Year: 1872

we can only gradually rid ourselves. 1t is an
Augean stable which IL Will take time to purify


The plan OF Fisk and Gould was to delay the nav
merits as long they could. Our paymasters ought
to start out on the 18th OF the month and go along
the line, paying on the men. They stop at each
place on certain day. thus making 1t q month be-
tween each payment. The old plan was to send
the paymasters out at the end OF the month thus
keeping the money from the workmen half month.
This evil was repeated SO often that the workmen
should have been paid Of course the men couldn't
stand this so that they would sell their claims by
who took up these orders would 9enerally charge
q discount OF twenty-five per cent The w0rkmen,
who thus were paid only three-quarters OF their
up their legitimate pay. Thus Erie was paying
twenty-five per cent more to its workmen than any
other railroad. This plan opened the door also to


AN IMMENSE DEAL OF swINDLING.


FISK and Could by keeping the money back, used
to operate upon it. The men who discounted the
orders OF the workinGmen made an enormous and
ilegitmate profit, and 1t introduced into the man
agemenr aS a pian which would have been death to
first evils which attempted to REFORM and nave
already succeeded IN bringing the wages OF the
manner am enabled to get men to work for the
Erie road at the same pay that they worked for
which win be worth millions OF dollars to Erie
every year. Our paymasters now start out on the
each month"; and in future their pay viii never be
allowed to fall behind as II did. The reform gives
great satisfaction everywhere and cuts or a sys-
to the road. Men work better when they are sure
Of their pay regularly on the day 1t is DUE 1t pre-


THE wORKNGMAN CONTENT.
l consider that nothing could have been more in
his proper hire. They are the least able to stand it.
and 1t only goes to show to what devices the for
mer managers would proceed to cheat and de-
fraud


REPoRrER-In what other ways have you intro
duced ref0rmp


ing the very vitals Of Erie during the past Few
years-litigati0n and legislative EXPENSES have
no need 70 explain to you the enormous legal ex-
penses which have been put upon the road, and all
TO cover up the greatest frauds The fees alone of
lawyers ran up to hundreds OF thousands OF dollars
courts OF law were turned into markets where de-
cisions were obtained at the price OF gold This,
doesn't have to pay for '.Biack Friday" suits any
more nor for lawsuits which never should have
had an existence. But as great


CURSE


as this, and perhaps greater, was the item of
legislative expenses. On the one hand Fisk and
Gould and on the other Vanderbilt were fighting
iOr q supremacy which was only to be bought at an
enormous sum. Thus 1t went on year after year. the
rights, tne revenues OF the property they owned
being used to prevent them. Never was there o
OF the country than this. And Heaven alone knows
when 1t would have been broken up but for the
death o. the prime mover IN all TINS business yne
everlasting and enormous expenses. Not even SO
rich corporation as the ERIE could stand 1t, and
God knows where 1t would have ended This out
lay will occur no more. believe t Is possible to
run railroad without bribery. At all events the
Erie win be run without It. When men walk in
devious paths it is OF necessary to cover up
their tracks In some way, and legislative cOrrup-
to ton seems to have been the most successful and
Of member OF the Legislature from the interior
Of the State telling me that in one case


HE OFFERED HIS VOTE TO ERIE
for $2O 900. II not needed ut the tllne and the
offer was refused. He told me that the next time
they did want him he wouldn't sell his vote less
than $5O,OO0, and he got it, too, few days after
wards


DEVELOPING THE RESOURCES OF THE ROAD
and bringing in money besides those you have
mentioneda


they can hardly be enumerated. Fisk and Gould
had some interest in every department connected
passenger M department. Lots Of people were e get
ting commissions for all sorts OF things. There
Were all sorts Of agencies which We're paa S com
and hope to curtai more. There was never any need
OF this sort of thing The money which reached
the road finally was sometimes nearly halved from
what 1t originally was Again, the freight depart
ment was badly organized, and gave opportunities
have reorganized. At present, however, am
applying myself partic ularly to perfecting the
railroad service has been badly neglected. But
above all


THE LOCAL TRAFFIC


has, has been allowed w to droop There s p splendid
which will be worth great deal to the road.


REPoRTER--And now as to the earnings Of she



to answer Since have been in my position /
Ss h E Of
difficulty. The plan OF publishing weekly reports
no reason to believe that these reports were based
on fact They said what they liked; there was no
one to gainsay them, SO that when you ask me for
comparative statistics must put you or until /
have come to thorough mastery OF the subject. !
can say confidently, however, that our earnings for
the months OF April May and June have been
S503.g52


INCREASE UPON THE EARNINGS
OF last year. Fuller details 1t is impossible to give
at present.


kEPORrER-Can you tell me how the profits
compare with those OF last year


Mr.. WATsON-FrOm January l. 1872, up to this
more than they were for the same period OF 1871.
been inaugurated, and in spite OF the two great
drawbacks OF the increased price Of iron and the
q Ssy I coal
they were last year at the same time, would have
made our profits greater by many hundreds Of
thousands of dollars. But these are, Of course,
things which we cannot overcome.


THE GREAT COAL ROUTE.


In order to obtain view OF the situation from
another standpoint q HERALD reporter called az
the Offices OF the Delaware, Lackawanna and West
ern Railroad Company, and was fortunate enough
Company co sS NJ e 5ee The genssman was ap
to his eyes, In business, and was signing checks at
o rate that fairly entities him to rank with Mayor
Hall in his ability to rattle or voleys OF mcchan
Cal signatures and talk to two three visitors at
the same tline giving due attenLiOn 10 each suD-
ject.


Upon being informed OF the OBJECT OF the report
er's visit Mr. Odell said he was not aware OF any
causes which had contributed very materially dur
ing the past four or i've months to increase the
cost Of operating railroads. The Delaware, Lacka-
wanna and Western line had not experienced any
advance In expenditure beyond probably what they
had incurred in the way Of actual investment in
property or equipment for the benefit OF the
road. They had been laying down con-
siderable quantities OF steel rails; but this
could not be looked upon as augmcnting
ha
q thousand tons OF steel rails arrive and are laid
down next month on the road, their cost Is oi
course charged to the disbursement account OF the
line and may make the months expenditures ex-
ceed the total receipts for the month by several
hundred thousand dollars. Still this must not be
looked upon as increasing the operating expenses
az ~ for in fha VI no