The silver state. [volume] (Winnemucca, Nev.) 1909-1925, 1912-03-16
". P. NEGOTIATING
S20,O0O,OOO LOAN


learned yesterday that the New York
conference between various railroad
bankers and officials Of the Western
Pacific, including President f. r. JEFF
ferry, Vice-President Schlacks and one
or two other representatives of the
Gould interests, is rapidly nearing an
end, and that thus far there is every
indication that the object of the con-
ference, which was to secure necessary
finances to develop the Western Pa
cific,will have been accomplished with
in few days. The Western Pacific
seeks loan of $4,000 900 with which
to improve its line and terminals and
build feeders-branch lines that will
tap the territory through which it
runs,
Just as soon as negotiations for this
loan are concluded, announcement will
be made of the Western IS plans for de-
velopment, and these, it is said, will
provide for such improvements as will
place the railroad in most vigorous
competition with its transcontinental
rivals, the Southern Pacific and the
Santa Fe
Tn this connection the Western will
have the advantage of the rehabilita-
tion of the Denver and Rio Grande and
the Missouri Pacific. The Denver
through its new president, Benjamin
+. Bush, who recently succeeded JEFF
ferry, announced last week that $780,
000, 900 would be spent Immediately in
improving its rail system in general
The Missouri Pacific is already in ex-
cellent shape, due, to large extent, to
the activities of Bush since Rockefel
Ter succeeded in placing him at the
head of that road. With these two
roads rejuvenated and the Western i'm
proved as planned, the latter will have
through transeontinental line in ev-
cry way equal to those of its com
petitors as far as service is concerned
Through Rich Territory.
| The Western is in dire need of
money The loan of $20,000.000 will
not be sufficient to hold it up until it
reaches a paying basis; but a second
+ loan of similar amount will hinge up
on the results shown by the first. The
Western, as it now stands, is practi-
cally without feeders. Although it
traverses territory rich in promise
without the necessary branch lines il
! is unable to obtain the required re-
suits. It's equipment is light-much
too light Only recently hearing be.
fore the railroad commission brought
out the fact that il not infrequently
had to borrow equipment frsm the
Northern Electric in that territory
served by both. And it has borrowed
much from the Rio Grande also. De.
.,rnct;caI apco,,ra ,ra ,,,ap+ For paxp
townsites, bridge improvements and
/ track development are few of the
things money is needed for. And
without money, it viii be unable ia
make a strong bid for the 1915 expo
sition travel
I The Western cannot longer continue
4 to be a drain on the Denver and Rio
| Grande treasury. The latter road now
proposes to take over the Coloradl
4 Midland, which is being operated
! jointly by the Colorado and Southern,
| a Hin property and itself But the
drain on the Denver has been keenly
felt. Since August |, 1911, it has had
to guarantee certain installments due
on the Western s sinking fund. Foi
all advances it was to receive promis
sorry notes of the Western, payable out
/ of the latter nrSt aVallaDle income
Drain on D. & r. q.
These advances were to be made
only in the event Of the proper avail
able income of the Western being
insufficient to meet them-a contin-
gency then regarded as remote. 1t has
since, proven far from remote, how
ever and the Denver has had to "come
through with the advances with regu
larity. An illustration of the West
ern 3 drain on the Denver's treasury
may be found in the fact that the Den
yer paid 1924, ,495, or 2h per cent on
its preferred stock in 1911, as against
50, ASS 800, or per cent, in previous
years Blair & Co., it is said, will
| figure in the loan now sought by the
Western. Vice President Schlacks
will not leave New York until the con
ference is at an end and its results
known.
The possibility of any member OF
the Gould family helping out the
Western is considered very remote
especially in view of recent changes in
the personnel of the so-called Goulc
system s heads, and the fact that the
Goulds are at present shouldering Q
great responsibility for other loans to
falling $50,0O0,000. Then again. eigh,
experts, employed by New York raj
bankers, went over the Western last
year and their reports are figuring
largely in the negotiations now pend
ing in the east.-San Francisco Chroni