New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-10-26
Southern Pacific Operat-
ing Revenue Shows De-
crease of SS,654,5S3.
NEW RATES EXPECTED
TO CHECK DIVERSION
Kruttschnitt Sees Prospect OF
Better Earnings If Conf
dence Returns.

Connection by the Panama canal,
according 20 the Southern Pacific's an
nual report made public yesterday. was
the main reason for decrease in the
company's operating revenues during
the year ended June 30 last Of 1884,
j83, total gross being $l29,S65,675. In
this connection julius Kruttschnitt,
chairman of the board, says:
"Sincc the opening Of the Panama
Canal, August 10, 1914. competition mas
been intensified and the gross revenue
Of the lines Of this company has been
considerably reduced by large In
crease in the number, capacity and
salings of steamships between Atlantic
and Pacis ports, which, by material
reduction Of rates. have taken sub
stantal volume Of freight that was for
merly shipped over transcontinental
railroads"
Mr.. Kruttschnitt points out, however,
that a readjustmcnt of rates is now
being made which is expected 10 check
the diversion Of traffic to the canal
steamship lines. He also states that tn,
prospects of better earnings during the
current fiscal year are encouraging, but
adds that the extent of the improve
mert will depend upon the return o.
general confidence in the business
world, "the destruction of which with
out doubt, has been the most potent in
fuence that has held back revival Of
business and investment In new erter-
prises."
The report estimates that from the
beginning of the Madero revolution in
1910 to June so. 1915, the cost OF South
ern Pacific property destroyed in Mex
leo Appropriated S1.5G2 900, or 3.l24.-
600 pesos. ON account Of these losses,
the company filed claims with the Ma
dero government amounting TO $2S7 953
pesos, which have not yet been paid
In addition. there are claims for freight
and passenger service performed, for
rental Of road and equipment. and for
material furnished 10 or confscated By
the various military authorities
amounting to 5,0sS,Q00 pesos. Bills for
this amount viii be fled as soon as
conditions warrant.
The net operating revenue for the
fiscal ycar ended June 30, after taxes,
was S35,6S9.6l4, a decrease of only
S2.0o5, 753, owing to a saving of $685.
42i in operating expenses and s791 .351
In taxes. The years surplus available
for dividends, $l9.620,59j. was equal 20
70 per cent on $272G72, +05 common
stock, compared with rs per cen.
earned on the same stock in the 1914
fiscal year.
Confidence is expressed by Mr.
Kruttschhi.t in the companys ability
successfully 20 defend the various suits
brought by the government, among
which are the latter's attack on the
Southern Pacifc's title 10 oil lands I'd
Che attack or the title 70 the Oregon
& California Railroads lang grant
On the latter litigation Mr. Krutt-
schritt says:
"ft would rot be profitable or ox-
pedient at this time 20 speculate upon
the possible action of Congress The
railroad company will be prepared TO
cooperate with Congress in securing
appropriate modification of the orig
inal restrictions upon the sales Of
lands, but it will insist upon observ-
ance Of the condition that the full
value conferred by the granting acts Is
secured TO it,"
Mr. Kruttschnitt also refers to the
Seamen's or In Toilette act, which
forced the Pacific Mail Company out Of
business. and remarks:
"The company cannot continue OPP