Evening star. [volume] (Washington, D.C.) 1854-1972, 1911-01-11

that the expense of operation is excessive;
that wages are not too high, but that. as
the management is unscientific, labor.
material. equipment and plant fail to
give adequate results. We plead for the
Introduction of scientific management,
under which the railroads shall get 100
cents for every dollar expended
In opening his argument for the ship
pers of the Atlantic seaboard before the
interstate commerce commission today
Louis d. Brandeis of Boston thus pre-
sented the fundamental reason, in his
mind. why freight rates should not be ad-
vanced as proposed by the railways.
Mr.. Brandeis declared that no railway
company operating in official classifica-
ton territory had introduced into any of
its departments the principles of scientific
management. He believed that these
principles were properly as applicable to
railroads as to any other industrial en-
terprise.
Revenue From Higher Rates.
Attention was directed to the statement
Of the raildoad officials that the proposed
freight advance would contribute to the
operating income of the railroads in the
eastern territory only s27,CO0.OoO.
This sum- said Mr.. Brandeis, lis lit
tie more than 3 per cent of the aggregate
operating expenses of these railroads for
the fiscal year. 1t cannot be seriously
doubted that If a determined cooperative
effort were made by these railroads to
reduce their operating costs it would be
found possible to effect a savisg of 3
per cent even without the aid of scientific
management.
lot pa6 ho pn
existed among the roads with a view to
reducing the cost of any particular opera
ton. Particular york was done by one
road at less cost than it was done by
any other road. because, perhaps, Of the
efficiency of the men directing the opera
tion. II there were cooperation among
the roads the highest measure of eff
cheney could be obtained anG the saving of
per cent Of the aggregate cost. or even
far more than 3 per cent. readily could
be obtained, he said.
Cost of Steel Rails.
Cooperation also, in Mr. Brandeis opin-
icn would secure reductions in the cost
Of steel rails, in the price of which, he
believes, an enormous saving could be
made. He suggested, however, that no
effort was being made by the railroads to
obtain a reduction Of the price of steel
rails because of the financial connection
of railroad officials with the four great
steel companies which manufacture the
rails.
These four steel companies said Mr..
Brandeis, have altogether sixty-five di-
rectors. Forty of these sixty-five are di-
rectors. in the aggregate. in fifty-two
railroads, including the most important
systems. Is 1t a wonder that the rail-
roads did not direct their combinations to
secure a reduction in the price of steel?
IL we could prevent the excessive prices
OF the steel rail combination as effectively
as Congress protected US from excessive
armor plate charges there would be a
huge saving
Incidentally he pointed out that. under
the proposed freight tariffs these steel
products were carefully excluded. No
ra ise is proposed of the other steel prod
ucts covered by commodity rates.
Might Save $1,000, 900 Day.
THE economies which would result II
all the railroads in the United States in
troduced scientific management has been
estimated at not less than a million dol
lars day. This would result in reducing
the present operating cost Of the railroads
an average OF 20 PEI cent
Mr.. Brandeis then presented figures to
indicate that this estimate was moderate.
A saving of 20 per cent in official classifi-
cation territory alone would amount to
approximately 100000 day, or $lSO,OOO.-
| 600 a year. while the proposed advances
would yield only 1000, ,OOO a year.
Mr.. Brandeis indicated the various ways
| by which, in his opinion, the saving OF
| 81 100000 day to the American railroads
could be effected. Some of the savings
could be made in equipment charges. In
| the operation of machine and repair
| shops: in planning before performing; In
| the standardiZing of methods, material
| and equipment; in keeping accurate rec
| ords Of industrial performance, and in the
payment of adequate rewards for individ
ual accomplishments. He showed by sta
tistics of various western ra lroads how
\ not only material savings but very large
| savings had been affected in the last hail
dozen years. He believed that a savins
| of SjO.O0OOOO year could be made in the
one item of coal. his argument being thai
! there was enormous waste in fuel OF
practically all lines.
He suggested also that an increase
/ In the working efficiency OF equipment
particularly Of locomotives, could be
| gained by a proper care Of the equip
ment. Such care, he said. not only
| would save money, but would save
lives. as ii would reduce the liability
/ OF locomotive boiler explosion. Much,
| too, could be saved In what he termet
] huge leak in loss and damage claims
The Terminal Problem.
/ In his belief, the terminal problem
! Continued on Second Page.l