The Detroit times., 1910-11-21
RA|LR0lDs I|I
MILLION 4 Dl|
He CLAIMS
Louis D. Brandeis, Before Intszu
Commerce Commission, II
New Attack and Prot
Against Raise in Freight
Wants Commissioners To Undsxl
Sweeping Investigation Of ~
ent Day Railroad Management.

"AoHiNGION, Nov. 2i.--Louix ~
Brandels. attorney. OF Boston. bexr
his attack upon American raflro
rates before the Interstate commarR
commission today. His position ~
ward the railroads is this:
Show us you are operating yo1,
INES as economically as possible. ~
ing the best possible service. befot
you raise your freight rates.
Brandeis will endeavor TO pergun 4
the interstate commerce commissio
to take that position. He haa vy14
nesses, the best efficiency experta 4 y
america, 10 testify that railroads II
day are wasting annually $3OO,0O0. ecu
NEARLY $1,000,000 per day--nearI1
three timeS the total annual gold prfi
duction OF the United States) oveio
penny o. which Is contributed by tI1|
people. ss n IA
1t Is an attack from new quartof
as unexpected by the railroad preGI
dents as It is unwelcome. #
Brandeis claims railroad waste q
money is fragrant; that once the ro6<
approached efficiency. but that WA
the days OF competition, when parn1It
lines cut rates against them, and thf
had to keep their operating organlx
ton ON its toes or fail.
Fer ten years there has been IN
real competition. Road managomo6
mas gone to seed In that time. Otho1
(competing) corporations, have ava11
ed themselves of new discoveries n
economical management. The mo-
opolistic railroads are still clinging
the obsolete, wasteful methods of ~
bygone generation.
In the commissions hearing ron
today are dozen of the couutry
foremost representatives Of that me-
science-business engineering. Anon
them are Harrington Emerson, who
book on Efficiency is the standnt
IN America, and II. L. CAN'T. who
book. Works. Wages and Prufts'|
the epitome of the new efficiency ~
trine ,&
These men are here to bear
| BraMdeis' charge OF railruAd
They will point out to the railrox
presidents at the hearing just whSf
| the money is being wasted ThGr
are no specific charges of graft made
though the hoped-for Investigation o.
railroad business methods Brandof9
is asking for may reveal wholesale
graft, just as such an investigoti0m'
did recently in an Illinois railroad. n
Opposed to these experts are SUCK
men as President McCrea of the Penxk
sylvania railroad, who, at the hearinG4
q month ago before the recess, denie&
that his or other railroads are tuG13
ficient His opinion, he testified. restk
cd entirely upon his faith in his organ
ization. He confessed he had nQ
definite way of knowing whether ht4
organization is honest and efficient,
The rate hearings, were resumed
today after months recess. The
eastern and central railroads are ask
ing permission % raise rates, Those
are the same raises whose publications
last spring created such public COM
motion. They were stopped by an in;
junction in St Louis. after which the.
eastern presidents. In a conferences.
with TAFT agreed not to put the raises
into effect until the commences com
mission should pass upon the merits
of the case. Brandeis is attorney for
the eastern shippers association, con-.
testing the raises.
The railroads put in their case 6e-i
fore the recess They presented the
creased expenses. largely due TO the
general increases in wages granted
railway employees last April.
The railroads revealed their oper.y
atinC expenses to show the necessity
for rate raises. Brandeis has departs
cd from custom by not contesting the
figures. He takes them as bona NOE.
but is trying to point out by these
same figures that the roads are WASH,
ing the money they squeeze from the
people by high rates. He has the ex-'
perts here tn help him.
Increased efficiency. and its conse-:
uuent saving OF money, does not mean
lower wages or increased work inE
employees. Brandeis asserts On tnS
contrary, under perfect emcieuc{s|
wages wouid oe much higher. WORK
would bc no harder (but directed moF0
intelligently). and, with the saving p
the 5000 100000 now wasted, tnerr'
could be tremendous cuts IN fresxht
and passenger rates.
The railroads are not getting do'-
lars worth OF work for each dosiaS
oeid out by them. but this Is not tns
rault of the workers N is the NtN
of the improper tools they have 20
work with, the improper ms.s'1 q
furnished them. the lack OF sys.ep, -
s,,ruisbiny reouisit ons OF tools ana
matarials- the inefficiency OF manage-
80 thot sends out trains too h9u<.'
-. t,,ons cara on sdetracks or en-:
oires in rouud-houses too long. ana
sanrs 90 other inefTiciencies That mean 4
! wasted money. ,s,,,. ,,,es,.
,;arcv that keeps the cost or nvsn'
~ ,e" ana The common mans pockesoook
e ep on il will require an exnans 1 ~,
empS; investigation OF present.
so,irdod management Brandeis $500
t tSe Commission 70 . naSsssshs s Ut sss
Nesusa,o railroads are no IuuIQ<
SINCE sn concerns. the cumm1o(
co con 49, experts should go .inec
auu of their costs. should go
ins.o' ,he standard cost Of mu
inar.t,ons under 100 per cent
opsa~ and then should publish ~
81 standard costs for al the railt~