OCR Text |
Show Santa Fe Revenues Report Increases Santa Fe Railway's 1960 reve: nues were the second largest in the history of the company and represented a business volume, that' was not unfavorable in comparison with the general economic eco-nomic situation. President E. S. Marsh reported in the railroad's annual report just mailed to its 103,194 stockholders. Total operating revenues were $614,017,338, or 3.1 per cent less than the record established in 1959. Despite the favorable effects of record, breaking agricultural production, freight carloads fell 3.0 per cent below 1959, producing produc-ing revenues of $514,079,218. Passenger revenues showed an increase of 1.3 per cent over the previous year, reflecting a continued con-tinued patronage of transcontinental transconti-nental trains. Mail revenues rose 5.8 per cent over 1959, assisted by an increase of 13.0 per cent in rates effective Sept. 1. 1960, while express 'revenues declined 16.9 per cent. Net income for the year was $51,596,697, a drop of 21.8 per cent from 1959 earnings of $65,-785 $65,-785 901. The 1960 net was equivalent equiv-alent to $1.87 per common share compared to $2.45 in 1959. Mr. Marsh mentioned several factors contributing to the decline de-cline in net income. Due to certain cer-tain changes in the characteristic of freight handled, the freight revenues declined while the physical traffic volume measured in 'revenue ton miles actually showed a slight increase. This situation together with increased wage rates that became effective during the ' year acted ' against efforts to trim transportation costs in the same proportion as the drop in revenues. Other factors fac-tors included approximately $1.9 million of additional payroll taxes, increased cost of material and supplies, about $1.5 million reduction in tax credits related to prior year operations, arid a net reduction of $1.1 million in 1960 compared to 1959 in tax credits related to the five-year amortization of certain facilities arid the use of optional methods of depreciation of new property. Dividends received from the wholly' owned affiliated companies compa-nies amounted to $8 million, the same as in 1959. Net income after taxes of the wholly owned affiliates amounted to $8.0 17,-888, 17,-888, a decline from the $8,02,074 reported in 1959. Mr: Marsh pointed to depressed oil prices and curtailment of production as contributing to the decline. " He reported the total of all taxes in 1960 was $76.8 million, equivalent to $3.16 per share of common stock. There was a decrease de-crease in federal ' income" taxes of $9.9 million, attributable to a lower taxable income, but other taxes increased $2.3 million over 1959 levels, continuing last year's trend. |