The morning news. [volume] (Savannah, Ga.) 1887-1900, 1897-01-28
INTERESTS OF THE EMPLOYEES.
PRESIDENT CONFER TALKS OF THE
RUMOR ABOUT SALARIES.

said He Would Consider the sugges-
ton of n Reduction Only as a Last
ResOrt-The Matter Has Never Been
Talked of Among the CentraPs
OmciaIs-Fbey Have No Idea at
Present of Any such Emergency.
The CentraTs Debt For Taxes VIII
Have No Effect ON the Salaries.
There Are $15,OOO,O 900 of the Gem
trails Junior Securities Involved
in the Questions at Issue.
The report comes from Atlanta, accord
ing to dispatch in yesterdays Morning
News, that one of the railroad commits
sioners attributes the talk about the re-
duction in the salaries Of the Central Of
Georgia railway employees, to the fact
that the Central will have to pay nearly
900 in taxes to the cities, towns and
counties on the mainline between Savan-
nah and Macon, and ridicules the idea
that it was caused by the reduction of
20 per cent. made in the fertilizer rates.
THE question of the reduction of the
salaries of the employees of the Central
railroad. is the very last thing that I
want to consider" President H. NJ. Co.
mer said when asked about the matter.
1t is something that has never been talk
ed about among the officers OF the road
for the simple reason that such srep
would be taken only as a last resort.
I'VE feel very kindly toward the en-
ployes of the Central. They have been
true and loyal to the interests of the road,
and we think we have just little bit bet
satisfied that they are not receiving any
more than they are entitled to, and until
it is made apparent after every effort has
been made. that the system cannot be
maintained and pay it's fixed charges,
there will be no suggestion even, of in
terfering with the salaries or wages of
the employees. Every possible effort will
be made through other sources to main
tain the property and pay
its fixed charges, and should every
resource fail, it might be necessary TO
make some such reduction. If this should
be the case it will be from the top to the
bottom without discrimination, but l
trust the remedy will have been found be-
fore we reach that point.
Mr. Corners statement on the subject
will undoubtedly be appreciated by all of
the employees. He says it is true the Cen
trail has a great deal of money to pay
out for taxes, because of the decision in
the matter of the Glenn bill, and while
the road has not the money at hand to
pay them now, it is expected some ar
rangement will be made in due season.
The system has also lost much, as has
been stated, by reason of the railroad
commissions action with regard to the
fertilizer rates. and it is both OF these
losses from the revenue that must be re-
couped. The report about the reduction OF
salaries is supposed to have originated
from the fact that the railway employees
of the state have united in a petition to
the commission for a restoration of the
rates on fertilizers, the reduction not hav-
ing accomplished any of the objects
sought The railroads of the state 1t is
understood, are going to make every ef-
fort to have the rates restored, and the
question has by no means been disposed
of as yet.
These losses to the Centrars revenue
mean a great deal more to those interest
ed in the property than is apparent on hrst
consideration. 1t is weil-known that there
| are $15,0000O0 of junior securities on the
property, commonly known as the first
second and third income bonds, which re-
ceive no interest unless the property earns
it. Still this represents actual money
that was put into the property, and every
dollar taken from the CentraPs revenue
means so much less chance for the hold
| ers of these income bonds to receive any
interest. The question is viewed in a Sc
rious light by all the railroads of Georgia
| Vast property interests are at stake and 1t
is safe to say the railroads are not going to
| give in without a struggle, though just
what they can do remains as yet to be
! seem
The report comes from Atlanta that the
| bondholders of the Southern, the Central,
| the Plant system and the Georgia South
/ Florida Georgia Ala
| bama will probably join together TO go
| into the courts and attack the entire
| freight tariff of the state commission. This
| is the result OF the reduction in the fertil-
| izer rates. That was the last straw which
| broke the camePs back. The bondholders
| say that they are not allowed to earn a
reasonable return on their investment and
they have determined to appeal to The
l. United States courts for relief.
| At first il was decided to attack the fer
! tilizer rate alone. Then after some con-
| ferences the matter was left 10 the law
yers They talked the situation over and
| reported to the bondholders. At the same
! time the traffic departments were called
| on to prepare statements to show what
| the companies earn in Georgia.
All the railroad officials say that rates
| are lower here than in any other state in
| the union, not excepting Illinois, with her
| great railroad mileage and vast popula-
ton; or Massachusetts, with her large
| population per mile of railroad. Texas has
| always been considered as about the hard
! est state on railroads, with Kansas and
| Nebraska close seconds, but it is claimed
| by the roads that Georgias commission
has beat all the others In regulating rates
| down.
That bondholders claim that they are
entitled to their interest and that ii is an
| just to expect them to give good service
| and then prevent them from making
! money to pay for It,
PITTS CASE CONTINUED.