As most here know, the Milwaukee Road had two electrified divisions on its western mainline: a 440-mile division in the Rocky Mountains, and a 227-mile portion on its Coast Division.
I’ve always wondered, what were some of the key differences between the two electrified divisions? For instance, was one division generally more successful than the other? Was one more efficient? Did one division save or cost the railroad more money than the other?
To start things off, according to a book I am reading, in the first 5 or so years of operation, the Rocky Mountain electrification gave the railroad a better operating savings over steam than the Coast electrification. The reason for that is because the Coast division cost the company about twice as much per mile to electrify than the Rocky Mountain division.
The Rocky Mountain electrification was completed in 1917, and the Coast portion was started later and completed in 1920. Unfortunately, war-time inflation hit during the construction of the Coast portion, driving prices way up. Here is how those higher costs impacted operating savings on the Coast division:
On the Rocky Mountain division, operating savings from the electrification vs. steam operations amounted to 21% per year for the first 8-1/2 years. Which after a 5% bond interest was paid, gave a net return of 21% - 5% = 16%.
But on the Coast electrification, because of the higher construction costs, operating savings amounted to only 7.5%. And after bond interest of 6%, net return was only 7.5% - 6% = 1.5%.
That figure of 1.5% suggests to me that the investment in the Coast electrification was barely above the break-even mark. So, the Rocky Mountain electrification appears to have been a much better investment, at least right in the first few years of operation.
Are there any other interesting differences between the two electrified divisions?