Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1910-11-21
BRANDE|S AssAILS
MANAGEMENT Of
RAILROAD LINES
Declares Freight Rates Are Suf-
ticient to Show Profits I'M
der Competent Control.

WASHINGTON, Nov. 21.-The open
counsel for the traffic committee Of the
commercial organizations of the At
lantic seaboard, told the story of the
alleged injustice of the suspended rate
advances when the Interstate Com
merce Commission today resumed its
hearing of the subject of the increases
proposed by the Eastern trunk lines
Mr.. Brandeis had man. witnesses ready
to take the stand to testify concerning
the conditions In the East, n this
testimony was arranged Immediately TO
follow his statement.
Mr.. Brandeis declared that the pro-
posed rate increases were neither just
nor reasonable IN the greater eff
cheney would yield greater income to
the railroads. He contended for scien-
tific management of the roads. and said
the railroads should cooperate to re-
duce costs instead of combining to in
crease rates. He described what he
said was the huge field for the applica-
ton Of scientific management and the
rich fruit In economies and improved
service which may be expected to re-
suit, economies which have been esti-
mated as aggregating more than a mil
lion dollars q day.
Scientific Management.
lie stated that scientific manage
ment demands preparedness and de-
tailed analytical study; that both en-
ployer and employee gain. and that It
does not involve capital expenditures.
While he promised evidence that huge
economies in railroad operation are
possible, he said that the pending in
crease in freight rates should not be
approved until the subject should have
been further and more fully investi-
gated by the Interstate Commerce
Commission on its wi initiative. He
urged such an independent investiga-
ton because much valuable evidence
| will be available to the commission
which is not available to h shippers,
including some experiments in scien-
tific management by the roads.
He combatted the railroad contention
that a new source of net income
through increased freight rates must
be found, and submitted no such need
has been shown to exist. In instances
NAC 0aSAA oSt4a4 AikOo Aio eRkN
said, 1t has resulted not from the fact
that present rates are too low. but
that the management has, through
reckless expansion OF other waste and
through financial inefficiency, impaired
the financial condition of the roads.
and that burdens so arising should be
borne by the stockholders through re-
duction of dividends and not by ship
pers and consumers through increases
in freight rates.
Answers Railroad Heads.
Mr.. Brandeis referred especially to
the testimony of Presidents McCrea, Of
the Pennsylvania; Willard. of the Bal
timore and Ohio. and Brown, of the
New York Central. and vice-President
Stuart, of the Erie. He tool issue with
the railroad contentious. which he
summed up thus:
That a greater net income is neces-
sary to maintain or properly increase
present dividends and certain additions
and improvements should be made from
surplus income, as the ratio of operat-
ing expenses to gross operating reve-
nues has risen monthly mainly through
wage advances and burdens by Con-
gress. such as laws providing safety
appliances. limiting hours of labor n
standardizing railroad accounting.
That the possibilities of economies,
at least for the leading railroads, have
been practically exhausted, and that
the proposed increases, confined prin-
cipally to horizontal increases of long
distance class rates. are the proper
means of raising additional net in
come"