The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1898-04-03

observations of an Englishman Who
Has Been Studying Them.

London Times.
In a word an American railway repre-
sents 'one-man power much more than
anything with which we have to do in the
railway world here. And, Just as we have
seen "one-man power" in this country pull
down a great banking house, in spite of a
position and a prestige almost equal to that
of the Bank of England, so in America an
incompetent reckless still more a dishon-
est, president can in few years bring the
most solvent railway company into the
hands of receiver. Given, on the other
hand, the ideal president, shrewd and far
seeing, firm yet onciliatory in dealing with
the public and the public authorities, and
honest not only IN being above mere pecu-
mary temptation-moSt of them are that
nowadays-but in refusing to sacrifice the
future Of the undertaking to the present
given such man. and he can do more for
his company than any one man here, be ne
chairman or general manager. For TO his
colleagues, the directors, he speaks an
equal-or, indeed. as more than an equal,
in that as rule, though the Vanderbilt
chairman-while at the same time he DOM
mates them by his superior knowledge of
railway matters in general and of their own
railway III. particular. And if, on the one
hand. he shapes the policy of the board, on
the other he diSposes absolutely of the
services of every member of the executive
staff and moves his men about like chess
men till he has fitted each into the place
best suited for him. / came, for example,
upon a case of an officer of exceptional
ability, retained in a nominally subordinate
but very important post, who was receiving
the normal salary of his position through
the ordinary pay rolls and as much again by
check passed through a special account.
The result is that American railways of
fer at once some of the best and some of
the worst investments in the world. 1t is
very difficult to speak positively, the meth
cd of accounting in the two countries be-
ing entirely different, but l question wheth-
er the most conservatively managed Eng
lish railway is as conservative as the best
American roads. L know one railway-there
is no need to mention its name, as the
Americans are much too wide awake to al
low any of it's securities to cross the At
lantic-which is at the present time earn
ing Is per cent. on it's ordinary shares. Yet
it pays, and will, / am assured, continue
to pay, a dividend Of only half this rate, the
whole of the surplus being, in the phrase
of a railway president of my acquaintance,
instance; a passenger on the main line of
the Pennsylvania, az he travels up the
beautiful valley of the Juniata, may see,
in not a few places, side by side Cd the
original single line, which the railroad
company bought from the State of Pennsyl-
fashion almost along the bed of the stream:
CD a first-class double line substituted for
it, but still with a good many curves and
kinks; (3l the main line of the present day,
as straight and as solid, built, one might
say in as monumental a fashion as though
And the whole process of evolution up
from the tram road stage of DEVELOPMENT
has been paid for out of revenue.
/ must return later on to the difference
between English and American ideas as to
dividends and "bettermenfs.p Here it is
only necessary to notice it as illustrating
the enormous power of the American presi-
dent. For 1t is clear that no English chair
man or general manager could enforce upon
the shareholders policy OF year by veal