Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1888-12-31
THE RAILROADS.
Tho Southern Pacific Company Has g
Successful Year.
Is. F. Alta, December 2Sth.

10 r. AHA, december Zotn.
The year just closing has been the most
profitable the Southern Pacific Company
has ever had. The returns of the last few
months show that the remarkable increase
OF business which was so noticeable in jan
uary and February has been maintained.
The total earnings have reached an enor-
nous sum, more than fulfilling Colonel
Crocker's prediction made in January, that
they would reach $40, 900 900. The operat-
ing expenses have kept pace with the in
creased income. however, for the reason
that the company at the end of last year
was in no condition to handle the enor-
nous tonnage awaiting transportation.
Though in a fair condition to handle a
S28,0OO,OO business, neither rolling-stock
nor road-bed were commensurate with the
requirements of traffic which rolled the
company's receipts up to so large a sum-
The great enlargement of traffic was mainly
brought about by the increase in popula-
ton. Its first result was freight blockade.
which caused incalculable loss; its second
dearth of freight cars all over the country.
IN ADMIRABLE CONDITION.
The company's property. however, is
now IN an admirable condition. There is
suthciency of motive power. sufficiency
OF freight-cars and of passenger coaches.
The road bed is in excellent condition a
double track between Port Costa and Oak
land facilitates the handling of business.
The equipment purchased and the improve
ments made, however, are all of the most
substantial character. Further additions
will be unnecessary for some time to come.
Thus, the returns for 1889 will probably
show much greater difference between
the earnings and operating expenses, allow
ing room for fair net income, which will
put the Southern Pacific Company on
| level with the other dividend paying in
situations OF the country, dignity it has
not yet reached. During the eleven
! months for which the returns are given,
the California and Oregon system became
| part of the Southern Pacific. Its revenues,
| though included, do not cut much of fig
| ure, nor do they account for the remark
able increase. This road is of greater
| future than present value, its present earn
| ing capacity being confined almost to
| freight business. In the appended table
| the returns given for November are esti-
| mated, the actual figures not being pre-
| pared. Those for the other ten months are
accurate:
ROADS. Earnings. Operating
Pacific $50 10000 S20774. OO0
Atlantic system............ II, $4,000 10Y, 600
,569, 0G0 SIS 900 900
The earnings thus show balance of $14,-
56S,000 over operating expenses.
For eleven months of 1887 the results
were as follows:
ROADS. Earnings. operating
Pacific system. 1872 900 sl3 $50, 900
Atlantic system. 100000 6,5SS, 600
Totals ,297, 900 81, BIS, 900
These two footings show a difference of
S13979,000.
If the December returns reach the aver
age of the preceding months, the total
earnings for the year will be nearly $47,-
100000.
In these totals are included the earnings
of the Central Pacific Railroad. Notwith.
standing its increased liability, caused by
assuming the payment of interest on por.
ton of the newly-constructed California
and Oregon Railroad, the Southern Pacific
has operated the Central Pacific this year
more profitably than in 1887. The com.
pany clears the rental on the Central Pa
cific, and without impinging On revenues
from other sources will pay the guaranteed
two per cent. per annum dividend.