New-York tribune., 1921-10-25
Ford Would Aid
Rails by Oustingg
Stockholders
Roads Should Be Run for
Service to Public, Not
Dividends, He Contends
in Trade Paper Article
Rolling Stock Too Heavy
Advocates Elimination of
All Useless Employees,
and Especially Lawyers


Ford, writing in the current of the
official publication of the Chamber OF
Commerce of the United States, tells
now he would run L big railroad. Mr.
ford's operation of his own road, the
Detroit, Toledo G. Ironton, has been the
subject of much discussion among
railroad men and the public.
First OF all, says Mr. Ford, he would
get rid of the individual stockholder
whom he considers a parasite; then he
would turn to lighter rolling stock and
finally, fire the useless employees
especially the lawyers"
Finance as it applies to railroads
says Mr.. Ford, is failure: and the
roads spend money uselessly in red
tape of all sorts, particularly in ac-
counting.
:. "The real purpose of railroad,
Mr. Ford writes. "is to serve the pub
lie. There is no reason why it should
be diverted from that service and set
to doing an entirely different thing
stockholders, who make no contribu-
tion. to the roads actual operation
In the end the public pays these divi-
dends. They are tax on the whole
people.
Employees Interest Suggested
There is a possible and practicable
system of financing railroads by which
those contributing the money will be
IN position to aid directly to the
success of the undertaking. If the
brakeman on a railroad owns stock in
1t he has an additional inducement to
competent service. If the railroad is
a success it is due to him and his
tellow workmen, and they are entitled
to the profit.
Railroads should not have to 90 to
banks for money. They can be other.
wise financed. The first thing ;s to
make a railroad work. Make it possible
for people to use it as much as thew
want to. Then there will be no trouble
ABOUT finances. The trouble IS that we
start with finance and expect finance
to make the road go. Finance can't dc
that. Finance is a failure.
"Of course, if sucn a course were
attempted we could expect a great out.
cry Tor the protection of invested caui.
tai. 1t would be- said that people haG
bought these stocks fer the financial
protection of their families, their chill
necessity of earning their living. Thei,
children would be better off if they
had to finance themselves.
Proper financing would, of course. be
easier On new roads. On the old ones
however, it should be possible to retire
the parasite, the non-contributino
holder, and get the ownership into
the proper hands.
Compares Transit to BICYCLES
after removing this dividend drair
the second step would be to remove
the great physical burden of the rail.
roads-the needless weight of its roll.
ing stock. A freight train is several
times the weight of the load it carries
and a passenger train is twenty times
as heavy. The cost of pulling empty
trains is needlessly large Contras,
this with the efficiency of the bicycle
which weighs II pounds and will carry
man who weighs 200 pounds.
"On the Detroit, Toledo & Irontor
the old types of engine and car will
be displaced by better types. on,
patents will guarantee the free use OF
ideas. We will never proceed against
anybody for infringement of ou,
patents. They will belong to the world
The third step. an immediate ster
which should be taken in the opera
tion Of any great railroad system
would be that of expediting the iourneN
Of the freight carrier. By speeding
up our freight over the preliminary
part of its journey on the D., T. 6. /
we have been able to shorten the time
of its delivery by periods ranging from
seven to fourteen days. This means
that our product gets to the people tc
whom we sell it from seven to fourteen
days quicker than it used to. 1t means
that We carry on our books $1,000 OOC
less undelivered product than we other
wise would.
Would Dust All Lawyers
"Most railroads have enough lawyers
working for them to operate them if
they were engaged in useful work
One of the first things is to dispense
with the legal staff. A we'll managed
road needs less of that sort of service
The lawyers are mostly in the claim
department, which is one of the mos,
wasteful branches of railroad opera
ton. Any small claim against a rail.
road is very likely to knock about the
claims department for weeks OF
months, to cost many times as much
as it would to pay it. Proper organi
zaton would lead, at the time it i:
first presented, to establishing the fact!
about it and settling it on the basi: