Grand Island, the Union Pacific Coal Company, the Pacific Fruit Express (in which the Union Pacific has a one-half interest) and various land, terminal and water companies. Of greater interest is the ownership of securities of non-affiliated companies, carried on the December 31, 1926, balance sheet at a value of $160,000,000. Stocks of such companies having a par value of $71,500,000 and carried at a value of 90 million dollars included those of the Baltimore & Ohio, the Chicago & North Western, the Chicago, Milwaukee & St. Paul, the Illinois Central, the New York Central and the Railroad Securities Company (which holds an additional block of Illinois Central). The list of bonds, notes and equipment trust certificates of non-affiliated companies had a par value of $79,000,000, carried at $70,000,000, in addition to which there was reported ownership of Liberty Bonds and United States Treasury notes aggregating $32,000,000. The dividends received from stocks owned totaled in 1926, $9,000,000 in round figures; from bonds and notes, about $6,000,000, in addition to which there was interest of about 14 million on loans and open accounts, making a total income from these sources of about $16,100,000. The Union Pacific paid out in 1926 not quite $18,000,000 in interest charges on its own funded article figures from the Union Pacific balance sheet as of December 31, 1926. It may be presumed, however, that when the annual report of the company is made available late in April, while the figures may be different, the general relationship probably will not have greatly changed. Certain Operating Characteristics The Union Pacific system includes, four constituent companies, operating a total of 9,678s of railroad. The Union Pacific Railroad operates the main stem of the system between Omaha and Ogden and the Kansas division from Kansas City to Denver. This portion of the system is the busiest and most prosperous part of it. Although including less than 40 per cent of the total mileage, it carried in the first 10 months of 1927, 611⁄2 per cent of the system's net ton-mile, collected 56. per cent of its total operating revenues and earned 71 per cent of its net railway operating income. The Oregon-Washington gives the system its entrance into the Pacific Northwest and is joined with the parent stem by the Oregon Short Line. The Los Angeles & Salt Lake similarly carries the system to Los Angeles and southern California. Inasmuch as portions of the system extend into the Northwest, it is interesting to determine whether even Union Pacific, Operating Results, Selected Items Year ended June 30, 1916, and calendar years 1920 to 1926. Average mileage operated Net operating revenues Hire of equipment Net railway operating income Gross income Interest on funded debt Total deductions Net income Preferred dividends (4%) Common dividends-rate Common dividends-amount $104,717,005 $209,049,510 $181,445,913 $192,877,122 $211,318,465 $199,035,118 $198,039.901 $205,416,264 131,601,749 143,846,229 152,249,080 141,611,098 138,842,480 140,769,540 58,582,770 46,134,234 5,310,698 40,823,536 Cr. 220.155 11,751,744 52,670,649 1920 8,192 1921 8,205 156,939,935 40,918,906 39,261,267 4,331,904 6,528.971 4,172,396 7,331,211 4,725,372 7,564,737 7,888,049 9,473,676 8.122.395 8,725,895 8,893,880 6,156,427 6,008,541 6,433,990 6,103,127 5,909,971 12,298,957 48,261,218 13,810,313 15,419,279 13,881,505 15,586,987 13,138,088 15,749,563 17,513,567 47,364,255 49,245,880 57,173,812 15,914,445 16,430,877 16,879,477 16,063,180 16,906,157 17,251,606 31,301,075 32,339,723 39,922,206 3,981,740 3,981,740 3,981,740 10 10 10 22,229,160 22,229,160 22,229,160 $12.29 $12.75 $16.16 23,255,922 30,820,137 16,226,202 27,171,043 18,386,159 18,347,283 18,245,057 35,753,205 38,231,060 3,981,740 3,981,740 10 10 22.229.160 22,229,160 $14.29 $15.40 31,503,788 32,770,901 11,916,698 11,786,736 40,984,749 3,981,740 12,444,146 Revenue passenger-miles (thousands) 917,993 1,308,588 Revenue per ton per mile (cents) Average haul 28.55 Operating ratio 70.11 68.53 10 22,229,160 $16.64 34,534,148 13,211,550 983,164 1.178 NOTE:-Los Angeles & Salt Lake included beginning in 1922. debt, which amount, therefore, was not far greater than the company's receipts of dividends and interest on securities in its treasury. Capitalization and Assets The Union Pacific is one of the country's billion dollar corporations. Its total investments, exclusive of cash and other current items, at the end of 1926 totaled $1,084,000,000. Of this $836,500,000 represented the investment in road and equipment, and the better part of the remainder represented the company's holdings of securities. The capitalization, however, totaled $734,607,525, or less than the investment in road and equipment alone. Further evidence of the Union Pacific's extremely strong financial position is given by its profit and loss credit balance, standing at the end of 1926 at $203,740,000 in round figures, or by its total surplus account of $269,600,000-equivalent to over $120 per share of outstanding common stock. A certain apology may be in order for using for this sults and that most of the gain that it made was counteracted by losses reflected in earning power shown by the northwestern and southwestern portions of the sys tem. Service A book might almost be written regarding the excellent operation of the Union Pacific System. One really has to see the property to appreciate the high standard in which it is maintained. Outstanding characteristics include, of course, the famous Sherman gravel-ballasted track, the modern motive power and the excellent condition in which it is kept. Operating Efficiency A ready means of indicating Union Pacific operating efficiency is by use of its operating statistics. These are reported separately for the four companies and the latest figures available are those for the first 10 months of 1927. Considerable space would be required to show the figures for the four companies in any great detail, but it may serve to show the improving results by comparison with the figures for the first 10 months of 1920. The figures which follow show results for the first 10 months of 1927, expressed in percentage of increase or decrease from the results of the first 10 months of 1920: R Freight Car Loading WASHINGTON, D. C. EVENUE freight car loading during the week ended January 14 amounted to 906,734 cars, an increase of 152,672 cars over the preceding week, in which the New Year's Day holiday occurred, and a decrease from the corresponding weeks of 1927 and 1926 of 35,997 and 25,001 cars respectively. Loadings of grain, ore, less-than-carload merchandise and miscellaneous freight were greater than in the corresponding week of last year. Coal loadings amounted to 191,224, a decrease of 37,216 cars from the total a year ago. Loadings in the northwestern district only were larger than in the corresponding week of last year. The summary, as compiled by the Car Service Division of the American Railway Association, follows: Gross ton-miles COMMODITIES Grain and Grain Products.. -31 -21 3 Freight car miles Coke Forest Products Miscellaneous The fact that the increased train-load in each instance has permitted a substantial decrease in the train-miles that otherwise would have been required, is particularly noticeable. The increase in train-speed with increased train-load seems to be in keeping with ideals of presentday railroad operation, and proves to have been particularly beneficial in the form of the substantial decrease in the freight train-hours. The large increase in the gross ton-miles per freight train-hour-in the case of the parent stem amounting to 64 per cent-stands out and emphasizes the combined improvement in train-load and in the reduction of train-hours attendant upon the ability to move the business in fewer trains and to move the latter at a higher rate of speed. One drawback in the figures is the failure of traffic to show a more substantial increase. In comparing 1927 and 1920, the northwestern portions of the system seem to have suffered severely from loss of tonnage, which again evidences. that the Union Pacific System is no exception to the general conditions ruling on the railroads serving that territory. The Los Angeles & Salt Lake makes a quite satisfactory showing in its traffic growth, as in most other respects. The Union Pacific appears to be in a remarkable position among the American railroads, so remarkable, indeed, that investors more or less take its strong position for granted and do not appear to become very much excited about it. This follows probably because the property has pursued an even course from the standpoint of its dividend payments, earning power and operating efficiency over a long period of years and apparently may be expected to continue to do so for a similarly long period in the future. December 31, 1927 December 24, December 17, Cumulative total, 2 weeks.. 8,554 237,818 241,923 314,635 313,976 320,079 WORK DONE ON STREETS, roads, etc., in the elimination of railroad grade crossings is, hereafter, in the state of New York, to be deemed "public work," provided the legislature passes two bills introduce in the assembly on January 11, by Phelps Phelps of New York City. The adoption of this definition would put the work under the law requiring advertising for bids, and imposing the eight hour law and the prevailing rate of wages law, on the railroad company doing the work. A bill introduced in the New York Legislature on January 17, by representative L. W. Hall, would make it a misdemeanor to drive a vehicle across a railroad against a stop signal of any kind. F Western Railway Club discusses improved brakes and their OLLOWING a Dutch treat dinner and entertainment of unusual merit, the members of the Western Railway Club devoted their regular monthly meeting, held Monday evening, January 16, at the Hotel Sherman, Chicago, to a consideration of railway air brake equipment. Two principal addresses were made, one entitled "Improvements in Air Brakes" by C. C. Farmer, director of engineering of the Westinghouse Air Brake Company, and the other "Progressive Modernization of Air Brake Maintenance Practice" by E. F. Wentworth, representing the New York Air Brake Company. It is safe to say that not in many months has so comprehensive a treatment of air brake problems and achievements in design and maintenance been presented before any body of railroad men. The meeting was called to order by President W. G. Black, mechanical assistant to the president of the Erie Railroad, who introduced the speakers. S. G. Down, vice-president of the Westinghouse Air Brake Company, by way of introduction, traced briefly the 10 major developments in air brakes since their first practical application 60 years ago. L. K. Sillcox, assistant to the president of the New York Air Brake Company, referred to the improvements in design, and emphasized particularly the greater care necessary in handling and applying air brake valves and in maintaining foundation brake rigging. Other speakers included H. A. Johnson, director of research of the American Railway Association, and W. P. Borland, director of the Bureau of Safety, Interstate Commerce Commission. The following are summaries of Mr. Farmer's and Mr. Wentworth's remarks. Improvements in Air Brakes By C. C. Farmer Director of Engineering, Westinghouse Air Brake Company, In introducing his subject, Mr. Farmer quoted the following from the 1926, annual report of Herbert Hoover, secretary of commerce: "Probably the most outstanding single industrial accomplishment since the war, has been the reorganization of our American railways." Mr. Farmer then reviewed some statistical facts which showed that the railroads were utilizing their existing equipment facilities more intensively. Briefly, these figures demonstrated that the railroads had procured in freight service an increase in car weight, both empty and loaded, an increase in the average car load, an increase in the number of cars per train, an increase in the average speed of the train and an increase in the daily mileage per car. Obviously, the performance of the air brake had to be improved in order that it might contribute its proper share to the general improvement obtained in railroad. operation. This development work, he said, has been carried on by special engineering organizations numbering about 275 persons and at a cost in the development of new and improved parts, well on to $1,000,000 each year. Not only have new complete equipments been produced, but also much work has been done in the improvement of existing devices. Although a change in an existing device entails the production of an entirely new device, yet while difficult to evaluate. in dollars and cents, the saving accruing to the railroads in the way of reduced maintenance expenses and improved functioning is great. Incidentally, Mr. Farmer pointed out that it is a task of maximum difficulty to improve an existing device. without interference with the interchangeability of parts; without involving new and special manipulation which would require extensive educational work on the part of the railroads; without demanding some radical change in accepted operating or maintenance practices and under these limitations, to accomplish an improvement which carries with it the maximum of gain and the minimum of loss. Mr. Farmer first discussed the improvements that have been made to air brakes on the steam locomotive. Although the cross-compound type of air compressor had proven its adaptability to general service requirements and the infrequency of failures in actual service, suggested that there was no great possibility for improvement, he said that additional improvements in detail parts have been effected which increase the service life and reduce maintenance cost. The original cross-compound compressor was intended for a steam pressure of from 200 to 225 lb. Recent developments toward the use of higher steam pressures in steam locomotive boilers, has led to the development of a compressor which would operate at pressures much higher than 225 lb. At the present time, a compressor of the cross-compound type, suitable for steam pressures up to 450 lb., is under development. He also discussed at considerable length the effort being made to prevent grit and dust entering the compressor air cylinder and to improve the method of lubrication as well as the character and suitability of the materials used in making periodical repairs. Improvements have also been made in the design of the air compressor for satisfactory operation with superheated steam. He also discussed a number of improvements that have been made to air valves and cages with the object of obtaining more rugged designs and reduced leakage. The possibilities of the use of non-corrosive steels for main reservoirs have not been overlooked and considerable research has been done in this direction. He also outlined the improvements made to the feed valve. The present design of the M-type feed valve will maintain 70 lb. pressure at the head end of a 100-car train throughout the recharging period, something which cannot be obtained by the older types of feed valves. The brake valve used in locomotive equipment has for many. years retained its present structure and its performance has been very satisfactory. Within recent years, however, improvements have been made to this valve which provide for more prompt reapplication of the brakes subsequent to a release manipulation which has resulted in an overcharged equalizing reservoir. After considerable experimentation, means were determined by which the service port in the No. 6 distributing valve could safely be reduced in area so that the rate of cylinder pressure development on the en gine was held down to a value in substantial agreement to that obtained on the cars in the train. The location of this valve, he said, closely adjacent to the brake valve where service brake pipe reductions are made, caused its rate of reduction of cylinder pressure to be somewhat faster than that secured on the cars because the brake pipe pressure at the distributing valve drops more rapidly than further back in the train. This development of effective brake cylinder pressure on the engine and tender in advance of the cars, caused the slack to close in with a shock which varied with the degree of brake pipe reduction, train length, etc. This was followed by a jerk when the brakes were applied on the rear portion of the train. The improvement made to the No. 6 distributing valve will eliminate this slack action and do much toward reducing rough handling in passenger service. Passenger Car Brakes In reviewing the developments made to brake equipment for passenger cars, Mr. Farmer stated that prior to the World War, it was concluded that the only way to secure uniformly acceptable passenger train stops would be by means of electrically controlled pneumatic brake equipment to produce simultaneous action of all brakes in a train. Development work on this type of equipment was interrupted by the war, but was resumed in the post-war period. This work was recently brought to completion after a way had been found by which the desired results could be obtained by purely pneumatic means. The solution of the problem of incorporating quick service in a universal valve, one of the greatest in importance of recent date, permits the securing of satisfactory train slack action during service brake operation by the engineman without the exercise of that care and degree of skill formerly necessary but often not exercised on account of local conditions, train schedule requirements, etc. The overall result of this development is smoother train handling and a financial saving to the railroad. In discussing the interchangeability of parts, Mr. Farmer pointed out that the American railroads are so accustomed to complete interchangeability of brake equipment that few realize what a difficult situation. would be presented if brake equipment were not completely interchangeable insofar as its functioning was concerned. In Europe a variety of train brake systems have been used by the railroads in the different countries with the result that very frequently cars can not be interchanged because the brake equipments would not function properly when associated in the same train. This difficulty so interfered with international traffic and the steps to overcome it were so difficult of inauguration, that the Treaty of Versailles contained a stipulation whereby the various powers agreed to adopt a train braking system by which functional interchangeability could be obtained with their respective car equipment. The fact that it was felt necessary to employ governmental action to bring about interchangeability in Europe indicates how fortunate American railroads are that interchangeability of all brake equipment has been maintained. Mr. Farmer discussed at considerable length the operation and advantages of the quick service function incorporated in passenger car brakes. The decreasing of the time interval between the service application of a brake on the first and last car in a train, decreases the difference in the degree of brake efforts occurring in the front and rear ends of a train at any time during the application. This combined with the correct timing of the tender and engine brake applications results in a more gradual train slack movement and, therefore, smoother train handling. He referred to the results observed from the test run of a 19-car train equipped with improved car brake devices and roller journal bearings which was run between Washington and New York by the Pennsylvania. In discussing this test, he pointed out that perfectly operating brake equipment devices cannot completely compensate for defects in foundation brake rigging which cause non-uniform retarding forces to be developed on different cars in the same train. Freight Car Brakes This Mr. Farmer reviewed at.considerable length the development of air brakes for freight cars and also the investigation work that is now being conducted by the Mechanical Division, American Railway Association. He referred to the annoyance and delays experienced in recent years by roads having grades requiring the use of retaining valves on their equipment. Considerable of this trouble was due to the retaining valve springs being stretched by brake cleaners and also on account of improper repairs to the closing valves and seats. occasioned a request on the part of the railroads for the development of a structure in which the possibility of damage by workmen would be eliminated as much as possible. A study of the problem resulted in the development of a combined cap, valve and spring structure in which the compression or tension value of the spring could not be changed by unauthorized persons or the valve seat destroyed by grinding after the original assembling. Another development in freight car brakes is an improved type of angle cock having an extension at the pipe end so arranged that the angle cock is rigidly attached to a supporting bracket and the brake pipe is relieved of the strains incident to the cock being carried by the pipe. A new type of packing for brake cylinders has been developed which does not involve the use of leather. This development has been followed by replacing leather throughout all air brake devices by a compoThis has been of marked advantage because filler from the leather is no longer present to interfere with the proper functioning of the various valves. sition substitute. Special empty and load equipment has been developed for heavy freight cars such as the 120-ton cars on the Virginian or the 100-ton cars in service on the Chesapeake & Ohio. Cars of this class are, of course, not encountered in regular interchange service. Empty and load brake equipment was, however, applied to 2,000 70-ton cars for the Reading which are used in coal service on some extremely severe grades. These cars are sometimes offered for general interchange and may be found, more or less, throughout the country. In concluding his remarks on freight car brake equipment, Mr. Farmer referred to the single car testing device which was recently adopted as a standard by the American Railway Association. This device provides a convenient means for roughly checking the condition of the brake equipment on a single car without necessitating the removal of any of the equipment from the car. Air Brakes for Electric Locomotives Although the equipment for the electric locomotive is generally similar to that used on steam locomotives, Mr. Farmer stated that the major operating devices are all somewhat different in detail due to requirements brought about by two and sometimes four cabs to a locomotive and an equal number of sets of cab brake equipment. A special mounting has been developed through which the piping involved in safely interlocking the several cab equipments and accomplishing, from the leading cab, full control of the brakes on more than one locomotive, has reduced and simplified the equipment. Another recent development in electric locomotive equipment is a 150-cu. ft. displacement motor-driven compressor which has just passed the laboratory tests and is now ready for service tests on the road. This compressor is driven directly by the motor at 1,500 r.p.m. This high speed represents the most modern practice in compressor construction and many of its features parallel developments in automobile gas engine construction. Modernization of Air Brake Maintenance By E. F. Wentworth New York Air Brake Company, New York Mr. Wentworth said that without exact, adequate and continuous maintenance as well as thorough periodical testing, air brakes cannot be expected to function as intended and that inadequate maintenance prior to 1923 resulted in a steady increase in rough handling, break-intwos, slid flat wheels, undesired emergency, burst wheels and locomotive air brake failures until operating officers and others began to doubt the ability of the existing standard air brake equipment to meet the requirements of longer, heavier trains and faster schedules. He said, "Had the broad statement been made that the general condition of air brake maintenance, particularly on equipment interchanged, was deplorable prior to 1923, it would have raised a storm of protest, and at that time such a statement would have been branded as a misrepresentation of facts; however, I believe that now such a statement would be accepted without question and it is at present, the general belief that the lack of proper maintenance of existing air brake equipment at that time was largely responsible for the unsatisfactory results obtained. from its use, and also that when properly maintained, the standard brake is capable of fulfilling the requirements which present day service demands." Mr. Wentworth indicated that a considerable number of roads handling heavy passenger traffic or freight trains on heavy grades have for years been forced by necessity to follow a satisfactory system of air brake maintenance for locomotive and car equipment, these maintenance standards, however, being considerably in advance of the general condition. He said that if the recommendations made by the Air Brake, Traveling Engineers' and American Railway Associations and the laws enacted by the Interstate Commerce Commission had been put into effect systematically and simultaneously on all roads, the confidence in the prevailing standard air brake equipment probably would not have been lost. According to Mr. Wentworth, this lack of confidence due to careless maintenance conditions has brought about several beneficial results as follows: "1-By concentrating general attention upon the necessity of better maintenance, it will be remembered that an intensive campaign of improvement was started in 1923; the operating heads saw the wisdom of obtaining generous appropriations for that purpose, and the campaign has been faithfully continued up to the present time. "2-This campaign has proved to be so successful in reducing evils incident to the use of brakes, that it is very generally believed that saving in damage to lading and equipment and the general speeding up of the movement of trains in service, due to the decrease in delays and air brake failures en route, has turned the outlay in air brake maintenance to profitable account, and it is not probable that such appropriations will ever be materially reduced so long as the money is used wisely and continues to show the desired results. "3-The air brake manufacturers' attention has beem centered on the importance of keeping the quality of their product to a high standard and for several years they have continued to improve their shop practice by developing improved machinery, formulating the most exacting inspection and testing methods, to say nothing of the greater care employed in packing and shipping procedure. This improvement has been brought about by large in-vestments in shop equipment without increasing the price. We believe that these efforts are recognized and appreciated by those familiar with the air brake situation, as such. "4--Recommendations by the Interstate Commerce Commission that an improved freight brake equipment be developed, in which certain additional functions that appear to be desirable or necessary be incorporated, has resulted in the most elaborate and expensive laboratory tests that have ever been undertaken, and it is generally known that these tests are now being conducted at Purdue University, under the direction of the American Railway Association. Upon the completion of these laboratory tests and of road demonstrations in actual service, most valuable information will have been developed. The air brake manufacturers have not been indifferent to the requirements of general progress in transportation and have continually kept a very large engineering force at work in laboratory and field for the purpose of developing improved equipment and maintenance practice to keep pace with the general advancement. "In their efforts constantly to produce desirable features or additions in new brake equipment, they have met with obstacles that appear to be impossible but they persistently endeavor to overcome these difficulties, with the result that brake apparatus is constantly being improved, and yet, a maximum of interchangeability is maintained in order to get the best service from air brake apparatus in operation to keep our system of maintenance up to a high and practical standard. "This intensive campaign for better maintenance has also brought about at least three features that, unless guarded against, will prove expensive without giving any beneficial results. "1-There is quite a tendency, on the part of some supervisors and repairmen to change existing standard equipment before such changes are proved to be real improvements, and these changes are certain to result in an increased cost of maintenance, added storeroom expense and general unnecessary confusion, with no beneficial results. "It should be understood that standard equipment referred to, is not arbitrarily made by the manufacturers but is brought about through committees from the American Railway Association, Air Brake Association, and where safety is involved, the Bureau of Safety cooperating with the manufacturers, and after such standards have been adopted, they cannot be modified without the consent of those who have made them, particularly where equipment used in interchange is concerned. "2-There is also a growing tendency to demand a more expensive finish and precision in manufacture beyond the point of adding to general efficiency. This tendency, if carried to the extreme, will ultimately result in increased cost of production to the extent that increase in price may be necessary. Although the costs of production covering a wide range of items have greatly advanced, prices to the consumer have not been affected. |