Daily capital journal. (Salem, Oregon) 1903-1919, 1913-08-12
ENORMOUS LOSSES
SUSTAINED BY RAILROAD
Figures Which Go to Show That Elec-
tric Lines Are Far From Pay
ing Any Dividends.
WHAT SOUTHERN PACIFIC
LOSES IN ALAMEDA COUNTY
Nineteen Million Passengers Carried
During Year, But 1t Cost More
Than Fare to Garry Them.
UNITED PRESS LEASED wrRE.I


San Francisco, Aug. l2.-Even though
it is operating ST. suburban trains dai-
ly out of Oakland and Alameda moles
and has carried in the last year about
nineteen million passengers, the South
ern Pacific Company is losing approx.
mately three and quarter million dol
lars annually on the suburban electric
service in Alaemda county. These fig
ures were made known today from au-
thoritatiye sources. 1t is said that the
total passenger revenue for the twelve
months ending June 30, 1913, was ST.
365,707l5, while the total expense was
$4,613,262, leaving deficit to the com
pany of just $3,247 ,554S5. In the hear
ing before the California railroad com
mission a few days ago, G. W. Durbrow,
an attorney for the railroad, testified
that without interest and the forty-six
million dollars invested in the proper
ties, and taxes, amounting to fifty.four
thousand dollars, the loss on direct OPP
Grating expense alone was three hun
dred and sixty-four thousand dollars for
the year.
Adding to this amount the interest
and taxes and other fixed charges, the
figures given above are obtained. The
statement is made that in these compu-
tations, 90 per cent Of the items are
those exclusively for electric trains and
not for steam trains Of the remaining
10 per cent, only that proportion is in.
cluded which can properly be allotted
to suburban service The meaning of
this loss can be better appreciated by
talking in terms of passengers and
miles. For every mile the S. P. COM
pany carried passenger on its ferries
and trains on suburban trips it receiv-
ed less than q cent, while the cost Of
the same service was over three times
as great, or something like three and
sixth cents That is to say, on all of
the nineteen million travellers, the rail
road company lost two and a fifth cents
for every mile it transported each one
of them, or, again, each passenger on
the average, paid seven and a fifth
cents regardless of distance, and yet il
cost the carrier twenty.four and frac.
tion cents to serve him. On every one
of the nineteen million passengers the
company was out little over seventeen
cents for having him as a custo.
mer, These statistics are taken from
tho actual records Of the railroad and
from the same reports that are submit.
ted to the state and federal commits
sions.
Their being brought to light in
public way is one Of the beneficial Of.
fects of the working of the public utili.
ties act The people and the carrier
alike are benefited by knowledge Of
the fact, for each is entitled to the
worth Of the dollar II expends. The
investment Of $i6,0OOOOO for property
is made up as already explained in dc.
tailed statement filed with the Califor
MIA state railroad commission. Interest
on S46,O0O,OOO at Q per cent would be
S2,172,OOO, 1t would thus seem that the
passenger earnings are actually only
about One.half of tho interest charges
alone, to say nothing of the cost of
managing the business and paying tho
state taxes.
Six per cent is taken as an interest
rate in order to be on conservative
basis though it is well known that in
the present condition of the money mar
ket, this is low, wero 7 per cent taken
the loss Of the Alameda county lines
would be $4,000 per year greater than
SS,24IoOO. II is pointed out further
that the Southern Pacific equipment at
the present time is new, and that there
fore the charges for maintenance are
comparatively light AS It gets older,