By E. P. ALEXANDER. Relations of Railway Management to all Other Pursuits—Developed by the Necessities of a Complex Industrial Life—How a Continuous Life is Given to a Corporation—Its Artificial Memory—Main Divisions of Railway Management—The Executive and Legislative Powers—The Purchasing and Supply Departments—Importance of the Legal Department—How the Roadway is Kept in Repair—The Maintenance of Rolling Stock—Schedule-making—The Handling of Extra Trains—Duties of the Train-despatcher—Accidents in Spite of Precautions—Daily Distribution of Cars—How Business is Secured and Rates are Fixed—The Interstate Commerce Law—The Questions of "Long and Short Hauls" and "Differentials"—Classification of Freight—Regulation of Passenger-rates—Work of Soliciting Agents—The Collection of Revenue and Statistics—What is a Way-bill—How Disbursements are Made—The Social and Industrial Problem which Confronts Railway Corporations. The world was born again with the building of the first locomotive and the laying of the first level iron roadway. The energies and activities, the powers and possibilities then developed have acted and reacted in every sphere of life—social, industrial, and political—until human progress, after smouldering like a spark for a thousand years, has burst into a conflagration which will soon leave small trace of the life and customs, or even the modes of thought, which our fathers knew. But, in it all, the railroad remains the most potent factor in every development. By bringing men more and more closely together, and supplying them more and more abundantly and cheaply with all the varied treasures of the earth, stored up for millions of years for the coming of this generation, it adds continually more fuel to the flame it originated. And as it is necessarily reacted upon equally by every new invention or Hence, in the practical management of railroad affairs, problems are of constant occurrence which touch almost every pursuit to which men give themselves, whether of finance, agriculture, commerce, manufactures, science, or politics; and the methods, forms, and principles under which current railroad management is being developed (for it is by no means at a stand-still) are the result of the necessities imposed by these multiplying problems acting within the constraints of corporate existences. For while the life of a corporation is perpetual, its powers are constrained, and the individuals exercising them are constantly changing. It is but an artificial individual existing for certain purposes only, and, as it lacks some human qualities, all its methods of doing business are influenced thereby. The business affairs of an individual, for instance, are greatly simplified by his memory of his transactions from day to day and from year to year. But a corporation having no natural memory, all of its transactions and relations must be minutely and systematically noted in its archives. Every contract and obligation must be of record, all property bought or constructed must go upon the books, and, when expended or used up, must go off in due form; and especially must an accurate system of checks guard all earnings and expenditures, and a comprehensive system of book-keeping consolidate innumerable transactions into the great variety of boiled-down figures and statistics necessary for officers and stockholders to fully understand what the property is doing. Under such circumstances, then, our railroads and their systems of organization and management, like the Darwinian Topsy, have not "been made" but have "growed." Naturally, both the direction and extent of the development have varied in different localities and under different conditions. Within the limits of this article it would be impossible to give anything like an exhaustive or complete account of the organization, distribution of duties, systems of working, and of checks in the various departments of even a single road. Most roads publish more or less elaborate small volumes of regulations on such subjects for the The principal duties connected with the management of a railroad may be classified as follows: 1. The physical care of the property. 2. The handling of the trains. 3. The making rates and soliciting business. 4. The collection of revenue and keeping statistics. 5. The custody and disbursement of revenue. The president is, of course, the executive head of the company, but in important matters he acts only with the consent and approval of the Board of Directors, or of an executive committee clothed with authority of the board, which may be called the legislative branch of the management. More or less of the executive power and supervision of the president may be delegated to one or more vice-presidents. Often all of it but that relating to financial matters is so delegated, but, as their functions are subdivisions of those of the president, they have no essential part in a general scheme of authority. Of the five subdivisions of duties indicated above, the first four are usually confided to a general manager, who may also be a vice-president, and the fifth is in charge of a treasurer, reporting directly to the president. The special departments under charge of the general manager are each officered by trained experts: A superintendent of roadway or chief engineer has charge of the maintenance of the track, bridges, and buildings. A superintendent of machinery has charge of the construction and maintenance of all rolling stock. A superintendent of transportation makes all schedules, and has charge of all movements of trains. A car accountant keeps record of the location, whereabout, and movements of all cars. A traffic manager has charge of passenger and freight rates, and all advertising and soliciting for business. A comptroller has charge of all the book-keeping by which the revenue of the company is collected and accounted for. All statistics are generally prepared in his office. A paymaster receives money from the treasurer and disburses, under the direction of the comptroller, for all expenses of operation. All dividend and interest payments are made by the treasurer, under direction of the president and board. There are, besides the above, two general departments with which all the rest have to do, to a greater or less extent—the legal department and the purchasing department. The quantity and variety of articles used and consumed in the operation of a railroad are so great that it is a measure of much economy to concentrate all purchases into the hands of a single purchasing agent, rather than to allow each department to purchase for itself. This agent has nothing to do but to study prices and markets. His pride is enlisted in getting the lowest figures for his road, and the large amount of his purchases enables him to secure the best rates. And last, but not least, in matters where dishonesty would find so great opportunities, it is safer to concentrate responsibility than to diffuse it. As I shall not again refer to this department, what remains of interest for me to say about it will be said here. As an adjunct to it, storehouses are established at central points in which stocks of articles in ordinary use are kept on hand. Whenever supplies are wanted in any other department—as, for instance, a bell-cord and lantern by a conductor—requisitions are presented, approved by a designated superior. These requisitions state whether the articles are to be charged to legitimate wear and tear, and if so, whether to the passenger or the freight service, and of which subdivision of the road; or whether they are to be charged to the conductor for other articles not properly accounted for. Without Before returning to a more detailed review of the operating departments of a railroad, its legal department requires a few words. Not only is a railroad corporation, being itself a creation of the law, peculiarly bound to conform all its actions to legal forms and tenets, but it is also a favorite target for litigation. The popular prejudice against corporations, it may be said in passing, is utterly illogical. The corporation is the poor man's opportunity. Without it he could never share in the gains and advantages open to capital in large sums. With it a thousand men, contributing a thousand dollars each, compete on equal terms with the millionaire. Its doors are always open to any who may wish to share its privileges or its prosperity, and no man is denied equal participation according to his means and inclinations. It is the greatest "anti-poverty" invention which has ever been produced, and the most democratic. But, for all that, instead of possessing the unbounded power usually ascribed to it, no creature of God or man is so helpless as a corporation before the so-called great tribunal of justice, the American jury. It may not be literally true that a Texas jury gave damages to a tramp against a certain railroad because a section-master's wife gave him a meal which disagreed with him, but the story can be nearly paralleled from the experience of many railroads. Hence settlements outside of the law are always preferred where they are at all possible, and an essential part of an efficient legal organization is a suitable man always ready to repair promptly to the scene of any loss or accident, to examine the circumstances with the eye of a legal expert on liabilities. But the management of claims, and of loss and damage suits, though a large part, is by no means all of the legal business connected with a railroad. Every contract or agreement should pass under scrutiny of counsel, and in the preparation of the various forms of bonds, mortgages, debentures, preferred stocks, etc., We shall now return to the operating departments under their respective heads, and glance briefly at the methods and detail pursued in each. On roads of large mileage the general manager is assisted by general or division superintendents in charge of roadway, motive power, and trains of one or more separate divisions; but for our purposes we may consider the different departments without reference to these superintendents. The superintendent of roadway or chief engineer comes first, having charge of track, bridges, and buildings. In his office are collected maps of all important stations and junction points, kept up to date with changes and additions; scale drawings of all bridges and trestles, of all standard depots, tanks, switches, rails, The superintendent of roadway or chief engineer comes first, having charge of track, bridges, and buildings. In his office are collected maps of all important stations and junction points, kept up to date with changes and additions; scale drawings of all bridges and trestles, of all standard depots, tanks, switches, rails, fastenings, signals, and everything necessary to secure uniformity of patterns and practice over the entire road. Under him are supervisors of bridges and supervisors of road, each assigned to a certain territory. The supervisors of bridges make frequent and minute examinations of every piece or member of every bridge and trestle, report in advance all the repairs that become necessary, and make requisition for the material needed. Under the bridge supervisor are organized "bridge gangs," each consisting of a competent foreman with carpenters and laborers skilled in bridge work and living in "house" or "boarding" cars, and provided with pile-drivers, derricks, and all appliances for handling heavy timbers and erecting, tearing down, and repairing bridges. These cars form a movable camp, going from place to place as needed, and being side-tracked as near as possible to the work of the gang. Long experience begets great skill in their special duties, and the feats which these gangs will perform are often more wonderful than many of the more showy performances of railroad engineering. It is an every-day thing with such gangs to take down an old wooden structure, and erect in its place an iron one, perhaps with the track raised several feet above the level Each of the supervisors of road has his assigned territory divided into "sections," from five to eight miles in length. At a suitable place on each section are erected houses for a resident section-master and from six to twelve hands. These are provided with hand- and push-cars, and spend their whole time in keeping their sections in good condition. Upon many roads annual inspections are made and prizes offered for the best sections. At least twice a day track-walkers from the section-gangs pass over the entire line of road. To simplify reports and instructions, frequently every bridge or opening in the track is numbered, and the number displayed upon it; and every curve is also posted with its degree of curvature and the proper elevation to be given to the outer rail. The work of the section-men is all done under regular system. In the spring construction-trains deliver and distribute ties and rails on each section, upon requisitions from supervisors. Then the section-force goes over its line from end to end, putting in first We come next to the superintendent of machinery, whose duty it is to provide and maintain locomotives and cars of all kinds to handle the company's traffic. His department is subdivided between a master mechanic, in charge of locomotives and machine-shops, and a master car-builder, in charge of car-shops. The master mechanic selects and immediately controls all engine-runners and firemen, and keeps performance sheets of all locomotives, showing miles run, cars hauled, wages paid, coal and oil consumed, and Report of Performance of Engines, Repairs, and all other Costs Incident thereto, for the fiscal year ending June 30th, 1888. [Key for column headings. Column A has been repeated in each Part.] A. Number of Engine. B. Passenger C. Freight. D. Gravel or Construction. E. Switching. F. Total. G. Eighth Cords of wood. H. Bushels Coal. I. Cost of Fuel. [Table—Part 1 of 4]
A. Number of Engine. J. Gallons of Engine Oil. K. Signal Oil. L. Head-Light Oil. M. Lbs. of Cyl. Oil. N. Car Grease. O. Waste. P. Packing. Q. Gallons Kerosene. [Table—Part 2 of 4]
A. Number of Engine. R. Cost of Stores. S. Wages of Engineer and Fireman. T. Cost of Cleaning. U. Labor. V. Material. W. Total Cost of Repairs. X. Total Expenses and Repairs. [Table—Part 3 of 4]
A. Number of Engine. Y. Bushel Coal. Z. Gal. Engine Oil. AA. Pound of Tallow. BB. Repairs. CC. Fuel. DD. Stores. EE. Wages E. and F. FF. Cleaning. GG. Total. HH. Car Mileage. [Table—Part 4 of 4]
The master car-builder has charge of the shops where cars are built and repaired, and of the car-inspectors who are stationed at central and junction points to prevent defective cars being put into the trains. Formerly each railroad used its own cars exclusively, and through freights were transferred at every junction point. This involved such delay and expense that railroads now generally permit all loaded cars to go through to destination without transfer, and allow each other a certain sum for the use of cars. Usually this is about three-quarters of a cent for each mile which the car travels on a foreign road. This involves a great scattering of cars, and an extensive organization to keep record of their whereabouts and of the accounts between the companies for mileage. There is much convenience in this, but one disadvantage. It requires almost unanimous action to introduce any change of form or of construction, however advantageous it may be. And to secure unanimous action in such matters is almost as hard as it would be to secure unanimity in a change in the spelling of English words. Still there is progress, though slow, toward several desirable reforms, the most important of which is the adoption of a standard automatic coupler (see p. 142). Having shown how the property of all kinds is kept in efficient condition, we next come to its operation. This is called "conducting transportation," and the officer in charge is usually called the superintendent of transportation. All train-despatchers, conductors, train-men, and telegraph operators are under his immediate control. He makes all schedules and provides all extra and irregular service that the traffic department makes requisition for, First, a general time-table or schedule is carefully made out for all regular trains upon each division, showing on one sheet the time of each train at each station. This schedule is all that is needed so long as all trains are able to keep on time, and there are no extras. Trouble begins when regular trains cannot keep on schedule, or when extra trains have to be sent out, not provided for on the schedule. A diagram, or graphic representation of this schedule, upon a board or large sheet of paper, is an important feature of the office regulating train-movements. Twenty-four vertical lines divide the board into equal spaces representing the twenty-four hours of the day, numbered from midnight to midnight. Horizontal lines at proportionate distances from the top represent the stations in their order between the termini, represented by the top and bottom lines of the diagram. The course of every train can now be plotted on this diagram in an oblique line joining the points on each station line corresponding to the time the train arrives at and leaves that station. The cut on the opposite page will illustrate. It represents a road 130 miles long from A to N, with intermediate stations B, C, D, etc., at different distances from each other, and six trains are shown as follows: A passenger train, No. 1, leaving A at 12 midnight and arriving at N at 4.05 A.M. A fast express, No. 2, leaving N at 12.45 and arriving at A at 3.30. A local passenger train, No. 4, which leaves N at 1.15, runs to E by 4 A.M., stops there until 4.10, and returns to N by 7 A.M.; being called No. 3 on the return, as the direction is always indicated by the train-number's being odd or even. No. 5 is a way freight, leaving A at 12.05 and making long stops at each station. No. 6 is an opposing train of the same character. The diagram shows at a glance how, when, and where all these trains meet and pass each other, and where every train is at any But the more usual way of handling extra trains, when circumstances will permit, is to let them precede or follow a regular train upon the same schedule. The train is then said to be run in "sections," and a ten minutes' interval is allowed between them. That opposing trains may be informed, the leading section (and So far the rules are very simple, and they would be all that is necessary if all trains could always be kept exactly on time. But as that cannot be, provision must be made for all the complications which will result. The first and most important rule is that no train must ever, under any circumstances, run ahead of time. The next is that any train making a stop not on its schedule must immediately send out flagmen with red flags, lights, and torpedoes to protect it. This rule is a very difficult one to enforce without rigid discipline, and its neglect is the cause of a large percentage of the accidents "that will happen." The flagman who must go to the rear, often a half-mile, at night, across trestles and in storms, must frequently be left behind, to take his chances of getting home by being picked up by a following train. There is no one to watch him, and he will often take chances, and not Now, when a train is prevented from arriving on time at its meeting-point, we must have some rules by which the opposing train may proceed, or all business on the road would be suspended by the delay of a single train. Only the general principles of these rules can be stated within limits. They are as follows: 1. All freight trains must wait indefinitely for all passenger trains. 2. When one train only is behind time, the opposing train of the same class will wait for it a specified time, usually ten minutes, and five minutes more for possible variation of watches, then go ahead, keeping fifteen minutes behind its schedule. 3. But should such a train, running on delayed time, lose more time, or in any other way should both trains get behind time, then the one which is bound in a certain direction—for instance, north—has the right to the track, and the other must lie by indefinitely. These principles, duly observed, will prevent collisions, but they will often cause trains to lose a great deal of time. The train-despatcher, therefore, has authority to handle extra and delayed trains by direct telegraphic order. Every possible precaution is taken to insure that such orders are received and correctly understood. As there are great advantages following uniformity of usages and rules among connecting roads, after years of conference, in conventions and by committees, approved forms of all running rules and signals have recently been adopted and are now in very general use over the United States. Yet, in spite of all possible precautions, accidents will sometimes happen. Richard Grant White gave a name to a mental habit which, in train-despatchers, has caused many fatal accidents. It is "heterophemy," or thinking one thing while saying, hearing, or reading another. A case within my knowledge, which cost a dozen lives, was as follows: Two opposing trains were out of time, and the train-despatcher wished to have them meet and pass at a certain station we will call "I," as Nos. 1 and 2 are represented as doing on the diagram (see diagram of schedule board, p. 161). So he telegraphed the following message, to be delivered to No. 1 at "H" So it was delivered to No. 1, and that train left "H" at full speed, expecting to run thirty-five miles to "K" before meeting No. 2. There was no telegraph office at "I," and there were no passengers to get off or on, and it passed there without stopping, and three miles below ran into No. 2 on a curve. By one of those strange impulses which seem to come from some unconscious cerebration, the train-despatcher meanwhile had a feeling that something was wrong, and looked again at the message received from "H" and discovered his mistake. But the trains were then out of reach. He still hoped that No. 2 might arrive at "I" first, or that they might meet upon a straight portion of road, and as the time passed he waited at the instrument in a state of suspense which may be imagined. When the news came he left the office, and never returned. Double tracks make accidents of this character impossible; but introduce a new possibility, that a derailment from any cause upon Central Switch and Signal Tower. Where trains become very numerous additional safeguards are added by multiplying telegraph stations at short intervals, and giving them conspicuous signals of semaphore arms and lanterns, until finally the road is divided into a number of so-called "blocks" of a few miles each; and no train is permitted to enter any block until the train preceding has passed out. And in the approaches to some of our great depots, where trains and tracks are multiplied and confused with cross-overs and switching service, all switches are set and all movements controlled by signals from a single central tower. Sometimes, by very expensive and complicated apparatus, it is made mechanically impossible to open a track for the movement of a train without previously locking all openings by which another train might interfere. The illustrations on pages 169, 171, and above will serve to give some general idea of these appliances. Where trains become very numerous additional safeguards are added by multiplying telegraph stations at short intervals, and giving them conspicuous signals of semaphore arms and lanterns, until finally the road is divided into a number of so-called "blocks" of a few miles each; and no train is permitted to enter any block until the train preceding has passed out. And in the approaches to some of our great depots, where trains and tracks are multiplied and confused with cross-overs and switching service, all switches are set and all movements controlled by signals from a single central tower. Sometimes, by very expensive and complicated apparatus, it is made mechanically impossible to open a track for the movement of a train without previously locking all openings by which another train might interfere. The illustrations on pages 169, 171, and above will serve to give some general idea of these appliances.
There remains one other branch of the duties of the master of transportation—the proper daily distribution of cars to every station according to its needs, and the keeping record of their whereabouts. And now that the gauges of all roads are similar, and competition enforces through shipments, roads are practically making common property of each other's cars, and the detail and trouble of keeping record of them become enormous. The records are made up from daily reports, by every conductor, of every car, home or foreign, handled in his train, and from every station-agent of all cars in his yard at certain hours. From these returns the car accountant reports to their respective owners all movements of foreign cars and gives the transportation department information where cars are lying. The honesty of each other's reports concerning car movements is generally relied upon It has been suggested that a great step in advance would be to have all the roads in the United States unite and put all cars into a common stock and let them be distributed, record kept of movements, and mileage paid through a general clearing house. This would practically form a single rolling-stock company owned by the roads contributing their cars to it. It could gradually introduce uniform patterns of construction, improved couplers, and air-brakes, and could concentrate cars in different sections of the country in large numbers as different crops required movement, thus avoiding the blockades which often occur in one section while cars are superabundant in another. Consolidations usually render more efficient and cheaper service than separate organizations can do, and this may come about in the course of time. We have now seen how the road is maintained and its trains safely handled. The next step in order is to see how business is secured and the rates to be charged are fixed. This department may be controlled by a traffic manager, with two assistants—the general freight agent and the general passenger agent—or the officers may report directly to the general manager without the intervention of a traffic manager. But it would be a more accurate expression to say, not that these officers "fix" the rates, for if they did few railroads would ever fail, but that they accept and announce the rates that are fixed by conditions of competition between different markets and products, and between different railroads and water lines. Among these complex forces a railroad freight agent is nearly as powerless to regulate rates as a professor of grammar is to regulate the irregularities of English verbs. He can accept them and use them, or he may let them alone, but the irregularities will remain, all the same. There is no eccentricity, for example, more idiotic or indefensible to the ordinary citizen than a habit railroads have of sometimes charging less money for a long haul than they charge for a shorter haul. Yet I believe there is not a railroad line in the United States which will not be found guilty of this apparent folly of charging "less for the long haul" if its rates to distant points are followed far enough. For if followed far enough we But it would lead too far from our subject to follow this and several other questions which are suggested by it. Only it may be said briefly that the original Interstate Commerce Bill, introduced by Mr. Reagan, absolutely prohibited "less for the long haul." The Senate amended by adding "under similar circumstances and conditions," and the Interstate Commerce Commission has held that "water competition" makes dissimilar circumstances and thus legalizes it. And in this connection it may be added that the other Senate amendment to the Reagan bill, creating an Interstate Commerce Commission, was, next to the above amendment, the wisest measure of the bill. It forms a body of experts whose opinions and decisions must gradually educate the public, on the one hand, to a better understanding of transportation problems, and restrain the railroads, on the other, from many of the abuses incident to unchecked competition among them. For, however theorists may differ as to the advantages or disadvantages of competition in manufactures and commerce, either absolutely unchecked or checked only by high or low tariffs, I think all will agree that unchecked In nearly every foreign country there is either a railroad pool or a division of territory, to prevent this sort of competition, which is only pernicious. A merchant needs to feel assured that rates are stable and uniform to all, and not that he must go shopping for secret rates, in order to be on an equality with his competitor. In the United States the railroads had largely resorted to pools before the Interstate Commerce Law forbade them. The result of this prohibition has generally been very advantageous to the best lines, which, under the pool, really paid a sort of blackmail to the poorer lines to maintain rates. If the penalties of the law can restrain such lines from rebating and under-billing, to be rid of the pool will be a great blessing to the well-located roads. If not, then the roads will be driven into consolidation, for the end of fighting will be bankruptcy and sale. Fortunately consolidation has already gone so far in many sections of the country that the difficulties of abolishing rebates have been greatly reduced. And as far as it has gone it has proved of much advantage both to the public and to the stockholders. Fortunately, too, the other results attendant upon consolidation have been sufficiently demonstrated to remove any intelligent fear of extortion in rates or deterioration of service. Who would to-day desire to undo the consolidations which have built up the Pennsylvania Railroad or the New York Central, and call back to life the numberless small companies which preceded them? The country has outgrown such service as they could render, and the local growth and development along the lines of these consolidated companies certainly indicates improved conditions. In this con There are many other live issues of great interest and importance in transportation suggested by this subject, such as "re-billing" or "milling in transit," and "differentials," but space forbids more than an explanation of the meaning of these two especially prominent ones. ABC Let A B and B C be two railroads connecting at B. Let the local rates A to B be 10 cents per 100 lbs. on grain, and B to C also 10 cents. Let the through rate A to C be 18, since longest hauls are usually cheapest per mile. Let A be a large grain market, such as Chicago. Now a merchant at C can save 2 cents per 100 lbs. by buying direct from A instead of buying from a merchant at B. For the grain will pay less for the single long haul than for the two short hauls. But perhaps the town of B has for many years enjoyed the trade of C, and there are large mills and warehouses erected there. B will then say it is "discriminated against," and will demand the privilege of "re-billing" or "milling in transit." That is to say, when a merchant or miller at B ships to C grain, or flour made of grain, which he received from A, the two roads consent to make a new way-bill and treat the shipment as a through shipment from A to C. The road B C charges but 8 cents, and the road A B gives B C one cent from the 10 it originally collected. This involves much trouble and a loss of revenue to the roads, and is, apparently, a discrimination against the home products of B, but roads frequently do it where there is competition at C by rival lines, and also at local points along their lines to build up mills, distilleries, and factories of all kinds in competition with those located elsewhere. As yet the Interstate Commerce Commission has not pronounced upon this practice. The question of differentials is as follows: Suppose there are three lines, B, D, and E, between the cities A and C (Diagram, page 176). B, being the shortest, will get most of the business when The foregoing will illustrate how the rivalry of railroads with each other complicates the making of rates. But even more difficult to manage is the rivalry of markets, and of products, and of new methods which threaten property invested in old methods; as, for instance, the dressed-beef traffic from the West threatens the investments in slaughter-houses and stock-yards in the East. As the roads have found it necessary to act together in establishing running rules and regulations, so, in spite of all rivalries, there must also be joint agreements reached in some way concerning rates. Usually the roads serving a certain territory form an "association," and their freight agents form "rate committees," which fix and publish joint rates. A tariff published by one of the trunk lines from the Eastern cities forms a good example. As the result of many long and bitter wars and many compromises, it has been agreed among these roads that the rates from New York to Chicago shall form a basis for all other rates, and a scale has been fixed showing the percentage of the Chicago rate to be used as the rate to each important point in the West. Thus Pittsburgh, Pa., is 60 per cent. of Chicago rate; Indianapolis is 93; Vandalia, 116. The tariff above referred to gives an alphabetical list of some 5,000 towns reached over these roads, and opposite each town the figure showing its percentage of the Chicago rate. The list begins with Abanaka, O., 90, and ends with Zoar, O., 74. The tariff next gives what is called the "Trunk Line Classification," which is a list comprising every article known to commerce, in all the different conditions, shapes, and packages in which it is offered for transportation, and opposite each article is given its assigned "class." This particular classification assigns every article to one of six regular, or two special, classes, and the present rates There is also given in the tariff pamphlet a list of some 300 manufacturing towns in New England, from each of which the same rates apply as from New York. So, on the whole, the pamphlet gives rates on about 6,000 articles from 300 points of origin to 5,000 destinations. In different sections of the country different classifications are in use, some of them embracing twenty or more classes, and allowing finer shades of difference between articles according to their value, bulk, or many other varying conditions which determine the class into which each article is put. Great efforts have been made to bring about a uniformity of classification over the whole United States, and the number of classifications in extensive use has been reduced from a very large number to perhaps a dozen. But absolute uniformity cannot be obtained under the widely different conditions which prevail in different sections, without great loss and sacrifices somewhere. A road, for instance, competing with a river or canal must adjust the classification of the particular kinds of freight best adapted to river or canal transportation so as to secure the traffic in competition with boats. It must almost entirely disregard bulk, value, and all other conditions upon which a road not affected by this particular kind of competition arranges its classification. Uniformity would either force one of them to lose a legitimate business, or the other to reduce reasonable rates. These rates and classifications are the battle-ground for all the innumerable rivalries of trade and commerce. Every city is here at war with every other city, every railroad with every other road, every industry with those which rival it, and every individual shipper is a skirmisher for a little special rate, or advantage, all to himself. State legislatures and commissions, Congress, and the Inter Passenger rates are established in much the same manner as freight rates. There are passenger-agents' associations and conventions, and they fight as do the freight men over comparative rates and differentials, and commissions to agents. The last within a few years has been a fearful abuse, and is not yet entirely abolished. This will illustrate: The road A B has two connections, C and D, to reach E. It sells tickets over each at the same rate, and stands neutral between them. But C agrees with A's ticket-seller that he will give him a dollar for every ticket he can sell over C's line. D finds that he is There is another practice in the passenger business which is unfair at the best and is the source of many abuses. It is charging the same to the man with no baggage as to the man with a Saratoga trunk. If the baggage service were specially organized as a trunk express, it could be more efficiently handled and without any "baggage smashing," while the total cost of travelling to persons with baggage would be no more than at present, and to those without, much less. As an illustration of the sort of abuses to which it is now liable, I may cite a single case. I have known a merchant buy a lot of twenty trunks for his trade, pack them all full of dry-goods, check them to a city 1,000 miles away by giving a few dollars to baggage-men, and himself buy a single ticket and go by a different route. The roads which handled that baggage imagined that it belonged to their passengers, and were never the wiser. While the baggage service is free, no efficient checks can be provided against such frauds. Essential parts of both freight and passenger departments are the soliciting agents. They are like the cavalry pickets and scouts of an army, scattered far and wide over the country and looking after the interests of their lines, making personal acquaintances of all shippers and travellers, advertising in every possible manner, and reporting constantly all that the enemy—the rival lines—are doing, and often a great deal that they are not. For the great railroad wars usually begin in local skirmishes brought on by the zeal of these pickets when the officers in command would greatly prefer to live in peace. Besides their receipts from freight and passenger traffic, railroads derive revenue also from the transportation of mails and express freight on passenger trains, from the sleeping-car companies, and from news companies for the privilege of selling upon trains. Of the total revenue about 70 per cent. is usually derived from freight, 25 per cent. from passengers, and 5 per cent. from mail, express, sleeping-cars, and privileges. When it is considered that high speed involves great risks and necessitates a far more perfect roadway, more costly machinery and appliances, and a higher grade and a greater number of employees, the fast passenger, mail, and express traffic hardly seems at present to yield its due proportion of income. We have now followed the line of organization and management through the physical maintenance of the road and rolling stock, the safe handling of the trains, the establishment of rates, and solicitation of business. It only remains to show how the revenue is collected, how the expenses of operation are paid, and all statistics of the business prepared. These duties are usually united under charge of an officer called the comptroller, general auditor, or some equivalent title. His principal subordinates, whose duties are indicated by their titles, are the auditor of receipts, auditor of disbursements, local treasurer, paymaster, and clerk of statistics. The record of a single shipment of freight will illustrate methods, so far as limits will permit. A shipper sending freight for shipment sends with each dray-load a "dray ticket" in duplicate, showing the articles, weight, marks, and destination. If he has prepaid the freight, or advanced any charges which are to be paid at destination, it is also noted on the dray ticket. When the drayman reaches the outbound freight depot with his load, he is directed to a certain spot where all freight for the same destination is being collected for loading. A receiving clerk checks off his load against the duplicate dray tickets, keeps one and files it, and gives the drayman the other, receipted. In case of any loss arising afterward, the original dray ticket, made by the shipper himself, with his marks and instructions, becomes a valuable record. When the entire shipment has been delivered at the loading point, the shipper takes the dray tickets representing it to the proper desk, and Now we will return to the shipment itself and see how it is taken care of. The whole structure of the system of collecting freight revenue, holding accountable all agents who assess it and collect it, dividing it in the agreed proportions between all the railroads, boats, bridges, wharves, and transfer companies who may handle it in its journeys, even across the continent, and the tabulating of the immense mass of statistics which are kept to show, separately, the quantities of freight of every possible class and variety, by every possible route, and to and from every possible point of destination and departure—all this system, neither the magnitude nor the minute elaboration of which can be adequately described within limits, is founded upon a paper called the way-bill. The theory of the way-bill is that no car must move without one accompanying it, describing it by its number and the initials of the road owning it, and showing its points of departure and destination, its entire contents, with marks and weights of each package, consignors and consignees, freight and charges prepaid or to be collected at destination, and the proportion of the same due to each carrier or transfer in the line. And not only must a way-bill accompany the car, but a duplicate of it must be sent immediately and directly, by the office making the original, to the office of the auditor of freight receipts. If the railroad is a member of any association, as the Trunk Line Association in New York, another duplicate is sent to its office, that it may supervise all rates, and see what each road is doing. The sum of all the way-bills is the total And while the original way-bill fulfils its important function of conducting the freight to destination and delivery, the duplicate which was forwarded directly to the auditor of freight receipts has no less important purposes. It is the initial record that freight has been earned, and it shows which agent of the company has been charged with its collection. Before making any entries from it its absolute correctness must be assured. For this purpose all its figures are first checked by a rate-clerk, who is kept constantly supplied by the traffic department with all current rates, classifications, and percentage tables by which through freights are divided. These way-bills, coming in daily by hundreds and thousands, are then the grist upon which the office of the auditor of receipts grinds, and from which come forth the accounts with every agent, showing his debits for freight received, and the consolidations showing the freight earnings of the road. Agents remit the moneys they collect direct to the treasurer, who makes daily reports of the credits due to each one. A travelling auditor visits every station at irregular intervals and checks the agent's accounts, requiring him to justify any difference between his debits and credits by an exhibit of undelivered freight. The passenger earnings are obtained from daily reports by all conductors of their collections, and by all ticket-sellers of tickets sold. These reports are also checked by a passenger rate-clerk, and the travelling auditor frequently examines and verifies the tickets reported by agents as on hand unsold. After the auditor of receipts has finished with the way-bills and ticket reports, they go to the statistical department, where are prepared the great mass and variety of statistics required by different officers to keep themselves thoroughly posted on the growth or decrease of business of every variety, and from and to every market reached by the road. Finally, the way-bills are filed away for reference in case of claims for overcharges, or lost or damaged goods. The auditor of disbursements has supervision of all expenditures of money, which is only paid out by the paymaster or treasurer upon vouchers and pay-rolls approved by proper authority. The vouchers and pay-rolls then form the grist upon which his office works, and from which are produced the credits to be given all officers and agents who disburse money, and the classified records of expenses, and comparison of the same with previous months and years, and between different divisions. I have thus outlined the skeleton of a railroad organization, and suggested briefly the relations between its most important parts, and some of the principles upon which its work is conducted. The scheme of authority is outlined in the diagram on page 185. But space is utterly lacking to clothe the skeleton with flesh and go into the innumerable details and adjustments involved in the economical and efficient discharge of all of its functions. It seems a very simple matter for a railroad to place a barrel of flour in a car, to carry it to its destination, and to collect fifty cents for the service. It is done apparently so spontaneously that even the fifty cents may seem exorbitant, and I have actually heard appeals for free transportation on the ground that the cars were going anyhow. So it also seems a very simple matter for a man to pick up a stone and place it on a wall. But this simple act involves in the first place the existence of a bony frame, with joints, sinews, and muscles, sustained by a heart, lungs, and digestive system, with eyes to see, a brain to direct, nerves to give effect to the will-power, and a thousand delicate adjustments of organs and functions without which all physical exertion would soon cease. Similarly, a railroad organized to respond efficiently to all the varied demands upon it as a common carrier, by the public, and as an investment by its owners, becomes almost a living organism. That the barrel of flour may be safely delivered and the fifty cents reach the company's treasury, and a part of it the stockholder's pocket, the whole organization outlined in the diagram must thrill with life, and every officer and employee, from president to car-greaser, must discharge his special functions. All must be coordinated, and the organization must have and use its eyes and Each road usually has its own individuality and methods, and its employees are animated with an esprit de corps, as are the soldiers in an army. There is much about the service that is attractive, and, on the whole, the wages paid railroad employees are probably in excess of the rates for similar talent in any other industry, although labor in every other industry in the United States is protected by high tariffs, while in this it is under the incubus of legislation as oppressive as constitutional limits will permit.
In Europe, where the pooling system practically prevails, the service is much more stable than in the United States, and in many instances there are pensions and insurances and disability funds, and regular rules for promotion and retirement, and provision for the children of employees being brought into service in preference to outsiders. Such relations between a company and its employees as must result from arrangements of this character are surely of great benefit to both. They are the natural outgrowth of stability of business. Their most advanced form is found in France, where each road is practically protected from dangerous competition by means of a division of territory. In the United States we are still in the midst of a fierce competition for territory and business, and, as pooling is forbidden, the railroad companies will be in unstable equilibrium until consolidation takes place. As that goes on, and large and rich corporations are formed, with prospects of stability in management and in business, we may hope to see similar relations established between our companies and their employees. Already there is a beginning upon some of the largest roads, such as the Baltimore & Ohio and the Pennsylvania Central. But the ground still needs preparation also on the employees' side, for our American spirit is aggressive and is sometimes rather disposed to resent, as interfering with its independence, any paternal relations with a corporation. And as we have before found railroad management in intimate contact with every problem of finance and commerce, it is here confronted with the social and industrial questions involved in labor unions and FOOTNOTES:Rates.—Watermelon rates; canned goods, Richmond to Atlanta; rates on cement from Eastern cities to Association territory; rates on sulphuric acid from Atlanta; rates from Atlanta, etc., to California and Transcontinental terminals; special iron rates from Cincinnati, etc., to Carolina points; rates on earthenware, East Liverpool to S. E. territory; rates on cotton bags to Memphis from Atlanta; rates on fertilizers to Mobile, Ala.; beer rates; rates on special iron articles from Chattanooga; rates from the West to Camden, S. C.; rates from Evansville and Cairo, on business from points between Cairo, Evansville, and Chicago. Classification.—Classification of paper twine; beer packages, empty returned; old machinery returned for repairs; steel car springs; cotton softener; iron safes or vaults weighing over 12,000 lbs.; toys, etc.; portable powder magazines; coffee extract; empty lard tierces returned; bolts and nuts in barrels; box and barrel material; glass oil bottles in tin jackets; cast-iron radiators; malleable iron castings; dried beef; sausage; straw paper; burlaps; tobacco stems; hinges; straw braids; lawn hose reels; excelsior; car-load rates. Subjects not on the Regular List.—Demurrage rules; adjustment of rates as per instructions from the Executive Board; rates from Cincinnati to Columbus, Eufaula, Opelika, etc.; classification of iron tanks; classification of whiting; rates to Eufaula, Ala., from East; rates to Milledgeville, Ga.; classification of cast-iron cane mills; classification of locomotives and tenders. |