New-York tribune., 1910-11-23
EFFICIENCY AND EC0NoMY.


It was a bold line of argument for
Mr. Brandeis, counsel for the shippers
before the Interstate Commerce Com
mission. TO take in opposing the freight
rate increases on the ground that the
railroads should look 10 increased econo-
mics for increased profits. and urging
upon the attention of the commission
that modern industrial development
known as efficiency engineering. Prob
ably the subject is too new and the be
lief that successful business managers
need no advice in regard TO efficiency
is too firmly established for the argu-
ment Of Mr.. Brandeis to carry great
weight. But whatever the possibility Of
scientific" business management may
be- II is only through new economies
that there can be any escape from the
vicious circle of higher rates to meet
higher wages and higher costs. followed
inevitably by still higher costs in re-
sponse to the higher rates. Increases
in freight rates and wages have their
effect in raising the price of commOdi-
ties. and the advance in price OF these
isbtblEltS al new Itd>bLi 1pA LfAAS1Iie~ NtteCo
and freight rates. From this logic there
is no escape. except to hope for some
deus cr mGchiHG of political economy
to put an end to the process.
Railroad men are said TO have been
interested bv Mr. Brandeiss argument
and by the witnesses he called. and the
so-ca1led efficiency engineers do point TO
wi. y oH
is to study complicated manual opera
tions and the details of shop organiza
ton. 10 standardize them. cut out un-
necessary movements, bitches and de
lays between various processes. adapt
sliding scale Of wages TO the results
achieved by workmen and thus elimi-
nate waste and increase product. These
general terms probably convey little COLI
ceptiOn of what scientific management
actually does. Perhaps a few words rs
Ia its application TO bricklaying will
illustrate il better than any definition
could. An efficiency engineer, studying
this old trade, decided that for the
bricklayeT TO stoop to pick up his bricks
to have 10 sort them over, reject the
side up. and then 10 be compelled to tap
the brick III order 10 make it settle
properly in mortar. was all labor which
it was unnecessary to pay for at the rate
of So day. Mechanical devices. the
assistance Of boys and the mixing of
mortar TO exactly the right consistency
eliminating this unnecessary work On
the nart of the bricklayer. his efficiency
was increased 300 Per cent. an increase
to which he had no objection. as 1t
brought. under sliding scale Of wages,
81 So additional daily pay. The eff
cheney engineer is not unknown in rail
road work. BY the use of his methods
in one railroad repair shop the output
is said TO have increased in six years
from 47.25O units 10 57,T777, while the
expense fell from S4S7.171 TO 223.--l41. Il
decline in unit cost from S01O31 to
S0.O373.
On the face Of the figures it is evi
dent. as might be expected. that the
efficiency Of railroad management
varies. In this matter of locomotive re-
pairs certain Of the best conducted lines
of the West which enjoy q nationwide
reputation for successful management.
keep the cost OF engine repairs below
G cents a mile 4 year. On some roads
this cost runs up TO II cents. Mr. Har-
rineton Emerson. one of Mr.. Brandeis's
witnesses. we believe. and an authority
on efficiency engineering, puts the pre-
ventable waste on American railroads
NJ $500. 100000 The subject is not one
for Il newspaper TO pronounce judgment
on. but its presentation at this time and
under these circumstances can hardly
fail TO SET the railroads and business
men generally TO thinking