South Bend news-times. (South Bend, Ind.) 1913-1938, 1921-10-25
FORD CRACKS
PRESENT WAY.
OF R. R. RULE.
Detroit Capitalist Explains
How He Would Run
Nations Roads.
TYPICAL FORD PROJECT
Would Get Rid of Parasites, -
Rolling Stock and Use
less Employees.

WASHINGTON, Oct. 24.-Henry
Ford, writing in the current mum
Der OF the official publication OF
the Chamber OF Commerce Of the
United States, tells how he would
run a big railroad. Mr.. Ford's op-
GRAFTON Of his own road, the Detroit,
Toledo and Ironton, has been the
subject OF much discussion among
railroad men and theh public.
First OF all, says Mr.. Ford, he
would get rid OF the individual
stakeholder, whom he considers a
parasite; then he would turn to
lighter rolling stock and fire the
useless employees, especially the law
yers."
Finance as it applies to railroads.
says Mr.. Ford, is a failure; and the
roads spend money uselessly in red
tape OF all sorts, particularly in ac-
counting.
The real purposes of a railroad -
Mr.. Ford writes, us to serve the
public. There is no reason 1t should
be diverted from that service and
set TO doing an entirely different
thing-putting money into the peck
cts Of stockholders who made no
contribution to the reads actual OPP
Grafton. In the end the public pays
these dividends. They are a tax on
the whole people.
There is a possible and practical
BILE system of financing railroads by
which those contributing the money
will be in positions to aid directly
to the success of the undertaking.
II the brakemen on a railroad owns
stock in 1t, he has an additional in
ducement to competent service. If
the railroad is a success. it is due
TO him, and his fellow workmen, and
they are entitled TO the profit.
Should Not Go TO Banks.
Railroads should not have to go
TO banks for money. They can be
otherwise financed. The first thing
is to make a railroad work. Make
1t possible for people 10 use 1t as
much as they 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. Finance can't do that.
Finance is a failure.
"Of course, if such a course were
attempted, we could expect a great
cutlery for the protection of invested
capital. 1t would be said that peO-
pie had bought these stocks for the
financial protection Of their famr-
lies, their children. Protection from
what? From the necessity of earn
ing their living.
Their 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. 1t should be possible
TO retire the parasite, the non
contributing stakeholder. and get
the ownership into the proper
hands.
After removing this dividend
drain, the second step would be to
remove the great physical burden
Of the railroads-needless weight of
it's rolling stock. A freight train is
several times the weight of the load
It carries. and passenger train is
20 times as heavy. The cost of pull
ling empty trains is needlessly large.
Contrast this with the effect recent
ly OF the bicycle which weighed 90
pounds and will carry a man who
weighs 200 pounds.
"On the Detroit. Toledo and Iron
ton. the old types Of engine and car
will be displaced with better types.
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