'REESE LIBRARY UNIVERSITY OF CALIFORNIA 5 Received' , igo ../Iccesxion No. 82940. Class No. J . Digitized by the Internet Archive in 2007 with funding from IVIicrosoft Corporation http://www.archive.org/details/americanrailwaymOOhainrich AMEHICAN RAILWAY MANAGEMENT. ABBBEJSJSES DELIVERED BEFORE THE AMERICAN RAILWAY ASmCIATION, AND MmCELLANEOUS ADDRESSES AND PAPERS. BY HENEY S. HAIlSrES, Formerly Vice-President and General Manager Plant System of Railway and Steamship Lines, Ex-President American Railway Association, Member American Society of Civil Engineers, etc. <^ OF THB ^ UNIVERSITY FIRST EDITION, FIRST THOUSAND. NEW YORK: JOHN WILEY & SONS. London: CHAPMAN & HALL, Limited. 1897. ^^' .-\ ■^ ^ Copyright, 1897, BY HENRY S. HAINES. ROUEBT DRUUHOND, ELKCTROTYPER AND PRINTER, NEW YORK. PREFACE. This is a collection of addresses delivered at the semi- annual meetings of the American Railway Association from 1890 to 1896, and of other occasional addresses. They re- late to matters connected with the management of railways in the United States, and have some value, either as in- dicating opinions prevalent at the time that they were pre- pared, or as bearing upon the development of the American railway system from its inception to the present time. Though, for the most part, produced upon the spur of the moment, as opportunities offered during a busy life, some of them contain information gathered from various sources which cannot be so readily obtained elsewhere. For these reasons it is hoped that their republication in more ac- cessible form will prove justifiable. The discussion of the Inter-State Commerce Commission Reports to 1894, contained in the address on " Rates of Transportation and Cost of Service on American Rail- roads," delivered in April, 1895, has been extended to include the later reports in the concluding article recently written for the purpose, entitled " Value of Railroad Property in the United States, as shown by the Report of 1896 of the Inter-State Commerce Commission.'^ Atlanta, Ga., July 30, 1897. lii 82940 TABLE OF CONTENTS. ADDRESSES DELIVERED BEFORE THE AMERICAN RAILWAY ASSOCIATION. SUBJECT. DATE. PAGE. Field of Useful nesss of the Association April 9, 1890. - 1 Discipline on Railroads October 8, 1890 8 Committee Work of the Association: Train Rules— Car Mileage— Safety Appliances April 8, 1891 16 Cost of Transportation Octyber 14, 1891 2!^ Safety Appliances : Car Couplers April 13, 1892 38 Standard Code of Train Rules : Block System October 12, 1892 62 Co operation in the Consideration of Questions of Railroad Management. . April 12, 1893 76 Labor Organizations October 11, 1893 84 Operating Expenses of a Railroad April 11, 1894 96 Rates of Transportation and Cost of Service on American Railroads April 17, 1895 106 Railroad Organization October 16, 1895 128 Review of the Work of the Association for Ten Years : International Rail- way Congress— Introduction of Amer- ican Methods on Foreign Railways. . . April 15, 1896 140 OCCASIONAL ADDRESSES, ETC. Efficient Railroad Management : Ad- vantages of an Advisory Board to Che General Manager — The Federal Idea of Organization in Civil Gov- ernment Applied to Railroad Man- agement. Republished from " Rail- way Review " October, 1884 153 Classification of Freight Rates: Com- petitive and Non-competitive Traffic ^^- — Just and Unjust Discrimination — Reasonable and Unreasonable Rates — Agreements for Pooling Competitive Traffic. Statement Made to Select Committee on Inter-State Commerce, United States Senate January 18, 1886 187 IV TABLE OF CONTENTS. SUBJECT. DATE. PAOB. Railway Accidents : Their Causes, and Practicable Safeguards Against Them — Analysis of Railway Accidents in the United States in 1892. Paper Read before the World's Railway Commerce Congress, Chicago, 111. . . June 19-23, 1893 227 Railroad Development: Its Past, Pres- ent, and Future. Address Delivered in Federal Hall, World's Columbian Exposition, Chicago, 111., on Railroad Day September 16, 1893. . . 258 A Railroad Man : His Training and Ca- reer. Address Delivered at the Anni- versary Meeting of the Railroad Branch, Young Men's Christian Asso- ciation, New York City June 30, 1894 271 The Roadmaster and Section Foreman. Address Delivered at the Annual Meeting of the Roadmasters' Associa- tion of America, New York City. . . September 11, 1894. . . 286 Proposed Meeting in the United Slates of the International Railway Congress — Introduction of American Methods, Men, and Manufactures on Foreign Railways. Address Delivered at the Annual Dinner of tbe Western Rail- way Clnb, Chicago, 111 September 17, 1895. . . 290 Development of the Construction of Freight and Passenger Cars in the United States : Address delivered at the Thirtieth Annual Convention of the Master Car Builders' Association, Saratoga Springs, N. Y June 17, 1896 298 Value of Railroad Property in the United States, as Shown' from the Re- port of 1896 of the Inter- State Com- merce Commission July 30, 1897 308 ADDRESSES DELIVEKED BEFORE THE AMERICAN RAILWAY ASSOCIATION. FIELD OF USEFULNESS OF THE ASSOCIATION. (April 9, 1890, at Hotel Brunswick, New York.) I avail myself of this opportunity to express my ap- preciation of the honor which has been conferred upon me in thrice electing me to the position which I am now about to vacate, and it seems to me that I can do so in no more fitting way than by describing the field of usefulness which, in my opinion, the General Time Convention could properly occupy. Originating in the necessity for conforming local time- tables to continuous train service, the Northern and the Southern Conventions were so impressed with the incon- veniences of local standards ci time that they attempted, independently of each other, to establish a uniform standard. In making this attempt the two conventions were led to co-operation with such successful results that they next joined in the establishment of uniform train signals. The next step was to a uniform code of train rules. By this time the advantages attendant upon co- operation became so apparent that a move was made toward consolidation, which was effected at Cincinnati 2 AMERICAN RAILWAY MANAGEMENT. in 1886, and the General Time Convention as thus organ- ized completed the Code of Train Rules which is now acknowledged as the standard to which railroad practice must conform. In carrying out these reforms the General Time Con- vention has developed into a well organized association representing the operating departments of most of the railroads in the country. As a member of the committee originally entrusted with the consolidation of the two conventions; as the official head of this consolidated Convention for the past three years, I have watched its development with interest. I have seen it gradually transformed from a sort of mass meeting for the consideration of time-tables into a deliber- ative body of representative men, gathered together from the length and breadth of the land, skilled in every branch of railroad management; a body with a permanent organi- zation prepared to preserve and carry forward the expe- riences accumulated from year to year. I recognize the powerful forces inherent in such an organization and the useful purposes which it can fulfill if directed aright. It is indeed a proper time for such reflections, for, in my opinion, the General Time Convention has now reached a critical period in its development. Originated, as I have already said, for a minor purpose, it has been engaged in the solution of a few desultory problems that have been presented to it. One after another these problems have been disposed of, until at this meeting there is substantially but one subject before it — that of car service. Suppose that subject disposed of, and for what purpose shall the General Time Convention exist ? Fortunately it has now been directed to a subject perhaps equal in im- portance to any which has hitherto demanded its atten- tion — that of safety appliances — one which contains matter of sufficient moment, let us hope, to maintain our interest in the immediate future of our association. But I ask you if the time has not arrived to determine ADDRESSES, AMERICAN RAILWAY ASSOCIATION. 3 whether we shall continue to drift along with each varying current, or whether we shall map out a course for our- selves, and resolutely pursue it. To my mind, this asso- ciation of ours is equal to the consideration of more than one subject at a time, equal indeed to as many as may pre- sent themselves in its legitimate field of operations. I say its legitimate field, and I use that expression advisedly, for * I am of the opinion that it should be restricted to the con- sideration of subjects in which the members have a com- mon interest. This is true of standard time, of uniform signals and train rules, of car service and of safety appli- ances. But those subjects are outside of its field which in- volve other considerations than those relating solely to rail- road practice ;. for instance, questions of policy with ref- erence to traffic which may arouse individual contentions and competitions between members of the association or be- tween the communities which they serve, and which will dominate their discussion even though they do not appear to do so. The issues involved in the questions hitherto be- fore us have been mainly due to a difference of opinion capable of adjustment either by argument or by proof. I maintain, therefore, that the General Time Convention should avoid any subject relating to traffic or revenue, and should confine itself to matters of operation and economy. The field is large enough to occupy all the time that we can devote to the business of our association, and includes matters well worthy of our attention. Assuming then that our proper field is that of operation and management, as distinguished from traffic and revenue, we have next to consider how these matters should be treated. I should say either as they affect our stockholders, or our employees, or the public, for we must bear in mind that, as railroad managers, we occupy this threefold relation. It is in this triple relation that we have considered the questions that have hitherto been pre- sented to us, and that we have now to approach the sub- ject of safety appliances. Treated in this way, there will 4 AMERICAN" RAILWAY MANAGEMENT. be no lack of matter for our deliberations. The march of progress has not yet brought our railroad systems to that condition which leaves nothing further to be desired, and there are improvements in methods and appliances now passing from the experimental stage, in which they are properly the subjects for consideration in technical as- sociations, to the stage in which the responsible manage- ments of our railroad systems must decide whether they will recognize them as sufficiently valuable for general adoption. So it has been with the substitution of steel for iron rails, and iron for wooden bridges, with the estab- lishment of sleeping car lines, with the adoption of con- tinuous air brakes and automatic couplers on passenger trains, and so it will be with similar improvements in methods and appliances. As railroad managers we also handle men as well as material and appliances, and here is a field for our efforts as yet scarcely touched, at least in the way in which I would like to see it treated. A railroad system, properly organized, has its staff, field and line officers, its supply departments, its inspectors, its divisions and districts of operation; in a word, it is an army, whose office is not to slay, not to devastate, but to transport the people and products of a country. This is its function, and to this end all of its efforts are directed; and to accomplish this end successfully discipline is as essential as in a militant organization. With the growth of our business, with the extending area of operations and the increasing number and speed of trains, there must be an increased strictness of discipline and an enforcement of that discipline by penalties as irksome to the employee as in a military army the incessant drill and the penal regulations are to the soldier. A resistance to restraint and reproof, a mutinous tendency, a disposition to oppose the interests of the company in matters indifferent to the employee have been, I fear, encouraged by labor organiza- tions, whose ostensible objects are the pecuniary, moral ADDRESSES, AMERICAN RAILWAY ASSOCIATION". 5 and social welfare of their members. If this spirit is to prevail, the maintenance of that discipline will be im- perilled, which is as essential for their own safety as for the protection of the lives of onr passengers and the property of our stockholders. The rapid increase of railroad mileage and tonnage has led to the enlistment of a mob of recruits in our industrial army as unused to discipline and to obedience to control as they are averse to them. In this emergency railroad managers have been compelled to take this material as it comes to their hands, and to make the best possible use of it ; but with a decreasing ratio of railroad construction this necessity will also decrease, and we will then have time at our disposal to drill the disorderly and disaffected members into a proper state of discipline and to dismiss the incapables from the ranks. For this work to be suc- cessful we must arouse among them a feeling of pride in the organization to which they belong, of respect for their officers, and of interest in the work which they have in hand, which is known as esprit de corps; a spirit which has carried armies through privation, suffering and defeat to victory, and without which no body of men can be con- trolled under adverse circumstances. How to do this with the opposition of labor unions better organized than we are is indeed a subject well worth our consideration, and one which we will have to face sooner or later, whether we like it or not. It would be out of place for me to do more than to indicate the direction which the discussion of this sub- ject would take. I will suggest, however, that when the rapid absorption of outsiders into the railroad ranks shall cease and all questions of wages shall have been approxi- mately adjusted, whether by arbitration or by the effect of supply and demand, the time in my opinion will have arrived to determine the relations between a railroad cor- poration and its employees which should ensure the best re- sults of their labor to themselves, to the company and to the public. Here will come in questions as to permanency of 6 AMERICAK" RAILWAY 3fANAGEMEKT. employment, insurance against injuries, sickness and old age, priority of promotion, recognition of meritorious ser- vices, and protection against abuse on the one hand, and on the other, questions of training for special duties, obedience to orders, respect to superiors, &c., which have occupied the attention of military men for thousands of years, and which have led to the application of certain recognized principles to an army of fighting men that are in many re- spects as applicable to an army of railroad men. Although I know that I have extended these remarks to a considerable length, I feel that I have not covered the ground to my satisfaction until I have touched upon one more point, and that is our relations to the public; for I believe that in this respect also there are matters worthy of consideration by the General Time Convention. We are but too unpleasantly aware of the attitude as- sumed toward railroad companies by the general public. Let this have arisen as it may, whether because of watered stocks or political demagoguery or the discrimination between shippers and communities in the matter of rates, we all know of its existence, we feel it but too sensibly in Federal and State legislation and in municipal ordinances, in litigation, in political speeches, in newspaper abuse. Must this condition of affairs continue ? Is it the relation which must of necessity be maintained between the nation, the cities, the people who have been made prosperous by means of railroads to an extent never dreamed of before, and the companies through whose efforts these great re- sults have been obtained ? To my mind, if the triumphs of war have earned for the soldier the applause of his fel- low-citizens, the triumphs of peace have at least earned for the railroad man the right to decent treatment at their hands. And I hope and believe that there will be an im- provement in this respect with the disappearance of animosity over disputes about matters of traffic and revenue. The great contention as to discrimination in rates k ADDRESSES, AMERICAN RAILWAY ASSOCIATION. 7 nearing an end, for the margin between the rate and the cost per ton mile has now narrowed down to a survival of the fittest. The determination on the part of the poli- ticians to insure competition has but proved the truth of Stephenson's assertion that where competition is possible combination is probable; the prevention of pools has hast- ened the absorption of the weaker by the stronger cor- porations, and the time is approaching when one of two solutions of the railroad transportation problem must be attempted: either a government management or a territo- rial division among private corporations. In no other way can the difference between the rate and the cost per ton mile be reduced to a minimum; that minimum being the lowest acceptable return upon the capital invested. When that time arrives the era of the railroad projector, of the manipulator of stocks, and of the soliciting agent will have passed away. When that millennium has been at- tained the railroad manager will still have problems to solve relating to the safety of life and property, to the commodious and speedy transportation of passengers, and to the prompt dispatch of freight. In the solution of problems of this character, relating to the public, as well as those relating to our employees and to our stockholders, there is a field for the General Time Convention, and it is to this field that I undertake to direct your attention in ex- pressing my appreciation of the honor conferred on me by electing me three times as president of your association. AMERICAK RAILWAY MANAGEMENT. DISCIPLINE ON EAILROADS. (October 8, 1890, at Hotel Brunswick, New York.) In the address which I made in this room, just a year ago, I called your attention to a matter about which I propose to speak to-day at greater length, and I will pref- ace my remarks by a quotation from that address: " A railroad system properly organized, has its staff, field and line officers, its supply departments, its inspectors, its divisions and districts of operation; in a word, it is an army, whose office is not to slay, not to devastate, but to transport the people and products of a country. This is its function, and to this end all of its efforts are directed ; and to accomplish this end successfully discipline is as es- sential as in a militant organization." This is my theme to-day, the subject of Discipline, which I shall endeavor to place before you as it appears to me; to impress you with the importance of viewing it in a broad light as affecting the interests of the public, and of the railroad employee as well as of the stockholder, I am the more impelled to do this for the reason that the purposes for which it is sought to maintain efficient disci- pline upon a railroad are not clearly understood by those who are subjected to it, nor are they always kept in view by those whose duty it is to enforce them. To arrive at such an understanding it may be well to recognize what is meant by discipline, in its broadest sense. Discipline really means a teaching or training, and those who are the subjects of discipline, those who are being trained or taught, are known as disciples or pupils. The object then which is to be attained by discipline is the teaching or training of certain persons, that they may ADDRESSES, AMERICAN RAILWAY ASSOCIATION. 9 be the better fitted for the work which they are to under- take. This is the starting point from which I propose to dis- cuss the question of discipline on a railroad, that is, to look upon it as the training of certain persons for a special purpose, the safe and speedy transportation by rail of pas- sengers and freight, and the persons whom we have in view, the railroad employees, we are to consider as pupils who are to be instructed in the efficient performance of this very important work. They come from the ordinary walks of life, generally before they have attained their majority, not only ignorant of railroad rules and regulations, but with minds un- formed, and possibly with habits already acquired of which they must divest themselves to acceptably discharge the duties required of them. They make their appearance in the railroad ranks as track hands, as brakemen or switchmen, as engine wipers or as messenger boys, and are the raw materials out of which are to be made section foremen and roadmasters, conductors, operators, dispatchers and masters of trans- portation, locomotive engineers and master mechanics, and I have only to look around me to see that from their number, by a process of natural selection, are obtained many of those who have risen to the highest offices in the railroad service. What can I say to impress more forcibly upon you the importance of having correct ideas with reference to rail- road discipline ? . Beginning with the raw material which is to be moulded into serviceable shape, we have first to ask whether this material should not be picked over; that selected which seems best adapted for our service, and that rejected which is evidently unfitted for it; whether that selection or weed- ing out will not be facilitated, and the operation made easier both to those who are to teach and to those who are to be taught, if a preliminary examination were made es- 10 AMERtCA:tr RAILWAY MA^ACEMENT. sential to the employment of all novices in transportation service. Such an examination to be of value, should take the form of an inquiry into the physical, mental and moral characteristics of the applicant in a general way with some farther tests of his suitability for the par- ticular branch of the service in which he seeks employ- ment. Looking to the physical examination it is plain to us all that a man who is deaf or blind is out of place in transportation service, and that defective sight and hearing should be detected before they cause the loss of life or property. The examination might also include a search for serious defects in other organs than those of sound and vision. The mental examination ought to cover certain educational requirements, at least that the applicant should be able to read and write the English language, and have some knowledge of the ground rules of arithmetic. The moral examination should provide for some satisfactory evidence as to the reputation of the ap- plicant for honesty and sobriety. Such a preliminary examination as I have indicated could fairly be required of one who sought a position in which at an early stage in his career he would be called on for some exercise of the qualities I have mentioned. The flagman, the fireman, the telegraph operator should be able to see and to hear, to read and to write, to keep sober and to tell the truth, and it is due to the public that they serve, and to the employees with whom they serve, that their ability to do these things should be" tested be- fore they are tried in actual service and found wanting. The establishment of preliminary examinations should assure to those who had passed them a prescriptive right to employment as opportunity offered, and after it had become well known that the holder of a pass certificate would have precedence for employment over those who were not so equipped there would be no difficulty in ob- taining material so selected for training in railroad service. With the admission of a raw recruit into the railroad ADDRESSES, AMERICAN RAILWAY ASSOCIATIOK. 11 ranks should begin his special training for the particular branch in which he is to serve; the acquisition of manual dexterity in his calling, of aptness in observing and imitating the operations in which he is to take a part, and especially of a knowledge of the rules and regulations which are to guide his conduct. Our experience in rail- road management is leading us to recognize more and more the importance of a thorough knowledge of rules by those who are to obey them. Indeed, what kind of obedience can be expected where ignorance prevails ? Take, for instance, the Standard Train Eules. Eecall the labor expended upon them that they might fulfill their purpose and be clearly understood. They are to guide the train dispatcher, the operator, the engineer, the con- ductor, the flagman, and in the performance of their duties those rules are to be strictly observed. How can you de- mand this of men who do not know what is expected of them ? I therefore insist that the regulations of the com- pany, and especially the train rules, should be taught to the beginner, and that his proficiency in them should be essential not only to his advancement but to his continu- ance in the service. This will call for examination on this particular subject when time enough has elapsed after his entry into the service for any man to have acquired a knowledge of them who had been able to pass the prelimi- nary examination. If these rules are of such importance as to have occupied for months the minds of some of our ablest railroad managers in order to make them a safe- guard against accidents, then it is not asking too much of the employee to show that he knows how to conform to them before placing him where a failure to do so invites disaster. But knowing is one thing and doing another. Many men are able to do things which through indifference or neglect or recklessness they fail to do, and it is not enough that we assure ourselves that our men know what to do to avoid accidents; we must endeavor to be equally sure that 1^ AMERICAN RAILWAY MANAGEMENT. they will apply that knowledge at the proper time. This we should make it their interest to do by the time-honored inducements of reward and punishment. From the high- est heavens to the lowest depths this has been the main- stay of lawgivers, both human and divine, and it must also be ours to ensure the observance of these rules by those who, in the absence of such inducements, would not re- spect them. We have something of this sort at present. We offer promotions and a choice of positions to those who do well, and resort to fines, suspensions or dismissal of those who do badly. But for a system of rewards and punishments to be effective it must be a system indeed. It must as far as possible protect the employee against the results of malice or bad temper or hasty decisions on the part of his immediate superior. A man should lose neither his Job nor his pay except for a clearly-established violation of a rule with which he is familiar; his side of the case should be heard before judgment is pronounced, and the penalty should be graded to suit the extent of his offence. All this requires patience and self-restraint on the part of his judges, and if they are lacking in those qualities not justice but injustice will often be done. It is not sufficient, then, to publish a well-devised set of train rules and feel that your duty as to enforcing them has been done if you suspend or dismiss some one when- ever there is an accident. Your duty requires you first to see to it that every man put under those rules shall know what is expected of him; next, that there shall be such an inspection and supervision of their work that violation of rules are detected before a bridge falls down or a derail- ment takes place or a collision occurs ; and, farther, that punishment shall follow swiftly upon the heels of the offence, not capriciously nor hastily nor abusively, but that the violation shall be brought home so clearly to the offender that he has to acknowledge his shortcoming and in some way to suffer for it. It is not so necessary that the penalty be severe as that it shall be certainly and justly ADDRESSES, AMERICAN RAILWAY ASSOCIATION. 13 iiaflicted. As I have already said, this calls for patience and self-restraint on the part of his judges. But surely the purpose in view is worth all that it will cost, and it is part of the value of true discipline that it acts beneficially upon the superior as well as upon those placed under him. A proper sense of discipline will prevent abusive language or tyrannical conduct as well as disrespect or disobedience. Repeating the language of my previous address, " for this work to be successful we must arouse among our men a feeling of pride in the organization to which they belong, of respect for their officers, and of interest in the work they have in hand, which is known as esprit du corps; a spirit which has carried armies through privations, suffer- ing and defeat to victory, and without which no body of men can be controlled under adverse circumstances.^' This is the spirit which impels the flagman to go back in snow or rain to stop an approaching train instead of skulking in the rear of the caboose; which nerves the en- gineer to stand at the throttle lever when danger is im- pending rather than to loap for life and leave his passen- gers to their fate. This is the spirit which results from training mind and body to do the right thing at the right time, that true discipline which is the foundation of efficient service. I shall not enter into details as to methods. The time is not sufficient to do so, particularly as there is yet another aspect of the subject which I wish to present before I close. For some reasons in some quarters there is a disposition to resent the attempt to enforce discipline and obedience to rules by any penalties, yet as I have said no code of laws has ever been efficiently administered except through the medium of rewards and punishments. The object to be attained is one in which the welfare of the employee is at stake as well as the lives of passengers and the property of the company. It is this view which should be impressed upon the minds of the men as the aim and end 14 AMERICA!^ RAILWAY MANAGEMENT. of rules, that so far from discipline being a degradation to a right thinking man, to one who means to do his duty, it is intended to lift him to a higher grade of usefulness by such training as will the better fit him for it. If with this idea is also conveyed a sense of just treatment, we may hope that these erroneous impressions will be re- moved, and that employees will sustain their officers in their efforts to ensure a prompt compliance with rules, and an impartial and conscientious enforcement of discipline. The traveling public has also an interest in the enforce- ment of discipline, which is brought home to every pas- senger who has been an eye-witness to a train wreck, or perhaps a bodily sufferer from one. It is safe to say that in a majority of cases the immediate cause has been the neglect of duty by an employee. The railroad company may invest millions in bridges, rails, signals and equip- ment, all of the most approved design and construction; the management may keep up with the times in the adoption of devices and rules for the protection of trains, and yet all this expenditure, all this care and forethought be neutralized by the laziness or recklessness of an em- ployee, and a fearful disaster ensue. Here it is that wc should call public opinion to our support. Let its power- ful exponent, the newspaper, blame the president and board of directors if they have been niggardly in expendi- ture or have retained incompetent officials, let it inveigh against the manager or superintendent who has personally failed in his duty, but let it also include in its invective the employee, who, knowing his duty, has failed to per- form it. The courts of the land should aid in this work. The violation of a train rule should be considered as an infraction of the law, and the offender should have to face a jury of his countrymen as well as a railroad court-martial when death and disaster can be traced to his neglect or misconduct. In no way can the newspapers of this country do more ADDRESSES, AMERICAN RAILWAY ASSOCIATION. 15 to increase the safety of railroad travel than by insisting that a violation of train rules should be punished by law. There is yet another and higher view that we should all take of this question of railroad discipline, that which is based upon a sense of duty, of the faithful discharge of the obligations which we have voluntarily assumed, the view that what we have undertaken to do, what we are paid to do, we must do honestly, conscientiously, fearlessly; that view of duty which has been expressed by one of our great thinkers in four lines, with which I will conclude my address: So nigh is grandeur to our dust, So near is God to man, When Duty whispers low, " Thou must," The soul replies, " I can. " 16 AMERICAN RAILWAY MANAGEMEiNT. COMMITTEE WOEK OF THE ASSOCIATION: TRAIN RULES— CAR MILEAGE— SAFETY APPLIANCES. (April 8, 1891, at Hotel Brunswick, New York.) The remarks which I made at our last meeting were re- ceived with so much favor as to encourage me at this meet- ing to say something about the work presently before us. Much of this work is prepared by our Standing Commit- tees, and it is their relation to the departments of railroad management referred to them respectively for considera- tion that I now propose to discuss. The first in point of seniority is the Committee on the Standard Code of Train Rules, a committee to whose ex- perience, zeal and ability we are indebted for that great work which has attracted the admiration of those com- petent to appreciate its value, and which has established the General Time Convention as an authority on this and kindred subjects. When the Standard Code had been passed upon and adopted by the convention, the special committee to which its preparation had been entrusted was not dissolved, but was continued as a standing committee charged with the duty of modifying its provisions as use might disclose its defects, or as alterations might be required to keep it in accord with improvements in equipment or appliances. My own observation leads me to believe that some of its provision could be more readily understood if stated at greater length; and further, that there is a possibility for improvement in the rules for preventing rear collisions, a class of collisions which forms a large percentage of train accidents, and which occur more frequently with freight than with passenger trains. Neither modern practice nor the Code recognizes more than two ways of preventing them — either the bloclr ADDRESSES, AMERICAN RAILWAY ASSOCIATION. 17 system or the flagman. In degree of efficiency these two ways are about as far apart as the poles of the earth. The one, the latest expression of human ingenuity as applied to railway practice; the other, a makeshift, the inefficiency of which is in proportion to the stupidity or indolence of the flagman with whom it leaves the protection of the train. The absolute block system is in principle an abso- lute safeguard against rear collisions, but the great cost of its construction and maintenance precludes its use on by far the larger part of the railroad mileage in this country. In the absence of the block system the Standard Code relegates that extensive mileage to the watchfulness of the flagman, who of his own motion, without waiting for an order from the conductor, is required to leap from the rear of the moving train as soon as he can do so safely, and, armed with red lantern and torpedoes, to plunge boldly into the darkness of night, perhaps facing rain, snow or sleet, hastening with a stout heart toward the headlight of the following train which glares at him as he feels for his footing on the cross-ties upon some lofty bridge or long trestle; or at length he reaches the prescribed dis- tance of twenty-six telegraph poles, or about one mile, plants his torpedoes and listens with eager ear for the signal of recall, and if through haste to depart, or inad- vertence, or evil intent the signal is not given, and his train moves off without him, that flagman may pass the night in solitude, perhaps wet, cold and hungry, or until some train stops at his signal and picks him up. Such are the duties of a flagman, and it takes pluck and endurance to fulfill them. It also takes intelligent judgment to determine prompt- ly under the four rules, making sixty-eight lines of the Code, just when a flagman must go back, how far he must go, and what he must do when he gets there; yet, under the Code and as generally practiced, this important service is entrusted to a novice, to an apprentice in training for promotion as conductor, or to some sturdy brakeman, ac- 18 AMERICAN" KAILWAY MANAGEMENT. customed, it is true, to the hardships of train service, but to successfully avoiding them as well. Either through ignorance, or doubt, or fear of being left, the flagman may linger around the rear of the train until it is too late for him to stop a following train, or he may disappear in the darkness or Just around a curve, near enough to be handy when recalled, taking the chances as to whether a train is following or not. I admit that a compliance with the rules will protect the train, but that compliance rests upon the intelligence and devotion of the flagman himself. That he is often deficient in these qualities is proven by too many rear collisions, and the Code rules, and general practice as well, are both open to unfavorable criticism in depend- ing for the successful performance of an important duty upon the intelligence and devotion of that man among the train crew who has the least experience. We are familiar with the fact that rear collisions can be prevented by maintaining a certain interval of space or of time between trains. The interval of space is positively insured by the absolute block system. The interval of time is insured by detaining a following train at a station for a given time after the preceding train, but that in- terval of time is not insured for any given distance, as in that distance the preceding train may stop or slow down, and the prescribed interval of time be thereby re- duced, and here the flagman intervenes to prevent collisions. If the interval of space can only be preserved by the ab- solute block system, then until that system can be es- tablished and maintained at a cost commensurate with their income, many railroad companies must rely upon preserving the interval of time, and are accordingly in- terested in any modification of the Code rules which will better secure the preservation of that interval. In my opinion, better security lies in relying less upon the intelligence and the devotion of the flagman. One ADDEESSES, AMERICAN" RAILWAY ASSOCIATION". 19 measure which I would suggest does not call for less in- telligence, rather for more, but from another source, and that the engineer. He is generally the most intelligent and experienced man in the train crew; the best acquainted with the curves, grades, bridges, cuts, embankments and other physical characteristics of the road; the best in- formed as to the trains passed and to be met, and when a stop is made or the train slows down at an unusual place, he knows the cause and what the probable detention will be, not only after it occurs, but also before, and can often select the safest place for a stop. It is he, then, and not the flagman, who should determine when the rear of his train is to be protected, and the flagman should act promptly when the signal is given by him, but not before, except in emergencies that can readily be 'magined. By inference the Code gives this authority to the conductor, and by remote implication to the engineer as well, who often avails himself of his privilege to signal the flagman to the rear when in his judgment it is necessary, but pri- marily the burden is put upon the flagman himself to de- termine when he shall go back. I think that if the burden was plainly put upon the engineer to determine and upon the flagman to act, his action would be con- trolled by the most intelligent and best informed man in the crew. But even with this modiflcation of the Code rules the interval of time would not be securely preserved. To secure this I recommend that the Code shall give a more extended recognition to the use of the fusee, which at present is only permissive as part of the equipment of the flagman. How much more valuable in the hands of the engineer ! Whenever he is about to stop or to slow down his train at an unusual place, require him to drop a lighted ten-minute fusee by the side of the track one mile before the stop is made, and the interval of time between that train and one following is positively secured by a sentinel that will not desert its post, by a signal whose unmistakable light will illumine its surroundings, let the 20 AMERICAN RAILWAY MANAGEMENT. wind blow and the rain fall as they may. I am not speaking hypothetically but from experience, and my satisfaction with the fusee used in this way is shared by our officials and employees. Its use does not do away with the protection afforded by the flagman, but rather increases it, for as he crosses a bridge on his way to the rear he feels himself secure against the approaching train so long as he sees that purple light blazing between. If my views are correct there can be found, at a reasonable cost, a better method of protecting the rear of a train than that prescribed by the Code, one available by day as well as by night, for, even then, the smoke from the lighted fusee will attract the attention of the following engineer. The Committeee on Car Mileage, originally a special committee, has, from the force of circumstances, become one of our standing committee. Its delay in attaining re- sults is an evidence of the magnitude of its task and of the difficulties which it has encountered. The objects which it has in view are a more equitable compensation for the use of cars and greater average mileage, and, of the two, the latter is of more importance to the stock- holders who own the cars and to thoge who use them. Consider that there are about one million freight cars in use, and assume that the average daily mileage of each is about twenty-five miles. If that average can be increased by five miles, that means an increase of one-fifth of the total mileage, which is virtually adding one-fifth to the number of cars in use, or 200,000 cars, representing, at $500 a car, a capital of $100,000,000, and with an average daily load of six tons, an additional capacity of 1,200,000 tons per day, and it was with these possibilities in my mind that I said that a greater average mileage is of more importance than equitable compensation for the use of cars. For such compensation to be equitable it should be based upon two factors^ wear and use, as is the case with ADDRESSES, AMERICAN RAILWAY ASSOCIATION. 21 the so-called mixed system, in which the charge for mileage represents the wear, and the per diem charge represents the use. The tendency is strongly toward the adoption of this system, and, indeed, the opposition to it is mainly as to details, partly as to the possibly increased cost of obtaining the information necessary to proper accounting and partly a fear that the change from the straight mileage system may result in increased expense to those companies whose own equipment is not sufficient for their business. But it would seem that the cost of the mixed system ought not to stand in the way of its adoption if that will increase the average mileage, and any increase in the rental balances of debtor roads can be avoided by such an adjustment of the two factors of mileage and per diem charges as will leave the resulting sum about as at present. If this is to be the result; if the debtor companies are to pay and the creditor com- panies to receive the same as at present, then the advocates of the mixed system can only defend it by the assertion that its adoption will lead to a greater average mileage, and their efforts should be directed to sustaining that assertion by facts. It might simplify the problem and hasten its solution if the rental of coal cars and of some other special classes continued to be adjusted as at present. There is another consideration which has intruded into our discussions of this matter, and that is, the different effect of the one or the other system of rental upon com- petitive traffic, which is probably due to a confusion of the terms demurrage and per diem charge. Demurrage is paid by the consignee to the delivering road, and in- cludes not only a charge for the unnecessary detention of the car, but also for the track space thus occupied, as well as for the additional switching and insurance risk. The per diem charge is paid by one company to another for the use of its car, and it is right that such use should 22 AMERICAN RAILWAY MANAGEMENT. be paid for, even though the former chooses to give that use as a gratuity to its customer. We have yet a third standing committee, that on Safety Appliances, which has been constituted so recently as to have had but little opportunity to show results. Its field is as extensive as it is important, and the public, as well as our own members, will await its conclusions with in- terested expectation. Those conclusions will not be of a technical, but of a practical character. The committee will not delve into the records of the Patent Office, nor will it require a laboratory or a test yard. These matters will be left to the several technical associations and to the restless ingenuity of the American inventor. It is for that committee to determine — first, that there exists in some department of railroad operations a necessity for means of safety additional to those in general use, a necessity so extensive or so urgent as to call for united action on the part of our members; next, to ascertain what appliances there are which they consider as suited to meet that necessity; or, if such appliances do not exist, then to state what the requirements are, and to recom- mend that they be brought to the attention of the techni- cal associations, which are organized and equipped for the proper investigation of such matters. The principal aid which the General Time Convention can give to the introduction of meritorious safety appli- ances is to provide for their simultaneous adoption by our members. This will hasten the general use of auto- matic couplers and continuous brakes on freight trains, of improved methods of lighting and heating passenger trains, and of all devices that must be made interchangeable in order to be applied in through train service over con- necting roads, and here is the field for the Committee on Safety Appliances. In this field it will collect and publish statistical information that will be of value because ob- tained at first hand and from authoritative sources. In obtaining this information the committee should have the ADDRESSES, AMERICAN RAILWAY ASSOCIATION". 23 prompt and cordial support of our members; its circulars should have immediate and careful attention in order that its reports may neither be unnecessarily delayed nor based upon scanty or erroneous data. As I stated in my opening remarks, the matter which serves for our semi-annual meetings is the result of the assiduous and unselfish labor of these committees, and to them is due the gradual transformation of the General Time Convention from a schedule making body to an as- sociation of the railroad companies of this country, organ- ized for mutual benefit in the development and solution of problems connected with railroad management. 24 AMERICAN RAILWAY MANAGEMENT. COST OF TRANSPOETATION". (October 14, 1891, at Hotel Brunswick, New York.) Since this body developed from a time-table meeting into an association for the consideration of matters per- taining to the operation and management of railroads, the subjects before it have been in keeping with the official position and professional reputation of those who have taken part in its deliberations. Yet not one of these sub- jects is of such importance to the members of this Associa- tion as that to which I shall call your attention to-day. The end and aim of a railroad is Transportation. While Transportation is its function, by Transportation it must exist. It must be fed from its own products, and the charges for its services must be made with this in view. Whoever pays a freight bill or buys a passage ticket, con- tributes to the fund from which employees' wages and bills for supplies are paid, as well as interest coupons and stock dividends. That is to say, the charge for the ser- vice is composed of two elements — the cost and the profit; and the cost must come first. Stockholders may go with- out dividends and bondholders without interest, but unless the men get their wages they will not work, and supply men will not part with their goods without pay for them. The substance of this statement is that for a railroad to fulfill its purpose, the freight and passenger tariffs, as a whole, must produce a fund sufficient for the cost of oper- ation, and if the fund be insufficient the service will be unsatisfactory. Here we are brought face to face with the problem of making railroad tariffs, a problem about which there has been much making of speeches and writing of books by all manner of men; railroad experts, politicians and po- ADDRESSES, AMERICAK RAILWAY ASSOCTATTOT^. 25 litical economists. We hear much of the average rate per ton per mile and per passenger per mile, as also of the cost of transportation per ton mile and per passenger mile, all of which may have more or less value as information, though it would be difficult to point out its use in the practical operation of a railroad. It is well for the farmer to know the average price per bushel of grain and the cost per bushel for its production; for the iron master to know the average price and cost of production of a ton of pig- iron, or for the manufacturer to know the average price and cost of production of a yard of cloth. The bushel of wheat, the ton of iron, the yard of cloth are units of trade by which the prices of these commodities are fixed, but the ton mile and the passenger mile are statistical ab- stractions and not the units by which the price of trans- portation is fixed. How easy it would be to make a tariff if all articles were transported at a uniform rate per ton per mile, and if all passengers were carried at a uniform rate per individual per mile. But the tariffs in actual use are made up of separate rates on different articles, or on different classes of passengers, for transportation between many places for varying distances. The local passage rate per mile is lost sight of when competition or commutation or excursions are to be considered, and the rate per ton mile is the last thing thought of in making freight tariffs. I do not intend to discuss the making of rates at any greater length. My purpose in calling your attention to the fallacies involved in the average rate and cost per ton mile and per passenger mile will be evident as I proceed, and you will pardon me for repeating, that while the cost of transportation must come out of the charge for trans- portation, that charge is not a uniform rate per ton mile and per passenger mile. What is the cost of transportation ? How is it to be ascertained ? What is the correct definition of the term, cost of transportation ? These are indeed questions of greater importance to 26 AMERICAN RAILWAY MANAGEMENT. the members of this association than any which have yet been before it. They lie at the bottom of most of the differences and dissensions which have arisen between rail- road corporations and the communities which railroad transportation has created. The most ignorant charlatan, the most rabid demagogue, will speak yon fair on this point. They do not object to paying reasonable rates. But what goes to make up reasonable rates ? Here come in the conditions of long and short haul, of competitive and local traffic, of ascending and descending grades, of cheap or costly fuel and wages, and others equally familiar to those whose work-day lives are spent in their considera- tion. And considered they must be in discussing the cost of transportation. Let us begin by defining what we mean by the cost of transportation. Do we mean the cost of operation ? If we do, then we must include the cost of administration, of maintenance, repairs, and renewals generally, as well as the proper cost of transportation. If this be not our meaning, if we mean only the cost of moving freight and passengers, then we must still ascertain the other items which make up the cost of operation. We must ascer- tain them in order to exclude them, and, by eliminating them from the total expense account, arrive at the cost of transportation apart from the other classes of expenditure. What are these classes ? We will classify them as they relate more or less specifically to the movement of freight or passengers, beginning with those the most remote from that service, as, for instance — Class A. — Expenses not affected by amount of traffic. Class B. — Expenses indirectly affected by amount of traffic. Class C. — Expenses affected by train mileage. Class D. — Expenses affected by car mileage. Class E. — Expenses affected by amount of freight loaded or unloaded. ADDRESSES, AMERICAN EAlLWAY ASSOCIATION". 27 On this basis all items of expense of operation can read- ily be assigned to their proper classes. In class A would come the cost of administration, as the salaries and office expenses of the general officers, and all other expenses substantially unaffected by the increase or decrease of traffic. In class B would be included those expenses which are indirectly affected by the fluctuation of traffic, as, for in- stance, certain expenditures in the roadway department. In class C would appear all expenses directly affected by train mileage, such as trainmen's wages and expenses incurred in the maintenance of locomotives. In class D would appear all expenses directly affected by car mileage, by the maintenance of cars, etc. In such a division it will be found necessary to make yet another class, which I shall call class E, to include expenses directly connected with the loading and unload- ing of freight. I shall not refer in greater detail to the distribution among these several classes of the expenses which enter into the operation of a railroad. In actual practice I did this fifteen years ago with great minuteness, and have continued to observe the same distribution of accounts. It has been found invaluable in the discussion of all ques- tions in which an analysis of the cost of operation is desir- able. This collection of statistics recorded for fifteen years in such a form as I have here described has afforded the means for a critical comparison of the effects of im- proved methods upon the cost of operation, for in those fifteen years this particular property has been brought from a very inferior condition into average conformity with modern practice. This classification of expenditures was devised with a (definite end in view, viz.: to ascertain whether we received less from competitive business than it cost us to perform the service. For this purpose, of what value is it to multiply the 28 AMERICAN RAILWAY MANAGEMENT. weight of each shipment made during the year by the number of miles transported, to sum up the results of these calculations into ton miles, to divide by this sum the total annual expenditures and obtain a quotient that we call the average cost per ton mile ? Is this figure of six or seven mills, or whatever it is, the test which managers are to ap- ply to rates on competitive traffic ? Are they to withdraw from competition when the rate falls below this average for fear of doing business at a loss ? Evidently not, for this figure is but the average of a large number of trans- actions, many of which were done at a much lower rate. Yet this is just what it would be valuable to us all to know. When shall we draw out of competition for certain business, because it would be a loss to carry it ? And this is the information which I have sought to obtain. Confining myself for the present to freight traffic, I will ask you to bear in mind that each transaction should be considered by itself, that is, will it pay us to take this article or that at a certain rate from such a place to such a place ? One condition is that of quantity. Is it a single package, a car load, a train load, or many train loads ? Another condition is that of direction. Is the move- ment in the direction in which the greater tonnage moves or in the opposite direction '' This determines whether cars returning empty can be used for the purpose. I take this then as the simplest form in which the problem can be presented. If you have an empty car at Buffalo, we will say, coming to New York, what will it cost you to bring a barrel of flour in that car ? It will cost you the labor of handling that barrel, of billing it and the insurance of the common carrier's risk, and no more. If a car load be moved under the same conditions the items of cost are the same increased with respect to labor and insurance. If your road were an intermediate link in a through line, you would not even have incurred the cost of billing and handling. But if the shipment be a train ADDRESSES, AMERICAN RAILWAY ASSOCIATION. 29 load, there is another condition to be observed, for your engine will not pull as many loaded as empty ears, and your locomotive mileage is accordingly increased. From this reasoning it appears that rather than lose the carriage of a single barrel or of a car load of flour in a car that would otherwise be moved as an empty it would pay you to take it at any price above the cost of handling, billing and insurance, but if the shipment amounts to a train load, then the locomotive mileage becomes an additional element of cost. The conditions change when competi- tive business is offered in the direction of greatest tonnage, for here the carriage calls for additional car mileage and brings in all the items of cost directly affected by car mileage. It is unnecessary for me to proceed farther on this line of argument to show that the first requisite for an in- telligent understanding of these questions is a knowledge of the cost of car service and of train service. This is what you want to know, and not the average cost per ton mile. This is just the kind of information that we have been gathering up on the road to which I have already referred, and it is interesting to note how these items of cost have been affected by the gradual in- troduction of engines and cars of greater capacity, by the variation in wages, by the development of telegraph and station service and by other changes in our ways of operation. Stating the whole matter briefly and in a general way, railroads are not built solely for competitive business — that is, to take away the business which another road is doing. They are usually projected with the idea of de- veloping the country through which they are to be built, of creating business by furnishing transportation facilities without which such business could not exist, of enabling grain to be grown on the western prairies, or coal and ore to be mined in the mountain ranges, or the trees of the forest to be converted into lumber. These 30 AMERICAN RAILWAY MANAGEMENT. are the purposes for which they are projected, and that they fulfill them is shown by the great anxiety to get a railroad built into a country, by the hearty welcome with which the first train is greeted, by the advance in value of the lands ■ and town sites, etc. It follows that those who are the beneficiaries of this investment should at least pay for the cost of operation and maintenance, as they would have to do if the property were their own. This in- cludes the cost of administration and all other expenses, as well as those directly affected by train service or what may be specifically called the cost of transportation. With reference to any particular road, this applies only to such traffic as is solely dependent upon it, for if a certain locality or class of traffic has a choice between two or more railroads, opportunity is afforded for competition. The distinction in this respect between what is known as the local and as the competitive or through business is that the local business of any railroad must pay sufficient toll in the way of passenger and freight rates to maintain that road, or be deprived of the necessary facilities which it affords, while the competitive business, not being de- pendent on it, may be diverted, as interest or other motive may direct. Here it is that the importance arises of knowing what it costs to transport any specific shipment — a knowledge im- portant to the local shipper as well as to the railroad manager, for if the railroad company loses the profit on competitive business, the loss must be made good from the local traffic, at least to the extent necessary to the efficient maintenance of the property. If the farmer, the miner, the lumberman, the manufacturer solely dependent upon one railroad could be brought to understand that the competitive business is paying part of the expenses which they and those similarly situated would have to pay al- together, if that business were lost to the road, they would cease to discourse of the long and the short haul and of the average rate per ton mile; they would only en- ADDRESSES, AMERICAN RAILWAY ASSOCIATION. 31 quire as to the contribution which that competitive traffic was making toward supporting the road constructed for their benefit, and they would regret to see any such busi- ness lost to it. The converse of this proposition is that they are equally interested in seeing that this competitive business is not conducted at a loss, for if it be, then the tolls on the local business must be increased to make such loss good. It has seemed to me that the only sound reason for the regulation of railroad rates by law is thereby to protect those who cannot protect themselves, and this is a case in point. The local shipper ought to be protected against contributing to pay losses on competitive business, because he is in no position to make rates for himself, as the competitive shipper is. And this is another reason for knowing definitely when such a contribution is really made, that is, for knowing the actual cost of performing any specific service. With this idea clearly understood, the freight agent could make competitive rates intelligent- ly upon being told the cost of car and train service under varying conditions. The injunction to " Get Business " would then be modified to get business so long as there is a profit, and the traffic and transportation departments would be brought into accord. Let us return to the question which I asked some minutes ago. What is the cost of transportation ? As I have now developed my subject, the cost of transpor- tation pure and simple, is made up of three elements — the cost of train service, of car service, and of handling the articles shipped or passengers moved. The test to be ap- plied on this basis to any statement as to the cost of transportation, with reference to any particular trans- action, is whether that statement includes any item which would not have been required if that particular service had not been performed. If it does, then the statement is fallacious, misleading, untrue and without practical value to the railroad superintendent or traffic manager. This is the objection to the ton-mile basis. It is of no practical 32 AMERICAN RAILWAY MANAGEMENT. value to these officials in the conduct of their business, for it includes irrelevant items ; but when they learn what it costs their company to bill and handle freight per ton, to run a train per mile and to move a err per mile, they have just the information required to know how low they can make rates for competitive business without paying for the privilege. This ignores all other items of expense in- curred in the operation and management of the road, the cost of maintenance of the track, bridges and buildings, of salaries and office expenses of general officers and of similar items. So it should so far as competitive business is concerned, for as a general ]3roposition, these expenses must be incurred whether any particular competitive ship- ment is made or not. But if the competitive traffic is not to be charged with these items of expense, from what source are they to be paid ? I say primarily from the revenue from local busi- ness, assisted, as may be, by the profit on competitive business; or, to put it differently, to the actual cost of transportation there should be added in making local tariffs an amount sufficient to provide for the expenses in- directly incurred in performing the service; somewhat as in fixing premiums on life insurance, the actuary of an in- surance company adds to the assumed rate of mortality a so-called " loading," to include the cost of management and of other corporate expenses. This is what can be done on a railroad by such a classification of expenses as I have suggested and which I will now repeat, viz. : Class A. — Expenses not affected by the service per- formed. Class B. — Expenses indirectly affected by such service. Class C. — ^Expenses affected by train mileage. Class D. — Expenses affected by car mileage. Class E. — Expenses affected by handling freight. In making rates on competitive traffic the last three classes of expenditure should alone be considered. In making rates on local traffic the first two classes should ADDRESSES, AMERICAN RAILWAY ASSOCIATION. 33 also be considered. But it will be said that railroad com- panies incur large expenditures to handle competitive traffic which under this system of classification would be included in class B. This is true, as for instance in the establishment of extensive stock yards for competitive cattle traffic, or of elevators for grain traffic, or of coal pockets for coal traffic, but these cases are the more readily provided for by reason of this classification, for if such expenditures are not met as is generally done, by specific terminal charges, they should be added as a "loading" to the particular class of competitive traffic as a whole, and would appear as an invariable quantity in the sum total of the competitive rate on cattle or grain or coal, and would not be a charge on the local traffic at all. So it will be seen that such a classification of expenditures is capable of application to varjdng circumstances with a facility and precision not to be hoped for from the ton- mile unit of cost. There is another view that I would present of this plan of classification with reference to the aid which it gives to the intelligent practice of economical methods; for, with such a division of expenditures, any increase or de- crease in the gross amount expended for any particular purpose appears just where it belongs. Defective wheels, axles and couplers add to the cost of car mileage, or class D. Increased wages of trainmen appear in the train mileage, or class C. Additional clerk hire or labor in handling freight affects class E; and items affecting the other classes appear ac- cordingly. By this plan any extravagances or economies are shown up in a practical way as a guide or a warning for the future. The analysis of expenditures so classified serves to show how expenses incurred for the greater comfort or con- venience of the public may affect the cost of train or car 34 AMERICAN" RAILWAY MANAGEMENT. service, and how an increase in the wages of trainmen and yardmen increases the cost of train service which must be made good entirely from local traffic if com- petition, as for grain or other western products, is un- bridled and unrestricted. I have so far said but little about passenger service, mainly, because with most of us the freight business is more important, but there are some points in connection with the former on which I will touch before I conclude. I would wish you to note the absurdity of considering the passenger mile as equivalent to the ton mile, an as- sumption common to railroad statisticians, and for which it would be difficult to give a sensible reason. Even if a passenger weighed a ton, the character of the service per- formed in transporting him one mile as compared with carrying a ton of freight that distance is so different as to make the assumption of equality of the two units to border on the ridiculous. They are so dissimilar that I have kept distinct the items making up the cost of train and car mileage in passenger and in freight service. This is quite another matter from the arbitrary division of all expenses between the passenger and freight traffic, as insisted upon by the Government statisticians, for there are many items included in my classes A and B which bear no relation whatever to the distinctive char- acter of the traffic. That they should be considered in making passenger rates as well as freight rates is true, but, by keeping them separate from the actual cost of each service, their amount is known as well as the pro- portion which they bear to the actual cost of transporta- tion, which is impracticable by the other method. We have also to consider that in class E, or the cost of hand- ling freight, we have an entire class of expenses which has ncthing to do with the cost of carrying a passenger. In- deed the passenger handles himself, and the only items bearing directly upon the transportation of a single pas-. ADDRESSES, AMERICAN RAILWAY ASSOCIATION. 35 senger are the cost of printing his ticket, and perhaps of handling his baggage, if he has any. In some respects the cost of passenger service differs materially from that of freight service. The trains are generally made up of a fixed number of cars and run at stated intervals without regard to the number of passen- gers. The entrance of a single additional passenger in a train adds nothing to the cost of moving that train, and the cost of transporting a single passenger is there- fore inappreciable. What is to be desired is to get the greatest revenue from the train per passenger car, and it might be more profitabb to secure well filled trains loaded to the engine's capacity than to insist on a uniform rate per passenger mile which did not half fill the train. The unit of cost per passenger mile is as fallacious and value- less as the unit per ton mile. A passenger does not meas- ure his desire to get to a place by the number of miles that he must travel to reach it, and whether he goes fifty or sixty miles, it costs the same to carry him if the train be scheduled for the longer distance and there be room for him. This idea of rate for distance does not prevail in making freight rates. What the freight agent wants is loaded cars, and that is what should be sought by the passenger agent, who is himself interested in knowing what it costs to move a passenger train and a passenger car when he is getting up excursion parties or meeting cut rates on business from a distance. The practical value of the units of cost which I have recommended may be briefly illustrated by assuming that the cost of freight train mileage is 20 cents per mile, of freight car mileage, 2 cents per mile, and of handling freight, 10 cents per ton. If twenty tons of competitive freight were offered to be moved in cars returning empty, the actual cost of trans- portation would be ten cents per ton for handling, or two dollars for the shipment. If a larger lot were offered 36 AMERICAN RAILWAY MANAGEMENT. and the train of cars returning empty were thereby re- duced one-third, the cost would be increased by the ad- ditional train mileage thus rendered necessary. But tak- ing an example of a train load, say thirty cars of twenty tons capacity, offered in the direction of greatest tonnage, say for a distance of two hundred miles, the actual cost of transportation would be made up as follows : Handling 600 tons of freight at 10 cents per ton. . $60 00 Car mileage, 30 cars 200 miles, 6,000 car miles, at 2 cents 120 00 Train mileage, 200 miles, at 20 cents 40 00 Total $220 00 which amounts to $7.33J per car load or 36J cents per ton, and on this basis any rate that could be got over these figures would be a profit to the railroad company and a diminution of the burden on the local shippers. How valuable would such information be to the soliciting agent ! You could then trust him to use his talents to get as much higher a rate as possible, feeling protected at least against doing the business at a loss. On the other hand, assume the average cost of one-half cent per ton-mile as applied to this case and you would have a cost of $1.00 per ton or $20.00 per car load to con- sider in competing for this shipment in place of the actual cost of $7.33^ per car or 36f cents per ton. Who ever heard of a soliciting agent being called to account for making rates on competitive business below the average cost per ton-mile as figured by the statisticians ? I may be asked, do you mean to assert that freight can be carried at the rate of $7.33 J per car load for 200 miles without loss ? My reply is that I am not speaking of the entire traffic of a road, but of ascertaining for a specific transaction the lowest rate at which the service can be performed without actual loss to the railroad company. As I have already ADDRESSES, AMERICAN RAILWAY ASSOCIATION. 37 said, any loss in competitive business must be made good out of local revenue, and it is therefore to the interest of local shippers to sustain the efforts of railroad managers to maintain rates on competitive business by any fair means; this would include the legal recognition of agree- ments for pooling revenue from such business under })roper regulations. I have not attempted within the limits proper to this address to cover all the field for discussion which I have brought to view, nor to meet all the objections that may be offered to what I have advanced, but I have sought to im- press upon you the absurdities of the ton mile and the passenger mile basis of rates, and the injustice to railroad managers of using such a basis for measuring their operations and for criticising their management. I have further sought to show how the more rational basis which I have described may be made available for practicable use in the traffic department, and how it may serve as a common foundation on which law makers and railroad experts may build an enduring system of regu- lations in which long and short haul, just and unjust dis- crimination, through and local rates may all find an ppro- priate place. NIVERSIT'^ 38 AMERICAN RAILWAY MANAGEMENT. SAFETY APPLIANCES— CAE COUPLEES. (April 13, 1893, at Hotel Brunswick, New York.) The public interest which has been aroused on the sub- ject induces me to address you to-day on compulsory legis- lation about safety appliances, particularly with reference to freight car couplers. The cause of this interest it is not difficult to trace. Newspaper accounts of yardmen and brakemen injured in coupling cars were emphasized by statistics embodied in the official reports of railroad commissions. Attention being thus drawn to this hazardous feature of railroad service, the opportunity was afforded for sen- sational appeals to the ever-ready sympathy of mankind for those who, fathers, brothers and husbands like them- selves, were stricken down in the fulness of manly vigor and in the discharge of their daily duties. As is common- ly the case when our feelings are aroused, there was a dis- position to lose sight of the necessarily dangerous char- acter of the occupation of these unfortunates, and of the tendency to indifference, carelessness, and even reckless- ness which seems to be inseparable from familiarity with such dangers and from dexterity in avoiding them. The usual desire under such circumstances for a scape- goat was, without inquiry and without reason, focussed upon the inanimate corporations without souls, and their animate representatives and managers, popularly supposed to be equally soulless. The asserted greed of the one and indifference of the other were held forth as sufficient grounds for the belief that they could make it impossible for men to be injured in coupling if they would. This belief, intensified in various ways and from different motives, has led not only to State legislation but to the ADDRESSES, AMERICAN RAILWAY ASSOCIATION. 39 elevation of the question to national importance, by rec- ommendations contained in the President's messages to Congress and by demands on that body for compulsory legislation. This, then, is the foundation on which compulsory leg- islation is demanded: that, in coupling cars, railroad em- ployees are exposed to dangers from which their employers can protect them but will not. As it was recently stated in a leading daily of this city: " There is no good reason to believe that the railroads will soon provide an adequate remedy of their own volition." The correctness of this statement I propose to test by a brief reference to the history of the coupler question, as on this ground alone is compulsory legislation justifiable. The Master Car Builders' Association, composed of rail- road officials in charge of the maintenance of freight and passenger cars, was organized in 1866, and the first notice that I have found of any interest in this subject on the part of any public officials, either State or corporate, is in the proceedings of their Third Annual Convention in 1889. At that Convention Mr. F. D. Adams, now and for many years past on the Boston & Albany E. E., used the following language : " Many of our men employed in coupling trains are injured and lives lost because draw- heads do not come into line, one being high and another low, thus driving by and crushing the man that is in the performance of his duty, or maiming him, frequently for life. " It is a duty we owe to the companies that we represent, and a duty that we owe to our fellow-men, who are necessarily placed in positions that endanger them, to adopt some height that will be uniform." You will see from this reference that the attention of railroad officials was first called to the varying heights of drawheads and couplers as the cause of danger and of injury to railroad employees. 40 AMERICAN EAILWAY MANAGEMENT. At the next Animal Meeting Mr. Adams was elected President and a committee appointed to report on a uni- form height for passenger car platforms. At the meeting in 1871 this height was fixed at 33 inches for all cars, pas- senger and freight. At the seventh annual meeting, in 1873, Mr. M. N. For- ney, a gentleman well known to us all, " called the atten- tion of the Convention to the great number of accidents and loss of life occurring from the present method of coupling cars," and '^ thought the Convention should take some action in the matter, with the view of remedy- ing the evil so far as it could be done. He would, there- fore, move that a committee be appointed to report at the next meeting.'' Accordingly a committee was appointed '^ on best device to prevent accidents while coupling cars." This committee reported at the meeting in 1874 that it had sent out a circuLr to the railroad companies, and that " the general opinion as expressed in the replies received is to the effect that the variations in the height of drawbars is one of the most fruitful sources of accidents. So long as persisted in we do not think that any self-coupling drawbar can have the benefit of a fair and impartial trial. Many of our leading roads have given quite a number of self-couplers a trial, but, judging from their remarks as to how they answered the purpose for which they were in- tended, it would seem that they generally had failed." At the same meeting the Standing Committee on Draw- bars and Buffers, of which Mr. F. D. Adams was Chairman, reported "that a great advantage would be derived from a uniform drawbar, such as would be accepted as a stand- ard and which should also be a self -coupler; but we are not prepared to say that any has as yet been invented that is worthy of such acceptance." This report, made in 1874, seems to be the earliest official recognition of the value of the so-called automatic coupler, now so familiar to us, and it will be seen that the general use of couplers of a uniform height was looked ADDRESSES, AMERICAK" RAILWAY ASSOCIATION. 41 upon as a condition which must necessarily precede the adoption of a standard coupler, for the self-coupling prin- ciple to be made available. From this time we find the Association earnestly working to this end, and the success which it ultimately attained in establishing a uniform height really made it possible to use automatic couplers at all. At the ninth annual meeting, in 1875, the same Stand- ing Committee reported that it had " examined a great variety of new models and plans which are claimed by their inventors to be improvements, but have seen nothing that meets the demand. The drawbar should be a self- coupler avoiding the use of links and pins." This is the first appearance of a principle now well established in our minds. The report further shows that the committee were actively engaged in the search for a suitable standard coupler. The motive which actuated them was well ex- pressed, by Mr. Hopkins of the New York & New Jersey E. E. : " This Association is in duty bound to furnish some device that shall save the great number of lives an- aually sacrificed by the coupling of cars." At the eleventh annual meeting, in 1877, Mr. Kirby, of the Lake Shore & Michigan Southern E. E., said that his company intended to equip one hundred cars with self- couplers. The President, Mr. Garey, of the New York Central & Hudson Eiver E. E., stated that he had been waited on by a committee of yardmasters. They said : " We don't care anything about self -couplers, but only give us some- thing, so that we can be sure that we won't be crushed in getting between the cars. Give us deadwoods right over the drawbar." Mr. Adams said : " I firmly believe we are in duty bound, as an Association, to listen to the ap- peals of these men." This appeal from the yardmasters turned the attention of the Association to the proper dimensions and location of deadwoods, notwithstanding the assertion of Mr. Suth- 42 AMERICAN RAILWAY MANAGEMENT. erland, of the Canada Southern R. R., that " few railroad companies would be satisfied with anything short of an improvement that would entirely dispense with links and pins, so that the men can keep entirely from between the cars." I call your attention particularly to this remark, as the first official enunciation of the fact, simple as it is, which should never be lost sight of in the discussion of the coupler question from a humanitarian standpoint. At the twelfth annual meeting, in 1878, a committee was appointed "to investigate the causes of accidents to trainmen and report what means can be provided to pro- tect train and yardmen from injury while in the perform- ance of their duties," and the Yardmasters' Association was invited to communicate with the committee. At this meeting Mr. Griffiths, in reporting on self -coup- lers, stated a fact with which we subsequently became very familiar, that there were so many of them " and when they come together they don't operate." At the thirteenth meeting, in 1879, President Garey referred in his address to this subject as deserving special attention, and the committee reported, as the result of one hundred inquiries, that the yardmasters considered the variation in height of drawbars and the deadwoods on each side of them as common causes of injury. At the fifteenth meeting, in 1881, President Garey in his address again called attention to this subject, saying : " The present defective and expensive devices for coupling freight cars have been in use for many years without any marked improvement upon the old link and pin system ; none have sufficient advantages to place them in general use. The necessity for improvement in this direction is of so much importance that our legislators have been called upon to investigate the matter. Wherever it has been shown that railroad companies could better protect the lives of passengers or employees by the use of practical improvements there has been no necessity for legislative ADDRESSES, AMERlCAi^ RAILWAY ASSOCIATION. 43 or any other pressure, other than the plain facts, to place such improvements in use." It appears from this that in 1881, eleven years ago, the matter had begun to attract the attention of legislators, taking the usual form of a proposed investigation, and that President Garey, in noting this new phase of the question, disposed of it in fitting language. Again, in 1882, he said : " If an automatic coupler, or one sufficient- ly so to prevent the necessity of trainmen standing between cars while in the act of coupling, could be put in general use, with a simple and efficient trainbrake under the con- trol of the engineer, and arranged so that it could be ap- plied from any part of the train, they would remove many of the sources of accidents to men while handling cars." At the same meeting the Committee on Causes of Ac- cidents to Train and Yardmen reported that they " had not as yet seen an automatic coupler that they would feel justified in recommending to the Association." At this point let us stop in our researches into what the railroads had been doing towards the adoption of a safety coupler and see what action had been taken officially by railroad commissions and by legislation. On March 19, 1880, eleven years after the matter had first been brought to the attention of the Master Car Builders' Association, the Massachusetts Legislature in- structed the Board of Eailroad Commissioners to investi- gate and report upon the subject of freight drawbars and couplers. Before referring to that report let us re-state briefly what the railroad companies had done. At the third meeting of the Association, in 1869, Mr. Adams had recommended the adoption of a uniform height of coupler as a protection to the lives of railroad em- ployees. At the next meeting a committee was appointed to report upon it, and in 1871 a standard height was adopted. Thus was the first step taken in the evolution of the safety coupler by the railroad companies themselves and at the instance of a railroad official. At the meeting 44 AMEtllCAl^ RAILWAY MAltAGEMENT. in 1873 a committee reported upon the desirability of adopting a standard self-coupler, if one could be found worthy of acceptance. In 1875 the same committee, after examining a great number of models, could find nothing that would meet the demand, and declared that the stand- ard self-coupler should avoid the use of links and pins. In 1877 we find the Lake Shore & Michigan Southern R. R. Co. experimenting with safety couplers on a hundred cars, and in the same year a committee of yardmasters de- claring to the President of the Master Car Builders' As- sociation that they did not care anything about self-coup- lers, that they wanted something to prevent them from being crushed between the cars — and accordingly the at- tention of the Association was directed for some years from self-couplers to deadwoods, apparently in response to suggestions from the yardmen — for, as Mr. Adams said, the Association felt in duty bound to listen to the appeals of these men. In 1878 the Association extended an in- vitation to the Yardmasters' Association to act in concert with their committee, which was to report upon the means for protecting train and yardmen from injury while in the performance of their duties, and at that very meeting the attention of the Association was called to the impor- tance of having the several patterns of self -couplers to be so designed as to couple interchangeably. In 1881 the President of the Association asserted that none of these new inventions had sufficient advantages to place them in general use. This, then, was the advance made in the search for a self -coupler at the time that the Massachusetts Legislature called upon the Board of Railroad Commissioners to in- vestigate the subject. Does this statement of facts bear out the charge made against the railroad companies that " There is no good reason to believe that the railroads will soon provide an adequate remedy of their own volition " ? For eleven years they had been earnestly seeking for an adequate remedy. They had made a stand- ADDRESSES, AMERICAN RAILWAY ASSOCIATION. 45 ard height for couplers, that the safety coupler might be made available. They had laid down the principle that all safety couplers must be without links and pins and couple interchangeably, and had been experimenting with the couplers presented to them for trial without being able to endorse any of them. What more could the rail- road companies have done ? What more had anyone else done during these eleven years up to the time that the Massachusetts Legislature called for a report from their Board of Eailroad Commissioners ? And what did the Commissioners report ? They said that they could not report satisfactorily on models, or even on trial tests — that the only valuable test was " by continued use in the actual course of traffic." They said that they would pre- fer to be guided by the action of railroad corporations; that "when fifty or more of such corporations adopt an automatic coupler, not as an experiment but as a standard, they do so in spite of the increased cost and trouble, and in spite of the natural prejudice against any new device. When, having tried such a device for a long time as an ex- periment, railroad managers ore"" " its unive-:sal use upon their roads, they give the strongest testimony possible in its favor. In justice to railroad managers, it ought to be added that their backwardness in this matter is partly owing to the fact that, in the belief of 'uany, no perfect device for self-coupling has yet been found, and still more that, in their opinion, most of the accidents are owing to the recklessness of brakemen and might be easily avoided. They cite instances where wooden and iron rods have been provided to avoid the necessity of going between freight cars, and where brakemen have declined to use them s^d have looked upon their use as cowardice. There is much truth in these statements " ; and, after saying this, the report recommended a bill requiring the use of the Saf- ford drawbar " or some other automatic coupler." In 1882 the Connecticut Commissioners recommended that the Legislature should require new cars to be equipped with automatic couplers. In 1883 the Massachusetts 46 AMERICAN RAILWAY MANAGEMENT. Commissioners hoped that the Master Car Builders' Con- vention would agree on some standard freight car coupler. In 1884 the Massachusetts Legislature passed an Act re- quiring that freight cars thereafter constructed or pur- chased, or when a coupler was repaired, there should be placed on them " such form or forms of automatic or other safety couplers as the Board of Eailroad Commissioners may prescribe after examination and test of the same, to take full effect on March 1st, 1885." On September 25th, 1884, the Board of Commissioners undertook to solve the problem. Just before that date, the Committee on Auto- matic Freight Car Couplers had reported to the Master Car Builders' Association advising that a committee of experts be appointed to be present at any trial of couplers, and noted as worthy of special mention certain drawbars, as follows : Archer's, Cowell's, United States, Janney's, Ames', Mitchell's, Wilson & Walker's, and the Conway Ball Coupler. In the discussion that followed Mr. Wilder, of the New York, Lake Erie & Western R. E., said : " If the railroads of this country saw fit in their freight car service to apply the Janney Coupler, the same as on the passenger cars, to all their freight cars, or the Miller hook, it would probably be a good thing to do." Mr. Wall, of the Pittsburg, Cincinnati & St. Louis E. E., said: " In order to bring this matter to an issue before this meeting, I would like to submit a motion that it is the sense of this Conven- tion that any automatic coupler presented here should couple in a vertical plane." After a long discussion, the meeting adopted the following resolution : " That the Executive Committee be instructed to issue a circular to all the railroad companies represented in this Association, setting forth our plan of retaining Mr. M. N. Forney to devise, conduct and record tests of automatic freight car couplers, and asking them to signify their willingness to sustain their pro-rata proportion of all expenses incident to such tests." With this action of the Master Car Builders' Association before them^ the Massachusetts Commissioners undertook, ADDRESSES, AMERICAN RAILWAY ASSOCIATION. 47 as I have said, to solve the car coupler problem themselves. They announced that they would " not order the use of any coupler which had not been tested in actual traffic; and this rule was founded on the well-known fact that no expert, however able, can judge of the actual working of a device merely from the inspection of a model, and the man who announces that he can confidently pronounce upon the value of such a railroad invention without actual tests, contradicts all experience and shows himself unfit to be heard upon the question. It is impossible to foretell the safe working of any such device until it has been tried, and it would be a scandal to ^ prescribe ' the use of any coupler whose safety has not been shown by actual test." Notwithstanding the views announced by the Commis- sion, they did " prescribe" five different couplers that would not couple with each other. The railroad com- panies in the State were notified that by March 1st, 1885, all new cars and all cars upon which new couplers were put should be provided with some form of the couplers so prescribed. Yet, in July, 1888, this Commission reported that only 5,000 of those " prescribed " couplers had been so applied. Let us now return to the proceedings of the Master Car Builders' Association. The Executive Committee pro- vided for a public trial of automatic freight car couplers at Buffalo, on Sept. 15th, 1885. Forty-two were subjected to the required tests, and from this number twelve were recommended for further trial in actual service. In July, 1886, and in May, 1887, the Association under- took a series of competitive tests of power brakes on freight trains, and as a result of these tests it was clearly shown that link and pin couplers could not be used on a freight train equipped with power brakes; so it may be asserted that it was not until 1887 that the idea of an automatic link and pin coupler passed definitely out of the minds of practical men. At the twenty-first annual meeting, in 1887, the 48 AMERICAN RAILWAY MANAGEMENT. Executive Committee reported ^^that this Association recommend as a standard form of coupling the Janney type of coupler; that the Association procure one of the present make by a committee appointed for that purpose, and then all other forms of couplers that will automatically couple to and with this coupler under all conditions of service are to be considered as within the Janney type and conforming to the standard of this Association. We be- lieve that the office of this Association and of its members is with the mechanical part of railroading, and that what our railroads want and look to us for is a statement of what type of coupler best fulfils the mechanical condition of a perfect train connection. When we have done this we have performed our duty, and to our superior officers belongs the question of negotiation for the use of the couplers." The report was adopted, and it was determined to de- cide by letter-ballot as to the adoption of the Janney type of coupler as a standard. At the annual meeting, in 1888, the result of the ballot was announced as 474 in favor of and 194 against the adoption of the Janney type. It was further announced that the Executive Committee had undertaken to establish " the contour lines of this type, and the preparation of drawings and templets which would definitely determine and exhibit the standard of the Association." In the performance of this duty, the committee discov- ered that the contour lines of the Janney type were, cov- ered by patents belonging to the Janney Car Coupling Co., and on June 17th, 1888, that company agreed " to waive all claims for patents on contour lines of coupling surfaces of car couplers used on railroads, members of the M. C. B. Association." This waiver was formally executed in April, 1888, as applicable to freight car couplers. It is important to remember that it was not until 1887 that the fact was established that link and pin couplers and power brakes could not be used together on the same ADDRESSES, AMERICAN RAILWAY ASSOCIATION-. 49 freight train, with power brakes ; and that it was not until 1888, just four years ago, that the essential principle of the vertical hook-coupler, which years of experiment had established as the only type practicable for a safety car coupler, was made generally available by the generous action of the Janney Car Coupling Company, With these points secured, the road was made plain to the successful attainment of the result for which the Master Car Builders had striven for twenty years. What followed was mainly the filling-in of the de- tails of the general plan. As the committee said, " The standard of the Association is, therefore, with the publi- cation of these lines, definitely fixed; and it is in the power of any inventor or manufacturer of couplers, now or here- after, to determine for himself whether his coupler will automatically couple to and with this standard, under all conditions of service. Invention can now be directed to improvements in detailed mechanism, in strengthening parts, and devising means for the protection of the coup- lers against the shocks and strains of service.'' This is the history of the evolution of the type of safety coupler which, at the meeting in 1888, was first called the Master Car Builders' Type. Well is that association of earnest railroad officials entitled to connect its name with this ex- cellent work in the cause of humanity, and well may I add that this is their answer to the charge made at this late date that " There is no good reason to believe that the railroads will soon provide an adequate remedy of their own volition." But, as I have said, there were still details to be filled in after the general plan was adopted; details relating to certain dimensions of the coupler and to its proper loca- tion with respect to the end-sill — minor matters, it is true, but which were to be definitely decided, one way or an- other, if every coupler of the Master Car Builders' type was to couple with every other coupler of the same type, never mind who invented it or who made it; and to in- sure their final recognition by letter-ballot, the matter was 50 AMERICAN RAILWAY MANAGEMENT. carried over to 1889, when the coupler recommended by the Executive Committee was formally adopted, in all re- spects, as the standard coupler of the Association. But, as the Executive Committee stated at the meeting in 1887, " the office of the Association and its members is with the mechanical part of railroading, and what our railroads want and look to us for is a statement of what type of coupler best fulfills the mechanical condition of a perfect train connection. When we have done this we have per- formed our duty, and to our superior officers belongs the question of negotiation for the use of these couplers/^ Some organized action was therefore requisite on the part of the managing officers of the railroad companies to make effective the action of the Master Car Builders at their meeting in 1889. This was sought to be accom- plished through this Association. At our semi-annual meeting in April, 1890, I called this matter to your atten- tion, using the following language : " There are improve- ments in m.ethods and appliances now passing from the experimental stage, in which they are properly the sub- jects for consideration in technical associations, to the stage in which the responsible management of our railroad systems must decide whether they will recognize them as sufficiently valuable for general adoption." At the same meeting the Standing Committee on Safety Appliances, in its report on this and kindred subjects, said : " Al- though the Committee is not now ready to recommend action by this Convention, it must not be supposed that none will at any time be suggested. It hopes, on the con- trary, to be able to present more definite views at your fall meeting." At that meeting the Committee recom- mended to the Convention the adoption of the Master Car Builders' Type of Automatic Freight Car Coupler as the standard of its members. Mr. Voorhees, Gen. Supt., New York Central & Hudson Eiver E. R., moved the ac- ceptance of the report and called for a vote by companies. Out of fifty companies voting, there were but two that ADDRESSES, AMERICAN" RAILWAY ASSOCIATION". 51 dissented; and it may be said that in October, 1890, the Master Car Builders' Freight Car Coupler was recognized by the railroad companies of this country as the standard coupler, so far as it was possible for this to be done by their organized action. Let us now see what had resulted from the action of the Massachusetts Legislature in 1884, which provided that by March 1, 1885, the railroad companies in the State should have equipped their freight cars with such forms of safety couplers as the Eailroad Commissioners might prescribe. In September, 1884, the Board prescribed eight different kinds of couplers. In January, 1888, the Board reported that only 2,500 cars had been so equipped. In January, 1891, the Board reported that it had " in contemplation action looking to a revocation of some of the approvals heretofore issued," and that it had generally approved of all couplers of the Master Car Builders' Type. This was virtually a confession of the failure of the com- pulsory legislation of 1884 to accomplish anything in nearly seven years, and an acknowledgment that all which had been accomplished up to January, 1891, was the work of the master car builders of the railroad companies. Still Massachusetts did not lose faith in compulsory legislation on safety appliances, for in 1890 its legislature passed a resolution urging upon Congress to instruct the Inter- State Commerce . Commission to recommend the railroad companies to take some action in this matter and to sug- gest such legislation as might seem necessary or expedient. The Inter-State Commerce Commission called a conven- tion of the State Eailroad Commissioners, which in May, 1890, resolved that the State Legislatures should require freight cars to be equipped with " an automatic coupler of the Master Car Builders' type," and recommended Con- gress to take similar action. In the same month the Eailroad Commissioners of Michigan withdrew the approval given in 1886 to seven different kinds of safety couplers, and authorized the use 52 AMERICAN" RAILWAY MA:N^AGEMENT. of " Janney, Dowling, Gould, Hinson and other couplers of the Master Car Builders' type/' The action of the State Legislatures and of the railroad commissions induced the President to refer to this subject in his message to Congress of December, 1890, in the fol- lowing language : " It may still be possible for this Con- gress to inaugurate, by suitable legislation, an amendment looking to uniformity and increased safety in the use of couplers and brakes upon freight trains engaged in inter- state commerce. The chief difficulty in the way is to se- cure agreement as to the best appliances, — simplicity, ef- fectiyeness and cost being considered. This difficulty will only yield to legislation which should be based upon full inquiry and impartial tests. The purpose should be to secure the co-operation of all well-disposed managers and owners; but the fearful fact that every year's delay involves the sacrifice of 2,000 lives and the maiming of 20,000 young men should plead both with Congress and the managers against any needless delay." The report of the Inter-State Commerce Commission for the year ending June, 1890, gives 369 killed and 7,482 in- jured in coupling cars ; but, accepting the President's figures as correct, it is disheartening to feel that our de- liberate, organized action of October, 1890, should not have been recognized, although it was directly in line with his recommendation of December of the "same year. The President stated the difficulty in the way of uniformity to be that of securing agreement as to the best devices. He says that this difficulty will only yield to legislation which should be based upon full inquiry and impartial tests, and pleads for the co-operation of all well-disposed managers and owners — co-operation which had been publicly, of- ficially and efficiently given two months before the date of his message to Congress. In March, 1891, there was another meeting of the State Eailroad Commissioners held under the auspices of the Inter-State Commerce Commission, at which a committee ADDRESSES, AMERICAN RAILWAY ASSOClATlOlT. 53 was appointed to present a bill to Congress for hastening and insuring the equipment of freight cars with uniform automatic couplers, and, before presenting a bill, " to give a hearing to accredited representatives of such organizations of railroad officials or employees as may desire to be heard." In response to the circular notice as above, dated May 22d, your Executive Committee, at the time representing over 122,000 miles of railroad, signified its desire to act in har- mony with the National Convention of Eailroad Commis- sioners, and suggested a conference in time to properly present the whole subject at our October meting. Noth- ing came of this proposition, and the Committee of Eail- road Commissioners gave the promised hearing in this city on Nov. 10th, 1891, at which your Executive Committee and Committee on Safety Appliances were present, as also a committee from the Master Car Builders' Association, to inform the Committee as to the action already taken by our associations and to express an opinion adverse to the necessity for compulsory legislation. We heard nothing as to the results of this hearing, except that the Committee had been unable to agree upon a bill, a report which we found to be true when we were invited to another hearing by the same Committee held in Washington on Feb. 14th. It was made evident at that meeting that the Committee could not agree upon a bill to be presented to Congress, and at the hearings which followed during the next two days before the Inter-State Commerce Committees of both the Senate and House of Eepresentatives this Committee failed to appear, though some of its members presented their individual opinions. This is a brief but correct outline of the history of the action on safety appliances by railroad organizations, by State Legislatures and by State Commissioners up to the present time, and I think that you will agree with me in the opinion that the railroad companies have no reason \o be ashamed of their record. We are now facing the possibility of immediate legislation of a compulsory char- 54 AMERICAN RAILWAY MAKAGEMENT. acter, insisted upon as an urgent matter of national im- portance, and also the probability that, in its eagerness to respond to the appeal for protection to railroad employees. Congress will act without sufficient knowledge as to what has been done and without a proper appreciation of the unfavorable effect which injudicious legislation will have upon the very cause in which we are interested equally with the employees who are to be protected. This will undoubtedly be the case if the principles should prevail which are embodied in some of the numerous bills now under consideration by congressional committees. These bills generally provide for compulsory legislation of a penal character, intended to insure the general adoption by railroad companies, within a given time, of some form of safety coupler for freight cars. The dif- ficulty in the way of prescribing the form of safety coupler with that exactness necessary to make a penal statute ef- fective is said to have prevented the Committee of Eail- road Commissioners from agreeing upon a bill, and the same difficulty has evidently been experienced in framing the bills now before the congressional committees. This difficulty it has been sought to avoid in various ways ; in some of them by a vote of " members of established and recognized organizations of railroad employees " for the most popular safety coupler, just as they might vote for the most popular conductor or superintendent. In other of the bills resort is had to commissioners, who, at the public expense, are to either select a coupler already patented or to devise one themselves. The more or less re- mote possibilities with such a commission are enough to make such a position more desirable than any other that Congress or the President could bestow. In one or two of these bills there is a recognition of the existence of the Master Car Builders' type and the evidence of an earnest desire to bring about in the interest of humanity the early and general adoption of that type of coupler. For the spirit evinced in such bills we should all have profound ADDRESSES, iMfiRtCAiT RAILWAY ASSOCIATION. 55 respect, even though we should be skeptical as to the re- sults. The choice of a standard coupler by popular vote of railroad employees recommends itself, as a matter of course, to those, even, who look for political preferment through the support of labor organizations, but to others it really seems as the obvious way of arriving at a correct conclusion. To those who sincerely hold this opinion we may say that the brakemen and switchmen are no more called on to be acquainted with the proper dimensions and internal locking devices of a vertical hook coupler than with the dimensions and internal mechanism of the watches which they carry. They have only to manipulate the release rod of the one as they have to wind the key or winding stem of the other. That is all they need to know about either, and it is about all that many of them ever will know about a vertical hook coupler. Is it to be held that a matter which has demanded the time and thought of mechanical experts for twenty years in the evolution of the Master Car Builders' type is to be set aside by the pop- ular vote of men whose attention has been concentrated upon the admirably dexterous manipulation of a link and pin ? No wonder that many of them express a preference for the device which they have learned to handle with a facility which makes the uninitiated tremble for their safety when they see such a performance take place amid trains of mov- ing cars. The fact is, that the only justification for legis- lative interference in this matter is that such interference is essential to the protection of railroad employees, and that such protection can be obtained in no other way. If the man engaged to couple cars does not go between them, he is sufficiently protected from injury, and if the railroad company provides a device by which cars can be coupled and uncoupled without the employee going between the cars, there can be no just occasion for legislative inter- ference. This is exactly what has been done by the Mas- ter Car Builders and by the American Railway Association. 56 AMERlCAlT RAILWAY MANAGEMENT. That device is a rod which projects from the side of the car and which has only to be turned partly around to un- couple the car to which it is attached. So long as that rod is there the brakeman or yardman can uncouple the cars without going between them, and so long as that rod fulfils this purpose it is no affair of the yardman or brake- man as to what is at the other end of the rod. But it is of a great deal of importance to the railroad companies, owning together over a million cars. For the change of couplers on all these cars represents to them over $25,000,000, and it is their responsible managers, and not the switchmen, who must see to it that this immense sum is not misapplied. This is what has already been done by the adoption of the Master Car Builders' type. Adopted generally in October, 1890, we have reason to believe that it has already been applied to over 200,000 cars, or about one-fifth of all the cars in service, and we have reliable information that in all new construction, say on 25,000 cars now being built or under contract, this coupler will be generally applied. What more can be hoped for from a popular vote of employees ? The demand for a re- moval of all these couplers and the return to the link and pin type ? Such a demand has been voiced before the Committee of Railroad Commissioners, as well as before the congressional committees, and the demand has been eloquently enforced by gestures made with hands maimed in the use of just such link and pin couplers. This anomaly in human nature is bewildering to those whose hearts are filled with sympathy for these unfortunates, but it is understood by those who are familiar with rail- road service. It is due, primarily, to a reluctance to change from old habits and devices with which we are familiar to those which are novel and strange ; next, to a fear that, because of the safety that attaches to the operation of the new device, new men will more readily undertake to fill the positions of switchmen. But there is yet another motive, which has a more rational foundation. ADDRESSfiS, AMERICAN RAILWAY ASsOClATlOi;. t>1 and that is the greater difficulty that attaches to coupling a Master Car Builders' coupler to a link and pin coupler. While this great difficulty should be recognized, it does not follow that there is also a greater liability to injury. In the absence of reliable statistics on this point, it may be assumed that, because of the greater difficulty, greater care is habitually exercised in making such couplings and Ti corresponding diminution in the number of casualties. Be this as it may, such casualties can only occur during the period of transition from the link and pin to the Master Car Builders' coupler, and it has been frequently proven by figures that they must rapidly diminish in fre- quency after half the number of cars in service have been equipped with couplers of the latter type. The outcome of a popular vote of employees as to a choice of couplers is foreshadowed in an experiment of this kind mentioned in the Massachusetts Commissioners' Eeport of January, 1891. It seems that, after the publication of the President's message, to which I have already referred, the New Eng- land Railroad Club undertook to obtain from employees engaged in handling cars an expression of opinion " as to the form of coupler which best combines uniformity, auto- matic action and safety." Out of 1,948 votes, 1,239 were for the Safford Automatic Link and Pin Coupler, 585 were for couplers of the Master Car Builders' type, 63 were for the old link and pin, and the remaining 61 scat- tering. The Safford Coupler is a great improvement on the old link and pin, but its use with power brakes would be just as impracticable, yet this does not seem to have weighed with the majority of the voters. One objection to the Master Car Builders' type -yas the difficulty and danger in coupling to it with a link and pin, an objection already shown to be transitory; another was that it could not be made strong enough to withstand the blows to which it must be submitted in terminal traffic, an objection which experience has shown to be without foundation ; another. 68 AMERICAN HAlLWAY MAKAGEMEKT. that the expense for repairs would be so great. I make this reference to show how an important question like this would be handled in a popular election contest, and to contrast it with the result of the careful thought expended upon the same question by the Master Car Builders' Asso- ciation. So much for the idea of determining by a vote of em- ployees how the railroad companies shall spend $25,000,- 000 on couplers — an idea which pervades much of the proposed compulsory legislation. Another idea is that of determining the same matter by a commission composed, for instance, of a master car builder, a yard switchman, a railroad operating official and several outsiders. This commission is to investigate the merits of all couplers presented to them, and the coupler decided upon by a majority of this commission the Presi- dent of the United States shall proclaim to be the standard safety coupler. Would such a commission be any more competent to decide the question than the commission of technical experts termed the Master Car Builders' Asso- ciation, or that of managing railway officials termed the American Eailway Association ? The superior compe- tency of the latter can only be disputed by impeaching the good faith of their members. And what is there for the proposed commission to de- termine ? It must either decide in favor of the Master Car Builders' type or against it. If the former, such a deci- sion is unnecessary, for railroad companies representing 123,000 out of the 175,000 miles of railroads in this country have already made a similar decision. If such a commission were to decide against the Master Car Builders' type, they must decide in favor of something else. What would that something else be ? We know of no other type of coupler in actual use than the link and pin, a type which, as practical tests have shown, cannot be used with power brakes in the same train. Let us leave the advocates of a congressional commission in this di- ADDRESSES, AMERICAiq" RAILWAY ASSOCIATIOJ^. 59 lemma and consider another aspect of compulsory legisla- tion. It has been said to us : " If you oppose the selection of a safety coupler by a plebiscite of railroad employees or by a congressional commission, what sort of compulsory legislation do you favor ? " Our answer may be made in the language of the Massachusetts Eailroad Commission : '' Those who urged that there should be no legislation at all upon the subject, claimed that the railroad companies were proceeding in the development and adoption of au- tomatic couplers as rapidly as possible, and that any legis- lation would be likely to saddle upon the country some de- vice, unsatisfactory and imperfect ; would impose upon the railroad companies great expense with no correspond- ing benefit to the employees, and would, in fact, be a bar to progress towards perfection. This argument is of weight and should not be disregarded, unless the circumstances are of a nature so exceptional as to justify a departure from a principle of legislation which for many years has been generally adhered to in this State with satisfactory results." By this statement of the Massachusetts Commission we should be willing to abide; that there is no reason for compulsory legislation unless the circumstances are of a nature so exceptional as to justify it. The only justifica- tion for it would be that the railroad companies will not voluntarily protect their employees from injury while coupling cars by the adoption of some safety coupler which has been proven in actual service to serve this pur- pose. This the companies, members of our Association, have already done without compulsory legislation. But some earnest and sincere friends of railroad employees who admit this say that compulsory legislation is needed to enforce the adoption of the Master Car Builders' Coup- ler upon that minority of railroad companies which stand out against it. To this we reply that, judging of the fu- ture by the past, we do not agree in this opinion. We 60 AMERICAK RAILWAY MAiTAGEMENT. can refer them to the change of gauge of track on the Southern roads, a change of nearly 25,000 miles, substan- tially in a single day, brought about by organized action of the railroad companies themselves and without com- pulsory legislation. We can also point to the general adoption of the Master Car Builders' type of coupler on passenger trains — brought about also without compulsory legislation. We say to them that it was only a year or more ago that the freight coupler problem actually passed out of the experimental stage ; that already it has been placed on about one-fifth of the cars in service, and per- haps on four-fifths of the cars now under construction. We may add that, when the time has come that those railroad companies which have urged this reform are themselves in a position to insist upon it, they will decline to receive any freight car not equipped with the Master Car Builders' type of coupler, as they do to-day with passenger cars. All that is now required to side-track a passenger car not so equipped is the car inspector's chalk mark, and that is all the compulsory legislation that we think will be neces- sary to side-track a freight car when the time has arrived to insist upon it. If we are asked how long this desirable result is to be delayed, we must each give his individual opinion, for, after all, it must be a matter of opinion. Answering for myself, I will say, substantially, in less time than any ad- vocate of compulsory legislation will insist upon. The good work is going on at an accelerating speed. While a year ago the Master Car Builders' Coupler was rarely seen on a train, now it is the exception to find a train without it. The principal manufacturers are enlarging their works to meet the growing demand. On our principal trunk lines it is the rule in repairs to use it in place of the link and pin coupler. With many companies the delay in the sreneral adoption of the standard device comes from inability to make the necessary expenditure at once. The economic qustion cannot be lost sight of. ADDRESSES, AMERICAi?- RAILWAY ASSOCIATION". 61 In these days of a small margin between the rate per mile and the cost per mile, large expenditures cannot be made from income account, and if they must be provided for from capital account many companies must wait until there is a market for their stocks and bonds. How could a compulsory statute with a penal provision be made to ap- ply to a company under such circumstances ? I have trespassed upon your attention beyond the usual limit of time, but I have been urged to do so by my desire to use this opportunity to defend the railroad companies against the charge of indifference to the welfare of their employees. I have sought to show that whatever has been accomplished in this matter of safety couplers has been the work of the railroad companies ; that it has been accom- plished as rapidly as the state of the art would permit, and that their organized action through the American Railway Association has rendered unnecessary compulsory legisla- tion on safety couplers. 62 AMERICAN RAILWAY MANAGEMENT, STANDARD CODE OF TRAIN RULES: BLOCK SYSTEM. (October 12, 1892, at 24 Park Place, New York.) I propose to-day to speak of matters of present interest to the members of the Association, relating to the Stand- ard Code of Train Rules. Although its adoption called in many instances for a de- cided departure from established customs, the manifest advantage of uniform rules and the merits of the code it- self have prevailed over all opposition. To-day it is re- ferred to in our courts of law as embodying the best mod- ern practice, and the railroad management that ignores it handicaps itself in any litigation involving the reason- ableness of train rules, or a failure on the part of em- ployees to observe them. These considerations induced the Association to establish the Standing Committee on Train Rules, to pass upon questions as to the proper con- struction and application of the standard code and upon suggestions as to its improvement. Some of these suggestions have come in the form of a report from a committee of the Train Dispatchers' Associa- tion of America, which, in October last, presented a me- morial submitting certain amendments as the result of practical experience in its use. This action of the Train Dispatchers' Association is worthy of notice, not only for the intrinsic value of the suggestions, but even more so because of the interest taken by its members in the proper conduct of the important branch of railroad service entrusted to them. In considering these proposed amendments, the Con- mittee on Train Rules has had to keep in view certain principles which can not be lost sight of in the preparation ADDKESSES, AMEKICAK RAILWAY ASSOCIATION. 63 or modification of a standard code. Such a code should be applicable to the train service of all roads operated under what may be called the American method, and should con- tain all rules necessary to the movement of trains with safety. These rules should be expressed as briefly as is compatible with a clear understanding of them, and the same word should invariably mean the same thing. In order that the code may meet the requirements of our largest railroad systems, and at the same time be used on single track roads with light traffic, those rules should be first laid down which are of primary importance and applicable to train service generally. To them should be added rules for operating double-track roads and such others as may be required for operating roads with excep- tionally heavy traffic. The primary rules, those that em- body principles which under no conditions can be disre- garded with safety, constitute the groundwork of the code to be accepted and followed by all ; while the secondary rules, those which are required for the proper conduct of heavy traffic, are to be adopted by each of us as our increasing business may require them. This is the only basis on which a code of train rules for general use could be founded. To the matter of expression much thought should be given. Every word fairly capable of more than one mean- ing should be defined in the sense in which it is intended to be used. While, in the preparation of the Standard Code the Committee on Train Eules undertook no more than to embody the best recognized practice, the step which it took to ensure accuracy in watches used by trainmen did away with a frequent cause of collisions in the allowance of time for variation of watches. The establishment of the double order for the movement of trains by telegraph and of standard forms for the transmission of such orders are also parts of the Standard Code for which we are in- debted to this Committee. 64 AMEKICA]^" RAILWAY MAKAGEMEKT. For that code to be of general and permanent value it must not be subjected to frequent alterations. There is a large army of railroad employees and officials distributed over 170,000 miles of railway who should each of them be thoroughly versed in this code. They should be so fa- miliar with its very language as to be capable of reciting it from memory. The rules will then readily recur to their minds in an emergency. It is for this reason that once the language of the code has been so fixed as to be in- capable of misinterpretation it should not be changed except to conform to accepted improvements in train ser- vice, and then only after careful consideration. Now that it has for some years been kept virtually in- tact, it has been found advisable to publish an edition under the auspices of the Association which can be ap- pealed to as authentic in litigation and for other purposes. If we recognize the advantage of having an uniform set of rules throughout the country, and if we admit that this Standard Code conforms in general to the best prac- tice, those who have so far refrained from adopting it may well be asked to waive their objection to this or that rule and their preference for some other not recognized in the code, and to fall in line with the companies operating about one hundred thousand miles of road that have now substantially accepted it. In what I have said I have sought to establish the necessity for an uniform code of train rules, a necessity which has been provided for in the code adopted by this Association. This code should not be modified in any respect except to conform it to accepted improvements in train service. In this respect the Standard Code is deficient. It does not recognize improved methods of train service which have been to some extent in use for years on our best roads, and which are now deemed essential to the success- ful conduct of a heavy traffic. I refer to the means afforded for protection of trains against each other outside of the ADD i; ESSES, AMERICAN RAILWAY ASSOCIATION". 65 efforts of the trainmen themselves. From one end of the code to the other there is nothing to show that it is cus- tomary in this country to provide any other means for such protection. The " Train Eules " so called are, by themselves, ap- plicable only to the operation of a single track road with a light traffic. For any considerable business, even on a single track road, they would be supplemented by " The Eules Governing the Movement of Trains by Telegraphic Orders." But when we go on a step further and provide for an increase of traffic by the use of " running sidings " as distinguished from ^^ passing sidings," we get no aid from the code as to the proper rules to be observed in using them. Neither are double track roads recognized except in approaching the end of double track, as in Eule No. 94, or in passing from double to single track, as in Eule No. 95. I have not brought these matters up to disparage the code. What has been accomplished in its preparation is of value to that large part of the mileage of this country which is single track, but the time has now come when the double track roads begin to call for recognition by the Train Eule Committee and to ask for a standard set of rules for the protection of their trains by methods which do not depend solely upon the intelligence or vigilance of train employees. This opens up a new and extensive field of action for the Committee, partly well explored and understood, partly a debatable ground. It is not surprising that the members of the Train Eule Committee, mindful of their past experience in formulating and defending the present code, should pause and reflect before entering upon the far more difficult task before them. It is no holiday work for the amusement of their leisure hours. It draws freely upon the time and brains of men who are already burdened with responsibilities of no ordinary character, and it is 66 AMERICAN RAILWAY MANAGEMENT. due to fhem that we should apprehend what it is that we have now asked them to do. As I understand it, we have asked them to submit a set of rules for the protection of trains by methods which do not depend solely upon the intelligence and vigilance of train employees. On double track roads these methods are intended to maintain safe intervals between following trains by the use of signals which serve to convey certain information to the engineers of those trains. The idea of maintaining intervals of time between trains has been realized in various ways, as by track sentries or by the display of signals at curves or at other specially hazardous points or by a record at stations, visible from passing trains, showing the time that the last train had passed in the same direction. The method of time in- tervals between following trains affords efficient protection so long as the trains maintain an uniform schedule speed, can be readily stopped within the recognized time interval and are not liable to unexpected delays between signal stations. These conditions prevail on roads doing prin- cipally a passenger business with light and frequent trains, and such roads can be and are now successfully operated under this method. A heavy freight traffic cannot be satisfactorily con- ducted under a time interval between trains. The liability to unexpected delays between signal stations is great, and more time is required to stop the train than in passenger service, as also for flagmen to get back to the distance in which the following train can be stopped, due allowance being made for grades and curves. A proper regard for these different conditions compels an increase in the time interval which seriously embarrasses the service, especially as the intervening passenger trains must respect the same interval, and the resulting tendency is to restrict this in- terval within too narrow limits. A comparison of rear collision reports will show that the most of them ^re with freight trains. Experience thQiQ-- ADDRESSES, AMERICAN RAILWAY ASSOCIATION. 67 fore proves that a time interval does not afford sufficient protection on roads that have a heavy freight traffic unless that interval be so extended as to seriously interfere with business — yet this was the only method available until it became possible to establish an interval of space by means of the electric telegraph. This method of conveying infor- mation had been for some time used for other purposes before it became the accepted medium for orders to trains, but even now that the Standard Code includes " The rules governing the movement of trains by telegraphic orders," those rules are mainly a protection against butting col- lisions only. For protection against rear collisions it is not rules for moving trains that are required but rules for stopping them. We want rules for stopping them by the maintenance of a time interval for those who prefer that method and rules for stopping them by a space interval for those whose traffic has outgrown that method. The maintenance of space intervals is no novelty, for it has been for years in use upon many of our roads. The appreciation of its value has become so prevalent that its more general adoption is demanded not only by the rail- road Journals but also in the daily newspapers. Why, then, does not our Train Eule Committee add to the Standard Code " Kules for the movement of trains under the block system " ? The railroad corporations elected under our rules as the members of this Committee select from among their own officials those whom they deem best fitted to represent them in this connection ; the Committee has at its com- mand the resources of our extensive membership from which to obtain any information required for the purposes for which it was constituted ; this special subject has been before that Committee for over a year, and yet not even a preliminary report has been made. I do not propose to arraign these gentlemen before you to-day, but, being ex-officio a member of their Committee, to offer without their knowledge an explanatiou in their behalf, They 68 AMERICAN RAILWAY MANAGEMENT. recognize the necessity for greater uniformity in the oper- ation of trains under the block system ; they acknowledge that the Standard Code should include a set of rules ap- plicable to this system ; they respect the call made upon them by the Association to furnish such a set of rules and would gladly respond to the call and yet they fail to do so. Being rather a looker-on than an active participant in their deliberations, I have not only observed their situa- tion, I have reflected upon it. My conclusion is. that their inaction, if I may so term it, is due neither to their inabil- ity nor to their indisposition to codify the ordinary practice in the use of the block system, but because they are in doubt as to the sufficiency of that ordinary practice to provide for the normal increase of train service on the roads where these rules are more anxiously desired, and because of the impending changes in the conditions under which the service is to be performed. To make clear to you what I have in mind I will outline briefly what these conditions have been, keeping in view the object to be obtained, the maintenance of a distance interval between following trains. The change of this interval from one of time to one of space was first secured through the aid of the electric telegraph, and the information thus ob- tained was transmitted by signal from the receiving oper- ator to the engineer of the approaching train. This in- formation was of a simple character, either that there was or was not a train in the space intervening between him- self and the receiving operator. This was the fundamental principle of the "block" system, that the engineer of a train approaching a signal station was to be informed from that station whether there was or was not a train in the block ahead of him. The next step was to instruct that en- gineer as to the use he was to make of that information. There was no doubt as to the rule which he was to follow when the block was clear — he was to proceed. But what was he to do when he was informed that the preceding tr^in w^s still in the block ? Was he to go ahead or not ? ADDRESSES, AMERlCAK RAILWAY ASSOCIATION. 69 The safest rule was to stop until the block was cleared. But just as increasing traffic became embarrassed by the time interval, so the same experience followed the institu- tion of the space interval, and this embarrassment it was sought to remove by such a modification of the rule to stop until the block was cleared as permitted the following train to enter the block with the knowledge that it was not clear. This is the broad distinction between the ab- solute and the permissive block system. The former is not only safe but simple ; the latter requires that the rear of the first train in a block must be protected by flagmen with due regard to the relative speed of the two trains, to .the curves and gradients of the track and to the dis- tance in which the following train could be stopped. I think, therefore, that it is fair to say that the permissive block system is an improvement on the time interval only in this respect : that the engineer of the approaching train can be informed whether there is or is not a train in the block ahead. I say that he can be informed, but it is possible that he may not be informed and, as a matter of fact, sometimes he is misinformed. This brings us to consider the man- ner in which this information is conveyed from the re- ceiving operator to the approaching engineer. The latter must receive it through the eye or ear, by visible or by audible signals. If through the eye, the impression re- ceived 'must be either as to form, color or position. This opens a field of discussion as to how the visible signals shall be made. If by form, whether a ball, a banner or a semaphore arm ; if by color, what colors shall be em- ployed and what they shall respectively signify ; if by position of several objects, what shall be their relative po- sitions and what shall they signify. At this point it may be well to observe that whatever differences of opinion there may be among experts as to the adoption of the absolute or the permissive block sys- tem, they ought to make an effort to reconcile their differ- 70 AMERICAK RAILWAY MAKAGEMENT. ences so far as to unite in recommending a uniform system of signals for conveying information to the engineer of an approaching train. The causes for their different opinions are all well founded, but they are not irreconcilable. It is true that they have become more involved of late through the introduction of interlocking switch plants, as I will mention later in my remarks ; but what I wish to impress upon you is that, in the operation of the block system, a code of rules for the guidance of train men is one thing and a code of signals for conveying information to them is another, and that neither should be confounded with the appliances for operating these signals. For the better understanding of my views as to the duty of the Train Eule Committee in this matter I will repeat that there are three separate subjects connected with the oper- ation of trains under the block system : First, The rules for the guidance of train men. Second, The signals which are to convey information to them. Third, The appliances for operating the signals. The mention of the third subject brings up a matter which, by the rules of our Association, has been specially committed to the standing Committee on Safety Appli- ances, to consider and report upon all questions affecting the essential requisites of devices for interlocking switches and for block systems ; the other two subjects being properly within the purview of the standing Committee on Train Eules. As the three subjects are somewhat in- terdependent, your Executive Committee has requested that the two committees shall jointly consider them. The necessity for this joint action is due to the bearing which the character of the appliances may have upon the character of the rules and signals, and here comes in an- other element to intensify the difficulties which our Com- mittees have had to encounter. The appliances for operating the signals are controlled directly by the operator at the entrance of the block, who ADDRESSES, AMERICAN RAILWAY ASSOCIATIOK. 71 manipulates them in accordance with the information which he has received from the operator at the outlet of the block. The information that the block is clear or not clear is conveyed to the engineer of the approaching train through human agency, and the possibility of error is doubled, or rather tripled, by the intervention of two per- sons besides the engineer. He may either misinterpret or disregard the visible signals ; the receiving operator may misinterpret or disregard the information which is to con- trol the display of the signals ; the sending operator may either transmit that information incorrectly or fail to send it at all. Leaving out the rules for the guidance of train men and the code of signals, the block system, so far as it is in general use, is deficient in providing the means for the protection of following trains, because it does not eliminate the element of human fallibility. This defect railroad managers, signal manufacturers and inventors are trying to remedy, and it is because our Train Rule Committee is conscious of these facts that it has hesitated to endorse the block system as now used. Their hesitation has been increased by the contest between the several systems which have been devised to supplant the present system, and which are now in experimental use to an extent which promises to simplify th^ solution of the problem by an exclusion of that which! has failed in trial. The effort to eliminate human agency begins with the normal state of the signal, whether the action, of the operator at that point shall be required to inform the approaching engineer that the block is clear or that it is not. If he can only give this in- formation under the control of the operator at the outlet of the block there is one mind the less to make a mistake. It is for the Train Rule Committee to so determine the normal state of the signal as to reduce the probability of its being misinterpreted or disregarded by the approach- ing engineer, and for the Safety Appliance Committee to determine the essential requisites of the appliances which 72 AMERICAN RAILWAY MANAGEMENT. shall prevent the receiving operator from displaying a signal improperly. Going to the other end of the block, we have to guard against the transmission of incorrect information to the receiving operator or the failure to send it at all. The latter contingency may be avoided if the normal state of the entrance signal can be changed only by the act of the sending operator, but the former, the protection against the transmission of incorrect information, is more difficult to secure. This man has to determine that the block is or is not clear, and then control accordingly the display of the signal at the other end of the block. He determines that the block is clear, first, from a notification that a train has entered, next by actual observation of its passage. It is not sufficient for him to know that an en- gine has passed out of the block, but also that every car which was attached to that engine when it entered the block passed out with it. That some such protection should be required by the rules is within the province of the Train Eule Committee, as it is the province of the Safety Appliance Committee to determine the essential requisites of the appliances by which that protection shall be secured. Admitting that the operator at the outlet of the block is correctly informed that the block is clear, we have next to ensure that this information is correctly transmitted to the entrance and the signal properly displayed. The respective duties of our two committees in this matter are also obvious. If the rules, signals and appliances for the use of the block system can be successfully wrought out to this stage then there is yet another step to be taken, which shall eliminate the intervention of the sending operator. This has been experimentally accomplished by several devices actuated by the train as it passes the entrance and outlet of the block, simultaneously operating a display of the signals required to block the interval which it is entering ADDRESSES, AMERICAN RAILWAY ASSOCIATION. V3 and to clear that which it is leaving ; indeed, this effect can now be extended to the next block behind it, so that the engineer of a following train is thereby informed, not only as to the condition of the block ahead of him, but also as to the condition of the block ahead of that. This extended protection is required since the speed and momentum of trains have exceeded our ability to stop them within the distance in which, under all circum- stances, the signal at the entrance of the block can be made visible to the approaching engineer. To meet this difficulty, and to avoid the consequently necessary retar- dation of the train, the entrance or home signal has been supplemented by the distant signal, and, in the system above described, the entrance signal of one block is the distant signal of the block next ahead. The circumstances under which distant signals should be required will affect the rules for operating a block system as well as the essen- tial requisites for the proper appliances. Here we seem to have reached the ultimate limit of the resources at present available for the protection of trains against each other, outside of the efforts of the train men themselves. There is another step which may yet be taken, that of protecting the trains against the misconduct or neglect of these/very train men, by the introduction of appliances connected with the block signals which shall strike the engine gong or blow the whistle, or apply the brakes, or even close the throttle-valve of the approaching train, but these appliances have not reached such a stage of efficiency as to call for further notice in this connection. Proceeding on a line parallel with the improvement of the block system, there has been a demand for greater security against derailment or collisions from misplaced drawbridges or switches or at railroad crossings. This de- mand has led to the introduction of appliances for con- trolling one or more such points from one location. For convenience of operation, this control has been gradually brought into accord with the control of the block system 74 AM ERICA K lUTLWAY MANAGEMENT. signals and, as a measure of safety, that accord has been made interdependent by the introduction of interlocking plants that have developed into marvelously ingenious pieces of mechanism. In this development there have been involved the same questions as to rules, as to signals and as to transmitting information to train men and to oper- ators that have followed upon the development of the block system and, as a consequence, there has come about a complication which our Train Eule Committee can not disregard. It is the confusion that may arise as to whether a signal is intended to show that a switch is or is not right for an approaching train or whether it is intended to show that the block ahead is clear. On a few of our trunk lines a still further complication has arisen which will extend with increasing traffic. This is occasioned by the con- struction of additional running tracks so that the train rules and signals are required to provide for running trains on more than two tracks. While this is not a pressing want just now, it may well be provided for in a code of standard rules for a block system, in order to ensure con- sistency with that code in the further development of such service. The intervention of mechanical appliances in the movement and control of signals, switches, drawbridges and crossings and the interlocking of such appliances have induced the substitution of other motive power for the muscular power of man, and to-day we employ steam, com- pressed air and electricity for this purpose, either singly or in combination. To what extent this substitution should affect the standard block system rules or the appliances required by those rules are matters that even our Standing Committees may not pass judgment upon without the aid of those who are expert in the application of such forces to our purposes. I will not refer at greater length to the task now before our joint committee on Train Rules and Safety Appliances and hope that what I have said in explanation of the diffi- ADDKESSES, AMtltlCAN RAILWAY ASSOCIATION. 75 culties which they have encountered will be sufficient to justify their tardiness and in some measure to indicate the course which they must pursue. In your criticisms upon their reports and in your an- ticipations of the result of their work you should be re- stricted by the same considerations which control them, viz. : that our Association undertakes no more than to es- tablish the best modern practice as recognized by the ma- jority of our members and only in those matters in which a uniform practice is essential to the best results, or, to use the language of our Eules of Order, " the development and solution of problems connected with railroad manage- ment in the mutual interests of the railroad companies of America." One of these problems is the development of a Standard Code of Train Eules, and this problem can only be said to have been definitely solved when trains can be run fre- quently at high speed from start to finish without time card or traim order, secure against derailment or collision and controlled only by the block signal. % AMElltCAN RAILWAY MANAGEMEKT. VALUE OF CO-OPERATION IN THE CONSIDERA- TION OF QUESTIONS OF RAILROAD MANAGE- MENT. (April 12, 1893, at Grand Pacific Hotel, Chicago, 111 ) For the first time since this Association was formed at Cincinnati, in 1886, it meets outside of the City of New- York, and the moving cause which has impelled us to hold our semi-annual meeting here to-day is the desire to get closer to the domiciles of our western neighbors, with the hope thereby to increase their interest in our work and in the purposes for which we are associated together. These purposes are surely worthy of attention by those who are responsible for the efficient management of the railroads of this country. They are formulated in our rules of order as "the development and solution of problems connected with railroad management in the mutual interest of the railroad companies of America." How far the Association has fulfilled these purposes a reference to its proceedings will show, in its treatment of the problems of Standard Time, Standard Train Rules, Standard Freight Car Couplers and Car Service Associations, while there is much which it has accomplished which is not recorded in these proceedings. The frequent conference of the leading railroad managers of the country, with their minds de- voted to subjects affecting the welfare of our national rail- road system as a whole, could not but result in a better understanding among them on many points incidental to the principal topics under discussion, and I count among the benefits growing out of these gatherings the prevention of that condition of mental isolation which is often unconsciously assumed by men situated as railroad managers are. .ADDRESSES, AMERICAN RAILWAY ASSOCIATION". 77 The general manager of a railroad is burdened with a responsibility which others cannot share with him. He may invite their opinions, but if he acts upon them he must assume them as his own. It is sometimes difficult for him to make other minds comprehend his reasons for doing things one way rather than another ; perhaps there are conflicting conditions so nearly balanced that his decision is rather the result of a judgment matured by long ex- perience than of a definite reasoning from cause to effect. Only a man of positive character can have the executive ability requisite for such a position, and such a mind trained in this way tends to the isolated condition to which I have referred, and it is with this in view that I have laid some stress upon the incidental advantage to be derived by such men from affiliation with their peers in the com- mittees and in the meetings of our Association. Though I speak of that benefit as incidental which fol- lows from the interchange of conflicting views between railroad managers, I do not mean thereby to lessen its ad- vantage to them nor its value to the interests which they represent. It has a narrowing effect upon any man to go by him- self and do his own thinking, and this is eminently true in thinking about the multifarious aspects of railroad management. One man cannot know it all. The more earnest he is the more probable it is that he will gradually draw away from the broad road along which the consensus of experience is guiding his fellows, into a pathway where he is neither seen himself nor can see what others are doing. It is particularly unfortunate when a railroad manager follows this course in matters which involve the operations of connecting railroads or which could be more satisfacto- rily handled in concert with their managers. The more extensive the railroad system entrusted to the management of one man the greater the possibility for him to become isolated in the way that I have described, and when I con- 78 AMERICAiq^ RAILWAY MANAGEMENT. sider that here, in this great city, there are concentrated more miles of railroad under the management of fewer men than in any other city in the country, it seems to me that this is the proper place to make an appeal to our western members to increase their interest in our work, and to in- vite those who have thus far held aloof to come with us and give us their assistance in carrying out the objects for which our Association has been formed. The resources thus created by co-operation are available for the purposes of each railroad company in our member- ship, and any one of you who will call to mind that this membership now represents a mileage of 128,000 miles, or nearly eighty per cent of the total mileage in this coun- tr}', can perceive what strength there is in such a union, what opportunity for mutual profit in thus standing together for the common welfare. The tendency of the social forces which have been de- veloped under our present form of civilization is toward co-operation. Complain of it, oppose it, legislate against it, but it is in vain, for this is a characteristic feature of the age in which we live. Other interests recognize it and avail themselves of it, and why should it be disre- garded by the most important interest in the country — the interest, in fact, which has made our country what it is ? Competitors though railroad companies may be for traffic, they have a common interest in securing to their patrons the best service and to their stockholders the most economical methods of operation. These are the objects for which we have associated ourselves together, and which can be most surely attained through such co-opera- tion, for what is the effective force of even the largest railroad corporation in this country as compared with the influence exerted by an associated mileage equal to that of all Europe ? And when we look ahead to the task which is to be undertaken in the near future by the railroad manage- ments of this country they may well call on each other ADDRESSES, AMERICAIT RAILWAY ASSOCIATION^. 79 to rally together in a common effort to accomplish what will be expected of them. I have said that one characteristic tendency of the age in which we live is co-operation. There is still another — specialization — and just as there is a tendency to special- ize in manufacturing and in the professions, so there is a tendency to specialize in the operations of railroads. At first railroads were operated with mixed trains, then the passenger service was separated, through service from local service, and now we have limited or suburban pas- senger trains, cattle trains and perishables and refrigerator trains, all evidences of this tendency to specialize as the traffic increases in extent and becomes more diversified in character. But it is not alone the train service which is thus specialized; the time comes upon roads with rapidly increasing business whenjthese varieties of train service cannot be all conductedTupon^e same track, and we see roads double tracked to separateUhe trains running in op- posite directions, and even four-tracked roads to separate the passenger from the freight train service. This separa- tion of tracks, as well as trains, has not reached its ulti- mate limit. We have increased the capacity of our freight cars, the number of car& in a train and the number of trains in freight service as well as in passenger service. On most of our roads we have these trains running along on the same track at different speeds. We are abandon- ing the effort to keep these trains at safe distances apart by time intervals, and are adopting space intervals instead. What we know as the permissive space interval we feel must be superseded by the absolute space interval. The maintenance of this space interval by human agency, frail and at times negligent, is being replaced by automatic devices which neither sleep nor forget. With more fre- quent and faster trains the space intervals must be short- ened until the limit is reached within which a train can be stopped on signal, and yet the public cries for more ! For more speed ! For more frequent service ! 80 AMERICAN RAILWAY MANAGEMENT. When mechanical engineers speak of a possible speed of a hundred miles per hour, I ask myself where is the railroad upon which such a speed can be maintained for even one hour at a time ? Is there such a road in exist- ence in this country to-day ? This may well be termed "an iridescent dream" of the engineeer until the thor- oughfare has been provided upon which it can be realized. It must be a thoroughfare indeed, with a surface like a billiard table, without grade-crossings, with frequent signals protecting the train absolutely for at least one mile in front and rear, and the continuity of the rails in that interval likewise secured and indicated by signal. Gradi- ents and curves must be dominated by a recognition of the rapidly decreasing ratio of efficiency where momentum is one factor as against gravity and centrifugal force. Where is there such a road in -this country ? A road where a scheduled passenger train speed of one hundred miles per hour can be maintained for one hour ? You will all agree with me in saying that there is not one. And yet the theorists are demonstrating that it is possible, the newspapers are spreading the news, and soon the public will think they ought to have it. Once they get that notion well fixed in their minds some enterprising mana- ger will try to give it to them, and then others will follow suit. But as none of you have the ideal road for such ser- vice, you will do in the future as you have done in the past. You will eke out the deficiencies of your roadway by drawing upon that reserve of ingenuity in device and of fertility of resource which seems to spring eternal in the brain of a typical railroad man. And it is not alone in passenger train service that this increase in speed will be demanded. When our freight trains can be operated entirely with power brakes and vertical hook couplers, what an improvement there will be in their speed also, thus increasing the complication in which your service is to be involved ! I have said that these difficulties are to be solved by \ ADDRESSES, AMERICAN KAILWAY ASSOCIATION. 81 ingenuity and by fertility of resource. But these brain forces must have material substance upon which to act. You cannot throw away the roads that you have. You must make them better fitted for the new service de- manded of them. And here you are brought face to face with a familiar acquaintance — the financial bug- bear — where is the money to come from ? From income account ? You know well enough what it is to have to explain an increased ratio of expenses to earnings, and you will be eager for a betterment account to be pro- vided for by the sale of bonds or stock or in any other way except by a charge to operating expenses. But when you shift this burden from your own shoulders to the broader backs of the president and board of directors, you have only put off the evil day^or yourselves, for with an increased bond or stock acje^unFthere must come a like increase in surplus available for fixed x^harges or for divi- dends. / That accelerated speed means improved appliances, and that improved appliances mean further expenditure, which means the necessity for greater net revenue, is a chain of reasoning which, with men of your experience, calls for no argument. To reach these results the first necessity is money, and this money must come directly or indirectly from those who are to be benefited by the improved service. If they want it they must pay for it. And here you must appeal to the traffic department for better rates, for you are steadily approaching the point at which the unit of operating cost cannot be further reduced. Steel rails, iron bridges, heavier engines, and cars of greater capacity have yielded up to you most of their available help. What remains to be saved in that way is but little. There is yet something to be looked for from better fuel performance and from the preserva- tion of crossties and timber, but otherwise the outlook for decreasing the cost per train mile and per car mile is not inviting, unless it may be in the direction of better 82 AMERICAN RAILWAY MANAGEMENT. methods and of better discipline. Here we are again brought in contact with the motto of the American Rail- way Association, " the development and solution of prob- lems connected with railway management in the mutual interest of the railway companies of America." Here we have the two characteristic tendencies of our times brought together — specialization and co-operation, and here it is that each of you has need of the others in order that what is lacking in money to meet these demands for better service may be naade good by your joint ex- perience and ability and by bringing to the aid of the Association the ingenuity, the observation, the experi- mental research which is possessed by the staff of loyal, earnest and zealous men which each of you have about you and from among whom must come those who are to do your work when you have gone. In the organization of our association there is oppor- tunity for these men to serve on our standing commit- tees, and in doing our work they are also serving them- selves. Let me then repeat my entreaties that you should one and all renew your interest in our affairs, that you should recognize that they are your affairs, — affairs of as great moment to the corporations which you represent as are the matters for which you are individually responsible. Make it a point to attend the meetings, to take your part in the committee work. Do not leave a few men as busy as yourselves to take all this burden for your benefit. Eespond promptly and completely to the cir- cular letters calling upon you for information. "When you receive a telegram calling on you to render some special assistance, either personally or otherwise, give your mind to it and see that the help is given. This is the sort of co-operation that is wanted to make our Association fulfill its beneficial purposes, — purposes in which the welfare of the traveler, the shipper, the em- ployee, the official and the stockholder are alike involved. ADDRESSES, AMERICAN^ RAILWAY ASSOCIATION. 83 I speak from experience .as to the good which the Association has done, and by the light of that experience I see what more it can do if yon will be but true to your- selves and to your companies which make up the mem- bership. I speak thus emphatically because I am about to retire from the honorable position which I have now held for six years. While I have given during that time much attention to your affairs, which either had to be taken from my hours of labor or of rest, I have done so cheer- fully, because of the willing helpmates who surrounded me. Not only as your presiding officer, but also as an ex-officio member of your standing committees, I have seen how these men, few in number, have carried on the work of the Association. It is unnecessary for me to refer to them by name. You have seen them on the floor at our meetings, their reports are recorded in your proceedings. To them you are indebted for Standard Time and Stan- dard Eules, for uniformity in safety appliances and for car service associations. And in the time to come there are yet other problems for them to solve in the interest of bet- ter service and of better results. Come, then, to their aid as I have besought you, not in the way of spasmodic im- pulse, but in steady all-the-year-round support, and you will find that in the American Eailway Association you have a central organization which can be made not only the focus for the dissemination of uniform methods, but also when necessary a rallying point for mutual protec- tion. 84 LABOR OEGANIZATIONS. (October 11, 1893, at the Auditorium, Chicago, 111.) The dominant purpose of the American Eailway Asso- ciation is the development and solution of problems re- lating to railroad management in the mutual interest of the railway companies of America. Some of the problems which have been before the Association it has solved definitely, others tentatively. Some of them were capable of but one solution, others have presented themselves in different aspects according to the point of view and varying with the current of events and of opinions. Those which were simple and urgent it attempted first, but with in- creasing experience and with improved methods, and per- haps encouraged by the favorable reception accorded to its work, it has gradually broadened its scope to include yet graver questions of management and of operation. Such a subject is now engaging its attention in the establish- ment and endorsement of proper rules and signals for block signals and for interlocking switches, and the ex- pectant attitude of those interested indicates the impor- tance which is now attached to its conclusions. This fact is appreciated by the members of the Joint Committee which has the matter in hand. It has intensified their sense of responsibility and their anxiety that their report should be adequate to our expectations. It has been usual with our committees in the investigation of any subject to ascertain the practice of c^ch member of the Association and then to recommend that course which corresponds to the generally prevailing opinion. But in this particular matter something more has seemed to be necessary. There has been occasion to harmonize conflicting views, to clear away by discussion and debate differing con- ADDRESS Els, AMERICA^ RAILWAY ASSOCIATION. 85 ceptions as to fundamental principles, and, as the subject developed, it became evident that the whole question would have to be treated more with reference to what would be required in the immediate future than to what had been the practice in the past. It is not my intention to forestall the report of the Joint Committee, nor to outline its purposes, but rather to impress upon you the difficulties it has had to encounter in the development of the problem which it is expected to solve. For the development of a problem is a process necessary to its solution, and if a fault confessed is half remedied, so a problem developed is half solved. Something of this idea I have had in mind in thinking over certain problems connected with railroad manage- ment which are still ahead of us, and not so far ahead of us either but that they are looming up before us, assuming portentous magnitude. Concerning one of them I propose to speak to you to-day ; one which a few years ago could only be mentioned with bated breath in official circles, but which now is not merely in our minds, but on our tongues, so that I feel that no further apology is required in introducing the subject here. That problem is the proper attitude of railroad corpora- tions toward labor organizations, and that I may speak my mind freely, I will remind you that I am speaking for myself and not as an official representative of this Associa- tion. I will speak the more freely, because I reserve the privilege of modifying hereafter the views that I may now express. For this is one of those problems to which I have already referred as presenting themselves in different aspects, according to the point of view and varying with the current of events and of opinions. It is also one not to be handled gingerly and timorously, if it is to be treated instructively, but it must be grasped firmly as one would grasp a thistle to prevent unnecessary irritation. And I shall devote myself rather to the development than to the solution of this problem. 86 AMERICAN RAILWAY MAKAGEMEKT. It is not a novel one in its elementary features. It is no new thing for the workman to be dissatisfied with the terms and conditions of his service. Such dissatisfaction dates back to the time when the Israelites refused to make bricks for the Egyptians without straw. But those were slaves, and so the workingmen continued to be slaves down to the middle ages, when in France and England they re- volted against their oppressors, to be put down by force. It was only through violence and turmoil that they ob- tained some measures of relief, and the artisan and the laborer continued in a more or less pronounced condition of servitude, even in the most civilized countries of Europe, until the last restraints of bondage were consumed in the fires of the French revolution. Those who would harshly criticise the efforts of European workmen to join in meas- ures of self-protection should not forget the centuries of wrongs which they had to endure. Because they have been greatly sinned against much must be forgiven to them. But it may be asked what has all this to do with this country ? Workingmen here have never had to pass through such ordeals or to submit to such oppression. In- deed they have not, and it was to mark this very contrast that I have emphasized the conditions through which the workingman has had to pass in Europe. If ever there was a country in which the sons of toil have enjoyed the fruits of their labor unrestricted by any law that did not bear with equal force upon their fellow-citizens, it is this country of ours. In fact, I will say that there has never been such another. And therefore, when we come to dis- cussing the relations of the employer and the employed, of the man who works and of the man who pays him — we have not to overcome or to forget the prejudices, the pas- sions, the bitter recollections of centuries of oppression re- sented by violence, which complicate and embarrass the ad- justment of such relations across the ocean. We have here to look upon it as but a business issue between men who are by birth and by law the equals of each other in all respects ADDEESSES, AMERICAl^ RAILWAY ASSOClATIOi^^. 87 SO far as they are alike honest and disposed to deal fairly. Even in the matter of compensation for service performed there is no further obligation than on the one hand to do that which was to be done, and on the other to pay that which was to be paid. When these two things have been fairly accomplished the reciprocal obligation has been discharged, and there is no favor on either side. This is the underlying relation of labor and capital in this country, of the employer and the employee, and it seems so simple where it is not mixed up withhold world prejudices and memories, that one is inclined to wonder why there should be so much difficulty in adjusting so simple a matter ; why it has come to the front as one of the spectres at the banquet which will not down at any one's bidding. The difficulty arises in adjusting the terms and conditions upon which the service is to be per- formed. When differences arose as to these matters, they at first assumed the form of mutterings of dissatisfaction on the part of the employee which were disregarded by the em- ployer. Then the mutterers joined in a chorus which found full voice in a committee specially chosen to appeal to the employer. Here the employer threw the first stone. He resented the attempt to unite in complaint by dis- charging the leaders ; the strongest or the loudest, at any rate the foremost, among the workmen. What was left to them but to prolong, to intensify, the agitation for self- protection and to retort upon the aggressive employer by organizing a strike. The strike was answered by a lock- out, and the response was a boycott. These efforts at or- ganization among workmen were temporary and disorderly. As passions were aroused by opposition, the leaders lost control, the outside mob took charge of the situation, which passed from a dispute into a riot. At this point when public quiet was disturbed, "the representatives of public order interfered and peace was enforced. It is to the credit of the leaders of the better paid trades that they soon recognized the folly of such a course and 88 AMERICAN RAILWAY MANAGEMEKT. -» directed themselves to organizing permanent associations, efficiently regulated and controlled and prepared for strikes by accumulated assessments. For after they were thus organized they were able to oppose an orderly refusal to work to the refusal on the part of the employer to yield to their terms. A strike under such conditions was not a breach of the peace, and the strong arm of the law could not be wielded against their cause. The only alternative was a lockout, and the pitched battle was superseded by the blockade. This gave time for heated passions to cool and for reason to resume its sway. Hence violent measures were replaced by discussions in which the arguments on each side could be heard by the other and a foundation laid for a compromise. A point had been reached in the adjustment of the relations between the em- ployee and the employer at which the terms and con- ditions of service could be determined by contract. This is exemplified in the iron trades, where the scale of wages is established by committees from both sides, in which the state of the market, present and prospective, the financial outlook and even political theories are taken into consider- ation. It is truly a rational method, affording full scope for the exercise of judgment, experience and persuasion in arriving at a conclusion. But if wilful perversity or ignorant selfishness prevail in the councils of either side, the strike or the lockout must be renewed. This dilemma admits of but one solution — the submission of one party to the demands of the other. An alternative solution could be found in arbitration but for the difficulty in enforcing the finding of the arbitrator. As yet the lawyers do not look kindly on arbitration, and the law does not lend itself readily to such an invasion of its jurisdiction. And again, while one party, the employer, is a substantial fact, a person or a corporation that the law can reach, the other party to the arbitration is neither the one nor the other. It is an irresponsible organization, invisible to the sheriff, against which no judgment will lie and upon its ADDRESSES, AMERICAN RAILWAY ASSOCIATION". 89 assets no levy can be made. To this point, then, the de- velopment of this question has been reached, that the ad- justment of the relations between the employee and the employer is recognized on both sides as a matter in which the terms and conditions of employment can be made the subjects of an agreement ; the means for arriving at such an agreement are at hand and are understood. If an agreement can be reached, well and good. If the oppos- ing parties cannot agree, no third party can intervene effectively ; there is no way out but by passing under the yoke of submission. This is the situation asipresented to us to-day, and which we must recognize if we/seek to solve the problem which I have stated to be the proper attitude of railroad corporations towards labor organizations. It is a division of the subject of the relations of capital and labor which covers only one portion of the whole field, but a portion which is characterized by conditions peculiar to itself. Industrial enterprises in general are engaged in the production of articles or materials to be consumed by man- kind, they are manufacturing or mining enterprises ; their undertakings are of a private character ; their affairs are their own business and concern no one else so long as they are conducted in a lawful way. If one shoe fac- tory, or cotton mill, or iron furnace is closed — whether from want of orders or from disagreement between the owners and their employees, it is not a matter affecting the public welfare. Their customers can go elsewhere for shoes, or cotton goods, or iron wares. But railroa.d corporations are not, primarily, manu- facturers or miners. They produce no articles for sale. They are carriers by land for hire, just as the wagoner or the carriage driver is, but with the further difference that in return for the exercise of the sovereign power in their behalf they are bound to a public service which they cannot evade. They are engaged, by day and night, in the constant performance of a personal service to each 90 AMERICAK RAILWAY MANAGEMENT. passenger who travels and to each shipper of freight. They have, too, a special contract with the Post-office De- partment affecting everyone who reads a newspaper or writes a letter. With this public burden to carry, an obligation essen- tial to their corporate existence, they are at a disadvantage when they come to trying conclusions with their em- ployees. The lockout is forbidden to them as a measure of defence. They can neither close up their stations nor stop their trains. If the railroad management cannot agree with the men as to the terms and conditions of its employment, it must, at its peril, find competent men to replace them and in numbers sufficient to maintain its service without inconvenience to its patrons. The public will be satisfied with nothing less, and so long as the men abstain from violence, the corporation and its representa- tives are alone held to account by the laws, by the many persons inconvenienced and by the newspapers. Under such a pressure, what wonder that railroad managers yield to demands to which their judgment does not give assent, or that employees gain from each successful step the as- surance of submission to yet further demands ? And when may we expect these demands to cease ? Are they to be limited only by the desires of those who are in a position to enforce them ? There is another limit, the financial ability of the corporations to satisfy them. The percentage of pay-rolls to operating expenses has been constantly increasing, and this is the cause of the in- creasing percentage of expenses to earnings. It is stated that in the division of gross earnings the employee receives four times as much as the stockholder does. In 1891 less than one-fourth of the railroad stock received as much as 5 per cent., and over 60 per cent, received nothing. Is there any hope of a change for the better ? Not until the rate per ton mile increases or the cost per ton mile de- creases. In what direction can any of you here present look for a considerable reduction in operating expenses ? ADDRESSES, AMEiRICAN RAILWAY ASSOCIATION. 91 Will you use fewer cross-ties or buy less rails or burn less coal ? No ! You cannot find relief in this direction ; you are dealing with physical conditions which you cannot control. You know that you can only reduce expenses by decreasing your pay-rolls. This you must do. And how do you do it ? By reducing train service, to the pub- lic inconvenience ; by postponing repairs of equipment, which is only putting off the evil day ; by postponing much needed improvements. Anything, except a re- duction of the rates of pay. You may discharg^ or sus- pend nien by the hundreds, depriving their families of their daily bread, but you dare not distribute the burden among all your employees. You shrink from the unequal contest, and well you may. Experience has taught you that you have to meet a well-organized foe, handled by experienced and astute leaders, to whom implicit obedience is given, and with whom public opinion will side so long as it is not violently repelled. On your side you have a public service to perform, completely and unreservedly, under- circumstances which, in case of strike, will strain you mentally and physically to the utmost, and in the background a board of directors sensitive to public criti- cism, and perhaps personally interested in stock specula- tions. Under such conditions the ordinary man will fol- low the line of least resistance, and refrain from doing that which his judgment recommends and justice demands — to make the reduction in wages bear in like proportion on all, or, if favoring any, to favor those who receive the least. But this you will not do. The reduction which must be made falls on those who are least able to resist, because they are without organization, upon clerks and track-men and unskilled laborers. I am not criticising you unkindly for this. I am stating a fact which you know to be true as well as they do, and you do this because you can find no other relief. But as time goes on these classes of em- ployees, spurred to it by their own misfortunes and by wit- nessing the advantages which others have gained by or- 93 AMEKICAK KAILWAY HAKAGEMEKT. ganization, will organize themselves. Then where will the axe of retrenchment fall. That will be for you to determine, and you will be brought face to face with that problem, if the decrease in the rate per ton mile is to con- tinue. You must appeal to the traffic management to re- frain from that foolish competition which ignores the cost of the service performed, and not until they recognize the necessity for so doing may you hope to arrest this crisis toward which the most of our railroad mileage is tending, and which, when it does come, falls upon those responsible for the operations of the road. If they will not heed to your appeals, then you should plainly put the matter be- fore your executive officers, and place the responsibility where it belongs. It is a matter in which you should make common cause, those who are managing prosperous roads as well as those who are not, for sooner or later you will all have to drink of the same bitter cup if measures be not taken in time to avoid it. Having developed my problem to its last bitter elements, I may be expected to suggest a solution, but it is one thing to develop a problem and another to solve it. The one is laying open the hidden cause of disease, the other is to apply the proper remedy. The one needs but a knowledge of the anatomy of the subject and a steady hand ; the other requires a power of forecast, of following out the probable results of possible policies, which is given to few men, whether surgeons or railroad administrators. What, then, I may offer in the way of a solution is presented with less confidence than has sustained me in the development of this subject. While as to the one I might withstand adverse criticism, as to the other I should be disposed to yield. But I think that there are certain conditions afPecting the attitude of railroad cor- porations to labor organizations which are of so peculiar a character as to separate this branch of the subject from those relating to ordinary industrial enterprises. It is not a matter of manufacturing, selling and buying ADDRESSES, AMERICAN RAILWAY • ASSOCIATION. 93 goods. It is a matter of performing a public service continuously, safely and with dispatch, a service which affects every man, woman and child in the land to such an extent that railroad transportation is properly looked upon as a question of public welfare, a matter which has been aided by the sovereign power by loans and donations, by special legislation and by the exercise of the right of eminent domain. In return for this j aid the corporations are burdened with obligations which they cannot evade and which render them powerless to resist the demands of their employees when efficiently organ- ized. To the demands of these organizations neither the laws nor public opinion set any limits so long as they are not enforced by violence. Yet there is a public demand for lower rates which the traffic officials do not firmly resist. The decrease in the rate per ton mile and the increase in the cost per ton mile cannot go on together indefi- nitely, one or the other must cease. Either it is to the public interest to have cheaper rates and lower wages or to have higher wages and dearer rates. The public interest lies in better and safer, rather than in cheaper service, and a minute advance in the charge for that service, an advance so small that if divided among the millions of transactions for which the cor- poration is paid would yield a fund sufficient to insure fair wages to every railroad employee and reasonable dividends to every stockholder. For both stockholder and employee are paid from the same fund, and it is not to be expected that the railroad system of this country can be extended to meet the demands of a growing country and increasing numbers of employees continue to receive full wages unless capital so invested has a prospect of a reasonable return. But if this were recognized as reasonable, that the compensation should be sufficient for fair wages and for reasonable dividends, what has the public a right to 94 AMERICAN RAILWAY MANAGEMENT. expect ? Certainly that the service shall be continuous and efficient, that it shall not be interrupted by disputes between employer and employee. It may with justice insist upon a rational adjustment of such differences, and if a way can be pointed out by which it can with propriety intervene, its assistance might be counted on for ^Tch a purpose. The proper way to adjust such differences is by agree- ment, by an agreement between contracting parties, com- petent and responsible. As to the competency and re- sponsibility of one party, the railroad company, there is no doubt, but as to the other, the employee, he as an individual possesses neither qualification. As well stand on the river's brink and seek to enter into an agreement with the current swiftly flowing by, a constant succes- sion of drops of water, as to make a contract with a changing force of men, coming and going as each sees fit. The very organization which they have made for self- protection may be made the means for enforcing their contract obligations. To this end, they should be duly incorporated under such restrictions as will ensure their legal competency to contract on behalf of their members. •The responsibility for keeping these contracts will then rest with their incorporated organizations, which can, by assessment, accumulate a fund that can be invested safely where it can be reached in a suit for damages for breach of contract. There will then be no voluntary arbitration, to be viewed askance by bench and bar, but the same legal procedure will be available to secure an observance of con- tract relations between railroad corporations and work- men's corporations that apply to other business contracts. The legal recognition of such agreements will be a great step toward the preservation of harmonious relations be- tween the two parties and the assurance to the public of uninterrupted railroad service. A failure to agree upon the terms of a mutually satis- factory contract would still be possible, but only in th^ ADDEESSES, AMERICAN RAILWAY ASSOCIATION. 95 event that the employees of each class were able to com- bine in single corporations. Past experience leads ns to believe that this could not be done, that either from per- sonal ambition or from other causes there would be in- dependent corporations of workingmen that would com- pete for contracts with desirable railroad corporations, and that in this way it would always be practicable to arrive at an agreement with one or another. The terms and conditions which should enter into such agreements I will not at this time undertake to discuss. Whatever they may be, the public interest and conven- ience will always claim consideration in preparing them if public opinion and the laws are to aid in enforcing them. As I have said, it has been my purpose in these remarks to devote myself rather to a statement of the issues involved than to a solution of them. In doing this I have endeavored to take into account the principal factors which should be included and to propose a course in treating them which will not run counter to that spirit of co-operation that pervades the present era, and which we may expect to- become still more influential in determining the destiny of our American railway system as well as of our country. 96 AMERICAN RAILWAY MAl^AGEMENT. OPERATING EXPENSES OF A RAILROAD. (April 11, 1894, at Hotel Brunswick, New York.) The inventions and improvements in colliery tramways which made railroads available for public use originated with practical mechanics, and gave such prominence to the profession of engineering that in those early days engineers alone were selected as railroad managers. The general acceptance of railroads as common carriers led to such a recognition of the importance of the art of transportation by rail that men who evinced an aptitude for handling trains successfully then became in demand as managers. With the increase in the number of rail- roads the competitive traffic virtually overshadowed the difficult problems in construction and transportation which had given value to the successful engineer and transportation official, and as the traffic manager got nearer to those who controlled competitive shipments his importance increased with the board of directors. In the desire to augment the published gross earnings by a larger volume of business the experience and the information pertaining to the science of engineering and to the art of transportation have been somewhat dis- regarded. It has been assumed that so long as the gross earnings are maintained or increased, the standard pro rata of expenses to earnings should not only be main- tained but even diminished, and that the cost of the ser- vice should be reduced with the reduction in the rate charged for it. The efforts to take away each other's business have been pursued with such zeal and ingenuity that the surplus revenue can no longer furnish the means for improvement nor for liberal operation except by a ADDRESSES, AMERICAI^ RAILWAY ASSOCIATION". 97 reduction of the dividend fund. The matter of pressing moment is to eke out the dividend from the fund set apart for operating expenses, and it has therefore seemed to me that a timely topic for my address to-day would be the reduction of expenses in railroad operation. In discussing the reduction of expenses we must keep in view the distinction between the expenditures made for performing the service of transportation and for maintaining the property in present condition, that is the ordinary expense account, and those made for the pur- pose of improving the condition of the property or for increasing its capacity to perform the service of trans- portation, that is the extraordinary expense or improve- ment account. The responsibility of the railroad man- ager is different with respect to these two classes of ex- penses. He is not bound to give the public improved service at the expense of his stockholders, though it is plainly his duty to give safe service. He must not seek economy at the expense of safety. To a certain extent he can economize with a decrease in traffic by a diminu- tion in the number of trains, and the expenditure for freight handling may be somewhat reduced with de- creased tonnage, though the expenses which fluctuate with train mileage and with tonnage constitute a rela- tively small portion of the total operating expenses, and outside of train service and freight handling the general service can be but little diminished with the diminution of traffic in a period of temporary depression. But when the same tonnage is handled at reduced rates the same work must be done, that is, if the road is ordinarily operated with due regard for economy ; but less money must be paid for doing it. When it comes to doing the same work for less money, the reduction must be made by paying less for men or materials, or for both. This reduction will at first be made in quantity as far as that is practicable. You will reduce your force and your stock of supplies, But when the minimum has been 98 AMERICAN RAILWAY MANAGEMENT. reached, below which the standard of efficiency would be impaired, then any further reductions must affect the pay of the men and the prices of the supplies. Naturally, we leave the wages until the last, and seek to bear down the cost of the supplies. This cannot be carried very far without affecting their quality, and it is a matter which comes of long experience and of intimate acquaintance with their manufacture to be able to determine whether the reduction in prices has not been attained by such a reduction in quality as substantially to make the lower priced article dearer than that for which a higher price is asked. But, when you have reached your limit in reducing your force and in cheapening your supplies, you have but one other direction in which to seek still further economy, and that is in a reduction of wages. How will you do it ? Will you insist upon a horizontal reduction of so much per cent. ? Or will you make the percentage of reduction decrease with the rate of pay ? Every step that you take will meet with opposition from those that are to be hurt by it, and where such opposition can be strongly organized you will be tempted to ease up in that direction and to lay a heavier load on those who cannot offer so much resistance. The principal considerations then in an enforced re- duction of expenses are to determine the extent to which such a reduction can be applied as between men and materials, and the fairest way of applying a reduction to men's wages. About two thirds of the ordinary operating expense account go to salaries and wages, the remaining third is applied to supplies, implements and all other items which may be briefly termed materials. I will endeavor to illustrate by an example the effect of such a reduction on a road 500 miles long with gross earnings of $6,000 per mile, which is perhaps an average example of the length and earnings of a railroad in this country, and will assume that such a road would ordinarily be operated with ADDE ESSES, AMERIGAiq- RAILWAY ASSOCIATION. 99 economy at 66 per cent, of the gross earnings. We would then have a road with Gross earnings, say of $3,000,000 Operating expenses 2,000,000 Surplus 11,000,000 Now with gross earnings reduced 10 per cent., or $300,000, the manager would be expected still to operate it for 66 per cent, which would be as follows: Gross earnings, say $2,700,000 Operating expenses, say 1,800,000 Surplus $900,000 This would be a uniform decrease of 10 per cent, in gross earnings in the fund for operations, and in that fund also from which fixed charges and dividends are to be paid. The manager would then have to decide how to reduce kis expense account from $2,000,000 to $1,800,000. As wages constitute about two thirds of the total cost of op- eration, two thirds of the reduction should be made from wages, and the other third from what I have termed materials. The division of this 10 per cent, reduction would then be as follows : Wages reduced from $1,334,000 to $1,200,000 Materials, etc., from 666,000 to 600,000 Total, from $2,000,000 to $1,800,000 But if you will classify the items which are not wages you will find that some of them you cannot reduce, be- cause they are not under your control. For example : there are legal expenses, insurance, injury to persons and property, bridge material, cross-ties, rails, frogs and switches, fuel, car mileage balances, loss and damage to freight, and other items which will also occur to you. But considering only those which I have enumerated, one fourth of the total cost of operations is for items that you cannot touch, and the reduction of 10 per cent, in 100 AMERICA^N^ RAILWAY MANAGEMEI^T. the total cost of operations must fall upon 75 per cent, of that total, which means a reduction of over 13 per cent, in wages and in other items, the cost of which can be con- trolled by the management. The total reduction in each department will vary with the varying percentage of un- controllable items that are charged to that department. In referring to these departments I classify them as follows : Administrative department, including so-called general expenses and expenses of purchasing agencies. Eoadway department, including all expenses pertaining to maintenance of way and structures. Machinery department, including maintenance of mo- tive power and rolling stock, also fuel and wages of loco- motive crews. Transportation department, including wages of train men. Freight and passenger department, including all station agents, clerks and laborers employed in billing and handling freight and passengers. The total expense account of $2,000,000 would be divided among these several departments about as follows : Administrative department $180,000 or 9 per cent. Roadway department 400,000 " 20 " Machinery department 740,000 " 37 Transportation department 300,000 "15 " Freight and passenger department 880,000 " 19 " Total $2,000,000 The percentage of total expenses in each department which goes for wages varies materially and is about as follows : In administrative department 28 per cent. In roadway department 55 " In machinery department 59 " In transportation department 75 " In freight and passenger department 89 " Any uniform reduction in pay will therefore affect each department very differently. For instance, 89 per cent. ADDRESSES, AMERICAN RAILWAY ASSOCIATION. 101 of the total cost of operating the freight and passenger departments would be affected, while in the adininistrative department only 28 per cent, would be affected. On this basis the total reduction of $2,000,000^ would be borne in each department as follows : In other Reduction. In wages. items. Total. Admiuistrative deparlmeut $5,000 |5,000 1 10,000 Roadway depart ment 80,000 3,000 83,000 Machiuery departmeut 60,000 15,000 75,000 Trausportalion department 30,000 8,000 83,000 Freight and passenger department. . 45,000 4,000 49,000 Totals $170,000 |30,000 $200,000 On such a road as I have used for an illustration, out of a total expense account of $2,000,000, about $1,270,000 would go for salaries and wages, and of this amount about $410,000 would be paid to engiiiemen, firemen, trainmen, switchmen and telegraph operators. Where these classes of employees are protected against reduction of wages by contract, the total reduction must fall upon those classes which are not so organized, and whose wages would amount in all to about two thirds of the pay roll account. Under such conditions the result of an apparent reduction of ten per cent, in total expenses would be to reduce by twenty per cent, the salaries and wages of all officials and em- ployees whose pay was not fixed by contract. It is a matter for traffic officials to ponder upon, when they are cutting rates to take away each other's business, that the reductions in gross earnings thereby occasioned must be made good from operating expense account. In the case which I have worked out as an illustration, if a reduction of 30 cents per ton had been made on a considerable volume of traffic, coal, for instance, 10 cents would have come out of the fund available for fixed charges and dividends, 3 cents out of the vouchers paid supply men, &c., and 17 cents out of salaries and wages, that is, if the reduction was uniformly distributed. Is there no way to stop this continuous shrinkage of 102 AMERICAN RAILWAY MAKAaEMEKT. rates on competitive traffic ? It is the most serious prob- lem which confronts the railroad managements of this country at the present time. The total volume of this business is not increased by such reductions, though the total revenue derived from it is proportionately dimin- ished, however the total loss may be distributed among the competitors. It is not possible, from available statis- tics, to separate the tonnage and revenue of competitive and local traffic. The totals are given in the Inter-State Commerce Commission report for 1892 as, in round num- bers, 88,000 million ton miles and 799 million dollars. The total common stock is given at 3,978 million dollars, and the total dividends on common stock at 79 million dollars, an average dividend of two per cent. Over 70 per cent, of the total common stock received no dividend whatever. An increase of one mill per ton mile on the total tonnage in 1893 would have resulted in increased net earnings of 88 million dollars which, if added to the total amount paid in dividends on common stock, would have raised the average dividend from 2 to 4 per cent. What possibilities there would be in such improved earn- ings for better service, for greater facilities, for higher wages, for increased sale of supplies, for a general advance in the value of railroad securities, and indeed for brighter prospects in every field of industry in this country of ours, where the railroad is so important a factor. But why present such a picture to the railroad man- ager whose daily task is to make yet another turn of the screw on operating expenses ; a vision of that which is as impossible as it is attractive. And why is it impos- sible ? Why is it that authority should be given to traffic officials arbitrarily to reduce rates regardless of the cost of performing the service ? Because the men who are responsible for gross earnings are responsible for nothing else. They have gone on from year to year, each striving to snatch as much as he could from the common reservoir of traffic, and the swelling tide of the nation's prosperity ADDRESSES, AMERiCAit RAILWAY ASSOCIATION". 103 kept the bowl ever full and overflowing. The contest in which each sought to get the largest share becatne so ex- citing that all other considerations were set aside, not only considerations of cost and value of service pe/"fornied but even of good faith, and I may say of common honesty. In what an off-hand manner five cents would be taken off a rate of twenty-five cents per hundred pounds for a thousand mile haul. Yet the rate of twenty-five cents was only half a cent per ton mile, and the cut of five cents was a reduction of 20 per cent, in the total rate. And I have known such sweeping reductions to be made in a vaunting way, on the spur of the moment and in a spirit of resentment because of some offensive action by a com- petitor. The time has arrived in the development of this country's resources and of its railroad system, when such a policy in the management of competitive traffic cannot be persisted in without disastrous consequences. The in- crease in the volume of such traffic is proportionately less year by year ; the bowl is no longer overflowing. But the competitors are increasing ; year by year others are tapping the reservoir. Either the volume of tonnage must increase more rapidly than the rate diminishes or the total revenue from competitive traffic must decrease. That is just what is taking place, and the shortage must be made good by reduction in operating expenses. As I have just asked, is there to be no end to this shrink- age of rates ? Will it avail anything with our traffic officials to impress upon them the fact that the point has been reached at which each further step in economy means another step in the reduction of wages ? I believe that it will ; that the men who display so much intelligence in outwitting each other to get business are competent to recognize that there is a point below which the rate is less than the cost of the service, and that when that point is reached they can in no way more successfully get the 104 AMERlCAi^ RAILWAY MANAGEMENT. best of a competitor than by forcing him to take the busi- ness. But how can that point be ascertained ? Not by figur- ing out the average rate per ton mile. The statistician who devised that standard of performance is responsible for most of the ills which railroad properties have suffered. It is so easy to make the calculation, once the total ton mileage and the total revenue are known, that it has been made the basis of comparison by Wall Street brokers, grangers, demagogues, legislators, by all who had a moral to enforce or a tale to tell at the expense of some unfortu- nate railroad management or corporation. It serves no practical purpose. It has no actual existence. It is a mere figment of the brain. Yet it is the father and the mother of the long and the short haul idea ; it is the standard for operating expenses, and it is the only yard- stick that is put in the hands of the traffic official when he is measuring off competitive traffic. No better service could be done for our railroads than to demonstrate its in- efficiency, its utter nothingness ; to dissolve the phantom into the thin air whence it came. We move freight by car loads, not by tons, and it is by car miles and not by ton miles that the cost of the service should be reckoned. Add to this standard the cost of terminal service and you will give the traffic official the means of ascertaining the dividing line between profit and loss in making rates on competitive traffic. And you will have a standard by which the work of the operating official can be fairly measured, also one which may be used ,to demonstrate to the local shipper that he is not the patient ass which is carrying the long haul shipper on his back. I feel sure that the more you think of it — you on whom falls the duty of reducing expenses as the rates are reduced, you will see how important it is that the cost and value of the service that you are responsible for should be measured by this rational standard rather than by one which helps no one and proves nothing — a standard which, if intelli- ADDRESSES, AM ERIC AK RAILWAY ASSOCIATION. 105 gently used by the traffic official, will deter him from re- ducing rates at the expense of wa^es, and will assure a profitable revenue from the entire volume of competitive traffic ; a standard which will account for the aid rendered by heavier locomotives, lighter grades and curves, and every other improvement which cheapens the service and makes up the sum of possible economies in railroad operation. To the f-^affic officials the stockholders must now look for relief. The prosperity of their property is no longer in the hands of the operating officials. Human ingenuity seems to have about done its utmost to give cheap trans- portation by rail. Every available invention has been adapted to that purpose, and if the limit of economic re- sults has not yet been attained, it has been so nearly reached that the small percentage yet to be saved can only be gained by painful methods more characteristic of a country and of an industry tending to decay than of a great people full of energy and resource and of the great- est factor in modern civilization. lOG AMERICA K RAILWAY MANAGEMeKT. EATES OF TEANSPORTATION AND COST OF SEEVICE ON AMEEICAN EAILEOADS. (April 17, 1895, at Planters' Hotel, St. Louis, Mo.) The most serious fact which confronts the railroad managements of this country is the continuing reduc- tion in the margin between the charge for transportation and the cost of performing the service. The annual approximation of these two lines of figures, as we look along them toward the horizon before us, is not a per- spective illusion but an actual drawing together toward zero. We have postponed the critical moment at which they will meet in the vanishing point, by economies, true and false ; by a more enlightened use of the facili- ties at our command, and by requiring more work for less pay. But strive as we may between the conditions which confine our path on the one hand and on the other, cost and compensation, they cannot be kept parallel by changing the direction of one so long as the other changes at a greater angle ; in other words, so long as the pay for doing the work decreases faster than the cost of doing it can be decreased. Having made this assertion, let me proceed to substantiate it, relying for statistics upon the annual reporcs of the Inter-State Commerce Commission. And first as to freight business. Look at the annual average revenue and cost per ton mile from 1888 to 1893, and the difference between them. For purposes ot com- parison, some approximate figures are also given frcm advance reports for 1894 : CENTS PER TON MILE. Revenue, 1888 1.001 1889 922 1890 941 1891 .895 1892 .898 1893 878 1894 866 Cost. Profit. .630 .371 .593 .329 .604 .337 .583 .312 .583 .316 .579 .299 ADDRESSES, AMERICAN RAILWAY ASSOCIATIOK. 107 \ ANNUAL DECREASE. — CENTS PEK TON MILE. Revenue. Cost. Profit/ 1889 079 .037 .042f 1890 Inc. .019 Inc. .011 Inc. .008 1891 046 .021 .025 1892 Inc. .003 .001 Inc. .004 1893 .020 .003 .017 1894 012 The reduction in cost since 1891 has been so minute as to indicate that the minimum cost of performing the service has been substantially reached, at least until some considerable aid to further economy shall have been dis- covered or invented. Now compare the total reduction in six years, from 1888 to 1893. TOTAL DECREASE. — CENTS PER TON MILE. 18S8. 1893. Decrease. Per Cent. Revenue 1.001 .878 .123 12 Cost 630 .579 .051 8 Profit .37i .299 .072 19 In these six years we have not only given to the public the entire result of our economies and of our improved methods of operation, amounting to .051 cents per ton mile, but we have given them .072 cents besides, an ad- dition of nearly 150 per cent, over the decrease in cost. That it is about time to call a halt in this race toward zero is evident from the fact that while the cost decreased .047 cents from 1888 to 1891, it decreased but .004 cents from 1891 to 1893. There is a bright side to this dark picture, for which we are indebted to the bountiful re- sources providentially bestowed upon this favored land and to the industry and ingenuity of our people. This combination of resources and energy so increased the total volume of traffic in these six years as measurably to neu- tralize the loss of revenue which would otherwise have re- sulted from the lavish and irrational reduction in rates. As the statistics bearing upon this point are not given for 1888, the following statement begins with 1889 : 108 AMERICAK HAILWAY MAKAGEMENT. ANNUAL FREIGHT TRAFFIC. Ton Miles. Increase. Per Cent. 1889 68,727,223,146 1890 76,207,047,298 7,479,824,152 11 1891 81,073,784,121 4,866,736,823 6 1892 88,241,050,225 7,167,266,104 9 1893 93,588,111,833 5,347,061,608 6 Average annual increase 8 per ctnt. But the preliminary report for 1894 reveals a change in the annual tonnage movement so remarkable as to men- ace our sublime reliance upon the continuing capacity of this favored land to force into the channels of transpor- tation an ever increasing volume of business. A comparison of these figures in this advance report with those given in the advance report for the previous year, results as follows : 1893— Ton miles on 149,559 miles 84,968,987,747 1894— Ton miles on same roads 70,426,344,965 Decrease (17 per cent.) 14,543,642,782 Instead of the increase from year to year which the tonnage reports had shown since the Inter-State Com- merce Commission had a being, we are for the first time confronted, not by a diminution in the flowing tide, but by a reversal in the current. The volume of business no longer rises in the reservoir of railroad traffic from which it is drawn by an increasing number of mains. It is ebbing from the high water mark, and the widening strand is covered with the wrecks which it has left as it receded. In one year it has substantially fallen to where it was five years before, nor is this the only disagreeable feature of the situation in which the railroad managements of this country now find themselves. Attention has al- ready been called to the continuing decrease in the rate of compensation for freight service. We see that it has fallen .135 cents per ton mile, or 13 per cent, since 1888. During that time the cost has decreased but .051 cents or about 8 per cent., thus reducing the average profit on the ADDRESSES, AMERICAIT RAILWAY ASSOCIATION". 109 haul from .371 cents to about .287 cents ; a decrease of about 22 per cent. So long as the volume of business per mile increased on an average about 6 per cent, per annum, this steady- decrease in the profit on the haul was not shown in the total volume of earnings from freight traffic. ANNUAL FREIGHT EARNINGS. Gross Earnines. Increase. Per CCTit. 1889 $633,664,997 1890 717,108,315 $73,443,318 11 1891 725,610,067 8,501,752 1.2 1892 -792,404,631 66,794,564 9 18J3 821,703,623 29,298,991 3.7 The average annual increase in total freight earnings has been about five per cent., while the average increase in the volume of traffic has been over eight per cent. The irregularity in the rate of annual increase in earn- ings has been greater to a remarkable degree than in the rate of increase of traffic. This is due mainly to the. fluctuation in the average rate. For instance, the in- crease of 11 per cent, in the freight earnings of 1890, ac- companied an increase of .019 cents in the rate combined with an increase of 11 per cent, in traffic, while the slight increase in the earnings of the following year was due to a decrease of .046 cents in the rate with but 6 per cent, increase in traffi-c. Still when the gross freight earnings for 1893 are com- pared with those for 1889, the increase is impressive. Not so much, however, when we compare these figures with the ton mileage, and with the net revenue. But before making this comparison let us glance again at the advance report for 1894. The product of the ton- miles therein given by the rate gives the total earnings : On that traffic as $609,890,147 And on the same roads in 1893 746,027,712 Decrease (18 per cent.) $136,137,565 110 AMERICAN RAILWAY MANAGEMENT. Now compare these figures with those for 1892 and 1893: INCREASE IN FREIGHT EARNINGS. 1893 over 1891 $66,794,564 or 9 percent. 1893 over 1892 29.298,991 " 3.7 Decrease, 1894 over 1893. 136,137,565 " 18 No comment is needed to call attention to the situa- tion which these figures represent. Let us now return to the situation in 1893, as compared with that in 1889 : Ton Mileage. Freight Earnings. 1889 68,727,223,146 1633,664,997 1893.... 93,588,111,833 821,703,622 Increase 24,860,888,687 $188,038,625 Per ceut 34 30 In these five years the increase in the gross freight earnings did not keep pace with the ton mileage, which is due to the decrease in the rate, yet the result would have been quite satisfactory if the net earnings had shown i.s well. The annual net earnings during the same years were as follows : Net Freight Earnings. Increase. Per Cent. 1889 $226,112,564 1890 256,817,749 $30,705,185 14 1891 252,950,206 (dec.) 3,867,543 1.5 (dec.) 1892 278,841,718. 25,891,512 10 1893 279,828,454 986,736 0.3 The average annual increase in net earnings from freight traffic during these five years was about 4-J per cent., but the fluctuations from year to year have been so great as to emphasize the lesson which I have sought to enforce upon the minds of railroad managers ; that is, that the compensation for the service should bear a due relation to the cost of performance. This is clearly shown by the following statement, in which the percentage of increase or decrease in ton mileage, gross and net earnings, are brought together : ADDRESSES, AMERICAN" RAILWAY ASSOCIATION". 11 Ton Miles. Gross Freight Earuings. Net Freight Earnings. Increase. Increase. Increase. 1889 1890 11 per cent. 13 per cent. 14 per cent. 1891 6 " 1.2 *• 1.5 " (dec.) 1892 9 " 9 " 10 1893 6 " 3.7 " 0.3 " Such results as are shown in 1891, when an increase of 6 per cent, in ton mileage resulted in a decrease of 1.5 per cent, in net revenue, and in 1893, when 6 per cent, in- crease in ton mileage resulted in only 0.3 per cent, in- crease in net revenue, are indeed anomalous as compared with the results in the alternate years. But they can be readily understood by reference to the comparison of an- nual increase and decrease in the rate, cost and net receipts per ton mile, given above. In 1890 the net earnings per ton mile increased .008 cents, and in 1892 .004 cents, over the previous year, while in 1891 there was a decrease of .025 cents, and in 1893 of .017 cents, over the previous years. That such minute variations in the rate per ton mile should so seriously affect the total result ought to be remembered by traffic managers when they are tempted to cut rates ten or twenty per cent, in order to compete for the favors of a large shipper. There is another lesson to be learned from these fig- ures. It would seem that after maintaining rates very well in 1890, the traffic managers went wild in the following year and reduced rates .046 cents per ton mile. A pressure was brought to bear on the operating managements, which led to their reducing the cost .021 cents, so that the decrease in the net was but .025 cents. In the following year, 1892, the traffic managers maintained rates at the low level reached the previous year and indeed slightly increased them by .003 cents ; the operating man- agements also made a slight decrease, and the net result was an increase of .004 cents. Small as this was it led to an increase of 10 per cent, or nearly $26,000,000 in net freight earnings in 1892 over the previous year. The fol- lowing year rates were again cut .0^0 cents ; the operating 112 AMERICAN RAILWAY MANAGEMENT. managements responded by a reduction of .003 cents in the cost, but the net rate fell off .017 cents ; the result being, that with an increase in ton-mileage of over 5,000 million miles the net earnings showed an increase of less than a million dollars, against an increase of nearly $26,000,000 in the net earnings of 1892. So far as it is practicable to extend this investigation into the operations of 1894, as obtained from the preliminary report for that year, the following results are obtained : Ton Mileage. Freight Earnings. 1893 84,968,987.747 $746,027,712 1894 70,426,344,965 609,890,147 Decrease 14,542,642,782 $136,137,565 Per cent 17 18 These figures are based upon 149,559 miles of the same roads in 1894 as in 1893, being about 24,000 miles less than the total mileage of 1894. The rate per ton-mile in 1893 was. 878 cents And the cost per ton-mile was 579 * ' Net revenue per ton-mile 299 cents The rate per ton-mile in 1894 was 866 cents Assuming the cost per ton-mile, which is not given, as the same as in 1893, viz 579 " Net revenue per ton-mile 287 cents Applying this net revenue per ton mile to the ton mileage as above given, the results obtained as to total net earnings are as follows : Net freight earnings 1893 $253,617,273 Net freight earnings 1894 202,123,610 Decrease (20 per cent.) $51,493,663 Thus it is seen that on the same 149,559 miles com- pared in these two years there was a decrease in 1894 of 17 per cent, in the volume of freight traffic, and of 18 per ADDRESSES, AMERICAN RAILWAY ASSOCIATION^. 113 cent, in the gross and of 20 per cent, in the net income therefrom as compared with 1893. In the report it is estimated that 15 per cent, should be added to the figures for 1894, to ascertain the true volume of traffic for the entire mileage operated during that year. On this basis, the net freight earnings on The entire mileage in 1894 would be $232,470,000 And in 1893 on the entire mileage they were 279,828,454 Estimated decrease (17 per cent.) $47,358,454 Compare now the changes in net earnings from freight traffic on the entire mileage of the country for the past three years : 1892. Increase $25,891,512 10 per cent. 1893 Increase 986,736 03 " 1894. Estimated decrease. 47,358.454 17 " Surely it is not an incorrect figure of speech to say that the tide which has been flowing without change for all t*hese years has been suddenly reversed ; that, as if from some great catastrophe, the stream is flowing toward its source. But why dwell on these figures ? To seek by reiter- ation to impress upon the minds of those who are respon- sible for the management of the railroads in this country, that farther reduction in freight rates must cease if net earnings are to be maintained. The statistics for 1892 and 1893 showed that it was not possible to extend favors of this kind any longer to the public without still farther reduction in the wages of railroad employees. The figures now given for 1894 manifest such a decrease in the volume of traffic as to indicate that even at present rates such a reduction is imminent unless some great discovery shall render it possible to bring about a decrease in other items of expense, such as for instance followed upon the pro- duction of Bessemer steel. Railroad stockholders and bondholders should entirely oppose further reductions in freight rates. That their 114 AMERICAN" RAILWAY MANAGEMENT. interests will be seriously and unfavorably affected unless this be stopped may readily be shown. The traffic statistics of the Inter-State Commerce Com- mission here referred to are based upon the following road mileage, which is less than the actual mileage of tlie country : In 1889.. 153,385 lu 1893 . . 169,779 Increase over 1889. . 9 per cent. lu 1894.. (est.)173, 000 Increase over 1893. .3 Let us see to what extent the increase in freight traffic and freight earnings has justified the increased road mileage as given above, using for this purpose a compari- son per mile of road. Per Mile. J889. 1893. 1894 (est.) Ton mileage 448,069 551,232 468.200 Gross freight earnings.. $4,131 $4,840 |4,054 Net freight earnings 1,474 1,648 1,343 Erom this comparison it would seem that from 1889 to 1893 the amount of traffic and the net returns more than kept pace with the increased road mileage. But we must consider that the ratio of net revenue has been maintained by economies which cannot be materially augmented un- less relief can be obtained from some new source. Those who are responsible for the cost of operation should insist that there shall be no further reduction in rates. The estimated results for 1894 re-enforce this demand — for they show that the results for that year are worse than for any year since these statistics have been compiled. The relation of net earnings to capital invested in rail- road property has an important bearing on this matter of freight rates. When we compare the investment in 1889 and 1893 we find the following results : stock. Bonds. Total. 1889 $4,251,190,719 $4,267,527,859 $8,518,718,578 1893 4,630,457,481 5,266,318,961 9,896.776,443 Increase... $379,266,762 $998,791,102 $1,378,057,864 Percent,, 8.9 33.4 16.3 ADDKESSES, AMERICAN RAILWAY ASSOCIATION. 115 INVESTMENT PER MILE OF ROAD. Stock Bonds. Total. 1889 $27,716 |27,822 |55,538 1893 28,714 32,657 61,371 Increase $998 $4,835 $5,833 The net freight earnings per mile of road amounted in 1889 to 2.6 per cent, on the total investment and to 2.7 per cent, in 1893. And if applied only to the bonded debt they would have paid 5.3 per cent, in 1889 and 5.1 per cent, in 1893. Leaving for the present the subject of freight traffic, a somewhat similar analysis is here presented of the pas- senger traffic for the same period. CENTS PER PASSENGER MILE. Revenue. Cost. Net. 1889 2.165 1.993 .172 1890 2167 1.917 .250 1891 2.142 1.910 .232 1892 2.126 1.939 .187 1893 2,108 1.955 .153 1894 1.976 The changes in these figures from year to year have been as follows : CENTS PER PASSENGER MILE. Revenue. Cost. Net. 1890 Inc. .002 Dec. .076 Inc. .078 1891 Dec. .025 " .007 Dec. .018 1892 " .016 Inc. .029 " .045 1893 " .018 " .016 " .034 1894 " .132 The slight increase in gross revenue in 1890 was suc- ceeded by a uniform decrease in the following years until the great decrease in 1894, the Columbian Exhibition year. The remarkable decrease in cost in 1890 was fol- lowed by a further slight decrease in 1891, and by a con- siderable increase in each of the following years. The ef- fect of these fluctuations has been a continuing decrease ill the annual net rate. 116 AMERICAN" RAILWAY MANAGEMENT. Comparing 1889 with 1893 the resulting changes have been : CENTS PER PASSENGER MILiE. 1889. 1893. Dec. Per Cent. Revenue 2.165 2.108 0.057 2 Cost 1.993 1.955 0.038 2 Net 0.173 0.153 0.019 10 Here again, as with the freight rate, more has been given away than has been saved in cost, for while the rate has been reduced .057 cents per mile, the reduction in cost has been but .038 cents per mile ; a gift to the traveling public of .019 cents per mile more than the saving in cost. Now if we compare the percentage of reduction in these five years in the rate and cost per mile in passenger traffic, with the rate and cost per ton mile in freight traffic, the relative reduction is seen to be as follows : Reduction iu Rate. Cost. Freight per ton mile 12 per cent. 8 per cent. Passengers per passenger mile 2 " 2 " These figures show that the rates on passenger traffic have been much better maintained than on freight traffic, while the cost of the service in the former has been by no means so greatly reduced as in the latter. Let us now compare the annual changes in the volume of passenger traffic : ANNUAL PASSENGER TRAFFIC. Passenprer Miles. Increase. Per Cent. 1889 11 553 820 445 1890 11.847.785,617 293,965,172 2.5 1891 12,844,243,881 996,458,264 8.4 1892 13,362,898,299 518,654,418 4.^ 1893 14,229,101,084 866.202.785 6.4 Average annual increase, 5.3 per cent. The preliminary report for 1894 affords the following comparison with the figures for 1893 : 1894. Passenger miles on 149,559 miles. 12.899,936,578 1893. Passenger miles on same roads. . 12,873,272,594 Increase (.2 of one per cent.) ^6,663,984 ADDRESSES, AMERICAN RAILWAY ASSOCIATION. 117 This result is indeed disappointing, since its includes in 1891 the travel due to the Columbian Exhibition. ANNUAL PASSENGER EARNINGS. Gross Earnings. Increase, Per Cent. 1889 $250,140,212 1890 256,741,514 $6,601,302 2.6 1891 275,123,703 18,382,189 7.1 1892 284,095,217 8,971,514 3.2 1893 299,949,450 15,854,233 5.5 The average annual increase in gross passenger earnings has been 4.6 per cent, against an increase of 5,3 per cent, in the volume of traffic. An irregularity in the rate of annual increase of earn- ings is to be observed as in the case of gross freight earn- ings : AVERAGE ANNUAL INCREASE IN GROSS FREIGHT AND PASSENGER EARNINGS. Freight Earnings. Passenger Earnings. 1890 Increase 8 per cent. 2.6 per cent 1891 " 1.2 " 7.1 1892 " 9 " 3.2 " 1893 '• 3.7 " 5.5 " The heavy increase in both freight and passenger earn- ings occurred in alternate years, but as between the two it did not fall in the same years. On the figures in the preliminary report for 1894 the gross earnings on the mileage therein reported amounted to $254,902,746 ; and on same mileage in 1893, $271,368,- 586 ; decrease (6 per cent.), $16,465,840. Here again, as with the freight traffic, an actual de- crease is shown for the first time in the Inter-State Com- merce Commission Reports, and that, too, in the Co- lumbian Exposition year ! The total increase in passenger traffic and gross earnings from 1889 to 1893 was as follows : Passenger Miles. Gross Earnings. 1889 11,553,820,445 $250,140,212 1893 14,229,101,084 299,949,450 Increase 2,675,280,639 $49,809,238 Percent 23 20 118 AMERICAN RAILWAY MAN^AGEMENT. The annual net passenger earnings in each of these five years were as follows : Net Earnings. Increase. Per Cent. 1889 $19,872,571 1890 29,619,640 $9,747,069 4.9 1891..., 29,798,645 179,005 6 1892 24,988,619 (dec.) 4,810,026 (dec 16.1 1893 21,770,524 (dec.) 3,218,095 (dec.) 12.9 The net earnings in 1893 were about $8,000,000 less than in 1891, and but 2,000,000 more than in 1889, although the gross earnings were 20 per cent, greater. So far as we may draw an inference from the prelim- inary report for 1894 we may estimate the net passenger earnings for that year about as follows : On the road mileage reported there was an increase of .2 of one i^er cent, in passenger traffic over the preceding year. With the average rate per passenger mile as stated the resulting gross earnings on that traffic showed a decrease of about 6 per cent. The average rate per mile was given at 1.976 cents Iq 1893 the average cost per mile was 1.955 " On this basis the net rate per mile would be .021 cents The road mileage reported was said to be about 86 per cent, of the total, and on this basis the total net earnings from passage in this country in 1894 may be estimated not to exceed $3,150,000, as against $21,000,000 in 1893. Of course, if the average cost per passenger mile for per- forming the service has been diminished in 1894, then this estimate of net earnings is too low, but there is nothing in the statistics of the past six years to lead us to hope for any better result. The causes of this discouraging exhibit are indicated in the following comparison of the percentages of increase or decrease annually in passenger mileage and in gross and net passenger earnings : ADDRESSES, AMERICAH^ RAILWAY ASSOCIATION". 119 Passenger Miles. Gross Earnings. Net Earnings. Increase. Increase. Increase. 1889 . . 1890.. ..2.5 per cent. 2.6 per cent. 4.9 per cent. 1891.. ..8.4 " 7.1 " 0.6 " 1892. . . . 4.0 " 3.2 " (dec.) 16.1 " 1893.. .. 6.4 " 5.5 " (dec.) 12.9 " Although the annual increase in gross earnings nearly- kept pace with the increase in passenger mileage, the net earnings went to pieces because the cost of performance, so far from being reduced proportionately to the decrease in the rate, actually showed an increase. AVERAGE COST PER PASSENGER MILE IN CENTS. 1889. 1890. 1891. 1892. 1893. 1.993 1.917 1.910 1.939 1.955 A reduction of .083 cents from 1889 to 1891 was fol- lowed by an increase of .045 cents from 1891 to 1893, leav- ing the cost in 1893 but .038 cents less than in 1889, though the rate per mile had been reduced .057 cents during that period. These apparently minute changes are more impressive when applied to the total volume of traffic. I therefore compare the traffic of 1893 with that of 1891, in which year the largest net earnings were reported from pas- senger traffic during the period under consideration. Passppger Miles. Gi'os«! Earnings. C'tst. Net. 1891.. 12.844,243,881 $275,123,703 $245,325,058 $29,798,645 1893.. 14,229,101,084 299,949,450 278,178,926 21.770,524 Inc.. 1,384,857,203 $24,825,747 $32,853,868 Dec.$8,028,121 It took 82 per cent, of the gross earnings from passen- ger traffic to perform the service in 1891, and 90 per cent, in 1893, although the gross earnings were 9 per cent, more in the latter than in the former year. The operating managements have been apparently un- able to do for the passenger service what they did for the freight service ; that is, to reduce the cost somewhat as the rate was reduced. For this I shall offer an explanation 120 AMERICAN- RAILWAY MANAGEMENT. hereafter, but will first call attention to the relation which the passenger traffic in this country bears to the road mileage and to the capital invested in railroad property. PASSENGER TRAFFIC PER MILE OP ROAD. 1889. 1893. 1894 (est). Passenger miles 75, 325 83, 809 85, 751 Gross earnings $1,630 $1,766 $1,694 Net earnings 129 128 18 The net passenger revenue per mile of road amounted in 1889 to .23 of one per cent, on the capital invested, and in 1893 to .20 of one per cent. As estimated for 1894, it was too small to be considered. The relative contribution per mile of road as made respectively by the gross and net earnings from freight and passenger business in 1893, was as follows : Gross. Net. Gross. Net. Freight $4,656 $1,585 73 per cent. 93 per cent. Passenger.. 1,699 129 27 " " " Total.. $6,355 $1,714 According to these statistics, the proportionate contri- bution to net revenue from passenger traffic scarcely de- serves attention, and when the total earnings are given the comparison is yet more impressive. TOTAL EARNINGS FROM FREIGHT AND PASSENGER TRAFFIC IN 1893. Gross Per Cent. Net. Per Cent. Freight... $821,703,622 73 $279,828,454 93 Passenger. 299,949,450 27 21,770,524 7 Total. $1,121,653,072 $301,598,978 Having thus analyzed the traffic statistics of the rail- way system of this country for the past five years, let us now endeavor with these figures to assign to the respective managements of the traffic department and of the oper- ating department the responsibility as to results. First, as to freight traffic, we find the results to be as follows ; ADDKESSES, AMERICAN RAILWAY ASSOCIATION. 12 L CENTS PER TON MILE. Rate. Cost. Net. 1889 922 .593 .329 1893 878 .579 .299 Decrease 044 .014 .080 The question for the traffic managements to answer is whether they were justified in reducing the rates so much faster than the operating managements reduced the cost, as to reduce the net rate nearly ten per cent. The question for the operating managements to answer is whether they could not have made a greater reduction than two or three per cent, in the cost of handling freight traffic in these five years. The Inter-State Commerce Commission has given us figures intended to throw some light on this latter question. From the " Comparative Summary of Expenditures and Analysis of Operating Expenses " for 1889 and 1893, I have taken the proportion indicated as chargeable to freight traffic and applied the ton-mile basis with the fol- lowing results : COST IN CENTS PER TON MILE IN 1889 AND 1893. 1889. 189:^. Inc. Dec. Per Cent. Maintenance way lo74 .1196 0178 13 Maiutemince equipment 1007 .0968 0089 4 Conducting transportation . .3139 .3080 0059 2 General expenses 0574 .0583 .0009 2 Total 6094 .5827 .0267 As given in body of report. .593 .579 .014 Excess 0164 .0037 .0127 It will be seen that the cost per ton mile as figured from the " Comparative Summary " is in both years in excess of the cost as stated in the body of the report, but this does not affect the value of the above comparison in seeking for the particular classes of expenditures in which the cost of performance has varied in the two years under consider- ation. 122 AMERICAN RAILWAY MAKAOEMENT. We see that the greater part of the reduction has been in maintenance of way, which fell off 13 per cent. This may be accounted for to a great extent by the substantially complete replacement of iron rail by steel. The cost of conducting transportation, which constitutes over one half of the total cost per ton mile, shows but a slight reduction. This item includes the wages of train- men, agents and freight handlers, the great body of railroad men proper. It is the item in which must be hereafter sought any considerable reduction in the cost of operation, and as materials and supplies enter very little into con- ducting transportation this means a reduction in wages. View this subject as we may, there is no escaping this con- clusion ; if the present average cost per ton mile is too high, it can not be materially reduced except by a general reduction in the wages of men whose services are classified under the head of conducting transportation. It is also to be noted that only in the item of general ex- penses does the cost per ton mile show an absolute increase. Under the classification of expenses adopted by the Inter- State Commerce Commission this item is apparently the residuum which remains after the other three items have been sej^arated from the total cost of operations. It is therefore difficult to determine just what kind of expense it is that shows this disproportionate increase. It is true that the whole item of general expenses constitutes but about nine per cent, of the total cost per ton mile ; still, small as it is, it needs investigation. There is very little in this analysis on which to base an accusation of extravagance against the operating man- agements in their handling of the freight traffic. It may be remarked, however, that the principal source of reduced cost in the past four years has been in maintenance of way, and if this be due to the general substitution of steel for iron rails there is but little further help to be expected in this direction. ADDRESSES, AMERtCAir RAILWAY ASSOCIATION. 123 Viewed in another way the operating managements do not escape niifavorable criticism as to handling freight traffic, that is, on the train mile basis. BEVENUE AND COST PER FREIGHT TRAIN MILE. 1889. 1893. Kevenue $1,653 $1,627 Cost 1.064 1.067 Net 589 .560 It is rather a surprise to find after the introduction into general use of cars of twenty and even of thirt}" tons burthen and of locomotives of increased tractive power, that not only has the revenue per train mile decreased but that the cost has increased. The probable cause is a still greater surprise, for when we seek to ascertain the average train load in 1889 we find it was 179 tons Andiu 1893 184 '* Increase in average train load 5 tons That the average train load should not be more than about nine cars of twenty tons capacity and that all the investments in improved equipment in four years should yield no better results, is a matter which rests with the operating managements. Upon investigation it will be found that empty car mileage has much to do with it. Still with empty car mileage equal to the loaded mileage we can account for but eighteen cars in a train, which is much below the average train load possible with modern equipment. Another point to remark upon in passing is that the average haul has also decreased. In 1889 the average haul was 127.36 miles ; and in 1893, 125.6 miles. We have now to make a similar analysis of the items of cost per passenger mile : 124 AMEKICAN" RAILWAY MAKAGEMENT. COST IN CENTS PER PASSENGER MILE, 1889 AND 1893. 1889. 1893. Inc. Dec. Per Cent. Maintenance way 0.438 0.403 0.035 8 Maintenance equipment 0.321 0.325 0.004 1 Conducting transportation.. 1.001 1.035 0.034 3 General expenses 0. 183 0. 218 0.035 19 Total 1.943 1.981 0.038 As given in body of report. 1.993 1.955 0.038 Less 0.050 In excess 0.026 The figures in the body of the report show that the cost per passenger mile decreased .038 of a cent from 1889 to 1893, but the figures in the " Comparative Summary " show that the cost has increased just that amount during that period. This difference of .076 of a cent only affects the conclusions already reached as to the vanishing profit on passenger traffic by making the situation so much the worse. For the purpose now in view, viz., to ascertain in what class of operating expenses the cost per passenger mile has varied in this period of five years, we are com- pelled to use the analysis given in the " Comparative Sum- mary," and to our surprise we find that in every item ex- cept in maintenance of way there has been a comparative increase — very slight in maintenance of equipment, but marked in conducting transportation and general expenses. Permit m^ now to return to the opinions which I have already expressed as to the different tendencies of our traffic managements respecting freight and passenger busi- ness — viz., to reduce the rate per ton mile, but to maintain the rate per passenger mile. From the figures given with regard to the cost per passenger mile, we are led to the conclusion that the competition as to passenger traffic has taken the direction of better service, faster and more numerous trains, additional sleepers and dining cars. The cost and revenue per passenger train mile are given as follows : ADDRESSES, AMERICAI?" RAILWAY ASSOCIATION. 125 PER TRAIN MILE. 1889. 1893. Increase. Decrease. Revenue $1.06.287 $1.06.819 0.00.532 Cost 83.068 .82.948 0.00.120 Net 23.219 .23.871 0.00.652 1893. Inc. Dec. 17.05 1.19 13 80 0.36 43.92 2.28 9.22 1.56 .07 .... 0.11 The average profit per passenger train mile has in- creased but .6 of one cent in five years, while the average number of passengers per train remain at 42 in 1893 as in 1889, and the average haul of each passenger has fallen from 24.47 miles to 23.79 miles. The following comparative analysis of the proportion of expenses chargeable to passenger service is taken from the " Competitive Summary " on the train mile basis in- stead of the cost per passenger mile. COMPARATIVE COST PER PASSENGER TRAIN MILE IN CENTS. 1889. Maintenance way 18.24 Maintenance equipment 13.44 Conducting transportation. . . . 41.64 General expenses 7.66 Not classified 18 Total 81.16 84.04 2.90 These figures differ from the figures above quoted from the body of the report, as they show that the cost per train mile has increased in five years 2.9 cents, while in the body of the report the cost is stated to have slightly decreased. Taking the comparison for what it may be worth, we see that there has been a marked increase per train mile in conducting transportation and in general expenses. Here, again, if any material reduction is to be made it must be in wages. However the statistics in these reports may be analyzed and applied, so far as they are capable of practical ap- plication to the future management of the railroad system of this country, the unvarying conclusion as to freight traffic is that the average railroad, in point of revenue, cannot remain solvent with any further reduction in the 126 AMERICAN" RAILWAY MANAGEMENT. rate per ton mile. The average revenue per mile of road in 1893 from freight traffic was less than $5,000 per mile, and the average rate per ton mile was .878 cent. The pressure to reduce rates is applied from two direc- tions : on local traffic, from State railroad commissions, where they control rates, and on competitive traffic, from unregulated competition. Unwelcome and irrational as may be the exercise of the rate-making power by State commissions, the evil effect upon the welfare of our rail- road system from this cause is not to be compared with the injury growing out of the denial of the right to make con- tracts for the division of competitive traffic. As well throw a piece of meat into a dog-kennel and expect it to be divided fairly according to the needs of each inmate as to expect rates on competitive traffic to be uniform as between shippers similarly situated. In either case an external power must be invoked if justice is to be done. It is for the protection of the smaller shippers and for the weaker railroad companies that contracts for main- tenance of rates by division of revenue should be legalized, and that the offending railroad managements should be amenable in the courts for the injury occasioned by their disregard of their plighted faith. When this is done secret rebates will cease, because there will be no longer any ad- vantage in granting them and the corrupting influences which with unrestricted sompetition pervade our railroad corporations will be greatly diminished in virulence. The difficulties in the regulation of passenger traffic are of a different character. They arise mainly from the ex- travagance which is general in the conduct of the service. Luxuries in the way of sleeping cars and dining cars are provided where the revenue from the passengers so ac- commodated does not justify the railroad companies in furnishing them, and the passenger who rides at night in the day coach and snatches his food from a lunch counter pays out of proportion for what he gets. The remedy lies in reducing competitive tr^in service ADDRESSES, AMEEICAN RAILWAY ASSOCIATION. 127 and by so doing to increase the revenue per train mile. It is not the increased ratj per passenger mile that adds to the net revenue of a railroad company, but the increased returns per train mile. The average gross revenue from passenger traffic per mile of road in 1893 was about $1,800, and per train mile about $1.06, and on many roads where the average is far be- low these figures the sleeping car service and the frequency and speed of passenger trains will be found to be governed rather by competitive zeal than by the net revenue per train mile. The lavish distribution of free passes is also an abuse which results in a loss of net revenue that might readily be secured by joint action on the part of our rail- road managements, but no single management can cope with it. The investigation of the cost of the services rendered by the railroads as compared with the compensation re- ceived is necessarily an uninviting task. It leads one through pages of statistics frequently to find after labori- ous analysis that the facts are so stated as to be incapable of practical application. And even when conclusions are reached which appear to be well founded they are at last but averages which each one of us may look upon as inapplicable to the particular conditions under which his own road is operated. Still I believe that no person interested in our railroad system, either as owner or man- ager can follow the figures and reasoning contained in this address without agreeing with me that there is no margin for further reduction in freight rates, and that the passenger traffic is at present being conducted without profit as a whole to our railroad system. 128 AMERICAN RAILWAY MANAGEMENT. EAILEOAD ORGANIZATION". (October 16, 1895, at Hotel Brunswick, New York.) Order is Heaven's first law ! This is as true of human organization as of divine. Without order confusion fol- lows and inefficiency. The more complicated and exten- sive the organization the more essential is orderly method. This is the test to be applied to any method of organi- zation. Does it secure for the end proposed the greatest efficiency at the least cost ? AVith this test in mind, let us consider the principles essential to an efficient railroad organization. A railroad corporation is divisahle into two parts ; that Avhich it has in common with other corporations, and that which is peculiar to the operations of a railroad. To the corporate part belongs the corporate business of the company, as also its financial and legal affairs. It therefore includes the offices of the president, direct- ors, secretary, treasurer, auditor and legal counsel. The railroad organization proper has to be considered with reference to the end for which the corporation has been formed ; the transportation of persons and things by rail with safety and dispatch. To the extent that this purpose is attained the organization is efficient. In whatever respect that purpose is not attained, in that respect the organization is defective. A fundamental requisite of an efficient organization is that there shall be a clearly defined division of re- sponsibility among the several officials and employees who carry on the operations for which it is formed. This di- vision of responsibility naturally follows the line of separation between the duties to be performed. These duties in a railroad organization are readily separable - ^ OF THB ADDRESSES, AMERICAN RAILWAY ASSOCIATIOll TD1S9[VERS into certain general departments, which may be brielf^ described as follows : First, as relating to the roadway. Second, as relating to the vehicles passing over the road- way. Third, as relating to the persons and things transported in those vehicles. There are therefore three, and only three, grand divi- sions of railroad operation. There may be other duties and operations incidental to the main purposes of rail- road transportation, but, whatever they may be, they are referable to one of those three divisions or departments. This classification is simple and should be rigidly adhered to if a clearly understood division of responsibility is to be kept in view. It does not include the collection of revenue, as that is not an essential element of railroad transporta- tion, but belongs to the corporate administration, and as a matter of railroad organization should be considered apart from the departments pertaining strictly to the trans- portation of persons and things. Taking these departments one by one and beginning with that relating to the roadway, it should include the construction and maintenance of everything that is part of the roadbed and of the real estate belonging to the com- pany, or which is permanently attached to either ; as tracks, fences, water stations, shops and all other struc- tures. Permanent train signals should also be included. Not that the officials of the roadway department should determine the character of such signals, but that, after this has been determined, they should be responsible for the condition in which such signals are maintained. The next department relates to vehicles passing over the roadway and includes the construction and mainten- ance of locomotives and cars of all kinds ; as also of all tools and appliances used for such purposes, but not the control of the men employed in train service. The line of diYJsioii here should be at the engine house. Engine- 130 AMERICAN llAILWAY MANAGEMENT. men and firemen are not responsible for the construction or maintenance of locomotives any more than conductors and brakemen are for the condition of cars, and therefore neither class of trainmen can be properly classified in the rolling stock or machinery department. The third department relates to the persons and things transported. It is the transportation department proper for which the other departments exist, and which are in fact auxiliary to it. It includes all persons employed in receiving, caring for, transporting and delivering the persons and things intrusted to the railroad company for transportation. These then are the three departments of a railroad, the roadway, the machinery and the transportation depart- ments. To be efficient each should be under a single head, and cM should be under one managing officer, himself re- sponsible to the corporation. In this division of railroad operations nothing has been said about what is known as the traffic department, and for the reason that the department known by that name in this country has no proper sphere of action so far as (the railroad is concerned. It properly belongs to tlio revenue department of the corporation. For the making of tariffs and the collection of revenue are matters which affect the" welfare of the corporation, but have nothing to do with the transportation of persons and things with safety and dispatch, and it is only when the two purposes coincide that there can be any doubt as to where the line of responsibility should be drawn between the persons having the matters in hand. In handling freight, the persons who receive, load, transport, unload and deliver, clearly belong to the trans- portation department, while those who affix the rates to the billing and those who collect the charges do not. The latter belong to the revenue department of the corporation, and have no more to do with transportation than the man who fixes the price for a barrel of flour or who collects ADDRESSES, AMERICAN RAILWAY ASSOOIATIOl^. 131 the money when it is sold, has to do with growing the wheat or milling the grain from which the flour is made. The same is true of passenger traffic. The man who sells the tickets has nothing to do with the transportation of passengers, and if the tickets, when sold, were not col- lected on the train, the train men would in no way be connected with the revenue department of the corporation. Inviting business, either by advertisements or by per- sonal solicitation, is also a matter entirely foreign to the management of a railroad, for it is something which af- fects revenue but not transportation. The traffic department, as we know it, might therefore be separated entirely from the railroad organization and be absorbed into the corporate management, without detri- ment to the safe and prompt transportation of persons and things, and very probably to the advantage oi* the corporation. For the proper conduct of the operations of a railroad as a means of transportation, the manager, with his sub-, ordinates, should be responsible to the corporation, and for the making of tariffs, the solicitation of business and the collection of revenue, the traffic manager should be responsible. There is yet to be considered the purchase, storage and distribution of materials and supplies. It would seem that the purchasing belongs to the corporate management, and the caring for and the distribution of supplies to the railroad management proper. This division of responsi- bility can be adv.'>.ntageously made where there are suitable methods for making requisitions, specifications and tests. And now to a more detailed consideration of the organi- zation in each department. There is no doubt that the roadway department should have at its head a civil en- gineer experienced in railroad work. The operations under him readily fall into certain sub-divisions ; as the maintenance of roadbed and track, for one thing, of 132 AMERICAiq" RAILWAY MANAGEMENT. ' bridges, of buildings, of signal apparatus, of pumping ma- chinery, etc. The track should be maintained in sections of no less length than would require the attention of a gang suffi- cient to handle a rail or a hand-car readily, nor should it be so long that the foreman cannot properly inspect his entire section daily on a velocipede and still look after his gang. The track section is thus the unit on which the opera- tions of the roadway department are based, and the num- ber of sections to be placed under the supervision of one roadmaster should be limited by his ability to pass over a certain track mileage for purposes of inspection in a single day. As a general thing it will be found that a roadmaster or supervisor cannot properly look after more than one hundred miles of track. Besides the usual section gangs, he will require a bridge gang for the repairs of ordinary trestle bridges, a house carpenter gang for re- pairs of buildings, a man to care for water station machin- ery, plumbing, etc., and perhaps another to keep the signal appliances in order. The inspection and maintenance of the more important structures, including bridges, should be directly under the head of the roadway department and should be in charge of a competent engineer, to whom the inspection of all bridges should be assigned. This inspection should be personal and without reference to the roadmaster or his men. The organization then of the roadway department should consist of an engineer of maintenance of way with one or more assistant engineers reporting directly to him, as also one or more road masters responsible for the section gangs in charge of track and the forces necessary for the maintenance of buildings, bridges, fuel and water stations and permanent signal apparatus. To the roadway de- partment should be assigned the care of shop buildings and engine bouses as well ag of any other structures, for it ADDRESSES, AMERICAK RAILWAY ASSOClATlOK. 133 does not follow that a good machinist is a good house carpenter, and it is more economical to have all inspection and repairs of buildings under one head than to have that responsibility divided. We next come to the department in charge of the construction and maintenance of locomotives and cars — briefly termed the machinery department — and which is readily divisible into the locomotive department and the car department. On some roads each of these departments may be in charge of a foreman. On others the shops may be so extensive as to justify a more radical separation of the two under a master machinist for the one and a master car builder for the other, but the whole department should be under the control of a competent mechanical engineer, to be styled the mechanical superintendent. This department should not control the employment of enginemen, firemen, wipers, or car cleaners, for this class of men belongs to train service and not to mainten- ance. This is also true of the storage and issuing of fuel for locomotives, which is not necessarily connected with shop work and is more or less distributed along the road. Where there are several division shops, the principal repairs or reconstruction of rolling stock should be con- centrated at one of them, for special tools can thus be more profitably employed, and also a better class of draughts- men and mechanical engineers than if such work were scattered among all the shops on the road. Designs, plans, specifications and contracts for new work should be prepared in the office of the mechanical superintendent, and if locomotives or cars are built by the company to any considerable extent, the shops for this work should also be directly under his supervision. The organization of the machinery department would then comprise a mechanical superintendent, assisted by a master machinist in charge of the locomotive depart- ment and a master car builder in charge of the car de- partment, with foremen in charge of the several division 134 AMERICAN" RAILWAY MANAGEMENT. shops and a competent mechanical engineer in charge of the principal shop in which all new work and recon- struction is carried on. There will also be required the services of a general storekeeper. Next in order is the transportation department, to which is assigned the work for which the track and the rolling stock have been built and are maintained. The manner in which its operations are conducted is the test as to whether persons and things are transported over the railroad with safety and dispatch, and upon the manner of its organi- zation is largely dependent the success of the corporation. The head of this department should control all the in- strumentalities essential to transportation from the time that a person or thing comes under the care of the cor- poration until they pass out of it. Such a control would cover all responsibility in that connection not already as- signed to the roadway and machinery departments, and would exclude the making of tariffs, the solicitation of business, the collection of revenue, and the purchasing of materials and supplies. It would include the station and yard service, the cleaning and handling of engines and cars, the movement of trains, the receiving, loading and bill- ing, unloading and delivery of freight, etc. The units of service are the station force and the train crew, and this is broadly the division of responsibility in transportation service. Until a train has been made up both the vehicles and the objects to be transported are under the control of the station forces. But when the vehicles have been as- sembled into a train, the control of train and contents is necessarily of a different character until the service has been performed and the train disintegrated. It would seem then that the superintendent of trans- portation should be assisted by a chief in each branch of service — a chief of station service and a chief of train ser- vice. Under the former should be placed station masters and agents with their subordinate clerks, porters and laborers and yard masters with their switching crews, ADDRESSES, AMERtCAlt RAILWAY ASSOCIATION^. 135 while the latter should control the trainmen, telegraph operators and signal men. Such a classification clearly defines the responsibility for each kind of service. Sep- arate provision, of course, should be made for conducting other service incidental to transportation, but which is neither station nor train service. It is not so easy to define the lines of division between the traffic and the transportation departments, still they . impinge on each other at but few points. A ticket seller in a station building holds a divided allegiance, but one in a city office does not. In fact, so far as the station ticket bureau is a bureau of information it belongs to the transportation department proper, but so far as it is an office for the collection of passage fares it does not. It is also true of a passenger train conductor that in the col- lection of fares and the inspection of tickets he is respon- sible to the revenue department. Baggage masters at stations occupy a similar relation to the revenue depart- ment in the collection of baggage charges and inspection of tickets before checking. In handling freight the trans- portation department first comes in touch with the rev- enue department when the freight has been billed and the charges are to be affixed, and again for the collection of charges when the articles are delivered. Very little thought, however, is req lired to dispose of this dual re- sponsibility in a satisfactory manner. There is a broader view to be taken of railroad organi- zation where the service is extended over a long line or over many branches. Here the responsibility must not only be divided by departments but also by territorial districts or divisions. The main issue to be determined is whether the de- partmental responsibility shall continue through directly to the head of the department regardless of the territorial division, or whether it shall be concentrated in each of these divisions before reaching the head of each depart- ment. The same question has been agitated as to army 136 AMERICAN RAILWAY MANAGEMENT. organization ; that is, whether a division or army corps should be treated as a unit in itself or as part of a greater unit, the army. Indeed it has been carried farther yet, to the point that whether in an army there should be certain departments not directly responsible to the commanding officer but to certain chiefs of bureaus of administration. The proper test to be applied is still that of the great- est efficiency at the least cost, and this again involves the placing of responsibility where it cannot be shifted in case of failure or neglect. That for which a man is to be held responsible that he should control and all the instru- mentalities essential to that control. To the extent to which a division or corps commander is expected to act independently, to that extent his authority should con- trol. To whatever degree the operations in his sphere of authority are to be co-ordinated with operations out- side of that sphere, to that degree he cannot act in- dependently and co-ordination be secured. Applying this principle to railroad management, it would seem best to give free rein to a division superin- tendent up to that point where it is essential to the wel- fare of the transportation system as a whole, that his course should be brought in accord with the course of other officials outside of his sphere of action. His sphere of action is his division of the road, and within that di- vision there should be no divided authority covering the transportation of persons or things with safety and dis- patch. But for this to be successfully accomplished the operations upon his own division must be in certain re- spects co-ordinated with the operations upon other di- visions of the road. Here come into play the general rules for the movement of trains and the regulation of the conduct of employees, the preparation and observance of through time-tables and of mechanical standards. His authority upon his division is exercised subject to those restrictions which must necessarily be prescribed by an authority superior* to his own. In these respects, then, ADDRESSES, AMeRICAK RAILWAY ASSOClATlOlT. 137 his responsibility does not extend beyond the observance of such restrictions. There is yet another phase of this territorial responsibility which involves the divided al- legiance of department employees to the division superin- tendent and to the department chief. It does not arise so much in the transportation department — that is, in station service or train service — for employees in such service can only reach their department chief, the general superintendent of transportation, through the division superintendent. But it does arise in connection with the roadway and machinery departments. Shall the division superintendent be entirely relieved from responsibility as to the condition of track or equip- ment ? This question is in some respects answered by asking another. Will the efficiency of the service be diminished in any way if he be so relieved ? All railroad operations may be considered in one of two ways, either theoretically or practically. Territori- ally, these points of view coincide in the position occupied by the division superintendent. Now, shall there also be for each territorial division a division superintendent of roadway and one of equipment, respectively reporting to the chief engineer and to the mechanical superintendent ? Or will not this multiplication of offices and the attendant division of responsibility be avoided by extending the authority of the division superintendent of transportation to some extent over the operation of the machinery and roadway departments within the limits of his division ? Plainly it will, if that authority be not extended beyond the limit of efficiency. My own experience leads me to believe that the ordi- nary roadway forces can very well be subjected to the au- thority of the division superintendent ; that the latter should conform to the regulations established by the chief engineer as to standards, but that the care of important structures should be directly under the chief engineer. The selection of frogs and switches and the responsibility 13t^ AMERICAN HAILWaY MAKAGEME^'T. for track supplies should also rest with the chief engineer, who should issue them on the requisition of the division superintendent;, so that the use of all kinds of material of different sizes and dimensions may be prevented and standards be preserved. The effect of this policy would be that the division superintendent would represent the chief engineer on his division just as he did the general superintendent of transportation, except in those matters requiring special technical training. The same policy may be pursued with reference to the mechanical department, though perhaps in a different way. A division superintendent can get over his own division much oftener than the mechanical superintendent can be expected to go, and if he be permitted to exercise a cer- tain degree of supervision over the shops in a practical way, he can form a pretty good opinion as to how the work is going on and to what particular work preference should be given. A good deal of work for the roadway depart- ment is done in these division shops, and here it is well that there should be no division of responsibility as to neglect or delay. The conclusion to which this reasoning brings us is that within the territorial authority of a division super- intendent all railroad operations should be under his supervision, except as to regulations, standards, impor- tant purchases and the inspection of important structures. The threads of authority thus gathered together in his hands should from that point tend to the three depart- ment heads, the chief engineer, the mechanical superin- tendent and the general superintendent of transportation, to be again brought together in the general manager's office. There are three men who make or mar the reputation of a railroad company with its patrons : the passenger train conductor, the station agent and the division super- intendent. Within the scope of his authority each of them should be put in a position to determine definitely ADDRESSES, AMERICAK RAILWAY ASSOClATIOK. 139 and promptly any matter that may be referred to him from persons having business with him. Further refer- ence to distant superior authority leads to delay and dis- satisfaction with the railroad company. With proper rules and regulations it is practicable to enable either a con- ductor or an agent to say yes or no promptly to any question that may be asked of him in the line of his duty. The relations of the division superintendent to the pub- lic are of a different character. To the people having business with the road he is the embodiment of the cor- poration. When they want anything they go to him for it, and if it is evident to them that he can answer nothing definitely, that matters of routine have to be re- ferred to a distance, for the endorsement of some superior official before a definite answer can be given, they not only chafe at the delay but they feel that an adverse de- cision is due to the fact that they have not been heard, that they have not had their day in court. For these reasons, therefore, the division superintendent should be entrusted with very considerable discretionary powers in dealing with the people among whom he lives and with whom he is in daily communication. Where this is done they feel that their interests are considered by the rail- road management. Where it is not done they repeat the trite sayings about corporations having no souls, and about gigantic monopolies, and are the ready prey of designing demagogues. By all means then the division superintendent should be held up to the public as the immediate authority in all matters of ordinary interest to them and should be invested with power corresponding to that position. It is a mistake to make of him nothins: more than a chief of train service, a mere link in an endless chain of officials propelled by motive power a thousand miles away. 140 AMERICA it Railway makagemekt. REVIEW OF THE WORK OF THE ASSOCIATION FOR TEN YEARS. INTERNATIONAL RAILWAY CONGRESS. INTRODUCTION OF AMERICAN METHODS ON FOREIGN RAILWAYS. (April 15, 1896, at Burnet House, Cincinnati, Ohio.) Ten years ago, in this very city of Cincinnati, the American Railway Association was formed by the consoli- dation of the General Time Convention with the Southern Railway Time Convention. In looking backward over this decade, what justification do w^e find for the existence of this Association ? To what extent has it fulfilled its object — "the development and solution of problems con- nected with railroad management in the mutual interest of the railroad companies of America " ? Had it accomplished nothing else than the general adoption of Standard Time, or the preparation of the Standard Code of Train Rules, or the adoption of the interchangeable type of automatic freight car coupler, or of the standard height of freight car draw-bar, or of the uniform location of hand-hold and grab irons, or the general recognition of car service associations, the development and solution of either one of these problems, all of which are due to this Association, would in itself have justified its existence. But the work which in the past it has accomplished is but an earnest of its possible usefulness in the future. Those who have observed its growth appreciate its adapt- ability to the broader fields of utility in the mutual interest of the railroad companies of America. It is not only available for co-operation among the railroad manage- ments themselves, but also as the means of communication between the American railway system as a whole and the ADDRESSES, AMERICAN RAILWAY ASSOCIATION". 141 American people as a whole on any matter affecting the practical management of railroads. This was forcibly illustrated by the service which the Association was able to render in the Congressional legis- lation which resulted in the Safety Appliance Act. The public interest which had been excited for the protection of railroad employees in coupling cars found vent in a vigorous demand for statutory measures that was recog- nized in the platforms of the two principal parties then about to engage in a contest for the election of a President of the United States. The Congressional Committees on Inter-State Commerce undertook to determine technical questions relating to safety appliances. Voluntary com- mittees of State railroad commissioners and of labor or- ganizations came to their assistance. Inventors, cranks, promoters and lobbyists played a part as well, until the opportunity was offered for the representatives of the American Eailway Association to appear before the Con- gressional committee to which the preparation of the bill had been entrusted. It is to the credit of the members of this committee that they recognized the character of the men that constituted this deputation. They recognized that they were thoughtful and well informed, experienced in the matter of which they spoke, and earnest in their desire to bring about a reform in the general use of railway appliances ; that they represented no cliques, no com- binations ; that they were influenced by no unworthy motives, but that they represented the American railway system as a whole, and were able and willing to indicate the proper solution of a problem beset with many diffi- culties. The committees listened to them patiently and with interest. They saw the way to relieve themselves from deciding matters of technical detail, of which they were ignorant, by referring them for determination to a body of acknowledged experts, the choice of the men who manage the practical affairs of the railways of this country, ^nd to-day you will find in the Railway Safety Appliance 142 AMERICAN RAILWAY MANAGEMENT. Act that to the American Eailway Association has been given the authority to designate the technical details con- tained in that act, which is now the law of the land. The way has thus been provided for determining similar details for future legislation, for where can be found a body of men better equipped to determine them, or whose conclusions would be more readily accepted by the Amer- ican people as embodying the most modern railway practice ? And recently the way has been also opened to even a broader field of usefulness for the American Eailway As- sociation. What was known in this country of the International Eailway Congress, which has for many years fulfilled a similar purpose across the Atlantic Ocean, until our own Association was represented in that body at the London meeting of 1895 ? A representative of some one of our principal roads had occasionally appeared at one of its previous meetings, but the invitation to our Association for membership aroused an interest which led to the ap- pearance of over forty American delegates at the London Congress. It is true that this was but a small minority of the seven hundred and fifty delegates present, but the effect producd by their appearance on this occasion was out of all proportion to their numbers. The very fact that they represented a greater railway mileage than all the other railway delegates particularly emphasized the presence of the importance of the American delegation. The additional fact that they were akin in blood and language to the British delegates who were our hosts was another cause for giving them a prominent place on many occasions. The opportunities there afforded for personal acquaintance with distinguished representatives of the railway managements of Continental Europe, of South America, of Asia and of Australia, and of impressing upon them the merits of American practice, were of a character that could not have otherwise been obtained. And there is reason to believe that the impressions then made upon the ADDRESSES, AMERICAK RAILWAY ASSOCIATION, 143 minds of these men, who control the construction and operation of the railways of that other half of the world beyond the seas, will tend to increase their desire to know something more about the appliances and methods which in one generation have covered our country with a net-work of railways about equal in mileage to the re- maining railways on the face of the earth. And here, again, is a field of usefulness for the American Railway Association, the extent of which and of its im- portance to our people cannot be adequately appreciated by those who were not present at that Congress. It is the introduction of American railway methods of construction and equipment and operation on that tripartite continent of which Europe is the smallest member. Of that continent of thirty-three million square miles Europe constitutes but one-ninth in area, and yet Europe is larger than the United States. Of the total railway mileage of the world nearly one-half is in this country and most of the other half is in Europe. It is to the other great members of the trans- Atlantic continent — it is to Asia and Africa that I would draw your attention, with their area of nearly thirty million square miles and their population of one thousand million human beings. I would ask you to lose sight of the great- ness of your own people for a moment, of your population of sixty- three millions and your territory of three million square miles, and think of these other lands with ten times your area and fifteen times your population. Is this great field for railroad construction and man- agement to be disregarded by those who are wont to boast of American energy and enterprise ? Are we to remain contented with the restricted possibilities for American railway men and for American manufacturers of railway material in the maintenance and operation of roads within our own national boundaries ? So long as we are adding from ten to twelve thousand miles a year to our existing mileage the opportunities thus afforded them might have 144 • AMERICAN RAILWAY MANAGEMENT. been sufficient for their numbers and for their productive capacity, but the conditions are now becoming different, both for railroad men and manufacturers in this country. We are approaching gradually to the conditions which pre- vail in Europe, where there are more men and larger pro- (Juctive plants than can be profitably employed at home, and the time is not far distant when we also must look abroad for their employment. But it would be a waste of time to seek for such oppor- tunities either in Great Britain or in the western states of continental Europe. For European railway construc- tion and appliances and methods of operation have been firmly founded on British practice ; a practice so differ- ent from ours in all respects, even in technical terms and in ordinary railroad slang, that our own railroad men would there be out of place, whether as constructing en- gineers, as locomotive runners, conductors, brakemen or switchmen, and our manufacturers of rails, equipment and appliances as well. Indeed, Great Britain and the western European states themselves now look abroad for profitable employment for their men, their manufacturers and their surplus capital. Great Britain has found already her field in her own colonies and foreign possessions. France has her vantage ground in Africa, in Algeria and Senegal. Little Belgium, with her eleven thousand square miles of ter- ritory and her six million people, has established hers in equatorial Africa, and the Germans, just now outgrowing in productiveness their own needs, are eagerly watching and imitating their British kinfolks. Austria-Hungary, with half our population, is stretching her rails and her trade down the Danube and into the Balkan Peninsula. In considering this general advance of European coun- tries all alongr the strategic line of this campaign for African and Asiatic trade, we may well say, what will be left of the United States, when we begin to look be- jroiid our bgr^er? ? On the north of us is Canada, British ADDRESSES, AMERICAN RAILWAY ASSOCIATION. 14-5 by sentiment, and but partly American in railroad practice. To the south of us is Mexico, where we have some advantage over European methods and appliances ; some little opportunity in Cuba and Jamaica, and more perhaps in Central America. Then comes the semi-con- tinent of South America, with nearly twice oar area and half our population. This is our sphere of action, or, at least, that which will be left to us if we close our eyes to what is going on elsewhere on the globe, while European methods of railway construction and operation are being initiated in the vast regions of the earth still unprovided with modern facilities for transportation. If we wait until fifty miles is built from one African seaport and twenty from another into the heart of that continent, all under the British system, we may say farewell for employment there- after for any American men in those regions, or for the sale of railway appliances of American make. If French or Belgian or German engineers lay out a railroad line anywhere on the habitable globe, the French or Belgium or German appliances follow, as surely as the thread follows the needle. There is Russia, with twice our area and nearly double our population, just inaugur- ating a trans-continental railway system. That great em- pire was represented at the London Congress by a delega- tion of intelligent, experienced men, eagerly seeking for information. The Japanese representatives, too, were special inquirers as to American methods. For, after all, American methods are best suited for opening up routes on which the traffic has yet to be created. Whatever is best in European practice is best adapted to routes which are intended to furnish facil- ities for existing traffic. It is information as to cheap methods and cheap appliances which is w^anted by those who are pioneers in opening up the interior of Africa and of Siberia, and it is just this information which they will never get in Great Britain or on the continent, for in those 146 AMERICAN KAILWAY MANAGEMEl^T. countries they have but one way of doing anything in railroad practice. There is but one pattern and all kinds of cloth must be cut to suit it. They have loaded down their secondary railroad systems with expensive structures and interlocked switches and the attendant host of em- ployees^ so that even at home there still remain con- siderable communities without sufficient railroad facilities, because they cannot be operated with profit as constructed in their way ; yet we have, perhaps, thousands of miles of track paying expenses on less traffic. It is not our first-class roads, our trunk lines, that the projectors in those untried fields can study to advantage. These roads approximate in cost of construction and man- agement to those with which these projectors are already familiar. It is the cheap road, the cheap methods of operation that their interests require and of which they are ignorant. They look upon a single-track road operated on American methods simply as a death trap ; something that is only operated at the peril of both passengers and employees. When the American delegates spoke, at the London Congress, of handling fifty or one hundred trains a day and thirty or forty thousand cars a month over a single track, the statements were evidently received as specimens of American brag. Now, what opportunity is there for American methods and appliances getting even a foot-hold in lands where European influences prevail ? Evidently but little, so long as European ignorance prevails as to American methods and appliances, and it is just here that the value of the American Railway Association comes in ; that is, in pointing out the way for penetrating this ignorance, for dispersing the clouds of prejudice and the fog of in- difference which obscure the minds of those European engineers that control the purse-strings of the European capitalists who are to provide the means for constructing the untold thousands and ten of thousands of miles of ADDRESSES, AMERICAN RAILWAY ASSOCIATION". 147 railroad yet to be built in Asia and Africa and elsewhere, outside of the present limits of American influence. Our experience at the meeting of the International Rail- way Congress in London has impressed upon our minds the hopelessness of any attempt to remove European ig- norance and prejudice as to American railway practice by discussions held across the ocean. We cannot teach by precept. We must teach by example. Instead of ad- dressing the seven or eight hundred railway engineers and managers that make up the International Congress, in a land where there is not one example of American railway practice, let us induce that great body of men, foremost in railway reputation and experience throughout the world, to come and listen to us here, where every word that we speak will be multiplied in effect one tliousand fold by what they will find all around them. It is a case in which a great result is to be sought, one of momentous importance to the future welfare of our people, and the effort to accomplish this result must be correspondingly great. Desultory, isolated attempts will fail. Our energies must be concentrated to be effective, and the most effective way to concentrate them can only be afforded by the American Eailway Association. The next meeting of the International Eailway Con- gress is to be four years hence in Paris, at the time of the Exposition, and from what I learned unofRcially at the London meeting, I believe that if a proper effort be made on that occasion, the succeeding meeting can be held in the United States ; but if such an effort is to be made, then no time should be lost in preparing to make it, for there is much to be done if we are to offer such hos- pitality as was accorded to the Congress last year in Great Britain, and -we should not offer less to those whom we invite across the ocean to visit us. I do not know that I could have selected any subject for my address, on this the last occasion on which T shall have the honor to appear before you as your president, 148 AMERICAN RAILWAY MANAGEMENT. that could more fitly emphasize the termination of my nine years of service in that office. I say this because I appreciate the honor which you bestowed upon me when, in my absence and without my knowledge, you selected me as your principal representative at the meeting to which I have just referred, and where my eyes were opened to the enormous possibilities that I have just un- folded to you. I mention this only as the chief one among the many signal testimonies that I have received at your hands during my long term of office, of your con- tinuing appreciation of my devotion to the great cause which you represent, and I shall always feel that in this one instance alone I have been fully rewarded for all my efforts in your behalf. And now that I am about to say farewell, permit me to direct your minds for a moment to the principle which, in my opinion, should ever be the touch-stone to be ap- plied to any subject that may be presented for your con- sideration. The object for which you are organized is distinctly stated in your rules of order as "the development and solution of problems connected with railroad manage- ment in the mutual interest of the railroad companies of America." Your action is only "recommendatory in its character/' and " not binding upon any of the com- panies represented." So long as these cardinal points in your rules of order are carefully observed, your deliber- ations and conclusions will be of increasing value to the railroad companies constituting the members of this As- sociation. But it will be an evil day when they are ignored, when the " mutual interest of the railroad companies of Amer- ica " shall be disregarded, or when the action of this body shall be considered as anything more than " recommenda- tory in its character." Your proceedings have heretofore been harmonious in their results. However earnest your discussions, how- ADDRESSES, AMERICAIsr RAILWAY ASSOCIATION". 149 ever decided your opinions, you have all sought the same end ; honestly to work out the problems before you, in the mutual interest of those whom you represent, and so it may be expected to continue, so long as you discuss nothing but practical matters, so long as you strictly keep away from matters involving questions of revenue to your members. You are not votaries of Mammon. You seek the truth with reference to questions alfecting the main- tenance and operation of the great railroad system of this country ; its practical management has been intrusted to you, and while you continue to be guided by the principles which constitute the foundation of your Association, your feet will be in the right path, and the structure which you have been building up for the past ten years will maintain its stability and increase in usefulness. But, however careful you should be to remember that the action of this Association is only recommendatory in its character, do not be unmindful of what that action represents. It represents the convictions of the foremost railroad officials of this country, as to the best methods of American railway practice ; convictions reached with such opportunities for gathering information as no single one of you possesses, and reached, too, after the careful de- liberation of your standing committees, selected by your- selves as the most competent among you to apply their large experience to the solution of the problems submitted to them for determination. After the solutions thus reached have been laid before this body, composed, as it is, of those who are confessedly the ablest and foremost in the land in their own profession, and the seal of appro- bation is here stamped upon the conclusions of one of your standing committees, who is there so great in himself that will undertake to deny that the solution of any of the problems of railway management thus obtained is not in accordance with the best practice and is not in the mutual interest of the railroad companies of America, after it has been approved by the American Er.ilway Association ? OTHER ADDRESSES, ETC., ON RAILWAY MANAGEMENT. 151 OTHER ADDRESSES, ETC., ON RAIL- WAY MANAGEMENT. EFFICIENT EAILROAD MANAGEMENT : ADVAN- TAGES OF AN ADVISORY BOARD TO THE GEN- ERAL MANAGER. (Originally contributed to the Hailway Review, October, 1884.) The tendency to consolidate independent railroads into homogeneous systems seems irresistible, especially in the United States. Separate corporations have been united only to be merged into greater combinations, and these in their turn have become members of mighty systems whose mileage is stated in thousands. In spite of physical bar- riers, of local prejudices and of legislative obstructions, they are gradually drawn together by an influence almost as powerful and as pervasive as the universal law of gravi- tation. Under all forms of government, under despotic czar or constitutional monarch or popular sovereignty, this influence is everywhere at work ; everywhere a potent factor in the reorganization of militant into industrial communities. Its effect upon the welfare of society is far from being understood ; it has as yet been scarcely the subject of comment. Yet it furnishes matter for serious reflection to the statesman, to the political economist and to the sociologist. Among the many aspects in which this subject may be considered there are several which are of especial interest to stockholders and to managers ; none more so than that of the efficient management of the gigantic organizations which have been thus formed, and which it is the purpose of this article to discuss. The analogy already remarked between the tendency to consolidation and the mysterious influence of gravity may be still further drawn upon in considering the direction 153 154 AMERICAN RAILWAY MAKAGEMENT. in which the management of great railroad systems may be expected to develop. The same forces, centripetal and centrifugal, are present as in the solar system. If they could be as equally balanced, the same perfection might be attained. But this is not to be expected of the works of man — and this particular work of his has attained as yet but a moderate degree of excellence. In its present state of development the centripetal force is in excess, and the tendency is strong towards a centralized management. In turning from the works of nature to those of mankind we enter the domain of human government as well as of Divine law. We here find the centripetal force repre- sented by despotism and the centrifugal force by anarchy, where either is in excess. A despotic form of govern■^ ment is really efficient only within a restricted area and\ over a small number of persons. It is limited by the ca- I pacity of the individual despot. Of unquestioned virtue I in the family as parental authority and the only practicable / form of government among errant tribes of Arabs and/ Tartars where the despot rules as patriarch, its usefulness diminishes as the extent of its jurisdiction increases. When millions of men occupying a vast territory are brought under autocratic sway it confesses its inefficiency to govern by lapsing into rank tyranny. In fact under such rule the tyrant does not govern ; it is the favorite who governs and not the ostensible ruler. After many bitter conflicts with despotic power, after many experimental failures, the more enlightened nation^ are learning how to govern efficiently. They are learn- ing that one man can do but so much work in a given time ; that instead of eking out the individual capacity- mental and physical— of the responsible governor, by re- sorting to the aid of irresponsible favorites, greater ^efficiency is obtained by delegating some part of his work 4 to legally authorized assistants. In a word, the individual despot is replaced by an organized government, and that which was inefficiently done by one is efficiently donejby^ * / MISCELLANEOUS ADDRESSES, ETC. 155 several. The degree of efficiency depends mainly upon the excellence of the organization. It is no part of the purpose of this article to follow this particular line of thought any further than may be neces- sary to illustrate or enforce the principles involved in an efficient method of railroad management. The vast systems which have resulted from progressive aggregation have outgrown the possibility of autocratic control. A division of duties, of responsibility and of authority has of necessity been accomplished, and out of this division has grown a method of management which may well be com- pared to an organized form of government. As the government of nations had its origin in the patriarchal rule, so has it been with the management of railroads. There are those among us whose nlemory goes back to the patriarchal stage of management, when most corporations owned not more than fifty or a hundred miles of track ; when the president was the sole and direct con- trolling spirit ; when the treasurer sold tickets at the principal passenger station on the road and the freight agent at the same station was virtually the head of the transportation department ; when no bill was paid except upon the order of the president, and periodical reports and statistical statements were unknown. Some of us remember when current gossip pointed out the irresponsi- ble adviser whose favor was desired when appointments were sought ; when promotion was capriciously bestowed, and dismissals resulted from a fit of passion. The experience of half a century has developed a form "^ of organization which has been generally accepted as the pattern of efficient management. It is based upon a recognition of the several purposes which the organization is expected to fulfill. There is, first, the road which forms the line of communication, whose maintenance is in charge of the roadway department. Then there is the movement of the vehicles in which freight and passengers are car- led, which service is performed by the transportation de- 156 AMERICAN RAILWAY MANAGEMENT. partment, and the maintenance of these vehicles by the car department and of the motors by the locomotive de- partment ; or, these two departments may be operated jointly as the machinery department. There are the some- what complex duties involved in soliciting and handling the business of the traffic department, which may be di- vided betwen the general freight agency and the general passenger agency. These are the principal operating de- partments, but the organization must also include a fiscal agency under the treasurer, a department of audit and statistics, a purchasing agency and perhaps a technical bureau and a legal department. With a general superin- tendent or a general manager, assisted by division superin- tendents and agents, the plan here given is the recognized type of a liiodern railroad organization, apart from what belongs to it as a legal corporation. Admitting that cir- cumstances have made it what it is, and that it is there- fore best suited to the conditions under which the work is to be performed, the question is how to get the most ef- ficient service out of it. The tendency is toward the con- centration of authority in one man ; the effort is a sort of congestion at the periphery of which he is the center. Everything in the direction of progress and reform must be initiated by the head of the management. The motion in that direction is not uniform : it is spasmodic. Men ordinarily move in grooves — in the line of least resistance. Perhaps it is as well that they do. Those who have to manage them have only to prepare the grooves and they can then know where to find those whose duty it is to move in them. But there may be too much of this. It is not well for all but one man in an organization to be kept in grooves ; it is not well for the heads of departments to be confined to registering and executing the edicts of the responsible manager of the railroad property. If this course be pursued, then the official head will be taxed be- yond his individual capacity and the machine will not be at its maximum state of efficiency. It is this reservation by MISCELLANEOUS ADDRESSES, ETC. 157 the central head of all power to originate changes, which is to be guarded against in the organization of great railroad systems. Its disadvantages are shown in the efforts to attain uniformity in non-essential matters ; in establishing rigid standards where progressive improvement is possible, where the approximately accurate adaptation of ends to means has not been reached. The more this tendency to uniformity and centralization is encouraged, the less will be the desire for change, the smaller the opportunity for progress and reform, and our railroad system will gradu- ally approach a condition of fixedness ; a sort of mental petrifaction akin to Chinese forms of thought and far removed from that ready, inventive turn of mind, full of resources, self-reliant and quick to appreciate a better way of doing things which we are pleased to appropriate to ourselves and to call " truly American." If this centralized despotic type of railroad organization — the Chinese type, so to speak — is to be guarded against, that which should be preferred is right before us, and is indeed "truly American." It is the federal type of or- ganization. It grows out of considering the entire system not as a uniform mass, but as a congeries of smaller bodies, each moving in its peculiar orbit, but co-ordinated to one common end by a central force — in short, a solar system. Under such a plan of organization, the officials in each subdivision should be free to manage their local affairs to suit themselves : they should only be constrained for the general good. Uniformity, so far from being encouraged should be discouraged, save when essential to economy and to a better service for the public. Each sub-organiza- tion, if left to itself, w^ll work out improvements and sug- gest ideas that may be assimilated by the central author- ity for the general good, and instead of one man trying to do the thinking for all in matters of detail, he may be assisted by the mental efforts of all in everything save that in which he alone can do the thinkinsr. The principal part which the head of a great system 158 AMERICAN RAILWAY MANAGEMENT. should retain for himself is not the originating of ideas nor the institution of reforms, but the co-ordination of the efforts of those who are responsible to him, so that '^ all may be parts of one resplendent whole." There is noth- ing original in these suggestions. They have occurred to all who have had experience in organizing bodies of men : they are to a greater or less extent recognized in the man- agement of our principal railroad systems, and the greater the extent the better the result. They have been espe- cially recognized in the management with which I am con- nected, and the experiments which we have been led to make in thus recognizing them have been so interesting to me as to induce me to consent to become a contributor to the series of articles for publication in the Eailway Re- view. As the experiment w^as in a great measure a per- sonal one on my part, and as I propose to state with some particularity its origin and development, my statements must of necessity assume a personal form. Beginning in 1879 with the organization of the Savan- nah, Florida & Western Railway Company, which suc- ceeded the Atlantic & Gulf Railroad Company, there have from time to time been brought together under one gen- eral ownership and control a number of railroad corpora- tions in South Carolina, Georgia and Florida, and in con- nection with them several steamboat lines — aggregating at present about 800 miles of road and 600 miles of steam- iDoat lines — which, from the fact that Mr. H. B. Plant is the principal stockholder and the president of the more important corporations, is locally known as the " Plant system." This system is somewhat anomalous in its for- mation. It includes roads which have existed for 20 years and more, long enough to have been worn out ; wrecks that were to be reconstructed physically and financially ; as also lines projected in South Florida, into an almost unknown region, to be constructed under circumstances closely resembling the extension of lines into the western prairies. It includes corporations in three states, operated MISCELLANEOUS ADDRESSES, ETC. 159 under different laws, owning roads of different gauges and with stockholders not interested alike in all of them. Under these conditions it was not practicable to bring them all into uniformity, and, as a rule, it has not been attempted. What has been done toward operating them in a common interest has grown out of an experiment in the management of the Savannah, Florida & Western Rail- way with a different object in view. That corporation is the prime factor in the " Plant system.^' Its practical management has been substan- tially continuous for 18 years. Many of its officials and employees have grown from youth to manhood in its service and are distinguished for their zeal and intelligence. It owns over 500 miles of road with extensive terminal facilities, including docks for the interchange of traffic both with seagoing vessels and with river craft, and offers an appropriate field for observation and experiment. During a period in which the attention of all concerned was absorbed in making provision for a rapidly growing business, we were more intent on getting the work done than in finding out the cheapest way to do it, until we began to see that we were spending too much money, and our thoughts were turned upon retrenchment. In an average monthly expenditure of $150,000 it is not an easy matter to determine just where to economize without injury to the service. It requires a minute analysis of the expenditures and an intimate acquaintance with the detailed operations of the road. Even with this information at hand, the responsible managers of the property found their time so much occupied with other matters as to have but little of it left to devote to the consideration of expenses. Their efforts amounted to a monthly " scold " when the expense accounts were made up. This of course was unsatisfactory. It was still more unsatisfactory to feel that the ordering of these expenses was not under efficient control. In theory no expense 160 AMERICAN RAILWAY MANAGEMENT. could be incurred without the approval of the superin- tendent ; in practice that official hurriedly approved hundreds of vouchers without having time to examine them. Indeed, he could not be absent from his office a day or two without leaving a number of vouchers approved in blank to be tilled out in payment of accounts which could not be delayed until his return. In this, as in other affairs, what looks well in principle may turn out other- wise in its application. As already stated, this method of managing the ex- penditures was unsatisfactory, not only because the re- trenchment was sometimes injudiciously applied, but also because the spending of the money had got beyond the control of those who were responsible for it. In consider- ing this matter it was evident that the retrenchment had *^ to begin before the money was spent, and that the men who really spent it must be held responsible for the way in which it was spent. It seemed absurd that the osten- sible examination and approval of the accounts should be expected of the superintendent, whose time was otherwise fully occupied. An officer was therefore appointed, styled the comptroller, who was charged with these and with other duties. It was then determined that whoever was authorized to incur any expense should be required to ^ certify to the correctness of the account before it went to the comptroller for approval. In this way the absurdity in preparing expense accounts for payment was gotten rid of, and an order was issued in the following terms : I. All accounts will be audited under the supervision of an oflScer to be entitled the comptroller. II. The auditors of earnings and expenses will report to the comptroller. III. Expense accounts will be audited as follows : 1. Accounts for materials and supplies will be certified to by the purchasins: agent as to prices and quantity. 2. Pay-rolls and other accounts that do not pass through the purchasing agent's office will be certified to by the general manager, superintendent, or head of the department in which the expense was incurred. MISCELLAl^EOIJS ADDRESSES, ETC. 161 IV. All expense vouchers must be approved by the comptroller before payment. V. The comptroller will prepare the reports relating to the earn- ings and expenses of the company, and of its leased or operated lines, and compile such statistical information as may be required. VI. Heads of departments and other officers and agents of the company will make such reports and furnish such information to the comptroller as he may require. We had now put the saddle on the right horse, so far as to fix the responsibility for making an account and to provide for its proper examination and audit, but we had yet to put the bridle into the right hands. In doing this we resorted to the experience of others to whom had been delegated the control of large expenditures under some- what similar conditions. We found that under organized governments the officials who had to account for the dis- position they had made of the nation's revenues did so by the aid of a budget — that is, they started the year with a detailed estimate of what they intended to spend in each department, and then kept to this line as near as circum- stances would permit. So we established a " budget." We called on the chief of each department to state in detail under specific heads, how much he would require to operate his department for the year. We added these estimates together, found the annual expense arrived at in this way to be greater than seemed to us judicious, called a conference of all in interest, discussed the various items and got the total estimated annual expense down as low as was thought to be prac- ticable, if we were to have efficient service. The detailed estimate in each department was then divided into 12 equal monthly parts, and the head of each department was charged with the control of the expenditure appertaining thereto. The comptroller was then instructed to prepare a monthly statement in which the expenses actually incurred in each department were compared in detail with the es- timates. These monthly statements were presented at a 162 AMERICAN RAILWAY MANAGEMENT. «5Q Ph 1.?- .2 ® J> 'a ►* t-i *^ Sooeo 888 tfj -00 888 at eo 8888 88 888888888888 ^SJ§^8S22S8SJg 88888888888 o CO s « a e8 O i» ^ _ ,^ be 35 oj fl '3 © ■^ S-2 lis ^ Bert's > be" 'a w O K a ■ « "^ 03 |tI| 'O'O =s c a h£C8 O wo 08 CO « X p fell a 3 o u 'J ' ■col a •,d.o ' oSS a es c ■ (55 5S a o 1.-2:5 = ? • U L. 0) ^ ce -c a = ^ tS u cS 3 SkT 1 1 MISCELLANEOUS ADDRESSES, ETC. 163 Ol-O O -<3 ■<»< 88 QOO !§8 T}< 00 T-C lO .888 88 ■g|2 II 88 88 coo 88 88 88 888888 o o o o o o 88 lOJOO 88 888 888 ocSao 88 88 ii 8888 §88 05 O O SO » (N ofoT 88 88 o w s^ i'Sru Co = Ill 2 «- IJ C ^ -T3 03 « O 2^ 3 3 C bCcS 3 « 08 cS eg bCo a O (V O O CO *^ O S t. TO • a a " as w ail c aS^ - u t. .P O S a^ 3 cs 0, 0) C ?^ 1-' 01 3; q_i ce 05 05 b£ b£ .3 .h .£: 53 S+j c3 oj cS ±iJ c aao. — 1:2 ."1^ -1^ il^ "l^ ) CQ ^ ^ ^ ^ ^ ^ ^ ^ ' 164 AMERICAN RAILWAY MANAGEMENT. 3 w GQ ^ QQ O Ph ^ 8 &H M 02 -< I i g .8 Eh <- sQ ;> -«) f 8 0 W T> O — O 100 woo;* C XQD ir» 10 ^ ioco< i irt 00 c in Tji »n OS ©J OS S3S OS OS »o •C l- O — ^ »» »0 to OS t- ifi «rt OS !?»!.-. C» OS so OS CO T-t CO ^ SiftO 00 OifiOOOO ceo o io lOr-iineocoo C^QOCO «0 (WOClNtDiOO* • -oseoos »-i CO ^tD'-fOinur> to »n «- «D ic ir^TT irf (NOD of ©T MISCELLAKEOUS ADDRESSES, ETC. 165 meeting of the heads of the departments presided over by the general manager with the superintendent as vice presi- dent. At these meetings each departmental head, in turn, went over the comparative statement of the expenses for which he was responsible, principally to explain why he had exceeded the amount he had estimated for any par- ticular item. In making these explanations, it was found advisable to have the treasurer, the comptroller, the pur- chasing agent and the auditor of expenses present, and to keep minutes of the proceedings. As a stimulus to these exercises and to make the respon- sible officials feel personally interested in the results, it was understood that each of them who kept within his annual estimate should receive a certain increase of salary, and that if the company earned a dividend of 7 per cent, on the year's business they should all receive an additional amount whether the estimates were exceeded or not. This experiment went into effect in the year 1881, and after another year's experience we were so well satisfied with it that we tried the same plan on the Charleston & Savannah Eailway, a road which connects at Savannah with the Savannah, Florida & Western Eailway. To arouse still further the spirit of emulation the monthly statements of expenses of both roads were reported at a meeting where the officials of both were together as- sembled, and each member present was permitted to ask any questions concerning the details there submitted and explained. Little by little, other matters connected with the operations of the two roads were talked about and dis- cussed at these meetings in an informal way until it oc- curred to the two superintendents and the general man- ager that here was offered an opportunity for obtaining assistance in matters outside of expenditures, and we at length formally organized what is now known among us as the advisory board to the general manager. Before describing the organization and proceedings of 166 AMERICAK RAILWAY MANAGEMENT. this advisory board, I would refer to the budget for 1884, for the Savannah, Florida & Western Railway. (See Statement '^A.") The amounts appropriated respectively for the several departments were as follows : For administrative department $169,680.00 "roadway " 393,928.80 "locomotive " 848,156.00 " car " 240,096.00 "transportation " 243,564 00 " freight and passenger department 308,138.28 Total $1,703,563.08 To this amount was added the cost of 1,650 tons steel rails and fastenings, being the allowance for annual re- newals, whatever the cost might be. As already stated, the detailed estimate in each department was divided into 12 equal monthly parts, as shown in " Statement A," for the purpose of frequent comparison with the actual ex- penditures. The cost of annual rail renewals (1,650 tons) and of the accompanying fastenings is not included in the subdivided estimates. The distribution of some of the items is not in accordance with general practice, but there are good reasons for this divergence, growing out of the necessity for classifying such items in each department as were con- trolled by its responsible head. In these estimates some of the items could be estimated with approximate accuracy ; others were based upon the experience of previous years. The expenditures in some of the subdivisions vary considerably in different months, but this was kept in view by carrying forward from month to month the aggregate sum of the estimated and of the actual expenditures as each monthly comparison was made. The comparison for the month of May, 1884, was as follows : MISCELLANEOUS ADDBESSES, ETC. 167 Department. Administrative. . Roadway Locomotive . . . . Car Transportation . . Freight and pass Total Expenditures. Over. Estimated. Actual. $14,140 32,827 29,013 20,008 20,297 25,678 $12,173 28,612 25,226 19,635 19,022 25,502 $141,963 $130,170 Under. $1,967 4.215 3,787 373 1,275 176 $11,793 The result for the five months ending May 31, 1884, was as follows : Department. Expenditures. Over. Under. Estimated. Actual. Administrative $70,700 164,137 145,065 100,040 101,485 128,391 $68,730 155,373 135,259 99,247 108,112 137,491 $1,970 Roadway 8,764 Locomotive 9,806 793 Car $6 "627' 9,100 Transportation Freight and pass Total $709,818 $704,212 $5,606 The manner in which the detailed monthly comparisons are made will be seen from the comparison for May, 1884, given in " Statement B,^^ of the expenditures of the freight and passenger department. The benefits derived from calling the heads of depart- ments into council with the responsible management to consider matters pertaining to expenditures, led, as already mentioned, to a still further expansion of the idea, by the establishment of an advisory board to the general manager. The organization of this board and its functions are stated in its constitution and by-laws as follows : 168 american railway management. Constitution and By-Laws of the Advisory Board TO THE General Manager of the Savannah, Flor- ida & Western and Charleston & Savannah Eail- ways. CONSTITUTION. ARTICLE I. Section 1. This body shall be knowD as the Advisory Board to the General Manager. Sec. 2. This board shall consist of the following officials of the several railway Hues under the Plant system : Superintendents. Assistant superintendents. Chief or consulting engineers. Comptrollers. Treasurers. Masters of roadway, or roadmasters. Masters of machinery. Masters of transportation. Genera] freight agents. i General ticket or passenger agents. Purchasing agents. Auditors. Assistant general counsel. article n. The purposes in establishing this board are to secure better meth- ods in railway administration ; to analyze expenditures and to locate the responsibility therefor in the several departments ; to give the officials in the system a knowledge of the operations of the various departments for their more perfect information and understanding of the details of the system of railway manugemeut ; to enable them from such knowledge to give such aid and assistance to the manage- ment of the line as is sought to be accomplished by this association, and to a more perfect working of their own departments. article III. Of this board the general manager shall be president **ex-officio," and will occupy the chair at meetings when he thinks proper to do so. article IV. Any action had by this board in matters affecting the administra- tion of the affairs of the railways must have the sanction of the general manager to become of force in operation. article v. This constitution can be altered by a two-thirds vote of the board, with the approval of the general manager. MISCELLANEOUS ADDRESSES, ETC. 169 BY-LAWS. I. There shall be a meetinc^, ou the last Friday in each mbnth, to be called by the president, or in his absence by the chairman last presiding. II. Monthly meetings may be postponed or dispensed with by order of the ])residcnt. III. Special meetings may be called when deemed advisable. IV. The superintendents of the several lines, now or hereafter con- nected Willi this system, shall be vice-presidenls of this board, and will preside over the meetings, in rotation when the chair is not occupied by the president. V. Tlie president shall appoint a permanent secretary, in whose absence the chair will appoint a secretary pro tern. VI. Order of business. 1st. Reading and confirming proceedings of the previous meeting. 2d. Presentation of reports of expenditures in the several depart- ments of each road in ihe system, in the folio \ing order : roadway, locomotive, car, transportation, and freight and passenger. 3d. Reports of standing comrnittees. 4th. Reports of special committees. 5th. New business. VII. For each road there shall be a standing committee of three, known as the " committee on distribution of accounts " VIII. These comm ttees shall be composed of the comptroller, treasurer and purchasing agent, or, in the absence of any of the above offices on any road, the vacancy may be supplied by the superinten- dent in charge. IX. Heads of departments will refer to this committee their monthly reports of expenditures, with such explanations as they desire to make. X. Reports of the expenditures in the several departments will be submitted by the chairman of the standing committee for each road. XI. All questions of dispute as to a charge shall be referred to this committee, whose action shall be final, unless modified at the next meeting of the board. XII. Special committees will be appointed by the chair to con- sider mutters of interest to the board. XIII. All motions before the meeting must be" made in writing. XIV. New subjects, where they cannot be disposed of, will be referred to committees for report. XV. The difference between the accepted estimate and actual ex- penditures in each sub-division of accounts shall be carried forward by the respective heads of departments from month to month until the end of the year, when the result of the year's operations will appear. XVI. Whenever required by the president heads of departments shall submit estimates of expenses for their several departments for such period in advance as he shall desire. XVII. These by-laws can be altered by a majority vote of the board at any regular meeting. 170 AMERICAN RAILWAY MANAGEMENT. Amendments. 1. There shall be regular standing committees on constitution and by-laws, administrative department, roadway department, machinery department, transportation department and freight and passage de- partment, to whom shall be referred monthly all matters pertaining respectively to these departments. 2. A record shall be kept by the secretary giving in numerical order the several measures passed by this board. As each measure shall be put in effect by a general order, the same shall be made a part of the record. 3. Thirteen members shall constitute a quorum. 4. Roberts' Rules of Order are adopted as authority. 5. Wiienever the report of a committee necessitates the publication of an order to carry it into effect, the report shall be in the form of the necessary order. "When an order is not necessary, the adoption of a report shall be suflQcient, but such report shall be approved by the president of the board and duly recorded in the minutes ; the secretary shall then notify the parties interested. The operations of the advisory board can be understood better by a perusal of the monthly proceedings than in any other way. I have therefore included the minutes of the meeting held in May, 1884 : Savannah, Ga., May 30, 1884. Regular meeting of advisory board to general manager, called to order at 9.30 a.m., C. S Gadsden, superintendent Charleston & Sa- vannah Railway, vice president, in the chair. Present following members from Savannah, Florida & Western Railway : R. G. Fleming, superintendent ; F. S. Prendergast, chief engi- neer ; W. P. Hardee, treasurer ; W. B. McKee, comptroller ; Geo. W. Haines, assistant superintendent ; H. W. Reed, master roadway; G. M. D. Riley, master machinery ; O. W. Jackson, master trans- portation ; J. L. Taylor, general freight and passenger agent ; H. H. McKee, auditor expenses; C. T. Morel, auditor earnings; A. A. Aveilhe, purchasing agent. S. T. Kingsbery, assistant general counsel, reported at 10.25 a.m. And from the Charleston & Savannah Railway : J. Moultrie Lee, treasurer; H. A. Ulmo, master machinery; J. W. Craig, master roadway and transportation ; S. C. Boylston, gen- eral freight and passenger agent; E. P. McSwiney, auditor ex- penses. Minutes of previous regular meeting and of the special meetings of April 24 and May 5 were read and confirmed. Reports of expenditures in the several departments of the Charles- ton & Savannah and Savannah, Florida & Western Railways were read and accepted. MISCELLANEOUS ADDRESSES, ETC. 171 REPORTS OF STANDING COMMITTEES. Committee on By-Laws " In what place, iu ilie order of business, should unfinished busi- ness be considered." The committee respectfully report that our rules of order provide for this. See order of business page 115, Roberts' Rules of Order. Adopted. Committee on Administrative Department "Payment of wages by discharge ticket." Report following order : *• Discharge tickets will be paid by the paymaster upon the ■approval of the head of department issuing the ticket." Adopted. "Preservation of records." Presented plans and estimate for a fire-proof vault, and recommended that it be built not less than 60 feet east of the general office building as shown in diagram. Adopted. Committee on Roadway. " Special compensation to section foremen, etc." The report pre- sented by the committee at previous meeting having been printed and distributed in accordance with resolution then passed, was taken up and adopted with additional report that the cost of premiums to each company will be, for Savannah, Florida & Western Railway : Annual premiums |4o0 Quarterly premiums 900 Total per annum $1350 For the Charleston & Savannah Railway : Annual premiums , . . . , $170 Quarterly premiums 360 Total per annum $530 Were granted further time to report on "specification for trestle bridges;" "standard yard switch;" "fence law;" "location of waterways." Committee on Machinery. Were granted further time to report on "drawing standard plan for releasing air brakes;" "adoption of Congdon brake shoe;" "standard wheels and axles; " "standard freight cars; " " passenger car speci- fications—ventilation;" "plans for machine shops;" "locomotive specifications — driving-wheel tires." "Locomotive specifications — oil feeders." Presented following report, which was on motion received as information. " After care- ful examination of construction and working of different styles of oil feeders, and correspondence in relation to experience of leading railroads, and upon our own experience, they recommended that some form of plunger cup be used and preferably the ' Dreyfus cup.' They recommend phosphor-bronze bearings instead of brass, also the abandoning of Babbitt metal in the bearings, as they consider that 172 AMERICAN RAILWAY MAKAGEMEKT. Babbitt metal is liable, with very litt'e heat, to stop up the feed tube of oil cups. They recommend the solid-end rod iu place of strap keys, etc." " Wages of mechanics." Presented a tabular report of wages paid by Savannah, Florida & Western, Charleston & Savauuah Railways, South Carolina and Central Railroads, which was received as infor- mation. Committee on Transpoitation. Were granted further time to report on "railroad legislation — laws of Georgia, Alabama, Mississippi and United States as to run- ning of railway trains " and " trains breaking loose — best means of prevention." Commit ee on Freight and Passaye. Were granted further time to report on " extent to which com- mon carrier is protected where bill of lading provides that, in event of loss by fire, the common carrier and its connections shall have the benefit of any insurance the shipper may have effected thereon" and " liability of railroad companies as common carriers; ' "claim agency as a bureau of tiie geuernl manager's oflice," "general agency ex- penses" and "transportation of high explosives." The committee recommend: 1. That the following items of ex- pense of general agency shall be borne by the entire system: Sal- aries of agents and clerks, and ottice rent and expenses at Boston, New York, Philadelphia and Baltimore; printing and stationery; advertising; traveling expenses. 2. The basis of division shall be» the gross earnings of each member of the system for the previous year. 3 The accounts shall be rendered monthly by the comptrol- ler of the Savannah, Florida & Western Railway. 4. That the South Florida Railroad and the People's Line of Steamers shall con- tribute on same basis as the other members of the system. Adopted, Committee on Distribution of Accounts "Division of salaries of agents and clerks on line of road between freight and passenger accounts." Presented report, which, on mo- lion, was recommitted for a more distinct and full report. REPORTS OF JOINT COMMITTEES. Joint Committee on Roadway, Transportation, and Freight and Passage. "Plan for standard warehouse for small stations." Presented a plan, which was adopted. Joint Committee on Roadway and Transportation. "Method in use for paying and provisioning hands; precautions taken for security of pay-roll money and provisions in transit ; order to cover same." Presented a report, which was rejected on the jidoptiou of a minority report offered by Mr. Reed as a substitute, and as follows : "The minority of your committee beg leave to report that the present system of paying and rationing on the line of the Savannah, Florida & Western Railway be continued iu force for the following reasons : 1. The present system of paying and rationing has given MISCELLANEOUS ADDRESSES, ETC. 173 perfect satisfjictiou, aad it is doubtful if our present thorough organizatiou could be maintained if the system were change 1. 2. The expenses of paying and rationing by any other method than that at present employed would not be the means of reducing the expenses of this particular service. It is further recommended that the pay car, its armament, and the safe be examined and pi iced in as secure and perfect a condition as possible by the purchasing agent." Were granted further time to report on "Plans and estimates for improvements at Southover Junction." '•Plan and estimate for proposed side track at Southover Junc- tion." Presented plan and estimate, which was adopted, and rec- ommend that the work be commenced immediately. "Rules to govern draw-bridge tenders." Your committee beg leave to report that such an order is already prepared in our new train rules. Received as information. Joint Commit ee on Machinery and Transporta ion. Were granted further time to report on "Record of wheel mile- age ; " "standard cab car ; " "inspection of foi e gn cars at junction points ; " "standard style of fire-extinguisher." Joint Committee on Transportation, Roadioay, and Freight and Passage, "Refrigerator cars." The c ramittee beg leave to nport th.it they find the weight of the various classes of refrigerator cars, when loaded wltii perishable freight, is not greater than the standard box cars of these companies when loaded to their utmost capacity ; al-o tiiat the method of carrying ice in the upper pa t of tliese cars and the usual weight of such c .rs has not rendered them unsafe to handle in our trains. Oar experience proves that we have had only O'le accident from th's cause since these cars commenced running on our roads. This accident happened several 3''ears ago on a stringer track on the Albany division. They fully indorse the report of the standing c immittee on freight and passasre herewith, as made at the February meeting, viz. : that the freight department be instructed to assess the weight of freig t loaded into refrigerator cars at 50 per cent mor(; th n the actual weight of the articles tliems' Ives, nnd that charges be made on assessed weights. This action is based on the additional dead weight necessarily carried — four to five tons in weiglit of car and three tons in ice — and upon the fact that these cars are almost invariably handled empty when south bound, at a cost of three quarters of a cent per mile car mileage, and are very often returned north bound empty at a similar rate of car mileage. The committee consider the trans; ortation of perishable articles in refrigerator cars a very expensive method for the railroads hauling S!im ', as it is entirely different from the ordinary manner of hand- ling similar shipments ;. and they believe the additional charges herein recommended for this extra freight service are just and reaso'able rates. By Mr. Boyleston : ''H' solved. That the report of the committee on refiigerator cars be referred to the assis'ant general counsel to frame the principles therein laid down in co iformity to law." Carried. I 174 AMERICAN RAILWAY MAKAGEMENT. Joint Committee on Ti'ansportation, Machinery, and Roadway. Were granted further time to report on "Trespassers on track; rule to protect company." Joint Commiliee on Transportation and Machinery. "Reduction stock of car wheels " The committee report: There are in use on the Savannah, Florida & Western Railway — No. 1 passenger axle with iournal 3|x8^, collarless. No. 2 passenger axle with journal 3fx7, collarless. No. 3 freight axle with coll;,r journal 3|x7. No. 4 passenger axle with journal 8|x5^. No. 5 freight axle with journal 3|x5J. No. 6 passenger axle with journal 3:^x5. (C. L. cars.) On Charleston & Savannah Railway — No. 7 passenger axle with journal 3|x6. No. 8 freight axle with journal 3^x6. The lengths of these are different. The Savannah, Florida & Western Rai way has commenced the substitution of standaid freight tiucks with No. 3 axles for those requiring No 5 axles, and the supply of No. 5 for renewals is drawn from discarded trucks ; thus the purchasing agent is not required to keep No. 5 in stock. '1 he No. 2 journal is'being substituted by No. 3. The committee recommend that No. 4 be treated similarly to No. 5, as also the Charleston " O t ooo< I I »0 '-' O •?) »-i ■£ -f 05 >f5 i.O OOiCJvl'ol OSOJOl-'Tj'tO T)»50|0 l-lT*r-i.-lT«<|^ SSSiS (OS OS ?OO5»O00tJ- «5C 1-1 I W I »-< 1-1 0» I I- I •r ^ 5 ^ I I ' S 5i S w ^ q ^ J -g c o i; 1 --3 eg D m 0) c a 3 w II fe 0) • 3 as-": -u eg -C C £ 3 230 AMERICAN" IcAILWAY MANAGEMENT. osop I I eo 1-!- a> a E 3 'Z «OCO«3 o'eo tn eo iO cJ o '^ ' ""^ CO f-t~eo o I- io »n o c .— T-i l-H I- O. ^'cifcoeo'io' ^ to to o c\f 05 o« w I- '- 88§S! 8§iS? 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Accidents, railroad, address on, 227. appendix to address on, 254. at bridges, classified, 244, 245. causes of, table of, in detail, 250 et seq. chief cause of, 247. classification of causes of, 227. crossing or miscellaneous, 231 et seq. few beyond control of man, 253. from car-coupling, Mr. Garey's remarks on, 43. from defects of draw-gear, 234. equipment, Increase of, 232. road and operation, decrease of, 232. how to diminish, 246. increasing liability to, 231 et seq. personal injuries in, 248, 249, 250. prevention of, to cattle, etc., 244. Railroad Gazette's statistics of, 227, 228. serious, personal injuries in, 250. to locomotives, 244. to train and yard men, 43. (See also Derailments.) Accounts, uniform, a system of, undesirable, 221. Adams, Mr. F. D., Prest. M. C. B. Association. appointed committee on uniform car platforms, 40. chairman committee on draw-bars and buffers, 40. first to suggest uniform height for car-couplers, 39, 43. Addresses before American Railway Association : committee work of the Am. Ry. Asso'n, 16. coSperation, value of, in questions of railway management, 76. cost of transportation, 24. discipline on railroads, 8. field of usefulness of the Am . Ry. Asso'n, 1. labor organizations, 84. operating expenses of a railroad, 96. railroad organization, 128, rates of transportation and cost of service, etc., 106. review of Am. Ry. Asso^n work for ten years, 140. safety appliances— car-couplers, 38. standard code of train rules ; block-system, 62. 841 342 INDEX. Addresses, miscellaneous, etc.: a railroad man; his training and career, 271. at annual dinner Western Railway Club, 290. before M. C. B. Asso'n, Saratoga, 298. before World's Railway Commerce Congress, 227. efficient railroad management; advisory board, etc., 153. the road master and the track foreman, 286. value of railroad property in the U. S., etc., S08. A.duiinistration department of railroad. classification of, 100. expenses of, on S., F. & W. Ry., 168 etseq. Advisory board to general manager. advantages of, 177. article on, 153. constitution and by-laws of, on "Plant System," 168, 169. minutes of. May 30, 1884, " Plant System," 170 et seq. organization of, " Plant System," 165. Agreements to maintain rates. See Rates and Traffic. Air-brakes, Westinghouse, great value of, 264. American and European railway systems compared, 295. American methods on foreign railways, etc. address concerning, 140. ' American railroads. See Railroads. rates of transportation and cost of service on, 106 et seq. American railway practice. better than European for new countries, 144, 295. field for, in other countries, 145, 294. need of European enlightenment concerning, 294. value of Am. Ry. Asso'n in spreading knowledge of, 146. American Railway Association. action of, simply recommendatory, 148, 149. a means of communication between public and railroads, 140, 141. character and objects of, 2, 75, 84, 148. development of, due to its committee work, 23. field of usefulness of, 1, 7, 22, 143. future of, 140. questions of operation and management its proper field, 3. railroad mileage of U. S. represented by, 28. recognized by Congress in fixing standards, 342, 298. record of work accomplished by, 76, 83, 84, 140. service of, in congressional legislation, 141. value of its standard code of rules, 246. when and where organized, 76, 140. work of, for ten years, reviewed, 140. Ames car-couplers, trial of, recommended by M. C. B. Committee, 46. Analysis of operating expenses, value of, 27. Anomalies in freight tariff of Georgia R. R. Comm'n, 190 et seq. Anomalous results in comparing ton-mileage with net revenue, 111. Arbitration in labor questions, difificultips of, 88, 89, 94. Archer car- couplers, trial of, recommended by M. C. B. Committee, 46. Asia and Africa, a field for American railroad enterprise, 143. Atlantic & Gulf R. R. Co., succeeded by S., F. & W. Ry., 158. Auditing of accounts, how ordered on " Plant System," 160 et seq. Author, representative of Am. Ry. Asso'n at London meeting of International Railway Congress, 148. INDEX. 343 Automatic couplers. See Car-couplers. Aveilhe, A. A., member advisory board, " Plant System," 170i Average haul, decrease of, 1889-93, 123. per passenger, 126. Average train-load, weight of, 1893, 123. '• Battle of the gauges," the, 261. Bessemer steel, use of, an epoch in railroad development, 263. rails, 323. Betterments not properly chargeable to cost of transportation, 213. Blenkinsop's part in locomotive development, 259. Block-signals, address on, 62. (See also Signals.) Block-signals and interlocking, attention of Roadmasters' Asso'n directed to, 288. Block-signal system, absolute, embarrassments of, 69. in principle an absolute safeguard against rear Collisions, 17. great cost of, precludes general adoption, 17. necessity for eliminating human faUibility in. 238. Block-signal system, permissive, compared with absolute, 238. engineer (train), and not flagman, should be responsible under, for train-protection, 238. in what respect any improvement over " time interval," 69. Block-signal system, adjuncts to, for automatically controlling trains, 73. conditions affecting, 68. differences of opinion among experts on, 69. efflciencj' of, in securing safe space-interval, 235. essential requisites for, 70 et seq. in what respect deficient, 71. more extended use of, recommended, 246. necessary safeguards in operating, 71, 72 et seq. three needs for operating trains under: ^ 1. Rules for the trainmen. "1 2. Signals for information. y 70. 8. Appliances for working signals.] value of, in preventing rear collisions, 16, 17. Bogie, or four-wheel truck, cause of American variation from European sys- tems, 262. early advantages of, 261. Boliman, inventor of type of bridge truss. 262. Bonds, railroad, table of productive and non-productive, per mile of road, 316. Bonds. (See also Capital, and Income Bonds.) Books, use of, by railroad men, 277. Booth, Henry, Treas. Liverpool & Manchester Ry., originator of tubular boiler, 260. Boston & Albany R. R., Mr. F. D. Adams, M. C. B. of, 39. Boycott, the response to lockouts. 87. Boylston, S. C, member advisory board, " Plant System," 170. Brakes, improvement in. 300. Braithwaite, locomotive inventor, 259, 261. Bridge accidents, causes of. 244. Bridges, necessity for guard-rails on, 245, 246. 344 INDEX. Bridges, pin-connected, BoUman and Fink types of, 262. British hospitality to American delegates to International Ry. Congress, 292. Broken rails, over one-third of derailments caused by, 242. Brunei's part in the " battle of the gauges," 261. Bryant, quotation from, 225. Budget, establishment of, on " Plant System," 161. amount of, in 1884, 166. Butting collisions, standard code of telegraph rules a means of preventing, 67, 246. statistics of, 229 et seq. Canada Southern R. R., Mr. Sutherland of, first announced principles of auto- matic couplers, 42. Canals vs. railroads, 223, 224. Capital and labor, relations of, 87. Capital invested in railroad enterprises, amount of, 269. increase of, 1889-93, ll4. Capital (railroad) in stock and bonds, 1895, 311. per mile of road, 315. proportion of dividendless, 1888-95, 332. statistics of earnings upon, 1888-95, 340. Capitalization of American railroads, percentage of entire net earnings upon, 1895, 317. per mile of road, decrease of, 1888-95, 316. Car-axles, report on, to advisory board, " Plant System," 174. Car capacity increased— tonnage decreased, 321. Car-couplers, action of Interstate Commerce Commission on, 51. Massachusetts Railroad Comm'rs on, 45, 227. Michigan Railroad Comm'rs on, 51, 52. address on, 38. automatic, earliest official recognition of value of, by F. D. Adams, M. C. B., Boston & Albany R. R., 40. first announcement of principles of, by Mr. Suther- land, 42. investigation of, by Mass. Legislature, 44. report on, by Com. M. C. B. Asso'n, 41. sought by railroads previous to legislative investiga- tion, 43, 44. change of, vast cost involved in, 56. choice of, by railroad employees, vs. competency of M. C. B. experts, 58. committee of M. C. B. Asso'n, report of, on, 46. different kinds indorsed for trial by M. C. B. Asso'n, 46. freight-car, compulsory legislation concerning, 38. Janney, recommended by Mr. Wilder, 46. Janney type of contour-line for, adopted as standard by M. C. B. Asso'n, 48. link-and-pln type of, actually preferred by its maimed users, 56. link-and-pin, useless with power brakes on freight-trains, 47, 48. Mass. Legislature's action concerning, 43, 46. M. C. B. type of, difficulties in coupling, with link and pin, 57. first so called at their meeting of 1888, 49. formally adopted, 1889, 50. approved by Am. Ry. Asso'n, 1890, 51. INDEX. 345 Car-couplers, M. C. B. type, increasing use of, 60. number of cars equipped with, 56. Miller hook, recommeuded by Mr. Wilder, 46. popular vote of employees on, vs. M. C. B.'s 20 years' careful research, 55-58. public trial of, at Buffalo, 1885, 47. recommendations of President to Congress concerning, 58. safety, L. S. & M. S. Ry. first to try, 44. principles of, first fixed by railroads, 44, 45. R. R. comm'rs convention's action upon, 51, Safford draw-bar recommended by Mass. R. R. Comm'rs, 45. that would not intercouple "prescribed" by Mass. R. R. Comm'rs, 47. " the most popular," 54. uniform, benefits of M. C. B. Asso'n's action concerning, 306. committee on, suggested by Mr. Forney, 40. congressional bills for adoption of, 55. uniform height for, fundamentally necessary, 41. first suggested by Mr. F. D. Adams, 39. vertical-hook type established, 49. plane, suggested by Mr. Wall, 46. vote on, by N. E. railroad employees favored link-and-pin type, 57. yardraaster's (N. Y. C. & H. R. R. R.) action on, 41. Car department (S., F. & W. Ry.), expense of, 167 et seq. mileage, committee on, of Am. Ry. Asso'n, 20. platforms (pass'r), uniform height for, fixed by M. C. B. Asso'n, 40. service, equitable compensation for, 20. greater average mileage of, 20, 21. mixed system of compensation for, 21. " per diem " charge for, 21. Cars, freight, better service from, needed, 268. development of, 302. small daily mileage of, 268. passenger, improvements in, 299. total number of, per mile of line, 323. Car-truck springs, evolution of, 300. Chalk-mark of the car-inspector, power of the, 60. Charleston & Savannah Ry., advisory board of, established, 165. constitution of, 168. rules for flagmen on, 254. Chicago, Am. Ry. Asso'n's meetings in, 76, 84. Chief of train and of station service responsible to Supt. of Transportation, 134. Classification of freight rates, statement to Committee of U. S. Senate concern- ing, 187 et seq. railroad accidents, 227 et seq. expenses, 207. Coal-cars, rental of, 21. Collisions, at crossings and stations, how prevented, 241, 242. causes and casualties of, in detail, 250, 252. in railroad accidents, proportion of, 231. rear, passenger-train more often the rear train in, 283. places of occurrence of, 234. special classification of, 233. . , 346 IJSTDEX. Collisions, standard code rules for preventing butting, 241. statistics of, rear and butting, 2:;i9 et seq. table of, in the United States, 2:39. frequency of, 230. (See also Rear Collisions and Butting Collisions.) Columbian Exhibition, effect of, on passenger traffic, 115, 117. Committee, American Railway Association, on block-signals, etc., work and difficulties of, 67, 68. (joint) on train rules, interlocking, and block-signalling, 74, 84, 86. on car mileage, 20, on safety appliances, scope of, 22, 10, 72. on standard code of train rules, 16, 62. scope and duties of, 62, 63, 67, 70, 74. Committee (M. C. B. Asso'ni on automatic freight-car couplers, report of, 46. Committees (standing), of American Railway Association, 16. their methods of investigation, 84. Committees of advisory board, " Plant System," repoits of, 171 et seq. Competition, between canals and railroads, results of, 223, 224. fierce, the logical outcome of perfected railroad construction and methods, 267. passenger, vs. better service, 124. reckless and fraudulent, evils of, 333, 334. ' unrestricted, legal remedy for, suggested, 215. Competitive business, a simple problem in, 28. benefits of, to local shippers, 195, 196. classes of, expenses governing rates for, 32. combination of carriers for, justifiable, 197. discrimination in favor of, existed before railroads, 220. helps to pay expenses otherwise borne by local traffic, 30. how to ascertain if it pays or not, 27, 28, 32. illegally obtained, effect of, 334. pooling agreements for, 187. rate-cutting for, disastrous policy of, 103. freight traffic, a simple problem in, 28. rates, how fixed by Georgia R. R. Commission, 194. Compound locomotives, 284. Compressed air for sub-aqueous foundations, 264. ComtroUer, early necessity for, on " Plant System," 160. Compulsory legislation concerning safety appliances, 38, 39, 51, 58, 59. congressional, on automatic couplers, 51, 58, 55. interference of, not needed as to safety-couplers, 55. the car-inspector's chalk-mark the only kind needed, 60. unreasonableness of, as a rule, 59. Conclusions as to present value of railroad property in the United States, 331. Conducting transportation. See Transportation. Conductor of American trains compared with English " guard," 305. his relations with railroad patrons, 139. Conductors, number of, 1893-95, 328. Congress, act of, cannot fix railroad tariffs, 213. concerning railway safety appliances, 298. bills in, concerning automatic couplers, 55. service of Am. Ry. Asso'n before committee of, 141. should not require unifoim system of railway accounts, 221. Consolidation of railroad corporations, dangers attending, 184. IKDEX. 347 Contracts for maintaining competitive rates should be legalized, 197, 198, 206. Conway car-coupler, trial of, by M. C. B. Asso'n, 46. Cooperation, advantages of, to Am. Ry. Asso'n, 82. characteristic of our present civilization, 78, 82, 95. value of, in considering questions of railroad management, 76. CoSperative management (railroad) advantages of, 176. federative plan of, 184, 185. Cost and revenue per freight-train mile, 123. per passenger-train mile, 125. average, per passenger-mile, 119. per ton-mile, little value in knowing, 28. how ascertained in a transaction in competitive freight, 35. Cost of conducting transportation, 122. increase of, 125. contrasted with cost of maintenance of way and equipment, 325. Cost of operation, details of, 322. per mile of line, 323. train service should be reckoned by car-miles, not ton-miles, 104. traffic (passenger and freight), etc. (See Tables.) traffic per ton, passenger and train mile, statistics of, 1888-95, 339, transportation, difficulty in arriving at, 202, 203. J theoretical and practical methods of determining, 204. 1 the three elements of, 31. Cost of transportation service on American railroads, 106. Cost per passenger-mile, in detail, 1889-93, 124. train mile in cents, 125. per train-mile not proportionately reduced by equipment of greater capa- city, 123. specific, of competitive freight-haul in relation to local, 211, 212. of transportation should include maintenance of certain struct- ures, 213. betterments not included in, 213. unit of operating, cannot be much further reduced, 81, 93. units of, practical value of, 35. Coupling-rod, the, an efficient safeguard, 56. Cowell car-coupler, approved for trial by M. C. B. Asso'n, 46. Craig, J. W., member advisory board, "Plant System," 170. Crossing collisions, inexcusable, 241, 242. protection by interlocking, 73. Danger signals, rules for use of, on " Plant System," 254. Defects of road and equipment, accidents from, 229 et seq. track causing derailments, classified, 242. Delaware & Hudson Canal Co., Rastrick's locomotive for (1829), 260. Demurrage, definition of, 21. Departments of a railroad, classification of, 100. functions of, 129. Derailments, at switches, how prevented, 246. causes and casualties of, 250, 252. classified, 242. defects of track causing, 242, 243. due to defects of equipment, 243. negligence in operating, 243. 348 INDEX. Derailments, frequency of, 230. from bridge defects, classified, 244. unforeseen obstructions, classified, 844. , in the United States, 229. proportion of, in railroad accidents, 228. Derails on sidings, recommended, 246. protect cars from fouling main line, 241. Detailed causes of railroad accidents, table of, 250 et seq. Devices, the three, making the success of the locomotive, 260. Differences of opinion as to the block system, 69, 70. Discipline (railroad), address on, 8. a higher view of the question of, 15. as affected by labor organizations, 4. field for improvement in, 246. increasing difficulty in enforcing, 247. meaning and object of, 8, 9. methods of, 5, 6. necessity for, 4. newspapers and pubUc opinion should support, 14. office of, to ennoble— not degrade, 14. should be enforceable by the courts, 14. travelling public interested in enforcement of, 14. usefulness of, to the employee, 14. Discrimination in favor of competitive traffic existed before the railroads, 220. freight rates, definitions and illustrations of just and unjust, 187, et seq. rates, statement of, before U. S. Senate Committee, 187. different classes of, permitted by Georgia R. R. Comm'n, 190 et seq. just and unjust, definition of, 196. unjust, in rates, the crime of, 334. percentage of net earnings lost by, 335. public opinion a bar to reform in, 334. the remedy for, 335. Discussion, value of, in acquiring railroad knowledge, 277. Distant signals for switch-protection, 241. (See also SIGNALS.) Distribution of expense accounts, 27. Dividends, railroad, paid in 1891, 268. 1892, 102. 1895, 314. per cent on stock actually paid, 1895, 316. Division superintendent, all railroad operations on his division should be under his supervision, 138. his authority and responsibility, 136. his relations to roadway and machinery departments, 137. his relations with the public, 139. represents chief engineer and mech. supt. on his divi- sion, 138. should have large discretionary powere, 139. Double-order system of train-dispatching, 83. Draw-bars and buffers. See Car Couplers. Drawbridge protection by interlocking, 73. Drawgear, accidents from defects of, 234. INDEX. 349 Drawbacks. See Rebates. Earnings and expenses, per mile of line, decrease of, 1888-95, 321. Earnings, annual increase in (freight and passenger), compared, 117. fluctuations of, 1888-95, 332. gross and net, per mile of line, 1888-95, 339, 340. division of, between employee and stockholder, 90. irregularity of increase in, 109. net (freight), for several years, 110, 112. percentage of freight and passenger to gross, 120. traffic, analysis of, 1888-95, 338. (See also Freight, Passenger, and Net Earnings.) Electric motors, 268. Emerson, quotation from, 15. • Employees, differences of, with employers, 87, 89. a rational adjustment of, 94. difficulties in dealing with, by railroad companies, 90 et seq. distribution of, in transpoi-tation dep't, 328. duty of enforcing rules for, 12. examinations (preliminary) of, 10, 11. material for, and discipline of, 5, 6. number discharged in different departments, 1895, 330. number of (total), in 1889-95, 326. in general administration department and per mile of line. 1890-95, 329. prerequisites for advancement of, 11. qualifications, fundamental, of, 10. raw materials of, 9. relations of railroad corporations to, 5, 269. rewards and punishments for, 12. suggestion to make organizations of, responsible, 94. the first occupations of, 9. total number of, per lOO miles of line, in the different departments, 327, 328, training of, in knowledge of rules, 11. train, average annual mileage of, 329. Empty-car mileage, effect of, on average train-load, 123. Engineer, civil, should be head of roadway dep't, 131. Engineers, civil, alone first selected as railroad managers, 96. Engineer of train, how informed if train is in block ahead, 67. must be informed when space- interval is encroached upon, 235. responsible, rather than flagman, for rear protection, 236, 237. should use fusees, and protect train against collision, 19. Enginemen and conductors on "Plant System," responsibility of, for protect- ing train, 256. Enginemeu, station collisions of, cause of, 241. total number of, 189:3-95, 328. England, impressions of, 292. English practice in cases of railroad foreclosure, 183. railway-carriage contrasted with American car, 304. Equipment, cost of maintenance of, 324. defects of, causing derailments, classified, 213. freight, greater capacity of, not reducing cost per train-mile, 123. 350 INDEX. Equipment, trust obligations, amount and character of, 311, 312. Ericsson, competition of, in locomotive trial, L. & M. Ry., 258, 259. coupled driving-wheels used by, 261. Erie canal maintained at expense of tax -payers, 223. railroad, telegraphic order system first used on, 264. Esprit de corps among railroad employees, 5, 13. Essential requisites for block systems, 70 et seq. Expenses, classification of, an aid to economy, 33. differences in classification of, 323. division of same among different departments, 101. estimates of (Budget), on " Plant System," 161, comptroller's statement of actual, compared with, 161, 164, 169. general, disproportionate increase of, 122, 124, 125. more correct distribution of, 325. of operation, classification of, 26 et seq. and maintenance, five classes of, analyzed as to amount of business, etc., 207 et seq. operating, hovsr varying with amount of traffic, 208. of a railroad, 96. percentage of pay-rolls to, 90. reduction of, analyzed, 97 et seq. ' an example of, 98. special, of freight and passenger business, enumeration of, 209. (See also Cost, and Operating Expenses.) Extortion, charge of, not applicable to railroad rates, 187. European and American railway systems compared, 295, countries, colonies of, an outlet for their railroad enterprise, 144. railway officials'' iuappreciation of American methods, 293. Federative plan of railroad cooperative management, 184, 185. Fencing, railroad, need of, to prevent cattle accidents, 244. Fertility of resource, characteristic of typical railroad man, 80. Fink, Albert, bridge-truss inventor, etc., 262, Firemen, total number of, 1893-95, 328. Fires on trains, cases of, classified, 245. Flagman, a makeshift protection against rear collisions, 17. duties and difficulties of, 17, 18. duties of, most important, if often ill-performed, 18, inefficiency of, in keeping safe space-interval between trains, 235. often the least experienced man of the train-crew, 18. rear, failure of, to obey rules, collisions from, 236, prescribed duties of, 236, rules governing, on " Plant System," 254. Flagmen, etc., total number of, 1893-95, 3--'8. Flanged wheel, Jessop, inventor of, 259. Fleming, R, G., member advisory board, " Plant System," 170. Foreclosure, English and American proceedings in, 183, 184, Forney, Mr. M. N., committee on uniform car-couplers, first suggested by, 40, test of automatic couplers by, 46, Forty years of railroad service by author, 271. Franklin's precepts a foundation of prosperity, 281. Free passes, abuse of, 127, Frey, Mr, J. J,, delegate to International Railway Congress, 291. INDEX. 351 Freight and passenger business, relative amount of per mile, 120. special expenses of, 209. Freifi:ht and passenger departments of railroads, 100. expenses of, on S. F. & W. Ry., 166, 167. Freight-cars, average daily load of, 20, dead-vi'eight of, reduced to half the load-weight, 302. problem of greater mileage from, 268. total number of, in use, 20. value, capitalized, from increase in mileage of, 20. Freight earnings compared with ton-mileage, 1889-94, 114. decrease of, 1893-94, 109. increase of, 1889-93, 110. net, decrease of, 1893-94, 112, 113. table of, annual, for five years, gross, 109. net, 110. (See also Earnings.) Freight per ton-mile, reduction in, 116. Freight rates, classification of, statement concerning, before Committee of U. S. Senate, 187. as adopted by So. Ry. & Steamship Asso'n, 188. (See also Rates and Tariff.) Freight traffic— rate, cost, and net per ton-mile, compared, 121. revenue and cost. See Tables. Freight-train accidents, classified, 233. from train-parting, 233, 234. Freight-train mile, revenue and cost per, 123. tonnage decreased— car capacity increased, 321. Fusees, time, advantages of, as protection against rear collisions, 19, 20, 237. rules for use of, on " Plant System," 254. should be dropped by engineman when train slows or stops, 19. Gadsden, C. S., member advisory board, " Plant System," 170. Gauge, change of, on Southern roads in one day, 60. General manager, relations of, to subordinate officers, 138. (See also Advisory Board, and Railroad Managers.) General Time Convention. See American Railway Association. Georgia Railroad Commission, action of, on freight tariffs, 190. dilemma of, in fixing competitive rates, 194. Georgia Railroad Co., charter of, concerning freight, 188, 189. Government control of railroads, 7. Gould, car-coupler device of, 264. Griffiths, Mr., remarks of, on failure of car-couplers, 42. Gross earnings, freight and passenger, 1895, 312. (See also Earnings and Freight Earnings.) Guard-rails for bridges, necessity for, 245, 246. Hackworth, locomotive inventor, 259. Haines, Geo. W., member advisory board, " Plant System," 170. Harahan, Mr. J. T , delegate to International Railway Congress, 291. Hardee, W. P., member advisory board, " Plant System," 170. Harrison, President, message of, on uniform couplers and brakes (1890), 53. Haul, average, freight and passenger, decrease of, 123, 125, 381. (See also " Long and Short Haul.") Head of a railway system, principal duty of, 157, 158. 352 INDEX. High-speed passenger-trains, requirements for, 266. Home signal. See Signals. Hopkins, Mr., of N. Y. C. & H. R. R. R., on automatic couplers, 41. Human fallibility, a defect in block-signal system, 71, 72. Income bonds, railroad, amount and character of, 311, 312. considered as investments, 314. Inspection, closer, of running equipment, a remedy for derailments, 243. needed in railway no less than in military service, 248. should be thorough and timely, 12. Interest, railroad, amount paid per mile of line, 318. in 1895, 314. percentage of, actually paid in 1895, 316. Interlocking, development of, and rules for, 74. International Railway Congress, address concerning, 140. delegates to, presented to the Queen, 293. London meeting of, American railway influ. ence at, 146, 147. opened by Prince of Wales, 293. next (Paris) meeting of, in 1900, 295. oflflcial language of, 291. organization, meetings, and administration of, 290. relations of Am. Ry. Asso'n with, 142. Russian members of, desirous of holding meet. inginU. S., 295. should be invited to meet in America, 147. suggestions concerning, 297. value to America of special meeting of, if held in U.S., 295. Interstate commerce, how protected by natural water-routes of the country, 224, 225. Interstate Commerce Commission, convention of State R. R. Commissioners on couplers called by, 51. facts proved by reports of, for eight years, 332, 333. reports of, concerning coupling accidents, 1890, 52. report of, for 1896 (value of railroad prop- erty), 308. report of, on accidents, but partial, 227. statistics of, on railroad mileage, 114, on revenue and cost (1888-94), 106 et seq. concerning dividends, trafiBc, etc., 1892, 102. Statistics, traffic, of, on what mileage based, 114. summary and analysis of, con- cerning railroad expenses, 121. traffic agreements, legalized, should be filed with, 336. Interstate commerce legislation, within what limits advisable, 225, INDEX. 353 Interstate tariflfs, establishment of, 207. points to be considered in relation to, 212. Investment capital in railroads, increase of, 1889-93, 114. per mile of road, 115. Investments, railroad, paying, 315. total returns on, 1895, 314. Iron rails, disappearance of, 263. Iron trade, scale of wages in, 88. Jackson, O. W., member advisory board, " Plant System," 170. Japan, inquiry of, concerning American railway methods, 146. Janney, automatic close coupler, inventor of, 264. Car Coupling Co., waived patent on contour-lines, 48. coupler approved for trial by M. C. B. Asso'n, 46. adopted as standard by M. C. B. Asso'n, 48. contoxir-lines approved for standard by M. C. B. Asso'n, 48. Jervis bogle truck, advantages of, on American roads, 261. Jessop, inventor of flanged wheel, 259. Juries do not sufficiently regard infractions of train rules, 247. Justice necessary in dealing with employees and discipline, 13, 14. Kingsbery, S. T., member advisory board, " Plant System," 170. Kirby, John, M. C. B., L. S. & M. S. Ry. Co., remarks of, concerning self-coup- lers, 41. Labor and capital, relations of, 87. Labor organizations, address on, 84. attitude of railroad corporations toward, 85, 92, 269. effect of, on railroad discipline, 4. should be incorporated and held to contract obligations, 94. support of, in coupler legislation, 55. Legislation against railroads, cause of, 272. class, would result from subsidizing canals, 224. compulsory, regarding safety appliances, 38, 39. congressional, asked for, as to safety couplers, 51, 53. interstate commerce, to what extent desirable, 225. Massachusetts, as to safety couplers on new or repaired cars, 43, 46, 51. failure of, 51. suggested, concerning violation of train rules, 15. (See also Compulsory Legislation.) Lee, J. Moultrie, member advisory board, " Plant System," 170. Liens upon railroad property, classes of, 312. " Light Railways "—American roads so considered in Europe, 294. Link-and-pin couplers useless on freight-trains with power brakes, 47, 48. type of coupler demanded by employees' representatives, 56. probable reasons for the anomaly, 56. Litigation, railroad, evil character of, 181. Liverpool and Manchester railway, first freight-train on, laden with American cotton, 260, Henry Booth, treasurer of, and the tubular boiler, 260. locomotive trials on, 258. original gauge of, universally adopted, 261, 364 INDEX. Local business, classes of expenses that it should pay, 32. must help make good the loss on competitive business, 30, 37. should pay sufficient toll to maintain road, 30, 195, 207, 212, 213. freight rates, reasonable basis of, 203. shippers, and freight adjustments, 213. low through rates not unjust to, 189, 195, 196. no distinction of rates between, except as due to specific cost of transportation, 220, 221. relation of, to long-haul shippers, 104. should be legally protected against injurious competitive busi- ness, 31. Lockouts— the sequel to strikes, 87, 88. not applicable in the case of railroads, 90. Locomotive department, expense of, on S., F. & W. Ry., 162, 167 et seq. less field for economy in, 268. development of, 259, 260. increased capacity of, as affecting passenger and freight service, 320. tubular boiler of, suggested by Henry Booth, 260. explosions, etc., 244. mileage, cost of, as affecting through rates, 29. oil-feeders, report on, to advisory board, " Plant System," 171. Locomotives, total number of, and per mile of line, 323. London, vast capital on deposit in, 292. Long and short haul, idea of, based on average ton-mile fallacy, 104. how local shippers should regard, 30, 31. rates for, 218. Long-haul freight, smaller proportion of, in 1895 than in 1889, 321. Lake Shore & Michigan Southern Railway, first to experiment with safety- couplers, 44. remarks of Mr. Kirby, M. C. B. of, on car^couplers, 41. Machinery department, description of, 100, 129, 133. expense of, on S., F. & W. Ry.. 162, 166 et seq. head of, how designated, duties, etc., 133. management of, 155, 156. Maintenance of equipment, cause of decreased cost of, 325, 327. cost of, per mile of line, 1889-95, 324. train-mile, 324. Maintenance of way, causes of decreased cost of, 323, 325, 327. department of, reduction of expenses largely falls upon, 121. engineer of, his duties and staff, 132. (See also Roadway Department.) Management. See Railroad. Margin of profit between rate and cost, approaching zero, 309. decrease in, 206, 267, 308. per ton-mile, 7, 121. Massachusetts legislation concerning car-couplers, 43, 46, 51. investigation as to safety-couplers, 44. Railroad Commissioners, accident report of, 227. advice of, as to rate of coal transpor- tation, 204, 214. report and recommendation of, on safety-couplers, 45, 46. INDEX. 355 Massachusetts Railroad Commissioners, report of (1891). on employees' choice of automatic couplers, 57. Master car builder of to-day, the, an engineer, architect, and artist, 300. Master Car Builders' Association, action of, on freight-car couplers, 306. address before, at Saratoga, 1896, 298. committee of— report on automatic couplers, 41. first to be interested in uniform couplers, 39. good work done by, 298. remarks by Mr. Garey, president of, on self- couplers, 41-48. Master Car Builders' standard axle, journal-box, and body-bolster, establish- ment of, 304. type of safety-coupler, formally adopted, 1889, 50. approved by Am. Ry. Asso^n, 1890, 51. fitly named, 49. used on over 200,000 cars, 56. Macadam roads, reference to, 258. McConway's automatic close couplers, benefits of, 264. McKee, H. H., member advisory board, " Plant System," 170. McKee, W. B., member advisory board, " Plant System," 170. McSwiney, E. P., member advisory board, "Plant System," 170. Mechanical superintendent, his duties and staff, 133. Michigan Railroad Commissioners' approval of M. C. B. coupler, 51, 52. Mileage and earnings, increase and decrease in. 111. of railroads in United States, increase of, 1889-94, 114. 1888-95, 331. mostly single-track, 67. statistics of, 1888-95, 339. total, 265. train, increase of, in passenger over freight, but with less proportionate revenue from, 320. Miller hook (car-coupler), 46 Minimum rates, how ascertained on S., F. & W. Ry., example of, 210. Minutes of advisory board to general manager, " Plant System," 170 et seq. Mitchell car-coupler, approved for trial by Com. M. C. B. Asso'n, 46. Mixed trains, railroads first operated with, 79. Moran, of Erie R. R., originator of telegraphic order system, 264. Morel, C. T., member advisory boai d, " Plant System," 170. Net earnings, accelerated decrease of, 321, 322. changes in, 1892-94, 113. distribution of, 1895, 313. from railroad operations, in 1895, 313. method of ascertaining, for 1895, 313. passenger, increase and decrease. 1889-93, 118. Net revenue per passenger- and freight -train mile, 1888-95, 319. Newspaper abuse of railroad companies, 6. unfounded criticism of. 39, 44, 49. Newspapers should advocate punishing by law any violation of train rules, 15. New York, Am. Py. Asso'n meetings held at, 76. N. Y. C. & H. R. R. R., Mr. Garey 's remarks on self -couplers, 41. Theo. Voorhees, Gen. Supt. of, moved adoption of M- C. B. type automatic couplers, 50. 356 INDEX. New York Central System, an example of railroad growth, 271. N. Y., L. E. & W. R. R.— Mr. Wilder's recommendation of uniform couplers, 46. Obedience to orders, prompt, as necessary in railroad as in military service 247. Officials, transportation, remarks on promotion of, 263, 265. Operating department, management of, 1.56. expenses of a railroad, address on, 96. classification of, analyzed, 99 et $eq. percentage of pay-rolls to, 90. relations of, to dividends, 97. (See also Expenses and Cost.) negligence in, derailments caused by, classified, 843. Operation, railroad, cost of, in detail, 322. per mile of line, 323. departments of, classified, 100. expense of, classified, 26 et seq. lowest unit of cost of, nearly reached, 81. Orders, better enforcement of, needed, 247, 248. Organization, railroad, address on, 128. difference between present and past, 155. Passenger and ton mile, futility of units of cost of, 310. cars, American type of. and improvement in, 264, 299. problem of reducing dead-weight in, 303. earnings, annual increase of, 1889-93, 117, 119. decrease of, in 1894, 117. net, for 1894, compared with 1893, 118. increase and decrease of, 1889-93, 118. outlook for, 118. (See also Earnings ) mile, absurdity of considering it an equivalent of ton-mile, 34. average cost of, a misleading basis for tariffs, 25, 29, 35. per, in cents, 119. ; revenue and cost per, 1889-94, 115. r unexpected increase in cost per, 124. Passenger-miles, total increase of, 1889-93, 116, 117. Passengers per passenger-mile, reduction in, 116. Passenger service, cost of, compared with freight, 35. traflQc, annual increase of, 1889-93, 116. revenue and cost of, per passenger-mile, 116. (See also Tables.) total increase of, 1889-93, 117. volume of, during 5 years, compared, 116. train accidents, statistics of, 233. mile, revenue and cost per, 125. Patriarchal railroad management, a thing of the past, 155. Pay-rolls, percentage of, to operating expenses, 90. P , C. & St. L. Ry — Mr. Wall's motion for vertical plane-couplers, 46. Penalties for employees' shortcomings, 12, 13. Percentage of different classes of R. R. accidents, 228. Permissive brock system. (See Block-signal System.) Personal injuries from R. R accidents, causes of, classified, 249, 250. Persons killed and injured in R. R. accidents, classified, 248 et seq. Plant, Mr. H. B., president, etc., 158. INDEX. 357 '• Plant System," advisory board of, 153, 165, 168, 177. auditing of accounts on, 160 et seq. expenses of, estimated and actual, 161, 164, 167. organization and management of, 158, 159 et seq. rules Koverning flagmen on, 254. Pooling agreements for competitive business, 37. propriety of legalizing, 215. statement concerning, before Com. U. S. Senate, 187. value of legal recognition of, 216. system, defense of, 198, advantages of, if legalized, 200. 1 ools, effect of prevention of, 7. i'opulation, increase of, gaining on country's resources, 280. Prendergast, F. S., member advisory board, "Plant System," 170. President of United States, recommendations of (1890), concerning uniform brakes and safety-couplers, 52. Promoters of railroads, their day over, 331. Protection of industries contrasted with needs of railroad employees, 333. trains by other agency than train-men, 66. Public opinion a bar to legal remedy against unjust discrimination in rates, 334. concerning safety appliances, 38. railroad managers, 180. should sustain railroad discipline, 14, 247. railroads in maintaining rates, 197. Publicity of rates a reasonable requirement, 205. Pullman sleeping-cars, a necessity in long-distance travel, 263, 299. Purchasing department of railroads, 131. Queen's garden-party at Windsor, in honor of International Railway Congress, Railroad accidents, causes and safeguards of, address^p, chiefly caused through disobedjeilce of employees, 847. (See also Accidents.) ■ Branch Y. M. C. A. (New York), address before, 271. Commissioners, Massachusetts, accident report of, 46, 47. rtion of, on car-coupling problem, 827. (authorized to investigate subject of self-couplers, 44. \ report on, 45. report of, January, 1891, 57. special advice of, on coal transporta- tion, 204, 214. Georgia, on uniform freight classification, 189. / station-grouping ignored by, in making tar- iffs, 190. Michigan, action of, on automatic couplers, 51, 52. state, meetings of, 1890, 1891, 51, 52. ^^„^- corporations and their employees, relations between ,'"^76. abuses attending consolidation of, 184. attitude of, toward labor organizations, 85, 92, 269. divisible into two parts : corporate and operating, 128. do not " sell " transportation, 218. 358 INDEX. Railroad Corporations federation plan of management of, 184, 185. functions and obligations of, 89, 90 et seq., 93, newspaper abuse of, 6. relations of, with the general public, 6. reputation of, what classes of officials make or mar, 138. Day, World's Columbian Exposition, address on, 258. development, its past, present, and future, 258. discipline, a way to encourage esprit de corps, 5. how disturbed by labor organizations, 4. necessity for, 4. (See also Discipline.) employees, advancement of, prerequisites for, 11. application of military principles in handling, 6. condition and early experiences of, 272. corporation duties and benefits to, 6. essential qualifications of, 10. faithful supervision of, necessity for, 12. preliminary examinations of, 10, 11. raw materials for, 9. relations of, with railroad corporations, 5. selection, training, and discipline of, 5, 6. system of re-wards and punishments for, 12. thorough knowledge of rules indispensable in, 11. (See also Employees.) engineers, Euiopean, not favorably impressed with American railroad practice, 294. Gazette, accident statistics of, 227-228. legislation, federal and state, 6. life, the way to eminence in, 307. man, a : his training and character, 271. surer than others of steady employment, 281. typical, characteristic of, 80. managers, change in scope of, 265. civil engineers, the first, 96. responsibility and mental isolation of, 77. management, efficient, article on, 153. federal type of, the best, 157. over-centralization in, to be guarded against, 157. value of cooperation in questions of, 76. men, three classes of— bad, steady, restless, 273-275. mileage in U. S., total, and increase of, 1888-95, 265, 331. more miles of, centering in Chicago under fewer managers than else- where, 78. operations in 1895, financial results of, 311. organization, address on, 128. departments of, 129, 130. improvement in, 265. on large roads, 135. problems of the past, 259. present, 262. future, 266-269. supplies, departments of, 131. system, proper organization of, 4. the, of the U. S., substantially completed, 831. INDEX. 350 Hailroad system, wonderful extension of, in America, 262, tariffs, fallacy of using rate and cost per ton and passenger-mile in establishing, 25, 28. how determined, 25. problem of making, 24. (See also Tariffs.) Railroads, American, rates of transportation and cost of service on, 106. beneficiaries of, should pay cost of operation and mainte- nance, 30. consolidation of, tendency to, 153. analogy between law of gravity and, 154. government control of, 7. objects for which they are built, 29. private ownership of, criticisms on, 182. state control of, 178. support of, primarily from local, next from competitive, traffic. 207, 212, 213. Rail, development of the, 259. Rails, steel, development and economy of, 263, 323. Railway capital, amount of (1895) in stock and bonds, 311. carriage, English, evolution of, 304. employees, number and distribution of, 1889-95, 326 et seq. mileage of the world, distribution of, 143. Review, contribution to, on railway management, 153. Rastrick's share in locomotive development, 259, 260. Rate and cost per mile of passenger traffic, 116. ton-mile, 1893-94, 112. average, per ton and passenger mile, of little practical value, 25, 29. cutting, how affecting operating expense account, 101. remedy against, 103, 104. for long and short haul, 218. great results from small changes in. 111. margin between, and cost per ton-mile, 7, 121. decrease of, 206, 266. on coal, Mass. R. R. Commrs.' advice as to, 204. per ton-mile, compared with cost, 93, 112. and passenger-mile, decrease in, 1889-95, 332. Rates, classification (uniform) of, 816, 217. competition in. difficulty of adjusting, 179. contracts for maintaining, should be legalized, 126, 197, 198, 215-218. decrease of, more rapid than decrease of cost, 310. discrimination in, 6, 7. freight, railroad owners and managers should oppose further reduction of, 113, 114 in certain cases, to be charged regardless of distance, 189. just and reasonable, 200. legalizing contracts to maintain, 215, 216. 218. local and competitive, reasonableness in their origin and development, 201-203. local, should rest with iocal management, 185. lower, through, not unjust to local shippers. 189, 196. maximum and minimum, uselessness of establishing, 206. minimum, illustration in ascertaining, on S., F. & W. Ry., 210, official agreements to maintain, should be upheld by law, 385. 360 INDEX. Rates, official agreements to maintain, benefits of, 336. no public injury would result from, 336. of transportation on American railroads, 106. continuing tendency to lower, 318. publicity of, desirable, 205. should not be changed without notice, 205. shrinkage of, on competitive traflRc, 102, 103, the only sound reason for regulation of, by law, 31. uniformity in, not desirable, 212. (See also Freight Rates and Tariffs. ) Rear collisions, engineer of train, rather than flagman, should protect against, 19. greater number of, are between freight-trains, 66. improvement in rules to prevent, 16. prevention of, by space vs. time interval, 18. by fusees thrown off by engineer, 19. statistics of, 229 et seq. (See also Collisions.) Rebates and drawbacks, cases in which they could be properly allowed, 214. secret, how to abolish, 126. . injustice of, 200. penalt}' for, recommended, 205, 215, 219. to favored shippers, denounced, 334. ! Rebate system, condemnation of, 108, 199. Receiverships, railroad, effects of, 183. Recreation, rational, advice concerning, 283. Reduction in revenue, cost, and profit per ton-mile, 106. Reed, H. W., member advisory board, " Plant System," 170. Refrigerator-cars, report on, to advisory board, " Plant System," 178. Relation (percentage) of expenses to business done, 209. Relations between railroad corporations and their employees, 5, 269. the public, 5. Revenue and cost per freight-train mile, 122. passenger-train mile, 125. freight, average, per mile of road, 126. in cents per ton-mile, 106. from passenger and freight traffic. See Tables. passenger and freight, per mile of line, 320. (average), per mile of road, 127. per train-mile, how to increase, 127. railroad, loss of, in 1889-95, a calamity, 333. Reversal of volume of railroad business and profits, 108. Repairs and improvements, decrease of, 1893-95, 380. of equipment, apparently neglected in 1895, 327. Reports to government, annual, of interstate roads, proper form and items of, 221, 222. Retrenchment, solution of problem of, on " Plant System," 159 et seq. Responsibility, division of, should be clearly defined, 128. Rewards and punishments, how to administer, 12, 13. Riley, G. M. D., member advisory board, " Plant System," 170. Roadmasters' Association of America, address before, 286. value of, to its members, 287, 289. Roadmaster and track-foreman, the, address on, 286. duties of, 138. INDEX. 361 Road-supervisor, proper length of road under care of, 133. Roadway department, description «)f , 100, 129, 132. head of, 131. little room for furtlier economy in, 268. management of, 155. strict discipline most necessary in, 287. subdivisions of, 131. Rolling-stock department, description of, 129. Routing freight shipments, 215. Rules governing rear flagman on " Plant System," 254. train, etc. See Standard Code, etc. in case of unusual stops, 255 et seq. Russia, continental railroad system of, 145. Safety appliances, address on, 38. committee on (Am. Ry. Asso'n), 22. importance of, 2. public interest in, cause of, 38. supplementing block-signals, 73. Safety appliance standards, uniformity in, 306. Safeguards, practicable, against railroad accidents, 227. Safety-coupler, "the most popular," 54. Saflford draw-bar, recommended by Mass. R. R. Comm'rs, 45. Self-control and thoroughness, necessary qualities for railroad advancement, 276-277. Senate, U. S., statement before committee of, on freight rates, pooling, etc. , 187 et seq. Savannah, Florida & Western Railway Co., advisory board of, 165, 168. departments of, 162, 166-167. estimated and actual expenses of, 161-164. organization of, 158. Shippers, at competitive points, protection of contracts with, 200. competitive (or through), are a benefit to local shippers, 195. are in different position from local, as to rates, 31. large, concessions to, 218. local, should be interested in their road's having a profitable compet- itive business, 31, 195. right of, to select their lines of transportation, 215. smaller, maintenance of rates for protection of, 126. Signals, distant, function of, 73. use of, for switch-protection, 241. form, color, or position, 69. home, supplemented by distant, signals, 73. operators of, their duties, 72, 238. (See also Block-signal System.) Simple problem, a, in competitive freight traffic, 28. Sixty and one hundred miles per hour, conditions precedent to a speed of, 80, 266. Sleeping-cars, indispensable for long-distance travel, 263. Southern railroads, change of gauge upon, 60. Southern Railway and Steamship Association, freight classification of, 188. methods of revising, 217. 362 INDEX. Southern Time Convention, consolidation of, with General Time Convention, 1886 1, 2, 140. Space-interval between trains, 18, 66, 67, 68, ?9. absolute, the true preventive of collisions, 237. importance of, in preventing accidents, 234. should vary with speed of following trains, 335. Specialization, a characteristic tendency of the age, 79, 82. Specific unit of cost, compared with ton-mile basis of rates, 36. Speed of trains, high, conditions and improvements essential to, 80, 81. Standard code of train rules, address on, 62. addition to, of block-signal rules, needed, 67. beginning of, 1. committee of Am. Ry. Asso'n on, 6. completed by General Time Convention, 2. efficiency of, 246. extension of, recommended, 246. how they should be worded, 63. justify existence of Am. Ry. Asso'n, 140. memorial of Train Dispatchers' Asso'n concerning amendments to, 62. necessity of additions to, recognizing double-track roads, 65. primarily designed for single-track movements, 65- primary and secondary rules of, 63. referred to, in courts of law, as best practice, 62. should not be frequently altered, except to recog- nize improvements in train service, 64. telegraph rules of, the great value of, 246. two methods of, prescribing safe space-interval between trains, 235. violation of, should be punishable by law, 14. Standard self-couplers, report of Mass. Railroad Commissioners on, 45. report of M. C. B. committee on desirability of, 44. Janney or M. C. B. type of car-coupler adopted by M. C. B. Asso'n, 1888-89; approved by Am. Ry. Asso'n, 1890-91, 48-50. (See also Car-couplers.) Standing committees of the Am. Ry. Association, 16. State railroad commissioners, committee of, to present bill to Congress concerning car-couplers, 53. hearing of R. R. officials before, 53. Statistics, accident, of Railroad Gazette, 227, 228. of freight and passenger revenue and cost, 106 et seq. of Pres't Harrison and Interstate Commerce Commission on coupling casualties, 52. of operating expenses, value of, 27. of traffic, etc., 1892, 102. railroad, applicability of, 127. (See Tables.) Station agents, and other station men, number of, 1893-95, 338. - relations of, with railroad patrons, 139. Stations, collisions at, how prevented, 241. Steam-heating of trains, 245, 246. Steel, Bessemer, importance of, in railroad and bridge construction, 268, 264. INDEX. 363 Steel rails, Bessemer, an epoch in railway development, 263. economy of, 323. Stephenson, assertion of, on competition and combination, 7. outside connected cylinders first designed by, 261. Robert, and the "battle of the gauges," 261 Stephensons, the, early locomotive builders, 259. Stock, railroad, amount of, in United States, 1892, 102. dividends on, 1891,90. productive and non-productive, per mile of road, 316. watering, evils of, 183. helped on by consolidations, 184. Stops, unusual, rules in case of, on "Plant System," 255 et seq. Strike, confusion during a, when work is done by strangers, 281. Strikes of employees, conditions attending, 87, 88. Superintendent, Division, sphere and responsibility of, 136. officials represented by, 138. Mechanical, head of machinery and rolling-stock department, 133. of Transportation, duties, assistants, etc., 134. Superintendents unable to reduce expenses as fast as traffic oflBcials reduce rates, 323. Supervision of employees, carefulness in, 12. Supervisor of road— the length of track he should be responsible for, 132. or track foreman, labor and responsibility of, 286. Supply department, responsibility for, 131. Switch and crossing protection, interlocking for, 73. Switchmen, flagmen, and watchmen, number of, 189-3-95, 328. Switch-levers, counterweigh ted, for main-line switches, 241, 243. Switches, open, remedy against, 243, 346. distant signal connection for, 241, 243. Tables. Accidents, personal injuries in, 250. Annual freight earnings, 1889-93, 109. freight traffic, volume of, 108, 321. net earnings, increase of, 1889-93, 110. passenger earnings, increase of, 1889-93, 117. net, increase and decrease of, 1889-93, 118 traffic, increase of, 1889-93, 116. Average annual mileage of train employees, 1893-95, 329. capitalization per mile of road, 316. cost per passenger-mile in cents, 119. train-load in tons, 1893, 123. Capital, railroad, statistics concerning, 114, 115, 311, 314-317, 840. Changes in net earnings, 1892-94, 113. Comparative cost per passenger-train mile in cents, 125. Comparison of estimated and actual expenses, " Plant System," 164. Cost, average, per passenger -mile in cents, 119. comparative, per passenger-mile in cents, 125. details of, per passenger-mile, 1889-93, 124. per ton-mile, 1889-93, 121. of conducting transportation, 324. of operation per mile of line, 1889-95, 323. classified, 1889-95, 322. proportion of, to total cost per mile of line, 323. 364 IKDEX. Tables. Cost. (See also Rate and Revenue.) Decrease in the several classes of employees, 1893-95, 330. of freight earnings, 1893-94, 109. of ton-mileage in U. S., 1893-94, 108, total, of freight revenue, cost and profit per ton-mile, 1893-95, 107, 308, 309. total, of passenger traffic per passenger-mile, 1893-95, 308, 309. Details of cost per passenger-mile, 1889-93, 124. per ton-mile, 1889-93, 121. Distribution of net earnings, 1895, 313. Dividends and interest, amount of, paid in 1895, 313, 315. paid per mile of line, in 1895, 318. percentage of, actually paid, in 1895, 316. and capital, statistics of, 1888-95, 338. Earnings and mileage, percentage of increase and decrease in, 111. and passenger-mileage, increase of, 119. freight, annual, 1889-93, 109. decrease of, 1893-94, 109. increase of, 1891-93, 110. net, decrease of, 1893-94, 112, 113. distribution of, 1895, 313. increase of, 1889-93, 110. gross and net, from railroad operations, 1895, 312, 313. net, relations of, to capital, 114, 115. passenger, increase of, 1889-93, 117. per mile of line, 317. net, increase and decrease of, 1889^ 93, 118. total, from freight and passenger traffic, 1893, 120. traffic, analysis of, 1889-95, 338. Employees, decrease in total number of, 1893-95, 330. proportionate distribution of, 326. total number of, and per 100 miles of line, 326. compared with cost, in each department : (a) conducting transportation, 328. (5) general administration, 329. (c) maintenance of equipment, 327. (d) maintenance of way, 327. transportation, distribution of, in detail, 1893-95, 328. Equipment per mile of line, 323. Expenses, monthly estimate of, S., F. & W. Ry., 1884, 162. operating, analysis of, 1888-95, 339. Freight and passenger business, per mile of road, 1893, 120. per train-mile, reduction in, 116. total earnings from, 1893, 120. traffic, annual volume of, 108, 321. Increase of passenger mileage and earnings, 5 years, 119. railroad capital investments, 1889-93, 114. road-mileage, 1889-94, 114. Investment per mile of road, 115 railroad, total, returns on, 314, 315. Maintenance of equipment, in cents per train-mile, 1889-95, S24. Number of railway employees, 1889-95. 326. Operating expenses, analysis of, 1888-95, 339. INDEX. 365 Tables. Passenger-miles and gross earnings, increase of, 1889-93, 117, 119. total, 1893-94, 116. Passenger traffic per mile of road, 1889-94, 120. Percentage of increase and decrease in mileage and earnings, 111. Personal injuries in serious railroad accidents, 250. Profit per passenger- and ton-mile, 106, 116. Proportionate distribution of employees, 326. Railroad accidents in the United States, 1873-92, 229. frequency of, 230. Railway capital, amount of (1895), in stock and bonds, 311. Rate and cost per ton-mile, 1893-94, 112. Rate, cost and net, per ton-mile, decrease of, 1889-93, 121. Recapitulation, traffic, earnings and capitalization, per mile of line, 317. Relation of net earnings to railroad capital, 114-115. Returns on total railroad investments, 1895, 314. paying, 315. Revenue and cost of passengei? traffic, 115, 116. per freight-train mile, 123. per passenger mile, 115, 125. per train-mile, freight and passenger, 819. Revenue, cost and profit per passenger- mile, 116. per ton-mile, 106. annual decrease in, 107. Serious accidents, personal injuries in, 250. Statistics of railroad capital and earnings, 1888-95, 340. Stock and bonds per mile of road, 315. productive'and non-productive, per mile of road, 316. Ton-mileage, decrease of, in 1893-94, 112. increase of, in 1889-93, 110. Ton-mile,— revenue, cost and profit, per, 106, 107. Tons and freight earnings per mile, 1889-94, 114. Total dividends and interest paid, 1895, 313, 315. earnings from freight and passenger traffic, 1893, 130. Traffic, earnings and capitalization, per mile of line, 317. Traffic earnings, analysis of, 1889-95, 338. statistics (rates, cost, etc.), 1888-95, 337. Train mileage (freight and passenger), 1888-95, total, percentage, and per mile of line, 320. Train-mile, revenue and cost per, 123, 319, Volume of freight-traffic, ton-miles per mile of line, 310. passenger traffic, passenger-miles per mile of line, 310. Tariff, Interstate, establishment of, 207. principles of, 212. of Georgia R. R. Commission, anomalies in, 190-194. discriminations of, 191, 192. railroad, average rate per ton-mile and per passenger-mile, not applica- ble in fixing, 25. railroad, basis for, 24, 25. cannot be evolved by act of Congress, 212, 213. (See also Railroad Takiff and Rates.) Technical knowledge, growing importance of. in railroad practice, 265. Telegraph, different use of, in American and European R. R. pi-actice, 264. movement of trains by, under Standard Code, 63. 366 INDEX. Telegraph operators and dispatchers, number of, 1893-95, 328. rules of Standard Code, value of, in preventing collisions, 246. Telford roads, 258. Territorial responsibility of railroad oflacers, 137. Theory, definition of, 288, Thrift, importance of, 281. of the French people, 282. Time-interval between trains, 18, 29, 66, 67. Time, preciousness of, 282, Ton- and passenger-mile, futility of units of cost of, 310. Ton mileage, amount of in 1892, 102. decrease of, 1893-94, 112. increase of, 1889-93, 110. percentage of. 111, Ton-mile, annual decrease in revenue, cost and profit per, 107. average, vs. specific cost of, 210. basis, compared with specific units of cost in making through rates, 36. cost (average), a fallacious element in making comparisons, 104. in making tariffs, 25, 29, 31. revenue, cost and profit per, 106 et $eq. statistics of rate and cost of, 1893-94, 112. (See also Rates and Revenue.) Tonnage, small class of operating expenses bears direct relation to, 208, 210. Tons and freight earnings, per mile, 114. Track, defects of, causing derailments, classified, 242, length of sections of, 132. Track-foreman, the, address concerning, 286, Trackman, the, intensely practical, 287. becomes by association more theoretical, 288. Traffic and transportation departments, line of division between, 135. agreements, legally enforced,— a plan worth trying, 336. competitive. (See Competitive Business.) decrease in volume of, 1893-94, 112. department, management of, 156. sphere of, 130, 131. earnings, statistics of, 1888-95, 338. increa.se in freight and decrease in passenger, 1889-95, 332. local, must support its railroad, 201, 202. managements, tendency of, to reduce rates per ton-mile but not per pass- senger mile, 124. manager, evolution of, 96. responsibility of, 104, 105. passenger, decrease of, 1895, 311, difficulties in regulation of , 126, total, 1891-3, earnings, cost and net, 119. railroad, culmination of, 311. statistics,— rate, cost, etc., 1888-95, 337. (See Freight Traffic and Passenger Traffic.) Train accidents, increased liability to, 231. Train Dispatchers' Association of America, memorial of, concerning amend- ments to train rules, 62. Trainmen (not conductors), number of, 1893-95, 328. Trains, fires on, cases of, classified, 245, INDEX. 367 Train-order system, originated by Moran of the Erie R. R., 264 characteristic of American railway management, 265. Train signals, uniform, establishment of, 1. rules (uniform), beginning of, 1. for double-track roads needed, 74. violations of, should be dealt with by the courts, 14, 247. (See also Standard Code of Train Rules.) service, greater saving in freight than passenger, 320. proper division of responsibility in, 134. Trains, possible speed of, 80, 266. protection of, against carelessness of the train-men themselves, 73. by flagmen, 17, 18. other agencies, 66, 67. time and space intervals between, 18, 66-68. Transportation, conducting, cost of, 122, 124. cost of, compared with cost of maintenance of way and equip* ment, 26. per mile and train-mile, 1889-95, 324. why increased, 325. cost of, 24, 26, 31. problem of ascertaining, 202-204. definition of cost of, 26. department, description of, 100, 130, 134. head of, 134 officials, advancement of, to what due, 263, 265. relation of, to traffic department, 135. S., F. & W. Ry., expenses of, 166, 167. freight, annual, table of, for six years, 108. less margin between charge for, and cost of service, 106. problems, successful solution of, by present generation of railroad men, 263. revenue, decreasing more rapidly than cost, 319. service, public interest in better and safer, not cheaper, 93. specific cost of, items to be included in, 213. the two elements of charge for, 24. Travelling public, its interest in the enforcement of railroad discipline, 14. Truck, four-wheel, (bogie) advantages of in car construction, 305. on American roads, effect of, on social life, 304 Ulnio, H. A., member advisory board, " Plant System," 170. Uniform car-couplers. (See Car-couplers.) code of train rules, beginning of, 1. necessity for, 64. system of railroad accounts not desirable, 221. train signals, establishment of, 1. Uniformity, efforts of M. C. B. Asso'n, in behalf of, 306. in non-essentials not needed in railway management, 157. of classification desirable, but not of rates, 212, 216, 217. United States, meeting of International Railway Congress advocated, 147, 296. people of, have free use of half the capital invested in railroads, 315. railroad mileage of, 265, 331. relation of railroad system of, with general public, 177. Senate, committee of, statement before, concerning freight rates, pooling, etc, 187 et seq. 368 INDEX. United States, value of railroad property in, 308, Unit, lowest, of operating cost, nearly reached, 81. Units of cost, in freight and passenger service, vahie of, 35. per ton- and passenger-mile, futility of, 310, 318. specific, compared with ton-mile basis in getting competitive business, 36. Unjust discrimination in rates, definition of three classes of, 196. evils of, 334. most reprehensible form of, 198. percentage of net earnings reduced by, 335. public opinion a bar to reform in, 334. remedy for, 335. Unusual stops of trains, rules for flagmen for, on " Plant System," 254 et seq. Usefulness, field of, of the American Railway Asso'n, 1, 3. Value of railroad property in the United States, 308, et seq. conclusions concerning, 331. Vanishing point in railroad profits, tendency toward, 124, 309. Vertical-hook type of couplers established by action of .Janney Co., 49. plane principle for automatic couplers first suggested by Mr. Wall, 46. Vestibule platform improvements, 305, 306. Vignoles, originator of the the T-raii, 259. Volume of freight and passenger traffic per mile of line, 310, 332. railroad traflflc, culmination of, 311, 318. Voorhees, Theo., moved adoption of M. C. B. standard coupler, 50. Vote by railroad employees on type of uniform couplers, 57. Wages are what part of operating expenses, 98. must suffer from any further reduction in the rates, 122. of employees compared with total cost of railroad operation, 330. of railroad men, 278. of trackmen, 1892-95, 327. of transportation men, reduction in, 1893-95, 328, 329. proportion of, in different railroad departments, 100, 101. reduction of, difficulties concerning, 91, 98, 101, 113. scale of, in the iron trade, 88. Wagner sleeping-cars, 263. Watches, accuracy of, ensured by standard rules, 63. Watchmen, etc., number of, 1893-95, 328. Watering stock too often a sequence of foreclosure, 183. Water-routes, effect upon transportation, 223. natural protection of interstate commerce, 224. Watt and Bolton, allusion to, 259. Western Railway Club, address before, 1895, 290. Westinghouse, Geo., Jr., great invention of, 264, 300. Wilder, Mr. (N. Y., L. E., & W. R. R.) remark of, on couplers, 46. Wilson and Walker's car coupler, approved for trial by Com. M. C. B. Asso*D, 46. Workmen, condition of American and European, compared, 86. World's Columbian Exposition, address at, on " Railroad Day," 258. Railway Commerce Congress, address before, 227. Yardmasters' action on safety couplers, 41. Association, coSperation of. with M. C. B. Asso'n against coup- ling accidents, 42, 44. Young Men's Christian *i — 'n . Npr Ynrli 1(1? Branch, address before, 271. Young men (railroad), advijjp^e^p^rU^^^^Kl*!^ 276. ^^ OF THE "^y UNIVERSITY S>J^r. «^4\h. SHORT-TITLE CATALOGUE OP THE PUBLICATIONS OF JOHN WILEY & SONS, New York. London: CHAPMAN & HALL, Limited. ARRANGED UNDER SUBJECTS. Descriptive circulars sent on application. Books marked with an asterisk are sold at net prices only. All books'are bound in cloth unless otherwise stated. AGRICULTURE. Cattle Feeding— Dairy Practice— Diseases of Animals- Gardening, Etc. Armsby's Manual of Cattle Feeding 12mo, $1 75 Downing's Fruit and Fruit Trees 8vo, 5 00 Grotenfelt's The Principles of Modern Dairy Practice. 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