Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1910-11-22
Contest Before Commerce Co
Over Proposed Increas,
ADVANCES ARE NOT JUS
Greater Net Income to Be Pro
by Modern Methods.
ONE WITNESS FOR RAILROADS.
president Ramsey OF Ann ArbOr Road
Asserts Increases Are Rendered
Necessary by Greater Cost
OF Operation.


the interstate Commerce commission over
the suspended increases in freight rates on
the eastern trunk lines. Their contention
was that the advances were not justified
ana that the real solution OF the problem
a. meeting q railroads need for greater net
income lay IN introduction OF scientific
principles IN management
This was the burden OF the whole days
proceeding. the only witness for the rail
roads being President Joseph Ramsey OF
the Ann ArbOr railroad the former head
of the Wabash system who defended the
proposed increases as vitaliy necessary IN !
view OF the Increased cost OF operation and
materials The hearing will continue
through the week and the commission will
not be prepared to decide the case. which
involves an Increased tariff on several
thousand articles OF traffic, until we'll into
next year.
Scientific Principle Advocated.
The shippers presentation OF their con-
tentlons Is in charge Of Louis d. Brandeis
Of Boston, representing the commercial or
Eanlaations OF the Atlantic seaboard, who
sprang his scientific principle" doctrine
N his statement OF the case at the outset Of
today's hearing His witnesses we're II. x.
Hathaway and James Mapes Dodge Of Phil
sdeiphia both heads OF big manufacturing
concerns.
Air. Brandeis elected from them that
under the application OF scientific prin-
cipies Of their business q notable gain had
accrued TO both their plants and their men,
o. Il. Butterfield, counsel for the New YORK
Central railroad, oross-examined these wit
nesses 10 attack the claim that the scien-
tific doctrine had actually brought about
any Improvement.
Mr. Hathaway testified that he Joined the
PHILADELPHIA concern IN t9N with the espe-
eial purpose OF installing the scientific idea
Ia the plant. and that since the change the
cost Of production there had been reduced
shout 80 per cent and the business was
erhnsferrad from 4osing 60 . pfofitael's
venture his testimony was largely de-
voted 20 q detailed description Of the
minute workings OF his system.
How does the output OF 1904 compare
with that OF today2' asked Mr.. BrRndeis.
eaeking to show the advantages of the
'scientnc system"
'sWe are producing two OF three times as
much" replied the witness.
Mr., Dodge testified the same system ex-
actly was Ia force in his plant. His slogan
was absolute fairness with the workmen.'
He said his company manufactured ma
chinery and that the plant turned out IS
Der cent Of it's orders time
Efficiency Is Doubled.
his eompany's manufacturing digestion was
very much better; that the company had
been able to eliminate the night work that
had existed before the change. and that
the efficiency OF his shop was double that
before the Inauguration Of scientific meth
DDS
Mr.. Dodge declared that any shop in tho
world, In a competitive business, that does
not vastly improve its methods over those
OF five years ago would have to go out Of
business today.
Tomorrow c. B. Burtsch, general traffic
manager OF Milwaukee brewing com
pany win state its side OF the shippers
ease on behalf OF the brewery men as well
as OF the furniture shippers at Grand Rap
ids. Mich.
William A. Glasgow. ir, of Philadelphia
filed a brief with the commission. compar-
ing acts OF congress and British railroad
legislation. He contended that under the
amended interstate commerce law the bur
den OF proof on the carrier could not he
discharged BY proof OF increased cost OF
operation of apprehended increased expen-
dtures. but that the carrier must show
that the rate was Just and reasonable for
tho service rendered. just as before the
act Of congress the complaining shippers
were required to show that the rate was
unjust and unreasonable for the service
rendered
Case ~ the shippers.
Mr. Brandeis' statement of the case Of
the shippers featured the session Mr..
Brandeis had many witnesses ready TO take
the stand TO testify concerning the condi-
lions In the east and this testimony was
arranged Immediately TO follow his state
ment Mr. Rrandeis declared that the pro-
posed rate increases were neither Just nor
reasonable and that greater, efficiency
would yield greater income 20 the rail
roads He contended FOR scientific man
Ngement OF the roads and said the rail-
roads should cooperate to reduce costs
Instead OF combining to increase rates.
Hs described what be said was the hug
field Tor the application OF scientific man
Rgement and the rich fruit In economies
and improved service which may be eN
pected 20 result In economies which haV'
5een estms ted as RgEregating more thai
.00Q.0o0 dollars q day.
he said scientific management demand
Preparedness and detailed analytical study
hat both employers and employees gain
and that Il does not involve capital eX
2enditures While he promised evidcnc
that huge economies I'm railroad operation
are possible he said the pending increas
m freight rates should not be approve
until tire subject should have been furthe
and more fully Investigated by the Inter
state Commerce commission on It's ow
Initiative
AAka Independent investigation.
He urged an independent invesugatio
because much verbal evidence will b
available 10 the commission which Is nc
available 20 shippers including some "a
periments in scientific managament by th
roads.
lie combatted the railroad contention ths
a new source % net Income through ir
creased freight rates must D. found an
Tunmitted; no such need has been shown
Commune "a sseena partl