ileposts Volume XI , No. 10 MAY, 1960 ' Milepost No . 130 Department of Public Relations WESTERN PACIFIC RAILROAD SACRAME NTO NORTHERN RY. TIDEWATER SOUTHER N RY . 526 Mission Street San Francisco 5, California Lee " Flash" Sherwood, Editor A. L. Lloyd , Associate Editor The Zephyrettes were incurring big, losses when they mode this running meet at Merlin January WP asks to 15, 1959, after two milli.on miles of service. ' Milepost No. 130: On a special run, a discontinue probability most of the decline in pat­ Zephyrelte stops for ronage has been due to the increased photo by A. L. Lloyd, Jr. Trains 1 and 2 use of private automobiles by the traveling public. With the general im­ N April 22 Western Pacific filed provement in the interstate road sys­ FEATURES Page O application with the Interstate tem that trend will undoubtedly con­ Spring Foliage Frames California Zephyr Engine Near Belden........ Front Cover Commerce Commission asking for per­ tinue. In addition, the loss has grown steadily to alarming proportions WP Asks For Abandonment of Trains 1 and 2........................ ............................... 3 mission to discontinue operation of local Trains 1 and 2 effective June 1, because of increased costs of operation Holiday Rail Tour............................................................................................................ 4 1960. each year, due primarily to increased How We're Doing.............................................................................................................. 5 The railroad's action was not a hasty wages and payroll taxes. 25th Street Ramp Remodeled..................................... .................................................. 6 one. The conclusion to ask for com­ The two rail diesel cars were placed First Prestressed Concrete Tie TesL .......................................................................... 11 plete removal of the trains was reached in service on September 15, 1950, re­ Promotions and Transfers.............................................................................................. 14 after many months of study. These placing the daily Royal G01'ge con­ Dear Editor: .................................................................................................................... 17 studies disclosed the fact that out-of­ ventional train which had been losing pocket losses from the operation have over $900,000 annually on an out-of­ WP Will Remember.................... ...................................................................................... 18 increased steadily, amounting to more pocket basis. To make the tri-weekly In Memoriam ................................................................................................................... 19 than $254,000 in 1959. This was about Zephyrette service attractive for Mileposts in Gold...................... ........................................................................................ 20 $100,000 greater annually than was the revenue passengers the railroad spent Caboosing .......................................................................................................................... 21 loss from the trains' first year of opera­ considerable sums refitting the cars, Our Incredible $750 Billion Federal BudgeL ................................ .. ......................... 29 tion. and incentive round-trip fares were also made effective. Railroad Lines ................................................................................................. .Back Cover Each year patronage has declined steadily and there is every indication After the first year's operation the that the decline will continue. In all trains showed a gross revenue of 34c 2 MILEPOSTS MAY, 1960 3 per mile and a cost of 88c per mile, had to make substantial cuts in the resulting in an out-of-pocket loss of budgets for road improvements, new How We're Doing $156,800. Despite continued efforts to equipment, and industrial develop­ The average load of the California 36 (about five miles west of Por tola) increase revenues and to reduce costs, ment. Thus, good judgment dictates Zephyr in March, 1960, amounted to is about 35% complete. out-of-pocket losses continued to that this $254,000 annual loss from 56.5% of the train's capacity. In March, mount. In 1957 the railroad lost the operation of Trains 1 and 2 can be * * * 1959, the occupancy ratio was 56.9%. small amount of mail which was being better invested for the benefit of share­ Two ballast jobs were commenced handled when the Post Office decided holders, employees, and the public * * * last month: two miles of track between Freight shipments in March showed to transfer the mail to highway service. alike, than by continuing this very Mileposts 876 and 878, about 65 % com­ increases in canned goods, perishables, plete; 3.75 miles of track east from Later, the Railway Express Agency large loss operation. decided to reduce its service by operat­ miscellaneous iron and steel articles, Milepost 870.25, also about 65 % com­ Western Pacific intends to continue products of mines, and paper and paper plete. ing only between Sacramento and Salt operation of the California Zephyr and Lake City. products. However, the effect of the * * * to maintain the top-flight reputation it heavier movement of those commodi­ Installation of the 6,200-foot car­ In the period from 1951 to 1959 the has achieved since it was first inaugu­ ties was pretty much offset by de­ cleaning and light repair tracks at cost of operation increased sharply, rated. On an out-of-pocket basis this creases in the movement of rock, sand, Stockton yard are about 96 % complete. primarily because of increased wages train does not make any substantial paid to the trains' operating crews, but gravel, lumber, certain steel products, * * * profit. Only 4% of the railroad's reve­ and automobiles and parts, and a lesser also because of increased payroll taxes. The railroad's 1959 Annual Report volume of Government traffic. For example, wages paid to enginemen nues come from passenger train opera­ was mailed to all shareholders on April (not includin g firemen) in 1951 tion. However, the indirect benefit * * * 13, and mailing to the employees will amounted to $51,000. In 1959 this out­ from operation of the California The relining with concrete of Tunnel be made early in May. ZephY1' can be very substantial. It is lay had risen to $70,000. Likewise, * * * wages paid to conductors and train­ the railroad's belief that the general March March men, plus the proportion of wages paid public tends to identify Western Paci­ RECEIPTS: 1960 1959 for express messenger service, rose fic, through its California Zephyr F rom our customers........................................................ $4,651,031 $4,912,740 from $66,000 to over $101,000. In addi­ operation, as a modern, aggressive Other income ...................................................................... 48,779 43,437 tion, payroll taxes increased from railroad with exceptionally high stand­ $6,000 to $11,000. There seems to be no ards of service. EXPENSES: prospect that these wage and payroll Wages, payroll taxes, fringe benefits........... 2,381,166 2,300,258 costs will decrease in the future, and Materials, fuels, other operating expenses................. 1,390,590 1,160,372 in all probability they will continue to Other taxes ....................................................................... 329,144 596,982 rise. Holiday Tour Net rentals for equipment and joint facilities ........... 55,809 96,387 The Bay Area Electric Railroad As­ Interest and fixed charges............................................... 183,573 178,525 LL funds reinvested in W estern sociation will run a 2,900-mile special Miscellaneous ................................................................... 35,755 39,295 A Pacific property must come from train tour over Memorial Day week­ operations. Many opportunities are LEAVING: end. The special will pass through available for reinvestment of these For improvements to property, seven Western states over Western funds which will help our railroad to purchase of new equipment, remain in a strong competitive posi­ Pacific, Union Pacific, Milwaukee, and payments on debts, dividends, etc .......................... $ 323,773 $ 584,358 tion so that it may improve its freight Southern Pacific railroads. service to shippers, locate more in­ Equipment will include reclining­ dustries, and operate with improved seat chair cars, sleeping cars, dining Holiday Tour . fares will be honored by all othel' lines efficiency generally. The railroad has and lounge cars, and an open-end ob­ (Continued from Page 4) except Milwaukee. not had enough funds for reinvestment servation car. Fares, depending upon taxes and 10 meals served by WP din­ Schedule, fare, and reservation in­ to carry out all the projects which type of accommodation, will include ing car crews. P asses will be honored formation may be obtained from WP's should be undertaken. As a result, it (Continued on Page 5) over WP for employees; and half-rate public relations department. 4 MILEPOSTS MAY, 1960 5 The old slruclure­ The new structure­ built in 1909. buill in 1960. Engineerin.g surveys were made by (I-r) Assist­ 25th street ramp remodeled ant Engineer Walter D. Klebo, Jr. Engineer AI· fred E. Adorns, Jr. Draftsman James A. Snyder. A NEW all- steel structure has re­ crete p latforms on which the new The structure was designed by WP's placed an old wooden gallows