LETTERS FROM AN OLD RAILWAY OFFICIAL SECOND SERIES HIS SON, A GENERAL MANAGER BY CHARLES DELANO 1912 Published by the SIMMONS-BOARDMAN PUBLISHING CO. NEW YORK McGraw-Hill Book Company, Sole Selling Agents 239 West Thirty-ninth Street, New York London, E. C., 6 Bouverie Street. Berlin, N. W. 7, Unter der Linden 71 .COPYRIGHT, 1912, BY SlMMONS-BOARDMAN PUBLISHING Co. NEW YORK FOREWORD. The author of the letters composing this book, which appeared serially in the Railway Age Ga- zette in 1911, is a West Point graduate. He served as a lieutenant in the 6th United States Infantry. He is a civil engineer. He is a gradu- ate of the Cincinnati Law School. Leaving the Army to enter railway service, he worked as freight brakeman, switchman, yardmaster, emer- gency conductor, chief clerk to superintendent, and trainmaster. When the war with Spain be- gan in 1898 he quit railway service and partici- pated in the Santiago campaign as a major of volunteers. After the war he re-entered railway work, and was trainmaster and later general superintendent. Subsequently, he did special railway work in various staff positions for both large and small railways in the United States, Canada and Mexico. He was for a time inspector of safety appli- ances for the Interstate Commerce Commission. In 1907 he assisted in the revision of the busi- ness methods of the Department of the Interior at Washington, D. C. Then he was receiver of the Washington, Arlington & Falls Church Elec- tric Railway. In 1910, as temporary special rep- resentative of President Taft, he outlined a scheme for improving the organization and methods of the executive departments of the iii 458642 FOREWORD. United States government. Meantime, in July, 1908, he had become special representative of Mr. Julius Kruttschnitt, director of maintenance and operation of the Harriman Lines, and had entered on a study of the needs of the operating organization of those railways and of the means that should be adopted to meet those needs. The result of this work was the adoption by most of the Harriman Lines of the unit system of organi- zation. On January 15, 1912, Major Hine be- came vice-president and general manager of the Southern Pacific Lines in Mexico and the Ari- zona Eastern, having about 1,600 miles of rail- way. The foregoing details have not been given for biographical purposes. They have been given to enable the reader to understand the author's point of view. Or, rather, his points of view. For few men have had opportunity to look at the railway business from so many angles, both prac- tical and theoretical. Given such an education, such a training, such a varied experience, and a keen observer's eye to see, an active, logical mind to generalize, and a graphic, witty, scintillant English style to set down the results of observa- tion, experience and thinking, and, if their pos- sessor turn to writing, the product is sure to be literature of interest and value. The readers of Major Hine's first series of letters, "Letters of an Old Railway Official to His Son, a Division Superintendent," found them at once entertain- ing, suggestive and instructive. They will find equally or more so the second series, written after a wider experience, and now embodied in this volume. IV FOREWORD. One of the greatest problems of modern rail- way management is that of organization. Little railways have been combined into big ones ; and big railways have been consolidated into big sys- tems. To so organize these extensive systems that each division and each railway shall have enough individuality and autonomy to deal effec- tively and satisfactorily with the conditions and needs local to it, and at the same time bring about the correlation and unification of all parts of the entire system essential to the most efficient operation this is one phase of the problem. To develop men able to administer skilfully depart- ments having many and varied branches this is another phase. It was as a means to solving this great problem that Major Hine worked out the unit system of organization now in effect on most parts of the Harriman system. In the letters composing this book he has described, not with the cold, hard outlines of a blue print, but vividly, and with fullness of practical illustration, trie nature, purposes and workings of the unit sys- tem. Whether the reader agrees with the au- thor's views or not, he cannot but be interested in them as the views regarding a scheme of or- ganization which is the subject of widespread interest and discussion of the man who origi- nated and worked out that scheme of organiza- tion. Besides organization the letters deal with many other questions of practical interest both large and small with the relations of the railway with the public ; its regulation by public bodies ; the labor situation on the railways, etc. Indeed, they touch on almost every phase of contempo- FOREWORD. rary railway conditions and operation. Full of human touches, they clothe the skeleton of^ rail- way organization and operation with flesh and blood; and will give the current reader and the future historian a better picture of contemporary railway working than many more stilted and pre- tentious books. SAMUEL O. DUNN. VI FILE NUMBERS. LETTER I. The New General Manager I LETTER II. Building an Organization 10 LETTER III. The General Manager on the Witness Stand 20 LETTER IV. Further Gruelling of the General Manager 32 LETTER V. Limitations of the Chief Clerk System 43 LETTER VI. Preventing, Instead of Paying, Claims 52 LETTER VII. The Chief of Staff Idea 63 LETTER VIII. The Unit System 73 LETTER IX. Standardizing Office Files 88 LETTER X. The Line and the Staff 100 LETTER XI. The Problem of the Get-Rich-Quick Conductor. 112 vii LETTER XII. The Labor Nemesis and the Manager 126 LETTER XIII. A Department of Inspection, or Efficiency 136 LETTER XIV. Preserving Organization Integrity 146 LETTER XV. The Size of an Operating Division 156 LETTER XVI. Supplies and Purchases '. . 168 LETTER XVII. Correspondence and Explanations 181 LETTER XVIII. Organization of the Ideal Railroad 192 LETTER XIX. The Engineering of Men 205 LETTER XX. The Fallacy of the Train-Mile Unit 214 LETTER XXI. The Man-Day as a Unit , 224 Appendix .228 via Letters From A Railway Official LETTER I. THE NEW GENERAL MANAGER. Chicago, April 8, 1911. My Dear Boy : Once more a circular comes to gladden my heart and gratify my pride. This circular announces your appointment as general manager, a position of honor and im- portance, extensive in its opportunities for good administration as well as for wasteful neglect. Some seven years ago, when you were a di- vision superintendent, I wrote you a book of letters which caused us both to be taken more seriously than perhaps we shall ever be again. Can T. R. come back? I don't know, I am sure, but your old Dad can and will. For never before in our splendid profession of rail- roading has there been greater need for the wisdom of old age, the enthusiasm of youth, and the balanced execution of middle life. We, LETTERS FROM A RAILWAY OFFICIAL. the railways, we the most scattered and, ergo, the most exposed of property rights, are the first of the outposts to receive and to repel the assaults of anarchy and its smaller sister, so- cialism. Subtle, sinister, and specious is the reasoning which supports the claims of those who single out the arteries of inland commerce as a thing apart, as something immune to the irresistible laws of cause and effect. Shall we sit idly by, because we have had our part ? No, my son. In that inspiring painting, 'The Spirit of '76," the old man and the boy, equals in enthusiasm, typify the soul love of liberty of an aroused people. Let you and I, therefore, do our little part to call to arms our brethren of a nation-long village street. Perhaps we are only hired hands of imaginary "interests." Perhaps, nevertheless, we are liberty-loving, God-fearing, right-thinking American citizens. Perhaps we do not need to be backed into the last corner before we turn and stand for the God-given rights for which men of all ages have been willing to fight and die. Perhaps the muck-rakers have not procured all the patents pertaining to perfection, potential or pro- nounced. But be that as it may, you and I can at least be heard, can have our day in the THE NEW GENERAL MANAGER. forum of public opinion, which after all is the court of last resort. In the language of Mr. Dooley, the decisions of the Supreme Court follow the popular elections. What shall we do to be saved? First, put our own house in order that example may pro- tect precept. It is a pretty good house after all. Only eighty years old to be sure, short in epochs of experience, but relatively long in aeons of achievement. It already has some degenerate offspring, but mighty few when you consider the rapidity of forced breeding, the intensity of incubation. Transportation, ac- knowledged as second only to agriculture in the world's great industries, has advanced faster and further in eight decades than has agriculture in eight centuries. That is some- thing to be proud of. Therein is glory enough for us all. Unfortunately, pride goeth before destruc- tion. In the bivouac of the living, glory is a mighty unreliable sentinel. Let us hang up pride and glory as our Sunday-go-to-meeting clothes. Let us don consistent practice and tenacious watchfulness for week-day wear. Let us cease to temporize with principle when such unmanly action seems easy and inexpen- 3 LETTERS FROM A RAILWAY OFFICIAL. sive. Nothing is so expensive ultimately as a violation of principle. A platitude, you say. So it is. The aforesaid T. R. has gained a great hold on the American people, at one time a strangle hold, by repeating platitudes over and over again. Great is the man who can measure the limitations of his fellows. Let us take a leaf from his book and repeat, reiter- ate, and reverberate the Ten Commandments, and the greatest of all commandments, the Golden Rule, alias the Square Deal. It takes an abnormally intelligent people to grasp at first blush the truism that railways should charge "what the traffic will bear" for the same good reason that the corner grocer makes all the profit the business will survive. Therefore, put the soft pedal on cost of service and a fair return on capital invested. Get on the band wagon and follow the able lead of the good old Railway Age Gazette in playing the logical tune of value of service rendered, of charging all the admission fee the show will stand. The people will not go to church to hear our preaching. We must reach them in the highways and the byways, in the moving picture shows, and through im- provised Salvation Armies of self-interest. Do 4 THE NEW GENERAL MANAGER. not expect the people to espouse a cause in which we are half-hearted. Either we are right or we are wrong. Either the govern- ment should own and run the railways, or the stockholders should retain possession and we, the intelligent entrepreneur class, should con- tinue our scientific management for scientific it has been. In a world of complexities, filled with rela- tive things, some truths are so absolute that they are axiomatic, some positions so pro- nounced that there is no middle ground. From Trafalgar there rings through the ages Nel- son's signal, "England expects every man to do his duty." Its interpretation and its adapta- tion for us to-day mean that every railroad man, every home lover, every believer in prop- erty rights must defend the sound position of the railways, must anticipate the assaults of pseudo-socialism. The individual is the indi- visible unit of society. The family is the con- secrated unit of civilization. The home is the prime requisite for the family whose very ex- istence depends upon the right of property, tangible or intangible. You say that all railway men are doing something along this line. So they are, but 5 LETTERS FROM A RAILWAY OFFICIAL. nearly every one can do more if intelligently and persistently directed. We have taken too much for granted in believing that the legal de- partment would look out for legislation, and the press agent for publicity. This phase, like many of our problems, is a question of organi- zation, which itself as a science is a branch of sociology. On most railways some department never, of course, our own has uncon- sciously tried to be bigger than the whole com- pany, in violation of the axiom that the whole is greater than any of its parts. When, by proper organization, we balance these depart- ments especially on the other fellow's road we shall be in a better position to present a more united front in forestalling the arrival of the common enemy, prejudice and his principal ally, ignorance. "Men," says Marcus Aurelius, "exist for one another. Teach them, then, or bear with them." We, the railroads, have done our share of bearing. It is time to do more teaching. Before we can impart knowledge we must know ourselves, we must be sure of our own information. Naturally, I want you to be the best general manager in the country. Therefore, if I am a little too didactic at times, you must be patient 6 THE NEW GENERAL MANAGER. with me. Of course, you will have to work out your conclusions for yourself. Remember that I am too old at this teaching game to try always to think for other people. My job is so to state the propositions that you will reach the answers in your own way. Incidentally, the more you think you have discovered for yourself, the greater the credit due your teacher. Men are only boys grown tall. As grown-up children they seem to prefer the mis- fits of their own manufacture to the hand-me- down assortment from the shelves of stored experience. Too often the employing corpora- tion pays the bill for educating an official for his duties after his promotion and appointment, for the cloth he wastes in selecting unwise pat- terns of procedure. Most of our large corporations are still in a stage of industrial feudalism. In the middle ages the feudal baron and his methods were absolutely essential to preserve civilization for society. Without him and his forceful ways the relapse to barbarism would have been rapid. In the earlier periods of the large cor- poration the industrial baron and his ofttimes lawless audacity were essentials of corporate existence. As these great types die off, their 7 LETTERS FROM A RAILWAY OFFICIAL. system dies with them. Supply keeps close on the heels of demand. These feudal barons of industry and commerce are breeding no suc- cessors because none are needed. As a govern- ment of laws succeeds a government of men, so administration by system displaces adminis- tration by personal caprice. The scheme of progress now demands a higher type of cor- poration official, and he is being rapidly de- veloped. Altruism, adaptability, consideration and courtesy are the more modern require- ments. The successful official of to-day is more of a sociologist than ever before. He must study human nature from its broadest aspects. He must know the public, its whims and caprices, its faults and foibles, its intelli- gence and its strength. He must learn to know his men that he may see how many things they can do, not how few. Human nature is mighty good stuff. The more it is trusted the better it responds. The feudal baron did not know this. He was jealous of his own authority, be- cause more or less conscious of his limitations, of the weakness of his system. Those who take up his self-imposed responsibilities must be better men. They must be so sure of them- selves and of the science of their methods that 8 THE NEW GENERAL MANAGER. they can trust others, can delegate authority to the man on the ground. The task of the gen- eral manager to-day is so to decentralize au- thority that the company can obtain the best thought of the humblest employe, that indi- visible unit of society whom his feudal su- periors have trusted too little. The most im- portant unit of organization is the individual. Give him his due weight as a living, thinking man, and you increase the mass efficiency of the corporation. This run is too heavy for stringing on one schedule. I am now giving you the first ter- minal figure, 12.01 a. m. at Problem. Next time if I can push you to Principle you can per- haps flag over a station or two toward the despatcher at Understanding, whose wires have been known to go down in stormy weather. With a father's blessing, Your affectionate and rejuvenated, D. A. D. LETTER II. BUILDING AN ORGANIZATION. Chicago, April 15, 1911. My Dear Boy: Nearly every man en- trusted with authority over his fellows flatters himself that he is a born organizer. Flattery is never more deceptive than when applied to one's self. For every good organizer there are a hun- dred good administrators or managers. What often passes for good organization is first class administration. Yes, many a mother's son who reads this will exclaim at first blush, "That is just what I have been saying for a long time. It beats all how weak some organizations are. I am glad that my organization can stand the test of such criticism." If elements of self -perpetuation are prime essentials of good organization, the Pharisee family are certainly entitled to bid in the pre- ferred runs. The corporation was evolved to supply a de- mand of society. Life, property, material, 10 BUILDING AN ORGANIZATION. moral and spiritual welfare could not be left to depend upon the uncertain earthly existence of the leader or trustee. So, both rationally and empirically, by reason and by costly ex- periment, came the corporation to beat Death at his own game. Like all progress the cor- poration was resisted, because in the divine scheme of things the radicals never long out- number the conservatives. Like all real prog- ress the corporation idea won because it was needed. The corporation, whether govern- mental, religious, industrial or commercial, marks a distinct advance from feudalism by protecting the rights of the many against the caprice of the few. Because we have moved so fast might has often seemed to be right. Because the line of least resistance is the most attractive, we have sometimes backed down the hill and doubled when a good run with plenty of sand would have carried us over. Large corporations, including many railways, have often failed to attain maximum efficiency. Much of this can be traced to a neglect to carry out consistently in practice the sound working conception of the corporation. The corpora- tion has helped society to emerge from political and financial feudalism. The interior organi- ii LETTERS FROM A RAILWAY OFFICIAL. zation and administration of most corpora- tions, including government itself, are still too feudal in conception. The problem of to-day is so to eradicate this feudalism that the cor- poration can have the benefit of a free play of its constituent forces. Where feudalism exists the effective working strength is limited to the personal equation of the man at the head. The United States government is stronger than Washington, or Lincoln, or Taft. The Great Northern Railway measures its present ac- knowledged effectiveness by the man the Swedes call Yim Hill. The United States gov- ernment grows stronger with every adminis- tration. The Great Northern Railway, too strong to be destroyed, faces a period of rela- tive distress with the next dynasty. The Penn- sylvania Railroad is stronger than such strong men as Scott, Cassatt and McCrea. Both the United States government and the Pennsyl- vania Railroad, although among the least feudal of large corporations, can still eradicate feudalism from their interior organization and administration. That, in good time, both will do so cannot be doubted. Inconsistencies be- tween comprehensive conceptions at the top and narrow applications at the bottom are 12 BUILDING AN ORGANIZATION. often overlooked. When disclosed and ap- preciated these incongruities soon give way under pressure of the broad policies above. We must build up from the bottom but tear down our false work from the top. Organization is a branch of a larger subject, sociology, the science of human nature. Or- ganization is not an exact science like me- chanical engineering, for example. The va- riables in the human equation defy entire elimi- nation. We check and recheck engineering conclusions. We compute and recompute ma- terial strains and stresses. We run and double back with the dynamometer car to try out our tractive power. We test and retest materials. We weigh and measure our fuel and our lubri- cants. We do all this for material things, which, because more or less homogeneous, are the easiest to measure. When we come to the really hard part, the judging of human nature, the co-ordination of the heterogeneous human elements, our self-confidence denies the ne- cessity for preconceived practical tests. Be- cause he is our man, because he followed us from the sage brush or the mountains, he must be all right. "Jti st look at our results." Right there, my boy, shut off and pinch 'em down a 13 LETTERS FROM A RAILWAY OFFICIAL. little. What are results ? Does any one know exactly? One year they are operating ratio, another, train load, and later on, net earnings. In no storehouse do material things deteriorate to scrap value faster than does the intangible, indeterminate stock article, results. No, I am not a pessimist ; I still see the ring of the doughnut on the lunch counter. But I do object to being fed on birds from year before last's nests. I believe the railways hatch out better results every year, but I also feel that improvement should and can be made even faster. It is largely a breeding problem. How best can we blend our numerous strains to pro- duce a balanced output? Too often we try to do this by cutting off the heads of all the old roosters, whose craws really contain too much good sand to be wasted. A change of diet to a balanced ration may be all-sufficient. The wonderful Nineteenth Century in the name of a proper specialization went too far. It over-specialized. The still more wonderful Twentieth Century will swing back to a bal- anced specialization. The medical colleges are learning that they can not turn out successful eye and ear specialists, the law schools that the constitutional or interstate commerce lawyer is 14 BUILDING AN ORGANIZATION. the production of a later period. The success- ful specialist must first have the foundation of an all-round training. Broadly speaking, one applies everything of something only by learning something of everything. We all be- lieve in specialization. Where we differ is as to the point where specialization stops and overspecialization begins. We all believe in religion. Where we differ is as to which is the main line and which the runaway track, as to which derail deserves a distant banjo signal and which an upper quadrant. Orthodoxy is usually my doxy. The great fear is always that the other fellow, being less orthodox than we, will try to put over some constructive mile- age on us. Sometimes this causes us to make his run so long and his train so heavy that he ties up under the sixteen-hour law and we miss supper hour going out to tow him in. An empty stomach discourages drowsiness, and we may then stay awake long enough tp realize that said other fellow was just as orthodox as anybody about trying to make a good run. The corollary of specialization is centraliza- tion. The undesirable corollary of overspecial- ization is overcentralization. Get out your de- tour map, approach this proposition by any LETTERS FROM A RAILWAY OFFICIAL. route of reasoning you please, and you will reach the same conclusion. Railway administration to-day suffers most of all from overcentralization. Trace this to its source and you will find overspecialization of function, and its concomitant, an exagger- ated value of certain constituent elements of administration. When in doubt, recall the ever applicable axiom that the whole is greater than any of its parts. Some people confuse the terms and ideas, concentration and centraliza- tion. Proper concentration in complete units by an earlier convergence of authority permits decentralization in administration. A lack of such early concentration makes centralization inevitable. Again, concentration of financial control is not incompatible with decentraliza- tion of administration among constituent con- trolled properties. When the big bankers have time to think out these propositions for them- selves they will permit the railways to get closer to the people and hostile legislation will diminish if not disappear. Organization as a science seeks to develop and to support the strong qualities of human nature. Organization likewise takes account of and seeks to minimize the amiable failings 16 BUILDING AN ORGANIZATION. of human nature. Constitutional liberty in- sures the citizen protection against the caprice of the public officer. Administrative liberty demands an analogous measure of protection for the subordinate from the whim of his cor- porate superior. An amiable failing of many a railway president is to be satisfied with hav- ing everybody under his own authority, and to forget that the official next below may be em- barrassed by having only a partial control. The general manager who insists the hardest that his superintendents are best off under his de- partmental system will squirm the quickest un- der the acid test of having the chief supply, the chief maintenance or the chief mechanical of- ficial report to the president. The superinten- dent who finds himself with a complete divi- sional organization is oblivious to the troubles of a distant yardmaster with car inspectors. When your old Dad was a ninety-dollar yard- master some of his most important work was at the mercy of a forty-five dollar car inspector. The latter was under a master mechanic a hun- dred miles or more away, who in turn could usually and properly count on the support of the superintendent of motive power. The ob- vious inference was to relieve the yardmaster 17 LETTERS FROM A RAILWAY OFFICIAL. of responsibility for mechanical matters. From one viewpoint these mechanical ques- tions are too highly technical for the yard- master. From another they are matters of common sense requiring more good judgment than technical training. No, I would not put every yardmaster over the roundhouse fore- man and the car inspectors. What I would do would be to make the position of yard- master sufficiently attractive to impose as a pre- requisite for appointment a knowledge of me- chanical as well as- transportation matters. Gradually I would work away from the switch- man or trainman specialist to the all-'round man in whom I could concentrate authority as the head of an important sub-unit of organiza- tion. Instead of leveling downward, as the labor unions do, by assuming that the average man can learn only one branch of operation, I would recognize individuality and gradually develop a higher composite type. Because some car inspectors are not fitted to become yard- masters is no good reason for practically ex- cluding all car inspectors from honorable com- petition for such advancement. When we build a department wall to keep the other fel- low out we sometimes find it has kept us in. 18 BUILDING AN ORGANIZATION. We blame the labor unions for these narrow- ing restrictions of employment and advance- ment. Look once more for the source, and you will find it among our predecessors in the of- ficial class, a generation or more ago. These officials insisted upon planes of department cleavage which the men below were quick to recognize. Railway manhood has been more dwarfed by exaggerated official idea of spe- cialization with resulting departmental jeal- ousies than by the labor unions. Therefore, my boy, let us get some of these inconsistencies out of our own optics before we talk too much about the dust that seems to blind the eyes of those who are exposed to the breezes of that world famous thoroughfare which faces old Trinity Church in New York. Affectionately, your own, D. A. D. LETTER III. THE GENERAL MANAGER ON THE WITNESS STAND. Chicago, April 22, 1911. My Dear Boy: Did it ever occur to you how easily a bright lawyer could tangle up many an able railway official on the witness stand? Nowadays we have to spend more or less valuable time testifying about service, rates, capitalization, valuation, practices, meth- ods, and a score of other things that become of public interest. Whether this is just or un- just, necessary or unnecessary, is beside the question. It is a condition, not a theory, that confronts us. The wise railway man, there- fore, so orders his official life that it may en- dure the scrutiny of both the persecutor and the prosecutor, of both the inquisitor and the investigator, of both the muckraker and the political economist. It sometimes happens, since men are only boys grown tall, that pub- lic hearings are accompanied by stage settings for dramatic effect; that trifling inconsisten- cies are magnified into egregious errors. Let 20 THE GENERAL MANAGER ON THE STAND. me picture part of such a hearing with a gen- eral manager on the stand : Question: You testified, Mr. General Man- ager, on the direct examination that your road is well managed and has a highly efficient or- ganization, did you not? Answer : Yes, sir, we think we have one of the best in the country. Q. Would you mind telling the able mem- bers of this Honorable Commission in just what your superiority consists ? A. Not at all, sir. In the first place, we have a great deal of harmony and work very closely together. Q. Did you ever know a railway official who did not claim the same thing for that part of the organization over which he presided? A. (Hesitating.) Well, now that you men- tion it, I can't say that I ever did. (Sudden inspiration.) But you know there is a great deal of bluffing in this world. Q. (Drily.) What style of anti-bluffing device has your company adopted ? A. Of course, you are speaking figuratively. Such a thing isn't possible. We have a pretty good check in the fine class of men we have developed. 21 LETTERS FROM A RAILWAY OFFICIAL. Q. Then, it is a sort of breeding process? A. Yes, sir, that's it. Q. To go a little further, has your company any patents on improving human nature ? A. No, sir, we don't claim that. Q. Is it not a fact that your officials and employes are average citizens recruited and developed about like those of other roads ? A. That is hardly a fair way to put it, but I suppose they are. Q. Why isn't it fair? A. Because it leaves out of account the ac- knowledged efficiency that comes from having men well treated and contented, and better in- structed than others. Some farms make more money than others because the old man gets more work out of the boys. Q. Then your road has officials who can radiate more divine afflatus than others ? A. I didn't say that. We do the best we know how. Q. What is organization? A. Why organization is let me see why, organization is the name we use for the men the people, the forces we hire to run our road. It is hard to give a concise definition. I might ask you what law is. 22 THE GENERAL MANAGER ON THE STAND. Q. That's easy, law is a rule of conduct. Now, tell me, please, who runs the road? A. Why, the officers run the road, the men do the work. Q. Did you not just say that you hire men to run the road ? A. I didn't mean that. Q. Then in your business you are not very accurate. You say one thing and mean another. A. No, sir; we may have more sense than you think we have. We spend a lifetime at this business and must learn something about it. Q. Will you please tell this fair-minded commission just how you run the road, just how you attempt to minister to the needs of the intelligent people of this great common- wealth? A. Now, sir, it is a pleasure to testify. You are getting away from definitions and techni- calities and down to practical facts, where I feel more at home. I will be glad to tell you all about it. In the first place a railway is such a big affair that we divide it into departments. Q. Excuse me, what is a department? A. A department is well I can make it 23 LETTERS FROM A RAILWAY OFFICIAL. clearer by describing what it does. As I was saying, we divided it into departments, and a department is well a department is why, something so different from everything else that we put it off by itself and hold the head of the department responsible for results. We are very particular not to interfere with the de- tails of the departments. Q. Pardon me, but the present members of this exceptionally able commission, inspired further I may say by the example of our patri- otic governor, are accustomed to give pro- found consideration to these great questions. (Modest pricking up of ears of commission, with determined composite expression bespeak- ing relentless performance of a dangerous duty.) Please, therefore, tell us what your department does. A. As I testified on the direct examination mine is the operating department; as general manager I have charge of operation. Q. What does that include? A. It includes transportation, and main- tenance and new construction. It handles the business the other fellow gets. Q. Who is the other fellow ? A. The traffic department. 24 THE GENERAL MANAGER ON THE STAND. Q. Of another company? A. Why, no, of our own. It is just another department. It deals with the public, it gets the business, it makes the rates; excuse me it recommends rates to honorable bodies like this commission. Q. Then you in the operating department don't deal with the public ? A. Yes, sir, we do, more and more every year. Q. Is the traveling freight agent in your department ? A. No, sir, he is in the traffic department. Q. Then you have no control over him ? A. No, sir, no direct control, but as I said before, we all work very closely together on our road. Q. It is claimed that there has been dis- crimination in car distribution in this state, be- cause a traveling freight agent promised more cars to some shippers than the latter were en- titled to according to the supply available. How about that? A. I am unable to say. Q. Getting back to your narrative, please resume the interesting description of your de- partment. 25 LETTERS FROM A RAILWAY OFFICIAL. A. As I was saying, we have several depart- ments, each under a superintendent or other officer. We have a general superintendent, a chief engineer, a superintendent of motive power, a superintendent of transportation, a superintendent of telegraph, a signal engineer, a superintendent of dining cars, and a general storekeeper, all of whom we call general of- ficers in charge of departments. Q. I thought you said you are the head of the operating department. A. Yes, sir; that's right. Q. I don't quite understand. You say that there are eight departments in your depart- ment? A. Yes, sir; that is what we call them. It always has been so. Q. Then when is a department a depart- ment? A. You see these are really not departments ; they are just parts of the operating department which is really a department. Q. Then, why not have definite designa- tions ? A. I don't know. We have never thought it necessary. We are getting good results and giving good service to the public. 26 THE GENERAL MANAGER ON THE STAND. Q. What are results ? A. I am not sure ; the longer I live the less certain I am about these things. Q. I am glad to hear that. This impartial commission has been constituted because some railway officers tried to dictate what was best for this enlightened commonwealth. Now, tell us, please, what you think of the plan the United States government has of making the "bureau" the next unit of organization below the "department"? A. I have never given government organiza- tion much attention. The part of the govern- ment that concerns me most is the Interstate Commerce Commission, which seems made up mainly of inspectors. Q. Have you ever studied the organization of the federal courts, and of the army and the navy? A. I can hardly say that I have studied their organization, but I have observed them some. Q. Then you and your road do not give much attention to organization? A. Perhaps not to theories. We are very practical. I never could see where a railway is like the government. They are very dif- ferent. 27 LETTERS FROM A RAILWAY OFFICIAL. Q. Is not human nature the same in its basic characteristics, whether employed by a railway or the government? A. I suppose that it is, but many things about a corporation are different. Q. Is not the government the largest of em- ploying corporations with its citizens as the stockholders ? A. Perhaps so. I would rather go on and tell you something practical about our work. Q. Pray do so. A. You see, I am the responsible head, so that I insist upon being consulted about all im- portant matters, and leave only routine affairs to be acted on by my subordinates. Q. What are important matters, and what are routine affairs? A. Why, the important things are those that I handle personally, and routine, well, routine is what comes along every day and is so well understood that it does not require my per- sonal attention. Q. Do you think any three men could agree upon what should be considered routine busi- ness? A. I don't know. I had never thought of it that way. Many things have to be left to dis- THE GENERAL MANAGER ON THE STAND. cretion. That is where judgment comes in. Q. Whose judgment? A. The judgment of the man handling the matter ; in this case, my own. Q. You have been here all day. Who is handling matters in your absence ? A. My chief clerk. Q. You did not mention him before. What officer is he? A. He is not usually counted as an officer, but is considered the personal representative of an officer. Q. Does he sign your name ? A. Yes, sir; but puts his initials under my name. Q. Suppose he forgets to put his initials. Could you swear to the signature in court? A. I don't know. You understand that is only for routine business. Q. Does he sign your name to your personal bank check? A. No, sir ; he does not. Q. Then the company's business with the citizens of this state receives less careful at- tention than your own personal affairs? A. No, sir; the company's business comes first with me. I am a poor man today. 29 LETTERS FROM A RAILWAY OFFICIAL. Q. When you are away your chief clerk has to sign instructions to the general officers in your department? A. Only routine matters. Q. Does he receive a higher salary than they? A. No, sir ; a lower. Q. What determines relative salaries? A. Qualifications and experience. Q. Then you have the less qualified and the less experienced man instructing higher of- ficers. A. It might seem so, but in our case we are very fortunate. My chief clerk is an unusual man, and is very considerate and diplomatic. He knows that I do not stand for inconsiderate requirements of others. Q. From whom do you receive your instruc- tions ? A. From our president. Q. Always personally ? A. Not always ; his chief clerk is authorized to represent him. Q. Is his chief clerk as considerate for you as your chief clerk is for your subordinate of- ficers ? A. That is a very delicate question. I would 30 THE GENERAL MANAGER ON THE STAND. rather not answer unless the commission in- sists. (Hearing adjourned for day. General coun- sel sends cipher telegram to president stating indelicacy of state officials is almost unbear- able ; that bankers and business men should pe- tition governor to stop destroying credit of railways. ) All of which, my dear boy, is not as bad as it sounds, but, through difficulty of explana- tion, points the way to desirable improvements in railway administration. Affectionately, your own, D. A. D. LETTER IV. FURTHER GRUELLING OF THE GENERAL MANAGER. Tucson, Arizona, April 29, 1911. My Dear Boy: After the commission kicked for rest, the general manager tied up in his caboose. Nobody was allowed to run around him and he was marked up first out the following morning. The commission not hav- ing any agreement about initial overtime, the attorney acting as yardmaster handed him a switch list and told him to dig out these loads : Question: How many letters a day do you write ? Answer : I don't know, a great many. Q. How many a day go out of your office ? A. I can't state exactly, probably a hundred or more. Q. Then you do not see them all ? A. No, that would be impossible in such a large office. Q. Does the chief clerk see them all ? A. I think he does. 32 GRUELLING OF THE GENERAL MANAGER. Q. You are not sure then ? A. No, not entirely. I have had no com- plaints about that. Q. Is the only way you know about how things are going to have a complaint come in? A. Not exactly. I try to keep ahead of the game. Q. Are the offices of your subordinates run in this same haphazard manner? A. I do not admit that it is haphazard. The general method is the same. Q. Who is in charge of the distribution of cars? A. My superintendent of transportation. Q. To whom are his instructions given? A. To the division superintendents. Q. Does he give his instructions personally ? A. The important instructions he gives per- sonally. Of course, he cannot do it all alone. You understand that his department deals with individual cars and has an enormous amount of detail. Q. How many men are authorized to sign his name and initials ? A. I don't know. Q. Then you do not regard this as an im- portant matter? 33 LETTERS FROM A RAILWAY OFFICIAL. A. Not as important as some others. That is a matter for which the superintendent of transportation is responsible. I look to him. Q. Do you think every man charged with duties should be allowed to select his own type of organization and decide as to his own methods ? A. As far as possible, yes. Q. Then why not let each conductor make his own train rules, and each station agent keep his own kind of accounts? A. Because confusion would result. Q. Is it not a fact that on most American railroads six or eight clerks are signing the name or initials of the superintendent of trans- portation ? A. I don't know ; very likely. Q. Does not a similar condition exist in a smaller degree in most railway offices. A. Yes, sir, that is the system. Q. Then who are running the offices, the of- ficials or the clerks? A. I always supposed the officials. You see we could not afford so many officials. Q. Has it ever occurred to you that by hav- ing more officials you might get along with fewer clerks ? 34 GRUELLING OF THE GENERAL MANAGER. A. No, sir. Q. Who sign for the train orders on your road? A. Our conductors. Q. Have not conductors and operators been discharged for signing each other's names? A. Yes, sir. We must maintain discipline. If the train orders are not respected, accidents will result. Q. Then you have one policy for one class of employes, and allow your officials and clerks to be a law unto themselves ? A. Not exactly. As I said before we can- not afford so many officials. Q. Whose initials are signed to your train orders ? A. The superintendent's. Q. Why? A. Because it has always been that way on our road. It makes the order stronger. Q. If initials make an order stronger, why not sign yours, or the president's, or God Al- mighty's ? A. That would be ridiculous. Q. Then it is not ridiculous to sign the su- perintendent's initials when he is at home in bed? 35 LETTERS FROM A RAILWAY OFFICIAL. A. No, that is different. We wish to em- phasize the fact that the superintendent is in charge of the division. Q. Then why not put the superintendent's photograph on all the orders? Would that strengthen him with the men ? A. No, of course not. Q. You have been talking about the super- intendent ; is he the same as the superintendent of motive power? A. No, you do not quite understand. The superintendent has charge of a division and the superintendent of motive power, like the superintendent of transportation, has charge of a department. Q. Then the word superintendent doesn't always mean the same thing? A. No, sir, but no confusion results. You see, the heads of departments are general offi- cers, while the superintendent is a division officer. Q. Which superintendent? A. The division superintendent. Q. Is it not a fact that on some roads there is a question as to which has authority in cer- tain matters, the division superintendent or the superintendent of motive power? 36 GRUELLING OF THE GENERAL MANAGER. A. I believe so, but we do not have any such trouble. Q. (Producing copies of letters furnished by discharged office employe.) Does not this correspondence indicate a heated difference of opinion between your superintendent of motive power and a division superintendent which had to be settled by you? A. Oh, yes; I recall, I had forgotten that. That will not happen again. Q. What guaranty have you against similar friction ? A. I have. that all straightened out. Every- body is lined up and understands that I insist upon harmony with a big H. Q. To prevent confusion and, therefore, to save money why not make titles sufficiently distinctive in rank to prevent conflict of au- thority ? A. We have not thought it necessary. I do not go as much on titles as some people. The old-fashioned way is good enough for me. A rose by any other name would smell as sweet. Q. How, then, if you ordered roses for a funeral, would you guard against the corpse being handed lemons ? A. By sending a note or a card. 37 LETTERS FROM A RAILWAY OFFICIAL. Q. Signed by your chief clerk? A. No, sir. Q. Do you think it is honest to have your chief clerk signing your name while you are away at this hearing? A. There is no intent to deceive. Q. Do you not unconsciously try to convey the idea that you are in one place when you are really in another, or that you are acting when it is really an entirely different man who is taking action? A. Perhaps so. I had never looked at it in that way. It is a generally recognized custom. Q. You do not seem to regard the office part as very important, as you permit a lot of clerks to take final action all day long. A. The office is not as important as the road. I try to give the most attention to the impor- tant matters on the road. Q. You feel that by doing so the office will in a large measure take care of itself? A. That is it exactly. Q. Do you not think that most railway ad- ministrative offices have grown too large to take care of themselves? A. You see, we keep in close touch with our offices on a railroad, because when away 38 GRUELLING OF THE GENERAL MANAGER. we have a telegraph or telephone wire at our command. Q. What good does a wire do you if you are tied up in a hearing or a conference for two or three hours at a time ? A. I fear that I have not made clear to you just how valuable a man I have trained into a chief clerk. Q. I fear that you have not. You seem to believe the old system is all right. Do you think the last word has been said or that your road has hit upon the best system? A. The last word on these important sub- jects will never be said, but we have been get- ting along very well. * * * * I shall not continue further in this letter the catechismal method, lest you accuse me of for- getting that you long ago graduated from the kindergarten. So you did ; but when in doubt get back to early methods. After reading re- cently an article on scientific management, I had to recall my catechism to feel certain that handling pig iron is not the chief end of man. We all, you and I included, sometimes show up smaller than we really are, because we seem to think only in the narrow terms of the things 39 LETTERS FROM A RAILWAY OFFICIAL. to which we are closest. It once fell to the lot of a young official to escort over his road some of its directors, bankers from New York. Being an enthusiast for his section of country, being an operating man with an instinct for developing traffic, he talked of progress, of the economic and social welfare of the people. When he spoke of sugar planting, or of cotton growing, of blooded stock and dairy yield, the bankers asked, "How much does it cost to raise an acre?" or "What percentage of profit do they make ?" He returned from the trip feeling that money must be their god, that his directors could think only in terms of dollars and cents. It dampened his ardor for a time. Then he was so fortunate as to ride for a few days with some of the really big modern bankers. He found himself listening with open mouth to their expression of practical sociological truths. He marveled at their recognition of the human element, and he understood better why the board sometimes turned down his rec- ommendations. His only lament was that he could not see more of them. There, my boy, is the great misfortune, there is a problem to be solved. There is too much Boston, New York, Philadelphia and Chicago. The directors seem 40 GRUELLING OF THE GENERAL MANAGER. too far away. It is a step forward that the overlords of transportation are bankers who have won their way rather than hereditary de- scendants of once reigning families. Some method must be evolved to make for more elastic control. Annual inspection trips will not overcome that rigidity in administration at which the public chafes and from which it seeks relief in drastic laws. An interesting and hopeful phase of present development is the election to directorates of trained railway ex- ecutives like L. F. Loree and H. I. Miller. The professionally equipped railway director is a desirable evolution. Supply always follows de- mand, and the broad solution will be a compo- site made up of many elements of progress which perhaps have not yet unfolded them- selves to any of us. It is a great game, this transportation busi- ness. The more you study it, however, the more you discover that it is amenable to the same underlying principles on which rest the great and small activities of the human race. Like all professions, it has its distinct tech- nique. Like all professions, it suffers from the inborn tendency of human nature to segregate itself behind an exaggerated class conscious- LETTERS FROM A RAILWAY OFFICIAL. ness. "We are a little different," or "You do not quite understand our peculiar local condi- tions," are the arguments with which ultra- conservatism has opposed progress in all ages, are the obstacles which make so interesting all real contests for principle. I make no apologies for taking you in this letter from the witness stand of the west to the financial chancelleries of the east. When both the banker director and the general man- ager learn that signatures on letters and tram orders must be as sacred as when signed to bank checks, we shall be winning back a little of that old-time sense of personal responsibility which is so needed for improving composite efficiency today. What better epitaph could any man desire than this, "He helped to teach corporations to remember that lasting compos- ite strength comes only from intelligent recog- nition of individual manhood?" Affectionately, your own, D. A. D. LETTER V. LIMITATIONS OF THE CHIEF CLERK SYSTEM. Tucson, Arizona, May 6, 1911. My Dear Boy : I have had a good deal to say to you at one time and another about chief clerks and the chief clerk system. From actual experience as a chief clerk I know that it is a trying position. It is because the railway chief clerks of the country are as a class such a splen- did body of men that I am trying to do what I can to help them. Too many times a chief clerk misses promotion because he is such a valuable man that he has to stand still to break in all the new bosses who come along and leave him in the side track. The chief clerk system as we know it today cannot long survive because it is too feudal in conception to reflect the spirit of a progressive age. We need a chief clerk to be a head clerk, a senior clerk, a foreman of the office forces, as it were. Much of the time on American railroads the chief clerk is in effect an acting official, acting trainmaster, acting superinten- 43 LETTERS FROM A RAILWAY OFFICIAL. dent, acting general manager, acting vice- president, and even acting president. As such he signs the name of his boss, the theory being that the latter, like a feudal baron or a king, is omnipresent within his own dominions. Not only does this outgrown conception violate the fundamental laws of matter; it often borders upon a breach of honor, integrity and good faith. Legal fictions are fast giving place to the law of common sense. Railway officials should not risk arraignment before the bar of public opinion for such indefensible practices. When the chief clerk does business in the name of some one else the effect is dwarfing to all concerned. We do not get the effect of either one or two men, but that of a fraction of both. Again, the chief clerk is handling important correspondence with officials below of higher rank than himself, of greater com- pensation, and presumably of wider experience. Human nature is such that sooner or later the chief clerk, a junior, is telling an official, a senior, where to head in. Among the hundreds of railroad officials with whom it is my proud privilege to claim acquaintance, I have found nearly every one flattering himself, "My chief clerk never makes such breaks." To avoid 44 LIMITATIONS OF CHIEF CLERK SYSTEM. awkward and embarrassing silences, I am learning to discontinue the acid test, "How about your boss's chief clerk?" So widespread a belief indicates a generic trait of human na- ture rather than a sporadic condition. Organ- ization as a science seeks by proper checks and balances to minimize such amiable failings of human nature. Organized society preserves the effectiveness and dignity of its courts by allowing only a duly qualified judge to admin- ister justice. The old clerk of the court may really know more law than the young judge, but only the latter can sit on the bench and de- cide causes. The lay reader must be duly or- dained before exercising the full functions of a minister. The man who uses another's auto- graph signature in the banking business be- comes a malefactor. Are we so different in the large corporations that we can with im- punity ignore such safeguards? The chief clerk system had its origin when railways were small and officials were few. On a division, for example, the superintendent was perhaps the only official and by common ac- ceptance his clerk was really the next in rank. When a small tradesman or a small farmer goes away for a day his wife and boy may do 45 LETTERS FROM A RAILWAY OFFICIAL. the work without any one knowing the dif- ference. In a larger enterprise there has to be an understudy in charge when the head is away. You may have noticed that I use the word "rank" considerably. Rank is a practical ne- cessity for the proper enforcement of au- thority. Rank makes its appearance as soon as society organizes for its own protection. Rank may be local, limited, changing and tem- porary as contra-distinguished from general, extensive, hereditary, or permanent, but it is rank just the same. The purest democracies clothe their chosen leaders with temporary rank. Before misconstruing the poetic aphor- ism of Robert Burns, "rank is but the guinea's stamp," remember that the guinea is only fluctuating bullion until the stamp of authority of government can be invoked. Let me now enunciate a principle, which is this: "In modern organization the chief clerk as we now know him has no place. When the stage is reached that such a chief clerk seems to be needed, there should be another assistant this or that." Mind you, I do not say assistant to, because that little word "to" may give a sent-for-and-couldn't-come appearance, Nearly 46 LIMITATIONS OF CHIEF CLERK SYSTEM. every week you notice the announcement of the appointment of an old chief clerk to the position of assistant to somebody. This is en- couraging, since it permits him to do business in his own name. It also shows that railway officials are waking up to the distinct limita- tions of the chief clerk system. The discourag- ing feature is the failure to profit by centuries of experience of such well-handled activities as the Navy and the merchant marine. At sea the executive officer ranks next below the captain and is in effect, though not in name, the lat- ter's chief of staff. The captain's clerk or the purser cannot hope to become executive officer and then captain without getting outside and working up through the deck. When railway executives and directors become better students of organization, the science of human nature, their stockholders will pay for fewer unneces- sary experiments. One railway profits by the discoveries and mistakes of another, as to bridges and equipment, but rarely as to organ- ization and methods. The United States Army, copied largely from the English, has the assistant to system, calling such officer the adjutant. The rank of the adjutant has been raised to captain, or 47 LETTERS FROM A RAILWAY OFFICIAL. rather the grade from which the colonel can select his adjutant has been elevated to that of captain. The adjutant has thus gained, and many military men hope that he will eventually be the lieutenant-colonel, and as in the Navy, be the executive officer, and, in effect, chief of staff for the colonel. Since no officer of the Army or Navy permits another to sign his name the adjutant uses his own autograph sig- nature, but preceded by the phrase, "By order of Colonel Blank"; objectionable because it is sometimes a legal fiction. The adjutant system in the army works better than the assistant to system on the railroads, because the adjutant is relatively better trained for his position. Not only does the adjutant know office work, but he has learned practically to perform every duty required of non-commissioned officers and private soldiers. Very few assistants to could run a train, switch cars, handle a locomotive, or pick up a wreck. This is why soldiers and sailors have more faith in the ability of their officers than railway employes have in that of their officials. He who would be called Thor must first wield Thor's battle axe. We should office from the railroad rather than railroad from the office. 48 LIMITATIONS OF CHIEF CLERK SYSTEM. Since these things are so, as runs the old Latin phrase, I would recruit my office assist- ant from the road, from the head of a so-called department, from an official who has gained a face-to- face experience in handling men. The old chief clerk is the first man I would con- sider for appointment as one of my junior assistants. I would so assign him that he would get outside experience. Sunburn and redness of blood sometimes go together. For the pink tea contact of the telephone, for the absent treatment of the typewriter, I would ask him for a while to substitute the strong coffee of the caboose and the surprise test of the through freight. Office railroading has its origin in the mistaken theory of overspecialization, that office work is a highly-segregated specialty be- yond the ken of the average man. The world advances, and as education becomes more gen- eral, as tenure is made more permanent, and employment more attractive, we can impose increased requirements. Suppose that it all could be so worked out that a generation hence no man would expect to be a railroad clerk until he had served some such outside appren- ticeship as trackman, brakeman, switchman, or fireman, etc. This would mean that in an or- 49 LETTERS FROM A RAILWAY OFFICIAL. ganization like the post office department every clerk in the department in Washington would have been graduated from some such outside position as letter carrier, railway mail clerk, country postmaster, rural free delivery carrier, etc. Every clerk in the war department would be a soldier and every clerk in the navy de- partment a sailor. Then the papers that the clerk handled would have a living meaning for him. His action would be more intelligent. Pardon me a moment while I shake hands with the highly-conventional gentleman who is ap- proaching Mr. Cant B. Dunn. No introduc- tion is necessary. We have met all over the United States, in Canada and in Mexico. We usually differ, but never quarrel, because each is so necessary to the other. Sure, my boy, all these things can't be done right away quick, or before the Interstate Commerce Commission again asks for in- creased authority and larger appropriations. I do not expect to live to see the consummation, but hope that you may. I do expect to survive long enough to see a good start made along such rational lines of elasticity. Because we cannot accomplish it all at once is no reason for not making an intelligent beginning. If a 50 LIMITATIONS OF CHIEF CLERK SYSTEM. compromise with principle is ever advanced its advocates should be prepared to pay the ulti- mate cost. Those questions on which the Federal Constitution compromised required the expensive settlement of civil war. Otherwise the Constitution has been elastic enough to cover nearly fifty states as fully as the original thirteen. It is even strong enough to with- stand the latest political fallacy, the recall of the judiciary, as solemnly proposed out here in fascinating Arizona. Remember always, my boy, that although the good old days have completed their runs, there are better days arriving and still on the road; that from beyond the terminal at the vanishing point of the perspective the best days are coming special because no railway time-table is big enough to give them running rights. Affectionately, your own, D. A. D. LETTER VI. PREVENTING INSTEAD OF PAYING CLAIMS. Phoenix, Arizona, May 13, 1911. My Dear Boy : You ask me to give you my views on the handling and settling of freight claims. I restrain my impatience and consequent de- sire to jump on you hafd. Allow me, there- fore, with expressions of distinguished con- sideration, to invite your esteemed attention to the fact that your valued request contains no mention of an intelligent desire for possible en- lightenment on the most important feature of the problem, namely, the prevention of claims, the eradication of causes. A railroad is a complex proposition. Sel- dom can we discuss one of its problems inde- pendently. So ramified are its activities that the penumbra of one shadow coincides with the outline of the next. Studied from the broad- est view of railway administration, freight claims are found too often doing duty as a shadow which hides the real substance, poor 52 PREVENTING vs. PAYING CLAIMS. operation. It was formerly the almost uni- versal practice on American railways for freight claims to be handled and settled by the freight traffic department. It was felt that the man who secured the business, who dealt with the shippers, was the man to placate the claiming public. No, this did not always lead to rebating. It placed before the man hungry for gross revenue a temptation which he often resisted. Since the 'passage of the Hepburn act and the consequent inspection of claim dis- bursements by the Interstate Commerce Com- mission, the general trend of railroad practice has been to place the so-called freight claim de- partment under the accounting department. Railroads are waking up to the fact that the new order of things means more than an ac- counting proposition; that in government reg- ulation and supervision the whole matter of railway administration is involved. What we technically term "operation" is the largest of the component elements of administration. The tendency of overspecialization has been to leave to the accounting or the legal depart- ment the matter of relations with the various branches of government, both state and federal. Since a part can never equal the S3 LETTERS FROM A RAILWAY OFFICIAL. whole the results have been disappointing. Railroads are learning by costly experience that traffic men and operating men must have an active part in these vital relations. Govern- ment in the long run reflects the spirit of its people. The American people as a nation are positive and constructive. The training of railway lawyers and railway accountants is often negative and resisting. The general counsel and the general auditor are inclined to tell us what we can not do. The traffic man- ager and the general maanger, on the other hand, tell us what we can do. Out of it all should come a well-balanced administrative machine. We need the whole machine, not a specialized part, the positive as well as the negative elements, when we move alongside the reciprocating engine of government. Again, putting a man in the accounting de- partment does not make him any more honest than the rest of us. There is more logic in taking freight claims away from the traffic de- partment than there is in placing them under the accounting department. The traffic man, the accounting man, or the legal man can settle or refuse a claim. None of these can eradicate its cause. Only the operating man can do this. 54 PREVENTING vs. PAYING CLAIMS. Many roads cling to the belief that their won- derful interior combustion and hot air harmony give the operating department sufficient in- formation to serve the practical purpose. My observation has been that this information is not sufficiently fresh; that it trails along too far behind the actual transaction. Some roads, like the Southern and the 'Frisco, have organ- ized special bureaus in the operating depart- ment to minimize the causes of freight claims and to follow up discrepancies while the case is fresh; in other words, to investigate before the claim is filed. Sometimes this duplicates the work of the freight claim office and some- times it does not. So bad have been freight loss and damage conditions on most American railroads that al- most any kind of attention has resulted in im- provement. Nearly every road can cite figures in defense of its particular treatment of the situation. There are many good ways. In the absence of an absolute unit of comparison the best way must be largely a matter of opinion. To me the logical and practical prin- ciple has been discovereed by two of the best managed railroads in the country, the Chicago & North- Western and the Chesapeake & Ohio. 55 LETTERS FROM A RAILWAY OFFICIAL. These roads, among others, place their freight elaims under the operating department, thus reserving the hair of the dog for treatment of its bite. With such a system the general man- ager controls the disbursements to operating expenses for which he is responsible. Under other systems the general manager accepts charges which he does not directly control. Some roads have endeavored to correct this last defect by requiring claim vouchers to be signed by the general manager and the division superintendent. This beautiful example of circumlocution is expensive. There are only twenty-four hours in a day, and even claim papers can not be handled for nothing. Fur- thermore, the claimant himself refuses to see the beauty of delaying payment to carry out a theory. In some states he has secured legisla- tion penalizing railways for delay in settling intrastate claims. Can you blame him? The claimant aforesaid may happen to be a coun- try merchant waiting for the way freight to come in. It brings him six boxes of groceries. In his presence, and that of the agent, the way freight brakeman drops and spoils a box. On many roads, not only is the agent not allowed to pay for this spoiled box, but is expected to 56 PREVENTING vs. PAYING CLAIMS. require the indignant consignee to pay the freight on all six boxes before removing the other five. The consignee is told to file a claim, which then makes its weary round through the circumlocution office where clerks are called investigators. Such companies say in effect to the agent : "Yes, you are a good fellow ; you get us a lot of business; you handle thousands of dollars of our money; you represent us in many things; you must understand, however, that a freight claim is a specialty requiring ex- pert advice ; a bad precedent might involve us in the future; you know, too, we might be criticised as opening the way to grafting by some other agents if we let you pay out money without authority from the accounting depart- ment; yes, we like your work and expect to promote you in the sweet by-and-by," etc., ad nauseam. Fortunately, these narrow views are giving place to more enlightened practices. On several railways in Texas most station agents are authorized to settle instanter certain classes of palpably just claims up to $20 or $25. Among the practical advantages of claim control by the operating department are quicker recognition of lax methods causing claims, better discipline and morals of train 57 LETTERS FROM A RAILWAY OFFICIAL. and station forces, prompter settlement, and greater attention to seal records. The Chesa- peake & Ohio makes surprise tests by breaking a seal and resealing the car with a different seal to see if the next man copies the last record, or actually takes his seal record from the car. This road also appeals to the human element. Claims settled are tentatively charged to the conductor or agent apparently at fault, and he is given an opportunity to explain. This is not real money, but a combination of Brown sys- tem, Christian Science coin, and 1907 clearing house certificates. The practical effect is very real, however. Each man learns to feel a re- sponsibility which is reflected in a desire for a clean record. The general claim agent, who is under the general manager, sends monthly to each division superintendent a list showing the name of every freight conductor on the di- vision, with number of claims, if any, charged to him on account of pilferage from train, rough handling, etc. The local divisions of the Order of Railway Conductors have been inter- ested and feel some responsibility in keeping the work of their members upon a plane above the imputation of collusion with pilferage. Seek, my boy, to develop the higher natures 58 PREVENTING vs. PAYING CLAIMS. of your men and you will be astonished at the response. Let them know that you know what they are doing, and it becomes easier for them to withstand temptation. Freight claims are a fine example of an ex- aggerated specialty resulting in unnecessary centralization. The whole proposition can be decentralized for the good of the service. Be- cause the division superintendent can not well settle interline claims of other divisions is no reason why his forces should not settle such local claims as concern his division. A thorough study of freight claims will bring you early to a consideration of personal injury, stock and fire claims. The fad has been on many railroads to take these items of operating expenses away from their former lo- cation in the operating department and give them to the legal department. This exagger- ated view of the laws of liability is partly re- sponsible for the growth of the damage suit industry. It is another case of considering a part of the railway at the expense of the whole. We need legal advice and expert knowledge. The true function of the expert and the special- ist is to see how much working knowledge he can impart to the layman for everyday use and 59 LETTERS FROM A RAILWAY OFFICIAL. reserve himself for the real complications which, if his tutelage has been sound, the lay- man will quickly recognize and bring back for expert assistance. Not long ago I happened near a freight wreck. One of the cars in the ditch contained an emigrant outfit in charge of a man. This man was bruised, but not seriously injured. With the superintendent and the wreck train came a specialist, a claim adjuster for the legal department. He could settle only the personal injury. The damage to property was a freight claJR^and belonged to another department, the accounting, not formally represented at the im- promptu function, and over which the superin- tendent as master of ceremonies had no juris- diction. The various items of operating ex- penses involved on this occasion were in a de- cidedly diverged condition. What the spirit- ualist medium calls the control was in this case the office of a busy president some fifteen hun- dred miles away. Of course, the company spirit and common sense guided the superin- tendent, and he made the best of circum- stances; perhaps risking criticism and censure for crossing sacred departmental lines. What do you think of a system that breaks down in 60 PREVENTING vs. PAYING CLAIMS. emergencies? Is not an emergency a test of a system, a proof of its elasticity? Can we de- velop the highest efficiency of superintendents when we, the executive and general officers, place upon them the burden of departing from a system that fails to meet their practical prob- lems ? Is it not a species of unconscious admin- istrative cowardice for boards of directors to impose implied and practical responsibility without conferring corresponding authority? Can such questions be ignored as exceptional, trifling, and captious? Do they not reach to the heart of railway organization and ef- ficiency ? Will the railways correct such errors themselves, or will they await once more the remedy by legislatures and commissions? If a study of conditions does not convince you theoretically that one claim bureau should handle freight, stock, fire, and personal injury claims in short all claims covering injuries to persons and damages to property go down on the Chesapeake & Ohio and watch them do it practically. Instead of several specialists du- plicating each other's itineraries, you will find some all-round claim men doing a variety of practical stunts. When they do strike a really different and highly technical case, they utilize 61 LETTERS FROM A RAILWAY OFFICIAL. the services of their best specialist in that par- ticular line, not infrequently the general claim agent himself. Overcharge claims are very properly handled under their traffic auditor, being a matter of correction and not of operat- ing disbursement. Were it up to me, I would make the general claim agent an assistant gen- eral manager, so that in claim matters he would have rank and authority superior to the division superintendent's. The division claim agent I would make an assistant superinten- dent, so that in claim matters he would have rank and authority superior to all employes on the division. On this last division feature I once con- vinced my old friend, Cant B. Dunn, by a long, practical test. Affectionately, your own, D. A. D. 62 LETTER VII. THE CHIEF OF STAFF IDEA. San Antonio, Texas, May 20, 1911. My Dear Boy : Let me tell you something about a wonderfully effective human machine, the Confederate Army. I sit facing a Con- federate monument which depicts a self-reliant son of the Southland, the type of man real rail- way training helps to perpetuate. Hard by is a shrine to valor, the Alamo, a reminder of the duty of altruism which an individual owes to his fellows. Fifty years ago two great armies were or- ganized to fight to a practical, working conclu- sion some of the indefinite compromises of the Federal Constitution. Each army was sup- ported by the intelligent spirit of an aroused people. Each sought in its organization and operation to give the most effective expression to that spirit. Jefferson Davis and his advisers sought to profit by the experience of the old United States Army and to avoid inherent weaknesses in its organization. So the Con- federate Congress created the grades of gen. eral and of lieutenant general, in order that a 63 LETTERS FROM A RAILWAY OFFICIAL. general might command a separate field army, a lieutenant general a corps, a major general a division, and a brigadier general a brigade. By thus more exactly defining official status, jealousies were minimized. Until Grant was made lieutenant general in 1864, the Federal Army had only two grades of general officers, major general and brigadier general. This led to confusion, to bickerings, and to petty jeal- ousies. Since a major general might command such distinct and self-contained units of organ- ization as a division, a corps, or a separate field army, numerous special assignments by the President became necessary. The Confederate Army had another feature of organization that was epoch-making. Sam- uel Cooper had been adjutant general of the United States Army, with the rank of briga- dier general, issuing orders over his own sig- nature from Washington "by command of" somebody else Brevet Lieutenant General Scott or the Secretary of War. Because of his acknowledged efficiency in office work and administrative routine, Samuel Cooper was made adjutant general and inspector general of the Confederate Army. Did they give him the rank of brigadier general? No, sir; they made 64 THE CHIEF OF STAFF IDEA. him a full general, and number one on the list, senior to Albert Sidney Johnston, Robert E. Lee, Joseph E. Johnston and G. T. Beauregard, who, as generals at one time or another, com- manded separate field armies or territorial military departments. General Cooper at a desk in Richmond was the ranking officer of the Confederate Army. This detracted not one iota from the fame of Lee, the great soldier and the first gentleman of the South. On the contrary, the increased efficiency due to receiv- ing instructions from a real superior, not under-strappers or chief clerks, made greater the reputation of Lee. From one viewpoint General Cooper was a high-class chief clerk for his President and the Secretary of War. From a broader view he was their technically trained, highly efficient chief of staff. The Confederate Army gave in effect, but not in name, the chief of staff idea to the world as a great object lesson in the applied science of organization. Historians say that Jefferson Davis, himself a graduate of West Point, a veteran of the Mexican war, and Sec- retary of War in the cabinet of Pierce, med- dled too much in military affairs when as Pres- ident he should have been attending also to LETTERS FROM A RAILWAY OFFICIAL. civil affairs. Be that as it may, the organiza- tion was elastic enough to meet just such va- riations of personal equation. Whether the President, the Secretary of War or the adju- tant general (chief of staff) acted in a par- ticular case, the subordinate knew who took the responsibility and that the action came from a real superior in rank. The Confederacy fell. The passions of the time, the shortsightedness of prejudice, pre- cluded the adoption at that time by the United States of any feature of the Confederate or- ganization, however meritorious in principle and practice. It remained for the Germans, already applying the idea, to dazzle the world in 1870 and conquer France by the work of their general staff and its able chief, von Moltke. Not until after the costly lessons of the little war with Spain in 1898 did our Con- gress wake up and give the United States Army a general staff and a chief of staff. The new law includes several desirable features of elasticity. Among these is a provision for the selection by each administration of its own chief of staff. A permanent chief of staff might be an obstructionist or might become too perfunctory in compliance. The law wisely 66 THE CHIEF OF STAFF IDEA. limits the selection of a chief of staff to about twenty general officers. This prevents playing untrained favorites. It permits any passenger conductor to be made superintendent, but for- bids selecting an extra brakeman or the call boy. Furthermore, if conditions change or a new administration arrives, the chief of staff is not penalized for efficiency by losing out en- tirely, but reverts to his permanent status ; the superintendent holds his rights as a conductor and bids in a good run according to his per- manent seniority. This feature of good organ- ization, the conferring of definite local superior rank, and the protection of the incumbent from unnecessary degradation, was discovered cen- turies ago by another effective institution, the Catholic church. Life is a composite. The Army, like several railways, has been waking up to the fact that a lesson can be learned from the civil courts. A large city may have several courts and judges. A judge may sit for one term in the equity court, then in the criminal branch, and next in a court en bane. All the time there is only one office of record, one clerk of the court, with as many deputies as may be found neces- sary. When one judge wishes to know what 67 LETTERS FROM A RAILWAY OFFICIAL. another judge has done, the former does not write the latter a letter to inquire, but sends to the clerk's office and gets the complete record up to date. Are the railroads above copying sound working principles of efficiency from such tried institutions as the Army, the Navy, the civil courts and the churches? Certainly not, as some roads are showing in a highly practical way. Such movements as these are but expres- sions of a cosmic tendency, greater and more powerful than any one branch of human ac- tivity. Such trends of progress are noted by observers who happen to be favored with a view from the watch towers and who are able to make suitable adaptations because they real- ize that ideas are greater than men, that prac- tical devices are greater than their inventors. Sound ideas often depend for their develop- ment and permanency as working practices upon some great exponent of acknowledged ca- pacity for leadership. In 1870 Bismarck had baited on the French and von Moltke had planned their discomfiture. In 1870 General Robert E. Lee, entering upon the last year of his life, was president of Washington and Lee University at Lexington, Virginia, where 68 THE CHIEF OF STAFF IDEA. Colonel Allan, of Stonewall Jackson's staff, was a prominent professor. There came to sit at the feet of these great teachers a mere boy in years, but an adult in intellectual grasp. This callow youth was of German lineage, but born and reared in New Orleans, a city stamped with the civilization of the French. Perhaps this modest youngster dreamed that twenty years later he would be a great railroad en- gineer hardly, though, that in forty years he would, as a great railway operating man, be called the von Moltke of transportation. Strange, indeed, that this von Moltke, Julius Kruttschnitt, should find his opportunity for highest development under the Napoleon of our profession, Edward H. Harriman, himself among the last of the feudal railway barons. Stranger still that as this Napoleon was pass- ing his von Moltke was starting the railways away from feudalism in interior administra- tion by introducing within the latter's own sphere the chief of staff idea of the Confeder- ate, the German, and the American armies. For, my boy, the unit system of organization on the Harriman Lines, of which you have read more or less, is primarily a substitution of the modern chief of staff idea for the out- 69 LETTERS FROM A RAILWAY OFFICIAL. grown, dwarfing, irrational government by chief clerks.* The unit system of organization requires that an official, whether the head of the unit or an assistant, shall, when absent on the line, be represented at headquarters by the senior or chief assistant of the unit. Such senior or chief assistant is in effect, though not in name, the chief of staff. Normally, this senior is num- ber one on the list of assistants, but whoever is so acting becomes, as above explained, the senior for the time being, and when relieved reverts to his permanent place on the list. Ro- tation for this chief of staff depends largely on the personal equation of the head of the unit and of his various assistants. In the last two years some divisions have not rotated the chief of staff at all. One superintendent who credits the system with increased supervision and notable decreases in expenses is now rotat- ing his assistants in the senior chair every two weeks. There are diverse views on the subject of ro- tation in general. My own opinion is that it may or may not be desirable. I incline rather * See appendix for a description of the unit system of organization. 70 THE CHIEF OF STAFF IDEA. to rotation because it seems to be a biological concomitant of rational evolution. Nature ro- tates her seasons and her types. Where, as in the tropics, there is less rotation we find more stagnation and quicker death. Many soils are impoverished by neglect of proper crop rota- tion. The other day in a terminal, I found a superintendent lately rotated, like a Methodist minister, from another division. Favored with a fresh viewpoint, Jie was having switch en- gines give trains a start out of the yard, and was taking off a helper engine which for years had seemed an unavoidable expense. For what was in this particular instance a case of over- specialization he was substituting engines which could more economically perform the dual functions of switching and of pushing. Speaking of yards, see if you have not some bright fellows on your staff who can figure out a car record that can be taken by the me- chanical men, the car inspectors, that will an- swer all the purposes of transportation, includ- ing claims. Instead of two sets of specialists, car inspectors and yard clerks, partly duplicat- ing each other's work, see if you cannot de- velop one set of all 'round men with some in- terchangeability of function. No, you cannot LETTERS FROM A RAILWAY OFFICIAL. do it all at once. Even if you have a workable scheme it will take a long time to establish. The Brown system of discipline required nearly twenty years for its complete extension to prac- tically all American railroads, although in suc- cessful operation for nearly a hundred years at the United States Military Academy at West Point. The demerit system is better handled at West Point than is the Brown sys- tem on railways. This is because most of the officers are relatively better trained than rail- road officials, having all been through the mill themselves. Better training cultivates the judi- cial quality. Too often the number of Brown- ies does not depend upon a fixed scale for a like offense, but rather upon how mad the superin- tendent is or on how hard he has been pounded by the typewriter in the offices above. Before you condemn any system be certain that its apparent shortcomings are not the fault of your own interpretation and administration. We used to speak of engine failures alone. Nowadays we distinguish as between engine failures and man failures. Likewise there is a difference between a system failure and a man failure. Affectionately, your own, D. A. D. 72 LETTER VIII. THE UNIT SYSTEM. Galveston, Texas, May 27, 1911. My Dear Boy : We were talking of the unit system of organization. There is little that is new about the system. Like many useful things in this world, it is mainly an adaptation of some very old principles and practices. From one viewpoint it is a rational extension of the simple principles of train dispatching. The standard code does not attempt to supply the place of judgment in a train dispatcher. It does not tell him when to put out a meet or a wait order. When his judgment dictates the necessity for any particular action, the standard code comes into play by prescribing forms, by imposing checks and safeguards, by simplifying methods, and by unifying prac- tices. This gives greater opportunity for ini- tiative and originality on the part of the dispatcher by making routine the detailed por- tion of the process. He has more time to think. 73 LETTERS FROM A RAILWAY OFFICIAL. Because the unit system leaves so much to the thinking capacity of the men below, some people have found it difficult to understand. Many codes of organization attempt to cover in advance all the various cases that may come up. The unit system enunciates principles and prescribes methods, but leaves independence of action to the man on the ground. He is for the time being the judge as to what principle to apply. When men are carefully trained their first impulse is to do the right thing. This impulse has been dwarfed and deadened on many railroads by artificial restraints which make a man doubtful of his authority. The unit system reverses some old presumptions and puts the burden of doubt upon him who questions the official authority. We have to take human nature as we find it, not as we think it should be. The master mechanic or the division engineer is riding on the rear of a train, at the company's expense, and tells a young flagman that the latter did not go back far enough. If the flagman does not tell the official to go to h , the train- master probably will. The trainmaster says, "This is my department, you have interfered with my man." That is the old feudal concep- 74 THE UNIT SYSTEM. tion. He is not my man but the company's for service, and his own for individuality and citizenship. Let the master mechanic or the division engineer of many years' service re- port the flagman whose tenure may have been very brief. Human nature is such that the trainmaster, stung by an implied reflection, constitutes himself attorney for the defense. The papers grind through the baskets of the chief clerks. By and by, when everybody con- cerned has forgotten the incident, the papers come back with assurances of distinguished consideration and politely intimate that the case was not quite as bad as represented. The old official, in a measure discredited, soon stops concerning himself with flagmen. The man- agement, the stockholders, and the public lose just so much possible protection through in- creased supervision. The salary and the ex- pense account of the traveling official go on just the same. On the Harriman Lines the master me- chanic, like the division engineer, has the rank, title, and authority of assistant superintendent. Mind you, it is not assistant superintendent in charge of thus and so, but just assistant super- intendent. An attempt to define duties in a 75 LETTERS FROM A RAILWAY OFFICIAL. circular of appointment might imply that all the responsibilities not enumerated would be necessarily excluded. So the assistant superin- tendent quietly speaks to the young flagman, who profits by the instruction, and the incident is closed without recourse to the typewriter. For the technical brief to the Supreme Court there is substituted the rough and ready but surer justice of the police magistrate. The employe still has the right to appeal just as he had before, but seldom or never does he exer- cise it. There are, of course, intelligent limi- tations to all authority. The mechanical as- sistant, or the maintenance assistant should not, for example, order the flagman to buy a new uniform. Common sense and courtesy have proved effectual safeguards against abuse of authority. The underlying principle that responsibility breeds conservatism in action has operated to prevent those unseemly clashes of authority which many predicted. The good sense of the superintendents has served as an effectual bal- ance wheel to maintain smooth running. The unit system does not deny or dispute the neces- sity for specialized talent for technical activi- ties. It insists, however, that increased super- 76 THE UNIT SYSTEM. vision of the countless phases of operation can be gained by utilizing all the official talent available. In many cases such increased super- vision is a by-product. The maintenance assist- ant is inspecting track. The train stops. He cannot resume track inspection until the train starts. Meantime, he may be able to find time to see if the conductor receives his orders promptly, if the dispatcher uses good judg- ment, if the station forces are alert, if the pub- lic are being well handled, if the news butcher has his wares over several needed seats in the smoking car. He may even go to the head end and tell the eagle eye how the black smoke indicates that the fire boy could save his own back and the company's good money by less liberal use of the shovel. Anything very tech- nical requiring the presence of specialists for all these things? Of course, if a special prob- lem develops, such as a badly adjusted draft, it may be necessary later to get the more expert attention of a mechanical assistant. Often, however, before this stage is reached there can be rendered much economical first aid to in- jured operating expenses. This increased su- pervision, be it much or little, is clear gain for the company. It means more effort for the of- 77 LETTERS FROM A RAILWAY OFFICIAL. ficial, but that is what he is paid for. It is usually better in zero weather to have the old master mechanic and the old traveling engi- neer as assistant superintendents riding differ- ent trains on the road than to have them sitting in a comfortable office writing letters to each other about engines that failed last week or last month. Once upon a time a traveling engineer talked through a telegraphone to a dispatcher. The latter requested the former to have the freight train pull into clear to let another train by. The conductor was not in sight. He was probably in the caboose making out some of those im- aginary reports about which grievance com- mittees tell us and which are most in evidence during investigations of head-end collisions. So, this member of the ancient and honorable order of attorneys for the brotherhood told the brakemen where to head in. Whereupon with much professional profanity the train- men declined, saying that no traveling engineer could tell them what to do. The superintend- ent took the brakemen out of service. They got back only on request of the traveling en- gineer to whom they apologized. While au- thority was vindicated, an undesirable situa- 78 THE UNIT SYSTEM. tion had been developed. No matter how em- phatic the vindication may be, it is as bad for discipline to have authority questioned as for a woman to have her virtue impugned. Since then the unit system on that division has made the traveling engineer an assistant superintend- ent, and the question of authority does not arise. Out in that part of the country a fast train was pulling out of a terminal. The train- master was out on the road. His clerk signed the trainmaster's name to a message, telling the old passenger conductor to make a stop to deliver what to the clerk was an important letter, ran down and handed both to the con- ductor. The latter demurred, saying that under his running orders the stop would make him miss a meeting point. The clerk insisted and when the conductor disregarded the mes- sage the latter was taken out of service. This was done on the old feudal theory that the trainmaster's name and position must be re- spected. By the same reasoning a bank teller should honor a check on which he knows the signature is forged. Since then the unit sys- tem on that division requires everyone to do business in his own name. Employes obey the 79 LETTERS FROM A RAILWAY OFFICIAL. instructions of men shown by name on the time card, and are not at the mercy of clerks. The old trainmaster's name is more respected be- cause it is signed only by himself and is not cheapened by use by Tom, Dick and Harry. (Anvil chorus: "Such things couldn't happen on our road." Perhaps not, but they do just the same, in a greater or less degree. ) When a conductor reports for train orders he has a right to know that a competent dis- patcher is on duty. He cannot dictate, how- ever, what particular dispatcher shall work the trick and give him his orders. The unit sys- tem carries this same principle to correspond- ence and reports. It denies the right of the employe to dictate what official shall handle a certain letter or report, under normal condi- tions. The report is addressed impersonally "Assistant Superintendent," and the office de- cides what official is most available. As a mat- ter of common sense the expert in that line will be utilized. In his absence, however, his feudal representative, a clerk, will not act for him. The clerk may prepare the papers, but final action can be taken only by an official. Highly technical problems are sent to the ab- sent official on the road or await his return. 80 THE UNIT SYSTEM. Each assistant may issue instructions, in his own name, to such subordinates on his own pay roll as roadmasters under the maintenance assistant, foremen under the mechanical assist- ant, yardmasters under the transportation as- sistant, etc., etc. Before these instructions leave the office, they should pass, like all cor- respondence, over the desk of the senior assist- ant (chief of staff) for his information and for the prevention of possible conflict and confu- sion. Here, again, is a principle of train dis- patching. All orders concerning the running of trains go over the dispatcher's table. Should there not be a similar check imposed on official instructions and information imparted to hun- dreds of delicate, sensitive, human machines, made in the image of God ? Why are not communications and reports addressed "Superintendent?" Because there would be an implied obligation for the superin- tendent to act. This obligation cannot be ad- mitted under normal conditions. Therefore, to be honest and straightforward, the address is "Assistant Superintendent." Under this sys- tem the employe knows that some assistant will see his communication, not the clerk of somebody else. If the employe desires a par- Si LETTERS FROM A RAILWAY OFFICIAL. ticular official to see his communication, he makes it personal by prefixing that official's name. Any employe can address the superintendent by name for the same good reason that the humblest citizen can appear in his own behalf in any court in the land. Though the court is open, neither the citizen nor his attorney can normally dictate what judge shall hear his case. Authority is abstract and impersonal. The court exists if the judge is dead. The exercise of authority is concrete and highly personal. The court is silent until the judge speaks. Conversely, the superintendent as the head of the unit may address any employe direct with- out going through the assistant on whose pay- roll the employe is carried. Common sense and the personal equation of the officials con- cerned indicate how far this elastic feature can be carried. Courtesy requires prompt notifica- tion of the assistant concerned. Officials have superiors, and to attempt to convey the idea that each is a feudal chief, when in reality he is not, can result only in self-deception. The practice of each division superintendent re- issuing verbatim in his own name instruction circulars from the office of the superintendent 82 THE UNIT SYSTEM. of transportation is misleading and ridicu- lous. All instructions from general officers, in- cluding the general manager, should come to employes through the superintendent's office, not only to respect the integrity of the organi- zation unit, but to preserve a history of the transaction in the authorized office of record to get all the runs, including the general manager's special, on the right train sheet as it were. Whoever acts, whether the superin- tendent himself or an assistant, has at hand in one office of record full information for his guidance. You understand that the superin- tendent is boss. He may see any or all com- munications from employes as he thinks fit. Where previously he instructed his chief clerk what to bring to him personally, such instruc- tion he now gives to his chief of staff. An employe who addressed "Assistant Superin- tendent" may receive a reply signed by the su- perintendent himself. This is an honest rec- ord, not a subterfuge. Some assistant, the chief of staff, has handled the paper as well as the superintendent himself. To the subordi- nate the superintendent is normally an inci- dental representative of authority entitled to 83 LETTERS FROM A RAILWAY OFFICIAL. the greater respect to be given his higher rank. To the general offices, and to co-ordinate units, the superintendent is an essential head of a component unit who must not be ignored. Therefore, since there is an implied obligation for the superintendent to answer superior au- thority himself, all communications from supe- rior and co-ordinate authority are addressed impersonally, "Superintendent." A railway is so extensive that the superintendent should spend at least half the time out on his division. In his absence the chief of staff is allowed to communicate with the general offices and other divisions in his own name, but "for the super- intendent." The superintendent may answer from the road himself, but in any case the gen- eral offices know who has really taken action. Going down on the division any assistant may sign, subject to review by the chief of staff. Going up to higher authority only the superin- tendent or his chief of staff may sign. The rights of the individual assistants are preserved by permitting any one to go on record to the general offices when he so desires. He writes his letter, addresses it "Assistant Superintend- ent," and takes it to either the superintendent or chief of staff and requests that it be for- 84 THE UNIT SYSTEM. warded. In this exceptional case a letter of transmittal is written setting forth the views of the superintendent. A cat may look at a king. A meritorious idea should not be throttled be- cause it does not happen to appeal to the next superior. When a division official on any road rides a train, he does not first thing try to tell the conductor what meeting points should be made. He usually says, "Let me see your orders," which is in effect asking the conductor what the dispatcher has said must be done. Pro- tected by this vital information the official may then venture some suggestions. In the prelim- inary lecture explaining the unwritten laws of the unit system the new assistant superintend- ents are cautioned to apply the same principle. They are not to see how much trouble they can make, but how little. If the transportation assistant, for example, pulls up to a water tank at 7 120 a. m. and sees the section men just go- ing to work, he does not jump on the foreman for being late, but quietly asks, "What are your working hours? What time does the roadmaster tell you to begin work?" The moral effect of the presence of an alert, ob- serving official, armed with sufficient authority, 8s LETTERS FROM A RAILWAY OFFICIAL. becomes an asset of value to the stockholders. We have not enough officials to ride every train and cover every point. The more open, intelligent supervision we can get from each official the better should be the operation. Of course, if the officials were not experienced railway men a condition of nagging and raw- hiding might result which would prove fatal. What the unit system does is to try to make potential the latent knowledge and ability which every official possesses in a greater or less degree. The old over-specialized system denies that this stored-up reserve exists to any practicable extent. The fact that the title of assistant superin- tendent is uniform tends to bring out the real individuality of the different assistants. Each has to have his name on the door of his private office. As we hear less and less of "my de- partment 5 ' and more and more of "this divi- sion/* the references to "the trainmaster," "the master mechanic," etc., etc., give way to "Mr. A.," "Mr. B.," etc. The assistant superintend- ents have definite seniority, and when two or more come together under circumstances ren- dering it necessary, as at a wreck, the senior present takes charge and becomes responsible. 86 THE UNIT SYSTEM. Remember that rank and authority can be con- ferred by seniority in grade as well as by grade itself. The scriptural warning that no man can serve two masters is still applicable. In our case the master is the corporation, represented at different times by various individuals clothed with authority. The conductor runs his train under the laws of the land, the policy of the president, the rules of the general manager, the bulletins of the superintendent, the assign- ment of an assistant superintendent, the orders of a dispatcher. He collects tickets and fares as directed by the general passenger agent and reports on forms prescribed by the auditor. The lower we go in the scale the fewer the su- periors with whose instructions the employe comes in direct contact. The trackman knows authority only as its exercise is personified by his section foreman until the paymaster tells him to wipe off his feet before entering to re- ceive his check. Therefore, put out a slow flag against too fast running over such low joints as "one boss," "complete responsibility/' "di- vided authority," etc., etc., until you feel cer- tain just what speed they will stand. Affectionately, your own, D. A. D. 87 LETTER IX. STANDARDIZING OFFICE FILES. Chicago, June 3, 1911. My Dear Boy : It has doubtless occurred to you how worthless as evidence are many of the office files. How can any one tell a year afterward whether the general manager or the superintendent ever saw the telegram on which his name is typewritten ? On most roads any one of a half dozen or a dozen people may have dictated the message. How much better, as under the unit system, to have every man doing business in his own name ! He can then supplement the written record with much more intelligent recollection of events related to the transaction. We dictate the most important telegrams, which pass unquestioned, without an autograph signature. This is common sense and just as it should be. When an unimport- ant letter is written somebody has to get out a pen and sign some name or other. How in- consistent ! Why not, for certain kinds of cor- respondence, let the stenographer typewrite STANDARDIZING OFFICE FILES. the name of the dictating or signing official, and then authenticate with the office dating stamp or a private seal mark ? The office dat- ing stamp should be kept under lock and key in official custody in order that it may be used for authentication, like the seal of a notary public. To save the labor of constant signing I predict that some time we may go back to individual personal seals carried on a finger ring or a watch fob. That is the way they authenticated documents at a time when the gentry felt themselves above learning to read and write. If you have occasion to dictate a message over the telephone from your house at mid- night, do not let the operator imitate your auto- graph signature, but have him print your name with a pen, pencil or typewriter. Also, take good care to have such messages sent to you afterward for you to check. Your time is valuable, but it cannot be put to better use for the company than in insuring the integrity of your individual transactions. It may be that no record whatever is necessary. With all our craze for accumulating files we do not record many telephone conversations. You must be the judge as to whether a record for 89 LETTERS FROM A RAILWAY OFFICIAL. your office is necessary, and in such exceptional cases state your wishes at the time. The farther down the employe the more zealous is he to escape possible censure by preserving un- necessary information. What we need is one complete record of a transaction rather than so many partial records. Many of the tele- grams sent from a superintendent's office should, after sending, go to the main file room for consolidation with related papers under a subjective classification. It is more logical to file certain classes of messages by days in date order. For example, messages relating to train movements should usually be filed in date order since they are supplementary to the train sheets of that particular day, and the date would be the determining factor in tracing the transaction afterward. These two distinct classes of messages should be filed, the one under a subjective classification, the other under a serial classification. The good, old-fash- ioned way of rolling together all the messages of the day and cording them in a pile on the top shelf was all right in the day of wood- burners, but falls short in this day of higher pressures. Remember, too, that the telegraph office is a part of the same establishment. 90 STANDARDIZING OFFICE FILES. Wherefore, make a carbon copy of every tele- gram that is going down the hall to be trans- mitted. If you wish to get real busy and cultivate patience, try to introduce a uniform filing sys- tem in all the offices on the road. Every fel- low will tell you that the system in his office is best. The acid test is: "Will your system fit the president's office?" and the stereotyped reply is, "You see we are very different. Our local conditions are peculiar." So it falls out that when the agent writes his superintendent about office furniture, for example, the agent, if it is a big station, gives the subject a file number. The superintendent gives it a second number. If perchance the general superin- tendent, the purchasing agent, the general storekeeper, the general manager, and the pres- ident should happen to get hold of the papers, each office would affix a different number. You might have on the same railroad as many as seven different file numbers for the same subject. Remember that all filing systems are arbitrary. Whether you designate office furni- ture as seven, eleven, twenty-three, or forty- four, it rests in the breast of somebody to say what that designation shall be. It is like num- 91 LETTERS FROM A RAILWAY OFFICIAL. bering trains, cars and locomotives, we take some arbitrary basis from which we build up a logical classification. Formerly, trains, cars and locomotives were given serial numbers in the order of creation. So were letters in an office. Now the proposition is too big and we assign series of numbers for classifications which are more or less self-suggesting. Any number of men have tried to work out a filing system based on the Interstate Commerce Com-' mission classification of accounts. Any num- ber of men have soon encountered limiting conditions which seem to preclude a satisfac- tory solution. If you had time, I do not doubt your ability to work out the best kind of a filing system, but you have not the time. If you had lived before George Stephenson you might have in- vented the locomotive, but George beat us all to it. If you had time you could work out a table of logarithms, or a table of trigonometric functions. Life is so short that it is better to use the tables that other people have prepared. By the same token, if I were you, I would save my company money by adopting Williams' Railroad Classification. It is an expansive, but not expensive, decimal system suitable for 92 STANDARDIZING OFFICE FILES. everybody from the station agent to the presi- dent. Among the roads that have taken it se- riously are the Baltimore & Ohio, the Delaware & Hudson, the Pennsylvania, and the Harri- man Lines, not such a puny lot. Others say of it as of the unit system of organization: "We are watching its development with much interest." In either case, if the stockholders and directors are complacent, you and I have no kick coming as to the number of years over which this inactive watchfulness may extend. The manifest advantages of a uniform filing classification are the time saved in avoiding duplication of numbers, and the practical familiarity possible to officials and employes of all grades and locations. When a man is promoted or transferred, he does not have to learn a new fil- ing system. Instead of the whole burden of filing being upon a file clerk, everybody can be helping to preserve the integrity and insure the efficiency of the system. It is not neces- sary to sit up nights and memorize filing num- bers. Take the matter seriously, and in a short time you will unconsciously absorb the most important numbers, just as you get trains, cars, and locomotives in your head. Officials fre- 93 LETTERS FROM A RAILWAY OFFICIAL. quently have a disproportionate and exagger- ated sense of the value of their own time. They are paid to think from their presumably wider understanding. If the official by one minute's thought can dictate the file number and later on save several hours of search in the file room, it is his duty to do so. All over the country file clerks tell me their troubles. The burden is, "If you will get the officials to respect the files as much as we respect the officials, it will all be easy." You know, my boy, that there are a whole lot of things that deserve to be taken just as seriously as we take ourselves. Consider this standard code of train rules again. With all its defects and shortcomings it is a vital force. Because it is standard it gains a respect as a result of lifelong drill and discipline of employes, regardless of changes in location or assignment. Therefore, stand- ardize your files, and interest your officials. Rank imposes obligation, or noblesse oblige, as the French say. It is a much easier matter to start a new filing system than is generally supposed. Just begin. It is not necessary to renumber the old files. Give new numbers to all the old stuff that comes in, and in a month or two you will 94 STANDARDIZING OFFICE FILES. probably absorb nearly all that is of current interest. Then store the remainder of the old stuff as a dead file under the old system. Most of the old you will never need, but if you do, as occasion arises, locate under the old system and transfer to the new. If you are putting up a new office building or re-arranging an old one, try and locate the main file room next to the telegraph office. Or put one over the other so that quick communi- cation can be made by some such device as a chute, dumb waiter, or pneumatic tube. Tele- grams received can then be hurried to the file room and related papers attached, when desir- able, without taking the valuable time of an official to send to the file room for them. Here is a place for a really rational conservation of official time. The effect of effort should be in proportion to its intelligence and intensity rather than to its amount. Experts long ago established the fact by time studies, and otherwise, that flat, vertical filing cases are the most efficient and economi- cal. There are a number of satisfactory makes on the market. Like selecting a typewriter, it is largely a matter of personal preferment. The way to beat another man at his own game 95 LETTERS FROM A RAILWAY OFFICIAL. is first to sit in, play and learn. Gamblers would become extinct if all men lived up to this advice. Most railway officials regard organiza- tion as an exception to this precept because, as I said before, nearly every man flatters him- self that he is a born organizer. Before you raise the stakes too high in trying to beat an- other man's game of organization, better first sit in and play it his way. Do not be afraid to trust outlying offices, like those of your superintendents, to run their own files. Have them inspected as often as may be necessary to insure uniformity and ef- ficiency. Do not forbid their adding numbers as emergencies arise. Assemble these new sub- jects periodically, say once in six months, for standardization, and amplify the working num- bers if necessary. You must allow for differ- ences in the human equation. Some men are strict constructionists, and some are broader. Some men classify under a few subjects, while others subdivide to a greater degree. You know the old story of the man who was index- ing and feared that something might be over- looked. So under the caption, "God," he put the cross reference, "See Almighty God." Without a retrospective study of actual per- 96 STANDARDIZING OFFICE FILES. formance you cannot well say just how many sub-numbers shall be used in a given office, any more than you can determine in advance how many train orders a certain dispatcher should put out under the standard code. Among the advantages of using a card index for running a file is that by counting the live cards we know the number of subjects in actual use. This is not inconsistent with book numbers, the book then being used as a reference encyclo- pedia from which subjects are entered on cards as fast as each necessity arises. Remember that while immutable principles must eventually triumph over local conditions, much depends upon considerate application. The local condition didn't just happen, but had its origin in some reason, good or bad, per- haps once convincing but now outgrown. Sometimes the reason is so vital as to be a principle in itself. In our beloved Southland there are local conditions of society which do not obtain elsewhere in this country. True Southerners thank God that human slavery has been abolished. They are striving earn- estly and successfully to adjust conditions created in the birth pangs of a social revolu- tion. Well managed railroads like the Louis- 97 LETTERS FROM A RAILWAY OFFICIAL. ville & Nashville adjust their working policies to these basic conditions. Nearly a decade ago Samuel Spencer, as president, felt that the Southern Railway needed an infusion of new operating blood and a rotation of types, both excellent things in themselves, but, as experi- ence showed, easily overdone and carried to an irrational degree. With native talent at hand for the developing he imported to the proud old civilization of his birth some rough and ready brethren of the western prairies. These earnest men and their followers knew how better than they knew why. They were long on art, but short on science. Demoralization and wrecks, attributed to inadequate facilities, cost the road much public confidence, cost the stockholders hundreds of thousands of dollars, and finally, in an awful tragedy, cost the able president his useful and honored life. Fate ac- corded to outraged sociology and her smaller sister, organization, terrible and undeserved retribution. For, barring this one mistaken policy, Samuel Spencer was an earnest patriot and a constructive railway statesman. As a youth he served in the Confederate army. Through life devotion to his flag was a pas- sion. As a man and a gentleman his character STANDARDIZING OFFICE FILES. was unblemished, his integrity was stainless. Peace to his ashes. Success to the Southern. Its great traffic strength, actual and potential, rests on the broad foundations laid by Samuel Spencer. Prosperity to the railroads. By con- stant search for the lessons of human efficiency to be drawn from such experiences as these, they prove their broad claim to scientific man- agement. Affectionately, your own, D. A. D. 99 LETTER X. THE LINE AND THE STAFF. Chicago, June 10, 1911. My Dear Boy: You have asked me to tell you something about line and staff. The term line is used to indicate the direct sequence to- ward the active purpose of the organization. The line officer exercises a direct authority over men and things. He is the incarnation of administrative action. The staff is supple- mentary to the line as equity is supplementary to law. The staff officer is the playwright. The line officer is the actor. The actor is usu- ally too much absorbed with the technique of his art to write new plays. The line officer, as such, seldom originates new methods, because he is too close to his everyday problems of ad- ministration to cultivate perspective. The ideal staff officer has had experience in the line. The line with a railroad its fighting force, so to speak is the operating department. Be- cause they are staff departments the offices of 100 THE LINE AND THE STAFF. the other three, namely, accounting, traffic, and executive, legal and financial, can close from Saturday noon until Monday morning. The operating department, being the line, keeps the road open and the trains moving. Because of the poverty of our language, we now encounter some difficulties of expression in explaining all the various ramifications of line and staff. A staff department, because of its size, may exer- cise line functions within its own interior ad- ministration. Thus, the auditor organizes his office forces under appropriate chief and subor- dinate officers who, within the accounting de- partment itself, exercise the authority of line officers. When such accounting officers get outside their legitimate sphere and endeavor to act as line officers in the operating department, expensive friction begins. This feature I shall discuss with you later. Suffice it to say that at present the hardest of all problems is to keep line and staff in economical balance. Staff departments then may within themselves exer- cise line functions. This grows rather from necessities imposed by size than from inherent nature of function. The first staff officer was an adviser and exercised no authority, except that of polite inquiry, because there was no one 101 LETTERS FROM A RAILWAY OFFICIAL. whom he could properly command. So the line, the operating department, soon grows so big as to require staff officers within itself, people who have time to think out improve- ments because they are not burdened with ad- ministrative responsibilities. Hold tightly to this thought, my boy. The plane of differentiation between line and staff usually follows a cleavage based upon size rather than upon relative importance of func- tion. The first line officer needed no staff, because he had time to think as well as act for himself. The first superintendent looked after the repairmen himself. The first master mechanic came into being not because he was so different from everybody else, but because the superintendent had become too busy to do it all himself. By and by the master mechanic forgot this basic fact and, unconsciously exag- gerating his own specialty, began to feel that the railway is incident to shops and equipment rather than shops and equipment incident to the railway. The last five years have witnessed a decided improvement in this undesirable con- dition. Just at present the store department Indians are the tribe most in need of being rounded up on the operating department res- 102 THE LINE AND THE STAFF. ervation for eye wash and vaccination against distorted perspective. The operating department of a railroad is, or should be, a real department, complete and self-contained. It consists of such important component elements or branches as mainte- nance of way and structures, maintenance of equipment, transportation, telegraph, signals, stores, purchases, dining cars, etc. Let us not waste any time discussing the relative import- ance of these components. ^Esop centuries ago did that better than we can. His fable of the quarrel among the organs of the human body teaches us that while all are important each is useless without the others. Individually the general superintendent, the chief engineers, the superintendent of motive power, the superintendent of transportation, the superintendent of telegraph, the general storekeeper, and the superintendent of dining cars, are line officers exercising direct author- ity in a defined sequence. Collectively they constitute, for consultation, the general man- ager's staff. When all have the rank and title of assistant general manager, this duality of function is the more pronounced and valuable. For the feudal notion of unbalanced compo- 103 LETTERS FROM A RAILWAY OFFICIAL. nents is substituted the cabinet idea of compre- hensive deliberation, unified administration and devotion to a common purpose. (Anvil cho- rus: "It's that way on our road now/') Per- haps so, but if so, what assurance have your stockholders and the public that the same happy condition will obtain ten years hence? Each head of the nine executive departments in Washington is a line officer running his own department. At the President's cabinet table he becomes a staff officer deliberating upon the problems of all. The attorney-general should be called secretary of law, and the postmaster- general secretary of posts. Then all nine would have the uniform title of secretary. The position of secretary to the president, an assist- ant to proposition, should be abolished usu- ally I prefer the gentler expression, "title dis- continued." His duties should be performed by the secretary of state, who is always the ranking member of the cabinet. In the first cabinet, that of George Washington, the sec- retary of state, Thomas Jefferson, was in ef- fect, though not in name, prime minister and chief of staff. Foreign affairs, then an inci- dental feature, are now so extensive for a world power that we should have another de- 104 THE LINE AND THE STAFF. partment under a secretary of foreign affairs, leaving the secretary of state as senior to be the able righthand man of the president. Here again the size of the proposition, the volume of business, is the proper determining factor. On a small railway the chief engineer as a line officer may be able to do all the engineer- ing himself. As the business grows he re- quires such special staff advisers as an office engineer, a locating engineer, a bridge engi- neer, a tunnel engineer, a signal engineer, etc. Some roads make such engineers line officers by giving them extensive authority over work- ing forces. Usually I believe this is a mis- take. It seems better for these engineers to be real staff officers, thinking, inspecting, warn- ing, instructing (in the sense of lecturing), improving, designing and perhaps sometimes installing, but never directly operating or main- taining. The same general reasoning applies to the mechanical bureau when the business of the chief mechanical officer attains a volume necessitating the help of such valuable staff of- ficers as a mechanical engineer, an electrical engineer, a testing engineer, etc. When the telegraph came to supplement the railway, men stood in awe of its invisible ef- 105 LETTERS FROM A RAILWAY OFFICIAL. fects. Soon the telegraph man said in effect, "This is a wonderful and mysterious specialty which you fellows cannot understand. Let me, the expert, handle it for you." So he seg- regated unto himself a so-called department on the plea that it is so different. By and by the division superintendents woke up to find their telegraph hands tied. Appeals to the general superintendent or general manager proved fruitless. So the division linemen usually re- port directly to the superintendent of tele- graph. They often stay around division head- quarters until the chief dispatcher is able to jar them loose and get them out on the road. Then they go to the scene of trouble, look wise and get the section foreman to dig the hole and do most of the work. Why not, therefore, hold the section foreman responsible for ordinary wire repairs in the first place? Let every section house have a pair of climbers, a wire cutter and pliers with whatever simple outfit may be necessary. If unusual troubles develop or a line is to be rebuilt send the most expert help available, but while on the division let such help be under the authority of the superintendent. We need an expert at the top as chief telegraph and telephone officer to tell 106 THE LINE AND THE STAFF. us all how to do it. The volume of business will usually warrant making him a line officer with the rank and title of assistant general manager. He should not deal directly with operators and linemen any more than a gen- eral superintendent under normal conditions should instruct an individual conductor or a chief engineer communicate direct with a sec- tion foreman. The integrity of the division as an operating unit should be respected. By and by the signals followed the tele- graph. Once more the management allowed the specialist to put it over at the expense of the good old wheel horses in the regular line organization. The embryo signal engineer said, "This wonderful and mysterious develop- ment is really something different this time. It is absurd to suppose these stupid old section foremen can learn anything about electricity." So the signal engineer was allowed to build up a new department. He went out on the ranches or in the barber shops and hired signal maintainers. A new department is liberally treated because its activities are a fad for the time being. These signal maintainers in a few months absorb so much magnetism from the field of the signal engineer that they are 107 LETTERS FROM A RAILWAY OFFICIAL. qualified experts to whom the rest of us must not say anything. They have easier work, if not -better pay, than the faithful section fore- men of perhaps twenty years' service. The old section foreman has a "savey" of the rail- road business, an intuitive knowledge of the requirements of train movement that it will take the fresh young maintainer years to ac- quire. Then we wonder why it is so difficult to secure loyal section foremen. Sometimes a belated effort has been made to let in the sec- tion foremen on the signal game. It is diffi- cult, however, to get the signal people to take an appreciative and sympathetic interest in men who are not in "my department." There- fore, to prevent your track forces being thrown out of balance it will be better for a few years to keep the signal engineer on most railways as a staff officer without permitting him a line organization for operation and maintenance. Say to your roadmasters and section foremen that they will, at the company's expense, be given instruction in signals. When the signal engineer, the expert, pronounces them quali- fied by examination or otherwise, let them understand that there is a small automatic in- crease in pay. Transfer to branch lines the 108 THE LINE AND THE STAFF. few who prove hopelessly deficient. The track laborer who can qualify to look after a par- ticular signal is worth a few cents more a day to the company and should be so advised. If you start with the presumption that the man below is too dumb to learn you handicap him and probably doom him to failure. If you make him believe that he can learn what men of the same class around him are learning, that you, his elder brother, are in duty bound to help him, you will be astonished at the re- sponse of his latent intelligence. The great managers of the feudal period were forceful drivers. The great managers of to-day and to- morrow are great teachers, the greatest of all experts, because they show the man below how to do it. Lots of men know how. A good many know why. Comparatively few have that rare and valuable combination of know- ing both how and why. It is not a happen so, but a response to the law of supply and de- mand, that men of the Woodrow Wilson type are coming to the front in our political life. Getting back to signals. On a road of more than one or two tracks, it may be advisable to segregate your signals from your track. Here again the dividing line is volume of business 109 LETTERS FROM A RAILWAY OFFICIAL. rather than fancied importance of function. Signals are important, but so is the track. Each is an incidental component of railway operation, not the whole operation itself. On most railways the section foreman should be the responsible head of a complete sub-unit for everyday maintenance and inspection, in- cluding track, bridges, fences, poles, wires and signals. This may involve giving him more help or a shorter section. One of the problems of line and staff is to determine what is intelligent rotation between the two. The line officer, dealing with men rather than ideas, may get into a rut of prac- tice which prevents his seeing the beauty of the rainbow which the untrammeled staff of- ficer may be tempted to chase too far. Some officers succeed brilliantly at originating or de- veloping ideas in the staff and fail miserably at handling men in the line. True individuality about which men prate the most is that which is understood the least. Our Army and Navy are insisting that before being staff officers, all officers, except surgeons and chaplains, must first learn to handle men by serving in the line; that crystallization in the staff must be prevented by periodic rota- no THE LINE AND THE STAFF. tion to definite tours of duty in the line. The railway of the future will probably carry extra numbers of line officials in the various grades that some may be available for detail to the staff, that we may better co-ordinate our study- ing and our working activities. People say that our good friend, Harrington Emerson, able and sincere, will unconsciously give the staff the best of it; while your old dad, on an even break, will be found on the side of the line. If they are correct, it leaves plenty of room for the other fellows in between. One of the delightful foibles that make human na- ture so interesting and so lovable is the inborn conviction of the average man that, "though H be a conservative and K a radical, I am always the happy medium." Affectionately, your own, D. A. D. in LETTER XL THE PROBLEM OF THE GET-RICH-QUICK CONDUCTOR. Chicago, June 17, 1911. My Dear Boy: Not so very long ago the wife of a passenger conductor, running out of a large southern city, sought the assistance of her pastor, a noted divine. She was wor- ried by the fact that her husband was stealing the company's money. With a good woman's intuition she knew that the wages of sin is death ; that sooner or later her husband would lose his job and his family its legitimate in- come. To her good, old-fashioned, unspecial- ized conscience stealing is stealing, whether called "embezzlement," "holding out," or "trouble with the auditor." The fearless evangelist shortly afterward preached a power- ful sermon against stealing, and included pas- senger conductors in his warnings. So in- censed was the conductor in question that he announced his intention of disregarding the protection carried by the clerical cloth and of knocking the minister down. When the two 112 THE PROBLEM OF THE CONDUCTORS. met his bluff was called. The conductor, not the minister, came to his knees, not in fighting, but in prayer. Here, my boy, is a canker sore that must be cured. Do not tell me that the Order of Rail- way Conductors is alone to blame. Do not tell me that in the lodge room the order side-tracks the eighth commandment for the working schedule. Do not tell me that the order will expel a member for any other offense rather than for stealing. Do not tell me that our problem is harder and our revenue less be- cause Ed. Clark, the grand chief of an order thus lawless, was appointed by Teddy Roose- velt to sit in judgment on us from the high throne of the Interstate Commerce Commis- sion. Tell me, rather, that we, the official class, are to blame; that we must cease to dodge re- sponsibility. We, the educated and entrepre- neur class; we, the elder brothers of society and industry, cannot shift the burden. Please do not misunderstand me. There are many honest passenger conductors. I have known them on the road and in their homes. Some there are who deserve the more credit for withstanding temptation because of sick- ness or extravagance in the family. There "3 LETTERS FROM A RAILWAY OFFICIAL. are, however, too many dishonest passenger conductors. It is not enough for a man to be honest himself. The complexities of modern life make him more than ever his brother's keeper. He must not only stand for the right but condemn the wrong. The Order of Rail- way Conductors must make the American peo- ple believe that it is a great moral force for honesty in all things. We, the officials, must help the conductors to bring about this happy result. The clerk for the corner grocer will not steal from his employer as quickly as he will from a large corporation. The existence of a per- sonal employer brings home the moral turpi- tude by visualizing the individual wrong com- mitted. Coupled with this higher moral. incen- tive is the fear of detection through close per- sonal supervision and interest. In a large cor- poration we have to approximate to this con- dition. The corporation, an impersonal crea- tion, is vitalized by the men charged with re- sponsibilities. The problem of organization is to give maximum effectiveness to this vitaliza- tion, to utilize to the fullest degree the per- sonal equations of those entrusted with author- ity. Many railroads have lost control of their 114 THE PROBLEM OF THE CONDUCTORS. passenger conductors because of a fundamen- tal misconception of the principles of true or- ganization. On the early railways the superintendent was the only officer the conductor officially knew. The superintendent, close to the presi- dent, was interested in the revenue as well as the disbursement side of the company's ledger. If the conductor stole, if the returns were short on a day of heavy travel, the superintendent was among the first to know it, and to preserve his own reputation, and thereby hold his own job, promptly discharged the conductor. By and by some conductors graduated into super- intendents. This new condition brought a new temptation. The conductor, if allowed to keep on stealing, and if favored with a run where the stealing was especially good, could well af- ford to whack up secretly with the superin- tendent. A few, a very few, superintendents yielded to this temptation. Along came the auditor with his mistaken theory that human nature can be changed and men made more honest by being put in "my department." He said, in effect, "Take this away from the super- intendent, who is dishonest and busy with other things ; let this mysterious specialty of conduc- "5 LETTERS FROM A RAILWAY OFFICIAL. tors' collections be handled by the only honest department." So the superintendent was re- lieved from responsibility for making his. con- ductors render honest returns. He soon lost interest in that feature. The roads grew, and superimposed above the superintendent came first the general superintendent, and then the general manager, both also relieved from this responsibility to which the auditor clung with jealous tenacity. The conductor probably could not have told what principles of organi- zation had been violated. He was the first to see the easier mark the company had become, the first to profit by the serious mistake that had been made. He found that his reports were checked by office clerks hundreds of miles away and entirely uninformed as to current conditions of local travel. The superintendent and the other division officials who rode with him and knew conditions were powerless to check him promptly and effectively because his reports and returns were going to somebody else over the hills and far away. These offi- cials, because somebody else was responsible, did not seem to care very much. So the con- ductor stole under their very eyes and got away with it. Anything like this which begets 116 THE PROBLEM OF THE CONDUCTORS. a wholesale contempt for duly constituted au- thority is demoralizing to general discipline. The labor unions are not alone to blame for the spread of insubordination. All men are students of practical psychol- ogy, whether conscious of the fact or not. The conductor found that to hold his job he must do well those things for which the superintend- ent and the division officials were responsible. So the bigger thief the conductor became the more careful was he about other duties. He was a crank on train rules, perhaps, or made courtesy to the public his watchword. All of this stood him well in hand. Sooner or later the spotter caught him and the auditor re- quested the general manager to order his dis- charge. When this got down to the superin- tendent or the trainmaster the conductor was called in. Instead of being berated for a thief, if he acknowledged the corn, the conductor was discharged, half sympathetically, half apologetically. The division official would have resented the imputation of harboring or encouraging a thief. To him the conductor was an efficient, faithful employe, meeting all requirements of service. If the conductor failed to please somebody else it really must 117 LETTERS FROM A RAILWAY OFFICIAL. be the fault of that somebody or the system. This feeling was not unnatural, since the detec- tion came through a discredited channel, the spotter. Rare are the circumstances where secret service should be necessary. There is something inherently wrong in any system which has to gain routine information by indi- rect methods. The detective should not be nec- essary for checking the good and the bad alike, but only for following up those who become manifestly bad or notoriously corrupt. The most efficient system is that where open check- ing and inspection are so thorough that temp- tation is diminished by the ever-present thought of prompt and sure detection. This desirable condition cannot obtain where the system makes such important officers as the superintendent and the trainmaster unconscious attorneys for the defense, sometimes openly advocating reinstatement of a thief. On the contrary, from its impersonal nature, a corpor- ation must be so administered as to gain the moral effect of every available force for right, to secure the help, however small, of every person connected with the administration. Views of composite efficiency must converge at a point sufficiently near to be of practical 118 THE PROBLEM OF THE CONDUCTORS. value, not so remote as to be of only theoreti- cal interest. No system is perfect. Under any conditions the very size of a railway neces- sitates a trifling allowance for peculation which creeps in. This can, however, be reduced to a negligible quantity. So completely has the old system broken down on most railways there are a few ex- ceptions that it has become a farce. It is a sad commentary on organization that many roads are giving the passenger conductor up as a bad job and putting on expensive train auditors who usually are really not auditors, but collectors. They are called auditors prob- ably because they are under the auditor. It is a principle of organization that the staff as such should never command the line. The staff reviews, inspects, audits, studies, advises, sug- gests and, perhaps, promulgates, but should never execute, except as a representative of the line, the latter being responsible for the results of operation whatever the operation may hap- pen to be. The accounting department is a staff department. When it was given charge of a line function, fare collection, a principle was violated. Ultimate failure of the system was therefore certain and inevitable. The train 119 LETTERS FROM A RAILWAY OFFICIAL. auditor proposition fails to recognize this underlying cause. It further violates principle, intensifies the evil and wastes more money by increasing the number of staff men doing line work. Its direct effects are vicious and its in- direct effects are demoralizing to discipline. How can the young flagman have due respect for his superintendent or other official when he sees the train auditor come to the rear plat- form and demand to see the pass of the offi- cial ? If he is an old flagman it is a little hard for him to see why he himself or his friend, the old station agent, might not have been given this new job with its fine pay. Like his superintendent the flagman may have been in the service twenty or thirty years. The train auditor, only last week a country hotel clerk, mayhap, flashes on them both as a would-be superior being from a better world. Neither of the two can become very enthusiastic in helping the train auditor to protect the com- pany's revenue. It is an awful reflection for the conductors to meet, that, although the railroads of this country are now spending hundred of thou- sands of dollars for train auditors, they are more than getting it back from increased col- 120 THE PROBLEM OF THE CONDUCTORS. lections turned in. Is not this more of a con- demnation of the old system than a justifica- tion of the new? Whether or not the train auditor enters into collusion with the conduc- tor, the former soon learns how easy it is to beat the system. When he does break loose he will be more reckless than the conductor. The latter probably had to work for years as a freight brakeman and a freight conductor to get where he is, and if he loses out may be too old to begin all over again. The train auditor gets his appointment too easily to value it very highly. Offsetting this is the fact that the train auditor is more amenable to some dis- cipline because, as yet unorganized, he can not rely on the support of a labor union to secure his reinstatement. The auditor also has the ad- vantage of examining character from a wider range of selection in choosing his train audi- tors. The train and engine services have been so badly over-specialized, as I shall show you some other time, that our choice is restricted to men whom the trainmaster happened to hire as extra brakeman years ago. These slight advantages in favor of the train auditor sys- tem have been given undue weight. We are all too much inclined to dodge responsibility, 121 LETTERS FROM A RAILWAY OFFICIAL. to take the course of least resistance and to pass it up to the other fellow. The company pays the bill. The railways of this country are wasting hundreds of thousands of dollars every year by failure to make the conductors do their hon- est duty. I would like to have you immortalize yourself by saving your company its pro-rata share of this economic waste. The American people at heart are honest, and barring a few dishonest traveling men who short- fare con- ductors and train auditors with cash, will in the mass support you and the Order of Rail- way Conductors in any intelligent movement for honesty. On the other hand, if the people at large get an idea that you are omitting to use all the moral forces at your command they will organize some more special commissions to handle another part of your business for you. Do not let the people get the idea that where passenger fare stealing flourishes, freight claims increase because some freight crews are robbing box cars, and expenses in- crease because some officials are grafting. If I were your president I would ask author- ity of the board of directors, a staff body, to say, as a line officer, to you, also of the line, 122 THE PROBLEM OF THE CONDUCTORS. that as chief operating official you are the only passenger conductor with whom the executive and staff departments will normally deal ; that your tenure of office depends quite as much upon your ability to prevent stealing as to pre- vent accidents. To the auditor I would say that he is responsible for certifying to the in- tegrity of all components of your operations by proper examinations after the fact; that he has access to all your accounts and records; that he has no direct authority over any oper- ating men; that all his instructions must be in general terms duly approved by the proper ex- ecutive. Then he would be a real auditor in- stead of a chief accountant. We would not have to call in the public accountant to do our real auditing. You would be a real general manager. Assuming that the proposition is up to you, then say to each division superintendent that he is the only conductor on the division in whom normally you will be personally inter- ested; that the conductor will send either the original or a duplicate of every report made by him to the superintendent's office, addressing it impersonally, "Assistant Superintendent." Let the superintendent understand that he and 123 LETTERS FROM A RAILWAY OFFICIAL. his assistant superintendents when riding over the road on duty at the company's expense must openly check the train just as they check train orders. Pitch it on the high plane of self-evident routine duty for duty's sake, above any thought of underhanded spotting. Give the superintendent as many assistant superin- tendents and clerks as he may need. Do not let him employ specialists for this one simple component of operation. Have him bulletin train earnings by conductors that the dear women may help the cause by sewing society discussion. Let him have the community un- derstand that some explanation is expected from a get-rich-quick conductor. By this time it will dawn on the superintendent and his as- sistants that their jobs depend upon the pre- vention of stealing. Their unconscious sym- pathy with the thief will vanish. Because they are close enough to the proposition to give practical attention they will prevent stealing. I am aware that passenger conductors often run over more than one division. This pre- sents no serious practical difficulty, although for many other good reasons also it is better, when practicable, for conductors not to run off the division. Pullman conductors run from 124 THE PROBLEM OF THE CONDUCTORS. their home district over the districts of several of their superintendents. You and the auditor will have to work out the details as to the necessary bureau in your office, depositaries for money, interline rela- tions and numerous other propositions which usually become self -suggesting when the broad working principles are established. You may, perhaps, need another assistant general mana- ger for this work. You will not have the trou- ble a general manager in Mexico once did. His assistant general manager sold out, it is said, to the conductors. These conductors, mostly Americans, were an enterprising lot. They are also said to have bought the detective agency that was employed to check them up. On some runs where the conductor is busy with numerous train orders you may find it better to make the head brakeman a collector, but never let him be a specialist independent of the conductor. Affectionately, your own, D. A. D. 125 LETTER XII. THE LABOR NEMESIS AND THE MANAGER. Omaha, Neb., June 24, 1911. My Dear Boy: You tell me that you are conducting labor negotiations these days. As I understand it, all the old grievances have been merged ; after eliminating all demands in- troduced for trading purposes it is simply a question of more money. This simplifies the proposition. The union gets all that it can and the general manager gives up only what he must. Simple, but barbaric. Such innocent bystanders as the public and the stockholders may get hurt in the process, but that is part of the penalty for being innocent bystanders. We are in a transition period. All the hot air fests that you are now holding are probably neces- sary to blow the chaff away from the wheat. Sooner or later the irrevocable law of supply and demand must operate to place the whole matter of the compensation of labor upon a more scientific basis. At present it is rather 126 LABOR AND THE MANAGER. the strength of the particular union than the relative justice of its demands. Our predecessors of two generations ago did many fine things, but they overlooked some basic propositions. Suppose that fifty or sixty years ago when a brakeman expected to be pro- moted to a conductor they had said : "Fine, my boy. You have the ear-marks of a conductor. You understand, of course, that we have no conductors who cannot run an engine. We will arrange, without money loss to you, for you to fire two or three years. When you as- sure us of your ability to run an engine we will begin to commence to talk about making you a conductor." Later on a man with this splendid all-around training could have spe- cialized along the line of his greatest aptitude. We would not see freight tied up in terminals waiting for firemen, with a board full of extra brakemen. There would be an elasticity of assignment that would work out for the good of all concerned. We would not have the fire- man straining his back to shovel fifteen or twenty tons of coal while a different breed of cat, a brakeman, rides on the fireman's seat and forgets to ring the bell when the train starts. 127 LETTERS FROM A RAILWAY OFFICIAL. We blame the unions for expensive lack of interchangeability of function. The fault lies at the door of the official class. The master mechanic said: "This is my man" The su- perintendent, and later the trainmaster, said: "This is my man." This pleasing tenacity for so-called individuality left the company out of the reckoning. The company got it where the chicken got the axe, sweet Marie. It did not take the men long to respect the plane of cleav- age which the officials had projected. So we have a number of unions with conflicting de- mands rather than the more enlightened self- interest of a larger body. I know that it has been fashionable to play one union against an- other, but the day of this is nearly passed. Just how it will all work out I do not know; per- haps it is too late to expect amalgamation. Per- haps it will come of itself when the Firemen and Enginemen absorb or replace the Brother- hood of Locomotive Engineers, and when the Trainmen outlive the Order of Railway Con- ductors. Whatever the cause and whatever the existing conditions the result is plain. We have a number of forces operating to restrict the output of capable men. The economic machinery of society at large is therefore out 128 LABOR AND THE MANAGER. of balance. You cannot blame the artisan, skilled or unskilled, for guarding the entrance to his craft. It is human nature, and it is right. The debatable ground, however, is as to where the entrance of the public at large should be to prevent the matter being over- done. No one labor organization can expect, in the long run, to be given preferred consid- eration over another; neither can the labor unions, comprising only a small percentage of the country's population, expect indefinitely to dominate society at large. It is useless to expect to accomplish much in the way of increased elasticity of labor as long as railway officials, through so-called de- partments, insist upon narrowing and special- ized rigidity. Such reforms to be effective must begin at the top. It will all come out in the wash, but in the meantime the laundry bills are disproportionate and may place cleanliness far beyond godliness. General Sherman, one of the versatile ge- niuses developed by our great Civil War, once said that most men consider the immediate at the expense of the remote; that a few like himself were handicapped by considering the remote rather than the immediate; that really 129 LETTERS FROM A RAILWAY OFFICIAL. great men, like Grant, derived their title to greatness from an ability to balance the imme- diate and the remote. All men are more or less a product of conditions and environment. The railroad official of today lives from hand to mouth the hand of expediency to the mouth of rapid-fire results. When more roads are like the Pennsylvania in having the sta- bility which admits of intelligent, far-seeing, actual control by directors and executive offi- cers, it will be easier. The banker, from his condition and enviroment, dreads a war or a strike more than the famine and the pestilence. The former two seem to him to be avoidable, while the latter may be visitations of Provi- dence. A strike, like a war, is a terrible thing to contemplate. A surrender to principle and violation of the broad laws of true altruism can be even more terrible. Last year when the Pennsylvania, backed by its directors, called the bluff of the Trainmen, there was hope in many a breast that a lesson would be learned; that the rights of the community at large would be vindicated as against the unrea- sonable demands of the powerful few. How quickly did the Trainmen find an excuse to 130 LABOR AND THE MANAGER. back down ! Their friend and adviser, the late Edward A. Moseley, shrewd and scheming, once told them that their best weapon is a threat of a strike and not the strike itself. By and by the bankers will learn these lessons and bargaining will be scientific and altruistic as well as collective and coercive. Perhaps you are thinking that, like the min- ister who lectures the members present for the non-churchgoing of the absentees, I am taking too much of this out of you. We all know, as do the labor leaders, that no general manager ever went through a long strike, successful or unsuccessful, without ultimately losing his job. The directors start out with the best intentions of supporting him. As the struggle grows fiercer, the temporarily reduced earnings have a refrigerating effect on their feet. This cold storage is reflected by a message to the brain that the poor Mr. General Manager is so un- fortunate; that he lacks tact. "He is so rash. He jumps right in. We told him he might go out to swim and hang his clothes on a hickory limb. We cautioned him, as all prudent moth- ers should, not to go near the water." Every- thing in this world costs something, and noth- ing is more expensive than an unjust peace, a 131 LETTERS FROM A RAILWAY OFFICIAL. peace which leaves out of the reckoning the rights of the body politic. One of the hopeful signs of the times is the opposition that the labor unions have of- fered to the exponents of so-called scientific management. Already our critics are giving in- dications of becoming our allies as against the hard-headed, selfish opposition of labor unions to progress. This will serve to help show the public our problems in their true light. All that we need ask is a fair hearing, and ulti- mately the calm judgment of the American people will decide aright. I have no quarrel with the labor union, as such. Were I in the ranks I would belong to a union and give it my loyal support. Mon- opoly and combination of capital beget as a corollary a labor trust. You and I are power- less to eliminate the effect of such natural, eco- nomic forces. We can, however, help control the effect of these forces, preferably by rea- son. There are so many of the primal instincts and passions still extant in human nature that at times diplomacy exhausts itself and falls back upon the protection of forces offensive and defensive, active and passive. You see that it is merely a phase of a gen- 132 LABOR AND THE MANAGER. eral problem that a disproportionate amount of your time is taken up by affording an op- portunity for delegates to make their lodges believe they are earning their per diem and expenses. What matters it to the locomotive engineers if their importunities cause scant at- tention to the unspoken rights of your clerks and trackmen? Why not figure out just what proportion of your time the different organiza- tions are entitled to, shut off senatorial cour- tesy and limit debate accordingly? Whatever you do, have your division super- intendents present at your negotiations. Do not flatter yourself that your own wonderful ability will enable you to take a sound position on every question that may arise. Such delib- erations are staff work and, unlike line admin- istration, are not a one-man function. The final decision should rest with you, but in the meantime get all the light you can. Under the unit system the superintendent can be thus spared from his division to help save the com- pany money because there is always a compe- tent man to perform his duties, and a provision all along the line for automatic successions to meet just such incidents of service. It should be as easy for a chief assistant superintendent, i33 LETTERS FROM A RAILWAY OFFICIAL. familiar with the routine, to assume the super- intendent's regular duties any day as for the second dispatcher to work the first trick. When your mechanical assistant conducts his shop negotiations, by all means insist that he direct the superintendent to send in each mechanical assistant superintendent to assist in the con- ferences. One reason that the labor situation has got- ten away from us is because the matter has been handled on too large a scale. The ten- dency has been to consider the abstract possi- bilities rather than the concrete effort. A superintendent of a i4O-mile division once rec- ommended approval of an application for in- crease in wages of his milk train crew, be- cause the men on the next division were get- ting as much for running only 105 miles. In- vestigation showed that his men were on duty less than six hours, of which the total time consumed in handling milk cans was a trifle over an hour. Each general manager is in- clined to believe that his men will get the worst of it as compared with other roads. He has been inclined to yield when he should have been firm. The further away from 4he con- crete local conditions the negotiations can be i34 LABOR AND THE MANAGER. conducted the more vulnerable are the officials. The labor leaders know this, and the more divi- sions or the more roads they can bunch in a single negotiation or arbitration the more un- wieldy becomes the proposition and the greater the gain for labor. This condition of things was partly inevitable, is now partly avoidable. Uniformity may be deadly. Standardization can be run in the ground, as was shown when a West Virginia agent of the Chesapeake & Ohio painted his wooden-leg orange color with maroon trimmings. Affectionately, your own, D. A. D. 135 LETTER XIII. A DEPARTMENT OF INSPECTION OR EFFICIENCY. Chicago, July I, 1911. My Dear Boy : One of the easiest things to measure, because definite in terms and limited in quantity, is money. The things which money may represent are hard to measure be- cause often intangible and indefinite. The money account may or may not reflect effi- ciency in performance. Have we not been grasping at the shadow of money at the ex- pense of the substance, effect? Consider, if you please, the working of a bank, perhaps the corporate institution in whose efficiency the public has the greatest confidence. In a small country bank one man does all the work. Later he requires a clerk or a bookkeeper. As the bank grows there are self -suggesting divisions of labor along such well defined positions as teller, paying or receiving, cashier, vice-presi- dent, president, etc. In the first place, the same man handles the money and its written representations, the accounts. When we reach 136 INSPECTION OR EFFICIENCY. the stage of having both a teller and a book- keeper, the one is a check on the other, because of a difference in point of view. I do not un- derstand that a bank considers its bookkeepers more honest than its tellers or vice versa. The bookkeeper came along to check the teller, not because of such marked variations in hu- manity, but because of the volume of busi- ness. There was more than one man could do. The large corporations, including the rail- ways, seem to have followed governments into a fundamental fallacy in the matter of money and accounting. Because, now and then, in spite of safeguards, a trust is violated and money embezzled, a remedy is sought by seg- regating in administration all activities having to do directly with fiscal affairs. The ultimate effect is dwarfing to administration and fatal to maximum composite efficiency. In a com- pact establishment like a department store or a large manufacturing plant, the closer con- tact of the departments concerned minimizes the evils of this segregation. The operations of a government or of a railway extend over so much territory that such close contact is im- possible. The result is that our bookkeeper 137 LETTERS FROM A RAILWAY OFFICIAL. is too far away from the paying teller. The bookkeeper then arrogates to himself fancied qualities of a superior being blessed with a rectitude born of the guardianship of money. Yes, we must have the transactions of one man checked by another more or less disinter- ested. This is not alone a question of integ- rity, but concerns the failings of the human mind. The more conscientious and careful the engineer the more does he desire a check on his own calculations by competent persons. We accept the estimates of the engineer, swallow them whole sometimes. We tell him to go ahead and blow in the company's money or credit to accomplish a desired result. This is because we have confidence in his professional ability. When it comes to one of the compo- nents of his constructing work, the disburse- ment of real money, a lay function, we balk. We say to him, this is so different that your vouchers and checks are worthless until mulled over by a distant circumlocution office. This office, it is true, has no first hand, practical knowledge of what you are doing, but be- cause this is money we feel safer by imposing such a check. When the bookkeeper sat in the same room, like a bank, and checked 138 INSPECTION OR EFFICIENCY. the engineer, this was a good working hypoth- esis. Did we not outgrow it long ago? We trust the engineer to hire a thousand men, to incur a legal obligation for us to pay them. Why send the pay-rolls several hundred miles to be checked by a lot of boys? Why not let the engineer disburse, subject to a real check, after the fact, by a competent disinterested in- spection of his work? The same general line of reasoning applies to all the activities of a railroad. We endeavor to insure integrity by disbursing only through the central offices of the auditor and the treas- urer. By the same reasoning a large bank would keep its customers waiting at one win- dow because only one teller would be allowed to pay out money. A bank can count its cash at the end of a day, but it can never tell exactly what remittances its correspondents have in the mail. A railway's money is even more in a state of unstable equilibrium. All night long some of its ticket offices and lunch counters are open. All night long cash fares are being collected on trains. The exact amount of .money on hand at a given moment is only an approximation. This is natural from the char- acteristics of a railway. It would be a hard i39 LETTERS FROM A RAILWAY OFFICIAL. matter to stop every train and determine the exact location of every freight car, at home or earning per diem, at any particular moment of time. We can, however, approximate suffi- ciently closely to the conditions to serve all practical purposes. Tremble not at my coming, Clarice ; I would not push the auditor off the pier. Rather would I put him on the band wagon and let him blow a bigger horn. Is not accounting one of sev- eral components of operation of which collec- tion and disbursment are yet others? Why not frankly admit that a railway is too unlike a department store to put all the cashiers and bookkeepers on a single floor? Why not interweave accounting with operation? Why not make such operating units self-contained, as experience may prove wise and practicable ? Some of the best roads in the country now have division accounting bureaus in order that the superintendent may keep his operating expenses in hand. The next step must be a division disbursing officer. A pay-roll and certain kinds of vouchers, including some for claims, must become cash without the worthless certification of the general office. 140 INSPECTION OR EFFICIENCY. Returning once more to the bank for inspir- ation and for light, do the bookkeepers of a chain of associated banks report to a head bookkeeper in a central office in a distant city ? No, each bank is a self-contained unit under the president or a manager. The policy is dictated, the methods are prescribed by a cen- tral authority. Efficiency, integrity, and uni- formity are insured by inspections and audits by competent experts free from local affilia- tions. What is going to become of the accounting department ? Why, the accounting department is going to be absorbed by the operating de- partment. From the ashes of the ruins there will arise a department of inspection or effi- ciency which will do the things that the so- called auditors are now helpless to accom- plish. Some of the men in this new depart- ment will be recruited from the earnest offi- cials and clerks of the accounting department of today. These men fail to attain the result they so loyally desire, not from their own lim- itations, but from the fallacy of the system under which they work. They deal with ac- counts mere symbols; with money, a repre- sentative. Their work, to be effective, must 141 LETTERS FROM A RAILWAY OFFICIAL. deal with things, and above all with men. Audit is extremely important, but not all-im- portant. Audit is a component part of a larger activity, inspection. The word inspection on railways is unfortunately and improperly asso- cited with the thought of secret service and underhanded spotting. True inspection is as open as the day and as welcome as the evening. The earlier station agents resented the crea- tion of the traveling auditor as a reflection upon their integrity. The station agent of today and as a class what splendid, honest men they are! welcomes the traveling au- ditor, because his visit means a clearance. The public accountant had a long fight for rec- ognition of his legitimate function, first in England and later in this country. To- day he is established and is desired by the gen- eral accounting officers of railway corpora- tions. Following the public accountant comes the efficiency engineer. While one inspects con- ditions, the other audits accounts. By an easy process of evolution the two positions sooner or later merge into one. The volume of busi- ness may warrant segregation, however, into component activities. Sooner or later the final 142 INSPECTION OR EFFICIENCY. certificate must include inspection of men and things as well as audit of accounts. We, the railways, are big enough to have our own efficiency engineers. This is a dis- tinct function for the staff as contra-distin- guished from the line. Efforts, more or less crude, to introduce special staff work have sig- nally failed on a number of railways. The underlying cause has been a violation of the principle that the staff can never as such di- rectly command the line. The temptation of the special staff men, call them inspectors or efficiency engineers, if you please, is to become meddlers. They are so enthusiastic for the cause that they desire to save the country and reform the road all on the same day. The men who succeed at special staff work are those who stick to the principle enunciated. An in- spector, because he is- a staff officer, should never give an order. The coming new department of inspection or efficiency, like all innovations, will have its troubles. One of the temptations will be to build up an office full of clerks to check a lot of unnecessary reports. The head of the de- partment, whether he be called general inspec- tor or vice-president, will have to remember 143 LETTERS FROM A RAILWAY OFFICIAL. that untrained persons do not necessarily be- come endowed with superior intelligence and professional acumen by the privilege of per- sonal contact with him and assignment to his department. To be successful his department will consist of a corps of highly trained in- spectors of official rank and experience, capa- ble of first hand dealing with things and men. The tendency of both inspection and audit is to become perfunctory. One remedy, found efficacious by the Army, is definite and periodic rotation from the line positions. The law of the survival of the fittest will bring out those all-around men who can succeed in both line and staff. The superintendent who has been detailed as an inspector for a year or two will return to a division with a broader view and will be a better superintendent. He will not resent the inspection of his division by the other department, because conscious of the fact that the inspectors are at least his equals, and perhaps his superiors, in experience and rank. These inspectors will certify not only that the money has been honestly and legally expended, but wisely and efficiently as well. While an absolute essential, honesty is not the only com- ponent requirement of good administration. 144 INSPECTION OR EFFICIENCY. The one road on which good intentions are standard ballast is not as yet telegraphing its accidents and its density of traffic to the Inter- state Commerce Commission. Affectionately, your own, D. A. D. LETTER XIV. PRESERVING ORGANIZATION INTEGRITY. Chicago, July 8, 1911. My Dear Boy: You write me that your work is heavy, that your territory is extensive, that you wish to divide it into two districts each under a general superintendent. If your president follows his usual practice and asks my advice it will be summed up in four letters, "d-o-n-'t." For years I have been seeking in vain for a general superintendent's district with an entirely satisfactory administration. I know many strong general superintendents. The trouble is not with them, but with the system. Organization is a series of units. These units get out of balance when they are defective or incomplete. There is usually withheld from the general superintendent some such vital process as car distribution, on the specious plea that such activity is so different it can be more cheaply handled by some higher office. If the organization unit is created it must have the same full chance for life and 146 PRESERVING ORGANIZATION INTEGRITY. development as the rest of the offspring. A principle in organization cannot be violated with impunity any more than in other branches of science. The average general superintendent's office is a great clearing house for correspondence. Few matters receive final action and many are passed along to the general manager's office. The resulting delay usually does more harm than good. On the other hand, since we all like to feel that we are highly useful, the gen- eral superintendent, or his chief clerk, is un- consciously dwarfing the initiative of superin- tendents by requiring references to him of matters that should receive final action at divi- sion headquarters. If you do not believe it, check up a few general superintendents' of- fices and study the processes. I am not refer- ring to jurisdictions where a general superin- tendent is required by charter or other legal requirements. I have in mind districts which are arbitrarily created by ill-considered execu- tive mandate. The general superintendent starts out with a brave determination to get along with a small staff. Sooner, rather than later, human nature asserts itself; he feels that my man can LETTERS FROM A RAILWAY OFFICIAL. be more useful if he is on my staff. He builds up a larger staff with an inevitable retarding bureau of correspondence. He perhaps has a $200 traveling engineer rinding fault with the division performance of the $300 superintend- ent. Sometimes a general superintendent is lo- cated at a large city under the theory that the importance of the metropolis demands an offi- cer of higher rank. There are various ways to skin a cat, and the method we have seen is not necessarily the only solution. The Penn- sylvania handles successfully large cities like Cincinnati, Cleveland and Chicago with a su- perintendent who has the authority of a gen- eral agent. The unit system of organization, because based on sound fundamental principles, solves several vexatious problems. Among these is this matter of general superintendents' dis- tricts. Under the unit system every assistant should have his office of record in the same building with the head of the unit. For ex- ample, it is a violation of good organi- zation to give a district passenger agent the title of assistant general passenger agent with an office of record at a city away 148 PRESERVING ORGANIZATION INTEGRITY. from the general offices. If such outly- ing office of record is necessary, and it sometimes is, a complete unit should be segre- gated under a head with some such distinct title as district or division passenger agent. This does not, however, preclude having an assistant reside in the outlying city and main- tain his office of record at the general office in the same file with the head of the unit. If I were you I would appoint enough as- sistant general managers so that you can have one reside at each point where you have dreamed district headquarters are necessary. Give him a business car and a stenographer, but let him understand that his office file is a part of yours. Let him live on the road as a high class traveling inspector, superior in rank to the people he is inspecting. He is your staff officer with line authority available for action when in his judgment circumstances so require. He can obtain all necessary in- formation from the files at division headquar- ters or by telegraphing your office. Your chief of staff, the senior assistant general manager, will promulgate instructions, while this travel- ing representative, like a trainmaster on a di- vision, will see that they are carried out. 149 LETTERS FROM A RAILWAY OFFICIAL. When he finds it necessary to give instruc- tions he should promptly notify your office, that the record may be completed and confu- sion avoided. He can do all this without be- coming bureaucratic, without putting the com- pany to the expense of a great circumlocution office maintained under the feudal notion of his royal importance. Railroad administration suffers from too many offices and instructions, not from too few. The best officials, and the best train dispatchers, give the fewest orders. It is a qualitative rather than a quantitative proposition. The moral effect of the presence of an offi- cial cannot be discounted. We need more of- ficials and fewer clerks. The railways are over-manned, because they are under-officered. The great mistake of the past, due to crude conceptions of organization, has been in creat- ing offices rather than officials. The same line of reasoning applies to the handling of outlying terminals on a division away from a dispatcher's office. The old idea has been to locate a trainmaster with an office at such points. The moral effect of his pres- ence is unquestionably good. The objection is that he must necessarily be on the road much 150 PRESERVING ORGANIZATION INTEGRITY. of the time, and the train crews are handled by a clerk. Duplication results because most of the correspondence and records have to be referred to the superintendent's office. The Union Pacific has found it better under the unit system to have an assistant superintendent reside at such important terminals. His office, however, is located with the superintendent, which encourages travel back and forth, just what is desired, and discourages sitting in an office and carrying on correspondence which can better be looked after by the chief of staff in the superintendent's office. The train crews are under the immediate direction of the yard- master when in the terminal, and of the train dispatcher when on the road. The railroads of this country have suffered from rigidity in administration. The unit sys- tem permits an elasticity of assignment to take care of conditions as they come along. For example, your non-resident assistant general manager can, if desirable, chaperon three divi- sions when movement is heavy, and four or five, if you please, during the dull season. You can on short notice throw all assistants to the most exposed points. A non-resident assistant superintendent can likewise be sent to an ex- LETTERS FROM A RAILWAY OFFICIAL. posed district. A permanently located train- master requires an official circular to have his jurisdiction extended, and if suddenly ordered away can leave only a clerk to represent the company. A railway has an ever-present fir- ing line. The more mobile the official force the more promptly can weak portions be rein- forced. A striking violation of the unit principle in organization is to have the master mechanic report to the division superintendent in trans- portation matters and to the superintendent of motive power in technical matters. This is a half-way attempt at divisional organization which lacks the courage of conviction. Better have a straight departmental organization with its divided authority and expensive duplica- tion than thus to straddle the question. If the division is to be a real unit, it must be com- plete and self-contained. The lack of balance in this attempt at divisional organization comes from the fact that units are mixed. The su- perintendent of motive power, a general offi- cer with jurisdiction over the entire road, is a member of the general manager's staff. He has a rank and value superior to that of a divi- sional officer, the superintendent. The poor 152 PRESERVING ORGANIZATION INTEGRITY. master mechanic is often puzzled which supe- rior to please. His natural inclination will be toward the man higher up, the superintendent of motive power. Again, it is difficult for any three men to agree upon what are technical matters. The chief of staff method is not ap- plicable to this phase of the problem, because units have been mixed. The master mechanic and the superintendent of motive power are not components of the same integral unit. The unit system of organization requires a super- intendent of motive power to transact all busi- ness of record with the office of the superin- tendent of the division, a component unit of the general jurisdiction. The senior assistant general manager and the senior assistant su- perintendent, each, as a chief of staff for the head of his unit, decides promptly in the ab- sence of the head of the unit, what matters are sufficiently technical to demand the atten- tion of a particular official. Clear-cut, definite and prompt action is possible, with proper checks and balances, because units are not mixed. The governor can introduce a balance without throwing the administrative machine out of gear to avoid stripping its cogs. The splendid personal equation of railroad officials iS3 LETTERS FROM A RAILWAY OFFICIAL. often serves to carry an illogical organization in spite of its fundamental defects. Similar violations of scientific principles in material things would cause bridges to collapse and locomotives to break down. The showing made by the railroads is a tribute to the admin- istrative ability of their officials rather than to their knowledge of organization. The Pennsylvania a half century ago, and the Har- riman Lines in more recent years, are said to be the only roads that have made comprehen- sive studies of the science of organization. Both of these great railways are prepared to stand the test of time. Both will grow stronger as the years roll by. So feudal is the conception of organization on most railways that the essential elements of self -perpetuation are sadly lacking. Fortunately their traffic strength is so great and our country develops so fast that errors due to preconceived miscon- ceptions and personal caprice are covered up by increased earnings. One encouraging sign is that railway officials have ceased to be quite so cocksure of themselves and are seeking the underlying reason for the faith that is in them. True science ever finds its vindication in im- partial inquiry and intelligent investigation. PRESERVING ORGANIZATION INTEGRITY. The world advances by definite steps rather than by leaps and bounds. Do not lament the fact that some roads are groping ahead only to occupy the abandoned organization camps of the Harriman Lines. Be thankful rather that they have moved forward at all, that though lacking in faith they are coming to a position admitting of enlarged perspective. Affectionately, your own, D. A. D. LETTER XV. THE SIZE OF AN OPERATING DIVISION. Los Angeles, Cal., July 15, 1911. My Dear Boy: How many miles of road should one division superintendent handle? Like the old lady's recipe for pie crust, it all depends. Some superintendents in the east with two hundred miles handle as much busi- ness as do their western brothers with a thou- sand. As a matter of fact mileage has little to do with the question. On the ideal division the superintendent is in the middle with terri- tory extending one freight district in each di- rection. If he happens to be at a hub he can comfortably handle several freight district spokes, which will increase his mileage accord- ingly. Under such a condition the advantages of a seemingly large mileage are numerous. The superintendent can run his power wher- ever most needed. He can hold back at the farther end of one district cars that he knows the connecting district cannot possibly load or unload for several days. He can preserve a 156 THE SIZE OF AN OPERATING DIVISION. balance which is impossible when jurisdictions divide at the hub. In the latter case each su- perintendent hurries freight to the end of the division to avoid a paper record showing delay on his territory. The result is that the next man has terminal indigestion because he has been fed too fast. Therefore, divisional juris- diction should, when possible, change at an outlying district terminal away from a large city. This avoids the added complication due to industrial switching, suburban trains, re- stricted area, etc., etc. A congestion of cars is often caused by a congestion of jurisdic- tions. You may avoid the one by diffusing the other. Several roads in the country have saved heavy expenditures for larger terminal facilities by more scientific organizations. The amount of mileage a superintendent can economically handle depends, then, for the most part upon the location of his headquar- ters. Such location in turn admits of no hard and fast rule. Cities and towns spring up and industries develop quite regardless of the limits of a hundred-mile freight district and a speed of ten miles per hour on the ruling grade. A railroad usually begins and ends at a large city which is either a seaport or a gateway. It is LETTERS FROM A RAILWAY OFFICIAL. normally better to locate a division superin- tendent at such beginning and ending city. He can then handle its terminals and the one or more diverging freight districts. His division should include the terminal at the farther end of such districts, to afford him opportunity both to hold back stuff whose inopportune ar- rival might congest the more complicated ter- minals at headquarters and to relieve such ter- minals promptly by movement outward. In other words, owing to his important terminals this superintendent should have less mileage than his country brother who would be in the middle between the second and third districts. Some roads try to solve the problem by giv- ing the superintendent the first and second dis- tricts with headquarters in the middle. If in such case the general offices happen to be at the initial point they soon ignore the superin- tendent and do business direct with his termi- nal subordinates. When this condition be- comes intolerable, one of two things usually happens. Perhaps the superintendent's office is moved to the first terminal where it really be- longs. Thereupon he loses full touch with his freight crews on the second district, which is left out in the air. The other attempted 158 THE SIZE OF AN OPERATING DIVISION. remedy is to appoint a superintendent of ter- minals reporting direct to the general offices. The difference in viewpoint thus legalized may cost the stockholders much money. To the terminal superintendent the trains are always made up on time and the power and road crews are seldom ready. To the division superin- tendent the trains are seldom made up on time and the power and road crews are always ready. Much energy of both officials and their offices as well as that of the general su- perintendent and his office is then directed to holding useless post mortems and negotiating unnecessary treaties of peace. Remember, my boy, that typewriters exert no tractive power and explanations move no cars. Self-preser- vation is the first law of nature. We must so organize that this law will operate to keep the company into clear, not to put some other fel- low in the hole. All of these questions are largely matters of opinion. After working with every kind of terminal organization all over the country, your old dad believes that the best is to have a division superintendent at the big terminal with an assistant superintend- ent in direct charge of and responsible for such terminal, the superintendent controlling LETTERS FROM A RAILWAY OFFICIAL. every diverging freight district to include the next terminal. It should always be remembered that a large terminal demands preferred consideration, be- cause owing to restricted area its problems are intensive and expensive. A dispatcher has a hundred miles or more over which to keep his trains apart, while a yardmaster finds his engines bunched within a mile or two. Again, if the cost of terminal switching does occasion- ally happen to be reflected in a freight rate, the genial gentlemen of the traffic department are prone to recommend its absorption. I be- lieve as a broad proposition that the manage- ment of railroads is more scientific than that of most modern industries. I would not like, however, to file much of their terminal opera- tion as an exhibit. A majority of the switch engines in the United States have one super- fluous man in the crew. This is partly because so few operating officials have sufficient prac- tical knowledge of switching to go out and intelligently handle a crew all day. If you don't believe this, make some time and motion studies of switching. Compare the relative performance of your yard conductors. The tasks of road conductors are relatively so well 160 THE SIZE OF AN OPERATING DIVISION. defined that comparison of individual perform- ance is not so difficult. The intense conditions of a terminal complicate such differentiation as among yard conductors. Another factor of prime importance in de- termining the size of an operating division is the location of train dispatchers. The dis- patcher's table should always be considered an integral part of the superintendent's headquar- ters offices. The train sheet is perhaps the best record on a railroad. It is never fudged by being made up in advance. It is a history usu- ally unimpeachable because it is so close to the actual transactions which it records. It deals with the essence of railway operation, train movement. Few are the important records on a railway that do not derive their primary data from the train sheet. The sheet may be gra- phic, like a daily time card chart, or may be cut up into card strips, as under the ABC system. In any form, it is a fundamental of operating history. The number of dispatchers to which a divi- sion is limited is, like the number of miles, variable. With headquarters at the hub, one superintendent and one chief dispatcher may comfortably handle three or four sets of dis- 161 LETTERS FROM A RAILWAY OFFICIAL. patchers. An outlying division with thin traf- fic may require only one set of dispatchers. When it becomes necessary to locate a set of dispatchers away from division headquarters, it is time to appoint another superintendent and create a new division, perhaps with only a light staff of all 'round officials. So important is the train sheet and so much of vital, human interest centers around a dispatcher's office, that the far away superintendent must refer much correspondence to this detached portion of his office. The result is expensive circum- locution and a lack of human touch. The su- perintendent has in effect become a general superintendent too far away from real things. A trainmaster or a chief dispatcher is really carrying the responsibility of a superintendent without the title and authority necessary for smooth administration. I know several rail- ways that are fooling themselves into the be- lief that they are saving money by having one superintendent for two dispatching offices. One of them has five superintendents and ten dispatching offices, really ten divisions in fact, if not in name. By a logical arrangement of territory these ten dispatching offices could be consolidated into seven division headquarters 162 THE SIZE OF AN OPERATING DIVISION. and the road operated in seven divisions. In these days of overtime and complex working schedules, a timekeeper should check the time slips against the original train sheet, not against a copy, a transcript or an excerpt. A division accounting bureau handling all that it should handle has also much other use for the train sheet. Second only in importance to the train sheet as a record, and with which it should be closely related, is the conductor's car and tonnage report; what the men call the wheel report. This important report made by a division man is sent to a remote general office in disregard of the responsible head of such division, the superintendent. The result is that a distant authority, the superintendent of transporta- tion, is telling the superintendent that certain cars are being delayed on the latter's division. This profuse correspondence is often foolish, because meantime the cars have actually gone. Some roads now have a carbon copy of the wheel report made for the use of the account- ing department. Why not send this carbon to division headquarters and let the division ac- counting bureau make up the ton miles and the car miles, subject to proper check after the 163 LETTERS FROM A RAILWAY OFFICIAL. fact? Why not have the office of the super- intendent know so much about the cars on his division that he will tell the general offices that certain cars are being delayed on his division for lack of motive power, loading or disposi- tion, conditions which, perhaps, the general office, with its larger view, can remedy? This would also permit, when desirable, the check- ing of the agents' car reports against the con- ductors 1 reports. The more closely to actual transactions we can do our checking the more intelligent should be the process and the smaller its volume. I wish that you would come out here and see the Southern Pacific run its monthly sup- ply, pay and inspection train. Before coming, re-read my letter to you on the subject some seven years ago. I know of no place where the idea has been better carried out. Ideas seldom originate with any one man. They seem rather to float around in the air. They are pulled down by those who happen to erect lightning rods or like Benjamin Franklin to fly kites. To vary the metaphor, do not laugh at people who ride hobbies. Sometimes they ride well enough and far enough to demon- 164 THE SIZE OF AN OPERATING DIVISION. strata that the hobby is a real horse. Then it is the turn of the horse to laugh. Whenever I see an announcement that a division has adopted the telephone for train dispatching, I always feel that there should be an accompanying apology for being several years behind the times. For years progressive young railway men advocated the telephone only to be assured by old-time dispatcher offi- cials of the unwisdom of such a course. Time and practical tests have shown that not only is the telephone practicable for dispatching, but it actually makes operation safer because of the increased human touch. Whenever and wherever we can replace a specialist with an all 'round man we are gaining. The first train dispatching is said to have been done by Charles Minot when a superin- tendent on the Erie in the early fifties. So seriously was the matter taken that only the superintendent himself could issue a train or- der, even though this involved calling him out of bed. Hence the foolish feudal custom of signing the superintendent's initials to all train orders. It soon developed that a regular dis- patcher was necessary. Accordingly, a con- 165 LETTERS FROM A RAILWAY OFFICIAL. ductor, a man who knew how trains were prac- tically handled, was taken off the road and brought to the superintendent's office to dis- patch trains. Stop off at Port Jervis, N. Y., some time and in a local hotel see the portraits of some of these old Erie dispatcher-con- ductors, their dignity being protected by the tall beaver hats of the period. The dispatcher not being a telegrapher, he wrote out his or- ders and handed them to a young operator to send. This operator was a bright fellow, who, by and by, graduated into a dispatcher, able to send his own orders and often to do the work previously requiring both men. Too often it has happened that the experience of the new dispatcher, a telegrapher specialist, was limited to the office end, with no first- hand experience in train service. The tele- phone, fulfilling the immutable laws of evolu- tion, will take us back to first principles. The dispatchers of the future will graduate from the train, engine and yard service, through the dispatcher's office to higher official positions. The man who gives the order will be a man who has once carried out such an order him- self. The man below will obey the more cheer- 166 THE SIZE OF AN OPERATING DIVISION. fully and the more intelligently because of increased confidence in the man above. When the record is made up by the future historian, with that discriminating perspective which time alone can give, high will be the place accorded the railroad officials and em- ployes of America. The military, the pioneers of civilization, the forerunners of stability, have their periods of enervating peace. Trans- portation, the first handmaiden of progress, is in active attendance every day of the year. Those who worship at her shrine and follow her teachings must lead the strenuous life and love the voice of duty. The splendid, virile performance of the past, handicapped often by crude facilities and forced expansion, must and will be eclipsed under the intense, trying conditions of the present and the future. In no profession more than in ours is* there eter- nity of opportunity. Affectionately, your own, D. A. D. 167 LETTER XVI. SUPPLIES AND PURCHASES. Salt Lake City, Utah, July 22, 1911. My Dear Boy : Supplies and purchases are a feature of railroad operation illustrating the tendency to overcentralization through over- specialization. Please notice that I say sup- plies and purchases; not as some roads do, purchases and supplies. Is not "supply" the broader term, including "purchase" as a very important component? If we happen to make some of our supplies from our own scrap, a question of supply and accounts is involved, but not necessarily one of purchase. The vol- ume of work involved in purchasing for a large railway may be so great as to warrant the segregation of the purchasing function. Among the best purchasing bureaus in the United States are those of the Harriman Lines. As I understand it, their able director of purchases does not, as many people suppose, scrutinize all requisitions. Each of the eight vice-presidents and general managers has his 168 SUPPLIES AND PURCHASES. own purchasing agent, who, under the broad policy of local autonomy, buys many articles as best he can. Those large items which ex- perience proves can best be bought for all by the director of purchases, are so purchased un- der blanket contracts. For those items the local purchasing agent becomes an ordering agent. The point of it all is that no iron clad rule is laid down. Because some items can best be purchased in bulk, it does not follow that local administration should be hampered by requiring all items to be so procured. In- stead of a narrow, rigid rule, there is a broad policy enunciated which permits the discrimi- nating judgment of experience, to decide ques- tions on their individual merits under the ever- changing conditions of service. When railroads are older similar broad treatment will be accorded other features of operation as well as supplies and purchases. Broad policies and individual judgment will gradually supplant attempts to decide questions in advance in accordance with preconceived no- tions of probable conditions. The evolution of the so-called store depart- ment on most railways has been a striking in- stance of one-sided development. A railway 169 LETTERS FROM A RAILWAY OFFICIAL. exists to manufacture and sell an intangible commodity, transportation, not necessarily to carry either a large or small stock of material and supplies. The purchasing agent tells us in good faith how much money he has saved the company by time spent in driving good bargains. He is not in a position to know how many men have been worked to poor ad- vantage, or have been idle, while waiting for proper tools, materials and supplies. Such features of economic waste are not always the fault of the purchasing agent. The general storekeeper and the local storekeeper, ambi- tious for low stock records, may hold down their requisitions. It is so easy to say that a telegram will bring a cylinder head or other spare part to the desired point. If meantime a big locomotive has been out of commission in a distant roundhouse for two or three days and a light engine has been sent to protect the run, there is nothing in the store accounts to reflect this needless expense. The individual batting averages are high, but some way the team is not winning games. One of the fallacies introduced by the store people is that the user of material cannot be trusted with its custody, because he will carry 170 SUPPLIES AND PURCHASES. too much stock, due to an exaggerated view of future necessities. This mistaken theory is carried to the extent of denying to the division superintendent the custody of fifty shovels to be used by the emergency gang of fifty men which it is entirely within his province to order out to clear the road. The men he can com- mand. The shovels, without which the men are useless, he must beseech from a storekeeper receiving, perhaps, one-third as much salary as himself. Of course, in an emergency, the superintendent takes the shovels, anyway. As I said before, it is a pretty poor system that breaks down in an emergency. The test of a system is an emergency. I confess my inabil- ity to see that being a user of material neces- sarily makes a man more indifferent to the company's interests. Perhaps it is the same habit of mind that causes me to deny greater rectitude to the man in the accounting depart- ment. The user of material has undoubtedly been careless in many cases. Will he not become more careless if relieved of responsibility and informed that he cannot be trusted? When children err, the wise parent does not disown them. From his fund of riper experience, he 171 LETTERS FROM A RAILWAY OFFICIAL. helps them by impressive teaching to gain a proper viewpoint. Similarly, the general store- keeper should control the superintendent and teach the latter the most economical handling and use of material and supplies. Control is comparatively valueless without authority. This authority can be most effectively con- veyed by rank. The general storekeeper should not be a keeper of a general store. He should be a general officer, under the general mana- ger, superior in rank and pay to the division superintendent. Instead of the superintendent being relieved from responsibility, he should be held to a greater accountability. The re- formed and reconstructed bandit often makes a relentless police chief. The despised user of material under proper organization becomes the zealous conserver and protector. The general storekeeper, like the chief me- chanical officer, should be located in the same building with the general manager. There is no more reason for locating either one at a store or at a shop than there is for locating a general superintendent in a switch shanty near a yard. General officers must see the whole property and maintain a balance among its component units, which are normally operating 172 SUPPLIES AND PURCHASES. 'divisions. If I were you, as between your pur- chasing agent and your general storekeeper, I would appoint the most experienced an as- sistant general manager, so that his office file can be logically and consistently consolidated with your own. The other of these two men I would make purchasing agent with a distinct title and a separate office file, because of his large volume of business with outside persons. Such assistant general manager would be in effect manager of supplies and purchases, the trained expert seeing the whole problem of operation and deciding normally what material and supplies the company needs. Under such assistant general manager, would be the pur- chasing agent, a staff officer, specializing on the technique and psychology of bargaining. Such assistant general manager, as a line offi- cer, would be his own general storekeeper and would hold division superintendents responsi- ble for the stores on their respective divisions. His work would be co-ordinated with that of the other assistant general managers by the chief of staff, the senior assistant general man- ager. The organization thus outlined would pre- clude the necessity for the usual perfunctory LETTERS FROM A RAILWAY OFFICIAL. approval of requisitions by the general mana- ger. The assistant general manager for sup- plies would normally put the final approval on requisitions. Large or exceptional items the general manager would approve. When differences of opinion developed among the interested assistant general managers as to the relative ultimate economy of different mechan- ical or structural devices, the general manager would be invoked to give a decision that really would be worth something, because made after considering different viewpoints. Under the old order of things, the superintendent of mo- tive power or the chief engineer is tempted to seek the ear of the general manager on the latter's best natured day to put over a requisi- tion for some pet device. So sporadic is the comprehensive consideration of requisitions, so perfunctory is the usual approval, that the gen- eral manager frequently tells his purchasing agent not to take the former's approval too seriously, and to hold up approved requisitions about which the latter is doubtful. This is an- other species of unconscious administrative cowardice which attempts to put on the sub- ordinate the burden of responsibility for a de- parture from the normal. True organization i74 SUPPLIES AND PURCHASES. and administration demand normal procedure by subordinates. At normal speed, the admin- istrative machine should run well balanced. When the speed becomes great enough, higher authority should be a governor brought into action more or less automatically. Telling a subordinate habitually to question the acts of his superior has the same cheapening effect as unchecked disregard of block signals. It puts higher authority in the undesirable attitude of exploiting a fad, or an over-worked system, rather than of demanding reasonable compli- ance with proper and logical requirements. Have we not overdone the matter of low working stocks? Is is not more expensive for a railroad to carry too small a working stock of material and supplies than one too large? Is not the problem too extensive to warrant very rigid comparisons as between different roads ? Like the average miles per car per day, does not the equation contain too many vari- ables to admit of a very exact solution? Can we compare effectively the dissimilar condi- tions involved in climate, distances from pro- ducing and distributing centers, character of predominating traffic, etc. ? Are not some rec- ords for seemingly low economical stocks LETTERS FROM A RAILWAY OFFICIAL. based upon the fallacy that it costs the com- pany nothing to ship and reship its own mate- rial ? Where would these records land if com- pany material carried a freight charge of, say, 5 mills per ton per mile? Is it not more eco- nomical to handle numerous items of supply in carload lots regardless of average monthly con- sumption? Have we given due weight to the concealed items of expense in arriving at con- clusions as to the cost of handling company material and supplies? Two of the best-managed roads in the coun- try, the Pennsylvania and the Big Four, had no stores departments the last time I inquired. At the other extreme, we find the Santa Fe and the Lake Shore carrying their depart- mental system to their stores in an intensified form. In between that happy medium which I mentioned to you stand the Harriman Lines with division stores under the division superintendent, who in turn as to supply mat- ters is under the general storekeeper or other chief supply official, the latter already having in some cases the title and status of an assist- ant general manager. The man in direct charge of the one general store which is al- lowed each general jurisdiction is called a 176 SUPPLIES AND PURCHASES. storekeeper. The underlying conception is that railroad stores are maintained to help make the wheels go around, that all supply activities should be concentrated upon the most economical manufacture and sale of transportation. This brings us to another phase of the prob- lem. Frequently a railroad as a plant is ade- quate to manufacture more transportation than it can sell. The other fellow is getting too much of the competitive business. Investiga- tion often shows that railroad solicitors can sell a shipper no freight or passenger transpor- tation, because his salesman receives no orders from the railroad's purchasing agent. The in- dustrial bureau of a traffic department works to create new business which is fostered by dis- criminating freight rates. Yes, I stand up and use the word "discriminating," because, when properly understood, it implies intelligence and science, and is therefore one of the finest words in the language. This good work of the traf- fic department in creating wealth and develop- ing industrial communities in territory local to a particular road may be largely lost to that road because its purchasing agent, con- sciously or unconsciously, fails to exercise 177 LETTERS FROM A RAILWAY OFFICIAL. proper and legitimate discrimination in the performance of his important function. At first blush, in these days of doubting in- sinuation and hysterical aspersion, when a rail- way official is often denied the presumption of possessing common honesty, when the burden of proof is to show him as having average rec- titude, such a statement may be construed by distorted minds as a plea for subtle forms of rebating. Tenuous as may seem the line here between right and wrong, it can in a given case be readily determined. Too often apparent complexities are only the result of an abstruse contemplation of abstract possibilities. Give honest, fearless, practical treatment to each concrete case as it arises, indulge more in in- ductive reasoning which predicates laws upon facts, not facts upon laws, and complexity gives way to common sense. Transportation is the most exacting, the most diversified, the most far-reaching of commercial and industrial activities. It follows then, under the law of the survival of the fittest, that those who can survive in the art and science of transportation must be the fittest of the fit. In their hands can safely be left the solution of these difficult problems. 178 SUPPLIES AND PURCHASES. After three years of satisfactory experience with division accounting bureaus, the Harri- man Lines have extended such activities to in- clude the division stores. This is done by moving the division storekeeper, his account- ing and correspondence clerks, to the division superintendent's office in order that division records may be consolidated in one file and division accounts in one bureau. A division material-on-hand account is included. The necessary issue clerks, foremen, etc., are left at the storehouse, which is often a mile or two from the superintendent's office. Another avowed object is to get the division supply people closer to the train sheet, to give propin- quity a chance to develop love, and to counter- act that we-are-so-different feeling which comes on many railroads, not only in the spring, but under all signs of the zodiac. The. logical development on divisions of consider- able volume of supply business will be to make the division storekeeper an assistant superin- tendent. This method of store accounting is relatively closer to real transactions, especially where the division supply train is used, than might be supposed. On the Hill lines, the store accounting is done in the general auditor's of- 179 LETTERS FROM A RAILWAY OFFICIAL. fice, perhaps one or two thousand miles from the store itself, a decidedly long range propo- sition. Which policy is better is of course a question of opinion. A man's views on organi- zation and methods are largely a matter of temperament and association, just as his poli- tics and religion depend usually upon heredity and environment. Affectionately, your own, D. A. D. 180 LETTER XVII. CORRESPONDENCE AND EXPLANATIONS. Portland, Ore., July 29, 1911. My Dear Boy : The man who is successful in the exercise of authority soon learns to be something of a buffer between his superiors and his subordinates. He learns to temper justice with mercy. In this little railroad game of ours there has often been an unconscious departure from this rule of conduct. The word "why" should ask for an increased over- time rate in its next working schedule. Some- body at the top is peeved because a train comes in late. He asks the next man below, "Why?" Down goes the inquiry through the baskets of offices whose files contain the desired informa- tion, because it is so much easier to write another man a letter than to dig up one of our own. The final inquiry is to a man who has already rendered one report or explanation. It would be a pretty poor sort of recording angel that would register against this underling the 181 LETTERS FROM A RAILWAY OFFICIAL. more or less justifiable profanity in which he then indulges. Up in this part of the country, where they do some mighty good railroading, is a big hearted general officer, who once, during a blizzard, directed his superintendents to order train and engine crews to disregard block sig- nals forced out of commission by the elements. A section foreman went out to change a rail with the traditional one man who could not flag both ways. So the section foreman, with the rail out, relied upon the [automatic] block signal for protection. Along came the train with orders to disregard the signal and the engine landed in the ditch. There was some official talk of discharging the section foreman. The big general officer faced the music and said, in effect, that if any enforced vacancies were to occur he himself must be the man. "Furthermore," he added, "we have learned something; if we are ever again tempted to disregard block signals, we will first notify everybody on the railroad, including the sec- tion foremen." Such manliness is the rule rather than the exception among railroad offi- cers. It is a practical kind of honesty which counts in the great art of handling men. 182 CORRESPONDENCE AND EXPLANATIONS. The lesson to be drawn is that we should all be just as honest and considerate for the man below in the conduct of our offices as in the face to face contact of outside activities. The first thought of an official and of his chief of staff should be to avoid humiliating a subor- dinate. A letter demanding an explanation ac- cumulates much momentum of censure while traveling, perhaps from the general offices, through the channels to an agent, a yardmas- ter, a conductor, or a foreman. The tendency of each office is to unbottle a little more of a never- failing supply of suppressed indignation. By the time the return explanations and apolo- gies have trekked back across the plains to the starting point, the whole incident is often as much ancient history as the days of '49. Yes, we must have explanations for certain irregularities. The taste for such office pabu- lum is more or less cultivated. It is a kind of diet which demands vigilant restraint of appe- tite. It does not increase the self-respect of a faithful old employe to write a schoolboy ex- planation of something that looked badly on paper in a distant office. Actual experience has demonstrated that discipline can be maintained, efficiency increased, and loyalty engendered by 183 LETTERS FROM A RAILWAY OFFICIAL. greater politeness and consideration in official correspondence. Instead of the superintendent or trainmaster writing to a conductor, "Why did you delay No. i at Utopia when you pulled out a draw-bar on the main track on the 32nd ?" why not say, "It is claimed that quicker work on your part would have avoided delay to No. i when your train pulled out a draw- bar, etc." This leaves it open to the man to explain or to let the matter go by default. The employe who lets too much go by default is soon well known to his officers and his cases will receive the special treatment they deserve. Some officials devote more time to the gnat- heel measure of explanations than to a broad analysis which will prevent future irregulari- ties. To some officials, papers on the desk are a nightmare. For the sake of a clean desk they will write unnecessary letters and pass the papers to the men below. The road will not go to pieces if many papers are held for a personal interview next trip. Because it is now and then desirable to force some old buck to go on record is no reason for not separating the sheep from the goats and avoiding the neces- sity for a record in a majority of cases. This 184 CORRESPONDENCE AND EXPLANATIONS. is another instance where L. C. L. judgment is worth a whole trainload of rigid bumping posts. Among the many advantages of the chief of staff should be his ability to prepare explan- ations for higher authority from routine re- ports at hand without making a special refer- ence of papers to offices below. Your old dad takes considerable pride in the fact that he never consciously wrote a sharp letter to a subordinate. Once, when a train- master, and sick in bed, he dictated in a letter to a conductor, "Hereafter, please take suffi- cient interest to see that switches are properly locked." The stenographer improved the phraseology by writing, "Please take special interest, etc." see the difference? which happy circumstances caused the conductor to come to the sickroom and express his undying devotion to the cause of locked switches. A personal interview with a conductor, how- ever, is worth a dozen letters by a train- master. These same observations apply to the gen- eral manager as well as to the trainmaster. The higher one goes, the more consideration must he cultivate. If you have something dis- 185 LETTERS FROM A RAILWAY OFFICIAL. agreeable to get out of your system and the typewriter is your only recourse, take it out on your superiors rather than your subordinates. It is better for the company to have you fired for insubordination than for you to demoralize the service by rawhiding men below. You must carry out the policies and instructions of your superiors. The success of your adminis- tration will depend upon the manner in which you execute the wishes of your superiors and upon the methods you pursue, as much as upon the inherent merits of the policies themselves. Flattering yourself, as you probably do, at be- ing the happiest of the happy in the medium line, see how safe a middle course you can steer. It will take another generation to eradi- cate feudalism in railroad administration. Those whom Fate, opportunity, or desire has landed in the railroad game must abide by the existing rules. If out of accord with the poli- cies of those above, be a good sport and resign like a gentleman. Before doing so, however, be dead sure that you have not mistaken some trifling inconsistencies of methods for real incompatibility warranting voluntary sepa- ration. A good friend and a good superintendent 186 CORRESPONDENCE AND EXPLANATIONS. down south recently asked me to preach a lit- tle on the necessity for a more dignified tone in railway correspondence. He cited his cor- respondence with government offices as an ex- ample of dignified expression. Instead of say- ing, "Please advise me," or, "Kindly let me know," or "I wish to be informed," they use some such impersonal expression as, "Please advise this office," or "Kindly favor the de- partment," or, "This bureau desires informa- tion concerning, etc." Some people say they like to have an official or an employe act as if he owned the property. I would not. A man will ride his own horse to death. When acting as trustee, guardian, or fiduciary, he will per- haps conserve the property entrusted to his charge more carefully than if it were his own. Is not a careful trustee better than a careless owner? Railway officials are trustees as well as hired hands. Through long traditions of service, the government officer, however ham- pered by certain limitations that are inherent in government administration, forms a habit of mind which prompts first attention to his employer rather than to himself. On railways we are equally loyal, but are cruder in our man- ifestations. We have the feudal conception of 187 LETTERS FROM A RAILWAY OFFICIAL. "my railroad" rather than that of "the rail- road on which I have the honor to be em- ployed." Following the same reasoning, it is better for a man to sign, "John Doe, for and in the absence of the General Manager," than "Rich- ard Roe, General Manager, per John Doe." When John Doe acts in the place of Richard Roe, the former has become the representative of the company, rather than a facsimile of Richard Roe. The act of John Doe binds the company, and the papers should show on whom personal administrative responsibility must be fixed. The phrase, "For and in the absence of," explains to the recipient the departure from normal procedure, and to the company's future reviewer is John Doe's explanation or apology for seeming usurpation of the func- tions of higher authority. When you have signed a letter, no matter by whom suggested or prepared, it becomes your act for which you are responsible. Do not have its effect weakened by showing in the corner of the original the initials of the per- sons dictating and typewriting. Whether or not such initials shall be shown on your file car- bon for the sake of future reference is a mat- 188 CORRESPONDENCE AND EXPLANATIONS. ter of taste. Such carbon copy record can be made either by a rubber stamp or by typewriter. With the latter method some stenographers prefer to slip in a piece of heavy paper to blank the original and to save the trouble of remov- ing the outer sheet from the machine. The point is that, however desirable such informa- tion may be for your own office, it is no con- cern of the recipient of the letter. It is much more important that the carbon copy should show by rubber stamp or otherwise who actu- ally signed the original and became responsible for that completed stage of the transaction. The impersonal form of address used in government correspondence precludes the ne- cessity for printing the names of officials on letter heads. Illegible signatures are a pretty poor excuse for attempting to issue an official directory in the form of a letter head. The working conception of the self -perpetuating corporation falls short if we must alter or re- print our stationery every time an official is changed. We are wont to look upon government ad- ministration as typical of conservatism and cir- cumlocution. Some things we do much better than the government. There are things the 189 LETTERS FROM A RAILWAY OFFICIAL. government does much better than we do. For example, an officer of the corps of engineers in the Army does his own disbursing. He con- trols all the component functions of his par- ticular activity, including supply and purchase. He is checked up after the fact by an auditor in Washington. A railway cannot pay most of its bills until six or seven persons sign a voucher. Number seven signs perfunctorily because Number six did. Number six likewise is the cat that killed the rat that ate the malt that caused the voucher in the house that Jack built. It all comes down to some responsible man who handled the matter in the first place. Why not trust him, and perhaps one other, checking them both after the bill has been promptly paid ? A bank check is validated by only one genuine, creditable indorsement. If drawn to bearer or to self, only one signature is necessary. I am optimistic enough to be- lieve that you will live long enough to see railways follow the example of the banks and the government and pay a legitimate bill with one, or at the most two signatures. When this is done, however, I trust that due notice will be given, so that the seismograph stations may have fair warning. If all the old time 190 CORRESPONDENCE AND EXPLANATIONS. auditors turn over in their graves at the same time, the earth will tremble and the shock will be too great for delicate instruments. Affectionately, your own, D. A. D. 191 LETTER XVIII. ORGANIZATION OF THE IDEAL RAILROAD. Spokane, Wash., August 5, 1911. My Dear Boy: Someone has asked me how far up and how far down the principles of the unit system and the chief of staff idea can be applied. It is too bad the answer is so easy. Otherwise we might inaugurate a guess- ing contest and offer prizes. The unit system is applicable to every phase of modern organi- zation. When its principles are better under- stood, you will see develop in the great finan- cial centers some such important title as vice- chairman, in order that rank and authority may be conferred superior to that of the presi- dents of the constituent properties. Both the chairman and the president need a senior vice- chairman and a senior vice-president, respec- tively, to act as chief of staff. The New York Central once had a senior vice-president, W. C. Brown, and the St. Louis & San Francisco created the same position for Carl Gray. When these two able men became presidents, their 192 ORGANIZATION OF IDEAL RAILROAD. former positions were discontinued. Puzzle: Find the reason. Answers to be sent to the Puzzle. Editor, Louis D. Brandeis, Boston, Mass. A prominent railway executive, who is also a distinguished bridge engineer, said to me, "You must be patient until railway people can measure this big idea in their own little half bushels. I did not see it clearly until I thought it through in terms with which I am familiar. I reverted to my graphic statics and measured organization as a bridge truss. This showed the chief clerk as a short ordinate be- tween the longest, the head of the unit, and next longest, the official second in rank. We would never design a bridge that way, for the short ordinate in between would break under the strain. You interpose the chief of staff and diminish your strains logically to suit the decreased resisting power. Why don't you show the old telegraph men and the electric people the same idea in terms of things with which they are most familiar? They should see that you can not step down your potential through an undersized transformer." Railroad administration is usually said to be divided into four real departments, namely : 193 LETTERS FROM A RAILWAY OFFICIAL. the executive, including legal and financial, the traffic, the operating, including maintenance and construction, and the accounting. Most railroads place each of these departments in charge of a vice-president. I think that this is usually a mistake. Experience has demon- strated the practicability of the same man be- ing a division master mechanic, for example, and at the same time performing some of the broader duties of an assistant superintendent. Likewise an assistant general manager can act as the head of the mechanical bureau in the general office. When we reach so high as to go beyond the heads of real departments we find our old friend, volume of business, and his bastard brother, unbalanced administration, to demand more balance wheels. The unit has become of too large a size for a single gov- ernor. If you don't believe this, watch some- body try to transfer a bureau, freight claims, for example, from the department under one vice-president to that of another. When I incorporate and organize that ideal railroad it will have a president, a senior vice- president and as many other vice-presidents as may be necessary. The vice-presidents will be real assistant presidents, not heads of depart- 194 ORGANIZATION OF IDEAL RAILROAD. ments. Each will be an expert graduated from some particular department. Such graduation will depend more upon the man being big enough for a vice-president and possible presi- dent than upon the department itself. Since volume of business warrants separation of the financial and the corporate from the legal, and of passenger from freight traffic, I shall have seven departments, under seven general officers, namely, the general inspector (who will also be the comptroller), the secretary, the general treasurer, the general manager, the freight traffic manager, the passenger traffic manager, and the general counsel. Each of the seven departments will have its own office file. All of the vice-presidents will have one consoli- dated office file in common with the president. Trusting that these few lines will restrain you for a brief period, which is Boston & Al- bany for hold you for a while, let us consider the application of the unit system to a humbler sphere, that of roadmaster or track supervisor, who is the head of a highly important sub-unit of maintenance organization. The roadmas- ter's clerk is usually paid less than a section foreman. As a result such clerk is either a callow youth looking for speedy transfer or 195 LETTERS FROM A RAILWAY OFFICIAL. an old man married to the job. In the latter case, after one change in roadmasters the clerk probably dominates the office. He puts so much fear of paper work in the minds of the section foreman that few aspire to be road- masters. Instead of a clerk, why not have an assistant roadmaster, a real understudy, pro- moted from section foreman at a slight in- crease in pay and allowances? Get the work- ing atmosphere of the section into the roadmas- ter's office. Perhaps some of the section fore- men are not relatively as stupid as certain su- periors who take snap judgment on possible qualifications. Some people deny the necessity for a roadmaster's office. Is it not rather diffi- cult to hold a man responsible without giving him access to first hand records of perform- ance ? An assistant superintendent or an assist- ant general manager can and should come to his own headquarters where there are clerks to furnish him necessary information. A road- master away from division headquarters can- not gain such contact without deserting the subdivision for which he is responsible night and day. He cannot well take the section fore- man from work to compile statistics. When the word superintendent is eliminated 196 ORGANIZATION OF IDEAL RAILROAD. from all higher titles so that it means the head, and a real head, of an operating divi- sion, there will be a bigger return for that item of operating expenses known as "superintend- ence.'' If the notion still lingers that opera- tion is merely train movement, and that it is enough for a superintendent to be a high class chief dispatcher, the idea of real management can be driven in by calling the head of a divi- sion a "manager/' In such case, the title gen- eral manager would have a logical meaning. The title district manager would fit the case where subdivision into such territorial units became unavoidable. When the telegraph, the telephone, and the phonograph were invented the Greek language was consulted and new words were scientifi- cally coined to express a new necessity of lin- guistic expression. The automobile and the aeroplane are founding whole families of new words. As society and industry become more highly organized it may be necessary to coin new words to convey the full idea of the rank and duties of the human elements in a large organization. Critics of the unit system de- plore the uniformity of titles as tending to merge individual identity. This is not the 197 LETTERS FROM A RAILWAY OFFICIAL. fault of the system but of the poverty of the English language which lacks varying termina- tions of root words to express different shades of meaning. If necessary to meet this view helps can be sought from such highly inflected languages as Greek and Esperanto, and new words coined. Thus the same word with a slightly different ending would mean, "assist- ant superintendent in charge of maintenance of way and structures as classified by the In- terstate Commerce Commission," or, "assist- ant superintendent in charge of maintenance of equipment, including an allowance for de- preciation at the legal and constitutional ratio of sixteen to one, expiating the crime of 1873 and glorifying the Hepburn Act of 1906." Many practical things in this world escape attention because they are so close as to be inside the focal distance. The persons most concerned are often too close to a proposition to observe what should be distinctly obvious. I uncover my headlight to the fellow down East who recently showed us all that green flags can be replaced by the night markers. For the over-specialization of perishable day indicators he substituted the all-round day and night marker. The supply people should not 198 ORGANIZATION OF IDEAL RAILROAD. kick at the decreased demand for their prod- uct. They should be thankful, rather, that rail- road officials did not wake up sooner to changed conditions. The new practice is worth the price of admission if it only serves to do away with the delay and inconvenience of loading and unloading the time-honored and cumbrous train box which still roams wild in some regions covered by the Spokane rate deci- sion. Among the other simplifications which time will bring is a logical method of designat- ing extra trains. To-day we tell a man that an engine number means little, because the train indicator says that it is train so- and-so. The numbers on the engine and on the train indicator are different and have no relation. To-morrow the engine runs extra and the two numbers must be iden- tical. When we adopt the train indi- cator, should we not banish numbers from the outside of our engines and tenders? Should not the number be inside the cab to be consulted for reports and statistics, including the train sheet ? This would mean that extras would be numbered consecutively in a series higher than the numbers on the regular trains. 199 LETTERS FROM A RAILWAY OFFICIAL, Extras, like regular trains, would lose their running rights in twelve hours. In this con- nection, did you ever figure that, except pos- sibly in the case of extras, the distinctions "A. M." and "P. M." are superfluous on train orders? Should P. M. come before the order is fulfilled, the A. M. train is dead. The proposed change would force regular trains to be numbered in lower series, regard- less of divisions and branch lines. This would make for safety. The more figures in a num- ber, the greater the possibilities of error in reading a train order. A man is much more likely to confuse 2347 with 2345 than 47 with 45. If the motive power bureau must recog- nize the high numbered union for classifica- tion purposes, let us avoid having the blooming series federate with the train dispatcher's order book. The magnificent distances of this western country are reflected in increased difficulties in railway operation. Perhaps no branch of the railway service is more affected thereby than the dining car service. American travelers, as the colored soldier said about the Cubans, are the "eatin'est lot of people." The long haul for cars and supplies renders supervision more 200 ORGANIZATION OF IDEAL RAILROAD. difficult and deficits correspondingly greater. The dining car man on most, if not all, west- ern roads is attached to a losing game. When poverty comes in at the door, love flies out at the window. The dining car superintendent is kept busy retaining the affections of the man- agement in the face of red figures. A dining car is about the most complex proposition in its operation that we have on the railroad. It will be the hardest to bring under the supervision of the division superin- tendent and his assistants. The difficulties of so doing are many, but are not insurmountable. The dining car, because it moves on wheels, is an incident to the manufacture and sale of transportation. It is not, as a few dining car people suppose, merely a traveling hotel to which the railway is an incident. Originally the dining cars were under the passenger traf- fic department. Later it was realized that they are logically a part of operation. So they have been placed under the general manager and his subordinate, the superintendent of dining cars. We say nonchalantly that the superin- tendent and the train conductor can instruct the so-called conductor of the dining car. Let a passenger conductor report a dining car con- 201 LETTERS FROM A RAILWAY OFFICIAL. ductor. The former's superintendent will probably find himself helpless to defend his man against the momentum of a correspond- ence bureau located in the general offices. As a result, the superintendent and the passenger conductor soon lose interest. They are not looking for trouble and possible censure. The outcome is long-range supervision of a central- ized activity. The man in charge of the din- ing car should be called steward, because he cannot conduct a car even to a side track. He should be under the control of the train con- ductor, whom the superintendent can hold re- sponsible for the entire train performing proper public service. A good, honest passen- ger conductor can secure and retain more busi- ness for the company than two traveling pas- senger agents. The conductor cannot do this if the dining car man is unwilling to send promptly a pot of coffee to the shabby little sick woman in the chair car whose daughters are going to buy tourist tickets next year. In the days of simpler organization the good old passenger conductor would unload on the prairie a short-sighted sleeping car or dining car man and let the latter walk home. Because this cannot be done to-day is one of the rea- 202 ORGANIZATION OF IDEAL RAILROAD. sons for the lack of initiative on the part of the train conductor. The lack of courtesy sometimes shown by employes is not infre- quently the fault of heads of would-be depart- ments whose tenacity for departmental lines leaves subordinates with an unbalanced notion of the necessity for real courtesy and consider- ation. Bowing and scraping do not alone con- stitute politeness. One of the best dining car superintendents in the country is Tom Clifford of the Erie, a graduated division superintendent and passen- ger conductor. Because they are general of- ficers, the dining car superintendents of the fu- ture should be assistant general managers, and should come up from the grade of division su- perintendent, in order to acquire a more com- prehensive knowledge of operation. Just how to work out all the details is, I confess, per- haps the hardest operating problem that I have yet tackled. Pullman employes have a home terminal and a home district to whose superin- tendent certain reports are made and com- plaints referred. This works well, although Pullman cars may run over several of their superintendents' districts. The fact that din- ing cars run over more than one division is 203 LETTERS FROM A RAILWAY OFFICIAL. not of itself a sufficient reason for the em- ployes being under the immediate direction of a general officer. Volume of business, density of traffic, shortness of runs, and other causes may warrant varying applications of the un- derlying principle. Above all, we should avoid those hard and fast rules which even the Medes and Persians never attempted to make applic- able to dining cars. Affectionately, your own, D. A. D. 204 LETTER XIX. THE ENGINEERING OF MEN. Chicago, August 12, 1911. My Dear Boy : As the old order changeth, yielding place to new, the last of the feudal barons among the chief engineers are passing. Bold have been their conceptions, faithful their performances and great their achievements. Their work has developed those splendid types of manhood which are characteristic of the futile struggle of nature against art, of the wilderness against civilization. Partly because of better intellectual training, partly because of the rush to complete addi- tions and betterments and partly because of the inborn tendency of human nature to over-spe- cialize, the construction men of most railways have frequently put it over on the so-called operating men. Peace hath her victories no less renowned than war. As civilization ad- vances the struggles of a railroad are less against physical nature and more against so- ciological and political conditions. This ad- 205 LETTERS FROM A RAILWAY OFFICIAL. vanced stage makes for altruism and compre- hensive cooperation. The problem of the con- struction engineer becomes harder when his work is interwoven with the necessities of everyday operation. A manufacturing plant can sometimes shut down during a period of new construction. A railway, however, can- not store its product, transportation. Some car wheels must be moving all the time. It follows, then, that construction must yield to operation rather than operation to construc- tion. Again, from the nature of a railway, construction is a component of operation, and the whole is greater than any of its parts. During the period of rapid expansion the construction men were kept "on the front." Here is another bet that our predecessors over- looked. Instead of amalgamating construction with operation and developing a corps of all around men they sacrificed the future. The result is two sets of specialists lacking sym- pathy with each other's difficulties. The point of convergence is the company's treasury, which pays unnecessary bills. Sometimes these are in the form of a duplication of work train service; sometimes in idle equipment in which the construction bureau retains a proprietary 206 THE ENGINEERING OF MEN. interest on days of idleness. The construc- tion people may be awaiting material or men. Meantime my work train cannot be used by the superintendent for maintenance purposes. The chief dispatcher has so little sympathy with new construction that the young assistant engineer dare not let go of my engine lest an revoir may mean good-by. Another delightful but expensive duplication occurs frequently in the matter of stores. Look around and see how many separate stores your construction bureau is maintaining, some of them within a stone's throw of a well stocked permanent store. After defying a few times the official light- ning our wise construction Ajax learns to make his estimates large. Having beaten his own figures he exclaims, "Behold how much money I have saved the company." Comparisons of costs in construction work are much more difficult than in operation. This inability to control disbursement through the discipline of statistics should be met as far as possible by the most careful organization. Ex- travagance and waste in maintenance and op- eration are bad enough. In construction they are worse, because capitalized and bearing an 207 LETTERS FROM A RAILWAY OFFICIAL. interest burden for innumerable years to come. All positions have their inherent tempta- tions. The young engineer in charge of con- struction is tempted to nurse the job because when it is finished he may be laid off. Whether he yields or not, it is a poor kind of organiza- tion that places the temptation before him. Too frequently the construction engineer costs the company money because of his un familiarity with maintenance conditions. Experience in maintenance would help him in construction. Before being entrusted with authority an en- gineer should have experience in both mainte- nance and construction, regardless of the branch in which he may have happened to start. Check up your new branch lines and see how much money being charged to mainte- nance could have been saved if the construction people had better appreciated operating condi- tions. See how many side tracks and water tanks are on curves. Never investigate a col- lision without considering faulty construction and location as factors. One of the easiest ways to save your com- pany money will be to reorganize your con- struction activities. When you decide upon some new line, be it a branch, a second track, 208 THE ENGINEERING OF MEN. or an extension, call a cabinet meeting of all your assistants. Let the supply assistant of your grand opera troupe know at which stand you are to play. Call in the superintendent of the division concerned, with his maintenance assistant. Tell the superintendent that he will be responsible for the new work subject to the instructions of your construction assistant. Let it be understood that the work will be under the direct charge of his maintenance as- sistant, that the equipment will be looked after by his mechanical assistant and the material and supplies furnished by his supply assistant. Throw the whole official momentum of the di- vision on the side of the new work. Under the old order of things the division people do what they are told in helping out the construc- tion, but no more. The proposed organization will beget that extra individual effort which is relatively as profitable as the farmer's extra bushel per acre. At this same cabinet meeting let your superintendent nominate a junior as- sistant to act as understudy for maintenance while his leading maintenance man is treading the construction boards. If, when the job is over, any scrimping has to take place it will not be the construction man who has to drop 209 LETTERS FROM A RAILWAY OFFICIAL. back. Two years hence the maintenance as- sistant will not give you the old song and dance about poor construction causing excessive maintenance, because he himself built the line. There is, of course, a danger that this mainte- nance assistant will be extravagant in con- struction for the sake of a future record in maintenance. You have two checks against this, one through the efficiency of your con- struction assistant and the other through the division accounting bureau, which should handle additions and betterments as separate accounts. Once upon a time I ran across a contractor grading a new line. His organization, the most efficient that I ever happened to see in any line of activity, made that of the railway for which he was working look like thirty cents. He made the grading camp the unit. Each of his sixteen camps was in charge of a foreman who controlled his own commissary, his own timekeeper, his own blacksmith and his own animals and equipment. The first duty of the foreman was to supply his men with grub and his animals with feed. Normally this took two wagons. If he happened to be near the base of supplies he used only one team and put the 210 THE ENGINEERING OF MEN. other on a plow or a scraper. If he happened to be clear at the front he might have to bor- row another wagon and use three teams for supply. The point is that he kept all of his teams working all of the time and never ran out of supplies. The railroad would organize a department of wagons, a department of plows and a department of scrapers, and the foreman who kicked the hardest would have the most grub, even though somebody else was short. These foremen were jacked up if they used poor judgment in accumulating sup- plies and had too much on hand when the next move came. No clerk at the base was allowed to cut the requisition of a foreman. The resi- dent engineers of the railway in charge of the several staking and inspection parties could not procure railway commissary supplies with- out the O. K. of a clerk in the so-called board- ing house department. Another noteworthy feature was the con- stant presence of officials and sub-officials with authority to act for the contractor. A general foreman and two assistant general foremen were riding the line and giving instructions to meet changing conditions. For example, in the afternoon an assistant general foreman 211 LETTERS FROM A RAILWAY OFFICIAL. countermanded an order given by his general manager who had happened to be on the ground in the morning. When a resident en- gineer in charge of a party desired such au- thority he called up the tent of the division en- gineer and gained the desired information from the latter's chief clerk, who was receiv- ing a smaller salary than the resident engineer. I spare your feelings a description of the com- plex methods imposed by the railway account- ing department in marked contrast to the sim- ple common sense practice of the contractor. How much stockholders are paying for main- taining the sacred system of railways I am unable to state. Many administrative crimes are committed in the name of organization. One of the fallacies sometimes introduced by the accounting department in construction organization is to have all the timekeepers re- port to a chief timekeeper, regardless of the engineer or other chief of party. A bright young engineer once told me his troubles in this respect. He was astonished at the differ- ence when he followed the advice to make each party a complete unit with its own timekeeper, the chief of the party being held responsible for proper time keeping as well as for all other 212 THE ENGINEERING OF MEN. duties. This efficient youngster deplored the fact that neither his engineering school nor his official superiors had ever deemed it necessary to give him lessons in the applied science of or- ganization. Never forget, my boy, the immor- tal words attributed to George Stephenson that the greatest branch of engineering is the en- gineering of men. Affectionately, your own, D. A. D. 213 LETTER XX. THE FALLACY OF THE TRAIN-MILE UNIT. Tucson, Ariz., August 19, 1911. My Dear Boy : Do you think it logical and just to pay a train (including engine) crew the same wages for going over the freight district with a light caboose as with 50 or 75 cars? Be careful how you answer. As I understand it, the train-mile was adopted as a unit of compensation for employes on the theory that piece work rewards the de- serving and promotes efficiency. Whatever the merits or demerits of the piece work theory, I have never been able to reconcile its applica- bility to train service. A man operating a machine in a shop can stop or start his indi- vidual machine, can save steam power or elec- tric current without seriously inconveniencing his fellow workers or the general operation of the plant. A railroad train cannot move re- gardless of all other trains on the road. Such independence of function will cause either a criminal collision or an expensive blockade. A 214 FALLACY OF THE TRAIN-MILE UNIT. train must, therefore, move according to a time-table and orders. The space occupied by a train, unlike a stationary machine, is so vari- able that time becomes the essence of the prop- osition. The train crew cannot be allowed that freedom of action which permits of piece work. Too many arbitrary conditions are necessarily imposed to warrant a very extended applica- tion of a practical bonus system. One delayed train will upset the whole day's combination. On the other hand, the task imposed upon a train crew is extremely definite and easy to measure, when the equation can be solved for all the variables. So fallacious a unit of compensation as the train-mile breeds numerous illogical practices. We penalize ourselves every time we run a train without full tonnage. Conditions of traf- fic may demand quick movement regardless of tonnage. When business is heavy terminals are congested and empty equipment is scarce. We all know that the way to relieve congested terminals is to run light, fast trains. This serves a double purpose, relieving the terminals and increasing the earning power of the equip- ment. Unfortunately our fundamental con- ception is so distorted that we mulct ourselves 215 LETTERS FROM A RAILWAY OFFICIAL. in money by doing that which is an obvious necessity. Why not so arrange our methods that we can be rewarded for quick judgment and prompt action? A shop workman sups, sleeps and breakfasts at his own home. A train crew must have in- creased expenses when away from the home terminal. A train crew would really be ahead of the game as far as expenses are concerned if a round trip could be made within the sixteen- hour limit and the away-from-home terminal expenses avoided. We say that demurrage is imposed primarily to hasten the release of equipment. We claim that normally we would rather have the cars than the dollars of demur- rage. If cars are so valuable, how much should we charge ourselves for the hire of the fifty cars which are twelve or fifteen hours getting over the district? We can work out by a mathematical formula the most economical scheme for fuel consump- tion and maximum tractive effort. It is more difficult to devise a formula to express the effect of drastic laws caused by poor service. Attempting to club converging live stock runs in big trains has caused, in some states, legisla- tion covering the movement of stock. Perhaps 216 FALLACY OF THE TRAIN-MILE UNIT. this is offset by the claims save for missing the market with delayed stock. Is it not a sad commentary to think that legislation is neces- sary to make us do what is for our own best interests ? There can be no doubt that for a heavy and regular movement of low grade commodities on two or four track roads the big train is logical and economical. Most of the prairie roads are single track. Most of the distances between the prairie cities are relatively long. Stock, perishable freight and merchandise must have rapid movement. Is it wise under such a disparity of conditions to make the train-mile rigid and sacred? Why not pay men by the hour, with a monthly guarantee, and run trains sometimes light and sometimes heavy, sometimes fast and sometimes slow, to meet actual controlling conditions of traffic? When business happened to be light, equip- ment plentiful, and terminals open we would penalize ourselves in wages for slower move- ment, but would save in fuel, in engine house expense, etc. Just where the economical limit would be, just how it would all work out, I do not pretend to say. I do say, however, that the old methods can be improved when we start 217 LETTERS FROM A RAILWAY OFFICIAL. from proper basic conceptions. I do not be- lieve that we yet understand the relation be- tween increased cost of maintenance of equipment and decreased wages for train crews. Perhaps because I had the honor of braking on a way freight I have never outgrown the idea of the practical trainman that a local freight is a traveling switch engine and a peddler of L. C. L. merchandise. Whatever may be the showing as to per- centage of tractive power utilized I am unable to see the wisdom of a way freight dragging in and out of passing tracks all day with a lot of through cars. The claim is often made that a few big trains can be easily hand- led by the dispatcher, because the number of meeting points is decreased. My own opinion is that this seeming advantage is often more than offset by the unwieldiness of the big train. Fear of censure for delaying some important train makes the conductor "leery" about start- ing and the dispatcher timid about directing a prompt movement. When we begin wrong, how not-to-do-it methods always follow. The chief dispatcher will let freight be delayed in a yard for a full train with power needed at 218 FALLACY OF THE TRAIN-MILE UNIT. the other end, if he can start a light caboose without its being included in the average train load showing. How much better, and how much easier, to run two fractional trains in the direction of unbalanced traffic than one light caboose and another dreary drag! The shipper, only a hard-headed business man, takes the same view. He becomes skeptical of all our statements, before commissions or elsewhere, because of our frequent seeming lack of judgment. Let us not spend too much time in discus- sion as to theoretical possibilities. My asser- tions can be either proved or disproved by ac- tual demonstration. In the next labor agree- ments you make include a stipulation for ex- periment on some division. My prediction is that if you can convince the labor leaders of your fairness they will give the scheme a trial for the sake of more possible time at home. With a full trial the results will speak for themselves. Success in such matters is made possible only by enlisting the most intelligent efforts of all concerned. Let your officials and employes understand that you do not claim to know it all, that you believe in their practical intelligence as well as in your own, that ideas 219 LETTERS FROM A RAILWAY OFFICIAL. are greater than men, and that right wrongs no man. Railroads have grown so fast that our con- ceptions of working units have sometimes out- stripped practical possibilities in performance. Too frequently we make the unit too large. There must be a practical limit beyond which the train becomes too long for an economical unit of movement. The fact that we should have elasticity rather than rigidity in the size of our economical train emphasizes the neces- sity for defining the elastic limit. Practical experience and sound judgment must aid in interpreting and applying not only the laws of matter and physical nature, but the laws of sociology and human nature as well. After the lading for the trip is discharged, the car cannot be sold or abandoned, as was the flat boat which Abraham Lincoln helped to float down the Mississippi river to New Orleans. Have you not seen cars pulled to pieces in big trains, have you not seen freight delayed in a manner to suggest to an innocent bystander that the road was perhaps running its last train and giving its cars their last load ? The inevitable tendency of the big train is to hold back and combine in large lots cars 220 FALLACY OF THE TRAIN-MILE UNIT. destined to the same point and to the same con- signee. When a whole train can be unloaded at the ship's side at tidewater, or at a large consuming plant, the system is ideal. The trouble begins with the small consignee. In- stead of giving him a regular, systematic de- livery of the five or ten cars which he can un- load each day, our tendency is to bring in twenty-five or fifty cars every five days or so, and then express our horrified astonishment at his failure to release promptly. No, we should not run special trains of five or ten cars for each consignee. What we should do is to watch the matter so carefully that we can feel certain we are considering all the factors of expense as well as that of seeming light ton- nage. It may, under given conditions, be cheaper to run light trains than to put on ex- pensive switch engines, to relieve unnecessary congestion in receiving terminals, than to in- crease overtime and demoralize the road by pulling out drawbars when sawing by at short passing tracks. Sometimes money can be saved by balancing motive power as between steep and level territory. As a good soldier and a faithful hired hand you must build up for yourself and your supe- 221 LETTERS FROM A RAILWAY OFFICIAL. riors the best possible record for train load. Carry out the policy consistently and loyally. At the same time study the subject. Do not have to flag in, but be prepared to run as a sec- tion of a better unit of comparison when the train mile loses its first class running rights. Speaking of running in sections, you have doubtless thought how inconsistent and almost criminally dangerous is the method of display- ing signals. We drill our men to watch the rear of the train for the presence of something, the markers, a positive indication. When the markers are seen, the train is complete and the opposing train can proceed in safety. If the train happens to be complete without displaying markers, or the markers are overlooked, the opposing train declines to proceed. An avoid- able delay occurs, but the error is on the side of safety and away from a collision. At the head end, however, we tell our men to watch for the absence of something, the classifica- tion signals, a negative condition. When clas- sification signals are not seen the train schedule is complete and the opposing train proceeds in fancied safety. If the train happens to be incomplete without displaying signals or the signals are overlooked, the opposing train pro- 222 FALLACY OF THE TRAIN-MILE UNIT. ceeds just the same. No delay occurs, but probably a collision, for the error is on the side of danger and toward a collision. The prac- tice should be reversed. The last or only sec- tion should display classification signals. A positive indication should replace a negative. Can the train rules committee of the ladylike American Railway Association beat the Inter- state Commerce Commission to this unpro- tected draw? Cases of such avoidable colli- sions can be cited, even though "we never had one on our road." Some roads prefer special schedules and ex- tra trains to movement in sections. On the good old Big Four we handled everything pos- sible in sections. I think this latter method the better. Theoretically yardmen, section men, tower men and all others should be al- ways prepared for extra trains. Practically, the more information that can be disseminated among intelligent men the more effectively can they cooperate in preventing disaster or delay. There are fewer unlocked switches and fewer unspiked rails when information is not locked in the dispatcher's office and not spiked down by too many train orders. Affectionately, your own, D. A. D. 223 LETTER XXL THE MAN-DAY AS A UNIT. Tucson, Ariz., August 26, 1911. My Dear Boy : If people's eyes were never too large for their stomachs there would be less overeating. If human concepts were never too vast for practical performance there would be fewer disappointments in administration. Because the railroads have grown so fast and have become so large, our imagination has sometimes run too far ahead of our judgment. This is a big world full of big things and big men. The biggest men are learning that big things can be handled and big men developed only by complete treatment of little things and of the so-called little men. This growing con- viction is manifesting itself in various ways. Railways, thank God, are building more divi- sion shops and relatively fewer general shops. Division stores are becoming more and more complete. Division accounting is gaining ground and is paving the way for local dis- bursement. 224 THE MAN-DAY AS A UNIT. The station agent, bless him, is being emanci- pated by the telephone from specialized selec- tion, and is gradually being accorded that rec- ognition which is his due as an all 'round man. In short, our big corporate units are growing in strength only as the smaller units become complete and self-contained. Official solici- tude should be for ton-miles, as well as for train-miles, for car-loads as well as for train- loads. Take care of the mills and the millions will take care of themselves. Above all, study an often neglected unit, the man-day. How much work can each man reasonably be ex- pected to perform in one day? How many days in each year can a man reasonably expect to be employed ? Labor conditions on railways will never be satisfactory until employment can be reasonably constant and continuous. This is a difficult problem, but when enough big men give it attention it will be solved. It probably means more elasticity, more inter- changeability between train service and the various kinds of maintenance, between the lo- motive and the shop, between the railway and allied contiguous industries. The individual is the indivisible unit of society. We must build from him as a unit. Since he is of such infinite 225 LETTERS FROM A RAILWAY OFFICIAL. variety it follows that our sociological archi- tecture must be varied accordingly. Design is staff work. Execution is line work. I do not doubt the ability of one man to direct the carrying out of a scheme practically designed. When one man tells me that unassisted he can furnish a design to meet all requirements I am from beyond Missouri and have to be shown several times. I have been writing you all these things be- cause of interest in you and pride in our pro- fession. With four or five other professions and occupations at command, I stick to the rail- road game because it is the greatest of ancient or modern times. If these letters, written hur- riedly in the midst of a strenuous life, with lit- tle opportunity for revision and verification, have hurt anyone's feelings, I am sorry. Many things in this world are taken too personally and too seriously when intended as only Pick- wickian. If these letters have helped you or any friend of yours, by shattering any false idol or other- wise, they have more than fulfilled their pur- pose. Those to whom fortune has been kind in affording extended opportunities owe to so- ciety the duty of imparting their conclusions 226 THE MAN-DAY AS A UNIT. to their fellows. The recipients alone are qual- ified to judge as to how well such duty is per- formed and as to how far such conclusions are worth while. In this case the duty has been a pleasure as well. To avoid the switch shanty garrulousness of an old brakeman I now give up this preferred run and turn in at the office my lantern and keys. With a father's blessing, Affectionately, your own, D. A. D. 227 APPENDIX THE UNIT SYSTEM OF ORGANIZATION. This system of organization, sometimes called "the Hine system," is frequently mentioned in these "Let- ters." It was originated and installed by their writer while serving as organization expert for the Union Pacific System-Southern Pacific Company (Harriman Lines), 1908-1911, with the title of Special Repre- sentative on the staff of the Director of Maintenance and Operation, Mr. Julius Kruttschnitt. An idea of the system can be obtained from the two following standard forms of official circulars for announcing its adoption: RAIL COMPANY. OFFICE OF GENERAL MANAGER. CIRCULAR NO 191.. The following appointments of Assistant General Managers are announced, effective 191 .. i. Mr 2. Mr 3. Mr 4. Mr . 5. Mr 6. Mr 7. Mr 8. Mr Each of the above named officials continues charged with the responsibilities heretofore devolving upon him 228 APPENDIX. and in addition assumes such other duties as may from time to time be assigned. The titles, General Superintendent, Superintendent of Motive Power, Chief Engineer, Superintendent of Transportation, General Storekeeper, Superintendent of Telegraph, and Superintendent of Dining Cars, will be retained by the present holders or their successors to such extent only as may be necessary for a proper compliance with laws and existing contracts. All persons under the jurisdiction of this office will address reports and communications, including replies, intended for the General Manager or for any Assistant General Manager, simply: "Assistant General Man- ager" (Company telegrams, "A. G. M."), no name being used in the address unless intended as personal or confidential or to reach an official away from his headquarters. It is intended that an Assistant General Manager shall be in charge of this office during office hours. Each official transacts business in his own name and no person should sign the name or initials of another. All persons outside the jurisdiction of this office are requested to address communications, including replies, intended for the General Manager or for any Assist- ant General Manager, simply: "General Manager Co., Bldg " no name being used in the address unless intended as personal or confidential or to reach an official away from his headquarters. General Manager. Approved : Vice President. 229 APPENDIX. RAIL. . . . COMPANY. DIVISION. OFFICE OF SUPERINTENDENT. CIRCULAR NO. . . . 191.. Effective this date this Division discontinues among its officials the use of the titles Master Mechanic, Di- vision Engineer, Trainmaster, Traveling Engineer, Chief Dispatcher, Division Storekeeper, and Division Agent. The following named officials are designated: 1. Mr , Assistant Superintendent. 2. Mr , Assistant Superintendent 3. Mr , Assistant Superintendent. 4. Mr Assistant Superintendent. 5. Mr , Assistant Superintendent. 6. Mr Assistant Superintendent 7. Mr , Assistant Superintendent. 8. Mr , Assistant Superintendent. They will be obeyed and respected accordingly. Each of the above named officials continues charged with the responsibilities heretofore devolving upon him, and in addition assumes such other duties as may from time to time be assigned. All of the above will be located in the same building with one consolidated office file in common with the Superintendent. 230 APPENDIX. All reports and communications on the Company's business, including replies, originating on this division, intended for the Superintendent or for any Assistant Superintendent, will be addressed simply, "Assistant Superintendent" (telegrams, "A. S."), no name being used in the address unless intended to reach an official away from his headquarters, or to be personal rather than official, in which latter case it will be held un- opened for the person addressed. It is intended that an Assistant Superintendent shall be on duty in charge of the division headquarters office during office hours. The designation of a particular Assistant Superinten- dent to handle specified classes of correspondence and telegrams is a matter concerning only this office. Each official transacts business in his own name, and no per- son should sign the name or initials of another. The principle to guide subordinate officials and employes is to be governed by the latest instructions issued and re- ceived. Train orders will be given over the initials of the Train Dispatcher on duty, as will messages originated by him. The modifications of pre-existing organization and methods herein ordered have been carefully worked out to expedite the Company's business by the reduc- tion and simplification of correspondence and records. It is expected and believed that officials and employes will insure a successful outcome by lending their usual intelligent cooperation and hearty support. Officials and other persons above and outside the jurisdiction of this division are requested to address official communications intended for the Superintendent or for any Assistant Superintendent, simply, "Superin- tendent, Division ," (telegrams, "Supt"), no name being used in the ad- 231 APPENDIX. dress unless intended as personal or confidential or to reach an official away from his headquarters. Superintendent. Approved : General Manager. 232 IS DUE * UNIVERSITY OF CALIFORNIA LIBRARY