St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1884-11-23
a brief speech from Governor Routt the con-
vention adjourned.
AN OFF YEAR FOR RAILROADS.
An Officer of the Pennsylvania Com
pany Expresses Himself on
Railroad paupaOo:Or

Especial Telegram TO the iIOae.l

PITTsBURs, Nov. 22.-''This has been al
of year for railroads, ''said prominent officer
OF the Pennsylvania company while waiting
for train al the Union depot this afternoon.
would you have any objection to explain
ing howl" was asked.
Il am not in the habit of talking for pub
LEGATION, but II you viii take seat
and report me correctly l viii give
YOU few facts to suOstantiate
my statement that this is bad year for rail-
roads 1t has not been profitable year for
US fro q the fact that there has been a large
falling of in western shipments. There
have been few railroads built in the west this
year, and in consequence our shipments
have been cut down to a wonderful extent.
The western iron mills and other manufac-
turing establishments have been closed down
Tor long periods and the shipment OF coal
aud coke has been lessened thereby. Another
Ercai trouble mas 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. Tue trouble in the east
bound freight poo is of such a recent date
that need moi enter into particulars further
than to say that nine-tenths of the freightesr-
ried over our line from the west during the past
four or five months has Yielded no profit.
The special rebates were not insugurated by
our company, Tut just as soon as We ascer-
tanned that they were given by competing
lines II has been our custom TO ask Commits
sioDer Fink 10 make a corresponding reduc-
ton. The shipments Of coal aud coke from
the Pittshurg transfer for the past
four months have not averaged
more than One-half as much
as for the corresponding period Of last year.
The revenues of the Panhandle system,
which embraces the Pittsburg, Chicago s.
St Louis railroad and leased lines aad the
Chicago, St. Louis & Pittsburg railroad will
br at least thrre-quarters Of a million less
than for 1888 There was very little profit
last year in the operation of these lines and
ii is safe to say there will be none this
year"
Have you made any reduction in the
number Of em ployesi'
There has been a slight reduction In the
force OF track and shop men, but We are
running about the same number Of train
men us last year. No increase has been made,
assure you. The clerical force has not been
materially iessened. This cannot be very
well done. II takes about the same number
OF men in the latter department whether
business is good or bad.r
''How about the rumor of reduction in
the wages of employesl'
This has been considered, am sorry to
say, but a move of this kind will be made only
as last resort. Many companies will
try every other method OF retrenchment
first, but if ii comes 10 general reduction oil
expenses suppose the wages Of employees
will have 70 come down. They will not be
reduced over ten per cent. The experiences
OF 1877 are not pleasant recOllections, and
any move made toward q reduction will 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-
bilities."
'Are the causes the same now as those
leading to the depression Of 1871"
Not exactly. The trouble in 1877 was
that there was but little business to do. All
the leading industries of the country were
suffering relapse. Now there is more
trade, more competition aud more cutting
in rates.
''What will be the effect of the new Balti-
more 81 Ohio line to Chicago via the Pitts
burg Il Western and its eonnectionsp'
'More competition, OF course, but l don't
think it will lead to any war of rates. If
competition becomes improbable trouble Of
a more serious nature can be avoided in
many ways. have no fears"