The New York herald., 1873-11-08
TIE PENNSYLVANIA RAILROAD.
Vice President shaw In Defence Of the
Company-Tom Scott's Alliances Not
Entangling-The Financial Condition
OF the Road Never Better.

of the Road Never Better.
PITrsBURG, Pa, Nov. I, 1878.
This afternoon, in conversation regarding the
unIavorable rumors about the Pennsylvania Rail-
road and its management, William Shaw, very
wealthy gentleman, a heavy stockholder OF the
road and Vice President Of the Pennsylvania Com
pany SAID 'they were In a position where no
stories could anect them. There is no road in the
United States that has so firm footing know.
in these times OF exposure, when it has been dis
covered that there has been intermngng often
Of private interests with public moneys there has
been general feeling Of distrust engcndered
against all great corporations. Most absurd stories
have been told about us. One OF the most absurd
was that our company last week was so hard up
that McCulloch did not know what to do, ana
was closeted with me two nights in succession
until hafpast two in the morning trying to devise
some means OF relief, when the fact OF the matter
really was we were both In Philadelphia at the
time.o
as the PENNSYLVANIA road affected by the
troubles OF the Texas Pacific ~ asked.
mo, 1t is not affected by any complications OF
outside roads,"
not affect the Pennsylvania Railroad in the easts'
''There is not the slightest probability OF Mr..
afect the road. All OF Mr.. scott's outside specu.
latis are separate from the tran nsactons OF the
railroad, SO il they all should ia it could not affect
..Do you refer to the Pennsylva lila Railroad or
the Pennsylvania Company
.'rhese are one ana the same s" far as their In
teresrs are concerned. The con any is for the
operation OF the leased lines. 1t
ANOTHER BRAIN TO OUTSIDE FEEDERS,
but they all have the same TEL nnaton. The
Pennsylvania road owns US and that makes the in
terests IDENTICAL"
"ls 1T not strange that there should be SO many
rumors about your companyYn
1--WE have never taken the trouble to contradict
them. We pay our debts and mind our own bus:-
ness, having all we can dO.n
"1ou are not dischargtng any more hands ~
mo, We need all we nave TO carry on our btlSl-
ness. We have cut down wages In conformity with
the times, at top and bottom. II the truth were
really known about us 1t would be clearly shown
First, that the Pennsylvania Railroad or Company
IL in way involved in outside schemes, and the
projects cannot affect them, nor their relations
with Mr. Scott, further than 1t may impair his
funess directors second. that the assets OF
the road and the company are intact and In their
have been so enormous as TO surpass belief So
large are they that none OF the New FORK people
would be able TO believe them were the statements
before them"
HOW THE RuMoRs ORIGINATED.
Mr.. Shaw went further and explained how these
street rumors had originated Ten years ago
roads, IN buying their supplies, never paid cash.
They paid in bonds and long scrip. During the
war times became better, and after the war from
time paper being given, roads began to pay next
month for what they had received the month pre-
the war and have spoiled good people who had been
furnishing us supplies. When money became close
we merely went back to asking time, when stories
were Immediately started upon the street that we
were the verge OF bankruptcy. The result is,
we have been paying Off our debts until to-day.
defy any man to snow that we have outstanding
claims amounting to over 100000. That Is our po-
stion. All the roads that cannot pay up their
claims must OF course, 90 by the board. We we're
never in q firmer condition than we are to-day on
account OF our paid up Claims"