The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-02-01
THE SALARIES THEY GET
CONFIRMATION RECEIVED By HEADS
OF RAILROADS AND BANKS.
Some of the Highest Figures Paid 10
Experts I'm Various FieIds-Extrn
Fees Received.
New York Evening Post.

Corporation mat not more tnan Twelve men
in its employ, or in the employ of its SUBJ
sidiary companies. receive salaries OF $4,000
or over, has directed attention TO the COM
pensation paid heads of great railroads and
large banks as anording an interesting
basis OF comparison The steel trust has
fixed 100000 belonging TO the Office Of
president of the corporation itself. but has
not more than fifty men who will receive
from $4,000 to $4,000 year, some two
hundred who will get from 5000 TO $1,000.
and about fifteen hundred who are COM
pensated at the rate OF from $500 10 $500
annually.
Although the railroads and banks pay
some high salaries. very few men are COM
pensated at $4,000 or more a year. A care
full canvass of the railway high-salary list.
among friends OF officers who know what
they are paid. developed some interesting
facts. One railroad president. A j. Cassatt.
OF the Pennsylvania, is generally credited
with receiving $4,000 a year The presidents
who receive $4,000 a year, or near f. are
few in number. Some OF the younger men
brought East within the last few years are
among these, and are paid about this
amount for the hard work they have shown
themselves capable OF. When Frederick
D. Underwood was talked of for president
Of the Erie. James ]. Hill. II is said. told
j. p. Morgan that he would like TO place
Mr.. Underwood at the head OF the latter
road. Mr.. Underwood, who had strength
ened the new Baltimore & Ohio road as
general manager under the reorganization,
made two inspections OF the Erie last year,
and, according 10 report, was called 10
Mr.. Morgan's office one day and asked
what he had found. 1t is understood that
he said that with free sway he could save
20 per cent. Of the cost OF operating the
Erie road and put IL on par with the
other trunk lines. He said mat IL would
take the hardest work OF his life, and that
he would stake his reputation on IL for
$4,000 a year. His terms were accepted.
William II. Truesdale was wanted by the
Lackawanna Railroad early in 1893. He
had become SO valuable to the Rock Island
as first vice president and general man
ager that the directors bid 10 retain his
services. The Lackawanna, however, out
bid the Western road, and Mr.. Truesdale
came here with corps of Western lfeuten-
ants to direct affairs of one of the greatest
coal roads, and TO make IL also a great
passenger system, at a salary around $oO.00
a year.
VERY COMFORTABLE SALARIES.
Samuel Spencer. president Of the South
ern Railway. which has spent millions in
developing the South, receives $4,000
year. E. p. Ripley. president OF the At
Gibson. Topeka & Santa Fe, since its reor-
ganization. whose policy has practically
built up the system to its present strength
from Chicago to San Francisco. receives
$4,000 a year. it is understood generally
Marvin Hughitt, president Of the Chicago &
Northwestern Railway since 1887. receives
$4,000 a year. and A j. Earring, president
Of the Chicago, Milwaukee g. st. Paul Rail-
road, receives near that figure. William II.
Newman, president of the New York Cen
trail. probably receives $4,000. since ne
$4,000, ii was understood. and accepted
q much larger sum, said TO be sloc,oVO a
year. to become the head OF the American
the Union Pacific was offered fiattering
salary to leave the Northwestern. and Is
understood to receive about $1,000 year.
while no estimate can be placed upon the
several salaries Of z. II. Hartman In his
| official capacities in Union Pacific and
| Southern Pacific systems.
George b. Harris, president of the Bur-
| lington road. is understood to receive 500
| 900 year. and c. s. Mellen, of the North
| erni Pacific, a similar sum. James j. Hill,
| who IL president of the Northern Securities
| Company. is understood to draw $4,000 a
| year and nominal salary as president or
| the Great Northern Railway. A. 3. Stick
| ney, who heads the Chicago & Great Vest
ern, probably draws a salary OF $500 a
| year. He is the father of his own road. as
! few other railway presidents are In the
4 T..
| ST. Louis & San Francisco system. which
has been branching out so widely the past
year, is understood TO receive $500
| year Sir William Van Horn. the head OF
| the Canadian Pacific, probably receives a
salary of $4,000 year since becoming
1 chairman of the board Charles NJ. Hays,
vice president and general manager of the
Grand Trunk road, was reported 10 have
| been offered $40 900 year to return TO that
system when he left the Southern Pacific.
Joseph Ramsey, r., president OF the wa
| airy of $4,000 a year. George Gould Is
| president of many roads. and through his
control and that Of the Gould family prob
ably draws many salaries, which aggregate
| a very large sum. chiefly made UP of his
| salary as President OF the Missouri Pa
| ciic road.
| EARNINGS ION THE SIDE"
Many presidents of large systems draw
! smaller salaries also, from occupying the
nominal positions of presidents OF several
controlled, or subsidiary companies. This
| adds TO their income and in the case of an
officer like E. p. Ripley. for example. is a
consideration Of keeping a man of great
ability at the head of a system at a salary
smaller than he might be able TO obtain
somewhere else. Probably several railway
presidents receive, combined salaries as
great as President Cassatts in this way.
Smaller roads pay from $1,000 a year up
| ward. according TO the Importance of the
line, its mileage, territory. and whether IL
| is established or requires a master mind TO
| develop its resources and the territory
| which IL serves. Many presidents positions
are actually nominal or merely executive.
| the policy of their roads being directed
from higher up.
In the great "one-man" power system
| which prevails generally on the railways or
| America, and in the great systems here. the
| number of very small salaried officers Is
| comparatively small So small, indeed, that.
| with an expenditure for labor by the rail-
ways last year OF S6l00o,ooO. the 800 OFF,
GERS including all officers OF the railways.
received average pay OF 500 per day
CAS-, 800 engineers getting an average OF 1918
per day, the highest average next to off
| cersD. or only about SO per cent. of the pay
roll of the railways.
While New York bank presidents are paid
WELL their salary represents oftentimes but
a small portion OF their total income. Men
of SUFFICIENT ability to gain the controlling
position in prominent banks are sought for
6irectorships in trust companies and other
financial institutions, TO say nothing OF the
number of reorganization committees on
which they are asked TO serve. All these
positions pay well and take up little time.
being I'm most instances of an advisory ma
ture and without very onerous duties. But
the good judgment and business foresight
which prepare one TO MI such positions
are the result OF long service and much
crudgery In comparatively unimportant
places.
While IL is not known what all New York
banks pay their chief officers. II is believed
that $4,000 a year represents the highest
salary paid any bank president in the city.
The $10.000o0o banks naturally pay the
highest salaries. but their presidents are IN