The Coolidge examiner., 1937-12-30
S. P. Shows High
Volume For 1887


president of the Southern Pacific
Company, in making public a year
end review today.
"The public demands such i'm
provements as the faster trains,
new scientifically designed equip
ment and the new service methods
that have adapted rail transporta-
ton more excatly to the needs and
desires of shippers and travellers;
yet these standards, and the exist
ence of the railroad industry as
private enterprise are threatened
by the sudden increases in expenses
that came upon the railroads in
1887 without compensating in
creases in revenues"
Reviewing operations of the South
ern Pacific as typical of the rail
road industry, Mr.. Mcdonald said:
"Volume of traffic carried by
Southern Pacific has increased year
by year since 1888, and in 1897 will
be nearly as large as in the peak
year of 1929. The rising trend of
traffic continued, through the first
nine months of 1887, but the de-
cline of the last quarter was great
er than normal owing to slowing
down of business generally.
"In 1935-1936, to take care of the
increasing business and to attract
more, Southern Pacific adopted a
broad program of improved and
extended service for both freight
and passengers. This was continu
ed in 1887, notably marked by the
Inauguration of the new light
weight speed trains, the Daylight
between Los Angeles and San Fran
cisco, the Sunbeam between Dal-
las and Houston and the Forty
Miner and the new City of San
Francisco between San Francisco
and Chicago, as we'll as new eco
nomy trains offering low fares,
low cost meals and many added
comforts. Speed of Southern Pacif-
ic trains further increased 28 per
cent from 1927 to 1887, some frei-
ght trains running rs per cent fast
er now than formerly. In 1887 South
ern Pacific took delivery on 5,23l
freight cars and 40 locomotives of
new scientific design.
Altogether the new and modern
lied freight and passenger cars and
locomotives added to the service
during the year represented an in
vestment by the company of about
s26, 500, 900. Additional large sums
were spent for other facilities and
for improving the line.
However, in spite of the in
creased volume of business, diff
culties arose during the year that
are making it necessary for South
ern Pacific, along with other rail
roads. to defer work and curtail
purchases. Costs of everything the
railroad buys increased; wages in
creased; and taxes increased.
"These increases suddenly face
the railroad after sixteen-year
period of steadily declining reven-
ues per unit of service performed.
AS a result, Southern Pacific's gross
revenues for 1897 will be about
1900, 900 smaller than would
have been the case if the average
revenue per traffic unit were the
same this year as in 1927.
"a rate increase has been pro
posed by the railroads to provide
a relief from the critical financial
situation that threatens their aDll-
tv to maintain their properties and
continue their programs of improve
ment of transportation services. IL
permitted to make fair charge Ior
their services, in line with current
conditions, and given equality OF
regulation with other forms OF
transportation, the railroads OF the
United States will become one OF
the most powerful mediums of re
storing prosperity to the country as
a whole"
iY1in