Among the best purchasing bureaus in the United States are those of the

Harriman Lines. As I understand it, their able director of purchases

does not, as many people suppose, scrutinize all requisitions. Each of

the eight vice-presidents and general managers has his own purchasing

agent, who, under the broad policy of local autonomy, buys many

articles as best he can. Those large items which experience proves can

best be bought for all by the director of purchases, are so purchased

under blanket contracts. For those items the local purchasing agent

becomes an ordering agent. The point of it all is that no iron clad

rule is laid down. Because some items can best be purchased in bulk, it

does not follow that local administration should be hampered by

requiring all items to be so procured. Instead of a narrow, rigid rule,

there is a broad policy enunciated which permits the discriminating

judgment of experience, to decide questions on their individual merits

under the ever-changing conditions of service.

When railroads are older similar broad treatment will be accorded other

features of operation as well as supplies and purchases. Broad policies

and individual judgment will gradually supplant attempts to decide

questions in advance in accordance with preconceived notions of

probable conditions.

The evolution of the so-called store department on most railways has

been a striking instance of one-sided development. A railway exists to

manufacture and sell an intangible commodity, transportation, not

necessarily to carry either a large or small stock of material and

supplies. The purchasing agent tells us in good faith how much money he

has saved the company by time spent in driving good bargains. He is not

in a position to know how many men have been worked to poor advantage,

or have been idle, while waiting for proper tools, materials and

supplies. Such features of economic waste are not always the fault of

the purchasing agent. The general storekeeper and the local

storekeeper, ambitious for low stock records, may hold down their

requisitions. It is so easy to say that a telegram will bring a

cylinder head or other spare part to the desired point. If meantime a

big locomotive has been out of commission in a distant roundhouse for

two or three days and a light engine has been sent to protect the run,

there is nothing in the store accounts to reflect this needless

expense. The individual batting averages are high, but some way the

team is not winning games.

One of the fallacies introduced by the store people is that the user of

material cannot be trusted with its custody, because he will carry too

much stock, due to an exaggerated view of future necessities. This

mistaken theory is carried to the extent of denying to the division

superintendent the custody of fifty shovels to be used by the emergency

gang of fifty men which it is entirely within his province to order out

to clear the road. The men he can command. The shovels, without which

the men are useless, he must beseech from a storekeeper receiving,

perhaps, one-third as much salary as himself. Of course, in an

emergency, the superintendent takes the shovels, anyway. As I said

before, it is a pretty poor system that breaks down in an emergency.

The test of a system is an emergency. I confess my inability to see

that being a user of material necessarily makes a man more indifferent

to the company's interests. Perhaps it is the same habit of mind that

causes me to deny greater rectitude to the man in the accounting

department.

The user of material has undoubtedly been careless in many cases. Will

he not become more careless if relieved of responsibility and informed

that he cannot be trusted? When children err, the wise parent does not

disown them. From his fund of riper experience, he helps them by

impressive teaching to gain a proper viewpoint. Similarly, the general

storekeeper should control the superintendent and teach the latter the

most economical handling and use of material and supplies. Control is

comparatively valueless without authority. This authority can be most

effectively conveyed by rank. The general storekeeper should not be a

keeper of a general store. He should be a general officer, under the

general manager, superior in rank and pay to the division

superintendent. Instead of the superintendent being relieved from

responsibility, he should be held to a greater accountability. The

reformed and reconstructed bandit often makes a relentless police

chief. The despised user of material under proper organization becomes

the zealous conserver and protector.

The general storekeeper, like the chief mechanical officer, should be

located in the same building with the general manager. There is no more

reason for locating either one at a store or at a shop than there is

for locating a general superintendent in a switch shanty near a yard.

General officers must see the whole property and maintain a balance

among its component units, which are normally operating divisions. If I

were you, as between your purchasing agent and your general

storekeeper, I would appoint the most experienced an assistant general

manager, so that his office file can be logically and consistently

consolidated with your own. The other of these two men I would make

purchasing agent with a distinct title and a separate office file,

because of his large volume of business with outside persons. Such

assistant general manager would be in effect manager of supplies and

purchases, the trained expert seeing the whole problem of operation and

deciding normally what material and supplies the company needs. Under

such assistant general manager, would be the purchasing agent, a staff

officer, specializing on the technique and psychology of bargaining.

Such assistant general manager, as a line officer, would be his own

general storekeeper and would hold division superintendents responsible

for the stores on their respective divisions. His work would be

co-ordinated with that of the other assistant general managers by the

chief of staff, the senior assistant general manager.

The organization thus outlined would preclude the necessity for the

usual perfunctory approval of requisitions by the general manager. The

assistant general manager for supplies would normally put the final

approval on requisitions. Large or exceptional items the general

manager would approve. When differences of opinion developed among the

interested assistant general managers as to the relative ultimate

economy of different mechanical or structural devices, the general

manager would be invoked to give a decision that really would be worth

something, because made after considering different viewpoints. Under

the old order of things, the superintendent of motive power or the

chief engineer is tempted to seek the ear of the general manager on the

latter's best natured day to put over a requisition for some pet

device. So sporadic is the comprehensive consideration of requisitions,

so perfunctory is the usual approval, that the general manager

frequently tells his purchasing agent not to take the former's approval

too seriously, and to hold up approved requisitions about which the

latter is doubtful. This is another species of unconscious

administrative cowardice which attempts to put on the subordinate the

burden of responsibility for a departure from the normal. True

organization and administration demand normal procedure by

subordinates. At normal speed, the administrative machine should run

well balanced. When the speed becomes great enough, higher authority

should be a governor brought into action more or less automatically.

Telling a subordinate habitually to question the acts of his superior

has the same cheapening effect as unchecked disregard of block signals.

It puts higher authority in the undesirable attitude of exploiting a

fad, or an over-worked system, rather than of demanding reasonable

compliance with proper and logical requirements.

Have we not overdone the matter of low working stocks? Is it not more

expensive for a railroad to carry too small a working stock of material

and supplies than one too large? Is not the problem too extensive to

warrant very rigid comparisons as between different roads? Like the

average miles per car per day, does not the equation contain too many

variables to admit of a very exact solution? Can we compare effectively

the dissimilar conditions involved in climate, distances from producing

and distributing centers, character of predominating traffic, etc.? Are

not some records for seemingly low economical stocks based upon the

fallacy that it costs the company nothing to ship and reship its own

material? Where would these records land if company material carried a

freight charge of, say, 5 mills per ton per mile? Is it not more

economical to handle numerous items of supply in carload lots

regardless of average monthly consumption? Have we given due weight to

the concealed items of expense in arriving at conclusions as to the

cost of handling company material and supplies?

Two of the best-managed roads in the country, the Pennsylvania and the

Big Four, had no stores departments the last time I inquired. At the

other extreme, we find the Santa Fe and the Lake Shore carrying their

departmental system to their stores in an intensified form. In

between--that happy medium which I mentioned to you--stand the Harriman

Lines with division stores under the division superintendent, who in

turn as to supply matters is under the general storekeeper or other

chief supply official, the latter already having in some cases the

title and status of an assistant general manager. The man in direct

charge of the one general store which is allowed each general

jurisdiction is called a storekeeper. The underlying conception is that

railroad stores are maintained to help make the wheels go around, that

all supply activities should be concentrated upon the most economical

manufacture and sale of transportation.

This brings us to another phase of the problem. Frequently a railroad

as a plant is adequate to manufacture more transportation than it can

sell. The other fellow is getting too much of the competitive business.

Investigation often shows that railroad solicitors can sell a shipper

no freight or passenger transportation, because his salesman receives

no orders from the railroad's purchasing agent. The industrial bureau

of a traffic department works to create new business which is fostered

by discriminating freight rates. Yes, I stand up and use the word

"discriminating," because, when properly understood, it implies

intelligence and science, and is therefore one of the finest words in

the language. This good work of the traffic department in creating

wealth and developing industrial communities in territory local to a

particular road may be largely lost to that road because its purchasing

agent, consciously or unconsciously, fails to exercise proper and

legitimate discrimination in the performance of his important function.

At first blush, in these days of doubting insinuation and hysterical

aspersion, when a railway official is often denied the presumption of

possessing common honesty, when the burden of proof is to show him as

having average rectitude, such a statement may be construed by

distorted minds as a plea for subtle forms of rebating. Tenuous as may

seem the line here between right and wrong, it can in a given case be

readily determined. Too often apparent complexities are only the result

of an abstruse contemplation of abstract possibilities. Give honest,

fearless, practical treatment to each concrete case as it arises,

indulge more in inductive reasoning which predicates laws upon facts,

not facts upon laws, and complexity gives way to common sense.

Transportation is the most exacting, the most diversified, the most

far-reaching of commercial and industrial activities. It follows then,

under the law of the survival of the fittest, that those who can

survive in the art and science of transportation must be the fittest of

the fit. In their hands can safely be left the solution of these

difficult problems.

After three years of satisfactory experience with division accounting

bureaus, the Harriman Lines have extended such activities to include

the division stores. This is done by moving the division storekeeper,

his accounting and correspondence clerks, to the division

superintendent's office in order that division records may be

consolidated in one file and division accounts in one bureau. A

division material-on-hand account is included. The necessary issue

clerks, foremen, etc., are left at the storehouse, which is often a

mile or two from the superintendent's office. Another avowed object is

to get the division supply people closer to the train sheet, to give

propinquity a chance to develop love, and to counteract that

we-are-so-different feeling which comes on many railroads, not only in

the spring, but under all signs of the zodiac. The logical development

on divisions of considerable volume of supply business will be to make

the division storekeeper an assistant superintendent. This method of

store accounting is relatively closer to real transactions, especially

where the division supply train is used, than might be supposed. On the

Hill lines, the store accounting is done in the general auditor's

office, perhaps one or two thousand miles from the store itself, a

decidedly long range proposition. Which policy is better is of course a

question of opinion. A man's views on organization and methods are

largely a matter of temperament and association, just as his politics

and religion depend usually upon heredity and environment.

Affectionately, your own,

D. A. D.

LETTER XVII.

CORRESPONDENCE AND EXPLANATIONS.

Portland, Ore., July 29, 1911.

My Dear Boy:--The man who is successful in the exercise of authority

soon learns to be something of a buffer between his superiors and his

subordinates. He learns to temper justice with mercy. In this little

railroad game of ours there has often been an unconscious departure

from this rule of conduct. The word "why" should ask for an increased

overtime rate in its next working schedule. Somebody at the top is

peeved because a train comes in late. He asks the next man below,

"Why?" Down goes the inquiry through the baskets of offices whose files

contain the desired information, because it is so much easier to write

another man a letter than to dig up one of our own. The final inquiry

is to a man who has already rendered one report or explanation. It

would be a pretty poor sort of recording angel that would register

against this underling the more or less justifiable profanity in which

he then indulges.

Up in this part of the country, where they do some mighty good

railroading, is a big hearted general officer, who once, during a

blizzard, directed his superintendents to order train and engine crews

to disregard block signals forced out of commission by the elements. A

section foreman went out to change a rail with the traditional one man

who could not flag both ways. So the section foreman, with the rail

out, relied upon the [automatic] block signal for protection. Along

came the train with orders to disregard the signal--and the engine

landed in the ditch. There was some official talk of discharging the

section foreman. The big general officer faced the music and said, in

effect, that if any enforced vacancies were to occur he himself must be

the man. "Furthermore," he added, "we have learned something; if we are

ever again tempted to disregard block signals, we will first notify

everybody on the railroad, including the section foremen." Such

manliness is the rule rather than the exception among railroad

officers. It is a practical kind of honesty which counts in the great

art of handling men.

The lesson to be drawn is that we should all be just as honest and

considerate for the man below in the conduct of our offices as in the

face to face contact of outside activities. The first thought of an

official and of his chief of staff should be to avoid humiliating a

subordinate. A letter demanding an explanation accumulates much

momentum of censure while traveling, perhaps from the general offices,

through the channels to an agent, a yardmaster, a conductor, or a

foreman. The tendency of each office is to unbottle a little more of a

never-failing supply of suppressed indignation. By the time the return

explanations and apologies have trekked back across the plains to the

starting point, the whole incident is often as much ancient history as

the days of '49.

Yes, we must have explanations for certain irregularities. The taste

for such office pabulum is more or less cultivated. It is a kind of

diet which demands vigilant restraint of appetite. It does not increase

the self-respect of a faithful old employe to write a schoolboy

explanation of something that looked badly on paper in a distant

office. Actual experience has demonstrated that discipline can be

maintained, efficiency increased, and loyalty engendered by greater

politeness and consideration in official correspondence. Instead of the

superintendent or trainmaster writing to a conductor, "Why did you

delay No. 1 at Utopia when you pulled out a draw-bar on the main track

on the 32nd?" why not say, "It is claimed that quicker work on your

part would have avoided delay to No. 1 when your train pulled out a

draw-bar, etc." This leaves it open to the man to explain or to let the

matter go by default. The employe who lets too much go by default is

soon well known to his officers and his cases will receive the special

treatment they deserve. Some officials devote more time to the

gnat-heel measure of explanations than to a broad analysis which will

prevent future irregularities.

To some officials, papers on the desk are a nightmare. For the sake of

a clean desk they will write unnecessary letters and pass the papers to

the men below. The road will not go to pieces if many papers are held

for a personal interview next trip. Because it is now and then

desirable to force some old buck to go on record is no reason for not

separating the sheep from the goats and avoiding the necessity for a

record in a majority of cases. This is another instance where L.C.L.

judgment is worth a whole trainload of rigid bumping posts.

Among the many advantages of the chief of staff should be his ability

to prepare explanations for higher authority from routine reports at

hand without making a special reference of papers to offices below.

Your old dad takes considerable pride in the fact that he never

consciously wrote a sharp letter to a subordinate. Once, when a

trainmaster, and sick in bed, he dictated in a letter to a conductor,

"Hereafter, please take _sufficient_ interest to see that switches are

properly locked." The stenographer improved the phraseology by writing,

"Please take _special_ interest, etc."--see the difference?--which

happy circumstances caused the conductor to come to the sickroom and

express his undying devotion to the cause of locked switches. A

personal interview with a conductor, however, is worth a dozen letters

by a trainmaster.

These same observations apply to the general manager as well as to the

trainmaster. The higher one goes, the more consideration must he

cultivate. If you have something disagreeable to get out of your system

and the typewriter is your only recourse, take it out on your superiors

rather than your subordinates. It is better for the company to have you

fired for insubordination than for you to demoralize the service by

rawhiding men below. You must carry out the policies and instructions

of your superiors. The success of your administration will depend upon

the manner in which you execute the wishes of your superiors and upon

the methods you pursue, as much as upon the inherent merits of the

policies themselves. Flattering yourself, as you probably do, at being

the happiest of the happy in the medium line, see how safe a middle

course you can steer. It will take another generation to eradicate

feudalism in railroad administration. Those whom Fate, opportunity, or

desire has landed in the railroad game must abide by the existing

rules. If out of accord with the policies of those above, be a good

sport and resign like a gentleman. Before doing so, however, be dead

sure that you have not mistaken some trifling inconsistencies of

methods for real incompatibility warranting voluntary separation.

A good friend and a good superintendent down south recently asked me to

preach a little on the necessity for a more dignified tone in railway

correspondence. He cited his correspondence with government offices as

an example of dignified expression. Instead of saying, "Please advise

me," or, "Kindly let me know," or "I wish to be informed," they use

some such impersonal expression as, "Please advise this office," or

"Kindly favor the department," or, "This bureau desires information

concerning, etc." Some people say they like to have an official or an

employe act as if he owned the property. I would not. A man will ride

his own horse to death. When acting as trustee, guardian, or fiduciary,

he will perhaps conserve the property entrusted to his charge more

carefully than if it were his own. Is not a careful trustee better than

a careless owner? Railway officials are trustees as well as hired

hands. Through long traditions of service, the government officer,

however hampered by certain limitations that are inherent in government

administration, forms a habit of mind which prompts first attention to

his employer rather than to himself. On railways we are equally loyal,

but are cruder in our manifestations. We have the feudal conception of

"_my_ railroad" rather than that of "the railroad on which I have the

honor to be employed."

Following the same reasoning, it is better for a man to sign, "John

Doe, for and in the absence of the General Manager," than "Richard Roe,

General Manager, per John Doe." When John Doe acts in the place of

Richard Roe, the former has become the representative of the company,

rather than a facsimile of Richard Roe. The act of John Doe binds the

company, and the papers should show on whom personal administrative

responsibility must be fixed. The phrase, "For and in the absence of,"

explains to the recipient the departure from normal procedure, and to

the company's future reviewer is John Doe's explanation or apology for

seeming usurpation of the functions of higher authority.

When you have signed a letter, no matter by whom suggested or prepared,

it becomes your act for which you are responsible. Do not have its

effect weakened by showing in the corner of the original the initials

of the persons dictating and typewriting. Whether or not such initials

shall be shown on your file carbon for the sake of future reference is

a matter of taste. Such carbon copy record can be made either by a

rubber stamp or by typewriter. With the latter method some

stenographers prefer to slip in a piece of heavy paper to blank the

original and to save the trouble of removing the outer sheet from the

machine. The point is that, however desirable such information may be

for your own office, it is no concern of the recipient of the letter.

It is much more important that the carbon copy should show by rubber

stamp or otherwise who actually signed the original and became

responsible for that completed stage of the transaction.

The impersonal form of address used in government correspondence

precludes the necessity for printing the names of officials on letter

heads. Illegible signatures are a pretty poor excuse for attempting to

issue an official directory in the form of a letter head. The working

conception of the self-perpetuating corporation falls short if we must

alter or reprint our stationery every time an official is changed.

Letters from an Old Railway Official. Second Series: [To] His Son, a General Manager · 第 8 / 10 段