Evening journal. [volume] (Wilmington, Del.) 1888-1932, 1922-01-21

WASHINGTON, d. c.. Jan. 21.
In testifying before the Interstate
Commerce Commission, Mr.. W. L.
Mapother, President of the Louisville
and Nashville Railroad Company,
speaking for the Southern District,
said in part:
1t might be we'll to refer to Arti-
Gle ii OF the Commissions sugges-
ton as to the character Of testimony
10 be introduced at this hearing. This
inquiry or suggestion reads;
Question IL: To what extent
can net income be increased by en-
HANGED economy and efficiency in
management"
This question deals with the whole
field OF management and opens a
tremendous realm of conjecture.
Economy In railroad operations is Of
two kinds; one that Is voluntary and
helpful, and the other that is COM
pulsory and. generally, detrimental
believe that thrifty and careful
administration has been practiced to
the maximum extent and Il is quite
evident that the exigencies OF the
transportation situation during the
past year have forced the application
of economy upon a scale which, II
continued for any great length Of
time, must ultimately rebound to the
detriment of the public interest.
Self-interest. in fact, existence IT.
self. demands the exercise OF the ut
most economy and other principles
OF successful management. What is
management or where Is manage
ment under existing conditions?
With complete regulation OF practic-
ally every detail of railroad opera
ton. what sway is management able
to exercise?
The process of regulation. or gov
ernmental administration has reach
ed the point where the discretion
AIRY powers and authority OF railroad
managers have been so stined. or i'm
paired. that management in its com
.prehensive sense is virtually obsolete
With government agencies. on the
one hand, maintaining absolute con-
troll, 100 per cent, over the revenues,
the capitalization. the accounting.
equipment and nearly all operating
practices, and, on the other hand.
prescribing rates OF pay and work
ing conditions for all classes Of en-
ployees. thereby controlling abso-
lutely more than so per cent. OF the
operating expenses; standardizing the
rates OF pay and regulations for all
carriers. without regard to dissimilar
circumstances and conditions. and
even requiring the payment OF mil
lions OF dollars for work that is new
err done. 1t is inconceivable that the
arrangements can be held RESPONSE
BILE for failure to produce results.
which, except for such conditions.
might easily be accomplished.
Management has been RELOCATED to
the commonplace task Of determining
what work may or may not be de-
ferred with safety; OF calculating re-
suits produced by the strict applica-
tion OF laws and regulations and then
undertaking the somewhat difficult
duty OF providing 1.-The funds with
which 10 meet the deficits.
Qualified by the peculiar condi-
tons involved in operations during
the recent past, particularly with re-
spect to labor, over which the man
agements had virtually no control II
Is believed that the maximum econo-
my and efficiency has been obtained
At present. all the railroads. pur-
suant 10 the dictates OF prudent man
agement. are obliged to conserve
their revenues and retrench their
expenditures to a most abnormal and
undesirable degree.
The managers OF the railroads in
the Southern Region are for the most
part, men whose lives have been
spent in railroad work and. in many
instances. on the properties with
which they are now connected. Prac-
tically all OF them. in response ia
Inquiries in connection with this
hearing have expressed the convic.
ton that. with the present limita.
lions OF management. no further
economies or efficiency can b,
brought about.
Some OF the factors likely to brinl
about substantial Improvement ma,
he enumerated as follows:
() A reduction I'm the cost of labor
Wages are now fixed by an agenc,