The Democratic banner. (Mt. Vernon, Ohio) 1898-192?, 1910-11-25
~oostsssiclssa s&r9sF &ayB
ARGUES AGAINST j
RATE INCREASES
Attorney Brandsis breaches
Economy to Railroads.
OWASTEODAILY

Shippers Urge Scientific Manage
ment" as Panacea For Ills Of
Which Traffic interests Complain.
Men Interested In Large Manufac-
turing Concerns Testify as to Value
Of System Before Interstate Conn
merce Commission.
Washington, Nov. 22.-Louis d.
Brandeis of Boston suggested to the
heads of railroads that are seeking
to increase freight rates that "scien-
tific management" of their proper
ties will answer the purpose of meet
Ing advanced wages, higher cost Of
material and improvements. Mr.. Bran
deis, who was speaking before the
Interstate commerce commission on
behalf of the shippers, contended
that there will be no necessity for
increased freight rates il the rail-
road officials will only give this kind
of management trial. He declared
the saving to the railroads of the
United States would amount to ST.
100000 per day If their operation
were based on this system.
In opening his statement for the
shippers Mr.. Brandeis said that the
contentious of the railroads were
substantially: That greater net in
come is necessary In order tina, Tres-
ent dividends may be maintained or
be increased; that certain additions
and improvements are nece ssary;
that the need of greater Income
arises from the fact that the ratio Of
the operating expenses to gross oper-
ating revenues has risen mainly by
recent advances in wages. Mr.. Bran
deis said the shippers took ISSUE
with the carriers.
Even If the railroads do need ad-
ditional net income" said he, ut
should be secured through greater ef-
ficiency and economy of operation in
stead of resorting to the dangerous
expedient of raising freight rates"
Mr. Brandeis referred to the state
ments made by President McCrea of
the Pennsylvania and President Will
| lard of the B. & o. as declarations
of despair involving vicious circle
of ever-increasing freight rates and
ever-increasing cost of living"
Suggests Alternative.
Continuing, Mr.. Brandeis said: "As
an alternative to the practice of
combining to raise rates and hence
to increase prices, we offer co-opera-
tion to reduce costs and hence to
lower prices. This can be done
through the introduction of scientific
management, resulting in greater eff
ficiency and greater economy IN oper-
alton In so saying we offer \ con-
structive policy OF management, not
personal criticism of those to whom
! the management OF railroads Is not
intrusted. This greater efficiency in
operation which will follow the intro
duction into railroads of scientific
management must result in cGono-
mics which will far more than COM
pensate for all recent or expected in
creases in wages and other ex-
penses."
Mr.. Brandeis said that through ex.
perts and otherwise the shippers
would show how scientific manage
ment when applied to the single op-
GRAFTON of leading car with pig iron
increased the performance Of tire in
dividual worker from 1919 to AZ
tons; when applied to coal shoveling,
1t doubled or trebled the performance
Of the shoveler.
"And finally" said Mr.. Brlndeis,
1--WE propose to show the huge field
for the application of scientific man
agement in American railroad opera
tion and the rich fruit in economies
and improved service which NAV be
expected to result, economies which
have been estimated as aggregsting
in amount more than a million dol.
lars day"
Mr.. Brandeis called to the witness
stand the officers of two "model
plants" and both told the commits
sion in detail how they got things
done in scientific manner. II. X.
Hathaway, vice president of the Ia
ber Manufacturing company of Phlla-
delphia, was one of the experts, and
James Mapes Dodge, chairman Of
the board of directors of the Link
Belt company was the other.
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