The morning call., 1894-10-18
Ak OF ECONOMY.
Huntington Selects More
Victims.
DEPARTMENTS TO SUFFER.
Goodman May Lose One of His
Assistants.
ENGLISH SHAREHOLDERS FEAR.
No Dividends From the Central
Pacific Causes a COmmOtiOn in
the London Office.

The ak of economy has new victims
awaiting its fall al Fourth and Townsend
streets. The detective department is to be
all but abolished, and a number OF en-
ployes In that field of work have already
received their dismissals; but report goes
that much more important step in the
way of lessening expenses has been or
dered by c. T. Huntington, and that the
passenger department is the one which is
now to suffer.
1t is stated on reliable authority that
Mr. huntington has determined to curtall
expenses by reducing the number of as
sistant general passenger agents from
three to TWO. The name of the unfortu-
nate one OF the trio has not been made
public. When asked as to the truth OF
this report I. II. Goodman. general passeD-
ger agent of the company. declared that he
had not been Informed that such was The
case, and added tina, he did not believe
that such a change was contemplated.
1t is also reported in this connection
that the number of travelling passenger
agents is TO be reduced from five to three.
To this statement Mr.. Go oman answered
that there was enough work for the five
men TO do and that he did not believe the
number would be reduced.
In future the Central Pacific will pay no
dividends TO its stockholders. This fact
has caused great deal of dissatisfaction
abroad.
TIE anxiety of the English stock
holders of the Central Pacific Company
has taken definite shape in the engage
ment of Clarence Smith to come here to
look after the foreign interests.
10 speaking OF this matter as announced
thp Hisnatphaa VaStpr1aV q. l.,
Lansing. secretary ana controller of the
Southern Pacific Company, said:
1.-The Central Pacific has a London Office
and a resident director there in the person
of Mr.. Brotherton, WIN has for a number
If years looked alter the interests of the
number of visits to San Franclscon. His
suggestions made at the time of these
visits regarding the Central Pacific have
been accepted by the other directors as
promoting the Interests of the stock
holders both in England and America.
"There is a large amount of Centra;
Pacific stock held in England, but the
amount is not shown on our books, as
many of the English shareholders have not
registered their stock. leaving it in the
names OF the persons to whom IL was Origi-
nally issued rather than TO send il 10 this
country for transfer. SO that our books
do not show who the English stockholders
hold.
The last dividend was paid on Septem-
ber 10, 1898" continued MIR. Lansing.
The general depression in business and
the pending settlement of The indebted
| ness t0 the Government have made it un-
| desirable 10 pay Dividend this year. The
| dividends have been per cent per anDum
| payable sem-anDually.
"The English shareholders will doubt
| less do what they think best to protect
| their own interests. Tnev are anxious
| that any reorganization growing out OF the
| indebtedness to the Government should be
| such that the road would pay dividends.
"The English shareholders bought stock
| subsequent to the date that the Thurman
act became effective. relying on the belief
! of the Government statement that the
company would be required 10 pay 25 per
| cent of its net earnings, which would bt
| sufficient TO paw the Government inde bted
ness. But the net earnings have beer
much less than was predicted and tht
| Governments share of 25 per cent ha,
| been inadequate TO meet the interest nT
the bonds issued in support Of the RAILROAD
| by the Government.
Under the old lease the Southern Pa
| cifc guaranteed The dividends of the Cen
| rra Pacific. Under the Bew lease made ir
| February the Southern Pacific Company
does not guarantee the Central Pacif,
dividends and the dividend was passed
| AS matter Of tact the Southern Pacific
under the old lease, had To make good
yearly de- eficit of from $i00.000 to $500. .00
as result of guaranteeing the 2 per cen
dividend of the Central Pac fic'
| The Traffic Association is Keeping up it
active canvass for subscriptions TO tn,
valley road. In reference TO the projected
| line J. S. Leeds, manager of the Traffi,
| Association, said: "We have some very
gnOd men, wealthy men. among our sub
scribers. bnt just now when The Southern
| Pacific Company is doing all that lies il
its power to prevent our success it woulC
not be wise To announce their names ant
expose them to the annoying policy whicl
the Southern Pacific Company might pur
| sue.
"The public has been well informed as t,
| the benefits of the valley road. Thos
who believe in it should not hang bacl
now under the impression that some on,
else will subscribe in their stead. l vii
state, however. and most pointediy, tba
the road will be built"
q. w. Luce, local general freight agen
of the Union Pacific, will succeed A. d
Shepard as assistant general freight agen
of the Southern Pacific Company on No
vember /.