The Birmingham age-herald., 1921-08-16
By HOLLAND


 New York, August )--
 Henry Ford is reported to have brought about such efficiency in the operation of the Detroit, Toledo and Ironton Railroad company of which he or his corporation is the owner as to have eliminated the deficit and secure an operating profit of approxf- ,mately s500,0oO. That Mir. Ford has demonstrated an unusual even unique genius for industrial operation and apparently now for railroad opera tion is not questioned. Some have gone as far as to say that if the railroads of the United States were operated by five or six men whose ability would compare well with that of MT. Ford
 there might be little or no need Of aid from the government.
 Of course, the inference is that Mir Ford has demonstrated that even in these days of railroads embrarrass- ments a high degree of efficiency can be secured. so high in fact as to justi- fy a lowering of rates, so that if he was able to do this, other railroad
 managers might following his ex- ample, gain like results.
 This, however, would be doing an injustice to the able men who are now straining every nerve in order to se- cure economy of operation, and as soon as possible put the railroads in prosperous condition to the benefit, not only of the roads themselves, but of the people. Mir Ford would be the last one seriously to criticize all American railroad management. He is fair man, and he therefore under stands that there are exceptional reasons why it was possible to con vert a defict into a surplus in the operation of his railroad.
 In the first place this railroad Is really in fact if not in name an in- tegral of the manufacturing industry
 which is identified by MT. Fora name. He has therefore been able 10 furnish the railroad with very large amount of tonnage. One of the railroad managers whose offices are in New York, while speaking admir- ingly of MT Ford's achievement, nevertheless, said that if he could se- cure the tonnage which MT. Fora s industry furnishes to his railroad then he could take any railroad in the United States no matter how weak and make it pay handsomely.
 A Man of Capital
 Then again MT Ford is able without borrowing, to Invest a large amount of money in the improvement of this railroad. The presumption here IS that4ehe purposes making an invest
 ment of this kind. He is in accord with those who believe that the more ,1xx-a axr cxYC Ct Q 1 especially if the improvements are made chiefly out of earnings then much greater economies in the opera ton of the railroad can be secured. In other words, investment of this kind no matter how large IS fuiiy Justified by the results.
 In this respect, MT. Ford is not leader. although he may have been had he not been familiar with the achievements of some who have per fected our railroads. The three lead CTS in this policy were John Newell long president of the Lake Shore Railroad company. D. H. Harrlman' whose name identifies the tr1umpns of the Union Pacific. and A. J. Gas satt. who was president for some years of the Pennsylvania Railroad company. MT. Newell set the example of devoting large sums of money to the improvement of the Lake Shore railroad At first he was severeiy criticized, but he persevered until at last the great earnings of the Lake Shore represented the economies que to the building of it up to higniy lperfected railroad system.
 MT. Hartman did the same With the Union Pacific. even confesslns that he had ,profited by the example which President Newell set. 50 aiso did President Cassatt whose achieve ment is now identified by the great Pennsvlvania terminal on Manhattan Island to which approach Is made by electrified tunnels under the Hudson and by control by the Pennsylvania of the Long Island Railroad system,
 MT. Ford according to the belle1