St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1884-11-24
brief speech from Governor Routt the con-
vention sdjourned.
AN OFF YEAR FOR RAILROADS.
An Officer of the Pennsylvania Com
pany Expresses Himself on
Railroad Depression.
[specisl TeIeeraln o DE Globe.


Of the Pennsylvania company while waiting
for train at the Union depot this afternoon.
''Would you have any objection to explain
ing howl' was asked.
II am not in the habit Of talking for pub
lieadou, but II you will take seat
and report me correctly l viii give
you few facts 70 suostan,iate
my statement that this is bad wear for rail-
roads II has nc, been q profitable year for
rs fro q the fact that there has been large
falling OF in western shipments. There
have been Few railroads built in the west this
year, and in consequence our shipments
have been ut down to wonderful extent.
The western iron mills and other manufac-
turing establishments have been closed down
Tor long periods and the shipment OF coal
and coke has been lessened thereby. Another
great trouble has been the cutting of rates.
From the east 10 the west the cut has been on
passenger rates, aud from the west to the
east on freight. The trouble in the east
bound freight pool is OF such 8 recent date
that need not enter into particulars further
than TO say that nine-tenths OF the freightear-
ried over our line from the west during the past
four or five months has yielded no profit
The special rebates were not inaugurated by
our company, but just as soon as we ascer-
tanned that they were given by competing
lines II has been our custom to ask Commits
sioner Fink 20 make a corresponding reduc-
ton. The shipments OF coal aud coke from
the Pittsburg transfer for the past
four months have not averaged
flaurt t,lf
as for the correspond period Of last year.
The revenues of the Panhandle system,
which embraces the Pittsburg, Chicago u
St Louis railroad aud leased lines aad the
Chicago, ST. Louis Il Pitlshurg railroad will
be at least three-quarters of a million less
than for 1888. There Was very little profit
last year in the operation OF these lines and
it is safe 10 say there will be none this
year"
Have yoa made any reduction in the
number OF employesi"
There has been slight reduction in the
force Of track and shop men, but we are
running about the same number Of train
men as last year. No increase has been made,
assure you. The clerical force has not been
materially lessened. This cannot be very
well done. II takes about the same number
OF men in the latter department whether
business is good or bad"
'How about the rumor OF reduction in
the wages of enployesi"
This has been considered, am sorry to
say, but-a move Of this kind viii be made only
as last resort Many companies will
try every other method of retrenchment
first, but If it comes 10 4 general reduction OF
expenses | suppose the wages Of employees
viii have 10 come down. They will not be
reduced over ten per cent. The experiences
Of 1877 are not pleasant reeollectious, and
any move made toward a reduction win be
made after due consideration. The employees
are aware OF the small amount Of business
the roads are doing, and guess with them
more than the company this rumOr of a re-
ductiOn has had its origin. II trade does
not improve, however, it is among the proba-
bilitics."
''Are the causes the same now as those
leading to the depression OF 1s77l"
''Not exactly. The trouble in 1877 was
that there was but little business to do. AL
the leading industries of the country were
suffering a relapse. Now there is more
trade, more competition and more cutting
in rates.''
''What will be the effect Of the new Balti.
more Il Ohio line to Chicago via the Pitts
burg & Western and its eonnectionsF'
''More competition, of course, but I don't
think il will lead 10 any war Of rates. II
competition becomes improbable trouble OF
a more serious nature can be avoided in
many ways. have no fears"