Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1904-10-06
Dep sing OF l.. I. IO-ee Will Ta' g
From Rock Island Road Many
Subordinate Officials.
BROUGHT 2OOFROM THE EAST
General Superintendent McHim Re
signs and General Manager Mil
LEI Said to be Next.

pany. it has developed, is to be of far |
reaching effect. In it are involved !
dissatisfaction with eastern. ideas in |
the management of western railroads |
and return 10 the methods in force !
before Mr.. Loree was induced to leave |
the Baltimore & Ohio 10 come west !
The first Indication of this phase |
of the difficulty came i'll the rCsigna- |
lion yesterday OF c. S. McKim. gene1-'
al superintendent Of the Rock Island
system. the resignation was prompt
ly accepted. Nj McKim was former
" superintendent of telegraph for ihe
Pennsylvania road. and was one of
200 railway officials brought west by
President Loree when he assumed
management Of tho Rock Is'ani.
Nc McKim will be succeeded by
". II. Hobbs, assistant general super
intendent of transportation. who has
been in the service of the Rock Island
for the last 80 years. and is considered
one of the most competent operating
officials in this country.
There are other indications that the
next man to go is likely to be II. |.
Miller, general manager of the Rock
Island system, whom MIR Loree
brought from the Vandalia. Other
changes in minor positions are expect
ed soon.
DIsnppOints ROc,< Island Owners.
While none of the railway men in
terested in the new regime of the
Rock Island would say in so many
words that Mr. LOree. the highest paid
railroad president in the world. had
failed to achieve the success expect
ed in the handling of the property. il
was plain that his first years admin
istratiOn had brought only disappoint-
ment to the men in control. Mr..
Loree was enticed away from the east
to do wonders for the west. He was
induced to give up the presidency of
the Baltimore & Ohio. which he had
held for two years, and to take the
direction of the Rock Island by an
offer of a salary of $75.OO00. secured
by five year contract. and by the
further temptation of bonus of $500
900 in Rock Island common stock. This
stock is now quoted at about $50 a
share.
By the terms of the contract Mr..
Loree was to receive the salary even
in the event that he should sever his
connections with the road and in the
event of his death the salary was to
continue to be paid to his widow The
common stock bonus is now worth
$150,000 on the basis of yesterdays
quotations. The year which Mr.. Loree
spent in direction of the Rock Island
J.,
of 100000 in sight if not immediately
in hand.
Friction From the Start.
The friction which. it appears. has
existed in the Rock Island manage
ment ever since the coming of Mr..
Loree and his 200 eastern railway of
ficials became critical when, a short
time ago, the president attempted to
appoint an eastern traffic official to the
position of third vice president and
traffic manager.
B. F. Winchell demurred at the time
on the ground that such a place
should be filled by a man of great
experience in western traffic affairs.
Mr.. Winchen finally won the point.
and the position remains open to this
day. Another evidence Of the dissat-
isfactiOn with the Loree management
is the division of duties which will
characterize the new remge. Presi-
dent Winchell will have supreme
charge of the operations and traffic
of the Rock Island system, and Pres
ident Davidson will perform the same
duties for the Frisco system. Presi-
dent Mather of the Rock Island COM
pany is the only official whose juris-
diCtion extends over both the Rock
Island and the Frisco systems.
Mr.. LOree's methods. it is said. eff
fectually proved to the owners of the
Rock Island that eastern principles of
operation cannot be applied TO west
ern roads. The introduction of Bal
timore & Ohio methods caused both
Mr.. Winchell and Mr. Davidson to re-
bel. They pointed out the fact that
in the west the traffic is not nearly so
dense as in the east. where it can be
cut and fitted to meet the exigencies
of the operating problems. Mr.. Loree
is said to have committed the error
Of subordinating traffic to operation
and at large loss of revenue.
MOOres POwerIess mt First.
After several months of his admins
tration the company was compelled
10 curtail expenses. and the retrench-
ment is said TO have been at the eX-
pense of the physical condition of the
property. Mr.. LOree's interference
with the financial affairs of the Rock
Island-Frisco systems became unendur-
able to the Moore brothers and those
allied with them. They were power
less. however, TO check his policy, as
Mr.. Loree had been appointed chief
executive of the two systems. 70 rep
resent the interests of Speyer & Co,
Of New York. who furnished the mon
ey TO enable the Moore party 10 con-
summate the Frisco deal In order 10
get rid of LOree and carry on the