New Haven's Pelley

To U. S. railroads last week came another important 1929 shift of executives. Previous noteworthy changes involved the Southern Pacific. They were the retirement of William Sproale as president, succession of Paul Shoup to the presidency, and the resignation of Hale Holden from the Chicago, Burlington & Quincy to become chairman of Southern Pacific's (New York) executive committee.

Last week's alteration concerned the New York, New Haven & Hartford, which has been operating without a president since the resignation (Nov. 27, 1928) and death (Dec. 7, 1928) of the late Edward J. Pearson.* To the New Haven presidency went John Jeremiah Pelley, from the presidency of the Central of Georgia Railway Co.

President Pelley found his new railroad in better condition than it has been for many a year. In 1928 the New Haven began paying regular quarterly dividends on its common stock for the first time since its overexpansion in 1913.

From Georgia to New England is a long step, but President Pelley was stepping even farther than that. He was born in 1878 at Anna, Ill. He began railroading as Illinois Central station clerk at Anna (1899). There followed many years, many promotions, until, in 1924, he became vice president in charge of operations. In 1926 he left the Illinois Central to become president of the Central of Georgia--an Illinois Central subsidiary. No salary statement was given out by the New Haven. It is believed that Mr. Pelley received $40,000 a year as head of the Georgia road.

Able, thorough-going (when he took up golf six years ago, he broke 80 during his first season) Mr. Pelley has had many a knotty problem as Central of Georgia president. During 1927, gross revenue of the Central of Georgia decreased about $4,000,000 or 13.15%. There was a disturbing drop of 25% in passenger business and an even more disturbing drop of 10% in freight business. Both passenger and freight revenue continued to fall during 1928, although their decline was not so precipitate. No fault of Mr. Pelley's however, was this unfortunate situation. It resulted chiefly from the collapse of the Florida boom and the increase in motor traffic.

Mr. Pelley is succeeded in the Central of Georgia by Albert Earl Clift, senior vice president of the Illinois Central.

*Duties of the president were attended to by Board Chairman Edward G. Buckland.