The silver state. [volume] (Winnemucca, Nev.) 1909-1925, 1913-08-12
.S.P. LOSES MONEY
ON ELECTRIC LINES

Even though it is operating s77
suburban trains daily out of the Oak
land and Alameda moles, and has car
ried in the last year about nineteen
million passengers, the Southern Pa
ciic company is losing approximately
three and quarter million dollars
annually on the suburban electric
service in Alameda county. These
figures were made known today from
authoritative sources.
1t is said that the total passenger
revenue Tor twelve months ending
June 30, 1913, was $1.365. .7O7 IL
whlie the total expense was $4,613.-
zo2, leaving deficit to the company
of just $3,247 ,554.s5.
In the hearing before the California
state railroad commission few days
ago, G. w. Durbrow, an attorney for
the railroad, testified that, without
interest ON the forty-six million dol
lars invested in the properties, and
the taxes amounting to ffty-four
thousand dollars, the loss on direct
operating expenses, alone, was $364.-
900 for the year. Adding to this
amount the interest, taxes and other
hxed charges, the figures given above
are obtained.
The statement is made that in
these computations, ninety per cent of
the items are those exclusively for
electric trains and not for steam
trains. On the remaining ten per
cent, only that proportion is included
winch can properly be allotted to sub
urban service.
Inc meaning of this loss can be
better appreciated by talking in
terms of passengers and miles. For
every mile the Southern Pacific com
pany carried passenger on It's ferries
and trains on suburban trips. it re-
ceived less than a cent, while the
cost of the same service was tbres
times as great, or something like three
and sixth cents. That is to saw on
all of the nineteen million travellers
Ine railroad company lost two and a
hith cents Tor every mile it transport
ed each one of them. Or, again, each
passenger on the average, paid about
seven and fifth cents, regardless of
Instance, and yet it cost the carrier
twenty-four and a fraction cents to
serve him.
On every one of the nineteen million
passengers, the company was out a lit
Tie over seventeen cents for having
mad him as a customer
These statistics are taken from the
actual records of the railroad and
from the same reports as were submit
ted to the state and Federal commits
slons Their being brought to light in
a pubhc way is one of the beneficial
effects of the working of the public
utilities act. The people and the
carrier alike are benefited bv the
knowledge of the facts, for each is en-
titled to the worth of the dollar it ex-
pends.
Inc property investment of forty
SIX million dollars is In accordance
Alth detailed exhibit already fled
with the state railroad commission.
Interest on it at six per cent would
be two million, seven hundred and
seventy-two thousand dollars. 1t would
thus seem that the passenger earnings
are actually only one-half of the in.
terest charges alone. to saw nothing
Oh the cost of managing the business
ana OF paying the state taxes. Six per
cent IS taken as the interest rate in
order to be on conservative basis, al
though it is well known that, in the
present condition of the money mar.
ket, 1T is low. Were seven per cent
taken, the loss on the Alameda county
lines would be $462,0 per year great
er than $3,247 900.
1t is pointed out, further, that the
Southern Pacifi equipment at the
present time is new, and that, here
thersfore, the charges will be required
to keep up locomotives and ears.