Omaha daily bee., 1921-08-16
Railroad Owned
By Ford Shows
$5OO,000 Profit
High Degree of Efficiency
Demonstrated; Line Furnish.
ed With Large Tonnage
From Plant, However.
BY HOLLAND.


brought about such efficiency in the
operation of the Detroit. Toledo &
Ironton Railroad company, of which
he or his corporation is the owner
as to have eliminated the deficit and
secured an operating profit Of approx.
imately $s00,000. That Mr.. Ford has
demonstrated an unusual, even unique
genius for industrial operation and
apparently now for railroad operation
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 Mr.
Ford there m ght be little or no need
OF aid from the government.
OF course the inference is that Mr.
Ford has demonstrated that even in
these days of railroads cmbarrass-
ments high degree of efficiency can
be secured, so high in fact, as to
justify a lowering of rates. SO that
II he was able to do this other rail-
road managers might, following his
example. gain hike results.
Rosd Part Of Industry.
This however would be doing injustice
to the able men who are now straining
every nerve in order 10 secure economy
Of operation and as soon possible put
the railroads In PROSPEROUS condition to
the benefit not only of the roads them
selves, but of the people. Mr.. Ford
would be the last one seriously tc criti-
else all American railroad management
He Is a fair man and he therefore under
stands that there are exceptional reasons
why it was possible to convert deficit
into a. surplus in the operation OF his
In the first place this railroad Is real.
ly, in fact II not In name. an integral
part OF the mani featuring industry which
is identified by Mr., Fords name. He has
therefore been able to furnish the rail-
road with very large amount of tom
mage, One Of the railroad managers
whose officers ere in New York while while
ment, nevertheless said that X he could
secure the tonnage Mr.. Ford's industry
furnishes to his railroad then he couid
take any railroad In the United States
no matter, how weak and make II pay
handsomely
Then again Mr.. Ford Is able without
borrowing to invest large amount OF
money in the Improvement OF TINS raii-
road The presumption here is that ne
purposes. making an investment OF this
kind He is in accord with those VINO
believe that the more highly peTiecteo
railway system IL. especially II lhe in.-
provements are made chiefly out OF earn
ings then much crater economies IN tne
operation of the railroad can be secured
In other words investment, OF ehis f.i knu
no matter how large is fully 1ustitied
by the results.
In this respect Mr., Ford is not leader
although he might have been had ne no.
been familiar with the achievements OF
al nrIN n y
This three leaders in this policy were John
Newell long president OF the Lake shore
Railroad company; b. H. Hartman whose
name Identifies the triumphs or the pnloh
Pacific, and A. J. Cassatt, who was presi-
dent for some years of the Pe1nsylvania
Railroad company Mr. Newell set the
example of devoting large sums OF money
railroad. At first he. was severely crtti-
cised, but he psrsevered until at last the
great earnings OF the Lake shore nt','a Iep,e
scented the economies due 70 tne puiluIns s
OF it up to highly perfected railroad
SYSTEM rs
Hartman Follows Example.
Mr.. Hartman did the same with the
Union Pacific, even confessing ihat ne
had profited by the example which presi,
Cassatt, whose achievement is now tdenti,
fled by the great Pennsylvania terminal
on Manhattan Island to which approach
Hudson and by the control by the Penn
vi.ania OF tho Long Island Railroad sys-
tenn. -.
railway managers here, will not hesitate
to spend all the money that Is needeo 70
bring his railroad property In such condl-
ton as will cause II TO be c9mparea IIa;tsd rayor,
State. When this is done the railroad
should, even though high wages and low
rates be maintained. greatly increase us
earnings ana perhaps be recognized as
relatively speaking the first Of the Amer
lean railroads to regain high prosperity.
Question Of Tonnage.
As Mr. Ford's manufacturing industry
is able to give a very great tonnage each
way to this railroad. this fact Is spoken
of when reference Is made to the tri,
ufinphs, now recognized, which Mr., Ford
He is exceptionally situated because
from one point of view his railroad rep
resent one pocket and his industry rep
resents another, both pockets being those
OF Mr.. Ford. Railway managers say
that IL It were possible to secure ran.
road which is so situated as to give IL
a very large tonnage, coal for instance,
then II could distribute this tonnage
among the various lines composing its
entire system and thereby gain earnings
est and reasonable dividends. Mr.. Ford
did not buy this railroad because ne
had ambition to venture into the iisiu s'.
Of railway operation and 10 maeeh M
achievements Win tiusv "AtSA-
Sained by some Of our great railway
managers and promoters. He bought TINS
railroad, II the common understahainss
he correct, because he realized tnat II
It were wisely operated it would be
valuable accessory to his manufacturing arils
industry. But he realized tnat ne uotsu
not get full value unless 1t was adequate
" managed and 1t Is a fact that ne mas
surprised railway managers by y, his gaSime sur-
hiSher wages than unions ask while at
the same time he prepared to reduce
rates But 1t should be. borne IN minu .in,
railway managers say that the reduction
IN rates is Of great benefit to MS IN
dustry. Railway. managers acknowieosne an
i Mr., Ford's almost unique ability n,,an as ar
rSndustrial manager and now as railway q,
msnarer. but they also feel that ~
unfair to American railway ,sdna manasemen hstween
to make critical comparisons ,,cs, Wr
tbe,r MANAGEMENT and that wnicn M.
Ford has instituted and so FAR cafr'eu
on successfully.
slsuAA