The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1911-01-11
The Expense of Railroad Oper'
alton Is Too High.
Wages Not Too High, But Man
agement Is Unscientific.
EQUIPMENTAND PLANT
Fail to Give Adequate Results
Says Brandeis
In His Argument for Atlantic
Seaboard Shippers.

!
Washington, Jan. live contend
that rates are ample, but that the ex-
pense of operation is excessive; that
wages are not too high. but that as
the management is unscientific. 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 100 cents for every dollar ex-
pended"
In opening his arguments for the
Shippers OF the Atlantic seaboard be-
fore the interstate commerce commits
sion today. l.. D. Brandeis of Boston
thus presented the fundamental rea-
son, in his mind, why freight rates
should not De advanced as proposed by
the railroads. Mr.. Brandeis declared
that no railway company operating in
ofhc1al classification territory had in
troduced into any of its departments
the principles of scientific manage
ment He believes these principles
ROADS as to any other industrial en-
terprise
Attention was directed to the state
ment OF the railroad officials that pro-
posed freight advance would contrib
ute to the operating income of the
railroads in the eastern territory only
$27.0OO,0 900.
This sum- said Mr.. Brandeis. sis
little more than 3 per cent of the ag-
gregate, operating expenses of these
railroads. 1t can not be seriously
doubted that if determined, cooper
alive effort were made by these rail-
roads to reduce the operating costs it
would be found possible to effect a
saving OF ) per cent even without the
AID OF scientific management
Lack of Co Cooperation.
He pointed out that no actual CO.
operation existed among the roads with
view to reducing the cost of any par
tlcular operation. If there were CO.
operation among the roads the highest
measure of efficiency could be obtained
and the saving of per cent of the
aggregate cost, or even far more than
3 per cent. readily could be obtained.
he said.
Cooperation, also, in Mr. Brandeis'
opinion, would secure reductions in the
cost of steel rails, in the price of which
he believed an enormous saving could
be made
THE four great steel companies.
said Mr.. Brandeis, have altogether
sixty-five directors. Forty of the sixty
i've are directors, in the aggregate, IL
fifty-two railroads, including the most
important systems. Is it a wonder that
the railroads did not direct their COM,
missioners to secure a reduction in the
price of steel?
1.-The economies which would result
introduced scientific management has
been estimated at not less than a mi
lion dollars a day. he said. This
would result in reducing the present
operating cost of the railroads an aver
age of 20 per cent
How to Do 1t.
Mr.. Brandeis then presented figures
to indicate that this estimate was mod
crate. A saving of 20 per cent in Off
cial classification on territory alone
would amount to approximately $780,
900 a day or $1SO,000.000 year, while
the proposed advances would yield
only $27.000,000 a year. Mr.. Brandeis
indicated the various ways by which,
in his opinion, the saving of 100000
a day to the American railroads 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 standardization of methods,
material and equipment; in contem-
plating accurate records of industrial
performance and in the paying of ade-
quate rewards for individual accom-
plishments.
He showed by statistics of various
western roads how large savings had
been effected in the last half dozen
years. He believed that a saving of
$50, 100000 a year could be made in
the one item of coal, his argument be-
ing that there was enormous waste in
fuel on all lines. He suggested also
that an increase in the working eff
ficiency of equipment, particularly of
locomotives could be gained by a prop
er care of the equipment.
In Brandeis belief the terminal
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