their op-
Grafton for the year ending June 80, ls12,
cost SEQ mile more than II did Tor tme
the net operating revenues for these roads
Increased S23 a mile in the 1917 year thelr
net operating expenses Increased SS3,
These roads; comprising an aggregate ~
mileage OF 2l9,137. showed on June ~,
1912 total revenues from operation Tor
The year of S2.761,72 ,09S, an average, 1t
will be seen, OF Sl2.6oS per mile, Their
total operating expenses We're 81 ,9OS.lib,-
s52, or SS70S per mile. That left net
operating revenue OF SSoS,o44'64z. or S3oso
a mile.
This net revenue, 1t must be renem.
bered, represents gross income before any
reduction is made for taxes; rentals. IN
terest on bonds. appropriations for better.
ments or dividends, In this connection IL
may be said that taxes arc steadily on
the Increase For the month OF June, TINS
year. they amounted to s10ST9, Id6, or SAT
a mile, an increase Of 16.6 per cent over
II would appear from these figures that.
while owing to the natural enlargement
in volume Of traffic, the railroads OF the
country have earned larger revenues they
have not shared in the net prosperity Oh
the whole as much as they should, They
have had to meet increased costs or op-
Grafton on every hand. All the materials
ness continue to advance In price and
labor may be included In the list. The
roads, on the other hand. have not been
permitted to increase their rates as
means OF meeting this general advance.
The consequence. therefore, has been that
while operating revenues have gone up
s23 per mile over the last year, operating
expenses have increased SSS per mile, |
making a decrease In net revenues OF $50
a mile. an enormous sum. Coupled with
this Is still another Increase OF S4I a
mile in taxes, which. taken with smaller |
net revenue from outside operations, such |
as boat and ferry lines. electric railways |
and dining and chair cars, resulted In |
a diminished operating revenue Of Sill |
per mile for the year.
Some interesting facts are further |
out by a comparison Of the
groups Of railroads. In the Bast operat- |
ing revenues increased SdS3 mile. |
There We're increases In all accounts, |
the largest being In freight revenue. I
which amounted TO 1867 a mile, The total |
operating expenses in the Eastern group |
a mounted 10 S249 a mile.
In the Southern group the total operat-
Ing revenue advanced $o61 a mile and !
operating expenses S$3a. The net operet-
Ing revenue in this section decreased SITS |
a mile, or ST. per cent. This was the |
largest decrease actually and proportion |
ately Of all the various groups
The Western group was the only one TO
show an actual falling off In operating