Douglas daily dispatch., 1926-04-14

Ar abstract of the Southern Pacific
company annual report touching on
! the great volume of freight traffic
moved over the Southern Pacific lines
in the year 1925 has been received
here by w. w. Windham, agent for
the S. f. in Douglas.
1t states that the volume of freight
traffic moved over Southern Pacific
lines in 1925 was the largest in the
history of the company, exceeding the
previous peak year of 1917 by 8.66
per cent notwithstanding a drought
which @ tended over about 1000 miles
of lines in Texas and which material
ly affected traffic.
The total operating revenues of the
company for the year amounted to
$293, ,O74,553 and were also the largest
in the history, of the company. In
creased cost of materials and increased
wage rates enlarger operating ex-
penses, however, 50 that the net rail
way operating income of the com
rany was 50,313,759, or, $161,727 less
than the ent income Of 1924. This is
shown in the annual report of the
company to it's 1888 stockholders, as
given by Henry w. de Forest, chair
man of the executive committee, and
made public today by President VIM.
Sproule.
The net income was q return of 3.77
per cent on the book value of road
and equipment of lines in the trans
portation system, compared with 3.99
per cent in 1924. The average return
for the past five years has been 4.04
per cent on Ill per cent less than the
fail return conteri plated under the
transportation act.
'rhe company earned $9.57 on each
share Of the capital stock from ope-
rations of it's transportation system
and 81 cents from the operation of af-
fillated companies or a total of $10.1S
on each share of stock. Dividends to-
taling Sc a share were paid to stock
holders of the company in 1925. The
fact that large amounts were put back
into the property in improvements to
facilities and equipment is shown by
the statement that the net increase
in investment in road and equipment
in 1925 was $83,O33,763 while the fund
ed debt increased only $66,9S5,217.
According to the report Increases in
.
operating expenses by $1,615,OOO while
increases in prices of fuel added $1,-
$4,000 more
Passenger revenues declined on both
TIE Texas and Louisiana lines and on
the Pacific lines, but the increased
freight traffic on Pacific lines more
than made up for the decrease on Tex
as and Louisiana lines due to the un
precedented drought in Texas. Il,
Mail and express revenues show a
decrease of $1,183,62 all in express
revenue and is a result, principally,
of the 10 per cent reduction in rates
made by the interstate commerce conn
mission in June, 1924, and to an adj
justment of class rates made by the
commission effective May j. 1925, both
os which affected particularly the in
termountain and Pacific coast terri
tories.
"On the Pacific lines" says the re-
port, "a decrease in shipments of cit
rus fruit. i'm the first part of the year
due to frosts in the winter of 1924.5.
was overcome by increased revenues
from automoHi1es, lumber and mineral
oi!s, and by th;, summer and fall move
menJ OF pToCuclS' SucH eS StePeS' Aet
tuce. deciducus fruits, and vegetables,
moving to eastern markets in refrig>
orator cars, the result being an In
crease in freight revenue, compared
w!1n 1924, Of 57,238,S2O. Much of this
traffic moved in few peak months
of the year, severely taxing our fa-
cilities. Notwithstanding this condi~
ton, it is gratifying that, by inten-
sive use of available rolling stock, we
were able to handle the traffic with
out serious car shortage, and with the