Democratic messenger. [volume] (Snow Hill, Md.) 1869-1973, 1911-01-14
RAIL WAY HAND IN
BIG STEEL PLANTS
Brandels Tells Why Prices Of
Rails Are High.
SHOULD PRACTICE ECONOMY
Says Forty Out Of sixty.fve In Steel
Companies Are Directors In Fifty
two Railroads.


Companies Are Directors In Fifty
two Railroads.
Financial connections of officials Of
important railroads with the four big
companies manufacturing steel rails
were declared In Washington by Louis
ID. Brandeis TO be responsible for a
great part of the excessive cost OF op.
Grafton by the railroads.
Mr.. Brandeis. as counsel for the
shippers OF the Atlantic seaboard,
opened his argument before the inter.
state commerce commission In opposi.
ton to the proposed increase in rates
by the lines in the official classification
territory, and he cited both steel rails
and coal as two of the things on
which the railroads could and should
economize.
In connection with his discussion Of
the question of steel rails he said:
These four steel companies have
altogether sixty.hve directors. Forty
of these sixty-five are directors. In the
aggregate. in fifty.two railroads, in
Guiding the most important systems
Is it wonder that the railroads did
not direct their combinations to OBJ
tain a reduction In the price OF steel?
"If 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 huge saving"
Incidentally, he pointed out. under
the proposed freight tariffs. these
steel products were carefully exclud
ed. No increase is proposed on the
other steel products covred by com
modify rates"
Mr.. Brandeis declared that no rail
way company operating in official elias
siflcation territory had introduced into
any OF its departments the principles
Of scientific management. Attention
road officials that the proposed ad
vance would contribute to the operat
ing income OF the railroads In the
eastern territory only $27.000.000.
This sum-" said Mr.. Brandeis. rs
little more than per cent OF the ag
gregate operating expenses of these
railroads for the fiscal year. 1t cannot
be seriously doubted that ii deter
mined cooperative effort were made by
these railroads to reduce their operat
ing costs, II would be found possible
TO effect saving of per cent ever
~ n -
ment."
Particular work was done by one
road at a less cost than II was done
by any other road. he said, because
perhaps. OF the efficiency of the mer
directing the operation; Ii there were
cooperation among the roads the high
est measure of efficiency could be OBJ
tanned and the saving of per cent
or even far more. readily could be OBJ
tanned.
THE economies which would result
| ii all the railroads in the United State:
introduced scientific management" hi
| added, has been estimated at not less
than $l.000.000 a day. This would re
| suit in reducing the present operating
cost of the railroads an average OF q
per cent
Mr.. Brandeis presented figures to in
dictate that this estimate was moder
ate. A saving of 20 per cent in ofiicia
classification territory alone woult
amount to approximately 100000 4
day. or $1S0OOO.OOO a year.
He believed that saving of $50.
100000 year could be made in the
one item OF coal his argument being
that there was enormous waste in fue
| on practically oil lina0