The herald., 1893-07-21
1T is MAKING MONEY.
THE SOUTHERN PACIFlC'S EARN
TNGs FOR FIVE MONTHS.
a Report Prepared for Mr.. O. p. Hunt
ington - Tho Road Doing
Well Despite OPP
position.

There have been many stories circu-
lated of late about the financial copdi-
tion of the Southern Pacific railway, to
the effect that the company WAS embar-
rassed. The following from the San
Francisco Examiner is sufficient an
swer to all of such rumors
Since the company has been fighting
tho Panama railroad and the North
American Navigation company those
bondholders have been very solicitous of
knowing what the company was doing
in the war over rates and how it was
affecting the railroads revenue.
Probably they were not afraid of de-
fault in interest, in view of the fact that
such financial catastrophe has never
occurred in the history of the property,
bat at the same time they were seeking
information as to how the company was
prospering in the fight for busi-
ness between New York and San Fran
cisco in competition with the Panama
route.
THEIR EPoRT HE MAKES.
Mr.. Huntington has taken the trouble
to inform the people OF the operations
of the Southern Pacific for the frst six
months Of this year. The figures for
this period of time have just been made
up and he has embodied them in re-
port that was forwarded yesterday to
New York, Boston and London bankers.
The report was sent by telegraph yester-
day morning, 30 by this time the i'm
portant banking personages that he
wvoA IN tho, into1linonao
know exactly what. the figures are.
Between January list and May 31st
last the figures show, according to MI.
Huntington's report, that the Southern
Pacific earned in gross $40, ,147, ,297. For
the same period in 1892 the gross earn
ings were $1S, ,15l. 1852, or an increase this
year of 1895, lis. The net earnings for
the first FIVE months of this year were
sc, 6,141, 1888. For the same period OF last
year the amount was $5,779,217, 80 the
increase thus far this year over the same
period of last was net amount of 1862,
l15.
CONSIDERED FAVORABLE.
This net increase is pronounced very
favorable at Fourth and Townsend
streets. because during March, April and
May the fight was in full blast with the
Panama railroad. There being an in
crease in net earnings in spite of the
low rates is accounted for by the rail-
road people in two ways. First, be-
cause the low rates produced an increase
in New York shipments to California
over the Southern Pacifc's Sunset route
that more than Offset the decrease in
rates; second, on account of an increase
in the local business in California
and Texas. The increase this year
over the year before in local Texas bust
ness has been very noticeable, fact
that has caused jubilation at Fourth
and Townsend streets.
It has served to offset the war in trans-
continental rates very materially. With
out the increased local business in Tex
as and California, it is said, the company
would have about come out even ON the
first five monthe' business this year, as
compared with the same months of
1892. But with the local increase men
toned, the amount on the right eide of
the ledger is considered very encourag-
ing.
FURTHER REDUCTIONS.
The June rates from New York being
very low, the earnings for that month
may reduce very considerably the net
earnings of Mr.. Huntington's report of
yesterday, but it is said the loss for June
will not by any means wipe out the net
earnings for this year in excess of the
amount earned for the same period OF
last year. The low rates for the first 15
davs of July will also tend to reduce the
net figures of Mr.. Huntington's report,
but very prominent official said yeste,-
day that this additional reduction would
still leave small net profit.
The advance in New York rates that
went into effect on last Monday are ex-
pected to at least maintain the earnings
of the company up to the level of last
wear. 1t is admitted that there will be
a decline in the volume of shipments
west bound from New York from now
on. but an increase in the rates is ex-
pected to about compensate for the de-
creased tonnage.