Decline Following 1893
Unfortunately, the progress of the Southern Pacific toward prosperity, which was so considerable between 1885 and 1891, was interrupted by the difficult commercial and industrial years between 1891 and 1897. The effect of world-wide depression upon American railroads is apparent when we observe that in the eastern part of the United States the gross earnings of companies like the New York Central fell off during this period from $21,000 per mile in 1892 to $18,000 per mile in 1897. The Pennsylvania lines west of Pittsburgh earned $44,210,000 in 1891 on a mileage of 3,502 miles. Six years later they hardly equaled this record on a mileage 500 miles greater. Even the protected system of the New York, New Haven and Hartford saw its gross earnings decline from $22,000 per mile in 1891 to $20,000 per mile in 1897.
It was scarcely to be expected that the relatively new system of the Southern Pacific would not suffer with the rest. The figures seem to show, however, that the Huntington lines suffered more than most eastern railroads from the depression in business following the panic of 1893. While it is true that the portion of the roads operated by the Southern Pacific Company which was known as the Atlantic system, comprising the lines east of El Paso, escaped with a decline of earnings from $7,700 per mile to $7,400, or only 43 per cent, the Pacific system, including the Central Pacific and the Southern Pacific Railroad of California, witnessed a decline in its returns from $8,000 per mile in 1891 to $6,400 per mile in 1897, or a loss of from five to six times as much in gross, and a still greater relative decline in net, receipts.
The following table shows the earnings and expenses of the Central Pacific Railroad per mile of road from 1885 to the reorganization of the company in 1898:
Operating Receipts and Expenses of the Central Pacific Railroad of California, 1885-98 per Mile of Road
| Year | Gross Earnings | Operating Expenses | Net Earnings |
| 1885 | $ 8,383.26 | $3,712.93 | $4,670.33 |
| 1886 | 9,135.18 | 4,445.62 | 4,689.56 |
| 1887 | 10,092.27 | 5,394.48 | 4,697.79 |
| 1888 | 11,641.24 | 7,079.38 | 4,561.86 |
| 1889 | 11,416.92 | 7,178.13 | 4,238.79 |
| 1890 | 11,715.97 | 7,259.55 | 4,456.42 |
| 1891 | 12,224.76 | 6,771.95 | 5,452.81 |
| 1892 | 10,745.16 | 6,548.29 | 4,196.87 |
| 1893 | 10,488.89 | 6,267.71 | 4,221.18 |
| 1894 | 9,578.18 | 6,008.06 | 3,570.12 |
| 1895 | 9,534.31 | 5,990.94 | 3,543.37 |
| 1896 | 9,159.68 | 5,706.59 | 3,453.09 |
| 1897 | 4,270.75(*) | 2,715.62(*) | 1,555.13(*) |
| 1898 | 11,595.87 | 6,769.00 | 4,826.87 |
(*) Six months only.
These figures show very clearly that the gross receipts of the Ogden route increased on the average per mile of road from 1885 to 1891, but that they fell off largely and persistently from 1891 to 1897. Indeed, the net earnings per mile each year from 1894 to 1897 inclusive, were less than those for any of the nine preceding years.