Daily capital journal. (Salem, Oregon) 1903-1919, 1914-12-08
GIVES REASONS FOR
SLUMP IN EARNINGS
Mr.. KruttSChnitt in Report Ex-
plains Falling OFF in Rail
road Receipts

In the annual report Of the Southern
Pacific Company and proprietary com
ppnies for the fiscal year ending June
80, 1914, Chairman julius Kruttschnitt
Of the executive committee points out
some Of the problems which have con.
fronted the company during the year
Among other things Mr.. Kruttschnit'
discusses transportation operations, Of
which he says, in part:
Reason for Earnings Slumps.
"The large decrease in passenger
aud express earnings is attributable tc
deferred travel in anticipation of the
California eXpositions and numerous
cxpositions to he held on the Pacific
coast in 1915, the diminished transpor'
tation of labor incident to the post
poncment of new enterprises; the cur
taiment of excursion, tourist and CON
merciol travel by enforced economy
increased competition of interurba'
electric lines and motor vehicles and
reductions in express rates by the In
/ terstate Commerce Commission and Che
| Railroad Commission of California,
] NUlfI ufNUlllN " lfNNlNN ~ 4 W. wv =
| aud March Of this year.
Notwithstanding the yield of nor.
NAL crops in sections served by these
lines, there has been decrease in
gross freight revenue Of Sl772,OSlIh
due to substantial curtaiment OF
shipments Of forest products in Louis
lana and Texas, resulting from the in
ability Of the railroads TO make the
usual purchases of 3ross.ties and from
the postponement of other new con
struction requiring the use Of lumber;
the previous completion Of electric
power water supply, irrigation and
pipe line construction in California;
and the extremely conservative pur'
chascs Of merchandise.
Effect Of Reductions,
"Reduced rates compelled by influ.
cncc Of Federal aud state commissions
which were in effect during last year
and were not in effect throughout the
nreviois year resulted in n shrinkNgc
Of at lcnst 100000 in the gross reve'
nue. of these lines, and it is conserva'
lively estimated that cumulative re
iuctiuns Of this character during n pc
riod Of four years ending June 30 1914
decreased the gross revenue Of these
lines by at least tio00.0O0,
Rcterring 10 the government attack
on the right Of the Southern Pociti,
Company to control the Central Pacific
Railway Mr.. Hwttwhnitt concludes b.
saying;
"We believe that the rights and In
tcrcsts Of both companies, as well ~
the communities they serve, Justify and
: require the vigorous defense which The
management is prepared TO MAKE
agninst the demand of the government
for n disruption of our system OF
. roads
4 Mr. Kmttschnitt also referred to th,
n fact that there are now over 10000
o duckholtrrs In the southern Pacific
q and proprietary companies,
4 Mr.. Emttschnitt's figures on th
h losses To the company in rate rcduc
i Hons enforced by the interstate 'on.
Il mcrcc and state commissions may b
9 surprising 20 some, But the decline II
f freight and passenger earnings for O,
T. tohrr of this vcur, us compared viz
October OF l0l3-und October of l1l
VI was considered bad month--are eve
more So. Compared with the sum
y month of last vcnr the passenger cnrr
Ut ings Of the company fell off In Oct'
bcr OF this year t55lAsL or lp3 pc
cent whtlc the freight earnings drol
,ped s)QLiel, or 6,S per cent