The Yakima herald. [volume] (North Yakima, W.T. [Wash.]) 1889-1914, 1906-11-14
NORTHERN PACIFIC
A MONEY MAKER
INTERESTING DATA REGARDING LINE
Passenger and Freight Receipts Show
Marked Increase Over
Previous Reports


income "as reserve for the continuity
of dividends upon the preferred stock"
which now, converted into common
shares, sells at over 200. 1t was less
than two years earlier that the road,
then earning something like s20.000,00o
gross and $7,0o0,eo0 net a year, and
having rolled up a total deficit Of over
s14,000,000 in three years, was, after
reorganization, taken over by the
present company. Among all the mar
velous instances of growth within Il
decade from railroad bankruptcy to
railroad prosperity, none has been
more remarkable than that of the
Northern Pacific. With an increase
since 1886 of less than 1000 miles in
operated mileage, gross earnings have
risen to over SCI 100000 and net to
over s30,0o0,0oo. TO put II briefly, net
earnings are third larger than gross
were in 1896
The fiscal year 1906 proves to be the
banner year in this remarkable up
ward progress. a year ago gross
earnings for the first time passed the
s50,000,000 mark. Last year they in
creased $10,500, geo to over $G1,0o0,00
a gain of more than 90 per cent. In
stead of using all the added earnings
in increased operating expenses like
the Burlington, whose annual report
was reviewed in these columns last
week, less than half of the gain was
used in larger OUTLAWS. that there
was an increase of over $4,000 600, or
more than % per cent in net earnings.
nf l1p
more remarkable in view Of the then
wonderful gains Of 1905, whom gross
earnings increased over $i.ooo coo and
net earnings over s1,6o0,ooQ.
Nearly quarters of the $4,000
900 increase in operating expenses was
in conducting transportation Main
tenance of way stands at almost the
same figure as IN 1905. There was a
gain of 100000, or Il per cent in
maintenance Of equipment. No detail
ed statement of expense IS given 50
that figures of maintenance of way
cost $1SS7 per mile against 1882 in
1905. Again, without detailed figures
of expenses it is Impossible to accur-
ately locate the reasons for the in
crease of - per cent in cost OF conduct
ing transportation. Train load GER
tainly played no part in bringing it
about, for the average revenue lead
increase from 1886 tons N 1906 10
1000 tons last year. Including company
freight, the train load was aus tonf.
high figure for 5000 mile road. There
Is, however, another factor which ac-
counts for part of the increased cost
of carrying the traffic; namely, an in
crease in the percentage of "helping'
to revenue train mileage in both the
passenger ana freight department. The
fact that freight helping mileage made
up last year IL per cent of the revenue
train mileage shows that there is much
work still to be done before the road
has satisfactory grades and curvature.
Passenger results were most favor
able, due in part 10 the effect Of the
Portland Exposition, the latter half Of
which was included in The fiscal year.
The long distance Exposition travel
.sxa hown BY comparison Of the gain
n number of passengers carried with
:he number of passengers carried one
mile With - per cent more passen-
gers carried, there was an increase
Of 35 per cent IN the number Of passen-
ger miles, and the average distance
travelled by each passenger rose from
IS to Ill miles Including mail and
express, passenger department earn
ings We're $16,244,6 95 against S13,076,-
277 in 1905, a gain of - per cent. In
creases in the freight department We're
not quite SO large proportiopltely.
There We're S per cent more tons of
revenue freight carried ana 20 per cent
more revenue on miles. Freight de-
partment earnings increased S31S0,-
SS5, or 10 per cent. There WAS an in
crease per mile of road Of $547 in pas
senger and Sl219 in freight earnings.
The income account shows the
strong financial position Of this not
long ago bankrupt property and the
large extent TO which reconstruction
IS being paid out Of surplus earnings.
After all Payments for taxes, bond in
terest and rentals, there was a net in
come before dividends of $4,000. 0G0,
which is over $4,000, 900 larger than
IN the previous year The same amount
was paid out in dividends as in 1905,
so that II appropriations for better
ment out of income had been no larg-
er than that year. there would have
been a profit and loss surplus for the
stdi scr ny SotVVU,UuU IMAM III the
year of 1905.
1t was in the first full fiscal year
ia which the road was operated by
the present management. covering the
II months ended June 80. 1885, that the
first moderate charge of a little more
than 100000 was made against earn
ings for additions and improvements
In every year since that, more than
$2.000,000. and in most years as much
as $3.000,000. has been thus appropri-
ated. Last year, in addition to what
has come to be the regular annual
charge ar 100000 against income
for bettASments. 100000 was ap-
propriated Cor depreciation of equip
ment and Deer 100000 for the in
suranee fu. I. making a total spending
of over sS.o00,000 out of the earnings
for betterments. depreciation and in
suranee, as against $4,000 in 1905.
The average operated mileage on
June 80, 1906. was 104 miles more
than on the same date year earlier.