The departmental type of organization differs from the divisional essentially in the scope of action permitted the division superintendent. Under this type, the division engineer and master mechanic no longer report to him but are wholly responsible to their technical superiors, the chief engineer and the superintendent of motive power, these chiefs not only fixing standards but also decreeing time and method of performance. The primary purpose of such an organization is to insure greater technical efficiency, but, incidentally, it relieves the division engineer and master mechanic of the difficulties which result from serving two masters. This plan is used almost exclusively in England where, because properties are more compact and accuracy receives greater emphasis, it has survived the test of time. But, despite its success there, it is unlikely that the departmental type of organization will be widely accepted by American roads in the face of the generally satisfactory results which have been obtained under the divisional type. The better adaptation of the latter to railways which traverse half a continent, the stress upon immediate results, and the existence of divisional rivalry which has been utilized so successfully by the railways in the accomplishment of maximum results, would seem to make it a permanent characteristic of American railway organization. RAILWAY PURCHASING The purchasing agent is another officer of the railway generally chosen by the directors. He usually serves with that title, though occasionally has the rank of vice-president. In earlier times, and under less highly developed organizations, railway purchasing was done by a number of individuals. This plan, however, proved unsatisfactory. It was inefficient, particularly because of consequent piecemeal buying and the absence of any standardization of materials; it was also objectionable because few such hydraheaded staffs were wholly free of dishonest dealing. To overcome the weaknesses of decentralized buying, all purchasing activities are now centered in one office and the responsible director has, as an additional function, the storage of supplies and their distribution upon requisitions from the proper officers. The magnitude of the purchasing agent's task can only be appreciated by one who has been in a large railway "store"; here is to be found everything from pins and paper clips to great castings and tons upon tons of miscellaneous steel and rails, the variety of items included being almost comparable to the listings of a mailorder catalog. Immediately subordinate to the purchasing agent may be certain assistant purchasing agents, some of whom are often in charge of single important items such as coal, lumber, steel, and so forth, while others have more general scope. Reporting also to the purchasing agent is the chief stationer in charge of office supplies, and one or more general storekeepers. To them report in turn the storekeepers who act as custodians of local stores of material. Large railway systems maintain from one to three "general stores," with smaller stores at practically every division point. THE REAL ESTATE AGENT The final official whose work justifies consideration here is the real estate agent, who may be designated by that title alone or as vice-president in charge of real estate. This official, generally chosen by the board of directors, performs, with the assistance of any assistant real estate agents he may have and such local agents as may be needed, four functions. He directs the purchase and sale of all real estate by the corporation and executes all rental contracts between the railway and private individuals contracts concerning the lease of ground for elevators, warehouses, coal sheds, or the rental of building space. A third function is to handle all tax matters; tax payments are made through the office of the real estate agent and here rests the responsibility of handling the problems and disputes which arise regarding the taxation of railway properties. The final function discharged by this organization concerns insurance. Railway policy with respect to insurance varies rather widely: certain railways feel that it is to their advantage to insure wholly with outside corporations, while others have adopted the policy of meeting all losses from a special insurance fund set aside by them. Some roads carry their own risk except on large structures, while others follow yet different plans. Whatever the method of insurance may be, however, its execution rests in the hands of the real estate department. THE EFFICIENCY OF RAILWAY ORGANIZATION With the organization just outlined the American railway endeavors to accomplish its dual purpose, to serve the interests of its stockholders and to render effective transportation service to the public. On the whole, both groups have been served faithfully and well. That many carriers have failed in one or the other purpose, or in both, is to be regretted, of course, but such failure has rarely been chargeable to the plan of organization or to the conduct of the faithful thousands of major and minor employees who man the great railway net of America; rather, it lies at the door of "men higher up," or is attributable to circumstances over which man has little control. However, a marked improvement in the soundness of the railway financial structure, the greater efficiency of organization, and a higher sense of public obligation on the part of officers and employees alike, should make future failures even fewer and less serious than those of earlier years. With this preliminary survey of the organization of the railway for service, an examination will be made in successive chapters of the services performed in the transportation of freight, passengers, mail, and express. Because of its fundamental importance to the carrier and the public, a study of the freight service will first be made. References: CLARK, WM. L. and MARSHALL, WM. L. Corporation Law. Keefe-Davidson Co., 1901. CLEVELAND, F. A. and POWELL, F. W. Railroad Promotion and Capitalization. Longmans, Green & Co., 1909. HAINES, H. S. American Railway Management. John Wiley & Sons, 1897. HAINES, H. S. Efficient Railway Operation. The Macmillan Co., 1919. HINE, CHARLES D. Modern Organization. The Engineering Magazine Co., 1912. HINE, CHARLES D. Letters from an Old Railway Official, 2 volumes. Simmons-Boardman Publishing Co., 1912. HUNGERFORD, EDWARD. The Modern Railroad. A. C. McClurg & Co., 1912. JOHNSON, E. R. and HUEBNER, G. G. Railroad Traffic and Rates, Vols. I and II. D. Appleton & Co., 1911. JOHNSON, E. R. and VAN METRE, T. W. Principles of Railroad Transportation. D. Appleton & Co., 1921. KRUTTSCHNITT, J. "Operating Organization of the Union Pacific and Southern Pacific System," Railway Age. Vol. 46, p. 1113. MCPHERSON, LOGAN. The Working of the Railroads. H. Holt & Co., 1906. Official Guide of the Railways and Steam Navigation Lines of the United States. Published monthly by the National Railway Publication Company, 424 West 33rd St., New York City. (Contains lists of higher officers of all departments of various railroad companies.) XIII FREIGHT SERVICE Freight papers: the bill of lading; straight and order bills of lading; the live stock contract. Limitation and nature of carrier liability. Title to goods en route, and reconsignment. The beginning and termination of carrier liability. Other legal problems. The way-bill. Forms used at destination. Unit billing. The handling of freight at terminals. The movement of traffic. Demurrage, reciprocal demurrage, and track storage. Evolution of railway interline practice. Compensation for use of "foreign" cars. Advantages and disadvantages of private cars in railway service. The future of private-car development. It is no less true today than it was a half-century ago that judgment concerning the financial promise of any railway project hinges upon the production of affirmative evidence that an adequate freight traffic exists or is in reasonable prospect. Without such adequate tonnage the outcome could be nothing short of disastrous. It is not strange, therefore, that the mechanism of existing lines has been developed largely about the freight service, that even the route itself has often been determined more largely by tonnage considerations than by topography, by minimum distance and curvature, or by gradients. To the description of this mechanism, which makes possible the efficient handing of freight traffic, and to the discussion of those questions which are incidental thereto, this chapter is addressed. FREIGHT PAPERS-THE BILL OF LADING That public and railway requirements relative to the movement of freight may be most effectively met, the issuance of certain papers in connection with each shipment is requisite. These papers are available to shipping and receiving agents in standard form. The first document in |