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A fair sample of the scene at any dock on the arrival of any liner. U. S. customs officers

inspecting baggage.

"Making the Tourist Honest."-p.36.

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IVE an American a few master minds as to stagger the imagina

tons of dynamite and a tion of the men of the old school of mountain to bore through wasters whose motto was "Get there,” in a month and he is and who recked not of the cost.

happy," said an efficiency Yes, the science of business and indusengineer to me the other day. “Ameri- trial efficiency, scoffed at by the headcans love to do big things in a great long egoists who thought they were hurry. They despise small things. A doing big things in the best way, but structural shop orders the supplies from often were only misdoing and wasting, a rolling mill. The big beams are has been tried out and may be definitely promptly shipped. The angles and and demonstrably declared to have won. smaller pieces do not come for weeks or The science of efficiency! Here is a months. The superintendent of the new, big, vital and tremendously imporstructural shop pleads for permission to tant subject that is engaging the best begin work immediately on material not minds in some of the great industrial deliverable for three months. If per- plants of the country, and has been taken mitted to do the work ahead of time he up by some of the railroads which are clamors for permission to ship it. He emulating the luminous example of the is always ahead on big work, always be- Santa Fé, a railroad company that has hind on small work, and this means a done wonders in conserving its own great waste of time and energy.”

forces, saving millions of money and orBut we are coming to the day when ganizing its workmen on a system that the smaller things will be recognized as is nothing short of altruistic. of as much importance in the problem of Who conceived this principle of effiproduction as the larger, the day when ciency, the thing that is now so intenthe man beside the machine and his ca- sively engaging the master minds of inpacity for work and wage will be more dustry? Well, of course the idea of closely considered. In fact, in certain economy in production has always been centers where the big activities hold insisted upon by the heads of great sway there is already a mighty and suc- plants, but time has shown that it has cessful effort toward right planning, not always been intelligent and successful right execution and right reward for economy, and as for humane dealings the toiler. In these places such marvels with employees, they rarely have been of economy are being wrought by bright considered in the scale. But think of but it is only of recent years that it has received its great impetus. Taylor introduced a differential rate system for the employees by which those that could do a certain amount of work in a day received a certain amount for each piece, while those that were not capable of reaching the standard were given a smaller rate. Under the old piece work plan, a man that had been turning out five pieces a day received $2.50. Under the new system when they turn out ten they receive $3.50. Thus the total cost of a piece was reduced from $1.17 to 69 cents while the daily pay of the man was $1 more.

Then Taylor introduced into the same plant a method of dividing the work of tire-turning into a number of short operations, fixing a certain time and pay for each. This new system increased the output from the tire department fully thirty-three per cent.

So successful was Taylor at Midvale with his new


that other manufacturers The celebrated lawyer, Louis D. Brandeis, who told the railways how

employed him to improve conditions in their shops

and factories. He worked an economy both intelligent and suc- quietly and nearly always made marked cessful and in which the idea of the fair improvements. Meantime he devoted deal is always uppermost; for without himself to the study of efficiency, both the fair deal there can be no economy for the benefit of employer and employee. and no efficiency. Let us give credit Other men, followers of his, have gone where credit is due. After a careful farther in this line and made more famous study of the genesis of this great move- successes, but such distinguished stument I find that to Frederick W. Taylor, dents of efficiency as Louis D. Brandeis, formerly chief engineer of the Midvale Frank B. Gilbreth, Harrington EmerSteel Works, belongs the honor of in- son, and H. L. Gantt acknowledge themtroducing scientific efficiency in this selves as disciples of Frederick W. Taycountry. Some of the men who are doing lor. things in his line call him “the Father of It has taken a good many years to get Efficiency," and he deserves the title. the idea of scientific efficiency into the

Scientific labor management had its minds of our captains of industry. A first successful demonstration at the large proportion of them still adhere to Midvale Works in the latter eighties, the old methods and are not willing to



to save a million a day.

let the "theorists" run their shops. But the shop men to take a lot of singed and where those "theorists” have been given water-soaked belts from a wreck after full sway, as they have in some places they had been refused by a consignee. during the past few years they have con- The belts were constantly breaking and founded the scoffers. For one thing they every break entailed a loss of time to have obliterated from the toiler's list of machine and mechanic, and what was maxiins the first and most obnoxious one more important, held locomotives in the from the master's point of view—"The shops, preventing the movement of least service for the most pay.” If the trains and decreased revenue. Under theorists had done nothing more than the old system a premium-overtimethat they would be entitled to wear had been offered on breakdowns. New wreaths and halos. But they have done belts of the best quality were put in and much more.

the cost for belt repairs was reduced in Take as a luminous example, the work one year from $12,000 to $630, while the of Harrington Emerson in bettering con- saving in time and increase in revenue ditions on the Santa Fé system. There from that source alone was many times had been a disastrous strike in the shops, the original sum. and when Mr. Emerson was set to work But the belt demonstration was only to straighten out conditions most of the the razor edge of the entering wedge. employees were very hostile to the man- The system was extended to the mainagement. No one could have gone to tenance of all shop machinery and tools. work to carry out the principles of sci- In the year 1903-4, which included only entific efficiency under more unfavorable, a month or so of the Emerson efficiency or, indeed, demoralizing conditions than those that confronted Mr. Emerson when he faced the situation. It was a man's game and it was played by men. Here were twenty shops, large and small, scattered along nine thousand miles of railroad in twelve different States, with twelve thousand disgruntled mechanical employees to deal with and fifteen hundred locomotives and fifty thousand cars to care for and keep running.

President Ripley, a man of clear vision, who had come to have full confidence in Emerson and his theories, after several interviews with him, made him consulting engineer to study conditions and advise betterments, and VicePresident Kendrick rolled up his sleeves and went to work with him.

The crying need was to get the equipment in shape. Emerson did not begin to megaphone orders to everybody. He went quietly into the main shop at To. peka and began to study mechanical conditions. The first thing he found out was that something was wrong with the belts that carried the power to the machines. Now belting is an insignificant item in railroad operation, but much turns upon it, literally as well as figuratively. In the Santa Fé shops belting was nobody's care. The only official who showed any interest in it was the claim E. P. RIPLEY, PRESIDENT OF THE SANTA FÉ. agent who on one occasion had induced He is fully alive to needed improvements in railroad work, what is known as the unit cost of than the current rate or than the busithe maintenance was $10.31. By June, ness conditions permit. There may be, 1907, this cost was reduced to $4.89 and however, quite a gap between the wages in 1909-10 it dropped to $3.24. With a paid by competitors and the higher 60 per cent. increase of work, mainten- wages the employer would be willing to ance costs dropped 51.4 per cent.



pay if it can be proved to him that it is Meantime improvements were going to his advantage to do this. Wages above on in other directions all along the line- current rate should result from indithe revision of grades, new designs for vidual effort.” locomotives and cars, water purification, The men liked the ring of these words welfare work that decreased and finally and all the competent ones were pleased eliminated the hostility of the workman by the individual appeal that was afterto the company, and

ward made to them. most humane of all, a

For example, instead pension system for

of "pooling” locomowornout employees.

tives the Santa Fé asLike all men of

signed each engine to broad vision, Emer

a regular and comson has faith in men.

petent crew. By this He believes in their

system the engineer heart-in-heart good

was made to feel an ness and he knows

individual interest in that the main cause of

his machine and an their hostility to their

individual responsibilemployers is misman

ity and anxiety for its agement. It was his

condition and repair. belief in the men of

Engine “failures” the Santa Fé, from

were thus reduced top to bottom, that

from 11,880 in 1907 more than anything,

to 6,952 in 1908. On has resulted in his

the Santa Fé an engreat victory over bad

gine failure means conditions on that sys

any trouble with a tem. Ten thousand

locomotive that causes IN LAYING BRICKS APPRENTICES SHOULD BE pamphlets conveying

a dela y of five the principles of

minutes or more to a standard practice in

train, and every failstruction were distributed among the ure is followed by an investigation. employees of the road. The mottoes Twenty-five per cent. of the power was were: "Fairness, not favoritism; effi- formerly out of service, but this perciency not drudgery; individuality, not centage was reduced to thirteen. subserviency.” The generous attitude of Not alone to individual responsibility, the company is set forth in the following but more to efficiency reward does the opening sentences of this booklet: Santa Fé owe the great success of its

“The employee wants as high wages experiment. Each man is employed at as he can get. The employer wants his a definite and equitable hourly rate of output to be as cheap as that of his com- wage, paid to him without regard to his petitors. Both desires are reasonable efficiency. Definite time unit equivalents and the problem is to reconcile them are stated in advance for each operation without injustice to either party.

assigned, by which the man must give a "An absolutely clear understanding of fair hour's work for a fair hour's pay. the problem by both parties is necessary. This fair hour's work for a fair hour's

"The worker cannot be expected to pay is called 100 per cent. efficiency, and work for one employer for less pay than if he attains this efficiency the worker is paid under similar conditions for the is paid a bonus of 20 per cent. As effisame work by another employer. The ciency diminishes the bonus diminishes. wage payer will not pay higher wages At 90 per cent. efficiency the bonus paid




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