Kingsbury County independent. (DeSmet, Kingsbury County, S.D.) 1894-1929, 1911-01-20
ARGUES
AGAINST INCREASE
IN FREIGHT RATES
Otter Lack of Scientific Super
vision, He Declares, Exists
on the Part of the
Carriers.

Washington, Jan. Tive contend
that rates are ample, but that the
expenses of operation are excessive;
that wages are not too high. but that.
as the management is unscieutific, Ia
Dor, material, equipment and plant TAIL
to give adequate results. we plead
for the introduction of scientific man
| agement, under which the railroads
shall get 100 cents for every dollar ex-
pended"
In opening his argument for the
shippers of the Atlantic seaboard be-
fore the Interstate Commerce commits
ton, thus presented the fundamental
reason, In his mind, why freight rates
should not be advanced as proposed by
the railways.
No Scientific Management.
Mr.. Brandeis declared hat no rail-
way operating in official
classification territory a introduced
INTO any of it's departments the prin-
eiples of scientific management. He
believed these principles were as prop
srly applicable to railroads as to any
sther Industrial enterprise.
Attention was directed to the state
nent of the railroad officials that the
proposed freight advance would con-
tribute to the operating income of the
railroads in the eastern territory only
s27, 900, 600.
'"This sum-" said Mr.. Brandeis, lis
little more than 3 per cent of the ag-
gregate operating expenses of these
railroads. 1t cannot be seriously doubt
I'd that IL q determined cooperative ef-
,ort were made by these railroads to
reduce the operating cost, 1t would be
,ound possible to effect a saving of
F. per cent even without the aid OF
scientific management
He pointed out that no actual CO.
operation existed among the railroads
With a view to reducing the cost OF
any particular operation. If there were
cooperation among the a the high
Est measure of efficiency could be OBJ
,ained and the saving of 8 per cent of
he aggregate cost, or even far more
han 8 per cent, readily could be OBJ
tanned, he said.
Could Reduce Rai! ccst
Cooperation, also, in Mr.. Brandeis'
opinion, would secure reductions In
the cost OF steel rails, in the price OF
| which, he believes, an enormous saw
ing could be made.
1.-THE four great steel companies"
laid Mr.. Brandeis, have altogether IS
directors. Forty OF these sh are a;rac-
| tors, in the aggregate, in SO railroads,
| Including the most important systems.
Is 1t a wonder that the railroads did
aot direct their combinations TO Sc
sure a reduction In the price OF steel?
'The economies which would result
Il all the railroads in the United states
introduced scientific management has
+, been estimated at not less than ST.
700. 900 a day." he continued. This
would result in reducing the present
operating cost OF the railroads an av-
srage of 20 per cent.
Mr.. B-andeis Their presented figures
70 indicate hat this estimate was
moderate. A saving Of 20 per cent in
official classification territory also
would amount to approximately $780,
700 a day. or $3.50. Ooo,O 600 a year; while
the proposed advances would yield only
s27. 600 900 q
How Saving Is Possible
Mr.. Brandeis indicated the various
ways by which, in his opinion, the
saving of 81, 900, 900 a day TO the Amer
lean railroads could be effected. Some
Of the savings could be made In equip
nent changes, in the operation OF ma
,hine and repair shops, in planning be-
lore performing, in the standardization
II methods, material and equipment, in
keeping accurate records of industrial
performance and in the paying OF ade-
luate rewards for individual accom-
plishments.
He showed by statistics Of various
western railroads now very large saw
!ngs had been effected in the last half
dozen years. He believed hat a saw
ing of $50, 000. 900 a yea could be made
IA the one item or coal, his argument
being that there was enormous waste
in uel on practically all lines.
In Mr.. Brandeis' belief the terminal
question was the greatest problem of
transportation now confronting the
railroads. He believed that at least 33
npr cent ~ in the nraSant tarYnfnal
charges, now a~ggregating $500, 900, 900
a year, could be saved through scienti.
&c management.