pany and the several classes of emer many classes of generally several classes of men consequence obtain monthly earnings of the emplo specifications, for many

On the Atlantic Coast Line cilitate inspection and so members paying monthly fr rial. Further, the records they receive the following ord the means for establishAccident benefits-Fre ery essential in forming a judgments ranging from $0 ess of prices asked on similar one year, and one-hal

than one year.

equipment purchases are not made Sick benefits-♪ department, the executive department Death benefits ch large matters.

The firs by the F of the sion

vani

by

th

sing agent is usually assisted by a fuel nspector, a stationer, and a general store

t of fuel is greater than that of any other

of railroad expense. The fuel agent superinspection, loading, and shipping, and in a

way the accounting for fuel purchased, and is generally as to conditions of the fuel market. tie-inspectors inspect all ties delivered and them under the specifications as first-class, secandass, or culls. All large purchases of lumber are espected and classified.

The

stationery-store stock is a supply of all the

numerous blank forms, stationery, and other office suppes. It is in charge of the stationer, who issues it on monthly requisitions from the various departments and from general division and agents' offices. The requisitions from the last named are usually supervised by the

traveling auditors.

The stores department is under the direct supervision of the general storekeeper, and the records of all material purchased for it are kept by him. While much of the material purchased is not delivered to the store

T'S DEPARTMENTS

direct to point of use on the line,

a record of all of it.

lumber and hardware must be kept es to be issued to various departments, amounts, on properly approved requisistock is replenished from time to time by asing agent on requisition from the storeThe general aim in the stores department is to as little money tied up in stock as possible without barrassing the departments requiring it by undue delays in filling requisitions. This supervision, especially on large lines, is very important on account of the large amount of material and supplies required to be kept on hand. On the Santa Fe System this item was on June 30, 1915, $15,870,460.48.

Semi-annual inventories of stock are taken as a check on the record of purchases and requisitions with the purpose of showing the disposition of all purchases and the proper division of cost to each department.

The department is also charged with the sale of old material unsuitable for railroad use, such as scrap iron, steel, rubber, and old equipment which through obsolesence or age can no longer be economically used.

The head of the department of purchases and stores is one of the three vice presidents reporting to the president and has an assistant. The purchasing and stores divisions are sharply distinguished, the former being in charge of a general purchasing agent and the latter under a general storekeeper. There are two assistant purchasing agents on lines East of Albuquerque, two purchasing agents on the Coast Lines, and a coal-inspector and tie-inspector in the purchasing department.

CHAPTER XIX

EXAMPLES OF TYPICAL ORGANIZATIONS

Having shown the organization and activities of the respective departments of various railroads, we may now consider them collectively, and for this purpose a small line, the Manistee & Northeastern Railroad, and a large system, the Atchison, Topeka & Santa Fe Railway, have been selected.

All systems of railroad have been created through the combination of small individual local roads, most of which, from financial necessity, were built a few miles at a time. By far the greater number of these original small roads have been consolidated into small systems by purchase, stock control, or lease and the small systems in turn into large systems.

MANISTEE & NORTHEASTERN RAILROAD

For the purpose of illustrating the organization of a small railroad the Manistee & Northeastern Railroad has been selected. This line is an excellent example of a small, independent, well-managed railroad, in which the supervision of more than one department is in the hands of one official. Such officials must be "allaround" railroad men, rather than specialists, but it will generally be found that there is one department which particularly engages their attention, the direct supervision of a portion or all of a department of less importance being delegated to an assistant.

The fact that, with average gross earnings (in a

period of five years) of about $3,000 per mile, it has been able to pay all expenses and add to its surplus practically $180,000 during a period of business depression speaks well for its organization and management.

This railroad has a main line seventy-one miles long extending from the port of Manistee on Lake Michigan to Traverse City on Grand Traverse Bay in Northern Michigan; a branch seventy-nine miles long from the main line to Grayling; one of fifteen miles to Provemont; and one of seventeen miles to Empire Junction.

The "property operated" statement covering this feature is as follows:

Its equipment consists of sixteen locomotives (of locomotives weighing more than forty tons); nine coaches; five combination cars; two baggage, mail, and express cars; 748 freight cars (of which forty-two are refrigerator cars); two snow plows; one steam shovel; two boarding cars.

It connects with the Michigan Central Railroad, Pere Marquette Railroad, Grand Rapids & Indiana Railway, Ann Arbor Railroad, and three small branch roads, and with lake steamers at Manistee.

Its operating ratio in 1914 was about seventy-six per cent, and in 1915 eighty-two per cent. The average for

twenty years has been 67.5 per cent. Abnormal conditions in market prices of fruit, potatoes, and lumber, the carrying of which commodities furnishes an important part of its revenue, explains the decrease in net earnings. Its funded debt (interest-bearing securities) is $1,291,000 and its capital stock $2,000,000.

Operation

The cost of maintenance of way in 1915 was $354 per mile of line operated. The cost of maintenance of equipment was (average) per locomotive, $1,800; per passenger car, $320; per freight car, $70.

Its passenger earnings per mile of road were $519; per train mile, $0.60; its freight earnings per mile of road were $1,900; per train mile, $2.07.

The organization of the road is shown in Figure 28. The general manager, who is also vice president, reports to the president and board of directors. Reporting to him are the general superintendent, superintendent, chief engineer, traffic manager, and auditor.

The general superintendent is also purchasing agent, and has charge of the shops, station agents, and dispatching service. The superintendent of motive power, dispatcher, and station agents report to him. His duties, therefore, are supervision of maintenance of equipment and purchasing, with a part of the transportation.

The superintendent has charge of all train movements and the maintenance of the roadway, having a roadmaster to assist him by direct supervision of the track forces. His supervision is therefore over a portion of Aransportation and a large part of maintenance of way.

The chief engineer has charge of the design and contruction of all new work, the maintenance of all bridge tructures, and all matters pertaining to the right of way