Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1911-01-11
BRANDE|S TELLS
HOW He WOULD
SAVE R. R. MONEY
Protesting Against Freight Rate
Advance, Lawyer Pleads for.
Scientific Methods.

WASHINGTON, D. c., Jan. live
contend hat rates are ample, but that
the expense of operation is excessive;
that wages are not to high, but that, as
the MANAGEMENT Is unscientiic, labor,
material, equipment and plant fail to
give ADEQUATE results. We plead for
the introduction of scientific manage
ment, under which the railroads shall
get one hundred cents for every dollar
expended"
In opening his argument for the
shippers of the Atlantic Seaboard be-
fore the Interstate Commerce Commits
sion today, Louis D.. Brandeis, OF Bos-
ton, thus presented the fundamental
reason, In his mind, why freight rates
should not be advanced as proposed by
the railways.
Mr.. Brandeis declared that no rail-
way company operating in official
classification territory had. introduced
into any of its departments the princi-
pies of scientific management. He be-
lieved that these principles were prop
erly as applicable to railroads as to any
other industrial enterprise.
Attention was directed to the state
ment 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. 0OO. 900.
This sum-" said Mr.. B~randeis, us lit
tie more h a 3 per cent. of the aggre-
gate operating expenses of these rail-
roads for the fiscal year. 1t cannot be
seriously doubted that II a determined.
cooperative effort were mad by these
railroads to reduce their operating
costs, It would be found possible to
affect a saving of 8 per cent. even with
out the aid Of scientific management"
Finds No Cooperation.
He pointed out that the actual CO.
operation existed among the roads with
a view to reducing the cost of any par
ticular operation. Particular work
was lone by one road at a less cost
thar 1t was done by any other road,
because, perhaps OF the efficiency OF
the men directing the operation. II
there were cooperation among the roads
the highest measur OF efficiency could
be obtained and the sewing of 8 per
cent. of the aggregate cost, or even far
more than 8 per cent. readily could be
obtained. he said.
Cooperation, also, in Mr.. Brardeiss
opinion, 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 rail-
roads to obtain q reduction of the price
of steel rails, because of the financial
connections of railroad officials with
the four great steel companies which
manufacture the rails.
1.-THE economies which would result
IL all the railroads in the United States
introduced scientific management has
been estimated at not less than q
million dollars a day. This would re-
suit in reducing the present operating
cost of the railroads an average of %
per cent" said Mr.. Brandeis, who then
presented figures to Indicate that this
estimate was moderate.
Mr.. Brandeis indicated the various
ways by which, In his opinion, the saw
ing of one million dollars n day to the
American railroad 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 standardizins
Of methods, material and equipment;
IN keeping accurate records of indus
trial performance and In the paying
OF adequate rewards for Individual &C.
complishments.