New-York tribune., 1874-12-15
ERIE FINANCES.
STRUCTURES ON PRESIDENT JEWEITS
REPORT.

STANDARD OF MAIETEEANCE-TIE REPORT iNDi-
GATES DEFICIENCY IN THE OPERATIONS of
THE YEAR-PURCHAsEs OF STEEL RAILS Nor IN
KEEPING WITH THE SUPPLY BHIs-NorhiN" ~
SHOW FOR THE VAST SUNS BORROWED w LAAH
YEARS.
To tho Editor of The Tribune
SIR: The report of Mr.. Jewett, fresfdeh'
OF the Erie Railway Company, presented W 'n0
directors the 10th inst appears to be Simply Gun
tnuaon of the ecolored documents issued by MS
MI Watson. In the first place ne gives 'e
amount OF earnings for the year az slSo'o'0'o w.
crease OF 4l3707 rs from those OF the previous 'o
and then he adopts Mr.. Watson's COOKED aooo""''
for the year 1873 basis for comparison Oh
by which he sho for the year 1874 with ns arse
decrease in the revenue. the general or executive OK
penses were increased $165 400 TO- This increase may
possibly be accounted for by the alleged large pay
to Mr. Jewet his services which Is now thc sugco'
OF investigation by tho Attorney General ho 'non
shows n decrease OF station and tram eAPcnSo' vi
sss7I2 a. and decrease OF repairs OF road ana rone
stock as compared with the "cOoked accounts Vi
s536Ol A. total decrease in the expenses 'or '"'
year of S69Oi although, II takes the actuai tx
penses year 1879 he will find the decrease Id Tx
pense account n saving of s1,sOS,OOi Go.
And here comes q question. Mr.. Jewett gives no
details OF the amount OF tonnage or the es run ny
trains; but from the small reduction In the Tram eA
penscs 1t is reasonable suppose that the volume OF
road and machinery would consequently require as
much repairing Has there, then, been more. colpeh-
satory reparaton" accounting, or have tne roau anu
machinery been "skinned" to that amount III 'he
latter and the road and machinery can be "skihheo
nearly s. in one year. why not skim 1t moref
Why make any repairs whateveri We are lnclheu W
think that the repairs must have suffered 10 very
large amount for Capt Tyler speaks in his report or
engines and cars on the record WIN ho'hne
to represent them on the road, as they nave pech
destroyed and not replaced and he adds that some
parts of the road poor condition. All this Will
leave groundwork for some future Watson 10 20 into
the extra reparaton business larger scale than
was tried to be palmed off the stockholders by the
late President Of this unfortunate Company.
Mr. Jewct says that on taxing charge Of the road on
July H. he found the service TO some extent disorgdh
lzed and that the depressed condition OF lis business
rendered the introduction Of reforms and economy more
difficult than 1t would have been under ordinary circun
stances but that they are being introduced and arc
being felt This rather hard on the late President
Watson, for what have become OF all the reforms
which he introducing during the two years OF DIS
administration Reform is good word and takes well
wi h some and tits possible it may be used Dy some
future President OF a railroad corporation.
Comparing Mr.. Jewetps figures With those OF former
years. as given in Poor's Manual undoubted author
ity we lind the maintenance per single mile OF rail-
way have COST In 1867 2592; In 1863 s2ss; IN 1867
$780, in 1870 $s9s 1s7 s47O; in 1872 $685. In lS73
sl3l average OF $33 per mile for the seven years
According to Mr. Jewetrs report the expenditure has
been only s. decrease OF $j1 per mile In this cal
culaon we give them the benefit OF the reduced figures
in lr Watson's report of 1873. which Mr.. Dunan, sup
ported by the late general accountant and the English
accountants, says are incorrect.
In the matter OF expenditure FOR the maintenance OF
rolling stock and ears, ind the same evidence or
"sknumg." The expenditure per train mile for the
year 403 1863, 413 in 1869, 40; In 1870
279 in ISL 222 in 1872, 1856 in 1873, lS or an aver
age OF 800 per train mile for the seven years Assuming
that the train mileage more in 1874 than in 1873,
Mr. Jewetts figures give only the OF .1S0 eX-
pcnditure per train mile, and in this calculation we
give benefit OF the reduced figures OF 1873 also
might carry the comparison further by references 10
the cost and expenditures of The Central ana Pennsyl
Railroads, but think the above sufficient to show
that Mr. Jewett is starving his road and equipments In
his effort 10 show reduced expenses.
No railroad presidents report would be complete
without reference the subject OF steel rails. Mr.
Jewet that since his advent to Office he has pur
chased GOOO OF steel rails and iron only
far as is necessary exhaust the stock hand II is
unfortunate that his statement OF purchases does not
correspond with the supply bills SIX thousand tons Of
steel rails would about s75OcOo and he states
that his entire purchase OF materials has been for the
months Of July, August September, and OctO
Der, but the Of $j2G,s(G 25, yielding the
average OF $l3l 7Ol Sc monthly. The cost OF
fuel alone by their accounts for past years IL
from s85 900 to $4,000 and of oil and waste $4,000,
monthly, and they are surely no less now
which would leave the sum Of S260O0 for the pur-
chases of steel ra. iron rails. general road supplies,
engine ana materials, and other necessary articles
BY their reports OF 1871 find that the sum PAID Tor
iron used III repairs track amounted to sO5621O; Ill
1872 s1CS74 O5 in 1873 TO :42S53 70; or an aver
age Ss5 100000 monthly. 1t certainly requires
as much If more, to make the renewals now as 1t
"A tI. Iyyas inc
rates these renewals depend upon the service per-
formed The articles above enumerated amount Oh the
Eric monthly TO of S2OOGOO and are so essen
ta that the road could not be IL the supply was cut
OF or materially decreased The fact Is apparent tha'
in his effort show marked economics he has accepted
an incomplete statement of some OveramDltl0us ana
correspondingy ignorant subordinate. No sensible
person will for moment suspect that 10000 President
woud parade such statement before the public unless
he thought he night about IT. He has Simply peeh
imposed upon, and should break" the officer wLo
did it.
Mr.. Jewett's prophecies must be taken and welShed
by the realization OF past prophecies by Erie maaHers
none of which have, far knowledge goes ever
been fulfilled He says: "Suppose we are limited III
earnings to s OCOand the expenses are
below G2 per cent-a Of <s.3jo0OO would Dc
the result" His query lacks honest candor III 'ne rs.
place lie shows that IL has cost, under the shhhlhH
process a per cent work the road which Is lOi per
cent above Ms estimate. True, he states hat III ono
month reduced the percentage to Gl 10 per cent Dut
ne fails 20 show wherein the reduction was nade'
presume it takes as much labor fuel and train service
to do the amount Of work as In previous months
by his admission to no reduction mas Deen
made In the rates OF wages OF the employees; nave
seen no announce OF any decrease III the oncal
CORPS fact have TO believe that there mas
been an increase in the latter. Where theh mas nc
made the reductiona What he says regarding the
decreased purchases Of material points significantly 10
the service effected. IL is known that ihe Dhih oi
materials goes TO maintain the Departments OF hoad