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let the "theorists" run their shops. But where those "theorists" have been given full sway, as they have in some places during the past few years they have confounded the scoffers. For one thing they have obliterated from the toiler's list of maxims the first and most obnoxious one from the master's point of view—"The least service for the most pay." If the theorists had done nothing more than that they would be entitled to wear wreaths and halos. But they have done much more.
Take as a luminous example, the work of Harrington Emerson in bettering conditions on the Santa Fe system. There had been a disastrous strike in the shops, and when Mr. Emerson was set to work to straighten out conditions most of the employees were very hostile to the management. No one could have gone to work to carry out the principles of scientific efficiency under more unfavorable, 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 Topeka 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 Fe shops belting was nobody's care. The only official who showed any interest in it was the claim agent who on one occasion had induced
the shop men to take a lot of singed and water-soaked belts from a wreck after they had been refused by a consignee. The belts were constantly breaking and every break entailed a loss of time to machine anil mechanic, and what "was more important, held locomotives in the shops, preventing the movement of trains and decreased revenue. Under the old system a premium—overtime— had been offered on breakdowns. New belts of the best quality were put in and the cost for belt repairs was reduced in one year from $12,000 to $630, while the saving in time and increase in revenue from that source alone was many times the original sum.
But the belt demonstration was only the razor edge of the entering wedge. The system was extended to the maintenance of all shop machinery and tools. In the year 1903-4, which included only a month or so of the Emerson efficiency
work, what is known as the unit cost of the maintenance was $10.31. By June, 1907, this cost was reduced to $4.89 and in 1909-10 it dropped to $3.24. With a 60 per cent, increase of work, maintenance costs dropped 51.4 per cent.
Meantime improvements were going on in other directions all along the line— the revision of grades, new designs for locomotives and cars, water purification, welfare work that decreased and finally eliminated the hostility of the workman to the company, and most humane of all. a pension system for wornout employees.
Like all men of broad vision, Emerson has faith in men. He believes in their heart-in-heart goodness and he knows that the main cause of their hostility to their employers is mismanagement. It was his belief in the men of the Santa Fe, from top to bottom, that more than anything, has resulted in his great victory over bad conditions on that system. Ten thousand pamphlets conveying the principles of standard practice instruction were distributed among the employees of the road. The mottoes were: "Fairness, not favoritism; efficiency not drudgery: individuality, not subserviency." The generous attitude of the company is set forth in the following opening sentences of this booklet:
"The employee wants as high wages as he can get. The employer wants his output to be as cheap as that of his competitors. Both desires are reasonable and the problem is to reconcile them without injustice to either party.
"An absolutely clear understanding of the problem by both parties is necessary.
"The worker cannot be expected to work for one employer for less pay than is paid under similar conditions for the same work by another employer. The wage payer will not pay higher wages
than the current rate or than the business conditions permit. There may be, however, quite a gap between the wages paid by competitors and the higher wages the employer would be willing to pay if it can be proved to him that it is to his advantage to do this. Wages above current rate should result from individual effort."
The men liked the ring of these words and all the competent ones were pleased by the individual appeal that was afterward made to them. For example, instead of "pooling" locomotives the Santa Fe assigned each engine to a regular and competent crew. By this system the engineer was made to feel an individual interest in his machine and an individual responsibility and anxiety for its condition and repair. Engine "failure s" were thus reduced from 11,880 in 1907 to 6,952 in 1908. On the Santa Fe an engine failure m e a n s any trouble with a locomotive that causes a delay of five minutes or more to a train, and every failure is followed by an investigation. Twenty-five per cent, of the power was formerly out of service, but this percentage was reduced to thirteen.
Not alone to individual responsibility, but more to efficiency reward does the Santa Fe owe the great success of its experiment. Each man is employed at a definite and equitable hourly rate of wage, paid to him without regard to his efficiency. Definite time unit equivalents are stated in advance for each operation assigned, by which the man must give a fair hour's work for a fair hour's pay. This fair hour's work for a fair hour's pay is called 100 per cent, efficiency, and if he attains this efficiency the worker is paid a bonus of 20 per cent. As efficiency diminishes the bonus diminishes. At 90 per cent, efficiency the bonus paid
OLD METHOD OF OILING TRUCKS, WHICH REQUIRED TWO MEN HALF AN HOUR PER CAR.
Santa Fe railway yards, Los Angeles.
Til K WRONG WAY OF LAYING OUT THE 1SRICK FOR THE WORKMEN'S USE.
THE RIGHT WAY—IMPROVED METHOD OF HAVING THE BRICKS ON PACKETS AND THE
When on March 20, 1905, efficiency work was begun in the matter of locomotive repairs an enumeration was made of all locomotives and the sum of their detentions in the Topeka shop, a total of 1,735 days for fifty-six locomotives. A year later, by applying rigid rules of efficiency the sum of detentions had sunk to 254 days and a larger number of locomotives had been repaired.
In some instances greater economies were effected than were attempted. When Mr. K e n d r i c k called Mr. Emerson's attention to the high average of locomotive repair cost it was seen that in 1904-5 it amounted to $4,165 for each engine. Mr. Kendrick wanted the cost reduced to $3,165 for each engine. Mr. Emerson cut it down to $3,037. The miles run between locomotive failures on a difficult division was increased from 4,377 in 1902 to 20.000 in 1909.
In the matter of car repairs the introduction of efficiency principles has worked wonders of economy. Simpler processes for doing things have been devised. For example, the oiling of trucks has been simplified by the use of a compressed air machine. By the old hand method it took a man an hour to oil the trucks of a car; now it takes two men only five minutes.
Such men as Louis D. Brandeis, H. L. Gantt, and Charles B. Going, who have closely observed the methods pursued by Mr. Emerson in his efficiency work on the Santa Fe, are enthusiastic in its praise. It was the study of this work that led Mr. Brandeis to make the offer to the railroads that were threatening rate advances that he would save them a million a day and charge nothing for the service. Mr. Brandeis' intention was' to employ Mr. Emerson as the head of a general school of efficiency that would save the roads the sum mentioned every
day of the year. Some of the companies are willing that the plan should be tried, but others demur, sticking to old methods, though they are only staving off the inevitable.
On a lesser scale than that of the Santa Fe, efficiency work has been tried on the Southern and Union Pacific, and has shown excellent results. It will not be long before all the lines of the great llarriman system will introduce these methods, but the objections of wise old master mechanics will first have to be overcome.
Under its progressive president, Mr. L. F. Lowe, the Delaware and Hudson system has made marked improvements by the introduction of efficiency methods. The Erie system, which had been much run down, has also tried the plan, particularly in the matter of coal consumption. On a certain watched locomotive it was found possible to cut down the fuel bill over sixty per cent. An effort is being made to standardize this performance, and though it may not be successful a big saving is bound to result.
The advanced mechanical practices of the Union Pacific have resulted in considerable savings, and so have those of the Northern Pacific, the New York Central, the New York, New Haven and Hartford and the Boston and Maine. But Mr. Brandeis, the most enthusiastic of all the disciples of Taylor, the "Father of Efficiency," will never rest content until he has induced all the railroads of the country to try the improved methods. Brandeis is not doing this so much for the railroads as he is for the people, for whom he has made many a good fight. He believes with H. L. Gantt that with increased freight rates come increased prices, that with increased prices come higher cost of living; with higher cost of living comes a demand for