New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1918-04-06
Place of Railway
CEaairr11ez2 Under
Federal Operation
Unified Control Likely to
Reduce Vastness of Trans
portation Omcialdom
Especial Correspondence I

CHICAGO, April 5.-Crera ton of the
railroads by the government has chal-
lcnged every factor in the transporta-
tion business. The utility Of every
! Office and arrangement is being ques-
toned. The discussion of a wholesale
elimination of chairmen of the boards
of the various roads is typical of this
new attitude. Speculation about the
chairmen recalls to mind in striking
fashion the fact that railroad official
dom has been topheavy for several
years.
1t is we'll to remember that these
board chairnen IN their present capac-
ity and jurisdiction are evclutions from
nominal officials. There was time
when a director of company was
elected chairman for the meeting at
hand and then was forgotten until the
next session.
Harriman's System
In the era of concentration which
started and reached it's height under
the late E. H. Hartman the system of
absentee landlordism in the operation
Of railroads was highly developed.
This meant the punching of all rail
road policy directorates in New York.
Hartman himself acted as chairman of
several of his boards, and in many cases
assumed the title of president
This trend was followed nv owners
OF other big systems, who made the
office of chairmen of boards Of directors
active, important jobs. Instead of being
one Of the largest individual stock
holders or one CT the big owners, these
chairmsnships came to be filled by
hired cx-prcsidcnts Of the road. One
after another railway systems elevated
their presidents and sent them to New
York, where, with fuller knowledge of
their roads than Eastern stockholders,
they were enabled to be in touch with
the majority security holders and still
direct the operation of the roads. From
no salaries or nominal ones of the old
days these chairmenships were saddled
with emoluments reaching in many
cases $4,000 a year, according to the
system, connection and calibre of the
men.
For the last ten years the presi-
dency Of a railroad, particularly of the
Western lines, has amounted to little,
so far as policy jurisdiction was con-
cerncd. These presidents became
merely operators, recommending or
suggesting matters of policy to the
chairmen of the boards of directors.
This system has been convenient
from a Wall Street viewpoint, but it
is doubtful whether it has been in the
best interest of the properties, for the
reason that it meant absentee land
lordism in the operation of a railroad,
and this in turn meant a prejudiced
community, which certainly can do a
corporation no good.
There is no specific evidence, how
ever, whore the new order of things
had to date really and directly ma
terlally hurt railroad earnings, and it
will probably cut little figure whether
the railroad boards have chairmen. ex-
pensive or otherwise.
Efficiency the Test
Hartman started a system of en-
larglng the number of titled officers.
Before this new style of railroad was
instituted there was one president and
one vlcc-presidcnt, general passenger
agent, general freight agent, with a /
general manager and a superintendent. |
Now some roads have five or six vice
presidents. each with particular line
Of work, that formerly was handled by
one man with no difference in thu
mileage. General freight agents wer,
succeeded by freight traffic managers.
general passenger agents, passenger
tratflc managers, most of the time
with no additional duties or work. but
merely an increase in the payrolls.
These things have grown far beyond
me point of efficiency and there is no
aenying some pruning process might
De ADVISABLE, so long as it is not done
for political reasons.