The record-union., 1896-07-19


"As compared with 1893, the compar-
ative expense in the next succeeding
year is shown to be IS per cent less on
the Pennsylvania and 80 per cent. less
in 1898; 10 per cent. less on the New
York Central in 1894 and 13 per cent.
less in 1895; 3 per cent less on the
Southern Pacific in 1894 and Z per cent.
more in 1895; whilst for the first five
months of 1896, as compared with same
period of 1893, the reduction in the
expenses on the Southern Pacific was
only 10 per cent. as shown.
This proves conclusively from figures
taken from annual reports of the COM
panies that the rate of reductions in
track forces and expenses has been far
less on the Southern Pacific lines than
on either of the other two that are set
up as models of safe and efficient man
agement. Figures for 1896 are not
available for any line except our own,
but, judging from the criticisms of pas
Sengers who have recently passed over
the Pennsylvania, it would seem that
the evidence of the closest kind Of econ
omy were apparent on every hand both
in equipment and track, so that even
the pennsylvania Railroad, with its
enormous traffic, feels the evidences of
depressing business prevailing all over
the United States.
In the Financial Chronicle of June
18th, in leading editorial on the finan-
cial situation, occurs the following Ian
guage, all of which is strictly true as to
the Southern Pacific, and would apply
equally as well to it by simple change
OF names wherever necessary:
The announcement that the Penn
sylvania Railroad has given orders to
retrench is not difficult to understand
l. is the natural and inevitable out
growth of the existing condition. At the
same time in its bearing on the future If
Is easy to make too much of the action
NO large corporate undertaking re-
sponds more readily to an Improvement
in the business situation than does the
Pennsylvania Railroad. This is true in
double sense. In the first place the
revenues of the road are quick to re-
fleet any change for the better, and in
the second place the managers are ouiclx
to recognize the change and what it por-
tends and to make their plans accord
fngly. Of course, the reverse is also
true, that as the business outlook as
sumes an unfavorable aspect and trade
declines, the Pennsylvania Railroa n
soon feels the adverse effects in a, con-
traction of its revenues, and the man.
ayers are obliged to modify their plans
to meet the altered conditions. This is
the state of things at the present mo-
ment. The roads revenues in recent
months have not come up to expecta-
tions, owing to the pail which has been
spreading over the business world, and
at the same time the prospects for the
immediate future are not altogether
clear on account of the contest which is
going on in the political world between
the silver people and the adherents of
the existing gold standard. OF course.
at such a time the managers would not
be justified in continuing a scale of ex-
penditures which had been arranged on
the idea of growing prosperity and Wild
enlng activity in trade. Nor would the
management be justified in making lib
eral outlays ON capital account, since
this involves burdens in the way of ad-
ditional interest charges which 1t would
be unwise to assume at such a juncture.
Should the situation undergo sudden
transformation, as it we'll might, the
Pennsylvania Railroad will be the first
to feel the current and to follow It. i