The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1904-10-07
RAILROAD WORLD.

The clash between President B. L
Winchell of the Chicago, Rock Island &
Pacific and l.. L. Loree president of the
Rock Island company which is the hold
ing company, and chairman of the Chi
cago, Rock Island & Pacific and chairman
of the Frisco system, is the chief topic
In railroad circles just now. In reslgning
= Mr.. Loree gives up one of the highest
railroad positions in the United States
His fve-year contract made with the
Rock Island company, when he accepted
the presidency provided that should he
quit the services of the company under
conditions such as have come about his
salary would be paid during the life of
the contract He was connected with the
Rock Island less than year.
A Chicago special to the New York
Herald says of the friction between Win
ehell and Loree:
ut is understood that following the re-
cent annual report of the Rock Island dis
Gle decrease In net earnings far
greater than any other western system
the Moore brothers and their associates
began an investigation at Chicago to
discover the reason. They are said to
have found conditions which are highly
displeasing, although they refused tonight
to utter anything except praise for Mr.
Lorees ability. 1t wa said, however
that Mr.. Loree's failure to gain the APP
prevail of the Moore syndicate was due
largely to the tact tndt he applied east
ern railroad methods to a western system
where conditions are totally different.
His first move was to fill many impor-
tant positions on the Rock Island with
Pennsylvania men, who are said to have
exercised a disorganizng influence. The
organization of the Rock Island was COM
pletely changed from the departmental to
the divisional system obtaining on the
Pennsylvania. where Mr.. Loree received
his training. Accustomed to eastern condi-
tons, where traffic is so dense that 1t can
be cut and fitted TO meet the exigencies
of operation Mr.. Loree is said to have
committed the error of having subordi- |
mated traffic on the Rock Island to opera
ton and at a tremendous loss of revenue. |
Forced to curtail expenses, the retrencr-
ment inaugurated is said to have been
, at the expense of the physical condition
of the property.
The final clash between the two heads
of the Rock Island system is said to have
occurred recently upon the decision that
a third vice president would have to be
selected to take charge of the entire
traffic and increase 1t. Mr.. Loree is said
to have insisted upon getting the SER
vices of an eastern man, while Mr.. Win
chel held out for a western man In
the end 1t was the west against the east
and the west won.
Mr. Loree's rise In the railroad world
was rapid Born in 1858 at Fulton ILL.,,
! he graduated at Rutgers and entered
. the engineers corps of the Pennsylvania
In 1877. In January. 1896. he became gem
eral manager of the Pennsylvania lines
west of Pittsburg. and in January 1901,
the vice president. Two years ago he
was made president of the Baltimore and
Ohio railroad.
The resignation of Mr.. Loree will, 1t is
said. undoubtedly be followed by a re-
organization of the Rock Island with a
view of eliminating the element which he
brought to the company, and thereby
placing 1t entirely in harmony with the
policies and the methods of the new exec
utive head, Mr. Winchell. If this occurs
it will be the third reorganization in the
brief period since the Moores and their
associates took control
The Wall Street Journal says:
Notwithstanding the fact that less than
100000 shares of Louisville and Nashvilles