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The President identified many specific elements of our
"chaotic patchwork of inconsistent and often obsolete legislation and
regulation," which he said "does not fully reflect either the dramatic
changes in technology of the past half century or the parallel changes in the
structure of competition." One of his important recommendations was for
legislation which would require reasonable and adequate user charges for the
commercial use of publicly-financed transportation facilities. The enactment of
legislation of this kind - a fair treatment measure so long overdue - would be
of great assistance to our company and to the railroad industry.
In another important area, the Interstate Commerce Commission again has
recommended that Congress enact legislation which would provide the railroads
with an economic incentive to procure and maintain their fair share of a
national freight car supply. The United States Senate will soon consider this
legislation which has been introduced as Senate Bill 1063. A letter to your
Senator urging support of this bill would be helpful in our efforts to eliminate
recurring freight car shortages.
Leadership of two GN presidents recalled
Finally, the year 1962 will have its remembrance of sadness in the loss to Great
Northern of two of the seven presidents who have served this company since its
beginning. Ralph Budd, the railway's chief executive officer from 1919 to 1931,
passed away on February 1 at the age of 82. His presidency embraced a period of
tremendous development on Great Northern, highlighted by the construction of the
Cascade Tunnel and the Bieber Line to California.
Frank J. Gavin, president from 1939 to 1951 and then chairman of the board until
1959, died April 7 in his 81st year. He guided Great Northern's destiny through
the demanding years of World War II and the accelerated period of rebuilding and
progress which followed. Both Mr. Gavin and Mr. Budd will long be remembered for
their unique careers as railroad men and for the outstanding leadership which
they gave Great Northern.
The following record of Great Northern's performance in 1962 is presented with
my appreciation for your own contributions this past year, and with warm wishes
for a bright future for each Great Northern family.
HIGHLIGHTS OF OUR 1962 OPERATION
Railway Operating Revenues
1962...$238,940,423
1961...$232,951,918
Railway Operating Expenses
1962...$187,808,766
1961...$185,066,905
Net Income
1962...$25,018,986
1961...$18,632,420
Wages and Salaries
1962...$118,342,876
1961...$117,313,400
Taxes
1962...$25,680,369
1961...$27,696,616
Purchases
1962...$37,436,375
1961...$47,711,000
Fixed Charges
1962...$7,985,820
1961...$8,152,617
Dividends to Stockholders
1962...$18,220,775
1961...$19,236,342
Rate of Return on Property Investment
1962...3.4%
1961...2.4%
Average Number of Employes
1962...18,128
1961...18,619
Investment in Property, Equipment, Etc. Per Employe
1962...$48,557
1961...$47,073
Number of Stockholders
1962...44,351
1961...41,794
Average Miles of Railway Operated
1962...8,270
1961...8,277
 
 
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