New-York tribune., 1910-06-04
RAILROADS WILL RETRENCH
Going Slowly Now, in View of the
Injunction Proceedings.
IMPROVEMENTS HELD UP
Waiting Policy Adopted by Off,
cials, Who Say Expenses
Must Be Gut Down.

Reports from various points In the West,
as well as statements made here by Off
GERS of railways indicate the probability
of general curtailment of expenditures by
the roads OF the country as an outcome of
the uncertainty caused by the govern
ments move against the roads of the Mid
die West which Mad planned TO advance
their freight rates on June /. President
Ripley of the Atchison was quoted In dis
patches from Chicago as saying:
Wherever possible we have cancelled
orders for equipment or had them held OF.
waiting developments. We stopped work
on our double tracking of the Atchison
from Chicago TO the coast about ten days
ago. We have cut down the working hours
in some of our shops to half time, and, if
necessary, we will later lay off many OF
our men. 1t is absolutely necessary that
We in some way meet the increased cost of
maintenance and the decreased net earn
ings.
I'VE will go ahead where contracts were
let, but suspend orders contemplated for
improvement and new equipment. 1t is
contrary to every law of business that one
company handling the same commodity as
another should not consult its competitors
The policy of the Illinois Central at
present is a waiting one" said W. L.
Park, vice-president of that railroad. I'VE
have e number of big improvements In
view, which we are deferring until We are
able to raise our rates and have a larger
income. We had planned TO establish
yards at several points along the line. buy
locomotives and rolling stock, and, Of
course, thus indirectly help business in
general; but as the matter now stands we
are waiting to see what the effect will be
of our attempt TO raise rates"
Rock Island Lays Of Men.
1--WE have laid off probably about fifteen
hundred men in the last few months to
make up for our drop in earnings" said
President Nudge of the Rock Island, land
unless the government permits US 10 In
crease our freight rates and in that way
increase our earnings ne must meet the
situation by cutting down forces in the
roads shops, shortening hours and cam
ceiling orders for equipment
General Manager Smith of the st. Paul
said that his company had thus far made
no plans for curtailment of equipment or
cancellation of orders.
Vice-President Byram Of the Burling-
ton said that that company had cancelled
nU equipment cTOsrS, DuL CndI retrenCit-
ment throughout the system would be
necessary. No action has yet been taken
by the Hartman system. but a member OF
the executive committee said yesterday that
unless the railroads were allowed to in
crease their rates the Union Pacific and
Southern Pacific would be obliged. like
other roads, to protect their future position
by cutting expenditures to the minimum.
yice-President Childs of the New York
Ontario & Western said that the company
had had an improvement programme in
contemplation but would have to go very
slow about this now.
The New York Central, it was learned
yesterday, has decided to postpone indefi-
nitely projected improvement work the
cost of which Is estimated at from 81
Onn Gp1 30 5000 900 and will place no more
orders for new equipment at present. -
President Underwood Of the Erie In a
vigorous analysis of the situation, traced
yesterday the effects OF restriction of the
railways activities and incidentally paid
his respects TO the administration.
IF the government stops the railroads
from increasing rates" said Mr.. Under
wood. 'the railroads will survive. They
can limp along but their activities will be
checked. The conditions in the commercial
world following this will be most serious
] do not mean alone that the effect OF the
will be disastrous, but this same
condition applies to all lines of commercial
activity.