The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-06-10
The Traffic Managers Story
Something About The Other Side Of he Question oi
Railroad Rates,


n a. q ~, osah,
A. ~ ~ thefs and suoked In sllsrra
eotld nos help crntFaa'lne ihts nee go
sth ihe nld and vpNdsflne n hal Ice
~ n.teh N he fe~t~el ~ h. bsd lNs' NJ mirs
~ ~ nal Ioaf Nv nv HWH es'lmSfipN kut
N ~ and NJ IN huur 7 VEN Wli eih NO
third ~ faks IN nv sitls
Later on I Hioreetlef In arranging siih
IN largest fruit shipping cuhcesns In Cst.
foguia Tor several thcieaNd carloads "
theig fruit ehiements, all eetiihs. N
coufss. The miieaae allowed lhetn m ibef
cars. whlch they ae~,fed me- Sste NJ mos,
espeue,ve construction. This seemsd n
me IN enable them n a., ,heif inonsv h,rs
quite promptly - year ~ IN delay onlv
and after ward learned that their ptoa,s
on the icing charges (which The Rad ratii
constituted g handsome dividend n l,sslf
but did not tha whits tina. The Rhie fAns
and the yellow lane all make ,hs tams
a~llowanosf
was beina eduCs,ed raridly A. 'ha
end ~ o year | knew how "a Gsi b%usinesr.
and I 20, II, The men who oon4 rolled 'hs
Red Line asked no questions. We were
busy and managed "a sidestep n receiver
Another year and ] waa made general
manaGer n the system,
Dur intereat lay largely in the West. and
! urged the company 10 huild still further
toward the Pacific.
About this time there vas = vacancy
above, and 10 my surprise ! found myself In
the presidents chair.
In this position 7 went after rho urda.
veloped West. We built new lines into
unoccupied territory and filled y with
settlers. AZ different centres We helped -
establish new industries Az we were tha
only line into these new districts we made
all sorts Of concessions TO encourage capital,
to develop the country. 10 build new shons
and factories.
When ! had been president ten years we
had opened a new empire. made homes 'or
tens OF thousands, employment for hun.
dreds Of thousands and added to the wealth
OF the republic millions upon millions
At times when touring the system. our II
reach Of the morning paper, I used to 'ale
a certain personal pride in the work accom-.
plished. thought. if you will pardon the
personality, that the president Of the Red
Line was really a big man-mornings when
we got no paper.
AS the country grew these infant indus
tries that we had fostered, actually fed for
years, grew. By and by the White Line
built into our territory, which we did not
own, OF course, but which we had created,
and was followed a year later by the Blue
Line.
OF course the last baby is always the best
and the White Line had a harvest until the
Blue Line tapped the territory. After that
it was a scramble.
All If THE had axroofaH H,t whap ithaca
industries, which owed their very exist
ence to the Red Line, began openly to knock
us ! felt badly. 1t was discouraging. Our
rate was the same as it had been and GORE.
sponded with the rate published by our
competitors.
One day my traffic manager came to me
almost in tears. The bushes was all going
the other way. He was a fine fellow, young
and handsome, and as honest as the sun. I
looked into his frank face for sem, time.
I have exhausted my resources" eaid he.
They all have ANIMALS. Now how am l TO
land these men who control the businese'"
If you wanted a carload of steers how
would you get them?"
"I'd go out and buy them, " said he.
Precisely, and that's how you secure
those shippers-buy them just as you buy
other cattle-as oheaply as you can
My young man looked at me in a puzzled,
troubled sort Of way. and asked:
Won't they resent it?"
MOI II the price is right, " I answered. and
the traffic manager went out slowly, shak.
ing his head.
Almost Immediately business began to
pick up. About this time I noticed a marked
change in the manner Of our young traffic
manager. He had been noted about head.
quarters for his extreme politeness, his
thoughtfulness for others, From a cheer
full optimist he became a confirmed cynic.
II q new shipper was introduced he would
look him over carefully, as IL asking himself,
What will he cost the company"
AS the years went by we managed to
hold our own. By buying a number of
small connecting roads and building ex-
tensively we made OF the modest little Red
Line a great system.
Meanwhile many Of the industries we
had helped along in the early days had
grown to be giants. earning from 10 to 20
per cent. net on the capital employed, while
We in those days were lucky to keep oct
Of the hands Of a receiver.
As they grew, so their arrogance grew.
From infant industries they had grown
to be tyrannical trusts, defying the rail-
ways. They were free to combine against
and conspire against the RAILWAYS, but the
railways were restrained.
The constantly increasing competition
among the railways, tending always to
lower rates, made it easy for the big mo-
nopolies to take us by the throat and shake
US down. Business men become distrust-
full and suspicious Of one another. Rail
way men Of competing lines became
%estranged, each ever on the lookout for
the other.
And these mighty trusts, earning 10 to
20 per cent, kept hammering the rate down.
down. until 1t got to a point where when
we came to give them the bride money
it just about strapped us. AS times i'm
proved We were able to show q small in
erease in earnings; but when a bank, a
packing house or any like industry an
ounce its net earnings 1t is after every
thing has been charged, even to banking
charges, interest on capital, DC. while the
net earnings Of q railway represent what is
left after psyinR working expensas-lahor,