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involved due to the loss, damage, or destruction of property. Such items in a great many nonprogressive industries are an absolute loss because the work is delegated to a bookkeeper or shipping clerk who may possess a very superficial knowledge of transportation matters and consequently overlook all or many valid claims.

Cases are on record where traffic men have recovered for their employers in single instances sums far in excess of their annual compensation. The traffic manager who cannot offset his salary expense by transportation savings does not merit his spurs.

The line-and-staff organization (Fig. 3) is exemplified by a functional organization which is supplemented, so far as the executive control is concerned, by the services of an advisory board or consulting council, which is or are retained solely in an advisory capacity and do not have any authority in the administration of the departmental activities.

Each type of organization has its merit and its advocates. Many of the larger commercial and industrial organizations of the country have evolved composite organizations which embrace certain of the best points of each of these types. But irrespective of what plan is employed, the industry should prepare a chart indicating the plan underlying the organization, analyzing all its activities so that each employee may find his place in the departmental sun.

CHAPTER III

THE TRAFFIC MANAGER

Importance of Transportation-Traffic Manager as & Ne-
cessity--Intricacies of Traffic Work-Influence of Freight
Rates Selection of Individual-Qualifications Early Con-
ception of Traffic Work-Experience versus Technical
Training-Specialists-Transportation Studies-Advant-
ages of Vocational Training-Plant Location-Fuel-Sup-
plies—Water Routes—The Traffic Manager's Duties—
Classification of Line-Packing, Routing, and Rate Charts
-Auditing Freight Bills

Claims-Tracing-Car Records
-Bills of Lading-Rate Studies,Public Utility Complaints
-Foreign Trade-Tarit Files-Tarif Studies-Depart-
mental Accounting.

With the exception of agriculture, transportation to-day is the greatest industry of the age, and is attracting the attention of the biggest men of the age. For that reason it is necessary to exercise a great degree of care in selecting the individual that is to administer to this function of work or to supervise the activities of the department.

THE TRAFFIO MANAGER A NECESSITY

The unfortunate attitude of many concerns is: We do not need a traffic manager or a traffic department. Our shipping clerks are good enough for us.” This suggestion has often come from concerns that would be greatly affronted were it suggested that a competent accountant or an aggressive sales manager was an unnecessary factor in their organization. A competent traffic manager is, however, more often than otherwise, found to be more essential than some other department manager whose position in the concern has been taken as a matter of course.

Probably one reason why there is a misconception of the true place of a traffic manager is because his position as a part of any well-organized business is of comparatively recent origin. It may be safely stated that the industrial traffic manager became a possibility and a necessity with the amendment to the Act to Regulate Commerce, the Hepburn Amendment, which became effective in 1906, inasmuch as this amendment gave to shippers and carriers new privileges and new responsibilities.

The Act also imposes obligations on the shippers and the carriers which may not be disregarded either thru ignorance or by design without incurring heavy penalty. These penalties, in doses of $5,000 or more for each offense, are designed to cool the ardor of the most enthusiastic tariff slacker.

Previous to this time the representative of an industrial concern was often rated by the ability to secure special concession from the carrier. In many cases rate rules and regulations were not published and filed with the Interstate Commerce Commission at all, and in others where the provisions were filed there was absolute disregard of them. The amendment cited, however, is proving an effective antidote to this practice.

INTRICACIES OF THE WORK

The intricacies surrounding the assembling and distribution of goods are so numerous and varied and so interspersed with legal technicalities and obligations that it is clearly beyond the scope of the uninitiated to deal with them. And yet unfortunately in a great many cases the supervision of such matters has been vested in a shipping clerk of only mediocre talent.

Some time ago in an issue involving the construction of freight rate schedules in a proceeding in his court, Judge Kenesaw Mountain Landis, of the United States District Court at Chicago, had occasion to remark that “the publications involved in the proceeding were so ambiguous and so technically phrased as to be clearly beyond the comprehension of the laymen and to necessitate the services of experts to determine the effect of their phrasing, and the opinions of these experts were not always in accord.”

The traffic manager of a glass manufactory in West Virginia was asked at a hearing before the Interstate Commerce Commission what effect he thought freight rates had in the securing of business by an industrial organization.

He replied that prospective customers often looked up the rates of freight on a specified article from various shipping points and when they found that rates from a particular point were higher than the rates from some other point, the manufacturer working under the disadvantage of the higher rates frequently was not offered an opportunity of even making a bid or quotation tho he might be disposed to equalize in his selling price the disadvantage of the higher rates.

SELECTION OF THE TRAFFIC MANAGER

Qualifications

The usual rules governing the selection of the officers or executives for an organization should be applied to the selection of the traffic manager. The mental, moral, physical, financial, and social qualifications of the pro spective candidate should be analyzed in accord with the essential factors as exemplified in Fig. 4.

The predominating qualification at all times is the mental equipment of the individual. An efficient traffic manager is the product of intensified training or technical education, and his education is really never completed, as he must continually study and analyze the new problems that are continually arriving.

The traffic man must have an intimate knowledge of manufacturing costs, manufacturing processes, commercial geography, and trade customs thruout the world. He must be familiar, to some extent, with legal procedure, since many of the legal provisions regarding transportation of goods are becoming more and more perplexing to the shipping public, and the obligations of carriers and shippers are becoming more and more stringently drawn, and substantial penalties follow their nonobservance.

He must have an intimate knowledge of rates and tariff construction, the application of freight schedules, the principles underlying rate construction, and classification procedure, since to a large extent these are his trade tools. Above all he must have ability to make a survey of the firm's output from a transportation standpoint, to discover existing discriminations, and to eliminate them thru the application of

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