Show RIO 1110 SHOWS DECREASE Passenger Business Gains but Freight Revenues Are Lower CONFIDENCE IN THE FUTURE I President of Gould Lines Is Hopeful for Western Pa Pacific Pacific Pacific Pa- Pa Business l K T. T president of or th the Den ver rr Ii Rio Grande railroad 1 assures the stockholders that the thc Western from rout Salt alt r Lake Eake to San Francisco will probably be ue completed In lii about o months and before January 1 the thc ter ter- Cr- Cr minal facilities at al the west end cud will wm have been completed en enough u h to warrant war war- rant tho th lIP op opening of oC mlle miles for COI rat traC- fie fic In California This Tills Information I Ia given JI In ht tho no twenty second annual statement nt to the stockholders for tho tilt fiscal year ear June 30 fl 1 08 Pi Tho is la apparently a model of fa fa and antl complete Information reg tho the operation of ot the tile road and ami Is Ii It h. h strong trong contrast with the ito method methods adopted by some other corporations li I concealing transactions anti ami condition from Crom stockholders The Tho report shows i 0 decrease of or more than a half million net revenue although the cr department showed a gain sain All 1 Jl o of tin tilt decrease was In the lie period from Janu Janu- nr nry ary to Juno June of or this year Following Is Js the thc report The Tue Income o of your our company for the tilE fiscal year eaT ended June 30 0 0 includIng ing 9 00 99 Interest dividends am and other receipts de decrease decrease decrease de- de was a crease of ot as compared with wilh t the hI previous year ar The gross Jross revenue from rom operation oper was 30 39 being v less than the previous year tho operation operation opera opera- tion expenses were 10 being leIng be be- le- le ing a decrease of or 3 7 and the thenet thenet thenet net revenue was wa O a a. decrease de de- crease of oC Tile The percentage tae of or decrease In gross groas ro s revenue re was Z 8 per cent in lii expenses per r cent aill 1 In Ill net operating operating- revenue z G. G 81 per percent cc cent nt After Clel providing ln for or taxes tales all charges against a income including two dividends of 21 2 L per cent centt t ach aeh upon lipoti the preferred capital stock ml contributing 1 OOOO to the re real ren renewal re- re n newal al fund und there remains a surplus from the years ears operations of df f 1127 from which appropriation was made maele for or a additions and improvement to the tho plant of or 91 le leaving surplus curried carried to profit and loss iosa of oC a a. currid I Sa With the lie exception of June vouchers rs and payrolls payable In the ordinary course of or business during July there thero were no HO unpaid accounts o Ne c cHall Hall In Utah The Tue work of or strengthening the main mainlines mainlines lines with heavier ier rail was continued luring during the year and about aboul tons toils of oC pound S-pound steel were used to O OlaUs rails laUs of or lighter weight nearly nil all on the tho main maui line of the tile Rio Grande Western rh The 1110 released second hand rails were transferred 11 to other othe parts of o tho Ule sy system sya- sya tern tem to tu replace those of less carrying capacity While there wa was a decrease o of 7 1879 in frel freight hl ro there thero was an Increase of oC In passenger er revenues rev zev- during durin- the year the tile net nel decrease in gross operating revenue was 2930 all oP of which was in the six Ix months of oC January to June inclusive prior to which time Increases wore shown honn nearly nearl every ever month The i ti management of oC your your company ny Is co confident th it that t. t although there ma may b be temporary setbacks front from time timo to time a I much greater traffic than an any heretofore hereto hereto- toro fore oro carrIed ed will bo be developed In Cu future tUIe 1 L' L wherefore your our d directors conto conto con con- to submit for or your l liv two Con It t f C J. J ii First To Filst To con consolidate tho the Denvor 8 nio Ilo Grande and aih the tho Rio Itlo West West- Cst rn rn companies anil Brill extinguish the tile stock or tho latter company practically p till ull or of s wn own i by v 4 i s l n 5 S iv r jilo Grande company 1 ami tion if If tile the consolidation mot met your YOU approval to present a n. financial plan plait of oC the consolidated company compan sufficiently ly comprehensive to protect all underlying in ing mort mortgage a e liens at their maturities and to lo provide also for or future capital re requirements ro- ro In the tIle nature o of expenditures expendi expendi- tures hires for 01 betterments of oC and additions to lh tile the 1 property ert and th the construction or acquisition o of extensions to your SS S'S tem tern A A special meeting metin of ot the tile stockholders was called before beCore tho close of the ns fiscal 1 year for fot tile the d day of July 1903 1908 to tn consider E r the first of these propositions tons and It may not be out of or place to say that the tile consolidation was unanimously unanImously unan unan- approved b by more than three three- quarters of oC the tile outstanding tn capital tock stock of or your company Since ince then thell a second call has been for lOl a special h- h of or stockholders to consider cr and anal vote te upon the financial plan referred referred referred refer refer- red to that is the authorization of or an Issue of oC of or first and re refunding ro- ro fun funding ln gold bon bonds ls of or which are arc to be ho reserved to protect existing existing exist exist- In ing liens lien It is hoped and believed that hue rhe stockholders will indorse this on September 10 1905 the date dale set for the meeting as fully ull as they did elid the con- con oolf of oC tho ito two companies t l lirk rk on oil Pacific Im In view of o tho the Interest of oC your company cum com pany puny In tn tho the Western Pacific railway and the tile obligations It is under tinder to complete com corn this important extension of your In Informer Informer Informer system to 0 San Francisco explained former annual reports it should be belated 1 stated that at the date of ot this tills report leport limn lain miles of track arc laid more inure In the tile states o of Utah Utai Nevada and California Cal Cal- and the greater portion thereof ballasted that about 70 cent of oC the rhe grading Is done for COl the lie entire lino and about 68 per pel cent o of tho the tunnel alIt before tho tue work excavated and that wot 1908 terminal facilities in tn San dose i of oC Francisco alit and Oakland will be near warrant the enough 11 completion to I of ot at for commercial traffic opening In Call Cali line lino miles of oC the least 5 rumba fornia urna from froni It H Is believed that thal GO CO miles lom City west can be put puL in operation op OP- op- op Lake Salt Stilt e the same date dale Your di directors directors dl- dl rectors see by no r reason ason for modifying tho hue heretofore expressed about opinions enterprise but on the contrary this that in In th tile the opinion are arc to securing a much larger volume addition of or passenger an and freight traffic tra- tra enterprise enter enter- the tho the parent system fie fib for tor Itself considered 11 locally will bo be Price prise than sustaining self within a more time after it Its completion reasonable about aboul the be OC which H It Is 15 believed cd will close o of tile the current fiscal year |