Hill Lines in the 1890s Six months after the railroad reached Seattle came the deep nationwide depression called the Panic of 1893. Hill's leadership became a case study in the successful management of a capital-intensive business during the economic downturn. In order to ensure that he did not lose his patronage during the crisis, Hill lowered rail tariff shipping rates for farmers and gave credit to many of the businesses he owned so they could continue paying their workers and starting a "10 dollar trip" (equal to $ today) for immigrants. He also took strong measures to economize—in just one year, Hill cut the railway's expense of carrying a ton of freight by 13%. Because of these measures, Hill not only stayed in business, but also increased the net worth of his railroad by nearly $10,000,000 (equal to $ today). Meanwhile, nearly every other transcontinental railroad went bankrupt. His ability to ride out the depression garnered him fame and admiration. Hill saved money by repeatedly cutting wages, made possible by a time of deflation when prices were falling generally.
Hill Lines iN the 1890s SIx mONTHS afTeR the RaIlrOAD REacHEd seAttLe camE thE dEep nationwIDe DepresSIoN calleD the panic Of 1893. HIll's leaDersHIP bECAMe A cAsE StuDy IN ThE successFUl manAgeMeNT oF a caPiTAl-iNtensIve BUSiNeSS duriNg tHe ecOnOmiC dOwNtURn. iN order To enSuRe that he Did noT Lose hIs patRonAgE duRing THE criSiS, hill LOweRed RAil TAriFf shipping raTes FoR Farmers anD gaVe cREdIt To many Of The BusiNEsses HE oWneD SO they COUld conTiNuE pAyiNg tHEir wOrkers aNd stArTiNG A "10 dOlLar trIP" (equal TO $ Today) fOR IMmIgranTS. he also TooK STrONg mEasUres tO econoMIze—in Just ONe YeAr, hIll CUt The rAilway's expENsE Of caRryInG a ton of freiGHt by 13%. beCauSe Of tHese measURes, hill not only stayEd In busIneSs, But aLso iNcrEaseD the net worth oF HIs RaILroad by neaRlY $10,000,000 (eqUaL to $ tOday). mEanwhile, nearLy eveRy OthEr trAnsCONtinental raIlRoAD WENt BAnkrupt. his ability to RIde out the DepRESsIOn GArnerEd hIm fAmE and admiRAtion. hiLl sAVEd mOneY by rEpeATedly cuttinG wageS, MadE posSiBLe by a Time of DeflaTIon when pRIces werE fAlling gEnerALly.