COPYRIGHT 1922

BY

A. W. SHAW COMPANY

PRINTED IN THE UNITED STATES OF AMERICA

Three periods in railroad history. Unrestrained

development. Regulation by States. Federal

regulation. Facilities kept ahead of traffic.

Development arrested 1906-1910.

II. THE RAILROAD SITUATION DURING THE

DECADE 1906-1916.

PAGE

7

9

16

Physical condition of railroads. Curtailment in
improvements from 1906. Receiverships in 1915.
Overload of war traffic.

III. THE RAILROADS' WAR BOARD

23

Reasons for creation of board. Organization.

Achievements. Causes of failure.

The President's proclamation. Reasons for fed-
eral control. Organization of U. S. Railroad
Administration. McAdoo's policies.

V. THE CONTRACT BETWEEN THE GOVERNMENT

AND THE RAILROAD COMPANIES

33

53

Points in dispute. Compensation. Measures of
upkeep. Delay in execution of contracts. Short
lines. Express contract.

VI. POLICIES OF UNIFICATION

66

Terminals and trackage. Pooling of equipment.

Movement via direct routes. Consolidated ticket

offices. "Off line" agencies and advertising.

CHAPTER

PAGE

VII. STANDARDIZING THE DESIGN OF EQUIPMENT 77

Standards for locomotives. Defects in general

plan. Freight cars.

VIII. ACCOUNTING AND STATISTICAL INNOVATIONS

Federal and corporate accounts. Universal

interline way-bill. Arithmetical checking. Appor-

tionment of revenues. Freight car accounting.

Operating statistics.

82

IX. PASSENGER AND FREIGHT SERVICE IN 1918

Curtailment of passenger service. Joint ticket

offices. Priority orders in freight service. Sail-

ing Day plan. “Off line” agencies.

87

X. RATES IN 1918

95

Control over rates. Rate increases. Traffic com-
mittees. Uniform classification.

XI. LABOR POLICIES DURING FIRST YEAR

FEDERAL CONTROL

OF

101

Demands of employees. Railroad Wage Com-
mission. Division of Labor. Wage increases.
Board of Wages and Working Conditions.
Adjustment boards. Effect on payroll expenses.

Traffic congestion. Export food situation. Move-

ment of coal. Troops movement. War tonnage

satisfactorily transported. Passenger service.

Lowering of morale. McAdoo's advocacy of ex-

tension of federal control. Hines' difficult task.

XIV. RELATIONS WITH STATE COMMISSIONS: ATTI-

TUDE ON RATE ADJUSTMENTS IN 1919 .

Improved relations with State Commissions.

Shippers' representation on traffic committees.

Adjustment of rate inequalities. Operating

deficits. Hines' refusal to increase rates.

141

CHAPTER

XV.

UPKEEP OF PHYSICAL PROPERTY

Curtailment of maintenance in 1919. Expendi-

tures compared with test period. Condition of

equipment.

XVI. ADDITIONS AND BETTERMENTS DURING FED-

ERAL CONTROL

Policies of Director General.

expenditures. Nature of work.

Summary of

XVII. POST-WAR LABOR POLICIES OF THE DIRECTOR

GENERAL

Labor unrest in 1919. Supplementary wage
increases. Strikes of shopmen and others.
National agreements. Centralization of au-
thority. Standardization. Adjustment boards.

XVIII. FINANCIAL RESULTS OF ENTIRE PERIOD OF

FEDERAL CONTROL

Extent of operating deficit. Claims for under-
maintenance. Director General's explanation.

XIX. How FAR THE POLICIES OF UNIFICATION

HAVE PROVED PERMANENT

Joint use of terminals, trackage and equipment.

Equipment standards. Accounting short-cuts.

Standardized operating statistics. "Off line"

agencies and advertising. Centralization of pur-

chasing. Permit system for freight. Passenger

train service.

XX. POLITICAL INFLUENCE DURING FEDERAL

CONTROL

XXI.

Political influence in labor and other policies.

Adequacy and accuracy of published statements.

Manipulation of rates and service. Federal con-

trol not adequate test of nationalization.

THE TRANSPORTATION ACT OF 1920 .

Summary of Act as finally approved. Transi-

tion period. Rate-making rule. Railroad con-

solidation. Creation of Labor Board.

163

171

199

205

CHAPTER

XXII. RAILROAD EVENTS IN 1920

Transition from federal to private control. Rate

advances. Wage advances. Record movement

of traffic. Financial results. Comparison with

1916.

XXIII. A REVIEW OF THE YEAR 1921 .

Public criticism of rates. Wage reductions.

Shrinkage in net income. Deferred maintenance

and improvements.

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236

254

. . 268

XXIV. THE SITUATION IN JULY, 1922.

Publicity policies. Railroad executives seeking

other fields. Transportation not attracting col-

lege men. Shopmen's strike. Problems of

finance. Railroad consolidation.

301

310

APPENDIX

THE PRESIDENT'S PROCLAMATION AND Statement to

CONGRESS

THE FEDERAL CONTROL ACT.

THE ACCOMPLISHMENTS OF THE U. S. RAILROAD Ad-

MINISTRATION IN UNIFYING AND STANDARDIZING THE

STATISTICS OF OPERATION

367