New-York tribune., 1911-01-12
FREIGHT RATE HEARINGS
Brandeis Charges Railways with
Unscientific Management.

| washington. Jan. live contend that
rates are ample, but that the expense OF
| operation is excessive; that wages are not
! TOO high. but that. as the management is
unscientifc. labor material. equipment and
nlant fan 10 give adequate results. We
/ Mead for the introduction OF scientific man
agernent. under which the railroads shall
GO, 100 cents for every dollar expended"
/ In opening his argument for the shippers
! Of the Atlantic seaboard. before the Inter
I state Commerce Commission, to-day, Louis
| D. Brandeis. OF Boston, thus presented the
fundamental reason. in his mind. why
! freight rates should not be advanced, as
proposed by the railways.
Mr. Brandes declared that no railway
company operating in official classification
territory had introduced into any Of it's de-
partments the principles OF scientific man
agement He believed that these principles
we're properly as applicable TO railroads as
to any other industrial enterprise.
Mr.. Brandeis pointed out that no actual
cooperation existed among the roads with
a view 90 reducing the cost OF any par
ticular operation. Particular work was
done BY one road at less cost than 1t was
done by any other road, because, perhaps.
OF the efficiency Of the men directing the
operation. II there were cooperation
among tho roads the highest measure OF
efficiency could he obtained
Cooperation, Also in Mr. Brandels 5
opinion, would secure reductions IN the cost
of steel rails. in the price cf which. he he
Iieves, an enormous saving could he made.
"The four steel companies" said Mr..
Brandeis. have altogether sixty-fve di-
rectors Forty Of these sixty-hve are di-
rectors, In the aggregate, in ffty-two rail-
roads. including the most important sys-
tens Is II a wonder that the railroads did
not direct their combinations to secure a
reduction in the price Of steel?
The economies which would result II all
the railroads i'm the United states intro
duced scientific management have been esti-
mated at not less than 100000 a day. This
would result In reducing the present oper
sting cost Of the railroads an average oI
! 20 per cent"
! Mr. Brandeis then presented figures r
/ indicate that this estimate was moderate
/ A saving OF % per cent I'm official classif
! cation territory alone would amount 10 ap
proxmately 100000 day, or SlS0.Wc,0o Z
year, while the proposed advances woulC
Yield only s27.cO100o a year.
Mr. Brandeis showed By statistics Of vari
Gus Western railroads how not only ma
terial savings but very large savings haC
been effected in the last half dozen years
! He believed that a saving Of SN'0S'VN
year could be made in the one item Of coal
his argument being that there was cnor
. ,,,o,s waste I'm fuel on practically all lines
In his belief the terminal problem va
| the greatest problem Of transportation nov
confronting the railroads While the cos
Of handling freight at great and expensive
terminals had been reduced during the las
/ fifteen years. 1t still was greatly IN eXces
! Of what il ought TO be He believed ina
at least 90 per cent in tho present termina
charges. now aggregating So0,ooO@ a year
could be saved through scientific manage
] ment,