Salt Lake Telegram | 1925-05-01 | Page 3 | S. P. Company 1924 Earnings Show Decrease

SI 5 P. P 1 COMPANY 1 U 4 EARNI EARNINGS JG HOW DEGRE DECREASE S SA SAN FRANCISCO May fay 1 I.-Al- I. Al Although though the freight traffic freight traffic of the Southern Pacific company In 1924 increased slightly over the volume in 1923 which was close to the highest st In the com company's anys any's history the net railway operation income o othe of the company was or 6 C G.- G. less than in 1923 This 1 is shown In the annual report of th the company to Its stockholders as given by Julius chairman of ot the executive committee commit commit- tee and made public today by PresIdent PresIdent President Pres Pres- Ident William Sproule This net Income was a 0 return o ot of 3 99 per cent on the book booIe value o of road and equipment The decrease Is due to various reasons whIch include decreases In freight rates increased wages Increased cost o of fuel and other supplies a reduction reduction tion In the proportion of high class clas freight traffic and decreased passenger passenger passenger pas pas- traffic The average rate per ton mile on traffic carried by the company was wa 1 40 cents as compared with 1 4 cents in 1923 1 Increased average wage rates In Increased increased increased in- in creased the company's expenses b by as compared with 1923 Expenditures for fuel Increased 2 2 due to Increased prices a as compared with wit 1923 while increases Increase In prices of other materials cost the company Except for for or these Increases and the Increased charges for tor depreciation tion and retirement of equipment due to equipment additions at market market mar mar- ket prices far higher than those o of former years the net railway operating operating operating oper oper- income would have shown an increase over 1923 according to Mr despite a decrease of or per cent in railway railway rail rall- way vay operating revenues the tho effect of which was overcome by a reduction re reduction reduction re- re in expenses for maintenance ance by greater efficiency in the use of fuel and by better freight train loading The company paid out In dividends In 1924 virtually the same amount paid out In taxes which amounted to