Monday, Dec. 29, 1952

U. P.'s Buildup

The 9,867-mile Union Pacific makes more money than any other U.S. railroad, but spends it freely for improvements. Though only sixth in rail mileage and fifth in revenues,* U.P. plowed $102,300,000 this year into one of the biggest building programs in its go-year history. Last week President Arthur Stoddard fired up U.P. for another big expansion.

Two years ago, he had ordered ten General Electric gas turbine electric locomotives--the first ordered by a U.S. railroad--at a cost of $5,400,000. Last week, with only six delivered, he ordered another 15 for $8,600,000. After running his turbine locomotives on U.P.'s mountainous track between Ogden, Utah and Green River, Wyo., Stoddard was convinced that they will revolutionize railroading even more than the coming of the diesels.

For most railroaders, gas turbine engines are still too risky a proposition. But U.P.'s board of directors has faith that Stoddard is on the right track. Nebraska-born, Stoddard joined U.P. as a $30-a-month station helper 36 years ago, has been with U.P. ever since, except for stints in both wars. A colonel in World War II, he served as adviser to the Iranian National Railway, which helped carry supplies from the Persian Gulf to Russia. In his 3 1/2 years as U.P. president, the board has let him run things pretty much his own way.

The U.P.'s turbine locomotive, which some workers call "Messy Bessie," packs more power (4,500 h.p.) into less length than the diesel, and burns cheap bunker oil for fuel. General Electric hopes that some day the engine will run on coal. As the biggest producer of coal west of the Mississippi. U.P. could get the full benefits of such a locomotive.

Though gas turbines will ultimately be cheaper to maintain than diesels. they have disadvantages. They burn almost as much fuel while idling as when running full blast, thus are not efficient on short hauls or stop & go passenger trains. But they are ideal for hauling fast freight over U.P.'s mountainous track and can, like a diesel, run 300 to 400 miles without refueling or stopping for water. By using them only on such runs, Stoddard figures that U.P. will save on maintenance, and pile up plenty of know-how against the day when gas turbines are improved enough for general service.

-Last year U.P. earned $68.8 million, nearly $1,700,000 more than the second-place Santa Fe on 11 % less gross revenue. Oil operations produced $31.5 million of U.P.'s total.

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