The Washington herald., 1918-03-27
IM'ADOO FIXES
PAY OF STAFF
Holland Discovers Value Of
Services of Rail
way Men.


calls for $4,000 a year payment for
each. come further hints that Mr..
McAdoo will in due time and as
speedily as he can get at the mat
ter, undertake greatly to reduce
salaries now paid the railroad Of
ficers and. IL it be possible, to elm
mate some of the Offices. The sus-
picion has been strong that in some
cases favoritism, family prestige or
pull, have been utilized to place at
a desk in railroad Offices at an ex-
celIent salary someone who Is really
nothing more than a parasite. This
Is not true of the operating de-
partments of the railroads Of the
United States. Possibly it may be
to some extent true of some OF the
other Departments For in these
DAYS of intense railroad activity II
has been found vital to employ in
the operating departments men who
have the ability. energy and ambi-
tion thoroughly well to meet the
responsibility that is placed upon
them.
Are Competent Operators
The report comes from Washing
ton that no one of the new stan
created by Mr.. McAdoo was re-
ceiying while in the employment OF
the railroads from which he came
to Mr.. McAdoo less than $4,000 a
year and one it Is believed was
paid at the rate of 100000 a year.
Each Of these men was a highly
competent railroad operator. Each
of-them was believed fully to earn
the salary paid to him and II they
are to be, for a time, in the serv-
ice of the government at 100000 q
year each, they are relinquishing
for patriotic purposes emoluments
of nearly twice that amount and in
one case more than double that
amount.
The great railroad leaders since
Commodore Vanderbilt's day have
always acted upon the principle that
, the labOrer is fully worthy OF his
hire. The commodore himself paid
large salaries for the time. but ex-
pected that the recipients of them
would by their service earn for the
company much more than their SAL
aries. At one time the commodore
discovered a station agent upon the
line of the Erie Railroad who had
attracted attention to himself by
his energy as well as skill in han
ding freight traffic. The commo-
dore believed that the man was
worth much more than he was then
getting.
He therefore called him into the
service of the New Central, fixing
the salary at S20.OOO a year. A few
weeks after this man had been in
stalled in the office OF traffic man
aCer he ventured to step into the
Commodore's Office and say to him
that there was a certain traffic
i ,lrr l.
Oped and that he was in doubt
about the best way to solve it
Clearly he wanted advice from the
Commodore. Instead of giving any
advice the Commodore said to him
what is the New York Central pay
ing you $4,000 a year for" and
the manager replied, that 1t was for
service as general director of the
freight movements. Thereupon the
Commodore said to him: you don't
suppose that 1 am going to earn
your salary for you do your and
the young man went away not max
ing any answer. but he solved the
problem himself correctly and not
again did he seek the Commodore's
advice or that of any one else in
the management of his department.
A few years later his services were
so valuable that promotion follow
ed until he became President James
Butler, and he received a salary
said to have been $4,000 a year, and
he earned every penny of it.
Worth Any Salary.
William II. VANDERBILT was greatly
impressed by the operating capacity
of Mr. Bliss, the executive head of
the Boston and Albany Railroad
Vanderbilt spoke with admiration Of
Mr.. Bliss achievement in building
a belt line around Boston and also
Of the model manner in which Mr..
Bliss operated the line between
Albany and Boston, securing for 1t
great and profitable business.
Therefore Mr.. Vanderbilt decided that
il would not be a question of salary.
but of willingness on Mr.. Bliss part
IL the New York Central could
secure him as one Of the chief operat-
ing heads. He would gladly have paid
Mr.. Bliss $4,000 But no salary would
have tempted Mr.. Bliss to give up the
Boston and Albany because that was
4 sort Of pet with him.
Jay Gould firmly believed that the
laborer was worthy of his hire. He
was generous, even munificent, in the
payment Of salaries. looking only to
results. II the recipient more than
earned his salary Mr.. Gould was con-
tent On the other hand IL the salary
was not earned Mr.. Gould knew how
to part with the employe. So also
f. II. Hartman never stinted sal
aries, but he expected that service
rendered would be a fair return for
the salary paid and that the invest
ment OF a large salary in payment
for highly adequate service was an
excellent investment for the Union
Pacific. James J. Hill followed the
same rule. 1t is not a question of
whether $4,000 or 5000 Is or is not
an excessive salary for any man to
earn but the issue is simply this:
Can a railway officer earn for his
government sufficient gains to JUS
tify the payment to him of a large
salary.
The Other Way.
Sometimes it has happened that
a disposition to economic takes
possession of those who control
large railroad systems. There has
been in recent years a conspicuous
ease of that kind. The operating
executives OF one OF the large sys-
tens of the United. States were
highly competent men. They knew
how to bring large business to the
road. They knew how to establish
real economy which did not degen-
crate into parsimony. Under a new
management, however, a desire
greatly to economic was made