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HomeMy WebLinkAboutZurich Herald, 1956-05-24, Page 2F.eturn on inveslment Not Adequate Report of C,P.R. Pres'ideni The 1955 financial results of Ike Canadian Pacific Railway stow a ` six percent increase in puss railway earnings but rep- sosent a return on net railway investment of only 2.92 per pmt, "a rate very much below Mt adequate return," says N. R. Crump, president, in the 75th annual report df the Company. While Canada's gross national product increased by 10 per sent to a new high level, the freight service performed by the C.P.R,, measured in ton miles showed an increase of 9 per cent, but did not attain the level of any of the years 1951 tie 1953 inclusive. In pointing out that the ratio of net to gross earnings im- proved from 6.4 per cent to 8.3 per cent, Mr. Crump said: "Gratifying as this improve- ment was, the results for the year represented a return on net railway investment of only 2.92 per cent - a rate very much below an adequate re- turn for your railway enter- prise." The Company's income ac- ed -tint shows that gross earnings Of $448,598,491 were obtained from railway operations, an in- crease of $26 million, or 6 per stent, compared with $422,642,- 423 in 1954. Working expenses rose from $395,609,497 in 1954 to $411,271,773 leaving a net from railway operations of $37,- 226,718 as compared to $27,032,- 226 in 1954. Other income from sources other than railway operation, Mr. Crump reported, amounted to $22.9 million, an increase of $5.1 million, while fixed charges totalled $16.2 million, leaving the Company's net in- come at $44 million. Referring to modernization of railway services, Mr. Crump re- ported that 97 new diesel units were acquired during 1955, comprising road switchers for freight and passenger service and yard switchers for use at terminals. The President of the Cana- dian Pacific said the new scenic - dome stainless steel stream- liner, "The Canadian," which entered transcontinental service in the spr "tig of 1955, introduced to this s untry the finest and most modern equipment in rail passenger -service, and reduced by as much as sixteen hours the time formerly required to tra- vel across Canada. Mr. Crump said the passenger traffic volume expressed in revenue passenger miles in- creased by four per cent. There was a decrease during the first five months, but an impressive SWEET HATS - These dainty confections for spring are just that. Modeled by Louisa von Kories, the chapeaux are fash- laned of candy. They were worn during a spring showing ret a candy store. More conven- tional garments were brought hi to be worn with the sWeet creations. recovery followed the introduc tion of new equipment and im- proved schedules in transcon- tinental services. The improve- ment was not confined to the summer season but extended throughout the balance of the year. The average increase over the last seven months was more than eight per cent. Studies continued during the past year, said Mr. Crump, for the improvement in passenger train services, As a result, seven new "Dayliner" services were commenced, increasing to 2,000 route miles the distance over which these trains were in operation, and to 16 the num- ber of rail diesel cars in servvice. The rail diesel cars, said Mr. Crump, are very popular and very satisfactory economies have resulted from --their use. Twelve additional units have been ordered for delivery in 1956, During 1955, 39 passenger trains were discontinued as be- ing no longer justified by the level of traffic, and a further twelve trains were operated at reduced frequency. A saving in operations at a rate of 865,- 000 train mules per year was thus effected. Construction of 53 miles of branch lines, to service new mining and industrial areas, was completed during the year. These comprised a 40 -mile line between Struthers and. Mani- touwadge in Ontario, a 9 -mile line between Mitford and Jumping Pound in Alberta, and a four -mile line running north form Cheviot in Saskatchewan. Work was under way on a three-mile extension of the line which was built between Have- lock and Nephton, Ontario, in 1954. To improve safety and effi- ciency, 50 miles of automatic block signals were installed during 1955, bringing to 3,039 the total mileage so equipped. Mr. Crump said that a new development of major signifi- cance is now taking place with the adoption of integrated data processing across the system. To gain the benefits of automa- tion in mass handling of -paper work, information on many phases of the operation of the company will be recorded auto- matically at the source and transmitted to a central pro- cessing location in Montreal. By use of one of the most ad- vanced electronic data pro- cessing machine installations, said Mr. Crump, it will be poss- ible- to supply information promptly to all levels of man- agement virtually without man- ual intervention. Freight traffic volume in- creased by 2,054 million rev- enue ton miles or nine per cent. The rise was fairly general, with notable increases occur- ring in lumber, timber and ply- wood, crude petroleum, petrol- eum products, iron and steel, automobiles, trucks and parts, buildin_g sand, gravel and crush- ed stone. Grain and grain prod- ucts were down four per cent and there was a marked de- crease also in agricultural im- plements and farm tractors. Express traffic was up slight- ly from 1954 and there were some increases in rates. Ex- penses increased less than rev- enues, and, as a result, the net earnings of the Express Com - any, carried to railway earn- ings as compensation for the carriage of express traffic, were higher by seven per cent. Maintenance expenses were little changed as the arnoent of o maintenance work undertaken was about the same as for the previous year. Roadway maintenance includ- ed the laying of 418 miles of new and relay rail, the instal- lation of 1,970,000 ties and the application of ballast to 328 miles of track. These items of maintenance were less than the RIO FAIRPHILATELY -- Just shown in Saarbruelnen, Germany, are these new T5 -franc postage stamps. They are two of three to be issued by the Saar Administration for the 1956 Saar Pairs WORLD OIL RESERVES 1955 CRITICAL OIL - The'impor- tance of the Middle East crisis to the Western nations' oil supply is shown by :these charts. In 1945, the Middle East had 32 per cent of the world's reserves. By 1955, it had 60 per cent. Saudi Arabia alone had a 35 -billion -barrel reserve in 1955. During this decade, U.S. reserves dwindled from 34 per cent to 19 per cent. But Soviet Russia's reserves were more than halved, drop- ping from 14, per cent in 1945 to 6. per cent in 1955. 1945 offiiitt////4�1/// MIDDLE .,/ ;: EAST 32% �r U.S.S.R 14% ALL OTHERS 6% UNITED STATES 34%. 'Piy//w► SOUTH/// /AMERICA k///////////11/ A averaged for the previous five years. Equipment maintenance, he said, included the general re- pair of 375 steam locomotives, periodic repair of 293 diesel- electric units, the heavy repair of 35,806 freight cars, and the general repair of 752 passenger cars. Transportation expenses, said Mr. Crump, notwithstanding the increase of nine per cent in freight traffic volume, rose by only one per cent and the ratio Of transportation expenses to gross earnings declined to 38.8 per cent from 40.9 in 1954. "Notable improvements," said Mr. Crump, "were effected in service and operating efficiency. Of • the total transportation work done during the year, • the proportion performed by diesel power was 45 per cent in freight service, 60 per cent in passenger service and 65 per cent in yard service." While the volume of total transportation service increased by 3.8 billion gross ton• miles, train fuel expense decreased by almost $600,000. Freight train speed and gross ton miles per freight train hour reached new high levels, continuing the trend of the past five years. Construction of the enw pas- senger cargo liner "Empress of Britain," which will enter regu- lar North Atlantic service in the spring of 1956 as the flag- ship of the Canadian Pacific Steamships' fleet, has been completed. Construction of a second new liner, to be named "Empress of England," proceed- ed during the year. This vessel will join the North Atlantic fleet in the spring of 1957. In anticipation of the comple-. tion of the "Empress of Bri- tain," the "Empress of Austra- lia" was withdrawn from serv- ice at the end of the year and sold in February. The new 5,554 -ton motorship "Princess of Vancouver" enter- ed the British Columbia Coast- al services in June. The new vessel has accommodation for 800 passengers and is designed to carry 28 railway freight cars or 115 automobiles and trucks. The Canadian Pacific Airlines had a net profit of $275,000. In the previous year there had been a net profit of $969,000` which included $593,000 from the sale of aircraft. There was an increase of 45 per cent 'in revenues from domestic opera- tions, principally as a result of partcipation in the cargo char- ter airlift which commenced in February, to supply and service the construction of northern radar installations. An important extension of C.P.A.L. international air routes was effected with the inaugura- tion in June of the Vancouver- Amsterdam Trans -Arctic service, This extension, which has brought the west coast of Can- ada within 19 hours' flying time of Europe, provides a direct connection with other interna- tional routes out of Vancouver. Another major development was the addition of. the Toronto - Mexico City service in Novem- ber. This route, which connects eastern Canada with C.P.A.L.'s international service between Vancouver and South America, was obtained from Trans -Can- ada Air Lines in exchange for .. certain routes in Quebec which were distant from maintenance facilities at Vancouver. On order at the year end were eight DC -6B aircraft for delivery commencing in 1956, and three Bristol. Britannia tur- bo prop aircraft for delivery in 1957. Ocean and coastal steamship operations resulted in a profit of $330,000 compared with a loss of $2 million in the pre- vious year. A firmer tendency in ocean rates on grain and SALLY'S SALLIES C,,...,.,,,.,... W. la. uiu.,..r 4.! "Are you, sir, a pub isher, an author, an artist, a columnist, or -another press agent? flour, increased cargo carrying both eastbound and westbound, and reduced expenses were the factors in the improved show- ings of ocean steamships. Revenues from coastal opera- tions decreased, principally as a result of lower freight earn- ings, but expenses were reduced in greater proportion. Net earnings of hotels were virtually unchanged. Increased room rates were put into effect at some points in order to off- set payroll costs. Net earnings from communi- cation services increased by $700,000, Mr. Crump said. Fixed charges, at $16.2 milli- on were higher by $1.2 million. There were net decreases in the charges on• both equipment trust and collateral trust obli- gations. Net income after fixed charg- es, at $44 million, was up $14.2 million. After provision for dividends on Preference Stock, earnings available for divid- ends on Ordinary Stock and for reinvestment amounted to $40.9 million: _This was equal to $2.- 94 per share on 13.878,173 shares of Ordinary Stock outstanding at the end of the year, as corn- • pared with $1.94 on 13,8I2,014 shares at the . end of 1954. The net addition to Land Sur- plus Account • amounted to $9.4 million after income taxes of $4:0 million. Gross receipts from petroleum rents, royalties and reservation fees, at $9.0 million, were up $553,000. Reservation fees pro- vided most of the increase. Al- though royalties were received on 14.9 million barrels of crude oil from 718 welts, compared with 13.6 million barrels from 697 wells in 1954, income from this source was little -higher in consequence of reductions which occurred in well -head prices for crude oil, The balance sheet shows total assets amounted to $2,l°4 mil- lion, an increase of $80 million. The increase in property invest- ment after retirements was $67 million. The 1955 Canadian Facile Railway dollar, the report shows, was earneri on the fol- lowing basis: Twelve cents from passeng- ers; 21 cents from products of mines and forests; 17 cents from products a, farms; 44 cents from manufacturers and miscellane- ous goods- six cents from other or unclassified traffic. The dollar was spent for: ' Payrolls, 53 cents; materials and supplies, 24 cents; deprecia- tion and retirements, seven cents; taxes and other expenses, seven cents; fixed charges. four cents; dividends, improvements, etc., five cents. J. A n flERKEY f Public Relations Officer, P.R.-Montreal, Que. D ive Mil Care .,43 TAuisj37)8LE ta A dtiews. • ave you some leftover bits ' of ham in your .kitchen? Try this meal -hi -one dish, using meaty ripe olives, noodles, cheese and tomatoes as well as special seasonings. Ham and Noodles 1 cup ripe olives ' cup diced onion % cup diced green sweet per 2 tablespoons salad oil 8 ounces noodles 1% cups canned tomatoes 1 cup water 1/4 cup liquid from olives 1 cup diced cooked halm 1 teaspoon salt 1/ teaspoon pepper i teaspoon paprika lfi pound diced Canadian cheese Cut olives from pits into large pieces. Cook onion and green pepper slowly in oil until trans- parent but not browned. Add noodles, tomatoes, water, olives, olive liquid, ham, salt, pepper and paprika. Simmer 10 min- utes. Stir hi cheese. Turn into 2 -quart baking dish. Bake at 350°F. 40-45 minutes. Serves 6. * Sausage. Corn Dinner 1 pound ptork sausage links 3 tablespdens sausage drip- pings • 3 tablespoons flour .1% cups milk 1 No. 2 can whole kernel corn, drained R tablespoons ehopped green pepper 1 cup cracker crumbs 2 tablespoons drippings (for crumbs) Fry sausage until lightly browned (8-10 minutes). Re- move from skillet, pouring off all but 3 tablespoons fat. Make sauce in same pan by adding flour to fat, then stirring in milk. Cook and stir until. thick- ened. Add corn and green pep- per. Put half of crumbs in bot- tom of casserole; add some creamed mixture, then all but 6 sausages; add remaining creamed mixture. Top with re- maining crumbs that have been mixed with 2 tablespoons sausage drippings. Add, last, the e sausages to top. Bake at 350°F for 25-30 minutes. Makes 4-5 servings. . * •; . * *. CORNED BEEF HASH With Mustard Sauce 2% cups cooked cubed potatoes Pep" rb HIDDEN HUNGER Frankie Crosetti was one Of the shrewdest hidden - ball tricksters ever to play short- stop in the big time. Perhaps his most memorable stunt' occurred in the seventh inning of a cru- cial ball game. The batter bounced one off the rightfield fence in the stadium and made second base on a long, beautiful slide. "Very nice," murmured Cro- setti, as the runner began brushing himself off. Then, as an afterthought, "Boy, am I go- ing to have a big dinner to- night I" "Whatcha gonna eat?" asked the curious runner. "Steak with lots of fried on- ions." "Fried onions?" "Sure, don't you like them?" "No," retorted the runner. "I like 'em boiled. The big ones, big as baseballs." The players, engrossed, , had wandered away from the bag and now Crosetti was between the runner and the sack. "Like this?" asked Crosetti, turning his glove up and show- ing the ball. A thin film or paste wax will provide -stairway bannisters with protection against the marks and stains of hand traf- fic and k e e`p it polished for ' weeks. 34 cup finely cubed celery and chopped celery leaves 34 cup chopped onion 134 cups (12 -ounce can) cubed corned beef 3s cup diluted evaporated milk Si cup mayonnaise or salad dressing 2 teaspoons prepared mustard In a greased, shallow casserole or baking pan arrange potatoes (these are best cooked in their while hot), celery, onion, and jackets, then skinned and cubed corned beef to a depth of not more than 2 inches. Do not stir, but distribute evenly when plac- ing in casserole. Store in re- frigerator until an hour before serving. Pour milk slowly over top of hash and bake at 350' about 30 - 45 minutes. (If you need to keep this dish warm, reduce temperature to 225° F.) For sauce to pass with this cas- into mayonnaise or salad dress- serole, blend prepared mustard ing. Serves 6. ,. 1. ,� MACARONI WITH BACON 8 ounces6elbow macaroni 3 tablespoons butter 3 tablespoons f).our-.-• 2 cups milk 1 cup shredded -1 anadian cheese n 1 tablespoon prepared mustard 1% teaspoons salt % teaspoon pepper 1,4, teaspoon thyme 3 tomatoes, sliced 6 slices Canadian bacon Cook macaroni in boiling salt- ed water until tender. Drain and rinse. Melt butter in saucepan, blend in flour. Add milk gradually and cook over law heat, stirring, un- til smooth and thickened. Add cheese, and stir until smooth; add seasonings. Combine sauce with macaroni and pour mixture into buttered 1% quart casser- ole. Top with slices Of tomato and. bacon. Bake at 350° F., 30- 40 minutes, or until bacon is• crisp and browned. Serves 6. "CAN U READ ME 4" - Polio radio operators Thomas F. Korn, left, and Orville Wingate inspeci their 30 - foot - high, 700-wati beer can transmission antenna. The 77cans, welded. together, tower right out of the picture, Base insulator is a quart ginger ale bottle, which rests in a of. fee can. Guy wires are fashion• ed of plastic clothesline. • UNa1UNKABLE DONUTS - Equipped with new Kiddie do -nut - shaped flotation gear, this Sikorsky S-55 helicopter" Inakes si simulated emergency landing on water, The rubberized nylon floats -- 58 cubic inches each in front and 66 cubic inches in rear - weigh 170 pounds. Pilot can inflate them mechanically in a few seconds,