The Detroit times., 1911-01-03
RAILROADS SHOULD
RAISE EFFICIENCY
LOUIS ID. BRANDEIs.
Boston Man Asserts Proper Manage
ment Would Result in Saving
Of 100000 Daily.
Louis ID. BRANDEIS.

WASHINGTON, Jan. 3-Higher
standards of efficiency. not increased
freight charges, are the paramount
needs today OF American railways.
This proposition is the essence OF
the brief filed yesterday with the inter
state commerce commission by Louis
ID. Brandeis. or Boston, counsel for
the traffic committee of commercial
organizations of the Atlantic Sea
board, in the investigation by the COM
mission of the proposed advances in
freight rates by carriers in official
classification territory, that part of
the country east of the Mississippi and
north of the Ohio and Potomac rivers.
Railroad manaers, Mr.. Brandeis
contends. in an effort TO meet existing
needs should not look without, but
within.
IF their net income is insufficient"
he says, the proper remedy is not
higher rates resulting in higher costs
and lessened business. but scientific
management, resulting In lower costs.
in higher wages and increased bust
ness. If their credit is impaired, the
proper remedy is not TO apply the
delusive stimulant of higher rates, but
10 strengthen their organizations by
introducing advanced methods and
eliminating questionable practices.
Thus they will maintain credit by
deserving II"
The proposed advances in freight
charges by the lines in official classi.
fication territory would affect only the
class rates The total freight ton
mage OF the lines for the calendar
year 1909 was 626,321, 975. or this ton
mage less than eight per cent moved
under class rates, yet of the freight
revenues of these railroads for the
calendar year 1909, nearly % per cent
C105, 271,S23) was derived from class
rates These rates govern =" the ship
ment Of over 1000 articles OF com
merce. including most OF the necessi
ties OF life and articles OF competitive
commerce. The proposed increases
vary from eight per cent to 20 per
cent. averaging approximately l6 per
cent.
Mr. Brandeis indicates tat he con-
siders the great question involved in
the investigation TO be the statement
OF President Willard, of the Baltimore
N
will be to continue upward that is,
that there will be a progressive in
crease in rates.
LAS an alternative to the railroads
practice of combining to increase
rates." suggests Mr.. Brandeis. I'VE
offer cooperation TO reduce costs. In.
stead OF dangerous makeshlft, we
offer a constructive policy-scientific
management. under which, as costs
fall. wages rise
The consumer, he points out, should
beware of the vicious circles OF ever
increasing freight rates and ever-in-
creasing cost of living
The law places the burden OF proof
OF the reasonableness OF the proposed
advances on the railroads. Mr.. Bran
deis maintains that the roads have
failed utterly to sustain their burden
OF proof: have failed so completely
that the application of the railroads
for approval OF the new tariff should
be denied
In a discussion Of scientific man
agement." il is maintained that the
contention OF the railways that the
possibilities of economy in railroading
ldNt UttH III dNliNdllN CAhdu9Ath 10
contrary to all human experience In
other lines of activity. Advances I'm
the art of transportation have been
relatively few and some OF these
have been forced by law against siren.
nous opposition.
Il is indicated that scientific man.
agement demands the separation OF
planning from performing; changes
the relations OF the management TO
labor: demands preparedness, analy-
tical study. records of industrial per.
| Torrance and standardized methods
and equipment. II increases the eff
clancy of the Individual, OF the plant
and equipment and of material. II
also increases the emoluments OF bCi.
capital and labor. II eliminates E, -
too in the opinion OF Mr. Brandels, in
The purchase Of supplies