March-April 1960 page 7

1959
ANNUAL REPORT
Revenue was up, net income was down

[column 1]
THE Piedmont and Northern's annual
report for 1959, distrivuted to stock-
holders early in April, revealed that
although last year was a fairly good one
it was by no means a record year.
The company handled 104,265 car loads
of freight last year as compared with
94,009 in 1958, a 10.9 per cent increase
in volume. Operating revenues were cor-
respondingly higher as a result of this
increased volume of buisness. However,
due to higher costs of doing business, net
income was lower than the previous year
by 4.3 per cent. Net income in 1959 was
$881,658 as compared with $922,487 in
1958.
In his annual letter to the stockholders
W. I. Rankin, president, explained that
a number of factors were responsible for
the decline in net income. These fators
included higher wages and salaries, in-

[column 2]
creased cost of materials and supplies,
increased rental charges on freight cars
and the larger number of cars handled,
increased cost of railroad reirement and
unemployment compensation programs,
cost of the new supplemental retirement
plan, and expansion of personnel in some
departments.

Industrial development
Mr. Rankin also pointed out to the
stockholders that "Our industrial devel-
opment program was continued in full
force during the year and several im-
portant plant and warehouse facilities
were located on sites accessible to our
line. The company;s fourth planned in-
dustrial district was begun on property
near Spartanburg, S. C., previously ac-
quired for that purpose. The first ware-
house containing more than 100,000

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