Delaware gazette and state journal. (Wilmington, Del.) 1883-1902, 1893-12-21
ECONOMY TO Be THE RULE.
The Pennsylvania Railroads Policy
for the Future.


To Enforce the Most Rigid Economy, and
Reduce Expenditures to the Lowest
Point Consistent with the Safe admins
istratiou of the Service.
A meeting of the general superintendent
and heads Of departments Of the Pennsyl-
vania railroad was held at the company's
office, Philadelphia, Thursday, to discuss
the best means of carrying into effect the
policy of economy ordered at Wednesdays
meeting of the directors, when resolu-
ton was adopted requesting President
Roberts, in view Of the serious effect upon
the company's revenue of the prevailing
business depression, ITO instruct the heads
of departments to enforce the most rigid
| economy, and to this end to reduce all eS-
penditures 10 the lowest point consistent
with the safe administration Of the SER
yice.n
Ii is understood that no particular line
! of retrenehment was agreed upon but that
! all heads OF departments were Impressed
| with the necessity Of cutting down expenses
in evsay direction and to the lowest pos
sible notch. The pruning knife will be APP
| piled at once.
President Roberts, when seen after the
meeting and asked regarding the policy of
| the company and the circular issued order
| ing economy, said:
THE present condition OF affairs
| throughout the country is so serious that
| the board of directors of this company has
| found II necessary to order a reduction of
expenses wherever possible, and this cir
cular is q notice to our shareholders that
we are now taking the necessary steps,
In other words the circular emphasizes
the policy which the company has pur-
sued for some time, ana is the first general
notice to the heads of departments which
has been issued i'll this form"
| IN GOOD FINANCIAL CONDITION.
Continuing, Mr.. Roberts said; The
present panic is one of the most severe IN
the history of the country. Its effects are
widespread. In 1857, and again in 1873
this company found it absolutely neces
sary to reduce expenses ON all sides. The
present depression has effected all indus
tries, and we mnst again economize wher
ever possible. For some months, as you
know, we have been reducing our forces
but we want our shareholders to under
stand that we are fully alive TO the import
ance OF further economy, and we now tel
them so, in unmistakable language. Oul
company is in an easy financial position
and we intend to keep it so. 1t is not al
ways an easy matter to regulate the bust
ness Of great corporation the credit o
which is good. The management il
tempted to buy properties and to maxi
various expenditures which, while they
are consistent with good business fore
sight, involve heavy outlays. This com
pany, in common with others. has pursuet
Il business.like policy. and that ha
necessitated the expenditure of large sam
OF money for various purposes.
DO you think" Mr.. Roberts was asked
that the reduction in expenses nov
ordered will be all that is necessary"
II believe" he answered, that whei
we cut down in all directions we will flint
u marked improvement in the net earnings
OF course, as you know, the manufactur
ing industries throughout the countr,
have been depressed by the panic and GU
earnings have consequently fallen Of
But am hopeful that bu-iness will reviv
again. The present panic is probably du
to some extent to over-prosperity and oyel
speculation. Such panics must, Of M
cessity, occur in rich and well-governet
] countries. The conditions which exist i
, this country naturally foster extravaganza
of various kinds and these extravaganza
tend to produce panics. In poor country
, or badly-goyerned country, the sam
conditions do not exist and panics, sue
as we have had here, are not likely t
come"