Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1888-04-24
CENTRAL PACIFIC.
s,YNOP fICAL STATEMENT OF THE
DIRECTORS ANNUAL REPORT,
Showing Income and Expenses of the
Company Compared With
the Year 1886.


report yet issued by the Directors of the
Central Pacific Railroad is that just out,
and for the year ending December 81, 1887.
1t is our purpose to present it synoptically
in parts from time TO time Thus the
thought and exhibits of its chief divisions
can be examined with ease
The total miles of the road is given as
1,360.66 divided as follows: San Francisco
to Ogden, with five miles of leased track
from the Union Pacific Railroad and 5.S4
miles leased from the Sacramento and
Placeryille Railroad, 1888 % miles: Niles to
San Jose. II "a; Lathrop to Goshen, l46 O8:
San Francisco, Oakland and Alameda local
lines, 1731i Roseville to Oregon line,
$3.50. The average miles operated for the
year was 134803.
Inc company operates, also, steamers on
the Sacramento river and ferry and transfer
steamers on the bay of San Francisco. Also
Stockton and Copperopolis Railroad, 40
miles.
The income of the company for the year
was S2,920,036 81, from these sources
Rental to Southern Pacific CoS1, 200, 900 90
Dividend on stock owned ........... 900 90
sinking funds of company, for cash
paid Southern Pacific Company
and interest earned sO7ls ss
United States requirement paid by
southern Pacific Company ......... 4S6, 1877 %
Land 1929 80
Total go Os6 81
The disbursements were:
Sinking fund receipts, United States
requirement and land sales, as
above, applicable when used to
the payment of debt and not avail
able Tor 81 712 $50 81
Balance, surplus for year.........sl, 2o7, 200 90
Acd Items not heretofore carried to
income account, as shown by Sec
retaryS table, No. 5.................. SOP 3l9 50
Also surplus of income account De-
cember 81, 1856. 1860 271 n
Balance, surplus general income ae-
count, December 81. 1887 ,459 79l 81
As shown above, the Southern Pacific
Company was to pay rental for the Cen
trail Pacific of 81 200, 900, but the net income
of the Central Pacific for the year was 81, OS6,-
733 81. The Southern Pacific lost, there
fore, $ll3, 266 80 by renting this road. Or,
IN other words the Central Pacific Com
pany Is that much better off than it could
have been had it operated the road itself.
The accumulation of the several income
accounts are shown to be- Surplus general
income account. s. Ass, 791 81. For redemp-
ton OF land bonds, S., 429, 29S 46. For
sinking funds of company, $12, 800, 473 Sc.
For United States debt, $10,041 ,722 Is.
Total accumulated balance of income
account, 50, 23I, 2S5 II.
The operations of the Central Pacific
Company, under the lease to the Southern
Pacific Company for the year, were:
cross earnings. Sl3 1877 S44 IS
Ihese operating expenses, includ-
Ing land department taxes in
terest on floating debt, and rental,
were. 1869 2O1 60
Interest on funded debt.......... S,749,S l6
Sinking fund requirements paya-
Bile from earnings. ................... 2750OO 90
United States requirements under
the Thurman Act:.................,.,.. 4S6,1S7 %
Betterments and additions to leas-
ed property paid by the Southern
Pacific Company ....................... 220,s79 Sc
65l, I'LL 81
The net profit, as before shown. was
therefore the difference between these two
totals, or Sl.OS6.733 81. By which it is
proven that the deficit the Southern Pacific
Company had to make up was $l13, 800 SO,
as before stated. This deficit must be paid
May L. 1888, to the Central Pacific Com
pany.
In the items of betterments and addi-
tons aforementioned by the Southern Pa
chic Company to the property of the Cen
tral Pacific, are not included tracks relaid
with steel. or renewal of cars, engines.
buildings, bridges or other property. These
are included under the head of repairs.
The Southern Pacific Company has COM
piled with all the obligations of its lease. as
shown by the report
a very interesting comparative table of
earnings and operating expenses for 1856
and 1887 is given. All statistics gain their
highest value by comparative showing. In
this case they are especially valuable
1856. 1887.
Gross earnings...-si1 ,599 ass rs s1s 46S, s4s 70
operating expenses 5,6A,oH 80 IA, 155 IS
Earnings over ex
penSeS...............-.. 5954 Gil % I'D 6S6 81
percentage expenses to earn
lnSs-....... 1896 53O1
average miles operated...-.-.126 ,976 134, 1903
Gross earnings per mile....-s9,1S5 IS s9,9S7 70
operating expenses per
mlle..--- AS 81 5297 as
Earnings over expenses per
inlie 4,6s9 Sc 1850 81
" 1t may be briefly stated" saws the re-
port, that the increase in earnings from
through traffic is owing to the better main
tenance of fairer rates ON local traffic. to
the growing prosperity of the Pacific coast.
the construction of the Oregon division,
adding to the operated road and to charg-
Ing transportation on all company supplies.
The chief causes of the increased expenses
are, increased train service and facilities,
increase of road operated, and larger ex-
penditures for maintenance of the line and
equipment"
The report further says that local traffic
was carried at low rates to develop business
along the lines in California. Ii is added +.
that the company feels that the prosperity
OF this State is on the increase, and the
promise was never so good as now. Central
and Upper California are beginning to be
estimated at their real value, and are at
tracing more and more the attention of
settlers from the Eastern States who have
heretofore located chiefly in Southern Cali
fornia
A review of other portions of the report
will be presented hereafter.