Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1911-01-12
EXPLAINS HOW
ROADS CAN SAVE
Attorney Brandeis, Arguing
Against Rate Advance,
Talks to the Point.
TOO MUCH TRIBUTE PAID
Companies Virtually Betrayed by
Their Officers-Waste and EN-
travagance Everywhere.

I
| Washington. Jan. I'm opening
his arguments for the shippers of the
Atlantic seaboard before the interstate
commerce commission yesterday, Louis
D. Brandeis of Boston declared that no
railway company operating in official
classification territory had introduced
into any of its departments the prtnci-
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, 900, 900.
COULD SAVE Equal SUM.
This sum" said Mr. Brandeis. "is
! little more than per cent of the ag-
gregate operating expenses of these
railroads for the fiscal year. II cannot
| be seriously doubted that il a deter
mined. cooperative effort were made by
| these railroads to reduce the operating
costs it would be found possible 10 eff
feet a saving of per cent, even with
out the aid of scientific management.
He pointed out that no actual CO.
operation existed among the roads with
a view to reducing the cost of any
particular operation.
Cooperation, in Mr.. Brandeis' opin
| ion, woud 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 con-
nections of railroad officials with the
! four great steel companies which man
ufacture the rails.
| STEEL MEN RAILROADERs.
These four steel companies said
Mr.. Brandefs, "have altogether 65 di-
rectors. Forty of these So are direc-
tors i'm 50 railroads, including the most
import ant systems. Is il a wonder that
the railroads did not direct their com
binations 10 secure reduction in the
price of steel?"
Incidentally, he pointed out, under
the proposed freight tariffs, these |
steel products were carefully exclud- |
ed. No raise is proposed of the other /
steel products covered by commodity |
rates
SAVE MILLION 4 DAY,
THE economies which would result |
if all the railroads in the United States !
introduced scientific management has /
been estimated at not less than 81 .000.-
900 day." said Mr.. Brandeis. This |
woud result in reducing the present
operating cost of the railroads an aver
age of 20 per cent"
Mr.. Brandeis indicated the various
ways by which, in his opinion, the saw
ing of 81 100000 day could be effect
ed. Some of the savings could be /
made in the equipment charges, in the
operating of machine and repair shops,
in planning before the performing. in
the standardization of methods, mater
ial, and equipment; in keeping accur-
ate records of industrial performance,
for Individual accomplishments He
showed by statistics of various west
ern railroads how not only material
savings by large savings had been eff
fected in the last half dozen years.
SAVE MUCH on COAL.
He believed that a saving of $780, ,
100000 a year could be made in the I
one item of coal, his argument being q,
that there was enormous waste in fuel ,
on practically all lines. He suggested !
also that an increase in the working
efficiency of equipment, particularly :
locomotives, could be gained by a :
proper care of equipment.
In Mr.. Brandeis' belief the terminal !
problem was the greatest problem OF s
now confronting the 9
railroads. He believed that at least 80 ,
per cent in the present terminal charg-
es, now aggregating $500, ,OOO, 900 a 4
year, could be saved through scientific
BLAMEs STOCK WATERING.
In concluding his argument against
the proposed advance in rates Francis
B. James discussed the argument OF
he roads counsel that railroad secur-
ties were being affected seriously in
value by the roads inability to float
needed securities on account Of the
depreciation OF their percentages OF =
income. He declared that whatever :
rouble had arisen was due to the wa :
ering of stock and to bad railroad ad- :,
.