Re: San Juan Extension and profitability

The following does not really answer any questions, but gives some insight regarding operations and financial conditions in the early 20th Century. By the early 1900’s, the D&RG (and its sister railroad, WP) were in poor financial condition and stock and bond performance was seriously effecting both the railroad and investors. A New York investment company was trying to get the railroad back into good financial order and to improve the physical condition by paying off the bonds which they held. A common practice of the time was to have a well known railroad official write a comprehensive report outlying the current status and proposed improvements of a specific railroad. This official and his team would make a whirlwind tour of the railroad, inspecting the physical plant, talking to personnel and reviewing management operations.

This was done on the D&RG in by L.F. Loree, who was president of the Delaware & Hudson from 1907-1938. Mr. Loree and his team of experts conducted their tour of the D&RG sometime in 1917 and submitted their report, known as the “Loree Report” to the investment company on September 17, 1917.

The narrow gauge lines were discussed at length with an entire section of the 250 plus page report devoted to review and feasibility of standard gauging the narrow gauge as it existed at that time. Loree’s conclusion was that, “attention should be directed to their betterment along lines giving greatest promise of satisfaction to the public and profit to the company”. These lines of “greater promise” included the Alamosa-Durango, Salida to Montrose and Crested Butte Branch.

This report is a very good read and provided some real insight to the condition and operation of the D&RG at this time. I believe that copies of this report are still available for sale at the Colorado Railroad Museum.

Mike Ramsey