Twin city review. [volume] (Champaign, Ill.) 19??-1929, 1922-02-10
RAILROADS NEED
INTELLIGENT
MANAGEMENT

,.,.ls a. 8 y - President Gompers,
= - Fabrrarv number Of the Ame~-
iean Federati0nlsl, gives scar ' sl.,l,s
snalVsis of the ruling Of me ihsei-
e9sfs commerce COMM sion 1eeiliiiils
d aeeede to the request Oh hehfg
F,fd Ia reduce rates on shipments u
coal over his railroad. ,..,4
.arhe philosophy Of cur present
......a 60 IS almost beyond under
s5ta,jisgo declares Mr.. 6ompers. we
- our archaic anti-comDinatloh
- in tie E8pe Of preventing the
Nv - - because it 10
bsid that the formation Of trusts de-
stro.s the probability Of competleio.h'
On ihe other hand We MAINTAIN an m :
,aratafa commerce commission, one OF
~bose functions is to prevent eIIec-
tive competitiui. ,..oa ;tsalf
on record a. occupying the posilioil,
sbict from the outset Il was boaho
Intimately TO occupy, as the defender
Of those railway systems "Illeh arg ?
least efficient in tie transportation OF
commodities. The commission has De
clined to permit the Detroit, Toledo
and Ironton Railroad to reduce
Treight rates on coal The railroad Is
able and willing to transport coal at
a rate lower than the one which now
exists. The present rate allows the
comnanv a profit which Is larger than
the company desires to have.
aThe commission does not deny that
the railroad can transport coal at a
profit at a rate lower than the fate
now in effect but it refuses to per
mil a reduction in the rate on the
ground that if the Detroit, Toledo d
Ironton were permitted to reduce Its
rate ON coal the result would be I'M
fair To other railroads which claim
they can not make a profit at low
or rate. Not only that but the com
mission believes a disadvantage would
be placed upon coal mines not stu
ated on the ID. I. g. |. line. The com
mission finds that 3.5 per cent OF the
coal transported by the ID. t. d |.
Is produced in mines on that line
while the balance comes over that line
from coal mines situated on connect
ing roads. The commission finds 1t
impossible to reduce the coal rates on
these connecting roads, and therefore
il declines to allow the d. I. d |. to
reduce its rates.
aThere is a wide margin of differ
ence between reckless rate-cutln8
and the basing of a service price on
the cost of that service. The inter
state commerce commission does not
deny that the d. 7. a. |. is able to
transport coal at profit at rate
lower than the rate now in effect. In
asmuch, however, as other roads can
not do likewise the d. I. a. |. is peck
citing profit beyond its desires.
1.-The d. T. & |. is owned by Henry
Ford. There are many just crit
cisms of Ford methods in industry,
but the fact that Mr.. Ford has sue
ceeded in making himself the richest
man in the country without bringing
upon himself the hatred which ordi-
narily comes with such an amassing
of wealth is proof of the fact that
the country knows Henry Ford pri-
marily as a man of service and not
as profteer.
"The decision of the interstate COM
merce commission in the case of Mr.
Ford's railroad will call into serious
question our whole method and ma
chinery of controlling the railroad:
of the country.
what our railroad systems neet
most is intelligent management rath
er than arbitrary control"