Annual Report
Donald R. Paulson, President and General manager
Denver and Southwestern Railroad
June 15, 1952

For the second year in a row (1951 and 1952) we have had to purchase additional narrow gauge engines because of large increases in mining traffic. For example, the Barstow Mine, the Guston Mine and the Robinson Mine on Red Mountain have been shipping a total of 20-30 carloads of high grade ore to the Silver Lake Mill per week since early May.

Earlier this year we purchased the former Denver and Rio Grande Western (D&RGW) C-19 class 2-8-0 #340. Late last year we were also able to pick up D&RGW C-19 #344.

This engine became available from Keith Koch with the recent scrapping of the D&RGW's Bear Creek and Western branch line. The C-19s are particularly useful engines because of their ability to negotiate sharp curves that are impossible for the much bigger K-27 and K-28 class engines. These engines join a stable of three other D&SW narrow gauge engines: K-28 class 2-8-2 #478 purchased in 1951 (also from the D&RGW); K-27 class 2-8-2 #454 (built new for the D&SW in 1924); C-21 class 2-8-0 # 366 (built new for the D&SW in 1912).

Also working on the railroad are two engines of the San Juan Southern. These are 2-6-2 #51 which handles the local passenger business between Ouray, Red Mountain and Silverton, and 0-4-0 saddle tanker #10 which has been permanently assigned to switching the Silver Lake Mill complex.

We were recently able to pick up a steam shovel which once worked on the Silverton Northern. It is based in Ouray where it works on slides that plague the Red Mountain line.

The standard gauge D&SW is also prospering. One can stand on the Salida depot loading platform and watch as train after train of passenger cars leave for Denver to the North and Santa Fe to the south. Sandwiched in between these crack passenger trains are numerous freight trains. Below is shown a night shot of the baggage handler for the Denver/Santa Fe passenger train and a passing freight.

This month I have even seen a solid train of refrigerator cars running between Salida and Gunnison. Other railroads of the early 1950’s are losing business but the D&SW enters the second half of the 20th century with many years of prosperity ahead.

I also just leased an 0-6-0 switcher from the Frisco. It has been busy non-stop in the Salida Yards. This frees up one of our road switchers, which had been switching the yards, for freight service. The new 0-6-0 is shown below shunting a few coal cars in the yard.

The D&SW just obtained a used RDC car from the New York Central and it has inaugerated a new Salida to Montrose daily run. Just a few weeks ago we purchased 6 coal hoppers from the Norfolk and Western and, with the opening of Belden Coal Mine, we may may never get them painted in D&SW livery.

One of our latest locomotive aquisitions involves the leasing of Santa Fe GP7 #2678. In mid June it began leading the daily Montrose to Salida fast freight. It is shown below just entering the North Salida yard and passing the Tipton Chair Company plant.

The D&RGW has just retired their last L107 class 2-8-8-2 steam locomotive built in the early 1920's. We were able to obtain engine #3502. This monster locomotive was built to haul coal and you will soon see the big 2-8-8-2 leading a string of ex N&W hoppers from the Belden Mine to the Salida power plant. It is shown below on a shakedown trip with the Salida to Montrose freight. It has been completely overhauled and the D&SW stencils freshly applied.

A controversy has recently has developed over my practice of providing annual passes to local shippers. A sample pass is shown below:

The Denver and Southwestern Railroad

2003-2004 Pass: B1840

Between all stations until December 31, 2004
Unless otherwise ordered

President and General Manager

Our legal counsel, Mr. Matthew G. Paulson, based in Austin Texas, has strongly objected to these passes and also criticized my management of the D&SW. However, most of the shippers have vigorously supported my management as well as these passes. I have sent a letter to each member of the Board of Directors commenting on Mr. Paulson's allegations, all of which are groundless. Below you can see each of these letters:

Legal Counsel, Matthew G. Paulson's Allegations
D&SW President Donald R. Paulson's Reponse
Support from Local Shipper Robb Ruyle

The President/General Manager of the D&SW, Donald R. Paulson, can be reached via email at