The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1911-01-12
Brandeis Lectures Rail
roads on Their Loose
Business Methods.
HIGHER RATES
ARE NOT NEEDED
Attorney for Shippers of Allan
tic Seaboard Tells How Oper-
ating Expenses Can Be Re
duced 20 Per Cent.--Either
This, He Says, or Gov
eminent Ownership.


contend that rates are ample. but that
the expense of operation Is excessive;
that wages are not too hisn, but that.
as the management is unscientitc la
Dor, material. equipment and plant fail
to give adequate results we plead for
the Introduction Of scientific mana ge-
ment. under which the railroads shall
get one hundred cents for every doll
lar expended
In opening his argument for the
shippers of the Atlantic seaboard. be-
tore the Interstate Commerce Com
mission to-day. Louis d. Brandets. OF
Boston, thus presented the fundamen-
tal reason, in his mind. why freight
rates should not be advanced as pro-
posed by the railways.
Mr.. Brandcis declared that no rail
way company operating in official
classification territory had introduced
INTO any OF its departments the prin-
ciples of scientific management He
believed that these principles were
properly as applicable to railroads as
10 any other Industrial enterprise
Co-Operntfon Needed.
If there were cooperation among
the roads the highest measure OF ef-
iiciency could be obtained. and the saw
Ing OF per cent. of the aggregate cost,
or even far more than per cent, read
ily could be obtained. he said
Cooperation also, IN Mr.. Rrandeis's
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 Of
fort was being made by the railroads
10 obtain reduction Of the price OF
steel rails because of the financial con-
nections Of railroad officials with the
Tour great steel companies which manu-
facture the rails
The economies which would result
81 all the railroads In the United
states introduced scientific manage
ment has been estimated at not less
than 100000 day said Mr.. Bran
deis This would result in reducing
the present operating cost of the rail-
roads an average OF 20 per cent"
Mr.. Brandeis then presented figures
TO indicate that this estimate was
moderate y saving of 20 per cent In
oficial classification. territory. alone
would amount to approximately $500
900 day of $4,000, 200 year; while
the proposed advances would yiold only
s2I .oo0.0 600 year.
MIR. Brandeis indicated the various
ways by which. In his opinion, the saw
Ing of $1,000 600 day to the American
railroads could be effected Some OF
the savings could be made in eouip
nent charges by the operation OF ma
chime and repair shops. III planning
before performing; in the standardiz-
ing of methods, material and euuip-
ment in Keeping accurate records OF
Industrial performances; and in the
paying of adequate rewards for indi-
vidual accomplishments.
he believed that saving OF $4,000
600 Il year could be made in the one
item of coal. his argument being that
there was enormous waste In fuel on
practically all lines
The Terminal Problem
In his belief, the terminal problem
was the greatest problem Of transport
lation now confronting the railroads.
he believed that al least SO per cent.
In the present terminal charges. now
agEre eating 100000, 900 year. could
nc saved through scientific manage
ment. such management would re.
duce delays In the handling 81 ship.
ments. and aside from ii reduction in
,he direct cost would be of enormous
Dencht 10 both railways and shippers
There is no department Of railroad
irg In which the tield OF oconom,
through more scientific. more efficient
management. is not broadly open.''I
said MIR. Rrandels. One million a day
seems moderate estimate OF the sa,
inSs possible"
Amid impressive silence. Mr. Bran
de!s concluded his argument with tho
declaration that the railroads of thu
country were confronted with the
greatest opportunity of their exist
ciice TO Increase the efficiency of their
labor. equipment and plants II the,
should embrace the opportunity. they
would make for themselves ana for
the shipping interests OF the country
and of the world. II they should not.
the result only could be. In response tn
an irresistible popular clamor and de-
mand. the government ownership of
railroads of the United states